A study on Project Research on Analyzing traditional Stores with

online stores on the grounds of Cost of Selling

The project is a part of fulfillment for the degree of SEM IV BBA

requirement of Times Business school, Vashi, Navi Mumbai

BY- Sanjay Bhosale

Rohit Umrao
Kishan Shinde
By BBA SEM IV 2014

Name of the Project instructor- Ms. Tridisha Hazarika

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DECLARATION

We hereby declare that the project work entitled

Project research on analyzing traditional stores with
online stores with online stores in the grounds of cost of
selling submitted to the Times Business School, Vashi,
Navi Mumbai is a record of an original work done by
Sanjay Bhosale, Rohit Umrao, Kishan Shinde under
the guidance of Ms. Tridisha Hazarika, HR faculty of
Times Business School and this project work is
submitted in the partial fulfilment of the requirement for
the award of the degree of Bachelors in Business
Administration (SEM IV). The result embodied in this
thesis has not been submitted to any other University or
Institute for the award of degree or diploma.

Sanjay Bhosale
Kishan Shinde

Rohit Umrao

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Acknowledgement

First of all we would like to really thank our Instructor

Ms.Tridisha for guiding us through the tough times and being
lenient to us even when we did miss a few deadlines to submit
the data and to successfully complete the project in the given
time frame. We would really express our deepest appreciation
towards our parents for aiding us financially so that some of
our work was completed effortlessly. We would like to thank
all those sellers (Krishnal Sinha-Genius group,Sandeep
Kadam- Kalyan jewelers,Abdullah-Central Vashi ,Ashok
Rawat- big trands, Yeksheeta-Ohnineone.com) who welcomed
us and gave us a good response without making us wait for a
long time. Last but not the least we thank our college, Times
business school for giving us such a good opportunity to carry
out a project based on the two major types of markets in our
country.

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Table of contents:
1.Chapter 1 Introduction.... 5
2.Chapter 2 Methodology..13
3.Research and analysis.17
4.Discussion...25
5.limitations...26
6.Constraints......27
7.Future Scope...28
8.Conclusion..29
9.Biblography.31

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CHAPTER: 1 INTRODUCTION

We know that the advent of some new technologies has totally devastated
some old business. Thats the reason it is rightly said by someone that a
Manager of a business should keep a close eye on what is going on in his/her
surrounding because u never know that out of nowhere a new invention or a
amazing discovery could be the reason for that unavoidable lock on the door of
your bread and butter, For example, Telegraph business was closed due to the
arrival of telephones and likewise instant messaging has been reducing the no of
users of the short message service for a while now.
While it is true that better service attracts and retains customers but it is
equally true that a large group of customers could get attracted to a new and
more inexpensive product/service with the same thing being done more
efficiently and taking very less time out of their lives compared to the traditional
way. For eg , According to some musicians it is more time and money saving to
use a music production software(like the Sony ACID music studio 9)over the
traditional music studio where one has to make a huge hole in the pocket to

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create a music album. As long as the fanboyism is not affected in a negative

sense more and more musicians will consider using the software apt.
And this type of tech effect is also seen on the retail market. As more and
more websites are emerging and targeting a particular product segment or the A
to Z shopping portal of www.AmaZon.com for any product u may think of,
creating a shopping spree among the internet users.
Though internet marketing in India is low as compared to the western
countries; it is growing at fast pace with early adopters launching their websites
on daily basis. At present time, internet is playing a major role in removing
business limitations of past, now a sales person can directly reach clients
doorstep and offer the most satisfying services in a click. Advanced
technologies and web applications with safe transaction assurance are giving
enough reasons to the new age Indian buyers to shop online.
Smartphones, tablets and of course the computers are the main reasons
why the online market had a superfluous growth in the western countries. Web
experts believe that it will take some time to spread the online marketing
phenomena in Indian society by and large; however, it will seep in soon and
benefit many Indian consumers. Indians are catching online shopping fever
slowly, though right on time. The registered growth of 18% of online shoppers
in 2012 is giving tight competition to the retailers and is only going to increase ,
but on the other hand some believe that the online sellers have a feeble chance
to survive in the Indian market as the Indian consumers like to feel the product
before buying it so that they can be assured of its quality which is simply not
possible while shopping online , at least for now !
The following facts and figures will hopefully tell let us know how the
online shopping started and grew to be the biggest rival of the retail business:

