CHAPTER-1

INTRODUCTION

INTERNET:
Internet can be defined as the networks of network and thereby constitutes world's largest
network. It is actually a collection of thousands of networks that span globe, connecting
educational & commercial institutions, as well as individuals and small businesses to a wide
range of computer services, resources, and information. It is so large and complex and well
beyond the comprehension of a single human being. Presently 50 million highly educated people
are connected to internet in over 180 countries. Internet offers information on virtually any
subject in the world from Agriculture to satellites. There are 3 ways to describe the Internet:-
From the practical or commercial point of view, the Internet is a series of that are stored
electronically on accessible computers. These files contain information that can be searched,
read, and/or retrieved electronically.
From the social point of view, the Internet is a tool which millions of people from all over the
world use for communicating with each other by sharing ideas and information.
From the technical point of view, the Internet is a collection of interconnected computer
networks, or a "networks." By using specialized software, telephone lines and high speed
dedicated data lines, and employing the standard rules or "protocols" these machines can "talk"
to each other instantaneously.
BYTE magazine terms it "The Greatest Show on Earth" in its July 1995 issue. Bill Gates,
founder of Microsoft and one of the world's richest men quoted in the Times of India of 23rd
August 1995:- "The surging popularity of INTERNET is the most significant development since
the IBM PC was introduced in 1981. Like the PC, the
INTERNET is a tidal wave. It will wash over the computer industry and drowning many who do
not learn to swim in its waves".

WORKING OF INTERNET:
Connecting computers could be accomplished if every computer had a unique address much like
your street address. In theory, all the computers in the world could be connected to one really
long wire, and they could all talk to each other. There are several reasons why this won't work,

1
one of them being that there would be too many machines trying to talk at the same time and
they would interfere with each other. The wire doesn't have enough "bandwidth" - information
capacity - to handle all the traffic.
The Internet is a gigantic collection of millions of computers, all linked together on a computer
network. The network allows all of the computers to communicate with one another. A home
computer is usually linked to the Internet using a normal phone line and a modem that talks to an
Internet Service Provider (ISP). A computer in a business or diversity has a Network Interface
Card (NIC) that directly connects it to a Local Area Network (LAN) inside the business. The
business then connects its LAN to an ISP using A high-speed phone line like a Tl line. A Tl line
can handle approximately 1.5'million bits per second, while a normal phone line using a modem
can handle 30,000 to 50,000 bits per second. TSPs then connect to larger TSPs, and the largest
ISPs maintain fiber-optic backbones" for an entire nation or region. Backbones around the
world are connected rough fiber optic lines, undersea cables or satellite links. In this way, every
computer is connected to every other computer on the Internet.

HARDWARE REQUIREMENTS FOR INTERNET:

To use the Internet you need the following things;
Computer
Modem
Telephony system

SIGNIFICANCE OF THE INTERNET:

It's important to understand the significance of Internet's growth and popularity. In one sense it
could be compared to the proliferation of fax machines in the late 1980s. Our worldwide "fax
system" wasn't built overnight; it started with a trickle of a few fax machines here and there. As
businesses realized their usefulness and power, fax machines became more commonplace. The
value of each fax machine increased as more and more became available.
Similarly, stand-alone computers are useful, but their potential is limited by isolated
applicationsword processors and spreadsheets, for exampleand the amount of money you
have to spend on disk drives and CD-ROMs. A mere direct (full-time) or dial-up connection to
the worldwide Internet gives you access to more info-goods, services, and people than you'll ever

2
find on your own isolated computer or local-area network. The Internet is already the largest
computer network in the world and, in terms of connected networks, people, and resources; it's
getting larger, and therefore more "valuable," literally by the minute.
How large is the internet? According to the Internet Society (ISOC), a professional organization
of Internet developers, influencers, and users, as of spring 2000, the internet reached almost all
countries directly and 400 via email gateways, and consisted of more than 50,000 networks and
50 to 60 million computers. (An email gateway is a special connection that allows only
electronic mail to transfer between two or more networks.)
The bulk of Internet computers and networks still belong to the research and education
communities. This is not surprising, given that the Internet arose from the primordial research
ooze;however, many universities are teaming up with businesses to develop online catalogs and
archives. And, according to the ISOC journal, 31 percent of the networks belong to businesses.
Of the number of registeredbut not necessarily connectednetworks, 51 percent were
commercial. There's definitely a rising trend in commercial activity and connectivity; many
businesses have realized that they can link their enterprise networks to the Internet and gain
instant access to their customers. Some market research indicates that online servicesin
generalmake up almost a billion- dollar industry, with an estimated 25 percent per year
growth, so it stands to reason that providers of these services are migrating to the Internet, where
the action is.
The types of resources accessible through the Internet are growing at an astounding rate. The
term resource describes anything you can access on the Internet, no matter where it's physically
located. Examples of some Internet resources are a database of regularly updated weather
information in Michigan, an online magazine, a cartoon, and an archive of daily newspaper
articles. A resource can also be a mailing list or a newsgroup that brings together people from all
over the world to discuss shared interests such as soccer, cooking, and poetry. Suffice it to say that
there are literally tens of thousands of servers, archive sites, mailing lists, newsgroups, and databases
available on the Internet.

3
COMMON TERMINOLOGY:
SERVER & CLIENT:
To share the information in the Internet, the computers should be configured such a way that
they share the data with other computers. The Computer, which shares or hosts the data, is called
Server. The Computer, which takes the information from the server, is called Client.
The Server normally will run server software. Commonly used servers are Windows NT;
Windows 2000, Linux,UNIX, Solaris etc., the main functions of the server are the User
Management, Security and Data Storage & Retrieval.
The user can be a direct user on the server, such as system administrator, the terminal user
through a client machine or remote user through modem. A server has to authenticate the user
with password. It has to exchange the data with the terminal in the specified protocol.
Once the user is authenticated, the server responses the user for his request within the limitations
defined in the User Management.

