LITERATURE REVIEW

ON
IMPACT OF E-TAILING ON RETAILING

•Spiller, P., Lohse, G. (1997) completed work on “A

Classification of Internet Retail Stores”. Their work presents a
classification of on-line retail stores based upon convenience
sample of 137 Internet retail stores. Their research identified
five different on-line store design strategies: Super Stores,
Promotional Stores, Plain Sales Stores, One Page Stores and
Product Listings. They differ mainly in terms of the store’s size,
the quantity of extra information and appetizers, and the
interface design including consistency, page lengths, image
sizes and navigation capabilities.

•Alba, Lynch, Weitz, Janiszewski, Lutz, Sawyer and Wood

(1997) suggest that a key difference between online and
offline shopping is the ability of online shoppers to obtain
more information about both price and non-price information
as a result of reduced search cost. Because consumers are able
to obtain more price information online and compare across
online retailers with a few clicks, they are more likely to shop
online when the price of a product is high rather than low as it
saves consumers from having to go out to acquire the cheaper
options.
•Kolsaker and Payne (2002). studied gender based trust
concerns in e-commerce. They have done survey of 150
people split 75 male and 75 female by using convenience
sampling. They found that gender did not influence trust
levels in online shopping. They break down online trust into
three elements--security, integrity and confidentiality. They
identified that consumers are concerned with the security of
payment details online. They also found that consumers are
also concerned with confidentiality in terms of the privacy of
personal information given over the Internet.

•Chiang and Dholakia (2003). carried out a survey amongst

147 adults to examine consumers' intention to shop online
during the information acquisition stage. The study
incorporated three essential variables that were likely to
influence consumer intentions: a) convenience characteristic
of shopping channels, b) product type characteristics, and c)
perceived price of the product. They found that convenience
and product type influence consumer intention to engage in
online shopping. When consumers perceived offline shopping
as inconvenient, their intention to shop online was greater.

•Colby, D. (2004). studied E-Retailing: The Real Story. Their

objective of the study was to highlight some of the
considerations and concerns of creating an E-Retail business.
They found that the industry will continue to grow and offer
tremendous opportunities to the entrepreneur that is willing
to invest the time and effort required to make a business a
success. They found that the Internet can be fun and offers
the challenge of an ever changing environment.

•Plessis, P., Mostert, P., North, E. (2004). studied Period of

Internet Usage: An Indicator of the Buying Behavior of
Internet Users. They have studied the relationship between
the Period of Internet usage and Online buying pattern of
Consumer. They have used data collection method and 1005
responses were received. They found that the period of
Internet usage significantly influenced the decision to
purchase via the Internet. Another finding was that the period
of Internet usage significantly influenced whether those
shopping on the Internet searched for, or considered
searching for, product and service information online prior to
purchasing from non-Internet-based sellers.

•Asim, M., Hashmi, Y. (2005). completed work on E-LOYALTY.

The purpose of the study was to gain deeper understanding of
how to create loyal customers on website .They have adopted
case study approach to investigate two website. The data
were collected through Personal and Telephonic Interview.
They found that companies providing online service must first
identify the means to increase the overall Interactivity of their
website and then begin to consider towards customer loyalty.

•Maarten C.W. Janssenand Rob van der Noll (2005). studied

Internet retailing as a marketing strategy from Erasmus
University Rotterdam and Tinbergen Institute. s incentives to
sell online and Their study provides a theoretical framework
that analyzes firm’the extent to which consumers will
substitute the Internet for the conventional retail channel.
The research reveals that the main reason consumer prefer to
purchase online is the fact that they do not have to travel a
physical distance. Factors like payment method, delivery time
play a vital role for the consumer to decide whether to choose
online or from traditional shopping.

