PRE-LAUNCH SURVEY OF EXTENDED SHELF LIFE …pezzottaitejournals.net/pezzottaite/images/ISSUES/IJLSCMPV3N4.pdf · Gagangiri Table Butter, Gagangiri Ghee (Agmark), Gagangiri Shrikhand

Volume 3, Number 4, October – December’ 2014

ISSN (Print):2319-9032, (Online):2319-9040

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International Journal of Logistics & Supply Chain Management Perspectives © Pezzottaite Journals. 1284 |P a g e

“PRE-LAUNCH SURVEY OF EXTENDED SHELF LIFE PRODUCTS IN NASIK CITY”

AT S.R. THORAT MILK PRODUCTS PRIVATE LIMITED, SANGMNER

Dr. D. B. Bagul1

ABSTRACT

This research is carried out at the S. R. Thorat Milk Products Private Limited, to study the perception of retailers and

customers about the company and its products.

KEYWORDS

ESL‚ FAT‚ SNF‚ PFA‚ APEDA‚ FDA‚ Survey‚ Segmentation‚ Satisfaction‚ Consumer‚ Customer‚ Preservation etc.

INTRODUCTION

Today's marketing is highly customer oriented, it is important to satisfy the needs and wants of people better than the competitors

owing to cut throat competition, technology changes and advancement, changing customer, tastes and preferences, shrinking

product life cycle and squeezing profit margin. Hence, company does not want to lose their market base. To enhance their market

share and widen their customer base it is essential to understand the consumer psychology. By understanding consumer behavior,

the marketing strategies, which adapt changes according to market dynamics, can be formulated. To verify and check the

effectiveness of marketing strategy, marketer should understand the consumer profile and their preferences well in advance.

THE ESL PRODUCTS

Packing Milk

Milk is the “Nature's Perfect Food” for all ages. It has almost all the vital nutrients need for the growth and well-being of the

human body. Milk is the richest natural source of calcium and essential amino acids, which is good for bone formation. It is

particularly beneficial for people recovering from sickness, for sportsmen, for old people, for pregnant women and for growing

girls and boys. The doctor recommends a minimum daily intake of 250ml or more for every person.

Normal cow milk has 3% Fat and Buffalo has 7% Fat. There is another important constituent of milk is Solids Non Fat. This (or

SNF as) it is commonly called) comprises of proteins, minerals, carbohydrates and vitamins. For milk to be nutritionally balanced,

it has to contain both Fat and Solids Non Fat in the proportion. The PFA act lays down standards of Fat and SNF for various types

of Milk as follows:

Table-1

Product FAT SNF

Toned Milk (Om Sai) 1.5 % Min 9.0 % Min

Full Cream Milk (S.R. Thorat) 3.5 % Min 8.5 % Min

Sources: Authors Compilation

Full cream varieties: S.R. Thorat Milk strictly confirms to PFA standards. In fact, company keeps the standards higher to

abundantly comply with the legal requirements and to provide wholesome nutritive food to our consumers. This means that

consumers buys S. R. Thorat Milk they are sure to get the Nature’s Perfect Food for their families. Consumers are sure of getting

Milk, which has longer life because of superior bacteriological quality and state of art processing technology. The loose milk

available from local vendors often does not confirm to PFA standards. It often has less fat and less Solid Non Fat then required

besides, it is not uncommon to find artificial preservatives, which are not permitted by law being added to lose milk.

Milk Products

The SRTMPL product range missions of S.R.Thorat Cow Milk, Om Sai Double Toned Milk, Gagangiri White Butter (Agmark),

Gagangiri Table Butter, Gagangiri Ghee (Agmark), Gagangiri Shrikhand and Amrakhand, Gagangiri Skimmed Milk Powder,

Gagangiri Whole Milk Powder, Gagangiri Dairy Whitener, Gagangiri Malai Parmer, Gagangiri Flavoured Milk in 13 flavours,

Gagangiri Lassi, Gagangiri Butter Milk and Milk and Gagangiri Khao. At SRTMPL, Latest technology coupled with a unique

culture of hygiene also delivers a range of premium milk products.

1Director‚ R.J.S.P.M., Institute of Computer and Management Research, Maharashtra, India, [email protected]

mailto:[email protected]





Butter and Ghee

Using the latest Alfa Laval Butter Chums of capacity 5,000 liters and 1,000 liters. Finest quality table butter and white butter are

produced. The butter is stored in exclusive temperature controlled cold room at- 20 degrees. Similarly, Ghee is manufactured by

the latest technology and under hygienic conditions using Alfa Laval Ghee boilers of 1,000 liters. In addition, 1,500 liters

capacity.

Shrikhand and Lassi

Every care is taken to keep the freshness and flavor intact in its Shrikhand and lassi, now a delectable treat gaining in popularity

day by day. While imported culture is used to get the natural flavor of curd the mixing of sugar, natural flavor and colours are

added in an automated process. The packaging of Shrikhand in cups and Lassi in pouches is handled on state-of-the art Nichrome-

2500 machines.

Milk Powder

The fully automatic Milk Powder plant of S.R. Thorat Milk Product Private Ltd. is erected and commissioned by Alfa Laval,

Sweden using the latest technology. Four types of powder, whole milk powder, dairy whitener and ice cream mix powder are

manufactured under complete hygienic conditions.

SRTMPL enjoys a manufacturing capacity of 5 MT powder per day. The products are approved by FDA Authorities and hold

APEDA license of Exports.

OBJECTIVES OF STUDY

The main objectives of the research were as under:

To study the market share in served market area of Nashik region‚ Maharashtra.

To study the perception of Retailers & Consumer about the company.

To study the perception of Retailers & Consumer about shelf life product

To study the expectations of retailers and buyers.

To give recommendation and suggestion based on findings.

METHODOLOGY OF RESEARCH

Design of Study

Research Methodology is a way of systematically solves the research problem. It may be understood as a science of studying how

research is done scientifically. In it, we study various steps' that are generally adopted by a researcher in studying his research

problem along with the logic behind them.

Need of the Study

Discussed with Mr. Ravindra P. and Rajendra P., Managing Director, as instructed by him & discussed with other department

head regarding to study the market share and perception. Company's M.D. is interested was in knowing the prevailing market

condition and perception of customers in the Nasik City. The company was interested in the aforesaid topic as no Organization

can afford to see decline sale and negative perception. In this previously mentioned scenario, the topic of the research was

decided.

SCOPE OF STUDY

Research work and findings are important for the organization because of following:

It reflects the picture of Packing Milk in particular region.

It emphasizes on the benefits of the brand awareness and consumer preference.

It helps the organization to manage proper contacts with the big retailers.

The Study made and Data collected is useful for the future planning of the Company.

The study is further important to the organization in planning & deciding Companies strategies as per local market

expectation.





LIMITATIONS OF STUDY

Some of the respondents do not give out accurate information due to their inherent problems.

Survey was conducted in the selected areas of the Nasik region, which was giving, by the company so we cannot apply

the suggestions and findings to all over Nasik region.

The retailers and customers of the product is deeply penetrated everywhere so we cannot meet all of them.

The findings and Suggestions given are confirmed to the sample size.

FINDINGS

Findings from Retailers Analysis:

Most of the Retailers selling cow milk as compare to toned milk and buffalo milk. Its percentage is 89%.

In the selected area of Nasik region S.R. Thorat occupied 24% market share. Which is comparatively good than other

competitors.

Most of the Retailers choose particular Brand from its Quality (32%) and Availability (27%) rather than price, demand

and other factors.

It is also found that the Shelf life of milk is not exceeding than 2 days. It is clear from the respondent given percentage

to 1 day 41 %, for 2 day- 44% and very miner for 3 days 15%.

The Brand Awareness of S.R. Thorat Milk co. is Excellent in this region its 98% retailers responded.

There is 52% retailers approved the Quality of S.R throat milk is good and 40% approved very good Quality.

There is 62% retailer’s respond that the price of milk is very high and 24 % respond the price is very high as compare to

other competitors.

The Availability S.R. Thorat Milk is easy in this region. There is 58% customers tick on easy option, 38% on rare option

and only 4% customers tick on the hard availability option.55% Retailers think that the brand name of S.R. Thorat Milk

co. brand name is Strong, 43% think it is good.

Compensation Policy (Wastage, leakage, perish replace or compensation by money is have to improve. Its opinion about

56% retailers, 40 says this policy is normal or average and only 4% says it is good than others.

Findings from Customers Analysis

Most of consumers are given preference to packing milk it.

The brand loyalty of customer for S.R. Thorat milk is very good. Its proportion as compare to others is 84: 16.

Most of consumers consume milk nearly 1 liter per day.

The main reason behind the very good brand loyalty of S.R.T. milk is Strong Brand name and Stable Quality.

Shelf life of S.R. Thorat milk is good. There is 50% consumer remark on 1 day, 45 remarks on its 2 days and only 5

remarks on 3 days.

From the customers opinions it is clear that the Quality of S.R. Thorat milk is good. There is 55% customers respond on

good quality, 30 for very good option and remaining 15 says it’s an average, no one says its poor in quality.

Most customer remark that the price of product is high. Its % is 55 and 31 % says its price is average like others, 14%

customers remark on the very high price option and no one says it is available at low price.

It is also found that the 84% customers are satisfied, 5% are highly satisfied and only 11 % customers are dissatisfied.

SUGGESTIONS

From the study of perception of retailers, it is finding that they are mostly interested in commission. It shows that to

increase market share co. have to provide more commission as compare to the competitors. Co should have to give more

attention and do study in the direction towards.

Company should have to appoint sales executives in this region to enhance sales.

Company should have to make abundant supply of milk in every region.

Sometime milk has not sufficient availability it should have to avoid by making timely and promptly distribution.

The Quality of the product should have to be maintained properly. It is very important to keep Stability in Quality

because it directly affecting the demand.

In some cases, company has to provide Replacement as per the policy to avoid the Disfavors of Retailers.

The advertisement is very important from the marketing point of view. To change the attitude of retailers and customers

company have to give flex board, banner, sticker, wall painting and other advertising material to keep goodwill in

customers mind. It will definitely give advantage in this competition era.

Company also has to think on to introducing new schemes, coupon, gifts offer for the Retailers and consumers on

certain quantity sales. Especially in the slack season and festival days.





The co. should have to try for increase the shelf life of milk and maintain it surely. Overall current shelf life is good but,

it can be better definitely the sale will increase.

For deep penetration of the product and brand to increase the current market share Co. also have to find new develop

areas of city and making timely & excellent delivery by increasing suppliers network in that area.

It is also seen that the price of S.R. Thorat milk is quite high than others. Co. should have to give more attention on it

and try to decrease the price, which is suitable to market as well as company point of view.

If possible, company has to provide more credit to suppliers with increasing the pressure for enhance sale and pass

credit to Retailers.

Company has to fix ‘Target Sale’ quantity to get the credit facility from the co. It is seen that, most consumer purchase

milk packing of 500 ml although they need more they purchase two bag of 500 ml rather than 1 liter Bag Packing. So if

company provides more discount on 1 liter. Bag packing it may increase the quantity sale.

If company take earnestly above finding's and suggestion's & try it to applying as possible as then, it surely help to

enhance market share and create a positive perception among the customers as well as Retailers.

REFERENCES

1. Philip Kotler. Marketing Management (12th Ed.).

2. G. Schiffman, Leslie Lazar, & Kanuk, Leon. Consumer Behaviors (9th Ed.).

3. Brochure of S.R. Thorat Co.

4. Retrieved from http://www.slideshare.net/hemanthcrpatna/a-project-on-pre-launching-study-of-new-masala-product-in-

p...

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FUNCTIONAL EFFECTIVENESS OF THE MAHATMA GANDHI NATIONAL RURAL

EMPLOYMENT GUARANTEE SCHEME IN DINDIGUL DISTRICT OF TAMIL NADU

Dr. S. Rajamohan2 C. T. Dhanabalan3

ABSTRACT

The MNREGS is a scheme, which provides a 100 days wage employment to the rural mass with a view to eradicate the

poverty and unemployment. Moreover, this scheme is functioning with the aim of creating durable assets to the community

and thereby taking efforts to rejuvenating natural resource base of the area concerned. Stimulate the local economy by

providing a safety net to the rural poor. It ensures empowerment to the rural women and supports to Strengthen grass-roots

democratic institutions. Likewise, this scheme performs in a manner. With a view to assess the functional performance of the

MNREGS, the present paper attempted in Dindigul district of Tamil Nadu.

KEYWORDS

MNREGS, Functional Effectiveness, Poverty Eradication etc.

INTRODUCTION

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a rights-based wage employment programme

aiming at enhancing livelihood security by providing at least one hundred days of guaranteed wage employment in a financial

year to every rural household whose adult members volunteer to do unskilled manual work. The objectives of the Scheme are

providing not less than one hundred days of unskilled manual work as a guaranteed employment in a financial year to every

household in rural areas as per demand, resulting in creation of productive assets of prescribed quality and durability. The major

goals of MGNREGA are to enhance livelihood security of the rural poor by generating wage employment opportunities in works

that develop the infrastructure base of the area concerned. Rejuvenate the natural resource base of the area concerned. Create a

productive rural asset base. Stimulate the local economy by providing a safety net to rural poor .Ensure empowerment to women.

Strengthen grass-roots democratic institutions.

REVIEW OF LITERATURE

Amrit Patel (2006) pointed out the rural economic scenario, important features of the NREGA, lessons to be learnt from existing

wage employment and asset generation schemes, improving the effectiveness of the role of the PRI in planning, implementing,

monitoring and impact evaluation under the scheme. This study is also dealt that this scheme is unique in its concept and

implementation and therefore, role of PRIs, State and Union Government needs to be well-defined ambiguity and each institution

accountable in respect of achieving the objectives of the scheme.

Rabhbendra et. al., (2008) have conducted a pilot survey of three villages in Udaipur district, Rajasthan. They found that the

share of participating household that worked for 90 days or more in 2007 was a little over one-fifth and about 39 percent worked

for 50 to 90 days. Therefore, a large majority worked for a fairly long duration. It is difficult to disentangle the variation due to

implementation failures and differences in demand. Finally, they concluded that to ensure sound planning and to overcome

political apathy, an important result is that the higher the probability of participation the longer was the duration at participation.

Amita Sharma (2010) has found in his study that women found new identity and economic empowerment, taking the wages

directly through their accounts, increased spending of earning from the MNREGA on food, consumer goods, children’ education

and of fretting debts, work availability in village creased post MNREGA, decision making power for women also increased, fixed

working hours were being an incentive, easily available job cards, breaking caste and community issues, socio-economic benefits

and easy access to credits could be attributed to MNREGA.

Verma, S. (2012) in his study he found that the MGNREGA deeply influenced the rural farm and non-farm labour markets. In

2009-10 and 2010-11 students 50 masters’ from the Institute of Rural Management, Anand (IRMA) deployed to understand how

MNREGA and village labour markets interact. The students covered 26 villages in 11 districts of nine States in 2009 and 13

villages in 11 districts of nine states in 2010. In addition, eight IRMA students surveyed village leaders, laborers and farmers in 75

villages from Gujarat, Rajasthan, Bihar and Kerala. The study summarized the lessons from this field study.

2Professor, Alagappa Institute of Management, Alagappa University, Tamil Nadu, India, [email protected] 3Research Scholar, Alagappa Institute of Management, Alagappa University, Tamil Nadu, India, [email protected]







Varad Pande and Neelakshi Mann (2014) MNREGA has been a strong pillar on which the foundation of rural prosperity of the

last decade has been based. One in four rural households have benefited from it, with at least 50 percent beneficiaries being

women, scheduled castes and scheduled tribes. Of course, rural India needs more than just MNREGA. However, the contribution

of this programme to the “India story”, and to rural revival in the last decade cannot be dismissed cavalierly and without recourse

to evidence.

OBJECTIVES OF STUDY

To analyze the respondents’ awareness towards the work related administration.

To assess the respondents’ level of satisfaction towards the worksite facilities provided.

To evaluate the respondents’ opinion towards the utilization of wages earned under the scheme.


The present study is a blend of both primary and secondary data. The primary data were collected by using interview schedule

from the study area of Dindigul district, Tamil Nadu. For collecting the primary data there were 347 respondents have been

contacted by the researcher, moreover the total number of respondents has been determined by using Rao’s sample size

calculator. The secondary data were collected from magazines, MNRGES website and the previous research works related to the

MNREGS.

Tools Administered For Analysis

For analyzing, the respondents’ awareness on the work related administration of the MNREGS the Kolmogorov-Smirnov test has

been used. Likert scaling technique has been used to analyze the various works site facilities provided under the MNREGS and

the Friedman test has been administered to analyze the way in which the wages utilized by the respondents.

DATAANALYSIS AND INTERPRETATION

Awareness of the Respondents’ Towards the Work Related Administration - Kolmogorov-SmirnovTest

In the MNREGS there are work related administrative activities such as transparency of administration, information regarding

right to information act, availability of information relating to the number of days they worked, wages received, fund allocation

and fund utilization and so on. Moreover, as per scheme’s norms contractors and machineries should not be used. Besides, the job

allotment ratio for men and women should be as per schemes guidelines and job allotment for the old age people should base on

their caliber. Likewise, there are nine variables comes under work related administration.

With a view to test, the responses of the respondents’ on the awareness of the work related administration; the Kolmogorov-

Smirnov Test has been used. It is a non-parametric test. There are personnel factors such as gender, age, marital status,

educational qualification, type of family, number of family members, monthly income, sources of employment and social group of

respondents that have been included. Out of which the age is considered an important factor than the other factors. Because, in the

real life, elder people have more awareness than younger people and at the same time the level of awareness is differing from age

to age. Here, the null hypothesis is that the age of the respondents’ and their responses are not same.

Table-1

Variables N Mean Std.

Deviation Absolute +ve -ve KS z

sig. 0.05

2 tail

Transparency of Administration 347 1.81 0.81 0.269 0.269 -0.165 5.006 0.000

Right to Information Act 347 2.12 0.547 0.428 0.428 -0.353 7.971 0.000

Association of MNREGS with

RTIA 347 2.02 0.537 0.361 0.361 -0.35 6.734 0.000

Access of Information from RTIA 347 1.95 0.687 0.267 0.26 -0.267 4.981 0.000

Bann of Contractors 347 2.33 0.8 0.339 0.203 -0.339 6.319 0.000

Bann of Machineries 347 2.12 0.772 0.236 0.198 -0.236 4.405 0.000

Job Allotment for Men and

Women 347 1.69 0.762 0.312 0.312 -0.184 5.807 0.000

Job Allotment for old Age People 347 1.48 0.777 0.425 0.425 -0.266 7.92 0.000

Administrative officials 347 1.95 1.029 0.22 0.22 -0.178 4.099 0.000

Sources: Primary Data





Table-1 shows that respondents’ awareness on the work related activities. Nine activities have been identified under the work

related activities. Because of the KS Test, it is proved that the null hypothesis has been rejected for all the variables. Because, the

P value is less than 0.05 in all the nine variables, hence it is concluded that the age of the respondents’ influence the awareness at

two-tailed level.

Respondents’ Opinion towards the Worksite Facilities Provided

In the MNREGS, providing work site facilities are being mandatory. Hence, the work place administrative officials should made

efforts to provide the work site facilities to the workers. In some parts of the study area, the facilities have been provided in a

manner but in some places, it is not up to the mark. Regarding the MNREGS work site, facilities the workers are in different

opinion. In order to assess the beneficiaries’ satisfaction level towards the work site facilities provided in the work place the Likert

scaling technique has been used.

Likert scaling technique is one of the techniques used to find out which work site facility has the maximum value. The weightage

is given to each column ranging from five to one in order to find out the highest average value.

Weightage value = (HS*5 + S*4 + NO OP*3 + DS*2 + HDS*1)

Table-2

Sl. No. Particulars HS S NO OP DS HDS Likert Value Total Average

1

2

3

4

5

6

Drinking water

Rest place

Crèche

Lunch and break time

Working hours

First aid facilities

30

96

19

94

95

22

74

81

53

43

44

52

89

55

62

67

40

34

88

58

60

85

57

62

66

57

153

58

111

177

955

1142

766

1071

996

721

347

347

347

347

347

347

2.81

3.29

2.20

3.08

2.87

2.07


Considering all work site facilities, majority of the respondents have positive view on the rest place provided in the work site,

followed by lunch and break time having high value. Rest of the each factors have different outlook. The rest of the facilities are

having least value than the other facilities.

Utilization of Wages Received under the MNREGS - Friedman Test

The researcher has recorded the opinions of the respondents regarding the wages they received under the scheme. They use their

wages for different purposes. It have been identified that wages are utilized for different purposes such as for food, for savings,

children’s education, health and medicine and to purchase necessary goods and so on. The respondents are recorded their opinion

in a way, in which they utilize the wage. In order to assess the respondents’ priority on these variables, the researcher has

administered the Friedman test. This is a non-parametric test, it is used to find out the mean rank of each variables. Based on the

mean rank it is identified that the priority given by the respondents on the utilization of wage. Here, the null hypothesis is that

there is no significant difference among the ranks provided by the respondents.

Table-3

Particulars Mean Std. Deviation Mean Rank Chi-Square d.f. Significant Level

at 0.05(N=347)

For food

For Savings

Children’s education

For Health and medicine

To Repay the local debts

For Purchasing goods

3.46

3.24

3.12

4.37

4.16

3.31

1.741

1.581

1.819

1.346

1.695

1.874

4.26

3.11

3.00

3.36

3.20

4.06

140.322 5 0.000


Table-3 shows that the P value is less than 0.05; hence, the null hypothesis is rejected at five per cent significant level of

significance. Therefore, it is concluded that there is a significant difference between the mean ranks assigned by the respondents

towards the way in which the wages have been utilized. Based on the mean rank, it is found that respondents spent their major

portion of wage for food, followed by purchasing the goods, and then health related expenditure is being in the third position.

Likewise, each variable stood in a position based on the mean rank.





CONCLUSION

MNREGS has helped in livelihood diversification and supplementing employment in lean seasons in rural areas. It is also noticed

a positive impact on the children education as well as most of the earnings have been spent for food and savings. The age of the

respondents’ influences their awareness, but even now, the irregularities taking place in the scheme. In the work site facilities

concerned, in the majority, the places rest places and lunch and break time have been provided in a major level than the other

facilities. Therefore, efforts should be taken to provide all the facilities placed in the scheme.

REFERENCES

1. Patel, Amrit. (2006, May). Role of PRIs in implementing rural employment guarantee scheme. Kurukshetra, 24(7), 24-

29.

2. Rabhbendra Jha, Rahav Gaiha, & Shiyalashri Shankar. (2008). Reviewing the MNREGA. Economic and Political

Weekly, pp.44-48.

3. Sharma, Amita. Mahatma Gandhi National Rural Employment Guarantee Act 2005 A Right based law for inclusive

growth. Ministry of Rural Development, Government of India. Retrieved on 11 April 2010 from www.google.com.

4. Verma, S. (2012). Labour Markets Dynamics in Post-MGNREGS Rural India, pp.11-13 (Unpublished note shared

with the Ministry of Rural Development).

5. Pande, Varad, & Mann, Neelakshi. (2014, January 02). MNREGA in Tamil Nadu: A Story of Success and

Transformation: Journal of Agrarian Change.39.

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12. Retrieved from

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RURAL MARKETING STRATEGIES AND FUTURE OF INDIAN RURAL MARKET

Dr. A. Vinayagamoorthy4 D. Kamatchi5

ABSTRACT

In recent years, rural markets have acquired importance, as the overall growth of the economy has resulted into considerable

increase in the purchasing power of the rural people and preferences of rural people are being changed. Therefore, every

marketing player is keen to invest in rural markets. Rural Marketing is a developing concept, and as a part of any economy has

untapped potential; marketers have realized the opportunity recently. Improvement in infrastructure and reach promise a bright

for those intending to go rural. There is no doubt that divides do exist between urban Indian and rural India. This paper

discusses the rural marketing and its strategies and focuses on traditional methods, problems and challenges for selling

products, services, and futures on Indian Rural Market.

KEYWORDS

Rural Marketing, Marketing, Challenges in Rural Marketing, Rural Marketing Strategies etc.

INTRODUCTION

India is one of the largest emerging markets with a population of over one billion. The size of rural market itself speaks of its

potential. The current marketing environment and economic scenario have brought the corporate under contemporary roofs of

modern India. The Indian rural market with its vast size and heterogeneous demand base offers great lucrative opportunities to

marketers. After all, two thirds of countries consumers live in rural areas and almost half of the national income is generated in the

rural hinterland. This is challenging the current standards of segmenting, targeting and reaching the customers. Realistically, India

as a nation has come a long way from the place where only urban population, which constitutes 20 per cent of customer base for,

companies is responsible for 80 per cent and their profits. The companies are looking for new opportunities and avenues, as they

are witnessing a decline in their growth rates in urban markets due to market saturation and they do have a huge, untouched and

untapped rural Indian market.

Today rural market offers a vast untapped potential, development programs on the field of agriculture and related activities such

as health, education, Commutation, etc. have improved the lifestyle of village population. In addition, rural markets have acquired

significance, as the overall growth of economy has resulted into substantial increase in the purchasing power of the rural

communities a survey by India’s premier economic research entity. National Council for Applied Economic Research (NCAER)

indicates that rise in rural incomes is keeping pace with the rise in the urban incomes. Punjab, Kerala, Haryana, Rajasthan,

Gujarat, Andhra Pradesh, and Maharashtra are considered highly prosperous states.

Rural

The rural area means as per the census 2011 any place, which meets the following criteria:

A population of less than 5000,

Density of population less than 400 per SQ km,

More than 25 per cent of the male working population is engaged in agricultural pursuits.

Rural Marketing

According to the national commission on agriculture, rural marketing is a process, which starts with a decision to produce a

saleable farm commodity, and it involves all the aspects of market structure or system, both functional and institutional, based on

technical and economic considerations and includes pre and post-harvest operations, assembling, grading, storage, transportation,

and distribution.

Rural marketing has two major areas:

Marketing of agricultural products, from rural to urban areas, from rural to urban areas,

Marketing of manufactured goods and services in rural areas.

4Professor, Department of Commerce, Periyar University, Tamil Nadu, India, [email protected] 5Research Scholar, Department of Commerce, Periyar University, Tamil Nadu, India,[email protected]







Thus, rural marketing is a two way marketing process. This includes the flow of goods from rural to urban areas and the flow of

goods and services from urban to rural areas.

Rural to Urban: The rural to urban transactions include the agricultural products like food grains, oil seeds, cotton,

sugar cane, tobacco, etc. consumed by urbanites after due processing.

Urban to Rural: The urban to rural transaction cover the goods and services of all agricultural inputs like fertilizers,

pesticides, seeds, tractors, consumer durables like radio, bicycles, mopeds, clocks, batteries, electrical goods, etc. and

consumables like soaps, detergents, cosmetics, tea, cigarettes, and food items, etc.

Rural to Rural: The flow of goods and services within the rural areas such as small agricultural tools, household

earthen items, wooden items such as doors, windows, etc. and the services of blacksmiths, carpenters, masons, cobblers,

also have within rural areas itself.

Over the past few years schemes like ITC's echaupal, HLL's project Shakti, shampoo sachets launched by Chick, BSNL's rural

schemes have made a mark in rural India. Many retail hubs like Kisan Sansar (Tata), Haryali Kisan Bazar (DMC), Reliance Fresh,

Naya Yug Baazar etc., have been able to make a dent in the village economy.

REASONS FOR GROWTH OF RURAL MARKETING

There are a large number of reasons for growing interest in rural markets. The greater importance is given to the rural market as a

different segment with a vast market with large number of smaller markets or sub market due to growing economic power and

purchasing power, improved communication and accessibility, high growth and untapped potential. In addition, increasing

competition in urban markets makes rural an attractive new market for marketing products to cater to these rural needs and wants.

The major reasons for growing rural markets are:

Growing Population: India’s population is growing at an average of 1.94 per cent every year, rural population is

growing at a rate of 22 per cent therefore; demand particularly consumer, and essential goods, which are essentially

related to population, will grow every year.

Market Size and Penetration: The estimate size of India’s rural market, based on India’s total population of one

billion. Out of which 68.84 per cent are living in rural areas. The rural market is scattered in 6,38,000 villages all over

India.

Current Consumption as an Indicator of Future Potential: The purchase and use of some durable and nondurable

products by rural consumers is more than urban consumers (according to NSSO data).

Untapped Market Potential: Rural market is still untapped market, now it is attracted to MNC’s because of high

competition in urban market.

Increasing Income and Purchasing Power: Now agriculture is also one of high income generated sources in rural due

to modernization in agriculture sector. More than 70 per cent rural people working in agriculture. Agricultural families’

income has increased considerably and purchasing power.

Accessibility of Markets: The attractiveness and sustainability of a market depends upon its accessibility. The

marketing programmer can be implemented if the market has necessary communication, transport, storage and other

necessary infrastructure facilities. The road network has considerably increased in last thirty years.

Changes on Rural Consumer Behavior: Increased mobility between urban and rural areas because of improved

transport and communication facilities, and due to greater emphasis in literacy, all these factors have contributed greater

awareness of products and services available to the rural consumers. Product awareness complete with higher disposable

income, have created demand for many products, which were earlier thought to be urban products.

Competition in Urban Market: The competition of market share, sale, and profit and shelf space in the urban market

is driving many companies to look beyond the urban market, which has been their activity area for the last few decades.

The costs have increased and the creating pressured reduces profits.

In such a situation, rural market is becoming more remunerative and profitable.





The Major Hurdles in Tapping the Rural Markets can be summarized as:

High distribution costs,

High initial market development expenditure,

Inability of the small retailer to carry stock without adequate credit facility,

Generating effective demand for manufactured foods,

Wholesale and dealer network problems,

Mass communication and promotion problems,

Banking and credit problems,

Management and sales managing problems,

Market research problems,

Inadequate infrastructure facilities (lack of physical distribution, roads warehouses and Media availability),

Highly dispersed and thinly populated markets,

Low per capita and poor standards of living, social, economic and cultural backwardness of the rural masses,

Low level of exposure to different product categories and product brands,

Cultural gap between urban-based marketers and rural consumers.

The development of the rural market will involve additional cost in terms of both promotion and distribution. In rural marketing,

often it is not promotion of a brand that is crucial, but creating an awareness concerning a particular product field, for instance,

fertilizers and pesticides. Urban and semi-urban based salesmen are not able to tap the full potential in the villages. Here, it may

be suggested that the marketers may select and employ the educated un-employed from villages.

STRATEGIES OF RURAL MARKET

Best Promotion and Quality Perception

Companies with new technology are properly capable to communicating its products and services to their customer. There is a

trade-off between Quality a customer perceives and a company wants to communicate. Thus, this positioning of technology is

very crucial. The perception of the Indian about the desired product is changing. Now they know the difference between the

products and the utilities derived out of it.

Easy-Way Communication especially for Rural Market

The companies have realized the importance of proper communication in local language for promoting their products especially in

rural market. They have started selling the concept of quality with proper communication and easily understandable way of

communications. Their focus is to change the Indian customer outlook about quality.

Focus on Customer Requirement

Every customers want value for their money. They do not see any value additional associated with the products. They aim for the

basic functionality. However, if the sellers provide frills free of cost they are happy with that. They are happy with such a high

technology that can fulfill their need. For example, Nokia and Reliance has launched a simple product, which has captured the

market.

Patriotism with Products and Services

Companies are associating themselves with India by talking about India, by overtly saying that they are Indian and they are more

patriotic. Using Indian Tricolor while doing advertisement during Independence Day and Republic Day like Nokia has designed a

new cellular phone 5110, with the India tricolor and a ringing tone of "Sare Jahan se achcha".

Promoting Indian Sports Team

Companies are promoting Indian sports teams so that they can associate themselves with India. With this, they can influence

Indian mindset like during Cricket World Cup. For example Hero Honda has launched a campaign "Dhak Dhak Go" Similarly,

Other companies has also launched a campaign during world cup.

Developing Specific Products for Specific Segment

Many companies are developing rural-specific products. Keeping into consideration the requirements, a firm develops these

products. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water, keep cooked





food fresh, and to withstand long power cuts. In Service Sector like Insurance, they are focusing on Micro insurance products for

rural segments.

Changing Pattern of Rural Customers

Now-day’s villagers are constantly looking forward for new branded products and good services. Indian customer in rural market

was never price sensitive, but they want value for money. They are ready to pay premium for the product if the product is offering

some extra utility for the premium. Furthermore, rural people are emotional and sensitive. Thus, to promote products and services

we should regard their social and cultural values.

Effective Media Modes of communication

Traditional media or the modern media used for rural marketing is being used by companies. The traditional media include melas,

puppetry, folk theatre etc., while the modern media includes TV, Radio, E-chaupal. LIC uses puppets to educate rural masses

about its insurance policies. Government of India uses puppetry in its campaigns to press ahead social issues. ITC's E-chaupal

(chaupal is the common place where villagers gather) has been the most elaborate and extensive venture in this field so far.

Conceived by ITC's international business division and launched in 2000, the E-chaupal project has since grown to around 2,700

chaupals covering a population of around 1.2 million in five states - Madhya Pradesh, Karnataka, Andhra Pradesh, Uttar Pradesh

and Maharashtra.

Adopting Best localized way of Distributing Channels

Companies recognize proper distribution channels. The distribution channel could be big scale Super markets; they thought that a

similar system could be grown in India. However, they were wrong; soon they realized that to succeed in India they have to reach

the nook and the corner of the country. They have to reach the "local Paanwala, Local Baniya or Kirana Shop Owners" only they

can succeed. Big Multinational companies in India capture the rural market share in India if they have to go the local market shoe

sellers and with the low priced products.

CHALLENGES IN INDIAN RURAL MARKET

Rural markets, as part of any economy, have untouched potential. There are several difficulties confronting the effort to fully

explore rural markets. Distribution costs and non-availability of retail outlets are major problems faced by the marketers. The

success of a brand in the Indian rural market is as unpredictable as rain. Many brands, which should have been successful, have

failed miserably. The unique consumption patterns, tastes, and needs of the rural consumers should be analyzed at the product

planning stage so that they match the needs of the rural people. Therefore, marketers need to understand the social dynamics and

attitude variations within each village though nationally it follows a consistent pattern. The main problems in rural marketing are:

Understanding the Rural Consumer,

Poor Infrastructure,

Physical Distribution,

Channel Management,

Promotion and Marketing Communication.

METHODS FOLLOWED TRADITIONALLY

Traditional methods of rural marketing make an interesting study and they ought to be analyzed carefully to draw relevant

conclusions. Conventionally, marketers have used the following tools to make rural inroads:

Use of few select rural distributors and retailers to stock their goods but no direct interaction with prospective consumer.

Use of print media or radio but no alternate form of advertising for promoting their brands.

More focus on price of product but less attention devoted to quality or durability.

Same product features for urban and rural setting with no customization for rural areas despite differences in the market

environment.

Low frequency of marketing campaigns.

Little uses of village congregations like haats and melas to sell the products.

More focus on men as decision makers and buyers.

FUTURE OF INDIAN RURAL MARKET

There are many opportunities waiting to be exploited in the area of rural marketing.





There is an increasing convergence between urban and rural consumers especially the young consumers, who have almost same

aspirations as that of a young urban consumer. Thus, the marketers can target a certain section of rural consumers in the same

manner as they are targeting the urban ones.

The purchasing power of rural families has grown rapidly. Rural Marketing Association of India (RMAI) confirms that rural

income levels are on a rise. Income from non-farm sector is likely to touch 66% of net rural income by 2020. Market size would

thus, nearly double. Average rural spending would grow 6 times from current levels in 20 years. Moreover, the percentage of

Below Poverty Line (BPL) families declined from 46% to 27%.

The various infrastructural problems have been tackled largely. Work is in progress for the better connectivity by roads; more than

90% of villages are electrified. Rural telephone density has gone up by 300% in last 10 years. Rural literacy rate has also

improved from 36% to 59%.As its fact, India's rural population accounts for 12.5% of the world's total population, 600,000

villages with 700 million people; the countryside thus, offers a huge consumer base and huge opportunity for rural marketers in

India.

Lastly, the per capita income of top 20%-30% of rural segment is not much different from urban middle class. This means that the

affordability of the segment of rural consumers will be almost equal to that of the urban middleclass. Thus, marketers can tap this

segment as well with the product he is targeting the urban middle class.

CONCLUSION

The rural market is where the markets of the future are likely to be. Urban markets are becoming increasingly competitive for

many products. In some cases, they are even saturated. On the other hand, rural markets offer growth opportunities. Rural market

is the market of the new millennium. Marketers will have to understand the rural customers before they can make inroads into the

rural markets. Thus, looking at the challenges and the opportunities, which rural markets offer to the marketers, it can be said that

the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.

A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully

impression the 230 million rural consumers spread over approximately six hundred thousand villages in rural India.

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19. Retrieved from http://www.borjournals.com/Research_papers/Jan_2013/1125%20M.pdf

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strategies...

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23. Retrieved from http://www.ijemr.net/April2014Issue/RuralMarketingStrategiesIssuesAndChallenges(116-122).pdf

24. Retrieved from http://www.indianresearchjournals.com/pdf/APJMMR/2013/July/4.pdf

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26. Retrieved from http://www.studymode.com/essays/Prospects-And-Problems-Of-Indian-Rural-38816302.html

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http://mgmtfunda.com/itc-e-choupal-rural-marketing-marketing-strategy

http://pezzottaitejournals.net/index.php/IJRRBP/article/view/245

http://ruraldevlopment-ritwik.blogspot.in/

http://seminarprojects.com/Thread-rural-marketing

http://toostep.com/idea/what-strategies-companies-should-adopt-for-rural-marketing

http://www.borjournals.com/a/index.php/jbmssr/article/download/305/942

http://www.borjournals.com/Research_papers/Jan_2013/1125%20M.pdf

http://www.coolavenues.com/marketing-zone/rural-india-challenges-and-opportunities

http://www.coolavenues.com/marketing-zone/rural-marketing%3A-challenges-opportunities-%26-strategies

http://www.coolavenues.com/marketing-zone/rural-marketing%3A-challenges-opportunities-%26-strategies

http://www.fibre2fashion.com/industry-article/market-research-industry-reports/rural-market-strategi

http://www.ijemr.net/April2014Issue/RuralMarketingStrategiesIssuesAndChallenges(116-122).pdf

http://www.indianresearchjournals.com/pdf/APJMMR/2013/July/4.pdf

http://www.slideshare.net/vikramknvicky/the-future-of-rural-marketing

http://www.studymode.com/essays/Prospects-And-Problems-Of-Indian-Rural-38816302.html

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THE IMPACT OF TWITTER ADVERTISEMENT

ON UNIVERSITY STUDENTS PURCHASE INTENTIONS

Dr. Saleh Saad Alqahtani6 Huda Al-Homoud7 Mona Al-Otaibi8

ABSTRACT

Social media have grown into a powerful marketing communications tool in the global economy. Businesses are spending

more on advertisement using social media than before. Understanding the factors that influence online advertisement

effectiveness is crucial. While much research has addressed the issue of online advertisements, in general few studies have

considered the case of Twitter in particular. This study seeks to explore the factors that contribute to the influence of Twitter

advertisements and affect consumer-purchasing intention from the perspective of university students in Saudi Arabia. This

study empirically analyzes the effect of online advertisement on purchasing intention using data collected from 451 university

students in Saudi Arabia. Results show that incentives, product category, interactivity, and attitudes toward Twitter

advertisements are significant factors that affect the influence of Twitter advertisement on purchase intention. However, one

notable finding emerged; there was no difference between gender and type of university as an influence factor on the purchase

intentions.

KEYWORDS

Advertisement, Social Media, Twitter, Purchase Intentions, University Students etc.

INTRODUCTION

Social media have grown into a powerful marketing communications tool in the global economy. These days most of the business

houses are spending substantial amount on advertisement using social media than before. In the age of globalization,

advertisement finds its position in every organization as an approach toward competitive advantage.

Advertisement is defined in Webster’s dictionary as “the act of informing or notifying, a public notice especially a paid notice.”

Social network advertising is a form of online advertising that uses social networking sites. Several social networks are flourishing

on the Internet today. Facebook, Twitter, LinkedIn, YouTube, and MySpace are some. Twitter is one of the largest social network

sites in the world and it has gained a big attention as a communication tools recently. Twitter consider as an information network

that brings people closer to what is important to them, millions of people turn to twitter to connect to their interests, to share

information, and find out what is happening in the world right now (Mavel, 2012).

Social network advertising is a term that is used to describe a form of online advertising that focuses on social networking sites.

Social networking sites is web based services that allow individuals to construct a public profile within a bounded system,

articulate a list of other users with whom they share a connection, and view and traverse their list of connections and those made

by others within the system (Boyd and Ellison, 2007).

Internet advertising attracts attention because of the current shift in advertising strategy in favor of deriving maximum response

from selected target groups instead of maximum exposure to many unknown audience groups (Yoon and Kim, 2001). The

accountability of online advertising along with its contribution to marketing efficiency and effectiveness are expected to lead to

further growth in Web-based advertising efforts (Hollis, 2005). Community-based websites, more commonly known as social

networking websites, have come to the forefront of the online world in recent times. Social networks have gained a great deal of

attention over the last seven years, but advertisers have not fully embraced the medium to reach out to consumers (Mrinal, 2008).

According to Dick Costolo - CEO of Twitter- there is 140 million Twitter’s users in 2012, 60 percent of them get to the service

via a mobile device (Kafka, 2012). Based on official Twitter website the power of Twitter as a marketing tool has been realized by

many business owners, millions of users and more people are joining it every day, which makes it one of the best places to look

for potential customers. Besides providing an arena for people to interact with one another, they also display great deal of

potential for businesses to easily reach their target audiences through advertising. Twitter is much more than people updating what

they had for lunch. It is a real time discussion on the latest trends, a place to gain market insights and a place where word of mouth

rules (Miller and Shaw, 2009).

6Associate Professor, College of Business Administration, King Saud University, KSA, [email protected] 7College of Business Administration, King Saud University, KSA, [email protected] 8College of Business Administration, King Saud University, KSA, [email protected]








One of the main benefits of advertising on a social networking site is that advertisers can take good advantage of the user’s

demographic data and segment their audience appropriately. The growth of Internet as a communication tool has fueled the

growth of customized real time message delivery, real time customer feedback and engagement. All this has led to the renewed

thrust on a new media platform i.e. the social media (Bhagat, 2012).

A new Twitter statistics shows that total number of active registered Twitter users in 2013 is around 554.75 million and aaverage

number of tweets per day is 58 million. In less than two decades, social networking has become a global phenomenon that is

attractive to businesses. Twitter is becoming one of the most popular social networking sites. The use of Twitter in Saudi Arabia

has boomed in the last 2 years.

Dick Costolo, CEO of Twitter, said in an interview with the Los Angeles Times “The number of Twitter users in Saudi Arabia

increased by 3,000 percent in June 2012, making the Gulf states the biggest growing market for social networks. Half of the

Kingdom’s active users log in daily while more than 50 percent access the micro blogging site via their Smart- phones. As another

sign of this growth, Riyadh is now the 10th most active city, and the number of registered users in Saudi Arabia grew by 93 per

cent in six months, reaching 2.9 million.

According to Jiffry (2013), Saudi Arabia currently ranks second among the world’s fastest growing countries on Twitter, with a

42-percent increase in the number of account holders and the largest age group of Twitter users in the Kingdom is the 25-34 years.

The second largest group is the 18-24 years.

This research paper targets Saudi university students to investigate the influence of Twitter’s advertisement on the purchase

intention. There are many researches that focused on online advertisement; however, the social media and the uses in a specific

region and toward specific demographics will give our study new insight into how twitters advertisement influence purchase

intention. In this study, an attempt has been made to investigate the factors that contribute to the influence of Twitter

advertisements and affect consumer-purchasing intention from the perspective of university students of Saudi Arabia. This study

empirically analyzes the effect of online advertisement on purchasing intention using data collected from 451 university students

in Saudi Arabia.

OBJECTIVES OF STUDY

The main aim of this study is to determine the influence of Twitter advertisement on purchase intentions of Saudi university

students. The objectives of this study are:

To understand the role of advertisement on Twitter as part of the marketing plan/strategy;

To determine the level of influence that Twitter advertisements can create on the purchase intentions of Saudi university

students; and

To recognize the perceptions of Saudi University students in terms of advertisements on Twitter.


As the web matured and major media companies developed more online content and focused their marketing strategies on the

online audience, people spent more time online but visited fewer websites (Mahdjoubi and Harmon, 2001). As a result, instead of

being new or different, many of the most popular websites to this day are the online extensions of companies with roots that

predate the web. For example, in early 2011, the top 50 U.S. websites (as measured by the Amazon-owned company, Alexa)

included a number owned by traditional media and technology companies, such as Time Warner (CNN.com), News Corp

(Foxnews.com, MySpace.com), Microsoft (MSN.com, Live.com, Bing.com, Microsoft.com), Disney (ESPN.com, Go.com),

Apple, The New York Times (nytimes.com, about.com), NBC Universal (weather.com), and Comcast. Over time, new media

firms entered the Internet market and became major players themselves appearing among the top 50 U.S. websites in 2011. These

included Google (Google.com, YouTube.com, and Blogger.com), Yahoo (Yahoo.com, Flicker.com), Facebook, and Twitter.

Today, the Internet’s most popular sites are dominated by this combination of older companies that moved onto the web plus new

Internet-based corporate giants (Sullivan, 2012).

A study by Gallagher et al. (2001) found that online ads were just as effective as print ads and social media present a new

interactive platform on the Internet. These digital communities create new situations to exchange commercial messages that vastly

differ from traditional text or banner advertisements. The evolution of social networks allows for personalized interactions

between advertisers and consumers.

Goldsborough (2009) conclude in his study predicted decline of e-mail usage, which attributes to younger people’s preference for

text messaging and communicating through social networks. Witmond and Padilla (2011) found in their study that brand should

move away from e-mail when targeting young customers. The marketers that will win with the younger generation, they have

replaced e-mail with technology that is integrated into their lives for communication. A report from com score also showed that

teenagers are abandoning e-mail for other technologies. E-mail use in 2010 among consumers ages 12 to 17 dropped 59 per cent,





according to com score. Email use was also down 18 per cent among consumers ages 18 to 25, and it decreased 8 per cent among

consumers ages 35 to 44. Businesses are already creating profiles and branding their products on social media sites in an effort to

reach consumers (Kuhn and Burns, 2008). In his Pew Internet sample Hampton (2011), found that 79 per cent of American adults

said they used the Internet and nearly half of adults (47 per cent), or 59 per cent of Internet users, say they use at least one of

social network service (SNS). This is close to double the 26 per cent of adults (34 per cent of Internet users) who used a SNS in

2008 Internet users of all ages are more likely to use a SNS today than they were in 2008. However, the increase in SNS use has

been most pronounced among those who are over the age of 35. In 2008, only 18per cent of Internet users 36 and older used a

SNS, by 2010 48 per cent of Internet users over the age of 35 were using a SNS. This is about twice the growth experienced by

Internet users 18-35; 63 per cent of whom used a SNS in 2008 compared with 80 per cent in 2010. Among other things, this

means the average age of adult-SNS users has shifted from 33 in 2008 to 38 in 2010. Over half of all adult SNS users are now

over the age of 35, which demonstrates the applicability of social networks to everyday life; this growing trend has vast

implications for advertisers and executives.

According to ( Long, 2013) Global social network advertising revenues are projected to double 2012 figures by 2014 – climbing

from seven to 14 billion. This makes sense as 70 per cent of advertisers are currently devoting at least a small portion of their

budget to social networks now. Message brevity, in contrast with lengthy e-mail marketing messages, has been hailed as an asset

of micro-blogs; it enables consumers to browse a large amount of updates efficiently. Aided by increases in smart- phone sales

and the continued rollout of Internet and mobile network infrastructure, Twitter is poised for even more growth (Wauters, 2010).

Ads on smart- phones and tablets will make up more than half of Twitter’s ad revenue this year, according to E- Marketer Inc.

That puts it ahead of Facebook, which generated 41 percent of its ad revenue from mobile promotions in the latest quarter.

Google, the largest search engine, is estimated to get slightly less than one quarter of its revenue this year from mobile ads, E-

Marketer said (Womack, 2013).

Based on the review of the research studies mentioned above, it is clear that Twitter advertising is gaining more attention and

should be an essential part of a marketer’s advertising media mix. This research attempts, study the influence of using Twitter as

an advertising tool on purchase intentions especially among university students. Although Twitter is new and a trend that deserve

to be researched very few studies have investigated the effect of Twitter advertisement on purchasing intension in a developing

country context. Moreover, we believe more studies need to explore youngster’s community as they represent the majority of

Internet users worldwide.

To measure the influence on purchasing intention many factors can be studied but due to time limit in our study, we will cover

few only as detailed below.

CONCEPTUAL MODEL AND HYPOTHESES

Incentive

Perceived incentive and trust were also found to be positively related to attitude towards affiliate marketing programs. The

consumers are likely to use affiliate links if they feel they will get some benefits in the form of incentives and if the levels of trust

towards affiliate links are higher (UlHaq, 2012). Individuals are interested in deriving some monetary benefit from direct

marketing programs. Prior research proposes that price discounts are particularly effective in inducing effects, such as purchase

acceleration and product trial (Shi et al., 2005). Thus, some previous studies shown that price promotions change consumers'

purchase decisions and that retailers use price promotions more frequently to boost store sales (Chen et al. ,1998). Advertisement

on social media is new and it lack in research to cover all aspects. Consequently, this study tries to test the following hypotheses:

H01: There is no statistically significant relationship between incentives offered in Twitter advertisements and the purchasing

intention of Saudi university students.

Product Category

Some consumers may prefer to buy certain types of products in a certain type of places. The relative salience of such favorable

and unfavorable features when comparing online and offline shopping options undoubtedly varies across type of product. “High-

touch” products are those that the consumer requires the ability to touch or experience before buying (Lynch et al., 2001). In

contrast, “low touch” products are those that are standardized and do not require inspection to evaluate quality. Other products

may fall at different points on the continuum. A similar distinction has been made by Hican and Dholakia (2003), they define

“search goods” as those for which full information on dominant attributes can be known prior to purchase (e.g., books) and

“experience goods” as those for which direct experience is necessary (e.g., perfume).

Girard et al. (2003) find that online shopping intention is higher for search goods than for experience goods. Some product

categories are regarded as more suitable for online shopping than other categories. The lack of physical contact and assistance in

shopping on the Internet is one factor that influences this suitability. Another factor is the need to feel, touch, smell, or try the

product, which is not possible when shopping online. Therefore, standardized products such as books and CDs have a higher

http://www.mediabistro.com/alltwitter/author/marylong

http://topics.bloomberg.com/facebook/





possibility to be considered when shopping on the Internet (Grewalet al., 2002). On the other hand, personal-care products like

perfume and lotion or products that require personal knowledge, or experience like computers and cars are less likely to be

considered while shopping online. In a recent research done by Gao et al (2012) results show that unconscious thought moderates

the relationship between information quality and consumer satisfaction towards their decision making when shopping experience

products online.

The following hypotheses are hypothesized to describe the relationship among variables.

H02: There is no statistically significant relationship between product category promoted on Twitter advertisements and the

purchasing intention of Saudi university students.

Interactivity

In general, communication is often potentially interactive, rather than being one way. For example, readers of newspaper websites

can provide instant feedback on a story, shoppers can post their own product reviews at online retail sites such as Amazon.com,

and viewers can comment or vote to “like” or “dislike” a video on YouTube. Interactivity can also mean that users are able to

employ these media to communicate with each other (Sullivan, 2012). As a unique construct in the fast-growing new

communication media of the World Wide Web, interactivity has been studied rigorously in fields such as advertising, marketing,

education, communication, information technology, and computer science.

