IMPACT OF E-COMMERCE AND M-COMMERCE ON COSUMER

BUYING BEHAVIOR

CHAPTER 1 - E- COMMERCE

INTRODUCTION TO E-COMMERCE

Electronic commerce, commonly written as e-commerce or eCommerce, is the trading or

facilitation of trading in products or services using computer networks, such as
the Internet or online social networks. Electronic commerce draws on technologies such
as mobile commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. Modern electronic commerce
typically uses the World Wide Web for at least one part of the transaction's life cycle
although it may also use other technologies such as e-mail.

E-commerce businesses may employ some or all of the following:

 Online shopping web sites for retail sales direct to consumers

 Providing or participating in online marketplaces, which process third-party
business-to-consumer or consumer-to-consumer sales
 Business-to-business buying and selling
 Gathering and using demographic data through web contacts and social media
 Business-to-business electronic data interchange
 Marketing to prospective and established customers by e-mail or fax (for
example, with newsletters)
 Engaging in pretail for launching new products and services
 Online financial exchanges for currency exchanges or trading purposes

E-Commerce -Advantages for Customers

 Convenience. Every product is at the tip of your fingers on the internet, literally. Type
in the product you are looking for into your favorite search engine and every option
will appear in a well organized list in a matter of seconds.
 Time saving. With e-commerce there is no driving in circles while looking and
digging in hopes of finding what you need. Stores online offer their full line as well as
use warehouses instead of store fronts—products are easy to locate and can be
delivered to your door in just days.
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 Options, options, options! Without driving from store to store the consumer can easily
compare and contrast products. See who offers the best pricing and have more options
to choose from. While a physical store has limited space, the same store on the
internet will have full stock.
 Easy to compare. Side by side comparisons are readily available and easy to do. When
products are placed online, they come with all the specifics, and they want you to
compare them with others, know they have the best options and come back for more!
 Easy to find reviews. Because the competition is high, companies online want you to
look at other consumer reviews. Good and bad reviews are on every site, not only can
you see if the product is liked, you can also see the reasons behind the thumbs up or
down.
 Coupons and deals. With every online business wanting you, more and more coupons
and deals can’t be avoided, which are totally great for customers. With major sites
that act as department store, you may find items up to 80% off! Take advantage of the
competition and find the best price available.
E-Commerce Disadvantages for Customers
 Privacy and security. Before making instant transactions online, be sure to check the sites
certificates of security. While it may be easy and convenient to shop, no one wants their
personal information to be stolen. While many sites are reputable, always do your
research for those with less than sufficient security.
 Quality. While e-commerce makes everything easily accessible, a consumer cannot
actually touch products until they are delivered to the door. It is important to view the
return policy before buying. Always make sure returning goods is an option.
 Hidden costs. When making purchases, the consumer is aware of the product cost,
shipping, handling and possible taxes. Be advised: there may be hidden fees that won’t
show up on your purchasing bill but will show up on your form of payment. Extra
handling fees may occur, especially with international purchases.
 Delay in receiving goods. Although delivery of products is often quicker than expected,
be prepared for delays. A snow storm in one place may throw off the shipping system
across the board. There is also a chance that your product may be lost or delivered to the
wrong address.
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 Need access to internet. Internet access is not free, and if you are using free wifi, there is
the chance of information theft over an unsecure site. If you are wearing of your public
library, or cannot afford the internet or computer at home, it may be best to shop locally.
 Lack of personal interaction. While the rules and regulations of each e-commerce
business is laid out for you to read, there is a lot to read and it may be confusing when it
comes to the legalities. With large or important orders, there is no one you can talk to face
to face when you have questions and concerns.
Social impact of E-Commerce

Along with the e-commerce and its unique charm that has appeared gradually, virtual
enterprise, virtual bank, network marketing, online shopping, payment and advertising, such
this new vocabulary which is unheard-of and now has become as familiar to people. This
reflects that the e-commerce has huge impact on the economy and society from the other
side.[63] For instance, B2B is a rapidly growing business in the world that leads to lower cost
and then improves the economic efficiency and also bring along the growth of
employment.[64]

To understand how the e-commerce has affected the society and economy, this article will
mention six issues below:

1. The e-commerce has changed the relative importance of time, but as the pillars of indicator
of the country’s economic state that the importance of time should not be ignored.

