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- International Journal of Management (IJM)
Volume 9, Issue 2, March–April 2018, pp. 103–111, Article ID: IJM_09_02_012
Available online at
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Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication
A STUDY ON POTENTIALITY OF VIRTUAL
SHOPPING CONCEPT FOR SELECTED FMCG
PRODUCTS IN BANGALORE
Saravana Kumar. S
Ramaiah Institute of Management studies, Bangalore
ABSTRACT
The recent development of technological wave, in particular to virtual technology,
has brought a new era in shopping activities. After, the successful business of e -
commerce the shopping is changing which results in the emergence of virtual
shopping using smartphones. Current research is chosen to investigate how
consumers adopt technology in diverse virtual environments. QR (Quick Response),
disseminate information about the products and services of the next step to bar code
and use them before they buy online. This research aims to discuss the future
directions for how virtual shopping using smartphones will change shopping
behaviour in Bangalore. Based on the scope of utilizing virtual technology in
shopping practices the concept is tested using a data from selected sample of
Bangalore population. Research shows that customer shopping is simple and
convenient. It also shows the concept is very useful for office goers and frequent
buyers which have great demand in Bangalore. Though buyers are interested still
sceptical with the issues faced when purchased online like, security, product quality,
originality, warranty etc. The future online shopping is bright especially of travel,
books, electronic gadgets, shoes, and gifts. On the basis of these findings, the younger
generation's virtual shopping idea and the profile of potential buyers are examined. It
id been concluded that middle-aged customers are more attracted for greater
shopping experience by scanning QR code which eliminates long-time standing for
groceries and saves money and time by simply scanning.
Keywords: Virtual Shopping, What is virtual shopping, Virtual shopping in India, Virtual
Shopping Strategies, Virtual Shopping 2018, Virtual shopping in Bangalore, Consumer
Behaviour towards Virtual Shopping.
Cite this Article: Saravana Kumar. S, A Study on Potentiality of Virtual Shopping
Concept for Selected FMCG Products in Bangalore, International Journal of
Management, 9 (2), 2018, pp. 103–111.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=2
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- A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in
Bangalore
1. INTRODUCTION
Virtual shopping is Internet-based advancements that impact the flow of consumer decision
making. This tool ensures how to approach various strategic issues to change the inventories
of companies, enter new markets to draw new customers, and promote advertisements in
competing environments. Before shopping closely with virtual shopping, it is necessary to
consider traditional shopping, the company produces a product and do market testing before
they enter into sales in a particular market. Now it is possible to use point-of-sale-scanner data
for money and manufactured products to monitor the total sales and market share of products.
The product is sold in the consumer group in a natural and competitive environment.
Unfortunately, the process is sluggish and expensive. Innovative Hunger in South Korea,
Tesco is now a controversial virtual shopping shop where shoppers can browse and sort basic
items using their phones. They call it ‘augmented reality’.
The creative technique built up a virtual store, where customers hold a list or a product
enters up to mobile webcams in the aisles which produce a life-size 3D projection of items
and read their specifications prior to making a buy. More than 500 of the most mainstream
items are displayed on the wall. Each has a barcode/ QR code shopper’s scan, using their
smartphone customers can place the order and products are delivered at home. More than
600,000 customers downloaded the application in only four months. Tesco isn't the only
company which explores how to convey developing innovations to snatch the online dollar.
Ocado, the greatest free online food merchant in the United Kingdom, has presented a
comparable trial display at the One New Change shopping center in London's money related
area and Chinese retailer Yihaodian, has created 'shopping walls’ in 70 subway stations
around Shanghai. The innovation has been enhancing after some time, and because of mobile
phones, marketers are beginning to see virtual stores are executed - in promoting and
shopping made conveniently. One of its augmented reality offerings is software it calls
'Virtual Mirror'. This is an innovation that allows customers to experiment with different
clothes or groceries from the comfort of one’s home, with the help of a webcam, says Hash
Media founder Harshit Lalpura.
