A study on Project Research on Analyzing traditional Stores with online stores on the grounds of Cost of Selling

The project is a part of fulfillment for the degree of SEM IV BBA requirement of Times Business school, Vashi, Navi Mumbai

BY- Sanjay Bhosale Rohit Umrao Kishan ShindeBy BBA SEM IV 2014

Name of the Project instructor- Ms. Tridisha Hazarika

DECLARATION

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

Sanjay Bhosale Rohit Umrao Kishan Shinde

Acknowledgement

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

Table of contents:1.Chapter 1 Introduction.... 52.Chapter 2 Methodology..133.Research and analysis.174.Discussion...255.limitations...26 6.Constraints......277.Future Scope...288.Conclusion..29 9.Biblography.31

CHAPTER: 1 INTRODUCTION

We know that the advent of some new technologies has totally devastated some old business. Thats the reason it is rightly said by someone that a Manager of a business should keep a close eye on what is going on in his/her surrounding because u never know that out of nowhere a new invention or a amazing discovery could be the reason for that unavoidable lock on the door of your bread and butter, For example, Telegraph business was closed due to the arrival of telephones and likewise instant messaging has been reducing the no of users of the short message service for a while now.While it is true that better service attracts and retains customers but it is equally true that a large group of customers could get attracted to a new and more inexpensive product/service with the same thing being done more efficiently and taking very less time out of their lives compared to the traditional way. For eg , According to some musicians it is more time and money saving to use a music production software(like the Sony ACID music studio 9)over the traditional music studio where one has to make a huge hole in the pocket to create a music album. As long as the fanboyism is not affected in a negative sense more and more musicians will consider using the software apt.And this type of tech effect is also seen on the retail market. As more and more websites are emerging and targeting a particular product segment or the A to Z shopping portal of www.AmaZon.com for any product u may think of, creating a shopping spree among the internet users. Though internet marketing in India is low as compared to the western countries; it is growing at fast pace with early adopters launching their websites on daily basis. At present time, internet is playing a major role in removing business limitations of past, now a sales person can directly reach clients doorstep and offer the most satisfying services in a click. Advanced technologies and web applications with safe transaction assurance are giving enough reasons to the new age Indian buyers to shop online.Smartphones, tablets and of course the computers are the main reasons why the online market had a superfluous growth in the western countries. Web experts believe that it will take some time to spread the online marketing phenomena in Indian society by and large; however, it will seep in soon and benefit many Indian consumers. Indians are catching online shopping fever slowly, though right on time. The registered growth of 18% of online shoppers in 2012 is giving tight competition to the retailers and is only going to increase , but on the other hand some believe that the online sellers have a feeble chance to survive in the Indian market as the Indian consumers like to feel the product before buying it so that they can be assured of its quality which is simply not possible while shopping online , at least for now !The following facts and figures will hopefully tell let us know how the online shopping started and grew to be the biggest rival of the retail business:1. The first online shopping site on internet was the pizza shop by Pizza Hut in 1994.2. The best seller product in shopping sites worldwide is Books. 3. Best-selling book on Amazon for 2012 was the autobiography of Steve Jobs- "Steve Jobs".4. The number of online shoppers in U.S is expected to grow to 170 million in 2015 according to eMarketer estimates.5. Statistics from the online payment company PayPal show that 20% of those who abandon or fail to complete an online purchase do so because they have concerns about the security of their credit cards.6. U.S e-commerce sales grew from 72 billion U.S. dollars in 2002, to 228 billion U.S. dollars in 2010.7. Amazon's websites has 94 million visitors per one month (!)8. Online shopping is more popular among younger and middle-aged user. Shoppers between the ages of 35 and 44 make up 29 percent of all online spending, though consumers between 25 and 34 are spending larger amounts online. (By Transactis research group).9. 72% of women looking online for apparel, it has become the most popular cross-shopping categories. And now some statistics specific to India : The Indian E-commerce market scale was evaluated around $16 Billion in 2013 and is expected to reach $56 Billion by the fall of 2023. The growth rate has touched 85% mark till now and in next ten years, it is projected to acquire 6.5% of the total retail market if India. India has secured position in top 10 countries list of ecommerce chosen by online buyers. In a research conducted by eMarketer, it is stated that India crossed $1.08875 trillion of ecommerce sales internationally. It recorded 21.9% yearly growth as compared to 2011 and 19.3% jump in global sales. More than 7.6 million people are found visiting deals and discounts based websites, which is a proof itself of their growing fad for online shopping.Now as we have seen the facts about the online business let us have a look on the factors as to why are consumers deviating from traditional stores to online stores ?1. Commercial Factors Cheaper Rates - The scale on which ecommerce operates is huge thus sellers are able to offer great discounts and slashed prices. It excites a budget-wary consumer as well as the random shoppers. The developing logistics - Advanced logistics solutions have made the delivery process easier and faster making the people more thrilled about online shopping. Retailers are succeeding enough in reaching the doorsteps earlier than promised. Segment specific growth - The biggest impact in Indian online shopping has been made by the travel industry. Around 75% of it is encompassed by hotels booking, air ticketing, holiday packages etc. Internet Progression - Web is a place that allows users to find, compare and explore things that satisfy their needs. There are many brands which are not easily and nearly available in each city of India. To shop them online is thus the best and favored option as internet is widely available to people now. The cheaper rates of internet have significantly added to trending ecommerce. Smart phones Industry on rise - The rise in smart phones and tablets demand has pushed the price down. The market is bound to grow even more as more than 8,000 new smart phones are being sold each day. The tablet market is evaluated to have sold 1 million of it in 2013 alone.2. Technical Factor The faster & accessible