SUSTAINABLE COMPETITIVE ADVANTAGE THROUGH INTEGRATED MARKETING APPROACH
Chief Editor Dr. S. S. Bhakar
Editors Dr. Rahul Pratap Singh Kaurav Mr. Pranshuman Parashar Dr. Shilpa Sankpal
Published by Prestige Institute of Management, Gwalior, MP, India And Bharti Publications, New Delhi, India
ii
Copyright © Prestige Institute of Management, Gwalior
All rights reserved, no part of this publication may be reproduced or transmitted, in any form or by any means, without permission. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages.
First Published, 2016 ISBN: 978-93-85000-42-3
Online Published in India:
Prestige Institute of Management Opp. Deen Dayal Nagar, Airport Road, Gwalior, MP - 474020, India And Bharti Publications 4819/24, 3rd Floor, Ansari Road, Darya Ganj New Delhi - 110002, India
iii
ACKNOWLEDGEMENTS
Gratitude is essential in executing any venture and it would be unfair to the great support that was received in planning, and organizing the seminar, and the fruit of this labour. The blessings of Dr. S. S. Pandey, Vice Chansellor, Vikram University, Ujjain and Dr. Sandeep Kulshresths, Director, Indian Institute of Tourism and Travel Management, Gwalior were most important to editors for completing the assignemt of the book. The editors are thankful to all the delegates who participated in the seminar by contributing their valuable research to the seminar theme. It is their energetic response that propelled the seminar to fruition. The editors would also like to thank the support of all the faculty members and staff of PIMG and those who directly or indirectly contributed towards the success of the event. The editors also want to pay special thanks to student volunteers of the event for making it a successful event. They were also helpful in final editing and formatting of the book. Editors would also like to express thanks to the publishers of this book for all mechanical support regarding designing aspects and obtaining ISBN number for the book.
iv
PREFACE World Business Council has defined Sustainable Business Management as “Meeting the needs of the present without compromising the ability of future generations to meet their own needs”. Word “sustainable” has been used in reference to the environment, regarding balance between use and regeneration of natural resources, pollution, waste, and energy use. It has been applied to human resources – both employees and customers – as well as local culture. Sustainable Business requires proper planning to ensure balanced management of financial, social and environmental resources. Sustainability has become a hot topic that is discussed in board rooms and in included in curriculum of all the top B-Schools of their MBA programs. Increasingly, firms are referencing sustainability in their communications, their strategic plans, and their annual reports. However, it is still not clear whether these efforts of corporate contribute significantly or are mere window dressings. The corporate will naturally be more serious about sustainable business practices if these practices provide them sustainable competitive advantage. No one will disagree that most of the objectives of sustainable business viz. reduction in pollution, waste, energy use etc. are desirable outcomes for society. Does that mean that sustainability is societal requirement in which businesses give back to society to offset their privilege of operation? Does it mean that sustainability requires corporate charity – a donation that is not desirable for the business organizations? Or, can sustainability be a basis for competitive advantage? The research papers presented in the seminar and included in this book discuss answers to all these questions. The research papers included in the book have highlighted the process of integrating sustainable business practice in their marketing strategy to obtain and retain their competitive advantage. Papers included in the book have highlighted the fact that the firms can use sustainable practices as bases for marketing strategy if sustainable practices are desired by consumers, and if they can be adopted differentially and defensibly. The current book is based on selected papers received and presented in the first National Marketing Seminar organized by Prestige Institute of Management on the theme “Sustainable Competitive Advantage through Integrated Marketing Approach”. Book has been divided into Six Sections. The first section explains how strategic marketing contribiutes to competitive advantage leading to sustainable competitive advantage for providing right directions to marketing efforts. The nine chapters are: Effect of management styles and employee
v
behavior on customer satisfaction in automobile industry; Factors affecting the sustainability of the management institutions in the current scenario; Determinants of collective action due to information problems and power asymmetries: A case with reference to WTO and its regulatory actions; Digital marketing strategies to gain competitive advantage in e-commerce; Product responsibility in a sustabinable competitive advantage through integrated marketing approach; Marketing budget – critical for business success; Use of technology in making transactions. The Second section of the book contains seven chapters on promotion and branding aspects of sustainbale competitive advantages leading to market leadership position for the organization. The chapters are: Impact of brand association on brand loyalty; “Information” leading factor changing consumer perception towards advertisement: A study on cosmetic products; Impact of celebrity endorsement on consumer: Buying behavior in Gwalior region; Attitude of consumers towards indoor and outdoor advertising – An empirical study; Study of advertisement on purchase behavior of youth; Expereintial branding: A tool for organizational development and success in market; Impact of advertisement on consumer buying behaviour with reference to laptop market in Gwalior region. The Third section contains six chapters on customer relationship management for developing and maintaining the sustainable competitive advantage. They are: An empirical approach on the changing attitude of consumer by using online communities in non-metro cities; Technological innovations in delivering customers services (A modern approach for sustainable banking in India); Customer engagement and acquisition -at mind over matter learning (An year-old startup by IIM-Ahmedabad Alumni); Social marketing and its effectiveness: A case study with Bandhan; A review paper on customer relationship management practices; Incorporating social media with CRM. The fourth section of the book includes six chapters on sales and retailing aspects, which provide right platform for sustainable competitveve advantage through operational effeciency. It highlights how innovative practices of sales and retailing helps in achieving higher service levels. They are: Influence of store environment on store image; A study of perceptions towards sales person job characterstics and job outcomes; Impact of visual merchandiseing on college students’ impulse buying behavior with reference to apparels; A study to uinderstand the factors influencing customer choice of organized retail store, Work-Family conflict among sales force; India: An analysis of online retail during 2008-2013.
vi
The Fifth section contains eleven chapters on application of consumer behavior for achieve sustainable competitive advantage. They are: Customer satisfaction is an outcome of service quality and corporate image in context of telecom sector in India; Mediating role of customer perceived value in service quality – customer satisfaction link: An empirical study of telecom sector in Gwalior region; Antecedents to consumers ethnocentrism: The case of cosmetics in Gwalio; Customer perception towards investment in post office schemes, Impact of service quality on visitor’s satisfaction: A study of hotel industry; Preceived risk, perceived benefit and their impact on intention to use: A study of internet banking users; Evaluating impact of demeographics on trust in perspective of online transaction; Factors influencing choice of students for selecting institute for managemrnt course: A study of Gwalior region students; The role of sensory attributes in organic product marketing; Consumer preference to Allahabad; Demographic study on adoption of internet banking in Gwalior. The Sixth section contains nine chapters on application of marketing to tourism destinations. This section discusses about how marketing is different in case of tourism destinations. The chapters are: Attractions of Gwalior as tourist destination: IPAas evaluation tool; NIRONA: Sustainable development through tourism multipliers; Study on attitude of the attendees of academic orientation professional development programmes towards travel and tourism; A case study of agri-tourism in India; Marketing the heritage and cultural of mystical 64 yogini shrine of Hirapur: A literature review and research agenda; Repositioning Jammu as a destination tourist destination: Prospects and challenges; Tourism policy play a significant role for safety and security of tourist – A case Study; Sustainable marketing: opportunities and challenges in Indian tourism industry; Use of internet in travel agency marketing.
vii
TABLE OF CONTENTS S. N.
Title and Authors
Pg
Section I: Strategic Marketing 1.
EFFECT OF MANAGEMENT STYLES AND EMPLOYEE BEHAVIOR ON CUSTOMER SATISFACTION IN AUTOMOBILE INDUSTRY
2
Prabhat Kumar Singh Kushwah, George Thomas and Rohit Kumar 2.
FACTORS AFFECTING THE SUSTAINABILITY OF THE MANAGEMENT INSTITUTIONS IN THE CURRENT SCENARIO
19
Dr. Tarika Singh, Manish Dubey, Rajat Arora and Jaison Mathew 3.
DETERIORATION OF COLLECTIVE ACTION DUE TO INFORMATION PROBLEMS AND POWER ASYMMETRIES: A CASE WITH REFERENCE TO WTO AND ITS REGULATORY ACTIONS
27
Dr. Deepika Singh Tomar 4.
DIGITAL MARKETING STRATEGIES TO GAIN COMPETITIVE ADVANTAGE IN E- COMMERCE
32
Sreekanth Narapareddy 5.
PRODUCT RESPONSIBILITY IN A SUSTAINABLE COMPETITIVE ENVIRONMENT-A MARKETING STRATEGY
45
Babita Kundu 6.
A REVIEW OF VALUE IN MARKETING LITERATURE
56
Dr. Shilpa Sankpal and Dr. Yogesh Upadhyay 7.
TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE THROUGH INTEGRATED MARKETING APPROACH
70 Anju Bharti
8.
MARKETING BUDGET – CRITICAL FOR BUSINESS SUCCESS
77
Dr. Reshma Rajani and Padmini Shukla 9.
USE OF TECHNOLOGY IN MAKING TRANSACTIONS Nitin Shrivastava, CK Dantre and Chinmay Dantre
viii
83
Section II: Promotion and Branding 10.
IMPACT OF BRAND ASSOCIATION ON BRAND LOYALTY
90
Dr. Shailja Bhakar, Abhay Dubey and Ankit Parashar 11.
“INFORMATION” LEADING FACTOR CHANGING CONSUMER PERCEPTION TOWARDS ADVERTISEMENT: A STUDY ON COSMETIC PRODUCTS
102
Rajat Agarwal and Deeksha Singhal 12.
IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER: BUYING BEHAVIOR IN GWALIOR REGION
111
Shaifali Chauhan, Dr. Subeer Banerjee and Dr. Richa Banerjee 13.
ATTITUDE OF CONSUMERS TOWARDS INDOOR AND OUTDOOR ADVERTISING- AN EMPIRICAL STUDY
120
Seema Lall and Shankha Mukherjee 14.
STUDY OF ADVERTISEMENT ON PURCHASING BEHAVIOR OF YOUTH
131
Archana Jadon, Shaifali Chauhan and Dr. Subeer Banerjee 15.
EXPERIENTIAL BRANDING: A TOOL FOR ORGANIZATION DEVELOPEMENT& SUCCESS IN MARKET
142
Dr. Narendra Parchure and Avinash Pawar 16.
IMPACT OF ADVERTISEMENT ON CONSUMER BUYING BEHAVIOUR WITH REFERENCE TO LAPTOP MARKET IN GWALIOR REGION
154
Shaifali Chauhan, Dr. Subeer Banerjee and Archana Jadon Section III: Customer Relationship Management 17.
AN EMPIRICAL APPROACH ON THE CHANGING ATTITUDE OF CONSUMERS BY USING ONLINE COMMUNITIES IN NON-METRO CITIES
163
Dr. Utkal Khandelwal and Deependra Singh 18.
TECHNOLOGICAL INNOVATIONS IN DELIVERING CUSTOMERS SERVICES (A MODERN APPROACH FOR SUSTAINABLE BANKING IN INDIA)
ix
173
Dr. Shalini Dubey and Kanika Verma 19.
CUSTOMER ENGAGEMENT AND ACQUISITION- AT MIND OVER MATTER LEARNING (AN YEAR-OLD STARTUP BY IIMAHMEDABAD ALUMNI)
183
Tavishi and Gitika Bhatia 20.
SOCIAL MARKETING AND ITS EFFECTIVENESS: A CASE STUDY WITH BANDHAN
199
Alok Kumar and Shapoorji Sukhobrishti 21.
A REVIEW PAPER ON CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES
206
Pukhraj Suman and Dr. Sanjay Gupta 22.
INCORPORATING SOCIAL MEDIA WITH CRM
219 Swikrati Singh
Section IV: Sales and Retailing 23.
INFLUENCE OF STORE ENVIRONMENT ON STORE IMAGE
225
Dr. Garima Mathur, Sakshi Bhedak and Anjali Tomar 24.
A STUDY OF PERCEPTIONS TOWARDS SALES PERSON JOB CHARACTERISTICS AND JOB OUTCOMES
232
Dr. Gaurav Jaiswal, Dr. Ravindra Pathak, Ram Paliwal, Prof. S. K. Singh 25.
IMPACT OF VISUAL MERCHANDISING ON COLLEGE STUDENTS’ 242 IMPULSE BUYING BEHAVIORWITH REFERENCE TO APPARELS Dr. Richa Banerjee and Ms. Priyanka Kushwah
26.
A STUDY TO UNDERSTAND THE FACTORS INFLUENCING CUSTOMER CHOICE OF ORGANIZED RETAIL STORE
249
Dr. Rohit Singh Tomar and Dr. Tripti Tripathi 27.
WORK-FAMILY CONFLICT AMONG SALES - FORCE
256
Dr. Elizabeth George 28.
INDIA: AN ANALYSIS OF ONLINE RETAIL DURING 2008-2013 Manisha Raj and Dr. Kavita Indapurkar
x
263
Section V: Consumer Behaviour 29.
CUSTOMER SATISFACTION IS AN OUTCOME OF SERVICE QUALITY AND CORPORATE IMAGE IN CONTEXT OF TELECOM SECTOR IN INDIA
275
Dr. Nischay K. Upamannyu, Chanda Gulati and Ritu Gangil 30.
MEDIATING ROLE OF CUSTOMER PERCEIVED VALUE IN SERVICE QUALITY – CUSTOMER SATISFACTION LINK: AN EMPIRICAL STUDY OF TELECOM SECTOR IN GWALIOR REGION
292
Dr. Anil K. Singh 31.
ANTECEDENTS TO CONSUMERS ETHNOCENTRISM: THE CASE OF COSMETICS IN GWALIOR
303
Dr. Ruturaj Baber, Dr. Rahul Pratap Singh Kaurav, Yamini Sapra and Prerana Baber 32.
CUSTOMER PERCEPTION TOWARDS INVESTMENT IN POST OFFICE SCHEMES
313
Dr. Vinod K. Bhatnagar, Dr. Navita Nathani and Vikash Kumar Singh 33.
IMPACT OF SERVICE QUALITY ON VISITOR’S SATISFACTION: A STUDY OF HOTEL INDUSTRY
323
Dr. Nandan Velankar, Disha Andani and Priyanka Jagtap 34.
PERCEIVED RISK, PERCEIVED BENEFIT AND THEIR IMPACT ON INTENTION TO USE: A STUDY OF INTERNET BANKING USERS
333
Rajshree Sharma, Prateek Pathak and Dr. Navita Nathani 35.
EVALUATING IMPACT OF DEMOGRAPHICS ON TRUST IN PERSPECTIVE OF ONLINE TRANSACTION
342
Pranshuman Parashar, Manish Kumar Singh, Chanda Gulati and Alka Chaturvedi 36.
FACTORS INFLUENCING CHOICE OF STUDENTS FOR SELECTING INSTITUTE FOR MANAGEMENT COURSE: A STUDY OF GWALIOR REGION STUDENTS Chandra Kant Dantre, Abhay Dubey, Dr. Amitabha Maheshwari, Pramod Kumar and Imran Khan
xi
353
37.
THE ROLE OF SENSORY ATTRIBUTES IN ORGANIC PRODUCT MARKETING
362
V. Vardhini and Dr. P. Raja 38.
CONSUMER PREFERENCE TOWARDS SMALL CARS WITH SPECIAL REFERENCE TO ALLAHABAD
367
Gonu and Rajani Kant Gupta 39.
DEMOGRAPHIC STUDY ON ADOPTION OF INTERNET BANKING IN GWALIOR
372
Mini Agrawal, Nidhi Agrawal and Dr. K. S. Thakur Section VI: Marketing of Tourism Destination 40.
ATTRACTIONS OF GWALIOR AS TOURIST DESTINATION: IPA AS EVALUATION TOOL
382
Dr. Rahul Pratap Singh Kaurav, Dr. Ruturaj Baber, U.N. Shukla, Monika Prakash and Prof. S. K. Singh 41.
NIRONA: SUSTAINABLE DEVELOPMENT THROUGH TOURISM MULTIPLIER
394
Dr. Ramesh C. Devrath and Aditya Ranjan 42.
STUDY ON ATTITUDE OF THE ATTENDEES OF ACADEMIC ORIENTED PROFESSIONAL DEVELOPMENT PROGRAMMES TOWARDS TRAVEL AND TOURISM
401
Sushma Maligi and Nandish Kumar 43.
A CASE STUDY OF AGRI-TOURISM IN INDIA
413
Lt (DR.) Saurabh Dixit, Mr. Amit Tiwari, Mr. C. S. Barua, Dr. Charu Sheela Yadav 44.
MARKETING THE HERITAGE AND CULTURE OF MYSTICAL 64 YOGINI SHRINE OF HIRAPUR: A LITERATURE REVIEW & RESEARCH AGENDA
427
Indrani Pradhan and Ankita Mishra 45.
REPOSITIONING JAMMU AS A DISTINCT TOURIST DESTINATION: PROSPECTS & CHALLENGES Tarun Vashishat
xii
435
46.
TOURISM POLICE PLAY ASIGNIFICANT ROLE FOR SAFETY & SECURITY OF TOURISTS - A CASE STUDY
443
Nandish Kumar and Sushma Maligi 47.
SUSTAINABLE MARKETING: OPPORTUNITIES AND CHALLENGES IN INDIAN TOURISM INDUSTRY
456
Ms. Nanita Tyagi and Ms. Deepa Shrivastava 48.
USE OF INTERNET IN TRAVEL AGENCY MARKETING (CONCEPT PAPER) Prateek Sapra
xiii
463
LIST OF CONTRIBUTORS Name Abhay Dubey Aditya Ranjan
Alka Chaturvedi Alok Kumar Amit Tiwari Amitabha Maheshwari Anil K. Singh Anjali Tomar Anju Bharti Ankit Parashar Ankita Mishra Archana Jadon Avinash Pawar Babita Kundu
C S Barua Chanda Gulati Chandrakant Dantre Charu Sheela Yadav Chinmay Dantre Deeksha Singhal Deepa Shrivastava Deependra Singh Deepika Singh Tomar Disha Andani
Affiliation Assistant Professor, Prestige Institute of Management, Gwalior Assistant Professor, University Institute of Tourism and Hospitality Management, Chandigarh University, Chandigarh Assistant Professor, Prestige Institute of Management, Gwalior The Institute of Company Secretaries of India Assistant Professor, IITM, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior HOD, Department of Management, Institute of Professional Studies, Gwalior Student, Prestige Institute of Management, Gwalior Assistant Professor, Maharaja Agrasen Institute of Management Studies, Rohini, Delhi Student, Prestige Institute of Management, Gwalior Research Scholar-IITTM, Noida Assistant Professor, Maharaja Institute of Management and Technology, Gwalior Assistant Professor, Symbiosis, Pune Senior Research Fellow, Department of Accountancy & Law, Faculty of Commerce, Dayalbagh Educational Institute, Agra Assistant Professor, IITM, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Assistant Professor, IITTM, Noida Student, Prestige Institute of Management, Gwalior Student, Prestige Institute of Management, Gwalior Assistant Professor, Indian Institute of Tourism and Travel Management, Noida MBA- Institute of Business Management, GLA University, Mathura Assistant Professsor, Amity University, Gwalior Research Scholar, Jiwaji University, Gwalior
xiv
Pg 90, 353 394
342 199 413 353 292 225 70 90 427 131, 154 142 45
413 275, 342 83, 353 413 83 102 456 163 27 323
Elizabeth George
Garima Mathur Gaurav Jaiswal George Thomas Gitika Bhatia Gonu Imran Khan Indrani Pradhan Jaison Mathew K S Thakur Kanika Verma
Kavita Indapurkar Lt (Dr.) Saurabh Dixit Manish Dubey Manish Kumar Singh Manisha Raj Mini Agrawal Monika Prakash Nandan Velankar Nandish Kumar
Nanita Tyagi Narendra Parchure Navita Nathani Nidhi Agrawal
Associate Professor, Department of Management Studies, Adi Shankara Institute of Engineering and Technology, Kerala Associate Professor, Prestige Institute of Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Director, School of Management, Maharaja Agrasain University, Badii, H P MBA (Marketing), Amity Business School Research Scholar, University of Allahabad Alumnus, Prestige Institute of Management, Gwalior Research Associate- IITTM, Noida Student, Prestige Institute of Management, Gwalior School of Studies in Commerce, Jiwaji University, Gwalior Research Scholar, Department of Applied Business Economics, Faculty of Commerce, Dayalbagh Educational Institute, Agra Assistant Prof., Amity University, Noida Nodal Officer, IITTM, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Alumnus, Prestige Institute of Management, Gwalior Assistant Prof., Amity University, Noida School of Studies in Commerce, Jiwaji University, Gwalior Associate Professor, IITTM, Noida Asst Professor, Prestige Institute of Management, Gwalior Research Scholar, Indian Institute of Tourism and Travel Management & Punjab Technical University, Joint Ph.D. Programme,2015 Assistant Professor, Indian Institute of Tourism and Travel Management, Noida Assistant Professor, Symbiosis, Pune Associate Professor, Prestige Institute of Management, Gwalior School of Studies in Commerce, Jiwaji University, Gwalior
xv
256
225 232 2 183 367 353 427 19 372 173
263 413 19 342 263 372 382 323 401, 443
456 142 313, 333 372
Nischay K. Upamannyu Nitin Shrivastava P. Raja Padmini Shukla Prabhat Kumar Singh Kushwah Pramod Kumar Pranshuman Parashar Prateek Pathak Prateek Sapra Prerana Baber Priyanka Jagtap Priyanka Kushwah Pukhraj Suman Rahul Pratap Singh Kaurav Rajani Kant Gupta Rajat Agarwal Rajat Arora Rajshree Sharma Ram Paliwal Ramesh C. Devrath Ravindra Pathak Reshma Rajani Richa Banerjee Ritu Gangil Rohit Kumar
Assistant Professor, Prestige Institute of Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Professor, Lotus Academy, Chennai Asstt. Prof. Dept. of Commerce, Jagran College of Arts, Science and Commerce, Kanpur Assistant Professor, Prestige Institute of Management, Gwalior Alumnus, Prestige Institute of Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Research Scholar, School of Studies in Management, Jiwaji University, Gwalior Research scholar, IITTM, Gwalior Research Scholar, SOS in Management, Jiwaji University, Gwalior Faculty, MITS College, Gwalior Student, Prestige Institute of Management, Gwalior Research Scholar, Jiwaji University, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior D. Phil Student, University of Allahabad Student, Prestige Institute of Management, Gwalior Student, Prestige Institute of Management, Gwalior Assistant Professor, Nagaji Institute of Technology and Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Assistant Professor, Indian Institute of Tourism and Travel Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Asst. Prof. Dept. of Commerce, Jagran College of Arts, Science and Commerce, Kanpur Assistant Professor, Prestige Institute of Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Student, Prestige Institute of Management, Gwalior
xvi
275 83 362 77 2 353 342 333 463 303 323 242 206 303, 382 367 102 19 333 232 394 232 77 111, 242 275 2
Rohit Singh Tomar Ruturaj Baber S K Singh Sakshi Bhedak Sanjay Gupta Seema Lall Shaifali Chauhan Shailja Bhakar Shalini Dubey
Shankha Mukherjee Shapoorji Sukhobrishti Shilpa Sankpal Sreekanth Narapareddy Subeer Banerjee Sushma Maligi
Swikrati Singh Tarika Singh Tarun Vashishat
Tavishi Tripti Tripathi U N Shukla Utkal Khandelwal
Assistant Professor, Amity University, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Dean, Faculty of Commerce, School of Commerce and Business Studies, Jiwaji University, Gwalior Student, Prestige Institute of Management, Gwalior Professor, Department of Commerce, MLB Government College, Gwalior Assistant Professor (Marketing), JD Birla Institute (Department of Management), Kolkata Assistant Professor, Maharaja Institute of Management and Technology, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Associate Professor, Department of Applied Business Economics, Faculty of Commerce, Dayalbagh Educational Institute, Agra Branch Business Leader, YES Bank Limited, Chittaranjan Avenue Branch, Kolkata Action Area III, Newtown, Kolkata – 700 135
249 303, 382
Assistant Professor, Prestige Institute of Management, Gwalior Student, PGDM (Marketing), AIMA- CME, Bangalore Dean Management, Maharaja Institute of Management and Technology, Gwalior Research Scholar, Indian Institute of Tourism and Travel Management & Punjab Technical University, Joint Ph.D. Programme,2015 Research Scholar, Jiwaji University, Gwalior Associate Professor, Prestige Institute of Management, Gwalior Research Scholar, School of Tourism, Travel & Hospitality Management, Central University of Himachal Pradesh, Shahpur, District Kangra, Himachal Pradesh Assistant Professor, AUUP, Noida Assistant Professor, Amity University, Gwalior Assistant Professor, Govt College, Silwani, Raisen. Assistant Professor, Institute of Business Management, GLA University, Mathura
56
xvii
232, 382 225 206 120 111, 131, 154 90 173
120 199
32 111, 131, 154 401, 443
219 19 435
183 249 382 163
V.Vardhini Vikash Kumar Singh Vinod K. Bhatnagar Yamini Sapra Yogesh Upadhyay
Research Scholar, Bharathiar University, Chennai Student (MBA Finance), Prestige Institute of Management, Gwalior Assistant Professor, Prestige Institute of Management, Gwalior Student, MBA, Prestige Institute of Management, Gwalior Dean, School of Management at Jiwaji University, Gwalior
xviii
362 313 313 303 56
Section I Strategic Marketing
EFFECT OF MANAGEMENT STYLES AND EMPLOYEE BEHAVIOR ON CUSTOMER SATISFACTION IN AUTOMOBILE INDUSTRY Prabhat Kumar Singh Kushwah, George Thomas, Rohit Kumar Abstract This study shows the relationship between management styles, employee behavior and customer satisfaction the study was empirical in nature and it include the sample size of 299 the data was collected through questionnaires and its contained 32 items, tools used for data analysis shows that which type of test have been applied. In this research reliability, validity like convergent validity and discriminant validity, EFA, CFA and SEM test has been applied. analysis reveals that the management styles has more effect on employee behavior then on customer satisfaction; employee behavior also has effect on customer satisfaction; management styles directly effecting customer satisfaction less as compare to indirectly management styles thorough employee behavior effecting customer satisfaction more in Gwalior region. Key words: Management style, employee behavior and customer satisfaction Conceptual Framework: Management Styles Management style refers to the approach used by executives when making decisions in one or more of the key areas commonly associated with managing a business given by Trask, Rice, Anchors and Lilieholm (2009). There are seven different management styles ranging from the manager makes the decisions and announces it to, the manager permits the group to make decisions within prescribed limits with various levels of authority allocated to the managers and their subordinates given by Tannenbaum and Schmidt (1973). Dominance scale based on the characteristics of the leader, the organization, the group and the individual by Steinmetz and Hunt (1974). The most dominant styles were the autocrat a leader who makes all decisions and has firm control over the entire organization. The bureaucrat is subordinate to other higher in the organization and therefore derives power from the structure of the organization and the organizations rules and regulations. The democrat describes a style dominated by the group where the group makes decisions for the organization and humanist leader is the most employee/subordinate oriented, where people come first and their happiness is the ultimate goal of the organization by Trask, Rice, Anchors and Lilieholm (2009). They include the autocratic management style, paternalistic, democratic, laissez-faire, and management by walking around among others as cited in Ajok Irene (2011) by Frame (2003), Pasaie (2002), Richard et-al (2004). The method of leadership that an administrator usually employs when running a business Depending on business circumstances, a manager might need to employ more
2
than one management style in a more or less formal way to achieve the highest degree of effectiveness in their role. A variety of management style types exist, such as autocratic, paternalistic, laissez faire, democratic, informal, participatory, supervisory, etc, and a particular style might be more suitable for a certain type of business or employee group than another. Management is defined as the Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials, and money. According to Peter Drucker (2005) Customer Satisfaction Customers are the life blood of an organization, so their satisfaction is the top goal of the firm, and are ranked by their satisfaction score as cited in Vem Linus Jonathan (2012) by Wiirtz (2003), The academic literature postulates that customer satisfaction is a function of the discrepancy between customer’s prior expectations and perception regarding the patronage or purchase as cited in Dakung Reuel Johnmark (2012) by Oliver, ( 1977); Churchill & Surprenant Satisfaction is an “overall customer attitude towards a service provider” an emotional reaction to the difference between what customers anticipates and what they receive as cited inVictoria Bellou (2007) by Levesqueand McDougall, (1996). It seems self evident that the companies should try to satisfy their customers. Satisfied customers usually return and buy more they tell other people about their experiences, and they may well pay a premium for the privilege of doing business with the supplier they trust. Statistics are bandied around that suggest that the cost of keeping a customer is only one tenth of winning usually a new one. Therefore, when we win a customer, we should hang on to them Written by Paul Hague and Nick Hague. Recent interpretations in the consumer domain now couch satisfaction as a fulfillment response. Fulfillment implies that a consumption goal is known, as in basic motives of hunger, thirst, and safety. However, observers of human behavior understand that these and other goals can be and frequently are modified and updated in various ways. Thus, consumer researchers have moved away from the literal meaning of satisfaction and now pursue this concept as the consumer experiences and describe it Employee Behavior Behavior refers to the actions of a system or organism, usually in relation to its environment, which includes the other systems or organisms around as well as the physical environment. It is the response of the system or organism to various stimuli or inputs, whether internal or external, conscious or subconscious, overt or covert, and voluntary or involuntary is cited in Ajok Irene (2011) by Dusenbery, (2009) 3
It defines Employee behavior as the range of behaviors exhibited by employees and which are influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion and/or genetics is cited in Ajok Irene (2011) by Bornstein (2010), The employee behavior mechanisms fall within a range with some behavior being common, some unusual, some acceptable, and some outside acceptable limits. Managers can be effective at changing undesirable employee behavior but they need to understand why employees behave the way they do. For example, late submission of reports, late coming cited in Ajok Irene (2011) by Davila, (2009). Employee behaviour is defined as an employee’s reaction to a particular situation at workplace. Employees need to behave sensibly at workplace not only to gain appreciation and respect from others but also to maintain a healthy work culture. One needs to adhere to the rules and regulations of workplace. Remember, Office is not a place where you can shout on fellow workers, spread rumours, criticize your Boss and so on. You just can’t afford to be rude with your team members. Be polite and speak softly. Do not forget that you are not the only one working; there are other people around as well. Some people have a tendency to have their lunch at their workstations only. Such behaviour is completely unprofessional. Literature Review Melissa L. Gruys (1999) this research is done to study the different employee behavior by examining the relationships between various different behaviors. To get Knowledge of the relationships between employees of different behavior this will contribute to more effective prediction and prevention of employee deviance in the workplace. Prof. Dominic cooper (2006) this study is done to check behavioral safety in a nickel refinery to research focus on commitment behavior and employee safety behavior the timing and magnitude suggest the management must continually focus on commitment and safety behavior. Porter (1985) Customer satisfaction is becoming increasingly important for organizational survival, in this research, the study seeks to examine the impact of cultural dimensions on the customer service orientation of employees and recognize potential variations between the Perceptions of managerial and non-managerial employees regarding their relationship and he found provide knowledge of the perceptions of front-line employees regarding the effect that organizational culture dimensions have on customer service orientation. Some effects were uniform for all employees, while others varied depending upon the position occupied by the employee.
4
David Mc. A Baker (2007) The purpose of this study was to focus on service quality and customer satisfaction of the airlines between 2007 to 2011 using data from the Department of Transportation Air Travel Reports The objectives of this study were to compare customer satisfaction and service quality with respect to airlines quality and determine the relationships between the service quality and passengers’. Ajok Irene August (2011) The purpose of the study was to focus on the influence of management styles on employee behavior in the ministry of public service. The study was therefore based on different objectives which are to high light different types of management styles, to find the relationship between management style and employee behavior to come up with strategies on how to improve management styles. The research was carried out basing on across section study using quantitative research techniques. The study sample was purposively selected using a simple random sampling and the study constituted sixty respondents. Findings showed that the ministry uses a number of management styles which included autocratic, democratic and paternalistic and laissez-faire style of management was not used to revealed a strong relationship between management styles and employee behaviors. Gupta Kavita et al. IJSRR (2012, 1(3), 88-95) customer satisfaction to the employees under their job is the same as motivation. It focuses more on customer understanding and solving problems according to their management style. This Study focuses on the increased commitment from the employees leads to more improvement in their productivity. And their commitment levels are a function of employee satisfaction. Hence, it is important to focus on the employee satisfaction levels. Vem Linus Jonathan (2012) in this study employee in service organizations is compared to the service itself. Their importance to the firm is critical to both service delivery and service production. Service is all about the people because they are the one who needs to be satisfy by the employees or firm because according to customer perception what quality services give to the customer is important. To determine the customer satisfaction to determine how empowerment is perceived by employees. Westbrook and Oliver, (1991) in this study the focus is on to survive in high competitive markets; organizations need to provide services that have good satisfied and loyal customers. customer satisfaction is the new standard by which customers are measuring performance of the industries Satisfied customers are more loyal, producing several benefits for organizations. Ong Lin Dar February (2010) this research focus on employee behavior and work behavior of employees as the trust Investigations of co-worker trust focus on a different referent, and are expected to have unique effects on employee behaviors at work.
5
According to Frame (2003) Management style is concerned with the way managers interact with their staff. Typically, autocratic management is associated with traditional image of Boss. In this management style bosses make all the decisions. They exercise tight control over their staff and match around the office with grim expressions. Autocratic managers are not interested in processing information from anyone else and they are not interested in feedback from staff. This means that the manager makes decisions unilaterally, and without much regard for subordinates. As a result, decisions will reflect the opinions and personality of the manager; this in turn can project an image of a confident, well managed business. The Directive Autocrat makes decisions unilaterally and closely supervises subordinates; The Permissive Autocrat makes decisions unilaterally, but gives subordinates latitude in carrying out their work.The authoritarian or autocratic manager is primarily concerned with task accomplishment rather than relationships. Primarily uses directive management behaviors. A more Paternalistic form is also essentially dictatorial; however, managers take into account the best interests of the employees as well as the business. Communication is again generally downward, but feedback to the management is encouraged to maintain morale. This style can be highly advantageous when it engenders loyalty from the employees, leading to a lower labor turnover, thanks to the emphasis on social needs. On the other hand, for an autocratic management style the lack of worker motivation can by typical if no loyal connection is established between the manager and the people who are managed. It shares disadvantages with an autocratic style, such as employees becoming dependent on the leader (Rashida Khilawala 2008). As much as the leadership style known as paternalistic management contains some autocratic dynamism, it comes as being a bit warm and a bit fuzzy within the precincts of its approach. In its paternal aspect, it harkens in the line of a father being firm though has good intentions in the life of one's children and in the business limelight, the employees. Just like most paternal beings are, except for those dads who keep saying: "I told you", the typical paternalistic manager most of the times explains the specific reason as to why he has taken certain actions in management and for his employees. He is very far from being autocratic and looks after the harmony within his or her team (Xiangmin Liu et al 2010) Democratic management is participative in that managers and staff make decisions jointly. In a Democratic style, the manager allows the employees to take part in decision-making: therefore everything is agreed by the majority (Dahl, Shapiro, Cheibub 2003). The communication is extensive in both directions (from subordinates to leaders and vice-versa). This style can be particularly useful when complex decisions need to be made that require a range of specialist skills. From the overall business's point of view, job satisfaction and quality of work will improve. However, the decisionmaking process is severely slowed down, and the need of a consensus may avoid taking the 'best' decision for the business. It can go against a better choice of action. Democratic mangers are also two types; permissive and directive. In looking more positively at the
6
characteristic elements of good democratic management the following statements are associated with sound democratic management: There is true ‘mutual’ involvement in the decision making process for example the manager and subordinates both make significant input into decisions. It is both appropriate and often necessary for the manager to be sure that the goals are set and understood by subordinates. (Richard, et.al, 2004) According to Frame (2003) with laissez-faire management style anything goes; staff can do whatever they want. It might even be argued that laissez-faire management is non management; nobody is in charge. The manager’s role is peripheral and staff manages their own areas of the business; the manger therefore evades the duties of management and uncoordinated delegation occurs. The communication in this style is horizontal, meaning that it is equal in both directions, however very little communication occurs in comparison with other styles. The style brings out the best in highly professional and creative groups of employees, however in many cases it is not deliberate and is simply a result of poor management. This leads to a lack of staff focus and sense of direction, which in turn leads to much dissatisfaction, and a poor organization image. Bilton, (2007) argues that in pursuit of creativity, today’s managers are encouraged to reject control and hierarchy in favor of release and individualism. According to the new orthodoxy, the role of management is to enable the individual autonomy of the employee, not to control the workforce by setting limits and deadlines. Hierarchies are flatter, organizational cultures and self consciously ‘causal’ and managers have removed their neckties in this system of creative management or ‘soft control managers seek to remove constraints in order to free individual workers to express themselves, to take risks and to challenge conventional thinking. Rationale of The Study Business environment is dynamic in nature industries and organizations is changing rapidly in terms of organizational structure, uses of technology and the psychology of employee so this is very difficult to determine which management style should be adopted to take the 100% of the employee so that the customer get the maximum satisfaction there is need to explore correct management style according totheindustry in earlier researches study is done to done to differentemployee behavior by examining the relationships between various different behaviorsand customer satisfaction ,safety and expectation have been taken care. How far employee behavior effects the different management style and this study is done to check the effect of management style and employee behavior on customer satisfaction for which three management style is being taken authoritarian, laisser-faire, participative. Objectives
7
To identify the factors underlying authoritarian management style, laissez-faire management style, participative management style, employee behavior and customer satisfaction. To develop a model of authoritarian management style, laissez-faire management style, participative management style, employee behavior and customer satisfaction and evaluate the relationship which shown in the model. To test the model. To open new vista for further study. AMS PMS
Customer Satisfaction
Management Style
LFMS Employee Behavior AMS: Authoritarian Management Style PMS: Participative Management Style LFMS: Laissez-Faire Management Style Null Hypothesis H01: There is no effect of management style on customer satisfaction. H02: There is no effect of management style on employee behavior. H03: There is no effect of employee behavior on customer satisfaction. Research Methodology The study was empirical in nature and field survey method was used to complete it. Population was all the users of car within the Gwalior city. Since there is no availability of existing list of all the customers of automobile industry so no sampling frame was utilized. Individual Respondent was the sampling element. 299 individual respondents were the sample size. Purposive Non Random Sampling technique was used. For the purpose of data collection, standardized questionnaire was utilized to measure the factors affecting management style, employee behavior and consumer satisfaction on a Likerttype scale 1 to 5 where 1 stands for minimum agreement and 5 stands for maximum agreement. For data analysis Reliability test was applied to check the reliability of the questionnaire with the help of Cronbach Alpha. Validity test, face validity, content validity, constructs validity and discrcriminant validity was applied to check the validity of the questionnaire. Exploratory Factor analysis will be applied using SPSS 18 to underlying the factors of the variables in the questionnaire. Confirmatory factor analysis will be applied using AMOS to confirm the items of the factors of the variables in the 8
questionnaire and Structural Equation Modeling will be applied using AMOS to check effect of independent variable on dependent variable and to test the model. Results Reliability Table 1: Reliability of the measures which was used in this research paper their results are as follows S. NO. 1. 2. 3. 4. 5.
Variable Name Authoritarian Management Style Participative Management Style Laissez-Faire Management Style Employee Behavior Customer Satisfaction
Cronbach’s Alpha 0.707 0.817 0.780 0.789 0.737
No. of Items 5 4 5 10 8
The results of the reliability are clearly indicating that all the measures are having reliability higher than the book value which is 0.7 hence the questionnaire is highly reliable. Kaiser – Meyer – Olkin Measures of Sampling Adequacy and Bartlett’s Test of Sphericity: The results are shown in the table Table 2: S. NO. 1. 2. 3. 4. 5.
Variable Name Authoritarian Management Style Participative Management Style Laissez-Faire Management Style Employee Behavior Customer Satisfaction
KMO 0.704 0.618 0.744 0.617 0.774
Bartlett’s Test of Sphericity 302.852 738.996 432.357 2510.373 461.501
DF 10 6 10 45 28
Sig. 0.000 0.000 0.000 0.000 0.000
Kaiser – Meyer – Olkin Measures of Sampling Adequacy test was applied to check the adequacy of the sample in other words that data was normally distributed or not if the value of KMO lies between 0.5 to 1 then data is normally distributed from the table we can see that all the measures having the value greaten then the 0.5 hence the data is quite adequate to consider the data for factor analysis. Bartlett’s Test of Sphericity test was applied to check the null hypothesis that item- toitem correlation matrix was an identity matrix. The hypothesis was tested through ChiSquare test; the values of Chi- Square for authoritarian management style (302.852), participative management style (738.996), laissez-faire management style (432.357), employee behavior (2510.373) and customer satisfaction (461.501) all are significant at 0% level of significance. Therefore, null hypothesis was rejected, indicating that the item- to-
9
item correlation matrix is not an identity matrix and therefore data of all the measures were suitable for the factor analysis. Factor Analysis: Principle component factor analysis with varimax rotation was applied to find out the underlying factors of the questionnaire. The factor analysis for authoritarian management style resulted in 1 factor, factor analysis for participative management style resulted in 1 factor, factor analysis for laissez-faire management style resulted in 1 factor, factor analysis for employee behavior resulted in3 factors and factor analysis for customer satisfaction resulted in 2 factors. The details about factors of employee behavior and customer satisfaction, the factor name, Eigen value, and items converged; factor lodgings and variance% are shown follows: Table 3: Principal component analysis Employee Behavior Factor Name Eigen Value Sincerity 2.563
Variance Explained 25.632%
Politeness
2.098
20.981%
Responsiveness 2.060
20.596%
Customer Satisfaction Compatibility 2.289
28.611%
Satisfied
20.913
1.673
Items Converged
Factor Loads
19. Work as a Team 18. Handles the Queries 17. Meet Deadline 16. Complete Work on Time 20. Find Problems 22. Courtesy 24. Show full Support 21. Response to Every Enquiry 23. Communicate Freely
0.817 0.776 0.701 0.558 0.519 0.970 0.964 0.980 0.977
29. Interactions 28. Managed 27. Unforeseen or Critical Situations 32. Understands My Needs 25. Satisfied
0.873 0.842 0.510 0.778 0.721
CFA CFA of Employee Behavior standardized estimates
10
Figure 1: CFA of Employee Behavior After applying EFA on employee behavior 3 factors of employee behavior were identified sincerity (5 items), politeness (2 items) and responsiveness (2 items). CFA was applied and the final composition of factors after CFA was - sincerity (5 items), politeness (2 items) and responsiveness (2 items). Therefore, the final measure of employee behavior had nine items, converged five items, two items and two items respectively on each factor. CFA Results Table 4: CFA Results X2
DF P- Value CIMN/ DF
Criteria
-
-
Obtained Value X2 GFI NFI
32.7 21 0.124
>0.05
GFI
1 0.05, hence we have not rejected the null hypothesis. Post HOC Multiple Comparisons Dependent Variable: ads (I) age Tukey HSD 1.00
2.00
3.00
4.00
(J) age 2.00 3.00 4.00 1.00 3.00 4.00 1.00 2.00 4.00 1.00 2.00 3.00
Mean Difference (I-J) -2.85965 3.06250 -1.00000 2.85965 5.92215 1.85965 -3.06250 -5.92215 -4.06250 1.00000 -1.85965 4.06250
Std. Error 2.99360 3.33897 3.53989 2.99360 1.97334 2.29698 3.33897 1.97334 2.73189 3.53989 2.29698 2.73189
Sig. .775 .796 .992 .775 .018 .850 .796 .018 .450 .992 .850 .450
Although age did not have any impact on consumer perception towards advertisement but it was observed through post hoc test in ANOVA that age group 2 i.e., 25-30 & 3 i.e., 31& above are relative with the values ranging within significance level of 5%. H0 (2): Age has no impact on consumer perception towards advertisement. Conclusion The study did not find any effect of age and gender on consumer perception towards advertisement. But ‘information’ was identified as major factor of advertisement whereas persuasion was followed by it. Although age did not have any impact on
108
consumer perception towards advertisement but it was observed through post hoc test in ANOVA that age group 2 i.e., 25-30 & 3 i.e., 31& above are relative with the values ranging within significance level of 5%. The study reveals that consumer seeks ads an as source on information, so the companies should try to focus on providing more information, ad’s also helps the consumer to remember brand and product name, ads with the catchy jingles are simply remembered and consumer also likes to know about gifts or offers. Limitations of the study The study has been restricted to one school in the Gwalior region of Madhya Pradesh state, so the generalization of the findings may be limited. The result calculated on the opinion of the respondents may be biased. Avenues for Further Research The study indicates that gender and age does not have impact on consumer perception towards advertisement. An increased sample size could be used to validate whether this is indeed true. Increasing variety can bring interesting insights. Increase of sample size would make a difference. More demographic variables can enrich the study. Adding more depth to the study or applying CFA can concretize the results of the study. References Rai N. (2013), Impact of advertising over consumer behavior and attitude with reference to consumer durables, International Journal of Management &Research and Business Strategy, 2(2), 74-79. Abideen-Ul-Z, Saleem S, (2005), Effective advertising and its influence on consumer buying behavior, European Journal of Business and Management, 3(3), 55-65. Boopathy N.&ChaudhuriM, (2013), A Study on the Influence of Celebrity Brand Endorsement over Consumer Buying Behaviour, IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828, 2(3), 146-149. Shrivastava A, (2014), Do advertisement work? A study on change in consumers’ purchasing behavior due to advertisement, Abhinav International Monthly Refereed Journal of Research in Management& Technology, ISSN-2320-0073 ,3(5), 14-21. Si S. and. Kapoor M, (2014), Advertising Effectiveness on Consumer Decision Making & Decision Making: Study of InsuranceIndustry, International Journal of Advancements in Research &Technology, ISSN 2278-7763, 3(1), 83-94. Banyte J, Paskeviciute K. and Rutelione A, (2014), Features of shocking advertizing impact on consumers in commercial and social context, Innovative Marketing, 10(2), 35-46. Niazi Khan K, Siddiqui J, Shah Ali B. and Hunjra Imran A, (2012), E ective advertising and its in uence on consumer buying behavior, Information Management and Business Review, 4(3) 114-119.
109
Matharu Kaue S. and Bansal A, (2015), Factors influencing consumer behaviour of tv viewer respondents in Indore, India to selected convenience products, ABAC Journal, 35(1), .46-58. Rathi P, Mantri R. and Laddha A, (2015), Effect of Advertisement Messages on Consumer Perception and Attitude, Journal of Exclusive Management Science, 4(4), 1-8.
110
IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER: BUYING BEHAVIOR IN GWALIOR REGION Shaifali Chauhan Dr. Subeer Banerjee Dr. Richa Banerjee Abstract This study mainly focuses on the factors that makes celebrity endorsed for products more popular, examining the perception of consumers about celebrity endorsements, consumer buying decision and finally the impact of celebrity endorsements on customer buying behavior. This study is based on primary data and data is collected through questionnaires which is having 5 points likert scale from strongly agree to strongly disagree; responses were taken by 100 respondents with judge mental random sampling in Gwalior region. SPSS software will used and data will be analyzed reliability and regression analysis. Keywords: Celebrity Endorsement, Consumer buying behavior Conceptual Framework Everyday consumers use to open the elements of thousands of accents, tones and images in magazines, newspapers, billboards, websites, radio and television. The marketers make certain all potential efforts to maintain their brands and to grab the market share. The thrust is on attracting the consumer’s purchase purpose and rising positive associations not just to retain their purchasing power but also to induce to attract the new consumers. According to a survey there are around 130 television channels in India broadcasting over 3 million television commercials each year in India. All these images in magazines and other media forms make the consumers numb to all the marketing techniques. Moreover, people forget 80% of the information in just 24 hours. Hence it becomes confront for a marketer to find a catch that will hold the subject’s attention. But in a marketplace where advertising plays a essential role in coordinating consumer purchases, it becomes important to companies to provoke all feasible measures to influence motivate and hammer desire to purchase, in the customers through an effective advertising movement proves that the use of celebrities in advertising generates lot of media hype and immediate attention. Celebrity Endorsement A form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service. Manufacturers of perfumes and clothing are some of the most common business users of classic celebrity endorsement techniques, such as television ads and launch event appearances, in the marketing of their products.
111
According to Oxford dictionary, celebrity means “a famous person". A person who is excelled in his/her field of action or activity. In our day-to-day activity, we perform many acts at home, at work place, on field in sports, in social life. But these acts may be daily routine or just "acts". It means that giving no extra-ordinary results, not noticed by anybody surrounding, and not taken into notice by Media. But if a person acts or performs something which gives spectacular results is noticed by masses. That person has done something special that we and masses cannot do. He is regarded as a special person with some "extra" given by that "Almighty" above. We start feeling that he/she is great. We start celebrating his/her all acts which produce success. If the success rate for that person is very high to "deliver" same results, he becomes a "CELEBRITY". It may be in field of sports, cinema, theatre, social life, politics or science anything but something with some special results. Advertisements are needed to introduce products in market and making people responsive about the product. The message of the advertisement depicts in sequence about its quality, price, features etc. So a celebrity is a person who grabs greater acknowledgment of the common segments of the people and due to this uses this appreciation in coming in various advertisements and letting customers knew about product (McCraken 1989). They are usually known among the segments of the people for their achievements in expert areas which is differs from the product or services endorsed by them. Friedman & Friedman 1979). This stands factual for classic forms of celebrities such as actors like Shah Rukh Khan, models like Milan Somen, Sports athletes like Sachin Tendullkar and entertainers like Maliaka Arora Khan but also for less observable groups such as businessmen like the Ambani’s or politicians like Rahul Gandhi. Consumer Buying Behavior Definition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand:
Why consumers create the purchases that they make? What factors influence consumer purchases? The changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:
Buyer’s reactions to a firms marketing strategy has a great impact on the firm’s success.
112
The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies
Types of Consumer Buying Behavior Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyer’s level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk:
Personal risk Social risk Economic risk
The four type of consumer buying behavior are:
Routine Response/Programmed Behavior--buying low involvement habitually purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying product occasionally. When you need to obtain in sequence about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. Extensive Decision Making/Complex high association, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. In sequence from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making. 113
Literature Review This study was conducted to assess the “Endorsing products for the money: The role of the correspondence bias in celebrity advertising” known the consumers’ attitudes towards the celebrity endorser. The consumers’ habitually have a positive attitude towards the product and the celebrity, although the fact, isfine, that the endorser earned a lot when promoting the product. Cronley M.L (1999) Tripp C Jensen T.D and Carlson L. (1994), in this article convictionvalue, reliability of celebrity endorsers initiates that how a great deal consumer’s belief the celebrity endorser to be convincing. When a celebrity endorses one or two products it is considerably more responsible than a celebrity who endorses even supplementary products. This research was done to investigate aboutdifferences which were existed between the current state of associations and the perfect state. So consumers conventional there was a need to get the product or service which could distribute some profit (Blackwell, et al. 2006). For example, the product or service had the capability to fill consumers’ requirements or to crack the predicament which was worth additional than the cost of buying it. On the supplementary hand, vistaacknowledgmentpossibly will be occurred as soon as consumers were open to the elements to different or better quality products (Solomon, 2006). Edwards and Ferle (2009) exposed that even though celebrity endorsements have become amajor part of advertising, there are some impendingrisks associated with celebrity endorsement greater than which the advertiserdoes not have any power over. Moreover, consumers’ reactions in rejoinder to the recommendations were different with the source’s apparent level of expertise and the target person’s level of synchronization with those recommendations. When consumers exposed to a source perceived as high expert, they would reveal a higher level of conventionality with the source’s recommendation than did those open to the elements to a source with lower level of expertise (Ohanian 1990). As a result, the level of apparent celebrity knowledge could be use to estimate the efficiency of celebrity endorser (Dr. Bimal Anjum, Sukhwinder Kaur Dhanda, and Sumeet Nagra 2 October 2012). The research is focused on “the impact of celebrity endorsers on the purchasing behavior ofcustomers’. Marketers make use of celebrities to get better sales as well as to create the brand equity. There hasbeen gigantic impact on sales of the products those being endorsed by celebrities. The study concludesthat the companies via the approach of celebrity endorsement have more trustworthiness, brand awarenessand it enhances the reflection of the product.
114
This research was done to examine the impact of celebrity endorsement on the brand equity in theaesthetic industry in Sri Lanka. Customer’s frame of intelligence about the brand is exaggerated by the celebrityendorsement and its dimension. The research is passionate on the Jaffon Peninsula People. Theresearch deals with the essentials that the use of celebrity endorsers in marketing enjoys prominent popularity, largely because they have optimistic impact on brand image. Various factors like trust worthiness, credibility, attractiveness, expertise and celebrity-match up are premeditated in the research. (S. Sivesan-April 2013) This study was conducted to assess thedifferentfactors which were concerned in celebrity endorsement approximating Price vs. Profit, manifoldbrand endorsement vs. manifold celebrity endorsement in addition tovariety of factors impacting a brandeven thoughmortal viewed by a consumer. Separately from selecting a celebrity it is also essential to assesseffectiveness of that celebrity. A multiplicity of examples of celebrities have been mentioned thatcelebrity endorsements have buoyantblow on brand and sales (Ms. Jyoti Kasana and Mr. NaveenChaoudhary 2014) The objective of this study was to determine the articulacy of celebrity endorsement on the consumer’s purchasing decisions with regards to digital media players. Research studies that celebrity endorsers are most professional when they are analogous with the product being endorsed. The study showed that trend, beauty products, luxury goods and generousgearprofit the largest part from celebrity endorsement. This research gives the marketers a better idea about the tactics of employ when marketing digital media players to young-looking adults. (Reginald Esangbedo, May 20, 2011) Purpose of this paper was to determinethe factors that motivates and affects the purchase advance of consumers at Villupuram and to make contact with the level of demandscreated by celebrity endorsed advertisement on buyer durables. A range of factors have been studied which manipulate the customers to buy the products endorsed by the celebrities such as preferred celebrity’s attendance in the advertisement, Celebrity’s sincerity of the durable’s capable performance/attribute, Celebrities vouching of the durable features and quality convincing factors. The study also shows modify in the sales of the products with the factor of celebrity endorsement. The consumers of durable products have their motivational sources from need and product utility. The study reveals that the celebrity’s convincing endorsement motivates them to materialize the purchase of durables. (S. Sathish, Dr. A. Rajamohan, October 2012) Atkin and Block (1983), Petty (1983) and Ohanian (1991), Kamins (1990), O’Mahony & Meenaghan (1998) recommended that the celebrity endorsers entertains more affirmative attitude and better intensions for purchases than a non-celebrity endorser. Similarly, Packard (1991) believes that celebrity endorsement is more effectual in selling product and services as a position symbol for convinced section of the society. For eg: Parkers pens endorsed by Amitabh Bachchan are pure symbol of the class connected 115
with the pen. It signifies the privileged and sophisticated side of an individual’s personality Sadhu Ramakrishna, Santhosh Reddy (2005) suggest that - To be triumphant, brands need to persuade consumers that they bring a different image and value commencing other challenging products. In newwords, brands have to show their based on fact personality to the prospective consumer(s) and celebrities are the best way to do this. Joshi and Ahluwalia (2008) establish that the draws on of celebrity for endorsements create a very complimentary impact on the consumer and it creates a connect which forces a consumer to purchase a product. Edwards and Ferle (2009) discovered that while celebrity endorsements have become a vital part of advertising, there are some forthcoming risks related with celebrity endorsement over which the advertiser does not have any command. This study concluded that assortment of right and suitable celebrity for brand endorsement is a challenging proposal. The advertisers and the agencies should believe various dimensions even as celebrity selection. Supriyo Patra and Saroj K. Datta (2010) This study was focused on the celebrity can enhance the image of a product in many ways. It is the role of marketer to influence the appropriate fit between the product and the celebrity. She supplementary stated that Celebrity Endorsements, on one hand provide support to the brand but in no way guarantees that the disadvantages connected with the similar could be avoided. Prof. Gurleen Arora (2011) Research Objectives Objective of this study is to find the impact of celebrity endorsement on consumer buying behavior. Ho - There is no impact of celebrity endorsement on consumer buying behavior Research Methodologies For this study mainly primary data and information has to be used. The primary data is collected through questionnaires from various respondents. To meet up with the objectives of study 100 customers were selected as sample unit. So, the questionnaires were filled by 100 respondents which were structured with questions of celebrity endorsement and consumer buying behaviour. Questionnaire is based on five point likert scale. To carry out the study in more accurate convenience random sampling method was selected. Primary Data
116
Primary data is the data which is used or collected for first time and it is not used by anyone in the past. There are number of sources of primary data from which the information can be collected. Data Analysis Reliability Statistics Cronbach's Alpha .889
N of Items 20
During reliability analysis we found that, when statistics of items were 20 cronbach’s alpha then the value was .889. Reliability Reliability Statistics Cronbach's Alpha .782
N of Items 14
In second section which is of consumer behavior in that we found reliability analysis, when statistics of items were 14 cronbach’s alpha then the value was 0.782.In model summary we analyze that R Square is (0.646) put forward that 64.6% in consumer behavior to know how to be illuminate with the help of Celebrity Endorsement. Model Summary Model R
R Square
Adjusted Square .643
1 .804a .646 a. Predictors: (Constant), VAR00035 ANOVAb Model Sum of Squares 1 Regression 4148.038 Residual 2269.402 Total 6417.440 a. Predictors: (Constant), VAR00035 b. Dependent Variable: VAR00036
df 1 98 99
R Std. Error of the Estimate
Mean Square 4148.038 23.157
4.81219
F 179.125
Sig. .000a
F value is 179.125 at significant level .000a that means model is appropriate for further exploration Coefficientsa Model
1
(Constant) VAR00035
Unstandardized Coefficients B Std. Error 14.226 2.337 .491 .037
117
Standardized Coefficients Beta .804
t
Sig.
6.086 13.384
.000 .000
a. Dependent Variable: VAR00036
Regression Equation is Y= a+bx Y= 14.226 + .804x Y is Consumer buying behavior (dependent variable) and x is a Celebrity endorsement (independent Variable) T value 13.384 at significant level .000 that means null hypothesis that is there is no impact of celebrity endorsement on consumer buying behavior. This model implies that independent variable that is Celebrity endorsement is making an impact on consumerbuying behaviorwhich is dependent variable Conclusion Celebrity endorsement has become anexhortation in Indian advertising industry today. The observablemotivation for obtainable for celebrities is the actuality that they have a mass demand and once recognized with a product, they can activate an instant evoke in the intellect of the consumer. Possibly this is why both Indian corporate and Multinational companies are in race to sign up sportspersons and film stars to endorse their brands. Celebrity advertising has become a vital tool for creating awareness of product. The important point in celebrity endorsement is the connectivity between the endorser and the product they endorse.A clearer understanding as to the progression of relationship between celebrity endorsement, and consumer buying behavior can help to find out better targeting of customer via partial marketing resources one more main thingis that the bollywood stars and cricket players are still the rulers of the advertisement field that’swhy there is always impact of celebrity endorsement on consumer buying behavior. Suggestions 1. The source pleasant appearance model also rests on communitypsychometric research. Message depends on the acquaintance, likeability, correspondence of the source. 2. It was observed that even if celebrity endorsement as a marketing communication activity is viewed in an optimistic light seeing as the consumers used terms like “glamorous” and “eye catching” to define it, the universal view involving to opting forcelebrityendorsed product as a personal choice was unenthusiastic. 3. The consumers follow the trends set by them both in terms of external beauty and valuableuniqueness. But this phenomenon is deemed to be short lived in the consumer’s lives Limitations of the Study 118
1. Gwalior region is very small as the literacy level is so low; awareness among the consumer is very low few people know about the term celebrity endorsement. 2. If celebrity use the same product what they endorse up to the same extent it will be more effective in term of using the product andimpact of consumer will be more. 3. It was very difficult to accumulate the attitude of the celebrities who are endorsing the brands. 4. The sample size is comparatively very small from which primary data has been composed. Consequently, the conclusions drainedfrom specific areas and any simplification will need a precautiousadvance. 5. Time constraints are another limitation in this study. References Atkin, C., & Block, M. (1983), Effectiveness of celebrity endorsers, Journal of advertising research. Cooper, J. (1984), Can celebrities really sell products? Marketing and media decisions. Dickenson, N. (1996), Can celebrities ruin a launch. Campaign, May, 3, 24. Rai, S. K., & Sharma, A. K. (2013), Celebrity Attributes and Influence on Consumer Behaviour–A Study of Sekhawati Region of Rajasthan, Pacific Business Review International, 5(11), 57-64. Erdogan, B. Z., Baker, M. J., & Tagg, S. (2001), Selecting celebrity endorsers: The practitioner's perspective, Journal of advertising research,41(3), 39-48. Tripp, C., Jensen, T. D., & Carlson, L. (1994), The effects of multiple product endorsements by celebrities on consumers' attitudes and intentions, Journal of consumer research, 535-547. Joshi, V., & Supreet, A. (2008), The impact of celebrity endorsements on consumer brand preferences, Department of Business, Manipal University, Dubai: United Arab Emirates. Menon, Mohan K. (1998), Celebrity Advertising: An Assessment of Its Relative Effectiveness available at http://condor.depaul.edu/dweinste/celeb/celeb_adverts.html. McCracken, G. (1989), Who is the Celebrity Endorser? Cultural Foundation of the Endorsement Process, Journal of Consumer Research, 16, 310-321. Ohanian, R. (1990), Construction and validation of a scale to measure celebrity endorsers' perceived expertise, trustworthiness, and attractiveness, Journal of advertising, 19(3), 39-52.