WORLD WIDE WEB:

The Internet application that is currently drawing the most attention is the World Wide Web
(WWW). WWW is a series of servers that are interconnected through hypertext.
Hypertext is a method of presenting information in which certain text is highlighted that, when
selected, displays more information on the particular topic. These highlighted items are called
hyperlinks and allow the users to navigate from one document to another that may be located on
different servers.
The World Wide Web is a worldwide information service on the Internet. The World Wide Web
or the Web, as it is popularly known uses special software called a Browser. TCP/IP is the
communication protocol used by the Internet and is a must for the World Wide Web to function.
HTTP is the protocol used by the WWW services to make communications between a Web
Server and Web Browser. The World Wide Web also referred to as the WWW and "the Web." is
the universe of information available via hyper text transfer protocol (HTTP).
It can incorporate references to sounds, graphics, and movies, etc.: it can understand" other
Internet protocols, such as ftp, gopher, and telnet.

4
WEB PAGE:
A Web page is simply a special type of the file written in HTML. Publishing a Web Page means
transferring your web page to a place where an HTTP server can serve it. An HTTP server serves
most web pages, but we can also store web pages on a different file server.
Web pages can also publish Web pages on an intranet so that only people who are in your
organization will be able to see your Web pages.

MARKETING:
Various definitions of marketing have appeared through time:
It has been described by one person or another as a business activity; as group related business
activities; as a trade phenomenon; as a frame of mind; as a coordinative, integrative function in
policy making; as a sense of business purpose; as an economic process; as a structure of
institutions; as the process of exchanging or transferring ownership of products; as a process of
concentration, equalization and dispersion; as the creation of time, place and possession, utilities,
as a process of demand and supply adjustment; and as many other things.
All of these definitions provide useful but partial perspectives on the nature of marketing. We
would like to propose a definition of marketing that is rooted in human behaviour:

HUMAN NEEDS AND WANTS:

The starting point for the discipline of marketing lies in human needs and wants. Mankind needs
food, air, water, clothing, and shelter to survive. Beyond this, people have a strong desire for
recreation, education, and other services, they have strong preferences for particular versions of
basic goods and services.
There are no doubt that peoples needs and wants today are staggering. In one year, in the United
States alone, Americans purchased 67 billion eggs, 250 million chickens, 5.5 million hair dryers,
133 billion domestic air travel passenger miles, and over 20 million lectures by college English
professors. These consumer goods and services led to a derived demand for more fundamental
products, such as 150 million tons of steel and 3.7 billion pounds of cotton. These are a few of
the wants and needs that get expressed in a $1.3 trillion economy.
A useful distinction can be drawn between needs, wants, and intentions, although these words
are used interchangeably in common speech. A need is a state of felt deprivation of some generic

5
satisfaction arising out of the human condition. People require food, clothing, shelter, safety,
belonging, esteem, and a few other things for survival. People actually need very little. These
needs are not created by their society or by marketers; they exist in the very texture of human
biology and the human condition.
Wants are desires for specific satisfiers of these ultimate needs. A person needs food and wants a
steak, needs clothing and wants a Pierre Cardin suit, needs esteem and buys a Cadillac. While
people's needs are few, their wants are many. Human wants are continually shaped and reshaped
by social forces and institutions such as churches, schools, corporations, and families.
Intentions are decisions to acquire specific satisfiers under the given terms and conditions. Many
persons want a Cadillac: only a few intend to buy one at today's prices.
These distinctions shed light on the frequent charge by marketing critics that "marketers create
needs" or "marketers get people to buy things they don't need." Marketers do not create needs;
needs preexist marketers. Marketers, along with other influences in the society, influence wants.
They suggest to consumers that a particular car would efficiently satisfy the person's need for
esteem. Marketers do not create the need for esteem but try to point out how a particular good
would satisfy that need. Marketers also try to influence persons intentions to buy by making the
product attractive, affordable, and easily available.

PRODUCTS:
The existence of human needs and wants gives rise to the concept of products.
Our definition of product is very broad;
A product is something that is viewed as capable of satisfying a need or want.
A product can be an object, service, activity, person, place, organization or idea.
.
MARKETING:
The concept of markets finally brings us full circle to the concept of marketing. Marketing
means working with markets, which in turn means attempting to actualize potential exchanges
for the purpose of satisfying human needs and wants.

6
INTRODUCTION TO ELECTRONIC COMMERCE:
The consumer moves through the internet to the merchant's web site. From there, he decides that
he wants to purchase something, so he is moved to the online transaction server, where all of the
information he gives is encrypted. Once he has placed his order, the information moves through
a private gateway to a Processing Network, where the issuing and acquiring banks complete or
deny the transaction. This generally takes place in no more than 5-7 seconds. There are many
different payment systems available to accommodate the varied processing needs of merchants,
from those who have a few orders a day to those who process thousands of transactions daily.
With the addition of Secure Socket Layer technology, ecommerce is also a very safe way to
complete transactions. There are several basic steps involved in becoming Commerce Enabled.

Figure 1.1: Online Transaction Server

BACKGROUND:
The Global Information Infrastructure (GII), still in the early stages of its developing already
transforms our world. Over the next decade, advances on the Gil will affect almost every aspect
of daily life education, health care, work and leisure activities. Disparate populations, once
separated by distance and time, will experience these changes as part of a global community.
No single force embodies our electronic transformation more than the evolving medium known
as the Internet. Once a tool reserved for scientific and academic exchange, the Internet has

7
emerged as an appliance of everyday life, accessible from almost every point on the planet
Students across the world are discovering vast treasure of data via the World Wide Web. Doctors
are utilizing tele-medicine to administer off-site diagnoses to patients in need. Citizens of many
nations are finding additional outlets for personal and political expression. The Internet is being
used to reinvent government and reshape our lives and our communities in the process.
As the Internet empowers citizens and democratizes societies, it is also changing Classic
business and economic paradigms. New models of commercial interaction are developing as
businesses and consumers participate in the electronic marketplace and reap the resultant
benefits. Entrepreneurs are able to start new businesses more easily, with smaller up-front
investment requirements, by accessing the Internet's worldwide network of customers.