•Wang, M. (2005). has done a research on A study on B2C

consumer behavior model from Department of Industrial
Engineering and Engineering Management, National Tsing Hua
University. The purpose of this study was to develop a
complete and detailed consumer behavior model for B2C
electronic transactions. He has developed a B2C consumer
behavior model, the Ten-Step Model which was completely
highlighting the important steps during e-shopping. He has
suggested that the service providers must focus from the
consumer’s point of view instead of from seller’s point of
view.
•Rotem-Mindali, O., Salomon, and I. (2006). have studied The
impacts of E-retail on the choice of shopping trips and
delivery: Some preliminary findings. The objective of the study
was to develop a conceptual model of the decisions
households make with regard to information gathering,
purchase transactions and delivery mode. To collect data, they
have developed a structured questionnaire and respondents
were asked to assess a large variety of aspects concerning
their shopping habits, preferences as well as attributes
concerning their accessibility to and usage of IT-based
applications. They found that a number of respondents use
internet to collect the information before purchasing product.
Study also revealed that the major reason to purchase online
was the cheaper price of the product followed by busy
schedule.

•Collier, J., Bienstock, C. (2006). studied Measuring Service

Quality in E-Retailing. The objective of the study was to
develop a framework for how customers judge e-service
quality by looking at quality evaluations in the process,
outcome and recovery of a service experience in e-retailing.
For the same, they have developed a questionnaire containing
three major sections. They have done the survey of 266
respondents. In Section 1, the respondents were asked to
recall the last transaction that they have made with e-retailer
and questions related to the process and outcome quality
were asked. Section 2 asked the respondents to respond to
service recovery questions if they had experienced a problem
with their transaction. Section 3, which asked
satisfaction,behavioral intention, and demographic questions.
The result revealed that process quality of an e-service
experience plays a crucial role in the overall evaluation of e-
service quality. So service providers need to be aware that a
bad experience in the e-service process can have a ripple
effect with subsequent evaluations of the service experience.
If a customer has a bad experience in regards to the
interactivity or functionality of the website, then a customer
might make an overall eservice quality judgment even before
a transaction took place.

•Mostaghel, R. (2006). studied Consumer Satisfaction: Service

Quality in Online Purchasing In Iran. They have conducted a
survey of 500 respondents with the help of Questionnaire.
They have studied the most dimensions of service quality that
affects consumer satisfaction in online purchasing in Iran.
They found that the most important factor in service quality is
fast access followed by design of website and 24*7*365 user
accessibility and brand image of service provider.

•Xuan, W. (2007). completed work on Factors affecting the

achievement of success in E-Tailing in China’s retail Industry: A
case study of the Shanghai Brilliance Group. In his research he
studied how is e-tailing being used in the Shanghai Brilliance
Group. He also studied the barriers to the implementation of
e-tailing in the Shanghai Brilliance Group and factors for
achieving successful e-tailing in the Shanghai Brilliance Group.
The major findings were e-commerce is poorly implemented
in the Shanghai Brilliance Group and its subsidiaries. He also
found nineteen barriers that can be further divided into two
categories, namely, external barriers and internal barriers for
the implementation of e-tailing in the Shanghai Brilliance
Group. Major external barriers to e-retailing were high cost of
internet access, lack of efficient payment facilities and banking
services, advanced retail network and lack of trust towards e-
retailer. Major internal barriers were senior management
commitment to e-commerce, knowledge towards e-
commerce, IT expertise, profit objective and organizational
culture.

•Sinha, P., Kar, S. (2007). studied An Insight into the Growth

of New Retail Formats in India. Their study investigates
modern retail developments and growth of modern formats
and challenges and opportunities available to the retailers to
succeed in India. They conclude that it is not all about deciding
the format but all about serving the consumer better, faster
and at less cost. The most important issue in e-tailing is
credibility and trustworthiness of the supplier. They added
that consumer is the focus of retail business and the retailers
should serve the consumer better, faster and at less cost.

•Araghchi, S. (2007). studied Service quality, customer

satisfaction, customer experience and behavioral intention in
Iranian retail store. The objective of the study was to
investigate and determine the nature of service quality
construct and its relationship with these of Customer
Satisfaction, Customer Experience and Behavioral Intention.
The study also aim to identify which dimension that is best
predictor of service quality, in terms of generating the
outcome that identifies the dimension regarding service
quality in Irani Retail store. The researcher has done the
survey of 500 respondents with the help of questionnaire as a
data collection tool. The major findings were reliability of the
store and its service plus responsiveness are the most
important dimensions in compare with other three
dimension.