119
ATTITUDE OF CONSUMERS TOWARDS INDOOR AND OUTDOOR ADVERTISING- AN EMPIRICAL STUDY Seema Lall Shankha Mukherjee
Abstract Consumers’ attitude towards indoor and outdoor advertising was comprehended through this study. The sample was taken from two metro cities: Hyderabad and Kolkata. A questionnaire survey, of five point Likert scale and comprising of 12 items, was developed after a thorough literature review, where six attitude variables were identified. Comparisons between metros and within metros were carried out statistically. For all the variables, significant differences were found between indoor and outdoor advertising in both the metros. Correlations between the attitude variables for indoor and outdoor advertising were calculated. The attitudes holding positive and negative correlations were recognized. Introduction Promotion as one of the important 4 Ps of marketing just cannot be ignored in a dynamic and promotion aggressive marketing environment as of today. Advertising cannot be equally ignored as an important function of promotion. The ultimate aim of the marketer is to be able to sell through the company’s advertisements. This is achieved by changing or influencing the attitudes of the existing and potential customers. Advertisements are one of the mechanisms through which marketers sell their products. One of the important P of marketing is Promotion that cannot be denied in the present dynamic environment. The functions of advertisements as identified in the literature are,
Persuasion of the potential consumers Reinforcement of the consumers’ choice Serve as a reminder
Advertisements can be broadly divided into indoor and outdoor advertising. The ads on the print media (like newspapers, magazines etc.) and the electronic media (like TV and radio) are popular forms of indoor advertising. Billboards and hoardings are traditional forms of outdoor advertising while mobile-vans and kiosks are the modern forms of outdoor advertising. A person’s enduring response whether in terms of favorable or unfavorable cognitive evaluations, emotional feelings and action towards some object is referred to as attitude (Josephine et.al, 2008). These evaluations, feelings and actions differ from consumer to consumer due to the factors of heterogeneity. Therefore, this study attempts to elicit the
120
attitude of consumers towards indoor and outdoor advertisements. The sample survey was collected from two metropolitan cities. Subsequent comparison of attitudes was analyzed through statistical analysis. Literature Review A study revealed that both businessmen and college goers considered advertising misleading and annoying but comparatively prior was found to hold more positive attitude than latter of the same. Both the sample rated TV advertising as most irritating (Haller, 1974). On similar lines, another study revealed negative attitudes held by college students towards advertisements, as well as categorized them into 5 groups on the basis of the same (Larkin, 1977). A study assessed the factor related to attitude towards outdoor advertising. It was found that the attitude towards billboards and the attention expended on it was significantly and positively related (Donthu et al., 1993). A negative picture of consumer attitudes was found toward TV advertising and it was rated more negatively than advertising on any other media (Mittal, 1994). On the other hand, a study revealed that consumers believed that advertisements; whether outdoor or indoor; are informative, believable (Zhou et. al., 2002; Shavitt et. al., 1998) and entertaining (Shavitt et. al., 1998). The attitudes towards advertising were compared between different income groups and other demographic groups and found to be significant (Zhou et. al., 2002). The studies conducted in the past have shown mixed results revealing favorable as well as unfavorable attitude towards advertisements. Perusal of literature yielded six variables, common in almost all studies that have been undertaken for review. These variables are ‘learning from ads’, ‘believing in the information’, ‘ads are irritating’, ‘trying a new product because of an ad’, ‘ads are entertaining’ and ‘too many ads are in circulation’. Though there have been some studies related to outdoor and indoor advertising, but none was found with sample from metropolitan cities, Hyderabad and Kolkata. It was thus of interest to conduct this study. Objectives of the study As inferred from earlier studies, there is a difference in attitude formed by the consumers towards both indoor and outdoor advertisements. The attitude varies from different demographic segment, environment and locations. The purchase decision too depends on the form of advertisement one is exposed to.
121
Therefore, it would be of interest to study the attitude of two samples belonging to different demography and location. The following are the identified objectives,
To examine the differences in the attitudes of the consumers towards outdoor and indoor advertisements within two metro cities of India To compare the attitudes of the consumers towards outdoor and indoor advertisements between two metro cities of India
Methodology Questionnaire Development The data was collected using survey method, with two sets of questionnaires each relating to indoor and outdoor advertisements. The attitude statements represented the characteristics of advertising which were framed to seek the degree of agreement of the individuals on the characteristics of both the forms of advertising. These were scalar statements based on a 5 point Likert scale (1 being strongly disagree and 5 strongly agree). The attitude statements were abstracted from previous studies, namely learning about the products from the advertisements, believing in the information contained in the advertisements, advertisements are irritating, try a new product after seeing its advertisement, advertisements are entertaining and there are too many ads in circulation. Demographic information was also sought on age, gender, occupation, education, income, family type and marital status to profile the sample. The media of advertising used for this study were,
electronic (TV and radio), print (newspapers and magazines) for indoor advertising banners, hoardings, kiosks and mobile-vans for outdoor advertising.
Sample Judgmental sampling was used for the study with age bracket consisting of 18 years and above. Only office goers exposed to both the forms of advertisments were included in the sample, and it consisted of individuals from two metropolitan cities: Hyderabad and Kolkata. A total of 250 questionnaires were administered (125 in each city) and a total of 100 usable questionnaires were used from each city. The ultimate sample consisted of 200 respondents giving their opinions on both the forms of advertising in each of the two cities. Data Collection
122
First Phase Pilot testing was administered in the first phase of data collection. 20 people in the city of Hyderabad were given the questionnaire to seek suggestions for improvement in the questionnaire and corrigibility of the same by respondents. After the administration it was found that no changes were needed and thus the transition towards second phase carried out. The sample from pilot testing was not included in the next phase. Second Phase The data was collected using the questionnaire developed in both the metro cities. Every individual was administered two questionnaires. Indoor and outdoor advertisement questionnaire were serially coded in a pair, for the convenience of administration and identification of every respondent with respect to the organization and their names. Since every individual was first administered indoor advertising questionnaire, and then indoor advertising questionnaire following ten days’ gap, the collection of opinion of both the forms was recorded for whole sample individually. Analysis Now that there were statements to seek opinions on more than one media of indoor and outdoor advertising, the average scores of responses on various media were used for analysis. The software used for data analysis wasStatistical Package for Social Sciences (SPSS) 13.0 version. Independent t-tests were used at 5 percent level of significance for comparison of attitudes toward indoor and outdoor advertising between the two cities. Paired t-tests were used at 5 percent level of significance for comparison of attitudes toward indoor and outdoor advertising within each city. Paired t-tests were used because the same individual gave his or her opinion on both the forms of advertising in each of the two cities. Correlations between the attitude variables were calculated using Pearson’s correlation coefficient. Findings and Discussion Profile Analysis The profile of the sampled respondents is given in Table 1 in the Annexure.The percentage of male is 77 in Hyderabad which is comparable to 74 percent in 123
Kolkata.Majority of the respondents in Hyderabad (51%) belonged to the age group of 18 years to 25 years while in Kolkata 70% respondents belonged to the age group 26 years to 40 years.76% of the individuals in the sample from Hyderabad were in service and that in Kolkata was 96%.The non-professional graduates form 55% in Hyderabad and 66% in Kolkata. Management educated respondents were 26% in Kolkata while just a meagre 5% in Hyderabad. More than fifty percent (54%) of the respondents in the city of Hyderabad earn Rs. 10,000 or less per month and 31% earn between Rs. 10,001 to Rs. 20,000 per month while that in Kolkata is 31% and 34% respectively. Joint family comprised 47% in Hyderabad and that in Kolkata was 59%. Nuclear family in Hyderabad was 53% and that in Kolkata was 41%. Married people form 49% of the respondents in Hyderabad and that in Kolkata was 55% while the remaining were unmarried. Comparison of attitudes towards indoor and outdoor advertising within each city The paired t-tests performed at 5% level of significance to compare the attitude of the respondents towards indoor and outdoor advertising within Kolkata and Hyderabad gave some significant results. Paired t-tests were performed because in each city data were collected from the same persons for both the forms of advertising. In Kolkata out of the six attitude variables, five were significantly different at 5% level of significance. Learning about the products from the ads (p=0.04), believing in the information contained in the ads (p=0.00), ads being irritating (p=0.00), trying a new product because of an ad (p=0.00) and ads were considered to be entertaining (p=0.00) were significantly different. This implies that the attitudes of individuals differ between indoor and outdoor advertising. In Hyderabad out of the six attitude variables, five were significantly different at 5% level of significance. Learning about the products from the ads (p=0.00), ads being irritating (p=0.00), trying a new product because of an ad (p=0.05), ads were considered to be entertaining (p=0.00) and too many ads in circulation (p=0.00) were significantly different. In Kolkata out of the six attitude variables, five were significantly different at 5% level of significance. Learning about the products from the ads (p=0.00), believing in the information (p=0.00), ads being irritating (p=0.00), trying a new product because of an ad (p=0.05) and ads were considered to be entertaining (p=0.00) were significantly different. Table 2 in the annexure gives the summary of the paired t-tests results. To sum up, all the variables are significantly different in both the metros except for ‘too many ads in circulation’ which is significant only in Hyderabad and ‘believing in the information contained in the ads’ being significant only in Kolkata.
124
Comparison of attitudes towards indoor and outdoor advertising between the two cities Independent t-tests were performed at 5 percent level of significance to compare the attitudes towards outdoor and indoor advertising between Kolkata and Hyderabad.When the attitudes of the individuals towards outdoor advertising were compared between Hyderabad and Kolkata, significantly different results were found for the variables ‘believing in the information contained in the ads’ (p=0.01), ‘trying a new product because of an ad’ (p=0.00), ‘ads being entertaining’ (p=0.03) and ‘too many ads being in circulation’ (p=0.01). The mean score for all the variables were higher in Hyderabad than that in Kolkata, indicating that people in Hyderabad have a more favourable and positive attitude towards outdoor advertising. A mean score of 2.99 for the variable believing in the information contained in the ads in Kolkata indicates an inclination towards a neutral opinion because it almost approximates to 3 (3 being neither agree nor disagree in the Likert scale). Similar is the situation for trying a new product because of an ad. When the attitudes of the individuals towards indoor advertising were compared between both the cities, ‘ads are irritating’ (p=0.00) and ‘too many ads being in circulation’ (p=0.01) were significantly different. The mean score in Kolkata (3.50) for ads being irritating is higher than that in Hyderabad (3.18). This indicates that people in Kolkata find the ads much more irritating than those in Hyderabad. In Hyderabad the mean score for ‘too many ads in circulation’ is 4.50 which is much higher than that in Kolkata (3.30). This indicates that in the opinion of the people in Hyderabad, the circulation of ads is too many in number. Table 3 in the annexure summarizes the results of the independent t-tests. The results of the correlations calculated using Pearson’s correlation coefficient is summarized in Tables 4, 5, 6 and 7. The correlation between the attitudes variables in Kolkata was positive in both indoor and outdoor advertising. The attitude variables are positively correlated for indoor advertising in Hyderabad. Some variables are found to have negative correlation for the attitude variables of outdoor advertising in Hyderabad. ‘Ads being irritating’ was found to be negatively correlated with ‘learning about the product from ads’, ‘believing in the information contained in the ads’ and ‘ads are entertaining’. The finding can be attributed to the fact that the irritating ad as perceived by the person will not fetch any attention or furnish entertainment, and therefore there will be no learning about the product or the information the advertisement pertains. Conclusion, Implications and Future Research
125
Within the city of Kolkata attitudes of respondents towards indoor and outdoor advertising were found to be significantly different at 5% level of significance for all the variables except ‘too many ads are in circulation’ Within the city of Hyderabad attitudes of respondents towards indoor and outdoor advertising were found to be significantly different at 5% level of significance for all the variables except ‘believing in the information contained in the ads’ The correlation between the attitudes variables in Kolkata was positive in both indoor and outdoor advertising. The variables are positively correlated for indoor advertising in Hyderabad. Some variables are found to have negative correlation for the attitude variables of outdoor advertising in Hyderabad. ‘Ads being irritating’ was found to be negatively correlated with ‘learning about the product from ads’, ‘believing in the information contained in the ads’ and ‘ads being entertaining’. Comparison of attitudes between the two cities Indoor Advertising
Ads were thought to be irritating, more so in Kolkata than in Hyderabad Respondents in Hyderabad felt there were too many ads more than their counterparts in Kolkata
Outdoor Advertising
Respondents in Hyderabad were found to believe much more in the information contained in the ads and they often try a new product after seeing its ad than those in Kolkata Compared to respondents in Kolkata, respondents in Hyderabad were found to be entertained by ads and at the same time they felt there were too many ads
These findings have marketing implications. These findings are useful for the marketing managers in deciding on the media of advertisement and for allocation of the advertising budget. With an insight into the consumers’ attitudes toward advertising, the marketer can place the ads in a media which shall give a more favorable and positive attitude. This in turn will help minimize the sheer wastage of resources resulting from placing ads on media that do not yield positive and favorable attitude. Researchers could consider testing purchase intentions resulting from positive and favorable attitudes towards advertising. Researchers could consider investigating the reasons for the variables being significantly different. Similar research could probably be extended to other cities and other media of advertising with more number of variables 126
Limitations The sample size of 100 in each city is adequate to run the statistical tests but may not be representative of the whole city. A larger sample would have been a better representative of the two cities. Only six attitude variables which were found to be common in the literature survey have been undertaken in this study. Some other variables which may be of importance might have been ignored in an attempt to consider only the common variables. That would have probably given a much better understanding of the consumers’ attitudes towards indoor and outdoor advertising in both the cities. ANNEXURE Table 1: Profile Analysis
Age
18 to 25 years 26 to 40 years 41 to 55 years above 55 years
Gender
Male Female
Occupation
Business Service Student Housewife Others
Total
Total
Education
Income
Family Type
Marital Status
Total Matric or Below Under-Graduate Graduate and above (general) Engineer Doctor Management Total Below Rs.10000 per month Rs.10001 to Rs.20000 per month Rs.20001 to Rs.30000 per month Rs.30001 and above per month Total Joint Family Nuclear Family Total Married Unmarried Total
127
Kolkata 24 70 4 2 100 74 26 100 4 96 0 0 0 100 0 1 66 3 4 26 100 31 34 14 21 100 59 41 100 55 45 100
Percentage Hyderabad 51 47 2 0 100 77 23 100 12 76 2 8 2 100 2 28 55 5 2 5 100 54 31 13 2 100 47 53 100 49 51 100
Table 2 Paired t-tests at 5% level of significance: To compare the attitude towards indoor and outdoor advertising within Kolkata and Hyderabad Kolkata 0.04* 0.00* 0.00* 0.00* 0.00* 0.11
Learning about the products Believing in the information Ads are irritating Try a new product because of an ad Ads are entertaining Too many ads
p-value Hyderabad 0.00* 0.15 0.00* 0.05* 0.02* 0.00*
*Results significantly different at 5% level of significance Table 3 Independent t-tests at 5 percent level of significance: To compare attitude towards outdoor and indoor advertising between Kolkata and Hyderabad
Attitude Variables Learning about the products Believing in the information Ads are irritating Try a new product because of an ad Ads are entertaining Too many ads
Outdoor Indoor Kolkata Hyderabad p-value Kolkata Hyderabad p-value Mean Mean Mean Mean ------------------------------------------2.99 -------2.77 3.19 3.45
3.30 -------3.15 3.46 3.81
0.01* 0.00* 0.03* 0.01*
-------3.50 --------------3.30
-------3.18 --------------4.50
-------0.00* --------------0.00*
*Results significantly different at 5% level of significance Correlations Table 4: Correlation Matrix (Kolkata- Indoor Advertising) Variables
Learning about the products 1
Learning about the products Believing in the .701(**) information Ads are irritating .587(**) Try a new product because .525(**) of an ad
Believing in Ads are the irritating information .701(**)
.587(**)
Try a new Ads are Too product entertaini many because of ng ads an ad .525(**) .125 .223(*)
1
.434(**)
.531(**)
.148
.107
.434(**) .531(**)
1 .627(**)
.627(**) 1
.107 .088
.119 .138
128
Ads are entertaining Too many ads
.125 .223(*)
.148 .107
.107 .119
.088 .138
1 .678(**)
.678(**) 1
**Correlation is significant at 0.01 level (2-tailed) *Correlation is significant at 0.05 level (2-tailed) Table 5: Correlation Matrix (Kolkata- Outdoor Advertising) Variables
Learning about the products Believing in the information Ads are irritating Try a new product because of an ad Ads are entertaining Too many ads
Learning about the products 1
Believing in the information .551(**)
Ads are Try a new Ads are Too irritating product because entertaining many ads of an ad .122 .375(**) .343(**) .026
.551(**)
1
.163
.391(**)
.227(*)
.088
.122 .375(**)
.163 .391(**)
1 .046
.046 1
-.092 .379(**)
.274(**) .103
.343(**) .026
.227(*) .088
-.092 .274(**)
.379(**) .103
1 .095
.095 1
**Correlation is significant at 0.01 level (2-tailed) *Correlation is significant at 0.05 level (2-tailed) Table: 6 Correlation Matrix (Hyderabad- Indoor Advertising) Variables
Learning about the products Believing in the information Ads are irritating Try a new product because of an ad Ads are entertaining Too many ads
Learning about the products 1
Believing in the information .377(**)
Ads are Try a new Ads are Too irritating product because entertaining many of an ad ads .158 .570(**) .144 .096 .142 .343(**) .046 .035
.377(**)
1
.158 .570(**)
.142 .343(**)
1 .458(**)
.458(**) 1
.481(**) .408(**)
.144 .096
.046 .035
.481(**) .254(*)
.408(**) .076
1 .246(*)
.254(*) .076 .246(*) 1
**Correlation is significant at 0.01 level (2-tailed) *Correlation is significant at 0.05 level (2-tailed)
Table: 7 Correlation Matrix (Hyderabad- Outdoor Advertising) Variables
Learning Believing in Ads are about the the irritating products information Learning about the products 1 .473(**) -.356(**) Believing in the information .473(**) 1 -.205(*) Ads are irritating -.356(**) -.205(*) 1 Try a new product because .375(**) .329(**) -.048 of an ad
129
Try a new Ads are product because entertaining of an ad .375(**) .404(**) .329(**) .022 -.048 -.368(**) 1 .444(**)
Too many ads .297(**) .382(**) .180 .235(*)
Ads are entertaining Too many ads
.404(**) .297(**)
.022 .382(**)
-.368(**) .180
.444(**) .235(*)
1 .021
.021 1
**Correlation is significant at 0.01 level (2-tailed) *Correlation is significant at 0.05 level (2-tailed) References Donthu N., Cherian J. & and Bhargava M., (May/June 1993), Factors Influencing Recall of Outdoor Advertising, Journal of Advertising Research, 64-73. Haller F. T., (February 1974), What Students Think of Advertising, Journal of Advertising Research, 14(1), 33-38. Josephine W. M., Devasenathipathi T. & Parameswaran S., (2008), Customers’ Attitude Towards Advertisement with Special Reference to Airtel and Hutch Brand, The ICFAI University Journal of Consumer Behavior, III(2), 7-16. Larkin F. E., (1977), A Factor Analysis of College Student Attitudes Toward Advertising, Journal of Advertising, 6(2), 42-46. Mittal B., (January/February 1994), Public Assessment of TV Advertising: Faint Praise and Harsh Criticism, Journal of Advertising Research, 34(1), 35-53. Shavitt S., Lowrey P. & Haefner J., (July/August 1998), Public Attitudes toward Advertising: More Favorable Than You Might Think, Journal of Advertising Research, 38(4), 7-22 Zhou D., Zhang W. & Vertinsky I., (May/June 2002), Advertising Trends in Urban China, Journal of Advertising Research, 42, 73-81
130
STUDY OF ADVERTISEMENT ON PURCHASING BEHAVIOR OF YOUTH Archana Jadon, Shaifali Chauhan, Dr Subeer Banerjee Abstract It is well known fact that people in India did not just watch their favorite sport, film or serial, many of us watched the commercials. Regardless of how good the game was, there were usually a few ads that people talk about the next day. But one thing that people may not think about was how trustworthy an advertisement may be and, at a higher level, how much trust one can, or cannot, place in an advertisements industry. In Indian scenario it was proved that advertisements having great effect on purchasing behavior of youth. As we know these days, Durables companies were advertising their product so much on televisions and are spending so much money on the celebrity endorsement. For increasing the sale of their product, they took film stars, cricket stars in their advertisements of which are very costly. Therefore, we took this as opportunity to study different aspects of Advertisements; effect of advertising on purchasing behavior of youth is a form of communication used to help sell products and services. The role of the youth in family purchase decisions too has increased significantly, prompting the advertisers to shift their attention from women and children towards the youth. We took sample size of 100 and used graphical method to indicate the results of the respondents in our study. Keywords: Advertisement, purchasing behavior, youth Conceptual Framework Company used different symbol of advertisement for product and services in present scenario of technology and advancement. Every company is getting forward with the alliance of mass media like internet, audio, video, television, magazine, newspaper, and other print and electronic media channel. According to pusher advertising is the best tool to force customer for their product and services. Regarding any creative work, advertising is used as a tool to create product image in the mind of customer (Abideen, Farooq, and Latif 2011). The basic objective of advertising is to create brand image in the mind of customer sohe could remember and recall that particular advertisement at the time of next purchases related to product and services (Rumaniuk & Sharp) 2004. Many people get attracted and purchase their assessment after watching advertisement. Advertising is reasonable and least-cost method of communication to number of potential customer. It can secure lead of salesmen by convincing reader to request more
131
information. Advertising increases dealer’s confidence on company and its product by increasing more customer and advertising also enhance customer apprehension. Advertising get increased market demand and sometime it only become the reasons of product success in getting customer recognition, inclination, and even demand for the product. Advertising having importance for all kind of business whether it is large or small and some non business enterprises preferred advertisement for campaign purpose to attract youth for making and choosing Indian army as career option. Our health department creates awareness in public regarding family planning. The labor associations also use advertising. Advertisement has become an important part of the campaign regarding avoidance of smoking, family planning, physical fitness, and exclusion of drug abuse. There is the fact that advertising was accepted as means of encouragement and influential medium of promotion only in previous 25 years. Advertising help in boost marketing of product as well it helps consumer to choose best product among alternative. In India advertising having immature stage, that is why there is immense scope for development, so that it may be efficiently used for benefit of producer, trader, consumer, and for a country’s Economy. Everyday consumer is getting thousands of voices and image through audio &means. Everyday brand attempts to get at least small proportion of persons time to inform him or her of the marvelous (wonderful) and different attribute of product. The challenge for trader is to find out the knout that will be hold attention of customer towards the advertisement, for achieving attention celebrity endorsement is become a trick. Advertising According to American marketing association “Advertising is any paid form of non- personal presentation & promotion of idea, goods, and services by an identified sponsor” According to John S Wright, Wills L Winter, and Sheryl K Zeigler, in the advertising, TATA MC Grew hill, 5th ed.1983 “Advertising is controlled, identifiable information and persuasion by means of mass communication media”. John J Burnet also considered that AMA definition can be improved. According to him a better definition is-
132
“Advertising is the non personal communication of marketing related information to a target audience, usually paid for by the advertiser, and delivered through mass media in order to reach the specific objectives of sponsor.” (Promotion management, Houghton Mifflin company, 1998) Purchasing Behavior The purchasing behavior of consumer includes both the time spent by shoppers in the store or business and the unplanned spending of these shoppers (Donovan, Rosier, Marcoolyn, &Nesdale, 1994). An important aspect of purchasing behavior is that this variable is not the attitudes and intentions of the consumer, but only the purchasing behavior of the consumer. Donovan et al. (1994) noted that while the purchasing behavior of the shoppers is likely a result of the attitudes and intentions of the shoppers, other studies in measuring these emotional variables instead of the behavioral measures of impulse spending and extra time spent in the store. Impulse, or unplanned, spending is characterized by the purchase of a product when the brand, product, or need for the product was not previously determined (Kollat& Willett, 1967). Purchasing behavior is the behavior that consumer display in searching for purchasing, using, evaluating, and disposing of product and services that they expect will satisfied their need. Literature Review According to Ozga (1960) and Stigler (1961) the, advertising inform consumers about a product. They propounded that, advertising increases the required flexibility for a product and this happen because of sequencing of a product, it is assumed that product low quality in general. this is the parallel view of advertising which enhance by Stigler and Becker. According to Wilmshurst, 1985; lavidge&Steiner 1961'leckenby, 1976; Colley, 1961 Advertisement had been updated from last 20 yearsjust due to internet and television. Their model was based on chain of command of effect suggests that there was informal attachment between change in youth point of view about product and person expenditure for a product. The model recommended that advertising have a significant effect on its spectators or target audience from changing period. According to Begwell, 2001 advertising was detoriationof time and resource because advertisement not able to influence customer, at that time customer gave preference to allsameproduct. It increases the cost of production for one who advertise product but consumer was not going to respond the product. According to Abideen and Saleemn. D. the canvasser finds out consumer actions get affect by advertisement it can vary consumer behavior at closing stage but they take decision according to their own attitude. 133
Ayanwale et al (2005) realized on advertisement of product, he found that advertisement has leading effect on consumer image for a product, he found that advertisement has leading effect on consumer image for a product. Similar researchers have already been completed for the product reputation. For a promotional approach, advertising give a attention and customer attitude toward product purchase decision, and they examine that advertisers main function is to manipulate customer alertness, feeling, and buying conduct. According to Arens 1996, they define advertisement as a process of information, communication and judging method. Their research found that, companies used to collect data of potential customer, for intention to enhance knowledge of consumer towards its product. These collected data were helpful for research of consumer behavior, substantial, psychological and poignant behavior in the direction of dissimilar product used to identify their needs and wants. Bovee, et al.1995. Propounded that advertisement as a process of promotion of product, services, practice, and information with the help of unusual basis of afflation of consumer i.e. text, spoken, and visual information interpreted on media. According to Stigler and Murphy, 1989, advertising manipulate consumer by put together a “complementary influence in consumer’s utilityfunction” (BEGWELL 2001). Their study considered that consumer always give importance to few advertisement and select some of them through which they Objectives of study: The effect of advertisement on purchasing intention of youth To know behavior of youth and to know the present trends in advertising. To open new path field of research with reference to the topic. Research Methodology: The design (Hypothesis & Questionnaire) The study was exploratory in nature and survey method was used in the study. Sampling Design
Population: All the people within Gwalior city region. Sampling Element: Individual respondent was the sampling element. Sample Size: The sample size of the study was 100 individual.
Sampling Method: Non-probability random sampling technique was used in the study. Data Collection Methods
134
Data was collected on the basis of Self-designed questionnaires Tools Used for Data Analysis & interpretation Graphical representation Method
Results and Findings
For our study we have 56% female respondents and 44 % male respondent.
And segmentation of Age is in 4 categories, from which 76% are in the age group of below 20, and 22% respondentsis in between 20-30, and 2% is from 30-40.
For our study, according to occupation 84% are student, 14% are service class, and 2% are business class, and there is no respondent from households.
135
84% respondents think of advertisement while purchasing a product and 16% could not affected by advertisement.
84% respondents give importance to advertisement but 16% don’t.
96% respondents get influence through advertisement in their shopping trend and only 4% is not.
136
Respondents give high response that advertisement transfer belief and values to society 52%,40 % entertainment and news 8%.
56% respondents go for shopping in one month, 26% respondents in once a week, and 18 % go for shopping twice a week.
137
52% of respondents took interest on repeated advertisement, 22%are not give any response towards it, 14% were get irritated and 12 % change their channel.
The importance of advertisement music is 50%, 46% respondents thought it is very important and left4% think it haven’t any importance.
53% respondents thinkadvertisement as a medium of create brand awareness,14% thought it is not a medium to create the brand awareness, 33% response that sometimes it creates brand awareness.
138
54% respondents getting information about a new product through television, 26% getting it by newspaper, 16% through internet, 4% by magazine and 0% through their peer group.
84% respondents would like to see still image (magazines/news), and left 16% is liked moving image (television and interest).
139
46% respondents get influence by advertisement of product, 14 % is not influence by it, 42% sometimes influence and 12% is rarely have influence opinion by it.
58% respondents thought it always have a necessity in decision making, 34% sometimes felt it is necessary and left 8% thought it is not necessary for decision making
40% respondents recalled music, 20% recalled tag line of advertisement, 4% recalled endorsers, and 36% recalled it through advertisement.
140
The advertisement highlighted 38% product feature, 30% the benefit, 12% thought it highlighted the brand name 8%the company name and 6% thought it highlighted the endorsers and left 6% were the tag line. Conclusion This study suggests that there is an effect of advertisement on purchase behavior of youth. Therefore, it is concluded that youth purchasing affected by advertisement to different gender group and occupation through various attributes of advertisement. References Bovee, C. L., & Arens, W. F. (1992), Contemporary Advertising, USA: Richard D. Irwin. Ayanwale, A. B., Alimi, T., & Ayanbimipe, M. A. (2005), The influence of advertising on consumer brand preference, Journal of Social Science, 10(1), 9-16. Bovee, L.C.V.J. Thill, G. P. Dovel and M.B. Wood (1995), Advertising excellence, McGraw-Hill College. Bagwell, K. (2007), The economic analysis of advertising, Handbook of industrial organization, 3, 1701-1844. Clark, C. R., Doraszelski, U., & Draganska, M. (2009), The effect of advertising on brand awareness and perceived quality: An empirical investigation using panel data, QME, 7(2), 207-236. Etzel, M.J. Stanton. Marketing USA: Irawin /MC –Grew Hill.1997. Latif, Abdul, and Abideen Zainui. (2011), Effect of television advertising un children: A Pakistani perspective, European Journal of Economic, Finance and Advertisement strative science, Issue 30, 38-49. Ozga, S. A. (1960), Imperfect markets through lack of knowledge, The quarterly journal of Economics, 29-52. Stigler, G. J., & Becker, G. S. (1977), De gustibus non est disputandum, The american economic review, 67(2), 76-90.
141
EXPERIENTIAL BRANDING: A TOOL FOR ORGANIZATION DEVELOPEMENT& SUCCESS IN MARKET
Dr. Narendra Parchure Avinash Pawar Abstract Experiential Branding is a process by which brands create and drive interactions with consumers in all aspects of the brand experience to emotionally influence their preferences and to actively shape their perceptions of the brand. Experiential marketing, also called as "engagement marketing," "event marketing", "on-ground marketing", "live marketing" or "participation marketing," These areas of marketing strategy directly engages, invites and encourages consumers to participate in the evolution of a brand. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs, developing a relationship with the brand. Today’s consumers are confronted with countless choices and a multitude of information to consider when they buy products or services. Traditional promotional methods like advertising in magazines or on TV are no longer as effective as before. How can a company help their brand stand out? What will make their brand communication effective? In light of these questions and many others, brand experience has emerged as an innovative and compelling way to build a brand in the minds of consumers. In this paper we will discuss various dimensions of experiential brandling and provide insights to strategical aspects of experiential branding in business in order to discover how this branding activity can be used to build the organizations successfully. Keywords: Experiential Branding, Branding Strategies, Brand Building, Brand Equity Introduction Experiential branding is a process by which brands create and drive sensory interactions with consumers in all aspects of the brand experience to emotionally influence their preferences and to actively shape their perceptions of the brand. Interactions involve communication, brand space, and product and service elements. These elements work together to affect brand equity. Experiential branding, a creative branding process through customer experience, contributes to brand differentiation, esteem, relevance, and knowledge, and therefore is an effective way to build brands. Through interactive technologies, innovative retail
142
spaces, and indirect online brand communication methods, consumers can now see, touch, hear, taste, and smell brands in ways they never could before. Flashy advertising and price-slashing product promotions are often not sustainable methods for brand building. Experiential branding, with the objective of building brand equity, has emerged as a promising and viable alternative. Brand experience can be thought of as sensations, feelings, perceptions, and behavioural responses evoked by brand-related stimuli. The more powerful the experience is, the stronger the brand impression. Brand experience also affects consumer satisfaction and loyalty; it allows the brand to sell products at a premium and to create competitive entry barriers. If a brand event stirs genuine positive emotions within people then they are more likely to associate those emotions with that brand, which is more effective. Consumer Engagement is the ultimate point in which a brand and a consumer connect in order to offer a true experience related to the brand's core values. It is a long term connection that must be enhanced over time. Engagement measures the extent to which a consumer has a meaningful brand experience when exposed to commercial advertising, sponsorship, television contact, or other experience. In March 2006 the Advertising Research Foundation defined Engagement as "turning on a prospect to a brand idea enhanced by the surrounding context". The ARF has also defined the function whereby engagement impacts a brand.
The combination of all interactions with communication, brand space, and product and service elements, make up a customer’s brand experience. The customer will then form a brand evaluation and perception based on these interactions. This is what builds brand equity in the consumer’s mind, and it is composed of four key dimensions: differentiation, relevance, esteem and knowledge. Various experiential branding methods impact different dimensions of brand equity, which must be carefully considered by marketers or brand managers when utilizing these methods. The brand and the "brand experience" are directly taken to consumers through interactive channels of retail, digital and live events. Rather than wait for the consumer to find it, the brand takes itself directly to the consumer with campaigns that resonate on a personal level. This is closely related to the definition of transparent marketing. 143
Transparent Marketing is a strategy used to personalize the content marketed to a customer by engaging them in social media technologies such as blogs, live chat and product ratings. Through these web based technologies, companies are able to provide true transparency to their company and products, good or bad. In addition, they are able to build trusting and lasting relationships with their customers. Engagement Marketing is a very broad term, and purposefully so. It is an insight that human beings are highly social animals and have an innate need to communicate and interact. Therefore, any engagement marketing initiative must allow for two-way flows of information and communication.
Brand Equity Differentiation Process of differentiation of brand
Relevance Proposal appropriatenes s of the brand
Esteem Regard for the Brand
Knowledge Understanding of the brand stands for
Brand Perception Brand Evaluation Communication
Brand Experience
Commercial & Brand space
Product & Service Constituents of Experiential Branding A) Differentiation: Perceived Distinctiveness of the Brand Differentiation is a brand’s ability to stand apart from others, and to gain consumer choice, preference and loyalty. It is the degree to which consumers find a brand unique. A compelling and memorable brand experience can attract customers’ attention and maintain their interest, and therefore contribute to brand differentiation. In recent years, companies like Nokia, Apple, Barbie, and Gucci have opened flagship stores in China to provide more consumer-brand interaction opportunities. The newlybuilt Barbie Store in Shanghai is a 6-floor megastore with a spa, design centre, café and interactive activities designed for girls. It became a hot spot in Shanghai very quickly, with thousands of girls now visiting the store every day. The branded experiences provided by the Barbie store will undoubtedly serve to differentiate the brand from others.
144
Flagship stores are one way that companies can connect and interact with customers to participate in experiential branding. They are also places to display limited edition products and unique service experiences, which can communicate the companies’ culture and brand values in ways traditional media cannot. B) Relevance: Personal Appropriateness of the Brand Relevance refers to how meaningful a brand is to their target consumers. Relevant brands are both appropriate and appealing. Niche and growing brands may choose to focus first on differentiation and then on relevance, whereas leading brands will excel on all four dimensions. Adidas Brand Centre in Beijing is both experiential and meaningful for customers, so it contributes to brand relevance. The retail centre features a range of interactive zones including MI Coach Core Skills, the recently launched MI Originals, mi Adidas, a juice bar, a dedicated 'Urban' area for exhibitions and events, a basketball court on the rooftop, a Concierge Desk and a children’s area. As you can see, there are products and interactions offered for Adidas’ various targeted market segments, ensuring that the customer’s experiences of the Adidas brand are highly relevant C) Esteem: Regard for the Brand Esteem measures the degree to which the target audiences regard and respect a brand— in short, how well it is liked. When companies grow larger and become more mature, brand esteem becomes more and more important. Today, companies often use indirect experiential branding methods to build brand esteem. One way to do this is through the Internet and social networking websites. With the recent popularity of social networking services (SNS) such as Facebook, Twitter, Kaixin001, Renren, and many more, forward-thinking companies place their brand inconspicuously in the pages, games, and posts, of these sites. SNS websites are a new media which stimulate increased interaction with users. In the first half of 2009, Kaixin001 became China’s most popular SNS with over 83 million registered. Brands, media agencies, and organizations have used different approaches to connect with the community and target its netizens. An impressive and representative case is Lohas juice. It successfully promoted its brand in the popular SNS game “Kaixin Garden”. Through this interactive game, the juice brand not only promotes its products, but also portrays a lifestyle and an attitude which influences the customers’ brand perception. D) Knowledge: Understanding of What the Brand Stands For Knowledge determines whether there is a true understanding of what a brand stands for. Brand awareness is a sub-component of knowledge. The level of brand knowledge is a signal of the company’s past performance, as well as a foundation for its further development. Positive and accurate understanding of the brand amongst target 145
consumers results in brand loyalty. However, it is not enough for a brand to tell consumers what their brand means, they have to show them, and what better way to do this than through brand experience. This is what Nokia is doing with its global customer service and experience centre in Shanghai, which opened in August, 2009. The centre provides hardware repair and software services to users of its mobile phones. The Shanghai experience centre is a place for customers to learn more about their Nokia cell phones and experience what Nokia brand stands for. Helping their customers develop a deep and comprehensive understanding of their company will help Nokia consolidate their customer loyalty and brand equity. Online Experiential Tools We believe, people embrace what they create. Advanced economies the values of society and the individual change. At the heart of this is the key issue around identity and belonging. We have always had community. However, in a post-modern world we can have many selves, as we undertake a quest for self-identity. With the help of modern technological tools, we can create a sustainable experiential brand in the market. Blogs: For engagement marketing purposes, companies can share content on their own blogs and participate as a commenter or content provider on relevant external blogs. Hosting a campaign that gives prizes to the readers of external blogs for their participation in some kind of contest is an example of an engagement marketing campaign aimed at external blogs. Social networking sites: Social networking sites (such as Facebook, LinkedIn, and Twitter) are ideal for engagement marketing because they provide a way for people to interact with brands and create a two-way dialogue between customers and companies. Most companies maintain a presence on several of these sites. Webcasts: Differing from internal webcast meetings with a small, specific invitation list, engagement marketing online events are aimed at a much larger and public audience. They are typically available live or on-demand, which allows viewers to view content on their own schedule. Email campaigns: One of the earliest online engagement marketing tools, email marketing requires target audiences to opt-in to directly receive a marketer’s emails. Companies can also encourage individuals to share their messages virally, via the forwarding of emails to colleagues, friends and family. Crowdsourcing: Crowdsourcing sites offer engagement marketing opportunities through their open media contests. Crowdsourcing sites like these generate brand ambassadors as an organic by-product of the crowdsourcing process itself by 146
encouraging users to share their submissions on various social networking sites. By first engaging fans and consumers in the act of shaping the brand identity itself, there is increased brand awareness and development of brand relationships well before launching any official media campaign. Social Experiencial Branding As with any marketing channel, the rampant nature of social media has driven change and will continue to do so."Over the past three years, the biggest development has been the share ability element," says Wyrley-Birch. "A lot of what we’re doing focuses around how we can ensure that the experience is something that a person will want to share with their friends, and almost give a positive endorsement to the brand as a result of that experience." As social media has become a daily part of consumers’ lives, it has enabled experiential to have a longer lifeline, says Marcus Sandwith, managing director at Haygarth. "The actual theory of experiential marketing hasn’t changed at all: it has always been about consumers interacting and connecting with your brand," he explains. "However, the media space has become much more cluttered, and brands have recognised that they can create a unique and valuable experience, a proper interaction between the consumer and brand."Furthermore, Sandwith argues, technology and social media have become enablers for experientialto be recognised as a valid media channel in its own right. "Whether it is by using sophisticated things such as augmented reality, beacons or face recognition, there are technologies that have allowed experiential marketing to move into a whole new world," he says. Indeed, complementing experiential has helped galvanise the appeal of social media to many a marketer, and this in turn has meant that in 2015, experiential will be able to position itself in the centre of the marketing mix. RPM’s managing director Dom Robertson explains: "We believe experiential marketing has been around for years. We simply define it as being when a brand takes an action and then uses that action to help consumers understand its purpose or its product." "In the past, experiential possibly wasn’t considered when brands were looking at their communications strategy," he continues."It was deemed as very event- or sampling-led. People didn’t view that as being pertinent enough to be a key part of a marketing plan – it felt like it was a tactic. However, over the past five or six years, it has very much been understood and recognised that an experiential campaign – or in our language, the actions of a brand – can in fact sit at the absolute heart of a communications platform." Solicitation of Experiencial Branding Experiential branding is the thoughtful application of brand to every point of contact with the market. Beyond business cards and letterhead, experiential branding is
147
combining design disciplines of graphic, architectural, interior, landscape, and industrial to communicate identity, information, and the idea of place. Presentations goes beyond the ordinary to create extraordinary visual branding elements that extend the marketing and communications of non-profits and corporations. Extension and Differentiation in Experiential Branding By extending a brand into all internal and external environments of a space it can promote sensory perceptions of a non-profit or corporation. When your employees understand your vision and mission they are better at self-promotion and are more loyal. Visual keys are an easy way to promote brand awareness on a daily basis. Your clients, visitors and employees will know who you are the moment they enter your campus or open a brochure. Touchpoints are the specific experiential branding contact opportunities to strengthen brand and communicate identity. There are thousands of opportunities each day to contact your market. Taking advantage of all of them will reassure an increase in market share and build brand equity among employees, vendors, clients and visitors. Presentations brings cohesion and innovation to all of the touchpoints, making sure they all work together and deliver the same solid message.
Brand Touchpoints (Image courtesy of "Designing Brand Identity" by Alina Wheeler, C.2006, Source: http://www.p-egd.com)
Competition for recognition is tough and in today’s market extends to the airwaves and cyberspace. A business can increase brand awareness, promote loyalty and differentiate itself from competitors in the market by using experiential branding. Experiential branding makes you stand out from the crowd with a focus on a strong brand message. 148
Experiential branding is a different approach to your business. More than experiential marketing, which is a tactic, experiential branding is a philosophy of business that demands the organization be actualized and all processes aligned to the final customer experience A powerful brand is one that can be more than just seen—it can also be smelled, tasted, touched and heard and is expressed at every touch point. An experiential brand creates a much deeper level of engagement because it creates a complete experience that envelopes its audience. Experincial Attribute Analysis Smell is arguably the strongest of senses. There are more connections between the olfactory regions of the brain to the place where emotional memories are processed than any of the other senses we have. 75% of our emotions are generated by smell (women are more sensitive to smells than men).
Women buy 80% of products sold in the market It's estimated 40% of fortune 500 brands will have a sensory branding strategy 80% of all the impressions we form when communicating with others are nonverbal 75% of buying decisions are based purely on emotion 91% of customers say music has an effect on their shopping behavior 84% of people in a study said they were more likely to buy in a scented room
Theory Discussion Experiential branding is related to and influenced by numerous theories within a range of different marketing disciplines and in this section the most important of these theories will be briefly introduced. Experience Economy: In “The Experience Economy” Pine and Gilmore (1999) suggested that western societies were (andstill are) in the process of evolving from a service economy to an experience economy, characterizedby an increasing demand for staged experiences related to goods and services. They argue thatcompanies in relation to this societal change should change their focus to the selling of experienceswith their products and services as props and a stage, charging admission for participation in theexperience only. Branding Theory: Changing strategic focus towards experience based marketing will be highly influenced by branding theory as the premises for brand (equity) building are the same as for any other type of campaign. Customer Based Brand Equity model (CBBE) and the Brand Value Chain (Keller 2008) can be used to evaluate experiential branding as a brand equity building strategy.
149
Experiential Marketing: In 1999 Schmitt did suggest an experiential approach to creating marketing strategies. However, he put great emphasis on the use of traditional media to create experientially driven advertisements. The use of traditional media is putting ever increasing limitations on the possible effectiveness of campaigns, limiting the potential effectiveness of direct application Schmitt’s work. Event Marketing: In their writings on event marketing, Whelan and 2006a; 2006b) take an experience staging approach to their analysis tactical marketing tool. They provide an analysis oftarget group participate in marketing-events and demonstrate the effectiveness campaigns.
Wohlfeil (2006; of events as a motivations to of experiential
Authenticity: Experiential branding is based on the premise that a company will build brand equity through engaging its target group with real lived experiences at planned events. However, for this to actually be an efficient branding strategy it is essential that the target group perceives coherence betweenthe brand and the content of the event. Brand Judgments and Brand Feelings Brand performance and imagery are evaluated by the customer, forming brand judgments and feelings. Brand judgments are the sum of customer evaluations on all aspects of the brand, both in terms of performance and imagery. In particular four main types of judgments are essential:
Brand Quality Brand Credibility Brand Consideration Brand Superiority
Brand quality naturally refers to the perceived customer value of the brand and is rated in relation to competing brands. Brand credibility describes customer perceptions of the brand in relation to perceived expertise, trustworthiness and likeability (Keller 2001). This aspect of brand evaluation is closely related to the concept of authenticity. In relation to experiential branding campaign planning, this will be a key aspect as customers in this case must perceive not only the brand as being credible/authentic, but also the experience staged by the brand, as these shall be able to merge to build brand equity. Brand Resonance: As brands gain a high degree of salience and present customers with positive aspects of brand imagery and performance, eliciting positive brand judgments and feelings, they have the potentialfor attaining brand resonance with the customer. Brand resonance is according to Keller (2001) divided mainly into four categories with an increasing level of involvement with the brand: Behavioural loyalty, attitudinal 150
attachment, sense of community and active engagement. The presence of customers with a degree of brand resonance is a marker of strong brand equity and should be theultimate goal of marketers (Keller 2008).
Brand Value Chain When marketers create marketing campaigns it is done with an expectation of the investment having a positive effect for the brand and often much emphasis is put on financially measurable effects overlooking the importance of the brand equity building effects. The brand value chain can be used to understand and interpret the effects of marketing investment by tracing the value creation through five value stages This five staged brand value chain is a combination of the four stages from brand value chain brand equity constituting components. This enables the use of behavioural responseeffects to be evaluated in the brand value chain and further it makes a more distinct connection. Maximizing customer mind set effects ensures optimal premises for creating behavioural brandresponse such as trial, repeat purchase, increasing retention and creating loyalty. As such, the behavioural brand response is the unleashing of the brand equity built through mental brand responses, releasing it into cash flow. The effects of the behavioural value stage are influenced bymarketplace condition multipliers. Brand Value Chain will be used to explain how experiential branding can contributeto value creation. Focus will mainly be on the first three value stages as these stages and multipliers are closer, and more directly related to the influence of experiential branding initiatives, whereas effects through the remaining half of the model - market response and economic brand values willbe induced from the earlier value stages Marketing Program Investment
Mental Brand Response
-Product -Communication -Trade -Employee -Other
-Awareness -Association -Attitude -Attachment -Relationship
Program Quality
Behavioural brand Response
Market Performance
Shareholder Value
– Penetration trial – Distribution –Loyalty – Market share- ROI – Retention – Price Premium– Cash Flow – Price Premium – Price Elasticity – Stock price
Market Place Conditions
- Profit
Investors Sentiment
-Clarity
– Competitive Reaction
– Market Dynamics
-Relevance
–Channel Support
–Growth Potential
-Consistancy
– Market Growth
–Brand Contributions
151
Brand Value Chain Conclusion The purpose of this paper has been to provide a means for a possible future validation of the effectiveness of experiential branding through constructing a framework for strategic planning andeffects measurement hereof in relation to maximizing the building of brand equity. Above we concluded that the guide for this strategic planning could realistically be implemented in marketing practice through an evaluation of its coherence with current best practice. Future research seeking to document the potential effectiveness of experiential branding in terms ofbuilding brand equity with both participants and non-participants at events, may hence beconducted. Likewise, this paper may seek to uncover the effects of experiential branding campaigns in relation to the elements the behavioural brand response and market response of the brand value chain. This paper will allow for valid generalizable results as the campaigns planned through the use ofthe guide will be based on the same optimal approach to strategic event content choice, objectivesetting, event composition etc. This will effectively limit the negative effects on results caused bydiffering practices in planning and effect measurement The impact of experiences on brand equity with the brief description of the premises for commercial and marketing experience above provides some clue as to how experiential branding can be employed to build brand equity. It is uncertain how the use of experientially driven marketing will develop in the future, however weexpect to see an increased focus on experiential branding and expect to see more versatilevariations. Based on the discussion of event composition we found that diversifying the experience throughinclusion of more experiential realms strengthens the possible associations created. Further, weargued that the composition of events on one or more should be based on the following:
Sense Feel Think Act Relate
Through this we conclude that to optimize the building of brand equity through event compositionthe company should strive to include as many experiential realms as possible and identify on or morerelating specifically to the event content. References
152
Aaker, David A. and Erich Joachimsthaler (2002), Brand Leadership. London: Simon & Schuster. Belch, George E. and Michael A. Belch (2007), Advertising and Promotion - An Integrated Marketing Cornwell T. B., Clinton S. W. and Donald Roy (2007), Sponsorship-Linked Marketing: Opening the Black Box, Marketing in The 21st century, Volume 4 - Integrated Marketing Franzen. Y., Giep, Y. (1999). Brands & Advertising - How advertising effectiveness influence brand equity, Oxfordshire: Admap Publications. Hair J, Robert B and David O (2006), Marketing Research: Within a Changing Environment, 3rd edition, revised international edition Ed. New York: McGraw-Hill/Irwin. Keller K, Kevin L. (2008), Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 3rd Ed. New Jersey: Pearson Prentice Hall. Keller K, Kevin L (2001), Building Customer-Based Brand Equity, Marketing Management 10(2):14-19. Kinney P, Lance A and Stephen R. (1996), Strategic Implications of Attitude-Toward-the-Ad in Leveraging Event Sponsorships, Journal of Sport Management,10(3):250-261. Malhotra P, Naresh K (1992), Information Load and Consumer Decision Making, Journal of Consumer Research,8(4):419-430. Mittal L, Banwari N. (2004), Public Assessment of TV Advertising: Faint Praise and Harsh Criticism, Journal of Advertising Research, 34(1):35-53. Whelan P, Susan W (2006), Communicating brands through engagement with 'lived' experiences, Journal of Brand Management, 13(4):313-329.
153
IMPACT OF ADVERTISEMENT ON CONSUMER BUYING BEHAVIOUR WITH REFERENCE TO LAPTOP MARKET IN GWALIOR REGION Shaifali Chauhan, Dr. Subeer Banerjee, Archana Jadon Abstract In today scenario we are living in technological world, in which Internet and computer play an imperative role. Lots of research has been done in consumer behaviour. This paper is an attempt to find out the impact of adverstising on consumer buying behaviour. The change in technology on daily basis is resulting into increasing competition in laptop market. Sales of laptop in Gwalior is thriving day by day as city is increasing its size, increase in professions, increased use of technology in studies etc. The present paper highlights the laptop usage in study from student’s point of view. The data collected through selfdesingedquestionnaire.the sample size of study was 100 individuals and non probability purposive sampling was used to collect data. Conceptual Framework Advertisement is the medium of quick the information for customers by different channel, which could be as simple as telling someone the time of day. Television advertisement is a common form of providing information where producer tells a story to others about a real event or something made up. Visual and audiovisual are forms of advertisement that play important roles to take a purchasing decision. In the age of technological advancement, better communication channels are available for advertising which influence the customer buying decision on laptop sector. Enhanced knowledge about communication channel is favourable for practitioners and researchers. Maximum Company used different strategy for advertisement of our products and services to create a centre of attention for customer. In future outlook companies will have to face unique challenges to advertise their product or services because now a day’s consumer choice becomes more sophisticated. In accumulation, without using these channels and major quantity of investment of our budget, in advertisement field there is no company can become a best competitor in market (Hussainy, et al. 2008). Maximum companies are rising with the alliance of mass media like, internet, radio, videos, television, journal, newspaper and erstwhile print and electronic channel. Advertising is the best communication channel to encourage consumer to our products service etc. As we completely aware about that advertisement is the best tool for creating a good image in the mind of consumer regarding any product or services? (Abideen, farooq and latif 2011) The basic purpose of advertising to create brand image in the mind of customer and this brand become a memento for future purchase of product or services (Romaniuk and Sharp 2004). 154
In India Laptop industry becomes more popular from preceding few years and the advertisement in laptop industry play significant role to achieve this status. Therefore, effective advertising source, effectual commercial and customer decision are related to each other. Are people making their decision of purchasing laptop after watching advertisement? It’s true that people are getting attracted by the advertising because of increasing trend and they are purchasing their favourite brand. We get to know at what level consumers are affected by emotional and ecological responses. After examination commercial customer consciousness increases and their joyful, cheerful joy or depression about a fastidious brand and this in sequence influence the purchase intensions. This sector is very commercial in all over the world. As similar as all other countries, in India laptop sector is also rising rapidly day-by-day. There are various brands of laptop are available in India as DELL, HP, SAMSUNG, LENOVO, TOSHIBA, APPLE, HAIER, SONY etc. Consequently, present study evaluates the effective advertising and its influence on consumer’s laptop buying behaviour in India. In this analysis we analyse that How advertisement environment and emotions which get after watching effectual advertisement influence on consumer buying behaviour. This study is quantitative in nature and this study will explore the problem statement and literature review related to dissimilar aspects of the research. Problem Statement–Different medium of advertising is used by laptop company for conveying the product massage to consumer. In internet, the social networking website play important role for advertisement of product. for effecting consumer buying behaviour, the company used to spend enormous fund on their promotional strategies and advertising strategies. But sometimes they didn’t get success from these activates and unable to motivates consumer to buying their product. Consumer Decision Making Decision making is the procedure of choosing connecting two or more alternatives, Consumer decision assembly may be defined as a method of get-together and dispensation information, evaluating it and selecting the best feasible option so as to get to the bottom of a crisis or make a exchange choice. i) Enhance notional structure which increased the ability of decision making of consumer. ii)Doing testing of structural model technique on consumer purchasing activates. iii) Judging the technique of structural model. Literature Review According to Hong and Lerch (2002), they found out that the focus of consumer to their choice influenced by some factors of environment such as advertising factor, psychosocial factor. And consumer selection was based on situations limitation like
155
price. Consumer evaluate the characteristics of product before buying consumer durable product because of scarcity of simplicity to operate it. Kim et al researched that the choice and selection of consumer are based on some proportion like consumer income, product presentation, pricing, networking, etc. The survey recognised additionally the pricing of major value factor related to consumer buying behaviour. Dillon and reif 2003 examined that the factor positively influenced the online buying decision of consumer and have positive impact. According to Cooper and Inovo1996, they propounded that due to previous purchasing, reference and recommendation from family and some friends influences the behaviour of consumer. Malhotra 1986 found out that before purchasing durable product consumer used to collect enough information on related to durable product. The durability of product always involved risk related to long period usage and price increase. Based on the limited literature studies, the following research questions were employed. This study aims to assess consumer behavior and purchase decision on personal computer purchase and includes the main aspects that manipulate consumer behavior for purchasing personal computers. Mr. Thanaphat, Huansuriya 2003 examine the factor which influenced the purchasing behavior of consumer related to laptop. the major factor isage, payment mode, gender, reasonability of laptop, consumer income level, and profession. According to Sutheeprasert 2005he propounded that the purchase of laptop in context of Bangkok, consumer like to used laptop in university campus, internal shop and residential area, withthe purpose of getting entertainment, doing research, and using internet facility. WahidaFarzana 2012 found out that the factor which influences consumer purchasing behavior is psychological factor like motivation, opinion, and approach which going to affect perceived quality, customer loyality towards laptop brand and the information and knowledge about the laptop. Research Objectives Objective of this study is to find the impact of advertisement on consumer buying behaviour. Ho - There is no impact of advertisement on consumer buying behaviour Research Methodology The design (Hypothesis & Questionnaire)
156
The study was exploratory in nature and survey method was used in the study. Sampling Design 3.2.1 Population: All the people within Gwalior city region. 3.2.2 Sampling Element: Individual respondent was the sampling element. 3.2.3 Sample Size: The sample size of the study was 100 individuals. 3.2.4 Sampling Method: non probability purposive sampling method was used in the study. Data Collection methods Data was collected with Self-designed questionnaires of Likert type scale, where1 indicate strongly disagree, 2 indicate disagree, 3 indicate neither agree nor disagree, 4 indicate agree and 5 indicate strongly agree. Data Analysis Reliability test 4.1.1 Reliability test of impact of advertisement The SPSS 18 software was used to compute the reliability test in the current study. Cronbach’s alpha reliability test was applied to check the reliability coefficients of construct used in the current study in respect of impact of advertisement in the area of laptops. Reliability Statistics Cronbach's Alpha Based on Standardized Items .846
Cronbach's Alpha .848
N of Items 15
During reliability analysis we found that, when statistics of items were 15 cronbach’s alpha then the value was .848 Reliability test of consumer buying behaviour The SPSS 18 software was used to compute the reliability test in the current study. Cronbach’s alpha reliability test was applied to check the reliability coefficients of construct used in the current study in respect of consumer buying behaviour in the area oflaptops. Cronbach's Alpha .884
Reliability Statistics Cronbach's Alpha Based on Standardized Items N of Items .884 27
157
During reliability analysis we found that, when statistics of items were 27 cronbach’s alpha then the value was .884. Regression Analysis Impact of advertisement on consumer buying behaviour Linear regression test was applied between advertisement & consumer buying behaviour. Here, advertisement was taken as independent variable and consumer buying behaviour was treated as dependent variable. Model R R Square 1 .223a .050 a. Predictors: (Constant), advertise
Model Summary Adjusted R Square .040
Std. Error of the Estimate 15.33490
The table of model summary indicated the value of R2 which was found to be .050, indicating that advertisement as independent variable explained 50% variance on Consumer buying behaviour as dependent variable. ANOVAb Model Sum of Squares Df 1 Regression 1204.523 1 Residual 23045.587 98 Total 24250.110 99 a. Predictors: (Constant), advertise b. Dependent Variable: CBB
Mean Square 1204.523 235.159
F 5.122
Sig. .026a
The goodness fit for the model was tested using ANOVA Table and the F value was found to be 5.122 at the significant level .026a indicating that the model is showing good fit and appropriate for future prospective. Regression equation is. Y=A+BX Y=68.986+0.223X Where.Y = consumer buying behaviour (dependent variable) X= Advertisement (independent variable) The result of coefficient table, indicated the contribution of independent variable on dependent variable was tested through the beta value .223, which was tested through the t value was found to be 2.263 at .026 level ofsignificance. Hence, the null hypothesis is not accepted which was there is no impact of advertisement on consumer buying behaviour therefore this model implies that independent variable
158
that is advertisement is making an impact on consumer buying behaviour which is dependent variable. Findings The survey represents customers who purchase products on the basis of advertisement of Gwalior city only. The result may not be suitable to generalize for the entire country. A complete list of customers was chosen through random sampling techniques The study can be used by different researchers to evaluate the different factors by different prospective. Sample of only 100 respondents was taken in this study. Further study could be carried out using larger sample to ensure generalization of result. This study has been done on the customers who make purchasing through the use of some specified advertisement. It is suggested that if this study can be replicated by including more users then more variety of results can be obtained. In the study we found that impact of advertisement is contributing significantly in the consumer buying behaviour for laptops. Limitations 1. Inappropriate sample size: In this study, I have taken sample size of only 100 respondents which is not suitable enough as evaluate to the size of the city. If the sample size will be close to 200 or more than this, then we get more perfect result of this research. 2. Lack of awareness: If we talk about attentiveness of people are living in Gwalior region. They are not very much attentive about the laptop and their consequence, because now a day’s maximum number of peoples is from nearby villages so they are not very much aware about the new technology and consequence of the laptop too. 3. Limitation regarding analysis: Due to limited resources and time, a deeper statistical analysis like analysis of variance, rank correlation could not be carried out. 4. Respondents were reluctant to share their experience accurately. 5. Few Customers are hesitating to deliver some information due to the time wasted in the providing the same. 6. Due to time constraints it is not possible to cover vast area. So that survey was limited to nearby in Gwalior region. 7. Findings of the study are on the basis of the information provided by the respondents. References
159
Aaker, J., Fournier, S., & Brasel, S. A. (2004), When good brands do bad, Journal of Consumer research, 31(1), 1-16. Bansal, H. S., & Voyer, P. A. (2000), Word-of-mouth processes within a services purchase decision context, Journal of service research, 3(2), 166-177. Computer Lab Management (CLM). Student Survey - Laptop Use - Winter 2005. Chompu-inwai, R., & Doolen, T. L. (2006, October), A methodology for studying the impact of laptops in engineering classrooms, In Frontiers in Education Conference, 36th Annual (pp. 20-25). IEEE. Doh, S. J., & Hwang, J. S. (2009), How consumers evaluate eWOM (electronic word-of-mouth) messages, CyberPsychology & Behavior, 12(2), 193-197. Hooi Ting, D., Fong Lim, S., Siuly Patanmacia, T., Gie Low, C., &Chuan Ker, G. (2011), Dependency on smartphone and the impact on purchase behaviour, Young consumers, 12(3), 193-203. Einhorn, H. J., & Hogarth, R. M. (1981), Behavioral decision theory: Processes of judgment and choice, Journal of Accounting Research, 1-31. Fried, C. B. (2008), In-class laptop use and its effects on student learning, Computers & Education, 50(3), 906-914. Grimes, D., & Warschauer, M. (2008), Learning with laptops: A multi-method case study, Journal of Educational Computing Research, 38(3), 305-332. Gulek, J. C., & Demirtas, H. (2005), Learning with technology: The impact of laptop uses on student achievement, The journal of technology, learning and assessment, 3(2). Herr, P. M., Kardes, F. R., & Kim, J. (1991), Effects of word-of-mouth and product-attribute information on persuasion: An accessibility-diagnosticity perspective, Journal of consumer research, 17(4), 454-462. Hovland, C. I., Janis, I. L., & Kelley, H. H. (1953), Communication and persuasion, psychological studies of opinion change. Hill, R. P. (1988), The Effects of Advertisements on Consumers' Mood States: An Interactive Perspective, Advances in Consumer research, 15(1). Hartman, K. B., Hunt, J. B., & Childers, C. Y. (2013), Effects of eWOM valence: examining consumer choice using evaluations of teaching, Journal of Behavioral Studies in Business, 6, 1. Lay-Yee, K. L., Kok-Siew, H., & Yin-Fah, B. C. (2013), Factors affecting smartphone purchase decision among Malaysian Generation Y, International Journal of Asian Social Science, 3(12), 2426-2440. Lo, L. Y. S., &Lin, S. W. (2010, November), The effect of price presentation, sales restrictions, and social networks on consumer EWOM intention, InAdvanced Information Management and Service (IMS), 2010 6th International Conference on (pp. 112-117), IEEE. Kotler, P. (2003), Marketing Management.11 th Ed. New Delhi: Prentice Hall of India Pvt. Ltd. Kothari, C.R. (1985), Research Methodology.2 nd Ed. Delhi: New International (P) Ltd.,1-10.
