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Final Report
Final Report
Submitted to:
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PGDM -IB
IB/01/36
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APEEJAY SCHOOL OF MANAGEMENT
DWARKA, NEW DELHI
MARCH 2010
ACKNOWLEDGEMENT
With great pleasure, I express my heartiest thanks to Mrs. Shweta Jha for giving
me an opportunity to work under her guidance. She gave me the guidelines that
helped me a lot in the preparation of my research report.
I express my thanks to all the respondents to whom I visited, for their support and
valuable information, which helped me in the completion of my research project
work.
I express my sincere gratitude to my parents, friends and all others who have
directly or indirectly inspired and helped me to complete my project with
unremitting zeal and enthusiasm.
Ni
shant Khandelwal
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PGDM (IB)
IB/01/36
DECLARATION
I hereby state that this work is a result of study on the “Teleshopping in India:
Consumer Perception and Attitude”. The findings & conclusion expressed in
this research report are genuine and for academic purpose. It is my own and it has
neither been submitted nor published anywhere before any resemblance to earlier
project or research work purely coincidental. It is totally based on my hard work
and creativity.
Nishant
Khandelwal
PGDM (IB)
IB/01/36
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Certificate
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Mrs. Shweta Jha
TABLE OF CONTENT
1 Introduction 7-9
6 Findings 42
8 Recommendations 44
9 Conclusion 46
11 Appendix 48-52
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Chapter – 1
INTRODUCTION
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INTRODUCTION
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Tele shopping is a form of retailing in which consumer contact occurs outside the
confines of the retail store, such as vending machines, electronic shopping, at
home personal selling, or catalogue buying. Teleshopping appears to be one of the
most promising new direct sales channels due to technological progress and the
interaction opportunities provided by digitalization (Burgess, 2003, TechTrends,
2000). Television shopping shows are broadcast 24 hours a day through cable
television or satellite dish. Most products are presented in one-hour programs that
focus on a particular range of products.
Consumer’s perception towards teleshopping is that it’s an easy process to buy any
product without wasting much time. The quality, durability etc. will not fulfill
their thinking because they are investing their money without seeing the product
and they buy it only for the fulfillment of the need. The majority of the product is
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sold to women and the product is jewelry because the viewers are women’s and
they attract to these new products.
A segment was defined as the presentation of one product, beginning with the
appearance of a related graphic and ending with the disappearance of the graphic.
We selected jewelry because it is one of the top sellers on television shopping
shows, and we selected apparel because it is a closely related product.
In India Home Shop18 had started its own channel for the consumers who are the
user for teleshopping the provide different facilities like free home delivery,
customer friendly multiple payments options, 15 days money back guarantee and
also the EMI option.
Local entrepreneurs copied the products advertised on TV and very soon the
markets were flooded with imitated versions of these products. These products
were not only cheaper compared to organized sector products, but also offered
consumers the facility to personally touch and appraise them. What happens is that
we come out with a product and it is promptly copied by a local player. He
obviously sells it at a lesser price. This way the whole market goes out of our
hands..(PannaM.)
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To address this problem, networks such as Telebrands and ASK opened special
retail outlets in all major metros and semi-metros to enable customers to
personally appraise the products offered, before making a purchase decision.
Apart from the new products, the companies also retailed those products, which
had been taken off air (to make place for new products) but still had potential for
sale. However, the local retailers still enjoyed a substantial price advantage over
the teleshopping networks due to local manufacturing, low transportation costs
and elimination of distribution/delivery costs.
Though the teleshopping networks claimed that their pricing strategies were in
tune with the target customer's profile, the reality was very different. The higher
prices were proving to be a major hindrance for the growth of teleshopping
networks. Most of the products were priced between Rs 1,000-5,000. Customers
were found to be unwilling to pay this amount for lifestyle products that ranked
rather low in their household purchasing priority list.
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Chapter – 2
LITERATURE REVIEW
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LITERATURE REVIEW
The majority of television shoppers were women (85 percent) and the most
popular item sold was jewelry, which accounted for nearly 40 percent of the
business. Other items sold included clothing, cosmetics, and fitness machines (The
Economist, 1996). The consumers who are most frequently used tele shopping
were married, between the ages of 35 and 45, and had higher than average
incomes.
