ISSN No. 0975-7708 SAMIKSHA The Research Journal of United Institute of Management, Allahabad, U.P., India

Volume VI No. 1 & 2 Jan - Dec 2015

Regulatory Developments and Its impact on Securitisation Market in India Ajeet Kumar Maurya

Conceptual Model of Social Media Governance: Promoting Good Governance Shraddha Bhadauria

Water Management in Indian Agriculture: Issues and Strategies Dr. V. Basil Hans

After Sale Services: An Important Aspect in Two Wheeler Automobile Industry Mohd. Nasir

Influence of Technical Parameter on Preference of Potential Customers towards Compact SUV Dr. S.S. Jasial

Stress in Today’s World Dr. Arpita Mishra, Manisha Agarwal & Vikas Malhotra

Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats Dr. M. Vasan

Improving Security in VANET through the Position Verification of Alert Message Ajay Kumar Yadav & Brijesh Kumar Bhardwaj

E-retailing: Challenges and Opportunities in India Dr. Vandana Pandey, Pankaj Kumar Tripathi & Dr. Mohd Anam Akhtar

Rural education in India (A Contextual Commentary) Mohit Kumar & Rohit Kumar Vishwakarma

Discrete Overview on Public Sector Undertakings: Growth of PSUs Under the benefits of better Human Resource Mudita Gupta & Dr. Devendra Prasad Pandey

A Study on Initiatives, Achievements and Progress of Financial Inclusion in India Prakash Kundnani

The Theoretical Underpinnings of Store Loyalty: A Perspective Dr. Manoj Kumar Srivastava

Evolving Dynamics of Social Media in Indian Political Paradigm Amit Kumar, Prof. (Dr.) Somesh Dhamija & Dr. Aruna Dhamija

Bi – Annual Journal

United Institute of Management Allahabad SAMIKSHA Volume VI, No. 1 & 2, Jan - Dec 2015 United Institute of Management, Allahabad Copyright © UIM, Allahabad Bi – Annual Journal

CHIEF PATRON Mr. Girdhar Gopal Gulati Chairman United Group of Institutions

PATRON EDITOR-IN-CHIEF Dr. Jagdish Gulati Prof. K.K Malviya President Principal United Group of Institutions UIM, Allahabad

REVIEW EDITOR CONSULTING EDITOR Mr. Vikas Mehrotra Dr. Manu Johari Asst. Professor, Dept. of MBA Associate Professor, Dept. of MBA UIM, Allahabad UIM, Allahabad

EXECUTIVE EDITOR MANAGING EDITOR Dr. Manmohan Mishra Mr. Rohit Kumar Vishwakarma Asst. Professor, Dept. of MBA Asst. Professor, Dept. of MBA UIM, Allahabad UIM, Allahabad

EDITORIAL ADVISORY BOARD

Prof. S.K. Singh Prof. Suneel K. Maheshwari Head & Dean, FMS, Marshall University, BHU Huntington, West Virginia

Prof. A. Sahay Dr. Mahesh Kumar Singh Professor of Eminence Professor, Szent Istvan University, BIMTECH, Greater Noida Hungary

Prof. K.M. Sharma Prof. A.K. Tripathi Former Director, MONIRBA Professor, Computer Science University of Allahabad Institute of Technology, BHU

Prof. Geetika Mr. Gaurav Gulati Head, SMS Vice-President, MNNIT, Allahabad UGI Allahabad

Journal of UIM Allahabad is published bi-annually. All edition correspondence and article for publication should be addressed to the Editor Samiksha at United Institute of Management, UPSIDC Industrial Area, Naini Allahabad U.P.

Views expressed in the article are those of the respective authors. Neither Journal (Samiksha) of UIM Naini nor the Institute can accept any responsibility for, nor do they necessarily agree with the view expressed in the articles. All the copyrights are respected. Every effort is made to acknowledge source material relied upon or referred to, but ‘UIM’ does not accept any responsibility for any inadvertent omissions.