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1. The first online shopping site on internet was the pizza shop by Pizza Hut in
1994.
2. The best seller product in shopping sites worldwide is Books.
3. Best-selling book on Amazon for 2012 was the autobiography of Steve Jobs"Steve Jobs".
4. The number of online shoppers in U.S is expected to grow to 170 million in
2015 according to eMarketer estimates.
5. Statistics from the online payment company PayPal show that 20% of those
who abandon or fail to complete an online purchase do so because they have
concerns about the security of their credit cards.
6. U.S e-commerce sales grew from 72 billion U.S. dollars in 2002, to 228
billion U.S. dollars in 2010.
7. Amazon's websites has 94 million visitors per one month (!)
8. Online shopping is more popular among younger and middle-aged user.
Shoppers between the ages of 35 and 44 make up 29 percent of all online
spending, though consumers between 25 and 34 are spending larger amounts
online. (By Transactis research group).
9. 72% of women looking online for apparel, it has become the most popular
cross-shopping categories.

And now some statistics specific to India :

The Indian E-commerce market scale was evaluated around $16 Billion
in 2013 and is expected to reach $56 Billion by the fall of 2023.
The growth rate has touched 85% mark till now and in next ten years, it is
projected to acquire 6.5% of the total retail market if India.
India has secured position in top 10 countries list of ecommerce chosen
by online buyers.
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 In a research conducted by eMarketer, it is stated that India crossed

$1.08875 trillion of ecommerce sales internationally. It recorded 21.9%
yearly growth as compared to 2011 and 19.3% jump in global sales.
More than 7.6 million people are found visiting deals and discounts based
websites, which is a proof itself of their growing fad for online shopping.
Now as we have seen the facts about the online business let us have a look on
the factors as to why are consumers deviating from traditional stores to online
stores ?
1. Commercial Factors
Cheaper Rates - The scale on which ecommerce operates is huge thus
sellers are able to offer great discounts and slashed prices. It excites a
budget-wary consumer as well as the random shoppers.
The developing logistics - Advanced logistics solutions have made the
delivery process easier and faster making the people more thrilled about
online shopping. Retailers are succeeding enough in reaching the
doorsteps earlier than promised.
Segment specific growth - The biggest impact in Indian online shopping
has been made by the travel industry. Around 75% of it is encompassed
by hotels booking, air ticketing, holiday packages etc.
Internet Progression - Web is a place that allows users to find, compare
and explore things that satisfy their needs. There are many brands which
are not easily and nearly available in each city of India. To shop them
online is thus the best and favored option as internet is widely available to

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people now. The cheaper rates of internet have significantly added to

trending ecommerce.
Smart phones Industry on rise - The rise in smart phones and tablets
demand has pushed the price down. The market is bound to grow even
more as more than 8,000 new smart phones are being sold each day. The
tablet market is evaluated to have sold 1 million of it in 2013 alone.
2. Technical Factor
The faster & accessible Internet - Advancement in New media
technology has boosted the accessibility, which in turn supports the
buying needs. The internet was in its budding state ten years ago but
today it is better & faster with 3G and 4G entering Indian domain. So, the
ecommerce sellers are guaranteed to make headway in business too.
Smart phones advanced technology - The more technologically
advanced Smart phones have come forward as the biggest promoter of eshopping trend and lifted the online sales figure up. The ease they deliver
makes the online shopping experience pleasurable for buyers.
Extending Mobility - A report published by Ernst and Young states that
4G and smart phone revolution in India is going to change the face of
media reach in India. India is said to have 1 billion wireless subscribers,
as of May 2012. This extending mobility has created a situation where
reaching out to rural India is not a trouble anymore. Mobiles are more
accessible than newspapers and electricity today.
Faster + cheaper Broadband 2G, 3G and now 4G, this development
chain has created many netizens in India. People are found to have