UNDERSTANDING E-BUSINESS:
The Internet was originally conceived as an elaborate military communications network that
would allow vital messages to be transmitted in the event of war. New technology emerged that
simplified use of the Internet and allowed the addition of multimedia content. This multimedia
environment of audio, visual, and text data came to be known as the World Wide Web or the
web. The Internet can be envisioned as a large network of computers connected by cables and
satellites, which pass small, standardized packets of electronic data along from one station to
another until they are delivered to their final destination. To transfer a variety of multimedia data
around the world, data need to be digitised, which means converted to a type of signal that the
computers and telecommunications equipment that make up the Internet can understand. Most
firms involved in e-business fall more or less into one of the three primary groups as defined by
their e-business activities: telecommunications and computer hardware manufacturers & I.S.P.s;
Internet software producers; & online sellers and content providers.

INTERNET SOFTWARE PRODUCERS:

The second primary groups of e-business firms that have emerged since the beginning of
commercial activity on the Internet comprise the software producers who provide the functional
capability to do things on the Internet.

8
Activities such as searching the Internet, browsing web sites, sending e-mail messages, shopping
online, and viewing multimedia content all require specialized software programs that allow
computers to function the way they do on the Internet.

ONLINE SELLERS AND CONTENT PROVIDERS:

The third primary group of e-business firms is made up of all the firms that customers actually
interact with on web sites. The Internet would still be limited to communication between
individuals and special interest groups of researchers if it were not for the activity of sellers and
content producers of products and services that populate the Internet.

GLOBAL E-BUSINESS:
All three primary groups of e-business firms are in a race to capture global business revenues
that are only now just emerging.

SMALL E-BUSINESS:
Although global-scale firms dominate e-business, the remarkable thing about the Internet is how
accessible it is to small businesses.
The relatively low barrier cost of entry to the Internet means that the door is open to thousands of
small businesses seeking opportunities for growth internationally.
In some cases, small firms have found a niche service or product to sell online.

FOUR CATEGORIES OF E-COMMERCE:

E-commerce can be defined as -Technology-mediated exchanges between parties as well as
electronically based infra- or inter-organizational activities that facilitate such exchanges.
Business to Business (B2B) refers to the full spectrum of e-commerce that can occur between
two organizations. This includes purchasing and procurement, supplier management, inventory
management, channel management, sales activities, payment management &service and support.
Examples: Free Markets, Dell and General Electric.
Business to Consumer (B2C) refers to exchanges between business and consumers like the ones
managed by Amazon Yahoo and Charles Schwab & Co. The activities tracked are consumer
search, frequently asked questions and service and support.

9
Consumer to Consumer (C2C) exchanges involve transactions between and among consumers.
These can include third party involvement, as in the case of the auction website E-bay.
Consumer to Business (C2B) involves when consumers band together to present themselves as a
buyer in-group.
INTERNET & E-COMMERCE AS MARKETING TOOL:
As we can see from definitions marketing, it is directed at satisfying needs & wants through
exchange process. And Internet & E-Commerce serve as a tool where Internet is medium of
Exchange and E-Commerce is process of exchange.
Through Internet world shrinks into a small cubicle and capture of market become matter of few
clicks of mouse. In the 21st century all the business and trade will be done through Internet. E-
Commerce provides a process of exchange which is very easy, reliable & quick. Here buyer &
seller meet virtually any transaction is completed. Internet serves as a permanent advertisement
of company or its product. And as large amount of data can be accessed on net at low costs,
therefore, it becomes cheapest source of activity.
The study of Internet and E-Commerce as marketing tool is very important because mostly
Internet and E-Commerce as not given their due credit and generally it is seen as just a tool of
data transfer or banking transaction etc.
No one had seen Internet as market, i.e. medium or place that has potential buyers of a product.
So very less number of companies in India are investing for this medium. Whereas, it is
cheapest market having a permanent address and available 24 hours: 365 days. Some, people
have apprehension that E-Commerce means only credit card payment, that also on net which is
very much prone fraud. But it is not so. There are various other means of payment such as D.D.,
cheque, direct transfer, online checks, payment on delivery etc., which are same as Mail order
business which is already established business. E-Commerce cant only be compliment to mail
order but complete substitute of this business. One can easily book his order on net and will get
delivery after payment is made through any of above method. Although Credit Card payment
results in immediate delivery but due to online frauds most people fear to tread on this path.
Also, as no, distributor or dealer or commission agent is involved in this market it results in
heavy discounts also.

10
PROMOTION OF BUSINESS THROUGH INTERNET:
Increasingly, Internet business promotion on the Internet has become a resource for business but
to be an effective resource it must be used in the proper. When opening any business or
storefront, it is important to attend to specifics. A business storefront or web site on the Internet
requires the same careful planning and attention ECP. Inc. will do all that can be done to be sure
your business gets on the Internet right way.
A company's home page is a representation of that business, so your we should look professional
and inviting as your physical storefront to be an effective. Internet promotion tool. Your web site
should convey the image of your business.
About those businesses or stores you have visited and were impressed with. If you list the characteristics
of such a business, you might say the inside was aesthetically pleasing, the service was helpful and
friendly and the products were easily accessible.
Any business owner knows that first impressions are important for a customer Internet business web site
is no different, A business on the Internet must also have the same characteristics established off the Net.
For a proper Internet business promotion your business home page should contain information about the
company itself, its products and the biggest growth of the Internet has come from companies and
individuals marketing and advertising products, services, and information on the Internet. The
Internet represents a low cost alternative to generating new business through direct marketing
programs.
Increased exposure for your business
Better customer service and communication
Announce a new product or test a new idea
Generate sales leads
Search engine optimization
Success Stories
The following Internet tools can be used to generate sales leads customized to your business;
E-books
Affiliate programs
Newsletters
Online opinion poles
Surveys
Auto-responders

11
 Referral programs
Custom-designed solutions

TRANSACTIONS AND PAYMENT METHODS:

E-commerce - always sells goods and/or services, other e-businesses don't necessarily sell
anything.
Methods of payment:
Cash.
Cheque.
Money orders.
Debit cards.
General credit cards.
Special (store) credit cards.
Wire transfer.
Through local phone companies.
Internet money.
Digital payment requirements;
Acceptability.
Anonymity.
Convertibility.
Efficiency.
Flexibility.
Integration with existing site and applications.
Reliability.
Scalability.
Security.
Usability.

