Effectiveness of e commerce in the companies of Rajkot

region




Index

Particulars Page no.
CHAPTER 1
1 Introduction
CHAPTER 2
2 Review of Literature
3 Objectives
CHAPTER 3
4 Research Methodology
CHAPTER 4
5 Data Analysis, Result &
Interpretation

CHAPTER 5
6 Findings
7 Recommendations
8 Limitations of Project
9 Conclusions
Chapter:- 1
1.1 Introduction:-

eCommerce is emerging as a new way of helping business enterprises to compete in the market
and thus contributing to economic success. eCommerce can help deliver economic growth,
increased business opportunities, enhanced competitiveness and better access to markets. At
present, though most small enterprises lack the knowledge of how investment in eCommerce
could benefit their businesses and help them develop that competitive edge. This is at a time
when the opportunities for small enterprises to adopt eCommerce are growing due to improved
access to the technical and communication infrastructure.
Enterprise support agencies can play a key role in helping small enterprises attain the benefits
that eCommerce has to offer. Agencies can also look beyond the technology, and understand
how real commercial benefits can flow to individual enterprises and sectors from adopting the
new business methods that are required to use eCommerce effectively.
This handbook will help your agency understand more about eCommerce and what
eCommerce has to offer your entrepreneur clients. It will help you to decide whether to expand
support for eCommerce in your agency, what type of eCommerce support to provide, and how
to go about providing that support.
What Is eCommerce?
eCommerce involves the sale or purchase of goods and services over computer networks by
businesses, individuals, governments or other organisations. eCommerce builds on traditional
commerce by adding the flexibility and speed offered by electronic communications. This can
facilitate improvement in operations leading to substantial cost savings as well as increased
competitiveness and efficiency through the redesign of traditional business methods.
eCommerce is the application of current and emerging information and communication
technologies (ICTs) to conduct business. These include existing technologies like landline
telephone and fax, but the ICTs offering most scope for small businesses are mobile phones,
electronic mail and other Internet-based services.
However, eCommerce is not just about using new technologies. eCommerce can also help
support profitable business relationships and assist you to more effectively manage and run
your business enterprise. This will involve creating more effective external interactions with
customers, clients, collaborators and suppliers, but it can also mean improving internal
business efficiency and even the emergence of new products and services.

eCommerce may involve selling directly from businesses-to-consumers (B2C eCommerce).
For example, a number of craft producers and tourism enterprises have already found some
success dealing directly with customers.

eCommerce can also be conducted directly between businesses (B2B eCommerce). This is by
far the most common type of eCommerce at present. B2B activity includes portals that operate
as electronic marketplaces or as auction sites. Benefits of eMarketplaces can include reduced
costs, better research and quicker transactions for buyers. Rewards for sellers include improved
customer service levels and cheaper exposure to customers.

There is also business-to-government activity (B2G eCommerce) that refers to the growth in
supply of goods and services for online government procurement potentially a large growth
area in developing countries.








What Is Driving e-Commerce For Small Enterprises?
The need for micro- and small enterprises to consider adopting eCommerce is driven by global,
national and regional business trends. These relate to markets, costs, new technologies and
political factors as follows:
Adaptation to rapid market changes that are impacting on export-led and domestic markets.
Cost competition and the need to compete more effectively in both local and export-led
sectors.
Globalisation of the production and supply of goods and services and the need to integrate
small enterprises more effectively into the supply chains of larger businesses.
Increased customer expectations and consumer power buyers expecting to be able to access
web-based information about products and services, for example.
Adaptation to new technologies an overall need for technological upgrading.
Greater role for information in business and the need to access, process and communicate it
efficiently and effectively.
Government deregulation and liberalisation lowering costs of access.
Bilateral and multilateral trade agreements opening up markets to developing country
producers.
Adaptation to higher quality standards such as ISO9000 ICTs are acting as an enabler in this
area.
The 'me too' attitude the lure of the latest technological gizmo or gadget.
It is important that enterprises and agencies like yours that support them understand the
specific driving forces for eCommerce in their particular sector. For example, eCommerce in
some sectors such as automotive and agricultural or horticultural products is driven by
emergence of B2B eMarketplaces that use not the open web as their medium but private
networks or restricted-access auction sites. Other sectors driven by global growth such as
financial and business services or travel and tourism will be reacting more to global
developments. In all cases, then, it is important to understand what is driving eCommerce on a
sector-by-sector basis.
What Are The Benefits Of eCommerce For Small Business?
eCommerce can provide substantial benefits to small enterprises via improved efficiencies and
raised revenues. It enables a new way of working to emerge as businesses face the future and
embrace the new economy. eCommerce enables small business entrepreneurs to gain access to
better quality information, and thus empowers them to take informed decisions in their
businesses.
Most importantly, eCommerce can give a competitive advantage. It can help strengthen market
position and open up new business opportunities with the potential to improve profits. Benefits
of eCommerce can arise in the following ways:
Cost Reduction Benefits:
Reduced travel costs: by using a mobile phone, email and other ICTs to substitute for
journeys.
Reduced cost of materials: more information means better choice of suppliers and more
competitive prices.
Reduced marketing and distribution costs: for example, publishing a brochure online can
reach an unlimited number of potential export customers and allow regular update.
Reduced sales costs: the Internet provides unprecedented opportunities for businesses to
reduce the costs of trade locally and, even more, across borders.
More efficient supply chain management: can eliminate the need for middlemen leading to
lower transaction costs (including marketing, sales, transaction processing), reduced overhead,
and reduced inventory and labour costs.
Improved internal functions: cutting down on meetings, improving the exchange of critical
knowledge, eliminating red tape, and streamlining communications.




