FRONT PAGE
1
CONTENT
1.0 Tables.............................................................2.
2.0 Introduction....................................................3.
3.0 History............................................................4.
4.0 Summary.........................................................5.
5.0 Research methodology....................................6.
6.0 Online v/s traditional shopping.........................7.
6.1 pros and cons of online shopping.....................................8, 9
6.2 pros and cons of traditional shopping..............................10
6.3 Online is better than traditional shopping.........................11
6.4change in market...............................................................12
6.5 market share of sites.........................................................13
6.6 people prefer traditional shopping.....................................14
6.7online sucks traditional market.......................................15, 16
7.0 Questionnaires’...............................................17
8.0 Conclusion......................................................18
9.0 Acknowledgment............................................19
10.0 Bibliography..................................................20
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INTRODUCTION
Shopping is an activity in which customer prefer one goods and services over
other which presented by one or more retailers.
Traditionally, people depend on traditional shopping. It means way of doing
shopping where we have to visit stores and buy goods. But with the change in
technology, way of doing shopping also changes which influences the lifestyle
and preferences of people. Now days online shopping become popular in the
world. With the one click, we can purchase every products & services and get a
wide variety. Some people prefer online shopping over traditional physical
stores. The purpose is to understand the growing importance of online shopping
and to examine the relationship between online shopping and traditional
shopping.
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HISTORY & BACKGROUND
In 1979, online system was invented by Michael Aldrich. From 1980, he
invented, designed, sold, maintained online shopping system by using videotext
technology.
India has got its own version of online shopping festival which started in
December 2012 when Google India partnered with e-commerce companies
including flipkart, homeshopping, snap deal etc. Online shopping has had a slow
trend in India, it has two reasons- internet penetration is quite low and secondly
shopping experience has been bad. But in the coming year, ecommerce market
has grown.
The year 2012 was predicted by many major retailers as the year that would
completely turn the face of shopping with many consumers predicted to engage
more in online shopping rather than traditional shopping.
Traditionally, Indians are conservatives in their approach to shopping. They
believe on touch and feel the product & use its features before buy anything.
But with the era of time, there is increasing dependence on online shopping.
People have commenced shopping through the convenience of online portals
from comfort of their drawing rooms.
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AIMS & OBJECTIVES/SUMMARY
As we seen, online shopping become popular, physical stores shopping is less
concern for shoppers with many of them preferring online shopping over
physical store shopping. The main objective of this survey is to find out how
shoppers make choice between online shopping and traditional shopping.
Find out consumers motivations to engage in online shopping v/s
traditional shopping.
Find out the pros and cons of online shopping v/s traditional shopping.
Impact of online shopping on traditional shopping.
Which site is more preferable?
Why some people prefer traditional shopping.
Growth of e-commerce in India.
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RESEARCH METHODOLOGY
Research design
The research design adopted for use is the survey method. The rationale for
selecting this kind of research design is because of its ability to help the
researcher in collecting data that is difficult to observe. Understanding the
motivations behind choice of mode of shopping and the perceived benefits of
online shopping versus offline shopping will require collection of information of
descriptive nature from the respondents. The advantage with this type of
research design over other methods such as experimentation or observation is
the ability to produce a wide range of information on opinions, attitudes and
motives and this is why it becomes important in this study.
Target population
The target population in this cases the people between the age group of 20-50
who are majorly engaged in shopping.
Sampling size
The type of sampling method that will be used in this study is the simple random
sampling method. The advantage of this method is that each of individuals has
equal opportunity to participate in this study.
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ONLINE SHOPPING v/s TRADITIONAL SHOPPING
Online shopping can be defined as purchasing items from webs or e-bay through
electronically retailers as opposed to shop or store. Buying clothes from Amazon
rather than local shops is example of online shopping. There are more than 50
websites available where people can purchase products like amazons, snap deal,
mantras, e-bay, flip kart, jabbing, home shopping, pay tm, shop clues, naaptol,
goibibo, lens kart.
Traditional shopping means buying products by visiting the place where you can
actually see touch and use the features of products and services before
purchasing. We can visit malls, meals, hats, streets shopping, local stores,
departmental stores, showrooms, weekly markets for purchasing products and
services.
Both have their pros and cons, some people prefer online shopping where as
some people prefer traditional shopping depending on their perception and
experiences. There are now many people who only buy products online, but at
the same time some people are sticking to ordinary shopping and they have
reasons as well.
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PROS & CONS OF ONLINE SHOPPING
Online shopping does not have space constraints and a wide variety of products
can be displayed on websites. It helps the analytical buyers to purchase a
product after a good search.
COVENIENCE of online shopping customers can easily purchase the
products by sitting at home. They don’t need to visit malls etc. It is
convenient for them as it save time, efforts, wide variety, and range of
products are available, can compare various models and brand.
NO PRESSURES SHOPPING in physical stores, sellers try to influence the
buyers to buy the product whereas in online shopping there is no force
from seller side.
SAVES TIME customers don’t need to stand in queues in cash counters to
pay for products that have been purchased by them,
COMPARISONS BETWEEN BRANDS there are n numbers of products
available & we can actually compare different product offered by
different websites. We can compare prices and made purchase according
to our needs.
As every coin have two sides like online shopping also have some
disadvantages over advantages:
DELAY IN DELIEVERY long duration & lack of proper inventory
management results in delays in shipment though the duration of
selecting, buying, paying for online shopping is not more than 15 minutes
but the delivery of product to customers doorstep takes about 1 to 3
weeks. This prevents consumers from online shopping.
LACK OF FEEL AND TOUCH OF PRODUCTS due to lack of feel and touch
people concerns about the quality offered by them. Online shopping is
less suitable for clothing as we cannot make trial before reaching to
purchasing place.
