Final Book 2011

Chapter One
An Analysis of Indian Automobile Exports
Dr. R.K.Sharma, Professor, Prestige Institute of Management and Research, Indore | Abhishek Singh Rajput, StudentPrestige Institute of Management and Research, Indore | Naman Jain, StudentPrestige Institute of Management and Research, Indore | Abhinav Shandilya, StudentPrestige Institute of Management and Research, Indore
Abstract: The automobile industry has been growing at a phenomenal pace and markets are attracting investments of all kinds. The eagerness of market entry can be seen from the fact that all natures of collaborations, joint ventures and possibly all market entry strategies have been applied by foreign companies and can been seen and sighted in India. All this is for the sake of having a share in the pie of the hottest market among all the major emerging economies. The automobile sector was not always like this and has changed recently this call in for enquiry of its current status and future trend. The paper attempts to analyze the sector and put forth a platform for developing future course of action.
INTRODUCTION
India is among the top two-wheeler exporter in the world and it has emerged as a key manufacturing hub for two-wheeler in the world. Two-wheeler exports are driving the
1|Page
Gravity automotive industries export in India apart from auto component. In the automobiles exports, two-wheeler constitutes over 60% of the exports. The two-wheeler industry consists of three segments mopeds, scooters and motorcycles. The high demand for Japanese-designed Indian motorcycles is the main factor propelling the export of the two wheeler industry. In addition to these three segments there is a segment called step-thrust. Step-thrust are small motorcycles driven and gears. Step-thrust start from 49cc and can go up to 90cc. Both 2 stroke and 4 stroke step-thrust are manufactured. The global two-wheeler industry is currently at more than 40 million units per year. By 2017 the size of the industry is expected to touch 60 million units. China is the largest producer with more than 17 million units, and India is in the second place with 7.7 million units. The Japanese brands of Honda, Suzuki, Yamaha, and Kawasaki dominate the world market. Though Japan itself produces only 7 million units its brand control 50 percent of the two wheelers produced in the world. This is because its brand dominates in the low cost countries like china, India, Indonesia and Thailand. Honda has 30% of the world market while Yamaha and Suzuki have another 20% between them. Till recently Japan was dominating the global two-wheeler markets. In 1983 Japan was exporting 2.6 million motorcycles. The majority of Japans two-wheeler exports were expo exported to North America and Europe. In terms of size the major portion of around 1 million units was in the above 250 cc segment. In the 51-125 cc segments Japan exported only 124,335 units and in the 125-250 cc its exports were 183,980.Currently China exports more than 2 million units per year. The biggest Chinese manufacturers are Zongshen group, Qingqi, Jialing and Hangzhou Lifang. In comparison, exports of Indian twowheelers are 0.63 million but growing at around 31 per cent. China and India are expected to dominate the global two-wheeler market in the future. Recently, Indian motorcycle manufacturers have built a slight edge over the Chinese manufacturers in the exports markets, especially in Sri Lanka and other countries like Africa and Latin
America. This is due to the high quality and performance of Indian motorcycles. It is reported that in Sri Lanka the ratio of Chinese motorcycles to Indian motorcycles has shifted from 90:10 to 15:85. From a very modest beginning, the Indian passenger car industry has come a long way. The industry has the presence of global players like General Motors, Ford, Suzuki, Toyota, Mitsubishi, Honda, Fiat, Hyundai, Daimler Chrysler, Skoda, Nissan, BMW and Renault. MNCs are widening their product portfolio, which will further intensify competition. This also marks the next phase of the Indian auto industry after the sector was opened up. Looking back, the passenger car industry in India has marked five phases: Phase I (upto 1984) Phase II (1985 to 1992) Phase III (1995 to 2000) Phase IV (2001-04) Phase V (2005 and after) Regulated market Exploring new technology Hurried entry of world players Market maturing with intense competition Globalisation. and restrained
The Indian automotive sector has come a long way and has tasted, globalization and its effects. It is very necessary to understand the future for creating policy and strategies to enhance global market share and to eventually achieve a global competitive advantage. An attempt has been made to describe the current trend and to analyse the future. 3|Page
Gravity
Review of Literature
Indian Automobile industry has been growing rapidly over the years, both in the domestic market as well as in the export market. Starting in 1940s, it has come a long way, particularly after the liberalization, and now making aggressive inroads in the global market, with acquisitions, green fields and exports. Nearly all OEMs and Tier 1 suppliers have established operations in India and are buying from Indian auto components manufacturers, not only for Indian operations but also for evolution. The industry has a great future potential and ACMA, SIAM, and the Government of India have come up with automotive Mission Plan, 2016, for the sector. However, it needs heavy investment in research and development, for meeting the challenges of the global automobile sector (Pillani 2008). For Indian-owned automobile companies, since the mid-1990s the R&D efforts got a major push due to the imposition of stringent Euro norms requiring a quick up gradation of engine, and the intense market competition. After 1991 with FDI liberalization many global tier-1suppliers started operations in India. In the mid-1990s many global OEMs entered India; besides, they have encouraged their existing preferred suppliers to establish facilities here. Since around 2000 in the Indian automobile sector the improvements in safety features and pollution norms, and the introduction of telematics, etc., have involved technological improvements and imports (SIAM officials, quoted in Singh, 2007). At present, almost all the prominent firms in the Indian auto component industry have links with at least one international player - operating as a subsidiary/JV or in a technical tie-up (Singh, 2007). McKinsey & Company (2006) found that in India and China the large auto component suppliers have improved their operational performance over 200204 in terms of the rejection rates and productivity. The quality maturity is the most critical differentiator, being strongly related to both the domestic and exports growth rates. The best performers quality levels are comparable with their TRIAD counterparts. Although there have been increasing incidents of global OEMs shifting more and more
of the product development responsibilities to developing countries, in India R&D intensity of foreign affiliates has been relatively low in the vehicle sector (Narayanan and Vashisht, 2008; Singh, 2007). For the auto component firms (Rasiah and Kumar, 2008) in an econometric analysis found similar R&D intensityaverage of R&D expenses to sales and R&D employment intensityfor foreign and local firms. In the auto sector the R&D is still primarily oriented towards process development. The government should particularly facilitate the strategic-asset seeking OFDI, as is being done in China. While the OFDI regulations have been liberalized in India, a focused policy is required to strengthen the multinational operations of Indian firms, with targeted national champions being supported through information, finance and other support services (Pradhan, 2008).
Objectives:
The major objective of the research is to analyze the course of Indian automobile industry with special reference to two wheeler and passenger car segment and forecast the future ahead.
Hypothesis:
Ho1 :
The course of Indian Automobile sector with reference to two wheeler and passenger car segment has been positive.
Ho2 :
The future is positive.
Research Methodology:
The universe of research shall confine to passenger car segment and two wheelers. The research is descriptive in nature and shall be based on secondary data. The data is purchased from the library of IIM Indore and NASDOC, ICSSR,New Delhi. The source
5|Page
Gravity of tables has been stared questions in lok sabha and other government agencies supplied through India Stat and CMIE Business Beacon. The well tabulated data was administered with descriptive statistics and results were generated.
Results
a) Passenger Car: With about 13 existing players in the passenger car segment, the total installed capacity is of the order of over a million and a half vehicles. The capacity utilization was as high as over 85% in 2006-07. Total investment by the car companies is estimated at around Rs 175 bn with related component makers chipping in another Rs 50 to 60 bn. The scale of operations of Indian car plants is now beginning to match with the world standards. The average capacity of a typical Indian car producer exceeds 100,000 units a year. It is 250,000 in Japan and the US; 125,000 in Brazil and 175,000 in South Korea. Volumes of 100,000 to 150,000 are considered viable. There was a noticeable slowdown in demand towards the end of 1990s. The beginnings of the new century witnessed a revival in demand. The quinquennium 2002-2007, in fact witnessed on an average a CAGR of 17.8%, much above the Indian industry. Total market of passenger cars was estimated at Rs 476 bn. in 2007-08 which means an increase of 12% over that of the preceding year. The car sales in 2007-08 including exports was 1.5 mn vehicles, about 18% increase on the preceding year's car sales of some 1.25 mn units. A new trend in the passenger car market is the exchange schemes launched by car makers. Besides there is the emergence of pre-owned cars market. In 2006-07, an estimated 12.5% of all car sales were achieved through exchange of old models on the back of brand loyalty. Maruti has been a major beneficiary selling reportedly 76,500
cars under the scheme. Others benefiting include Hyundai (16%), GM (8 to 10%) and Honda (6%). The sale of pre-owned (or second hand) cars has caught on. Not only Maruti which sold 84,500 cars through its 'True Value' chain of marketing outlets, even global majors like Porsche (40 cars) and Bentley have also joined the bandwagon. Nearly 20% of the pre-owned market is organized. Some 60% are sold by individuals through word of mouth, while 20% of the market is controlled by brokers. The passenger car market was segmented in mid 2008-09 as against 2006-07 as follows: Table 01 2006-07 Premium and luxury Executive segment Mid-size Small and compact 0.40% 3.20% 17.20% 79.20% Mid-2008-09 0.80% 2.60% 20.30% 76.30% Source: India Stat.Com
It is obvious that the market continues to be overwhelmingly skewed in favor of lowend (priced) cars. The share of the executive segment, however, has nearly doubled in the last few years, thereby cutting into the market share of other segments. Luxury car market segment, which clocked sales of 2500 units in 2006-07, aims to sell 4000 to 5000 units in 2007-08. Besides the vehicles manufactured in India, Bentley, 7|Page
Gravity Rolls Royce, Lamborghini and Audi are in the Indian market through imports, albeit in small numbers. Audi, however, has created an assembly facility at Skoda plant at Aurangabad in Maharashtra, which was to be fully operational by September 2007. Individual buyers, mostly small entrepreneurs, outnumbered corporate to form a significant chunk of the car buying population. Several car buyers come from information and service companies. Individual buyers constitute over 70% of the total demand today, overtaking corporate buyers, who traditionally represented around 60% of total demand some years back. Against all the boost that marked the growth of the passenger cars segment, the economic slowdown, leading to a stagnation and recessionary conditions in the USA and other developed countries caused a gloom in the industry not only in India but world over. Against the growth of 14% in 2007-08, the first half of 2008-09 witnessed a slowdown with only 5.30% growth against nearly 13% in the first half of the preceding year. The segment received a severe setback with the sales registering a decline in October 2008. In November 2008, the decline was more than 19%. The industry is now hoping that the measures undertaken by the Government to offset the effects of economic meltdown worldwide might salvage the falling trend. The signs at least in the short-term are not propitious. There is a surfeit of new models and new innovations. Leading brands of cars in India now include: Maruti 800, Esteem, Omni, Zen Estillo, Swift, SX4, Alto Wagon R, Opel Astra, Opel Corsa, Chevrolet Optra, Aveo, Aveo UVA, Spark, Mercedez, City, Civic, Accent, Accord, Sonata, Santro, Indica, Fiat Palio, Sienna, Lancer, Ford Ikon. Ford tried with Mondeo, while GM's Swing made some healthy waves in its segment. Skoda introduced Octavia, and has followed with Superb and Fabia to strengthen its presence.
Volvo is entering with its passenger cars on the back of Ford India, whose US parent owns the Swedish company's car business, globally. It plans to introduce high-end Volvo cars in India, such as a its C30 and C70 cars which have a common platform with Ford's Focus, slated for an Indian launch next year (2008). However, it is to make its debut in India with its S80 Sedan and SUV XC90 later in 2007 itself. These are priced Rs 4 mn and Rs 6 mn, respectively, and would be wholly imported. Incidentally, platform sharing is common in the premium and executive segments of passenger cars. This segment grew by around 50% in 2006-07 to over 44000 units. The segment among others is targetted by DaimlerChrysler, BMW, Audi and Porsche. Others like GM, Honda and Hyundai, besides, Toyota have a very significant presence in the segment. The mid-sized segment with a share of over 17%, witnessed a lot of activity in 2007. Renault-Mahindra's Logan, Maruti's SX4 were both introduced in April-May. Hyundai is to roll out a new sedan in second quarter of 2007, besides its Getz Prime already in the market and Honda in late 2008. Of the 50 new launches expected, nearly half are expected in the mid-sized segment to take on Esteem, Indigo, Honda City, Hyundai Accent and Verna, Ford Ikon and Fiesta and Chevrolet Aveo. Most of these are priced between Rs 5 & 8 lakh. Fiat has also launched Fiat Stile, the maiden offering from its new plant. Given the potential, most players in this sector are introducing new models to lure buyers. As the players multiply, the Indian consumer has a plenty of variety and choice in the mid-size and small segment. Although small car category continues to be dominated by Alto, Santro and, Indica, the segment would offer the consumer the choice of pick and choose with new offerings. The entire car market was likely to witness a fair amount of churning following the Tata Motors 100,000 rupee car slated for a 2008 foray. As the project got delayed, the 9|Page
Gravity change was yet to unfold itself. With nearly 20 more new compact models likely to flood the market by 2010, the market will be more crowded than ever before. Besides GM's Spark, Honda's Jazz, Tata-Fiat's Gravede Punto and Volkwagen's Polo are likely to be a part of these new forays. This is likely to impact two-wheeler's market. It is expected that 10-15% of the two-wheeler market will switch over to four-wheelers. The size of the entry-car market is likely to increase by 2 to 3 times, which will ensure that both Maruti and Tata Motors could co-exist along with new entrants. Honda Motor Company (HMC) was planning to launch a small car through its subsidiary Honda Seil Cars India (HSCI), by 2010. The car is expected to take on Maruti Swift, Hyundai Getz, Fiat Palio, General Motors UV-A and when launched, Volkswagen Polo. Honda is planning to launch new version of premium sedan Accord following a planned facelift in 2007. The company has plans to increase the production capacity to 100,000 units by the end 2007, from the existing 60,000 at its Greater Noida facility. The plant produces City, Civic and Accord brands of cars. Rajasthan state is the likely site for its second car-making facility to take on the production of its proposed range of hatchback models, including the small car offering Jazz. Tata Motors and Fiat had agreed on entering into a joint venture to make cars and engines at a proposed investment of Rs 40 bn. While the annual capacity for cars would exceed 100,000, the plant will also have a manufacturing capacity for 200,000 engines. The production was slated to start towards the beginning of 2008. The venture located at the Fiat plant at Rajnangaon in Maharashtra, will also produce Fiat Grande Punto and the Linea for Indian and overseas markets. As a follow up to the introduction of the entire Mercedes Benz line to India, DaimlerChrysler is contemplating to bring in its Chrysler range of vehicles as well. Hyundai as well is eyeing the sub-compact car market in India by bringing in the 800cc model produced by its sister concern, Kia Motors Corporation of South Korea.
This small car is likely to be priced below Rs 200,000 and possibly as low as Rs 160,000 to 170,000, slated to be rolled out in 2008-09. Maruti launched its Zen Estilo, priced about Rs 10,000 lower than the entry level of its older version of Zen. The company continues to be a leader in the segment. Maruti launched SX4 Sedan in May 2007. It is a replacement vehicle for its Baleno which was phased out in early 2007. SX4 is the second of Suzuki's global models after Swift. The third, the grand Vitara, a SUV, would make its debut in the next few months. Maruti has a 14.8% share in A-3 segment where SX4 is grouped. However, it is much lower than its share in A-1 and A-2 segments at 100% and 58%. The company launched AStar towards end of 2008-09 and Ritz in the middle of 2009-10. Both have been received well in the market. It had earlier introduced diesel version Dzire' of its Swift as a Sedan, which is also doing well. Volkswagen had been planning to assemble Passat as its maiden offering at its subsidiary, Skoda Auto India's plant at Aurangabad mid -2007. The car maker has also finalised plans to set up a manufacturing facility at Pune with an investment of Rs 2,450 mn (USD 530 million). While Skoda is best-known in India for its Octavia, Fabia, Superb and Laura, other brands for which it has marketing arrangements in India, include Bentley, Bugatti, and Lamborghini. BMW make an entry with its top-of-the-line 7 series stables into the Indian market. The debut marked the introduction of two 3-Series cars 320i and 320d, with price tags in the Rs 25 mn range. Additionally, it has four models from its 7-Series stables 730ld, 74li, 750li, 760li for sale through direct import route to be imported as fully built units and sold in India in the Rs 8 mn range. BMW group is investing Rs 11000 mn to build an assembly plant in Chennai. It is targeting an annual sale of 150,000 units of BMW, Mini and Rolls Royce cars in the Asian markets by 2008.
11 | P a g e
Gravity Diesel cars have increased their market share to over 30% from the earlier 20% in the two years. Hyundai Verna, Maruti's Swift (which remains the most sought after diesel car), Chevrolet Aveo and Hyundai's Getz and Sonata which will have diesel variants shortly, are in the forefront of the diesel push. Of the cars sold under Fiesta and Verna brands, 70% to 80% are said to be diesel versions. GM was planning a diesel version of Optra after the success of its CNG variant, along Fabia from Skoda Auto, while Tata Motors, has introduced CRDi version of its Indigo Sedan. Likewise, M&M Renault's maiden offering Logan is also a diesel variant. The government, which had a major stake in this industry, has divested from Maruti Udyog. A public issue was very successfully made. Suzuki is now in full control, although very little has changed in the management style and systems. Since mid-2006, the D segment has been marked by great launches by all those who matter in the Industry, not only in India but globally. Honda Civic entered into Indian market in July 2006. With its entry, the highly competitive entry-level D-segment has got revamped. Honda City in premium C-segment and Honda Accord in Upper Dsegment along Civic, present a very impressive range from the car maker. The launch of a new variant of Corolla in Japan, which would find its way to the Indian market, may improve on Toyota's performance in the market in respect of passenger cars, as earlier the sales were 20% down. Skoda's Octavia in the segment is going high on its diesel variant. As indicated, Volkswagen is entering into the premium segment Passat to be assembled at Skoda Plant slated for mid 2007. A new plant is coming up at Pune which would roll out Polo hatchback and notchback in 2009. Its plans cover production of mid-sized Jetta in India. It is however, building market on imported cars like Touareg and Phaeton in India.
GM launched Chevrolet Spark (April 2007) to take on Alto, Zen Estilo, Wagon R and Santro. The car is based on Daewoo's Matiz platform adequately modified to give a different look. Earlier, it had launched Aveo UVA. The company aims to capture 10% market share by 2010. It has set a target for sale of 40,000 small cars in 2007-08. In 2003, following listless performance of its Opal series, it came with Chevrolet brands (Tavera-SUV, Optra). Spark now being made at Halol, would eventually be manufactured at GM's Talegaon (Maharashtra) plant which is coming up with a capacity of 140,000 units to take GM's overall Indian capacity to 225,000. GM also launched Optra Magmun in June 2007. It is a product from GM-Daewoo in Korea. Nissan Motor India, which had launched its SUV X-Trail in 2004, is into the passenger cars segment with Teana launched in early 2007 and is to compete with Honda Accord and Toyota Camry. Teana is expected to register sales of 350 units a year. It is a 2.3 litre capacity passenger car. The company has plans to foray into small and compact car segment following the entry of GM's Spark. It is setting up a plant facility at Chennai jointly with Renault and Mahindra & Mahindra and the facility is expected to be operational in two years. Total market of passenger cars was estimated at Rs 476 bn in 2007-08, which meant an increase of 12% over that of the preceding year. b) Two Wheelers The Indian two-wheeler has witnessed steady growth over the years. On an average Indian two-wheeler exports have increased by about 1, 00,000 units every year since 2001-02. But the growth rate from 1995-2001 in not quite impressive. Due to the joint venture agreements between Indian motorcycle manufacturers and Japanese manufacturers exports of motorcycles from these joint ventures were low. During this period the average number of two-wheelers exported was just over 1, 00,000 units. Motorcycles are the major contributor to the total two-wheelers exports. Table 2 gives 13 | P a g e
Gravity details about the growth of exports of two-wheelers in India over the period 2001-02 to 2010-11. From 2001-02 to 2005-06 all three segments registered a significant growth rate. Among the three segments motorcycles have witnessed tremendous growth. In the financial year 2001-02 motorcycles accounted for about 50% of the total number of two-wheeler industries exports and now in have increased to a mammoth 88%. In the year 2005-06 most of the exports were accounted for by the smaller engine capacity bikes of between 75 cc to 125 cc. This segment accounted for 70 per cent of motorcycle exports in the last fiscal followed by the 125 cc to 250 cc segments, which accounted for 29 per cent of sales. in the year 2005-06 Bajaj Auto exported 165,288 units with Hero Honda exporting 92,266 units. TVS Motors Ltd exported 54,078 motorbikes and Yamaha 55,063 motorcycles. In the financial year 2006-2007 the Indian two-wheeler industry exported 6, 19,138 units as compared to the previous years 5, 13,169 units. In the financial year 2006-07 motorcycles alone contributed 88% of the total exports in the tow-wheeler industry. Within the motorcycle segment, the 75-125 cc segments are a major contributor to motorcycle exports. 125-150 cc segments have also contributed significantly. Mopeds and scooters exports have declined drastically. Overall exports share of production for two-wheelers has increased from 5.6% in 2005 to 6.8% for the financial year 2006-07. Even though exports of mopeds and scooters have declined in the 2006-07 period their exports share from production has increased. Currently export sales of two-wheeler account for 6% of the total two-wheeler sales. In terms of value the export of Indian two-wheelers is still. As indicated above, EEPC figures indicate that 2 and 3 wheelers exports grew from Rs. 336.07 cores in 2000-01 to Rs. 1085.12 cores in 2004-05. Since two-wheeler exports in 2006-2007 were 619138 units from 366407 in 2004-05 it is expected that the total two and three wheeler exports in 2006-07 would cross Rs.2000 crores. (The minimum price of an Indian motorcycle is US$ 600). The growth in exports of two-wheelers in India has a very close correlation with the growth of
production of two-wheelers in India. The companies who have crossed 1, 00,000 units in production usually take to exports. This serves two purposes. A company can export when there is a fall in domestic sales and maintain its production. Secondly, companies are using exports to build scale and thus reduce the overall cost of production. The motorcycles production has increased astonishingly while production of scooters and mopeds has declined. This is partly due to the consumers preference for a fuel efficient two-wheeler which is also macho and sleek. Another reason is the growth in rural demand. The rural customer wants a two-wheeler which is sturdy and fuel efficient. The only vehicle which meets this demand is the motorcycle and hence the growth in sales of motorcycles. In terms of growth the production of the twowheeler industry has been growing at the rate of 9% to 18%. Motorcycle exports are showing continuous improvement and the year-to-year growth is around 40 percent. The scooters and mopeds segment did not show much growth in exports. This is primarily due to the fact that in most countries the only form of two-wheeler used is the motorcycle. Even though motorcycles exports have risen to around 0.55 million they are much smaller than the exports of China which are around 2 million. Japan is the second biggest exporter of motorcycles and exports around 1.5 million motorcycles. However, Japan exports motorcycles in the above 250 cc capacity. India does not export motorcycles in the above 250 cc segment and most of the motorcycles exported from India are in the 100-125 cc capacity. Different countries require different types of motorcycles. Indonesia uses only step thrus and probably most of the countries in the ASEAN region also use only step thrus. The Western World especially Europe and US use sports bikes which are in the above 250 cc category. Countries like Pakistan use motorcycles in the 70 cc capacities. Hence, if India wants to be a major exporter it has to manufacture motorcycles especially for the exports market. Most probably it will have to manufacture motorcycles in the country of sale. This is the plan in TVS Motors setting up a plant in 15 | P a g e
Gravity Indonesia to manufacture step-thrus. Indonesia has a market for 4 million motorcycles. This plant will help in tapping the Indonesian market and also enable it to export to other ASEAN countries. Bajaj is also in the process of putting up a plant in Indonesia to manufacture motorcycles and assembly plants in Nigeria and Iran to manufacture motorcycles. Indian motorcycles are in the midrange. Quality wise they are good but are not costly. Chinese motorcycles on the other hand are much cheaper than Indian motorcycles. The Chinese motorcycles range from US$225 270 for 50cc, US$600. There are some markets where Indian motorcycles may not be able to compete with the Chinese because of the price. Quality wise Indian motorcycles are better than Chinese motorcycles. Japanese motorcycles are technologically superior to Indian motorcycles. Currently, these two do not compete with each other.
Conclusion
In brief, the car market in India was in a highly surcharged stage in which cut-throat competition was heating up with the introduction of varied product improvements and models. The producers have been doing well in the passenger car segment, thanks to the introduction of new models, but due to the meltdown of 2008 triggered by the US financial crisis, the automobile industry has been facing a major setback. The commercial vehicles segment is still facing a critical position. It appears that the recovery could take a fairly long time despite the very huge bailout and support by the governments worldwide. The export of two-wheelers from India has a lot of bearing on the two-wheeler industry in India. The Indian two-wheeler industry is around 8.5 million and is growing at nine per cent. This means that for the industry to reach 15 million it will take another eight years. By that time the global market would have crossed 60
million. Some of the Indian companies like Bajaj Auto and TVS Motors want a piece of the global market. Hence it means that the Indian two-wheelers will have to globalize their business. Similar to what Japanese companies did in the 1980s Indian companies will have to have operations probably in all continents. The Indian two-wheeler exports are mainly targeted in the 100-125 cc motorcycles. However, its main competitors China and Japan are exporting a lot of above 250 cc motorcycles. The above 250 cc motorbikes have an export potential of over one million motorcycles. Indian companies should work aggressively by buying technology, establishing technological collaboration with leading players to tap this market. Overall the Indian two-wheeler industry is placed between the Japanese and Chinese motorcycles. Indian motorcycles are of better quality than Chinese motorcycles but they are costlier than Chinese motorcycles. Indian motorcycles do not have the sleekness of Japanese motorcycles but are almost as good in terms of quality. Hence it is possible that Indian motorcycle manufacturers may be able to eat in to some of the export market of the Chinese and Japanese motorcycle manufacturers. Export of two-wheelers from India is expected to continue increasing in the next five years. However, this means that Indian manufacturers will have to globalize at a faster pace and also improve their product mix and product mix and technology to meet the increasing the demand for two- wheelers in developing countries.
Limitations:
The costly secondary data which needs to be purchased from CMIE and India stats is the primary limitation of the research. The research can be conducted on wider strata and in all segments of the automobile industry to produce more comprehensive results and forecasting. Even a model can be developed.
17 | P a g e
Gravity
References
ACMA (2008a), Annual Report 200708, ACMA, Delhi. ACMA (2008b), Status of Indian Automotive and AutoComponent Industry: Status Report, accessed 8 August 2008; www.acmainfo.com. ACMA News, various issues, Delhi: ACMA (www.acmainfo.com). ACT now, various issues, Delhi: ACT, a Division of ACMA (www.acmainfo.com). AMP 20062016 (2006), Automotive Mission Plan 20062016: A Mission for Development of Indian Automotive Industry, Delhi: Ministry of Heavy Industries & Public Enterprises, Government of India, December (AMP 200616.pdf). McKinsey & Company (2006), Towards a New Global Order for Automotive Suppliers: Findings from the China and India Supplier Survey, McKinsey & Company, Mumbai, August. Narayanan, B.G. and P. Vashisht (2008), Determinants of Competitiveness of the Indian Auto Industry, ICRIER Working Paper, No. 201, January. Pillania, Rajesh K., Indian Automobile Components Industry: A Global Perspective (July 13, 2008). Journal of Business, Vol. 3, No. 2, pp. 34-46, 2008. Available at SSRN: http://ssrn.com/abstract=1159390. Pradhan, J. P. (2008), Indian Multinationals in the World Economy: Implications for Development, Bookwell Publisher, New Delhi. Rasiah, R. and A. Kumar (2008), Foreign Ownership, Technological Intensities and Economic Performance of Automotive Parts Firms in India, Asia Pacific Business Review, 14(1), pp. 85102. Singh, Neelam (2007), Automotive Industry in N. Kumar and K.J. Joseph (eds.) International Competitiveness & Knowledgebased Industries in India, pp. 233279, New Delhi: Oxford University Press.
Annexure:
Table 02: Growth in Exports Year Scooters Motorcycles Mopeds Total Growth Exports 72.47 47.51 38.24 40.05 20.65 12.67 12.91 11.43 10.26 in
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 20010-11
28,332 32,566 53,687 60,699 83,934 35,685 68,939 74,592 80,246 85,900
56,880 1,23,725 1,87,287 2,77,123 3,86,054 5,45,887 5,95,012 6,89,922 7,84,832 8,79,742
18,971 23,391 24,078 28,585 43,181 37,566 44,981 49,462 53,944 58,425
1,04,183 1,79,682 2,65,052 3,66,407 5,13,169 6,19,138 7,08,931 8,13,976 9,19,022 10,24,067
Source: CMIE
19 | P a g e
Gravity
Growth in Exports 80.00 60.00
40.00
20.00 0.00 1 2 3 4 5 6 7 8 9
Growth in Exports -
Table 3: Growth in Exports of Two-Wheelers Global Market Year Scooters Motorcycles Mopeds Total Growth Produc. 9.26 18.87 10.74 in
1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-02 2002-03 2003-04
879759 1259408 1315055 1279549 1322928 1225895 1030803 937506 849434 935279
647521 809097 988709 1125958 1387276 1794093 2183430 2906323 3876175 4355168
516936 623114 668666 667242 671699 724510 694974 427498 351612 332294
2044216 2691619 2972430 3072749 3381903 3744498 3909207 4271327 5077221 5622741
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
987498 1021013 943974 907350.08 883256.12 859162.16 835068.21
5193894 6207690 7112225 6752104.04 7292651.22 7833198.40 8373745.58
348437 379994 379987
6529829 7608697 8444168
16.13 9.32 10.9
319757.15 8067391.83 11.03 290854.74 8573575.33 10.60 261952.32 9079758.83 10.17 233049.90 9585942.33 9.74
Growth in Exports
12000000 10000000 Axis Title 8000000 6000000 4000000 2000000 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Table 5: Growth in Exports of TwoWheelers Global Market Scooters 879759 1259408 1315055 1279549 1322928 1225895 1030803
Axis Title
21 | P a g e
Gravity
Table 4: Percentage of Vehicles Exported of Total Production Year Scooters Motorcycles Mopeds Total Growth in Percentage of Vehicles Exported 45.08 33.05 19.11 20.14 8.75
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
3.02 3.79 5.66 6.15 8.22 3.78
1.93 3.28 4.3 5.34 6.22 7.68
4.44 6.45 7.26 8.2 11.36 9.89
2.44 3.54 4.71 5.61 6.74 7.33
Source: India Stat

