A study on potentiality of virtual shopping concept for selected FCMG products in Bangalore

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This research aims to discuss the future directions for how virtual shopping using smartphones will change shopping behaviour in Bangalore.

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International Journal of Management (IJM) Volume 9, Issue 2, March–April 2018, pp. 103–111, Article ID: IJM_09_02_012 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=2 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication A STUDY ON POTENTIALITY OF VIRTUAL SHOPPING CONCEPT FOR SELECTED FMCG PRODUCTS IN BANGALORE Saravana Kumar. S Ramaiah Institute of Management studies, Bangalore ABSTRACT The recent development of technological wave, in particular to virtual technology, has brought a new era in shopping activities. After, the successful business of e - commerce the shopping is changing which results in the emergence of virtual shopping using smartphones. Current research is chosen to investigate how consumers adopt technology in diverse virtual environments. QR (Quick Response), disseminate information about the products and services of the next step to bar code and use them before they buy online. This research aims to discuss the future directions for how virtual shopping using smartphones will change shopping behaviour in Bangalore. Based on the scope of utilizing virtual technology in shopping practices the concept is tested using a data from selected sample of Bangalore population. Research shows that customer shopping is simple and convenient. It also shows the concept is very useful for office goers and frequent buyers which have great demand in Bangalore. Though buyers are interested still sceptical with the issues faced when purchased online like, security, product quality, originality, warranty etc. The future online shopping is bright especially of travel, books, electronic gadgets, shoes, and gifts. On the basis of these findings, the younger generation's virtual shopping idea and the profile of potential buyers are examined. It id been concluded that middle-aged customers are more attracted for greater shopping experience by scanning QR code which eliminates long-time standing for groceries and saves money and time by simply scanning. Keywords: Virtual Shopping, What is virtual shopping, Virtual shopping in India, Virtual Shopping Strategies, Virtual Shopping 2018, Virtual shopping in Bangalore, Consumer Behaviour towards Virtual Shopping. Cite this Article: Saravana Kumar. S, A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in Bangalore, International Journal of Management, 9 (2), 2018, pp. 103–111. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=2 http://www.iaeme.com/IJM/index.asp 103 editor@iaeme.com
A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in Bangalore 1. INTRODUCTION Virtual shopping is Internet-based advancements that impact the flow of consumer decision making. This tool ensures how to approach various strategic issues to change the inventories of companies, enter new markets to draw new customers, and promote advertisements in competing environments. Before shopping closely with virtual shopping, it is necessary to consider traditional shopping, the company produces a product and do market testing before they enter into sales in a particular market. Now it is possible to use point-of-sale-scanner data for money and manufactured products to monitor the total sales and market share of products. The product is sold in the consumer group in a natural and competitive environment. Unfortunately, the process is sluggish and expensive. Innovative Hunger in South Korea, Tesco is now a controversial virtual shopping shop where shoppers can browse and sort basic items using their phones. They call it ‘augmented reality’. The creative technique built up a virtual store, where customers hold a list or a product enters up to mobile webcams in the aisles which produce a life-size 3D projection of items and read their specifications prior to making a buy. More than 500 of the most mainstream items are displayed on the wall. Each has a barcode/ QR code shopper’s scan, using their smartphone customers can place the order and products are delivered at home. More than 600,000 customers downloaded the application in only four months. Tesco isn't the only company which explores how to convey developing innovations to snatch the online dollar. Ocado, the greatest free online food merchant in the United Kingdom, has presented a comparable trial display at the One New Change shopping center in London's money related area and Chinese retailer Yihaodian, has created 'shopping walls’ in 70 subway stations around Shanghai. The innovation has been enhancing after some time, and because of mobile phones, marketers are beginning to see virtual stores are executed - in promoting and shopping made conveniently. One of its augmented reality offerings is software it calls 'Virtual Mirror'. This is an innovation that allows customers to experiment with different clothes or groceries from the comfort of one’s home, with the help of a webcam, says Hash Media founder Harshit Lalpura. It has been consistently established that in today’s world the internet and applications plays a significant role in the people lives. There is an increase in consumers who take product decisions on their own, obtaining information from different sources. In India, the recent increase in usage of applications and smart phones has given opportunities for organizations to tap into the previously inaccessible population of customers. Moreover, organizations have been constantly paying