“Impact of E-commerce’s Return Policies on

Consumer Purchasing Behavior”

A study with reference to Apparel Industry in selected
E-commerce Businesses
(In select metropolitan cities of India)
Thesis Submitted to the
D. Y. Patil University
in partial fulfillment of the requirements for the award of the
Degree of
DOCTOR OF PHILOSOPHY
In
BUSINESS MANAGEMENT
Submitted by
Ms Sarika Omkar Punekar
(Enrollment No: DYP-PHD-14610001)

Research Guide
Prof. Dr. R. GOPAL
DIRECTOR, FORMER DEAN & HEAD OF THE DEPARTMENT
D.Y. PATIL UNIVERSITY,
SCHOOL OF MANAGEMENT
Sector 4, Plot No. 10,
CBD Belapur, Navi Mumbai – 400 614
JUNE 2017
“Impact of E-commerce’s Return Policies
on Consumer Purchasing Behavior”
A study with reference to Apparel Industry
in selected E-commerce Businesses.
(In select metropolitan cities of India)
 DECLARATION

I hereby declare that the dissertation titled “IMPACT OF ECOMMERCE’S RETURN POLICIES

ON CONSUMER PURCHASING BEHAVIOR”, A STUDY WITH REFERENFCE TO

APPAREL INDUSTRY IN SELECTED E-COMMERCE BUSINESSES (IN SELECCT

METROPOLITAN CITIES OF INDIA) submitted for the Award of Doctor of Philosophy in

Management, at Dr. D.Y. Patil University, Navi Mumbai is my original work and the dissertation

has not formed the basis for the award of any degree, associateship, fellowship or any other

similar titles.

The material borrowed from other sources and incorporated in dissertation has been duly

acknowledged.

I understand that I could be held responsible and accountable for plagiarism if any detected later

on.

The research paper published based on the research conducted in the course of the study are also

based on the study and not borrowed from other sources.

Date: Ms Sarika Omkar Punekar

Place: Navi Mumbai (Enrollment Number : DYP-PHD-14610001)

 CERTIFICATE

This is to certify that the thesis entitled “Impact of E-commerce’s Return Policies on Consumer

Purchasing behavior”, A study with reference to Apparel Industry in selected E-commerce

Businesses (In select metropolitan cities of India) and submitted by Ms. Sarika Omkar Punekar is

a bonafide research work for the award of the Doctor of Philosophy in Management at D Y Patil

University, Navi Mumbai, during the year (2014-17). In partial fulfillment of the requirements

for the award of the Degree of Doctor of Philosophy in Management and the thesis has not

formed the basis for the award previously of any degree, diploma, associate ship, fellowship or

any other similar title of any University or institution.

Place: Navi Mumbai

Date:

Prof Dr R Gopal Prof Dr R Gopal

(Director, Former Dean & HOD, DYPUSM) (Research Guide)

 ACKNOWLEDGEMENT

I owe a debt of gratitude to Almighty God for being constant source of strength, wisdom, love,

guidance and inspiration and for giving immeasurable blessing and courage to pursue my study. I

express my deep sense of gratitude to Dr D Y Patil University and School of Management for

giving me this great opportunity to have my doctoral studies under its protective wings.

It is a genuine pleasure to express my deep sense of thanks and gratitude to my Guide, Mentor,

Philosopher Prof Dr R Gopal, Director, FORMER DEAN & HOD, D Y Patil University,

School of Management for his constant wholehearted support, guidance, inspiration and

encouragement. His timely advice and research approach have helped me to a very great extent

to accomplish my Doctoral degree. I am highly indebted to him for this work of mine and

personal growth in me as an academician.

I would like to thank my colleagues, my students and all the industry experts who spent their

valuable time and inputs, this research would not have been possible without your kind support

and help.

I would also like to acknowledge Dr Shital Naikwade, my friend-colleague for her constant

support and motivation.

A deep sense of gratitude to my beloved Husband Mr Omkar Punekar, who have always stood

by me. I thank my parents, my siblings and in-laws for their perseverance and patience while I

was busy completing this research.

Place : Navi Mumbai

Date: Ms Sarika Omkar Punekar

 TABLE OF CONTENTS

PAGE

CHAPTERS NO

LIST OF TABLES i

LIST OF GRAPHS ii

LIST OF FIGURES iii

LIST OF ABBREVATIONS iv

EXECUTIVE SUMMARY v

1 INTRODUCTION 1

2 REVIEW OF LITERATURE AND GAP ANALYSIS 15

3 RESEARCH METHODOLOGY 43

4 APPAREL INDUSTRY 53

5 CONSUMER’S PURCHASING BEHAVIOUR 65

6 E-COMMERCE 74

7 RETURN POLICY MANAGEMENT 95

8 CASE STUDIES ON RETURN POLICIES OF 112

SELECT APPAREL E-COMMERCE BUSINESS
9 DATA ANALYSIS - PART I 126

10 DATA ANALYSIS - PART II 163

11 RECOMMENDATIONS AND SUGGESTION 194

12 MAJOR FINDINGS & CONCLUSION 200

13 SCOPE FOR THE FURTHER RESEARCH 207

ANNEXURE 209

Bibliography 210

Questionnaire 225

SPSS datasheets 231

 LIST OF TABLES
Page
Table No TITLE
No
8.3a Return Policies of Flipkart 121
8.3b Return Policies of Myntra 122
8.3c Return policies of Amazon 123
8.3d Return Policies of Limeroad 124
8.3e Return Policies of Jabong 125
9.1.1a Classification of respondents: AGE 127
9.1.1b Classification of respondents: GENDER 129
9.1.1c Classification of respondents: OCCUPATION 130
9.1.1d Classification of respondents: EDUCATION 131
9.1.1e Classification of respondents: ANNUAL INCOME 132
9.1.1f Classification of respondents: MARITAL STATUS 134
9.2.2 Online Purchasing Behavior 135
9.2.3 Products Purchasing Pattern 136
9.2.4 Preferred Websites for Product Purchase 138
9.2.5 Preferred Websites for Apparel Purchase 140
9.2.6 Frequency of Apparel shopping 142
9.2.7 Amount spent on E-shopping 143
9.2.8 Types of Apparel Purchase behavior 145
9.2.9 Problems associated with online apparel shopping 147
9.2.10 Awareness of Return Policies 149
9.2.11 Return Policy options 151
9.2.12 Point of Reference of Return Policy 153
9.2.13 Clarity in Return Process 154
9.2.14 Apparel Return Policy Experience 155
9.2.15 Reasons for Returning the apparels 156
9.2.16 Difficulty in Returning Apparels 158

i|Page
9.2.17 Nature of Risks involved on Returning apparels 159
9.2.18 Time Spent in Returning Process 160
9.2.19 Satisfaction level of Return Policies 162
9.2.20 Actions and difficulties associated with Returning apparels 164
9.2.21 Adverse impact of Return policies on online shopping 166
9.2.22 Impact of easy return policies 168
10.2.1 Score of Awareness of Return Policies as per Age: ANOVA 172
10.2.1a Score of Awareness of Return Policies as per Age: Mean score 173
Score of Awareness of Return Policies as per education level:
10.2.2 175
ANOVA
Score of Awareness of Return Policies as per education level: mean
10.2.2a 176
score
10.2.3 Score of Awareness of Return Policies as per Gender: ANOVA 178
10.2.3a Score of Awareness of Return Policies as per Gender: mean score 179
10.2.4 Score of Awareness of Return Policies as per occupation: ANOVA 180
Score of Awareness of Return Policies as per occupation: mean
10.2.4a 181
score
10.3 Impact of Easy and lenient return policies on E-commerce business 183
10.3a Impact of Easy and lenient return policies on E-commerce business 183
10.4.1 Adverse impact of Return policies on frequency of shopping: 185
Adverse impact of Return policies on frequency of shopping:
10.4.1a 186
validity test
10.4.2a Adverse impact of Return policies on spending limits of shopping: 187
10.5.1 Return policy satisfaction: AGE 188
10.5.1a Mean score of Return policy satisfaction: AGE 189
10.5.2 Return policy satisfaction: Education 191
10.5.2a Mean score of Return policy satisfaction: Education 191
10.5.3 Return policy satisfaction: Gender 193
10.5.3a Mean score of Return policy satisfaction: Gender 194
10.5.4 Return policy satisfaction: Occupation 195
10.5.4a Mean score of Return policy satisfaction: Occupation 196
10.6.1 Knowledge of Return policies 198

ii | P a g e
10.6.1a Mean Score of Knowledge of Return policies 199
10.6.2 Knowledge of Return policies: Frequency of Shopping 201
10.6.2a Mean Score of Knowledge of Return policies 202

iii | P a g e
 LIST OF FIGURES

Figure
TITLE Page No
No
4.1 Textile industry Growth 55

6.1 Typical E-commerce Process 76

6.2 Growth in e-commerce/ E-tailing 82

6.3 Fashion E-commerce in India 90

6.4 Commodity distribution in E-tailing 91

7.1 Logistic in E-commerce Business 98

7.2 The Forward Logistic Process 100

iv | P a g e
 LIST OF ABBREVATIONS

2G Second Generation
3G Third Generation
4G Fourth Generation
APAC Asia Pacific
ASSOCHAM The Associated Chambers of Commerce of India
B-B Business to Business
B–C Business to Consumer
B-G Business to Government
CAGR Compound Annual Growth Rate
CD Compact Disk
COD Cash on Delivery
EC Electronic Commerce
EDI Electronic Data Interchange
EFT Electronic Fund Transfer
FDI Foreign Direct Investment
GDP Gross Domestic Product
GMV Gross Merchandise Value
IBEF India Brand Equity Foundation
IDCA India Direct Selling Association
IMAI Internet and Mobile Association of India
IMRB Indian Market Research Bureau
ITES Information Technology Enabled Services
MC Mobile Commerce
PDA Personal Digital Assistant
PwC Price Waterhouse Coopers
RMG Ready Made Garments
SKU Stock Keeping Unit
VAT Value Added Tax

v|Page
EXECUTIVE

SUMMARY

vi | P a g e
 EXECUTIVE SUMMARY

Over the years E-commerce industry has grown into multi-billion industry. The progress

of E-commerce has had a noteworthy effect in the development of merchandise.

Assortments of items are made available to shoppers by means of the electronic methods

for business dealings broadly named as B to C exchanges. The progress of E-commerce

has made a significant impact in the movement of goods. Varieties of products are made

accessible to consumers via the electronic means of business dealings widely termed as B

to C transactions. The evolution of E-commerce has a considerable brunt on the sales of

all kinds of products. The wide ranges of products like electronics, fashion products,

home decors, Medicines, grocery items, books, CDs etc with different features, styles,

hues and sizes which are available to the consumers cover the entire demographics. The

cheapest and a convenient mode to buy such products which is catching up the vibes of

youngsters and busy class today is internet via online shopping. The existence of multiple

E-commerce businesses has incepted the oscillations with different cost for a different

brand in the behavior of consumers.

The Indian government's aggressive Digital India extend and the modernization of India

is additionally influencing the eCommerce division. The Digital India extend expects to

offer a one-stop search for taxpayer supported organizations that will have the cell phone

as the foundation of its conveyance instrument .Indian E-commerce business has grown

up extensively due to Large percentage of population has easy access to internet, a recent

introduction of 3G and 4G connection, explosive growth of Smartphone, rising standard

of living, Availability and convenience of getting much wider product range compared to

vii | P a g e
what is available at brick and mortar retailers, cost competitive advantage and evolution

of various websites. As bringing the internet and broadband to remote corners of the

country is giving rise to an increase e-commerce trade. The Indian government is keen to

develop its distribution channel and other eCommerce related services as a major revenue

model going ahead. Digital India and Modernization of India, both these projects will

have significant impact on increasing the reach of eCommerce in coming years.

E-commerce is gradually attracting customers from Tier 2 and 3 cities, where people have

limited access to brands but have high aspirations. PwC reports says according to E-

commerce companies, these cities have seen a 30% to 50% rise in transactions in the year

2013. As Connecting to consumers have become very easy for E-commerce companies due

to flawless distribution channels. A properly managed forward and backward distribution

channel can help an organization in lowering the costs, increasing the sales, prompt

deliveries; enhance reputation in the market, greater competitive edge, and in improving the

customer confidence and level of satisfaction. With increase competition among E-commerce

companies, the responsibility doesn’t get over just after delivering a product to consumer;

they also have to think about defective products that are returned by the consumers back to

the company. For the customer satisfaction and retention, companies have started giving

more importance to reverse logistics and it has become essential part of supply chain. The

effective return operations can enhance the consumer perception of product quality, help

minimizing the purchase risks and it boosts reputation by incorporating good corporate

citizenship. The returned products of handled efficiently and expeditiously can reinsert into

forward supply chain to reduce the further costs. This can

viii | P a g e
create additional revenue, reduce operating costs and minimize the opportunity costs of

writing off defective or out of date products.

Consumers play an important role in online shopping. The expanding utilization of

internet by the youthful era in India gives a rising prospect to online retailers. On the off

chance that online retailers know the variables influencing Indian youthful purchaser’s

purchasing conduct, the relationship between these elements and online shoppers. Online

retailers have full potential to convert potential customers into dynamic ones. The four

key measurements of web shopping are the site outline, site dependability, client

administration and the trust, these elements affect the buyer’s impression in internet

shopping. With the growing preferences and increasing internet penetration for E-

shopping, India will most likely to generate $100 billion online retail revenue out of

which $35 billion will be through fashion e-commerce in the year 2020. Based on a

recent Google research, the company’s director for e-commerce and online, Nitin

Bawankule, every third shopping search on Google is fashion-related and the queries on

fashion are growing at 66 percent year-on-year. The country is set to witness 500 internet

users along with 300 smart phone users by the end of 2018.

Apparel is one of the basic necessities of human civilization along with food, water and

shelter. The Apparel Industry reflects people’s lifestyles and shows their social and

economic status. The Apparel and Textile industry is India’s second largest industry after

IT Industry. At present, it is amongst the fastest growing industry segment and is also the

second largest foreign exchange earner for the country. India has an abundant supply of

cotton and man-made fiber, a well-established production base, availability of cheap and

skilled labor and creative designers. Besides, the Governments liberalization on FDI and

ix | P a g e
export policies also nurtures the growth of apparel industry in India. India is considered as a

best alternative for sourcing of apparel industry next to China by the global business giants.

Today, with increasing needs, ever changing consumer expectations as per standard of living,

and increasing level of competition, rapid technology obsolescence etc, and Apparel industry

is becoming more prone to controllable and uncontrollable risks.

In addition, with the escalating demand with the accessories makes the Indian apparel

market lucrative. The apparel market has undergone series of changes and opportunities.

The challenges related with these opportunities are the indicators of the nations of

upcoming apparel market. The attractive range of products, better brands, constant deals

and discounts, price category and Return policies and the convenience of shopping from

home made the consumers addict to this mode. This made the apparel industry make its

presence felt in a short period of time. The future looks bright for online clothing,

especially; the rise in Indian women shoppers and youngsters coupled by the huge

demand for trendy clothes will continue to fuel this segment.

Late years have seen a surprising change in the way India Shops and exchanges. E-

business has taken the world of Retail by tempest and enraptured the creative ability of a

whole era of business visionaries, with E-trade wanders with different business and

business models. As per the report published by PwC and ASSOCHAM, the division has

grown three times in four years to about 12.6 billion USD in 2013.

It has been observed that several relationships exist in online selling environment. In order to

cater these online buyers with best possible discounts and wide range of products this often

leads to disappointments for all the parties involved. The products can be returned due to

incorrect size or color, wrong delivery, defective or damaged product, quality issue,

x|Page
poor packaging etc. Having a strong merchandise Returns motivates trust in purchasers

and shows you're focused on customer benefits and satisfaction. Despite the fact that the

customer isn't happy with the returned buy, taking care of the arrival professionally will

guarantee their proceeded with support.

The consumers are confident when the purchase is guarded with a feature of returning the

goods in case it does not satisfy the needs of the consumer. The return policy boosts the

risk bearing ability of purchasing the product online. The online apparel sector is

dominated by the consumers by E-shopping services. However, the majority of the

consumers are not aware about the return policies of the goods shipped via E-medium.

However, the booming apparel market comes not without challenges. When the

consumer buys apparel online and his/her expectation is not met, creates a lacuna

between the relationship of consumer and E-commerce websites. This gap can be bridged

by incepting different policies which are in the favor of the consumers whereby.

As per E-commerce expert Shweta Singh “Consumer satisfaction and the risk associated

play a critical role in the buying behavior. In addition, delivery bundles, not keeping the

guarantee of convenient conveyance, wasteful production network and logistics

administration and poor buyer administration are progressing issues that should be tended

to through legitimate utilization of innovation. Lastly, retailers ought to acknowledge it

likewise takes human inventiveness to locate the correct blend of innovation and

individuals that will bring more prominent productivity and maintainability in this area."

When the consumer buys apparel online and his/her expectation is not met, creates a lacuna

between the relationship of consumer and E-commerce websites. This gap can be bridged by

incepting different easy to understand and lenient Return policies which are in the favor

xi | P a g e
of the consumers. The Impact of Easy, customer friendly and lenient return policy can

secure long term retention, consumer loyalty and can also attract other consumers. This

eventually will help E-commerce businesses to increase the profitability.

The nation has likewise seen an expansion in the shopper use on clothing. People have

turned out to be more cognizant with respect to their outerwear and will spend more on

the array. The rising population alongside the expansion in the discretionary cashflow of

the consumers has prompted the increment in the consumption in the attire segment.

Factors like the changing outline designs, creating purchaser class and rising urbanization

have provoked the improvement in the attire business. Extending retail entrance, creating

organization class and the growing offer of the modeler wear have will be the drivers for

advancement. However, the current return policies which are provided by select E-

commerce businesses are very limited and very much restrictive. Hence the consumer

retention rate is very less. The policies which can convert the dissatisfied consumers are

ignored. The study focuses on one such parameter like Return Policies of E-commerce

and Consumer Purchasing behaviour.

The objective of this research is to study the consumer’s purchasing behavior due to Return

policy experiences of E-commerce’s Apparel sector. The study also identifies the various

Return policy options given by E-commerce businesses to consumers and whether

consumers are satisfied with those options, what are the factors which effect on consumer

online apparel purchasing behavior and its impact on profitability of E-commerce

businesses. The study is limited to 4 metropolitan cities of India, Mumbai, Pune, Delhi

and Bangalore and a sample size of 450 due to time constraint. For this research 5 top E-

commerce websites who deal with Apparel sector have been considered i.e Amazon,

xii | P a g e
Flipkart, Lime road, Jabong and Myntra. The basis of these websites selection is

“SiliconIndia.news, Problab technologies Pvt Ltd, infoCreeds.com. To find out the

relationship between the various demographic variables and Online purchasing behavior

Chi Square test was used. The questionnaire consists of Demographic factors like Age,

Income, Occupation, Gender etc. Level of Awareness on Return Policies, level of

satisfaction etc. The research instruments used are questionnaire and interviews.

Appropriate Statistical tools including Chi-Square Test, t-test, ANOVA wherever

applicable have been applied to draw logical conclusions from the data.

This experimental study examined the online return policies and its influence on

Consumer buying attributes and also its impact on the apparel buyer decisions, results of

the study revealed that since online products do not give physical touch of any product

there are high chances that delivered product may not appear as it was displayed on the

website hence consumer have a choice of returning that product. Return policy includes

refund/cashback options, replacement of that product or exchange of that product. So the

apparel online stores should give more importance to apparel buying attributes to attract

and appeal the consumers, and also the promotional programme also should be done

aggressively and appropriately.

The study also recommends apparel E-commerce players, to consider the factors viz.

outsourcing the return management processes, designing virtual gallery, strong

visualization of description of apparel products from a customer point of view,

mentioning universal size with clear return policy options etc. These basic factors will

fundamentally contribute to the success of Apparel E-commerce industry in India.

xiii | P a g e
 CHAPTER 1

INTRODUCTION

1.1 Meaning and Concept of E-commerce 2

1.2 Consumer’s online Purchasing Behavior 4

1.3 Supply Chain/logistics and the need for enabling E-commerce 6

1.4 Retail Reverse Logistics 9

Impact of Return policy management on consumer buying

1.5 11
behavior

1.6 E-commerce’s fashion sector 12

1.7 Return Policies of E-commerce’s Apparel Sector 14

1|Page
1.1 Meaning and concept of E-commerce:

As showed by the distribution head of International Journal of Electronic Commerce,

Vladimir Zwass, Electronic commerce is sharing business information, keeping up business

affiliations and sorting out business trades by frameworks for media correspondences

structure’s. Electronic commerce, in like manner indicated as E-commerce is considered by

Oxford Dictionary (2012) as “ business exchanges facilitated electronically on the Internet”.

Another definition made by Financial Times (2012) as a procuring and offering action over

the Internet. To whole up E-commerce can be depicted as the procuring, offering and trading

of stock and endeavors through an electronic medium (the Internet) by affiliations,

consumers and assorted social events with no physical contact and trade. Some exceptional

definitions of E-commerce which as appeared by changed indications and the media radiate

an impression of being: Electronic Commerce (EC) is the place business trades occur through

pass on trades frameworks, especially the Internet. It in addition depicts the buying and

offering of things, affiliations, and information by techniques for PC frameworks including

the Internet Electronic commerce is about cooperating and establishing consumer relations

electronically. Online business, internet business, or electronic commerce is defined as the

direct of a financial trade by electronic means. Hardware Commerce is a philosophy of

current business era, which addresses the need of business affiliations, sellers and consumers

to diminish cost and overhaul the method for things and attempts while developing the speed

of transport. E-commerce is paperfree transactions of business using the following means:

Electronic Data Exchange (EDI)

Electronic Mail (e-mail)

2|Page
Electronic Bulletin Boards

Electronic Fund Transfer (EFT)

Other Network-based technologies

Declining broadband enrollment costs, and the dispatch of 4G organization have

transformed into the primary impulses of E-commerce in the country. From acquiring

essential supplies to furniture, from apparel to adornments, and fabulousness things and

jewels to ticketing – E-commerce has hugely drawn in the Indian purchaser. Electronic

business has a severe impact by the utility of clustering usages. Viz, Electronic mail, E-

carts and the reports which are available on internet as well. This conjugates tow trade

activities – opertations and their implimentations, focusing on an example of a spam

which consumer receives on respective mails. More links now endeavor to appeal

consumers clearly electronic, using gadgets, for instance, propelled coupons, web based

systems administration exhibiting and concentrated on takes note.

There are two terms which are used interchangeably E-commerce and E-business. But

there are various authors who have pointed out a difference between E-commerce and E-

business. E-commerce mentions to parts of online business including trades among

consumers, consumers, business partners and merchants. Whereas E-business

incorporates these elements, but additionally incorporates operations that are taken care

of inside the business itself. arrangement of an electronic inventory, online installment,

conveyance following, stock administration, Return administration and so forth. Web

based business gives diverse sorts of business exchanges; Business to Business (B-B);

Business to Consumer (B-C); Business to Government (B – G); Consumer to consumer

(C-C); and portable commerce (M-commerce).

3|Page
B2B Internet based business portrays the Electronic commerce between organizations at

the level of makers, wholesalers, and retailers rather than amongst organizations and the

overall population or governments. An organization's done item is regularly the after

effect of various B2B exchanges that help make a store network and outfit it with the

merchandise and materials expected to fabricate that item. B2C web based business is

frequently utilized synonymously with web based shopping or online retail, it likewise

traverses developing classes, for example, paid online administrations or paid substance.

Internet business gives different components like Non-Cash Payments, 24x7 Service

accessibility, Advertising/Marketing, Improved Sales, Support, give pre-deals and post-

deals help to give better administrations to consumers, Inventory Management,

Communication change as E-commerce gives approaches to speedier, productive, solid

correspondence with consumers and accomplices.

1.2 Consumer’s online purchasing behavior:

As the research aims to study the impact of Return Policies provided by various E-commerce

businesses on consumer’s apparel purchasing behavior. E-Commerce and E-business have

extended the speed and comfort with which business can be executed, achieving phenomenal

competition among online vendors. To remain commonsense, E-associations must fit in with

creating propels, continually incorporate new structures and satisfy a wide arrangement of

shoppers. The shopper's purchasing behavior / conduct is decision procedures and

demonstrations of individuals required in purchasing and utilizing items and administrations.

There are extensive quantities of people on the web and they all are potential consumers of E-

commerce business. Since there are such an assortment of providers, the most basic thing for

E-commerce organizations is to grasp what are

4|Page
consumer needs and needs in this engaged business condition. Consumer shopping

practices are affected by different factors, for instance, culture, social class, references,

associations, family, age, marital status etc hence they show particular consumer

practices. These refinements are seen more specific when it is considered between two

differing shopper bunches. Purchaser's attributes are similarly measured by Kotler and

Armstrong (2010) in their research focused that shoppers get motivated form several

advertisements and the offers. In addition to this they also mentioned that social attributes

play a sihgniificant role in their buyijng behavior. It is very essential to analyze the

buying behavior of consumer as consumers ‘responses to an organization’s marketing

technique greatly affects the organizations achievement. And marketers can better

anticipate how buyers will react to showcasing techniques. The consumers’ purchasing

decisions are affected by three factors; personal, psychological and social. It also

determined by level of involvement in purchase decision, importance and intensity to buy

a particular product in particular situation and this motivates him/her to seek for more

information about that product. Consumer buying behavior is divided in four types:

consumer who cost products/services frequently and he/she needs very little search and

effort for making buying decision is known as Routine Response. At the point when

shopper discover data about new brand or class in a commonplace classification, the item

is purchased every so often and which requires direct measure of research and endeavors

before purchasing that item is known as Limited Decision Making. Expansive Decision

Making requires Complex high affiliation, new, exorbitant and also sporadically obtained

things. Abnormal state of budgetary/execution/mental risk.

5|Page
1.3 Supply Chain logistics and the need for enabling E-commerce:

Competition is often seen in each field recently, and also the manufacturing world isn't

completely different. Firms persistently look for more up to date and latest opportunities

and defects inside the framework with the goal that they are regularly handled. Supply

chain management is a critical part in any assembling firm, since it includes the best

utilization of man, machine, material and different assets. Reverse supply chain might be

a minor a piece of the whole arrangement of an association. As it manages the items that

are being sent back to the producer by the consumer with various reasons.

The distribution center provides much of the consumer experience, in E-commerce. The

ability to effectively manage these processes, including the increasing product returns flow, is

a challenge that, if addressed properly, offers consumers major competitive advantages. From

the moment, the online order is placed to when it is picked, packed, and shipped, every step

in the process must be handled efficiently, consistently, and cost-effectively.

The importance of supply chain and logistics management in todays’ highly competitive

and dynamically changing world of E-commerce cannot be overstated. On the battlefield

of omni-channel marketing and distribution, the one thing we know for certain is that

there will be winners and losers. The greater part of that is great in theory, yet not all that

easy to deal with in application. Enabling consumers to personalize their merchandise at

the moment of purchase fabricates feelings of ownership and item steadfastness and gives

company a competitive advantage over those selling comparative items.

The capacity of E-commerce permits geophysical obstructions to disappear, and making

consumers and organizations potential recipients. Foreign business trades can happen

through the web. Web based business is recognizable for its proficiency to come business

6|Page
to acquaint and to life structures trade whenever and wherever. Consumers or business

complex in E-commerce as purchasers or merchants envision on Internet-based

innovation in conformity to accomplish their trades. Along these lines, trading hindrances

and trading costs may move.

Other analyst expressed that E-commerce need to consider the foundation of distribution

center focuses in remote nations, to make high productivity of the collaborations framework,

enhance purchaser's satisfaction, and in addition can pick up shopper's certainty. In E-

commerce exercises, Supply chain arrange and calculated collaborations are two most critical

parts should be considered. Nevertheless, the ascent of E-commerce has given a more sound

and feasible technique for passing on the upsides of the new strategic system. Generally,

cross-borders collaborations require around few week’s time round.

Clearly, organizations had been disturbed by the dump between the focal points which

fabricating system progression has and the responses for pass on those preferences. In

view of this low effectiveness of the creation organize benefit, shopper satisfaction will

be enormously diminished. Some specialist determined that joining E-commerce skill and

IT setup could well upgrade association's general business worth. Online business can

join all amongst organizations and intra-organizations limits, inducing that the three

streams (physical stream, budgetary stream and information stream) of the stock system

could be similarly impacted by E-commerce.

Moreover, E-commerce has a more refined level of impact on supply chains; Firstly, the

execution hole can be wiped out since affiliations can perceive gaps between various

levels of supply chains by electronic strategies for game plans; Secondly, in this way of

E-commerce rise, new capacities such acknowledging ERP systems, similar to SAP ERP,

7|Page
Xero, or Megaventory, have helped relationship to regulate operations with consumers and

suppliers. For the information streams, E-commerce enhanced the most outrageous of

information managing than affiliations used to have, and for the budgetary streams, E-

commerce grants relationship to have more profitable portion and settlement courses of

action. The affections on physical streams improved the technique for thing and stock

advancement level for affiliations. Thirdly, improvement affiliations would keep contributing

on new E-commerce programming courses of action as they are expecting theory return. At

long last, E-commerce gives affiliations a more gainful and practical approach to manage

coordinate with each other inside the stock system. Fourthly, E-commerce would grasp

various parts of issues that affiliations may feel hard to change. One of the most important

aspects of good supply chain strategy, which has been ignored by many companies for many

years is the logistic process of dealing with the flow of returning products, items, materials

from consumers. While forward logistic is about orderly pressed containers recoil wrapped

onto all around arranged beds and moved out to stores and consumers along pre-set courses,

Reverse Logistic is naturally more intricate— and now and again even untidy. The

fluctuation of properties and terms encompassing everything makes numerous potential

manners: come back to maker, exchange to another store, revamp, repackage/re-pack, sell,

dismantle and reuse, reuse, give, or outright discard.

1.4 Retail Reverse Logistics:

Retail Reverse Logistic has generally been set low inside the Supply Chain Process, yet over

the rise of E-commerce industry it is as of now increasing a great deal more consideration as

it has coordinate effect on consumer loyalty, consumer maintenance, net revenues,

organizations' ecological picture and corporate social obligation. As indicated by

8|Page
the European Working Group on Reverse Logistics (2004), Reverse Logistics is: "The

way toward arranging, executing, and monitoring streams of Raw materials, in-process

stock, and completed products, from an assembling, conveyance or utilize indicate a state

of improvement or purpose of legitimate transfer". Reverse strategic calls for business

returns, wrong conveyances, guarantees, repairs and restoration and end-of-life returns.

Retailers for the most part don't have vigorous and sparing reverse supply forms, and

don't have the adaptability to proactively oversee returns. The employment more often

than not falls on the purchaser, as they are considered in charge of pressing up the

conveyed arrange, shipping it back, and catching up with the distributer for standing.

Retailers are typically not able to explore data to quantify slants in what stock was being

sent back, or set up its distribution center earlier time for an outsized volume of profits.

As the concept of reverse logistics has gained acceptance, though, companies have woken up

to a startling statistic, as per the research report, Dave Blanchard, “Product returns cost

U.S. manufacturers and retailers $100 billion every year in lost sales, transportation,

handling, processing and disposal”. Which means consumer returns can reduce a

manufacturer's profitability by an average of 3.8%.” Reverse Logistics is

really perceived as a cost driver as it is an equation of various costs:

Processing cost + Logistics cost + credit/replacement cost + asset depreciation cost =

Total reverse logistic cost.

Return management is a broader concept under Supply chain management’s Reverse

Logistic. Return management incorporates all exercises identified with Return stream,

reverse logistics, compelling gate keeping and returns shirking. It incorporates the

customary strategic exercises of transportation and stock management; however it centers

9|Page
movements to getting item once again from consumers instead of moving item to

consumer.

Apparel businesses have started to handle that vital reverse supply management will

outsized affect general operations. "Returns are a dark gap—consumers are left to their

own particular gadgets, and firms don't get information proactively concerning item

coming back to their distribution center," says eating apple Dampier, bad habit executive

for Newgistics, a profits arrangements provider in capital of Texas, Texas. "For apparel

organizations, particularly, developing E-commerce business operations implies that they

have to give careful consideration to the present technique." A neighborly to-utilize

interface has happened to noteworthy significance for potential consumers to make the

essential buy, and an incredible consumer benefit (counting returns strategy) has

incontestable to be successful for past consumers to make another buy.

Fleischmann et al (2004) in his research concluded that basics of Reverse Logistics can

be analyzed on the four viewpoints: Why are things being returned? What is being

returned? Who is executing reverse logistics activities? Why do companies get involved

in reverse logistics?

Consumers usually send back the purchased items for various reasons. Things may be

returned because of physical damage, some of them are returned in the fact that the

consumers are unhappy and out with the handiness of the thing (desires or expecations

not met), sometimes consumers return things since they find an option thing with better

convenience after they have made the buy, now and again consumers abuse the arrival

approach and return it with no reason. These are quite recently a portion of the genuine

purposes behind the returns of a purchased items by maximum consumers.