Except as authorized, no part of the material published in The Journal ‘Samiksha’ may be reproduced, or stored in retrieval systems, or used for commercial or other purposes. All the Rights are reserved.

Printed and Published by Dr. Jagdish Gulati on behalf of the United Institute of Management, UPSIDC Industrial Area, Naini, Allahabad (U.P.) India. Printed by Shantanu Publishers, Mumfordganj, Allahabad, 211002. Email: [email protected], [email protected]

Editor: Prof. K.K. Malviya SAMIKSHA Journal of UIM, Allahabad

From the Editorial Board

nited Institute of Management is proud to announce the publication of the Vol. VI No. 1 of the ‘Samiksha’- A bi annual Management Journal. ‘Samiksha’ provides a glimpse Uinto a few of the many high quality research activities carried out by the talented authors. The journal is a compilation of outstanding papers from numerous disciplines submitted by various professors, industrialists and research scholars who have been involved in various research including scholarly and creative activities. The journal Samiksha is dedicated to the rapid dissemination of high quality research papers on how advances in various fields of management and technology can help us meet the challenges of the 21st century, and to capitalize on the promises ahead.

‘Samiksha’ provides an ideal forum for exchange of information of various areas including management, economics, information technology etc. and many more in the form of research papers, survey papers, work-in-progress reports on promising developments, case studies / best practice articles written by industry experts, and technological breakthrough. We welcome contributions that can demonstrate near-term practical usefulness, particularly contributions that take a multidisciplinary and convergent approach so that the many real world complex problems can be solved. There are also on-going issues, such as demographic changes (population aging, internal migration and rapid urbanization), management of resources, and environment issues like the current debate about climate change.

Joining the ideas of IT practitioners along with researchers in the field of management, the journal is intended to seek ways to harness the power of technology to meet some of these real world challenges, and to provide substance for making informed judgments on important matters. As for the promises that lay ahead, management along with IT along has already become an integral part of everyday life. From commerce to government functioning areas of scientific discovery, healthcare, education and entertainment; IT is indispensable and will continue to fuel further advances in all facets of human endeavours.

Finally, we would like to thank all the contributing authors for providing such a rich variety of outstanding research articles on a broad range of exciting topics. We wish to encourage more contributions from the academia and industry practitioners in the future to ensure a continued relevance. Contribution from the reviewers and guest editors would always be welcome for their comments and suggestions that could improve the quality of our journal.

Prof. K. K. Malviya Editor-in-Chief SAMIKSHA Volume VI, No. 1 & 2, Jan - Dec 2015

Contents

Regulatory Developments and Its impact on Securitisation Market in India 01 Ajeet Kumar Maurya

Conceptual Model of Social Media Governance: Promoting Good Governance 07 Shraddha Bhadauria

Water Management in Indian Agriculture: Issues and Strategies 15 Dr. V. Basil Hans

After Sale Services: An Important Aspect in Two Wheeler Automobile Industry 20 Mohd. Nasir

Influence of Technical Parameter on Preference of Potential Customers towards Compact SUV 26 Dr. S.S. Jasial

Stress in Today’s World 32 Dr. Arpita Mishra, Manisha Agarwal & Vikas Malhotra

Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats 40 Dr. M. Vasan

Improving Security in VANET through the Position Verification of Alert Message 49 Ajay Kumar Yadav & Brijesh Kumar Bhardwaj

E-retailing: Challenges and Opportunities in India 60 Dr. Vandana Pandey, Pankaj Kumar Tripathi & Dr. Mohd Anam Akhtar

Rural education in India (A Contextual Commentary) 66 Mohit Kumar & Rohit Kumar Vishwakarma

Discrete Overview on Public Sector Undertakings: Growth of PSUs Under the benefits of better Human Resource 70 Mudita Gupta & Dr. Devendra Prasad Pandey

A Study on Initiatives, Achievements and Progress of Financial Inclusion in India 73 Prakash Kundnani

The Theoretical Underpinnings of Store Loyalty: A Perspective 84 Dr. Manoj Kumar Srivastava

