INTRODUCTION AND CONCEPT OF COMMERCE

COMMERCE:
Kotler & Keller defined commerce as the exchange of goods, services, information, money or
anything else with some worth between two or more parties.

Brief History of Commerce:

Commerce had its beginning when the first humans started trading goods, but it wasn't
until money was introduced that what we think of as commerce really began. Global
commerce as its known today had its beginnings in the 16th century, when large trading
companies were formed in the UK, Spain, Portugal, and the Netherlands. These
empires freely traded with each other, and as explorers met other civilizations in Asia
and Africa, their trade routes expanded and connected to the trade routes already in
place in those countries.

By the 20th century, trading and shopping expanded from small shops and outdoor
markets to supermarkets, discount stores, and shopping malls. Sailing ships were
replaced by steamships, then by railroad and finally by planes and large cargo vessels.
With these changes, commerce went from a slow process that could take weeks to a
process that could take as little as several hours. The creation of organizations such as
the World Trade Organization was done to help control commerce and to promote free
trade and remove any barriers to trade. Over the years, commerce has also become
interwoven with government, and most nations have some form of organization that
ensures businesses don't become monopolies or try to manipulate the market.

THE WHEEL OF COMMERCE

In the modern world we can enjoy a very happy life and a good standard of living because of
the development of commerce. Commerce provides all the things we require to lead a happy
life. 3 Commerce refers to all those activities that are necessary to bring goods and services
from their place of origin to their place of consumption. Commerce includes trade and aids to
trade. The aids to trade consist of services such as transport, banking, insurance, warehousing,
advertising, and communication. In ordinary language the term commerce means the exchange
of goods and services of value. But commerce is a more comprehensive term. It includes not
only the exchange of goods and services of value but also the services rendered by various
other agencies in the free flow of goods and services. Commerce relates to all economic
activities resulting in the production, exchange, distribution, and consumption of commodities
and services.

THE NATURE OF COMMERCE

Commerce is considered to be a part of business. Some feel that commerce and business are
synonymous, but this is not the case. The following characteristics will help in understanding
the nature of commerce.
1. Economic activities: All economic activities are undertaken to earn a profit. Commerce deals
with all economic activities undertaken for profit. Some activities may be both economic and
non-economic. A trader buys goods to sell them again and earn a profit while a consumer buys
goods for consumption. In the first case the motive is to make a profit. In the second case the
motive of profit is absent. Thus, commerce is concerned with all economic activities directed
towards earning profit.
2. Exchange of goods and services: Commerce involves an exchange of goods and services for
profit. Goods may be produced for the purpose of resale to customers.
3. Earning motive: Profit is an incentive for undertaking all commercial activities. Any activity
that does not have the incentive of profit will not be a part of commerce. For example, if a
trader gives some goods as charity then it will not be a part of commerce because the profit
motive is missing.
4. Creation of utility: Commerce creates form, place, and time utility in goods. -- By the
conversion of raw material into finished products, the form utility is created. For example,
when a carpenter makes furniture out of wood, the goods may not be consumed at the place of
production.
5) Regularity of transaction: The transaction should be regular. No isolated transaction will be a
part of commerce. The sale of old furniture for replacement by new furniture is not a part of
commerce. At the same time the sale of furniture by a furniture dealer is commerce since the
transaction is regular
THE BRANCHES OF COMMERCE

All those activities that are connected with the transferring of goods and services from producers to
users come under commerce. There may be difficulties with regard to trade, transport, distribution,
finance, storage, insurance, publicity, etc. These aspects are dealt with, and the branches of commerce
remove various difficulties.

1. Trade: Trade removes hindrance of people through wholesalers, retailers, and mercantile agents.
Goods are owned and possessed by those who produce them. Unless these goods go into the hands of
the consumers they will have no meaning for society. Ownership and possession of goods must pass
from the producers to the ultimate consumers. Then only consumers can enjoy these goods. This is
made possible by the organization of trade. Wholesale traders take goods from the producers and from
the wholesale traders. Retail traders take the goods to the consumers. Thus trade through traders
removes hindrance of person.