160
Kay, R. H., & Lauricella, S. (2011), Unstructured vs. structured use of laptops in higher education, Journal of Information Technology Education,10(1), 33-42. Lee, J., Park, D. H., & Han, I. (2008), The effect of negative online consumer reviews on product attitude: An information processing view, Electronic commerce research and applications, 7(3), 341-352. Malhotra Naresh K (2000), Marketing Research, (4 thEdition), Pearson Education. Mellon, C. Laptops in Classrooms Isolate Students, Carnegie Mellon University's: Pittsburgh. Moses, P., Khambari, M., Nida, M., & Wong, S. L. (2008), Laptop use and its antecedents among educators: a review of the literature, European Journal of Social Sciences, 7(1), 104-114. Na Young Jung, Soyoung Kim, (2011), Determinantsof Electronic Word-of-Mouth: Meta- Analysis of Quantitative Research, The University of Georgia. O'Reilly, K., & Marx, S. (2011), How young, technical consumers assess online WOM credibility, Qualitative Market Research: An International Journal, 14(4), 330-359. Punyatoya, P. (2011), How brand personality affects products with different involvement levels, European Journal of Business and Management, 3(2), 104-107. Ray, S. (2009), Building a Model for Purchase Decision of Laptops and Price-Performance Analysis of Major Players, IUP Journal of Management Research, 8(1), 7. Shapley et al., 2010. Laptop use and students’ achievement, Literature Review (2010), Digital Education Revolution NSW, PP 13. Shah, A. and Dalal, A. (2009), The Global L aptop Industry: Industry Overview and Analysis. Vuojärvi, H. (2010) Domestication of a laptop on a wireless university campus: A case study. Australasian Journal of Educational Technology 2010, 26(2), 250-267. Awad, N. F., & Ragowsky, A. (2008), Establishing trust in electronic commerce through online word of mouth: An examination across genders, Journal of Management Information Systems, 24(4), 101-121.
161
Section III Customer Relationship Management
AN EMPIRICAL APPROACH ON THE CHANGING ATTITUDE OF CONSUMERS BY USING ONLINE COMMUNITIES IN NON-METRO CITIES Dr. Utkal Khandelwal Deependra Singh Abstract Online Community plays an important role for companies in supporting their products and services with a value-added service option. The success of anonline community depends on the behavior of its members. Now consumers are aware about online communities. They are using these communities for various purposes. Now customers prefer online shopping more than brick and mortar stores shopping. Many consumers are using these communities as education portals. Now consumers’ behavior and attitude of non-metro cities towards online communities have been changed. They have positive attitude towards various online communities. This paper is about the changing behavior and trends of consumer. This paper is designed to understand the motivation of consumers to actively participate in and care for these communities. The formation and development of anonline community depend on its users. The shape of online community is based on the interest of the members of online community. Online communities attract users to be a part of activities and share feeling, expression and knowledge to others via internet that support members in retaining and increasing the social activities. In this paper, we explain the consumer behavior towardsonline community servicesin NonMetro Cities. Keywords: Consumer, Online Community, Consumer Behaviour, Attitude Introduction The term community originates from the Latin root word communis, which can be formed by pairing the following words (Fernback & Thompson, 1995). Cum: meaning together and munus: meaning obligation. Thus, a community can be seen as a group in which individuals come together based on an obligation to one another or as a group in which individuals come together to be one in purpose. Online communities, which allow people to interact with others, bring back a sense of social belonging to the online environment. At present online community plays an important part to develop online environment and provide satisfaction to consumer. Online Community has changed the way of how consumers and marketers communicate. Rheingold (1993) and Singh & Cullimnane (2010) defined “online community also known as social networks, as aggregations or groups, of social, interactive, like-minded folks, that emerge on the Internet when enough people interact on a common topic long enough, eventually forming a web of Online personal relationships in cyberspace.” 163
Online Community is a form of electronic communication through which consumer creates online communities to share information, ideas and personal messages globally through internet. Social Networking has been the predecessor of Online Worlds. The first social networking application has been SixDegrees.com that was launched in 1997. After that, many other social web sites and applications were developed like Twitter, MSN, YouTube and Facebook, etc. The members of such online community are increasing day by day. Now, numbers of users are accessing online community websites. Most of the active Internet consumers are using online communities in various perspectives. Consumers are now sharing their personal experiences and impressions about the brand or products also through online community network via internet. Online communities can be divided into two types: commercial (brand community) and non-commercial. Non-commercial communities are operated for the purpose of information exchange, sharing knowledge express ideas for establishing a network. Commercial community (brand community) is a special community that is operated to establish a strong relationship between marketer and customer and retain the image of brand of product or services. Due to the increasing interest of Internet users on online communities, a number of web-based companies have started building online communities as a mean for distributing information about products and services. Online communities have changed the way by which a user interacts to others. The way of social interaction among people has been changed by using online communities’ networks. Online community provided a communication platform and a social network through which people can interact with one another in cyber spaces or online world to obtain the information his/her area of interest. The popularity of online communities has opened a new avenue for e-vendors to enhance website visibility and generates web traffic (Hagel and Armstrong, 1997). In India, the number of people actively using Online Communities is about 66 million but it is growing faster with the availability of cheaper broad band connection and internet enabled handsets at very low prices. Social media is transforming the contours of social interaction. Emotions like love, friendship, family bonding, intimacy and language and are finding various platforms and forms of expression. At this time, many new applications of online community have been developed like Whatsapp, LinkedIn, Viber, Hike, Telegram, Line etc.
164
Bar Diagram Showing Growth Size of the Adult Users of Social Networking Sites in India, 2012-13 (In Percentage) Source: Pew Research Centers Internet Project Tracking Surveys 2012-13 Literature Review Vinerean et al. (2012) explains the effects of social media marketing on online consumers’ behavior. They explain consumer behavior on the basis of factors extracted by varimax rotation. Four factors were extracted and entitled as Expressers and informers, Engagers, Networkers and Watchers and Listeners. Vidal M.P. & Pinero M.C. explain the time of virtual communities with Facebook, Tuenti and Twitter. Thurau T.H. et al (2004) explain about the motivation of consumers to use internet. Rothaermel F.T. & Sugiyama S. give an overview about virtual communities and commercial success of TimeZone.com. It explains that 55% of respondents made a purchase via TimeZone.com. Valck K.D. et.al (2009) explain the consumer behavior towards virtual communities as a marketing perspective. It gives an insight about the effect of virtual communities on consumer decision making. In this paper it is said that online communities present real opportunities for marketers and managers. Pentina I. et.al (2008) explain the role of virtual communities as shopping reference groups. They find and suggest that virtual communities that can fulfill their members’ social needs have a higher potential to influence members’ shopping preferences and may present opportunities for businesses. Lyu J.W. (2012) explains the role of sense of community in online brand social networking sites. Gul M.S. et.al (2004) explains about strong relationship of social media with consumer buying behavior. Ioanas E. & Stoica I. (2014) explains the impact of social media on consumer behavior. Blanchard A.L. & Markus M.L. (2002) explains the belongingness of consumers towards virtual communities. Research Methodology The target population for the study comprised of citizens of various age groups who were students, businessman, housewives and professionals of Mathura and Agra region. To know about the behavior of consumers towards online community, the
165
questionnaires were given to 230 individuals, out of whom 216 individual filled up the questionnaires. With this figure, we had response rate of 93.91%, which seems to be quite impressing. The objective of the research is to identify factor underlying consumer behavior towards Online Community. For analysis we create 21items (Annexure) with some reference of a sample questionnaire given by “JAEJIN LEE”. The questionnaire hadtwo demographic (gender & age) and 21Online community related questions. Data were collected byusing 5 point likert scale (5=strongly agree, 4 =agree, 3 =neutral, 2= disagree, 1= strongly disagree). To check thescale reliability Chronbach’s α was used. The value of Chronbach’s α was 0.827. For identification of underlying dimensions, Factor analysis technique (Principal Component Analysis with Varimax rotation) was used. To identify whether the scale items were suitable for Factor Analysis or not we relied on two statistical tests: one is Bartlett’s test of Sphericity and another one was Kaiser-Meyer Olkin (KMO) test. Bartlett’s test of sphericity was used to check scale items correlation. As for factor analysis the scales items should be correlated to each other, therefore to makesure about the correlation among scale items this testwas used. Bartlett’s test of sphericity hypothesizes that the correlation matrix of the scale items is unity matrix (H0: Scale items are not correlated significantly with each other), where as the KMO test was used to check the sample adequacy to conduct factor analysis. A high valueof KMO statistics (0.5 to 1) indicates appropriateness of factor analysis. KMO value below 0.5 is not acceptable; it should be above 0.5 for factor analysis. Determining the number of factors to be extracted for the analysis was guided by Eigen value criteria. Eigen value≥ 1was used for determining the number of factors (Sharma, 1996). Model’s acceptability was based on two criteria (Schene, Wijngaarden, and Koeter, 1998). One criterion is that each variable in a factor should have loading of ≥0.5, and another one is that variable should have less than ≤ 0.4 loading with other factors. To assess the consumer behavior towards online community, arithmetic mean was calculated for every element of the scale, which was based on 5 point Likert scale. There after a grand average of all the scale elements was calculated, a mean value between 2.5 to 3.4 represents a neutral attitude, mean value between 3.5 and 5.0 represents a positive attitude while a mean value between 2.4 and 1.0 represents a negative attitude (Manoah, Indoshi, & Othuon, 2011). Collected data were analyzed by using SPSS software. Pie Charts are showing information about respondents’profile. 56.48 % of the respondents were male and 43.52% respondents were female in the present study. Additionally, 53.24% respondents were below 25 years, 20.83% were between 25 - 40 yrs, and 25.93 % were above 40 yrs respectively.
166
The grand mean of scale items is 3.78, whichrepresents a positive attitude of consumers towards online community. It implies that nowadays people are having positive attitude towards online community which shows an impressive exercise in India. Before conducting factor, we need to first check whether factor analysis can be applied on the concerned data set ornot. These tests are just like qualifier test for conducting factor analysis. These tests are KMO test and Bartlett’s test of sphericity. From Table, the value of KMO test is 0.783 (Table-1), which is above 0.5. The KMO value indicates the adequacy of sample size for conducting factor analysis. KMO value, which exceeds the level of 0.5, implies that the existing sample size is appropriate for conducting factor analysis. While implementing factor analysis one of the dominant condition is that variables should be adequately correlated to other, to make sure this degree of correlation Bartlett’s test output is very significant. In the study, Bartlett’s test of sphericity implies the rejection of null hypothesis of correlation matrix is unity matrix, which represents that scale items are adequately correlated to other items. Based on outcome of these two tests it is obvious that factor analysis is an appropriate tool for analyzing data. KMO and Bartlett's Test (Table-1) Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig.
.783 1064.733 210 .000
To extract the factors, principal component analysis with varimax rotation was used. The result of extraction generates four factors; by following Eigen value ≥ 1. The total variance explained by these factors was 56.108 % (Table-2). (Table-2) Total Variance Explained Component Initial Eigenvalues Total %
Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings of Cumulative Total % of Cumulative Total % of Cumulative
167
Variance % Variance 1 4.820 22.954 22.954 4.820 22.954 2 1.850 8.811 31.765 1.850 8.811 3 1.508 7.180 38.945 1.508 7.180 4 1.349 6.425 45.370 1.349 6.425 5 1.227 5.844 51.213 1.227 5.844 6 1.028 4.894 56.108 1.028 4.894 Extraction Method: Principal Component Analysis.
% 22.954 31.765 38.945 45.370 51.213 56.108
2.591 2.272 2.040 1.810 1.614 1.454
Variance 12.340 10.821 9.716 8.621 7.684 6.926
4
5
% 12.340 23.161 32.877 41.499 49.182 56.108
Table-3 (Extracted Factors) Extracted Factors Variables
Component 1 2 objective .627
I use this community to obtain information in my area of interest. I use this community to express my knowledge. .703 I use this community to meet people who have .743 same interests. I often consult others in the Online community to .678 help choose the best alternative available I use this community to get information from .567 experts. Using Online community, I am always aware about international and national news or issues Online Communities help me to become skillful in the area I use this community to check or post new announcements I have no need of more technical skills to use this Online community Online communities are easy to use for a user I spend average half an hour in a day for using this community I feel empty when I do not use this community website for more than a week. I frequently gather information from the Online community about a product/service before I buy I use this community because I enjoy participating in community’s chat groups/discussion forum. This community provides enough information that I need to know. I use this community to pass the leisure time I use this community to express the bad experience on the specific issue I often talk about this community to my family and friends. Online Community is a cheaper medium for communication I use this community to build up strong network. In this community, I can easily find people that I
168
Mean 3
6 3.54 3.64 3.72 3.55 3.81
.709
3.72
.806
3.58
.677
3.76
.574
3.61 .612 .816
3.98 4.03
.700
3.79 .621
3.68
.599
3.81
.475
3.75
.622 .475
3.78 3.26 .626
3.94
.662
3.87 .773 .692
4.41 4.04
want to know from this community.
In Table-3, six factors are created on the basis of data collection. The first factor consists of five items, i.e. I use the community to obtain objective information in my area of interest, I use this community to express my knowledge, I use this community to meet people who have same interest, I often consult others in the Online community to help choose the best alternative available, I use this community to get information from experts, grouping of these items in one factor implies that majority of respondents agreed that they use Online community for exchanging the relevant information from one person to another. Second factor consists of four items, i.e. Using online community, I am always aware about international and national news or issues, online Communities help me to become skillful in the area, I use this community to check or post new announcements, I have no need of more technical skills to use this online community, grouping of these items in one factor implies that majority of respondents agreed that online communities help them to increase the awareness about various issues globally. The third factor consists of three items, i.e. online communities are easy to use for a user, I spend average half an hour in a day for using this community, I feel empty when I do not use this community website for more than a week, grouping of these items in one factor shows the eagerness of users to use online communities. Majority of respondents agreed that online communities are user-friendly. The fourth factor consists of five items, i.e. I frequently gather information from the online community about a product/service before I buy, I use this community because I enjoy participating in community’s chat groups/discussion forum, This community provides enough information that I need to know,I use this community to pass the leisure time, I use this community to express the bad experience on thespecific issue, grouping of these items in one factor implies that majority of respondents use online communities to gain relevant and effective information. It shows that online community is a tool for communication and sharing ideas from one person to others. The fifth factor consists of two items, i.e. I often talk about this community to my family and friends, online Community is a cheaper medium for communication, grouping of these items in one factor implies that majority of respondents agreed that online communities are cheaper source to connect with family and relatives. The sixth factorconsists of two items, i.e. I use this community to build up strong network, in this community, I can easily find people that I want to know from this community. Grouping of these communities in one factor implies that majority of respondents agreed that online communities are effective tool for society to build up social networking among people.
169
Inthis regard, we have given name to the factors as, Expressive, Informative, Userfriendly, Communicative, Economical and Strong networking. Conclusion The outcome of factor analysis identified six underlying factors, Expressive, Informative, user friendly, Communicative, Economical and Strong networking. The total variance explained by the extracted factors was 56.108. Habing (2003) argued that any decent model of extracted factors should extract at least 50% variance in the variables. This study justified the fact that online communities are special and better source of communication. After conducting factor analysis, we conclude that today many consumers are using online communities to build up strong network. They are using it to express the knowledge and gain the information globally in various perspectives. Consumers have positive attitude towards online community. Many online communities are being created and developed by various companies. By this organizations and various companies are promoting e-marketing. Present days, this is an emerging subject in marketing. References Bala, K. (2014), Social Media and Changing Communication Patterns, Global Media Journal, 3, ISSN 2249 – 5835. Blanchard, A.L., & Markus, M.L. (2002). Sense of Virtual Community-maintaining the experience of belonging. Proceedings of the 35th Hawaii International Conference on System Sciences. Gul, M.S., Shahzad, H., &Khan, M. I. (2014), The Relationship of Social Media with Fashion Consciousness and Consumer Buying Behavior, Journal of Management Info 2(1), 24-45. Gupta, S., & Kim, H.W. (2004), VC Concepts, Implications and Future Research Directions.Proceedings of the Tenth Americas Conference on Information Systems, New York. Habing, B. (2003). Exploratory Factor Analysis. Retrieved from http://www.stat.sc.edu/~habing/courses/530EFA.pdf Huang, L.T., &Farn, C.K. (2009). Effect ofOnline Communities on Purchasing Decision-Making: The Moderating Role of Information Activities.Retrieved from http://aisel.aisnet.org/pacis2009/55. Ioanas, E. & Stoica, I. (2014). Social Media and its Impact on Consumer Behavior. International Journal of Economics Practices and Theories, Vol. 4, No. 2, Special issue on Marketing and Business Development, e-ISSN 2247-7225. Lee, J. (2009), Effects of Online Brand Community on Brand Loyalty: A Uses and Gratifications Perspective, Retrieved from http://etd.fcla.edu/UF/UFE0024618/lee_j.pdf. Lyu, J.W. (2012). The Role of Sense of Community in Online Brand Social Networking Sites.Tennessee Research and Creative Exchange, University of Tennessee, Knoxville. Manoah, S. A., Indoshi, F. C., & Othuon, L.O. (2011). Influence of attitude on performance of students inmathematics curriculum. Educational Research, 965-981.
170
Pentina, I., Prybutok, V.R., &Zhang, X. (2008), The Role of Online Communities as Shopping Reference Groups, Journal of Electronic Commerce Research, 9(2). Rothaermel, F.T., Sugiyama, S. (2001), Online internet communities and commercial success: individual and community-level theory grounded in the typical case of TimeZone.com, Journal of Management 27, 297–312. Schene, A.H., Wijngaarden, B.V., & Koeter, M.W. (1998). Family care giving in Schizophrenia: domains and distress. Schizophrenia Bullet, 609-618. Sharma, S. (1996). Applied Multivariate Techniques.Canada: John Wiley & Sons, Inc. Somashekharappa, C.A., & Biradar, N. (2014), The Emergence of Online Communities in India – Role of Media Social Networking, Social Research Foundation, 2(1), 23-39. Taylor, R.L., & Magee, T.L. (2010), Online Community management and measurement for goal-centric outcomes, Advances in Business Research, 1(1), 210-223. Tsai, Y.H. (2011). Modeling Consumer’s Trust in Blog based on Online Community Characteristics. Advances in information Sciences and Service Sciences (AISS), Volume3, Number9, DOI: 10.4156/AISS.vol3.issue9.13. Vidal, M.P., & Pinero, M.S. Facebook, Tuenti, Twitter: Time To Move For With Online Brand Communities, Retrieved fromhttp://neopublicitat.wikispaces.com /file/view/ FACEBOOK, + TUENTI,+TWITTER+TIME+.pdf. Wiertz, C., Ruyter, K.D., &Streukens, S. On The Role of Normative Influences in Commercial Online Communities, Retrieved from http://arno.unimaas.nl/show.cgi?fid=412. Wu, J.J., Chen, Y.H., & Chung, Y.S. (2010), Trust factors influencing Online community members: A study oftransaction communities, Journal of Business Research, 63,1025–1032. Zhang, Y., &Hiltz, S.R. (2003), Factors That Influence Online Relationship DevelopmentIn a KnowledgeSharing Community, Ninth Americas Conference on Information Systems. ANNEXURE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
I use this community to obtain objective information in my area of interest. I use this community to express my knowledge. I use this community to meet people who have same interests. I often consult others in the Online community to help choose the best alternative available I use this community to get information from experts. I often talk about this community to my family and friends. I frequently gather information from the Online community about a product/service before I buy. I use this community because I enjoy participating in community’s chat groups/discussion forum. This community provides enough information that I need to know. I use this community to pass the leisure time. I use this community to express the bad experience on the specific issue. I use this community to build up strong network. In this community, I can easily find people that I want to know from this community. Online Community is a cheaper medium for communication. Using Online community, I am always aware about international and national news or issues. Online Communities help me to become skillful in the area. I use this community to check or post new announcements.
171
18. 19. 20. 21.
I have no need of more technical skills to use this Online community. Online communities are easy to use for a user. I spend average half an hour in a day for using this community. I feel empty when I do not use this community website for more than a week.
172
TECHNOLOGICAL INNOVATIONS IN DELIVERING CUSTOMERS SERVICES (A MODERN APPROACH FOR SUSTAINABLE BANKING IN INDIA) Dr. Shalini Dubey Kanika Verma
Abstract In today’s world, the service sector is on the edge of the technology. For the financial sector, IT is not only an indispensable part, but also acts as an important facilitator for the transformation of conventional banking into modern banking. Increasing use of technology has become a key area in banks, which result in the automation of the operating system of banks, facilities and services provided to customers eventually at lower cost and within a time ambient. In this study, an attempt has been made to look insight at the technological innovations in banking industry and its growth and trends. This study opts the way of analytical research based on secondary data which has been collected from published databases of RBI. Widely used technological services like ATM, ECS, NEFT, Credit Cards, and Debit Cards etc. have been selected for this study. This paper concludes with a discussion of the sustainable banking embraced with different technological factors. Keywords: Indian Banking, Technological Innovations, Customer Services, Sustainable Banking. Introduction “Customer is Always King of Every Bank Technology is Pioneer of Every Bank’s” In India, there are several sectors which contribute to its economic growth, Services sector has been a major contributor to India’s GDP and growth (Bhattacharya and Mitra 1990), among all banking industry is the most contributing industry due to mass population.In the past years, the banking sector in India has experienced a substantial transformation from conventional banking to modern bankingdue of inclusion of information technology (IT).It has made rapid reformsand regulation to cope up with new competitive business environment. Today, banks are not merely the financial institution they are also responsible for sustainable development of an economy. Information Technology has emerged as one of the principle driving force for sustainable economic growth in banks. In the mid 1980s, technological innovation in banking sector has altered the way of our life and affects the banking operations too. Being the facilitator of growth, technology has changed the way of providing banking services and helps in increasing productivity, profitability and competitiveness in the 173
banking industry. Therefore, technology has become a key challenge for the Indian banking industry. Efficient use of technology has a multiplier effect on growth and development. It not only enhances the operational efficiency of banks but also serves to customers in better way. The aim of today’s banking is not only to satisfy customers but also to retain them for a long term by providing technology-based innovative services. Due to electronic mode of services, Banks are now accessible 24×7 and these services are just a click away. This study is an attempt to justify theoverall efficiency of banks in terms of quality improvement and variety of banking services due to technological inclusion. At presently, banking is not related to profit-profit-profit but it has shifted to planetpeople-profit orientation for sustaining in a long run. Banks are contributing in long term sustainable development by adopting green or a paperless banking which has accelerates the operational and functional system of banks by replacing the daily paper services with scan and electronic delivery. The basic functions of banking services are same but the way in which banking services are provided has transformed. The numbers of green technologies are ruling the functional areas of Indian banking industry.Many eco-friendly services like ATM, ECS, NEFT, Credit Cards, Debit Cards and many more are adopted, so that it can reach the each and every section of society and as well as lead to sustainable development of an economy to the great extent.Implementation of online services or technological innovation in banks can also lead to Gaining competitive advantage, customer convenience, Maintain customer relationships, Helps in acquiring new customers, Decreased operational cost, Improved efficiency, Reduced time in processing the transactions, Reduction in Manual Errors, Easier introduction of new products which ultimately lead to improve banking performance.“Berger &Wharton Financial Institution Center (2003) has suggested that overall productivity increases in terms of improved quality and variety of banking services due to induction of technology in banking sector”. Important technological innovations of banking sector in India:
Arrival of card-based payments- Debit (ATM), Credit card late 1980s & 1990s. Introduction of Electronic Clearing Services (ECS) in the late 1990s. Introduction of Electronic Fund Transfer (EFT) in early 2000s. Introduction of RTGS in March 2004. Introduction of National Electronic Fund Transfer (NEFT) as a replacement of Electronic Fund Transfer/Special Electronic Fund Transfer in 2005/2006.
Review of literature There are number of studies have been conducted related to technological developments in banking industry which has provided significant knowledge and base for the study. Some relatedreviews of those studies have been mentioned below:
174
Jeyakumar (2015) analyzes the technological development of schedule commercial banks in India, has mention that there is a tremendous growth of technology based services and products in banking sector. Malik (2014) analyzes how technology has transformed the image of banking in India and also highlights the benefits and challenges due to technological inclusion in banking industry in India.Dash, Mittal, Jadaun (2013) has said in their study that technology is one of the most contributing factor towards fundamental revolution in banking sector in India.Lal&Saluja (2012) haveanalyzed the various parameters such as computerization of branches, ATMs, transaction through retail electronic payment method etc. they conclude that in the coming years, e-banking will not be accepted but preferred by all the customersin all ways.Sawant (2011) found that information technology not only improves the internal process but also increases the services and facilities of Indian banking sector. Objective In this study, an attempt has been made to look insight the trends and growth of various technological innovations that have contributed to sustaining banking in India. Research methodology & database This study opts the way of analytical research to analyze the trend and growth of services made byScheduled Commercials Banks in India after the adoption of technology. This research is based on secondary data which has been collected from published databases of RBI. Descriptive Statistical tools such as Simple Growth Rate, Percentages and Compound Annual Growth Rate (CAGR) is calculated in order to find out growth rate year-on-year (Y-O-Y). Widely used technological services like ATM, ECS, NEFT, Credit Cards, and Debit Cards etc. have been selected as the base of the study and discussed further in the study. Analysis of technological innovations - its growth & trends (i) Automatic Teller Machines (ATMS) ATM has become the most popular and widely used delivery channel throughout the entire world. Initially, it was developed as a cash dispenser but later on it provides funds transfers, deposits of cheque, paying bills, balance enquiry etc. ATM is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and carry out other financial and nonfinancial transaction without the need of actually visits the bank branches. In addition to cash dispensing, ATMs is may offers other services/ facilities to banks customers. Some of these services include:
Account information 175
Cash deposits Regular bills payments Mini/short statements PIN change Request for cheque book Table 1: Growth Rate of ATMs (As on year ended March) YEAR
NUMBER OF ATMs
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
17642 21147 27088 34789 43651 60153 74505 95686 114014 160055 181398
GROWTH RATE (%) (Year-On-Year) 19.87 28.09 28.43 25.47 37.80 23.86 28.43 19.15 40.38 13.33
Source: RBI (Growth Rate: Self Computed) Table 1 indicates that there has been recorded a consistent growth in the ATMs of ScheduledCommercial Banks in India for the period of 2004-05 to 2014-15. Total number of ATMs has been increased from 17642 to 181398. The compound annual growth rate is 26.24%. In the initial years, the ATMs has been adopted at an increasing rate due to few alternatives were there at that times but now a time multiple way of performing banking transaction are available like Mobile Banking, Internet Banking etc. which is might be responsible for the steady growth rate of ATMs in the recent years. The consistent growth of ATMs indicates that customers do not want to go bank branches for their day to day banking transactions and feel comfortable in every sense about the ATM use. (ii) ECS - Electronic Clearing Services The Electronic Clearing Service (ECS) is introduced by the RBI in 1995. It is an electronic mode of transfer of funds from one bank account to another bank account that is repetitive and periodic in nature using services of clearance houses. The service is for companies and government department to make or received large volume of payments, rather than for fund transfer by individuals. It is used by institution for making bulk payment of amounts towards distribution of dividend, interest, salary, pension etc. Primarily, there are two variants of ECS:
176
ECS Credit
ECS (CREDIT) is used by an institution for affording credit to a large numbers of beneficiaries by raising a single debit to an account, such as dividend, interest, salary payments, pension etc. ECS Credit provides an alternative method of facilitating bulk and repetitive payments transaction without the need for handling issuing papers instruments. It also improves the payment efficiency and provides better customer services. Table 2: Growth Rate of ECS Credit (As on year ended March) Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Number (Million) 20.32 40.05 44.22 69.02 78.37 88.39 98.13 117.3 121.5 122.2
Growth Rate (%) (Year-On-Year) 97.10 10.41 56.08 13.55 12.79 11.02 19.54 3.58 0.58
Amount (Billion) 102.28 201.8 323.24 832.33 1822.22 974.87 1176.13 1816.86 1837.84 1771.3
Growth Rate (%) (Year-On-Year) 97.30 60.18 157.50 118.93 46.50 20.64 54.48 1.15 3.62
Source: RBI (Growth Rate: Self Computed) Table 2 indicates the growth rate of number and amount of ECS (credit) of SCBs in India. In the study period of 2003-04 to 2012-13, there has been a recorded an impressive growth in number as well as in amount of ECS (credit) transactions which has been increased from 20.32 million to 122.2 million in number of transactions and it rises from 102.28 billion to 1771.3 billion in amount of these transactions. The compound annual growth rate of volume is 22.05% and for amount, it is 37.28%. It is evident from the growth rate of ECS credit transactions that institutions are availing consistently these Services for affording credit to a large number of beneficiaries because it is saving time, stationary and cost in a very big way, beneficiary need not to visit the bank for depositing any paper, the chance of fraud & loss/ theft of physical instruments has been avoided. ECS Debit ECS (DEBIT) is used by an institution for raising debts to a large number of accounts maintained with bank branches. It is useful for payments of utility bills such as telephone, electricity, water bills, insurance premium, loan installment repayments, mutual funds etc. that are periodic or repetitive in nature and payable to the user institution by large number of customers etc.
177
Table 3 indicates the growth rate of number and amount of ECS (debit) of SCBs in India. In the study period there has been a recorded a perpetual growth in number as well as in amount of ECS (debit) transactions which has been increased from 7.87 million to 176.5 million (in case of number) and 22.54billion to 1083.1 billion (in case of amount). The compound annual growth rate of volume is 41.28 % and for amount, it is 53.76%. It is evident from the growth rate of ECS (debit) transactions make the payment system less time consuming, 24×7 payments facility of utility bills, no need to go to collection centre for making such payments. Table 3: Growth Rate ofECS Debit (As on year ended March) Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Number (Million) 7.87 15.3 35.96 75.2 127.12 160.05 149.28 156.74 164.74 176.5
Growth Rate (%) (Year-On-Year) 94.41 135.03 109.12 69.04 25.90 6.73 5.00 5.10 7.14
Amount (Billion) 22.54 29.21 129.86 254.41 489.37 669.76 695.24 736.46 833.55 1083.1
Growth Rate (%) (Year-On-Year) 29.59 344.57 95.91 92.35 36.86 3.80 5.93 13.18 29.94
Source: RBI (Growth Rate: Self Computed) (iii) NEFT (National Electronic Fund Transfer) With effect from 21 November 2005, RBI introduced NEFT system for facilitating one to one funds transfer requirements of individual and corporate. It is one of the most prominent nation-wide payment systems of India. It is an efficient, secure, economical reliable and expeditious system of fund transfer in the Indian banking industry. It is a paperless system of transferring funds. The maximum limit of transfer fund is Rs. 200000. Table 4: Growth Rate of Neft (As on year ended March) Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Number (Million) 0.82 2.55 3.07 4.78 13.32 32.16 66.34
Growth Rate (%) (Year-On-Year) 210.98 20.39 55.70 178.66 141.44 106.28
178
Amount (Billion) 171.25 546.01 612.88 774.46 1402.26 2519.56 4095.07
Growth Rate (%) (Year-On-Year) 218.8 12.2 26.4 81.1 79.7 62.5
2010-11 2011-12 2012-13
132.34 226.11 394.1
99.49 70.86 74.30
9391.49 17903.5 29022.4
129.3 90.6 62.1
Source: RBI (Growth Rate: Self Computed) Table 4 indicates the growth rate of number and amount of NEFT of SCBs in India. In the study period from 2003-04 to 2012-13, there has been a recorded a constant growth in number of transaction which has been increased from 0.82 million to 394.1 million having compound annual growth rate as 98.59% and in case of amount of those transactions again the growth rate (CAGR: 76.87%) is much improving which has reached from 171.25 billion to 29022.4 billion during the study period. The reason behind this unexpected increase in the transaction of NEFT is because these transactions can be access from anywhere through various electronic delivery channels via electronic device, no need to send any cheque or demand draft, no need to visit the bank branches, damage of physical instruments can be avoided, cost effective too. (iv) Credit Cards A credit card is a short term financing system that allows the users to borrow funds from their bank for making purchase of goods and services. A credit purchases involve the bank as a third party entity that pays the seller at the point of sales (POS) and later on it is reimbursed by the buyer. Table 5: Growth Rate of Credit Cards (As on year ended March) Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Number (Million) 100.18 129.47 156.09 169.54 228.2 259.56 234.24 265.14 319.96 397
Growth Rate (%) (Year-On-Year) 29.24 20.56 8.62 34.60 13.74 9.75 13.19 20.68 24.08
Amount (Billion) 176.63 256.86 338.86 413.61 579.85 653.56 618.24 755.16 966.13 1230
Growth Rate (%) (Year-On-Year) 45.42 31.92 22.06 40.19 12.71 5.40 22.15 27.94 27.31
Source: RBI (Growth Rate: Self Computed) Table 5 indicates the growth rate of volume and amount of credit cards of SCBs in India. In the study period from 2003-04 to 2012-13, there has been a recorded a constant increase in number of credit cards as well as in amount of transactions which has been increased from 100.18 million to 397 million having compound annual growth rate as 16.53%and 176.63 billion to 1230 billionin case of amount again the growth rate is 24.06% during the study period. In the growth rate of both the variants, there has been
179
fluctuation arises in the year 2009-10 during the study period. The increasing growth of credit cards indicate that the cardholder has empowered the right to spend money more than his account balance within the limits fixed by his bank, there is no involvement of physical currency & customers don’t want to go the bank branches for daily transaction, which they can get easily from thesetechnology enabled services. (v) Debit Cards Debit card is a card which provides the cardholder electronic access to their bank account while making transaction. Debit card are also called check card, plastic card, bank cards. It facilitates the several purposes like to withdraw cash from an ATM, making purchase of goods & services at a point of time, online purchases, fund transfer, paying bills, changing PIN etc. at the time of opening account, bank provides debit cards free of cost. Table 6: Growth Rate of Debit Cards (As on year ended March) Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Number (Million) 37.76 41.53 45.69 60.18 88.31 127.65 170.17 237.06 327.54 469
Growth Rate (%) (Year-On-Year) 9.98 10.02 31.71 46.74 44.55 33.31 39.31 38.17 43.19
Amount (Billion) 48.74 53.61 58.97 81.72 125.21 185.47 264.18 386.91 534.32 743
Growth Rate (%) (Year-On-Year) 9.99 10.00 38.58 53.22 48.13 42.44 46.46 38.10 39.06
Source: RBI (Growth Rate: Self Computed) Table 6 indicates the growth rate of volume and amount of debit cards of SCBs in India. In the study period from 2003-04 to 2012-13, there has been recorded a favorable increase of both the variants. In number of debit cards as well as in amount of transactions there has been constant growth from 37.76 to 496along with compound annual growth rate as 32.30 % and 48.74 to 743 in case of amount having growth rate is 35.34 % respectively. The increasing growth of debit cards indicate that there is no involvement of physical currency & customers don’t want to go the bank branches for day to day transaction, which they can get easily from these technologies enabled services.
180
Table 7: Overall Growth Rate of Technological Innovations (As on year ended March) TECHNOLOGICAL INNOVATIONS Years→ No. of ATMs No. of ECS (Cr) Amt. of ECS (Cr) No. of ECS (Dr) Amt. of ECS (Dr) No. of NEFT Amt. of NEFT No. of Credit cards Amt. of Credit cards No. of Debit cards Amt. of Debit cards
2005 97.10 97.30 94.41 29.59 21.98 218.8 29.24 45.42 9.98 9.99
2006 19.87 10.41 60.18 135.03 344.5 20.39 12.2 20.56 31.92 10.02 10.0
2007 28.09 56.08 157.50 109.12 95.91 55.70 26.4 8.62 22.06 31.71 38.58
GROWTH RATE (%) (Year-On-Year) 2008 2009 2010 2011 28.43 25.47 37.80 23.86 13.55 12.79 11.02 19.54 118.93 46.50 20.64 54.48 69.04 25.90 6.73 5.00 92.35 36.86 3.80 5.93 178.66 141.44 106.2 99.49 81.1 79.7 62.5 129.3 34.60 13.74 9.75 13.19 4.019 12.71 5.40 22.15 46.74 44.55 33.31 39.31 53.22 48.13 42.44 46.46
2012 28.43 3.58 1.15 5.10 13.18 70.86 90.6 20.68 27.94 38.17 38.10
2013 2014 2015 19.15 40.38 13.33 0.58 3.62 7.14 29.94 74.30 62.1 24.08 27.31 43.19 39.06 -
Source: RBI (Growth Rate: Self Computed) The above table indicates the overall growth rate of technological innovations of schedule commercial banks in India. In the table, the growth rate of ATMs is consistently increasing because customers do not want to go bank branches for their day to day banking transactions, relieves customers from long waiting hours in queue, it has replicate the way of carrying currency in different city, state and even nationwide. The growth rate of other services was fluctuating but in an increasing manner, so rise in these aspects has made the banks more competitive and resulted in opening of better prospects and avenues for banking operations. In the coming years, modern banking will become the most preferred way of banking because of the inclusion of technology innovations adopted by Indian banking sector. Conclusion In the past few years, the banking sector in India has experienced a substantial transformation from conventional banking to modern banking. Today, banks are not merely the financial institution they are also responsible for sustainable development of banks. Being the facilitator of growth, technology has altered the way of providing banking services and also helps in increasing productivity, profitability and competitiveness in the banking industry. Therefore, technology has become a key challenge for the Indian banking industry. The aim of today’s banking not only to satisfy customers but also to retain them for a long term by providing technology-based innovative services. This study is an attempt to justify that overall efficiency of banks has enhance in terms of improves quality and variety of banking services.
181
References Bhattacharya, B.B. and Arup Mitra (1990), Excess Growth of Tertiary Sector in Indian Economy: Issues and Implications, Economic and Political Weekly, (25) 44 (Nov. 3, 1990), pp. 2445-2450. Berger, N.A (2003), The Economics Effects of Technological Progress: Evidence from Banking Industry, Journal of Money, Credit and Banking, 35(44). Jeyakumar, S. (Dr.) (2015), Technological Developments of Scheduled Commercial Banks in India – An Analysis, Journal ofBanking & Finance, XXVIII (3), pg.37-44 (ISSN: 0971-4498). Rangarajan, C. (Dr.), Role of Technology in Development of Banking, Institute for Development and Research in Banking Technology, Hyderabad, 28 November 2010. Sawant, B.S (2011), Technological Developments in Indian Banking Sector, Indian Streams Research Journal,1(9), pg.1-4 (ISSN: 2230-7850). Report on Trends and Progress of Banking in India, Reserve Bank of India. Seema et. al. (2014), Technological Innovations in Indian Banking Sector: Changed face of Banking, International Journal of Advance Research in Computer Science and Management Studies, 2(6), June 2014 pg. 122-128(ISSN: 2321-7782). Mittal, P; Jadaun, S.S & Dash, M.K (2013), Computerization in Banks- Some Issues, IOSR Journal of Business and Management,8 (4) (March-April), pg. 01-11 (e-ISSN: 2278-487X). Lal, R (Dr.) & Saluja, R (Dr.) (2012), E-Banking: The Indian Scenario, Asia Pacific Journal of Marketing & Management Review, 1 (4) (December) pg. 16-25 (ISSN: 2319-2836).
182
CUSTOMER ENGAGEMENT AND ACQUISITION AT MIND OVER MATTER LEARNING (AYEAR-OLD STARTUP BY IIMAHMEDABAD ALUMNI) Tavishi Gitika Bhatia Disclaimer: It is intended to be used as the basis for discussion and gaining valuable insight that can further be used for research or developing various marketing strategies rather than to provide arguments against various research studies done. Information regarding the source of the data/information in the product: This research paper is an original piece of work. Copyright Statement: No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner.
Abstract “If children can’t learn the way we teach, we should teach them the way they learn” Running a school is no child’s play. Quite clearly, provision of quality contemporary education to India’s 450 million children below 18 years of age, is not a high priority of any of India’s major political parties. This paper discusses about various initiatives and customer engagement methods taken by IIM Ahmedabad Alumni, Mr. Harinder Chhabra and Mr. Aman Dhall in execution of a curriculum-based experiential learning Centre for children in Sectro-93, Noida. New age learning methods adopted by Mind over Matter Learning keeps them ahead in this line of business. Using ingenuity to serve society and business needs is very important. MoML caters the need of its parents while pushing its business ahead with unique and interesting programs and events. From ease of acquiring services to customer loyalty, MoML is taking care of all. Their CSR of development of every child’s personality, behavior and thinking ability apart from teaching them concepts in the core subjects, is well aligned to engage customers on values. With efficient marketing strategies of Content Marketing on Social Media, Event-Driven Marketing in neighborhood societies, Direct Marketing via customized SMS and Emails; ayear-old startup is inching towards creating its zenith. Keywords: Strategy Management, Feedback Mechanism, Business Development, Customer Engagement, Acquisitions, Direct Marketing, Digital Marketing, EventDriven Marketing, Print Marketing Making a Difference at Mind over Matter Learning A startup, founded in July 2014, is making a difference in the education business. Mind over Matter Learning is an education venture started by experienced IIM Ahmedabad Alumni, who want to create an impact on the way children are being made to learn in today’s globalized and interconnected world. With a carefully chosen mix of physical
183
tools, technology, worksheets, games and softer motivational aspects, they help your child substantially improve their knowledge, abilities and performance. An effective education system attempts to gauge academic achievement through tests, exams and assignments and provide inputs to students through report cards and even go on providing ranks and grades. Given that our ultimate aim is to create well rounded, intelligent and competent students in every walk of life, measuring a child’s success solely by academic achievement can never be enough to assess overall growth and development of children. The everyday life of a student is becoming increasingly complex and competitive through each passing day and is very often, controlled and managed by the student’s over-ambitious parents. Executive Summary The basic principle of promotion is to drive in more business. The motto of Marketing can hence be stated out as- “we shall overcome- by numbers”. Marketing is done to make something known and thought well of. Under the job profile of ‘Marketing and Business Development’ with Mind over Matter Learning, inclination has been towards creating a positive image of Mind over Matter Learning on various online as well as offline platforms via Print Marketing, Digital Marketing, Direct Marketing and Event-Driven Marketing. Development of a business seems to be the backbone of a company. Business must be developed for brand recognition, product/service penetration in the target market, differentiation of the product/service, overcoming the weaknesses and combating the threats in the industry. Large organizations have their dedicated budget for its sales promotion, advertisements and business development. But smaller organizations or startups need to make ends meet with the optimal utilization of monetary funds and other resources. To build a compelling value proposition for Mind over Matter Learning and to create its interface with people, assistance with strategy formulation and effective execution of events in neighborhood societies of Amrapali Sapphire, Grand Omaxe, was the requirement. From creating awareness about their services on online (Social Media) platforms to reaching out to the working parents in offline environment, line of sight was towards gaining competitive edge over (already established) competitors (Kumon, Home Tutors). Major drivers like Facebook Advertisements, WhatsApp/Facebook Communities, helped to paint a strong digital image for Mind over Matter Learning. Direct Marketing was used to target the niche audience. Mass emails and SMS helped to interact with parents and attain real insight of their perception of Mind over Matter Learning. Optimal use of the available resources (while cutting on the major costs) to build a community of potential customers for Mind over Matter Learning, has been the focus area.
184
Introduction “We hate to compare ourselves with tuition classes and coaching classes as we are neither of them. We believe that we are creating a much larger impact on the child’s personality, behavior and thinking ability apart from teaching them concepts in the core subjects.” -Mr. Chhabra and Mr. Dhall Customers have always had relationships with brands, but sophisticated tools for analyzing customer data are finally allowing organizations to personalize and manage those relationships. Companies spend $11 billion every year on CRM software and despite this and that “R” in CRM, many companies don’t understand customers at all. The Problem: Many companies lack relational intelligence- they don’t understand how many different kinds of relationships customers can have with their brands, nor do they know how to reinforce or change those connections. The Solution: Companies need to get better at capturing data. They must shift customers toward relationships that advance the firm’s strategic goals. This means, enhancing CUSTOMER ENGAGEMENT: Reorganization of marketing around relationships and keeping an interactive platform for customers to feel important. Customer Engagement Without customers there would be no significance of a brand. So it goes almost without saying that knowing how to handle a customer is one of the most pivotal skill to develop efficient brand value. The prospective client is often referred to as a lead. At any one time a brand should ideally have multiple clients and a couple of leads. Having only one or two clients or no new leads is almost always a bad idea. Not having a diversity puts the business at risk. There is no formula to discover how many clients or leads one should have at any one time to keep the business running smoothly. When looking for new customers one should remember that not every customer is suitable for the business. Thus, one should approach every lead by considering whether they’d be good fit for the business. Benefits and Needs The benefits of a happy customer relationship: continued association in terms of business, contented work life and new referrals. What to do for efficient Customer Engagement?
185
While building relationship with customers, it may require more efforts and work at some times than others. Since one should value all the customers, it is important to take time to work on the relationship by engaging them via taking their feedbacks, prioritizing their needs, having a long discussion to be honest about opinions etc. Methods for Customer Engagement Customer Engagement is done through various promotional campaigns which target communication channels aimed at particular customers (Fig 1.1).
Source: http://newtonsquared.com/event-management/
Figure 1.1 Steps to engage Customers
Various Methods adopted can be the following: 1. 2. 3. 4.
Digital Marketing/Content Marketing Print ads/Newspaper ads Demonstration of Product (Face-to-Face Discussion/Presentation) via Events, Workshops, Seminars Direct Marketing/Email Marketing
Digital Marketing: Get Things Done the Smart Way Social media platforms (Fig 1.2) are currently available to market the idea, brand or a concept. It’s creating a great buzz in the field of engaging with your potential customers (Fig 1.3).
186
Source: http://capitalcityreia.com/grow-your-real-estate-company-using-social-media/
Figure 1.2 Social Media Platforms
Figure 1.3 Percentage of Social Medium Usage Demonstration of Product: Event Management Despite being a denizen of the digital world, Steve Jobs believed in face-to-face meetings. Creativity comes from spontaneous meetings, from random discussions. Engage, hash things out at the table; to grow as a brand (Fig 1.4).
187
Source: https://ggarciauph.wordpress.com/2012/12/03/events-the-5-ws-and-1-h/powerpoint/
Figure 1.4: 5W’s and 1H of Event Management
Email Marketing It’s nearly impossible to get people by phone or in person these days. By modelling good e-mail practice, one can encourage those around them to send messages only when it’s necessary and appropriate. At initial stages, purpose is to create awareness for existence in a customer’s mind-set. Purpose is to make them aware and put a thought into their heads that more messaging is coming so they will be receptive to next message. Division of email messaging is given in following types: a. b. c. d. e.
Awareness Consideration Conversion Product usage Retention and loyalty
From awareness, next is consideration wherein emails focus on specific benefits of the product/service and/or provide a means for people to self-qualify themselves as viable prospects. Conversion emails are standard, hard-hitting, “BUY IT NOW”, “SING UP NOW”, emails. Product usage emails are sent to build stronger bond with customers and to soothe upset customers or to expand the reach of loyalists. Lastly, Loyalty emails are for engagement purpose and have much longer life span. Literature Review In 1925, Alfred North Whitehead aptly stated a fact, “The greatest invention of the nineteenth century was the invention of the method of invention… One element in the new method is just the discovery of how to set about bridging the gap between the scientific ideas, and the ultimate product. It is a process of disciplined attack upon one 188
difficulty after another.” Every business proves out to be all things to all different people. In a wider, picture, as one narrows down the market research to what one’s company focuses at, what services they are ready to commit and what will be their target market, better will be their growth chart. Formulation of Structured Systems is very pivotal for a startup in its early growing days. With right strategic planning and strong-based structural operations, a new and young venture grows three times faster than a competitor who doesn’t follow the same. Yogi Berra famously said, “If you don’t know where you’re going, you might not get there.” Leaders engage employees, who engage customers, who in turn engage more customers. This all leads to better results. Steve Jobs said that customers might not know what products they need. Similarly, CEOs, managers sometimes need to educate employees or give them an extra push to redefine customer engagement. Yet in most companies the organizational structure of the marketing function hasn’t changed since the practice of brand management emerged, more than 40 years ago. Marketers must understand that their organization needs an overhaul. They must know that structure must follow strategy- not the other way around. There are various approaches to achieve the same: Big data, deep insights: Marketers today are awash in customer data, and most are finding narrow ways to use that information- to say, improve the targeting of messages. Knowing what an individual consumer is doing where and when is now table stakes. Purposeful Positioning: Top brands excel at delivering all three manifestations of brand purpose- functional benefits, or the job the customer buys the brand to do (think of the pick-me-up Starbucks coffee provides); emotional benefits, or how it satisfies a customer’s emotional needs (drinking coffee is a social occasion); and societal benefits, such as sustainability (when coffee is sourced through fair trade). Total Experience: Companies are increasingly enhancing the value of their products by creating customer experiences. Some deepen the customer relationship by leveraging what they know about a given customer to personalize offerings. The most important metric will soon change from “share of wallet” or “share of voice” to “share of experience”. Creating teams with three key types of capabilities Think Marketers- apply analytic capabilities to tasks like media-mix modelling and optimization. Do Marketers- develop content and design and lead production. Feel Marketers- focus on consumer interaction and engagement in roles from customer service to social media and online communities.
189
Project Objective Research focusses on Customer Engagement by a Startup, and what impact does it have on the number of Acquisitions. Primary Objective
To Study different methods of customer engagement and how effective each one is in terms of pricing, customer response and growth of the startup.
Secondary Objective
To search for more unique and interactive tricks to engage customers. To determine the growth of the startup and study other promotional activities to outshine its competitors (in Sector 93, Noida). To understand the nature of a customer, to help increase the customer acquisitions.
Research Methodology: 1. Research Design What you’re good at, what you like to do, and what adds value to the world; at the intersection of these three spheres lie a land of joy and productivity that can successfully compete with the forces of entropy, of disorder, that tilt us all toward lassitude. Design of conceptualized research revolves around that intersection point, which pushes towards collection of data and its analysis to finally achieve the land of productivity and efficiency. 2. Type of Research The proposed study falls under DESCRIPTIVE RESEARCH. This is chosen to describe a particular behavior of a phenomenon in the environment, wherein behavior would be Acquisitions of customers, phenomenon would be engaging of Customers by the startup (Mind over Matter Learning) and Environment is Sector 92 and 93, Noida. It is a quasi-experimental research that focusses on OBSERVATIONS in and around the object under consideration i.e., it follows Black-Box Approach of Marketing. Hence, this is done to draw conclusions on my proposed topic via qualitative and quantitative study. 3. Data Sources For topic under consideration, primary data is being gathered through Company Profile, its documents, history and progress while Secondary data has been collected through various sources like journals, blogs, social media platforms and other websources (All cited in the references).
190
4. Research Instruments Topic under consideration incorporates following instruments: • Observations: - Recording of Events as they occurred. This is done by either researcher or investigator, whose job is to observe the surroundings and deduce results on the basis of his observation. • Case Study: - It is a story based on actual experiences/facts/circumstances. This helps us to reach at a better and quick decision while inferring the background information on the subject under consideration. 5. Scope of Study Customer engagement is one aspect that is very essential from the growth perspective of any business. When it’s a startup, this becomes even more important. Effective Engaging of customers is reflected upon the number of acquisitions which in turn affect the gross profit. 6. Research Limitations Observational research relies upon the observation of a researcher and is backed up by the analysis provided by him/her. Thus, it solely depends on the skill set of the researcher to deduce conclusion from the subject under consideration, after thorough observation. Data Analysis Quantitative Analysis: Digital Marketing Analysis(July 2014 – June 2015)
ACTIVITY-BASED COST TRACKER [Mind over Matter Learning] [July, 22 2015]
COSTS
METHOD 1
METHOD 2
METHOD 3
METHOD 4
Print Ads (Newspaper, Magazine)
Social Media Marketing (Facebook, Whatsapp)
Direct Marketing Mass Emails/SMS
Branding via Events (In societies)
Column3 NA
Column4 Rs. 5500/Event
Column2 NA
Column3 NA
Column4 Rs. 200/Event
Column2
Column3
DIRECT COSTS Cost Price Facebook Advertisements
Column1 Rs. 19,200
INDIRECT COSTS Transportation/Shipping
Column1 Rs. 7,200
GENERAL AND ADMINISTRATIVE Conversion/Inquiry Rate Penetration of target audience
Column1
Column2 Rs. 10,500
1.39% 83.76%
191
Column4 1.12%
12.64%
Source: Primary Data from MoML
Table 1 Sales of methods of Customer Engagement
Figure5.5 Success of Methods of Customer Engagement
Data Analysis via Facebook Penetration: From Data of Founding (July 2014) to June 2015 Source: https://www.facebook.com/mindovermatterlearning
Figure 5.6 Facebook reach on July 30, 2014
192
Figure 5.7 Facebook Reach on May 26, 2015
Education Business is seasonal and as per the academic cycle business dips down in vacations, while children are out enjoying their vacations. Thus, as per the reach of Mind over Matter Learning to its target audience, following is the penetration of their customers.
Figure 5.8 Facebook Reach to target audience in 2014-15
Figure 5.9 Facebook Likes Data
Figure 5.10 Customer reach and Likes on Social Media
193
Figure 5.11 Summary of Penetration via Fb in July 2015
Qualitative Analysis 1.
Methods adopted by MoML to engage with children
With HOTS driven Learning, MoML incorporate concept sessions and their continuous practice and assessment. In order to instill knowledge, skills, confidence, enthusiasm MoML brings in New Age learning methods of interactive sessions, learning via Laptop, board games, YouTube videos, Reading books, discovery workshops etc. From the learning pyramid (Fig. 5.8) one can see that participatory teaching methods are the most effective. Thus, MoML motto is to teach the children however they like to learn. They are also including an efficient incentive based curriculum, teaching the young minds about healthy competitive spirit and motivating them to perform well along with 100% attendance in Mindroom sessions.
Figure 5.8 Learning pyramid for teaching
194
2.
SWOT Analysis
Internal factors Strengths and Weaknesses and External Factors of Opportunities and threats, combine together to give situational analysis for any firm. For effective environment scanning, followed by right formulation of strategy, SWOT analysis is very important. For MoML, SWOT analysis is as follows:
3. Market Plan
Development
Strategy is a plan of action that is formulated by any organization to attain above average returns and to analyze internal Strengths, Weaknesses and external Opportunities, threats to combat risks/uncertainties and to adapt to the business environment. Structure follows the strategy so; a well drafted strategy is very much essential in driving a company forward. Marketing mix is needed when we need to evaluate a firm’s offering in terms of its penetration in the market. It comprises of 4 P’s- Product, Price, Place, and Promotion. Dwelling this marketing mix with the business model of Mind over Matter Learning:
195
Product: Services are well marketed as products. As this study already discussed various USPs of Mind over Matter Learning now, their basket of offerings must widen in order to attract more customers and retail the existing ones. Their initiative of eScience program is a step ahead. Price: Gaining Competitive Advantage if driven by two factors of PRICE and QUALITY. ‘Sabse Sasta aur Sabse Badiya’, every customer wants that. If the focus is monetary then Mind over Matter Learning must work an extra mile on the quality offered. Place: Place in marketing mix talks about the distribution network. But here, point under consideration is the segmentation done by Mind over Matter Learning to reach to their niche audience. Forecasting the business in near future, Mind over Matter Learning must soon widen its reach to entire Delhi/NCR to sustain their pull in the market. Promotion: Company can do wonders and create or provide amazing services but if people are unaware about the same, then sales will never grow. Mind over Matter Learning has built few communities in Sector 93 and 92. They must build more such communities of people to have better penetration in the market and to give a stronger push to their sales. Conclusion and Recommendations In the near future, one can see the competition getting tough. Innovative ideas as well as keeping updated with the technological advances are very important. Mind over Matter Learning must keep their operations in control and make the changes whenever needed. Proper planning, timely execution will make their preparation meet the future opportunities, in the education sector. New age learning methods adopted by Mind over Matter Learning will take it ahead in this line of business. With efficient marketing strategies of Content Marketing, Social Media Optimization, Blogs linked with Website, Event-Driven Marketing in corporate sectors; will reap out positive results for the company. Investments are also very important in the initial period of a startup as it gives them a boost to move forward with the support of a tie-up. Mind over Matter Learning must seek tie-ups from companies for their investment. In return, all the working mothers can trust Mind over Matter Learning in terms of development and learning of their children. It will be a win-win situation for all. Thus, following recommendations are proposed to future stars: 1. Tie-ups with Corporate sector: If they start with their day-care in the near future, they can target corporate sectors. PROS: Employees will trust them as they are 196
approaching them through their company. Also, employees will be relieved from tension of segregating their time to office and their children and can work efficiently hence, adding value to company. Therefore, Mind over Matter Learning gets more conversions and increase their value with such tie-ups. Win-win for all. 2. Feedback Mechanism- Polls/Questions: Asking parents how would they like their kids to grow and bloom in domains of studies, extra-curricular activities, overall development etc. This shall increase the customer engagement and if parents are happy- Mind over Matter Learning will be HAPPIER! 3. Important notices and Announcements: Upcoming examinations, Olympiads, newly launched book or latest YouTube video for learning of a child or an educational and parental blog, must be promoted to help parents educate their child in a better way and to trust Mind over Matter Learning with being good caretakers of their children. 4. Experiential Learning using Science experiments: They are always fun. Some stepby-step science activities and experiments can be initiated in the learning curriculum as well as it can be promoted on social media platforms for children’s DIY. 5. Content Marketing using BLOGS: Content marketing is creating buzz these days. Blogs will talk about the approach, values, USP, educational and motivational concepts, ideas of Mind over Matter Learning. When Mind over Matter Learning goes beyond the vicinity of sector 93, this shall really help them with their promotional mix. 6. Fun Events/Promotional Campaigns: Father’s Day, Parents’ Day can be organized. Also, they can have a gateway wherein the kids solve a worksheet or puzzles online/offline and are offered with medals, 1-day free iSpeak class etc. (other such incentives within the limits of operational costing) 7. Share what you learn STRATEGY: Children must somehow share what they learn here so other parents know that we are doing good job. FOR Mind over Matter Learning, kids are important more than parents. Students now, love collaborating, exchanging or sharing something; let them feel empowered- they can share their own definitions or something they discovered or learnt recently. 8. Incentives/Day to Appreciate Young Minds: Children are driven by incentives: chocolates, games, attractive items. Healthy competitive spirit must be infused. 9. Interactive Sessions, Photos, Discussion Forum on Social Media: They must Initiate Teaching through Digital Media, Engagement and Likes Will Follow. References Anoumous (2014), Retrieved from Mind over Matter Web site: http://www.mindovermatter.co.in/
197
Boko, G. (2015, July 15), What Makes Startups Succeed When 40 Percent Fail? Retrieved from entrepreneur.com: http://www.entrepreneur.com/article/247159 Brittany. Grow Your Real Estate Company Using Social Media. Retrieved from Capital City Reia Web site: http://capitalcityreia.com/grow-your-real-estate-company-using-social-media/ Event Management. Retrieved from Newton Squared Web site: http://newtonsquared.com/eventmanagement/ Events – The 5 W’s and 1 H » Powerpoint. (2012, December 3), Retrieved from Ggarciauph Web site: https://ggarciauph.wordpress.com/2012/12/03/events-the-5-ws-and-1-h/powerpoint/ Good Practice Guide and Use Case Studies of Mobile Learning. (2014), Retrieved from Classroom-Aid Web site: http://classroom-aid.com/2014/03/10/good-practice-guide-and-use-case-studies-of-mobilelearning-mlearning/ Hubbard, L. R. (1999), The organization Executive Course. USA: Bridge Publications, Inc. . Kaufer, D. (2013, May 22), Facebook and LinkedIn Provide Best Marketing Results: 2013 Social Media Marketing Industry Report. Retrieved from Kaufer DMC Web site: http://www.kauferdmc.com/facebook-andlinkedin-provide-best-marketing-results-2013-social-media-marketing-industry-report/ Malburg, C. R. (2008), ALL-IN-ONE Business Planner. USA: Adams Media Corporation. Mind over Matter Learning. https://www.facebook.com/mindovermatterlearning
Retrieved
from
Facebook:
Mullen, J., & Daniels, D. (2011), Email Marketing: An hour a day. New Jersey: John Wiley & Sons, Inc. stansell, K. Two Weeks to Startup: Day 2. Research Your Business Idea. Retrieved from entrepreneur.com: http://www.entrepreneur.com/article/218130 Valdivia, W. D. (2013, november). University Start-Ups: Critical for improving technology transfer. Washington, DC: Centre for technology innovation at BROOKINGS. Retrieved from brookings.edu: http://www.brookings.edu/~/media/research/files/papers/2013/11/start-ups-tech-transfervaldivia/valdivia_tech-transfer_v29_no-embargo.pdf Zycher, B. (2013). Startup Businesses and the Growth of Real State Gross Product. Pacific Research Institute, San Fransisco.