Ha and James (1998), deconstructed and assessed the interactivity of business web sites and concluded, “The outcomes of

interactivity are engagement in communication and relationship building between a company and its target consumers.” In a study

to explore the concept of interactivity in Web advertising, Cho and Leckenby (1997) noted that interactivity is a crucial criterion

for advertising effectiveness communication and concluded that higher level of interactivity yield better and more favorable

attitude toward the target ad, a favorable attitude toward the brand, and a high purchase intention.

David et al. (2002) mentioned in their article that it is important to recognize the structural characteristic of interactive media and

the effectiveness of media communication from consumers’ perspective. The interactive capacities of “new” media blur the

distinction between producers and receivers. The idea is to encourage social media interactions and promote the brand online

thereby creating more brand loyal advocates who ultimately become the brand wagons and ambassadors of the respective product

brands or categories in their social circle getting incorporated in their social life and get rooted so deeply that is just next to

impossible to part with. Thus, the ultimate objective is achieved with greater results and having a long lasting association

consumers start feeling the brand as part of their social community (Bhagat, 2012).

The interconnectedness of Twitter users provides a distinctive channel for marketing communication. The structural and

interactive features of Twitter, as opposed to those of a traditional corporate website, foster ongoing conversations between

marketers and consumers for all three stages of the marketing process: pre-purchase (i.e., marketing research), purchase (i.e., sales

promotions), and post-purchase (i.e., customer services) (Kaplan and Haenlein, 2010). The interactive features of Twitter enable

brands to listen to consumers, initiate a dialogue, reply to consumers, and communicate with a sense of humor-all of which

represent "behaviors" enacted by the brand. (Kwon, 2011).thus the third hypotheses postulates.

H03: There is no statistically significant relationship between interactivity on Twitter advertisements and purchasing intention

of Saudi university students.

Gender

There is a significant body of evidence outside the domain of information systems supporting the view that "gender (does) indeed

play a crucial role in influencing behavior in a wide array of domains" (Venkateshet al., 2000). For traditional media advertising,

researchers have concluded that males exhibit more positive beliefs and attitudes than females (Hirschman and Thompson, 1997;

Prakash, 1992). Do the differences and similarities between the genders transfer to the new dynamic Internet environment?

Clearly, such differences, if they do exist with respect to Web advertising, would be of critical importance to advertisers.

Although practitioners, regulators, and scholars have been interested in this question, a limited number of studies have explored it.

The study by Palanisamy (2004), entitled “Impact of gender differences on online consumer characteristics on Web-Based banner

advertising effectiveness“ , found that in the context of web-based banner ad, gender was an influential factor towards banner

advertisement. Although these studies provided many useful insights we still need more efforts to fill the gap in the literature and

extend previous work by determining whether there are differences between the genders in influencing the purchase intention

specifically among Saudi universities students, in other words :

H04: There is no statistically significant difference between male and female university students in their purchase intention.





Attitude towards Twitter Advertisements in General

Attitude is defined as “An attitude is a lasting, general evaluation toward anything that one can have attitude toward like objects,

ideas, people or issues “(Solomon, 2009).

Attitude toward an ad is defined as “a learned predisposition to respond in a consistently favorable or unfavorable manner toward

advertising in general“(Mackenzie and Lutz, 1989). In this context, it is important to mention that attitude toward Twitter

advertising related to consumers’ attitude toward Twitter in general and not to the exposure to one particular advertisement. In

general, attitudes are ‘mental states used by individuals to structure the way they perceive their environment and guide the way

they respond to it’ (Aaker et al., 1995). Thus, it is no wonder that consumers trust is important especially in online environment as

it can positively impact consumers purchasing intentions (Bart et al., 2005).

A significant correlation between favorable attitudes toward advertising and respondents’ rating of specific ads as being annoying,

likable, and enjoyable and so on has been observed (Bauer and Greyser, 1968). The majority of these studies have focused on the

study of attitude toward the advertisement as a causal mediating variable in the process through which advertising influences

brand attitudes and purchase intentions. Furthermore, these studies have often shown a strong positive relationship between

attitude toward the advertisement and brand attitude, which in turn is positively related to purchase intention. Consequently, this

research focuses on the antecedents of consumer attitudes toward Twitter advertising.

DATA AND RESEARCH METHODOLOGY

In this empirical study, we used the causal method, which studies the effect of one variable over another. The applied method is

the combination of the qualitative and quantitative research study. In this study, primary and secondary research, both were

incorporated. The reason for this is to be able to provide adequate discussions about the issue. The primary data for the study was

collected by surveys. Online survey was used in this research, it is less costly and takes less time to prepare and then code once

they are returned. Electronic surveys are generally more cost effective and turn-around time (e.g., number of days to complete

survey) tends to be less in electronic surveys compared to mail (Cobanoglu et al., 2001). On other side, it is more difficult to

incentivize with electronic surveys. The response rates tend to be higher in traditional survey methods versus e-mail and web-

based surveys; average response rate for electronic surveys was 39.6 per cent (Cook et al., 2000).Baruch (1999) found the average

response rate for paper surveys to be 55.6 per cent.

A structured questionnaire was designed for this study, using nominal scale for demographics data(gender, type of university) and

rating scale for independents variable that effect purchase intention(incentive, type of product, interactivity and Attitude toward

Twitter in General). Our population is around millions of students who enrolled in Saudi university according to Ministry of

Higher Education, a convenience sampling of 400 is sufficient. On the other hand, the literature reviews represent the secondary

data of the study. The secondary source of data was driven from published articles in business journals, academic contexts, and

related studies on advertising.

In this study, SPSS software has been used for analyses. Reliability test and Validity test have been done respectively by using

Cronbach’s alpha coefficients and Cronbach’s alpha square root coefficients. Hypotheses testing were done by chi-square.

The Reliability

A reliability analysis was conducted for all factors. The reliability was examined through the calculation of Cronbach’s alpha

coefficients. Cronbach's alpha is the most common measure of scale reliability. A Cronbach’s alpha estimate should be interpreted

just like other internal consistency estimates, that is, it estimates the proportion of variance in the test scores that can be attributed

to true score variance.

Table-1: Cronbach's Alpha for the Reliability of the Factors of Survey

Factor Number of Items Alpha

All factors 41 0.96


Table (1) presents Alpha coefficient, which is greater than 0.9, which is, indicate a good Reliability.

The Self-Validity

A validity analysis conducted for all factors in table (2). The validity examined through the calculation of Cronbach’s alpha square

root coefficients present high score of validity.





Table-2: Self-Validity for the Factors of Survey

Factor Alpha Self-validity

All factors 0.96 0.98


Sampling Frame and Sample Distribution

The sampling frame included university students in Saudi Arabia, a convenience sample covered students in both public and

private sector.

Sample Distributions

Table (3) presents the gender for survey respondents. 451 replies were analyzed. The respondents were mostly female (71.6per

cent). All respondents were university students, and (78.7per cent) were from public universities as present in Table (4).

Table-3: Distribution of Study Sample According to Gender

Gender Frequency Percent

Female 323 71.6

Male 128 28.4

Total 451 100.0


Table-4: Distribution of study sample according to type of University

Kind of University Frequency Percent

Public University 355 78.7

Private University 96 21.3

Total 451 100.0


RESULTS AND FINDINGS

Demographics Results

A t-test was conducted for respondents’ gender for all factors as present in Table (5). There is no significant differences founded

between female and male students .So, we can conclude that there is no relationship between male and female university students

in their purchase intention, thus H04 rejected. Table (6) presents a t-test that conducted for respondents’ university type for all

factors. There are no significant differences founded between public and private university students. Therefore, it can be conclude

that there is no relationship between universities of students in their purchase intention.

Table-5: T-Test for the Difference in the Responses of the Study Sample According to Gender

Factor Gender N Mean T-value Sig.

Total Female 323 3.36

1.49 0.138

(N. S.) Male 128 3.25


Table-6: T-Test for the Difference in the Responses of the Study Sample According to Kind of the University

Factor Kind of University N Mean T-value Sig.

Total Public University 355 3.35

1.46 0.146

(N. S.) Private University 96 3.25


Note: The study used Likert scale and the following weights were used:

(Strongly Agree=5, Agree=4, Neutral=3, Disagree=2, Strongly Disagree=1).

Range = (5-1)/ 5 = 0.80.

Table (7) represents distribution of user groups according to the gradient in the search tool.





Table-7: Distribution of User Groups According to the Gradient in the Search Tool

Description Rang of Mean

Strongly Agree 5.00- <4.20

Agree 4.20- <3.40

Neutral 3.40- <2.60

Disagree 2.60- <1.80

Strongly Disagree 1.80- 1.00


Table (8) displays the means and the mean rank of each variable of all items of the scale, which clearly shows there is no

dispersion in the data and it is acceptable.

Table (8) shows that the Variable “interactivity” is ranked first with higher mean value, which indicate higher relationship with

purchase intention of product advertised via Twitter. The top most identifier in this category is “Twitter is an interactive

platform”.

The Variable “incentives” is ranked second as the indicators identified and factors have a higher mean value as well. The top most

identifier in this category is “Reduced price”. Variable “Attitude towards Twitter” is ranked third. The top most identifier in this

category is “consider it as excellent media” The Variable “Product category” is ranked last with a mean of 3.091.

Table-8: Means and Mean Rank of Factors

Variables Factors Mean Factor

Rank

Variable

Rank

Rank

Incentives 2-1 Reduced price. 3.86 1 3.476 2

2-2 Free gift. 3.49 6

2-3 Free sample. 3.38 10

2-4 A prize draw. 2.91 12

2-5 Voucher. 3.22 11

2-6 Additional warranty. 3.43 8

2-7 Pay half of the value when you buy another piece. 3.48 7

2-8 Refund for a month. 3.61 4

2-9 Exchange product. 3.59 5

2-10 A second piece free. 3.62 3

2-11 Discount for purchase in the future. 3.39 9

4-1 The presence of the Declaration of Twitter has a

positive influence in my intent to purchase.

3.73 2

Interactivity 1-6 I can communicate seamlessly with advertisers. 3.40 6 3.480 1

1-7 immediate response to my opinions and my queries 3.21 10

1-8 Available of enough space to inquire about

advertising.

3.38 8

1-9 Offers feedback. 3.16 11

1-10 Satisfied with the possibility of adding information

to the declaration.

3.38 8

1-11 Get enough information without delay. 3.26 9

2-12 Communication with advertisers. 3.46 7

2-13 Obtain additional information immediately. 3.55 4

2-14 Interaction with advertisers. 3.46 5

4-4 Twitter provides a feature of multi-directional

communication. 3.79

2

4-5 Twitter is an interactive platform. 4.00 1

4-6 Ability to interact with advertisers in Twitter has a

positive influence in my intent to purchase. 3.72

3

Product Category 1-1 Can advertise a variety of products. 3.55 3 3.091 4

1-2 Buying any type of product advertised. 2.37 5

1-3 Prefer Buy intangible products such as airline

tickets more than buy tangible products such as

perfumes.

2.97

4

1-4 Browsing through Twitter to search for specific

products. 2.30

6





4-2 Type of the advertised product in Twitter affect my

intent to purchase 3.73

1

4-3 Twitter ads attract me if they relate to products that

do not require inspection. 3.63

2

Attitude Towards

Twitter

3-1 Consider it as excellent media. 3.62 1 3.126 3

3-2 I trust them. 2.84 10

3-3 Prefer It than other advertising media. 2.92 9

3-4 Enjoy it. 3.29 3

3-5 Follow it more than other advertising media. 3.11 5

3-6 Attracts me. 3.24 4

3-7 Plan to buy products advertised through it. 3.04 8

4-7 Advertising through Twitter increases my intent to

purchase.

3.09 6

4-8 I can find relevant information about advertising on

Twitter.

3.40 2

4-9 Twitter ads is informative. 3.08 7

4-10 Twitter Ads credible. 2.76 11


Hypotheses Testing

Chi-square was used for testing hypotheses. The chi-square test is used to determine whether there is a significant difference

between the expected frequencies and the observed frequencies in one or more categories.

Scientists often use the Chi-square test to determine the goodness of fit between theoretical and experimental data, when the

calculated value of Chi-square exceeds the critical value, the data support the belief that a significant difference exists between

expected and actual values (Hinkle et al., 2003).

H01: There is no statistically significant relationship between incentives offered in Twitter advertisements and the effect of

purchasing intention of Saudi University students.

Based on the results in Table (9), there is strong evidence to assert that existing of incentives in Twitter advertisement have

significant influence on purchase intention. Therefore, Hypothesis is rejected and this is consistent with the research conducted by

(Shi et al., 2005).

Table-9: Chi-Square Test (Incentives)

The presence of the Declaration of Twitter

has a Positive Influence in my Intent To Purchase

Reduced price. 334.97**

Free gift. 298.70**

Free sample 250.77**

A prize draw. 140.63**

Voucher. 192.02**

Additional warranty 171.74**

Pay half of the value when you buy another piece 216.06**

Refund for a month. 167.75**

exchange product 163.20**

A second piece for free 275.23**

Discount for purchase in the future. 170.06**


Note: **Correlation is significant at the 0.01 level (2-tailed).

H02: There is no statistically significant relationship between product category promoted on Twitter advertisements and the

effect of purchasing intention of Saudi university students.

Based on the results in Table-10, there is strong evidence to assert that product category promoted on Twitter advertisements have

significant influence on purchase intention. Therefore, hypothesis is rejected and this is consistent with researches conducted by

(Girard et al. 2003) and (Grewal et al. 2002).





Table-10: Chi-Square Test (Product Category)

Type of the advertised

product in Twitter affect

my intent to purchase

Twitter ads attract me

if they relate to products

that do not require inspection

Can advertise a variety of products. 110.70** 112.59**

Buying any type of product advertised. 69.61** 47.26**

Prefer Buy intangible products such as airline tickets more

than buy tangible products such as perfumes. 56.34** 47.91**

Browsing through Twitter to search for specific products. 71.47** 74.72**


Note: **Correlation is significant at the 0.01 level (2-tailed).

H03: There is no statistically significant relationship between interactivity on Twitter advertisements and the effect of

purchasing of intention of Saudi university students.

Based on the results in Table (11), there is strong evidence to assert that interactivity on Twitter advertisements have significant

influence on purchase intention. Therefore, hypothesis is rejected.

Table-11: Chi-Square Test (Interactivity)


Note: ** Correlation is significant at the 0.01 level (2-tailed).

H04: There is no statistically significant relationship between attitude towards Twitter in general and the effect of purchasing

intention of Saudi university students.

Based on the results in Table (12), there is strong evidence to assert that attitude towards Twitter advertisement in general having

significant influence on purchase intention. Therefore, hypothesis is rejected and this is consistent with the research conducted by

(Bart et al., 2005).

Table-12: Chi-Square Test (Attitude towards Twitter)

Advertising through

Twitter Increases my

Intent to Purchase

I can find Relevant

Information about

Advertising on Twitter

Twitter Ads

is informative

Twitter Ads

Credible

I trust them. 246.20** 201.48** 141.27** 112.87**

Prefer It than other advertising media. 201.18** 184.62** 178.47** 234.70**

Enjoy it 261.21** 231.34** 226.48** 135.25**

Follow it more than other advertising

media. 275.84** 266.14** 160.76** 143.04**

Attracts me. 237.20** 175.22** 160.32** 93.85**

Plan to buy products advertised through

it. 288.01** 223.11** 171.22** 120.17**

I trust them. 336.31** 211.20** 166.37** 130.18**


Note: ** Correlation is significant at the 0.01 level (2-tailed).

Twitter Provides

A Feature of

Multi-Directional

Communication

Twitter is an

Interactive

Platform

Ability to Interact with

Advertisers in Twitter has

a Positive Influence in my

Intent to Purchase

I can communicate seamlessly with advertisers. 116.82** 100.30** 165.34**

Immediate response to my opinions and my queries. 132.35** 107.48** 164.48**

Available of enough space to inquire about advertising. 131.21** 127.60** 137.54**

Offers feedback. 160.30** 104.13** 116.59**

Satisfied with the possibility of adding information to

the declaration. 120.49** 123.22** 106.80**

Get enough information without delay. 171.83** 115.94** 161.08**

Interaction with advertisers. 142.04** 98.00** 192.02**

Communication with advertisers. 126.26** 89.63** 160.79**

Obtain additional information immediately. 121.11** 111.13** 157.97**





IMPLICATIONS AND RECOMMENDATIONS

Not only do the results of this study provide background on social media advertising influence on the purchase intentions but it

also provides valuable insight for current practitioners and helps reduce the academician-practitioner gap (Nyilasy and Reid,

2007). Specifically, understanding the culture of social media platforms and what do youth populations are seeking in social

media advertisements can lead to more effective advertising campaigns; it can also contribute to positively influencing the current

perceptions of online advertising.

This study provided practical implications. Based on current findings, SNS providers may be able to increase relational

communication and interactivity (i.e. personalized messages, announcement of new products, and promotional offers) positively

influence customers purchase intention Therefore, this study contributes to the literature on incentives and interactivity as it

provides valuable insight on enhancing Twitter advertisements by providing incentives in their ads and encourages SNSs

providers to maintain interactivity and high communications with online users. Further, based on current results, the relative

importance of both interactivity and incentives in influencing purchasing intentions was supported.

This study carries implications for both the advertising industry and social network operators, as new technologies emerge,

advertisers must push the boundaries of implementation and remain open to using social media differently than traditional media.

While social media share some commonalities with traditional media, the environment and overall nature of social media make

them a unique vehicle for advertising. As a new channel of communication, advertisers must find ways to leverage social media’s

value and match that value with consumer needs.

According to the results of this study, the operators of social networks and the intermediary of marketers should identify impacts

on the purchase intentions by the attributes of social network advertisements.

While advertisers must work harder to gain consumer attention, the new opportunities to build relationships with consumers in

social media allow advertisers to capitalize on their gained attention and convert their attention into profit. In the modern

consumer culture, sharing content can often be more valuable than a purchase. By sharing, the consumer is conveying positive

word of mouth, trust, and liking toward a brand, feelings that lead to greater brand equity and loyalty.

This study showed the increasing number of active Twitter users in Saudi Arabia, which give a great opportunity for companies to

improve their Twitter accounts and utilize it more as marketing tool. Using Twitter as marketing tool is not limited, as we

recommend having the young users to be more involved and interact more with companies by allowing them to manage the

company Twitter accounts this will carry several benefits for the company such as reaching large number of young users,

understanding the new trends and needs among youth, and be able to promote ads for youth in their way.

LIMITATION AND FUTURE RESEARCH

Our study reveals some interesting findings, but its generalizability is limited. First, the sample is restricted to 451 responses from

university students, conducted over only a three-month period. Therefore, it might be interesting if future research explore a

diverse population, comprising participants from various age groups, race classifications, and cultural backgrounds.

Second, further research into Twitter's potential for serving as an advertisement tool should adopt additional factors that are more

conducive to determining the influence on purchase intention Academic research focusing specifically on Twitter, to explain the

motivations for consumers' decisions to purchase a product, has been scarce Understanding these motivations and their possible

variations is essential for marketers attempting to build up their presence on Twitter.

Finally, the increasing popularity of cross-media promotions among advertisers demands studies that focus on this topic.

Additional research might explore how consumers integrate information on social media with information on other online and

offline media, such as magazines and televised ads.

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A STUDY ON CONSUMER PERCEPTION REGARDING PURCHASE OF PRODUCTS

FROM BIG MALLS IN BENGALURU

Dr. Mariyappa B.9

ABSTRACT

The present study aims at studying consumer perception regarding buying of products from big shopping malls in Bengaluru.

Services industry now-a-days is assuming different dimensions on account of changes in the living styles, level of income,

liking of branded goods, and readiness to spend more and more personal income. The study included the awareness level of

Bengaluru citizens regarding shopping malls and the factors influencing the customer decision to visit shopping malls and the

study of customer satisfaction level. All the respondents were personally contacted and administered structured, undisguised

and unbiased questionnaire in English. In addition to the primary data the study also relied upon secondary sources like

journals, newspapers and internet and about 300 respondents were surveyed using convenience sampling technique and

regular visiting shoppers were only considered and valuable data has been extracted.

KEYWORDS

Consumer Perceptions, Malls, Brands, Customer Decision, Awareness, Quality, Promotional Tools etc.

INTRODUCTION

Malls are central places and collection of different retail outlets run and managed by a separate management firm as a unit.

Organized retailing in India is in recent years is becoming popular and is capable of providing all the needs of modern customer in

one roof. Houses that are more industrial have entered this area and have announced very ambitious future expansion plans. Thus

in Bengaluru also malls have become a sensation in terms of changing lifestyle of people - the way they are shopping and

socialising1. Experience elsewhere in Asia reveals that the rush to develop the first generation shopping centers, without proper

notice and attention towards value and design resulted in more than failures. Researchers suggest that customers stay loyal to a

company if they feel that they are receiving greater value than they would from competitors (Sirdeshmukh et al., 2002)2. It is said

that in marketing that perceived customer value is the customers overall assessment of the ability of a product based on his

perception of what is received and what is given. Providing customers with perceived value or satisfaction is widely recognized as

a means of improving loyalty attention (Zethml, Berry and Parasuraman 1996)3.

Customer satisfaction, a term frequently used in marketing, in a measure of how products and services supplied by a company

meet or surpass customer expectation.4 Organization must retain the existing customers than searching unknown customers.

Customer satisfaction is measured at an aggregate level taking into different driving factors of customer satisfaction. The usual

measure of customer perception involves a survey with a set of statements using a Likert scale. Their satisfaction in generally

measure on a 5-point scale.

Evolution of Shopping Malls

The evolutionary process of century’s long back from community square markets to today’s malls sufficiently proves the

existence of continuous change in retail scenario. Originally, shopping places were close to the community settlement and in many

cases shopping places were very newar, within, walk able distance where people settled. Town squares gradually became popular

where merchants used to come and sell their products and farmers would market their agri products. At this stage since mobility

increased and carts were replaced by trucks and automobiles, which carried larger amount of products. International trade through

marine activity encouraged shopping different merchandise. By the end of 18th Century, the rail and public transportation

intensified the concentration of shopping, restaurant and service activity along with Main Street, which became permanent

markets.

The idea of mall generated in North America on account of mass-production of automobiles which made the people to settle in

suburbs to lead a better life. The people who lived in suburban’s wanted better products and shopping malls either a super market

or a pharmacy store in along with multiple smaller shops to provide all shopping needs. Departmental stores gave a different look

and changed the shopping centres. These stores with size from 120000 sq. ft. to 300,000 sq. ft. became highly popular and

delivered all the requirements of consumers and that is how they dominated the retail trade scenario. With the ever-changing life

styles expanded monthly income and liking of branded goods with readiness to spend more and more helped to establish big sized

global fame malls and the Bengaluru people shop in different malls. The malls at Bengaluru have become a sensation in terms of

changing the life styles of Indians.

9Associate Professor, Department of Commerce, BMS College for Women, Karnataka, India,[email protected]








Lieback (1993)5 reported that although there are slight variations from one to another store, most super markets are 12000-137000

sq. ft. in size and have a stock between 80000-100000 different products, provided attractive discount with external hours of trade.

Ha Hong et al., (2008)6 reveals customer satisfaction responses in the banking and super market industries. The authors concluded

that advertising spending on a service basis, along with customer orientation could influence customers’ expectations about

service quality and lead to satisfaction.

Goff et al., (1997)7 in their research paper they have concluded that if a firm is to be successful, it must understand that customers

expect from sales personnel in their market and make sure that their employees meet on better yet, exceed those expectations.

Shah (2001)8 reported that imagine the Kerala is the home to the largest organized retail chain in the country, there is a margin

free market (MFM), a 160 store chain selling almost everything from electronic and electrical appliances to food products,

beverages, FMCGs, stationeries and goods. It boosts of a Gross turn over Rs. 500 cr. for the year ended 2000.

Das (2000)9 revealed that the Indian situation is rather paradoxical. The number speaks for them. Indian Retail business

contributed 10-12% of the GDP, which is higher than some western economies. India boasts the largest global network with 12

million outlets. Further Das reveals that today150 of the fortune 500 companies and 25 of Asian top 200 companies are retailers.

Jacob (1993)10 stated that the field of retailing is both fascinating and appeasing. In US alone retailer firms sell goods and services

to the consumers for personal or household use employ millions of people and are approaching $ 2.5t in annual sales.

OBJECTIVES OF STUDY

To study the level of awareness of Bengaluru customers regarding the shopping mall.

To study factors influencing customers decision to visit shopping malls.

To study the satisfaction level of the customers regarding the shopping malls.

RESEARCH METHODOLOGY

Research Design

A descriptive conclusive research design was used to present the study. The study was conducted at Bengaluru to study the

consumer perception regarding the buy of products from big malls. Research design only provides a guideline for the researcher to

move in a right direction and achieve the stated goals.

Data Collection and Sampling Plan

The present study in order to understand customer perception towards purchase of products from big mall considers both primary

and secondary data. The primary data collected from the respondents who were personally contacted and administered structured,

undisguised and unbiased questionnaire. Secondary data was compiled from various journals, newspaper and internet. All the

customers who do visit big malls were considered as universe and population in all customers of shopping malls in Bengaluru.

The sampling technique of convenience was adopted and a sample size of 300 was found fit for the study. The study commenced

on Sept 15, 2014 and ended on Oct 14, 2014, about 350 questionnaires were administered, and around 50 were later rejected.

SURVEY FINDINGS

This chapter presents the analysis and findings of data collected through primary data. The data is collected with the help of

questionnaire and all objectives stated in the present study is included and covered. Table-1 shows that all the respondents are

visiting the shopping malls in Bengaluru and all the respondents are aware of shopping malls.

Table-2 shows that, one roof arrangement is very important to customers and high infrastructure is preferred as second option. 16

respondents out of 65 gave preference to ambience and 20 stood as neutral and 55 stand as either not important or least important.

The ANOVA analysis reveals that factors stated in the table do influence respondents visiting malls.

Table-3 shows that customers visit the shopping malls once in a week 20%, 120 respondents or 40% a majority visiting the malls

twice in a week. 36 respondents 12% visit the shop thrice in a month. Only 6 respondents expressed that any day visit depending

upon ceremonies or unspecified festivals. The chi-square analysis reveals that customers are visiting the malls regularly.

Table-4 reveals the data regarding products purchased by customers in the malls. The products purchased varied from clothes to

confectionaries. The customers expressed multiple options as far as their purchase is considered. 225 each or 75% visits the mall





to buy clothes and raw food. 300 respondents or all the respondents visited malls to buy consumer durables. 80 respondents or

27% visiting the malls to buy electronic products, 75 respondents on customers visited to purchase toiletries.

Table-5 shows that factors which influence the customer to purchase products from the shopping malls and maximum look at

quality, a few opt for home delivery, a few prefer fixed price 60% of the respondents buy the products because of availability of

fabulous discounts, and all customers are purchasing products just because of the variety available at shopping malls.

Table-6 reveals data as promotional tools followed by shopping malls. 100% customers say that promotional tools followed by

malls at Bengaluru are discounts and half of the customers say that coupons, buy one and get one, lucky draw scheme and

followed by malls at Bengaluru.

Table-7 reveals that 169 customers say that satisfaction level of customers is most important. Out of 169 customers, 29 gave

maximum preference to design and decoration, 28 each problem solving and parking, 24 exteriors, 22 stores image out of 92 who

expressed these factors are important and 24 gave preference to problem solving, 18 to reception and 16 to design and decorum.

Only 14 stood as neutral and 25 expressed either least important or not important. The ANOVA analysis data also reveals that

satisfaction factors are influencing satisfaction levels of customers.

CONCLUSION

The present study based on primary data, majority of the respondents have been aware of shopping malls at Bengaluru, and they

visit the shopping malls. Majority of the respondents who visited malls to buy different brands and importance was given to global

company brands. Respondent largely agreed that he stated factors in the table influenced to visit malls and ANOVA data supports

this conclusion. Majority of respondents visited malls twice in a week. All respondents purchase consumer durables, clothes and

raw food. Raw food is purchased because of micro families are more in number in Bengaluru.

A substantial portion of respondents purchased goods since malls offer qualitative products and second option given by

respondents was about fixed price. The perception measurement though difficult because of huge variations in consumer

behaviour, it can be said that respondents prefer only competitive novel products and any change in the composition of the

product is readily accepted. Several sales promotional techniques were used by the malls in order to attract the customer and to

create consumer loyalty. 100% respondents prefer discounts and half in case prefer the other sales promotional tools. It is found

that no sales promotional tool is permanent since many respondents prefer different varieties of promotional tools. Majority of the

respondents are highly satisfied with design, decoration, problem solving and parking facilities.

REFERENCES

1. Bansal, Gautam, & Singh, Amrinder. (2008). Study on consumer perception regarding purchase of products from big

shopping malls. Journal of IMS group, 5(2), 13.

2. Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value and loyalty in relationship exchanges. Journal of

Marketing, 66(1), 15-37.

3. Zeithml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of

Marketing, 60(2), 37-46.

4. Kour, Obeja Satnam. (2014). A study of sales promotion mix on customer satisfaction with reference to shopping malls

in Gwalior city. GITAM Journal of Management, 12(1), 79-94.

5. Lieback. (1993). Super stores new chapter in retailing, pp. 22-23. (PHI).

6. Ha, Youl Hong, & Sivahe, Muthaly. (2008). Effects of advertising on satisfaction: A comparison study of bank and

Supermarket Industries. Journal of current issues and research in advertising, 30 (2), 11P, 1, Diagram, 4 Charts ISSN

No. 1065-1734, 87-97.

7. Goff, Brent C., Bules, Janes S., Bellenger No. Daring, & Carrie, Stojack. (1997). The influence of salesperson selling

behaviour in customer satisfaction and products. Journal of retailing, 73(2), 171-183. ISS No. 022-0359.

8. Shah, K. (2001). Retailer book budget for sports market, pp. 98-99.

9. Das, S. (2000). Scenes from the malls, pp. 34-41. Bloom advertising and marketing.

10. Jacob, R. (1993). Beyond quality and value, pp. 10-11. Publisher: Dillards.





11. Retrieved from http://www.pimrindore.ac.in/LastIssueofPIJMR.pdf

APPENDIX

Table-1: Responses Regarding Shopping and Awareness among the People Regarding Shopping Malls

Respondents Visiting Malls Awareness among Respondents about malls

Option Response Percentage Option Response Percentage

Yes 300 100 Yes 300 100

No 0 0 No 0 0


Table-2: Factors Influencing the Respondents Visiting Malls

Factors VI I N NI LS Total

High infrastructure quality 29 9 3 4 5 50

One roof array 62 13 2 3 5 85

Availability of parking place 18 11 3 2 3 37

Approachability 20 7 3 4 6 40

Outlet of choice 11 9 4 5 3 32

Ambience 20 16 5 7 8 56

Total 160 65 20 25 30 300


Note: VI = Very Important, I = Important, N = Neutral, NI = Not Important, LS = Least Important

Hypotheses

H0: Factors do not influence respondents visiting malls Reject

H1: Factors do influences respondents visiting malls Accept

ANOVA Table

Source of Variation SS d.f. M.S F-ratio 5% F-limit

(From F-Table)

Between sample 1935.2780 (5-1)=4 1935.2780/4 483.8195/ F(4.25)

483.8195 70.8798 2.76

= 6.8259

Within Sample 1774.6994 (30-5)=25 1774.6994/25

70.8798

Total 3709.9774 (30-1)=29

ANOVA Analysis

The above ANOVA Table reveals that the F calculated value being 6.8259 more than the TV @ 5% level of significance with V1

= 4, and V2 = 25 rejects the null hypotheses and accepts the alternative. Therefore, we may conclude that the factors stated in the

table do influences respondents visiting malls.

Table-3: Frequency of Visiting Malls

Options Responses Percentage

Once in a week 60 20

Twice in a week 120 40

Thrice in a week 12 04

Once in a Month 32 11

Twice in a Month 34 11

Thrice in a Month 36 12

Any other (Festivals, Ceremonies) 06 02

Total 300 100


http://www.pimrindore.ac.in/LastIssueofPIJMR.pdf





Hypotheses

H0: Customers are not visiting malls regularly Reject

H1: Customers are visiting malls regularly Accept

Chi-square Table

Calculated value = 205.2708 d.f. = 6 Sig. level 5% t.v. = 12.592

Chi-square Table Analysis

The above Chi-square Table reveals that the calculated value being 205.2708 higher than the TV = 12.592@5% level of

significance with d.f. = 6 rejects the null hypotheses and accepts the alternative. Therefore, we may conclude that respondents

visit the malls regularly.

Table-4: Products Purchased by Respondents in the Malls

Produce Purchases Number of Responses Percentage

Clothes 225 75

Raw Food 225 75

Consumer Durables 300 100

Grocery 33 11

Toiletries 75 25

Kitchenware 36 12

Stationary 30 10

Electronics 80 27

Confectionaries 42 14


N is greater than 300 since respondents were asked to tick the multiple options.

Table-5: Factors Influencing the Customers to Purchase Products from the Shopping Malls

Influencing Factors Number of Respondents Percentage

Quality 225 75

Home delivery 15 5

Location 45 15

Fixed Price 165 55

Convenience 90 30

Discounts 180 60

Any other 60 20



Table-6: Promotional Tools followed by Shopping Malls

Promotional Tools Number of Respondents Percentage

Coupons 150 50

Discounts 300 100

Buy one get one 150 50

Lucky Draw 150 50

Free Gifts 100 33







Table-7: Satisfaction Level of Customers about Shopping Malls

Satisfactory Factor MI I No LS NI T

Reception & Treatment 20 18 1 1 1 41

Problem solving by salesman 28 24 2 1 2 57

Interiors 18 09 01 01 01 30

Design & Decoration 29 16 02 02 03 52

Exteriors 24 10 3 2 1 40

Parking 28 09 2 3 2 44

Stores Image 22 06 3 3 2 36

Total 169 92 14 13 12 300


Note: MI - Most Important, I - Important, N - Neutral, LS - Least Important, NI - No Important

Hypotheses

H0: Satisfaction factors are not influencing satisfaction levels of customers Reject

H1: Satisfaction factors are influencing satisfaction levels of customers Accept

ANOVA Table

Source of Variation SS d.f. M.S F-ratio 5% F-limit

(From F-Table)

Between sample 2789.9088 (5-1)=4 2798.9088/4 697.4772/ F(4.30)

697.4772 9.00001 2.61

= 77.4973

Within Sample 270.0003 (35-5)=30 270.003/30

9.00001

Total 3059.9011 (35-1)=34

ANOVA Analysis

The above ANOVA Table analysis reveals that he F calculated value being 77.4973 greater than TV=2.61 @ 5% level of

significance with d.f. V1 = 4 and V2 = 30 rejects the null hypotheses and accepts the alternative. Therefore, we may conclude that

satisfactory factors are influencing satisfaction level of customers.

*****




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conference reports, relevant reports & news, book reviews and briefs; and must reflect the standards of academic rigour.










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SPARE PARTS MANAGEMENT: AN OVERVIEW

Hemant Kumawat10

ABSTRACT

To keep the production of higher order and increased productivity, it is must that the availability of the machines may be

ensured. In order to ensure the availability of the maintenance and spare parts the system management must be effective. At

the same time, the increase in inventory of spare parts is a source of affecting the profits of any production/manufacturing

organization. Hence, the efficient & effective ‘Material Management’ which ultimately reflects to ‘spare parts management’ is

to be organized and achieved for the organization. This paper explores the importance of spare parts and basic control system

alternatives for Spare Parts Management. Further, this paper has also outlines various smart practices in Spare Parts

Management in the engineering industries.

KEYWORDS

Material Management, Productivity, Manufacturing, Spare Parts etc.

INTRODUCTION

To keep the production of higher order and increased productivity, it is must that the availability of the machines may be ensured.

In order to ensure the availability of the maintenance and spare parts the system management must be effective. At the same time,

the increase in inventory of spare parts is a source of affecting the profits of any production / manufacturing organization. Hence,

the efficient & effective ‘Material Management’, which ultimately reflects to ‘spare parts management’, is to be organized and

achieved for the organization.

MATERIAL MANAGEMENT: AN OVERVIEW

The most significant factor in the success of any large industrial organization / manufacturing unit or a mining unit is the

management of entire organization as a whole. This involves the dynamic leadership and contribution from each major function of

the organization for the success of the entire company. The major functions commonly / broadly are:

Personnel & Industrial Relations (HR Management),

Marketing,

Material Management,

Production & Maintenance,

Financing and Accounting,

Research & Development etc.

The ‘Material Management’ function can be said as the ‘heart’ of any organization. Right from purchase of items of capital nature

such as equipment and construction of machinery fabrication materials could be brought within the ambit of the materials

management function. The materials includes raw materials & brought out components, stores and spare parts for repairs and

maintenance, work in process & finished good/products. ‘Spare Parts Management ‘is the key task of the material management

department. The failure of ‘Spare Parts’ management to provide the desired spare or material for the production activity or failure

of a production machine, may cause to hamper the production & losses which in turn is an overall loss to the organization and the

further inability to manage the ‘spare part may cause to the closure of the organization, under the banner of sick unit. However,

optimistically we hope that such a situation should not arise because of ‘Material Management’ & ‘Spare Parts Management’.

WHAT IS SPARE PARTS MANAGEMENT?

Spare Part/s is a physical stock of the material for smooth operation. Spare Parts Management is the technique of maintaining

stocks of resources with the minimum investment. Interest is paid on money blocked in spare parts and therefore slow inventories

increase the cost of production whereas quick inventories result in larger profits. Spare Parts are necessary to maintain smooth and

continuous production and to provide safety against price-rise and scarcity. It is also counteracts ill effects of wrong sale

forecasting, faulty production planning and unbalanced manufacturing capabilities. Regarding spare parts what, how much, why

and when to buy is main questions and on their decisions depend the failure or success of spare parts control. Spare Parts hold-up

occurs when quantities received are more than planned, arrivals are earlier than scheduled, consumption is less than planned,

10 Deputy Manager (Material Management), Rajasthan State Mines & Minerals Limited Jhamarkotra, India,

[email protected]






rejections are less than provided for and stocks outs occurs when quantities received are less than planned, arrivals are delayed,

consumption is more than planned, rejections are higher than anticipated.

Figure-1


Spare parts involve cost, reduction means saving, and savings means availability of more working capital. However, reduction

means less inventory available, hence controlling and management is required.

OBJECTIVES OF SPARE PARTS MANAGEMENT?

To reduce the investment in the spare parts.

Minimize the idle time of each spare parts by avoiding stock outs and the shortages.

SPARE PARTS COST (COST INVOLVED IN SPARE PARTS)

Figure-2


SYSTEM ALTERNATIVES AND MODELS

There are two basic control system alternatives for Spare Parts Management:

Order Point Control or Max. Min Systems,

Periodic Review Systems.

In the former, an order for a fixed quantity is placed as soon as stocks fall below a pre-defined ordering level. The system

parameters are, therefore, the order quantity and the ordering level. The order quantity can either be estimated or worked out

mathematically by using a standard formula for the Economic Order Quantity (EOQ) and the Ordering Level would normally

cover lead-time consumption and safety stocks.





In contrast to Order Point Control, Periodic Review Systems (also called periodic Reorder System) have fixed periods between

orders and regulates inventory by variable order quantities at each review. Such a system has advantages where there are high

expenditure items, many items are ordered from the same supplies and ordering jointly help, long-term date on consumption

pattern and lead-time is not available.

Under the circumstances, this system aims at finding the Desired Inventory Level (DIL) based on set of assumptions, which are

checked from time to time for validity. The periodical checks or review also results in the creation of a more reliable database,

which in turn enables the formulation of more realistic estimates. The formula for calculating the desired inventory level (DIL) is

as follow:

DIL = C (LT +RT) + S

Where LT= Lead Time in months

RT= Review Period in Months

C= Consumption

C (LT+RT) = Expected Consumption over Lead Time plus Review Period in units

S= Safety Stocks in units

The decision rule at each review becomes:

Order Quantity Q= DIL- (QO+ I)

Where QO represents on order and I represents Inventory on Hand for any particular item of stock.

Summary of Approach

We can now summarize our approach to DIL and order quantity as follows:

DIL: Expected consumption for the period of lead-time and review time (in months) plus safety stocks in months.

Order Quantity: DIL minus quantity on order and in hand.

Economic Order Quantity : Cost of inventory with respect to EOQ is sum of ‘ordering cost’ and inventory carrying

cost’ and it can be shown that economic order quantity is obtained when annual ordering cost is equal to annual

inventory carrying cost and it results in lowest annual inventory cost. EOQ analysis provides a sound basis to determine

size of the order or number of orders per annum but its main limitation is that it does not consider lead-time and hence

when to order is not indicated.

Practical Models: In practice, lead-time varies and demand fluctuates with respect to time and therefore it is necessary

to keep safety stock and reserve stock in addition to buffer stock. Safety stock provides a cushion for lead-time

fluctuations and reserve stock takes care of fluctuation in demand.

Q system: In this system quantity to be ordered is kept fixed equal to economic order quantity and other is placed as

soon as stock in hand and stock on order falls short of sum of buffer stock, reserve stock and safety stock.

Recorder Point = Buffer Stock + Reserve Stock + Safety Stock

Figure-3 explains this system. This system is most suitable for ‘A’ items since continuous attention is paid to stock at hand stock

on order.

P System: In this system, order is placed after a fixed time interval called review time.

Review Time= EOQ/M

M is the annual consumption

Desired Inventory Level (DIL) is defined as sum of buffer stock, reserve stock and safety stock.

Quantity to be ordered= DIL- Stock in Hand-Stock at Order.

Figure 4 explains this system. This system is suitable for B & C items since only periodic attentions are necessary for these items.





Figure 3: EOQ Analysis


Figure-4: Q System


Safety stock in both Q&P system is average demand during maximum delay multiplied by probability of delay. However, buffer

stock and Reserve stock have slightly different meaning in Q & P system. Buffer stock in Q system is average demand during

average lead-time whereas in case of P system this duration is average lead-time plus review time. Similarly, in Q system reserve

stock is variation in demand during average lead-time whereas in P system this duration is average lead-time plus review time.

Figure-5: P System






SMART PRACTICES IN SPARE PARTS MANAGEMENT

Given the complexities and the growing criticality of the spare parts management function, it is essential that the spare parts

management solution meet the critical requirements during any implementation. Some of these are:

Multi-model based inventory management – ability to plan for parts based on a variety of models such as criticality

models, cost models or movement models or a mix of various models.

Optimization models for multi-echelon inventory to deploy inventory at various locations based on need, criticality,

service response, etc.

Capabilities for operational as well as tactical planning – integration with production and operational plans to optimize

equipment availability; optimize the spare storage with respect to usable life as well as storage space, etc.

A variety of forecasting algorithms that can meet different kinds of demand profiles such as intermittent demand

models, attribute based demand models, etc.

Ability to handle part alternates and substitution – ability to capture substitution relationships at the planning level as

well as incorporate substitution logic during service execution.

Dynamic updating of part and location – ability to dynamically update part availability due to location transfers.

Handle spare part expiry and help maximize usable life.

Ability to handle supersession and obsolescence.

Ability to track service levels and parts consumption and to dynamically update the plans based on current patterns.

Ability to do “What If” analysis based on service levels for inventory planning.

Integration with PDM applications for accessing part design data and the ability to provide design changes and part

changes based on repair and part substitution.

Ability to do cycle counts and provide a variety of models for setting up cycle counts based on parts consumption,

parts value, etc.

Ability to attach part serial numbers for tracking across various stages such as stocking, consumption for an equipment

repair, parts repair, parts return etc.

Use of performance metrics such as MTTR, MTTF, Unplanned Maintenance Downtime and service costs to monitor

the efficiency of the main tenance and service processes.

Other best practices that have an enterprise scope could include:

Production Schedules to include the preventive maintenance program.

Joint Operations and Maintenance Planning.

Single ownership for operations and maintenance.

CONCLUSION

The availability of spare parts in time/ just in time is the lifeline for the maintenance engineers to make the machines ready for the

production & in-turn the available production people may be able to achieve the production/targets goals. By applying the latest

innovative techniques of spare parts management, any organization may be able to have the adequate numbers of spare parts by

EOQ & other techniques.

In private sector organizations the bring, borrow or steal philosophy of spare parts management is adopters practiced but in the

public sector/government organizations the user/stores/purchase people on-line communications/information available on

computers is preferred about the materials availability/flow, this will definitely smoothens the supply chain system of the spare

parts.

REFERENCES

1. Gerald, L. (1965, June). On the Parts Requirements Problem. Operations Research, 13(3), 453-461. Retrieved from

http://www.jstor.org/action/doBasicSearch?Query=au:%22Gerald+L.+Thompson%22&wc=on

2. Dale, A., Flowers, James, B., &, O'Neill. (1978, February). An Application of Classical Inventory Analysis to a Spare

Parts Inventory. Interfaces, 8(2), 76-79. Retrieved from

http://www.jstor.org/stable/25059599?&Search=yes&searchText=parts&searchText=management&searchText=Spare&li

st=hide&searchUri=/action/doBasicSearch?Query%3D%2BSpare%2Bparts%2Bmanagement%26gw%3Djtx%26prq%3

DMaterial%2BAND%2BSpare%2Bparts%2Bmanagement%26Search%3DSearch%26hp%3D25%26wc%3Don&prevSe

arch=&item=16&ttl=12667&returnArticleService=showFullText

3. Schweitzer, I. (1980). The Economic Nature of a Shortage Phenomenon: The Spare Parts Problem in Hungary. Acta

Oeconomica, 25(¾), 247-258. Retrieved from

http://www.jstor.org/stable/167809?&Search=yes&searchText=parts&searchText=management&searchText=Spare&list=hide&searchUri=/action/doBasicResults?hp%3D25%26la%3D%26wc%3Don%26acc%3Doff%26gw%3Djtx%26jcpsi%3D1%26artsi%3D1%26Query%3D%2BSpare%2Bparts%2Bmanagement%26sbq%3D%2BSpare%2Bparts%2Bmanagement%26prq%3DMaterial%2BAND%2BSpare%2Bparts%2Bmanagement%26si%3D26%26jtxsi%3D26&prevSearch=&item=36&ttl=12667&returnArticleService=showFullText

http://www.jstor.org/action/doBasicSearch?Query=au:%22A.+Dale+Flowers%22&wc=on

http://www.jstor.org/action/doBasicSearch?Query=au:%22James+B.+O%27Neill%22&wc=on

http://www.jstor.org/action/doBasicSearch?Query=au:%22James+B.+O%27Neill%22&wc=on

http://www.jstor.org/stable/25059599?&Search=yes&searchText=parts&searchText=management&searchText=Spare&list=hide&searchUri=/action/doBasicSearch?Query%3D%2BSpare%2Bparts%2Bmanagement%26gw%3Djtx%26prq%3DMaterial%2BAND%2BSpare%2Bparts%2Bmanagement%26Search%3DSearch%26hp%3D25%26wc%3Don&prevSearch=&item=16&ttl=12667&returnArticleService=showFullText






http://www.jstor.org/stable/40728774?&Search=yes&searchText=parts&searchText=management&searchText=Spare&li

st=hide&searchUri=/action/doBasicSearch?Query%3D%2BSpare%2Bparts%2Bmanagement%26gw%3Djtx%26prq%3

DMaterial%2BAND%2BSpare%2Bparts%2Bmanagement%26Search%3DSearch%26hp%3D25%26wc%3Don&prevSe

arch=&item=21&ttl=12667&returnArticleService=showFullText

4. Klein, W. K., Haneveld, R., & H. Teunter, (1997, February). Optimal Provisioning Strategies for Slow Moving Spare

Parts with Small Lead Times. The Journal of the Operational Research Society, 48(2), 184-194. Retrieved from

http://www.jstor.org/action/doBasicSearch?Query=au:%22W.+K.+Klein+Haneveld%22&wc=on

5. Williams, B., & Tokar, T. A review of inventory management research in major logistics journals: Themes and future

directions. Emerald Group Publishing Limited. DOI: 10.1108/09574090810895960 (Permanent URL).

6. Retrieved from http://www.sparepartsmanagement.co.in/Best%20Practices%20In%20Spare%20Parts%20Management.html

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SPORTS TOURISM: FOCUS ON SOME TRADITIONAL GAMES

AND MARTIAL SPORTS / MARTIAL ARTS OF INDIA

Haridas Kuloor11

ABSTRACT

The modern world appears to be much more concerned about sports. The hold of the sports has grown very strong on the mind

of an individual in society. Sportsmen and spectators are very clear about the value and significance of sports and there is

hardly an individual who has been left out of its impact. At present, winning competition involves national prestige as each

nation strives to win.

Certain nations even try to project the superiority of their political and social systems through achievement in the field of

sports. They bring name, fame and laurels for their countries and raise their prestige high in the world. In order to give the best

possible performance at any of the competition, the assistance of scientific disciplines is sought. Sport tourism refers to the

experience of travel to engage in or view sport-related activities. The people visit other places or countries to engage in sports

or view sports related activities are called as sports tourism.

KEYWORDS

Sports Tourism, Traditional Games, Martial Sports, Martial Arts etc.

INTRODUCTION

Tourism and sport are key elements of today’s culture and have a specific influence on the behavior of society. Now a days sport

has become a huge international matter with large amount of media attention, money and political interest. On the other hand,

tourism remains the world’s largest industry as well as very developing and growing. For this reason, a combination between the

two can be very lucrative and has a lot of cultural influence. Sport and tourism can in different ways contribute to each other’s

development.

In generally, trips taken to participate in sports events are known as sports tourism. The sports persons, spectators,

officials/referees etc., are known as sports tourists. They travel to participate in sports related activities but in leisure time the

visit the places around the venue. However, their main aim to travel is participate in sports related activities it may be as

competitor or spectator or assist the sports person or to conduct the event or report to the media etc.

Broadly, defined, sport tourism includes travel away from one’s primary residence to participate in a sport activity for recreation

or competition, travel to observe sport at the grassroots or elite level, and travel to visit a sport attraction such as a sport hall of

fame or a water park (Gibson et al.)

Individuals and/or groups of people who actively of passively participate in competitive or recreational sport while travelling.

Sport is the prime motivation to travel, although the touristic element may reinforce the overall experience. 1997).

DOMAINS OF SPORTS TOURISM

Mega Events / Hall Mark Evens: Mega events can be described as events, which are so large in scale, they have to affect the host

city or nations economic and reverberate throughout the global media. Such events are usually identified as global sporting events

or mega events. For example: Olympic games, FIFA world cup, Commonwealth games, Asian games, cricket world cup etc. The

very nature of these events draws upon a global audience due to the participating nations. This draws great attention.

Outdoor Recreation Activities (Adventure Sport / Traditional Games / Martial Sports): Outdoor recreation represents second

related area is inextricably linked to sports tourism. The essence of this contextual domain lies in recreational activities that occur

within natural settings, many of such as canoeing, skiing, surfing, paragliding, heli-skiing, jeep safari, water rafting etc.

Health and Fitness activities provide a third related domain of relevance to sport tourism. Some resorts provide health and fitness

related activities for tourists. Here they give some physical activities or recreational activities, which are, relates to the health and

fitness. In holidays, the people visit these kinds of resorts to participate in physical activities and to get physical and mental

relaxation.