Table 05: Demand : Past & Future
Year 1990-91 1991-92 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2019-20 th nos 182 166 448 448 435 577 513 558 612 821 981 1110 1260 1450 1530 1637 1853 2010 2182 2367 2568 3859
4500 4000 3500 3000 2500 2000 1500 1000 500 0
Axis Title
19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 90 91 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 19 - - - - - - - - - - - - - - - - - - - - - 91 92 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 20
th nos 18 16 44 44 43 57 51 55 61 82 98 11 12 14 15 16 18 20 21 23 25 38
Table 06
Market Segmentation
Segment North East West South Over Rs 1.0 mn Rs 501,000 to Rs 1.0 mn Rs 301,000 to Rs 500,000 Under Rs 300,000 Source: Inescos - CIER Share(%) 43 8 26 23 0.8 3.2 49 47
Table 07
Market Growth Rates

1990-91-1996-97 1996-97-2001-02 2001-02-2006-07 2006-07-2011-12 2011-12 - 2019-20 Source: Inescos - CIER 16.20% 4.50% 17.70% 9.80% 8.50%
23 | P a g e
Chapter Two
An Empirical Analysis on Consumers perception of Selected Malls in Indore City of Madhya Pradesh
Kanika Shrama, StudentPrestige Institute of Management and Research, Indore Naina Pancholi, StudentPrestige Institute of Management and Research, Indore | Anupam Dubey, StudentPrestige Institute of Management and Research, Indore | Nishant Joshi, Assistant Professor Prestige Institute of Management and Research, Indore
Abstract:
Consumer perception is centred around the buyer of product and consumer of a service, who gets influenced by the value created by marketers in their products and services (Laura). Consumers act and react on the basis of their perceptions, not on the basis of objective reality. For each individual, reality is a totally personal phenomenon, based on that persons needs, wants, values, and personal experiences. Thus, to the marketer, consumers perceptions are much more important than their knowledge of objective reality. For if one thinks about it, its not what actually is so, but what consumers think is so, that affects their actions and their buying habits. And, because individuals make decisions and take actions based on what they perceive to be reality, it is important that marketers understand the notion of perception and its related concepts to determine more readily what factors influence consumers to buy (Schiffman, Kanuk and Kumar).Indore city in the state of Madhya Pradesh has been reffered to as financial capital of the state being so it also has attracted real estate developers to develop both residential and commercial properties. In the past 5 years Indore has seen some very big malls either operational or about to start their operations. With the population of around 35lacs and primarily being an agrarian economy, Indore has also become an educational hub thus, attracting a huge number of young professionals. Indore has also been able to retain these professionals in the city post completion of their professional education. Thus, the city has created a niche demand for malls which have been defined by Pearson Publications as, mercantile establishment consisting of a carefully landscaped complex of shops representing leading merchandisers; usually includes restaurants and a convenient parking area; a modern version of the traditional marketplace. This brings us to the 24 | P a g e
problem of what kind of perceptions do consumer have for a few selected malls, in Indore city. The study shall attempt to benefit real estate developers to make good design, shall benefit marketers and managers of industry to create an ambiance of ease at malls and shall be a pivotal guideline for future researchers. The nature of the study is exploratory based on primary data collected by a well structured schedule.
INTODUCTION
Consumer perception is centred around the buyer of product and consumer of a service, who gets influenced by the value created by marketers in their products and services (Laura). Consumers act and react on the basis of their perceptions, not on the basis of objective reality. For each individual, reality is a totally personal phenomenon, based on that persons needs, wants, values, and personal experiences. Thus, to the marketer, consumers perceptions are much more important than their knowledge of objective reality. For if one thinks about it, its not what actually is so, but what consumers think is so, that affects their actions and their buying habits. And, because individuals make decisions and take actions based on what they perceive to be reality, it is important that marketers understand the notion of perception and its related concepts to determine more readily what factors influence consumers to buy (Schiffman, Kanuk and Kumar). Madhya Pradesh often called the heart of India, is a state in central India. Its capital is Bhopal. Indore is the largest city and is the commercial capital of the state. It is 190 kilometres, west of the state capital Bhopal. It has the population of 32.7 lakes (2011 census). It is surrounded by two major industrial areas namely- Pithampur and Dewas. It is also turning into a educational hub having both IIM and IIT which is unique and exists only in Indore in India. The city is also surrounded by rich agricultural belt, which is one of the best in India. All the above causes high flow of money in the markets making Indore one of the key and favourable destinations for big retailers, 25 | P a g e
Gravity mall developers and realators. Thus, the city has created a niche demand for malls which have been defined by Pearson Publications as, mercantile establishment consisting of a carefully landscaped complex of shops representing leading merchandisers; usually includes restaurants and a convenient parking area; a modern version of the traditional marketplace. This also brings in the challenges of a strategic model that matches consumer perception and tastes for attracting him to select a specific mall for his shopping visits.
Review of Literature:
As the economy and society have changed, so retailers have responded and shopping as an activity has altered enormously (Dawson and Boroadbridge, 1988). Retailing is one of the most dynamic and rapidly changing sectors of Indian industry bearing little comparison with the business that operated 50 years ago. Multiple retail companies now dominate the sector, to the threat and decline of small independent business. These independent stores face increased pressure from the multiple retailers, superstores, small store format (such as high street stores), petrol forecourts and many are being squeezed out of existence altogether. Even the wholesale symbol groups have been developing their own store portfolio. Independents who enjoyed over 80 percent of the market share till early 90s have seen this market share halve by 1995 to just over 40%. Organized retail has started to spread its roots in the Indian market since past one decade and is gradually making mark among all sections of the society. This paper explored the way organized retail has dramatically changed not only the Indian traditional retailing structure by also the consumption behaviour. The consumption behaviour was examined and results showed that, for consumers, the shopping mall or variant of organized retail format is the preferred type of retail store, due to convenience and variety,Mridula (2007). Nisa (2007) argued that India is one of the
largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas, where mostly traditional retail outlets, commonly called kirana stores exist. These are unorganized, operated by single person and runs on the basis of consumer familiarity with the owner. However, recently organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. Many semiurban areas also witnesses entry of such organized retail outlets. Till now, entry of foreign retailers was restricted in Indian retail market because of the ban on Foreign Direct Investment in Indian Retail Sector. But recently, as government has changed its policy and the cabinet has allowed 51 per cent FDI in single-brand retail, the prospects of foreign players entering India became high. But there is also a powerful counterargument: each sector that has been opened to private investment, such as insurance, banking, civil aviation etc. has grown. And the consumer has benefited every time. A study by Luis Guasch (2002), Clive Harris (2003), and the McKinsey Global Institute (2003) have shown that in almost all cases FDI had a largely positive impact on productivity (the key criterion for assessing long-term economic performance) and on the coverage of services. But ill-designed privatization processes, contracts, and regulations have often led to poor returns on investments or, in some cases, to excessive returns. The financial and infrastructure sectors are tricky to regulate as quasinatural monopolies, but FDI is not to blame for government shortcomings. In sectors where competition is stronger, FDI has had a much more obvious positive impact. Shaw, Dawson and Blair (1992) found that most consumers buy many products, and they operate in a pressured work environment with little time available to evaluate, in formal way, detailed and subtle criteria. They therefore argued that buyers use only a subset of product requirements (i.e., evaluative criteria) to decide between different products and retailers when making actual purchasing decision. 27 | P a g e
Gravity Although store choice has been researched extensively in literature, the format choice has been a relatively limited area of work. The format choices have been studied for Retail format evolution by Rousey and Morganosky (1996); Price format sensitivity of shoppers and its impact on Shopping Basket Size by Bell and Lattin (1998); Bell, Bucklin et al. (2000); Stability of Format Choices through comparison of inter and intra format switching behavior and role of market conditions by Benito and Galego (2005); Galata and Bucklin (1999); Perceived shopping utility of different Price formats by Bell, Tang and Ho (2001), Effects of exogenous variables and pricing formats on store choice by Fotheringham (1988), Kahn and Schmittlein (1989); Timmermans (1997); Retail format competition by Bhatnagar and Ratchford (2004). The concept of consumer perception, considered as the way consumers see the store in their minds, based on tangible and intangible attributes, deserved a great deal of academic and empirical attention, during the last four decades. The importance of studying the image is based on the assumption that the store possessing the most congruent attributes with the image desired by consumer will have better chance of being selected and patronized (Martineau, 1958, Doyle and Fenwick, 1974-1975, Amirani and Gates, 1993). Therefore, the consumer perception can be used as a marketing tool (Engel et al., 1995), or as a competition tool providing useful indications to managers about the most and the least appellative attributes to consumers, and therefore, the insights for the marketing mix conception.
Research Methodology:The research is exploratory in nature and the data used for the analysis is primary in nature. The data was collected using a schedule based upon 5 point likert scale having 19 questions divided in 4 sections. Initially a pilot test was conducted on 80 respondents for checking the questionnaire. A total of 183 respondents were
administered with the schedule and responses thus generated. The data collected was tested for reliability using the Cronbach's test.
The data was then administered with descriptive statistics for initial understanding. The data was then test for Kaiser-Meyer-Olkin Measure of sampling adequacy for finding weather factor analysis is applicable or not. Upon test KMO the data was tested with factor analysis and thus factors were generated which were then used for model generation.
Results:
Upon initially applying descriptive statistics it was observed that 70 percent people in Indore city are preferring malls over small retail stores. A majority of them are purchasing from malls. It is also observed that 67 percent people feel alleviation in their social status when they purchase from malls and big retail stores. They get influenced by family members and close friends in selecting a mall which they wish to visit. People do not mind whether brands available in these malls are Indian or foreign. Location of a mall is a very important aspect and 72 percent people feel that it helps them in selecting malls for shopping visits; they are hardly interested in the ownership pattern. 71 percent people feel that amenities and convenience facilities available in a mall influences them towards their selection of the mall for the shopping visit. This also influences their repeat visits. The data collected using a schedule was test for reliability using alpha test and the reliability was found to be 0.674 which is reliable. The data was then tested with 29 | P a g e
Gravity Kaiser-Meyer-Olkin and Bartletts test. The Kaiser-Meyer-Olkin measure of sampling adequacy tests whether the partial correlations among variables are small. Bartlett's test of sphericity tests whether the correlation matrix is an identity matrix, which would indicate that the factor model is inappropriate. Upon testing for Kaiser-MeyerOlkin the value of KMO came to be 0.7 (approx. after rounding off) this enables us to finally decide that we can conduct factor analysis. Upon conducting explanatory factor analysis we reduce 19 statements in 7 key factors namely Frequency Visits, Preference of malls , Influence of Family, Influence of Friends, Owner Ship Pattern, Seamless Malls and Free facilities to Kids of visitors. The model that can be visualised out of the results generated by the analysis of data could be as follows: With the basic assumption that mall owners and retailers wish to increase foot fall a possible model could be
IDENTIFICATI ON OF FREQUEN T VISITORS
Providing them, their families and Friends discounts, offers and extra facilities
CREATE A SEAMLESS ENVIRONMENT
INCREASE THE FOOTFALL & RETENTION OF OLD CONSUMERS