198
SOCIAL MARKETING AND ITS EFFECTIVENESS: A CASE STUDY WITH BANDHAN Alok Kumar Shapoorji Sukhobrishti
Abstract Social marketing seeks to influence social behaviors not to benefit the marketer, but to benefit the target audience and the general society. Rather than dictating the way that information is to be conveyed from the top to bottom, Social Marketing, gives importance to listen to the needs and desires of the target audience and building the programme from there. NBFCs and Microfinance companies are also playing an important role in Social Marketing. They focused on what the people of lower income group want, what are their problem and how can that problem be solved. Here right perception of the problem and to determine how important the consumer feels to take action against it is very important. Bandhan Financial Services Limited, incorporated under Companies Act, 1956 and a Registered NBFC, with RBI is working for last 13 years has received final clearance by RBI to set up a Universal Bank. Bandhan, with a philosophy of a poverty-free world through empowerment of the poor, has been engaged in delivery of microfinance services aspiring to holistic development of the poor. Key Words: Social Marketing, Social Behavior, Social Marketing Skills Introduction Society has its own rules and its own standards to do the things. Some of those rules and standard have not passed the test of time and need to be changed. The changing times and education has changed the mindset of people. The very sense of right and wrong is the motivation for change. Change for better. Societies or communities do many different things to solve the issues that interest them and useful for the betterment. Understanding Social Marketing Social marketing is an approach used to develop activities aimed at changing or maintaining people’s behaviour for the benefit of individuals and society as a whole. Combining ideas from commercial marketing and the social sciences, social marketing is a proven tool for influencing behaviour in a sustainable and cost-effective way. Social marketing is nothing but adaptation of the methodology of marketing to social imperatives with the objective of achieving social change.
199
Kotler (as cited in Shankar, 2009, p. 4) has identified four basic approaches to social change—the legal, technological, economic and informational approaches. We can understand this with an example of say ‘Immunization’. The legal approach in this case would be to pass laws that make immunization absolutely essential. The technological approach would be innovating high-quality single shot vaccines so as to reduce the number of visits a mother has to make to get her child properly immunized. The economic approach would be to make immunization free from any charge and the information approach would be to educate people about the ill effects of the diseases against which immunization is available. So Social Marketing helps to decide: i. ii. iii. iv.
What behaviour to influence Which people to work with How to go about it How to measure it
So we can say that Social Marketing is the application of commercial marketing techniques to social problems. In other words, it uses the same principles of selling goods and services to convince people to change their behavior be it for a child hunger campaign or an awareness about teen pregnancy initiative to put an end to child having children. The goal of social marketing is always to change or maintain how people behave – not what they think or how aware they are about an issue. If your goal is only to increase awareness or knowledge, or change attitudes, you are not doing social marketing. What is needed for Social Marketing? 1. Target behavior which has to be changed or promoted: First and foremost, thing is to identify the behavior which has to be changed or retained in order to promote social good. (for example to educate people about the side effects of irrational use of antibiotics and painkillers or to increase prenatal counseling among expectant mothers.) 2. Target Audience: Which age group, gender, level of education should be targeted in order to get the desired result, is the main focus area. 3. To identify the barriers and plan to overcome them: through interviews, surveys and other methods, it can be ascertained that what makes it difficult or unattractive for people to make these changes. Only then we can plan ways to make it easier, more attractive and more accessible. 4. Pretest your ideas on a small sample size: Start your work from small level and plan according to the result.
200
5. Publicize the benefits of change: People may not be aware about the benefits of the change but once they understand the benefits of the behavior change they can take decision easily. Pricing Strategy The social marketing price includes money costs, opportunity costs, energy cost and psychic costs. For example, the cost of using helmets is the charge for buying them, the effort to wear it and strap it, and the psychological cost of not being completely sure one 8 is better off in an accident wearing it or not wearing it. Bloom and Novelli suggested that developing a pricing strategy, primarily involves trying to reduce the monetary, psychic, energy and time costs incurred by consumers, when engaging in a desired social behaviour. Kotler and Zaltman (as cited in Shankar, 2009, p. 8) have suggested that the poor result of many social campaigns can be attributed to their failure to suggest clear action outlets for those motivated to acquire the product. The effectiveness of current campaigns on controlling infant mortality can be enhanced manifolds by ensuring proper vaccination facilities at every village. The challenge for social marketer lies in utilising and controlling desired intermediaries. The most significant component of social marketing strategy is the communication strategy which is persuasive and makes the product or programme familiar, acceptable and desirable to the audience. The challenge in social communication is that it is not always possible to use advertising but yet the message has to be put across. The other constraint is that in social communication and advertising there is pressure not to use certain types of appeals. For example, fear, humour or hard selling appeals are rather undesirable. In social advertising, as compared to commercial advertising, a large amount of information is to be given and this poses another set of challenges before the social advertiser. Purpose of the Study This paper is setup in the context of Bandhan financial services pvt limited so as to understand the effectiveness of social marketing in an illustrative way. The community or social programs will prove themselves better in terms of performance if marketing is associated with it. Hence, the social programs will guarantee more benefits to the society if they are marketed and not simply run. The poorest of poor people especially women are so much engrossed in managing their livelihood that other basic amenities are nowhere in their priority or wish list. Bandhan was set up in 2001 to address the dual objective of poverty alleviation and women empowerment. Bandhan was started with the mission to reduce socio-economic poverty substantially and create employment by targeting low-income households across the country through providing cost-effective sustainable financial and nonfinancial services emphasizing on social securities.
201
The microfinance activities are carried on by Bandhan Financial Services Pvt. Limited (BFSPL), incorporated under the Companies Act, 1956 and also registered as a Non Banking Financial Company (NBFC) with the Reserve Bank of India. Philosophy and Journey of Bandhan ‘Bandhan’ was born under the able leadership of Mr. Chandra Shekhar Ghosh. Bandhan means togetherness. The main thrust of Bandhan is to work with the women who are socially disadvantaged and economically exploited. Bandhan works for their social upliftment and economic freedom. To achieve the above objective, Bandhan is basically engaged in the delivery of microfinance services to the poor women. The founder and mentor of Bandhan, Mr. Chandra Shekhar Ghosh said that while delivering microfinance services, we have realized that it doesn’t stand alone, the various developmental activities stand as pillars of support. He is of the view that the implementation of both becomes easier if they complement one another. It is akin to a two-way street – both are interlinked and interdependent to some extent. Putting together microfinance work with developmental activities such as education, health, employment generation, livelihood and the like can prove to be a successful model. Therefore, all microfinance players ought to adopt the credit plus approach which will integrate timely and adequate credit into larger developmental processes. The microfinance operations started from Bagnan, a small village which is 60 kms away from the city of Kolkata. In a short span on 13 years, Bandhan has travelled a wide geography of 5644 villages and around eight lakh beneficiaries with special focus on eastern and underdeveloped states of North East. The basic philosophy that Bandhan believes that microfinance is not the last word for development of the poor. Aspiring to holistic development of the poor, Bandhan offers development activities in crucial fields of education, health, unemployment, livelihood and the like through its not for profit entity. Programmes a. Targeting the Hard Core Poor (THP): This programme aims to reachout to the hard core poor who are bypassed by microfinance. It targets the extremely destitute women having no asset base or alternative source of income are highly vulnerable to shocks, deserted by husbands and mainly dependent on begging, wage labour etc. The programme has received grant and support from The Ford Foundation, The Micheal and Susan Dell Foundation and CGAP. Massachusetts Institute of Technology (MIT), USA has been associated with the research of THP programme in Murshidabad district of West Bengal ever since its inception. This programme is presently active in 4 different states.
202
b. Axis Bank Bandhan Holistic Assistance (ABHA): In extension of THP, through this programme, Bandhan in collaboration with Axis Bank Foundation would reach out to 50,000 ultra poor families from the poverty stricken districts of West Bengal. This programme is expected to be a crusade in realizing the vision of more equitable society, where the poorest of the poor share the benefits of growth. c. Employing the Unemployed Programme (EUP): Skill development initiative can play an effective role in combating unemployment to an appreciable extent. Bandhan has set up its own vocational centers in different parts of West Bengal. This function like training institutes and after adequate training, the youth either generate self employment or find themselves employed with reputed companies. This programme is presently active in 3 different states and 7244 families have been covered till date. d. Renewable Energy Programme (REP): The idea is to provide sustainable electricity without harming the environment through lamps and lanterns. The benefits of these lights are that it improves health condition, supports extend hours of livelihood activity, its safer option use as there is no chance of fire or getting burnt from the same etc. and above all harnesses the unlimited source of Solar energy. Effectiveness THP is one of the most of the cost-effective models that addresses multiple economic deficiencies and demonstrates significant & substantial impacts on the lives of the rural, extreme poor. At a cost of Rs. 22,000 per family of 4-5, the program transforms the lives of the ultra-poor woman & her family within two years’ time and creates sustainable livelihood opportunities for them. It is time bound, economically regenerative and shows potential of a new pathway out of poverty on a larger scale. This small investment returns significantly greater long-term socio-economic impact and provides hope and dignity to the extreme poor. The targeted population of THP program is the poorest of poor- mainly marginalized matriarchal families that lack capital, confidence and job skills. These families have no stable income; productive assets and very limited access to government and NGO entitlements. Committed to empowering these women with self-reliance and confidence the THP program was launched by Bandhan in 2006 & now it has expanded into 24 districts in 4 states of India, enabling 22,654 households (nearly 100,000 people) to come out of absolute poverty. To augment the program’s results in other neighboring states like Odisha & Bihar, where poverty is widespread, Bandhan has rolled out a scaling program with support from USAID beginning in September 2014. Within a three-year period, Bandhan - with
203
assistance from The Abdul Latif Jameel Poverty Action Lab (J-PAL) South Asia- will establish an at-scale model, provide on-going advocacy to secure implementation and funding partners, and transfer the model to implementing partners with wide reach. This initiative will take place over a 3-year period, and aims to reach 1,000 families by the end of year two and 4,350 by the end of year three. Effective use of Social Marketing Skills Some of India’s largest conglomerates—including the Anil Ambani-led Reliance Group, the Aditya Birla Group and the Bajaj Group—failed to secure a banking licence, when the RBI decided to grant bank licences for the first time in a decade. Only Bandhan and infrastructure lender IDFC had got ‘in-principle’ approval from the Reserve Bank of India (RBI) to start banking operations within 18 months. In Microfinance Code of Conduct Compliance Assessment Report, Bandhan receives “excellent” overall score on account of sound performance on most of the code of conduct dimensions and compliance with regulatory directions. Bandhan has established a sound Grievance Collection and Redressal Mechanism and its board has been actively involved in reviewing the resolution of grievances and complaints. There is a very strong emphasis on treating clients with respect and dignity. Bandhan has evolved an effective system of training its employees on crucial aspects of its microfinance methodology. Bandhan through its parent NGO has been actively pursuing projects to bring favorable changes in the communities it operates in. It has used the social marketing skills to cater to the economic weaker sections of society particularly women and consolidated its position by making them self reliant. The Road Ahead Through all its different programmes Bandhan has distributed loans amounting to Rs. 1,601 crores. India’s largest microfinance firm, Bandhan Financial Services, will start operations as a full-fledged bank in the month of August this year, with nearly 600 branches across 27 states. Two-thirds of these branches will be located in the semi-urban and rural parts of the country. The bank to be called Bandhan Bank, will specially cater to needs of micro, small and medium enterprises. The Chairman and Managing Director of Bandhan, Mr. C S Ghosh said that it would be bank for all but the primary objective will be to serve the unbanked – estimated to be 50% of India’s population. Bandhan’s current net worth is Rs. 2700 crore which is estimated to rise to 3200 crores when it becomes bank. The banking operations will start on August 23, 2015 in Kolkata, its headquarters. References Shankar, R. (2009). Social Marketing for Sustainable Development: The Indian Experiences. Retrieved from http://www.marketing-trends- Congress.com/archives/2009/Materiali/Paper/Fr/Shanker.pdf.
204
Retrieved from http://www. ctb.ku.edu/en/sustain/socialmarketing/overview/main. Retrieved from http://www.thensme.co/content/socialmarketing.
205
A REVIEW PAPER ON CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES Pukhraj Suman Dr. Sanjay Gupta Abstract The biggest management opportunity in the new millennium of globalization and liberalization for a business is to serve and maintain good relations with the king – the customer. The changing environment of business is specially depend on the economic liberalization, increasing competition, enlightened and demanding customer, high consumer preference and selection, more emphasis on quality and value of purchase. The paper provides a brief review of the research undertaken in the past in the field of customer relationship management practices followed in India and all over the globe. Introduction The CRM has been defined by several researchers from different points of view. The concept of CRM has been enriched from various viewpoints namely satisfaction, loyalty, retention, allocation of recourses for retaining customers, top management involvement in support of CRM, employee involvement, effective chain management, after sale services to customers, organizational learning, organizational structure etc. CRM helps the firm meet the following objectives: 1) To give better customer service through get maximum profit and retain them for a long time. 2) Provide faster response to customer enquiries to maintain the service quality. 3) To understand need and demand of customers getting deep knowledge. 4) Reduces cost of sales and increase productivity to achieving the best level of customers. 5) One to one customer based marketing. 6) Making new customers. 7) To retain old customers and turn them into loyal customers. Components of CRM There are basically various components of customer relationship management, mainly CRM consists of three components: 1) Customer: Customer relationship management always tries to achieve a single integrated view of customers and a customer centric approach (Roberts-Witt, 2000). The customer is the only origin of the company’s present profit and future growth. 206
CRM can be including marketing approach that is based on customer information (Wyner, 1999). 2) Relationship: The relationship between a company and its customers involves continuous bi-directional communication and interaction. The relationship in a company can be short-term or long-term, continuous or discrete, and repeating or one-time. 3) Management: CRM is not only an activity within a marketing department. Rather it involves continuous corporate change in processes and culture. The collected customer information is transformed into corporate knowledge that leads to activities related take advantage of the information and of market opportunities. Customer relationship management always needs to comprehensive change in the organization and its people. In addition to above three components CRM adopted some other components also. 1) Relationship marketing: RM describes as a specific type of marketing such as database marketing, service marketing. 2) Sales, marketing, and customer support: These three elements of CRM are so important for the particular organization. It is useful to make planning for the define purpose. 3) Technology, process, and people: Organizations are required to integrate IT to improve the capabilities of understanding customer behavior, develop predictive models, build effective communications with customers and respond to those customers with real time and accurate information (Chen & Popovich, 2003). In business process aspects CRM success requires a change of business processes towards customer – centric approach. All business processes that involve both direct and indirect interaction with customers should be analyzed and assessed. The people aspect, we can say that this is the key factor of successful CRM. Importance of CRM If we ever heard of Customer Relationship Management (CRM) and wondered why it’s so important, it’s simple. No matter what business you’re in, unless your customers are happy you won’t succeed, and this is why CRM is so important. Sales, marketing and any other part of company which is related to customer would not survive without customer (Danny Brown, 2008). CRM is a very important factor to those industries which is generally depends on customer’s expectation. It is like a key of business performance that established various
207
things in a good manner. If we concern about the benefits and importance of CRM, we can say that the role of CRM is very vast. Sin, Tse and Yim (2004) said that Effective and efficient CRM creates competitive advantage and improves the performance of firms. CRM practices increase revenues, profits, and customer service. (Winer, 2001) found that, the ultimate reason for CRM practices is greater profitability by reducing customer acquisition costs, increasing repeat purchases, and charging relatively higher prices. Richard (2007) said in his words the rapid growth of CRM can be attributed to (a) fierce business competition for valuable customers, (b) economics of customer retention (lifetime value) and (c) technology advances (Buttle, 2004). Thompson (2005) in the same way noted evidence that some of the reasons for the use of CRM in organizations are increased customer satisfaction, reduced costs of sales, service and marketing, increased sales revenues, reduced costs of other operations, increased profit per customer; and increased customer retention. Causes of these important benefits of CRM, more and more industry is following CRM strategies, tools, programs and technologies to ensure business success. Review of Literature Shang and Feng Ko(2006) state that Customer relationship management is a combination of People, processes and technology that seek to understand a company's customers which are an integrated approach to managing relationships by focusing on relationship developmentand customer retention.(Swift,2001)mentioned CRM as an enterprise approach to understanding and influencing behavior of customer through meaningful communications in order to improve customer retention,customer acquisition, customer loyalty, and customer profitability. In the management process of CRM uses enabled individual customer data, mutually trusting and valuable proposition. But in the small organizations, Customer RelationshipManagement is generally characterizes by the information technology enabled integration of customer data from multiple sources. Bose and Sugamaran (2003) stated that in his words, customer relationship management is about managing of customer knowledge andit helps to better understand and serve them. It is an umbrella concept that putthe customer at the centre of an organization. Customerservice is an important component of CRM. It is play a vital role in a service industry. However, CRM is also concern with coordinating customer relation across all business function that is point of interaction, and audiences. In the aspect of information technologies CRM is understand as the complex of software and technologies, automating and performing processes business in the following areas: sales, marketing, service, and customer support. CRM is not a product; it is not even a suite of products. It is business philosophy that touches upon many independent parts
208
of the organization, its addresses the sales, marketing, and service activities of the organization. It is about selling good products and services to the right people. CRM is a process and strategy which helps to relevant software for the purpose of improving customer’s loyalty and corporate profitability. It also helps the firm to retain the customers, understand the needs and wants of the customer and tries to satisfythem. CRM is imperative for crafting the fight value proposition, acquiring the right customer, instituting the best processes, motivating employees and learning to retain customers. Goyal (2011) said that in his study to enhance profitability and guest satisfaction, the hotels should focus on implementingCustomer Relationship Management strategies thataim to seek, gather and store the right information, validate and share it throughout the organization. Yim, Anderson and Swaminathan (2004) state that the identity of CRM has become intangible (you can’t see it but you can feel it). The perspectives of CRM in the books of marketing management, the definitions of CRM range from very narrow interpretations to very broad ones with no two being the same. Many researchers have made great efforts to describe the CRM practices of firm’s and had interesting findings. Mehta, Sharma and Mehta (2010) found that customers select services based on CRM practices of the service provider. CRM practices in the transport business, they identified facilities, comfort, timely services, supportive staff and trust as the most valuable. Gaur and Waheed (2003) observed that technology-based CRM is prominent in service firms. They got the action of related technology based CRM and also said that it’s useful to every service industry. Whereas (Pathak & Modi, 2004) find that quality of service is one practice of CRM that customers give much attention. Because of it, quality of services basically enhances the popularity of the firm. Vijayadurai (2008) suggested the service delivery, reliability, assurance and responsiveness as factors that influence customers’ perception of service quality in customer relationship management. (Jain & Jain, 2006) argued that customers give high ranks to value preposition and low ranks to personalization from a list of seven variables related to customer satisfaction (value preposition, recognition, customer orientation, reliability, relationship oriented, credibility, personalization and gestures). Bennett (1996) identified simplicity, genuine concern for delivery of high quality services, responsiveness to customer suggestions, fair dealings and willingness to sacrifice short-term advantage for long-term gains as the characteristics of CRM strategy and practices.
209
Reinartz (2004) said that CRM as systematic process which keeps managing customer relationship initiatives in order to maximize the value of the relationship portfolio and it also introduced to frequent traveler program in particular company. Schneider and Bowen (1999) indicated that retaining customers and achieving profitability largely depends on practices such as building reciprocal relationships founded on safeguarding and affirming customer security, fairness and self esteem. It is also observed that maintaining lifelong relationships has its roots in values and practices such as mutual exchange, fulfillment of promises, ethical business practices, effective communication and emotional bonding (Bejou, 1998). Trust and commitment are noted as key elements in the practice of managing relationship between the customers and the organization (Jain, Jain, & Dhar, 2007; Wetzel, 1998; Morgan & Hunt, 1994). Abhijeet Singh (2011) state that Tata Motors uses a customer relationship management and dealer management system (CRM-DMS) which integrates one of the largest applications in the automobile industry, linking more than 1200 dealers across India. CRM DMS has helped Tata Motors to improve its inventory management, tax calculation and pricing. This system has also proved to be beneficial to dealers because it has reduced their working capital cost. Biswajit Mahanty and Virupaxi Bagodi (2006) state that the success of two wheeler manufacturers in India depends on the competitive advantage gained by them through after sales service and providing and maintaining customer satisfaction in the face of rapid changes in technology is a difficult task, which can be overcome by timely addition of capacity and upgrading of technical manpower and focusing on the CRM programs. Sheedy (1997) in the banking sector found that many banks have adopted the culture of relationship marketing. Strong competitive forces have compelled banks to follow a Relationship marketing practice that is CRM and restructure their marketing strategies. Researchers have found several reasons to link CRM with Strategic Marketing in banks. An organizational perspective CRM or Strategic level CRM is required in guiding the CRM strategy in banks. Banks can gain a sustainable competitive advantage over their competitors, if they maintain a good and long-term relationship with their customers (Bose, 2002; Coltman, 2007; Gilbert & Choi, 2003; Thompson, 2004). Today, building a competitive advantage is based on how well a bank serves its customer and for this banks are needed to introduce customer-centric approaches than traditional productcentric approach. Banks have realized the importance of CRM and its potential to help them acquiring new customers, retain existing ones, and maximize their lifetime value. In order to do this, banks must have an effective CRM implemented.
210
Magnini, Honeycutt and Hodge (2003) suggested that CRM can only achieved though highly personalized service at each customer touch point and only few companies in the hotel industry appear to have reached this stage. For the purpose of effective CRM strategies in hotel industry, various authors have conflicted the important points related with this topic. Dowling (2002) said that Hotel industries always try to keep a close relationship with their customer, but the real focus on the local relationship between one hotel and the client. Sigala (2005) orated the business processes in organization, comprehensive understanding of the customer base and technology for implementation of CRM. Sigala also implied the regular customer feedback from hotel guests irrespective of their profitability, customer base, culture, environment for CRM to be effective in the hotel industry. Sigala again state that in her study that CRM is an imperative strategy for attracting and magnifying the guest care in the hotel industry. Osman and Hemmington (2009) stressed on transactional marketing rather than relational marketing. They determined in their study that transactional marketing is an effective strategy for the hotels. It is an eminent approach for creating guests loyalty in the hotel industry. Furthermore, they also identified an alternative approach to customer loyalty through transactional marketing rather than relational approach to maintain long term relationships with customers; transaction approach to marketing boosts the customer loyalty as it involves a sense of transparency and consistency while dealing with customers. Emperger (2004) lightened the official extracts from qualitative analysis of his study, such as guest profile management, campaign management and security management, referred the appointment of external consultants or CRM software companies to alter the business culture of the hotel company as customer focus mandates change in business procedures. Sigala and Christou (2002) notified that CRM is an effective strategy to gain competitive advantage in current market scenario for the hotel industry. (Lo, 2010) pointed out CRM activities in the hotel industry, which helps hoteliers to consider a better understanding of customers’ requirements and expectations, managing the need of customers and life cycle of the customers. Zineldin (2003) orated that customer relationship management is a complex and holistic concept requiring appropriate business process and integrated systems. Moreover, it also mandates effective system integration, information sourcing, targeting, leadership and evaluation within CRM strategies. Zinelin (2006) again added that customer loyalty and competitive positioning can be achieved by the organization through superior product, service quality, product differentiation, and CRM. He further
211
emphasized that high quality product and service along with CRM give the opportunity to provide customer something new, distinctive and special. Pyne and Frow (2005) emerged definitional aspect of CRM and identified three perspectives of CRM, moreover they emphasized on the need for cross functional, process oriented approach in CRM at a strategic level. They identified five key crossfunctional of CRM processes namely information management process, value creation process, multichannel integration process, strategic development process, performance assessment process. They developed a new conceptual framework of CRM based on these processes and have defined the role and functions of each element in the framework. Ryals (2005) described that CRM endeavors provide greater profitability of the organization. However, CRM should be implemented effectively. Customer relationship can be effectively implemented by using various knowledge management measures such as technological tools and informational infrastructure etc. Dyche (2001) suggested CRM can be distributed into following main categories i.e. operational CRM, analytical CRM and collaborative CRM. The operational CRM facilitates the organization to face the customer, while analytical CRM in which customer data are used in such a way that nurture the relationship with customers, tools like data warehousing and data mining are used in analytical CRM. Collaborative CRM is an approach of collaboration with customers through several channels which enhance the quality of customer interaction. Sin (2004) developed the CRM scale in which he has elicited four major constituents of CRM namely key CRM organization, customer focus, knowledge management, and technology-based CRM. Key customer refers the profitable or important customers. The CRM organization encompasses organizational structure, organization wide commitment, human resource management etc. Knowledge management refers the knowledge generation, learning, dispersal, sharing and responsiveness, whereas technology based CRM calls for all measures to be included which make organization IT enabled. Ryals (2005) said that again on value of customers and customer management strategies are interlinked with each other, while (Payne &Frow, 2005) said that value creation process in which customers and the organization receives value is an interconnected process with the other linked process of relationship management. Christopher (1991) conversed about relationship approach in effective marketing and argued that the relationship based approach is required as a new way of effective marketing environment, they further emphasized that one-to-one relationship is required to make the customer happy as well as organization profitable.
212
Reinartz and Kumar (2003) developed a framework to suggest the projection of profitability of customers. They developed various key implications which are useful for decision makers in long term relationships. Ryals (2005) explained that retention of customers is not only an important area, but retention of profitable customers is decisive for any company. Osarenkhoe and Bennani (2007) rationalized in their study that degree of success is purely based on the level of involvement of employees of the organization at several organizational stages. Furthermore, they elicited in their study that involvement of top management, systematic communication, customer loyalty; training programs are very authoritarian in successful CRM implementation. Srinivasan and Moorman (2005) have nodded out in their research that prior strategic commitments consign impressive results on the performance of CRM investment. Love (2009) educed that top management support is consequential in successful implementation of CRM because employees will not follow the new ideas until executive do not show high level commitment in it. Gustafsson (2005) discussed that customer retention is possible with the help of customer satisfaction, affective commitment and evaluative commitment. Harrison (2004) remarked that companies must proactively assist during every stage of the buying process and continuing the bolster after the sale. They advocate over the use of business to business relationship practices. Tanner (2005) expressed theorganizational structure and account management yearns to be addressed in CRM. They emphasized that all care should be taken into consideration in the adoption of the CRM special effect of environment and cultural factors on employee. Companies should address the operational issues concerning in the implementation and maintenance of CRM strategies. Bendapudi and Leone (2002) lightened over the relationship of employee and customer, elicited that sometimes employees and customers have stronger relationship rather than firm-customer relationships. They proposed the management of customerfirm relationship and the firm-employee relationship. The firm should offer more service, emphasis on corporate citizenship, and develop more sources of links for customer contact. Mithas (2005) in their study that CRM applications enhance the customer knowledge when firms share more information with their supply chain partners. Their study also determined the mediating role of customer knowledge in effect of CRM applications on customer satisfaction. Customer relationship perception and relationship marketing instruments are very effective in customer retention and customer share development.
213
Morgan and Hunt (1994) in their research on relationship marketing remarked that relationship marketing constitute a base for “establishing, developing and maintaining successful relational exchanges”. Taylor (2009) stressed on relationship commitment and trust for successful relationship marketing and argued that CRM also enlightens in terminating unprofitable customers though analytical CRM. Zeblah (2003) conversed that CRM is “a philosophically-related offspring to relationship marketing which is neglected in the most part of the literature.” Based on these several contributions, it can be inferred that CRM concept is very vast and researchers have defined it in different ways. Researchers emphasized on various issues but especially on loyalty and retention of customers. Furthermore, it can also be inferred that CRM leads to the loyalty of customers and that will ultimately result in the retention of the customers for a long time. Conclusion In addition to that CRM is important to other industry also such as hospital, healthcare industry, insurance sector, airlines industry and many more; here CRM crucial points of view and it play a great role in these industries in India.In addition to that CRM has some obvious benefits for the hotel industry, but these are not especially different than they are for any other industry such as increasing customer satisfaction and retention, increasing repeat business, increasing share of category spend, and increasing likelihood of referrals business. Now here we can say that Successful implementation of CRM programs need a strategic approach in carrying out activities such as developing customer centric process, selecting and implementing technology solutions, employee empowerment, customer information and knowledge generation capabilities to differentiate them, and the ability to learn from the best Practices. References Abdallah, H. S., & Assabil, E. (2011). Customer relationship management (CRM) practices,: A case of hotels in ashanti region of Ghana. 1-88. Almotairi, M. (2008). CRM success factors taxonomy. European and Mediterranean Conference on Information Systems (pp. 1-11). Business school, Brunel University, UK. Arul, C. (2012, october-december). Customer relationship management practices of hotels. International Journal of Logistics & Supply Chain Management Perspectives, 1, 64-66. Banga, G., Kumar, B., & Goyal, H. (2013). Customer relationship management in hotel industry. Pacific Business Review International, 5(12), 71-81. Bejou, D. (1998). Trust, ethics and relationship satisfaction. International Journal of Bank Marketing, 16(4), 170-175. Bendapudi, N., & Leoane, R. P. (2002). Managing business to business customer relationships following key contact employee turnover in a vender firm. The Journal of Marketing, 66(2), 83-101.
214
Bennet, R. (1996). Relationship formation and governance in consumer markets:Transactional analysis versus the behaviorist approach. Journal of Marketing Management, 16(4), 417-436. Bose, R. (2002). Customer relationship management: Key components for IT success. Industrial Management and Data Systems, 10(2), 82-97. Brown, D. (2008). www.enterprisecrmnews.com. Retrieved from Why CRM important. Bull, C. (2003). Strategic issues in customer relationship management (CRM) implementation. Business Process Management Journal, 9(5), 592-602. Buttle, F. (2004). Customer relationship management: Concepts and tools (Vol. 13). Sydney: Elsevier. Chen, I. J., & Popovich, K. (2003). Understanding customer relationship management (CRM) people, process and technology. Business Process Management Journal, 9(5), 672-688. Christopher, M., Payne, A., & Ballantyne, D. (1991). Relationship marketing, bridging quality, customer service and marketing together. Butterworth- Heinenann, Oxford, 31(91), 1-25. Coltman, T. (2007). Can superior CRM capabilities improve performance in banking? Journal of Financial Services Marketing, 12(2), 102-114. Devendra, A. (2001). The hotel industry in India-The past and the present. Journal of Hospitality Financial Management, 9, 65-73. Dowling, G. (2002). Customer relationship management: In B2C markets, often less is more. California Management Review, 44(3), 87-104. Dyche, J. (2001). The CRM handbook: A business guide to customer relationship management. Addison-Wesley Professional. Emperger, W. (2004). Customer relationship management in the hospitality industry. MBA Dissertation, Henley Management College, 2-67. Fletcher, K., & Wright, G. (1996). The strate context for information systems use: An empirical study of the financial services industry. International Journal of Information Management, 16(2), 119-131. Gaur, S. S., & Waheed, K. A. (2003). Motivations to use interactive technologies in marketing:A study in indian service businesses. Journal of Services Research, 3(1), 81-98. Gilbert, D. C., & Choi, K. C. (2003). Relationship marketing practice in relation to different bank ownerships: A study of banks in Hongkong. International Journal of Bank Marketing, 21(3), 137-146. Goyal, H. (2011). A study of customer relationship management (CRM) practices followed by the hotel industry in Ludhiana. Ludhiana, Punjab, India: Punjab Agriculture University. Gray, P. (2001, march). Customer Relationship Management. Center for Research on Information Technology and Organizations, 3(6), 1-56. Gustafssn, A., Johnson, M. D., & Roos, I. (2005). The effect of customer satisfaction, relationship commitment Dimensions, and triggers on customer retention. The Journal of Marketing, 69(4), 210-218.
215
Harrison, L. J., & Neeley, S. E. (2004). Customer relationship building on internet in B2B marketing: A proposed typology. Journal of Marketing Theory and Practice, 12(1), 19-35. Jain, R., Jain, S., & Dhar, U. (2007). A scale for measuring customer relationship management effectiveness in service sector. Journal of Services Research, 7(1), 97-107. Jain, S., & Jain, R. (2006). Towards relational exchange in service marketing: Insights from hospitality industry. Journal of Services Research, 5(2), 139-149. Lo, A. S. (2010). Customer relationship management for hotels in Hongkong. International Journal of Contemporary Hospitality Management, 22(2), 139-159. Love, P. (2009). Beyond the red queen syndrome: CRM technology and building material supplier. Engineering Construnction and Architectural Management, 16(5), 459-474. Luck, D., & Stephenson, M. L. (2009). An evaluation of the signifi cant elements of customer relationship management within the hotel industry. The Journal of the College of Tourism and Hotel Management, 7-26. Magnini, V. P., Honeycutt, E. D., & Hodge, S. (2003). Data mining for hotel firms: Use and limitations. Cornell Hotel and Restaurent Administration Quarterly, 9(4), 94-105. Mahanty, B., & Bagodi, V. (2006). Unfolding The learning disabilities using qualitative analysis: The twowheeler service sector in India. International Journal of Technology, Policy and Management, 6(2), 221-235. Malik, G., Ahlawat, S., & Jyoti. (2013). Determinants of customer retention in hospitality industry. International Journal of Research in Economics & Social Sciences, 3(7), 51-57. Mehta, D., Sharma, J. K., & Mehta, N. (2010). A study of customer relationship management practices in Madhya Pradesh state tourism services. Theoretical and Applied Economics, XVII(5), 73-80. Mithas, S. (2005). Why do customer relationship management applications affect customer satisfaction? The Journal of Marketing, 69(4), 201-209. Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58, 20-38. Newell, F. (2000). www.loyalty.com. Customer Relationship Management in the New Era of Internet Marketing, 299-305. Osarenkhoe, A., & Bennani, A. E. (2007). An exploratory study of implementation of customer relationship management strategy. Business Process Management Journal, 13(1), 139-164. Oswan, H., & Hemmington, N. (2009). A transactional approach in creating customer loyalty in the hotel industry. International Journal of Contemporary Hospitality Management, 21(3), 239-250. Parvatiyar, A., & Seth, J. N. (2001). Customer relationship management: Emerging practice, process, and discipline. Journal of Economic and Social Research, 3(2), 1-34. Pathak, P., & Modi, P. (2004). Quality of services: Issues and challenges, An indian perspective. Synergy Journal of Management, 6(1), 75-80.
216
Payne, A., & Frow, P. (2005). A strategic framework for customer relationship management. Journal of Marketing, 69(4), 167-176. Piskar, F., & Faganel, A. (2009). A successful CRM implementation project in a service company : Case study. Organisation, 42(5), 199-208. Rahimi, R. (2007). Feasibility study of customer relationship management application in hotel industry. Case of Hamgame Arya Group Hotels, 1-99. Reinartz, W. (2004). The customer relationship management process: Its measurement and impact on performance. Journal of Marketing, 41, 293-305. Reinartz, W. J., & Kumar, V. (2003). The impact of customer relationship characteristics on profitable lifetime duration. Journal of Marketing, 167(1), 77-99. Richard, J. E. (2007). An examination of customer relationship management (CRM) technology adoption and its Iimpact on business to business customer relationships. Total Quality Management, 18(8), 927-945. Roberts-Witt, S. L. (2000). It’s the customer, stupid! PC Magazine, pp. 6-22. Ryals, L. (2005). Making customer relationship management for work: The measurement and profitable management of customer relationships. Journal of Marketing, 69(4), 252-261. Schneider, B., & Bowen, E. D. (1999). Understanding customer delight and outrage. Sloan Management Review, 41(1), 35-45. Shanthi, N. M. (2005, january). Managing customer relationship. Marketing Mastermind. Shari, S. C., & Ko, Y.-F. (2006). Understanding the technology and organizational elements of customer relationship management systems. Proceedings of the Twelfth Americas Conference on Information Systems, Acapulco, Mexico 2006. Sheedy, E. (1997). Marketing derivatives a question of trust. International Journal of Bank Marketing, 15(1), 22-31. Sigala, M. (2005). Integrating customer relationship management in hotel operations, managerial and operational implications. International Journal of Hospitality Management, 24, 391-413. Sigala, M., & Christou, E. (2002). The transformative power of E-commerce on hotel brands. Annual European Council for Hotel, Restaurant and Institutional Education Conference Proceedings of International Conference in Barcelona. Spain. Sin, L. Y., Tsc, A. C., & Yim, F. H. (2005). CRM conceptualization and scale development. European Journal of Marketing, 39(11), 1264-1290. Singh, A., & Kumar, B. (2011). Customer relationship management tools: An overview. Marketing Mastermind, 11, 23. Srinivasan, R., & Moorman, C. (2005). Strategies firm commitments and rewards for customer relationship management in online retailing. Journal of Marketing, 69(4), 193-200.
217
Swift, R. S. (2001). "Accelerating customer relationship management: Using CRM and relationship technologies". New Jersey: Prentice-Hall PTR. Tanner, J. F. (2005). CRM is sales intensive organisations: A review and future direction. The Journal of Personal Selling and Sales Management, 25(2), 169-180. Taylor, P., Kim, E., & Lee, B. (2009). Strategic use of analytical CRM in a market with network effects and switching costs : Terminating unprofitable customer relationships. Journal of Organisational Computing and Electronic Commerce Management, 19(3), 153-172. Thompson, B. (2004). Successful CRM: Turning customer loyalty into profitability. Rightnow Technologies, 1-14. U, M. N. (2012). Customer relationship management in hospitality sector. Journal of Good Governance and Sustainable Development, 1(1), 40-47. Vijayadurai. (2008). Service quality, customer satisfaction and behavioural intention in hotel industry. Journal of Marketing and Communication, 3(3), 14-26. Wetzels, M. (1998). Marketing service relationships : The role of commitment. Journal of Business and Industrial Marketing, 13, 406-423. Winner, R. (2001). A framework for customer relationship management. California Management Review, 43(4), 89-106. Wyner, G. A. (1999). Customer relationship measurement. Marketing Research, 11(2), 39-41. Yim, F. N., Anderson, R. E., & Swaminathan, S. (2004). Customer relationship management: Its dimensions and effect on customer outcomes. Journal of Personal Selling & Sales Management, XXIV(4), 263278. Zeblah, A. R., Danny, N. B., & Wesley, J. J. (2003). Customer relationship management: An explication of domain and avenues for further enquiry in relationship marketing. (E. in Micheal Kleinalterkamp and Michael Ehret, Ed.) Cooperation- Competition- Co-evolution, pp. 115-124. Zineldin, M. (2006). The royalty of loyalty: CRM, quality and retention. Journal of Consumer Marketing, 23(7), 430-437.
218
INCORPORATING SOCIAL MEDIA WITH CRM Swikrati Singh Abstract Business these days is not justmanagement of internal organization but management of customers, their perception and attitude towards the company. Earlier this work was done by call centers of company, but with the explosion of social networking sites, the company has to be present where their consumers are. Management is all about conversation with customers. Hearing them carefully is what is required; making them feel special and engaged is what SCRM all about. The paper discusses why SCRM is important for business, what precaution a company must take and its advantages for them. Keywords: Web 2.0, CRM, social media. “A satisfied costumer tells three friends; angry costumers tell 3000” Pete Blackshaw. Introduction CRM means Customers relationship management, which means customers oriented way of management. It is a relationship of trust and commitment which is built over years. The rationale to establish long-lasting relationships are positive direct effects, e.g. higher revenues and lower costs (Reichheld & Sasser, 1990); and indirect effects, e.g. the influence on other relations due to recommendations (Boulding, Kalra, Staelin, & Zeithaml, 1993). Web 2.0 principles and Social media facilitate a co creation of value and relationship management. In the era of internet marketing is just not communication but a conversation with customers which is two ways. Social CRM is the relationship between customers through social media. Research Methodology Descriptive analysis was used as research methodology. Information and data was collected through various journals, newspapers, websites, and reports. Review of Literature: Lehmkuhl Tobias & Jung Reinhard (Jun 2013) suggested SCRM a blend of technology and consumers’ relationship. The change in society has brought empowerment to the internet user. Patil, suggests that SCRM give businesses a way to manage and measure how they use social networking while successfully engaging social customers. CRM and Social MediaTraditional CRM consistedof brick and mortar and call center where the reply and conversation is designed by the company. Social CRM has given new dimension to traditional CRM. There are millions of users on Twitter, Facebook, LinkedIn. According to IBM survey, 79% of the companies have an account on websites like Facebook, Twitter, blogs, slide shares, YouTube. If the companies are not on such
219
accounts they will be out of touch, so they have to imbibe social media in their working. According to Facebook statistics of 2010 there are 750 million Facebook users worldwide. 80% of consumers want a dialogue with the brands they purchase. 78% internet user trust the recommendation posted on social site, in comparison with 14% for advertisement. The consumer wants meaning full engagement with the customers. Social Media is an arena where unlimited people come and meet. Likeminded people form a temporary group. These groups can sometime gather momentum on a topic and create snow ball effect and exerts pressure on the companies. It is an unlimited source of original customer’s opinion, feedback, which can be used for the improvising the product and services. Now the customers do not go to the showroom to get information about product. They get presale information about product through these social media and removes barriers from their mind. Customers are not hesitant to share their experiences either good or bad on social networking. Any bad experience shared can tarnish the image of company and create a snow ball effect. A dissatisfied or unheard customer shares his experience among the other consumers. The company has to be quick enough like any other internet user to repair the damage. Such feedback should be tracked and the companies should participate in such communities and give their feedback there and there on the website. Such feedbacks should be kept safe, so that it gives ideas for product development. It helps to create brand awareness. It helps to track the competitors. The consumers need to be kept engaged and felt special, the customers feel special when they get discounts, and hearing to the complaints like the delivery was not on time, timely issue of airline tickets or by giving thanks to customers for their suggestions. Social CRM increases customer’s loyalty which indicates market share. Once this loyalty is created, it must be rewarded, so that these consumers keep coming back. According to Social Media Participation Pyramid developed by Jacob Neilson 1% of individual starts the conversation. 9% contribute to the conversation and 90% follow the conversation. These passive customers cannot be ignored and they should feel the sense of belongingness according to Thierry Spencer, co-founder ofTestntrust. The management of social media should be done by various departments of the company. Traditional CRM was all about collecting and managing data relating customers. The companies look at customers’ interaction life cycle, comprising of consumers targeting, consumers acquisition and consumers’ retention. It is a one-way communication where the consumers have no voice. But modern CRM has given voice to consumers. They want to interact with the companies and talk of their brands. The biggest challenges faced by the companies are to get database of customers. When any customers download Facebook app or any brands app, or be followed by any brand on twitter, the company gets a complete database of customers’ history, preference, profile and gets a chance to get close to customers. The next challenge is to make sense of tweets and comments and use it constructively for the company. Handling such accounts is what companies are grappling, so the companies give training to employees to handle their
220
social networking website. One wrong post can tarnish the image of it. Social CRM is all about managing dialogue rather than customers, for that the companies need to come in their arena, it is an environment where the control is with the customers. The employees reply individually to the mails, tweets and blogs.
Source: IBM report on’ From social media to social CRM’. Reinventing customers’ relationship Advantages of a Social CRM Social Media is a good platform of marketing, product advocacy, and brand reputation, with incurs less cost. Social CRM helps in sales also. Dell is the perfect example of it. Proctor and Gamble old spice ad on YouTube helped to increase the sales in double digit. It is a perfect platform of handling customer’s grievance, which the customers upload on the company’s website. Customers’ comments and feedback are dealt speedily. Lenovo reduced it service call volume by 20%, thereby reducing cost of servicing. Starbuck had invited customers view and idea on their portal “My Starbucks Idea” for the improvisation of their product. This known as “crowd sourcing”. In short social media is providing all functions of marketing, sales, customer’s services and product development. Can social media influence be calculated? The biggest question is can the influence of social media be calculated? Can the success of companies be tracked on the basis of social media engagement? Some believe that it 221
is difficult to quantify the impact of social media. Some believe that the real ROI of any company is that the company is going strong since 5 yrs. in the market. Twitter and Facebook had developed many yardsticks for calculation like MBlast, PeerIndex, Twitalyzer and Klout. Out of it Klout has gained popularity and provides practical tool in decision making, in spite of its weakness. The company should focus on developing relationship with the consumers. Another way to calculate is SocialMetric. It involves Awareness: Site visit, page views, search engine visibility, search volume trends. Engagement: No. of interaction, time spend with distributed content, visit to identified pages, satisfaction score. Participation: Installs, No. of downloads/ uploads, no. of likes/ dislikes, retweets, no. of votes. Influence: Share of voice, sentiments of post, influencer by post, by domain, by topic and influencer impact. Dell case study: Dell is an example of a company who has successfully sold JetBlue and Zappos products on twitter. Dell has been meeting the expectation of consumers by creating its account on social media @dellOutlet. Challenges before Companies regarding Social CRM The challenge before companies is to identify the required and useful information and identify what is just noise and irrelevant. Secondly the employees replying the comments and handling such portal should be trained and on their toes because the consumers post even on Sundays and other holidays. Before jumping into the arena of social media, the company needs to strategize and think the goals and objectives of the company. According to CRM guru, Paul Greenburg, social CRM is meeting the expectation of customers and at the same time meeting the agendas of the company. Minimizing loss Negative brand image and exposure are the top priority of the companies. 39% of companies use brand monitoring software vendors to manage their brand image. Such software can be used defensively to get awareness of potential negative exposure. Second challenge is how to control the employee’s social networking sites. The best solution is to formation of corporate guidelines for using social media and training the employees to take informed decision, which are in align with the companies norms ,25% of the companiessays they have such guidelines. Conclusion The companies these days cannot keep them away fromsocial networking. The 2.0 Web era has given a cost effective technique to stay connected with the customers and make them feel like a part of their family and keep them very connected so that brand loyalty 222
can be created. Negative comments are read by many internet users and can cause damage to the firm which should be repaired. Special care must be taken replying them back; employees must be trained and there must proper guidelines set by companies. There must be personal touch in replies and should not look computer generated. To blendcompanies agendaswith customers agendasis the key to success. References 1. Atos Consulting & MSL Group. (n.d.), Document on Social CRM: towards Enhanced Customer Relationship Management, Retrieved from https://atos.net/content/dam/global/we-do/atos-social-crm-white-paper.pdf. 2. Bhaiya, A. (2015), Social CRM: The game changer for companies that want to engage with their customers [Blog post]. Retrieved from http://www.huffingtonpost.com/amit bhaiya/social crm the game chang_b_6673028.ht ml?ir=India&adsSiteOverride=in 3. Boulding. W., Staelin, R., Kalra. A. & Zeithaml, V. A. (1993). A dynamic process model of service quality: From expectations to behavioral intentions. Journal of Marketing Research, 30, 7-27. 4. IBM Institute for Business Value (2011), Executive Report on from Social Media to SocialCRM, Retrieved from https://www.ibm.com/smarterplanet/global/files/se__sv_ _commerce__from_social_media_to_social_crm.pdf. 5. Microsoft dynamics report. (n.d), Report on CRM and Social Networking: Engaging the Social Customer. 6. Reichheld, F.F. & Sasser, Jr., W.E. (1990). Zero defections. Quality comes to services. Harvard Business Review, 68(5), 105-111. 7. Tata Consultancy Services (2012). Report on Social CRM Possibilities and Challenges, Retrieved from http://www.tcs.com/SiteCollectionDocuments/White%20Papers/Conn ected Marketing_Whitepaper_Social_CRM%E2%80%93Possibilities_Challenges_09121.pdf. 8. Megha, P. (n.d.). Social media and customer relationship management. Retrieved from iosrjou rnals.org/iosr-jbm/papers/ncvbm/volume-1/5.pdf 9. Tobias Lehmkuhl and Reinhard Jung (2013). Towards Social CRM – Scoping the Concept and Guiding Research. BLED 2013 Proceedings. Paper 14. http://aisel.aisnet.org/bled2013/14
223
Section IV Sales and Retailing
INFLUENCE OF STORE ENVIRONMENT ON STORE IMAGE Dr. Garima Mathur, Sakshi Bhedak, Anjali Tomar Abstract A huge amount of researches have been done on attracting customers towards stores. The major contributor in this regard is the image of any store in the minds of customers. As defined by Martineau (1958) store image is the way in which the store is defined in the shopper’s mind, partly by the functional qualities and partly by an aura of psychological attributes. However, this image is dependent upon certain attributes present in the store. The study is intended to find out whether store environment attributes like the ambience, light music, hygiene, space in the store have the effect on the store image or not, if it have how the shopkeeper can make it better and use it to increase its image and sales. The results indicate that store environment contribute significantly in building store image. Keywords: Store Environment, Store Image, Retail Outlets, Customers Introduction Gone are the days when quality alone used to be the promising thing for sales (Lin, M. Q., & Chiang, Y. F, 2010). There is a shift in the perception of consumers from product and service to the experience (Schmitt, 1999). It is the experience that makes a customer loyal or forces him to switch from service or product. In fact, to attract customer and retaining them is becoming a biggest challenge. Once a customer arrives at the store the efforts are made to the fullest to create store image then and there only. To enhance the image of any store it is necessary to create an environment favorable for the customers to shop (Dunne and Lunsch, 2005). A number of researches have been done in the area of improving brand image but the number is lesser in the area of store image construct. Turley& Milliman (2000) emphasized on the importance of Store atmosphere in the success of a retail outlet. Till the beginning of this century not much work was done to examine store environment and its cues to build a reputation among customers. The present study aims at studying the relationship between store environment and store image. In this regard Peter, Olson (2005) stated that “Store environment and design is made of several aspects including cleanliness, music, display, lightingetc. store image can basically be defined as customers perception of a store, or in other words what customers think of a store based on the stimuli they receive with their senses” (p. 484-485). Lighting with varying intensity, is one of the strong predictor for store environment perception (Hopkinson et al. 1966; Kumari and Venkatramaiah, 1974) along with cleanliness (Baker et al., 1994). This is further supported by (Bitner, 1992; Markin, Lillis and Narayana,
225
1976) that environment includes cues, messages and suggestions to consumers. Furthermore, store environment can be characterized as outside to the individual being considered, indicating that it should be measured independently (Mehrabian and Russell, 1974). Tai and Fung (1997) statedthat retailers design the store in a way that will improve buyers' certain emotions specifically when price variations are relatively less. It includes the thingswhich are going to prompt eagerness, that further results in to more shopping and commitment to the store (Mano, 1999). Literature Review A significant contribution has been made by Baker et al (2002) in identifying relationship between store environment and store image. Store image as an idea in the improvement of retail identity, advertising specialists have given significant regard for adding to the thought that purchasers hold images of specific stores in their brains (Chowdhury et al., 1998; Berry, 1969; Kasulis and Lusch, 1981; Marks, 1976). Although definitions vary, store image has generally been defined as the way in which the store is defined in the shopper’s mind, partly by the functional qualities and partly by an aura of psychological attributes (Martineau, 1958) among other relationships that can be found in the literature, extant research has suggested that store image is a predictor of the retailer choice (e.g., Grewal et al., 1998; Hildebrandt, 1988; Schiffman et al., 1977). Berman and Evans (1998) said that the look of a store should be unique and have some connection, which should be properly organized in a systematic way the store have some uniqueness to attract the consumer. Grewal et al. (2003) studied that consumers are not very much safe towards the online shopping confusion is there towards the size, quality, quantity of the product, sometimes the product shown in the image that’s exactly doesn’t match with the real one so it’s better to purchase with the store. Store which has more creativities leads to more attracted consumers & surroundings are also very convenient to shop for the consumer due to the innovation (Gutman and Alden, 1985; Mazurasky and Jacoby, 1985) consumers enjoys the graphics, pictures (Marsh, 1999). Whole store impression is reflected by the store innovation, that’s the only thing which can attract the consumer (Keaveney & Hunt, 1992) store should show both internal and external objective that consumer come to know about what he is trading, which can built a link between the consumer and the seller (Baker, Grewal & Parasuraman, 1994; Mazursky & Jacoby, 1986). Store should be located on a good location and on good surrounding so that every consumer can reach their easily, shopkeeper can provide proper facilities to the consumer like qualitative product on reasonable rate, provide hygiene, Bearden (1977) stated that a seller should give surety of his quality and quantity for product so that consumer can faith on them so their goodwill can maintain in the mind of customers, this faith makes the consumer come again & again (Dick & Basu, 1994).
226
Seller should make their product more creative, attractive, innovative & labeling it as it should show the full information about the product, which make the consumer force to buy at first sight (Gutman and Alden, 1985; Marsh, 1999). In today’s era the retailer found more difficulty to differ their stores from others store on the basis of promotion, price, location,although the stores can influence the customer by giving them a unique atmosphere (Kotler 1973-74).According to McGoldrick and Pieros (1998), retailers should focus on in store environment by using designing strategies to create the positive mood in customer towards the store, so that they feel their money is utilized in some good place, and come for re-purchases.Music refers towards positive feeling of customer, it increase the interest and change the perception of customer towards the shop (Chandon et al.,2009). Retailer can increase the excitement and desire of customer by changing its outer view and inner view of shop (Wakefield and Blodgett, 1994). On the basis of above literature, the hypothesis for the study is: Hypothesis: There is no influence of store environment on store image. Research Methodology The study was causal in nature. The data has been collected through survey. Individual customer who shop from retail outlets of Mall were asked to fill questionnaire. The data has been collected from the young respondents between age group of 18 to 23 years. Non probability, purposive sampling technique was used to identify the respondents of the study, as the respondents were asked for their willingness to fill questionnaire. Data was collected from a sample of 100 customers. Although standardized measures are available to evaluate in store shopping environment and store image, the experiences and perception of Indian customers with respect to shopping environment may be different and therefore self designed questionnaires were used to measure these variables. Separate measureswere prepared to evaluate each variable. The data was collected on the scale of 1-5 where 1 will indicate minimum agreement with the statement and 5 will indicate maximum agreement. Results and Discussion Store Environment Reliability Statistics Cranach’s Alpha N of Items .700
227
6
Store Image Reliability Statistics Cranach’s Alpha
N of Items .645
4
The reliabilities of the six scaled items for Store Environment and four itemed scale were calculated using Alpha reliability. Cranach’s Alpha coefficient examines the internal consistency of scaled items by examining the average inter-item correlation (Le& Whelan, 2008). Calculation of Cranach’s Alpha coefficients provides the researcher with information on which questionnaire items are related to each other and which items should be removed or changed. Pallant (2007) stated that Cronbach’s Alpha is considered as fundamental measure of the reliability of research instruments. The reliability for store environment was .700 and for store image was .645. According to Nunnally (1967) Cranach’s Alpha coefficient values above 0.6 are considered to be acceptable. Regression Model Summaryb Model R R Adjusted Std. Change Statistics Square R Square Error of R F df1 df2 the Square Change Estimate Change a dimension0 1 .673 .453 .448 2.42062 .453 89.290 1 108 a. Predictors: (Constant), Store_Env b. Dependent Variable: Store_Image
Sig. F Change .000
The Result of model summary indicated through R2 value which was found to be 0.453, indicating that 27.5% variance in Store Image is explained by Store environment. ANOVAb Model Sum of Squares Df 1 Regression 523.185 1 Residual 632.815 108 Total 1156.000 109 a. Predictors: (Constant), Store_Env b. Dependent Variable: Store_Image
Mean Square 523.185 5.859
F 89.290
Sig. .000a
The F value indicates that the model has statistically significant predictive capability, since it is significant at (F Value= 89.290) .000 level. Model
Unstandardized Coefficients B Std.
Coefficientsa Standardized Coefficients Beta
228
T
Sig.
Correlations Zero-
Partial
Part
Error (Constant) 2.927 1.194 Store_Env .511 .054 a. Dependent Variable: Store_Image
order
1
.673
2.451 9.449
.016 .000
.673
.673
.673
The contribution of individual independent variable was evaluated through computation of β value for the independent variable Store Environment was 0.673 with the T-Test value of 9.449 which was significant at 0.000, indicating that Store Environment contribute significantly to the Store Image. Therefore, the Null Hypothesis was rejected, indicating that there is strong positive cause and effect relationship between Store EnvironmentandStore Image. As discussed earlier the ambiance of any store along with the music, fragrance (Mattila & Wirtz, 2001) and lighting etc. play a significant role in building a good impression. Since, the shopkeepers have many competitors including online purchase options, they are struggling to attract and retain customers. In fact, store environment helps in unplanned shopping also (Donovan et al., 1994) that ways increase sales. That is why it is important to build a positive image of any store. The researchers have already identified the importance of store environment in enhancing image worldwide long back (Lindquist, 1974; Darden, Erdem, Darden, 1983& Zimmer & Golden, 1988). Conclusion The study resulted in to similar findings as suggested by other researchers that Environment creates good image for any product. In fact, in the area where this study was conducted that is Gwalior city, there are changes taking place in the recent times. Public is getting familiar with Malls and retail outlets with better ambiance is preferred as they have opportunity to compare various stores. Hence, individuals evaluate any outlet on the basis of various things such as background music, display of items, over all layout of store. The study also contributed by indicating that store environment has good impact on store image. REFERENCES Baker, J. Parasuraman, A. Grewal, D.& Voss, G. B. (2002), The influence of multiple store environment cues on perceived merchandise value and patronage intentions, Journal of marketing, 66(2), 120-141. Berman, B. Evans, J.R. (1998), Retail Management: A StrategicApproach, sixth ed. Prentice-Hall, Englewood Cliffs, NJ. Berry, L. L. (1969), Components of department store image-theoretical and empirical analysis, Journal of retailing, 45(1), 3-20. Bitner, M. J. (1992), Servicescapes: The impact of physical surroundings on customers and employees, The Journal of Marketing, 57-71.
229
Chandon, P., Hutchinson, J. W., Bradlow, E. T., & Young, S. H. (2009), Does in-store marketing work? Effects of the number and position of shelf facings on brand attention and evaluation at the point of purchase, Journal of Marketing, 73(6), 1-17. Chandon, P., Hutchinson, J. W., Bradlow, E. T., & Young, S. H. (2009), Does in-store marketing work? Effects of the number and position of shelf facings on brand attention and evaluation at the point of purchase, Journal of Marketing, 73(6), 1-17. Chowdhury, J., Reardon, J., & Srivastava, R. (1998), Alternative modes of measuring store image: an empirical assessment of structured versus unstructured measures, Journal of Marketing Theory and Practice, 6(2), 72-86. Dick, A. S., &Basu, K. (1994), Customer loyalty: toward an integrated conceptual framework, Journal of the academy of marketing science, 22(2), 99-113. Donovan, R. J., Rossiter, J. R., Marcoolyn, G., &Nesdale, A. (1994), Store atmosphere and purchasing behavior, Journal of retailing, 70(3), 283-294. Dunne, P. &Lusch, R. (2005), Retailing (5th ed.), Thompson South-Western. Grewal D, Krishnan R, Baker J, Borin N (1998), The effect of store name, brand name and price discounts on consumers’ evaluations and purchase intentions, J Retail, 74(3):331 – 52 Grewal, D., Baker, J., Levy, M., & Voss, G. B. (2003), The effects of wait expectations and store atmosphere evaluations on patronage intentions in service-intensive retail stores, Journal of retailing, 79(4), 259-268. Gutman, J., & Alden, S. D. (1985), Adolescents' cognitive structures of retail stores and fashion consumption: a means-end chain analysis of quality. Perceived quality: how consumers view stores and merchandise/edited by Jacob Jacoby, Jerry C. Olson. Hildebrandt L (1988), Store image and the prediction of performance in retailing, J Bus Res,17(1), 91-100. Hopkinson, R. G., Petherbridge, P., &Longmore, J. (1966), Daylighting, Heinemann. Imran, M., Ghani, U., &Rehman, K. U. (2013), Consumer perception of store image and store loyalty, Journal of Managerial Sciences, VII (1), 76. Kasulis, J. J., &Lusch, R. F. (1981), Validating the retail store image concept, Journal of the Academy of Marketing Science, 9(4), 419-435. Kotler, P. (1973), Atmospherics as a marketing tool, Journal of retailing,49(4), 48-64. Kumari, Bharathi K. and S.R. Venkatramaiah (1974), Effects of Anxiety on Closure Effect Disappearance Threshold (Brain Blood Shift Gradient), Indian Journal of Clinical Psychology, 1, 114-20. Lin, M. Q.& Chiang, Y. F. (2010), The influence of store environment on perceived experiential value and behavior intention, Asia Pacific Management Review, 15(2), 281-299. Mano, H. (1999), The influence of pre-existing negative affect on store purchase intentions, Journal of Retailing, 75(2), 149-172.
