AWEshkar September 2017

Vol.
XXIII Issue 2 September 2017 ISSN 0974 – 1119

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aWEshkar
A Peer Reviewed Research Journal
S. P. Mandali’s
Prin. L. N. Welingkar Institute of Management Development & Research
Vol. XXIII Issue II

September 2017
Editor
Dr. (Ms.) Ketna L. Mehta
a WE shkar
Vol. XXIII Issue 2 September 2017 ISSN 0974 – 1119

Managing Editor
Prof. Dr. Uday Salunkhe
Editor
Dr. Ms. Ketna L. Mehta
Editorial Board Members

Dr. Anil Naik, Dr. P. S. Rao, Dr. Sunanda Easwaran, Prof. Anuradha Mahesh, Prof. Sumeet Manerikar
Peer Review Referee Board
Dr. P. V. R. Murthy Dr. Suresh Govindaraj

Founder, Exclusive Search Professor, Rutgers Business School,
Rutgers University
Dr. Girish Prabhu
Dr. Swami Manohar
Director - UBD Innovation,
Founder and Managing Director,
Strategic Business Development, Srishti Labs, Srishti School of Art,
Prof. Harsh Mohan

Dr. Snehal Shah
Program Chair, Human Resource Leadership Program, School of Professor, S. P. Jain Institute of Management & Research
Inspired Leadership
Dr. B.V. D. Rao
Dr. Maya Reddi Managing Director and CEO, 3 C Consultants P Ltd.
Professor of Management, Berkeley College
Dr. A. Jagan Mohan Reddy
Dr. G. Ramesh Associate Professor (HR), Institute of Public Enterprise,
Osmania University Campus.
Editorial Advisory Board
Dr. Arvind V. Phatak, Ph.D. Dr. Muhammad Ehsan Malik

Laura H. Carnell Professor of General & Strategic Management and Director, Institute of Business Administration,
International Business, Lahore, Pakistan
Fox School of Business and Management, Philadelphia, USA
Mr. Punya Prasad Neupane
Dr. Makarand Gulawani Executive Director, Nepal Administrative Staff College,
Instructor, Grant MacEwan University, Kathmandu, Nepal
Edmonton, Canada
Prof. G. M. Chowdhury
Director, Institute of Business Administration,
Dhaka, Bangladesh
Printed by Sugam Mudran, 110, Prospect Chambers, Dr. D. N. Road, Mumbai - 400 001, Maharashtra, India.
A Refereed Research Journal with an eminent advisory board, edited by Dr. (Ms.) Ketna L. Mehta, Editor and Management Advisor.
aWEshkar is a bi annual journal. WE stands for Welingkar Education and Aweshkar stands for creating new knowledge for the benefit of
the academic & corporate community. Published by S. P. Mandali’s Prin. L. N. Welingkar Institute of Management Development &
Research
aWEshkar (vfo”dkj) in hindi means Invention. The journal publishes Research Papers, Research Articles, Case Studies, India Focused
Research, Management Ideas, Management Games, Book Reviews and Poems.
aWEshkar is included in:
 EBSCO Database, USA.
 Ulrich’ Directory of Periodicals, USA.
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A Peer Reviewed Research Journal 2 aWEshkar Vol. XXIII Issue 2 September 2017 WeSchool
Contents
Page No.
EDITORIAL
Ketna L. Mehta 5
MANAGEMENT IDEAS
Sustainability Key Driver For Business 7
Niranjan Khatri & Sriram Kuchimanchi
INDIAN ETHOS
Customers and Humans 12
Suresh Lulla
Being a Grateful Designer 13
Sudhir Sharma
LEARNING CURVE
Education needs to be our focus and how! 14
Rimmi Joneja
Change Is Not The Only Constant 15
Shahnaz Pohowala
Is Interest A MUST For Learning ? 17
Dharmendra Rai
CASE STUDY
Brand War “Patanjali Vs Global and Domestic FMCG Rivals 18
Prof. Indu Mehta
Project Management For Public Goods – The Case Of Indian Railway 38
Dr. Mahesh Gadekar
RESEARCH
Developing A “Theoretical Toolbox” For The Concept Of Consumerism 45
Dev Narayan Sarkar & Dr. Kaushik Kundu
'Mobiles, Email, Web-chats,... Everywhere. How Do Organized Retailers
Unleash Their Potential When Battling E-tailers?' 67
Suja R. Nair & Harikrishna Maram
Dimensions Of Store Choice In Purchase Of Apparels 80
Dr. T. Frank Sunil Justus & A. Albert Prabakaran
Influence Of Culture On Gender In India 90

Uma C Swadimath & Prasanna B Joshi
Geriatric Care In India: Challenges And Opportunities 100
Aniruddh Bhaidkar
A Study On Preferred Investment Avenue Among Senior Citizens With
Reference To Indore City, India” 104
Sneha Pungalia, Dr. Vinay Goyal & Dr. Manish Kant Arya
The Encumbered Growth of E-commerce In India: Can We Help? 114

Himanshi Agarwal, Dr. Shailja Dixit
Digitalization & Customer Perception towards the Banking Services 133

Deepa Joshi & Sapna Parihar
Innovative Practices In Marketing 142

Shivakumar Upavasi
YOUNG MINDS
IOT - A Platform to Manage Crowd and Queues 148
Aniket P. Bhisikar
RESEARCH COMMUNICATION
Data Analytics 152
Prof. Sumeet Manerikar
BOOK SUMMARY & BOOK REVIEWS

The Design Journey of Prof. Sudhakar Nadkarni 153
Born To Fly 154

Dr Ketna L Mehta
Making IT Big 155

Dr. Shweta Vats
POEM
A Present For The Future 156
Swar Kranti
Editorial
Dr. (Ms.) Ketna L. Mehta, PhD

Email : ketna.mehta@welingkar.org
'Nano Thoughts on Management'
Guidelines for Authors
Peer Reviewed Research Journal - aWEshkar
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Dr. Ms. Ketna L. Mehta,

Editor & Management Advisor
S. P. Mandalis’s Prin. L.N. Welingkar Institute of Management Development & Research,
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MANAGEMENT IDEAS
Sustainability Key Driver For Business
Niranjan Khatri* & Sriram Kuchimanchi**
Introduction Today, many leading hotel chains in India

have taken sustainability stewardship as a
The Indian hotel sector growing at 8% is at key focus area. However, a large percentage
the brink of a rapidly evolving hospitality of non-chain star hotels in the country are
industry, with the democratization of yet to jump on the bandwagon.
domestic travel and shifting customer Sustainability is not only a matter of
demographics. This period of lull is perhaps necessity but also an avenue to realize
the best time for hotels to adopt financial, social as well as branding
sustainability, which is quickly becoming potential for hotels of any size.
the competitive advantage of the future.
While sustainability encompasses
Sustainable hotels are considered as industry economic, environmental as well as people
leaders and are perceived as ethical, impact, this article is focused on resource
responsible and more trusted service consumption analysis. A few popular 5-star
providers to their conventional hotels in Bengaluru shared data with us,
counterparts. In a market study of travelers which led to the following observations.
in the Asian subcontinent, it was found that
66% of Asian travelers were happier staying Identifying Problem Areas
at environmentally friendly hotels and
vouched to stay there again. 62% of the Measuring operational costs as part of
travelers said that they would even pay 10% overall revenue at hotels is the first step
more than other hotel rates. Today's towards change. Based on our analysis and
conscious global travelers are found to findings, there were no surprises and it was
connect better with consciously responsible found that energy and fuel hogged the
hotel brands. largest chunk of operational expenses across
all hotels as shown in the Graph-1 below.
The hospitality industry is probably the Close to 25% of the operational expenses
most dependent and affected by climate. was on energy and fuel. Though there was a
That being said, it is ironic that less than marginal dip in energy consumption year on
20% of Indian hotels have adopted year (from 2014 to 2016), the average
sustainability practices. While leaders of expenses remained more or less the same.
most hotel today are aware of the need for Also, quite interestingly, it was observed
adopting sustainability, often a strong vision that, for many hotels there was a weak
and a roadmap to achieve is absent. correlation between room occupancy and
energy consumption. These hotels were
*Niranjan Khatri is Founder of iSambav a sustainability training organisation, Bengaluru.

Email: niranjankhatri54@gmail.com
**Sriram Kuchimanchi, CEO of Smarter Dharma a social enterprise operating in the field of social and environmental sustainability.
(Courtesy: www.fhrai.com, Nov. 2016)
found to have high-energy consumption between occupancy and energy

during idle time (i.e. low occupancy). The consumption were the ones with structured
hotels that had a strong correlation energy plans.
Graph-1
Graph-2 below shows data from a popular goes up by nearly 48 paisa per unit on an
5-Star hotel in Bengaluru and we found average every year. This tells us that
that, even though energy consumption reduction in energy consumption needs to
reduced year on year, the expenses be substantial to make a dent in the
increased from 2015 to 2016. This was expenses. Therefore, focused energy
because of the revised energy tariff, which optimization plans are the need of the hour.
Graph-2
Water expenses vary depending on the city tariff rates in 2015 (doubled), the expense
and its water availability. However on an went up from 2014 to 2015. Again, this
average, water bills account for 10 - 15% of goes to show that to make a significant dent
a hotel's operating costs. In Graph-3 below, in the water expenses, hotels would need
we see data from a popular 5-Star Hotel in more focused Water Management
Bangalore. Though there was a dip in water Programs.
consumption year on year, due to revised
Graph-3
Making A Difference: Structured through targets that have been set via the
Sustainability Programs managed program.
Graph-4 compares water consumption per What clearly stood out for us from a lot of
room per day in two different hotels. Hotel our analyses is that - hotels with Structured
A is the one with a managed program Sustainability Programs and that are Green
around resource consumption while Hotel certified are the ones that did better than
B does not. We see that Hotel A has hotels without consistent monitoring and
consistently reduced its water consumption management of the resources.
Graph-4
Now, effective resource consumption is Focusing on Process efficiency changes,

only a part of a Structured Sustainability training and awareness with internal and
Program. To hit a strong triple bottom line, external stakeholders feed into building a
hotels also need to look into developing a Planet Conscious Brand. With an
Planet Conscious Brand and building on increasingly eco-conscious customer base,
Adaptability. Below is a brief on all aspects engaging with customers, informing them
of such a program. about the hotel's efforts around
sustainability will have them returning time
Efficient building design based on various and again. This would have a positive
certification programs (IGBC, LEED, impact on the topline while realizing gains
ECOTEL, EarthCheck etc.) during the on the bottom-line.
primary stage of construction plays a key
role in ensuring optimized resource Developing Agility and Adaptability is
consumption. While we do not recommend paramount in ensuring that the triple
any specific certification our findings reveal bottom line stays strong. One of the ways to
that a structured approach driven by build adaptability is by continuous
certification or by engaging an organization measurement, not just of resources, but also
bringing this expertise would be the most every aspect and outcome of sustainability
effective way. related actions. Measurements will provide
vital information to adapt and innovate
HVAC efficiency and selecting right kind interventions. A Sustainability Hospitality
of energy efficient equipment and Policy with all Stakeholders taken into
appliances also help in optimizing energy account can also help create a roadmap that
efficiency. Similarly, upfront design of keeps the effort alive and productive.
Water and Waste Management systems can
go a long way in reducing demand and The next section covers how technology
expense of water. can aid us in developing a Structured
Sustainability Program.
Resource Management tied in with targets
based on a Carbon Management Plan is an Getting Ahead with Technology
essential part of improving operational
efficiency. Technology is a huge aid to sustainability,
whether through infrastructure
Hotels developed on buildings that were improvements like the 'Internet of Things',
not constructed using the Green Building operation sensors, all the way to data
Standards, require interventions to optimize analyses and carbon management software
resource consumption. In such cases, where tools like Con-Serve. Con-Serve is a data
the building is already constructed, some management system that helps hospitality
interventions may not be possible due to businesses reduce carbon emissions, identify
structural limitations (for example: no space inefficiencies and saving costs. Data
for creating storage for capturing rain analysis using the Con-Serve tool also gave
water). Yet there are many other us better insights into how most hotels were
interventions that are feasible and must be performing.
looked into. Low flow showerheads and
aerators for faucets being some examples of Assessing Potential and Opportunity
low cost and easy to implement
Con-Serve analysis on resource
interventions.
consumption revealed hotels, which were
doing better than the global average, but ideas and solutions and be more
fared worse when compared to the global operationally efficient and a tool like
industry best. Which means, there's always Conserve helps ascertain that gap.
potential to further tap into innovative
Road Ahead conscious towards the triple bottom line.

This is a unique opportunity to build a more
With UN General Assembly declaring 2017 responsible and committed hospitality
as ‘The International Year of Sustainable sector that can capitalize its immense
Tourism for Development’, this is the right potential in terms of economic prosperity,
time for hotels to jump onto the social inclusion, peace and understanding,
Sustainability bandwagon and be more cultural and environmental preservation.
QUOTES
“INTUITION is a reminder of the power

of the human spirit”
John Holland
“We are stronger than we think. We have emotional, spiritual and even physical
resources at our disposal. We may get knocked down, but we don't have to stay
down.”
Steve Goodier
INDIAN ETHOS
Customers and Humans
Suresh Lulla*
My American visitors. Frank and Annetta, A few years later I was requested by the
had moist eyes. We had hosted them for management of that hotel to facilitate their
their stay in Mumbai at the most prestigious efforts on business excellence. More
hotel in South Bombay, and were all set for specifically, to help them understand the
a meal at the Indian restaurant. criteria for their clone of the Baldridge.
The Chairman had mandated the
Frank a Catholic of Italian origin, and implementation of these criteria by every
normally very talkative, just could not find company in the group. I believe stories are a
words. Annetta, also a Catholic but of Red great way to connect to any business model
Indian descent, maintained a dignified or criteria.
silence in the majestic lobby.
So while there was an outpouring of stories
They had just experienced the soul of India. from the Property Head and his team, I also
In turn, their souls were completely moved. chipped in the Frank and Annetta story.
Frank finally narrated that after the day`s Although they all appreciated my
proceedings at Qimpro Convention, contribution, they were not surprised. I was
Annetta was the first to return to their simply explained that this was the Group
room. When he opened the floor ten culture.
minutes later he found her sobbing with
uncontrollable tears. On inquiring, she Here was I helping to harvest a best
pointed to the picture of Mother Mary that practice; there was Frank proclaiming in to
she had placed at her bed side in the wee be a global best practice; and here was the
hours that morning. hotel simply accepting it as a habit .
Mother Mary was now sitting on a micro Lessons Learned

carpet with a rose and candle besides her. 1. Customers are humans; they have
This was in India. Incredible India. unstated emotional needs
2. Understand the sensitivities of customers
The two had called their dedicated butler to 3. Ordinary employees can delight
inquire and thank who did this? The butler customers
simply smiled and pointed to a shy 4. Transformation starts at the top
housekeeper in the background. 5. Adults like stories, not sermons
6. Defining an organizational culture is
This story was repeated by Frank, an difficult
extraordinary Quality trainer from the Juran 7. Walking the habits reinforces the culture
Institute, at workshops and conferences
across the world.
*Suresh Lulla is Founder & Mentor, Qimpro Consultants Pvt. Ltd. (Excerpted from his book ‘Quality Fables’)
Email: ssl@qimpro.com
INDIAN ETHOS
Being a Grateful Designer
Sudhir Sharma*
Introduction your former challenges can be your strength
These do apply to all professionals, But I in coming times.
think being grateful is Indian ethos as well,
bringing being grateful to the cut throat and Connect with other designers
super agressive professional life is an Gratitude is the emotion of friendship.
alternative way of being happy and being Meet your peers, share your work, listen to
content with life. It is almost being them and their stories. Talk about your
meditative. inspirations. Thank your team often.
Recognise the value of your team.
To be a happy and content designer, one
should cultivate the habit of being grateful Use social media
for every good project that comes to you, Inspiring pictures and messages on social
and to continuously think of its benefits. media can be very powerful. Use them and
We know that expressing thanks can lead to share them to get closer to your community.
a healthier, happier and less-stressed Social media can connect empowered
lifestyle. designers in a very positive way. Interact
with other inspired professionals.
Designers are always surrounded by stress-
inducing problems that they are trying to Value small projects
solve; gratitude can be a huge stress buster Engage often in small projects that take a
for them. How do we, as designers, be few days and offer quick results; do them
thankful for each thing that contributes to even if they are not as profitable. These
our lives? projects boost your faith in design. They
provoke feel-good feelings and bring teams
Here are six habits that could help you together.
cultivate gratitude on a daily basis.
Volunteer
Write Everyone needs help in getting things done;
Create a journal / blog of your learnings and designers can offer help in many ways.
positive outcomes from every project. This Extend help often without expecting
is particularly good for designers as they anything in return. You will create a
tend to focus more on the negatives of a positive design karma cycle. Use your talent
project. Keeping a gratitude journal can to solve non-design problems.
reinforce positive thoughts. Credit people/
things / processes / writers who have helped Travel
even in small measure. However, don't Traveling changes perspectives. Observe
avoid the negative. Writing about the nature, cultures and different processes.
positive does not mean you ignore your This is where you only provide the input
difficulties; take them head on and and do not have to stress about the output.
write about the lessons you've Travel has been proven to clear your mind
learned from dealing with them. Remember, and reduce stress, both key components in
setting yourself up for gratitude.
*Sudhir Sharma, is Founder INDI Design & Editor POOL magazine based in Pune, Maharashtra. He is also a member of India
Design Council. Email: sudhir@indidesign.in
LEARNING CURVE
Education needs to be our focus and how!
Rimmi Joneja*
Albert Einstein said ' If you judge a fish by important. Training needs to be a continues
her ability to climb a tree, she will believe ongoing process.
all her life she is stupid. Our education
system designed on this belief is in no way Planning Designing a class needs to be a
enhancing a child's ability but downgrading focused time consuming task. Few colleges
it. pay for planning to a teacher. Everyt time
Our children thus being brought up in such new thoughts ideas innovations must
a system to be more like robots their happen. Delivering methods to be planned
creativity sense of belief killed at the stage differently to ensure each child gets to learn
when precisely need grooming, nurturing his/her ways and gets a chance to explore
and attention from parents and children. and discover with teachers.
The early age of any child is the time to Focus needs to prepare students for the
grow learn as Dr. Howard Gardener future not the past, that's what we seem to
advocated. Let's as teachers parents be doing!
remember this and focus on grooming
nurturing. Post this age is just repetition Building research capability has not been as
how much we try. now. Our education must prepare our kids
for that. Corporates IITs already been
School system doing exactly what it complaining regarding quality of students
shouldn't do. Children grow up as robots been deteriorating. Corporates forced to
machines, I saw a video which sued the run classes for just hired students, back to
school system it's stake holders to the court school!
to accept this belief, so very true.
So much needs to be redone undone! Those
To add to the story ultimately we have who are responsible for designing
killed the research mind with thinking. In curriculum have themselves never taught.
many students true research is depleting.
Innovation is the victim, true innovations A child from slums learns himself has
discoveries missing. We are the land of topped while the most privileged hardly
Aryabhatta, Abdul Kalam, have lost our pass. Basic processes need streamlining. A
ability by developing a dead curriculum widow maid's child most talented struggling
incapable students. It's a wake up call, to for his caste certificate, mother made to run
start train teachers like other countries from pillar to post.
teachers are the highest paid community.
Education needs to be easily available for
Selection training teachers to start most the future generations.
*Rimmi Joneja, HR Faculty, S. P. Mandali’s Prin. L. N. Welingkar Institute of Management Development & Research
Email: rimmijoneja@welingkar.org
LEARNING CURVE
Change Is Not The Only Constant
Shahnaz Pohowala*
There is a lot to be said for changing with Where do flowers get their colours from ?
the times. We grow up, change schools,
switch jobs, get married, move to another Then life happens. We grow up and all
country, get old. All this requires huge these miracles cease to excite us. We take
adjustments, in our lifestyle and in our nature for granted and push its wonders to
mindset. Resisting change or being the outermost recesses of our conscience,
unwilling to move out of our comfort zone, where even devils dare not tread. We weigh
can severely hamper our growth as human our words and measure every move, to make
beings and as professionals. an impression. We mouth polite niceties
without meaning a word. We kill our
Yet, there are 3 things that we should not natural curiosity because some misguided
let change, no matter where we are and souls made us believe that only idiots ask
what we do. questions. We become cynical and selfish,
looking for and pushing our own agendas in
Don't let the wonder-bug in you die. our dealings with people.
When I was a kid, I thought human babies
came from the same eggs that baby chickens Meanwhile, the innocent, trusting child
came from. I was convinced that the only within is stifled to a slow painful death.
reason I didn't have a sibling was because
my parents didn't pay enough to the egg Don't compromise on your principles.
vendor to get us a baby. Of course I later How many times have we done something
wisened up to the stork story, but the point we don't quite believe in ? I think most of
here is the innocence of childhood. As us can put our hands up here. Sometimes its
children, we are so spontaneous, and to protect our own interest, sometimes for
curious, and trusting, and non-judgmental. our families, sometimes for our jobs. White
We believe in fairy tales and in Santa Claus. lies, cover-ups, marketing savvy, are all
We say what we mean and mean what we considered acceptable and part of life. But if
say. We love deeply and unconditionally, you are severely compromising on your
and express our displeasure with equal values, take a pause and ask yourself if it's
candor. It is rightly said that if you want worth it. Most times the answer will be No.
the truth, ask a child. Children are awe The recent scam of call center employees
struck by the wonders of nature – How do booked for impersonating the US IRS is a
clouds float in the sky ? How do birds fly ? case in point. Some of them tried to justify
*Shahnaz Pohowala, General Manager – Accreditation

S.P. Mandali's Prin. L.N. Welingkar Institute of Management Development & Research, Mumbai. (This was first published on
LinkedIn, November 2016)
Email: shahnaz.pohowala@welingkar.org
Change is not the only constant
that they needed the job. Some said they and most likely facing criminal action. This
intended to quit once they received their is one job they could have done without.
salary. But now all of them are behind bars
Don't forget your roots. noses at the “crowds” and “filth” in their
What we are today is all thanks to our past - country of birth. I am all for bettering our
good, bad or ugly. Those with an ugly past circumstances as we become more
may well rise above it, but even they have successful in life. But cutting away from our
to acknowledge its role in shaping their roots is a sure way of losing balance. Roots
lives. Many of us have risen from humble are also the people from our past – teachers,
beginnings, where less was more. Our friends, neighbors, bosses, colleagues, who
parents probably sacrificed many comforts taught us all that we know today, who stood
just so we could get a good education. So by us when we faltered, who encouraged us
what if we didn't have a car or a new dress to reach for greater heights.
for every birthday party ! There are people
who are embarrassed about where they lived Change is a process of letting go of the old
in their childhood, just because they can and embracing the new. Do it with open
now afford a sprawling sea facing house. Or arms, but don't lose the core.
those who migrate abroad and turn up their
LEARNING CURVE
Is Interest A MUST For Learning ?
Dharmendra Rai*
Here is YUUUUGE myth about learning
If a person doesn't find something interesting he won't or can't learn it
Yes . It is a myth !
Most teachers, parents & trainers think that interest helps learning.
They think “how can we better engage students with this stuff. How can we make them
want to learn ?”
It is true Interest in a subject helps learn it. People have things they can do to cultivate
interest & engagement . There are ways to increase motivation to learn
But here is a surprise
A little foundational learning can actually foster the development of interest & that 's a good
reason to stick it out through early frustration
Recap :
If you find something uninteresting but still want to learn it, stick it out through early
periods. Its worth the grind.
*Dharmendra Rai is Mumbai's First Mind Map Trainer. A super specialist in learning, memory & creativity
He has conducted 299 Mind Map Seminars - Probably A WORLD RECORD ! -for Execs of Many Fortune 500
Cos, IITs, IIMs, Harvard Business School, Wharton Business School , Johns Hopkins , Oxford , & London School of
Economics (LSE) Alumni. Email: dharmendra@mindmapstrainers.com
CASE STUDY
Brand War “Patanjali Vs Global and

Domestic FMCG Rivals”
Indu Mehta*
ABSTRACT
When reports came out that Patanjali Ayurved Ltd(PAL), promoted by Yoga Guru Baba Ramdev, has
recorded gross revenues of Rs.2500 Crore (around $380 Billion USD) in fiscal 2015, With Trade
analysts ruling out Patanjali just as fad, many of the big player FMCG companies are discussing the
1
strong Patanjali brand in their board rooms. Patanjali is also called the Indian Body Shop.
PAL, along with the yoga institution, Patanjali Yogpeeth, was founded by Baba Ramdev along with his
associate, Acharya Balkrishna, an Ayurveda practitioner, in 2006. While Ramdev focused on yoga,
Balkrishna developed Ayurveda medicines. Gradually, PAL started manufacturing food items and
cosmetics, and today, has its headquarters and manufacturing unit at the 100-acre Patanjali Food and
Herbal Park at Haridwar, Uttarakhand, employing 6,500 people. The gross revenue figures for FY15,
2,500, was no flash in the pan.
PAL had registered turnovers of 1,200 crore in FY 14, 850 crore in FY13, and 450 crore in FY12,
according to figures from the Registrar of Companies quoted by websites. The 2015 figure compares with
Emami‘s 2,217 crore and Jyothy Laboratories‘ 1,481 crore (much older companies, founded in 1974
2
and 1983, respectively).
In a report, Credit Lyonnais Securities, a foreign stockbroking company, expressed amazement over
3
PAL‘s success: ― Wish you were listed.
KEYWORDS: Ayurveda, FMCG, India, Yoga
Introduction ready market and its gigantic growth rate

would make it a $5 trillion market
Ayurveda Market in India & Patanjali’s worldwide by 2050. The total size of the
Glaring Entry 4 Indian Ayurvedic market is INR 50 billion
Indian health care industry has undergone a and it is growing substantially at a rate
paradigm shift due to people‘s inclination to between 10-15 percent. Indian Ayurved
Ayurvedic/Herbal therapy in order to get rid industry is currently perceived as investment
of the various adverse post treatment effects worthy by prospective investors since firstly,
of Allopathic medication. Having a brilliant it is recession proof and secondly, it reaches
future in India as a business venture, its out to a larger chunk of target consumers
business prospects amounts to a $20 billion across all income groups.
1 http://economictimes.indiatimes.com/industry/cons-products/fmcg/how-baba-ramdev-has-built-a-rs-2000-crore-
ayurvedic-fmcg-empire-plans-to-take-on-multinational-giants/articleshow/47657636.cms
2 http://www.mbacrystalball.com/blog/2016/01/15/patanjali-case-study-how-ramdev-created-fmcg-business/
3 http://www.business-standard.com/article/markets/wish-you-were-listed-patanjali-ayurved-clsa-115082800265_1.html
4 http://www.indusedu.org/pdfs/IJRESS/IJRESS_711_60974.pdf
*Prof. Indu Mehta, Associate Professor- Marketing, S. P. Mandali’s Prin. L.N. Welingkar Institute of Management Development and
Research, Mumbai.
Email: indu.mehta@welingkar.org
Brand War “Patanjali Vs Global and Domestic FMCG Rivals”
The long and successful runs of several Where it all began: Evolution of Patanjali8
brands in this field like Dabur (launched
1884), Amrutanjan (launched 1893), The Patanjali saga began with a humble
Himalaya (launched 1930), Baidyanath setup linked to India‘s best export to the
(launched 1917), VICCO (launched 1952) world. Yoga back in 2003, a relatively
etc proves the viability of Ayurveda as a obscure channel called “Aastha TV”
growing business opportunity. According to opened its early morning slot for Baba
ASSOCHAM, the Indian herbal industry is Ramdev, who would appear every morning
likely to double from Rs 7,500 crore to on television, clad in a saffron dhoti, bare-
Rs 15,000 crore by 2015. chested, twisting and twirling his body to
eye-popping angles, while elucidating on
Initially, Apart from franchised outlets & Yogic rituals. Earlier known in limited
distributors, Patanjali products got placed circles for his free yoga lessons, his easy-to-
now in the shelves in Reliance Retail, Big follow breathing techniques based on his
Bazaar, Hyper City and Star Bazaar. At learning‘s from several scriptures, combined
present Patanjali Ayurved Limited have with his earthly appearance and catcalls on
four manufacturing units in Hardwar have a black money gradually made him a spiritual
capacity to process 1,000 tonnes of raw rock star of sorts.
materials, rolling out 500 products in
medicine, food and cosmetics and toiletries. While Baba was busy with his histrionics on
Baba Ramdev using his strategy of mass and off screen, his close associate Acharya
customization‘ and content marketing‘ a Balkrishna harboured a dream of
turnover of Rs 1200 crores resulted in 2013- amalgamating the yoga guru‘s popularity
14.5 Patanjali curtailed its expenditure on and his knowledge of ancient Ayurveda
advertisements compared to 20 - 30% with best of breed technology. Thus was
spending by leading FMCG big shots of born PAL, which began manufacturing
their sales on advertisements. In medicinal products and, slowly but steadily,
comparison to giant multinationals ventured into segments like dental care,
Patanjali‘s products happened to be cheaper cosmetics, and food products.9
by at least 30 per cent due to direct
sourcing of raw materials from the farmers Today, Baba Ramdev starts his early
with the aim of economic empowerment of morning with Anulom Vilom Pranayama (a
farmers in terms of employment generation breathing exercise) which is broadcasted on
through promotion of Swadeshi goods.6 a national TV channel named Sanskar.
After an hour of yoga, he very subtly
Moreover, tendency to lead a hygienic and promotes the importance of Ayurveda
healthy life style drives the Patanjali products and in turn his toothpaste-to-ghee
products to achieve phenomenal portfolio of brand Patanjali. The company
popularization. In addition to the today has more than 400 products in
distribution network of franchised outlets & FMCG category and around 200 products
distributors Baba Ramdev made his in form of pharmaceuticals directed to
Patanjali's products available at e- people across all age-groups.10
7
commerce site.
5 http://www.business-standard.com/article/management/d-mart-beats-the-goliaths-113071000948_1.html
6 http://www.business-standard.com/article/management/the-patanjali-effect-116020800204_1.html
7 http://www.livemint.com/Companies/hLEBBx17cFY5rPjTjmIP9O/The-Patanjali-story.html 8 http://www.indiainfoline.com/article/
print/news-top-story/make-in-india-how-patanjali-is-brewing-a-storm-in-fmcg-
Patanjali Empire the donation made to a NGO through 12A,