Market Benefits:
Greater reach: a web presence can allow entrepreneurs to reach out to customers far beyond
their immediate location.
More brand awareness: offering new avenues of promotion for products and services.
Improved customer service: providing more responsive order taking and after-sales service to
customers; this, in turn, can lead to increased customer loyalty.
Increased market awareness: entrepreneurs can become more aware of competition within
their market and more aware of market changes, which can lead to product/service innovation
or quality improvement.
Other Competitiveness Benefits:
Increased efficiency: eCommerce not only reduces costs but it can also increase the speed of
transactions; both buying and selling.
Continuous trading: suppliers and customers, if they wish, can access a 24-hour/7-day sales
service particularly important when trading through time zones.
Specialisation: eCommerce can help entrepreneurs focus their activities making it easier to
build relationships with other enterprises and communicate their needs to support agencies.
Many of these benefits can be gained through relatively modest investments in new technology
and systems. Greater benefits may accrue as the enterprise moves up the eCommerce adoption
ladder (see Section B1). It is important to realise, however, that the benefits outlined are not
exclusively tied to eCommerce. For example, market benefits may be achieved more
effectively through better business networking and the building of personal business
relationships, rather than through use of the Internet. This emphasises the importance of
adopting an approach towards eCommerce that puts business objectives first, rather than
believing that technology alone can deliver the benefits described above.
Growth of E commerce in India.

Ecommerce is set for rapid growth in India, according to new research. Boston Consulting
Group predicts online transactions in India will hit 1.95 trillion rupees (28.5 billion) by 2005.
The study, presented at a software industry conference in Bangalore, says the biggest strides
will be made in business-to-business transactions." Anaonva

It can quote at least a dozen other similar headlines from journals that matter, different words
but the same essence. According to earthweb.com, the CEO of CISCO predicted "explosive
growth in Internet usage in India." According to him "the equalizer in life will be Internet and
education. Going by those figures, by 2004, India will have 50 million Net users, and the
country will soon witness the transition of economics, products & services, and technology
(voice, video and data. India has the best education system in the world at the university level.
It would become a leader in Asia (in Internet technology)."

I feel this time its different from the past. Far from the hype and the obscene money
show of the late 90s the fundamentals this time are strong. Also adding to this is the increased
penetration of Internet, adoption of ecommerce as a way of transaction and presence of
multiple modes of payment. Further combined with this is the fact that sites like baaze.com
seem to have pioneered the "steal deal" model, translating in true value for money for the
buyer. Consider this a resident of Munnar in Kerela down south, or Pithorgarh in extreme north
of Uttarachal can order a Chinese made MP3/CD player for around Rs.1,500, almost the same
price as a resident of Mumbai or Delhi from Baaze.com. Not just the uniformity in price but
also value for money. A similar Indian version has an MRP of around Rs.4,000.