230
Mano, H. (1999), The influence of pre-existing negative affect on store purchase intentions, Journal of Retailing, 75(2), 149-172. Marks, R.B. (1976), Operationalising the concept of store image, Journal of Retailing, 52, 37-46. Martineau, P. (1958), The personality of the retail store, Chapter in the book ‘Retailing- Critical Concept’ Eds. Anne M. Findlay and Leigh Sparks Volume III (ii), Routledge: London & New York. Martineau, Pierre (1958), The personality of the retail store, pp. 47-55. Mattila, A. S., &Wirtz, J. (2001), Congruency of scent and music as a driver of in-store evaluations and behavior, Journal of retailing, 77(2), 273-289. Mazursky, D., & Jacoby, J. (1985), Forming impressions of merchandise and service quality, Perceived Quality, 13-54. McGoldrick, P. J., &Pieros, C. P. (1998), Atmospherics, pleasure and arousal: the influence of response moderators, Journal of Marketing Management, 14(1-3), 173-197. Mehrabian, A., & Russell, J. A. (1974), An approach to environmental psychology, The MIT Press. Nunnally, J. C., Bernstein, I. H., & Berge, J. M. T. (1967), Psychometric theory (Vol. 226), New York: McGraw-Hill. Pallant, J. (2007), SPSS survival manual: A step-by-step guide to data analysis using SPSS version 15, Nova Iorque: McGraw Hill. Schiffman LG, Dash JF, Dillon WR (1977), The contribution of store-image characteristics to store-type choice, Journal of Retailing, 53: 3 – 14,46. (Summer) Schmitt, B. (1999), Experiential marketing, Journal of Marketing Management, 15(1-3), 53-67. Solgaard, H. S., & Hansen, T. (2003), A hierarchical Bayes model of choice between supermarket formats, Journal of Retailing and Consumer Services,10(3), 169-180. Tai, S.H.C. and Fung, A.M.C. (1997), Application of an Environmental Psychology Model to In-Store Buying Behaviour, The International Review of Retail, Distribution and Consumer Research,7(4), 311-337. Turley, L. W& Milliman, R. E. (2000), Atmospheric effects on Shopping Behavior: A Review of the Experimental Evidence, Journal of Business Research, 49(2), 193-211. Wakefield, K. L & Blodgett, J. G. (1994), The importance of servicescapes in leisure service settings, Journal of Services Marketing, 8(3), 66-76. Zimmer, M. R & Golden, L. L. (1988), Impressions of retail stores: A content analysis of consumer images, Journal of Retailing, 265-293.
231
A STUDY OF PERCEPTIONS TOWARDS SALES PERSON JOB CHARACTERISTICS AND JOB OUTCOMES Gaurav Jaiswal, Ravindra Pathak, Ram Paliwal, S. K. Singh Abstract The objective of this study to examined the relationship between perception of Sales Person towards Job Characteristics and Job Outcomes among the employees of Automobile Sector. The sample comprises of 150 employees and Non – Probability Purposive sampling technique was used to select the sample. Sales Person Job becomes more stressful now days because of ever increasing the targets. Their performance may depend upon various factors. This study indicated the relationship of employees Job Characteristics and Job Outcomes in the manufacturing organization. The results indicated that significant cause and effect relationship between Job Characteristics and Job Outcomes. Better a person perceived about his Job Characteristics better will produce the result at the job.
Introduction The success of any organization depends upon the ability to sell their products and services into the market. The role of the sales team was important for any organization. A strong team of sales persons can do miracle for the organization they can make the difference into the market and led the organization over their competitors. But in order to get this market position, some of the large organizations are now putting more pressure on their sales teams, forcing them for generating more businessthan ever. Long-term planning has gone away now, every month and quarter is the defining period in a salesperson’s life. The situation becomes worst, In case of smaller organizations. Small organizations monitored the sales person job very strictly, every day they monitor the business brings by the sales person and put them in more stress to bring more business every day. Needless to say, this is a state of panic for many sales teams who don’t know whether to be excited about a new prospect or continue searching for more avenues. Such organization practices unnecessary creating the extra pressure on the sales person and may affect the productivity of the sales man. Most often, it leads to an atmosphere of constant tension at the workplace, which is not good for sales person but it is also evident that some sales person performed excellently even in such a highly stressed environment. They enjoy the job they are doing and take every pressure as enjoyment only. While some sales person found him selves unable to handle it and think to leave
232
the organization. Some studies suggested that how a sales person is taking his job and perceived about it Research in the sales area has established a connection between how sales people view their jobs and these various outcome measures. The aim of our work was to show the sales person perception about their sales job and set out directions for the improvement of sales performance. This study discusses what the sales person thinks about their jobs. It’s necessaryforan organisation to knowabouttheir salespersonhowthey are attachedtowardstheirjobbecause salesperson aretheperson who are really creatingnewbusiness foranyorganization. Literature Review Sales Person Perception An effective sales force can play a crucial role in the success of any businessorganization. Recognizing this, many researchers have concerned themselves withunderstanding a firm's sales efforts and finding ways to improve them. Much of this workis based upon the Walker, Churchill, and Ford (1975) and the Churchill, Ford, andWalker (1976) models of salesperson job outcomes. Top-quality sales staff who maximize revenues from existing customers and systematically identify, convert, and manage new prospects well will allow a business to grow faster than its competitors (Futrell, 2006). Good salespersons may offer substantial performance improvements in today’s business environments (Baldauf and Cravens, 2002). Job Characteristics Hackman and Oldham defines “the four job related characteristics of a sales person consists of feedback, autonomy, task significance and skill variety (1975) to significantly influence job related outcomes such as workperformance, jobsatisfaction, commitment and role ambiguity. Brown and Peterson (1993) reported that greater amounts of feedback, variety, autonomy, and other positive job characteristics areassociated with greater job satisfaction.
Job commitment
In general commitment is a measure of the sales person/employee intention to stay with his/her present employer (Hunt, Chonko, and Wood 1985). Kuo et al. (2010) argued the employee commitment and loyalty toward organization are significantly affected due to job characteristics like work redesign and employee self governed.
233
Whereas, satisfaction and commitment focus on employees attitudes toward theirjob and organization, turnover refers to actual movement across the membershipboundary of an organization (Price, 1997). Commitment is expected to lead to lower turnover and, thus, to higher organizational performance (mowday, steers, and porter 1979).
Sales skill
Sales skills is described as the degree to which a job requires a variety of different activities in carrying out the work which involve the use of number of different skills and talents of employee (hackman and Oldham 1975). Empirical studies suggest that sales skills are one of the best predictor of the job satisfaction (becherermorgan, and Richard 1982; glission and durick 1988) and job commitment is greater among those who possess a variety of job skills (hunt, chonko andwood 1985). Such efforts are particularly important in an environment where valuable customers have many more options and choices than ever before. Considering the pivotal role played by salespersons in ensuring continual sales; hiring and retained highly skilled sales personnel is critical (Churchill et al., 2000; Futrell, 2006).
Job autonomy
Hackman and Oldham (1975, p. 162) described autonomy as “the degree to whichthe job provides substantial freedom, independence, and discretion to the employee inscheduling the work and in determining the procedures to be used in carrying it out.” A high level of autonomy is predicted to be most strongly associated with experienced responsibility for work outcomes. A high level of feedback also provides information about the results of work activities and the efficacy of means for achieving desired end goals. As such, feedback provision clarifies the means-end connections (Champoux, 1991; Ilgen& Hollenbeck,1991), Several empirical studies have found autonomy to be significantly related to commitment (Agarwal & Ramaswami, 1993; Hunt, Chonko, & Wood 1985), performance (Hackman & Oldham, 1975); and jobsatisfaction (Becherer, Morgan, & Richard 1982). Job Outcomes In general, task variety, autonomy, and feedback generally emerge as the most robust correlates of work outcomes in a Western context (e.g., Keller and Holland, 1981; Mowday, Stone, and Porter, 1979; O’Brien, 1982; O’Reilly, Parlette and Bloom, 1980). In their reviews of the sales management literature, Churchill et al. (1985) conclude that little variance in salesperson job outcomes has been explained. As a result, both state
234
that future research should consider additionalvariables and theoretical approaches that may contribute to a better understanding ofsales person job outcome.
Job Satisfaction
Job satisfactions refer to internalevaluations of the favorability of one’s job.Sales person satisfaction is one of the most widely study constructs in sales force research (brown and Peterson1993).The interest in sales force satisfactionreflect the increasingly humanistic orientation of modern management (bagozzi1978) in theirmeta analysisof the antecedents and consequences of jobs satisfaction..sales person satisfaction was depicted as the sales personstatementof satisfaction with various aspects of his job. It was found that job satisfaction is adversely affectedby factors such as lack of promotion, working conditions, low job security and low level of autonomy (Guest, 2004).
Job Performance
Performance is defined as a function of individual ability and skill and effort in a given situation (Porter and Lawler,1974). Churchill et. al. (1985) argue that the skills possessed by the sales person should have a positive influence on that sales person performance on variety of task; that is more skill a sales person has the better performance. Self efficacy Self-efficacy is not an intention to behave or an intention to attain a particular goal. An intention is what I say I will probably do; and research has shown that intentions are influenced by a number of factors, including, but not limited to, efficacy beliefs (Maddux, 1999a). The basic premise of self-efficacy theory is that “people’s beliefs in their capabilities to produce desired effects by their own actions” (Bandura, 1997, p. vii) are the most important determinants of the behaviors people choose to engage in and how much they persevere in their efforts in the face of obstacles and challenges. Self-efficacy is not a personality trait. Self-efficacy is defined and measured not as a trait but as beliefs about the ability to coordinate skills and abilities to attain desired goals in particular domains and circumstances. Relationship between variables Churchill et. al. (1985) argue that the skills possessed by the sales person should have a positive influence on that sales person performance on variety of task; that is more skill
235
a sales person has the better performance. Empirical studies suggests that sales skills is one of the best predictor of the job satisfaction (becherer, morgan, and Richard 1982; glission and durick 1988) and job commitment is greater among those who possess a variety of job skills (hunt, chonko andwood 1985). Thomas, Buboltz, and Winkelspecht (2004) reported significant positive relationship between skill variety, autonomy, and feedback and job satisfaction. Another study conducted by Adler (1991) found that systems in which employeesreported higher perceptions of skill variety, task significance, autonomy, and feedbackreported higher levels of satisfaction and internal work motivation. Loher, Noe, Moeller, and Fitzgerald (1985) found significant relationship between job characteristics and jobsatisfaction. The model assumes that jobs can bedescribed in terms of a set of predetermined objective attributes, dimensions, orcharacteristics. Also, the theory presumes that the high level of those dimensions of jobslead to high levels of satisfaction, motivation, and performance, and to low levels ofabsenteeism, and turnover among employees (Ferris &Glimore, 1984; Griffin, Bateman, Wayne & Head, 1987). Objectives of the Study
To restandardizethe measures for the evaluation of salesperson perception of job characteristics as job autonomy, sales skill, job commitment. To restandardize the measures for the evaluation of salesperson perception of job outcomes as job performance, job satisfaction, self efficacy. To identify the difference in job characteristics and job outcomes on the basis of gender. To evaluate the cause and effect relationship between salesperson perception of jobcharacteristics and salesperson perception of job outcomes. To explore the new vistas for further research.
Research Methodology The study was causal in nature with survey method being used to complete the study. The population included all the sales employees of automobile Industry in Gwalior Region.Individual employees were the sampling element. Non – Probability Purposive sampling technique were used to select the sample. The total sample size was 150 Respondents. Standardized questionnaires were used to evaluate the variables for this study. Data were collected on a likert type scale, where 1 stands for minimum agreement and 5 stands for maximum agreement. For the data analysis; Reliability Test, T – Testand Regression Test were used. Results and Discussion
236
Reliability Measure Cronbach’s alpha method has been applied to calculate reliability of all items in the questionnaires. Reliability test using SPSS software and the reliability test measures are given below: Table 1: Showing Cronbach's Alpha Reliability Statistics for Sales person perception of Job characteristics (Reliability Statistics) Variables Job autonomy Sales skills Job Commitment
Cronbach's Alpha .722 .775 .710
No. of Items 4 10 4
It is considered that the reliability value more than 0.7 is good and it can be seen that in statistics, reliability value is quite higher than the standard value, so all the items in questionnaires were highly reliable. Table 2: Showing Cronbach's Alpha Reliability Statistics for Sales person perception of Job outcomes (Reliability Statistics) Variables Job satisfaction Sales performance Self efficacy
Cronbach's Alpha .705 .718 .724
No. of Items 4 3 3
T –Test Analysis Null Hypothesis: Ho: There is no significant difference between Male & Female perception about Job Characteristics and Job Outcome. Table 3: Showing T-Test result of Job characteristics and Job Outcomes Independent samples test
JOB_CHAR
Levene's Test T Test for for Equality of equality of Variances means F Sig. T variances 6.662 .011 -1.821
Equal assumed Equal variances not assumed JOB_OUTCOME Equal variances assumed Equal variances not assumed
.222
237
.638
Sig. (2tailed) Df 148
.071
-1.805
136.319
.073
.056
148
.955
.056
145.185
.955
In the above table it is clear that F value of gender is not significant at .073 level of significance for the sales perception of job characteristics and also it is not significant at .955 level of significance for the sales perception of job outcomes, it means that different gender groups have no difference in the perception of job characteristics and job outcomes therefore hypothesis is not rejected Multi Linear Regression The multi linear regression test was conducted between the variable of sales person perception of Job characteristics and the variable of sales person perception of job outcomes to find out the relationship. Regression was calculated by taking dependent and independent variable in to the SPSS. The multi linear was first applied to find out the effect of job autonomy, sales skill, job commitment on job satisfaction. T value was not significant at 0.260 levels. It means variablesof sales person perception of job characteristics are not having any impact on job satisfaction. Table 4: Multi linearTest results between Sales person perception of Job characteristics and Job Outcomes Independent Variable
Dependent Variable
Adjusted R Square Value 0.070
Significance Level 0.260
Job Autonomy Sales Skill Job Commitment Job Autonomy Sales Skill Job Commitment Job Autonomy Sales Skill Job Commitment
Job Satisfaction
Sales Performance
0.116
0.000
Self Efficacy
0.774
0.000
T- Value -1.204 0.054 1.523 -4.072 1.656 1.687 22.544 -0.516 -0.296
The multi linear was then applied to find out the effect of job autonomy, sales skill, job commitment on sales performance. T value was found to be significant at 0.000 level. It means that there is a relationship between variables of sales person perception of job characteristic and sales performance. The multi linear was then applied to find out the effect of job autonomy, sales skill, job commitment on self efficacy. T value of was significant at .000 level of significance, it means that there is a relationship between variables of sales person perception of job characteristic and self efficacy. It is so because the job characteristics quickly affect the sales performance and self-efficacy, while this affects the job satisfaction in a longer duration.
238
Conclusion The research is conducted on employees of automobile sector to find the perception of sales people about their job characteristics and job outcomes. Management needs to understand better how they view their roles and their jobs. So organizations must have a deeper look on the job characteristics of their employee so as to increase their job outcomes. This research shows that the Job characteristics of employees having positive relationship with their job outcomes. It means higher the Job characteristics, higher the job outcomes which are supported by many previous researches mentioned in the review of literature. The variable which contribute most to the job characteristics are Job Autonomy, Sales Skill, Job Commitment and the variable which contribute to the job outcomes are Job Satisfaction, Sales Performance, Self Efficacy. References Adler, N.J. (1991), International dimensions of organizational behaviour (2nd ed.). Boston, MA: PWS-Kent. Agarwal, S. and S. N. Ramaswami (1993), Affective Organizational Commitment of Salespeople: An Expanded Model, Journal of Personal Selling and Sales Management, 13 (Spring), 49-70. Bagozzi, R. P. (1978), Sales force Performance andSatisfaction as a Function of Individual Difference, Interpersonal, and Situational Factors, Journal ofMarketing Research, 15 (November), 517-531 Baldauf, A. and Cravens, D.W. (2002), The Effect of Moderators on the Salesperson Behavior Performance and Salesperson Outcome Performance and Sales Organization Effectiveness Relationship, European Journal of Marketing, 36(11/12), 1367-1388 Becherer, R. C., F. W. Morgan, and L. M. Richard (1982), The Job Characteristics of industrial Salespersons: Relationship to Motivation and Satisfaction, Journal of Marketing, 46 (Fall), 125-135. Brown, S.P., & Peterson, R.A. (1993), Antecedents and consequences of salesperson job satisfaction: A meta-analysis and assessment of causal effects, Journal ofMarketing Research, 30: 63-77. Brown, S.P., & Peterson, R.A. (1993), Antecedents and consequences of salesperson job satisfaction: metaanalysis and assessment of causal effects, Journal of Marketing Research, 30, (1), 63-77 Champoux, J. E. (1991), A multivariate test of the job characteristics theory of work motivation. Journal of Organizational Behavior, 12(5): 431-446. Churchill, G.A., Ford, N.M., Johnson, M.W. and Walker, Jr. O.C. (2000), Sales Force Management (6th ed.). Singapore: McGraw-Hill Co. Churchill, Gilbert A., Neil M. Ford, and Orville C. Walker (1976), Organizational Climate and Job Satisfaction in the Salesforce, Journal of Marketing Research, 13, 323-332. Evans, Kenneth R.; Schlacter, John L.; Schultz, Roberta J.; Gremler, Dwayne D.; Pass, Michael; Wolfe, William G. (2002), Journal of Marketing Theory & Practice; Fall2002, Vol. 10 Issue 4, p30 Ferris, G. R., & Gilmore, D. C. (1984), The moderating role of work context in job design research: A test of competing models. Academy of Management Journal, 27, 885- 892.
239
Futrell, C.M. (2006), Fundamental of Selling: Customer for Life Through Services (9th Ed.). McGraw-Hill Irwin: New York Glission, C. and M. Durick (1988), Preclictors of JobSatisfaction and Organizational Commitment in Human Service Organizations, AdministrativeScience Quarterly, 33 (March}, 6l-81. Griffin, R. W., Ba teman, T. S., Wayne, S. J., & Head, T. C. (1987), Objective and social factors as determinant soft ask perceptions and responses: An integrated perspective and empirical investigation. Academy of Management Journal, 30, 501-523 Guest DE (2004), Flexible employment contracts, the psychological contract and employee outcomes, an analysis and review of the evidence, Int. J. Manage. Rev., 5/6 (1): 1-19. Hackman, J.R., & Oldham, G.R. 1975, Development of the Job Diagnostic Survey, Journal of Applied Psychology, 60: 159-170. Hunt Shelby D., Chonko Lawrence B. and Wood Van R. (1985), Organizational Commitment and Marketing.Journal of Marketing, Published by: American Marketing Association, Vol. 49, No. 1 (Winter, 1985), pp. 112-126 Ilgen, D., & Hollenbeck, J. R. (1991), The structure of work: Job design and roles. In M.D. Dunnette, & L. M. Hough (Eds.), Handbook of industrial and organizationalpsychology, 2: 165-207, Palo Alto, CA: Consulting Psychologists Press. Keller, R. T., & Holland, W. E. (1981), Job change: A naturally occurring field experiment. Human Relations, 31: 703-725. Kuo TH, Ho L, Lin C, Kai KK (2010), Employee empowerment in a technology advanced work Environment. Ind. Manage. Data Sys., 110(1): 24-42. Loher, B.T., Noe, R.A., Moeller, N.L., & Fitzgerald, M.P. (1985), A meta-analysis of the relation of job characteristics to job satisfaction, Journal of Applied Psychology, 70(2): 280-289. Maddux, J. E. (1999), Expectancies and the social-cognitive perspective: Basic principles, processes, and variables. In I. Kirsch (Ed.), How expectancies shape behavior (pp. 17-40). Washington, DC: American Psychological Association. Mowday, R. T., Steers, R. M., &Porter, L. W. (1979), The measurement of organizational commitment, Journal of Vocational Behavior, 14, 224-247. Mowday, R.T., Stone, E.F., and Porter, L.W. (1979), The interaction of personality and job scope in predicting turnover, Journal of Vocational Behavior, 15, 78-89. O’Brien, B. E. (1982), The relative contribution of perceived skill-utilization and other perceived job attributes to the prediction of job satisfaction: A cross-validation study. Human Relations, 35: 219-237. O’Reilly, C. A., Parlette, G. N., & Bloom, J. R. (1980), Perceptual measures of task characteristics: The biasing effects of differing frames of reference and job attitudes, Academy of Management Journal, 23: 118131. Porter, L. W. and Lawler, E. E. (1974), The Effect of Performance on Job Satisfaction, In Edwin A. Fleishman (ed) Studies in Personal and Industrial Psychology. Third Edition, Illinois.
240
Price, J.L. (1997), Handbook of organizational measurement. Bradford, UK: MCB University Press Rotter, J. B. (1966), Generalized expectancies for internal versus external control of reinforcement, Psychological Monographs, 80 (1, Whole No. 609). Thomas, A., Buboltz, W. C., &Winkelspecht, C. S. (2004). Job characteristics and personality as predictors of job satisfaction. Organizational Analysis, 12, 205-219 Walker, O. C., G. A. Churchil, jr., & N.M. Ford (1975). Organizational determinants of the industrial salesman’s role conflict and ambiguity. Journal of Marketing, 39 (January), 32-39.
241
IMPACT OF VISUAL MERCHANDISING ON COLLEGE STUDENTS’ IMPULSE BUYING BEHAVIORWITH REFERENCE TO APPARELS Dr. Richa Banerjee, Priyanka Kushwah
Abstract The textile/ apparel industry is growing rapidly in recent years. Increasing competition in the apparel competition the retailers are devoting effort to increase their sales by various methods. The purchase of apparels involves impulsive buying behaviors, hence the retailers are trying to stimulate impulse buying behavior by various methods like display and promotions. This research has tried to explore the relationships between visual merchandising and impulse buying behaviors of college students with reference to apparels. The results found that impulse buying of positively associated with various forms of visual merchandising like window display, form display, floor merchandising and promotional signage. Key words: Visual Merchandising, Impulse Buying, Apparels Gone are the days when shopping was an event, when people used to wait for some important occasion or festivals for purchasing or shopping. Now a day’s shopping is done without any planning, such shopping or buying of any goods or services is called impulse buying. Impulse buying behavior is a sudden buyingbehaviourwithout searching or evaluating the available alternatives (Bayley and Nancarrow, 1998). Rook (1987) defined impulse purchase as follows: ‘Impulse buying occurs when a consumer experiences a sudden, often powerful and persistent urge to buy something immediately. The impulse to buy is hedonically complex and may stimulate emotional conflict. Also, impulse buying is prone to occur with diminished regard for its consequences. Beatty & Ferrell (1998) have defined it as: ‘Impulse buying is a sudden and immediate purchase with no pre-shopping intentions either to buy the specific product category or to fulfill a specific buying task. The behavior occurs after experiencing an urge to buy and it tends to be spontaneous and without a lot of reflections.’ Stern (1962) first identified four types of impulse purchase according to the buying situation that is pure impulse buying (emotional and beyond normal buying patterns), Reminder Impulse Buying (A purchase stimulated by consumers’ memories about previous experience with or knowledge of product). Suggestion Impulse Buying – (when shopper visualize need of product after seeing it). Planned Impulse Buying - A
242
purchase occurs when a shopper enters the store with specific purpose, but the purchase decisions are depending on store situations. The importance of store environment in enhancing the shopping experiences of consumer is a well researched topic and has been studied by many researches. The design of store can enhance positive feeling or shopping mood of the shopper or it can also mar the mood to shop at all. Retailers are known to design store environments in a manner that will enhance consumers’ positive feelings, under the assumption that this will lead to desired consumer behaviors, such as a higher willingness to purchase or stay in the store for longer (YingjiaoXu, 2007). In order to enhance store atmosphere and attract customers; retailers use and implement different techniques such as visual merchandising. These techniques allow retailers to differentiate their offerings from competitors (hubrechts and kokturk, 2012) Diamond & Diamond (2003) emphasize on the purpose of visual merchandising and emphasized that visual merchandising can be defined as the presentation of a store and its merchandize in ways that aim to attract the attention of potential customers and motivate them to make purchases. Literature review Impulsive buying is an irrational behavior and it results into substantial sale of product categories (rook and fisher 1995) and many internal and external factors triggers impulse purchase. Store environment is one of the external cues in selecting store for shopping. Kotler (1973) stated that store atmosphere is more influential than the product itself in the purchase decision “In-store browsing is the in-store examination of a retailer’s merchandise for recreational and informational purposes without an immediate intent to buy” (Bloch, Ridgway, & Sharrell, 1989). Baker, et al (2002) stated that multiple environmental cues within the design, social and ambience clusters of atmosphere, and was found to impact customer perceptions of quality and time, and subsequently effects on purchase behavior. The store stimuli serve as a type of information aid forthose who go to the store without any predetermination of what they need or buy (kimjiyeon 2003). Donovan et al (1994) found that the emotional states of a consumer induced by store environments (e.g., pleasure and arousal) appear to be a strong reason why consumers spend extra time in certain stores, and spend more money than initially intended. Bitner (1992) suggested that the physical environment of the store may elicit cognitive, emotional, and physiological responses which will influence consumers’ approach or avoidance means whether the consumer will stay in store for longer duration or 243
spending more money, purchasing more merchandise. The physical surroundings that influence buying behavior are observable features that include location of the store, merchandise display, store interior/exterior design, and noise level of the store. The social surroundings of a situation are other people, their characteristics and roles, and the way they interact (Jiyeon Kim, 2003) Store environment (music, light, employee, and layout) and two individual characteristics (shopping enjoyment tendency (SET) and impulse buying tendency (IBT)) influence impulse buying behavior through positive and negative affect, and urge to buy impulsivelyauthors found that store environment drove impulse buying (IB) through positive affect and urge. (Geetamohan et.al, 2013) The more consumers use the in-store stimuli, such as interesting form/mannequin display, as aninformation aid, the more likely the possibility of a desire or need arising creatingimpulse buying (Han, 1987; Han et al, 1991). Window display, form/ mannequin display, floor merchandising and promotional signage are being significantly related with college students’ impulse buying behavior but influence is made more by form/ mannequin display and promotional signage (kimjiyeon 2003). The result of the study by hubrechts and kokturk (2012) shows that there is a directional relationship between young customers’ impulse buying tendency and two visual merchandising techniques: instore product display and product shelf presentation. Visual stimulus encountered accidentally by the shopper can generally be the product itself (Liang and Meng, 2008) or promotional signage (Piron, 1991). Rook and Hoch (1985) suggest that consumer impulse buying is driven by the environmental stimulus and is followed by an unexpected urge to obtain it. Kalla and arora (2011) suggested that position of product or encounter with product is a very strong trigger for impulse buying. They also suggested that visual stimulus, shopping format, self-service, store environment, discounts, display, shelf space, ambient factors are some of the external factors which can influence consumer impulse purchasing behavior. Rostocks (2003) states that one of the main reasons, which urge people to buy, is “looked good on shelf” i.e. visual merchandising, which has significant impact on impulse buying. Mattila and Wirtz (2008) suggest that achieving to stimulate the store environment increases the likelihood of impulse buying because it leads to a momentary loss of self-control. It was found by Bhatti and Latif that window display, forum display, floor merchandising and shop brand name (independent variables) are significantly associated to consumer impulse buying behavior (dependent variable). Hence, forum display is negatively related to consumer impulse buying and window display; however, floor merchandising and shop brand name are positively related to consumer impulse buying behavior (Bhatti and latif, 2014) Objectives
244
1. To re standardize a questionnaire on visual merchandising and impulse buying. 2. To identify the impact of visual merchandising (window display, form/ menaquinn display, floor merchandising, promotional signage) on impulse buying. 3. To open new areas for future research. Research Methodology The study was causal in nature with survey method being used as for data collection. The population included respondents from Gwalior region and individual respondents were taken as the sampling element. The sample was identified using non probability judgmental sampling technique and data was collected from 100 respondents. Data was collected through standardized questionnaires visual merchandising (window display, form/ mannequin display, floor merchandising, promotional signage) and impulse buying (kimjiyeon 2003) on a Likert type scale of 1 to 5 where 1 indicated minimum agreement and 5 indicated maximum agreement. Cronbach Alpha Reliability test on PASW 18 was used to check the reliability of the questionnaire and regression analysis was used to find out the impact of window display, form/ mannequin display, floor merchandising and promotional signage on impulse buying. Reliability analysis Reliability of all measures is calculated using cronbach’s alpha Table 1 Variable Impulse buying Window display Form display Floor merchandising Promotional signage
Cronbach alpha value 0.626 0.733 0.674 0.771 0.765
No of item 4 3 4 3 3
If the computed reliability of a measure is greater than 0.5 the measure is considered reliable. The impulse buying, window display, form/ mannequin display, floor merchandising and promotional signage reliability as indicated by Cronbach’s alpha coefficient in the table above is 0.626, 0.733 ,0.674,0.771 and .765 hence the measures used for collecting data on impulse buying, window display, form/ mannequin display, floor merchandising and promotional signage were highly reliable. Regression analysis Linear regression was applied between impulse buying, window display, form display, floor merchandising and promotional signage. Impulse buying was taken as dependent
245
variable and and window display, form display, floor merchandising and promotional signage as independent variable. The above table is showing statistics of different test applied between dependent and independent variable and The R square value is 0.380, 0.178, 0.225 and 0.211 between impulse buying as dependent variable and window display, form display, floor merchandising and promotional signage as independent variable r square valueindicates 38.0%, 17.%8, 22.%5 and 21.1% that the of variance in dependent variable (impulse buying ) can be explained with the help of independent variable window display, form display, floor merchandising and promotional signage Table 2 Independent variable
R Square value
F value
Window display Form display Floor merchandising Promotional signage
0.380 0.178 0.225 0.211
47.750 16.890 26.664 20.889
Significance level 0.000 0.000 0.000 0.000
The F value of all the variables (47.750, 16.890, 26.664 and 20.889) is significant at significance level 0.000 which predicts model is fit between dependent and independent variable. As per the impact of window display, form display, floor merchandising and promotional signage on impulse buying; four null hypotheses were constructed Table 3 Hypothesis
Beta T value Significance Conclusion value level H01 there is no impact of window 0.616 6.910 0.000 there is significant impact of window display on impulse buying display on impulse buying behaviour of behaviour of consumer consumer H02: there is no impact of form 0.422 4.110 0.000 H02: there is significant impact of form display on impulse buying display on impulse buying behaviour of behaviour of consumer consumer H03: there is no impact of floor 0.505 5.164 0.000 H03: there is significant impact of floor merchandising on impulse buying merchandising on impulse buying behaviour of consumer behaviour of consumer H04: there is no impact of 0.460 4.570 0.000 H04: there is significant impact of promotional signage on impulse promotional signage on impulse buying buying behaviour of consumer behaviour of consumer
Conclusion
246
In this study, we tried to explain the impact of various types of visual merchandising on college students’ impulse buying behavior and it is important finding of this study was that visual merchandising practices certainly have positive impact on college students’ impulse buying behavior. The results proved that there were significant causal relationships between college students’ impulse buying behavior and in-store form/mannequin display promotional signage, the window display and floor merchandising. It can be suggested from the results that all four types of visual merchandising (i.e., window display, in-store form/mannequin display, floor merchandising, and promotional signage) are significantly interrelated and that relationship generates the influences on consumers’ impulse buying behavior. References Bhatti, K. L., & Latif, S. (2014), The Impact of Visual Merchandising on Consumer Impulse Buying Behavior, Eurasian Journal of Business and Management, 2(1), 24-35. Bayley, G., & Nancarrow, C. (1998), Impulse purchasing: a qualitative exploration of the phenomenon, Qualitative Market Research: An International Journal, 1(2), 99-114. Rook, D. W. (1987), The buying impulse, Journal of consumer research, 189-199. Beatty & Beatty, S. E., & Ferrell, M. E. (1998), Impulse buying: modeling its precursors, Journal of retailing, 74(2), 169-191.Stern 1962 Yingiao Yu, (2007), Impact of store environment on Adult Generation Y consumers; Impulse buying, Journal of Shopping Centre Research, ,14, pp. 39-56. Rook, D. W., & Fisher, R. J. (1995), Normative influences on impulsive buying behavior, Journal of consumer research, 305-313.kotler 1973 Bloch, P. H., Ridgway, N. M., &Sherrell, D. L. (1989), Extending the concept of shopping: An investigation of browsing activity, Journal of the Academy of Marketing Science, 17(1), 13-21. Baker, J., A. Parasuraman, D. Grewal, and G.B. Voss, (2002), The Influence of Multiple Store Environment Cues on Perceived Merchandise Value and Patronage Intentions, Journal of Marketing, 66 (2), 120-141. Jiyeon Kim, (2003), College Students’ Apparel Impulse Buying Behaviors in Relation to Visual Merchandising, pp 45-49. Donovan, R.J., J.R. Rossiter, G. Marcoolyn, and A. Nesdale (1994), Store Atmosphere and Purchasing Behavior, Journal of Retailing, 70 (3), 283-294. Bitner, M. (1992), Servicescapes: The Impact of Physical Surroundings on Customers and Employees, Journal of Marketing, 56 (2), 57-71. JIYEON KIM, 2003 Mohan, Geeta., Sivakumaran, B., & Sharma, P. (2013), Impact of store environment on impulse buying behavior, European Journal of Marketing,47(10), 1711-1732
247
Han, Y. K., Morgan, G. A., Kotsiopulos, A., & Kang-Park, J. (1991), Impulse buying behavior of apparel purchasers, Clothing and Textiles Research Journal, 9(3), 15-21. Guo, L. and Meng, X. (2008), Consumer knowledge and its consequences: an international comparison, International Journal of Consumer Studies, 32(3), 260-268. Piron, F. (1991), Defining impulse purchasing, Advances in Consumer Research, 18, pp. 509-514. Rook, D., & Hoch, S. (1985), Consuming Impulses. In Morris Holbrook & Elizabeth Hirschman (Eds), Advances in Consumer Research, 12, pp. 23-27. Rostocks, L. (2003), Tapping into the shopper impulse. Canadian Grocer, 117 (8). Mattila, A. S., &Wirtz, J. (2008), The role of store environmental stimulation and social factors on impulse purchasing, Journal of Services Marketing,22(7), 562-567. Bhatti and latif, 2014, The Impact of Visual Merchandising on Consumer Impulse Buying Behavior, Eurasian Journal of Business and Management, Volume (Year): 2 (2014) Issue(Month): 1Pages: 24-35
248
A STUDY TO UNDERSTAND THE FACTORS INFLUENCING CUSTOMER CHOICE OF ORGANIZED RETAIL STORE Dr. Rohit Singh Tomar Dr. Tripti Tripathi Abstract Customers’ choice for an organized retail store depends up on selected factors like – Quality of Merchandise, Product Assortments, Discounts and Offers, Physical Facilities and Store Image. During our study we find most important factor influencing customer choice of organized retail store which comes out to be store brand image. Later we developed an assumption that quality of merchandise and store brand image are strongly associated. Strong store brand image removes doubt regarding the quality of merchandise. We applied Wilcoxon-Wilcox test to find significant difference among the selected factors in influencing preference of an organized retail store. Further we used inferential statistics to generalize our assumptions. Keywords – Organized Retailing, Quality of Merchandise, Store Brand Image.
Introduction Retailing is converging from what was unorganized to what is organized. Retailing space in organized retailing is ever expanding and some of the super markets or hyper markets of metros are equal to the local market of the small cities. More refined chain of shopping malls is extending to facilitate each and every segment of the customers. Presence of many customers under roof gives sellers a chance to gain a common sharing of interest and target their product by displaying it freely. Therefore, study of retailing demands more scientific and analytical temper than ever. Consumer behavior in retailing practices is difficult to diagnose. Various cognitive, conative and affective components are responsible to build the attitude of a customer towards any organized retail store. Cognation based models opens the gate for the rational and irrational aspects of consumer Behavior. Therefore, utilitarian and hedonic approaches reflect the importance of shopping experience to the customers and argue that the outcome of the customer behavior should be delivering value to the customer (Yogesh & ShivKumar, 2008). The only reason for the customers to be in the market place is that they are looking for something of value (Mittal & Sheth, 2001). Value is considered to be the basic currency (Mittal & Sheth, 2001) and the output of consumption experience (Holbrook, 1986). Existing research supports this idea, indicating that consumers are motivated to go shopping for different reasons other than pure product acquisition (Buttle, 1992; Buttle & Coates, 1984; Tauber, 1972; Westbrook & Black, 1985). Assumptions are made by the researchers regarding probable factors 249
which are responsible for consumers’ preference to organized retailing. These assumptions are made on the basis of the literature review and general intelligence of the researchers. These factors are Brand/Store image, Quality of merchandise, Discounts and Special offers, Merchandise Assortment and physical facilities. Review of Literature Store image has been identified as an important determinant of consumer store preference (Clarkson et al., 1996; Wakefield and Baker, 1998; Erdem et al., 1999; Hernandez & Bennison, 2000). Research supports the influence of image on consumers’ choice of a shopping destination and its inclusion in a consideration set (Finn and Louvier, 1996; Korgaonkar et al., 1985; Roy, 1994; Sit et al. 2003; Steenkemp and Wedel, 1991). Finn and Louvier (1996) offer evidence that image of a shopping center influences its inclusion in consumers’ consideration sets and its choice. While a number of studies have examined shopping center image (Howell and Rogers, 1980; Nevin and Houston, 1980), little is known as to factors that intervene between image and shopping center visits. It is found that shopping center image influences behavior primarily through positive anticipated emotions (i.e. the self-predicted emotional consequences of achieving a sought after goal; Perugini and Bagozzi, 2001), then communications should use appeals designed to increase these emotions Image impacts the frequency of shopping center visits. Quality of merchandise is a store preference factor as well. Dick and Basu (1994), Anderson and Fornell (1994), Iacobucci et al. (1995), and Rust and Oliver (1994, p. 6, ``quality is one dimension on which satisfaction is based'') we view service quality as an antecedent to satisfaction. Low price and product assortments were found as important store choice criteria in the empirical work of Arnold et al. (1997) and Seiders & Tiger). Wide store assortments are viewed as an appealing store image attribute valued by customers (Hoch et al., 1999). Discounts and special offers are also supported by various researchers as they justified them to be the factor responsible for customer visit to organized retail outlet. Price promotions are an important tactic used to influence consumer behavior in grocery retailing both with regard to retailer and manufacturer. Various discounts and special offers are money-based, Product-based, Gift - prize or merchandise-based. Reduced price, Extra product, extra free, buy one, get one free, Coupon, Rebates are the options fall under various discounts and special heads. Physical facilities like presence of food corners, clean toilets, proper temperature inside the retail outlet, parking facilities, sales man guidance, retail space, music, appropriate color combination, Fragrance, light, children playing facilitates, events at shopping centers and other hedonic pleasure are very important factors which could not be ignored by the retailers as they promote customers visits at organized shopping centers. Objectives
250
1. To analyze and rank various factors responsible for consumer preference to organized retailing. 2. To analyze significant difference between various factors as far as customer preference towards organized retailing is concern. Research Methodology This research study is an analytic study of organized retailing in India with special reference to Gwalior region. A survey is conducted on 25 retail customers of Gwalior region. They were asked to award marks out of 25 to the six questions related to the six identified factors. All the data required for the purpose will be obtained from the primary sources but on requirement secondary data will also be referred. Data Collection Method The data collection method used to obtain the desired information from primary sources has been the direct interview and the instrument used has been a questionnaire. Questionnaire designed consist of questions on the demographic variables and the questions on the customer preference factors. Statistics used Wilcoxon—Wilcox test is applied to compare the significance of the difference in response for six treatments applied to 25 subjects. Six factors are compared by 25 consumers who assigned a score (1 to 25) to each factor affecting customer preference of organized retailing. Table – I show the Rank sums of the identified factors. Table I -Rank Sums S.No. I prefer to CPOR is due CPOR is CPOR is due CPOR is As the physical shop at the to the because of to the wide due to facilities at the branded availability of the variety of the store store are stores. quality discounts merchandise layout and appealing, so there merchandise. offered. available. design. is CPOR. 1 20 15 22 20 21 20 2 23 20 20 18 18 18 3 15 12 21 16 18 19 4 20 20 15 20 18 18 5 21 20 15 20 15 21 6 15 15 20 20 18 17 7 20 15 22 20 21 20 8 23 20 20 18 18 18 9 15 12 21 16 18 19 10 20 20 15 20 18 18 11 21 20 15 20 15 21 251
12 13 14 15 16 17 18 19 20 21 22 23 24 25 Run Sum
15 20 23 15 20 21 15 20 23 15 20 21 15 23 479
15 15 20 12 20 20 15 15 20 12 20 20 15 20 428
20 22 20 21 15 15 20 22 20 21 15 15 20 15 467
20 20 18 16 20 20 20 20 18 16 20 20 20 20 476
18 21 18 18 18 15 18 21 18 18 18 15 18 18 450
17 20 18 19 18 21 17 20 18 19 18 21 17 17 469
CPOR-Customer Preference of Organized Retailing Findings On the basis of Rank sum following ranking could be given to the factors affecting preference of organized retailing I least preferred and VI most preferred: I. Merchandise Quality II. Store Layout and Design III. Discounts and Offers IV. Physical Facilities V. Variety of Merchandise VI. Brand Image of Store On analyzing Table II of the Rank sum differences it has been found that the differences in customer preference of organized retailing is significant in - Quality of Merchandise and Discounts and Offers, Quality of Merchandise and Physical Facilities, Quality of Merchandise and Merchandise Assortment, Quality of Merchandise and Brand Image of Store. As for K=6 and N=25 and α = 0.05 Critical Value = 37.7 which is less than the rank sum differences of the above cases. Table II – Rank sum differences
Quality of merchandise Store layout and design Discount and offer Physical facilities Merchandise assortment
428 450 467 469 476
Store layout Discount and design and offer 22 39 17
252
Physical facilities 41 19 2
Merchandise assortment 48 26 9 7
Store brand image 51 29 12 10 3
It has been found that customers rated quality of merchandise as a least important factor to choose a retail store while store brand image is considered as the most important factor to choose a retail store. Therefore, two implicit assumptions have been drawn by the researcher: 1. Either customer prefers quality of merchandise least among the set of factors while choosing an organized retail store. 2. Or they believe that branded store provides quality of merchandise. Further we can assume that quality of merchandise and store brand image are strongly associated. On the basis of second assumption we can further formulate a null hypothesis that there is no significant difference between branded store providing quality of merchandise and non branded store providing quality of merchandise. Data is collected through questionnaire during personal interview of 100 respondents. And on applying Z-test we found that ZCalculated = 3.642 and Ztabulated = 1.96. Therefore, we reject the null hypothesis as ZCalculated > Ztabulated. Therefore, customers believe that branded store are providing quality of merchandise. As mean value of the preference of branded store providing quality of merchandise is greater than the mean value of the non-branded stores providing quality of merchandise. Suggestions Customers prefers organized retail store for its brand image. Further store brand image could be enhanced by providing merchandise assortment at store along with physical facilities and discounts. Customers are associating quality of merchandise with the store brand image. That means better the quality of the merchandise higher would be the store brand image. But quality of merchandise alone has been rated as a least important factor among the selected factors in influencing customer preference for a retail store. Although it has scored significantly in the survey as an individual factor as far as influencing customers’ preference for the retail store is concern. Limitations Limitations are the same as that of the Wilcoxon-Wilcox test for comparison of multiple treatments of a series of subjects (here customers). It is assumed that customer’s response to one factor is not affected by the same customer’s response to another factor. Further it is assumed that response distribution for each customer is continuous. References
253
Anderson EW, Fornell C, Lehmann DR, Customer satisfaction, market share, and profitability: findings from Sweden. J. Mark 1994; 58:53 – 66. Arnold, S. (1997), Shopping habits at Kingston department sores: wave III: three years afterWal-Mart’s entry into Canada, Report No. 3, Queen’s University School of Business, Kingston, July. Buttle, F. (1992), Shopping Motives Constructionist Perspective, The Service Industries Journal, 12(3), pp. 349-67. Buttle, F. and Coates, M. (1984), Shopping Motives, The Service Industries Journal, 4, No.1, pp. 71-82. Clarkson, R.M., Clarke-Hill, C.M. and Robinson, T. (1996), UK supermarket location assessment, International Journal of Retail & Distribution Management, 24 (6), pp. 22-3. Dick, A. and Basu, K., 1994, Customer loyalty: towards an integrated framework, Journal of the Academy of Marketing Science,22 (2), 99-113. Erdem, O., Oumlil, A.B., and Tuncalp, S. (1999), Consumer Values and the Importance of Store Attributes, International Journal of Retail and Distribution Management, 27(4), pp.137-144. Finn, A. & J.J. Louviere, J.J. (1996), Shopping center image, consideration, and choice: anchor store contribution, Journal of Business Research, 35(3), 241-251. Hernandez, T. and Bennison, D. (2000), The art and Science of Retail Location and Decisions, International Journal of Retail and Distribution Management, 28(8), pp. 357-367. Hoch, S.J., Bradlow, E.T. and Wansink, B. (1999), The Variety of Assortment, Marketing Science,18(4), 527546. Holbrook, M.B. (1986), Emotion in the Consumption Experience: Toward a New Model of Human Consumer, The Role of Affect in Consumer Behaviour: Emerging Theories and Application, ed. Robert A. Peterson et al., Lexington, MA: Heath, pp.17-52. Houston M J and Nevin J R (1980), Retail shopping area image: structure and congruency between downtown areas and shopping centers, in Monroe (1980) 677. Howell, R.D. and Rogers, J.D. (1980), Research into Shopping Mall Choice Behaviour, Monroe (1980), pp. 671-676. Iacobucci, D., Ostrom, A., and Grayson, K. (1995), Distinguishing service quality and customer satisfaction: the voice of the customer, Journal of consumer psychology, 4(3), 277-303. Kanji, Gopal K. (2011), 100 Statistical Tests (3rd Edition), Sage Publications in association with Vistaar Publications, New Delhi. Korgaonkar, P. K, Lund, D., & Pnce, B. (1985). A structural equations approach toward examination of store attitude and store patronage behavior, Journal of Retailing, 61. 39-60. Mittal, K.C., Seth, J.N. (2001), Value Space: Winning the Battle for Market Leadership, McGrraw-Hill Co., New York.
254
Perugini, M., & Bagozzi, R.P. (2001), The role of desires and anticipated emotions in goal-directed behaviours: Broadening and deepening the Theory of Planned Behaviour, British Journal of Social Psychology, 40, 79-98. Roy, Abhik (1994), Correlates of Mall Visit Frequency, Journal of Retailing, 70 (2), pp 139–161. Rust R.T., Oliver R.L. (1994), “Service Quality: Insight and Managerial Implications from the Frontier”, Service Quality: New Directions in Theory and Practice, Thousand Oaks, CA: Sage Publications, pp. 1-19. Steenkamp J.-B.E.M., Wedel M. Segmenting retail markets on store image using a consumer-based methodology. J Retail 1991; 67(Fall):300–20. Seiders, K., Simonides, C. & Tigert, D.J. (2000), The impact of supercenters on traditional food retailers in four markets, International Journal of Retail & Distribution Management, 28(4/5), 181-195. Sit, J., Merrilees, B. and Birch, D. (2003), Entertainment-seeking shopping centre patrons: the missing segments, International Journal of Retail & Distribution Management, 31(31), pp. 80-94. Tauber, E.M (1972), Why do People Shop? Journal of Marketing, 36, October Issue, pp.46 -59. Upadhyay, Y. and Singh, S.K. (2008), Measuring Consumer Perceived Value of Different Retail Formats, The Indian Journal of Commerce, Quarterly Publication of the Indian Commerce Association, 61(4), OctoberDecember Issue, pp. 49-67. Westbrook, R.A. and Black, W.C. (1985), A Motivation-based Shopper Technology, Journal of Retailing, 61(1), pp.78-103. Wakefield, K.L. and Baker, J. (1998), Excitement at the Mall: Determinants and Effects on Shopping, Journal of Retailing, fall, pp. 515-550.
255
Work-Family Conflict among Sales - Force Dr Elizabeth George Abstract As globalization has brought the world closer, the effort of sales people has become more complex. They have the responsibility to increase sales, build relationship with customers and attain customer satisfaction. So they find it difficult to handle the family and work together. The negative effect of work- family conflict has been rising in the last couple of years among the sales force and it is expected to increase in the years to come. Few among the various reasons are high paid jobs which demand more commitment, long working hours, unachievable targets, more number of dependents, more family demands etc. This paper has looked into the work-family conflict. It focuses on the consequences of work-family conflict and highlighted strategies to lessenits effect so that sales force can be more effective in performing their duty. Key words: Work-Family Conflict, Consequences, Sales- force Introduction Sales personnel are important resource of an organization. The performance of salespersonnel has a great impact on the revenue generation and position of the firm (Churchill, Ford and Walker,1974). In this highly competitive world where there are two bread winners in family it is very difficult to manage between professional life and personal/family life for sales force. They have to juggle with their job and home. The attainment of better work-family and family -work balance can result in motivated, productive and less stressed workforce who can work effectively in organizationsand can have a content family life. Hence the work- family conflict has emerged as a pivotal topic of discussion for not only academicians but also management practitioners. Work-FamilyConflict Greenhaus and Beutell (1985) has explained work-family conflict on the basis of source of conflict. They divided work-family conflict into three types of conflict: time-based, strain-based and behavior-based conflicts. Time-based conflict occurs when the time spent by the employee in one domain makes it impossible for him to spend that same time in another domain. Greenhaus and Beutell define strain-based conflict as the strain from participation in one role which makes it difficult to fulfill requirements of another. A behavior-based conflict happens when behaviors that are acceptable and appreciable in the work domain are irreconcilable with the behaviours that are desired in the home domain. Consequences of Work Family Conflict Physical and Mental Health
256
Allen et al. (2000) found out that there is a correlation between physical health and work-family conflict,Bellavia and Frone (2005) also states that work family conflict negatively affects physical and mental health.Frone et al. (1997) and Frone, Russell, and Barnes (1996) in their studies confirmed that work family conflict is related to high levels of depression, poor physical health and hypertension.Major et al. (2002) also found significant correlations between work-family conflict and somatic complaints. High level Depression is also associated with work family conflict (Major et al., 2002; Frone et al.,1997). This also leads to low physical stamina (vanSteenbergen and Ellemers, 2009). Increased emotional exhaustion was associated with increased WFC (Brotheridge and Lee, 2005; Espnes, Falkum and Aasland, 2008) Stress at work Wang (2006) asserted that work life imbalance leads to stress of employees. Work stress and imbalance between work and family lives were independently associated with mood and anxiety disorders. Bell, Rajendran& Theiler (2012) conducted a study among Australian academic teaching staff and found out that, high perceived job threat stress would increase work-life conflict and reduce work-life balance. When academics felt irritated, lacked control, felt pressured, hectic and agitated due to their work, they experienced less balance between their work and personal lives and more conflict between their personal and work lives. Mauno S. &Kinnunen U. (1999) tested a mediational model for explaining the effects of psychosocial job stressors, on marital satisfaction through job exhaustion and psychosomatic health and found that the job stressors, spilled over into marital satisfaction through the mediators. Studies like Wong and Lin (2007), Roberts (2007) etc. also indicate that job stress result in work life conflict and lead to work family imbalance. Fenwick and Tausic (2001) indicated that although nonstandard shifts did not have much effect on family life and health American workers, lack of scheduling control had a strong negative effect on them. Alcohol Abuse In a study among two community samples of employed parents, Frone et. al. (1996) found that work family conflict was positively related to heavy drinking among men and women. Geurts et al., 1999 and Frone et al., 1997 reported alcohol abuse as one of the spillover effect of work family conflict. Another study by Bromet and colleagues (1990) also testified that work family conflict was positively related to daily alcohol consumption among a sample of blue collar working women. Burnout Burnout is usually defined as a syndrome of emotional exhaustion, scepticism, and reduced professional and personal accomplishment (Maslach et al., 1996). According to Erickson et al. (2000) if employees had children under the age of six or have difficulty in handling the arrangements of child care, the high level of burnout they experience will
257
be associated with high level absenteeism. Peeters et al. (2005) found that job demand and home demand appeared to have a direct and indirect effect (through Work Home Interference and Home Work Interference respectively) on burnout specifically exhaustion and cynicism dimensions of burnout. Thus high job demands are negatively related to Work Home Interference resulting in burnout and high home demands are negatively related to Home Work Interference resulting in burnout. When compared with working US adults, physicians had more symptoms of burnout and were more dissatisfied with work-life balance (Shanafelt et al. 2012). Absenteeism There are number of studies that have shown that work-family programs result in less absenteeism and vice versa. Researchers show that employees take free time away from their job to balance the work and family. Hughes &Bozionelos (2007) confirmed that there is a relation between work-life imbalance and non-genuine sick absence. Koslowsky (2000) developed a two stage model were work life conflict was one of the reason for lateness of the employees. In a study on employed married parents by Erickson et al. (2000) family demands were found to be associated with higher absence frequency. Employee Turnover Even though there are various family friendly policies, employees tend to leave the organization when they are not able to attain a balance between work and family. As per the study in 1998 byAbbott et al. the total costs (direct and indirect cost) associated with the exit (separation, replacement, and training ofnew employees) of high-performing women in managerial cadre in a large professional services business isapproximately $75 000 per employee. Johnson (1995) claimed that the tendency for employees who have work life conflict to quit the job is three times greater than the employees who have work life balance. He found that work-family programs enhanced the employee morale and employee retention rates. Grover& Crooker (1995) found that there is a relationship between different family friendly policies and turnover intention. Hughesand Bozionelos (2007) stated that there is a clear connection between problems with work-life balance and withdrawal behaviours like turnover. A study of emotional exhaustion among social welfare workers found that burnout affected job performance (as judged by managers) and was a strong predictor of turnover (Wright and Cropanzano, 1998). Thus employees having high level of burnout because of work-life imbalance may also leave the organisation. Poor Performance When employees do not have necessary time to meet their responsibilities both at home and at work, it affects their performance at work (Greenhaus, and Beutell, 1985). In a study on issues that pertain to work-life balance of male workers it was found that work-life imbalance was not the only matter of concern, but it was also the major source
258
of dissatisfaction for employees (Hughes &Bozionelos, 2007) which lead to poor performance. Keene and Reynolds (2005) stated that among married employees, family demands negatively affected the job performance of women employees than male employees. This is because of the fact that women employees made more adjustments in their workloads for the sake of their family like they refuse to do overtime work or were not willing to do assignments. A study by Meyer et al. (2001) among working mothers working in 100 Best Companies found that work-life balance practices have a positive impact on profit or performance but all the work-life balance practices do not have a positive impact on profit or performance. Thus the study shows that increasing the number of children in subsidized day care programs, job sharing etc have a negative effect on profitability where as telecommuting has a positive impact on profits. How tocope up with Work - Family Conflict Research has shown that there are several strategies to handle the work family conflict. The studies have proved that a supportive workplace culture reduces work-family conflict (Galinsky et al. 1996; Mennino et al, 2005). Researcherslike Smith and Gardner (2007); Galinsky and Stein (1990); Doherty (2004); Ferber, O’Farrell, and Allen (1991) had suggested the strategies like job sharing, flexi work timing telecommuting, childcare benefits,referral services for child or elder care, cash subsidies, etc. for handling negative the situation leading to work family conflict of workforce. Conclusion Sales force is the lifeblood of an organization. Soorganizations should take serious efforts to strike a balance between work and life of sale personnel, when they strive hard to take the organization to new heights. The existence of an organization depends on their sales force who are effective and efficient. The organization can attain high performance by reducing the conflict between the work life and family life of their employees. The techniques like job sharing, flexi work timing, family friendly work culture, cash subsidies, telecommuting etc. can be adopted by the organization thus reducing the conflict between work and family, which is instrumental in achieving healthy work and family balance. Reference Adams, G.A.&Jex, S.M. (1999), Relationships between time management, control, work-family conflict, and strain, Journal of Occupational Health Psychology, 4, 72-77. Allen, T. D., Herst, D. E., Bruck, C. S., & Sutton, M. (2000), Consequences associated with work-tofamilyconflict: A review and agenda for future research, Journal of Occupational Health Psychology, 5(2), 278-308.
259
Bell, Rajendran& Theiler (2012), Job stress, wellbeing and work-life balance of academics, Electronic Journal of Applied Psychology, 8(1), 25-37. Bellavia, G. M. &Frone, M. R. (2005), Work-family conflict. In J. Barling, E. K. Kelloway, & M. R. Frone (Eds.), Handbook of work stress (pp. 113-147), London: Sage. Bromet, E.J.; Dew, M.A.; & Parkinson, D.K. (1990), Spillover between work and family: A study of bluecollar working women, In: Eckenrode, J., and Gore, S., eds. Stress Between Work and Family, New York: Plenum Press, pp. 133–151. Brotheridge, C. M., & Lee, R. T. (2005), Impact of work-family interference on general well-being: A replication and extension, International Journal of Stress Management, 12,203-221. Brummelhuis, L. L. T., Lippe, T. V. D., Kluwer, E. S., & Flap, H. (2008), Positive and negative effects of family involvement on work-related burnout, Journal of Vocational Behavior, 73, 387–396. Churchill GA Jr.., Ford NM, Walker OC Jr. (1974), Measuring the Job Satisfaction ofIndustrial Salesmen, Journal of Marketing Research, 11, 254-60. Crouter, AC (1984), ‘Spillover from family to work: the neglected side of the work-family interface’, HumanRelations, vol.37, no.6, pp.425-442. Doherty, L. (2004), Work – life balance initiatives: Implications for women, Employee Relations 26 (4): 433 – 452. Duxbury, Linda and Christopher Higgins, (1994), Interference between Employment and Family: AStatus Report on Dual-Career and Dual-Earner Mothers and Fathers, Employee Assistance Erickson, R. J., Nichols, L., & Ritter, C. (2000), Family influences on absenteeism: Testing an expanded process model, Journal of Vocational Behavior, 57, 246-272. Fenwick R. and Tausig M. (2001), Scheduling Stress -Family and Health Outcomes of Shift Work and Schedule Control, American Behavioral Scientist, 44(7),1179-1198. Ferber, Marianne A., Brigid O’Farrell, and La Rue Allen. 1991, Work and Family: Policies for a Changing Work Force, Washington, DC: National Academy Press. Frone, M. R., Russell, M., & Cooper, M. L. (1997), Relation of work-family conflict to health outcomes: Afour-year longitudinal study of employed parents, Journal of Occupational and Organizational Psychology,70(4), 325-335. Frone, Michael R., Marcia Russell, and Lynne M. Cooper. 1992, Antecedents and Outcomes of WorkFamily Conflict: Testing a Model of the Work-Family Interface, Journal of Applied Psychology 77(1): 65–78. Frone, MR, Russell M & Barnes G, M (1996), Work family conflict gender, and health-related outcomes: A study of employed parents in two community samples, Journal of Occupational Health Psychology 1:57–69, 1996. Galinsky, Ellen and Peter J. Stein. 1990, The Impact of Human Resource Policies on Employees: Balancing Work/Family Life, Journal of Family Issues 11(4): 368–83.