80 g, 80GGA, 35 ac (i & ii), (i & iii),
Baba Ramdev‘s business empire includes 80CCC, 80U, 35 ac, 115A, 115AB,
Patanjali Ayurved (FMCG), Patanjali 115AC, 115AD, and 115D for charitable
Gramudyog (agricultural products) and purposes.12 (See figure 4: Decryption of
Divya Pharmacy (Ayurveda medicines) in PAL)
addition to a yoga research centre, a multi-
speciality hospital, a food park and a Baba Ramdev owns Patanjali because of his
cosmetics manufacturing unit. Patanjali yogic prowess. (The Yoga Sutras are one of
(FMCG) clocked more than 2000 Cr of the most important texts in the age-old
sales in 2014 and is estimated to reach Yoga philosophy written by the Sage
20,000 Cr of sales by fiscal 2020. Patanjali in about 400 CE). Baba Ramdev
has already gained recognition as one of its
Incidentally, he holds no stake in Patanjali most respected modern proponents. And
Ayurved, 92% of the shares are held by his Acharya Balkrishna owns Ayurveda since
confidant Balkrishna and rest 8% by he is an Acharya. Acharya means many
Scotland-based NRI couple Sunita and things in Indian literature but let‘s take the
Sarwan Poddar.11 simplest meaning of being a preceptor and
teacher. Yogi on the left and Acharya on
Patanjali Portfolio the right is a really awesome combination
There are 2 companies registered under that should win the hearts of the Indians.
Patanjali Ayurved Two powerful forces coming together.13
1. Patanjali Ayurved Limited with CIN Entry of Patanjali into Consumer Sector:
U24237DL2006PLC144789 and
Registration no 144789 which has an The entry of Patanjali into the consumer
authorised capital of Rs 500 million. sector is going to bring about structural
This company is registered in New changes in the consumer mindset towards
Delhi and is obviously the consumer packaged products, especially in categories
facing part of the Patanjali Group. such as infant care and sanitation.
2. Patanjali Ayurved Private Limited Patanjali's products could also act as a risk
which is registered as an Indian non- to competition in the long term, as they are
government company with CIN priced lower than those of other players in
U52311KL1995PTC009012 and the market and should be able to influence
Registration no 9012 with an the price-sensitive consumer easily and,
authorised capital of Rs.1 million. This thus, test customer loyalty.14
company is registered in Ernakulum,
and no doubt is the Ayurvedic B2B "Patanjali products are also health-driven, a
arm of the Patanjali Group. play on premiumisation, and should be able
generate more awareness among consumers,
An NGO has obvious benefits since under thereby allowing volume growth for other
the Income Tax Act NGO tax exemption players as well," Nomura (financial advisory
15
and tax benefits are available to Donors for and securities India)
9 http://www.indiainfoline.com/article/print/news-top-story/make-in-india-how-patanjali-is-brewing-a-storm-in-fmcg-sector-
116011300291_1.html
10 https://en.wikipedia.org/wiki/Ramdev 11 http://economictimes.indiatimes.com/industry/cons-products/fmcg/how-baba-ramdev-has-
built-a-rs-2000-crore-ayurvedic-fmcg-empire-plans-to-take-on-multinational-giants/articleshow/47657636.cms
Credit Lyonnais observes that most of Patanjali sells cornflakes and muesli in a
Patanjali products are available at an category led by Kellogg‘s, an almond health
attractive discount to competition. The drink in a segment dominated by Mondelez
company sources products directly from International‘s Bournvita and an anti-
farmers and cuts on middlemen to boost wrinkle cream that could compete with
profits. It makes 20% operating profit. This P&G‘s anti-ageing product, Olay. One of its
is the difference between total income and top sellers is toothpaste called Dant Kanti
expenditure. Patanjali has 5,000 franchised (tooth shine in Hindi) which is a potential
stores. Retailers told that their average gross rival to Unilever‘s Pepsodent. Market
turnover is Rs 25,000 every day. Profit leader Colgate is already sensing a shift in
margins for retailers are 10-20% across tectonics in the oral healthcare segment.
product categories. Due to several category overlaps, Dabur is
also likely to face the music. Latest one is
Patanjali Food and Herbal Park was Patanjali Power Vita, direct challenger of
established in 2009 under the food park Dabur Chyawanprash.18
scheme of the Indian government. The
company reportedly commissioned one of Colgate-Palmolive India reported its worst
the largest food parks in the world at a total sales growth in 44 quarters. Hindustan
investment of Rs 500 crore. The food park Unilever‘s revenue expanded at the weakest
is spread across 100 acres and provides pace in more than six years and the new
employment to over 6,500 people. A CEO of Nestle India recently got queried by
recent CLSA report says the unlisted analysts about how Maggi noodles will deal
Patanjali Ayurveda, which, at the end of with competition from Baba Ramdev.
2014-15 had revenue of about Rs 2,500 Colgate still controls 57.3% of the Indian
crore, spends practically nothing on toothpaste market, but its share has come
advertising and sales promotion. By down for a second straight quarter, the
comparison, the average advertising and analysts say. Meanwhile, Baba Ramdev‘s
sales promotion costs for fast-moving recent distribution tie-up with Future
consumer goods (FMCG) companies are Group, India‘s largest retailer, means the
nothing less than 12-15 per cent of sales. fight for market share will only get more
Although now, patanjali has hired two top intense. The retail group‘s founder predicts
advertising agencies: McCann and Mudra, Patanjali will break into the top three
to prepare the business for the next phase of consumer staples companies in India.
growth.16 Colgate, Unilever, Nestle and
GlaxoSmithKline may all be affected,
Competition: Challenging MNC though to varying degrees. ITC is safest
competitors from the threat of Patanjali as it considers
cigarettes unhealthy and against its
As the Patanjali brand continues to make philosophy.
headway into the consumer market, large
multinationals that previously sat pretty on According to a report by IIFL Institutional
handsome margins, have been forced to Equities, Patanjali is likely to touch a net
17
stand up and take notice. turnover of Rs. 200Bn by FY20, resulting in
12 https://www.zaubacorp.com/company/PATANJALI-AYURVED-LIMITED/U24237DL2006PLC144789
13 http://marketingbuzzar.com/2016/01/patanjali-ayurved-analysis-how-does-the-brand-stack-up/
14 http://articles.economictimes.indiatimes.com/2015-09-10/news/66396768_1_consumer-sector-commodity-prices-eps
~1-1.5% impact on sales CAGR for the one of the latest products from the
sector. The highest market shares of TetraPak juice line of Patanjali. The tart
Patanjali are likely in categories such as berry is a constant theme at Baba Ramdev‘s
Ayurvedic Medicine (35%), Honey (35%), sprawling Patanjali manufacturing empire
Ghee (33%), and Chyawanprash (30%), that stretches from Muzzafarnagar, to
the report adds. 19 Saharanpur in the fertile Gangetic plains of
Uttar Pradesh and now Uttarakhand.
PAL maintains high profit margins on
several of its products, thanks to the The reverence to the fruit is
phenomenally low overheads compared to understandable: Patanjali‘s 2,000-crore
the competition. Neither does PAL hire FMCG journey began ten years ago, quite
management professionals with fat pay accidentally, with gooseberries. Acharya
checks, nor did it spend much on Balkrishna, the 43-year-old architect of
distribution until recently, operating solely Patanjali‘s growth from a cottage industry
through exclusive shops.20 to the one that is giving MNCs sleepless
nights, says it all started in 2005, when a
For instance, if Kellogg's is selling flakes for delegation of farmers met Ramdev.
Rs 91 and Rs 159 (MRP for 250 gm and 475
gm, respectively), Patanjali flakes are They were going to destroy their gooseberry
availablefor Rs 85 for 250 gm and Rs 145 plantations as there was no demand for the
for 500 gm. The aggression on the price fruit. To stop them, Ramdev started
front is also visible in categories like manufacturing amla juice. At first, we had
detergents (vis-a-vis Surf) and dish wash no clue how to go about it and outsourced
bars (vis-a-vis Vim). No wonder, the the fruit to a food processing unit in
company has managed to maintain lower Hoshiarpur in Punjab, says Balkrishna.
prices despite the pressure of inflationary The juice became a runaway hit, and
21
trends on its popular products. Patanjali started sourcing gooseberries from
all over the country to meet the demand.
Success Story of PAL (Patanjali Ayurved Today, 25 truck-loads of gooseberry arrive
Limited) - The Story Behind ? at the Patanjali unit, where 6,000 litres of
juice is processed per hour. Now there are
Pale green gooseberries dangling on bushes so many other amla juice manufacturers in
greet our eyes as we drive into Baba the country. We literally created the
Ramdev‘s Gurukul Gaushala near category, said Balkrishna.
22
Haridwar. It is a sprawling cow shelter with

400 cows. Close by is the bustling Patanjali From niche to mainstream
YogPeeth, from where the Group's FMCG
operations are masterminded. Here, the first Creating new product categories partly
thing you are served is an assortment of explains Patanjali‘s early success. After
amla (Indian gooseberry) candies. And 35 amla juice, it started making the sort of
km away at the 100-acre Patanjali Food and esoteric local food and personal care
Herbal Park at Padartha, you are urged to products (aloe vera juice, hing (asafoetida)
taste an amla-aloe-Vera-litchi concoction, digestive golis, shikakai (acacia concinna)
15 http://articles.economictimes.indiatimes.com/2015-09-10/news/66396768_1_consumer-sector-commodity-prices-eps
16 http://www.thehindubusinessline.com/markets/stock-markets/clsa-wants-ramdevs-patanjali-to-be-listed/article7591353.ece
17 http://www.indiainfoline.com/article/news-top-story/make-in-india-how-patanjali-is-brewing-a-storm-in-fmcg-sector-
116011300291_1.html
sherbets and spices that Indians otherwise cornflakes and cookies. The group employs
shopped for atkhadi or gramudyog outlets. about 15,000 people in its units. Ramdev
According to the company officials - said that the business has grown 150 per
Patanjali Ayurved Ltd is not a company. It cent this year, and may close this fiscal with
is a CONCEPT – a concept that links the a turnover of 5,000 crore. Though Ramdev
rising destiny of millions of rural masses on claims that he and Balkrishna don‘t set
one hand and many suffering from urban targets, in the next breath, he throws a
slavery on the other hand. It is all about 10,000-crore-turnover-in-three-years
economically processing farm produce into goal.25
consumables for daily usage ranging from
Ayurvedic health supplements to The growth, he adds, will come through
confectionary food items to cosmetics and expansions into everything from baby care
then supplying them largely to the urban to garments. From bio-fertilisers to healthy
world.23 food, to organic cotton clothes, we will
produce anything that can make India and
The produce will be picked up right from Indians beautiful, declares his acolyte
the farms, thereby increasing the effective Balkrishna. But how is noodles making
income of the farmers. The health-based Indians beautiful? Both Ramdev and
products will be made available to a large Balkrishna insist it‘s not an incongruous
population in the urban areas that are product for them, but are weaning Indians
reeling under the scourge of polluted food away from videshi‘ junk food by offering
items and artificial drinks that make them healthier local alternatives. ―Swadeshi is
vulnerable to a variety of chronic diseases. our goal said Ramdev, and declares,
And all this is available at extremely Noodles – which resembles our Sevaiyan
economical rates which are unmatched in (vermicelli) - is quite Indian. The profits
the market. We suddenly saw a market gap from the FMCG business will be used to
that could be filled, says Balkrishna. build 500 Acharya Kulams across the
Whatever people demanded, we kept country. These are K12 schools that will
making, adds Ramdev, before taking a jibe impart Vedic education. The first of these is
at MNCs, We don‘t bother with expensive already up in Roorkee. Also being launched
market research. As the enterprise are Ayurvedic colleges and research
flourished, Patanjali became ambitious and institutes. Next year, they will be starting
started getting into established FMCG animal-based trials for medicines for blood
categories. The change also seems to have pressure, cancer and hepatitis, said Ramdev.
coincided with Ramdev‘s growing political 26
clout.24
Anurag Mathur, partner, PwC India, said:
Currently, Patanjali Divya Pharmacy - the Macroeconomic trends show that there is
Ayurvedic medicine manufacturing enough opportunity in the secular packaged
company, and Patanjali Gram Udyoga food industry for both, the MNCs and
Unit, produce nearly 600 products. Indian companies. But why are they so
Patanjali has now muscled into noodles, antagonistic to MNCs? After all the FMCG
18 http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/saritharai/2015/10/15/an-indian-yoga-gurus-consumer-
products-brand-patanjali-is-making-global-and-domestic-rivals-sweat/&refURL=https://www.google.co.in/&referrer=https://www.google.co.in/
19 http://www.forbes.com/sites/saritharai/2015/10/15/an-indian-yoga-gurus-consumer-products-brand-patanjali-is-making-global-
and-domestic-rivals-sweat/#151426d61038
http://www.indiainfoline.com/article/print/news-top-story/make-in-india-how-patanjali-is-brewing-a-storm-in-fmcg-sector-116011300291_1.html
market in India is currently a 2 lakh-crore and who is deeply connected and loyal to
market and there is enough room for the brand. He/she grows with the brand and
everyone, the market will double in five not necessary it is always about the money.
years.27 But does such ideal endorser exist in today's
brand-competitive world?
Critical Success Factors
Yes, one such endorser does exist. His name
A Single Brand Strategy is Baba Ramdev and he is not a film-star.
The Colgate company sells brands under its The growth and success of Patanjali
name, Palmolive, Ajax and others.Procter Ayurved today in Indian market is directly
and Gamble go further - there's Gillette, associated to decade long journey of yoga
Tide, Pampers, Ariel, Duracell and so much guru Baba Ramdev formerly known as Ram
more.Unilever is the classic proponent of Krishna Yadav.
the multi-brand strategy: from Surf and
Dove and Lipton and Lux and Ponds to Ramdev was born as 'Ramkishan Yadav' in
variants like Surf Excel and Lipton Yellow Alipur, in the Mahendragarh district of
Label and Lux Supreme and Ponds Indian state of Haryana. He attended
Dreamflower and far, far beyond.But take a school through the eighth grade in
look at the Patanjali range above - whether Shahjadpur. Thereafter, he joined a yogic
it's toothpaste or rice, noodles or monastery (gurukul) in Khanpur village to
chyavanprash - it's all under one brand, study Sanskrit and Yoga. Eventually, he
Patanjali.28 renounced worldly life and entered into
Sanyas (monastic living) - taking the name
Baba Ramdev – The Ultimate Brand Swami Ramdev.Then he went to Jind
Champion district and joined the Kalva gurukul and
offered free Yoga training to villagers across
When it comes to brand Haryana. It is said that he travelled the
endorsers/ambassadors, we often forget that Himalayas for several years before he settled
there is much to brands rather than the in Haridwar. He claims to have discovered
Khan's, Kapoor's, Bachhan's, our beloved several medicinal plants in the Himalayas
cricket fraternity or whoever has huge fan which he uses in treating his patients.
appeal. Brands die to get their Ramdev started relentless efforts to
product/service endorsed by them through popularise Yoga in 1995 with the
all channels of communication. The recent establishment of D Y M Trust along with
case of Reliance Jio launch being Acharya Karamveer.In 1995, Ramdev
congratulated by all film-stars on Twitter joined the order of Swamis after being
with a common message and with exact initiated into the ascetic order by Swami
same punctuation marks was an apt Shankerdevji Maharaj. While training to be
example explaining the role a celebrity a Swami, Ramdev spent many years
endorser plays when it comes to pramotion. undertaking an intense and thorough study
They do just what they are being told to do. of ancient Indian scriptures. At the same
An ideal brand endorser is the one who time, he also practiced intense self-
understands the very existence of the brand discipline and meditation.Thereafter, he
116011300291_1.html
116011300291_1.html
22 http://www.casestudiesjournal.com/Volume%205%20Issue%204%20Paper%203.pdf
joined a yogic monastery (gurukul) in Kotak report31 identified four reasons why
Khanpur village to study Sanskrit and Yoga. Patanjali's products are cheaper than
Eventually, he renounced worldly life and competition.
entered into Sanyas (monastic living) -
29
taking the name Swami Ramdev. a) Patanjali's top management takes no
salary and they have no big
He teaches that God resides in every expenses, the report added. Ramdev,
human being and that the body is God's the face of the brand reportedly doesn't
temple. He is a firm believer in the concept own any stake in the company. His
of Vasudhaiva Kutumbakam (the whole close confidant, Acharya Balkrishna, is
World is one family) and decries practices the managing director. Ramdev's
that discriminate on the basis of caste, brother Ram Bharat runs day-to-day
creed or gender. His fundamental belief is operations, while Deepak Singhal, a
that expressions of love, affection and pharma veteran and Ramdev follower,
compassion towards all living things are the is the chief strategy officer.
true worship of the Creator. An ordinary b) Patanjali benefits from efficient raw
yoga teacher who once used to roam material procurement—without any
villages and towns selling Ayurveda leakages or commissions paid. This cut
medicines on his bicycle now owns an down costs by at least 5%.
island in Scotland and has Crores worth of c) Patanjali's core strength in cutting
assets. The very fact that Baba Ramdev left costs lies elsewhere. It has largely
Haryana and moved Haridwar to teach yoga avoided huge advertisement costs that
at Gurukal Kangri University reflects the account for as much as 10-15% of the
important aspect of segmenting and other FMCG majors' expenditure.
targeting your consumers correctly. It took ―Baba Ramdev is a great proponent of
10 years to build brand Ramdev and in turn a direct marketing FMCG company,
30.
brand Patanjali and is one step ahead of the likes of the
Amways and Avons of the world,
Pricing Strategy: Piyush Pandey, executive chairman &
creative director of Ogilvy South Asia,
Patanjali's objective is to make products told The Economic Times last year. For
available to the consumer at the most years, Patanjali relied on direct
reasonable price, and therefore most of its marketing by the yoga guru's disciples
products come at a substantial discount to and instructors. According to
existing alternatives. The price differential brokerage firm, CLSA, Patanjali has
itself may be enough for some consumers to the potential to reach out to more than
make the shift and for those in the low 200 million directly or indirectly
income class to become loyal customers of linked to his yoga programme.
the given product category. For example, d) The fourth and last reason is the
Chyawanprash, one of Dabur's flagship company's ability to maintain very low
products is nearly 25% more expensive profit margins w.r.t its distributors and
than that of Patanjali's. Similarly, Honey is retailers.
priced at 43% lower than Dabur.
23 http://collaborativelicensing.com/?p=518
24 http://www.letsintern.com/company/internships-at-Patanjali/23917
25 http://www.thehindubusinessline.com/specials/the-monk-who-wants-abilliondollar-company/article7958593.ece
26 http://indiatoday.intoday.in/story/baba-ramdev-school-chain-aacharya-kulam-haridwar/1/405885.html
4. Communication Strategy them through regular yoga and Ayurveda

tips.
The brand grew manifold apart from the
association with Baba Ramdev, mainly He claims he have interacted more than 20
because of two reasons: Healthy products at crore of people till today through his camps
a price less than others and the with additional 5 lakh trained yoga teachers
„Swadeshi factor. The target audience of working with Patanjali. Effective WOM, we
Patanjali is not just the older generation as can say!
many believe. Baba Ramdev firmly believes
that foreign players have exploited our b) The second category would include the
farmers and have corrupted the system. He growing health-conscious Indian audience
just pointed out the evils of MNC's and which are not restricted to any particular
urged all Indians to use Indian products age-group. Thanks to the Maggi incident
which are healthy and of better quality and that discovered over-consumption of lead
also cost effective in terms of foreign in Indian bodies which led to rise in sale of
players. Also significant percentage of Patanjali noodles.
profits from Patanjali products are claimed
to be donated to charity projects in India. Patanjali remains perhaps the only
A brilliant strategy that includes both company in the FMCG space that didn't
rational and emotional appeals to rely on advertising for its scalability during
consumers. its nascent years. Word of mouth publicity
and powerful endorsements by Baba
Patanjali Ayurveda makes consumer Ramdev via his yoga camps helped build
products such as Patanjali Desi Ghee, scale. Moreover, an exclusive store network
Patanjali Chyawanprash, Kesh Kanti, proved a winning strategy. There are nearly
Patanjali Aloe Vera juice, Dantkanti soaps, 10,000 consumer touch points as
oil, breakfast cereals, Noodles, Biscuits etc. “Chikitsalayas” (Dispensaries) and
They are popular as 'swadeshi' products “Aarogya kendras” (Health centres). These
(Made in India) as they adhere to traditions are operated by third party vendors as
of Ayurveda. exclusive Patanjali stores.
If we profile the consumers inspired by Baba This year, however, Patanjali has firmed up
Ramdev, they will primarily fall into 2 plans to spend almost Rs300 crore on
categories. advertisements across television, radio,
print and digital media. Overall, it plans to
a) Firstly the 'bhakts', these are the people invest Rs1,000 crore to set up exclusive
who will get up at 5am every day and block stores, and ramp up online distribution.
their right nostril with a thumb and draw in Recently, PAL launched a series of TV
air from the left nostril. They believe commercials to take head on its
whatever Baba says is worth giving a shot at competitors. In fact, PAL was one of the
least once. He has around 44.3K followers top 3 advertisers on TV for more than 2
on Twitter and facebook and he influences months. The underlying subliminal theme
28 https://www.linkedin.com/pulse/how-patanjali-uses-modern-brand-strategy-grow-past-colgate-murthy
29 http://www.yogapranayama.com/swami-ramdev-biography
30 http://www.patanjaliayurved.org/about.html
31 http://qz.com/606630/how-baba-ramdevs-patanjali-is-winning-a-big-battle-against-global-fmcg-companies-in-india/
is Bharat Swabhiman. If while watching Initially, Patanjali's consumers came from

the Patanjali Ayurved commercials you its massive yoga and Ayurveda network.
think it is only a logo that appears on the Patanjali Yog Samiti has 1 lakh branches,
upper right hand corner, then you are and 5 lakh teachers. Across India, there are
wrong. In fact Bharat Swabhiman is both a 10,000 Patanjali Chikitsalaya and Aarogya
website and a movement. Kendras. Ramdev claims he has interacted
with at least 20 crore people who have
While speaking to consumers, what emerges attended his camps.
is that people are genuinely happy to
support a home grown Indian venture that Now, the group is trying to expand its
capitalises on two ancient Indian traditions: consumer base through professional
ayurveda and yoga. Partly because no one channels. There are 80 super distributors
has done it before. Bharat Swabhiman and 700 distributors and 5,000 franchised
awakens that raw nerve in the Indian stores. After the much hyped deal with
sentiment, where Indians feel that Biyani's Future Group, Patanjali is now
multinationals have been exploiting the going after almost every other modern trade
Indian population. In this context Patanjali brand – from Spencer's to More, to place its
Ayurved appears like a saviour to the products. ―Our aim is that 15 per cent to
32
Indian population. 20 per cent of Patanjali's turnover should
come from modern trade, said Pittie, CEO
5. Distribution Strategy of Pittie group who is pan-India distributor
of PAL. The Group is setting up giant
Patanjali products are sold through three Patanjali Mega Marts too.
types of medical centres namely Patanjali
Chikitsalaya - clinics along with doctors, Challenges Ahead
Patanjali Arogya Kendra - health and
wellness centres and Swadeshi Kendra - Baba Ramdev's brand seems well configured
non-medicine outlets. A typical Patanjali and ready for take-off. It seems to have all
centre is 500 to 1,500 square feet in size. the magic ingredients of success. Among
The group has 15,000 exclusive outlets pan the popular Ayurvedic companies in India,
India. Their goal is to operate 100000 Patanjali's growth rate appears to be
outlets in next few years. They also praiseworthy in terms of sale, awareness and
distribute through general retail stores and number & size of outlets. Within a very
big format supermarkets like Big Bazar, short time of last 5 years, awareness and
Hyper City, and Reliance Fresh along with utility of Patanjali's deep product-
online marketplace like Amazon. Patanjali assortment have been so wide spread that it
has 5,000 franchise stores. The franchise has narrowed its gap with companies like
model has made the product appear limited Dabur, Marico and Godrej Consumer
in quantity and helped develop an exclusive Products.
brand image. The products claim that they
contain no chemicals and possess Notwithstanding the trajectory that PAL
significant efficacy levels; which matches treads in future, it undoubtedly is an
the expectation of a consumer, from a exciting development. Its central theme of
brand like Patanjali!33 ―Swadeshi produce has resonated very
32 http://marketingbuzzar.com/2016/01/patanjali-ayurved-communication-analysis/
33 http://collaborativelicensing.com/?p=518
well with consumers, and more important, instance, will be critical to cope with the
its quality benchmark is firmly established. volumes. Patanjali has already faced that
A market-disrupting force has emerged with gooseberries. To reach online
from the hinterlands of India, challenging consumers faster (Grofers and Big Basket
the high and mighty sultans of the FMCG now stock Patanjali products), it must have
highlands. manufacturing units and warehouses across
the country.
Will it hold on to its momentum going Patanjali's product portfolio is unwieldy.
forward or crumble under its own weight? That's a challenge that Mudra and McKann
As of now at least, PAL rivals are Erickson, who have been roped in to handle
frantically looking for a soothing balm to advertising for Patanjali, will have to
calm their frayed nerves. Perhaps they can overcome. From a zero-advertising strategy,
rush to the nearest Patanjali store for a Patanjali has done a U-turn, emerging as
magic potion. the third biggest television advertiser in the
country.
Also the brand has moved into e-commerce
besides being available with retail chains Another challenge is brand loyalty.
and under its own distribution centres. The Will it emerge as a key force strong enough
Ramdev Medicines brand is ready for export to make consumers switch their long-
with foreign exchange earning potential standing affinities with other brands? PAL
and could be a great success if marketed does have the advantage of a single brand
successfully given the weakness that the that could enable brand equity seamlessly
West has for both Yoga and Herbal spread from one product to another.
alternatives. The larger issue before the company would
be to chart the best route to traverse the
There is a huge gap between demand and trade supply chain. Until now, their voyage
supply, admits Acharya Balkrishna, MD of has been rather simple – goods from the
Patanjali Ayurved, who's recently been in factory went to a distributor and then
the news for his 94% stake in the directly to the exclusive store network.
organisation. (A development touted as a Now that PAL wants to boost sales
strategic move to take the limelight off phenomenally, it will have to rapidly grow
Baba Ramdev who has been the face of the distribution coverage.
company all this while). Balkrishna tells us
that besides 1200 Patanjali Chikitsalayas, No wonder, it targets to make its products
2500 Aarogya Kendras, 7000 open stores in available in 2mn stores by the end of 2016
villages, and 5600 marketing vehicles, his as against the current 0.2mn stores. This
team is working on launching 250 mega leap would make the supply chain
34
stores in Tier1, 2 cities exceedingly complex, especially for a
company like PAL which does not have
34http://economictimes.indiatimes.com/arti systems to track secondary sales, nor a large
cleshow/52306425.cms?intenttarget=no&ut and disciplined sales force.35
m_source=contentofinterest&utm_medium
=text&utm_campaign=cppst It's also not clear if Patanjali will be able to
The push for high growth comes with profitably scale up its foods operation, or if
challenges. Sourcing of raw material, for it will remain largely a niche personal care
34http://economictimes.indiatimes.com/articleshow/52306425.cms?intenttarget=no&utm_source=contentofinterest&utm_medium=
text&utm_campaign=cppst
business—an Indian Body Shop. 2. SWOT Analysis of PAL; its core

competencies.
Getting the right Talent is also an issue for 3. Will the Swadeshi concept work in the
PAL as the organization does not follow a western influence Indian economy?
corporate culture, but a SATVIK culture 4. The business model as "social
wherein an employee who believes in entrepreneur, does it work with
spiritual and Indian culture, one who does Marketing guru Baba Ramdev.
not consume alcohol products and one who 5. Does Baba Ramdev's strong follower
is follower and believer of Yoga is only base help Patanjali to gain a rising
hired. PAL does not hire from IIM's or market share in the FMCG business?
other B-schools as of now.36 6. How to make PAL's Distribution
muscle strong?
Questions to Discuss:
1. How did Baba Ramdev and PAL climb
such heady heights?
Figure 1: Drivers of Ayurvedic FMCG
Figure 2: Baba Ramdev and Patanjali
116011300291_1.html
Figure 3: Rags to Riches journey of Yoga Guru
Figure 4 : Decryption of PAL
Figure5: Revenue Growth
37 http://epaper.thehindu.com
38 http://www.thehindubusinessline.com/multimedia/dynamic/02648/BL08_IF_Patanjali__2648383
Figure6: revenue growth graph
Figure7: EBITA Margins for PAL
39 C.Narayan (2015, Dec, 08): The monk who wants a billion dollar company. Business line Retrieved From http://epaper.
thehindubusinessline.com
40 S. Malviya (2016, 22, March): Baba Ramdev s Patanjali may soon overtake FMCG biggies like Dabur, Marico and
godrej. Retrieved from http://epapertheeconomictimes.com
41 http://economictimes.indiatimes.com/magazines/brand-
equity/could-distribution-be-patanjalis-achilles-heel/articleshow/52306425.cms?intenttarget=no
Figure 8: Net Profit (Rs Crore) of FMCG Giants
Figure 9: Companies FY 16 sales till 31st December ( Rs Crore)37
Figure 10: Patanjali Product Portfolio
42 https://en.wikipedia.org/wiki/Patanjali-Ayurved
43 https://en.wikipedia.org/wiki/Patanjali-Ayurved
Figure 11: The Patanjali Portfolio38
Figure 12: Price comparison- Patanjali vs Others39
Figure 13: PAL Prices with respect to Competitors40
Figure14: Quick take by Neilsen Research41
Figure 15: Baba Ramdev’s Twitter Page
Figure 16: Facebook Page42
Figure 17: Patanjali Exclusive Outlets
Figure18: Patanjaliayurved.net website
Figure 19: Patanjaliayurved.org website43
QUOTES
“No problem of human making is too great to be overcome by human ingenuity,

human energy, and the untiring hope of the human spirit.”
William J Clinton
“Once we believe in ourselves we can risk curiosity, wonder, spontaneous delight or

any experience that reveals the human spirit”
E. E. Cummings
“Hope is some extraordinary spiritual grace that God gives us to control our fears,
not to oust them.”
Anonymous
“Survival is not so much about the body, but rather it is about the triumph
of the human spirit.”
Anonymous
CASE STUDY
Project Management For Public Goods –

The Case Of Indian Railway
Dr. Mahesh Gadekar*
ABSTRACT
The importance of project management has been highlighted by number of organizations by citing the
contribution in their turnover. It has contributed significantly towards the goals of profit maximizing,
resource utilization and cost management. However, the role of project management is much wider and
comprehensive in the emerging markets. The case attempts to explore one of the emerging market ie.
India. India is one of the challenging markets in terms of severe resource constraints and making of
services available in most affordable and effective way. The present case explores the role of project
management in Indian Railway which is one of the massive public sector organizations. The case provides
valuable comprehensions into the adoption of the project management and various issues experienced by
the organization. The insights are significant for project managers, organizations and policy makers.
KEYWORDS: Infrastructure, Indian Railways, Project Management, India, Emerging Market
Introduction - Importance of Project the globe had increased expenditure in

Management varied areas in the home economy.
One of the justification for the government
Literature has discussed the importance of participation was the presence of public
public goods and also stressed the goods or merit goods. Public goods are goods
Government's role in creation of public which are jointly consume unlike of private
goods. The concept of welfare state was one goods. Hence roadways, bridges, garden,
of the focal point of the development dam etc are public goods. Supporters across
economists. The antecedents of the welfare the globe have insisted on the presence of
state may be linked with the arguments of government participation for the creation
economist Lord John Maynard Keynes and sustenance of public goods. The
towards the underemployment economy Government of India in the 60s had
which had been highly susceptible towards kickstarted number of projects i.e. basic and
the recession/depression. Keynes stressed on key sector industries to push the economy.
the role of the Government by explaining The simple strategy was to push the basic
the concept of multiplier effect and pump and key sector industries for speedy
priming process. Keynesian economics momentum of the allied industry and boost
dominated the world economy in the 20th the economy. The policy may be categorized
Century wherein the Governments across into the unbalanced growth approach which
*Dr. Mahesh Gadekar, Faculty, Vishwakarma Institute of Management, Pune

Email: maheshgadekar@yahoo.com
Project Management for Public Goods – The case of Indian Railway
is essential when majority of the sectors are 402.80 billion (US$6.0 billion) from
witnessing an uneven growth. The passengers tickets. Railways were first
relevance of basic and key sector industries introduced to India in the year 1853 from
have not diminished in the present era Mumbai to Thane. In 1951 the systems
especially the post liberalized period ( Post were nationalised as one unit, the Indian
1991). In other words, the post liberalized Railways, becoming one of the largest
era, has opened new opportunities and networks in the world. Indian Railways
challenges before the public sectors. The operates both long distance and suburban
post 1991 period highlights the loosening of rail systems on a multi-gauge network of
stringent rules and regulation for foreign broad, metre and narrow gauges. It also
investment, collaborations and market owns locomotive and coach production
expansion. Significant number of public facilities at several places in India, with
sectors were facing revenue constraints. assigned codes identifying their gauge, kind
The revenue constraints were not limited to of power and type of operation. Its
the post liberalized era rather number of the operations cover twenty nine states and
public sector companies were experiencing seven union territories and also provide
severe revenue constraints during the pre limited international services to Nepal,
liberalized era. Bangladesh and Pakistan. 1
Indian Railways is the world's seventh
Indian Railway largest commercial or utility employer, by
number of employees, with over 1.376
Indian Railways is an Indian state-owned million employees as of last published
enterprise, owned and operated by the figures in 2013. Indian Railways's rolling
Government of India through the Ministry stock comprises of over 245,267 Freight
of Railways. It is one of the world's largest Wagons, 66,392 Passenger Coaches and
railway networks comprising 115,000 km 10,499 Locomotives (43 steam, 5,633
(71,000 mi) of track over a route of 67,312 dieseland 4,823 electric locomotives).The
km (41,826 mi) and 7,112 stations. In trains have a 5 digit numbering system and
2014-15, Indian Railways carried 8.397 runs 12,617 passenger trains and 7,421
billion passengers annually or more than 23 freight trains daily.As of 31 March 2016,
million passengers a day (roughly half of 27,999 km (17,398 mi) (41.59%) of the
whom were suburban passengers) and total 67,312 km (41,826 mi) route length
1058.81 million tons of freight in the year. was electrified. Since 1960, almost all
In 2014–2015 Indian Railways had electrified sections on Indian Railways use
revenues of 1,634.50 billion (US$24 25,000 Volt AC traction through overhead
2
billion) which consists of 1,069.27 catenary delivery.
billion(US$16 billion) from freight and
1 https://en.wikipedia.org/wiki/Indian_Railways
2 https://en.wikipedia.org/wiki/Indian_Railways
Table 13
Challenges of Indian Railways towards its passenger, it has been most

preferred by the travellers. However, there
The railways have been one of the are number of challenges of Indian
affordable and secure choice of millions of Railways.
travellers in India. The network of the
Indian railways is marvellous in terms of its 1)Inability to meet the demands of freight
reach and diversity. Due to numerous and passenger
benefits that the Indian railways envision
4
Table 2
3 http://www.indianrailways.gov.in/railwayboard/uploads/directorate/finance_budget/Budget_2015-16/White_Paper-_English.pdf
2) Under Investment
5
Table 3
3) Low Productivity of Indian Railways when compared with other countries

Table 5
4) High Number Of Accidents

Table 66
The challenges of Indian Railways are natural opportunity for customers to re-
numerous and are inter-linked. Indian examine their business needs, improvement
Railways stands for the comprehensive in predictability, bringing the projects on
network that connects cities and villages schedule.8
across the length and breadth of the
country. However, the micro level The State of the PMO 2010 reported that
challenges and their interlinkages need to PMOs9:
be identified and also a process of industry  Decreased failed projects by 31 percent
validated performance mapping system  Delivered 30 percent of projects under
need to evolve. budget
 Demonstrated a 21 percent
Project Management As A Feasible improvement in productivity
Options  Delivered 19 percent of projects ahead
of schedule
According to association of project  Saved companies an average of
management , “Project management is the US$567,000 per project.
application of processes, methods,
knowledge, skills and experience to achieve Project management is one of the feasible
7
the project objectives” Number of option as helps in determining the
organizations are embracing the project implementor the reasons to undertake. It
management due to reduction in risks, also assists in understanding the risk,
costs, improvisation in success rates, various approaches towards of the project
discipline approach, competitive advantage, thereby helping to predict the costs of the
deliverance of better results, creation of project.
7 https://www.apm.org.uk/WhatIsPM#WhatisPM
8 http://www.pmi.org/-/media/pmi/documents/public/pdf/white-papers/value-of-project-management.pdf
9 State of the PMO 2010, PM Solutions, May 2010. Results based on a survey of 291 management employees cited by http://
www.pmi.org/-/media/pmi/documents/public/pdf/white-papers/value-of-project-management.pdf
Project Management As One Of The IT application which would cover the

Alternative For Public Goods/ Merit entire lifecycle of complex projects. It is a
Goods step in leveraging resources which would
empower railways in transforming the way
Public goods are difficult for the market projects are designed, built and
mechanism due to the existence of free commissioned," PMIS would use drone
rider problem. Free rider problem refers to recordings and CCTV footage to monitor
the problem wherein an individual receives the projects.The minister said PMIS would
the benefits but avoids paying it. The be helpful in implementing upcoming
existence of free rider problem is major railway projects on time and save
detrimental to the market mechanism. The money. The plan is to roll out PMIS to all
remedy of the problem lies in the the major projects across the country. It will
cooperation and coordination and help in online monitoring, mid course
enforcement in the system. The above role corrections to ensure faster execution of the
can be fulfilled and the problem of free rider projects. The railways will save crores of
can be reduced through the Government money if projects are implemented on or
10
intervention. Though the Government has before time .
intervened in releasing the public goods/
merit goods, however the feasibility of Hence the implementation of project
provision of public goods is highly desirable management in Indian Railways will help -
in terms of effectivity and efficiency.  Monitoring the projects
 In implementing upcoming major
The role of technology enabled monitoring railways projects
of the public goods is therefore desirable  Mid course corrections to ensure faster
especially for the developing countries due execution of the projects
to existence of severe resource constraints.  Availability of information on public
The provision of public goods has been one domain
of the prime responsibility and priority of  A tool for performance evaluation
the Indian Government since  Economic benefits
independence. Five year plans have  Extensive and continuous monitoring
emphasised on the importance of the role of  Leveraging resources
the Government towards welfare state.  Empowerment of Indian Railways in
However, there is a need to application of terms of the way projects are designed,
systemic approach towards the monitoring built and commissioned
and execution of development projects.
The scope of project management cannot
Indian Railways has recently announced be limited to the Indian Railways. There
the web based project monitoring system. are number of projects especially the public
Railway Minister Suresh Prabhu launched goods and development projects that needs
the Project Management and Information utmost attention in terms of project
System (PMIS) which would enable the management. Some of the futuristic areas
railways to monitor online the progress of for the project management for the
ongoing projects across the country. Indian development projects and public goods can
railway stated that "PMIS is a web-enabled be - Public Distribution System, Drought
10 http://gadgets.ndtv.com/internet/news/indian-railways-launches-web-based-project-monitoring-system-833486
Assistance, Disaster Management, merit goods. The use of project

Rehabilitation and Displacement management will help in assisting the
Programme, Mid Day Meal Programme, government, organizations, policy makers
Distribution of Subsidies, etc. and practitioners for monitoring and
scheduling the project. The scope of project
The above case attempted to explore the management is therefore desirable to be
scope of project management. Project explored and practice for the effective
management can be applied for public / provision of merit goods.
QUOTES
“The human spirit is as expansive as the cosmos.