Evolving Dynamics of Social Media in Indian Political Paradigm 90 Amit Kumar, Prof. (Dr.) Somesh Dhamija & Dr. Aruna Dhamija Regulatory Developments and Its impact on Securitisation Market in India

Ajeet Kumar Maurya*

ABSTRACT

Securitisation is a process which converts an asset/a loan into a security to transact in a financial market. The securitisation provides many benefits to investors i.e. it helps to reduce the cost of borrowing, to decrease capital requirements, to maintain liquidity, portfolio diversification etc. RBI and SEBI are the major governing bodies which keep their eyes to regulate the securitisation market and save the interest of the issuers and investors. The objective of this paper is to discuss the regulatory changes and developments in recent years and their impact on securitisation market in India. The paper observes that there have been many ups and downs in Indian securitisation market which felt many regulatory changes from time to time. Consequently, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 (SARFAESI Act 2002) came into existence. RBI issued different guidelines on Securitisation and Direct Assignment Transactions of May 2012 and August 2012 as well as on Lending to Priority Sector in July 2012 and October 2012. Union Budget 2013-14 announced to exempt the income received through a securitization trust from income tax.

Keywords: Securitisation, Assets Backed Securities, Mortgage Backed Securities, Originator, Special Purpose Vehicle, Financial Market

INTRODUCTION These transactions normally incorporated the provisions of different expenses. But in recent years, the sales of different Securitization is the financial practice of pooling various types loans have become common through the direct assignment of contractual debt, such as residential mortgages, commercial route. Securitisation of auto loans was a prominent form mortgages, auto loans, or credit card debt obligations, and during 1990s but over the time, this market classified into selling said consolidated debt as pass-through securities, or various segments e.i. housing loans, corporate loans, collateralized mortgage obligation (CMOs) to various commercial mortgage receivables, future flow, project investors. The cash collected from the financial instruments receivables, toll revenues, etc that have been securitized. The underlying the security is paid to the investors who had major instruments which are traded in Indian securitisation advanced the money for that right. market, are Covered bonds, Mortgage-backed bonds (MBB), Asset-backed securities (ABS), Asset-backed commercial The securitisation came into existence in 18th century back in paper (ABCP), Credit-linked notes (CLN) and Colletarised USA but the present form of securitisation took place in Debt Obligations (CDO) etc. February 1970 when the US Department of Housing and Urban Development created the first residential mortgage-backed Players Involved in Securitisation security. In India, securitisation market originated in 1991 There are many players in the debt securitized market but when securitisation deal between Citibank and GIC Mutual following three are the major players: Fund took place for Rs 160 millions but it got significant 1. Originator: This is the main organisation who gives existence only after 2000 when there established a narrow band money in form of the loan not in form of the debt of investor community and regular issuers. In the early 1990s, securitization. It may include large organizations like RBI, securitisation was essentially a way of two sides’ acquisitions SBI, other banks etc. of portfolios of finance companies. The creation of 2. Special Purpose Vehicle: Special Purpose Vehicle (SPV) is securitisation of a debt security was very uncommon and the that party who gets loans or pool of loans from originator portfolios of securities simply got transferred from the balance and converts it into marketable securities. After sheet of the originator to that of another entity. converting it into marketable securities or papers or