2. The e-commerce offers the consumer or enterprise various information they need, making
information into total transparency, will force enterprise no longer is able to use the mode of
space or advertisement to raise their competitive edge.Moreover, in theory, perfect
competition between the consumer sovereignty and industry will maximize social welfare.

3. In fact, during the economic activity in the past, large enterprise frequently has advantage
of information resource, and thus at the expense of consumers. Nowadays, the transparent
and real-time information protects the rights of consumers, because the consumers can use
internet to pick out the portfolio to the benefit of themselves. The competitiveness of
enterprises will be much more obvious than before, consequently, social welfare would be
improved by the development of the e-commerce.

4. The new economy led by the e-commerce change humanistic spirit as well, but above all,
is the employee loyalty. Due to the market with competition, the employee’s level of
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professionalism becomes the crucial for enterprise in the niche market. The enterprises must
pay attention to how to build up the enterprises inner culture and a set of interactive
mechanisms and it is the prime problem for them. Furthermore, though the mode of e-
commerce decrease the information cost and transaction cost, however, its development also
makes human being are overly computer literate. In hence, emphasized more humanistic
attitude to work is another project for enterprise to development. Life is the root of all and
high technology are merely an assistive tool to support our quality of life.

5. Online merchants gather purchase activity and interests of their customers. This
information is being used by the online marketers to promote relevant products and services.
This creates an extra convenience for the online shoppers.

6. Online merchandise is searchable, which makes it more accessible to the shoppers. Many
online retailers offer a review mechanism, which helps shoppers decide on the product to
purchase. This is another convenience and a satisfaction improvement factor.

E-commerce is not a new industry, technically speaking, but it is creating a new economic
model. Most people agree that e-commerce will positively impact economic society in the
future, but in its early stages its impacts are difficult to gauge. Some have noted that e-
commerce is a sort of incorporeal revolution. E-commerce has numerous social benefits: one,
the cost of running an e-commerce business is very low when compared with running a
physical store; two, there is no rent to pay on expensive premises; and three, business
processes are simplified and less man-hours are required to run a typical business smoothly.
In the area of law, education, culture and also policy, e-commerce will continue to rise in
impact. E-commerce will truly take human beings into the information society.
Impact On Markets and Retailers

Economists have theorized that e-commerce ought to lead to intensified price competition, as
it increases consumers' ability to gather information about products and prices. Research by
four economists at the University of Chicago has found that the growth of online shopping
has also affected industry structure in two areas that have seen significant growth in e-
commerce, bookshops and travel agencies. Generally, larger firms are able to use economies
of scale and offer lower prices. The lone exception to this pattern has been the very smallest
category of bookseller, shops with between one and four employees, which appear to have
withstood the trend. Depending on the category, e-commerce may shift the switching costs—
procedural, relational, and financial—experienced by customers.
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Individual or business involved in e-commerce whether buyers or sellers rely on Internet-

based technology in order to accomplish their transactions. E-commerce is recognized for its
ability to allow business to communicate and to form transaction anytime and anyplace.
Whether an individual is in the US or overseas, business can be conducted through the
internet. The power of e-commerce allows geophysical barriers to disappear, making all
consumers and businesses on earth potential customers and suppliers. Thus, switching
barriers and switching costs may shift.[ eBay is a good example of e-commerce business
individuals and businesses are able to post their items and sell them around the Globe.

In e-commerce activities, supply chain and logistics are two most crucial factors need to be
considered. Typically, cross-border logistics need about few weeks time round. Based on this
low efficiency of the supply chain service, customer satisfaction will be greatly
reduced. Some researcher stated that combining e-commerce competence and IT setup could
well enhance company’s overall business worth.Other researcher stated that e-commerce
need to consider the establishment of warehouse centers in foreign countries, to create high
efficiency of the logistics system, not only improve customers’ satisfaction, but also can
improve customers’ loyalty.

M-Commerce
INTODUCTION TO M-COMMERCE

The phrase mobile commerce was originally coined in 1997 by Kevin Duffey at the launch of
the Global Mobile Commerce Forum, to mean "the delivery of electronic
commerce capabilities directly into the consumer’s hand, anywhere,
via wireless technology."Many choose to think of Mobile Commerce as meaning "a retail
outlet in your customer’s pocket."