12
 CHAPTER-2
REVIEW OF LITERATURE

Dr. AbhayUpadhayay (July 2013)According to Significant Success factors for E-Commerce

companies which recognized by Sung, there are customer relationship and privacy of
information, low cost operation, ease of use, E-Commerce strategy, methodological E-
Commerce expertise, immovability of systems, security of systems, prosperity of information,
variety of goods/services, speed of systems, payment process, services, delivery of
goods/services, low price of goods and services, and assessment of E-Commerce operations. Its
based on the theoretical model of consumer acceptance of the virtual stores proposed by Chen et
al. the Significant Success factors are product offerings, the usability of storefront, the perceived
service quality, and the perceived trust. For E-Commerce success, Turban et allotted the CAFs
which are the user-friendly of Web interface, delivery of specific and high-value services or
products, its support of top management and technical infrastructure, level of trust between
buyers and sellers, security and control of the E-Commerce system, the customer acceptance, the
mass customization, competition and the market situation, the optimization of scope of business,
and creating new partnerships and alliance.

Devendra ET. al., (2012) defined that electronic commerce, commonly known as e-commerce
or ecommerce, consists of the buying and selling of products or services over electronic system
such as internet and other computer network. Intent is the technology for e-commerce as it offers
easier ways to access companies and individuals at very low cost n order to carry out day-to-day
business transactions. Search engine marketing (SEM) is a form of web advertising that
companies use to promote their products and services on search engine results pages (SERPs).
SEM is focused on the effective use of search engine advertisements (a.k.a., sponsored results,
sponsored links) that appear on the SERP. SEM which allows firms to target consumers by
placing ads on search engines has proven to be an effective audience acquisition strategy. Unlike
traditional online advertising, advertisers pay only when users actually click on an ad when
successfully implemented, SEM can generate steady traffic levels and tremendous return on
investment (ROI).

13
Khan and Mahapatra (2009) remarked that technology plays a vital role in improving the
quality of services provided by the business units. One of the technologies which really brought
information revolution in the society is Internet Technology and is rightly regarded as the third
wave of revolution after agricultural and industrial revolution. The cutting edge for business
today is e-Commerce. The effects of e-commerce are already appearing in all areas of business,
from customer service to new product design. It facilitates new types of information based
business processes for reaching and interacting with customers like online advertising and
marketing, online order taking and online customer service etc. It can also reduce cost in
managing orders and interacting with a wide range of suppliers and trading partners, areas that
typically add significant overheads to the cost of products and services [Rajiv Rastogi].
Businesses are increasingly using the Internet for commercial activities. The ubiquitous nature of
the Internet and its wide global access has made it an extremely effective mode of
communication between businesses and customers [Rowley (2001)]. Thompson (2005)
introduced that the growth of Internet technology has enormous potential as it reduces the costs
of product and service delivery and extends geographical boundaries in bringing buyers and
sellers together.
Boughton (2005) remarked that most online advertising campaigns have two main objectives:
brand development and direct response. Selecting an appropriate marketing channel ultimately
depends on which strategies will provide the greatest ROI. Firms that offer products and services
through the Web clearly stand to gain from Internet advertising because their prospective
customers are already online. Non web-based companies may choose online marketing in order
to increase exposure and promote brand. SEM allows companies to closely track their ROI from
an audience acquisition standpoint. SEM delivers ads to users who are already searching for the
products or services that an advertiser is offering, meaning that theoretically, they are only
receiving qualified traffic. Unlike traditional banner ads, advertisers are charged based on the
number of clicks they receive, not on the number of impressions (number of times an ad
appears). Furthermore, many marketing campaigns place a great deal of importance on branding.
PPC ads can be very effective in terms of driving home a brand name because they appear
alongside search results for thousands of different search terms. SEM is a form of Internet
marketing that involves the promotion of websites by increasing their visibility in SERP through

14
optimization (both on-page and off-page) as well as through advertising (paid placements,
contextual advertising, and paid inclusions) [Search Engine Land 2007].

Rayport and Jaworski (2001) add to the confusion in the preface to their book with the
statement While many believe that Internet businesses do not have business models, we
strongly disagree. This statement suggests to the reader that firms can choose whether or not to
have a business model however it is apparent even from the diverse terminology used by other
authors that a business model, be it a method, an architecture, a path, a specification or a
description, exists for every firm; it is just a matter of articulating it.

E.W.T. Ngai (July 2000) Globalization and information technologies (IT) are radically changing
the face of business and organization. IT are being adopted and incorporated into nearly all
organizations, which have invested heavily in IT infrastructure for the overall success of their
business. There is a growing interest in the use of electronic commerce (EC) as a means to
perform business transactions. For many businesses, it has become a priority. Through using EC,
companies are able to connect with their trading partners for just in time production and just
in time delivery, which imp-proves their competitiveness globally. There is no Universal
accepted definition of EC.