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caught the fancy of staying online and thats a positive sign for
ecommerce consumption.
3. Demographic Factors
Consumer stance - The success of ecommerce platforms like OLX and
Quickr has heightened the trusts of Indian consumers in online buying &
selling. They have generated a positive outlook towards online
marketplace that supports ecommerce industry.
Online means on life nowadays - Almost every activity takes place
online these days, whether it is ordering food, mailing a friend, searching
a job or booking a bus ticket. The average time spent per month has
increased from 12.9 to 17.4 and by 2015 it is expected to touch the mark
of 21.
Rise in disposable income - It has significantly added to this sea-change.
The spending power has risen and people are more willing to indulge in
regular shopping.
Computer literacy rate - With overall improvement in education rate,
the number of people disposed to computers is also increasing. Educated
people are seen to be more active in online purchase than the less
educated group.
4. Social Factor
Boom of Social Media - The social bombardment on web is pushing the
online shopping industry by making the consumer savvier. Brands are
getting a way to bridge the gap with its potential buyers through these
networks. India has the Facebooks third-largest audience population in
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the world after the US and Brazil. According to statistics, there is a big
fraction of people who use internet first time for just using social
networks and turn into regular internet users soon.
Changing Lifestyle - Urbanization has changed the lifestyle and peoples
needs have changed too. As per United Nations, more than 31% of Indias
population resides in urban areas and the shopping needs of urban people
are quite more than the rural ones.
Globalization- The socio-economic structure of India is heavily
influenced by Globalization. Development on trade, economy &
communication grounds have led to a state where people think globally
and act uniformly.
Young population - India has a major segment of young people that is
likely to reach 64% by 2020. Hence, younger generation is the key factor
behind this immense growth. With youngest generations growing tech
savvy, the eldest of families too are motivated to explore internet.
Product Line - The bigger portion of these online stores consists of
Apparel and other consumer goods which people do not feel apprehensive
to spend on.
Media Reach - FM, Television and outdoors reach in peoples lives is a
chief cause of Indian consumers growing inclination towards online
shopping. It impacts their buying tendencies to a great measure.
Digitalization - The state of National growth and everything being
digitalized is evoking confidence and attraction in people to go online for
fulfilling their routine needs.

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While some factors why consumers are shifting to the online stores are pretty
obvious some are not. Either way its pretty much clear why? Lets have a look
at some of the advantages and disadvantages of online shopping and the
traditional one.
So there are people who prefer to do their shopping online and then there are
those that do not. So when it comes to online shopping vs. traditional shopping,
both sides have their advantages and disadvantages. Lets say you are shopping
for fine china or silverware, it will be very difficult to purchase exactly what
you want because simply pictures will not be able to give you an idea of how it
looks and feels. This is where offline shopping or traditional shopping has an
edge over online shopping.
Security is another concern when it comes to online shopping vs. traditional
shopping. With online shopping there is no way of you knowing that someone is
stealing your data. You dont even know if you will actually get the things you
purchase. This makes online shopping a bit more unsecure when compared to
traditional shopping. Another disadvantage to online shopping vs. traditional
shopping is that there are many online stores that will ship within a certain area
for free but many times if you are located outside of the city or area you will
need to pay hefty shipping prices, unlike traditional shopping where you enter
in a store purchase what you like, get your credit card charged and leave.
Finding things online is pretty easy. You just open up a search engine like
Google and type in what you are looking for. This is probably the biggest
advantage of online shipping vs. traditional shopping. With traditional shopping
you will need to search from one shop in the mall to the other looking for what
you want, sometimes driving all over town to several different stores. There
might also be times when you wont find what you are looking for. With online

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shopping you will instantly know if you can find what you are looking for, or if
you cant, potentially saving you hours looking for what you want.
Quality is the biggest issue when it comes to online shopping vs. traditional
shopping. There is no way you will know if what you are purchasing is of the
quality you want. There are many online shops that sell cake but you have no
way to really know if the cake is tasty. With traditional shopping you get to
smell and in some cases even taste the cake. This way you know exactly what
you are purchasing and how good it is. Anyways the central reason why the
consumers are shifting to the online stores is the low price at which most
shopping websites sell their products to the customers, and the central question
is why are the able to do that ?
Our research is regarding why is the same product sold at a much lower rate
on the online store compared to a retail outlet ? Is the selling cost greater for the
retailers as they have to pay the shop rent and things like energy bill ? Are the
online sellers keeping a lower profit margin? OR is it something else altogether?
Are the citizens of India willingly accepting the online way to transact or do
they still prefer the traditional baniya system ?
The answers to these questions lie in the mind of retailers, online sellers and
the people of India.

