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INTERNSHIP REPORT ON

A STUDY ON THE USAGE OF MOBILE APPS FOR PURCHASES


BY
NAGDARSHAN G S VEDANTHI
USN: 1AT13MBA20
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE

EXTERNAL GUIDE

Mrs. Archana R Motta

Mr. Sourabh Sanyal

Asst. Professor

Project Manager

Atria Institute of Technology

Odigma

Bengaluru-24

Bengaluru - 43

MBA PROGRAMME
P.G DEPARTMENT OF MANAGEMENT STUDIES AND RESEARCH CENTRE
ATRIA INSTITUTE OF TECHNOLOGY
ANAND NAGAR, BENGALURU -560024
BATCH 2013-2015

www.odigma.com

CERTIFICATE

To Whomsoever it may concern

This is to confirm Mr. Nagdarshan G S Vedanthi (USN: 1AT13MBA20) has completed summer
internship over the topic A study on the usage of mobile apps for purchases Starting from 8th
Dec 2014 to 20th Feb 2015.
His findings were helpful to organization & he carried himself with discipline throughout his
project stint.
We wish him all the best for his future assignments.
Sincerely
Sourabh Sanyal
Project Manager
ODigMa

ODigMa Consultancy Solutions Pvt. Ltd,


308, VarsNottinghill, 111 HoysalaNgr, Ramamurthy Nagar, Bangalore, Karnataka India 560016.
Ph +91.80.40951342; 91.9972610674.
Service Tax No.AABCO4323QSD001.

CERTIFICATE

. o \

This is tp certifythat Nagdarshan


G s vedanthi bearingusN IATI3MBA20,
is a bonafide
sfudentof Masterof BusinessAdministration
courseof the instituteBatch 20r3-20rs,a{Iiliated
to visvesvarayaTechnologicalUniversity,
Belagavi,Internshipreporton ..A study
on the usage
of mobile apps for purchases"is prepared
by him under the guidanceof Mrs
Archana R
Motta in partial fulfillment of the
requirementsfor the award of the
degreeof Master of
BusinessAdministrationof Visvesvaraya
Technorogicar
:' r
univeffib-_glagati
*^*^;:

Mrs. ArchanaR Motta


(InternalGuide)

Dr. K.S.Bhat
(Headof theDepartment)

(Prindipal)

DECLARATION

I Nagdarshal G S Vedanthi, herebydeclarethat the Intemship report


entitled ,,A study on the
usage of mobile apps for purchases" with referenceto ODigMa, Bengaluru
is preparedby me
under the guidanceof Mrs Archana R Motta, faculty of M.B.A Department,
Atria Institute of
Technologyandextemal assistanceBy Mr. Sourabh Sanyal, Project manager
at ODigMa.
I also declare that this Intemship work is towards the partial fulfillment of
the
university regulations for the award of degree of Master of
-Bwiness,,A inistration by
VisvesvarayaTechnologicalUniversity, Belagavr.
I have undergone a summer project for a period of twelve weeks. I
further
declare that this project is based on the original study undertaken by me
and has not been
submittedfor the award of any degree/diplomafrom any other University/Institution.

ptace:$orrq1dla,...s

oate:
ovf o+f z-o.s

Nagdarshan G S Vedanthi
(lAT13MBA20)

ACKNOWLEDGEMENT

To acknowledge what one has done is a credit to those individuals.


I would like to thank Mr. Sourabh Sanyal, Project Manager, ODigMa for giving me an
opportunityto do my project in their organization,and also for guiding me during the project.
I would like to expressmy gratitude to other staff membersof ODigMa, for giving me all the

supportin thecompletionof my project.


I sincerely thank our college principal Dr. K.S. Rajanandamfor giving me an opporfunity to
cary out the project.
My sincere thanks to our Head of the Department Dr. K. S. Bhat for the support during the
project.
I sincerelythank my guide Asst. Prof. Archana R Motta for being a sourceof inspiration and
guiding me with her valuable advice and encouragement.
Finally I would like to thank my Parents and Friends who are really a sourceof support and
encouragement.
Thank you one and all.

Date:

o+/o t, /t*ts

Nagdarshan G S Vedanthi

Place:

h',y")d\.

(lATl3MBA20)

Table of Contents
Chapter

Particulars

Page no

Executive Summary
1.

Introduction

2.

Industry And Company Profile

3.

Theoretical Background Of The Study

26

4.

Data Analysis And Interpretation

40

5.

Summary Of Findings, Suggestions And Conclusion

68

Bibliography

70

Annexure

71

LIST OF TABLES
Table No
Table-4.1
Table-4.2
Table-4.3
Table-4.4
Table-4.5
Table-4.6
Table-4.7
Table-4.8
Table-4.8a
Table-4.8b
Table-4.8c
Table-4.8d
Table-4.8e
Table-4.8f
Table-4.8g
Table-4.8h
Table-4.8i
Table-4.8j
Table-4.9a
Table-4.9b
Table-4.9c
Table-4.9d
Table-4.9e
Table-4.f
Table-4.9g
Table-4.9h
Table-4.9i

Particulars
Age
Annual Family Income
Occupation
Marital Status
Educational Qualification
Gender
Do you use Mobile Apps?
Do you purchase through Mobile apps?
Which of the following apps have you used for purchase?
What type of products/services have you purchased by mobile apps?
For how long have you been using Mobile apps for purchasing products/services?
What is the proportion of your purchases through apps in comparison to through websites?
Do you feel Secured while purchasing and paying through apps?
Who influenced you to purchase through apps?
How often do you purchase through mobile apps?
Do you prefer mobile apps for purchase over websites?
Do you get attracted by the offers and discounts given by the company for purchasing?
Will you be using Mobile apps for purchases in future also?
Why dont you use Mobile apps for purchases?
Do you carry out online purchases?
How often do you shop online?
Do you feel that only through websites purchasing and paying is secured?
If purchasing through apps becomes easier than websites, would you purchase
through apps?
Does promotional offers and discounts attract you to install and purchase through apps?
Do you find websites are more user friendly than mobile apps?
Will you start purchasing through apps if other people influence you?
Will you be interested to install and purchase through mobile apps in future?

Pg No
40
41
42
43
44
45
46
47
48
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

LIST OF CHARTS

Table No
Chart-4.1
Chart-4.2
Chart-4.3
Chart-4.4
Chart-4.5
Chart-4.6
Chart-4.7
Chart-4.8
Chart-4.8a
Chart-4.8b
Chart-4.8c
Chart-4.8d
Chart-4.8e
Chart-4.8f
Chart-4.8g
Chart-4.8h
Chart-4.8i
Chart-4.8j
Chart-4.9a
Chart-4.9b
Chart-4.9c
Chart-4.9d
Chart-4.9e
Chart-4.9f
Chart-4.9g
Chart-4.9h
Chart-4.9i

Particulars
Age
Annual Family Income
Occupation
Marital Status
Educational Qualification
Gender
Usage of mobile apps
Purchases through Mobile apps
Types of apps for purchase
Types of products/services purchased.
Duration of purchasing through apps.
Proportion of purchase
Feeling Secured
Influence for purchasing through apps.
Interval of purchase
Preference between apps and websites
Level of getting attracted
User's Decision
Reasons.
Online purchases
Frequency of purchases.
Buyer's view.
User's view.
Level of getting attracted.
User's View
Level of Influence
Willingness to purchase through apps in future

Pg No
40
41
42
43
44
45
46
47
48
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Digital marketing is an Industry that makes use of electronic devices (computers) such
as personal computers, smartphones, cellphones, tablets and game consoles to market the product
or a service. Digital marketing applies technologies or platforms such as websites, e-mail, apps
and social networks. Digital Marketing can be through Non-internet channels like TV, Radio,
SMS, etc. or through Internet channels like Social Media, E-mails ads, Banner ads, etc. Social
Media Marketing is a component of digital marketing.
Internet and Mobile phones have changed the lifestyles of each and every individual, more than
anything else the purchasing styles of individuals have also changed to a certain level where
people tend to buy through websites and mobile apps. Therefore the researcher here has chosen a
topic as A Study on the usage of mobile apps for purchases.

The objective of the study is to study the various applications available for shopping over mobile
phones, to study mannerisms of the buyers while purchasing through the apps and What
Perception of buyers and non-buyers through mobile apps and to know why remaining customers
dont buy through apps.

The current research design adopted for study in Descriptive Research. The source of primary
data in this study is through structured questionnaire and personal visits. Secondary data were
collected through Web, Magazines & Journals and Newspapers. Non probability sampling has
been chosen for the study. The sampling method adopted was convenient sampling and 100 was
the sample size.The data collected were edited to eliminate errors and omissions.

Majority of the respondents are young men, well educated, single, students & working
executives in the lower middle class income group. Flipkart apps followed by amazon and
snapdeal are more popular among the respondents. Purchases of groceries are still preferred to
be done through retail outlets and not apps. Advertisements and offers seem to attract the
respondents to purchase through apps. The frequency of purchase through apps is only
occasionally or monthly.

It is suggested that the frequency of purchase by the respondents can be increased from the
current monthly to weekly by giving incentives through frequency programs.Apps can be
popularized through advertisements to increase its awareness and usage.Customers may be given
incentives to try to use mobile apps as it is found that once the customer uses the apps, they are
found to be comfortable with the app usage.

The researcher would conclude that there are more number of smart phone users who have used
apps and also use apps for purchases, but there are certain respondents who still dont use apps
for purchases the above suggestions and findings would help the company to increase the
number of purchases through mobile apps.The future is bright for the smart phones and hence
there is bound to be great opportunity for the marketers to promote their product sales through
mobile apps.

Chapter1
Introduction

A Study on The Usage of Mobile apps for Purchases

1.1 Introduction about the internship


I feel immensely proud to present this project report after doing the internship in ODigMa. I
have carried out 10 week internship in the above mentioned company and I was also helped to
know about the digital marketing industry with the help of this internship. Not only about the
industry, I was also helped in getting acquainted to the office environment and understand the
roles and responsibilities of an employee in a company.

During my Internship Project at ODigMa, I investigated the opportunities where SEO, SEM,
SMM could be effectively used. Importance of a search engine results, how users scan results
pages, how users clicks on the results. Project Started by learning and understanding all
techniques of SEO and the report describes about both on page and off page techniques of SEO,
How to analyze a website and also importance of content marketing in increasing page rank .

1.2 Topic Chosen for Study


Nowadays, by the advancement of science all are using various facilities available for mankind.
In those facilities Internet and Mobile phones have changed the lifestyles of each and every
individual, more than anything else the purchasing styles of individuals have also changed to a
certain level where people tend to buy through websites and mobile apps. This is one of the
recent trends which grab the attention of researchers to carry out a study on this topic.
Therefore the researcher here has chosen a topic as A Study on the usage of mobile apps for
purchases.