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FRAUDS sometimes, there is a disappearance of shopping sites itself. As
online payments are not much secured. So it is essential for e –marketers
to pay attention to this issue to boost the growth of e-commerce.
In the end, online shopping is much popular and a great thing to have,
where you can get desired item but at the same time it also have some
disadvantages.
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PROS & CONS OF TRADITIONAL SHOPPING
Experience the lifestyle
VARIETY OF PRODUCTS: by visiting the stores, we can get a large number
of different products available and make purchases according to different
features, varieties, price value etc.
PRODUCT PHYSICAL TOUCH: the main advantage of traditional shopping is
we can actually see, touch, feel and use its features before purchasing it.
EASY TO ACCESS PRODUCT: we can easily get product whenever we
required. We don’t need to wait for the products and make immediate
purchase.
CONS OF THE TRADITIONAL SHOPPING
PRICE DIFFERENTIATION: the price of similar product may be
costlier in offline shopping after getting discounts and offers it is
expensive whereas online shopping may be cheaper.
WASTE OF TIME: for purchasing products, we have to go or visit
malls, stores which waste our time and sometimes we don’t get
what we really want to purchase.
In the end, I would like to add for make immediate purchase only
traditional shopping is suitable but at the same time we have to
waste time for it.
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ONLINE SHOPPING IS BETTER THAN TRADITIONAL
SHOPPING
Online shopping is better than offline shopping as online shopping
provides more options regarding the product, makes you aware
regarding the cost of the products compared to stores. As it saves
time and avoids crowd.
Now days people don’t have that much time that they spend on
shopping, this make online shopping popular because by just one
click we can purchase any product.
Another reason people enjoy online shopping is that you can often
find a product more cheaply online than stores.
As online shopping takes less time.
Compound annual growth rate by country in e-commerce
2016 to 2021:
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
India South korea China Australia
India is growing fastest in e-commerce, says study. India have
highest contribution in online shopping that is 31.2%, whereas
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South Korea have 13.2%, China have 9.9%, Japan have 9.9%,
Australia have 8.3% contribution.
Number of online shoppers increase from 69 million in 2016
and the number is going to cross 100 million
By 2017.
69 million 100 million
2016 2017
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market share
9%
15%
44%
flipkart
snapdeal
amazon
32%
others
The most preferred website for online shopping is flipkart as
it was the only site for online shopping in the country for
many years later when other sites came its market went
down still it is most preferred site because of superior brand
quality of goods and services.
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Why do customers prefer buying in stores?
8%
9%
to see and touch the prduct
18% to get product quickly
personal experience
65%
advantage of promotion
There are instances in which you must shop the traditional way. Like, if we need
milk for baby, then we don’t depend on online shopping. We have to go stores
and get those things immediately.
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Preference of the product with same price both in shop and on
internet:
31.30%
shop
internet
68.70%
This study's shows that if the product has same price both in online and offline
then 68.7% population prefer buying products through internet as it saves time
but in case of shop only 31.30% population prefer shopping through shops.
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Preference of respondent for shopping medium:
80%
70%
60%
50%
40%
73%
30%
20%
27%
10%
0%
online shopping offline shopping
73% of population go for online shopping as they find it more convenient
whereas 27% customer go for offline shopping.
E-commerce share of total retail sales in India from 2014 to 2019
Statistic shows retail e-commerce sales as percentage of total retail sales, in
India from 2014 to 2015 and a forecast until 2019. In 2015, e-retail sales
accounted for 1.7% of all retail sales in India, this figure expected to reach 4.4%
in 2019.
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QUESTIONNAIRE
1. People prefer more:
Online shopping ( )
Traditional shopping ( )
2. Which site is more popular?
Flipkart ( )
Jabong ( )
Snapdeal ( )
Others ( )
3. Online shopping more by:
Male ( )
Female ( )
4. Why people do traditional shopping because:
Touch and feel product ( )
Get product quickly ( )
Advantage of promotion and sales ( )
Personal experience ( )
5. Online shopping by youth because:
Save time ( )
Less efforts ( )
Large varieties ( )
Affordable
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CONCLUSION
This survey informs that youth are more engaged in online shopping because
they enjoy online shopping and the revolution in technology among the youth
population. Flipkart is most preferable site by the youngster. They are increasing
demand of online shopping because it provides a large number of varieties for
customers to choose at reasonable price and sometimes even at less price than
market price.
Earlier people more dependent on traditional way of shopping but now with the
change in technology e-commerce also came and increase in growth rate of
market share which hardly hits the retail stores. As the trend of traditional
shopping decreasing from last 2014 year. With the rapid growth of products and
brands people have speculated that online shopping will overtake retail stores
shopping.
However, the availability of online shopping produces educated customers that
can shop around with relatives ease without having to spending a large amount
of time.
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ACKNOWLEDGEMENT
This report would not have been possible without the assistance and participation
of many people. We sincerely appreciate and acknowledge their contribution. But
in particular we would extend our gratitude to RNBGU for providing us such
platforms where we can get chance for enhance our personal skills.
We are very much grateful to our business communication inspector Dr. Kiran
Pareek of RNBGU, who have enriched our knowledge and gave us a moral
support to do this report. We are also highly thankful to them for showing the
right path and encouraging us for the preparation of this report.
We are very thankful to those entire respondents who give their valuable time and
gave related information for completion of this report.
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BIBLOGRAPHY
Source of forester data : online retail forecast 2016-2017
https://www.vccircle.com. 17 jan 2018
Ethesis.nitrkl.ac.in
M.economic times by ET bureau, 10 jan 2017
https://mediaindiaeu >
https://www.statista.com/topics/2454/e-commerce-in-india/
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