10 | P a g e
In various nations consumers are legitimately qualified for give back the thing and

enactment expresses that the organizations are in charge of recovery too. In addition, now

and again organizations themselves take part in recovery activities to keep or make a

perfect and green picture. Many organizations assume liability for the protected exchange

or reusing of their things to guard up the earth. Frequently organizations get included in

recovery and reusing undertakings and turn make mindfulness among their consumers as

well.

Aberdeen's report examination shows that producers normally utilize at least one of four

innovation answers for bolster their reverse logistics endeavors: consumer relationship

management frameworks, benefit management frameworks, transportation management

frameworks and guarantee claims handling frameworks.

1.5 Impact of Return Policy Management on consumer Purchasing behavior:

It’s also necessary to learn that consumers want the return to be simple, fast and convenient.

A lot of online stores do their best to compel the buying process as single and as efficient

as possible. But what a lot of online e-tailers fail to respect is what happens next. What

happens when a consumer necessarily to return a extend they buy? This process is regular

as critical as the actual shopping meet, and arguably even weightier. Because consumers

do not think about how easy the buying experience is when they strait to constrain a

return. What they think about, and the memorial that they carry over with them, is the

experience that they had after making the purchase. If returns are difficult and

cumbersome to the consumers, they bury that website and switch to other website.

Clearly stated e-tailer's return arrangement process assumes a central role in consumers'

acquiring decisions. An e-tailer could have the most wonderfully planned site, moving

11 | P a g e
internet organizing endeavors and consistent bite the dust involvement, however without

buyer-friendly returns, those endeavors are undermined. Returns are a bit of the shopping

exercise, and any mistake related with this procedure will leave a persisting, circuitous

impact on the consumer. As online shopping develops, e-tailer’s return policies need to

develop alongside it. In modern scenario, post purchase process in e-commerce is most

essential so that the reverse logistics remains as column for the devotion of the projects.

1.6 E-commerce Fashion Sector:

The retail fashion industry is a steady business with continually changing styles and ever-

introduce consumer’s request. While supercenters and megastores ruled the past two

decades, an ever increasing number of consumers are scanning for change. They're

looking for a more tranquil and shopper neighborly shopping knowledge.On-line fashion

is rising because the quickest growing class in India’s booming e-trade market, backed

via financial aid, boost generation as well as advertising and marketing dexterity. At the

identical time, the entry of big powerhouses along with Tata institution, Aditya Birla

institution, and Reliance Industries, among others is likewise shaking up the phase, main

to greater consolidation, which until these days has been ruled via smaller businesses

along with Myntra.com and Jabong.com. The way ahead for e-commerce and for fashion

e-tailing is consolidation, believe experts. For instance, in 2014, Jabong was among the

two top online fashion retailers in India, competing closely with Myntra. However, over

the last two years, the company has lost steam. On the other hand, Myntra continued to

get a massive funding infusion from Flipkart.

As per Sarma from McKeinsey's Mumbai "Indian apparel market is expected to develop

well — and faster than the overall economy because of awareness of Western brands and

12 | P a g e
greater numbers of Indian consumers who will spend beyond fundamental needs and on a

broader set of events and furthermore a developing movement towards Western and

easygoing wear."Younger style consumers without problems use a spectrum of digital

structures to get facts on traits, alternate studies inside those consumer journeys, social

media plays a key position. Digital channels no longer best serve to provide pre-buy

statistics; they have got emerge as standalone transaction structures. commonly thanks to

mobile gadgets, international online apparel and shoe retailing is growing at a rate three

times that of the marketplace normal. Consumer expectations are growing because of the

fact that on-line sites are 24/7, have maximum SKUs in inventory, characteristic intuitive

web page navigation, often have no-questions-requested returns policies, and provide

decreased expenses and purchasing excitement capabilities like each day deals and

auctions. While consumers do find their way into brick-and-mortar shops, they're armed

with on line research and are extra stressful than ever.

1.7 Return Policies of E-commerce’s Apparel Sector:

The rise of E-commerce is certainly one of the most important reasons for classic and

nearby apparel becoming present day. It’s important to know that various range of

apparel products are in demands due to many exclusive styles of younger audiences that

can be sorted by using e-trade portals. There are young adults who're exploring distinct

styles of patterns and are more open to experimenting with exceptional clothing.

Today's shopper requests adaptability, straightforwardness and convineince. As internet

shopping develops, retailer’s arrival approaches need to advance close by it. Online

consumers don’t have the tactile aptitude of seeing, touching and, most basically, fitting

partner degree thing before they get. With ecommerce, it’s reasonable to arrange the wrong

13 | P a g e
size or understand that the shading or material isn’t what was normal. Thus, the conduct and

motivations of web customers are exceptionally astounding. Rather than going to store to buy

a thing, they require those garments return to them. online customers as a general rule buy

various pants, shoes, shirts, dresses, and so on. They select one, then remand those they don't

require with merciful merchandise exchanges they get things with the goal of making a call

from the comfort of their own living arrangement. Amazon and Zappos have flourished by

accepting liberal returns approaches that consumers trust. For sure, Zappos - which offers

free two-way sending and a 365-day returns methodology - found that its consumers with the

most elevated return rate are in like manner its best consumers. In order to cater these never

ending demanding online consumers, E-commerce businesses often offer best possible

discounts and wide range of products which often leads to disappointments for all the parties

involved. Since the product cannot be physically seen in online sale, the products can be

returned due to incorrect size or color, wrong delivery, defective or damaged product, quality

issue, poor packaging etc.

14 | P a g e
 CHAPTER 2
REVIEW OF LITERATURE
&
GAP ANALYSIS
2.1 International and National studies on E-commerce 17

2.2 International and national studies on Return policies 21

2.3 Apparel sector 25

2.4 Consumer Apparel purchasing behavior 30

2.5 Online Apparel return policies and consumer behavior 37

2.6 Gap Analysis 41

15 | P a g e
 CHAPTER 2

REVIEW OF LITERATURE AND GAP ANALYSIS

This section starts with the literature review with the concept of the Return policies of

electronic commerce, Apparel sector and continue with online purchasing behavior of

consumers. Particularly, inside the last segments of the 20th century with quick alterations

inside the records era, PCs have turned into a key a piece of the life. With the propensities

inside the records and verbal trade innovation over these years, portable workstation

structure’s abilities have developed out of the blue and close-by systems have end up being a

group that associates the majority of the PC frameworks in the global, the Internet. In the

records innovation, the Internet has ended up being progressively indispensable. 20th century

has been an innovation that, social, budgetary and political changes have happened. This

section starts with the literature review with the concept of the Return policies of electronic

commerce, Apparel sector and continue with online purchasing behavior of consumers.

Alongside the globalism, vanish of the geographical boundries, technological improvements

and unavoidable passing to the actualities society has profoundly influenced and changed the

contemporary controls of the monetary manager universal. Many Return policies of E-

commerce business are analyzed. Consumer behavior apsects are reflected with a reference to

the distinguishing evidences of several attributes.

16 | P a g e
2.1 E-commerce:

International and national Studies on E-commerce

Many research experts concluded that emergence of Mobile commerce has a potential

space in future. An ever increasing number of individuals will get to the Internet through

tablets and Smartphones. Organizations will contribute on the versatile headways for a

superior client encounter soon; in the coming years. The limit with respect to a buyer to

customize and alter shopping background will be invited with open hands. Organizations

will contend on costs, with a mass acquiring and ready to offer at a less expensive rate.

Keeping in mind the end goal to show signs of improvement comprehension of the Indian

market, Sokrati (2017) have directed an exploration on 100+ retailer consumers, through

1.4+ million buys, from more than 2+ million trades. This audit is exceptional in its

revelations about the affecting Indian E-Commerce industry including purchaser's

perfectives. The survey reasoned that men in India shop 3 times more than ladies. Cash

down is the more favored installment decision in india and 60 % online buys occur

amidst business hours.

Asit Ranjan Mishra and Mihir Dalal (March, 2016) in their article in livemint mentioned that

Government has permitted 100% Foreign Direct Investment (FDI) in online retail of stock

and ventures under the “Marketplace model” through the modified course, looking to

legitimize existing organizations of web based business organizations working in India. The

commercial center model of online business organizations is permitted to give support

administrations to merchants on their stage, for instance, warehousing, logistics, arrange

satisfaction, call focus and installment gathering. The new approach moreover orders such E-

commerce organizations to show contact points of interest of the venders on the web.

17 | P a g e
The certification/assurance of things or administrations sold online will in like manner be

borne by the dealers, not the web based business affiliation.

Ms. Shweta Singh (2015), highlighted the report generated by (IAMAI) and IMRB (Indian

Market Research Bureau), the report says soon India will become second largest online user

base after China. The report also stated, 'India has the 3rd largest internet user base on the

planet yet it was estimated that by December 2015. While internet in India took more than

a decade to move from 10 million to 100 million and 3 years from 100 to 200 million, it took only

a year to move from 300 to 400 million users. China has more than 600 million internet users.

Mr Aldrida Costa, a creator, Indian online seller (Sep 2015), highlighted the report

released by AMAI, just 14% of Indian E-users shop online compared with 30-35% in

Brazil and Russia, while China has a 55% transformation rate. Contrasted with the other

three nations, the ticket size of online trades in India is about 70% lower. Indians still

wanted to buy higher esteem things, for instance, gems, jewelry and machines from the

store as they got a kick out of the chance to touch and feel the thing before getting.

Over the period of time extensive ubiquity of E-retailing has created great challenges and

opportunities. An essential challenge is to balance the choice between blocks and-mortar

and E-truck. Li, Zhaolin (Erick) Lu, Qiang; Talebian (2015), have developed a

framework for selecting the appropriate circulation channel given assortment, logistics

and consumer characteristics. The block mortar retail model needs visual merchandising,

physical presence of items and other processes whereas the online retail model, accepts

order online and deliver items offline.

As per the review conducted by “Worldwide Retail E-commerce index” (2015), 39 million

(3.9 cr) or under 3% of India's masses have ever bought something on the web, a rate which

18 | P a g e
is underneath nations like Saudi Arab and Ireland, which are extensively littler nations.

The good thing is that India saw one of the most elevated improvement in e-commerce

portion. As per the report published by PwC (2015), E-commerce in India, Accelerating

development, Mobile commerce influenced the e-commerce activities. With different

mobile applications being developed by most eCommerce websites, smartphones are

increasingly replacing PCs for online shopping. Mobile commerce has taken a lead to

acquire consumer’s procurement as well as building consumer steadfastness for different

brands.

Kirthika Nelson (July 2014), stated that as indicated by a recent Forrester research, 16% of

India's aggregate populace of 1.28 billion use online methods for shopping. Unlike developed

countries where PC penetration rates have driven Internet reception, faster mobile penetration

is helping bolster the Indian Internet populace, because of the development of "mobile-just"

Internet users over the previous two decades. Research moreover compared the weakening

financials of physical system and e-tail counterpart over the previous 3 years with the quick

development to conclude that online is the approach, in the future. Considering that, at an

aggregate level, working and net edges of organizations, for instance, Shoppers Stop,

Cantabil, Kewal Kiran, Provogue, and Trent have all exhibited a declining pattern this may

be a figure that should be considered important. Comscore.com (2014), reports highlighted

that the web based business market is relied upon to reach to 125 US$ billion by 2024.

According to Forrester Research, a free innovation and statistical surveying firm, only 16%

of India's total people was online in 2013 and of the online clients only 14% or 28 million

were online purchasers. India, in this way, was still in a beginning or youthful phase of

development of online retail spending.

19 | P a g e
China was in rising stage at half, though Japan (69%), Australia (57%) and South Korea

(70%) were in develop organize.

Mr Shahan P (2013), stated that the Indian E-business market apparently expands

enormously. While the India's retail showcase figure was $470 billion in 2011 and is required

to rise likewise as $850 Billion by 2020. With more than 10 million online customers,

furthermore they see an improvement rate of 30% expansion. 3 billion in 2011 and hoping to

ascend to $125 to $250 billion by 2024-25. In this way, the India's e-taking after market made

offers of $600 Million in 2011 and is expecting $70 Billion by 2020. As per Mr Jonathan D

Caplan, President and Chief government, Genesco restriction, "India includes a youthful,

knowing and skilled populace, core consumers. It's a dreadfully sensible market. we have a

tendency to selected to be in Asian nation before China,"

The relevant information asn the associated growth of tehe consumers using online services

has shown a remarkable progress, consequently, the covalent between the tow parties is

thoroughly developed. Shaw (2006). As per Gummesson and Polese's argument (2009)

Buyers can request for expected products and additionally vendors can fulfill his

requirements. ‘The ascent of these new information and communication developments and of

Internet consumers, has showed another publicizing reality’ Xavier and Pereira, (2006).

The criticalness of the engaged power and pervasiveness has come over frontal zone and

affiliations' appreciation of competition has changed definitely. Nowadays associations

use E-commerce channels to talk with consumers and to addition high ground, Lee and

Lin (2005). Online business help associations to redesign their definitive coordination and

decreasing trade costs for the buyer gatherings, Subramanian and Shaw, (2002). Burke,

R.R. (2002) highlighted that a faith of a conusmers play a critical role in development of

20 | P a g e
an organization and it increses its market share as it follows the Business to Consumer model,

moreover the statement also holds true that more is the consumer base, high is the net profit.

Moreover, Astute and Morrison (2000) communicated that online business helps relationship

to get to unnecessarily various buyers and merchants. Rowley (2000) and

Maignan – Lukas’ examination (1997), believed that the cyber crimes which are related to

monetary transactions have to demotivated the consumers who carry out online shopping.

Solomon (1998), mentioned in the research that evaluation of the systems is a result of

consumer’s satisfaction to purchase various goods online. Business to purchaser online

business practices generally called e-retailing, occur among affiliations and the

consumers. Online business is basically one greater instrument for retail associations

offering things by using electronic advancements to accomplish their consumers and

besides giving conveyance organizations. The accomplishment of this range in a general

sense in light of trust issue Lee and Turban, (2001).

2.2 Return Policies:

International and National studies on Return policies:

UT Dallas doctoral candidate Ryan Freling (2016), in his review tested the supposition that

all arrival arrangements influence buys and returns in a comparable way. It proposed case is

not same with each retailer, as retailers have a tendency to force confinements to deter returns

or offer tolerance to energize buys by controlling five merchandise exchange components:

time, cash, exertion, degree and trade. A review found that Lenient merchandise exchanges

prompted expanded buys. He additionally found a littler constructive outcome, yet at the

same time importance of strategy mercy on returns. The arrival arrangement tolerance ought

to rely on upon the retailer's destinations. In the event

21 | P a g e
that a retailer needs to animate buys, offering more permissive money related approaches

and low-exertion arrangements might be successful. He additionally said the cost of

merchandise exchange influences the main issue of e-tailers income.

Narayan Janakiraman et al (2016), in his exploration thinks about 5 essential variables

which differed in merchandise exchanges to make them pretty much tolerant. i.e money

related tolerance, effort mercy, time mercy, trade mercy and degree mercy. The review found

that offering the full discount of the item (financial mercy) or making returns simpler (effort

mercy) work best in motivating consumers to buy the item. In any case, the attention ought to

be on attempting to decrease the quantity of profits, then offering additional time and not

tolerating returns on reduced things is more successful. Promote, since the cash returned back

to the consumer is frequently not as much as everything forked over all required funds, down

to the last cent, triggers a bigger number of profits than trade installments paid out part.

Besides, investigation of his examination concentrate likewise appeared alongside financial

hazard, it is additionally hard to request that consumers hold receipts or round out a shape for

return. The following trouble was thinking about the normal restocking charges, an expense

on returns that means something negative for the sum the buyer gets back. At last, stores that

sold solid items forced more money related and exertion limitations than stores than sold

non-sturdy items.

Ms Pooja Vishant, (June 2016), in her article highlighted on the loopholes in Amazon's

arrival strategy as the whole weight is given on vender's shoulder. The article said that as

amazon, does not confirm if the item is harmed/surrendered. They simply acknowledge open

box things and return it back to merchant. Amazon doesn't check the item being returned.

The claim has been open for 3 months with no activity. She additionally reasoned

22 | P a g e
that all commercial centers ought to check the bundles from consumers before tolerating

comes back to guarantee the correct item is being sent back. Generally, merchants will

keep on incurring gigantic misfortunes. High-ticket items like cell phones can suck away

whole month's benefit.

Keith Philips, president and CEO, Voxware (2015) conducted a research and the research

proved that, the majority of the time, consumers return products due to retailer errors.

Frequent errors in the supply chain not only increases the distribution.

Lantz et al. (2013) concluded that components like enactment and rivalry regularly

constrain e-retailers to offer free returns despite the fact that such offers presumably

would not have been beneficial something else.

Based on the research done by Eric T. Anderson et al (2010), retailers by changing their

current merchandise exchanges can gauge the gross and net request and figure expected

changes in net benefit. Retailers can compute more precise value flexibilities by joining

changes to their net request when returns are permitted. Merchandise exchange model

can help retailers to streamline their profits arrangements for individual consumers and in

addition crosswise over item classes and obtaining modes, for example, online versus in

stores.

Chargebacks911 have concentrated on 9 noteworthy and regular purposes behind giving

back the item obtained on the web. i.e consumers purchases the wrong thing, the bought

item is did not require anymore, the item did not coordinate its depiction given on the

web, the consumer wasn't comfortable with the item, a blessing obtained was mistaken,

the consumer didn't need the thing, the item was harmed upon entry, the vendor delivered

the wrong thing and critically consumer takes part in closet.

23 | P a g e
This clarifies why firms put resources into sending advertising correspondences, concerning

their arrival approach and different administrations, to present and forthcoming consumers, to

build consumers' mindfulness and uplift consumers' enthusiasm for buying items from the

firm Petersen et al., (2009) and Su (2009) showed that over 70% of online consumers

consider merchandise exchanges before settling on buy choices. The familiarity with

merchandise exchanges, for example, return remuneration, can clearly empower buyer

request and correspondingly increment deals. Nook et al. (2006), for instance, appeared in

their field concentrate that consumers who encounter a free-based item return will probably

buy more than a consumer who encounters an expense based item return.

E-return administrations have been distinguished as the concentration motion for e-

retailers endeavoring to enhance their administrations, where consumers relate e-return

administrations with high caliber after deals benefits and saw esteem. Parasuraman et

al., (2005).

It feels extraordinary to consider web based shopping as an alternative with no dangers.

Especially in the apparel fragment, consumers routinely address about the right size,

shading and blend of things. Tolerant return conditions are a welcome to mastermind the

thing in different sizes and tints, to make a point to have asked for the sensible clothing.

These revelations incite to the supposition that the consumer is likely going to purchase

extensively more from that site, since he or she is content with giving back anything that

does not fit his or her needs, Reinartz et al., (2002)

Retailers along these lines find that obviously imparting their profits arrangement will

give a flag to consumers about the more immaterial parts of the item and administration

quality, most likely prompting expanded deals Wood, (2001).

24 | P a g e
2.3 Apparel sector:

International and national studies on online apparel sector:

According to the ASSOCHAM report since Indian consumers are associated 24x7 through

their advanced cells, tablets and other cell phones which is prompting a slow

development of web based business into portable commerce and there is an issue of

comfort which likewise prompts hasty purchasing. The perusing patterns, which have

comprehensively moved from the desktop to cell phones in India, internet shopping is

additionally anticipated that would take action accordingly, as one out of three consumers

right now makes exchanges through mobiles in Tier-1 and Tier-2 urban areas. In 2015, 78

for every penny of shopping questions were made through cell phones, contrasted with 46

for each penny in 2013.

The most elevated development rate was found in the apparel portion, just about 69.5 for

each penny over a year ago took after by electronic things by 62 for every penny, infant

mind items at 53 for every penny, excellence and individual care items at 52 for every

penny and home decorations at 49 for every penny. The most imperative contributing

variable to the fast development of computerized commerce in India is the expansion in

the utilization of cell phones. As per the report, the one of the driving elements for the

internet shopping is the age profile of the consumers who are youthful, between 15-35

years. This fragment is very net keen and appreciates doing new sort of shopping

background, for all intents and purposes from their work area best in office, portable

workstations at home or even Android-based telephones. As indicated by the latest report

by Technopak, Indian Textile and Apparel Compendium 2010, the household textile and

apparel feature measure in 2009 was Rs. 218570 crore (US $ 47bn) and is depended upon

25 | P a g e
to create at the rate of 11% CAGR to accomplish Rs. It is observed that the general size

of textile and apparel industry, including the household market and shares, is starting at

now assessed at Rs. 656000 crore (US $ 140 bn) by 2020. 1032000 crore (US $ 220 bn)

by 2020, with a CAGR of 11%. 327000 crore (US $ 70 bn).

Economic Times article (2014) “Bata, Fabindia and Evok going for the arrangement to take

advantage of web based shopping fever” A number of shop retailers and strip shopping center

administrators are getting a handle on a "click and Gather" strategy where customers

purchase things on the web yet take developments from physical framework in an offer to

join the electronic shopping free for all. Infiniti Mall in Mumbai, for example, is wearing

down an electronic business thought where its tenants are asked to give around 10%

markdown to online shoppers, yet the buyers must visit the stores to take movement. Decent

Retail, which works strip malls in six urban ranges the country over, also, is tackling a near

model. The move comes when a growing number of Indian buyers are moving a not too bad

bit of their shopping to electronic business players, for instance, Flipkart, Amazon and

Snapdeal.Respondents from time to time buy accommodating pieces of clothing on web as

demonstrated by Napompech, (2014) and Zuroni Md. et.al think the parts affecting

consumer's manners towards ecommerce purchases through electronic shopping states that

ladies clothing and lace where supported by 38% of the respondents. 41% of people respond

to inspiration buying while the rest did not. Correspondingly, ladies apparel and additional

items will most likely be acquired in view of entrepreneurial obtaining. Wolfinbarger and

Gilly30 contemplated that 90% of the online consumers slant toward online clothing

shopping to refrain from shopping impediment or undesirable weight from arrangements

partners or sidekick or youths. As demonstrated by Ngai et al. (2014), the

26 | P a g e
clothing store organize fuses three stages, the material creator, apparel maker and retailer.

The clothing business experiences rapidly changing consumer ask for with respect to

style of the apparel being made. Price has been accounted for to be an urgent buy integral

variable for apparel. Besides online consumers are probably going to see that costs of

items in online shops are frequently lower than physical stores. Rebates are said to affect

dress acquired through internet business. The early online consumers from India were

affected by elements, for example, value, brand, quality and site not at all like their USA

early online consumer partners who were more impacted to shop because of cost and

rebates as indicated by Gehrt et. al. (2012).

Workman and Cho (2012) announced that men and ladies contrast in form cognizant

shopping yet, they don't vary in the imprudent, quality, brand or value angles identified

with internet shopping. Apparel industry is compelled to bring new items into the market

at short interims because of high shopper desires. Yi et al., 2011.

Agrawal, Mohan Sandhir, Vidushi Gupta, Gaurav (2010), concluded that "Rising Profile

of Online Apparel Shoppers in India" Online shopping is most basic nowadays in the

created world particularly in the USA. Despite the fact that quickly rising, web based

shopping in the creating nations especially in India is yet to end up plainly solid and

differentiated. Towards exploring the rising profile and distinguishing contrasts between

the American and Indian online consumers, this review reported an overview and a few

other exact tests. The review uncovered a tremendous potential for changing over Indian

in-store consumers into online purchasers. This review encouraged retailers and brands in

extending their nearness and effect however online entryways.

27 | P a g e
Jones, Christie, Soyoung Kim, (2009) in their study analyzed the impact of retail brand

trust, disconnected support, apparel association, and site quality on online clothing

shopping goal for youthful female US consumers. This review additionally inspected the

impact of retail brand trust, disconnected support, dress association and two elements of

site quality on online clothing shopping goal. Moreover, they discovered that Off-line

support was the most grounded indicator of web based shopping aim. Suggestions for

multi-channel clothing retailers were examined in light of these discoveries.

The article distributed by Cowart, Kelly O., Ronald E. Goldsmith, (2007) researched the

variables which supported online based apparel usage. Using Consumer Styles Inventory,

the survey found that segments like brand mindfulness, quality and plan discernment,

check faithfulness, absence of alert and greedy shopping engage the online apparel

shopping.

The article published in Business Today (2007)," Internet's 10 Best Shops, gave the data

on the 10 best online stores in India. It referred to that the "Individual Shopper" device of

Style Feeder Company helps one to shop and limit buys. Web based business Company

offers an online group focused apparel store. The examination shopping webpage of

PriceForSure.COM organization offers presents online lists, video transfers, liveWeb TV,

and closeout capacities.

Factors affecting clothing purchases are style, quality, brand and the availability of wide

range of brand and clothes diversity which were found to be positively related to online

purchase by Sondhi and Singhvi, (2006).

Lee, Eun-Jung, Park Jung Kun Park, Jung Kun (2005), “Online administration

personalization for clothing shopping." This review investigated the elements of online

28 | P a g e
administration personalization in the online apparel retailing setting, as to consumers' real

web based shopping exercises, this review exhibited the elements of online administration

personalization with regards to online apparel retailing. Additionally, demonstrated the that

consumer web based shopping encounters may effect on their online administration

personalization states of mind. Hypothetical and administrative ramifications are likewise

talked about with respect to online administration management. In view of the outcomes,

Internet-based apparel retailers may profit by creating different sorts of personalization

administrations by improving shopping expectations of their consumers, specifically, of the

individuals who are faithful to the retailers.

Goldsmith and Fynn (2004) found that daring purchaser and customary list purchasers

were more disposed towards online apparel buy. Mark nature and past involvement with

internet shopping was observed to be a vital component for apparel buy done on the web.

Kim (2004) expressed that the apparent qualities of internet shopping comprised of four

variables: exchange cost, motivating force, website plan and intelligence impacted

shopping conduct significantly. Existing reviews call attention to that there are a few

components affecting the online buy aim like trust, hazard, web involvement, shopping

introduction, web based shopping background, shopping inspiration, social qualities and

social impact. Each or a blend of these components particularly add to online buy

expectations.

Cowart, Kelly O. Goldsmith, Ronald E. (2001)," in their examination inferred that the

impact of purchaser basic leadership styles on online clothing utilization by undergrads".

Apparel buys constitute one of the quickest developing fragments of internet business.

Therefore, there are solid hypothetical and administrative motivations to better

29 | P a g e
comprehend shopper qualities related with purchasing apparel on the web. This paper

researched motivations for online clothing use, utilizing the Consumer Styles Inventory.

There are various factors associated with online clothing shopping like quality awareness,

Product awareness, indulgent shopping and brand certainty. But with all these factors

Value affectability was contrarily related with web based spending.

Research concerning online apparel shopping incorporates the elements that propel and

restrain such shopping, the quality and fulfillment of the garments sites. Elements that

hinder web based apparel shopping incorporate the failure to attempt on garments and

worries about Visa security and trouble in evaluating the nature of the items. Elements

that rouse internet apparel shopping incorporate the accommodation, fun, and briskness

of purchasing on the web. The individuals who have past web shopping knowledge, the

individuals who know about the brands, and who look for data online will probably make

garments buys on the web.

2.4 Consumer Apparel purchasing behavior:

Keith, Voxware (2015) expressed that arrival strategies unquestionably have costs,

however it has extreme effect consumer loyalty, consumer steadfastness, and at last, main

concerns. Web based shopping and shopper desires will just keep on increasing. No

question, the ideal opportunity for retailers to enhance their distribution centers with

wearable innovation like voice programming is presently. Without hands voice

programming has demonstrated to altogether lessen distribution center picking blunders,

so retailers can promptly get the correct item to the ideal individual and keep those

reliable consumers cheerful.

30 | P a g e
The review led by Chargeback911, expressed that arrival arrangements are troublesome

for shopper and in addition retailers. In any case, the arrival sweet spot can really expand

the consumer steadfastness towards site. The review expressed that what are the

fundamental mistakes submitted by dealers while expressing merchandise exchanges

which makes negative effect of consumer loyalty and their acquiring conduct. i.e the e-

rear don't uncover contact data, Consumer's inquiries go unanswered, Consumer benefit

hours are excessively prohibitive, Interactive voice reaction telephone frameworks that

limit human-to-human connections are off-putting, Cancelation and merchandise

exchanges are excessively prohibitive, which influence the buyer steadfastness.

Khare and Rakesh (2014) concentrated on the internet shopping conduct of both male

and female Indian understudies and presume that male understudies were more positive

and open towards web based shopping. Comfort and speed of requesting influence online

buy. Conveyance time deferral ought to be repaid with unconditional presents and further

rebate. Since pictures offer online items, practical pictures from various edges must be

given. there is a critical need to reproduce the customary shopping background onto web

based shopping knowledge to draw in potential Indian online consumer

M. Krishnakumar (2013), research results showed that the store qualities progression and

reference social occasions are the basic estimations of garments obtaining conduct. buyer

qualities, reference packs, store properties, progression and product attributes. the apparel

shopping behavior of Indian consumers through five estimations.

To update through perception of Gen Y consumers, the research broke down the effect of

shape affiliation and saw experiential regard on Gen Y consumer’s retail buying conduct.

Sullivan, Pauline et al (2012, ) said that regardless of Generation Y, consumer’s colossal

31 | P a g e
part as a pioneer in the market, it is logically striving for retailers to understand these

consumers\' lead and mind explore.

As per Sarkar (2011), a fruitful internet promoting must concentrate on expanding the

hedonic estimation of the destinations and offer stricter security to the people utilizing

their card for installment. Consumer buy goals expanded with website architecture,

unwavering quality/security, responsiveness and general administration nature of the

online entryways. Consumers feel more serious hazard for purchasing clothing items

online because of powerlessness to completely inspect the item on the web and the

generous variety in the qualities of apparel conveyed.

In the apparel area, there are numourous national and international brands entering in with

many private barnds. After sustenance and foodstuffs part, apparel is major retail area as the

usage of apparel is moreover broad in volume. There are various prominent factors which has

impact on customer’s obtaining behavior and the author has focused on cognizance and

perceiving the basic determinant components affecting the buyer buying conduct towards

attire, Krishna, C. V.. (2011) furthermore he said that as numerous apparel companies are

joining the retail sectors, Indian retail sector is expanding. Likewise the market leaders in

retail industries which are concern with a business of apparels. The measurement point has

no relation between the buyer’s preferences towards the same.

J. Sinha (2010) The amount of people involved with various online activities is growing

every day. While the amount of online consumers is extending, it is not in respect to that

of physical consumers. Explore has endeavored to clear up the disturbing execution of

online shopping when appeared differently in relation to the physical shopping outline.

32 | P a g e
Lahiri, Isita et al (2010), in their review recognized that there are various elements of the

consumer’s purchasing behavior which is influenced by retail apparel portion.

N. Sumathi et al (2010), addressed in t heir studies that prequesite of specific character in the

apparel has a contributory impact on the influence of conusmer’s purchasing behavior as well

as their desire to get acquainted with the market leading brands. Quality and energetic regard

are the other essential markers of the purchase objective. Rajagopal (2010), focused on the

elements of customer lead and its effect on purchase desires towards configuration apparel in

the Indian market. The results found that socio-social and personality factors which relates to

viewpoints of the purchase opinion among consumers.

Jinhee Nam (2007), in their research reviewed that the self-governing living inhabitants

were contemplated concerning style awareness, information sources and shopping habits.

Jinhee Nam has considered youth and female consumers to study the reaction of apparel

shopping. The study gained the review that apparels are purchased for enjoyment or need,

however less for similitude. Radha Krishna and Shylajan (2007) projected and studied a

model and they also considered the effect of various visual merchandising techniques

consumer’s regular purchasing behavior towards checked apparel items. In any case,

conspicuous confirmation of factors, nearness of which revels consumers to go for sorted

out retail garments brands are still left unturned. As indicated by Cowart and Goldsmith

(2007) quality, mark, form, libertine shopping, lack of caution and brand dependability

affected internet shopping conduct design.

A review was led by Memon (2006), to study the post purchase impact of private brands

on apparel retailing. In his study he has considered two retail outlets Westside and

Pantaloons in Ahmedabad city and recognized the hypothesis that people are set up to

33 | P a g e
change over to various brands if comparative workplaces are open. A study on shopper’s

purchasing behavior examines the numerous processes which focuses on how consumer

chooses the product which is secure, which has utility and it fulfills the necessisities.

Learning of consumer conduct straightforwardly influences showcasing technique,

Anderson et al, (2005).

Gupta (2004), examined the variables impacting the decision of private name in departmental

stores of Hyderabad for two item classes - handled nourishment and toiletries.

J.H and Lennon et all (2004), assessed in their research that impact of TV on apparel

shopping and inspiration acquiring and found results that there is a positive association

between drive obtaining and TV program introduction on apparel shopping. Buyer lead is

the examination of the systems included when individuals or social affairs, select,

purchase, use or dispose of things, organizations, considerations or experiences to satisfy

needs and longings, Michael R. Soloman et all (2004).