2. Transport: Transport removes hindrance of place. Goods may be produced at places where they are in
less demand. These goods are to be taken to the place of consumption. With the help of transport
facilities we can create “place utility” in goods. The goods are taken from a place where there is less
demand to the places where they are in more demand. The place utility helps the producer to increase
production and earn a remunerative price. The various modes of transport, i.e., road, rail, sea, and air,
have helped the growth of commerce and industry.

3. Warehousing: Warehousing removes hindrance of time. Many goods, such as cotton, juice, food
grains, sugar, etc., are produced during particular seasons of the year, but they are needed year round.
To make these goods available throughout the year, arrangements must be made for their proper
storage. Similarly, certain goods 8 are needed in particular seasons, e.g., wool cloth is required during
winter. Raincoats and umbrellas are essential during the rainy season. These goods must be in stock in
sufficient quantity before the commencement of the season. This is done with the help of warehousing.

4. Banking: There is also the difficulty of finance to consider. There is always a time-gap between the
time of production and consumption. During this period, traders need funds to carry on their trade.
These funds are made available by commercial banks and other financial institutions.

5. Advertisement and salesmanship: Consumers may not be aware of the availability of various goods in
the market. The absence of information about goods is a great hindrance for buying them. The producer
will also like to have more consumers. Advertisement and salesmanship help in informing consumers
about the availability and usefulness of various products in the market. With the advent of radio,
television, the Internet, etc., consumer awareness about various goods is increasing.

6. Insurance: There is a risk involved in transporting goods from one place to another. This can be a risk
of fire or theft. The fear of loss of goods due to any cause is an obstacle in the development of trade.
Insurance companies provide coverage for all types of losses of goods. Insurance coverage has given a
boost to not only national trade but also to international trade.

7. Communication: The buyers and sellers need the services of various agencies for communicating their
messages among themselves. The producers inform their customers about the production of goods. The
intending buyers send orders to producers for the supply of goods. The services of post offices, private
courier services, faxes, telephones, cell phones, etc., are utilized for communication purposes.
COMMERCE AND

E-COMMERCE:
E-Commerce or Electronic Commerce means buying and selling of
goods, products, or services over the internet. E-commerce is also
known as electronic commerce or internet commerce. These services
provided online over the internet network. Transaction of money, funds,
and data are also considered as E-commerce.
HISTORY OF E-COMMERCE
The history of ecommerce started 40 years ago and, to this day, continues to
grow with new technologies, innovations, and thousands of businesses
entering the online market each year. Electronic Data Interchanges and
teleshopping in the 1970s paved the way for the modern day ecommerce
store. The history of ecommerce is closely intertwined with the history of the
internet. Online shopping only became possible when the internet was opened
to the public in 1991. Amazon.com was one of the first ecommerce sites in the
US to start selling products online and thousands of businesses have followed
since. The convenience, safety, and user experience of ecommerce have
improved exponentially since its inception. This article will address some of
the key players and milestones of ecommerce.
Online shopping was invented and pioneered in 1979 by Michael Aldrich in
the United Kingdom. He connected a modified domestic television via a
telephone line to a real-time multi-user transaction processing computer. The
system was marketed beginning in 1980 and offered mainly business-to-
business systems that were sold in the UK, Ireland, and Spain.
 Types of E-Commerce Models
Electronic commerce can be classified into four main categories. The basis for this simple
classification is the parties that are involved in the transactions. So the four basic electronic
commerce models are as follows,

1. Business to Business

This is Business to Business transactions. Here the companies are doing business with each other.
The final consumer is not involved. So the online transactions only involve the manufacturers,
wholesalers, retailers etc.

2. Business to Consumer

Business to Consumer. Here the company will sell their goods and/or services directly to the
consumer. The consumer can browse their websites and look at products, pictures, read reviews.
Then they place their order and the company ships the goods directly to them. Popular examples are
Amazon, Flipkart, Jabong etc.

3. Consumer to Consumer

Consumer to consumer, where the consumers are in direct contact with each other. No company is
involved. It helps people sell their personal goods and assets directly to an interested party. Usually,
goods traded are cars, bikes, electronics etc. OLX, Quikr etc follow this model.

4. Consumer to Business

This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or some
service to the company. Say for example an IT freelancer who demos and sells his software to a
company. This would be a C2B transaction.