Tele viewing behavior was measured considering the daily number of tele viewing
hours on average (Grant et al., 1991; Perse, 1986; Rubin et al., 1985). Future
teleshopping intention was measured by the response to the question “Would you
buy through the television over the next few years?” on a five-point Likert scale
where;
A five item scale from previous studies was used to measure affinity (Rubin, 1981,
1983, 1984; Rubin and Perse, 1988; Perse, 1986) . Evaluation for each item ranged
from 1 “totally disagree” to 5 “totally agree”.
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the objectives of understanding, orientation and play, and their respective social
and individual dimensions. The scale has a total of 18 items, with three
representative items in each of the six dimensions being studied, measured on a
five-point Likert scale where a score of 1 means “totally disagree” and 5 “totally
agree”. This scale was reviewed by Spanish experts and back-translated to ensure
that no nuances were lost.
Television may also cover their other objectives such as providing orientation to
action or interaction or entertainment when with other people. Agents involved in
the television system, from service providers to advertisers, should exploit the
dimensions television offers to increase individual dependency and message
effectiveness. By doing so, they could attract users with low dependency and low
affinity, thus improving exposure levels and increasing teleshopping adoption
rates.
Research has made it possible to show the impact of television dependency on the
willingness to teleshopping, with the most relevant factor in this aspect being that
of searching for guides to decision taking and fun. Therefore, to increase tele
viewers' willingness to purchase, companies should reconsider both content and
format so that the individual becomes aware that television is useful in his or her
purchase decisions or as a form of entertainment when with other people.
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on-air host to use persuasion strategies to motivate the viewer to purchase.
Unanswered is the question “are hosts using persuasion strategies during their
presentation of merchandise to viewers?” The purpose of our descriptive study
was to identify whether and how the hosts of two major home-shopping channels
used specific persuasion strategies and to document how often they were used. If it
is found that these strategies are being used, that could provide an explanation for
the high number of unplanned purchases made by television shoppers.
Home Shopping Network (HSN) described itself as “the world’s most widely
distributed TV shopping network.” In 2001, customers made about 75 million
phone calls to HSN, leading to sales exceeding $1.8 billion (HSN, n.d.).
Competitor Quality Value Convenience (QVC) described itself as “the world’s
preeminent electronic retailer”. In 2001, customers made 133 million phone calls
to QVC, leading to sales of more than $3.9 billion (QVC, n.d.).
Despite the high sales volume of these two television-shopping channels, articles
in Brand week and The Economist provide evidence that television shopping has
reached a mature stage. Television shopping has found its audience, mostly older
Americans with time enough on their hands to watch: the average person watches
for 36 hours before making a purchase (The Economist, 1996). According to Peter
Solomon, vice president of Salmon’s New York-based apparel and retail
marketing consultancy, “There is not much further they can go until we get to a
more interactive arena” (Underwood, 1996). Then, it will be even easier for
viewers to make purchases impulsively (Kakkar, 2000). Viewers will not have to
pick up the phone or go to their computers and find a particular Web page. Rather,
viewers may be able to place their orders using the television remote.
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Teleshopping network is the customer in the sense that it will save considerable
amount of their precious time and they will get products in lower prices then the
existing market rates, also gift offers accompanied with the products. The goods
are being offered with a slogan: “The products you see on the screen are just a
phone call away: you get some discounts as well”. Manufacturers are being saved
from cost incurred on the conventional marketing through various marketing
channels, boost up their sales and be able to give the margins saved as discounts to
his customer. The marketer, i.e. the teleshopping network get good distribution
margin. For the television channels it is an attractive source of revenues it is totally
commercial.
On a whole the success of the concept depend highly on the ability of marketer to
deliver the goods on time to his valued customer along with other stipulated
parameters. Even though teleshopping as a concept is at a very nascent stage in
India where people still prefers the tough and feel concept.