15
 CHAPTER-3
RESEARCH METHODOLOGY

RATIONALE OF THE STUDY:

Users of Internet & E-Commerce are very fast increasing in India. Although increased usage of
Internet is global phenomenon but still, in India its usage as well as awareness is very little
compared to developed countries. How internet can be used as marketing tool and in turn
increase sales and productivity and also satisfy the needs and wants of consumers is main need
for the study of this topic.

Utility of Internet and E-Commerce to business as well as to users is not very widely known in
India. And still Rural & Semi-Urban India is largely unaware of its utility. As businesses are
generally reluctant to go online in India its usage should be highlighted in right manner to them.
Hence, this brings us to study of this topic: Internet & E-Commerce as Marketing tool and it
impact on India.

SCOPE OF THE STUDY:

The present study is restricted to analysis the Impact and other benefits of internet and E-
commerce. Future Prospects of E-Commerce in India to businesses should known so that they
and other organization can employ them effectively and use them for their and other users
benefit. For measuring the Internet & E-Commerce as Marketing tool and it impact on
India. Eighty (80) respondents have been taken from CDLU, Sirsa.

OBJECTIVES OF THE STUDY:

Main objective of Project Study is to bring out the utility & impact of Internet & E-Commerce to
businesses & other organization as marketing tool. But without establishing its user base to
businesses everyone will not like to go online.

To interact with users & business in India.

To bring satisfaction to them by liaisoning between all concerned.
To analyze the adequate information.
To analyze the usefulness to user & businesses, cost-saving features, and effectiveness of
Internet & E-Commerce it as major of at least effective tool of Marketing.
16
RESEARCH DESIGN:
Our study is exploratory as it emphasizes on idea & insight. It is descriptive as it describes the
feature of a problem. It is diagnostic as it strives to attain and add to knowledge. And also it is
experimental as through case studies it tries to know relation to the problem. But largely this
study is descriptive study as it most of time tries to describe and establish, Internet and E-
Commerce as Marketing tool.

SAMPLING DESIGN AND DATA COLLECTION:

SAMPLING TECHNIQUES:
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy of questionnaire. The final questionnaire was arrived
only after certain important changes were done. Thus my sampling came out to be judgmental
and continent.

SAMPLING SIZE:
The sample size was restricted to only 80 respondentshave been taken from CDLU, Sirsa.

DATA COLLECTION:
One of the most important stages in any research project is the data that is collected for the
research.
Data during the project is being collected from the following two sources:
Primary Sources
Secondary Sources

Primary Sources:
80 respondentshave been taken from CDLU, Sirsa.
Questionnaire

Secondary Sources:

Internet Survey.
Data collection through Internet.
Examination of Records.
Data through various Government agencies.
17
 Data through various Non-Government agencies. (Such as- C.I.I.,
N.A.S.S.C.O.M., and F.I.C.C.I etc.)

As our Research Design is Descriptive/Diagnostic it has following qualities:-

Overall Design: -It is rigid Design (Design must make enough provision for protection
against bias & must maximize reliability).
Sampling Design: -Probability sampling design (Random sampling).
Statistical Design: -Pre-Planned design for analysis.
Observational Design: -Structured or well thought out instrument for collection of data.
Operational Design: -Advanced decision about operational procedures.

SIGNIFICANCE OF THE STUDY:

The present study is helpful to knowthe biggest growth of the Internet has come from companies
and individuals marketing and advertising products, services, and information on the Internet.
The Internet represents a tow cost alternative to generating new business through direct
marketing programs. The advantages of using Internet are increased exposure for our business,
better customer service and communication, announce a new product or test a new idea, generate
sales leads, search engine optimization. The various modes of payment are discussed. E-business
requires a high level of Security so that both customers and vendors may have a high level of
trust that the electronic communications received are valid and not fraudulent. From an
organizational standpoint, there are technical & administrative (procedural) concerns: Hackers,
Industrial Espionage, Hi-Tech Criminals, Viruses, Denial of Service. Various security
requirements like Privacy, Authentication, Integrity, and Network Security are discussed.
Cryptography, WAP structures were also discussed in detail.

LIMITATION:-

Limitation of this Project Study is:-

As India is very big country there is different habits and tastes of the population.

General bias of the students to the distance education courses.

Population size is very big the only therefore sample survey may not be accurate.

Some individual (Users) will be reluctant to give some information.

18
 Data about its Impact on India has to be collected through various Government
organizations which may not be up to date.

Awareness of Internet & E-Commerce in India is very little in Rural & Semi-Urban areas
of India.

Facts & figures are changing very fast.

Businesses are reluctant to go online and do E-Commerce wary about its utility.

Similarly customers are also reluctant to use this mode as they are worried about payment
method and delivery of product.
Most of Internet users are not having credit-card which is most popular method of
payment for E-Commerce.

ORGANIZATION OF THE STUDY:

The present study is divided tentatively into following chapters:

Chapter-1: Introduction covers the introduction about the Internet & E-Commerce as
Marketing tool and it impact on Indiataken in this respect.

Chapter-2: Review of literature

Chapter-3: Research Methodology covers the rationale of the study, scope of study, objectives
of the study, sample profile and data collection, data analysis, organization of the study,
significance of the study and limitations of the study.
Chapter-4: Data Analysis covers the analysis of data collected from data sample.
Chapter-4: Summary of Suggestions and Conclusion intended to present the,suggestions, and
profound conclusions.