Let us take example of Online Shopping in India. We have seen some of the big players
actually entered Ecommerce market in India and this looks like an emerging opportunity for
every player. Based on the global pattern in this field, we have seen two kinds of players, one is
Product Selling Site and other is Informative Site. As per Alexa, a reputed web information
company, websites like GSMArena and CNET get 35% and 21% traffic respectively from
India. Amazon gets 4% traffic from India alone. Its food for thought why would Indian users
frequent US Online Shopping websites? Looking at this trend, few guys from India came up
with this idea of launching desidime, an online shopping community to find best deals,
coupons, freebies and product reviews for Aam Janta. DESIDIME is community which is
created by the users, for the users, to share the best deals, be it daily deals, special promotions,
freebies, coupons and product reviews. The site features the top deals on home page that gets
selected by the community by voting it as Happy deal. They also have Deal Baba which
finds a deal for you and does all the research for you. To make it exciting for users they
frequently organize contests and lucky draws And yes, they even reward deal hunters in their
own currency Desi Dimes which one can redeem for exciting gifts like gift vouchers, iPod,
PS3 etc. They pay you 50 dimes (equivalent to Rs. 50) for simply filling up a registration form.
PERSONALLY SPEAKING.,. DESIDIME HAS JUST CHANGED THE WAY
FOR SHOPPING IN INDIA.. !!! THE WAY THEY TREAT CONSUMERS IS VERY
NICE.. !!! ALL THE GREAT DEALS AND LATEST COUPONS ARE HERE.., AND
MOREOVER THEY REWARD YOU TO CONTRIBUTE TO THE COMMUNITY.. !!!
CLICK HERE TO BE A PART OF DESIDIME AND GET SOME CHEAP STUFF.. !!
-ABHAY GULERIA from TRIVANDRUM


A Few Indian Success Stories

Naukri.com Indias premier recruitment site has captured around 50% of the recruitment
market. Started just 6 years ago Naukri.com is a huge success story.
ICICIDIRECT.com - Stock trading simplified, Icicidirect.com is today the countrys premier
trading portal. I started trading on it 3 years ago and its simplicity and ease in transaction has
absolutely captivated me.
Baaze.com I can be a buyer and get the best value for my money. I can be a seller and sell my
inventory at best prices. Baaze.com is Indias answer to ebay. The countrys premier shopping
site started as an auction site and graduated to be the most popular platform shopping site.
www.rajindraflorist.com - Whoever said small cant be beautiful is wrong.
www.rajindraflorist.com is today a success story and shows the way internet and www is
rewriting the history of enterprise in India.
Irctc.com - Railway reservation made easy. I have used it and found it to be very user friendly.
One of the best things about this site is that a credit card is NOT an essential requirement for
buying tickets here. Instead the site offers a direct debit facility having tied with most of the
popular banks.

Growth
E-commerce in India is projected to grow 10 times in value over the next five years, according
to a joint study undertaken by the country's main software industry body and the Boston
Consulting Group. E-commerce is expected surge to Rs 1.95 trillion by 2005 according to the
study released by the National Association of Software and Service Companies (NASSCOM)
and the Boston Consulting Group.
It seems to be a good time for ecommerce in India. No hype, simply strong fundamentals.
Eyeballs and venture funding are no longer important, instead value and getting the numbers
right seem to be new mantra. Thats good news in itself because this mantra hasnt failed in the
last 200 years of corporate history I know of.
Chapter :- 2

2.1.Literature review:-
Research Project for E-Commerce Adoption, Acceptance, and Prototyping in Abu Dhabi
Author(s): Mohd A. Radaideh (UAE University, United Arab Emirates), and Hassan M. Selim
(UAE University, United Arab Emirates)
Source title: Innovations Through Information Technology
DOI: 10.4018/978-1-59140-261-9.ch096
ISBN13: 9781616921255
The proliferation of Internet usage as a business environment is changing the way businesses
structure their strategies and processes. The objective of this project is to specify the critical
success/failure factors affecting the adoption of E-Commerce in the United Arab Emirates,
particularly in the Abu-Dhabi as an example of Arabian Gulf countries. Another objective is to
use the critical factors in proposing an E-Commerce prototype that suits that part of the World.
Currently, the critical factors are being identified and assessed using the Technology
Acceptance Model (TAM). The first phase of this project involves surveying the factors that
affect the adoption and acceptance of E-Commerce, and administer questionnaires to identify
the critical factors. Based on these factors, two models will be developed, one to address the
E-Commerce adoption by businesses, and the second to address the E-Commerce acceptance
by customers. Structural Equation Modelling (SEM) provides the theoretical foundation of the
first phase. In the second phase, the critical factors are used to design and implement a
Web-based E-Commerce model that will facilitate several activities such as; search for a
product, making purchasing decision, and gathering pattern. The model will incorporate
third-party authentication services to monitor vendors, and consumers.