CONCEPT OF M-COMMERCE:
Introduction:
Mobile is becoming the dominant means for accessing communications primarily because
deploying mobile network is not only more cost-efficient but also mobile provides greater
flexibility and convenience to its subscribers than landline telephone.
Mobile Commerce is the subset of e-commerce, which includes all e-commerce transactions,
carried out using a mobile (hand held) device. Mobile commerce, which is commonly referred
to as m-commerce, has become an important concept in today’s business environment.
According to Oxford Dictionary, M-Commerce means commercial transactions conducted
electronically by mobiles. Investopedia defines Mobile Commerce as the use of information
technologies and communication technologies for the purpose of mobile integration of
different value chains and business processes, and for the purpose of management of business
relationships. Over the last few decades, mobile applications have been evolving in India, with a
wide variety now in use. M-commerce is adding significant value to the businesses in India. Key
drivers of M-commerce include widespread adoption of mobile phones and smart-phones and
rising affluent middle class consumers. These factors have increased the appetite for M-
Commerce in India. It has led to newer opportunities for the businesses to grow and for the M-
consumers to obtain benefits in terms of convenience, freedom and speed of work. Inclusive
growth means ensuring that India’s economic development lifts all boats; which is a critical
national priority. One key focus has been on the role of Indian companies in enabling inclusive
growth. Mobile commerce can be used to tackle the issues of productivity and sustainability.

Definition:

M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless handheld devices such as smartphones and tablets. As a form of e-
commerce, m-commerce enables users to access online shopping platforms without
needing to use a desktop computer. Examples of m-commerce include in-
app purchasing, mobile banking, virtual marketplace apps like the Amazon mobile
app or a digital wallet such as Apple Pay, Android Pay and Samsung Pay.

“But mobile commerce is more than just a simple

evolution of e-commerce.”
FEATURES:

Some of the features of m-commerce are

 The mobile device is currently everywhere and has much wider attain than
computers. Consequently, it’s easier for customers to use m-Commerce
applications to carry out transactions.
 With growing competitors, there are great chances that customers obtain better
deals on mobile commerce sites.
 Buyers can have look thousands of items on their cell phones and there is no
need for the online checkout process.
 Your customers will use your mobile app for online shopping whenever
needed.
 As the mobile apps are user-friendly, it’s very convenient for customers to use.
 The benefits of mobile apps are even bigger when you commit to developing a
customized mobile app with a lot of flexibility and options supported business
needs.
 With a mobile app, you’ll be able to gift your product and services in a better
approach.

Types of m-commerce

While m-commerce covers a wide variety of transactions, they can all be

categorized as one of three types:

1. Mobile shopping.

Mostly similar to ecommerce, but accessible via a mobile device. Mobile

shopping is now possible through mobile optimized websites, dedicated apps,
and even social media platforms.

2. Mobile banking.

Not too different to online banking, though you may find some transaction
types are limited or restricted on mobile devices. Mobile banking usually
involves a dedicated app, though some banks have started experimenting
with the use of chatbots and messaging apps.

3. Mobile payments.
There are so many diverse mobile payment options that we have chosen to
cover them in detail further in this article.

As a business owner, and user of BigCo/mmerce, your exposure and interest

in mobile commerce would mostly relate to shopping and payments, which is
what the rest of this article will focus on.

How m-commerce works?

With most m-commerce enabled platforms, the mobile device is connected to a

wireless network that can be used to conduct online product purchases. For those in
charge of developing an m-commerce application, important KPIs to monitor include
the total mobile traffic, total amount of traffic on the application, average order value
and the value of orders over time. Similarly, tracking the mobile add to cart rate will
help developers see if users are becoming customers. M-commerce developers may
also be interested in logging average page loading times, mobile cart conversion rates
and SMS subscriptions.

In terms of mobile payment products specifically, they operate through a form of

peer-to-peer (P2P) sharing. Once a mobile device is paired with a bank card’s
information, the phone can be waved over a payment terminal to pay for a product.
This contactless payment using a mobile device is possible due to the use of Near
Field Communication (NFC).