11Assistant Director (Physical Education), FMKMC College, Madikeri, India, [email protected]






Some of the traditional games are:

ChinniDanda (GilliDanda)

Buguri (Spinning the Top)

Goli (marbles)

Donne Varase

Kabaddi

Kallu Gundu Ettuvudu

MallaKamba

Lagori

Soorchendu

Gonichiladata

Kuntebille (Hopscotch)

MooruKaalina Ota

Pirichendu

Pyramid Madake

Kambala

Kesarugadde Ota

HaggaJaggata

Channe Mane

Natikambalaota

Kuntata (Hop and catch)

Gultoria

Vallamkali or Snake Boat Race

Vallamkali or the Snake Boat Race is the most enchanting facet of the festival of Onam. The event is promoted as a major tourist

attraction of the state of Kerala and draws a large number of domestic and international tourists. Vallamkali has been going on for

good number of years and its popularity is soaring with each passing year. Much credit for the success of Snake Boat Race can be

attributed to Pandit Jawaharlal Nehru who was so enamored by this colorful event that he instituted a trophy for the race.

Jallikattu (bull baiting) Tamil Nadu

Jallikattu, which is bull baiting or bull cuddling/holding, is a Tamil tradition called 'Yeruthazhuvuthal' in Sangam literature

(meaning, to embrace bulls), popular amongst warriors during the Tamil classical period. Bull fighting was has been common

among the ancient tribes who lived in the ‘Mullai’ geographical division of Tamil Nadu Later, it became a sport conducted for

entertainment and was called ‘YeruthuKattu’ in which a fast running bull was corralled with ropes around its neck. In the Naik

era, prize money was introduced and the sport became a display of bravery. The term Jallikattu was coined in this era. ‘Jalli’

referred to the silver or gold coins tied to the bulls’ horns. According to legend, in olden days women to choose their husbands

used the game. Successful "matadors" were chosen as grooms. The term jallikaṭṭu comes from the term calli kācu (coins)

and kaṭṭu (meaning a package) tied to the horns of the bulls as the prize money. Later days during the colonial period, this evolved

to jallikattu, which is the term currently used. A seal from the Indus Valley Civilization depicting the sport is preserved in

the National Museum.

Lagori

Lagori, dikori or lagoori widely played in south India is a game played between two teams in an unlimited area involving a ball

and a pile of flat stones. A member of one team (the seekers) throws a soft ball at a pile of stones to knock them over. Then the

seekers try to restore the pile of stones while the opposing team (the hitters) throws the ball at them. If the ball touches a seeker,

he is out and his team continues without him. However, a team member can always safeguard himself by touching the opposite

team member before the ball hits him.

These additional rules make the game even more interesting.

Clearly mark the boundary. If any of the seekers crosses it then he is out.

If the person trying to knock down the pile cannot do it in three tries then he is out.

In any of the three tries, if the thrower's ball does not knock down the pile and is caught by an opponent after the first

bounce then the thrower is out.

If the thrower's ball bounces off the pile and an opponent catches it then the thrower's whole team is out.

If the seekers succeed in restoring the pile then they can use the point scored to buy back their ousted teammate.

In other parts of the country, the same game is known by the name as lingprchya in Maharashtra, as pitttu in Haryana,

In Andhra Pradesh is called yedupenkulata, dikori. In Kerala, it is known as dabbakali , and in Tamil Nadu as

"ezhukallu"

Kambala is traditionally a simple sport, which provides much needed entertainment to the rural people. The 'track' used for

Kambala is a paddy field filled with slush and mud. The contest generally takes place between two pairs of buffaloes, each pair

raced in wet rice fields, controlled by a whip-lashing farmer. In olden days, the winning pair of buffaloes was rewarded with

coconuts and a bunch of plantains and nowadays, gold coins, silver coins are given; in some competitions, cash award is also in

vogue. Some organizing committees award eight-gram gold coin as first prize. However, Kambala today has become an organized

rural sport, with elaborate planning and timetable for Kambala at different places. The "Kambala Committee" is formed and it

usually arranges Kambala in several categories like Kane Halage, HaggaHiriya, HaggaKiriya, Halage, AddaHalageetc. People

place massive bets on the buffaloes to win and one can witness more than 20,000 spectators in a well-organized Kambala, egging

on and cheering the buffaloes to complete the race. In traditional form of Kambala, racing is non-competitive, and he-buffalo pairs

run one by one in paddy fields. A ritualistic approach is also there, as some agriculturists race their he-buffaloes for thanks giving

(to god) for protecting their animals from diseases (e.g. in Vandaru, Choradi villages). Innovations are made in conducting

kambala race and in some places day and night races are arranged under floodlights.

http://en.wikipedia.org/wiki/Sangam_period

http://en.wikipedia.org/wiki/Indus_Valley_Civilization

http://en.wikipedia.org/wiki/National_Museum,_New_Delhi





Mallakamba

Originally, mallakhamb was introduced as a supporting exercise for wrestlers. Only major grips can be developed with a pole and

used cane instead of a pole. Subsequently, the unavailability of cane resulted in rope mallakhamb. Almost 25 to 30 types of

mallakhamb apparatus were tried and tested over the years. The mallakhamb pole used in competitions is a straight pole made

of teak wood, standing 2.6 meters (8.5 ft) in height with a circumference of 55 centimeters (22 in) at the base. It gradually tapers

to a circumference of 35 centimeters (14 in) at the top.

Gilli-Danda

It is a sport played in the rural areas all over India. The game is played with two sticks: a large one called a danda, which is used

to hit a smaller one, the gilli. In telugu name as gootibilla, tamil-kittipul, marati-vittidadndu and in malayalamkuttiyumkolum.

Standing in a small circle, the player balances the gilli on a stone in an inclined manner (somewhat like a see-saw) with one end of

the gilli touching the ground while the other end is in the air. The player then uses the danda to hit the gilli at the raised end,

which flips it into the air. While it is in the air, the player strikes the gilli, hitting it as far as possible. Having struck the gilli, the

player is required to run and touch a pre-agreed point outside the circle before the gilli is retrieved by an opponent. There is no

official maximum number of players or teams. Gilli-danda can be played where each individual plays for themselves, or between

two teams.

MARTIAL ARTS

The term martial arts, simply means 'arts concerned with the waging of war'. Many of the martial arts we know today originated

from ancient war skills. In time, man's search for a more profound meaning of life, led to the development of a higher level of

fighting. Although the fighting arts in each nation differ from one another, there is a common thread in the tapestry of martial arts

- anonymity. Large numbers of people are attracted to this art because of its self-defensive potential. At one time, Judo was the

focus of interest, but since it became an Olympic discipline, it has tended to lose its total image, and become a mere discipline.

Karate, Kung-fu, and Du-Jutsu are the other arts, which attract those who feel themselves to be in need of an instant personal

deterrent, and wish to be stronger, fitter, and more self-confident. Some of the Indian martial arts forms are:

Kalari Payattu

Kalari is the Malayalam (language spoken in Kerala) word, for a special kind of gymnasium, where the martial art known as

KalariPayattu, is practiced. It had its origins in the 4th century A. D. Legends claim, that the art began with the sage Parasurama,

who possessed mystical powers. He built temples and introduced martial arts, which have influenced and shaped many other arts.

The art reached its zenith in the 16th century, in the days of ThacholiOthenan - a celebrated chieftain of north Malabar. A

KalariPayattu demonstration includes physical exercises and mock duels - armed and unarmed combat. It is not accompanied by

any music or drumming, but is a silent combat, where style matters the most. Women practice KalariPayattu also. Unniyarcha was

a legendary hero, who won many battles with distinction. Today, KalariPayattu is a method of physical fitness, and an empty-

handed means of self-defense. Yet, it is tied to traditional ceremonies and rituals.

Silambam

The state of Tamil Nadu is considered the cradle of modern and scientific staff fencing, popularly known in Tamil as Silambam.

The Pandya kings ruling in Tamil Nadu promoted Silambam fencing, as did their Chola and Chera

counterparts. Silapathiharam Tamil literature, dating back to 2nd century A.D., refers to the sale of silamabam staves, swords,

pearls and armor to foreign traders. The ancient trading centre at Madurai city, renowned globally, was said to be thronged by

Romans, Greeks, and Egyptians among others who had regular sea trade with the ancient Dravidian kings. The silambam staff was

one of the martial art weapons that were in great demand with the visitors. The use of the long staff for self - defenses or mock -

fighting was a highly organized game in the state as early as the 1st and 2nd centuries A.D. In the Vedic age, young men were

imparted training to defend themselves with staves, both as a ritual and an emergency. The staves wielded by ace fencers were

given distinctive names, and treated with reverence. Some records trace the origin of this art to a divine source - Lord Muruga,

and within the Tamil mythological framework, sage Agasthya is also credited with the genesis of Silambam. Silambam is believed

to have travelled from Tamil Nadu to Malaysia, where it is now a popular recreational sport and a mode of self - defense.Four

different types of staves are used in this activity. One produces a sonorous, swishing sound, another involves lighted balls of cloth

at one end of the staves, called 'torch silambam', a third is quite short in length nevertheless powerful, and finally a non - elastic

staff that produces a clattering sound. Today this rather simplistic art form is a mode of self-defense used by the common folk of

Tamil Nadu.

Thoda

Thoda, the impressive martial art form of Himachal Pradesh, relies on one's archery prowess, dating back to the days of the

Mahabharata, when bows and arrows were used in the epic battles, between the Pandavas and the Kauravas, residing in the





picturesque valleys of Kulu and Manali. Thus, this martial art has its origin in Kulu. Thoda, the name is derived, from the round

piece of wood fixed to the head of the arrow, which is used to blunt its wounding potential. The equipment required for this game

is bows and arrows. Skilled and traditional artisans prepare wooden bows measuring 1.5m to 2m, to suit the height of the archer

and wooden arrows in proportion to the length of the bow. In Himachal Pradesh, in earlier days, the game of Rhoda was organized

in a very interesting way. A handful of village folk would go to another village, and would throw tree leaves into the village well,

before sunrise. They would, then, hide in the bushes nearby, just outside the boundary of that village. As soon as the villagers

came to draw water, the youths would shout, and throw challenges to them for a fight. This would spark the preparations for an

encounter. The competition is a mixture of martial arts, culture and sport, and is held on Baisakhi Day, April 13 and 14, and

community prayers are organized to invoke the blessings of the principal deities, Goddesses Mashoo and Durga.

Thang - ta & Sarit – Sarak

The history of Thang - ta and Sarit - Sarak can be traced to the 17th century. Thang - ta involves using a sword or spear against

one or more opponents. Sarit - Sarak is the technique of fighting against armed or unarmed opponents, but on many occasions,

there is a combined approach to the training of these martial arts. These martial arts were used with great success by the Manipuri

kings to fight against the British for a long time. With the British occupation of the region, martial arts were banned, but post -

1950s saw the resurgence of these arts.

Demonstrating a duel between Thang (a sword) and a Ta (a spear)

Thang - ta is practiced in three different ways. The first way is ritual in nature, related to the tantric practices. The second way

consists of a spectacular performance-involving sword and spear dances. These dances can be converted into actual fighting

practices. The third way is the actual fighting technique.

The Sarit - Sarak art of unarmed combat is quite distinct from other martial art forms. It is simply flawless in its evasive and

offensive action, as compared to any other existing martial art of the same school.

Legend has it that Lainingthou Pakhangba, the dragon god - king, ordained King Mungyamba, to kill the demon Moydana of

Khagi with a spear and sword, which he presented to the king. According to another such legend, God made the spear and sword

with creation of the world. This amazing wealth of Manipuri martial arts has been well preserved, since the days of god king

Nongda Laire lPakhangba. The fascinating Manipuri dance also traces its origin from these martial arts.

Cheibi Gad-Ga

This is one of Manipur's most ancient martial arts. The fighting equipment comprises a sword, a shield, now modified to a stick

encased in soft leather, and a shield made of leather. The contestants fight a duel, and victory goes to the person, who scores the

maximum points. In ancient times, the contestants used sword and spears. Victory in this martial art depends more on skill, than

brawn and brute force.

The competition is held on a flat surface, within a circle, with a diameter of 7 meters. There are two lines of one-meter length each

in the circle, with a space of two meters between them. The 'cheibi' stick is 2 to 2.5 feet in length.

CONCLUSION

Generally, Traditional games are played for recreation in leisure time, but involving in traditional games the person gets both

physical fitness and mental relaxation. Systematic practice in the martial arts a person's physical fitness may be boosted (strength,

stamina, flexibility, movement coordination, etc.) muscular system is activated. Beyond martial arts training also has benefits

for mental health contributing to self-esteem, self -control, emotional and spiritual wellbeing. Recent days by the popularity of

modern games like cricket etc., our tradition games are neglected. These games are also to be promoted.

REFERENCES

1. Mathur, Arpitha. (2011). Fundamentals of travel and tourism. Ane Books Private Limited.

2. Mahapatra, Achintya. (2013). Development of Indian tourism industry. Abhijeeth Publication.

3. Donohue, J., & Taylor, K. (1994). The classification of the fighting arts. Journal of Asian Martial Arts, 3(4).

4. Ghosh, C. N. (2008). Sports games and adventure sports. Manas Publications.

5. Kumar, Rajesh. (2009). Sports adventure and recreational tourism. SBS Publishers.





6. Sharply, Richard. (2006). Travel and tourism (1st Ed.). SAGE Publication.

7. Modi, Shalini. (2001). Tourism and society. Amazon Publications.

8. Hinch, Thomas, & Highan, James. (2003). Aspects of tourism (1st Ed.). Channel View Publication.

9. Yograjthani, & Lokeshthani. (1992). The Encyclopedia of sports, volume-I. Gian Publication House.

10. Narayan, S. (1995). Play and game in tribal India. New Delhi: Common Wealth Publisher.

11. Retrieved from http://lifework.wordpress.com/category/martial-arts/

12. Retrieved from http://defence.pk/threads/martial-arts-of-india.30021

13. Retrieved from http://en.wikipedia.org/wiki/Gilli_Danda

14. Retrieved from http://en.wikipedia.org/wiki/Jallikattu

15. Retrieved from http://en.wikipedia.org/wiki/Kambala

16. Retrieved from http://en.wikipedia.org/wiki/Lagori

17. Retrieved from http://hicc-ev.tripod.com/id14.html

18. Retrieved from http://ibnlive.in.com/news/rural-olympics-boat-races-and-buffalo-races-10-lesser-known-sports-in-ind...

19. Retrieved from http://indiareflects.com/?it_news_=vibrant-onam-festival

20. Retrieved from http://inovplacebranding.blogspot.in/2013/03/a-importancia-do-surf-para-o-city.html

21. Retrieved from http://lifework.wordpress.com/category/martial-arts

22. Retrieved from http://partners.academic.ru/dic.nsf/enwiki/11604307

23. Retrieved from http://prafulla.net/graphics/photography/the-ancient-indian-extreme-sport-of-mallakhamb

24. Retrieved from http://www.digplanet.com/wiki/Jallikattu

25. Retrieved from http://www.digplanet.com/wiki/Lagori

26. Retrieved from http://www.martialexpert.com/martial_arts/indian_martial_arts.html

27. Retrieved from http://www.onamfestival.org/onam-attraction.html

28. Retrieved from http://www.thebetterindia.com/10492/lesser-known-traditional-games-sports-india

29. Retrieved from https://www.facebook.com/pages/KAMBALA/213806901966360

30. Retrieved from https://www.flickr.com/photos/krupa_flickr/12054920846

31. Retrieved from https://www.flickr.com/photos/ramesh_lalwani/2518597770

32. Retrieved from https://www.youtube.com/watch?v=45AF2GKQOqE

33. Retrieved from https://www.youtube.com/watch?v=CPPNbmdQNdM

*****

http://lifework.wordpress.com/category/martial-arts/

http://defence.pk/threads/martial-arts-of-india.30021

http://en.wikipedia.org/wiki/Gilli_Danda

http://en.wikipedia.org/wiki/Jallikattu

http://en.wikipedia.org/wiki/Kambala

http://en.wikipedia.org/wiki/Lagori

http://hicc-ev.tripod.com/id14.html

http://ibnlive.in.com/news/rural-olympics-boat-races-and-buffalo-races-10-lesser-known-sports-in-ind

http://indiareflects.com/?it_news_=vibrant-onam-festival

http://inovplacebranding.blogspot.in/2013/03/a-importancia-do-surf-para-o-city.html

http://lifework.wordpress.com/category/martial-arts

http://partners.academic.ru/dic.nsf/enwiki/11604307

http://prafulla.net/graphics/photography/the-ancient-indian-extreme-sport-of-mallakhamb

http://www.digplanet.com/wiki/Jallikattu

http://www.digplanet.com/wiki/Lagori

http://www.martialexpert.com/martial_arts/indian_martial_arts.html

http://www.onamfestival.org/onam-attraction.html

http://www.thebetterindia.com/10492/lesser-known-traditional-games-sports-india

https://www.facebook.com/pages/KAMBALA/213806901966360

https://www.flickr.com/photos/krupa_flickr/12054920846

https://www.flickr.com/photos/ramesh_lalwani/2518597770

https://www.youtube.com/watch?v=45AF2GKQOqE

https://www.youtube.com/watch?v=CPPNbmdQNdM





MANAGEMENT EDUCATION IN BENGALURU: ISSUES AND CHALLENGES

Dr. Suhas B. M.12

ABSTRACT

Management education is progressive since 2000. At present there are 1800 B-schools and is about 80-100 B-schools are

added every year to this. MBA programmes are offered by different types of institutions such as university, colleges, private

colleges affiliated to university, private universities and autonomous business schools. However, the increase in the numbers

may provide employment for the huge graduate population but the question of quality of education provided in B-schools still

unsolved. We cannot compare the quality of teaching in B-schools to western countries. Indian B-schools almost replica of US

Business particularly in the area of pedagogy, industrial interface and academic research, but it is tangently found that Indian

B-schools are struggling hard to introduce several adoptions and to provide high qualitative education.

Excellency in any area is required to achieve the stated objectives. Excellency in economic side requires excellent managers

who are capable of conceptualizing ideas, converting them into products and services, satisfying customer needs enabling

seamless working and continuous maintenance of competitiveness. Again unfortunately, India continues to lag behind on

competitiveness.

KEYWORDS

Higher Education, Quality, Employability, Excellent Managers, Placement etc.

INTRODUCTION

Management is a relatively new concept. It is one of efficient utilization of resources to obtain maximum benefits. The term in

English lexicon evolved sometime in the 16-17th centuries taking cue from Latin, ‘Manus’, Italian ‘Maregiare’ and French

‘Mesnagement / Menagement’. All the terms those preceded ‘management’ implied control over others1. If management

performed well with personal modesty and sense of service to the community, can be one of the noblest professions. It creates

growth, wealth and development in society, provides jobs, fosters innovation and improve living conditions (Onzonol, 2010)2.

Management education in India is imparted through three tier management institutions. The first tier refers to IIMs created in the

sixties with US collaboration like Harvard and are the main flagship institutions providing quality products for the local and

global enterprises. The two tier institutions are located in cities like Bengaluru, Mumbai and other mega cities and do not carry the

image of IIMB, but this institution have their own brand value and linked with AIMA. The third tier institutions refer to

management institutions established in small towns. The overall intention is to provide qualitative education competitively at

affordable cost. Government of India has liberated business education resulting in a rapid growth of B-schools offering post-

graduated undergraduate degrees. Innumerable institutions were established without proper infrastructure and with low quality

teaching. In Bengaluru alone, there are 300+ MBA institutions. Private institutions offering MBA degrees spend lot of money on

false advertisement and some colleges have affiliation with state universities like VTU in Karnataka and other State University

where seats are divided between entrance exam pass students and the rest will have to pay hefty donates and of late it is observed

that some private management institutions surrendering management quota to government back to fill under merit scheme.

ANALYSIS OF PRESENT SCENARIO

The MBA segment once the classic MBA education and crowded field in Bengaluru and at present dry in many colleges and full

in IIM at Bengaluru. Therefore, management education sector and B-schools in particular will have to make tentative choices. The

choice of providing quality education in the new circumstances of well-connected value conscious highly competitive business

and social environment. In order to understand the present situation a SCOT analysis (Strength - Constraints - Opportunity -

Threats) is done with some modifications.

Strengths

High stakeholder awareness,

Existence of reputed B-schools,

Large manpower pool,

Better employment opportunities,

Existence of global companies.

Opportunity

Large student base,

Opportunity for international alliance,

Positive international responds,

Growing urban Bengaluru,

IT integration,

Huge Manpower existing.

12Assistant Professor, Rajajinagar College of Education, Karnataka, India, [email protected]







Constraints

Narrow curriculum offering,

Inadequate infrastructure,

Absence of technology integration in Higher

education,

Lack of consulting approach,

Low remuneration paid to faculty,

Complete absence of research,

Passive teaching,

Low quality teaching B-schools.

Threats

Distance Mode Program becoming popular just like

any ordinary degree,

Trained manpower shortage,

Unexpected political intervention,

Competition among B-Schools.

Sources: Venktaraman et al.3 and Authors Compilation

Classification of Management Education Institution

Garg and Gupta (1999)4 have classified management education institutions in India based on their origin, modus operandi,

funding and conduct etc., in the following seven categories:

The premier most institutions like IIMS.

Management faculty of various universities.

Private institutions started by individual / trusts / societies (affiliated to universities).

Private institutions started by individuals / trusts / society (Not affiliated to universities. They are autonomous bodies).

Private Management Education institutions with Foreign University affiliation awarding foreign degrees.

Management Education Institutions started and supported by corporate houses like ISB at Hyderabad (not in

Bengaluru).

Management institutions providing education in specific areas like ITSS, IRMA, IFFM and XLRI etc.

ISSUES AND CHALLENGES

Quality

There is absolute decrease in the quantity and what is worrying at present is decreasing quality of higher management education.

In a recent paper “B-schools and engineering colleges shut down - big business strengths” ASSOCHAM found out that most of

the B-schools in the country fail to produce management graduates that match India’s expectations.5 Only a meager 10% of the

products are actually employable despite the demand. The employers at Bengaluru are now worried about these graduates do

better possess ability to manage chaos and ambiguity and collaborate skills. The global economies are becoming high competitive

and employers are looking for individuals who have both enough knowledge and required competency to manage complex

situations. Global business players expects more sufficiently knowledge since students do work better in groups and teams on

campuses but it becomes insufficient once then join the corporate world. It is shocking to observe. The quality of many graduates

is so poor and most of the employers claim that a sizeable portion of them are unemployable and have to be trained extensively

subsequent their recruitment.

Quality of Teaching

Teaching profession does not attract the best of the talent as it is regarded as a thankless job, poorly paid and unappreciated

neither by students nor by the society.6 unless this trend is changed, quality will be difficult to achieve. Further, it is said that

those who do not get job in other industries, where salaries are higher get into job and third tier institutions are happy to give them

a job. In these institutions, we never find a list of faculty teaching marketing, HR and Finance. The trend in Bengaluru is that

many 3-tier institutions appoint the teacher as a guest faculty and asked to complete the syllabus within 30-40 hours in a semester.

The number of quality research publications and citation index is poor. There is an urgent need of spending money on quality

education, good salary to the committed teaching force, spend on infrastructure.

Curriculum and Learning Models

The biggest drawback in the management higher education is the disjoint between what the society needs in terms of skills that the

students should possess what they are being taught. The top tier institutions like IIMS design the curriculum of the management

science and other universities, which have established management department, have roots in social science, engineering and

physical science, and mostly borrowed from the US and other European Universities like Harvard and London. Now there is an

urgent need to look into curriculum and teaching personalities. There is a need of introducing reforms in the courses that meets the

need of the society and only after testing and evaluation by higher bodies should be introduced. Preference should be given to soft

skills, analytical abilities in order to produce world-class graduates than only producing graduates to serve our growing service





industries. The overloaded curriculum with heavy dosage of theory is becoming a challenge of management education. In many of

the management institutes temporary guest faculty, which is seriously questionable, are doing services permanently without any

possession of industry experiences. In the absence practical exposure, most participation are unable to fine tune and apply

theoretical ideas into real life situations. Further the syllabus in most universities / institutions is not revised frequently in order

understand the latest trends in the industry. B-schools in Bengaluru are sufficiently ill equipped to get in touch with the real world

and the pace of change, which is challenging the management.7

Developing Intervention with the Industry

Interaction between institutions will have a bearing on the curriculum, exposure of industrial atmosphere to management students

and subsequent placements. Except in the case of the top ranked B schools, there are no mechanisms to forge close relationship

between B-schools and industry groups. The main strength of top class B-schools like Kellogg, Wharton, Sloan, and Harvard in

their strong relationship with industry through teaching, research, student placement, problem solving and costly study

preparation. There are occasionally executed by 3 tier institutions. There is no mechanism to implement the above in order to

prepare students well and degree is awarded just like any other degree. Students who study in these institutions neither possess

skill of communication, problem-solving nature, self-thinking, adjusting to the trend of global needs and that is why employability

rate is very low. Exposure to practical situation should also be considered and the challenge of management education is to bring

students close to real situation.

Integration of Technology into Management Education

Many of B-schools at Bengaluru do not use technology services in the education or imparting knowledge to the students. Faculty

while teaching extensively uses black board and overhead projectors. Smart board using not seen except is a few negligible

management institutions. Use of technology in the art of communications is the need of the hour. In order to improvise the quality

teaching and to arrest rapid drop in the quality it becomes absolute necessity to integrate technology in the management education.

Since in many colleges the ‘core’ faculty members are mostly new, with severe variations in the quality teaching needs to be

addressed properly in order to reduce percentage of coefficient of variation. The teachers, who are poorly equipped, paid less liked

by management come in the way of appointing talented payable into this profession.

Internationalization of Management Fundamentals

B-schools should become practitioners of principles governing substantially growth. The medical education at the national and

international level is so confident of the efficacy of its curriculum that manages large hospitals and treats patients. Only a

negligible number of B-schools across the globe and none in India manage any real business. B-schools must be good and best

and most trusted beneficiary consulting firms. B-schools at Bengaluru should try on this issue at least in the coming days in order

to compete globally.

Poor Infrastructure, Unjustifiable Mode of Conducting Examinations and Political Conflicts

Barring a few trusted B-schools, which are actually called as centres of excellence, almost all other colleges and affiliated colleges

to the universities are becoming a place of poor infrastructure, political conflicts, copying in the examinations, an ambience of

apathy and disenchantment over academic objectives. Despite university flying squad and sitting squad the poor conduct of

examination is causing un-justification from the point of view of students who have prepared well for the examination.

Examinations should be conducted under a set of clear norms. Since the existing law comes in the way of booking mass copy in

the examination center the squad members should give surprise visits and cease the answer book and study material and should

book case of malpractice so that examinations are conducted in an ideal manner.

Equity and Access

However, quantitatively there may be some progress but these numbers do not speak about regional equity and rural and urban

closeness. Generally, students from progressive states and from urban background have better chances of getting a good education

and better job opportunity. This leads to disappoint and disguisement among the youths of rural based students. Rural youths

demand not a chance to be given to progress but an opportunity. There has been attempt to redress the past wrongs by reserving a

certain percentage of seats is higher educational institutions to communities of scheduled caste, tribe and backward. This redresses

process might have redressed the problem; it has not fully solved the problem of providing equity and access. Therefore, a need

arises here to come up with novel concepts and solutions that will provide access to quality education to identified target groups.

Administrative Reforms

In order to redress the entire management education scenario some administration reforms has to be introduced. These

administrative reforms may be governance, policy formation, finance and accountability.





Accountability

Previously government run institutions administered higher education where the question of accountability was not such a serious

issue. This does not refer to that all institutions of government fully above board but there exists at least some government

machinery, which monitors the progress of the institutions. However, in the case of private institutions this has become a big

issue. Further, there are some institutions, which are violating the norms to get benefit, and immediate action is required to form a

regularity authority with sufficient statutory powers to bring discipline and accountability in higher learning centers.

Policy Formulation

At present in Bengaluru, private management institutions follow neither uniformity nor transparency in policies about service

conditions of the teachers or in the administration procedures. This definitely impairs the morality of students and the staff

members. Many institutions in Bengaluru pays remuneration on a package programme compelling the teachers to finish syllabi in

restricted hours per semester.

Finance

The finance issue is becoming quite complex issue at present. One school of thought strongly expresses that higher education in

the exclusive preserve of the government. The government cannot do away with responsibility of handing over the entire higher

education so to the hands of private sector under the guise deficit funds. It is the fundamental duty of the government to provide,

higher education on equity basis at affordable cost.

CONCLUSION

Management education aims at development of individual in particular and economy in general. In the present globalized scenario

due to severe competition management institutions are facing lot of challenges. The integration of technology into management

education, advances in knowledge and synthesis of knowledge are triggering major changes in the objectives, contents and

methods of higher education. At present in Bengaluru through facing innumerable challenges, some good B-schools are perceived

to offer more job opportunities in the market, helpful by personality modification, helpful in confidence building. Bengaluru is

becoming a center of Management education in the country. Different stakeholders are keeping a lively hope that the management

institutes provide better education. Considering the expectation of stakeholders, students faculty and corporate, the quality

influencing drivers such as quality of incoming student, top management philosophy, quality in processes i.e., teaching and

learning, focus on faculty development, partnerships and brand image of B-schools etc., should be improvised in the interest of

students who would like study management education in Bengaluru.

REFERENCES

1. Shwetha, & Kumar, Manoj. (2011). Management Education in India: Issues and challenges. Journal of Management

and Public Policy, 3(1), 101-110.

2. Ohzonol, Santiago Iniquez. (2012). Management Education, The best is yet to come. In From challenges to charge.

Business schools into wake of financial crisis (A compendium of essays put together by global foundation for

management education). Retrieved from www.gfme.or/pdf/complete web.pdf

3. Venkatarama, Sharma, Neta, Raheja, Deepali, & Raheja, Kumendra. (2010). Management Education Step to sustainable

development of the Economy. Indira Management Review, IV (1), 49.

4. Garg, G. R., & Gupta, Rajiv. (1999). Customer satisfaction in Management Education institutions: Challenges in the

Next Millennium. Notlog Pragati, 23(3), 49-59.

5. Jayashree. (2014). Enhancing employability Skills - need for a paradigm shift in competiveness, pp. 88-89.

Revitalization of management education. MTC Global, Bengaluru.

6. Shanthi, K. (2008). Issues and challenges in Higher education. University News, 46(38), 20.

7. Agarwal, Hemalatha. (2010). Management education in India and its perceived quality. Indira Management Review, IV

(2), 46.

8. Retrieved from http://www.iodonline.com/Articles/Designteaching%202%20SIT.pdf

*****

http://www.gfme.or/pdf/complete%20web.pdf

http://www.iodonline.com/Articles/Designteaching%202%20SIT.pdf





AN EMPIRICAL STUDY EXAMINING GENDER DIFFERENCES

IN USING SOCIAL NETWORKING SITES

Dr. Kavita Saxena13

ABSTRACT

Purpose: The study seeks to investigate gender differences in Social Networking Sites (SNSs) visited regularly, frequency

and duration of visit of these sites per day, major activities done on SNSs, site categories commonly accessed and products

purchased based on recommendations from SNSs.

Design/Methodology/Approach: A well-structured questionnaire was developed and a total of 100 questionnaires were

administered using online survey. To check the reliability of the collected data on gender differences in using SNSs, reliability

analysis method was employed using Cronbach’s Alpha Model technique. One way ANOVA was used to test the significance

of results.

Findings: Major gender differences are seen in the usage of SNSs. Facebook is more used by females whereas males use more

of Twitter and LinkedIn. Females interact more with family, friends, colleagues and people staying far away whereas males

speak more with relatives and strangers. Gender difference is also found in the major activities done using SNSs. Males are

seen engaged into activities like sharing pictures and information, instant messaging and keeping in touch with friends/family

and relatives while females are more engaged in reading comments posted on SNSs. Males preferred visiting SNSs,

multimedia, education whereas females preferred using more of emails and sites related to food and healthcare. Males

preferred visiting SNSs, multimedia, education whereas females preferred using more of emails and sites related to food and

healthcare.

Originality/value: The study will be of value to those marketers who are using SNSs for selling and marketing their products.

It is suitable for academicians and practitioners alike.

KEYWORDS

Social Networking Sites, Gender Differences, Site Categories etc.

INTRODUCTION

Proliferation and widespread adoption of social media has brought dramatic changes in the business environment as well as

society. Among all the platforms enabled by the advancement of Web 2.0, social media is one of the most significant applications

that has grown exponentially in many population segments (Barnes, 2009; Bernoff, Pflaum, & Bowen 2008; Corbett 2009; Miller,

2009). It includes a variety of web-based tools and services that are designed to promote community development through

collaboration and information sharing (Arnold & Paulus, 2010; Junco, Helbergert, & Loken, 2011). Social Networking sites

(SNSs) like Facebook, Twitter, MySpace, Youtube and LinkedIn are becoming increasingly pervasive (Sin, et al., 2012). The

findings from the past research works make it evident that social network sites have become main-stream and it has been reported

that globally, these sites account for one in every 11 minutes spent online (Jones, 2009).The following table shows the progress of

web-based services with examples and supporting tools:

Table-1: Progress of Web-Based Services with the Year of Inception

Web-based Services Year of Inception Example Services / Tools

1. Static Web Sites (SWS) Early 1990s Netscape Navigator launched in 1995

(it was a first commercial web browser)

2. Interactive Web Sites (IWS) 1995/96 Java applets, Java scripts, VB scripts, …

3. Search Engines (SE) 1995 Lycos,

Yahoo, …, Google (1998)

1995 Lycos, Yahoo, …, Google (1998)

4. Discussion Groups (DG) 1995 Yahoo

groups, Google groups

1995 Yahoo groups, Google groups

5. E-Commerce Sites (EC) 1995

Amazon.com, e-Bay, …

1995 Amazon.com, e-Bay,…

6. Online Social Networks Early 2000s MySpace (2003), LinkedIn (2003), Facebook (2004),

Ning (2005), Flickr, YouTube, …

Sources: sce.uhcl.edu/yang/research/EM2I'07final.pdf

13Associate Faculty, EDI of India, Gujarat, India, [email protected]






STATEMENTS OF PROBLEM

Social media has become a buzzword these days. SNSs are seen as a global consumer phenomenon and there is an exponential

rise in their usage in the last few years. Past empirical research shows gender differences in the usage and preferences towards

using SNSs. Many research reports on social media have found that women are more engaged than men on the internet.

According to a report by 14Pew Research Center (September 2013), 78% of female adult (18+) Internet users access social

networking sites, versus 69% of male adult Internet users. Some studies claim that females are more hooked to Facebook whereas

men’s presence is dominant on LinkedIn. Therefore, there is a need for research to study these issues on gender differences and

preferences towards use of social networking sites. The objective of this research is to study the difference in gender preferences

and purposes for using these sites.

QUESTIONS OF RESEARCH

The following research questions are framed based on problem statements:

What are the commonly accessed social networking sites by men and women?

Is there any difference in the major activities done by men and women on SNSs?

Is there any difference in the product purchase decisions made by men and women based on the reviews received from

SNSs?

OBJECTIVES OF RESEARCH

The following research objectives are framed based on research questions:

To find out the commonly accessed SNSs by men and women?

To study the difference in the major activities done by men and women on SNSs

To study the difference in the products purchased by men and women based on the reviews received from SNSs?


Various authors have addressed varied issues related to SNSs. This section attempts to examine related works done in the said

area to identify the gaps for further research work:

Wikipedia defines social media as the social interaction among people in which they create, share or exchange

information and ideas in virtual communities and networks.

Kaplan and Haenlein (2010) define social media as “a group of Internet based applications that build on the ideological

and technological foundations of Web 2.0, and allow the creation and exchange of user generated content. Social media

uses the technological foundation of Web 2.0 to create and exchange user-generated content.

Sinclaire and Vogus (2011, 294) cite O’Reilly’s (2005) definition of social media as a set of software tools that create

user generated content that can be shared.

Kaplan and Haenlein (2010) concluded in their research work that social media could take forms of social networks,

blogs, internet forums, wikis, podcasts, pictures, video, rating and social bookmarking.

Weber (2009) stated in his work that in this era of technology, branding and marketing is about participating in social

networks and communicating with customers through these mediums.

Aaker (1996) in his research findings claimed that brand awareness is about the strength of brand’s presence in

consumer’s mind and he debated on the usage of social media for creating the same.

Weber (2009) claimed that brand awareness should be measured by customer’s word-of-mouth rather than brand recall.

Weber (2009) emphasized that marketing through social media is easier and effective for small or medium-sized

companies and they should certainly take advantage of this.

14Pew Research Centre: The Pew Research Center is a nonpartisan American think tank based in Washington, D.C., that provides

information on social issues, public opinion, and demographic trends shaping the United States and the world.





Harris and Rae (2010) looked at the role of social networking in creating an integrated marketing strategy. He even

emphasized on the role of chat rooms and news groups in creating an online customer community to empower them to

solve their own problems effectively.

Harris and Rae (2010) concluded in their research work that though companies are using social media in a big way, (like

creating a Facebook page); it is too early to comment on the success of this strategy in generating business.

Di Pietro and Pantano (2012) advised retailers to improve their Facebook page and add contests and other interactive

applications to attract more users.

Weber (2009) talked about the use of social media at different stages of product life cycle.

Chu (2011) found that consumers accessing Facebook have a more favorable attitude toward social media and

advertising.

Cox (2010) remarked that though consumers show positive attitude towards online advertisements, but if the ads are

intrusive like pop ups, they are disliked by the internet users.

Heinonen (2011) highlighted the importance of knowing the consumer’s motives. He said that they provide a deeper

understanding of factors that influence users to create content about a brand or store on social media.

Gonzalez (2010) concluded that while social media provides never ending avenues for communicating, it is the

individuals who serve as the influencers not the technology.

Hargittai (2007) remarked that different segments of the population choose specific social networking sites for distinct

purposes.

Acquisti & Gross ( 2006) and Ellison, Steinfield, & Lampe (2007) showed in their work that young people are

motivated to join these sites to keep strong ties with friends and to strengthen ties with new acquaintances, but not so

much to meet new people online.

Berger & Calabrese (1975) concluded that social network sites allow users to get information about their contacts, their

interests, likes and dislikes, interests, music tastes, and whereabouts. This information can reduce uncertainty about

other users’ intentions and behaviour, which is a necessary condition for developing norms of trust and reciprocity.

Newton (1999) remarked that the more people know in detail about their contacts, the more they trust or distrust them.

According to eBizMBA (2010), Facebook, Myspace, Youtube, Flickr, and LinkedIn are the most commonly known

social network sites containing similar as well as different features.

Lenhart & Madden (2007), Pempek, Yermolayeva & Calvert (2009) and Zywica & Danowski (2008) studied the

relationship between the youth and their involvement in social network sites that focused on their social network

activities in relation to their privacy concerns.

Stutzman (2006) stated that social networks could be used for passing time, learning about other people, maintaining

social relations, following changes at the university, class or school enrolled.

Joinson (2008) found that people use social networks to keep in touch with old friends, find the lost contacts,

communicate with the like-minded people, join groups with shared interests, organize or join events, view and tag

photos, share/ post photographs, play games, update one's own status, see others' status.

Research has found that men typically behave and are expected to be more agentic, while women typically behave and

are expected to be more communal (Eagly, 1987).

Men tend to be more assertive, controlling, independent, rational, individual, and autonomous while also being more

closed, less expressive, and unemotional (Eagly, 1987; Petronio & Martin, 1986; Bond, 2009; Lemish, 2008; Walker,

2008).

Women tend to be more concerned for the welfare of others, interpersonally sensitive, emotionally expressive, open,

empathetic, revealing, dependent, and vulnerable (Eagly, 1987; Petronio & Martin, 1986; Lemish, 2008).





Women’s communication indicates a desire for solidarity, meaning that women tend to use language to build

connections, relationships, and intimacy. In contrast, men’s communication indicates a concern for power, meaning that

they tend to use language for more direct and instrumental purposes such as disseminating information, rather than

building interpersonal connections (Walker, 2008). This information was supported by the findings of Bond (2009),

who found that women disclose more relationship-oriented information than men in face-to-face interpersonal

interactions.

HYPOTHESES DEVELOPMENT

Based on the literature review and research objectives, following hypotheses are proposed for testing in the study:

H1: There is no significant gender difference in the social networking sites being accessed on regular basis.

H2: There is no significant gender difference in the major activities done on SNSs.

H3: There is no significant gender difference in the products purchased through SNSs.


A structured questionnaire was developed to test the proposed hypotheses in this research. The questionnaire included 12

questions each carrying various options on which the responses were recorded. In the last, the questionnaire also had questions

assessing demographic information of the respondents like age, gender, qualification, profession and annual income. The scales

used in this study were adopted from previous research and modified as per the requirements. The researcher developed some of

the statements.

Sample

To test the above stated hypotheses, questionnaire was administered on 100 people through internet. The Google document form

was created and uploaded on Facebook and LinkedIn to collect the responses. The demographic characteristics of the sample were

shown in Table 1.

Table-1: Demographic Characteristics of the Sample

Variables Gender Variables Gender

Male Female Male Female

Gender Male 65 35

Annual

income

< 250000 lacs

250001-500000 lacs

500001-750000 lacs

750001- 1000000 lacs

>1000000 lacs

16

25

7

7

10

16

8

7

0

4

Qualification Undergraduate

Post graduate

Diploma

Doctorate

Professional

qualification

3

49

1

3

9

0

23

0

3

9

Profession Service

Business

Professional

House wife

Student

45

4

12

0

4

12

2

5

12

4

Age <20 years

20-30 years

31-40 years

41-50 years

> 50 years

1

50

10

2

2

0

25

8

2

0


DATA ANALYSIS

To check the reliability of the data collected, Cronbach's Alpha was calculated. It is a measure of how well each individual item in

a scale correlates with the sum of the remaining items. It measures consistency among individual items in a scale (Streiner and

Normal, 2004). When items are used to form a scale, they need to have internal consistency. The items should all measure the

same thing, so they should be correlated with one another. Thus, a useful coefficient for assessing internal consistency is

Cronbach's alpha. Its value >or = 0.70 is considered to be satisfactory. In the present study, the value of Cronbach’s alpha was

found to be 0.879 indicating that all the variables are reliable and can be used for subsequent analysis. The collected data was

analyzed initially using descriptive statistics such as mean, standard deviation and percentages to find out the important variables

affecting indulgences of men v/s women on social networking sites.

Use of Social Networking Sites

Table-2 shows that out of 65 males, 61 males use are using SNSs on regular basis while all the 35 females use these sites very

regularly.





Table-2

Gender

Total Male Female

Use of SNS Yes 61 35 96

No 4 0 4

Total 65 35 100


Device used to access SNSs

Table-3 shows gender wise difference in the devices used to access SNSs. Majority of males and females are using mobile phones

to access SNSs.

Table-3


Number of Times SNSs is accessed in a day

Table 4 shows that majority of males use SNSs 6-10 times in a day while majority of females use it 2-5 times in a day.

Table-4

Gender

Total Male Male

How Many Times

In A Day

Once in a Day 16 8 24

2-5 Times in a Day 19 16 35

6-10 Times in a Day 22 7 29

Continuously Logged In 8 4 12

Total 65 35 100


Amount of Time spent on SNS per Day

Table-5 shows that majority of males and females spend less than one hour per day on SNSs.

Table-5

Gender

Total Male Female

How much time spent < 1 hr. 32 19 51

Between 1-3 hrs. 30 16 46

Between 3-5 hrs. 3 0 3

Total 65 35 100


Gender

Total Male Female

Device

Used

Pc or Laptop At Home 18 12 30

Pc or Laptop At Office 5 4 9

Mobile Phone 36 17 53

Tablet 6 2 8

Total 65 35 100





Concern about Privacy of Personal Information on SNS

Table 6 shows that both men and women are highly concerned about privacy of information uploaded on SNSs.

Table-6

Gender Total

Male Female

Privacy

of

Information

Rarely Concerned 2 2 4

Neither Concerned Nor

Unconcerned

11 2 13

Somewhat Concerned 19 6 25

Highly Concerned 33 25 58

Total 65 35 100


Testing of hypotheses

H1: There is no significant gender difference in the social networking sites being accessed on regular basis.

Since the variable ‘gender’ consists of only two groups, the t-test is carried out for this variable. T-test shows that there is a

statistically significant difference between ‘gender’ and SNSs used. As shown in Table 7 below, the p-value (Sig. 2-tailed)

calculated is 0.033 which is less than the significance value of 0.05. Therefore, H1 is rejected indicating there is no statistically

significant gender difference in the SNSs being accessed on regularly basis except Facebook, which is more frequently accessed

by females as compared to males. (Refer annexure 1 (a) for mean values).

Table-7: Independent Samples Test for Gender Difference in SNSS being Accessed

Levene's Test

For Equality

of Variances t-test for Equality of Means

F Sig. t d.f.

Sig.

(2-tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of

the Difference

Lower Upper

Facebook EVA 20.259 .000 -2.159 98 .033 -.23736 .10996 -.45558 -.01915

EVNA -2.633 96.298 .010 -.23736 .09014 -.41629 -.05844

Twitter EVA .546 .462 .257 98 .798 .06813 .26554 -.45882 .59509

EVNA .252 66.321 .802 .06813 .27025 -.47138 .60764

LinkedIn EVA .700 .405 1.020 98 .310 .29011 .28440 -.27427 .85449

EVNA 1.005 66.874 .318 .29011 .28859 -.28595 .86617

Myspace EVA .464 .497 -.239 98 .812 -.01978 .08284 -.18418 .14462

EVNA -.213 50.879 .832 -.01978 .09300 -.20650 .16694

Blogs EVA .000 .997 -.147 98 .884 -.03077 .21002 -.44754 .38601

EVNA -.150 75.068 .881 -.03077 .20464 -.43843 .37689

Flickr EVA 7.011 .009 -1.187 98 .238 -.18242 .15365 -.48733 .12249

EVNA -1.057 50.789 .296 -.18242 .17261 -.52898 .16414

Google plus EVA 6.266 .014 -1.797 98 .075 -.40879 .22747 -.86019 .04261

EVNA -1.678 57.492 .099 -.40879 .24367 -.89664 .07905


Note: EVA – Equal Variance Assumed, EVNA– Equal Variance Not Assumed

H2: There is no significant gender difference in the major activities done on SNSs.

Table 8 below, the p-value (Sig. 2-tailed) calculated is less than 0.05 for variables namely sharing pictures and information,

instant messaging and keeping in touch with friends/family and relatives. Therefore, H2 is rejected for these variables indicating





there is a statistically significant gender difference in the activities like namely sharing pictures and information, instant

messaging and keeping in touch with friends/family and relatives being done using SNSs. (Refer annexure 1 (b) for mean values).

Table-8: Independent Samples Test for gender difference in major activities done using SNSs

Levene's Test

for Equality


F Sig. t d.f.

Sig.

(2-tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of

the Difference

Lower Upper

Post status EVA .422 .518 1.584 98 .116 .37143 .23447 -.09387 .83673

EVNA 1.598 71.455 .115 .37143 .23248 -.09206 .83492

Download videos EVA .722 .398 .910 98 .365 .21538 .23677 -.25448 .68524

EVNA .959 80.818 .340 .21538 .22459 -.23150 .66227

Upload pictures EVA .572 .451 .862 98 .391 .19121 .22188 -.24910 .63152

EVNA .820 60.500 .416 .19121 .23330 -.27538 .65779

Read comments EVA 1.286 .259 -.527 98 .600 -.12308 .23375 -.58694 .34079

EVNA -.512 64.297 .611 -.12308 .24050 -.60349 .35733

Share pictures EVA .871 .353 3.393 98 .001 .70549 .20792 .29288 1.11811

EVNA 3.166 57.395 .002 .70549 .22287 .25927 1.15172

Play games EVA .884 .349 .906 98 .367 .26593 .29354 -.31658 .84845

EVNA .908 70.264 .367 .26593 .29276 -.31791 .84978

Instant messaging EVA 1.083 .300 3.483 98 .001 .75824 .21771 .32621 1.19027

EVNA 3.397 64.963 .001 .75824 .22318 .31251 1.20398

Sharing information EVA 1.785 .185 2.107 98 .038 .50110 .23785 .02910 .97310

EVNA 2.049 64.427 .045 .50110 .24455 .01263 .98957

Talking to people

with common interest

EVA 15.982 .000 .225 98 .822 .05495 .24395 -.42917 .53906

EVNA .198 49.270 .844 .05495 .27745 -.50253 .61242

Keep in touch with

family and friends

EVA 4.743 .032 2.607 98 .011 .48352 .18546 .11548 .85155

EVNA 2.389 54.717 .020 .48352 .20238 .07789 .88914



H3: There is no significant gender difference in the products purchased on SNSs.

As per table 9 below, the p-value (Sig. 2-tailed) calculated is less than 0.05 for variables namely buying movie tickets and home

and living products. Therefore, H3 is rejected for these variables indicating there is a statistically significant gender difference in

the products purchased on SNSs. (Refer annexure 1(c) for mean values).

Table-9: Independent Samples Test for Gender Difference in the Products Purchased on SNSs

Levene's Test

for Equality


F Sig. t d.f.

Sig.

(2-tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of

the Difference

Lower Upper

Apparel EVA .256 .614 -1.482 97 .142 -.38125 .25733 -.89199 .12949

EVNA -1.459 67.021 .149 -.38125 .26128 -.90277 .14027

Books and

Music

EVA 1.109 .295 -.898 97 .371 -.22813 .25392 -.73209 .27584

EVNA -.939 79.399 .351 -.22813 .24295 -.71167 .25542





Electronics EVA 1.054 .307 .197 97 .844 .05045 .25595 -.45755 .55844

EVNA .203 76.121 .840 .05045 .24864 -.44476 .54565

Movie Tickets EVA .293 .589 -2.261 97 .026 -.62366 .27583 -1.17110 -.07622

EVNA -2.259 69.880 .027 -.62366 .27606 -1.17426 -.07307

Flowers/

Cards/cakes

EVA 1.166 .283 -1.468 97 .145 -.38973 .26553 -.91674 .13727

EVNA -1.412 62.583 .163 -.38973 .27608 -.94151 .16204

Home and

Living

EVA .343 .560 -2.080 97 .040 -.36473 .17537 -.71278 -.01668

EVNA -2.000 62.550 .050 -.36473 .18237 -.72921 -.00025

Toys EVA .100 .752 -1.474 97 .144 -.30491 .20693 -.71561 .10578

EVNA -1.436 65.031 .156 -.30491 .21230 -.72890 .11908

Video

Games

EVA 3.470 .066 -1.065 97 .290 -.15268 .14336 -.43722 .13186

EVNA -.956 51.780 .344 -.15268 .15970 -.47318 .16782

Pet

Supplies

EVA .547 .461 -.612 97 .542 -.06964 .11383 -.29556 .15627

EVNA -.631 76.382 .530 -.06964 .11044 -.28959 .15030

Luxury

Goods

EVA .096 .757 -.864 97 .390 -.20580 .23813 -.67843 .26682

EVNA -.876 72.952 .384 -.20580 .23481 -.67378 .26218



FINDINGS AND DISCUSSIONS

From the present study, it is clear that there exist some gender differences in accessing social networking sites. The

inferences drawn from the study reveal that males access SNSs more frequently in a day (6-10 times per day) whereas

females access it (2-5 times) per day.

There is no gender difference as far as privacy of information shared on SNSs is concerned.

Females more frequently use Facebook whereas LinkedIn and Twitter are more frequently used by males.

Males speak more often with relatives and strangers whereas females prefer speaking more with family, friends,

colleagues and people staying far away.

There is a significant gender difference seen in the major activities done using SNSs. Males are seen engaged into

activities like sharing pictures and information, instant messaging and keeping in touch with friends/family and relatives

while females are more engaged in reading comments posted on SNSs.

Gender difference is also seen in the categories of sites visited online. Males preferred visiting SNSs, multimedia,

education whereas females preferred using more of emails and sites related to food and healthcare.

As per the findings, males purchase electronic items and females purchase movie tickets and home and living products

based on the recommendations received on SNSs.

There is no major gender difference as far as information included on SNSs is concerned (Refer annexure 1(d) which

shows there is no difference in the mean values of males and females).