It has been consistently established that in today’s world the internet and applications
plays a significant role in the people lives. There is an increase in consumers who take
product decisions on their own, obtaining information from different sources. In India, the
recent increase in usage of applications and smart phones has given opportunities for
organizations to tap into the previously inaccessible population of customers. Moreover,
organizations have been constantly paying attention to the client opinions and their
preferences, which can be readily available on smart phones. The various activities taking
place on social interaction with different individuals on different websites can influence the
consumer buying decisions. Consumers take many product decisions daily and they would
like to gather the sources of information and advice from the reference groups. However, for
FMCG goods consumers take their own decision and buy based on their previous purchase
experience. Hence, for daily routine products consumes use limited decision making process
and thus the purchasing of product made quicker and easier. Therefore, the analysis of
consumers buying daily or FMCG products and enhancing the purchase faster and deliver at
door step will give an essential view for the companies. This will help in improving the
relationship and loyalty with consumers by using virtual shopping as a tool that do not even
require a lot of penny. This analysis covers the population of Bangalore, where an ever
changing multifarious factors that influence the behavior of consumers, effecting very quickly
their buying decisions in the age group of 15-40 years with regard to purchasing product
through virtual shopping. The different attitude has been analyzing which includes buying
habits, buying interval, purchasing process, selection of the FMCG products. It is important to
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know how the virtual shopping can create a change in consumer buying behavior and
products preferences of consumers with regard to FMCG.
Marketers realize that in the present competitive condition, they have to create ideas that
leap forward the customary approach to convey and attracting the customers. To avoid the
benefits of recent innovations in user interface technologies, companies need to understand
the technology as part of their shopping process. Innovation and innovative advertisers in
mobile usage attracted more information on customers and by providing easy access to
shopping, advertisers focusing on customer’s interaction. Addition to this, the virtual-
shopping concept is developed and tested in many countries. This study will enable managers
to create strategic choices such as new products, promotions, packaging, merchandise, etc.
2. LITERATURE REVIEW
According to Adele peters, there are some advantages to an optimistic view for online
shopping: If a company does not build infrastructure in a store, it uses heat inside the cool,
light, and more efficient warehouse, more efficient in saving personal reserves for fuel storage
and distribution vehicles than individual customers driving to store.
According to Sreedhar Raamaswamy, these are the five ways retail has changed and
how business can adapt the shopping technique based on the traditional shopping and modern
shopping such as shoppers know as much as salespeople, retailers can deliver personal,
relevant suggestions at scale, mobile devices drive foot traffic to stores etc.,
According to L’chen, virtual stores will provide imperative contributions to the range of
business-to-consumer (b-to-c) e-commerce and lead the improvement of more meaningful and
effective procedures for virtual stores.
Raymond r burke says in his study that technology has given a great innovation and
convenience for shopping through the online shopping and virtual store. Customers are
generally satisfied with the convenience, quality, selection and values offered by the seller
these days.
The above review results that the proposed system can efficiently determine the virtual
store concept as a success factors and the consumer acceptance. Virtual shopping provides
great efficiency in the retail value chain, and their existence has tremendously paved the way
for the diffusion of electronic commerce.
Research Gap: Despite the fact that India is in succession with other developed countries,
it is still not utilizing the technological resources efficiently. Some of the reasons, which
attracted companies to the world of smart phones and applications, were low cost of data,
freedom to the companies to offer large number of smart phone users, easy access to user
centric spaces and providing huge amount of user content and communicating with users
through open channels to gain insight into the psychology of the consumers. Although, the
companies have managed to optimize the processes to gain maximum advantage from smart
phone users, considerable research has covered various aspects of the phenomenon. However,
adequate research findings are not available with regard to the challenges faced in the
practical world. This present research is believed to fill the gap by studying consumer’s
orientation, expectations, requirements and interests towards utilizing virtual shopping
concept to attract more customers. This study is made from the perspective of marketers using
various factors like motivational, risk and purchasing factors on virtual shopping for FMCG.
For empirical study, selected FMCG products are chosen and aim to examine “potentiality of
virtual shopping concept for selected FMCG products in Bangalore”.