Mobile commerce is worth US$230 billion, with Asia representing almost half of the market,
and has been forecast to reach US$700 billion in 2017.According to BI Intelligence in
January 2013, 29% of mobile users have now made a purchase with their phones. Walmart
estimated that 40% of all visits to their internet shopping site in December 2012 was from
a mobile device. Bank of America predicts[5] $67.1 billion in purchases will be made from
mobile devices by European and U.S. shoppers in 2015. Mobile retailers in UK alone are
expected to increase revenues up to 31% in FY 2013–14.
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Advantages of Mobile Commerce

1. Cover wild distance : Mobile is the only technology which is now become necessary for
any person in social and business life than computers. So, it is easy to reach users through
mCommerce.
2. Consumer deals : As more users use mCommerce, there are lots of companies use the
mCommerce site to reach them by giving different and better deals in comparison to their
competitor.
3. Savings : Companies try to reach to the consumer directly through mCommerce, so users
have no need to go far to the store physically and at the end it saves user’s time and money.
4. Easy to use : There is no need of the skilled consumer. Buyers can have look thousands of
items on their cell phones and there is no need of online checkout process.
Disadvantages of Mobile Commerce
1. Smartphone limitation : Mobile has no big screen like desktop or laptops, so sometimes
users tired to navigate more and more to choose just one item from thousands. It affects
shopping rates.
2. Habituate : Every new technology has some problem at the starting phase. Here
mCommerce is a new application, so sometimes people avoid to change which are rapidly
change. As they are habituated to buy products from eCommerce.
3. Risk factor : Each business has its own risk. Same Moblie commerce is the growing field
and a lot of investment in this field becomes risky. Because technology changes day by day.
Moreover, there less security in the wireless network, so in data transfer hacking chances are
more.
4. Connectivity : Moblie commerce needs high-speed connectivity of 3G. Otherwise, it is
become hectic for the user to go through entire product purchase process.

SERVICES OF MCOMMERCE

Mobile money transfer

In Kenya money transfer is mainly done through the use of mobile phones. This was an
initiative of a multimillion shillings company in Kenya named Safaricom. Currently, the
companies involved are Safaricom and Airtel. Mobile money transfer services in Kenya are
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now provided by the two companies under the names M-PESA and Airtel Money
respectively.

A similar system called MobilePay has been operated by Danske Bank in Denmark since
2013. It has gained considerable popularity with about 1.6 million users by mid-2015.
Another similar system called Vipps was introduced in Norway in 2015.

Mobile ATMs are usually self-contained units that don’t need a building or enclosure.
Usually, a mobile ATM can be placed in just about any location and can transmit transaction
information wirelessly, so there's no need to have a phone line handy. Mobile ATMs may,
however, require access to an electrical source, though there are some capable of running on
alternative sources of power. Often, these units are constructed of weather-resistant materials,
so they can be used in practically any type of weather conditions. Additionally, these
machines typically have internal heating and air conditioning units that help keep them
functional despite the temperature of the environment.ion of mobile money services for the
unbanked, operators are now looking for efficient ways to roll out and manage distribution
networks that can support cash-in and cash-out. Unlike traditional ATM, sicap Mobile ATM
have been specially engineered to connect to mobile money platforms and provide bank
grade ATM quality. In Hungary, Vodafone allows cash or bank card payments of monthly
phone bills.The Hungarian market is one where direct debits are not standard practice, so the
facility eases the burden of queuing for the postpaid half of Vodafone’s subscriber base in
Hungary.

Mobile ticketing

Tickets can be sent to mobile phones using a variety of technologies. Users are then able to
use their tickets immediately, by presenting their mobile phone at the ticket check as a digital
boarding pass. Most number of users are now moving towards this technology. Best example
would be IRCTC where ticket comes as SMS to users.

Mobile vouchers, coupons and loyalty cards

Mobile ticketing technology can also be used for the distribution of vouchers, coupons, and
loyalty cards. These items are represented by a virtual token that is sent to the mobile phone.
A customer presenting a mobile phone with one of these tokens at the point of sale receives
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the same benefits as if they had the traditional token. Stores may send coupons to customers
using location-based services to determine when the customer is nearby.