Rabeya Sultana, Jorge L. Lopez and Lazar Rusu

e-commerce small and medium enterprises small enterprises pre and post adoption
barriers Sweden

The research in this paper has looked to find the barriers that small enterprises in
Sweden have faced in the implementation of the e-commerce during pre and post adoption
phases. Taking four small enterprises as case studies the paper is presenting the post adoption
barriers faced by these enterprises that are currently using e-commerce. The outcome is that
security issues associated with e-commerce identified in previous studies appeared as an
obstacle in both pre and post adoption phase. Moreover lack of time to improve e-commerce
activities, synchronization of demand and supply, price war among competitors, need for
extensive marketing effort, payment related hazards are explored and identified as
post-adoption barriers. Finally, a model has been proposed through which we wish to
consolidate both pre and post adoption barriers and have a complete picture of the barriers
faced by small enterprises in implementing e-commerce in Sweden.

2.2Objectives:-

To determine the market potential related to the E commerce in Rajkot
To know the awareness Regarding Ecommerce in Rajkot city
To Identify the market scope for the E commerce in Rajkot city
To determine the effectiveness of ecommerce in Rajkot city
To findout the factors affecting he effectiveness of E commerce

2.3 Statement of problem:-

To determine the effectiveness of Ecommerce in the companies of
the Rajkot region










Chapter:-3
3.1 Research methodology:-

A structured questionnaire for the study of E commerce was designed different company and
public awareness within the scope of given objectives and the survey was conducted within
Rajkot city. Public from the allotted areas were interviewed to understand their perception
regarding E commerce.

3.1.1 Data collection:
Primary data collection from Questioner
Secondary from web sites and magazines

3.1.2 Sampling method:
Convenient sampling

3.1.3 Research Tool:
Structured Questionnaire
3.1.4 Research design:
Descreptive research
3.1.5 Ms- excel:
A series of tables were obtained from the compiled data in totality using pivot
tables for the different criteria.

3.1.6 Sample size:
150 companies around Rajkot city





3.2 Hypothesis:-

H0: The use of e commerce is not effective in Rajkot region
H1: The use of e commerce is effective in Rajkot region

H0: there is no significance effect of payment factor in the Effectiveness of E commerce.
H1: there is significance effect of payment factor in the Effectiveness of E commerce.

Chapter:-4

Data Analysis, Result & Interpretation


Que.1 Have you doing any Transaction by internet?

Table:-

Response Percentage
Yes 102 74.46
No 35 25.54
137 100


Graph:-






Interpretation:-


From the above data it shows that the Transaction by the internet is very low. The
Companies of the Rajkot region are not using the internet very well for the transaction. The
data shows that the 74% of companies are not using internet for the transaction.

74%
26%
Chart Title
Yes
No
Que.2 How much you using the Internet for transaction?

Table:-

Response Percentage
Frequent 59 39.34
Rarely 66 44
Once only use 8 5.34
Not yet use 17 11.32
150 100

Graph:-






Interpretation:-


Above data show that the the frequency of internet use is very low. There are few
companies arwe there which are using the internet very frequently. About 39% companies are
using frequently and 48% companies are using rarely. This percentage shows the usage rate of
the internet.
39%
48%
5%
8%
Chart Title
Frequent
Rarely
Once only use
Not yet use
Que 3 for what purpose are you using internet?


Table:-

Task Response Percentage
A. Communication with employee 47 9.63
B. Information search 135 27.66
C. Obtaining the after service 35 7.17
D. Banking and financial service 53 10.86
E. Electronic payment 27 5.53
F. Training and education 66 13.52
G. Other 125 25.61
488 100

Graph:-



Interpretation:-

The data indicates the porpose of internet use. The companies of the Rajkot region use
the internet mostly for the information search. The analytical data tells that the 27% for
information search, 13% for the training, 10% for banking,9% for communication and 25%for
the other routine works.

10%
28%
7%
11%
5%
13%
26%
Chart Title
A. Communication with
employee
B. Information search
C. Obtaining the after service
D. Banking and financial service
E. Electronic payment
Que.4 which type of security tools are you using?


Table:-

Security Tools Response Percentage
A. Secure server
26 5.82
B. Fire walls
47 10.53
C. Login password
145 32.51
D. Authentication
86 19.3
E. Antivirus programmed
142 31.84

446 100


Graph:-




Interpretation:-


The security tools is prime important for the effective and secure use of the internet.
The data for the security tools shows that the companies of Rajkot region are using the Login
password and antivirus programme most. The 33% companies are using the login password
and 32% companies are Antivirus. The tools which secure the internet are not uses the widly
this shows the coverage of the internet.

Que.5 Are you aware regarding the concept of E commerce?

Table:-


Graph:-





Interpretation:-

The awareness toward the E commerce concept shows that how much it had covered
the pie of E- commerce knowledge. The data shows that the awareness of E commerce is very
low in the companies of Rajkot region. There are 31% companies which know the Ecommerce
very low and 44% companies are exactly dont know the concept of the E commerce.