Teleshopping companies think that how the Indian teleshopping market was won,
to ensure success, teleshopping networks paid special attention to their pricing
strategies. In the initial years, most of the products offered by these networks were
lifestyle products that came last in priority of a typical Indian household. Though
the price of the products offered by various networks in the late 1990s was as low
as Rs 500, most of them were priced at a premium to target the upper classes.
However, over the years, the number of utility products increased and the price of
the products was also brought down to make them more affordable. In 2002, the
price of the articles offered ranged between Rs 200 to Rs 12,000, with a majority
of the products falling in the Rs 1,000-5,000 range. The teleshopping networks
competed with each other in terms of offering the same benefits at lower prices.
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This was particularly observed for various weight reduction products. All the
networks marketed different gadgets that claimed to reduce weight derided the
offerings of rival teleshopping networks claiming to be cheaper and much more
effective.
Hectic activities took place on the promotional front as well, with networks
offering 'early bird' prizes, price reductions, money return (if not satisfied with the
product) offers, free accessories and double product packs at the same price. For
effective distribution of their products, the networks focused on strengthening
their franchisee base across the country. All the major networks in India had their
franchisers across major metros and semi-metros in the country.
Towards the end of the year 2001, the franchisee network of Telebrands India
extended to over 90 cities across the country, while ASK's network spanned across
60 cities (www.ask.com). The networks provided the telephone numbers of all
their distributors at the end of their infomercials, so that the customers could call
their nearest distributor for further enquiries or to place an order.
As a result of all the above initiatives, the awareness about the merits of
teleshopping increased. Customers, who followed global trends in lifestyles and
product usage, began to buy teleshopping products, and the market picked up
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momentum. In 2001, the market registered an annual growth rate of over 20% and
amounted to Rs 500 million. Telebrands led the market with an estimated
turnover of over 250 million, followed by ASK with a turnover of over 200
million (www.ask.com, 2002)
Teleshopping benefits the customer in the sense that it will save considerable
amount of their precious time and they will get products in lower pr ices than the
existing market rates, also gift offers accompanied with the products. The goods
are being offered with a slogan; "The products you see on the screen are just a
phone call away: you get some discounts as well". Manufactures are been saved
from costs incurred on the conventional marketing through various marketing
channels, boost up their sales and be able to give the margins saved as discounts to
his customers. The Marketer, i.e. the Teleshopping network get good distribution
margin. For the Television channels it is an attractive source of revenues it is
totally.commercial.
On a whole the success of the concept depend highly on the ability of marketer to
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deliver the goods on time to his valued customer along with other stipulated
parameters. Even though Teleshopping as a concept is at a very nascent stage in
India where people still prefers the touch and feel concept. Twenty –four hour
dedicated Full-fledged, Teleshopping channels like TVC shows that forthcoming
avenues still persist.
After 5 years the teleshopping industry has grown to about Rs 250cr in 10 years in
India, is now projected to double in next five years, according to industry experts.
Teleshopping players in the country like Asian Sky Shop, Tellybrand, Shop 24
Seven and TVC believe that the industry would be growing around 20-25%
annually.
However, the Indian players are far behind their foreign counterparts. US-based
Tele Shopping Network boasts of $2.4 billion sales last year. Touch and feel is
very important in the Indian context and hence the need for franchisee outlets.
But this increases the cost of products and also a lot of duplication and passing off
happen at these outlets.
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CHAPTER-3
OBJECTIVE AND
HYPOTHESIS
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OBJECTIVE
It is well known fact that the most important step in marketing research process is
to define the problem. Choose for investigation because a problem well defined is
half solved. That was the reason that at most care was taken while defining various
parameters of the problem. A questionnaire was designed major emphasis of
which was gathering new ideas or insight so as to determine and bind out solutions
to the problem.
✔ The research aims to study the perception and attitude of consumers towards
teleshopping in India.
HYPOTHESIS
H0: Consumers are not satisfied with the teleshopping brands in India.
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Chapter – 4
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Research Methodology stands for the ways and means that we adopt for
conducting research. In this study the various steps that are generally adopted by a
researcher in pursuing the research.
RESEARCH DESIGN
Research Design in this research report is Descriptive Research.
