volume xvi december 2016 - hinduja journal

Volume XVI

December 2016

ISSN 0975-1211

REVELATION

The Research Journal

of

K.P.B. Hinduja College

Volume XVI

December 2016

K.P.B. Hinduja College of Commerce

315, New Charni Road, Mumbai 400 004.

ISSN 0975-1211December 2016

Editorial Board

Chief Editor: Dr. (Ms.) Minu Madlani

Executive Editor: Dr. (Ms.) Rajeshwary G.

Advisors:

1. Dr. J.F.Patil

2. Dr. S.K.G. Sundaram

3. Dr. L. M. Dani

4. Dr. G.M.Talhar

5. Dr. R.R.Khan

6. Prof. Balvinder Singh

7. Prof. Rajendra Shah

Place of Publication: K.P.B. Hinduja College of Commerce

315, New Charni Road,

Mumbai 400004.

Views expressed in the articles are those of the authors and do not necessarily represent

those of the Editor of the Journal. All rights are reserved. No part of this publication may be

reproduced or copied in any form by any means without prior written permission.

ISSN 0975-1211

Vol. No. 16 December 2016

Contents

Sr. No. Subjects Page No.

1 Foreword from the Chief Editor v

2. From the Executive Editor’s Desk vi

3. A Study on Attitude of Commerce Students towards TraditionalLearning & E-Learning

Ms. Shehnaaz Nazkani

1

4 Consumer Behavior towards Organized Retail Outlet, a Case Study

of Big Bazaar with Special Reference to Nasik City

Principal Dr. (Ms.) Chitra NatrajanMs. Vanshika Vanjani

13

5 Online Shopping: A Study on Factors Influencing Consumer’sPerception towards Online Purchase

Ms. Samira Sayed

22

6 Marketing Strategies and Consumer Behaviour of Patanjali in the

Fast Moving Consumer Goods and Ayurveda Segments

Prof. Savina Shenoy

34

7 Compensation Management in Unorganised Sector- A Study of

Stone Crushing Industries in Mandya District

Dr. Nagaraju C.

50

8 A Study on Consumer Preferences towards Ola/ Uber Services with

Special Reference to Mumbai

Ms. Jyoti Singh

65

From the Editor’s Desk

The Research Journal Revelation is being brought out by K.P.B. Hinduja College of

Commerce with a view to assist academicians, professionals and researchers to share

information on topics related to Growth and Development of Business in India. The aim of this

Journal is to encourage researchers to contribute research articles based on Industry

Studies or on the Findings of Research Projects that have been executed. Issues relevant to

the growth and development of Indian Economy, in the streams of Arts, Science, Social

Sciences, Economics, Commerce and Management are also welcome.

Original research articles based on an up to date review of literature and supportive

primary/secondary data are invited.

Frequency of Publication: Biannual

Contact Address:

K.P.B. Hinduja College of Commerce, 315, New Charni Road, Mumbai.400 004.

Phone 022 4098 9000 Fax : 2385 93 97.

Email : [email protected]

Executive Editor’s E mail address: [email protected]

mailto:[email protected]

Foreword from the Chief Editor

Today, with urban planning taking a virtual backseat, Indian cities have become highly

congested and chaotic. Good city planning necessitates various critical elements such as the

provision of clean water for citizens, sewage treatment, robust road infrastructure and

efficient transport networks.

India faces a wide range of urban challenges ranging from serious air pollution and poor

local governance to badly planned cities and a lack of decent housing. India’s Smart Cities

Challenge, which has selected certain cities that will receive funding could go a long way in

addressing these issues.

Urbanization in India has become the victim of systemic inefficiencies and a paralysis of

policy. Less emphasis is laid on modern methods of town planning which would ensure

better health for their residents; facilitate better time management and save natural resources,

besides making more land available for productive usage. A paradigm shift from the old-

fashioned and conservative approach to a broadminded and modern approach to urban

planning is the need of the hour.

Over the past few decades, without any futuristic planning, several Indian cities have

expanded haphazardly mainly on account of the rapidly growing population. The

government’s recent announcement of 100 Smart Cities and AMRUT (Atal Mission for

Rejuvenation and Urban Transformation) of 500 cities are a ray of hope for urban

development in the coming years.

According to the Prime Minister, Shri. Narendra Modi, the five key instruments of a ‘Smart

City’ are the use of clean technology; the use of information and communications technology

(ICT); private sector involvement; citizen participation and smart governance.

Strong emphasis and focus needs to be given to urban planning. Efficient utilization of space,

resources and the health of residents will go a long way in laying the roadmap of future cities


in India. An analysis of the planning and layout patterns of existing modern global cities

could give a good perspective on modern planning.

Density is the key to a make public transit work and also to ensure safety. Dense pedestrian-

focused cities prevent crimes unlike cities spread on vast lands. Dense cities that have street

front stores have taken a big step in creating an automatic safety measure.

A pedestrian-focused city has a lot more advantages, such as improved health of citizens.

More people on the streets will also mean opportunities for social interaction, thus facilitating

a socially inclusive community.

Smart Cities are crucial for India to be competitive and productive. With the ‘Make in India’

campaign in full flow, India has become a preferred destination for setting up facilities which

means greater need for land, escalating traffic, more people on the streets, etc. Dense, mixed

use and pedestrian-focused planning will help make our cities economic engines, job

creators, safe, healthy and equitable.

Dr. Minu Madlani

Chief Editor

From the Executive Editor’s Desk…

As expanding metros swamp villages on their way, the solution to a crisis waiting to explode

perhaps lies in designing cities explicitly for the rural areas. Half the world’s population lives

in cities. Of the three billion urban dwellers, one billion live in slums. In India, three out of

five people live in slums. An increasing migration from the villages will make that four out

of five within 10 years.

The new census figures on urbanization have suddenly revived the age-old migration debate

that has existed since the rejection of the Gandhian view that village life could be filled with

dignity and virtue. Sadly, the argument of making a life in the village today can only be

tinged with hollow laughter: derelict, teacher less schools, abandoned health centres, parched

lands and a continuing social divide – all make the city slum and footpath an attractive

option. The old hopes of government largesse lie tattered in the complete demise of public

rural programmes, undone by years of ineptness and corruption.

In the last 50 years, however, public action related to the influx into towns has only

accommodated trends, leading either to increasing densities or to the widening of city

boundaries. Indian cities have neither really endorsed particular urban values, nor have they

had the will to govern. There are daily wars on water supply, roads, electricity, school

admissions and government departments. With no restrictions on cars, no congestion tax,

uncertainty about mixed use living, changing and changeable building norms, thoughtless

codes on historic preservation, the city is little more than a modern day trading outpost – a

marketplace to extract favours, exchange goods and earn a livelihood.

If the cities are to provide better basic services to their growing populations, three linked

steps are needed: cities must be given full autonomy; they must adopt modern management

systems and strong measures must be taken to improve governance. The autonomy for cities

should encompass functional autonomy, financial autonomy and administrative autonomy.

There is also a need to overhaul the land use planning process which lacks any economic

rationale and is subject to frequent litigation and court intervention. Modern management

practices should include a commercial orientation in service delivery. Water and sewage are

invariably mismanaged by municipal bureaucracies. Hence, they must be run by corporate

bodies responsible and answerable to the city government. Qualified staff, selected

transparently and competitively at all levels, specifically for management positions should be

encouraged. The main element of good governance should include a municipal law that sets

out the functions and responsibilities of the city government, the way in which it should

perform the functions and its accountability to the citizens. Besides, the appointment of an

inspector- general with the power to investigate citizen complaints and the monitoring of the

performance of the city government by citizen organizations that act as watchdogs against

malfeasance will also go a long way in the success of the endeavor.

Autonomy for city governments would diminish and redirect the state government’s power.

State bureaucrats are likely to resist changes to their turf, and state politicians are likely to

want to maintain their control over municipal resources and their opportunities for patronage

and aggrandizement, particularly in municipal appointments, transfer and land use

regulations. The only prospect for reform along the lines proposed is if an enlightened State

Chief Minister decides to place personal and party interests behind the interest of people.

Whether this will happen is difficult to say, but some States do show signs of such a change

in the political climate and this offers a ray of hope for a better future for overcrowded and

underdeveloped cities.

Dr. (Ms.) Rajeshwary

Executive Editor

1

A Study on Attitude of Commerce Students towards Traditional Learning & E-

LearningMs. Shehnaaz Nazkani

Abstract

The technological revolution has created a new dimension in total education development.

The concept of E-learning is very comprehensive. It covers a broad range of electronic media

like Internet, Intranets, Extranets, satellite broadcast, audio/video tape, interactive TV and

CD-ROM to make the learning procedure more elastic and operator friendly. The demand

among the users is growing day by day for e-learning due to its flexible nature. This initiative

has linked people around the globe and has helped in overcoming the hurdles related to age,

gender, location and time. The researcher aims to study the attitude of commerce students

towards traditional learning and E-Learning based on their gender and qualification.

Key Words- E-learning, traditional learning, attitude.

1. Introduction

Technology has dominated all domains of life. It has created high impact on all the fields

including education sector. In the last few years, the process of education has undergone

radical change in the way it imparts knowledge to its users. Nowadays, a great emphasis is

laid on the concept of digitalization and automation. Earlier the internet access was limited,

however now it is available to users at their place of work as well as home. Information is the

key to success in all the fields.

Concept of Traditional Learning

Traditional learning programs utilize the long-established technique of on-campus classroom

meetings for delivering course information and facilitating student conversation and debate.

Students meet at an assigned time and place to partake in class lectures, labs, study groups

and exams. Traditional learning environments are more structured than distance learning

programs and provide face-to-face contact with fellow students and professors. The

traditional learning comes in basic four forms: Classroom sessions, The Lab sessions, Library

sessions and Collaborative Learning.

∗ Asst. Professor, K.P.B. Hinduja College of Commerce, Mumbai.

2

Concept of E-learning

The term E-learning means Electronic Learning and it is basically the online delivery of

information communication, training and learning. E-learning involves the use of computers

and Internet to aid in the learning process. There are four types of E-learning: Self Study

sessions, Asynchronous Learning, Synchronous Learning and V-Lab Sessions.

2. Review of Literature

1. Aggarwal Deepshikha (2009) stated in her study that e-Learning can be scrutinized at two

levels. The first one is education and another one is training. For education can be used at

both fundamental and advanced levels. In training it can be used by organizations to train and

upgrade their personnel. Knowledge and information is transmitted to users at a faster pace.

However in India there is a need to focus more on content development and availability of

multi lingual coursework.

2. Snehi Neeru (2009) indicates transformation of higher education in the country in terms of

access, equity and quality due to usage of ICT in education.

3. Shaikh Farhat Fatma, (2013), emphasized in her study that the major challenge related to

the concept of e-learning is to involve the major part of the India’s population leaving in the

rural areas. Other issues are related to lack of infrastructure in terms of connectivity,

availability of internet.

4. Rakesh H M (2014) highlighted that information and communication technologies (ICTs)

have vast potential in education sector. However, the enlargement, usage and change

management of E-Learning happens with a particular context.

3. Objective of the Study

The principal objective of the paper is to study the attitude of commerce students’ towards

traditional learning and E-Learning based on their gender and qualification.

4. Research Methodology of the Study

The research design for the study is descriptive in nature. The data has been collected from

primary as well as secondary sources. The researcher largely depended on primary data. The

required data were collected from the commerce students of South Mumbai colleges. Using

convenient sampling technique a sample size of 130 commerce students was taken into

consideration. The respondents were distributed well designed questionnaire to collect the

3

responses from them. The secondary data have been gathered from published material in

various books, journals, newspaper, business magazines and various websites. The relevant

data so collected was analysed using simple percentage, Chi-square test and T-test

5. Analysis and Interpretation

Distribution of the respondents based on their gender and level of education is given in the

table below.

Table 1

Personal Profile of the Respondents

Variable Category Frequency Percent

Gender Of Students

Male 45 34.6

Female 85 65.4

Total 130 100.0

Level Of

Education

Undergraduate 61 46.9

Graduate 56 43.1

Post Graduate 13 10.0

Total 130 100.0

Source: Primary Data

The above table indicates that out of the total 130 respondents 34.6 per cent are male and

65.4 per cent are female. It also indicates that 46.9 per cent are undergraduate, 43.1 per cent

are graduate and only 10 per cent are post graduate.

Table 2

Respondent’s Frequency of Access to Computer at Home for College Work

Response Frequency Percent

Always 66 50.8

Sometimes 56 43.0

Never 8 6.2

Total 130 100


4

The above table indicates that 50.8 per cent of students have always access, 43 per cent have

sometimes access and 6.2 per cent do not have access to computer at home to do their college

work.

Table 3

Respondent’s Frequency for Purpose of Using E-mail

Response Frequency Percent

For Communication 89 68.5

For Entertainment 4 3.1

For Sharing Study Material 30 23.1

Other 7 5.4

Total 130 100.0


The above table indicates that 68.5 per cent of the respondents use their email for

communication purpose, 3.1 per cent for entertainment purpose, 23.1 per cent for sharing

study material and 5.4 per cent use it for other purpose.

Table 4

Respondent’s Frequency of Using Internet for Playing Games Based on Their Gender

Hour/week1 Hour/

Week

2 Hours/

Week

3

Hours/Week

More Than 3

Hours/Week

Gender of

Students Cou

nt % of

Total Cou

nt % of

Total Cou

nt % of

Total Cou

nt % of

Total Cou

nt % of

Total

Male 24 18.5% 7 5.4% 4 3.1% 10 7.7% 45 34.6%

Female 64 49.2% 4 3.1% 5 3.8% 12 9.2% 85 65.4%

Total 88 67.7% 11 8.5% 9 6.9% 22 16.9% 130 100.0%


Inference:

It is inferred that 7.7 % of male students and 9.2 per cent of female students use internet for

playing games for more than 3 hours /week. Out of the total respondents, 16.9 per cent use

internet for playing games for more than 3 hours /week, 6.9 per cent use for 3 hours /week,

8.5 per cent use for 2 hours /week and 67.7 per cent use for 1 hour/week. Also, it is revealed

that, the percentages of female students are more than the percentage of male students who

use Internet for playing games at least one hour /week.

5

Table 5

Respondent’s Frequency of Using Internet for Learning Based on Their Gender

Hour/Week 1

Hour/Week

2 Hours/

Week

3

Hours/Week

More Than

3

Hours/Week

Total

Gender Of

Students 1

Hour/Week

% of

Total Cou

nt % of

Total Cou

nt % of

Total Cou

nt % of

Total Cou

nt % of

Total

Male 12 9.2% 10 7.7% 6 4.6% 17 13.1% 45 34.6%

Female 33 25.4% 18 13.8% 10 7.7% 24 18.5% 85 65.4%

Total 45 34.6% 28 21.5% 16 12.3% 41 31.5% 130 100.0%

Source: Primary Data.

Inference:

It is inferred that 13.1 per cent of male students and 18.5 per cent of female students use

internet for learning for more than 3 hours /week. Out of the total respondent’s 31.5 per cent

use internet for learning purpose for more than 3 hours/week, 12.3 per cent use for 3

hrs./week, 21.5 per cent use for 2 hour /week and 34.6 per cent use for 1 hour./week. It is also

revealed that, the percentage of total students both Male and Female (34.6 per cent) who use

Internet for learning at least one hour/week is more than other responses.