Most of the females use SNSs for getting advice and recommendations for making purchase decisions whereas males

use it more for getting information about new products and services (Annexure 1 (e).

Males interact more with strangers as compared to females who prefer keeping in touch with family, friends and

relatives (Annexure 1 (f).

As far as major site categories accessed are concerned, males refer more to sites related to education and multimedia

whereas females are more interested in food, health care, family and planning (Annexure 1(g).

From these findings, it can be concluded that the inferences of the present study are in line with the past studies done by some of

the authors like Acquisti & Gross ( 2006) and Ellison, Steinfield, & Lampe (2007), Newton (1999), Stutzman (2006) and Joinson

(2008) to name a few.

CONCLUSIONS AND IMPLICATIONS

Social networking sites have become an integral part of people’s lives. They have become an important tool for interaction and are

playing an important role in connecting people with each other. Given the benefits offered by SNSs, people are using it more

frequently not only for connecting with each other, but also for making important purchase decisions based on advice and

recommendations received from their contacts on SNSs.





There exist some gender differences in terms of usage, preferences towards certain SNSs and major activities done by men and

women on SNSs. Therefore, marketers are advised to learn those differences and use the respective sites depending upon the

profile of their target audience.

Marketers can also understand the preferences of men and women through this study and can improve its marketing efforts based

on the vital information on gender differences in using social networking sites. As more shoppers are relying on recommendations

from SNSs for making purchase decisions, companies should consider promoting themselves through these media.

As customers are using online platform to voice their opinions on products and services purchased, companies should make

efforts to engage those customers by creating virtual brand communities. Furthermore, with the growing popularity of SNSs

among the masses, companies can no longer afford to miss this medium and in fact, social media must be made an integral part of

a company’s integrated marketing strategy.

LIMITATIONS AND FUTURE RESEARCH

The study has its own share of limitations. Like most marketing research, this study took a “snapshot” of a data collected from 100

respondents only. Due to budget and time constraints, whole population could not be considered. As the research was based on

convenience sampling, it is not free from the limitations of the same. However, despite limitations identified, the results of this

study offer useful insights to the marketers on gender differences in using SNSs. More robust research techniques such as factor

analysis can be used to identify the important factors where gender differences are substantial. Further research can also be done

to study these differences product-wise.

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APPENDIX

Annexure-1(a): Commonly used SNSs: Group Statistics

Gender N Mean Std. Deviation Std. Error Mean

Facebook Male 65 4.6769 .61511 .07630

Female 35 4.9143 .28403 .04801

Twitter Male 65 2.1538 1.24035 .15385

Female 35 2.0857 1.31443 .22218

LinkedIn Male 65 2.8615 1.33319 .16536

Female 35 2.5714 1.39928 .23652

Myspace Male 65 1.1231 .33108 .04107

Female 35 1.1429 .49366 .08344

Blogs Male 65 1.5692 1.03031 .12779

Female 35 1.6000 .94558 .15983

Flickr Male 65 1.2462 .61316 .07605

Female 35 1.4286 .91670 .15495

Google plus Male 65 2.0769 .98912 .12269

Female 35 2.4857 1.24550 .21053


Annexure 1 (b) Majority Activities done on SNSs: Group Statistics


Post status Male 65 3.4000 1.12916 .14005

Female 35 3.0286 1.09774 .18555

Download videos Male 65 2.2154 1.19232 .14789

Female 35 2.0000 1.00000 .16903

Upload Pics Male 65 3.2769 .99228 .12308

Female 35 3.0857 1.17251 .19819

Read comments Male 65 3.6769 1.07685 .13357

Female 35 3.8000 1.18322 .20000

Share pics Male 65 3.4769 .90325 .11203

Female 35 2.7714 1.13981 .19266

Play games Male 65 2.3231 1.40432 .17418

Female 35 2.0571 1.39205 .23530

Instant messaging Male 65 3.0154 1.00766 .12499

Female 35 2.2571 1.09391 .18490

Share information Male 65 3.2154 1.09676 .13604

Female 35 2.7143 1.20224 .20322

Meeting people with

common interest Male 65 2.7692 .94818 .11761

Female 35 2.7143 1.48664 .25129

Keep in touch with family

and friends

Male 65 4.1692 .78201 .09700

Female 35 3.6857 1.05081 .17762


http://www.tojet.net/articles/v10i2/10214.pdf

http://www.researchgate.net/publication/214503851_Gender_Differences_in_Job_Satisfaction_among_Secon

http://www.researchgate.net/publication/222395437_College_students'_social_networking_experiences_on





Annexure-1(c): Things Purchased Online based on Reviews from SNSs: Group Statistics


Apparel Male 65 2.2308 1.19595 .14834

Female 35 2.6000 1.26491 .21381

Books and music Male 65 2.1692 1.25710 .15592

Female 35 2.4000 1.09006 .18425

Electronics Male 65 2.4308 1.24962 .15500

Female 35 2.3714 1.13981 .19266

Movie Tickets Male 65 2.8923 1.30052 .16131

Female 35 3.5143 1.31443 .22218

Flowers/cards/cakes Male 65 1.9385 1.19735 .14851

Female 35 2.3429 1.37076 .23170

Home and living Male 65 1.6000 .80623 .10000

Female 35 1.9429 .90563 .15308

Toys Male 65 1.6000 .94868 .11767

Female 35 1.9143 1.03955 .17572

Videogames Male 65 1.2154 .57261 .07102

Female 35 1.3714 .84316 .14252

Pet supplies Male 65 1.1846 .55600 .06896

Female 35 1.2571 .50543 .08543

Luxury goods Male 65 1.7692 1.14249 .14171

Female 35 1.9714 1.09774 .18555


Annexure-1(d): Information included on SNSs: Group Statistics


Sexual Orientation Male 65 10.0000 .00000a .00000

Female 35 10.0000 .00000a .00000

Email Id Male 65 1.0000 .00000 .00000

Female 35 1.0571 .23550 .03981

City Male 65 2.4000 .98107 .12169

Female 35 2.2857 .82503 .13946

Messenger Address Male 65 4.6462 1.32795 .16471

Female 35 4.8286 1.70614 .28839

Mobile Number Male 65 6.0154 1.64405 .20392

Female 35 6.0571 1.64393 .27788

Own Pictures Male 65 7.7846 1.30495 .16186

Female 35 7.9143 .98134 .16588

Others Pictures Male 65 8.2769 1.44165 .17882

Female 35 8.2286 1.23873 .20938

Political Views Male 65 8.8462 1.27758 .15846

Female 35 9.0000 1.16316 .19661

Real Name Male 65 9.2000 .79451 .09855

Female 35 9.4286 .77784 .13148

Relationship Status Male 65 9.4462 .50096 .06214

Female 35 9.5143 .50709 .08571






Annexure-1(e): SNSs are best Suited for Which Purposes: Group Statistics


Making purchase decision Male 65 4.4769 2.72206 .33763

Female 35 4.4286 2.89305 .48901

Product information Male 65 4.2154 2.58295 .32038

Female 35 4.2000 2.76320 .46707

Advice and recommendations Male 65 2.4154 2.07585 .25748

Female 35 3.4857 2.63875 .44603

Info about new products Male 65 4.5385 2.66386 .33041

Female 35 3.9714 2.95541 .49956

Fun Male 65 1.6769 1.87173 .23216

Female 35 1.5143 1.70417 .28806

Contribute to community Male 65 2.6308 2.32896 .28887

Female 35 2.8286 2.38236 .40269

Stay up-to date Male 65 1.5538 1.63010 .20219

Female 35 1.3429 1.41302 .23884

Entertainment Male 65 1.9538 2.10231 .26076

Female 35 1.0571 .23550 .03981


Annexure-1(f): Speak to whom using SNSs: Group Statistics


Family Male 65 2.9385 1.35643 .16824

Female 35 3.1429 1.11521 .18851

Relatives Male 65 3.0615 1.05885 .13133

Female 35 2.9714 .89066 .15055

Friends Male 65 3.6615 .87101 .10804

Female 35 3.9714 .85700 .14486

Colleagues Male 65 2.9846 1.31687 .16334

Female 35 3.0857 1.09468 .18503

People far away Male 65 3.2615 1.27814 .15853

Female 35 3.3429 1.10992 .18761

Strangers Male 65 1.6923 .99880 .12389

Female 35 1.2857 .75035 .12683


Annexure-1(g): Site Categories Frequently accessed Online: Group Statistics


SNSs Male 65 1.1231 .45096 .05593

Female 35 1.0000 .00000 .00000

Email Male 65 3.0308 1.10353 .13688

Female 35 3.8571 2.39046 .40406

Multimedia Male 65 6.3231 2.50691 .31094

Female 35 6.1714 2.78109 .47009

Education Male 65 9.0154 2.01938 .25047

Female 35 8.9143 2.20122 .37207

General news Male 65 10.3846 2.46660 .30594





Female 34 10.3235 2.25255 .38631

Lifestyle Male 65 10.5846 2.61541 .32440

Female 35 10.1143 2.54109 .42952

Banking Male 23 12.0870 1.92857 .40213

Female 15 12.2667 2.12020 .54743

Apparel Male 7 11.2857 1.70434 .64418

Female 5 11.6000 .54772 .24495

Food Male 6 12.3333 1.86190 .76012

Female 4 13.0000 .00000 .00000

Healthcare Male 4 12.5000 1.73205 .86603

Female 4 14.0000 .00000 .00000

Family and

parenting

Male 65 15.0000 .00000a .00000

Female 35 15.0000 .00000a .00000


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FACTORS THAT INFLUENCES A CUSTOMER

TO PASS ON ADVERTISEMENT MESSAGES

Dr. Rohit Singh Tomar15

ABSTRACT

Advertisements leaves long lasting impression on its viewers, further it prompts viewers to transfer ad messages to the other

potential buyers. In fact, there are certain factors available in the advertisements, which influence customers to pass on ad

messages. Through review of literature we could able to identify 29 variables which influences a customer to pass on

advertisement messages.

At the second stage, a questionnaire is formed based on identified variables. Data collected from 150 respondents is compiled

and tabulated to apply factor analysis using SPSS 18.0. Ten factors are identified and baptized based on results obtained

through factor analysis. Top three factors, which explain 35.517 per cent of variance in the model, are - Promoted Benefits,

Aspiring Reference Group, Realistic and Entertaining Group.

The first factor Promoted Benefits explains almost 20 percent of the total variance explained the model. It is composed of ads,

which communicate product benefits, and ads, which show offers and discounts. Therefore, this factor is ranked first as far as

transfer of ad messages to others by the customer is concern. Finally, paper explains the use of top three factors in formulating

ad strategies.

This is an exploratory research based on selected variables. Further research is invited to explore more variable by using larger

sample space and sample size. In addition, not all ten factors are interpreted completely leaving a scope of their interpretation

and authentication based on other researchers’ study.

KEYWORDS

Advertising Messages, Potential Buyers, Entertainment, Marketing etc.

INTRODUCTION

If marketing is a technique to satisfy needs and wants of the customers through product and service offerings to the target

customers then advertising is a mass medium of carrying message to spread awareness and stimulate buying process among the

customers. Advertisements are perpetual in nature and they transfer their message even after their transmissions are over. Every

advertisement has its own add appeal, which helps organizations to connect in a better way with the targeted customers.

In reality the messages, features, ideas, appeals, background, medium, colour contrast, sound and music, role models etc. put an

impact on the customers. In other words, certain hidden and open ingredients of these advertisements act as factors, which put an

impact on the customers. It is the strength of these factors, which might influence a customer to pass on advertisement message to

other potential customers. Effective advertisement spread awareness, interest, desire, and action (AIDA). Action of a customer

could lead to purchase, intention to purchase, and recommending/suggesting others to purchase a product or a service.

Therefore, objective of our researcher is to identify and explore some attributes, which influence customers to pass on advertising

messages. Later we would compile all these attribute and compress the same into useful factors which influences a customer to

pass on the add messages.


Advertising, sales promotion and public relation are promotion mix tools important for the development of the market for the

consumers. Same message is carried out for all the target audience through advertisement. Now it depends upon the

understanding, comprehension, and state of mind of the customer to interpret the advertisement. We may define advertisement as

communication process, marketing process, an economic and social process, a public relation process or information and

persuasion process (Arens, 1996), Dunn et al. (1978) viewed advertising from its functional perspectives, hence they define it as a

paid, non-personal communication through various media by business firms, non-profit organizations and individuals who are in

some way identified in the advertising message who hope to inform or persuade members of a particular audience.

15Assistant Professor, Amity Business School, Amity University, Madhya Pradesh, India, [email protected]






Modern (1991) is of the opinion that advertising is used to establish a basic awareness of the product or service in the mind of

potential customer and to build up knowledge about it. Therefore, every advertisement is following certain strategy/appeal to

influence its target customers. In addition, there could be many reasons behind the sharing of ads related information by the

customers. Customers are more likely to accept messages and solve buying problems through personal and social networks,

turning to word-of-mouth communication (Dichter, 1966). Our job is to enlist maximum number of attributes, which an advertiser

could put in his advertisement to influence a customer favorably towards the advertised product or service.

Aaker and Norris (1982) suggested informational/ rational/cognitive type of advertisement. Puto and Wells (1984) suggested that

informational advertising is realistic and factual, it associate relevance of advertisement with the product. The effect of various

execution cues often depend on consumers’ motivation and ability to process ad information (Rajesh K. Chandy et.al, 2001).

Entertainment content in ads prompts consumers to interact with product (Porter & Golan, 2006). It has an element of surprise,

which is liked by the customers. Many people are accepting the ads for its entertainment value; therefore, entertainment value and

originality of ads have become topics of talk (Dichter, 1966). Advertising endorser or aspiration group is one frequently used

method in advertising to influence consumers’ attitudes and purchase intensions (Lafferty & Goldsmith, 1999), which plays an

important role of message passing in advertisements to catch consumers’ attention (McGuire, 1969).

According to Phelps, Lewis, Mobilio, Perry, and Raman (2005), messages that spark strong emotion – humor, fear, sadness, or

inspiration – seem to be those messages that are most likely to be forwarded. Surprise is also used as an element in an

advertisement. Attention increases ads effectiveness (Rajesh K. Chandy et.al, 2001). Variables that influence attention are appeal

and its prominence. Whereas attributes and appeals can be prominent by virtue of their size, the duration on screen and number of

times ads are shown (Stewrt and Furse, 1986). The influence of the number of ads in a medium and their sequence and placement

on the impact of an individual ad has been investigated extensively (Aaker, Stayman and Hagerty 1986, Finn 1988, Pieters and De

Klerk-Warmerdam 1993, Olsen 1994, Ha 1996). A message style that contrasts with the nature of the context may lead to positive

advertising effects. This phenomenon may be explained by the contrast effect (Meyers-Levy and Tybout 1997): the novelty of ads

and the unexpectedness of the information given its context often lead to increased attention, because the ad is perceived as

innovative and interesting (see also Goodstein 1993). An ad that contrasts with its environment, e.g. in terms of style, stimulates

attention (Juntunen 1995).

Kahneman and Tversky (1979) said that advertisement message by using specific type of frames could affect consumer decisions.

Advertisers can frame the uses of a product in a positive manner, highlighting the potential of the product to provide gains (or

obtain benefits), or a negative manner, highlighting its potential to avoid loss (or solve problems) (Levin, Schneider, and Gaeth

1998; Meyerowitz and Chaiken 1987). Consumers infer that the brand or service must be good if it is endorsed by the expert

(Petty and Cacioppo 1986; Petty, Cacioppo, and Goldman 1981; Ratneshwar and Chaiken 1991; Yalch and Yalch 1984). Opinion

leaders are typically those who pick up information, are socially well connected, and are trusted and looked at by their social

circles to pass on knowledge or opinions. This interpersonal influence is an important aspect of information sharing because rather

than the mass media the opinion leader sharing the information is usually a trusted source (Katz, 1957). Advertising creates

lifestyle. It aims at building relationship between customers and brands (Jaishri and Shruti). Country-of-origin of the firms and

cultural trends affects advertisements (Susan H. C. Tai, 1998). Advertisers use a status appeal to establish something as a high

quality, expensive product (Izian Idris et.al, 2009). Brands can use viral video in their campaign to create a buzz online and offer

something exclusive to users and reach a large audience (Blaise Jenkins, 2011).


The study was conducted to find out the factors, which inspire customers to pass on advertising messages. A sample of 150

respondents was drawn from the Gwalior and Agra region of Northern India, with the help of non-probability convenient

sampling. Sample size of 150 is more than five times of the number of variables considered for the research. The respondents

were asked to state their level of agreement or disagreement on the following parameters on a five point Likert scale. 29 attributes

in the questionnaire are selected based on the review of literature. These attributes are presented in the questionnaire Appendix -I.

Using SPSS 18.0 a factor analysis was carried out and results are drawn with the help of rotated component matrix. In order to

establish the strength of the factor analysis solution it is essential to establish the reliability and validity of the obtained reduction.

This is done with the help of KMO and Bartlett’s test of sphericity. It was found that KMO statistics is greater than 0.6, indicating

that factor analysis could be used for the given set of data.

Further, Bartlett’s test of sphericity testing for the significance of the correlation matrix of the variables indicates that the

correlation coefficient matrix is significant as indicated by the p value corresponding to the chi-square statistic. The p value is

0.000, which is less than 0.05, the assumed level of significance, indicating the acceptance of the hypothesis that the correlation

matrix of the variables is significant. This justifies the use of the factor analysis for this problem.





FINDINGS

In order to interpret the results of Table-I from rotated component matrix, a cut-off point is decided. There is no hard and fast rule

to decide the cut-off point, but generally, it is taken above 0.5. Now, using 0.7 as the cut-off point, two variables corresponding to

factor 1 having a factor loading above 0.7 are ads communicate benefits related to product, ads convey about offers and discounts.

Table II is showing the variables corresponding to all the factors. A variable, which appears in one factor, does not appear in

other. Our next job is to name these factors and rank their importance. The factor one comprising of two variables communication

benefits related to product and ads conveys about offers and discounts. This factor could be names as Promoted Benefits. The

second factor comprises of two variables, which reflects importance of reference groups and the aspiration in ads. This factor

could be named as aspiring reference group. The third factor composed of three variables realistic view of the advertisement,

entertainment in the advertisement, relevance of advertisement with the product. This factor could be named as realistic and

entertaining group. Fourth factor composed of three important variables, safety appeal; esteem need, perception about country or

place. This factor could be named as patriotic high self-esteem and safety focused group. Fifth factor contains two variables

feeling of personal accomplishment and feeling of personal satisfaction. This factor could be named as feeling of self-fulfillment.

Similarly sixth factor is catchy ads. Seventh factor comprises of two variables, personal security and trust is ads. This factor could

be termed as truth and certainty. Factor, which is on number eight, consist of two variables, ads have intensity and exposure and

ads create contrast. This could be named as intensity and contrast. Ninth and tenth factors are named as belongingness sought

and astonishment sought.

The total variance table indicates that 19.5% of the variation are explained by factor 1 i.e. Benefit Sought. It shows that the

attribute which inspires the customer most to pass on advertising message are benefits related to product, discount and offers. In

order to make advertisement more viral companies should focus upon providing benefit-sought factor while making its

advertisements. Factor 2 aspiring reference group explains 8.76% of variance that is reference group and feeling of aspiration

plays a significant role in the passing ads message after the first factors. Variance explained by all other factors and their relative

importance are given in Table III.

CONCLUSION

After interpreting the findings ten factors responsible for passing advertising messages are identified. First factor is promoted

benefits which explains 19.5% of total variance is composed of two variables communicate benefits related to product and convey

about offers and discounts. Discount or price-off deals usually present a readily apparent value to shoppers, especially when they

have a reference price point for the brand and thus recognize the value of discount (Blair and London, 1981). Discount is a strong

influencer at point of purchase. It may lead to bulk purchase but overuse of discounts and offers can be harmful to a brand, it may

reduce perceived value of the product.

Priya Raghubir and Kim Corfman found that offering a price promotion is more likely to lower a brand evaluation when the

brand is not been promoted previously compared to when it has been previously promoted, further promotions which are

uncommon in the industry could be evaluated negatively. It may lead to sales promotion trap as several competitors’ could use it

extensively (William E. Mayers, 1985). On the other hand ads showing benefits related to the product are more informative and

lead to create positive attitude of the customers towards the product which may lead to either recommendation of the product to

others or final purchase of the product. Usually high-involvement or technical products rely upon the use of this type of appeal. It

could further be used to compare the two products. To communicate unique selling proposition of any product ads must show

specific benefit of the same. The content of these ads emphasizes facts, learning, and the logic of persuasion. We must be careful

while drafting strategies about this factor. Use of discounts and offers in advertisements are not much useful in long term

especially when your product is new in the market it may spread word-of-mouth or ads message but for the short run only

therefore in long run it is not recommended. Discounts and offers could be used in already existing and established brands but its

continuous and prolonged use must be avoided. Below is the matrix suggested for the use of this factor in advertisements for new

and existing product?

Factor-1: Promoted Benefits Discounts & Offers Benefits

New Product Not Recommended Recommended

Existing Product Recommended Recommended

Group influence helps ads makers to develop advertisements. Individuals wish to belong as per his aspirations. Simultaneously

individual might not wish to be a part of a group as he or she does not feel any association with the group. As per this research

people like to pass on ads messages, which shows reference groups whom people, wish to belong. Lessing and Park explain,

“What is important is the psychological image associated with the group is real or imaginary”. Individual desire to a part of the

aspiration group to improve its image. Researchers Escales and Bettman (2003) utilize the concept of self-verification and self

enhancement as psychological reasons to join an aspiration group. For example, a stud buying a Royal Enfield Bike and riding on

roads thinking that people see him as a stud or a macho man.





Third factor is realistic and entertaining group it explains 7.2% of the variations in the model. This type of ads should include

realistic feature they gives real and rational information. Usually ads in print form use realistic approach. Ads of high involvement

products and industrial product should use such approach. Combination of entertainment element with realistic view will leave a

better impact on the consumers and prompt them to pass on the ad messages.

LIMITATIONS

The sampling area is restricted up to Northern India only and sample size should have been raised more. Numbers of attributes

which affect advertising message to pass on are numerous further research could be done by including more attributes. Conclusion

is restricted up to top three factors showing 35.5% of the variations explained by the model, leaving a scope open for the

interpretations of the other factors.

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43. Retrieved from http://lef.csc.com/leads/outside-in-assessment

44. Retrieved from http://shodhganga.inflibnet.ac.in/bitstream/10603/10528/11/11_bibliography.pdf

45. Retrieved from http://shodhganga.inflibnet.ac.in/bitstream/10603/3652/15/15_chapter%207.pdf

46. Retrieved from http://www.gcbe.us/10th_GCBE/data/Elisabetta%20Corvi,%20Michelle%20Bonera.doc

47. Retrieved from

http://www.researchgate.net/publication/232572343_Effects_of_message_repetition_and_position_on_cogn...

APPENDIX

Appendix-I: Questionnaire

Following Attributes of Advertisement

Inspires me to Pass on Ad Message

SA N SD

SA A N D SD

Realistic view of the advertisement 5 4 3 2 1

Entertainment in the advertisement 5 4 3 2 1

Relevance of advertisement with the product 5 4 3 2 1

Reinforcement of positive feeling about the product 5 4 3 2 1

Information about the product 5 4 3 2 1

As it catches my attention 5 4 3 2 1

As it is inspiring 5 4 3 2 1

As it gives feeling of personal accomplishment 5 4 3 2 1

As it gives feeling of peace of mind 5 4 3 2 1

As it gives feeling of personal satisfaction 5 4 3 2 1

As it gives feeling of personal security 5 4 3 2 1

As I trust the advertisement 5 4 3 2 1

As it understand my needs 5 4 3 2 1

As ads have a feeling of love and belongingness 5 4 3 2 1

As ads have safety appeal 5 4 3 2 1

As ads fulfills esteem need 5 4 3 2 1

As ads reflects perception about a country or place 5 4 3 2 1

As ads reflects lifestyle 5 4 3 2 1

As ads have intensity & exposure 5 4 3 2 1

As ads creates contrast 5 4 3 2 1

As ads is in series 5 4 3 2 1

Ads have an element of surprise 5 4 3 2 1

As ads have opinion leaders 5 4 3 2 1

As ads have reference groups 5 4 3 2 1

http://citeseerx.ist.psu.edu/showciting?cid=1254160

http://lef.csc.com/leads/outside-in-assessment

http://shodhganga.inflibnet.ac.in/bitstream/10603/10528/11/11_bibliography.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/3652/15/15_chapter%207.pdf

http://www.gcbe.us/10th_GCBE/data/Elisabetta%20Corvi,%20Michelle%20Bonera.doc

http://www.researchgate.net/publication/232572343_Effects_of_message_repetition_and_position_on_cogn





As ads shows aspirations 5 4 3 2 1

As ads shows cultural trends 5 4 3 2 1

As ads convey prestige 5 4 3 2 1

Ads communicate benefits related to product 5 4 3 2 1

Ads conveys about offers & discounts 5 4 3 2 1


Note: Please tick the preferred box according to your preferences on the scale 1-5.

(Level of agreement with the statement) = 5- Strongly Agree (SA), 4- Agree (A),

3- Neutral (N), 2- Disagree (D), 1- Strongly Disagree (SD).

Table-I: Rotated Component Matrix

1 2 3 4 5 6 7 8 9 10

AE1 .072 .091 .814 .040 -.043 .145 .150 .054 .048 .000

AE2 .189 .199 .813 -.021 -.022 .035 -.035 .080 -.067 .020

AE3 .320 -.082 .692 .194 .038 .095 .148 .026 -.041 .246

AE4 .587 -.070 .226 .114 .211 .168 -.058 -.157 .077 .245

AE5 .267 -.086 .135 .224 .159 .630 -.039 .012 -.162 .209

AE6 .051 .117 .143 -.087 -.077 .814 .135 -.026 .007 .039

AE7 -.037 .184 .024 .077 .435 .640 -.026 .147 .218 -.155

HU1 .061 .011 -.013 -.026 .699 .363 .110 -.034 .010 -.128

HU2 -.014 .011 -.241 .041 .648 .008 .104 .060 .435 .114

HU3 .113 .107 .068 .077 .732 -.082 .360 .058 -.118 .064

HU4 -.063 .157 .181 .049 .398 -.123 .716 -.011 .073 -.095

PV1 .053 .020 .076 .020 .073 .119 .815 .017 .057 .023

PV2 .477 .061 -.050 .170 .185 .240 .517 -.087 .124 .221

PF1 .113 -.012 .001 .143 .078 .009 .107 .043 .884 .053

PF2 -.037 .143 .287 .752 .024 -.002 .092 .047 .118 -.095

PF3 .139 -.013 .096 .830 .014 .100 .117 -.011 .115 .015

PF4 .193 .144 -.164 .699 .076 -.070 -.104 .117 .003 .036

PF5 .380 -.074 -.090 .512 -.032 .248 .041 .373 -.260 .281

SF1 .136 .077 -.022 .070 -.089 .123 .197 .809 .180 -.034

SF2 .078 .014 .154 .086 .155 -.090 -.169 .743 -.117 .109

SF3 -.167 .179 .340 .127 .397 -.003 -.218 .411 .147 .204

SF4 -.102 .234 .156 -.014 -.015 .052 .019 .114 .072 .839

SOF1 -.105 .647 .057 .284 .051 .083 .243 .147 -.016 .221

SOF2 -.097 .789 .059 .123 .034 .135 .000 -.097 .029 .038

SOF3 .351 .682 .106 -.100 -.034 .132 .088 .213 .028 .122

SOF4 .391 .676 .053 -.027 .116 -.151 -.022 .006 -.107 -.003

SOF5 .490 .466 .185 .125 .162 -.048 -.042 .034 .230 -.116

SOF6 .701 .165 .230 .045 -.146 .048 .145 .214 .031 -.090

SOF7 .696 .135 .122 .223 -.002 .058 .008 .169 -.002 -.249


Table-II: Selected Factors

Selected Factors Variables Covered and Results of Component Matrix

Promoted Benefits

People pass ads messages

1.Ads communicate benefits related to product (.701)

2. Ads conveys about offers & discounts (.70)

Aspiring Reference Group People pass ads messages

1. As ads have reference groups (0.789)

2. As ads shows aspirations (0.70)

Realistic and Entertaining Group People pass ads messages

1. Realistic view of the advertisement (0.814)

2. Entertainment in the advertisement (0.813)

3. Relevance of advertisement with the product (0.70)

Patriotic High Self Esteem

and Safety Focused Group

People pass ads messages

1. As ads have safety appeal (0.752)





2. As ads fulfills esteem need (0.830)

3. As ads reflects perception about a country or place (0.70)

Feeling of Self-fulfillment People pass ads messages

1. As it gives feeling of personal accomplishment (0.70)

2. As it gives feeling of personal satisfaction (0.732)

Catchy Ads People pass ads messages

1. As it catches my attention (0.814)

Truth and Certainty People pass ads messages

1. As it gives feeling of personal security (0.716)

2. As I trust the advertisement (0.815)

Intensity and Contrast People pass ads messages

1. As ads have intensity & exposure (0.809)

2. As ads creates contrast (0734)

Belongingness Sought People pass ads messages

1. As ads have a feeling of love and belongingness (0.884)

Astonishment Sought People pass ads messages

1. Ads have an element of surprise (0.839)


Table-III: Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 5.673 19.560 19.560 5.673 19.560 19.560

2 2.543 8.767 28.328 2.543 8.767 28.328

3 2.085 7.189 35.517 2.085 7.189 35.517

4 1.968 6.785 42.302 1.968 6.785 42.302

5 1.704 5.877 48.178 1.704 5.877 48.178

6 1.562 5.387 53.565 1.562 5.387 53.565

7 1.406 4.849 58.413 1.406 4.849 58.413

8 1.235 4.258 62.671 1.235 4.258 62.671

9 1.098 3.787 66.459 1.098 3.787 66.459

10 1.025 3.536 69.995 1.025 3.536 69.995

11 .885 3.052 73.047

12 .805 2.776 75.822

13 .731 2.521 78.343

14 .662 2.281 80.624

15 .659 2.274 82.898

16 .603 2.080 84.979

17 .536 1.847 86.825

18 .511 1.764 88.589

19 .480 1.654 90.243

20 .438 1.510 91.754

21 .387 1.334 93.088

22 .376 1.297 94.385

23 .305 1.051 95.436

24 .301 1.039 96.474

25 .255 .880 97.354

26 .226 .780 98.134

27 .204 .705 98.838

28 .172 .593 99.431

29 .165 .569 100.000


*****





A STUDY ON IMPACT OF WORK-LIFE BALANCE ISSUES ON

PERFORMANCE OF PHARMA SALES MANAGERS

Dr. Rose Mary Dara16 V. Nagalakshmi17

ABSTRACT

In terms of Indian context, the worry over work-life balance is gradually becoming a common talk. After going back home,

employee should not carry any organizational stress with him. Every individual employee has two roles to play- personal and

professional; each role having different set of demands under different circumstances. Along with the role of as an employee,

the person has to justify various other roles in his life. When such role demands overlap, numerous problems are to be faced

leading to losses for all concerned: the individual, the family, the organization and the society. In sales job, the performance

pressure is significantly high leading to stress and other problems. This exploratory research is an attempt to study the work-

life balance issues with reference to area sales managers working in pharmaceutical sector. The results derived from data

analysis disclose considerable results with respect to work-life equilibrium. The study has extensive implications for industry

in particular.

KEYWORDS

Role Overlap, Work-Life Equilibrium, Organizational Stress, Role Overlap etc.

INTRODUCTION

Sales have been considered as one of the most rewarding and challenging fields of employment in India. This field has its own

magnetism and uniqueness, which is different from other fields of specializations. Due to attractive remuneration package,

extensive travelling involved and target-driven performance incentives, many ambitious candidates enter into sales and get

success. This field is generally suitable for aggressive, extrovert, result-oriented persons, who like extensive travelling and

meeting people. Male aspirants have typically dominated this field of employment. However, due to opening up of new markets

and getting attracted to fair remuneration, many female incumbents have started in flowing into sales.

Among all the other various industrial sectors, pharmaceutical sector is known for its distinctive marketing approach. Excluding

on-the-counter drugs, pharma companies cannot directly float their advertisements on various channels. They have to rely

exclusively on direct sales. The distinctiveness of the pharma sector lies in the fact that the companies do not aim the customer or

consumer, rather they target the reference person i.e. the medical practitioner. A sales person in Pharma Company has to meet the

doctors, elucidate about the medicines and request for prescriptions. Likewise, he/she has to contact the medicine retailers

(medical stores) for ensuring regular supply of company’s products. Hence, the job of sales person in pharma becomes unique and

difficult since he/she has to persuade a person who is more qualified than him/her.

Mainly, an employee has two roles to play: professional and personal roles. This has a considerable role in determining the

performance of an individual particularly in Indian context. Along with the role of as an employee, the person has to justify

various other roles in his life like son/daughter, husband/wife, father/mother etc. Each role demands specific expectations from

incumbents. Due to various factors like organizational and personal, role clashes are observed within an individual which lead to

undesirable effects on performance at all levels. Role clash is also caused by the reverse relation i.e. personal level stress affecting

job performance. This role clash results into stress and burnout leading to work-life imbalance. Work-life balance is a situation

where an individual manages actual or possible conflict between different demands on his or her time and energy in a way that

satisfies his or her needs for well-being and self-fulfillment (Clutter buck, 2003).

Work-life imbalance is a familiar phenomenon observed in salespersons. In sales, one has to work on toes to complete the sales

targets. At times, their performance goes down due to various internal and external factors. This starts affecting their personal

lives as well. Work-life balance can be represented in two spheres indicating two roles: personal and professional. Figure 1

exhibits regular interaction between two spheres. The semi-permeable spheres exhibit regular contact of these spheres with

external environment. When organizational life sphere starts interfering into personal life sphere or vice-versa, it leads to an

imbalance in work and life, which is depicted in figure-2.

Hence, there must be a proper balance between these two spheres. The accomplishment of better work-life balance can give in

dividends for employers in terms of having a further motivated, productive and less stressed workforce that feels valued; attracting

a wider range of candidates; increased productivity and reduced absenteeism; acquiring the reputation of being an employer of

choice; retaining valued employees; achieving reduced costs and maximizing the available labour (Byrne, 2005). In Indian

16Assistant Professor, GATES Institute of Technology, Andhra Pradesh, India,[email protected] 17Student, GATES Institute of Technology, Andhra Pradesh, India,[email protected]







context, the concern of work-life balance becomes vital for all concerned. This study is an attempt to throw light on work-life

balance issues with reference to area sales managers in pharma companies. Area sales manager in pharma company is the position

typically above the frontline salespersons (i.e. medical representatives), who has to report to regional sales manager.


In this section, a review of selected research work conducted in this subject matter is mentioned. Moncrieff et al (1997) has

examined the precursors and consequences of salesperson job stress. According to author, there are a number of organizational

variables including met expectations, role conflict, role ambiguity, job satisfaction, organization commitment and intention to

leave which influence job stress. Low et al (2001) has studied the antecedents and outcomes of salesperson exhausted with special

reference to Australia. He found out that intrinsic motivation, role ambiguity and role conflict are considerable antecedents of

burnout and performance is the outcome.

Crooker et al (2002) has studied the relationship between life complexity and dynamism that affect work-life balance. The author

has explained individual value systems on the relationship between life complexity and work-life balance. Guest (2002) has

explored the causes why work-life balance has become a significant topic for research and policy in some countries. McDowell

(2004) has elaborated the ways in which organizations and institutions function at a range of scales as well as new sets of

responsibilities towards co-workers, members of households and the public.

Byrne (2005) has highlighted the concept of the work-life balance as a means of tackling the problem of mounting amounts of

stress in the work-place. Morris and Madsen (2007) have revealed the importance of work-life balance. By better understanding

work-life theory, HR professionals can contribute to the deliberate development of policies, practices, programs and interventions.

Moore (2007) conducted a research to compare work-life balance issues with workers and managers of an MNC. It was concluded

that many of the managers were not able to have work-life balance. In a research, Hughes and Bozionelos (2007) observed that

work-life imbalance was not only a source of concern, but also that it was the key source of dissatisfaction for participants who

have responded in his research. To set up and exemplify the levels of awareness of work-life balance policies within the surveying

profession in Australia and New Zealand, Wilkinson (2008) conducted a research. It was concluded that the consequences of an

imbalance between work and personal or family life is emotional exhaustion, cynicism and burnout.

OBJECTIVES OF RESEARCH

In India, the intensifying cases of stress-related problems among individuals provide an alarming situation. Now, people in the age

groups of 30s and 40s are suffering from health problems due to work pressure and other problems. In this study, the major issues

concerning work-life balance are developed into with reference to area sales managers in pharma companies in Hyderabad. The

objectives of research are as follows:

To study the work-life balance issues with reference to area sales managers in pharma companies.

To study the factors affecting work-life balance of sales managers.

To find out the factors leading to work-life imbalance of sales managers.

To propose measures for an effective balance between work and life.


Sampling: It is an exploratory study made with an intension to look into work-life balance issues in case of area sales managers

employed in pharma companies in Hyderabad. There were 80 respondents selected from Hyderabad. All of them were married

male employees having one or two children. Medical representatives were not included in the study. A simple, non-probability

sampling included only area sales managers.

Sources of Data: Secondary data were collected from Internet, books, newspapers, journals, business magazines etc. Primary data

was collected through a self-administered and non-disguised five-point scale questionnaire, which consisted of 13 statements. The

scale was Likert’s five-point scale. The questionnaires were handed over to 102 respondents, out of which only 80 were received.

After collecting the data, it was tabulated in Excel sheet and analyzed by using z-test.

HYPOTHESES OF STUDY

Null hypotheses were framed and tested for significance to prove the objectives in a systematic manner. The null hypotheses were

as follows:

H01: There is no significant impact of nature of job on work-life balance proposition with respect to area sales managers

in pharma companies.

H02: There is no significant impact of work-life equilibrium on overall performance of area sales managers.





RESULTS AND INTERPRETATION

On applying the formula of z-test, both the null hypotheses were found to be rejected at 0.05 level of significance. The result of

hypothesis testing by z-test is shown in table 1. It shows that there is significant impact of work-life equilibrium on overall

performance of area sales managers. Similarly, work-life equilibrium has major impact on overall performance of sales people. It

can be largely attributed to the nature of job. The job of area sales manager involves monitoring medical representatives and

reporting to regional sales manager. They have to work with medical representative and solve their problems concerning doctors’

prescription, retailer issues etc. Some of them reported the feeling of getting ‘sandwiched’ between their juniors and seniors (i.e.

medical representatives and regional managers). It seemed that they were happy at the position of medical representatives. Some

respondents mentioned the examples of medical representatives who were working on the same position for a long time because

they have not accepted the promotion as area sales manager.

In pharmaceutical sales, one has to enter as medical representative and get promoted as area sales manager, regional sales

manager and zonal manager. Due to the entry of big players, the competition has become fiercer than ever. The doctor has much

wider choice of prescription for his patients. While a representative is answerable to a limited market, area sales manager has a

broader domain to control. He is responsible for collective efforts of his team of representatives in terms of sales performance.

Moreover, due to extensive travelling, the area manager feels exhausted. Some respondents have cited the examples of companies

whom they call ‘pressure cooker’. These are the companies known for extreme sales pressures. In this sector, job-hopping has

become a familiar trend. This causes numerous problems in personal and social life as well. It can be ultimately inferred that

work-life imbalance is a significant factor leading to overall performance of sales persons.

CONCLUSION AND IMPLICATIONS

The study has many implications for pharmaceutical companies in particular. Escalating cases of work-life imbalance have

resulted into high rates of employee turnover. In this study, more than one-third of respondents have expressed their wish to leave

the field of sales and try their fortune elsewhere. This is the prime time when HR managers should make more serious efforts

towards striking a balance between work and life for their sales persons, which will ultimately end up in a win-win equation for

all. When employees reach their homes, they should not carry any organizational stress with them. Work-life balance policies are

advantageous for individuals, their families, organizations, and society (Brough et al, 2008). The difficult challenge today faced

by the HR managers is retaining their talent. There is a need to make the job profile of sales persons more promising and less

stressing. However, the very nature of a specific job position cannot be altered, but the way it is performed requires a change.

Sales department is the most vital function in a pharmaceutical company; it is the lifeblood. There are some pharma companies as

reported by the respondents, which are known for relaxed working environment, flexibility and autonomy in sales department.

These companies have most stable employees and good financial yields. Briefly, there should be a human side in managing the

sales performance.

This study was confined to pharma-sector area sales managers in one city of a state. The findings of the study should not be

generalized for non-pharma salespersons. The results may also differ in case of managers in other functional areas. Further studies

can be carried out on a large sample size and sector-based comparison can be done.

REFERENCES

1. Brough, P., Holt, J., Bauld, R., Biggs, A., & Ryan, C. (2008). The ability of work-life balance policies to influence key

social/organisational issues. Asia Pacific Journal of Human Resources, 46(3), 261-274.

2. Byrne, U. (2005). Work-life balance: Why are we talking about it at all? Business Information Review, 22, 53-59.

3. Clayton, Don. (2004). Leadershift: The Work-life Balance Program, pp. 126-127. Victoria: Australian Council for

Educational Research.

4. Clutterbuck, David. (2003). Managing the Work-Life Balance, pp. 8-9. UK: Chartered Institute of Personnel and

Development.

5. Coussey, Mary. (2000). Getting the right work-life balance: Implementing family-friendly practices, pp. 2-18. UK:

Chartered Institute of Personnel and Development.

6. Crooker, K., Smith, F. L., & Tabak, F. (2002). Creating work-life balance: A model of pluralism across life domains.

HRD Review, 1, 387-419.

7. Davis, M. F., Fagnani, J., Giovannini, D., Hojgaard, L., & Clarke, H. (2004). Fathers and Mothers’ Dilemmas of the

Work-life Balance: A Comparative Study, pp. 209-210. Netherland: Kluwer Academic Publishers.





8. Guest, D. E. (2002). Perspectives on the Study of Work-life Balance. Social Science Information, 41, 255-279.

9. 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, 145-154.

10. Low, George S., Cravens, David W., Grant, K., & Moncrief, William C. (2001). Antecedents and consequences of

salesperson burnout. European Journal of Marketing, 35(5/6), 587-611.

11. Mcdowell, L. (2004). Work, workfare, work/life balance and an ethic of care. Progress in Human Geography, 28, 145-

163.

12. McIntosh, Stewart. (2003). Work-Life Balance: How Life Coaching Can Help. Business Information Review, 20, 181-

189.

13. Moncrief, William C., Babakus, Emin, Cravens, David W., & Johnston, Mark. (1997). Examining the antecedents and

consequences of salesperson job stress. European Journal of Marketing, 31(11/12), 786-798.

14. Moore, Fiona. (2007). Work-life balance: Contrasting managers and workers in an MNC. Employee Relations, 29(4),

385-399.

15. Morris, M. L., & Madsen, S. R. (2007). Advancing work-life integration in individuals, organizations, and communities.

Advances in Developing Human Resources, 9, 439-454.

16. Wilkinson, S. J. (2008). Work-life balance in the Australian and New Zealand surveying profession. Structural Survey,

26(2), 120-130.

17. Zikmund, W. (2002). Business research methods, pp. 88-89. USA: Thomson-South Western Publishers.

18. Retrieved from http://chimc.in/Volume2.1/Volume2Issue1/DrJitendraKumarsharma.pdf

19. Retrieved from http://www.chimc.in/volume2.1/volume2issue1/drjitendrakumarsharma.pdf

20. Retrieved from http://annemary.org/journal/Gaurav%20Sharma%20E%20editor.pdf

APPENDIX

Figure-1: Work-life Balance Equilibrium


Figure-2: Work-life Imbalance Organization


Table-1: Result of Hypotheses testing by Z – Test

S. No. Statement Calculated Value of Z Result

H01 No significant impact of nature of job on work - life

balance with respect to area sales manager.

2.213 H01 Rejected

H02 No significant impact of work – life equilibrium

on overall performance of sales managers.

2.703 H012 Rejected


*****

http://chimc.in/Volume2.1/Volume2Issue1/DrJitendraKumarsharma.pdf

http://www.chimc.in/volume2.1/volume2issue1/drjitendrakumarsharma.pdf

http://annemary.org/journal/Gaurav%20Sharma%20E%20editor.pdf





ENVIRONMENTALISM AND SUSTAINABLE DEVELOPMENT

FROM THE POINT OF VIEW OF TOURISM

Ranit Kishore18 Dr. Pankaj Bijalwan19

ABSTRACT

Because of the rapid growth of the tourism sector, special emphasis is placed on destinations and tourism products connected

to or based on certain physical and environmental factors. However, the negative environmental consequences of tourism are,

in many cases, overemphasized to the social and/or economic elements of sustainable development. Thus, it is important to

find an adequate balance of the elements mentioned above within tourism development in order to achieve an optimal way of

fulfilling all requirements of sustainable development.

In order to this, a potential method is introduced by applying the Sustainability Value Map, developed originally for buildings

and urban development projects, to the evaluation of sustainable tourism products. This method implies further questions

arisen concerning the selection of the right set of indicators and the importance of local or regional issues. Using it as a tool, it

may promote the process of holistic tourism planning and development.

KEYWORDS

Environmentalism, Sustainable Tourism, Environmental Impacts, Sustainability Value Map etc.

INTRODUCTION

Sustainability in Tourism and Its Aspects

The term ‘sustainable development’, in the last decade of the 20th century, became widely used by governments, non-

governmental organizations, the private sector and academia. Although, sustainable development is associated by many with

issues like energy use, pollution and waste, they are now recognized as certain elements of sustainability, and the concept

addresses three equally important issues: environment, economy and society (Holden, 2000).The concept has been applied in the

tourism sector in various ways of which one gives the following

Figure-1: Main Factors of Destinations Selection


The most popular locations for (activity-based) tourism are usually the most susceptible (coastal and mountain areas) ones, too.

Sustainability has become a focal point of interest especially in areas, which in the future, will become more susceptible or more

popular destinations and as such, the increasing number of visitors (i.e. the higher level of crowdedness) will result in more

serious of environmental impacts.

18Assistant Professor, COER School of Management, Roorkee, India, [email protected] 19Professor and Head COER School of Management , Roorkee, India, [email protected]







The development of tourism requires physical resources to facilitate its expansion. Maintaining the quality of the environment,

however, is usually also among the main goals of sustainable tourism as set up by various authors. Despite the confusion about

what is meant to be an environmentally ‘responsible’ approach to tourism development, it is apparent that the protection of the

natural resources upon which tourism is based is essential for the sustainable development of a location (Hall et al., 1998). It is

also important to realize that sustainable development is not concerned with the preservation of the physical environment but with

its development based on sustainable principles of which environment is only one.

The Relevance of Environmental Impacts of Tourism

With increasing numbers of people, visiting a spatially diminishing and continually degraded natural world there is much scope

for negative impact (Newsome et al., 2002). The negative environmental consequences of tourism include resource usage (land,

water, etc.), human behaviour towards the destination environment and pollution (water, noise, air and aesthetic). The impacts of

tourism and recreation on the physical environment (interaction of humans with their environment) are important because of the

sheer significance of the physical environment for the recreation and tourism industry. In the absence of an attractive environment,

there would be little tourism (Mathieson et al., 1982).

Tourism in natural areas affects upon the natural environment in either positive or negative ways; it also has many social and

economic consequences. Clearly, there are also social and economic impacts associated with recreational activity and tourism

development (Newsome et al., 2002). It is often disregarded, however, that impact significance can depend on the type and source

of impact (diversity, intensity and duration of the activities), environmental sensitivity (location), other cumulative pressures and

the effectiveness of any management that is in place. Mountain environments are susceptible to disturbance due to steep slopes

and thin soils and this is especially so in the high rainfall environments that spans the tropics (Ahmad, 1993).

It is important to detect the effects of tourism on all aspects of an ecosystem as well as to distinguish between perceptions and

actual impacts of tourism.

FINDING A BALANCE – VISUALLY

Finding a Balance

The goal of any kind of sustainable development project is finding an optimal way of fulfilling all requirements of the concept.

The maximization of one or two leads to an unbalanced way of development, which might be sustainable regarding these

parameters but not the rest.

However, ecological aspects often gain priority within the concept. When the susceptibility of the physical environment represents

an obstacle to the development of a viable tourism sector, sustainable tourism development cannot be the case. Environmental

issues are continuous focal points of activity at resort and hotel developments, particularly when the development is situated

entirely or partly in a natural setting. The impact of these they are found either at the edge of a natural area/national park or at

areas of particularly hard risks tends to be more significant.

A major study of resident perceptions on the impact of tourism on natural environments in Hawaii, North Wales and Turkey

carried out by Liu et al. (1987) showed the highest priority given to the protection of the environment for planning purposes. It

was ranked higher than cultural benefits, social costs and even economic benefits. Thus, regarding environmental impacts, there is

usually an obvious imbalance observed in many respects. First, negative impacts of tourism on the environment have been

discussed in more details than positive. In addition, social and economic aspects of tourism development projects are often

disregarded to environmental ones (Newsome et al., 2002).

Taken environment as whole, appreciation of the complexity of the environment as a system is often lacking. Local circumstances

may support that certain environmental aspects gain higher priority of importance. Moreover, what is a well-recognized and

significant impact in one region or type of environment may not be a problem elsewhere. For destination management to be

sustainable it needs to address all the economic, social and environmental issues of that particular area.

A number of methodologies have been put forward in an attempt to ensure that tourism activity is carried out in a sustainable way.

Briefly, tourism development is sustainable only when none of the core components is neglected to others. Theories and

management methods of sustainable tourism development and life-quality improvement must be applied to all types of tourism

and destinations. In order to secure long-term sustainability, the accordance amongst these is indispensable. Monitoring survey

and analysis of various indicators assumes the existence of a complex, long-term approach, of which primary aim is the

establishment of sustainable welfare as shown in figure 2.





Figure-2: The System of Sustainable Development, Tourism Indicators and Life Quality


Adding Visualization

Applying the Sustainability Value Map

In order to select an adequate method of integrated approach of planning, a useful tool would be the Sustainability Value Map

(SVM), developed by Chris Butters, originally for buildings and urban development projects, although it can also be applied to the

evaluation of any other sustainable products. The SVM visualizes the three core elements of sustainability and the degree of what

any product fulfills its goal.

A summary of the main features of SVM (Urban Ecology) is as follows. For each of the three main areas, eight parameters are

defined, thus a product is benchmarked by 24 parameters in a complex way. The scale is set from 0 to 5 where 5 means what is

seen as fully sustainable today. The values are scaled so that the outer rim, corresponding to a “horizon” of full sustainability, is

clearly shown to be off.

The selection of parameters is, though provisional, systematic. Considering that sustainability is a dynamic process, the model can

be used in relation to time, to assess how the sustainability of the product develops from year to year. In addition, by applying the

same indicators, it can be a tool for comparing different projects. However, as pointed out earlier in this paper, impacts my vary

locally, it is important to bear it in mind that the indicators used can and should vary to some extent depending on local conditions

and on project scale. In addition, as some of the components are rather complex, for a full assessment most will need a more

detailed breakdown.

Applying the Value Map for tourism development projects may be relevant from the point of view of key elements often

associated with sustainable tourism, i.e. preservation of the current resource basis for future generations, maintaining the

productivity of the resource basis, maintaining biodiversity and avoiding irreversible environmental changes. In its simplified

form, it provides a checklist and framework for designers, and for discussion amongst participants in a planning process. In its

detailed form, ideally, it gives a complete qualitative and quantitative picture of the condition of a project (Urban Ecology).

Visualization is further promoted by having the mean value of indicators all three areas calculated, and added to the original

version of SVM.