1.3 Need for the Study


Gradually by time Mobile phones are more in use and internet is more used through mobile than
computers. The need here would be to understand that what type of individuals use what type of
apps in order to purchase certain goods relevant to them.
For example Purchasing behavior would differ from individual to individual. It is never same
with all. Like the purchasing of a Techie is not the same as a student.
Here the Researcher would like to study the Behavior, Usage and the Re-buying Attitudes of
Individuals.
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A Study on The Usage of Mobile apps for Purchases

1.4 Objectives of the Study


The objectives of the study can be listed as follows.

To study the various applications available for shopping and other purpose over
mobile phones

To study mannerisms of the buyers while purchasing through the apps.

Perception of buyers and non-buyers through mobile apps.

To know why remaining customers dont buy through apps.

1.5 Scope of the Study


The scope of the study can be listed as follows.

Understand the advantages and disadvantages of purchasing goods through Mobile


phone Apps

This study would help is analyzing the willingness level of individuals to buy
through Smart Phone Apps.

This study would help in identifying the types and Need for mobile phone apps
used by the individuals.

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1.6 Methodology Adopted


1.6.1 Research Design
Research design is simply a plan for a study. This is used as a guide in collecting and analyzing the
data. It can be called a blue print to carry out the study. It is like a plan made by an architect to build
the house, if a research is conducted without a blue print, the result is likely to be different from what
is expected at the start, the blue print includes:

1. Interviews to be conducted, observations to be made, experiments to be conducted, data analysis to


be made.
2. Tools used to collect the data such as questionnaire.
3. The sampling method used

The current research design adopted for study in Descriptive Research

Descriptive research is a type of research, very widely used in marketing research. Survey method
has been used to carry out the study.

1.6.2 Data Collection


Data collection can be categorized as under
1. Primary data: Data collected by the investigator himself/ herself for a specific purpose.

2. Secondary data: Data collected by someone else for some other purpose
The source of Primary data in this study is through Structured Questionnaire and Personal Visits
Secondary data were collected through Web, Magazines & Journals and Newspapers

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A Study on The Usage of Mobile apps for Purchases

1.6.3 Sampling Plan


A sample is a part of the target population which is carefully selected to represent the population.

1.6.3.1 Define the population

Elements: Online purchasing through Mobile apps mainly.

Sampling units: Colleges, Offices and Residential areas.

Extent: Bangalore city.

Time: January 27 to February 5.

1.6.3.2 Identify the sampling frame: Sampling frame consists of only smartphone users and
online purchasers

1.6.3.3 Sampling Unit: Students, Working Executives and Homemakers.

1.6.3.4 Sampling Methods: Non probability sampling has been chosen for the study. The
sampling method adopted was Convenience Method.

1.6.3.5 Sample Size: 100

1.6.4 Data analysis

The Data collected were edited to eliminate errors and omissions. The results of the collected
data were summarized in the form of statistical table. Simple one way tabulation has been
used. Simple percentage analysis has been used to analyze the collected data. After analysis
inferences were drawn

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1.7 Literature Review

According to Human-Computer Interaction, Intelligent Multimodal Interaction Environments


Lecture Notes in Computer Science Volume 4552, 2007, pp 918-925

Overall, the use of the

service via the mobile phone provides a quite good alternative for the PC.
According to Jakob Nielsen a Web usability consultant of Denmark there are five attributes
of usability of mobile applications:

1.

Efficiency: Resources expended in relation to the accuracy and completeness with


which users achieve goals;

2.

Satisfaction: Freedom from discomfort, and positive attitudes towards the use of the
product.

3.

Learnability: The system should be easy to learn so that the user can rapidly start
getting work done with the system;

4.

Memorability: The system should be easy to remember so that the casual user is able to
return to the system after some period of not having used it without having to learn
everything all over again;

5.

Errors: The system should have a low error rate, so that users make few errors during
the use of the system and that if they do make errors they can easily recover from them.
Further, catastrophic errors must not occur.

Christina Warren, a Mashable's Senior Tech Analyst says, over the last few years, in-app
purchases have become an increasingly common way for mobile app developers to enhance their
mobile products and services.

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A Study on The Usage of Mobile apps for Purchases

Pew Internet & American Life Project :


1. Most Internet users and tech experts think cash and credit cards will become things of
the past in the next decade as people turn to their mobile phones to make payments.
2. Nearly two out of three respondents to the survey (65%) told the Pew Internet &
American Life Project that they think most people will have fully adopted the "mobile
wallet" as their day-to-day means of paying by 2020.
3. In a December report from comScore, 38% of smartphone owners had used their
phones to make a purchase of some kind.
4. "By 2020, most people will have embraced and fully adopted the use of smart-device
swiping for purchases they make, nearly eliminating the need for cash or credit cards.
People will come to trust and rely on personal hardware and software for handling
monetary transactions over the Internet and in stores. Cash and credit cards will have
mostly disappeared from many of the transactions that occur in advanced countries."
5. Pew's report said those who think mobile payments will dominate in the coming years
frequently said the boom in smartphone ownership, convenience and security are key
factors that make "these systems an obvious choice to replace established modes of
payment in day-to-day commerce."

Leena Rao, Managing Editor of Techcrunch Says:


1. Smartphone shoppers were also more likely to be younger than their desktop
counterparts with 70.7 per Among the majority of the selected retailers, comScore
reports that the iPhone had a higher penetration compared to Android, while in
most cases Android devices delivered a larger audience due to the platforms
higher overall market penetration of smartphone retail visitors under the age of 45
compared to 61.1 percent of desktop users.

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2.

Engagement among these audiences showed even greater disparity with visitors
under the age of 45 accounting for nearly 3 in every 4 minutes spent on retail
content via smartphones, compared to 61.6 percent of retail minutes on desktop
computers.

3. Among smartphone audiences accessing retail destinations, nearly 1 in every 3


had a household income of $100,000 or greater, with this income segment driving
a comparable 31.2 percent of minutes spent on retail sites and apps.
4. Among both iPhone and Android users, Amazon ranked as the top retailer with a
reach of 43 percent among iPhone users and 55 percent among Android users,
with visitation to the Amazon Appstore largely accounting for the higher reach
among Android users.
5.

Among the majority of the selected retailers, comScore reports that the iPhone
had a higher penetration compared to Android, while in most cases Android
devices delivered a larger audience due to the platforms higher overall market
penetration.

British Bankers Association, March 2014: In the UK 12.4million banking apps have been
downloaded, which are used on average 18.6million times per week.
AppNation, July 2013: Estimates suggest the combined value of paid apps, app-enabled
purchases of goods and services and in app advertising will double to $151 billion in the US
by 2017.
Pew Internet, September 2013: 74% of US adult smartphone owners aged 18+ say that they use
their phone to get directions or other information based on their current location.
Pew Internet, August 2013: Fifty-one percent of US adults, or 61 percent of internet users, bank
online. Thirty-two percent of US adults or 35% of cell phone owners, bank using their mobile
phone apps.

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A Study on The Usage of Mobile apps for Purchases

Joy Liuzzo, president, Wave Collapse says:

1. Over 1000 smartphone users, 93% of people who use apps in stores had bought
something at a physical location in the last week, compared to 84% of non-users of
shopping apps who made a retail purchase. But these same people are also the most
active buyers of products across the Web, smartphones and tablets, while people who
dont use apps in a store generally are focusing most of their buying at physical
locations anyway.
2. Shopping app users are also more likely to purchase on devices, although this group
simply is more likely to make purchases on all digital and physical venues. But the instore app users are the ones who are most likely to move from browsing to actively
buying in the digital realm. They actually like using mobile and tablet devices to shop,
says Liuzzo. They really like what they are doing.
3. Shopping app users actually already know how to shop and are not necessarily looking
for convenience tools. Among those who dont use apps in-store they expressed interest
in comparisons as well, but they were also focused on convenience features like billpaying, store aisle maps and shopping lists.

Nielson says, The usage of mobile phone apps identifies 3 factors that should be considered
when evaluating usability.
1. User: Person who interacts with the product.
2. Goal: Intended outcome.
3. Context of use: Users, tasks, equipment (hardware, software and materials), and
the physical and social environments in which a product is used.

1.8 Limitations of the Study


1. An in depth study might not be done because of time constraints.
2. Biased information was given from respondents.

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Chapter2
Industry Profile
And
Company Profile

A Study on The Usage of Mobile apps for Purchases


2.1 Industry Profile
As this study is related to the digital marketing industry, the industry profile and the overview is
mentioned below.
2.1.1 Digital marketing
Digital marketing is marketing that makes use of electronic devices (computers) such as personal
computers, smartphones, cellphones, tablets and game consoles to engage with stakeholders.
Digital marketing applies technologies or platforms such as websites, e-mail, apps (classic and
mobile) and social networks. Digital Marketing can be through Non-internet channels like TV,
Radio, SMS, etc or through Internet channels like Social Media, E-mails ads, Banner ads,
etc. Social Media Marketing is a component of digital marketing. Many organizations use a
combination of traditional and digital marketing channels; however, digital marketing is
becoming more popular with marketers as it allows them to track their Return on
Investment (ROI) more accurately compared to other traditional marketing channels.
According to the Digital Marketing Institute, Digital Marketing is the use of digital channels to
promote or market products and services to consumers and businesses.

The term 'digital marketing' was first used in the 1990s. In the 2000s and the 2010s, digital
marketing became more sophisticated as an effective way to create a relationship with the
consumer that has depth and relevance.
The rapid evolution of digital media has created new opportunities and avenues for advertising
and marketing. Fuelled by the proliferation of devices to access digital media, this has led to the
exponential growth of digital advertising.
In 2012 and 2013 statistics showed digital marketing remained a growing field.
Digital media growth is estimated at 4.5 trillion online ads served annually with digital media
spend at 48% growth in 2010. An increasing portion of advertising stems from businesses
employing Online Behavioral Advertising (OBA) to tailor advertising for Internet users. Though
an innovative resource, OBA raises concern with regards to consumer privacy and data
protection.

Such

implications

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are

important

considerations

for

responsible
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A Study on The Usage of Mobile apps for Purchases


communications. Digital marketing is often referred to as 'online marketing', 'internet marketing'
or 'web marketing'. The term 'digital marketing' has grown in popularity over time, particularly in
certain countries. In the USA 'online marketing' is still prevalent, in Italy is referred as 'web
marketing' but in the UK and worldwide, 'digital marketing' has become the most common term,
especially after the year 2013.