Applications of M-commerce
Other than the straightforward m-commerce transactions of buying and
selling of goods and services, they have so many applications. Let us
take a look at a few examples,

 Mobile Banking: Using a mobile website or application to perform all

your banking functions. It is one step ahead of online banking and has
become commonplace these days. For example, in Nigeria, the
majority of banking transactions happen on mobile phones.
 Mobile Ticketing and Booking: Making bookings and receiving your
tickets on the mobile. The digital ticket or boarding pass is sent
directly to your phone after you make the payment from it. Even in
India now IRTC and other services provide m-ticketing services.
 E-bills: This includes mobile vouchers, mobile coupons to be
redeemed and even loyalty points or cards system.
 Auctions: Online auctions having now been developed to be made
available via mobile phones as well.
 Stock Market Reports and even stock market trading over mobile
applications.

Advantages and disadvantages of mobile commerce

The advantages of m-commerce include:

 Added customer retention by being more easily accessible.

 More convenience for customers in comparing prices, reading reviews and making
purchases without the need of a desktop computer.

 Wider variety of products and services.

 Automates a businesses’ point of customer contact and sales.

 Variety of payment options

Disadvantages of m-commerce include:

 A poorly executed mobile experience can deter customers from making purchases.

 Mobile payment options are not available in every geographic location and may
not support every type of digital wallet.

 Businesses must know and comply with tax laws and regulations of all countries
they ship to (some businesses will avoid this by only allowing purchases and
shipping from their country of origin).

Understanding Mobile Payment Options

Choosing the right payment solution for your ecommerce business is even more
important when it comes to mobile.
Your customers would prefer skipping the need for adding credit card and shipping
details, so one-click solutions that integrate with mobile wallets offer you and your
customers more.

For some brands, like Power Support, choosing the right payment solution can result in
an immediate increase in conversions. For Power Support, they say a 26% increase in
orders within two weeks after installing Amazon Pay.

Mobile payments is one type of mobile commerce that has become an industry all of its
own.

Mobile payments now include:

 Mobile wallets, also referred to as digital wallets

 Contactless mobile payments
 Closed loop mobile payments
 Money transfers
 Mobile point-of-sale (POS)
 Carrier payments

While not all of these are applicable to ecommerce, it helps to understand what each
type of mobile payment means.

1. Mobile wallets.

Mobile wallets make it easy for online shoppers to securely store their credit card
details, shipping address, and more.

The benefit to shoppers is that when paying for online purchases they don’t need to
enter all this information again, which can be especially awkward on mobile phones.

There are a many mobile wallets available, though some are limited to specific
geographical locations, and only a few are accepted by most ecommerce merchants.

Well-known mobile wallets include:

 Apple Pay.
 Google Pay.
 Amazon Pay.
 PayPal.

2. Contactless mobile payments.

Contactless mobile payments make use of select mobile wallets to facilitate payments
made in-store.

Supported mobile wallets typically include:

 Apple Pay
 Google Pay
 Samsung Pay

Some banks launching their own mobile wallet too.

When making a payment in a physical location, customers can place their phone close
to a supported terminal to validate and transmit payment, instead of swiping their debit
or credit card.

3. Closed loop mobile payments.

Closed loop mobile payments are exactly the same as mobile wallets, but are linked to
a single brand via a dedicated mobile app.

Examples include:

 Walmart Pay
 Starbucks
 Taco Bell

All allow users to add their card details to the mobile app, and to then use the app to
pay for their purchases in-store.

4. Money transfers.

Money transfers were previously limited to banking apps, but now there are an
increasing number of ways to transfer money from one person to another – on a mobile
device – without using a banking app.

Early adopters of this include:

 PayPal
 Google

Now you have:

  Venmo
 Square Cash
 WeChat
 SnapChat
 Facebook Messenger

5. Mobile point-of-sale (POS).

Mobile POS is a way for smaller merchants to process card payments without a
traditional card reader.

BulSquare, PayPal, and other payment solutions also offer mobile card readers that are
portable, and only need a mobile phone in order to process any payments.

These could either be small card readers that attach to your mobile phone, or
contactless card readers which would allow customers to pay for their purchases using
certain mobile wallets.

The Impact of Page Speed on Mobile Commerce

Page speed has always been an important consideration for websites, and it
is even more important when it comes to mobile commerce.
Google has been encouraging developers to optimize for mobile page speed
ever since they noticed that more than 50% of search queries were happening
on mobile devices.