Content purchase and delivery

Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones,
wallpapers, and games for mobile phones. The convergence of mobile phones, portable audio
players, and video players into a single device is increasing the purchase and delivery of full-
length music tracks and video. The download speeds available with 4G networks make it
possible to buy a movie on a mobile device in a couple of seconds.

Location-based service

The location of the mobile phone user is an important piece of information used during
mobile commerce or m-commerce transactions. Knowing the location of the user allows
for location-based services such as:

 Local discount offers

 Local weather
 Tracking and monitoring of people

Information services

A wide variety of information services can be delivered to mobile phone users in much the
same way as it is delivered to PCs. These services include:

 News
 Stock quotes
 Sports scores
 Financial records
 Traffic reporting
 Emergency Alerts

Customized traffic information, based on a user's actual travel patterns, can be sent to a
mobile device. This customized data is more useful than a generic traffic-report broadcast,
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but was impractical before the invention of modern mobile devices due to
the bandwidth requirements.

Mobile banking

Banks and other financial institutions use mobile commerce to allow their customers to
access account information and make transactions, such as purchasing stocks, remitting
money. This service is often referred to as mobile banking, or m-banking.

Mobile brokerage

Stock market services offered via mobile devices have also become more popular and are
known as Mobile Brokerage. They allow the subscriber to react to market developments in a
timely fashion and irrespective of their physical location.

Auctions

Over the past three years mobile reverse auction solutions have grown in popularity. Unlike
traditional auctions, the reverse auction (or low-bid auction) bills the consumer's phone each
time they place a bid. Many mobile SMS commerce solutions rely on a one-time purchase or
one-time subscription; however, reverse auctions offer a high return for the mobile vendor as
they require the consumer to make multiple transactions over a long period of time.

Mobile browsing

Using a mobile browser—a World Wide Web browser on a mobile device—customers can
shop online without having to be at their personal computer. Many mobile marketing apps
with geo-location capability are now delivering user-specific marketing messages to the right
person at the right time.

Mobile purchase

Catalog merchants can accept orders from customers electronically, via the customer's mobile
device. In some cases, the merchant may even deliver the catalog electronically, rather than
mailing a paper catalog to the customer. Consumers making mobile purchases can also
receive value-add upselling services and offers. Some merchants provide mobile web sites
that are customized for the smaller screen and limited user interface of a mobile device.
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In-application mobile phone payments

Payments can be made directly inside of an application running on a popular smartphone

operating system, such as Google Android. Analyst firm Gartner expects in-application
purchases to drive 41 percent of app store (also referred to as mobile software distribution
platforms) revenue in 2016. In-app purchases can be used to buy virtual goods, new and other
mobile content and is ultimately billed by mobile carriers rather than the app stores
themselves. Ericsson’s IPX mobile commerce system is used by 120 mobile carriers to offer
payment options such as try-before-you-buy, rentals and subscriptions.[21]

Mobile marketing and advertising

In the context of mobile commerce, mobile marketing refers to marketing sent to mobile
devices. Companies have reported that they see better response from mobile marketing
campaigns than from traditional campaigns. The primary reason for this is the instant nature
of customer decision-making that mobile apps and websites enable. The consumer can
receive a marketing message or discount coupon and, within a few seconds, make a decision
to buy and go on to complete the sale - without disrupting their current real-world activity.

For example, a busy mom tending to her household chores with a baby in her arm could
receive a marketing message on her mobile about baby products from a local store. She can
and within a few clicks, place an order for her supplies without having to plan ahead for it.
No more need to reach for her purse and hunt for credit cards, no need to log in to her laptop
and try to recall the web address of the store she visited last week, and surely no need to find
a babysitter to cover for her while she runs to the local store.