Figure:01 Source: Conceptualised by authors
Conclusion
The research has brought us to the conclusion that malls and big retail stores are finding space amongst consumers of Indore city. The recent burst of Malls trying to open in the city makes us think that in coming time consumer shall have more options and thus, creating a Perfect Market. The challenge now lies on mall owners who wish to increase the popularity of their malls. Focussing on these future challenges we have come to a conclusion where we have identified 7 Key Factors which show dynamism in such a fashion that six of them namely Preference of Malls, Family Influence, Influence created by friends, Ownership Pattern, Seamless Environment and Free Amenities and Facilities provided to kids of visitors act as independent Variables and put effect on the Frequency of consumers visiting the mall on any given period of time
31 | P a g e
Gravity we have formed a qualitative preliminary model to increase the footfall and retention of old consumers which is as follows:The mall owner/Developer/Builders should continuously carryout surveys to identify frequent visitors in their malls it is proposed that these identified visitors should be contacted and a database of their family members and friends who are close to them should be collected. Our Research resulted that around 70% of people are influenced by Family and Friends thus, creating a database and targeting these family members and friends shall help influencing the existing customer to revisit the mall and shall attract new consumers because we can use the technique to create a snowballing database where each new consumer can possibly attract some more consumers. We can further provide these frequent visitors their families and friends discounts offers and Extra facility About 72 percent of people who are part of our respondents felt comfortable with a seamless environment in malls, which if created along with the other two activities namely Frequent Visitors identification requiring extra facilities to family and friends of these visitors shall certainly put an effect in the increase in footfall and retention of old customers.
Limitation:
The research has been conducted with a small sample and should be conducted at a larger scale for more conclusive and comprehensive results. The model generated is still qualitative and a more quantitative and advanced version of the model along with its testing needs to be generated.
References
Bell, David R., Randolph E. Bucklin and Catarina Sismeiro (2000), "Consumer Shopping Behaviors and In-Store Expenditure Decisions," Working Paper, Anderson School at UCLA
Benito, O., Muoz-Gallego, P. A., & Kopalle, P. K. (2005). Asymmetric competition in retail store formats: evaluating inter- and intra-format spatial effects. Journal of Retailing, 81(1), 6579. Bentler, P. M., and Speckart, G. (1977). Models of attitude-behavior relations. Psychological Review, 86, 452464. Bhatnagar, A., & Ratchford, B. T. (2004). A model of retail format competition for non-durable goods. International Journal of Research in Marketing, 21(1), 3959. Fotheringham, Stewart (1988), Market Share Analysis Techniques : A Review and Illustration of Current US Practice in Neil Wrigley, Store choice, Store Location and Market Analysis, London, Routledge, 120-159 Kahn, Barbara E. Schmittlein, David C (1989), Shopping Trip Behavior: An Empirical Investigation, Marketing Letters, Dec, Vol. 1 Issue 1, pp. 55 69. Mishra, Mridula S., The Consumption Pattern of Indian Consumers: Choice between Traditional and Organized Retail (June 15, 2007). Available at SSRN: http://ssrn.com/abstract=994238 Nisa, Syeedun, FDI in Indian Retail Industry (April 1, 2007). Available at SSRN: http://ssrn.com/abstract=983711 Rousey, Sarah P.; Morganosky, Michelle A (1996), Retail format change in US markets, International Journal of Retail & Distribution Management, Vol. 24 Issue 3, pp. 8 16. Schiffman L S and Kanuk L L (2007), Consumer Behaviour 9th Edition, Pearson Prentice Hall, pp. 187 189. Tang, Christopher S. Bell, David R. Ho, Teck-Hua. (2001), Store Choice and Shopping Behavior: How Price Format Works, California Management Review, Winter, Vol. 43 Issue 2, pp. 56 74.
33 | P a g e
Gravity
Annexure
Descriptive Statistics N VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00008 VAR00009 VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 VAR00015 VAR00016 VAR00017 VAR00018 VAR00019 Valid N (listwise) 183 183 183 182 183 183 183 183 183 183 183 183 183 183 183 183 183 183 183 182 Minimum 1 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maximum 5 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Mean 3.54 3.5519 3.3934 3.5385 3.1530 3.4481 3.3060 3.2186 3.6885 3.3388 3.0765 3.6230 3.5902 3.7760 3.5355 3.7869 3.8142 3.5410 3.0000 Std. Deviation 1.199 1.12234 1.16183 1.22864 1.18534 1.26937 1.21994 1.17963 1.27367 1.28173 1.24240 1.29450 1.22757 1.11881 1.37385 1.14998 1.20822 1.30393 1.30510
Reliability Statistics Cronbach's Alpha .674 N of Items 19
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .688 519.543 171 .000
35 | P a g e
Gravity
Total Variance Explained Extraction Sums of Initial Eigenvalues % of Component Total Variance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 3.231 2.023 1.447 1.311 1.208 1.079 1.028 .894 .841 .820 .753 .750 .663 .576 .559 .544 .478 .427 .367 17.007 10.647 7.617 6.903 6.357 5.678 5.411 4.707 4.427 4.314 3.964 3.947 3.492 3.031 2.940 2.862 2.517 2.249 1.930 Cumulative % Squared Loadings % of Total Variance 17.007 10.647 7.617 6.903 6.357 5.678 5.411 Cumulative % Rotation Sums of Squared Loadings % of Total Variance 11.879 9.805 8.802 8.502 7.975 6.695 5.963 Cumulative % 11.879 21.684 30.486 38.987 46.962 53.657 59.620
17.007 3.231 27.654 2.023 35.271 1.447 42.173 1.311 48.531 1.208 54.209 1.079 59.620 1.028 64.327 68.753 73.068 77.032 80.979 84.471 87.502 90.442 93.303 95.821 98.070 100.000
17.007 2.257 27.654 1.863 35.271 1.672 42.173 1.615 48.531 1.515 54.209 1.272 59.620 1.133
Extraction Method: Principal Component Analysis.
37 | P a g e
Gravity
Component Matrix
Component 1 VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00008 VAR00009 VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 VAR00015 VAR00016 VAR00017 VAR00018 VAR00019 .406 .416 .376 .405 .242 .203 .521 .001 .451 -.099 .026 .600 .707 .414 .578 .503 .368 .477 .148 2 .203 -.163 .138 .202 .556 .545 .475 .624 .047 .433 .188 .068 -.133 -.272 -.054 -.214 -.339 -.430 .068 3 -.098 -.047 -.237 -.441 -.073 -.183 -.114 .360 -.172 .428 .638 .009 .167 -.100 .299 .050 .308 .210 .337 4 .329 .566 .393 .186 -.078 -.364 .021 -.128 .097 .023 .254 -.437 -.162 -.439 .078 -.013 -.103 -.058 .185 5 -.105 -.070 .159 .003 .396 .146 .097 -.297 -.461 -.498 .293 -.051 -.095 .200 .044 -.252 .056 .024 .473 6 .547 -.329 -.069 .274 -.165 -.078 -.172 .169 .041 .048 -.157 -.284 .074 .301 .117 -.442 .238 .003 .168 7 -.003 .133 -.374 -.021 .128 .107 -.110 .012 .344 .053 -.238 -.080 -.138 .035 -.181 .129 -.300 .302 .629
Extraction Method: Principal Component Analysis. a. 7 components extracted.
Chapter Three
Gauging Service Loyalty among Banking Consumers of Indore City An Exploratory Research
Sonam Motwani, StudentPrestige Institute of Management and Research, Indore | Mehek Malhotra, StudentPrestige Institute of Management and Research, Indore | Sandeep Gehi, StudentPrestige Institute of Management and Research, Indore |Nishant Joshi, Assistant
Professor, Prestige Institute of Management and Research, Indore Abstract: Indore is one of the fastest developing cities in India.The development brings in lot of investment and money which calls for good banking services. This can also be seen as an opportunity for banks and bankers to grow there size and operation by increasing loyalty among consumers. There has been a gap between bankers perception and consumer expectations. Historians are divided on the derivation of the word bank. One school of thought believed that the word bank was derived from the word babcus or banque which meant a bench. During the ancient period early bankers and Jews in Lombardy transacted their business on benches (known as banco in local parlance) in the market places. They were accepting deposits and lending money (Shridharan and Mathews). Section 5 (3) (b) of the banking regulations Act, 1949, defines banking as the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. Thus banking has characteristics such as; Intangibility, catalyst, is a link between lender and borrowers and does distribution of risk which basically fall in the preview of service. In words of Berry service are deeds, processes and performance which are intangible but may have a tangible component these are produced and consumed at the same time. The study attempts to explore this gap using the service loyalty scale developed by Clement, Sudhahar, Duraipandian Israel, Britto & Selvam,so that a normative research can be conducted in order to provide benefits to consumer, bankers, researchers and policy makers. The research is exploratory in nature. Primary data is collected from the field using a schedule and appropriate statistical analysis is conducted to test various hypotheses 39 | P a g e
Gravity
Introduction Indian banking has been divided in three eras namely; pre-nationalisation, nationalisation and post liberalisation. The first known systematic banking practice was started in 18th & 19th century by east India Company in Calcutta and Bombay. Over the three eras Indian banking consumers have always felt the need of good quality services. Till the post liberalisation era the services were not playing a major role since the choice of banks were limited with consumers. With liberalisation coming into all sectors and private banks coming into the scene services became a very important factor for customer retention and addition of new customers. Madhya Pradesh is a central Indian state popularly known as the heart of India. Primarily and agrarian state, the economy of states has both the facets of agriculture and industry .still it wont be wrong to state that Madhya Pradesh is a largely agrarian economy. about 197 kilometres from west of Bhopal which happens to be the capital of Madhya Pradesh lies Indore a city which is a perfect blend of high quality agriculture surrounded by two very big industrial areas namely Pithampur and Dewas . Indore is the commercial capital of Madhya Pradesh and one of the fastest developing cities in India .The development brings in lot of investment and money which calls for good banking services. This can also be seen as a opportunity for banks and bankers to grow their size and operations by increasing loyalty among consumers. There has been an observed gap between bankers perception and consumers expectation. To bridge this gap there is a requirement of studying key factors that influence banking services. Indore being the commercial capital of Madhya Pradesh provides laboratory like conditions where a comprehensive research can be conducted to generate a generic model for creating and sustaining service loyalty.
Gauging Service Loyalty among Banking Consumers of Indore City:An Exploratory Research
Review of Literature R.K Uppal (2010) analysed the trends and growth of the retail portfolio of various bank groups between 2007-2008 and found the need of more customer oriented service and suggested that advance technologies could be used to capture remote area customers, skilled manpower, market research in intelligent ways, credit quality techniques, universal banking and human factors delivering banking service to customers. All the above strategies were felt because of gap between perceived services and services provided existence. Bell (2001) the banking industry has shown tremendous growth in volume in complexities during the last few decades. Despite making significant improvement in all areas relating to financial viability, profitability and competitiveness, there are concerns that banks have not been able to include vast segment of the population, specially the under-privileged sections of the society into the fold of basic banking services. Internationally also efforts are being made to study the causes of financial exclusion and designing strategies to ensure financial inclusion of the poor and disadvantaged. The reason may vary from country to country and hence the strategy could also vary but all out efforts are being made as financial inclusion can truly lift the financial condition and standards of life of the poor and disadvantaged. Benvensite, Busaba, and Wilhelm (2001) proposed that proper flow of information shall enable banks to become closer to their consumers which shall the volume and return of these institutions, the same been approved by Barth, James, Gerard Caprio and Ross Levine, 2001.Before 1983, the definition of quality was defined primarily based on the concept of quality control with corresponding standards focused completely on achieving quality. While Juran defined quality as "suitable use", Crosby defined it as "consistent with needs", and assumed the existence of correspondence between quality and operational standards. Later, it was realized that the service industry requires a broader definition of quality than that used by the manufacturing industry. In the concept of Parasuraman, Zeithml, and Berry (1985), 41 | P a g e
Gravity
which was further expanded by Zeithaml (1988), consumers assessment of service quality by employing both interior and exterior attributes of low-level production quality or service quality were emphasized. Such process passes through an internal united comparison, and proceeding to establish a higher level of perceived service quality among the consumers. In the recent years, service researches have revealed a variety of customer-based improvement strategies based on the specific service elements, suggesting action plans for different service requirements that demand managerial action. Results of these studies have facilitated in competitive positioning of those service components which are directly tied to the organization's success. The present study is an endeavor to evolve a truly customer-centric service system based on customers assessment of service quality. From the customers perspective, service quality significantly influences customer satisfaction and customer satisfaction has direct influences on purchase intentions. Research findings indicate that service quality influences purchase intentions more than does customer satisfaction. It is therefore imperative on the part of bankers to stress upon both service quality and customer satisfaction, in order to raise the purchase intentions of customers. The empirical results of the present study may therefore provide improved insights on banking service as it seeks to simultaneously analyze service quality and customer satisfaction. The customer satisfaction paradigm posits that confirmed standards lead to moderate satisfaction; positively disconfirmed (exceeded) standards lead to high satisfaction, and negatively disconfirmed (underachieved) standards lead to dissatisfaction. The subject of continued (and considerable) debate in the marketing literature, the distinction and association between service quality and customer satisfaction remains at the forefront of many academic- and practitioner-oriented research endeavors (Spreng and Mackoy, 1995). Many studies of consumer satisfaction have been conducted in service settings, and, generally, researchers agree that the two constructs
are conceptually distinct (Bitner, 1990). However, based on the findings of the past research (e.g. Oliver, 1989), an attempt has been made in this paper to explore the contention that service quality influences, among other things, levels of customer satisfaction. The study seeks to maintain the position that service quality - as determined by its various components - is a partial determinant of satisfaction (Parsuraman et al., 1985, 1988). There exist numerous empirical works to support the quality/satisfaction causal order. In a study, Cronin and Taylor (1992) tested, among other things, the casual relationship between service quality and customer satisfaction. This study emphasized that marketing researchers are not in agreement in terms of the causal order of these constructs, and suggested that empirical justification is necessary to determine the true nature of this relationship. The findings of this study revealed that perceived service quality leads to satisfaction (as opposed to the reverse). In a study addressing the relationship between service quality and satisfaction, Spreng and Mackoy (1996) suggested that perceived service quality was an antecedent to satisfaction. Although the direction of the quality/satisfaction relationship (i.e. quality leads to satisfaction) is fairly well understood for services, the question of whether or not (and how) this relationship varies depending on particular settings and/or situations is not. Service quality and customer satisfaction do exhibit independence and are indeed different constructs from the customers point of view. A small step in unearthing and understanding the constructs of service quality and customer satisfaction and their implications on competitive fruition has been put forward in a study on banking services (Sureshchandar et al., 2002). In another study (Regasamy and Kumar, 2005), the comparative analysis on the services among three major banking segments revealed that the foreign banks have 43 | P a g e
Gravity
topped the list in terms of delivering qualitative customer service. The study also revealed that the private sector banks compete successfully with foreign banks and make efforts to provide better banking services in tune with the changing global competitive scenario. In an attempt to study the service gap, Dash and Kumar (2007) revealed that customers expectations exceeded their perceptions, with regards to various dimensions of service quality. They further claimed that perception of either positive or negative service quality was related to the customers future behavioral intentions. Therefore, if a positive quality gap exists, the customers would tend to comment positively about the service. On the contrary, a negative quality gap would result in customers complaining, switching to other service providers, commenting negatively about the provider or just decreasing the usage of the service. Hence it is recommended that the banks should continuously monitor the service quality levels so as to avoid erosion of service quality and migration or switching by customers to another bank. Identification of customer segment is also vital for service development and delivery in banks. For example, Jham and Khan (2008) implied that Indian banks should take care of the needs of customers when introducing various services to them. Their study revealed that customers of banks such as ICICI, IDBI, HDFC, PNB and SBI were either in service or self employed. Many customers of SBI and PNB were found to be retired from their respective profession. Thus they recommended that banks should envisage a strategy to serve customers with different occupations & educational backgrounds. Banks must also advance their customer-centric strategies by providing satisfaction through services leading to better relationship building and earning profits for the banks. Sudesh (2007) revealed that poor service quality in public sector banks is mainly because of deficiency in tangibility, lack of responsiveness and empathy. Private sector banks, on the other hand, were found to be more reformed in this
regards. Above all, the foreign banks were relatively close to the expectations of their customers with regard to various dimensions of service quality. Further, the study revealed that there existed service quality variation across demographic variables, and suggested that management of banks should pay attention to potential failure points and should be responsive to customer problems. While studying on development of service quality, Amudha and Banu (2007) revealed the necessity of employee contacts and evaluation of service experiences. Parikh (2006) found the problem of reliability in various measures of service quality, and concluded that perception responses have high reliability as compared to expectation responses. The five factor structure of service quality developed by Dabholkar, Thorpe and Rentz (1996) indeed had a major impact on the business and academic communities. Although this study shows that the data collected do not support their five-factor structure, the five dimensions are still useful as a foundation for discussion and determination of areas for improvement in the service quality of retail stores. Service quality in banking implies consistently anticipating and satisfying the needs and expectations of customers. However, evaluating service quality sometimes is not an easy task due to the intangible nature of services. Hence, the present study seeks to develop a common understanding of service quality in the banking industry across different customer segments of public, private and MNC banks in India. There are many reasons for poor service quality across industries. One reason may be an inability to collect or use collected data. For example, in direct opposition to consumer opinion, bank executives perceive themselves and their companies to be doing an excellent job. This apparent discrepancy of opinion creates questions about banking service information-gathering effectiveness. Because perceived quality is conceptualized as the customer's overall attitude towards the excellence of service, many researchers have relied on a single overall quality question, measured on a scale ranging from poor to excellent (Rust and Oliver, 1994). 45 | P a g e
Gravity
More generally, however, service quality perception is thought to be based on several quality attributes (Gronroos, 1990). Parasuraman et al. (1985, 1988) and Zeithaml et al. (1990) developed a multi-item scale (SERVQUAL) where they have integrated the most important of the criteria contributing to the formation of customer perceptions of service and which signal quality to the customer. These are: reliability - reflecting the technical quality of the outcome of the service encounter, i.e. what is received by the customer; and tangibles, responsiveness, assurance and empathy - reflecting the functional quality of the process itself, i.e. how the service is provided. Quantification is obtained by measuring expectations and perceptions of performance for each one of these dimensions (Cronin and Taylor, 1992; Parasuraman et al., 1988; 1991; Zeithaml et al., 1990). SERVQUAL was deemed "to be applicable to retail and business services and relevant for banking services". Research Methodology The research has been exploratory in nature as predetermined factors and dimensions were not available. For conducting the research we formulated a questionnaire having 3 sections and 15 statements. The questionnaire was based on five point likert scale. We collected responses from 150 respondents based upon judgmental sampling. The data thus collected is primary in nature. The collected data was first tested for reliability using Cronbachs Alpha test and then descriptive statistics were drawn upon favorable results we tested for Kaiser-MeyerOlkin Measure of Sampling Adequacy to check whether explanatory factor analysis could be administrated or not. We then upon satisfactory results conducted factor analysis with rotated varimax method. On the basis of these result a qualitative model was created.
Results On the application of Cronbachs Alpha for testing reliability the results were 0.8 which is good enough to proceed further. Upon the application of descriptive statistics we observe that 88% of banking consumers in Indore feel that banking services provided by their banks are prompt. 75% of respondents felt that employees in their bank were courteous to them. About 80% felt that knowledge towards various banking products and services is available with these banking employees. 76% of the respondents felt that the banking hours are convenient and they are provided attention and help. About 81% of the respondents felt that the bank staff is responsive but only 73% of respondents felt that officials have understanding towards problems and requirements of consumers.77% of respondents felt that the service mix available in their bank is appropriate and dependable. Only 76% of respondents felt that their bank branch is safe. About 75% of respondents were satisfied with their branch location, ATM network and promotional material of the bank. The value for KMO was equal to 0.9(approximately after rounding off) which is high and indicates that factor analysis can be conducted. 15 statements after the application of factor analysis with Vermax Rotated Method produced 4 factors namely; 1) Courtesy extended by bank employees, 2) Knowledge of product and services by bank employees, 3) Banking hours and 4) ATM networks. These broad factors had highest factor loads and were explanatory to the statement of problem.
Conclusion:
The description present here simply betokens the need for development of SERVLOYAL for use in the service marketing research. The robustness of the measurement of items in terms of relationship among latent variables can always stand 47 | P a g e
Gravity
improvement. Therefore, future research is caller for to continuously refine this measurement scale and corroborate the findings of this empirical study. The effect of psychological and genetic predispositions to Service Loyalty has yet to be investigated and the same could also be attempted as a future study. The Dimensionality has been conducted to only take further the study and delimit the existing research material. This also indicates that the Impact of the four dimensions is very high in the universe of the research and banking organizations working in the area can really build and retain more number of customers. The act of maintaining long-term relationship with customers has been proving to be beneficial for the corporate of any rung, be it profitability or loyalty, irrespective of the sectors they belong to. In todays highly competitive environment, organizations should protect the long-term interest of the customers and hence should seek the ways through which the customer loyalty toward the organizations will be forged. References Uppal, R. K., Business Retail Banking Strategies in the Liberalized and Globalized Era (January 6, 2010). The IUP Journal of Business Strategy, Vol. VI, Nos. 3 & 4, pp. 95-106, September & December 2009. Available at SSRN: http://ssrn.com/abstract=1532101 Bell, C and P. Rousseau (2001), Post Independence India: A Case of Finance-led Industrialization?, Journal of Development Economics, 65, 153-175. Benveniste, Busaba, and Wilhelm (2001)Barth, James, Gerard Caprio and Ross Levine, 2001a. Banking systems around the globe: doregulation and ownership affect performance and stability? Forthcoming in Frederic Mishkin, ed., Prudential Regulation and Supervision: Why it is Important and what are the Issues (Cambridge, Mass., National Bureau of Economic Research).
Annexure
Case Processing Summary N Cases Valid Excluded Total
a
% 136 0 136 100.0 .0 100.0
a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha .780 N of Items 15
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .855 633.944 105 .000
49 | P a g e
Gravity
Total Variance Explained Extraction Sums of Initial Eigenvalues % of Component Total Variance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 5.297 1.309 1.134 1.030 .953 .818 .766 .661 .555 .508 .505 .487 .394 .308 .274 35.316 8.727 7.562 6.864 6.351 5.452 5.109 4.405 3.702 3.388 3.369 3.246 2.626 2.056 1.828 Cumulative % Squared Loadings % of Total Variance 35.316 8.727 7.562 6.864 Cumulative % Rotation Sums of Squared Loadings % of Total Variance 22.607 17.537 10.776 7.549 Cumulative % 22.607 40.144 50.920 58.469
35.316 5.297 44.043 1.309 51.605 1.134 58.469 1.030 64.819 70.271 75.380 79.785 83.487 86.875 90.244 93.491 96.116 98.172 100.000
35.316 3.391 44.043 2.631 51.605 1.616 58.469 1.132
Extraction Method: Principal Component Analysis.
51 | P a g e
Gravity
Component Matrix
Component 1 VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00008 VAR00009 VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 VAR00015 .643 .722 .601 .144 .643 .677 .676 .615 .537 .610 .567 .700 .508 .674 .298 2 -.372 -.222 -.495 -.050 -.264 .207 -.292 .297 .084 .313 -.127 .075 .464 .249 .429 3 .100 -.257 -.005 .861 .144 -.331 .029 .033 -.217 .316 .083 -.096 .010 -.018 .144 4 .121 .173 -.132 .147 .164 .065 -.056 .055 .434 -.251 -.189 -.012 -.181 -.499 .583
Extraction Method: Principal Component Analysis. a. 4 components extracted.
Chapter Four
A Descriptive Analysis of Indian Agriculture Exports
Anubhi Khanna, StudentPrestige Institute of Management and Research, Indore |Ruchi Jain, StudentPrestige Institute of Management and Research, Indore | Priya Shrivastava, StudentPrestige Institute of Management and Research, Indore | Vinod Kumar Mishra, Assistant Professor Prestige Institute of Management and Research, Indore
Abstract:
The Indian agriculture export had been the leading product in the Indian export basket and the position from late 1970s has been slipping causing frustration in the sector. Government even though has been making proactive steps the control has yet to be established. Many researches have been conducted on Individual products but no comprehensive and concrete research and comprehensive research has been conducted to monitor the course of action. The current study attempts to study the trend of the Indian agriculture using serious statistical tools by using data collected by reputed agencies over the years.
INTRODUCTION
Till the end of the 19th century, India and China occupied prime positions in the worlds economies. After the industrial revolution in United Kingdom and invention of steam engine and power looms, the economic situation of these two economies has undergone gradual changes in the terms of their contribution to the global economy. While these two countries accounted for more than 80% of the worlds GDP at the beginning of the 20th century, their trade share has come down to nearly 40% over a period of time. Even now, while Indias trade share is hardly 0.7%.At the beginning of the 20th century Indias exports were primarily cotton and spices. The trade was 53 | P a g e
Gravity
moving towards British colonies. However, in the post independence era, nearly 50% of the GDP originated from the agricultural sector, which has now drastically come down to 20%.Initially, the governmental policies centered around supply and demand. The supply side took care of the land reforms, land reforms, land use, creation of infrastructure facilities, use of technology in the farming activities, and encouraging massive investment in irrigation and agricultural price supports on certain crops like paddy, wheat & sugarcane. On the demand side, the government was fully active in the management of distribution channel and creation of Food Corporation of India to meet public distribution requirement. After the Green Revolution in the mid- 60s several high yielding varieties of wheat and rice were introduced. More funds were allocated for agricultural research, launching major and minor irrigation facilities, financing support from the nationalized banks on the priority sector basis to meet the short- term and long- term needs of the farming community and setting up of agricultural market committees to ensure fair prices for the producers. As a result, the rate of the growth of productivity per hectare of all crops increased from 2.07% in 1986 to 2.51% in 1994-95.Investment in irrigation and rural development has been declining since the early 1990s. Rural development expenditure inclusive of rural infrastructure and irrigation decreased from 14.5% of GDP on 2.59% in 2001. Capital formation in agriculture has also increased from 1.6% to 1.3% of GDP in the three years ending 200102. Since agriculture forms nearly 20% of the countrys GDP, its capital formation should be at least 25% of the Gross Capital formation. Gross capital formation in agriculture has remained between 7% and 2.2% of the GDP, which in absolute terms was around Rs43, 125 crore. Of these over 70% is the private sector investment by the farmers investing in their field on the bore wells and other inputs, while public investment for the irrigation project came from the government and the government and other agencies. Employment growth rate in the rural India has fallen from an average of 2.03% to just 0.58% in the seven years ending 1999-2000. The average farm size is getting smaller each year; the cost return of agricultural activity is adverse to
the farmers resulting in increased debt. Salient feature of national policy for the farmers to be finalized by mid- 2007 calls for sweeping changes in mindset which will favor greatly landless agricultural labourers, share croppers small and marginal farmers, farmers with large holding, fisheries, dairy and poultry project owners, plantation workers, etc. the draft policy took note of the fact that while 65% of the countrys population depends on the farming activity, farm population is growing by 1.84% per annum, while the farm size is getting reduced. The erratic monsoon rainfall and agricultural pricing policy also had impact on the crop sowing trend. The planting of the rain- fed crops of coarse cereals, pulses, oilseed, for which prices have remained unchanged has tended to slow down during the current season in 2006 with a comparison to the previous year is graphically shown here, which reveals the distortion in the pattern.
FARMING
COMMISSIONING
Packed Products
CONTRACT FARMING
SEMI PROCESSED FOOD/ Ready to Cook
READY TO EAT
Source: Conceptualized by the authors
55 | P a g e
Gravity
Farming is the first step of the value chain in agriculture sector. It includes ploughing the field, sowing the seeds in the soil, nourishing the seeds with fertilizers, manures and applying pesticides and going for irrigation. The crops produced are then taken to the mandi (i.e. local whole sale market formed by the association of farmers) and are sold. In the process of selling the crop from the fields to the mandi arbitrage is incurred. These brokers charge commission for their job. Recently some industries have contracted farmer to grow a specific crop or crops which eventually shall be purchased by these companies on a predetermined rate. Currently in India some big retailers in purchase the food products(Raw) in bulk from the mandis and sell them in well sorted and packeted form to the consumers at competitive pricing by virtue of purchasing in bulk. The food products are even preserved and refrigerated. The Indian retailers are largely heding towards highest profit margin. The semi processed/ready to cook segment is now largely being targeted by most Indian food processors. Currently such industries are scarce in India in comparison to the population. These semi processed food are available across all the segments of retail stores. Even though there has been no major inroads created by Indian food processing industry into the ready to eat segment still it is very well known that this segment has the highest margin of profit sometimes ranging upto 400%. But it is the matter of interest that many eating joints and hotels/restaurants are opening across India. The problem that exists is the absence of major industrial leaders into this segment.
Review of Literature:
Syeeda Khatoon (2005) Indian agricultural has been hit hard during post WTO period (1995 - 2003). The share of agro goods in India's global export has declined during this period. During post WTO period, agricultural subsidies of developed countries have been rather increased. Therefore it is very difficult for India to face global agricultural competitiveness. In this scenario, the global agricultural trade would likely to become oligopolistic. The returns of various crops have declined due to
increase in cost of production, slow growth of agricultural productivity, weak marketing mechanism, increase in input intensity and fall of water table. As a result farmers have become highly indebted and are resorting to suicides. In the near future also the total quantum of exports particularly agriculture and light manufacturing goods can not be raised significantly in the global market in the near future because of limited and uncertain domestic export surplus and particularly their inelastic demand at world market. In other words, Indian exports were considered to be supply constrained and also were not responsive to relative price changes at the global level. Raising the level of productivity and quality standards to internationally competitive levels is one of the major challenges following the dismantling of quantitative restrictions on imports, as per the WTO Agreement on Agriculture. Siddhartha Mitra (2007) Given the slow growth of Indian agriculture in the recent past, this paper contends that increased provision for agricultural infrastructure is an essential prerequisite not only for inclusive growth but also for sustained growth of the Indian economy. Agricultural growth is essential as the associated reduction in the propensity to import food will imply that more earned incomes are ploughed back into the economy and subjected to the multiplier. Second, agricultural growth will have a positive effect on the current account deficit, a high level of which might lead to the nation incurring growth impeding debt. Third, such agricultural growth, which is powered by agricultural infrastructure investments financed by the export boom, will stimulate domestic demand for export oriented sectors. Thus, it will help the national economy to prepare for a future in which exports assume diminished importance as a driver of growth and complementarities between various sectors in the economy become much more important for growth. The paper submits that mere budgeting for agricultural infrastructure and associated essential public services is not enough. Government servants who get only a tiny proportion of total benefits from such services if they use the budget to provide these, often find embezzlement of funds to be 57 | P a g e
Gravity
a more lucrative or utility enhancing option. It is therefore necessary to link successful provision of the public service to security of tenure and viability of the provider. Contracts for government workers or outsourcing to the private sector might be the answer. Zhu and Dellenbarger (2006) The US is cutting back on agricultural subsidies and signing various free trade agreements, which will reduce the size and scope of agriculture in the United States. As the US population grows there will be a need for an increase in agricultural food products and that will originate from imports as quotas are changed. The US keeps changing the quota on sugar and more sugar is now being imported than before. With the Free Trade Agreement with Central America even more sugar should come into the United States since sugar cane production in many areas of the US is not cost effective and the farmers are going bankrupt. The European Union will also need to increase their food imports as they expand into other countries and their population grows. Asia could become the next Bread Basket of the world. Kumbhar (2007) Agriculture is the main occupation of the Indian peoples. Performance of Indian economy is dependent upon the growth of Agriculture sector. It contributes nearly 16% of Indias Gross Domestic Product (GDP) & 13% of total exports. It provides employment to 52% of the countrys work force and livelihood security to more than 620 million people. Agriculture plays an important role in economic development, such as provision of food to the nation, enlarging exports, transfer of manpower to non-agricultural sectors, contribution to capital formation, and securing markets for industrialisation. Agriculture forms the backbone of Indian economy and even though large industrialisation in last 60 years, agriculture still occupies a place of pleasure.
Ahmed and Rustagi(2004) Liberalization of Indian economy has opened immense opportunities for export of agricultural products. GCC countries are heavily dependent on import of agricultural commodities to fulfill the needs of their rapidly growing population. Due to geographical proximity to GCC countries and natural comparative advantages to Indian farmers there is a large scope for exports of agricultural commodities to GCC. Recognizing this, the paper makes an attempt to analyze India's agro exports to GCC covering traditional and non -traditional agro exports. The absolute value of exports of the Indian agricultural and food products has increased significantly since the initiation of trade liberalization. However, the relative share of India's agro and food products to GCC countries has declined during 19912001. This share was 30% in .2000-01 in India's agro export, which constitutes a major part in India's agro export indicating the importance of GCC in Indian exports. The compound growth rate of export of other processed food was the highest as compared to the export of other commodities to GCC. It can be concluded that Indian farmers are relatively better placed to exploit the emerging opportunities if proper policy support is provided to them. Thus, there exists plenty of scope for Indian agricultural exports in the new economic environment. Chowdhury and Kumar (2008) The SPS Agreement in the WTO gives legal validity to the CODEX standards. Since the developed countries have been at the forefront of setting the food standards in the CODEX, the developing countries have been increasingly engaged in the CODEX, and also in the WTO, with an objective to increase their exports of the agricultural and food products. But such objective and desire have often been stymied by the lack of institutions which can sustain the intense technical negotiations at the CODEX. If these participations are not qualitatively satisfactory, the very objective of such participations is not fulfilled. But since most of the developing countries are lacking in such high technical capacity, they are unable to influence or qualitatively shape the negotiations in the CODEX. This also 59 | P a g e
Gravity
impacts their exports of agricultural and food products. India has been an active member of the WTO. But whether it has been able to influence or respond to the play of events internationally and concomitantly balance it with the domestic imperatives that are embedded in the international legal and technological regimes, institutional capacity constraints and other social issues. This paper examines such issues, and also examines some bilateral trade agreements which demonstrate the mounting pressure on the developing countries to conform to the food standards of the developed countries. Mitra and Ghosh (2008) Agricultural exports from developing countries are facing stringent barriers in the form of sanitary and phytosanitary measures as well as technical barriers: the need of the hour, therefore, is to develop robust Agricultural Exporting Zones (AEZs) to promote organic cultivation of exportable produce. The analysis of the future growth potential of AEZs in India is based on two planks: a theoretical cost benefit analysis and a case study approach. The theoretical cost benefit analysis highlights the trade-off between factors that enhance profitability on the one hand and others that lead to a reduction in profitability. The case study approach complements this theoretical analysis by looking at the ground reality of AEZs in the Indian state of West Bengal. The case study shows that practical considerations such as the lack of marketing alternatives; the monopoly enjoyed by agricultural exporters; lack of market information and institutionalised communication channels between exporters and farmers; the scarcity of suitable variable inputs such as organic manure as well as the absence of storage infrastructure adversely impact the bargaining power of farmers in negotiating prices for their produce. The study therefore implies that the theoretically plausible trade-off often does not exist in reality.
From the point of view of profitability, cultivation of organic crops is often clearly unattractive compared to non-organic cultivation, given the institutional ground reality prevalent in India. This important conclusion in turn leads to the policy recommendation that for a take-off in agricultural exports, which are becoming increasingly organic in composition, the following have to be effected - improvement in marketing information channels (computerised information, radio and television bulletins etc.), development of storage infrastructure (cold storages, warehouses etc.) and greater and cheaper availability of inputs needed for organic agriculture.
OBJECTIVE:
1. To study the trend of Indian agriculture sector. 2. To understand the trend 3. To understand the Impact.
HYPOTHESIS:The major hypothesis of the research is: 1. The performance of Indian agriculture export is not significant compared to the total world trade of agricultural products.
RESEARCH METHODOLOGY:The universe of research shall be Indian agricultural exports compared to the overall world exports. The proposed period of study is since 2004 to 20010 spanning 07 years. The study is descriptive in nature and is based upon secondary data. The data is collected from various published sources like books, journals, CMIE journals, Indias stats, etc. descriptive statistics along with trend and regression has been used for forecasting. The trend has been calculated using ARIMA modelling and simple linear 61 | P a g e
Gravity
regression using step wise method has been applied, post calculating the probabilistic significance and the Durban- Watson test for values.
Results:
Upon the application o f time series analysis using ARIMA we do not get a very health forecasting of the Indian agricultural exports for the past two years they have been consistently dropping, the possible cause could be the overall situation of food shortage in the world in general and also India in particular. The country for the past few years has seen unseasonal rains causing crop damage. Upon the Inspection of the Import data we find that India has imported large amount of raw agricultural products from various countries. The Graph generated as a result of ARIMA time series analysis show a very steep downward curve. Which is a sign of trouble? Upon testing for Karl Pearsons coefficient of correlation the values come out to be
r = 0.712 which shows high degree of positive correlation and a together moving trend. This also indicates that regression can be applied. Upon the application of Durbin Watson test:
Here T is the number of observations. Since d is approximately equal to 2(1-r), where r is the sample autocorrelation of the residuals, d = 2 indicates no autocorrelation. The value of d always lies between 0 and 4. If the DurbinWatson statistic is substantially less than 2, there is evidence of positive serial correlation. As a rough rule of thumb, if DurbinWatson is less than 1.0, there may be cause for alarm. Small values of d indicate successive error terms are, on average, close in value to one another, or positively correlated. If d > 2 successive error terms are, on average, much different in
value to one another, i.e., negatively correlated. In regressions, this can imply an underestimation of the level of statistical significance. On the basis of the above test and the forecasting results generated above we can apply regression.
The model thus generated is: World Agricultural Exports = -236643.549+ (1966.611*Indian Agricultural Exports)
Conclusions:
The Indian agricultural exports are dropping at a very high pace which could produce very serious repercussions as this also indicates growing dependencies on Imports. The results also show that the farm sector not performing shall cause 65% of Indian population tough times ahead and shall impact markets of tier 3 and beyond heavily. The model generated above show high degree of Impact. It clearly indicates that the Markets even though showing high demand India is not ready to take on the demand. It alarms us on the under preparedness of ours for the coming challenges. Further it is evident that India has become stagnant in the value chain and moving ahead again will require the farm sector exports to perform.
Reference
Ahmed, Shahid and Rustagi, Puja, India's Export of Agro and Food Products to Gulf Co-operation Council (GCC): A Study for the Period of 1991-2001 (2004). Indian Journal of Social and Economic Policy, Vol. 1. No. 1., pp. 127-135, June 2004. Available at SSRN: http://ssrn.com/abstract=1701565 Chowdhury, Nupur and Kumar, Sanjay, Technical Capacity, Policymaking and Food Standards: An Overview of Indian Experience (November 10, 2008). Asian Biotechnology and Development Review, Vol. 11, No. 1, pp. 21-41, 2008. Available at SSRN: http://ssrn.com/abstract=1299343
63 | P a g e
Gravity
Khatoon, Syeeda,(2005), Impact of Economic Liberalization in Rural India. Available at SSRN: http://ssrn.com/abstract=670542 Kumbhar, Vijay Maruti (2011), Performance of Agriculture Sector in India: Special Reference to Post Reform Period. Available at SSRN: http://ssrn.com/abstract=1748246 Mitra, Siddhartha and Ghosh, Keya, Do India's AEZs Need a Fresh Start? (March 15, 2008). Available at SSRN: http://ssrn.com/abstract=1139068 Mitra, Siddhartha, (2007), Inclusive Growth in India: Budgeting and Monitoring. Available at SSRN: http://ssrn.com/abstract=987762 Zhu, Lihong and Dellenbarger, Lynn E., (2006), Possible Implications of China Signing Various Agricultural Trade Agreements. Available at SSRN: http://ssrn.com/abstract=892388
Annexure:
Time Series Modeler

Model Description
Model Type
Model ID
VAR00001
Model_1
ARIMA(0,0,0)
Model Fit
Fit Statistic
Mean
SE
Minimum
Maximum
Stationary R-squared R-squared RMSE MAPE MaxAPE MAE MaxAE Normalized BIC
-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078
. . . . . . . .
-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078
-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078
65 | P a g e
Gravity
Model Fit
Percentile
Fit Statistic
90
95
Stationary R-squared R-squared RMSE MAPE MaxAPE MAE MaxAE Normalized BIC
-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078
-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078
Model Statistics
Model Fit statistics Model
Number of Predictors
Stationary Rsquared
R-squared
RMSE
VAR00001-Model_1
-4.180E-14
-4.180E-14
29.658
Model Statistics
Ljung-Box Q(18)
Number of Model Statistics DF Sig. Outliers
VAR00001-Model_1
67 | P a g e
Gravity
Regression
REGRESSION /MISSING LISTWISE /STATISTICS COEFF OUTS R ANOVA /CRITERIA=PIN (.05) POUT (.10) /NOORIGIN /DEPENDENT World /METHOD=ENTER India /RESIDUALS DURBIN.
Variables Entered/Removed
Variables Model Entered

a
Variables Removed Method
India
. Enter
a. All requested variables entered. b. Dependent Variable: World Model Summary

b
Model
R Square
Adjusted R Square
Std. Error of the Estimate
Durbin-Watson
.712
.506
.383
64379.66398
1.649
a. Predictors: (Constant), India
69 | P a g e
Gravity
Variables Entered/Removed
Variables Model Entered

a
Variables Removed Method
India
. Enter
a. All requested variables entered. b. Dependent Variable: World
ANOVA
Model
Sum of Squares
df
Mean Square
Sig.
a
Regression
1.701E10
1.701E10
4.104
.113
Residual
1.658E10
4.145E9
Total
3.359E10
a. Predictors: (Constant), India b. Dependent Variable: World

a
Coefficients
Unstandardized Coefficients Model B Std. Error
Standardized Coefficients
Beta
Sig.
(Constant) 1 India
-236643.549
312863.296
-.756
.492
1966.611
970.779
.712
2.026
.113
a. Dependent Variable: World
Residuals Statistics
Minimum
Maximum
Mean
Std. Deviation
Predicted Value Residual Std. Predicted Value Std. Residual
322284.6875 -56818.99219
477126.4688 1.08322E5
394916.4000 .00000
58325.91619 57582.92201
6 6
-1.245
1.409
.000
1.000
-.883
1.683
.000
.894
a. Dependent Variable: World
71 | P a g e
Chapter Five
Organised V/s Unorganised Retail Market A Comparative Study
Sharda Haryani Assistant Professor, Prestige Institute of Management and Research, Indore| Bharti Motwani, Assistant Professor, Prestige Institute of Management and Research, Indore| Nitesh Daga StudentPrestige Institute of Management and Research, Indore | Ravi Jain StudentPrestige Institute of Management and Research, Indore | Satyam Sharma, StudentPrestige
Institute of Management and Research, Indore
ABSTRACT
An important aspect of Indias current economic scenario is the emergence of organised retail market. There has been a considerable growth in this business in recent years and is poised to grow much faster in near future. Traditionally, the Indian retail industry was largely unorganised mainly comprising of kirana stores, small grocery shops etc. The growth in the Indian organized retail market is mainly due to the changing lifestyle, high disposable income coupled with great affordability and surge in advertising of the consumer behaviour pattern. This study is an attempt to explore the way organised retail has dramatically changed not only the Indian traditional retailing structure but, also the customers consumption behaviour. This study compares the relationship between gender, organised retail store and an unorganised retail store. It will also contribute in understanding that consumers and retailers have different perceptions in relation to store image and shopping habits which truly justifies the need for the consumer marketing research. This study will help the retailers to implement the results in a real marketing orientation. A survey of 250 consumers was done by administering a specifically designed questionnaire.
Page | 72
Gravity
INTRODUCTION
Retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from 35,000 crores in 2004-05 to 109,000 crores by the year 2010. India is the only one country having the highest shop density in the world, with 11 outlets per 1000 people (12 million retail shops for about 209 million households). Rather we can see the democratic scenario in Indian Retail (because of low level of centralization, low capital input and due to a good number of self organized retail). Retail Format in India: Hyper marts/supermarkets: large self-servicing outlets offering products from a variety of categories. Mom-and-pop stores: They are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch. Departmental stores: These are general retail merchandisers offering quality products and services. Convenience stores: They are located in residential areas with slightly higher prices goods due to the convenience offered. Shopping malls: These are the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment 73 | P a g e
Organised V/s Unorganised Retail Market: A Comparative Study and food under a single roof. E-trailers: These are retailers providing online buying and selling of products and services. Discount stores: These are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine. Category killers: These small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's. Specialty stores: They are retail chains dealing in specific categories and provide deep assortment. Shoppers Stop Crossword Book Store and RPG's Music World are couple of examples. The retail industry is divided into organised and unorganised sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. In India, a shopkeeper of such kind of shops is usually known as a dukandar.
Gravity
Organised versus unorganised