9%
16%
31%
44%
Awerness toward E commerce
Very much
partly
So So
Not So
Response Percentage
Very much 13 8.66
Partly 24 16
So so 47 31.34
Not So 66 44
150 100
Que.6 Do you use the E commerce?

Table:-


Hypotesis:-

H0: The use of e commerce is not effective in Rajkot region
H1: The use of e commerce is effective in Rajkot region

X X2
47 2209
103 10609
150 12818

Z = x -
/ n

x =50
N=150
n=2
=1.

S.d. = x2 n(x)2
n-1

= 12818 2(50)2
2-1
= 88.42

Z = x -
/ n

Response Percentage
A. Yes 47 31.33
B. No 103 68.67
150 100
= 50 - 1
88.42/2

= 0.78

Level of significance = 5%
Critical value = At 1 level of 5% significance Critical value is 1.96.
Conclusion = zcal<ztab

Here, the zcal of z test is 0.78 and the ztab at 5% level of significance is 1.96. Hence,
taken sample of accepted region null hypothesis is accepted.


Interpretation:-

The above hypothesis shows the result that the use of E commerce is not so effective in
the companies of the Rajkot region. The z cal values of the test are less than the z table value
which proves that the null hypothesis is accepted. The null hypothesis is about the effectiveness
of the E commerce. So the data shows that the use of the E commerce is not effective in the
Rajkot region.



Que. 7 which of the following reasons is the most important to apply for the E commerce
In your opinion

Table:-

Response Percentage
A. To build the consumer interest and advertise 147 31.21
B. Online presence 145 30.78
C. More information about the firms products and service 100 21.25
D. Providing connection 45 9.55
E. Assuring customer satisfaction 22 4.67
F. Dissolving geographic barrier 12 2.54
Total 471 100

Graph:-




Interpretation:-

From the above data we can know the interest of the companies to use the E-commerce.
The 32% of the companies are taking for the building the consumer interest and advertise. The
30% companies are using for the online presence. Other 40% includes for the more information
about the firms products and service, providing connection, Assuring customer satisfaction
and dissolving geographic barrier.
31%
31%
21%
10%
5% 2%
Tasks
A. To build the consumer
interest and advertise
B. Online presence
C. More information about the
firms products and service
D. Providing connection
E. Assuring customer
satisfaction
Que.8 what application are you going to use for electronic transaction? (For the Trading
porpoise)

Table:-


Graph:-










Interpretation:-


Above data shows that the 46% of the companies are uses the Buying and selling
application for the Trading. The 32% companies are using the marketing and promotion
application and other 22% uses the import and export and financial service.

45%
12%
32%
11%
Chart Title
A. Buying and salling
B. Import and Export
C. Marketing and promotion
D. Financial service

Response Percentage
A. Buying and selling 103 45.57
B. Import and Export 27 11.82
C. Marketing and promotion
72 31.8
D. Financial service 24 10.81
226 100
Que. 9 What are the benifits that you will gain from the E commerce?

Table:-

Responce Percentage
A. Reduce the transaction cost 120 26.78
B. To improve the quality of the product 86 19.2
C. Reduce the price 100 22.33
D. To speed up the business processes 122 27.22
E. Others ____________ 20 4.47
448 100

Graph:-



Interpretation :-


The companies of the Rajkot region gain the benefits of the speedy transaction and the
cost related benefits from the E-commerce. The data shows that the 54% companies are getting
benefits of these two factors.

27%
19%
22%
27%
5%
Chart Title
A. Reduce the transaction cost
B. To improve the quality of
the product
C. Reduce the price
D. To speed up the business
processes
E. Others ____________
Que.10 Do you have a web site ?

Table:-

Response Percentage
Yes 103 68.66
No 47 31.34
150 100


Graph:-




Interpretation:-

From above data it shows that the 68.66% companies are having their own websites for
the use of the internet. The 68.66% tells about the awareness of the internet transaction
application. The companies are willing to shows the online presence to the customers.

69%
31%
Chart Title
Yes
No
Que.11 How much the size of your selling via the internet?( Per month)

Table:-

Response Percentage
A. Nothing at all 52 34.65
B. Less than 10000 37 25
C. Between 10,000 -50,000 23 15.34
D. Between 50,000 -1,00,000 18 12
E. Between 1,00,000 -10,00,000 14 9.34
F. Above 1000000 6 4
150 100

Graph:-




Interpretation:-


The companies which are doing trading by internet is between nothing to the 10,
00,000. The data shows that the most of the companies are not getting the order from the
internet. The big company which has the great market presence is about the 13%. The
analytical data tells about the presence of the small companies in the Rajkot region.