This is why it is so tragic to belittle yourself or to question your worth.
No matter what happens, continue to push back the boundaries of your inner life.
The confidence to prevail over any problem, the strength to overcome adversity and
unbounded hope – all reside within you.”
Daisaku Ikeda
“Nothing in life is to be feared, it is only to be understood.

Now is the time to understand more, so that we may fear less.”
Marie Curie
The real source of wealth and capital in this new

era is not material things, it is the human mind, the human spirit,
human imagination, and our faith in the future.
Steve Forbes
“Is costs $0.00 to be a decent human being.”
Anonymous
“I believe in the power of the human spirit.”
Bob Harper
RESEARCH
Developing A “Theoretical Toolbox”

For The Concept Of Consumerism
Dev Narayan Sarkar* & Dr. Kaushik Kundu**

ABSTRACT
The present study provides a framework for future research on consumerism through the application of a
definite number of theories applicable to consumerism. From the viewpoint of more generally accepted
theories on consumerism, we consider the implications for consumerism offered by theory of
postmodernisation, social capital theory, citizenship theory, theory of reflexive modernisation, time
displacement theory, bounded rationality, stakeholder theory, and societal marketing concept. These
theories help in explaining the citizen activism aspects of consumerism. However, the preoccupation of
society with the acquisition of consumer goods and services also forms an important part of the sphere of
consumerism. While the developed world is preoccupied with the promotion of the interests of consumers,
societies in the developing, world are still concerned with the acquisition of consumer goods. Scholars and
practitioners may gain pertinent insights by exploring the theoretical foundations of consumerism in the
available literature on anthropology, cultural studies, sociology, psychology and history. Such a search
for theoretical bases of “consumerism” in hitherto underexplored disciplines, combined with the more
generally accepted theories, may provide a toolbox for a better understanding of the preoccupation of
society with the acquisition of consumer goods. The present study considers how each theory can help
researchers to better comprehend the ways in which consumers, marketers, and society view
consumerism, and insights are developed from the simultaneous analysis of related theoretical
perspectives.
KEYWORDS: Consumerism, Toolbox Of Consumerism, Theoretical Bases Of Consumerism;

Anthropology, History, Marketing, Psychology, Sociology
Introduction: an Indian would barter all he had

(Flandreau, 1925). Such studies highlight
Anthropological studies have highlighted the fact that consumerism may be as old as
the eagerness of the Indians for trinkets, time itself. Intermingled history of
beads, bright coloured cloths and blankets, colonialism and consumerism has been
knives, guns, and other manufactured often studied by historians and
articles, not to mention whiskey, for which anthropologists (e.g., Mintz, 1985; Norton,
*Dev Narayan Sarkar, Ph.D. Scholar, University of Calcutta, India And Associate Director, PepsiCo India, Kolkata
Email: devnarayan.sarkar@gmail.com
**Dr. Kaushik Kundu, Associate Professor, Department of Management and Business Administration,
Aliah University, Kolkata
Email: kau_kun@rediffmail.com
Developing A “Theoretical Toolbox” For The Concept Of Consumerism
2006) who have studied the effects of underreported foundations of consumerism.

consumerism on ancient and contemporary Scholars and practitioners may gain
societies. Historians and archaeologists, pertinent insights by exploring the
Fournier and Sh (2014) correlated theoretical foundations of consumerism in
colonialism with the rise of consumerism in the available literature on anthropology,
the Aztec civilization. The love for cultural studies, sociology, psychology and
European goods and production techniques history, apart from the ones extant in
made the Aztecs dependent on Europeans marketing literature. Such a search for
and led to their ultimate subjugation theoretical bases of “consumerism” in
(Norton, 2006). With colonialists coming hitherto underexplored disciplines may
into Latin America, the indigenous provide a toolbox for a better understanding
population aspired to the high-energy, of the preoccupation of society with the
intensive consumerism (Bauer, 2001). acquisition of consumer goods.
Despite such inferences on consumerism in
extra-marketing literature, marketing Consumerism seeks to reiterate the moral
scholars have persisted in underrepresenting dimension of consumer choice by
the relevant theories from anthropology, highlighting the connections between
history, psychology, and sociology in production and consumption in all societies
consumerism studies. (Gabriel & Lang, 2015). “Consumption,
consumerism, consuming, price and
Pattaro and Setiffi (2017) categorized the material culture are all crucial to our
available research works on consumerism understandings of twentieth-century history
(last forty years of research) on the basis of and must be accorded the same historical
three key concepts: a) “critical significance as notions of production, work,
consumption”, used as synonym of “political the wage, and perhaps all the ideologies
consumerism” and closely tied to the associated with a productivist mentality”
avoidance of certain products; (Hilton, 2003, p. 1). In the final analysis,
b) “responsible consumption”, more tied to they are perhaps more important: as one
the characteristics of the product; and recent historian of twentieth-century
c) “conscious consumption”, which is based American commercialism put it,
on the acquisition of a more general 'consumerism was the “ism” that won'
knowledge about products purchased. All (Cross, 2000).
the three concepts relate to the consumer
activism viewpoint of consumerism. The Merriam-Webster dictionary defines
Inherent in this argument is an important Consumerism (2004) as the promotion of
avenue for future research in the context of the consumer's interests; or the theory that
developing economies, where societies are an increasing consumption of goods is
still engrossed with the acquisition of economically desirable; or also a
consumer goods. The present study aims at preoccupation with and an inclination
constructing a research-toolbox using the toward the buying of consumer goods.
generally-used theories, as well as, the Consumerism (2007) is defined by The
Shorter Oxford Dictionary as the Consumerism can be seen as the ultimate

protection or promotion of the interests of expression of the marketing concept since it
consumers; or the preoccupation of society compels companies to think from the
with the acquisition of consumer goods. consumer's perspective. In one sense, there
Etymologically, Consumerism (2016) is is a philosophical conflict between the
either "protection of the consumer's existence of consumerism and the
interest," from consumer + -ism; or as marketing concept, because if the
"encouraging consumption as an economic marketing concept were operating properly,
policy". there should be no need for consumerism.
However, the diversity of consumer needs
The Routledge Dictionary of Economics means that it is virtually impossible to
defines Consumerism (1995) as the produce products that satisfy every
concerted action to make firms pursue the individual's needs. Secondly, organizations
interests of consumers, even at the cost of must produce goods within certain cost
shareholders' incomes. Action can take the parameters to ensure profit. Thirdly, not all
form of lobbying parliaments for legislation, organizations have embraced or
protest marches and legal suits. In response implemented the marketing concept fully.
to these campaigns, many Western
countries since the 1960s have introduced Dictionary of Marketing defines
elaborate consumer protection legislation to Consumerism (2014) as the activities
ensure that consumers get a fair deal before, concerned with protecting the rights and
during and after buying a good or service. interests of consumers. “Organized activity,
The Advanced Dictionary of Marketing mainly by pressure groups, aimed at
defines Consumerism (2008) in two ways: improving and safeguarding consumer
the most commonly understood meaning of interests” is the manner in which The
the concept of consumerism is that of a International Dictionary of Marketing
movement of organized advocacy of defines Consumerism (2002). All other
consumer rights and power relative to marketing dictionaries scrutinized by the
sellers, where the aim is to protect and authors (e.g., Consumerism, 1994; 1997;
improve consumer rights; an alternate 2006; 2008) provided a similar viewpoint of
meaning of the term is that of equating consumerism. Such definitions of
personal happiness with the purchase and consumerism in generally-accepted
consumption of material goods. marketing dictionaries highlight possible
lacunae in research. While the developed
The Blackwell Encyclopaedic Dictionary of world is preoccupied with the promotion of
Marketing suggests that (Consumerism, the interests of consumers (Pattaro &
1999) involves those activities of Setiffi, 2017), societies in the developing,
government, business, independent world (nliz Ger & Lascu, 1993; Okechuku,
organizations, and consumers themselves & Onyemah, 1999) are still concerned with
which help protect consumers against the acquisition of consumer goods.
unfair or unethical business practices.
The disciplines of anthropology, economics, analysis (Baudrillard, 1998). The Sage

history, psychology, and sociology have dictionary of cultural studies (Barker, 2004)
contributed to the development of suggests that consumerism is at the heart of
marketing theories (Sheth & Parvatiyar, a postmodern culture that is constituted
1995). The Routledge dictionary of through a continual flow of images that
economics (Rutherford, 1995) defines establishes no connotational hierarchy and
“consumerism” as the concerted action to thus no sense of value. This is said to be a
make firms pursue the interests of culture in which no objects have an
consumers, even at the cost of shareholders' 'essential' or 'deep' value, rather, value is
incomes. Action can take the form of determined through the exchange of
lobbying parliaments for legislation, protest symbolic meanings (Barker, 2004). That is,
marches and legal suits. In response to these commodities have sign-value established
campaigns, many Western countries since through advertising that confers prestige
the 1960s have introduced elaborate and signifies social value, status and power.
consumer protection legislation to ensure contemporary developments in television
that consumers get a fair deal before, during organization and funding across our world
and after buying a good or service. Oxford have placed visual-based advertising and
dictionary of economics (Black, consumerism at the forefront of culture
Hashimzade, & Myles, 2003) defines (Barker, 2004). A commodity is not an
consumerism by taking the view that where object with use-value but a commodity-sign
the interests of consumers and producers so that postmodern culture is literally and
clash, the law should take the side of metaphorically 'superficial'. Ironically, as
consumer protection against firms' profits or Willis (Willis, 1977) argued, it is capitalism
their workers' job security. Scrutinizing and the expansion of consumerism that
these definitions, it may be inferred that have provided the increased supply of
literature from the sphere of economics symbolic resources for young people's
reflects a definition of consumerism that is creative work. Capitalism (in the world of
similar to the ones forwarded by work) may be that from which escape is
dictionaries of marketing. We have, sought but it also provides the means and
therefore, excluded the much explored medium (in the domain of consumption) by
literature from the disciplines of marketing which to do so. Thus, it is argued that the
and economics from further analysis in the consumption practices of youth cultures are
present study since our objective is to able to offer resistance to the apparent
present some unexplored theories that may passivity and conformity of consumer
explain phenomenon in the sphere of culture.
consumerism.
Consumerism has been recognized a topic
Scholars of cultural studies, however, of study by anthropologists also, starting
provide a different viewpoint. Sign-value with the arguments by Augé (1992)
has replaced the use-value or exchange- regarding the importance of consumerism
value of commodities that is central to this in present societies as well as for rethinking
the role of contemporary anthropology in 'post-traditional society'. Post-modernists

making sense of contemporary conditions. like Baudrillard (1998) have approached
In another anthropological study, Radin consumerism as the semiotic code
(1952; 1957) was led by this train of constituting post-modernity itself:
thought to a critique of North American ultimately, signs are consumed, not objects.
society itself. Aboriginal civilisations Such consumption seems to provide a sense
excelled in respect for individual persons, of self-identity in modern societies where
integration of social and political life with pluralization of communities is blurring self-
the experience of individuals, and concern identities based on traditional notions.
for the subsistence needs and emotional
well-being of every member of the All dictionary definitions of consumerism
community These humane values had been advocate an exploration of the
diluted in the North American rush phenomenon from either a consumer
towards economic success and consumerism activism viewpoint or from a viewpoint that
(Radin, 1952; 1957). This leads us to purchase and consumption of goods and
enquire about the historical bases of services may lead to personal happiness and
consumerism. contentment. Empirical research on
consumerism has expanded to levels that
The “economic” (Chicago School) theory have warranted review papers (e.g., Pattaro
of regulation, i.e. the shortage of consumer and Setiffi, 2017) and handbooks (e.g.,
goods, may have led to the preoccupation of Kaufmann, 2014) on the subject. These
society with the acquisition of consumer review papers and handbooks present a
goods (Tiemstra, 1992). Wilson’s (1971) chronology of empirical studies. However,
political theory of regulation accounts for we agree with Webster (2009, p. 22) that
these phenomena when interpreted in “marketing has been more data-driven than
historical context. This theory suggests that theory-driven,” which emphasizes the need
regulation can indeed serve the public for a sound theory base to understand the
interest by preventing the rush to acquire interplay between consumerism issues (like
and hoard consumer goods. However, environmental and social sustainability)
consumer activism for deregulation in the and marketing. Thus, as in other areas of
developed world made the acquisition of marketing, the theories that marketing
goods and services easier and the focus of scholars use to analyze and describe
studies soon shifted to the political and phenomenon in consumerism remain
activist aspects of consumerism (Tiemstra, unfledged (Carraher et al., 2008). As
1992). An alternative historic reason for consumerism continues to grow as a
consumerism is presented by Giddens significant concern for marketers (Lysonski,
(1991) who suggested that consumerism is Durvasula, & Watson, 2003), researchers
simultaneously the cause as well as the must offer new insights that build upon
therapeutic response to the crisis of what we know about consumerism and
identities emanating from the pluralization begin to develop a more theory-based
of communities, values and knowledge in conceptualization of consumerism. Toward
this end, the present study draws on a set of further studies of the phenomenon in
well-established theoretical perspectives to consumerism.
articulate what they can offer about
consumerism for researchers. Relying on 1.THEORETICAL PERSPECTIVES
theories that have demonstrated their APPLIED TO CONSUMERISM
usefulness for explaining phenomenon
related to consumerism should instil a In the twentieth and twenty-first centuries,
measure of confidence in the insights consumer movements and marketplace
derived from them (Lundberg 2004). rebellions were often labeled as
“consumerism” (Van Laer & Van Aelst,
The purpose of the present study is to 2010). Nader (1968, p. 27) defined
stimulate thoughts on how phenomenon in consumerism as “a term given vogue
consumerism may be explained in future recently by business spokesmen to describe
research and to provide a broad conceptual what they believe is a concerted, disruptive
foundation for that research. Recently, ideology concocted by self-appointed
Shook et al. (2009) leveraged ten theories bleeding hearts and politicians who find
to set an agenda for research on strategic that it pays off to attack the corporations”.
sourcing, while Connelly et al. (2011) In conventional words, consumerism
highlighted nine theories that can be used highlights a consumer's right for protection
for research on sustainability. The present against adulterated, deficient, or unsafe
article takes a similar approach by products and services (Van Laer & Van
developing a “theoretical toolbox” that Aelst, 2010). For Buskirk and Rothe (1970,
researchers can use to build knowledge p. 64) “consumerism is attempting to tell
about consumerism. industry something their research has not
found, or that management has rejected or
The present work begins with a review of ignored”. Kotler (1971, p. 49) defined
the existing research on some pertinent consumerism as “a social movement seeking
theories from the disciplines of to augment the rights and powers of buyers
anthropology, cultural studies, marketing, in relation to sellers”. Consumerism
sociology, psychology and history. Drawing mobilizes the energies of businessmen,
on the review of existing literature, it consumers, and government leaders to
analyses the theories that are applicable for search for solutions and improve society,
explaining phenomenon in consumerism. and ensures short-term and long-term
These theories are presented as a toolbox values for consumers (Kotler, 1971).
for consumerism research (tabular form and
diagram). The applicability of the toolbox Kotler (1971) found three discrete waves of
to explain phenomenon in consumerism is U.S. consumerism movements in the early
explained using some examples. Finally, it 1900s, the mid-1930s, and the mid- 1960s.
suggests certain implications for further According to Herrmann (1970), these three
research and practice. Using these eras have significant common facets: 1)
identified theories, researchers can conduct each movement happened during economic
and social unrest where rising prices of Francois-Lecompte and Roberts (2006)
goods accompanied decreasing incomes; 2) developed a scale to measure socially
with constrained financial ability, responsible consumption with five factors:
consumers were forced to protest by joining corporate responsibility, country of origin
efforts to voice their rights; 3) consumers preferences, shopping at local or small
started fighting for their own interests since businesses, purchasing cause-related
they were challenged by their declining products and reducing one's consumption.
purchasing ability. Webb, Mohr and Harris (2007) developed a
scale with three dimensions to measure
Webster (1975) defined the socially socially responsible consumption: 1)
conscious consumer as “a consumer who purchasing based on firms' corporate social
takes into account the public consequences responsibility (CSR) performance; 2)
of his or her private consumption or who recycling and 3) avoidance and use
attempts to use his or her purchasing power reduction of products based on their
to bring about social change” (p. 188). environmental impact.
Such a definition is based on the argument
that the socially conscious consumer must Extant studies on consumerism often use
be aware of social problems and must certain central concepts/theories to explain
believe that an impact on society may be the observed phenomenon. It may be
made through individual purchase pertinent to summarize some of the theories
decisions. Socially responsible consumer that have helped in studying consumerism.
behavior has been defined as, “a person These identified theories and concepts may
basing his or her acquisition, usage, and be arranged into a quick-reference list, or a
disposition of products on a desire to toolbox, that may guide future studies and
minimize or eliminate any harmful effects help in interpreting phenomenon observed
and maximize the long-run beneficial during empirical studies. The key insights
impact on society” (Mohr et al., 2001; p. that emerge from each theory are described.
47). Collectively, these individual choices These theories are in no particular order of
have the ability to go beyond the actions of importance or chronology. Table 1
individuals to shape political movements summarizes the key premise of each theory
that may have far-reaching consequences and point out some possible applications for
(Merlucci, 1988; Klein, 2000). Market research on consumerism. Figure 1 presents
choice is pointed out as the wrench by a listing of the identified theories in the
which consumers may influence ''with the form of a diagram.
goal of changing objectionable institutional
or market practices'' (Micheletti et al.,
2003, p. 2).
Sl. Theoretical
Representative literature Key premise Key insights for consumerism
No. perspective
Theory on postmodernization implies that The process of postmodernization and the related shift to more
societies in which citizens grow up in affluence post-materialist values (concerns for the environment, values of
Theory of Baudrillard (1970); Bennett
1 are becoming more value-oriented, a change that equality and personal integrity, inclusion of minorities, human
postmodernisation (1998); Inglehart (1997)
is affecting how citizens relate to politics and rights, sustainable development, etc.) encourage citizens to
other spheres of life. embrace consumerism.
Social capital theory suggest that the
Granovetter (1973); Putnam
embeddedness in voluntary associations makes it Political consumers are possibly better integrated and embedded
2 Social capital theory (1993, 2000); Hooghe and
easier for citizens to get involved in collective in such networks to enable consumerism.
Stolle (2003)
action.

Consumerism taps a political act that is not necessarily directed at
Delanty (2000); Elkin et al. Citizenship is exercised when citizens take
the government per se, but that it seeks new targets such as multi-
3 Citizenship theory (1999); Peters and Savoie responsibility in their relations to public and
national firms and international actors that can directly solve
(1995) even private institutions.
selected problems.
The theory of reflexive modernisation suggets
Theory of reflexive Citizens engage in consumerism because they lack trust in
4 Ulrich Beck (1997) that the modern state has severe steering and
modernisation government.
governability problems.
Time-displacement theory states that people
Maras (2006); Moy, Scheufele Less time working and shopping means more civic
Time-displacement have the same amount of time to spend, and
5 and Holbert (1999); Putnam
theory thus, if they start a new activity, they will have to
(1995)
decrease other activities. engagement
According to this theory, consumers are not Consumers often look at the various consumeristic
52
6 Bounded rationality Simon (1947) maximizing their utility, but make a choice as product/service certifications or how to properly judge the
soon as they find a satisfactory alternative. reliability of a brand or a certification.
The standpoint of stakeholder theory is that Since consumers are important stakeholders for marketing
companies should consider the impact of their organizations, these firms would have to be proactively
7 Stakeholder theory Freeman (1984) actions on all relevant stakeholders like consumeristic in their actions. In cases where organizations fail to
shareholders, customers, employees, suppliers, take cognizance of the welfare of consumers, independent action
environment, and community. by citizens may follow.
Table 1: A toolkit of theories for research on consumerism
Kotler and Zaltman's (1971); Societal marketing concept is doing business in a “A company's commitment to minimizing or eliminating any
Societal marketing
8 Mohr et al. (2001); Murphy and way that maintains or improves both the harmful effects and maximizing its long-run beneficial impact on
concept
Bloom (1990) customer's and society's well-being. society” (Mohr et al, p. 47).
Colonialism and consumerism has been claimed Cultural anthropology theorizes that “the ideology and practice of
by historians and anthropologists to be consumerism, the driving force of capitalism, is spread through
Colonialism/globaliz Lewellen (2002); Mintz (1985);
9 intertwined with each other. Consumerism has movies, television, radio, billboards, and the internet, breaking
ation Norton (2006); Turner (1993)

often historically started with the arrival of down traditional cultural values based on kinship and community”
colonialists. (Lewellen, 2002, p.11).
The national and spiritual unity, that is
In the present times, citizenship is often defined by shared values
undermined by forces such as sectarianism and
Theory of cultural and propensities, a primary one being the drive to procure goods
10 Delanty (2002); Miller (2007) secularism, is often restored by a shared drive to
citizenship that may help the citizen in identifying herself/himself with the
procure consumer goods and identify with a
community (Delanty, 2002).
common culture.
Prolonged periods of shortages or rationing of
Temporary or continued shortages may motivate consumers to
Skinner and Bryant (2007); consumer goods, as in many communist
11 Theory of regulation purchase and stock more of the goods. Shortages may also
Tiemstra (1992); Wilson (1971) economies in the past, often lead to people giving
motivate consumer activism to ensure better supplies.
in to the urge for buying and hoarding goods.
Source: Table constructed by authors as part of the present study
aWEshkar Vol. XXIII Issue 2 September 2017 WeSchool

Figure 1: Theories applicable to research on consumerism

(Sunrise model of consumerism theories)
Stakeholder
Theory
Source: Diagrammatic representation of the theories applicable to consumerism has been constructed by the
authors in the form of a rising sun
2.1. Theory of postmodernization necessitate a broader view of politics than

the ones commonly used in political science
Baudrillard (1970) argued that with the research. Postmaterialist values are
development of late modern capitalism associated with demands for more
follows a shift in the production/ individual autonomy, choice among
consumption circuit, where the symbolic products and services, self-expression, and
dimension of material commodities become political action (Bennett; 1998; Inglehart,
more important for the circulation of 1997). It is observed that the shift to
commodities in society. With this, postmodernization and postmaterialist
Baudrillard (1970) introduced the concept value orientations inspires political
of sign value, in addition to the Marxist consumerism.
concepts of use and exchange value. The
symbolic exchange value (the prestige of an 2.2. Social capital theory
object as signalled by its sign value)
replaces use of a product in postmodern Supporters of the social capital theory
societies (Denzin, 1986). Consumer goods propose that the embeddedness in
provide the user with a perceived status and voluntary social associations makes it easier
ownership through sign-value (Shukla & for citizens to involve themselves in
Purani, 2012). The brand has come to be collective action (Granovetter, 1985;
regarded as a concept, a sign value that has Putnam, 1995, 2000; Hooghe & Stolle,
become “the chief communicators of all 2003). This is because social-networks, such
that is good and cherished in our culture” as associations, have a socialisation
(Klein, 1999). function through which members acquire
social skills and generalised values and
Inglehart's (1981, 1997) theory on attitudes such as trust and they often get
postmodernization suggests that the enlisted for political acts (Almond & Verba
societies in which citizens grow up in 1963; Brady, Schlozman, & Verba 1995).
prosperity are becoming more value- Such networks may also connect citizens
oriented. Such a change is influencing the and governments directly (Stolle &
manner in which citizens connect to Hooghe 2003b). It seems that political
politics and other spheres of life. The consumers are possibly better integrated
process of postmodernization and the and embedded in socialnetworks. It may be
related shift to more post-materialist values pertinent to differentiate between the
(like concerns for the environment, values traditional face-to-face associations and
of equality and personal integrity, inclusion those groups with predominantly
of minorities, human rights, and sustainable chequebook memberships. While one
development) persuade citizens to discover stream of research argues that only
new avenues to express their private and organisations involving extensive face-to-
public pursuits and identities. The study of face contacts can influence democratic
political demands and expressions, which attitudes (Putnam 2000); another stream of
are based on postmaterialist values, studies claim that the impact of passive or
chequebook activism can also be persuasive venture into new forms of consumerism.
(Wollebæk & Selle, 2003; Hooghe, 2003a).
The attitudinal approach to social capital 2.4. Theory of reflexive modernization
theory focuses on the pivotal role of
generalised trust as an attitudinal The theory of reflexive modernisation
orientation that facilitates various forms of suggests that the modern state has severe
co-operation (Stolle 2002). Hence, steering and governability challenges
generalized trust is suggested to be an (Ulrich Beck, 1997). According to the
important influencer of political theory of reflexive modernization, new
consumerism. problem-solving ideas, arenas, and tools are
necessary to deal with political problems.
2.3. Citizenship theory Ulrich Beck (1997) used the concept of
“subpolitics” to capture the idea of politics
Political consumerism is suggested to be a emerging from responsible citizens in
political act that is not necessarily directed situations not traditionally viewed as
at the government, but that it seeks political ones. It is argued that citizens
objectives such as solving selected problems engage in “subpolitics” because they lack
related to multi-national firms and trust in government. They fear that
international actors. The premise of government either does not understand or
“citizenship theory” is that citizenship is cannot control the new uncertainties and
exercised when citizens take responsibility risks in our modern societies. This view has
in their dealings with public and even been highlighted by Ulrich Beck (1997, p.
private institutions (Elkin et al., 1999). 23) in his statement that ''if modernity is a
Citizenship theory suggests that politics is democracy oriented to producers, late
present in many spheres of life and modernity is a democracy oriented to
transcends the formal structures of the consumers: a pragmatic and cosmopolitan
nation-state (Delanty, 2000). New forms of democracy where the sleepy giant of the
citizenship seem important in the present sovereign citizen-consumer is becoming a
times, given the governance and counterweight to big transnational
globalisation challenges facing many corporations.'' The consumer seems to be
societies. Consumerism arises from the bestowed with the responsibility for a
distrust of citizens towards the government morally virtuous handling of technological
in the context of promises made by the change and the liberalization of world
latter. Governance reflects an trade.
understanding of the role of public, private,
and non-governmental institutions to take 2.5. Time-displacement theory
responsibility for citizen welfare and well-
being through collective action (Peters & Time-displacement theory (Maras, 2006;
Savoie, 1995). It may be inferred that Moy, Scheufele, & Holbert, 1999; Putnam,
concerns about governability and 1995) states that people have the same
ungovernability can motivate citizens to amount of time to spend, and thus, if they
start a new activity, they will have to awareness. Consumers are often confused
decrease other activities. Modern because of bounded rationality and time
conveniences like internet have saved time constraints where there are lots of options
for consumers (Chen, 2010). With free and an excess of information (Simon,
time, virtual networking is viewed as a way 1947). Following Simon (1947), economists
to reach out to similar others, who become as well as psychologists have focused on
submerged between networked cognitive constraints in decision making
communities and commercialized (Hanoch, 2002). Consumers often look at
communities (Cherrier & Murray 2002). the various consumeristic product/service
These virtual spaces help create feelings of certifications or how to properly judge the
belongingness and esprit de corps and reliability of a brand or a certification
support consumerism (Cherrier & Murray (Gabriel & Lang, 2015). The spread of
2002). Schor (1998) suggested that such consumerism as a core value has led to the
peer reference groups are necessary for use of purchase decisions based on the
downshifter (person who has come by spare environmental and societal concerns
time now because of technology) survival in demonstrated by organizations (Etzioni,
a consumer society. The implication of the 2010). Basing decisions on such limited
time-displacement theory for consumerism factors is a feature of decision making
is that less time working and shopping in following a bounded rationale (Etzioni,
the present times leads to more civic 2010; Gabriel & Lang, 2015). In a real
engagement (Shah et al., 2007). economy populated by economic actors
Availability of spare time leads to citizens with bounded rationality, instruments, like
striving to build social capital using the environmental certifications and safety
extra time (Moy et al., 1999). Consumer certifications, prove to be effective in
movements have indeed found an avenue driving the system towards given
on the internet (Parigi & Gong, 2014; sustainability goals (Gorgitano, & Sodano,
Ward & de Vreese, 2011). This is 2014).
exemplified by the worldwide anti-
sweatshop movement movement against 2.7. Stakeholder theory
Nike by consumers (Carty, 2002).
Since the publication of Freeman's (1984)
2.6. Bounded rationality landmark book, Strategic Management:
A Stakeholder Approach, scholars have
According to the theory of bounded acknowledged that consumers are an
rationality (Simon, 1947), consumers are important stakeholder in the success of
not maximizing their utility, but make a marketing firms. The standpoint of
choice as soon as they find a satisfactory stakeholder theory is that companies should
alternative using the consider the impact of their actions on all
limited/constrained/bounded information relevant stakeholders like shareholders,
they have. Such complexity is not simply customers, employees, suppliers,
related to the level of education or environment, and community. Stakeholder
theory allows the organization to consider a society (Peattie & Peattie, 2009). As such,
wider range of influencers when developing it can be used by anyone who claims (or
strategy and those earlier theories of the believes) that it may be used for the welfare
firm do not consider all of the “groups” that of society. Environmental marketing
influence organizational activities. expectations of organizational consumers
Marketers have also identified that the may be as straightforward as expecting that
existing theories of the firm are not products they use perform effectively
adequate and suggest that a broader range without unnecessarily harming the
of groups should be considered (Anderson, environment (Polonsky, 1995). Social
1982). By espousing the “marketing marketing could help to relate consumers
philosophy” firms attempt to design with the idea of sustainability and to
strategies that achieve the objectives of encourage a reduction in consumption by
both the groups, consumers and the shifting away from an over-reliance on guilt
organization (Polonsky, 1995). Since as a key driver (Peattie & Peattie, 2009).
consumers are important stakeholders for Organizations are addressing a number of
marketing organizations, these firms would environmental issues that are affecting
have to be proactively consumeristic in business-to-business marketing as well.
their actions. In cases where organizations Industrial marketers, therefore, are
fail to take cognizance of the welfare of encompassing environmental
consumers, independent action by citizens considerations in their products
may follow. (Drumwright, 1994; Keller, 1987).
2.8. Societal marketing concept 2.9. Colonialism/globalization and

consumerism
The origins of the term social marketing
can be traced to Kotler and Zaltman's Cultural anthropology theorizes that “the
(1971) article on the subject. Societal ideology and practice of consumerism, the
marketing concept is defined as conducting driving force of capitalism, is spread
business in a manner that sustains or through movies, television, radio,
enhances both the customer's and society's billboards, and the internet, breaking down
well-being (Kotler, 1991). “A company's traditional cultural values based on kinship
commitment to minimizing or eliminating and community” (Lewellen, 2002, p.11).
any harmful effects and maximizing its Colonialism and consumerism has been
long-run beneficial impact on society” claimed by historians and anthropologists
(Mohr, Webb, & Harris, 2001, p. 47). (e.g., Mintz, 1985; Norton, 2006) to be
Social marketing is supposed to be applied intertwined with each other. Consumerism
to achieving social good (Murphy & Bloom has often historically started with the
1990). The majority of social marketing arrival of colonialists (Norton, 2006).
programmes focus on altering behavior to According to cultural anthropologists (e.g.,
increase the well-being of individuals and Lewellen, 2002; Turner, 1993), colonialism
has been replaced by globalization in the acquisition of such goods (Tiemstra,