Internet - Advancement in New media technology has boosted the accessibility, which in turn supports the buying needs. The internet was in its budding state ten years ago but today it is better & faster with 3G and 4G entering Indian domain. So, the ecommerce sellers are guaranteed to make headway in business too. Smart phones advanced technology - The more technologically advanced Smart phones have come forward as the biggest promoter of e-shopping trend and lifted the online sales figure up. The ease they deliver makes the online shopping experience pleasurable for buyers. Extending Mobility - A report published by Ernst and Young states that 4G and smart phone revolution in India is going to change the face of media reach in India. India is said to have 1 billion wireless subscribers, as of May 2012. This extending mobility has created a situation where reaching out to rural India is not a trouble anymore. Mobiles are more accessible than newspapers and electricity today. Faster + cheaper Broadband 2G, 3G and now 4G, this development chain has created many netizens in India. People are found to have caught the fancy of staying online and thats a positive sign for ecommerce consumption.3. Demographic Factors Consumer stance - The success of ecommerce platforms like OLX and Quickr has heightened the trusts of Indian consumers in online buying & selling. They have generated a positive outlook towards online marketplace that supports ecommerce industry. Online means on life nowadays - Almost every activity takes place online these days, whether it is ordering food, mailing a friend, searching a job or booking a bus ticket. The average time spent per month has increased from 12.9 to 17.4 and by 2015 it is expected to touch the mark of 21. Rise in disposable income - It has significantly added to this sea-change. The spending power has risen and people are more willing to indulge in regular shopping. Computer literacy rate - With overall improvement in education rate, the number of people disposed to computers is also increasing. Educated people are seen to be more active in online purchase than the less educated group.4. Social Factor Boom of Social Media - The social bombardment on web is pushing the online shopping industry by making the consumer savvier. Brands are getting a way to bridge the gap with its potential buyers through these networks. India has the Facebooks third-largest audience population in the world after the US and Brazil. According to statistics, there is a big fraction of people who use internet first time for just using social networks and turn into regular internet users soon. Changing Lifestyle - Urbanization has changed the lifestyle and peoples needs have changed too. As per United Nations, more than 31% of Indias population resides in urban areas and the shopping needs of urban people are quite more than the rural ones. Globalization- The socio-economic structure of India is heavily influenced by Globalization. Development on trade, economy & communication grounds have led to a state where people think globally and act uniformly. Young population - India has a major segment of young people that is likely to reach 64% by 2020. Hence, younger generation is the key factor behind this immense growth. With youngest generations growing tech savvy, the eldest of families too are motivated to explore internet. Product Line - The bigger portion of these online stores consists of Apparel and other consumer goods which people do not feel apprehensive to spend on. Media Reach - FM, Television and outdoors reach in peoples lives is a chief cause of Indian consumers growing inclination towards online shopping. It impacts their buying tendencies to a great measure. Digitalization - The state of National growth and everything being digitalized is evoking confidence and attraction in people to go online for fulfilling their routine needs.While some factors why consumers are shifting to the online stores are pretty obvious some are not. Either way its pretty much clear why? Lets have a look at some of the advantages and disadvantages of online shopping and the traditional one.So there are people who prefer to do their shopping online and then there are those that do not. So when it comes to online shopping vs. traditional shopping, both sides have their advantages and disadvantages. Lets say you are shopping for fine china or silverware, it will be very difficult to purchase exactly what you want because simply pictures will not be able to give you an idea of how it looks and feels. This is where offline shopping or traditional shopping has an edge over online shopping. Security is another concern when it comes to online shopping vs. traditional shopping. With online shopping there is no way of you knowing that someone is stealing your data. You dont even know if you will actually get the things you purchase. This makes online shopping a bit more unsecure when compared to traditional shopping. Another disadvantage to online shopping vs. traditional shopping is that there are many online stores that will ship within a certain area for free but many times if you are located outside of the city or area you will need to pay hefty shipping prices, unlike traditional shopping where you enter in a store purchase what you like, get your credit card charged and leave. Finding things online is pretty easy. You just open up a search engine like Google and type in what you are looking for. This is probably the biggest advantage of online shipping vs. traditional shopping. With traditional shopping you will need to search from one shop in the mall to the other looking for what you want, sometimes driving all over town to several different stores. There might also be times when you wont find what you are looking for. With online shopping you will instantly know if you can find what you are looking for, or if you cant, potentially saving you hours looking for what you want. Quality is the biggest issue when it comes to online shopping vs. traditional shopping. There is no way you will know if what you are purchasing is of the quality you want. There are many online shops that sell cake but you have no way to really know if the cake is tasty. With traditional shopping you get to smell and in some cases even taste the cake. This way you know exactly what you are purchasing and how good it is. Anyways the central reason why the consumers are shifting to the online stores is the low price at which most shopping websites sell their products to the customers, and the central question is why are the able to do that ? Our research is regarding why is the same product sold at a much lower rate on the online store compared to a retail outlet ? Is the selling cost greater for the retailers as they have to pay the shop rent and things like energy bill ? Are the online sellers keeping a lower profit margin? OR is it something else altogether? Are the citizens of India willingly accepting the online way to transact or do they still prefer the traditional baniya system ?The answers to these questions lie in the mind of retailers, online sellers and the people of India.