In a sharp contrast to the retail sector in developed economies, retailing in India though large in terms of size - is highly fragmented and unorganised. With close to 12 million retail outlets the country has one of the highest retail densities worldwide. Retailers include street vendors, supermarkets, department stores, restaurants, hotels and even two-wheeler and car showrooms. Counter stores, kiosks, street markets and vendors, where the ownership and management rest with one person are classified as traditional or unorganised retail outlets. These formats typically require employees with low skills and account for around two-thirds of the sector's output. These are highly competitive outlets, with minimal rental costs (unregistered kiosks or traditional property), cheap labour (work is shared by family members) and negligible overheads and taxes. However, unorganised retailers suffer due to poor shopping experience and inability to offer a wide range of products and value-addition due to lack of sourcing capabilities. The modern Indian consumer is seeking more value in terms of improved availability and quality, pleasant shopping environment, financing options, trial rooms for clothing products, return and exchange policies and competitive prices. This has created a rapidly growing opportunity for organised, modern retail formats to emerge in recent years and grow at a fast pace. Inefficiency in the existing supply chains presents further opportunity for organised players to draw on this large market even as lack of consumer culture and low purchasing power restricted the development of modern formats. Migration from unorganised to organised retail has been visible with economic development in most countries.
75 | P a g e
Organised V/s Unorganised Retail Market: A Comparative Study
LITERATURE REVIEW
Mathew Joseph and Manisha Gupta (September 2008) states that the Indian retail sector is booming and modernizing rapidly in line with Indias economic growth. In this review the author talked about the impact of organized retailing on traditional retailing. With the increase in number of various formats for shopping like malls, departmental stores, hypermarkets etc the Indian consumers preferences are changing. There is a huge untapped market is present in India right now which contains a number of opportunities for retailer. Sharma, S.R., Tiwari, Prakash & Verma, Hemraj (2008) did an Empirical Study on Customer Perceptions about Vishal Mega Mart and its Impact on Shopping Behavior in Dehradun City (2008). They proposed that a big parking lot, a centralized AirConditioned (AC) environment covering spacious floors, soothing music, a tempting visual display of products with self selection facility and a variety of products priced with occasional heavy discounts are some of the features which affect the choice of selection of store. A study by Ergin Akagan Elif (2007) compare the influence of quality, price sensitivity and brand knowledge factors on brand loyalty for national versus stores brands. The results reveal that the consumers brand loyalty for national brands are quiet strong as compared to store brands. Sinha and Banerjee (2004) the investigation of the shopping orientation by the researchers indicates that the Indian shoppers seek more of hedonic pleasure than the functional value of shopping (Sinha and Banerjee, 2004). Many consider shopping as a task and want to finish as soon as possible where as others derive entertainment value
Gravity
out of their shopping. Radhakrishnan (2003): Traditional Retailers Perceptions about Organized Retail: The study reveals that organized retail has deeply changed the Indian commercial structure. However, it is not exclusively responsible, as other changes (economical, social and cultural ones) have occurred simultaneously. Concerning the more direct effects of organized retail on different types of commerce, it is possible to verify that the major impact is felt on traditional retail and, in particular, on the food sector. It is reported that there is significant difference in organized retail on other types of retail, namely toys, stationery goods and household appliance Ergeneli & Ankan (2002) studied the effect of some demographic factors like age and income etc on ethical behaviour and revealed that there was no significant difference in ethical perceptions based on gender. However, female salespeople had more ethical score than their male counterparts at two age groups viz. less than 20 years of age and age group of 40-49 years. Similarly, regarding the effect of income, the results indicated that the only significance between male and female salespeople was the income level of 200-300 millions at which female salespeople had higher ethical scores than male salespeople Chandrasekhar (2001) several investigations emphasize the possible coexistence of different store formats and others point out the relationship between the type of store and the type of products. These studies show that, while specialized and traditional stores are preferred for fresh products, hypermarkets are preferred for shopping in general, and also for frozen food, groceries and beverages. The purchase of perishables in hypermarkets is reduced. Leszczyc and Timmermans (2001) found that consumers generally preferred to shop at specialty stores and were found to select a store for its neatness, low prices, low parking costs and wider assortments. 77 | P a g e
Organised V/s Unorganised Retail Market: A Comparative Study A study by Forsythe and Bailey (1996) found that customers characteristics such as age, gender, marital status, occupational status and customer shopping enjoyment determine the amount of time spent by a customer for shopping. The more customers ensure shopping enjoyment, the more time is spent on shopping. A negative association was found between age and time spent on shopping for females. Further income was not identified as significant variable, consumers with professional careers spent less time shopping than non professional consumers.
SCOPE AND DESIGN OF THE STUDY

The study is exploratory in nature and focuses basically on primary data about impact of organized and unorganized retail on male and female customers of Indore region of MP (India). The study is based on survey method. The sample size consisted of 250 respondents. The respondents were selected through non probability convenience sampling method. The respondents were given self structured questionnaire with five point likert scale. The Questionnaire adopted in this study consists of 30 statements. Five point likert scales was drawn on left hand side and right hand side of each statement to record the responses for both the sectors separately. The respondents were asked to give response for both the sectors. post hoc test were used to analyze the data. Statistical package for social sciences (SPSS 18.0) and MSExcel 2007 were used for analysis .One way ANOVA and
OBJECTIVES
The main objective of the study is to compare the perception of male and female on organized and unorganized retail store.
Gravity
RELIABILITY OF THE MEASURES

Reliability of the measures was assessed with the use of Cronbachs Alpha. Cronbachs Alpha allows us to measure the reliability of different variables. As a general rule a coefficient greater than or equal to 0.7 is considered acceptable and is a good indicator of reliability. The Cronbachs Alpha for the questionnaire is 0.9078.Hence it is reliable and can be used for analysis.
HYPOTHESES
H01: There is no significant difference between perception of male and female for organised and unorganised retail sector H02: There is no significant difference between the perception of male for organized sector and female for organized sector. H03: There is no significant difference between the perception of male for organized sector and male for unorganized sector. H04: There is no significant difference between the perception of male for organized sector and female for unorganized sector. H05: There is no significant difference between the perception of female for organized sector and male for organized sector. H06: There is no significant difference between the perception of female for organized sector and male for unorganized sector. H07: There is no significant difference between the perception of female for 79 | P a g e
Organised V/s Unorganised Retail Market: A Comparative Study organized sector and female for unorganized sector. H08: There is no significant difference between the perception of male for unorganized sector and male for organized sector. H09: There is no significant difference between the perception of male for unorganized sector and female for organized sector. H010: There is no significant difference between the perception of male for unorganized sector and female for unorganized sector. H011: There is no significant difference between the perception of female for unorganized sector and male for organized sector. H012: There is no significant difference between the perception of female for unorganized sector and female for organized sector. H013: There is no significant difference between the perception of female for unorganized sector male for unorganized sector.
RESULTS AND DISCUSSION

Result of Annova in table 1 depicts that p value is .000 therefore the null hypothesis H01 is rejected at 5% level of significance i.e. there is significant difference between perception of male and female for organised and unorganised retail sector In order to find significant difference between perception of male and female on organised and unorganised retail sector multiple comparison are done using Tukey test.
Gravity
Results of Tukey test In table 2 depicts p value between the groups is 0.982 therefore the null hypothesis H02 is accepted at 5% level of significance i.e. there is no difference between the perception of male for organized sector and female for organized sector. The p value between other group is 0.000 therefore the null hypothesis H03 is rejected at 5% level of significance i.e. there is no significant difference between the perception of male for organized sector and male for unorganized sector. The p value between male for organized sector and female for unorganized sector is 0.000 therefore the null hypothesis H04 is rejected at 5% level of significance i.e. There is significant difference between the perception of male for organized sector and female for unorganized sector. In table 2 the p value between female for organized sector and male for unorganized sector is0.982 therefore the null hypothesis H05 is accepted at 5% level of significant i.e. there is no significant difference between the perception of female for organized sector and male for organized sector. The p value between other group is 0.000, therefore the null hypothesis H06 is rejected at 5% level of significance i.e. there is significant difference between the perception of female for organized sector and male for unorganized sector. The p value between another group is 0.000 therefore the null hypothesis H07 is rejected at 5% level of significance i.e. there is significant difference between the perception of female for organized sector and female for unorganized sector. In table 2 the p value between male for unorganized sector and female for organized sector is 0.000 therefore the null hypothesis H08 is rejected at 5% level of significant i.e. there is significant difference between the perception of male for unorganized sector and male for organized sector. The p value between other group is 0.000 therefore the null hypothesis H09 is rejected at 5% level of significant i.e. there is significant difference between the perception of male for unorganized sector and female for organized sector. The p value between male for unorganized sector and 81 | P a g e
Organised V/s Unorganised Retail Market: A Comparative Study female for unorganized sector is 0.871 therefore the null hypothesis H010 is accepted at 5% level of significant i.e. there is no significant difference between the perception of male for unorganized sector and female for unorganized sector. In table 2 the p value for other group is 0.000 therefore the null hypothesis H011 is rejected at 5% level of significant i.e. there is significant difference between the perception of female for unorganized sector and male for organized sector. The p value between female for unorganized sector and female for organized sector is 0.000 therefore the null hypothesis H012 is rejected at 5% level of significant i.e. there is significant difference between the perceptions of female for unorganized sector and female for organized sector. The p value between other group is 0.871 therefore the null hypothesis H013 is accepted at 5% level of significant i.e. there is no significant difference between the perception of female for unorganized sector and male for unorganized sector. Findings reveal that in most of the cases there is significant difference in the perception of male and female for organized and unorganized stores. The study reported that there are no differences in the perception of male and female when either organized or unorganized sector is compared .But there is significant difference if both the sectors are compared together. Gender wise significant difference is found between the customers perception about organized and unorganized retail stores on various attributes. The organized retail stores is the preferred kind of store by consumers,even though the consumers buy in several establishments and not exclusively in the organized retail outlet, which indicates that there is no "single loyalty".
CONCLUSION AND LIMITATIONS

Globalization and liberalization have opened new vistas in the retail outlet. It is estimated that organized stores are going to give a tough competition to unorganized
Gravity
stores Findings also confirm the perception that the new wave towards shopping in organized retail sector has emerged among consumers .This research is limited to the demographic profile as gender and is restricted to the people of Indore city. Similar kind of research with extended version can be conducted on large sample with different demographic profiles . This study can be extended to people of different cities for exploring the different perceptions of organised and unorganised retail stores for the clearer picture.
REFERENCES
Elif Ergin Akagan (2007),analysis of consumers brand loyalty on national versus store brands, EABR (business) and ETLC (teaching) conference proceedings.. Ergeneli, Azize and Semra Ankan (2000), Gender Difference in Ethical Perceptions of Salespeople: An Empirical Examination in Turkey, Journal of Business Ethics, Vol. 40, 247-260. Forsythe, S.M., Bailey, A.W. (1996). Shopping enjoyment perceived time poverty, and time spent shopping Clothing and textiles research journal, volume 14 No.1 pp. 185-91. Joseph, M., Gupta, M., Soundararajan, N., Sahu, S. (2008), Impact of Organized Retailing on the Unorganized Sector
http://www.eSocialSciences.com/data/articles/Document12392008160.7534143. Leszczyc, P.T.L.P., Timmermans, H. (2001) Experimental choice analysis of shopping strategies, Journal of retailing, volume 77 no.4 pp. 493-509. Radhakrishnan, K. (2003). Organised retail: Forging ahead, Praxis, 4 (1) 47-51.
83 | P a g e
Organised V/s Unorganised Retail Market: A Comparative Study
Sharma, S.R., Tiwari, Prakash & Verma, Hemraj(2008).An Empirical Study on Customer Perceptions about Vishal Mega Mart and its Impact on Shopping Behavior in Dehradun City. SSRN eLibrary. Sinha Piyush Kumar, Banerjee Arindam (2004), Shopping Orientation in the evolving Indian Market, International Journal of Retail and Distribution Management, Vol 32, No. 10, pp 482-493, Emerald Group Publishing Company.
Annexure:
RESULT ANOVA
Sum of Squares Between 126231 Groups Within Groups Total 56667 3 484
df
Mean Square
Sig.
42077.1 359.386 0
117.081
182898
487
Gravity
Multiple Comparisons ;Dependent Variable: TOTAL; Turkey HSD

Mean Difference (I-J) (I) GENDER (J) GENDER Female Organised Male Unorganised Female Unorganised Female Organised Male Organised Male Unorganised Female Unorganised Male Unorganised Male Organised Female Organised Female Unorganised Male Organised Female Organised Male Unorganised Std. Error Sig. 95% Confidence Interval Lower Bound -0.52 32.41 1.388 1.347 0.98 0 -4.09 28.94 Upper Bound 3.06 35.9
Male Organised
31.35
1.388
27.78
34.9
0.52
1.388
0.98
-3.06
4.09
32.93 31.87 -32.41 -32.93 -1.06 -31.35 -31.87 1.06
1.388 1.427 1.347 1.388 1.388 1.388 1.427 1.388
0 0 0 0 0.87 0 0 0.87
29.35 28.19 -35.88 -36.51 -4.64 -34.93 -35.55 -2.52
36.5 35.6 -28.9 -29.4 2.52 -27.8 -28.2 4.64
Female Unorganized
* The mean difference is significant at the .05 level.
85 | P a g e
Chapter Six
Preferences and barriers of usage of ICT tools in the modern education system: A students perception
Sharda Haryani Assistant Professor, Prestige Institute of Management and Research, Indore| Bharti Motwani, Assistant Professor, Prestige Institute of Management and Research, Indore| Jaspreet Kaur Sawhney StudentPrestige Institute of Management and Research, Indore | Deepika Maheshwari StudentPrestige Institute of Management and Research, Indore | Jyoti Thapar, StudentPrestige Institute of Management and Research, Indore
ABSTRACT
Creative and innovative applications of information and communication technologies (ICTs) are important potential tools in enabling educational reform processes thereby, improving both access to education and the quality of education. ICT is regarded as an enabler, which facilitates productivity and enhances quality of learning . It also enhances other aspects of student activities in the information era. ICT has influenced the education in various ways which is potentially a key instrument for students to think creatively, effectively communicate, identify and analyze existing information and create knowledge. But, Most initial programs focused largely on the technology itself, placing very little emphasis on the practical implications of the use of ICTs to meet broad educational objectives. Hence, this paper is a step to explore the various factors affecting the of use of ICT in education system. This will help the people in the education system to effectively use the ICT tools thereby, enhancing its importance in the modern scenario. A survey of 250 students of different colleges was done by administering a specifically designed questionnaire.
Page | 86
Gravity
INTRODUCTION
Information and communication technologies(ICT) ,has emerged as an inevitable phenomenon influencing every walk of life of people in all the sections of society with the ease of availability of enormous computing power and convenient access to large volume and variety of data and information. Due to fast growth of information technology and emerging role of digital media and information, the role ICT in education is becoming more and more important. The use of ICT can helps to light up learning and education system and transformative advancements on a national level. It has created unmatched opportunities in education sector and has enabled the students and teachers to increase there knowledge by using advances in ICT. Thus, internet, multimedia, video conferencing, computer added designs, animation and graphic user interface are all tools which enhance imperative learning in a simpler way and supports the schools and universities on technological edge. ICT can be used as a tool in the process of education in the following ways: Informative tool: It provides vast amount of data in various formats such as Audio, video, documents. Situating tool: It creates situations, which the student experiences in real life. Thus,simulation and virtual reality is possible. Constructive tool: To manipulate the data and generate analysis. Communicative tool: It can be used to remove communication barriers such as that of space and time (Lim and Chai, 2004).
87 | P a g e
Preferences and barriers of usage of ICT tools in the modern education system::A students perception
Education is transforming its way from teacher centric forms of delivery to student centric forms. The use of ICT helps the students to visualize material that would be more difficult to assess in traditional forms of education. It enables students to learn and review and teachers to analyze the students behavior and work. India has a large network of open universities which impart education through distance learning more or providing online course material to the students. Digitization of education is also a significant result of ICT. ICT is also being used to help in teaching through television and teleconferencing. Thus ICT stands for a diverse set of tactical tools and recourses that can be used to promote education on a large scale. In the current Information society, there is an emergence of lifelong learners as the shelf life of knowledge and information decreases. People have to access knowledge through ICT to keep pace with the latest developments (Plomp, Pelgrum & Law, 2007). In such a scenario, education, which always plays a critical role in any economic and social growth of a country, becomes even more important. The various kinds of ICT products available and having relevance to education, such as teleconferencing, email, audio conferencing, television lessons, radio broadcasts, interactive radio counseling, interactive voice response system, audiocassettes and CD ROMs etc have been used in education for different purposes (Sharma, 2003; Sanyal, 2001; Bhattacharya and Sharma, 2007). This paper tries to explore the various factors that influence potential usages of ICT and to study emerging challenges in the use of ICT in education sector . LITERATURE REVIEW Casal (2007) mentions that ICTs also provide a platform for sharing information and knowledge. This can be used for the betterment of program delivery in terms of replication of best practices. It also helps researchers by provision of information, networking, online journals,libraries and data.
Gravity
Muhammad
Z.M.Zain
et.al.(2004)studied
the
impact
of
Information
and
Communication Technology (ICT) on the management practices in the Malaysian Smart Schools and revealed that the impact of ICT has resulted in changes that include the enrichment of the ICT culture among students and teachers, more efficient student and teacher administration , better accessibility to information and a higher utilization of school resources. This analysis revealed that time constraints ,higher administrative costs ,problems related to imposed rigid procedural requirements are among the challenges encountered by the schools. Bottino(2003) and Sharma (2003) mention that the use of ICT can improve performance, teaching, administration, and develop relevant skills in the disadvantaged communities. It also improves the quality of education by facilitating learning by doing, real time conversation, delayed time conversation, directed instruction, self-learning, problem solving, information seeking and analysis, and critical thinking, as well as the ability to communicate, collaborate and learn (Yuenet al, 2003). According to Sanyal and Bikas (2001), the ICTS can support education through various ways such as supporting education in school. Providing distance education and in-service professional development for the teachers, providing non-formal education for out of school children and adults, and enhancing the management of schools. The possibility of real time interaction in all the different aspects of the education system like teaching, collaboration, debates etc hold great promise for the future (Mason, 2000) A key development in the use of ICT in higher education has been the increased use of the Internet and e-mail communications: in some instances this has led to the adoption of virtual learning environments (HEFCE, 2000a). Some educational policy-makers have become quite excited by the potential of the technology to deliver online learning, 89 | P a g e
where many of our universities are developing imaginative responses to the opportunities, sometimes individually, sometimes in groups (HEFCE, 2000b, p. 6), but how are these developments likely to be received by students? High prices of computers and low penetration of internet and telephones are the main obstacles in the growth of e- learning in developing countries. Ehrmann (Ehrmann 1994),identified four distinct approaches of quality education which can be supported by ICT i.e. real time conversion, learning by doing, delayed time conversation and directed instruction. Hawkridge (Hawkridge,et.al.,1990)suggested that the use of ICT can support developing relevant skills in the disadvantaged communities helping in liberating and transformation in addition to improve performance ,teaching and administration, positive impact on the education as a whole. Thomas,(1987), pointed out four major economic consideration that could effect the adoption of ICT in a country are :Financial strength of the society ;attitude of policy makers ;Cost efficency of the technology and budget allocation for the technology. Thomas,(1987),also identified that the cultural element of languages is one of the most significant factor in the implementation of ICT in developing countries . The elements of human factors like language barriers ;cultural differences ;gender issues and nature of society must be addressed to meet the challenge. The success of any ICT and its widespread usage rests mainly on its ability to fullfill socio cultural needs of its citizens and providing gains in commercial terms ;like in India where internet is being used for personnel and socio-communication reasons. These socio cultural factors will lead the developing countries going to the main ICT users
Gravity
OBJECTIVE OF THE STUDY