260
Galinsky, Ellen, James T. Bond, and Dana E. Friedman. 1996, The Role of Employers in Addressingthe Needs of Employed Parents, Journal of Social Issues 52(3): 111–36. Geurts, S., Rutte, C., &Peeters, M. (1999), Antecedents and consequences of work/home interferenceamong medical residents, Social Science & Medicine, 48(9), 1135-1148. Greenhaus, J. H., &Beutell, N. J. (1985), Sources of conflict between work and family roles, Academy of Management Review, 10, 76 – 88. Grover & Crooker (1995), Who appreciate family-responsive human resources policies: the impact of family friendly policies on the organizational attachment of parents and non-parents, Personal Psychology, 48(2), 271-288. Gutek, Barbara A., Sabrina Searle, and Lilian Klepa (1991), Rational versus Gender Role Expectationsfor Work–Family Conflict, Journal of Applied Psychology 76(4): 560–8. Hanson, G. C., Hammer, L. B., & Colton, C. L. (2006), Development and Validation of a Multidimensional Scale of Perceived Work–Family Positive Spillover, Journal of Occupational Health Psychology, 11(3), 249– 265. Hughes J.&Bozionelos N (2007), Work-life balance as source of job dissatisfaction and withdrawal attitudes-An exploratory study on the views of male workers, Personnel Review, 36(1), 145-154. Keene, J. R. & Reynolds, J. R. (2005), The job costs of family demands, Journal of Family Issues, 26, 275-299. Koslowsky, M (2000), A new perspective on employee lateness, Applied Psychology, International Review, 49(3), 390-407. Maslach, C., Jackson, S.E. and Leiter, M.P. (1996), MBI: The Maslach Burnout Inventory: Manual, Consulting Psychologists Press, Palo Alto, CA. MaunoS&Kinnunen U, (1999), The effects of job stressors on marital satisfaction in Finnish dual-earner couples, Journal of Organizational Behavior, 20(6), 879–895. Major, V. S., Klein, K. J., &Ehrhart, M. G. (2002), Work time, work interference with family, and psychological distress, Journal of Applied Psychology, 87(3), 427-43685. Meyer, C. S., Mukerjee, S., &Sestero, A. (2001), Work-family benefits: Which ones maximize profits? Journal of Managerial Issues, 13(1), 28-44. Peeters M C W, Montgomery A J, Bakker A B and Schaufeli W B (2005), Balancing Work and Home: How Job and Home Demands Are Related to Burnout, International Journal of Stress Management, 12(1), 43–61. Quarterly 9: 55–80. Roberts, K. (2007), Work – life balance – The sources of the contemporary problem and the portable outcomes, Employee Relations, 29 (4), 334 – 351. Shanafelt TD, Boone S, Tan L, Dyrbye LN, Sotile W, Satele D, West CP, Sloan J, Oreskovich MR(2012),Burnout and satisfaction with work-life balance among US physicians relative to the general US population, Arch Intern Med.8;172(18), 1377-85.
261
Small, Stephen A. and Dave Riley (1990), Toward a Multidimensional Assessment of Work Spilloverinto Family Life, Journal of Marriage and the Family 52: 51–61. Sue Falter Mennino, Beth A. Rubin& April Brayfield (2005), Home –to-job and job to home spillover: The Impact of Company Policies and Workplace Culture, The Sociological Quarterly 46, 107–135, Midwest Sociological Society vanSteenbergen, E. F., &Ellemers, N. (2009), Is managing the work–family interface worthwhile? Benefits for employee health and performance, Journal of Organizational Behavior, 30(5), 617-642. Wang J L (2006), Perceived work stress, imbalance between work and family/personal lives, and mental disorders, Social Psychiatry and Psychiatric Epidemiology, 41(7),541-548. Wright, T. A., &Bonett, D. G. (1997), The contribution of burnout to work performance. Journal of Organizational Behavior, 18, 491–499.
262
INDIA: AN ANALYSIS OF ONLINE RETAIL DURING 2008-2013 Manisha Raj, Dr. KavitaIndapurkar ABSTRACT Online retail is the most important form in which Ecommerce is growing in India.Some reports by the international surveying bodies have claimed that 60% of Indians who used internet in 2011 visited the online retailing websites. The Indian online retail industry is currently estimated about US$528 billion in 2012 (growing at the rate of 11% per annum). A major chunk of Indian retail market i.e. 90.4% is still not so well organized. Even though, the share of online retailing is increasing at the rate of 24% per annum. The online retail in India is growing day by day. The main objective of this research paper is to analyse to finest details of online retail in India during 2008-13. Particularly if we are talking about the phase of 2008-2013, this was the phase of initial emergence of all sorts of E-commerce in India.Initially, during 2008-2010 all the goods that were sold through online retailers were of substandard quality and if they turned out to be defective there was no replacement or any kind of guaranteed refund etc. and even the products were delivered to customer after the passing off of the due date. ....but this picture was completely changed after 2010 when some of the international players jumped into this sort of Indian market.The other objective is also to find what attracted the international players of this market so much that they wanted to invest on this in Indian market and also to find out the reasons that drive online retail market in India.There is a fever of online retail in India nowadays so its increasingly important to know about its nature and features of this model of retail market. Introduction Online Retail has turned itself within 5 years from a scrap to a heap of diamonds. It has grown to such an extent that now it directly challenges the traditional brick and mortar of retail industry. Online retail means online retailers and their marketplaces that have a direct interaction with consumers much of a kind of traditional retail market. Internet retail is not something very new to India.We seeing a growth of online retail trade in the world market since 2000's but here in India near about in 2005 we see online retail seeking attention of the new generation of Entrepreneurs. In the period during 2005-2013, these last five years have so much threatened the traditional retail market that now they are also starting their own online retail portals. World scenario of online retail - According to the research of Forbesmagazinepublished
263
on march, 2013 the total revenue generated by E-commerce industry in US and European Union consists one third that is about 66%of the total revenue was generated by Online retail industry. This research also proves that not only in India but in the whole world online retail is replacing the physical stores. In western economies a situation has raised that more and more investors are willing in e-retail than investing in brick and mortar model. According to a study done by market research firm TheNielsen, almost half of the internet users use e-retail as a shopping option, according to that study due to fast paced changes in the technology and day by day increase in use of more sophisticated technology the consumer’smind-set is changing and they are more interested in shopping online. Indian e-retail scenario - According to recent survey by CRISIL, the Indian retail industry has grown very steadfastly in the past four or five years. If we look at the stats, then Indian e -retail industry's revenue in 2007-2008 was of Rs. 1500 Cr. and in 20122013 it rose to Rs.13, 900 Cr that means in five years it showed a growth of nearly 900% that means per annum growth rate of 180%. That was a kind of supernatural profit for the investors of this industry. This push in e-retail has let to decrease in addition of traditional retail outlets by major companies instead of this they also started their own shopping portal. Online retail in India exists in two dimensions that are: 1. Vertical Focused players - they deal in specific kind or we can say variety of goods like apparel etc. 2. Multi-Category players - they deal in multiple varieties of goods. According to the survey by Ernest and Young at the end of 2013 the market share of multi-category players rose to more than fifty percent as compared to vertically focused players. Multi-category players Vs Vertical-focused players Multi-category stores give wider market basket from which consumer can choose. They provide consumer with all sorts of goods that he needs to buy at one place. This feature consumer regards as the most convenient thing as he doesn't have to waste time by strolling over from one shopping portal to another. Vertical-focused player just focuses on their single product and that product is their only speciality. They provide the customer to get preferred variant of that good. Most of the vertical focused are being acquired by multi category players. Indian online retail market is composed of both Vertical Focused player and multiplayer nowadays, but during 2008-2010 there were only a few vertical focused players and a large no. of
264
multiplayer category players were emerging. This is the phase in which e-commerce saw glimpse of a new era of retail trade that can up to some extent hamper the progress of the traditional retail market. Objective The various research data included in this project is derived with the help of various journals and articles published by the data analyzing companies like ERNEST AND YOUNG and CRISIL. And the other web resources which were referred for important data are www.livemint.com www.economictimes.com , www.in.reuters.com and www.ibef.org. The books that were referred for getting all the relevant information about this research paper are The Mouse Charmers by Sam Pitroda and E-Commerce: An Indian perspective 4th edition by P.T. Joseph S.J. The growth of online retail in India is often a times said by the most of economists that it really started after 2010 as there was better availability of internet and there was also a tremendous increase in gadgets that can access internet conveniently. They consider that after these developments we saw growth in online retail. Some also say that still India is yet to grow its online trade market as its still in sapling stage. There are also some people that have a view that Indian Online retail market is based on fooling its consumer and full of fraudulent and forgeries as it was established for getting maximum profit anyhow i.e. they say that online retail trade has fraud and forgery as its foundation stones. Some also consider it as a way of QUICK MONEY. The objectives of this paper are:
To understand factors responsible for the growth of online retail between 20082013. To understand the future of online retail. To establish that online retail fully emerged as a profitable business model by 2013. To find out what gave the much needed push to Indian e-retail industry.
Literature Review CRISIL Opinion of February 2014on Indian online retail industry -"India’s online retail industry has grown at a swift pace in the last 5 years from around Rs 15 billion revenues in 2007-08 to Rs 139 billion in 2012-13, translating into a compounded annual growth rate (CAGR) of over 56 per cent. The 9-fold growth came on the back of increasing internet penetration and changing lifestyles, and was primarily driven by books, electronics and apparel. CRISIL Research expects the buoyant trend to sustain in the medium term, and estimates the market will grow at a healthy 50-55 per cent CAGR to Rs 504 billion by 2015-16. The entry of new players in niche segments such as grocery, jewelry and furniture, along with large investments by existing players in the
265
apparel and electronics verticals, will be the drivers. In terms of size, India’s online retail industry is very small compared with both organized and overall (organized + unorganized) retail in the country. This speaks volumes of its potential. We expect the industry’s revenues to more than double to around 18 per cent of organized retail by 2016 from around 8 percent in 2013. Yet, its share of the overall retail (organized + unorganized) pie will be just over 1 per cent. That compares with 9-10% in the US and UK, and around 4-5% in China." IAMAI researchshows that - " According to IAMAI, online retail clocked sales of nearly US$572 million in 2011 and accounted for 6% of overall internet commerce revenues in India (grew at a CAGR of 25% since 2007). The market is expected to witness rapid growth in years to come. While travel is the largest segment among all the internet commerce categories, internet Retail would reportedly match the travel segment, by the value of goods sold, within three to four years and, thereafter, surpass it." ERNEST AND YOUNG: Rebirth of Ecommerce in India gave us a graph representing the scenario of Indian online retail -
Source - Ernest and Young journal on Rebirth of Ecommerce in India McKinney Report on Online and Upcoming of the Internet Impacts On India-"Nascent but rapidly growing e-commerce platform -In line with private consumption’s small share of India’s GDP, ecommerce in India is at a nascent stage. Our eCP index ranks India at 43 in our sample of 57 countries across the developed and aspiring world, with significant room for improvement in online payment enablement and Internet readiness (Exhibit 4). Two of the biggest obstacles cited by e-commerce ventures in India are inadequate online payment infrastructure and logistics solutions. The average consumer in India has 0.3 financial cards, compared with the average consumer in Mexico who has one, in Brazil has four, and in the United States has seven. India has 2.6
266
cashless payments per year per capita, close to Morocco’s level of 2.1. In contrast, cashless payments per year per capita in South Africa were 26.8. The credit rating infrastructure in India is perceived by e-commerce players to be inadequate, resulting in less cards being issued. The online payment platform needs to be significantlystrengthened—Indian consumers have low levels of trust and confidence in making online payments. For example, consumers surveyed on the existence of legal protection for the e-consumer in India (1 = nonexistent protection, 7 = a well-developed legal system) scored the country at 4.6, about the same as the score in Brazil (4.5) but lower than in Malaysia (5.1). The limited number of secure Internet servers in India constrains the volume of reliable transactions that can occur online. India has just three secure Internet servers per one million people, while Malaysia and Brazil each have more than 40. Lack of a robust logistics infrastructure across the country has forced online retail players to turn to third party and in-house logistics solutions. By developing e-commerce friendly features such as cash-on-delivery, reverse logistics, service level agreements, India Post could potentially provide a reliable and costeffective alternative." Data Analysis Online retail market size and growth
Source - CRISIL OPINION of February, 2014 By the CRISIL Research graph, we come to know about that from the year 2011 to 2012 we see increasing no. of people who visit the various online retail portals that goes on increasing further to an estimated rate of 5million visitor per quarter for next few years due to many factors like use of more and more sophisticated technology as we are progressing handsomely in IT sector.
267
The factors because of which we see rise of more than 55% in online retail websites visitors from 2011-2012 is the easy availability of internet at economically viable rates and during these years we saw an increase in number of gadgets like mobiles, laptops, etc. From this graph we clearly notice that the no. Of internet population grew tremendously after 2007 and the mobile services providing companies came up with many attractive offers that attracted the consumers. So to conclude mobile phones, laptops that are gadgets and easy and cheap availability of internet is an important factor that led to increase or we can say that it led to emergence of online retail in India. In this graph we analyze that the Indian market is full of liquidity or we can say cash flows as compared with the other developing economies almost alike India in their economic structure, so by this graph we see the trend why Indian online retail industry got a very sudden bullish push as it introduced the special feature of cash on delivery. The reason behind COD becoming a Midas touch for e-retail was lack of availability of debit and credit cards and even if they are available then most of them were not activated for online payments.
Source - www.dot.gov.in Department of Telecom of Govt. of India
268
Source- ERNEST &YOUNG: Rebirth of Ecommerce in India
No. of people using e -banking in India
Source-International Journal of Computing & Business Research
This pie chart shows that only 39% of the modern bank users who own atleast debit card use e-banking, so this shows us why Indian e-retail got a push by introduction of cash on delivery as this was the best alternative for Indians for payment of the commodity purchased. Online retail or e-retail emerged as a profitable business model as compared to traditional stores due to various factors. Net store additions for traditional retailers
269
Source- CRISIL Opinion of February,2014
This graph graph shows that as the number of e-retails was growing in India, an inverse or a negative effect of this was seen on the number of traditional stores in India. As we see in the above graph that the no. of additional stores of brick and mortar model is starting to decline from 2009 till 2012 to such an extent that this addition almost becomes negligible in the year 2011-2012.
We see from the above figure the supportive facts about decrease in themarket share of traditional retailers, as here we see that the current ratio of the firm has kept on falling till 2013. And the companies in which these trends are seen are kind off one of the leading retail stores in India especially the Shoppers Stop.Basically the growth and the development of online retail eclipsed the traditional retail in India. According to a recent TechnoPak report, e-retail has a potential to grow more than a hundred percent in next few years that are approximated as near about next 9 years andthis industry will reach to an all time high with revenue of $76 billion by 2021.this is just because of increasing internet penetration in India.
270
From the above graph we see that already the e-retail was showing a growth of 56% from 2007-2012 which was enough to lower the market share and profitability of traditional retail but also it shows that the current rate of growth will be maintained in the future and there will be an ever increasing increase in revenue of e-retail industry. This graph establishes two things; first one is that it shows that e-retail was in the stage of profitable business model by 2013. Secondly, it establishes that that the future of eretail in India is bright and there is a stable growth in this sector in upcoming years. Findings The major findings keeping in mind the objectives of term paper can be classified in three parts. Firstly, we see the emergence of e-retail from 2008 that can be contributed to many factors related to development in Information Technology. The major factor that led to the growth of e-retail was the greater penetration of internet in Indian households and the second factor was that now in 2008 we saw an increase in the mobile phones and other gadgets like laptop, etc. In all we can say that as the production of electronic appliances industry increased the prices of gadgets went down so, ultimately it led to increase in no. Of electronic good as well as internet facility was easily available. The timing of both the factors coincided with the initial phase of e-retail that led to the rise or we can say that these factors gave initial encouragement to this sector and due to this growth, this field was hailed by both Entrepreneurs and investors who invested in various projects that were coming in this sector at that time. This created a healthy competition in the market and ultimately the result was great growth of this industry almost 55% which was remarkable. Secondly, the online retailers understood that if they want to sustain themselves in Indian market then they have to come up with more Indianised version of e-retail that 271
was given by introduction of Cash on Delivery. This was an instant hit in the Indian market as it gave Indians the most important alternative way of payment as from the stats in data analysis we see that still only 39% of all debit card holders use online payment services. It also appealed to Indians because this service gave them the much requisite condition for trade in India i.e. product condition which is related to their satisfaction. Nowadays, COD has such importance that it can result into life and death of many firms of this industry in India. Thirdly, we saw that by 2013 e-retail was in stable growth. There were sections which were more profitable and they saw a huge growth. In the graph given below we see that most purchased goods were books and apparel industry. By this graph we came to know about actual growth of different sections during 2008-2013.This would help the eretailers to find out the strategy for the growth of sections that are lagging behind, so that a firm can get maximum profit.
Source: Nielson Conclusion Online retail not only focuses on web capabilities but also on how well the peripheral aspects of online retail are taken care of. Online retail players pay as much attention to inventory management, logistics and warehouse management as they do to their online platforms. They need to invest time and money on all these, since customer experience is a function of how well they work in sync. There is significant scope for online retail players to focus on new product delivery modelsand payment mechanisms, since customers are facing problems with the options available.The online retail market presents an attractive opportunity for entrepreneurs, since it isgrowing rapidly and still forms only a miniscule portion of organized retail. Moreover, thereare a number of underpenetrated segments such as online groceries in online retail. Playersalso have
272
opportunities in sectors impacted by online retail, e.g., logistics, in which last-milereach is a problem. While organized retail players are attracted by opportunities presented by the online retailsector, they have critical questions pertaining to modes of entry, pricing decisions andcustomer segmentation. References Gugnani and Brahma, 2010, p. 3-6 Crisil, research opinion, 2013, p. 3 & 5 Terron, 2012, p. 2 & p.6 Ernest and Young, sheth, 2012 p. 50-56 Gnanasambandam, Madgavkar, Kaka, Manyika, Chui, Bughin& Gomes, 2012, p.11-16 Yuan, 2014, p. 1-2
273
Section V Consumer Behaviour
CUSTOMER SATISFACTION IS AN OUTCOME OF SERVICE QUALITY AND CORPORATE IMAGE IN CONTEXT OF TELECOM SECTOR IN INDIA Dr. Nischay K. Upamannyu, Prof. Chanda Gulati, Prof. Ritu Gangil Abstract Satisfaction of the customers is the core business challenge for any service industry. This paper reports the result of an empirical study into the customer satisfaction drivers in the telecom industry. The purpose was to examine the effect of service quality and corporate image on customer satisfaction. The survey captures the customer satisfaction of several mobile service users with respect to the quality and corporate image. The findings revealed that there is a strong cause and effect relationship between service quality, corporate image and customer satisfaction. Keywords: Service Quality, Customer Satisfaction, Corporate Image, Telecom Sector Introduction Telecom services have been acknowledged worldwide as an essential area for social economic development of a country. Socio devilment refers the development of the entire society because in the society, each and every person have started using the service of telecom sector. Therefore, it has become a crucialtool for the socialdevelopment. Economic development also results from development of telecommunication. India is currently the world second largest market in the telecommunication. It has also been seen exceptional growth in the past few years. The contribution of telecommunication in the GDP will be approximately US 400 Billion in the Gross domestic product, according to report prepared by GSMA in collobration of BCG. The deregulation of foreign direct investment (FDI) norms has made the sector one the fastest growing and a top five employment opportunity generatior in the country. Telecommunication is one of the most prime support services needed for the rapid growth and modernization of various sectors of the economy. Due to increase in the mobility and the emerging complex business environment people are moving from one place to another. Therefore, people need to talk with the connected people for picking up the right decision at the right time during their movement. Mobile or Cell phone is such a sort of vehicle that made the communication
275
easier even for the rural people as well. Therefore, the stiff competition, companies are doing their best to acquire the maximum share of the market by providing various services to satisfy the customer’s needs, wants and demands. As competition has escalated among the operators they need to understand the requiremenmt of providing adequate service quality, uses of brand image to evaluate the customer satisfaction. The present study aims to gather primary data from the users of telecom consumers from multi age respondents which will present the findings about the degree of influence of service quality, brand image and customer satisfaction towards user’s perception on telecom operators in Madhya Pradesh. This study presents a conceptual and exploratory analysis of the relevant variables which will direct for further empirical studies. Quality is generally regarded as being a key factor in the creation of worth and in influencing customer satisfaction. Hence, the telecommunication industry has to be strategically positioned to provide quality services to satisfy customers. To provide an improved quality service, telecommunication companies need to investigate the degree of customers’ sensitivity and expectations toward service quality. Review of Literature Service quality Crosby et al., (2003) concluded thatknowledge of quality is not an essential for perceiving in the mind of the consumer on the first impression. Phusavat and Kanchana (2008) described quality represented the most important competitive priority. Parasuraman et al, Grönroos, (1982) identified Service quality is a complex, elusive, subjective and abstract concept. It means subjective in nature. Holbrook & Corfman, Jacobson & Olshavsky (1985) Customer perceptions of the quality encourage to consumers repeat buying behavior attitude. Pariseau and McDaniel (1997) found that customers experienced a difference between expectation and perception on the service received. Reeves and Bednar (1994) examined service quality is an elusive concept that is difficult to define and measure. Huff et al. (1994) stated that, "Despite its current popularity, there is little agreement on what quality is and how to achieve it". Zeithaml et al. (1990) stated that "service quality, as perceived by customers, can be defined as the extent of discrepancy between customers' expectations or desires and their perceptions". Ismail et al. (2006) stated that the company must ask customers about the quality to maintain profit and satisfaction. Parasuraman et al (1985) defined service quality is the difference between consumer expectation and perceptions of services delivered by service firms. Nitecki et al (2000) explored service quality in terms of “meeting or exceeding customer expectation, or as the difference between customer perceptions and expectation of the service.” Gronross (1984), Parasuraman, Zeithaml and Berry (1985) and Johnston (1995) defined that
276
service quality in terms of customer satisfaction, that is, the degree of fit between customers‟ expectations and perceptions of service. Crosby et al., (2003) noted that an understanding of quality is not necessarily something that is perceived in the mind of the consumer upon the first impression. Pariseau and McDaniel (1985) stated that if there is an agreement that service quality exceeds, meets or falls below expectation, there would be a common ground for continuation or improvement of the service quality level. Corporate image Ells (1959) found that the purpose behind the promotion of a corporate image was twofold: to link the company to its social environment and to help achieve company objectives. Bevis (1967), quoted by Bernstein (1984) examined corporate image is the net result of the interaction of all the experiences, beliefs, feelings, knowledge and impressions that people have about a company. Keller (1993) defined corporate image an ficticious assest to the service organization which influence the perception of the customers about the business firm to buy the products nad service from an organization. Nguyen and LeBlanc (1998) founded that corporate image consist of subjective knowledge, attitude i.e., ideology, corporate name, reputation and delivery system quality level. Kandampully and Hu (2007) identified the characterstic such as functional (tangible) and emotional (feelings, attitudes and beliefs) of the corporate image. Keller (1993) stated corporate image is the net result of the interaction of all the experiences, beliefs, feelings, knowledge and impressions, that people have about a company. Nguyen and Leblanc (1998, 2001) claimed that corporate image is an integration of business name, architecture, variety of products/services, and to the impression of quality communicated by each person interacting with the firm’s clients. Upamannyu et.al (2014) stated that corporate image is the mental picture which are perceived by the customer in context of the organization. Customer satisfaction Anderson et al (1994) explored that low customer satisfaction leads to complaining behavior. A satisfied customer indicator of delightness which leads to loyalty P. Kotler, G. Amstrong (2006). Oliver (1980) Satisfaction can be defined as the extent of the emotional reaction from a service experience. Mentzer et al., (1995) defined the customer satisfaction on the basis of outcome or as a process. Also stated that customer satisfaction with maximize the profitability and market share. Hunt (1977) defined customer satisfaction as "an evaluation rendered that the experience was at least as good as it was supposed to be". Crosby, L.B., DeVito, R., & 277
Pearson, J.M. (2003) Oliver, R. L. (1980) defined customer satisfaction as a feeling of pleasure or disappointment after evaluating the service rendered by the organization. Oliver (1997) stated thatthe customer’s overall positive response to the entire services served them. Gotlieb et al., (1994) examined that quality of product influence the customer satisfaction. Caruana; Fullerton et al. (2002) proposed that customer satisfaction is post evaluation of the services. Hennig-Thurau and Klee, (1997), examined customer satisfaction is the base how the customer judge the service performed. Upamannyu K. Nischay & Bhakar S.S (2014), Customer Satisfaction is a comparison of expectations versus perceptions of experience. Upamannyu K. Nischay & Sankpal Shilpa (2014) customer satisfaction (CS) is a measure of the degree to which a product or service meets the customer's expectations. Objectives of the study To design, develop and standardize measure for evaluating Service Quality, Corporate Image and Customer Satisfaction. To identify underlying factors of Service Quality, Corporate Image and Customer Satisfaction. To establish the cause and effect relationship between Service Quality and Corporate Image, Service Quality and Customer Satisfaction, and Corporate Image and Customer Satisfaction. To establish the cause and effect relationship between Service Quality, Corporate Image on Customer Satisfaction. Research Methodology The Study: The study was causal in nature being survey method appliedto data collection. Population: The population in the current study was that entire customers who were usingmobile services of various mobile companies. Sample Size: The sample size ofthe current study was 250 respondents. Sampling element: Individual respondent was treated in the current study as a sampling element. Sampling techniques: A non probability purposive sampling technique was used in the current study. Tools Used for Data Collection: Self designed questionnaire for all the measure were developed and used for Data collectionon likert type of scale. Tools Used for Data Analysis
278
The Croanbach alpha reliability method was applied on service quality, corporate image and customer satisfaction. To check the reliability of used measuresin the current study so that if the similar study would be conducted in the near future, so theresults of that study would be reliable or repeatable. Exploratory factor analysis was applied to service quality, corporate image and customer satisfaction to identify underlying factors of measured used in the current study. Linear Regressions were applied to establish cause and affect relationship between the service quality and customer satisfaction; corporate image and customer satisfaction. Multiple regressions were applied to establish the cause and effect relationship between the service quality and corporate image (independent variable), customer satisfaction (dependent variable).
Results and Discussions Reliability analysis Reliability test of corporate image A reliability test was carried out by using IBM SPSS 21 software. Where in Cronbach alpha reliability test is was applied to check the reliability coefficient, which was computed for the entire statement used in the questionnaire of corporate image. Table no.1-Reliability Statistics Cronbach's Alpha No. of Items .919
12
The reliability test revealed the results wherein Cronbach’s alpha reliability whichwas found to be 0.919. The value of Croanbach’s Alpha reliability which is more than the standardize value (0.7). Hence, it can be said that all the statement of the questionnaire is valid and the questionnaire can be treated has highly reliable. Reliability test of Service Quality A reliability test was carried out by using IBM SPSS 21 software. Where in Cronbach alpha reliability test is was applied to check the reliability coefficient, which was computed for the entire statement used in the questionnaire of service quality. Table No:2-Reliability Statistics Cronbach's Alpha .960
279
N of Items 31
The reliability test revealed the results wherein Cronbach’s alpha reliability which was found to be 0.960. The value of Croanbach’s Alpha reliability which is more than the standardize value (0.7). Hence, it can be said that all the statement of the questionnaire is valid and the questionnaire can be treated has highly reliable. Reliability of customer satisfaction A reliability test was carried out by using IBM SPSS 21 software. Where in Cronbach alpha reliability test is was applied to check the reliability coefficient, which was computed for the entire statement used in the questionnaire of Customer satisfaction. Table No :3 - Reliability Statistics Cronbach's Alpha .937
No. of Items 16
The reliability test revealed the results wherein Cronbach’s alpha reliability which was found to be 0.937. The value of Croanbach’s Alpha reliability which is more than the standardize value (0.7). Hence, it can be said that all the statement of the questionnaire is valid and the questionnaire can be treated has highly reliable. Factor Analysis Factor Analysis of corporate image KMO & Bartlett’s Test were applied. Wherein, the result of The Kaiser – Meyer – Olkin Measure of Sampling Adequacy was found to be 0.931, indicating that the corporate image sample was adequate enough to consider the data as normally distributed in the current study. Table No:4- KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig.
.931 1568.300 66 .000
The Bartlett’s Test of sphericity led a null hypothesis that the item to item correlation matrix is identical matrix. The result of Bartlett’s test of Sphericity was evaluated through the Chi-Square Value, the value of Chi-square was found to be 1568.300 which is significant at 0.000% level of significance. Therefore, the null hypothesis stating ‘item to item correlation as identity matrix’ is rejected, indicating that the data is suitable and normally distributed so it can be used for factor analysis. Principal component Analysis table of corporate image Principal component analysis was applied to find out underlying Factor of measured used in the current study. Factor analysis resulted into two underlying factor in
280
corporate image Questionnaire the table represent the factor name with their Eigen value and %of variance and also the item which contributed to single factor are represent in the table along with their loading. Innovative (6.358): This factor has emerged as the most important determinant of innovative for selected Brand with total variances of 34.632. Seven measures were converted into one factor. Table No: 5- Principle Component Analysis Factor name
Innovative
Excellent service
Total Eigen Value 6.358
1.121
Sum of rotated Item converged square Total Variance 4.156 34.632 Company is innovative Successful company Superior technology Good reputation Reliable company Pioneering company Familiar to the customer 3.323 27.692 Honest Excellent service Sincere to the customers Contribution to the society Large scale company
Factor loading .801 .774 .769 .768 .668 .661 .606 .800 .766 .749 .653 .625
Excellent service (1.121): This factor has emerged as the most important determinant of perceived value for selected Brand Airtel, Idea and Vodafone with total variances of 27.692. Five measures were converted into one factor. KMO and Bartlett's service quality KMO & Bartlett’s Test were applied. Wherein, the result of The Kaiser – Meyer – Olkin Measure of Sampling Adequacy was found to be 0.946, indicating that the service quality sample was adequate enough to consider the data as normally distributed in the current study. Table No:6- KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig.
.946 4833.069 465 .000
The Bartlett’s Test of sphericity led a null hypothesis that the item to item correlation matrix is identical matrix. The result of Bartlett’s test of Sphericity was evaluated
281
through the Chi-Square Value, the value of Chi-square was found to be 4833.069 which are significant at 0.000% level of significance. Therefore, the null hypothesis stating ‘item to item correlation as identity matrix’ is rejected, indicating that the data is suitable and normally distributed so it can be used for factor analysis. Principal component Analysis table of service quality Principal component analysis was applied to find out underlying Factor of measured used in the current study. Factor analysis resulted into two underlying factor in corporate image Questionnaire the table represent the factor name with their Eigen value and %of variance and also the item which contributed to single factor are represent in the table along with their loading. Table No.:7-Principle Component Analysis Factor Name
Responsiveness
Total Eigen Value 14.211
Sum of Rotated Square Total Variance 4.421 14.261
Better services
1.582
4.159
13.415
Advance technology
1.288
3.924
12.660
Customer support
1.093
3.709
11.963
Network quality
1.014
2.974
9.595
282
Item Converged
Factor Loading
Easily accessible Promises Willing to help Give prompt service Respond to customer request Employee can be trusted Charges are accurate Offer better promotion Visually appealing Customer information Feel safe in their transaction Promise to do something To complete a call Up to date equipment Convenient places network No noise during the call Associated with the service Neat in appearance Interest of the customer To answer customer question Courteous with customer Individual attention Convenient to all Needs of their customer Feel safe doing business Competitive prices Wider range of product Wide range network Network is always good
.740 .686 .679 .644 .606 .580 .540 .681 .677 .623 .564 .480 .459 .652 .618 .618 .587 .526 .666 .647 .595 .585 .584 .485 .451 .785 .677 .509 .493
Responsiveness (14.211): This factor has emerged as the most important determinant of responsiveness for selected mobile services with total variances of 14.261. Seven measures were converted into one factor. Better services (1.582): This factor has emerged as the most important determinant of Better services for selected mobile services Airtel, Idea and Vodafone with total variances of 13.415. Six measures were converted into one factor. Advance technology (1.288): This factor has emerged as the most important determinant of Advance technology for selected mobile services with total variances of 12.660. Five measures were converted into one factor. Customer support (1.093): This factor has emerged as the most important determinant of customer support for selected mobile services with total variances of 11.963. Seven measures were converted into one factor. Network quality (1.014): This factor has emerged as the most important determinant of Network quality for selected mobile services with total variances of 9.595. Four measures were converted into one factor KMO and Bartlett's Test customer satisfaction KMO & Bartlett’s Test were applied. Wherein, the result of The Kaiser – Meyer – Olkin Measure of Sampling Adequacy was found to be 0.946, indicating that the service quality sample was adequate enough to consider the data as normally distributed in the current study. Table No:8-KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig.
.946 2231.833 120 .000
The Bartlett’s Test of sphericity led a null hypothesis that the item to item correlation matrix is identical matrix. The result of Bartlett’s test of Sphericity was evaluated through the Chi-Square Value, the value of Chi-square was found to be 2231.833 which are significant at 0.000% level of significance. Therefore, the null hypothesis stating ‘item to item correlation as identity matrix’ is rejected, indicating that the data is suitable and normally distributed so it can be used for factor analysis. Principal component Analysis table of customer satisfaction Principal component analysis was applied to find out underlying Factor of measured used in the current study. Factor analysis resulted into two underlying factor in Customer Satisfaction Questionnaire the table represent the factor name with their
283
Eigen value and %of variance and also the item which contributed to single factor are represent in the table along with their loading. Facility (8.271): This factor has emerged as the most important determinant of responsiveness for selected mobile services with total variances of 34.058. Eleven measures were converted into one factor. Quality (1.139): This factor has emerged as the most important determinant of responsiveness for selected mobile services with total variances of 24.756. Five measures were converted into one factor. Table No: 9-Principle Component Analysis Factor name Total Eigen Rotated Sum of Squares Item Converged Value Total Variance Facility 8.271 5.449 34.058 Solving customer problem Roaming charges Billing accuracy Call rates Customer service Another network Charges Fix line Internet pick Network Ease of getting Quality 1.139 3.961 24.756 Coverage Signal reception quality Covered by network Service quality on highways Speed of getting
Factor Loading .784 .748 .724 .705 .559 .693 .679 .658 .630 .510 .472 .858 .765 .721 .659 .586
REGRESSION ANALYSIS Effect of corporate image on customer satisfaction H01: There is no relationship between corporate image, and customer satisfaction. Simple Linear regression test was applied between corporate image and customer satisfaction. Here, corporate image was taken as independent variable and customer satisfaction was treated as dependent variable. Table no.10- Model summary Model R R SQUARE Adjusted R square 1 .653a .427 .425 Predictors: (constant), corporate image
284
Std. error of the estimation 13.35017
The model summary table indicated the value of R2 which was found to be .427, indicating that corporate image as independent variable explained 42.7% variance on customer satisfaction as dependent variable. Table no.11-ANOVAa Model Sum of Squares 1 Regression 32921.969 Residual 44200.335 Total 77122.304 a. b.
df 1 248 249
Mean Square 32921.969 178.227
F 184.719
Sig. .000b
Dependent Variable: Customer Satisfaction Predictors: (Constant), Corporate Image
The goodness fit for the model was tested using ANOVA Table and the F value was found to be 184.719 that was significant at 0.000 level of significance, indicating that the model is showing highly fit. Table no. 12-Coefficientsa Model Unstandardized Coefficients B Std. Error 1 (Constant) 27.227 4.012 Corporate .860 .063 Image a.
Standardized Coefficients Beta .653
T
Sig.
6.787 .000 13.591 .000
Dependent variable: customer satisfaction
The result of coefficient table indicated the contribution of independent variable on dependent variable was tested through the beta value.653 which was tested through the t value was found to be 13.591 which was found to be significant at 5% level of significance. Hence the hypothesis which was developed in the current study indicating that there is no cause and effect relationship between corporate image and customer satisfaction is rejected at 5% level of significance. Hence there is strong cause and effect relationship between corporate image and customer satisfaction. Effect of Service quality on customer satisfaction H02: There is no relationship between service quality and customer satisfaction. Simple Linear regression test was applied between service quality and customer satisfaction. Here, service quality was taken as independent variable and customer satisfaction was treated as dependent variable.
Model 1
R .782a
Table No:13-Model Summary R Square Adjusted R Square Std. Error of the Estimate .612 .611 10.98088
285
The model summary table indicated the value of R2 which was found to be .612 indicating that service quality as an independent variable explained 61.2% variance on customer satisfaction as the dependent variable. Table No:14-ANOVAa Model Sum of Squares 1 Regression 47218.535 Residual 29903.769 Total 77122.304
Df 1 248 249
Mean Square 47218.535 120.580
F 391.596
Sig. .000b
a. Dependent variable: customer satisfaction b. Predictors:(constant), service quality
The goodness fit for the model was tested using ANOVA Table and the F value was found to be 391.596 which were significant at 0.000 level of significance, indicating that the model is showing highly fit. Table No:15- Coefficient Model Unstandardized Coefficients B Std. Error 1 (Constant) 12.389 3.513 Service Quality .433 .022 a.
Standardized Coefficients Beta .782
T
Sig.
3.527 .001 19.789 .000
Dependent variable: customer satisfaction
The result of coefficient table, indicated the contribution of independent variable on dependent variable was tested through the beta value 0.782 which was tested through the t value was found to be 19.789 which was found to be significant at 5% level of significance. Hence, the hypothesis which was developed in the current study, indicating that there is no cause and effect relationship between service quality and customer satisfaction is rejected at 5% level of significance. Hence, there is strong cause and effect relationship between service quality and customer satisfaction. Effect of corporate image, service quality on customer satisfactionH03: There is no relationship between corporate image, service quality and customer satisfaction. Multiple regression test was applied between corporate image, service quality and customer satisfaction. Here, corporate image and service quality were taken as independent variable and customer satisfaction was treated as dependent variable. Model 1
R .783a a.
R Square .613
Table No:16-Model Summary Adjusted R Square Std. Error of the Estimate .610 10.99749
Predictors:(constant), corporate image, service quality
286
The model summary table indicated the value of Adjusted R2 which was found to be 0.613, indicating that corporate image and service quality together as independent variable explained 61% variance on customer satisfaction as dependent variable. Table No: 17 ANOVA Model 1 Regression Residual Total
Sum of Squares 47248.962 29873.342 77122.304
Df 2 247 249
Mean Square 23624.481 120.945
F 195.333
Sig. .000b
a. Dependent variable: customer satisfaction b. Predictors:(constant), corporate image, service quality
The goodness fit for the model was tested using ANOVA Table and the F value was found to be195.333 which was significant at 0.000 level of significance, indicating that the model has high fit with data. Table No:18-Coefficientsa Model Unstandardized Coefficients B Std. Error 1 (Constant) 12.678 3.565 Service Quality .451 .041 Corporate Image -.049 .098 a.
Standardized Coefficients Beta .814 -.038
t
Sig.
3.556 .000 10.884 .000 -.502 .616
Dependent variable: customer satisfaction
The result of coefficient table, indicated the contribution of independent variable on dependent variable was tested through the beta value .814 which was tested through the t value was found to be 10.884 which was found to be significant at 5% level of significance. Hence, the hypothesis which was developed in the current study, indicating that there is no cause and effect relationship between corporate image and customer satisfaction is rejected at 5% level of significance. Hence, there is strong cause and effect relationship between corporate image and customer satisfaction. The result of coefficient table, indicated the contribution of independent variable on dependent variable was tested through the beta value -.038 which was tested through the t value was found to be -.502 which was found to be significant at 5% level of significance. Hence, the hypothesis which was developed in the current study, indicating that there is no cause and effect relationship between service quality and customer satisfaction is rejected at 5% level of significance. Hence, there is strong cause and effect relationship between service quality and customer satisfaction. Suggestions In the current study, 250 respondents have been taken. Further study could be carried out using larger sample to ensure generalization of result. In the current study non-
287
probability sampling technique is used, thus it is suggested to the researchers that further study could be carried out by using probability sample technique. Limitation In the current study the respondents are from Gwalior city only. The result may not be suitable to generalize for the entire country. Conclusion The driving purpose behind pursuing this study was to determine the relationship of corporate image, service quality and customer satisfaction. Customer satisfaction was chosen as the dependent variable and the impact of the above – mentioned independent variable was checked by questionnaires. Through our analysis, we came to know that there was relationship of customer satisfaction with all of the independent variables, which implies that the null hypothesis rejected. Independent variables are positive and significantly linked with the dependent variable, which shows the customer satisfaction can be achieved by improving corporate image and service quality. The purpose of this study is to develop and implement a method for mobile services brand to identify attributes that increased customer satisfaction. This study also explored the relationship between corporate image, service quality and customer satisfaction in telecommunication industry. Refrences Anderson, E. W. Fornell, C. and Lehmann, D. R. (1994), "Customer satisfaction, market share, and profitability: Findings from Sweden", Journal of Marketing, Vol. 58, pp.53-66. Beard, C & Hartmann, R, (1999), “European and Asian Telecoms – Their Role in Global Sustainable Development” European Business Review, 99(1), 42-54. Bernstein, D. (1984), “Company Image and Reality: A Critique of Corporate Communications, Eastbourne, Holt, Rinehart & Winston Ltd”. Berry, L.L., Zeithaml, V.A. and Parasuraman, A. (1985), “Quality counts in services, too”, Business Horizons, pp. 44-52. Buchanan, T, (1985), “Commitment and leisure behavior” A theoretical perspective. Leisure Science, 7, 401420. Caruana, A. (2002), “Service loyalty – the effects of service quality and the mediating role of customer satisfaction”, European Journal of Marketing, Vol. 36 Nos 7/8, pp. 811-27. Churchill, G. A. and Surprenant. C. (1982), "An Investigation into the determinants of customer satisfaction", Journal of Marketing Research, Vol. 19 (November), pp.491-504. Crosby, L.B., DeVito, R., & Pearson, J.M., (2003), “Manage Your Customers’ Perception of Quality”. Review of Business, 24, 18-38.
288
Crosby, L.B., DeVito, R., & Pearson, J.M., (2003), “Manage Your Customers’ Perception of Quality”. Review of Business, 24, 18-38. D.A. Nitecki and P. Hernon, (2000), “measuring service quality at Yale University’s”liabraries, journal of Academic Liabrarianship, Vol. 26(4), PP. 259-273 Deng, Z., Lu, Y, Wei, K. K., Zhang, J. (2009), “Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China”, International Journal of Information Management, Vol. 30, pages 289–300. Dowling, G. (1988), “Measuring corporate images: a review of alternative approaches”, Journal of Business Research, Vol. 17, pp. 27-34. Eells, R. (1959), "The corporate image in public relations", California Management Review, 1, summer, pp. i5-23. Ekinci, Y., Dawes, P. L., & Massey, G. R. (2008). “An extended model of the antecedents and consequences of consumer satisfaction for hospitality services”. European Journal of Marketing, 42(1), 35– 68. Fombrun, C.; and Shanley, M., (1990), “What’s in a name? Reputation building and corporate strategy”, Academy of Management Journal, Vol. 33, No. 2, pp. 233-58. Gotlieb, J.B., Grewal, D. and Brown, S.W. (1994), “Consumer satisfaction and perceived quality: complementary or divergent constructs?” Journal of Applied Psychology, Vol. 79, No. 6, pp. 875-85. Grönroos, C., (1982), “Strategic Management and Marketing in the Service Sector. Cambridge: Marketing Science Institute”. Gronroos, C. (1984), “A service quality model and its marketing implication”, Journal of marketing, 18, 3644. Gustafsson, A., Johnson, M.D., and Roos, I. (2005), “The Effects of Customer Satisfaction, Relationship Commitment Dimensions, and Triggers on Customer Retention”, Journal of Marketing, Vol. 69, pg. 210– 218. Hatch, M.J., Schultz, M. and Williamson. J, (2003), “Bringing the corporation into corporate branding”, European Journal of Marketing, Vol. 37 No. 7/8, pp. 1041-64. Hennig-Thurau, T., and Klee, A. (1997), “The Impact of Customer Satisfaction and Relationship Quality on Customer Retention: A Critical Reassessment and Model Development”, “Psychology & Marketing”, Vol. 14, Issue 8, Page 737–764. Holbrook, M. B. & Corfman, K. P., (1985), “Quality and value in the Consumption Experience: Phaedrus Rides Again, in perceived Quality”, Jacob jaco by and Jerry Olson, eds. Lexington, MA: Laxington Books, 31-57. Huff, L., Fornell, C., and Anderson, E., (1994), "Quality and Productivity: Contradictory and Complementary", Working Paper, National Quality Research Centre, University of Michigan School of Business Administration.
289
Hunt, K. (1977), "Consumer satisfaction/dissatisfaction: overview and future research directions", In H. K. Hunt (Ed.), Conceptualization and Measurement of Consumer Satisfaction and Dissatisfaction, (PP.455-488). Cambridge, MA: Marketing Science Institute. Ismail, S; Haron, H; Ibrahim, D.N.; and Isa, S.M. (2006), "Service quality, client satisfaction and loyalty towards audit firms, perceptions of Malaysian public listed companies", Managerial Auditing Journal, Vol. 21 No. 7, pp.738-756. Kandampully, J.; and Hu, H.H., (2007),"Do hoteliers need to manage image to retain loyal customers?", International Journal of Contemporary Hospitality Management, Vol. 19, No. 6, pp. 435 – 443. Keller, K, (1993), “Conceptualizing, measuring, and managing customer based equity”. Journal of Marketing, 1(1), 1-22. http://dx.doi.org/10.2307/1252054 Leuthesser, L.; and Kohli, C., (1997), “Corporate identity: the role of mission statements”, Business Horizons, Vol. 40, pp. 59-66. Mentzer, J. T., Bienstock, C. C., and Kahn, K. B. (1995), "Benchmarking satisfaction: Market leaders use sophisticated processes to measure and manage their customers’ perceptions", Marketing Management, Vol. 4 No. a, pp.45-46. Nguyen, N.; and LeBlanc, G., (1998), “The mediating role of corporate image on customers’ retention decisions”an investigation in financial services”, International Journal of Bank Marketing, Vol. 16, No. 2, pp. 52-65. Oliver, R. L. (1980). “A cognitive Model of the antecedents and consequences of satisfaction Decisions” Journal of Marketing Research, 17 (November), 460-9. P. Kotler and G. Armstrong, (1996), “Principal of marketing, prentice-hall”, New Jersey. Phusavat, K. & Kanchana, K, (2008), “Competitive priorities for service providers”: perspectives from Thailand. Industrial Management & Data Systems, 108(1), 5-21. Reeves, c.a. y Bednar, d.a, (1994), “Defining quality: alternatives and implications” Academy of Management Review 19(3), pp. 419-445. S.E. Pariseau and J.R. McDaniel (1997). Assessing service quality in school of business. International Journal of Quality and Reliability Management, 1997, 14(3):204-218. Selame. E. and Selame, J. (1975), “Developing a Corporate Identity: How to Stand Out in a Crowd” New York, Chain Store Publishing Corporation. Tse, D. K. and Wilton, P. C. (1988), "Models of consumer satisfaction formation: An extension", Journal of Marketing Research, Vol. 25 No. 2, pp.204-212. Upmanyu, Nishchay, Bhakar, Sher Singh (2014), Effect of Customer Satisfaction on Brand Image and Loyalty Intention: A Study of Cosmetic Product, International Journal of Research in Business and Technology, 4(1), 296-307, ISSN 22912118. Upamannyu K. Nischay & Sankpal shilpa (2014), “Effect of brand image on customer satisfaction & loyalty intention and the role of customer satisfaction between brand image and loyalty intention.”
290
Zeithaml, V.A., Parasuraman, A., Berry, L.L., (1990), “Delivering Quality Service”, The Free Press, New York.
291
MEDIATING ROLE OF CUSTOMER PERCEIVED VALUE IN SERVICE QUALITY – CUSTOMER SATISFACTION LINK: AN EMPIRICAL STUDY OF TELECOM SECTOR IN GWALIOR REGION Dr. Anil K. Singh Abstract Service Quality is universally accepted as one of the major determinant of Customer Satisfaction across all service industries. This research paper validates the role service quality plays in causing customer satisfaction with special reference to mobile industry in Gwalior.Then this paper studies the mediating role Customer Perceived Value plays between Service Quality and Customer satisfaction by using Multiple Regression as suggested by Baron & Kenny. Key words: Customer Perceived Value, Mediation, Baron & Kenny Method Introduction: India has emerged as the fastest growing telecom industry in the world. Presently it has over 900 million telecom subscribers out of which 19.68 million were added in last one year only. Today India stands out as the second largest country in terms of number of telephone connections. The teledensity too has increased to 74 % (Urban-144.95% and Rural 42.67%). Competition has intensified because of presence of so many service providers and it has forced every company in the industry to pay attention to improve service quality which leads to high customer perceived value which in turn leads to greater customer satisfaction. The present research is an attempt to validate the universally accepted service quality-customer satisfaction link and to explore the mediating role played by customer perceived value in service quality-customer satisfaction link. Customer Perceive Value
Customer
Service Quality
Satisfaction
Research Model
292
Objectives The objectives of this research paper are: 1. To define Service Quality, Customer Satisfaction and Customer Perceived Value 2. To define Mediation Effect and discuss methods to measure Mediation Effect. 3. To study and validate positive impact of service quality on customer satisfaction. 4. To study the role of Customer Perceived Value as a mediating variable between service quality and customer satisfaction. Review of Literature Service Quality Service Quality is combination of two words, Service and Quality. As per Hasenfield (1974) service can be defined as actions of an individual or organization that maintain and improve well being or functioning of people. Quality focuses on standard or specification that a generating organization promises. Parasuraman, Zeithaml & Berry (1988) defined service quality as the customers overall judgment of the excellence of the service or the difference between ones expectation and the actual service performed. The American Society for Quality Control defined quality as "the totality of features and characteristics of a product or service that bear on its ability to satisfy the stated or implied needs". Parasuraman et al., (1994) considered quality as a gap between what customers feel should be offered and what is actually provided. According to Thomas, Dan R. E., (1978), service differentiation is necessary for the growth and development of service businesses. Ladhari (2009) studied service quality and found it to be top priority of present day business organisations as it gives them not only competitive advantage but also play a crucial role in sustaining growth. Howat et al (2008) & Chen (2008) found that interest of marketers and academicians in service quality is due to its favorable impact on customer satisfaction and customer loyalty. Jonson (2008) stated that there is clear relationship between improving service quality & higher profit. Seth et al (2005) studied the role of service quality in company performance and attracting new customers. Characteristics of Services Kandampully, (2002) described services as intangible in the sense that they cannot be seen, felt, tasted, or touched. He explained four unique characteristics that differentiate service from a product. These four characteristics are:
293
1. Intangibility 2. Heterogeneity 3. Inseparability 4. Perishability Berry, Parasuraman and Zeithaml (1985) were pioneers in service quality research. They carried their research in four different service areas namely banking, stock broking, credit card companies, and household appliances. They came up with ten factors to describe service quality namely 1 Dependability, 2 Willingness, 3 Competence, 4Availability, 5 Courtesy, 6 Communication, 7 Trustworthiness, 8 Assurance, 9 Empathy and 10 Tangibility. Concept of Customer Perceived Value: Zeithaml (1988) defined Customer Perceived Value as “the consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given.” She considered this assessment as a comparison of a product or service’s ‘get’ and ‘give’ components. Noteworthy Contributions: Porter (1990) discussed the concept of value as ‘superior value to the buyer in terms of product quality, special features, or after-sale service.P. Kotler, and L. Keller (2006) concluded that Customer perceived value is the differences between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Holbrook (1994) studied customer value and emphasized its importance by declaring it the fundamental basis for all the marketing activity. Sirdeshmukh, Singh, and Sabol (2002) while drawing comparison between customer value and customer loyalty, described customer value as super ordinate goal and customer loyalty as subordinate goal, he further elaborated that according to goal and action identity theory super ordinate goal regulates the subordinate goal. Behavioral intentions of loyalty are directed towards a particular service provider as long as customer receives superior value. Bolton & Drew, (1991) defined customer perceived value as a major determinant of customer loyalty in telephone industry. Concept of Customer satisfaction: Oliver (1997) defined Customer satisfaction as Consumer’s fulfillment response. It is consumer’s judgment that a particular product or service is providing pleasurable level of fulfillment, though, it could be under or over fulfillment. Over fulfillment provide pleasure by delivering additional unexpected pleasure and underfulfilment provides pleasure by providing greater pleasure than one anticipated. Westbrook and Oliver (1991) described customer satisfaction is a post choice evaluative judgment concerning a specific purchase selection. Oliver (1987) examined whether
294
satisfaction was an emotion and concluded that satisfaction is a summary attribute phenomenon coexisting with other consumption emotion Rust and Zahorik (1993) Studied Customer Satisfaction in retail banking sector and developed a mathematical model to determine which customer satisfaction component has greatest impact and how much money should be spent to maximize customer satisfaction. Measuring Customer satisfaction has a critical role in bringing service improvement. It allows an agency to understand what its customer’s value, how values vary between different types of customers, and where the agency can take action to improve service delivery. Lawler Edward (1995) explained that companies are successful which possess quality service in the top of their vision list. These companies measure customer satisfaction and identify the most common reasons behind customer dissatisfaction and then they attempt to eliminate them. The expectancy disconfirmation theory proposes that consumers make satisfaction judgments by evaluating actual product/service. Four psychological theories were identified by Anderson that can be used to explain the impact of expectancy or satisfaction:1 Assimilation Theory 2. Contrast Theory 3. Generalised Negativity Theory 4. Assimilation-Contrast Theory Deyong (1994) came up with a methodology to identify conceptual links between customer satisfaction dimensions and process performance metrics. Their methodologies indicated a link between the customer satisfaction dimensions and process performance metrics. Brown & Swartz (1989) found that when a service is given, the personal relationship that gets established between employees and customers will be extremely important in determining the service quality perception. In turn, the perception of the quality offered by the organization on the part of the employee has an impact on the real quality offered. Service Quality: The Key Influence in Customer Satisfaction According to Berry et al (1997) found that service quality has become an important differentiator and also the most powerful weapon against competitor, which all the service organizations want to possess. In a study Zeithaml, Berry and Parasuraman (1996) show that companies which offer superior service register higher than normal growth in market Share.Zeithmal et al (1996) developed a conceptual framework for the behavioral and financial consequences
295
of service quality. Superior (inferior) service quality is related to favorable (unfavorable) behavior intentions. Taylor and Baker (1994) in a study found that service quality and customer satisfaction are recognized as key factors in the formation of customers purchase intentions in service industry. It appears that customer decision-making which comprises the interaction of satisfaction and service quality explains customer purchase intentions to better extent. Bolton (1998) proved that customer satisfaction is directly related to the tenure of the relationship. The strength of the relationship between tenure and satisfaction levels depends on the length of customer’s prior experience with the organization. Hallowell (1996) studied the relationship between customer satisfaction and customer loyalty and customer loyalty and profitability using multiple measures of satisfaction, loyalty and profitability and found that attainable increase in satisfaction leads to dramatic increase in profitability Cronin Brady and Hult (2000) conceptualized the effects of quality, satisfaction and value on consumer’s’ behavioral intentions and concluded that indirect effects of service quality and value enhance their impact on behavioral intentions. Anderson et al 1994 found Customer Satisfaction to be fundamental indicator of firms’ performance as it has behavioral as well as financial consequences for the firm. Reichheld ans Sasser (1990) found that greater customer satisfaction reduces costs of future transactions. Anderson 1996 found that greater is the customer satisfaction lesser is the price elasticity Kim et al., (2004) found that the service quality positively affected customer satisfaction. He elaborated that call quality is the most important issue that influences customer satisfaction for mobile services. Customer satisfaction and switching barriers has positive impact on customer loyalty. Palkar (2004) studied the factors which determine the customers’ satisfaction and customer loyalty in mobile service market. He found that important determinants of these two are quality of service, price structure and value added services offered by the provider. Moreover, satisfied customers have a higher propensity to stay with their existing service provider than the less satisfied ones (Cronin et al., 2000) and are more likely to recommend the service provider to others, leading to improved bottom line for the company Reichheld (2003, 2006).
296
Mediating Effect Mediation is often useful for conceptualizing the relation among three or more variables as a way to explain the nature of the relation (Williamson and Schulz, 1995). A variable is defined as a mediating variable if it accounts for the relationship between two other variables (Baron & Kenny, 1986; MacKinnon, 1994). Mediation hypotheses are frequently tested in both basic and applied psychological research, and mediation analyses are most often guided by the procedures outlined by Baron and Kenny (1986). This study measures mediation effect through this method only. There are advanced and elaborate methods developed more recently (Sobel, 1990) and popularized through the work of McKinnon (1994), MacKinnon and Dwyer (1993), and MacKinnon, Lockwood, Hoffman, West, and Sheets (2002). Research Methodology Data Collection Data was collected from 140 mobile users of different companies using structured questionnaire with closed-ended questions as a response measurement tool. Research Instrument Design A structured questionnaire was developed and responses from customers were measured on 5- point Likert type scale. The questions in the scale were carefully chosen after thorough and extensive literature review Measurement Scale Service Quality was measured with help of 30 items mainly derived from the works of Caruana, (2002), Cronin, Brady and Hult (2000), Aydin and Ozer (2005), Kim et al. (2004), Lai et al. (2007) Customer Satisfaction was measured with the help of 5 item scale based on work of Hellier et al. (2003) Customer Perceived Value was measured with the help of 3 items based on work of Levesque & McDougall (1996) Following two hypotheses were proposed to meet the objectives of the study: H10: Customer Satisfaction is not impacted by service quality.
297
H20: The relationship between Service Quality and Customer satisfaction is not mediated by Customer Perceived Value. Data Analysis: Reliability Analysis was carried out for all the 3measurement scales with the help of SPSS which resulted in following output Reliability Statistics: Name of Variable Service Quality Customer Satisfaction Customer Perceived Value
Cronbach's Alpha .836 .798 .810
Number of Items 30 5 3
In all the cases value of Chronbach alfa was more than .7, the value suggested by Nunally (1978) as reference value. After carrying out Reliability test, Regression Analysis was carried out to test first hypothesis of study. Here Customer Satisfaction was taken as dependent variable and Service Quality as independent variable, the SPSS generated following output: Descriptive Statistics Std. Deviation 3.1000 .89201 4.1000 .84223
Mean CS SQ
N 140 140
Correlations CS Pearson Correlation Sig. (1-tailed)
CS SQ CS SQ CS SQ
N
Model
R
R Square
1.000 .695 . .000 140 140
1
Regression Residual Total
Model Summary Std. Error of the R Square Estimate Change .480 .64350 .483
Adjusted R Square
1 .695a .483 a. Predictors: (Constant), SQ
Model
SQ
Sum of Squares 53.456 57.144 110.600
ANOVAa df Mean Square 1 53.456 138 .414 139
298
.695 1.000 .000 . 140 140
Change Statistics F df1 df2 Sig. F Change Change 129.094 1 138 .000
F
Sig. 129.094
.000b
a. Dependent Variable: CS b. Predictors: (Constant), SQ
Model
1
(Constant) SQ
Coefficientsa Unstandardized Standardized Coefficients Coefficients B Std. Error Beta .081 .271 .736 .065 .695
t
.299 11.362
Sig.
.765 .000
a. Dependent Variable: CS
Among the above mentioned table ANOVA table shows that model is significant as pValue is less than .05. Model Summary shows that Service Quality explains 48.3% variance in customer satisfaction. Coefficient Table shows that Service Quality shows unstandardized beta value of 0.736 which is significant at 5% level of significance as p-value is less than 0.05. It means 1 unit increase in Service Quality will lead to 0.736 unit positive change in customer satisfaction in the absence of other variables. Hence above stated Null hypothesis is rejected and it can be concluded that Customer Satisfaction is impacted by Service Quality. Mediation Test: As suggested by Baron & Kenny, 1986 for testing Mediation effect of assumed Mediating variable, itis entered into regression test as independent variable along with previously entered first independent variable. If in the coefficient table output shows insignificant unstandardised beta for first independent variable i.e. no impact of first independent variable (which was significant in first regression test) and 2nd independent variable i.e. Mediating variable shows significant unstandardised beta i.e. significant impact on dependent variable along with clear cut improvement in value of R square in model summary- it means, there is Mediation effect. Now to test the 2nd Hypothesis, Customer Perceived Value was also eneterd as independent variable while previously entered Service Quality was retained as such. So in this model there were two independent variables namely SQ and CPV and one dependent variable i.e. CS. Multiple Regression through SPSS resulted into following output: Descriptive Statistics CS SQ CPV
Mean 3.1000 4.1000 2.3000
Std. Deviation .89201 .84223 .78383
N 140 140 140 Correlations
299
Pearson Correlation Sig. (1-tailed)
N
Model
R
CS SQ CPV CS SQ CPV CS SQ CPV
CS 1.000 .695 .893 . .000 .000 140 140 140
R Square
Adjusted R Square
SQ
Model Summary Std. Error of R Square the Change Estimate .40140 .800
1 .895a .800 .798 a. Predictors: (Constant), CPV, SQ Model
Sum of Squares 1 Regression 88.527 Residual 22.073 Total 110.600 a. Dependent Variable: CS b. Predictors: (Constant), CPV, SQ
CPV .695 1.000 .739 .000 . .000 140 140 140
df
.893 .739 1.000 .000 .000 . 140 140 140
Change Statistics F df1 df2 Change 274.727
ANOVAa Mean Square
2 137 139
F
44.263 .161
Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Std. Error Beta 1 (Constant) .575 .172 SQ .082 .060 .078 CPV .951 .064 .836 a. Dependent Variable: CS
2
Sig. F Change
137
.000
Sig.
274.727
t
.000b
Sig.
3.334 1.373 14.754
.001 .172 .000
ANOVA table shows that model is significant as p-value is less than 0.05. Model summary shows a drastic increase in value of R square which implies significant improvement in ability of the model to explain customer satisfaction. The value of R square in this model is .8 which means it can explain 80% variance in customer satisfaction. Careful examination of Coefficient table reveals that Service Quality is no longer significant as p value is.172 which is far above the desired value of .05. Its unstandardised beta value has also gone down to .082 which means that one-unit improvement in service quality will improve customer satisfaction by .082 unit.
