A Study on Effectiveness of E-Marketing with Reference to Consumer Goods

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EMPEROR INTERNATIONAL JOURNAL OF

FINANCE AND MANAGEMENT RESEARCH

[EIJFMR]

ISSN : 2395-5929

Founder | Publisher | Editor Dr. R. MAYAKKANNAN,

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H.H.The Rajah’s College (Autonomous), Pudukkottai, Tamilnadu.

Volume-II Issue-08 August- 2017

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45/5, Unathur & Post, Attur Tk., Salem Dt. Tamilnadu, India – 636112

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Emperor International Journal of Finance And Management Research [EIJFMR] ISSN: 2395-5929

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A STUDY ON EFFECTIVENESS OF E-MARKETING WITH REFERENCE TO

CONSUMER GOODS

Dr. E. JOHN SURYA KUMAR Associate Professor of Commerce, Madras Christian College, Tambaram-59

Mr. M.SRINIVASAN

Ph.D. Full Time, Department of Commerce Madras Christian College, Tambaram-59

Abstract

Electronic commerce, commonly known

as e-commerce is a type of industry, where

buying and selling of products or services

are conducted over electronic systems such

as the internet and other computer

networks. Electronic commerce draws on

technologies such as mobile commerce,

electronic funds transfer, supply chain

management, internet marketing, online

transaction processing, electronic data

interchange (EDI), inventory management

systems and automated data collection

systems.

Modern electronic commerce typically

uses the World Wide Web at least at one

point in the transaction‟s lifecycle,

although it may encompass a wider range

of technologies such as e-mail, mobile

devices, social media and telephones as

well. Therefore, it can be attributed that

electronic commerce is generally

considered to be the sales aspect of

e-business. It also consists of the exchange

of data to facilitate the financing and

payment aspects of business transactions.

This study focus on effectiveness of

purchase on consumer goods towards

E-Market finding facility and strength of

online purchasing and having potential

sources of using online purchase.

Key words: E-Market, Effectiveness,

Consumer goods.

Introduction:

The web is the ultimate customer

empowering environment and it enables

one to click the mouse to decide

everything. „It is so easy to search for

opportunities where all the business

competitors offering goods and services in

the world are instantly known,‟ is quoted

by Jacob Nielson on how the web forms an

integral part of E-Commerce.

The above phenomenon is aptly defined by

S. Jaiswal as “electronic commerce is the

business environment in which

information for the buying, selling and

transportation of goods and services moves

electronically.” E-commerce is cost

effective when compared to traditional

commerce. In traditional commerce cost

has to be incurred for the middle men

services, but in e-commerce it is

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the seller and the customer. It takes a lot of

time to complete a transaction in

traditional commerce. But in e-commerce

a product can be ordered and a transaction

can be completed in few minutes through

internet. In traditional commerce business

is open only for a limited time. But in

e-commerce round the clock (24X7) service

is available.

In traditional commerce, it is possible to

expand from regional markets to national

market but, only by incurring huge

expenses. But, in e-commerce it is easy to

expand from regional to global markets by

hosting a website, advertising in the

website and conducting sales. In traditional

commerce it takes a lot of time and money

to introduce a new product and analyse the

response of the customers.

Classification of e-commerce:  Business-to-Business Electronic

Commerce (B2B)

 Business-to-consumer Electronic

Commerce (B2C)

 Consumer-to Business Electronic

Commerce (C2B)

 Consumer-to-Consumer Electronic

commerce (C2C)

 Business-to-employee (B2E) Services

 Business to Government e-commerce

(B2G)

Statement of the problem:

Traditional marketers gained the trust of

the customers through quality products,

service, ethical conduct and

trustworthiness. It is assumed that the

companies will stand behind their products

and provide services that customers have

become accustomed to receiving through

traditional transactions. In addition,

consumers know that these are “real businesses” with brick and mortar stores to

back up the business.

 Therefore, this study tries to examine these and other related issues through

the following objectives.

Objectives of the study:

 To identify, measure and evaluate the

e-marketing of consumer goods

through electronic media.

 To analyse online buying behaviour

based on demographic features like

age, sex, income, qualification, life

stage etc.

 To identify consumer perceptions on

website features and consumer

satisfaction levels.