attention to the client opinions and their preferences, which can be readily available on smart phones. The various activities taking place on social interaction with different individuals on different websites can influence the consumer buying decisions. Consumers take many product decisions daily and they would like to gather the sources of information and advice from the reference groups. However, for FMCG goods consumers take their own decision and buy based on their previous purchase experience. Hence, for daily routine products consumes use limited decision making process and thus the purchasing of product made quicker and easier. Therefore, the analysis of consumers buying daily or FMCG products and enhancing the purchase faster and deliver at door step will give an essential view for the companies. This will help in improving the relationship and loyalty with consumers by using virtual shopping as a tool that do not even require a lot of penny. This analysis covers the population of Bangalore, where an ever changing multifarious factors that influence the behavior of consumers, effecting very quickly their buying decisions in the age group of 15-40 years with regard to purchasing product through virtual shopping. The different attitude has been analyzing which includes buying habits, buying interval, purchasing process, selection of the FMCG products. It is important to http://www.iaeme.com/IJM/index.asp 104 editor@iaeme.com
Saravana Kumar. S know how the virtual shopping can create a change in consumer buying behavior and products preferences of consumers with regard to FMCG. Marketers realize that in the present competitive condition, they have to create ideas that leap forward the customary approach to convey and attracting the customers. To avoid the benefits of recent innovations in user interface technologies, companies need to understand the technology as part of their shopping process. Innovation and innovative advertisers in mobile usage attracted more information on customers and by providing easy access to shopping, advertisers focusing on customer’s interaction. Addition to this, the virtual- shopping concept is developed and tested in many countries. This study will enable managers to create strategic choices such as new products, promotions, packaging, merchandise, etc. 2. LITERATURE REVIEW According to Adele peters, there are some advantages to an optimistic view for online shopping: If a company does not build infrastructure in a store, it uses heat inside the cool, light, and more efficient warehouse, more efficient in saving personal reserves for fuel storage and distribution vehicles than individual customers driving to store. According to Sreedhar Raamaswamy, these are the five ways retail has changed and how business can adapt the shopping technique based on the traditional shopping and modern shopping such as shoppers know as much as salespeople, retailers can deliver personal, relevant suggestions at scale, mobile devices drive foot traffic to stores etc., According to L’chen, virtual stores will provide imperative contributions to the range of business-to-consumer (b-to-c) e-commerce and lead the improvement of more meaningful and effective procedures for virtual stores. Raymond r burke says in his study that technology has given a great innovation and convenience for shopping through the online shopping and virtual store. Customers are generally satisfied with the convenience, quality, selection and values offered by the seller these days. The above review results that the proposed system can efficiently determine the virtual store concept as a success factors and the consumer acceptance. Virtual shopping provides great efficiency in the retail value chain, and their existence has tremendously paved the way for the diffusion of electronic commerce. Research Gap: Despite the fact that India is in succession with other developed countries, it is still not utilizing the technological resources efficiently. Some of the reasons, which attracted companies to the world of smart phones and applications, were low cost of data, freedom to the companies to offer large number of smart phone users, easy access to user centric spaces and providing huge amount of user content and communicating with users through open channels to gain insight into the psychology of the consumers. Although, the companies have managed to optimize the processes to gain maximum advantage from smart phone users, considerable research has covered various aspects of the phenomenon. However, adequate research findings are not available with regard to the challenges faced in the practical world. This present research is believed to fill the gap by studying consumer’s orientation, expectations, requirements and interests towards utilizing virtual shopping concept to attract more customers. This study is made from the perspective of marketers using various factors like motivational, risk and purchasing factors on virtual shopping for FMCG. For empirical study, selected FMCG products are chosen and aim to examine “potentiality of virtual shopping concept for selected FMCG products in Bangalore”. http://www.iaeme.com/IJM/index.asp 105 editor@iaeme.com