Kim et al (2003), analyzed the behavioral objectives model of internet searching for apparel

and the survey comes to fruition maintained Fishbein’s behavioral points exhibited in

deciding behavioral objective to scan for dress on the web and the result showed positive

relationship among perspective and subjective principles incorporates that behavioral point is

not a component of self-ruling game plan of attitudinal and institutionalizing elements

however of a course of action of relationship between these variables. The disclosures of this

audit recommend that however the effect of perspective and subjective principles are not

proportionate in their results for behavioral desires both are basic markers of consumer’s

shopping conduct in the particular setting of online searching for apparel

34 | P a g e
Abel Stephen (2003), in his paper spoke about the research that addressed the internet

business outline and related purchaser behavior. Organizations have recognized and

conjectured on noteworthy themes going from Web usability, exhibiting channels and diverse

segments influencing online obtaining conduct. Regardless of the way that researchers have

focused on what appear to be differing parts of online obtaining conduct, their surveys may

be gave off an impression of being interrelated and dependent, even to the level of revealing

creates whereupon web business, to the extent future arrangement and research, could be

developed. The progression of Electornic business has affected not quite recently the

business focus through the help of the replacing of stock and ventures, furthermore human

direct in light of the frameworks of online organizations.

Christy M. K. Cheung et al. (2002), analyzed the web shopping conduct under Various

settings consistently. This proposed framework not simply outfits with a solid point of view

of online shopper lead, also fills in as a remarkable run for researchers. In context of this,

give a complete review of the composition and propose an investigation structure with three

key building pieces (point, gathering, and continuation) so as to research the online purchaser

lead purposely. Regardless of the way that researchers from a grouping of business requests

have increased gigantic ground over the span of late years, the degree of these audits is to

some degree wide, the surveys show up respectably isolated and no uniting speculative model

is found in this investigation go. As indicated by Frank R. Kardes (2002), consumer conduct

is the investigation of human or purchaser reacts to items, administrations and the advertising

of items and administrations. The idea of purchaser conduct is that generally individuals

purchase items not for what they do but rather for what they remain for. Shopper’s behavior

has been inspected as it gives the calculated

35 | P a g e
structure and vital deduction for completing fruitful division of business sectors

Schiffman and Kanuk (2000).

The general population who utilize the Internet as a common mechanical get together

what’s more, or the general population who have additional time starved bolster shopping

on the Internet. In setting for the web based retail channel, it is necessary to appreciate

the purchaser’s perspective, point and direct in light of the web gaining hone. In addition,

who are additional time obliged tends to purchase online more once in a while.

Swaminathan et al (1999), refered merchant qualities, security of exchanges, substance

for affirmation and shopper qualities as sections affecting electronic trade. Bellman,

Lohse and Johnson (1999), looked at the relationship among economics, particular

qualities, and viewpoints towards web shopping. These producers find that individuals

who have a more wired way of life.

Isita and Pradip (1996) did a review on variables impacting buy of apparel from sorted out

retail outlets. The regular change in ways of life with changing design inclination of

consumers is bolstered by the more up to date retail offerings originating from the sorted out

retailers, where clothing gets most extreme significance. Keeping these changing aspects in

view, this review makes an endeavor to distinguish the variables of the consumers'

purchasing conduct that is affected by retail apparel portion, and to evaluate the significance

of each of them to consumers in choosing clothing from composed retail outlets. There are

many reviews done at worldwide level on behavioral part of consumers with regards to retail

promoting. Decision Robert (1999) did a review on the distinctions in shopping propensities

for men and ladies. The review found that ladies are the essential consumers in the United

States. Contrasts with respect to the issue of where to shop and

36 | P a g e
contrasts in purchasing blessings are found amongst men and ladies. That implies ladies

need to do a ton of juggling to fit in their shopping. They don't linger in light of offers, on

the grounds that the climate turns warm, or whatever other reason savants make. Really,

ladies begin shopping sooner than men yet complete similarly as late on the grounds that

they have such a great amount to do. Men and ladies likewise vary with respect to where

they shop. Ladies are well on the way to shop at markdown retail establishments for

endowments.

The different variables affecting individuals' shopping conduct have been seen by Berry

(1996). The creator did a review on Retail disappointment. However, in spite of hyper

rivalry in many markets, a few retailers are performing admirably. What they have in like

manner is convincing an incentive for consumers made through a heap of advantages that

exceeds shopping troubles. Retailers who offer a predominant stock combination,

reasonable costs, regard for consumers, time and vitality reserve funds, and fun can

induce the kind of dedication that secures their future. Sproles and Kendall (1986) built

up a model to conceptualize buyer's essential authority lead with eight customer mental

presentation components viz., hairsplitting perception, check mindfulness, peculiarity and

shape discernment, careless and impolite purchaser, perplexed by over choice shopper,

incessant and stamp reliable purchaser, recreational and hedonic shopping awareness, and

cost and regard comprehension.

2.5 Online apparel returns policies and Consumer behavior:

As per Venakatesh Peddi, Principal, IDG Ventures India, there are three drivers of e-retail in

India today: expanding interest for optimistic and way of life items by the developing white

collar class. The absence of retail foundation, particularly in semi-urban districts and

37 | P a g e
Developing computerized mindfulness and solace with executing on the web. Today,

greater brands are not dithered by poor dissemination organize as posting on any national

e-retail can guarantee the contact the client remaining at the remote corner of the nation.

According to the overview directed by comScore and UPS 63% of American consumers

check the Return plan prior making a purchase and 48% would prefer shopping more with

retailers that offer bother free returns. These courses of action might have a great deal more

essential impact on overall consumers. The report additionally specified Consumers have

been prepared to be more mindful with regards to purchasing on the web. Not exclusively are

they bringing about the extra transporting costs, however they likewise are not ready to

associate with their buy face to face as they would in a physical shop. A bother free returns,

discounts, and trades approach demonstrates that the ecommerce business remain by their

item, and pride themselves on a stellar consumer benefit understanding.

Dr. Mehmet Sekip et al (2016) in their examination "Balancing Strategic Purchase

Deferrals: The Impact of Online Retailers" concentrated that how merchandise exchanges

can affect shopper decision and online retailers' primary concern. In his exploration, he

has concentrated many variables like buyer conduct, item valuing, and stock control and

the intricate interchange among these and merchandise exchanges. He recognized the

way that indulgent merchandise exchanges enhance consumers' valuation of the item and

makes them more inclined to buy it. While adaptable merchandise exchanges instigate

more returns that must be exchanged at the leeway time frame. As much as consumers

love the possibility of simple returns, for retailers, it is a twofold edged sword.

Online vender Mr Mayank Bhatia (April, 2016) expressed that for his organization returns

were as high as 25%. Still there was no chance merchandise exchanges can be surrendered.

38 | P a g e
He additionally expressed that if E-commerce organizations don't permit returns, it

resembles bouncing out of the skillet and into the fire. He specified that modules for

installment, returns and requests are made to help the vender to offer and pick up shopper

consideration.

Online item return measurements report created by Readycloud Consumer Relationship

Management programming, helpful, bother free returns influences web based business'

main concern. As per Comscoreover 63% of consumers read the online item returns

approach before making a buy. 81% of consumers need an advantageous returns

arrangement that is without bother with no arrival shipping cost, UPS. Around 33% of all

items requested online are returned by consumers, so understanding that profits are a

piece of the purchasing procedure is imperative, WSJ According to CNBC report, when

free returns are offered, buys can be expanded by up to 357%. At the point when return

shipping, expenses are charged, 81% of consumers are more averse to make a future buy,

Upstream Commerce.

Rakesh Sareen (2015), originator of Abhishti, a ladies' dress image stressed that profits

are justifiable as a purchaser doesn't get the 'touch and feel' understanding while at the

same time shopping on the web. As consumer purchases the item without touching the

texture or understanding the size. Indeed, even subsequent to giving all the detail in the

portrayal, the consumer still would not comprehend the item unless they touch and feel it.

On the off chance that the consumer is indicating confidence in acquired items, mark,

without really having it then it's E-commerce organization's commitment to do likewise

for them. This 2-way road constructs relationship and trust among consumers.

39 | P a g e
Purchaser returns are in writing frequently saw as a negative part of working together.

Hjort et al. (2013), in any case, trusted that the most gainful consumer is a rehash consumer

who as often as possible returns merchandise. Past writing on the issue shows that most

associations must manage item returns Huscroft et al. (2013). Notwithstanding, there is

restricted writing on the effect of e-consumers' apparent clothing merchandise exchanges and

saw quality, mastery, unwavering quality of data on apparel sites. Particularly, with respect to

how business' clothing merchandise exchange and consumers' view of site quality

particularly influence consumers' requests and returns. Explore on the basic intentions and

impression of e-consumers' conduct is consequently important. The outcomes will most

likely incorporate particular information, which can be used to green the store network and to

enhance the execution and benefit of online shops other than.

Lantz et al. (2013) explored genuine e-consumer behavioral reactions to free conveyance

and free returns. The aftereffects of this review propose that a merciful merchandise

exchange was observed to be related with expanded request recurrence and expanded

likelihood of profits. Powers et al. (2013) found that learning of liberal merchandise

exchanges supports returns, as the liberal strategies make returns simpler to fulfill.

Because of the mercy of clothing merchandise exchanges the potential for consumers

acquiring pieces of clothing with no goal to keep them is a conspicuous risk in online

business. It is likely that offering liberal return conditions urge consumers to arrange

effortlessly, not mindfully. Proof was likewise found that merciful conveyance and

returns strategies appear to fortify (r)e-tail getting conduct Hjort et al., (2012). Whenever

consumers, because of the familiarity with a free-based item return, will probably buy

progressively and frequently, the outcome is that the recurrence of profits will increment

40 | P a g e
as well. Notwithstanding, when a consumer knows about costs that will be charged by

each arrival and the level of push to experience to authorize an e-return is high, he will

likely do his best to arrange the coveted item in one go and attempt to dodge returns.

The familiarity with the capacity of returning pieces of clothing to the online retailer for a

full discount, will along these lines most likely impact the recurrence of apparel returns.

Kang et al. (2009) found that thought of merchandise exchanges was emphatically

identified with clothing return conduct.

Consumers' apparel buy conduct relies on upon the apparent sought after clothing

merchandise exchange and on consumers' aims and inclinations. Consumers, who feel

certain and happy with the gave return conditions, effectively choose to make online

buys. They don't encounter any hazard and tend to make unconstrained, unreflective

buys. The outcome of neglectful, prompt buys in any case, is that they as often as

possible outcome in lament and choices to return.

2.6 Gap Analysis:

In the current competitive era most of the organizations focuses on the level of consumer

satisfaction associated with the delivery and the after sales services, as more the

consumer satisfaction level more is the sales and market share. It's clear that e-tailers

need to concentrate on enhancing their multichannel satisfaction procedures, and a

standout amongst the most critical parts of a frictionless consumer experience is the

returns procedure. Return policy has become a factor of competitive value. The growing

competition in e-Business to Consumer commerce almost forces e-retailers to provide

generous e-return conditions. Today's consumer needs and expects a consistent shopping

knowledge, and retailers that give a straightforward and proficient returns process will be

41 | P a g e
in front of the opposition. Retailers can moreover utilize progressed prescient

investigation to increase important purchaser and item bits of knowledge. Through these

bits of knowledge, retailers are then ready to enhance their quality gauges and operations

and satisfaction forms, concentrating on guaranteeing long haul associations with their

consumers. By concentrating on all parts of the consumer encounter, retailers can go far

to guarantee long haul gainfulness, mark mindfulness, and their remaining in a dynamic

and focused retail industry.

Many researchers have focused on the features of the various products & services and its

relation towards consumer satisfaction, awareness, perception and knowledge. However,

there is no study on Return policies and consumers behaviour in India which plays a

significant role in growth and development of the organization. The study is an attempt to

analyse the impact of Return policies on Consumer Purchasing behaviour in selected

cosmopolitan cities of India viz Mumbai, Pune, Delhi and Bangalore. .

42 | P a g e
 CHAPTER 3
OBJECTIVES OF THE STUDY,
HYPOTHESIS & RESEARCH
METHODOLOGY
3.1 Research Problem 44
3.2 Statements of Objectives 45
3.3 Statement of Hypothesis 45
3.4 Research Methodology 46
3.4.1 Research Design 46
3.4.2 Sample size 47
3.4.3 Sampling designs 48
3.4.4 Pilot study and reliability test 49
3.4.5 Questionnaire design 49
3.4.6 Tool for Data collection 51
3.4.6a Personal Interview Method 51
3.4.6b Questionnaire Method 51
3.4.7 Statistical tools for data analysis 52
3.4.8 Limitations of the research 52

43 | P a g e
 CHAPTER 3

OBJECTIVES OF THE STUDY, HYPOTHESIS & RESEARCH

METHODOLOGY

3.1 Research Problem:

At every point of time, due to increased penetration of internet and smartphone, every

individual has become potential consumer for a company who deal with online business.

and with increased technological infrastructure, demand for products have also increased

tremendously. Understanding and analyzing, and meeting consumer’s demand has

become fundamental duty of every E-commerce business around the globe. As the online

retailing is modern medium of shopping, it is important to analyze the consumer

purchasing behavior with respect to different strategies adopted by E-commerce business

to be competitive in market. The research study focuses on the consumer purchasing

behavioral pattern on apparels and its influence on E-Commerce industry. The research

helps the participants to understand the following:

Does lenient and Easy to understand return policies attract consumer’s

attention? Does it effect on consumers’ Apparel purchasing pattern?

What is result of the interaction of Return policies and purchasing behavior for the E-

commerce business?

Can these two variables effect on E-commerce’s business?

What is the level of awareness and satisfaction of existing return policies among

consumers?

44 | P a g e
3.2 Objectives of the study:

The aim research is to study the concept of Return polices, its role in Ecommerce

businesses and various benefits associated with it and its impact on consumer Purchasing

behavior in Ecommerce businesses.

1. To understand the level of awareness of Return Policy among consumers

2. To study and analyze the impact of Return Policy on Apparel purchasing behavior

of consumers

3. To study the level of satisfaction of Return Policy among consumers

4. To analyze the impact of easy and lenient return policies of Return policies on

select E-commerce business

5. To understand the relation between Return policy options knowledge of E-

commerce business and consumer behavior

3.3 Hypothesis:

H01: There is no significant awareness of Return Polices among consumers

H11: There is significant awareness of Return Polices among consumers

H02: There is no significant impact of Return policies on E-commerce business

H12: There is significant impact of Return Policies on E-commerce business

H03: There is no significant impact of Return policies on consumer’s Apparel

Purchasing behavior

H13: There is significant impact of Return Policies on consumer’s Apparel

Purchasing behavior

45 | P a g e
 H04: There is no significant association between the level of satisfaction of apparel

Return Policies and demographic factors

H14: There is significant association between the level of satisfaction of apparel

Return Policies and demographic factors

H05: There is no significant relation between awareness of various return policy

options (knowledge of return policy options) of select E-commerce Business and

consumers purchasing behavior.

H15: There is a significant relation between awareness of various return policy options

(knowledge of return policy options) of select E-commerce Business and consumers

purchasing behavior.

3.4 Research Methodology:

Research Methodology illustrates the way of the research has been conducted by

presenting the methodologies and theories used. Research methodology involves the

outline for the study to be conducted. It comprises of Research design, Sampling design,

data collection tools, the process of data collection and the interpretation of the data.

3.4.1 Research Design:

The research design has an exploratory as well as descriptive component. The exploratory

research was based on interviews with E-commerce professionals who are online apparel

providers. Secondary data was collected from various national and international journals,

research papers, magazines, industry reports, newspaper articles and search engines.

46 | P a g e
In order to collect primary data survey method was used to investigate Return policies and it

impact on consumer behaviors and purchasing decisions. Overview as questionnaire is

decided for this research. Studies are a sort of research which are more unbending than

interviews. They are normally used to accumulate thoughts from a huge populace. Every

respondent is made a request to react to a similar arrangement of inquiries, it gives a

proficient method for gathering reactions from an extensive example before quantitative

examination (Saunders et al., 2009). The questionnaire was set up as self-directed and

distributed electronically utilizing the Internet, Internet-interceded questionnaires. Since the

way of the questionnaire help to achieve a substantial populace, Internet-intervened

questionnaire makes that above and beyond and it was conceivable to achieve more

respondents. After finalizing the questionnaire, before the distribution of them, the

questionnaire presented to 45 participants to test it. Pilot test provided to receive suggestions

from respondents to enhance the questionnaire. The survey was conducted on a sample of

500 respondents who have experienced E-commerce’s return policies. Total

500 questionnaires have been sent to respondents out of which only 452 were valid

questionnaires. But for further analysis only 450 questionnaires have been considered.

3.4.2 Sample size:

The sample size used for the study was calculated using the formula. The stratified

sampling was used in the study.

Consider z = 1.96 ( it is standard for 95% level of confidence)

Standard deviation calculated from pilot study = 10.5

Margin of error = 1.00

47 | P a g e
 Sample size = (1.96 * 10.5 / 1)^2 = 424 ( 425 rounded)

Minimum requirement of data is of 424 respondents which is rounded to 425

respondents. Whereas total 450 respondents for this study.

3.4.3 Sampling Design:

Since this study is totally focused on Return Polices of E-commerce businesses of

Apparel Sector and Consumer purchasing behavior. The sample frame consisted of

consumers who have bought apparels online and experienced Return policy.

Consumers from selected cosmopolitan cities of India like Mumbai, Pune, Delhi and

Bangalore.

City Population (as on 2011) Sample size

Mumbai 12,478,447 150

Pune 3,115,431 40

Delhi 11,007,835 135

Bangalore 8,425,970 100

Total 3,50,27,683 425

48 | P a g e
3.4.4 Pilot study and Reliability:

A pilot study was conducted after collecting the data from 45 respondents who have

experienced Online apparel shopping and return policies. Reliability tests were conducted on

the sample in the pilot test. The Cronbach Alpha test of reliability is applied. The score of

alpha value obtained is 0.702, indicates that the Questionnaire is valid and reliable.

3.4.5 Questionnaire Design:

Data collection was done with the help of a questionnaire. The questionnaire was

comprised of demographic factors of various respondents who have experienced E-

commerce’s return policies, various reasons for returning the apparels, online shopping

behavior, and possible risks involved in returning the apparels. It also contained

attitudinal scaled questions such as awareness level, satisfaction level, action associated

to returning the apparels using likert scale and some multiple-choice questions.

The questionnaire was prepared taking the following parameters into consideration:

1. Awareness about E-commerce services

2. Awareness about Return policies

3. Satisfaction level about Return policy experience

4. Preference for return policy options like Cash back, Coupons, points redemption,

Product exchange etc

5. Reasons for returning the apparels

6. The actions associated with returning process

7. Impact of Return policies on purchasing behavior

49 | P a g e
Different types of questions were asked in the questionnaire to find out the result of this

study. The examined variables were of different types; opinion, behavior, attributes and

knowledge.

In the questionnaire, 1st six questions (1 to 6) explain the demographic information of the

respondents like age, gender, education, marital status, occupation, annual income etc.

Further, 4 questions (7 to 10) explain the online shopping usage of the respondents. These

questions were intended to understand the online shopping behavior of respondent

towards category of products and websites e.g items purchased online in the past,

preferred websites etc.

Since for this research online apparel sector is been considered; Question number 11

explain the preferred websites used by the respondents for apparel shopping. Question

number 12 to 14allowed to understand the respondent’s apparel shopping behavior like

frequency of online apparel shopping, amount spent on online apparel shopping and type

of apparels purchased online.

To analyze the respondent’s purchasing behavior, it’s important to understand the

problem they face in the shopping process. Question number 15 reveals the information

about problems faced by respondent’s before and after online shopping.

As the focus of this research is to understand the consumer purchasing behavior due to

apparel return policies of select E-commerce business, it is mandatory to understand the

awareness about clear return policies, experience of return policies and return policy

options among respondents. Question number 16 to 20 reveals the information about

Return policy awareness and clarity in return policy and options available for respondents

while returning the products purchased online.

50 | P a g e
The consumer purchasing behavior depends on how easy and lenient return policies

offered by E-commerce vendors. As consumer, do not get physical touch of any product

sold online. And hence there is high probability that product will be returned to online

vendor. To understand for what all reasons purchased apparels were returned by

respondents, whether they faced any difficulty while returning those apparels, the risks

involved in returning apparels etc21 to 26 questions were asked.

E-commerce companies always try to retain their consumers and attract more consumers

by providing satisfactory services to them. As the impact of the consumer’s satisfaction

level effect on their business. To understand the impact of easy and lenient return polices

and also adverse impact of cumbersome return policies is studied through question

number 27 and 28.

3.4.6 Tools used of data collection:

3.4.6a Personal Interview Method:

The personal interview conducted was structured and unstructured and was used for

exploratory research, problem definition, Questionnaire designing and interpretation of

qualitative research outcomes. This approach was adopted to overcome the time

constraint since all the respondents were executives in companies holding crucial

positions and having limited time to spare. In conducting these interviews a structured

interview approach was used to avoid wastage of time.

3.4.6b Questionnaire Method:

Through literature survey, discussions with academics and industry experts, a

questionnaire was designed using likert scale. The questionnaire dealt with demographic

51 | P a g e
details of the respondents like gender, age, income, occupation, education, marital status,

online shopping expenditure etc. followed by the statements using Likert scale to

measure awareness about Return policies, satisfaction level of various return options

given, purchasing behavioral pattern and to measure the preference for Online shopping

websites. The questionnaire was circulated to the Consumers from selected cosmopolitan

cities of India like Mumbai, Pune, Delhi and Bangalore. As the internet penetration rate is

very high in these cities. Which is favorable for E-shopping.

3.4.7 Statistical tools for Data Analysis:

The Data analysis was done using SPSS software. The statistical tools used for data

analysis includes Percentage, Cross tabulation, Regression, Chi square test. To test the

significance of awareness of return policy of respondents of different age group ANOVA

is obtained and F- Test is applied. To find out the relationship between the various

demographic variables and Online purchasing behavior Chi Square test was used. The

questionnaire consists of Demographic factors like Age, Income, Occupation, Gender etc.

Level of Awareness on Return Policies, level of satisfaction etc

3.4.8 Limitations of the study:

The study has been focused on only one segment of the E-commerce market viz. Apparel

Purchase. The other segments like Jewelry, foot wares etc have not been considered. The

study has been done in select cities like Mumbai, Pune, Bangalore and Delhi, other tier 1,

2, and 3 cities have not been considered.

52 | P a g e
 CHAPTER 4

APPAREL INDUSTRY

4 APPAREL INDUSTRY

4.1 Apparel industry: An overview 54

4.2 Global Apparel industry 56

4.3 Indian Apparel Industry 58

4.4 Future of Apparel industry 62

53 | P a g e
 CHAPTER 4

APPAREL INDUSTRY

4.1 APPAREL INDUSTRY: AN OVERVIEW

The Apparel Industry has seen amazing changes in the past couple of years. The Garment

Manufacturing Industry and the Garment Companies in created countries are by and by

constantly on a post for shabby and practical dress generation. The overall shape apparel

industry is a champion among the most fundamental regions of the economy to the extent

hypothesis, salary, trade and business time wherever all through the world. Apparel

industry has short thing life cycles, enormous thing grouping, precarious and

unconventional demand, long and immovable supply shapes. The dress and apparel

industry produces completed apparel things utilizing both normal and counterfeit crude

material like cotton, silk, wool, lenin, polyester, rayon, lycra and denim. The fundamental

parts peddled in apparel industry consolidate kids pieces of clothing, men’s items of

clothing, dress for women, marriage wear, men’s wedding wear and close attire. The

business has been in a move over the span of the latest 20 years because of significant

solidification in retail, Increasing usage of Electronic commerce in retail, and discount

exchange. The finish of overall charge partitions has incited a move towards

straightforwardness countries having strong and developed Clothing Industry especially

the Asian countries.

As the online fashion retailing industry is growing. Different regions have jumped up in the

previous couple of years to ensure their share of a to a great degree satisfying retail pie. This

resistance has in like manner realized nearly nothing and huge attempts improving to

54 | P a g e
endeavor and stay before a savage pack. This section is moreover pulling in capital. As

demonstrated by a paper appropriated by Technopak, a consultancy firm (2013), titled

'Apparel E-following in India', the $130-million apparel "e-retailing space" in the country

has pulled in endeavors worth $70 million, or 40% of the total financing Indian online

retailers got in the previous two years. there are to be sure numerous business visionaries

who are excited about the portion which offers high style and attire brands on the web.

Offering an organization that spotlights on any of these could help such dares to get that

edge. It routinely incorporates an enthusiasm for logistics, yet there is constantly the

option of starting pretty much nothing and becoming later. The growth of apparel

industry is shown in the following figure.

Source: Ministry of Textile

Figure: 4.1

55 | P a g e
4.2 GLOBAL APPAREL INDUSTRY:

Despite the current overall money related downturn, the overall apparel industry

continues creating at a strong rate and this, joined with the nonattendance of trading costs

for consumers and great thing partition, infers that opposition inside the business is near

direct. The apparel business is of marvelous essentialness to the economy with respect to

trade, work, wander and pay wherever all through the world. This particular industry has

short thing life cycles, boundless thing partition and is depicted by inconceivable pace of

intrigue change consolidated with rather long and resolute supply frames.

In reality, even dug in brands need to endeavor to keep up their share of the market.

Consumers are asking for more adaptable wear with more broad handiness, which suggests

retailers continue making new styles of apparel for men and women. Apparel industry speaks

to a dynamic segment in the worldwide exchange. The execution of Asia-pacific locales like

China, India, Hong Kong, Philippines, Indonesia, and Bangladesh in the apparel division is

dumbfounding. China is the biggest producer and exporter of apparels.

India’s piece of clothing fare division has developed significantly since the end of quantities.

Worldwide exporters take a gander at Turkey, South Korea and Mexico as interchange

markets to China. Because of a bounce back in FDI, Indonesian market has a sound pace.

Notwithstanding the opposition from China and India, Bangladesh execution is discernible in

the post-standard period. Philippines apparel trades have a decent market in USA.

Solidification through mergers and acquisitions makes open doors for economies of scale.

Shopper knows about the present form inclines through current medias like TV and Internet.

New business methodologies are received by the apparel producers to upgrade

56 | P a g e
exchange. The business is relied upon and evaluated to develop by a wide margin and

create a lot of income and work in a worldwide viewpoint.

Rising government focus and great plans is provoking improvement in the materials and

dress industry. The Ministry of Textiles is enabling endeavors through growing base on

arrangements, for instance, Technology Up-degree Fund Scheme (TUFS). To propel

clothing conveys, 12 zones have been embraced by the organization to set up garments

parks for admissions. As indicated by the twelfth Five Year Plan, the Government

courses of action to give a budgetary support of US$ 4.25 billion to materials.

Encouraged commerce with ASEAN countries and proposed simultaneousness with

European Union will in like manner help bolster conveys. The legislature has amplified

the obligation downside office on every textile item and expanded rates now and again

for one year to lift trades in the area. The administration is additionally wanting to lead

roadshows to advance the nation's textiles in non-conventional markets like South

America, Russia and select nations in West Asia.

The normal Indian purchaser who shops online decides to in view of "expanding time-

poverty, evolving way of life style, accommodation and adaptability of shopping and

very importantly alternative of free home conveyance," as per the Technopark paper.

Real Trends in Apparel and Clothing:

Overall piece of attire costs are regarded at more than US$310 billion a year, of which

the world's fundamental 15 apparel exporters speak to more than 80%.

China keeps on working up its material and clothing exchanges hate of the re-weight of

norms by the United States, Europe and some other making countries till December 2008

as a short-lived shield measure on tolls from China. The pickup is a direct result of the

57 | P a g e
system of China to divert its apparel rebate objectives from US and EU to other Asian

countries. Making countries in Asia continue developing their Textile Garment Industry on

account of their insignificant exertion era. Beside China, the certifiable gainers of the post-

standard period are India, Bangladesh, Cambodia and Vietnam. India is the second most

supported country after China for material and apparel sourcing. The rising of passages in

India is a direct result of a couple of components like unlimited wellsprings of rough

materials, low work costs, business endeavor and plan capacities of Indian traders, changes in

the ways to deal with open up Indian economy to the outside world et cetera. Bangladesh has

created as a key player in RMG part (Ready Made Garment Industry). 76% of its total

material and pieces of clothing convey benefit begins from the clothing business. The focal

segment behind this is bounteous and poor work drive open here. Turkey and Brazil are the

creating markets for wander by dress creators and dealers. One of the essential beneficiaries

of the material and apparel exchanges dese drop in US imports from China is Vietnam. In the

essential quarter of 2008, offers of Vietnamese attire and dresses in the US market were up

by over 30%. Cambodia's bit of dress industry is continuing to pull in new budgetary

authorities and augmentation its piece of attire tolls. This is a direct result of EU and US

confinements on China and moreover because of its positive 'sweat-shop free' reputation on

work rules. It is the ninth greatest supplier to the American market. Its pieces of attire tolls to

the EU are in like manner rising.

4.3 INDIAN APPAREL INDUSTRY:

The Textile and apparel industry can be completely parceled into two parts - yarn and fiber,

and completed textures and garments (apparel). India speaks to ~14 per penny of the world's

making of material strands and yarns (greatest producer of jute, second greatest

58 | P a g e
creator of silk and cotton, and third greatest in cellulosic fiber). India has the most

important wait restrain (tallying hand looms) with 63 for each penny of the world's bit of

the pie.

The family unit material and attire industry in India is assessed to accomplish US$ 141

billion by 2021 from US$ 67 billion in 2014. Extended invasion of made retail, great

economics, and rising compensation levels are most likely going to drive enthusiasm for

materials. India is the world's second greatest exporter of materials and clothing.

Material and dress conveys from India are depended upon to augmentation to US$ 82

billion by 2021. Readymade bits of garments remain the greatest supporter of total

material and clothing conveys from India, contributing 40 for each penny to total material

and dress exchanges. Cotton and man-made materials were the other critical contributors

with shares of 31 for each penny and 16 for every penny, independently. The material

and apparel portion is a standout amongst the most settled ventures in India. As showed

by the Indian Brand Equity Foundation (IBEF) it is the close-by linkage of the material

business to cultivating (for unrefined materials, for instance, cotton) and the old culture

and traditions of the country, to the extent materials, that make the Indian materials

division unique conversely with comparative endeavors of various countries.

The Indian material industry is assessed around 108 billion dollars and is depended upon to

accomplish 223 billion dollars by 2021. This industry uses more than 45 million people

direct, and 60 million people by suggestion. It Indian Textile Industry contributes about 5 for

every penny to India's (GDP), and 14 for each penny to general Index of Industrial

Production (IIP). The material business is also one of the greatest adds to India's charge with

around 13.5 percent of the country's total admission of 42.2 billion dollars.

59 | P a g e
As per the report also stated that the textile sector has seen a spurt in speculation amid the

most recent five years. The sector pulled in Foreign Direct Investment (FDI) worth US$

2.41 billion during April 2000 to December 2016. There have been major investments

which changed the Indian textile market. Like Raymond Group has marked a

Memorandum of Understanding (MoU) with Maharashtra government for setting up a

textile assembling plant with a speculation of ₹1,400 crore (US$ 208.76 million) in

Maharashtra's Amravati area. They have also cooperated with Khadi and Village Industries

Commission (KVIC) to offer Khadi-checked readymade articles of clothing and texture in

KVIC and Raymond outlets crosswise over India. Max Fashion, a piece of Dubai based

Landmark Group, plans to grow its business system to 400 stores in 120 urban communities

by contributing ₹ 400 crore (US$ 60 million) in the following 4 years. Trident Group, one of

the main producers and exporters of terry towel, home textile, yarn and paper in India, has

gone into an organization with French firm Lagardere Active Group, to dispatch a superior

scope of home textiles under the prestigious French way of life brand Elle Décor in India.

Dependence Industries Ltd (RIL) arrangements to go into a joint wander (JV) with China-

based Shandong Ruyi Science and Technology Group Co. The JV will use RIL's current

textile business and conveyance arrange in India and Ruyi' s cutting edge innovation and its

worldwide reach. Many E-commerce companies have banded together with India Post to

mutually take a shot at bringing a huge number of weavers and craftsman through its site.

Welspun India Ltd (WIL), some portion of the Welspun Group has divulged its new turning

office at Anjar, Gujarat - the biggest under one rooftop in India. The extension extends

mirrors the ethos of the Government of Gujarat's current 'Homestead Factory-Fabric-Fashion-

Foreign' Textile Policy, which is gone for reinforcing

60 | P a g e
the whole textile esteem chain. The Indian government has come up with various export

promotional strategies for the textile sector. It has likewise permitted 100 percent FDI in

the Indian textiles division under the programmed course.

The key activities declared in the Union Budget 2017-18 to support the textiles division

are as follows:

Urge new business visionaries to put resources into areas, for example, knitwear by

expanding assignment of assets to Mudra Bank from ₹1,36,000 crore (US$ 20.4 billion) to

₹2,44,000 crore (US$ 36.6 billion).