today's world as the cause of consumerism 1992). Temporary or continued shortages
in communities. may motivate consumers to purchase and
stock more of the goods. Shortages may also
2.10. Theory of cultural citizenship motivate consumer activism to ensure
better supplies.
Miller (2007) theorized that as sectarianism
and secularism overwhelm patriotism and 3. DISCUSSION
superstition, there is a loss of national and
spiritual unity. Such unity is often restored The theories discussed in the previous
by a shared drive to procure consumer section are presented in figure 1. The
goods and identify with a common culture. theories that seem applicable to research on
Citizenship had been held to be based on consumerism are shown as influencing
formal rights and had relatively little to do consumerism studies (Figure 1). From a
with substantive issues of cultural belonging research perspective, it is hoped that the
(Delanty, 2002). In the present times, present overview of a range of theories, will
citizenship is often defined by shared values help future researchers in scoping out their
and propensities, a primary one being the researches on consumerism. The conceptual
drive to procure goods that may help the expansion of research on consumerism may
citizen in identifying herself/himself with be based on the sound foundations of
the community (Delanty, 2002). An Indian central theories. While scholars have begun
living in USA may remain an Indian to apply some of the theories that have
citizen but may attempt to achieve the been discussed here (e.g., Drumwright,
cultural citizenship of USA by “catching up 1994; Keller, 1987), most remain largely
with the Joneses". unexplored. It is expected that research on
consumerism will progress and evolve as
2.11. Theory of regulation scholars begin to apply these theories,
which will almost certainly generate new
Prolonged periods of shortages or rationing research questions and provide more
of consumer goods, as in many communist explanatory value for consumerism
economies in the past, often lead to people practices that we observe in the present
giving in to the urge for buying and society.
hoarding goods (Skinner & Bryant, 2007).
Consumerism may also manifest itself in It is expected that researchers also will
activism against regulatory regimes to begin to combine multiple theoretical
enable easier acquisition of consumer goods perspectives to uncover rich and complex
(Wilson, 1971). The (Chicago School) ways of explaining individual and firm
theory of regulation suggests that behaviors with respect to consumerism. For
prohibition, rationing or constrained example, a consumerism that brings
availability of consumer goods often lead to together social capital theory and time
the increased preoccupation of society with displacement theory could provide
considerable insights. Activist consumers important stakeholders while citizenship

who are left with spare time (time- theory motivates consumers to take to
displaced) may form social networks (social activism to obtain their rights from firms.
capital theory) to protest against socially
unacceptable behavior of marketing firms. The dichotomy between consumers fighting
Organizations and governments are for their rights and firms considering
increasingly being besieged by citizens on consumers as important stakeholders may
social media on specific issues regarding yield certain interesting studies.
social, environmental or consumer well- Interesting contradictions may also arise
being. It may be interesting to research the when simultaneously exploring citizenship
triggers to using spare time for consumer theory and the concept of bounded
activism. rationality. While bounded rationality
assumes that consumers may not be aware
Another interesting combination of of the total impact of buying a product or
theories is theory of reflexive modernisation service on environment and society,
and citizenship theory. It piques the citizenship theory argues that citizen are
imagination to estimate at what point in aware of the impact of adverse practices of
societal evolution do citizens realize that firms. Such a contradiction may be resolved
government may not be able to protect by bringing into play time-displacement
their interests and that they have to get theory that contends that consumers in the
involved in consumeristic activism. present times have surplus time which they
Consumerism may vary by the economic use to connect with others over social
development level of a country and such media and indulge in citizen activism.
variation may be explained by the interplay
between reflexive postmodernisation theory In addition to combining and comparing
and the citizenship theory. the various theories described in the present
study, there may be opportunity for
In addition to complementary perspectives expanding the present research horizons by
among the theoretical bases, there may also introducing an international dimension
be contradictory views that arise as scholars into the research questions derived from
examine consumerism through different these theories. For example, we described
theoretical lenses. For example, societal how citizenship theory may be useful for
marketing concept urges marketers to keep explaining citizen activism within the
the consumer's interests in mind. However, sphere of consumerism, but increasingly
the concept of bounded rationality citizens may be located in different
indicates that marketers may influence countries. Citizens collaborating across
positive buying behavior by taking a countries for consumer activism may
certification for safety or environment behave somewhat differently, as observed in
friendliness. the activism against sweat-shops in the case
of Nike (Carty, 2002). Introducing an
Similarly, stakeholder theory urges firms to international dimension thus adds a layer of
consider consumers and society as complexity into citizenship theory that
could raise a whole new set of research richer conceptualization of consumerism

questions about consumerism. Similarly, that is managerially relevant and
theory of reflexive modernisation may be theoretically derived. Although the ideas
applicable differently to countries at laid forth in this paper are mainly aimed at
different levels of prosperity and future empirical investigation, they also
development. The time-displacement provide a foundation for managers to better
theory may also be applicable to differing understand how organizations may make
degrees in developing and developing decisions in the context of an increasingly
economies. The case of migrants and consumeristic society.
transnational managers present an
interesting research query. Those whose Some managers are already following the
formative years, experience, and education ideas that emerge from the theories
are associated with countries where described herein. For example, Nike had to
consumerism has weaved its way into the stop manufacturing its products at sweat-
fabric of society may have a heightened shops when it realized that the combined
sensitivity toward consumerism issues and effects of time-displacement theory
an increased capacity for citizen actions. It (consumers having more time to interact on
seems pertinent, at this stage, to explore the virtual social networks) combined with
implications of the present study for citizenship theory (citizen activism) was
managers. leading to declining revenues and
deteriorating brand value (Carty, 2002).
3.1. Managerial implications The popular business press contains
numerous anecdotes similar to this, but
From a manager's perspective, this systematic inquiry is necessary to determine
application of theoretical perspectives may the extent to which these theories explain
offer a comprehensive view of consumerism. various approaches to studying
For managers, consumerism may be consumerism.
somewhat like the elephant of Indian
legend that, when touched by blind men, is 4. CONCLUSION
thought to be a water spout (trunk), fan
(ear), pillar (leg), or throne (back). In the Consumerism has become a key concept to
same way, managers may view consumerism both organizations and marketing
mainly as an economic liability, a division researchers. Looking to the future, ongoing
that assesses environmental impact, a debate about political consumerism, socially
distinct market segment, or the conscious consumers and ethical
development of a triple bottom line. These consumerism seem likely to make
limited perspectives are at best incomplete consumerism even more important to
and at worst misinformed. By elucidating organizations and researchers. The theories
the theories that may be most pertinent to discussed in the present article provide a
consumerism and considering how they compelling “theoretical toolbox” that will
might be applied, the present study offers a help organizations and marketing scholars
understand consumerism in the years ahead.  Carraher, S. M., Buckley, M. R., &
These theories may be applied to various Carraher, C. E. (2008). Research
consumerism situations to understand the challenges in sustainable strategic
conceptual moorings of the situation. management: Change and
Sustainability, 1(1), 2–15.
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management: the wisdom of Peter
QUOTES
“Art is the highest expression of the human spirit”
Joyce Carol Oates
“To confine our attention to terrestrial matters

would be to limit the human spirit.”
Stephen Hawking
“The human spirit is not dead. It lives on in secret….

It has come to believe that compassion, in which all ethics must take root,
can only attain its full breadth and depth if it embraces all living creatures
and does not limit itself to mankind.”
Albert Schweitzer
“So long as the human spirit thrives on this planet,

music in some living from will accompany and sustain and
give it expressive meaning.”
Aaron Copland
RESEARCH
'Mobiles, Email, Web-chats,... Everywhere.

How Do Organized Retailers Unleash Their
Potential When Battling E-tailers?'
Suja R. Nair* & Harikrishna Maram**

ABSTRACT
Growing consumerism calls for all types of retailers to deliver quality product/service offerings and
differentiated experiences in line to consumers' needs and preferences. Tech savvy consumers of today
are engaged in multichannel buying behaviour and are not loyal to any particular format. Unorganized
retailers are redoing their outlets to match competition and organized retailers (including e-tailers) are
stretching themselves-all in an effort to offer consumers the 'differential experience'. The Indian retail
market poses tremendous challenges for all retailers, so instead of competing with each other it is felt that
leveraging integrated efforts would be more beneficial. However, this will be very challenging with all
retailers required to structure their internal and external processes with suitable technological and
physical infrastructure so as to be able to understand both clicks (e-tailing) and bricks (physical stores)
consumption needs. This paper discusses issues concerning integrating all types of retailers and also
proposes a framework to analyse whether the path ahead of Indian retail can be moulded to suit this move.
KEYWORDS: Organized Retailers, Un-organized Retailers, E-tailers, Multichannel Buying,

Leverage Integrated Efforts.
RESEARCH TYPE: Review Paper
Introduction tremendous opportunity in an emerging

retail market like India has attracted not
Retailing is defined as the set of business only global retailers such as Wal-Mart,
activities that adds value to the products Metro etc. but also the online/e-tailers.
and services sold to consumers for their
personal or family use (Levy, Weitz, Pandit, With technology at their figure tips and
and Beitelspacher, 2012). Although easy access to Internet, customers are
retailing practices has been in vogue since comfortable purchasing products/services
ages, modern retail in India picked up online. Alongside, they continue to
momentum only since one and half decades patronize offline (organized and
mainly due to favourable demographics like unorganized) retailers too. These customers
young working population, urbanisation, have high awareness, make selective
growing income, media penetration and choices, openly voice their opinion, and
increasing brand orientation. The expect consistency and 'customer
*Suja R. Nair, Strategic Marketing Consultant, Educe Micro Research, Bengaluru. She has a PhD from Jain University
Email: sujarnair@rediffmail.com, sujarnair269@gmail.com
**Harikrishna Maram, CEO, Imperial College, Bengaluru
Email: drharikrishnamaram@gmail.com
'Mobiles, Email, Web-chats,... Everywhere. How Do Organized Retailers Unleash Their Potential When Battling E-tailers?'
engagement' in all retail transactions. A big the unorganized/traditional and

challenge before the offline retailers and e- organized/modern retailers and e-tailers.
tailers is to fortify practices that earn them Till the 1980s, with limited purchasing
loyalty of such multichannel customers. In power and not much industrialization the
this paper we propose to examine whether retailing scenario was more unorganized,
all retailers can leverage their integrated operated by small/medium businessmen
efforts to cater to diverse customer needs who set up stores at popular locations
wherein, e-tailers use intelligence tools to (operating in 500 or less square feet area)
provide customer services and the offline and practised the 'counter service concept'.
retailers provide customers' accessibility and Subsequently, they modified operations by
brand profile so as to deliver a ' real buying adopting 'self-service format' and calling
experience'. Through discussions this paper themselves 'Supermarkets' (Sengupta,
will attempt to answers the following 2008).
questions:
1) How can organized retailers exploit The early steps in organized retailing can
market opportunities? be traced to mid 1980's when some of the
2) How organized retailers can overcome restrictions were lifted. However,
challenges in the retail market? practically the beginning of modern retail
3) Is it possible to leverage Indian retail can be associated with the opening of the
through an interface of organized and first 'Nilgiris' outlet at Bangalore in 1971.
unorganized retailers' and e-tailers? Subsequently, rapid transformation took
place with the entry of big retailers such as
The rest of the paper is structured as Shoppers's Stop, Pantaloon Retail, Viveks
follows: the following section gives an over- amongst others. Indian retail market has
view of the Indian retail scenario, followed been evolving and the current retailing
by the type of retailers operating in India, landscape characterised by its twin growth
and then there is a discussion on leveraging engines-the economic liberalization
integrated efforts among retailers, finally coupled with the demographic profiles is
conclusions are drawn and then limitations encouraging all types of retailers (global,
to the study and future research directions organized, unorganized and e-tailers) to be
suggested. a part of the growth-story.
Over-view of the Indian Retail Scenario Retail market growth estimates and
evolving consumer behaviour:
The early retailing practices in medieval
India was a controlled process mandating The following studies pinpoint the
sale of commodities and products at certain tremendous scope of the Indian retail
designated markets (Byramjee., 2005). market growth.
Common practices like “Weekly Haats',
'Melas' and 'Mandis' that have been in - Indian retail is ever expanding, with a 15
vogue since long continue retail operations percent yearly growth rate forecasted by
even today. Popular retailing formats 2015 (Nimbekar, Sood, Bachkaniwala,
include street carts, wet markets, pavement Gupta, Dutta, Rathi, Bangera 2015) and
shops, public distribution system, kiosks, also an expected annual growth of 25
weekly markets, etc. The current Indian percent worth US$ 175-200 billion by
retail sector comprises the co-existence of 2016 (Madan and Sharma, 2012).
- As per 'Indian Retail the next growth transactional and communication

story' (2014), the overall size of Indian capabilities of the organisation through a
retail sector is estimated to be about INR faster supply chain that lower costs for the
31 trillion in the period 2013-14 with a consumer. But long term growth calls for
compounded annual growth rate focussing on the 'consumption processes' of
(CAGR) of 15 percent over the past five consumers that goes beyond the purchase
years. Further, an estimation of CAGR process to include customers' services before
12-13 percent that would be worth about and after sales (Browne, Durrett and
INR 55trillion by the period 2018-19, is Wetherbe, 2004). This study had attempted
expected. to analyze consumer behaviour and
- According to ASSOCHAM/Business investigate consumer beliefs and
Standard (2014) study, the overall India preferences about shopping on-line and at
retail market is likely to reach Rs 47 lakh physical stores. Interestingly, it was found
crore by 2016-17 from the level of Rs 23 that customers were attracted to online
lakh crore in 2011-12, growing at CAGR stores because it provided information and
of 15 per cent. enabled purchasing of products and
∙ The Indian retail market is likely to services, whereas, shopping at physical
touch a whopping Rs 47 trillion (US$ stores provided convenience in terms of the
738.71 billion) by 2016-17, opines Yes touch-and-feel factor, comfort when
Bank-Assocham study (Retail industry in shopping in person and interacting with
India, 2014). sales persons (Browne, Durrett and
∙ There is a visible growth in the Indian Wetherbe, 2004). Western markets having
retail industry with an expectation that realized the scope of e-tailng, are vying the
India will achieve 7.4 percent GDP opportunities in emerging markets
during the period 2015-2016 (Datta, especially the BRIC (Brazil, Russia, India
Nimbekar & Sood, 2016). and China) countries. Further, physical
store attributes do induce positive buying
All the above studies reiterate the behaviour among consumers found Mohan,
expectation of the tremendous growth Sivakumaran and Sharma (2013).
potential of the Indian retail industry. The Moreover, the India retail market has
following section will throw light on the witnessed tremendous structural changes in
various categories of retailers who are the recent years mainly owing to the
aspiring to become a part of the growing dynamic entry of many international
retail industry here. retailers and brands. With the rapid growth
of internet retailing in India, based on
Types of retailers operating in India: shopping orientations, three customer
segments, namely: value singularity, quality
Technological advances and the advent of at any price, and reputation/recreation
e-age have brought about modifications in have been identified (Gehrt, Rajan,
the way businesses are carried out. For Shainesh, Czerwinski and O'Brien, 2012).
instance, the wifi, internet, social networks, In the past few years e-commerce has made
apps, etc., have helped to create new a big changeover especially among India's
channels for retailers who are attempting to increasingly young work force with high
take advantage of these developments and disposable income, and being socially active
reach out to customers in various ways. E- find convenience in using smart phones and
age technologies have enhanced being engaged in e-tailing (Dutta,
Nimbekar and Sood, 2016). On one hand, For instance, Lenskart, Pepperfly, Freecultr
while e-tailing is expanding the growth of and Firstcry opened physical stores to show
the retail market to reach out to even most case their products and service online
remote customers, a large number of customers. Leading e-tailer, Flipkart long
traditional brick-and-mortar retailers are back had opened physical stores from where
redoing their retailing processes in a bid to customers, according to their convenience
meet competition, on the other hand. could pick up products ordered online. E-
For, as pointed out by the following studies wallet firms Paytm, PayU India, MobiKwik
even unorganized retailers and/or e-tailers and Freecharge, offer services such as
stand to gain from the retail growth: mobile recharging, adding bill payment and
certain e-commerce products to customers.
 The study by Goswami and Mishra
(2009) found that if unorganized On the likely consumer behaviour trends
retailers upgraded their in-store facilities impacting the e-tailng market, Shashi
(cleanliness, quality of products, etc.) Matta (Prof. Marketing, Ohio State
they could easily earn long term University) felt crowd-shaping (meaning-
customer patronage. Consumers will join, link, connect, fund as
 The fact that 92 percent of the Indian well as give shape to ideas and
retail business comes from the products/services that reflect their
unorganized market speak volumes on preferences and is based on how they
the immense potential for growth and express it), C to C retailing, gamification,
consolidation of this sector (Indian hyper-connectivity, sustainability and social
Retail the next growth story, 2014). responsibility will have a major influence
 India is expected to have the second on the form and scope of future Internet
largest base of online users globally, retailing. While, “Retailers, branded
ahead of the USA although just behind companies and smaller sales outlets now
China (India Special Online Retail need to look for new ways to market their
Driving Realty, 2015). products among customers who are more
 The face of modern retail changed with discerning and technically more
the accelerated pace of e-tailing that knowledgeable – and that calls for a new
started from 2010 onwards especially approach, a new means of bringing together
with evolving consumer spending the best aspects of digital and traditional
patterns with increasing disposable shopping”, opined Carl Gish, Vice
income levels, and these are truly re- President, (global shipping and logistics),
defining the retail landscape in India eBay Marketplaces (Global e-tailing 2025,
(Dutta, Nimbekar and Sood, 2016). p.9).
With increased usage of advanced Tremendous changes have engulfed Indian

technology by retailers, for consumers retail since the past two decades and it is
shopping options are evolving and could believed that the modern retail sector will
even go beyond physical stores and e- primarily be driven through an integrated
tailing. Synergy between ecommerce firms approach adopted by e-tailers and modern
and other category of retailers will be brick-n-mortar format stores (Dutta,
beneficial to all retailers and customers. Nimbekar and Sood, 2016). Evolving
Some of the e-tailers have attempted this. Indians' shopping behaviour has ushered a
revolution in retail, giving rise to of products, discounts and payment on

assortments of formats to cater to the delivery facility to customers.
varying needs of customers. Unorganized Competition, technology improvements
retailers have modified in-store display and and evolving retailing sector mandates
ambience, offer credit, free home-delivery retailers leverage and integrate available
and try to maintain personal relationship technologies and concepts to enhance
with their customers. The organized relationships with customers to offer
retailers (supermarkets, hypermarkets, retail delightful experiences. A combination of
chain outlets, etc.) have outlets at bustling demand and supply factors (drivers) and
shopping centres, multi-storey malls and certain challenges are likely to provide the
huge complexes wherein shopping, impetus and affect the growth of the Indian
entertainment and food courts are available consumers and retail market (illustrated in
under the same roof. Online retailers are Figure 1).
going the extra mile by offering categories
Retailers to be a part of the industry growth risks by researching more on the products
could meet the challenges by revamping to be bought (Anderson and Zahaf, 2009).
their operations through an influx of
product variety, new working processes, A major driving force behind retail
building brands, re-doing supply chain revolution can be attributed to the
management and exploring new markets. dynamism and innovative flair for IT usage
by today's customers who are living in a
Building 'Customer Experience': highly digital cultural environment. Such
customers prefer a shopping experience
Social networks, smart phones, tablets, etc. that is convenient, efficient with an
have become an integral part of everyone's assurance of speedy delivery of ordered
life changing the way one shops, with products. Technology has facilitated
customers' looking out for an omni- marketers to develop consumer profiles by
channel(shopping through various evaluating their search and purchasing
mediums) experience and 24/7 shopping. patterns. However, the real challenge lies
Earlier, various channels (online, mobile, in want of proper infrastructure facilities to
offline, etc.) were operating in silos. Today ensure timely delivery (i. e. speed and
customers are socially aware, tech savvy and convenience) of products to all customers.
yet indecisive on their choice of 'preferred
retailer', products to be purchased online Further, consumers are displaying
vis-a-vis in-store, and so on (PWC Global's multichannel buying behaviour so as to get
Total retail report, 2014). This calls for the benefit of shopping in every place at all
retailers to exploit market opportunities, times. This implies that all retailers be they
work towards customisation (make online or offline, need to do away with the
intelligent usage of analytics to gauge old boundaries and look towards
consumers' preferences), offer transparency interlinking so as to give customers the best
and access to information on the of the online and offline retail world as will
availability of stock- all in order to provide be discussed in the following section.
a real 'customer experience'.
Towards leveraging integrated efforts
Growth of the online market place has among retailers
facilitated the emergence of a new channel
called consumer to consumer that permits The current retailing scenario is customer
consumers to do business with other driven with every retailer trying to pamper
consumers through a facilitator who their customers' with attractive
provides a market of exchange, for example, product/service offerings. These customers,
eBay, Yahoo auctions, etc. (Anderson and however, do not patronize any
Zahaf, 2009). This study found customers format/channel as they seek functional
avoid online shopping due to preference for benefits at unorganized outlets and
the services provided by brick and mortar emotional benefits from organized retail
retailers, those not using the new channel stores (Madan and Sharma, 2012) and
but buying online are comfortable with the typically shop at more than one channel
hassle free experience and those who are (Multichannel strategy, 2013). India Retail
using the new channel being price sensitive, Trends (2014) identified decreasing
are able to compensate for any perceived communication costs, rising Broadband PC
penetration and increased usage of credit Nevertheless, in the current information

card and debit card as the key enablers rich-age the biggest challenge before all
fortifying the growth potential of organized types of retailers is to deliver superior
retailers and e-tailers. The strengths and products/services through differentiated
challenges faced by different types of experiences that will suit the ever-changing
retailers are indicated in Table 1. consumer needs and preferences.
Indicators (a) Opportunities in Retail (b) Strengths of the Challenges of the

retailer’s retailer’s
Exponential growth Globally India is the fifth For ‘Modern retailer’: In e-tailing with consumer
and development largest preferred retail demand threatening to
opportunities destination, with ample retail -Can offer highly overtake the capacity of
growth & development taking personalized services infrastructure to deliver,
place across metros, major (including store staff’s e-tailers need to develop
cities as well as in tier 2 and help) to customers. the last mile delivery
tier 3 cities. system so as to be able to
-Allows customers to
With increasing investments offer fast and efficient
experience the ‘touch and
in rural infrastructure all services that meet
feel’ factor of product
retailers are looking forward customers’ expectations.
offerings.
to having access to high
growth potential in rural -Customers can make
markets. instant purchases, no Supply chain
waiting time for delivery. management is a big
India has only about 6 per
Rural markets challenge for e-tailers,
cent share in the private label
potential calling for logistics
market; growth of modern
and online retail is For ‘E-tailers’: division to make use of
augmenting the growth the most efficient and cost
potential of private label -Online customers can effective facilities and
brands in India. shop any where any time. systems that ensure
company stores and end
Private label strategy India’s price competitiveness -Customers can have customers receive
is attracting large global wider online selection shipments as per the plan.
retailers such as GAP, compared to that at
Walmart, Tesco, etc. who are physical stores.
slowly moving towards
-Customers can view For all types of retailers-
establishing their
other consumers’ reviews build up a profitable and
own wholly-owned/wholly-
when engaged in sustainable business
managed sourcing and buying
product/brand search. model that will help to
Sourcing base offices, i. e., making India
manage logistics, pricing
their sourcing base. -Price comparisons are and customer loyalty.
very convenient in online
shopping.
(Source: RETAIL IBEF, January 2016; and THINK INDIA THINK RETAIL 2016)
Table 1: Opportunities, strengths and challenges faced by retailers
The following studies highlight ways on and a validated scale of web site attribute
inducing positive retail consumption among importance among Indian online shoppers,
customers: Gehrt et al (2012) found the patterns of
India's pioneer two segments: quality at any
Multichannel Strategy (2013) found that price, and recreation/reputation, to be
multichannel buyers browse the web to similar in terms of internet usage and
gather information on products but prefer online shopping. These researchers
to purchase and negotiate returns through suggested e-tailers to rely on diffusion of
any of the channels/outlets. This study innovation to build up the value appeal.
opines the need for retailers to maintain the Mishra and Mathew (2013) found that
right balance between 'customer Indian online buyers perceived a very high
experience' and 'contact centre operations' level of risk/fear on the delivery of goods
by using a multichannel strategy that caters bought online. However, quality of
to all segments of the changing information, product range and after online
demographics across all geographies. Retail sales service were the most preferred
Leadership Summit (2014) suggests tapping website attributes influencing its usage.
emerging consumer segments through using Retail Operations Benchmarking and
business models that leverage technology, Excellence survey (2014) gave an
supply chain innovation and hybrid models interesting perspective on the impact of
adoption that would integrate their online increased access to mobile internet
and offline presence and also be able to suggesting that with increased access to 3G
attract customers from rural, smaller cities and 4G mobile internet services in the next
and towns. PwC Global's Total retail report five years, m-commerce can expect to gain
(2014) found that 'customer loyalty' in the about 20 percent share of the country's e-
true sense develops only when retailers are commerce market. Moreover, online
able to build an element of 'trust' that retailers are now catering to consumers in
repeatedly attracts customers to their store. more than 3000 postal areas, whereas, even
The study suggests multichannel and online the largest retail store chain (organized
retailers to leverage their efforts and create retailer) currently covers only around 100
business models that would help to expand locations in India (ibid, p.3). This is an
operations beyond metros, Tier-1, 2 & 3 indication of future growth opportunity
cities and convert footfalls/browsers to with an integrated multichannel approach.
actual consumers. Such moves will facilitate
customer's access to new channels and also The above discussion advocates leveraging
enhance retailer's flexibility in delivering the integrated efforts of unorganized
value to them. retailers, organized retailers and e-tailers, so
as to induce positive retail consumption
Studies (Mishra and Mathew, 2013; and through a multichannel approach and in
Gehrt, et al, 2012) found that despite the the process create a win-win situation for
low penetration levels of the internet users, all involved. Keeping in mind the
the online market has got tremendous discussions put forth in the paper a
growth potential. While examining the framework to this effect has been proposed
relationship between shopping orientations (illustrated in Figure 2).
As shown in Figure 2, the Indian retail each format and then make a choice. So,
market faces many challenges (inventory integrated efforts between retailers where
management, inefficient supply chain, etc.) each one shares with others valuable
that will impact all retailers and could insights on the target customers will
adversely affect their costs and profits. We facilitate cost reduction and efficiency in
propose to leverage the integrated efforts of supply chain management. Additionally,
all retailers towards addressing the such benefits can be passed on to buyers
challenges. Organized retailers, with the through discounted offers. Moreover, such
help of analytics etc. can identify target efforts could pave the way to explore retail
customers' needs, manufacture products, opportunities through suitable retail
develop interfaces with unorganized strategies in the future.
retailers (suitably located) and e-tailers (for E-commerce leader Amazon India had
tech savvy customers), provide them attempted this when as a pilot study they
(retailers) the necessary marketing support decided to launch an express delivery
to display and sell the products to customers platform in partnership with the kirana
through their formats/channels. Today's shops of Bengaluru to cater to the local
consumers do not patronize any single type needs. Of course, only time will tell the
of retailer. They prefer to weigh the outcome of Amazon India's attempt.
perceived advantages and disadvantages of Nevertheless, with more in stake for the
integrated efforts of online and offline In spite of the popularity of e-tailing,

retailers to meet customers' expectations of customers will continue to shop at physical
fast and efficient delivery of stores (both organized outlets and the
products/services, there are few challenging traditional brick and mortar stores) mainly
questions posed on which they need to because for customers shopping is a
reflect, and address: recreational activity. At physical stores they
get to touch and feel the products and
Do the retailers have the right personnel interacting with the sales personnel
with the requisite offline & online provides the necessary social appeal.
marketing skills? Have the retailers (offline Realising the importance of e-tailing many
as well as online) worked out a robust and of the traditional brick and mortar retailers
future-proof data strategy? Have these have attempted to go online either through
retailers been able to identify the 'right their websites or by tying up with popular e-
marketing mix' and communications tailers such as Snapdeal, Myntra, Jabong,
channels for a wider targeted audience? etc. The idea is to use and bring technology
to stores, provide multiple interacting
Conclusions points and support to the customer. Since
the customers have experienced the
Competitive business scenario along with convenience of e-tailing they will expect
growing consumerism requires all retailers more and an integrated collaboration
to intensify efforts at offering differentiated amongst all retailers in future can work
quality products and services to customers. towards a satisfying customer experience. In
The evolving Indian retail market is view of this a framework is proposed (Figure
currently characterised by twin growth 2), wherein all-organized and unorganized
engines-the economic liberalization retailers, as well as e-tailers could leverage
coupled with the demographic profiles an integrated business model so as to be
providing the right impetus for growth. able to deliver quality products/services
Organized retailers are trying to exploit the through a multichannel approach and
market with an influx of new work create 'delightful customer experiences'.
processes, technologies and modern This review paper through discussions has
concepts so as to provide 'delightful communicated on ways through which
customer experiences'. Unorganized organized retailers can exploit market
retailers are re-doing their in-store opportunities and overcome challenges in
ambience, offering credit, etc. to woo the retail market. Additionally, a
customers. E-tailers are offering different collaborated interface between organized,
categories of products, discounts and the unorganized retailers and e-tailers is felt
payment on delivery facility to customers. could help leverage positive consumption
Technology has impacted the way tech behaviour among customers and also pave
savvy consumers' in this information-age the way towards creating satisfying
interact with different retail channels using shopping experiences.
the multichannel approach and yet they are
not loyal to any retail channel. So, instead Limitation and Future research
of competing with each other the authors of
the current study feel that leveraging an One limitation of this paper is that
interface between all categories of retailers categorized as a General review paper,
would work for the good of all. inputs have been drawn from secondary
sources such as referred journals, reports References

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http://www.tcs.com/SiteCollectionDocu
QUOTES
“Its kind of bittersweet. The human spirit is not measured by

the size of the act, but by the size of the heart.”
Yakoy Smirnoff
“The human spirit is more powerful than any drug and

THAT is what needs to be nourished: with work, play, friendship, family.
THESE are the things that matter.”
Robin Williams
“Wilderness is not a luxury but a necessity of the human spirit.”
Edward Abbey
“No pessimist ever discovered the secret of the stars, or sailed to an

uncharted land, or opened a new doorway for the human spirit.”
Helen Keller
“We write because we believe the human spirit cannot be tamed and should
not be trained.”
Nikki Giovanni
RESEARCH
Dimensions Of Store Choice In Purchase Of Apparels
Dr. T. Frank Sunil Justus* & A. Albert Prabakaran**

