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Factors
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Influencing
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Demand of
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Online
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CHAPTER – 1
INTRODUCTION
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BACKGROUND
Commerce has evolved over the centuries. Prior to the evolution of money it was a
simple“barter process” where things could be exchanged, say milk for grains. The
Commerce is function of 4 P’s– Product, Price, Place and Promotions. All these four
components play a vital role in a transaction to take place. Different combinations of 4Ps
determine different forms of Commerce. Once the marketplace came into existence, a
few pioneers realised that people would be ready to pay extra if they could deliver
products at customer’s doorsteps. A slight modification on Price and Place led to the
convenience of getting products at their homes. This concept delighted the customers and
thus, the concept of “Street Vendors” was born. When the Postal System came into being
the sellers decided to cash in on the new opportunity and started using mailers giving
description of their products. It led to the concept of “Mail Order Cataloguing”. From
here, the evolution of the “Tele shopping” networks was inevitable with the development
of media vehicles.
The latest generation of commerce is one that can be done over the internet, termed as E-
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1.1.2 E-Commerce:
selling of products or services over electronic systems such as the Internet and other
computer networks. Electronic commerce has become one of the essential characteristics
in the Internet era. Online shopping has become the third most popular internet activity,
immediately following e-mail using/instant messaging and web browsing. It is even more
popular than seeking out entertainment information and news, two commonly thought of
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1.1.3 Online ticketing:
Electronic ticketing over the Internet is a good example of Internet commerce.The aim is
to facilitate the buying or reservation of tickets online, thereby making the process more
easily accessible and convenient. Through these services tickets may be purchased from
any location and at any time, provided an Internet connection exists. Typically, the tickets
are ordered from a web site that provides both tickets information and the purchasing or
reservation service. Internet or 'online' ticketing is all about providing a useful and
The aim is to make the purchase or reservation of tickets easier. Online ticketing system
has been used especially by firms who sell travel tickets, performing arts, game tickets,
concerts, movies and many other activities. The use of the Internet makes buying a ticket
more convenient since the service is available at any geographical location, including
your home (or even remotely via a laptop and cellular phone) and at any time of the day,
alongside the service. This can aid purchasing decisions and may encourage future usage.
So ticket buyers have quite an easy commute to the ticket booth these days-they only
have to get to their home personal computer and onto the internet. It beats standing in
lines (perhaps out in the rain) and day, and the only traffic one encounters is that of the
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There are also benefits for those providing the service. New markets are being created
and ticket sales are increased. Apart from maintenance and data updates, no manpower is
required to provide the service once it has been established. The process of recording the
transactions is more automated and overhead is reduced. An important point is that ticket
providers are also providing a convenient service to customers and are thereby improving
Online ticketing can be done for various services like railways , movies, airlines , hotels
etc. Of these services railways and movies are under our consideration.
Internet ticket booking is the fastest growing online transaction in the E-commerce
segment with the purchases averaging to Rs. 40 crore a month. In all 39 per cent of the
respondents used the online ticketing services of railways with the average value of ticket
varying between Rs. 1,400 and Rs. 1,600 on an average during the first quarter this fiscal.
In all, 25 per cent of those who transacted on the website were new customers while 75
per cent
India is clearly an emerging leisure online travel market, attracting millions in start-up
funding, the Indian online travel industry is in full form. Online travel is expected to be a
$2-billion industry.According to ticket sale data provided by Indian Railway Catering and
Tourism Corporation (IRCTC), which sells rail tickets online, out of the 880,000-odd
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reserved rail tickets sold a day between April and July 2009, around 300,000, or 34 per
In 2008-09, of the 860,000 or so reserved rail tickets sold every day, around 200,000
(above 25 per cent) were sold online. IRCTC accounted for 17 per cent of the total
In value terms IRCTC’s ticketing revenues have increased by 462 per cent over the last
three years. From Rs 704.91 crore in 2006-07 and Rs 1744.68 crore in 2007-08, the
corporation garnered Rs 3966.98 crore from sale of online tickets last fiscal. It plans to
earn at least Rs 5000 crore from the sale of online tickets during the current financial year
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1.1.3.3 Online Movie tickets purchase in India:
Online ticket booking for movies although less common , is growing at a very fast pace.