The Government of India arrangements to present a super bundle for the powerloom area,

which will incorporate social welfare plans, protection cover, group advancement, and

upgradation of out of date weaving machines, with tax cuts and advertising support,

which is required to enhance the status of energy linger weavers in the nation. The

Ministry of Textiles has signed Memorandum of understanding (MoU) with 20 E-

commerce business organizations, which aimed at giving a stage to craftsmans and

weavers in various handloom and workmanship bunches the nation over for offering their

items straightforwardly to the consumer.

The Union Minister for Textiles initiated Meghalaya's first-since forever apparel and piece of

clothing making focus to make work openings in the locale. The Union Minister for Textiles

likewise specified Meghalaya has been authorized ₹ 32 crore (US$ 4.8 million) for

advancement of handlooms. The Government of India has also declared a large number of

work cordial changes aimed at creating around 11.1 million jobs in apparel and made-ups

divisions, and expanding textile fares to US$ 32.8 billion and venture of ₹ 80,630 crore (US$

12.09 billion) in the following three years. The Clothing Manufacturers' Association

61 | P a g e
of India (CMAI) has signed MOU with China Chamber of Commerce for Import and

Export of Textiles (CCCT) to investigate potential regions of common co-operation for

expanding apparel exports.

The Government of India has begun advancement of its 'India Handloom' activity via web-

based networking media/Social media like Facebook, Twitter and Instagram with a view to

interface with consumers, particularly youth, to advance fantastic handloom items.

4.4 FUTURE OF APPAREL SECTOR:

The worldwide apparel market is continually changing, endeavoring to adjust to consumer

patterns and new innovation that will permit the consumers shopping knowledge to be more

pleasant and ergonomic. Apparel makers now focus more on the promoting and marking of

their items. A marked item offers itself in the market. Less exertion is expected to advance a

marked item as the buyer incline now a day is inclining towards securing marked things. A

few firms look for converging with different firms to support in the aggressive market. Some

different firms, aside from generation likewise move into different capacities like,

warehousing, entering the retail showcase and so forth. Computer aided designs have

additionally accommodating in circling new and most recent designs over the globe. These

progressions in innovation and adaptable techniques of the apparel ventures empower them to

meet the developing rivalry and offer in vogue pieces of clothing at a worthy cost.

As per the report generated by India Brand Equity Foundation, March 2017, The future for

the Indian textile industry looks encouraging, floated by both solid household utilization and

in addition trade request. With consumerism and discretionary cashflow on the ascent, the

retail part has encountered a fast development in the previous decade with the passage of a

few global players like Marks and Spencer, Guess and Next into the Indian market.

62 | P a g e
The sorted-out apparel fragment is relied upon to develop at a Compound Annual Growth

Rate (CAGR) of more than 13 for each penny over a 10-year time frame.

The Indian cotton textile industry is relied upon to feature a steady development in

FY2017-18, bolstered by stable info costs, sound limit use and enduring local demand.

The Textile Garment Industry is gathered in the hands of vast retail firms who search for

couple of merchants with mass requests and in this manner, decide on vertically

incorporated organizations. Henceforth, there is a requirement for incorporating the

operations from turning to clothing making by the sourcing nations with a specific end

goal to pick up preferred standpoint from the changed situation. Both, the exchange

abilities and delicate aptitudes, viz., outline capacities, textile innovation, management

and arranging aptitudes will likewise be critical determinants.

India's Garment industry is an efficient endeavor and is likewise best in the world. The

clothing industry constitutes planners, producers, exporters, providers, stockists, and

wholesalers. Indian industry has bended out a specialty in the worldwide markets and

earned a notoriety for its sturdiness, quality and magnificence. today's changing buyer

inclinations, purchasing marked apparel and form embellishments, real blast in retail

industry, individuals shopping at divisions and rebate stores, shopping centers and E-

commerce sites with rising discretionary cashflow, government strategy concentrated on

quick track textile fare development and goal-oriented objectives have made a few

venture openings in India.

In future, the elements that will influence the ascent or fall of the Clothing Industry of

sourcing nations incorporate work models, levy inclinations, access to textiles and supplies,

political and monetary soundness among others. With the expansion sought after for

63 | P a g e
execution apparel, the divisions like Industrial Clothing and Sports Wear will encounter

development and because of the expanded design cognizance all inclusive, form apparel

will likewise observe an upward pattern.

64 | P a g e
 CHAPTER 5
CONSUMER’S PURCHASING
BEHAVIOUR

5.1 Consumer behavior for online shopping 67

5.1.1 Consumer’s attitude towards online shopping 68

5.1.2 Consumer’s online shopping decision making 69

5.2 Attributes of consumer behavior for return policies 69

A new paradigm shift of consumer purchasing

5.3 70
behavior w. r to decision making
5.4 Consumer buying behavior: Online apparels 71

Relation between Return Policies of E-commerce

5.5 72
Business and Consumer buying behavior

65 | P a g e
 CHAPTER 5
CONSUMER’S PURCHASING BEHAVIOUR

Walters (1974), expressed that "A consumer is a person who buys, has the ability to

purchase, merchandise and ventures offered available to be purchased by promoting

establishments with a specific end goal to fulfill individual or family unit needs, needs, or

longings." He additionally clarified the lead of consumer as: "The procedure whereby people

figure out if, what, when, where, how, and from whom to buy products and enterprises."

Schiffman and Kanuk (1997: 648) clarify consumer purchasing as: "The behavior that

consumers show in searching, obtaining, utilizing, assessing, and discarding items,

administrations, and thoughts." According to Schiffman and Kanuk (1997: 6-7), there are two

sorts of consumers; Personal and Organizational consumers. Individual consumers buy items

and administrations for individual or family unit intrigue or as a gift to another person.

Individual consumers, in this manner, purchasing for ending utilization. Hierarchical

consumers then again buy items and administrations to run a machine, in close productive

and non-helpful associations, government associations and foundations.

Consumer Purchasing behavior is the mix of a consumer's states of mind, inclinations,

and basic leadership prepare when the consumer is acting in the commercial center to buy

a decent or administration. The standard behavioral model of consumer buy basic

leadership is issue distinguishing proof, data investigate, assessment, buy, and post-buy

assessment. Four agent sorts of consumer practices when making a handle incorporate

complex purchasing, periodic purchasing, cacophony diminishing purchasing, and

assortment looking for purchasing.

66 | P a g e
The variable "consumer’s satisfaction' additionally assumes an interceding part. While

seeing positive internet shopping background feelings like happiness, loving and

fulfillment emerge, due to website quality, with results for consumers' more buy and less

return conduct. Negative internet shopping encounters prompt to the ascent of feelings

like disappointment, frustration and disappointment, likewise with outcomes for

consumers' not so much buy but rather more return conduct. The variable "consumers

satisfaction' goes about as a middle person, which speaks to the generative instrument

through which the central free factor 'saw quality (validity, aptitude, dependability) of

sites of online apparel shops' can impact the needy factors 'e-consumers' clothing buy

conduct' and 'e-consumers' apparel return conduct'.

In this manner, e-consumers' apparel buy conduct and e-consumers' clothing return

conduct can be anticipated and clarified by seen apparel return policy, by saw site quality

and by the interceding variable "consumer’s" fulfillment'. The needy variable 'e-

consumers' clothing return conduct', can likewise be fractional anticipated and clarified

by the interceding variable "consumers" apparel buy conduct', while controlling for e-

consumers' apparent return policy.

5.1 Consumer behavior for online shopping:

Consumer purchasing behavior is the entirety of a consumer's attitudes, preferences,

intentions, and decisions regarding the consumer's behavior in the marketplace when

acquiring an item or service. Families, friends, sororities, city and professional

associations. Any gathering that affects a person's attitude and behavior. Consumer

purchase decision process: Behind the visible demonstration of making a purchase, lies a

decision that must be investigated. The purchase decision process is the stages a buyer

67 | P a g e
passes through in settling on choices about which items and services to purchase. There are

five stages of consumer behavior: (i) problem recognition (ii) data search (iii) alternative

evaluation (iv) purchase decision (v) post purchase behavior. Culture likewise determines

what is acceptable with item advertising. Culture determines what people wear, eat, reside

and travel. Social values in the US are great health, education, independence and freedom. In

American culture time shortage is a developing problem. IE change in meals. Enormous

effect on international marketing. Consumer behavior denotes to the emotional and mental

process and the observable behavior of consumers amid search of item, acquiring process and

post utilization of a product or service. Consumer behavior includes investigation of how

people purchase, what they purchase, when they purchase and why they purchase. It mergers

the elements from Psychology, Sociology, Sociopsychology, Anthropology and Economics.

(Bhattacharya, C.B. &Sen, S., 2003).

5.1.1 Consumer’s attitude towards online shopping:

Consumer's mentalities toward internet shopping have picked up a lot of consideration in

the exact writing. It is trusted that buyer states of mind will influence aim to shop on the

web and in the long run whether an exchange is made. It alludes to The buyer's

acknowledgment of the Internet as a shopping channel and Consumer mentalities toward

a particular Internet store i.e engagement in shopping sites. Usually, shopping online is

measured by buyer's readiness to purchase and to return for extra buys and it adds to

consumer’s dependability and loyalty. Consumer's expectation to shop online is

decidedly connected with state of mind towards Internet purchasing, and impacts their

basic leadership and acquiring conduct. There is proof of complementary impact between

expectation to shop on the web and consumer loyalty.

68 | P a g e
5.1.2 Consumer’s online shopping decision making:

Web based shopping incorporates information seeking, correlation of choices, and

decision making. The outcomes bearing on this element straightforwardly impact

purchaser's shopping behavior or conduct. Furthermore, there gives off an impression of

being an effect on consumer’s satisfaction. Potential consumers seem to utilize a two-

arrange prepare in achieving buy choices. At first, consumers commonly screen a huge

arrangement of items keeping in mind the end goal to recognize a subset of promising

choices that seems to address their issues. They then assess the subset in more

noteworthy profundity, performing relative examinations crosswise over items in view of

some attractive properties and settle on a buy choice.

5.2 Attributes of consumer behavior for return policies:

Returns have become both an ordinary piece of the shopping process and business as

common for retailers, representing a little over 8 percent of retail sales. When it comes to

returns, disappointment isn't the main driver—other components, for example, buyer's

remorse, are consumer driven. Another driver of returns is the way that consumers don't

generally evaluate the item (e.g., attempting on the item) before purchase. While

computerized purchases lend themselves to post-purchase evaluation, several

interviewees (especially females) indicated a preference for attempting on an apparel

item at home instead of in a store—regardless of the nature of the store dressing room. As

consumers abstain from dressing rooms, they increasingly view time spent shopping

inside a store as an expense rather than an investment.

69 | P a g e
However, it is not simply apparel that is experiencing exceptional yield rates and retailers

are at any rate incompletely responsible. As a response to the competitive environment,

numerous retailers promote liberal return policies—unlimited return windows and "no

questions asked"— trying to lure consumers and accelerate purchases.9 Consequently,

the barriers are disintegrating, both in terms of return polices themselves and the social

standards pertaining to returning merchandise. Many researches, recommendations and

reviews, and returns are toppling conventional shopping and empowering consumers at

each phase of the purchase process. Astute retailers, thusly, are creating opportunities to

resonate in the hearts and brains of their consumers.

5.3 A new paradigm shift of consumer purchasing behavior w. r to decision making:

One thing needs to be highlighted is that consumer behavior does not end with purchase

of merchandise or service, but rather additionally post purchase activities are included in

consumer behavior. A consumer takes decisions based on numerous criteria. However,

the triggers of consumer purchases happen much before the genuine purchase itself. This

is where marketing has its impact. Marketing and Advertising hope to change or affect

the consumer purchasing behavior, so that the consumer prefers purchasing the result of

an organization he is well aware of (and one which has been well marketed).

However, in the event that we need to take a gander at the consumer purchasing behavior of

the 21st century, we have to acknowledge that consumerism is assuming a noteworthy role in

their decision making. The consumers are getting used to their regular brands and they barely

move from these brands. In like manner, there are three levels of involvement of a consumer

towards the purchase of a brand. Depending on these levels of involvement,

70 | P a g e
consumer purchasing behavior may shift. Everything begins when a consumer realizes a

need or a problem.

5.4 Consumer buying behavior: Online apparels:

To be a successful seller of items and services, associations need to understand consumer

needs and behavior and draft their marketing strategies to incorporate such behavioral

needs of consumers. The Indian economy has become over the most recent 10 years with

new employments created in the ITES sector, Biomedical, Automotive engineering,

Apparel assembling and Civil engineering. The development is emphatically led by

Information Technology Enabled Services (ITES); this is supported by the education

sector with increase in the number of students enrolling for higher education and large

numbers of students graduating every year in this way creating a large pool of technical

and managerial manpower. The regular workers people segment has developed since the

economic development and it has benefited middle class and upper middle class people.

Due to the increase in the number of working people and considerable raise in income,

spending power has increased over the years, and especially the youthful Indians in the

age of 15 – 25 like to shop more.

Apparel is a very typical item category due to its high perceivability. People will often make

suspicions about a person's self-concept essentially on the premise of his/her garments

(Soloman and Rabolt, 1999). Self-concept is a dynamic structure that changes as indicated by

the nature of the social environment or circumstance (Banister and Hogg, 2006). Consumers

will change their utilization behavior based on a current change in their self-concepts

(Banister and Hogg, 2006). The typical nature of dress as a visual expression

71 | P a g e
of self-concept can incorporate different apparel styles, brands, retailer outlets and

memberships specifically subcultures (Soloman and Rabolt, 1999).

5.5 Relation between Return Policies of E-commerce Business and Consumer buying

behavior

Returns are tedious and a foundation of web based business. Rather than attempting to battle

returns, organization can hold onto them as a chance to learn, enhance, and offer a moment

to-none understanding for their consumers. Negative return encounters can rapidly indicate a

large number of dollars of lost future deals. Consumers that need to pay for their own

particular returns won't return to business as well as they'll be vocal about it, as well. A

consumer-friendly merchandise exchange and a consistent path for consumers to trigger

returns, organization have effectively constructed mark confide in—a key fixing to bringing

the deal to a close and developing their business. Eventually, they will probably hold the

consumers and mellow the pass up giving a predominant return involvement. As e-commerce

continues to develop, so do the competition and expectations from consumers. To meet these

challenges, e-tailers need to become more streamlined and understand the behavior of their

consumers. A glad consumer is a rehash consumer. Also, for reasons unknown, a great deal

of that joy relies on upon organization's profits approach. In the event that consumers don't

care for online business' arrival approach, they'll likely lose the deal to an organization that

offers a shopper neighborly merchandise exchange. When attempting to identify "great"

consumers, managers often ignore those who return items, or may even consider those

consumers non-ideal, decreasing the resources devoted to them. In the long haul, however,

acceptable item return experiences can really create a valuable

72 | P a g e
long haul consumer whose commitments far outweigh the associated costs, as per a new

review in the Journal of Marketing Research.

73 | P a g e
 CHAPTER 6

E-COMMERCE

6.1 E-commerce: An Overview 75

6.2 Global Scenario of E-commerce Industry 78
6.3 Indian scenario of E-commerce Industry 81
6.4 Factors affecting Indian E-commerce growth: 84
6.4.1 Commercial factors 85
6.4.2 Technical factors 86
6.4.3 Demographic factors 86
6.4.4 Social factors 87
6.4.5 Other factors 88
6.5 E-commerce: A business strategy 89
6.6 Fashion E-commerce sector 89
6.7 E-commerce’s potential in Metropolitan cities 92
6.8 Future of E-commerce 93

74 | P a g e
 CHAPTER 6
E-COMMERCE

6.1 Overview of E-commerce:

E-commerce (Electronic Commerce or EC) is the obtaining and selling of merchandise

and enterprises, or the transmitting of assets or data, over an electronic network,

essentially the internet. The E-commerce transactions for selling of clothes, shoes, books,

ticket booking, hotel booking etc. E-commerce transactions do not just take place

between Conusmer and business but it can be between businesses, households, people,

governments and other open or private affiliations. The term e-tail is likewise sometimes

used in reference to value-based processes for online shopping.

As Suvishesh Valsan, Assistant Vice President, Research, JLL India says: "India is currently

witnessing a wave of reforms the extent that retailers are concerned. Whether its opening-up

of foreign direct investment (FDI) for single-brand retailers, the presentation of level-playing

rules in the e-commerce sector or several states contemplating a round the clock retail

strategy, there are a large group of changes coming." The progress of E-commerce has made

a huge effect in the movement of merchandise. Varieties of items are made accessible to

consumers by means of the electronic means of business dealings widely termed as Business

to Consumers exchanges. Technology has been the main impetus behind the Indian e-

commerce revolution. Smartphone penetration is at record-breaking high and internet

connectivity is likewise on the rise in an economy where income levels have demonstrated a

steady, if unspectacular rise. More people are heading online to shop: the Indian e-commerce

industry generated $17.5 billion sales in 2015, with a right

75 | P a g e
around eight-overlap development since 2012. The overall share of e-commerce in Indian

retail is expected to bounce from 2 percent to 10 percent by 2019. The evolution of E-

commerce considerably affects the sales of a wide range of items. The wide scopes of items

like hardware, design items, home stylistic layouts, solutions, basic need things, books, CDs

and so forth with various elements, styles, tones and sizes which are at present accessible to

an extensive variety of consumers cover the whole socioeconomics. The least expensive and

a helpful mode to buy such things which is compensating for lost time the vibes of

adolescents and involved class today is web through web based shopping. The presence of

numerous E-commerce organizations has incepted the movements with various

cost for an alternate brand in the conduct of consumers.

Figure 6.1

According to Nandan Nilekani, Indian technocrat and billionaire co-founder of Infosys,

“India is the last big thing in e-commerce.” U.S. firms like Amazon and Ebay have battled

76 | P a g e
against Chinese firms like Alibaba in China, while all the while keeping the Chinese

under control down home in the U.S.

Web based business has changed ordinary shopping past affirmation. It is such an

incredible measure of superior to anything whatever other strategy for shopping that it

has as of now pulled in a various a huge part of E-commerce-significant others. If a few

years back E-commerce was a famous expression, now it has turned into the request of

the day. Individuals appear to shop for all intents and purposes wherever – at their

working environments in the midst of lunch times, in surge hour when there is nothing

else to do aside from switch on their convenient workstations and start surfing.

Internet business today picked up so much noticeable quality since its basic advances are

developing at goliath impression. We are even offered to "feel" the thing with a 3D

mouse to better comprehend its shape, size and surface. Why go some place out when

you ought to just require a framework, pick the transportation course, set up your feet and

hold up till the request is conveyed perfect to your gateway track?

Online business today offers so much luxury that even acknowledged stores have

officially exceptional the alert. Yet, every one guarantee that it is far for an E-commerce

to reimburse "square and-solid" stores, it has each likelihood to occur later on. Internet

business which we are seeing now gets such an incredible measure of enterprise into our

lives that it is appreciated by the entire online gathering.

Internet business now has a few impediments anyway they say “that feelings of dread

each fence ought to never go a birding”. A huge amount of consumers do persevere

minuses since they trust the online world and need it to be a superior place. Web based

business now reflects what is been made at the very day break of electronic commerce.

77 | P a g e
6.2 Global scenario of E-commerce Industry:

The world-wide e-commerce mart is highly competitive because of the personality of

many large established players. Intense rivalry prevails in this market where the vendors

oppose in terms of product cast, recompense, delivery and reward options, return policies,

and interest and propose. To increase their profit margins and extend their geographic

person, vendors are making investments in plot, designing, and developing their benefit

and acquiring new gamester. The solid proposition of the established vendors and far-

reaching break-even periods will restrict the ingress of recent libertine in the market over

the predicted period.

The huge shift in E-commerce growth towards Asia has weighty ramifications for E-

commerce brands. To take advantage of the trends they'll need to go international with

their E-commerce- something easier said than done. The beauty of E-commerce is you

don't needs emergency any physical infrastructure to start cell to a new country. With

marine rank cheap, international surrender becoming trite and websites making borders

increasingly irrelevant, it's not as hard as it once was to batter into new countries and sell.

However, that should not bid complacency. Well translated websites, strategies in note

with provincial expectations and the use of no VAT exhort to subsidize delivery charged

are all of accurate importance.

Retail E-commerce sales in North America will retire 15.6% this year to stretch $423.34

billion, maintaining the region’s condition as the Earth’s second largest sectional E-

commerce bazaar. The region will see congruous double-digit vegetation through 2020,

breeze by increased spending from existing digital buyers, expanse into new categories

such as grocery, and growth m-commerce sales.

78 | P a g e
The lengthening data available to marketers has massively increased their ability to slice

consumers over the past few years, but increased talent doesn't instantly translate into

increased effectiveness. Sometimes marketers can get too caught up in marketing sound

and buzzwords and patting each other on the back, and decline to see what the consumer

really sees. Building participation enables a crew to have a dialogue with their consumers

in a way that goes beyond just selling product – if they trust you they are more likely to

muse that your motives are beneficial to them. Community-supported retail executives

share their view on how community is alter how they obtain and retain loyal consumers,

swarm-fountain merchandising and other means to collision their international E-

commerce strategies. Vendors in the fair are switching from website platforms to app-

only services owing to the increase in online workshop transactions through mobile apps.

Shifting to app-only can be a risky plight for vendors as many underdeveloped countries,

such as Africa, India, and South Korea countenance momentous issues of internet

connectivity, which restricts the consumers from an online strive. The e-familiarity

vendors are advent up with a lighter conversion of the apps that work even with lingering

internet connectivity. They are focusing to uncover spillikin versions of their mobile sites

that support browsing even at moderate internet connectivity likely Google, Facebook,

and LinkedIn.

Technavio’s market research analyst predicts the planetary e-commerce market to wax

steadily and post an impressive CAGR of more than 19% by 2020. One of the mayor factors

contributing to the growth of the e-interchange market is the distinct cast in several product

segments such as electronic gadgets, garments, books, and cosmetics. These categories in the

e-commerce websites are methodically updated with latest offerings, which not only

79 | P a g e
draw new consumers but also retains consumer fealty. Also, these shopping websites allow

consumers to make multiple payment options through credit and debit cards, electronic

wallets, shining banking, brass on freeing (COD), and crypto currency. To withstand the

growing jealousy in the traffic and defend buyer allegiance, several e-commerce companies

are inducing incentives like free tonnage to consumers. They are also proffering hassle-free

traffic and return policies to extend their brand thesis. Among all geographies, APAC will be

the fastest ontogeny province in the e-commerce bazaar amid the forecast period due to the

increasing internet penetration and acquiring government of the mean division populace. The

regional vendors rule the region's market and restrict the influence of foreign gamester,

thereby keeping up the revenue generation. With the developing reception of brilliant devices

and latest computerized technologies, the station is anticipated to develop at a tremendous

CAGR of more than 25% over the next four years. There is tremendous amount of growth

has been noticed recently in E-commerce businesses. The growth show that online business is

flourishing and taking a greater cut of the general retail sector and is getting to be noticeably

far quicker than retail deals in coming years. (Internet Retailer, 2011). Forrester's reports built

up that in the United States web based business came to $200 billion income in 2011 which

equivalents to 9% of the total retail deals. In addition, in UK online business take 10% of

total deals and comprehensive electronic retailing achieves 15% to 20% of total deals (Rigby,

2011). Along these lines, organizations are thinking about web based web based business

vital which offers ascend to deals. The Asia-Pacific locale is as of now the biggest E-

Commerce showcase on the planet, outflanking Europe. While China keeps on driving the

race, the Indian E-Commerce Industry isn't far behind. As demonstrated by a report by

Forrester, India is set to wind up plainly the

80 | P a g e
quickest creating market in the Asia-Pacific district with a normal improvement rate of

more than 57% between 2012-2016.

6.3 Indian scenario of E-commerce Industry:

Indian E-commerce business has grown up extensively due to the large percentage of

population which has easy access to an internet, a current presentation of 3G and 4G

association, touchy development of Smartphone, rising way of life, accessibility and

accommodation of getting significantly more extensive item go contrasted with what is

accessible at the physical retailers, cost upper hand and advancement of different sites.

Throughout the years, E-commerce industry has developed into multi-billion industry.

With the creating inclinations and expanding web infiltration for E-shopping, India will

well while in transit to produce $100 billion online retail income out of which $35 billion

will be through plan web based business in the year 2020. In light of a current Google

examine, Industry Director-E-commerce and Media, Google India, Nitin Bawankule,

(2015) each third shopping seek on Google is frame related and the inquiries on form are

creating at 66 percent year-on-year.

As demonstrated by Google India, there were 35 million online customers in India in 2014

Q1 and were relied upon to cross 100 million stamp by end of year 2016. Gadgets and

Apparel are the huge supporters as far as deals. 6 billion, the e-retail fragment was worth

US$2. India’s internet business market was worth about $3. 8 billion in 2009, in 2013 it

expanded up to $12. 3 billion; Wikipedia.

81 | P a g e
 Figure 6.2

According to the report created by India Brand Equity Foundation (IBEF), February

2017, "The Indian retail industry has created as a standout amongst the most dynamic and

snappy paced businesses because of the passage of various new players. It speaks to more

than 10% of the country's GDP and around 8% of the business.

Further, India’s web based business market is required to achieve US$ 220 billion as far as

Gross Merchandise Value (GMV) and 530 million customers by 2025, drove by speedier

speeds on dependable telecom systems, quicker determination of online administrations and

better assortment and furthermore accommodation. India's Business to Business (B2B)

internet business market is relied upon to achieve US$ 700 billion by 2020. Indian online

business deals are required to achieve US$ 120 billion by 2020 from US$ 30 billion in

FY2016. India's retail market is required to achieve US$ 1 trillion by 2020 from US$ 600

billion in 2015, because of increment in pay, urbanization and attitudinal developments of

consumers. There are elite measures about advancement of Indian online business markets.

82 | P a g e
According to a joint report by India Direct Selling Association (IDSA) and PHD, India's

immediate offering industry is relied upon to achieve a size of Rs 23,654 crore (US$ 3.

Online retail is relied upon to be at standard with the physical stores in the following five

years. India is relied upon to end up plainly the world\'s speediest creating E-Commerce

showcase, driven by strong interest in the division and brisk increment in the quantity of

web clients. While the general retail market is relied upon to create at 12%, present day

exchange would grow twice as fast at 20% for every annum and standard exchange at

10%. 51 billion) by FY2019-20.

In India, E-following can create to US$ 76 billion dollars by 2021. This would be

possible if a significant bit of India's nation populace is also brought under the wrinkle of

the Internet, and has permission to online shopping. E-retailers moreover need to confer

confide in online consumers with affect transport of stock, refunds for mass purchases,

movement of significant worth items, et cetera. The Indian buyer market is set to

accomplish a substitute look. Progresses that guide in directing stock, getting bargains

data, envisioning demand and making customized energizing to reduction time-to market

are presumably going to get observable quality. According to the report worldwide

installments firm Worldpay, December 2016, The Indian online business market is set to

outperform the US and transform into the second greatest on the planet in less than two

decades, conflicting with China for the numero position. The report said the electronic

business market is depended upon to grow exponentially with creating markets driving

the charge –particularly India, where the bit is foreseen to create by 28 for every penny

for consistently from 2016 to 2020. The report additionally included that India will be the

83 | P a g e
world's biggest E-commerce advertise by 2034 because of enormous web infiltration,

take-up of cell phones, increment in populace and attention to E-commerce organizations.

There is tremendous increase in young people between age of group of 25-35years

shopping via online by using smartphones and this is expected to continue in coming

years. India is a tremendous E-Commerce commercial center now with each age amass

easily executing on the web – all the more frequently leaning toward shopping on the

web as opposed to going by disconnected stores for a scope of decisions and offers.

Internet business industry is developing at an astonishing rate in India and is relied upon

to represent 1.61% of the worldwide GDP by 2018.

6.4 Factor affecting Indian E-commerce Growth:

Indian ecommerce has sprouted into an intense industry. The latest couple of years have seen

enormous advancement in the quantity of online clients and their shopping requests. Here is

an entire record of India's ecommerce example of overcoming adversity and fundamental

assumes that concentrations to its future improvement. This colossal improvement and

drifting looking affinities have brought a surge of later on-line firms that have made a

focused air. the eye grabbing advancements, enticing offers and discounts, free gifts,

unlimited arrangements destinations, straightforward return & trade and a lot of such

accomplishments square measure the consequences of this era rivalry. This enormous

advancement and drifting seeking penchants have brought a surge of later on-line firms that

have made an aggressive environment. The eye getting advancements, enticing offers and

refunds, free enrichments, unlimited arrangements locales, straightforward return &

trade and a lot of such accomplishments square measure the aftereffects of this era rivalry.

Various financial specialists, specialists and scientists follow

84 | P a g e
back its root to the online execution in India however there are other a few factors also,

similar to increment in Internet control, the inflow of an extensive measure of installment

decisions with charge & Mastercards, Smartphone infiltration and so forth.

6.4.1 Commercial Factors:

Less expensive Rates - The size on that ecommerce works is enormous so merchants can

supply pleasant refunds and cut costs. It energizes a financial plan watchful purchaser and

the self-assertive consumers.

Propelled Logistics - Advanced giving plans have made the conveyance strategy less

demanding and faster making the general population an impressive measure of energized

with respect to on-line trades. Retailers are sufficiently succeeding in achieving the

doorsteps prior secure.

Section particular improvement - The most basic impact in Indian on-line trades have

been made by the travel business. Around seventy fifth of it's incorporated by lodgings

booking, air ticketing, escape bundles and so forth.

Web Progression - Internet may be a place that licenses clients to search out, look at and

investigate things that satisfy their longings. The less expensive rates of net have

extensively added to drifting E-commerce.

Cell phones business on rise - The expansion in cell phones and tablets request has

pushed the cost down. The market is certain to wind up noticeably much more than 8000

new cell phones are being sold each day. The tablet market is assessed to have sold one

million just in 2013.

85 | P a g e
6.4.2 Technical Factor

The Faster and available web - Advancement in New media innovation has helped the

availability that progressively bolsters the Consumers' needs. Snappy access to 3G and

4G has helped E-commerce dealers to pull ahead in business as well.

Cell phones propelled innovation - The extra innovatively progressed Smartphones have

venture up in light of the fact that the greatest promoter of e-shopping pattern and raised

the net deals figure up. the advantage they convey makes the net looking skill pleasant for

benefactors.

Amplifying versatility - A report uncovered by Ernst and Young expresses that 4G and

cell phone insurgency in Asian country goes to change the substance of media reach in

India. India is asserted to claim one billion remote endorsers, as of May 2012, this

broadening quality has made a condition of illicit relationships wherever achieving

bowed on country Republic of India isn't a trouble any more.

Speedier and less expensive Broadband – 2G, 3G and 4G improvement chain has made a

few netizens in India. Individual's region unit found to possess discovered the favor of

remaining on-line and that is a positive sign for ecommerce utilization.

6.4.3 Demographic Factors

Purchaser state of mind - The accomplishment of ecommerce stages has increased the

trusts of Indian consumers in on-line shopping. They have created an inspirational

standpoint towards on-line commercial center that backings ecommerce business.

"On the web" turns "onlife" today - Virtually every action happens on-line of late,

regardless of whether it's requesting nourishment, mailing a colleague, watching out work

or booking a ticket. the normal time spent per has expanded enormously.

86 | P a g e
Ascend in salary - It's impressively extra to the present ocean change. The spending power

has expanded and other individuals are eager to appreciates more web based shopping.

PC aptitude rate - With general change in training rate, the quantity of people arranged to

PCs is furthermore expanding. Taught people are believed to be a considerable measure

of dynamic in on-line buy than the less instructed bunch.

6.4.4 Social Factor

Impact of Social Media - The social siege on web is pushing the web business by making

the customer savvier. Brands are beating any issues with its potential supporters through

these systems.

Changing style - Urbanization has adjusted the best approach to manage life and

individuals' wishes. According to world relationship, around 30% India's masses lives in

urban ranges and besides the shopping wishes of urban individuals are very higher than

commonplace ones.

Globalization-Development on exchange, economy, correspondence grounds have

prompted a state where individuals think all around and act reliably.

Energetic people - India incorporates an essential segment of youngsters that is

apparently to prevail in sixty fourth by 2020. Henceforth, more youthful era is that the

key issue behind this vast improvement. With most youthful eras creating specialized

school shrewd the eldest of families too are urged to investigate net.

Item offering - The bigger piece of those on-line stores includes apparel and diverse stock

which individuals don't feel troubled to pay on.

87 | P a g e
Media Reach - FM, TV and outside reach in individuals' lives may be a central

explanation behind Indian consumers' creating incline towards on-line looking. It impacts

their searching for propensities to a phenomenal live.

Digitalization - The condition of National advancement and everything being digitalized is

summoning certainty and interest in individuals to go on-line for fulfilling their schedule.

6.4.5 Other factors:

Time Saver – On-line commercial center is looked upon as an advantageous decision

once it includes spare time. There's no compelling reason to take exceptional excursion of

a clamoring calendar and continue running from want to buy to seek out the best.

Everything is fundamentally a tick away which suits the railroad line culture of India.