Page speed has long been a ranking factor, but Google has always only
considered the speed of desktop versions of websites.

That means website or storefronts that are mobile optimized will organically
get preference in the ranking algorithm.

But how your site ranks in Google isn’t the only reason to pay attention to
mobile page speed:

 Forrester found in 2009 that 40% of consumers won’t wait longer than
three seconds for a page to load before leaving a site completely.
 With online shopping, site loyalty is contingent on page speed for 52%
of shoppers. If made to wait, 14% of online shoppers would simply
switch to shopping at another site.
 After a poor site experience, 79% of online shoppers state they are less
likely to support a site again.

Top Mobile Commerce Trends in 2019

As a final reminder that businesses can no longer afford to ignore m-
commerce, the data team at BigCommerce analyzed figures and trends
across the BigCommerce platform in 2017, in order to highlight just how
important mobile commerce is right now.

Here are the biggest mobile commerce trends in 2019, based on consumer
shopping data.

1. Increased trust.

More consumers feel comfortable shopping on mobile than ever before.

Security issues have diminished as the age of m-commerce has increased.

Additionally, consumers are more and more of the “digital native” age,
meaning they’ve grown up with computers and the internet their entire lives.

These generations are more likely to use mobile commerce than older
generations.

2. Faster checkouts.

One-page checkouts and digital wallets (Amazon Pay, Apple Pay, PayPal
One Touch) have improved mobile conversion by up to 10% at launch.

And it’s no surprise – as more consumers are comfortable shopping on

mobile, more convenient mobile checkout experiences have surged in
popularity.

3. Easier to use sites.

More and more sites are now optimized for mobile use.

As a result, ecommerce platforms and businesses alike have moved into near
100% responsive site builds, meaning most sites today are easy to use on
mobile.

Mobile Commerce Statistics

Look, you don’t need an article to tell you that mobile commerce is important.
You probably shop on your phone – or browse there at the very least.

That said, numbers never hurt, especially if you are needing to convince
others in your organization about the benefits of a mobile-first m-commerce
strategy.

So, let’s look at the numbers.

Revenue impact for the retail industry.

 Mobile conversion increased 30% YoY from 2015 to 2016.

 In 2012, mobile sales accounted for 10% of total purchases across BC
stores
 In 2016, mobile commerce sales accounted for 31% of total purchases

Mobile device differences.

 iOS users spend 18% more on average than Android users.

 Desktop average order value (AOV) is 53% higher than mobile AOV
(iOS + Android).

Future Trends Relating To the Mobile Commerce

Future trends are predictions what will happen to the topic in the next few years. There
are several prediction In the future about Mobile Commerce

1. Security
For the security, Mobile Commerce will be more secured because now a days not all
peoples trust M-Commerce to do an transaction, because they are afraid it’s not
secured. Because in some case the transaction can be hijack by hackers, so the Mobile
Commerce companies will more focus to the security to M-commerce.

2. More Users
This prediction of "More Users" will be success if security is succeeded. Because if the
mobile commerce is secured, many users will not afraid using Mobile Commerce. If
every people not afraid to using m commerce, M-Commerce users will be increase
because it is more practice and efficient.

3. High Speed Connection (Network Connection)

In the future the connection will be faster than now. Maybe we will not need to loading
if we buy something in our mobile phone like present. In the past we had 2G or 3G
connection, but now we have 4G connections, maybe at the future we will have 5G or 6G
connection. It can be happened because now the connection is going to faster and
faster.

4. More Practical
Now a day not everyone can use M-Commerce usually for Old Generation. Because they
think it is more complicated than traditional way, they more like shopping at the mall
than online shopping. It will make the M-Commerce companies to make people can use
it with more practical than now. They will make the application more easy to use and
easy to make any purchases. If they succeeded, it will make more profit for the
companies and more efficient for the consumers.

CHAPTER 2: LITERATURE REVIEW

2.1 Mobile-Commerce: Definitions

The adjective “mobile” used within the specific contexts of “M-commerce” or “Mbusiness”
signifies an “anytime and anywhere access” related with the business processes. The access
takes place through mobile communication networks and is independent of the geographic
location of the user. The various definitions of M-commerce

Tiwari et al. (2006): M-commerce is defined as “any transaction, involving the transfer of
ownership or rights to use goods and services, which is initiated and completed by using mobile
access to computer-mediated networks with the help of an electronic device.”