2.1.2 Latest developments in Digital Marketing


1. Segmentation: more focus has been placed on segmentation within digital marketing, in order
to target specific markets in both business to business and business to consumer sectors.
2. Influencer marketing: Important nodes are identified within related communities, known as
influencers. This is becoming an important concept in digital targeting. It is possible to reach
influencers via paid advertising, such as Facebook Advertising or Google Adwords campaigns,
or through sophisticated sCRM (social customer relationship management) software, such as
SAP C4C, Microsoft Dynamics and Salesforce CRM. Many universities now focus, at Masters
level, on engagement strategies for influencers.
To summarize, Pull digital marketing is characterized by consumers actively seeking marketing
content while Push digital marketing occurs when marketers send messages without that content
being actively sought by the recipients.
2. Online Behavioral Advertising: Online Behavioral Adverts

refers to the practice of

collecting information about a users online activity over time, on a particular device and across
different, unrelated websites, in order to deliver advertisements tailored to that users interests
and preferences.
3. Collaborative Environment: A collaborative environment can be set up between the
organization, the technology service provider, and the digital agencies to optimize effort,
resource sharing, reusability and communications.

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2.1.3 Evolution of Digital Marketing


Its a huge and still rapidly growing market As we were researching Understanding Digital Marketing
in early 2008, global online population statistics (www.internetworldstats.com) put the number of
internet users worldwide at about 1.3 billion. The latest stats, as of 30 June 2010, showed that close to
2 billion people across the globe had regular access to the internet. Thats an additional 700,000 people
or so, gives or takes a few million, in just a couple of years, and means that today more than a quarter
of the global population has access to the internet. Consider the regional breakdown of internet
penetration and you start to see just how crucial it is for your business to connect with its customers
online, wherever in the world you happen to operate. In North America more than 77 per cent of
people are online, in Australasia/ Oceania its 61 per cent and in Europe 77 per cent although within
that subdued European figure of just over half you have Scandinavian states sporting 8095 per cent
penetration, and the UK with more than 82 per cent. Asias internet penetration figures stand at around
21.5 per cent, but that doesnt give the full picture either, because theres a massive swing from a high
81.1 per cent penetration in South Korea to a very low 0.4 per cent penetration in Bangladesh.
Percentages can hide the sheer scale of the potential online market in some of these countries too. Take
China as an example. Only 31.6 per cent of Chinese people have internet access. That doesnt sound
like much, but translate it to actual individual internet users and it represents a massive 420,000,000
people, giving China the worlds largest online population by quite some margin.
In its report Top Predictions for IT Organizations and Users, 2010 and Beyond: A New Balance,
analyst firm Gartner predicts that by 2014 more than 3 billion people or a significant majority of the
worlds adult population will have the ability to transact electronically via mobile or Internet
technologies. Thats a staggering statistic that represents a fundamental shift in the foundation of
global commerce. Widespread internet adoption and the use of electronic media to facilitate commerce
is a global phenomenon, but its one that even local businesses cannot afford to ignore. Whether
people are looking for a plumber to fi t their new bathroom suite or using a smartphone to pinpoint
peer-recommended Italian restaurants near where theyre staying, consumers rely on the internet to
guide their international, national and local purchasing decisions. Ready or not, thats already having
an impact on your business.
As well as shifting usage patterns, were also accessing the internet today using a broader array of
devices than ever before: from digital set-top-boxes to games consoles, the family PC to sophisticated
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mobile phones and the latest dedicated internet-optimized devices, tablets such as Apples much
vaunted iPad, designed to make accessing the web easier, more convenient and more compelling
than ever. In most developing nations personal mobile devices are the primary mode of internet access
today, and according to Gartners analysts, by 2013 browser enabled mobile phones will overtake PCs
as the most common web access device worldwide. They predict there will be 1.78 billion PCs in use
in 2013, compared to 1.82 billion browser-equipped mobiles. Mobiles will continue to outnumber PCs
for internet access thereafter. Mobile commerce is set to rise accordingly, with the widespread
adoption of web-enabled smartphones, affordable mobile data plans over existing 3G and emerging 4G
mobile networks and the maturing of mobile payment gateways. US technology research company
Coda Research Consultancy Ltd predicts a doubling of mobile commerce revenues in the United States
during 2010. As consumers overcome their initial reluctance to paying for things using their mobiles,
theyll spend a projected US $2.4 billion for the year (eMarketer.com, June 2010). Meanwhile
PriceGrabber.coms Smartphone Shopping Behavior Report reveals that in April 2010, 35 per cent of
US web-enabled mobile phone users said they had participated in shopping-related activity (including
browsing and researching prospective purchases) on their mobile phones over the past year. Mobile
internet usage is gaining traction and is starting to fulfil l some of its long-anticipated promise as the
next big thing in digital marketing. If you want to stay ahead of the game, your digital marketing
strategy needs to evolve to encompass mobile-optimized content for easy access on small form-factor
devices. Mobile-specific applications and campaigns also need to form part of your online marketing
mix moving forward, and many of the case studies youll read later in the book include a mobile
element. Embracing and facilitating mobile internet access for your brand is an intelligent step today
and will become an imperative for online success for many businesses over the coming years.

2.1.4 Evolution of Digital Marketing in India


In India the web is now established as a mass market media channel for the wealthy. Email has
become a mass market media channel for office workers and professional classes. Mobile (for SMS) is
a mass market media channel across many demographics, but while mobile use is very high, mobile
devices and the web will not properly converge until late 2010. The main changes in internet access
have happened in the last five years and the internet has become an essential part of office life, and
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plays a key role in many homes. The number of people with access continues to rise, but so too does
the time they spend online. Broadband access is growing fast, but the number of home connections
lags behind comparable markets; however although the number of connections is low, a large number
of people in high-end demographics have access. Significant infrastructure problems remain, creating a
high cost for access compared to average wage rates.
The web is now established in India as a mass market media channel for the wealthy. Email has
become a mass market media channel for office workers and professional classes, but the use is more
fractured than in Europe. The main changes in internet access both at home and at work have happened
in the last five years and have seen the internet has become an essential part of office life. The number
of people with access continues to rise, but it is still only 5% of the country. The time they spend
online is rising too and the frequency of use is rising: people who have access use it a lot and continue
to use it more and more. In this report we have collated together a market snapshot of how internet
access and use in the country is developing.
Internet access growth started accelerating in 2002 and both the web and email have now
mainstreamed as both a consumer and business tool. Not surprisingly internet use is skewed massively
towards specific up-market demographics and professional classes that have access as part of their
working lives. The twenty something professionals are graduating college with internet access part of
their personal landscape so a clear cohort effect is in play as this group ages they replace the older
generation where internet use is patchier, and the digital behavior on the whole, less engrained. Email
has become an important business tool for both domestic and international firms, and the ability to
overcome the geographic challenges of such a large country have made it a quick replacement for fax
services. However the role of the web goes far beyond business. For a new generation of consumers
its become a key lifestyle and entertainment channel, with much strong nationally created
entertainment, sport and news sites traceable back to the mid-nineties. The strong home-grown content
industry India has had, complemented by a strong IT sectors in Bangalore, Mumbai and Delhi have
fuelled internet development. In terms of international access, there is an additional pattern of strong
use of UK and US websites as well as international sports websites.
The massive Indian market is changing fast. Internet access is mainstreaming among professionals and
the use of mobile is intensifying. The pace of change continues to be rapid with digital channels
constantly growing in volume and strength. More people spend more time online in India every year,
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and the digital tools and sites they use play an ever-growing role in their lives. Smart marketers keep
on top of the scale of change and ensure their marketing strategies and touch points mirror where the
consumer is spending their time. These notes give a sense of the scale of change weve seen so far and
imply the scale of what is coming.

2.1.5 Growth of Digital Marketing


Staying healthy during lean economic times is smart, but growth is in our future. Our focus on
moving Top Rank, Online Marketing even further forward as a leading digital marketing agency
also offers insights of use for companies. Here are 7 considerations:
2.1.5.1 Smarter Creativity Evolving technology and the proliferation of resources about how
to succeed on the social web has really leveled the playing field for smart marketers. Or at least
the perception of it. With so many companies simply parroting the success of others that pioneer
and pave the way, its important to distinguish your brand.
Deep customer insight, brand stories that position a unique selling proposition and an increase in
visual marketing tactics are not enough. Data informed creative execution is essential, from
clever content and visual marketing to the packaging of information used internally and with
client or constituent communications.
Smarter creativity means using the optimized approach to digital marketing: A continuous
process of hypothesis, testing and refinement resulting in more meaningful and productive
creative execution.
2.1.5.2 Innovation & Evolution of Services The best investment in marketing a company can
make is in its products or services.
The most amazing social media efforts, publicity or SEO are simply not as effective with a
mediocre product offering. An exceptional product/service plus intelligent, clever creative is the
baseline standard for effective digital marketing and PR in 2013 and onward.

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In the agency world it seems like most fall to the extremes. Either they live on the edge of
innovation, so much so that they are offering services with absolutely no idea if they will be
effective. (But they are trendy). Or they seem to be stuck with a legacy mindset, relying only on
what has worked for so many years and being reluctant to dig into new technology and trends.
Somewhere in the middle is the right fit for delivering services that will produce results and at
the same time, keep innovation at the forefront. As they say, if youre not growing, youre dying
and we have a LOT of growing to do.
2.1.5.3 Continuous Optimization of Knowledge & Processes As alluded to above, the
Optimize approach to digital marketing and PR calls for continuous refinement. That means
processes that support continuous innovation and evolution of the services mix based on
feedback mechanisms, KPIs and performance.
An audit of current processes and team skills will reveal opportunities to improve through
training and support of ideation, implementation and evaluation of those innovations. Continuous
optimization leads to a superior experience for customers as they discover your brand, consume
the useful content youre publishing and to take action.
2.1.5.4 Master Data, Analytics & Platforms - The importance of data (not just big data) and
analytics to inform business and marketing decisions is paramount. As we talk to other online
marketers, SEOs and those who call themselves social media experts and content marketing
experts, we can be amazed at how much pure speculation is put forth as tested and proven best
practices.
If you dont know how or see it as difficult, then maybe youre not willing to do what it takes to
succeed. Because your competition IS making those investments in resources and expertise.
Whether its as simple as Google Analytics, Radian6 or insights from platforms like Markets and
Hub Spot, marketing software platforms and the data they report on are the most fundamental
areas for investment and mastery to succeed.

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2.1.5.5 Invest in Software & Systems to Scale Speaking of software, its impossible to scale
digital marketing and PR efforts without leveraging a SaaS marketing software platform. There
are specific types of course, from marketing automation to social media marketing management
services. Picking the right platform will require some investigation into understanding your own
needs, the features offered by the platform and the support (internal or external) youll need to
implement, operate and scale.
Youll start to see more marketing software reviews here on Online Marketing Blog in the future
to help companies make some of those decisions.
2.1.5.6 Superior Talent Acquisition This is one of the biggest challenges companies and
agencies face as they try to compete in a progressive and fast changing digital world. Finding the
right talent is extremely difficult in certain markets. However, companies must dedicate
themselves to figuring out what key skills are needed to build more effective digital teams. My
first investment would be in content production, then social strategy/community management
followed by SEO, analytics and online PR. Figure out where these resources exist internally and
where they dont, recruit.
When it comes to digital marketing and PR talent, a few key questions companies and agencies
need to answer include:

What skills are transferrable form other industries?