Easy to use websites help customers to plan their show well in advance. It also helps in
last minute rush for tickets. In India online movie ticket bookings have doubled in first
six months of 2008. Common website like bookmyshow.com and websites of different
Cineplex have made online movie ticket booking very easy. These websites provide
information about the availability of tickets across all Cineplex of major cities in India.
1.2 OBJECTIVE:
To study the relation between demand for online ticketing and certain factors for railway
and movies.
Intention
Complete adoption
Attitude
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Emergency
Recommendation
The thesis contains five chapters; in the first chapter, background about the subject under
consideration is given. The objective of the study and the scope is explained after a brief
The second chapter contains literature survey which consists of the factors under our
analysis.
The third chapter deals with data analysis and shows the results of the analysis of data
The fourth chapter deals with defining the conclusions drawn after the analysis and
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CHAPTER – 2
LITERATURE SURVEY
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2.1 LITERATURE SURVEY:
In our study we try to review the results of the researches that have been conducted
regarding these variables of online ticketing, namely: intention, perceived ease of use,
recommendation.
2.1.1 Intention:
Intention to online ticketing refers to the likelihood that consumers actually make online
Perceived ease of use refers to the degree to which a person believes that using a
particular system would be free of effort. PEOU has received enormous attention in the
IT adoption studies.
2.1.3 Adoption:
Adoption refers to complete switch over of customers from traditional means of usage of
a service to contemporary methods. In our project we are looking for the customers who
have completely adopted online ticketing as the only means of booking tickets.
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2.1.4 Attitude:
Consistent with the findings of most IT adoption research, a significant number of studies
2.1.5 Emergency :
Emergency factor refers to the usage of online ticketing in a situation where other means
of booking cannot be used. This factor can determine to some extent the revenues of the
service provider.
Online ticketing requires some amount extra to be paid by the customer to the bank of
which debit/credit card he is using. The willingness to pay this amount can determine the
2.1.7 Recommendation:
Once satisfied with the online booking services customers recommendation to others
about this service can lead to an increase in demand for online ticketing.
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2.2 THEORETICAL FRAMEWORK:
This section of chapter two aims to give the reader a basic knowledge of Correlation-
Regression Since the thesis is based on these, we believe that it is important that the
In statistics, linear regression refers to any approach to modeling the relationship between
one or more variables denoted y and one or more variables denoted X, such that the
model depends linearly on the unknown parameters to be estimated from the data. Such a
Linear regression was the first type of regression analysis to be studied rigorously, and to
linearly on their unknown parameters are easier to fit than models which are non-linearly
related to their parameters and because the statistical properties of the resulting estimators
Equations:
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where b0 is the constant in the regression equation, b1 is the regression coefficient, r is the
}2
Linear regression is widely used in biological, behavioral and social sciences to describe
possible relationships between variables. It ranks as one of the most important tools used
in these disciplines.
Trend line
A trend line represents a trend, the long-term movement in time series data after other
components have been accounted for. It tells whether a particular data set (say GDP, oil
prices or stock prices) have increased or decreased over the period of time. A trend line
could simply be drawn by eye through a set of data points, but more properly their
position and slope is calculated using statistical techniques like linear regression. Trend
lines typically are straight lines, although some variations use higher degree polynomials
Trend lines are sometimes used in business analytics to show changes in data over time.
This has the advantage of being simple. Trend lines are often used to argue that a
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particular action or event (such as training, or an advertising campaign) caused observed
changes at a point in time. This is a simple technique, and does not require a control
from a lack of scientific validity in cases where other potential changes can affect the
data.
