1 Introduction About Online Shopping (1)

ONLINE SHOPPING VERSUS MALLA SHOPPING

CHAPTER -1 INTRODUCTION ABOUT ONLINE SHOPPING Online shopping (sometimes known as e-tail from "electronic retail" or e-shopping) is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Alternative names are: e-web-store, e-shop, estore, Internet shop, web-shop, web-store, online store, online storefront and virtual store. Mobile commerce (or m-commerce) describes purchasing from an online retailer's mobile optimized online site or app. An online shop evokes the physical analogy of buying products or services at a bricks-andmortar retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. In the case where a business buys from another business, the process is called business-to-business (B2B) online shopping. The largest of these online retailing corporations are Alibaba, Amazon.com, and eBay. HISTORY English entrepreneur Michael Aldrich invented online shopping in 1979. His system connected a modified domestic TV to a real-time transaction processing computer via a domestic telephone line. He believed that videotex, the modified domestic TV technology with a simple menu-driven human–computer interface, was a 'new, universally applicable, participative communication medium — the first since the invention of the telephone.' This enabled 'closed' corporate information systems to be opened to 'outside' correspondents not just for transaction processing but also for e-messaging and information retrieval and dissemination, later known as e-business. His definition of the new mass communications medium as 'participative' [interactive, many-to-many] was fundamentally different from the traditional definitions of mass communication and mass media and a precursor to the social networking on the Internet 25 years later. In March 1980 he went on to launch Redifon's Office Revolution, which allowed consumers, customers, agents, distributors, suppliers and service companies to be connected on-line to the corporate systems and allow business transactions to be completed electronically in realtime.

REVA UNIVERSITY BANGALORE

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ONLINE SHOPPING VERSUS MALLA SHOPPING During the 1980s he designed, manufactured, sold, installed, maintained and supported many online shopping systems, using videotext technology. These systems which also provided voice response and handprint processing pre-date the Internet and the World Wide Web, the IBM PC, and Microsoft MS-DOS, and were installed mainly in the UK by large corporations. The first World Wide Web server and browser, created by Tim Berners-Lee in 1990, opened for commercial use in 1991. Thereafter, subsequent technological innovations emerged in 1994: online banking, the opening of an online pizza shop by Pizza Hut, Netscape's SSL v2 encryption standard for secure data transfer, and Intershop's first online shopping system. The first secure retail transaction over the Web was either by Net Market or Internet Shopping Network in 1994.Immediately after, Amazon.com launched its online shopping site in 1995 and eBay was also introduced in 1995. Alibaba's sites Taobao and Tmall were launched in 2003 and 2008, respectively. Retailers are increasingly selling goods and services prior to availability through pretail for testing, building, and managing demand.

Michael Aldrich, pioneer of online shopping in the 1980s.


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ONLINE SHOPPING VERSUS MALLA SHOPPING INTERNATIONAL E-COMMERCE STATISTICS Statistics show that in 2012, Asia-Pacific increased their international sales over 30% giving them over $433 billion in revenue. That is a $69 billion difference between the U.S. revenue of $364.66 billion. It is estimated that Asia-Pacific will increase by another 30% in the year 2013 putting them ahead by more than one-third of all global ecommerce sales. The largest online shopping day in the world is Singles Day, with sales just in Alibaba's sites at US$9.3 billion in 2014. CUSTOMERS Online customers must have access to the Internet and a valid method of payment in order to complete a transaction. Generally, higher levels of education and personal income correspond to more favorable perceptions of shopping online. Increased exposure to technology also increases the probability of developing favourable attitudes towards new shopping channels. In a December 2011 study, Equation Research surveyed 1,500 online shoppers and found that 87% of tablet owners made online transactions with their tablet devices during the early Christmas shopping season. PRODUCT SELECTION Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine. Once a particular product has been found on the website of the seller, most online retailers use shopping cart software to allow the consumer to accumulate multiple items and to adjust quantities, like filling a physical shopping cart or basket in a conventional store. A "checkout" process follows (continuing the physical-store analogy) in which payment and delivery information is collected, if necessary. Some stores allow consumers to sign up for a permanent online account so that some or all of this information only needs to be entered once. The consumer often receives an e-mail confirmation once the transaction is complete.


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ONLINE SHOPPING VERSUS MALLA SHOPPING Less sophisticated stores may rely on consumers to phone or e-mail their orders (although full credit card numbers, expiry date, and Card Security Code, or bank account and routing number should not be accepted by e-mail, for reasons of security). PROCESS OF ONLINE SHOPPING A consumer uses web browser to connect to the home page of a merchant’s web site on the internet.