What training can be provided to fill in the gaps?

How can you really tell when self-anointed marketing experts and brandividuals can
actually do the things they profess and create business value?

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2.1.5.7 Accelerate Thought Leadership Leadership internally is as important as external
thought leadership. Todays digital workforce doesnt want to be managed. They want to be
inspired and be a part of something great. The two tie in together of course and helping internal
subject matter experts (especially those who are client facing or public) develop their own
thought leadership visibility can accelerate the footprint of the overall brand.
There are many approaches to industry thought leadership and credibility, but it takes superior
creative, data, and innovative insight to create a competitive advantage. The good news is, all the
tools needed are more readily available now than ever from data collection, to analysis and
visualization to means of distribution and promotion.
Thank you to our clients and community for being so supportive of Top Rank and this Online
Marketing Blog over the years. Weve been fortunate to work with some amazing companies
from Marketo and Radian6 when they were start-ups to large companies like HP, McKesson and
BT.
Weve contributed a lot to the industry through sharing of knowledge and drawing attention to
others doing the same. By continuing that approach and the focus areas above, I think the agency
you see in a year will be significantly different in the best way possible. Theres no reason the
same wouldnt be true for companies investing more significantly in digital marketing and PR
wont also experience the same.

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2.1.6 Growth of Digital Marketing in India


If you take a look you will find that even the number of SEO companies is more than the double
of what it was a few years back. The data depicts that each internet user makes an average of 30
searches per month, so you can easily make out how great is the potential to reach the new
targeted customer at present. This is why almost all the businesses are trying to focus more on
internet marketing and are shifting their budget from the traditional marketing. They have
realized now that conventional marketing alone cannot help them to be the industry player
anymore.
Looking back at the market scenario of a few years back, only some of us were aware with or
were practicing online shopping and that e-commerce companies were not thriving the way they
are today. The current trend among the Indians to shop online is contributing a lot to the growth
of internet marketing in India. Whether it is groceries or technology stuff everything is being
sold and bought on the internet, making shopping easy and convenient for the consumers.
Indias population is three times that of USA and is the second largest country in the world. Now
when internet penetration in India is only 8.5% it ranks third in the list of countries with highest
number of internet users. So one can easily make out what is the actual potential of India and
how far it can go in terms of internet marketing. Moreover, the government of India is trying its
best to help make India reach the potential it has in terms of internet usage and marketing. The
government of India has launched so many projects like NOFN, Netra and so on to uplift the
internet marketing situation in India.
It was 1983 when internet marketing started for the first time with the launch of the first
commercial internet email product by CompuServe and since then internet marketing has never
looked back.
India covered the same internet marketing journey that other parts the world did the only
difference was everything came a little late in India. Lets see how India covered its internet
marketing journey starting from e-mail marketing to open graph marketing. However before that
lets have a look to a few stats related with India.

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2.1.7 Future of Digital marketing


Everybody wants to know what the future holds. Only a few of us go to great lengths - like fortunetellers and oracles - for any hint at what's to come. We're not here to make judgments or snide
comments, but no crystal ball can predict the future of the always-evolving digital realm. In order to
understand what the digital marketing world has in mind for the coming years, we must look at facts,
data and trends. With our latest digital marketing infographic, we examined the writing on the wall and
took a shot at foretelling the future of digital marketing.
The truth is, nobody knows what the landscape of digital marketing will look like this time next year.
We can make speculations and educated guesses based on the information we have, but nothing is
certain. At the end of the day, trying to predict which tactics and strategies will put marketers ahead of
the curve (and their competition) is what sets the great ones apart from the rest. Maybe the future we
foretell with this infographic will be accurate or perhaps it'll be way off base; either way, it's the effort
and experience of trying that matters.
Content marketing will rule budgets, priorities and customer attention. If you've read anything at
all about digital marketing in the last three years, then this shouldn't be a surprise. Content
marketing is so hot right now. On a data-backed front, 71% of marketers report that they're
getting an increased content marketing budget for 2015. These kind of predictive stats are
exactly what you're looking for if you want to define your digital marketing strategy based on
what's likely to happen in the future. And it doesn't necessarily mean you have to load up on
content marketing in 2015.

Companies can and should use the same statistics to make different conclusions. For example, a
content marketing company would use the aforementioned statistic to prepare for an uptick in
sales conversations and meetings. On the flip side, a company whose competitors are already
knocking it out of the park with content marketing might pivot toward a channel that's untapped
in their industry. It's that old adage we're always talking about: it depends. The combination of
tactics and strategies that works for one business may not be the right mix for other brands.
Personalization will earn you some serious cred amongst your customers. As a marketer, the one
thing you should always be doing is listening to your customers. You won't be able to please
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every customer and you shouldn't let a few disgruntled people dictate your strategy, but you
should always listen. When reports say that 67% of consumers state that custom content helps
them make better purchase decisions, you should take notice. In digital marketing, how you use
stats like these matter more than just being able to spout them off when somebody asks.
User experience on mobile devices will improve drastically. With the stats suggesting that ONE
BILLION people will use their smartphone as their only form of Internet access in 2015, it's time
to start thinking about mobile first and everything else second. This is a big shift, even for those
on the cutting edge of digital marketing, so the sooner you can wrap your head around a mobilefirst approach, the quicker you'll jump ahead of the competition.

Professionals everywhere will find and channel their inner marketer. A company's marketing
material is a direct reflection of the company itself. If a brand's marketing is bland and too
focused on self-promotion, customers will quickly realize they're dealing with a selfish, bland
company. These days, nobody wants to purchase from brands that are all about themselves. In
fact, customer-centric companies gained 43% in performance ratings compared to a 40%
decrease for companies who've neglected customer experience. That's a big deal. If your business
hasn't had discussions on customer experience, make it a priority early in 2015.

Up-and-coming trend: its all about the digital best dressed list. 2015, the year of Google Glass
and Apple's Watch. If we've learned one thing about the rise of smartphones and tablets, it's that
technology has the power to drastically change the digital marketing landscape in a very short
period of time. When it comes to technology, pay attention, adopt and experiment early, and
embrace change. It's the only way forward in our increasingly technical world.

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2.1.8 Future of Digital marketing in India


In the 90s, the concept of digital and Internet marketing seemed like an adolescent idea that
would soon fade away. Traditional marketers were extremely skeptical about it, and business
investors and marketing consultants throughout the world proclaimed that it was merely a Silicon
Valley idea that would go bust from boom.
In India, things looked even more pessimistic. A country of 1 billion people who had grown used
to ads on painted movie posters, cable television and newspaper print supplements about their
favorite products India seemed like a country that would be least convinced to go for things
like Internet ads, social marketing and digital innovation. Adding to the cynicism was the fact
that in the 90s, most Indians didnt have an easy access to the net, and there werent as many
cyber cafes as there are today.
Today, things have markedly changed. India has rapidly become one of the biggest social
marketing audiences in the world. From MySpace to Stumble Upon and from Technorati to Slide
Share Indians are everywhere and notice that I didnt mention Facebook or Twitter. Indian
marketing professionals today have thousands of digital ways to interact with their audience. An
audience that consists of digitally proficient students whore accessing their profiles in buses,
working professionals who check their mails on-the-way to office, and even housewives who
know how to access their online profiles.
The demographic advantages of Indian digital marketing cannot be overstated. Here we have a
potential market which today has access through phones, cyber cafes and personal computers to
literally millions of email/mobile campaigns. Indian audiences have the additional difficulty of
linguistic differences something that digital marketing can choose to stay away from. The
future of digital marketing in India seems bright and beautiful.

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2.2 Company Profile
2.2.1 Promoters
ODigMa is the leading and fastest growing online marketing company in India for all internet
marketing needs from SEO to SMM. Started in May 2010 by Advit Sahdev, ODigMa has always
relied on providing a data driven, measurable and performance based approach. A team that is
driven by creativity and passion has launched several successful and national level and
international level campaigns to create some of the most innovative case studies in India and
abroad. Now ODigMa is acquired by Infibeam.

For its very first client, ODigMa created records of sorts on Facebook marketing in India and the
client got featured in one of the most popular articles of the year 2010 that showed the bigger
brands on how social media can be leveraged for branding and promotions.
ODigMa has worked with several big brands like Myntra, MakeMyTrip, Infibeam, Airtel, MTS,
Marks & Spencer, Aditya Birla Group, HiDesign, Philips and a long list over 400 brands in the
last 4 years.

Launched- May 2010


First Major E-Commerce project-MYNTRA : Aug-2010
First office and 3 employees- Dec 2010
Second Office and 15 employees Apr 2011
Crossed 50 clients and started operations in Delhi Sep 2011
Biggest E-Commerce company- Airtel- Aug 2012
Awarded young Turks award- Jan 2013
Started operations in Mumbai- Apr 2013
Awarded most talented social media operations of India- Feb 2014

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2.2.2 Vision & Mission

Vision:

Our vision is to be a globally creative dominion digital media marketer, to make our client be
striking on both the digital and social media platforms.

Mission:

To build creative strategies and advertise about the clients products & services on the digital
platform as believe in performance based online marketing.

2.2.3 Services
The key services that are offered at ODigMa Consultancy include:

Facebook Brand Building Suite.


Twitter Strategy Planning and Implementation.
Strategy on Social Media Applications
SEO and Google Ad words PPC.
Website Development

2.2.4Area of Operations

Area of operation is Bangalore.

2.2.5 Infrastructure
Company uses legal soft wares like Adobe Photoshop for its designing requirements and MOZ
tools for Search Engine Optimization.

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2.2.6 Competitors of ODigMa
In the enormous digital world ODigMa is thriving to be amongst the leading players in India and
then worldwide but in this digitized world ODigMa has a great competition which provides the
similar type of services the leading companies are listed below:
Web Chutney.
Blazar.
Phonethics.
WatConsult.
BC Web Wise.

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2.2.7 SWOT Analysis

Strengths:
Employees working since at least 5 years having good domain knowledge.
Experienced workers.
Creative Designers.

Weaknesses:
Frequent change in staff personnel.

Opportunities:
Using old clients
Growth in the digital marketing industry.

Threats:
Tough competition
Changes in the taste & preferences of clients.
New entrants.

2.2.7 Future growth


ODigMa has plans to Upscale the company depending on the future digital marketing trends.