Need for the study:

The present study analyses e-marketing

experiences of online buyers of consumer

goods. Technological changes have given

rise to a new society based on knowledge

and they have also created new avenues of

development, employment, investment and

entertainment. Internet is emerging as a

powerful medium to reach the masses. It

has gained global dimension by acting as a

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emerged as the biggest market place in the

last few years. Prospective buyers

generally browse through the internet

when in need of something or when they

want more details of something. The

volume of internet transactions is

increasing every day.

Hence it is imperative to study the factors

that influence online buying of consumer

goods and understand consumer

psychology to adopt better marketing

strategies.

Scope of the study:

The present study is focused on

effectiveness of e-marketing with

reference to consumer goods. The study

concentrates on online buying experience

which is a part of e-marketing. This study

brings out certain factors which influence

online buying. The key factors which are

identified are website features, consumer

satisfaction and online buying experience

of consumers. The present study is

undertaken primarily to understand the

consumer perceptions on online buying

with regards to the above variables.

Hypotheses of the study:

The important hypotheses in the study are:

1. H0: Age is not a significant factor that

affects the perceptions of consumers

on website features.

H1: Age is a significant factor that affects

the perceptions of consumers on website

features.

2. H0: Education does not have a

significant impact on the perceptions

of consumers regarding the website

features.

H1: Education has a significant impact on

the perceptions of consumers regarding the

website features.

3. H0: Age does influence the level of

consumer satisfaction while buying

goods online. H1: Age influences the

level of consumer satisfaction while

buying goods online.

Methodology of research:

Survey method through structured

questionnaire was adopted for the study, as

it attempts to evaluate the perceptions of

online customers buying behaviour.

Data collection procedure:

The study is mainly based on primary and

secondary data. The primary data was

collected through distribution of

questionnaires to 450 people. Published

information from journals, articles,

newsletters and websites were used for

secondary data. Questionnaires were

distributed only to people who were

comfortable with computers and bought

some goods online at least a few times. It

was distributed to students, professionals;

people employed in I.T. sector,

housewives and retired people residing

mainly in Chennai.

This has brought in tremendous change in

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markets in these cities are big enough for

everybody to co-exist. Hence, both

traditional physical stores and online stores

are having a great impact on the

consumers which prompted the selection

of area of survey.

Sampling method:

Convenience sampling method was

adopted taking into account availability

and approachability of the consumers for

the purpose of data collection. Since the

concept of online buying is new to India,

there are no readymade lists of online

buyers. Hence, non-random sampling

method has been used to collect data.

Limitations of the study:

 The main objective of the study is to

identify measure and evaluate the

e-marketing of consumer goods through

electronic media. Since marketing is a

wider area, the study is restricted to

online buying only.

 There are many variables that

influence online buying. But the study

is confined to three important select

variables only.

 As online buying is a emerging

concept, the questionnaires were

distributed only to consumers familiar

with online buying. Therefore non

random method of sampling was used

in this study for data collection.

Analysis of Demographic Characteristics of the Respondents Demographic profile of the

Consumers

Gender * Qualification Cross tabulation

Qualification

Others P.G Professional U.G Total

Gender Female 29 87 49 52 217

Male 40 83 51 58 233

Total 69 170 100 110 450

Classification according Gender

Frequency Percent Valid Percent Cumulative Percent

Valid

Female 217 48.2 48.2 48.2

Male 233 51.8 51.8 100.0

Total 450 100.0 100.0

Classification according Qualification

Valid

1 .2 .2 .2

Others 69 15.3 15.3 15.6

P.G 170 37.8 37.8 53.3

Professional 100 22.2 22.2 75.6

U.G 110 24.4 24.4 100.0

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Classification according Type of Customers

Valid

Business 51 11.3 11.3 11.3

House wife 31 6.9 6.9 18.2

Professional 71 15.8 15.8 34.0

Retired 16 3.6 3.6 37.6

Salaried 174 38.7 38.7 76.2

Student 107 23.8 23.8 100.0

Total 450 100.0 100.0

Classification according Married

Valid

Married 259 57.6 57.6 57.6

Single 191 42.4 42.4 100.0

Total 450 100.0 100.0

Classification according Age

Valid

31-40 91 20.2 20.2 20.2

41-50 130 28.9 28.9 49.1

Below 30 157 34.9 34.9 84.0

more than 50 72 16.0 16.0 100.0

Total 450 100.0 100.0

Important demographic characteristics

based on the sample survey of consumers

as shown in the above table are presented

below:

 Sample population shows that 48.2%

are males and 51.2% are females. It

reveals that more males do net

browsing and online shopping than

females.