19
 CHAPTER - 4
DATA ANALYSIS

PROFILE OF RESPONDENT

1. Gender-wise distribution of the respondents

Table 4.1 shows that majority of the respondents 60 percent are male and 40 percent respondents
are female.
Table No- 4.1: Gender wise distribution of respondent
Sr. No Gender Frequency Percentage
1 Male 48 60
2 Female 32 40
3 Total 80 100
Source: Primary Data
Figure -4.1
Gender-wise distribution of the respondents

100
90
80
70
60
Frequency
50
Percentage
40
30
20
10
0
Male Female Total

20
2. Age-wise Distribution of Respondent
Table 4.2 shows that 50 percent respondent belongs to age-group of 18-25,30 percent belongs to
age-group of 26-35 and 18.75 percent belongsto age-group of 36-45 while 1.25 percent belongs
to age-group of above 45 years.
Table No-4.2: Age-wise Distribution of Respondent
Sr. No Age (In Years) Frequency Percentage
1 18 to 25 40 50
2 26 to 35 24 30
3 36 to 45 15 18.75
4 Above 45 1 1.25
5
Total 80 100
Source: Primary Data
Figure -4.2
Age-wise Distribution of Respondent

100

90
80

70

60
Frequency
50
Percentage
40
30

20

10
0
18 to 25 26 to 35 36 to 45 Above 45 Total

21
3. Educational qualification of the respondent.
Table -4.3 Shows that 23.75percent respondent had their educational qualification up to
secondary level, 21.25 percent respondent had their educational qualification up to higher
secondary level, and 42.50 percent respondent had their educational qualification up to
graduation level while 12.50 percent respondent had their educational qualification up to post
graduate level. Further, it can say majority of the respondents are from higher education.

Table No-4.3: Educational qualification of the respondent.

Sr.No. Education Frequency Percentage
1 Secondary 19 23.75
2 Higher Secondary 17 21.25
3 Graduate 34 42.50
4 Post Graduate 10 12.50
5 Total 80 100
Source: Primary Data
Figure-4.3
Educational qualification of the respondent.

100
90
80
70
60
50 Frequency

40 Percentage

30
20
10
0
Secondary Higher Graduate Post Graduate Total
Secondary

22
4. Usage of Computer and internet of the respondent.
Table 4.4 Shows that 72.05 percent respondent are use computer and reaming are not using the
computer , as well as 82.50 percent respondents are using internet services for the E-commerce
and other benefits.
Table No-4.4:Usage of Computer and internet of the respondent.
Sr.No. User Frequency Percentage
Yes No Yes No
1 Computer 58 22 72.50 27.50
2 Internet 66 14 82.50 17.50
3 Total 80 100
Source: Primary Data
Figure-4.4
Usage of Computer and internet of the respondent.

100
90
80
70
60
Yes
50 No
40
30
20
10
0
Computer Internet Total

23
5. Mostly used Search engine by the respondent.
Table 4.5 Shows that 78.75 respondents are using Google and remaining are using other search
engine, so here we conclude that most of the respondents are aware about the Google service.
Table No-4.5:Mostly used Search engine by the respondent.
Sr.No. User Frequency Percentage
1 Yahoo! 09 11.25
2 Google 63 78.75
3 Bing 05 6.25
4 MSN 03 3.75
45 Total 80 100
Source: Primary Data
Figure-4.5
Mostly used Search engine by the respondent.

100
90
80

70
60
Frequency
50
Percentage
40
30
20
10

0
Yahoo! Google Bing MSN Total

24
6. Electronic gadget is used by respondent for E-Commerce transactions.
Table4.6 Shows those 47.50 percent respondents are using smart phones and laptop for E-
transactions, so here we conclude that most of the respondents are aware from the benefits and
impact of the internet and E-commerce.
Table No-4.6: Electronic gadget is used by respondent for E-Commerce transactions.
Sr.No. User Frequency Percentage
1 PC/Laptop 18 22.50
2 Smart phones 21 26.25
3 Both A & B 38 47.50
4 other 03 3.75
45 Total 80 100
Source: Primary Data
Figure-4.6
Table No-4.6: Electronic gadget is used by respondent for E-Commerce transactions.

100

90
80

70
60
Frequency
50
Percentage
40
30
20
10

0
PC/Laptop Smart phones Both A & B other Total

25
7. Response regarding the University and government sites and their benefits in
advertisement by the respondent.

Table No-4.7
Sr.No. User Frequency Percentage
Yes No Yes No
1 Visit Government ,university, E-commerce sites 63 17 78.75 21.25
2 Internet helps in advertisement 49 31 61.25 38.75
3 Total 80 100
Source: Primary Data 100

Figure-4.7
Response regarding the University and government sites and their benefits in
advertisement by the respondent.

100
90
80
70
60
50 Yes
40 No
30
20
10
0
Visit Government Internet helps in Total
,university, E-commerce advertisement
sites

26
8. Purchase decision regarding product /service by therespondent.

Table No-4.8:Purchase decision regarding product /service by therespondent.

Sr.No. User Frequency Percentage
Yes No Yes No
1 Internet 41 39 51.25 48.75
2 Other 39 41 48.75 51.25
3 Total 80 100
Source: Primary Data
Figure-4.8
Purchase decision regarding product /service by therespondent.

100
90
80
70
60
Yes
50 No
40
30
20
10
0
Internet Other Total

27
9. Mode of the payment by therespondent.

Table No-4.9: Mode of the payment by therespondent.

Sr.No. User Frequency Percentage
1 Credit Card/Debit 25 31.25
2 card
Check 18 25
3 Cash on delivery 32 40
4 other 05 6.25
45 Total 80 100
Source: Primary Data
Figure-4.9
Table No-4.9: Mode of the payment by therespondent.

100
90
80
70
60
50 FrequencyPercentage
40 Series 2
30
20
10
0
Credit Check Cash on other Total
Card/Debit delivery
card

28
TARGET MARKETING:

In target marketing only a particular segment is targeted for the purpose of Marketing. As we
can see from table, a particular segment i.e. below 30 years old can be easily targeted. Similarly,
Internet Users itself is a particular segment. Also, certain commodities which have repeat
customers and where direct selling will bring discounts such as Airline ticket by Air- Deccan,
this target marketing can be used as marketing method by help of Internet.

PURCHASING TYPES AND EXPERIENCES:

Consumers can be categorized into three types: Impulsive buyers, who purchase products
quickly; patient buyers, who purchase products after making some comparisons; and analytical
buyers, who do substantial research before making the decision to purchase products or services.
Also, there are window shoppers, who just browse.