Cash on Delivery (COD) – The COD accommodation may be a blending issue that gave

soak push to on-line commerce. In most of the nations as their charge/Mastercards zone

unit additional being utilized. In India, many individuals still feel reluctant to share their

MasterCard information on the web; thusly, Cash on conveyance is the favored and

advantageous decision.

Conveyance and Return strategies – The plan of home conveyance and different

decisions snared for Return and trades have developed the shopper base in India.

Unlimited decisions – Indian consumers have simple access to decisions served by

changed Ecommerce. These determinations have spoilt them abundantly and made them

subject to line shopping sites.

88 | P a g e
6.5 E-commerce: A Business strategy:

The concepts of e-commerce and e-market have revolutionized the style industry in a

couple of way. Today there is a great demand in consumer so that immediate response

utilizing the toll-free number, informal organizations and visit system increases the

correspondence between the E-commerce website and consumers. In the greater part of

the cases, contact shapes become the main route for the consumer service. Creating

confidence is the fundamental role for the great consumer service with the goal that it is

convenient for developing the business. This is particularly valid if organizations wish to

create, broaden their deals, and achieve consumers they won't not have come to some

time recently. E-commerce locales empowers organizations of all sizes to achieve their

objective scope of consumers without being physically present. In today's focused

business world, having an online nearness is more basic than at whatever time ago. Since

the ascent of the Internet in the mid to late 1990s, organizations have recorded their

things and administrations accessible to be acquired on the web. Individuals have gotten

on, and many appreciate the advantages and simplicity of having the capacity to peruse

for things on internet business commercial centers from the comfort of their own homes.

In actuality, ecommerce promoting has turned out to be more basic than at whatever time

in late memory for organizations to stay above water. Really, organizations can lose

consumers or income by not keeping up an online nearness.

6.6 Fashion E-commerce:

Today, with increasing needs, ever changing consumer expectations as per standard of

living, and increasing level of competition, rapid technology obsolescence etc, and

Apparel industry is becoming more prone to controllable and uncontrollable risks.

89 | P a g e
 Source: Google India, track.in (onlinesellertips.com)

Figure 6.3

Apparel industry undertakes a critical role in developing a nation's economy in terms of

revenue generation and creation of employment. The business is undergoing an intense

change due to worldwide sourcing and abnormal state of price competition. Favorable

demographic components, rise in disposable incomes, change in consumer behavior and a

significant move towards branded apparel has resulted in a positive development in the

worldwide apparel market. In addition, with the escalating demand with the accessories

makes the Indian apparel market lucrative. The apparel market has undergone series of

changes and opportunities. The challenges related with these opportunities are the

90 | P a g e
indicators of the nations of upcoming apparel market. The attractive range of products,

better brands, constant deals and discounts, price category and Return policies and the

convenience of shopping from home made the consumers addict to this mode. This made

the apparel industry make its presence felt in a short period of time. Research has proved

that clothing sales on e-commerce portals have soared past the expectation at the same

time as surpassing the income of all other classes. B2C growth analysis reviews from

around the arena, in particular India, have proven that the impact of the Internet in

dictating purchases and shaping income patterns has increased extensively. The market

share of commodity distribution in e-tailing as per the report published in 2015 by CRISI,

IAMAI, PwC analysis and Industry experts is shown in the following figure.

Source: Crsil, IAMAI, PwC analysis and Industry experts

Figure 6.4

As per Internet and Mobile Association of India Research in total E-commerce market

Apparel and accessories constitutes for 30% market share. India is seeing an increase in

fashion sector because of the presence of on line purchasing portals with international

91 | P a g e
market. Initially clothing was utilized to shield the human body from ecological conditions.

Later on, as the wheels of time began turning, new patterns rose and assembling of chic

articles of clothing appeared. Apparel industry produces completed the process of garments,

like kid’s pieces of clothing, men and women dress, and other personal clothing.

Producing clothes is a standout amongst the most sought after organizations today.

Trends go back and forth, especially in the design world. Keeping in mind the end goal to

stay focused, clothing makers look to grow their business in different ways. Components,

for example, short item life cycle, unstable designs, flighty market patterns and

motivation buy nature of the consumer are to be given most extreme significance by the

producers to support themselves in the clothing fragment.

Increase in Indian women shoppers and youngsters coupled by the huge demand for

trendy clothes, the future look bright for online clothing. It has been observed that several

relationships exist in online selling environment. In India, e-trade portals have boosted

sales of local apparel. Right from unique variants of ethnic wedding dresses to standard

costumes, the onset of purchasing inside the digital age has brought India’s handicraft

heritage into the limelight.

6.7 E-commerce potential in metropolitan cities:

As a developing economy, India displays a potential market for web based shopping. Web

based business organizations are battling to set up themselves in the Indian market. Erratic

and complex naming of formats and villas implies a complicated physical address structure in

India. The convenience of buying products online, literacy rate of cities, internet savvy

population, home delivery services, changing consumer lifestyles are the major reasons

which are supported by the younger population base of India, have given a boost to the e-

92 | P a g e
commerce business in metropolitan cities. The battle for matchless quality among these

web based business organizations has come to the following stage, with expanding

interest for web based shopping in rustic India. Keeping in mind the end goal to appear

this open door E-trade firms like Amazon, e-Bay, Flipkart and Snapdeal are presently

concentrating on extending business in residential communities and rustic parts of the

nation as it appears an immense open door for these organizations.

6.8 Future of E-commerce:

Along these lines winning future pattern of E-commerce will be the impact of Internet

deals and advancement. Similarly, the propensity will proceed, along many individuals

are detained by work and family unit obligations, while Internet spares a tremendous

measure of time and offers opportunity to pick things at the best costs. To interest more

consumer’s e-bounty proprietors will have not solely to build the quantity of accessible

advantage, yet to give watchful thought to such components looking like alluring outline,

ease of use, engaging items introduction, they ought to perfectly utilize late innovations

for their organizations to wax parts of E-commerce future. The “add up to quality” extent

of E-commerce is in like manner befitting increasingly clear, as the Internet has barred

geological component from the market. Exhibit day Internet deals progressed is the

foundation for glorious E-commerce forward. Deals volumes of on-line stores are more

than equivalent with those of “piece and-concrete” once. To survive, merchant ought to

conform enthusiastically to the new plan. In this way, it doesn’t make a difference any

longer whether your plan is situated in New York or London or in a little burgh. Effective

E-commerce will turn into an idea completely indistinguishable from the web, since e-

93 | P a g e
shopping is winding up plainly more outstanding and basic. In the meantime, extreme

conflict in the circle of E-commerce administrations will hone their advancement. E-retail

holds monstrous guarantee for future. Its retail experience will be unmistakably not quite

the same as block and mortar with the progression of innovation. It's a piece of retail

development that no retailer can deny. The segment is youthful, the business is making

up for lost time quick and the space is swarmed with players who are too new.

94 | P a g e
 CHAPTER 7
RETURN POLICY MANAGEMENT
7.1 Return Policy-A Strategic Initiative 96

7.2 Supply Chain Management 97

7.2.1 Forward Logistic 99

7.2.2 Reverse Logistic 101

7.3 Defining the field of Return Policies 104

7.4 Shift from Return Policy to Customer retention 106

7.5 Impact of Return Management on E-commerce business 107

Return Policies w.r.to Apparel sector of E-commerce

7.6 108
Businesses

7.7 Return Policies: Drives new sales 110

95 | P a g e
 CHAPTER 7
RETURN POLICY MANAGEMENT

7.1 Return Policy-A Strategic Initiative

With the increase in E-commerce business transactions, varieties products are being

offered by companies to stay competitive in this market. Companies value the consumer

than the sale. Application of reverse logistics can make e-commerce businesses more

focused, on the grounds that intensity additionally makes an interpretation of into the

capacity to make and manage predominant aggressive execution (Porter, 1986). Return

policies in an E-commerce environment is very challenging as it simply does not

concentrate on need of consumers but rather additionally limiting the cost and effect of

returns on organization since it has a very huge effect on benefits. Effective returns

management can improve an organization's benefit, enhance consumer relationships, and

be an essential piece of an integrated production network management strategy. Proper

returns strategies can invigorate relationship with key consumers. It can also provide

extra means of positively affecting your company's money related performance and

building stronger relationships with key consumers. Be that as it may, not pondering the

reverse stream of items could mean missing essential opportunities for controlling

organization through extreme times. In the current economic climate, it's hard enough to

manage the forward stream of items to consumers. Furnishing consumers with more and

better return arrangement data can maintain a strategic distance from unwanted returns

and discourage baseless returns.

96 | P a g e
7.2 SUPPLY CHAIN MANAGEMENT:

Logistics normally suggests practices that occur inside the breaking points of a single

affiliation and supply ties insinuate frameworks of associations that collaborate and

encourage their exercises to pass on a thing to promote. It\'s called logistic and supply

chain management and it incorporates those planned activities that offer thing available to

be purchased to people in general and make satisfied consumers. An inventory network is

the related arrangement of individuals, affiliations, resources, activities and advances

required in the manufacture and offer of a thing or organization. Inside the affiliation, the

store organize suggests a broad assortment of pragmatic domains. Moreover, regular

logistics focuses its thought on activities, for instance, acquisition, apportionment,

upkeep, and stock management. A stock system starts with the transport of rough

material from a supplier to a producer, and terminations with the movement of the

finished thing or organization to the end purchaser. The best E-commerce businesses

around the world are finding an able new wellspring of high ground.

With such an extensive number of spots along the creation arrange that can incorporate a

motivating force through efficiencies or lose an impetus through extended costs, real SCM

can manufacture salaries, reduce costs and impact an association\'s principle concern. These

consolidate Supply Chain Management-related activities, for instance, inbound and outbound

transportation, warehousing, and stock control. SCM manages each touch motivation behind

an association’s thing or organization, from initial creation to decisive arrangement.

Sourcing, procurement, and supply management fall under the stock system umbrella, also.

Deciding, creation masterminding and arranging, orchestrate get ready, and

97 | P a g e
customer advantage all are a bit of the system as well. Fundamentally, it furthermore

exemplifies the information structures so essential to screen these activities.

Source: www.googleimages.com

Figure 7.1

SCM is the element streamlining of a business’s supply-side activities to lift buyer regard and

get a high ground in the business focus. SCM speaks to an effort by suppliers to make and

complete supply chains that are as compelling and calm as could be normal considering the

present situation. Supply chains cover everything from era, to thing change, to the

information systems anticipated that would organize these attempts. SCM attempts to

halfway control or association the creation, shipment and movement of a thing. By managing

the store arrange, associations can cut wealth costs and pass on things to the customer faster.

An inventory network management system can lessen the cost and multifaceted nature of the

gathering method, particularly for a producer that uses various portion parts. An apparel

creator, for example, will move unrefined materials into era at

98 | P a g e
first, for instance, surface, zippers and diverse pieces that are used to make articles of

clothing. The producer then gains work costs to run mechanical assembly and perform

other work using the materials. Once the things are done, they ought to package and set

away until they are sold to a customer. A production network management structure can

gage when materials are required and can organize era, and the system can similarly help

constrain the measure of material and section parts that sit on the mechanical office floor

holding up to be used as a piece of creation. This is done by keeping all the more firmly

control of internal inventories, inside creation, scattering, bargains and the inventories of

association vendors. SCM relies on upon the likelihood that about everything that comes

to market happens as a result of the attempts of various affiliations that make up a store

arrange. Regardless of the way that supply chains have existed for quite a while, most

associations have similarly starting late centered around them as a regard add to their

operations.

7.2.1 Forward Logistic:

The part of logistics will keep on holding an extensive wave in this division, because the

achievement of a web based business is characterized by how well they serve and hold

their consumers, which is the real capacity of logistics. In a marketing prudence, logistics

is the management of the stream of things (physical things) between 'the purpose of root'

and 'the purpose of utilization' so as to meet consumer's necessities.

Logistics incorporate numerous angles like item taking care of, creation, bundling,

charging, naming, stock management, warehousing, transportation, money down,

installment, item return and trade, and numerous more things. Be that as it may, the key

part of logistics is to give auspicious and proficient conveyance of merchandise or items.

99 | P a g e
At the point when a consumer is fulfilled, they do visit obtaining and turn into a general

consumer and furthermore wins internet business organizations more consumers for

future buying.

The logistics firms additionally take assistance from unique endeavor versatility

programming projects to deal with certain logistics related issues. These virtual products

deal with the following issues, manage area issues, oversee stock level worries alongside

bundling and satisfaction inconveniences also. Proficient logistics administrations are in

charge of quicker conveyance and development for the organization, that is the reason

eminent web based business organizations regularly incline toward expert logistics

administrations.

Source: Googleimages.com

Figure 7.2

To profit logistics administrations, online business organizations pick outsider logistics

suppliers. Be that as it may, again to stay away from any tumult from outsider logistics

provider, some settled e-rears are likewise going ahead to make their own logistics

transporters. The advantage of framing a possess logistics firm is that it can guarantee

100 | P a g e
speed, exactness, limit item harms and spare a great deal of cash. In any case, it ends up

noticeably hard to oversee in-house logistics that is the reason online business

organizations swing to outsider suppliers to deal with requests, stock, delivering and

returns.

7.2.2 Reverse Logistic:

E-commerce frequently concentrates on the cycle that comes full circle in conveying

merchandise to the consumers. However, there is a whole leg of the ecommerce supply

chain that comes without hesitation after products are conveyed. Since the physical

investigation of an item should not be possible hence there are high chances that item

returns to retailer. Once a cargo shipper begins doing web based business logistics, they

have a need to consider reverse logistics surprisingly. By joining new systems to improve

this procedure, shippers have built consumer retention and add new income streams to the

immediate business past the customary physical channel.

The reverse logistic of materials and of information starts from the consumer to the retail

location. Logistics is portrayed by The Council of Logistics Management as "The route

toward organizing, executing, and controlling the capable, monetarily adroit stream of

rough materials, in-process stock, finished items and related information from the reason

for root to the point of usage with the true objective of fitting in with buyer essentials".

Starting there ahead, the choice must be done on where the things must be sent back. The

qualification is that reverse logistics wraps these activities as they work in reverse.

Reverse logistics is more than reusing compartments and reusing packaging materials.

Redesiging packaging to use less material, or diminishing the essentialness and defilement

from transportation are basic activities, in any case they might be helper to the honest to

101 | P a g e
goodness noteworthiness of general reverse logistics. Reverse logistics furthermore fuses

get ready returned stock in view of damage, general stock, restock, safeguard, audits and

perilous material undertakings, obsolete equipment attitude and asset recovery. The

reverse strategic fundamentally relies on upon whether the reverse stream comprises

essentially of items, or principally of bundling. The developing environmental concern

around the world, have forced retailers to take part in reverse logistics, for example, re-

utilization of items and materials and reusing. For all intents and purposes, a large portion

of the organizations manage returns of some nature as a result of issues, for example,

advertising returns, harm or quality issues, overloads, renovating or remanufacturing.

Taking care of profits present an awesome test for organizations, while by and large turns

into a need for keeping consumers fulfillment to a specific level. Reverse logistics

operations in a supply chain might be considered as a prologue to creative

administrations of an organization's portfolio. They importantly affect a company's vital

execution as far as market viability, and in addition, inside cost effectiveness. Through

reverse logistics advancement, it might be conceivable to extend income through market

development because of record customization, benefit enlargement, and enhanced

consumer loyalty. Reverse logistics is nowadays turning into a range of upper hand and it

gives competitive edge over other companies in the same market place.

102 | P a g e
103 | P a g e
7.3 Defining the field of Return Policies:

The Returns Policy is the situation that covers the circumstance where a consumer needs

to bring an acquired thing back and trade it for money, a substitution item, or store credit.

Returns Policy covers things like the sorts of things that can be discounted, the kind of

plan of action your consumer may get (discount, substitution, or repair), and who takes

care of the expense of conveyance or postage for giving back the things.

A Return and Refund Policy is the situation where E-commerce businesses illuminate

Rogers and Tibben-Lembke (1998) classified the retail items in a reverse logistics stream

as takes after:

• Close-outs: first quality items that the retailer has decided to no longer convey;

• Buy-outs or "lifts": where one manufacturer purchases out retailers' supply of

competitor's item;

• Work outs: first quality seasonal, occasion merchandise;

• Surplus: first quality overstock, overrun, marketing returns, moderate moving

merchandise;

• Defective: items discovered to be defective;

• Non-Defective Defectives: items thought incorrectly to be defective;

• Salvage: damaged items

• Returns: items returned by consumers.

• Return management more often than not includes the accompanying pieces of

data:

• How numerous days they have to return an item?

• How will they receive the refund (credit or replacement)?

104 | P a g e
 • If you offer refunds for advanced items or in-application purchases

• Who pays for transportation to return the item?

• And so on

It's a very ground breaking strategy – if their executives essentially added up the cost of

all the returned stock, it would likely seem a very expensive practice. However, the real

benefit of an extensive return approach is the extra sales got by the exposure and brand

perception. Numerous researchers classified return arrangement leniency as differing

along five elements:

Time: Retailers more often than not indicate due dates in their arrival arrangements (e.g.,

a 30-day system, a 90-day approach). Approaches that give a more drawn out period of

time to return things are more merciful.

Financial: Lenient merchandise exchanges consider a full discount of the whole paid for

the thing, while strict arrangements consider only a section of the price tag to be

discounted. Exertion: Some retailers make "bothers" for consumers returning things (e.g.,

requiring the primary receipt, marks or thing packaging be held). Merchandise exchanges

requiring less exertion from consumers are more permissive.

Scope: Stores control things they consider "return-honorable." For instance, things

acquired marked down may not be qualified for return. Approaches with a more

noteworthy extent of "return-excellent" things are more permissive.

Trade: While a few retailers offer cash discounts, others offer store credit or thing trade for

the returned thing. Merchandise exchanges that allow cash discounts are more tolerant.

105 | P a g e
7.4 Shift from Return Policy to Consumer retention:

In the process of Returns, benefits or utility of item purchased online change into a trouble

for the consumer, the supportability or nature of the consumer relationship might be

influenced. Affiliations that handle returns effectively—by working with consumers to

decide advantage issues—can genuinely improve a consumer's reliability to their firm.

Merchants should give careful consideration to building return policies that are consumer

friendly". Said Paul Bates, VP of Information Products Group for VizRate.com. It seems odd

to consider consumer as a prime calculate Return process, as a consumer doesn't have much

to do with Return procedures like refurbish, restock, or resale. In any case, following

consumer's movement empowers associations to manage complex circumstances in a way

that conveys positive consumer experience. There may be no circumstance which is as

complicated as Return policies. The firm needs to keep their consumers satisfied, and

moreover they need to abstain from losing sale. Consumer retention strategies which

empower the organizations to keep up a positive relationship with consumers even returns are

fundamentals. Every consumer searches for fundamental services from E-commerce

associations; easy accessibility of items and services, complete transparency, right sort of

merchandise at opportune time and at right price, fast response and after sales services.

“A clear worded, simple, easy to understand Return polices is essential element in order

retain consumers. Lenient and easy to understand Return policies doesn't simply reduce cost

for an association, it likewise improves the overall consumer experience and increases the

likelihood of an intermittent, low - esteem consumers as a lifetime, high value one. Following

consumer movement empower businesses to deal with complex circumstances in a way that

delivers positive consumer experiences. Perhaps no circumstance is as

106 | P a g e
complicated as return policies. The firm needs the consumer to be satisfied, additionally

needs to abstain from losing a sale. Fortunately, there are consumer retention strategies that

enable firms to keep up a positive relationship with consumers even returns are necessary.

7.5 Impact of Return Management on E-commerce business:

At the purchaser end, flawed thing returns after buy and some level of use. Such returns

could exhibit quality issues that should be settled in amassing or flow. It is fundamental

to comprehend these profits as fast as could be normal in light of the current situation.

There are many firms who don't find any surrender in returned things. These no

deformities return might be decisive of consumers not perceiving how to use the thing

fittingly, not being able to genuinely present the thing, or basically finding that the thing

was not what they were imagining. These profits need to re-build the thing or pass on

more possibly to consumers about what's in store and how to use/present the thing. The

goal is to perceive why these sorts of profits are going on and work to diminish their

volume. Firms give more consideration regarding management of procedures of give

back that assumed overabundance inventories, shopper returns, old inventories and

regular things, that is to state, to the procedures Reverse Logistics (Srivastava and

Srivastava, 2006). As it builds the requirement for information adaptability since this

diminishes vulnerability of these procedures (Koste and Malhotra, 1999; Swafford,

2003). As E-commerce organizations right now works in mind boggling, changing and

exceptionally focused condition firms with proactive state of mind towards Return course

of action management improve the significance of Return process. The Return

management and Flexibility of Information Distribution enhance various leveled

execution and it infers more noteworthy impacts on adaptability and legitimate execution.

107 | P a g e
A basic and clear return approach bolsters deal, as customers will shape buys with the

learning that returning them won't be an issue. On the option hand, if an intemperate

number of profits made, it makes aggravation the retailer's principle concern. There's a

move occurring accordingly of believability, straightforwardness and "fulfilling

guarantees" are basic qualities to customers. Retailers utilize basic psychological process,

feeling, and symbolism to make a first class picture which turns into the disposition of the

look. That picture is relate implicit guarantee of a particular sensibly endeavoring

knowledge. It's the retailer's business to substantiate that each customer touchpoint

satisfies the guarantee of a store's picture, close by returns.

7. 6 Return Policies w.r.to Apparel sector of E-commerce Businesses in India:

As of June 2015, India had a web client base of around 354 million, and was relied upon

to cross 500 million in 2016. Consumer tastes vary widely when it comes to fashion, and

many shoppers demand a personalized touch. There is intense competition in the e-

commerce exports space, and several countries are actively promoting e-commerce

exports. Keeping returns a low effort experience keeps consumers coming back in the

future.

Some of the big players in India's online retail market include the Amazon.com, which

also runs Indian website Junglee.com, book-seller Flipkart.com, online marketplace

Snapdeal.com and apparel retailer Jabong.com.

On the contrary, experts and retailers say, the online apparel category is particularly wide

open for many global players, large and small, to succeed. As consumer expectations grow

higher and competition fiercer, companies sell their products or services overseas through

108 | P a g e
e-commerce. E-tailers are simultaneously seeking to cut the costs and enhance the

consumer experience.

There are numerous organizations who are taking activities to make mindfulness among

consumers and this applies over their whole lifecycle, from perusing to checkout,

delivery to returns. Be that as it may, the genuine advantage of a broad merchandise

exchange is the extra deals got by the reputation and brand observation. A reasonable

return, refunds and exchange policy demonstrates that the E-commerce businesses stand

by their products and pride themselves on a stellar consumer service experience. While

some returns are as a result of the fault of the sellers, some consumers are also

mischievous. As per Wallstreet journals, the fashion enterprise receives above average

products returns because a few shoppers just order a product online, check how it fits

them, take peer review and return it. however, such cases are minimum. Apparel E-

commerce retailers are battling with diminishing on the web returns. There are various

prime purposes behind this, as well. Consumers looking for apparel are confined by an

arrangement of impediments in ecommerce that are absent in the physical setting. Normal

confinements include: Unable to try on the apparel, Unsure what the correct size will be,

No capacity to touch and feel the item, Limited capacity to see included points of interest.

The return policies which are offered by E-tailers, help consumers to reduce the risk and

act as a motivation for purchases. The consumer may have many purposes behind giving

back an item.

1. The consumer requested mistaken item or size

2. The consumer chose the item was not required or needed

3. No explanation behind return given

109 | P a g e
4. The item did not coordinate the portrayal on the Website or in the list

5. The item did not fit the consumer's desires

6. The organization delivered the wrong item or size

The center of the issue is the monstrous changeability in estimating starting with one

brand then onto the next. A customer may be a medium in one brand, just to discover

subsequent to purchasing on the web that they are an extensive in a contending brand.

This implies numerous customers purchase two sizes, attempt them both on at home, and

return one, or once in a while both.

7.7 Return policies: Drives new Sales:

As E-commerce becomes the preferred method of shopping for consumers, it has become

essential for retailers to reshape their return policies to improve revenue streams. How

companies approach and manage their ecommerce returns policy can mean that the difference

in either securing long term retention and customer loyalty or losing business due to a decline

in sales and customer satisfaction. As Freling placed it, "In the pre-purchase stage, consumers

may consider the expenses and benefits of making a purchase. On the off chance that the

return approach is lenient in scope — if a sale item can be returned — a consumer may state,

'Gracious this is on sale. It seems like a decent value. I'll get it, and if it's not the correct

shading or fit, I'll return it.''A science daily reports analyzed that consumers desire easy and

lenient return policies, when these returns are offered and are lenient, consumers purchase

more goods from a retailer. If E-commerce businesses are not offering easy and lenient return

policies for their consumers, then they miss out big sale. Consumers have more options than

ever before, but if online retail returns are hard, they will opt to shop somewhere else.

Simple, convenient and easy to understand

110 | P a g e
return policies can drive new sales for E-commerce businesses. Offering free returns with

no charges is conducive to more online business. Consumers can remain loyal to business

when returns are simple and hassle-free. If the return policies provided by E-business are

a hassle , consumer will not shop at that E-store. The study made by Readycloud

mentioned that maximum consumers return products because of e-tailers fault. Which

drive away good consumers from that company. Once a customer has made a purchase

from an E-shops, usually Overlooked is the “after shopping for experience.” Online

retailers visit exceptional lengths to assure that finding items, adding them to the cart and

finding out are as painless, brief and smooth as viable. But what occurs if a loyal patron

desires to manner a return? If they're going through a wall of textual content and a

process that calls for too many steps, they're not likely buy from that e-shop.

The cost and customer disappointment related with returning thing hurt in go, for example, is

absolutely avoidable—however not generally observed. Operational approaches and

techniques must be created to deal with returns. Returns endorsement approaches help

guarantee that compelling gatekeeping happens, that customers are credited expeditiously,

and that stock perceivability is made as appropriate on time as would be prudent. Stock

perceivability likewise serves to operationally arrange staffing and attitude openings in an

opportune way. Deciding demeanor as ideal on time as conceivable is essential for recovering

however much incentive in the item as could be expected. Item that can be exchanged ought

to be re-embedded into the forward store network as quick as could be expected under the

circumstances. Additionally, item that requires repair or remanufacturing ought to be

recognized in order to enhance esteem recover as quick as could be expected under the

circumstances. as could be expected under the circumstances.

111 | P a g e
 CHAPTER 8
CASE STUDY ON
RETURN POLICIES OFFERED BY
SELECT E-COMMERCE COMPANIES

Case study on return policies offered by Select E-commerce

8.1 113
companies

8.2 Return policies provided by select E-commerce businesses 116

Comparative analysis of Return Policies provided by Select

8.3 120
E-commerce companies

112 | P a g e
8.1 Case study on Return policies offered by Select E-commerce companies:

E-tailers would be savvy to consider their profits arrangements and those approaches'

potential impact on planned customers. Since many reviews have found that a larger

piece of online customers set aside the opportunity to peruse the arrival technique before

they make a buy, it's effortlessly as imperative an offering point as whatever compute

caught the deal the essential spot.

Plainly, a retailer's arrival methodology expects a focal part in customers' choice to buy.

An e-posterior could have the most delightfully outlined website, dynamic web based

systems administration endeavors and consistent checkout encounter, yet without

customer agreeable returns, those endeavors are undermined. Returns are a bit of the

shopping background, and any failure related with this procedure will leave a persisting,

negative impact on the consumer.

As for this review, five top E-commerce apparels have been considered who manage

Apparel segments, their arrival approaches have been examined. i.e Flipkart.com,

Myntra.com, Amazon.com, Limeroad.com, Jabong.com and numerous others like

craftsvilla.com, Indiarush.com and so forth.

Flipkart.com:

When Indian e-commerce industry was taking baby steps, in 2007, Flipkart was launched.

The company is registered in Singapore, but their headquarters are in the city of Bangalore,

India. Flipkart began selling books to begin with. It soon expanded and began offering a wide

variety of goods. Its products include movies, music, games, mobiles, cameras,

113 | P a g e
computers, healthcare and personal products, home appliances and electronics, stationery,

perfumes, toys, apparels, and shoes. The net worth of Flipkart was valued to be as much

as US$ 74,96,58,861 in June 2015.

Myntra.com:

Situated in Bengaluru, the state capital of Karnataka, Myntra is an Indian online form and

way of life web-based interface. Indian Institute of Technology (IIT) former student

Mukesh Bansal, Vineet Saxena and Ahsutosh Lawania established Mytnra in 2007. It

began off as a customized blessing things arranged commercial center however later

handed its concentration to internet exchanging over the Indian retail area, offering

marked items. Today, Myntra is one of the top most favored web based shopping goals

for Indian consumers, particularly for youth. In June 2015, the total assets of Myntra.com

added up to US$ 6,06,44,504.

Myntra is an online marketplace for clothes and accessories for men, women and kids. It

is among the leading e-commerce platforms in India for fashion and casual lifestyle

products. From 2007 to 2010, it allowed consumers to personalize products, such as T-

shirts, mugs, mouse pads, calendars, watches, teddy bears, pendants, wine glasses and

jigsaw puzzles. After that, it shifted its focus by retailing branded apparel and moved

away from personalization. It has expanded its catalogue in 2011, which included fashion

and lifestyle products after tying up with a number of popular brands to retail a wide

array of their latest merchandise. More than 500 leading fashion and lifestyle brands in

the country, such as Nike, Adidas, Puma, Lee, Levis, Wrangler, Arrow, Jealous 21, Biba,

Fabindia, US Polo and the likes are offered in the online marketplace

114 | P a g e
Amazon.com:

Amazon was started by the name Cadabra in 1994 by Jeff Bezos. It went online as

amazon.com in 1995. What started out as an online bookstore today has turned out to

become the largest online retailer on the planet. Amazon soon started selling everything

from music CD’s, software, tools, toys, sporting goods and even groceries. But Amazon’s

biggest invention was Kindle e-book which it launched in November 2007. At the end of

2016, Amazon India was selling more than 17 million products through their portal.

Amazon’s total market share in E-commerce sector was nearly about 15% in the year 2015.

Limeroad.com:

Limeroad.com is a social shopping platform for women that offers a wide range of

products right from clothing to accessories, shoes, beauty products etc. Besides fashion

and apparel, LimeRoad also showcases home and kitchen products, making it more

appealing for women from different walks of life. LimeRoad is a brand owned by A.M.

Marketplaces Pvt. Ltd. Headquartered in Gurgaon, Haryana, India, it was founded in

2012 by Suchie Mukherjee, Prashant Malik and Ankush Mera. The objective behind

creating Limeroad was to build a platform where one could find gorgeous, affordable

lifestyle products in an extremely easy to discover interface. Lightspeed Venture Partners

and Matrix Partners India are the key investors of Limeroad investing $2 Billion and INR

3000 Crores respectively.

115 | P a g e
Jabong.com:

Jabong is a fashion and lifestyle e-commerce portal that sells apparel, footwear, fashion

accessories, beauty products, fragrances, home accessories, headquartered in Gurgaon,

India, it was co-founded in December 2011 by Arun Chandra Mohan, Lakshmi Potluri

and Praveen Sinha. It caters to the fashion needs of men, women and kids with products

in various categories, such as bags, accessories, toys, beauty, sports goods, jewelers, and

shoes and clothing. It houses more than 2,500national and international brands including

several leading global fashion brands. Among its top competitors are Myntra, is an online

marketplace for clothes and accessories for men, women and kids; Snapdeal, an online

marketplace for mobiles, clothes, consumer electronics and other accessories; and

Shopclues.com, an online marketplace for electronics, home appliances and personal care

products. Today, it is one of the top e-commerce companies in India with a net worth

estimated to be US$ 24,58,23,695 in June 2015.

8.2 Return policies provided by select E-commerce businesses:

A Return Policy is the agreement where company informs consumers about their policies

regarding returns and refunds. These policies are basaed on following information:

How many days they have to return a product

How will they receive the refund (credit or replacement)? If

you offer refunds for digital products or in-app purchases

Who pays for shipping to return the product. Etc

116 | P a g e
Flipkart.com:

Flipkart offers 30 days return policy i.e exchange for the purchased products. All types of

apparels excluding intimate wear (lingeries, shapewares, freebies, swim suits etc) can be

exchanged for size and color. The product can be exchanged if the returned product is

unworn, unwashed, and without stains. Along with this product consumers have to

produce purchase invoice. All the tags should be attached with the product. They also

demand for original packaging of the purchased product. Pick up facility is also provided

by the flipkart. Flipkart do not promise refunds/cashback for every apparel, as this option

is solely dependent on individual seller. No return is guaranted. If the required product is

not available with the company, flipkart also gives option of converting purchased

product’s amount in coupons, credit points or e-wallet.

The return policy for intimate wearing is different than the other apparels. The flipkart

offers 10 days replacement period for lingeries, shapewares, freebies, swim suits etc if a

purchased product is delivered in damaged or defective condition. A replacement

requests have to be raised by the consumer and full refund is provided by the seller.