2.2.8 Financial Statement


The companys financial statement could not be included as it was confidential.

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3.1 Mobile apps
Mobile apps are computer program designed to run on smartphones, tablet computers and
other mobile devices.
Apps are usually available through application distribution platforms, which began appearing in
2008 and are typically operated by the owner of the mobile operating system, such as the
Apple App Store, Google Play, Windows Phone Store, and BlackBerry App World. Some apps
are free, while others must be bought. Usually, they are downloaded from the platform to a target
device, such as an iPhone, BlackBerry, Android phone or Windows Phone, but sometimes they
can be downloaded to laptops or desktop computers. For apps with a price, generally a
percentage, 20-30%, goes to the distribution provider (such as iTunes), and the rest goes to the
producer of the app. The same app can therefore cost the average Smartphone user a different
price depending on whether they use iPhone, Android, or BlackBerry 10 devices.
The term "app" is a shortening of the term "application software". It has become very popular,
and in 2010 was listed as "Word of the Year" by the American Dialect Society In 2009,
technology columnist David Pogue said that newer smartphones could be nicknamed "app
phones" to distinguish them from earlier less-sophisticated smartphones.
Mobile apps were originally offered for general productivity and information retrieval, including
email, calendar, contacts, stock market and weather information. However, public demand and
the availability of developer tools drove rapid expansion into other categories, such as
word, social

media,

picture

sharing, mobile

games,

factory

automation, GPS mapping

and location-based services, banking, networking and file transfer, education, video streaming,
order tracking, ticket purchases and recently mobile medical apps. The explosion in number and
variety of apps made discovery a challenge, which in turn led to the creation of a wide range of
review, recommendation, and curation sources, including blogs, magazines, and dedicated online
app-discovery services. Recently, government regulatory agencies have launched initiatives to
regulate and curate apps, particularly mobile medical apps.
The popularity of mobile apps has continued to rise, as their usage has become increasingly
prevalent across mobile phone users. A May 2012 comScore study reported that during the
previous quarter, more mobile subscribers used apps than browsed the web on their devices:

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51.1% vs. 49.8% respectively. Researchers found that usage of mobile apps strongly correlates
with user context and depends on user's location and time of the day.
According to market research firm Gartner, 102 billion apps will be downloaded in 2013 (91% of
them will be free) but they will still generate US$26 billion, up 44.4% on 2012's
US$18 billion. An analyst report estimates that the app economy creates revenues of more
than 10 billion per year within the European Union, while over 529,000 jobs have been created
in 28 EU states due to the growth of the app market.

3.2 Development of Mobile apps


Developing apps for mobile devices requires considering the constraints and features of these
devices. Mobile devices run on battery and have less powerful processors than personal
computers and also have more features such as location detection and cameras. Developers also
have to consider a wide array of screen sizes, hardware specifications and configurations because
of intense competition in mobile software and changes within each of the platforms.
Mobile

application

development requires

use

of

specialized integrated

development

environments. Mobile apps are first tested within the development environment using
emulators and later subjected to field testing. Emulators provide an inexpensive way to test
applications on mobile phones to which developers may not have physical access.
As part of the development process, Mobile User Interface (UI) Design is also an essential in the
creation of mobile apps. Mobile UI considers constraints & contexts, screen, input and mobility
as outlines for design. The user is often the focus of interaction with their device, and the
interface entails components of both hardware and software. User input allows for the users to
manipulate a system, and device's output allows the system to indicate the effects of the users'
manipulation. Mobile UI design constraints include limited attention and form factors, such as a
mobile device's screen size for a user's hand(s). Mobile UI contexts signal cues from user
activity, such as location and scheduling that can be shown from user interactions within a
mobile application. Overall, mobile UI design's goal is primarily for an understandable, userfriendly interface. The UI of mobile apps should: consider users' limited attention, minimize

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keystrokes, and be task-oriented with a minimum set of functions. This functionality is supported
by Mobile enterprise application platforms or integrated development environments (IDEs).
Mobile UIs, or front-ends, rely on mobile back-ends to support access to enterprise systems. The
mobile back-end facilitates data routing, security, authentication, authorization, working off-line,
and service orchestration. This functionality is supported by a mix of middleware components
including mobile app servers, Mobile Backend as a service(MBaaS), and SOA infrastructure.

3.3 Distribution of Mobile Apps


3.3.1 Amazon Appstore
Amazon Appstore is an alternate application store for the Android operating system. It was
opened in March 2011, with 3800 applications. The Amazon Appstore's Android Apps can also
run on BlackBerry 10 devices.

3.3.2 App Store


Apple's App Store for iOS was the first app distribution service, which set the standard for app
distribution services and continues to do so, opened on July 10, 2008, and as of January 2011,
reported over 10 billion downloads. As of June 6, 2011, there were 425,000 apps available,
which had been downloaded by 200 million iOS users. During Apple's 2012 Worldwide
Developers Conference, Apple CEO Tim Cook announced that the App Store has 650,000
available apps to download as well as "an astounding 30 billion apps" downloaded from the app
store until that date. From an alternative perspective, figures seen in July 2013 by the BBC from
tracking service Adeven indicate over two-thirds of apps in the store are "zombies", barely ever
installed by consumers.

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3.3.3 BlackBerry World


BlackBerry World is the application store for BlackBerry 10 and BlackBerry OS devices. It
opened in April 2009 as BlackBerry App World, and as of February 2011, was claiming the
largest revenue per app: $9,166.67 compared to $6,480.00 at the Apple App Store and $1,200 in
the Android market. In July 2011, it was reporting 3 million downloads per day and 1 billion
downloads. In May 2013, BlackBerry World reached over 120,000 apps. BlackBerry 10 users
can also run Android apps.

3.3.4 Google Play


Google Play (formerly known as the Android Market) is an international online software store
developed by Google for Android devices. It opened in October 2008. In August 2014, there
were approximately 1.3+ million apps available for Android, and the estimated number of
applications downloaded from Google Play was 40 billion.

3.3.5 Nokia Store


An app store for Nokia phones was launched internationally in May 2009. As of April 2011 there
were 50,000 apps, and as of August 2011, Nokia was reporting 9 million downloads per day. In
February 2011, Nokia reported that it would start using Windows Phone as its primary operating
system. In May 2011, Nokia announced plans to rebrand its Ovi product line under the Nokia
brand and Ovi Store was renamed Nokia Store in October 2011. Nokia Store remains as the
distribution platform for its previous lines of mobile operating systems but will no longer allow
developers to publish new apps or app updates for its legacy Symbian and MeeGo operating
systems from January 2014.

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3.3.6 Windows Phone Store


Windows Phone Store was introduced by Microsoft for its Windows Phone platform, which was
launched in October 2010. As of October 2012, it has over 120,000 apps available.

3.3.7 Windows Store


Windows Store was introduced by Microsoft for its Windows 8 and Windows RT platforms.
While it can also carry listings for traditional desktop programs certified for compatibility with
Windows 8, it is primarily used to distribute "Windows Store apps"which are primarily built
for use on tablets and other touch-based devices (but can still be used with a
keyboard and mouse, and on desktop computers and laptops).

3.3.8 Samsung Apps Store


An app store for Samsung mobile phones was founded in September 2009. As of October 2011,
Samsung Apps reached 10 million downloads. Currently the store is available in 125 countries
and it offers apps for Windows Mobile, Android and Bada platforms.

3.3.9 Mobile application management


Mobile application management (MAM) describes software and services responsible for
provisioning and controlling access to internally developed and commercially available mobile
apps used in business settings, which has become necessary with the onset of Bring your own
device (BYOD) phenomenon. When an employee brings a personal device into an enterprise
setting, mobile application management enables the corporate IT staff to transfer required
applications, control access to business data, and remove locally cached business data from the
device if it is lost, or when its owner no longer works with the company.

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3.4 Use of Mobile Apps: App Wrapping vs. Native App Management
Especially mobile apps in the BYOD context are a significant security risk for businesses,
because they transfer unprotected sensitive data to the Internet without knowledge and consent of
the users. Reports of stolen corporate data show how quickly corporate and personal data can fall
into the wrong hands. Data theft is not just the loss of confidential information, but makes
companies vulnerable to attack and blackmail.
Professional Mobile Application Management helps companies protect their data. One option for
securing corporate data is app wrapping. But there also are some disadvantages like copyright
infringement or the loss of warranty rights. Functionality, productivity and user experience are
particularly limited under app wrapping. The policies of a wrapped app can't change. So if
required, it must be created from scratch again, adding additional cost.
Alternatively, it is possible to offer native apps securely through Enterprise mobility
management without limiting the native user experience. This enables more flexible IT
management as apps can be easily implemented and policies adjusted at any time.

3.5 Mobile Commerce


The phrase mobile commerce was originally coined in 1997 by Kevin Duffey at the launch of the
Global Mobile Commerce Forum, to mean "the delivery of electronic commerce capabilities
directly into the consumers hand, anywhere, via wireless technology. Many choose to think of
Mobile Commerce as meaning "a retail outlet in your customers pocket."
Mobile commerce is worth US$230 billion, with Asia representing almost half of the market, and
has been forecast to reach US$700 billion in 2017. According to BI Intelligence in January 2013,
29% of mobile users have now made a purchase with their phones. Walmart estimated that 40%
of all visits to their internet shopping site in December 2012 was from a mobile device. Bank of
America predicts $67.1 billion in purchases will be made from mobile devices by European and
U.S. shoppers in 2015. Mobile retailers in UK alone are expected to increase revenues up to 31%
in FY 201314.

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3.5.1 History of Mobile Commerce


The Global Mobile Commerce Forum, which came to include over 100 organizations, had its full
minute launch in London on 10 November 1997. Kevin Duffey was elected as the Executive
Chairman at the first meeting in November 1997. The meeting was opened by Dr Mike Short,
former chairman of the GSM Association, with the very first forecasts for mobile
commerce from Kevin Duffey (Group Telecoms Director of Logica) and Tom Alexander (later
CEO of Virgin Mobile and then of Orange). Over 100 companies joined the Forum within a year,
many forming mobile commerce teams of their own, e.g. MasterCard and Motorola. Of these one
hundred companies, the first two were Logica and Cellnet (which later became O2). Member
organizations such as Nokia, Apple, Alcatel, and Vodafone began a series of trials and
collaborations, many of which are summarized here.
Mobile commerce services were first delivered in 1997, when the first two mobile-phone
enabled Coca Cola vending machines were installed in the Helsinki area in Finland. The
machines accepted payment via SMS text messages. The first mobile phone-based banking
service was launched in 1997 by Merita Bank of Finland, also using SMS.
The m-Commerce(tm) server developed in late 1997 by Kevin Duffey and Andrew Tobin at
Logica won the 1998 Financial Times award for "most innovative mobile product," in a solution
implemented with De La Rue, Motorola and Logica. The Financial Times commended the
solution for "turning mobile commerce into a reality." The trademark for m-Commerce was filed
on 7 April 2008 (http://www.trademarkia.co.uk/uk/mcommerce-56494.htm).
In 1998, the first sales of digital content as downloads to mobile phones were made possible
when the first commercial downloadable ringtones were launched in Finland by Radiolinja (now
part of Elisa Oyj).
Two major national commercial platforms for mobile commerce were launched in 1999: Smart
Money (http://smart.com.ph/money/) in the Philippines, and NTT DoCoMo's I-Mode Internet
service in Japan. I-Mode offered a revolutionary revenue-sharing plan where NTT DoCoMo kept
9 percent of the fee users paid for content, and returned 91 percent to the content owner.