Epidemiology
As one example, early evidence relating tobacco smoking to mortality and morbidity
came from studies employing regression. Researchers usually include several variables in
their regression analysis in an effort to remove factors that might produce spurious
correlations. For the cigarette smoking example, researchers might include socio-
economic status in addition to smoking to ensure that any observed effect of smoking on
mortality is not due to some effect of education or income. However, it is never possible
to include all possible confounding variables in a study employing regression. For the
smoking example, a hypothetical gene might increase mortality and also cause people to
smoke more. For this reason, randomized controlled trials are often able to generate more
regression. When controlled experiments are not feasible, variants of regression analysis
such as instrumental variables and other methods may be used to attempt to estimate
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Finance
The capital asset pricing model uses linear regression as well as the concept of Beta for
analyzing and quantifying the systematic risk of an investment. This comes directly from
the Beta coefficient of the linear regression model that relates the return on the
This analysis is adopted when the researcher has one dependent variable which is
analysis is to make a prediction about the dependent variable on its covariance with all
Where
X1,X2 , Xp are independent variables dependent of Y and the constants a ,b1, b2,bp can be
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2.2.3 Correlation
In statistics, correlation indicates the strength and direction of a relationship between two
two variables. The most common correlation coefficient, called the Pearson product-
moment correlation coefficient, measures the strength of the linear association between
variables.
A chi-square test (also chi-squared or χ2 test) is any statistical hypothesis test in which
the sampling distribution of the test statistic is a chi-square distribution when the null
hypothesis is true, or any in which this is asymptotically true, meaning that the sampling
distribution (if the null hypothesis is true) can be made to approximate a chi-square
approximately valid:
• Pearson's chi-square test, also known as the chi-square goodness-of-fit test or chi-
square test for independence. When mentioned without any modifiers or without
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other precluding context, this test is usually understood
autocorrelation
evidence of the need to move from a simple model to a more complicated one.
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CHAPTER -3
DATA ANALYSIS
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3.1 Introduction:
Analysis of the data collected through survey is done in order to determine the variation
in demand with factors under consideration. The analysis has been done using regression
analysis.
What are the main factors that influence the demand of online ticketing?
taking into consideration some of the factors listed above. The variation of the responses
for these factors help in determining the variation in demand i.e. relationship of the
variables is checked through, taking one independent and one dependent variable. In our
case dependent variable is demand and independent variables are those factors.
The types of research purpose can be classified in three categories: exploratory research,
Exploratory research is characterized by its flexibility. When a problem is broad and not
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valuable means of finding" what is happening; to seek new insights; to ask questions and
to asses phenomenon in a new light (Yin 1994).Exploratory research has the goal of
performed using a literature research, surveying certain people about their experiences,
focus groups and case studies. For instance, when surveying people, exploratory research
studies would not try to acquire a representative sample, but rather, seek to interview
those who are acknowledgeable and who might be able to provide insight concerning the
research is needed to describe it, to explain its properties and inner relationships(
determine the proportion of the population that uses a product or service, or predict future
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As opposed to exploratory research, descriptive research should define questions, people
surveyed and the method of analysis prior to beginning of data collection. In other words,
the who, what, where, when, why and how aspects of the research should be defined.
Such preparation allows one the opportunity to make any required changes before the
process of data collection has begun. However, descriptive research should be thought of
as a means to an end rather than an end to itself. Our research purpose and research
questions reveal that this study is primarily descriptive. Large -scale survey studies will
be conducted to identify the main factors that affect the Iranian passengers to buy the
train tickets through the internet. The related data will be collected and analyzed to verify
The study can be explanatory when the focus is on cause-effect relationships, explaining
what causes produces what effects (Yin 1994).explanatory (or causal) research seeks to
find cause and affect relationships between variables. It accomplishes this goal through
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3.5 Data Collection:
While working on the project the data collection process was taken up in order to
determine the customers’ preference for online ticketing considering above said factors.