Null Hypothesis: There is no significant association between the respondent’s frequency of

using internet for learning and their Gender.

Alternate Hypothesis: There is significant association between respondent’s frequency of

using internet for learning and their Gender.

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 2.179a 3 .536

Likelihood Ratio 2.211 3 .530

Linear-by-Linear Association 2.009 1 .156

N of Valid Cases 130

Source: Primary Data. a0 cells (0.0%) have expected count less than 5.The minimum expected count is 5.54.Calculated value of Pearson Chi-square is 2.179.

6

At the degree of freedom 3 and 5 per cent level significance the tabulated value of χ2 is 7.81.

As calculated value is lesser than the tabulated value null hypothesis is retained.

Result: Chi-square test statistics of 2.179 (sig value > 0.05) indicates that there is no

significant association between the two variables.

Table 6

Respondent’s Frequency of Using Internet for Learning Based on Their Qualification

Level of Education Hour/

Week

1

Hours/Week

2

Hours/Week

3

Hours/Week

More Than

3

Hours/Week Total

Undergraduate Count 24 10 8 19 61

% of Total 18.5% 7.7% 6.2% 14.6% 46.9%

Graduate Count 18 16 5 17 56

% of Total 13.8% 12.3% 3.8% 13.1% 43.1%

Post Graduate Count 3 2 3 5 13

% of Total 2.3% 1.5% 2.3% 3.8% 10.0%

Total Count 45 28 16 41 130

% of Total 34.6% 21.5% 12.3% 31.5% 100.0%


Inference:

It is inferred that 14.6 per cent undergraduate students, 13.1 per cent graduate students and

3.8 per cent post-graduate students use internet for learning for more than 3 hours /week.

Whereas 18.5 per cent undergraduate students, 13.8 per cent graduate students and 2.3 per

cent post-graduate students use internet for learning for 1 hour /week.

7

Table 7

Respondent’s Frequency for Searching Books to Find Information for a College

Project than Searching Website

Response Frequency PercentExpected

N

Obs

Chi-

Square

Table

Chi-

square

DF

Significanc

e at 0.05

level

Strongly

Disagree

8 6.2 26.0

56.077a 9.49 4 Significant

Disagree 30 23.1 26.0

Undecided 20 15.4 26.0

Agree 57 43.8 26.0

Strongly

Agree

15 11.5 26.0

Total 130 100.0

Source: Primary Data a. 0 cells (0.0%) have expected frequencies less than 5. The minimumexpected cell frequency is 26.0.

The above table reveals that, 43.8 per cent students agree and 11.5 per cent students strongly

agree that they prefer searching books to find information for a college project than searching

website.

From the above table, at the degrees of freedom 4 and 0.05 level of significance the table

value of χ2 is 9.49 and the obtained value of χ2 is 56.07. As the obtained χ2 is greater than

table χ2 value; hence the obtained χ2 is significant.

Consequently it is revealed that, there is a significant difference in believe that the students

prefer searching books to find information for a college project than searching website.

8

Table 8

Respondent’s Frequency for Their Preference of the Web Assisted Activity Instead of

Textbooks because it had Animation and Sound


N

Obs

Chi-

Square

Table

Chi-

square

DFSignificance

at 0.05 level

Strongly

Disagree4 3.1 26.0


Disagree 21 16.2 26.0


Agree 55 42.3 26.0

Strongly

Agree30 23.1 26.0

Total 130 100.0

Source: Primary Data. a. 0 cells (0.0%) have expected frequencies less than 5. The minimum

expected cell frequency is 26.0.

The above table reveals that 42.3 per cent students agree and 23.1 per cent students strongly

agree that they prefer web assisted activity instead of textbooks because it had animation and

sound.

From the above table, at the degrees of freedom 4 and 0.05 level of significance the table

value of χ2 is 9.488 and the obtained value of χ2 is 53.923. As the obtained χ2 is greater than

table χ2 value; hence the obtained χ2 is significant.

Consequently it is revealed that, there is a significant difference in believe that the students

prefer web assisted activity instead of textbooks because it had animation and sound.

9

Table 9

Respondent’s Frequency for their Opinion that Websites Will Take over Books in the

Future


N

Obs

Chi-

Square

Table

Chi-

square

DFSignificance

at 0.05 level

Strongly

Disagree2 1.5 26.0


Disagree 11 8.5 26.0


Agree 57 43.8 26.0

Strongly

Agree35 26.9 26.0

Total 130 100.0

Source: Primary Data. a. 0 cells (0.0per cent) have expected frequencies less than 5. The

minimum expected cell frequency is 26.0.

The above table reveals that 43.8 per cent students agree and 26.9 per cent students strongly

agree that websites will take over books in the future. From the above table, at the degrees of

freedom 4 and 0.05 level of significance the table value of χ2 is 9.488 and the obtained value

of χ2 is 70.923. As the obtained χ2 is greater than table χ2 value; hence the obtained χ2 is

significant.

Consequently it is revealed that, there is a significant difference in believe that the Websites

will take over books in the future

10

Table 10

Respondent’s Frequency for Method Used to Improve Academic Achievement Based on

Their Gender

Gender of

studentsMethod

Traditional

Learning E-Learning BothTotal

Male Count 4 5 36 45

% of Total 3.1% 3.8% 27.7% 34.6%

Female Count 4 2 79 85

% of Total 3.1% 1.5% 60.8% 65.4%

Total Count 8 7 115 130

% of Total 6.2% 5.4% 88.5% 100.0%


Inference:

From the above table we can infer that 27.7 per cent male students and 60.8 per cent of

female students use both the method traditional as well as E-learning for improving their

academic achievement. Out of the total respondents, 6.2 per cent students’ use only

traditional method and 5.4 per cent students’ use only E-learning for improving their

academic achievement. It is also revealed that, the percentage of total students (88.5 per cent)

who use both the methods is more than other responses.

Null Hypothesis: There is no significant impact of the gender on the method used to improve

academic achievement.

Alternate Hypothesis: There is significant impact of the gender on the method used to

improve academic achievement.

Group Statistics

Gender of Students N Mean

Std.

Deviation Std. Error Mean

Which of the

following method

do you used to

improve your

academic

achievement?

Male 45 2.71 .626 .093

Female 85 2.88 .448 .049

11

Independent Samples Test

F Sig. T Df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Equal

variances

assumed

10.95

6

.001 -1.800 128 .074 -.171 .095 -.359 .017

Equal

variances

not

assumed

-1.628 68.406 .108 -.171 .105 -.381 .039

As the Levene’s P value is less than 0.05 the variance are significantly different. Hence, we

will interpret the bottom row of results for t-test.

The P value for t-test is 0.108 which is greater than 0.05 i.e. the test is not significant. Hence,

the null hypothesis will be retained.

Result: There is no significant impact of the gender on the method used to improve academic

achievement.

6. Limitations of the Study

Following are the limitations of the present study:

1) The study is limited to commerce students of south Mumbai colleges only.

2) Due to time, geographical and financial constraints a sample size of 130 respondents only

has been considered for the study by using convenient sampling technique.

7. Conclusion

From the statistical analysis and interpretation of data collected it is found that for more than

3 hours./week 16.9 per cent respondents use internet for playing games whereas 31.5 per cent

use it for learning purpose. This indicates a welcome trend for e-learning among the

commerce students. It has been observed that there is no significant association between the

respondent’s frequency of using internet for learning and their Gender. This indicates that e-

learning is accepted as a tool to enhance knowledge by all the students. It is observed that the

students prefer searching books to find information for a college project than searching

12

website which proves that the adoption of e-learning has been slow and needs a major

marketing and awareness effort. It is found that 88.5 per cent of the total students use both the

methods traditional as well as E-learning to improve their academic achievement which

means there is no impact of gender on the method adopted by students. It also indicates that

students have realized the prominence of modern technology on their studies. We can

conclude that E-learning will be widely used in future due to its flexible nature and its ability

to provide for right information at right time and in the right place.

References

1. Shaikh Farhat Fatma (2013), “E-Learning trends issues and challenges”, International

Journal of Economics, Commerce and Research (IJECR), Vol. 3, Issue 2,pp. 1-10.

2. Ali Tizro et. al (2014), “Identification and Classification of E-Learning Barriers in

Universities: Confirmatory Factor Analysis (Cfa)”, APJEM Arth Prabhand: A Journal of

Economics and Management, Vol. 3, Issue 10, pp. 105-117.

3. Aggarwal Deepshikha (2009), “Role of e-Learning in A Developing Country Like

India”, Proceedings of the 3rd National Conference; INDIACom-2009

4. Rakesh H M (2014),” Contextual Factors in using E-Learning Systems for Higher

Education in India”, IOSR Journal of Business and Management, Volume 16, Issue 2,pp.

98-102.

5. Snehi Neeru (2009), “ICT in Indian Universities and Colleges: Opportunities and

Challenges”, Management & Change, Volume 13, No. 2, pp. 231 – 244.

6. Soni Ravindra Kumar (2015), “A study of problems and prospects of e learning in

India”, A Thesis Submitted to Devi Ahilya Vishwavidyalaya, Indore.

7. Premalatha T (2011),”Perception of faculties and students on e-learning in professional

colleges”, Thesis submitted to Madurai Kamaraj University, Madurai.

8. Raut, Jayashree S (2008), “A study of traditional learning and e-learning of final year

students of medical, dental and engineering and their efficacy on their academic

achievements”, Thesis Submitted to Sant Gadge Baba Amravati University, Amravati.

9. Kakoty S, Lal M & Sarma S (2011), “E-learning as a Research Area: An Analytical

Approach”, (IJACSA) International Journal of Advanced Computer Science and

Applications, Vol. 2, No. 9, pp. 144-148.

10. http://study.com/articles/Traditional_Learning_Versus_Distance_Learning_A_Comparis

on.html.

http://study.com/articles/Traditional_Learning_Versus_Distance_Learning_A_Comparis

13

Consumer Behavior towards Organized Retail Outlet, a Case Study of Big Bazaar with

Special Reference to Nasik City∗ Principal Dr. (Ms.) Chitra Natrajan∗∗Ms. Vanshika Vanjani,

Abstract

In the last decade, we have seen a major growth and development in the retail sector of India.

Still now the major dominating sectors are the small and unorganized entrepreneur which

includes the local shops, Kirana stores, standalone stores, boutiques, the traditional family

stores, etc. But because of the growing Global economic powers, new economic policies, FDI

relaxations, and unique marketing strategies the modern retailers like shopping malls,

Hypermarkets saw a growth too, they tend to hook consumers even in Tier II and Tier III

towns. Organized retail sector is growing at rapid speed. The organized retail sector is

growing very tremendously and is providing more job opportunities to people, town plans are

getting better and modern, and eventually improving the consumer behavior too. This

transition is happening in a worldwide level in different forms and the shopping behavior of

consumer also changes with the changing choices and trends. This study is analyzing the

consumer behaviour towards organized retail outlet, a case study of Big bazaar with special

reference to Nasik city (Maharashtra, India).

Key Words: consumer behaviour, organized retailing, unorganized retailing

Introduction

The Indian retail sector is growing very rapidly with the changing demographics and

improvement in the standard of living of the people in the cities. The betterment of India's

consuming class, the growth of retail entrepreneurs and a variety of options available in

imported products particularly in food and grocery. Retailing is defined as a definite set of

activities or steps used to sell a product or a service to consumers for their personal or family

use. It becomes important for matching individual demand of customers by providing

supplies of all the manufacturers. The Indian Retail Industry has grown to be one of the most

∗ Principal. Chandrabhan Sharma College of Arts, Science and Commerce, Powai Vihar, Powai, Mumbai.∗∗ Asst.Professor, K.C College of Arts, Commerce and Science, D.W Road, Churchgate, Mumbai.

14

dynamic and fast growing industries because of the entry of several new players. This

industry accounts for over more than 10% of the country's Gross Domestic Product (GDP)

and around 8% of the employment. India is the world's fifth largest global destination in the

retail space. By 2020 India's retail market is foreseen to grow twice from US dollars 600

million in 2015 to US Dollars1 trillion, run by income growth, urbanization and attitudinal

shifts. While the overall retail market is expected to have an upward trend at 12% per annum,

modern trade would expand double the pace at 20% per annum and traditional traded 10%.

Retail Classification

Retail sector in India is divided in nature while on one side there are traditional retailers

called as an unorganised retailers to who exist in the economy since decades and hence

dominating the maximum share of retail business, but the organized sector of retailing is not

able to catch the real potential of the Indian retail market which are slowly grown the new

class of retailers called as the “organized retailers” who grew the new concept of retail trade

called as organized retail. This organized retail consists of various trading activities taken

over by corporate sector who manages huge retail outlets or chains of stores inside the city or

across the city using carefully chosen and trained personnel on huge scales. They are more

managed and systematic compact structures run by professionals. This has given rise to

organized retail and it is becoming a very important category of Retail Industry today and has

changed the whole concept of retail. It brought a revolution in the shopping orientation of

customers.

Consumer Behavior towards Organized Retail Outlets

Consumers prefer organized retail outlet as the best place to shop for hangout in the hot

summer as it's free of cost to enter inside this completely air condition complexes with proper

music playing around and various options of Window shopping which is enjoyed and

appreciated by everyone. The various food joints that offer different cuisines meant to create

a centre of attraction for all the food lovers. Also, retail outlets are very popular among all

ages. These serve various purposes like shopping, entertainment, get together, dating or

something as mere as a free of cost good place for passing time. These experiences were

never experienced by people before and hence have changed the trains to a level that the

glamour can also now be seen in real life in the small cities and major cities which were

earlier seen only on television screen. It has become possible to experience all this in his or

15

her own neighborhood. Today almost every region has malls and other formats of organized

retail.

Factors Responsible for the Growth of Organized Retail Outlets

Organized retailing developed recently. It is an outcome of socio economic factors. India is

standing on the peak of retail revolution. Healthy economic growth, changing demographic

profile, increasing disposable income, changes in the consumer taste and preferences are a

few of the main factors that are leading the growth in the organized retail market in India.

Following are the Factors Responsible for the Growth of Organized Retailing in India

1. Growth of middle class consumers

India is seeing a rapid growth in the number of middle class consumers. With the rise in the

consumer demand and greater disposable income it has given the Retail Industry an

opportunity to grow and prosper.

2. Increase in the Number of Working Women

Today the urban women are literate and qualified. They have been maintaining a balance

between home and work and the purchasing habit of a woman who is working is different

from a house wife.

3. Value for Money

Organized retail details in great volume and they are able to enjoy economy of large scale

production and distribution. They eradicate intermediaries in distribution channel.

4. Emerging Rural Market

Today the rural market in a country is having a tough competition in retail sector. These rural

markets are growing fast as the rural consumers are becoming aware of the quality of

products.

5. Entry of Corporate Sector

The huge business tycoons such as Tata, Birla and Reliance etc. have also entered the retail

sector and are able to provide good quality products as well as entertainment.