PAYMENT GATEWAY


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ONLINE SHOPPING VERSUS MALLA SHOPPING METHODS OF PAYMENT Online shoppers commonly use a credit card or a PayPal account in order to make payments. However, some systems enable users to create accounts and pay by alternative means, such as           

Credit card Debit card Payment websites PayPal Wire Transfer Electronic money of various types Purchase order Checks and Money order Mobile Payments Bank Transfer Cash On Delivery (COD)

Some online shops will not accept international credit cards. Some require both the purchaser's billing and shipping address to be in the same country as the online shop's base of operation. Other online shops allow customers from any country to send gifts anywhere. The financial part of a transaction may be processed in real time (e.g. letting the consumer know their credit card was declined before they log off), or may be done later as part of the fulfilment process. TOP TEN ONLINE SHOPPING WEBSITES 1. AMAZON 2. EBAY 3. WALMART 4. ALIBABA 5. TARGET 6. FLIPKART 7. BESTBUY 8. NEWEGG 9. OVERSTOCK 10. SHOP PRODUCT DELIVERY Once a payment has been accepted, the goods or services can be delivered in the following ways. For physical items:


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ONLINE SHOPPING VERSUS MALLA SHOPPING Shipping: The product is shipped to a customer-designated address. Retail package delivery is typically done by the public postal system or a retail courier such as FedEx, UPS, DHL, or TNT. Drop shipping: The order is passed to the manufacturer or third-party distributor, who then ships the item directly to the consumer, bypassing the retailer's physical location to save time, money, and space. In-store pick-up: The customer selects a local store using a locator software and picks up the delivered product at the selected location. This is the method often used in the bricks and clicks business model. For digital items or tickets: Downloading/Digital distribution: The method often used for digital media products such as software, music, movies, or images. Printing out, provision of a code for, or e-mailing of such items as admission tickets and scrip (e.g., gift certificates and coupons). The tickets, codes, or coupons may be redeemed at the appropriate physical or online premises and their content reviewed to verify their eligibility (e.g., assurances that the right of admission or use is redeemed at the correct time and place, for the correct dollar amount, and for the correct number of uses). SHOPPING CART SYSTEMS Simple shopping cart systems allow the off-line administration of products and categories. The shop is then generated as HTML files and graphics that can be uploaded to a webspace. The systems do not use an online database. A high-end solution can be bought or rented as a stand-alone program or as an addition to an enterprise resource planning program. It is usually installed on the company's web server and may integrate into the existing supply chain so that ordering, payment, delivery, accounting and warehousing can be automated to a large extent.

Design Customers are attracted to online shopping not only because of high levels of convenience, but also because of broader selections, competitive pricing, and greater access to information. REVA UNIVERSITY BANGALORE

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ONLINE SHOPPING VERSUS MALLA SHOPPING Business organizations seek to offer online shopping not only because it is of much lower cost compared to bricks and mortar stores, but also because it offers access to a worldwide market, increases customer value, and builds sustainable capabilities.  Information load Designers of online shops are concerned with the effects of information load. Information load is a product of the spatial and temporal arrangements of stimuli in the web store. Compared with conventional retail shopping, the information environment of virtual shopping is enhanced by providing additional product information such as comparative products and services, as well as various alternatives and attributes of each alternative, etc. Two major dimensions of information load are complexity and novelty. Complexity refers to the number of different elements or features of a site, often the result of increased information diversity. Novelty involves the unexpected, suppressed, new, or unfamiliar aspects of the site. The novelty dimension may keep consumers exploring a shopping site, whereas the complexity dimension may induce impulse purchases.  Consumer needs and expectations A successful web store is not just a good looking website with dynamic technical features, listed in many search engines. In addition to disseminating information, it is also about building a relationship with customers and making money..  User interface The most important factors determining whether customers return to a website are ease of use and the presence of user-friendly features. Usability testing is important for finding problems and improvements in a web site. Methods for evaluating usability include heuristic evaluation, cognitive walkthrough, and user testing. Each technique has its own characteristics and emphasizes different aspects of the user experience.