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- A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in
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3. CONCEPTUAL FRAMEWORK
Figure 1
4. RESEARCH METHODOLOGY
Research methodology is defined as a systematic way of solving the research problem
(Kothari, 2004), involving describing the relevant methods and techniques employed during
the process of study. The present chapter elaborates upon the research design adopted by the
researcher, during the addressal of problem at hand. The pre-defining of notions related to
process of research is crucial, so as to guide the study along appropriate lines and arrive at
significant conclusions. The research design was adopted so as to satisfy the proposed
conceptual framework and perform appropriate testing of proposed hypothesis. As a general
rule, a positive research approach generally follows a detective approach, but the inductive
research system is usually linked to a phenomenon theory. Thinkers have also emphasized on
the selection of the particular philosophy positivism that it is an independent approach and is
objective. Positivism assists in offering independent opportunity to the analyst to collect
proper data as per the need of the research topic. Hence deductive approach would be selected
with the positivism philosophy. One of the initial requirements of a research is to decide the
research philosophy on which the research methodology shall be based. On conceptual
grounds there are a diverse range of research philosophies namely positivism, interpretivism,
pragmatism, objectivism, constructionism and realism. Therefore in order to address the
objective of the proposed content of research the scholar has decided to select interpretivism
as the research philosophy of this study. Based on this particular philosophy the scholar has
decided to analyze the research data and interpret accordingly.
The sample selection in quantitative research has to facilitate the drawing of inferences
about the selected group, as opposed to gain an in depth knowledge of the issue in qualitative
research. The respondents were asked to rate the following factors:
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• Use of online shopping
• Visiting of virtual store
• Commodities they prefer on online shopping
• Idea about online shopping
• Problems on online shopping
• Level of agreement to various factors
• Shopping of FMCG goods through virtual stores
• Working of virtual store concept in Bangalore city
To facilitate the collection of data from a large universe of population, the technique for
sampling was well-defined, to gain information specific to the aim of the study. The research
investigation was aimed at 15 – 40, based in Bangalore, who regularly access the smart
phones and application platforms, and consequently purchase FMCG products like milk, soap,
groceries, vegetables, etc., The non-random convenience sampling technique was employed
for the purpose of primary data collection, as it allowed the specific members, of the target
population to be included in the research. The convenience sampling allowed for easy and
affordable collection of data, suiting the geographical proximity, accessibility, and availability
of the subjects. Bangalore is considered as one of the best city for shopping and more
diversified age group of people. The city’s climate makes it one of the ideal places for
shopping. The city is chosen for the reason that there are lots of people who are working and
will be busy with their jobs and hence forth they can do shopping by sitting at their working
places. People in this city are also technologically updated and can find it easy in shopping.
The sample size denotes the number of samples used for conducting the study. The total
sample size consists of 150 people.
Structured questionnaires were distributed to people in North Bangalore City. The
questionnaires are filled in front of researcher himself. The researcher took permission from
the people and requested to fill the form by explaining the purpose of the survey. Secondary
data consist of data retrieved from College Library database, such as articles, journals,
literatures in addition to books barrowed from University library or retrieve from Google
Books and Google Scholar. These materials would facilitate this research study. In addition
they would be critically interpreted with caution in order to avoid creating a false impression
with the originator’s observation or view. The researcher checked and organized the collected
data daily for the completeness and accuracy. The data subjected to suitable statistical
analysis using descriptive Statistics like frequency proportion mean and standard deviation
and inferential analysis too. The coding and categorization was done before entry. Data
preparation includes the editing; coding, transcription and verification of data in order to
remove errors that may have occurred during the data collection process The data collected
through interview (structured questions) entered in excel form. The data from the
questionnaire was transferred for examination using two computer programs, viz. Microsoft
Excel and SPSS. The prime objective of the study was to understand the variation in the
importance of the factors given by different age and occupation. Among which almost of the
respondents are students. One-way ANOVA has been applied for the data analysis &
conclusions. The approach was chosen to understand both main independent impacts as well
as interaction effects of variables - age and occupation.