6. Entry of Foreign Retailers

Indian retail sector has got the interest of foreign retailers. Multinational have entered our

country through joint ventures and franchising due to liberalization.

7. Technological Impact

Technology is one of the most dynamic factors which lead to the growth of organised

retailing. Introduction of computerization, electronic media and Marketing Information

16

System have helped the face of retailing. Organised retailing in India has a huge future

because of the last market and the growing awareness of the consumer about quality of

products and services.

8. Rise in Income

Increase in the literacy level has eventually led to the growth of income among the

population. This growth has taken place not only in the urban areas but also in the rural towns

and remote places.

9. Media Explosion

They have been a tremendous explosion in media due to satellite television and Internet.

Indian customers have been exposed to a better lifestyle of different countries. They have

started expecting better quality products and have given rise to more demands of choices and

money value services and conveniences.

10. Rise of Consumerism

With the creation of consumerism, the retailer faces a more enlightened and demanding

consumer. As a business exist in order to satisfy the consumer needs, the growing consumer

expectation has stressed on the retail organizations to change the format of retail trade.

Consumer demand convenience, comfort, time, location etc are the important factors for the

growth of organized retailing in India.

Review of Literature

1. A. Kumar (2014) wrote in his book “Retail sector in India” where he majorly spoke and

focused on the consumer behaviour and the various retail outlets where he personally

believes that the consumers of the nation today are very different regarding value sensitive

who are not very sensitive towards pricing. In his book, he also said that the consumers are

not very concerned about the brand name as much as the features. This led to the shopping

malls where most of the features are available at one place like entertainment along with

shopping.

2. D.Gilbert (2003) in his book “Retail Marketing Management” has found out the various

reasons behind the growth of modern retailing. In this book, he tries to understand why this

growth in retailing is taking place. According to him we are saying the start of new forms of

retailing more than other forms of Business and hence we are getting more divided with

17

reforms focusing on the requirement of a specific consumer’s segment. This leads to a more

consumer-friendly atmosphere.

3. K. Biyani (2007) in his book “It happened in India” focuses on relationships through his

book, relationships with consumers employee, share holders and majorly family and friends.

The author also speaks about the building trust and explains us how important it is to have

trust from both the sides in a relationship. He also talks about forming a sentimental

connection with the customers. He stresses on Indian qualities in the business and how he

studied Indian customers with a lot of interest. He also revealed that even today he makes

sure he visits his stores and checks on the consumers personally to know and understand the

needs and their thoughts.

Objectives of Study

1) To know the overall satisfaction level of the consumers, buying products from big bazaar

in Nasik.

2) To study the preferences of consumers towards big bazaar and unorganized small stores

in Nasik.

3) To know the factors influencing consumers to buy products from organized retail outlets

like big bazaar in Nasik.

Hypothesis of the Study

H01: Organized retail outlet (Big Bazaar) and small retail stores are equally preferable by

consumers in respect of offers, price and quality of products provided by them in Nasik.

H11: Organized retail outlet (Big Bazaar) is more preferable by consumers than small retail

stores in respect of offers, price and quality of products provided by them in Nasik.

Scope of the Study

The study is focusing to market analysis of organized retail outlet (big bazaar). Therefore, the

scope of the subject is restricted to the above topic. For this study sample size is taken from

consumer’s side.

The study will be limited to organized retail outlets in Nasik like, Big Bazaar (Nasik road) and

Big Bazaar (College Road Branch)

18

Research Methodology of the Study

A proper research methodology is adopted to achieve the set objectives and the information

needed is collected through questionnaire method.

a} Data collection: The data is collected by using the following sources.

i} Primary data: As the study is focused only in Nasik, primary data is collected from

consumers visiting organized (Big bazaar) and unorganized retail outlets in Nasik.

ii} Secondary data: Secondary data is collected through newspapers, business magazine,

internet sites and relevant books.

b} Research instrument: The data collection is done, using structured questionnaires.

c}Sample selection: Random sampling technique is used to collect data through

questionnaire method.

d} Sample size: Questionnaires were administered with 100 consumers who visit organized

(big bazaar) and unorganized retail outlets in Nasik

Data Analysis and Interpretation of the Hypothesis

H01: Organized retail outlet (Big Bazaar) and small retail stores are equally preferable by

consumers in respect of offers, price and quality of products provided by them in Nasik.

H11: Organized retail outlet (Big Bazaar) is more preferable by consumers than small retail

stores in respect of offers, price and quality of products provided by them in Nasik.

Table 1

Preferences towards Organized and Small Retail Shops

Particulars Groupings Organized Retail Small Shops

Age Under 18 years 12 2

19 years -34 years 42 1



66 years and above 1 1

Gender Male 11 6

Female 75 9Source: Primary Data

19

Table 2

Chi-square Test:

Test Statistics

Value

Chi-Square 51.840a

Df 1

p-value .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum

expected cell frequency is 33.3.

Residual Table

Preferences of Consumers towards Organized Retail Outlet (Big Bazaar) and Small

Stores in Nasik

Observed N Expected N Residual

Yes 86 50.0 36.0

No 14 50.0 -36.0

Total 100

Since p-value for the chi-square is less than that of 0.05 indicates we should reject null

hypothesis and conclude that the consumers prefer organized retail outlets over small stores

in Nasik. The residual value for yes is positively deviated, this indicates that respondents

prefer organized retail outlet (big bazaar) than small retail shops in Nasik.

A variety of questions were asked in the questionnaire, basically to identify important factors,

which influence consumers towards big bazaar than small retail outlets in Nasik. Due to

limitation of time researcher tried to find out the responses among only two hypermarkets i.e.

Big bazaar (College road branch) and Big bazaar (Nasik road branch) and some questions

were related to small retail outlets. A question was asked to the consumers regarding giving

preferences among Big bazaar and small retail outlet. Out of 100 consumers which were

selected based on random sampling technique, given preferences to Big bazaar, as 86

consumers were in favour of buying products from Big bazaar because they get good offers

20

there and they get better products with comparatively cheaper price and they like the quality

of product as products in big bazaar go through a proper quality control and rest 14

consumers, buy from small retail outlets near their vicinity. They didn’t have any negative

impression regarding big bazaar but they said they like to buy from a particular shop as they

are buying these products since number of years from that shop.

Question regarding the age, gender, income and occupation and frequency of visit were also

asked to know whether demographic factors influence consumer behaviour towards

hypermarket like big bazaar. Irrespective of age, gender, income, occupation and frequency

of visit, majority of consumers preferred big bazaar. According to majority of consumer’s big

bazaar give them everything under one roof and it’s a market for everyone and for every age

group. As big bazaar, has multiplex and some food corners, which attracts consumers towards

big bazaar, as they can do shopping, eat food and can get entertained at one place.

After demonetization, majority of consumers prefer to make use of plastic money rather

doing cash transaction and carry high denomination notes and majority of small retailers still

believe in cash transaction in Nasik, so this also one of the factors of consumers shifting

towards big bazaar. Overall satisfaction of consumers towards big bazaar is positive as they

like the post sales services of products provided by big bazaar.

Conclusion

Majority of consumers have become more sensitive to quality, customer service and status.

They are basically looking for an experience which is more of cognitive than physical. The

above analysis also proved that the overall satisfaction level of consumers is much higher

than the small retail stores in Nasik. “Retailing is like riding a bicycle, you can't stop

pedaling," so the small retail stores should frame some policies or come up with some new

strategies to attract more consumers in Nasik.

References

Books

1. Kumar, A. (2014) “Retail sector in India”, Sholapur, Maharashtra: Laxmi Book

Publication.

2. D. Gilbert (2003) “Retail Marketing Management”, 2ndEd, Pearson Education.

21

3. Biyani, K. (2007) “It happened in India, Mumbai”: Rupa Publications.

4. Nayar, P. (2009). Packaging life, New Delhi: First Bookstores.

Research Papers:

1. Bikramjit Rishi, Harvinder Singh (October 2012) “Determinants of supermarket shopping

behavior in an emerging market”. Journal of Business and Retail Management Research

(JBRMR), Vol 7, Issue 1, pp 27-38.

2. Medha Kanetekar (2013, June) “Impact and effect on consumers of organized Retailing in

India” Proceeding of the International Conference on Social Science, Vol4, Issue 5, pp 186-

200.

3. Piyush Kumar Sinha (2003) “shopping orientation in evolving market”, Piyush Kumar

Sinha (2003) “shopping orientation in evolving market”, vikalapa, vol8, issue2, pp13-22.

4. Roy, Satyajit (2011)”An Overview of Retail Industry in India: Its Growth, Challenges and

Opportunities”. Available at SSRN: https://ssrn.com/abstract=1750794 or

http://dx.doi.org/10.2139/ssrn.1750794 ,retrieved on 15thmay, 2017

Websites:

1. http://www.yourarticlelibrary.com

2. www.wikipedia.com

3. .https://www.ibef.org

http://dx.doi.org/10.2139/

http://www.yourarticlelibrary.com

www.wikipedia.com

www.ibef.org

22

Online Shopping: A Study on Factors Influencing Consumer’sPerception Towards Online Purchase

Ms. Samira Sayed

Abstract

The internet revolution has brought about a paradigm shift in the way things are done. The

internet and worldwide web (www) have dramatically changed the way consumers seek and

use information. Along with the Internet an opportunity has emerged, the possibility to make

purchases online is called Electronic Commerce (E-commerce).With increasing internet

literacy, the prospect of online shopping is increasing in India. Online shopping is more

accessible than it has ever been. The aim of this study is to understand the perception of the

consumer’s perception towards online shopping. The study of consumer’s perception will

help domestic retailers who hope to or has already entered the field to apply marketing

strategies.

Key words: E-Commerce, Online Shopping, Demographic Factors, Consumer Perception.

Introduction

Today Internet is not only a networking media, but also as transaction medium for consumers

at global market in the world, and becomes dominant retailers in the future. Internet is

changing the way consumers shop and buy goods and services, and has rapidly evolved into a

global phenomenon. Many companies have started using the Internet with the aim of cutting

marketing costs, thereby reducing the price of their products and services in order to stay

ahead in highly competitive markets. Companies also use the Internet to convey

communicates and disseminate information, to sell the product, to take feedback and also to

conduct satisfaction surveys with customers. Electronic Shopping also known as Online

Shopping is a recent phenomenon in the field of E-Business and is definitely going to be the

future of shopping in the world. Most of the companies are running their on-line portals to

sell their products/services on-line. Though online shopping is very common outside India, its

growth in Indian Market, which is a large and strategic consumer market, is still in line with

∗ Assistant Professor & Course Co-ordinator B.com Accounting &Finance, K.P.B.Hinduja College ofCommerce, Mumbai.

23

the global market. The potential growth of on-line shopping has triggered the idea of

conducting a study on on-line shopping in India.

Consumer is the subject of market and the critical strength of existence and development of

enterprise. The consumer demand affects an enterprise’s marketing decision fundamentally,

which is the basic consideration for an enterprise choosing the marketing strategy and tactics.

In order to understand the driving forces toward online shopping it is important to recognize

consumer’s perception about online shopping. The study aims at understanding consumer’s

perception towards online purchase.

Objectives of the Study

• To understand the consumer’s perception about online purchase.

• To examine the various factors affecting consumer’s perception towards online purchase.

Research Methodology

In order to achieve the objectives of the present research the data / information required are

collected from the different sources. For the study the data has been collected from primary

as well as secondary sources.

Primary data is collected with the help of a structured questionnaire. Samples were collected

from consumers and buyers of online shopping in which the total sample size of respondents

are 250. For the present study, non-probability sampling technique was used.

The secondary data is collected from various published sources such as books, journals,

newspapers etc.

Results and Discussions

In order to understand the customer’s perception towards online shopping the questions on

demographic profile of the respondents like age, gender, qualification, marital status,

profession and income level were asked. The questionnaire also consist questions related to

the factors that influence online purchase decision. In addition to these questions, there were

various statements asked to the respondents related to the preference of choices for online

purchase, perception of the risk factors which are part of online shopping. In few of the

questions the respondents were asked to rate them on Likert Five Point Scale.

24

1. Demographic Profile

These questions were used in order to establish the consumer demographics. They were used

to find out the respondents age, gender, qualification, profession, marital status and family

income.

1.1 Age of the Respondents: Age was included to find out the significant relationship

between the various factors that influences the various age groups. The different age group

was set up and the respondents were asked to choose from these groups.

Table 1

Age of the Respondents

Age Group Percent15years -19 years 30.820 years -29 years 48.030 years -39 years 16.440 years and Above 4.8Total 100

Source: Compiled From Primary Data.

From the above Table 1, it is observed that 48 per cent of the respondents are from the age

group of 20-29. The age group 15-19 reflects 30.8 per cent of the total respondents. Overall

78.8 per cent of the respondents are in the age group of 15-29.

1.2 Gender of the Respondents: Gender was included in the survey in order to find out if

there is a difference between men and women concerning the beliefs towards the factors.

Table 2

Gender of the Respondents

Gender PercentMale 56.4Female 43.6Total 100Source: Compiled From Primary Data.

Table 2 shows the distribution of the male and female respondents. The distribution of

respondents shows a majority of male respondents (56.4 per cent) as compared to the female

respondents (43.6 per cent)

25

1.3 Qualification of the Respondents: The following table 1 shows the qualification of the

respondents.

Table 3

Qualification of the Respondents

Sr. No. Qualification Frequency Percentage1 Undergraduate 93 37.22 Graduate 104 41.63 Post Graduate 44 17.64 Others 9 3.6

Total 250 100Source: Compiled From Primary Data.

It is observed that 41.6 per cent of the respondents are graduates. Further 37.2 per cent of the

respondents are undergraduates. There are 17.6 per cent of the respondents who have done

their post-graduation in their respective streams. In terms of educational qualification,

graduate respondents dominate the sample.

1.4 Marital Status of the Respondents: In this question the respondents were asked about

their marital status in order to understand how the decision of online purchases are influenced

or taken.

Table 4

Marital Status of the Respondents

Sr. No. Marital Status Frequency Percentage1 Single 195 782 Married 52 20.83 Divorced 3 1.2

Total 250 100Source: Compiled From Primary Data.

From the above frequency Table 4, it is observed that 78 per cent of the respondents are

single. 20.8 per cent are married and 1.2 per cent of the cases are of divorced.

1.5 Products Purchased Online: In order to understand the types of items bought mostly

online by the respondents they were asked to select the items from the various options given.

The options included books, electronic products, apparels, music/videos, soft wares, food

items and others. They were allowed to choose more than one items for this response.

26

Table 5

Items Purchased Online

Items Percentage

Books 24.8Electronic Products 70.8Apparels 39.2Music/Videos 3.6Softwares 10.4Food Items 14.8Others 40.8

Source: Compiled From Primary Data. (Multiple responses were allowed)

From the above data it is observed that 70.8 per cent of the responses have purchased

electronic items online. Nearly about 40.8 per cent of the respondents have purchased other

items from online shops. Respondents (39.2 per cent) have replied that they also purchase

apparels online. It is however observed that 14.8 per cent respondents also prefer buying food

items online.