 Sample analysis also reveals that

34.9% of the sample populations are

below 30 years of age, 20.2% are

between 31-40 years of age and 28.9%

are between 41-50 years of age and

16% are above 50 years of age. From

this, we can infer that youngsters are

more comfortable with internet and

online shopping.

 As per the survey 57.6% are married

and 42.4% are single. It shows marital

status does not have any significant

impact on browsing the internet and

purchasing goods online.

 38.7% of the respondents are salaried

class, 23.8% are students, 15.8% are

professionals, 11.3% belong to

business class, 6.9% are housewives

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salaried class forms the highest

percentage (38.7%) which may be due

to their economic independence.

 37.8% of the respondents are post

graduates, 24.2% are graduates, 22.2%

are professionals and 15.3% are others.

This shows education has an impact on

the usage of net. Only post graduates‟

people are able to operate the

computers.

Reasons for purchasing the products

online

Rank preferences indicated by the

respondent online shopper on various

reasons for purchases are given in the

following table.

S.No Reasons No.of respondents assigning first rank

Rank

1 Security 59 2

2 Ease of usage 37 4

3 Speed/saving of time 61 1

4 Reliability 17 8

5 Deals offered by the co. 50 3

6 Gathering information 27 5

7 Wide range 13 10

8 Easy payment mechanism 19 6.5

9 Quick delivery of products 15 9

10 Access to Global markets 19 6.5

Source: Primary data

The respondents‟ most preferred reason for buying products online is speed which results in saving of time. Time saving is one of the prime benefits of online Shopping. The duration of selecting, buying and paying for an online product may not take more than 15 minutes. The products are delivered at customers‟ door steps within a week. It saves delivery time for the buyers. Internet shopping is definitely a boon. One can sit comfortably at home, select the item and get it delivered at home. It saves time on travelling and even fuel cost which is expensive for regular shopping.

Analysis of Demographic Characteristics and Appeal of Website Features

To understand the significant differences in the perceptions of respondents, if any, with regard to influence of demographic characteristics of sample population on website features, the following ANOVA tables are prepared to find out the differences in perceptions of respondents regarding the variables taken for the study.

ANOVA Table showing the gender and website features

Particulars Mean ‘T’ Value ‘P’ Value Level of significance

Male

Female

75.2674

75.8005

0.075 0.784 Not significant

Source: Primary data** Significant @1% level, *Significant @5% level.

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male or female view the characteristics of web site features uniformly. Both of them have high positive attitude towards the features of web sites which can be inferred from high mean scores. This could be because without is crimination, both males and females are equally exposed to computer operations and they are aware of the quality of the websites.

However, the present study confirms the earlier studies that there is no significant difference in the perceptions of the respondents towards website features when classified on gender basis.

ANOVA table showing the age and website features Hypothesis

H0 Age does not affect the perceptions of consumers on website features. H1 Age affects the perceptions of consumers on website features

Below 30 yrs 31-40 yrs 41-50 yrs Above 50 yrs

74.9830 76.9559 76.6667 13.5985

2.054 0.000*** Significant

Source Primary data** Significant @1% level, *Significant @5% level.

ANOVA results reveal that there is a significant difference in the perceptions of online buyer respondents, when analyzed on the basis of age classification. Online buyers in the age group 31 – 40 yrs seem to show higher appreciation of appealing websites than other age group of respondents. The above table reveals that there is high level of mean values with regard to perceptions of customers towards web site features based on age. However, people above 50 years of age have lesser level of perceptions regarding web site features due to low mean scores. Thus, null hypothesis is rejected and there is a significant relationship between age and perceptions of consumers on website features. This could be due to the fact that

Older people are not comfortable with web browsing.

ANOVA table showing the marital status and web site features

Single

Married

74.9163

76.000

1.140 0.287 Significant

Source Primary data** Significant @1% level, *Significant @5% level.

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ANOVA table showing the life stage of the consumers and web sites features

Particulars Mean ‘T’ Value ‘P’ Value Level of significance

Young and dependent Young and independent Less young & independent Family with children @ home Empty nesters/Retied

75.0047 74.4789 75.5844 76.8842 65.000

1.840 0.002** Significant

Source: Primary data** Significant @1% level, *Significant @5% level

The above table explains that there is a significant difference in the perceptions of respondents towards web site features depending on their life stage. People with family and children have a high degree of positive perception towards web site features which can be seen by their highest mean scores. This can be due to the fact that other family members and children exert a positive influence in the usage of web sites. Respondents who are young and dependent, young and independent, less young and independent also have a high perception towards website design, speed, usage etc which can be seen by their high mean scores. But, retired people and empty nesters perception towards website features is very low. This may be due to the fact they are less adept to the usage of net. The elderly are commonly depicted as technophobic.