5. HYPOTHESIS TESTING
H0: There is no potentiality to implement virtual store in Bangalore.
H1: There exists high potentiality to implement virtual store in Bangalore.
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Table 1
ANOVA - ONE WAY
Source of Variation SS df MS F P-value F crit
Between Groups 7917.911 4 1979.478 25.56914 1.46355E-10 2.605975
Within Groups 3096.667 40 77.41667
Total 11014.58 44
The one-way analysis of variance (ANOVA) is used to determine whether there are any
statistically significant differences between the means of two or more independent (unrelated)
groups (although you tend to only see it used when there are a minimum of three, rather than
two groups). As shown in the above calculation using SPSS, the calculated Fcri is less than
Fstat. Fcri = 2.60< Fstat = 25.55. So therefore null hypothesis is rejected and hence there is
high potentiality is there in implementing virtual store concept in Bangalore city.
6. FINDINGS
Findings shows that Internet consumption has increased over the years and leads to an
increase in online shopping and also shows customers' feedback and perception on online
shopping. Communication still forms the major activity among the large number of online
shoppers as 32% of regular online shopper use internet for communication as compared to
shopping.
More males are shopping online as compared to women online shopping has influenced a
positive relationship between education and income levels based on effective online shopping
behaviour. An important promotional factor that influenced online shopping was set for a time
saving and cost-effectiveness. Regular online shopping is less affordable for those consumers
who consider convenience as a major motivating factor during the purchase. But online
retailers should try to distinguish their products and services simpler. Marketers have to come
up with efficient ways in industry will increase the demand for its products like increasing
more space and convenient shopping.
One of the main concerns with online shoppers was privacy and quality of product
delivered. There was a problem with 45.2% of buyers felt that the problem of buying cheap
quality products, 30.4% of them felt the problem of damaged products, 23.5% awaiting
problem in delivery and 7.5% products dint not delivery and other problems faced by 16.5%.
Another reason that hindered virtual shopping is customer experience is more likely to be
enjoyed from traditional shoppers, such as interacting with salesman, and salutation. Some
products like grocery and apparel does not apply for virtual shopping, because the touch
factor is main thing in shopping for these products. There are many benefits to actually sell a
product virtually and send to customers such as, including market consumers around the
world for Internet users, the physical store is limited to the local market. 31.7% of those who
like to buy clothes online, 13.1% prefer groceries, 41.4% electronic gadgets and the rest likely
to buy other things in online. Future virtual Shopping have more potential, especially for
books, electronic gadgets, crane and gifts.
Expansion in an online business is easy. Through the growth of affiliate marketing,
perhaps by increasing volume or space use, a business can increase its ability to meet the
needs of its products. Expanding in other segments of the physical store includes shops, or
franchising, and opening more expensive rented stores and storage, or displaying products
cost will be more than mail order and deliver.
An online business gives more flexibility to adjust the market. Local store in larger cities
with huge showroom and fewer customers can change their customer’s perception, and if they
are operating from smallest building with few products in store affects customer demand in
few years. Whereas in online business, customers can not know fewer or thousands of
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business customers. So that, 47.9% agreed that virtual shop concept will work in city of
Bangalore, 25.4% disagreed and 26.7% neutral. So there is more opportunity to implement
virtual store concept in Bangalore city.
7. SUGGESTIONS AND CONCLUSION
Shopping can be a trial for a few, and it's a generally held conviction that numerous man can
think that it’s to a greater degree a task than ladies. Intending to enhance the experience for
men, Hointer added QR codes to their pants so clients could essentially filter the code so as to
get their desired size conveyed to a changing room prepared for them to try on. This
streamlined procedure spares customers from wading through piles of garments to locate their
size, at last accelerating a shopping trip for the individuals who might rather be somewhere
else. Specialists have seen applications that reward their clients with motivational expressions
when they work out. Nonetheless, Nike Mexico made this a step ahead with their Facebook
sell off, Subasta de Kilometers, which enabled sprinters to gather points for each kilometer
run and after that utilization these points to offer on Nike-marked running rigging in the
auction.