300
On the other hand, CPV have unstandardised beta value of .951 which is significant also as p value is less than .05. It means a unit change in CPV will improve customer satisfaction by .951 unit. Thus it rejects 2nd null hypothesis. It establishes Mediating Role of Customer Perceived Value in Service QualityCustomer Satisfaction link. Conclusion Results of Data analysis shows that Service Quality is no doubt a cause behind Customer Satisfaction but when we tested mediation effect using Multiple Regression as suggested by Baron &Kenny it was found that Customer Perceived Value mediates the relationship between Service Quality and Customer Satisfaction. References Aydin, S. & Ozer, G. (2005), National customer satisfaction indices: An implementation in the Turkish mobile telephone market, Marketing Intelligenceand Planning, 23 (5), pp. 486 – 504. Baron, R. M., Kenny, D. A. (1986), The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations, Journal of Personality and Social Psychology, 51 (6), 1173–1182. Berry, L.L., Parasuraman, A. (1992), Prescription for a service quality revolution in America.Organizational Dynamics, 13(4/5), pp. 5-15 Bolton, R. N., & Drew, J. H. (1991), A multistage model of customers' assessments of service quality and value, Journal of consumer research, 375-384. Caruana, A. (2002), Service loyalty: The effects of service quality and the mediating role of customer satisfaction, European Journal of Marketing, 36(7/8), pp. 811-29. Cronin, Jr. J. J., Brady, M. K. &. Hult, G. T. M. (2000), Assessing the effects of quality, value and customer satisfaction on consumer behavioral intentions in service environments, Journal of Retailing, 76 (2), pp. 193-218 Hasenfeld, Y. & Richard A. (1974), Human Service Organizations: A Book of Readings, The University of Michigan Press. Holbrook, M. B. (1994), The nature of customer value: an axiology of services in the consumption experience. Service quality: New directions in theory and practice, 21, 21-71. Howat, G., Crilley, G. & McGrath, R. (2008), A focused service quality, benefits, overall satisfaction and loyalty model for public aquatic centres, Managing Leisure, Vol. 13, pp. 139-161. Kandampully, J. (2002), Innovation as the core competency of a service organisation: the role of technology, knowledge and networks, European Journal of Innovation Management, 5(1), 18-26. Kotler P.& Keller L., Marketing Management, 12th ed., Upper Saddler River, NJ: Prentice Hall: 2006
301
Ladhari, R. (2009). Service quality, emotional satisfaction, and behavioural intentions. Managing Service Quality, Vol. 19 No.3, pp. 308-331. Levesque, T., & McDougall, G. H.G. (1996), Determinants of customer satisfaction in retail banking, International Journal of Bank Marketing, 14, pp.12–20. Oliver, R. L. (1997), Satisfaction: A behavioral perspective on the customer. New York. Parasuraman, A., V. A. Zeithaml & Berry L. L. (1988), SERVQUAL: A Multiple item scale for measuring consumer perceptions of service quality, Journal ofRetailing, 64 (1), pp. 12 - 40. Parasuraman, A., Zeithmal, Valarie A., Berry, L. L. (1994), Reassessment of expectations as a comparison standard in measuring service quality: Implications for further research, Journal of Marketing, 58(1), pp. 111-125. Porter, M. E. (1996), Competitive advantage, agglomeration economies, and regional policy, International regional science review, 19(1-2), 85-90. Seth, N., Deshmukh, S. G. & Vrat, P. (2005), Service quality models: a review’, International Journal of Quality & Reliability Management, 22(9), pp. 913-949. Thomas, R.E. (1978), Strategy is different in service business. Harvard Business Review, 56(4), pp. 158-165. Zeithaml, V. A., Berry, L. L. and Parasuraman, A. (1996), The behavioral consequences of service quality, Journal of Marketing 60 (2): 31 – 47.
302
ANTECEDENTS TO CONSUMERS ETHNOCENTRISM: THE CASE OF COSMETICS IN GWALIOR Dr. Ruturaj Baber Dr. Rahul Pratap Singh Kaurav YaminiSapra Dr. Prerana Baber Abstract With the increase in exposure of imported products, the demand for imported items has been on steep climb. For the various organizations whether national or multinational, it has become extremely important to identify what prompts customers to buy the product other than its features. Sharma and Shimp (1985) developed the concept of consumer ethnocentrism and since it has been on rise. The present study data was collected from Gwalior and explores factors which contribute towards development of ethnocentrism. The research develops framework for antecedents of consumer ethnocentrism and through empirical testing a strong and positive relationship was discovered between proposed antecedents and CETSCALE recording consumer ethnocentrism. Introduction Consumer ethnocentrism means morality of purchasing foreign based products. International trade activity is become is becoming a central part of a world economy. And it is recognized that there is a greater necessity of consumer attitude towards the both foreign and domestic products. According to Klein, Ettenson, and Morries, 1998, the consumers’ judgement regarding products are often influenced by the countries the products. Consumer ethnocentrism is defining (Shimp and Sharma, 1987, p. 280) as “the beliefs held by consumers about appropriates, indeed morality, of purchasing foreignmade products.” Consumers who believe in ethnocentrism they purchase imported products and it results in cause loss of job, and hurt the domestic economy. According to Hamin and Elliott (2006), a common finding of many studies seemed to be that consumers from developed countries apply a higher or more positive rating to products from their own country or similar developed countries, than to produce from their own country or similarly developed countries, than to produce from foreign or less developed countries. Consumer ethnocentrism has been suggested as a means of differentiating consumers group who prefer domestic goods over imported goods. Consumer ethnocentrism can be defined as a consumer’s preference or domestically produced products, or conversely, as a bias against imported products (Sharma et al., 1995). Ethnocentrism consumers believe that buying foreign products hurts the domestic economy and national employment. Animosity refers to remnants of anticipate, or
303
hostility towards a country (Jimenez and San Martin, 2010: 34-45). Consumer ethnocentrism is positively related but distinct from consumer animosity. Klein and Ettensen (1999) suggest that consumer ethnocentrism contributes to a consumer’s propensity to avoid buying foreign products in general, while animosity is directed towards a specific country (Rose et al., 2008: 331). For Sumner (1906), the concept of ethnocentrism has a dual implication. On the one hand, the groups are naturally antagonistic among themselves and this, on the other hand, produces a series of feeling of loyalty among members of the same group and of rejection towards those of another group (Forbes, 1985). Adorno et al. (1950) relate ethnocentrism to provincialism and culture narrowness as a tendency to accept those that are culturally similar and reject those that are not. Consumer ethnocentrism was conceptualized as one of the components of a complex theoretical construct related to the cognitive, affective and normative orientation of the consumer towards products manufactures abroad. Shimp, (1984, p.285) explained the idea utilized here to speak to purchasers convictions in the prevalence they could call their own nations' items. The discernments are hypothesized to rise above insignificant monetary and useful contemplations, and rather to have a more respectable establishment established in profound quality. That is buyer ethnocentrism is planned to catch the idea that a few shoppers believe it is customers wrong to buy remote made items, on the grounds that it will hurt the local economy, cause the loss of occupations, and short, in light of the fact that from their perspective, it is doubtlessly unpatriotic. Review of literature Ethnocentrism means culturally-biased judgement. Ethnocentrism is a concept of interest not only to historians, psychologists, and anthropologists but also to historians, political scientist, political, and administrations. For this research it was expected that ethnocentrism is highly related the evaluation of foreign products, as illustrated by a preference for products from culturally similar countries over those from culturally dissimilar countries. The implications are probably of interest to all domestic manufacturers and foreign importers but they may not be applicable in all the industries. The focus of the research on the preference of non-ethnocentrism consumers also revealed little about the important of different attributes for non-ethnocentric consumer in the decision situation. Little is known as to what will influence the attributes and purchase preference of non-ethnocentrism consumers, making them different to predict. Therefore, we, must make sure to examine consumer decision making processes in detail- across different setting, location, people, and time. Shimp and Sharma (1987) had found those in the lower socio-economic group to be more ethnocentric than those higher up. They attributed this to the fear of losing jobs to foreign competitors. Regarding gender, the dominant view is that women will be more
304
consumer ethnocentric. A structure mode of the interrelationship among these three constructs is theoretically developed, empirically tested and validation. Household electronics and electrical goods were used as the product category in this study as this product category appeared to be very important to middle-class consumer in India. Caution should be exercised in generalizing as the result across all products categories, as the product category is a salient factor in the product country-of-origin assessments (Sharma, Shimo& shin, 1995). More ever they argue that consumer ethnocentrism is closely correlated to patriotism, political- economical conservation and dogmatism. Johanson et al. 1985; Shamra et al. 1995; Wall and Hoslop 1986, White 1979explained that ethnocentrism can be predicted that consumer will most likely have a negative influence on consumer’s attitudes towards products from country of origin. Some of the researchers said that the level of consumer ethnocentrism in a market is high foreign manufactures looking forward to expand in that market as well as domestic marketers’ distribution imported products will face a tough challenge. Consumer ethnocentrism implies the normative belief that purchasing domestic products is more beneficial than purchasing foreign goods. Research Methodology Development of the Instrument The instrument utilized to record responses for consumer ethnocentrism was adopted from Douglas and Nijssen (2002). The scale for antecedents of Holbrook and Schindler (1994) was utilized for recording the responses. The five point Likert type scale was utilized to record the responses where the anchors were ranging from strongly disagree to strongly agree. Sampling The population of the sample were all the cosmetic users in Gwalior. The population of Gwalior as per census, 2011 was 2032036 (www.census2011.com). The questionnaires were self-administered and were distributed at various stores located at different vicinities of Gwalior. The sample element was an individual cosmetic product users hailing from Gwalior region. Non-probability purposive sampling technique was utilized to collect the responses. Response Rate In this research, the data was collected from the customers using cosmetics Gwalior region, a city in Madhya Pradesh, India. The data was collected from the customers of cosmetic products. 200 questionnaires were distributed out of those 180 were returned and out of those 180 filled questionnaires 149 were found to be useful. This results in a response rate of nearly 75%.
305
Demographic Profile of the Customer Table 4.1: Age Valid
Frequency 95 48 6 149
18-34 35-45 46-60 Total
Percent 63.8 32.2 4.0 100.0
Valid Percent 63.8 32.2 4.0 100.0
Cumulative Percent 63.8 96.0 100.0
It is observed from table 4.1, 95 respondents were aged between 18-34 years. 48 respondents were aged between 35-45 years. 6 respondents were aged between 4660 years. Table 4.2: Gender Valid
Male Female Total
Frequency 86 63 149
Percent 57.7 42.3 100.0
Valid Percent 57.7 42.3 100.0
Cumulative Percent 57.7 100.0
It is observed from table 4.2, 86 respondents were males. 63 respondents were females. Table 4.3: Marital Status Frequency
Percent
Valid Percent
Valid Married Unmarried Total
21.5 78.5 100.0
21.5 78.5 100.0
32 117 149
Cumulative Percent 21.5 100.0
It is observed from table 4.3, 32 respondents were married. 117 respondents were unmarried. Table 4.4: Income/month
Valid
>15000 15001-35000 35001-50000 Total
Frequency
Percent
Valid Percent
66 80 3 149
44.3 53.7 2.0 100.0
44.3 53.7 2.0 100.0
Cumulative Percent 44.3 98.0 100.0
It is observed from table 4.4, 66 respondents were of income group less then. 80 respondents had income in 15001 to 35000 range and 3 respondents had income in 35,000-50,000 range. Table 4.5: Ethnic Group Frequency
Percent
306
Valid Percent
Cumulative
Valid
Hindu Muslim Christian Sikhs Total
136 11 1 1 149
91.3 7.4 .7 .7 100.0
91.3 7.4 .7 .7 100.0
Percent 91.3 98.7 99.3 100.0
It is observed from table 4.5, 136 respondents belonged to Hindu ethnicity. 11 respondents belonged to Muslim ethnicity. Both 1 respondent belonged to Christian and Sikh ethnicity. Reliability Statistics 4.6: Reliability Statistics Variable Antecedents CETSCALE
Cronbach's Alpha .814 .601
N of Items 20 10
It is observed from table 4.6 that antecedents to ethnocentrism’s reliability coefficient is 0.814, which is higher than 0.6 as stated to be acceptable requirement by Nunnally (1978). CETSCALE’s reliability coefficient is 0.601, which is just above the threshold of 0.6, as stated to be minimum acceptable range by Nunnally (1978). Thus making the dataset for antecedents and CETSCALE usable for further analysis Dimension Reduction This section of the chapter analyses the data and implements factor analysis on antecedents to ethnocentrism of consumer. Sample Adequacy Table 4.7: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.
.873 795.873 190 .000
The table 4.8 indicates that the KMO measure for the data is 0.873 significant at 0.000 levels and is adequate for further analysis. Principle Component Analysis of Antecedents to Consumer Ethnocentrism Principle Component Analysis (PCA) was applied on the responses filled in the questionnaire on antecedents to consumer ethnocentrism. PCA with Kaiser Normalization and Varimax Rotation converged into five factors which were named in the context of antecedents.
307
Table 4.8: Principle Component Analysis of Antecedents of Consumer Ethnocentrism Factor Percent Eigen Item Converged Factor Variance Values Loading Patriotism 14.302 2.860 India has a strong historical heritage. 0.660 I would like to respect the cultural norms of India 0.672 I would like to respect the social order of India 0.617 I believe India can achieve its development targets 0.546 in near future I would like to respect the traditions of India 0.486 The brands I believe as good for me are so 0.454 completely true, I could never doubt about them Cultural 11.710 An Indian possesses certain cultural attributes 0.663 Affinity that other people do not possess Indians are proud of their nationality 0.622 I believe current economic growth of India is at 0.558 satisfactory level Affinity to 10.946 2.189 I consider labels of local brands (e.g. Tiger logo) in 0.689 History purchasing decisions I feel India economy is improving after 0.663 independence Important people from the country's past are 0.566 admired by people today. National 10.341 2.068 I'd be happier if I could afford to buy more things. 0.612 Heritage A specific religious philosophy is what makes a person uniquely Indian. 0.574 I believe national security is most important aspect of the country 0.503 Inclination 8.716 1.743 I admire people who own expensive homes, cars, 0.864 Towards and clothes. Luxuries I like to live a luxurious life 0.764
Testing of Hypotheses This section of the research article examines the hypotheses proposed on the basis of factors derived as antecedents. Multiple Linear regression was utilized to establish the causal relationship between factors affecting consumer ethnocentrism and its derived antecedents. Following are the proposed hypotheses: H1 Patriotism significantly affects consumer ethnocentrism H2 Cultural affinity significantly affects consumer ethnocentrism H3 Affinity to history significantly affects consumer ethnocentrism H4 National heritage significantly affects consumer ethnocentrism H5 Inclination towards Luxuries significantly affects consumer ethnocentrism
308
The effect of antecedents on consumer ethnocentrism towards cosmetic products on is examined through 4.9, 4.10 and 4.11. These tables exhibit the statistical inferences made from the collected data. It is indicated from the table 4.9 and 4.10 that antecedents of ethnocentrism account for 81.2% of variance on consumer ethnocentrism towards consumers of cosmetic products in Madhya Pradesh (R2=0.812, ΔR2:0.806, F(5,144) =124.492,p5L
24 3 11 15 16
51.1% 93.6% 23.4% 31.9% 37.2%
The above table indicates the demographic profile of the respondents. Studying the demographics clearly indicates that the respondents for the present study were exclusively from the academic background and were more inclined towards the formal learning in the form of a workshop. The statistics of the gender states the ideal representation of the categories that aged between 22 years to 47 years of age which includes the students, academicians as well as the self employed. The marital status indicates that attending academic supplement programme is crucial for the professional development and hence the marital status may not alter the decision of attendance as the data states almost equal participation by the categories. Consideringthe profile of the respondents the income level indicates that there was a equal spread of respondents over the categories and 5 respondents who make up 10.6% of the respondents didn’t contribute for the data stating income level Measure of Reliability The table suggests the reliability statistics of the scales used in the study. The test of reliability had the cronbach’s Alpha Value of .705 which is acceptable for the self designed questionnaire and the value is also the result of the limited questions on a specific dimension so as to understand the travel and tourism factors which affects the decision of attending professional development programmes by the academic fraternity. Table 2: Cronbach’s Alpha reliability statistics for the scale data Criteria affecting the attendance
Cronbach's Alpha .705
N of Items 8
Purpose of attending Professional Development Programmes Post the demographic study and the reliability test, the other purpose of attending professional development programmes was investigated using the descriptive statics. The respondents were asked to rank the purpose in a descending fashion. Table 3: Ranking the purpose of attending the professional development programme
407
The above table illustrates the descriptive statistics for the data which enables to rank the purpose of visiting the professional development programmes. It can be clearly stated that the very first purpose of attending the programmes by the academic fraternity was Academic Achievement which facilitates in gaining API (Academic Perfomance Indicator) scoring which an accepted indicator, laid down by UGC. Attending the programmes shall make a notable impact on the career which might make way to step up the ladder of professional advancement. The programme design was ranked two by the respondents which will significantly affect the decision of attending the programme. The objective, content and the way it is executed make up the programme design. Resource Person was ranked third by the respondents, which indeed is an important motivator for the one to take part in such educating event. No matter how well the programme is designed by whom it is delivered is a cliché. The purpose of Networking has been ranked fourth by the respondents and needs no clarification for its importance. Having the right environment and learning with the like minded will further supplement the programmes. Nevertheless, the Organizer of the Professional development programmes has been ranked fifth and the possibilities of indulging oneself in the tourism and travel activities has been ranked sixth. As the purpose was to understand positioning of travel and tourism factors among the other significant academically inclined purposes, the study shows that extent of the role played by the travel and tourism factors is secondary in deciding to attend such serious learning programmes, where the rigorours training so as to gain and polish the skills less known is uplifted by the majority. Yet a closer investigation reveals that 40% of the 408
respondents have ranked Tourism and Travel sixth, 12.8% respondents have ranked it fifth, 8.5% have ranked it fourth, 10.6% have ranked it Third, other 12.8% of the respondents have ranked it second and the rest 14.9% is not a stat to be ignored have ranked travel and tourism as their primary purpose of attending professional development programme.This in turn will assist in comprehending the significance of travel and tourism factors in the academically important programmes. Assessing the need of leisure and tourism activities As the data has communicated the essence of what the prospective attendees of such academically important Professional Development Programme look, the need of leisure and tourism activities in specific will further improvise the understanding. Table 4: Assessing the attitude of participants towards leisure and tourism activities as a supplement. Mean Leisure/ travel activity as supplement
3.38
Std. Deviation 1.226
The above table refers to the mean attitudeof the participants towards having leisure and tourism activities as a supplement for the professional development programme. The results reveal that the mean of the responses is 3.38 with a SD of 1.226 that would lie between ‘Neutral’ and ‘Agree’ on a five-point scale at 95% level of confidence as the further detailing of the results show that 19.1% respondent strongly want the leisure nd tourism activities as part of the programme while the other 34% respondents agree for the same and the rest 21.3% respondents are at a neutral. This leads to a thought that if the tourism and leisure programmes are made part of the programme and are informed well, it might interest the rest of the 20.5% respondents. The geographical location choice of the event would influence this need of undertaking leisure and tourism activities. (Table 5) Table 5: Assessing the effect of geographical location Mean geographical location matters
Std. Deviation 3.91
1.125
The above table supports the assumption of geographical location where the programme is hosted will have an impact on the decision of attendance. The mean of the responses is 3.91 with a SD of 1.226 that would lie between more closely to ‘agree’ on a five-point scale at 95% level of confidence. This is undeniable as the closer look at the descriptive state that 31.9% of the respondents strongly agree and 42.6% of the respondents agree who constitute a major section of the pie while the rest range from neutral to disagree where the respondents are of the opinion that the geographical location hardly matters to them if the programme itself is appealing and fulfilling. The choice of location can also impact on the length of stay of the attendees. As the 409
respondents opined that location might make 27.7% of them to stay back and indulge in leisure activities. Travel pattern The study also intended to understand the travel pattern of the participants belonging to different category of occupation who attend the professional development programmes. The study was conducted to have an understanding of the respondents’ choice of travelling alone or with the group to such events. Table 6: Attitude of the respondents towards travel pattern individually occupation level of respondents
academics student entrepreneur others
25.5% 14.9% 0 2.1% 42.6%
Total
wish to travel with group with family 25.5% 0 23.4% 2.1% 2.1% 0 2.1% 0 53.1% 2.1%
Not sure 0 2.1% 0 0 2.1%
The above table disseminates the results of the study conducted to analyse the attitude of the respondents towards their choice of travelling. 53%the respondents wish to travel more likely with a like minded group of their colleagues and friends which will enhance the learning objective and the other significant 42.6% of the respondents would like to travel individually where the purpose of learning will be placed first than that of with whom are they travelling with. A very small part i.e 2.1% of the respondents would like to be accompanied by their families and the rest 2.1% are unsure about their choice. Considering the job profile of the respondents the study shows that the academic fraternity would more likely choose to be travelling individually as well as with the group with the same thrust as each of the choice has been chosen by the 25.5% of the academicians. The 23.4% students or the research scholars would like to be in a group to attend the programmes and other 14.9% would not take a step back to travel individually. Thus both the major categories of attendees’ choices may help the organizers in planning out the programme so as to meet their needs. Informed traveler The study was conducted to examine how informed the attendees are about the place they are travelling and will they devote time to have a glimpse ofthe history and significance of the place. Table 7: attitude of the respondents towards reading about the place
410
Response Yes No Total
Percent 74.5 25.5 100.0
The table above clarifies the results of how well informed the respondents are about the place. As the numbers of informed travelers are increasing across the globe according to the various research sources, the same can be sensed here as almost 74.5% of the respondents read about the local history, culture, place of interest and the other possibilities of recreational facilities. The rest 25.5% of the respondents opined that they don’t sensitize themselves with the place they are about to visit instead they would like to experience the place at the first hand and try to know about the place from the locals. Findings The SMERF (Social, Military, Educational, Religious and Fraternal) buyers of the meetings industry have been categorized by their own virtue. The study thus supports the early stated characteristics while highlighting the widened scope for the organizers and the event marketers to take care of. Being an effort to understand the probable pattern of travel behaviour and attitude, the study has positioned the purposes of visiting the professional development programmes against the purpose of Tourism and travel. The needs of the leisure and tourism activities as part of these programmes are assessed. The study does states that the geographical location of the event does matter to the prospective attendees and at last narrates the travel pattern of the respondents of the academically important professional development programmes. References Abbott, S. (Ed.). (2014, August). Hidden curriculum. The glossary of education reform . Retrieved August 2015, from http://edglossary.org/hidden-curriculum Bodger, D. (1998). Leisure Learning and Travel. The Journal of hysical Education, Recreation and Dance , 2-5. Brent, W., Ritchie, Carr, N., P, C., & Cooper. (2003). Managing Educational Tourism. Clevedon,U.K: Channel View Publications. Davidson, R., & Rogers, T. (2006). Marketing Destinations and Venues for Coferences, Conventions and Business Events. UK.USA: Butterworth-Heinemann Elsevier Ltd. Getz, D. (2007). Theory, Research and Policy for Planned Events. UK.USA: Butterworth-Heinemann Elsevier Ltd. MHRD. (2015). Ministry http://mhrd.gov.in/
of
Human
Resource
Development.
Retrieved
August
2015,
from
Patterson. (2006). Growing Older- Tourism and Leisure Behaviour of Older Adults . London.Washington D.C.: CAB International.
411
Silvers, J. R. (2008). Risk Management for Meetings and Events. Oxford,U.K.: Elsevier Ltd. Springer. (2012). The Economics of Tourrism http://www.springer.com/978-3-642-20873-7
Destinations.
Retrieved
August
2015,
from
UNWTO. (2005). Conclusions of the International Seminar on MICE Tourism and Business Tourism. Geneva: UNWTO.
412
A CASE STUDY OF AGRI-TOURISM IN INDIA Lt (DR.) Saurabh Dixit, Mr. Amit Tiwari, Mr. C. S. Barua, Dr. Charu Sheela Yadav Abstract Present paper on Agri-tourism in India is focussed on present status of agri-tourism in the country. It covers product and services including factors to be kept in mind while designing and implementing agri-tourism business. Types of activities are also covered in the paper. Paper covers practical examples about agri-tourism in India. SWOT analysis of Agri-tourism ventures gives basic idea about pros and cons of agri-tourism as a business. Key words: Dhani – Bhootra- smallest conglomeration of huts in villages of Rajasthan, Responsible Tourism, Rush and crush, Multiplier effect Overview Almost 75% India’s is dependent on agriculture. Size of average land holding is small i.e. just 2.3 hectres. It is a result of fragmentation. To make such small land profitable intensive methods are required. The government of India has taken many steps to improve condition of farmers. Efforts taken by government brought about the Green Revolution in India in 1960s. India became self-sufficient in the production of food crops. (Getting Ahead in Social Science with CCE, Orient Black Swan, New Delhi, 2010, ISBN-978-81-250-4125-2)population About 70% of World poor live in villages. Agricultural land is depleting and degrading. Agriculture is the main source of livelihood in India. (http://data.worldbank.org/topic/agriculture-and-ruraldevelopment accessed on 11th July’2015) Village is a socio-economic unit. Agriculture is base of economy in India. Majority of population live in villages. In India, culture, traditions are initiated from villages. You feel fresh when you hear folklore and natural sounds on the country side. India has many regions known for its nature based life style. Festivals are also associated with agriculture cycle. Lohri, Holi, Onam, Pongal etc. are celebrated after the crop. There is 72.2% population of the country lived in 638,000 villages in India. (2001 census).6.97 million Tourists arrived in India in 2013. Domestic tourists were manifolds i.e. 1145 million (2013).
413
(http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/Incredib le%20India%20final%2021-7-2014%20english.pdf accessed on 11th july’2015) Tourism is associated with travel.
Source: google images The history of agro-tourism dates back to the late 1800’s when people began leaving the city to come to farms to visit relatives for short stays to escape the city life.In the 1980’s and 1990’s, farm vacations, overnight stays at bed and breakfasts, and commercial farm tours became popular. Today, the demand continues to grow for agri-tourism. Tourism in India When we travel away from our place of usual stay and accommodates in commercial establishment, we are tourists. We do not keep refugees, war victims, employees in this category. Tourism has long term impact on the economy. Tourism is considered as a tool to earn foreign exchange, generate and uplift income of people in the third world countries. India is a country of unity in diversity.GDP from agriculture decreased to 4152.28 INR (2015) in first quarter of 2015. (http://www.tradingeconomics.com/india/gdp-fromagriculture accessed on 10th July’2015).Its population is 1.252 billion (2013).Tourist’s arrival in India is a main factor which tells us about the market size of tourism.
Soul of India lives in villages. Mahatma Gandhi
414
Country with agriculture based economy Population live in villages Majority of NIR’s from agroculture based state.
• Wards to see the place • Farm tourism
Varioan in agri-culture • Step in hills • Large farms in Ounjab
saurabh dixit www.drdixit.webs.com
7/11/2015
17
Agri-Tourism (AT)
‘‘Tourism activities which are undertaken in nonurban regions by individuals whose main employment is in the primary or secondary sector of the economy’’ Iakovidou (1997). ‘‘Provision of touristic opportunities on working farms...’’ Wall (2000)
It is a holiday concept to visit a working farm, agriculture, horticulture, agri-businesss preparation site for enjoyment, education or learning purpose. th (www.baramatiagrotourim.comon 10 July’2015). It has different practical meanings in different parts of the world. It is also popular by the name farm stays. Involve any agriculturally based operation which brings tourists to a farm is known as agri-tourism.
415
Punjab Govt. Launched farm tourism scheme in 2008. (The Indian Express, 23/12/2008) Responsible tourism in Kerala connects tourists to village. (Times of India, 20/12/2014) It is a small scale, low impact, education focussed. Opportunities for uniqueness and customisation are limited.It requires small farm crew. It involves farm tour, bread and breakfast, tractor/ bullock cart ride, grapes, mangos and other horticulture farms, bye product farm, bird/ animal zoo, and many other activities with small investment. Agri- Tourism is the Holidays concept of visiting a working farm or any agricultural, agribusiness or field of horticulturaloperations for the purpose of recreation, education, or active involvement in the activities of the farm or operation. It the practice of attracting tourists or travellers to an area used primarily for agricultural purposes. Agri-Tourism is small-scale, low-impact, and, in most cases, education-focused. Owners operate the farms in Maharasthra, Karnataka, Punjab. Opportunities for uniqueness and customization are limitless. Products and Services According to the Indian Express a leading news paper of India, 40% households are dependent on farming. (Indian express, 22/12/2014). There are many organisations in this area. Agri-tourism world has floated plan your trip campaign. (http://www.agritourismworld.com/ 10th July’2015).Product is bunch of tangible or intangible items which we offer to the customer. Agri-tourism offers a product which includes accommodation, food, and activity at some cost. Product offered by business operator is limited only by his or her own creativity and innovations. There are major components/ elements in the agri-tourism product. These are: 1. 2. 3. 4.
Lodging and camping Bed and breakfast Camp sites (e.g. adventure, leisure, nature, Youth camp etc.) Vacationers (farm stays, cow mulching, feeding fruit/vegetables) 5. Day trips/picnics/ excursions 6. Weddings, receptions, honeymoons 7. Special events, fair and festivals 8. Music festivals 9. Holiday, special occasion celebrations 10. Harvest festivals e.g. Baishakhi, Onam, Holi etc. 11. Rural Festivals/ Jatra 12. Camping/picnicking 13. Wagon rides
416
animals,
picking
14. Garden/nursery tours 15. Winery tours 16. Agricultural exhibits 17. On farm sales 18. Roadside stand 19. Agriculture related crafts 20. Horse riding 21. Guided Crop Tours 22. Hiking Trails 23. Farmer’s Market 24. Sheep Shearing. 25. Wool Processing 26. Fishing 27. Camel Safari in Rajasthan 28. Adventure Tours in Himachal Pradesh Products offered in packaged form are also getting popular in India. These packages have advantages of being cost effective, standard and having brand value. These packages are:
Farm Tour Packages o Malegaon, Baramati, katewadi Arya Baug in Maharastra (India)-day tour1200 INReconomy (http://www.maharashtratourism.gov.in/mtdc/html/maharashtratouris m/mahabhraman/Agriculture/Agri_Tourism.html accessed on 11th July;’2015) Adventure Sports packages in Himachal Pradesh, Uttarakhand, Jammu and kashmere Heritage- Dwaraka Krishna Tourism in Gujrat Wine yards near Nasik in Maharastra (http://hachikotourism.in/ accessed on 11th July’2015)
Elements of agri-tourism packages Culture Soul of Indian culture is vanishing fast. Village is the place where you can feel native Indian culture in its purest form. Meet andgreet people. Enjoy Indian food like: chapatti dipped in ghee with Indian curry. Makke Di Roti with Sarso da saag. The concept of village cot surfing created by Mr. Vpin Goyal. Tribes
417
There is villages near Keonghar District in Odisha are habituated by ancient tribes still living in natural way. Food People visit villages of Rajasthan to see their culture and have Rajsthani food.People visit rural places to move away from rush and crush. Places a. Mutthuga, District- Shimoga in Karnataka state ( http://connectfarmer.com/tourism-directory/1788/stay-matthuga/ accessed on 09th July’2015) b. Chincholi, Pune c. Nasik, Maharastra d. Haryana e. Punjab f. Karnataka g. Uttarakhand Impact of AT There is long lasting impact of village tourism on people and place. Do not surprise if you are visiting a village in Shekhawati in Rajsthan and finding him talking to you in your language. Villagers offer home stays and cook continental food in Goa. Analysing agri-tourism I have indentified 10 variables and tried to analyse (using SWOT analysis) agri-tourism in India. Variables are given below: Strength Weaknesses 1. Low cost 1. 2. Poor Infrastructure 5. 2. Simple product 3. Quality Service 3. Involvement of locals 4. Skilled Manpower 4. Increasing literacy i.e. Each one teaches one Opportunities Threats 1. Changing trend 1. 2. Reach 5. 2. Corporate’ interest 3. Response (late) 3. Unexplored 4. Natural/ climatic i.e. Tsunami, 4. Rapid construction in Flood in Asam Urban India Majorly agri-tourism activities require only a small farm crew, marketers in order to be successful. These activities may be operated with little investment in labour. Human 418
resources (HR) is an active component of agri-tourism. There are many issues related to human resources in context with Indian agri-tourism industry. Human Resources 1. Education and Training There is need to educate and train people working with this sector. More attention is expected by farmers and front end staff. Training programmes must relate with customer service, presentation, product development, communication skills. Opportunity Analysis for Farm-Based Businesses study provides a good base to design programmes. A council should coordinate with local Industry Institute’s professionals to find out whether the existing manuals and training programs from Indian Institute of Tourism and TravelManagement (IITTM) / Institute if Hotel Management (IHMs)/ Federation of Hotel and Restaurants association of India (FHRAI) Training Institute that might be adaptable to Indian agri-tourism industry.
Source: Google images Manpower is an active component of Tourism Industry. There are more than 60 universities are running tourism courses in India. One national level institute has been operating from five places i.e. north, west, east, and south part of the country. There is facility to get Ph.D. in Tourism and Hospitality. More than 50 IHMs (Institute of Hotel Management) are running Hotel and Hospitality Management courses. Government of India has been training people through these institutes. Programmes for common man are: a. Hunar Se Rozgar Tak Young metric pass students are given training in skilled areas. They learn travel assistant, housekeeping, cooking jobs. b. Capacity Building for Services Providers (CBSP) 419
Many personnel are trained in this programme. These are Tourist Police, Forest Department, Railways, Taxi Drivers, Hotel Staff, Immigrant officers. c. Marco-Polo (MP) IITTM invited and trained students from Asia pacific countries. They were also given exposure to tourist places, rural areas, Yoga. d. DONER It is for students from north east states of India. Students are trained free of cost. They are also helped to get job.
2. To initiate quality control Tourists visiting farms are also concerned with getting good value for their money. It is important to go for the high quality that can be delivered. This should happen on a consistent basis. The challenges facing the agri-tourism industry with respect to the delivery of a quality products and service are:
Information on tourist’s expectations of agri-tourism product quality. Awareness of the benefits of meeting expectations for quality standards. Awareness of pricing and its relationship with quality standards. To find gap between service delivery and expectations
For agri-tourism to be credible, efforts should be placed on developing a quality standards based system. These are standards which should guide general business requirements (i.e. meeting health and hygiene standards) and relate to customer service. Several of tourism businesses have developed various “Codes of Conduct” which are promoted by Ministry of Tourism, Govt. Of India and state tourism development corporations, Indian Association of Tour Operators (IATO) and Travel Agents Association of India (TAAI). These voluntary guidelines provide examples of operating principles which could be adapted by agri-tourism operators. Ministry of Tourism (MOT), Govt. Of India(GOI) offers opportunities for tourism related businesses to attain recognized quality product standards. Keeping in mind, MOT, GOI started campaigns like “Atiti Devo Bhava”, ‘Incredible India’, “Har Ghar Kucch Kehata hei” program. MOT also approved bed and breakfast accommodation guide program provides a standard for quality control of accommodation facilities. Quality control occurs in many ways. The key to ensuring the effectiveness of this initiative is training and awareness of what constitutes a quality product.
420
The council in association with agri-tourism operators should develop a code of conduct of agri-tourism. An industry based assessment program to audit quality of on-site safety and health activities on farms could also be developed. 3. To come out with partnership options Partnership options with state and other industry stakeholders will encourage farmers to come out with new products. 1. Marketing programmes Aggressive marketing pays more pennies. Surajkund Mela is a good example of aggressive marketing. People from New Delhi flock around Surajkund and spend money as they find it good time spending activity. 2. Participation of locals Local’s participation in decisions making will help to come out with a number of useful results. 3. Integrated networking Networking of farm owner will help them to market their product and come out with understanding to innovate their services. 4. Develop Thematic Images of Indian Farm Experiences The creation of a worldwide image of Indian agri-tourism experiences will help strengthen growth opportunities and provide new marketing avenues. Such an approach was successful for other tourism sectors including Incredible India, Kerala Tourism, Goa Tourism, etc; specific to agri-tourism, the Maharashtra and Punjab has been successful in increasing the awareness of its farm touring experiences. There are other examples in wine tourism destinations (e.g. Nasik) where the focus has gradually shifted from centering on wine production techniques to an emphasis on wine tourism experiences that combine visits to wineries and vineyards with a broader range of tourism products and services. This image building can also incorporate the value-added processing activities. The emphasis on the opportunity to see the processing of farm produce and to purchase these products on the farm complements the farm touring experience. Therefore, both agri-tourism opportunities should be included in the development of image. 5. Conflict While agri-tourism can create benefits for farm houses and tourism operators, it can also increase the chances of conflict between primary farming pursuits and more leisure travel activities. Planning for controversial issues and the 421
expectations of guests can lessen the potential conflict between the working farm and the visitors. These conflicts may relate to issues of rush and crush vandalism. It is important to establish communication strategies on what should be expected on-site with respect to the character of the agri-tourism experience. With a heightened public awareness of the potential dangers of animal disease dissemination by farm visitors; it becomes imperative to safeguard tourists from coming in close proximity of animals. This includes visits by school field trips, rural tours and conferences. Farms, parks, zoos, horse racing venues, rural footpaths, and rural heritage attractions, have been prohibited from visitors or are under quarantine in order to reduce the risk of any further spread of deseases like BIRD FLU. 6. Manpower planning of Agri-tourism It is necessary to identify people for agri-tourism. Few instincts suitable for a professional are: 1. 2. 3. 4.
Pleasing Personality Find out their goals in professional life Do market survey Estimate time and manpower need analysis
You may pose following questions before decision making: Before Starting a venture in Agro-tourism, one must ask below mentioned questions to himself. Q. Are you the type individual who would enjoy agro-tourism? Q. Are you a good communicator? Q. Are you patient? Q. Are you organized? Q. Can you adapt to change? If answers of most of these questions are yes, then you are suitable for a venture in Agro-tourism. You may also chart out your suitability for the project by thinking over following points: What are your dreams for your agro-tourism venture? What do you hope to accomplish by opening this business? Are you interested in making a supplemental income, if so, how much money will you need? If you are not interested in supplemental income, are you aware of the cost involved in launching this venture and can you support it from your own funds? 422
Within what time period do you expect to open your operation? Once you decide, put your goals in writing. Do a Market Analysis Hire a Market Firm Do it your Self Take help of Data available
153 rural tourism projects have been sanctioned by MOT, GOI in 28 states/ UTs including 36 rural sites where UNDP has helped for capacity building
Challenges
Source: google images There are many challenges in this area. It is difficult to market the concept of agritourism and liaison with the producer at the same time. Few selectedchallenges are: 1. Tourism Plant Facilities Tourism Plant Facilities are still not developed in the country. Dominating states are Maharastra, Punjab. Punjab has got more farm houses and more number of people settled in UK, Canada and USA. Wards of NRI visit Punjab to live in their roots. So, there is a channel and tourism plant facilities (TPF) will pick up in the future. Maharastra Tourism has started Agri-tourism packages. 2. Accessibility How good agri-tourism destination is connected is the secret of success. Indian has good road network. Govt. is planning to strengthen rural places to connect by road. Good accessibility helps to reach them. Villages near Delhi, in Haryana are doing well due to accessibility.
423
3. Accommodation Accommodation is an important part of agri-tourism. It is a real challenge to develop accommodation in villages, where you cannot come out with five star properties. You cannot construct many resorts. Garhwal (region in north India) has developed one room in each house of the village for tourists coming and staying in their villages. They call it volunteer tourism. 4. Manpower We have already discussed manpower in previous section. 5. Safety and Security Safety and Security is an essential variable to develop tourism. States of India like: Himachal Pradesh, Uttarakhand, Maharastra are very safe and secure.
6. Communication India’s communication network is developing very fast. Mobile penetration is about 90% in four metro cities. Telecomcompanies are now eyeing towards rural areas. National Forms of AT service provider Bharat Sanchar Nigam Limited (BSNL) has presence in all villages in the country.
Agri-tourism Farm tourism Volunteer tourism Help Tourism Village Tourism Responsible Tourism
7. Shopping There is a great scope of hand made products in villages in India. There is demand of patch work (Pipli, Odisha, India), silk clothes (inChanderi, India). 8. Awareness
Related terms
Rural tourism
It is a big challenge in India to create awareness among people in rural areas. Government has come out with incredible India campaign to create awareness. Celebrities are endorsing a message of responsible tourism in India.
424
Source: google images Agro-tourism Opportunities in India Growing tourism industry in India Increasing number of tourists preferring non-urban tourist spots. More Funds in Five Year Plans
Future of Agri-Tourism in India Agri-tourism will develop in future. There will be more packages for tourists coming from other places. Chokhi Dhani in Jaipur created replica of Rajasthan villages in Jaipur (capital of Rajasthan). Village offering cots. References Retrieved from http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/Incredible%20India%20fin al%2021-7-2014%20english.pdf on 11th July’2015
425
Retrieved fromhttp://data.worldbank.org/topic/agriculture-and-rural-development accessed on 11th July’2015 Retrieved fromhttp://articles.economictimes.indiatimes.com/2012-0504/news/31559329_1_rural-areas-mpce-nsso-survey accessed on 11th July’2015 Retrieved from https://www.opendemocracy.net/openindia/stuart-weir/basic-incometransforming-lives-in-rural-india on 11th July’2015 Retrieved from http://www.agritourismworld.com/ 10th July’2015 Retrieved from http://www.maharashtratourism.gov.in/mtdc/html/maharashtratourism/mahabhraman/Agriculture /Agri_Tourism.htmlaccessed on 11th July;’2015 Retrieved from http://hachikotourism.in/ accessed on 11th July’2015 Retrieved from http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/Incredible%20India%20fin al%2021-7-2014%20english.pdf accessed on 11th july’2015 Retrieved from http://connectfarmer.com/tourism-directory/1788/stay-matthuga/ accessed on 09th July’2015
426
MARKETING THE HERITAGE AND CULTURE OF MYSTICAL 64 YOGINI SHRINE OF HIRAPUR: A LITERATURE REVIEW & RESEARCH AGENDA Indrani Pradhan Ankita Mishra Abstract Heritage tourism encompasses elements of living culture, history, and natural history of placethat community’s value and steward for the future. These elements are very specific to a communityor region and can contribute to pride, stability, growth, and economic development.Heritage and culture are especially critical in rural settings.This paper primarily focuses on the marketing of the tangible and intangible heritage and culture of Hirapur village’s 64 Yogini Shrine. The 64 Yogini Shrines in Odisha provide a glimpse into the religious sand occult practices from the medieval times that are still alive in Odisha's tribal traditions and folklore.Built during the 9th century to harness the supernatural powers, only four of the architecturally distinct 64 Yogini Shrines survive in India today. Two of the temples are in Odisha at Hirapur near Bhubaneswar (15 km), and the twin villages of Ranipur and Jharial. The other two 64 Yogini Shrines are present in Khajuraho and Jabalpur in Madhya Pradesh. Though the Yogini cult failed in its attempts to popularize their occult practices through India, they are deeply enshrined in the minds and the folklore of Odisha. This Paper aims to describe and analyze academic literature, research Papers and the internet blogs addressing the social and economic value of culture and heritage, in order to allow the other researchers to identify relevant arguments, current theoretical approaches and also expertise in this field. Keywords: Heritage Marketing, Culture Tourism, Heritage Tourism, 64 Yogini temples Introduction World’s leading category of international trade, tourism, is increasingly offering arange ofcultural heritage products, from visiting monuments to discovering unique ways of life assupply for increasing cultural and heritage tourism demand. UNESCO defines culture tourismas “to create a discerning type of tourism that takes account of other people’s cultures” (UNESCO, 2005). Indeed, culture and heritage tourism has been gaining importance recentlyNot only for its economic gains but due to more sustainable approaches. As rural and regional economies gothrough difficult times of change, it may seem to some local communities that heritage can help in terms of economical gains.
427
Cultural tourism can be defined as the subset of tourism concerned with a country or region's culture and its customs. Cultural tourism generally focuses on communities who have unique customs, unique form of art and different social practices, which basically distinguishes it from other types/forms of culture. Cultural tourism includes tourism in urban areas, particularly historic or large cities and their cultural facilities such as museums and theatres. It can also include tourism in rural areas showcasing the traditions of indigenous cultural communities (i.e. festivals, rituals), and their values and lifestyles. Preserving cultural heritage appears to be a key factor in economic policies supporting tourism development. Cultural Heritage Tourism There is no singular, specific definition of either cultural or heritage tourism.Some call itcultural tourism, some heritage tourism, some cultural& heritage tourism or shortly culturalheritage tourism (Cultural & Heritage Tourism Alliance, 2002). Culture is a set of distinctiveSpiritual, material, intellectual and emotional features of society or a social group. It encompasses, in addition to art and literature, lifestyles, ways of living together, valuessystems, traditions and beliefs (UNESCO, 2001). The National Trust’s definition of cultural heritage tourism is “traveling to experience the places and activities that authentically represent the stories and people of the past and present. It includes historic, cultural and natural resources" (Cultural Heritage Tourism, 2005). Cultural Heritage can be identified as the ways of living, developed by a community and passed on from generation to generation, which includes the customs, practices, places, objects, artistic expressions and values. Cultural Heritage can either be Intangible or Tangible Cultural Heritage (ICOMOS, 2002). The cultural heritage includes both tangible goods and the intangible goods, like symbols and values, as relevant elements that contribute to an expression of community and individual identity that is both territorially and historically contextualized (Montella, 2009a, 2009b, 2012, Barile, Montella& saviano, 2011). Cultural Heritage can be distinguished as below: Built Environment (Buildings, Townscapes, Archaeological remains)
Natural Environment (Rural landscapes, Coasts and shorelines, Agricultural heritage) Artifacts (Books & Documents, Objects, Pictures)
Hirapur A home to 64 Yogini or Mahamaya temple, Hirapur is situated on the outskirts (15 kilometers southeast) of Bhubaneshwar, Odisha's capital. The 64 yogini temple, which is also known as the Mahamaya temple, marks the mystic character of the female deities. The temple, which reflects the role of feminine power in the religious practices 428
of Odisha, has the chief female deity, Mahamaya wrapped up in red clothes and vermilion, while the others in skirts held by an ornate girdle worn low on the hips. All the 64 yoginis have been depicted wearing necklaces, garlands, armlets, bangles, anklets, earrings and other ornaments. Likewwise, some of the Yoginis of the temple have also been portrayed as huntresses with bows and arrows, whereas others balancing on a pair of wheels, or playing a drum. These deities ofthe smallest yogini temple in India are still worshipped by the locals of Hirapur. 64 Yoginis of Hirapur There are four major extant "sixty-four yogini" temples in India, two in Odisha and two in Madhya Pradesh. One of the most impressive yogini temples in Odisha is the 9th century CE hypaethral Chausathi yogini (sixty-four yogini) temple located at Hirapur in Khurda district, 15 km south of Bhubaneshwar. The Yogini Temple at Hirapur, also known as the “Mahamaya Temple”, has an ambiance that is quite charged. The temple conveys an impression of the overwhelming power of its sixty-four Yoginis. Mahamaya, the presiding deity of the temple is found adorned with red cloth and vermilion. The deity is still worshiped by the local villagers. The Hirapur Temple is the smallest of the Yogini temples in India. The iconographic programme of the temple in Hirapur illustrates diversity and includes a wide variety of yogini images. Built around the year 900, this yogini temple is the oldest out of the four yogini temples currently present in India. The 64 Yogini Shrine at Hirapur was built under the aegis of Bhauma and Somavamsi rulers of Orissa and is the smallest in the group. Constructed as a hypaethral structure, it is distinct in architecture from Orissa temple architecture as well as temple styles in the rest of India. The temple is a circular structure, 30 feet in diameter, which is built of coarse sandstone and has barely 8 feet high walls containing 64 niches to house the sculptures of Yoginis or Dakinis (2 feet in height). Cultural Heritage & 64 Yogini temple of Hirapur The concept of yogini is not known to many till today but the yogini culture is prevalent in India from 9th Century CE. The yogini temples are also known as Tantrik Temples as stories have been attached to these temples by the locals of the villages who still worship these yogini temples and give them utmost importance. The origin of the yoginis appears to be in smal, rural villages are the local deities of the villages. The temple of yoginis has been diminishing slowly and being such an important aspect both in tangible &intangible way that needs protection for its survival. Heritage tourism protects historic, cultural, and natural resources in towns and cities by involving people in their community. When they can relate to their personal, local, regional, or national heritage, people are more often motivated to safeguard their historic resources. Heritage tourism educates residents and visitors about local and regional history and shared traditions. Through involvement and exposure to local historic sites, residents become better informed about their history and tradition. Marketing of 64 yogini temple (heritage site) can bring benefit to the local community and can increase their standard 429
of living. Their belief and their tradition can educate the tourist visiting the temple and learning about its importance. Marketing of Heritage tourism can bring the destination popularity and awareness can be created among interested tourists Objectives of the Study
Promoting cultural heritage as a tourism product Marketing of64 Yoginitemple of Hirapuras a tourism product Tangible andIntangible aspects of 64 yogini temple
Promoting Cultural heritage as a Tourism product The Natural and cultural heritage sites are considered to be the region’s most important tourism attractions and can be featured as the most important tourism product for any place. Strategies should be formulated to protect and promote the cultural heritage and create awareness amongst the tourists who would like to gain knowledge and learn about the insights of the heritage sites. Nowadays niche tourist prefers travelling to destinations which have higher importance to Cultural Heritage tourism.It has become a ‘specialty segment’ of Travel and Tourism industry. This form of tourism has become a learning arena for tourists who can interact with the locals, learn how to make local handicrafts, educate by knowing about the history of the place, communicate with all age group and enjoy their local meals. It can promote through different social networking sites which are operated, word of mouth can also be used for promoting cultural heritage sites. The state government should introduce fairs and festivals, which can also benefit the locals showcasing the beauty of the places naturally through the local residents. Light and sound show can also be organized in a more innovative manner which can involve the tourists for their better understanding. Plays can be organized by the locals for educating the visitors about their culture and the importance which has been followed since ages. Promoting Cultural heritage does not mean only protecting and preserving it, it should not be fixed or frozen rather should be promoted in other aspects as well and the state tourism board and the government should extend their help in making the cultural heritage promoted as a tourism product. Marketing of 64 Yogini temple of Hirapur as a tourism product Destination positioning Destination positioning presents a form of market communication, and used in tourism marketing it enables tourist destinations to enhance their attractiveness and competitiveness through the development of a unique distinctive position compared to their competitors (McCabe, 2009; World Trade Organization, 2006; Selby, 2004; Buhalis, 2000).It is necessary to position 64 yogini in a way which will enable potential visitors to picture and visualize the temple and the village of Hirapur in their mind as a distinctive place.
430
Using interpretative strategy Making sites and communities come alive is the focus of this strategy. It can include instruction on how to tell the story of your site or community, understanding interpretive methods and how to attract and engage visitors. This interpretation utilizes facts and embeds them into stories, which should enable a better understanding of the selected themes, and on the simplest level this should provide a more effective communication (Carter, 2001). Examples of some forms of interpretation which can be used for marketing the 64 yogini shrine of Hirapur are such as brochures, driving tours, walking tours, museums, exhibits, audio tours and tour guides. Fairs and Festivals can be organized keeping in mind the theme and the culture of the 64 yogini shrine. Marketing the Community's Cultural Heritage We can market 64 yogini by collaborating with the tourism industry and by attracting visitors to their community or region. We can define their community's message and develop strategies using public relations, social media, advertising, tourism industry sales and other marketing tools. Making Your Community Visitor Ready To market the shrine of 64 yogini, it is essential to understand the importance of visitororiented customer service, how the needs of tourists differ from residents, operating visitor-friendly retail establishments and cultivating hospitable front-line tourism employees. Tangible and Intangible aspects of 64 yogini temple Heritage tourism comprises of two aspects, Primary which is the main attraction and secondary which enhances or support the secondary aspect. Not only restricting itself to the monumental remains of cultures, cultural heritage as a concept has now come to include new categories. Today, we find that heritage is not only manifested through tangible forms such as artifacts, buildings or landscapes but also through intangible forms. Intangible heritage includes voices, values, traditions, oral history. This can be seen through the cuisine, clothing, forms of shelter, traditional skills and technologies, religious ceremonies, performing arts, storytelling. The 64 Yogini Shrine at Hirapur was built under the aegis of Bhauma and Somavamsi rulers of Orissa and is the smallest in the group. Constructed as a hypaethral structure, it is distinct in architecture from Orissa temple architecture as well as temple styles in the rest of India. The temple is a circular structure, 30 feet in diameter, which is built of coarse sandstone and has barely 8 feet high walls containing 64 niches to house the sculptures of Yoginis or Dakinis (2 feet in height). The projected niches on the exterior 431
of the edifice are studded with icons of “navakatyayanis” made of sandstone. But the ninth century structure is a beautiful site where you can really understand the architectural qualities of the Oriya temple builders of that era. “The 64 Yoginis are found in dancing posture. Most of them holding wine cup, Khadga and Vajra etc. are presented in ferocious form. The central deity, a three-headed dancing Siva is a unique piece of art work. The temple at Hirapur though smaller in dimension is of high artistic order. Made of black chlorite, the figures are in standing pose. The exquisite workmanship of these Yoginis figures indicates the high artistic excellence and exuberance of the period” (Gitarani Praharaj& Chittaranjan Mallia, Art Heritage of Odisha). Odisha has preserved some of the most important aspects of India's own cultural heritage. It is for this reason that the State has so much to offer the curious traveler who seeks to unfold new mysteries. UNESCO defines intangible cultural heritage as the practices, representations, expressions, knowledge, skills – as well as the instruments, objects, artifacts and cultural spaces associated therewith – that communities, groups and, in some cases, individuals recognize as part of their cultural heritage. In 2003, UNESCO adopted the Convention for Safeguarding of the Intangible Cultural Heritage, to recognize intangible heritage as a critical part of the global efforts to promote understanding and respect for cultural diversity. Intangible heritage is becoming a 'learning arena' for tourists, where they receive information though formal and informal communicative channels from the local residents that are non-traditional and memorable. It could be, for example, learning to dance, sing, make handicrafts, and cook traditional meals, and participating in different rites, rituals, festivals and the like. The fact is that the value of intangible heritage is defined by the communities themselves - they are the ones who recognize how intangible heritage is manifested. This is, and needs to be, a bottom-up approach. Tourism can help with this approach, raise awareness of the uniqueness and importance of intangible heritage, and strengthen a sense of pride among locals, while generating income for community members. The locals of Hirapur can educate the visitors with the existing knowledge they have and can also help them in collecting information about the yogini temple. This kind of niche tourism can be promoted well for the development of the local residents and making their lives easier by giving importance to the heritage site which they have valued, maintained and worshipped from generations. It can be a win-win situation. A visit to the Yogini temple at Hirapur marks only the beginning of the journey into Odisha's mysterious past. It also throws light on the role the worship of feminine cults played in promoting harmony through the synthesis of major religious traditions of medieval Odisha.
432
A number of ancient texts recount terrifying stories highlighting the sorcery or witchcrafts aspect of the Yoginis. According to these stories, Yoginis could acquire certain magical powers with which they could transform human beings into animals and birds. A few other stories talk of a category of witches referred to as 'Dakinis', known for their ability to fly, besides their appetite for human flesh. Though yogini cult has seen a diminishing phase and hardly have we found the mention of yoginis these days, it is an accepted truth that these once ruled the roost in Orissa and have contributed immensely towards the spiritual and architectural growth of Orissa. Conclusion Heritage is a comprehensive concept that consists of many diverse values. A well preserved heritage enables communities to learn about their cultural history truly and chronologically. Heritage is not a renewable resource and therefore it should be conserved in a most efficient way. Heritage sites of small regions should be identified and be given equal importance. This would lead in promotion of the region and benefit the locals economically as well. Culture and heritage has a very thin line and therefore goes hand in hand. The 64 yogini temples of Hirapur are of utmost importance as it is one of the only four temples which exist in India. The Yogini temples architecture are different from other temples and should be preserved for future generations and the intangible aspect associated with the temples should also be promoted by the locals in form of plays and stories to educate the visitor and the tourists. The government has started with the Yogini Festival in Hirapur where cultural functions are performed like Dance, Drama, songs on yoginis to promote these temples and also tourists to know the cultural importance behind these temples. Heritage should be conserved and developed and should sustain its values and significance by giving the heritage a compatible use. Recommendations Different aspects of tourism are marketed and heritage being the most important aspect of tourism in terms of attracting tourists should be marketed with all ways and means. Heritage tourism can be termed under Niche tourism as tourists can spend time with the locals in educating themselves about their culture. The 64 yogini temples are very rare temples and should be marketed and preserved. They are still worshipped by the locals and are the only tantric temples as called by the locals of Hirapur. Hirapur being a small and remote village in Odisha has never been promoted for its beautiful architecturally carved temples and a lot of research has been done on yogini temples which need to be highlighted for the tourists who are interesting to know about the place. This is an open research for other researchers who would like to further study about the Cultural Heritage aspect of 64 yogini temples of Hirapur and can come up with new ideas to promote and market it and showcase it to the world.
433
References Apostolakis, A. (2003), The Convergence Process in Heritage Tourism, Annals of Tourism Research, 30(4), pp. 795-812. Beeton, S. (2003), Swimming Against the Tide - Integrating Marketing with Environmental Management via Demarketing, Journal of Hospitality and Tourism Management, 10(2), pp. 95-107 Craik, J. (1997), The Culture of Tourism Sites in Rojek, C. and Urry, J. (Eds), Touring Cultures: Transformations of Travel and Theory, Routledge, London. Dehejia, Vidya (1986) Yogini, Cult and Temples: A Tantric Tradition. New Delhi: National Museum, Donaldson. D.K. PrintworldLtd.Gadon, Revision, 25, 1. p.33(9)
E.
W. (2002). Probing
the
mysteries
of
the
Hirapur
Yoginis.