Methodology
Title:
Analyzing traditional Stores with online stores on the grounds of Cost
of Selling

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Rationale of the topic:According to us, now a days Indian consumers are complaining to the
retailers (particularly to the ones who are selling the mobile phones)
that the retailers should reduce the price of the mobile phones and
especially the smart phones, the reason being the online stores selling
the same device at a much lower price compared to the traditional
retail outlets. We all might agree on the one thing that most of us have
tried to negotiate with the price of the cellphone by comparing its
price to the online store price tag ! Assuming that we are not wrong ,
this is a major threat to the retailers because in India the of computer
literate rate is only going to increase and with that the number of
people who transact online.
Is this a alarming situation for the retailers to adopt any new
marketing strategy or is it just a rough patch in business for the
retailers? Is it because of the cost to sell higher for the retail stores
compared to the online stores?

Aim1. To analyze where customers are inclined to buy a product?

2. To uncover that in which store is the cost of selling more (online or
traditional)?
3. To learn how important it is for the consumers to shop online?
4. To determine from where will the consumers prefer shopping if the
same product is sold at same price in both type of stores?
5. To know what percentage of the consumers trust online shopping
from the sample?
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6. To find out if the consumers still prefer to get the feel of the
product before buying it?
7. To know if online shopping affecting on retail business because
consumer can shop right from their home?

Objectives :

1. To know the constraints of the online stores and the retail

(traditional) stores.
2. To see if any of the two sides can or are willing to switch sides
*in doing their business in terms of the was nature of the way to
sell the products.
3. To know on what basis are the consumers going to make their
first purchase on an online shopping portal by going through
some secondary data available.
4. To find out if our sample consumers know the difference
between a sellers warranty and a manufacturers warranty? And
if they do, whose warranty do they prefer?
5. The not so popular Smartphone like the Xiomi Redmi 1s is not
easily available in the retail stores but some online stores on
eBay.in dont seem to have any difficulties in selling the same
Smartphone on eBay at a lower price. Whats the catch?
6. To find out from the secondary data available that what is the
increase in the online purchases over the last 10 years in India?
Sample description:
The sample is divided in three part viz, online store owners,
Retail or traditional stores owners and the consumers.
The sample size of each is as following:
Consumers
Online sellers

= 15
= 7
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Retail or traditional sellers = 7

..
Total sample size
= 29

Sample Distribution

Online Sellers
Retailers
Consumers

16
7

Data Collection procedure:

1. Three different questionnaires were made keeping in mind
the nature of sample to which they are associated.
2. The first Questionnaire was made for the Online Sellers in
which had 10 close ended questions.
3. The second questionnaire was made for the retail sellers in
which again had 10 closed ended questions.
4. The third which was the last questionnaire, was made which
had 15 closed ended questions, plus 4 open ended questions
and 11 rating questions.
5. The questionnaire for the consumer sample was distributed
among friends and family and was asked to be filled as
honestly as possible.
6. The questionnaire for the online sellers sample was recited to
the respected sellers over telephone calls and their reply was
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noted simultaneously. The details of the online sellers were

asked to the concerned employees of eBay.in which were
provided by them after carefully after verifying our group
member Kishan as their past customer.
7. The questionnaire for the retailers was filled by retail
employees working in different shops and outlets of some
retails chains and some were filled by the owners of private
retail shops. The retail questionnaires were filled in Vashi,
Navi Mumbai, and Mumbai by the group members namely
Rohit and Sanjay in a formal fashion.
8. Finally the report was made after the careful analysis of the
answers given by our sample population which was 29 in
number.