Selecting the Right Set of Indicators

As pointed out by Newsome and Moore (2002), the degree and extent of any negative impacts, however, will depend on where the

development is located, building design and adaptation to existing natural conditions, waste treatment systems, recycling and

pattern of resource consumption as well as approaches to the recreational activities that take place in association with the

development.





Due to both the great variety of tourism activities and that of the local endowments, questions may be raised on the relevance and

general applicability of a given indicator. One might be used restricted only for certain local or regional issues. Furthermore, there

is a necessity to distinguish qualitative and quantitative parameters; and finally two more questions are raised as (a) whether the

selected indicator can be quantified, and (b) selecting the right set of indicators is possible at all (Puczkó, 2002). For the latter one,

an integrated approach of planning is required that takes the project scale and local endowments and the variables created based

on these into consideration. In a full assessment, most variables also need a more detailed breakdown.

Examples

As a first step, the SVM is used to evaluate the environmental aspects of tourism development. Taken as an example,

environmental impacts of a fictitious hotel development are discussed hereby and the SVM is applied in figure 3.

Figure-3: Environmental Impacts of Infrastructure and Support


The average conditions of the receiving environment

are well indicated in the figure and can be marked as

‘average’ (with a sustainability value of 3.125).

It can also be seen, however, that waste management,

being a major issue elsewhere too, is the main

problem source. Due to the large amount of volumes

proceeded (average tourists tend to produce more

waste than local people), the low application level of

recycling, waste prevention strategies and the nature

of the receiving environment here, it is an unsolved

problem. Thus, the value given is well below that of

other indicators as shown in table 1.

On the other hand, demands for further development

in fields such as noise prevention or soil prevention

can now be held back as probably adequate measures

have already been to taken to fulfill these goals. For

the evaluation, the most determinant environmental

factors applied are indicated in table 1.

Table-1: Environmental Impacts of Infrastructure and Support Facilities in the

Development of Tourism, Derived from Newsome and Moore (2002)

Activity Possible Impact Sustainability

Value

Land Clearing 4

Noise Disturbance to wildlife 4

Light Pollution

at Night

Disturbance to wildlife

Loss of habitats

Shift in species composition of area

4

Removal of

Vegetation

Smaller population of plants and animals

Weed invasion

Increased fragmentation of habitats

Soil loss

3

Soil Erosion Soil loss

Stream sedimentation and reduced water quality

Noise from generators

4

Energy Supply Pollution from fumes and oil / reduced air quality

Disturbance corridors

3

Water Supply Ground water abstraction / reduced water tables

Construction of dams / disrupted stream flow

Need for solid landfills or removal of waste off-site

3

Waste Disposal Site

Liquid treatment facilities / odour, litter

1

Transportation

Infrastructure Roads

Nutrient , fertilizer , pesticide and oil run off road corridor

impacts and noise from vehicles barriers to animal movement

3






As a next step, the relationship of the three core elements is shown in figure 4. Here, a development project is visualized where

environment seems to be managed in a more or less sustainable way thus is in a generally good conditions indicated by its average

sustainability value of 4.

Key issues of discussing sustainable development projects are about this average. Renewable energy sources (RES) seem to be

one of the keystones of discussion. A survey carried out among tourist operators in Queensland, Australia (Dalton, 2007)

indicated positive interest in installing RES for their operation, and this is of fundamental importance to the viability of future

strategies for increasing RES uptake. It is especially large hotels that tend to be affirmative on this issue may be due to their

perceived market pressure to be ‘Green’. Also, according to Edgar’s (Yielding, 1999) observation, they are more likely to consider

marketing of environmental initiative as an important component for overall business strategy. However, opinions on the

marketing value of RES within the tourism industry are rather mixed.

Figure-4: An Example of the Sustainability Value Map Applied for Tourism Development Projects


In cases, when the goals of sustainability are neither accomplishable from the point of view of the society nor reasonable from the

point of view of the economy, these issues must receive more attention. At this stage, this development does not meet the demand

of the local population at all. Without public involvement and the support of the local economy by fundamental financing for

infrastructure among others, the outcome of this project is rather doubtful. From the point of view of tourists, it can be considered

to be on a somewhat average level. In the one hand, certain aspects (accessibility) indicate a higher level of development whereas

on the other, most of the components (aesthetics, security, variety) are just average.

CONCLUSIONS

The topic of sustainable tourism is still an evolutionary paradigm that is seen as a goal to be achieved for small-scale development

in the supply environment and research enhancement on the niche characteristics in the demand and supply sides of the tourism

system. A sustainable planning approach includes the integration of economic, environmental and socio-cultural values (i.e.

holistic planning), also having it integrated to other planning processes as well as preservation of essential ecological processes.

With its complexity, Sustainable Value Map provides a possibility to the advancement of sustainable tourism development.

However, in order to achieve this, it has to undergo further research with several case studies of all branches of the tourism sector.

REFERENCES

1. Holden, A. (2000). Environment and Tourism, Routledge Introduction to Environment Series, 225. Routledge,

London and New York.

2. Burton, R. (1995). Travel Geography, pp.514. Longman.

3. Rátz, T. (2006). The role of climatic and weather factors in influencing travel behaviour (in Hungarian). Turizmus

Bulletin, 10, Special Edition, 42-53.





4. Dávid, L., Baros, Z., & Szilágyi, Zs. (2006). Dimensions and environmental problems of sport tourism (in Hungarian).

Tájökológiai Lapok, 4(2), 395-405.

5. Hall, C. M. & Lew, A. A. (1998). (eds.) Sustainable Tourism: A Geographical Perspective. Essex: Addison Wesley

Longman.

6. Newsome, D., & Moore, S. A. (2002). Natural Area Tourism, Aspects of Tourism 4, pp.340.Clevedon, England,

Channel View Publications.

7. Mathieson, A., & Wall, G. (1982). Tourism: Economic, Physical and Social Impacts. London, Longman.

8. Ahmad, A. (1993). Environmental impact assessment in the Himalayas: An ecosystem approach. Ambio, 22(1), 4-9.

9. Liu, J. C., Sheldon, P. J., & Var, T. (1987). Resident perception of the environmental impacts of tourism. Annals of

Tourism Research, 14(1), 17-37. Urban Ecology: Projects in Europe - visions for Oslo?

10. Oslo kommune Havnevesenet. Retrieved from http://www.arkitektur.no/files/file46226_urban_ecology.pdf

11. Puczkó, L., & Rátz, T. (2002). Impacts of Tourism (An Introduction), pp.408.Finland, Häme Polytechnic.

12. Dalton, G. J., Lockington, D. A., & Baldock, T. E. (2007). A survey of tourist operator attitudes to renewable energy

supply in Queensland, Australia. Renewable Energy, 32, 567-586.

13. Yielding, E. D. (1999). Giants versus minnows, is there a difference? Progress in Tourism and Hospitality Research,

4(3), 255–265.

14. Retrieved from http://mpra.ub.uni-muenchen.de/6373/1/MPRA_paper_6373.pdf

15. Retrieved from http://mpra.ub.uni-muenchen.de/6373/index.html

16. Retrieved from http://mpra.ub.uni-muenchen.de/6373/

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CORPORATE SOCIAL RESPONSIBILITY OF LIFE INSURANCE CORPORATION

K. Sudha Rani20

ABSTRACT

Corporate Social Responsibility (CSR) is concerned with treating the stakeholders of the organization ethically or in a socially

responsible manner. CSR, if implemented in its true spirit, helps in enhancing the quality of life of the stakeholders and the

society. LIC, having recognized the importance of CSR, has undertaken various measures to satisfy its stakeholders. Further, it

has introduced various social security schemes such as Janashree Bima Yojana, Swarna Jayanti Gram Swarojgar Yojana,

Siksha Sahayog Yojana, Aam Admi Bima Yojana etc., to uplift the poor and downtrodden. Apart from this, it invests a huge

amount of funds in various social and developmental activities. Against this background, an attempt has been made to assess

the various Corporate Social Responsibilities undertaken by LIC.

KEYWORDS

Life Insurance Corporation of India, Stakeholders, Corporate Social Responsibility, Organization Ethics, Social

Security Schemes, Integrated Rural Development Program, Bharat Petroleum Company Limited etc.

INTRODUCTION

Corporate Social Responsibility (CSR) is not a newfangled buzzword. An organization’s influence over employees, customers,

partners, shareholders, the community and the environment cannot be overstated. CSR on a larger plane represents the goodwill a

company can generate through various sustained external initiatives and programs that have a positive impact on society.

The activities and programs of CSR are now quite an integral part of organizational objectives because the survival, long-term

viability and growth of organizations largely depend upon how well it integrates ethical and social issues with other aspects of

business. Hence, organizations are moving towards exhibiting their true corporate citizenship through the triple-bottom line

concept. The “triple bottom line concept” represents the idea that businesses should account for their performance on economic,

environmental and social criteria and attempt to satisfy their stakeholders on all three sets of criteria.

Corporate social responsibility is concerned with treating the stakeholders of the firm ethically or in a socially responsible manner.

Stakeholders exist both within a firm and outside. Consequently, behaving socially responsibly will increase the human

development of stakeholders both within and outside the organization. Public sector organizations have been undertaking

corporate social responsibility admirably along with some large firms in the private sector. It is a fact that one corporate house or

other sponsors most projects / activities of national importance. For instance, BPCL has adopted 37 villages all over India. In all

these villages, it conducted vocational training programs with emphasis on technical expertise, which helped villagers to increase

their income levels. Similarly, Voltas limited has undertaken community development programs to help the not so fortunate ones.

Even LIC is far ahead of many other organizations in discharging its corporate social responsibilities as evident from the benefits,

it passes on continuously to various stakeholders such as employees, agents, poor and down trodden, government and society in

general. For instance, it introduced various schemes such as Janashree Bima Yojana (JBY), Swarna Jayanti Gram Swarojgar

Yojana (SGSY), Social Security Group Insurance Schemes (SSGS), Krishi Shramik Samajik Suraksha Yojana (KSSSY), Critical

Illness Riders (CI Rider), and Aam Admi Bima Yojana (AABY) to help the poor and downtrodden. The corporation covered as

many as 45 occupations under these different schemes. Against this background, the various corporate social responsibilities

undertaken by the LIC to satisfy its stakeholders and also for the upliftment of poor and downtrodden have been discussed

hereunder.

SALARIES AND OTHER BENEFITS PAID TO EMPLOYEES

The LIC is highly employee welfare oriented and it pays very good salaries to its employees. In addition to this, it also pays

pension, gratuity and a number of other perks to its employees. Table-1 shows the salaries and other benefits paid to employees

for the period from 2007-08 to 2011-12.

The table shows that the amount spent on salaries and other benefits has increased from Rs. 5,047.93 crore in 2007-08 to Rs.

10,099.86 crore in 2011-12. Similarly, the number of employees on rolls has increased from 114,045 in 2007-08 to 119,767 in

2011-12 barring a marginal decline in 2010-11. Consequently, the employee benefits on an average rose from Rs. 4,42,629 in

2007-08 to Rs. 8,43,292 in 2011-12. This shows that the LIC is highly employee welfare oriented.

20Lecturer (Commerce), S.D.M.S. Mahila Kalasala, Andhra Pradesh, India, [email protected]






Table–1: Salaries and Other Benefits Paid to Employees

Year Number of Employees

(In number)

Salaries & Other benefits

Paid (Rs in crore)

Average Expenditure on

Each Employee (In rupees)

2007-08 114,045 5,047.93 4,42,629

2008-09 114,916 5,773.71 5,02,428

2009-10 115,966 8,052.46 6,94,381

2010-11 115,362 12,055.28 10,44,995

2011-12 119,767 10,099.86 8,43,292

Sources: Compiled from the annual reports of LIC of India

COMMISSION PAID TO AGENTS

Agents are the life-line of LIC as evident from the fact that more than 90% of new business (life) underwritten by LIC comes via

the agency route. The LIC has a huge agency force of 12,78,234 who are dispersed throughout the country working under 2,048

branches and other offices. In view of the importance of agency force, the LIC pays huge commission to its agents. Table-2 shows

the commission paid to agents for the period from 2007-08 to 2011-12. The table shows that the commission paid to agents has

increased continuously from Rs. 9,568.10 crore in 2007-08 to Rs 14,035.63 crore in 2011-12. Similarly, the number of agents has

also increased from 11.94 lakhs in 2007-08 to 14.03 lakhs in 2009-10. After that, the number of agents has declined steadily and

stood at 12.78 lakhs in 2011-12. The average commission paid to agents has also increased from Rs. 80,152 in 2007-08 to Rs.

1,09,805 in 2011-12 barring a marginal decline in 2008-09.

Table-2: Commission Paid to Agents

Year Number of Agents

(In number)

Commission Paid

(In crore)

Average Commission

Paid (In Rupees)

2007-08 11,93,744 9,568.10 80,152

2008-09 13,44,856 10,033.24 74,605

2009-10 14,02,807 12,110.31 86,329

2010-11 13,37,064 13,308.68 99,537

2011-12 12,78,234 14,035.63 1,09,805


VALUATION SURPLUS PAID TO THE GOVERNMENT

The LIC is a successful organization with its income always more than that of the outgo due to which it generates surplus from its

operations. Out of the surplus available, it pays 5% money as valuation surplus or dividend to the government. Table-3 shows the

valuation surplus or dividend paid to government for the period from 2007-08 to 2011-12. The table shows that the amount of

valuation surplus paid to Government has increased from Rs. 829.59 crore in 2007-08 to a high of Rs. 1281.23 crore in 2011-12.

The amount of valuation surplus paid to the Government moved between a low of 10.35% in 2010-11 and a high of 12.62% in

2011-12.

Table-3: 5% Valuation Surplus or Dividend paid to Government

Year Valuation Surplus Paid

(Rs in crore)

Annual Growth

(Per cent)

2007-08 829.59 -

2008-09 929.12 12.00

2009-10 1,030.92 10.96

2010-11 1,137.62 10.35

2011-12 1,281.23 12.62


TAXES PAID TO THE GOVERNMENT

The LIC in addition to the above pays huge amount of money to the government in the form of taxes, which the government uses

for nation building activities. Table-4 presents the taxes paid to the government for the period from 2007-08 to 2011-12. The table

shows that the taxes paid to the government have declined to Rs. 3348.48 crore in 2008-09 from Rs. 3510.45 crore in 2007-08.

After that the taxes paid to the government has increased year after year and stood at Rs. 4,424.78 crore in 2011-12. The annual

growth rate of taxes paid to the Government fluctuated between a low of (-) 4.61% in 2008-09 and a high of 11.37% in 2011-12.





Table–4: Taxes Paid to the Government (Life)

Year Taxes Paid to

Government

Annual Growth

(Per cent)

2007-08 3,510.45 -

2008-09 3,348.48 (-) 4.61

2009-10 3,625.29 8.27

2010-11 3,973.18 9.60

2011-12 4,424.78 11.37


SOCIAL INVESTMENTS

The LIC advances loans to State electricity boards, Housing finance societies, Municipalities, Zillaparishads, State road Transport

Corporation etc. These organizations in turn use the same for productive purposes. For instance, State electricity boards use the

funds for the generation of power while Zillaparishads use the loan funds for the supply of piped water in rural areas. Table-5

denotes the social investments made in various developmental activities. The table shows that the social investments made have

increased from Rs. 16,765 crore in 2007-08 to Rs. 21,775.57 crore in 2008-09. After that these investments have declined for two

years and stood at 15,235.94 crore in 2010-11. However, in 2011-12, these investments rose to a high of Rs. 27,398.10 crore. The

annual growth rate of these social investments fluctuated between a low of (-) 26.76% in 2010-11 and a high of 79.82% in 2011-

12.

Table-5: Social Investments of LIC

(Rs. in crore)

Year Social investments Annual Growth

(Percent)

2007-08 16,765.00 -

2008-09 21,775.57 29.89

2009-10 20,808.74 (-) 4.44

2010-11 15,235.94 (-) 26.76

2011-12 27,398.10 79.82


SOCIAL SECURITY SCHEMES

The LIC offers a number of social security schemes to uplift the poor and downtrodden. In this regard, it launched different

schemes like – Janashree Bima Yojana, Swarna Jayanthi Gram Swarojgar Yojana, Social Security Group Insurance Schemes,

Krishi Shramik Samajik Suraksha Yojana, Critical illness riders and Aam Admi Bima Yojana. Under these different schemes, as

many as 45 occupations were covered. The details of occupations and the number of new lives covered under each occupation

for the year 2011-12 is depicted in table-6.

Table-6: Statement of Lives Covered Under Social Security Group Schemes (Approved Occupations) during 2011-12

Sl. No. Occupations New lives (Under new and

existing schemes)

1 Beedi Workers 61

2 Brick klin Workers 0

3 Carpenters 0

4 Cobblers 0

5 Fishermen 7925

6 Hamals 396

7 Handicraft Artisans 195283

8 Handloom Weavers 168564

9 Handloom & Kahdi Weavers 135428

10 Lady Tailors 18

11 Leather & Tannery Workers 0

12 Papad workers attached to Sewa 55652

13 Physically handicapped self-employed persons 1

14 Primary Milk Producers 302759





15 Rickshaw pullers/ Auto drivers 116

16 Safai karmacharis 53

17 Salt growers 0

18 Tendu leaf collectors 331005

19 Scheme for the urban poor 1967109

20 Forest workers 51

21 Sericulture 0

22 Toddy tappers 0

23 Power loom workers 57779

24 Hilly area women 0

25 Food stuffs khandasari /sugar 0

26 Textile 6278

27 Wood products 0

28 Paper products 0

29 Leather products 0

30 Printing 0

31 Rubber & coal products 0

32 Candle products 0

33 Toys manufacture 0

34 Agriculturists 115612

35 Transport drivers association 3079

36 Transport karmacharis 1337

37 Rural poor 2742663

38 Construction workers 16611

39 Fire crackers workers 0

40 Coconut processors 0

41 Anganwadi teachers 0

42 Kotwal 0

43 Plantation workers 1556

44 Woman associated with self-help group 814464

45 Sheep breeders (KBPBY) 9639

All India total 6933439


JANASHREE BIMA YOJANA

The Janashree Bima Yojana (JBY) was launched in August 2000. The scheme has replaced Social Security Group Insurance

Scheme (SSGIS) and Rural Group Life Insurance Scheme (RGLIS). The scheme provides insurance protection to the rural and

urban poor who are below the poverty line or marginally above it. As many as 45 occupations are covered under this scheme.

As per the scheme, 50% of the premium is met out of Social Security Fund maintained by LIC and the balance 50% is borne by

members / Nodal Agency/ State Governments. The scheme provides for an insurance cover of Rs. 30,000 on natural death. In case

of death or total permanent disability (including loss of 2 eyes/ 2 limbs of use) due to accident, a sum of Rs. 75,000/- and in case

of partial permanent disability (loss of 1 eye/ 1 limb of use) due to accident, a sum of Rs. 37,500/- is payable to the nominee/

beneficiary. The scheme covered 220.56 lakh people at the end of March 2012.

SWARNAJAYANTI GRAM SWAROJGAR YOJANA

The scheme is designed under the Central Government’s Integrated Rural Development Program (IRDP) scheme where

beneficiaries are covered for a sum of Rs. 6,000/- payable on the death of the member and Rs 12,000/- in case of death due to

accidents. No premium is charged to the beneficiary.

SHIKSHA SAHAYOG YOJANA - 2001

The scheme was launched on 31.12.2001 with the objective of helping the parents in meeting the educational needs of their

children. It provides scholarships to the children of members of Janashree Bima Yojana who are studying between 9th and 12th

standards including ITI courses. Under this scheme, a scholarship amount of Rs. 600 per half year is payable to students for a

period of four years. During 2011-12, an amount of Rs. 176.24 crore was disbursed to as many as 20,90,972 beneficiaries.





AAM ADMI BIMA YOJANA

Aam Admi Bima Yojana, a new social security scheme for the benefit of rural landless poor was launched on 2nd October, 2007.

Under this scheme, the head of the family or one earning member in the family of rural landless household aged between 18 and

59 years is covered for an amount of Rs. 30,000. The premium payable of Rs. 200 per person per annum and it is shared equally

by the Central Government and the State Government concerned. In case of death or total disability due to accidents, a sum of Rs.

75,000 and in case of partial permanent disability due to accidents a sum of Rs. 37,500 is payable to the nominee or beneficiary. A

free add-on benefit is provided to the children of the members of this scheme. In this regard, a scholarship amount of Rs. 100 per

month is given to a maximum of two children studying between IX and XII standard. The scholarship is payable half yearly on 1st

July and 1st January each year. During 2011-12, scholarships worth Rs. 46.39 crore were disbursed to 4,44,750 children.

TOTAL LIVES COVERED UNDER SOCIAL SECURITY SCHEMES

The LIC makes continuous efforts to provide insurance cover to as many people as possible. For instance, the total number of

lives covered under various social security schemes rose from 2.35 crore in 2008-09 to 4.80 crore in 2011-12 and the percent of

change moved between a low of 2.13% in 2009-10 and a high of 66.77% in 2011-12. It shows that the LIC is committed to

provide insurance cover to more number of people. Table-7 presents the particulars.

Table-7: Social Security and Lives Covered

Year Total Number of Lives Covered Percent of Change

2008-09 2.35 -

2009-10 2.40 2.13

2010-11 2.57 7.08

2011-12 4.80 66.77


CONCLUSION

Corporate social responsibility is one of the prime focus areas of LIC. Its approach towards development of society is very

scientific and well thought out. The LIC has long regarded participation in social development as a wholehearted pre-occupation

that enriches the Corporation. It always goes beyond the traditional business to involve itself in projects that bring about

upliftment in the lives of the underprivileged and the deprived.

The LIC believes that the time and resources invested and professional expertise shared with the nation comes back to it in the

long- run in terms of expected dividends of reputation, opportunity and acceptance. The prediction is true, as it remained number

one in the life insurance market despite intense competition in the market. In all its endeavors, the LIC always ensures that the

benefits are passed on to the stakeholders. The LIC as mentioned earlier spends huge amount of money on social development.

However, it does not have proper feedback system to know the impact of its contribution on social development. In view of this,

the LIC need to evolve a proper feedback system to review its approach and developing new strategies.

REFERENCES

1. Hopkins, Michael. (1998). A planetary bargain: Corporate social responsibility comes of age. U. K.: Macmillan.

2. Brown, David. (2000). The accounting business: Managing corporate responsibility in practice. Corporate Social

Responsibility, Concepts and Cases. ICFAI Press.

3. Kumar, Dipak. (2002, September 09). The social security schemes provided by LIC. Yogakshema: 46(9), 57-58.

4. (2003, February 09). The Week.

5. Murthy, G. R. K. (2004, January). Why not post office administers it. Insurance Chronicle, (18).

6. (2005, May 11). The Times of India. Mumbai.

7. (2012, November 07). Most trusted brands 2012: Top 50 service brands. Economic Times.

8. (2007-08 to 2011-12). LIC of India (Annual reports).

9. (2007-08 to 2011-12). IRDA (Annual report).





10. (2013, December 15). Golden Jubilee Scholarship Scheme. LIC. Retrieved from

http://www.licindia.in/GJF_scholarship.htm

11. (2014, March). Implications of Companies Act, 2013 on Corporate Social Responsibility. Grant Thornton India LLP.

12. (2014, March 04). The flag off of CSR rules: India INC.’s to-do list for compliance to section-135. Forbes. Retrieved

fromhttp://forbesindia.com/blog/the-good-company/the-flag-off-of-csr-rules-india-inc-s-to-do-list-for-compliance-to-

section-135/

13. Retrieved from http://www.nhp.gov.in/insurance-schemes/national-health-insurance-schemes

14. Retrieved from http://financialservices.gov.in/insurance/gssois/aaby.asp

15. Retrieved from http://ghconline.nic.in/Judgment/CRLA1332009.pdf

16. Retrieved from http://lawprojectsforfree.blogspot.in/2010/09/company-law-analysis-of-paradox-behind.html

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18. Retrieved from http://projects.nri.org/nret/hopkins_csr.pdf

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21. Retrieved from http://www.readbag.com/licindia-in-images-annual-report

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http://www.licindia.in/GJF_scholarship.htm

http://forbesindia.com/blog/the-good-company/the-flag-off-of-csr-rules-india-inc-s-to-do-list-for-compliance-to-section-135/

http://forbesindia.com/blog/the-good-company/the-flag-off-of-csr-rules-india-inc-s-to-do-list-for-compliance-to-section-135/

http://www.nhp.gov.in/insurance-schemes/national-health-insurance-schemes

http://financialservices.gov.in/insurance/gssois/aaby.asp

http://ghconline.nic.in/Judgment/CRLA1332009.pdf

http://lawprojectsforfree.blogspot.in/2010/09/company-law-analysis-of-paradox-behind.html

http://mhcinternational.com/monthly-features/articles/112-what-if-any-is-the-relation-between-corpor

http://projects.nri.org/nret/hopkins_csr.pdf

http://www.archive.india.gov.in/sectors/commerce/insurance.php

http://www.nhp.gov.in/insurance-schemes/national-health-insurance-schemes

http://www.readbag.com/licindia-in-images-annual-report





AN ALGORITHM FOR DETECTION AND RECOGNITION

OF REGISTRATION NUMBER FOR INTELLIGENT CAR PARKING SYSTEM

Bhaskar Kumar21 Anshul Soni22 Rahul Jain23

ABSTRACT

This paper presents a robust algorithm for detecting standard number plate of vehicle, and for comparing it with a database for

secured parking systems. Based on template matching, this algorithm can be applied for real time recognition of number plates

for vehicle security or surveillance system through the gate of any organization. Algorithm also includes real time controlling

of Stepper motor and Liquid Crystal Display by MATLAB using UART protocol with AVR microcontroller for gate

controlling.

KEYWORDS

Segmentation, Template, Image Processing, Serial Communication, UART Protocol, LCD, Motor Driver, Stepper

Motor etc.

INTRODUCTION

It is almost known that the world is now a day is being more dependent in the computer than the human manpower. Most of the

work involving manpower and some about of technical thinking can be implemented by the computer control based automated

system, all this complicated, tedious and exhaustive work efficiently done by computer control system(automated system) more

efficiently with less percentage of error.. To add the further mile, this paper presents a Security System based on recognition of

number plate (SSRNP).

The current paper represents a system, which is designed to abstract the number plate of vehicles from its captured image and to

compare the abstracted number with the database already present in the computer memory. If the abstracted number is not present

in the database, then the main gate of the organization, which is controlled by stepper, motor, does not open. However, if the

abstracted number matches, LCD displays vehicle number and the gate will open.

This system is based on image processing through MATLAB (Matrix Laboratory, language for Image Processing and numerical

computing) and is designed for the purpose of security system along with full automation. It is also used for the further processes

like storing number plate in text format with reduced size, and stores the vehicle’s entry and exit date as well as time. The main

thing in this system is controlling of stepper motor and LCD directly by MATLAB using Universal Asynchronous Receiver

Transmitter (UART) via Advanced Virtual Reduced Instruction Set Computer (AVR) series of microcontroller.

In entrance gate of any parking lot, number plates are used to identify the vehicles. When a vehicle enters an entrance gate, the

number plate can automatically be recognized and stored in database. When a vehicle, which already entered into the parking lot,

later exits the place through the gate, number plate is recognized again and compared with the one stored in the database and it is

taken as a count. Automatic number plate recognition systems can be used in access control, for example, this technology is used

in many companies to grant access only to vehicles of authorized personnel.

The rest of the paper is organized as follows:

Figure I represent the block diagram of the processes;

Section II discusses the process involved before capturing any image;

Section III explains the algorithm for detecting the image of number plate from the whole image of the vehicle and surroundings;

Section IV explains the algorithm for detecting the image of individual alphanumeric characters from the image of number plate;

Section V shows how the image of individual character is recognized as a text,

Section VI simply matches those extracted number with the available database of company;

Section VII explains the process of connecting a computer to microcontroller through serial port and giving command to

microcontroller from MATLAB using UART protocol; and

Section VIII and IX explains the working of LCD and Stepper motor respectively according to command given by MATLAB.

Finally, experimental results are given and it is followed by conclusion, acknowledgement and references.

21Associate L1, Sapient Nitro Private Limited, Karnataka, India, [email protected] 22Software Engineer, NXP Semiconductors India Private Limited, Karnataka, India, [email protected] 23Software Engineer, Verizon Data Services Private Limited, Telangana, India, [email protected]








INPUT IMAGE

Whenever vehicle arrives in front of the gate, the computer

should know that, yes, it is the time to capture the image of

vehicle as stated in [4].

For this SAD (Sum of Absolute Difference) method is used,

i.e. whenever the sum of absolute difference gets higher than

motion threshold value, the camera will know that there is

large variation in video, that means vehicle has arrived in

front of it and it should capture the image after few seconds,

and store it for further process [5]. Sum of absolute

difference (SAD) is given in equation 1:

… (1)

Sum of Absolute Differences (SAD) is one of the simplest of

the similarity measures which is calculated by subtracting

pixels within a square neighborhood between the reference

image I1 and the target image I2 followed by the aggregation

of absolute differences. The algorithm of vehicle arrival

detection and capturing image is based authors’ previous

work.

Figure-1: Block Diagram of the System


EXTRACTION OF NUMBER PLATE FROM THE IMAGE

Paper represents a general approach for detection of the image of text and number plate in an image. Sobel operator and edge

detector techniques are proposed in [3] for vehicle’s number plate detection and localization. Edges in an image have been widely

used as an important criterion to detect and locate a vehicle’s license plate. Therefore, a framed number plate can easily be located

but create problem in frameless number plate. Without a good frame, it is difficult to form a proper rectangular for processing.

Similarly smearing algorithm is also not that much successful.

As described in reference [3], number plate detection becomes easy which is based on the concept of external regions, which are

arbitrary threshold-separable region. In the detection stage, it first independently detects all character and the longest linear spatial

configuration of these regions is labeled as text or number plate. The detection of Category Specific external Regions (CSER) can

be then arranged as three interleaved steps: (1) generate a new external region, (2) describe the region and (3) classify it. The

interleaved computation is schematically depicted [3].

The category of number plates is modeled as a linear constellation of CSER. Few information of rectangular number plate is

saved. The feed-forward neural network for CSER selection was experimented by a standard back-propagation algorithm on

approximately 1600 characters semi automatically segmented from about 250 images acquired in unconstrained conditions and

stated in [3]. The region descriptor was formed by scale-normalized algebraic moments of the characteristic function up to the

fourth order. Intentionally, user did not restrict the features to be either rotation or affine invariant and let the neural network with

15 hidden nodes to model feature variability. Counter examples were obtained by ten rounds of boot strapping. In each round, the

CSER detector processed the 250 experimental images and the false positives served as negative examples in the next round of

experiment [3].

The detection of license plates proceeds by in two steps. First, relevant CSER selected as described above. Second, linear

configurations of regions are found by Hough transform. Hough transform is the global process of edge linking and boundary

detection where parameter spaces are changed to find collinear points of line [5]. It imposes two constraints on the configurations:

the CSER regions must be formed from more than three regions and the regions involved must have a similar height.

SEGMENTATION

Before segmentation, it is necessary to convert the colored image of number plate into binary image, as it is easier to work with

binary image. For this, the intensity of colored image should be identified and then converted into gray image using proper

MATLAB command. Again, the threshold value gray image should be calculated so that it can be converted into binary image.

Crop out the exact portion of character, such that outer boundaries (useless portion) can be removed. In figure 2 the binary image

of number plate extracted from III and its filtered image is shown, which will go under the process of segmentation.





Figure-2(a): Binary Image of Number Plate, Which was extracted from the Captured Image


Figure-2(b): Cropped and Filtered Image of (a)


Segmentation divides the whole number plate into segments according to the number of lines and characters. In the segmentation

of plate characters, which are written in a single line, license plate is segmented into its constituent parts obtaining the characters

individually. Firstly, image is filtered for enhancing the image, and removing the noises and unwanted spots [5]. Median filter is

preferred, for reducing salt and pepper noise, as per authors’ experience.

Then morphological operation is applied to extract the connected components such that image of individual characters is obtain

[2][4]. Connected components labeling is used to uniquely determine the connectivity of character, for example can be 4-

connected or 8-connected. As explained in reference [5] let Y represents a connected component contained in a set A and assume

that a point p of Y is known. Then the following iterative expression i.e. equation 2 yields all the elements of Y and equation 3

shows dilation between two elements.

Xk = ( Xk-1⊕ B )∩ A k = 1,2,3,… … (2)

Xk-1⊕B = { z ∈E | (Bs)z ∩ Xk-1 ≠∅ } … (3)

Where Xo = p, and B is suitable structuring elements. Iterate through each elements of the figure by column, then by row. If

element is not the background, label the element with lowest equivalent label.

After this operation, horizontal and vertical clipping should be done for finding the character regions only, which mean no extra

blank pixel in image.

Figure-3: Image of Individual Characters after Segmentation


In several cases there are number plates having characters written in two lines and so invert the image, so that intensity pixels

changes from 0 to 255 and vice versa. From the starting of first horizontal line to last, calculate whether the sum of intensity of all

horizontal pixels in that line is zero or not. Then crop the image from first horizontal line to the line where sum gets zero.

Similarly, next line can also be cropped and joined aside with previous one and the result so obtained is shown in the figure 4.

Figure-4(a): Binary Image of a Number Plate that Figure-4(b): Image of individual Character

have Character in two Lines after Segmentation






TEMPLATE MATCHING

Template matching is a pattern classification method that detects particular features in a character image using operators called

templates. A template is devised, for example [1], a set of standard image of alphabets and collected from real vehicle images.

Despite the good enhancement of normalized character images, many sources of potential noise and distortion could be existed. In

addition, it is impossible to make exact matching to a prototype and to process direct template matching. Therefore, in case of

confusion, it goes for further matching. As such, the similarities are measured using a template and a correlation value is obtained.

Before recognition algorithm, the characters are first normalized. Normalization is a process that refines the image of characters

into a block containing no extra white spaces (pixels) in all the four sides of the characters. For Template matching, it is necessary

to have the two images i.e. the image obtained from number plate and the template image should be of equal size. So, every

resulted image should be resized to the size of templates.

Figure-5 Templates (a): Numbers


Figure-5 Templates (b): English alphabets


Two types of templates should be prepared (1) Standard alphabets as shown in the figure 5, (2) Alphabets collected from real

images of vehicles, which are stored in sub templates of their respective characters.

The next step is template matching through correlation. Template matching is an effective algorithm for recognition of characters

and correlation is a process to reconcile sub image (mask) with the image. At the process, an image f(x,y) or f(s,t) will be

correlated with a sub image w(x,y) and thus find the value of correlation between them. The highest correlation value corresponds

the position of the object in image which satisfies the sub image w(x,y) [5]. Mathematically, a correlated image is defined in

equation 4.

f(x,y) ° w(x,y) F(u,v)H * (u,v) … (4)

Alternatively, can be defined as an inverse Fourier transform by multiplying the transformation with its conjugate, as given in

equation 5.

F(x,y) * w(x,y) F(u,v) ° H(u,v) … (5)

The correlation coefficient is given in equation 6.

… (6)

The character image is compared with the ones in the template and the best similarity is measured. The point of maximal

similarity i.e. maximum correlation value between the image and template gives the result. If the difference between maximum

correlation and second maximum correlation value is greater than a certain threshold value, than the image, which gave maximum

value, is considered as a result. However, if difference is not greater than that threshold value, then again correlation will be

performed with the sub templates of those two images to get result.





Figure-6: Number Plate Segmented Image is Correlated with the

Template and Maximum Correlation Value Gives Result


Next step is to store the result i.e. extracted number in text format with date and time in a text file.

MATCHING

Compare extracted number with the numbers in the database. As given system is for security system, so every number extracted

from vehicle is compared with the previously stored number in database. If extracted number is matched then system allows the

vehicle to pass through the gate. In addition, in case of unmatched condition, it will not allow vehicle to pass, and vehicle has to

return back so that another vehicle can come.

INTERFACING MATLAB AND MICROCONTROLLER USING SERIAL PORT

USB to Serial interface cables often have two components: a USB transceiver that outputs serial data; and a voltage shifter to

produce standards-compliant RS-232 voltages. It is often possible to throw away the USB part of these cables, connect an external

5V power source (or abuse the RS-232 interface) to replace the power coming from the USB bus and to just use the RS-232 level-

shifter. All this is probably as much work as using a MAX-232. Many USB transceiver chips can be integrated directly into

circuits, eliminating the need for voltage-shifting components [7].

Figure-7 illustrates a basic UART data packet [7]. While no data is being transmitted, logic 1 must be placed in the transmitter

line. A data packet is composed of 1 start bit, which is always a logic 0, followed by a programmable number of data bits

(typically between 6 to 8), an optional parity bit, and a programmable number of stop bits (typically 1). The stop bit must always

be logic 1. Most UART uses 8bits for data, no parity and 1 stop bit. Thus, it takes 10 bits to transmit a byte of data.

Figure-7: Basic UART packet format: 1 start bit, 8 data bits, 1 parity bit, 1 stop bit


BAUD Rate: This parameter specifies the desired baud rate (bits per second) of the UART. Most typical standard baud rates are:

300, 1200, 2400, 9600, 19200, etc. [7]

In the UART protocol, the transmitter and the receiver do not share a clock signal. Due to this reason, the protocol is said to be

asynchronous. Since no common clock is shared, a known data transfer rate (baud rate) must be agreed upon prior to data

transmission [7]. The transmitter shifts out the data starting with the LSB first.

Once the baud rate has been established (prior to initial communication), both the transmitter and the receiver’s internal clock is

set to the same frequency (though not the same phase). This allows the receiver to sample the data bit at the bit-cell center as

shown in the figure 8. UART controller runs its internal clock at 16 times the baud rate [7]. This allows the UART receiver to

sample the incoming data with granularity of 1/16 the baud-rate period. This "oversampling" is critical since the receiver adds

about 2 clock-ticks in the input data synchronizer uncertainty. The receiver detects the start bit by detecting the transition from

logic 1 to logic 0 (note that while the data line is idle, the logic level is high). In the case of 16450 UART, once the start-bit is

detected, the next data bit’s "centre" can be assured to be 24 ticks minus 2 (worse case synchronizer uncertainty) later. From then

on, every next data bit centre is 16 clock ticks later. Figure 8 (from [7]) illustrates this point. Error condition maybe generated if

the parity/stop bits are incorrect or missing.





Figure-8: Data Sampling Points by the UART receiver


LCD INTERFACING WITH MICROCONTROLLER

Firstly, LCD has to be initialized either by the internal reset circuit or sending set of commands to initialize the LCD. It is upon

user to decide whether an LCD has to be initialized by instructions or by internal reset circuit. Now, it is required to interface an

LCD with microcontroller to display messages, outputs, etc.

Sometimes using an LCD becomes almost inevitable for debugging and calibrating the sensors. Therefore, it is better to use the

16x2 matrix LCD [7].

INTERFACING STEPPER MOTOR WITH MICROCONTROLLER USING MOTOR DRIVER

In parking, lot entrance gate rotate itself with 90° from horizontal position to vertical position. Therefore, for gate mechanism,

stepper motor or servomotor is well suited. However, stepper motor is preferred over servomotor because stepper motor is cheaper

and consumes less power than that of servomotor. DC motor is not preferred because it not possible to rotate DC motor with

exactly 90° [6].

L298N is an integrated circuit (IC) of Motor Driver. It is a high voltage, high current dual full-bridge driver designed to accept

standard TTL logic levels and drive inductive loads such as relays, solenoids, DC and stepping motors. Two enable inputs are

provided to enable or disable the device independently of the input signals. An additional supply input is provided so that the logic

works at a lower voltage [6].

Stepper motors can be driven in two different patterns or sequences namely, Full Step Sequence and Half Step Sequence.

In the full step sequence, two coils are energized at the same time and motor shaft rotates. The order in which coils has to be

energized is given in the table-1.

Table-1: Full Mode Sequence

STEP A B A\ B\

0 1 1 0 0

1 0 1 1 0

2 0 0 1 1

3 1 0 0 1


In Half mode step sequence, motor step angle reduces to half the angle in full mode. So the angular resolution is also increased i.e.

it becomes double the angular resolution in full mode. Also in half mode sequence, the number of steps is doubled as that of full

mode. Half mode is usually preferred over full mode. Table 2 shows the pattern of energizing the coils.





Table-2: Half Mode Sequence

STEP A B A\ B\

0 1 1 0 0

1 0 1 0 0

2 0 1 1 1

3 0 0 1 1

4 0 0 1 1

5 0 0 0 1

6 1 0 0 1

7 1 0 0 0


Any of the modes can be used in this system. The programming of stepper motor and LCD can be flashed into microcontroller

through any of the programming software like Code Vision AVR. Using programmer, the hex file so generated can be transferred

to microcontroller. The stator of a variable-reluctance stepper motor has a magnetic core constructed with a stack of steel

laminations. The rotor is made of non-magnetized soft steel with teeth and slots. The relationship among step angle, rotor teeth,

and stator teeth is expressed using the equation 7.

… (7)

Where Ψ = step angle in degrees

Ns = Number of teeth on stator core

Nr = Number of teeth on rotor core

EXPERIMENTAL RESULTS

The proposed Security System based on Recognition of Number Plate (SSRNP) has been tested using collections of vehicles at a

gateway of a parking lot with various camera angle views. The SSRNP system was researched using software designed in

MATLAB 2012a. During the experiments, for capturing images of vehicle, Fuji MX - 1700 digital camera with resolution of 640

x 480 grayscale pixels connected to the computer through USB port. Such camera allows transferring 25 frames per second.

Stepper Motor (12V, 1A, 7.5 degree precision) was used as a gate controller and 16X2 LCD was used to display. AVR

microcontroller ATmega 32A was used for controlling above motor and LCD. For connecting processing unit i.e. Computer to

microcontroller, RS-232 (USB to serial) was used and MAX-232 i.e. level converter was used as intermediate. The baud rate was

set as 600 symbols per second.

The processed image of one of the vehicle, during experiments, is shown in Figure 9. It shows all the process involved related to

MATLAB (image processing). It automatically detected the arriving of vehicle in front of gate, so, no need to keep any security

guard at the gate. At every 15 frame sum of absolute difference was calculated [5]. Camera captured the image of whole vehicle

and nearby surrounding, as the number plate can be at anywhere in the vehicle. It did not focus on a particular position as shown

in the figure 9 (a). The number plate of vehicle was recognized, as discussed in section III and shown in the figure 9 (b). Finally,

the segmented image of number plate i.e. image of individual character is shown in the figure 9 (c). From standard template, the

characters H, R, N and 8 were easily recognized and for the characters 0, 1 and 5, it used sub templates for further matching. In a

way the whole alphanumeric characters of number plate were recognized, i.e. HR01N5855. Now, this number was matched with

database for security purpose. At the time of execution of the process, it simply stored the date and time with the number of

vehicle in a text file for future reference.

Figure-9: (a) Captured Image of Vehicle (b) Image of Number Plate (c) Image of Individual Characters

(d) Vehicle’s Number in text with Captured Date and Time

(a)





(b)

(c)

(d)

Date & Time:-08-Dec-2012 & 17:05:38

Number Plate:-HR01N5855

The number of this particular vehicle was present in the pre-stored database. Therefore, the vehicle was allowed to get inside the

parking lot. Consequently, the gate opened along with a display of “WELCOME” followed by “number of vehicle” on the LCD.

The block diagram of the whole process is shown in figure 10.

Figure-10: Block Diagram for Gate Mechanism


From these experiments, even though the brightness of the license plate was very low or the license plate was kept at angle with

maximum 45°, the license plate was successfully recognized. Even if a part of character image was noised in either dust or fog; or

in night if the head light of vehicle was on, it will be still correctly recognized.

CONCLUSION

In this paper, algorithm for secured parking system is represented, which includes real time number plate recognition and

controlling of gate. This proposed system can be applicable to traffic monitoring, automatic highway or parking toll collection, car

parking management, stolen vehicle detection, etc. The purpose of this paper is to represent the overall algorithm for automated

secured parking, which can be installed in small as well as big firm without investing large amount on it.

REFERENCES

1. Mi-Ae Ko, Young-Mo Kim. (April, 03). License plate surveillance system using weighted template matching.In

Proceedings of the 32nd applied imaginary pattern recognition workshop.

2. Haris Al-Qodri Maarif, & Sar Sardy. (2006). Plate Number Recognition by Using Artificial Neural Network. Prosiding

Semiloka Teknologi Simulasi dan Komputasi setra Aplikasi.

3. Jiri Matas, & Karel Zimmermann. Unconstrained license plate and text localization and recognition. Czech Technical

University Prague, CMP.





4. Lorita, Angeline, Wei, Leong Khong, Farrah Wong, Ismail Saad, & Kenneth, Tze Kin Teo. (2011). Multiple vehicles’

license plate tracking and recognition via isotropic dilation; 24. doi 10.1109 / CICSyN.

5. Rafel, C. Gonzalez, & Richard, Woods E. Digital image processing (3rd Ed.), pp. 141, 145, 146, 252-265, 558-560,

607-633; 720-726. PHI.

6. ST Microelectronics. (2000). Dual full-bridge driver [Datasheet].

7. Narang, Punit, Gulati, Manoj, Sankule, Saurabh. (2011, June). Advanced Embedded Systems, pp. 6-20; 36; 45-49; 60-

64; 66-69. IIT Kanpur.

8. Retreived from http://www.8051projects.net/stepper-motor-interfacing/step-sequence.php

9. Retreived from http://en.wikibooks.org/wiki/Serial_Programming/MAX232_Driver_Receiver

10. Retreived from http://siddhantahuja.wordpress.com/2010/04/11/correlation-based-similarity-measures-summary

11. Retreived from http://siddhantahuja.wordpress.com/tag/normalized-cross-correlation

12. Retreived from http://www.8051projects.net/lcd-interfacing/initialization.php

13. Retreived from http://www.8051projects.net/stepper-motor-interfacing/step-sequence.php

14. Retreived from http://www.geeetech.com/wiki/index.php/L298N_Motor_Driver_Board

*****

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http://www.8051projects.net/stepper-motor-interfacing/step-sequence.php

http://en.wikibooks.org/wiki/Serial_Programming/MAX232_Driver_Receiver

http://siddhantahuja.wordpress.com/2010/04/11/correlation-based-similarity-measures-summary

http://siddhantahuja.wordpress.com/tag/normalized-cross-correlation

http://www.8051projects.net/lcd-interfacing/initialization.php

http://www.8051projects.net/stepper-motor-interfacing/step-sequence.php

http://www.geeetech.com/wiki/index.php/L298N_Motor_Driver_Board






ROLE OF TRADE PROMOTION ORGANIZATIONS IN PROMOTING EXPORTS

FROM INDIA WITH SPECIFIC REFERENCE TO PHARMEXCIL

(PHARMACEUTICALS EXPORT PROMOTION COUNCIL)

Dr. Sanjeev Chaturvedi24 Alka25

ABSTRACT

This Research paper analyzes the role of trade promotion Organization especially Pharmexcil in promoting export from India.

Pharmexcil was formed in 2004 to promote export of Pharmaceuticals products from India. This paper analyze the growth in

pharma exports after formation of the council and also analyze the strategies adopted by the Council to further increase the

export of Pharmaceutical Products from India.

KEYWORDS

Trade Promotion, Exports, Pharmaceutical Products, Pharmexcil etc.

INTRODUCTION

In today’ globalized world countries cannot survive by being self-reliant. For overall growth of any economy the trade should take

place and thus it is very important that each country should identify the areas in they have core competency and should engage in

trade with other economies for optimum utilization of resources available worldwide. To ensure that such areas / sectors are

provided necessary guidance and direction for export promotion, Trade Promotion Organizations (TPO) plays a very important

role. In India, also there are many trade promotion organizations specifically set up to promote export from the country. These

TPOs are either sector specific like all the Export Promotion Councils, or general like FIEO, FICCI, and CII etc.

The first Export Promotion Council set up Department of Commerce was Engineering Export Promotion Council, which was

constituted back in 1955-56 when the nascent Indian engineering sector was in the process of diversifying and restructuring the

narrow export base of the industry and it needed a strong push. The Council successfully achieved its goal and today Engineering

Products are among the top five items of export from India. Many other councils were successively set up by the Ministry of

Commerce to promote export of products that have lot of potential for export from India.

On the similar lines, Pharmexcil (Pharmaceuticals Export Promotion Council) was set up in the year 2004 for export of

Pharmaceutical Products in India. Prior to those Pharmaceutical products were under the purview of Chemicals Export Promotion

Council. Pharmaceutical Products has lot of potential for export from the country but proper guidance was lacking in this director,

therefore Ministry of Commerce decided to form Pharmexcil, which could help the pharmaceutical companies in exploring the

overseas market.

OVERVIEW OF THE PHARMACEUTICAL INDUSTRY IN INDIA

The Indian pharmaceutical industry can be said to have begun with the setting up of ‘Bengal Chemical and Pharmaceutical

Works’ in Calcutta. Subsequently institutes like Kings Institute of Preventive Medicine in Chennai, Pasteur Institute in Coonoor,

the Central Drug Research Institute in Kasauli and others were set up. Post-independence, many other public sector companies

such as Hindustan Antibiotics Ltd. and Indian Drugs and Pharmaceuticals Ltd. were set up to reduce the imports of important

antibiotics and also to meet the county’s demand from indigenous production

The industry is conspicuous by the large presence of private sector, which has captured a substantial share in the domestic &

external market due to factors such as conducive regulatory environment, past patent policies, low cost of innovation, access to

funds from banks to corporate manufacturers, low cost of setting up and running high technology manufacturing facilities, etc.

The public sector as in many other sectors contributed to strategic areas but has gradually been overtaken by the private players.

The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in

the complex field of drug manufacturing and technology. It ranks very high in the third world, in terms of technology, quality and

range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds,

almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital

field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA

and UK.

24Vice Chancellor, Shri Venketeshwara University, India, [email protected] 25Research Scholar, Department of Management, Mewar University, India, [email protected]







The Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020 from US$ 12.6 billion in 2009. This was stated in

a report title "India Pharma 2020: Propelling access and acceptance, realizing true potential" by McKinsey & Company. In the

same report, it was also mentioned that in an aggressive growth scenario, the pharma market has the further potential to reach US$

70 billion by 2020

CHARACTERISTICS OF INDIAN PHARMACEUTICAL INDUSTRY

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the

last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of

the market share. It is an extremely fragmented market with severe price competition and government price control.

The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates,

pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. There are about 250 large units and about 8000

Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These

units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350

bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations.

Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products

has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority.

Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low R&D costs,

innovative scientific manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical Industry,

with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take on

the international market.

India is currently recognized as a high quality, low-cost skilled producer of pharmaceuticals. It is seen not only as a manufacturing

base for APIs and formulations, but also as an emerging hub for biotechnology, bioinformatics, contract research, clinical data

management and clinical trials. The country’s pharmaceutical industry, as evidenced in the paragraphs, which follow, has shown

tremendous progress in terms of infrastructure development, technology base creation and a wide range of production.

India exports full basket of pharmaceutical products comprising intermediates, APIs, Finished Dosage Combinations (FDCs),

biopharmaceuticals, vaccines, clinical services, etc., to various parts of the world. The country has achieved the distinction of

providing healthcare at very low cost while maintaining profitability.

At present, India is among the top 20 pharmaceutical exporters world-wide and with the largest number of US FDA inspected

plants (119 plants), outside the USA. Various other agencies like MHRA UK, MCA South Africa, TGA Australia, HPB Canada

have approved scores of plants in India.

EXPORT OF PHARMACEUTICAL PRODUCTS

Indian Pharmaceutical Industry has made phenomenal progress over the years and made its impact in the global market. Indian

Pharmaceutical industry has been recognized as reliable source for drugs and drug intermediates, pharmaceutical formulations.