MARKET SHARE


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ONLINE SHOPPING VERSUS MALLA SHOPPING E-commerce B2C product sales totaled $142.5 billion, representing about 8% of retail product sales in the United States. The $26 billion worth of clothes sold online represented about 13% of the domestic market, and with 72% of women looking online for apparel, it has become one of the most popular cross-shopping categories. Forrester Research estimates that the United States online retail industry will be worth $279 billion in 2015. The popularity of online shopping continues to erode sales of conventional retailers. For example, Best Buy, the largest retailer of electronics in the U.S. in August 2014 reported its tenth consecutive quarterly dip in sales, citing an increasing shift by consumers to online shopping. There were 242 million people shopping online in China in 2012. For developing countries and low-income households in developed countries, adoption of ecommerce in place of or in addition to conventional methods is limited by a lack of affordable Internet access.

ADVANTAGES 

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Convenience One of the biggest benefits of online shopping is that you can buy almost anything you could imagine without ever leaving your house. Selection Online stores are able to carry more selection than traditional brick and mortar stores. Information Online shops tend to provide more information about items for sale than you would get in a physical store (unless you asked a sales associate). Price Because online stores don’t have to pay rent for storefront in a nice part of town and tend to sell much larger quantities of goods, they can offer to sell products for a much lower

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price. Availability Online retailers accept orders twenty four hours a day while consumers who wish to shop at traditional stores have to be available to visit the store during business hours.

DISADVANTAGES 

Hands On Inseption One thing that online stores can’t replace is the experience of actually seeing and touching the item you are considering buying.


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ONLINE SHOPPING VERSUS MALLA SHOPPING 

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Shipping Some major online retailers now offer free shipping for their products, but many require you to meet a minimum order cost to qualify. Wait Time Waiting for your item to arrive is another downside of online shopping. One of the great pleasures of shopping at a store is the instant gratification. Privacy When you shop online, you waive certain privacy rights to online retailer. Many people have fear to disclose personal and private information for security. Risky Credit card purchase Risky credit card purchase: It is pertinent to do online shopping from a reliable and a trusted web portal. A number of these web portals ask for payment through a credit/debit

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card. A never ending wait for the product to arrive You enter a shop. Choose an item of your choice. Pay the bills at the counter and the item

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is yours. After all of it, you walk into your house with gaiety with your possession in hand No bargaining No bargaining: Online shopping does not offer us that liberty to bargain and we are bound

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to buy the item in the quoted price. Deceptive pictures What may appear to have a matte texture in the picture may actually turn out to be quite

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glossy and shiny in reality. Lack of options In online shopping, you do not get the same item spread out in varied forms and shape,

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vying for your attention. Makes you lazy With the advent of a new phenomenon called online shopping, people who have an access

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to the internet hardly show an inclination to venture out of their house into the open. Deprives you of tangibility Online shopping makes it extremely difficult to exchange items as well, in case of

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discrepancies. Shipping costs Shipping costs in most cases raise the price of an article and you may end up buying it at

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a rate higher than the market price. Internet does not come free of cost Internet does not come free of cost: every time you open a page on an online shopping portal to choose a specific item, you get charged for it.

AGGREGATION


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ONLINE SHOPPING VERSUS MALLA SHOPPING High-volume websites, such as Yahoo!, Amazon.com, and eBay, offer hosting services for online stores to all size retailers. These stores are presented within an integrated navigation framework, sometimes known as virtual shopping malls or online marketplaces. IMPACT OF REVIEWS ON CONSUMER BEHAVIOUR One of the great benefits of online shopping is the ability to read product reviews, written either by experts or fellow online shoppers. The Nielsen Company conducted a survey in March 2010 and polled more than 27,000 Internet users in 55 markets from the Asia-Pacific, Europe, Middle East, North America, and South America to look at questions such as "How do consumers shop online?", "What do they intend to buy?", "How do they use various online shopping web pages?", and the impact of social media and other factors that come into play when consumers are trying to decide how to spend their money on which product or service. According to the research, reviews on electronics (57%) such as DVD players, cell phones, or PlayStations, and so on, review on cars (45%), and reviews on software (37%) play an important role in influencing consumers who tend to make purchases online. Furthermore, 40% of online shoppers indicate that they would not even buy electronics without consulting online reviews first. In addition to online reviews, peer recommendations on online shopping pages or social media websites play a key role for online shoppers when they are researching future purchases. 90% of all purchases made are influenced by social media. Each day, over two million buyers are shopping online for jewellery.

RETAIL MARKETING Retail marketing is the process by which retailers promote awareness and interest of their goods and services in an effort to generate sales from their consumers. There are many different approaches and strategies retailers can use to market their goods and services.