Research demonstrates that consumers of mobile and wireline markets represent two distinct
groups who are driven by different values and behaviors, and who exhibit dissimilar
psychographic and demographic profiles.[22]What aspects truly distinguish between a
traditional online shopper from home and a mobile on-the-go shopper? Research shows that
how individuals relate to four situational dimensions- place, time, social context and control
determine to what extent they are ubiquitous or situated as consumers.[23] These factors are
important in triggering m-commerce from e-commerce. As a result, successful mobile
commerce requires the development of marketing campaigns targeted to these particular
dimensions and according user segments.
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CONSUMER BEHAVIOUR:
Consumer behaviour is the study of individuals, groups, or organizations and the processes
they use to select, secure, use, and dispose of products, services, experiences, or ideas to
satisfy their needs and wants. It is also concerned with the social and economic impacts that
purchasing and consumption behaviour has on both the consumer and wider
society.Consumer behaviour blends elements
from psychology, sociology, social anthropology, marketing and economics,
especially behavioural economics. It examines how emotions, attitudes and preferences affect
buying behaviour. Characteristics of individual consumers such
as demographics, personality lifestyles and behavioural variables such as usage rates, usage
occasion, loyalty, brand advocacy, willingness to provide referrals, in an attempt to
understand people's wants and consumption are all investigated in formal studies of consumer
behaviour. It also tries to assess influences on the consumer from groups such as family,
friends, sports, reference groups, and society in general.
Consumer behaviour, in its broadest sense, is concerned with how consumers select and use
goods and services

The study of consumer behaviour is concerned with all aspects of purchasing and
consumption behavior as well as all persons involved in purchasing decisions and
consumption activities. Research has shown that consumer behaviour is difficult to predict,
even for experts in the field.

Factors Affecting Consumer Behavior

Consumer behavior refers to the selection, purchase and consumption of goods and services
for the satisfaction of their wants. There are different processes involved in the consumer
behavior. Initially the consumer tries to find what commodities he would like to consume,
then he selects only those commodities that promise greater utility. After selecting the
commodities, the consumer makes an estimate of the available money which he can spend.
Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision
about the commodities he should consume. Meanwhile, there are various other factors
influencing the purchases of consumer such as social, cultural, personal and psychological.
The explanation of these factors is given below.

1. Cultural Factors
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Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture,
and social class.1

Culture: Basically, culture is the part of every society and is the important cause of person
wants and behavior2. The influence of culture on buying behavior varies from country to
country therefore marketers have to be very careful in analyzing the culture of different
groups, regions or even countries.

Subculture: Each culture contains different subcultures such as religions, nationalities,

geographic regions, racial groups etc2. Marketers can use these groups by segmenting the
market into various small portions. For example marketers can design products according to
the needs of a particular geographic group.

Social Class:Every society possesses some form of social class which is important to the
marketers because the buying behavior of people in a given social class is similar. In this way
marketing activities could be tailored according to different social classes. Here we should
note that social class is not only determined by income but there are various other factors as
well such as: wealth, education, occupation etc.

2. Social Factors:Social factors also impact the buying behavior of consumers. The
important social factors are: reference groups, family, role and status.

Reference Groups:Reference groups have potential in forming a person attitude or behavior.

The impact of reference groups varies across products and brands. For example if the product
is visible such as dress, shoes, car etc then the influence of reference groups will be high.
Reference groups also include opinion leader (a person who influences other because of his
special skill, knowledge or other characteristics).

Family : Buyer behavior is strongly influenced by the member of a family. Therefore

marketers are trying to find the roles and influence of the husband, wife and children. If the
buying decision of a particular product is influenced by wife then the marketers will try to
target the women in their advertisement. Here we should note that buying roles change with
change in consumer lifestyles.
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Roles and Status: Each person possesses different roles and status in the society depending
upon the groups, clubs, family, organization etc. to which he belongs. For example a woman
is working in an organization as finance manager. Now she is playing two roles, one of
finance manager and other of mother. Therefore her buying decisions will be influenced by
her role and status.

3. Personal Factors

Personal factors can also affect the consumer behavior. Some of the important personal
factors that influence the buying behavior are: lifestyle, economic situation, occupation, age,
personality and self concept.

Age: Age and life-cycle have potential impact on the consumer buying behavior. It is obvious
that the consumers change the purchase of goods and services with the passage of time.
Family life-cycle consists of different stages such young singles, married couples, unmarried
couples etc which help marketers to develop appropriate products for each stage.

Occupation: The occupation of a person has significant impact on his buying behavior. For
example a marketing manager of an organization will try to purchase business suits, whereas
a low level worker in the same organization will purchase rugged work clothes.