To explore the potential usages of ICT and emerging challenges in education sector.
METHODOLOGY
The study: The study is exploratory in nature carried out to investigate factors influencing students perception towards use of ICTs. The Sample: Non probability convenience sampling technique was used for data collection . The sample of the study was constituted of 244 respondents from various management colleges of Indore city. Tools for data collection: Primary data for the study was collected through a self structured questionnaire. The questionnaire consisted of 34 statements with 5-point Likert scale Tools for data analysis: The analysis of collected data was done by statistical package for social sciences (SPSS 11.0) and MS Excel 2007.Item total correlation and factor analysis were used to analyze the data. Reliability of the measures: Reliability of the measures was assessed with the use of Cronbach Alpha. Cronbach Alpha allows us to measure the reliability different variables. As a general rule a coefficient greater than or equal to 0.7 is considered acceptable and is a good indicator of reliability. The Cronbach Alpha for the questionnaire is 0.88.Hence it is reliable and can be used for analysis.
FINDINGS
91 | P a g e
Items total Correlation was conducted to identify non significant items and this resulted in dropping of 3 items out of 34 items .The factor analysis was carried out on 31 significant items that resulted into 9 factors that influence students perception towards the use of ICT in education system .These factors are tabularized with their items, eigen values and percent of variances in annexure 1.The discussion of each factor is as follows: Modernization has evolved as the first major factor. It comprises of four items that areModern approach(0.784),Increased the accessibility of information (0.768) ,Improved speed and style of learning( 0.665),user friendly (0.425).The total factor load is 2.845 with 9.202 % of variance. Plomp et al, (2007)said that There is a worldwide need felt for integrating ICT into education in order to improve the pedagogy to reflect the societal change . Effective Learning: This factor comprised of five items namely superior over traditional method of learning (0.706) ,clarity of thoughts (0.682), updating knowledge( 0.644),visual impact(0.591),mobility and compatibility(0.477). Total factor load is 3.1and 8.996 % of variance. According to Bhattacharya and Sharma,( 2007) e- Learning allows higher participation and greater interaction. It challenges the concept that faceto-face traditional education is superior to it. Economical: It has constituted of three items Reduces manpower (0.746) ,Save trees and paper (0.725), Enhanced the teaching through digital medium(0.446). The total factor load is 1.817 and 7.247 % of variance. The study by McGorry (2002) also reveals that ICT can be used as a tool to overcome the issues of cost, less number of teachers, and poor quality of education Increased competency comprises of five items namely improved working environment (0.687) increased national competitiveness (0.665), systematized work (0.523)
Gravity
technological up gradation (0.479), facility of teleconferencing and audio conferencing (0.665).Total factor load is 2.792 and 7.046 % of variance. According to McGorrry (2002) education system also being driven by technological advances, competitive pressures and the positive experiences of many early adopters. Effective communication comprises of four items i.e effective communication (0.594).Safety and precautions (0.561) effective delivery of lectures/presentations (0.536) available anytime anywhere (0.447) The total load is 2.138 and 6.359 % of variance .The study (Sanyal, 2001;Mooij, 2007; Cross and Adam, 2007; UNESCO, 2002; Bhattacharya and Sharma, 2007); confirms the ICT eliminates geographical and time barriers as learners can log on from any place and at any time. Interpersonal skills comprises of three items i.e. increased dependency (0.808) adversely affects the interpersonal skills (0.804) loss of communication skills and interactive abilities between teachers and students (0.665) .The total load is 2.277and 6.163% of variance. According to Mason (2000) It can affect the bonding process between the teacher and the student as ICT becomes a communication tool rather than face to face conversation and thus the transactional distance is increased. Accuracy Four items are associated with this factor; World has come closer (0.629), reduces the chances of human error (0.628). Ample amount of information in less time through various links (0.628) technological development of a country (0.486) Total Load is 2.371and 5.999% of variance. Education is the driving force of economic and social development in any country (Cholin, 2005; Mehta and Kalra, 2006). Considering this, it is necessary to find ways to make education of good quality, accessible and affordable to all, using the latest technology available. Trustworthiness: Two items are associated with this factor. They are no technical problem (0.735), trust worthy(0.616) total load 1.351and 5.565% of variance. Mooij (2007) states that differentiated ICT based education can be expected to provide 93 | P a g e
greater reliability, validity, and efficiency of data collection and greater ease of analysis, evaluation, and interpretation at any educational level. In absence of ICT, most of the responsibility of teaching and learning lies on the teachers. Health hazards: Only single item is associated with this factor i.e. adverse affect on health with total load 0.749 and 4.034% of variance. Future challenges Though ICT offers a whole lot of benefits, there are great challenges which hamper the use ICT in education. ICT in education program require large capital investments. Also, since not all the teachers are experts with ICT they may lack in updating the course content online which can slow down the learning among students. . It can affect the bonding process between the teacher and the student as ICT becomes a communication tool rather than face to face conversation and thus negatively effects the interpersonal skill. The potential of plagiarism is high as student can copy information rather than learning and developing their own skills. Findings in this paper also confirm that use ICT can effect communication skill and it is cost effective also . It can be impersonal, superficial, misdirected, and potentially dehumanizing and depressing and that they can disrupt the interactions that create a learning community (Rovai, 2003). . Another major problem which hampers the growth of ICT in education and development process in Indian economy is poverty and illiteracy. The need is to solve these problems and hence place. Suggestions Information and Communication Technology has the potential to remove the barriers that are causing the problems of low rate of education in any country. effective implementation of ICT takes
Gravity
It mean that adopting the new technologies in education system can result in effective learning which is the most important goal of any educational institute. Although there is availability of resources for ICT but the working environment is perhaps not immediately tangible. Extensive training programme for educators should be conducted by the government and the private Institutions. Students should be encouraged to use latest technologies in their presentations and assignments. Curriculum should be planned such that maximum usage of ICT takes place.
CONCLUSION
ICT provide wider range of best practices and best course material in education, which can foster better teaching. ICT also allows the academic institutions to reach new international educational markets. Thus, ICT enabled education will ultimately lead to the democratization of education. ICT increases the flexibility of delivery of education so that learners can access knowledge anytime and from anywhere. It can improve the quality of learning and thus contribute to the economy. It provides several tangible and intangible benefits for all stakeholders involved in the economic growth of the country. However, integration of ICT in education is a complex process and it can only be possible with tactical support, trained teachers and infrastructures. References:
Bhattacharya, I. & Sharma, K. (2007), 'India in the knowledge economy an electronic paradigm', International Journal of Educational Management Vol. 21 No. 6, pp. 543-568. Bottino, R. M. (2003),'ICT, national policies, and impact on schools and teachers' development''CRPIT '03: Proceedings of the 3.1 and 3.3 working groups conference on
95 | P a g e
Internationalfederation for information processing', Australian Computer Society, Inc., Darlinghurst,Australia, Australia, 3-6. Casal, C. R. (2007), 'ICT for education and development', info ISSN: 1463-6697 Volume: 9 Issue: 4, 3 - 9. Chandra, S. & Patkar, V. (2007), 'ICTS: A catalyst for enriching the learning process and library services in India', The International Information & Library Review 39(1), 1-11. Cholin, V. S. (2005), 'Study of the application of information technology for effective access toresources in Indian university libraries', The International Information & Library Review 37(3),189-197. Cross, M. & Adam, F. (2007), 'ICT Policies and Strategies in Higher Education in South Africa:National and Institutional Pathways', Higher Education Policy 20(1), 73-95. Ehrmann, Stephen C, (1994), responds to the triple challenge facing post secondary education: access, quality, costs. Report prepared for the OECD, international conference. Hawkride, D., jawoski , J., and MC mohan , H. (1990), computers in the third world schools : examples. Experiences and issues, London, Macmillan. Lim, C. P. & Chai, C. S. 2004. An activity-theoretical approach to research of ICT integration in Singapore schools: Orienting activities and learner autonomy. Computers & Education 43(3): 215-236.
Gravity
Mason, R. (2000), 'From distance education to online education', The Internet and Higher Education 3(1-2), 63-74. McGorry, S. Y. (2003), 'Measuring quality in online programs', The Internet and Higher Education 6(2), 159-177. McGorry, S. Y. (2002), 'Online, but on target? Internet-based MBA courses: A case study', The Internet and Higher Education 5(2), 167-175. Mehta, S. & Kalra, M. (2006), 'Information and Communication Technologies: A bridge for social equity and sustainable development in India', The International Information & Library Review 38(3), 147--160. Mooij, T. (2007), 'Design of educational and ICT conditions to integrate differences in learning:Contextual learning theory and a first transformation step in early education', Computers inHuman Behavior 23(3), 1499--1530. Muhammad Z.M. Zain , Atan H. Idrus R. (2004) the impact of information and
communication technology (ICT) on the management practices of Malaysian smart schools. International generals of educational development , 24(2), 201-211 Plomp, T.; Pelgrum, W. J. & Law, N. (2007), 'SITES2006International comparative survey of pedagogical practices and ICT in education', Education and Information Technologies 12(2), 83-92. Rovai, A. P. (2003), 'A practical framework for evaluating online distance education programs',The Internet and Higher Education 6(2), 109-124.
97 | P a g e
Sachdeva , sameer (2003) , E-Readiness assessment. E-commerce, 2(12), 50 Sanyal, B. C. (2001), 'New functions of higher education and ICT to achieve education for all',Paper prepared for the Expert Roundtable on University and Technology-for- Literacy and Education Partnership in Developing Countries, International Institute for EducationalPlanning, UNESCO, September 10 to 12, Paris Sharma, R. (2003), 'Barriers in Using Technology for Education in Developing Countries', IEEE0-7803-7724-9103. Sida (1999) , IT in Swedish development co_operation : suggestions for raise of including the low income countries , finance and corporate development department , sida , swedan Thomas , T.M. (1987) , growth of communication technology , the nature of educational technology , educational technology , 4 as cited in INGOU . communication technology for distance education , FS-318, 34 UNESCO, (2002), 'Open And Distance Learning Trends, Policy And Strategy Considerations',14 UNESCO. Yuen, A.; Law, N. & Wong, K. (2003), 'ICT implementation and school leadership Case studies of ICT integration in teaching and learning', Journal of Educational Administration Vol. 41 No. 2, 158-170. HEFCE (2000a) HEFCE launches e-University business model, press release, October,http://www.hefce.ac.uk/News/HEFCE/2000/euniv2.htm
Gravity
HEFCE (2000b) Business model for the e-University, PricewaterhouseCoopers Report, 00/44, p. 6,http://www.hefce.ac.uk/pubs/hefce/2000/00_44.htm
Annexure
Factors Items ICT is a modern approach. The use of ICT has increased the accessibility of information. Modernization The use of ICT has improved the speed and style of learning. ICT is user friendly. Item load 0.784 Factor load %variance
0.768
0.665
2.645
0.428
9.202
It leads to visual impact which helps in memorizing things easily.
0.591
ICT is more attractive than the traditional method of learning.
0.706
99 | P a g e
ICT improves the clarity of thoughts.
0.682
ICT is a significant method of updating knowledge.
0.644
3.1
8.996
Effective Learning
ICT provides the facility of mobility and compatibility.
0.477
This system helps to save trees and paper. Economical ICT requires less manpower for its conduction. It has enhanced the teaching through digital medium. ICT provides the facility of teleconferencing and audio conferencing. ICT has lead to Increased competency technological up gradation.
0.725 1.917 0.746 7.247
0.446
0.438
0.479 7.046
Gravity
ICT has improved working environment. ICT has increased national competitiveness. ICT helps in systematic work.
0.687 0.665 0.523
2.792
ICT helps in effective delivery of lectures/presentations.
0.594
Effective communication
ICT needs special safety and precautions. ICT helps in effective communication. ICTs services are available anytime anywhere. ICT has increased dependency ICT adversely affects the interpersonal skills. ICT results in loss of communication skills and interactive abilities between teachers and students.
0.561
0.536 0.447
2.138 6.359
Interpersonal skills
0.804
0.808
2.277
0.665
6.163
101 | P a g e
Accuracy
ICT reflects the technological development of a country. ICT reduces the chances of human error. ICT gives ample amount of information in less time through various links. World has come closer with the use of ICT. Use of ICT is trust worthy. No technical problem is associated with the use of ICT. Use of ICT has adverse affect on health.
0.486
0.628
0.628
2.371
0.629 0.616 0.735 1.351
5.999
Trustworthiness
5.565
Health hazards
0.749
0.749
4.034
Chapter Seven
A study on Hookah Addiction amongst undergraduate students: With special reference to Indore city
Sukhjeet Matharu Assistant Professor, Prestige Institute of Management and Research, Indore|
Manvi Sharma StudentPrestige Institute of Management and Research, Indore Mayank Chhabra StudentPrestige Institute of Management and Research, Indore | Mohil Tiwari, StudentPrestige Institute of Management and Research, Indore
Abstract:
Hookah with or without tobacco is highly addictive product which is injurious to health causing diseases such as lung infections. The main aim of present study is to determine the prevalence of hookah addiction amongst the undergraduates in Indore City. Now a day Hookah Smoking is becoming more popular amongst undergraduates. The study will be conducted in month of March 2011 on 3-4 hookah lounges. A sample of hundred respondents will be considered. A structured questionnaire will be used for the purpose of data collection. Major factors that motivate students to go for this addiction will be identified on the basis of responses of the sample respondents. Through this paper an attempt has been made to highlight the adverse effects of hookah smoking and create awareness amongst the undergraduate students.
INTRODUCTION
Hookahs also known as water pipes are beautiful and exotic pieces of artwork generally made up of metal or glass scrollwork or multicolored hoses and bowls. Hookahs come in varying sizes and can have either a single or multiple hose hook-up. The Hookah or the water pipe usually consists of four parts. The base, a smoke Page | 103
chamber partially filled with water. The bowl holds both the shisha and the heating source usually charcoal. There is an internal pipe dipped in to the water, it connects the bowl and the base. A tube connects to the pipe and the air inside the base allows the user to inhale the smoke. While smoking a hookah, the user inhales through the mouthpiece that is connected to the tubing. This creates a pressure difference that forces the air past the charcoal or heating source and heats up the shisha which creates smoke. This smoke is then cooled as it passes through the water chamber. Thus we can say that the hookah operates with indirect heat and water nitration. The hookah culture in India started from South Asian Countries. Mostly it is used for smoking fruit flavored tobacco. 'Shisha', western version of hookah, a well known local smoking tool, has captured the youngsters belonging to higher class while the Shisha bars are doing immense business. The name 'Shisha' may seem orient to the readers, but the local "hookah" is well known as a smoking tool and has come to the generation with a new decoration, named, Shisha, already welcomed in the western countries. In the hookah parlors there is common sight of youngsters sitting in clusters munching on the bar food, relaxing and taking long drags of flavored smoke while kidding around. According to tobacco trade magazines and retailers throughout the nation, the hookahs have been growing in popularity over the past seven years. The entire credit for its popularity amongst undergraduates goes to its extensive marketing and easy availability. A number of hookah parlors have cropped up in the city in the recent few years especially around the higher education institutes. The young crowd is attracted towards it without being aware of its harmful effects or just by ignoring its adverse effects.
Literature review Hookahs, also known as water pipes, originated about 400 years ago in Persia and India. They are packed with tobacco cured with an array of flavors, often
Gravity
fruits like bananas, strawberries and pineapple. In the United States, hookahs were rarely seen outside a handful of ethnic bars and restaurants until a few years ago. It is often said that if hookah is addictive, its more addictive as a social thing than as a chemical thing. (Cox and Jeramy) The hookah bar operators charge a relatively small fee for providing the shisha and charcoal flavored hookah apparatus. The earlier in age people begin smoking, the more likely they are to become strongly addicted to nicotine, and physical addiction to nicotine can develop extremely rapidly. (Wakefield et al, 1998) These facts are likely true whether the nicotine is delivered via cigarette or hookah. Cigarette smoking in the United States is at its lowest level in 55 years, with proportionate decreases among adolescents. (Johnston et al, 2005) An anonymous quote from www.theshisha.com states, "Smoking shisha is nothing like smoking a cigarette. Cigarettes are for nervous people, competitive people, and people on the run. When you smoke shisha, you have time to think. It teaches you patience and tolerance, and gives you an appreciation of good company. Shisha smokers have a much more balanced approach to life than cigarette smokers." The biggest myth surrounding the hookah is that it is safer than smoking cigarettes. It is true that filtering the tobacco through water removes some of the dangerous toxins. However, according to a World Health Organization Advisory, even after passing through water, the tobacco smoke still contains high levels of carcinogens, including carbon monoxide. The smoke itself transports considerable levels of nicotine - nearly three times that of smoking cigarettes, increasing the risk of addiction. Typically, a hookah session lasts 3 0
105 | P a g e
minutes to an hour. This amount of time exposes the user to 100 to 200times the smoke volume inhaled by a single cigarette.(Jaecks Swanson, 2008).
Objectives (1)To explore factors that affect undergraduates perception about hookah smoking. (2) To create an awareness about the ill effects of hookah smoking
Methodology The study is exploratory in nature and based on primary survey. It was conducted in the month of March 2011. The sample of the study constituted of 100 respondents from Indore city. The respondents were selected on the basis of regularity of visits to the hookah parlors. The data was collected through a self structured five point likert scale. For data analysis item-total-correlation was calculated on the data collected for 25 items to find out which items significantly contribute towards measuring the perception of undergraduates for hookah smoking. The data was finally subjected to Principal Component Method of Factor Analysis. Results and Discussions On applying statistical package for social science (SPSS) on our data having 25 questions which further in rotated component matrix there are seven factors which came out. Factor 1 Trendy is constituted of 7 items i.e it has become a necessity in my life. Hookah smoking was opted by me to show off & act like adults. I feel it is in fashion & trend. It acts as a stress reliever for my family problems. I feel restless if I am not able to smoke hookah. On seeing my friends smoking hookah creates a desire in me too. Total load of this factor is 3.967.Queston number 3 i.e It has become a necessity in my life has the highest factor load of .744. Eissenberg et al., in a cross-sectional study conducted at a large public university, found that students who were current water
Gravity
pipe users were more likely than students with no history of water pipe use to have smoked cigarettes, cigars, or cigarillos in the preceding 30 days; to believe that water pipe use makes their peers look cool; and to believe that water pipe use is socially acceptable among their peers. They also found, in general, that water pipe users were younger, that they were less likely to be African American, that they report lower perceived harmfulness or addictiveness of water pipe use compared with cigarette use, and that they report lower perceived social acceptability Many hookah smokers feel smoking hookah is trend in society and acts as a stress reliever from their problems it has become a status symbol. Factor 2 Appeal are constituted of 7 items i.e I never stay behind in trying new things. I am delighted by the flavor of hookah. I have recently acquired this habit. Hookah smoking makes me feel elated & happy. I can afford smoking hookah. Hookah is environment friendly? Hookah smoking is good for health. Total load of this factor is 4.015. Question number 12 i.e I never stay behind in trying new things has the highest factor load of .711 For young adults already in that developmental place of believing no harm will befall them, the message of risk goes largely unheard. Though hookah smoking is a social fun and does not result in staining of teeth, does not smell like a cigarette, there is no hangover, the dangerous tar is filtered out through water, aids in relaxation and stress relief (Jaeks & Swanson, 2008). Factor 3 Awareness are constituted of 4 items i.e Hookah parlors are easily accessible. I am aware of the ingredients used in the hookah. I am aware of the warning signals displayed in the hookah parlors. I take my own decisions. Total load of this factor is 2.655. Question number 13 i.e Hookah parlors are easily accessible has the highest factor load of .797 For young adults already in that developmental place of believing no harm will befall them, the message of risk goes largely unheard. The hookah parlors have cropped up in places near their educational institutes and thus are easily accessible. Though hookah smoking is a social fun and does not result in staining of teeth, does not smell like a cigarette, there is no hangover, the dangerous tar is filtered 107 | P a g e
out through water. It aids in relaxation and stress relief. It has certain implications such as increased exposure to smoke (Jaeks & Swanson, 2008) Factor 4 Prohibition are constituted of 3 items i.e I am aware that hookah smoking is addictive and injurious to health. If given a chance I would give up this habit. Hookah parlors should be banned. Total load of this factor is 2.144. Question number 20 i.e If given a chance I would give up this habit has the highest factor load of .759. Hookah parlors are on a rise in the city. The media has always played a persuasive role in the sense of highlighting the problem for attracting the attention of the responsible high authorities to take some serious action with regard to issue of license to such parlors. But a mass effort will prove helpful in banning the hookah parlors cropping up at an alarming rate in the city. In addition to the dangers of the heated tobacco and accompanying toxins, the sharing of water pipes may lead to an increase in orally transmitted infectious diseases. Factor 5 Ill effects are constituted of 2 items i.e. I am aware that hookah kills one human being every six seconds. I am aware of harmful effects of hookah smoking. Total load of this factor is 1.436. Question number 6 i.e. I am aware of harmful effects of hookah smoking has the highest factor load of .720. Smoking becomes such an integral part of the smoker's life that the rapid emergence of many withdrawal symptoms, when trying to kick the habit, such as headaches and sleep disorders, are extremely troublesome. Added to this are frustration, a general sense of dissatisfaction, tendency to isolation and depression, as well as the continual craving for nicotine.(Ramkumar 2010) Factor 6 Persuasion is constituted of 2 items i.e. I have been an average performer in studies. For the first time I was pressurized by my friends to taste it. Total load of this factor is 1.198.Question number 23 I have been an average performer in studies has the highest factor load of .645. Most of the respondents were of the opinion that they
Gravity
never had been excellent performer in academics. In case of hookah addiction it is interesting to note that peer group pressurizing plays a major role. Factor 7 Counselling is constituted of 1 item i.e. I have been counselled by my teachers/parents to quit this habit. Total load of this factor is .675. Today it is strongly required that parents and teachers should play a motivational role in dispensing moral and ethical values to their wards. This will definitely help the youngsters to have strong determination to stay away from such addictions and thus move their career and lives in positive direction.
Conclusion
Since a number of hookah parlours have cropped up in the city especially around colleges and high schools. It is imperative for the higher authorities to restrict them. Media and other means of mass communication have always tried to attract the attention of public towards the growth of these hookah parlours at an alarming rate. Though the warnings that hookah contains tobacco and may be injurious to health are displayed in the parlours, but still the students are unaware of its harmful effects. Many previous studies suggest that water pipe tobacco smoking is prevalent among high school students as well. Self motivation and determination is required for the adolescents to get rid of this habit. There is a need for further research and education in the area of hookah addiction amongst the youngsters, and public health personnel can play an important role in enhancing knowledge in this area.
109 | P a g e
References
Cox&Jeremy .Despite Warnings, hookah bars, restaurants on rise: Public Health experts say that hookah aficionados should worry about health ramifications.
Eissenberg T, Ward KD, Smith-Simone S, Maziak W. Waterpipe tobacco smoking on a U.S.college campus: prevalence and correlates. J Adolesc Health. 2008;42: 526-529.
Johnston L, O'Malley P, Bachman J, Schulenberg J. Monitoring the Future: National Survey Results on Drug Use, 1975-2004. Volume II: College Students & Adults Ages 19-45, 2004.
Jackson D, Aveyard P. Waterpipe smoking in students: prevalence, risk factors, symptoms of addiction, and smoke intake. Evidence from one British university. BMC Public Health. 2008;8:174.
Jaecks, Keilli Swanson,Smoking the Hookah 2008,Medical Sciences Dentistry, pp 38-39, 43-44 http://search.proquest.com/docview/225017638?accountid=135227 assessed on April 2,2011 at 11:00 a.m.
Primack BA, Sidani J, Agarwal AA, Shadel WG, Donny EC, Eissenberg TE. Prevalence of and associations with waterpipe tobacco smoking among U.S. university students. Ann Behav Med. 2008;36:81-86. Ramkumar K.S. Mc.Clatchy. Hubble-bubble Trouble: Shisha smoking popular for relaxation, but not without health risks.Tribune Business News, Journal of Business and Economics, United States, Published on Sep2010. .http://search.proquest.com/docview/749160558?accountid=135227
Wakefield MA, Terry-McElrath YM, Chaloupka FJ, et al. Tobacco industry marketing at point of purchase after the 1998 MSA billboard advertising baa AmJ Public Health. 2002;92:937-940. http://www.theshisha.com accessed on April 2,2011 at 11:00 a.m.
Gravity
Annexure
Factor Item It has become a necessity in my life. Hookah smoking was opted by me to show off & act like adults. I feel it is in fashion & trend. Trendy It acts as a stress reliever for my family problems. I feel restless if I am not able to smoke hookah. On seeing my friends smoking hookah creates a desire in me too. I never stay behind in trying new things. Appeal I am delighted by the flavor of hookah. Hookah smoking makes me feel elated & happy. I have recently acquired this habit. I can afford smoking hookah. Hookah is environment friendly? Item Load 0.744 0.687 0.685 0.626 3.967 6.549 26.197 Factor Load Eigen Value Percentage of Variance
0.621
0.604
0.711 0.629 0.592 0.568 0.554 0.49 4.015 2.997 11.989
111 | P a g e
Hookah smoking is good for health. Hookah parlors are easily accessible. Awareness I take my own decisions. I am aware of the ingredients used in the hookah. I am aware of the warning signals displayed in the hookah parlors. If given a chance I would give up this habit. Prohibition Hookah parlors should be banned. I am aware that hookah smoking is addictive and injurious to health. I am aware of harmful effects of Ill effects hookah smoking I am aware that hookah kills one human being every six seconds. Persuasion I have been an average performer in studies. For the first time I was pressurized by my friends to taste it. Counseling I have been counseled by my teachers/parents to quit this habit.
0.471 0.797 0.711 0.612 0.535 2.655 1.648 6.591
0.759 0.706 0.679 2.144 1.513 6.051
0.72 1.436 0.716 1.301 5.204
0.645 0.553
1.198
1.183
4.731
0.675
0.675
1.061
4.244
Gravity
Chapter Eight
Youngsters perception of Social Networking Site: An Empirical Study
Sukhjeet Matharu Assistant Professor, Prestige Institute of Management and Research, Indore| Bharti Motwani, Assistant Professor, Prestige Institute of Management and Research, Indore| Swapnil Pisal StudentPrestige Institute of Management and Research, Indore | Shantanu Dev StudentPrestige Institute of Management and Research, Indore | Pallavi Shivhare, StudentPrestige
Institute of Management and Research, Indore Abstract Today youngsters are spending a great deal of time using Social Networking Sites like Facebook,orkut, twitter, blog, linkedin,myspace,hi5, yahoo messenger to access public life. These social networking sites are easily accessible to the youngsters with the help of electronic gadgets like cell phones, laptops, and palmtops. These sites exert a great influence on the youngsters mind and even their life schedule is affected by it. The present paper examines the differences of the perception of a cohort of youngsters of 16- 24 years old on the basis of gender. This paper also tries to determine different sites used for social networking, membership availed, information shared and various tools for using them. Perception of security issues and time spent by youngsters are also focused in this research paper for providing better view of youngsters in usage of social networking sites.
Introduction
113 | P a g e
Social networking refers to the use of a specific type of website focused on the creation of online social networks which allow its users to interact. These are web-based services that allow individuals to construct a public or semi-public profile within a bounded system, to articulate a list of other users with whom they share a connection, to view and traverse their list of connections and those made by others within the system. The nature and nomenclature of these connections may vary from site to site. .It is a web site that provides a virtual community for people interested in a particular subject, to simply "hang out" together or to increase their circle of acquaintances. There are dating sites, friendship sites, sites with a business purpose and hybrids that offer a combination of these. Globally, hundreds of millions have joined one or more social sites such as Facebook, MySpace, Twitter and LinkedIn are highly popular among the youngsters. These sites help them in communicating with other people including their friends, classmates, family, relatives and other persons with similar interests. Social Networking sites have gained popularity among the youngsters as these are extremely helpful in developing interpersonal relationships. Human beings are societal and in order to survive in this society they develop relationships with other humans. SNS have enhanced relationship with family and friends especially those that people have not seen or heard from in a long time. Youngsters make use of these sites to reconnect with each other and also to keep in touch with everyone. Youngsters prefer to log on to these sites on a regular basis. It has become a sort of addiction to be logged on to these sites. These sites are freely accessible with the help of a computer connected to the internet and with the help of mobile phones that enable internet browsing. Users of social networking sites can view profile of other persons which includes their details, photos, videos, applications used by them and comments posted by other persons.
Gravity
Social networking sites help interaction with others very easy whether you know them or not. On one hand these sites promote friendship among users without face to face interaction. Such sorts of friendships are not always reliable but to some extent suspicion is involved in it. Youngsters are able to maintain their identity, interact with their peers. Social games offered such as Farmville, teen Patti, mafia war are a great source of entertainment. Facebook : was launched in 2004 as a service meant for students enrolled at Harvard University. Soon after, it opened its doors to students at other colleges, first to members of prestigious institutions then gradually a more diverse set of schools (boyd and Ellison, 2007). In 2005, it provided limited access to teenagers from specific high schools and members of certain companies. Finally, in 2006, the service became accessible to the public. Orkut: is a social networking site and is owned and operated by Google Inc. It is designed to help users meet new friends and maintain existing relationships. The website is named after its creator, Google employee Orkut Buyukkokten. It is one of the most visited websites in India and Brazil. As of April 2010, 48.0% of Orkut's users are from Brazil, followed by India with 39.2% and United States with 2.2%. As of March 2011.The website currently has more than 100 million active users worldwide. Anyone 18 years old or older can join Orkut. LinkedIn: is a business-oriented social networking site. It was founded in December 2002 and launched in May 2003 it is mainly used for professional networking. As on 22 March 2011, LinkedIn reports more than 100 million registered users, spanning more than 200 countries and territories worldwide. The site is available in English, French, German, Italian, Portuguese and Spanish.
115 | P a g e
Twitter: is a social networking and micro blogging website, based in San Francisco, California, also having servers and offices in San Antonio, Texas and Boston. Twitter, Inc. was originally incorporated in California, but has been incorporated in the jurisdiction of Delaware since 2007. Since being created in March 2006 by Jack Dorsey and launching that July, the website has gained popularity worldwide and is estimated to have more than 200 million active users, generating 65 million tweets a day and handling over 800,000 search queries per day. It is sometimes described as the SMS of the Internet. Twitter enables users to send and read text-based posts composed of up to 140 characters, called tweets, which are displayed on the user's profile page. Users can subscribe to other users' tweets this is known as following and subscribers are known as followers or tweets ('Twitter' + peeps '). By default, tweets are publicly visible, though senders can restrict message delivery to just their followers. Users can tweet via the Twitter website, compatible external applications (such as for smart phones), or by Short Message Service (SMS) available in certain countries. While the service is free, accessing it through SMS may incur phone service provider fees. Literature review A recent study found that college students use Facebook, a popular social networking site, to maintain their social capital . They use Facebook to stay linked with people with whom they used to be more closely involved, e.g., former classmates (Ellison, et.al. 2007). A related study investigated whether college students use Facebook for social searching or social browsing. Social searching occurs when a Facebook user looks up particular individuals he or she already knows or has become aware of via an offline connection in order to learn more about them. Social browsing, on the other hand, occurs when users try to find strangers online whom they would like to meet
Gravity
offline. Overwhelmingly, college students are using Facebook for social searching (Lampe et.al. 2006). The results of the study by Coyle and Vaughn, 2008 shows that the main purpose of social networking is to keep in touch with friends. Our findings also indicate that social networking sites are used for trivial communications (i.e., unimportant message content) with friends, both close and non close, and that they are used to maintain friendships, but as a non central form of socializing. Social networking may be convenient for retaining contact when time and distance are issues, but it does not replace voice calls and face-to face communication. Not a single respondent of the 68 people we surveyed answered that he or she used social networking sites to meet new people. SNWs have become most popular among younger users such as university students. One reason they may have become so popular among younger individuals is that they have an equalizing effect in that individuals often feel the freedom to express themselves in ways not possible through other outlets. SNWs have even been identified as increasing self-esteem among younger people. University students access SNWs from various locations: home, school, and other locations, such as libraries, coffee shops, and even Internet cafes. Each location has varying amounts of privacy and concurrent offline social involvement with others. We believe that home locations allow maximum privacy and freedom of self-expression; thus, we expect that SNW users who primarily access their SNWs at school or elsewhere are less likely to make friends online. ( Peter cardon et al, 2009) As with any type of excessive Internet use, overuse of SNWs has the potential to negatively affect an individuals study, work, health, and personal relationships. Young adults are more likely than any other age group to have an SNW and engage in higher
117 | P a g e
levels of use (almost 3 hr=day). Despite the increasing popularity of SNWs, however, there is still little known about the psychosocial variables that predict peoples level of use. Objectives 1. To comparatively analyse the perception of youngsters about social networking sites on the basis of gender. 2. To determine the extent of usage and popularity of social networking sites. 3. To determine the different purposes and tools associated with the usage of social networking sites. 4. To determine the various information provided by the users on social networking sites. Hypotheses H01: There is no significant difference between male and female youngsters in their
perception of the social networking sites. Methodology The Study: The study is exploratory in nature and based on primary survey. It was conducted in the month of March 2011. The Sample: The sample of the study constituted of 150 respondents from Indore city. The respondents were selected on the random basis and mainly belonged to the age group of 17-25 years. Tools for Data Collection: The data was collected through a self structured questionnaire which was divided in 3 sections. The first section had general
Gravity
information while the second section had questions regarding usage and purposes of social networking sites and the third section constituted of five point likert scale. Tools for Data Analysis: For data analysis, percentage analysis was applied on some questions and MS-Excel was used for calculating item-total-correlation for 24 items to find out significant items contributing for measuring the perception of youngsters towards the use of social networking sites. Since, all the item correlation was found to be greater than 0.196 so all the items were subjected to further analysis. Statistical analysis was done using SPSS 18.0 and independent t-test was used to compare the perceptions of different genders. Results and Discussions Hypotheses Testing: Mean perception score of male respondents is 47.65476 and of female respondents is 51.81818. The results of H01 reveal that there is no significant difference in the perception of male and female youngsters in their perception of the social networking sites. As t= 0.0812 > 0.05, therefore hypothesis H01 is accepted. The outcome was in contrast to the findings of the study by Morahan et al. 2003. In his study the results of chi-square analysis indicated that there was a significant difference in the extent of sharing of opinions among males and females (p value <.05, hypothesis rejected). The reason for this could be that women in India are still cautious about using SNWs for various reasons. Many factors, like demographic characteristics (Whitty, 2002) and psychological characteristics (Morahan-Martin & Schumacher, 2003), affect an individuals online social behavior. The results of this study indicate that there are significant differences in the usage of SNWs based on demographic characteristics like age, usage of the Internet, and gender. Morahan-Martin, J., & Schumacher, P. (2003).
119 | P a g e
Other Parameters used in usage of Social Networking sites: Membership of social networking sites: As depicted in figure 1, maximum youngsters were the members of Facebook, Orkut was also preferred by many users but twitter, Hi5, MySpace and LinkedIn were least preferred sites by youngsters for social networking.
150 100 50 0
127 84 30 12 9
Figure 01: Member of the social networking sites

Purposes : Out of 150 respondents , 94 respondents main purpose for using social networking sites was Connectivity with friends, 38 users used for General awareness, 29 users were concerned because they wanted to move with trends, 75 preferred because they wanted to chat , 45 were interested just for leisure and fun and 21 people were interested for establishing network (fig 2)
Gravity
94 100 80 60 40 20 0 75 38 29 40 21
Figure 02: Purpose of using social networking sites

Trust on social networking site: out of 150 respondents, 91 respondents trusted that their site will not use their information in a wrong way while 59 did not had trust on the sites as far as their personal information was concerned.
121 | P a g e
59 trust site 91
Figure 03: Trust on the social networking site

Tools to use social networking sites: The different tools used by people for accessing networking sites are PC, laptop, Smartphone etc. Out of 150 respondents, 95 used their individual laptops for social networking sites, 75 used PC for social networking sites, 35 used smart phone while only 10 used other means for social networking sites.
Gravity
100 90 80 70 60 50 40 30 20 10 0
95
75
35
10
PC
laptop
smartphone
others
Figure 04: Tools to use social networking sites.

Extent of usage of social networking sites: 95 of 150 respondents spend time less than 2 hrs for social networking sites, while 28 users used to spend more than 5 hrs for social networking and only 27 users spend between 2 to 5 hrs for social networking sites.
usage < 2 yrs 95 5 yrs> usage > 2 yrs
28 27
Figure 05: Extent of usage of social networking sites.