ABSTRACT
The effort taken by a retailer in establishing an apparel outlet would pay dividends when the shop becomes
the choice of consumers for purchase of apparels. The closest the store is to the expectations of the
consumer in terms of knowledgeable and helpful sales people, good service, perceived quality of
merchandise, competitive price, comfortable environment the outlet has the probability of being perceived
as the store choice. This manuscript is an effort to develop a scale so that retailers can understand the
perception of consumers that decide store choice. The questionnaire comprised 49 Likert scales reflecting
the different dimensions of store choice in apparel purchase and a total of 200 respondents exiting from
selected apparel shops of Puducherry after apparel purchase were interviewed. The store choice was
studied based on six dimensions viz, merchandise, atmospherics, comfort, emotion, service and
promotion. The study in future can be extended to identify store choice factors of products other than
apparels and also in other geographical locations.
Retailers put in great effort and money to shop a preferred one. Fotheringham (1988)
develop the retail outlet. However, the found that consumer store choice results
retailer has to understand the major factors from a process, whereby the information on
that endure the outlet as the preferred various alternatives, is evaluated by the
choice of the consumer. The closest the consumer prior to the selection of one of
store is to the expectations of the consumer these alternatives.
in terms of knowledgeable and helpful sales
people, good service, perceived quality of Terblanche (1998) found the process of
merchandise, competitive price, selecting a retailer is very similar to the
comfortable environment the outlet has the buying procedure applied in choosing a
probability of being perceived as the store brand, product or service where the
choice. The consumers on their part choose consumer recognizes an unsatisfied need
to visit a lot many stores and evaluate on which requires visiting and patronizing a
the basis of above said parameters to retailer, then searching for relevant
develop the image of an outlet. The retailers information, evaluating the alternative
unless they understand the mechanism of retail stores and ultimately making a
store choice selection cannot make their decision. Retailers put in great effort and
* Dr. T. Frank Sunil Justus BE (Chem.), MBA. PhD, BOE, is Assistant Professor, Department of Business Administration,
Annamalai University. Email: tfsuniljustus@yahoo.co.in
* A Albert Prabakaran is an Assistant Professor, Department of Business Administration, Annamalai University.
Email: als_west@yahoo.co.in
money to develop the retail outlet. patronized is a result of both the relative
However unless customers patronize that importance of various motives and the
outlet all efforts put in will turn to a waste. shopper's assessment of alternative stores
The retailer is in a blind spot to understand with respect to the various factors used in
the perception of consumer that results in a making the selection. Chowdhary (1999)
apparel outlet choice decision. The retailer argued that customers build a perception of
does not know how the consumer actually the store based on their numerous visits to
makes the apparel store choice decision. the store, and that the final impression is a
The consumer on their part has their own combination of all of the aspects of the
evaluative criteria and compares them with store that have affected them.
their perception of store choice
characteristics. Hence a scale needed to be Objective
established which has to be useful to
retailers to find the apparel store choice To develop a comprehensive scale and
criteria. Once the store choice has been identify the dimensions of store choice in
made and when the shopping experience apparel purchase behavior
tends to be favorable, the consumer tends
to reinforce their learning behavior and the Method
matter of apparel store choice can become
habitual over a period of time. The questionnaire was developed using the
conceptual base of the dimensions of store
Review of literature choice and the basis of the focus group
outcomes. This scale was developed on a
Woodside and Trappey (1992) pointed out five point scale with 1 indicating strongly
that while shopping, a customer is likely to disagree 2 disagree, 3 neither agree nor
refer to a number of evaluative attributes disagree, 4 agree and 5 strongly agree. The
and select the store or brand automatically resultant questionnaire comprised 49 Likert
linked with these hot buttons. Leszczyc, scales reflecting the different dimensions of
Sinha and Timmermans (2000) identified store choice in apparel purchase. The data
store choice as dependent on the timing of was collected using personal interview
the shopping trip as consumers may go to method and a total of 200 respondents
the smaller local store for buying one or two exiting from selected apparel shops after
products and go to a larger store for regular apparel purchase were interviewed. The
shopping trips. Rhee and Bell (2002) Puducherry based apparel shops identified
believed that while shoppers often for the study included Pothys, Sharadhas,
patronize many stores, they typically have a Max, Muthu silk house, Rams silk, PSR and
primary affiliation to a main store that Megamart.
captures the majority of their purchases.
Hassan, Muhammad and Bakar (2010) Analysis and Interpretation
revealed that a shopper tends to shop at the
store that meet their perceived expectations Exploratory factor analysis was performed
on certain attributes perceived as important with varimax rotation on the total forty
to them. Bellenger, Robertson and nine questions.
Greenberg (1977) opined that the store
Table 1 Components of store choice in apparel purchase
Components of store choice that influence apparel purchase Dimens Loadin

ions gs
SC28 This shop has a wide collection of merchandise .896
SC22 I only find new merchandise inside the shop .871
SC23 I believe the products stocked here have no quality complaints .861
SC25 the merchandize as right priced .858
SC24 the shop stocks the latest trends in fashion .852
SC26 I find my most preferred brands only in this shop Mercha .851
ndise
SC30 The shop has a proper exchange policy in case of any fault in the
.833
apparel
SC31 The shop provides test apparels so that the apparel I buy would not have
.832
been tried by someone else
SC29 I find apparels in different fabrics to widen my selection .819
SC27 I find rare merchandise available in this shop .801
SC13 stores that have attractive wall displays .903
SC6 stores that have well pronounced window displays .895
SC44 Lift / escalators make life easy inside the shop .893
SC14 stores that has proper humidification arrangements Atmos
.883
pherics
SC12 store that have comfortable lighting .874
SC11 attracted products’ signboards and posters inside the store .861
SC40 I find the shop neat .843
SC10 comfortable with the soft music played inside the shop .841
SC16 attracted by the way mannequins are presented in the store .834
SC9 stores that are well scented to suit the mood .701
SC1 stores that has parking facilities .858
SC4 I prefer stores where I can get accessories .855
SC2 I prefer to shop at stores near to my locality .848
SC3 stores that are easily accessible by private / public means of transport .843
SC46 Shop does not charge me for usage of credit / debit cards Comfort
.834
SC5 stores that are open for extended timings during festive seasons .831
SC8 stores that have a spacious store front .827
SC7 stores have adequate seating facility .806
SC45 Shop has multiple payment options in each floor that helps me save time .796
SC36 I shop here because as a child I was taken here for shopping .910
SC32 I believe I am shopping at store with matching clientele .876
SC34 I consider it a prestige to shop from here .870
SC35 I buy most of my clothes from this store Emotio .867
SC37 I really identify with people who buy from this store n .862
SC33 My self-image matches with the store image .852
SC41 I have a feeling of personalized care when I am in the shop .845
SC38 I prefer the shop as it is patronized by my family members .842
SC43 The personnel understand my choice of apparel and displays it .903
SC49 stores with informative salesmen .902
SC39 shop with courteous/helpful salesmen Person .895
SC47 alteration options for the product I buy nel and .866
service
SC48 shop where the salesmen can get me the right size and color that suites
.838
my style
SC42 The sales man does not show negative feelings even in case I reject .800
SC19 I prefer to shop at stores because of my favorite celebrity endorsement .897
SC21 I strongly believe I save a lot of money because of promotions .885
SC16 I get price offs in case of bits or the last piece of bundles Promot .883
SC20 I get vouchers and coupons so that I redeem in my next purchase ion .877
SC18 The sales promotion items are well displayed .842
SC17 I prefer the shop as I get seasonal discounts .810
Table 2 Eigen Value and Variance of dimensions of store choice in apparel purchase behavior
Summary statistics F1 F2 F3 F4 F5 F6
Eigen values 14.44 11.81 7.06 3.54 2.57 1.87
% of variance explained 29.47 24.12 14.39 7.23 5.25 3.81
Cum % of variance explained 29.47 53.59 67.99 75.22 80.47 84.28
The first dimension identified as identified merchandise and clientele as the

merchandise comprised statements such as most significant image dimensions that
wide collection, new products, quality influence respondents. Arnold, Handerman
products, rightly priced, apparels of recent and Tigert (1996) established that a store
fashion, preferred brands, exchange policy, identified as being the best on the
test apparels and rare merchandise. The performance attributes such as locational
depth and width of merchandise is a convenience, price and assortment of
decisive factor that aid store choice. Visser, merchandise was more likely to be
du Preez and Van Noordwyk (2006) patronized by customers. The merchandise
dimension accounted for 29.47 percent of clientele, sopping there being prestigious,
variance. shopping there for most of the apparels,
identifying with people who buy from the
The next dimension sorted was shop, matching with self image, feeling of a
atmospherics comprising statements such as personalized care and the shop being the
attractive wall displays, window display, choice of family members. The store choice
escalator provision, humidification process is enjoyable only when the
arrangements, comfortable lightings, customers feel a sense of attachment to the
signboards, cleanliness, foreground music, shop. Sinha and Banerjee (2004) found
attractive mannequins and scented aroma. shoppers do not hesitate in shopping from
Atmospherics add an aura of charm and the store which is being situated at a large
comfort that enhance the image of the store distance if the shop has been patronized by
as they go through the product selection them for a long period of time. Oxenfeldt
process and strengthen the store choice (1974) clarified that the customer reacts to
behavior. Pine and Gilmore (1999) the store's characteristics, as he views them,
indicated that creating a unique customer in an emotional way may feel toward one
experience can provide financial value for store as a warm, trustworthy, helpful friend.
the company. Engel, Blackwell and Miniard
(1995) studied the environmental The next dimension identified as personnel
dimensions such as air quality, lighting, and service attributes comprises statements
layout, carpeting and aisle width and such as understanding the choice of
placement are physical store attributes used apparel, informative salesmen, courteous
to project store image and influence store sales men, providing necessary alterations,
choice. search the right fit and color and refrain
from negative feelings in case of not buying.
The next dimension that emerged was The role of sales men is highly complex as
comfort attributes that comprise he remains the sole point of contact in the
components such as parking facilities, apparel purchase process and each customer
availability of apparel accessories, shop has a distinct expectation from him. Boone
located nearer to residence locality, easily and Kurtz (1992) claimed that salespersons
accessible, no charges for card usage, are an important promotion tool in
extensive timings, spacious store front, communicating store image and persuading
adequate seating facility and multiple consumers to buy and attract the customers
payment points. Nevin and Houston (1980) through their appearance and behavior.
insisted that provision of infrastructures like Hawes, Rao & Baker (1993) indicated that
resting seats, safe escalators, or the security consumers are increasingly looking towards
cameras in the store is an essential element salespersons for trustworthy information by
to increase the comfort of shopping. This their knowledge and solving with
dimension accounted for 14.39 percent of customer's enquiries.
variance.
The final dimension was classified as
The fourth dimension categorized as promotion attributes and involved
emotional attributes embraced components statements such as getting influenced by
such as the store being the choice since celebrity endorsement, perception of money
childhood, shopping with matching savings, price off, vouchers, display of
promotional items and seasonal discounts. offerings of the store, prime them with
Grewal, Monroe and Krishnan (1998) knowledge of the availability of
found special promotions and discounts to merchandise that could cater to their future
increase customer interest towards the super needs and encourage their repeat visits.
market and the perception of financial Bagozzi & Youjae, (1998) Promotions help
sacrifice by the business has been to create public awareness of the actions of
determined to affect the patronage behavior the stores and augment the probability of
of the shopper. Logue (1986) divulged that patronage.
Promotions exposes consumers to the
FIG 1 Confirmatory Factor Analysis with the six dimensions of store choice in
apparel purchase Model fit
Model fit
The above measurement showed an agreeable data fit. The values of the fit indices are shown
in the table below and the values show the model as acceptable.
Table 3 Model fit indices for the six dimensions of store choice in apparel purchase
Index CMIN DF CMIN/DF GFI AGFI NFI RFI IFI CFI RMSEA
of fit
Value 4101.520 1112 3.688 .647 0.611 .856 0.847 .891 .890 .084
From above table Bollen's (Bollen, 1989) The internal consistency for each of the
incremental fit index (IFI) values close to 1 dimension was examined using Cronbach's
indicate a very good fit. Bollen's (Bollen, alpha. Reliability is the degree to which a
1986) relative fit index (RFI) values close test consistently measures whatever it
to 1 indicate a very good fit. The measures. Cronbach's alpha establishes the
GFI(goodness of fit index) identified by internal consistency of items in a survey
Joreskog and Sorbom (1984)value is less instrument to estimate its reliability.
than 1 where a value of one indicates a
perfect fit.
Table 4 - Reliability Analysis

Dimensions Cronbach's Alpha
Maintenance dimension 0.989
Handling Dimension 0.985
Time Dimension 0.982
Hassle Dimension 0.979
Communication Dimension 0.978
Finance Dimension 0.975
Atmospherics dimension 0.969
Total 0.876
The reliability of the six dimensions as service and promotion which together
established through Cronbach's alpha contribute to be the deciding factors of
calculation were considered adequate as store choice. The paper brings out the
they are above 0.70. dimensions that serve as facilitators of store
choice. The above scale would be helpful to
The length and breadth of merchandise retailers to find out the factors that make
happens to be the mainstay in the store their outlet the store of choice. This study
choice decision of consumers. The pull of has been based on apparel stores of
merchandise is augmented by other factors Puducherry and hence can be extended to
such as atmospherics, comfort, emotion, different geographical regions. This study
can in future be extended to identify store components that measure the six
choice factors of products other than dimensions of store choice is given in
apparels. The list of the final set of annexure 1
Annexure 1Dimensions of store choice in apparel purchase

Components of store choice that influence apparel purchase Mean SD Dimension Mean SD
This shop has a wide collection of merchandise
3.55 1.41
I only find new merchandise inside the shop
3.57 1.47
I believe the products stocked here have no quality complaints
3.46 1.38
the merchandize as right priced
3.75 1.46
the shop stocks the latest trends in fashion
3.67 1.50
I find my most preferred brands only in this shop Merchandise 3.52 1.32
3.25 1.33
The shop has a proper exchange policy in case of any fault in the
apparel 3.42 1.37
The shop provides test apparels so that the apparel I buy would not
have been tried by someone else 3.43 1.57
I find apparels in different fabrics to widen my selection
3.68 1.51
I find rare merchandise available in this shop
3.44 1.37
stores that have attractive wall displays
3.82 1.32
stores that have well pronounced window displays
3.85 1.32
Lift / escalators make life easy inside the shop
3.94 1.32
stores that has proper humidification arrangements
3.91 1.36
store that have comfortable lighting
3.86 1.31
Atmospherics 3.85 1.15
attracted products’ signboards and posters inside the store
3.65 1.42
I find the shop neat
3.77 1.23
comfortable with the mild music played inside the shop
3.83 1.25
attracted by the way mannequins are presented in the store
3.80 1.21
stores that are well scented to suit the mood
4.04 1.09
stores that has parking facilities
3.43 1.54
I prefer stores where I can get accessories
3.48 1.52
I prefer to shop at stores near to my locality
3.38 1.54
stores that are easily accessible by private / public means of transport
3.43 1.53
Shop does not charge me for usage of credit / debit cards
3.58 1.54 Comfort 3.47 1.39
stores that are open for extended timings during festive seasons
3.40 1.39
stores that have a spacious store front
3.48 1.46
stores have adequate seating facility
3.51 1.41
Shop has multiple payment options in each floor that helps me save
time 3.50 1.48
I shop here because as a child I was taken here for shopping
4.01 1.19
I believe I am shopping at store with matching clientele
3.97 3
I consider it a prestige to shop from here Emotion
3.65 1.30 3.92 1.08
I buy most of my clothes from this store
3.88 1.10
I really identify with people who buy from this store
3.91 1.24
My self-image matches with the store image

3.98 1.13
I have a feeling of personalized care when I am in the shop
3.98 1.19
I prefer the shop as it is patronized by my family members
3.98 1.09
The personnel understand my choice of apparel and displays it 3.37 1.39
stores with informative salesmen

3.44 1.35
shop with courteous/helpful salesmen
3.44 1.51 Personnel &
Service 3.41 1.28
alteration options for the product I buy
3.40 1.37
shop where the salesmen can get me the right size and color that suites
my style 3.41 1.42
The sales man does not show negative feelings even in case I reject
3.38 1.35
I prefer to shop at stores because of my favorite celebrity endorsement
3.49 1.41
I strongly believe I save a lot of money because of promotions
3.67 1.31
I get price offs in case of bits or the last piece of bundles
3.37 1.38
Promotion 3.55 1.24
I get vouchers and coupons so that I redeem in my next purchase
3.80 1.36
The sales promotion items are well displayed
3.49 1.32
I prefer the shop as I get seasonal discounts
3.49 1.43
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QUOTES
“Freedom is the open window through which pours the sunlight of the human spirit
and human dignity”
Herbert Hoower
RESEARCH
Influence Of Culture On Gender In India
Uma C Swadimath* & Prasanna B Joshi**

ABSTRACT
Culture is a set of norms, values, traditions, customs, religious views passed from one generation to
another. Culture is derived from the Latin word,'cultura','colere' which means "to cultivate”. Gender
includes the behavioural patterns amongst men and women. In India, gender becomes important at the
time of birth itself. It's been the norm of an Indian family that when a son is born it's the time to rejoice
unlike when a daughter is born. Indian culture has a greater respect for women but at the same time she is
treated vulnerable. Feminism and culture forms to be the part of the gender approach which have resulted
changes in the Indian families and societies. Gender equality is enforced which seeks equal rights and
entitlements to both women and men, with an equal voice in social, economic and political life. The paper
studies the changes that have taken place to reduce gender discrimination.
KEYWORDS: Culture, Gender, Indian Society, Gender Equality
Introduction Today the world in general and democratic

countries particularly India emphasizes the
Culture, religion and traditions are the vital rule of equality in all walks of life both
factors that determine and influence people constitutionally and as a principle of social
in their families, societies, nations and the and economic justice. Historically speaking,
world. It's a fact that culture is passed from it was after the World War II when the
one generation to other and world history whole world was shaken and underwent
provides evidences where the role of into trauma, all the countries came together
religion and culture are predominant. to establish a basic standard of human rights
Culture depicts traditions, norms, values, known as the Universal Declaration of
manners and determine the behaviour of Human Rights was adopted in 1948. This
individuals which in turns reflects their declaration provided a vision for a new
personality. It is very apparent that in the global order that guaranteed all individuals
present day there is gender discrimination basic human rights and prohibited
which has prevailed since decades. Culture discrimination of any kind on the basis of
and religion go hand in hand that colour, caste, religion, race and gender.
determine the behaviour of gender. Though a patriarchal society, the doctrine
*Uma C Swadimath, Associate Professor, Centre for Management Studies, Presidency College, Kempapura,
Bengaluru. Email: uma.csm@gmail.com
**Prasanna B Joshi, Assistant Professor & Head, Department of Economics, Rani Parvati Devi College of Arts
& Commerce, Tilakwadi, Belgavi. Email: prasanna.economics@gmail.com
of human rights states that there cannot be  Francas Raday (2003), observed the
any kind of discrimination between men relative factors between culture, religion
and women. She has to be treated with and gender in view of international and
respect and enjoy all the basic rights just constitutional human rights laws. The
like men. It was in the year 1979 that the article relates the concept of human
Convention for elimination of all forms of rights doctrine as a shift from a religious
discrimination against women (CEDAW) to secular state in the eighteenth
emphasized women's right to equality in all century of Europe. He examines the
walks of life as a global norm. various laws in different countries that
have been enforced to provide for
In some countries of the world women do gender equality.
not enjoy the rightful act of freedom or
liberty, history cites examples like in  Lupin Rahman & Vijayendra Rao
Afghanistan where the women were under (2004), This article speaks about
oppressive and tyranny rule and face very cultural bias in India, where North India
hardships in their lives and in some favoured exogamous marriage whereas
countries women were not granted their south India favoured endogamous
basic political right, the right to vote. marriage. They consider 2 states namely
Gender equality has become one of the Uttar Pradesh and Karnataka for their
major issues in the present global scenario. study and refer to Tim Dyson and Mick
Therefore, this paper is an attempt to Moore in 1983 where he referred to
understand the importance of culture, it cultural bias between north and south
tries to understand the concept of gender in India.
the Indian society and the various laws and
regulations enforced to treat women on par  Meena Razvi & Gene L. Roth (2004)
with men in all spheres of life. Post have focused on the impact of gender
independence, social change driven by ideas discrimination in India on the socio
of development within the current phase of economic development of women. They
globalization, in which state and emphasize on the efforts by the
international economic and political Government, non-governmental
interests often intersect to erode local organisations in bringing about gender
autonomy and a variety of other gender equality in the country and the
perspectives. enforcement of laws to protect women
against violence and harassment like the
1. REVIEW OF LITERATURE dowry prohibition act, 1961, Hindu
Women's Right to Property Act, 1937,
 Bandana Purkayastha, Mangala Hindu Marrige Act, 1955 and Equal
Subramaniam, Manisha Desai & Sunita Remuneration Act, 1976 that also help
Bose (2003) explained the similarities in improving the status of women in
and differences of gender literature of the India.
US scholars and the rest of the world.
They have a partial review of gender  Lenore Blum, Carol Frieze & Orit
scholarship in India, women's movement Hazzan M. Bernardine Dias(2006),
and violence against her. speak about gender perspective in the
field of computer technology by referring 3. OBJECTIVES OF THE STUDY

to various case studies of different
geographical and cultural regions. a) To understand the importance of culture
b) To understand the concept of gender in
 Gender violence in India-A Prajnya the Indian society
Report(2010),This report gives an c) To study the measures and laws that
elaborate explanation and discusses prevent gender discrimination in the
issues of gender violence which includes Indian society
gender violence statistics across the
years, gender violence research in India, 3a) Importance Of Culture
focus on gender violence in public
spaces,. street sexual harassment, Culture is derived from the Latin word
workplace sexual harassment, ICTS and 'cultura' from colere which means 'to
gender violence. This reports also tells cultivate'. Culture can be referred to a set
about the existing laws pertaining to up of beliefs, principles, values, goals, an
various acts of gender violence. act of social learning that determines
behaviour and practices that define an
 Maitrayee Chaudhuri (2012), explores institution, organization or groups in the
how the language of tradition and society. Geert Hofstede says culture is the
modernity has been dominant in India. software of the mind- the social
As India is often seen as a land of programming that runs the way we think,
contrasts where tradition and modernity act and perceive ourselves and others. It is
coexist—where Indian women are often a learned behaviour and hence can be
showcased as emblematic of this changed. According to Kluckhohn culture
coexistence. She relates to centrality of is ways of life to people. Culture also
gender in the nation's political and means a set of learned core values, beliefs,
cultural development. standards, knowledge, morals, laws and
behaviour shared by individuals and
 Reshma Elizabeth Thomas (2013), societies that determine how an individual
observed that gender discrimination is acts, feels and view oneself and others.
prevalent health and empowerment of
men and women. She discusses that Culture, religion, customs, norms, values
gender differences include infant and and traditions are the foundations on
mortality of girl child and women have which a society is built in any country.
less access to education, employment, Every country conforms to its own customs,
power and freedom of movement. culture and religion which significantly
build societies of their own. In some
2. RESEARCH METHODOLOGY countries, their political system is based on
their cultural and religious beliefs. Customs
The paper is conceptual study based on refer to the following of traditional cultural
secondary sources of information. Chi practices in a society. According to Adam
Square statistical tool is used to analyze the Kuper, culture is simply a way of talking
secondary data. about collective identities. According to
Edward B Talyor, culture can be of two
forms namely social culture and ideological
culture. Social culture relates to people's two aspects, where culture is passed from
forms of social organizations, how people one generation to another and it is a shared
interact and organize themselves in groups phenomenon. It is also transmitted by
and ideological culture relates to what symbols. Culture essentially consists of
people think, value, believe and hold as traditions, ideas attached to the values and
ideals. UNESCO's Universal Declaration conditioning elements for future action.
on Cultural Diversity adopted in November
2001. It defines culture as 'the set of 3 (b) The Concept Of Gender In The
distinctive spiritual, material, intellectual Indian Society
and emotional features of a society or social
group, and that encompasses, in addition to Gender is hierarchical as it gives more
art and literature, life styles, ways of living power to men than to women in the
together, value systems, traditions and society. Gender describes powers to men
beliefs. and women. The concept of gender in
traditional culture and religion is the
There exists diversity of cultures based on domination of men on women, exclusion of
ethnic or religious differences. A new women from participating in public affairs
concept of culture has evolved, which is and she is subject to patriarchal domination
global culture stressing on gender equality within the family. Work that women
and human rights. Religion and culture are perform revolves around the physical,
inter related. The societies by and large are emotional and social well being of other
guided by their religious tenets and people particularly their families, husbands
customs. Culture allows for change, it is and children. Work that men perform is
dynamic, shaping and being shaped by related to their role as bread earners for
those who occupy it. A dominant culture their families. Women are considered as the
influences a community and people follow guardians and transmitters of culture,
their cultural attributes and embrace its passing on societal values to their children.
values. To an extent, culture and gender Women are often projected as cultural
relations are rooted in religious aspects as emblems of the Indian nation and society.
well. This is so because, religion is the basis Changes in her attire, mannerisms and
for many of the cultural values that behaviour are hastily condemned as threats
describes what women are and how they to culture and tradition. Thus practices like
should behave, what is permissible and not sati , dowry, child marriage and prohibition
permissible for women to do. The right to of widow remarriage were the practices of
enjoy one's culture is concerned with the culture earlier but now these are prohibited
protection of ethnic, religious and linguistic as per the laws.
minorties. Culture has material effects,
influencing power relations within society, Practices such as female infanticide, dowry
women's and men's access to economic system, preferential upbringing and special
resources, and decision making power in treatment to the sons, no education and
the family. It is culture that includes financial independence, no freedom of
knowledge, beliefs, art, ethical values, laws, expression of any kind, women being
customs, habits that are acquired by people treated as slaves, humiliation and
in the society. Acquisition of culture or harassment in the most barbaric inhuman
acquaintance to culture can be attributed to acts faced by women, various crimes against
her, domestic violence and restricting the but on the other she is brutally treated and
role of women only to housewives and tortured.
mothers, all of these brought criticism
which made the nations emphasize seriously Gender inequality hampers the capacity of
on protection of women's rights and gender women towards earning income and her
equality. There is a relationship between very survival, particularly those women
gender, caste, class, and income because the covered in purdah are forbidden to work
majority of poor women come from lower outside their houses. Lack of education in
castes. A large dowry is a status symbol. In women has lead to poor literacy leading to
general, violence is explained in terms of a gender gap in literacy rate and no higher
patriarchal Indian society as a method of education. All these social practices in the
controlling women who have a subordinate name of culture and religion act as
status. hindrances to women's equality and her
dignity. According to the United Nations
Domestic violence and abuse, forced Development Programme's Human
marriage, dowry killing and acid attacks are Development Report 2013, India ranks 132
acts of violence against women. The out of 187 countries on the gender
definition of violence against women in the inequality index. In many parts of India,
United Nations Declaration on violence women are viewed as an economic liability
against women in the article 1 is described despite her contribution in several ways to
as gender based violence that results in or is our society and economy.
likely to result in physical, sexual or
psychological harm or suffering to women. It was only in the twentieth century, due to
Women are not only facing all these changes in the outlook and thinking of
atrocities and bearing the pain and trauma people that gender equality cropped up.
she was not even entitled to inherit family The doctrine of human rights relate to
property, take decisions on her, all of this freedom of religion, beliefs, right to enjoy
restricting her to participate in public life by one's culture and right to gender equality.
treating her as vulnerable and slaves. The article 2 (f) of states to abolish
Convention for elimination of all forms of
It is a fact that there is an inequality in the discrimination against women (CEDAW)
enjoyment of rights by women through out states to abolish all those customs and
the world and is deeply embedded in practices that result in the discrimination
traditional norms, religious attitudes and against womenas the crime graph against
cultural practices. In Indian society social women is increasing at an alarming rate.
practices such as sati system, dowry as part The impact of globalization has allowed
of a tradition at the time of marriage, women to become a larger part of the
honour killings, deva dasi system, women workforce, with opportunities for higher
were forbidden to go to schools, educate pay raising their self confidence and
themselves, practice of polygamy, domestic independence. Globalization has provided
harassment led to the suppression of her a power to uproot the traditional views
individuality. Ironically speaking, under about women that have kept women
Hindu religion in India a woman is economically poor and socially exploited.
respected, giving her place equal to Godess The growth of the computer and
technology sector has provided middle class 4. RESEARCH QUESTION

educated women with better wages, flexible
timings, and the capacity to negotiate their Is there any significant difference among
role and status within the household and working age population of men and women
society. As Cohen, Stephen (2001:36) says, with respect to the level of their
“India is an ancient state but a modern employment and education?
civilisation”. What I find interesting is the
fact that this ancient state has “survived” Hypotheses Of The Study
during the process of globalisation. — H0-There is no significant difference
Especially India's diverse and deeply rooted among working age population of men
culture which has always been and still is and women with respect to the level of
influenced by a lot of different religions, their employment and education
languages and traditions. Additionally, in — H1- There is significant difference
connection with globalisation, the western among working age population of men
values seem to have gained acceptance in and women with respect to the level of
India. their employment and education
Table 1: Working age population in the years 2000, 2005 & 2012 measured in millions.
Working age population (In Millions)
Year 2000 Female Male Total

Employment 123 274 397
Education 161 32 193
Not in both 20 20 40
Total 304 326 630
Total 340 374 714
Total 403 427 830
Source: Data is on working-age population (15-64 years). Estimates are based on NSSO
Table 2 : showing expected frequencies
Working age population

Year 2000 male female Total O E (O-E) (O-E)2 (O-E)2/E
Employment 191.57 205.43 397 123 191.57 -68.57 4701.84 24.54
Education 93.13 99.87 193 161 93.13 67.87 4606.34 49.46
Not in both 19.30 20.70 40 20 19.3 0.7 0.49 0.03
Total 304 326 630 274 205.43 68.57 4701.84 22.89
32 99.87 -67.87 4606.34 46.12
20 20.7 -0.7 0.49 0.02
143.07
Working age population
Year 2005 male female Total
Employment 221.90 244.10 466 O E (O-E) (O-E)2 (O-E)2/E
Education 95.71 105.29 201 148 221.9 -73.9 5461.21 24.61
Not in both 22.38 24.62 47 165 95.71 69.29 4801.10 50.16
Total 340 374 714 27 22.38 4.62 21.34 0.95
318 244.1 73.9 5461.21 22.37
36 105.29 -69.29 4801.10 45.60
20 24.62 -4.62 21.34 0.87
144.57
Working age population O E (O-E) (O-E)2 (O-E)2/E

Year 2012 male female Total 129 229.18 -100.18 10036.03 43.79
Employment 229.18 242.82 472 229 140.81 88.19 7777.48 55.23
Education 140.81 149.19 290 45 33.02 11.98 143.52 4.35
Not in both 33.02 34.98 68 343 242.82 100.18 10036.03 41.33
Total 403 427 830 61 149.19 -88.19 7777.48 52.13
23 34.98 -11.98 143.52 4.10
200.94
The table value at 5% level of significance with 2 degrees of freedom is 5.99. Since the calculated values are
more than table value H0 is rejected and H1 is accepted.
4 c) MEASURES AND LAWS THAT accepted in Indian households that adds to

PREVENT GENDER earning dual income supporting their
DISCRIMINATION IN THE INDIAN respective families .Provision of education
SOCIETY to a girl child and women is viewed as the
primary development objectives by all the
Women must gain recognition and state Governments in India. Although
inclusion at all levels. First and foremost, women are the main earners in 35% of
provision of education should be extended Indian families (Vecchio & Roy, 1998)
to women as education would not turn the society still prefers to view them as
women away from their traditional familial housewives.
roles and improve the efficiency of wives
and mothers and strengthen the hold of In India, Hinduism being a major religion,
traditional values on society, as it is the laws confined to women are determined
believed that women are better carriers of by the religion of the parties involved and
these values. In India the constitutional law are dealt in the civil court. Some of the
under article 14 enforces the right to inequalities in the Hindu family laws were
equality and article 15 in the constitution removed by passing the Hindu marriage act
states that there cannot be any kind of in 1955.The Government set up the
discrimination on the basis of caste, colour, National Commission for Women in
religion, race and gender and article 16 January 1992, with a specific mandate to
states right of equality in public study and monitor all matters relating to
employment. Even Mahatma Gandhi had the constitutional and legal safeguards
encouraged women to participate in social provided for women, review the existing
and political situations during the freedom legislation to suggest amendments wherever
struggle. Socio- economic differences have necessary. A survey published in November
increased female poverty. It is the very duty 2010 by the Centre for Transforming India
and responsibility of the Government to found that more than 80 percent of the
execute and implement gender equality female employees of information
laws and regulations. technology, business process outsourcing
and knowledge process outsourcing
A girl child was deprived of education and (BPO/KPO) companies had been subject to
health care facilities whereas education for some form of harassment at their
boys or sons is considered as an attractive workplaces. In the year 1992, 73rd and 74th
investment. Though the Government has amendments were made in the Indian
introduced and implemented various laws, constitution decentralizing power to rural
regulations to bring an awareness about the and urban local bodies relating to the
benefits of educating a girl child, capability establishment of panchayat raj institutions
of women to earn, there are differences at 3 levels, this amendment also allowed for
between urban and rural women. As urban 33% representation for women to enable
women are more educated, have access to them to participate in public affairs and
legal protection unlike the rural women. local governance.
Earlier, there was very limited scope for
empowering women but due to changes in The department of women and child
lifestyles, ways of thinking, increased development in the Ministry of Human
urbanization, working women are being Resource Development has prepared a
'National Policy for the Empowerment of governmental organizations (NGOs),

Women' in the year 2001. The goal of this Government, self help groups (SHGs)
policy is to bring about the advancement, should help in the social and economic
development and empowerment of women. advancement of women
India passed an Information Technology
Act in 2000 and an amended version, now 7.LIMITATIONS OF THE STUDY
known as the Information Technology
(Amendment) Act or ITAA in 2008 to The study includes only education and
prevent cyber crime against women. In the employment factors and fails to include
2010-11 Vision Statement, the Ministry of health, insurance and decision making
Women and Child Development (MWCD) factors which help in improving the status
focused on a violence free environment for of women in the society.
women to lead lives of dignity. In 2012, the
President of India launched the National 8.SCOPE OF FURTHER RESEARCH
Mission for the Empowerment of Women
(NMEW) which has a five year mandate to Ascertain the extent of Mahatma Gandhi
achieve women-centric programmes across National Rural Employment Guarantee Act
Ministries. (MNREGA) in providing employment
opportunities and participation of women
6. FINDINGS OF THE STUDY labour force.
Though the law prohibiting dowry passed in 9. CONCUSIONS OF THE STUDY