2. Factors Affecting Consumer’s Perception towards Online Purchase: There are various

factors that affect the consumer’s perception while making online purchase. However, the

researcher has considered the following factors for the study purpose in the present light of

literature review. They were asked to give the ratings as Very Important, Important,

Moderately Important, Slightly Important and Not Important on a Five Point Likert Scale.

For the purpose of data analysis and interpretations very important and important responses

are clubbed together and considered as important.

2.1 Convenience/ Time Saving: Online shopping has grown in popularity over the years. It

is mainly because people find it convenient and easy to shop from their comfort of their home

or office. Shopping online is considered to be time saving activity. It is accessible 24x7 from

anywhere and at any time. The customers can also browse for products by category on the

websites.

27

Table 6

Convenience / Time Saving

Particulars PercentVery Important 32.4Important 35.2Moderately Important 18.8Slightly Important 9.2Not Important 4.4Total 100


It is observed from the data that the respondents have positively agreed that making an online

purchase is convenient as well as time saving for them. About 67.6 per cent of the total

respondents have replied convenience and time saving as important while doing online

shopping.

2.2 Best Deals: Online shopping has revolutionized the business world by making everything

available by the simple click of the mouse button. Best deals in online shopping include

grand online sale festival, prices off, premiums, combo offers. These deals tend to attract

consumers for online shopping.

Table 7

Best Deals

Particulars PercentVery Important 40.8Important 36.8Moderately Important 12.4Slightly Important 5.6Not Important 4.4Total 100Source: Compiled From Primary Data.

From the above Table 7 it is observed that 77.6 per cent of the respondents have replied that

best deal is an important factor which they consider while shopping online.

2.3 Product Comparison Available: Consumers while making an online purchase compare

the prices, products, services offered, discount offered etc. of the products and services which

they intend to buy.

28

Table 8

Product Comparison Available


Majority of the respondents (76 per cent) feels that product comparison is an important factor

for consideration while doing online shopping.

2.4 Product Review: Product reviews are on shopping sites which gives customers an

opportunity to rate and comment on the products they have purchased. Other consumers read

these reviews while making a purchase decision. Often ratings are also given by the existing

online customers which helps the other customers. Review of the products also gives

information about the overall experience of the consumers while making the online

purchases.

Table 9

Product Review Available



It is observed from the data that 80.8 per cent of the respondents consider this as very

important factor in online shopping. Thus, it can be concluded that product review plays a

very crucial role in online purchase decision. It is an influencing factor in online shopping.

2.5 Assurance of On Time Delivery: In order to understand whether timely delivery of the

product in online shopping is important for the respondent, the question was asked to them.

29

Table 10

Assurance of On-Time Delivery


From the above data it is observed that 46.4 per cent customers value this factor as very

important and 36.4 per cent as important factor while making online purchase.

2.6 Easy Return Policies: Return policies help the customers to return or exchange

unwanted or defective good purchased by them. Return policies are included in customer

services by the retailers. The respondents were asked a question whether fair and easy return

policies are important factor in online buying.

Table 11

Easy Return Policies



The result showed that 85.6 per cent of the respondents feel that it is important factor. This

shows that fair return policies of the online retailers affect the customer’s motivation for

online purchase.

2.7 Mega Sales / Discounts Available Online: In order to attract consumers online

marketing companies’ offers flashy discounts and also roll out with their annual mega sale

offers. Online companies come out with mega sales during important holidays like The Great

Indian Sale of Amazon or Big Shopping Day Sale of Flipkart etc. During the time of mega

30

sales there are better deals and combo offers available online. Such deals attract customers to

make online purchases.

Table 12

Mega Sales / Discounts Available Online

Decision PercentYes 85.6No 14.4Total 100


About 85.6 per cent of the total respondents have agreed that mega sales / discounts influence

their online buying behaviour.

2.8 Safety of Payment: It is observed that in online shopping customers are more concern

about transaction security. From the point of view of the customers, risk perception of online

shopping majorly concerns transaction security which includes the privacy and security of

customer’s personal and financial information.

Table 13

Safety of Payment



From the above data it is observed that 73.2 per cent of the respondents have agreed that

safety of payment is a crucial factor for making online purchase.

2.9 Refund Policy: In online shopping customers look for hassle free refund policy.

Therefore this question was included in the study in order to understand whether refund

policy has an impact on online purchase decision.

31

Table 14

Refund Policy


The result in Table No. 14 indicates that 76.8 per cent of the respondents agree that refund

policy is a risky factor and need to be given due consideration for them while shopping

online.

2.10 Warranty and Claims: Customers are aware of warranty issues therefore they would

like to act more cautiously while making an online purchase. The collected data from the

respondents indicates that respondents mostly look for better warranties and claims while

purchasing the product online.

Table 15

Warranty/Claims



The above Table No. 15 indicates that out of total number respondents, 74.4 per cent are

highly concerned about the warranties given by the online stores and feels it important factor

influencing online purchase decision.

2.11 Delivery of Goods on Time: It was asked to the respondents whether the goods were

delivered in stipulated time mentioned in the online store. This question was asked to the

respondents in order to understand how important is on time delivery of goods for the

customers and whether it is a major factor influencing customers online purchase decision.

32

Table 16

Delivery of Goods On-Time

Particulars PercentVery Important 20.8Important 56Moderately Important 19.2Slightly Important 3.6Not Important 0.4Total 100


Majority of the respondents (76.8 per cent) feel that delivery of goods on time after making

an online purchase is important. And also one of the crucial factors affecting customer’s

perception while making an online purchase.

Findings of the Study

Online customers consider various factors while making online purchase. All the factors are

indicating influence in online shopping however product review available on online stores,

assurance of on time delivery and easy return policies are major influencing factors in online

shopping. It influences the purchase decision of the online customers.

7.3 Conclusions

Online Shopping is more accessible than it has ever been in the digital era with the

introduction of smartphone sand tablets. One of the key and significant factors in online

shopping is customer satisfaction. Understanding customer’s need for online selling has

become challenge for marketers. Specially understanding the consumer’s attitudes towards

online shopping, making improvement in the factors that influence consumers to shop online

and working on factors that affect consumers to shop online will help marketers to gain the

competitive edge over others. One of the key and significant factors in online shopping is

customer satisfaction. Perception towards online shopping is getting better. The present

research study has focused on factors influencing consumer’s perception towards online

purchase. All the factors are influential factors in online shopping; Delivery of goods on time,

product review available in online shops, assurance of on time delivery, easy return policies

are major influencing factors in online shopping. Demographic profiles of the online

consumers; gender, age, education and marital status have significant relationship with online

33

shopping. The overall results prove that the respondents have perceived online shopping in a

positive manner.

Bibliography

A. Books

• Whitely, David. (2000). E-commerce, Strategy, Technologies and Applications. New

Delhi: Hill Publishing Company Limited.

• Joseph, P.T. (2002). E-commerce - A Managerial Perspective. New Delhi: Prentice Hall

of India Private Limited.

• Diwan, Parag. & Sharma, Sunil. (2000). E-commerce – A Managers Guide to E-Business.

New Delhi: Excel book Publications.

• Kalakota, Ravi. & Marcia, Robinson. (2000). E-Business – Road Map for Success.

Chennai: Addison-Wesley Publication.

• Massachusetts. (1999). Electronic Commerce- Online Ordering & Digital Money. Jaico

Publishing House.

• Kumar, Manish. Kanti, Tushar. and Singh, Nidhi. (2011). E-Banking Concepts and

Definitions. New Delhi: Savera Publishing House.

• Agarwal, Kamlesh. & Amit Lal, Diksha. (2000). Business on the Net – An Introduction to

the What’s and How’s of E-Commerce. New Delhi: Macmillan India Limited.

• Kumar Pawan, Electronic Shopping: A Paradigm Shift in Buying Behaviour Among

Indian Consumers, December, 2012.

• Seda Yoldas, A Research about Buying Behaviour of Online Customers Comparision of

Turkey with UK, 2011.

• Jongeun Kim, Undertsanding Consumers’ Online Shopping and Purchasing Behaviours,

July 2004.

• Anders Hasslinger, Selma Hodzic, Claudio Opazo, Consumer Behaviour in Online

Shopping, 2007.

B. Journals

• Atchariyachanvanich Kanokwan, (2007), “How Consumer Lifestyles Affect Purchasing”,

Journal of Entrepreneurship Research, Vol. 2, p.63-78.

• Lina Zhou, Liwei Dai, Dongrong Zhang, (2007) “Online Shopping Acceptance Model”,

Journal of Electronic Commerce Research, Vol., 8 No. 1.

34

Marketing Strategies and Consumer Behaviour of Patanjali in the Fast

Moving Consumer Goods and Ayurveda SegmentsProf. Savina Shenoy

Abstract

Patanjali has been a brand that has made its way through in the market in a very interesting and

unique fashion. Patanjali’s launch of products in the FMCG and Ayurveda segments has lead to

major competition of long standing brands like Dabur, Colgate, Cadbury in the market.

Consumers of this millennium have become more concerned about their health and also inclined

to maintain quality of life which is reflected through the preferential consumption of those

products that protects the good state of their health as well as provide maximum satisfaction they

have become more inclined to Ayurvedic or Herbal therapy as alternative healthcare for natural

cure. This particular tendency has been responsible for phenomenal popularity of Baba

Ramdev’s Patanjali Ayurvedic products. In today's turbulent markets with changing customer

needs and growing product variety, Baba Ramdev has developed a unique blend of Ayurveda

and Vedic philosophy under the brand Patanjali to pull the market by offering value for his

customers. He has also smartly wringled through the FMCG market with his unique offerings of

products ranging from health care to food, cosmetics etc through competitive pricing and other

factors. The study aims to analyse the various trigger factors that have which have lead to the

revolutionary success of Baba Ramdev's brand Patanjali in the FMCG and Ayurveda segments.

The study aims at analysing patanjali’s marketing strategies which has lead to its huge success.

It also aims at understanding consumer behaviour which portrays perceptions, usage and attitude

towards products in both segments. A future prospect towards patanjali in the minds of the

consumers and the market can also be understood through the perception and usage factors of the

consumers.

Key Words: Competitive pricing, online shopping, target audience

Introduction

Patanjali’s entry into the market started in 2006 when Acharya Balkrishna partnered with Baba

Ramdev and entered into the Ayurveda space with its brand Patanjali Ayurveda Limited (PAL)

∗ Assistant Professor (BMS) - St. Andrews College of Arts, Science & Commerce, Mumbai.

35

with the objective of establishing science of Ayurveda and coordinating with the latest

technology and ancient wisdom. In April 2012 Patanjali Ayurved Limited had announced its

entry into the retail sector by launching 100 products to be expanded up to 800 including body

care, healthcare, home care, digestives, cosmetics, toiletries and other products. The growing

demand for herbal therapy to lead a healthy life prompted Yoga-Guru Ramdev to map the

portfolio of true needs of modern Indian which goes beyond food, clothing and shelter but strives

for a healthy life style.

From March 2012, Patanjali brand marked its entry into the herbal retail market and FMCG with

‘Swadeshi’ flavour of products ranging from body care, healthcare, home care, digestive,

cosmetics, toiletries etc. From then onwards Dabur, Sri Baidyanalh, Vicco Laboratories, Charak

Pharmaceuticals, The Himalaya Drug Company, Zandu Pharmaceutical, The Emami Group,

HUL, P&G are facing intimidation from a home - grown and an absolutely `Swadeshi

competitor, Patanjali Ayurved Limited. Thus Home-grown Patanjali Ayurved Ltd. (PAL) is

growing rapidly, giving the much-older established players in the fast moving consumer goods

(FMCG) segment and Ayurveda segment a run for their money.

Patanjali’s market entry has been a challenging one to other FMCG and Ayurveda companies

eating up major market share of long standing brands like Cadbury,Dabur,Colgate Palmolive etc

through its effective marketing mix offerings.Thus the study aims to analyse the marketing

strategies of Patanjali as well as the consumer behaviour towards the brand that is making the

brand a major threat to other competitors in the FMCG and Ayurveda segments.

Objectives of the Research

• To understand the marketing strategies of Patanjali in the FMCG and Ayurveda sector.

• To understand consumer behaviour towards Patanjali’s FMCG and Ayurvedic Products.

• To understand Patanjali’s future market prospects in the FMCG and Ayurveda Segments.

Methods of Survey

With the help of primary as well as secondary data, information is collected.

1. Primary Data- is collected through Questionnaire method, observation and interviews.

Sampling method-

36

2. Secondary Data- is collected through the published literatures like Educational Institute’s

journals, Newspapers, Magazines and Journals, Various reference books, and Websites.

Market Entry Strategies to Overcome Challenges

Although the company was incorporated in 2006, the background work of identifying

promotion strategies, products, pricing started way earlier.

1. Patanjali has introduced FMCG products to diversify in the market. The Indian FMCG

market has a wide range of customers and with competitors all the categories although they

have similar products with similar prices. Patanjali’s products sets itself apart by claiming and

proving that all its products in the FMCG space ranging from jam, salt, chyawanprash,

shampoo, detergents etc. are made of natural ingredients and don’t have any side effects at

all. It claims it uses herbo-minerals to manufacture its products and thus sets itself apart.

2. Patanjali Ayurveda medicines claims it has had made achievements in treating thousands

suffering from diseases like osteoarthritis, rheumatoid arthritis, osteoporosis , age related

mental stress etc. Baba Ramdev has set apart his ayurveda category by producing medicines to

cure unbeatable diseases like cancer etc. The products are sold to the customers specially after

receiving advice and counseling from the doctors present in the chikitsalayas. All these factors

set Patanjali’s ayurveda product segment apart.

3. Patanjali's objective is to make products available to the consumer at the most reasonable

price, and therefore most of its products come at a substantial discount to existing alternatives.

However a mix of skimming and penetration is used. Examples of low price products and

competition; Chyawanprash, one of Dabur’s flagship product is more expensive than that of

Patanjali’s. Similarly, Honey is priced at 43% lower than Dabur. The Company has uprooted

Maggi from its ‘numerouno’ status in the snacks segment, with Patanjali’s Atta noodles being

offered at 36% discount to the Maggi’s Atta version of Maggi noodles, thus competing with

Maggi in a major way.

37

Source : Edelwise Patanjali Report

4. Patanjali Ayurveda’s products are available on 20-40% cheaper prices in

comparisons of MNC products. Higher pricing of MNC’S are due to their expanses for

hiring Brand ambassadors, heavy market promotions expanses etc. In case of Patanjali

Ayurveda, Baba Ramdev himself played a well-defined role of Brand Ambassador for

Umbrella Brands. Baba Ramdev introduced the value for money concept for his

ayurveda products which lead to its huge success. The revenue for 2014-15 of Patanjali

Ayurveda is bigger than Jyothi Laboratories, the maker of Ujaala and Emami.

Patanjali’s ayurvedic products (healthcare products for blood pressure, skin diseases,

joint pain, etc) - clocked a turnover of Rs 2,030 crore in FY15 with an EBITDA

(earnings before interest, taxation, depreciation and amortization) of around 20%.

5. Patanjali products is been sold at every Yoga camp that is held by Baba Ramdev not

only making his products accessible to the right target audience but also making them

aware about his various products and inducing purchase through his Yoga camps.