Information provided on sites: As depicted by figure 6, 100 respondents provided their e-mail ID on the site, while everybody provided their mobile no on the site. Only 80 users disclosed their real names on the sites, while only 77 people actually inserted their photographs on the site.
123 | P a g e
160 140 120 100 80 60 40 20 0 100 101 150 80 64 77 73
Figure 06: Information provided on social networking sites
Conclusion
The present study shows that there are no gender differences in the perception of users regarding social networking sites. The study revealed that Facebook was the most popular social networking site in the view of the youngsters. A great proportion of the students lacked trust on the website as far as the personal information was concerned. Connectivity with the friends emerged as the main reason behind the usage of social networking site while other prominent reasons were meeting with trends, chatting, leisure and fun etc. To better evaluate the impact on SNW usage on youngsters, we suggest that future research is needed to assess the differential use of social networking sites across the world. Furthermore, this study relied on group samples of university students in Indore city and was thus not necessarily representative of the cultures at large; therefore, future studies that include representative samples of national cultures could contribute further to research about offline and online social ties across cultures.
Gravity
References
C. Lampe, N. Ellison, and C. Steinfield, A Face(book) in the Crowd: Social Searching vs. Social Browsing, Proc. 20th Anniv. Conf. on Comput. Supported Cooperative Work (CSCW 06) (Banff, Alberta, Can., 2006), pp. 167170. Caplan S. Problematic Internet use and psychosocial wellbeing: development of a theory-based cognitive-behavioral measurement instrument. Computers in Human Behavior 2002; 18:55375. Cardon, Peter W. et al. Online and Offline Social Ties of Social Network Website Users: An Exploratory Study in Eleven Societies.(Journal of computer information systems, pp. 54- 64 Fall 2009, University of South Carolina, Columbia, SC 29208 Cheryl L. Coyle and Heather Vaughn, Social Networking: Communication Revolution or Evolution? Bell Labs Technical Journal 13(2), 13-18 (2008) Alcatel-Lucent, Published by Wiley Periodicals, Inc. Published online in Wiley Interscience (www.interscience.wiley.com) Morahan-Martin, J., & Schumacher, P. (2003). Loneliness and social uses of the Internet. Computers in Human Behavior, 19, 659671. Murnan C. Expanding communication mechanisms: theyre not just e-mailing anymore. Special Interest Group on University and College Computer Services 2002; 5:26772. N. B. Ellison, C. Steinfield, and C. Lampe, The Benefits of Facebook Friends: Social Capitaland College Students Use of Online Social Network Sites, J. Comput.-Mediated Commun., 12:4 (2007), 11431168. Raacke J, Bonds-Raacke J. MySpace and Facebook: applying the uses and gratifications theory to exploring friend- 758 Pelling and White networking sites. CyberPsychology & Behavior 2008; 11: 169 74.Volume 12, Number 6,2009. S. Henderson, The Social Network, Support and Neurosis: The Function of Attachment in Adult Life, British J. Psychiatry, 131 (1977), 185191. Whitty, M. T. (2002). Liar, liar! An examination of how open, supportive and honest people are in chat rooms. Computers in Human Behavior, 18, 343352.
125 | P a g e
Annexure
Levene's Test for Equality of Variances F Sig. t df Sig. (2-tailed) ean Difference Error Difference M Std. 95% Confidence Interval Lower Upper Equal variances assumed2.104336 0.148998 -1.75541 148 0.081259 -4.16342 2.37177 -8.85033 0.523488 Equal variances not assumed -1.77838 145.345 0.077432 -4.16342 2.34113 -8.79048 0.463637
TOTAL
TOTAL
Group Statistics GENDER N Mean Std. Deviation Std. Error Mean 1 84 47.655 15.077 1.645025364 2 66 51.818 13.533 1.665767929
Chapter Nine
A Study on the Export Potential of Soya, Leather and Textile from Madhya Pradesh
Manish Joshi, Assistant Professor, Prestige Institute of Management and Research, Indore| Anshul Diwakar, StudentPrestige Institute of Management and Research, Indore | Rohit Maal, Student Prestige Institute of Management and Research, Indore | Rahul Kabra, Student Prestige Institute of Management and Research, Indore
ABSTRACT
The Madhya Pradesh has immense potential for growth of exports in various sectors. The purpose of this research is to determine the export potential of Soya, Leather and Textile sectors from Madhya Pradesh on the basis of their recent export performance from the state. Statistical data that is used for our research, provided by several organizations like DGFT, SEZ, which helped us to validate our results to determine the contribution of the state in the international trade & in Indian economy. We assume and hope that this will enable to produce efficient and useful results for the entrepreneurs, government and who so ever it may concern. In our study we collected secondary data from reliable sources like government websites, business magazines etc. as per it was required. Our emphasis will be primarily on identifying the export growth for recent decade of the mentioned sectors Soya, Leather and Textile. For the same we applied the Trend-Analysis method on the available statistical data of above mentioned sectors to derive the export potential from the Madhya Pradesh. This study inculcates the information regarding the export potential of our state: Madhya Pradesh. It will encourage stakeholders to initiate the exports of concerning sectors along with the sustainable growth and that will not only lead to promotion of exports of our state but also this will give the pace to growth of emerging Indian economy.
Page | 127
INTRODUCTION
Madhya Pradesh exports a variety of products and services to both developed and developing countries. The details of exports of products surveyed by IIFT which do not include iron, steel, cotton yarn are furnished below:
Products Soybean Extractions
Exports *
Export Markets Indonesia, South Korea, Japan, Singapore, Malaysia, China, Iran, Thailand. Saudi Arabia, Turkey, Malaysia, Russia
1344
Soya Products
20
Leather Products
170
U.K., Germany
Silk Goods
10
U.S.A, Germany
Readymade Garments 40
U.S.A, France, Germany, Kuwait, U.A.E.
Castings Auto Parts Pharmaceuticals
98 30 10
USA, UK, Italy, Middle East USA, Iran, UK, Italy, Middle East Australia, Sri Lanka, USA, UK, Germany, Middle East
Gravity
Cement Computer Software Handicrafts Medicinal Plants Tendu Leaves/Bidi Diamond Manganese Ore Total
* Export values in Rs. in Crores
116 34 8 5 17 1000 30 2,927
Nepal, Bangladesh, Bhutan USA, Europe USA, Europe USA, Canada, West Europe, Japan, Indonesia Pakistan, Sri Lanka, UAE, USA USA, Western Europe Japan, China
Exports performance of these various indicates in the above table covering 22 products valued at Rs.2, 927 crore, represent around 75 per cent of the total exports from the State of the year 2001-2002. It may be seen that soybean extractions, contributing 44 per cent of the total exports, dominate the external sector of the State. (http://www.sezindore.com/exports.html dated: 23rd April 2011 at 2.18 pm)
Export Scenario of SOYA in Madhya Pradesh The Majority of all the soybeans in India are grown in the province of Madhya Pradesh. Alone, this province produces 81 percent of all the soybeans grown in India. The remaining growing areas are centered on Madhya Pradesh, which lies in the center 129 | P a g e
of the nation. In most of India, soybeans are planted from the first of June through the end of August. Soybeans will then begin to flower and develop pods during the time span of mid-July through mid-October. The harvest will then take place from midSeptember through the end of December. In India Madhya Pradesh, Maharashtra, Rajasthan and Andhra Pradesh are the major producers of soybeans. Madhya Pradesh tops the list. Nearly 88% of soybean is produced in the state. During 1997-98 total soybean production in the state was 49.19 metric tons which was about 84.2% of the total produce.
SOPA The Soybean Processors Association of India, popularly known as SOPA. Is the only national level body representing the soybean processors, famers, exporters and brokers in India working towards the aim to strengthen soybeans as a viable crop? The main objective of SOPA is to encourage the development and promotion of soy-bean products in the interest of the farmers as well as the processors. SOPA was established in 1979 with its headquarters at Indore in the state of Madhya Pradesh, the main soybean- growing region of India. Soya bean has been used as a source of protein for many years in human diets Soya bean mean is the byproduct of soya bean, obtained after the oil is extracted from soya bean. The protein content in soya bean meal is 65% M.P. soya bean processing plants are well equipped with modern processing technology, testing facilities and material handling systems. The combination of all these results into production of quality soya bean meal DOC, which has the inherent higher protein compare to other soya bean meal .M.P. Producing the soya bean meal, which have good growth potential in the domestic consumption and have high demanding export market? The soya bean mean
Gravity
has its users in the poultry and livestock industry (12 lake tones), dairy, cattle feed (1.2 lake tons) & aqua feed segment. The demand for soya bean meal in the poultry and cattle feed segment is growing consistently in the recent years. (http://www.sopa.org dated 26th March 2011 at 5.38pm) Export Scenario of Leather in Madhya Pradesh The Leather Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country. With an annual turnover of over US$ 7 billion, the export of leather and leather products increased manifold over the past decades and touched US$ 3.40 billion in 2009-10, recording a cumulative annual growth rate of about 5.43% (5 years).The Leather industry is bestowed with an affluence of raw materials as India is endowed with 21% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries. The leather industry is an employment intensive sector, providing job to about 2.5 million people, mostly from the weaker sections of the society. Women employment is predominant in leather products sector with about 30% share. Though India is the second largest producer of footwear and leather garments in the world, India accounts for a share of close to 3% in the global leather import trade of US$ 137 billion (2008). The major production centers for leather and leather products are located in Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul ; West Bengal Kolkata ; Uttar Pradesh Kanpur, Agra & Noida ; Madhya Pradesh Dewas ; Maharashtra Mumbai ; Punjab Jallandhar ; Karnataka Bangalore ; Andhra Pradesh - Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula and Karnal; Delhi Indian Leather Footwear Industry 131 | P a g e
India is the world's second largest producer of footwear; its production estimated over 700 million pairs per annum. At about US $ 300 million per year, footwear accounts for 18 percent share of total exports of leather exports. Various types of shoes produced and exported from India include dress shoes, casuals, moccasins, sports shoes, huaraches, sandals, ballerinas, and booties. Major production centres are Chennai (Madras), Delhi, Agra, Kanpur, Mumbai, Calcutta and Jallandhar. Indian Saddlers Industry India is one of the largest producers of saddler and harness goods in the world. The saddler industry was established in the 19th century primarily to cater to the needs of military and police. From then on initiatives were taken to develop, the industry and today there are over 150 units in the organized sector, out of which approximately 105 are 100% export oriented units. Kanpur, in the state of Uttar Pradesh, is a major production centre for saddler goods in India accounting for more than 95% of the total exports of saddler items from India. Kanpur, because of its specialization in tanning and finishing of buffalo hides is the only centre in the country where harness leather, which is major, input for saddler industry, is manufactured. Indian Leather Garments Industry The Leather Garment Industry occupies a place of prominence in the Indian leather sector. The product classification of leather garments comprise of jackets, long coats, waist coats, shirts, pant/short, children garments, motorbike jackets, aprons and industrial leather garments. Indian leather garments, which entered the world market only in the mid-eighties with exports of Rs. 15 crores in 1997-98, account for about Rs. 1530 crore in 1997-98. The major export destination of leather garments from India is Germany. In 1997,
Gravity
German imports of leather garments aggregated DM 1786 million of which DM 304 million worth of imports went from India. India, China and Turkey were the major suppliers of leather garments for the German market, as they accounted for about 78% of the market share. Major Markets: The major markets for Indian leather products are Germany with a share of 14.45%, UK 13.41%, Italy 11.72%, USA 8.71%, Hong Kong 7.35%, France 7.53%, Spain 6.43%, Netherlands 4.03%, Belgium 1.92%, U.A.E.2.03% and Australia 1.58% These 11 countries together accounts for nearly 79.16% of Indias total leather products export. Indian Leather Exports Some important Facts & Figures
India is the largest livestock holding country - 21% large animals and 11% small animals
A source for 10% world leather requirement About 2.50 million workforce (30% women) Annual production value is over U$ 4 billion Annual export value is over U$ 2 billion Export growth CAGR 8.20% (2000-04) Promising technology inflow and FDI High priority to occupational safety and work environment Compliance to environmental standards
133 | P a g e
Immense potential for future growth (domestic as well as export) ( World Statistics, ITC, Geneva India's export, DGCI & Shttp://www.indiaexports.com/leather.htmlDated 01 April, 2011 at 7:00pm,http://www.leatherindia.org/Dated 01 April, 2011 at 7:30pm).
Export Scenario of Textile in Madhya Pradesh The industrial history of M.P. dates back to the later part of 19th Century when in 1866, a cotton textile unit was established by the then Maharaja Holkars Indore. It had the pride of owning some of the largest mills of yester-years like the Hukumchand Mills, Bhandari Mills, JC mills etc.The textiles of Madhya Pradesh are a part of the rich heritage of India. The weaving, printing and coloring of textiles of Madhya Pradesh have been influenced by the bordering States of Orissa, Gujarat, Maharashtra, Rajasthan and Uttar Pradesh. Hand block printing is one of the important crafts of Madhya Pradesh. The Malwa and Nimar regions are renowned for their hand blockprinted cotton textiles. The art of tying and dyeing fabric is known as Bandhanior Bandhejin Madhya Pradesh. Mandsaur produces excellent bandhanis. The craftsmen of Ujjain& Indore produce exquisite samples of tie and dye. Textile Infrastructure in MP One of the highest cotton producing State in India 14.50 lac bales of production in 2009-10 Countrys 6% cotton produced in MP More than 55 Textile mills in the State Textiles exports from Madhya Pradesh worth US$325 million per annum Rich tradition of weaving and knitting
Gravity
Madhya Pradesh contributes approximately 6% of the total cotton yarn produced in the Country. Sixty textile mills already exist in Madhya Pradesh, out of which 20 mills are composite, 6 units are weaving and 12 of them are export oriented units. The installed capacity of spindles in Spinning Mills in the State as on early 2010 is 15, 11,000.Present Textile exports from Madhya Pradesh are approx. `1800 crore per annum.Pratibha Syntex, STI Phoenix, Maral Overseas is major players in apparel manufacturing. State has approximately 43290 power looms and 47000 handlooms at present. State produces approximately 20 lakh bales of cotton every year. Burhanpur, Chanderi, Maheshwar and various other parts of Malwa region are renowned textile clusters which are best known for quality cotton weaving and fabrics. Textiles mills in the State are producing world class Denim and export quality apparels. Largest producer of staple fibre-yarn is in the State at Nagda. Indore and Jabalpur are renowned ready-made garment and apparel clusters in the State. One textile park is proposed in district Chhindwara under SITP Scheme. Two apparel parks one each at Indore and Jabalpur are proposed to be established. An Apparel Park for integrated textile units is being built up within the SEZ in Indore. This will have State of the Art Common Effluent Treatment Plant (CETP).Separately a ready-made garment complex is being developed in Pardesipura in Indore. A ready-made garment Complex is coming up in Jabalpur. Textile specific ITIs are being developed on PPP mode. (GLOBAL INVESTOR MEET-II) and (- www.texmin.nic.in , IBEF Dated:- 30th March 2011 at 6:18 pm). LITERATURE REVIEW Literature review of Soya In the early 1970s, prices of edible oil on the domestic market rose sharply. Beginning in 1976/77, India had to increase the import of edible oil and from 1977/78 to 1987/88, imports constituted about 30 percent of the total availability of edible oils in the 135 | P a g e
country. Between 1981/82 and 1987/88, India imported on average 1377 million tons of edible oil, which corresponded to about 44 percent of the domestic production of edible oil. At this time soybean cultivation was being launched in India. (N.K. Mishra October-December, 2004) soybean has grown in importance and is next only to groundnut in terms of the output of oilseeds in India. With an annual production of around 6-7 million tons, soybeans constitutes about 25% of total oilseed production of the country in 2004. Between 1981 and 2004, the output of soybeans grew at about 10% per annum although the growth seems to be tapering off in the last 4-5 years. The de trended series is remarkably stable with its coefficient of variation around 8%. Soybean production is concentrated in the state of Madhya Pradesh that accounts for nearly 75% of the countrys output. The crop year is October-September and 60% of the crop marketings occur in the period from November January. Soybean prices exhibit a typical pattern of seasonality where the low price occurs in the harvest months of October-November after which prices rise till June when they level off. (Bharat Rama Swami, Jatinder Bir, May, 2007) India is one of the major exporters of soy meal to the Asian countries and in 2008-09 , India is estimated that the production, export and domestic consumption of soy meal was about 5955, 3750 and 2212 MT. South Korea, Thailand, Philippines, Japan are some of the major importers of soy meal from the country. India, does not import soy meal to meet the requirements of the domestic feed industry, as the price equation inclusive of transports does not work in favour of imports. Soy oil imports accounts for approximately 37%. It is estimated that the total production, imports and domestic consumption in 2008-09 was around 1335, 900 and 2230 Million tons, respectively. (Dilip Reddy, July, 2008)In India Madhya Pradesh, Maharashtra, Rajasthan and Andhra Pradesh are the major producers of soybeans. Madhya Pradesh tops the list. Nearly 88% of soybean is produced in the state. During 1997-98 total soybean production in the state was 49.19 metric tons which was about 84.2% of the total
Gravity
produce. The protein content in soya bean meal is 65% M.P. soya bean processing plants are well equipped with modern processing technology, testing facilities and material handling systems. The combination of all these results into production of quality soya bean meal DOC, which has the inherent higher protein compare to other soya bean Meal. (The Soybean Processor Association of India Report 2010) Those getting 10 percent of their energy from black soya had gained half as much weight as those in the control group. Total blood cholesterol fell by 25 percent and LDL (the so-called 'bad') hole sterol fell by 60 percent in the rats in the 10 percent group, the study published in the in the journal of the Science of Food and Agriculture showed.(IANS/India news 2010)Two of Indias first agricultural universities, in the states of Uttar Pradesh and Madhya Pradesh, working closely with soybean specialists for the University of Illinois, are developing modern, scientific soybean production and utilization programs. Outstanding varieties and excellent results are soon achieved. Within 1-2 years it is clearly realized that soybean production has great potential in India. But there is, as yet, almost no market for the soybeans which are produced. (Soya Info Centre Report, 2010)
Literature review of Leather

Export growth in India has been much faster than GDP growth over the past few decades (Kishore Sharma, 2000).Diversification of export is a high priority area in the governments development strategy. It is increasingly recognized that accelerated development and diversification of countrys exports is needed for easing the pressure on balance of payment situation and for the growth of more viable and efficient agricultural and industrial sectors for balanced development (Economic Policy Paper on Export Diversification Tools, 2004) Indian leather industry has massive potential for generating employment and achieving high export-oriented growth. However, the on-going global economic slowdown and the wide erratic behavior of the overall 137 | P a g e
weather condition particularly in the Europe pose both threat (of market loss) and opportunity (to gain some unanticipated demand in the market) before it. On the other hand, its economic performance has not been assessed much till date (Anup Kumar Bhandari, March2010). India has the largest number of livestock, an abundant supply of cheap and skilled labour and an ever-increasing demand for leather goods. Inspite of all these factors the Indian leather goods industry has barely 2.5% of the global market share (Anamika Singh, 2003). The past years Foreign Trade Policy identified leather and leather products as a thrust sector for export promotion because of its significant export prospects coupled with employment generation. The policy goal is to double the share in the world export by 2008-09. With the Indian share in the global exports at 2.5 percent in 2003-04 and the world export growing at a CAGR of 4.0 percent, to achieve the 5 percent share in the world export in 2008-09, our export must grow at a CAGR of 19.3 percent. The share of domestic sales in the value of leather production in 2003-04 is estimated at 43 percent. If we assume a CAGR in the domestic demand of 6.0 percent, then the value of production in 2008-09 must be 91.2 percent(Growth prospects for exports of Indian Leather and leather products: What needs to be done?,2004) .In 2004-05, the industry recorded a satisfactory 5.8% export growth to reach a level of US$ 2.3 billion. Although, leather exports have increased in absolute terms, its share in total exports have declined in percentage terms from a high of 7.99% in 1990-91 to 2.89% in 200405(EXIM bank, 2006). The scope for export of Indian leather products especially leather goods, leather garments, saddler & harness is pretty good as there is no significant manufacturing base. Tanneries can tie-up for regular supply of cow hides or setting up tanneries for processing of leather up to wet blue stage for finishing in India (council for leather export2007). The leather industry occupies a place of prominence in the Indian economy in view of its massive potential for employment, growth and exports (Anup Kumar Bhandari, March 2010). The structure of the Indian leather
Gravity
industry is quite interesting. It is spread in different segments namely tanning and finishing, footwear and footwear components, leather garments, leather goods including saddler and harness etc (Anup Kumar Bhandari, March 2010). Leather Industry occupies a significant place in Indian economy in view of its great potential for growth, export and employment. It has been declared as a thrust sector and Govt. is taking pro-active role in boosting its export. Main features of Leather Sector in India are enumerated below. Leather sector of India is endowed with abundant supply of skilled work-force, huge raw material base as India ranks first among the major livestock holding countries. It is one of Indias top export earners (D GHOSH, ASST. DIRECTOR (L/F) & CLUSTER DEVELOPMENT EXECUTIVE, 2006). Accelerated growth through efficiency improvements in India, especially in their high-tech industries, will intensify competition in global markets leading to contraction of the manufacturing sectors in many countries. Improvement in the range and quality of exports from China and India has the potential to create substantial growth (Betina Dimaranan Elena Ianchovichina Will Martinr, August2007). The global leather industry is valued at about US$ 85 billion. Most of the producing countries are developing countries like India, while developed markets such as the US are major consumers of leather products. The industry is buyer-driven, with producing countries manufacturing in line with specifications, guidelines and technical advice provided by the buyer countries. China and Italy are the leading producing and exporting nations in the world with exports worth US$ 19 billion and US$ 13 billion respectively. India, with an output of US$ 4 billion and exports of US$ 2.4 billion, is placed third. The industry provides employment to about 2.5 million people, of which 30 per cent are women (IBEF, 2007). The leather industry is one the oldest industries known to mankind. Because of the economical and environmental issues the leather industry pushed into scientifically based approach and should be ready for the new technological 139 | P a g e
developments (Gonca Telli Yamamoto, Bekir Yilmaz, and Eser Eke Bayramoglu and zgr _ekero_lu, May2010). Indias role in world trade and Indias export performance have been relatively neglected areas in recent research. Even less well understood is the performance of large Indian firms and their role in overseas markets (Abhijit Sharma and Michael Dietrich May 2004).
Literature review of Textile

The state has around 1,800 companies and 19 industrial growth centres, which are close to major cities. This makes good social infrastructure accessible to industrial units. There are around 171,000 SSI units that contribute significantly to the economy. These companies not only meet local requirements, but also export a variety of products and services .A large number of cotton textile mills are clustered around Indore, Ujjain and Burhanpur. Major textile players are Bhilwaras, Indo-Rama, Bhaskar, Oswals, Parasrampuria, Maikal and S Kumars. The state government has also created Apparel Parks to support the industry.(IBEF_Madhya Pradesh_130608). Domestic demand accounts for most Indian cotton consumption; growth in textiles and clothing exports is outpacing domestic demand and is an increasingly important determinant of overall cotton and fiber demand in India. Cotton-based exports accounted for about 42 percent of mill use of cotton in 2000 and about 80 percent of the growth in Indian consumption of cotton fiber between 1992 and 2000. (Maurice Landes, Stephen MacDonald, Santosh K. Singh, and Thomas Vollrath, 2005) Textiles and garments make up the second fastest-growing product category of global exports, second only to office and telecommunications equipment; both sectors are central to the process of global integration (GATT, 1994). (Vijaya Ramachandran, 2005)The Indian textile industry holds a lot of significance for the country in terms of output, investment and employment. It constitutes 14% of the industrial production, 4% of GPD and 17% of its export earnings. The industry consists of organized mills as
Gravity
well as unorganized small scale enterprises. The organized mill sector consists of composite (InFocus-October 20 2010.)More than 50% of the export earnings come from garments which are almost entirely made up from cotton fabrics. Of the 243 Lakh bales produced during 2005-06 season, 46 lakh bales have been exported. Of the 270 lakh bales and above production expected during present season, more than 50 lakh. (Dr. R.P.Nachane 2010)
OBJECTIVE OF THE STUDY