*Ph.D Scholar, Faculty Management Studies, Banaras Hindu University, Varanasi (U.P) Email: [email protected] 02 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Demat, it becomes debt securitised. Then SPV sells it in the habits among the investors by minimizing the overall credit money market or any other financial market. These parties risk of the securities. They provide credit enhancement by way include private banks, NBFCs and other private financial of facilitating the swaps, hedges, guarantees, insurance etc. institutions. Credit Rating Agency provides a rating to the security for the 3. Qualified Institutional Buyers/Investors: Once the loans dealing into market based on structure, rating of parties, legal or pool of loans are converted into marketable securities, and tax opinion etc. Rating of the securitised instrument SPVs advertise for their debt securitised product to sell in provides the value addition to security and helps in the the market but they do not sell them to all. SPVs sell the decision making of the investors. Insurance Company / securities only to those investors who clear its condition. Underwriters are the organizations which provide risk cover All these clearing parties are called Qualified Institutional against redemption risk of the securities to the investor and Buyers (QIB). The investors/QIBs receive fixed or floating also help the SPVs to avoid the loss due to under-subscription rate interest from the SPV account which is funded by the of the securities. Trustee is the party which is appointed to cash flows generated through the portfolio of assets. supervise the activities of SPV and protect the investors’ interest. Obligor is a contractual debtor to originator and In addition to above three players, there are some other players whose debts and collateral constitute the underlying assets of who perform the important role in the securitisation market. securitization. Servicer is the person who collects money from Obligors and monitors and maintains the assets. Aggregator is the party who purchases the similar type of assets from one or more originators for the purpose of forming Reason for Securitisation: An Issuer’s perspective them into a pool of assets so that they can be securitized. By adopting the way of securitisation of debt/assets, the Depositor helps in creation of Special Purpose Vehicle for issuers avail several benefits such as it helps to reduce the cost performing the securitized transaction. They acquire the pool of borrowing, asset-liability mismatch, lessen the capital of assets from aggregator and deposits them to SPV. Credit requirements, transfer the risks, maintaining the liquidity etc. Enhancers are the supporter players who encourage the credit This may be explained with the below mentioned example.

ABC Ltd. Balance Sheet (As on 31/12/2013)

Liabilities Amount Assets Amount (Rs. Crores) (Rs. Crores) Share Capital 400 Investment in Assets 1000 Unsecured Debenture 1000 (mortgages) (“A” rated) Other 800 Deposits 600 Cash 200 Total 2000 Total 2000

The total assets of ABC Ltd. are Rs. 2000 crores which include Suppose the company needs some cash, there are various cash, investment in mortgage assets and other assets for Rs. 200 options that the company can avail for financing its cash crores, Rs. 1000 crores and Rs. 800 crores respectively while the requirement. liabilities include share capital, deposits and debentures for Rs. 400 crores, Rs. 600 crores and Rs. 1000 crores respectively. Option 1: Issue of new share The very first option available to every company is that it can issue fresh share. If the company issues new shares for Rs. 800 crores, the modified balance sheet will be as follows:

ABC Ltd. Balance Sheet (As on 31/12/2013)

Liabilities Amount Assets Amount (Rs. Crores) (Rs. Crores) Share Capital 1200 Investment in Assets 1000 Unsecured Debenture 1000 (mortgages) (“A” rated) Other Assets 800 Deposits 600 Cash 1000 Total 2800 Total 2800 Regulatory Developments and Its impact on Securitisation Market in India 03

After issuing fresh shares, the debt to equity ratio of company Option 2: Issue of new debt gets improved. It became 1.33:1 from 4:1. This option of The second option which the company can avail is the issue of financing is very useful for the company as the requirement of new debentures. Suppose the company issues the new ten funds get fulfilled very easily but this is not good for the years secured debentures for Rs. 800 crores. After issuing the shareholders because it will decrease the proportion of sharing new debentures, the modified balance sheet will be as below: the profits among them.

ABC Ltd. Balance Sheet (As on 31/12/2013)

Liabilities Amount Assets Amount (Rs. Crores) (Rs. Crores) Share Capital 400 Investment in assets 1000 Debenture (Unsecured) 1000 (mortgages) Debenture (Secured) 800 Other assets 800 Deposits 600 Cash 1000 Total 2800 Total 2800