•Brown, B., Oleksik, G., Bisdee, D (2007). studied Consumer

attitude review internet shopping. The aim of the research
was to establish how consumers perceive the internet as a
sales channel, the reasons for using it or not using it, how
consumers use the internet to purchase goods/services and
their experiences of such use. The study investigates the
factors affecting internet purchasing behavior such as
consumer attitude, belief, personality, nature of website and
so on.

•Devendra P.S (2007). has done study on Is Retailing in India

Boon or Bane. He has done the study with the help of
secondary data. He found that rising disposable income in the
middle class and lower middle class with an increase in
employment opportunities for young adults in IT and IT
enable sectors are the major reasons for growth in retail
sector in India. He added that along with serving the needs of
upper class people, organized retailers should also focus on
satisfying needs of lower class people too.

•Tractinsky, N., Lowengart, O. (2007). studied Web-Store

Aesthetics in E-Retailing: A Conceptual Framework and Some
Theoretical Implications. Their study examines the role of
aesthetic design in Web-based stores. They found that web-
store designer should take into consider both classical and
expressive dimensions at a time of developing website. The
classical dimension was associated with clean and orderly
design and with user perceptions of the website’s usability.
While expressive dimension represent designs
perceived by users to be original and creative. The website
aesthetics should be designed by focusing on type of
merchandise they sell and type of customer they target. So e-
retailers should tailor their web-store design according to the
combinations of consumer and product characteristics.

•Mohanty & Panda (2008). opines about retailing as a sector

of India occupies important place in the socio-economic
growth strategy of the country. India is witnessing retailing
boom being propelled by increasing urbanization, rising
purchasing power parity (PPP) of ever growing India’s middle
class, changing demographic profiles heavily titled young
population, technological revolution, intense globalization
drive etc.

•Srivastava, R. (2008). studied Changing retail scene in India.

The purpose of the study was to study changes in retail taking
place in India in view of many MNCs and large industries
entering into this segment. He has used secondary data for
the study purpose and collected data from industry sources
which included national and international published sources
from 1993-2006. He found that there is an impact of modern
retail on traditional retail players. He added that malls with
multiplexes such as cinema theatres, food courts, and play
places for children are becoming the centre for family outings.
He further said that small retailers have also improved their
service to stay in the competition. Services like credit limits
and home service are helping them to hold on to their
customers.
•Joseph, M., Soundararajan, N., Sabu, S. (2008). studied
Impact of Organized Retail on Unorganized Retail. The
objective was to study impact of organized retail sector on
unorganized retail sector. They have collected data from 2020
unorganized small retailers across 10 major cities; 1318
consumers shopping at both organized and unorganized retail
outlets; 100 intermediaries; and 197 farmers. Detailed
interviews were also carried out for 12 large manufacturers,
20 small manufacturers and six established modern
retailers. The major findings of the study show that
unorganized retailers in the vicinity of organized retailers
experienced a decline in their volume of business and profit in
the initial years after the entry of large organized retailers.
The adverse impact on sales and profit weakens over time.
There was no evidence of decline in overall employment in
the unorganized sector as a result of entry of organized
retailers. They further added that there is competitive
response from traditional retailers through improved business
practices and technology upgradation.

•Othman, N. (2008). studied Integrating consumer trust in

building an e-commerce website. His research aims to find a
practical solution on how to integrate trust during the design
and development process of an e-commerce website. The
research examines consumers’ trust and behavior by
understanding the concept of trust, reviewing several trust
related models, mechanisms. He found that consumer
characteristics have direct influenced on consumer purchasing
intentions while web merchants should have trustworthiness
characteristics such as ability, integrity and benevolence for
consumer to evaluate and decide.

•Akash (2009). says that Retail business in India, as anywhere

else in the world, plays a crucial role in an economy. Retail in
India has the potential to add value over Rs 2,00,000 crore
($45billion)business by the year 2010 generating employment
for some 2.5 million people in various retail operations and
over10 million additional workforce in retail support activities
including contract production and processing, supply chain
and logistics, retail real estate development and management.
Gibson, CEO Retail Association of India opines (2007) that
modern retailing today is growing faster than expected while
the current growth rate is around 30 percent, the sector is
expected to grow at 40- 50 percent on a year basis.