CONSUMERPURCHASINGDECISIONMAKING:

We return again to E-Commerce Consumer Behavior Model, the central part that determines
consumers' decision making is the purchasing decision process. Before we discuss this topic, it is
necessary to clarify the role people play in the decision-making process. The major roles are as
follows:

Initiator the person who first suggests or Thinks of the idea of buying a particular product
or service
Influencer: a person whose advice or views carry some weight in making 'a final buying
decision
Decider: the person who ultimately makes a buying decision or any part of it whether to
buy, what to buy, how to buy, or where to buy.
Buyer: the person who makes an actual purchase
User: the person who consumes or uses a product or service

29
ADVANTAGEINDIA:

Strong cost
quality value proposition
English Speaking skilled manpower
Large number of SEI CMM
Level 5 companies
High Reliability
Customer service
Financial status
Experience of managing big projects
Active Indian Government support
Vast base of Fortune 500 companies
About 190 Fortune 500 companies outsource from India
Strong Cyber law regime

INTERNET SURVEY:

Another survey on Internet has been done. Internet survey has been done, mainly to know
purchasing habit of Internet users. It has been found from counter on site that 100 persons
visited Magazine site. Over a period of 10 days, 50 of them participate in survey and around 25
accepted to make purchase.

30
 CHAPTER - 5
FINDINGS, CONCLUSION AND SUGGESTIONS

FINDINGS
GROWTH PREDICTIONS (2015) FOR I.T IN INDIA:
I.T & ITES to employ 3.2 mn people with revenues close to $ 119 billion.
I.T exports to grow to $ 55 billon employing 9, 72,000 personals.
Biggest growth In consulting, Integration& installation with { 24 billion In
Revenues employing 2, 74,000 personals.
I.T development exports to clock $10 billion employing 1, 11,000 personals.
I.T.E.S exports will rise to $ 64 billion employing 22, 32,000 personals.
I.T.E.S customer care business to grow to $22 billion employing 10, 03,000 personals.

ADVANTAGES OF ELECTRONIC CATALOGS:

Expand your market.
Reach niche markets around the world.
Gain competitive advantage.
Save on printing and distribution costs.
Minimize costs for catalog printing and updates.
Avoid rising postage costs.
Satisfy your customers.
Customers seek convenience.

MAIN FINDINGS:

There has been a strong urban bias in the pattern of Growth of Internet & E-Commerce.

High degree of caution is noticed in certain age groups which are reluctant to purchase on
Internet.

There has been a gradual & consistent rise in the growth of Internet & E-Commerce from
1991 onwards in India.

31
 Growth of E-Commerce is in certain sectors only. Generally people purchase items if they
get either discounts or commodity is not easily available in open market. (By observation
method)

Urban bias in the structural growth i.e., infrastructure, Internet hosts, I.S.Ps etc. in India is
very much pronounced. Five cities accounts for nearly 70% of I.T. Business.

Volume of business for Indian I.S.P.s has been very slow with few big companies
accounting for all majorities of subscribers.

For Example: - B.S.N.L. & M.T.N.L. has large no. of subscriber. Similarly Airtel-
Broadband, D.S.L., Satyam, Infosys, etc. together account for almost all subscribers.

The emerging structure of I.T. industry shows that there will be accentuation of regional
imbalance. And in future imbalance will increase more. As certain states are not at all
getting investment in this field.

The mean firm size in terms of Users and numbers of hours going online and also number of
purchases has tended to have a gradual rise.

The share of bigger firms tends to fall, which implies that industry is tending to become
competitive.

Pattern of Internet usage shows it is high in day time and low in night time and mostly it is
used for data transfer.

Several Government Department are also giving e-Governance by going online.

Payment method is most significant factor determining the item will be purchased or not.

Margin of profit is decreasing for E-Commerce sites but volume is continuously increasing.

Males appear to more bending to purchase compared to females. Similarly, people below 30
years and more prone to purchase on E-Commerce site than above 30 years.

32
 SUGGESTIONS

BROAD SUGGESTIONS:

(a) FOR INDIVIDUAL FIRMS:

E-Commerce is not a field where one can drift. It is not just another mode of doing business. The
sponsor should be genuinely committed. Each start-up should control its own destiny by effectively
positioning site among other site.

(b) FOR ESTABLISHED INDISTRIES:

Firms should keep on updating their sites.

As it can be source of foreign exchange earning it should be given top priority and should
be treated as export industry.
Companies should employ latest technologies.
Types of products should be increased and under usage of E-Commerce Web-Site should
be avoided.
Future demand should be properly taken care of.
They should employ skilled staff.
(c) FOR GOVERNMENT:
Adequate loan facilities should be provided by the government to this industry.
Tax holiday benefits should be provided.
Electricity and other infrastructure facilities should be made available at concessional
rates.
Various licensing conditions should be relaxed.
Sufficient land at concessional rate should be provided.
Import/Export license should be made available to them.
There should be relaxation in prohibition rules.
Most users are from a budget user of Internet in India. Government should take measures
to regulate tariffs.
Government should give special incentive to this sector.
Government should give training and proper guidance to compete in International
Market.

33
FINDINGS OF INTERNET SURVEY:

It can be assumed from internet survey that 51% of people are willing to make purchase which
established its usage as E-Commerce site. Although no product has been offered.

Every E-Commerce site should have facility to accept Credit-Cards. By which sales increases to
at least 50%. But provision to make it secure should be made. But in India unlike other
countries, other medium of payment are more popular. Such as credit card/ debit card, Cheque,
V.P.P., Payment on Delivery etc.

CONCLUSION

CONCLUSION:

The integration of electronic commerce and marketing should bring with it a renaissance of
advertising, sales and marketing functions as it presents an opportunity to get close to the
customer, to bring the customer inside the company, to explore new product ideas and pretest
them against real customers.