1961, there are some parts in India who
torture and burn women for dowry, which is Gender inequality is the biggest setback of
an act of cruelty. In remote areas, there are India. A well educated population is not
superstitious people who practice girl child only necessary for economic growth but also
sacrifice, even in this 21st century. There a precondition for inclusive growth.
are growing demands for change from Education leads to opportunities for
women in developing countries. The last individual development, productive
decade has seen an explosion of women's employment and participation in various
organisations and gender equality areas of social life. A basic principle of
advocates. These women are articulating development co-operation strategies on
clear demands for change. The efforts of gender equality is to broaden decision-
women's organsiations and Governmental making processes so that women as well as
laws no doubt, has resulted in improving men realize what is important and what
the status of women in India amongst the should have priority. Provision of training
educated families but at the same time, in areas of education, employment,
there is an increase in the divorce rate. openness, change of outlook, enhancement
Today, exclusively women's organizations of skills and knowledge, effective laws and
are set up to help women in all respects and regulations will definitely boost the morale
also own a sense of responsibility towards and self-esteem of women and contribute to
creating an atmosphere that is more building a better society and a better
powerful, fair and accessible to treat women nation.
equally and with dignity. Family, non-
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 International Convenant on Civil &
RESEARCH
Geriatric Care In India: Challenges And Opportunities
Aniruddh Bhaidkar*
ABSTRACT
With the demographic transition and the increasing reach of advanced medical care the elderly population
is expected to rise to 12% of the total population by 2015. The gradual jump in the rise of elderly
population poses a significant challenge to the underprepared healthcare system which faces a rapid shift
from communicable to non-communicable diseases along with severe social and financial challenges to
the government and society. Besides social factors, rising employment opportunities for women, fewer
children, rapid urbanization and the breakdown of nuclear families warrant a serious focus of the
government and the society on the problems of this vulnerable group and promote healthy aging.
Introduction 12.6% in 2025.” By the virtue of that

definition, India qualifies as an aging
India is currently undergoing a rapid country. Mahajan et al (2013).
demographic transition where there has
been a sharp increase in the elderly Traditionally the thrust areas of the
population over the last few decades. As per government have been population control,
the 1991 census, the population of the maternal and child health, control of
elderly in India was 57 million as compared communicable diseases and sanitation.
with 20 million in 1951and it is expected to However the current statistics for the
grow to about 234 million by 2050. Nath et elderly in India point towards an impending
al (2008). This demographic transition is medical, social and economic crisis if timely
due to decreased fertility and mortality rates measures are not taken towards this by
due to dissemination of better healthcare policy makers. It is critical to study in detail
services across the country. It is observed the challenges of the rising elderly
that the reduction in mortality has been population and collectively work upon
higher than fertility. Tripathi(2014). strategies to bring about improvement in
their quality of life. Nath et al (2008).
A paper published for the WHO titled
'Ageing in India', states that “The UN Geriatric Care in India:
defines a country as 'ageing' where the
proportion of people over 60 reaches 7 per The concept of geriatric care in India is
cent. By 2000 India will have exceeded that absolutely rudimentary at best.
proportion (7.7%) and is expected to reach A World Health Organization report
* Dr. Aniruddh Bhaidkar is a Masters in Healthcare Management from the Manchester Business School, University of
Manchester, UK. Email: aniruddh.bhaidkar@gmail.com
Geriatric care in India: Challenges and Opportunities
published last year highlighted the large Pradesh conducted by Guha R found that
number of older people in some countries among the population over 60 years of age,
(India and China in particular) will 10% suffer from impaired physical mobility
challenge national infrastructure and health and 10% are hospitalized at any given time,
systems in particular. While there is a both proportions rising with increasing age.
gigantic paradigm shift in ageing, what is In the population over 70 years of age,
unfortunate is that Indian Medical Science more than 50% suffer from one or more
does not even offer geriatrics as a branch of chronic conditions. The chronic illnesses
study. It has traditionally remained a usually include hypertension, coronary
neglected area of medicine. According to an heart disease, and cancer. According to
article published in the Hindustan Times on Government of India statistics,
Aug 20, 2015 In India, the concept of cardiovascular disorders account for one-
geriatric care has drawn a blank. Swati third of elderly mortality. Respiratory
Sharma (2015) disorders account for 10% mortality while
infections including tuberculosis account
Similarly the nursing and other paramedical for another 10%. Neoplasm accounts for
staff members are not formally trained in 6% and accidents, poisoning, and violence
providing care for elderly patients. Most constitute less than 4% of elderly mortality
medical centers do not have a dedicated with more or less similar rates for
geriatric care facility; the few which exist nutritional, metabolic, gastrointestinal, and
are clustered in the urban areas where the genito-urinary infections. Tripathi (2014)
costs are prohibitively high. Many NGOs Quoting Guha (1994).
and charitable trusts run old-age homes,
day-care centers and mobile medicare units Elderly women are more frequently affected
that provide care to the elderly population; as compared to males with health
they are generally urban based focusing on complications in both urban and rural
tertiary or palliative care as opposed to India.
primary care. Tripathi (2014).
Limited instruments of social security, low
Medical and Socio-economic Problems penetration of health insurance schemes,
Faced by the Elderly lack of access to benefits such as provident
fund, pension schemes, and gratuity to a
Elderly individuals are victims of dual majority of the elderly, further compound
medical problems i.e. susceptibility to both the financing issue. Existing insurance
communicable and non-communicable coverage while insufficient comprises
diseases. Reduced sensory functions like predominantly of government funded
vision and hearing along with age related schemes that have inadequate coverage.
physiologic changes lead to an increased Health care expenses remain a burden even
susceptibility to communicable diseases to for the insured elderly as the premiums rise
the elderly. Tuberculosis is generally more proportionately with increasing age with
prevailing in elderly than in younger almost non-existent coverage for outpatient
individuals. care or pharmaceutical needs. This results
in a very high out–of–pocket expenditure
A large number of the elderly in Rural India on healthcare by elderly people.
are also smokers and alcoholics. According Deloitte(2013).
to a study of 100 elderly people in Himachal
It is possible that many older people take ill of the elderly. Specialist training of the
health in their stride as a part of existing medical and nursing staff can be
“usual/normal ageing.” This is important to done at a relatively lower cost. Mahajan
note because self-perceived health status is (2013).
an important indicator of health service
utilization and compliance to treatment Provision of geriatric care is a compound
interventions. Verma(2013) problem and will require a meticulous and
multidisciplinary approach
As India looks at a serious demographic
shift in the coming decade it becomes A significant transformation of the
imperative to critically evaluate the landscape of elderly healthcare in India
situation and take definite measures to requires a collaborative multi stakeholder
tackle the challenge and gear up to meet approach to produce a 'step' change in the
the needs of the elderly in a comprehensive future provision of healthcare to the
manner. elderly. Deloitte(2014)
Role of the Government Development of innovative health

insurance products to ensure a
The challenge posed by a growing elderly comprehensive and affordable medical care.
population is significant especially for a
developing country which already faces Ensuring participation of all stake holders
constraints on capacity and expertise to on a single platform to create a policy
deliver satisfactory care to the existing framework and to serve as an enabler and
needs of its population. The considerably facilitator of healthcare reform.
increased number of individuals requiring
elderly care will put an even greater strain Facilitating collaboration between the
on the already stretched public health government, care providers, insurers and
system. Deloitte (2014) patients to catalyst policy change
involving elderly care
In India the family remains the primary care
giver for the elderly which accesses Strategic management of these factors
healthcare services from the general would enable India to reach its targeted
healthcare system which has a limited future state of elderly care provision, and
expertise and specialist resources to meet bring it at par with global standards
the special requirements of the elderly. The Deloitte (2014)
government needs to expand its focus from
the traditional areas like maternal and child Conclusion
health, communicable diseases and
sanitation to elderly care. Care of the elderly in addition to being a
social challenge is also an emotional one.
One practical approach could be to As the societal norms change from having
integrate geriatric care at the primary care joint families where there were well defined
level. The already existing primary care roles for all members of the family along
facilities spread across the country can be with support system to care for the elderly
modified to accommodate the special needs to rise of nuclear family and focus on the
individual. Thus the need is even greater India: A long way to go” J Midlife
for the government to step in with more Health. 2014 Oct-Dec; 5(4): 205–206.
commitment and resources to tackle this doi: 10.4103/0976-7800.145176
challenge. On World Health Day in 2012,  Nath, Anita and Ingle Gopal Geriatric
The WHO India country office dedicated Health in India: Concerns and
theme to the health care of the elderly. Solutions Indian J Community Med.
Absence of disease and promotion of health 2008 Oct; 33(4): 214–218. doi:
go hand in hand. It will be a serious 10.4103/0970-0218.43225
challenge for any government of the day to
 Swati Goel Sharma “Geriatric care in
live up to.
India still in its infancy” Hindustan
Times Aug 20, 2015
References
http://www.hindustantimes.com/health-
and-fitness/geriatric-care-in-india-still-
 Deloitte Ensuring care for the golden in-its-infancy/story-
years – Way forward for India FICCI 7th SsPNcQFSmgPrWwVv8q11MP.html
Annual Health Insurance Conference
 Mahajan et al “The Indian elder: factors
5th December 2014
affecting geriatric care in India “Global
 Guha R. “Morbidity Related journal of medicine and public health
Epidemiological Determinants in Indian 2013. www.gjmedph.org Vol. 2, No. 4
Aged – An Overview”. In: 2013
Ramachandran CR, Shah B, editors.
 National Programme for Health Care of
Public Health Implications of Ageing in
the Elderly. India current affairs 2011. A
India. New Delhi: Indian Council of
leading resource of online information
Medical Research; 1994.
of India. Available from:
 Healthy ageing focus of WHO activities http://www.indiacurrentaffairs.org/
on World Health Day (2012)
 Varma Ramesh et al “National Program
http://www.whoindia.org/linkfiles/whd_
of Health-Care for the Elderly in India:
2012_whd_2012_event_press_release.
A Hope for Healthy Ageing” Int J Prev
pdf
Med. 2013 Oct; 4(10): 1103–1107.
 Tripathy, Jaya Prasad “Geriatric care in
QUOTES
“Truth is a free creation of the human spirit that never would exist at all if we did
not generate it ourselves.”
Rudolf Steiner
“The human spirit needs to accomplish, to achieve, to triumph to be happy.”
Ben Stein
RESEARCH
A Study On Preferred Investment Avenue Among Senior

Citizens With Reference To Indore City, India
Sneha Pungalia*, Dr. Vinay Goyal** & Dr. Manish Kant Arya***
ABSTRACT
Investment is the employment of funds with the aim of getting return on it. It is the commitment of funds
which have been saved from current consumption with the hope that some benefits will accrue in future.
Investors have a lot of investment avenues to park their savings. The risk and returns available from each
of these investment avenues differ from one avenue to another. The available literature relating to
preferred Investment Avenue among senior citizens is very little and failed to provide a lot of information.
An attempt has been made in this study to Provide awareness among senior citizens about various
investment avenues available to them and to study Preferred Investment Avenue by them.
KEYWORDS: Senior Citizens, Investment Avenue, Factors.
1. Introduction the pension that the elderly receive are

usually inadequate to meet the cost of living
India is a world within the world. Sixteen which is always on the rise. So for fulfilling
per cent of the world's population lives in this gap senior citizens should continue to
the country. The ageing of the world look for different avenues of income for this
population is progressive and rapid. The they have to plan for right place for
number of people who turn 60 each year deployment of their retirement funds for
worldwide is nearly 58 million. In 2012, fulfilling their needs
aged people 60 or over represent to almost
11.5 per cent of our total global population. 2. Objectives
By 2050 the proportion is projected to
nearly double to 22 per cent. The Indian 1. To understand the various investment
senior citizen population is currently the avenues available for senior citizens to
second largest in the world after china. make an investment.
According to census 2011 senior citizen 2. To study the awareness and adoption
population is 8.6 per cent of the total level of senior citizens about various
population and expected to increase by investment avenues.
12.4 percent by 2026.Senior citizen 2. To study the preferred investment
population faces number of challenges and avenues among the senior citizens.
and one of the most important among those 3. To analyze the factors considered for
is the financial insecurity. Retirement from making an investment by senior citizens.
service usually results in loss of income and
*Sneha Pungalia, Ph.D. Scholar, DAVV University Indore. Email: sneha.bajaj6@gmail.com

** Dr. Vinay Goyal, Assistant professor IIM RAIPUR Email: vinaygoyal@iimraipur.ac.in
***Dr. Manish Kant Arya, Reader IMS, DAVV, Indore. Email: maneesharya@gmail.com
A Study On Preferred Investment Avenue Among Senior Citizens With Reference To Indore City, India
Investment Avenues for senior citizens popular investment option which can offer
monthly, quarterly, yearly return. stands at
Senior citizen saving scheme (SCSS) around 7-8 per cent per annum for tenures
SCSS is special scheme only for senior ranging from 1-10 years. Senior citizens get
citizens. Investment in this scheme can be an extra 0.25-0.5 per cent per annum,
made only by people of 60 years of age or depending on the bank. Fixed deposit issues
above. The minimum investment limit in from various companies offer higher interest
this scheme is 1, 000 and the maximum rates than bank fixed deposits. However,
limit is 15 lacs. This investment qualifies such issues are limited and investors should
for deduction under Section 80C of the IT note that they carry credit risk. Investors
Act The Senior Citizen's Savings Scheme should check the credit rating of the
has a maturity of 5 years, which is companies before investing in the company
extendable by 3 years. Rate of return offered FDs. Fixed deposits from companies rated
in this scheme is 8.6 % per annum. Interest AA and above are pretty safe and carry low
income will be paid every 3 months. default risk. Investors should be on the look
for such issues, as these are good investment
Post Office Monthly Income Scheme options.
(POMIS) As name suggests one can get
assured monthly return from investment Senior Citizens Pension Plans (Varistha
under this scheme. This has been a popular Pension Bima Yojana): This scheme for
investment option with senior citizens for senior citizens is run by LIC. The interest
many years. POMIS offers guaranteed rate offered by Varistha Pension Bima
7.80% annualized returns to investors. The Yojana scheme is the highest among all the
maturity period of these schemes is five annuity plans offered by different life
years. The maximum investment limit in insurance companies. It is an immediate
POMIS is only 4.5 lacs in one account in annuity plan offering an interest rate of 8%
POMIS or 9 lacs if the investor is to senior citizens, whereas the best plans
investing in a joint account. There is no from the private life insurance companies
Section 80C benefit for POMIS offer only about 7.3 – 7.6%. LIC is offering
investment. The interest income from more as the scheme is sponsored by the
POMIS is taxed as per the income tax slab government.
of the investor. With rising cost of living,
seniors cannot rely on solely POMIS for Mutual funds (MFs) Depending on the
their income needs. Nevertheless POMIS risk profile, one may allocate a certain
remains a good risk free investment option percentage into equity mutual funds (MFs)
for senior citizens. with further diversification across large-cap
and balanced funds with some exposure
Bank and Company Fixed Deposits: Fixed even in monthly income plans (MIPs).
Deposit (FD) is a low risk financial Retirees would be advised to stay away from
instrument where an investment is made for thematic and sectorial funds, including
a fixed period of time resulting in a fixed mid- and small-caps. The idea is to generate
rate of returns. This is best suited for stable returns rather than focus on high but
investors with a low risk appetite and who volatile returns. Debt MFs can also be a
wants to invest a fix sum of money to earn a part of a retiree's portfolio. Taxation of debt
fixed rate of interest. Fixed deposit is most funds makes it a better choice over bank
deposits, especially for those in the highest years, after which either the borrower or the
tax bracket. While interest on bank heir (in case of the death of the borrower)
deposits is fully taxable as per the tax can either repay the loan or sell the house
bracket (30.9 per cent for highest slab), and settle the transaction. The excess
income from debt funds gets taxed at 20 per amount generated in the process is passed
cent after indexation, if held for three years on to the borrower or the heir
or more irrespective of the tax bracket.
3. Review of literature
Rent from Real Estate
Real estate is another good way to generate Rajendra Prasad (2017) stated that ageing
regular income. Real estate investment is is the natural stage of human life, it brings
high risk high return affair. Senior citizen with it innumerable problems for the people
can generate income by renting property who have grown old. These problems can
purchased by senior citizen. There are risks be distinguished under subheads health;
involved in this option risk like not getting economic, physiological, housing and elder
tenants or right tenants or fall in property abuse related India faces many challenges in
rates. welfare for its elderly population.
Long term Government Bond Dr. T. Tamil Selvi (2015) the results of
Long term government bond is one of the the study indicate that the investors prefer
safest options to get regular income. to invest only in safer avenues. Further
Government bond usually offers 8% return analysis of the data indicates that the family
half-yearly. These bonds are long term culture plays a dominant role in
bonds and at the end of the tenure you will investments decisions. Among the
get back your principal amount. These conventional investment avenues, bank
bonds are also tradable in secondary deposits and gold are the most preferred
market, so you can also sell them if you avenues, while insurance schemes and post
want to get rid of them. office instruments are getting increased
attention. Majority of the respondents have
Reverse Mortgage not preferred to invest their savings in UTI
This is an product for those who have a lot and Mutual funds which are the latest
of real estate but not much free cash. In investment schemes and hence the
this, the retired person keeps a house as government should take appropriate steps
collateral with the bank. In return, the to persuade the investors to invest in the
bank makes monthly payments according to above schemes.
the value of the house. The borrower can
opt for monthly, quarterly, annual or lump Dr. E.Apparao, Prof. N. Kishore Babu
sum payments. As reverse mortgage is a (2015) The issues investigated in the
loan, the interest rate is either fixed or present study include awareness of
floating. investment avenues, investment pattern,
the most preferred objectives of investors,
Also, the payments are not taxable. This is and investment evaluation. Moreover, this
because the amount received from the bank study is mainly undertaken in Coastal
is considered a loan and not income. As per Andhra, a very prominent region of
the RBI guidelines, the maximum period for Andhra Pradesh.
which the property can be mortgaged is 20
Dr. M. Prakash (2014) stated on preferred the investment choice of people in

investment choice of people in few in Kurumbalur. Analysis of the study was
Bangalore. Analysis of the study was undertaken with the help of survey
undertaken with the help of survey conducted. After analysis and
conducted. After analysis and interpretation of data it is concluded that in
interpretation of data it is concluded that Kurumbalur respondents are medium aware
some respondents are not much aware about various investment choices but they
about various investment choices and also do not know aware about stock market,
not much aware about the investing pattern equity, bound and debentures.
in stock market, equity etc.
Manoj kumar dash (2010) The purpose of
Dr. M. Nazer (2013) Stated that In this study was to determine whether the
Thanjavur District respondents are more variables such as demographic
aware about various investment avenues characteristics (age, gender) and
like Insurance, PPF, bank deposits, small investment patterns could be used
savings like post office savings etc. For that individually or in combination to both
awareness program has to be conducted by differentiate among levels of men and
Stock Brokering firms because most of the women investment decisions and risk
respondents unaware about this new service tolerance and develop some guidelines to
and about stock market the perceptions of the investment managers to design their
the respondents of different are varied due investment schemes by considering these
to diversity in social life, living pattern, views of individuals.
income level etc.
Pieterse (2008) argues that in the past,
Smita Srivastava; Gunjan Saxena (2012); senior citizens received care from their
“Investment Trend Now & Then: A Survey children when they reached the age of
Based Study of Moradabad (U.P.)”. The seniority and this is no longer the case.
paper attempts to know the awareness level Care for senior citizens is increasingly
of the investment alternatives available becoming their own responsibility, and this
amongst the investors & compares the is often met through long-term savings and
investment trend now from 20 years back. state pensions.
The area of the study is Moradabad, a city
in Uttar Pradesh and the sample size is 150. 4. Research Methodology
The data used in the study comprises of
both Primary & Secondary data. Most of This research follows the survey research
the investors are risk averse & thus ignore methodology based on previous research in
risky investments like derivatives, equities related area; a questionnaire was
& prefer safe heaven like bank deposits, constructed to study the Senior citizens
post office deposits, gold, etc. There is very awareness, preferred investment avenue.
little enhancement in the awareness level After pilot testing the questionnaire was
for newer financial instruments amongst administered to 100 persons. The data was
investors over the years. obtained through the use of structured
questionnaire and convenience sampling.
N. Geetha, Dr. M. Ramesh(2011) Stated The data were analyzed with percentage
that people's choice in Investment has been method, tables are also prepared.
undertaken with the objective, to analyze
5. Data Analysis case of bank fixed deposit (93%), LIC

pension plans (89%),Post office monthly
Demographic profile of the Respondents: saving scheme(85%), national saving
It is observed from Table 1 that the certificate(76%), SCSS ( 66%). The level
respondents vary in gender, age and of awareness is low about share market
education. Total number of respondents is (66%),Bonds and debentures(53%) Mutual
100 out of them 60 are males 40 are fund scheme (47%), and company deposit(
females. 46 respondents' falls in age group 47%) and very low awareness in case of
60-65,37respondents in age group 66-70, 17 Reverse mortgage Scheme(97%).
respondents are above 70. 26 respondents
education is below graduation ,56 Adoption of different investment option:
respondents education is graduation ,18 It is observed from the Table 6 that the
respondents are post graduate. level of Adoption level is also high in case
of Bank fixed deposits (94%), LIC pension
Senior citizens are worried about their plan (92%), Post office monthly saving
Financial need: It is observed from Table 2 scheme (89%). The adoption is low in case
that 63% respondents are worried about of bonds and debentures (39%), company
their financial need, 23% are no worried fixed deposits (35%), and not ready to
about their financial need, 14% adopt reverse mortgage scheme (98%) and
respondents are neutral for this statement. share market (54%). As is clearly evident
from above table 6, the senior citizen here
Have you planned your financial need: It is seen preferring traditional investment
is observed from Table 3 that 48% avenue rather than modern investment
respondents planned for their financial avenue.
need and 34% in process of planning, 18%
respondents are neutral for this statement. Preferable investment option for securing
How you are going to fulfill your financial your financial life for future: In this senior
need :It is observed from Table 4 that 17% citizen asked to rank (1 to 5) 1 for highly
people are dependent on their children for preferable investment and so on. This data
their financial assistance and most of them also provide us to know the investment
are above 70 years. 38% dependent on their portfolio of respondents. It is observed from
own investment and near about 29% people Table 7 that top five preferable investment
dependent on both, 16% respondents who options for senior citizens are Bank fixed
were government employee are dependent deposit, Post office scheme. LIC pension
on their pension. plan, Rental income, Senior citizen saving
scheme (SCSS).
Are you aware of various investment
option : It is observed from Table 5 that Preferred source of information for
37% respondents are aware about various making investment decision: In this senior
investment options, 49% people are citizens are asked to rank (1-3) 1 for highly
partially aware, 14% not aware and they are preferable source of information and so on.
mostly above 70 years and females. It is observed from Table 8 that the highly
Are you Aware of different modes of preferred sources of information for making
investment :It is observed from the Table 6 investment decision is friends and family
that the level of awareness is high in the than financial advisor and then print media
Lower dependency on advertisement and high among them and they start planning
internet. for the same.
Factors affecting before making The senior citizens fall into age group 60-
investment decision: for this Likert scale of 65,65-70 are mostly dependent on their
5 points is used with 1=Strongly agree, own investment less interested on
2=Agree ,3=Neutral,4= Disagree, depending on children’s income but age
5=Strongly disagree. group above 70 are dependent on both.
It is observed from Table 9 that 56 Senior citizens are partially aware about
respondents strongly agreed on safety and various investment avenues. Awareness is
security for their investment and then high in males less in females. Senior
regular income with 53 responses is major citizenspreferred avenue is banks fixed
concern for senior citizen for making any deposit, post office saving scheme, LIC
investment decision. An interesting pension plans, rental income, SCSS.
observation above the table is that mean is
varying between 1.47 to 2.49 and overall Reverse mortgage scheme which is specially
mean 2.01. analysis shows that respondent designed for senior citizens by financial
are strongly agree, and agree with all the institutes are less popular among senior
factors safety and security and regular citizen.
income having same mean 1.47 so
conclusion from table is that senior citizen For making investment decision senior
needs safety for their investment and citizens preferred suggestion from friends
fulfilling the everyday need they wants and family and then financial advisor and
regular income. print media.
Are you satisfied with interest or return Safety and security and regular income is
given by financial institutions to senior major concern for senior citizens for making
citizens in India : For this Likert scale of 5 any investment decision. Bank fixed
points is used with 1=highly deposit, post office scheme, LIC pension
satisfied,2=Satisfied ,3=Neutral,4= policy are preferable safest avenue for senior
Dissatisfied, 5=highly dissatisfied. It is citizens.
observed from Table 10 that respondents
are dissatisfied (35 respondents) and highly The interest rate and return given by
dissatisfied (27 respondents) with the financial institutions to senior citizens is
interest rate an return by financial not sufficient for them as they are not
institutions on their investment . it is satisfied with this rate.
observed from table 10 that senior citizens
preferred investment avenue is bank fixed 7. Recommendations
deposit ,post office scheme but they are not
satisfied with return on their investment. Senior citizens should be provided proper
information regarding different investment
6. Findings option by financial institutions. Through
this study we found that financial institutes
When people enter into the category of provides one good option for regular
senior citizens the worry of financial need is income for senior citizens who are asset
rich. And cash poor that is reverse senior citizens in India” International
mortgage. But most of the senior citizens are Journal of Humanities and Social
unaware about it. Financial institutions Science Research ISSN: 2455-2070;
should have one help desk for senior Volume 3; Issue 1; January 2017; Page
citizens which can provide financial literacy No. 35-37
to senior citizens and help them in  Dr.T.Tamil.Selvi, 2015 “Investors
identifying and selecting the best portfolio Attitude towards Investment Avenues”
for their regular income. International Journal of Management
The government of India should look after and Commerce Innovations ISSN
the needs of senior citizens by providing 2348-7585 (Online) Vol. 3, Issue 1, pp.
them best suitable investment option with (717-722), Month: April 2015 -
inflation adjusted return so that they can September 2015.
survive easily.
 Dr. E.Apparao & Prof. N. Kishore
8. Conclusion Babu,2015 “A survey on Investors
Perception towards Investment
The study on preferred investment avenue Avenues in Godavari Districts of
among senior citizens has been undertaken Andhra Pradesh” Acme Intellects
with the objective to analyze the awareness International Journal of Research in
and adoption of different investment Management, Social Sciences &
avenues for people in Indore city. Analysis Technology vol- 9 No. 9 Jan 2015,
of the study was undertaken with the help ISSN 2320 – 2939 (Print) 2320-2793
of a survey conducted. After analysis and (Online).
interpretation of data it is concluded that in  Ashly Lynn Joseph, 2 Dr. M. Prakash
Indore city respondents are worried about 2014. “A Study on preferred investment
their financial position after retirement and avenues among the people and factors
they start a planning for getting regular considered for investment”
income. They are more concerned about International Journal of Management
safety and security and regular income from and Commerce Innovations ISSN
their investment for fulfilling this need. 2348-7585 (Online) Vol. 2, Issue 1, pp:
They preferred bank fixed deposit, post (120-129), April 2014 - September
office scheme and LIC pension policy. Most 2014
of the senior citizens are not satisfied with
the return on interest what they are getting  J. Sidharthul Munthaga, Dr.M.Nazer,
from financial institutions but for the safety 2013 “A study on the attitude of the
concern they have no other option. respondent towards Investment choices
Government of India and financial in thanjavur district, Tamilnadu”
institutions of India have to pay attention IJMSS Vol.01 Issue-07, (December,
to this category of population as they are 2013) ISSN: 2321–1784.
also very important part of our society and  N. Geetha ,Dr. M. Ramesh, 2012. “A
increasing in numbers year by year. Study on People's Preferences in
Investment Behaviour”.IJEMR –
9. References November 2011-Vol 1 Issue 6 - Online
- ISSN 2249 – 2585 - Print - ISSN 2249
 Rajendra Prasad ,2017 “Problems of – 8672.
 Gaurav Kabra, Prashant Kumar Mishra, “International Journal in

Manoj Kumar Dash, 2010 “Factors Multidisciplinary and Academic
Influencing Investment Decision of Research (SSIJMAR) Vol. 1, No. 4,
Generations in India: An Econometric November-December (ISSN 2278 –
Study” Asian journal of management 5973)
research, ISSN 2229 – 3795.  Pieterse, H 2008. An Evaluation of
 Dr. D. Harikanth B. Pragathi , “ Role of Mature Consumer Needs in the Banking
behavioral finance in investment Sector. MA Dissertation in Psychology,
decision making - a study on select UNISA 2008.
districts of Andhra pradesh, India
Table 1. Demographic profile of the Table2 Senior citizens are worried about
Respondents their Financial needs:
Number % Particulars Number %
Gender Male 60 60 Worried 63 63
Female 40 40
Not worried 23 23
Age 60-65 46 46
Neutral 14 14
66-70 37 37
Total 100 100
Above 70 17 17
Education Below Graduation 26 26
Graduation 56 56
Post-Graduation 18 18
Table 3 Have you planned your Table 4 How you are going to fulfill your
financial need financial need
Particulars Number % Particulars Number %
Planned 48 48 Dependent on children 17 17
Process of planning 34 34 Own investment 38 38
Neutral 18 18 Both 29 29
Total 100 100 Pension 16 16
Total 100 100
Table 5 Are you aware of various investment option
Particulars Number %
People are aware 37 37
Partially aware 49 49
Not aware 14 14
Total 100 100
Table 6 Are you Aware of different modes of investment

Investment option Awareness of the Adoption of the
option (%) option (%)
High low Not High low No

aware
Bank fixed Deposit 93 7 - 94 3 3
Company Fixed Deposit 26 47 27 22 35 43
Senior citizen saving 66 23 11 49 27 24

scheme(SCSS)
Post office monthly saving scheme 85 13 2 89 8 3
Mutual Fund Scheme 30 47 23 25 28 47
Share Market 20 66 14 18 28 54
National saving Certificate 76 17 7 55 31 14
Reverse mortgage Scheme 2 1 97 - 2 98
Bonds/Debentures 32 53 15 18 39 43
LIC pension Scheme 89 11 - 92 6 2
Kisan vikas Patra 54 32 14 34 24 38
Table 7 Preferable investment option for securing your financial life for future
Investment option Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Bank Fixed Deposit 29 22 13 14 12
Senior citizen saving 8 10 14 16 14
scheme(SCSS)
Post office scheme 26 26 19 14 13
Mutual Fund scheme 12 13 11 11 15
Real Estate ( Rental Income) 4 9 15 10 16
Company Fixed Deposit - 2 - 5 7
Share Market - - 5 4 6
Reverse mortgage - - - 1 2
Bonds/Debentures 4 3 - 7 5
LIC pension scheme 15 14 20 13 7
Gold/silver 2 1 3 5 3
Others - - - - -
Total 100 100 100 100 100
Table 8 Preferred source of information for making investment decision

Sources of information Rank 1 Rank 2 Rank 3
Print media (News Paper) 15 18 27
Friends and family members 43 24 16
Financial Advisor 23 19 29
Past experience 13 25 15
Advertisement 4 10 8
Internet 2 4 5
Total 100 100 100
Table 9 Factors considered before making investment decision

Particulars Mean 1=SA 2=A 3=N 4=D 5=SD Total
Liquidity 1.61 43 35 4 18 - 100
Regular income 1.47 53 47 - - - 100
Safety and 1.47 56 41 3 - - 100
security
Return 2.30 34 37 6 11 12 100
Market reputation 2.11 37 40 7 7 9 100
Investment 2.19 34 37 11 12 6 100
Amount
Lock in period 2.49 26 40 8 11 15 100
Time for maturity 2.02 42 36 7 8 7 100
Tax Benefit 2.44 28 38 9 12 13 100
Overall Mean 2.01
Table 10 Are you satisfied with interest or return given by financial institutions
to senior citizens in India.
Particular 1=HS 2=S 3=N 4=D 5=HD Total

Interest / return on - 23 15 35 27 100
investment
RESEARCH
The Encumbered Growth of E-commerce In India:

Can We Help?
Himanshi Agarwal*, Dr. Shailja Dixit**

ABSTRACT
India has witnessed a drastic switch in the purchasing and selling pattern of various goods and services
during the last 15 years. The introduction of e-commerce has revolutionized both global and domestic
economies. A number of developed economies like the USA, China and the UK have demonstrated a
clear leadership in e-commerce attributing to higher internet penetration, technological advancement,
infrastructure facilities and the increased use of smart phones, laptops/PCs and tablets. However, India,
being a developing economy, is experiencing a much slower growth of e-commerce in spite of having a
larger number of internet users as compared to the top ranked e-commerce market, the USA. The very
obvious reasons behind this stunted development are India's infrastructural, social, legal and political
drawbacks which need immediate consideration so that strategies could be devised to uproot those
challenges which are hampering the expected uptake of e-commerce in India.
This paper aims at presenting a comparative analysis of the internet penetration and e-commerce growth
between India and top three countries having the biggest ecommerce market in the world, i.e., USA,
China and UK. The focus is on discussing those issues which have hindered the e-commerce growth in
India and suggesting few strategic measures that are being followed by the e-commerce giants and it is
expected that few judicious policy implications will make India a competitive e-commerce market in the
near future.
KEYWORDS: E-Commerce, Internet Penetration, Network Connectivity, Payment

Gateways, Logistics, M-commerce
Introduction sector. A global data on the number of

internet users and e-commerce sales (figure
E-commerce is the exchange of goods and 1) reveal that they both increase hand in
services using the capabilities of the hand, that is, the growth in number of users
internet (Shahar, 1997). This definition directly affect the volume of online
highlights the internet as the leading factor transactions.
responsible for the growth of e-commerce
*Himanshi Agarwal, Research Scholar, Amity Business School, Amity University, Lucknow Campus
Email: neha.5890@gmail.com
**Dr. Shailja Dixit, Associate Professor, Amity Business School, Amity University, Lucknow Campus
Email: shailjadixit1@gmail.com
The Encumbered Growth of E-commerce In India: Can We Help?
Figure 1: E-Commerce Sales and Number of Internet Users in The World
Source: Internet live stats, statista.com&wevio.com
While e-commerce has become a familiar internet users in India would have involved
part of life in developed nations, it is still in online shopping, the Indian e-commerce
considered an innovation in developing market holds the potential to surpass that of
economies like India. Despite having a the USA.
large number of internet users and being
the third largest smart phone market in the No doubt, the annual growth rate shown by
world (Mallya, 2015), the country has Indian e-commerce industry during the past
proceeded at a relatively slow pace in the e- decade is appreciable still India holds 83rd
commerce area. At present, only a small rank out of 130 in the global e-commerce
number of business organizations and market according to the UN Conference on
consumers are using e-commerce as a Trade and Development. So the questions
preferred mode of exchange. A recent which naturally arise are: why Indians have
report titled 'India on the go-mobile been so reserved in adopting e-commerce
Internet Vision' by IAMAI & KPMG said channel? What are the factors that are
that the overall internet user base in the creating hindrance in the way of e-
country is expected to touch 503 million by commerce to expand to its maximum
2017, which stood at approximately 350 capability?
million as on June 2015.That has made
India the second largest internet user base This paper contributes towards addressing
in the world only behind China. It is the above questions and highlighting few
among the three fastest growing markets for major challenges faced by the e-commerce
internet usage worldwide, according to a growth in India along with some suggested
study conducted by ASSOCHAM & measures to overcome these hindrances.
Comscore in October 2012. But the
Forrester Research estimates that only Objectives
13.25% of the internet users in India
purchased products online in 2013 and this 1. To study the present scenario of e-
figure is expected to rise to 28% by 2017. commerce in India.
This is only a small proportion and if all the 2. To justify that internet is the most
important factor that is driving the e- than by direct physical contact.