Jahanshai et al. (2011): M-commerce is also known as mobile electronic commerce or wireless
electronic commerce. It is a subset of electronic commerce that involves the use of mobile
computing devices in carrying out different types of economic transactions (marketing, buying
and selling products and services).

Kritzinger et al. (2003): Mobile commerce can be described as the act of performing an
electronic transaction that has financial implications from a mobile device such as a cellular
phone or personal digital assistant (PDA).

2.2 Study of Existing Mobile Commerce Practices

The various existing literature has been studied for the study of existing Mobile commerce
practices.

According to Jain (2012): The author outlines the various applications of Mcommerce along
with its advantages and disadvantages in this study. The various challenges 23 regarding the
implementation of M-commerce have been revealed like lack of awareness, security problems,
lack of standardized payment mechanism, wireless constraints, user behaviour, infrastructure,
privacy, etc.

Fong and Yan (2008): The paper explored the mobile payment system design, various M-
commerce application scenarios and the benefits of using SMS in mobile payment. The research
also highlighted how M-commerce is different from e-Commerce and the various reasons for
low level of trust on Mobile commerce such as: stability of the mobile network, standardization
and user experience and thus providing insight for how M-commerce applications can be
technically designed for various scenarios.

Rao et al. (2009): The various security issues of various payment systems have been explored
so as to showcase the best electronic payment system among the existing systems. The
characteristics of all the payment schemes have been featured and the analysis has been
concluded with the comparison of Comdata, sound based e-commerce, iKP and biometric
fingerprint system.

Zhang (2008): A new form of mobile payment for mobile ecommerce and highlights its
advantages has been suggested in this contribution by the authors. The advantages and
disadvantages of the existing mobile payment methods in China such as mobile fee account
payment and bank card mobile payment have been discussed. The study highlights how mobile
payment has great significance related with mobile commerce and also presented the various
hindrances associated with mobile payment.

Garofala kis et al. (2007): The authors conducted and evaluated consumer’s perception quality
so that the quality attributes associated with M-commerce systems can be identified.
Functionality, Usability, Efficiency and Reliability have been defined as the external quality
characteristics and the quality attributes of M-commerce system have then been modelled on
this basis. The quality framework for M-commerce systems has been presented so as to
measure the quality of M-commerce systems and the value of relevance for each attribute of
M-commerce system.

Ngai and Gunaseka ran (2007): The research work acts as a comprehensive and detailed
reference for M-commerce and its applications. The literature on Mobile commerce has been
classified into five distinct categories: Mcommerce theory and research, wireless network
infrastructure, mobile middleware, wireless user infrastructure, and M-commerce applications
and cases. The paper highlights the classification framework for M-commerce articles and
concluded with future roadmap for working in mobile commerce research.
Shin et al. (2006): The study evaluates 4-sector applications by forming clusters: information,
entertainment, financial, management support applications with an empirical study to suggest
consumer’s preference for M-commerce. Factor analysis, regression analysis and factor
loadings have also been used to reach the end conclusions. The paper sums up as a reference
for designing new applications or devices related with mobile commerce.

Bhasin (2005): E-Commerce and M-commerce, various types of Ecommerce (B2C, B2B, C2C and
C2B) and the advantages of both platforms have been discussed in this work. Various
hindrances in M-commerce growth and global prospects in future have also been described in
this study.

Chang and Chen (2005): The smart phone has been presented as the choice of client platform
for mobile commerce (M commerce) in this research work. The authors clearly give significant
details of the desired system requirements, features and the ideal characteristics of the client
platform from benchmarking aspects. A framework for designing smart phone for its use in
further applications related with M-commerce have been illustrated along with characteristics
of M-commerce system.

Valcourt et al. (2005): The categorization of mobile payment methods along with their
characteristics, advantages and disadvantages have been discussed in this study. The authors
conduct a questionnaire-based survey on 130 youths. The results of this survey indicate the
need of more such mobile commerce applications.