Tremendous opportunities are available for Indian Pharma industry in post 2005 era to manufacture and export many products

getting off-patented. Its immense strength in manufacturing quality medicines at affordable prices made the Indian Pharma

industry to compete both in regulated and non-regulated markets.

India's exports of drugs, pharmaceutical and fine chemicals grew by 27 per cent to Rs 60,000 crore (US$ 10.85 billion) for the

year ended March 2012, according to data compiled by Pharmaceutical Exports Council of India (Pharmexcil). Moreover, the size

of the Indian formulations market, which currently stands at around Rs 62,000 crore (US$ 11.21 billion), is growing at 15-20 per

cent annually.

Apart from its strengths in manufacturing and exporting allopathic medicines, India is known for its own systems of medicines

with about 7000 units manufacturing various Indian system of medicines viz., Ayurveda, Unani, Siddha, Homeopathy etc. Though

strong in cultivation/manufacture of Indian system of medicines, India’s share in the global herbal market, estimated at US$ 63

billion, is less than 0.2%, which shows that there is a tremendous scope for export market.

India Pharma Industry is poised to grow and will witness largest number of merger and acquisitions (M&As) in the

pharmaceutical and healthcare sector, according to consulting firm Grant Thornton. A survey conducted across 100 companies has

revealed that one-fourth of the respondents were optimistic about acquisitions in the pharmaceutical sector.

The cumulative drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth US$ 9,596 million between

April 2000 to May 2012, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).





Fast growing Biotech industry estimated at about US$ 2 billion market, is a another part of Indian Pharma industry in India, which

has great potential in the international market and which needs focused attention to improve its performance in the international

market.

India can achieve significant revenue streams from exports by becoming a global centre for Pharmaceutical Generics, APIs and

Innovative Formulations, an emerging New Chemical Entities (NCE) hub, service management centre for Multinational

Pharmaceutical Companies (MPCs) such as, contract research/ custom synthesis, clinical trials, bioequivalence studies, biological

studies, data management, etc. (refer Appendix V on comparative advantage of Indian pharmaceutical exports).

The main opportunities for the Indian pharmaceutical industry are in the areas of:

Generics/ Bio pharmaceutical generics

Contract manufacturing services for MPCs

Contract R&D services like custom synthesis, clinical trials, clinical data management, bioequivalence testing, Stability

testing, chemistry and biology services.

KEY FEATURES OF THE INDIAN PHARMACEUTICAL INDUSTRY

Produces 70% APIs, almost the entire requirement of formulations within the country,

Ranks 4th in the world, accounting 8% of world production by volume and 2% by value,

Very strong in Indian medicine systems of Ayurvedic, Homoepathy, Unani, Siddha and Herbals medicines,

Fast growing Biotech industry with US$ 2 billion market,

Low cost of production,

Low R&D costs,

Abundant scientific and technical manpower,

Strong intellectual capital,

Excellent world-calls national laboratories, specialized in development processes and cost effective technologies,

An efficient and cost effective source for procuring generic drugs, especially the drugs going off patent in the next few

years,

An excellent center for clinical trials,

USFDA/WHO complying manufacturing facilities,

15% of Indian Pharmaceutical scientists are in USA, hence good network.

THE COUNCIL

Considering the dynamic growth of Indian Pharma Industry, a knowledge based industry, and on the recommendations of four

major Pharma associations, Ministry of Commerce & Industry realized the need for separate export promotion council for export

of these products. Accordingly, Pharmaceuticals Export Promotion Council (PHARMEXCIL) was formed 12th May 2004.

Pharmexcil today is the authorized agency of the government of India for promotion of pharmaceutical exports from India.

Various pharmaceutical products, namely, bulk drugs, formulations, Biotech Products, Indian Systems of medicines, herbal

products, diagnostics, clinical research, etc. are covered under its purview. Pharmexcil takes up several external trade promotion

activities by organizing trade delegations outside India, arranging buyer-seller meetings, international seminars, etc. to ensure

awareness about the Indian Pharma Industry in the overseas market. Since its inception, Pharmexcil has contributed significantly

in promoting export of Pharma products from the country despite all the constraints in the domestic as well as the international

market (Table 2) The Pharma Industry had grown manifold since the inception of Pharmexcil in 2005.

Table-1

Year Exports of Drugs, Pharmaceuticals & Fine Chemicals Exports Growth Rate

2002-03 12,826 -

2003-04 15,213 18.61

2004-05 17,228 13.25

2005-06 21,230 23.23

2006-07 25,666 20.89

2007-08 29,354 14.37

2008-09 39,821 35.66

2009-10 42,456 6.62

2010-11 47,551 12.00

Note: DGCIS, Kolkata






THE ROLE OF COUNCIL

Looking at the vast potential for Pharmaceutical products in the international market, and to achieve its objective to promote

pharmaceutical products in the international market, Pharmexcil is entrusted with the following tasks to achieve the objectives:

Issue of RCMC,

Organizing Trade delegations/Buyer-Seller Meetings abroad,

Organizing Reverse Buyer-Seller Meetings in India,

Assisting members to get their MDA/MAI claims refunded from Govt. of India,

Issue of Certificate of Origin,

Organizing periodical Seminars/Interactive meetings on exports related issues,

Make suggestions to Government of India on policy issues relating to Pharma exports,

Make representations to Government of India and other agencies in India and abroad to get amicable solutions for the

common problems of the industry.

The council is currently focusing in the following areas to achieve the above-mentioned objectives:

Identifying the right product-mix for sustained future growth.

Help companies capitalize on the opportunities when many drugs will go off patent,

Providing necessary assistance to the biotechnology firms to explore the opportunities in the global market,

Assist companies in effectively exploring the foreign market by providing them the required guideline to overcome the

regulatory hurdles.

Some of the initiatives undertaken by Pharmexcil to promote export of Pharma products from India in 2011-12 are listed in

Annexure 1.

BRAND INDIA PHARMA CAMPAIGN

Pharmexcil also launched Brand India Pharma Campaign to live up to the challenges of increasing market share in existing and

new markets and countering the negative publicity in some countries by vested interests, Pharmexcil launched Brand India

Pharma Campaign under the guidance of Department of Commerce, Govt. of India. IBEF is assisting (branding aspects)

Pharmexcil in this Endeavour.

The key objectives are:

To raise the awareness of Indian Pharma success story.

To create awareness that Indian generics are not counterfeits and they are bonafide medicines of standard quality.

To improve the credibility of Indian Pharma industry.

To protect it from dubious allegations by vested interests.

To position India as global pharmacy of world.

To increase business on a sustainable basis & take it to the next orbit.

To highlight the growth drivers-government support & regulatory framework, cost efficiencies, technical capabilities.

Brand India Pharma Campaign has been launched in the following countries:

JAPAN during 21st – 23rd March 2012 in Tokyo, Japan.

Indonesia during 10 - 12th May 2012 in Jakarta, Indonesia.

Spain during 9 - 11thOctober 2012 in Madrid, Spain.

IPHEX: SHOWCASING INDIAN PRODUCTS FOR THE GLOBAL MARKET

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) took a major initiative for global showcasing of Indian

pharma products through its Annual International exhibition iPHEX. iPHEX was started in 2013 and the first exhibition was

attended by over 500 overseas delegates from 104 countries. India’s own pharmaceutical show under the support of Ministry of

Commerce & Industry, Department of Commerce, and Government of India. iPHEX 2013 was being held in Mumbai from April

24-26, 2013.

IPHEX 2013 had over 250 stalls exhibiting Indian pharma companies like Ranbaxy, Lupin, Glenmark, Mylan, MSN Labs, Ipca,

Ind-Swift, Strides, Aurobindo, Mankind, to mention a few. About 60 per cent of stalls belonged to SMEs, which present a very

robust, competent and competitive Indian pharma sector. Over 5000 trade visitors including overseas buyers, delegates from





highly regulated markets like US, Europe, Australia, New Zealand etc attended the event. The overseas buyers were invited with

the support of Ministry of Commerce and Industry Government of India and the exhibition resulted in huge business opportunities

for the Indian companies. Over 40 senior regulatory officials from 20 countries like Ghana, Tanzania, Senegal, Taiwan, Vietnam,

Philippine, Egypt, Nigeria, Cuba, Sri Lanka, Zimbabwe, etc., were present during the event. The presence of large number of drug

regulators from overseas market is expected to immensely help Pharmexcil and its members to promote the quality and

affordability aspect as envisaged in Brand India Pharma Campaign.

iPHEX is slightly different from other international events held in India. In iPHEX, the Council planned one-to-one meeting

between the Indian exporter and overseas buyers, technical conferences were also part of the event, where the invited drug

regulators made presentations about drug regulatory procedures in their respective countries, for the benefit of the Indian pharma

industry

PHARMEXCIL: ROAD AHEAD

Considering the vast potential, which this industry holds, the Council has plans to provide services to its members so that they are

well equipped to grab the opportunities available in the market. The Council is also planning to work in the following areas:

A. Creation of Functional Desks

Functional desks should be created under Pharmexcil to assist industry and regulatory agencies in the following areas:

Legal: Help Indian pharmaceutical organizations to understand intricacies in international contracts for international

sale of goods, agency/distributor agreements, JVs, Technical tie-ups, legal environments of various countries, dos and

don’ts with respect to obligations etc., Develop standard agreements/templates and keep in export council library, which

can be used by members.

Marketing: Help organizations to obtain international marketing knowledge. Develop information base on each country

with respect to the structure of the market, environment, SWOT analysis, registration requirements, etc. Collect

experiences on countries through active interface with industry and institutionalize the information.

Learning and Development (L&D): Providing L&D in marketing areas especially distribution, pricing, packaging,

promotion, etc., knowledge about market environment in relevant countries to members.

B. Intellectual Property

The IPR cell should take the following activities:

Help organizations in API process development and formulation development.

Provide Learning & Development in IPR areas. Develop an information base of case laws related to IPR issues. Develop

a learning module by experts for members to appreciate the intricacies in developing and defending non-infringing

processes and invalidation of patents.

Confidential evaluation of non-infringing processes and suggestions to build non-infringing processes for medium and

small enterprises.

Aggressive training programs in IPR with international experts to facilitate L&D are required in:

Developing innovative process patents

Drafting intelligent patents

Training people in international patent laws and regulatory affairs laws Analyzing Legal case studies, etc.

C. Regulatory Research Desk

The role of the regulatory research desk should encompass:

Helping organizations in understanding regulatory procedures of various countries.





Developing useful information base on regulatory requirements, guidelines, and facilitate learning modules to

understand the process of registration and understanding intricate issues involved in drug registrations.

E. Advisory Services Centre

Providing guidance and inputs to financial institutions with respect to R&D. The main function is to encourage venture capital

based funding in the areas of DMFs/ANDAs/innovative formulations/NCE building blocks such as contract research hubs; large

testing centers, bioequivalence centers, data management centers on a risk and reward-sharing basis and patent filing fund which

gives partial funding on profit sharing basis. Exim bank along with export promotion council can work on these strategies.

The above cells, desks may also develop information databases in the following key areas:

Legal information base with standard templates to help members.

Marketing information base with good information on various countries, market potential, marketing environment, etc.

IPR information base.

Regulatory information base with good collection of all regulatory guidelines for various product classes, facilities in

various countries.

ROAD AHEAD

Pharmaceutical industry can help India transform itself into a knowledge driven economy with firm routes in science and intricate

knowledge of production and manufacturing engineering. The industry has risen in its importance from a sector to an important

part of development process. The country has to look at pharmaceutical sector as a strategic & flagship industry. The Current

success is due to amalgamation of R&D (developing non-infringing processes and reverse engineering), manufacturing excellence

(designing and running world-class facilities with economies of scale), globalisation ability (establishing presence/ acquisitions/

mergers in the international markets). Such multidimensional excellence will make Pharma the torch bearer of the nation paying

way for R&D led global market leadership in various goods and services.

Pharmexcil and other related Trade Promotion Organizations along with Government of India needs to more proactively nurture

this sector by addressing the missing links and strengthening the policy environment to encourage industry to find its rightful

place sooner than later.

REFERENCES

1. Express Pharma. (15th January 2012), “Changing role of pharmacists: Indian scenario”, Available at

www.expresspharmaonline.com/20120115/pharmalife01.shtml

2. Intelligence Applied. Global Pharmaceutical Sales by Region 2007, Available at

http://www.imshealth.com/deployedfiles/imshealth/Global/Content/StaticFile/Top_Line_Data/GlobalSalesbyRegion.pdf

3. MsKinsey & Company. “India Pharma 2020: Propelling access and acceptance, realizing true potential”, Available at

http://www.mckinsey.com/locations/india/mckinseyonindia/pdf/India_Pharma_2020.pdf

4. Corporate Catalyst India. (March 2012). A brief Report on Pharmaceutical Industry in India, Available at

http://www.cci.in/pdf/surveys_reports/indian-pharmaceuticals-industry.pdf

5. Pharmaceutical and Drug Manufacturers, Indian Pharmaceutical Industry-Overview, Available at

http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

6. Pharmexcil, About us, The Industry, Available at

http://pharmexcil.org/index.php?option=com_content&view=article&id=12&Itemid=31

7. Economy Watch. Pharmaceutical Industry Research, Available at,

http://www.economywatch.com/world-industries/pharmaceutical/research.html

8. FICCI-BISNET, Industry and Services. Available at: http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-

sectors/drug-pharma.htm

9. Report of the Task Force, Ministry of Commerce & Industry (12th December 12, 2008). Available at

http://commerce.nic.in/publications/Report%20Tas%20Force%20Pharma%2012th%20Dec%2008.pdf?id=16

http://www.expresspharmaonline.com/20120115/pharmalife01.shtml

http://www.imshealth.com/deployedfiles/imshealth/Global/Content/StaticFile/Top_Line_Data/GlobalSalesbyRegion.pdf

http://www.mckinsey.com/locations/india/mckinseyonindia/pdf/India_Pharma_2020.pdf


http://www.economywatch.com/world-industries/pharmaceutical/research.html

http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/drug-pharma.htm


http://commerce.nic.in/publications/Report%20Tas%20Force%20Pharma%2012th%20Dec%2008.pdf?id=16





10. Pharmexcil, About us, The Industry, Available at


11. Pharmexcil. “Overview of Pharmaceutical industry”, Available at: http://pharmexcil.com/v1/Docs/Ipc.pdf

12. FICCI, Pharmaceuticals. Available at:


13. Indian Pharmaceutical Industry. Available at:

http://www.pharmaceutical-drug-manufacturers.com/articles/top-10-pharmaceutical-companies-in-india.html

14. “Strategy Paper for Doubling India’s Exports in the next three years (2011-12 to 2013-14)”; Department of Commerce;

http://commerce.nic.in/ann/StrategyPaper.pdf

15. Indian Pharmaceutical Industry. Available at http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

16. Indian Pharmaceutical Industry. Surging Globally, Export Import Bank of India, Available at

http://www.eximbankindia.com/op/oplast.pdf

17. Indian Pharmaceutical Industry. Planning Commission. Available at:

http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_pharma2902.pdf

18. Corporate Catalyst India. India’s Pharmaceuticals Industry. Available at

http://www.cci.in/pdf/surveys_reports/indias_pharmaceutical_industry.pdf

19. MoneyWorks4me. “Indian Pharmaceutical Sector – Shifting from a defensive to a growth sector”. Available at:

http://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/

20. Overview of the Indian Pharmaceutical Industry, D&B, Available at: http://www.dnb.co.in/pharmaceutical/overview.asp

ANNEXURE-1

INITIATIVES BY PHARMEXCIL FOR PROMOTION

OF PHARMACEUTICAL PRODUCTS FROM INDIA IN 2011-12

BSMS ABROAD

BSM in Chile, Colombia, Paraguay, Bolivia, Dominican Republic, Argentina, El Salvador Aug-11

BSM to Thailand, Indonesia, Vietnam, Myanmar, Cambodia, Malaysia Nov-11

BSM in Ukraine, Uzbekistan, Kazakhstan, Russia, Georgia, Armenia, Kyrgyzstan Dec-11

BSM to Nigeria, Ghana, Ivory coast, Namibia, Zimbabwe, Malawi, Uganda, Ethiopia, Sudan, Egypt, Libya, Morocco,

Algeria Mar-12

INTERNATIONAL EXHIBITIONS IN INDIA

Chemspec , India 14-15 April 2011

CPhI India 1-3 December 2011

EXHIBITIONS ABROAD

CPhI Japan 18-20 April 2011

Vitafoods , Switzerland 10-12 May 2011

CPhI China 21-23 June 2011

Bio US 28-30 June 2011

CPhI South America, Brazil 24-26 August 2011

IPEX, Indonesia 29 Sep - 2 Oct 2011

Supplyside West , USA 12-13 October 2011

Apteka, Moscow or Apteka, Ukraine 5-8 December 2011

Arab Health 2012, UAE 23-26 January 2012


http://pharmexcil.com/v1/Docs/Ipc.pdf


http://www.pharmaceutical-drug-manufacturers.com/articles/top-10-pharmaceutical-companies-in-india.html

http://commerce.nic.in/ann/StrategyPaper.pdf


http://www.eximbankindia.com/op/oplast.pdf

http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_pharma2902.pdf

http://www.cci.in/pdf/surveys_reports/indias_pharmaceutical_industry.pdf

http://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/

http://www.dnb.co.in/pharmaceutical/overview.asp





INTERNATIONAL BUSINESS MEETS IN INDIA

RSBM - LAC countries Jul-11

RSBM - CPhI India Nov / Dec 2011

RSBM - Ahmedabad Jan-12

RSBM - Medical Devices Feb-12

RSBM - Nutraceuticals Summit Feb-12

RSBM - Bio Asia Feb-12

SEMINARS & INTERACTIVE MEETINGS IN INDIA

Seminars/Workshops on Export & IP related issues, Indore, Apr-11

Seminars/Workshops on Export & IP related issues, Ahmedabad, May-11

Seminars/Workshops on Export & IP related issues, Chennai, May-11

Seminars/Workshops on Export & IP related issues, Kerala, Jun-11

Seminars/Workshops on Export & IP related issues, Chandigarh, Jun-11

Seminars/Workshops on Export & IP related issues, Mumbai, Jul-11

Seminars/Workshops on Export & IP related issues, Baroda, Aug-11

Seminars/Workshops on Export & IP related issues, Hyderabad, Aug-11

Certificate Programme on Export Procedures, Hyderabad Oct-11

Certificate Programme on Export Procedures, Mumbai Nov-11

Certificate Programme on Export Procedures, Delhi Dec-11

Certificate Programme on Export Procedures, Bangalore Jan-12

Certificate Programme on Export Procedures, Baddi Feb-12

Certificate Programme on Export Procedures, Kolkata Mar-12

*****









Qualifying Norms:








Updated Resume,




(sd/-)

(Editor-In-Chief)







PROBLEMS AND PROSPECTS OF STEEL INDUSTRY IN INDIA

N. Ragothaman26 Dr. S. Vasantha27

ABSTRACT

The Indian steel industry has entered into a new development stage from riding high on the resurgent economy and rising

demand for steel. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the

largest producer of sponge iron or DRI in the world. India’s position in world’s steel production remained unchanged at the

fourth slot in 2014 with an output of 81.2 million tons despite India logging the second highest growth of 5.1% among the top

five producers. It is estimated that India will become the fastest growing economy out of 34 developed and emerging markets

and 3rd largest economy.

In addition, recent trends and reforms in Indian economic policy economists have concluded that India would be third largest

economy by 2030. Considering steel demand in India has remained sluggish so far in 2013 a midst weak activity and poor

sentiment; however, activity is expected to accelerate modestly in the coming years. Strengthening domestic consumption and

improving external conditions will help underpin the growth of steel using sectors. The government expects the countries

installed steel production capacity to go up to 200 MT by 2020 from around 90 MT now. This paper presents the global

scenario of steel industry as well as Production, consumption and growth of steel industry in India. An attempt has been made

to highlight the trends in production of Steel in private/public sector in India and outlines with the challenges and

opportunities of Indian steel industry with brief SWOT analysis.

KEYWORDS

Steel Industry, Production, Challenges and Opportunities etc.

“Always think outside the box and increase the opportunities that appear, wherever they might be”

Lakshmi Nivas Mittal

INTRODUCTION

India is currently the 4th largest producer of crude steel in the world and is expected to become the 2nd largest producer of crude

steel in the world by 2015-16. The Iron and Steel Industry in India contributes around 2 % GDP and its weight in the Index of IIP

is 6.2 per cent. Also leading producer of sponge iron with a host of coal based units, located in the mineral-rich states of the

country. Per capita consumption of steel in India is at 59kgs as against an average of 216kgs of the world. At a global level,

supply would continue to be more than demand, as capacity additions continues, primarily in emerging economies. The trend is

led by China and India. Indian steel industry comprises of several interlinked segments for value addition broadly classified as

Integrated Producers and Non-Integrated or Secondary producers, which are largely small-scale units and are engaged in re-rolling

and accounts for over 50 per cent of the total indigenous output. The Secondary Producers focus on the production of high-grade

steels and specialty products to meet the specific requirements of the industry and the development plans must include the

strengthening of the secondary producers along with the major producers. This article presents the status, the opportunities,

challenges and future prospects associated within the Steel Industry. According to world steel association the top 10 countries are:

Figure-1a: World Steel Production


26Research Scholar, School of Management Studies, Vels University, Tamil Nadu, India, [email protected] 27Professor, School of Management Studies, Vels University, Tamil Nadu, India, [email protected]







Figure-1b


Figure-2: India vs. World -Steel Production


The level of per capita consumption of steel is treated as one of the important indicators of socio-economic development and

living standard of the people in any country. It is a product of a large and technologically complex industry having strong forward

and backward linkages in terms of material flow and income generation. All major industrial economies are characterized by the

existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their

steel industries in their initial stages of development.

Figure-3


INDIA WOULD EMERGE AS A GLOBAL HUB

A strong Iron and Steel sector is the backbone of a strong economy. The higher consumption of iron and steel is seen as an

indicator of higher development in infrastructure, which explains the growing demand for iron and steel throughout the expanding

global economy. Being a core sector, steel industry tracks the overall economic growth in the long term. The Indian steel sector

enjoys advantages of domestic availability of raw materials and cheap labour. Iron ore is also available in abundant quantities.





This provides major cost advantage to the domestic steel industry.

Figure-4

Sources: CIA world Fact book, IMF

CHALLENGS FACED BY STEEL INDUSTRY

“Controlling raw material costs is a benefit of vertical integration; however, steelmakers should critically assess the value

of vertical integration and consider possible alternatives to help mitigate the cost of raw materials.”

Mike Elliott Global Mining & Metals Leader, Ernst & Young

Overall, the domestic steel industry has improved its technology and maintenance systems. Globally, Indian Steel Industry is yet

to fully match its competitors in the developed countries in all the areas pertaining to adoption of sustainable production

technique. Unless there is reduction in the consumption pattern of the input materials as well as specific emission intensities, it

may be difficult to achieve a balance between increased production and demand.

Table-1: Problems of Indian Steel Industry-Snapshot

Supply With trade barriers having been lowered over the years, imports play an important role in the domestic

markets. Currently India is net importer of steel.

Demand The demand is derived from sectors that include infrastructure, consumer durables and automobiles.

Barriers to entry High capital costs, technology, economies of scale, government policy.

Bargaining power

of suppliers

Low for fully integrated players who have their own mines for raw materials. High, for non-integrated

players who have to depend on outside suppliers for sourcing raw materials?

Bargaining power

of customers High, presence of a large number of suppliers and access to global markets.

Competition High, presence of a large number of players in the unorganized sector.


Figure-5: Demand Projection's






The following picture illustrates the need forever increasing demand for the steel products. Many government and private sector

plays vital role in the consumption of steel products.

Figure-6: Prospects for Steel Making


The Indian metals and mining sector is currently facing a multitude of challenges like weak macro environment, leveraged

balance sheets and heightened regulatory risks. The sector has suffered valuation de-rating since FY12 due to various factors like

environmental and regulatory concerns, cost increases, delayed projects and high interest rates. Government delays in allocating

coal blocks for captive consumption by steel manufactures is seriously hurting the competitive edge of Indian steel sector. The

same story is with iron ore. There are delays in allocating iron ore mines as well as approval for mining licenses. As a result, no

new investment on the ground in the steel sector is happening to add new steel capacities. The strategies are available for us to

augment the steel products are:

Figure-7


The abundant availability of raw materials as if iron ore and cheap manpower in India provide tremendous potential for the iron

and steel sector to grow. Since the sector exhibits large forward and backward linkages, it also implies higher growth

opportunities for the entire nation. India should also capitalize on its advantage as a supplier of galvanized products. The

galvanized products are value added products that are mainly used for roofing, grain storage purposes and technical goods like

AC, automobiles etc., and India has a dominant position in the world market for this product. With the prices firming up and the

global economy on a gradual recovery, the Indian export market is expected to expand soon.





Table-2: SWOT Analysis of Indian Steel Industry

Strengths

Abundant resources of iron ore.

Low cost and efficient labour force.

Strong managerial capability.

Strongly globalized industry and emerging global

competitiveness.

Modern new plants &modernized old plants.

Strong DRI production base.

Regionally dispersed merchant rolling mills.

Weaknesses

High cost of energy.

Higher duties and taxes.

Infrastructure.

Quality of coking coal.

Labour laws.

Dependence on imports for steel manufacturing

equipment’s& technology.

Slow statutory clearances for development of mines.

Opportunities

Huge Infrastructure demand.

Rapid urbanization.

Increasing demand for consumer durables.

Untapped rural demand.

Increasing interest of foreign steel producers in India.

Threats

Slow growth in infrastructure development.

Market fluctuations and China’s export possibilities.

Global economic slowdown.


FUTURE OF INDIAN STEEL INDUSTRY

The following points highlight about steel industry supported by a firm outlook for end-use sectors, finished steel consumption in

India is forecast to grow at a CAGR of 9.2% between 2009 and 2014, reaching almost 100m tons. (Data: CRU Analysis).This

growth may well be impressive, but we do have some concerns as to the local steel industry’s ability to satisfy this demand: key

challenges faced by the Indian steel industry. Research results evidences and there is lot of scope for expansion in consumption

and bright future for steel products in India. The following points highlight the immediate future of the industry:

INDIAN ECONOMY IS EXPECTED TO SURPASS JAPAN BY 2032

India will be a part of the new Steel world … Steel Production Has Jumped since the Economic Liberalization. The Global

Economic Forecast: Asia poised to be the emerging powerhouse of growth. In 2020, the US and China will still be the two largest

economies in the world (in PPP). India leaves Japan behind and moves up to 3rd place.

Figure-8


India, Malaysia and China will post the highest GDP growth rates (above 5%) over 2006-20. The journey has just began.....and it

will reach new heights. Few instances are clear in emerging economics such as: Government focused approach and interventions

are facilitating fast track growth, Synergy in meeting iron ore and coking coal requirements, Iron Ore: Initiatives for simplification

of procedures have begun, Joint Ventures and Equity participation abroad by steel and coal companies for augmenting supplies of

coking coal and Investments in beneficiation of non-coking coal as well as establishing Natural Gas as an alternative source for

usage in sponge iron industry.

STEEL INDUSTRY: A SHIP JUST HITTING BAD WEATHER

2014 is expected to be a “transition year” for the steel industry with all major steel-consuming countries expected to log growth.

In the long term, as urban population increases worldwide, so will the need for steel to build skyscrapers and public-transport

infrastructure. Emerging economies will also continue to be a major driver of demand due to the huge amount of steel required for

urbanization and industrialization. The demand for steel is thus expected to remain strong in the years to come.





CLOSING THOUGHT

India, on the other hand, will pick up pace driven by its construction and manufacturing sectors, and structural reforms from the

new government. Much hope is pinned on India to drive the next growth engine, given its high population and rapid urbanization.

Demand in Japan will be subdued in 2014 due to the consumption tax hike affecting the construction and automotive sectors

negatively but will again rise in 2015. After two years of contraction, steel demand in Europe is likely to improve on the back of a

flourishing automobile sector and a recovering construction sector. With the global economy gradually on the mend, the World

Steel Association expects continued recovery in steel demand in 2014 and projects global steel usage to increase 3.1% in 2014.

For 2015, world steel demand is projected to grow further by 3.3% and reach 1,576 Mt. Improving demand is also expected to

boost steel prices. The steel industry offers a worthy investment opportunity for 2014, as optimism returns, the automobile

industry looks good and so does the construction sector in most developing economies. Add to this a neutral Zacks Rank and solid

earnings growth projection making for a good case for steel.

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*****

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https://www.equitymaster.com/research-it/sector-info/steel/steel-sector-analysis-report-12dec2011.as





EXPORT STRATEGIES AND GARMENT INDUSTRY IN BENGALURU: A STUDY

C. M. Hanumantharayappa28 Dr. R. Thimmarayappa29

ABSTRACT

India’s total textile industry is estimated at US$ 47 billion with exports accounting for 39% share. The world market is

estimated at US$ 450 billion and it is predicted to grow US$ 900 billion by 2015. India is exporting at present a wide range of

items like cotton yarn, fabrics, and manmade yarn and fabrics, wool and silk fabrics, made-ups and variety of garments. India

at present exporting handlooms and handicrafts to more than 100 countries under cluster development programme and

government of India has started cluster development initiation involving technical assistance, subsidies for technology up

gradation and marketing support. This initiation strengthened the competitiveness of the clusters and consolidated their

position in the global value chain.

Gujarat, Maharashtra, Rajasthan, Haryana, Punjab, Andhra Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu are main cotton

producing state in India. There are 1200 medium to large scale textile mills in India and 20% of these mills are located in

Coimbatore. Cotton yarn account for 70% of India’s textile export. India’s textile industry contributes approximately 14% to

industry production, 4% to GDP and 17% to country’s export earnings, employs 45 million people.

KEYWORDS

Export Strategy, Garment Industry, Cotton Yarn, Handloom, Handicrafts etc.

INTRODUCTION

India’s garment / apparel are highly fragmented comprising more than 8000 units and employing some 5 million people. Majority

apparel units are family run business having 50-60 sewing machines. India is the world’s second largest producer of textiles and

garments after China. It is the world’s largest producer of cotton after China, the USA, and the second largest cotton consumer

after China. The textile and garment industry is the biggest manufacturing sector and one of the oldest manufacturing sector

(Devaraja, 2011)1. In 2009 textiles and garments accounted for about 16% of industrial production 18% of export earnings. Some

2000-manufacturer exporters export apparel while roughly 26000 merchant exporters serve as export brokers on behalf of apparel

manufacturers.

Garment industry is textile-based industry. India’s garment exports have been growing at a CAGR of 10% in the previous decade.

However, Indian garment industry has been the lack of scale of operation primarily caused by archic labour laws and obligation to

export 50% of the output for an export-oriented unit.

Readymade Garments Industries in Bengaluru

Readymade garments (RMG) units in India concentrated in the cities like Delhi, Mumbai, Kolkata, Bengaluru, Chennai, Jaipur,

Tirupur, and Ludhiana. There is a different in the products manufactured at Bengaluru. The garment industries in Karnataka are

concentrated in Bengaluru and largest export houses are situated in Bengaluru. The foreign buyers would consider Bengaluru as

their best option after Bombay and Delhi. Most of RMG units are concentrated in Bommanahalli and Peenya Industrial Area.

There are about 3000 RMG units in and around Bengaluru. Besides these RMG units Apparel park at Doddaballapur 35 km away

from Bengaluru and very near to Kempegowda International Airport has started functioning in a big way.

In Bengaluru, garment units are mainly concentrated in the following area (1) Bommanahalli, (2) Bommasandra, (3) Peenya, (4)

Yeshwanthapur, (5) Rajajinagar Industrial Town. At present in about 900 RMG are actively present as manufacturers and

exporters. Karnataka Industrial Area Development Board is the process of acquiring lands for further expansion of the Apparel

park at Doddaballapur. 1600 fabricators are doing job work for these exporters and 50 embroidery units also supporting these

exporters.

Bengaluru is the town of making country’s 30% of garments. Up to 1990-business performance of Bengaluru region slowly

increased. However, the effect of liberalization has caused the closure of unit and many other units on the verge of closure on

account of financial, marketing and labour problems.

28Research Scholar, University of Mysore, Karnataka, India, [email protected] 29Associate Professor, Department of Studies in Commerce, University of Mysore, Karnataka, India, [email protected]









Exporters Strategies

The focus of the present study is to study exporters marketing strategies adopted by the various sectors in the area of production,

promotion distribution and pricing. Strategies deals with the adjustment of controllable factors viz, production physical

distribution, promotion and pricing within the environment of uncontrollable variables viz., competition, legal barriers,

technological variation in adoption and ever changing consumer behaviour.

Further, the Bengaluru consumer behaviour is rapidly changing in demographic variables. Those who understood consumer

behaviour through adoption proper strategies may survive in the competitive market. This requires a continuous review of

controllable factors within which the atmosphere of uncontrollable ones. Garments export strategies refer to marketing plan,

which warrants execution of specific actions successfully.


Vijayabaskar, M. (2002)2 in his study he has stated that the retailer types and major sourcing areas and made the classification of

countries ring wise considering the characteristics of exporting firms.

Sameer Verma (2002)3 has stated that a number of indicators are normally used to measure competitiveness of Indian apparel

experts. Further, he has stated that India would definitely try its hand to corner a good share through whatever means as its

command. However, the ground on which India stands to stretch its hand to corner such a share also needs to be analyzed in order

to understand the probable ability of India to succeed in this venture.

Apparel Export Promotion Council (2009)4 observed the arrival of international brands in Bengaluru, Mumbai, New Delhi and

Tirupur for sourcing woven wear and knitwear has triggered a new dimension in the growth of the study region. Further, it is of

the opinion that they are looking for proper facilities comparable to those developed countries not in terms of size but in terms of

compliance with social accountability standards, quality and environmental management systems, working conditions and work

environment.


The present study at Bengaluru is an explorative in nature, two sets of questionnaire was drafted one for the customers to measure

the level of customer satisfaction, and another questionnaire prepared to measure the impactness of export strategies adopted by

garments exporters. It was felt that customer satisfaction influences the exports of garments and therefore an attempt is made to

study customer satisfaction.

For studying the strategies adopted and exports of garments 150 customers were chosen as sample from the universe and 100

manufacturers and exporters were chosen to elicited valuable information about strategies adopted. To give a scientific touch to

the analysis and presentation of data extensive use of percentages and statistical tools like chi-square and ANOVA are used. The

study covers only Bengaluru area and since sample selected is small any generalizations requires further deep research.

OBJECTIVES OF STUDY

The main objective of the study includes the following:

To study demographic variables influences consumer satisfaction.

So study the strategies adopted by the exporters.

HYPOTHESES OF STUDY

There is no relationship between owners’ factors such as ownership, scale of production, number of machines and

marketing strategies i.e., product, price promotion and distribution strategies.

There is no significant difference in overall satisfaction level of the customers in readymade garment industry based on

age.

There is no significant difference in overall satisfaction level of the customers in ready-made garments industry based

on gender.

There is no significant difference in overall satisfaction level based on income in the readymade garments industry.

Export marketing strategies adopted do not influence scale of exports.





SURVEY FINDINGS

Table-1 reveals data about demographic variables and its influences on consumer satisfaction. The age group 20-30 years has

expressed medium level of satisfaction and the age group 60 and above shown satisfaction level below medium. The chi-square

analysis reveals that the calculated value being less than the TV = @5% level of significance with d.f. = 4 accepts the null

hypotheses and therefore we may conclude that there is no significant differences in overall satisfaction level of the consumers in

readymade garments and the basis of age. Further, the gender demographic details reveal that there are 66 males and the

remaining 84 females.

The chi-square data reveals that the calculated value being 13.8029 @ 5% level of significance with d.f. = (r-1)(c-1) = (5-1)(2-1) =

4x1 = 4 and TV = 9.488 rejects the third hypotheses. Further the same table reveals income data and 110 respondents and 150

belongs to the income group of 30001 - 50000 and there are 14 respondents whose income is above 50001 but below Rs. 60000.

The chi-square analysis reveals that the calculated value being 111.20 greater than TV = 11.070 @ 5% level of significance with

d.f. = 5 rejects the null hypotheses and accepts the alternative. Therefore, the fourth hypotheses are rejected.

Table-2 reveals data about owner’s factors and marketing strategies. Out of 100 respondents to the extent of 68 have strongly

agreed that ownership factors stated in table influences marketing strategies. 20 respondents have agreed that owner’s factors

influences expert strategies. ANOVA analysis reveals that the calculated value being 139.8289 greater than the TV = 3.48 @ 5%

level of significance with d.f. v1 = 4 and v2 = 10 rejects the null hypotheses and accepts the alternative. Therefore, we may

conclude that owner’s factors influences marketing strategies.

Table-3 highlights about export strategies enhancing exports. Export strategies covered varies from branding to organizing

effective international trade fairs. Out of 100 sample garment exporters, nearly 54 have strongly agreed about the strategies stated

in the table strongly influencing marketing of exports. 30 respondents have agreed about the strategies enhancing trade exports.

The ANOVA analysis reveals that the calculated value being 23.32 operator than the TV = 2.87 @ 5% level of significance with

V1 = 4 and V2 = 20 rejects the null hypotheses and accepts the alternative. Therefore, we may conclude that exports strategies

adopted in the study area influences enhancement of exports.

CONCLUSIONS

Bengaluru is going to be a favourable place for garments manufacturing and exports. The apparel park established at

Doddaballapur 35 kms from Bengaluru is ample indication that further garments making may take place at a higher state. The

garment makers should take the advantage of cheap woman labor available in and around Bengaluru wherein unskilled labour is

trained and preferred. Further, the study area has full capability to take up any amount of orders and capable of meeting

international standards. It was revealed that Bengaluru is capable of producing entire range of woven wear and knitwear at low

cost with certainly reasonable quality.

Constrains as the concerned exporters can address delay in delivery properly. Environmental and child labour and personal safety

norms may also affect the growth of study area. The existing situation of high professionalization and educated entrepreneurs in

the study area are being emerged and family connected business units are growing.

The establishment of B-schools and management institutions has paved the way for slow emerging of new generation of

entrepreneurs that is going to be a boon to the garment industry. The government of India and state governments is actively

involved in policy making for promotion of textiles and garments.

REFERENCES

1. Devaraju, T. S. (2011). Indian Textile and Garment Industry (Working paper Indian Council of Social Science

Research). GOI. New Delhi: Ministry of Human Resource Development.

2. Vijayabaskar, M. (2002). Garment Industry in South Asia - Rags or Riches - competitiveness, productivity and job

quality in the past (MFA environment).

3. Verma, Sameer. (2002). Export competitiveness of Indian Textile and garment Industry (Working paper No. 94). New

Delhi: Indian Council for Research on International Economic Relations.

4. (2009). Export statistics for garments and knitwear. New Delhi: Apparel Exports Promotion Council.

5. Retrieved from http://shodhganga.inflibnet.ac.in/bitstream/10603/11265/3/03_abstract.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/11265/3/03_abstract.pdf





6. Retrieved fromhttp://www.ediindia.org/DSR/BANGALORE%20DS.pdf

7. Retrieved from http://www.thesisabstracts.com/ThesisAbstract_470_Marketing-Strategies-Of-Readymade-Garments-

Industr...

8. Retrieved fromhttp://www.fibre2fashion.com/industry-article/38/3702/indian-textile-and-garment-industry-an-overvie...

9. Retrieved fromhttp://shodhganga.inflibnet.ac.in/handle/10603/11265

10. Retrieved fromhttp://www.nature.com/ncomms/2014/140325/ncomms4496/fig_tab/ncomms4496_F4.html

APPENDIX

Table-1: Demographic Variables

Demographic Factors Respondents %

Age in years Satisfaction Level

20-30 Medium 28 19

30-40 High 36 24

40-50 High 35 23

50-60 High 34 23

60-aboveBelow Medium 17 11

Gender Age Group M F Satisfaction Level MP FP

20-30 10 18 Medium 15 21

31-40 25 11 High 38 13

41-50 10 25 High 15 30

51-60 14 20 High 21 24

60 & above 17 10 Below Medium 31 12

Total 66 84 100 100

Income (In Rs. Months) Respondents %

10000-20000 08 5

20001-30000 11 7

30001-40000 50 33

40001-50000 60 40

50001-60000 14 9

60000 & above 07 06

Total 150 100


Note: M: Male, F: Female, MP: Male Percentage, FP: Female Percentage

Table-2: Owners Factors and Marketing Strategies

Owners Factors SA A N D.A. S.D.A. Total

Ownership of units 20 8 2 2 1 33

Scale of production 22 6 1 2 1 32

Number of machines 26 6 1 1 1 35

Total 68 20 4 5 3 100


Note: SA = Strongly Agree, A = Agree, N = Neutral, DA = Dis, Agree SDA = Strongly Dis Agree

Hypotheses

H0: There is relationship between stated owners factors and marketing strategies Reject

H1: There is relationship between stated owner factors and marketing strategy Accept

http://www.ediindia.org/DSR/BANGALORE%20DS.pdf

http://www.thesisabstracts.com/ThesisAbstract_470_Marketing-Strategies-Of-Readymade-Garments-Industr

http://www.thesisabstracts.com/ThesisAbstract_470_Marketing-Strategies-Of-Readymade-Garments-Industr

http://www.fibre2fashion.com/industry-article/38/3702/indian-textile-and-garment-industry-an-overvie

http://shodhganga.inflibnet.ac.in/handle/10603/11265

http://www.nature.com/ncomms/2014/140325/ncomms4496/fig_tab/ncomms4496_F4.html





ANOVA Table

Source of SS d.f. M.S. F-ratio 5% F-limit

Variation (from F Table)

Between sample 1322.0553 (5-1)=4 1322.0553/4 330.5738/2.3637 F(4,10)

=330.5138 139.8289 =3.48

Within Sample 23.6779 (15-5)=10 22.6379/10

=2.3637

1345.6932 (15-1) = 14


ANOVA Analysis

The above ANOVA table reveals that the calculated value being 139.8289 greater than tv 3.48 @ 5% level of significance with

d.f. V1 = 4, V2 = 10 rejects the null hypotheses and accepts the alternative. Therefore, we may conclude that there exists

relationship between stated owners factors and marketing strategy.

Table-3: Export Strategies and Enhancement of Exports

Export Strategies SA A N D.A. S.D.A. Total

Brand Building 12 5 1 1 1 20

Participation in International trade fairs in India 10 6 1 2 1 20

Joint Marketing 06 4 1 1 1 13

Forming Consortium 09 6 1 1 1 18

Organizing effective international 17 9 1 1 1 30

Trade fairs in India

Total 54 30 5 6 5 100


Note: SA = Strongly Agree, A = Agree, N = Neutral, DA = Dis, Agree SDA = Strongly Dis Agree

Hypotheses

H0: The export marketing strategies adopted by the exporters does not influence enhancement of exports Reject

H1: The export marketing strategies adopted by the exporter do influence exports Accept

ANOVA Table

Source of SS d.f. M.S. F-ratio 5% F-limit

Variation (from F Table)

Between sample 380.7 (5-1)=4 380.7/4 95.175/4.08 F(4,20)

=95.175 23.32 =2.87

Within Sample 81.60 (25-5)=20 81.6/20

=4.08

462.30 (25-1) = 24

ANOVA Analysis

The above ANOVA table reveals that the calculated value being 23.32 @ which is greater than TV = 2.87 @ 5% level of

significance with d.f. = v1 = 4 & V2 = 20 rejects the null hypotheses and accepts the alternative. Therefore, we conclude that

export strategies adopted influences enhancement of exports in the study area.

*****





MALL PATRONAGE BEHAVIOUR ANALYSIS: A CLEAR UNDERSTANDING

OF DEMOGRAPHIC, SHOPPING MOTIVES AND SHOPPING BEHAVIOUR

Mukunda Naik D. M.30 Dr. Thimmarayappa R.31

ABSTRACT

The retail industry is one of the promising and sunrise sectors of India. In the past 15 years, retail sector in India has

undergone significant transformation. The organized retail industry in India is expected to grow 20-30% annually and would

triple or four times in size of 20141. Retail industry consisting both organized and unorganized is becoming one of the fastest

growing industries in India. Malls have become a sensation at Bengaluru in terms of changing life styles. Experiences tell us at

Bengaluru adequate attention given to develop first generation centers in terms of design, location, outward appearance and

array of requirements in a sequential order. This study included the mall patronage demographic behaviour analysis and

shopping motives and shopping behaviour analysis. Respondents were personally contacted in selected malls and administered

structured, undisguised and unbiased questionnaire.

KEYWORDS

Shopping Mall, Shopping Motives, Behaviour, Demographic Profile, Retail Boom, Changed Living Styles etc.

INTRODUCTION

Organized retailing took a new birth when Indian economy was liberalized in 1990s. As per Global Retail Development Index

(GRDI) 2012, out of 30 developing countries, the Indian retail sector ranked as the fifth most attractive retail destination on the

world map2. The total turnover of retail trade in India was $330b in 2007, which is expected to touch the milestone of $637b in

2015 (Anand, 2008)3. Favorable demographics, steady economic growth, easy availability of credit and large scale real estate

development will fuel the growth of Indian retail market and all these influences India becoming best choice for top global retail

players. Further, the purchasing power of Bengaluru Urban consumer is growing and branded merchandise in categories like

Apparels, Cosmetics, Shoes, Clothes, Beverages, Food and even jewelry are slowly becoming life style products that are widely

accepted by Bengaluru urban consumer. Along with the rapid growth of retailing in Bengaluru, the urban consumer is showing a

sign of change rapidly. Bengaluru urban consumer enjoys the availability of wide range of products of different brands, quality,

variety and prices. The whole index of shopping and consumer behaviour has been altered in India an account of retail revolution

(Pathak & Tripathi, 2009)4.

Since Bengaluru, customers are showing preference for shopping malls, which is making them to buy different variety of products

under one roof and offer shopping experiences in the form of ambience and entertainment. Therefore understanding shopping

behaviour by global players has become utmost important. Shoppers behaviour is measured in terms of frequency of visit, time

and amount spend. The present paper attempts to study shopping behaviour and demographic profile of shoppers on shopping

behaviour, time spent in mall, and amount spent on each purchase. Further, the study also covers shopping behaviour patronage

behaviour.

OBJECTIVES OF STUDY

To study the effects of demographic variables (gender and age) of the respondents.

To study shopping motives behaviour in terms of frequency of visit, time spent, and amount spent per visit.

To study shopping motives and shopping behaviour.

HYPOTHESES OF STUDY

There exists no variance in males and females regarding their shopping motives to visit mall.

There is no variation between different age group and their shopping motives to visit a mall.

There are shopping motives behind visiting a mall.

Shopping Behaviour will not affect the patronage behavior.

RESEARCH METHODOLOGY

In order to collect valuable data under study a well-tested questionnaire was administered and data was collected in the busy malls

of Bengaluru through a personal contact. Before the distribution of questionnaire, a pilot survey was conducted to ensure validity

30Research Scholar, Department of Commerce, University of Mysore, Karnataka, India, [email protected] 31Head of Department, PG Studies in Commerce, University of Mysore, Karnataka, India, [email protected]







and accuracy and in the light of pilot survey, the final questionnaire was remodeled. A sample of 300 found necessary for this

explorative study and convenient sampling technique was used to collect data. The collected data is presented in the form of tables

and percentages are extensively used in along with chi-square and ANOVA to give a scientific touch to the data. The data

collection started on 1st September 2014 and ended on 30th September 2014.


The existing literature on demographic profile and shopping, shopping motives and shopping behaviour and shopping behaviour

and patronage has been made extensively.

Fischer & Arnold (1994)5 and Jackson et al., (2011)6 in their research publication they have said that males and females exhibit

different shopping motives and behaviour. Further Fisher & Arnold (1994)7 also stated that men and women differ in many

aspects of consumption, product choice and response to advertising and product positioning. Women are also took participation in

purchasing sequence, get information before buying and spend more times in malls.

Dolakia, Pedesrson & Hikmat (1995)8 expressed that married men’s involvement in shopping may be depended upon the wife’s

work status, with husbands of working women being more involved in shopping.

A study by Jha and Singh (2013)9 in India indicated that no difference existing between male and female perceptions, emotions

and shopping behaviour with respect to effect of atmospheric stimuli music sales persons.

The study by Oliver (1999)10 reveals that it is integral to understand the attitudes, feelings, emotions, intentions and evaluation

that affect emotional behaviour.

Cleaveland et al., (2003)11 have expressed that when shopping for holiday gifts, females made greater use than males of product

specific and environmental sources of information, whereas males made greater use of salesperson assistance.

Khare (2011)12 viewed that gender is a predictor of shopping activities while on vacation, with females more likely than males to

engage in shopping and browsing, and females are more likely than males to spend more time in malls.

Marlin & Turley (2004)13 said that younger generations patronage in influenced by recreational and social activities. These

younger generation visit malls for watching movies, eating out getting together with friends, browsing, thrill seeking, and to keep

to touch with novel trends.

Tanber (1972)14 viewed that shopping motives suggest that a person may also go shopping when he needs attention, worth to be

with peers, desires to meet with similar interests. Further, he has identified a number of shopping motivations with the hypotheses

that consumers are motivated by two types of psychological needs personal and social.

Batra and Ahtola (1991)15 have stated in their research study that people usually visit malls keeping two things in mind: hedonic

motive and utility motive. Utility motives suggest that the consumers are concerned about purchasing products in an efficient and

timely manner to achieve their goals with a minimum of frustration. In hedonic motives, shopping is viewed as a positive

experience where consumers may enjoy an emotionally satisfying experience regarding to the shopping activity irrespective of

making a purchase or not.

Arnold and Reynolds (2003)16 investigated hedonic reasons with respect to why people go shopping and found six brand variables

that motivates shopping (a) adventure, (b) social, (c) gratification, (d) idea, (e) role and (f) value.

Wakefield and Baker (1998)17 noted that patronage intention and desire to stay in a mall home influenced by excitement,

environment, variety in goods available at a stage and involvement with shopping.

The study conducted by Pan and Zinkham (2006)18 suggested that various predictions, namely service product, selection and

quality are strongly related to shopper retail choice, whereas others like stores attitude, stores image are important antecedents of

shopping frequency.

Hartman and Sipro (2005)19 and Bloomer and deRuyter (1995)20 in their study they have stated that stores image was the

significant predictor of stores loyalty.

Instrument Variables

Demographic Profile: The sample respondents were asked to respond to the following demographic questions in order to create

demographic profile of the respondents, gender, age, occupation, income, frequency of visit.





Shopping Motives: Shopping motives were listed and varies from going to mall to observe fashion and trends and to eat and get

fun. Respondents were asked to respond to the list of motives on the scale ranging from (1) strongly agree, (5) to strongly

disagree.

Shopping Behaviour: Understanding consumer behaviour in a cross-cultural environment is an essential part of marketing

activities in a global setting that is becoming more consumers centric. Respondents were asked about how much time they spent in

the shopping mall in the form of less than 2 hours, 2-4 hours, 4-6 hours and >6 hours. Further, the sample respondents were asked

about money spent in a mall on differenthedonic and utility motives. The monthly income range covered was 20K to 40K, 41K to

60K, 61-80K, 80K-1 lakh > 1 Lakh. The frequency visit by respondents is measured in terms of number of times they visit the

mall and 5 point scale Likert ranging from (1) strongly agreed to strongly disagree (5).

Statistical techniques were applied to present the data and to give a scientific touch to the data. Chi-square and ANOVA test were

applied the results there from interpreted.

SURVEY FINDINGS & INTERPRETATION

Before concrete results, extraction from the data a Wilcoxon-Mann-Whitney test or U test was conducted and found that the male

and female samples come from identical population at 10% level. The N1 and N2 value greater than with 2 value 0.45 under the

normal curve is 1.64 and well within the acceptance region.