Consumers are requested to ship a product to the company. No return is guaranted.

Myntra.com:

Myntra offers upto 30 days return/exchange policy for the purchased apparels. All types of

apparels excluding lingeries, shapewares, freebies, swim suits, mittens and wrist bands can be

exchanged only for size. The product can be exchanged if the returned product is unused and

in their original condition. Still the returns are not guaranted. Along with this product

consumers have to produce purchase invoice. All the tags should be attached with the

product. They also demand for original packaging of the purchased product. Pick up facility

117 | P a g e
is also provided by the Myntra, but in certain places where they do not have shipping

facility available, cosnumers are expected to self-ship the product. Myntra also gives

option of converting returned product’s amount in cashback, coupons or e-wallet.

The return policy for intimate wearing is different than the other apparels. The myntra

offers only replacement policy for lingeries, shapewares, freebies, swim suits, mittens,

wrist bands etc. A replacement requests have to be raised by the consumer and pick up

facility is not available for such products. Consumers are requested to ship a product to

the company. No return is guaranted.

Amazon.com:

Amazon offers upto 30 days refund/replacement policy for the purchased apparels. All

types of apparels excluding lingeries, shapewares, freebies, swim suits, mittens and wrist

bands can be exchanged only for size. The product can be exchanged/returned if the

product is unused and in its original condition. Still the returns are not guaranted. Along

with this product consumers have to produce purchase invoice. All the tags should be

attached with the product. They also demand for original packaging of the purchased

product. Unlike all other e-commerce websites Amazon offeres Drop off facility along

with Pick up facility and self shipping. In case of self shipping, the shipping charges are

paid by amazon after ensuring the return as per their conditions. Amazon also gives

option of converting returned product’s amount in cashback, coupons or e-wallet.

The return policy for intimate wearing is different than the other apparels. The Amazon

offers return policy for lingeries, shapewares, freebies, swim suits, mittens, wrist bands

etc products only in case of damaged or defective products. Otherwise there is NO

RETURN POLICY for such products considering the hygine and health security.

118 | P a g e
Limeroad.com:

Limeroad offers upto 7 days return/exchange policy for the purchased apparels. All types of

apparels excluding lingeries, shapewares, freebies, swim suits, mittens and wrist bands can be

exchanged only for size. The product can be exchanged if the returned product is unused and

in their original condition. Still the returns are not guaranted. Along with this product

consumers have to produce purchase invoice. All the tags should be attached with the

product. They also demand for original packaging of the purchased product. Return pick up

facility is also provided by Limeroad, but in certain places where they do not have shipping

facility available, cosnumers are expected to self-ship the product. Limeroad also gives

option of converting returned product’s amount in cashback, coupons or e-wallet.

The return policy for intimate wearing is different than the other apparels. The Limeroad

offers only replacement policy for lingeries, shapewares, freebies, swim suits, mittens,

wrist bands etc. A replacement requests have to be raised by the consumer and pick up

facility is not available for such products. Consumers are requested to ship a product to

the company. No return is guaranted.

Jabong.com:

Jabong offers upto 315 days return/exchange/product cancellation policy for the purchased

apparels. All types of apparels excluding lingeries, shapewares, freebies, swim suits, mittens

and wrist bands can be exchanged only for size. The product can be exchanged if the returned

product is unused and in their saleable condition. Still the returns are not guaranted. Along

with this product consumers have to produce purchase invoice. All the tags should be

attached with the product. They also demand for original packaging of the purchased product.

Pick up facility is also provided by the Jabong, but in certain places

119 | P a g e
where they do not have shipping facility available, consumers are expected to self-ship

the product. Shipping charges have be born by consumers. Company do not refund

shipping charges. Jabong also gives option of converting returned product’s amount in

cashback, coupons or e-wallet. Cash back is only possible if the product is returned in 7

working days.

The return policy for intimate wearing is different than the other apparels. The Jabong

has strict NO RETURN POLICY for products like lingeries, shapewares, freebies, swim

suits, mittens, wrist bands etc.

8.3 Comparative analysis of Return Policies:

The comparison of all the select e-commerce website’s Return policies is given in the

following table: (Refer page 121)

Replacement:

The process of removing something entirely with a new one is replacement.

Exchange:

The act where one thing is given and in return another thing is received is exchange.

120 | P a g e
 Table 8.3a Flipkart’s Return Policies

121 | P a g e
 Table 8.3b Myntra’s Return Policies

122 | P a g e
 Table 8.3c Amazon’s Return Policies

123 | P a g e
 Table 8.3d Limeroad’s Return Policies

124 | P a g e
 Table 8.3e Jabong’s Return Policies

125 | P a g e
 CHAPTER 9

DATA ANALYSIS
PART I

126 | P a g e
 CHAPTER 9

DATA ANALYSIS PART I

This chapter consist of Classification of data using frequency tables and charts. Further

data is analyzed using arithmetic mean and standard deviation.

9.1.1 CLASSIFICATION OF DEMOGRAPHIC FACTORS:

AGE:

Information about age of respondent is collected. Respondents are classified in to four

groups according to their age. Information about classification is presented in the

following table:

Age group Number of Percent Valid Percent Cumulative

respondents Percent

Below 20 Yrs 146 32.4 32.4 32.4

20 to 30 Yrs 222 49.3 49.3 81.8

30 to 40 Yrs 44 9.8 9.8 91.6

40 to 50 Yrs 38 8.4 8.4 100.0

Total 450 100.0 100.0

Table 9.1.1a

Above table indicate that out of total 450 respondents, 146 belong to age group “Below

20 years”. Another 222 respondents belong to 20 to 30 years of age group, 44

respondents belong to 40 to 50 years of age group and 38 respondents belong to 40 to 50

years of age group. Above information is presented using pie chart as shown below.

127 | P a g e
GENDER:

Information about Gender of respondent is collected. Information about Gender

classification is presented in the following table:

Gender Frequency Percent Valid Cumulative

Percent Percent

Male 234 52.0 52.0 52.0

Female 216 48.0 48.0 100.0

Total 450 100.0 100.0

Table 9.1.1b

Above table indicates that out of 450 respondents 234 respondents are male and 216 are

female respondents.

128 | P a g e
OCCUPATION:

Information about Occupation of respondents is collected. The Category of occupation

are divided in 4 parts. Information about Occupation classification is presented in the

following table:

Occupation Frequency Percent Valid Percent Cumulative

Percent

Self Employed 40 8.9 8.9 8.9

Employed 235 52.2 52.2 61.1

Professional 68 15.1 15.1 76.2

Student 107 23.8 23.8 100.0

Total 450 100.0 100.0

Table 9.1.1c

Above table indicates that out of 450 respondents 40 respondents are self-employed, 235

are employed, 68 are professionals and 107 are students.

129 | P a g e
EDUCATION:

Information about Education of respondents is collected. The Category of Education are

divided in 3 parts. Information about Education classification is presented in the

following table:

Education Frequency Percent Valid Cumulative

Percent Percent
12th Std and below 46 10.2 10.2 10.2
Graduate 162 36.0 36.0 46.2
Post graduate and
242 53.8 53.8 100.0
above
Total 450 100.0 100.0
Table 9.1.1d

The above table indicates that out of 450 respondents 46 respondents are 12th standard

and below, 162 are graduate, and 242 are post graduate and above.

130 | P a g e
ANNUAL INCOME:

Information about Annual Income of respondents is collected. The Category

of Annual income are divided in 5 parts. Information about Annual Income

classification is presented in the following table:

Frequency Percent Valid Cumulative

Percent Percent

Up to 2 lakhs 110 24.4 24.4 24.4

2 to 5 lakhs 131 29.1 29.1 53.6

5 to 7 lakhs 106 23.6 23.6 77.1

7 to 10lakhs 42 9.3 9.3 86.4

10 lakhs and
61 13.6 13.6 100.0
above

Total 450 100.0 100.0

Table 9.1.1e

The above table indicates that out of total respondents 110 respondents belong to annual

income category upto 2 lakh, 131 respondents belong to 2 to 5 lakh 106 belong to 5 to 7

lakhs, 42 respondents belong to 7 to 10 lakh and above.

131 | P a g e
MARITAL STATUS:

Information about Marital Status of respondents is collected. Information about

Marital Status of respondents is presented in the following table:

Cumulative

Frequency Percent Valid Percent Percent

Unmarried 292 64.9 64.9 64.9

Married 158 35.1 35.1 100.0

Total 450 100.0 100.0

Table 9.1.1f

The above table indicates that out of 450 respondents 292 respondents are unmarried and

158 are married.

132 | P a g e
9.2.2 ONLINE PURCHASING BEHAVIOR:

The information regarding respondents who make purchases using internet source

(E-shopping) is given in the following table:

Frequency Percent Valid Percent Cumulative Percent

Yes 450 100.0 100.0 100.0

No 0 0 0 0

Table 9.2.2

The data is collected from respondents who make online purchases and hence the above

table indicates that all 450 respondents are E-commerce users.

133 | P a g e
9.2.3 PRODUCTS PURCHASING PATTERN:

The information about various items/products purchase is collected to understand the

purchasing pattern of respondents.

Question no Articles Number of Per cent

respondents (%)

purchasing items

8 (a) Books Magazines 162 36.0

8 (b) Movies, Music& Games 65 14.4

8 (c) Electronics, Mobiles & 281 62.4

Computers

8 (d) Home and Living 81 18

8 (e) Fragrances, Beauty & Health 165 36.7

8 (f) Toys, kids & baby 118 26.2

8 (g) Apparels & Accessories 410 91.8

8 (h) Footwear 261 58

8 (i) Fitness, Sports and Outdoors 192 42.7

8 (j) Watches 157 34.9

8 (k) Daily & Grocery 59 13.1

8 (l) Other 68 15.1

Table 9.2.3

Above responses are rated as follows.

For purchase is YES = 1

For purchase is No = 0

134 | P a g e
Using above responses mean variation score of purchase is calculated using formula

given below.

Sum of scores of all 12 questions

Mean score of variation in Purchase = ------------------------------------------- X 100

Maximum score of 12 questions

N Minimum Maximum Mean Std.

Deviation

Variation in Purchase score 450 8.33 100.00 37.3889 19.64982

Above table indicate that mean score of variation is 37.38 with standard deviation 19.64.

Lowest score is 8.33 and highest score is 100.

135 | P a g e
9.2.4 PREFERED E-SHOPPING WEBSITES OF RESPONDENTS:

The data is collected to gather information about various E-commerce websites preferred

by respondents.

Question Name of website Number of Percentage of

No Respondents respondents

9 (a) Flipkart.com 329 73.1

9 (b) Amazon.com 399 88.7

9 (c) Ebay.com 28 8.2

9 (d) Snapdeal.com 206 45.8

9 (e) Shopclues.com 59 13.1

9 (f) Other 138 13.1

Table 9.2.4

The above table indicates that out of 450 respondents 329 respondents prefer buying

products from flipkart, 399 prefer amazon, 28 prefer Ebay, 206 prefer Snapdeal, 59 prefer

Shopclues, and 138 prefer other website like Jabong, Alibaba.com, Myntra etc

136 | P a g e
9.2.5 PREFERED WEBSITES FOR APPAREL SHOPPING:
Information about preferred websites for apparel shopping is collected from respondents.

Information about various websites classification is presented in the following table:

Question Name of Website Number of Percentage of

No Respondents respondents

11(a) Flipkart.com 156 34.7

11 (b) Myntra.com 251 55.8

11 (c) Amazon.com 212 47.1

11 (d) Limeroad.com 133 29.6

11 (e) Jabong.com 56 12.4

11 (f) Any other 52 11.6

Table 9.2.5

The above table indicates that out of 450 respondents 156 respondents prefer buying

apparels from Flipkart, 251 prefer Myntra, 212 prefer Amazon, 133 prefer Limeroad, 56

prefer Jabong, and other 52 prefer websites like Craftsvilla, IndiaRush, Yebhi.com etc.

137 | P a g e
9.2.6 FREQUENCY OF APPAREL SHOPPING:

Information about frequency of apparel shopping is collected from respondents.

Information about frequency is presented in the following table:

Frequency Percent Valid Cumulative

Percent Percent
Twice a week or
11 2.4 2.4 2.4
more
Weekly 8 1.8 1.8 4.2
Valid Once per two weeks 55 12.2 12.2 16.4
Monthly 166 36.9 36.9 53.3
Occasionally 210 46.7 46.7 100.0
Total 450 100.0 100.0
Table 9.2.6

The above table indicates that11 out of 450 respondents purchase apparels twice a week or

more, 8 respondents make purchases weekly, 55 respondents make purchases once per two

weeks, 166 respondents make purchases monthly and remaining 210 make it occasionally.

138 | P a g e
9.2.7 AMOUNT SPENT ON E-SHOPPING:

For the said study, another important variable is ‘ONLINE PURCHASING”. This

variable consists of Monthly amount spent for online shopping. Following table is

classification of respondents according to amount spent for online shopping.

Frequency Percent Valid Percent Cumulative

Percent

Less than 1000 31 6.9 6.9 6.9

1000 to 2000 160 35.6 35.6 42.4

2000 to 5000 159 35.3 35.3 77.8

Valid 5000 to 10000 67 14.9 14.9 92.7

More than 10000 33 7.3 7.3 100.0

Total 450 100.0 100.0

Table 9.2.7

The above table indicates that out of 450 respondents around 160 respondents spend 1000

to 2000 rupees on online apparel shopping, 159 respondents spend 2000 to 5000 rupees,

67 spend 5000 to 10000 and 33 respondents spend more than 10000 rupees on online

apparel shopping. This information is presented using pie diagram as shown below.

139 | P a g e
9.2.8 TYPE OF APPAREL ITEMS PURCHASE:

It is also necessary to understand frequency of online shopping. Information collected for

the same is classified and presented in the following table.

Question Types of Apparel Number of Percentage of

no Respondents respondents

14 (a) Top-tees & Shirts 307 68.2

14 (b) Dresses & Kurtas 189 42.0

14 (c) Salwars & Chudidars 76 16.9

14 (d) Trousers & Jeans 134 29.8

14 (e) Sarees & Dress 104 23.1

Materials

14 (f) Sweaters & Jackets 73 16.2

14 (g) Shorts & skirts 75 16.5

14 (h) Lingerie & 25 5.6

Nightwear

14 (i) Other 30 6.7

Table 9.2.8

Above responses are rated as

follows. For purchase is YES = 1

For purchase is No = 0

Using above responses mean variation score of purchase is calculated using formula

given below.

140 | P a g e
 Sum of scores of all 9 questions
Mean score of variation in purchase = ------------------------------------------- X 100

Maximum score of 9 questions

N Minimu Maximu Mean Std.

m m Deviation

Variation in clothing
450 .00 77.78 25.0102 13.85952
purchase score

Valid N (listwise) 450

Above table indicate that mean score of variation is 25.01 with standard deviation 13.859.

Highest score is 100.

141 | P a g e
9.2.9 PROBLEMS ASSOCIATED WITH ONLINE APPAREL SHOPPING:

The information is collected from respondents to understand the various problems

associated with online apparel shopping.

Question Problems associated Number of Percentage of

No with online apparel Respondents respondents
shopping
15 (a) Cost of shipping 65 14.4
/delivery charges too
high
15 (b) Difficult to return 220 48.9
purchased items
15 (c) Takes too long to 171 38.0
receive deliveries
15 (d) Dislike sharing 40 8.9
payment information
15 (e) Any other 61 13.6

Table 9.2.9

The above table indicates that out of 450 respondents 65 respondents think the problem

associated with Online apparel shopping is Cost of shipping /delivery charges too high,

220 respondents feel it’s difficult to return purchased items, 171 thinks it takes too long

to receive deliveries, 40 respondents think that sharing payment information is risky.

142 | P a g e
 N Minimu Maximu Mean Std.

m m Deviation

Problem in OS score 450 20.00 60.00 24.7556 10.05808

Valid N (listwise) 450

Above table indicate that mean score of variation is 24.75 with standard deviation 10.058.

Lowest score is 20.00 and Highest score is 60.

143 | P a g e
9.2.10 AWARENESS OF RETURN POLICIES:

To understand awareness of respondents about return policy information is

collected though questionnaire. Classification of respondents according to

level of awareness is presented in the following table.

Frequency Percent Valid Cumulative

Percent Percent

Least aware 162 36.0 36.0 36.0

Partly aware 189 42.0 42.0 78.0

Mostly Aware 77 17.1 17.1 95.1

Valid
Completely
22 4.9 4.9 100.0
Aware

Total 450 100.0 100.0

Table 9.2.10

Above table indicate that out of 450 respondents only 162 respondents heard of return

policy but not much aware about it. There are 189 respondents who are partly aware of

return policy, 77 respondents are mostly aware about return policy. There are 22

respondents are completely aware. This information is presented using bar diagram as

shown below.

144 | P a g e
 Std.

N Minimum Maximum Mean Deviation

Score of Awareness of
450 25.00 100.00 47.7222 21.21269
Return Policies

450

Above table indicate that mean score of variation is 47.72 with standard deviation 21.21.

Lowest score is 25.00 and Highest score is 100.

145 | P a g e
9.2.11 RETURN POLICY OPTIONS:

The information is collected from respondents to check the knowledge of Return Policy

Options offered by E-commerce Businesses.

Return Policy Least Partly Don’t Mostly Completely

Options Aware Aware Bother Aware Aware

Cash Back 43 48 11 244 104

Coupons 84 123 60 160 23

Replacements 47 31 32 238 102

for items

Point 73 126 75 129 47

Redemption

Table 9.2.11

Above responses are rated as follows

Least aware = 1

Partly aware = 2

Do not bother = 3

Mostly aware = 4

Completely aware = 5

Using above responses mean variation score of purchase is calculated using formula given

below.

Sum of scores of all 4 Options

Mean score of variation in Awareness = ------------------------------------------- X 100

Maximum score of 4 Options

146 | P a g e
Descriptive Statistics:

N Minimum Maximum Mean Std.

Deviation

Knowledge of types of
450 16.00 80.00 52.4533 14.72083
Return Policy options

Valid N (listwise) 450

Above table indicate that mean score of variation is 52.45 with standard deviation 14.72

Lowest score is 16.00 and Highest score is 80

147 | P a g e
 9.2.12 POINT OF REFERENCE OF RETURN POLICY:

The information is collected from respondents to check knowledge of Return policy

options offered by E-commerce Business.

Frequency Percent Valid Cumulative

Percent Percent
Before Purchase 122 27.1 27.1 27.1
After Purchase, if need
248 55.1 55.1 82.2
Valid to return
Both before and after 80 17.8 17.8 100.0
Total 450 100.0 100.0
Table 9.2.12

From the above data, it is concluded that 122 respondents out of 450 look into Return

policies before making online purchase, 248 respondents look into Return policies after

purchase, if they need to return it and 80 respondents look into the return policies both

before and after purchase.

148 | P a g e
9.2.13 CLARITY IN RETURN POLICIES:

The information in collected from respondents to understand the clarity in Terms

and conditions of Return Policies. The information is tabulated below:

Frequency Percent Valid Cumulative Percent

Percent

Yes 331 73.6 73.6 73.6

Valid No 119 26.4 26.4 100.0

Total 450 100.0 100.0

Table 9.2.13

The above table indicates that out of 450 respondents 331 respondents feel that there is

clarity in terms and conditions of return policies stated by E-commerce businesses

whereas 119 respondents feel the return policies stated by E-tailers are not clear.

149 | P a g e
9.2.14 RETURN OF PURCHASED APPAREL ITEMS:

The information collected through respondent’s states whether they have

experienced return process.

Frequency Percent Valid Percent Cumulative

Percent

Valid Yes 450 100.0 100.0 100.0

Table 9.2.14

The above table indicates that all 450 respondents have experienced Return Process of E-

tailers.

150 | P a g e
9.2.15 REASONS FOR RETURNING THE APPARELS:

The information about reasons for returning the apparels is collected from respondents.

Question No Reasons for Number of Per cent

returning respondents (%)

apparels

21 (a) Wrong size 128 28.4

21 (b) Color difference 283 62.9

21 (c) Wrong pattern 58 12.9

21 (d) Brand differences 25 5.6

21 (e) Items received was 203 45.1

not as portrayed

online

21 (f) Damaged or 27 6.00

defective items

21 (g) Poor packaging 15 3.3

21 (h) Poor quality 118 26.2

21 (i) Any other 35 7.8

Table 9.2.15

Above table indicate that maximum 283 respondents returned item for the reason ‘colour

difference’. It happened in most of the cases colour looks on the screen does not look

exactly same that of colour of actual item.

Next main reason of return is ‘Item received was not portrayed online’. There are 203

respondents who returned the goods for this reason, as the product received was not the

151 | P a g e
same as it was portrayed online. Further, 128 respondents have returned apparels due to

Wrong size, 58 respondents returned due to wrong pattern, 25 respondents returned

purchased apparels due brand differences, 118 respondents have returned apparels due to

poor quality.

Descriptive Statistics

N Minimum Maximum Mean Std.

Deviation

Variation in Return
450 11.11 44.44 22.0225 9.83500
Policies

Valid N (listwise) 450

Above table indicate that mean score of variation is 22.022 with standard deviation 9.83.

Lowest score is 11.11 and highest score is 44.44.

152 | P a g e
9.2.16 DIFFICULTY IN RETURNING APPARELS:

The information from respondents is collected to understand the difficulty in

returning the apparels purchased online.

Frequency Percent Valid Percent Cumulative Percent

No 316 70.2 70.2 70.2

Valid Yes 134 29.8 29.8 100.0

Total 450 100.0 100.0

Table 9.2.16

The above table indicates that out of 316 respondents have not faced difficulty while

returning the apparels purchased online. This information is presented using Pie diagram

as shown below.

153 | P a g e
9.2.17 NATURE OF RISKS INVOLVED IN RETURNING PURCHASED

APPARELS:

While returning good purchased online there are some risk in respondent’s mind. This

information classified and presented in the following table.

Question No Risks involved in Number of Per cent

returning apparels respondents (%)

23 (a) Financial Risks 321 71.33

23 (b) Product Risks 143 31.77

23 (c) Security Risks 38 8.44

Table 9.2.17

From the 450 respondents, 321 respondents feel that financial risk is involved, 143

respondents feel that product risks is involved and 38 respondents feel that security risk is

involved.

154 | P a g e
9.2.18 TIME SPENT IN RETURNING PROCESS:

Information about time spent in returning process of respondent is collected.

Information about time classification is presented in the following table:

Frequency Percent Valid Percent Cumulative

Percent

Less than a day 80 17.8 17.8 17.8

1 to 2 days 43 9.6 9.6 27.3

2 to 3 days 52 11.6 11.6 38.9

Valid 3 to 5 days 125 27.8 27.8 66.7

More than 5 day 150 33.3 33.3 100.0

Total 450 100.0 100.0

Table 9.2.18

The above table indicates that around 80 respondents out of 450 have spent less than a

day for returning the apparels, 43 respondents have spent 1 to 2 days, 125 respondents

have spent 3 to 5 days and more than 150 respondents have spent more than 5 days in

returning the apparels purchased online.

155 | P a g e
9.2.19 SATISFACTION LEVEL OF RETURN POLICIES:

Information about Satisfaction level of Return policies provided by E-tailers is

collected from respondents. Information about satisfaction level’s classification is

presented in the following table:

Frequency Percent Valid Cumulative

Percent Percent

Least satisfied 31 6.9 6.9 6.9

Partly satisfied 148 32.9 32.9 39.8

Mostly satisfied 186 41.3 41.3 81.1

Valid
Completely
85 18.9 18.9 100.0
satisfied

Total 450 100.0 100.0

Table 9.2.19

The above responses are rated as follows:

Least satisfied = 1

Partly satisfied = 2

Mostly satisfied = 3

Completely satisfied = 4

156 | P a g e
 N Minimum Maximum Mean Std.

Deviation

Return satisfaction wrt Time 450 25.00 100.00 68.0556 21.18030

Valid N (listwise) 450

Above table indicate that mean score of variation is 68.05 with standard deviation 21.18.

Lowest score is 25.00 and highest score is 100.

157 | P a g e
9.2.20 ACTIONS AND DIFFICULTIES ASSOCIATED WITH RETURNING THE

APPAREL PURCHSED ONLINE

The information is collected from respondents on actions associated with Returning the

apparel purchased online. The classification of these actions and level difficulties are

given below:

Question Actions Extremely difficult Neutral Easy Extremely

difficult easy
No

26 (a) Paying the cost 70 83 199 78 20

of return to
shipping carrier
26 (b) Going to 119 155 77 60 39
shipping carrier
to send a return
item
26 (c) Scheduling a pick 107 87 103 105 48
up for return
26 (d) Contacting the E- 67 123 91 122 47
tailer to ensure
they will take the
return
26 (e) Repackaging the 35 116 180 105 14
item
26 (f) Contacting E- 60 104 89 183 14
tailer to check the
status of the
return item
Table 9.2.20

Above table indicate that opinion for each action of return. For first action ‘Paying the

cost of return to shipping carrier’ opinion of respondents is recorded. 70 respondents feel

that it is extremely difficult, 83 feel difficult, maximum 199 feel neutral, 78 respondents

feel it is easy and only 20 respondents feel it is extremely easy.

158 | P a g e
For the second action ‘going to shipping carrier to send a return back’, 119 respondents find

it extremely difficult, 155 find it difficult, 77 are neutral, 60 find it easy and 39 find it

extremely easy. Another 107 respondents find it extremely difficult to manage scheduling

pick up for returning their product, 123 respondents find it difficult to contact e-tailer for

further follow ups. 180 respondents find Re-packaging issue before returning the product.

159 | P a g e
9.2.21 ADVERSE IMPACT OF RETURN POLICIES ON FEQUENCY OF

SHOPPING:

Frequency Percent Valid Percent Cumulative Percent

Very low 63 14.0 14.0 14.0

Low 47 10.4 10.4 24.4

Neutral 186 41.3 41.3 65.8

ValidHigh 111 24.7 24.7 90.4

Very
43 9.6 9.6 100.0
high

Total 450 100.0 100.0

Table 9.2.21

The above responses are rated as follows

Very low = 1

Low = 2

Neutral = 3

High = 4

Very High = 5

160 | P a g e
9.2.22 IMPACT OF EASY RETURN POLICIES:

Question No Impact of easy Number of Percentage

return policies Respondents (%)

28 (a) Shop more often 272 60.4

with E-tailers

28 (b) Recommend to a 245 54.4

Friend

28 (c) Drop another E- 43 9.6

tailer with a less
easy return policy

28 (d) Focus less on 141 31.3

prices and more on
their quality of
services
28 (e) All of the above 149 33.3
28 (f) Any other 137 30.4
Table 9.2.22

The table indicates that out of 450 respondents 272 respondents would shop more often

with E-tailers, 245 would recommend to their friends, 141 would focus more on the

quality services and not on the prices, 149 would consider all the options.

161 | P a g e
 Std.

N Minimum Maximum Mean Deviation

Impact of easy return

450 16.67 66.67 36.7031 14.64335
Policy

Valid N (listwise) 450

Above table indicate that mean score of variation is 36.70 with standard deviation 14.64.

Lowest score is 16.67 and highest score is 66.67.

162 | P a g e
 CHAPTER 10

DATA ANALYSIS

PART II

163 | P a g e
 CHAPTER 10

PART-2

ANALYSIS AND TESTING OF HYPOTHESIS

The Hypothesis which was formulated in the study was tested and the respective

conclusions were obtained as follows.

10.1 CRONBACH’S ALPHA TEST OF RELIABILITY:

Intermediate step of analysis is to validate Cronbach’s Alpha test of reliability. The alpha

value is .702. All the objectives and hypothesis mentioned in the research methodology

are tested and discussed in detail.

10.2 HYPOTHESIS 1: DIFFERENCE IN THE LEVEL OF AWARENESS OF

RETURN POLICIES AMONG VARIOUS CONSUMERS.

For the study of above hypothesis following null hypothesis was designed and tested. Sub

hypothesis has been formulated and tested for understanding the difference between

awareness about return policies among consumers.

Null Hypothesis H01: There is no significant difference between the level of

awareness of Return policies among consumers

Alternate Hypothesis H11: There is a significant difference between the level of

awareness of Return policies among consumers

164 | P a g e
10.2.1 Level of awareness of Return policies among different age groups

Null Hypothesis H01A: There is no significant difference in the level of awareness of

Return Policies according to different age groups

Alternate Hypothesis H11A: There is significant difference in the level of awareness of

Return Polices according to different age groups

To test above null hypothesis ANOVA is obtained and F-test is applied. Results are as

follows:

Score of Awareness of Return Policies (AGE)

Sum of Mean Square
Squares df F Sig. Result
Between
48448.626 3 16149.542
Groups Rejected
Within Groups 153591.651 446 344.376 46.895 .000

Total 202040.278 449

Table 10.2.1
Above results indicate that calculated p-value is 0.000. It is less than standard p-value

0.05. Therefore F-test is rejected. Hence null hypothesis is rejected and alternate

hypothesis is accepted.

CONCLUSION: There is significant difference in awareness of Return Policies

according to different age groups.

To understand findings of hypothesis, mean awareness scores for each age group are

obtained and presented in the following table.

165 | P a g e
 Score of the level of Awareness of Return Policies (AGE)

Age group N Mean Std. Deviation

Below 20 yrs 146 37.3288 14.45760

20 to 30 yrs 222 47.2973 20.55545

30 to 40 yrs 44 64.2045 21.15676

40 to 50 yrs 38 71.0526 16.97207

Total 450 47.7222 21.21269

Table 10.2.1a

Above table indicate that Mean level of awareness score of respondents of age group

“below 20 years” is 37.32. Which is least among all age groups. And awareness score of

respondents of age group of 40 to 50 years is 71.05 which is highest among all the age

groups.

To understand significance of awareness between every two groups. POST HOC test is

applied which is shown in table 10.2.1b (Annexure)

166 | P a g e
FINDINGS OF HYPOTHESIS:
1. There is significant difference in awareness level of Return Policies between

respondents of age group “below 20 years” and respondents of age group “20 to

30 years”.

2. Awareness level of respondents of age group “20 to 30 years” is significantly

greater.

3. There is no significant difference in awareness level of Return policies between the

age group of “30 to 40 years” and respondents of age group “40 to 50 years”.

4. There is no significant difference in awareness of Return policies between the

age group of “40 to 50 years” and respondents of age group “30 to 40 years”.

167 | P a g e
10.2.2 Level of awareness of Return policies among different education levels:

Null Hypothesis H01B: There is no significant difference in the level of awareness of

Return Policy according to different education levels.

Alternate Hypothesis H11B: There is significant difference in the level of awareness of

Return Policy according to different education levels.

To test above null hypothesis ANOVA is obtained and F-test is applied. Results are as

follows:

Score of Awareness of Return Policies (Education)

Sum of df Mean F Sig. Result

Squares Square

Between
10445.782 2 5222.891
Groups
12.185 .000 Rejected
Within Groups 191594.495 447 428.623
Total 202040.278 449
Table 10.2.2

Above results indicate that calculated p-value is 0.000. It is less than standard p-value

0.05. Therefore F-test is rejected. Hence null hypothesis is rejected and alternate

hypothesis is accepted.

CONCLUSION: There is significant difference in the level of awareness of Return

Policies according to different education level.

To understand findings of hypothesis, mean awareness scores for each education level are

obtained and presented in the following table.

168 | P a g e
 Score of Awareness of Return Policies (Education)

Education N Mean Std. Deviation

12th std and below 46 36.4130 12.59025

Graduate 162 45.2160 17.95741

Post graduate and above 242 51.5496 23.45154

Total 450 47.7222 21.21269

Table 10.2.2a

Above table indicate that mean level of awareness score of respondents’ whose education

level 12th standard and below is 36.41 which is least among all education level. And

mean level of awareness score of respondents’ who are graduate is 45.21. The mean

awareness score of respondent’s whose education is post graduate and above is highest

among all education levels i.e 51.54.

To understand significance of awareness between every two groups. POST HOC test is

applied and results are shown in table 10.2.2b (Annexure)

FINDINGD OF HYPOTHESIS:
1. There is significant difference in awareness of Return Policies between all

education levels of respondents.

2. The awareness of respondents whose education is 12th standard and below and

graduate is significantly greater.

169 | P a g e
10.2.3 Level of awareness of Return policies among different gender:

Null Hypothesis H01C: There is no significant difference in the level of awareness of Return

Policy according to gender of respondents

Alternate Hypothesis H11C: There is significant difference in the level of awareness of

Return Policy according to gender of respondents

Score of Awareness of Return Policies (Gender)

Sum of Df Mean F Sig. Result

Squares Square

Between
11108.342 1 11108.342
Groups
26.064 .000 Rejected
Within Groups 190931.936 448 426.187

Total 202040.278 449

Table 10.2.3

Above results indicate that calculated p-value is 0.000. It is less than standard p-value

0.05. Therefore F-test is rejected. Hence null hypothesis is rejected and alternate

hypothesis is accepted.

CONCLUSION: There is significant difference in awareness of Return Policies

according to different Gender.