Lee et al. (2003): The paper classifies and categories Mobile commerce system (with examples)
into six components: Mobile commerce applications, mobile stations, mobile middleware,
wireless networks, wired networks and host computers. The structure, requirements and the
applications of mobile commerce systems have been stated in this study.

Tandon et al. (2003): The pros and cons of various network technologies such as GSM, GPRS,
etc. and service technologies such as WAP, J2ME, etc. have been evaluated by the authors. M-
commerce issues relating security, bandwidth and business have been also addressed regarding
the mobile wireless technology

RESEARCH METHODOLOGY

Introduction of Research Methodology:

Research is a logical and systematic search for new and useful information on a
particular topic. Reasearch methodology is a systematic way to solve a problem. It is a
science of studying how research is to be carried out. Essentially, the procedures by
which researchers go about their work of describing, explaining and predicting
phenomenon are called research methodology.

3.1 problem statement:

The title of project report:- “Study on consumer perception towards M-commerce.”

Need of study:

The Need of study have to fill the gap that has identified in the previous researchers.

3.2 Objectives:

 To analysis the consumer perception towards m-commerce.

 To determine the factors which influence consumers to purchase products and
services online through mobile phones.
 To identify various issues regarding M-commerce.

3.3 Research design:

A good research design has characteristics viz. problem definition, time required for
research project and estimate of expenses to be incurred. The function of research
design is to ensure that the required data are collected and they are collected
accurately and economically. A research design is purely and simply the framework
for a study that guide the collection and analyze data. In this project descriptive
research design is used.

Types of research used:

Descriptive Research:
 In this project descriptive research design has been used. Descriptive
research is defined as a research method that describes the characteristics of
the population or phenomenon that is being studied. This methodology
focuses more on the “what” of the research subject rather than the “why” of
the research subject.

3.4 Sampling technique and size

Types of sampling technique used:

Convenience Sampling:

Convenience sampling is a specific type of non-probability sampling method

that relies on data collection from population members who are conveniently
available to participate in study.

Sample size:

Sample size measures the number of individual samples measured or observations used in
a survey or experiment.

The sample size of the study was 70. The study was based on multiple regions.

3.5 Data Collection:

Data collection is the process of gathering and measuring data, information or any variables of
interest in a standardized and established manner that enables the collector to answer and
evaluate outcomes of the particular study.

For accomplishing the objective of the study, both Primary and Secondary data have been
used. Data collection through Primary data as well as Secondary data sources.

Classification of data:

Data collection is of two types: Primary data and Secondary data. Primary data is information
collected by the researcher or person himself where as secondary data is collected by other but
utilised or used by researcher. Data can be classified under two catagories depending upon
source finalised. These categories are:

 Primary data
 Secondary Data

1. Primary data: the study is largely based on the primary data which has been
collected through the structured Questionnaire method.
Primary data collection tool:
Questionnaire:
The questionnaire has been prepared for the study of consumer perception
towards M-commerce.
For the present study purpose, questionnaire method is used to collect the
primary data.

2. Secondary data:
This type of data has already been collected by someone else and has already
been passed through statistical process. This type of data has been collected
from the following sources:
 Sources of collection of Secondary Data:
 Internet
 Books

For this study both Primary and Secondary data has been used for research topic.

Reasearch Plan:

Data source Primary data

Research approach Survey

Research instrument Questionnaire

Sample size 70 respondents

Limitations of study:
1. Sense of security: Nowadays people have less trust in the security of entering
payment information on a smartphone, compared to desktop or a laptop
2. Smartphones’ small screen size: This leads to the problems with viewing
products and reading information, especially if the website is not mobile
optimized.

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS:
The data collected from various respondents have to be analyse for drawing conclusion. So in this
chapter, efforts have been made to analysis and interpret the collected data towards perception of
consumers on “Mobile Commerce” through questionnaire.

First of all the collected data have been presented in tabular form and thereafter it is analysed with the
help of percentage and Pie charts.

A brief description of analysis and interpretation given below:

In Table no. 4.1: an attempt has been made of classify the respondents on the basis of age factor.
 Table No. 4.1

Classification of respondents on the basis of Age

Sr. No. Age Group No. of Respondents Percentage(%)

1 Below 18

2 18-40

3 Above 18

Total

Interpretation:

From the above table and figure

Table 4.2 : Classify the respondents on the basis of gender. The gender are Male and
Female. The description of this as below:
 Table no. 4.