Descriptive research is also known as statistical research. The main goal of this
research is to describe the data and characteristics about what is being studied. The
idea behind this type of research is to study frequencies, averages and other
statistical calculations. It does not gather the causes behind a situation. Descriptive
research is mainly done when a researcher wants to gain a better understanding of
a topic. It is quantitative and uses surveys and panels and also the use of
probability sampling.
Universe
All items under consideration in any field of inquiry constitute a universe
population. Universe or population in this research is New Delhi.
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Sample design
It is a definite plan before any data is actually collected for obtaining a sample
from a given population. The questionnaires have been given to 75people. The age
group considered here is 20-45 years of age.
Sampling
Sampling refers to the method of selecting a sample from a given universe with a
view to draw conclusions about that universe. A sample is a representative of the
universe selected for study.
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CHAPTER 5
DATA COLLECTION AND
ANALYSIS
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DATA COLLECTION
This study is mainly based on primary data like data related to awareness of
teleshopping industry and about various teleshopping brands along with the
consumer buying perception towards these brands, so all these primary data was
collected by questionnaire technique.
Data collection will be broadly done under the following two categories namely,
data from secondary sources and primary sources (field survey).
In this study the data will be used from personal interviews given to Indian
Consumers over 18 years old, sampling on the basis of gender, age and income
group.
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Field Survey Methodology
• Use tables to display data details which would be lost in graphs or charts.
• Use a line graph to demonstrate how something has changed over a period
of time.
• Opt for a bar graph to compare data, and keep it in two dimensions as three-
dimensional bar graphs.
• Consider a pie chart to show how percentages relate to each other within a
whole.
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DATA ANALYSIS
Yes 44
No 30
Interpretation
From the above data, it is observed that 44 respondents watch the television and 30
respondents do not watch the television.
Yes 43
No 31
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Interpretation
From the above data, it is observed that 43 respondents notice teleshopping
advertisements and 32 respondents does not notice teleshopping advertisements.
Always 13
Sometimes 26
Rarely 25
Never 10
Interpretation
From the above data, it is observed that 35% respondents have done teleshopping,
34% have rarely did teleshopping, 35% sometimes does teleshopping and only
13% respondents have never teleshop any product.
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Yes 44
No 30
Interpretation
From the above data, it is observed that 44 respondents usually buy through
teleshopping while rest 30 doesn’t go for this option.
Home Shop 18 8
Sky Shop 9
QVC shopping 10
Asian Sky Shop 13
TVC 4
Interpretation
From the above graph , it is clear that 18% respondants prefer shopping through
Home Shop 18, 20% through Sky shop, 30% through Asian Sky Shop, 23%
through QVC shopping and just 9% prefer shopping from TVC.
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Q6. Which product/s have you bought through teleshopping?
Interpretation
From the above data, it can be depicted that 40% respondants use teleshopping for
buying health and beauty products, 18% for buying household appliances, 13% for
buying products for home and kitchen, 20% for buying fashion products and
accessories and rest 9% use teleshopping for buying products for kids.
Q7. If you have done teleshopping do you think the products shown on the
television are as same as delivered?
Yes 18
No 27
Not sure 0
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Interpretation
From the above data, it can be observed that 18 respondants think that the product
shown on television is as same as delivered, 27 respondants think that the product
is not same.
Always 18
Sometimes 19
Rarely 8
Never 0
Interpretation
From the above data, it is clear that 40% respondents think that the products
bought from teleshopping always give value for money, 42% say that the products
sometimes give value for money, 8% think that they rarely get value for money.
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satisfied 22
very satisfied 13
dissatisfied 7
completely dissatisfied 3
Interpretation
From the above data, it is observed that out of 45 respondents, 22 were satisfied by
the performance of the products bought through teleshopping, 13 were very
satisfied, 7 respondents were dissatisfied and rest 3 were completely dissatisfied.
Price 11
Quality 21
Time 8
Performance 5
Interpretation
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From the above graph, it is clear that 11 respondents are influenced by price for
their purchase decision, 21 are influenced by the quality, 8 are influenced by time
and rests 5 are influenced by performance of the product.
Q11. Would you like to buy the product/s using teleshopping in the future?