Economic Situation: Consumer economic situation has great influence on his buying
behavior. If the income and savings of a customer is high then he will purchase more
expensive products. On the other hand, a person with low income and savings will purchase
inexpensive products.

Lifestyle: Lifestyle of customers is another import factor affecting the consumer buying
behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things
in his/her surroundings. It is determined by customer interests, opinions, activities etc and
shapes his whole pattern of acting and interacting in the world.

Personality: Personality changes from person to person, time to time and place to place.
Therefore it can greatly influence the buying behavior of customers. Actually, Personality is
not what one wears; rather it is the totality of behavior of a man in different circumstances. It
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has different characteristics such as: dominance, aggressiveness, self-confidence etc which
can be useful to determine the consumer behavior for particular product or service.

4. Psychological Factors

There are four important psychological factors affecting the consumer buying behavior.
These are: perception, motivation, learning, beliefs and attitudes.

Motivation: The level of motivation also affects the buying behavior of customers. Every
person has different needs such as physiological needs, biological needs, social needs etc.
The nature of the needs is that, some of them are most pressing while others are least
pressing. Therefore a need becomes a motive when it is more pressing to direct the person to
seek satisfaction.

Perception: Selecting, organizing and interpreting information in a way to produce a

meaningful experience of the world is called perception. There are three different perceptual
processes which are selective attention, selective distortion and selective retention. In case of
selective attention, marketers try to attract the customer attention. Whereas, in case of
selective distortion, customers try to interpret the information in a way that will support what
the customers already believe. Similarly, in case of selective retention, marketers try to retain
information that supports their beliefs.

Beliefs and Attitudes: Customer possesses specific belief and attitude towards various
products. Since such beliefs and attitudes make up brand image and affect consumer buying
behavior therefore marketers are interested in them. Marketers can change the beliefs and
attitudes of customers by launching special campaigns in this regard

It’s often been said that the only thing you can count on is change. This is certainly true in
the area of retail. After all, half a century ago who could have predicted that we would one
day do much of our shopping from home through the use of computer networks and virtual
stores? Let’s take a quick look at the history of retail, and see what led us to this point.

Pre 1800s: Ye Olde Shoppes

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Up until the 1800s, most “retail” was done in small, family owned establishments or in
marketplaces. Products seldom traveled very far from supplier to consumer, and most
business was local. Bartering was common.

1800s: The Birth of Department Stores

As transportation methods became more effective and less costly, sellers were able to start
carrying more products and supplies from farther away. This allowed for larger shops to
open. In 1846, Alexander Stewart built the “Marble Palace,” the largest retail store that the
world had ever seen. It would later become known as the first department store, and its design
would influence later department stores such as Macy’s and Gimbel’s. The cash register was
invented in 1879, and soon included a small paper roll that would record details of
transactions, resulting in the first “sales receipts.” Within less than a decade, this new
technology had become a prerequisite for doing business. Department stores continued to
grow and flourish for well over a century.

Late 1800s–mid 1900s: Mail Orders and Catalogues

As the nation began to expand westward, mail-order business experienced a boom. Catalog
shipping prices were reduced to miniscule amounts to help promote expansion (thanks to the
1862 Homestead Act). In 1872 the first mail-order catalog—a single sheet of paper featuring
product names and prices—was sent out by Montgomery Ward. The much more
influential Sears and Roebuck catalog was first released in 1894; it featured 322 pages. Mail
order catalogs remained the foremost means of purchasing items long-distance until the start
of the information age.

1900s: Baby Boom

As technology continued to progress, shopping became easier. Automobiles were becoming
commonplace, allowing customers to take enjoyable “shopping trips.” The first supermarket
opened in Massachusetts in 1915, and the first shopping mall followed suit eight years later in
Missouri. The shopping cart was invented in 1936, further facilitating the shopping
experience. After the close of the Second World War, a population explosion known as the
“baby-boom” increased consumer demand several fold. As a result, new highways and larger
shopping centers began to appear. Suburban malls started to spring up as well, and in 1958,
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Bank of America launched the first credit card program (it would eventually merge with other
programs and networks to become Visa in 1976). In 1962, the first discount stores—Kmart,
Walmart, Target, and Woolco—opened their doors.The 1960s also saw the invention of the
debit card.