•Delafrooz, N., Paim, L., Haron, S., Sidin, S., Khatibi, A. (2009).
studied Factors affecting students’ attitude toward online
shopping. The aim of their study was to examine the
significance of attitude toward online shopping. They have
adopted questionnaire as a data collection tool and done
survey of 500 post graduates students with the help of
random survey. They have studied factors related to online
sho Hedonic orientation) and perceived benefit (includes
Homepage, Wider selection, Price, Customer service, fun) that
affect attitude toward online shopping. The findings suggest
that utilitarian orientations, convenience, price and wider
selection are an important determinant of consumer’s
attitude toward online shopping.pping orientation (includes
Utilitarian Orientation and

•Chari, A., Raghavan, M. (2010). studied Foreign Direct

Investment in India’s Retail Bazaar: Opportunities and
Challenges. The study was based on secondary data. The study
found that the potential benefits from allowing large retailers
to enter the Indian retail market may outweigh the costs.
Entrance of large foreign discount store retailers could help
tackle inflation. Technical know-how from foreign firms will
improve supply chain in India.

Dash, M. (2011). studied Next-Generation Retailing in India:

an Empirical Study Using Factor Analysis with objective to find
out the factors of next-generating retailing. The questionnaire
was designed to collect data. 200 samples were selected with
simple random sampling method from Visakhapatnam. He has
analyzed 14 variables for study purpose and with help of
factor analysis method; he has developed three groups which
include technology, innovative format decision and Customer
Centricity. On the basis of analysis, he defined `Next Retailing'
as "the newer and younger generation of organized retail
industry evolution which is multidimensional and far more
advancedthan its previous generations.

•Howes and Davies (n.d.). argued that three purchasing

activities: search for products, management of search criteria,
and comparison of found products, are important for Internet
shopping., Bickerton,B. ,Pardesi et al. (2000) note that not all
products and services are equally suited to be sold via the
Internet.

•Greenbury, in Maruca (1999) supports this view by stating

that people will increasingly want to shop on the Internet for
at least a certain range of products because of convenience.
Therefore, marketers are interested in understanding the
relationship between a consumer’s choice of channel and the
information search via the Internet.

•Zaveri, B. (n.d.). has done study on Online versus offline

shopping activities of female internet users in selected cities
of Gujarat. She has conducted her study in four major cities of
Gujarat which are Ahmadabad, Surat, Vadodara and Rajkot
with 650 respondents participating in it. The findings of the
study revealed that female shoppers in Gujarat prefer to buy
books, flowers, computer software, book railway tickets and
do banking through internet. When it comes to products like
clothes, accessories or shoes, female buyers use internet to
collect primary details only, but opt to buy them from the
store instead of placing an order online.

•Tripathi, A. (n.d.).studied Emerging trends in modern retail

formats & customer shopping behavior in Indian scenario: A
Meta analysis & review. The objectives of the study were to
explain the emerging trends in the development of Modern
Retail formats in Indian Context and the Consumer Shopping
Behavior among the Modern Retail Formats with special
reference to Delhi & NCR. The empirical data has been
collected with the help of secondary data as well as Primary
resources by taking the interview of shopkeeper from selected
malls. He has also studied the Factors affecting shoppers’
behavior. The outcomes of the study were Indian consumers
are still family-driven entities and more sensitive to quality,
customer service and status. Study also revealed that
Retailers would have to provide new delivery formats and
value shopping to customer. It is also observed that in the
changing retailing environment, understanding the psyche of
customer is critical to success in retailing.

•Albarq, A. (n.d.). studied Intention to shop online among

university students in Jordan.The aim of the research was to
study the acceptance level of internet shopping among higher
learning institution particularly in Jordan. The study
investigates possible factors that influence consumer Internet
intention towards students’ online shopping behavior in
Jordanian university. He has analyzed factors like usefulness
and ease of use that influence students buying intention. He
found the relationship between perceived usefulness and
attitude was positive and there was also a positive
relationship between perceived usefulness and intention to
shop.