6. An exclusive store network proved a winning strategy. It currently has nearly

10,000 consumer touch points as “Chikitsalayas” (Dispensaries) and “Aarogyakendras”

(Health centres), these numbers are ever increasing and are operated by third party

vendors as exclusive Patanjali stores.

38

Other Strategies Used

1. Partnering with Future Group (Big Bazaar) and other multi retail malls:

In October, 2015, Patanjali partnered with the Future Group, to offer the whole range of

products through Big Bazaar outlets across the country. Thus Patanjali used multiple

distribution channels, from company-owned stores that exclusively sell the brand, to

normal stores, to modern retail outlets like Big Bazaar, Reliance Retail, HyperCity etc.

2. Patanjali Online Shopping Website “(http://patanjaliayurved.net/)”

Patanjali sells its products through its website Patanjali.net and offers products ranging

from groceries, health and nutrition supplements, toiletries etc. It provides for free

shipping facilities with an easy payment mode with credit card,debit card,net banking

and cash on delivery options. Such distribution facility makes it easy for the consumers

to purchase product.

Patanjali’s products are also available on other online shopping sites like;

(bigbasket.com, askmegrocery.com, amazon.in, shopclues.com, flipkart.com,

snapdeal.com, swamibabaramdevmedicines.com, ebay.com etc.)

3. Patanjali Mobile App

Patanjali has also launched a mobile application which allows customers to locate

nearby outlets that are selling Patanjali products and also facilitate online ordering of

Patanjali’s Ayurveda and fast moving consumer goods.

Being seized of the fact that that there is high demand for its products, Patanjali is now

offering separate distributorship for food and cosmetics compared to the earlier system

when one distributor managed both. Also, the company is giving distributorship at the

district, tehsil and mandi levels, which shows its confidence on its the growth trajectory

and demand for its products.

4. Export to Foreign Countries

A New York Times article called him “An Indian, who built Yoga Empire, a product

and symbol of the New India.” Baba Ramdev is not only bringing the age old Indian art

of meditation and exercise but also a wide range of Patanjali’s Products in the U.S

,Canada ,U.K and other international markets.

http://patanjaliayurved.net/

39

Promotional Strategies

1. Word of Mouth Strategy on Market Entry

Patanjali remains perhaps the only company in the FMCG space that did not rely on

advertising for its scalability during its nascent years. Word of mouth publicity and

powerful endorsements by Baba Ramdev via his yoga camps built scale.

2. Baba Ramdev’s Controversial Popularity as a means of Market Entry

According to an article in forbes October 12, 2015 the Patanjali saga began with a

humble setup linked to India’s best export to the world: Yoga. Back in 2003, on a

channel called “Aastha TV” Baba Ramdev gave free yoga lessons and was also

involved in cases of black money, surrounded by controversies, brusque allegations of

tax evasions and labour law violations. His close associate Acharya Balkrishna

harboured a dream of amalgamating the yoga guru’s popularity and his knowledge of

ancient Ayurveda with best of breed technology. The duo then began manufacturing

medicinal products and, slowly but steadily, ventured into segments like dental care,

cosmetics, and food.

3. Partnering With Advertising Campaigns for Expansion

The company had low advertising spending initially. With hostile market conditions

and mushrooming competition, the company then started relying on a blitzkrieg for

advertising campaigns directed at end-consumers. Things are changing though.

Patanjali has hired two top advertising agencies McCann and Mudra to prepare the

business for the next phase of growth.

4. Print Advertisements:

Patanjali has increased its advertisements in the print media in various well know

newspapers. Including regional and local newspaper. Patanjali has adopted the unique

information‐ based advertising for its print media. For instance, the company highlights

the positives of cow’s ghee, which automatically helps sale of Patanjali Ghee. In the

recent past, the company’s print advertising has seen a marked increase.

5. Television Advertisements:

Patanjali spent less on the making of its television advertisements and stuck to a very

simple format. However as the business has seen success more focus is put on

television advertisements .Reliance Securities says that Patanjali has stepped up its

advertising and promotional spend and was one of the top three brands advertised on

television in last week of November 2015 as per Broadcast Audience Research Council

40

(BARC). The brand's marketing related update that it is focusing on advertising and has

kept aside Rs. 300 crore for advertising and promotion.

6. Social Media Sites Advertisements (Facebook, Twitter etc.)

Patanjali’s launch was a new hot topic on social media websites, with advertisements

,news articles flashing on websites like facebook the brand gained its awareness. Baba

Ramdev’s yoga page on face book kept flashing updates on Patanjali’s products being

launched and its upcoming promotion updates.

Brand “Patanjali” generated around 15000 conversations on Twitter in the period

between August 2015-January 2016, according to data compiled by social media

analytics firm Blue Ocean Market Intelligence.

7. Patanjali’s Promotion Through Supporting ” MAKE IN INDIA” Campaign

Baba Ramdev supported Prime Minister Narendra Modi's” Make in India”

campaign .Baba Ramdev claims that Patanjali is a pure brand that supports the Make in

India Initiative and claims that the brand would result in a great economic boost for the

country. Through his support in a mass campaign held by the prime minister he

promoted Patanjali as the perfect Make in India product and created a top of mind

awareness in the minds of the consumers.

8. Patanjali’s Promotion through Political Support:

In an interview with “ET NOW” in a show called Brand Equity, Baba Ramdev changed

his support towards Prime Minister Narendra Modi and claimed he had political

support to promote his brand mostly through the Congress Party, who provided him

with the motivation and resources to promote Patanjali to all states in India . Baba

Ramdev continues to receive huge funding and political backup to promote his products

not only in India but in international countries too which is a major advantage for his

brand to be successful.

Patanjali’s Market Disruption with Competitors

1. Patanjali and HUL (Ayurved and Toiletries):

According to an article in the Economic Times dated 22nd November 2015, HUL is

hitting back at the fastest growing FMCG upstart in India, Patanjali Ayurved with the

launch or rather re-launch of Ayush a set of eight ayurvedic products.. Patanjali is also

a threat to HUL in the toiletries and personal care products.

41

2. Patanjali and Nestle (Maggi Noodles):

According to an article in the economic times dated Jan 19 2016, while nestle was

under the scanner for product quality Patanjali took advantage to launch their own

noodles thus giving tough competition to Maggi. They also adopted a low pricing

strategy compared to Nestles Atta noodles.

3. Patanjali and Sri Sri Ayurveda (Ayurvda Brand):

According to an article in livemint 20th Feb 2016 Patanjali is also posing to be strong

competition to the Art of Living pioneer Sri Sri Ravishankar’s FMCG Company Sri Sri

Ayurveda. Both are in a constant battle to develop and innovate new products.

4. Patanjali and Colgate (Toothpaste):

IIFL states that Patanjali’s highest impact will be on Colgate, since it has gained

substantial traction in oral care. Patanjali’s” dant kanti” is taking up Colgate’s market

share. Baba Ramdev, has garnered a 4.5% market share in the toothpaste segment, a

report by Kotak Institutional Equities.

5. Patanjali with Mondelez and Glaxo Smith (Bournvita and Horlicks):

According to the Hindu 16th Jan, 2016 Patanjali’s Power Vita is a great concern for

Cadbury Bournvita and Glaxo Smith’s Horlicks as the market of Patanjali is growing at

a rapid pace in the health and nutritional drinks segment.

6. Patanjali and Dabur (Honey, Chywanprash) :

Patanjali will have high market shares in categories such as honey (35%), ayurvedic

medicine (35%) posing as a severe threat to Dabur as per and article in “The Hindu”

dated 17th Jan 2016,

7. Patanjali and ITC (Yippee Noodles):

Patanjali is also taking up market share of ITC’s Yippee Noodles after posing a threat

for magi noodles. ITC is on a constant lookout to keep its product in the minds of the

consumers as per The Economic Times dated 14th June 2015.

8. Patanjali Britannia and Parle (Biscuits):

Patanjali is also a major threat to Britannia and Parle in the Biscuits segments.

Patanjali’s nutty biscuits and Marie biscuits segment is a great threat to Britannia. and

Parle ,thus taking up major space in the Britannia and Parle FMCG segment as per The

Economic Times dated 28th December 2015.

42

Data Analysis and Interpretation

Table 1

Respondents Awareness towards Brand Patanjali

Sr. No. Options Percentage

1 Advertisements (Newspaper, T.V) 24

2 Word of mouth 23

3 Follower/Devotee of Baba Ramdev and Acharya

Bal Krishna

15

4 Saw it in the store/supermarket 11

5 Social Media Sites 27

Total 100


Table 1 shows that 27 per cent of the respondents came to know about brand Patanjali

trough social websites while 24 per cent reported that they had seen the

advertisement.in various newspapers.

Table 2

Product Category Purchased by the Respondents

Sr. No Particulars Number of

Respondents

Percentage

1 FMCG Category 40 40

2 Ayurveda Category 34 34

3 Both Categories 26 26

Total 100 100


The above Table reveals that 40 per cent of the respondents have purchased products

from FMCG category while 34 per cent of the respondents have purchased ayurvedic

products.

43

Table 3

Respondents Preference towards Patanjali Products

Sr. No. FMCG Product Category Percentage

1 Patanjali Atta Noodles 19

2 Patanjali Desi Cow Ghee 12

3 Patanjali Pure Honey 9

4 Patanjali Mixed Fruit Jam 8

5 Patanjali Special Chyawanprash 7

6 Patanjali Marie biscuits 5

7 Aloevera Juice 4


Table 3 shows that 19 per cent of the respondents prefer ‘Patanjali Atta Noodles’ while

12 per cent of them prefer ‘Patanjali Desi Cow Ghee’. 9 per cent of the respondents

prefer to purchase ‘Patanjali Honey’

Table 4

Respondents Preference towards Ayurveda Products

Sr. No. Ayurveda Product Category Percentage

1. Dant Kanti 12

2. Aloe Vera Gel 9

3. Neem Tulsi Face Wash 6

4. Divya Dant Manjan 5

5. Multani Mitti Body Cleanser 4

Total 100


Table 4 indicates that 12 per cent of the respondents prefer to use Dant Kanti while 9

per cent of them prefer to use Aloe Vera Gel.

44

Table 5

Reasons for Purchase of Patanjali Products

Sr. No. Reasons Percentage

1 Follower of Baba Ramdev and Acharya Balkrishna 15

2 Quality 18

3 Quantity 8

4 Price as a factor 20

5 Belief in Swadeshi Goods 3

6 Curiosity to try the product 10

7 Recommendation by Others 14

8 Advertisements 12

Total 100


Table 5 suggests that 20 per cent of the respondents purchased Patanjali products on

account of reasonable price while 18 per cent of them purchased on account of good

quality. It is interesting to note that 15 per cent reported that they were the followers of

Baba Ramdev and hence purchased the products.

Table 6

Purchase Pattern of the Respondents


Table 6 shows that 42 per cent of the respondents have been buying the

products for more than six months while 33 per cent of the respondents have

been buying for more than a year.

Sr. No. Options Percentage

1 Less than 3 months 25

2 6 months-1 year 42

3 More than a year 33

45

Table 7

Satisfaction Level of the Respondents

Sr. No. Particulars Percentage

1 Satisfied 65

2 Neutral 24

3 Dissatisfied 11


Table 7 specifies that 65 per cent of the respondents were satisfied while only 11 per cent of

the respondents were not satisfied with the products.

Table 8

Respondents Preference to Continue Using the Product

Sr. No. Particulars Per cent

1 Definitely Use 89

2 Definitely not Use 11


The above Table reveals that 89 per cent of the respondents were keen on

continuing to use the products whereas 11 per cent reported that they were not

satisfied with the products and hence they wish to discontinue to use the

products.

Table 9

Respondent’s Reaction towards Recommendation of Patanjali Products

to Friends

Sr. No. Particulars Per cent

1 Definitely Recommend 80

2 Probably Recommend 9

3 Definitely Not Recommend 11


46

Table 9 shows that 80 per cent of the respondents would definitely recommend Patanjali

products to their friends and other family members while 11 per cent of the respondents

reported that they would definitely not recommend the products to their friends.

Table 10

Respondents Viewpoints towards Patanjali Products

Percentage of Respondents

Sr. No. Statement Agree Disagree Neutral

Opinion

1 Patanjali stands by its word of

providing pure and safe products

89 0 11

2 Patanjali provides quality goods at

low prices

92 0 8

3 Products of Patanjali are easily

accessible and available

51 42 7

4 Do you see Patanjali as a market

leader in the Ayurveda and FMCG

Sectors in the future, attracting the

world’s attention.

97 0 3


Analysis of table 10 indicates that 89 per cent of the respondents agreed that Patanjali

stands by its word of providing pure and safe products, while 92 per cent reported that

the company provides quality goods at low price. About 51 per cent agreed products of

Patanjali are easily available while 97 per cent of the respondents agreed that in future

Patanjali can be seen as a market leader in the Ayurveda and FMCG sectors.

Conclusion

It can be found that consumers have mostly selected the brand Patanjali because of its

offering of quality along with low prices. It can also be inferred that Patanjali’s

increased advertising is bringing in new consumers to taste and try the products just out

of mere curiosity. Word of mouth strategy has also worked out excellently for the brand

47

to become a huge success in both segments. Patanjali’s product awareness is also

increasing day by day, as consumers are getting aware and trying different products

there is a steady shift seen in brand loyalty of competing brands. Majority of people

would recommend and continue using this brand in the future. The consumers are also

getting the products now through online means apart from direct distribution.

Patanjali’s vision of being a Top FMCG and Ayurveda company is forecasted as a

dream come true as consumers believe in the potentials and positives of the brand,

however the restart of the swadeshi movement is not well accepted by the consumers.

Patanjali has been successful in cracking maximum market share as it can be seen that

consumers are steadily moving towards Patanjali. Thus Patanjali is seen fulfilling the

consumer’s needs and wants along with the strong implementation of the brands

effective marketing mix strategies, attracting and inducing positive consumer behaviour

towards Patanjali’s products in both the FMCG and Ayurveda segments.

Recommendations and Suggestions

Patanjali has managed to stir a positive wave across both FMCG and Ayurveda

segments however the brand has some deficits in certain areas. The brand should focus

a little less on the swadeshi tag it has attached to its products as most consumers do not

consider it very favourable and believe that it would not make a major difference to

them. They would also like Patanjali to compete with international standards according

to livemint.com.

Patanjali should try to produce better packaging for its products as the packaging done

for its products is of low quality material thus giving the product a very cheap and low

quality feel which consumers dislike by all means and have complained on a consumer

complaint website.

Some of Patanjali’s products were found with worms and insects, and was brought

under the scanner by a consumer in Haryana according to Indiatimes.com December

6th 2015 claiming that Patanjali’s storage and packing facility needs to be changed and

more improved.

48

Patanjali’s owners should be less involved and protect themselves from controversies

and any kind of political turmoil and should try to maintain a positive image of

themselves as by the end of the day the brand ambassador is linked with the brand’s

success.

Bibliography:

Khanna, R. (n.d.). Study on Patanjali. Global Journal of Management and Business Research

-E Marketing .

Mishra, R. (n.d.). Research and Reviews on Ayurveda brands. Scientific ,Technicial ,Medical

Journal .