The purpose of present study is to decide the effects of demographics, shopping motive, mall attributes and mall management

strategies on shopping behaviour of the sample respondents. The shopping behaviour to be measured in terms of frequency of

visit, time spent at the mall and quantity of money spent per visit.

Table-1 reveals information on demographic profile of the respondents. Regarding demographic profile of the respondents, it is

highlighted that there are 130 or 43% males and the rest females. The majority of the shoppers belong to the adult age group of

26-35 years and 10% of the respondents belong to the age group of 55 years and above. The education level of status reveals that

120 respondents or 40% belongs to post graduates, 80 or 27% being graduates. The occupation details reveals that 115

respondents or 38% are salaried employees 50 respondents or 17% were professional. Bengaluru being appropriately called as

“Silicon valley” and popularly called as “IT hub” and “pensioners paradise” is attracting different people from different countries.

Majority of them are working in IT retail and service sector. The shopping behaviour of the sample respondents indicates that 120

respondents forming 40% spent 2-4 hours in a mall and 80 respondents spend 4-6 hours in a mall in order to satisfy their motives.

Further, the table-1 reveals that there are 120 respondents or 40.00% whose monthly income is Rs. above 1 lakh. 80 respondents

income is between Rs. 81K-1 lakh and 60 respondents monthly income is Rs. 61K - 80K. This data sufficiently tell us the income

wise Bengaluru respondents are in a better position and capable of visiting many times a mall in a month. The data on amount

spent reveals that there are 55 respondents who spent more than Rs. 6000 in a single visit. 70 respondents are spending Rs. 3001-

4000 in a single visit. There are 120 sample respondents or 40% who visit malls 15 times in a year. 90 respondents or 30% visit

malls between 11-15 times. This data sufficiently tells us the Bengaluru customers “mall buying culture”.

The age and shopping behaviour is measured and shown in Table-1. The details of chi-square analysis are shown in the table

along with TV. The null hypotheses in all the cases have been rejected and the alternative is accepted. Therefore, we may

conclude that and shopping behaviour, time spent, amount spent and frequency of visit is related.

Table-2 reveals data on gender and shopping motives. Hypotheses H1 state there is no variance between males and female

respondents and their shopping motive when visiting a mall. The chi-square analysis of males reveals the existence of variation.

Thus, in case of males the null hypotheses is rejected and in case of females, it is accepted. The combine analysis reveals clearly

the existence of variables.

Table-3 measures shopping motives in terms of fashion trends, discounts, obtaining new friends, movie watching, reducing stress,

play video games, eat, and fun. The change in the living styles of Bengalurians reveals the same trend. There were 180

respondents who are strongly agreeing about motives of male and females, 80 agreeing and 15 respondents a minor amount of

respondents disagreeing. The Hypotheses H3 is rejected here and the alternative is accepted. The ANOVA analysis reveals that the

calculated value being greater than the TV rejects the null hypotheses.

Table-4 speaks about shopping behaviour, which is measured and presented in the table. Shopping behaviour here is measured in

terms of time spent, frequent visit, novelties buying, visit mall along with family members and friends. 190 respondents strongly

agree that the variables influencing shopping behaviour. 90 respondents agree that hedonic and utility motives influence the

shopping behaviour. The ANOVA analysis also supports this stand.





CONCLUSION

The income status of Bengalurians reveals that they one capable of buying novel and usual requirements in order to lead a better

life. Men and women both visit shopping malls most frequently (Underhill 2009)21. Gender differences exist since more female

members go mall to buy requirements. It was noticed at the time of data collection women outnumbering men in all departments

of a mall. Generally females spend more time, relax for a while in a mall.

The study confirms that age of respondents, affecting their shopping behaviour in terms of visits, time and amount spent. The old

people in association with grown up children is found in a mall and therefore we may conclude that grown up children old

shoppers spend more money but were not frequent shoppers. These findings are in accordance to sit et al., (2003)22.

The study confirms that income and occupation of respondents supporting the visit of malls. The study also finds the existence of

relationship and association between age and shopping behaviour.

REFERENCES

1. Satnam, Ubeja Kaur. (2014). A study of sales promotion mix on customer satisfaction with reference to shopping

malls in Gwalior city - GITAM journal of management, 12(1), 79.

2. Yadav, Suman, Siraj, Sadaf. (2014). Mall patronage Behaviour: understanding the inter linkages between shopping

motives, shopper demographics and shopping behaviour. Indian Journal of Marketing. 44 (11), 36.

3. Anand, T. (2008). Organized retailing in India. Need of the hour Marketing Mastermind, 28-30.

4. Pathak, & Trapathi, A. P. (2009). Consumer shopping behaviour among modern retail formats: A study of Delhi and

NCR. Indian journal of Marketing, 39(2), 3-12.

5. Fisher, E., Parnold, S. J. (1994). Sex, gender identity, gender role attitudes, and consumer behaviour. Psychology and

marketing, 11(2), 164-182.

6. Jackson, V., Stoel, L., & Brantley, A. (2011). Mall attributed and shopping value. Difference by gender and generated

Cohort. Journal of retailing and consumer services, 18(1), 1-9. DOI. IV. 1016/i. jretcouser, 2010.08.02.

7. Satnam, Ubeja Kaur. (2014). A study of sales promotion mix on customer satisfaction with reference to shopping

malls in Gwalior city - GITAM journal of management, 12, (1), 79.

8. Dolakia, R-R. Pederson, B., & Hikmet, N. (1995). Married males and shopping. Are they sleeping partner?.

International Journal of Retail and Distribution Management, 23(#)-27-33.

9. Jha, S., & Singh, B. (2013). Impact of ambient music and affability of sales persons on consumer behaviour in a real

retail setting with emphasis on gender differences. Indian journal of marketing, 43(3), 5-11.

10. Oliver, R. (1997). Satisfaction: A behavioral perspective on the consumer. Boston. McGraw-Hill.

11. Cleveland, M., Basin, B. J., Larohe FRCS, M. P., & Bergerar, J. (2003). Information search patterns for gift purchases:

A cross-national examination of gender differences. Journal of consumer behaviour, 3(1), 20-47, 10, 2 120.

12. Khare. (2011). Mall shopping behaviour of Indians small town consumers. Journal of retailing and consumer services,

18(1), 110-118.

13. Martin, C. A., & Turley L. W. (2004). Malls and consumption motivation. An exploratory examination of older

generation and consumers. International Journal of Retail and Distribution Management, 32(10), 464-475.

14. Tauber, E. M. (1972). Why do people shop?. Journal of Marketing, 36(4), 46-49.

15. Batra K., & Ahotala, O. T. (1991). Measuring the headonic and utilitarian sources of consumer attitudes. Marketing

letters, 2(2), 159-170. Retrieved from doi: http://dx.doi.org/10.1007/BF 200436035

16. Arnold, M. J., & Reynolds, K. F. (2003). Headonic shopping motivations. Journal of retailing, 79(1), 77-95.

17. Wakefield, K. L., & Baker, J. (1998). Excitement at the mall: Departments and effects on shopping responses. Journal

of retailing, 74(4), 515-539.

http://dx.doi.org/10.1007/BF%20200436035





18. Pan, Y., & Zinkham, GM. (2005). Determinants of retail patronage: A meta analytical perspective. Journal of

marketing. 53(2), 21-35.

19. Hartman, K. B., & Spiro. (2005). Recapturing store image in customer based store equity: A construct

conceptualization. Journal of Business research, 58(8), 1112-1120.

20. Bloemer, & deRoyter. (1998). On the relationship between store image, store satisfaction and store loyalty. European

Journal of marketing. 32(516), 499-513.

21. Underhill, P. (2003). Why we buy: Thae share of shopping. New York, NY: Simen & Schuster, Inc.

22. Sit, J., Merrilees, Birtch, D. (2003). Entertainment seeking shopping, center patrons. The missing segments.

International Journal of Retail and Distribution Management, 31(2), 80-94.

23. Retrieved fromhttp://www.indianjournalofmarketing.com/current-issue.html

APPENDIX

Table-1: Demographic Profile of Respondents and their Shopping Behaviour

Demographic Profile Number of Respondents Percentage

Gender Male 130 43

Female 170 57

Age group 15-25 years 80 27

26-35 years 90 30

36-54 years 60 20

46-55 years 40 13

Above 55 years 30 10

Education Up to 10th Std. 10 3

Under graduate 50 17

Graduate 80 27

Post-Graduation 120 40

Diploma / ITI 30 10

Ph.D. 10 3

Occupation Student 30 10

Salaried Employee 115 38

Self-employed 45 15

Business 20 7

Homemakers 40 13

Professional 50 17

Income (Permanents) 20 K - 40 K 10 3.33

41 K - 60 K 30 10.00

61 K - 80 K 60 20.00

81 K - 1 lakh 80 26.67

Above 1 lakh 120 40.00

Time Spent (in hours) Less than 2 hours 70 23.33

2 to 4 hours 120 40.00

4 to 6 hours 80 26.67

More than 6 hours 30 10.00

Amount Spent (in Rs) Rs. 1000 - 2000 40 13.33

Rs. 2001 - 3000 50 16.67

Rs. 3001 - 4000 70 23.33

Rs. 4001 - 5000 55 18.33

Rs. 5001 - 6000 30 10.00

More than Rs. 6000 55 18.34

Frequency of visit (Number of Times)

Up to 5 times 42 14

6 to 10 times 48 16

11 to 15 times 90 30

More than 15 times 120 40


http://www.indianjournalofmarketing.com/current-issue.html





Hypotheses

H0: There is no relationship between age and shopping behaviour Reject

H1: There exists relationship between aged and shopping behaviour Accept

Chi-square Table

Age Time Amount Frequency

Spent Spent Visit

Calculated value 43.3334 55.6667 19.0000 54.24

d.f. 4 3 5 3

TV 9.488 7.815 11.070 7.815


Calculated value in each case is greater than the TV @ 5% level of significance with d.f. = 4, 3, 5, 3 rejects the null hypotheses

and accepts the alternative. Therefore, we may conclude that there exist relationship between age and shopping behaviour.

Table-2: Gender and Shopping Motives

Shopping Motives H M L Total M F M F M F M F

Going to mall to see novel fashions & trends 23 32 15 21 2 2 43 55

Going to mall to get discount 21 24 02 06 1 1 24 31

Going to mall to socialize with friends 08 06 04 03 1 1 13 10

Going to mall to watch movies 06 10 02 02 1 1 9 13

Going to mall to relieve stress 08 21 06 06 2 1 16 28

Going to mall to play with video games 02 05 05 04 1 2 8 11

Going to mall to eat and get fun 09 12 06 08 2 2 17 22

Total 80 110 40 50 10 10 130 170


Note: H = High, M = Medium, L = Low

Hypotheses (Males)

H0: There exists no variance in males regarding their shopping motives to visit a mall Reject

H1: There exits variance in males regarding their shopping motives to visit a mall Accept .

Chi-square Table

Calculated value = 44.3428, Sig. Level @ 5% T.V. 21.026, d.f. (r-1)(c-1) = (7-1)(3-1) = 6x2 = 12.

Chi-square Analysis

The calculated value being 44.3428 bigger than the TV = 21.026@5% level of significance with d.f. (r-1)(c-1) = (7-1)(3-1) = 6x2

= 12 rejects the null hypotheses accepts the alternative. Therefore, we may conclude there exists variations in males regarding

their shopping males to visit a mall.

Hypotheses (Females)

H0 : There exist no variable in females regarding their shopping motives to visit a mall

Chi-square Table

Calculated value = 11.2783, significance level @ 5% T.V. 21.026, d.f.(r-1)(c-1) = (3-1)(7-1) = 12.

Chi-square Analysis

The calculated value being 11.2728 which is smaller than the TV = 21.026@5% level of significance with d.f.= 10 the null

hypotheses is accepted. Therefore, we may conclude that there exists no variance in females regarding their shopping behaviour to

visit a mall.





Combines Analysis

Since there is some difference between males and females, regarding their shopping motives to visit a mall we may conclude that

there exists variations in the motives of males and females to visit a mall.

Table-3: Shopping Motives

Shopping Motives (Combined) SA A N DA SDA Total

To study fashion trends 80 40 3 2 3 128

To get discount 30 10 2 1 3 46

To acquaint new friends 15 5 3 1 2 26

To watch a movie 10 4 1 2 2 19

To reduce stress 20 6 2 1 1 30

To play with video games 05 5 2 1 2 15

To eat and get fun 20 10 2 2 2 36

Total 180 80 15 10 15 300


Note: SA - Strongly Agree, A - Agree, N, N - Not Agree

Hypotheses

H0: There are no motives behind visiting a mall Reject

H1: There are motives behind visiting a mall Accept

ANOVA Table

Source of Variation SS d.f. MS F-ratio F-Limit

from the F-table

Between Sample 3655.5005 (5-1)=4 3655.5005/4 913.8751/ F(4,30)

= 913.8751 160.8857 2.69

=5.680

Within sample 4826.5722 (35-5)=30 4826.5722/30

= 160.8857

8482.0727 (35-1)=34

ANOIVA Analysis

The value ANOVA table reveals that the calculated value 5.680 is greater than the TV = 2.69 at 5% level of significance with V1

= 4 and V2 = 30 rejects the null hypotheses and accepts the alternative. Therefore, we may conclude that customers who visit mall

possess shopping notices.

Table-4: Shopping Behaviour

Shopping Behaviour SA A N DA SDA Total

Too much amount of time spent 50 30 1 2 3 86

Give visits to mall to buy frequently 55 20 1 1 2 79

Spend amount on novelties 45 14 2 1 1 63

Visit the mall along with family members 25 18 1 1 1 46

Visit the mall along with friends 15 8 1 1 1 26

Total 190 90 06 06 08 300


Note: SA - Strongly Agree, A - Agree, N, N - Not Agree

Hypotheses

H0: The hedonic and utilities motives do not influence the respondents shopping behaviour Reject

H1: The hedonic and utility motives influences the respondents shopping behaviour Accept





ANOVA Table

Source of variation SS d.f. MS F-ratio F-Limit

from the F-table

Between Samples 5267.2 (5-1)=4 5267.2/4 1316.8/72.44 F(4,30)

=1316.8 =18.18 =2.87

Within samples 1448.8 (25-1)=20 1448.8/20

= 72.44

6716.0 (25-1)=20

ANOIVA Analysis

The value ANOVA table reveals that the calculated value 18.18 is greater than the TV = 2.87 at 5% level of significance with V1

= 4 and V2 = 20 rejects the null hypotheses and accepts the alternative. Therefore, we may conclude that shopping behaviour of

respondents @ Bengaluru is influenced by shopping motives.

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REVENUE MANAGEMENT OF AUTO RICKSHAW DRIVERS IN BANGALORE: A STUDY

Roshan32 Dr. E. A. Parameswara Gupta33

ABSTRACT

Public transportation in Bengaluru, the capital city of Karnataka is characterized by high dependence and low availability of

either Bengaluru Mahanagar Transport Corporation buses or existing costly metro partial intra city transportation means and

Para transit systems like taxis and auto rickshaws. Auto rickshaws are popular means of transporting people from one to

another end. However, unfortunately he has been questioned by police, RTO and many a times false-based compound

complaints are booked against him.

Auto rickshaws at present are liked by one and all travellers, businesspersons, doctors, professors, advocates, students,

employees, etc. The increase in the living styles, changed income level, readiness to spend more and more are some of the

powerful drivers influencing the people to hire an auto. The various auto rickshaw drivers various and service oriented

organizations involvement is a step towards fastening socially responsible behavior on the part of the drivers, improving their

information awareness and acquiring business knowledge, as well as imparting dignity of labour to a profession that does not

receive respect in Indian society. There are more than 150,000 authorized and unauthorized auto rickshaws operating in the

roads of Bengaluru. Nearly 3 lakh families are depending upon this profession. From the obtaining license in the beginning to

driving his vehicle on the roads innumerable risks he has to face. Accidents and loss of life, RTO and police risk and since

many-a-times, these drivers may be wrongly penalized on compound basis.

Over the years the auto drivers have been complaining about their working conditions and are unable even to manage the

revenue on account insufficient possession of business knowledge. The main objective of present study is to explore the

details regarding (1) drivers characteristics, (2) vehicle ownership and financing, (3) Fuel and engine issues, (4) Auto rickshaw

operation, (5) Drivers and police. A well-drafted questionnaire was administered and was used as a schedule keeping in the

mind in education status of drivers. 300 sample respondents were through fit for the purpose. Convenient sampling technique

was employed to obtain the necessary data. Statistical techniques like chi-square, ANOVA and Wilcoxan Matched - pairs Test

was used in order to test the hypotheses.

KEYWORDS

Auto-Rickshaw, Police, Revenue Lifestyles, Business Knowledge Accidents etc.

INTRODUCTION

Auto rickshaws play an important role as Para-transit modes in the public transportation of people in most cities in India. As per

the estimate, there are more than 150000 authorized and unauthorized operating in the roads of Bengaluru and nearly 3 lakhs

people directly depending upon this profession. Daily more than ₹ 600 is earned and many drivers do not owe the vehicle. Since

there is a tough competition and good demand for the auto rickshaws, they have to be managed properly. They should possess

better business knowledge in order to get and retain the income they earn. Most of the auto rickshaws run on double shift in order

to meet requirements of schooling, hospitalization, and shelter and food expenditure.

The phenomenon of pushing these auto rickshaw drivers to the fringes of society is common in Bengaluru. People from nearby

Bengaluru easily migrate to Bengaluru and settle at slums or outer skirts. They are easily targeted as unsafe drivers, anti-social

behavior and take the responsibility of all ills of the ailing transportation system. Unfortunately, they do not possess the technique

of revenue management and spend unscientifically. Further, from the process of licensing to driving his vehicle on the road the

auto rickshaw driver suffers from a lack of information awareness. Even if they possess a minimum skill, they are not in a position

to manage the income. Auto rickshaw drivers are not in a position to differentiate between tourists and officers and have no clue

about the actual licensing fees. He ends up spending more on tourist’s fees than the actual license. He has no knowledge of laws

penalties, or fines for breaking them. He cannot differentiate between money paid up to traffic police to avoid challan or fines

imposed by the courts.

OBJECTIVES OF STUDY

The aim of the present study is to study and manage the variables, which are going to affect the auto rickshaw driving in

Bengaluru. These variables and management includes:

32Research Scholar, Bharathiar University, Tamil Nadu, India, [email protected] 33M.Com Coordinator, A. P. S. College of Commerce, Karnataka, India, [email protected]







To know the level of income of auto rickshaws.

To understand vehicle ownership and financing.

To understand fuel and engine issues.

To understand attitude of police and RTO towards auto drivers.

To know the habits of auto drivers.

To understand the difference in income before and after joining the union.

HYPOTHESES OF STUDY

Monthly income of auto drivers in uniforms.

All auto drivers own their vehicle.

Auto drivers obtain license on their own and assure money.

Fuel and engine issues are influenced by one variable that is stated in the table.

Auto rickshaw drivers are happy with police and RTO.

Auto rickshaw drivers are free from bad habits.

There is no difference in income before and after joining the union.

LIMITATIONS OF STUDY

The study is confined only to Bengaluru. Any generalization needs further deep research. The responses obtained from drivers,

which are given out of their memory. Memory may be subjected memory loss. As usual, the present study also suffers from

financial and time constraints.


There exist a limited literature about auto rickshaw transport, commuter satisfaction and revenue issues. The available literature is

reviewed and presented below.

Bajaj (1961)1 studied living and working conditions of 100 auto rickshaw drivers (ADs) in Delhi. The study attempted to reveal

the issue of ownership pattern, public harassment, overcharging to commuters. 74% of ADs are not satisfied with job because of

low occupation prestige.

Anderson (1965)2 reported that public services are offered to the public, based on the principles of quality. He concluded that the

transport industry overall as a low customer satisfaction.

Jen, W. To R, & Lu, T.(2011)3 in their paper sought to improve understanding of passengers behavioral intention through a usual

relationship model that considers service quality and satisfaction as study parameters Yuan-Chin Huang, Yuan-Chin Huang, Chih

Wa and Jovan Chia-Jung Hsu(2006)4 in their research paper then have discussed the relationship among customers characteristics.

The paper evaluated 24 questions mean value of expected service quality and perceived service quality and suggested that

company’s select a suitable service strategy for different group of passengers.

One world, net one world foundation India (2011)5 is of the opinion that auto rickshaws are a vital mode of transport in Indian

cities, providing low cost mobility and connecting travellers to mass transit or directly to their destinations. The auto rickshaw

sector also provides livelihoods for some of India’s poorest citizens.

Anvita Anand and Rajendra Roy (2003)6 have stated in their study that the training program conducted for ADs in Delhi has been

a step towards fostering socially responsible behavior on the part of the driver.

Disney, J. (1999)7 received genesis issues covering customer satisfaction and loyalty in UK and illustrated trends in customer

behavior. He also concluded that, customer expectations are rising while transport operations becoming more innovative in their

attempts to attract and retain customers.

Daw Kins P. and Reichheld F. (1990)8, in their research paper concluded that, delivering quality service is one of the key and

essential strategies for success and survival of business in today’s competitive environment.

SURVEY FINDINGS

Driver Characteristics

Driver’s age and family details are given in Table-1. These data reveals that a vast majority of the drivers below 50 years and only

27% are between 30-40 years. This is reflected in the fact that 43% of respondents have to support their family to the extent of





50% to 60%. There are 86 respondents forming 29% support their family to the extent of 60% and above. 40% of drivers live in

outskirts of Bengaluru and 30% in slum area and the rest in developing areas. These facts are important considerations in dividing

fare levels of auto rickshaws, since most drivers have to support families and not simple persons who require a minimum wage.

Chi-square analysis reveals that the monthly income of the drivers is not uniform but varies.

Vehicle Ownership and Financing

Vehicle and financial management assumes most important from the point of view of sustainability in the auto rickshaws driving

field. Table-2 indicates majority of the respondents (60%) own their own vehicle and thus the responsibility of paying license fee,

annual tax, repair and reconditioning loan installment along with interest, maintenance etc., falls on them. Further, the table

reveals about sources of funds for buying an auto rickshaw. The survey finds that TVS and Bajaj brands are purchased to carry

passengers and age 50 to carry goods from one to another place. 65 respondents still depends upon financiers to finance the

vehicle buying. Further, the table reveals that 90 or 60% of vehicle owners depend upon agents to obtain license and 43

respondents depend upon financiers. Either agents or financiers are not helpful to the drivers who charges extra heavily, a

financial burden and mismanagement of sources. 62% of respondents act of 65, who purchased vehicle through financiers paid

₹100,000 in the beginning. Collateral loans are granted by the nationalized banks in a limited way and many depend upon private

financiers. Private financier’s charges 5% rate of interest for the default. The chi-square table analysis reveals that not all auto

rickshaw drivers are the owners of the vehicle further chi-square analysis (license obtaining) also reveals that auto drivers are not

obtaining license on their own but depended on others.

Fuel and Engine Issues

Table-3 reveals some data requiring fuel and engine issues. Fuel and engine issues are quantified on a Likert scale of 5 point scale.

Out of 300 respondents, 200 respondents have strongly agreed on the variables stated in the table. 40 respondents strongly agreed

the return trip will be empty and 40 respondents they cannot stay for larger account of security, 39 said the overstay may end up

in challenging by the police and 10 respondents have agreed strongly resorting to overcharging and to cover either days laws or to

cover empty return trip. The study found that 30 respondents ran their vehicle with faulty meter and 20 respondents strongly felt

that prepaid booths are not good and 25 respondents prefer meter down, which is convenient to both passenger and drivers of the

vehicle. The study her confirmed de facto meter down existing in Bengaluru. The ANOVA analysis indicates that respondents are

not happy with police and RTO.

Habits of Auto Drivers

Table-5 reveals the habits of auto drivers. The existence of bad habit measured in terms of playing horse race, cards, alcohol

addiction, misbehavior with customers, quarrel at the time of returning change and not respecting senior citizens. Out of 171

respondents who have agreed strongly, 28 play horse race, 34 cards, alcohol addiction by 38, 45 misbehave with passengers

(police records) 16 respondents quarrel at the time of return of change and only 10 respondents do not respect senior citizens.

The ANOVA analysis clearly says that auto drivers are not free from bad habits thereby they lose all the days’ income and lack

better management of funds. Further, the table reveals that there are 90 respondents who are agreed on the variable that are stated

in the table. There are 39 respondents who might have stand neutral, disagreed strongly disagree.

Income of Auto Drivers before Joining and After Joining Auto Drivers’ Union

There only two strong auto rickshaw drivers’ union, Auto rickshaw drivers Welfare Association. The strength of main members is

no negligent that majority of auto drivers stand outside the union and then do not believe in the union activities. Some elite drivers

become union members and they wear badge of their union also one going to be polite, sober and helpful. Significant changed in

income is reported from the drivers after joining the union. Table 6 reveals some data on before and after effects of joining auto

rickshaw drivers’ union. Wilcoxon Matched Pair Test has been conducted in order to study the same. The Wilcoxon Matched pair

test reveals that there exists difference between before and after joining an auto rickshaw union.

CONCLUSION

The study started with an intention of studying revenue management of auto rickshaw drivers in Bengaluru. Here and there, the

print media provides valuable information of sober attitude of auto rickshaw drivers. Free social service by ‘Ray of good hope’ a

mission started with a vision of rescuing destitute, mad and persons who are severely suffering from diseases and return of left

luggage an appreciable job done by the drivers. That does not mean all are good but a strange bad incidence may be highlighted

and to a great extent and drivers are doing their best to the commuters wherein metro rail is not popular and partial services are

provided at present. A proper education of drivers may make them, responsible and useful to their family and society. The bad

habits among drivers are a greatest addict act, which should be addressed immediately which is going to be useful since it may

bring full income to the family.





REFERENCES

1. Bajaj, S. P. (1979). A study of working and living conditions of 100 scooter drivers in Delhi CSR New Delhi

(Unpublished Dissertation).

2. Anderson, T. W. (1995). Satisfaction with public services - the case of public transportation. Journal of Service

marketing, 9, 30-41.

3. Jen, W. To, R., & Lu, T. (2011). Managing Passenger behaviour intentions - An integrated framework for service

quality, satisfaction, perceived value and switching barriers. Transportation, 38(2), 321-342.

4. Yaan-Chih, Huan, Chih-Hang, Wa, & Jozan, Chia-Jung Hsu. (2006). Using importance - performance analysis in

evaluating Taiwan medium and long distances national highways, national highways, passenger transportation service

quality. Journal of American Academy of Business, Cambridge, 8(2), 98-104.

5. (2011). Documentation of Best Practices, the Auto rickshaw Reconstructing project, Researched and documented

(One world foundation India).

6. Anand, Anvita, & Roy, Rajendra. (2003). Auto rickshaw drivers in Delhi efficacy of Dialogue with service providers.

Economical political weekly. XXXVIII, 35-44.

7. Disney, J. (1999). Customer satisfaction and loyalty the critical elements of service quality. Total quality Management,

10(4), S491-S497.

8. Dawkins, P., & Reichheld, F. (1990). Customer retention as a competitive weapon. Directors and Boards, 14, 42-67.

9. Retrieved from http://tripp.iitd.ernet.in/publications/paper/planning/anvita%203wheeler.htm

10. Retrieved from http://indiagovernance.gov.in/bestpractices.php?id=608

11. Retrieved from http://www.indiagovernance.gov.in/files/autorickshaw_restructuring-best%20practice.pdf

APPENDIX

Table-1: Demographic Characteristics

Sl. No. Variable Number of Respondents %

1. Age of the respondents 20-30 Years 30 10

30-40 Years 80 27

40-50 Years 132 44

50-60 Years 40 13

60 Years & above 18 06

2. Supporting Family Up to 40% 04 01

40% to 50% 80 27

50 to 60% 130 43

60% and above 86 29

3. Qualifications 10th std. 45 15

10+ 95 32

Degree 110 37

PG 40 13

Others 10 03

4. Monthly Income Below 10,000 90 30

10000 - 15000 102 34

15000 - 20000 30 10

20000 - 25000 60 20

25000 & above 18 06

5. Living area Slum 90 30

Outer skirts 120 40

Developing Area 90 30


http://tripp.iitd.ernet.in/publications/paper/planning/anvita%203wheeler.htm

http://indiagovernance.gov.in/bestpractices.php?id=608

http://www.indiagovernance.gov.in/files/autorickshaw_restructuring-best%20practice.pdf





Hypotheses: (Monthly Income)

H0: The monthly income is uniform in all the cases of auto rickshaw drivers Reject

H1: Monthly income is not uniform but varies in among the drivers Accept

Chi-square Table

Calculated value 88.8, d.f. = 5, sig. level 5%, TV = 9.488

Chi-square Analysis

The calculated value being 88.8 greater than the TV = 9.4888 rejects the null hypotheses and accepts the alternative and therefore

we may conclude that the monthly income of the drivers varies.

Table-2: Vehicle Ownership and Financing

Sl. No. Variable Number of Respondents %

1. Vehicle Ownership Yes 180 60

No 120 40

2. Source of Funds Own 30 17

Banks 25 14

Parents 40 22

Financiers 65 36

Father in law 20 11

3. Mode of obtaining license Own 22 12

Agents 90 50

Banks 25 14

Financiers 43 24

4. Initial amount paid in ₹. 60000 12 19

case of finance through ₹. 80000 08 12

a financer, N = 65, ₹. 100000 40 62

(Remaining own auto on ₹. 120000 05 07

daily rental basis)


Hypotheses: (Source of Funds)

H0: All auto rickshaw drivers are owning a vehicle Reject

H1: All auto rickshaw drivers are not owing a vehicle Accept

Chi-square Table

Calculated value = 35.2777, d.f. = 4, sig. level 5%, TV = 9.488

Chi-square Analysis

The calculated value being 35.2777 is greater than the TV = 9.488 @ 5% level of significance with d.f. = 4, rejects the null

hypotheses and accepts alternative.

Hypotheses: (License)

H0: Every auto rickshaw driver obtains license on his or her own and save monthly Accept

H1: Auto drivers is not obtaining license on their own but through the others Reject





Chi-square Table

Calculated value = 91.1666, d.f. = 3, sig. level 5%, TV = 7.815

Chi-square Analysis

The calculated value being 91.16666 is greater than the TV = 7.815 @ 5% level of significance with d.f. = 3, rejects the null

hypotheses and accepts alternative and hence we may conclude that auto rickshaw drivers do not obtain license on their own and

therefore he undergoes additional expenditure.

Table-3: Fuel and Engine Issues (Respondents Opinion)

Variable SA A N DA SDA T

Daily operation and return empty 40 08 02 01 02 53

There is not security at far off place 40 05 03 04 05 57

Police Resort to challenge for the stay 35 04 01 02 04 46

Resort to overcharging to cover the day loss 10 08 02 04 03 27

Run auto with faulty meter 30 10 04 02 06 52

Prepaid booths are not good 20 03 01 03 03 30

Free Structure, Meter down 25 03 02 02 03 35

Total 200 41 15 18 26 300


Hypotheses

H0: Fuel and Engine issues are influenced by only one variable stated in the table Reject

H1: Fuel engine issues are influenced by different variables stated in the table Accept

ANOVA Table

Source of variation S.S. d.f. M.S. F-ratio 5% F-limit

(From F-table)

Between Sample 3558.1742 (5-1)=4 3558.1742/4 889.5435/ F(4,30)

=889.5435 24.5238= 36.2726 =2.69

Within Sample 735.7143 (35-5)=30 735.7143/30

=24.5238

Total 4293.8885 (35-1)=34

ANOVA Analysis

The calculated value being 36.2726 greater than the TV = 2.69 at 5% level of significance with d.f. = V1 = 4, V2 = 30 rejects the

null hypotheses and accepts the alternative. Therefore, we may conclude that different factors influence the engine and fuel issues.

Table-4: Auto rickshaw Drivers, Police and RTO


Police book the case without mercy 40 9 1 1 1 52

Police book the case on compound basis 30 11 2 2 2 47

There is no parking place 30 10 3 1 2 46

Auto rickshaw drivers bribe the police 35 8 1 1 1 46

Auto rickshaw drivers bribe the RTO 40 10 1 1 2 54

Police book the cure because of violation of risks 05 12 2 1 1 21

RTO book the case because of un-emphasized service 10 20 2 1 1 34

Total 190 80 12 8 10 300


Hypotheses

H0: Auto rickshaw drivers are happy with police & RTO Reject

H1: Auto rickshaw drivers are not happy with police & RTO Accept





ANOVA Table


(From F-table)

Between Sample 3483.9048 (5-1)=4 3483.9048/4 870.9762/ F(4,30)

=870.9762 43.1525= 20.1836 =2.69

Within Sample 1294.5748 (35-5)=30 1294.5748/30

=43.1525

Total 4778.4796 (35-1)=34

ANOVA Analysis


null hypotheses and accepts the alternative. Therefore, we may conclude that auto rickshaw drivers are not happy with police and

RTO.

Table-5: Habits of Auto Rickshaw Drivers


Auto rickshaw Drivers play horse race 28 12 1 1 4 46

Auto rickshaw Drivers play cards 34 13 2 2 3 54

Auto rickshaw Drivers are drunkards 38 11 2 1 2 54

Auto rickshaw Drivers misbehave with passengers 45 10 1 2 1 59

They do not settle the transactions &quarrel 16 26 3 3 5 53

at the time of returning the change

Auto rickshaw drivers do not respect senior citizens 10 18 2 1 3 34

Total 171 90 11 10 18 300


Hypotheses

H0: Auto rickshaw drivers are free from bad habits at Bengaluru Reject

H1: Auto rickshaw drivers are not free from bad habits at Bengaluru Accept

ANOVA Table


(From F-table)

Between Sample 3314.3268 (5-1)=4 3314.3268/4 828.5817/ F(4,25)

=828.5817 48.5067= =2.60

17.0818

Within Sample 1212.6668 (30-5)=25 1212.6668/25

=48.5067

Total 4526.9936 (30-1)=29

ANOVA Analysis


null hypotheses and accepts the alternative. Therefore, we may conclude that auto rickshaw drivers are not free from bad habits at

Bengaluru.





Table-6: Income of Auto Drivers before & after joining Auto Drivers Union

Income before Income after Difference Rank Rank with Sign

Joining (₹) Joining (₹)

6000 5000 1000 +1 +1 -

8000 10000 2000 -3.5 - -3.5

10000 12000 2000 -3.5 - -3.5

12000 15000 3000 -7.0 - -7.0

15000 15000 3000 -7.0 - -7.0

20000 23000 3000 -7.0 - -7.0

23000 25000 2000 -3.5 - -3.5

25000 27000 2000 -3.5 - -3.5

Total +1.0 -35.00


Hypotheses

H0: That there is no difference in income before and after joining the union Reject

H1: There is difference in income before and after joining union Accept

Wilcoxon Matched Pair Test

The TV of T at 5% level of significance when n = 8 = 4 (using a two tailed test because our alternative hypotheses is that there is

no difference between the perceived value of the two samples). The calculated value of T is 35, which are greater than the table

value of 8 = 4 and hence are reject the null hypotheses and accepts the alternative. Therefore, we may conclude that there is

difference in income before and after joining union.

*****









Qualifying Norms:








Updated Resume,




(sd/-)

(Editor-In-Chief)







TOURISM ATTRACTIONS IN TAMIL NADU

M. Murugesan34 Dr. T. R. Gurumoorthy35

ABSTRACT

In general, tourism promotes exchange of ideas and views and facilitates interaction of people and their culture. Tourism acts

as an instrument for achieving national integration and better development. Moreover, the tourism industry in India is

economically important and grows rapidly. The World Travel and Tourism Council calculated that tourism generated INR 6.4

trillion or 6.6% of the nation’s GDP in 2012 and supported 39.5 million jobs, which is 7.7 percent of its total employment.

The Government of Tamil Nadu aims to make use of Tourism for the promotion of the services sector and generation of

employment. Based on the importance, potential for attracting population and uniqueness, the tourist places in the state of

Tamil Nadu can be broadly classified into various dimensions, since the important Heritage locations include places of

historical monuments and places of historical interest, and many places have one or more of the above attractions for the

tourists. Therefore, this paper aims to explain the factors, which attract the tourists in Tamil Nadu.

KEYWORDS

Tourism, Instrument, Integration, Uniqueness, Tourist, Attraction etc.

INTRODUCTION

Tourism is one of the world’s most important and faster growing economic sectors, generating jobs and substantial wealth for the

economics around the globe. Tourism has a high potential for generation of employment. Tourism promotes exchange of ideas

and views and facilitates interaction of people and their culture. Tourism acts as an instrument for achieving national integration

and better development. The tourism industry of India is economically important and grows rapidly.

The sector is predicted to grow at an average annual rate of 7.9 from 2013 to 2023. This gives India the third rank among counties

with the fastest growing tourism industries over the next decade. In Tamil Nadu Tourism comprises Tourism Department in the

Secretariat, and a Commissioner ate of Tourism functioning to formulate policies and implement programmes for the development

of tourism sector in the state. Tamil Nadu Tourism Development Corporation is a state owned public sector undertaking to initiate

novel ventures and innovate new schemes for providing demonstration effect to the private sector. In performing this role, Tamil

Nadu Tourism Department coordinates the activities of various other Government departments or agencies and the private sectors.

While Tamil Nadu has a strong industrial base, there is a scope on the business side also. Aggressive promotion and marketing

campaigns through print and electronic media at the domestic, national and international levels and creation and up gradation of

basic amenities and infrastructure at tourist spots have resulted in the increase of tourist arrivals to Tamil Nadu. In the year 2011,

1400.59 lakhs tourists and in 2012, 1876.99 lakhs tourists visited Tamil Nadu.

STATEMENT OF PROBLEM

The foremost important tourist attractions in Tamil Nadu are its impressive temples, which are true edifices of a great and ancient

culture vibrant and lively even today. Based on the importance, potential for attracting population and uniqueness, the tourist

places in the state of Tamil Nadu can be broadly categorized into various dimensions, namely Heritage locations including

monuments and places of historical interest, many places have one or more of the above attractions for the tourist. Based on

information available from various locations in Tamil Nadu, a sample situation analysis in respect of representative tourist

destinations in the State has been attempted in this present study.

OBJECTIVES OF STUDY

To study the tourist attractions in Tamil Nadu covering the historical sites, pilgrim / other sites and tourism centric

practices there.

To study the factors determining tourist attractions in Tamil Nadu.

34 Research Scholar, Department of International Business and Commerce, Alagappa University, Tamil Nadu, India,

[email protected] 35 Professor, Department of International Business and Commerce, Alagappa University, Tamil Nadu, India,

[email protected]







ATTRACTION OF TOURISM IN TAMILNADU

Over the years, Tamil Nadu has occupied a prominent position and has been a major international tourist hub due to its varied

natural resources and manmade wonders. Tamil Nadu offers attractive tourist destination at the International level and its wide

wealth of rich cultural heritage and monuments of architectural splendor is well preserved to carry it on for years to come.

Tamil Nadu has always aimed at developing the existing tourism infrastructure in the State, to explore the unexplored potential

that the state treasures and most importantly providing world class service to all its tourists. Keeping all this in view, Tamil Nadu

has grown as a tourism destination and it has enhanced every aspect of its asset and created more options which have added more

value to its already existing treasures. Tamil Nadu or “Enchanting Tamil Nadu”, as it is called by the Tamil Nadu Tourism

Development Corporation draws both local and foreign visitors alike, with over 1.7 million from abroad, 50 million, and more

from the rest of India.

The government with its support has promoted tourism in various sectors by considerable investments in establishing efficient

transportation systems, road networks and a well-developed rail network system, showcasing its cultural assets and heritage sites,

enhancing leisure tourism, offering adventure tourism, Business Tourism, Medical Tourism, Fairs/Festivals Tourism, Religious

tourism, academic tourism, rural tourism and working on its emerging tourism attractions. Tamil Nadu stands second place next to

Maharashtra in respect of foreign tourist visits in India.

Efficient Transportation System

The Government of Tamil Nadu has made considerable investments in establishing efficient transportation systems, with one

International Airport at Chennai and other Airports at Madurai, Tiruchirappalli, Coimbatore, Salem and Vaagaikulam and with the

help of Government & Private Airlines; Tamil Nadu is well connected with the whole world and India. The road and rail networks

interconnect the various urban, rural and agricultural regions of the state, as well as providing a link to the rest of India and the

world. The well-developed railway system connects cities in Tamil Nadu to all the other cities in India, making Tamil Nadu a very

accessible destination for both local and foreign visitors. In addition, people can take better views of the state on exciting rail

journeys. Tamil Nadu is also accessible by sea through the major and minor ports that handle commercial and industrial traffic

within Tamil Nadu and the rest of the country and the world.

Leisure Tourism

Tamil Nadu is an ideal destination for those who wish to take a perfect holiday and to sit back and relax. The state offers various

leisure destinations. The region is blessed with a rich natural beauty made evident in the many beautiful hill resorts, bird

sanctuaries, botanical and horticultural gardens, beach resorts, splendid waterfalls and zoological parks. Known for its magnificent

hills, visitors can stay at the many splendid hill resorts and stations at Coonoor, Kodaikanal, Top Slip, Udhagamandalam, Yelagiri

and Yercaud. The hills in Tamil Nadu are characterized by thick forests teeming with wildlife. Foremost among these hills is the

Cardamom, Palani, Nilgiri and Shevaroy hills. Visitors can witness a distinct and amazingly beautiful sunrise at the southernmost

tip of India at the Kanyakumari, visit one of the longest beaches in the world at the Marina Beach in Chennai and Mamallapuram,

as well as the waterfalls, theme parks and resorts, and savor the delectable delicacies in the culinary centers and eateries in the

region.

Eco Tourism

Tourists can come and see the animals in the reserves, national parks and sanctuaries like the Mudumalai National Park, the

Kalakkad Mundanthurai Tiger Reserve, the Gulf of Mannar Biosphere Reserve, the Indira Gandhi Wildlife Sanctuary, the Arignar

Anna Zoological Park and the Nilgiri Biosphere Reserve, which houses 10 percent of the endanger Nilgiri tar species. The wide

variety of flora and fauna and marine life all make Tamil Nadu immensely popular to tourists.

Heritage Tourism

Tamil Nadu is blessed with a wealth of temples, which personify rich sculpture and architecture. Visitors who would like to

experience the rich historical legacy of Tamil Nadu can go on tour at the various historical monuments and UNESCO World

Heritage Sites including some of the grandest Dravidian architectural achievements found in the distinctive Hindu temples located

in various areas in the state. Heritage tour in Tamil Nadu has a rich cultural heritage with artistic and architectural evidences.

Many foreign tourists visit Tamil Nadu particularly to take pleasure in seeing heritage places. The major centres of heritage tourist

attraction in Tamil Nadu are Chennai, Kanchipuram, Mahabalipuram, Trichy, Thanjavur, Madurai, Chidambaram,

Thiruvannamalai, Rameshwaram and Kanyakumari. This includes the Airavateswara temple in Darasuram and the Rajagopuram

of Sri Ranganathaswamy Temple in Srirangam.





Adventure Tourism

Adventure sport at its extreme point thrills enthusiasts in both air and water. They can quench their appetite for adventure and get

an adrenaline rush from some of the sporting events and destinations in Tamil Nadu. Trekking is also a great way of enjoying the

rugged beauty of the terrain and stopping at some of the animal sanctuaries and reserves that house a wide variety of birds, deer,

bears and other animals and wildlife can really double the level of fun.

Business Tourism

Tamil Nadu has truly emerged as a fully developed MICE destination. With cross-border business opportunities where top

executives from around the world come here for their business meetings, conferences, conventions, seminars and other business

related matters. These are all wonderful opportunities to combine business with pleasure by integrating tourism with their business

trips. Tamil Nadu is a viable destination for business dealings and opportunities that would create jobs for more than 40,000

engineering students graduating each year. The state is seeing a convergence of new technologies, joint operations and

productions that make it truly worth visiting for business travellers from all over the world.

Medical Tourism

Tamil Nadu has emerged as one of the top global destinations for medical tourism, offering cost-effective medical services and

treatments using state-of-the art medical instruments and procedures at world-class medical facilities and hospitals that are

comparable with some of the best in the world. With healthcare services that can cost only a fraction of what such services would

cost in developed countries, the number of medical tourists going to the country continues to grow exponentially. Tamil Nadu is

one of the preferred destinations for healthcare tourism in the country and has been acknowledged in the fields of Eye Care,

Oncology, Dialysis, Kidney Transplant and Orthopedics. Each year, a growing number of medical tourists are flocking towards

Tamil Nadu to avail of what medical tourism has in store for them in this state. Apollo Hospitals Enterprises Ltd., Government

General Hospitals, MIOT Hospitals, Madras Medical Mission Hospital, SRM Hospital, Sri Ramachandra Hospital, Chennai

Transplantation Centre, Meenakshi Mission Hospital and Research Centre, K.G. Hospitals and PG Research Centre, Arvind Eye

Care Hospital are popular hospitals in Tamil Nadu.

Beach Tourism

Provided with the best beaches namely Marina Beach, Elliot Beach, Kovalam Beach, Mamallapuram, Kanyakumari Beach and

Poompuhar Beach, Tamil Nadu offers refreshing relaxation for its tourists as the beach in Tamil Nadu is packed with water sports

and other activities for all its tourists.

Fairs Tourism

A state that keeps itself busy with festivals, art exhibitions, cultural fairs and other events could draw a great number of

enthusiasts to its shores. Part of the deep cultural heritage from the Tamil people is the significant number of folk dances that are

performed in various occasions including theaters. Some of these dances include the much-celebrated karakattam, the very

colorful Mayilattam and the Paraiyattam, which add to the glorious charm of Tamil Nadu.

Religious Tourism

With innumerable temples and various places of meditation practices religious tourism thrives in this place. People who would

like to have a deep religious experience in their visit to India can do so more conveniently by arranging tourism packages that

involve visits to rich religious destinations and centers in Tamil Nadu. The serene atmosphere of the state coupled with a vast

array of age-old temples and monuments provide the perfect tune to calm the mind.

Academic Tourism

Tamil Nadu is attracting a growing number of foreign students who are availing various cultural exchange programs between their

schools and the educational institutions and universities in Tamil Nadu. Not only will these students be immersed in the way of

life at Tamil Nadu’s institutions, but they can also enjoy the combining tourism amenities in their exchange programs.

Clean Locales

An extremely important objective for foreign tourists particularly is cleanliness and Tamil Nadu brings to its tourists a clean and

healthy locale. Tamil Nadu takes special care of its tourists and makes every effort at providing them with comfort and warmth

until they are part of the state of Tamil Nadu. Equipped with luxury and budget hotels Tamil Nadu makes just the perfect holiday

and travellers visiting this destination will take back with them exciting memories that will bring them back to this place

repeatedly.





Rural Tourism

Tamil Nadu government is exerting considerable efforts in promoting rural tourism in the state, particularly the lesser-known

tourist destinations in various rural regions in the state. Under such programs, tourists can experience life at these villages in their

unadulterated form. The rural population interacts with the tourists and this helps tourists to get a better feel of the rural culture. In

these village tours, visitors can take part in the various agricultural activities, taste the delicious south India cuisine, get a massage

and visit the temples. Aside from that, these villages will also feature other traditional tourist activities such as farm tours,

camping, hiking, biking, agricultural activities, boating, fishing and of course – shopping. In addition, people get to buy the

authentic handiwork made by the rural community such as actual weaves of saris straight from the weavers.

Social Responsibility

The improvements to infrastructure and new leisure amenities that result from tourism also benefit the local community. Tourism

encourages the preservation of traditional customs, handicrafts and festivals that might otherwise have been allowed to wane, and

it creates civic pride. Interchanges between hosts and guests create a better cultural understanding and can also help raise global

awareness of issues such as poverty and human rights abuses.

Emerging Tourism Attractions

The government of India is continually seeking various ways of attracting international visitors to its states such as Tamil Nadu.

New markets in the tourism industry are being explored, including cruise tourism packages and helicopter tourism options where

Tamil Nadu, as well as India, has no significant market share. These and some other innovative tourism packages will be in store

for current and future visitors to Tamil Nadu, and be enamored with what the region has to offer from its rich natural, cultural and

historical heritage.

New Tourism Policy

The Tamil Nadu government during 1992 released the first Tourism policy for the state. The policy has guided new investments in

tourism and hospitality sector. Government gave a major fillip to infrastructure development and tourism promotion, which has

resulted in Tamil Nadu becoming a leading state in tourism growth and development of tourist infrastructure. Now the ‘Vision

Tamil Nadu – 2013’ released by the Tamil Nadu government envisages a major role for tourism in the overall development of the

state. To achieve the targets set in the vision document, a new tourism policy is being formulated. The new tourism policy aims to

attract more high spending tourists and investments in tourism and hospitality related infrastructure.

CONCLUSION

The present study concludes that the tourism sector does not only attract the tourists but it also creates a major contribution to the

growth of the economy and generates employment opportunities as well. The Tamil Nadu government has also taken up various

initiatives, the tourism departments of various states and the private players to transform India into a lucrative tourist destination

in the world. Let us hope that Tamil Nadu, through the ‘Vision Tamil Nadu – 2013’ released by the Tamil Nadu government

would envisage a major role for tourism in the overall development of the state.

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14. Retrieved from http://tamilnadutourism.org/TN-Overview.html

15. Retrieved from http://www.biztechreport.com/story/578-top-10-reasons-visit-tamilnadu

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113042600126...

17. Retrieved from http://www.documan.net/d/Marketing-Strategies-for-Promoting-Medical-Tourism-in.pdf

18. Retrieved from http://www.indialabexpo.com/exhibitors/about-india.asp

19. Retrieved from http://www.rediff.com/business/report/union-budget-economic-survey-stable-govt-global-economic-

recov...

20. Retrieved from http://www.tamilnadutourism.org/pdf/policy-note-2012-13-english.pdf

21. Retrieved from http://www.theher.in/survey/HM-Institute-2014.html

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23. Retrieved from https://www.dnb.co.in/Travel_Tourism/Indian_Travel_and_Tourism_Industry.asp

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http://tamilnadutourism.org/TN-Overview.html

http://www.biztechreport.com/story/578-top-10-reasons-visit-tamilnadu

http://www.business-standard.com/article/companies/tourist-arrivals-in-tamil-nadu-up-34-113042600126

http://www.business-standard.com/article/companies/tourist-arrivals-in-tamil-nadu-up-34-113042600126

http://www.documan.net/d/Marketing-Strategies-for-Promoting-Medical-Tourism-in.pdf

http://www.indialabexpo.com/exhibitors/about-india.asp

http://www.rediff.com/business/report/union-budget-economic-survey-stable-govt-global-economic-recov

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http://www.tamilnadutourism.org/pdf/policy-note-2012-13-english.pdf

http://www.theher.in/survey/HM-Institute-2014.html

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CONSUMER’S ENGAGEMENT ON FAST FOOD BRAND PAGES

OF FACEBOOK IN DELHI

Nahid Darakhshan36 Ammar Hafeez37

ABSTRACT

Since competition is increasing and consumer's active role is intensifying, purchasing power of buyers has increased

immensely. To which, marketers use Facebook brand pages as a new marketing tool. Facebook brand pages fans control the

promotional activities largely. Hence, understanding online customer engagement related to brands on Facebook site is of

great importance for marketers.

The study aims to understand the online customer engagement on Facebook pages of fast food brands in Delhi, India by

identifying the level of Customers’ brand related activeness on such pages by using COBRA Typology developed by Mutinga

et al. (2011). It also tries to identify the ranking of key motivational factors that influence Delhi fans to engage in Facebook

pages of fast food brands. The research also explores the relationship between Delhi customer engagement on a Facebook

page of a fast food brand and purchase intention for that brand.