Classification of Respondents on the basis of Gender

Sr. No. Gender No. of Percentage(%)

respondents

1. Male

2. Female

Interpretation:

From the above table and figures it shows that majority of respondents are Males and
Females are. Thus it can be concluded that Males ha

Table no. 4. : An attempt has been made on classify the respondents on the basis of
having mobile phones.
 Table no. 4

Classification of Respondents on the basis of having mobile phones

Sr. No. Response No. of Percentage (%)

Respondents

1. Yes

2. No

Total

Interpretation:

Above chart depicted that majority of respondents have mobile phones. About

Table No. 4. : An attempt has been made to classify the respondents on the basis of
their purchase of products and services through mobile phones.
 Table No. 4.

Classification of Respondents on the basis of their purchase through mobile phones

Sr. no. Response No. of respondents Percentage (%)

1. Yes

2. No

Total

Interpretation:

From the above figures and table, it shows that maximum respondents have purchased
products and services through mobile phones

Table no. 4. : Classification of Respondents who hadn’t purchase products and

services using mobile phones.
 Table no. 4.

Sr. no. Response No. of respondents Percentage (%)

1. I don’t know how to

purchase online

2. I don’t trust security

systems

3. I don’t want to give

personal information

4. I prefer to see/touch
products personally
before buying

Interpretation:

Above table and chart depicts that

Table no. 4. : An attempt have been made to classify the respondents on the basis of
purchasing of different types of products and services and how often they purchase.
 Table no. 4.

Weekly Monthly Twice Once Other Total Percentage

per a Response (%)
year year

Trips/transport

Clothes &
Footwear

Leisure
activites

Grocery items

Other

Interpretation:

From the above table and charts, it is shown that

Table No. 4. :
 CHAPTER 5:

Summary

Findings

Suggestions

Conclusion

References

Chapter 5

Summary, Findings and Conclusion

 Summary of the Study:

This project report helped me to get deeply understanding the “ Consumers Perception towards Mobile
commerce.”

The main focus of the study was to assess the perception of consumers regarding the Mobile commerce.
The study is structured of five chapters namely, introduction, literature review, research methodology,
data analysis and interpretation last one is summary and conclusion.
1. Age

15-17

18-24

25-30

2.Gender

Male

Female

3. Do you have smart phone?

Yes

No

4. Do you use your smart phone to get information about products and services?

Yes

No
5. If yes, which kind of information?

Trips and transport

Clothes,

Footwear and accessories

Leisure

Groceries

Others

6. Have you ever purchased any product or service through smart phone?

Yes

No

7. If not, why?

I don’t know how to purchase online

I don’t trust the security systems

I don’t want to give personal information

I prefer to see/touch products personally before buying

8.

9. What are the issues you faced during purchasing or paying online?

Product quality

Payment issues

Unclear return and guarantee policies

Lack of security

Other
10. Would you be interested in using smart phone as a payment method instead of cash or credit card?
(Rate from 0: not interested to 4: very interested)

3
4

Background:
Since the dawn of time, people have been selling products or services.
The way to pay has changed from the swop to the use of money in the
deal.
In today’s world, every business-to-Customer Company tries to sell
something, whether they are products or services. Traditionally, the
place to sell products in business-to-customer companies is a store.
Customers just go to the shop and buy what they desire. This
traditional way of selling goods or services in a store environment is
referred to as a bricks-and-mortar business. Nowadays, there are many
different ways to sell products. Whereas earlier customers should go
for the goods they wanted, now they can just stay in their sofa and
products come to them. This became possible with the advent of
internet and growth of new technologies.
Business has become conducted by networks, the most common
network being the ‘World Wide Web’ allowing consumers to shop and
browse for products without leaving home. E-commerce practices have
expanded its uses into the quickly evolving mobile phone industry in
the form of M-commerce. This means that people can purchase,
browse, and sell products over the mobile phone. M-commerce is
currently growing at a rate much faster than E-commerce has been. By
the end of 2017, m-commerce market is expected to be 24.4 per cent
of overall e-commerce revenues. According to ABI Research’s mobile
online commerce report, this incredible growth is due to the rapid
adoption of smartphones.