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Mobile-commerce-related services spread rapidly in early 2000. Norway launched mobile
parking payments. Austria offered train ticketing via mobile device. Japan offered mobile
purchases of airline tickets.
In April 2002, building on the work of the Global Mobile Commerce Forum (GMCF), the
European Telecommunications Standards Institute (ETSI) appointed Joachim Hoffmann of
Motorola to develop official standards for mobile commerce. In appointing Mr Hoffman, ETSI
quoted industry analysts as predicting "that m-commerce is poised for such an exponential
growth over the next few years that could reach US$200 billion by 2004".
The first book to cover mobile commerce was Tomi Ahonen's M-profits in 2002.
The first university short course to discuss mobile commerce was held at the University of
Oxford in 2003, with Tomi Ahonen and Steve Jones lecturing. As of 2008, UCL Computer
Science and Peter J. Bentley demonstrated the potential for medical applications on mobile
devices.
PDAs and cellular phones have become so popular that many businesses are beginning to use
mobile commerce as a more efficient way to communicate with their customers.
In order to exploit the potential mobile commerce market, mobile phone manufacturers such as
Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T Wireless
and Sprint to develop WAP-enabled smartphones. Smartphones offer fax, e-mail, and phone
capabilities.
"Profitability for device vendors and carriers hinges on high-end mobile devices and the
accompanying killer applications," said Burchett. Perennial early adopters, such as the youth
market, which are the least price sensitive, as well as more open to premium mobile content and
applications, must also be a key target for device vendors.
Since the launch of the iPhone, mobile commerce has moved away from SMS systems and into
actual applications. SMS has significant security vulnerabilities and congestion problems, even
though it is widely available and accessible. In addition, improvements in the capabilities of
modern mobile devices make it prudent to place more of the resource burden on the mobile
device.

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More recently, brick and mortar business owners, and big-box retailers in particular, have made
an effort to take advantage of mobile commerce by utilizing a number of mobile capabilities
such as location-based services, barcode scanning, and push notifications to improve the
customer experience of shopping in physical stores. By creating what is referred to as a 'bricks &
clicks' environment, physical retailers can allow customers to access the common benefits of
shopping online (such as product reviews, information, and coupons) while still shopping in the
physical store. This is seen as a bridge between the gap created by e-commerce and in-store
shopping, and is being utilized by physical retailers as a way to compete with the lower prices
typically seen through online retailers. By mid-summer 2013, "Omni channel" retailers (those
with significant e-commerce and in-store sales) were seeing between 25% and 30% of traffic to
their online properties originating from mobile devices. Some other pure play/online-only retail
sites (especially those in the travel category) as well as flash sales sites and deal sites were seeing
between 40% and 50% of traffic (and sometimes significantly more) originate from mobile
devices.
The Google Wallet Mobile App launched in September 2011 and the m-Commerce joint venture
formed in June 2011 between Vodafone, O2, Orange and T-Mobile are recent developments of
note. Reflecting the importance of m-Commerce, in April 2012 the Competition Commissioner
of the European Commission ordered an in-depth investigation of the m-Commerce joint
venture between Vodafone, O2, Orange and T-Mobile. A recent survey states that 2012, 41% of
smartphone customers have purchased retail products with their mobile devices.

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3.6 Products and Services available


3.6.1 Mobile Money Transfer
In Kenya money transfer is mainly done through the use of mobile phones. This was an initiative
of a multimillion shillings company in Kenya. Mobile money transfer services in Kenya are now
provided ag. (M-PESA and ZAP). the oldest has and is now generally used to refer to mobile
money transfer services even by other companies other than.

3.6.2 Mobile ATM


With the introduction of mobile money services for the unbanked, operators are now looking for
efficient ways to roll out and manage distribution networks that can support cash-in and cashout. Unlike traditional ATM, Mobile ATM have been specially engineered to connect to mobile
money platforms and provide bank grade ATM quality. In Hungary, Vodafone allows cash or
bank card payments of monthly phone bills. The Hungarian market is one where direct debits are
not standard practice, so the facility eases the burden of queuing for the postpaid half of
Vodafones subscriber base in Hungary.

3.6.3 Mobile ticketing


Tickets can be sent to mobile phones using a variety of technologies. Users are then able to use
their tickets immediately, by presenting their mobile phone at the ticket check. Most number of
users are now moving towards this technology. Best example would be IRCTC where ticket
comes as SMS to users.

3.6.4 Mobile vouchers, coupons and loyalty cards


Mobile ticketing technology can also be used for the distribution of vouchers, coupons, and
loyalty cards. A customer presenting a mobile phone with one of these tokens at the point of
sale receives the same benefits as if they had the traditional token. Stores may send coupons to
customers using location-based services to determine when the customer is nearby.

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3.6.5 Content purchase and delivery


Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones,
wallpapers, and games for mobile phones. The convergence of mobile phones, portable audio
players, and video players into a single device is increasing the purchase and delivery of fulllength music tracks and video. The download speeds available with 4Gnetworks make it possible
to buy a movie on a mobile device in a couple of seconds.

3.6.6 Location-based services


The location of the mobile phone user is an important piece of information used during mobile
commerce or m-commerce transactions. Knowing the location of the user allows for locationbased services such as:

Local discount offers

Local weather

Tracking and monitoring of people

3.6.7 Information services


A wide variety of information services can be delivered to mobile phone users in much the same
way as it is delivered to PCs. These services include:

News

Stock quotes

Sports scores

Financial records

Traffic reporting

Customized traffic information, based on a user's actual travel patterns, can be sent to a mobile
device. This customized data is more useful than a generic traffic-report broadcast, but was
impractical before the invention of modern mobile devices due to the bandwidth requirements.

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3.6.8 Mobile Banking


Banks and other financial institutions use mobile commerce to allow their customers to access
account information and make transactions, such as purchasing stocks, remitting money. This
service is often referred to as Mobile Banking, or M-Banking.

3.6.9 Mobile brokerage


Stock market services offered via mobile devices have also become more popular and are known
as Mobile Brokerage. They allow the subscriber to react to market developments in a timely
fashion and irrespective of their physical location.

3.6.10 Auctions
Over the past three years mobile reverse auction solutions have grown in popularity. Unlike
traditional auctions, the reverse auction (or low-bid auction) bills the consumer's phone each
time they place a bid. Many mobile SMS commerce solutions rely on a one-time purchase or
one-time subscription; however, reverse auctions offer a high return for the mobile vendor as
they require the consumer to make multiple transactions over a long period of time.

3.6.11 Mobile browsing


Using a mobile browsera World Wide Web browser on a mobile devicecustomers can shop
online without having to be at their personal computer.

3.6.12 Mobile purchase


Catalog merchants can accept orders from customers electronically, via the customer's mobile
device. In some cases, the merchant may even deliver the catalog electronically, rather than
mailing a paper catalog to the customer. Some merchants provide mobile websites that are
customized for the smaller screen and limited user interface of a mobile device.
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3.6.13 In-application mobile phone payments


Payments can be made directly inside of an application running on a popular smartphone
operating system, such as Google Android. Analyst firm Gartner expects in-application
purchases to drive 41 percent of app store (also referred to as mobile software distribution
platforms) revenue in 2016. In-app purchases can be used to buy virtual goods, new and other
mobile content and is ultimately billed by mobile carriers rather than the app stores
themselves. Ericssons IPX mobile commerce system is used by 120 mobile carriers to offer
payment options such as try-before-you-buy, rentals and subscriptions.

3.6.14 Mobile marketing and advertising


In the context of mobile commerce, mobile marketing refers to marketing sent to mobile
devices. Companies have reported that they see better response from mobile marketing
campaigns than from traditional campaigns. The primary reason for this is the instant nature of
customer decision-making that mobile apps and websites enable. The consumer can receive a
marketing message or discount coupon and, within a few seconds, make a decision to buy and go
on to complete the sale - without disrupting their current real-world activity.
For example, a busy mom tending to her household chores with a baby in her arm could receive
a marketing message on her mobile about baby products from a local store. She can and within a
few clicks, place an order for her supplies without having to plan ahead for it. No more need to
reach for her purse and hunt for credit cards, no need to log into her laptop and try to recall the
web address of the store she visited last week, and surely no need to find a babysitter to cover for
her while she runs to the local store.
Research demonstrates that consumers of mobile and wireline markets represent two distinct
groups who are driven by different values and behaviors, and who exhibit dissimilar
psychographic and demographic profiles. Research shows that how individuals relate to four
situational dimensions- place, time, social context and control determine to what extent they are
ubiquitous or situated as consumers. These factors are important in triggering m-commerce from
e-commerce. As a result, successful mobile commerce requires the development of marketing
campaigns targeted to these particular dimensions and according user segments.
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3.7 Advantages of Mobile apps

Can be designed for a wide range of uses - games, business productivity applications,
media applications, time management, and others. Some of the more complex and
graphic intensive functionality cannot be delivered over Web Apps.

Can function without Internet connectivity - once installed the application resides on the
device and does not require a signal to work. Excellent when youre in the subway
and need to slash some fruits.

Background operation application can run in the background and send push
notifications to the user. For example a task on the calendar can notify the user of a
pending due date and so on.

Can be sold through the iTunes store and have a subscription based service. And then you
get to pay Apple on a recurring basis! Glee!

Can directly interact with mobile device peripherals such as the camera, GPS, and
touchscreen.

Can perform complex operations on data without the need for server side code. In other
words, you dont have to buy rack space for your monster servers because Mike can now
resize his profile picture on the device itself.

3.8 Disadvantages of Mobile apps

Development time and cost is much higher than optimizing a website and creating a
WebApp.

To make application available to the whole market you will also need to develop Apps
for the Android and Blackberry platforms. Code cannot be reused across the platforms.

The application is harder to test for simple users a deployment package needs to be
installed on the device, devices have to be authorized for testing.

App needs to go through Apple App review process.

You need to share 30% of your total sales revenue with Apple.