To understand findings of hypothesis, mean awareness scores for genders are obtained and

presented in the following table.

170 | P a g e
 Score of Awareness of Return Policy (Gender)

Gender N Mean Std. Deviation

Male 234 42.9487 19.33613

Female 216 52.8935 21.97425

Total 450 47.7222 21.21269

Table 10.2.3a

Above table indicate that mean awareness score of male respondents is 42.94 and mean

awareness score for female respondent is 52.89 which is significantly greater than male

respondents.

FINDINGS OF HYPOTHESIS:

1. The level of awareness among female respondents is higher than male

respondents.

171 | P a g e
10.2.4 Level of awareness of Return policies among different occupation of

respondents:

Null HypothesisH01D: There is no significant difference in the level of awareness of Return

policies according to occupation of respondents

Alternate HypothesisH11D: There is significant difference in the level of awareness of

Return Policies according to occupation of respondents

Score of Awareness of Return Policies (Occupation)

Sum of Df Mean F p-value Result

Squares Square
Between
46161.316 3 15387.105
Groups 44.025 .000
Within Groups 155878.961 446 349.504 Rejected
Total 202040.278 449
Table 10.2.4

Above results indicate that calculated p-value is 0.000. It is less than standard p-value

0.05. Therefore F-test is rejected. Hence null hypothesis is rejected and alternate

hypothesis is accepted.

CONCLUSION: There is significant difference in awareness of Return Policies

according to occupation of the respondents.

To understand findings of hypothesis, mean score for level of awareness according to

occupation of respondents are obtained and presented in the following table.

172 | P a g e
 Score of Awareness of Return Policies (Occupation)

Occupation N Mean Std. Deviation

Self Employed 40 41.8750 19.10455

Employed 235 51.5957 20.01886

Professional 68 62.5000 22.65082

Student 107 32.0093 11.28239

Total 450 47.7222 21.21269

Table 10.2.4a

The above table indicate that the mean score of awareness of respondents as per occupation.

There is significantly greater impact on professionals as the mean awareness score is 62.50.

The mean awareness score among students is 32.00, which is least among all.

To understand significance of awareness between every two groups. POST HOC test is

applied and results are shown in table 10.2.4b (Annexure)

FINDINGD OF HYPOTHESIS:

1. There is significant difference in awareness of Return Policies between all

occupation groups respondents.

2. There is significant level of awareness of Return policies among student category.

3. There is significant level of awareness of Return policies among respondents

who are self-employed.

173 | P a g e
10.3 Hypothesis 2: Impact of easy and lenient Return Policies on E-commerce

business

For the study of above hypothesis following null hypothesis was designed and tested for

understanding the impact of easy and lenient apparels’ return policies on E-commerce

business.

NULL HYPOTHESIS H02: There is no significant impact of easy and lenient Return

Policies on E-commerce business

ALTERNATE HYPOTHESIS H12: There is a significant impact of easy and lenient

return policies on E-commerce business

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

E- commerce business 450 36.7031 14.64335 .69029

Table 10.3

To test and validate above sample statistics one sample test is applied.

One-Sample Test

T df p-value Mean Result

Difference

E-Commerce Rejected
53.170 449 .000 36.70313
Business
Table 10.3a

Above results indicate that calculated p-value is 0.000. it is less than standard p-value

0.05, hence the test is rejected as well as null hypothesis is rejected. Alternate hypothesis

is accepted.

174 | P a g e
CONCLUSION: There is a significant impact of easy and lenient return policies on E-

commerce business.

FINDINGS of hypothesis:

1. Easy and lenient return policies have impact on E-commerce business.

175 | P a g e
10.4 HYPOTHESIS 3: IMPACT OF APPAREL’S RETURN POLICIES ON
ONLINE PURCHASING BEHAVIOR OF CONSUMER

For the study of above hypothesis following null hypothesis was designed and tested. Sub

hypothesis has been formulated and tested for understanding the impact of apparels’

return policies on online purchasing behavior of consumers.

Null Hypothesis H03: There is no significant impact of Return policies on consumer’s

Apparel purchasing behavior

Alternate Hypothesis H13: There is a significant impact of Return Policies on

consumer’s Apparel purchasing behavior

10.4.1 Adverse impact of Return Policies on frequency of shopping among consumers.

NULL HYPOTHESIS H03A: There is no adverse impact of return policies on frequency

of shopping among consumers.

ALTERNATE HYPOTHESIS H13A: There is an adverse impact of return policies on

frequency of shopping among consumers.

Frequency of Apparel’s online shopping

Adverse impact
on online Twice a Weekly Once per two Monthly Occasionall Total
shopping week or weeks y Count
more

Very low 0 0 0 52 11 63
Low 0 0 9 25 13 47

Neutral 0 0 30 48 108 186

High 11 8 16 41 35 111
Very high 0 0 0 0 43 43
Total 11 8 55 166 210 450
Table 10.4.1

176 | P a g e
To validate null hypothesis chi square test is applied.

Value df p-value Result

Pearson Chi-Square 188.609 16 .000 Rejected

Table 10.4.1a

Above results indicate that calculated p-value is 0.00. It is lesser than standard p-value

0.05 (5% level of significance). Hence, Chi-square test is rejected. Null hypothesis is

rejected and alternate hypothesis is also accepted.

CONCLUSION: There is association between frequency of online shopping and

Adverse impact of return policies.

FINDINGS of hypothesis:

1. Respondents who are shopping occasionally will have very high adverse impact.

2. Respondents who are shopping monthly will have very low adverse impact.

3. Respondents who shop occasionally will have neutral impact on shopping

behavior

177 | P a g e
10.4.2 Adverse Impact of return policies on spending habit of consumers:
NULL HYPOTHESISH03B: There is no association between adverse impact of return

policies and spending habit of consumers.

ALTERNATE HYPOTHESISH13B: There is an association between adverse impact of

return policies and spending habit of consumers.

To test the validity of Table 10.4.2 (Annexure), chi-square test is applied.

Value df p-value Result

Pearson Chi-Square 283.549a 16 .000 Rejected

Table 10.4.2a

Above results indicate that calculated p-value is 0.00. It is lesser than standard p-value

0.05 (5% level of significance). Hence, Chi-square test is rejected. Null hypothesis is

rejected and alternate hypothesis is also accepted.

CONCLUSION: There is an association between spending intention of consumers in

online shopping and adverse impact of return policies.

FINDINGS of hypothesis:

1. There is a high adverse impact of return policies on respondents who spend

1000 to 2000₹ monthly on online apparel shopping.

2. There is very low adverse impact of return policies on respondents who spend

2000 to 5000₹ monthly on online apparel shopping.

178 | P a g e
10.5 Hypothesis 4: Association between level of Satisfaction of return policies and

demographic variables

For the study of above hypothesis following null hypothesis was designed and tested. Sub

hypothesis has been formulated and tested to find out level of satisfaction among consumers about

E-commerce’s return policies.

Null hypothesis H04: There is no association between level of Satisfaction of return

policies and demographic variables.

Alternate Hypothesis H14: There is an association between level of Satisfaction of

return policies and demographic variables.

10.5.1 Association between level of Satisfaction of return policies and consumer’s age

Null HypothesisH04A: There is no association between level of Satisfaction of return

policies and consumer’s age

Alternative HypothesisH14A: There is an association between level of Satisfaction of

return policies and consumer’s age

Return Policy satisfaction (AGE)

Sum of df Mean F Sig. Result

Squares Square
Between
2290.066 3 763.355 1.710 .164
Groups
Within Groups 199133.546 446 446.488 Accepted
Total 201423.611 449
Table 10.5.1

179 | P a g e
Above results indicate that calculated p-value is 0.000. It is greater than standard p-value

0.05. Therefore Null hypothesis is accepted and alternate hypothesis is rejected.

CONCLUSION: There is no association between the level of satisfaction and different

age groups.

To understand findings of hypothesis, mean satisfaction scores for each age group are

obtained and presented in the following table.

Return Policy satisfaction

Age group N Mean Std. Deviation

Below 20 yrs 146 71.0616 15.16813

20 to 30 yrs 222 65.9910 23.25172

30 to 40 yrs 44 68.7500 27.02550

40 to 50 yrs 38 67.7632 20.05726

Total 450 68.0556 21.18030

Table 10.5.1a

Above table indicate that Mean level of satisfaction score of respondents’ age group “below

20 years” is 71.06. Which is highest among all age groups. And satisfaction level among

respondents’ age group of 20 to 30 years is 65.99 which is least among all the age groups.

To understand significance of awareness between every two groups. POST HOC test is

applied and results are shown in table 10.5.1b (Annexure)

FINDINGS OF HYPOTHESIS:

5. There is significant level of satisfaction between respondents of age group

“below 20 years” and respondents of age group “20 to 30 years”.

180 | P a g e
6. There is no significant level of satisfaction of respondents of age group below

20 years and respondent’s age group “30 to 40 years and 40 to 50 years”.

7. There is no significant level of satisfaction of respondents of age group of 30 to

40 years and all other age groups

8. There is no significant level of satisfaction of respondents of age group of 40 to

50 years and all other age groups.

181 | P a g e
10.5.2 Association between level of Satisfaction of return policies and
consumer’s education
Null Hypothesis H04B: There is no association between level of Satisfaction of return

policies and consumer’s Education.

Alternative Hypothesis H14B: There is an association between level of Satisfaction of

return policies and consumer’s Education.

Return Policy satisfaction (EDUCATION)

Sum of Df Mean F Sig. Result

Squares Square
Between
766.387 2 383.193 .854 .427
Groups Accepted
Within Groups 200657.224 447 448.898
Total 201423.611 449
Table 10.5.2

Above results indicate that calculated p-value is 0.000. It is greater than standard p-value

0.05. Therefore, Null hypothesis is accepted and alternate hypothesis is rejected.

CONCLUSION: There is no association between the level of satisfaction and education

of consumer.

To understand findings of hypothesis, mean satisfaction level for each education level are

obtained and presented in the following table.

Return Policy satisfaction
Education N Mean Std. Deviation
12th std and below 46 70.6522 18.48749
Graduate 162 66.5123 20.50670
Post graduate and above 242 68.5950 22.08737
Total 450 68.0556 21.18030
Table 10.5.2a

182 | P a g e
Above table indicate that mean level of satisfaction of respondents’ whose education level

12th standard and below is 70.65 which is highest among all education level. And mean

level of satisfaction level of respondents’ who are graduate is 66.51 is least among all the
education levels.

To understand significance of awareness between every two groups. POST HOC test is

applied and results are shown in table 10.5.2b (Annexure)

FINDINGS OF HYPOTHESIS:

1. There is no significant level of satisfaction between respondent’s whose

education level is below 12th and all other education levels.

2. There is no significant level of satisfaction between respondent’s whose

education level is Graduate and all other education levels.

3. There is no significant level of satisfaction between respondent’s whose

education level is below Post graduate & above and all other education levels.

183 | P a g e
10.5.3 Association between level of Satisfaction of return policies and consumer’s

gender

Null Hypothesis H04C: There is no association between level of Satisfaction of return

policies and consumer’s Gender.

Alternative Hypothesis H14C: There is an association between level of Satisfaction of

return policies and consumer’s Gender.

Return Policy Satisfaction (GENDER)

Sum of df Mean F Sig. Result

Squares Square
Between
556.446 1 556.446 1.241 .266
Groups Accepted
Within Groups 200867.165 448 448.364
Total 201423.611 449
Table 10.5.3

Above results indicate that calculated p-value is 0.000. It is greater than standard p-value

0.05. Therefore, Null hypothesis is accepted and alternate hypothesis is rejected.

CONCLUSION: There is no association between the level of satisfaction and gender of

consumer.

To understand findings of hypothesis, mean level of satisfaction of apparel’s return policies

for genders are obtained and presented in the following table.

184 | P a g e
 Return Policy Satisfaction (GENDER)

Gender N Mean Std. Deviation

Male 234 69.1239 18.67906

Female 216 66.8981 23.58278

Total 450 68.0556 21.18030

Table 10.5.3a

Above table indicate that mean level of satisfaction of male respondents is 69.12 which is

significantly greater than mean satisfaction level of female respondent which is 66.89.

FINDINGS OF HYPOTHESIS:

1. The level of satisfaction among male respondents is higher than female

respondents.

185 | P a g e
10.5.4 Association between level of Satisfaction of return policies and
consumer’s occupation
Null Hypothesis H04D: There is no association between level of Satisfaction of return

policies and consumer’s occupation

Alternative Hypothesis H14D: There is an association between level of Satisfaction of

return policies and consumer’s occupation

Return Policy satisfaction (OCCUPATION)

Sum of df Mean F Sig. Results
Squares Square
Between
8839.086 3 2946.362 6.823 .000
Groups
Within Groups 192584.525 446 431.804 Rejected
Total 201423.611 449
Table 10.5.4

Above results indicate that calculated p-value is 0.000. It is less than standard p-value

0.05. Therefore F-test is rejected. Hence null hypothesis is rejected and alternate

hypothesis is accepted.

CONCLUSION: There is an association between level of satisfaction of apparel return

Policies and occupation of the respondents.

To understand findings of hypothesis, mean score for level of satisfaction according to

occupation of respondents are obtained and presented in the table

186 | P a g e
 Return Policy Satisfaction (OCCUPATION)

Occupation N Mean Std. Deviation

Self Employed 40 58.1250 22.20786

Employed 235 69.0426 20.71475

Professional 68 75.3676 20.93551

Student 107 64.9533 20.27517

Total 450 68.0556 21.18030

Table 10.5.4a

The above table indicates that mean satisfaction level for apparel’s return policy among

professionals is 75.36, which is greater than all other occupations of respondent’s.

whereas the mean score for self-employed respondent’s is least among all the occupation

of respondents i.e 58.12.

To understand the association between every two occupational groups. POST HOC test is

applied and results are shown in table 10.5.4b (Annexure)

FINDINGS OF HYPOTHESIS:

1. There is an association between self-employed respondents and Employed and

Professionals respondents.

2. There is no significant association between self-employed respondents and

Students.

3. There is an association between employed respondents and self-employed and

Professionals respondents.

187 | P a g e
4. There is no significant association between employed respondents and Student

respondents.

5. There is an association between professional respondents and self-employed,

employed and student respondents.

6. There is no significant association between student respondents and employed

self-employed respondents.

7. There is an association between student respondents and professional

respondents.

188 | P a g e
10.6 Hypothesis 5: To understand the relation between Return policy options

(knowledge) of E-commerce business and consumers purchasing behavior

For the study of above hypothesis following null hypothesis was designed and tested. Sub

hypothesis has been formulated and tested for understanding the relation between Return

policy options (knowledge) of E-commerce business and consumer purchasing behavior

Null Hypothesis H05: There is no significant relation between awareness of various

return policy options (knowledge of return policy options) of select E-commerce

Business and consumers purchasing behavior.

Alternate Hypothesis H15: There is a significant relation between awareness of

various return policy options (knowledge of return policy options) of select E-

commerce Business and consumers purchasing behavior.

10.6.1 To understand the relation between Return policy options (knowledge) of E-

commerce business and amount spent on online apparel shopping

Null Hypothesis H05A: There is no significant relation between various return policy

options (knowledge) and amount spent on online apparel shopping.

Alternate Hypothesis H15A: There is a significant relation between various return policy

options (knowledge) and amount spent on online apparel shopping.

Knowledge of Return Policy options

Sum of df Mean Square F Sig. Result
Squares
Between
11053.137 4 2763.284 14.258 .000
Groups Rejected
Within Groups 86246.383 445 193.812
Total 97299.520 449
Table 10.6.1

189 | P a g e
Above results indicate that calculated p-value is 0.000. It is less than standard p-value

0.05. Therefore F-test is rejected. Hence null hypothesis is rejected and alternate

hypothesis is accepted.

CONCLUSION: There is significant relation between various return policy options

(knowledge) and amount spent on online apparel shopping.

To understand findings of hypothesis, mean scores for each age group are obtained and

presented in the following table.

Knowledge of Return policy options

Amount spent N Mean Std. Deviation
Less than 1000₹ 31 45.55 6.506
₹1000 - 2000 160 54.90 12.633
₹2000-5000 159 54.97 14.508
₹5000 - 10000 67 42.09 14.989
More than 10000 33 56.00 18.974
Total 450 52.45 14.721
Table 10.6.1a

Above table indicate that Mean score of respondents of who spend more than 10000₹

monthly on online apparel shopping is greater than all other groups. Whereas the mean

score is least for who spend 5000 - 10000₹ monthly on online apparel shopping

To understand significance of relation between every two groups. POST HOC test is

applied and results are shown in Table 10.6.1a (annexure)

FINDINGS of hypothesis:

1. There is significant relation between knowledge of Return policy options and

amount spent on online apparel shopping for the respondents who spend Less

than ₹1000 and respondents who spend ₹1000 – 2000 and ₹2000 to 5000

190 | P a g e
2. There is no significant relation between knowledge of Return policy options and

amount spent on online apparel shopping for the respondents who spend Less

than ₹1000 and respondents who spend ₹5000- 10000

3. There is significant relation between knowledge of Return policy options and

amount spent on online apparel shopping for the respondents who spend Less

than ₹1000 and respondents who spend ₹10000 and above.

191 | P a g e
10.6.2 To understand the relation between Return policy options (knowledge) of E-

commerce business and frequency of shopping

Null hypothesis H05B: There is no significant relation between various return policy options

(knowledge) and frequency of shopping.

Alternate Hypothesis H15A: There is a significant relation between various return policy

options (knowledge) and frequency of shopping.

Knowledge of Return Policy options

Sum of df Mean F Sig. Result
Squares Square
Between
8815.087 4 2203.772 11.083 .000
Groups
Within Groups 88484.433 445 198.841 Rejected
Total 97299.520 449
Table 10.6.2

Above results indicate that calculated p-value is 0.000. It is less than standard p-value

0.05. Therefore F-test is rejected. Hence null hypothesis is rejected and alternate

hypothesis is accepted.

CONCLUSION: There is significant relation between various return policy options

(knowledge) and frequency of online apparel shopping.

To understand findings of hypothesis, mean scores for each age group are obtained and

presented in the following table.

192 | P a g e
 Knowledge of Return Policy options

Frequency of online Apparel N Mean Std. Deviation

shopping

Twice a week or more 11 40.00 .000

Weekly 8 76.00 .000

Once per two weeks 55 55.49 18.476

Monthly 166 49.25 15.706

Occasionally 210 53.94 11.851

Total 450 52.45 14.721

Table 10.6.2a

Above table indicate that Mean score of respondents of who shop weekly is greater than

all other groups i.e 76.00. Whereas the mean score is least for respondents who shop

more frequently i.e 40.00.

193 | P a g e
CHAPTER 11

FINDINGS
AND
CONCLUSION

194 | P a g e
 CHAPTER 11

MAJOR FINDINGS AND CONCLUSION

The data was obtained from 4 cities of India i.e Mumbai, Pune, Bangalore and Delhi.

The total questionnaire received were around 500 out of which 450 questionnaires

were valid and reliable. Data was collected from 171 respondents from Mumbai, 62

from Pune, 139 from Delhi and 128 from Bangalore.

1. Relation between demographic variable and Awareness of Return Policies

among consumer

Age: There is a significant difference in awareness of return policies in different

age groups. Its been observed that awareness level of Return policy in young age

group is more than the elderly age group. Awareness level for return policy is

highest among below 20 years age group which is 87.67% whereas the awareness

of return policy is found lowest in the age group of 50 years and above.

Gender: There is a significant difference in awareness of return policies among

male and female respondents. Awareness of male respondents is significantly

higher (82.05%) than the awareness of female respondents.

Occupation: There is a significant difference in awareness of return policies

according to occupation. Awareness for return policies among students is higher

(92.99%) in proportion followed by Employed, self-employed and professionals.

Education:

195 | P a g e
 There is a significant difference in awareness of return policies according to

Education of respondents. Awareness for return policies among Undergraduates is

higher (88.58%) in proportion followed by Graduates and postgraduates.

2. Awareness of Return policy options among consumers:

There is a significant difference in awareness of return policy options among

consumers on the basis of Cash back, Coupons, Product Replacement, Point

redemption etc. The awareness level about Cash back Option was highest (92.66%)

followed by Product replacement followed by redemptions and coupons.

3. Association between return policies and consumer purchasing behavior

There is a significant association between Return policies and consumer

Purchasing behavior on the basis of online purchasing spending score. Around

350 Respondents out of 450 were spending 1000 to 5000 on online apparel

shopping as the difficulty in returning their purchased products were higher than

the respondents who were spending more than 5000. Major problems associated

with online apparel purchasing were scheduling pick up for a return by shipping

carrier, contacting the E-tailer to ensure to take the product back, contacting the

E-tailer to check on the status of the return, paying the Return shipment cost etc.

4. Impact of lenient return policies on consumer purchasing behavior:

There is significant impact of easy and lenient return policies on consumer

behavior. 41% of respondents have said that cumbersome and time consuming

return policies will not motivate them to buy any product from their website.

Instead they would select other website who has easy and lenient return policies.

196 | P a g e
5. Impact of Return policies on Performance of E-commerce business

There is a significant impact of Easy and Lenient Return policies on E-commerce

business. 272 respondents said that Easy and lenient Return policies will allow them

to shop more often with the same E-tailer as well as they could strongly recommend

to their family and friends. Consumers might drop another E-tailer who provides

complicated Return policies. Consumers are more concerned about the quality of

services by the E-tailers in term of Return policy than the price of the product.

CONCLUSION

The eventual fate of E-Commerce is hard to anticipate. There are different

portions that would develop later on like: Travel and Tourism, electronic

equipment items and apparel. There are likewise some basic elements which will

fundamentally contribute to the success of the E-Commerce industry in India i.e.

Return guarantee, Replacement guarantee, M-Commerce managements, location

based services, various payment alternative, right information, shipment choice,

lawful necessity of online transactions, quick service, Terms and Conditions

ought to be clear and practical, the item quality ought to be same as appeared on

the entryway, 24/7 services, consumer satisfaction focus ought to be there. As

more individuals are getting connected with E-commerce, the interest for focus

giving E-office or digital bistro is additionally expanding.

Expanded Internet entrance, a bother free shopping condition and abnormal

amounts of Net savvies see an ever-increasing number of Indians shopping on the

197 | P a g e
web. Be that as it may, in the meantime the organizations need to diminish the

dangers identified with purchaser ineptitude by strategies, for example, making

buy sites less demanding to explore, and presenting Internet booths, PCs and

different guides in stores. The objective is not to change over all consumers to

web based acquiring, but rather to demonstrate to them it's a choice.

Notwithstanding above, endeavors should be taken to instruct the online

purchasers on the means that should be attempted while making an online buy. In

addition, the criticism of an online purchaser ought to be caught to distinguish

defects in administration conveyance. This should be possible through online

groups and web journals that fill in as promoting and showcasing apparatuses and

a wellspring of criticism for endeavors. We found that it is a test for E-advertisers

to change over low recurrence online purchasers into general purchasers through

effective web composition and by tending to worries about solid execution. Along

these lines, the internet retailing raises a larger number of issues than the

advantages it presently offers. The nature of items offered on the web and

techniques for administration conveyance are yet to be institutionalized. Till the

same is done, the purchaser is at a higher danger of misrepresentation.

India contrasts from most created markets, where consumers are making the move

from desktop to versatile for shopping on the web; those in the nation rather have

avoided the desktop stage out and out. They are progressively getting to the web

interestingly by means of cell phone, and in this manner have demonstrated an

ability to make buys on their cell phones. Versatile's share of ecommerce will

keep on growing over the new couple of years, representing 65.3% of all retail

198 | P a g e
ecommerce this year and 80.0% in 2020. The usage of powerful 4G arranges by

versatile transporters (which is as of now in progress) will drive expanding

computerized buys made by means of cell phone. What's more, the declining

expenses of 4G gadgets and administration arrangements will make it significantly

less demanding for consumers to research, peruse and purchase on cell phones. The

quantity of computerized consumers—the individuals who peruse or inquire about

items on the web yet who haven't really finished an exchange—will likewise observe

their positions become over the coming years. The quantity of computerized

purchasers—the individuals who finish an exchange carefully—will likewise observe

a solid increment over the figure time frame.

One of the key and critical consideration in online shopping is consumer

satisfaction. The apparel market is growing very quickly. Hence, the need of era is

to understand the consumer psyche and proceed accordingly, This experimental

study examined the online return policies and its influence on Consumer buying

attributes and also its impact on the apparel buyer decisions, results of the study

revealed that since online products do not give physical touch of any product

there are high chances that delivered product may not appear as it was displayed

on the website hence consumer have a choice of returning that product. Return

policy includes refund/cashback options, replacement of that product or exchange

of that product. So the apparel online stores should give more importance to

apparel buying attributes to attract and appeal the consumers, and also the

promotional programme also should be done aggressively and appropriately.

199 | P a g e
 CHAPTER 12
RECOMMENDATIONS AND
SUGGESTIONS

200 | P a g e
 CHAPTER 12

RECOMMENDATIONS AND SUGGESTIONS

In contemporary scenario, after purchase process in E-Commerce is most important so that

the Reverse logistics/Return management stands as pillar for the loyalty of the programs.

Return management does not just involve “cost” but it also involves time and stake of E-

commerce business. but most importantly, an adaptable returns strategy can help

consumer loyalty and fuel expanded deals over time. By utilizing our all-around

incorporated efficient supply chain, innovation and effective operations Return

management can be streamlined. The findings of this study indicate that the Return policy

has strong impact on E-consumers’ purchasing behavior. Positively perceived return

policy may balance the purchasing behavior of E-consumers.

It’s very common to experience “RETURNS” in fashion industry. Especially in apparel

sector where consumers buy apparels without any trials or physical touch. From this

study researcher found out that the apparels get returned to e-tailer for especially

delivered apparel is of wrong size, the portrayed apparel is different than the actual one,

wrong pattern or color differences and this situation creates lacuna between e-tailer and

consumer. As many consumers check returns policies after the purchases if at all they

need it and this situation of returning purchased items consumer find it painful. To create

differentiation between e-tailer and competitors, better consumer service is the key. As

the consumer get associated with e-tailer before and after purchases, e-tailers have to

ensure that consumer get to know everything about the Return policy and they meet with

consumer’s expectations as per e-tailer’s promise.

201 | P a g e
By keeping, investing and focusing on the characteristics of Apparels such as size, color,

pattern, brand, quality etc before delivering the products might reduce the chances of

returning the apparels which in turn would increase the satisfaction level among the E-

consumers. Based on the study conducted following suggestions and recommendations

have been formed.

12.1 Outsourcing the Return Management:

E-tailers find it very difficult to manage return management process as the major

emphasis is given on forward logistic and selling maximum products through their

portals. By outsourcing the entire reverse logistic and return management to expert

service centers can organized logistic operations, minimize costs of returns, enhance

transparency and strengthen long-lasting relationships with your valued consumers.

As maximumattention, can be given in delivering right product and reducing the returns.

12.2 Virtual gallery:

As the online purchase is a blind purchase, e-tailers can help consumers in purchase

decision making. E-tailers should build a 3600 virtual gallery of every apparel by asking

consumer about body specifications like body measurements, color preferences, skin tone

etc. which will reduce the amount of product return. By giving more guidance and

attention on consumer purchases returns can be reduced.

12.3 Specific and detailed description of Apparel:

As maximum returns took place due wrong size, quality of apparel, improper description

of apparel etc, it is recommended that e-tailer should focus more on giving detailed

description of an apparel with standard size as per location, quality of material used, type

202 | P a g e
of fitting, availability of colors and patterns etc. This would help consumer to analyze and

make purchases. This can be supported by displaying maximum with high resolution

images of actual apparel.

12.4Universal Size:

As per the brand size also differs. Because if which consumer cannot buy apparels of

right size and which leads to returning the apparels. By keeping standard/universal size of

apparels can help e-commerce companies to reduce returns to large extent.

12.5Specific time period:

In the select e-commerce businesses, this is been observed that the maximum time given

for returning the product is 30 days. By making it little flexible and having customized

return policies will grab attention of consumers’ and will allow consumer to buy more

with that e-tailer.

12.6 Clearly defining the Return policy options as per apparel conditions:

Returns for damaged/defective products:

As the defective products means the manufacturer’s fault. In this case consumer should

not held responsible and no hassles should be caused to consumers while returning the

products. There should clear return policy types stated in return policy options.

Returns for wrong delivery:

If the product which is been delivered to consumer is wrong size product, color

differences or physical appearance is as per specification, e-tailer should help consumer

in getting it replaced immediately without making any hassles. This would win-win

situations for both of them.

203 | P a g e
Return for consumer satisfaction:

At times, in order to earn consumer’s attention and appreciation, returns can be accepted

even after specific period. This would motivate the consumer to make instant decision

making about the product purchase.

Low value products:

Returns can be waived off for products whose value is lesser than the cost of Return

policies. And product value can be returned in terms of cash back, credit points etc

through which consumer attention can be gained.

Non -returnable products:

There are certain apparels which cannot be returned for hygiene purpose. But the policy

should state that clearly. As the selected company’s policies are not clear on these non-

returnable items.

12.7 Clarity in Return policy options:

The awareness should be created on existing options of Return policies with some perceived

benefits like extra points of redemptions, instant cash back options, coupons with some gift

vouchers, allowing consumers to replace purchased items with different product category etc.

This is been observed that words like damaged items. Defective items.

12.8 Focus on Clarity:

This is being observed that, in select E-commerce websites clear return policies are not

stated. Terms like exchange for few items, Replacement for few items, refund for certain

items does not give clear idea about return policies and consumer do not get clarity about

204 | P a g e
return processes.E-tailer can put their return policies for purchased product in

confirmation emails of purchases.

With simple and clear return policies consumer feel more certain, which can, thus, drive

more buys, rehash deals and positive suggestions.

12.9 Clear communication:

While consumer’s mindset cannot be changed, e-tailer should make it mandatory for

consumers to read and accept the return policies of websites for apparels, both pre-and

post-purchases. Which will ensure the clear communication between consumer and e-

tailer. The return policies should be highlighted and continuous pop-up can be shown.

Clear communication will allow e-tailers to keep transparency in transactions.

12.10 Awareness about Return procedure:

To avoid future complications from consumers, end, it’s advisable for e-tailer to create

awareness about Return procedure before sale. As the study found out that maximum

consumers do check return policies as and when its required.

Creating awareness about return procedures will direct consumer to return their product

conveniently and eventually this will build the trust among consumers.

12.11 Maintaining professionalism during return management:

E-tailer can develop a comprehensive plan to reduce the resources spent on returns and keep

consumers coming back. Even if the consumers are not happy or satisfied with their original

purchase, handling the return professionally will ensure their continued patronage.

205 | P a g e
12.12 Set expectations for your consumer:

Easy and lenient return policies will certainly contribute to E-tailer’s growth. Along with

easy and lenient return policy e-tailer should also state their expectations about returning the

purchased items like what’s the procedure for a return or exchange? Does the consumer need

to use your packaging or can they use their own? Do they need to include the order slip? Is

there a limited time in which a return or exchange can be completed? Who pays for shipping?

etc. which gives clear directions to consumers about e-tailer’s expectations.

Furthermore, company can also develop a user friendly mobile app. Include zoom

features and images of different angles.

206 | P a g e
 CHAPTER 13

SCOPE FOR FURTHER RESEARCH

207 | P a g e
 CHAPTER 13

SCOPE FOR FURTHER RESEARCH

The focus of the current research was on understanding the impact of return policies of E-

commerce business on Consumer Purchasing behavior with respect to Apparel sector in

select cities of India. The research was conducted on the basic of 450 respondent’s

feedback.

• The further search is needed with larger sample size and deeper evaluation to

generalize the results.

• The study was focused on analyzing the consumer purchasing behavior, researcher

can study the impact of Return policies on performance of E-commerce business.

• The study was limited to only Online Apparel sector, a researcher can extend

his/her study for all other products.

• The comparative study can be conducted on various E-commerce businesses

based on the Return policy option provided by them.

• Additionally, the study can be extended to the other parts of cities of India.

• The study can be conducted to compare Return policies of brick-mortar system of

shopping and online shopping.

208 | P a g e
ANNEXURE

209 | P a g e
BIBLIOGRAPHY

210 | P a g e
 BIBLIOGRAPHY
Bibliography

Alexandru M. Degeratu, A. R. (2000). Consumer Choice Behaviour in Online and

Traditional Super markets: The Effect of Brand name, Price and other attributes.

International Journal of Research in Marketing, Vol 17 , 55-78.

Aron M. Levin, Irwin P. Levin, and C. Edward Heath (2003) product Category

dependent consumer preferences for online and offline Shopping features and

their influence on multi-channel retail Alliances, Journal of Electronic Commerce

Research, VOL. 4

Bhatnagar et al. (2000). Online Risk, Conveneince and internet shopping behavior.

ACM

Cao, M., Zhang, Q., Seydel, J. (2005), 'B2C e-commerce web site quality: an

empirical examination', Industrial Management & Data Systems, Vol.105(5),

pp.645-661.