commerce growth. According to Laudon &Traver (2008), e-
3. To present a comparative analysis commerce is the use of the internet and the
between India and top three e- web to conduct business, that is, it's a
commerce markets of the world. digitally supported commercial transaction
4. To identify factors that hampers the among businesses and individuals.
e-commerce growth in India.
5. To suggest few strategies that could Another definition states that e-commerce
help Indian e-commerce market to is the process of buying, selling or
tackle those challenges. exchanging products, services or
information based on the following existing
2. Literature Review conditions in the developing countries: 1)
availability of the Internet and e-mail in
E-commerce is a general term for any type these contexts and will be used to
of commercial transaction or business that communicate business transactions, and 2)
involves the transmission of information use of the World Wide Web to enhance
over the Internet. Or e-commerce can be business activity (Turban, King, McKay,
defined as the use of computers and Marshall, Lee, &Viehland, 2008).
electronic networks to carry out business
with other businesses (B2B) or with From the above definitions, we can say that
customers (B2C) over the internet or the working of the e-commerce highly
another electronic network. depends upon the internet and World Wide
Web. The Internet is a global network of
According to the definition given by US interlinked computers, and, the World
Executive Office of the President “e- Wide Web is a global collection of
commerce is a commercial interaction over electronic documents (Holden, Belew,
the internet, which can lower costs Elad, & Rich, 2009, p. 3) that supplements
dramatically and facilitating new types of a graphical element to the Internet (Senn,
commercial transactions. As the internet 2004, p. 86). In other words, internet can
empowers citizens and democratizes be regarded as the backbone of
societies, it is also changing classic e-commerce.
economic paradigms. New models of
commercial interactions are developing as E-commerce is fundamentally changing the
businesses and consumers participate in an economy and the way in which businesses
electronic marketplace and reap the are conducted today (Barua et.al.,2001). It
resultant benefits. The internet has the compels the firms to find new ways to
potential to revolutionize retail marketing. expand their markets, to attract and retain
Commerce on the internet could total tens the existing customers by modifying
of billions of dollars by the turn of the products or services according to their
century. (UNCTAD, 2000). needs and restructuring their business
operations to deliver high quality products
Rosen (2002) states that e-commerce refers and services more efficiently and effectively
to the online business activities for products (Chan & Davis, 2000).
and services and it is useful to any form of
business transaction in which the buyers Apart from the studies mentioned above,
and sellers interact electronically rather there are a number of research reports and
survey based studies done by IAMAI, IMRB which refers to a period from 2009 to 2014
international, PwC, ASSOCHAM, BCG, and is availed from various journals, reports,
Internet & online Association, etc.which magazines, books and internet.
presents the status of ecommerce existing in Data analysis is done using statistical
the country with quantitative figures. techniques. Linear regression tool is
employed on the quantitative data to
3. Research Gap surface the relationship between e-
commerce and internet usage. SPSS
Various studies as stated above discuss one software and MS-excel is used for efficient
or the other aspects of e-commerce. Much data analysis. Data has been depicted in the
work has been done with respect to the form of charts and tables.
concept, origin and growth of ecommerce
as well as the major factors which have 5. Current Scenario of Ecommerce
driven this growth. The review of the In India
available literature suggests that there are
many challenges in Indian context which Online commerce in India is riding on the
are creating hindrance in the way of e- high pace at a growth rate of 60-70%
commerce penetration because India's annually to capture the market which has a
economy, geography and demography is huge hidden potential. E-commerce in
very different from that of western India has progressed significantly in the last
countries. Thus, the present study intends decade and what is interesting is that the
to identify those challenges which are entire evolution of e-commerce in India
hampering the e-commerce growth in India happened over 15 years. In advanced
and suggest few strategies which could help markets like the USA, it took over 50-60
online market to expand to its full years. The Indian e-commerce sector has
potential. seen a remarkable growth in 2014. Rana
Kapoor, the President of ASSOCHAM
Contribution of The Study India, quoted in a report Future of e-
This descriptive research work would help commerce: Uncovering Innovation,
to identify those factors which are “Increasing internet and mobile
hampering the growth of ecommerce penetration, along with the growing
development in India and how could these acceptability of online payments and
obstacles be tackled with successful favorable demographics has enriched the e-
implication of the few measures discussed commerce sector in India with the unique
alongwith. This will help the ecommerce opportunity to fundamentally alter the way
firms to expand their online businesses and companies connect with their customers.
become profitable in near future. Due to this digital revolution, the e-
commerce sector in India become 4 times
4. Methodology its size, from $3.8 billion in 2009 to $17
billion in 2014, growing at a CAGR of
It is a descriptive survey that is exploratory 37%. It is expected that the sector will cross
cum applied in nature. It s based on the the $100 billion mark by 2020 and will
analysis of secondary data and generalizing contribute over 4% to India's GDP.”
conclusions from them. It is important to
flag that the secondary data is used here
Figure 2: India's E-tail And E-commerce Growth
Source: IAMAI, CRISIL, Gartner, PwC Analysis and industry experts
According to Forrester Research, only 17% in the country crossed 350 million with
of India's total population in 2013 was around 27% penetration and this will result
online and out of it only 14% or 28 million in the further increase of online buyers.
people were online buyers. This figure According to the PwC report Future of
raised over to 40 million as the level of India - The Winning Leap, introduction of
internet penetration rose to 24% in 2014 new technologies, especially laptops, tablets
and with a gradual increase of 27% in the and mobiles, have brought a social change
number of internet users during the first in India that is difficult to enumerate.
half of 2015, the total internet subscribers
Figure 3: Number of Internet Users & Internet Penetration in India
Source: Internet Live Stats & Statista.com
According to KPCB partner Mary Meeker's million Internet users during the year. The
2015 Internet trends report, India is the report also stated that 41% of total e-
largest country in terms of new Internet commerce sales in India come from mobile
user additions by adding 63 million Internet devices which indicate that India is the
users by the end of 2014 that is more than leader in use of mobile devices for e-
double of China which added that 31 commerce transactions.
Figure 4: Mobile as % of Total E-commerce Sales, 2014
Source: Stanley Morgan Research & KPCB
The number of smart phone users is etailing market in India accounts for only
expected to grow at a CAGR 91% from 8.7% of organized retail with $1.6 billion
2012 to 2016 when it jumped from 29 which is just a miniscule fraction of India's
million to 382 million. Similarly, the overall retail industry that stands at $500
number of 3G subscribers could expand at a billion; retail e-commerce has achieved a
CAGR of 84% from 23 million to 266 three times growth since 2011, that is
million during the same period, revealed mainly driven by million dollar investments
the report by PwC, E-commerce in India: initiated by domestic and foreign investors.
Accelerating Growth. Mobile commerce is In the coming few years, E-tail is set to
also growing rapidly as a steady and safe spring up to $6-8 billion. E-tailing has
supplement to the e-commerce industry. become the fastest growing segments in the
larger markets having grown at a CAGR of
Travel is the most profitable sector in around 56% over 2009-14. Apparels &
India's e-commerce with around 71% share. accessories, electronics and books are the
This business has grown at a CAGR of 32% highest selling products through internet,
over 2009-13. According to the report constituting around 30% of the product
Future of e-commerce: Uncovering distribution.
Innovation by ASSOCHAM, currently, the
Figure 5: E-Commerce & E-Tail in India
Source: Technopak Analysis
Undoubtedly, India is one of the most boost the sector by introducing internet and
rapidly growing e-commerce markets in the broadband to each and every remote corner
world and holds the second position only of the country and will thus help to increase
after China with 31.5% annual growth rate, trade. This initiative has proposed
still it is almost 10 years behind China in investment of nearly $17 billion and it is
the e-commerce space. expected that this will definitely transform
India into a connected and developed
Today's consumers are highly pressurized economy. It would also attract foreign
due to scarcity of time as well as they are investments and create millions of jobs.
attracted by the convenience and increased
use of plastic money, thus, making their Although, it has been 15 years since the e-
way towards more online consumption. Commerce trend is making rounds in India
Furthermore, favourable demographic but the appropriate ecosystem has now
profile, limited geographical accessibility by started to take its place. Moreover, the
brick & mortar retailers, increase in Indian e-Commerce market has enjoyed an
internet penetration, increased use of extraordinary growth of almost 50% in the
smartphones & reducing data charges are last five years. Factors like increasing
the basic factors that offer high market internet access, astounding penetration of
potential for e-retailing in India. mobile phones and healthy investment
have driven the growth of this industry and
The Modi Government has initiated the if current projections continue to go by,
ambitious 'Digital India' project with an India is on the verge of becoming the
aim to offer a one-stop shop for all the world's fastest growing e-commerce market.
Government services. This will further
6. Data Analysis facilities has been the foremost reason for

the swift growth witnessed in e-commerce
The review of the available literature states sales volume. The high rate of the adoption
that the growth of Indian e-commerce of internet and smart phones is the biggest
industry is very high. However its growth reason for the growth of e-commerce in
depends upon a number of factors, the most India. The growth trend between the
important among which is internet number of internet users and the e-
connectivity. The growing number of commerce sales volume in India during the
internet subscriber base due to increased period of 2009 to 2014 is shown in the
availability of broadband, 3G and 4G data following figure:
Figure 6: E-Commerce Sales & Number of Internet Users in India
Source: IAMAI, CRISIL, Gartner, PwC analysis, Internet live stats & EKOS global & Wikipedia
Analysing the evolution and trends in the available data, in which, the e-commerce
volume of e-commerce sales in the market, sales volume is taken as the dependent
it should be highlighted that a strong variable that gets affected to a considerable
growth has been experienced in the recent extent by the increasing number of internet
years which runs parallel to the increasing users. The output generated by the SPSS
number of internet users in the country. To software through the above data is given
analyze the degree of relatedness between below:
the two variables, a simple linear regression
statistical technique is applied on the
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .996a .993 .991 .45568
a.Predictors: (Constant), NO. OF INTERNET USERS
Coefficientsa
Unstandardised Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .668 .408 1.637 .177
NO.OF .054 .002 .996 23.205 .000
INTERNET
USERS
a. Dependent Variable: E-COMMERCE SALE
From the above output, the co-efficient of subscribers since last few years. Indeed,
correlation comes out to be 0.996 which India is lucky to have around 302 million
signifies that a very high degree of positive internet users (as in 2014) that is the
correlation exists between the two second largest internet user base in the
variables, that is, the e-commerce sales world only behind China when it surpassed
volume experiences an upward growth as that of USA in December 2014.
the number of internet user's rise in the Still the rate of internet penetration is quite
country. This reveals that the growth in the low and the e-commerce sales volume is far
use of the internet positively influences the behind the top three e-commerce markets
development of e-commerce. of the world, the USA, China and the UK.
Undoubtedly, the current value of the In comparison to these countries, India
Indian e-commerce industry is the outcome ranks 83rd out of 130 global e-commerce
of the fact that India is witnessing a rapid markets.
growth in the number of internet
Figure 7: E-Commerce Sales in India & Selected Countries
Source: Reports by Internet World Stats, statista.com, EKOS, forester research and emarketer
The following table presents a comparison among the top three global e-commerce giants
and India. The data presents the situation as on December 2014.
CHINA USA UK India
POPULATION 1367.82 318.86 64.77 1259.70

(in millions)
INTERNET USERS 648.75 279.83 57.27 302.07

(in millions)
INTERNET PENETRATION 47.43% 87.76% 88.40% 23.99%
ONLINE BUYERS 178.41 176.29 41.81 40.02

(in millions)
ONLINE BUYERS 27.43% 62.85% 73.68% 13.25%

(as % of internet users)
COUNTRY’S SHARE OF 21.97% 9.58% 1.88% 9.81%

WORLD INTERNET USERS
TOTAL $449.12 $395.30 $99.19 $16.32

E-COMMERCE SALE (in
billions)
An empirical analysis of the above table search engine to find information and social
highlights that India being the second most networking. Only 13.25% of the total
populated country and the second largest internet subscribers use it for online buying.
internet user base of the world, stores an As a result, total e-commerce sales in India
immense unidentified opportunity to is just approximately 4% of that in the
overtake the total e-commerce sales of the USA, 8% of that in China and 16% of that
USA. But, in India, the internet in the UK. In contrast to it, the UK & the
penetration is quite low, moreover, people USA have much lower population but
mainly use internet for activities like there internet penetration is much higher
sending emails, playing games, using a as illustrated in the following figure:
Figure 8: Internet Penetration in India & Selected Countries (Dec 2014)
Thus, it is justifiable to say that reaching a India is still a small player though the
significant group of prospective customers potential is very big in India”, said Torbjorn
who are consistent users of the internet may Fredriksson, chief of the Information and
convert this mass of users into a large communications technology analysis at
market to become profitable enough and UNCTAD.
subsequently attractive to firms.
A report 'Major challenges faced by e-
“Technological disruption has driven commerce industry in India' by mavens
change in the e-commerce industry with (2012) writes that the Indian e-commerce
shoppers embracing multiple touch points industry is flourishing at a remarkable pace
in their purchase journeys. Overall, there is owing to high penetration rate of internet
humongous potential for the e-commerce and advanced electronic devices. Still, the
companies helped strongly by a growing current growth rate of e-commerce in India
internet user base and advancements in is far lagging behind than other developed
technology. However, this will not be countries. There are many major obstacles
without its share of challenges –operational, and challenges faced by an online
regulatory, digital, etc. A company's ability merchant.
to prepare itself proactively to meet these
challenges will decide the difference Thus there is a need to discuss those
between a successful venture and a failed challenges and devise strategies to tackle
one” remarked Sanded Ladder (Technology them so as to ensure a better e-commerce
Sector Leader, PwC India) “It's (e- growth. Discussion of these challenges and
commerce) taking off in India and you have measures for the betterment of e-commerce
some companies like Flipkart that are is the task of the following sections.
getting through but at the aggregate level
7. Discussion & Recommendations Moreover, the average speed of

internet in India is only 2.3 Mbps
a) Challenges To E-commerce Growth In which is quite low as compared to 17.4
India Mbps in developed countries. Besides,
The rapid growth of ecommerce in India is the cost of internet access is also high.
attracting massive attention of many e-  Problem of Logistics and Reverse
commerce merchants around the globe. Logistics: In India, metropolitans and
India is the second most populous country other major cities have fairly robust
in the world with 1.2 billion people and the logistic facilities but there are
number of internet users in India is also the thousands of towns that are not easily
second largest in the world. This shows that accessible. Several Furthermore, the
India hides an immense potential for the rate of goods returned by the customers
growth of e-commerce and this makes India is very high and for the e-commerce
one of the most appealing emerging markets retailers these returns are extremely
for ecommerce, despite of having lower per- expensive since the cost to manage the
capita purchasing power. But India is far return can be higher than the value of
from being a bed of roses. Following are the the product.
top challenges confronted by the online  Impractical Policies Negatively Affect
businesses in India. Profitability: To face the intense
competition among the ecommerce
 Network Connectivity and Internet retailers who are doing the same
Penetration is Low: Internet is the business, vendors adopt aggressive
foundation of e-commerce. pricing strategies, heavy discounts and
Disappointingly, Internet penetration offer coupons, free shipping, etc. This
in India is still 24% which is just a is the reason that even the firms like
small miniscule of what could be found flipkart and snapdeal are yet to reach
in several other western countries. their break-even points.
Figure 10: Various Modes of Payment in India
Source: IAMAI
 Absence of Consistent Cyber Laws: is not sure that a particular size of a

Privacy is a significant issue of concern dress would actually fit or not. Thus,
for both current and prospective having a global standard regarding the
ecommerce customers. The Indian size of these products would help to
customers are quite hesitant of giving reduce this doubt in the customer's
their personal details due to the mind.
increasing risk of scams played by  Lack of proper website management:
hackers. To regulate transactions on Most of the websites don't carry any
the Net, the Indian parliament passed digital datasheet, nice looking
The Information Technology Bill on photographs for their products,
May 17,2000 but, as it stands today, mechanism to check for daily prices
this Bill does not pay attention towards and product availability. Information
cases such as individual property rights, overload is another major problem
content regulation to privacy and data associated with the rapid growth of the
protection specific legislation. web contents. When customers try to
 Digital Illiteracy and Unique find something for online shopping,
Consumer Psyche: The Indian they get frustrated with a number of
consumers have little knowledge about popup and banner ads interrupting
the use of internet for purchasing. them. This only makes customers
They are more convenient in buying switch to other sites or drop their
products from nearby brick &mortar purchase decision.
stores. Companies that deal with  Tax structure: In India, the tax
products like apparels, handicrafts and structure differs from sector to sector.
jewellery face major challenges to sell This factor generates accounting
their products as the buyers prefer to problems for the Indian online
see and touch the product before they businesses. Besides, there are few other
purchase. countries like US which sustain zero
 Lack of trust and confidence: Trust is duty on e-commerce to prosper it in
very important in an e-business the country.
activity which is based on various
factors like brand recognition, product There is huge possibility for ecommerce
description, payment related issues, companies due to the flourishing internet
terms and conditions, money back user base and advancements in technology.
guarantee, return and exchange policy, However, this will come with its proportion
etc. Lack of trust by consumers often of digital, operational or regulatory
results in a heavy loss of goodwill and challenges. Company's preparation to
revenues. tackle these obstacles will decide its success.
 Lack of quality standardization and Therefore, it is important to trounce
product specification: Customers difficulties in Infrastructure, Financing,
often face a problem when an online Logistics and Consumer Loyalty to escort
ordered product does not match its the next surge of sustainable growth in e-
specifications. That's why, people often commerce. Appropriate laws for e-
hesitate to order those products which commerce are required to tackle the issues
carry little specialization like that in in legal and regulatory structure. Banks also
the case of clothes or footwear where it need to play a lead role as 'Facilitators' to
offer cost effective cash management delivery, damaged or lost parcels,

solutions, safe and secure payment gateways unfriendly attitude of delivery staff,
and other related banking services. lengthy and complicated return
procedures and no allied facilities such
B) Suggestions For The Success Of E- as installation of the product. To
commerce handle such problems, vendors should
either set up their own logistics system
Although many e-commerce companies are or get hold of the existing logistics
initiating to take benefit of the potential of providers. Strategic alliances among e-
online environment in India, there are commerce firms and third-party
many crucial challenges which remain to be logistics could produce better results
tackled before e-commerce would prove to  Tax and Regulatory Environment:
be an asset for the people. Few of the above Laws regulating e-Commerce in India
mentioned challenges are impossible to are still developing and do not have
remove in near future owing to external precision. An encouraging regulatory
factors which are not under control of atmosphere would be a crucial step
business owners but we can work around towards unleashing the ability of e-
and solve many others. Here are few Commerce and bring effectiveness in
strategies which c could be followed: processes, creation of new jobs,
development of the industry and
 Customer Experience: As the investments in infrastructure.
customer moves forward from research  Operational Framework: Various
to purchase fulfilment stages, their business models have been developing
anticipations change rapidly so E- fast in the e-Commerce sector mainly
commerce vendors need to know and due to increased competition and
appreciate these expectations and incapability of the vendors to prolong
devise their policies according to it. high costs. E-commerce firms need to
Convenient channels for delivery and adapt and innovate regularly to
returns need to be build up along with continue with their enterprises.
the specification of touch and feel the  Digital Infrastructure: Digital
merchandise before purchasing. They interruption has brought
must also ensure adequate after sales transformation in the e-Commerce
service. Online product reviews and sector with buyers adopting multiple
ratings, more advanced sizing and touch points in their purchases.
fitting tools along with supporting Companies need to spend adequate
videos should be provided. finance on technological
 Addressing Logistics: The Indian e- advancements and advertisements. In
Commerce sector needs to carefully the voyage of digital business
observe the expansion of their transformation, entrenching SMAC
marketplaces in the Tier 2 and 3 cities. technologies in the business is very
The brand image of e-commerce important.
ventures gets stained due to shortage of  Localization of Internet Content:
adequate logistic services. The English is still not widely used in India.
prominent problems faced in e- Spokesperson of Google India says that
commerce logistics are untimely or no search of web contents in Hindi has
grown 155% in the past year. retailing in the customer's shopping

Localization of content on internet is a venture which includes retail stores,
unique innovation. Snapdeal and online stores, mobile app stores, mobile
MakeMyTrip have already introduced stores, telephone sales and other
their multilingual interfaces in regional methods to transact with the
languages, others also need to follow customers. Many of the vendors like
the trend. Walmart, Target and Costco have
 Analytics & Personalization: already introduced this method of
Personalized product suggestions do retailing; others are also advised to
not directly amplify the trust of the mount on this technological
customers but they do express that the bandwagon.
online vendor is making best efforts to
understand the needs of the customers The ambitious 'Digital India Project'
and is trying upon them. This launched by Modi Government and the
implicitly builds the confidence level advancement of 'India Post' is expected to
that the retailer is not just acting to positively affect the e-commerce industry.
sell its products but is making a sincere The Digital India Project aims at offering a
attempt to build direct relationship one-stop shop for all government activities
with its customer. and will have the mobile phone as the back
 Fraud Protection: An online retailer bone of all functions. This program is
should setup suitable security expected to give a robust lift to the e-
certificates to deal with the commerce sector as the initiation of
transactions related to checkouts and internet and broadband to distant corners
the private information about of the country will increase customer
customers and payment details should awareness as a result online trade will rise.
be stored in coded format. A customer The government is also enthusiastic to
will feel more comfortable if they will develop its own distribution channel for
be charged after their order ships. So, it India Post and other services related to
will be beneficial for the retailers to ecommerce since India Post transaction
reflect the amount of payment at the business valued 280 crore INR in the CoD
time of order but charge the card only segment for e-commerce firms such as
when the order ships. Flipkart, Snapdeal and Amazon. Both the
 Inclusion of M-Commerce: Currently, two projects are expected to have
e-commerce uses PCs and browser- considerable affect on increasing the access
based interface but in the near future, of e-commerce players to generally non-
it is expected that smart phones will accessible areas, thereby boasting the e-
rule the online transactions owing to commerce growth.
the increasing sales of smart phones.
So, it will be beneficial for the e- Remarking upon the solutions for the
commerce vendors to develop easy to problems faced by the Indian e-commerce
use mobile apps if they want to industry, K S Bhatia, The Founder & CEO
increase the reach of their website. Pumpkart.com said at RMAI Rural
 Omnichannel Retailing: Omnichannel Conclave 2015, “We need a strong
or multichannel retailing means the presence of government with a partnership
use of more than one channel of of private for better logistics development
in the country. We need to work together Limitations Of The Study

as partners in the process of development
not just for the businesses but also for the This study is based on the facts and figures
rural areas of the country that will benefit collected through various secondary sources
from our presence.” like newspaper reports, articles and
journals. The measures suggested above to
9. Conclusion out stretch the reach of ecommerce
activities in India are based on the analysis
Ecommerce is the future of shopping in of recent trends followed by other countries
India. It would be apt to quote William to extend their online activities. There is a
Gibson's line,”The future is here. It's just possibility that these suggestive measures
not widely distributed yet.” The Internet might not prove relevant in Indian context.
economy will continue to grow robustly;
internet users would buy more products and Scope For Further Research
more frequently online: both new and
established companies will reap profits from This research is descriptive in nature,
it. hence, few strategies are suggested here to
help ecommerce companies flourish to its
Online shopping has great potential in fullest potential. There is a need for further
India. This holds true especially when real researches to prove the relevance of these
estate costs are sky rocketing, more and strategies for the growth of ecommerce in
more websites are being launched on daily India.
basis offering various products and services.
This coupled with favourable demographic 10. References
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“No one has ever made himself great by showing how small someone else is”
Irvin Himmel
“The human spirit needs places where nature has not been rearranged by
the hand of man.”
“The human spirit is stronger than anything that can happen to it.”
“Exploration is really the essence of the human spirit.”
“Difficulties are meant to rouse not discourage the human spirit.

Is to grow strong by conflict.”
Man never made any material as resilient as the human spirit.
Annonymous
RESEARCH
Digitalization & Customer Perception towards

the Banking Services
Deepa Joshi* & Sapna Parihar**

ABSTRACT
All banking transaction from home without visiting and spending time in queues and all the services are
available for 24x7 are the main attraction of the e banking system. Even after catering so many facilities
the customer perception differ in service quality issues. The present study reveals the customer perception
towards the service quality in e-banking facilities. Respondent were asked to responsed on various service
quality dimensions such as privacy, transparency, reliability, technical difficulty, ease of transaction
etc. the data has been collected through a self designed questionnaire from 100 respondents and analyzed
through chi-square test. The results show that e-services ensure privacy, service quality, conveniently
transfer the information within the bank, increase the service and also cheaper than the manual service.
On the other hand customers also believe that digitalization creates the issues of accuracy, threats of
losing information and technical problem while transactions.
KEYWORDS : E- banking, Service, Digitalization, Transaction
Conceptual Framework queries on their account balances and

submit instructions to the bank and also
In the era of digitalization, the life of electronically transfer funds to their
human being has become faster. It has accounts, pay bill, and conduct other
emerged as strategic resource for efficiency, banking transaction online (Afrouz,
improved productivity and faster the Firouzeh, 2006). It relies greatly on
frequency of operations. Banking sector and information and communication
financial sector has not been untouched technology (ICT) to attain its promise for
from digitalization. The traditional process 24 hours availability and faster delivery of
of banking transaction has been changed. financial services. Ultimately the
People do not need to visit banks for emergence of digitalization reduces the
deposit or withdraw every time. All the manual operational work of bank's
banking facilities are on tip. The money employee increase the work efficiency and
transaction in business has become faster, also save the time of bank customer.
which results in the expansion of business
and economic growth. Various e-banking Progression of E-Banking
services ease the process of online shopping.
It also allow customers to submit their The evolution of e-banking has started in
applications for different services, make UK and USA in 1920's and notably popular
*Deepa Joshi, Associate Professor, Shri Vaishnav Institute of Management, Indore

Email: Drdeepa22@rediffmail.com
**Sapna Parihar, Assistant Professor, Shri Vaishnav Institute of Management, Indore
Email: Sapna.solanki594@gmail.com
Digitalization & Customer Perception towards the Banking Services
in 1960's. The concept of web banking cashless economy there is a strong need to
came into existence in 1980's. E-banking understand the opinion and perspective of
system is fairly new development in India. the customer toward the e-banking services
The credit on launching e banking services such as service quality, risk, information,
in India goes to private sector banks such as reliability and educate about the technical
ICICI Bank, HDFC Bank and City Bank. aspects of the system. The present study is
Later on Government of India and RBI an attempt to know the opinion and
have also taken so many measures for the perspective of the customer toward the e-
infrastructural development of the banking banking services.
system.
Review of Literature
E- Banking services facilitates ATM,
Internet banking, mobile banking, Dr. Richard Nyangosi, Dr. Samuel
electronic clearance service, Electronic N. Nyangau, Dr. Kennedy O. Nyariki,
fund transfer and many more. Complete all Dr. Andrew S. Nyangau (2104) explored
banking transaction from home without that internet and mobile technologies
visiting and spending time in queues and all gained momentum in recent years and are
the services are available for 24x7 are the influencing the working of every process
main attraction of the e banking system including financial services. Financial
although there is still a larger portion of the service providers including banks are
country, specially the rural India where the turning toward the technologies. In the
traditional methods of banking services are essence it has been made obligatory by
being used. situations and conditions in the market that
they should be adopted to meet customer
Government on the verge of Cashless demands.
Economy
Joseph et al. (1999) examined the influence
On November 8, 2016 the government of of internet on transactions. In this regard,
India has taken a crucial decision of ceasing banks are going to utilize the delivery of
the usage of all 500 and 1,000 banknotes of banking services. They found six primary
Mahatma Gandhi Series on the internet facility for customer's transactions.
recommendation of the Reserve Bank of The dimensions of e-banking service
India (RBI). The term of ceasing the quality such as reduce paper work, and will
currency as legal tender is known as give quick response to customer
demonetization. Demonetization is the act convenience and accuracy, feedback and
of stripping a currency unit of its status as complaint while they remain in their office
legal tender. The decision was taken to or at home. The financial management,
cater some prime objectives such as remove efficiency, queue management, accessibility
black money from the system, terrorist services industry was one of the first to
funding, reduce corruption, and cashless recognize the and customization.
economy. The present government is
strongly in the opinion to have complete Mathivanan and Kavitha(2015) revealed
cashless transaction in the country or the that Internet banking enables a customer to
complete use of e banking system for any perform banking transactions through the
kind financial transactions. To go for bank's website. This is also called virtual
banking or anywhere banking. It is like Objectives

bringing of the bank to one's computer at
the place and time of one's choice. This can 1. To reveal the customer's view point
be very useful, especially for banking towards the e banking services
outside bank hours through internet access. 2. To study the growth and progress of
The number of customers who choose electronic banking.
online banking as their banking usually
offers features like electronic bill payment. Research Method
There are a growing number of banks that
operate exclusively online due to cost The study was conducted in various stages.
advantage compared to traditional banks. In the first stage various journal, magazine
and articles were reviewed to get the in
Kumbhar (2011) evaluates major factors depth knowledge of the context. In order to
(i.e. service quality, brand perception and get the idea about the service quality in
perceived value) affecting on customers' banking sector various service quality scales
satisfaction in e-banking service settings. was reviewed. On the basis of the
The study also evaluates influence of parameters of service quality scale a self
service quality on brand perception, design questionnaire was prepared for the
perceived value and satisfaction in e- banking sector. Convenient sampling was
banking. Security/Assurance, used and the sample respondents were asked
Responsiveness, Easy to Use, Cost to give the response on various items. The
Effectiveness and Compensation are data was collected through 100 respondents
predictors of brand perception in e-banking and non-parametric chi-square test was
and Fulfillment, Efficiency, used to analyze the data.
Security/Assurance, Responsiveness,
Convenience, Cost Effectiveness, Problem Hypotheses
Handling and Compensation are predictors
of perceived value in e-banking. H01 There is no association between the
Digitalization of bank and the service
Lal and Saluja (2012) conclude that In quality in terms of privacy.
India, E-banking is in an emerging stage. H02 There is no association between the
Indian banks are making genuine efforts for Digitalization of bank and the service
the implementation of advanced quality in terms of transparency.
technology and installation of e delivery H03 There is no association between the
channels but still masses are suspicious of Digitalization of bank and the
the concept. Banks are making sincere confusion in performing the
efforts to popularize the e-banking services transactions.
and products. Younger generation is H04 There is no association between the
beginning to see the convenience and Digitalization of bank and the
benefits if e-banking. In years to come, e- improved service quality.
banking will not only be acceptable mode H05 There is no association between the
of banking but will be preferred mode of Digitalization of bank and the
banking. physical efforts of bank employees.
H06 There is no association between the
Digitalization of bank and H011 There is no association between the

convenient transfer of information Digitalization of bank and faster
within bank. means of communication between
H07 There is no association between the bank and customer
Digitalization of bank and easier H012 There is no association between the
access of accounts of customer. Digitalization of bank and the
H08 There is no association between the reliability in bank transactions.
Digitalization of bank and accuracy H013 There is no association between the
of online information. Digitalization of bank and online
H09 There is no association between the payments technical problem for
Digitalization of bank and the customers.
service efficiency through IT. H014 There is no association between the
H010 There is no association between the Digitalization of bank and the cost
Digitalization of bank and threats of associated with transactions.
loosing information.
Results and Interpretation

Table 1: IT does not ensure privacy
Asymp.
Observed Expected Residual Chi-Square DF Sig
Yes 39 50 -11 4.84 1 0.028*
No 61 50 11
Total 100
-
Table 1 shows that the chi-square value is 4.84 with p value (.028 <.05) which revealed that
people are significantly more likely to prefer that digitalization in banks ensures the privacy
in banking transactions.
Table 2: IT ensures more transparency

Asymp.
Yes 23 50 -27 29.16 1 0.00*
No 77 50 27
Total 100
Table 2 shows that the chi-square value is 29.16 with p value (0.00<.05) which revealed that
people are significantly more likely to prefer that digitalization in banks do not ensures more
transparency in banking transactions.
Table 3: IT creates more confusion

Asymp.
Yes 29 50 -21 17.64 1 0.00*
No 71 50 21
Total 100
people are significantly more likely to prefer that digitalization in banks do not create
confusion in banking transactions.
Table 4: IT improves service quality

Asymp.
Yes 88 50 38 57.76 1 0.00*
No 12 50 -38
Total 100
people are significantly more likely to prefer that digitalization in banks improve the service
quality.
Table 5: IT reduces the physical efforts of employee

Asymp.
Yes 71 50 21 25 1 0.00*
No 29 50 -21
Total 100
people are significantly more likely to prefer that digitalization in banks reduces the physical
effort and the manual work of bank employees.
Table 6: IT made convenient transfer of information within bank

Asymp.
Yes 94 50 44 77.44 1 0.00*
No 6 50 -44
Total 100
Table 6 shows that the chi-square value is 77.44 with p value (0.00 <.05) which revealed
that people are significantly more likely to prefer that digitalization in banks made
convenient transfer of information within bank.
Table 7: IT made easier access of accounts of customer

Asymp.
Yes 95 50 45 81 1 0.00*
No 5 50 -45
Total 100
that people are significantly more likely to prefer that digitalization in banks made easy
access of bank accounts.
Table 8: Online information is always accurate

Asymp.
Yes 29 50 -21 17.6 1 0.00*
No 71 50 21
Total 100
that people are significantly more likely to prefer that online information is not always be
accurate.
Table 9: Service efficiency increased through IT

Asymp.
Yes 90 50 40 64 1 0.00*
No 10 50 -40
Total 100
Table 9 shows that the chi-square value is 64 with p value (0.00 <.05) which revealed that
people are significantly more likely to prefer that digitalization in banking sector increased
service efficiency.
Table 10: Threats of losing information increased through IT

Asymp.
Yes 79 50 29 33.64 1 0.00*
No 21 50 -29
Total 100
that people are significantly more likely to prefer that digitalization in banking sector
increased the threatsof loosing information.
Table 11 : IT provides faster means of communication between bank and customer

Observed Expected Residual Chi-Square DF Asymp. Sig
Yes 93 50 43 73.96 1 0.00*
No 7 50 -43
Total 100
provides faster means of communication between bank and customer.
Table 12 : Information provided is always reliable