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Chapter-4
Data Analysis and
Interpretation

A Study on The Usage of Mobile apps for Purchases


Table 4.1: Age.

Age
<20
21-30
31-40
41-50
>50
Total

No of respondents
11
52
27
6
4
100

Percentage
11
52
27
6
4
100

Chart 4.1: Age


6% 4%
11%

<20
21-30

27%

52
52%

31-40
41-50
>50

Data analysis and Interpretation:


11% of the people are below the age of 20, 52% of the people are between the age of 21-30, 27%
of the people are between the age of 31-40, 6% of the people are between the age of 41-50 and
4% of the people are more than 50 years of age. Thus it can be concluded that majority of the
respondents are young.

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Table 4.2: Annual family income.

Annual family income


<3 lacs
3-8 lacs
8-13 lacs
13-18 lacs
>18 lacs
Total

No of respondents
25
44
18
10
3
100

Percentage
25
44
18
10
3
100

Chart 4.2 : Annual family income


3%
10%

25%

<3 lacs
3-8 lacs

18%

8-13 lacs
13-18 lacs
44%

>18 lacs

Data Analysis and Interpretation:


25% of the people have annual income below 3 lacs, 44% of the people have annual income
between 3-8 lacs, 18% of the people have annual income between 8-13 lacs, 10% of the people
have annual income between 13-18 lacs and 3% of the people have income more than 18 lacs.
Thus it can be said that most of the respondents are in the lower middle class income group.

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Table 4.3: Occupation

Occupation
Students
Service
Business
Homemaker
Total

No of respondents
45
41
14
5
100

Percentage
45
36
14
5
100

Chart 4.3: Occupation


5% 5%
students
13%

43%

34%

service
business
homemaker
others

Data Analysis and Interpretation:


45% of the people are students, 36% of the people are into services, 14% of the people do
Business, 5% of the people are home makers and other 5% of the people have other occupation.
Hence most of them are students followed by working executive.

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Table 4.4: Marital Status.

Marital Status
Married
Single
Divorced
Widowed
Total

No of respondents
45
55
0
0
100

Percentage
45
55
0
0
100

Chart 4.4: Marital Status


0% 0% 0%
Married
45%
55%

single
divorced
widowed

Data Analysis and Interpretation:


45% of the people are married, 55% of them are unmarried/single, there are no divorcees or
widowed. Since most of the respondents were students, they are single.

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Table 4.5: Educational Qualification.

Educational Qualification
Undergraduate
Graduate
post graduate
Total

No of respondents
16
53
31
100

Percentage
16
53
31
100

Chart 4.5: Educational Qualification


0%
16%
31%
undergraduate
graduate
post graduate
53%

Data Analysis and interpretation:


16% of the people are undergraduates, 53% of the people are graduates and remaining
31% of them are post graduates. Thus it can be concluded that majority of the
respondents are well educated.

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Table 4.6: Gender.

Gender
Male
Female
Total

No of Respondents
56
44
100

Percentage
56
44
100

Chart 4.6: Gender


Male
Female
44%
56%

Data Analysis and interpretation:


56% of them are Male and remaining 44% are female.

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Table 4.7: Do you use mobile apps?

Usage of mobile apps


Yes
No
Total

No of respondents
100
0
100

Percentage
100
0
100

Chart 4.7: Usage of mobile apps


0%

Yes
No
100%

Data Analysis and Interpretation:


All of them use mobile apps. Since the study related to usage of mobile apps for purchases the
sample selected were all those people who used mobile apps.

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Table 4.8: Do you purchase through mobile apps?

Purchases through Mobile


apps
Yes
No
Total

No of respondents.

Percentage.

57
43
100

57
43
100

Chart 4.8: Purchases through


Mobile apps
0%

43%
57%

Yes

NO

Data Analysis and interpretation:


57% of the people purchase through mobile apps and remaining 43% of them do not purchase
through apps. Thus it can be interpreted that most of the people who used mobile apps used it for
purchases also.

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Table 4.8a: Which of the following apps have you used for purchase?

Types of apps for Purchase


Taxi services
Airline apps
Railway apps
Bus services apps
Flipkart
Amazon
Snapdeal
Quikr
E-bay
Olx
Gaming apps
Zomato
Fitness
Mobile recharge
Others

No of Respondents
9
5
4
13
53
41
31
4
2
16
4
11
5
8
3

Percentage
15.78
8.77
7.01
22.8
89.47
71.92
54.38
7.01
3.5
28.07
7.01
19.29
8.77
14.03
5.26

Chart 4.8a: Types of apps for purchase


89.47
100
90
71.92
80
70
54.38
60
50
40
28.07
22.8
19.29
30 15.78
8.77 7.01
8.7714.035.26
20
7.01 3.5
7.01
10
0

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Data analysis and interpretation:


15.78% use Taxi services apps, 8.77% use Airline apps, 7.01% use Railway apps, 22.8% use bus
services apps, 22.8% use bus services apps, 89.47% purchase through Flipkart app, 71.92%
purchase through Amazon app, 54.38% Purchase through Snapdeal app, 7.01 use Qiker app, 7.01
use Quikr app, 3.5% people use E-bay app, 28.07% use Olx, 7.01% have gaming apps, 19.29%
have zomato, 8.77% have fitness app, 14.03% of them have mobile recharging app like
freecharge and paytm, 5.26% of the have other apps like common floor, Myntra, Jabong,
Bigbasket.etc.
Flipkart is found to be most popular app for purchases followed by Amazon and snapdeal.

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Table 4.8b: What type of products/services have you purchased by mobile apps?

Types of products/services purchased


Footwear
Clothing
Traveling
Groceries
Used products
Home appliances
Gadgets
Others

No of respondents

Percentage
51
53
14
3
15
11
29
0

89.47
92.98
24.56
5.26
26.31
19.29
50.87
0

100
90
80
70
60
50
40
30
20
10
0

Chart 4.8b: Types of products/services


purchased

Data Analysis and Interpretation:


89.47% people purchase Footwear, 92.98% of them buy clothing, 24.56% of them use for
Travelling, 5.26% purchase groceries, 26.31% buy used products, 19.29% have bought home
appliances and 50.87% have purchased gadgets. It can be seen that respondents are using mobile
apps for purchasing clothing and foot wear. This could be because most of them purchase brands
which provide quality and are reliable. The amount of groceries purchased through apps is
minimal. This proves that people would want to touch and feel the groceries to ensure quality.

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Table 4.8c: For how long have you been using Mobile apps for purchasing
products/services?

Duration of purchasing through apps


<year
1-2yrs
2-3yrs
>3yrs

No of respondents Percentage
20
35.08
36
63.15
1
1.75
0
0

Chart 4.8c: Duration of purchasing


through apps
80
60
40
20
0
<year

1-2yrs

2-3yrs

>3yrs

Data Analysis and Interpretation:


35.08% of the people have been using the apps from less than a year, 63.15% of them have been
using since 1-2 years, 1.75% of them have been using since 2-3 years and None of them here
have been using more than 3 years. This shows that usage of mobile apps have gained popularity
recently.

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Table 4.8d: What is the proportion of your purchases through apps in comparison to
through websites?

Proportion of purchases
Entire 100% through apps
>50% through apps
<50% through apps

No of respondents

Percentage
5
38
14

8.77
66.66
24.56

Chart 4.8d: Proportion of


purchases
80
60
40
20
0
Entire 100%
through apps

>50% through
apps

<50% through
apps

Data Analysis and Interpretation:


8.77% of them prefer purchasing only through apps, 66.66% of the people more than 50%
through mobile apps and remaining 24.56% of them prefer to purchase less than 50% through
mobile apps. Since most of the respondents are found to be young and single, they tend to make
most of the purchases through apps.

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Table 4.8e: Do you feel Secured while purchasing and paying through apps?

Feeling Secured
Yes
No

No of respondents

Percentage
57
0

100
0

Chart 4.8e: Feeling Secured


0%

Yes
No

100%

Data Analysis and Interpretation:


All of them here feel secured while purchasing through apps.

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Table 4.8f: Who influenced you to purchase through apps?
Influence for purchasing through apps
Friends
Siblings
Advertisements
Self-Motivation

No of respondents
Percentage
27
47.36
1
1.75
39
68.42
7
12.28

80

Chart 4.8f: Influence for purchasing through apps


70
60
50
40
30
20
10
0
Friends

Siblings

Advertisements

Self-Motivation

Data Analysis and Interpretation:


47.36% of the people are influenced by friends, 1.75% of them are influenced by siblings,
68.42% are influenced through advertisements, and 12.28% were Self-motivated to use apps.
Thus advertising plays an important role in influencing people to purchase through apps
followed by friends.
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Table 4.8g: How often do you purchase through mobile apps?

Interval of purchase
Weekly
Fortnightly
monthly
Occasionally

No of respondents
0
0
21
36

Percentage
0
0
36.84
63.15

Chart 4.8g: Interval of purchase


70
60
50
40
30
20
10
0
Weekly

Fortnightly

monthly

Occasionally

Data Analysis and Interpretation:


36.84% of the people shop monthly, 63.15% of the people purchase occasionally and none of the
people here shop weekly or fortnightly. Since most of the products purchased are clothing and
foot wear which are normally purchased occasionally, the respondents frequency is mostly
occasional followed by monthly.

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Table 4.8h. Do you prefer mobile apps for purchase over websites?

Preference between apps and websites


Always prefer
Sometimes prefer
never prefer

No of respondents

Percentage
17
29.82
40
70.17
0
0

Chart 4.8h: Preference between apps and


websites
80
60
40
20
0
Always prefer

Sometimes prefer

never prefer

Data Analysis and Interpretation:


29.82% of the people always prefer to purchase through apps, 70.17% of them sometimes prefer
to purchases through apps, there are no respondents here to say not to prefer to purchase through
apps. Preference for mobile apps is higher than website for purchases.

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Table 4.8i. Do you get attracted by the offers and discounts given by the company for
purchasing?

Level of getting attracted


Yes always
Sometime
never

No of respondents

Percentage
40
70.17
15
26.31
2
3.5

Chart 4.8i: Level of getting attracted


80
60
40
20
0
Yes always

sometime

never

Data Analysis and Interpretation:


70.17% of the people get attracted to the promotional offers, 26.31% of them sometimes get
attracted, Remaining 3.5% of them do not get attracted. Thus offers and discounts are found to
attract respondents to purchase through apps.

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Table 4.8j: Will you be using Mobile apps for purchases in future also?

User's Decision
Yes
No

No of Respondents Percentage
57
100
0
0

Chart 4.8j: User's Decision


0%

yes
no

100%

Data Analysis and Interpretation:


All the respondents here who have used apps for purchasing here say that they would be using
apps to purchase in future also.

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Table 4.9b: Why dont you use Mobile apps for purchases?