Analysis of the primary data:

Topic: Sellers thoughts on the inclination of the consumers preference VS

consumers choice of shopping between the two markets

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Retail

Online
Yes

28.59

No
71.41

Yes

28.59

No
71.41

Result: As mentioned in the pie charts above if we have a look at the retail poll,
the question asked to the retailers was do they think that plenty of the
consumers are opting for online shopping websites for their needs while
rejecting the retail shops ?, majority of the retail sellers take on the first
question is that the more consumers are opting the online shopping compared to
the traditional retail shops while on the other hand when a similar question was
asked to the online sellers they gave a result which was contrary to the one
asked to the retailers, stating that there is still great potential in the online
shopping market which is not optimally utilised and that a lot of potential
consumers are still not turning to online shopping .
Analysis: Trust is the basis of any business to maintain and raise its sales and
according to many consumers in our sample they feel that it is necessary for
them to trust on these online shopping websites so that they could shop there.
This trust is hardwired in the minds of consumers mainly by word of mouth and
the efforts of the website marketing department by promotion and advertisement
of the shopping websites. While it is seen that the retailers say that their sales
have dramatically reduced and the reason is online market, while the online
sellers think that their sales have not increased on such a level as it should have
been! However if a customer wants a particular product manufactured overseas
in a precise quantity, it would be very difficult to get it and would be next to
impossible to find it in a small Indian city.
Topic: Effect of Net Banking when employed by internet enabled devices and
Smartphone on the retail market and the penetration on net banking.

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Retail

online
Yes

28.57

No

Yes
No

42.86
57.14

71.42

Result: The questionnaire for the retail sellers has a question which asked the
retailers if the use of Internet and Smartphone affecting them as sellers and the
retail pie chart above clearly depicts that the majority of them said yes, on the
other hand the online sellers were asked if they think that the consumers fail to
use the net banking facility and it was found that almost 57% of the sellers
agreed upon the fact that a considerable amount of the consumers are not able to
use the net banking facility successfully , and when asked to the consumers the
maximum consumers responded to be using the debit/credit card facility while
very few of them agreed upon using the Cash on delivery(COD) and the net
banking or bank transfer facility.
Analysis: There is a lot of internet penetration in India in the last 10 years and
the number of users are doubled in number every (according to The Times of
India) and now a day every other person in India has a Internet enabled phone
or Smartphone which give a easy and effortless way to buy a product and
according to us this is a main reason why the sales of the retail market is
falling , and on the other hand talking about the Net banking , it is a
comparatively a long process to pay and the credentials required are normally
the bank accounts user ID and Password(password even may be of tow types
namely login password and transaction password for some banks eg. ICICI
bank) which are hard to remember while the Credit/debit card credentials are
readily embossed on the card and only the password is to be remembered to
make a transaction.

Topic: If a consumer goes to a retail shop will he get a better discount than the
online shopping websites? And if he does is this affecting the retailer?
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Retail

Online
Yes

Yes

28.59

No

No
4

Maybe

71.41

Result: As seen in the above pie chart of the retailers, most of them agree upon
the fact that the consumers are getting the same product a bit expensive in the
retail shop while almost 50% online sellers say that it is not necessarily
expensive in the retail shop every time but it maybe !

Analysis: Most of the retailers agree on the fact that the people will get a better
discount online but according to the online sellers some things may be a bit
more expensive when shopped online for eg the luxury items like hard liquor
and fermented beer are sold at the same price online(right now in begaluru)
excluding the shipping price! As most of us know that products are
comparatively inexpensive if bought online , this is the reason we get a feeling
that online market offers higher discount rate but in fact the retailers try to sell
the same product closer to the MRP unless and until we try to get a bargain on
it!

Topic : Does the online shopping affect the retail shopping because the
customers can right from their homes or maybe because they could see and feel
the product before buying the item ?
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Retail

Online
14.28

Yes
No

42.85

Yes
No

57.14
85.71

Result: Approximately 57% of the retail sellers feel that online shopping effects
on the retail business as the customers can shop right from their home while
approximately 43% stood against the statement. On the other hand a large
percentage of the online sellers feel that the consumers buy from the retail shop
not because they could feel and see the product.

Analysis: On one side the retailers agree upon the fact that comfort of shopping
right from the home given to the consumers by the online shopping websites is a
very huge barrier preventing the consumers to interest in the retail shops and as
we have established earlier that the online stores way more discounts then the
retail shops the increase in the sales of the retail sales is very difficult to obtain
but in fact they really have to work hard ever just to maintain their current sales
as the online shopping penetration is hardly going to decrease if not going to
STOP !