A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in Bangalore 3. CONCEPTUAL FRAMEWORK Figure 1 4. RESEARCH METHODOLOGY Research methodology is defined as a systematic way of solving the research problem (Kothari, 2004), involving describing the relevant methods and techniques employed during the process of study. The present chapter elaborates upon the research design adopted by the researcher, during the addressal of problem at hand. The pre-defining of notions related to process of research is crucial, so as to guide the study along appropriate lines and arrive at significant conclusions. The research design was adopted so as to satisfy the proposed conceptual framework and perform appropriate testing of proposed hypothesis. As a general rule, a positive research approach generally follows a detective approach, but the inductive research system is usually linked to a phenomenon theory. Thinkers have also emphasized on the selection of the particular philosophy positivism that it is an independent approach and is objective. Positivism assists in offering independent opportunity to the analyst to collect proper data as per the need of the research topic. Hence deductive approach would be selected with the positivism philosophy. One of the initial requirements of a research is to decide the research philosophy on which the research methodology shall be based. On conceptual grounds there are a diverse range of research philosophies namely positivism, interpretivism, pragmatism, objectivism, constructionism and realism. Therefore in order to address the objective of the proposed content of research the scholar has decided to select interpretivism as the research philosophy of this study. Based on this particular philosophy the scholar has decided to analyze the research data and interpret accordingly. The sample selection in quantitative research has to facilitate the drawing of inferences about the selected group, as opposed to gain an in depth knowledge of the issue in qualitative research. The respondents were asked to rate the following factors: http://www.iaeme.com/IJM/index.asp 106 editor@iaeme.com
Saravana Kumar. S • Use of online shopping • Visiting of virtual store • Commodities they prefer on online shopping • Idea about online shopping • Problems on online shopping • Level of agreement to various factors • Shopping of FMCG goods through virtual stores • Working of virtual store concept in Bangalore city To facilitate the collection of data from a large universe of population, the technique for sampling was well-defined, to gain information specific to the aim of the study. The research investigation was aimed at 15 – 40, based in Bangalore, who regularly access the smart phones and application platforms, and consequently purchase FMCG products like milk, soap, groceries, vegetables, etc., The non-random convenience sampling technique was employed for the purpose of primary data collection, as it allowed the specific members, of the target population to be included in the research. The convenience sampling allowed for easy and affordable collection of data, suiting the geographical proximity, accessibility, and availability of the subjects. Bangalore is considered as one of the best city for shopping and more diversified age group of people. The city’s climate makes it one of the ideal places for shopping. The city is chosen for the reason that there are lots of people who are working and will be busy with their jobs and hence forth they can do shopping by sitting at their working places. People in this city are also technologically updated and can find it easy in shopping. The sample size denotes the number of samples used for conducting the study. The total sample size consists of 150 people. Structured questionnaires were distributed to people in North Bangalore City. The questionnaires are filled in front of researcher himself. The researcher took permission from the people and requested to fill the form by explaining the purpose of the survey. Secondary data consist of data retrieved from College Library database, such as articles, journals, literatures in addition to books barrowed from University library or retrieve from Google Books and Google Scholar. These materials would facilitate this research study. In addition they would be critically interpreted with caution in order to avoid creating a false impression with the originator’s observation or view. The researcher checked and organized the collected data daily for the completeness and accuracy. The data subjected to suitable statistical analysis using descriptive Statistics like frequency proportion mean and standard deviation and inferential analysis too. The coding and categorization was done before entry. Data preparation includes the editing; coding, transcription and verification of data in order to remove errors that may have occurred during the data collection process The data collected through interview (structured questions) entered in excel form. The data from the questionnaire was transferred for examination using two computer programs, viz. Microsoft Excel and SPSS. The prime objective of the study was to understand the variation in the importance of the factors given by different age and occupation. Among which almost of the respondents are students. One-way ANOVA has been applied for the data analysis & conclusions. The approach was chosen to understand both main independent impacts as well as interaction effects of variables - age and occupation. 5. HYPOTHESIS TESTING H0: There is no potentiality to implement virtual store in Bangalore. H1: There exists high potentiality to implement virtual store in Bangalore. http://www.iaeme.com/IJM/index.asp 107 editor@iaeme.com