A self-structured questionnaire was used to collect the data, which is structured, on the bases of Cobra Typology by Mutinga

et al. (2011) and Uses & Gratification Categorization model by McQuail (1983). Descriptive statistics, average ranking

method and correlation were used to analyze the data.

The results reveal that customers are mostly engaged in consuming related activities of COBRA and consider seeking

information as the most important motivator for such engagement on fast food brand pages. Besides, it also revealed that there

exist positive relationships between customer online engagement and purchase intention.

KEYWORDS

Social Media Marketing, Social Networking Sites, Online Customer Engagement, Purchase Intention etc.

INTRODUCTION

With the increasing roles of individuals living in metro cities of India, consumers now find it difficult to spare enough time on

cooking habits. The time is changing very fast from men being the breadwinner to women now lending their hands in financial

assistance by being actively involved in various hectic professions. To which, working individuals, couples and parents save their

time and efforts by relying on fast foods which also appetites young children. This has encouraged a stiff competition in the fast

food industry in the country, India, specifically in metro cities. To cope with the intense competition, brands are now

implementing social media marketing to woe their target customers.

Makic and Duman (2013) have correctly said that Social Networking Sites (SNS) is currently a big boom in online business

especially for marketing purposes. Social networking sites such as Facebook, Twitter and LinkedIn are growing at a rapid pace

and now connect millions of people who build relationships online. In addition to that, SNSs not only changed the way people

interact but also the way customers interact with companies and brands. Businesses through social networking sites are predicted

to be the next large and disruptive phenomenon in business in terms of redefining the customer relationships.

Among the famous SNS Facebook is the most widely used? According to alexa.com (2013), Facebook is the second most used

website after Google in the world. Among its many features, Facebook groups are a particularly widespread and popular

application that support unique forms of social interaction and generate discussions based on common interests.

Many researchers like Casteleyn, Mottart, and Rutten (2009); Park, Kee, and Valenzuela (2009) have supported the above

statement. By joining a group, Facebook users interact with other group members and share information with ease and speed; this

offers a promising platform for advertisers to build viral-driven, multidirectional communication with consumers. Once

consumers join a brand-related group on Facebook, their brand perceptions and purchasing decisions could be influenced by

mobilizing information they receive from other members.

36Student, Centre for Management Studies, Jamia Millia Islamia, New Delhi, India,[email protected] 37Student, Centre for Management Studies, Jamia Millia Islamia, New Delhi, India, [email protected]







In addition, Facebook offers space for marketing managers to promote their brands through creating a page for a certain brand,

which allow them to display their most important news on their page timeline, show their new products, post videos, images and

audios related to the brand. In this way, they are able to influence fans' choices, rapidly distribute knowledge and perceptions

regarding new products.

The customer audience present on Facebook is powerful and more in control, they have shifted from being passive to active users,

since they are now able to share their experiences, ideas and opinions about the brands and companies in real time. With the

advent of such promotional activities and enhancing consumers’ say for brands, marketers are seeking to convert potential buyers

into actual buyers by increasing their purchase intentions, which requires a great insight into understanding online customers’

engagement on Facebook brand pages. With increasing competition and intensifying consumers’ active role, purchasing power of

buyers has increased immensely. To which, marketers use Facebook brand pages as a new marketing tool. Facebook brand pages

fans control the promotional activities largely. Hence, understanding online customer engagement related to brands on Facebook

site is of great importance for marketers.

The study aims to understand the online customer engagement on Facebook pages of fast food brands in Delhi, India by

identifying the level of Customers’ brand related activeness on such pages by using COBRA Typology developed by Mutinga et

al. (2011). It also tries to identify the ranking of key motivational factors that influence Delhi fans to engage in Facebook pages of

fast food brands.

The research also explores the relationship between Delhi customer engagement on a Facebook page of a fast food brand and

purchase intention for that brand. A self-structured questionnaire was used to collect the data, which is structured, on the bases of

Cobra Typology by Mutinga et al. (2011) and Uses & Gratification Categorization model by McQuail (1983).

Descriptive statistics, average ranking method and correlation were used to analyze the data. The result reveal that customers are

mostly engaged in consuming related activities of COBRA and consider seeking information as the most important motivator for

such engagement on fast food brand pages. Besides, it also revealed that there exist positive relationships between customer online

engagement and purchase intention.

Social Media Marketing

As defined by Sisira Neti (2011) “Social media marketing consists of the attempt to use social media to persuade consumers that

one's company, products and/or services are worthwhile.”

Social Networking Sites

Social networking sites as defined by Trusov et al. (2009) are networks of friends for social or professional interactions.

Online Customer Engagement

Mollen & Wilson (2010) define online customer engagement as “the cognitive and affective commitment to an active relationship

with the brand as personified by website or other computer-mediated entities designed to communicate brand value.”

Purchase Intention

Purchase intention is defined as an “individual`s readiness and willingness to purchase a certain product or service” by Azjen and

Fishbein (1980).


Nowadays, consumers are using different social media platforms for example Facebook, Twitter and Youtube which help them to

access information related to different brands and to interact, express and share content about different brands. This could be

shortly termed as online customer engagement.

In one study by Mollen and Wilson (2010) online customer interaction has been defined as the cognitive and affective

commitment to an active relationship with the brand as personified by website or other computer-mediated entities designed to

communicate brand value.

Mutinga D et al. (2011) have described such online engagement as consumers’ online brand related activities (COBRAs) stating

that Watching brand-related videos on Absolut Vodka’s YouTube channel, talking about IKEA on Twitter and uploading pictures

of their new Converse sneakers to Facebook are examples of consumers’ online brand related activities (COBRAs). Since then

number of typologies of COBRAs have been developed that categorize online consumer behaviors into various users and usage

types. One of them was developed by Mutinga D et al. (2011) in which COBRAs were categorized into three dimensions that

correspond to a path of gradual involvement with brand-related content on social media, namely consuming, contributing and

creating.





Table-1: Cobra Typology as a Continuum of Three Usage Types – Consuming, Contributing and Creating

COBRA Type Examples of brand related social media use

Consuming • Viewing brand-related video

• Listening to brand-related audio

• Watching brand-related pictures

• Following threads on online brand community forums

• Reading comments on brand profiles on social network sites

• Reading product reviews

• Playing branded online videogames

• Downloading branded widgets

• Sending branded virtual gifts/cards

Contributing • Rating products and/or brands

• Joining a brand profile on a social network site

• Engaging in branded conversations, e.g. on online brand community forums or

social network sites

• Commenting on brand-related weblogs, video, audio, pictures, etc.

Creating • Publishing a brand-related weblog

• Uploading brand-related video, audio, pictures or images

• Writing brand-related articles

• Writing product reviews

Sources: Mutinga et al. (2011). Introducing COBRAs Exploring Motivations for brand related social media use, International

Journal of Advertising, 30(1).

These dimensions form the basis on which we will identify the level of Customers’ brand related activeness on Facebook for fast

food brands of Delhi customers.

Social media have thereby transformed online consumer behavior as stated by Kaplan & Haenlein (2010), which has important

consequences for firms, products and brands. In the view of Chiou & Cheng (2003) and Villanueva et al. (2008), online

consumers’ interactions with and about brands have a much stronger impact on consumer behaviour than traditional forms of

marketing and advertising. Hence understanding the factors that could motivate online customer engagement in the industry of

fast food is of paramount important as there is an emerging intense competition in the industry with the increasing busy schedules

and roles of metro city consumers.

In the context of media use, Rubin (2002) has defined motivations as the incentives that drive people’s selection and use of media

and media content. Rodgers (2002) and Ko et al. (2005) have showed in their studies that motivations influence website

effectiveness, attitudes towards brands and advertisements, and purchase behavior.

To understand the motives/ drivers behind customer engagement on a Facebook brand page, this research will be partially built

upon the well-established Uses and Gratifications (U&G) model, originally developed and employed by communications

researchers to understand people’s motivations for using different media.

Explained by University of Twente, uses and gratifications theory attempts to explain the uses and functions of the media for

individuals, groups, and society in general. U&G researchers like Rubin (1984), Ko et al (2005) and Choi et al. (2009) usually

speak of motivations when describing why people consume certain media and what satisfactions they eventually receive thereof.

Many motivation classifications have been developed for many media, genres and programmes. Today, the most cited and widely

recognized U&G categorization is that of McQuail (1983), who distinguish four gratification categories: entertainment, integration

and social interaction, personal identity and information. Recent studies have discovered that in addition to the common

motivators for traditional media usage, remuneration and empowerment emerged as unique motivators specific to social

networking sites (Muntinga, D. et al, 2011). The U&G categorization by McQuail (1983) is considered for the study.

To complete the study, this research also explores the relationship of the customer engagement with purchase intentions. Ajzen

and Fishbein (1980) have defined purchase intention as an individual`s readiness and willingness to purchase a certain product or

service. Simply understanding motivators without exploring its significant to purchase intention of the product would be of little

use for marketers.

Bagozzi & Dholakia (2006) have found that engaging to the Facebook brand page may imply of the member’s affective

commitment and loyalty to the brand. Such emotional ties have been found to have a positive effect on the intentions to purchase

and use the host-company’s products.





OBJECTIVES OF STUDY

To investigate the experience of fast food customers of Delhi with Facebook use.

To identify the level of Customers’ brand related activeness on Facebook for fast food brands of Delhi customers.

To rank the key motivational factors that influence Delhi fans to engage in Facebook pages of fast food brands.

To explore the relationship between Delhi customer engagement on a Facebook page of a fast food brand and purchase

intention for that brand.


Fans of Facebook pages of various fast food brands that are Dominos, Pizza Hut, McDonald’s and KFC are studied as unit of

analysis. Random sampling was used to conduct the survey. The sample size selected was 350. A Self-administered questionnaire

was developed. Questionnaires were given to respondents through Facebook. The survey was conducted over a 4-week period on

the Social Networking Site: Facebook. Out of 350 distributed questionnaires, 211 completed questionnaires were returned,

resulting in a response rate of 60%. The research instrument used in this study is the self-administered questionnaire containing

three sections. The first section of the questionnaire contained demographic questions related to the respondents. In this part,

gender, age and monthly expenses level were identified about the respondent. Second Section contained general experience

questions about Facebook use. The third and longest section of the survey contained questions relating to motivation, engagement

and purchase intention. To achieve the objectives, the questionnaire was developed on the bases of:

COBRA typology as a continuum of three usage types – consuming, contributing and creating (Muntinga, D. Moorman,

M. & Smit E, 2011);

Uses & Gratifications categorization (McQuail, D, 1983)

Various statistical techniques and methods such as descriptive statistics, correlation, and average ranking etc. have been used to

analyze the data.

DATA ANALYSIS AND INTERPRETATION

Distribution of Demographic characteristics (Gender, Age and Monthly Expenses) is presented in Table-2.

Table-2: Distribution of Demographic Characteristics

Variable Category Frequency Percentage Variable Category Frequency Percentage

Gender Female

Male

99

112

47

53 Monthly

Expenses

on Food

Below Rs. 1500

Rs. 1500-2500

Rs. 2500-3500

Rs.3500-4500

Above 4500

61

76

51

14

9

29

36

24

7

4

Age Below 20

20-40

Above 40

62

114

35

29

54

17


Descriptive Statistics of general experience about Facebook use of respondents is depicted in Table-3.

Table-3: Descriptive Statistics of General Experience about Facebook Use of Respondents

Variable Category Frequency Percentage

Frequent Usage of Facebook Rarely

Often

Regularly

15

23

173

7

11

82

Hours on an average spend on Facebook per week 0-6

6-15

15-24

More than 24

31

72

82

26

15

34

39

12

Number of friends on Facebook account 0-100

100-250

250-500

More than 500

23

80

59

49

11

38

28

23






Descriptive Statistics for Customers’ Activeness on fast food brand pages of Facebook is depicted in table no 4. Mean values are

used to analyze level of customers’ engagement. 12 items were used on basis of Likert scale where max = 5 and min = 1.

Table-4: Descriptive Statistics for Customers’ Activeness on Fast Food Brand Pages

Level of Customers’ Activeness Mean Standard Deviation

Consuming 4.1 0.93

Contributing 2.7 0.89

Creating 1.4 0.91


From the above table it is found that customers are mostly engaged in consuming related activities on fast food brand pages of

Facebook. They are rarely engaged in contributing and creating related activities on such pages. Hence, the Consuming type level

of COBRA is the level of Delhi customers’ activeness/engagement on fast food brand pages of Facebook.

Table-5 depicts the ranking of motivational factors that motivates customer engagement on fast food brand pages of Facebook.

Table-5: Ranking Given To Factors Motivating Customers’ Engagement

Factors Information Entertainment Social Interaction Personal Identity

Rank 1.02 2.32 3.05 3.95


From the average ranking method it is found that, customers consider ‘seeking information’ as the foremost important motivator

for engagement on Facebook brand pages. Entertainment is the second most important motivator and there is slight difference

between the relative importance of Social Interaction and Personal Identity.

Correlation analysis was done to understand the relationship between customer engagement on a Facebook page of a fast food

brand and purchase intention for that brand. For Pearson’s correlation coefficient test, Rule of Thumb was used as below in Table-

6;

Table-6: Rules of Thumb about Correlation Coefficient

Coefficient Range Strength of Association

±0.91 to 1.00 Very Strong

±0.71 to 0.90 High

±0.41 to 0.70 Moderate

±0.21 to 0.40 Small but definite relationship

±0.00 to 0.20 Slight, almost negligible

Sources: Hair J., and Money et al (2007), Research Methods for Business, New York: John Wiley & Sons Inc.

The Correlation Analysis is depicted below in Table-7

Table-7: Correlation between Customer Engagement Levels and Purchase Intention

PI Consuming Contributing Creating

PI Pearson Correlation 1 0.451 0.523 0.711

Sig. (2-tailed)

0.0000 0.0000 0.0000


The above table shows that there exist positive relationships between different levels of Delhi Customers’ engagement on fast

food brand pages of Facebook and their purchase intention. Consuming and Contributing related activities have moderate

relationships whereas creating related activities have high relationship with purchase intention.

DISCUSSION AND CONCLUSION

This study is carried out to examine customers’ engagement, living in Delhi, India, on fast food brand pages of Facebook and their

purchase intentions. While understanding general experience of the customers, it has been found that most of the student’s daily

use Facebook and they generally spend 15-24 hours per week on the social networking sites. Mostly the respondents have hundred

to five hundred numbers of friends on their Facebook accounts. To these results, it could be concluded that the respondents are

very much active on their Facebook accounts. While analyzing customers’ activeness on fast food brand pages of Facebook the





results reveals that customers are mostly involved in the activities that comes under consuming typology of COBRA. Respondents

generally watch brand related images, audios, videos; follow threads on online brand community forums and sometimes engage

themselves in fast food brands related conversations on Facebook; upload or share fast food brands related videos, audios and

pictures and rate fast food brands on Facebook. While ranking the importance of factors that motivates customers to get engage on

such pages the respondents have identified ‘seeking information’ as the most important motivators. Besides, entertainment is the

second most important motivator and social interaction and personal identity come in the next order. It was observed that there

exist positive relationship between purchase intentions of customers and their engagement on fast food brand pages of Facebook.

Where there are moderate relationships of purchase intention with consuming and contributing related activities on the other hand

a high relationship was found between creating related activities and purchase intention.

There are certain implications of this study. To strengthen the promotional activities of fast food brand, marketers may target fan

followers by making relevant news updates to sustain the informative motives of customers’ engagement. Marketers may also try

to make their brand pages more interactive and attractive so that more shares and uploads by fans could be done and fans’ friends

could become potential fans and thus potential customers. Moves should be taken to strengthen the creating activities of customers

as high relationship was found between such activities and their purchase intention. Although this research has provided some

useful implications, there are certain limitations too. At first, this study covers a small area and small sample size. Results cannot

be generalized to other areas of different culture. Second, this study employed a quantitative statistics research model and

collected data by means of an online questionnaire; future studies should incorporate qualitative methods such as in-depth

interview, focus group, or on-line participant observation, which could help provide more in-depth analysis of motivations that

lead to customer engagement.

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Prentice Hall.

2. Bagozzi, R. P., & Dholakia, U. M. (2006). Antecedents and Purchase Consequences of Customer Participation in Small

Group Brand Communities. International Journal of Research in Marketing, 23(1), 45–61.

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media use. International Journal of Advertising, 30(1), 13–46

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Interactive Advertising, 2(2).

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548. Media Effects: Advances in Theory and Research. Mahwah, NJ: Lawrence Erlbaum Associates.

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Students' Life Satisfaction, Trust, and Participation. Journal of Computer‐Mediated Communication 14(4), 875-901.

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20. Retrieved from http://www.researchgate.net/publication/233894948_Introducing_COBRAs

21. Retrieved from http://ideas.repec.org/a/eee/jbrese/v63yi9-10p919-925.html

22. Retrieved from

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*****









that third party.











(sd/-)

(Editor-In-Chief)

http://www.researchgate.net/publication/233894948_Introducing_COBRAs

http://ideas.repec.org/a/eee/jbrese/v63yi9-10p919-925.html

http://www.utwente.nl/cw/theorieenoverzicht/Theory%20clusters/Communication%20and%20Information%20Te

https://ideas.repec.org/a/eee/jbrese/v63yi9-10p919-925.html





SUCCESS STORY OF INDIGO AIRLINES: A CASE STUDY

Dr. Asha Nagendra38 L. Karthik39 Prabhudass F. J.40 Revathy M.41 Sonu Kumari42 Timri Ravi Mohan Priyadarshini43

ABSTRACT

This research paper reveals the internal and external factors, which contributed to the grand success of Indigo airlines. The

purpose of our study was to conduct an analysis on the ‘Success Story of Indigo Airlines.’ and to study the factors, which are

responsible for its success. The sample size selected was 200 respondents from Pune. Stratified Random Sampling was done

to select the respondents from the upper middle class who prefer flying frequently in Low Cost Carriers. The primary data was

collected by means of a questionnaire, which was mailed to respondents in Google doc format. The secondary data was

collected from various research papers, journals, newspapers and internet. The results of the study indicated that the services

provided by Indigo airlines with its sale-and-leaseback transactions helped Indigo earn higher profits than its competitors.

Apart from these, Indigo’s Punctuality to be on time with quick turnarounds of less than 30 minutes between flights has aided

Indigo for positioning itself with best in connectivity between cities. The benefit of such a study is an endeavor to review the

Success Story of Indigo Airlines and compare it with other competitors who failed to survive profits in the aviation industry.

KEYWORDS

Indigo Airlines, Sale-and-Leaseback Transactions, Low Cost Carriers etc.

INTRODUCTION

Aviation has always been a thorny industry, one as is said only half in jest that makes millionaires out of billionaires, but Indian

aviation has stood out as notoriously brutal owing to high taxes and costly airport charges. The year to March 2013 also happened

to be the worst in recent years due to a steep increase in fuel prices and weakening rupee. Amidst all these turmoil’s Indigo

emerged as India is largest airline by passengers carried, reported a profit of Rs 787 crore in the 2013 financial year. It stunned

many in a manner unusual for an earnings broadcast. During the year, Kingfisher Airlines shut shop and IndiGo's competitors

made losses of more than $1 billion. However, IndiGo emerged unaffected from the wreckage. The latest numbers, revealed by

IndiGo burnished the airline's reputation as the lone Indian carrier to prosper in a troubled industry.

IndiGo was set up in early 2006 by Rakesh Gangwal and Rahul Bhatia of InterGlobe Enterprises, with InterGlobe as the parent

company holding 51.12 per cent of the stake while Rakesh Gangwal’s Caelum Investments, a Virginia, and US-based Company

hold 48 per cent. Many reasons are trotted out for the success but there are some moves that IndiGo has played just right. One of

the chief reasons for IndiGo’s success is its sharp focus - “on-time performance, clean, neat aircraft, and good service”. IndiGo

started life as a low-cost carrier and has stayed there firmly, sticking to its business model even in the worst economic crises, a

move that has paid off brilliantly. Paid-for on-board meals, a single flying class with no-frills service, high aircraft utilization, and

optimal use of space (150 seats to the 190 that a full-fare airline carries) are just some of the cost control methods that IndiGo

uses.

OBJECTIVES OF STUDY

To understand the factors that contributed towards the grand success of the Indigo airlines.

To compare the performance of Indigo airlines with its competitors and derive lessons to be learnt.


Suganthlakshmi in 2011 conducted a study on “Challenges and Strategies for Successful Airline Operation.” The paper is an

analysis of Airline operations in domestic sector, which gives an overview on barrier, development, and the changes need to be

done in operations and other related functions. According to her, the basic factors that can attract more people are effective

operation, efficient service and the brand name. From the study, we understood that people select airlines based on the service and

the trust created by brand name. Diggines in August 2010 conducted a study on “Passenger Perceptions And Understanding Of

The Low-Cost and Full-Service Airline Models and the Implications for Service Strategy”. The study found out that although low-

cost airline passengers have a highly favorable perception of low-cost airlines, they are highly price sensitive and would readily

38Professor, S.I.M.S., Symbiosis International University, Maharashtra, India, [email protected] 39Student, S.I.M.S., Symbiosis International University, Maharashtra, India, [email protected] 40Student, S.I.M.S., Symbiosis International University, Maharashtra, India, [email protected] 41Student, S.I.M.S., Symbiosis International University, Maharashtra, India, [email protected] 42Student, S.I.M.S., Symbiosis International University, Maharashtra, India, [email protected] 43Student, S.I.M.S., Symbiosis International University, Maharashtra, India, [email protected]











switch to a full-service carrier should the full-service carrier offer a lower fare. From his study, we understood that, Fare was an

important issue for low-cost passengers, with full-service passengers indicating that quality and safety were more important than

the fare.


Sample size of 40 customers was chosen who have travelled through Indigo Airlines and 10 employees working in Indigo

Airlines. To test the feasibility of the research topic, two test questionnaires were prepared. These were administered to 10

respondents for the passenger survey and 1 respondent for the airline staff survey. From the results obtained, certain alterations

and modifications were made and final questionnaires were prepared. Indigo employees were interviewed to find out the internal

work environment and other factors leading to the success of Indigo airlines through the questionnaire mailed to them in the form

of a Google document. Airline passengers were surveyed to analyze and access their perception about Indigo airlines and other

low cost carriers. Secondary data was collected from Internet, articles from magazines and newspapers.

Hypothesis 1

H0 - All the low cost carriers have the same operating model and generate similar profits.

H1- All low cost carriers have different operating models and generate different profits.

Hypothesis 2

H0- The consumers are more quality conscious rather price conscious.

H1- The consumers are more price conscious rather quality conscious

RESULTS & INTERPRETATION

Table-1: Most Important Factor for Choosing Indigo Airlines

S. No. Response n=40 Percentage

1 Price 12 30%

2 On board service provided 8 20%

3 Flight’s punctuality 10 25%

4 Baggage handling 10 25%


Discussion: From Table-1 data shows that consumers choose Indigo mainly because of the Competitive prices (30%) followed by

the Flight punctuality of the Indigo Airlines. The above results are in agreement with Diggines Colin who in year 2010 also found

that although low-cost airline passengers have a highly favorable perception of low-cost airlines, they are highly price sensitive

and would readily switch to a full-service carrier as it offers a lower fare.

Table-2: Ranking given to LCC based on Select Factors (All figures are in Percentages)


Airline Ranking 1 2 3 4 5

Indigo Promotions Offered 0 15 20 40 20

Indigo Speed Of Service Offered 0 0 15 50 35

Indigo Flight Punctuality 0 0 20 30 50

Indigo Flight Cancellation By The Airlines 0 15 15 30 40

Spice jet Promotions Offered 0 10 45 35 10

Spice jet Speed Of Service Offered 0 15 45 30 10

Spice jet Flight Punctuality 0 40 40 10 15

Spice jet Flight Cancellation By The Airlines 15 60 15 5 5

Jet lite Promotions Offered 0 20 40 20 20

Jet lite Speed Of Service Offered 15 0 30 20 35

Jet lite Flight Punctuality 0 20 15 45 20

Jet lite Flight Cancellation By The Airlines 0 20 15 30 35

Air Asia Promotions Offered 0 20 20 20 40

Air Asia Speed Of Service Offered 0 15 35 30 20

Air Asia Flight Punctuality 20 15 25 20 20

Air Asia Flight Cancellation By The Airlines 20 20 30 20 10





Discussion: The above data from Table-2fulfills the second objective of study, which was “To compare the performance of Indigo

airlines with its competitors and derive lessons to be learnt.”

Table-3: Rating Given by the Respondents to the Features of Indigo Airlines (All Figures Are In Percentages)

S. No. Features 1 2 3 4 5

1 Connectivity of Indigo Airlines to various cities 0% 0% 20% 25% 55%

2 Online booking service of Indigo Airlines 0% 0% 20% 45% 35%

3 Frequency of flights in Indigo Airlines to a particular destination 0% 0% 20% 55% 25%

4 Customer care services in response to your queries 0% 0% 20% 50% 30%

5 Inflight cabin crew behaviour 0% 0% 15% 50% 35%

6 Inflight food service 0% 5% 20% 45% 30%


Discussion: From the data in Table 3, it is seen that 55 percent of the respondents favour the most Connectivity of Indigo Airlines

to various cities and 25 percent of the respondents favour the least Frequency of flights in Indigo Airlines to a particular

destination which fulfills the first objective which was “To understand the factors that contributed towards the grand success of

the Indigo airlines.”

Table-4: Different Operating Models Used by following LCC Affecting their Profit Margin

S. No. Response n=10 Percentage

1 Air Asia (Single type fleet i.e. Airbus A320) 1 10%

2 Jet lite (mixed owned- leased Boeing 737s) 2 20%

3 Indigo(sale-and- leaseback model) 4 40%

4 Spice jet(lean operating model) 3 30%


Discussion: From the data in Table 4 and Figure 4, the null hypothesis of hypothesis 1 which states that “All the low cost carriers

have the same operating model and generate similar profits” is rejected. Hence, the alternate hypothesis, which states, “All low

cost carriers have different operating models and generate different profits” is accepted.

CONCLUSION AND RECOMMENDATIONS

The objective of research was to determine the factors contributing towards Success of Indigo Airlines. It was found that most of

the passengers are more price conscious than quality conscious. The combination of operational performance and financial

engineering has amplified Indigo’s valuation.

Based on the parameters of cost, punctuality, baggage handling, queries handling, Speed of Service Offered and Less Cancellation

by The Airlines, passengers perceive Indigo as the best Low cost Airline. However, throughout the research it was seen that Spice

jet is in close competition with the leading carrier Indigo with other Airlines following. This is in agreement with Diggines Colin

who also found that although low-cost airline passengers have a highly favorable perception of low-cost airlines, they are highly

price sensitive and would readily switch to a full-service carrier as it offers a lower fare.

In conjunction with above research finding, frequency of flights in Indigo Airlines to a particular destination were the least due to

which passengers were not able to travel from Indigo. However, in terms for least waiting time to check in, passengers chose Indi

Go as most effective as compare to other airlines and this finding is in agreement with Suganthlakshmi whose study reveals that

the basic factors that can attract more people are effective operations, efficient service and the brand name.

The second objective of the research was to compare the performance of Indigo airlines with its competitors and derive lessons to

be learnt. It was found that Indigo uses six-year sale and leaseback agreements, so the airline is constantly replacing its aircraft.

This prevents the need for overall checks and major repairs. Indigo’s on time performance, with providing consistently low fares

and Courteous and Hassle free travel are the reasons for its immense success. It focused on inorganic expansion by adding a plane

every six weeks with turnaround time of less than 30 minutes.

Hence, it can be concluded that Indigo has the leanest work force with the staff trained in every aspect of customer experience at

their fly learning and development Centre. Employees are recognized as Individuals in Indigo Airlines with majority of

implementation of suggestions given by them to Indigo Airlines. This is beneficial to both employees as well as Indigo.





REFERENCES

1. Cunningham, L. F., Young, C. E., & Lee, M. (2004). Perceptions of airline service quality Pre and Post, 9/11.

2. Gilbert, D., Child, D., & Marion, B. (1997). A qualitative study of the current practices of no-frills airlines operating in

the UK. Journal of Vacation Marketing, 7, 302-315.

3. John, O’Connell, F., & George. William-Transformation of India’s Domestic airlines: A Case Study of Indian

airlines. Bedford: Cranfield University. Jet Airways, Air Asia and Air Deccan Department.

4. Saibal, Pal K., & Kapur, Vijay. Faculty of Management Studies (FMS) University of Delhi. Marketing Strategies &

Service Excellence for Low-cost Airline in India.

5. Sanyal, S. (2005). Addressing ground realities of Budget Air Travel (pp. 06), Business Line (The Hindu).

6. Shaw, S. (2004). Airline Marketing & Management (5th Ed.). Ash gate Publishing Limited.

7. Suganthlakshmi, T. (2014, July). Challenges and strategies for successful airline operation. Retrieved from

http://www.zenithresearch.org.in/images/.../2011/.../12%20T.Suganthlakshmi.pdf

8. Colin, Diggines. (2014, August). Passenger Perceptions and Understanding of the Low-Cost and Full-Service Airline

Models in South Africa and the Implications for Service Strategy. Centre for Business Management (CBM). Retrieved

from http://web.uom.c.mu/sites/irssm/papers/Diggines%20~%2012.pdf

9. (2014, September). Low Cost Carriers: How Are They Changing the Market Dynamics of the U.S. Airline Industry?

By Erfan Chowdhury. Retrieved from http://www.carleton.ca/economics/wp-content/.../he-chowdhury-erfan.pdf

10. Sujith, K. S. Nair, Miguel, Palacios, & Felipe, Ruiz. (2014, September). The Analysis of Airline Business Models in

the Development of Possible Future Business Options. Retrieved from http://wbiaus.org/4.Sujith%20Nair-FINAL.pdf

11. Retrieved from http://www.papercamp.com/essay/113021/Strategy

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intergl...

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15. Retrieved from http://free.geography2.com/ultra-low-cost-carrier-pdf-s816

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19. Retrieved from http://www.thehindu.com/todays-paper/tp-features/tp-sundaymagazine/how-indigo-escaped-the-

blues/arti...

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http://www.zenithresearch.org.in/images/.../2011/.../12%20T.Suganthlakshmi.pdf

http://web.uom.c.mu/sites/irssm/papers/Diggines%20~%2012.pdf

http://www.carleton.ca/economics/wp-content/.../he-chowdhury-erfan.pdf

http://wbiaus.org/4.Sujith%20Nair-FINAL.pdf

http://www.papercamp.com/essay/113021/Strategy

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http://articles.economictimes.indiatimes.com/2013-12-22/news/45475783_1_aditya-ghosh-indi-go-intergl

http://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/the-secret-of-indigo

http://economictimes.indiatimes.com/secret-of-indigos-consistent-profits-what-makes-it-prosper-despi

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http://www.papercamp.com/essay/113021/Strategy

http://www.thehindu.com/features/magazine/how-indigo-escaped-the-blues/article3588294.ece

http://www.thehindu.com/todays-paper/tp-features/tp-sundaymagazine/how-indigo-escaped-the-blues/arti

http://www.thehindu.com/todays-paper/tp-features/tp-sundaymagazine/how-indigo-escaped-the-blues/arti







PEOPLE’S CAR TO COOL PEOPLE’S CAR: A CASE STUDY

Dr. N. Srividya44 V. N. Sreedhar45

ABSTRACT

This paper deals with the car very much hyped in India right from its inception and manufacturing. Soon after its launch, it

faced many challenges in various aspects. It has created a revolution in the auto industry itself that everybody can afford a

four-wheeler. This paper in detail studies the manufacturing process, the reasons for its failure and the efforts of the company

to rectify that. It is actually the world’s cheapest car but faced initial failure. The features of the car, the strategies adopted by

the company to manufacture this car and how the competitors should response to it, all are discussed in detail in this paper.

Now, the company is again repositioning and revamping the car to appeal its customers. The various strategies adopted by the

company in this process are mentioned in detail. This is about the journey from peoples’ car to cool peoples’ car.

KEYWORDS

Tata Motors, NANO Car, Failure, Positioning, Revamping, Competition etc.

INTRODUCTION

Nano is the world’s cheapest car manufactured by India based Tata Motors. It was launched on March 30, 2009, with a price tag

of INR 100,000 (about US$ 2,000). The car was the result of extensive research and innovation carried out by Tata automobiles.

This car was developed using a clean sheet approach to reduce the costs and number of the components while ensuring the quality.

This case discusses the journey of repositioning Tata Nano from its image people’s car to cool peoples’ car.

TATA MOTORS

Tata Motors is the largest automobile company in India and the second largest in passenger vehicles market. It is also the leader

in commercial vehicles in each segment in automobile industry. In the global arena, the company is the fifth largest medium and

heavy commercial vehicle manufacturer and the second largest medium and heavy bus manufacturer. The company was

established in 1945 and its first vehicle was rolled out in 1954. The company is known for its better understanding of customer

needs and the ability to translate them into customer-desired offerings. Perhaps this is the reason to build a low cost car targeting

the bottom of the pyramid customers.

Infact, this is not the first time to think about a low cost car the segment. Henry Ford had promised to build a car for the great

multitude and produced more than 15 million Model Ts with unprecedented mobility for consumers. However, in India, this may

be the first time.

To fulfill his promise, Henry Ford exploited innovative product design, vendor relationships, manufacturing techniques and

distribution methods. A century later, entrants in the segment called ultra-low-cost- car market have the same agenda, to build a

car with a price tag of $2,500 to $5,000. However, this is not an easy task with uncertainty in future with frequent recessions and

the fluctuating market demand. High fuel costs, low consumer confidence and lack of sufficient capital or consumer financing

add fuel to it. However, with innovativeness and low cost solutions such a car can be made with a new and improved operating

model. Perhaps the launch of ultra-low-cost-car is the result of all these. In the end this ultra-low-cost car has ample

opportunities and of course high risks in the industry. The market players may find themselves to participate in this new emerging

market. Both the manufacturers and suppliers need to work and partner willingly to change the traditional operating paradigms.

WHAT TO DO? STRATEGIC DECISION

The competitive world is changing dramatically and permanently. Many companies are coming forward to build small cars with

less operating costs. General Motors Spark, Hyundai, Renault S.A. –Nissan, Skoda Auto, and Fiat announced various models in

India with low cost cars.

With traditional design, manufacturing and distribution approaches building a low cost car with reasonable margins and are easily

susceptible to rising commodity prices, product launch missteps and market economics. In the current scenario, two options are

there exist either in the traditional business or to participate in the emerging low cost cars business. However, as the competition

44 Post-Doctoral Fellowship Programme for Women under UGC at NCE, Bengal, Jadavpur University, Kolkata, India,

[email protected] 45I.T.Professional (IT Application and Services Delivery Management, IT Strategy Planning, Business and IT Consulting), India,

[email protected]







increases, the other players of the traditional market are also needed to shift to this market. However, the first movers always gain

more and enjoy the customer loyalty.

As the traditional marketing strategies do not apply here, the manufacturers and the vendors need to adopt a clean-sheet approach.

Tata Motors applied the same to build Nano, the world’s cheapest car with four principles.

Align Across Functions and Collaborate With Suppliers

Tata began the process with 600 closely integrated suppliers out of which only 100 remain. These independent suppliers provide

80 percent of the components and 97 percent of the vehicle is sourced in India. Suppliers like Bosch worked with Tata and Indian

engineers are employed with motorcycle rather than automobile to design the innovative low-cost components.

To deliver a car priced one lakh and to meet local market specifications, emissions and safety standards require new product

innovations and many more such as:

Forming new organizations dedicated to the creation of an ultra-low-cost car,

Redesigning processes and policies so the entire team works toward common goals,

Revamping incentive structures to manage conflicts and balance trade-off decisions,

Expanding supplier-selection criteria to include innovation and product diversification,

Collaborating with suppliers early in the design, manufacturing, engineering and assembly processes.

Invent Rather than Adapt

Tata encouraged its design and manufacturing engineers to be innovative to redesign the parts for a simple and less capital-

intensive manufacturing process, and develop a new ways to market and distribute the Nano. Infact, suppliers are forbidden to

adapt carry-over parts of the other vehicles of Tata. In some manufacturing operations, such as welding, engineers opted for

cheaper manual processes rather than the automated ones.

Reduce the Number and Complexity of parts

Tata focused on the creativity to make the components smaller, lighter and cheaper. It totally avoided non-functional and non-

essential parts. For example, Bosch adapted a smaller and lighter motorcycle starter in Nano and the wheels are attached with only

three lug nuts to reduce the cost.

Standardize at Every Stage of the Value Chain

Nano offers consumers few options and thereby has a limited impact on the manufacturing process.

Distribution Model

Tata adopted an innovative distribution model. The company planned to mobilize large numbers of third parties to reach rural

consumers, tailor the products and services to serve their needs, and add value to the core product through ancillary services. For

example, a vehicle produced in a plant is sent to a number of mini-factories. The company set up these mini-factories strategically

and central warehouse stocks the spare parts and accessories. Finally, the Nano will be assembled and delivered to the customer.

Because the low cost parts are used, the margins gained are very limited. Moreover, if the prices of the components rise, obviously

the overall cost increases. Anyway, the success depends on the sales of the car that makes the profit.

THE ALTERNATE STRATEGIES

Apart from the clean sheep approach that was adopted by Nano, there were other alternate strategies also to make the low cost car:

Introduce older models into the market,

Streamline the existing the models,

Design a new low cost car.

With the first strategy, the advantage is that the fully paid-up base of equipment and tools can be used. However, the cars do not

meet specific customer needs and are at a competitive disadvantage in relation to locally tailored products.

With the second strategy, there is a flexibility to fit low-cost prerequisites or redesign select parts to meet specific market

requirements. It offers customization but limits the potential for cost reduction.





Finally, with the third one, some manufacturers design a new car with a design-to-cost framework, but use many existent spare

parts or components. This hinder the creativity and but minimizes the engineering costs and maximizes the economies of scale.

CREATE ENTRANCE AND GROWTH STRATEGIES

For many manufacturers, India is first option to build and sell their products. Now many of the manufacturers have plans to grow

beyond India as well. The options are Asia-Pacific region, Thailand, Middle Eastern and Africa in the globe.

PROTECT AND PRESERVE MARKET POSITION AND PROFITS

To become success in this segment the manufacturers and suppliers need to employ their expertise in the higher-cost vehicle

segments, including vast experience in emerging markets, product innovations and cost structures.

Those companies, which are in traditional car making, need to protect their market share of their current brands. Risk will be

there in the following cases:

After meeting the safety and emission standards, the low cost cars are exported and distributed to mature markets.

Manufacturers adopt a new set of target prices from low cost car innovations and expect suppliers to comply.

A manufacturer enters the market but cannibalizes its existing portfolio.

A competition generates “know-how” that gives them an early-mover advantage in the market.

Whatever may be the situation the competition is inevitable and to deal the competition first they should know their capabilities,

product plans, partnerships and target costs. To become successful it is essential to maintain the volumes and to have a flawless

launch cycle. It is also important to predict that the time required to the competitors to adopt their product.

BENCHMARK THE COMPETITION

When benchmarking and competitive teardowns the companies should go beyond the competitive industry, but they to compare

with the two-wheelers and rickshaws too to get more innovative and creative ideas and to employ systematic approach.

A MEASURE OF COOPERATION, CREATIVITY AND INNOVATION

Success in any field can be achieved by mere cooperation, creativity and innovation.

THE MAKING OF TATA NANO

Tata Nano is a proposed city car — a small, affordable, rear-engine, four-passenger car aimed primarily at the Indian market.

ABOUT PLANT

Investment of Rs. 1500 cr. by Tata. Shifting cost of the plant from Singur is around 500 cr.

Total area of plant is 1000 acres out which 300 acres were allotted for assembling of various parts and rest 700 acres for

manufacturing.

AIM OF MAKING (RATIONALE BEHIND THE SCENE)

The project is to create the world's cheapest car to enable the transport of numerous Indian families by four-wheeler.

Tata Nano is not just about low-cost, but also about high technology.

Tata Nano has fundamentally implemented the 'Forget, borrow, learn' model of innovation.

The Tata realized that for a poor country like India, there was a need of an ultra-low-cost product and offered it by

leveraging the power of technology.

Once it has become successful in India, there is a potential in US also, if it is further enriched with high technology to

make it intelligent car.

USER-CENTERED INNOVATION

Tata Motors developed a car, keeping customer in mind and it was defined by the company as ‘ a comfortable, safe, all-weather

car, high on fuel efficiency and low on emissions’.





ABOUT TATA NANO

After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began development of an affordable car that

would appeal to the many Indians who drive motorcycles.

Six years after Tata Motors Chairman, Ratan Tata announced his dream of building a “1-lakh,” or 100,000 rupee (roughly $2,230)

car, the first Tata Nano rolled on stage in March 2009 accompanied by the fanfare from Richard Strauss’s Thus Spake Zarathustra.

Ten-feet-long and egg-shaped, with a roomy interior but dinner-plate-sized wheels and a lawnmower engine, the Nano gets some

56 miles per gallon—on par with the electric hybrid Chevrolet Volt. In addition, its emissions are considerably lower than the

typical Indian motorbike or auto rickshaw, which both spew noxious black exhaust.

Tata’s rivals had repeatedly claimed it could not be done. However, his engineers discovered they could save room by putting the

engine in the back, save money by sticking the battery beneath the seats, and save steel by using custom-made parts. It was more

than just a cheaper car; it was a radical rethinking of how to build one. As innovations go, the Nano was arguably a greater

achievement than the $40,000 Volt.

C. K. Prahlad, the management guru stressed the need for creating business for the bottom of the pyramid. Nearly four billion

strivers live at the bottom level and their number is too huge to ignore. He encouraged the businesses to work on the constraints

price, performance, scale, and resources to meet their demands by innovating new products. With the same inspiration, the

people’s car made mobility of people more easy and accessible for all the walks of the people. With this, the number of vehicles

on the roads may increase vehemently.

CHARACTERISTICS OF NANO

Cheap It is the world cheapest car: 1 lakh for the standard model. Due to this, it is considered as the “People’s Car”.

Fuel-efficient Engine

Its mileage is 20km/l. The luxury model has a diesel engine.

Safe

Nano features feat with all safety requirements. The car contains a strong passenger compartment with crumple zones, intrusion-

resistant doors, seat belts, strong seats, and anchorages. It had passed a full frontal crash tests. Moreover, it is a safer way of

transport than motorcycles and rickshaws.

Comfortable

Nano has been conceived for four persons. Its space is adapted according to this. Four doors enable the entrance in the car.

Seating space is generous and quite comfortable. It permits the driver to manoeuver easily. Besides, the car will be available in

two models: standard and deluxe.

Tata Nano engine in trunk is only accessible from inside as a cost reduction feature.

Tata Nano dashboard is very simple. CD player and radio are on this deluxe model. The car's exterior and interiors were designed

at Italy's Institute of Development in Automotive Engineering. The Nano CNG emax is launched in October 2013. It can run on

either gasoline or compressed natural gas. Initially, it is sold in Delhi and parts of Maharashtra and Lucknow, where CNG is

available at fuel outlets.

Ecological

Nano met all current legislative emission norms and could be upgraded to meet euro IV norms. It is less pollutant than two-

wheelers being manufactured in India.

Trendy

Both versions of Nano (standard and deluxe) will be available in several colours. The customer will also have the possibility to

choose additional accessories to adapt the car to its needs to make it look trendy and stylish.

The company made the competitors also to enter this market segment. Toyota, Fiat and Ford are also interested in making a cheap

car by investing in India. The increasing competition made them to develop a low cost car to compete with second hand car

market.

Soon after the launch of the car, expectations for the sales were not in proportion to the realized success. A study by CRISIL in

2008 said that the Nano would expand the car market by 65%. However, as of late 2012, the sales in the first two fiscal years are

about 70,000 units though Tata had aimed at 2,50,000 per year.





Actually, it was anticipated that its 2009 debut would greatly affect the used car market. The prices dropped 25-30% prior to

launch and the price of Maruti 800, the nearest competitor to Nano, fell by 20% immediately after the launch. The effect on the

prices of its substitutes is unknown. The Tata’s Chairman told that in spite of initial problems, the car has high potential in future.

Though the price is fixed as one-lakh rupees, few people could afford the car compared to the alternative of motorcycles.

However, due to increase in material costs, the price is raised to 1.5 lakhs by 2012. Still it is cheaper than the Volkswagen Beetle.

The second generation of Nano is expected to be sold in US by 2015. The original car cannot be sold legally in US or in grey

market import until 2034. Though Tata can sell the car through its Jaguar Land Rover division of Tata, it does want to sell through

Jaguar.

THE PROBLEMS SOON AFTER LAUNCH

Nano has faced three problems after it launch:

Nano users reported half a dozen incidents of smoke and fire. Though the company refused the recall of the cars, it

asked for the retrofit the exhaust and electrical system in the car. They extended the warranty of all cars including sold

ones to four years from eighteen months in early December 2010. However, the company has re-engineered the car to

fix the problem and now there were no instances of complaints in this case.

The pay-first, drive later booking model adopted by the company attracted a bunch of customers for the car is not

intended for. Of the 2.06 lakh booking, the lion share is of the urban consumers who wanted to buy as a second car.

However, as the initial excitement wore-off, the sales dipped.

The distribution strategy adopted is a wrong model, for which the car is aimed at. The lower income people were

apprehensive to walk into large Tata Motors showrooms.

The first model of the car does not have air conditioning, glove box no stereo with thin padded seats that do not adjust

and single windshield wiper.

Few customers did not like Nano because of the sound of the engine, which resembles with an auto-rickshaw.

The car was detained in the hilly areas for the reason that it was underpowered for driving in the mountains.

Nano was also rejected because of its bad positioning as “Cheap” car and people expect many things from it to become

their first car. India’s middle class want cheap car but it should not look like cheap and they are willing to pay even

more to the car, which belongs to upmarket.

Sales

Nominal factory output is 250,000 pa.

FY 2009-2010 30,000 approximate.

FY 2010-2011 70,432

FY 2011-2012 74,527

FY 2012-2013 53,848

FY 2013-2014 first half (April to September) 10,202

Graph-1


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Sales

2009 - 2010

2010 - 2011

2011 - 2012

2012 - 2013

2013 - 2014





REVIVAL PLANS

Particularly two moves were taken out for the revival of the Nano:

Tata Motors set up 210 ‘F-Class showrooms’, each only about 500 sq. ft. in size and stocking just one car in smaller

towns and hired 1,200 people to man them.

It also tied up with Big Bazaar to gain attraction from the normal customers who visit the retailer. The Big Bazaar gets

a footfalls about 150 million every year. The touch-and-feel experience of the car parked in the outlet also accelerated

the decision making process in smaller towns where the retailer has about 70 outlets in these places.

Both the ideas are aimed to take the car closer to the customers to have a closer look and to connect with them

geographically and psychographic ally. Both have worked out well.

However, the industry watchers contribute the sales growth to the incentives offered to the Nano dealers. The dealers

are supported to carry more stocks and are offered a 30-day interest-free credit against a cash-and-carry model for its

other models.

Tata Motors focused on tier-II cities as it natural market, but for rural market, the vehicle had to be more rugged out.

Tata Motors has improved the financing options also and announced new measures like a four-year or 60,000-kilometre

manufacturer’s warranty at no extra cost and an option to avail a comprehensive maintenance contract for Rs.99 per

month.

Despite of all these measures, the sales grew only 13% after a 30% growth recorded in FY11. The Nano is still behind Alto, Swift,

Wagon R and even bigger cars like Dzire. The sharp deceleration of Indian economy is also a reason for poor sales of the car. As

the sales are low, Tata motors have been laying off workers, cutting production to suit the sales. Its factory in Gujarat is lying

down with idle capacity and many Tata dealers are frustrated across the country.

Though it has these drawbacks, the car has received several awards such as:

Awards

2010 Business Standard Motoring Indian car of the year,

2010 Bloomberg UTV-Autocar car of the year,

2010 Edison Awards, first place in the transportation category,

2010 Good Design Awards in the category of transportation.

Tata is optimistic in Nano and spent close to $400 million in developing the vehicle and hundreds of millions more building the

factory capable of manufacturing 15,000 to 20,000 cars a month. Now, Nano is remaking the “people’s car” into the “cool

people’s car”. It has given the car itself a face-lift, adding a stereo sound system with four speakers, dual glove boxes, improved

interiors with refurbished exteriors, hubcaps and chrome trim, raised the price and started a new marketing campaign to give it

more cachet.

Tata is trying to target buyers less than 35 years age and ‘a little more aspirational than before’. It is showing in TV the young

entrepreneurs dancing with a tagline “Celebrate Awesomeness”. Company hopes that getting more young people drive the

demand for their other cars as well as 35 percent of their customers are repeat customers. However, the changing the peoples’

perceptions will take time. The whole journey of people’s car to cool people’s car is based on perceptions of the people, which do

not change overnight.

REFERENCES

1. Retrieved from www.tatamotors.com/July_Offer

2. Retrieved from www.slideshare.net/.../tata-nano-brief-history-and-case-study-analysis-14701108.html

3. Retrieved from www.piyusharunkumar.wordpress.com/…/tata-nano-a-study-on-business-challenges-in-india

4. Retrieved from www.studymode.com/essays/Tata-Nano-Case-Study-521174.html

5. Retrieved from www.icmrindia.org/casestudies/catalogue/Operations/OPER078.htm

http://www.tatamotors.com/July_Offer

http://www.slideshare.net/.../tata-nano-brief-history-and-case-study-analysis-14701108.html

http://www.studymode.com/essays/Tata-Nano-Case-Study-521174.html

http://www.icmrindia.org/casestudies/catalogue/Operations/OPER078.htm





6. Retrieved from www.blogs.hbr.org/2011/01/learning-from-tatas-nano-mista/-

7. Retrieved from www.scribd.com/doc/21385074/Case-Study-on-Tata-Nano

8. Retrieved from www.thehindubusinessline.com/…/case-studies/…tata-nano/article5474975.ece

9. Retrieved from www.prezi.com/qv78ehssz-rx/case-study-tata-nano/

10. Retrieved from www.hbs.edu/faculty/Pages/item.aspx?num=38716.html

11. Retrieved from www.chatbhandaar.brainmaalish.com/tata-nano-failure-due-to-perception/

12. Retrieved from www.slideshare.net/narendrapatankar/positioning-iof-tata-nano

13. Retrieved from www.ask.com/Case+Study+Of+Tata+Nano

14. Retrieved from http://toostep.com/insight/the-strategy-for-ulcc-what-works-what-doesn-t

15. Retrieved from http://en.wikipedia.org/wiki/Tata_Nano

16. Retrieved from http://letweknow.com/tata-nano-the-indian-first-cheapest-car-in-the-world

17. Retrieved from http://www.authorstream.com/Presentation/dj9011643715-784603-tata-nano

18. Retrieved fromhttp://www.worldpolicy.org/journal/fall2011/thus-spake-nano

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http://www.blogs.hbr.org/2011/01/learning-from-tatas-nano-mista/-

http://www.scribd.com/doc/21385074/Case-Study-on-Tata-Nano

http://www.prezi.com/qv78ehssz-rx/case-study-tata-nano/

http://www.hbs.edu/faculty/Pages/item.aspx?num=38716.html

http://www.chatbhandaar.brainmaalish.com/tata-nano-failure-due-to-perception/

http://www.slideshare.net/narendrapatankar/positioning-iof-tata-nano

http://www.ask.com/Case+Study+Of+Tata+Nano

http://toostep.com/insight/the-strategy-for-ulcc-what-works-what-doesn-t

http://en.wikipedia.org/wiki/Tata_Nano

http://letweknow.com/tata-nano-the-indian-first-cheapest-car-in-the-world

http://www.authorstream.com/Presentation/dj9011643715-784603-tata-nano

http://www.worldpolicy.org/journal/fall2011/thus-spake-nano


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