Chang, M., K., Cheung, W., Lai, V., S. (2005), 'Literature derived reference

models for the adoption of online shopping', Information & Management,

Vol.42(4), pp.543-559.

Chau, P.,Y.,K., Cole, M., Massey, A.,P., Montoya-Weiss, M., O'Keefe, R.,M.

(2002), Cultural differences in the online behavior of consumers,

Communications of the ACM, Vol.45(10), pp. 138-143.

Coolwijk, V. J. (2014). The impact of perceived return policy and website quality

on e-customers' apparel purchase and return behavior. Nederland: Open

University, Faculty of Management, Science and Technology.

211 | P a g e
Deaton, A., Muellbauer, J. (1980), Economics and Consumer Behaviour,

Cambridge: Cambridge University Press. A research about buying behaviours of

online customers

Hansen, T. and Jensen, J. M. (2009). ‘Shopping orientation and online clothing

purchases: The role of gender and purchase situation’, European Journal of

Marketing, Vol. 43 No. 9/10, pp. 1154-1170.

Hernandez, B., Jimenez, J., Martin, M., J. (2011), 'Age, gender and income: do

they really moderate online shopping behaviour?', Online Information Review,

Vol.35(1), pp.113-133.

Hofstede, G. (2001, Culture’s Consequences: Comparing Values, Behavior,

Institutions, & Organizations Across Nations, (2nd edition), Thous& Oaks, CA:

Sage Publications.

INDIA, T. H. (2016, March 26). Return policies on products bought online

nothing to cheer about. Hyderabad, India. (Accessed on 20th December 2016)

Judith, A. (2012), 'Tablets and smartphones transform the in-store customer

experience', CRM Magazine, Vol.16(1), pp.17. A research about buying

behaviors of online customers YOL11332553

Kanuk, L. S. (2003). Consumer Behavior, Eighth Edition. New Delhi: Prentice

Hall of India .

Kau, A., K., Tang, Y., E., Ghose, S. (2003), 'Typology of online shoppers',

Journal of Consumer Marketing, Vol.20(2), pp.139-156.

212 | P a g e
Kauffman, R., J., Lai, H., Ho, C., T. (2010), 'Incentive mechanism, fairness and

participation in online group-buying auctions', Electronic Commerce Research

and Applications, Vol.9(3), pp.249

Ko, H., Jung, J., Kim, J., Shim, S., W. (2004), 'Cross-cultural differences in

perceived risk of online shopping', Journal of Interactive Advertising, Vol.4(2),

pp.20-29.

Korper, S., Ellis, J. (2001), ‘Setting the vision’, The e-commerce book, building

the e-empire, San Diego: Academic Press.

Kotler, P., Armstrong, G. (2010), Principles of Marketing, (13th edition), New

Jersey: Pearson Education.

Kotler, P., Armstrong, G. (2012) , Principles of Marketing, New Jersey: Pearson

Education.

Krishna, C. V, „ Determinants of Consumer Buying Behaviour: An Empirical

Study of Private Label Brands in Apparel Retail‟, Vilakshan: The XIMB Journal

of Management, Sep2011, Vol. 8 Issue 2, pp.43-56.

Lai, L., S., L., Turban, E. (2008), 'Groups formation and operations in the Web

2.0 environment and social networks', Groups Decision and Negotiation,

Vol.17(5), pp.387-402.

Lantz, B. and Hjort, K. (2013). ‘Real e-customer behavioral responses to free

delivery and free returns’, Electronic Commerce Research, Vol. 13 No.2, pp. 183-

198.

Lazar, M.-J. (January , 2016 22). Easy Return Policy Increases Purchases.

213 | P a g e
Lee, G.,G., Lin, F.,L. (2005), 'Customer Perceptions of e-service quality in online

shopping', International Journal of Retail&Distribution Management, Vol.33(2),

pp.161-176.

Lee, M., K., O., Turban, E. (2001), 'A trust model for consumer internet

shopping', International Journal of Electronic Commerce, Vol. 6(1), pp.75-91. A

research about buying behaviors of online customers

Lee, P. M. (January 2002). Behavioral Model of Online Purchasers in E-

Commerce Environment. Electronic Commerce Research , 75-85.

Leon G. Schiffman, L. L. (1997 ). Consumer Behavior and Decision Making.

Prentice Hall,.

Lester, D., H., Forman, A., M., Loyd, D. (2008), 'Internet Shopping and Buying

Behavior of College Students', Services Marketing Quarterly, Vol.27(2), pp.123-

138.

Li, Y., Xu, L. and Li, D. (2013). ‘Examining relationships between the return

policy, product quality and pricing strategy in online direct selling’, International

Journal of Production Economics, Vol. 144 No. 2, pp. 451-460.

Li, Z. (Volume 53, Issue 13, 2015). Online versus bricks-and-mortar retailing: a

comparison of price, assortment and delivery time. International Journal of

Production Research , 3823-3825.

Mellahi, K., Johnson, M. (2000), 'Does it pay to be a first mover in e.commerce?

The case of Amazon.com, Management Decision, Vol.38, pp.445-452.

214 | P a g e
Monsuwe, P., T., Dellaert, C., G., B., Ruyter, K. (2004), 'What drives consumers

to shop online? A literature review', International Journal of Service Industry

Management, Vol.15(1), pp.102-121.

Mukhopadhyay, S.K. (2006). ‘The role of 4PL as the reverse logistics integrator:

Optimal pricing and return policies’, International Journal of Physical Distribution

& Logistics Management’, Vol. 36 No. 9, pp. 716-729.

Nazir, S., Tayyab, A., Sajid, A., Rashid, H., Javed, I. (2012), 'How online

shopping is affecting consumers buying behavior in Pakistan?', International

Journal of Computer Science Issues, Vol.9(3), pp.486-495. A research about

buying behaviors of online customers

Paswan, A. (n.d.). E-tailer‫׳‬s return policy, consumer‫׳‬s perception of return policy

fairness and purchase intention. Academia.

Petersen, J.A. & Kumar, V. (2010). ‘Can product returns make money?’, MIT Sloan

Management Review, Vol. 51 No. 3, pp. 84-89.

Poirier, C. (2006). Supply chain Management and E-commerce. San Francisco:

Berret-Koehler Publishers.

Ramaswamy. In Marketing Management. New Delhi: McMillan India Ltd.

Reinartz, W. and Kumar, V. (2002). ‘The mismanagement of customer loyalty’,

Harvard Business Review, Vol. 80 No. 7, pp. 86-94.

Research, V. (2015, January 28). Most Online Purchases are Returned Due to

Retailer Error. Hamilton, NJ.

215 | P a g e
Setoputro, R. (December 2003). Reverse logistics in e-business: Optimal price

and return policy. International Journal of Physical Distribution & Logistics

Management , 70-89.

Shaw, M., J. (2006), ‘An introduction’, E-commerce and the digital economy,

New York: M.E. Sharpe.

Singh, M. (2002), 'E-services and their role in B2C e-commerce', Managing

Service Quality, Vol. 12(6), pp. 434-446.

Smith, A., D., Rupp, W., T. (2003), 'Strategic online customer decision making:

leveraging the transformational power of the Internet', Online Information

Review, Vol.27(6), pp.418-432.

Solomon, M., Bamossy, G., Askegaard, S., Hogg, M., K. (2006), Consumer

Behavior, A European Perspective, (3rd Edition), Essex: Pearson Educated.

Stephen, A., T., Toubia, O. (2009), 'Explaining the power-law degree distribution

in a social commerce network', Social Networks, Vol.31(4), pp.262-270. A

research about buying behaviors of online customers.

Subramaniam, C., Shaw, M., S. (2002), 'A study on the value of B2B E-

commerce: The case of Web-based Procurement', Integrated Series Information

Systems, Vol.1, p.p.439-461.

Tips on Creating an Ecommerce Return Policy. (2017). , from

https://www.shopify.com/blog/4767512-9-tips-on-creating-an-ecommerce-return-

policy.

216 | P a g e
Top Ecommerce Trends to inform your 2017 marketing strategy (2017)., from

http://www.smartinsights.com/ecommerce/ecommerce-strategy/top-ecommerce-

trends-inform-2017-marketing-strategy/.

Top Ecommerce Trends to inform your 2017 marketing strategy from

http://www.smartinsights.com/ecommerce/ecommerce-strategy/top-ecommerce-

trends-inform-2017-marketing-strategy/.

Trueship. (2016, January 22). A Lenient Ecommerce Return Policy Increases

Consumer Purchases.

Uygun, M., Ozciftci, V., Divanoglu, S., U. (2011), 'Factors affecting online

shoping behaviour of consumers', Organizasyon ve Yonetim Bilimleri Dergisi,

Vol.3(2), pp.373-385.

Vasquez, D., Xu, X. (2009), 'Investigating linkages between online purchase

behavior vairables', International Journal of Retail & Distribution Management,

Vol.37(5), pp.408-419.

Wagoner, L. (2014). The dynamics of Buyer behavior and Online. United States:

Customer Think.

Wise, R., Morrison, D. (2000), 'Beyond the exchange – the future of B2B',

Harvard Business Review, Vol.78(6), pp.86-96.

Wu, S., I. (2003), 'The relationship between consumer characteristics and attitude

toward online shopping', Marketing Intelligence & Planning, Vol.21(1), pp.37-44.

www.scmr.com. Reverse Logistics. from

http://www.scmr.com/article/effective_returns_management_in_an_integrated_su

pply_chain.

217 | P a g e
 Zhou, L., Dai, L., Zhang, D. (2007), 'Online shopping acceptance model-A

critical survey of consumer factors in online shopping', Journal of Electronic

Commerce Research, Vol.8(1), pp.41-62

Webliography:
Consumer World: Return Policies, Return Policy. Retrieved from

http://www.consumerworld.org/pages/returns.htm.

E-commerce Facts (2012), 'Eurostat: 43 percent of Europeans make purchases

online', [online] Available at: http://www.e-

commercefacts.com/research/2012/05/eurostat-eu-online-shoppi/ [accessed on

10th January 2017]

Financial Times (2012), [online] Available at:

http://lexicon.ft.com/Term?term=e_commerce [accessed on 10 August 2016] Five

Ways To Create An eCommerce Return Policy That Drives New .... (2017). ,

from http://blog.capterra.com/5-ways-to-create-an-ecommerce-return-policy-that-

drives-new-sales/.

GELF NYC '17 | http://www.globalecommerceleadersforum.com/gelf-nyc-17/.

Ghosal, S. (2016, July 18). Retrieved from

http://economictimes.indiatimes.com/news/economy/foreign-trade/textile-

sector-to-grow-at-6-to-40-billion-in-fy2017/articleshow/53264283.cms

Global E. from http://e-commercefacts.com/.

Global e. from

http://economictimes.indiatimes.com/industry/services/retail/global-e-

commerce-market-is-worth-22-trillion-unctad/articleshow/53274475.cms.

218 | P a g e
Global E. from http://www.globalecommerceleadersforum.com/.

Global E. from http://www.technavio.com/report/global-media-and-

entertainment-services-global-e-commerce-market-2016-2020.

Global eCommerce & Fraud Trends for 2017 from

https://blog.riskified.com/global-ecommerce-fraud-trends-2017/.

Groupon (2012) , About, [online] Available at: http://www.groupon.com/about, A

research about buying behaviors of online customers

Hackl, G. (2004), 'Online group buying, an overall view of the development by

means of different sellers', Seminar aus Informations wirtschaft, [online]

Available at:

http://scholar.googleusercontent.com/scholar?q=cache:mF24zinEglQJ:scholar.go

ogle.com/+online+group+buying&hl=tr&as_sdt=0

Hillman, S., Neustaedter, C., Bowes, J., Antle, A. (2012), 'Soft trust and

mCommerce shopping behaviors', [online] Available at:

http://carmster.com/clab/uploads/Main/SoftTrustMobileHCI.pdf. A research

about buying behaviors of online customers.

How to Design a Return Policy. (2017). , from https://hbr.org/2016/08/how-to-

design-a-return-policy.

How To Write An Ecommerce Return Policy and a Refund Policy .... (2017). ,

from https://www.bigcommerce.com/blog/create-a-returns-and-exchanges-policy-

that-sells/.

219 | P a g e
Internet Marketing Ninjas (2012), 'Online shopping trends tell tales', [online]

Available at: Internet Retailer (2011), [online] Available at:

http://www.internetretailer.com/2011/02/17/e-commerce-sales-rise-148-2010

Internet Retailer (2012), [online] Available at:

http://www.internetretailer.com/2012/02/27/e-retail-spending-increase-45-2016

Internet World Stats (2012), 'Internet Usage Statistics', [online] Available at:

http://www.internetworldstats.com/stats.htm

Jain, H. (n.d.). Role of E-commerce in Apparel Fashion. Retrieved from

FIBRETOFASHION.COM: http://www.fibre2fashion.com/industry-

article/7511/role-of-e-commerce-in-apparel-fashion

Jessica Dickler. Retailers with the best (and worst) return policies. Retrieved from

http://www.cnbc.com/2016/11/25/retailers-with-the-best-and-worst-return-

policies.html

Linda D Farmer. Indirect Cost Return Policy. https://cns.utexas.edu/strategic-

research-initiatives/college-research-policies/indirect-cost-return.

Makelainen, S.,I. (2006), 'From B2C to C2C e-commerce', University of Helsinki,

[online]Availableat:http://www.groundswell.fi/sim/academic/(sim)%20From%20

B2C%20to%20C2C%20e-commerce.pdf

Muzumdar, P. (2011), 'Online bookstore-a new trend in textbook sales management

for services marketing' Journal of Management and Marketing Research, [online]

Available at: http://www.aabri.comwww.aabri.com/manuscripts/11987.pdf

220 | P a g e
Retailer Return Policies: What Shoppers Want, What Stores Need .... Retrieved

from http://business.time.com/2012/09/04/why-a-good-return-policy-is-so-

important-for-retailers/.

Retailers With the Best Return Policies. Retrieved from

http://www.kiplinger.com/article/spending/T050-C011-S001-retailers-with-the-

best-return-policies.html.

Return Policies. (2017)., from

http://bookstore.belmont.edu/SiteText.aspx?id=29648.

Return Policy. (2017). , from http://www.waspbarcode.com/support/return-policy.

Returning Orders, Receiving Refunds and Restarting Subscriptions from

https://knowledge.autodesk.com/customer-service/account-

management/subscription-management/manage-contracts/renew-

cancel/cancellation-refund-policy.

Rigby, D. (2012), 'The future of shopping', Harvard Business Review, [online]

Available at: http://cormolenaar.nl/wp-content/uploads/2012/02/The-Future-of-

Shopping-Harvard-Business-Review1.pdf

Rowe, S. D. (2016, March). Return Policies Affect Consumer Behavior. Retrieved

from Destinationcrm.com: http://www.destinationcrm.com/Articles/Columns-

Departments/Insight/Return-Policies-Affect-Consumer-Behavior-109294.aspx

https://www.stechies.com/sap-helps-ecommerce-ride-cart-success-shopping-cart-

eportal-87762/

SALE & RETURN POLICY — Rainwater Management Solutions. (2017). , from

https://www.rainwatermanagement.com/sale-return-policy/.

221 | P a g e
 Sample Return Policy for ecommerce stores. (2017), from

https://termsfeed.com/blog/sample-return-policy-ecommerce-stores/.

SlideShare (2011), [online] Available at:

http://www.slideshare.net/Gridleyco/billion-dollar-babies-trends-and-

opportunities-in-the-new-ecommerce-world-7580212

Strategic Initiatives, Policy & Analysis from

http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=8e6552cc66061410Vg

nVCM10000071d60f89RCRD.

We are social (2012), [online] Available at:

http://wearesocial.net/blog/2012/05/people-spend-time-online/

What's in Store for the Ecommerce and Payments Industry in 2017 .... (2017). ,

from http://www.financemagnates.com/fintech/bloggers/whats-store-ecommerce-

payments-industry-2017/.

Worldwide Retail Ecommerce Sales Will Reach $1.915 Trillion This .... (2017). ,

from https://www.emarketer.com/Article/Worldwide-Retail-Ecommerce-Sales-

Will-Reach-1915-Trillion-This-Year/1014369.

Yarrow, K. (2014, September 04). Why a Good Return Policy Is So Important for

Retailers. Retrieved from http://business.time.com:

http://business.time.com/2012/09/04/why-a-good-return-policy-is-so-important-

for-retailers/

Books/Articles:

Crafting a Returns Policy that creates a competitive advantage online, April 2008,

Forrester Consulting

222 | P a g e
East, R., Vanhuele, M., Wright, M. (2008), Consumer Behaviour, Applications in

Marketing, London: Sage Publications.

CMAI. (2013). Apparel industry to triple revenue by 2020: CMAI report.

Mumbai: Hindustan Times.

Devaraj, S., Fan, M. and Kohli, R. (2003). ‘E-loyalty-elusive ideal or competitive

edge’, Communications of the AMC, Vol. 46 No. 9, pp. 184-191.

Erdogmus, I., E., Cıcek, M. (2011), 'Online group buying; what is there for the

consumers?', Procedia Social and Behavioral Sciences, Vol.24, pp.308-316.

Ge, T. (2016). The Impact of E-Commerce on the Clothing Retailers: Studies on

Chinese Companies. China: IGI Global.

Gefen, D., Straub, D., W. (2004), 'Consumer trust in B2C e-commerce and the

importance of social presence: experiments in e-products and e-services, Omega,

Vol.32(6), pp.407-424.

Gummesson, E., Polese, F. (2009), 'B2B is not an island!', Journal of Business &

Industrial Marketing, Vol.24(5), pp.337-350.

Hamill, J. (1997), 'The Internet and international marketing', International

Marketing Review, Vol.14(5), pp.300-323.

Hanks, J. (2015). Drop Shipping: How to Manage Returns. Practicle Ecommerce.

Hasan, B. (2010), 'Exploring gender differences in online shopping attitude',

Computers in Human Behavior, Vol.26(4), pp.597-601

Hjort, K., Lantz, B., Ericsson D. and Gattorna J. (2013). ‘Customer segmentation

based on buying and returning behavior’, International Journal of Physical

Distribution & Logistics Management, Vol. 43 No. 10, pp. 852-865.

223 | P a g e
Hoffman, D., L., Novak, T., P. (1996), 'Marketing in hypermedia computer-

mediated environments: conceptual foundations'.

PWC, (August 2014), Evolution of E-commerce in India.

N, S. U. (2014). Factors that have changed consumer buying behaviour in India.

Chennai: Times of India.

224 | P a g e
QUESTIONNAIRE

225 | P a g e
 QUESTIONNAIRE

“Impact of reverse Logistic (Return Policies) on E-commerce and its influence on consumer purchasing
behavior; a study with reference to apparel sector in selected E-commerce businesses in select tier I and
tier II cities of India”
_____________________________________________________________________________________
Dear respondent,
This questionnaire is aimed at understanding your perception about Reverse Logistic or Return Policies of
Apparel E-tailers in India .Your response will be dealt with strict confidentiality and it will be used only for
academic purpose.

Please tick the appropriate boxes.

1. Age Group:
a. < 20yrs b. 20 – 30 yrs c. 30-40 yrs d. 40-50 yrs

2. Gender:
a. Male b. Female c. Others

3. Occupation:
a. Self Employed b. Employed c. Professional d. Student

4. Education:
a. 12th Std and below b. Graduate c. Postgraduate and above

5. Annual Income in .
a. Upto 2 lacs b. 2 – 5 lacs c. 5 – 7lacs d. 7lacs and above

6. Marital Status:
a. Unmarried b. Married c. Others

7. Did you make any purchase using the internet (E Tailing) in the past?
a. Yes b. No

8. What items did you purchase?

a. Books, Magazines & Audible b. Movies, Music & Games
c. Electronics, Mobiles & Computers d. Home and living
e. Fragrances, Beauty & Health f. Toys, Kids & Baby
g. Apparels & Accessories h. Footwear

226 | P a g e
i. Fitness, Sports & Outdoors j. Watches
k. Daily or Grocery l. Other

9. Which Website you prefer to buy these items?

a. Flipkart.com
b. Amazon.com
c. Ebay.com
d. Snapdeal.com
e. Shopclues.com
d. Any other, please specify______________________________

10. Please specify the reason for choosing this website?

______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

11. Which website you prefer for online Apparel shopping?

a. Flipkart.com b. Myntra.com
c. Amazon.com d. Limeroad.com
e. Jabong.com f. Any other
___________________________________

12. How often do you shop Apparel online?

a. Twice a week or more b. Weekly c. Once per two weeks
d. Monthly e. Occasionally

13. How much do you spend on Apparel’s online shopping?

a. < 1000 b. 1000 – 2000 c. 2000 – 5000 d. 5000-10000 e. > 10000

14. What type of clothing items do you purchase online?

a. Tops-tees and shirts b. b. Dresses and Kurtas
c. Salwars and Chudidars d. d. Trousers and Jeans
e. Sarees and Dress materials f. Sweaters and Jackets
g. Shorts and Skirts h. Lingerie and Nightwear
i. Any other ________________________________________________________________________
15. Which of the following do you think are problems associated with online purchasing of Apparels?
a. Cost of Shipping/ delivery charges too high

227 | P a g e
b. Difficult to return purchased items c.
Takes too long to receive deliveries d.
Dislike sharing payment information
e. Any other, please Specify____________________________________________________________

16. Are you aware of the Return policies?

a. Fully aware b. Mostly aware c. Partially aware d. Not Aware

17. Which of the following Return policy options are you aware about?

1-Strongly Unaware & Strongly Strongly

Not aware Don’t bother Aware
5-Strongly aware unaware Aware

Cash back

Coupons

Replacements for that item

Point redemption

18. When do you look in for an E-tailers return policy?

a. Before purchasing an items b. After, if need to return items
c. Both, before and after d. Not at all

19. Are the terms and conditions of Return policy clearly stated by E-Tailer?
a. Yes b. No

20. Have you ever returned clothing items which you purchased in the past?
a. Yes b. No

21. Why have you returned clothing items which you purchased in the past?
a. Wrong size b. color differences c. Wrong Pattern
d. Brand Differences e. Item received was not as portrayed online
f. Damaged/defective item g. Poor packaging h. Poor Quality
i. Any other
__________________________________________________________________________________
22. Did you face any difficulty in returning the items?
a. Yes b. No

23. According to you while returning the items, What are the possible risks involved?

228 | P a g e
a. Financial Risk b. Product Risk c. Security Risk

24. How much time did you spend dealing with the complete return process?
a. Less than a day b. 1-2 days c. 2-3 days d. 3-5 days e. More than 5 days

25. To what extent you are satisfied with return policy of E-Tailers?
a. Least satisfied b. Partially Satisfied c. Mostly Satisfied
d. Completely Satisfied

26. On the scale of 1- 5, please rate the following actions often associated with returning
items purchased online?
1- Extremely Difficult and 5 - Extremely Extremely
Difficult Neutral Easy
Extremely Easy Difficult Easy
Paying the cost of return to shipping
carrier
Going to shipping carrier to send a
return back
Scheduling a pick up for a return by
shipping carrier
Contacting the E-tailer to ensure they
will take the return or to get the return

Repackaging the item

Contacting the E-tailer to check on the

status of the return

27. Is there any adverse impact on your frequency of shopping or volume of shopping based on level
of satisfaction?
a. Very high b. high c. Neutral d. Low e. Very low

28. If, E-tailers offer lenient, easy to understand Return Policy, which options will you choose?
a. Shop more often with that E-
tailer b. Recommend to a friend
c. Drop another E-tailer with a less easy return policy

229 | P a g e
d. Focus less on prices and more on their quality of
services e. All of the above
f. Any other _________________________________________________________________________

---------------------------------------------------------------------------------------------------------------------
Thank you so much for spending your valuable time to fill this Questionnaire.

230 | P a g e
SPSS DATA SHEETS

231 | P a g e
 SPSS DATA SHEETS
Score of Awareness of Return Policies(Age)

Age Group Age Group Mean Std. p-value Significance

Difference Error

20 to 30 yrs -9.96853 1.97737 .000 Significant

Below 20 yrs 30 to 40 yrs -26.87578 3.19147 .000 Significant
40 to 50 yrs -33.72386 3.37954 .000 Significant
Below 20 yrs 9.96853 1.97737 .000 Significant
20 to 30 yrs 30 to 40 yrs -16.90725 3.06235 .000 Significant
40 to 50 yrs -23.75533 3.25788 .000 Significant
Below 20 yrs 26.87578 3.19147 .000 Significant

30 to 40 yrs 20 to 30 yrs 16.90725 3.06235 .000 Significant

Non-
40 to 50 yrs -6.84809 4.10965 .096
Significant
Below 20 yrs 33.72386 3.37954 .000 Significant

40 to 50 yrs 20 to 30 yrs 23.7553 3.25788 .000 Significant

Non-
30 to 40 yrs 6.84809 4.10965 .096
Significant
Table 10.2.1b

232 | P a g e
Score of Awareness of Return Policies(Education)

Education Education Mean Std. Sig. Significance

Difference Error
(I-J)
Significant
Graduate -8.80301 3.45886 .011
12th std and
below Post graduate and -15.13654 3.33002 .000 Significant
above
12th std and Significant
8.80301 3.45886 .011
below
Graduate
Post graduate and Significant
-6.33354 2.10166 .003
above
12th std and Significant
15.13654 3.33002 .000
Post graduate below
and above Significant
Graduate 6.33354 2.10166 .003

Table 10.2.2b
Score of Awareness of Return Policies(Occupation)

Occupation Occupation Mean Std. Error Sig. Significance

Difference
(I-J)

Employed -9.72074* 3.19763 .003 Significant

Self Employed Professional -20.62500* 3.72524 .000 Significant
Student 9.86565* 3.46468 .005 Significant
Self Employed 9.72074* 3.19763 .003 Significant
Employed Professional -10.90426* 2.57430 .000 Significant
*
Student 19.58640 2.18029 .000 Significant
*
Self Employed 20.62500 3.72524 .000 Significant
*
Professional Employed 10.90426 2.57430 .000 Significant
*
Student 30.49065 2.89934 .000 Significant
Self Employed -9.86565* 3.46468 .005 Significant
Student Employed -19.58640* 2.18029 .000 Significant
Professional -30.49065* 2.89934 .000 Significant
Table 10.2.4b

233 | P a g e
 Table 10.4.2
Adverse impact on Spending habit Total
shopping Less than 1000 to 2000 to 5000 to More than
1000 2000 5000 10000 10000
Count 0 0 49 14 0 63
Very low Expected
4.3 22.4 22.3 9.4 4.6 63.0
Count
Count 0 6 23 18 0 47
Low Expected
3.2 16.7 16.6 7.0 3.4 47.0
Count
Count 11 87 53 35 0 186
Neutral Expected
12.8 66.1 65.7 27.7 13.6 186.0
Count
Count 20 32 26 0 33 111
High Expected
7.6 39.5 39.2 16.5 8.1 111.0
Count
Count 0 35 8 0 0 43
Very
Expected
high 3.0 15.3 15.2 6.4 3.2 43.0
Count
Count 31 160 159 67 33 450
Total Expected
31.0 160.0 159.0 67.0 33.0 450.0
Count

234 | P a g e
 Age group Age group Mean Std. Sig. Result
Difference Error
(I-J)

20 to 30 yrs 5.07065 2.25152 .025 Significant

Below 20 yrs 30 to 40 yrs 2.31164 3.63395 .525 Non - Significant

40 to 50 yrs 3.29849 3.84809 .392 Non – Significant

Below 20 yrs -5.07065 2.25152 .025 Significant

Non – Significant
20 to 30 yrs 30 to 40 yrs -2.75901 3.48693 .429

40 to 50 yrs -1.77217 3.70957 .633 Non – Significant

Below 20 yrs -2.31164 3.63395 .525 Non – Significant

Non – Significant
30 to 40 yrs 20 to 30 yrs 2.75901 3.48693 .429

40 to 50 yrs .98684 4.67944 .833 Non – Significant

Below 20 yrs -3.29849 3.84809 .392 Non - Significant

Non - Significant
40 to 50 yrs 20 to 30 yrs 1.77217 3.70957 .633

30 to 40 yrs -.98684 4.67944 .833 Non - Significant

Table 10.5.1b

235 | P a g e
 Education Education Mean Difference Std. Sig. Significant
(I-J) Error

Non
Graduate 4.13983 3.53972 .243
12th std and Significance
below Post graduate and Non
2.05713 3.40787 .546
above Significance
12th std and Non
-4.13983 3.53972 .243
below Significance
Graduate
Post graduate and Non
-2.08270 2.15080 .333
above Significance
12th std and Non
Post -2.05713 3.40787 .546
below Significance
graduate and
Non
above Graduate 2.08270 2.15080 .333
Significance
Education Education Mean Difference Std. Sig. Significant
(I-J) Error

Non
Graduate 4.13983 3.53972 .243
12th std and Significance
below Post graduate and Non
2.05713 3.40787 .546
above Significance
12th std and Non
-4.13983 3.53972 .243
below Significance
Graduate
Post graduate and Non
-2.08270 2.15080 .333
above Significance
12th std and Non
Post -2.05713 3.40787 .546
below Significance
graduate and
Non
above Graduate 2.08270 2.15080 .333
Significance
Table 10.5.2b
236 | P a g e
 Mean Std. p-value Significance
Occupation Occupation Difference (I- Error
J)

Employed -10.91755* 3.55423 .002 Significant

Self
Employed Professional -17.24265* 4.14067 .000 Significant
Student -6.82827 3.85106 .077 Non-Significant
Self Significant
Employed 10.91755* 3.55423 .002
Employed
Professional -6.32509* 2.86138 .028 Significant
Student 4.08928 2.42343 .092 Non-Significant
Self Significant
Employed 17.24265* 4.14067 .000
Professional
Employed 6.32509* 2.86138 .028 Significant
*
Student 10.41438 3.22267 .001 Significant
Self Non- Significant
6.82827 3.85106 .077
Employed
Student
Employed -4.08928 2.42343 .092 Non – Significant
Professional -10.41438* 3.22267 .001 Significant
Table 10.5.4b

237 | P a g e
Score of knowledge of Return policy options

Amount Amount spent Mean Difference Std. Error Sig. Result

spent Monthly (I-J)
Monthly
₹1000 - 2000 -9.352* 2.732 .001 Significant
Less than ₹2000 - 5000 -9.420* 2.733 .001 Significant
1000₹ ₹5000 - 10000 3.459 3.024 .253 Non-Significant
More than ₹10000 -10.452* 3.482 .003 Significant
Less than 1000₹ 9.352* 2.732 .001 Significant
₹1000 - ₹2000-5000 -.069 1.559 .965 Non-Significant
2000 ₹5000 - 10000 12.810* 2.026 .000 Significant
More than 10000₹ -1.100 2.662 .680 Non-Significant
Less than 1000₹ 9.420* 2.733 .001 Significant
₹2000- ₹1000 - 2000 .069 1.559 .965 Non-Significant
5000 ₹5000 - 10000 12.879* 2.028 .000 Significant
More than 10000₹ -1.031 2.663 .699 Non-Significant
Less than 1000₹ -3.459 3.024 .253 Non-Significant
₹5000 - ₹1000 - 2000 -12.810* 2.026 .000 Significant
10000 ₹2000-5000 -12.879* 2.028 .000 Significant
More than 10000₹ -13.910* 2.961 .000 Significant
Less than 1000₹ 10.452* 3.482 .003 Significant
More
₹1000 - 2000 1.100 2.662 .680 Non-Significant
than
₹2000-5000 1.031 2.663 .699 Non-Significant
10000₹
₹5000 - 10000 13.910* 2.961 .000 Significant
Table 10.6.1a

238 | P a g e
 Score of knowledge of Return policy options
Frequency of online Frequency of online Mean Std. Error Sig. Result
apparel shopping apparel shopping Difference
(I-J)
Weekly -36.000* 6.552 .000 Significant
*
Once per two weeks -15.491 4.657 .001 Significant
Twice per week or more Non-
Monthly -9.253* 4.390 .036 Significant

Occasionally -13.943* 4.362 .001 Significant

*
Twice per week or more 36.000 6.552 .000 Significant
*
Once per two weeks 20.509 5.336 .000 Significant
Weekly
*
Monthly 26.747 5.104 .000 Significant
*
Occasionally 22.057 5.080 .000 Significant
*
Twice per week or more 15.491 4.657 .001 Significant
*
Weekly -20.509 5.336 .000 Significant
*
Once per two weeks Monthly 6.238 2.194 .005 Significant
Non-
Occasionally 1.548 2.136 .469
Significant
Non-
Twice per week or more 9.253* 4.390 .036 Significant

Monthly Weekly -26.747* 5.104 .000 Significant

Once per two weeks -6.238* 2.194 .005 Significant

*
Occasionally -4.690 1.464 .001 Significant
Twice per week or more 13.943* 4.362 .001 Significant
*
Weekly -22.057 5.080 .000 Significant
Occasionally Non
Once per two weeks -1.548 2.136 .469
Significant

Monthly 4.690* 1.464 .001 Significant

Table 10.6.2b

239 | P a g e