Primary data included recording responses from various people of different age and
backgrounds. Questions were asked regarding their usage , intention , attitude and other
factors from people using a questionnaire. Majority of questions were based on likert
scale. As our scope is railways and movies , questions were asked for both industries.
different people for determining the preference for online ticketing. Questionnaire was
developed keeping in mind different factors for which analysis is to be done. These are
some of the factors out of many factors which can be taken into consideration. Likert five
point scales ranging from “strongly agree” to “strongly disagree” were used as a basis of
Questions
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3.6.1 Likert Five point scale:
A Likert scale is a psychometric scale commonly used in questionnaires, and is the most
widely used scale in survey research. When responding to a Likert questionnaire item,
respondents specify their level of agreement to a statement. The scale is named after its
1. Strongly disagree
2. Disagree
4. Agree
5. Strongly agree
Likert scaling is a bipolar scaling method, measuring either positive or negative response
to a statement. Sometimes a four-point scale is used; this is a forced choice method since
Likert scales may be subject to distortion from several causes. Respondents may avoid
using extreme response categories (central tendency bias); agree with statements as
favorable light (social desirability bias). Designing a scale with balanced keying (an
equal number of positive and negative statements) can obviate the problem of
acquiescence on negatively keyed items, but central tendency and social desirability are
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3.6.2 Data Coding:
◦ Strongly agree-5
◦ Agree-4
◦ Neutral-3
◦ Disagree-2
◦ Strongly disagree-1
Scores were given to factors according to the response for different questions.
Demand was computed taking the sum of scores of all factors and the sum was
coded as follows-
7*5=35
7*4=28
7 *3=21
7*2=14
7*1=7
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Thus , score in the range of 7-21 shows – unfavorable response and is given code as 3
Score in the range of 21-35 shows – favorable response and is given code as 1
21-35: 1
21: 2
7-21: 3
Regression analysis was used in order to determine the variation in demand for online
ticketing with different factors listed above. Since scope of our project is to determine the
variation in demand for railways and movies, separate analysis has been done for both..
Also chi-square test is applied for finding the dependency of demand on these factors.
3.8 SPSS:
SPSS released in its first version in 1968 after being developed by Norman H. Nie and
C. Hadlai Hull. SPSS is among the most widely used programs for statistical analysis in
SPSS manual (Nie, Bent & Hull, 1970) has been described as 'Sociology's most
3.9 REGRESSION:
R - R is the square root of R-Squared and is the correlation between the observed and predicted
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3.9.1 Interpretation of a Correlation Coefficient(R):
The sign and the absolute value of a correlation coefficient describe the direction and the
magnitude of the relationship between two variables.
The greater the absolute value of a correlation coefficient, the stronger the linear
relationship.
A positive correlation means that if one variable gets bigger, the other variable
A negative correlation means that if one variable gets bigger, the other variable
the proportion of the variance in the dependent variable that is predictable from the
independent variable.
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An r2 of 0 means that the dependent variable cannot be predicted from the
independent variable.
An r2 of 1 means the dependent variable can be predicted without error from the
independent variable.
on.
Model Summary
Standardized
Unstandardized Coefficients Coefficients
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Adoption -.034 .031 -.145 -1.091 .280
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3.9.3.2 Pie Charts:
Perceived Ease Of Use
5-Strongly Agree(27)
4- Agree(20)
3-Neutral (13)
2- Disagree(2)
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Complete Adoption
5- Strongly Agree(8)
4- Agree (7)
3-Neutral (32)
2- Disagree(15)
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3.9.3.3 Chi Square Tests:
Chi-Square Tests
N of Valid Cases 62
In the table above calculated value more than the table value so we can reject the null
hypothesis and accept the alternate hypothesis. i.e. demand is related to attitude and there
Chi-Square Tests
N of Valid Cases 62
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In the table above calculated value more than the table value so we can reject the null
hypothesis and accept the alternate hypothesis. i.e.WSEA is related to demand and there
Chi-Square Tests
N of Valid Cases 62
Here the calculated value is less than the tabulated value. We accept the null hypothesis.
i.e. demand is not influenced by intention and both factors are independent.