Rana, P. (2015). Yoga Guru Baba Ramdev's Traditioal Remedies Takes on Big Brands in

India. Wall street Journal .

Rani, S. (n.d.). Trends of Patanjali Products. World Wide Journal .

Research, E. M. (2015). Patanjali Ayurved -Waiting in the wings.

Sharma, S. K. (n.d.). Patanjali Yogpeeth in Haridwar. Journal of Ayurveda and Integrative

Medicine .

Sinha, R. (2016). Patanjali Injurious to listed FMCg health.

Webliography:

http://www.business-standard.com/article/markets/patanjali-ayurved-targets-250-

revenue-growth-in-fy16-edelweiss-115100900788_1.html

http://madovermarketing.com/2016/02/07/baba-ramdevs-patanjali-is-now-the-biggest-

fmcg-marketer-beats-cadbury-parle/

http://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-

supplies-liquor/patanjali-eats-into-colgates-toothpaste-market-share/50766053

http://www.financialexpress.com/article/industry/companies/patanjali-to-clock-rs-

20000-cr-sales-in-fy20-iifl-report/187960/

http://forum.valuepickr.com/t/possible-disruption-by-patanjali-yogapeeth/497/13

http://www.digitalvidya.com/blog/patanjali-becomes-household-fmcg-product-after-

successful-on-page-optimization/

http://www.officechai.com/stories/baba-ramdev-as-entrepreneur-success-story/

http://www.ibtimes.co.in/ramdevs-patanjali-pips-cadbury-parle-be-indias-top-brand-

665790

http://www.business-standard.com/article/markets/patanjali-ayurved-targets-250-

http://madovermarketing.com/2016/02/07/baba-ramdevs-patanjali-is-now-the-biggest-

http://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-

http://www.financialexpress.com/article/industry/companies/patanjali-to-clock-rs-

http://forum.valuepickr.com/t/possible-disruption-by-patanjali-yogapeeth/497/13

http://www.digitalvidya.com/blog/patanjali-becomes-household-fmcg-product-after-

http://www.officechai.com/stories/baba-ramdev-as-entrepreneur-success-story/

http://www.ibtimes.co.in/ramdevs-patanjali-pips-cadbury-parle-be-indias-top-brand-

49

http://patanjalistores.com/about-us/#

http://www.thehindu.com/news/cities/mumbai/business/fastmoving-ayurvedic-

goods/article8187124.ece

http://patanjalistores.com/product-category/medicine/


http://www.moneycontrol.com/currency/reports/patanjali-ayurved-visit-note-report-oct-

01-2015-edelweiss-securities-94869.html

http://www.livemint.com/Companies/bPDiRqaNMFPS008HtbJKwM/Sri-Sri-Ravi-

Shankar-vs-Baba-Ramdev-the-new-consumer-produc.html


goods/article8187124.ece

https://www.edelweiss.in/research/Consumer-Goods--Sri-Sri-Gets-Aggressive;-

Patanjali-In-Making;-Sector-Update/31879.html

http://brandequity.economictimes.indiatimes.com/news/business-of-brands/is-patanjali-

eating-into-colgates-market-share/50765999

http://bullseye.in.com/markets/reports/patanjaliayurvedvisitnotereportoct012015edelwe

isssecurities-94869.html

http://www.pressreader.com/india/business-

standard/20151010/281625304132824/TextView

http://articles.economictimes.indiatimes.com/keyword/patanjali

http://www.outlookindia.com/magazine/story/the-big-baba-bazaar/295984

http://www.financenewscoverage.com/news/patanjali-ayurved-targets-250-revenue-

growth-in-fy16-edelweiss.html

http://www.adageindia.in/marketing/news/patanjalis-noodle-brand-to-take-on-maggi-

on-price/articleshow/49211161.cms

http://patanjalistores.com/about-us/#


http://patanjalistores.com/product-category/medicine/


http://www.moneycontrol.com/currency/reports/patanjali-ayurved-visit-note-report-oct-

http://www.livemint.com/Companies/bPDiRqaNMFPS008HtbJKwM/Sri-Sri-Ravi-


www.edelweiss.in/research/Consumer-Goods--Sri-Sri-Gets-Aggressive

http://brandequity.economictimes.indiatimes.com/news/business-of-brands/is-patanjali-

http://bullseye.in.com/markets/reports/patanjaliayurvedvisitnotereportoct012015edelwe

http://www.pressreader.com/india/business-

http://articles.economictimes.indiatimes.com/keyword/patanjali

http://www.outlookindia.com/magazine/story/the-big-baba-bazaar/295984

http://www.financenewscoverage.com/news/patanjali-ayurved-targets-250-revenue-

http://www.adageindia.in/marketing/news/patanjalis-noodle-brand-to-take-on-maggi-

50

Compensation Management in Unorganised Sector- A Study of Stone

Crushing Industries in Mandya District

Dr.Nagaraju C.

Abstract

The present study intends to find out the compensation problem among the employees in the

unorganised sector a study of stone crushing industries in Mandya District. Primary data were

collected by conducting direct interview using questionnaire through likert scale. All the

respondents were asked the same questions in the same fashion and they were informed the

purpose of study. The tool of data collection to be used in this study is through structured

questionnaire method; the necessary data is to be collected from 100 samples to be selected

randomly in Mandya District. Similarly the necessary data is also to be collected from 13

employers of stone crushing industries. The data will be selected as samples and the data sol

collected will be analysed using the appropriate statistical tools. The secondary data can be

collected from the journals, concerned websites and district industries manual. For this study

the samples were drawn using random sample method. The data collected through

questionnaire have been analysed and tabulated.

Introduction

Entrepreneurship is that capacity in an individual to innovate. It involves a whole range of

aptitudes like capacity to bear risks, to forecast prospects of enterprise, confidence and

competence in meeting unforeseen and adverse situation. An entrepreneur promotes a new

venture, raises the where withal for it, assembles various factors of production and sets the

business going. Hence economic development depends much upon entrepreneurship are

directly related for it is the entrepreneur who establish industrial units. For any country

industrialization should be a natural process. In India both the state and the centralisation is

on a few core areas in large scale sector. The medium and small scale sectors have not grown

to the level expected due to the absence of dedicated entrepreneurs. Hence the government

has assumed the responsibility of identification and promotion of entrepreneurs.

∗ Associate Professor of Commerce, Shanthi College, Malavalli-571430.

51

Need For Development of Entrepreneurship in India

• Accelerating the rate of economic development.

• Achieving the objective of balanced regional development by providing broad base to the

industrial development.

• Solving the problem of unemployment to some extent.

• Directing available resources towards non-traditional areas of investment.

The unorganized sector plays a pivotal role in Indian economy. More than 90% of the

workforce and at about 50% of the national product are accounted for by the informal

economy, a high rate of socially and economically underprivileged sections of the society are

concentrated in the informal economic activities. The high level of growth of the Indian

economy during the past 20 years is accompanied by increasing informalisation. There are

symptoms of growing inter linkages between informal and formal economic activities. There

has been new dynamism of the informal economy in terms of output, employment and

earnings. Faster and inclusive growth needs special attention to informal economy.

Sustaining high levels of growth are also intertwined with improving domestic demand of

those engaged in informal economy and addressing the needs of the sector in terms of credit,

skills, technology, marketing and infrastructure.

Contribution of the Unorganised Sector

Dominance of informal employment has been one of the central features of labour market

scenario in India. Though the unorganised sector employs the majority of the workforce, its

economic contribution is often neglected. Firstly, the output and low wages of informal

workers assist the growth of industries in many countries. Secondly, the output of informal

enterprise also contributes to economic growth.

The majority of the Sengupta Committee reports highlights that about 90% to 93% of work

force would be employed in the unorganised sector by 2017. This clearly indicates that the

contribution of the unorganised workers to the Indian economy is more significance. Hence

there is an urgent need to study the problems of unorganised workers.

52


The researcher has carried out review of literature relating to the compensation management

at micro and macro levels. A brief overview of the existing literature is as follows:

1. Keith Heart 1971 highlighted that landscape of the unorganized sector becomes

synonymous with the landscape of unregulated, poorly skilled and low paid workers.

2. NCEUS – National Commission for Enterprise the Unorganised Sector (2007)

explains that the country is currently a state of informalisation of the formal sector, where the

entire increase in the employment in the organised sector has been informal in nature from

1999-2005.

3. DB Squared, LIC, 2829 MCKEE circle – suite 119, Fayetteville, AR72703, USA 2001

explains that committed and ambitious employee acquisition and retention begins with

compensation management. They have also opined that best in class compensation

management requires comprehensive and systematic understanding of external factors like

employee’s data, job analysis and descriptions.

4. John Bats Clark and Pillips Henry Wicksted highlighted that wages are based upon an

entrepreneur’s estimate of the value that will probably be produced by the marginal workers.

Consequently workers are paid what they are economically worth. The result of this is that

the employer has not paid a large share of profit to the non- marginal workers.

5. John Davidson argued that wages are determined by the relative bargaining powers of

workers, and of employers when a trade union is involved. Basic wages, fringe benefits, job

differentials and individual differences tend to be determined by the relative strength of the

organisation and the trade union.

6. Marsh and Simon et al. have presented their views of wages and salary on the basis of

the employee’s acceptance of wage level and the internal wage structure etc.

Need For the Study

Government of India identified small scale sector as a priority sector and has announcing

policies of its sustainable growth. For any development a systematic and realistic planning is

essential for micro-industry, especially the development of unorganised sector. Indian

economy is characterized by the existence of a vast majority of unorganised labour

employment. The ministry of labour government of India has categorized the unorganised

sector under four groups:-

a. In terms of occupation

53

b. Nature of employment

c. Distressed categories

d. In terms of service categories

Scope of the Study

Unorganised sector is a labour intensive industry. Informal labour can be in self-employment,

casual wage employment and regular wage employment just as, it can be in urban as well as

in rural areas.

Compensation is a reward for the worker to work better and to join hands in the production

process to strengthen the productivity and in term oh help to earn more profit. The alarming

expansion of informal sector in recent times has adversely affected employment and income

security program. In our global cities like Bengaluru, Kolkata, Chennai, Mumbai etc. which

are being showcased as the new faces of an affluent and vibrant India. There are lakhs of

people who rely on manual labour for their own livelihood.

Globalization and resultant re-organisation of production change led to a situation where

production system are becoming increasingly a typical and nonstandard involving flexible

labour force engaged in temporary and part time employment which is seen largely as a

measure adopted by the employers to reduce labour cost in terms of job security and social

protection as they are derived any of the social protection measures stipulated in the existing

labour legislation.

Hence there is a wide scope for the study of compensation management in unorganised

sector. The present study restricted to study the compensation management of stone crushing

industries in Mandya district. There are 12 registered stone crushing industries running at

present, but there are a number of unauthorized stone crushing industries are found to be

functioning.

Objectives of the Study

1. To discover what the workers need most.

2. To find whether the needs are fulfilled.

3. To expose what aspect are more important.

54

4. To identify the areas that need more attention.

5. To assess the compensation management problem.

6. To suggest measures to sustain a sound wage policy.


This research will have a basis of primary and secondary data. As already mentioned

employees in the unorganised sector are vulnerable. Nearly 98% of workforce is unorganised.

The researcher has taken Mandya district (7 talukas namely Mandya, Maddur, Malavalli,

Nagamangala, Srirangapatna, K.R. Pet and Pandavapura) for his study. The study was

conducted in two stages namely,

1. Obtain the relevant information through questionnaire to employers managers; this was

mainly to provide an insight about employer perception in compensation management.

2. Collecting information through questionnaire to workers. The researcher has covered all

types of workers and he has adopted convenience sampling method to conduct survey of the

workers.

The following table highlight the estimated labour force in the unorganised sector.

Table 1

Estimated Labour Force

YearsGDP

growth rate%

Employment (million) percentage

Formal Informal Total Formal Informal

2004-05 Actual 32.79 368.35 401.13 8.17 91.832006-07 Actual 34.87 393.06 426.93 7.93 92.072011-12 9 34.54 453.13 487.67 7.08 92.92

7 34.18 442.18 476.36 7.18 92.835 33.83 431.4 465.23 7.27 92.73

2016-179 33.93 521.96 555.9 6.1 93.97 33.08 490.46 490.46 6.32 93.685 32.26 461.05 461.05 6.54 93.46

Source – Arjun Sen Gupta Committee Report

The date shows us that an estimated 93.46% of the labour force (at 5% GDP) will be

employed in the informal sector by the end of the 12th five year plan 2012-17.

The issues regarding unorganised sector is largely country specific and its many

manifestations are too been varied and analyzed in the context. Some of the most burning

issues to our study are, working conditions duration and durability of work, earnings, labours

55

rights and safety conditions at work. The National Council of Applied Economic Research

(NCAER) calculated that the informal economy or the unorganised sector generates about

62.5 of GDP, 50% of gross national savings and 40% of national exports. Numerous

legislations about to regulate the conditions of work and to create social security for the

workers of the organised sectors, but very few of them extend their scope to the vastly

unregulated unorganised sector.

Table 2

Details of Stone Crushing Units in Mandya District

Survey Analysis and Interpretation

Introduction – Compensation is one of many human recourse tools that organisation use to

manage their employees. For an organisation to receive its money’s worth and motivate and

retain skilled employees, it needs to ensure that its compensation system is not an island by

itself. It is important not only for an organisation to link compensation to the overall goals

and strategies, it is important that its compensation system aligns with its human resource

strategy. Needless to mention that, though the employees are the bread winners, but they are

like an earning son in the family.

56

There are 7 (seven) Talukas in Mandya district and 12 registered stone crushing units are

operating throughout Mandya district. Since no detailed study is attempted on this vital aspect

of compensation management the researcher has gone into the details of this critical issue.

For this purpose an attempt has been made to analyze the methods of wage payment, safety

and security, this was actually addressed through a survey conducted by him based on various

issues relating to compensation.

The hypothesis has been designed based on the pilot study and these are reflected in the

questionnaire and the schedule. The survey conducted would help him to comprehend the

SWOC analysis of stone crushing units with reference to compensation management. The

response collected from the respondents have been analysed which will help unearth the

findings on the study.