Reasons
Inconvenient
Never got to know
Not Attractive
Does not contain much details
Others

No of Respondents Percentage
14
32.55
8
18.6
9
10.93
9
10.93
3
6.97

Chart 4.9b: Reasons


35
30
25
20
15
10
5
0
Inconvenient Never got to Not Attractive
Does not
know
contain much
details

Others

Data Analysis and Interpretation:


32.55% of the people feel it is inconvenient to purchase through apps, 18.6% of them never got
to know to purchase through mobile apps, 10.93% of them feel apps are not attractive, 10.93% of
the people here feel apps dont contain much detail than websites and 6.97% of the people give
other reasons like not interested, dont want to install..etc.
Inconvenience was the major reason for not using apps for purchases followed by lack of
awareness. This maybe because the respondents are not comfortable in making online payments.
Since flipkart offers cash on delivery, it is found to be widely used.

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A Study on The Usage of Mobile apps for Purchases


Table 4.9b: Do you carry out online purchases?

Online purchases
Yes
No

No of Respondents
Percentage
43
100
0
0

Chart 4.9b: Online purchases


0%

Yes
No

100%

Data Analysis and Interpretation:


All the respondents here who said they dont purchase through apps are found to be purchasing
online. This maybe because of the habit.

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A Study on The Usage of Mobile apps for Purchases


Table 4.9c: How often do you shop online?

Frequency of purchases
Weekly
Fortnightly
Monthly
Occasionally

No of Respondents Percentage
0
0
0
0
6
9.3
37
86.04

Chart 4.9c: Frequency of purchases


100
80
60
40
20
0
Weekly

Fortnightly

Monthly

Occasionally

Data Analysis and Interpretation:


9.3% of the respondents shop monthly, 86.04% of the people shop occasionally And none of the
respondents here shop weekly or fortnightly. Thus even the online purchases are restricted to
occasional or monthly.

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A Study on The Usage of Mobile apps for Purchases


Table 4.9d: Do you feel that only through websites purchasing and paying is secured?

Purchaser's view
Yes
No

No of Respondents

Percentage
30
70
13
30

Chart 4.9d: Purchaser's view


0%

30%
yes
no
70%

Data Analysis and Interpretation:


70% of the people say that they feel secured while purchasing and paying online. And the other
30% of them dont feel secured to pay and take an option to pay on delivery.

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A Study on The Usage of Mobile apps for Purchases


Table 4.9e: If purchasing through apps becomes easier than websites, would you purchase
through mobile apps?

User's view
Yes
No

No of Respondents
Percentage
34
79
9
21

Chart 4.9e: User's view.


0%
21%
yes
no
79%

Data Analysis and Interpretation:


79% of the respondents here say that they would lean towards apps if it becomes more easier
than websites and the remaining 21% of the people want to continue shopping through websites
and dont want to purchase through apps. Thus companies can design mobile which are
convenient and simple to use in order to promote its usage.

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A Study on The Usage of Mobile apps for Purchases

Table 4.9f: Does promotional offers and discounts attract you to install and
purchase through mobile apps?

Level of getting attracted


Yes
No

No of Respondents Percentage
29
67
14
33

Chart 4.9f: Level of getting attracted


0%

33%
yes
no
67%

Data Analysis and Interpretation:


67% of the respondents here get attracted by the promotional offers for purchase through the
apps. And the other 33% do not get attracted to such promotions. Thus usage of mobile apps can
be increased by offering discounts for purchases.

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A Study on The Usage of Mobile apps for Purchases


Table 4.9g: Do you find websites are more user friendly than mobile apps?

User's View
Yes
No

No of Respondents Percentage
43
100
0
0

Chart 4.9g: User's View


0%

yes
no

100%

Data Analysis and Interpretation:


All the respondents here who dont purchase through apps feel that websites are more user
friendly than apps.

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A Study on The Usage of Mobile apps for Purchases


Table 4.9h: Will you start purchasing through apps if other people influence you?

Level of Influence
Yes
No

No of Respondents Percentage
29
67
14
33

Chart 4.9h: Level of Influence


0%

33%
yes
no
67%

Data Analysis and Interpretation:


67% of the people say that they would start purchasing through apps if other people influence
them and the remaining 33% of the people feel they cannot be influenced. Since majority of the
respondents are willing to use apps for purchases, the companies can influence them through
promoting good offers and discounts.

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A Study on The Usage of Mobile apps for Purchases


Table 4.9i: Will you be interested to install and purchase through mobile apps in future?

Willingness to purchase through apps in future

No of Respondents

Yes
No

Percentage

26
17

60
40

Chart 4.9i: Willingness to purchase through apps


in future
0%

40%

yes

no

60%

Data Analysis and Interpretation:


60% of the respondents say that they might start purchasing through the apps in future and the
remaining 40% of the respondents say they may not be using apps for purchases in future. This
shows the willingness of the respondents to shift to mobile apps.

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Chapter 5
Summary of Findings,
Suggestions and Conclusion

A Study on The Usage of Mobile apps for Purchases

5.1 Findings

Majority of the respondents are young men, well educated, single, students & working
executives in the lower middle class income group.

Most of the respondents here, who have used apps, have used apps to purchase also.

Flipkart apps have been used mostly followed by Amazon and Snapdeal.

The amount of groceries purchased through apps is minimal. This proves that people
would want to touch and feel the groceries to ensure quality.

Usage of apps for purchases has gained popularity recently.

Young respondents here tend to purchase through apps more than through websites.

All the respondents here who use apps for purchases feel secured to purchase through
apps.

Advertising plays an important role in influencing people to purchase through apps.

Most of the respondents here purchase occasionally followed by monthly.

Preference of mobile apps for purchases is more than websites.

Offers and discounts are found to attract the respondents to purchase through apps.

All the respondents here who use apps for purchases are willing to continue purchase
through apps in future also.

Inconvenience is the major reason for certain respondents for not using apps for
purchases.

As people are getting used to internet in recent times, all the respondents here shop
online.

Online purchases are also restricted to occasionally and monthly.

Respondents who do not use apps for purchases say that if apps become easier than
websites, then they would lean towards apps for purchase.

Respondents who use websites for purchases say that only websites are user friendly than
apps.

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A Study on The Usage of Mobile apps for Purchases

5.2 Suggestions

The researcher would suggest that the companies must try to come up with apps with
good designs to increase the purchases through apps.

The company must try to come up with different promotional offers and discounts which
would also increase the number of purchases through apps.

The frequency of purchase can be increased from the current monthly to weekly by
giving incentives through frequency programs.

Apps can be popularized through advertisements to increase its awareness and usage.

Customers may be given incentives to try to use mobile apps as it is found that once the
customer uses the apps, they are found to be comfortable with the app usage.

5.3 Conclusion
The researcher would conclude that there are more number of smart phone users who have used
apps and also use apps for purchases, but there are certain respondents who still dont use apps
for purchases. The above suggestions and findings would help the company to increase the
number of purchases through mobile apps.
The future is bright for the smart phones and hence there is bound to be great opportunity for the
marketers to promote their product sales through mobile apps.

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A Study on The Usage of Mobile apps for Purchases

BIBLIOGRAPHY

Books:

C R Kothari, Research Methodology, revised second edition, New Age International


Publishers, 2004.
Oppenheim A.N, Questionnaire Design and Attitude Measurement, New York, Basic
Books, 1966.
C R Kothari, Quantitative Techniques, second edition, Vikas Publishing House Pvt. Ltd,
1984.

Webliography:

Christina Warren, 4 In-app purchasing will change mobile,


http://mashable.com/2011/07/19/in-app-purchases
Ryan Matzner, How to communicate with users when your app or site crashes,
http://mashable.com/2011/10/19/downtime-communication-tips
Rachel Harrison, Usability of mobile applications: Literature review and rationale for
anew usability model. http://link.springer.com/article/10.1186/2194-0827-11/fulltext.html
Gunther Eysenbach, Mindfulness-Based Mobile Applications: Literature Review and
Analysis of Current Features,
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC4114453/
Laura Naismith, Literature Review in Mobile Technologies and Learning,
http://www2.futurelab.org.uk/resources/documents/lit_reviews/Mobile_Review.pdf

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A Study on The Usage of Mobile apps for Purchases

ANNEXURE
1. Age
<20 21-30 31-40 41-50 >51
2. Annual Family Income
<3lacs 3-8lacs 8-13lacs 13-18lacs >18lacs
3. Occupation
Student Service Business Homemaker Others (specify)

4. Marital Status
Married Single Divorced Widowed
5. Educational Qualification
Undergraduate Graduate Postgraduate
6. Gender
Male Female
7. Do you use Mobile Apps?
Yes No
8. Do you purchase through Mobile apps?
Yes No
If No, proceed to question 9 directly.
If Yes,
8 a. Which of the following apps have you used for purchase?
Taxi services Airline apps Railway apps Bus services apps Flipkart
Amazon Snapdeal qiker E-bay Olx Gaming apps Zomato
Mobile recharge Others (specify)
.
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A Study on The Usage of Mobile apps for Purchases

8 b. What type of products/services have you purchased by mobile apps?


Footwear Clothing Traveling Groceries Used products
Home appliances Gadgets Others (specify)
.
8 c. For how long have you been using Mobile apps for purchasing products/services?
<year 1-2yrs 2-3yrs >3yrs
8 d. What is the proportion of your purchases through apps in comparison through websites?
Entire 100% through apps >50% through apps <50% through apps
8 e. Do you feel Secured while purchasing and paying through apps?
Yes No
8 f. Who influenced you to purchase through apps?
Friends Siblings Advertisements Self-Motivation
8 g. How often do you purchase through mobile apps?
Weekly Fortnightly monthly Occasionally
8 h. Do you prefer mobile apps for purchase over websites?
Always prefer Sometimes prefer never prefer
8 i. Do you get attracted by the offers and discounts given by the company for purchasing
through apps?
Yes always

sometimes never

8j. Will you be using Mobile apps for purchases in future also?
Yes

No

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A Study on The Usage of Mobile apps for Purchases

9a. why dont you use Mobile apps?


Inconvenient Never got to know Not Attractive Does not contain much details
Do not own a smartphone Others (specify)

9b. Do you carry out online purchases?


Yes No
9c. How often do you shop online?
Weekly Fortnightly Monthly Occasionally
9d. Do you feel that only through websites purchasing and paying is secured?
Yes No
9e. If purchasing through apps become more easier than websites, would you purchase
through mobile apps?
Yes No
9f. Does promotional offers and discounts attract you to install and purchase through mobile
apps?
Yes No
9g. Do you find websites are more user friendly than mobile apps?
Yes No
9h. Will you start purchasing through apps if other people influence you?
Yes No
9i. Will you be interested to install and purchase through mobile apps in future?
Yes No

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