A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in Bangalore Table 1 ANOVA - ONE WAY Source of Variation SS df MS F P-value F crit Between Groups 7917.911 4 1979.478 25.56914 1.46355E-10 2.605975 Within Groups 3096.667 40 77.41667 Total 11014.58 44 The one-way analysis of variance (ANOVA) is used to determine whether there are any statistically significant differences between the means of two or more independent (unrelated) groups (although you tend to only see it used when there are a minimum of three, rather than two groups). As shown in the above calculation using SPSS, the calculated Fcri is less than Fstat. Fcri = 2.60< Fstat = 25.55. So therefore null hypothesis is rejected and hence there is high potentiality is there in implementing virtual store concept in Bangalore city. 6. FINDINGS Findings shows that Internet consumption has increased over the years and leads to an increase in online shopping and also shows customers' feedback and perception on online shopping. Communication still forms the major activity among the large number of online shoppers as 32% of regular online shopper use internet for communication as compared to shopping. More males are shopping online as compared to women online shopping has influenced a positive relationship between education and income levels based on effective online shopping behaviour. An important promotional factor that influenced online shopping was set for a time saving and cost-effectiveness. Regular online shopping is less affordable for those consumers who consider convenience as a major motivating factor during the purchase. But online retailers should try to distinguish their products and services simpler. Marketers have to come up with efficient ways in industry will increase the demand for its products like increasing more space and convenient shopping. One of the main concerns with online shoppers was privacy and quality of product delivered. There was a problem with 45.2% of buyers felt that the problem of buying cheap quality products, 30.4% of them felt the problem of damaged products, 23.5% awaiting problem in delivery and 7.5% products dint not delivery and other problems faced by 16.5%. Another reason that hindered virtual shopping is customer experience is more likely to be enjoyed from traditional shoppers, such as interacting with salesman, and salutation. Some products like grocery and apparel does not apply for virtual shopping, because the touch factor is main thing in shopping for these products. There are many benefits to actually sell a product virtually and send to customers such as, including market consumers around the world for Internet users, the physical store is limited to the local market. 31.7% of those who like to buy clothes online, 13.1% prefer groceries, 41.4% electronic gadgets and the rest likely to buy other things in online. Future virtual Shopping have more potential, especially for books, electronic gadgets, crane and gifts. Expansion in an online business is easy. Through the growth of affiliate marketing, perhaps by increasing volume or space use, a business can increase its ability to meet the needs of its products. Expanding in other segments of the physical store includes shops, or franchising, and opening more expensive rented stores and storage, or displaying products cost will be more than mail order and deliver. An online business gives more flexibility to adjust the market. Local store in larger cities with huge showroom and fewer customers can change their customer’s perception, and if they are operating from smallest building with few products in store affects customer demand in few years. Whereas in online business, customers can not know fewer or thousands of http://www.iaeme.com/IJM/index.asp 108 editor@iaeme.com
Saravana Kumar. S business customers. So that, 47.9% agreed that virtual shop concept will work in city of Bangalore, 25.4% disagreed and 26.7% neutral. So there is more opportunity to implement virtual store concept in Bangalore city. 7. SUGGESTIONS AND CONCLUSION Shopping can be a trial for a few, and it's a generally held conviction that numerous man can think that it’s to a greater degree a task than ladies. Intending to enhance the experience for men, Hointer added QR codes to their pants so clients could essentially filter the code so as to get their desired size conveyed to a changing room prepared for them to try on. This streamlined procedure spares customers from wading through piles of garments to locate their size, at last accelerating a shopping trip for the individuals who might rather be somewhere else. Specialists have seen applications that reward their clients with motivational expressions when they work out. Nonetheless, Nike Mexico made this a step ahead with their Facebook sell off, Subasta de Kilometers, which enabled sprinters to gather points for each kilometer run and after that utilization these points to offer on Nike-marked running rigging in the auction. Avoiding the lines is an engaging prospect for some and in light of those retailers utilizes customers email delivers to convey, as opposed to the conventional home address. Scientists have seen those engaged with retail alter amazingly to the increasing online world. By showing Facebook 'likes' on little screens implanted in articles' holders, the retailers demonstrated the expanding count of 'likes' distinctive things of apparel were getting from web customers. The expectation was that endorsement from the online group would urge customers to buy a thing of apparels. What the researcher are seeing today is just the start. Before long it will be hard even to characterize online business, not to mention gauge it. As it develops, computerized retailing is rapidly transforming into something so unique that it requires another name: Omni channel retailing. The name mirrors the way that retailers will have the capacity to collaborate with clients through endless stations—sites, physical stores, stands, regular postal mail and lists, call focuses, online networking, cell phones, gaming supports, TVs, arranged machines, home administrations, and that's only the