Topic: Do online shops give better deals then the retail shops or are the prices
high compared to the retail?

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Retail

Online
Yes

28.57

14.28

No
71.42

Yes
No

85.71

Result: As seen above it is clear that both the sellers have agree on the fact that
the online market gives better deals to the consumer and that the retail sellers
are selling it on a higher price.

Analysis: We think that this is probably because the operational cost for the
retailers is way more than their rivals as they need to pay for things like the
power bills + fancy shopping experience+ storage and maintaining the inventory
+ sales men salaries are just a few to be named whereas the two major types of
expenses for the online sellers are the warehouse and shipping cost which are
not as much as what the retailers have to pay for and on the on the hand the
sales of the major players in the online market are huge and a single retail chain
with limited no of shops faces all kinds of competition , The cost of running a
simple website hovers somewhere around INR 200 to INR 3000, while the cost
of running a rented shop for that matter is very high in a country like India
where the commercial property rates are sky high !

Title: Are the online stores and retail stores able to solve the customers
problems and provide a best possible customer support to the buyers of the both
stores?
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Retail
14.28

Online
Yes
28.59

No

85.71

Yes
No

71.41

Result: The 85% of the retailers think that they are not able to solve the
problems that quick as compared to online stores .On the other hand 71% of
online store owners think they are successful in customer support and try to
solve the problems as soon as they can

Analysis: Online sellers provide customer support via internet communication,

If one buys the product online in every easilt(it is just a matter of 5-7 minutes)
in the same way the comsumer and connect to the online support of the online
seller and ask for the queries of the product.Nowa days online sellers also
provide seller warranty (in case of phones the provide both software and
hardware warranty) and sell the product at very competitive price range.This
type of previlageis rarely seen in retail.When ever a customer buys the product
from and retail store if he has some questions or issues about the product he has
to go all the way again to the retail store to solve that.Whereas big online gaints
like amazon and flipkart and snapdeal again visit your Residence to pick up
the product if a cunsumer experience like this.

Topic: Which type of Store convinces for busy persons and What priorities the
customer has while buying a product?
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Retail

Online
Yes
no

Yes
No

42.85
57.17

100

Result: All the retailers in our sample agree on the fact that online shopping
convinces for busy persons. On the other hand 57% of online sellers think that
things are not moving that fast for the online shopping because the customer can
buy the product anytime anywhere whenever they have time but the has to wait
a lot delivery of the product, this is an advantage to Retailers.

Analysis: Both the stores have some limitations like the retail store has limited
time and place but can handover the products immediately to consumer after
buying. But when a person is too much busy and cannot access a retail store if
he is busy in the open timings of a retail store or the product is wishing to buy is
not available at his location and it is available in a location far away from his
location and he doesnt have time to go to that different location, In all these
conditions the buyer will opt for online shopping for said product. The online
sellers are trying to make the delivery time as least as possible.

Topic: Because of the fast growth of the online shopping do retailer wish to
open their online store?
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Wish or plans to open an online store?

14.28

Yes
No

85.71

Result: When the retailers were asked that do they wish to open their own
online store by looking at the growth of online stores 85% refused to open their
online store.

Analysis: When retailers were asked that do they wish to open their own online
store many refused and mentioned both the stores have different specialty
one(online) is meant for great deals and anytime shopping facility and
other(retailers ) is for service with decent prices (Services like giving the
detailed description and demonstration of the product before buying)

Discussion
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The retailers are really trying to compete with the online sellers and
are constantly trying to bring down the price so that they could attract
some customers lost to the online sellers. The retailers are fully trying
to utilise the face that the customers could see and feel the product
before they buy it and are trying to use it to their advantage. They are
trying to give the full description and demonstration of the product
with a demo. Sometimes they even offer insurance with a discounted
price with accidental damage guarantee on some electronics (eg.Sony
xperia Z1-Accidental damage guarantee)
The online sellers on the other hand have a good return policy of
approximately 30 days. The customers trust the online shopping more
because of the Cash on delivery where they dont need to disclose
their credentials anytime during the transaction. Whereas the online
shopping website offers one stop solution for your need to shop and
compare different brands. This is one of the big reasons why the
consumers are inclined towards shopping online. On the downside it
was found that the consumers feel that it is not user friendly or to be
more precise the consumers are not able to use it conveniently.
It is rarely found that a retail store having a 24X7 helpline but we a
shopping website like eBay.in does offer the same thing. The
automated process of the online shopping websites has reduces the
cost of running the business to face the customers in the form of
payments or salaries of the employees.