The new issuance of debentures fulfilled the requirement of securitised asset is sold, the cash is added to assets and the cash as well as it also increased the overall figure of assets and securitised asset is taken off the balance sheet. If the company liabilities of company. Along with this, the debt to equity ratio goes this way, the debt to equity ratio will remain at same level also increased from 4:1 to 6:1. It means that the company is 4:1 which indicates a satisfactory leverage position as previous moving toward high leverage ratio. It may adversely affect the aw well as solvency ratio and credit rating will remain confidence of creditors and credit rating of company as high unchanged. leverage ratio signifies high financial risk. The below balance sheet depicts the changes if the company Option 3: Securitisation of mortgage assets goes for off-balance sheet treatment of the assets. The company There is another method to finance the requirement of cash via sells the mortgage assets for the value of Rs. 900 crores. It securitisation of assets. Most of the transaction in securitisation results that the cash is increased up to Rs.1100 crores and is structured in such a way that it will result in “off-balance mortgage assets decreased up to Rs. 100 crores while other sheet” treatment for the existing assets. In this case if items of balance sheet remain same.

ABC Ltd. Balance Sheet (As on 31/12/2013)

Liabilities Amount Assets Amount (Rs. Crores) (Rs. Crores) Share Capital 400 Investment in Assets 100 Unsecured Debenture 1000 (mortgages) (“A” rated) Other Assets 800 Deposits 600 Cash 1100 Total 2000 Total 2000

Option 4: Use of fresh cash to pay off debt The last and most suitable option of financing is the use of fresh cash to pay off debt. If the company uses Rs. 900 crore received from selling of mortgage assets to pay off its debt, the new balance sheet of company will be as follows: 04 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

ABC Ltd. Balance Sheet (As on 31/12/2013)

Liabilities Amount Assets Amount (Rs. Crores) (Rs. Crores) Share Capital 400 Investment in Assets 100 Unsecured Debenture 100 (mortgages) (“A” rated) Other Assets 800 Deposits 600 Cash 200

Total 1100 Total 1100

This option results that debt/equity ratio of the company gets withholding tax on interest paid by the borrowers to improved significantly from 4:1 to 1.75:1 which is very good for the securitisation trust and on distributions made by company’s creditors and shareholders. Timely redemption of the securitisation trust to its PTCs and/or SR Holders. debt increases the confidence of creditors and it also leads to • Listing of Securitized Debt: Pass through increase the amount of profit sharing among shareholders. Certificates (PTCs) and other securities issued by Thus this option is the most suitable option among all. securitisation SPVs / Trust SPVs should be notified as “securities” under SCRA. Regulatory changes and their impact on securitisation • Issues under SARFAESI: Large-sized NBFCs and market non-NBFCs corporate bodies established in India may be permitted to invest in SRs as Qualified Institutional Buyers (QIBs). Private equity funds The securitisation market in India is monitored and controlled registered with SEBI as venture capital funds (VCFs) by RBI, SEBI and SARFAESI Act 2002. The various regulatory may also be permitted to invest in SRs within the changes and its impact on securitisation market are classified limits that are applied for investment by VCFs into under three time periods. corporate bonds. • Credit Enhancement Mechanism: Introduction of The committee submitted its report in 2005 which proved a credit enhancement mechanism for corporate bonds turning point for the development of securitisation market. should be done. The State Government itself or the Some important recommendations of the Committee on Central Government or other willing market securitisation were as follows: participants, including bond insurers, could underwrite some of the tranches to enhance the credit 1. During 2001-02 to 2005-06 rating of tranches of the pooled asset. Credit During this period, an important act namely viz. enhanced CLOs and CDOs should be included as Securitisation and Reconstruction of Financial Assets and approved investment avenues. Enforcement of Security Interests Act, 2002 (SARFAESI • Specialised Debt Funds for Infrastructure Act 2002) came into existence to regulate securitisation Financing: Creation of specialised debt funds to cater and reconstruction of financial assets, enforcement of to the needs of the infrastructure sector should be security interest and for matters connected herewith. The done. act enables the banks to reduce their non-performing • Fiscal Concession for Municipal Bonds and assets (NPAs). Infrastructure SPVs: Government to review interest rates on small savings instruments need to be In order to develop the securitisation market, a High Level implemented to ensure that interest rates paid on Expert Committee on Corporate Debt and Securitisation1 small savings instruments are aligned with market was constituted under the chairmanship of Dr. R. H. Patil. rates. Fiscal support, like tax benefits, bond insurance • Stamp Duty on Securitized Debt: The Central and credit enhancement, for municipal bonds and Government should consider establishing an infrastructure SPVs should be enhanced by the appropriate institutional process to evolve a government. consensus across the States on the affordable rates and levels of stamp duty on debt assignment, Pass through Certificates (PTCs) and security receipts (Srs). • Taxation: An explicit tax pass-through treatment to securitisation SPVs / Trust SPVs should be provided. Wholesale investors should be permitted to invest in and hold units of a close-ended passively managed mutual fund scheme whose sole objective is to invest its funds in securitised paper. There should be no Regulatory Developments and Its impact on Securitisation Market in India 05