ANOVA table showing the educational qualification and website features Hypothesis

H0 Education does not have a significant impact on the perception of consumers regarding website features.

H1 Education has a significant impact on the perception of consumers regarding website features.

UG PG

Professional Others

74.6066 76.3491 74.8427 77.6033

2.301 0.000** Significant

Source: Primary data** Significant @1% level, *Significant @5% level.

There is a high degree of significant

difference in the perceptions of

respondents towards web site features

based on their educational qualifications.

The higher their educational qualification

the higher is their positive perception

towards the design, usage and security of

the web sites. This could be seen by their

high mean scores. Therefore, the null

hypothesis is rejected and it could be

concluded that there is a strong link

between education and perception of

consumers regarding website features.

Summary of Findings, Suggestion &

Conclusions

The main findings of the study are

summarised as follows:

 Sample population shows that 48.2%

are males and 51.2% are females. It

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browsing and online shopping than

females.

 Sample analysis also reveals that

34.9% of the sample populations are

below 30 years of age, 20.2% are

between 31-40 years of age and 28.9%

are between 41-50 years of age and

16% are above 50 years of age. From

this, we can infer that youngsters are

more comfortable with internet and

online shopping.

 As per the survey 57.6% are married

and 42.4% are single. It shows marital

status does not have any significant

impact on browsing the internet and

purchasing goods online.

 38.7% of the respondents are salaried

class, 23.8% are students, 15.8% are

professionals, 11.3% belong to

business class, 6.9% are housewives

and 3.6 % are retired people. The

salaried class forms the highest

percentage (38.7%) which may be due

to their economic independence.

 37.8% of the respondents are post

graduates, 24.2% are graduates, 22.2%

are professionals and 15.3% are others.

This shows education has an impact on

the usage of net. Only post graduates‟

people are able to operate the

computers.

 60% of the respondents do not

completely rely on the information

given in the net. They make enquiries

with their friends or visit physical

stores to verify the details and then buy

the goods online.

 The sample population do not

significantly differ in their perceptions

towards online buying experience

when classified on gender basis. Males

have a better experience than females.

Men lay more emphasis on hassle free

purchases in the comfort of their

homes or workplaces and mind less on

the hedonistic benefits of store

shopping.

Online security is a huge barrier to online

retailing. Customers often worry about

theft of their personal information. The

above problem is reflected in the present

study, where respondents have assigned

the last but one rank for the variable

security.

Suggestions:

 Traditional Indian population is not

excited about choosing internet as a

medium of shopping. Therefore, it is

imperative for internet retailers to

formulate their marketing strategies in

generating attractive retail websites so

that despite the Indian habits, Indians

are still tempted to buy online.

 Fear of cyber crime is the biggest

challenge to e-commerce adoption in

India. Though many security measures

are employed when using credit or

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still consumers have their own

inhibitions about fraudulent cyber

activities. Therefore, credit card

companies should develop improved

security programmes updating with the

global technology to gain consumer‟s

confidence.

 Online consumers are worried about

the privacy of the data. They are scared

that their personal and financial

information will be stolen. Therefore it

is important that both technological

and legal tools should be used to

enhance the security of e-commerce. It

becomes necessary for an internet

retailer to guarantee secured online

transactions.

 Since online buying does not allow

customers to touch, feel, smell or taste

the products before buying the retailers

should have liberal return policies, if

the online customers are dissatisfied

with the product. This would improve

the online sales.

Scope for Future Research

Based on the findings of the present study,

the following suggestions are made for the

purpose of future research in this area:

The study could be based on a larger

sample and the samples could be drawn

from other big cities and extended to two

tier cities also. It is also suggested that a

comparative study be made between online

marketing in India with other countries.

The regulation mechanism of online

marketing could be explored. Specific

issues in online marketing like privacy and

security needs are to be examined in

greater detail. Grievances and redressal

area can be dealt with in detail. Legal and

ethical issues can be examined. The

analysis of the social impact of computer

technology and the corresponding

formulation and justification of policies for

the ethical use of such technology needs to

be explored.

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