Avoiding the lines is an engaging prospect for some and in light of those retailers utilizes
customers email delivers to convey, as opposed to the conventional home address. Scientists
have seen those engaged with retail alter amazingly to the increasing online world. By
showing Facebook 'likes' on little screens implanted in articles' holders, the retailers
demonstrated the expanding count of 'likes' distinctive things of apparel were getting from
web customers. The expectation was that endorsement from the online group would urge
customers to buy a thing of apparels.
What the researcher are seeing today is just the start. Before long it will be hard even to
characterize online business, not to mention gauge it. As it develops, computerized retailing is
rapidly transforming into something so unique that it requires another name: Omni channel
retailing. The name mirrors the way that retailers will have the capacity to collaborate with
clients through endless stations—sites, physical stores, stands, regular postal mail and lists,
call focuses, online networking, cell phones, gaming supports, TVs, arranged machines, home
administrations, and that's only the tip of the iceberg.
Advanced retailers drive development by spending intensely on selecting, wages, and
rewards to draw in and hold top specialized ability. They were additionally among the first to
use distributed computing (which drastically brings down passage and working expenses) and
to improve showcasing productivity through informal organizations and web based
promoting. In the interim, conventional retailers are slacking gravely. Online deals represent
fewer than 2% of income at Walmart and Target. Nor are conventional retailers spearheading
computerized advancements in different channels, for example, versatile shopping and call
focuses, or flawlessly coordinating these advances in their most critical channel—physical
stores. Conventional retailers live amazing changes in same-store deals, in-store deals per
work hour, and remuneration frameworks in light of such measurements. That was fine when
online deals were 2% to 3% of incomes, yet the entire framework goes into disrepair when
that number achieves 15% to 20%.
8. CONCLUSION
It is to conclude that the Internet is an aggregation of new media that have a monstrous
potential to be a notable channel for electronic business. Virtual shopping takes after
customary in-home shopping in that the customer makes purchases without physically
heading off to a store. The Internet offers intends to disperse showcasing information like
customary direct marketing, similar to catalogues and focused on targeted direct mail. The
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- A Study on Potentiality of Virtual Shopping Concept for Selected FMCG Products in
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Internet has other drawing in properties too. It is modest, and it helps individual
communication between the dealer and the shopper.
It is valuable for distributing digital products, and it can abbreviate the time between
purchase decision and delivery. In addition it gives the customer certain extra benefits, like
the ability to compare and discuss products. The general web user is better suited to the
common household, at least to the financial collection: both are well trained, have higher
income and employability status. Moreover, the average Internet user is a male aged 20-40
years, which is an extremely dynamic group at in-home shopping.
In an empirical survey, Virtual shopping is another idea among the general population in
the world. Additionally, with the expansion utilization of smart phones among them and
people need of having a casual life alongside having everything readily available, makes the
world an iconic place for receiving such an innovation. This creative administration which
takes away the crowded shops in ends of the week, long checkout lines, and overwhelming
bags is accepted to be the following innovation revolution. Besides, it is imperative to
examine how the buyers frame attitude and practices towards virtual shopping since customer
disposition towards it is a noticeable factor influencing genuine purchasing conduct.
At the point when advertisers get the opportunity to comprehend the variables influencing
virtual customers' conduct then it make huge opportunity for the marketers to build up the
showcasing techniques likewise and transform the potential clients into actual one. Hence,
this paper inspected consumers’ states of mind toward virtual shopping in the world, featured
virtual shopping benefits, and decided the profile of potential virtual customers.
It is been reasoned that that virtual shopping thought attracts buyers from youthful ages as
they search for the sake of entertainment and explore new shopping experience, and
furthermore for customers from middle age, as influencing buys by scanning the QR which
saves time and cash putting something aside for the individuals who hate remaining in long
queues in stores and to buy basic supplies. This supports the advantages behind virtual
shopping which is to spare time and reduce the payment burdens. Though buyers are
interested still sceptical with the issues faced when purchased online like security, product
quality, originality, warranty etc. The future online shopping is bright especially of travel,
books, electronic gadgets, shoes and gifts.
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