35%
25%
15%
12%
9%
4%
Chart Title
A. Nothing at all
B. Less than 10000
C. Between 10,000 -50,000
D. Between 50,000 -1,00,000
E. Between 1,00,000 -
10,00,000
Que.12 Which Payment System would prefer for Transaction?

Table:-

Response Percentage
A. Credit card 32 21.34
B. Cash 107 71.33
C. Online payment 11 7.33
150 100

Graph:-





Interpretation:-


The payment factor is more responsible for the effectiveness of the E commerce. Most
of the companies are prefers the cash payment after the transaction. From the above data it
shows that 71% prefers the cash payment and only 7% prefers the online payment. The hirer
percent of the cash payment shows the trust factor of the payment.

22%
71%
7%
Chart Title
A.Credit card
B. Cash
C. Online payment
Que. 13 Is payment factor is responsible for Effectiveness in our organization?


Table:-



Hypothesis:-


H0: there is no significance effect of payment factor in the Effectiveness of E
commerce.
H1: there is significance effect of payment factor in the Effectiveness of E commerce.



X X2
89 7921
61 3721
150 11642


Z = x -
/ n

x =50
N=150
n=2
=1.
Response Percentage
A. Yes 89 59.33
B. No
61 40.67
150 100
S.d. = x2 n(x)2
n-1

= 11642 2(50 )2
2-1

= 81.50

Z = x -
/ n
= 50 - 1
81.50/2

= 0.85
Level of significance = 5%
Critical value = at 1 level of 5% significance Critical value is 1.96.
Conclusion = zcal < ztab

Here, the zcal of z test is 0.85 and the ztab at 5% level of significance is 1.96. Hence,
taken sample of accepted region null hypothesis is accepted.



Interpretation:-

The answer of the z test shows the acceptance of the null hypothesis. This tells about
the significance effect of the payment factor on the Effectiveness of the E commerce.
Que.14 Which of the following barriers might face the e Commerce?

Table:-

Respons
e
Percentage
A. The existing of the electronic market 123 40.19
B. The existing of companies providing Software for the internet and
ecommerce
74 24.15
C. Issuing rules and assistance and participating in e Commerce
projects
23 7.77
D. Others _____________ 86 27.89
Total 306 100

Graph:-



Interpretation:-


The above data shows that the perceived barrier comes in the implementation of the
E-commerce. The 40% feels the existing of the electronic market as the barrier. About 25%
feels the existing of companies providing Software for the internet and ecommerce as the
barrier.from this we can know that the companies are not getting the proper guidelines of the
application of E commerce.

40%
24%
8%
28%
Chart Title
A. The existing of the electronic
market
B. The existing of companies
providing Software for the internet
and ecommerce
C. Issuing rules and assistance
and participating in e Commerce
projects
D. Others _____________
Que.15 Would you like to Apply this e commerce after knowing?

Table:-

Response Percentage
A. Yes 67 65.05
B. No 36 34.95
103 100

Graph:-




Interpretation:-


After describing the concept of the E commerce 65% companies have shown the
interest to apply the E commerce in there company. The 35% companies have rejected to apply
for the reason of the small enterprise and payment factor. The hiring of technical staff and less
knowledge of the internet is also includes in that factors.
65%
35%
Chart Title
A. Yes
B.No
Chapter:-5

5.1 Findings:-

1. The analysis shows that the Use of the internet is not high in the Rajkot region. There are
25 % of the companies have not tried the transaction by the internet.

2. The frequency of internet use is very low. This shows that the companies are not willing to
use the internet for the transaction. There are several factors which is responsible for the
usage frequency.

3. The companies of the Rajkot region use the internet mostly for the information search. The
analytical data tells that the 27% for information search, 13% for the training, 10% for
banking,9% for communication and 25% for the other routine works.

4. The security tools is prime important for the effective and secure use of the internet. The
data for the security tools shows that the companies of Rajkot region are using the Login
password and antivirus programme most.

5. The data shows that the awareness of E commerce is very low in the companies of Rajkot
region. There are 31% companies which know the Ecommerce very low and 44%
companies are exactly dont know the concept of the E commerce.

6. The 32% of the companies are taking for the building the consumer interest and advertise.
The 30% companies are using for the online presence. Other 40% includes for the more
information about the firms products and service, providing connection, Assuring
customer satisfaction and dissolving geographic barrier.

7. The payment factor is more responsible for the effectiveness of the E commerce. Most of
the companies are prefers the cash payment after the transaction.
8. The most important factor is payment. The research shows that the significance effect
of the payment factor on the Effectiveness of the E commerce.