Yes 19
No 26
Interpretation
From the above data, it can be observed that out of 45 respondants, 19 would like
to buy products through teleshopping in future while 36 would not buy products
through teleshopping.
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Case Processing Summary
Cases
Have you ever notice teleshopping advertisements? * Have you ever done teleshopping?
Crosstabulation
Count
1 2 3 4 Total
Total 13 26 25 10 74
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Chi-Square Tests
N of Valid Cases 74
Here significance value is .696 and it is more than .05 so our null hypothesis is
accepted so we can say that consumers have negative perception about
teleshopping.
Symmetric Measures
N of Valid Cases 74
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Hypothesis -2: Consumers are not satisfied with the teleshopping brands in India.
Cases
Do you think products give value for money? * Are you satisfied with the performance of the product?
Crosstabulation
Count
1 2 3 4 Total
3 1 3 1 2 7
Total 21 13 7 3 44
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Chi-Square Tests
N of Valid Cases 44
Here the significance value is .160 and it is more than .05 so our null hypothesis is
accepted and we can say that the consumers are not satisfied with the teleshopping
products.
Symmetric Measures
N of Valid Cases 44
According to this table these two variables are 45.9% associated with each other
and it’s a moderate level of association so if product gives value for money than
consumer satisfaction level is moderate.
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CHAPTER-6
FINDINGS
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FINDINGS
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CHAPTER-7
RECOMMENDATIONS
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RECOMMENDATIONS
➢ The price that is offer by the tele shoppers is high so the consumers have to
think to buy products through teleshopping.
➢ Timing is not good because the show timing is mostly at night so in India
people sleep at this time and people were not aware of these products that is
offer by the tele shoppers.
➢ Tele shoppers don’t use the celebrity endorser for their product promotion
so this type of advertisement make less impact on consumers so
teleshopping brands have to use some known celebrities for endorsement of
the product.
➢ They have to open their own retail stores to increase their market.
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‘Feel –and-touch’ conce
CHAPTER-8
CONCLUSION
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CONCLUSION
Customers do not believe that they will receive the same product as they product
shown on television so customers hesitate to buy online. Also there is a feel and
concept of great importance in India, consumer usually do not buy without tough
and feel factor.
Most of the payments in teleshopping are done through credit or debit card but the
Indian people do not feel safe paying through debit or credit card but in fact prefer
to pay through hard cash. Delivery time is also the factor in metro cities consumer
get delivery in 1 or 2 days but in rural areas or small towns it takes around 7 to
10days.
The present condition of teleshopping is not very good in India also consumers do
not want to buy products through tele shoppers so the future condition is also not
very good.
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CHAPTER-9
APPENDIX
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REFERENCES
Andrew P.G., Year: 2002, Non -functional motives for online shoppers: why we
click, (Journal of Consumer Marketing), Vol19 No5 pp380-392
Web Sites
http://www.icmrindia.org/casestudies/catalogue/Marketing/The%20Teleshopping
%20Business%20in%20India%20-%20Marketing%20Case.htm
http://www.scribd.com/doc/17406150/Teleshopping-in-India
http://www.scribd.com/doc/22576569/teleshopping-case
http://dictionary.bnet.com/definition/teleshopping.html
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ANNEXURE
QUESTIONNAIRE
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1. Which product/s have you bought through teleshopping?
a) Fashion and Accessories d) Home and Kitchen
b) Health and Beauty e) Kids
c) Household Appliances
1. If you have done teleshopping do you think the products shown on the
television are as same as delivered?
a) Yes c) Not sure
b) No
a) Price c) Time
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b) Quality d) Performance
11.Would you like to buy the product/s using teleshopping in the future?
a) Yes b) No
12. Feedback…………………………………………………………………….
…………………………………………………………………………………
Date: Signature:
……………………………. ……………………..
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TOOLS
Use tables to display data details which would be lost in graphs or charts.
Use a line graph to demonstrate how something has changed over a period
of time.
Opt for a bar graph to compare data, and keep it in two dimensions as three-
dimensional bar graphs.
Consider a pie chart to show how percentages relate to each other within a
whole.
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TABLES AND GRAPHS
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