Hypothesis

1st Hypothesis

Perception differences about the salary and wages in the organization:

Having collected perceptions from the three categories of respondents, it is worth examining

the significance of differences in the perceptions of three categories of employees about the

paltriness of salary and wages in the organization. The following hypothesis is postulated to

measure the differences in perceptions:

H0: Salary and wages are not paltry

H1: Salary and wages are paltry

Table 3

Descriptive Statistics

N Mean Std.Deviation

Std.Error

95% ConfidenceInterval for Mean

LowerBound

UpperBound

VAR00003 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000

VAR00004 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000

VAR00005 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.0000

57

15000-25000 60 1.1000 .54306 .07011 .9597 1.2403Total 100 1.0600 .42212 .04221 .9762 1.1438

VAR00006 10000 10 3.8000 .42164 .13333 3.4984 4.101610000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 3.9800 .14071 .01407 3.9521 4.0079

VAR00007 10000 10 3.8000 .42164 .13333 3.4984 4.101610000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 3.9800 .14071 .01407 3.9521 4.0079

VAR00008 10000 10 4.0000 .00000 .00000 4.0000 4.000010000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 4.0000 .00000 .00000 4.0000 4.0000

VAR00009 10000 10 3.0000 .00000 .00000 3.0000 3.000010000-15000 30 3.0000 .00000 .00000 3.0000 3.000015000-25000 60 3.0000 .00000 .00000 3.0000 3.0000Total 100 3.0000 .00000 .00000 3.0000 3.0000

VAR00010 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000

VAR00011 10000 10 5.0000 .00000 .00000 5.0000 5.000010000-15000 30 5.0000 .00000 .00000 5.0000 5.000015000-25000 60 5.0000 .00000 .00000 5.0000 5.0000Total 100 5.0000 .00000 .00000 5.0000 5.0000

VAR00012 10000 10 4.0000 .00000 .00000 4.0000 4.000010000-15000 30 4.0000 .00000 .00000 4.0000 4.000015000-25000 60 4.0000 .00000 .00000 4.0000 4.0000Total 100 4.0000 .00000 .00000 4.0000 4.0000

VAR00013 10000 10 3.0000 .00000 .00000 3.0000 3.000010000-15000 30 3.0000 .00000 .00000 3.0000 3.000015000-25000 60 3.0000 .00000 .00000 3.0000 3.0000Total 100 3.0000 .00000 .00000 3.0000 3.0000

VAR00014 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000

VAR00015 10000 10 1.0000 .00000 .00000 1.0000 1.000010000-15000 30 1.0000 .00000 .00000 1.0000 1.000015000-25000 60 1.0000 .00000 .00000 1.0000 1.0000Total 100 1.0000 .00000 .00000 1.0000 1.0000

VAR00016 10000 10 5.0000 .00000 .00000 5.0000 5.000010000-15000 30 5.0000 .00000 .00000 5.0000 5.000015000-25000 60 5.0000 .00000 .00000 5.0000 5.0000Total 100 5.0000 .00000 .00000 5.0000 5.0000

Source: Field survey

The above table displays the mean score, standard deviation and standard error and other

statistics for the perceptions held by all the three categories of respondents.

The following table highlights the ANOVA results:

58

Source: Field survey

ANOVASum ofSquares

df MeanSquare

F Sig.

VAR00003 Between Groups .000 2 .000 . .Within Groups .000 97 .000

Total .000 99VAR00004 Between Groups .000 2 .000 . .

Within Groups .000 97 .000Total .000 99

VAR00005 Between Groups .240 2 .120 .669 .515Within Groups 17.400 97 .179

Total 17.640 99VAR00006 Between Groups .360 2 .180 10.913 .000

Within Groups 1.600 97 .016Total 1.960 99

VAR00007 Between Groups .360 2 .180 10.913 .000Within Groups 1.600 97 .016

Total 1.960 99VAR00008 Between Groups .000 2 .000 . .



Total .000 99










VAR00016 Between Groups .000 2 .000 . .


59

From the above table it is clear that all variables have p value of less than 0.05 except one

variable titled “compensation received is equal to the value of the work performed”. The

results indicate that there is a significant difference in the perceptions held by all the three

categories of workers as the observed significance level is less than 0.05 and it is evident

from the above analysis that the salary and wages are paltry.

2nd Hypothesis

Table Showing Workers Opinion towards Safety and Welfare Aspects of Employees inthe Organization

Sl. No. Questions/Statements MeanScore

StandardDeviation

1.Employee grievance redressal machinery is exist andfunctioning in the organization

3.00 0.000

2.The existence of a sound channel through which agrievance may pass for redressal if the previous stagehas found to be inadequate/unacceptable

1.00 0.000

3. Industrial accidents result a multiplicity of factors 4.00 0.000

4.The safety policies of the organization shoulddetermine by the management

1.00 0.000

5.Management and supervisor must be made fullyaccountable for safety performance

1.00 0.000

6.All employees should be given thorough training insafe methods of work and should receive continuingeducation and guidance

1.00 0.000

7.Safety must be given equal importance considerationwith that of other factors of production

3.00 0.000

8.Safety must be included in all phases of planning,purchasing, supervision and operation

3.00 0.000

9. Labour welfare is an important aspect of factory life 1.00 0.000

10.The purpose of providing welfare amenities is it bringabout the development of the whole personality of theworker

5.00 0.000

11.Occupational diseases are the results of physicalcondition and the presence of industrial poisonous andnon-poisonous dust in the atmosphere

1.00 0.000

12. Silicosis leads to painful death 4.00 0.000

13.Adequate facilities for emergency care and injuriessustained in the course of work

4.00 0.000

14.Proper first aid and treatment for occupational injuriesand diseases are exists

4.00 0.000

15.Provision for maintenance of adequate andconfidential medical records are made

4.00 0.000

Aggregate Mean score and Standard Deviation 2.67 0.000Source: Field Survey

60

The above table highlights that the mean score varies from 1.00 to 4.00 and standard

deviation results as 0.000. The aggregate mean score and standard deviation are 2.67 and

0.000 respectively. The aggregate standard deviation being equal to zero indicates

consistency in the views expressed by the respondents.

The respondents agreed that the existence of a sound channel through which a grievance may

pass for redressal if the previous stage is found to be inadequate/unacceptable, safety policies

are determined by the management, Management and supervisors are accountable for safety

performance, all employees should be given thorough training in safe methods of work and

should receive continuing education and guidance, labour welfare is an important aspect of

factory life and occupational diseases are the results of physical condition and the presence of

industrial poisonous and non-poisonous dust in the atmosphere (Mean Score 1.00).

Respondents made no comments for overall development of workers through welfare

amenities provided by the organization (Mean score 5.00).

Inference: The safety and welfare aspects of employees in the organization is not properly

followed and which is evident from the above analysis that the respondents disagreed with

safety and welfare aspects of employees in the organization (aggregate mean score 2.67).

3rd Hypothesis

Table Showing Workers Opinion towards Working Condition and Motivation to

Employees in the Organization

Sl. No. Questions/StatementsMeanScore

StandardDeviation

1.Development of better methods of production bylabour are responsible for the increase in productivity

5.00 0.000

2. More difficult a job, the higher are the wages 3.04 0.281

3.Managerial attitude have a decisive influence on thewage structure and wage level

4.00 0.000

4.Psychological and social factors have a significantmeasure for the compensation

1.00 0.000

5.Wage should be capable of effectively motivating theemployees

3.00 0.000

6.An incentive plan must consist of both monetary andnon-monetary elements

1.00 0.000

7. Timing, accuracy and frequency of incentives are the 1.00 0.000

61

basis of successive incentive plans

8.Profit sharing scheme helps to promote industrialharmony and stabilization of workers

5.00 0.000

9.Profit sharing scheme helps to eliminate waste in theuse of materials and equipment

5.00 0.000

10.Profit sharing scheme helps to instil a sense ofpartnership among employee and employers and toincrease employees interest in the company

5.00 0.000

11.Profit sharing scheme attract desirable employees andretain them, thereby reducing the rate of turnover andabsenteeism

3.00 0.000

12.Profit sharing encourage employers thrift and ensureemployee security and demonstrate some measure ofsocial justice to employees

3.00 0.000

13.

Company offers benefits and services to increase andimprove employee morale and creates a helpful andpositive attitude on the part of workers towards theiremployers.

1.00 0.000

14.Workers should not imagine that their only function isto secure higher wages and shorter hours of work andbetter working conditions

2.00 0.000

15.Harmonious working relations between labour andmanagement are essential for the smooth running ofthe organization

2.00 0.000

Aggregate Mean score and Standard Deviation 2.94 0.018Source: Field Survey

The above table highlights that the mean score varies from 1.00 to 5.00 and most of the

variable’s standard deviation results as 0.000. The aggregate mean score and standard

deviation are 2.94 and 0.018 respectively. The aggregate standard deviation being less than

zero indicates consistency in the views expressed by the respondents.

The respondents agreed that compensation management considers psychological and social

factors with proper incentive plans as it consist both monetary and non-monetary elements.

Best incentive plan is always based on timing, accuracy and frequency of incentives and

Company motivates its employees by offering benefits and services to increase and improve

morale and creates a helpful and positive attitude on the part of workers towards their

employers (mean score 1.00). Respondents made no comments for the profit sharing scheme

and its aspects adopted by the company (mean score 5.00).

Inference: The working condition and motivation to employees in the organization is not

good enough and which is evident from the above analysis that the respondents disagreed

62

with working condition and motivation to employees in the organization (aggregate mean

score 2.94).

Summary of Findings, Suggestions and Conclusion

In the previous chapter, the researcher could unearth various issues through a survey

conducted. As already stated the researcher has administered questionnaire and gathered

responses on various parameters envisaged in the questionnaire. The response has been

gathered both from workers and the employers/managers and placed in part I and part II in

chapter IV respectively, comprehensive survey conducted could help in tracing the following

findings.

1. 100% of the employees are of the opinion that compensation means base wage and

variable pay like bonus and incentives.

2. 100% of the workers opined that wages are paid at both on hourly basis and on daily rate.

3. 100% of the workers observe that wage events represent the money an average worker

makes in a geographical area or in his organization.

4. 98% of the workers stated that wage structure does not refers to wage and salary

relationship within a particular group.

5. 100% of the workers stated that the employer follows competency based wage plan.

6. 100% of the employee respondents stated that they are unaware of the concept equal pay

for both male and female workers.

7. 98% of the respondents observed that competency is an effective way for more

expectation.

8. 98% of the respondents agree that authority with a service of competency level can define

a clear progression path.

9. 100% of the workers observed that competencies are not difficult to define and easy to

measure.

10. 100% of the workers observed that the organization does not follow the principle that

good sales tend to pay higher wages than those which running at a loss.

Suggestions

The researcher has shown concern to ameliorate the compensation management in the

unorganized sector and has offered the following suggestions and all this has been drawn

based on the above findings.

63

1. One of the most important gender issues in compensation is equal pay for comparable

worth. The issue in unorganized sector is all about why women get paid less compensation

when compared to their male counterparts. Hence it is suggested to have an equitable practice

should be adopted for the recognition of individual differences in ability and contribution.

2. There should be a clearly established procedure for hearing and adjusting wage

complaints.

3. Wage should be sufficient to ensure for the worker and his family reasonable standard of

living. Workers should receive a guaranteed minimum wage to protect them against

conditions beyond their control.

4. Prompt and correct payments of the employees must be ensured and arrears of payment

should not accumulate.

5. For revision of wages, a wage committee should always be preferred to the individual’s

judgment.

6. Wage and salary payments must fulfill a wide variety of human needs. Hence it is

suggested to provide, housing facilities free education to employees ward etc.

7. Under the national labour relations Act, employees have a right to discuss their wages,

hours and other terms and conditions of their employment. As a result, there do no way that a

firm can keep anything away from public gaze.

8. It is suggested to enhance the effective workers participation in management.

9. Need for elimination of child labour.

10. Need for guidance and counseling.

Conclusion

1. Indian economy is to a great extent characterized by large number of people working in

unorganized sector as unorganized worker; transitional nature of the Indian economy,

disparity in education, skill and training some of the major factors abetting such a large

concentration of workers in an area where workers are more vulnerable.

2. NCEUS has noted that the employment in India can be meaningfully classified into:

a) Formal employment in the organized sector

b) Informal employment in the formal sector

c) Formal employment in the informal sector

d) Informal employment the informal sector

64

3. Amongst these form categories reports have shown that the Indian economy is largely

characterized by huge numbers of people employed informally in the unorganized sector.

Unrecognized sector has a pivotal role in the Indian economy in terms of its contribution to

GDP and employment, but the role of this sector is fully ignored. It is in his regard there an

urgent need to study the working conditions, safety and security wage and salary

administration of unorganized sectors with special reference to stone crushing units of

Mandya district.

4. The researcher has put effort in most utmost good faith to unearth the problems of

working in stone crashing units of Mandya district.

5. The study highlights the following points

1. There is a disparity between organized and unorganized working as regards the

compensation concerned

2. The wages paid in stone crushing industries is less than the wages of workers working

under MGNAREGA scheme of GOI (Mahatma Gandhi National rural employment

guarantees Act.

3. Literacy is one of the parameters to measure the level of entrepreneurship. Mandya district

is having comparatively good education infrastructure. There

Bibliography

1. Compensation management – www.ellimuniversity,ac.in

2. Personnel management – Text and Cases – C.B. Memoria and VSP Rao., Himalayas

Publishing House.

3. Management and behavioural processes – Saraj Kumar – Thakur publishers – Bangalore.

4. Handbook of perspective plan 2013-18 – Mandya district.

5. Report of the committee on unorganized sector statistic- national statistical commission

Government of India February 2012.

6. Compensation management – best practices.

A comprehensive assessment for extracting value from compensation analysis and practice –

DB squared www.dbsquared.com.

7. Unorganized sector – Arthapedia.

8. National commission for enterprises in the unorganized sector report.

(a) Social security for unorganized workers may-2006.

(b) Conditions of work and promotion of livelihood in the unorganized sector – August 2007.

www.ellimuniversity

www.dbsquared.com

65

A Study on Consumer Preferences towards Ola/ Uber Services with Special

Reference to Mumbai Ms. Jyoti Singh

Abstract

Growth and development in India has given an impetus to a competitive market. In Mumbai

Black and Yellow Taxis (Kali-Peelee) have been an existing means of transport among

Mumbaikar to travel to any part of the city. However, with the advent of Ola/ Uber in the

field of transportation, cut throat competition among taxis has become the order of the day.

Nowadays Ola/Uber are more in demand because of their convenience and easy booking as

compared to black and yellow taxis. People prefer to use black and yellow taxis for

commuting to their workplace. People have not fully shifted to Ola/Uber because of the surge

in pricing. Black and yellow taxis have several advantages over Ola and Uber despite the new

entrants' technological superiority. In case of black and yellow (kali peelee) taxis, no prior

booking is needed. No calls to make. The passenger just needs to stand near the road, wave a

hand, get in and the ride starts. This is how Mumbaikars have known black and yellow (kali

peelee) taxis. The current study tries to understand the consumer preference towards the use

of Ola/ Uber service.

Key Words: Convenience, flexibility, government-approved, surge pricing.

Introduction

Taxicabs arrived in 1911 to complement horse wagons. The black and yellow Fiat taxis in

Mumbai, are an integral part of the city's heritage and have been depicted in numerous

Bollywood movies. These metered taxis ply throughout Mumbai and have a monopoly from

Bandra to Churchgate on the Western line and Sion to Chatrapati Shivaji Terminus on the

Central line. Beyond Sion and Bandra auto rickshaws are not allowed and one has to hire a

taxi. However, between Sion to Thane and Bandra to Bhayandar, both taxis and auto

rickshaws ply. A mechanical meter decides the fare and is proportional to the distance

travelled.

∗ Post graduate student in Commerce.

66

ANI Technologies Pvt. Ltd., operating under the trade name Ola, is an Indian online

transportation network company. Ola was founded as an online cab aggregator in Mumbai,

but is now based out of Bangalore.