Yes 51 50 1 6.46 1 0.072
No 49 50 -1
Total 100
Table 12 shows that the chi-square value is 6.46 with p value (0.07 >.05) which revealed
that people are insignificant about the reliability of the information after the digitalization of
banking sector.
Table 13: Online payments create technical problem for customer

Yes 68 50 18 12.96 1 0.00*
No 32 50 -18
Total 100
that people are significantly more likely to prefer that digitalization in banking sector and
online payments create technical problems for customers.
Table 14: IT services are cheaper than manual services

Yes 89 50 39 60.84 1 0.00*
No 11 50 -39
Total 100
decreased the cost as compare to manual services.
Conclusion In the current scenario where the

government is also putting efforts and
The present study concludes that Indian trying to become cashless economy there is
customers accept the digitalization of a strong need to educate people about the e
banking sector. The e-services provided by banking services and establishing the full
banks ensure privacy, improve the service proof protected banking system to reduced
quality, conveniently transfer the the risk. So that the possibility of fraud can
information within the bank, easily access be reduce and people can freely enjoy
of account, increase the service efficiency of digitalization.
employees and also cheaper than the
manual service as it saves time and can be References
performed at any given time. On the other
hand customers also believe that  B. Mathivanan, S. Kavitha (November,
digitalization in banking sector creates the 2015). A Study on Consumer
issues of accuracy, threats of loosing Perception towards E-Banking Services
information and technical problem while of ICICI Bank. International Journal of
transactions. By and large people are Innovative, Research and Development,
enjoying the electronic services provided by 4(12). 26-34.
bank such online payment transfer, e wallet  Nyangosi. et.al. (2014). Digitizing
etc. The manual work has also been Banking Services: An Empirical
reduced which increased the service Analysis of Customer's Adoption and
efficiency of the bank employers. But still Usage. Research Journal of Finance and
due to lack of fully protected e-banking Accounting, 5(8).
system, customer perceives the higher risk  Lal, R.,Saluja R. (2012). E-Banking:
of losing the information, technical The Indian Scenario. Asia Pacific
problem while transferring and reliability Journal of Marketing & Management
issues. With the rise in smart phones users Review, 1 (4), 16–25.
and more digitally savvy populations, banks  Kumbhar . M. (2011). Factors affecting
have been striving to get a larger share of the customer satisfaction in e-banking:
the customer's digital wallet. However, in some evidences form Indian banks,
this process, the banking applications by Management Research and Practice,
lenders are becoming increasingly 13(4), 1-14.
vulnerable to risks such as phishing,  Afrouz, Firouzeh. (2006). Banks
identity theft, card skimming, etc. The employees' perception toward
most common types of frauds in the implementation of e-banking in Iran :a
banking sector as of now includes identity comparative study among governmental
thefts, internet banking related frauds such and private banks”, Ph.D thesis, Lulea
as hacking and online fraud, siphoning of University of Technology, 2006
funds by taking the customer's data etc.  Joseph et al. (1999). Service quality in
However, banks assure that transacting via the banking sector. International
the mobile phones or on the internet are Journal of Bank Marketing, 17, 182-191.
secure and necessarily require a two-factor
authentication.
RESEARCH
Innovative Practices In Marketing
Shivakumar Upavasi*
ABSTRACT
As marketing companies practice traditional marketing techniques of product Life cycle, market
segmentation and marketing mixes to market their products resulting into the failure of a lot of new
products among consumer sovereign markets. The following article focuses on such innovative
applications of products life cycle that can generate empirical evidences followed by the quantitative
methods in the proposed models. This study aims to create the new markets for new products rather than
products battling with the substitutes in a saturated market. The learning curve applications are used
effectively to check the sales growth respective of the phases changing in the process of the Product Life
Cycle. Further continued the research paper directs the marketing companies to change their views about
the traditional methods of marketing. Decision Sciences is one of the better areas where a lot of research
has to be carried out for studying the consumer behavior.
KEYWORDS: Customer, Marketing, Products, Substitutes, Phases
Introduction products both online and offline. New

promotion strategies have been adopted to
In all spheres of life, marketing plays a vital launch new products and various
role in reaching out consumer aspirations techniques are in use to collect the
followed by their needs, wants and feedback of the products. Apart from all
demands. As civilized societies need these efforts the marketing companies fail
standard products that are affordable in in matching consumer's proposed values in
buying a value for an exchange has created a desirable product and hence markets seem
a huge demand in standardization and to be saturated lacking opportunities for a
adaption of existing products as well as new new product. The following article will be
products. Global Corporate giants have put representing two models of products A & B
a lot of money for searching new markets to and in both models the targeted markets as
markets their products in diverse cultures of well as the new customers represent the
consumer community. Due to highly marketing opportunities of the product
innovative communication strategies it has promoter.
become very easy to reach out customers on
a large scale. As marketing distributive Learning curve applications are applied to
channels provide a greater exposure to sales study the product life cycle related to
it has helped the marketers to display their opportunities in a new market.
*Shivakumar Upavasi, Guest Faculty (Department of PG Studies in Commerce, SKNG Govt First Grade College,
Gangavathi, Karnataka, India)
Email: supavasi1234@gmail.com
T.P. Wright of Curtiss Buffelo, USA, that the slow change in the different
introduced the theory of learning curve. phases of the life cycle will certainly
When the production quantity of a given affect the sales market.
item is doubled the cost of that item 3. To prove that opportunities for a
decreases at a constant rate. Theory of promoter only exist where the new
learning curve has been formulated on the customers do exist.
basis of this formula. [The Institute of
Chartered Accountants of India].The Methodology
applications are more effective for studying
cost of production at a large scale such as In the following article the two models are
manufacturing of Helicopters, FMCG, used and two products A and B
Heavy Vehicles etc. representing specific markets are described
to understand the applications of the
The learning curve theory is applied for learning curve effectively related to PLC.
studying the product life cycle phases of a Other sources are academic books, notes
new product launched respective of the and journals are used for reference.
targeted customers and new customers of a
product in this article. Every product has Product-A
four major phases when it is launched in the
market. The beginning stage is called Following are the Assumptions in a
product development stage which is prior to consumer market.
launching the product in a targeted market. 1) Let us assume that the life span of a
product is 100 months and production
1) Introduction - The product's first launch will double after each phase in the PLC.
in the market and it is made available for 2) The (X) production is multiplied with
customers to buy at their convenience. the life span (Y) which results into (XY)
2) Growth - This stage focuses on to the targeted customers and the
increase its market share because as difference between two consecutive
already the product is known to the targeted customers (Z) is the new
customers. customers who represent new
3) Maturity - At this stage the product sales opportunities.
are at peak and substitutes enter the 3) The difference between two consecutive
market. phases of the customer targeted
4) Decline - In marketing philosophy customers represents the new customers
“Every product has to die one day” and
this stage predicts the replacement of this Hypothesis: If a product takes a long time
product by new product. to change from one phase to another phase
of a product life cycle then it is marketed
Objectives into a saturated market and if no new
customers exist for a product that indicates
1. To study technical aspects in a saturated the lack of opportunities.
market by applying the applications of
the Learning Curve Theory.
2. To generate empirical evidences to prove
Table A .1 Readings of the Learning curve theory applied for studying the product life cycle
Phases of a Production in Life span in Customers in a New Customers

product life lots months targeted
cycle 1 lot = 10 units 50% market (Z)
(X) decreasing (XY)
(Y)
Introduction 10 100 1000 -
Growth 20 50 1000 -
Maturity 40 25 1000 -
Decline 80 12.5 1000 -
A.2 Graph representing the readings of table A.1

Y
100
80
60
40
20
X
10 20 30 40 50 60 70 80
Scale
X- axis- units produced (lots)
Y-axis- life spam in months
Findings
2) The steady-state phase (no learning
1) If there are no new customers for a curve effect) indicates the operation
product the product is marketed in a will stabilize failing to identify new
saturated market. customers and create new markets
when production crosses 80units. Product-B

3) As the life span decreases the product
will vanish from the market. Assumptions
4) Targeted customers represent the 1) Let us assume that the life span of a
market size and the new customers product is 100 months and production
create new market for a product will double each phase.
2) The production (X) is multiplied with
Limitations the life span (Y) which results into
(XY) the targeted customers and (Z)
1) Sales are important for marketing new customers.
operations and the model do not 3) The difference between customers of
provide the number of units sold two phases represents (z) the new
proportionate to the customers. customers of the market
2) Finding new customers may not be
possible for every new product Hypothesis: If a product takes a short time
launched in the market. to change the phases of a product life cycle
3) The scope of the research defends the then the product is marketed into
pertaining case only. opportunities market and the number of
new customers indicates the new
opportunities.
Table B.1Readings of the Learning curve theory applied for studying product life cycle
Phases of Production in Life span in Customers in New

product life lots months a targeted Customers
cycle 1 lot =10 units (Y) 75% market (Z)
(X) decreasing (XY)
Introduction 10 100 1000 -
Growth 20 75 1500 500
Maturity 40 56.25 2250 750
Decline 80 42.19 3375 1125
B.2 Graph representing the readings of table B.1

Y
100
80
60
40
Scale
20
X- axis- units produced ( lots)
X Y-axis- life span in months
10 20 30 40 50 60 70 80
Findings 2) Customers may be the potential

customers
1) If there are new customers for a product 3) The scope of the research defends the
it indicates new markets and new pertaining case only.
opportunities.
2) If a product takes short time to change Other applications of the learning curve.
from phase to phase the product is not
marketed into a saturated market. 1) Calculate the targeted customers for
30 lots of production if 75% is the
Limitations decreasing rate of life span of the
product.
1) Exact sales cannot be determined.
Y= ax-b
a =1000 (targeted customers in the beginning)
x = 3 (cumulative serial no of the quantity produced)
b = logarithm of rate of life span 75%

Logarithm of 2
= Ln 0.75
Ln 2
= -0.2876
0.6931
= -0.4149
a = 1000, b = -0.4149
y = ax-b
log y = log (ax-b)
= log a – b x log x
= log 1000-b x log 3(cumulative serial no of the quantity produced)
= 3-0.4149 x 0.14771
= 3-0.1979
= 2.8020, Antilog of (2.8020)
= 634.0 per l0 lots (1 lot =63.40)
=63.40 x 30 lots
1902 are the targeted customers (XY) for PLC needs a few changes and a lot of
the production of 30 units research work has to be carried out to
match the present scenario.
Discussion: The article's sole objective was
to study the products life cycles using the Suggested readings:
applications of the learning curve in order
to pursue research in case of products are The product life cycle- buried or resurrected
marketed in a saturated market. As the by the diffusion literature-Dr. Paul Steffins
results analyzed are more effective to prove
that the new opportunities exist only when Reference:
new customers enter into the market. Even
though marketing companies adopt The Institute of Charted Accountants of
segmentation, PLC, mixes etc. it is not easy India-Notes
to get through the competitive markets.
Marketing Mechanics –text- Shivakumar
The global markets are rapidly changing
Upavasi
due to technical aspects, the traditional
QUOTES
“There is something in the human spirit that will survive and prevail,
there is a tiny and brilliant light burning in the heart of man that
will not go out no matter how dark the world becomes.”
Leo Tolstoy
“Poverty is mean and degrading to the human spirit, whereas a life of conscious
simplicity can have both a beauty and a functional integrity that elevate the human
spirit.”
Duane Elgin
“Exploration is really the essence of the human spirit.”
Frank Borman
“Simplicity is the glory of expression.”
Walt Whitman
YOUNG MINDS
IOT - A Platform to Manage Crowd and Queues
Aniket P. Bhisikar*
ABSTRACT
The article explains the journey of the Global Citizen Leadership Project and the opportunities explored
while working on it, executed by Team PAPAPS batch: 2015-17. Ultimate goal is to define a hidden
opportunity which could be explored if IOT is introduced in our day to day lives. Introduction to the IOT
with a simple example, which will relate readers to understand the subject in a crisp fashion. Facts and
figures which describes the expansion of IOT in the future. Critical thinking when brought into working
of an idea could be transformed into a business and how the ideas can help the nation develop
simultaneously. The project journey went through different phases with due engagement of the
stakeholders. The readers will get an idea of how a project could be transformed from a small idea to a
completely different platform.
KEYWORDS: IoT, Crowd and Queues, Data Analysis, Public Places
Internet of Things or IOT is an emerging unique Id to the respective objects or things

trend that will move the world to make it a we desire to connect. Putting senses to
better place to live. Best Quoted as, “The these objects like sight, smell, hearing,
IOT, where the web and the physical world touch and taste, with multiple embedded
will meet.” – Dr. John Barret. electronic circuits readily available. This
could be achieved by very low cost
The IOT is a network of some physical hardware, high availability of resources, low
things which are connected to the internet level of difficulty to compile them and
to send or receive or exchange the data. A highly digital and connected environment.
simplest example could be, an electronic
system that notifies authorities when a fire According to a McKinsey report, Foreseeing
extinguisher is missing from its designated the success of IOT, it can make an
location or when its pressure falls below safe economic impact of around 4USD trillion
operating levels. Alerts can be sent directly to 11 USD trillion, which is about 11% of
through an instant email, phone call or a world economy, IOT by 2025 will be an
SMS notification to proper agencies and integral part of Humans, Healthcare,
supervisors. Figure 1: Manufacturing, Vehicles, Factories,
Buildings, Offices, Worksites, Cities, etc.
This could be simply achieved by creating a
*Aniket P. Bhisikar, a student of PGDM – Business Design (2015-2017) S. P. Mandali’s Prin. L. N. Welingkar Institute
of Management Development & Research Email: apbhisikar@gmail.com
Note: This was his Global Citizen Leadership project with his team members - Ankur Parswani, Pratik Chichani, Pratik Varade,
Priyal Shah & Shersingh Saud. Faculty Guides: Prof. Dr. Kaustubh Dhargalkar & Prof. Dr. Pradeep Pendse.
Industry Guide: Mr. Rohit Nalavde, Keeptrack Solutions
Given a chance few months back, me and However, penetration of this subject in
my team PAPAPS was working on an India is not yet prevalent, few reasons for
academic project to study Elevators in the this could be the knowledge and skills
Vertical Transportation space, find an area required to handle this, cost of training,
of improvement in it and to use IOT in traditional way of approach to every step in
order to make those improvements possible. any kind of industry or household purpose,
Problem Statement being, “To reduce etc.
traffic congestion and waiting time of
elevators for a user along with significant Revealing the opportunity behind this to
reduction in the working time of elevators.” reduce the crowd and queues:
With due Primary Research and generating At Shopping Malls: Smart Carts to allow
insights through interaction with the shoppers to buy goods faster and pay with
stakeholders, we revised the Problem digital medium; Deliver in - store offers and
Statement to, “To create a common e-catalogues; guide visitors the floor plans,
platform to solve the issues related to events, deals to generate traffic and
Occupancy Sensing, Weight Sensing and revenue; Evacuation Plan in case of
Maintenance issues with the help of IOT. emergency.
We broadened our scope to Occupancy
Sensing for – Meeting/ Discussion Rooms, At Restaurants: Create a link between the
Classrooms, Washrooms, Hotel Rooms, chain of restaurants to guide the customers
Elevators, Parking Lots, Cabs, etc. to other restaurants in the chain to avoid
waiting; Attract customers with new offers
Weight Sensing for – Personal weighing and promotions.
machines, Cranes, Trucks and Goods
Carriers. Maintenance Platform for – At Railway/Metro Stations: Display on
Elevators, Cranes, Pulleys, Car Lifts, Platforms showing density of people in
Conveyer Belts, Rollercoasters, Escalators, particular coaches of the arriving train,
Ramps, etc. which will help passengers to divert
themselves to board in less crowded
Realizing the project is ultimately for coaches.
people or the crowd and the interaction
with the stakeholders led us to change the At Public Spots: Provide mobile or virtual
problem statement to, “To create a tour to guide people and avoid crowding;
common platform for Crowd and Queue Help tourists to explore heritage places;
Management,” using IOT technologies like Track people at particular places or spots.
Bluetooth Low Energy Beacon, Proximity, Tracking Data at various locations will add
etc. to bring together all the stakeholders to up to Big Data and this is where the IOT
avoid Crowd and Queue. To implement plays an important role:
this technology or platform, Railway
Stations, Residential Buildings, Institutes,  Track customer location, change and
Worksites, Hotel Chains, Airports, manage their buying behaviors, track
Shopping Malls, Temples, Concerts, other quantity of specific products required
public places, etc. are the appropriate monthly or annually, this will change
choices. the perspective of brands to Market
and advertise a product to an  In case of emergencies, devices could

individual. send direct alarms to Hospitals, Police,
 Time spent by customers at hotels, Fire Brigades, etc.
frequency at which people visit hotels,
track customer's food preference data This will simultaneously help Indian
or eating behavior can help Restaurant Government with Digital India, Swachh
Owners. and Swasth Bharat, to create Smart Cities
 Data about the devotees visiting for smarter people of India. Also imagine
religious place could be helpful to the business potential of these ideas when
Indian Railways and Management brought into reality. This will lead to an
trusts of the respective Religious or open space for Idea Generators to innovate
Pilgrimage Places. from time to time, develop IOT integrated
 Improvised data for Safer smart cities to save on Electricity, Water
Constructions of Buildings. and other useful resources and gradually
 Ticket Vending machines enabled come back to a Safer, Healthy and
with IOT will help to track travel Cherished Life.
patterns of various people, rush hour
frequency of people, etc.
Figure 1: Describing Example of Fire Extinguisher.
References:  https://www.youtube.com/watch?v=
mzy84Vb_Gxk
 http://www.mckinsey.com/business-  https://www.postscapes.com/internet-of-
functions/digital-mckinsey/our- things-examples/
insights/the-internet-of-  http://www.businessinsider.com/internet-
things-the-value-of-digitizing-the- of-things-devices-applications-examples-
physical-world 2016-8?IR=T
 https:// www. youtube.com/ watch? v=
QaTIt1C5R-M-
QUOTES
“The human spirit is indomitable no one can ever say you must not run faster than this
or jump higher than that. There will never be a time when the human spirit will not be
able to better existing records.”
Roger Bannister
“Never underestimate the power of dreams and the influence of the human spirits.”
Wilma Rudolph
“The human spirit will not invest itself in a compromise”
Robert Fritz
“It is possible for the human spirit to win after all ”
Jack Kerouac
“Belief in oneself and knowing who you are – that's the foundation of everything great”
Jay-Z
“Enjoyment is an incredible energizer to the human spirit.”
John C. Maxwell
“Man never made any material as resilient as the human spirit.”
Bernard Williams
RESEARCH COMMUNICATION
Data Analytics
Sumeet Manerikar*
It is the science of examining raw data with Companies use Data analytics to make data
the purpose of drawing conclusions about driven decisions. The insights gained by
that information. It involves applying a DA enable these companies to optimize and
mechanical process or algorithm to derive automate their business processes. In fact,
insights. For instance, running through a data driven companies that use data
number of data sets to look for meaningful analytics achieve a competitive advantage
correlation. because they are able to:
Data Analytics is needed in Business to ∙Conduct data mining (explore data to find
Consumer applications (B2C). new patterns and relationships)
Organizations collect data that they have  Complete statistical analysis and data
gathered from customers, businesses, analysis to explain why certain results
economy and practical experience. Data is occur.
then processed after gathering and is  Test previous decisions using A/B
categorized as per the requirement and testing and multivariate testing
analysis is done to study purchase patterns  Make use of predictive modeling and
and relations between each other. predictive testing to forecast future

B2B marketing is also benefiting from many results
of the same automation and analytic
technologies and techniques being used in Data Analytics provide support for
consumer marketing, but applied to a much companies in the process of making
smaller range of targets and in a one-to-one proactive tactical decisions, and Data
fashion that many consumer marketers Analytics makes it possible for those
might only dream of. companies to automate decision making in
order to support real time responses.
*Prof. Sumeet Manerikar is Associate Professor - S. P. Mandali’s Prin. L.N. Welingkar Institute of Management
Development and Research, Mumbai
Email: sumeet.manerikar@welingkar.org
BOOK SUMMARY
Title : The Design Journey of Prof. Sudhakar Nadkarni
Author : Prof. Mandar Rane
Publisher : Self Published
Pages : 96 pages
Price : Rs 500/- Available on Amazon.in
From painting cinema hoardings, decorating Ganeshas and designing press layouts to nurturing a
design culture through education in India
The journey of Prof Sudhakar Nadkarni, the maverick design thinker and the Founder-Guru of
democratic design culture through IDC and WeSchool unraveled in his biography …
2017,Mumbai: As IDC is about to enter the 50th year of its glorious existence setting many milestones on
the way, the book titled ' The Design Journey of Prof Sudhakar Nadkarni ' is indeed a fitting tribute to the
indomitable spirit of Prof. Sudhakar Nadkarni. The book describes the troubles and triumphs during the
life and times of the visionary Nadkarni as he became the game changer not only in establishing design
education but design thinking philosophy in India. Going beyond personal achievement and glory, he
had the vision to open the avenues of this unique stream of education to Indian youth through the
Masters degree in Product design and Communication Design at the Indian Design center - IDC ( IIT,
Bombay ) as early as in 1969 , later founding Department of Design, (IIT Guwahati, 1997) ,followed by a
two year, full time MBA program in Business Design at S.P.Mandali's Prin. L.N. Welingkar Institute of
Management (WeSchool), Mumbai, 2003), thereby establishing design and design thinking firmly on
Indian soil. This book written in a dialogue form is sure to remind the discerning readers of the
peripatetic dialogue by Plato and Aristotle, as they are indeed a culmination of various discussions
between Prof. Nadkarni and Prof. Mandar Rane, alumnus and currently faculty at IDC, IIT Bombay who
interviewed him.
In this book, Prof. Nadkarni comes across as a very committed academician, administrator, designer,
businessman, loving patriarch and a much adored friend but above all he comes across as a visionary with
the heart of a social activist, fired with dynamism, passion and determination to contribute to the progress
and development of the multitudes through all his efforts by enhancing design and design thinking
education in India. The dream seen by Prof. Nadkarni to make design and design education, important
forces in fulfilling the national agenda and becoming contributors to the development of the deprived
and downtrodden Indian masses is yet to be fulfilled; the journey is far from over.
The book chronicling the life journey of a great visionary is painstakingly put together by Prof. Mandar
Rane and his team. It was launched on the occasion of IDC’s Alumni meet at the department of Industrial
Design Centre, (IDC) Auditorium, IIT Bombay Campus, Powai on Sunday 11th June.
Prof. Sudhakar Nadkarni, S.P. Mandali's Prin. L.N. Welingkar Institute

of Management Development & Research, Mumbai.
Email: sudhakar.nadkarni@welingkar.org, snadkarni36@gmail.com
BOOK REVIEW
Title : Born To Fly
Author : Nitin Sathe
Publisher : Vitasta Publishing Pvt Ltd
Pages : 250 pages
Price : Rs 279/-
This is a must read motivational book for everyone- friends with spinal cord injury and their families
especially. ‘Born to fly’ brings to life the story of an exceptional human being, a Fighter Pilot MP Anil
Kumar (MP). Air Commodore Nitin Sathe, has poured his heart, mind and soul into researching every
aspect of MPs life and written this story before and after his motor cycle accident in such an evocative
fashion that one can visualize each and every incident unfolding right in front of our eyes. The author and
MP trained at NDA (National Defence Academy) though were not friends then . Post MP’s accident the
author spent hours with him during his holidays in Pune and bonded closely as friends.
The book traces MP Anil Kumar’s life as a child, as a MiG21 pilot in IAF (Indian Air Force) to a motor
cycle accident in 1988 at a young age of 24 years only and becoming a quadriplegic-paralyzed neck down.
He created a meaningful second life as a writer, and media commentator. In fact his first mouth essay
‘Airborne to Chairborne’ is included in school curricula, encouraging children to face all adversities
without losing hope. As the author states in his profile “MP never got tired despite his disability”. His
mantra for survival kept him going. His life was about grit, determination and will power of the highest
order. His zest for life should be the guiding light for many of his situation and in fact for us all, able and
disabled. His never-say-die attitude enabled MP to lead a productive life.” MP died two weeks after
celebrating his 50th birthday in style in the ICU because of cancer. Reading his life story taking hairpin
twists and turns, with summersaults, we quietly wish that he was still amongst us. A rare human being full
of positive energy and optimism.
Role of professional counseling, love and care is highlighted rightfully. 'Sarah', a sweet nurse, who went
beyond her call of duty, like a magician put a smile and spark of life back into MP. They became close and
love blossomed, spending her duty and off duty hours sharing and conversing. She chatted, spoke, loved
and cared. This gave MP the mantra to live moment to moment. He realized mind-control, was the key to
survival.
Another lady ‘Josie’ suggested Anil start writing with his mouth. This started his journey as a writer par
excellence.
I had been fortunate to see and meet MP, just a year post my paragliding accident and spinal cord injury in
1996, when Dr V. C. Jacob (my physiotherapist) and my late sister Dr Nina Doshi took me to PRC, Pune.
Whoever reads this wonderful book would say “I wish I had seen him alive.” Well I was fortunate to meet
him!!
His photographs, his hand and mouth written letters, and his newspaper articles included in the book add
a visual dimension to MP's life. This is a special charm of the book.
I recommend this book be translated in several Indian languages and circulated widely in schools,
colleges, companies as it will give a booster dose of inspiration to all.
Reviewed by: Dr Ketna L Mehta, Editor & Management Advisor,

S.P. Mandali's Prin. L.N. Welingkar Institute of Management Development & Research, Mumbai, and
Founder Trustee, Nina Foundation. Email: ketna.mehta@welingkar.org
BOOK REVIEW
Title : Making IT Big
The Inspiring Story of Nepal's Billionaire in his own words
Author : Binod Choudhary (Autobiography)
Publisher : Penguin
Pages : 411 pages
Price : Rs 399/-
A fiction can be written in multiple ways, but when you pen down a reality you know it is only one way, the way it
happened. Narrating a reality requires you to follow rules – no tweaking, no hiding, no super hero and no fantasy, but you
have one option and that is customization. It is like plucking flowers from a garden only to make a new bouquet which
again is a complete whole. This is a tale of his journey to becoming a billionaire.
Hailing from an Indian Marwari family involved in trade for decades, business was in his blood. His grandfather shifted to
Nepal on invitation by Bir Shumsher the Prime Minister of Nepal towards the turn of twentieth century. He started his
own business of fabric and clothes and had to fight with Newar the local traders of Nepal and the local authority. This
book talks about the hardships of a businessman when trying to establish trade in a foreign land and the controlling power
of local people. It talks how an earthquake gave them an opportunity to win the trust of the local people and the
administration. In the author's words “The earthquake that shook the foundation of Nepal led to the foundation of
Choudhary Group”.
Binod Choudhary emphasizes the importance of knowing the local culture and language for doing business in a foreign
land. It is reflected in the sentence “Personal allegiance & animosities, based on racial, linguistic and communal
difference also played a part. That guy is a Nepali and this other guy is a foreigner. At a time when a person's nationality
was judged by his language, dress and the food he ate the marwaris were a thorn in their side for some local families”. He
also emphasizes the importance of public relations, networking and engaging with people in business when he talks about
his grandfather opening the shop early in the morning because he could meet and talk to many people as morning is the
only time when most of the people have some spare time. He elaborates the importance of practical experience for success
in business and job. As the saying goes seeing is learning so even if you may not be involved in a job, observation teaches
you a lot. According to him reason behind your failure in a job or business may not always be because of your lack of
capabilities it is many a times governed by external factors. Changing market and new trends play an important role in
shaping the business and being the pioneer gives you monopoly over the market.
Binod's first step in business was set with a school project where he was expected to collect some money and open a shop
with his team. They started a save money campaign, where they saved their snacks money in a piggy bank named “school
project”. With a saving of Rs. 150 after a month they stocked their shop with items high in demand, which they would sell
during lunch break in the classroom to the other students. Post this they had to report their accounts to their teacher. In
his words “This was my first baby step into the world of business. Forty five years later, I do not see any real difference
between the business I do these days and the business I did back then at school. Only the scale is different”.
Government of India organized a conference to attract foreign investment and invited entrepreneurs from Nepal in the
official delegation. But Nepali law did not allow investing abroad. Binod started a campaign to establish a multinational
company on the premise that if foreign companies are allowed to invest in Nepal, then Nepal should also be allowed to
invest abroad. If Maggi was allowed to compete with waiwai in Nepal, why cannot Waiwai take on Maggi in India? He laid
the foundation of his first multinational company in Singapore followed by Taj venture (partnership with Taj Group) his
first international expansion. After this he never looked back. Today Binod Choudhary is the president of the Choudhary
Group (CG Corp Global), a multinational conglomerate with a portfolio of 122 companies spread over five continents
and with seventy-six renowned brands. Internationally respected name in the FMCG as the man behind “Wai Wai” the
most iconic brand from CG.
In-all this book is written very beautifully and gives you a peek through the life of Binod Choudhary. Still I feel the initial
part describing his childhood days and the professional journey of his grandfather and father is a little over stretched and
tires you by the time you reach the latter part wherein he talks about his life and journey to success. Not to ignore his
exceptional skills in detailing things in a way that they come alive while reading through the book.
Reviewed by: Dr. Shweta Vats, Assistant Professor, S.P. Mandali's Prin. L.N. Welingkar Institute of
Management Development & Research, Mumbai. Email: shweta.vats@welingkar.org
POEM
A Present For The Future
Swar Kranti*
Business had slumped

Fate had turned
This Xmas was not
To be like before.
Mummy and Daddy

Prepared their son
That Santa might not
Visit all homes like before.
On Xmas morning
Near the window
Was found a unique present
Unlike ever before.
Seemed like dozens a candies

Packed in shining wrappers
Actually re-used covers of sweets
Contained with dozens a seeds.
Mummy and Daddy astonished

For they hadn't kept any gift at all
Their son had gifted himself a present
For their future to bloom after all.
*Swar Kranti is HR Faculty, S.P. Mandali's Prin. L.N. Welingkar Institute of Management Development & Research, Mumbai.
Email: swar.kranti@welingkar.org
1. Passion:
The soul of Welingkar blossoms in our heart, mind and body.
2. Breakthrough Thinking:
We foster academic rigour in an environment conducive to innovation.
3. Result oriented, Process driven Work Ethic:

We adopt dynamic quality processes to ensure accountability and exceptional
performances.
4. We Link and Care:

We support and collaborate with all our stakeholders through mutual
trust and respect.
Quality policY
We are committed to give our students Quality Management Education in tune with
the changing needs of business and industry.
We shall endeavor to do this by:
 Providing the best learning resources.
 Making the environment conducive for students to develop their creativity,

Leadership skills and ability to learn continuously.
We shall follow a data oriented factual approach to Quality Management leading to

continual improvement of our processes culminating in total customer satisfaction.
S. P. Mandali’s Prin. L. N. Welingkar Institute of
Management Development & Research
Lakhamshi Napoo Road, Near Matunga (Central Rly.),
Mumbai - 400 019. Maharashtra, India.
Tel.: +91-22-2419 8300 Extn.: 8387 / 8187
Email: research@welingkar.org
Website: www.welingkar.org

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Vol.

XXIII Issue 2 September 2017 ISSN 0974 – 1119

Focus on inventive education by offering practical, innovative and

Provide managerial talent with risk managing ability,

management graduates with global mindset.

Build intellectual capital through faculty development, research,

through continuous learning and meeting.

S. P. Mandali’s Prin. L. N. Welingkar Institute of Management Development & Research

Vol. XXIII Issue II

Vol. XXIII Issue 2 September 2017 ISSN 0974 – 1119

Editorial Board Members

Peer Review Referee Board

Dr. P. V. R. Murthy Dr. Suresh Govindaraj

Prof. Harsh Mohan

Editorial Advisory Board

Dr. Arvind V. Phatak, Ph.D. Dr. Muhammad Ehsan Malik

It has been reflected in many International University Libraries:

Influence Of Culture On Gender In India 90

The Encumbered Growth of E-commerce In India: Can We Help? 114

Digitalization & Customer Perception towards the Banking Services 133

Innovative Practices In Marketing 142

BOOK SUMMARY & BOOK REVIEWS

Born To Fly 154

Making IT Big 155

Dr. (Ms.) Ketna L. Mehta, PhD

Dr. Ms. Ketna L. Mehta,

Sustainability Key Driver For Business

Niranjan Khatri* & Sriram Kuchimanchi**

Introduction Today, many leading hotel chains in India

*Niranjan Khatri is Founder of iSambav a sustainability training organisation, Bengaluru.

found to have high-energy consumption between occupancy and energy

Now, effective resource consumption is Focusing on Process efficiency changes,

Road Ahead conscious towards the triple bottom line.

“INTUITION is a reminder of the power

Customers and Humans

Mother Mary was now sitting on a micro Lessons Learned

Being a Grateful Designer

Education needs to be our focus and how!

Change Is Not The Only Constant

*Shahnaz Pohowala, General Manager – Accreditation

Is Interest A MUST For Learning ?

Here is YUUUUGE myth about learning

If a person doesn't find something interesting he won't or can't learn it

But here is a surprise

Brand War “Patanjali Vs Global and

KEYWORDS: Ayurveda, FMCG, India, Yoga

Introduction ready market and its gigantic growth rate

Patanjali Empire the donation made to a NGO through 12A,

Haridwar. It is a sprawling cow shelter with

4. Communication Strategy them through regular yoga and Ayurveda

is Bharat Swabhiman. If while watching Initially, Patanjali's consumers came from

business—an Indian Body Shop. 2. SWOT Analysis of PAL; its core

Figure 2: Baba Ramdev and Patanjali

Figure 3: Rags to Riches journey of Yoga Guru

Figure 4 : Decryption of PAL

Figure5: Revenue Growth

Figure6: revenue growth graph

Figure7: EBITA Margins for PAL

Figure 8: Net Profit (Rs Crore) of FMCG Giants

Figure 9: Companies FY 16 sales till 31st December ( Rs Crore)37