9. The 40% feels the existing of the electronic market as the barrier. About 25% feels the
existence of companies which providing Software for the internet. By this we can know
that the companies are not getting the proper guidelines of the application of E commerce.

10. There are four types of the barrier is most responsible for the effectiveness of E-commerce.
Infrastructure barriers (Technology, Telecommunication, High access
cost.(connectivity), Access to equipment) Socio-culture barriers (Transactional trust,
Shopping as a, social place, Limitation on personal contact, Language/content) Economic
barriers (Economic conditions, Educational system, Payment system, Logistics)














































Infrastructure
barriers
Technology
Telecommunication
High access cost
(connectivity)
Access to equipment
Socio-culture
barriers
Transactional trust
Shopping as a
social place
Limitation on
personal contact
Language/content
Lack of government
policy & support
barriers
Economic barriers
Economic conditions
Educational system
Payment system
Logistics

E-commerce
adoption &
diffusion in
companies of Rajkot
region
Lack of government
policy & support
barriers
Barriers to E -commerce
5.2 Recomandation:

1. The first recommendation is for the creating the awareness of the E commerce trading
by the seminars like the M tradeyog which is associated with the rajkots company.

2. For the overcoming the barriers of the payment factor, When selecting an eCommerce
platform and hosting service, the merchant needs to ensure the platform employs strong
encryption for payment processing and customer data retention. If the merchant is using
an online third party credit card processor, the merchant also needs to ensure the
payment processor is secure. There are many such payment processors and a merchant
needs to diligently research each. The merchant also needs to ensure the eCommerce
platform supports the desired payment processor.

3. A merchant should not forget to include real world methods for the customer to contact
the merchant. Also the merchant should consider providing a method for phone orders.
A prominently displayed "Contact Us" page is critical. The "Contact Us" page
should have a phone number and, ideally, some physical mailing address. And as noted,
for customers still squeamish about ordering over the net, an eCommerce platform
should provide a method for the merchant to manually enter and process phone orders.

4. By reducing the gaps between the companies expected application and the available E
commerce software we can increase the use of the E commerce.

5. By corporate tie up for the live project we can generates the awerness and benefits of
the E commerce in the companies of the Rajkot region.
5.3 Limitation :-


1. The sample size is limited. The research covers the random companies of the Rajkot
region.

2. All the respondents could not fill their questionnaire on their own due to language
problem and also problem of time and lack of positive behavior.

3.
brands.

4. Findings of the study are based on the assumption that the respondents have given
correct information

5.4 Conclution:-

The Internet is not yet a universally accessible resource inRajkot region. Most region is lack
the necessary policies and infrastructure that would enable widespread usage of the Internet. In
spite of the fact that the necessary conditions for supporting Internet usage are not in place in
mostregion. The Internet has enormous potential as a tool for development.

The extent of adoption is hampered by a ranges of obstacles including the unavailability and/or
unreliability of infrastructure, the absence of government policy frameworks, the lack of
banking facilities and amenities (such as credit cards), and ignorance on the part of possible
users about the enormously beneficial potential of ecommerce. The level of education, the
availability of IT skills, the level of penetration of personal computers and telephone within the
companies hinders adoption of ecommerce.

Despite the limitations of most companies region, it appears that ecommerce is indeed relevant
to developing countries, despite the current limitations with the existing infrastructure and
other issues related to the economical and socio-cultural conditions. Ecommerce can be an
extremely beneficial tool in companies region provided that certain problems are resolved and
provided that the governments of companies region demonstrate that they have the political
will to remove the barriers that currently stand in the way of widespread adoption.

Although E-commerce is a relatively new method of business, its impact and diffusion was
unexpected, i.e., it has penetrated and radically altered the marketing and distribution
paradigms. The scale of business generated through E-commerce is multiplying exponentially.
The success of Internet marketing was too obvious for the Rajkot region to ignore or deny the
potential and benefits of such a technology.