It was founded on 3rd December 2010 by Bhavish Aggarwal (currently CEO) and Ankit

Bhati. As in 2014, Ola provides different types of cab service ranging from economic to

luxury travel. The cabs are reserved through a mobile app. This cab service supports both

cash and cashless payment options with Ola money. It claims to clock an average of more

than 150,000 bookings per day and commands 60 per cent of the market share in India. In

November 2014 Ola also started on-demand auto rickshaw service on its mobile app in

Bangalore, Pune and few other cities.

Uber Technologies Inc. is an American multinational online transportation network company

headquartered in San Francisco, California. It develops, markets and operates the Uber

mobile "app", which allows consumers with smartphones to submit a trip request, which the

software program then automatically sends to the Uber driver nearest to the consumer,

alerting the driver about the location of the customer. Uber drivers use their own personal

cars. As in August 2016, the service was available in over 66 countries and 507 cities

worldwide. The Uber app automatically calculates the fare and transfers the payment to the

driver. Since Uber's launch, several other companies have replicated its business model, a

trend that has come to be referred to as ‘Uberification’.


A survey undertaken by Sanjay Jog, Business Standard, September 22, 2016, reveals that

80% commuters prefer Ola/Uber to regular taxis. About 11 per cent use Ola and Uber service

every day; 40 per cent use it several times a week; 15 per cent use it once a week, 13 per cent

use it once a month, while 21 per cent use it are not regular users. Moreover, 67 per cent

respondents have rated the behaviour of Ola and Uber drivers as ‘good’, while only nine per

cent rated auto drivers’ behaviour as good and only eight per cent had a good work for the

behaviour of black and yellow taxi drivers. 19 per cent commuters have

termed Ola and Uber drivers as ‘bad’, 47 per cent have a similar opinion about autos and 37

per cent for kali-peelee taxi drivers.

67

Mayank Jain, Scroll. In, Aug 09, 2016, How black and yellow cabs in Delhi and Mumbai

are trying to Beat Uber and Ola at Their Own Game

Mayank Jain in his article titled ‘How Black and Yellow Cabs in Delhi and Mumbai Are

Trying to Beat Uber and Ola At Their Own Game’ dated Aug 09, 2016 is of the opinion that

taxi associations have come together to take on the might of Uber and Ola by launching the

9211 app that allows customers to book black and yellow taxis using their smartphones. The

app, launched in January, also gives customers the option of calling for a cab through a call

centre. It charges government-approved fares starting at Rs. 22 for the first 1.6 kms. At

present, its customers can only pay in cash as the app does not offer an online payment

facility.


The Study was conducted to investigate the switching of consumer behaviour from black and

yellow taxis to Ola/Uber in Mumbai. Primary Data was used in the form of a questionnaire,

interviews and observation, which is a basic method of primary data collection, which

specifies the research objectives. Secondary Data has been collected by referring to articles

on this topic. A sample of 30 respondents were been selected and studied.

Objective of the Study

a) To understand the purpose for using Ola/Uber cab services by the respondents.

b) To analyse the prime reason for using Ola/Uber cab services as compared to taxis.

Significance of the Study

a) It will be helpful to those who want to use more Ola/Uber service.

b) It will be beneficial for the Ola/Uber company to know about consumer behaviour

towards their service.

Limitations of the Study

The study of switching of consumer behaviour from black and yellow taxis to Ola/Uber in

Mumbai is very vast topic but only few aspects were considered and sample size is only 30.

68

Data Analysis

1. Age of the Respondent

The age of the respondent indicates the age group of persons who travel more in Ola/Uber

cab services.

Table 1

Age of the Respondents

Particulars Frequency Percentage

Less than 25years 7 23.33

25years – 35years 10 33.33

36years – 45years 9 30.00

Above 45years 4 13.34

Total 30 100


Interpretation:

The above Table shows that 33.33 per cent of the respondents in age group of 25 years- 35

years prefer to travel in Ola/Uber cab services. 30 per cent of the respondents in the age

group of 36 years – 45years age; 23.33per cent were in the age group of less than 25 years.

About 13.34 per cent were in age group of above 25 years have Ola/Uber as their preferred

choice of taxi travel.

2. Gender

Gender plays a crucial role in understanding the frequency of using black and yellow taxis.

Table 2

Gender of the Respondents


Male 19 63.33

Female 11 36.67

Total 30 100


Interpretation

The above Table shows that, 63.33 per cent males and 36.67 per cent female use black and

yellow taxis It can be interpreted that males prefer to use Ola/Uber cab services as compared

to black and yellow taxis.

69

3. Occupation

The occupation of the respondents is an important variable to understand the use of

Ola/Uber cab services

Table 3

Occupation of the Respondents


Students 3 10

Housewives 6 20

Service 11 36.67

Businessmen/Professionals 10 33.33

Total 30 100


The above Table reveals that 36.67 per cent users of Ola/Uber belonged to the category of

persons in service; while 33.33 per cent of the respondents were business /profession; 20 per

cent of the respondents belonged to the category of housewives and 10 per cent were

students. The above analysis indicates that that service class and persons business/profession

use more of Ola/Uber services.

4. Important Factor Considered While Choosing the Mode of Transport

It was necessary to understand from the respondents about their views on the most important

factor considered by them while choosing the mode of transport.

Table 4

Important Factors Considered While Choosing the Mode of Transport


Safety 3 10

Price 17 56.67

Ease of Use (Convenience) 10 33.33

Total 30 100


As per the survey, 56.67 per cent of the respondents revealed that price is an important factor

while choosing any mode of transportation. They further reported that they preferred to use

Ola/ Uber on account of various discounts and coupons offered by the company. About 33.33

70

per cent of the respondents felt that convenience play an important factor while choosing a

mode of transportation. Only 10 per cent of the respondents indicated safety as an important

factor for choosing the mode of transport.

5. Usage of Ola/Uber Services

Use of Ola/Uber service depends upon the requirements of the respondents.

Table 5

Use of Ola/Uber Services


Solo 12 40

In a group (Family, Friends) 17 56.67

Sharing 1 3.33

Total 30 100


The above Table indicates that 56.67 per cent of the respondents use Ola/Uber cab services in

a group namely with family and friends. About 40 per cent of the respondents use the service

independently (solo). Only 3.33 per cent of the respondents who use Ola/Uber services

revealed that they prefer to share the services with others because it reduces the cost

considerably specially for long distances as the fare is divided among the passengers

travelling together.

6. Purpose of Using Ola/Uber Services

It was necessary to know the purpose of using Ola/Uber services. Table 6 analyses the

various reasons for using Ola/Uber services.

Table 6Purpose of Using Ola/Uber Service


Daily Commute to Workplace 2 6.67

Meetings 1 3.33

Airport & Railway Station 14 46.67

Personal Trips 13 43.33

Total 30 100


71

Table 6 indicates that 46.67 per cent of the respondent’s use Ola/Uber services for going to

the airport or railway stations; while 43.33 per cent of the respondents revealed that services

of Ola/Uber are used for personal trips. One of the reasons cited by the respondents was that

it was more comfortable and convenient to travel in such cars. About 6.67 per cent reported

that they use these services for commuting daily to work while 3.33 5 use the services of

Ola/Uber to attend urgent meetings.

7. Reasons For Giving Priority To Ola/Uber

It was necessary to know the reasons for giving priority to the use of services of Ola/Uber.

Table 7 shows the various reasons for giving priority to use the services of private taxis.

Table 7

Reasons for Giving Priority to Ola/Uber


Non-availability of Parking 1 3.33

Reasonable Fare 17 56.67

Avoid Hassles like Waiting, Negotiating Price etc. 12 40

Total 30 100


The above Table indicates that 55.67 per cent use the services of Ola/Uber services on

account of its reasonable fares while 40 per cent of the respondents pointed out that they use

the services of private cabs to avoid waiting for cab or to negotiate the price. They further

revealed that it was very easy to book these services

8. Frequency of using Ola/Uber as Compared to Black and Yellow Taxis

Every respondent uses Ola/Uber services depending upon their need.

Table 8

Frequency of using Ola/Uber as Compared to Black and Yellow Taxis

Particulars Frequency PercentageDaily 2 6.67

Twice or thrice a week 13 43.33

Once a week 6 20

Rarely 9 30

Total 30 100Source: Primary Data

72

Table 8 indicates that 43.33 per cent of the respondents use the services of Ola/Uber twice or

thrice a week while 30 per cent of the respondents rarely use the service of Ola/Uber. Twenty

per cent of the respondents use the services of Ola/Uber once a week.

9. Consumer Response during Surge Pricing

Respondents mostly do not prefer Ola/Uber service in surge pricing while travelling.

Table 9

Consumer Response during Surge Pricing


Yes 2 6.66

No 23 76.67

Sometimes 5 16.67

Total 30 100


From the above Table one can interpret that 76.67 per cent of the respondents are not in

favour of surge pricing while 16.67 per cent prefer surge pricing only sometimes. Only 6.66

per cent prefer surge pricing as they prefer convenience while travelling.

10. Frequency of Using Ola/Uber offers

Every respondent sometimes uses the coupons and discounts while travelling in Ola/Uber.

Table 10

Frequency of Using Ola/Uber offers


Mostly 13 43

Sometimes 12 40

Rarely 3 10

Never 2 7

Total 30 100


73

The above Table reveals that 43 per cent of the respondents use the various offers or

discounts announced by Ola/ Uber while 40 per cent of them use them ‘sometimes’. About 7

per cent have ‘never’ used any offers and discounts announced by the Ola/Uber services.

11. Respondent’s Level of Satisfaction on the Quality of Service Offered by Ola/Uber

The following table indicates the level of satisfaction of customers with regard to the level of

service offered.

Table 11

Respondent’s Level of Satisfaction on Quality of Service Offered by Ola/Uber

Rating Total

Highly

Satisfied

Satisfied Neutral Dissatis

fied

Highly

Dissatis

fied

No. % No

.

% No. % No. % N

o.

% No. %

Reliability 9 30 19 63.33 2 6.67 - - - - 30 100

Comfort 12 40 15 50 3 10 - - - - 30 100

Convenience of

Booking

22 73.33 8 26.67 - - - - - - 30 100

Driver

Interaction

7 23.33 10 33.33 13 43.44 - - - - 30 100

Safety & Security 9 30 12 40 9 30 - - - - 30 100


The above Table indicates that 73.33 per cent of the respondents are ‘highly satisfied’ with

the services offered in convenience of booking while 63.33 per cent of the respondents were

‘satisfied’ with the reliability of the Ola/Uber services, followed by 50 per cent of the

respondents being ‘satisfied’ with the comfort of Ola/Uber services.

12. Travelling Distance

This factor varies from customer to customer. Most of the respondents prefer to use Ola/Uber

service for travelling long distance.

74

Table 12

Travelling Distance


0-20km 3 10

20-30km 14 46.67

30-40km 8 26.67

40-50km 4 13.33

50km & above 1 3.33

Total 30 100


Table 12 reveals that 44.67 per cent of the respondents use Ola/Uber service for travelling a

distance of 20-30 kilometers, while 26.67 per cent use the service Ola/Uber for travelling a

distance of 30-40 kilometers About 13.33 per cent of the respondents use Ola/Uber to travel a

very long distance of 50 kilometers and above.

Conclusion of the Study

This Study reveals that there are people who use Ola/Uber cab services twice or thrice a week

and occasionally. Nowadays people want more of convenience and safety which is offered by

Ola/Uber cab services. This is the prime reason for shifting of consumer behaviour, but

people have not shifted completely to Ola /Uber cab service.

Ola/Uber, should improve their customer car service. The Ola / Uber company should

manage their drivers well and everything will fall in place. During the collection of primary

data the researcher found that Ola/Uber were spending too much on advertisements and

providing discounts and free rides. Regular passengers are not looking for free rides but an

assurance that Ola/Uber will provide comfort and safety and that driver will exhibit good

moral behaviour.

Reference

1. Kailash Korde, Hindustan Times, 21.10.2016, “65per cent unhappy with Ola-Uber surge:

survey

75

2. Sanjay Jog, Business Standard, September 22, 2016, 80% commuters prefer Ola, Uber to

regular taxis: Survey

3. Girish Shahane, Scroll. In, Jun 17, 2015, ‘Why I gladly abandoned Bombay's Kali Peellee

cabs for Uber and Ola’.

4. Mayank Jain, Scroll. In, Aug 09, 2016, How black and yellow cabs in Delhi and Mumbai

are trying to beat Uber and Ola at their own game

5. Raveena Singh, moneycontrol.com, Aug 04, 2016, Black & yellow cabs take fight to Ola,

Uber and how

6. Times News Network, The Times of India, Aug 31, 2016, HC: Consumer is king, can't

stop discounts by Ola and Uber

7. Sunainaa Chadha, F. living, Jul 21, 2015, What #MumbaiRains taught me: Good old

Kaali Peeli is still better than Uber

76

REVELATION

The Research Journal of K. P. B. Hinduja College

(Published in June and December Every Year)

Subscription Form

Yearly Subscription:

Institutional: Rs. 500 for two issues Individual: Rs. 400/ for two issues

Foreign Annual: US $30/ for two issues

I /We herewith enclose a DD/Cheque for Rs. ____________________________towards

Subscription for 1Year, 2 Years, 3 Years

Name______________________________________________________________

Educational Institution/ Company ________________________________________

Address ____________________________________________________________

City:____________________________Pin_____________ Country____________

E-mail Address ___________________________________

Phone No. ______________

Send your payments by Demand Draft in favour of K.P.B. Hinduja College of Commerce

payable at Mumbai, India to

The Principal

Revelation

K.P.B. Hinduja College of Commerce,

315, New Charni Road, Mumbai 400 004.

Ph. 022 4098 90 00 Fax : 022 2385 93 97.

Email: [email protected]

[email protected]



77

Guidelines for Contributors

1. All articles received by the Journal will first be reviewed by the Editor and then

referred to the Advisors. The decision of the advisors will be final.

2. The soft copies of the paper typed in MS Word format ‘Times Roman’ font, and Font

Size 12 should be sent to the Executive Editor through Email.

The E-mail address of the Executive Editor: [email protected]

3. The maximum length of the articles should be restricted to 3000 words including

tables, chart and references. Foot notes and end notes should preferably be avoided.

4. All articles should be typed in 1 ½ spacing on A4 sized paper.

5. A declaration by the authors stating that the article is their original work and has

neither been published nor been submitted for publication elsewhere should

accompany the article.

6. The first page should include the following:

a. Title of the article

b. Name of the author

c. Designation and the name of the educational institution where employed

d. Complete address for communication

e. E-mail address of all the authors

7. Tables and Charts should appear in the paper wherever relevant. All tables and charts

should be numbered serially.

8. An article should end with a conclusion summarizing the findings of the paper.

9. References:

The author should provide complete references, numbered, at the end, of the article

with necessary information as in the specimen:

Articles: Kamenta J (1967), “On Estimation of the CES Production Function”

International Economic Review, Vol. 8, No.2, pp. 180-189.

Books: Bhatia B S and Batra G S (2003), Entrepreneurship and Small Business

Management, Deep and Deep Publications Pvt. Ltd., New Delhi.

10. The articles published in the Journal are the property of the College and it shall not be

published in full or in part without written permission from the College.


volume xvi december 2016 - hinduja journal

Documents