Late 1900s: The Era of Big Box Stores

Department stores began to decline with the emergence of large, inexpensive bulk-items
stores. Bigbox store chains began to open, making it easier for shoppers to make all of their
purchases at one location. Costco Wholesale opened in 1983 and was an immediate success,
and have continued to set the standard for warehouse clubs and high-end retail. In 1990,
Walmart became the world’s largest retailer, further hastening the decline of department
stores. In 1995, Amazon.com went active, taking advantage of the relatively new invention—
the internet—to sell and ship books. It took six years before the company began to make a
profit.

2000s–now: The Internet Age

As the internet became more ubiquitous and easy to use, many companies took their cues
from Amazon and expanded into online retail. Online orders and automated shipping allowed
customers to start shopping from the comfort of their own homes, without the need of
catalogs, telephones, or postage stamps. In 2003, big box stores sales surpassed department
store sales for the first time. In 2006, Facebook debuted, allowing companies to promote
themselves on social networks. Social media has revolutionized the way businesses operate
and communicate with consumers. This has had a huge impact on retail business. In 2008,
Apple and iTunes became the largest music retailers in the world. Amazon.com went on to
become the world’s largest online retailer. It has become so enormous that it takes big data
analytics just to compute the information in the millions of transactions occurring daily. With
that amount of people turning to the internet for shopping, many department stores and other
“off-line” stores around the country began to close their doors. Malls all around the U.S. have
started losing their flagship stores, which has threatened the closure of the entire shopping
center.

The Future: ???

Who can really say what is in store for retail as the years march onward? However, one thing
seems certain: whatever happens, the internet and other new technologies will continue to pay
 IMPACT OF E-COMMERCE AND M-COMMERCE ON COSUMER
BUYING BEHAVIOR

a big part in the future of retail. And just as America adapted from the mom-and-pop and
marketplace retail models of the past, so too will we adapt to whatever new innovation comes
our way.
 IMPACT OF E-COMMERCE AND M-COMMERCE ON COSUMER
BUYING BEHAVIOR

CHAPTER 2 - E-COMMERCE IN TOHEM ENTERPRISES

INTRODUCTION TO TOHEM ENTERPRISES

Tohem Enterprises is a manufacturer of notes books, computer peripheral, pen. These

includes printing and stationery, notes books, computer peripheral, pen, pencil, visiting cards
printing.

HISTORY

In the beginning, it was started as a wholesale shop selling printing and stationery named as
tohem enterprises at kalbadevi road, in the year 1985. The legal status of the firm is sole
proprietorship (Individual). Initially, the enterprise used to manufacture printing and
stationery by using traditonal way of selling i.e bricks and motor. In 1985 the annual turnover
was about 10 Lakh - 25 Lakh. Till 2005 the enterprise was operated, and the enterprise was
expanded after purchasing new office at kalbadevi in 2005. The new office was further
employed and addition in technology was made further. hence, the turnover has considerably
increased to around 50 lakh - 1 Crore. Further they made there own website for more
business.

ORGANIZATION STRUCTURE OF TOHEM ENTERPRISES

Manufacturing Head

Procurement Head

Dispatch Head
Sole proprietorship

Marketing Head Accounting Head

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BUYING BEHAVIOR

SWOT ANALYSIS OF TOHEM ENTERPRISES

Strengths Weakness
-Quality -Improper
-Technology Management

Opportnities Threats
-Export -High
-New products Competition

STRENGTH OF THE ENTERPRISES

QUALITY-
The product they sell is of high quality with lower price band compared to other enterprises.

TECHNOLOGY-
Tohem enterprise has the most advance technology in which the goods would be good
enough and also it would be with great efficiency.

WEAKNESS OF THE ENTERPRISES

IMPROPER MANAGEMENT-
The manager in the company do not pay attention in the work and so lazy and do not work
efficiently.

OPPORTUNITIES OF THE COMPANY

EXPORT-
There are huge opportunity in this field for export and enterprise are good enough to ezport
and there are many enquires regard the export for tohem enterprises.
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BUYING BEHAVIOR

NEW PRODUCT-
New product are being manufactured through offline and online.

THREATS-