Figure 2: Growth of Securitisation Market (Rs. Billion)

Year 2001-02 2002-03 2003-04 2004-05 2005-06 Type Amount Share Amount Share Amount Share Amount Share Amount Share (%) (%) (%) (%) (%) ABS 12.9 35 36.4 47 80.9 58 222.9 72 178.5 72 MBS 0.8 2 14.8 19 29.6 21 33.4 11 50.1 20 CDO/LSO 19.1 52 24.3 31 28.3 20 25.8 8 21 8 Others 4 11 2.3 3 0.5 0 26 8 - 0 Total 36.8 100 77.8 100 139.3 100 308.1 100 249.6 100

Source: ICRA

During the 90th century, securitisation of auto loans was the establishment of a robust structured credit market. the core component of Indian securitisation market. But They clearly defined some of the key aspects such as true after 2000, the Assets Backed Securities (ABS) and MBS sale criteria, capital treatment for credit enhancement, (Mortgage Backed Securities) became the core exposure recognition etc. components in the growth of Indian securitised market. Both ABS and MBS were moved towards their peaks The extant law provides for securitization of debt by Asset during 2001-02 to 2005-06. The market of ABS was Reconstruction Companies and National Housing Bank. enlarged up to 15% in 2005-06 over 2001-02 and MBS However, the securitized debts had not included under market almost 50% during the same period. This growth Securities Contract Regulation Act (SCRA). But In 2007, was due to awareness among investors with the the Securities Contracts (Regulation) Amendment Act securitised assets and short period of issuance and the 2007 amended the Securities Contract (Regulation) Act to effect of establishment of SARFAESI Act 2002. include “securitised instruments” in the definition of “securities”. The amendment has paved way for listing 2. During 2006-07 to 2010-11 and trading of securitised debt on stock exchanges. RBI is the major governing body of the Indian securitisation market. It issues regulatory guidelines to In the same order, SEBI released draft regulations for control, monitor and strengthen this market. In February “Public Offer and Listing of Securitised Debt Instruments” 2006, the RBI issued guidelines for securitisation of assets in June 2007 which is yet to be formalised. However, these issued by Banks, FIs and NBFCs. These guidelines guidelines visualize a very different transaction structure provided the regulatory framework for several critical compared to current market practices. aspects of securitisation and are expected to take forward

Figure 3: Growth of Securitisation Market (Rs. Billion)

Year 2006-07 2007-08 2008-09 2009-10 2010-11 Type Amount Share Amount Share Amount Share Amount Share Amount Share (%) (%) (%) (%) (%) ABS 234.2 63 313.2 48 135.8 25 209.7 49 218.1 69 MBS 16.1 4 5.9 1 32.9 6 62.5 15 50.2 16 CDO/LSO 119 32 318.2 49 364.4 67 145.8 34 44.4 14 Others - 13 2 11.6 2 7.9 2 5.4 1 Total 369.3 100 650.3 100 544.7 100 425.9 100 317.1 100 Source: ICRA