To explore the export potential of the Madhya Pradesh for the top three industrial sectors of Soya, Leather and Textile
RESEARCH METHODOLOGY
Type of the study: The study is an empirical one where export performance are being tested to prove the potential of exports from the Madhya Pradeshs top sectors Soya, leather and textile. It is a study to know the export potential of different product from Madhya Pradesh to various countries. The study is exploratory in nature and it is essential to analyze the potential outside India. Importance of Exploratory StudyFor establishing priorities for further research and Gathering information about the practical problems for carrying out research on particular conjectural statements Type of data and data sourcesData required for the present study is secondary in nature. The yearly export reports of the Madhya Pradesh state have been used. The data were gathered from various
141 | P a g e
websites such as, www. commerce.nic.in, www.soya.org.in,www.councilofleatherindia.com,www.texmin.in Tools for the analysis Statistical Tool: Trend Analysis (Least Square Method) was applied to predict the trend of the export figures. (Formula enclosed) ANALYSIS AND INTERPRETATION 1. Soya It has been observed that the export grew from the year 2006 of Rs 1364.01 Crores to 2010 of Rs 2889.96 crores. There is the consistency in the growth has been observed. The expected export value in the year 2011 is Rs.3579.44 Crores. The percentage growth expected from the year 2010 to the 2011 is 23.86%.This growth is appreciable and it follows the past five years growth. (Table 1) 2. LeatherIt has been observed that the export grew from the year 2006 of Rs 170.15 Crores to 2010 of Rs. 204.99 crores. There is the consistency in the growth has been observed. The expected export value in the year 2011 is Rs. 225.96 Crores. The percentage growth expected from the year 2010 to the 2011 is 10.23% .This growth is appreciable and it follows the past five years growth. (Table 1) 3. Textile
Gravity
It has been observed that the export grew from the year 2006 of Rs.50.83 Crores to 2010 of Rs 78.01 Crores. There is the consistency in the growth has been observed. The expected export value in the year 2011 is Rs.159.16 Crores. The percentage growth expected from the year 2010 to the 2011 is 104.02 %.This growth is appreciable and it follows the past five years growth. (Table 1) CONCLUSIONS AND DISCUSSION The contribution to the total export of the India is 75.06% (PIE CHART 01) from the state of Madhya Pradesh which can be further increased and the state may become the leading contributor to the nation. The strengths of the state lies in skilled manpower, favourable soil and climate, government support, centrally located, low set-up costs (land, building etc), easy availability of manpower, low operating cost and supportive labour unions. The result of the study shows that there is a remarkable growth potential in the sectors of Soya, Leather and Textile in the state of Madhya Pradesh. If the government policies invite and motivate Foreign Direct Investments (FDI) in the sector we may predict that the growth can be exponential and may by pass the trends which has been predicted. IMPLICATIONS Every study should be of some benefit to the people living in the society, without its implication to the readers as well as the users of the study should derive some application. The study would have implication for the following groups:
143 | P a g e
For Exporters from India: - This study will help them to find out export potential in Madhya Pradesh. It will also help them to know the current situation of export industry and the export potential lies in the sectors like Soya, Leather and Textile. For Researchers: - The study being exploratory in nature highlights the areas where researchers can carry out further studies to understand export industry. For Government: - This research study is helpful to government bodies as it would help them to identify the sectors in which exporters should be given some incentives so that the export can be increased and in which sectors Foreign Direct Investments can be made available. For Students: - This study is also useful for the students who want to explore the Madhya Pradesh market. This report would provide a good stepping stone to carry out their study. SCOPE AND LIMITATIONS OF THE RESEARCH 1. The yearly data were taken for last five years i.e. 2005 to 2010.
2. Findings are applicable in the situations which prevailed during the five calendar years ending on year 2010; hence, these should be read in the light of prevailing situations in the economy. SCOPE FOR FURTHER RESEARCH Research can be further conducted and statistical tool correlation can be applied to test the different correlation between Soya, Leather and Textile .Also all the sectors who are exporting from Madhya Pradesh can be studied with their correlation. Further, sector, industry and product wise, country wise research can also be conducted.
Gravity
BIBLIOGRAPHY A. P. Gandhi (2008). Production of soy nuts using hazard analysis critical control point (HACCP). ISSN 1906-3040 Abhijit Sharma,and Michael Dietrich.(2004) The Indian Economy Since Liberalization: the Structure and Composition of Exports and Industrial Transformation (1980 2000). SERP Number: 2004004, JEL codes: F14, L6 Adam Brinker, Joe Parcell, Chris Boessen(2008). An Assessment of the India Soy Protein Market. Anamika Singh.(2003).Strategies for Enhancing the Competitiveness of Leather Industry in India. Anup Kumar Bhandari.(2010) Global crises, environmental volatility and expansion of the Indian Leather industry. JEL Classification No: D24, L67, R38. Betina Dimaranan, Elena Ianchovichina and Will Martin.(2007).China, India, and the Future of the World Economy: Fierce Competition or Shared Growth?. JEL: F11, F12, F43, WPS4304 Bharat Ramaswami, Jatinder Bir Singh(2007). Hedging and the Emergence of Commodity Futures: The Soya Oil Exchange in India. JEL classification: G13; Q13. Chandra,P.(2004).Competitiveness of Indian textile & garment industry:Some perspectives. Gonca Telli Yamamoto, Bekir Yilmaz, Eser Eke Bayramoglu2 and zgr _ekero_lu.(2010).An analysis and a solution for the existence of Turkish leather industry. ISSN 1993-8233 Growth prospects for exports of Indian Leather and leather products: What needs to be done?.(2004) Kishor Sharma.(2000). Export growth in India: Has FDI played a role? JEL Classification Codes: F1, F13, F14 and F21. 145 | P a g e
Maurice Landes, Stephen MacDonald, Santosh K. Singh, and Thomas Vollrath (2005).Growth Prospects for Indias Cotton and Textile Industries.United states department of griculture,CWS-05d01.
WEBLIOGRAPHY
www.indiastat.com/membership.aspx Visited on March, 15th 2011. www.texmin.nic.in Visited on March, 19th 2011. www.synthetictextiles.org Visited on March, 21th 2011. www.fiber2fashion.com Visited on March, 15th 2011. www.apparelindia.com Visited on March, 17th 2011. www.commercemin.nic.in Visited on March, 18th 2011. www.cmai.info.com Visited on March, 14th 2011. www.srtepc.nic.in Visited on March, 21th 2011. www.pdexcil.org Visited on March, 19th 2011. www.khoj.com Visited on March, 21th 2011. www.iasoyabean.com Visited on March, 26th 2011. www.soyatec.com Visited on March, 22th 2011. www.fciweb.nic.in Visited on March, 15th 2011. http://dspace.iimk.ac.in/bitstream/2259/442/1/79-86+.pdf Visited on March, 22nd 2011.
Gravity
http://agmarknet.nic.in/octdec2004.pdf Visited on March, 15th 2011. http://www.isid.ac.in/~bharat/Doc/JBsingh_rfm.pdf Visited on March, 28th 2011. http://etd.uasd.edu/ft/th9669.pdf Visited on March, 18th 2011. http://www.sopa.org Visited on March, 20th 2011. http://www.indiaenews.com/pdf/40945.pdf Visited on March, 27th 2011. www.ajofai.info Visited on March, 23th 2011. http://ageconsearch.umn.edu/bitstream/6796/2/sp08br07.pdf Visited on March, 30th 2011. http://www.dhakachamber.com/cipe/EPPs%20&%20Studies/Export%20diversification%20tools.pdf Visited on April.1st 2011. http://www.mse.ac.in/trade/pdf/Growth%20Prospects.pdf Visited on March,21st 2011. http://www.eximbankindia.com/leather.pdf Visited on March,27th 2011 http://www.dsir.gov.in/reports/techexp/reports1.pdf Visited on April,3rd 2011. www.ers.usda.gov Visited on March,25th 2011. www.dhunbank.com/pdf/reports/infocus-october%2020%202010.pdf Visited on April,29th 2011. www.ibef.org Visited on April,5th 2011. www.careratings.com Visited on March,24th 2011.
147 | P a g e
Annexure:
1. Formula for the linear square method(Trend Analysis)
= No. of years
a & b = Constant y = Forecast value (Trend)
Gravity
2. Department of Commerce Department of Commerce Export Import Data Bank Export:: Commodity-wise 2 digit level Dated: 9/4/2011 Values in Rs. Lakhs * ITC HS Code of the Commodity is either dropped or re-allocated from April 2003
S. No. HS Code
Commodity OIL SEEDS AND OLEA. FRUITS; MISC. GRAINS, SEEDS AND FRUIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER.
2005-2006
%Share
2006-2007
HS Code digit level %Share %Growth option
12
12
186,546.61
0.4087
241,254.04
0.4219
29.33
468
41
41
42
42
RAW HIDES AND SKINS (OTHER THAN FURSKINS) AND LEATHER 285,131.38 ARTICLES OF LEATHER, SADDLERY AND HARNESS; TRAVEL GOODS, HANDBAGS AND SIMILAR CONT.ARTICLES OF ANIMAL GUT(OTHR THN 536,811.59 FURSKINS AND ARTIFICIAL FUR, MANUFACTURES THEREOF. 48.95 SILK 173,742.38 COTTON. TOTAL
0.6247
335,817.68
0.5873
17.78
468
1.1761
550,219.56
0.9623
2.5
468
43 50 52
43 50 52
0.0001 0.3807
79.43 175,312.13
0.0001 0.3066
62.28 0.9 34.39
468 468 468
1,321,222.47 2.8948 1,775,550.54 3.1053 2503503.38 3078233.38
Dated:9/4/2011 Values in Rs. Lakhs 149 | P a g e
* ITC HS Code of the Commodity is either dropped or re-allocated from April 2003
HS Code digit %Growt level %Share h option
S. No. HS Code
Commodity OIL SEEDS AND OLEA. FRUITS; MISC. GRAINS, SEEDS AND FRUIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER. RAW HIDES AND SKINS (OTHER THAN ARTICLES OF LEATHER,SADDLERY AND HARNESS;TRAVEL GOODS, HANDBAGS AND SIMILAR CONT.ARTICLES OF ANIMAL GUT(OTHR THN SILK-WRM)GUT. FURSKINS AND ARTIFICIAL FUR, SILK COTTON. TOTAL
2006-2007
%Share
2007-2008
12 41
12 41
241,254.04 335,817.68
0.4219 0.5873
360,422.49 338,330.58
0.5495 0.5159
49.4 0.75
468 468
42 43 50 52
42 43 50 52
550,219.56 79.43 175,312.13 1,775,550.54 3078233.38
0.9623 0.0001 0.3066 3.1053
570,481.23 94.49 139,386.36 2,071,430.08 3480145.23
0.8698 0.0001 0.2125 3.1583
3.68 18.96 -20.49 16.66
468 468 468 468
Gravity
Department of Commerce Export Import Data Bank Export :: Commodity-wise 2 digit level Dated: 9/4/2011 Values in Rs. Lakhs * ITC HS Code of the Commodity is either dropped or re-allocated from April 2003
HS Code digit %Growt level h option
S. No.
HS Code
Commodity
2007-2008
%Share
2008-2009
%Share
12
12
OIL SEEDS AND OLEA. FRUITS; MISC. GRAINS, SEEDS AND FRUIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER.
360,422.49
0.5495
399,524.20
0.4752
10.85
468
41
41
RAW HIDES AND SKINS (OTHER THAN FURSKINS) AND LEATHER
338,330.58
0.5159
333,632.87
0.3968
-1.39
468
42
42
ARTICLES OF LEATHER,SADDLERY AND HARNESS;TRAVEL GOODS, HANDBAGS AND SIMILAR CONT.ARTICLES OF ANIMAL GUT(OTHR THN SILK-WRM)GUT.
570,481.23
0.8698
729,698.89
0.8679
27.91
468
43 50 52
43 50 52
FURSKINS AND ARTIFICIAL FUR, MANUFACTURES THEREOF. SILK COTTON. TOTAL
94.49 139,386.36 2,071,430.08 3480145.23
0.0001 0.2125 3.1583
104.95 152,205.12 1,422,430.57 3037596.6
0.0001 0.181 1.6918
11.06 9.2 -31.33
468 468 468
151 | P a g e
Department of Commerce Export Import Data Bank Export :: Commodity-wise 2 digit level Values in Rs. Lakhs * ITC HS Code of the Commodity is either dropped or re-allocated from April 2003
S. No.
HS Code
Commodity OIL SEEDS AND OLEA. FRUITS; MISC. GRAINS, SEEDS AND FRUIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER.
2009-2010
2010-2011(Apr%Share Sep) %Share
HS Code digit level %Growth option
12
12
394,858.09
0.467
215,980.69
0.4464
468
41
41
RAW HIDES AND SKINS (OTHER THAN FURSKINS) AND LEATHER ARTICLES OF LEATHER, SADDLERY AND HARNESS; TRAVEL GOODS, HANDBAGS AND SIMILAR CONT.ARTICLES OF ANIMAL GUT(OTHR THN SILKWRM)GUT.
304,303.31
0.3599
189,482.44
0.3916
468
42
42
681,161.98
0.8056
333,919.03
0.6901
468
43
43 50 52
FURSKINS AND ARTIFICIAL FUR, MANUFACTURES THEREOF. SILK COTTON. TOTAL
48.6 131,922.78 2,162,296.47 3674591.23
0.0001 0.156 2.5573
24.5 67,600.94 1,012,715.64 1819723.24
0.0001 0.1397 2.093
468 468 468
52
Gravity
2Graphical representation of export trend (exported and predicted)
Madhya P's Total Export value*of particular sectors in Rs. (In Crores.) Export Sector Soya Leather Textile 2005-2006
1,364.01
2006-2007
1,765.74
2007-2008
2,637.93
2008-2009
2,924.12
2009-2010
2,889.96
170.15 50.83
184.31 66.33
189.06 75.17
221.2 53.54
204.99 78.01
Table no.1: Actual exported value
Madhya Pradeshs Expected Export value*of particular sectors in Rs. (In Crores.) Export Sector Soya Leather Textile 2010-2011
3,579.44
2011-2012
4,000.70
2012-2013
4,421.50
2013-2014
4,842.53
2014-2015
5,266.26
225.96 159.16
236.58 190.66
247.24 222.08
257.9 253.54
268.56 285
Table no.2 Predicted export value
153 | P a g e
6,000.00 5,000.00 4,000.00 3,000.00 2,000.00 1,000.00 0.00 1 2 3
Soya
10
300 250 200 150 100 50 0 1 2 3
Leather
10
Gravity
300 250 200 150 100
Textile
50
0 1 2 3 4 5 6 7 8 9 10
155 | P a g e
Chapter Ten
Factors Affecting Selection of Mobile Brands
Nidhi Sharma Assistant Professor, Prestige Institute of Management and Research, Indore| Sunil Chichra, Student Prestige Institute of Management and Research, Indore| Anshumaan Bakshi, Student Prestige Institute of Management and Research, Indore | Raj Kumar Ranjan StudentPrestige Institute of Management and Research, Indore
ABSTRACT:
Mobile phone is an electronic device used to make telephone calls across a wide geographic area. Mobile phone is defined as a handheld phone with a built in antenna that transmits signals through the air without any physical connection. They have become an important aspect of living in the 21st century. Majority of adults already own a mobile phone and the minimum age for operating a mobile phone is reducing every year. Consumers are constantly looking for the best possible network, plan and handset. So many people closely analyze every aspect of their mobile phone. Over 1 billion cell phones are sold annually in the country. Today the market is flooded with different types of mobile phones. Marketing managers have sleepless nights to explore the diverse factors behind the purchase decision of a particular mobile phone brand. The present study focuses on finding out the factors which affect the selection of mobile phones brands. The study is exploratory in nature and a self designed structured questionnaire is used to survey the mobile phone users in Indore city. The results are analyzed with the help of suitable statistical tools and then interpreted to give valuable suggestions. INTRODUCTION: India is one of the fastest growing mobile markets in the world and that brings immense mobile marketing opportunities for branded consumer companies. According to a newspaper article in DNA on Sept 22, 2009, there were around 441 million wireless users in India by the end of August, 2009. It is now the 2nd largest subscriber market in the world. Mobile as a medium is gaining popularity with cheaper multimedia handsets getting into the mix. Page | 156
Gravity
A mobile phone or mobile (also called cellphone and hand phone) is an electronic device used for mobile telecommunications (mobile telephony, text messaging or data transmission) over a cellular network of specialized base stations known as cell sites. Mobile phones differ from cordless telephones, which only offer telephony service within a limited range, e.g. within a home or an office, through a fixed line and a base station owned by the subscriber and also from satellite phones and radio telephones. Mobile phone is a smart communication media. It is not a one-way communication like pager. Cellular communication basically gives the power of an advanced telephone system card. Cellular communication works like the radio set which is normally used. The handset or Mobile Phone is in fact an own private radio transmitter and receiver, very similar to the Walkie-talkies used by Police and Security Personnel. The key difference is that a cellular phone network is connected to the fixed line or conventional telephone system allowing additional access to the telephone world. Mobile Phone can be used to make and receive STD and ISD calls. Now e-mailing message is also possible. Some cellular phones have the capacity to send and receive faxes and data when attached to a personal computer. The Indian market is flooded with mobile phones manufactured by diverse brands. They are offering diverse features, services and other attractive offers to the customers. Mobile phones have changed the way we communicate; they have also spawned new forms of bad behavior. Mobile phone is a fashion statement for some and a must have tool to others, it attracts the Youth, it attracts the Old, it is truly a magnificent devices to have/own, it takes pictures, it records videos, it plays music, it performs video calling, it sends e mails on the move.
157 | P a g e
Factors Affecting Selection of Mobile Brands Literature Review Whitworth Brain, Yang Chieh Chun and Jones Beatrix mention that the rapid evolution of the mobile phone has produced a proliferation of models and features. Selecting a mobile phone is now a complex multi- Criteria problem. The authors found that the customers may find online decision support useful. So 105 mobile phone models with 59 technical features were organized by external features like color, and perceived criteria like reliability. The study simulated three forms of online support. Significant differences were found between the support types and the features and criteria used, with some gender differences. The results suggest that web-based support systems can increase customer satisfaction with mobile phone selection process. Wei R. and Leung L (2000) suggested that Mobile phones are powerful technologies that do more than mobile telephony with features like multi-media messaging, e-mail, web-browsing, TV streaming, fax and navigational maps. These developments match the rapid growth of mobile phone use, e.g. while in 1999 only 34% of young people owned mobile phones by 2002 this percentage was 90%. Isiklar g. and Buyukozkan G. (2005) researched that the side-effect of rapid growth has been a proliferation of phone models as manufacturers worldwide compete with some features quite technical in nature, like Bluetooth, TFT LCD, WAP and MMS. Choosing a mobile phone has become a complex multi-criteria decision problem. Davis D.F. (1996) ; Venkatesh V. (1996) ; Whitworth B. (2008) ; Sylla C. (2008) studied that Selecting a mobile phone is a form of technology acceptance. The authors used the Technology Acceptance Model (TAM), with traditional TAM criteria expanded by Web of System Performance (WOSP) criteria like security, functionality, connectivity, privacy, usability and reliability. The scenario envisioned is computer-
Gravity
based support for technology selection; criteria that derive from definable product features are needed. (Figure 1. Technology selection framework)
External Features
Perceived Criteria
Functionality Connectivity Usability Security Reliability Flexibility
Behavioral Intention
Actual Usage
Privacy Wilska A.T. (2004); Katz E.J. (2005); Sugiyama S. (2005) and Fortunati L. (2005) suggest that while young people prefer cell phones that are trendy or fashionable, and mostly students agree that fashion is important when selecting a mobile phone. The authors have given a model where customers form perceptions of criteria like usability from the products external features, which then affect the decision to buy. It distinguishes the external features of the phone, and the perceived criteria deduced from those features. There is evidence that users are more concerned with user-related criteria like functionality and ease of use than product-related features like size and color. Gi oug, Oh (2006); Dooyeon, Kim (2006) and Sungyul, Rhew (2006) surveyed that commercial activities based on information technology have used electronic data
159 | P a g e
Factors Affecting Selection of Mobile Brands interchange between computers, but with the development of Internet technology, they evolved into e-commerce. In the 1990s, mobile commerce was recognized as a part of e-commerce. With the increase of mobile devices, the use of mobile commerce, which accesses and use desired information at any time while moving (Anywhere, Anytime), was popularized. In the late 1990s, over 3.5 million devices were used, but entering the 2000s, the number exceeded a trillion. The market size also has already gone beyond 200 trillion won in 2004. Jones Beatrix , Whitworth Brian and Yang Chieh Chun mentioned that the Top Factor in selecting a mobile phone is the capability, flexibility, and usability with connectivity the least important. Again there were gender differences, with males significantly more concerned with capability, connectivity and usability than females. Both genders saw reliability as the most important criteria. Arshad Rehan Saeed Aitzaz researched that the role of corporate branding in mobile phone telecommunication along with different influencing factors involved in the purchase of mobile telephone connections. It investigates the relative importance of the corporate branding to the customers in mobile phone telecommunication industry while making purchase decision. The finding of this study provided useful information which is helpful not only for the students but also for the brand managers of mobile telecom operators that how they can improve their companys strategic position for longer period of time through corporate branding to trigger more customers and for a good brand. According to Rossi Matti: Helsinki School of Economics, Demand and usage of mobile phones might increase, if there were more utility services available. For instance, in some Finnish cities, both public and private dental clinics send a SMS to inform a customer about new possible appointments. Also libraries may send a notification about a reserved book that is ready to be collected.
Gravity
White, Jules; Schmidt C. Doulas studied the increasing popularity and abundance of mobile and embedded devices is bringing the promise of pervasive computing closer to reality. A recent trend in mobile devices that makes pervasive computing more realistic is the proliferation of services that allow mobile devices to download software on-demand. Mobile phones, for example, can now access web based applications, such as Google mail, or download custom applications from services, such as Verizons Get It Now. Google delivers both a web-based interface to Google mail and an application that can be downloaded to a mobile phone.
Research Methodology
The present study is empirical in nature and tows to explore the factors affecting the selection of mobile phones. Data for the study was collected through a self- designed structured questionnaire. The sample of the study constituted of 124 respondents from various management colleges of Indore city. The analysis of collected Data was done by statistical Package for social sciences (SPSS11.0) And MS Excel 2007. Item total correlation and factor analysis were used to analyze the data. It was assessed with the use of Crombach Alpha. Crombach Alpha allows us to measure the reliability of different variables. As a general rule, a coefficient greater than or equal to 0.7 is considered acceptable and is a good indicator of reliability. The Crombach Alpha for Questionnaire is 0.75. Hence it is reliable and can be used for analysis. Results and Findings The factor analysis was carried on 15 significant items that resulted into 5 factors that influences the purchasing pattern of mobile phones. The factors are tabularized with their items in annexure 1. The discussion of each factor is as follows: EFFECTIVE PROMOTIONAL ACTIVITIES has evolved as the first dimension it consists of 6 items that are providing accessories and gifts to customers (0.709), active 161 | P a g e
Factors Affecting Selection of Mobile Brands advertising (0.646), and Touch screen technology (0.640), after sales services (0.580), status symbol (0.530) and mobile phone as a fashion statement (0.160). Total load is 2.222 with 14.813% of variance. PERFORMANCE: This factor comprised of 2 items namely mobile phone brand with good battery backup (0.708) and multimedia features (0.608). The total load is 2.147 and 14.313 % of variance. VALUE FOR MONEY has consists 3 items which is Shape of Mobile (0.706), Price (0.615) and Brand of the mobile phone (0.567). Total load is1.762 with 11.746% of variance. NETWORKING comprises 2 items i.e. CDMA & GSM (0.842) and Internet Services (0.509). Total load is 1.639 and 10.927% of variance. CONVENIENCE has single Item i.e. easy availability of mobile phone in the market (0.772) it has total load of 1.171 and 7.809 5of variance
Conclusion
Finally we would like to conclude that five major factors play a significant role when the buyers think of purchasing a mobile phone. The most important factor is promotional activities that persuade the most in selection of mobile phones. Mobile phone also acts as a status symbol and it act as a fashion statement. Performance of the mobile phone like battery backup, advanced multimedia features enhances its popularity. E.g., Apple I-Phone have low battery backup thats why people dont prefer to buy that, people easily buy Nokia mobiles because they have very good battery backup. In India, people look for the Value of their Money. So whether the mobile phone handset is reasonably priced or priced high, it must provide value to the customer. Good Networking also affect the selection of mobile phones as nowadays
Gravity
many youngsters want to operate social networking sites through their mobile phones. Convenience that is the availability of mobile phones in the nearby markets is the least important factor given by our respondents.
Suggestions
The study aimed is to understand the diverse factors that consumers look for while selecting a Mobile Phone. Marketing managers are having sleepless nights to discover what will make a particular mobile phone brand more preferred by the buyers as compared to the others. On the basis of the results a few suggestions are mentioned below: 1. The marketing managers must focus more on the promotional activities like advertising their mobile phones through different media like Television, internet etc to increase their awareness, providing accessories, gifts occasionally, and providing better after sales services to enhance the sales. 2. For Youth, more emphasis can be given in the upcoming promotional media like social networking sites where they spend majority of their time. 3. The elderly are an often neglected group in product development and marketing, but they are the only growing age group in most developed societies. So some mobile phones must be creates with features catering to the needs of elderly people.
REFERENCES
Whitworth, Brian ; Yang Chieh Chun and Jones,Beatrix : Web Based Decision Support For Mobile Phone Selection
163 | P a g e
Factors Affecting Selection of Mobile Brands Leung, L., Wei, R., 2000, More than just talk on the move: Uses and gratifications of the cellular phone, Journalism and Mass Communication Quarterly vol. 77, pp. 308-320. Isiklar g. and Buyukozkan G. (2005) "Using a multi-criteria decision making approach to evaluate mobile phone alternatives," Computer Standards & Interfaces 29, pp.265-274 B. Whitworth, V. Bauls, C. Sylla, and E. Mahinda, (2008) "Expanding the Criteria for Evaluating Socio-Technical Software," IEEE Transaction on Systems Man & Cybernetics, Part A. T. A. Wilska (2005), "Mobile Phone Use as Part of Young People's Consumption Styles," Journal of Consumer Policy, vol. 26, pp. 441-463, (2004); L. Fortunati, "Mobile phones and fashion in postmodernity," Telektronikk, vol. 4, pp. 35-48. Whitworth Brian ; Yang Chieh Chun ; Jones Beatrix :web based Decision Support for Mobile Phone Selection Kurvilla Jose Shelja, Dmello Larrisa, Pandey Ajay (2010): M- marketing: An Empirical Study on Factors Affecting the Acceptance of Mobile Marketing Managing in the New World order, pp. 468484. Lawrence Elaine ; Pernici Barbara ; and Krogstie John(2004) : Mobile Information System MMA Team (2007). Introduction Of Mobile Coupons, Mobile Marketing Application, Version 3 Gi oug, Oh ; Dooyeon, Kim and Sungyul, Rhew (2006) : Selection Of the Success Factors Of Mobile Commerce and Evaluation Using AHP : IJCSNS International Journal of Computer Science and Network Security, VOL.6 No.7B, pp(127 134) Rossi, Matti ; Tuunainen Kristiina Virpi : Helsinki School Of Economics : Factors Affecting the Adoption and Use of Mobile Devices and Services By Elderly People
Gravity
White, Jules and Schmidt, C.Doulas : Automating Product Line Variant Selection For Mobile Devices : Vanderbilt University,Department of Electrical Engineering and Computer Science Email:{jules, schmidt}@dre.vanderbilt.edu Bouwman, Harry ; Carlsson, Christer ; Walden, Pirkko ; Castillo, Molina Jose Franscisco (2010) : Factor Affecting the present and future Use Of Mobile Data Services : (www.inderscience.com) Rahman, Sabbir ;Haque, Ahasanul and Ahmad, Mohd Ismail Sayyed Ahmad (2010) : Exploring Influencing Factors For the Selection Of Mobile Phone Service Providers : African Journal of Business Management Vol.4 (13), pp. 2885-2898
165 | P a g e
Chapter Eleven Scrutinizing the Brunt of Economic Growth on CO2 Emissions in India
Manish Joshi, Assistant Professor Prestige Institute of Management and Research, Indore| Divya Sharma, StudentPrestige Institute of Management and Research, Indore | Shweta Ghanshani, StudentPrestige Institute of Management and Research, Indore | Harshita Kankane, StudentPrestige Institute of Management and Research, Indore
Abstract: Emerging economies currently face a very difficult target of controlling their environment in general and climate change in particular. Many national and international discussions and deliberations are being held across the world to discuss the effects of climate change, but it is well understood that the greed for economic growth and casual approach towards environment has lead to the problem of emissions. GDP has been referred to as an important representative factor of economic growth, it is thus sometimes even referred to as a synonym for economic growth. The research conducted shall be confined to India and would enquire the causal relationship of CO2 emissions and GDP of the country, to do so, econometric analysis has been applied to regress a model portraying current status and develop a possible model where CO2 emissions can be controlled while letting the GDP grow.
Introduction:
The rush for rapid economic growth led by industrialization in emerging economies like India is having a negative impact on the ecological management. It is evident that rapidly growing economies are causing severe pollution problems in the form of Page | 166
Gravity emissions of various forms of gases like the CO2. The higher emissions in these countries are a resultant of higher energy consumption. Higher rate of growth of population, rapid industrialization, industrial trade, increase in number of vehicles as a result of a very high economic growth are acting as major driving forces towards higher energy consumption. The economic growth exhibited in the countries like India is exuberant. The higher growth levels have placed such economies in the different League of Nations altogether. China and India together contributed worlds 30% of GDP in US $ constant PPP in 2002-03 (World Bank, 2004). The GDP of India between 1950 and 1980 was around 3% and annual growth of per capita income was just 1.5%. For a country like India which is worlds second largest populous nation, this growth rate was found to be inadequate to make any significant impact on overall progress of the nation. Some initiation was taken up during the 1980s by the government of India to set things right. Though they were half hearted, it improved the per capita income growth to 3.0% as poverty levels fell from over 45% to 35% by the end of 1980. Thus, India realized that only strong economic growth rate could increase the per capita income levels of the people which in turn help in bringing down the poverty levels and improve the socioeconomic conditions of the poor. This further encouraged the government to make some serious corrections in its economic policies. Thus, the foundation for a strong economic growth was laid in the form of economic reforms in 1991 which is popularly known as Structural Adjustment Program (SAP). This program was a result of a closed economic policy which India followed over the decades which resulted in a severe macroeconomic crisis by early 1990s. The reforms focused on strengthening the economic growth which should translate into reduction of poverty levels, improving poor socio-economic conditions and better standard of living for the people of India. The reforms started yielding results by mid-1990s as India posted a growth rate of over 7% for three consecutive years followed by a low growth rate which was a result of worldwide recession. On the other hand, the governments kept changing, but the reforms program continued. Page | 167
Analysis Potential of Internet Advertising on College going Youth of Indore City
More reforms brought a much higher growth rate and this was evident during the early 2000 as the growth rate for the first seven years of 2000 was over 7.5% per annum. Thus, many argue that the higher growth rate is the only panacea for the ills poor socio economic conditions prevailing in the developing countries. But the rapid growth in industry, industrial trade and transportation sector is driving the economy. This being so, on the other hand another set of experts speak against this rapid rate of growth which emerging economies are exhibiting. They opine that there are environmental costs and damages associated with rapid economic growth which results in expanding of economic activities. This ever increasing consumption demand would have global side effects such as high emissions leading to global warming, greenhouse effects and destruction of forests. Added to the above, the environmental degradation can also add to the problems of imposing higher costs on the poor by increasing the expenditure of health related issues. According to UN report, worlds poorest 20% of population take this burden which is a resultant of environment degradation. It is also said to have responsible for worlds 80% of the diseases due to pollution in the form of water, air and land due to rapid industrialization (United Nations Report, 1998). The problem associated in the case of India, China and Brazil is that these nations are in the stage of rapid industrialization. This stage is a resultant of high economic growth led by change in the structure of economic activities, higher industrial exports, lower industrial imports, higher production and industrial activity and high rate of growth in population. This is better explained by the Environmental Kuznet Curve (EKC).
Gravity
The Environmental Kuznets Curve (EKC) hypothesis states that pollution levels increase as the country develops, but begin to decrease as rising incomes pass beyond a turning point. This is reflected as inverted-U curve, expressing the relationship between pollution levels and income. Exhibit 1 better explains this scenario. This hypothesis was first proposed by Grossman and Krueger in 1992, and restated by them again in 1995.As seen from exhibit 1, there are many forces which are driving the relationship between environment degradation and economic growth. The upward movement of the curve captures the developing countries that move from agriculturally based economy to industrialization phase. In the next phase, the economy transforms into developed economy and then starts the downward movement of the curve with a shift towards services growth, increase in imports of industrial goods and stabilization of growth rates. Indias in the first phase where experiencing the structural shifts from agriculture to industrial growth. The share of agriculture for India has considerably declined from over 80% in 1950s to around 25% by 2007. During the same period of time the levels of energy consumption and CO2 emissions have also drastically increased in these economies, exhibiting a relationship between economic growth led by industrialization and environment degradation.
Page | 169
Thus it brings us to a point where a realisation has been achieved where some relationship exists between economic growth and carbon emission. It is important to describe the relationship and generate a pragmatic solution to the problem. Review of Literature: The role of industries is specified in the study by Low and Yeats, (1992) who show that pollution intensive industries accounts for a large share of exports from some developing countries. They also found a reversal trend for developed economies. Kolstad and Krautkraemer (1993) point out the fact that there is a dynamic link between the environment, resource use and economic activity. They argue that while resource use (especially energy sources) yield immediate economic benefits, its negative impact on the environment may be observed in the long run. Selecting the period of 1971-1991, Tucker, (1995) looked at changes in CO2 versus income in yearly cross-sectional analyses. The study found that the changes in CO2 emissions are clearly related to changes in oil prices, but does not incorporate them into the analysis. The study by Jean Agras & Duane Chapman, (1998), takes into account the price of energy. This study highlights the importance of prices and then includes it in an econometric EKC framework testing energy-income and CO2-income relationships. These long-run price-income models find that income is no longer the most relevant indicator of environmental quality or energy demand. In a study by Suri & Chapman, (1998), examined the sources of commercial energy consumption, which is the root cause of serious environmental problems. It was found in the study that while both industrializing and industrialized countries have added to their energy requirements by exporting manufactured goods, the growth has been substantially higher in the former. At the same time, industrialized countries have been able to reduce their energy requirements by importing manufactured goods. The Exports of manufactured goods by industrialized countries has thus been an important factor in generating the
Gravity upward sloping portion of the EKC and imports by industrialized countries have contributed to downward slope. Joy O Kadnar, (2004) in his research based on the energy consumption patterns, a model to predict the future short-term fossil fuel energy needs, using the relationship between consumption, population growth and real gross domestic. product (GDP) for two situations (zero or no growth and a 5% sustained economic growth), was developed for Central Asian economies and obtained mixed results. In a study conducted by Wietze Lise & Kees Van Montfort, (2006), tries to unfold the linkage between energy consumption and GDP by undertaking a co integration analysis for Turkey with annual data over the period 19702003. The analysis shows that energy consumption and GDP are co integrated. This means that there is a (possibly bidirectional) causality relationship between the two.
The study organized Ugur Soytas and Ramazan Sari, (2007) investigates the long run Granger causality relationship between economic growth, CO2 emissions and energy consumption in Turkey, controlling for gross fixed capital formation and labor. The most interesting result obtained in the study is that carbon emissions seem to Granger cause energy consumption, but the reverse is not true. The lack of a long run causal link between income and emissions may be implying that to reduce carbon emissions, Turkey does not have to forgo economic growth. When it comes to similar studies by Antonio Focacci (2005), which proposes an empirical analysis concerning the environmental and energy policies in Brazil, China and India. The study includes ratio analysis using two key ratios namely, emission intensity ratio and energy-intensity ratio to relate to EKC model. The study results show mixed results with respect to application of Environmental
Page | 171
Kuznets Curve model for these three economies. It shows that resulting trends in these three countries are different from the other developing countries. All the research studies suggest that the ever increasing Objectives:
The objectives of the research are as follows: 1. To study the related literature to develop a conceptual framework. 2. To study the Impact of Economic Growth on the carbon emission levels. Hypothesis: Ho: The major hypothesis of the research is that GDP growth has impact on CO2 emissions in India. Research Methodology: The research is descriptive in nature and is forming a positive frame work. Data used is secondary and has been purchased from CMIE via NASDOC, New Delhi. To assess the movement and impact regression with enter method has been applied. The data has been tested for Durban- Watson test also to affirm the use of regression. Results: Upon calculating correlation between the variables using Karl Pearsons coefficient of correlation the values
The value of r came out to be +0.80 which is highly correlated and show interrelation among the variables. This means that with the rapid industrialisation and growth in per capita income the carbon emissions are also
Gravity growing. This is sometimes evident from the fact that automobile market of India is currently one of the biggest markets and Industrial growth of India just second to china which is also facing the same issues. Upon the application of Durbin Watson test:
The value of d came to be 2(approximately), Here T is the number of observations. Since d is approximately equal to 2(1-r), where r is the sample autocorrelation of the residuals, d = 2 indicates no autocorrelation. The value of d always lies between 0 and 4. If the DurbinWatson statistic is substantially less than 2, there is evidence of positive serial correlation. As a rough rule of thumb, if DurbinWatson is less than 1.0, there may be cause for alarm. Small values of d indicate successive error terms are, on average, close in value to one another, or positively correlated. If d > 2 successive error terms are, on average, much different in value to one another, i.e., negatively correlated. In regressions, this can imply an underestimation of the level of statistical significance, the value of d is satisfactory and it is reliable to conduct regression On the applying regression by enter method
The model thus generated is:
Percentage Change in Carbon Emissions Per Capita= 0.02+0.22* Percentage Change In GDP
Conclusions:
Page | 173
The high correlation among variables shows that GDP and CO2 emissions are moving hand to hand. It also means that the EKC hypothesis to a very large extent can be accepted. This is very alarming and India might have to face serious repercussions. It is very urgent to develop a control over the proposed variables. The model suggested is very preliminary and an advanced model keeping into mind various other variables should be developed. Similar studies in china showed similar results and delay in action has caused china serious ecological issues in some of its provinces. This could cause more pressure to environment of the country which would ultimately put impact on agriculture which happens to be the main work generation sector and major contributor to the economy. References: Low, P., Yeats, A., 1992. Do dirty industries migrate? In: Low, P. (Ed.), International Trade and the Environment. World Bank Discussion Papers No. 159, Washington, DC. Tucker, M., 1995. Carbon dioxide emissions & global GDP. Ecol. Econ. 15 (3), 21523. Jean Agras & Duane Chapman, 1998, A dynamic approach to the Environmental Kuznets Curve Hypothesis, Ecological Economics 28 (1999) 267277. Suri, V., Chapman, D., 1998. Economic Growth, Trade and Energy: Implications for the Environmental Kuznets Curve. Ecological Economics, Special Issue on the Environmental Kuznets Curve, 25 (1998) 195208. Joy O Kadnar, 1998, The Central Asian Republics Economic Growth and Fossil Fuel Shor t-term Needs Forecast, Business Brefings: The Oil & Gas Review, 2004, 1-5. Wietze Lise & Kees Van Montfort, 2006, Energy consumption and GDP in Turkey: Is there a Cointegration relationship?, Energy Economics August (2006), pp. 1 13. Ugur Soytas & Ramazan Sari, 2007, Energy Consumption, Economic Growth, and Carbon Emissions: Challenges Faced by an EU Candidate Member, MARC Working Paper Series Working Paper No. 2007-02
Gravity Focacci, Antonio. (2005), Empirical analysis of the environmental and energy policies in some developing countries using widely employed macroeconomic indicators: the cases of Brazil, China and India, Energy Policy 33, pp. 543554 Annexure:
Model Summary Model 1 a b R 0.80 R Square 0.09 Adjusted R Square 0.06 Std. Error of Durbinthe Estimate 0.02 Watson 2.06
Predictors: (Constant), VAR00001 Dependent VAR00002