tip of the iceberg. Advanced retailers drive development by spending intensely on selecting, wages, and rewards to draw in and hold top specialized ability. They were additionally among the first to use distributed computing (which drastically brings down passage and working expenses) and to improve showcasing productivity through informal organizations and web based promoting. In the interim, conventional retailers are slacking gravely. Online deals represent fewer than 2% of income at Walmart and Target. Nor are conventional retailers spearheading computerized advancements in different channels, for example, versatile shopping and call focuses, or flawlessly coordinating these advances in their most critical channel—physical stores. Conventional retailers live amazing changes in same-store deals, in-store deals per work hour, and remuneration frameworks in light of such measurements. That was fine when online deals were 2% to 3% of incomes, yet the entire framework goes into disrepair when that number achieves 15% to 20%. 8. CONCLUSION It is to conclude that the Internet is an aggregation of new media that have a monstrous potential to be a notable channel for electronic business. Virtual shopping takes after customary in-home shopping in that the customer makes purchases without physically heading off to a store. The Internet offers intends to disperse showcasing information like customary direct marketing, similar to catalogues and focused on targeted direct mail. The http://www.iaeme.com/IJM/index.asp 109 editor@iaeme.com
A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in Bangalore Internet has other drawing in properties too. It is modest, and it helps individual communication between the dealer and the shopper. It is valuable for distributing digital products, and it can abbreviate the time between purchase decision and delivery. In addition it gives the customer certain extra benefits, like the ability to compare and discuss products. The general web user is better suited to the common household, at least to the financial collection: both are well trained, have higher income and employability status. Moreover, the average Internet user is a male aged 20-40 years, which is an extremely dynamic group at in-home shopping. In an empirical survey, Virtual shopping is another idea among the general population in the world. Additionally, with the expansion utilization of smart phones among them and people need of having a casual life alongside having everything readily available, makes the world an iconic place for receiving such an innovation. This creative administration which takes away the crowded shops in ends of the week, long checkout lines, and overwhelming bags is accepted to be the following innovation revolution. Besides, it is imperative to examine how the buyers frame attitude and practices towards virtual shopping since customer disposition towards it is a noticeable factor influencing genuine purchasing conduct. At the point when advertisers get the opportunity to comprehend the variables influencing virtual customers' conduct then it make huge opportunity for the marketers to build up the showcasing techniques likewise and transform the potential clients into actual one. Hence, this paper inspected consumers’ states of mind toward virtual shopping in the world, featured virtual shopping benefits, and decided the profile of potential virtual customers. It is been reasoned that that virtual shopping thought attracts buyers from youthful ages as they search for the sake of entertainment and explore new shopping experience, and furthermore for customers from middle age, as influencing buys by scanning the QR which saves time and cash putting something aside for the individuals who hate remaining in long queues in stores and to buy basic supplies. This supports the advantages behind virtual shopping which is to spare time and reduce the payment burdens. Though buyers are interested still sceptical with the issues faced when purchased online like security, product quality, originality, warranty etc. The future online shopping is bright especially of travel, books, electronic gadgets, shoes and gifts. REFERENCES Websites [1] https://en.wikipedia.org/wiki/Virtual_store_research [2] http://www.slideshare.net/BharatBharadwaj/virtual-stores-the-future-of-retail [3] https://www.good.is/articles/can-virtual-stores-make-shopping-more-sustainable [4] https://businessamp.wordpress.com/2009/02/22/virtual-storefronts-real-advantages- disadvantages [5] http://www.mobilecommercedaily.com/qr-code-enabled-virtual-stores-support-merchants- mobile-shopping-strategies Books and articles [6] Adams, D. (2011). Bit Rebels. The World’s First Virtual Supermarket: Life Just Got Easier. Retrieved from http://www.bitrebels.com/technology/the-worlds-first-virtualsupermarket- opens/ [7] Dixon, T., & Marston, A. (2005). Taking the shopping center online: new models in ecommerce. Property Management, 1-14. http://www.iaeme.com/IJM/index.asp 110 editor@iaeme.com
Saravana Kumar. S [8] Gaile, E. (2009). Impact of technology adoption on consumer behavior. Economics & Management, 7. [9] Grunert, K. G., & Ramus, K. (2005). Consumers' willingness to buy food through the internet: A review of the literature and a model for future research. British Food Journal, 1-14. [10] Walker, R. H., & Johnson, L. W. (2006). Why consumers use and do not use technologyenabled services. Journal of Services Marketing, 1-12. [11] Yang, K., & Kim, H.-Y. (2012). Mobile shopping motivation: an application of multiple discriminant analysis. International Journal of Retail & Distribution Management, 1-13. http://www.iaeme.com/IJM/index.asp 111 editor@iaeme.com