These changes impacted that ABS market continued to period. During the 2010-11, the major fall in issuance grow till 2007-08 while MBS market moved toward volumes was seen in CDO/LSO issuance while other decline. Despite of being a global financial recession issuance of securities minutely fell. period during 2007-09, Indian securitisation market was not much affected by this. One thing very interesting 3. During 2011-12 to 2012-13 during this time was that CDO/LSO market continued to In order to control, monitor and strengthen the develop despite of global recession. Its effect was that the securitisation market, RBI again issued some guidelines total volume of securitisation market was Rs. 650.3 billions on Securitisation and Direct Assignment Transactions in in 2007-08 which was the highest during the mentioned May 2012 and August 2012 for banks and NBFCs which 06 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

prohibited the credit enhancement by originators in direct In Union Budget 2013-14, the government announced that assignment transactions and also increased the minimum the income of a securitization trust would be exempted holding period from 9 months to 12 months. It also issued from income tax. Tax shall be levied at the time of guidelines on Lending to Priority Sector in July 2012 and distribution of income by the securitization trust and the October 2012 which restricted Non Banking Financial distributed income once received by investors will not be Companies (NBFCs) from qualifying as Priority Sector taxable in their hands. Lending which was a big shock for banks.

Figure 4: Growth of Securitisation Market (Rs. Billion)

Year 2011-12 2012-13 Type Amount Share (%) Amount Share (%) ABS 260.7 71 266.3 88 MBS 76.8 21 36.2 12 CDO/LSO 22.2 6 - Others 6.4 2 - Total 366.1 100 302.5 100 Source: ICRA

The total issuance in securitisation market was Rs. 302.5 billion References in 2012-13, a decline of almost 17% over the previous year. The ABS market showed a small growth in 2012-13 over the 1. Bajaj, Ujjwal “Securitisation In India : A Bumpy Ride” Indian previous year while MBS shrunk more than 50%. The reason of Journal of Applied Research, Vol.3(9) September 2013, pp.321- this trend was the RBI guidelines issued on Securitisation and 323. Direct Assignment Transactions in May 2012 and August 2012 2. Blommestein, Hans J. et.al. “Outlook for Securitisation Market” for banks and NBFCs which restricted the banks and NBFCs OECD Journal: Financial Market Trends, Vol. 1. (2011). PP.1- from credit enhancement for direct assignment transactions. 18. Due to that, the originators had to move from direct 3. CARE “Retail Asset Securitization market in FY14: Overview” assignment route to conventional route and it adversely June 2014. affected the growth of securitisation market. 4. Dun and Bradstreet India, Arcil “Securitisation in India: The Story So Far And The Way” 2008. Conclusion 5. Gaschler, Tara E. “Understanding the Securitization Process and the Impact on Consumer Bankruptcy Cases” American There have been many ups and downs in Indian securitisation Bankruptcy Institute. market. The total issuance volume of securitisation market 6. Gopinath, Shyamala “Securitisation Markets In India – A Post- grew continuously over the seven years from 2001-02 to 2007- Crisis Perspective” BIS Review 105 (2010). 08 but after that it started to decline. The reason behind this can 7. ICRA Limited “Update on Indian Securitization Market” 2013. be seen due to many regulatory changes. The enactment of the 8. India Rating & Research “Outlook: Indian Structured Finance” Securitisation and Reconstruction of Financial Assets and 2013. Enforcement of Security Interests Act, 2002 (SARFAESI Act 9. India Rating & Research “Impact of RBI’s 2012 Guidelines on 2002) provided a framework in the establishment of assets Securitisations” 2013. reconstruction companies specialising in securitising assets 10. Jobst, Andreas “What Is Securitization?” Finance & purchased from banks which helps to spread the awareness Development September 2008, pp48-49. with the securitised assets among investors. After that RBI 11. Kothari, Vinod “What is securitization?” Guidelines on Securitisation and Direct Assignment 12. Nadauld, Taylor D. and Weisbach, Michael S. “Did Transactions of May 2012 and August 2012 prohibited the Securitization Affect the Cost of Corporate Debt?” May, 2011. investors to enhance credit by direct assignment route and it 13. Patil, Dr. R. H. “The Report of the High Level Expert Committee also increased the minimum holding period up to 10 months on Corporate Bonds and Securitization” 2005. from 9 months. These guidelines converted the soft regulatory 14. Rao “Securitization Market in India” May 2011. environment into rigid environment. Further RBI guidelines 15. Rao, T.V.S. Ramamohan “Securitization, Ratings, and Regulatory Practices” IGIDR Proceedings/Project Reports on Lending to Priority Sector in July 2012 and October 2012 and Series, pp.062-08. the announcement to exempt the income generated through a 16. Reserve Bank of India “Guidelines on Securitisation of Standard securitization trust from income tax in Union Budget 2013-14 Assets” 2006. also strongly affected the securitisation market. The 17. SEBI “Public Offer and Listing of Securitised Debt securitisation market in India has potential to grow but there Instruments” 2007. are needed some more effective steps by the concerned 18. Slaughter and May “Model to Guide Securitisation regulatory bodies so that the market can be more developed Techniques” PLC Cross-border Structured Finance and and can attract more parties like Banks, NBFCs, Mutual Funds Securitisation Handbook, 2010. etc. Conceptual Model of Social Media Governance: Promoting Good Governance