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

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

Aim- 1. To analyze where customers are inclined to buy a product?2. To uncover that in which store is the cost of selling more (online or traditional)?3. To learn how important it is for the consumers to shop online?4. To determine from where will the consumers prefer shopping if the same product is sold at same price in both type of stores?5. To know what percentage of the consumers trust online shopping from the sample?6. To find out if the consumers still prefer to get the feel of the product before buying it?7. To know if online shopping affecting on retail business because consumer can shop right from their home?

Objectives :

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

Sample description:The sample is divided in three part viz, online store owners, Retail or traditional stores owners and the consumers.The sample size of each is as following:

Consumers = 15Online sellers = 7Retail or traditional sellers = 7..Total sample size = 29

Data Collection procedure:1. Three different questionnaires were made keeping in mind the nature of sample to which they are associated. 2. The first Questionnaire was made for the Online Sellers in which had 10 close ended questions. 3. The second questionnaire was made for the retail sellers in which again had 10 closed ended questions.4. The third which was the last questionnaire, was made which had 15 closed ended questions, plus 4 open ended questions and 11 rating questions.5. The questionnaire for the consumer sample was distributed among friends and family and was asked to be filled as honestly as possible.6. The questionnaire for the online sellers sample was recited to the respected sellers over telephone calls and their reply was noted simultaneously. The details of the online sellers were asked to the concerned employees of eBay.in which were provided by them after carefully after verifying our group member Kishan as their past customer.7. The questionnaire for the retailers was filled by retail employees working in different shops and outlets of some retails chains and some were filled by the owners of private retail shops. The retail questionnaires were filled in Vashi, Navi Mumbai, and Mumbai by the group members namely Rohit and Sanjay in a formal fashion.8. Finally the report was made after the careful analysis of the answers given by our sample population which was 29 in number.

Analysis of the primary data:

Topic: Sellers thoughts on the inclination of the consumers preference VS consumers choice of shopping between the two markets

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DiscussionThe retailers are really trying to compete with the online sellers and are constantly trying to bring down the price so that they could attract some customers lost to the online sellers. The retailers are fully trying to utilise the face that the customers could see and feel the product before they buy it and are trying to use it to their advantage. They are trying to give the full description and demonstration of the product with a demo. Sometimes they even offer insurance with a discounted price with accidental damage guarantee on some electronics (eg.Sony xperia Z1-Accidental damage guarantee)The online sellers on the other hand have a good return policy of approximately 30 days. The customers trust the online shopping more because of the Cash on delivery where they dont need to disclose their credentials anytime during the transaction. Whereas the online shopping website offers one stop solution for your need to shop and compare different brands. This is one of the big reasons why the consumers are inclined towards shopping online. On the downside it was found that the consumers feel that it is not user friendly or to be more precise the consumers are not able to use it conveniently.It is rarely found that a retail store having a 24X7 helpline but we a shopping website like eBay.in does offer the same thing. The automated process of the online shopping websites has reduces the cost of running the business to face the customers in the form of payments or salaries of the employees.Limitations:1) Our research does not cover a huge sample size which could give different results and conclusion.2) It has been found that the retailers are mostly from Mumbai and Navi Mumbai but the online sellers have been picked from across the nation due to poor financial inputs and a shorter time period, which is why our research conclusion ceases to be applied on a National level.3) Though the sample consumers come from different cultural backgrounds, it has been seen that there is uniformity in the answers and some questions have also been answered in a similar fashion as the other respondents.

Constraints:

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

Future Scope

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

CONCLUSION

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

So to sum it up the retailers are hot happy as the cost to sell a product is much higher for them compared to the online shopping sites, which results in a higher selling price of the retailers.

BIBLOGRAPHY www.timesofindia.com http://blog.pricegong.com/2012/03/10-facts-about-online-shopping.html http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth/ http://upstreamcommerce.com/blog/2012/02/14/8-reasons-consumer-likes-shop-online/

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