Limitations:
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1) Our research does not cover a huge sample size which could give
different results and conclusion.
2) It has been found that the retailers are mostly from Mumbai and
Navi Mumbai but the online sellers have been picked from across the
nation due to poor financial inputs and a shorter time period, which is
why our research conclusion ceases to be applied on a National level.
3) Though the sample consumers come from different cultural
backgrounds, it has been seen that there is uniformity in the answers
and some questions have also been answered in a similar fashion as
the other respondents.

Constraints:
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1)Lack of time: We felt a scarcity of time while working on the

research project as we had to make sure that the questionnaires had to
filled by Online Sellers as wells as Retail sellers who rarely spend the
time on non-productive work like filling a survey form.
2) Finding customers was a easy task but to get a fast reply from them
was a hard one.
3) Some customers may have assumed wrong conclusions about us,
considered us marketing salesmen trying to dig money from them by
selling a product which they dont really need.
4) Some retail sellers simply refused to provide us with even a single
thought!
5) Less finance made our work a bit more tedious and we were
exhausted filling the questionnaires sooner than when we would have
presumed it to be happening.

Future Scope
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As far now we have established that for most products, buying it

online is more desirable for consumers.
This habit of buying products of daily use and also the more
expensive commodities online has been hardwired into the minds of
the consumers in a time period of roughly five years, which was a
very slow but steady process. Now we have uncovered some likes and
dislikes of consumers for example the consumers prefer to pay for a
product using credit/debit card over net banking facility. They greatly
emphasize on the fact that they would get attracted to a website who
delivers the ordered shipment faster and the consumers also think that
the retail sellers should have their own shopping website For example
pizza hut, dominos,mobile store, CROMA, Ezone electronics ,et
cetera. Now all these findings from the questionnaires in our data
collection process could be used as factors on which a typical online
or retail store could be started

CONCLUSION
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The online sellers have established a separate empire of their own and
are a very strong competitor to the smaller retail sellers and the big
players. A single insight in the retail questionnaires could uncover the
biggest concern in the minds of the retailers and they are the
humongous online shopping websites offering a wide variety of
product to your doorstep in few clicks. According to the Times of
India many online shopping websites have increased the sales twofold
and the experts take on this is that the rate at which the sales are
increasing are not going to decrease anytime soon.
On the other side the retailers are consistently trying to maintain their
sales if not increase it and not lose any more loyal customers to the
online market just because of the higher discounts flashed at the
consumers. The retailers are providing every other thing, for that
matter a freebee with the product in question, like a theft insurance or
a accidental damage guarantee, a free installation for products like
ACs on most of the brands which is available on the shopping
websites on a very few brands, so that the customer feels that the
money spent by him is worth spending for the same product.
The first topic of our results is where the customers inclined towards a
retail store or online website, and it was found that they trust online
shopping and which is a big reason why some customers choose
online shopping on retail shopping, apart from the discounts they
offer.
It was also found that many consumers dont use Net Banking to pay
for a product but prefer using online debit /credit card payment.
The discount offered by the online websites is affecting the retailers
very much.

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It was also found that it depends on the customer priority, if he wants

to feel the product before he buys it or wants to buy it in a
comparatively low price but can wait for a few days.

So to sum it up the retailers are hot happy as the cost to sell a

product is much higher for them compared to the online shopping
sites, which results in a higher selling price of the retailers.

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BIBLOGRAPHY
www.timesofindia.com
http://blog.pricegong.com/2012/03/10-facts-about-onlineshopping.html
http://www.fatbit.com/fab/stats-figures-facts-learn-gloriousindian-ecommerce-growth/
http://upstreamcommerce.com/blog/2012/02/14/8-reasonsconsumer-likes-shop-online/

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