Fredrick M. Collison, Daniel L. Spears, (2010), Marketing cultural and heritage tourism: The Marshall Islands, International Journal of Culture, Tourism and Hospitality Research, 4(2), pp.130 – 142. ICOMOS, International Cultural Tourism Charter, Principles and Guidelines for Managing Tourism at Places of Cultural and Heritage Significance, ICOMOS International Cultural Tourism Committee. 2002. John Feather, Managing the documentary heritage: issues fro the present and future, In: (Gorman, G.E. and Sydney J. Shep [eds.]), Preservation management for libraries, archives and museums. London: Facet. 2006, pp. 1-18. J. Jokilehto (2005) Definition of Cultural Heritage: References to documents in History National Trust for Historic preservation, A Privately funded non-profit organization Navneet Kaur (2013) Cultural and Heritage Tourism: With special reference to elements and variables of the core of cultural and heritage tourism; Chandigarh.Retrieved from http://www.preservationnation.org/information-center/economics-of-revitalization/heritagetourism/how-we-can-help/workshops.html?referrer=https://www.google.co.in/#.VdYiI_mqqko Richard W. Butler & David Airey (2003), The Core of Heritage Tourism, Annals of Tourism Research, Vol. 30, No. 1, pp. 238–254. Simon Thurley, Into the future, Our stategy for 2005-2010, In: Conservation Bulletin [English Heritage], 2005 (49). Thomas E. (2002), Tantra and Sakta Art of Orissa, New Delhi. http://www.tourismoforissa.com/tours-to-orissa-temples/64-yogini-shrine.html Retrieved from http://www.unesco.org/culture/ich/index.php?lg=en&pg=00002
434
Retrieved
from
REPOSITIONING JAMMU AS A DISTINCT TOURIST DESTINATION: PROSPECTS & CHALLENGES Tarun Vashishat Abstract Tourism is a major contributor to the economy of the state of Jammu and Kashmir. Tourism being a vital tool of economic growth, also provides ample employment opportunities to both skilled and unskilled population of the state, thereby contributing significantly towards its GSDP directly and indirectly. The state has unique and well identified tourism products in all its three regions namely Jammu, Kashmir and Ladakh. Jammu City acts as a hub and serves as an entry point for all tourists intending to visit different attractions of the state including Amarnath Ji, Mata Vaishno Devi Shrine, Srinagar, etc. Despite its immense potential and publicity for temples, Jammu’s image has largely been reduced to that of a place of intermediate halt where tourists arrive just to proceed further towards their ultimate destination. The present paper is based on the theoretical construct with various marketing strategies to be adopted at Jammu city to overhaul and re-brand it as a distinct tourist destination in the state so as to extend the average length of stay of the tourists. Key Words: Marketing Strategies, Economy, Tourism Industry, Hub, Destination Rebranding. Introduction Tourism is a significant tool for economic prosperity in the state of Jammu and Kashmir. It has been a mean of sustenance to a vast majority of population since many decades. The state has always stayed in limelight at the national and international level due to its diverse cultural & natural heritage along with well-known tourism products corresponding to that of adventure tourism, pilgrimage tourism, heritage tourism, ecotourism, rural tourism, MICE (Meetings, incentives, conferencing, exhibitions), etc. These products are distributed all over the three geographic regions of the state, namely: Jammu, Kashmir and Ladakh.The Department of Tourism, J&K is the main regulatory authority responsible for development and promotion of tourism in the state. In order to tap the immense tourism potential in all three regions, several area specific tourism development authorities have been created in the past so as to increase the inflow of tourists in Jammu and Kashmir. However, the real challenge has always been that of equitably distributing tourist footfalls and its benefits at various destinations in the state in order to ensure balanced regional development. Jammu city, which is also known as the city of temples, plays an important role in the tourist movement in the state. But unfortunately, even with its catchy tagline, the city has not been able to make its mark in terms of average length of stay of the tourists. Jammu simply acts as a transit or base for both domestic and foreign tourists intending to visit
435
various parts of the state. There are limited number of attractions within the city where the tourists can spend their time and money so as to satisfy their psychological needs. A detailed analysis of the current scenario coupled with a strategic framework is required to overcome the problem and showcase Jammu in a new light to the rest of the world. Theoretical Background The concept of re-positioning and re-branding Re-positioning denotes changing the brand status in the view of rising market competition and/or struggling sales. It involves altering the marketing mix in response to the market environment in order to meet the needs of the target audience or to reach a whole new segment of customers. Branding consultants and market researchers play a vital role in operationalizing the re-positioning strategies. Re-branding, on the other hand, is the re-establishment of a product or service with a new look or feel. It may be done by changing the name, tag line or marketing strategies. Re-branding focusses on altering customer perception towards a particular product or service by making it more attractive in terms of value attainment. It is not possible to rebrand a product or service overnight. Instead, it is a slow on-going process which may even take several years. Tourism being a very peculiar product / service will take much time to rebrand. Review of Literature: Substantial amount of research has been done for the issue of re-branding tourist destinations at the global level. Few of the studies are mentioned below: Fadare & Oduwaye, (2009) have focused on the need to re-brand Lagos, the most populous city in Nigeria, by means of re-generation to bring it at par with megacities in the United States of America and Europe.Despite being the second fastest-growing city in Africa and most well developed Nigerian city in terms of infrastructure, it ranks very low in terms of global living standards in addition to its political, economic, social and cultural problems. Therefore, the goal of re-branding Lagos with a strong and distinct character can be achieved with participation of the private sector. Bisa, (2013) has highlighted the various challenges faced by Greece due to its economical & socio-political unrest. The state is aiming to re-brand itself at the global level with special emphasis on tourism and foreign direct investment. Crommelin, (2013) discusses various attempts to overhaul Newcastle’s image after the economic challenges of the year 1999 following the closure of BHP steel works. Mutana & Zinyemba, (2013) have identified ‘innovative packaging’ as the tool for rebranding the Zimbabwe tourism product so as to make it more suitable for the modern
436
day tourist. The authors established that along with the traditional tourism products, the tourist of today is also interested in products which are more experiential and culturally related. Manurung, (2014) focusses on re-branding of Indonesia as a preferred tourist destination among other South-East Asian rivals like Malaysia and Thailand. The author highlights the efforts by Indonesian Ministry of Tourism like coining the new slogan of 'Wonderful Indonesia,' opening up foreign direct investment opportunities and promoting MICE and eco-tourism. Above discussion highlights the efforts made by various authors regarding rebranding & re-positioning international cities in light of certain internal problems (political, economic &social) along with stiff competition from nearby rivals. However, there is an absence of studies focused on re-branding and re-positioning of a transit destination like Jammu. Objectives of the Study The main objectives of the study are as follows: (i) Identifying and analyzing the factors that have led to the current status of Jammu city as an intermediate hub. (ii)Exploring the possibilities of positioning Jammu city as a uniquedestination. (iii) Suggesting feasible marketing plans and strategies to re-brand and reposition Jammu city. Methodology The study is non-empirical in nature, therefore it is mainly focused upon collection of data from various secondary sources such as journals, research papers, articles and internet websites. Various destinations were visited by the researcher and unobtrusive observation techniques were adopted to construct this paper. Jammu City as Tourism Hub of the State Situated on the banks of Tawi River, Jammu City is the winter capital of the state of Jammu and Kashmir. It acts as a hub for tourists going to Amarnath Ji, Mata Vaishno Devi Shrine and Srinagar.All major routes leading to Rajouri, Poonch, Kashmir, Ladakh, Srinagar, Katra,etc. start from here. Given below is a distance chart depicting the relative position of Jammu in the state.
437
Fig 1. Distance Chart (in km) representing position of Jammu w.r.t. popular destinations in J&K As far as connectivity is concerned, Jammuis well connected to the rest of India with frequent flights trains and buses. The city has its own domestic airport where popular carriers like Indigo, Spicejet, Go Air, Air India and Jet Airways provide regular services. The domestic aircraft movement for the period April 2014 to March 2015 was 10065 catering almost 952641domestic + international passengers. Likewise, Jammu Tawi Railway station has trains going to and coming from all major Indian cities. Popular ones are: Pune–JAT Begampura Express, New Delhi–Udhampur Uttar Sampark Kranti Express, Indore–JAT Malwa Express, Rishikesh–JAT Hemkunt Express, Guwahati–JAT Amarnath Express, Howrah–JAT Himgiri Express and so on.NH 1A passes through Jammu and it is quite easy to reach the city by bus from the adjoining states.There is a huge potential of tourism in Jammu city. Some of the popular tourist attractions are Amar Mahal Palace, Bahu Fort, Dogra Art Gallery, Raghunath Temple, Ranbireshwar Temple, etc. Majority of domestic tourists at Jammu are pilgrims but there is a very limited movement of foreigners in the city as they are strictly transit passengers. Table 1. Domestic Tourists’ arrival in Jammu from 2008 to Jan 2015 Year 2008 2009 2010 2011 2012 2013 2014 2015
No. of tourists 6576000 8235064 8749000 10115232 10394000 9287871 7803193 359453 (upto Jan, 2015)
Source: Govt. of Jammu & Kashmir, Economic Survey 2012-13 &2014-15 The Pitfalls: There is an urgent need to develop cultural &heritage centres along with recreational spots within Jammu city which can prolong the stay of tourists. Since the number of tourist spots in & around the city are limited, tourists generally cover all of them within a span of 3-4 hours in privately hired vehicles arranged by the tour operators. Therefore, actual spending at the attraction is cut short as tourists have to further move towards their ultimate destination. There is a clear cut lack of perspective planning and coordination between various departments responsible for maintaining infrastructure facilities at key tourist spots in the city. An example of great negligence is the Balidan Stambh, India’s tallest war memorial raised as a mark of respect for the brave soldiers who laid down their lives fighting militancy in the state of Jammu and Kashmir in the past 25 years. It was handed over to the state administration by the Indian Army in 2009 but since then the monument is 438
dying a slow death as both parties have failed to reach a consensus regarding bearing of maintenance charges. What perfectly sums up the state of irony is the fact that even the eternal flame lit in memory of over 6000 martyrs who sacrificed their lives for the honor of mother India remains switched off most of the times. Another place of historic significance having vast tourism potential within the city limits is the Mubarak Mandi Palace. The monument served as the royal residence of Dogra rulers before independence but as of now, most of the palace lie in ruins. Efforts were made in 2008 to restore the building into its old honor and glory by assigning the conservation and restoration project toArcheological Survey of India. But amid widespread negligence, bureaucratic red tapeand failure to utilize the allocated funds, the work is moving on at snail’s pace. Fig 2. Distance Chart representing positions of Balidan Stambh and Mubarak Mandi in Jammu Jammu Tawi Railway Station
2.5 kms
Balidan Stambh
3.0 kms
General Bus Stand
3.0 kms Mubarakh Mandi Complex
Table 2. 13th Finance commission Award (2011-2015) Conservation of Mubarak Mandi Heritage Complex Components
Cost (Rs. in crore) Restoration & conservation of Raja Amar Singh Palace 22.06 Restoration & conservation of Dogra Art Museum,Badi Deori, Royal Court & 19.61 Gadvai Khana Restoration & conservation of Mahal of Raja 10.40 Ram Singh’s Queens Total 57.07
Ist installment of Rs. 8.51 crore released/ utilized to the implementing agency for the project by Ministry of Finance/Culture, GOI. The Utilization Certificate has been submitted to Ministry of Finance, GOI for release of next installment. Source: Govt. of Jammu & Kashmir, Economic Survey2014-15 The Game changers a) Artificial Tawi Lake: A potential game changer for tourism in Jammu is the highly sought after Artificial Lakeon the banks of river Tawi. The project was
439
conceived in 2007 by the Congress-PDP coalition governmentin Jammu & Kashmir led by Ghulam Nabi Azad. Work on the project was initiated in the year 2010 but since then, the delays in completion has led to a nearly 150% increase in its estimated cost. Moreover, the current Chief Minister of the state sparked controversy in the month of May 2015 by announcing that state government has decided to shelve the project as it is not economically and technically feasible. This led to widespread anger among jammuites as both coalition partnershadearlier promised the project in their respective election manifestos. One month after, it was announced by the government that the project work will continue and shall be completed within the stipulated time frame. b) Mubarak Mandi Ropeway Project: The much awaited Mubarak Mandi ropeway project has cleared all the necessary environmental and forest area clearances and the construction work will be taken up soon. The ultra-modern 1570 meters long ropeway with detachable Gandola system will be constructed in two phases. i.e. Peer Khoo to Mahamaya and Mahamaya to Shahbad. The project will play a key role in retaining domestic and foreign tourists in the city of temples for longer durations. c) Mubarak Mandi Palace: The Mubarak Mandi Palace is the prime example of Jammu’s rich cultural heritage which has the potential of being a UNESCO World Heritage Site. The new BJP-PDP coalition government has shown signs of commitment by keeping the anticipated restoration and conservation of the complex at top of its tourism agenda for Jammu city. It is estimated that the highly artistic and delicate process may take at least 5 more years to bring back the monument in its original splendor and glory. Once the project is completed, it will give a new outlook to the city of temples and will greatly help Jammu in re-positioning itself as a standalone destination in the state. Revival strategies to be adopted The following strategies could be adopted at Jammu city for tapping the huge potential of tourism based on personal observations and other available data: 1. 2. 3. 4. 5.
A comprehensive branding campaign be launched in consultation with the major stakeholders. Impetus be given on infrastructure development and maintenance at key tourist spots. Proper accountability mechanism be established to access the progress and performance of tourism projects. Jammu Baisakhi Festival held every year at Mubarak Mandi complex be promoted not only in the state but at national level as well. Large scale mushrooming of hotels be done through PPP model.
440
6.
Better coordination between implementation agencies and state departments be established. 7. Feedback mechanism should be established to assess the satisfaction level of the tourists. 8. Providing effective directional and information signages of tourist spots within Jammu city. 9. Cost Benefit Analysis of all future tourism projects be done so as to avoid inconveniences. 10. Generating public awareness about importance of tourism, especially at the first point of contact like bus stand, railway station and airport. Conclusion Jammu enjoys the status of a transit citydue to its geographic location with respect to major tourist attractions in the state. It accommodatesthe pilgrims of holy Amarnath Ji and Mata Vaishno Devi shrines along with other leisure & business tourists. Despite of having a huge tourism potential, the city has failed to fully capitalize on the opportunity in absence of a long term perspective planning.The need of the hour is to analyze the current situation and devise strategies foran integrated marketing approachwith the help of professional expertise in order to ensure sustainable economic growth of Jammu city. References Bisa, S. (2013), Rebranding Greece: Why Nation Branding Matters, Exchange: The Journal of Public Diplomacy, 4(1), 6. City Development Plan for Jammu. (n.d.), Retrieved August http://jnnurmmis.nic.in/toolkit/JammuCdp/EXECUTIVE_SUMMARY.pdf.
13,
2015,
from
Crommelin, L. (2013), Selling Newcastle to the world, and to Newcastle: A Case Study of the Official and Unofficial Rebranding of Newcastle, NSW, In State of Australian Cities’ conference, Sydney NSW. Available at: http://www.soacconference.com. au/soac-conference-proceedings-and-powerpoint-presentations/ Fadare, W., & Oduwaye, L. (2009), Rebranding Lagos through Regeneration. It is still 'Mubarak MandiShahbad' cable car project for Tourism Dept. (n.d.), Retrieved August 13, 2015, from http://www.tribuneindia.com/news/jammu-kashmir/community/it-s-still-mubarak-mandi-shahbadcable-car-project-for-tourism-dept/56434.html J&K Economic Survey 2012-13. (n.d.), Retrieved August 12, 2015, from http://www.jandkplanning.com/index.php?option=com_content&view=article&id=2307&Itemid=295& lang=en J&K Economic Survey 2014-15. (n.d.), Retrieved August 12, 2015, from http://www.jandkplanning.com/index.php?option=com_content&view=article&id=2380:jak-economicsurvey-2014-15&catid=957:economic-survey&Itemid=295&lang=en
441
Manurung, H. (2014), Rebranding of Wonderful Indonesia on Marketable Tourist Destinations. Available at SSRN 2528216. Market Repositioning Strategies (n.d.), Retrieved August 11, 2015, from http://www.mbaco.com/resources/marketing/defining-market-repositioning-strategies Mutana, S., & Zinyemba, A. Z. (2013), Rebranding the Zimbabwe Tourism product: A case for innovative Packaging. International Journal of Advanced Research in Management and Social Sciences, 2(4), 95-105. What is rebranding? - Definition from WhatIs.com. (n.d.), Retrieved August 11, 2015, from http://whatis.techtarget.com/definition/rebranding
442
TOURISM POLICE PLAY ASIGNIFICANT ROLE FOR SAFETY & SECURITY OF TOURISTS - A CASE STUDY Nandish Kumar, Sushma Maligi ABSTRACT The purpose of this research is to propose a legal framework for introduction of Tourism Police Department, which consonance with the Ministry of Tourism, Govt. of India on an agenda to make tourism industry safe and secure. Increased rate of crime in India against foreign tourists during the last six years has been responsible for scotching India’s image abroad and casting a black shadow on the country’s tourism industry. The tourism business is badly affected and the number of inbound tourist arrival in India has fallen. The problem behaves a serious thought. The black area of the tourist security behaves a considerable efforts and those who are responsible for it should be identified, if tourism has to be promoted in a splendid way in the country. In this study, I have tried to divulge, why tourist is advantageous targets of criminals, the responsible factor for the downfall of tourism safety and security, efforts and solutions. The study revolves around on the potential issues of tourism Safety and Security in India. The Current study is explorative and conceptual in nature. Data have been collected from various research journals, books, newspaper editorial articles, expert’s interviews and tourism stakeholder’s suggestions, surveys and websites were visited for this research. The scope of study divulges the current issues of tourism Safety and Security in terms of tourism police. As a solution, Separate Tourism Police Department should be set up in all tourist gathering areas in the country so that this department will provide fully safe and secure environment to the tourist. Keywords: Tourism Police, WTTC, Crime, Safety, Security Introduction India where "Atithi Devo Bhava" (GUEST IS GOD) has remaineda custom for millions of years, the guest is treated as deity and even the enemies and aggressor were treated deservedly. India has a history of many foreign travelers and writers who visited the India and loved it, their books and memoirs are filled with delightful and beautiful description of our country and its hospitable people. From Tesiyas, Megesthenes to Fa –Hien and Hiun-Tsang, from Marcopolo, Ibne Batuta to Vasco de Gama and Taranath the list is large,… India welcomed all! But what happened to this country now why it is forgetting its welcoming custom and amicable 443
nature. During the past few years, India is no longer remain a safe and secure destination for tourists especially women. Rape, harassment, robbery, teasing even theft and murders of foreigners are become common in our country and have increased suddenly in the last six years, the result of which can be seen in a big drop in tourists arrivals in our country. The tourism industry has two main component tangible and intangible. The tangible component has transport bodies like airways, roadways, railways, waterways and accommodation services like hotels, apartments, guest house, lodge and related hospitality services like food and beverages, tour operators, safety and security. The intangible component has culture, leisure, adventure, satisfaction, loyalty, experience, rest, services delivered, willingness towards work, room amenities, and comforts. Now we can say that the tourism industry is a bundle of various industries in which many complementary and inter-related industries bring together economic development and growth. They work as a catalyst for economic development and growth and increase the value to the leisure and recreation. According to World Travel and Tourism Council (WTTC), travel and tourism are an important economic activity in most countries across the world. Tourism directly produces employment in its own sector as well as via indirect and induced effects in the concern sectors of the economy. According to WTTC report "The Economic Impact of Travel & Tourism 2014 -INDIA" The direct contribution of Travel & Tourism to GDP was INR2, 178.1bn (2.0% of total GDP) in 2013, and to rise by 6.4% pa, from 2014-2024, to INR4, 346.4bn (2.1% of total GDP) in 2024. The total contribution of Travel & Tourism to GDP was INR6, 631.6bn (6.2% of GDP) in 2013, and to rise by 7.0% pa to INR13, 983.0bn (6.8% of GDP) in 2024. In 2013, Travel & Tourism directly supported 22,320,000 jobs (4.9% of total employment). This is expected to rise by 2.1% pa to 28,081,000 jobs (5.1% of total employment) in 2024. In 2013, the total contribution of Travel & Tourism to employment, including jobs indirectly Visitor exports generated INR1, 110.9bn (4.1% of total exports) in 2013. This is forecast grow by 4.3% pa, from 2014-2024 to INR1, 745.8bn in 2024 (2.1% of total). Travel & Tourism investment in 2013 was INR1, 938.7bn, or 6.2% of total investment. It should rise by 6.5% pa over the next ten years to INR 3,981.3bn in 2024 (6.4% of total). Now we can say tourism industry plays a fast and dynamic role in country's economic growth. For the purpose of tourist safety and security, the establishment of Tourism police is much necessary. The compulsion to introduce Tourism Police System to end crime, malefaction and violation towards the tourists and improve the safety and security of India's tourism environment, this research also focuses on transforming to the hospitable environment and improving India's image as the safe and secure tourist destination, and developing unanimity on the necessity to the establishment of Tourist Police department in main tourism destinations. Therefore, the purpose of this study lies in Ministry of Tourism (India) effort to increase competitiveness in the tourism industry through the establishment of Tourism Police department. In order to do so, all 444
states and union territory, where tourism is the major industry, must understand the importance of enhancing security environment, as well as the introduction of the Tourist Police department. Research Methodology This study is conceptual in nature. Data have been accumulated from secondary sources such as research journals, books, newspaper articles, expert’s interviews, stakeholder’s suggestions and digital sources like websites, e-reports and surveys. This study is based on real incidents and crimes reports, which have been taken place in Indian tourism industry. Theoretical Elucidation Importance of Safety in Tourism Tourist safety and security remains an important issue across world. Real or Perceived threats to tourist safety and security have instant impacts on a destination's prestige. If tourist safety and security is not well managed, untoward incidents can significantly impact on the lucrativeness and sustainability of a tourist destination. If a tourist feels threatened, unsafe and insecure during a tour this may impact on stay period and expenditure in a destination and reduce the possibility of plenum visitation and wordof-mouth referrals. If a destination develops a negative reputation for tourist safety and security this will likely result in a declining tourism industry for the country. So now we can say, if a tourist does not feel safe and secure but feels threatened, that will lead to negative reputation of the tourist destination, which will ultimately lead to decrease and damage on the tourism industry. Tourist is Advantageous Targets for Criminals Tourists are Advantageous targets of criminals because they are not aware of the local circumstance and high-risk areas. Tourists have a large purchasing capacity comparison to the general population. Tourists become easy marks for perpetrators because they are easily identified and are usually not very well equipped to defend an attack. Sometimes popular tourist sites such as local traditional markets, gardens or beaches are within walking distance from the hotel may bring tourist into high-risk areas lying directly in the way taken to reach these sites. The tourists can be stained easily because they do not dress, look or acts like local people. Some hotels in India warn their guests not to leave their hotels in the late evening. This problem is not only in India, It is a global problem of the tourism industry. Hotels, Travel Agents and tour operators should publish local destination maps with showing safe and secure routes of travelling. They are supposed to warn
445
about the dangers to the tourist. Crime against tourists results in negative publicity and develops a negative image in the minds of tourists. We can say that tourists are easy targets for crimes but now Tourists are generally aware of the fact that they are lucrative targets for crimes. Tourism Police Department Tourism Police Department is a system or unit of a special police which protect lives and properties of tourists from crimes. This department provides full assistance to tourist in any unexpected situation. These are special policemen who work for tourists' safety and security. Till now, many countries have introduced Tourism Police Department to control crimes against tourists and provide the best tourism environment, for example, Thailand, Malaysia, Greece, Australia, Costa Rica, Egypt, Peru and Kenya etc. Our country is very vigilant about tourist safety and security. Several states of India have already introduced or are planning to introduce tourism police, like Delhi, Uttar Pradesh, Karnataka, Maharashtra, Himachal Pradesh, Jammu & Kashmir, Kerala, Goa, Rajasthan, Punjab, Orissa, Andhra Pradesh, and Madhya Pradesh. India’s first Tourism Police station is located in Mattancherry (9 k. m. from Ernakulam), it will make the God’s own country more friendly for tourists. The Tourism Police station offer various services and facilities to the tourists like registering complaints and grievances on lost passport, visa and expired visa, booking for boating and taxis etc. Some Recently Heart-Rending Crimes against Tourist in India Every news channel and news paper’s columns are generally filled with the news of pick pocketing, snatching, stealing valuables, cozenage, and sexual assaults on the tourist women. The rate of crime against tourists has by surprise increased in the last seven-eight years. Improvements in crime are mainly responsible for reducing India’s reputation in the world. In November 2014, The Japanese woman who came to India was trapped by a clique of guides, who took her to Digha, East Midnapore and Bodhgaya in Bihar where she was gang raped. They robbed her of 76,000 rupees [£1,200] using her ATM card. Javed Khan and his brother Sajid Khan were arrested in this crime. In January 2014, a 51-year-old Danish woman was raped and robbed near the New Delhi Railway station by 8 men. According to the police, the Danish woman had forgotten her way to her hotel in Paharganj. “When she asked for the way to hotel near Connaught Place, a group of men told to take her to the hotel.but they took her to
446
secluded garden at the end side of the railway station where she was raped and robbed.” In March 2013, A Swiss couple who was cycling from Orchha to Agra. The couple has decided to stay for a night camp in a village in Datia in Madhya Pradesh. There they were physically inveighed by 8 local persons and robbed. The man was tied up, and the 39-year old woman was gang-raped in front of her husband. Also in March 2013 a 31-year-old British woman told police she jumped from the balcony of second-floor from hotel room to escape victimization by the manager of the hotel and another security man. The British woman stayed in a hotel of Agra (the city of Taj Mahal) Uttar Pradesh. In Jan 2008, an American woman was molested at a temple in Pushkar, Rajasthan. She lodged FIR at the Pushkar police station. In February 2013, A Chinese woman was raped in the capital of India. The accused (Tarik Sheikh) has been arrested On the basis of the victim's allegations. Accused was a management graduate and organiser of high-profile parties in the Delhi NCR area. The Chinese girl was taken to AIIMS for a medical check-up along with an official from the Chinese embassy, after she lodged an FIR of rape. In June 2013, near the northern Indian town of Manali A thirty-year-old American woman was raped by three men in a truck. The American woman told police officers she took a lift in a truck to take her from the village of Vashisht (Manali is a famous and attractive place for backpackers’ tourist in India, while the village of Vashisht is well known for its hot water springs.), where she had been visiting a group of touristfriends, to her hotel in Manali, which is around 3 miles away.In Feb 2008, seven years ago at Goa’s beach a 15 years old British girl Scarlett Keeling was drugged, raped and murdered. Her bruised naked body was found at Anjuna beach. first the Goa’s police dismissed it as a natural over drugged death but Scarlett’s mother Ms. Fiona Mackeown struggled to have re- examined the case. On 16/12/2009 this case was discussed in parliament of India. Two local’s persons Samson D’souza and Placido Corvalho were arrestedin this case. In Sep 2007 two Japanese women were gang raped in Agra. Women alleged that on arriving at Agra they met two persons Raees and Sunny, with whom they became friendly, as Sunny could speak Japanese very well, so they felt comfortable.They had a drinking session, after it, the two women were assaulted by these two person. The next day, a new person joined the offender and assaulted them again. The victims were kept in for three days.
447
In June 2007, a South Korean woman was raped. She told that he was a biker who gave her lift for helping her to catch a Delhi-bound bus which she had missed in Manali - the popular hill station of Himachal Pradesh. These are a few among a huge number of crimes against foreign tourists in India. Even male tourists are cheated, robbed and harassed, by those who work in the tourism industry and sometimes by local people. TABLE: 1: The following are some critical cases against tourist in India during the last 10 years. Year November 2014 January 2014 February 2013 March 2013 March 2013 June 2013 January 2008 February 2008 September 2007 June 2007
Crime Gang raped, Robbed Gang raped, Robbed Raped Gang raped, Robbed Attempt of rape Raped Molested Drugged, raped and murdered Gang raped Raped
Sex Female Female
Place Digha, East Bodhgaya New Delhi
Nationality Midnapore, Japanese
Female Couple
Delhi NCR Datia, M.P.
Chinese Swiss
Female Female Female Female
Agra, U.P. Manali, H.P. Pushkar Goa
British American American British
Female Female
Agra, U.P. Manali, H.P.
Japanese South Korea
Danish
Psychological Wrong Impression about European Female There is a wrong impression about European female in south Asian peoples, that European female do sex as casual as handshake. South Asian male prefer white skin and there is nothing fairer than white European female. Females polite behavior and polite gestures are sometimes construed them into a problem. Their unawareness about the culture can easily make them a soft target for criminals. Generally if a man finds a foreign female walking alone on the way, or staying in a hotel, in a market etc.; he takes pleasure in seeing a sight and his metempirical disorder comes into play.In south Asian countries, it is a major Psychological problem about European female. The Work Scope of Special Tourism Police and Its System Tourism Police, going beyond its conventional duties of maintaining law and order, Now Tourism Police play also the role of a tour guide and a facilitator to tourists in across the country.
448
The tourism industry is the world’s rapidly growing industry. For maintaining its growth tourists, safety and security play a significant role. There is a need of special personnel to look after the needs of tourist’s safety and security, and manage the tourist enquiries and grievances and ensure that the crime barrier doesn’t resist the enjoyment or tour. The Tourism Police will help the tourists in of any emergency and will provide safety and security against criminals. The special Tourism Police will also guide the tourists for maintaining local law and order and help them on matters associated with medical, health, passport, visas, currency exchange, immigration issues and residential permits etc. The Tourism Police keep brochures, maps containing a list of attractions and important emergency numbers. There is also a first aid box and latest gadgets to communicate the local cops in the condition of an emergency. Any crime against tourists, whether international and domestic tourists, is registered with Tourism Police, in an emergency situation, Tourism Police converts its patrolling vehicles into an ambulance or a cab service to drop tourists to a hospital or their told destination. The training criteria of Tourism Police covers all associated subjects like hygiene, self-grooming, stress management, guidance management, leadership, motivation, social mannerism, basics concepts of the tourism and tourism action plan of the destination. In reality, there is no much difference between the special Tourism Police and general State Police. So it is logical to both that their work scopes are the same. So the special Tourism Police investigate cases within the specific law of tourist’s safety and security.
TABLE 2: Incident of Crime Committed Against Foreigners During 2014
449
S
(Bureau, 2015)
TABLE 3: Incidence of Cognizable Crimes under Crime against Foreighners (Crime Head Wise) During 2014
450
(Bureau, Chapter - 25, 25.2, Crime against Foreigners, 2015)
451
Deployment of Tourism Police For ensuring the safety and security of tourists, Ministry of Tourism, Govt. of India has advised to all state governments and Union Territory governments to deploy Tourist Police for improving better tourism environment in the whole country. The governments of Himachal Pradesh, Punjab, Delhi, Goa, Jammu and Kashmir, Andhra Pradesh, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Odisha, Rajasthan, and Uttar Pradesh have deployed Tourist Police according to Tourism Ministry. To prevent the crime, including crime against tourists, is the main responsibility of state governments and central government. Guidelines for the adoption of the code of conduct for safe and secure tourism environment have been released to hotels, guides, travel agents, tour operators, institutions involved in tourism and other stakeholders of tourism. Tourism ministry has issued a note to all Chief Ministers of states and Union Territories to take effective steps for ensuring safe and secure tourism environment for all tourists and also to request them to publicize the efforts being taken to improve the sense of security among prospective tourists. To respond effectively to the demand for tourism safety and security, maximum number of security personnel should be deployed to monuments, hotels and all tourism related areas. Conclusion The findings of this study hopefully will manage to bring attention to the role of Tourism Police for safety and security of tourists in across the country. Tourism Police play a much significant role to promote a crime-free, safe and secure tourism environment. Now we can say that the Tourism Police prevent robberies, snatchings, rapes, murders and various crimes against tourists and enhancing more safe and secure feelings among the tourists. They are also eloquent conversational in English, which made them to provide better services especially in the activity areas of tourists, unfair fee collection, crime prevention, forceful sales by the local tradesmen and other irritating activities. The work hours for Tourist Police at tourist destination should be from the opening hour of a tourist destination to the closing hour. The role of tourist police may seem very significant. They are the people, who are standing behind the tourists for solving all kind of problems and discomforts that tourists may have and improve the environment for them to enjoy. That’s why the Tourist Police department must be enacted and introduced as soon as possible in all states and union territories of the India. References
452
WTTC, T. W. (2014), Travel and Tourism Economic Impact 2014 India, ©2014 World Travel & Tourism Council: Rochelle Turner, Head of Research,
[email protected], . Bob McKercher, B., & Hui, E. L. (2003), Terrorism, Economic Uncertainty and Outbound Travel from Hong Kong,Safety and Security in Tourism: Relationships, Management, and Marketing , 99-115. Bureau, N. C. (2015),Chapter - 25, 25.2, Crime against Foreigners, New Delhi, India: National Crime Records Bureau. Bureau, N. C. (2015),Chapter-25, Crime against Foreigners, 25.1, New Delhi, India: National Crime Records Bureau. Chen, R. J., & Noriega, P. (2003), The Impacts of Terrorism : Perceptions of Faculty and Students, on Safety and Security in Tourism,Safety and Security in Tourism: Relationships, Management, and Marketing , 81-97. CHERRY, C., MOHR, A. H., LINDSAY, T., DIEZ-GONZALEZ, F., HUESTON, W., & SAMPEDRO, F. (2014), Knowledge and Perceived Implementation of Food Safety Risk Analysis Framework in Latin America and the Caribbean Region. Journal o f Food Protection , 2098-2105. Clifton, D. (2012),Hospitality Security: Managing Security in Today's Hotel, Lodging, Entertainment, and Tourism Environment (English). 2nd & 3rd floor | The National Council of YMCAs of India, 1, Jai Singh Road, New Delhi: Taylor & Francis Ltd. Coles, T. (2003), A Local Reading of a Global Disaster : Some Lessons on Tourism Management from an Annus Horribilis in South West England. Safety and Security in Tourism: Relationships, Management, and Marketing , 173-197. Cushnahan, G. (2003), Crisis Management in Small-Scale Tourism. Safety and Security in Tourism: Relationships, Management, and Maiiieting , .13.1-3.18. Fallon, F. (2003), After the Lombok Riots, Is Sustainable Tourism Achievable? Safety and Security' in Tourism: Relationships, Management, and Marketing , 139-158. Floyd, M. F., Gibson, H., Gray, L. P., & Thapa, B. (2003), The Effect of Risk Perceptions on Intentions to Travel in the Aftermath of September 11,2001,Safety atid Secutity in Tottrism: Relationships, Matiagetnetit, atid Marketitig , 19-38. Green, C. G., & Bartholomew, P. (2003), New York Restaurant Industry : Strategic Responses to September 11, 2001,Safety and Security in Tourism: Relationships, Management, and Marketing , 63-79. Hall, C. M., Timothy, D. J., & Duval, D. T. (2003), Security and Tourism:Towards a New Understanding? Safety and Security in Tourism: Relationships, Management, and Marketing , 1-18. Hassan Golkar, S. Z. (2014), Examine the Role of Social Police and Advertising in Attract Foreign Tourists (A Case Study of BAM, IRAN),Arabian Journal of Business and Management Review (OMAN Chapter) , 2-4. Kingsbury, P. T., & Brunn, S. D. (2003), Freud, Tourism, and Terror : Traversing the Fantasies, of PostSeptember 11 Travel Magazines,Safety and Security in Tourism: Relationships, Management, and Marketing , 39-61.
453
Korstanje, M. E. (2014), Influence of Terrorism in Horror Movies After the Attack to World Trade Centre,Journal of Hospitality & Tourism , 95-101. KUSSAGA, J. B., LUNING, P. A., TIISEKWA, B. P., & JACXSENS, L. (2014), Challenges in Performance of Food Safety Management Systems : A Case of Fish Processing Companies in Tanzania,Journal o f Food Protection , 621-630. Lovelock, B. (2003), New Zealand Travel Agent Practice in the Provision of Advice for Travel to Risky Destinations,Safety and Security in Tourism: Relationships, Management, and Marketing , 259-279. MacLaurin, T. L. (2003), The Importance of Food Safety in Travel Planning and Destination Selection,Safety and Security in Tourism: Relation.ships, Management, and Marketing , 233-257. Michaiko, G. (2003), Tourism Eclipsed by Crime : The Vulnerability of Foreign Tourists in Hungary. Safety and Security in Tourism: Relationships, Management, and Marketing , 159-172. Pandey, V. C. (2004),Environment, Security and Tourism In South Asia (Tourism Development in South Asia), 3rd Vol. (English), Vadodara, Gujrat: Isha Books. Prideaux, B. (2003), The Need to Use Disaster Planning Frameworks to Respond to Major Tourism Disasters : Analysis of Australia's Response to Tourism Disasters in 2001,Safety and Security in Tourism: Relationships, Management, and Marketing , 281-298. Ritchie, B. W., Humphrey Dorrell, H., Miller, D., & Miller, G. A. (2003), Crisis Communication and Recovery for the Tourism Industry : Lessons from the 2001 Foot and Mouth Disease Outbreak in the United Kingdom,Safety and Security in Tourism: Relationships, Management, and Marketing , 199-216. S., R. (2014), Evaluating and Understanding the Tourist Experience: An Empirical Study in Jammu and Kashmir, Enlightening Tourism, A Pathmaking Journal , 1-29. Santana, G. (2003), Crisis Management and Tourism : Beyond the Rhetoric,Safety and Security in Tourism: Relationships, Management, and Marketing , 299-321. Shiv kumar Sharma, S. (April 2014), Why the Taj Mahal Comes First and Agra Second?, Turnaround Through Employee Engagement Strategy, IRACST – International Journal of Commerce, Business and Management (IJCBM) , 286-296. Tarlow, P. E. (2014), Tourism security : strategies for effectively managing travel risk and safety,The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK: Butterworth-Heinemann is an imprint of Elsevier. Thapa, B. (2003), Tourism in Nepal : Shangri-La's Troubled Times, Safety and Security in Tourism: Relationships, Management, and Marketing , 117-138. VITALE, M., TUMINO, G., PARTANNA, S., CHIUSA, S. L., MANCUSO, G., GIGLIA, M. L., et al. (2014), Impact of Traditional Practices on Food Safety: A Case of Acute Toxoplasmosis Related to the Consumption of Contaminated Raw Pork Sausage in Italy,Journal o f Food Protection , 643-646.
454
SUSTAINABLE MARKETING: OPPORTUNITIES AND CHALLENGES IN INDIAN TOURISM INDUSTRY Nanita Tyagi, Deepa Shrivastava Abstract In the present age of globalization and standardization, the consumer is fully aware of the social and environmental concerns. After 1970, the issues of ecology and social concerns emerged as new challenges for the organizations. It is becoming difficult for the marketers to keep hold of the consumers. Many companies in India have started practicing sustainable marketing including tourism and hospitality firms. These firms have realized their responsibility towards better utilization of limited resources, enhancing the needs of the society with a provision for the future in addition with protecting the interest of their enterprise and stakeholders. Sustainable marketing is a new concept which takes care of all these issues and is gradually developing in India. The main objective of this paper is to introduce the concept, need and importance of sustainable marketing. The paper also explores the opportunities and challenges of sustainable marketing in tourism industry in India. This paper also focuses on how sustainable marketing activities can contribute to the development of tourism and its sustainability. Keywords: Sustainable marketing, Tourism Industry, India, Issues, Challenges, Marketing practices. Introduction Sustainability Marketing green goods and services was an add on strategy for the companies to attract the elite class of customers who are more conscious of environment. This marketing strategy was additional with the traditional marketing strategy where the business uses to concentrate on their core strategies. But now the scenario has changed, the firms are realizing the importance of green concept of goods and services has to be the core marketing strategy. The businesses are now redesigning and redefining their objectives. They are concentrating on the principles of marketing environmentally safe, socially acceptable and economically viable goods and services. Sustainability is the concept which works on triple bottom line – for people, planet and profit (Charter et al., 2006). Sustainability is meeting the needs of the current generation without compromising the needs of the future generation. The definition of United Nations World Commission on Environment and Development 1987 (the ‘Bruntland’ Commission) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. 455
Features of Sustainability Sustainability and its related issues has to be addressed by the international business community which are inter related. The effects of such issues are long term and also reflect the interests of the stakeholders. Issues related to the EnvironmentGlobalization has given multifaceted effects- positive and negative. The human activities after industrial revolution have influenced the climate and global warming. The rising temperature is the evidence of the green house effect.As said by Jowit & Wintour in 2008 that at least 2% of global GDP should be invested to meet the crisis created by global warming. The result is a severely unsustainable use of natural resources. India is experiencing the degradation of natural resources. Environmental sustainability includes making decisions and taking action that are in the interests of protecting the ecology, with particular emphasis on preserving the capability of the environment to support human life. It is one of the important issue at the present time, as people are realizing the full impact that businesses and individuals can have on the environment. Responsible business decisions can help in reducing the negative impacts on the environment. It could be developing the sustainable business processes. Issues related to SocietySociety is related to the people and the welfare of the people. It is about knowing the needs of the people and fulfilling it. But along with the needs, it is important to consider the effect of the actions of the businesses on the society. These effects could be positive embracing social change. It could help in adding wellbeing of the society. This is called socially sustainable business. Social sustainability is the identification and the practice of the such policies which manages the impact on the society. The business practices have effect on the employees, workers, the customers and the local communities as a whole. The socially sustainable practices can also benefit the business by allowing them to explore new products, new customers. Issues related to Economy ViabilityAs said by Arrow et al in 2004, Pezzey in 1992, Solow in 1993 and Toman in 1998sustainability is often thought to be achieved if the wellbeing of society is maintained over time. Economic sustainability is related that how the business should be economically sustainable, preventing the downfall and corporate premature death. Economic sustainability related to maintain performance of the company and its assets. It also assesses the wider economy, its influence on social and environmental impacts. Sustainable Marketing 456
Sustainable development requires “sustainable marketing” that is marketing efforts that are not only competitively sustainable but are also ecologically sustainable (Polonsky et al, 1997). Marketing is a long term activity which targets the achievement of certain pre defined objectives with broad plans. Sustainable marketing aims at getting more results using less resources. It is an application of strategies and policies which leads to growth in profits, addition in business efficiencies, increase in sales, and enhancement of customer loyalty. One of the objective can be employee welfare and lesser impact on environment. Sustainable marketing is a way of sustainable development and a holistic approach or marketing of products and services. It offers the companies to be more sustainable in meeting tomorrow’s challenges along with an appeal to meet the demands of today’s consumers. As per The Chartered Institute of Marketing (2006), the efforts of marketing team do not play an important and strategic role in driving the sustainability in their companies. But there are views that marketers can contribute to the Triple Bottom Line of sustainability by their practices.Sustainable marketing emphasizes on progress towards greater sustainability. It is a management concept focusing on the ‘triple bottom line’ approach by creating, producing and delivering sustainable solutions with sustainable value along with satisfying customers and other stakeholders.
FIGURE1. Framework for Sustainable Marketing (Peattie,1995,41) Sustainable Marketing in Tourism in India In India tourism is well accepted as an important contributor to the economy. It is a means to improve the economic conditions in rural and regional areas by providing additional sources of employment and income generation. It can act as a tool to balance fluctuations and downturns in primary industries such as agriculture and industries. The public private partnership in tourism can contribute to the enhancement of regional areas. Tourism also is promoted to maximize sustainable development of the society &
457
environmental quality. Tourism touches all the facets of the economy. Various initiatives have been taken by the hotels to develop and market sustainable products. ITC Hotels in India are pioneers in practicing sustainability since 1988. Resources are not scarce and we live in an over populated world. Water consumption, energy consumption and decarbonizes by their operations by using wind energy are some of the sustainable practices which helps in marketing its products. Hotels of ITC are the first chain in India to be certified platinum rated by US Green Building Council dedicated to sustainable building design and construction. The communication of such sustainable practices helps to develop sustainable products which attract customers who are more conscious about the environment and its impacts. Not only the well informed and educated customers but now a day every tourist is motivated by sustainable products. The communication of such products with all our stakeholders from staff to guests, even sharing our successes with other hotel chains is sustainable marketing. While a lot of hotels are taking positive measures to become environmentally friendly most of them are not properly structured steps undertaken without any long term plan and data to substantiate the investment thus preventing hotels from being able to fully reap their benefits. The main objective of these exercises is to be visible to the customers and project themselves as a green brand. Needs and Opportunities of Sustainable Marketing in Tourism in India India is a country with scarcity of resources and abundant of opportunities. The statistics and the forecasting show that India has a potential for coming up as a leading tourist destination in the world. Now there is shift seen in the choice of the tourist as India as a tourist destination. India has started attracting the educated and high end customers who adds value to the tourism industry. This shift in flow of tourist from mass tourist to the high class tourist looking for special interest tourism has opened many opportunities and challenges to the tourism personnel. But these customers are more responsible and are aware of the environmental concerns. The traditional marketing concept where the main objective was cost effective and better goods and services has to be changed to get the competitive advantage position which has to be different from others, desirable for the long term survival of the firm and defensible from other products and services. This ensures the need to get a balance profit earning which was the main objective of traditional marketing and to be socially & environmentally responsible. Sustainable marketing not only helps to get the competitive advantage over its competitors but it also helps in reduction of cost and leads to innovations. It is rightly said that companies cannot stay for longer in the market if they will not become truly sustainable (Whiting, 2008). But, there are limited companies in India industry which are adopting sustainable marketing practices. Although some of thehotels in India have started these practices but still there is lot to be done to make India a sustainable tourist destination. 458
Sustainable marketing can offer the incentives and growth possibilities. Initially the process of developing and marketing sustainable products may involve costs, but it will give long term benefits to the company. May be installing solar energy panels, rain water harvesting system or recycling of the waste process will involve huge costs but it will reduce the future costs and will help in the long term survival of the company. The increased use of sustainable marketing can help the company
To perceive it as an opportunity that can be used to achieve long term objectives. To market themselves as socially and environmentally responsible. Sustainability is enforced by many regulators and governments. Competitors initiating sustainable products and marketing forces to adopt such practices. Cost related to waste management etc forces to adopt these practices. Changed in the behavior of the customer from consumption to green consumption have opened endless opportunity to develop and market sustainable products. US is one of the top 15 markets in terms of foreign tourist arrivals. US customers are concerned with the product features and the sustainable practices of the services providers. By developing such sustainable products this market can be well tapped.
Currently marketing professionals are also focusing on sustainable marketing and it is the high time to initiate such marketing practices to compete with global competitors. Challenges in sustainable marketing – 1. Firms which are using green or sustainable products still find difficulties to position their sustainable products as premium products thus hampering their market penetration. 2. Compliance marketing approach to green marketing is another challenge which hampered the growth of sustainable marketing. In this approach, firms merely respond to provisions of law by complying with it. There is no initiative by the business to the concerns of environment and matters related to sustainability. 3. Conveying correct information and communication strategies need to be implemented specially in accommodation sector in tourism industry because unless and until the detailed explanation accompanied by a specific reason to a customer is not given for alter their behavior they will not do it. 4. Another challenge in sustainable marketing is to perform the activities in such a manner so that the interest of the enterprise and its stakeholders can be protected. 5. It is really a very crucial issue to engage and manage stakeholders in order to develop and implement sustainable policies. 6. Educating the customers regarding the importance of sustainability in tourism is also one of the challenges of sustainable marketing. 459
7. As the sustainable marketing strategy in tourism is based on protecting self, environment and contributing to the society as a whole practically it become quite difficult to conduct all their activities and frame their policies by taking all these three elements together. Recommendations and Suggestions: 1. Sustainable marketing must render organizational processes that has transparency, createsvalue and increases the product life cycle and reduces their negative effects on environments. 2. Sustainable marketing goes beyond the traditional marketing mix to include providing triple bottom line benefits, incorporate the social and environmental costs of products throughout the product life cycle, engage in customer cocreation of value and transparency. It also related to the finding of new distribution channels. 3. For sustainable marketing organization has to made commitments to a journey towards general sustainability goals. Organizations should also take cautions against making false or exaggerated claims about their efforts, and highlighted the reasons for clearly mentioning the successes and failures. To remain transparent helps in long-term survival of the company. 4. Sustainable marketing should emphasis its vision for continuous and quantified additions in the connections between the various environments and its processes. 5. SMO’s adopt goals and values that are infiltrated into every aspect of the organization, and known by all the stakeholders and the participants of value chain. 6. A sustainable marketing organization should develop such capabilities for effective acquisition and use knowledge, while maintaining the balance between the environments affected by the organization. 7. The SMO should also characterize by smarter, more efficient, less use of resources that contribute to the delivery of market offerings. Conclusion Although the concept of sustainable marketing evolved in 1990’s still the companies are in the phase of evolving the sustainable marketing practices. Marketers can paly an important role in embedding the concept of sustainability in their strategy which can add competitive advantage to them. India this concept has been realized by many companies in Tourism sector but still much has to be done by the government in the form of mandatory and non mandatory regulations and by the participation of the various stakeholders. References Andres EF Salinas EM and Vallejo JM (2009), Factors affecting corporate environmental strategy in Spanish industrial firms.
460
Bartiaux, Françoise (2008), Does environmental information overcome practice compartmentalisation and change consumers’ behaviours? Journal of Cleaner Production, 16, 1170-1180. Belz, Frank-Martin and Ken Peattie (2009), Sustainability Marketing: A Global Perspective, West Sussex: John Wiley & Sons. BioCycle (2010), Compostable Cup for Quick Service Chain, BioCycle, 51 (March), 6 Business Strategy and the Environment 18(8): 500-514 Aragon-Correa JA (1998), Strategic pro-activity and firm approach to the natural environment, Academy of Management Journal 41(5): 556-567. Buysse K and Verbeke A (2003), Proactive environmental strategies: a stakeholder management perspective, Strategic Management Journal 24(5): 453-470. Camino RJ (2007), Re-evaluating green marketing strategy: a stakeholder perspective, European Journal of Marketing 41(11/12):1328-1358 CCIF (2002), Analysis of the Status of Current Certification Schemes in Promoting Conservation, San Francisco, CA: Conservation and Community Investment Forum. Charter M Peattie K Ottman J and Polonsky MJ (2006), Marketing and sustainability. Available at: www.cfsd.org.uk/smart-knownet/ links/smart-know-net.pdf; (accessed: 12 January, 2011). Dolan, Catherine S. (2005), Fields of Obligation, Journal of Consumer Culture, 5 (November), 365-389. Dunn, Collin (2008), Introducing Clorox's Green Works Cleaners, 01.14.08, Epstein, Marc J. (2008), Making Sustainability Work, San Francisco: Berrett-Koehler Publishers. Fraj-Andrés E Martinez-Salinas E and Matute-Vallejo J (2008), A Multidimensional Approach to the Influence of Environmental Marketing and Orientation on the Firm’s Organizational Performance, Journal of Business Ethics 88(2): 263-286 Fuller, Donald A. (1999), Sustainable Marketing, Thousand Oaks: Sage Publications. Giddens, A. (1991), Modernity and Self-Identity, Self and Society in the Late Modern Age, Cambridge: Polity Press. Ginsberg, Jill Meredith and Paul Bloom (2004), Choosing the Right Green Marketing Strategy, MIT Sloan Management Review, 79-84. Greenley GE (1989), An understanding of marketing strategy, European Journal of Marketing 23(8): 45-58. Gunther Marc (2009), Inside Wal-Mart's Sustainability Index, July 14, 2009, [available at Hobson, Kersty (2001), Sustainable Lifestyles: Rethinking Barriers and Behaviour Change, inExploring Sustainable Consumption, Maurie J. Cohen and Joseph Murphy, eds., Pergamon/Elsevier, 191-212. http://www.fastcompany.com/magazine/128/cleaning-solution.html. http://www.greenbiz.com/blog/2009/07/14/inside-wal-marts-sustainability-index].
461
http://www.treehugger.com/files/2008/01/clorox-green-works.php Jones P Hill CC and Comfort D (2008), Viewpoint: marketing and sustainability, Marketing Intelligence and Planning 26(2): 123-130 Kamenetz, Anya (2008), Clorox Goes Green, Fast Company September 1, 2008, Kotler P and Lee N (2005), Worth Repeating, Social Marketing Quarterly 11(3/4): 91-103 Kotler P and Zaltman G (1971), Social Marketing: An Approach to Planned Social Change, The Journal of Marketing 35(3): 3-12 Leahy, Kate (2007), Local News, Restaurants & Institutions, 7/15/2007, 117 (11), 55-56. Lee, Evelyn (2009), Is It Green? Clorox Green Works, 08/12/09, Maignan I Ferrell OC and Ferrell L (2005) A stakeholder model for implementing social responsibility in marketing. European Journal of Marketing 39(9/10): 956-977 Munier N (2005), Introduction to sustainability: road to a better future. Springer Netherlands Polonsky MJ (1995), A stakeholder theory approach to environmental marketing strategy, Journal of Business and Industrial Marketing 10(3): 29-46Polonsky MJ (2001) Re-evaluating green marketing: a strategic approach, Business Horizons September-October: 21-30 Prothero, A. (1990), Green consumerism and the societal marketing concept: marketing strategies for the 1990s, Journal of Marketing Management, 6 (2), pp. 87-103. Slater SF and Olson EM (2001), Marketing’s contribution to the implementation of strategy: an empirical analysis, StrategicManagement Journal 22(11): 1055-1067 Somayajulu Garimella, Uday Bhaskar, Sustainable Marketing in the emerging markets with specific reference to Indian companies Varadarajan R (2009), Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises, Journal of Academy of Marketing Science 38(2): 119-140 World Business Council for Sustainable Development Report, Driving Success-Marketing and Sustainable Development, 2005. World Commission on Environment and Development (WCED) (1987), Our Common Future: Brundtland Report available at: http://www.worldinbalance.net/intagreements/1987-brundtland.php; (accessed: 1 December, 2010) Zinkhan GM and Pereira A (1994), An overview of marketing strategy and planning, International Journal of Research in Marketing, 11(3): 185-218
462
USE OF INTERNET IN TRAVEL AGENCY MARKETING (CONCEPT PAPER) Prateek Sapra, Research scholar, IITTM, Gwalior Abstract: Travel agency is a organization which provide access to all travel products under one roof. Globalization has changed the trend in every sector, nowadays customers wish to receive maximum service with minimum wastage of time so travel agency business has captured by online travel agency portals in recent past. In this era of tough competition, it is recommended to create a user friendly website along with awareness among customers through different marketing tools. Data were collected by multi-methods approach both primary and secondary resources were involved. The findings of the research indicate that digital marketing work as booster for travel agency business. Finally, the concept paper provides useful findings for industrialists to improve the existing policies. Use of Internet in Travel agency marketing Travel agency is a organization which provide all travel products under one roof whether you are looking for Air ticket, Hotel booking, Train ticket, Cruise ticket, Holiday package etc. Travel agent will do necessary research work and assist you with best available options. Travel agency also play vital role in promoting tourist destinations (Dogra, 2011). If we look virtually we find that trend has changed in recent past. Now consumer don’t bother to visit travel agency or travel consultant who can assist him to plan his trip rather consumer today expect to browse, research, solicit feedback, evaluate and push the “Book” button. Consumer has also become brand oriented because brand gives them mental satisfaction that he will receive good service for sure and majority of business is captured by few organizations. In this era a tough competition it become very difficult for new company to step in or survive in industry, they have to think out of the box. Building strong consumer relation require lot of planning along with strategy and marketing tools for example, they must create user friendly website, must interact with customer on regular basis in order evaluate and adhere their valuable feedback, must design different type of itineraries to attract potential consumers. Marketing messages through text message or e-mail play vital role in maintaining a customer as it cost more to make a new customer as compare to maintaining an old customer. Organizations must formulate marketing strategies and formulate objectives or they may seek assistance from marketing organizations to plan digital marketing model. 463
Since these big brands provide bulk number of bookings to Hoteliers and Airlines hence Airline or Hoteliers also provide good amount of commission to them. Hence, small travel won’t able to beat their price and loose potential business in order to convince customer to try services of a new comer instead of his old brand require lot of marketing and personal selling skills. Travel agent also plays an important role in making dreams possible. Selling a holiday package is just like selling a dream to customer, since customer neither see or feel the travel products before buying it as these are non-perishable products.Travel agent has to create a picture of destination in customer’s mind while explaining the product. Here are the few steps which travel agent must follow while planning business strategy. •
Design of website – Keep in mind that entire population is not literate enough, design a simple and user friendly website which everyone can use easily.
•
Mobile website / Application – Most of users today use smart mobile phones in order to access any information, so designing mobile website or application has become equally important.
•
Work with travel aggregators – Millions of travelers buy travel products from travel aggregators website like kayak, trip advisor etc. Although its chargeable to list yourself on these websites but it is quite fruitful to access large and potential audience.
•
Work on specialization – Since lot of suppliers are already available in market for every product, hence target a potential area and become specialize for that particular product.
•
Offer excellent customer service – It is easy to maintain an existing customer rather than attracting new one, it is equally important to make sure that customer is enjoying the service offered by you. Example- Just give a buzz while customer is on trip to make sure that everything is fine or take his feedback post completion of trip.
•
Be active on social media – This is the best way to access large number of population, keep posting about your product features, updates and services on social media websites.
•
E-mail – E-mail is one of the leading marketing tool, ask for e-mail address from every customer and keep posting them about your new products, upcoming events etc.
464
•
Blog – Ask your customers to write a blog about your service or product as you will get to know about customer’s appreciation and dislike about particular product, which helps you to rate that supplier accordingly.
•
Offer Memento – Offer memento to every customer so they must remember you even after completing their trip.
Usually it has observed that most of travel agents focus on selling what they have rather they need to focus on demand of customer and supply what they are willing to consume. There comes the difference between selling and marketing. Appearance matter a lot in terms of business since today’s industry is based on online transaction so it has become crucial to work on development of website as website describe the profile and potential of company. Website has to be user friendly with no hidden information. Developer also needs to work on search engine – suppose you have good air fare deals but people don’t even know who you are and where you are, you need to contact search engine and need to avail their service so that it will become easier for peoples to find you. The most popular search engine use worldwide is google and they charge per user click.Search engine capture data through crawler, index, snippet or HTML information provided during designing website. Service provider must clear services or products offered by them as single agency cannot specialize in every field. Agency must clear their goals and tell customer who they are and what they serve, just increasing publicity or getting popularization among social media is not going to help them they need to set their goals first. Business Analyst Analyzing business also play a crucial role in development of business, how much comfortable do consumers feel using your website? Are they facing any issues, what is growth/decline rate of sale a why? How can you improve your website? How can you attract more consumers to purchase from you? What attract consumer and where are you lacking? In what terms your rival is competing you and ways/ remedies to come out of this? Business analyzing plays a crucial role in business growth regular analyzing of business is very important. Business can be analyzed by several ways like amount of revenue generated vs amount spend on marketing, search engines, toll free number etc. it is a team work where coordination among several departments – it, marketing, sales is must required.
465
Analyzing can also determine from market potential / buyer behavior. Business analyst must check below points
Number of visitors visiting their website (Graph) Pages viewed by visitors Time spent on website (visitor sessions) Conversion sale Bounce rate – Visitors come and leave website quickly Exit rate – Visitors who come and exit after just watching 1 or 2 pages Analyze segment of visitors – Old, New, Repeat visitors Type of traffic receive by website – Paid traffic- Visitors coming through paid sources like pay per click, campaigns, advertisements or Non paid Traffic – Visitors coming through free of cost search engine, referrals
Next step of Business analyst is to prepare reports
Most popular product sold on our website Analyze rival company prices vs our price (for all products) Analyze feedback taken from client (How to improve website) Top 10 pages preferred by viewers Increase percentage in repeat visitors Segment the potential buyers
After collecting data and preparing reports Analyst can analyze pros and cons and can help operations or marketing team to increase productivity. Once marketing team will get to know marketing policies of rival company they will able prepare strategy to beat them. Operations team can set goals and start working on defects in website along with technical or IT team. Operations team can collect data and make cold calls to Exit or bounce customers, even if they won’t able to convert sale they will still get to know the reason of denial by customer which will again help technical team to develop website. Marketing Internet has change the trend of sales and marketing; I had observed usually companies insist on selling/promoting products in which they have good deal / profit margin. They don’t even bother to know what customer is looking for. Some customers are psycho-centric they just need what they are looking for spending lot of money to attract customer is of no use. So before planning marketing strategy analyst must try to know the need / potential of market. Example – promoting corporate deals in a residential area doesn’t make any sense.
466
Analyst may conduct surveys (online/offline), refer to researches. What required is to understand the market their needs and provide resolution to the needs by delivering what they are looking for. Creating urgency is equally important like I have seen on most websites alert – last 2 seats left, sale – last day to book with discount. If we don’t create urgency, then buyer will not take it seriously and make further search on other websites and we may end up with no sale even after spending lot of money on marketing. Seller also needs to keep in mind that offering lot of options may give him trouble like I had seen a customer in flight shop looking for a flight from Delhi-Mumbai for 21st of next month, Executive offer him 2 options i.e. morning flight for Rs.5000/and Evening for Rs. 4900/- customer agreed to buy evening flight then suddenly Executive offer him 3rd option which is a late night flight for Rs.3600/- then customer ask him to wait as he wish to contact his family now so customer suddenly change his mind and advice him that he will get back to that executive then executive try to pitch him lot of rebuttals like fare is subject to change, last seat left but customer simply said he need time to think and hang up. So moral of the story is to not to offer too many options to customer as it may puzzle his mind and you may end up with no sale. Role of content in E-marketing Always mention content relevant to your business only. You need to have clear vision / audience target in your mind before implementing marketing techniques. Keyword similarly play important role in content building as most of search engines are looking for relevant content to offer to their users so make sure that you use appropriate keywords while designing snippets, crawlers, index of website. Avoid using industry jargons while designing keywords focus on what customer think while looking for products offered by you. Suppose customer just type cheap flight and you had mention economical air tickets in your snippet, then you know the result. Tools like Google webmaster tools, Firefox free tools can also guide you to improve crawling of your site on search engines. It is not mandatory that you always have to pay to search engines to list your name only few top links pay to search engines rest of them are found by search engines from their keywords itself. Content is portfolio of your products which may include images, audio, video gallery. Customer reviews also matter a lot in rapport building you must have seen many aggregators and blog sites like tripadvisor where customers share their feedback it helps as one of the core element of marketing similarly social media websites like facebook, twitter, linkedinetc also work as a power booster to attract potential customers but make sure to stay active on these sites and revert back to all queries.
467
Architecture of website also play vital role and may impact sales of website, Don’t make your home page a destination rather makes it a navigation and introduction page with links to different products and company services like flights section, hotels section, holiday packages, about us etc Don’t just let your customers buy and bye rather make your website more innovative one offer free advice as well like where to go in which season, famous spots of a particular destination, how to reach and present information in a innovative way offer audio search option, image map links, text zoom, focus on color and contrast combination too and offer material in a pdf file to make it easily accessible to users. Proper designing not just help in increasing sale rather it will help you in improving ranking of your website as well. Post starting social media advertisement, information content, appropriate keywords, proper architecture you start analyzing increase in sales conversion of your website very quickly. These tools will give you fruitful results in coming future. Conclusion Travel industry has completely change from a room with travel products to a portal with all travel needs. Nowadays customer don’t wish to spend lot of time in queues to buy rail tickets, bus tickets or they don’t even bother to visit travel agent office to seek advice rather today’s customer trust on user friendly travel websites which result into establishment of end number of travel websites. So in this competitive era it has become very difficult for a newcomer or small travel agent to beat the existing travel agent. This research paper provides several ways to stand out of the mob using different electronic tools and ways to gain popularity online which include lot of things like design of website, use of travel aggregators, customer relationship management techniques, Email marketing, social media marketing, website architecture, role and importance of Business analyst, Marketing, Technical and IT team in a travel agency References Dogra, Jeet. (2011). Climate Change. Published in Real Reporter Magazine, International Edition, No. 14, Dated: July 6, 2011; Published by the Post-GP-ICT Project Team of University of Shimane, Japan. Singh, R. (2008), Tourism Marketing: Principles, Policies and Strategies, Delhi: Kanishka Publishers Distributors. Bailey, M. (2011), Internet marketing: an hour a day, John Wiley & Sons. Mishra, M.N. (2014), Sales Promotion and Advertising Management, Delhi: Himalaya Publishing House.
468