In short, the paramount scope of the company - including all the attributes that concurrently
define how the company does business- becomes the function of marketing.

Today consumers are fairly passive. That will change very slowly, as consumers need to be
educated and behavior has to be modified to adjust to electronic commerce. It's important to be
forward-looking, as marketing communications have become more complex and interesting.
Business professionals have to be ahead of their customers and make sure they have the answers
to questions when clients pose them.

34
 BIBLIOGRAPHY

Philip Kotler, Marketing Management, Analysis, Planning and Control, Prentice- Hall of
India Private Ltd., New Delhi-1982.
PragatiMohanty, Hotel Industry and Tourism in India, Ashish Publishing House, New
Delhi-26, 1992.
C.R. Kothari, Research Methodology, Method & Techniques, WishwaPrakashan, New
Delhi, 2003.
Study Materials, Web Designing and its Applications, cdlu, sirsa.
Study Materials, E- Commerce and its Applications, cdlu, sirsa.
Study Materials, M.C.A., I.G.N.O.U., New Delhi.
Encyclopedia Britannica, 2001 Edition, Britannica India Pvt. Ltd., U.S.A..
Kulkarni, Product Manager: http://yourstory.in/2013/01/indian-e-commerce-what-does-
the-future-look-like/.

Avery, S. Online tool removes costs from process. Purchasing, vol. 123, no. 6, (1997),
pp. 79-81.
S. B. Boughton, Search engine Marketing, Bart Boughton was a student in the MBA
program in the School of Management and Business at St. Edwards University, (2005).
H. Bell and N. K. H. Tang, The effectiveness of commercial Internet websites: a users
perspective, Internet Research: Electronic Networking Applications and Policy, vol. 8,
no. 3, (1998), pp. 219-228.
J. Bernard and S. Simone, Bidding on the buying funnel for sponsored search and
keyword advertising, Journal of Electronic Commerce Research, vol. 12, no. 1, (2011),
pp. 1-18.
A. Day, A model of monitoring Web site effectiveness, Internet Research: Electronic
Networking Applications and Policy, vol. 7, no. 2, (1997), pp. 109-115.
D. Agrawal, R. P. Agrawal, J. B. Singh and S. P. Tripathi, E-commerce: True Indian
Picture, Journal of Advances in IT, vol. 3, no. 4, (2012), pp. 250-257.
N. Edwards, S. Handcock and J. Mullen, Electronic commerce: reality bytes, Supply
Management, vol. 3, no. 8, (1997), pp. 32-34.

35
 D. C. Fain and J. O. Pedersen, Sponsored Search: A Brief History, Bulletin of the
American Society for Information Science and Technology, vol. 32, no. 2, (2006), pp. 12-
13.
F. J. M. Gonzalez and T. M. B. Palacios, Quantitative evaluation of commercial
websites: an empirical study of Spanish firms, International Journal of Information
Management, geocart.com:http://www/geocart.com/online-business-success.asp, vol. 24,
no. 4, (2004), pp. 313-328.
H.-T. Chang and S. Wu, A Switching Proxy for Web Search Engines. Advanced in
Information Sciences and Service Sciences, Advanced Institute of Convergence
Information Technology, vol. 3, no. 5, (2011), pp. 52.
IProspect, Information on http://www.iprospect.com/search-engine-marketing-
university/, (2008).
B. J. Jansen and T. Mullen, Sponsored search: An overview of the concept, history, and
technology, International Journal of Electronic Business, vol. 6, no. 2, (2008), pp. 114-
131.
U. Karoor, E-commerce in India: Early Bards expensive worms, Consumer and
shopper insights, (2012).
A. Kesharwani and R. Tiwari, Exploration of Internet Banking Website Quality in India:
A Webqual Approach, Great Lakes Herald, vol. 5, no. 1, (2011), pp. 40-58.
S. E. Kim, T. Shaw and H. Schneider, Web site design benchmarking within industry
groups, Internet Research, vol. 13, no. 1, (2003), pp. 17-26.
M. S. Khan and S. S. Mahapatra, Service quality evaluation in internet banking: an
empirical study in India, Int. J. Indian Culture and Business Management, vol. 2, no. 1,
(2009), pp. 30-46.
T. Lamoureux, IS goes shopping on the web, Computerworld, vol. 31, no. 46, (1997),
pp. 106.
L.-H. Ho, M.-H. Lu, C.-P. Lee and T.-F. Peng, Exploration of Search Engine
Optimization Technology Applied in, Internet Marketing, Advances in Information
Sciences and Service Sciences, vol. 3, no. 7, (2011).

36
 P. Malhotra and B. Singh, Determinants of internet banking adoption by banks in India,
Internet Research, vol. 17, no. 3, (2007), pp. 323-339.
B. A. S. Martin, J. Van Durme, M. Raulas and M. Merisavo, E-mail Marketing:
Exploratory Insights from Finland, Journal of Advertising Research, vol. 43, no. 3,
(2003), pp. 293-300.
M. Y. Kiang and R. T. Chi, A framework for analyzing the potential benefits of internet
marketing, Journal of Electronic Commerce Research, vol. 2, no. 4, (2001), pp. 157-163.
R. Rastogi, Country Report on E-Commerce (India, Ministry of Communications and
Information Technology, Department of Information Technology, Office of the
Controller of Certifying Authorities), pp. 133-146.
J. Rowley, Remodeling marketing communications in an Internet environment, Internet
Research, Electronic Networking: Applications and Policy, vol. 11, no. 3, (2001), pp.
203-212.
R. R. Rickman, http://www.imgrind.com/10-advantages-of-internet-marketing/10
Advantages Of Internet Marketing, (2012) January 19.
SEMPO Research, The State of Search Engine Marketing 2008 Survey of Advertisers
and Agencies Search Engine Marketing Professional Organization, SEMPO, February,
Search Engine Marketing Professional Organization, (2009).

37