INTRODUCTION


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SHOPPING MALL INTRODUCTION The concept of shopping in malls in India is undergoing a dramatic change. A few years back, people just used to visit a lot of stores for their needs, but off late every shopping mall seems to be overflowing with people of different ages- from children to adults. With globalization at its peak and paving a way for the international brands, people now feel that they can get anything that they want in these shopping malls be it electronic goods, apparel and consumer durables. For the past few years researchers have been working to establish a relationship between shopping in malls and the income level of people. The reason for conducting such a research is to find out which sections of the society (lower middle class or higher middle class) do a lot of shopping in the malls. But yet, not many people will be comfortable in sharing their income details as it is personal. This is the area which tests the researchers, as to how they will be able to establish a positive relationship between the two. This study will be conducted with the aim to develop a relationship between shopping in malls and the income level of people. The study primarily focuses on the consumers buying behaviour in a mall. It helps us to understand the mindset of the consumers, by which we can develop more products according to their needs. For this study the Spencer's Plaza mall will be chosen. Primary data, which is the feedback received directly from the consumers, will be collected and represented in statistical form. The outcome so obtained will be analyzed and possible conclusions will be drawn. Recently, there has been a tremendous increase in the number of shopping malls in Chennai. The reason for the sudden upheaval of so many shopping malls can be related to globalization taking its pace. The growth factors for the shopping malls are the conscious citizens who prefer a sophisticated environment to shop and also with so many international brands making its presence in India, it has created the need to establish a place which has everything within one roof. The concept of shopping malls in India is largely gaining popularity as it attracts customers by way of excellent ambience, style and elegance, having the potential to make one shop and enjoy the experience as well. Spencer's Plaza, Big Bazaar, Ampa skywalk, City Centre are the big players today. Adding to the list are the upcoming Chennai Central, Ramee Mall etc.


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Advantages of shopping malls:    

Increase in the growth of the organized retail sector. Monumental increment in economic growth. Employment generation by the organized retail sector. Good competition means better products & services.

Disadvantages of shopping malls:  The companies with superior resources would muscle out the ones inferior totem.  Monopolization of the organized retail sector In India, the emergence of shopping malls has mostly altered the lifestyle of the consumers. With the growth in income, changing attitudes, and also the demographic patterns favour the emergence of shopping malls.  The trends to follow in the future.  The shopping malls favour a growth in the Indian organized retail sector by10% within 2010.  There would be different formats of shopping malls depending on the region. Types of Shopping Malls In general, you will find only regional centres, superregional centres, and fashion/specialty centres on this Web site. Relatively few community centres were chosen, but appear here because the center may have, at one time, been considered regional center. Only a few theme/festival centres were listed in heavily urbanized areas, such as San Francisco, because of their particular attractiveness or size. Finally, the new designation, lifestyle center, displays because of their classic-mall type appearance even though they are without a classic-mall anchor store. Fashion/Specialty Centres Characterized as higher end, fashion oriented centres between 80,000 and 250,000 sq. ft. Community Centres Characterized as having between 100,000 and 350,000 sq. ft. Usually two types of anchors, such as a discount department store or large specialty/discount apparel store. Lifestyle Centres A new designation that has a loose definition. Generally, it's a center that does not haven anchor tenant in the classic sense (that is, a department store). However, lifestyle centres increasingly have a cinema as a major tenant. Others have just a small collection of exclusive shops. Outlet Centres


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ONLINE SHOPPING VERSUS MALLA SHOPPING Characterized as manufacturers' outlet centres between 50,000 and 400,000 sq. ft. Regional Centres Characterized as having between 400,000 and 800,000 sq. ft. usually two or more anchors such as a conventional department store, junior department store, mass merchant, discount department store, or fashion apparel store. Super regional Centres Characterized as having over 800,000 sq. ft. usually three or more anchors, such as a conventional department store, junior department store, mass merchant, or fashion apparel store. Theme/Festival Centres Characterized as tourist-oriented, retail and service centres between 80,000and 250,000sq. Ft. Components of shopping mall Food court A shopping mall food court consists of food vendors offering a selection of food. At atypical food court, food is ordered at one of the vendors and then consumed at a seating area, which is normally a plaza surrounded by the counters of the multiple food vendors Department stores A department store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line. Department stores usually sell products including apparel, furniture, appliances, electronics, and Additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewellery, toys, and sporting goods. Certain department stores are further classified as discount department stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries.


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1 Introduction About Online Shopping (1)

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