The perceived benefits included: competitiveness, better image, efficient processes, and better
information system. However, despite the perceived benefits, E-commerce adoption was
hindered by a number of straints or barriers. Major barriers were thought to be the problems of
keeping up and understanding the technology itself, lack of trained manpower, uncertainties
with regard to its operations and regulations, and high switching costs. These findings do
provide the firms perspective of E-commerce in terms of its benefits to their companies as well
as the barriers to its full scale adoption. Hence, any policy that aims at promoting E-commerce
should take these factors into consideration. The results support the development of E-business
portals to cater to their needs and rectify their problems. E-commerce portals would enable
companies to share the high investment cost of constantly changing technology, reduce the
manpower requirement, and keep abreast with the advances in technology
5.5 Bibliography:

Websites:-

www.sxccal.edu/msccs/ecommerce1.pdf
en.wikipedia.org/wiki/Electronic_commerce
www.slideshare.net/gurjeit/introduction-to-e-commerce-6750069
www.ecommerceoptimization.com/ecommerce-introduction/

Books:-

Electronic commerce: The new business plateform for the internet by by Debra Cameron
Electronic commerce: Opportunities and challenges by Syed Mahbubur Rahman, Mahesh
Raisinghani
The E commerce book: Building and E-empire by Steffano Korper, et al.
C.R.Kothari, Research Methodology methods & techniques, New Age
International(p)ltd.publishers,2nd edition.

Journals:-

International Journal of Electronic Commerce by Editor: Vladimir Zwass, Fairleigh
Dickinson University (zwass@fdu.edu )
Research Project for E-Commerce Adoption, Acceptance, and Prototyping in Abu
Dhabi
Electronic Commerce Research and Applications by Electronic Commerce Research
and Applications

Questioner for E commerce research

I am a student of M.H Gardi school Of Management.I am doing a comprehensive project on the
Effectiveness of E commerce in Rajkot. This Questionniere is made to measure the
effectiveness of e commerce in companies of Rajkot. Could you Please spend few minutes of
your valuable time to answer the following questions by putting a tick in.
Name:
Name of company:
Address:
Designation:
Phone number:

Que.1 Have you doing any Transaction by internet?

A. Yes [ ]
B. No [ ]
Que.2 How much you using the Internet for transaction?

A. Very Much [ ]
B. Partly [ ]
C. Not so [ ]
D. So so [ ]

Que.3 which area do you us the Internet?
A. E mail [ ]
B. Purchacing [ ]
C. Sales [ ]
D. General purchacing [ ]
E. Account recivables [ ]
F. Financial reporting [ ]
G. Other [ ]
Que 4 In what are the purpose of using Internet?

A. Communication with employee [ ]
B. Information search [ ]
C. Obtaining the after service [ ]
D. Banking and financial service [ ]
E. Electronic payment [ ]
F. Training and education [ ]
G. Other [ ]

Que.5 What type of security tools you using?
A. Secure server [ ]
B. Fire walls [ ]
C. Login password [ ]
D. Authentication [ ]
E. Antivirus programme [ ]

Que.6 Do you use the E commerce?

A. Yes [ ]
B. No [ ]

Que.7 Are You aware regarding the concept of E commerce?

A. Very Much [ ]
B. Partly [ ]
C. So so [ ]
D. Not so [ ]

Que. 8 Which of the following reasons is the most important to apply for the E
commerce In your opinion

A. To build the consumer interest and advertise [ ]
B. Online presence [ ]
C. More information about the firms products and service [ ]
D. Providing connection [ ]
E. Assuring customer satisfaction [ ]
F. Dissolving geographic barrier [ ]

Que.9 What application are you going to use for electronic transaction?

A. Buying and salling [ ]
B. Import and Export [ ]
C. Marketing and promotion [ ]
D. Financial service [ ]

Que. 10 What are the benifits that you will gain from the E commerce?

A. Reduce the transaction cost [ ]
B. To improve the quality of the product [ ]
C. Reduce the price [ ]
D. To speed up the business processes [ ]
E. Others ____________

Que.11 Do you have a web site ?

A. Yes [ ]
B. No [ ]


Que.12 How much the size of your selling via the internet?

A. Nothing at all [ ]
B. Less than 10,000 [ ]
C. Between 10,000 -50,000 [ ]
D. Between 50,000 -1,00,000 [ ]
E. Between 1,00,000 -10,00,000 [ ]
F. Above 10,00,000 [ ]


Que.13 Which Payment System would prefer for Transaction?

A. Credit card [ ]
B. Cash [ ]
C. Online payment [ ]

Que. 14 Is payment factor is responsible for Effectiveness in our organization?
A. Very Much [ ]
B. Partly [ ]
C. So so [ ]
D. Not so [ ]

Que.14 Which of the following barriers might face the e Commerce?

A. The existing of the electronic market [ ]
B. The existing of companies providing Software
for the internet and ecommerce [ ]
C. Issuing rules and assistance and participating in e Commerce projects [ ]
D. Others _____________ [ ]



Que.15 Would you like to Apply this e commerce after knowing?

A. Yes [ ]
B. No [ ]

Yes ,then why?


No, then why?