Unstandardized Coefficients Standardized t Coefficients Std. Error Beta Sig.
Variable:
Model
(Constant) Percentage Change In GDP
0.02 0.22
0.01 0.13 0.30
2.24 1.68
0.03 0.10
Page | 175
Year 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Percentage Change in GDP 13.51% 7.95% 8.12% 6.19% 5.71% 4.88% 4.89% 9.61% 8.52% 7.43% 3.59% 4.69% 5.12% 6.32% 7.50% 7.57% 10.24% 4.59% 2.97% 4.88% 4.45% 4.50% 7.39% 9.13% 10.89% 11.54% 11.45% 7.15% 5.13% 9.13% 0.532875 0.55412 0.588454 0.595916 0.640483 0.672 0.702536 0.742778 0.795647 0.812242 0.850805 0.886922 0.90471 0.943788 0.986176 1.055489 1.080439 1.090464 1.14458 1.167109 1.165026 1.16893 1.20337 1.24615 1.288137 1.354389 1.432309 1.486428 1.548901 1.611374
Percentage Change in CO2 Emissions 0.05 0.04 0.06 0.01 0.07 0.05 0.04 0.05 0.07 0.02 0.05 0.04 0.02 0.04 0.04 0.07 0.02 0.01 0.05 0.02 0.00 0.00 0.03 0.03 0.03 0.05 0.05 0.04 0.04 0.04
Chapter Twelve Analysis Potential of Internet Advertising on College going Youth of Indore City
Nidhi Sharma Assistant Professor, Prestige Institute of Management and Research, Indore| Gaurav Singh Chouhan Student Prestige Institute of Management and Research, Indore| Shesh Raman Sharma, Student Prestige Institute of Management and Research, Indore | Jashndeep Singh Bagga, Student Prestige Institute of Management and Research, Indore
Abstract:
As one of the fastest growing economies in the world, India presents a lucrative market to companies all over the globe. The Indian advertising industry has evolved from being a small scale business to a full-fledged industry. Rapid developments in the technology and growing base of empowered customers have redefined how advertising is created, sold, consumed and evaluated. Advertising on internet is emerging niche medium with some peculiar creative capabilities and constraints. India has got the highest youth population in the world. Its the youth who is tech savvy and is spending time on internet especially on the social networking sites. The purpose of the study is to analyse the potential of Internet Advertising on College going youth of Indore city. It is an empirical study where self structured questionnaires have been used to collect the primary data. The survey was conducted on 100 people falling in the age bracket of 17-22 years.
Introduction:
As being incorporated or associated with the marketing process, advertising finds its position in every organization. Advertising can be defined as another strategy as an approach towards competitive advantage. Various advertising concepts are in the
Page | 177
stream of the media and papers but still there is a little evidence that advertising can significantly help the organization boosts its performance. In terms of sales, it is true that the application of the marketing and its associate strategies can gain the consumers trust and loyalty, and in return, can enjoy the benefits of the market share. Advertising is the mechanism used to create a desire for different products in the minds of the customers. Jhally (1987) considers advertising is working to create a false need among the consumers and in fact such needs are of the manufacturers rather than the consumers. However this view is refuted by the advertising professionals by pointing out that the purpose of advertising is to inform the public about the availability of the products in the market. On the contrary Campbell (2000) the consumers do not merely act on the basis of advertising but use their discretion makes their decisions on a purposeful manner. Just like the consumption of material items, advertising has the ability to solve the problems being encountered by the consumers with respect to the products and it also guarantees the consumers that emotional happiness and well-being within the act of consumption (schlosser et al. 1999) The Internet as a marketing medium offers many unique challenges to marketers. To assist marketers in their venture on-line, comparisons and contrasts to existing marketing theory have been used to build a conceptual understanding of the current state of the Internet and its implications for consumer transactions (cf., Hoffman and Novak, 1996a; Hoffman, Novak and Chatterjee, 1995; Schlosser and Kanfer, forthcoming). Despite the limited understanding of how consumers judge Internet Advertising, there has been substantial commercial growth on the Internet of many forms of advertising, resulting in estimated revenue of $301 million, with a projected growth to $7.7 billion by 2002. Indeed, spending on IA totalled an estimated $129 million in the first quarter of 1997, with an estimated 92% increase in IA spending for top 25 industries during the first quarter of 1998. In addition to anticipating the
Gravity monetary growth of the Internet, the majority of on-line businesses believe the Internet is here to stay and will generate sales in the future.(Schlosser et al., 1999) According to consumers, Internet Advertising includes many forms of commercial contentfrom electronic advertisements that are similar to traditional advertisements (e.g., billboards, banner ads) to formats that are different from traditional advertisements, such as corporate Web sites (Ducoffe,1996). Most of the directresponse measures administered to consumers have assessed consumers perceptions and usage of the Internet and its services. Mehta and Shivdas in 1995 assessed Internet users attitudes toward advertising on newsgroups and through e-mail. The study revealed that consumers held negative attitudes toward newsgroup and e-mail advertising, even when the message was directly relevant to the special interests of the group. However, their sample was limited to those who posted messages to the group. Those who merely read messages were not included in the sample. As a result, it is possible that these unfavourable attitudes are due to this vocal samples perception that they are competing with electronic advertisements for the groups attention. In addition, attitudes toward newsgroup/ e-mail advertising may not generalize to all forms of Internet Advertising, including less intrusive ads (such as Web sites). Consequently, it is unclear whether the results would generalize to the entire Internet populations attitudes toward IA in its many forms. The interactive nature of Internet advertising is useful to advertisers only when consumers are willing to interact with an advertising message. Consumers willingness is often manifested by their search behaviour in terms of selection of certainicons, breadth and depth of search, and the amount of search time. Thanks to the multi-layer tree-like structure of Internet advertising, consumers can search product information easily and interactively.(Schlosser et al. 1999)
Page | 179
Online advertising is steadily seeing growth in India. Though broadband Internet penetration is growing at snails pace, Mobile internet figures are rising at breakneck speed, which augurs well for online advertising growth in India. Internet & Mobile Association in India (IAMAI), recently released a report which pegs text and display advertising growth at Rupees 993 crores in the financial year 2010-2011 from Rs 785 crores in the financial year 2009-2010. Online Display advertising grew at about 28 percent, while online text advertising registered 26 percent growth. It is interesting to note that display advertising is currently at growth stage in India, while globally display advertising growth is on a decline after hitting a peak few years earlier. It is quite surprising that pop-up and pop-under are still doing very well in India, whereas globally one rarely sees them. Mature Internet markets like U.S and UK are relying more on Video Ads and Social interactive kind of advertising models where ROI is more robust and leads are far more qualified.(Prabhudesai n.d.) Just four years from now Display advertising will be witnessing a sea-change Half of all theads that you will see will be Video Ads. This is one of the predictions that Google has made during the keynote address at the Interactive Advertising Bureaus MIXX Conference in New York, entitled Display 2015: Smart and Sexy. The rise of Social Media will also have great impact on the future of Online Display advertising Google predicts that 75 percent of all ads will contain some sort of social element in it. Google Predictions on Display Advertising in 2015 that 50 percent of ad campaigns will include video ads bought on a cost-per-view basis (that means that user will have choice whether to watch it or not).Today, advertisers are starting to deliver ads that are tailored to particular audiences. Many are using real-time bidding technology; so that they can bid on the ad space that they think is most valuable. In 2015, 50 percent of these ads will be bought using this real-time technology. Mobile is going be the
Gravity number one screen through which users engage with advertisers digital brands. By 2015, there will be five metrics that advertisers commonly regard as more important than the click. In 2015, 75 percent of ads on the web will be social in natureacross dozens of formats, sites and social communities. In 5 years time more than 50 percent ads will be in Rich media formats which currently stand at mere 6 percent of total display ad impressions. This will enable far greater creativity and interaction between users and advertisers. Display advertising will grow to a $50 billion industry in five years.(Prabhudesai 2010) Literature Review Advertisements today are considered as one of the best tool to reach the consumers. Business professionals try hard to beat the competition and meet their long term goals with the help of Advertising. The use of advertising within an organisation is interestingly growing and various researchers value its importance as an important factor that can influence the buying behaviour of the consumers. The researchers have tried to understand the role of advertising within the organisation and as part of the marketing. They have also tried to find the level of influence that the advertisements can create to manipulate or influence the buying behaviour of the consumers. The role of advertising changes unto what the organisation wants them to do. There were times that an organisation used the advertising to help them survive from the impact of economies trends, still the economies believe that advertising plays a significant role on the consumer behaviour. Anon (2011) Using a model adapted from the research of Pollay and Mittal (1993) which details the primary structure of beliefs and attitudes about advertising in general. It focuses on advertising messages delivered in an electronic marketplace. Thus, advertising attitudes have been defined herein as either macro-level societal beliefs about advertising, or micro-level personal beliefs about advertising. These dimensions are Page | 181
defined in the research by the following functions of Internet advertising: product information, social role and image, hedonic and pleasure, and good of advertising for the Internet economy. Internet users overall attitudes to advertising in general are also examined. The Internet originated as a communication channel, evolving from communication needs, where distributed computer networks provided the infrastructure to share information for work, or educational purposes. Nevertheless, electronic commerce emerged in the early 1990s, impacting on the previously free channels of communication on the Internet. Current Internet market research is dominated by online demographic research. However, given the increasing commercial push of Internet technologies, there have been limited research published detailing Internet users attitudes to commercial, or business activity. To date, research about the impact of new technology on marketing paradigms lacks a consumer-based perspective. The research undertaken in this study will begin to bridge this gap and investigate how Internet consumers perceive the practice of traditional commercial techniques in electronic media. In this research it was found that the information or the advertisements on the Internet provides the users about product information and keeps them up to date (60% users). According to this paper Internet advertising had a negative effect on the internet users. Only 20% of the users saw advertising as essential.(Previte n.d.) According to byeong Joon Moon The model that they prepared in their research which was consumer adoption to the internet as an information search and product purchase channel tried to understand the factors that influence consumers to adopt the internet instead of traditional channels for information search and product purchase. The authors reviewed previous established theories on consumer decision making in offline environments and research findings regarding consumer decision making in online environment. The authors embraced the contingent consumer decision making model provided by bettman et al. and classified the factors that
Gravity influence consumers to use online channels instead of traditional channels into three groups person, problem, and context.(Joon moon 2004) Josephine Previte in their empirical research has tried to explore internet consumers attitude to the rise of commercialisation and specifically, the increase in advertising on the internet. Their paper investigates consumers attitudes to commercialisation of the internet, and specifically focuses on internet users belief and attitudes about internet advertising. Is there a relationship between internet advertising consumers attitudes to advertising on the internet and their online experience with new technology? The major findings from the research identified the existence of relationships between attitudes towards advertising and online experience. Internet users with one year or less experience (newer users) have a less negative attitude to advertising on the Internet than users with four or more years experience (older users).Differences are apparent between new and older users on issues concerning advertisings function and role in providing product information, social role and image of advertising, and like or dislike of Internet advertising. Internet users have strong negative attitudes toward advertising in general and the societal effects of advertising, in particular.(Previte n.d.) According to Ann E. Schlosser, Sharon Shavitt and Alaina Kanfer, despite the lack of consistency across reports of the Internet populations demographic profile, there appears to be consensus that the Internet population is predominantly male, young, well educated, and affluent. Such demographic characteristics also appear to affect attitudes toward advertising. That is, previous research has demonstrated that gender, age, education and income impact consumers judgments of and beliefs about advertising. For instance, according to a recent survey, better-educated, wealthier consumers hold less favourable attitudes toward advertising than less-educated, lower-income consumers do. Based on demographics alone, this would suggest that the Internet population would judge advertising (in general and on the Internet) relatively unfavourably. In order to gauge whether attitudes toward IA can be Page | 183
attributed to the unique demographic profile of Internet users rather than advertising on the Internet. Internet advertising judgments has been compared to General Advertising judgments of a sample weighted to match the demographics of the Internet respondents. The results are due to the demographic composition of Internet users rather than how IA is uniquely perceived relative to traditional advertising. It is observed that Internet advertising may be rejected add times then General Advertising. (schlosser et al. 1999) Kenneth C.C. Yang has learned from various studies in the past that consumer motives affect how they will use media and media contents. The study by the authors explores effect of consumer motives on their search behaviour using internet advertising. The study employed a 2 by 2 between subjects factorial experiment design. A total of 120 subjects were assigned to an experiment condition that contains an internet advertisement varying by advertising appeals(i.e., rational v/s emotional) and product involvement levels (high vs. low). Consumer search behaviour (measured by the depth, breadth, total amount of search), demographics, and motives were collected by post experiment questionnaires. Because all three dependent variable measuring search behaviour were conceptually related to each other, MANCOVA procedures were employed to examine the moderating effects of consumer motives on the dependent variables in four product involvement advertising appeal conditions. Results indicated that main effects for product involvements and advertising appeals were statically significant. Univariate ANOVA also showed that advertising appeals and product involvement levels influenced the total amount of search. Three way interactions among advertising appeal, product involvement levels, and information motive were also statistically significant results indicated that consumer motives influenced their total amount of search using the test advertisements.(Yang 2004) For the majority of people exposure to advertising is as normal as breathing, eating or sleeping. It is a bit like living near a main road eventually you learn to block out the
Gravity noise. The same applies to advertising except that it is not only noise, but a constant visual reminder of how we should look, feel and live. For example we are now exposed to an estimated 3500 advertising images a day. We tend to block out the majority of images because they become background noise but they still have an impact on us (zoubkov, et al 2004)Electronic media has catapulted advertising and consumerism to new levels, and the explosion of the internet brings a threat of further advertisements over exposure. From pollution, to loss of local culture, to a surge in mental health issues, advertisements and consumerism have laid a path of destructions for humankind. Business and the mass media will not stop using sophisticated psychological advertising; the question is; will humankind be able to survive.(Robertson 2008) The Indian advertising industry is in a phase of transition. Rapid advances in technology and an ever growing base empowered customer have redefined how advertising is created, sold, consumed and evaluated. At this juncture advertisers are experimenting with a number of emerging platforms including internet which has been acknowledged as an interactive medium with a lot of advertising potential. Advertising on the internet offers many unique opportunities that are not possible with conventional media. It provides a better understanding of the consumers in a more realistic way so that the advertisers employ personalisation in their promotion campaign on individual basis. As a result, media planners include internet as the most preferable medium to reach target audience with the appealing messages. At present advertisement on the internet has become the most significant development within the industry. Internet advertising leads to active participation of consumers by sending a clear message to consumers. It also turns potential consumers into actual consumers by promoting materialism and stimulating consumer needs. The present study is an attempt to measure the impact of occupation on consumer demand of internet advertising. (Nagar et al. n.d.) Page | 185
Objectives of the Study:

1. To study the variables affecting Internet Advertising. 2. To develop a model for analysing the potential of Internet Advertising among College going Youth.
Research Methodology This Research has adapted questions to convey information about the Impact on Internet users of Advertising via Internet and its effect on their purchasing behaviour. A quantitative social survey approach is utilised and questionnaires have been distributed to students of few colleges in traditional paper format. The research type which is used is exploratory in nature .This genre of research simply allows the marketer or a researcher to gain a greater understanding of something that he/she doesnt know enough about. In the research we are trying to find out the potential of Internet Advertising on College Youth of Indore City. Primary data is collected through self-structured and close ended questionnaire. The sample of the study was constituted of 100 respondents from various management colleges of Indore city. Tool for data analysis The analysis of collected data was done by a software statistical package for social sciences (SPSS) version 17.0 for windows and MS excel 2010. We have
Gravity
used multiple regression method to analyse the hypothesis. We have tested the following hypotheses.
Ho: Potential for internet Advertising exists. Reliability of measures Reliability of the measures was assessed with the use of cronbach alpha. Cronbach alpha allows us to measure the reliability with different variables .as a general rule a coefficient greater than or equal to 0.7 is considered acceptable and is a good indicator of reliability. The cronbach alpha for the questionnaire is 0.78. Hence it is reliable and can be used for the analysis.
Findings: After applying multiple regression taking into consideration that CSE (Credible Sales Enhancement) is dependent. We found that R=.453 which is low but also show that the potential exists. On the application of Durbin-Watson test, we got a result of 1.74 which is very favourable and process our hypothesis that potential for internet advertising exists.
Page | 187
Model Summary
Mo del 1 a R 0.45347 R Squar e 0.205 636 Adjusted R Std. Error of the DurbinSquare Estimate Watson 0.126199 0.8841 1.739567 46 VAR00007,
Predictors: (Constant), VAR00011, VAR00005, VAR00006, VAR00004, VAR00001, VAR00008, VAR00003, VAR00002
Dependent Variable: VAR00009
ANOVA
Mode l Mean Square F 2.02345711 2.58 1 Regression 18.21111 9 8 9 9 0.78165428 Residual 70.34889 0 8 9 Total 88.56 9 Predictors: (Constant), VAR00011, VAR00005, VAR00006, VAR00007, VAR00004, VAR00001, VAR00008, VAR00003, VAR00002 Dependent Variable: VAR00009 df Sum of Squares
a b
Gravity
Residuals Statistics
Minimum Predicted Value Residual Std. Predicted Value Std. Residual a Std. Maximum Mean Deviation N 1.822127 3.976511 3.12 0.428894681 100 -1E-2.51813 2.064232 16 0.842967857 100 -3.02609 -2.8482 Dependent Variable: VAR00009 1.99702 2.334808 1E-16 1 100 -2E16 0.953462589 100
Page | 189
Unstandardized Coefficients
Standardized Coefficients
Sig.
Model
Std. Error
Beta
(Constant)
1.24
0.57
2.19
0.03
VAR00001
0.01
0.10
0.01
0.07
0.95
VAR00002
-0.03
0.12
-0.03
-0.30
0.80
VAR00003
0.28
0.11
0.29
2.55
0.01
VAR00004
-0.15
0.10
-0.16
-1.50
0.14
VAR00005
0.18
0.10
0.19
1.85
0.07
VAR00006
0.00
0.11
0.00
0.00
0.97
VAR00007
0.15
0.09
0.20
1.73
0.09
VAR00008
0.00
0.09
0.01
0.06
0.96
VAR00011
0.12
0.10
0.13
1.28
0.20
Dependent Variable: VAR00009
Gravity
The variable have good degree of explanation and the model is generated after the application of stepwise linear multiple regression.
CSE = 1.245 + 0.6596*v1 + (-0.312 * v2) + (0.281*v3) + (0.147*v4) + (0.182*v5) + (-0.396*v6) + (0 .151*v7) + (4.95*v8) + (0.122*v11)
Upon the examination of the model we find that var1 and var8 needs special focus while var2, var4 and var6 need controlled management decisions. Same way var3, var5, var7 and var11need an enhanced approach so as to achieve controllable and sustainable CSE since the objective of the advertising is to achieve credibility along with sales enhancement. Scope and limitations This report has taken into account the importance of internet as a method of advertising which has scope of further research. Marketers must focus on various different factors as discussed earlier to enhance the effectiveness of Internet advertising on the college going youth. The aim of the research was to analyse the potential of Internet Advertising on College going youth in Indore city. The limitation of the study is the model prepared is preliminary and quantitative. Hence indepth study is required for enhanced model that can be used for various managerial decisions. Conclusion To date, limited empirical research has been undertaken to explore the Internet consumers attitudes to the rise of commercialisation and specifically, the increase in Page | 191
advertising on the Internet. In this study various college going students have been surveyed to find out the potential of internet advertising. The study reveals that college going youth is not very attentive to the advertisements poping up on the internet. But at the same time, it implies that there is huge potential in this field and hence the marketing managers must exploit this opportunity to induce more creativity in the advertisements and make them more interesting and appealing to the youth. The model developed in this paper will be studied vigorously to produce an enhanced model that will provide both academic and practical benefits to the advertising industry, marketing academics and practitioners by contributing to a better understanding of the emerging digital consumer.
REFERENCES: Anon, Impact of advertising on consumer buying behaviour research proposal paper. Available at: http://www.essaythesis.net/2011/04/impact-of-advertisement-onconsumer.html. Prabhudesai, Arun, Indian Online Advertising market to grow at 26.5% BFSI Leads. Available at: http://trak.in/tags/business/2010/12/18/indian-online-advertisingmarket-growth/ [Accessed March 16, 2011]. Prabhudesai, Arun, 2010. online display advertising 2015: google predictions. Available at: http://trak.in/tags/business/2010/09/29/online-display-advertising-future/ [Accessed March 16, 2011]. Schlosser, Ann, Shavitt, Sharon & Kanfer, Alaina eds., 1999. survey of internet users attitude towards internet advertising. journal of interactivemarketing, vol. 13(3).
Gravity Anon, Impact of advertising on consumer buying behaviour research proposal paper. Available at: http://www.essaythesis.net/2011/04/impact-of-advertisement-onconsumer.html. Joon moon, beyong, 2004. Consumer adoption of the internet as an information search and product purchase channel : some research hypotheses. International journal marketing and advertisement, vol 1. Nagar, Nirupama, Jaroliya, Pragya and Jaroliya, Deepak, impact of occupation on consumer demand: a study of internet advertising. impact of occupation on consumer deamnd. Previte, Josephine, Internet Advertising : An advertisement of consumer attitudes to advertising on the internet. Robertson, Andrew, 2008. the impact of electronic media advertising on consumerism and cultural values. university of pheonix. Schlosser, Ann, Shavitt, Sharon & Kanfer, alaina eds., 1999. survey of internet users attitude towards internet advertising. journal of interactivemarketing, vol. 13(3). Yang, kenneth C.C., 2004. effect of consumer motives on search behaviour using internet advertising. Cyber pscholgy and behaviour, volume 7(4). Thornhill,A.,Saunders,M.,Lewis,P.(2007) Understanding Research Philosophies and Approaches, RESEARCH METHODS FOR BUSINESS STUDENTS ,Prentice Hall ,4 th edition,pp.138 148 Cooper, D., Schindler, P.(2006) Sampling, Business Research Methods, McGrawhill publishing, 9th edition, pp.402
Page | 193

Final Book 2011

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Final Book 2011

Загружено:

Авторское право:

Доступные форматы

Chapter One

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

The future is positive.

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

An Analysis of Indian Automobile Exports

Growth in Exports 80.00 60.00

An Analysis of Indian Automobile Exports

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

987498 1021013 943974 907350.08 883256.12 859162.16 835068.21

5193894 6207690 7112225 6752104.04 7292651.22 7833198.40 8373745.58

348437 379994 379987

6529829 7608697 8444168

16.13 9.32 10.9

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

3.02 3.79 5.66 6.15 8.22 3.78

1.93 3.28 4.3 5.34 6.22 7.68

4.44 6.45 7.26 8.2 11.36 9.89

2.44 3.54 4.71 5.61 6.74 7.33

Source: India Stat

An Analysis of Indian Automobile Exports

4500 4000 3500 3000 2500 2000 1500 1000 500 0

Market Growth Rates

IDENTIFICATI ON OF FREQUEN T VISITORS

CREATE A SEAMLESS ENVIRONMENT

INCREASE THE FOOTFALL & RETENTION OF OLD CONSUMERS

Reliability Statistics Cronbach's Alpha .674 N of Items 19

Extraction Method: Principal Component Analysis.

Extraction Method: Principal Component Analysis. a. 7 components extracted.

% 136 0 136 100.0 .0 100.0

35.316 3.391 44.043 2.631 51.605 1.616 58.469 1.132

Extraction Method: Principal Component Analysis.

Extraction Method: Principal Component Analysis. a. 4 components extracted.

A Descriptive Analysis of Indian Agriculture Exports

SEMI PROCESSED FOOD/ Ready to Cook

Source: Conceptualized by the authors

A Descriptive Analysis of Indian Agriculture Exports

A Descriptive Analysis of Indian Agriculture Exports

A Descriptive Analysis of Indian Agriculture Exports

A Descriptive Analysis of Indian Agriculture Exports

Time Series Modeler

A Descriptive Analysis of Indian Agriculture Exports

-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078

-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078

-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078

-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078

-4.180E-14 -4.180E-14 29.658 7.138 12.995 22.971 41.803 7.078

A Descriptive Analysis of Indian Agriculture Exports

Model Fit statistics Model

Number of Model Statistics DF Sig. Outliers

A Descriptive Analysis of Indian Agriculture Exports

Variables Model Entered

Variables Removed Method

a. All requested variables entered. b. Dependent Variable: World Model Summary

Std. Error of the Estimate

a. Predictors: (Constant), India

Variables Model Entered