Model Summary
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Attitude -.021 .022 -.135 -.963 .340
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3.9.4.2 Pie Charts:
4- Agree (15)
3-Neutral (4)
2- Disagree (1)
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Complete Adoption:
5-StronglyAgree (22)
4- Agree (26)
3-Neutral (11)
2- Disagree (3)
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3.9.4.2 Chi-Square Tests:
Chi-Square Tests
N of Valid Cases 62
In the table above calculated value is less than the table value so we can accept the null
Chi-Square Tests
N of Valid Cases 62
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In the table above calculated value is less than the table value so we can accept the null
Chi-Square Tests
N of Valid Cases 62
In the table above calculated value is less than the table value so we can accept the null
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3.9.5 Combined pie charts for factors for both railways and movies:
Intention:
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Attitude:
5-Strongly Agree(18)
4- Agree (34)
3-Neutral (6)
2- Disagree (4)
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Emergency:
3-Neutral (14)
2- Disagree (21)
1-StronglyDisagree (3)
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Willingness to spend extra amount:
1-Strongly Disagree(1)
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Recommendation:
5-Strongly Agree(14)
4- Agree (33)
3-Neutral (10)
2- Disagree (4)
1-Strongly Disagree(1)
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CHAPTER - 4
CONCLUSION
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4.1Summary of Findings:
4.1.1. Movies:
From the data collected through the questionnaire and analysis of that data following
Out of 62 respondents 61 were favorable (i.e. score 1) and only 1 was neutral
(i.e. score 2)
ticket.
Out of 62 respondents 27 strongly agree that online ticket for movies have
R value for movies (.537) shows that there is a high degree of correlation
factors.
Chi-square test for movies for factor attitude gives the value as 16.755, which
shows that demand is related to attitude and there is high significance among the
two.
Chi-square test for movies for factor WSEA gives the value as 14.616, which
shows that demand is related to WSEA and there is high significance among the
two.
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4.1.2. Railways:
Out of 62 respondents 42 strongly agree that online ticket for railways have
R value for railways (.314) shows that there is a medium correlation between
factors.
Chi-square test for railways for factor attitude gives the value as 9.486, which
Chi-square test for railways for factor intention gives the value as 1.846, which
Chi-square test for railways for factor recommendation gives the value as 5.285,
railways
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4.2 Recommendations and Suggestions:
Online ticketing in India has a good potential. It is one of the fastest growing segment of
1. According to our research it is found that people are willing to spend some extra
amount of money for booking tickets online, thus online ticketing should be
3. More and more people have to be made aware of the usage of the online
4. Training programs for online ticketing, may be at a small scale should be started
5. Online booking for movies is still not very common in India. Thus we need to
create awareness about it and encourage more and more people to use it.
6. Online booking for movies is still a costly affair as extra amount of charges are
high.
7. For encouraging online booking for movies , young generation needs to targeted
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4.3 Directions For Future Research:
1. However the factors taken under consideration are well able to define
customers’ preference for online ticketing, more factors like security and
internet availability and also resources required for online ticketing should
also be considered.
3. The survey was done on random samples, no specific age group or occupation
was chosen. Another study can be conducted which specifically target people
could mean that result may suffer from lack of generalizability when other
service categories.
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BIBLIOGRAPHY
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References:
Prakashan pp-84-85,138-143.
http://www.ecommercejournal.com/news/online_booking_thriving_in_india?drg1
http://www.business-standard.com/india/storypage.php?autono=367841
http://epaper.hindustantimes.com/ArticleImage.aspx?article=30_09_2009_703_01
mode=undefined
http://www.ambab.com/final_ecommerce_report07.pdf
http://stattrek.com/AP-Statistics-1/Correlation.aspx?Tutorial=AP#
http://stattrek.com/AP-Statistics-1/Regression.aspx?Tutorial=AP
http://www.ats.ucla.edu/stat/spss/
http://wwwstage.valpo.edu/other/dabook/home.htm
http://www.webanalyticsindia.net/blog/category/internet-in-india/
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http://hsc.uwe.ac.uk/dataanalysis/quantInfAssChi.asp
http://en.wikipedia.org/wiki/Correlation
http://www.ats.ucla.edu/stat/spss/output/reg_spss(long).htm
http://en.wikipedia.org/wiki/Coefficient_of_determination
http://en.wikipedia.org/wiki/Chi-square_test
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