Shraddha Bhadauria*

ABSTRACT

Social Media in recent times has become synonymous with Social Networking sites such as Face book or Micro blogging sites such as Twitter. Social media tools have revolutionized knowledge sharing and accountability in governance. The advent of Gen Y has changed the rules of the business. Taking both together calls for a radical change that Indian PSUs need to bring in their functioning to maintain their reputation, manage risks, align with the expectations of the workforce and have a competitive advantage. Social media tools have revolutionized knowledge sharing and accountability in governance. In this context, this paper focuses on the need to add Social Media Governance to the Corporate Governance framework. A conceptual model has been suggested which could be useful to Indian PSUs to manage perceptions and interest of the stakeholders in promoting good Corporate Governance.

Keywords: Corporate Governance, Social Media Governance, Gen Y.

INTRODUCTION videos, blogs, and online social networking websites like Face book, Linked in, Twitter etc have revolutionized accountability In recent time, Social Media has become synonymous with in governance. Social Networking sites such as Face book site. However, very broadly social media can be defined as any web or mobile All over the world, organizations are using Social technologies. based platform that enables an individual or agency to It has been reached at critical scale shown in Exhibit 1, 2, 3. communicate interactively and enables exchange of user Social networking and blogs, in particular, are used most generated content. Social media tools for sharing photos, heavily in externally focused processes that gather competitive intelligence and support marketing efforts [2].

Exhibit 1: Rising adoption rates

*Lecturer, Sri SIIM, Sri Sharada Institute of Indian Management - Research New Delhi. 08 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Exhibit 2: Adoption of social technologies across industries

Exhibit 3: Changing processes

GEN Y workforce [3]. The unique characteristics of this generation Gen Y now entering employment in vast numbers - will shape mean that they have their own way of working and respond to the world of work for years to come. Millennials’(alias ‘Gen Y’ - a particular management style. Millennials want to be able to born between 1980 and 2000) career aspirations, attitudes work in the way that suits them best - and with over half saying about work and level of comfort with new technologies could that they prefer electronic communication to face to face, or define the culture of the 21st century workplace. They’re also telephone conversations, this inevitably means a way of more numerous than any since the soon-to-retire ‘baby working that’s closely tied to technology. Millennials’ use of boomer’ generation - millennials already form 25% of the technology is a particular flashpoint, with 54% saying that workforce in the US and account for over half of the population older senior management didn’t understand the way they use in India. By 2020, millennials will account for 50% of the global technology at work [3]. Conceptual Model of Social Media Governance: Promoting Good Governance 09

Therefore, the companies need to rethink their ways of working and connecting with this set of Gen-Y workforce. The • engaging with inappropriate content (e.g. ‘flaming’, imperative for organizations’ is to acknowledge the revolution denigrating others, racist or sexist this Gen Y has brought in this world, and tech up to add the • language, cyberbullying, pornography, etc); social media tools like blogs, photos, etc and social networking • Reputation damage through any of the above; sites like Facebook, Linkedin etc in their structure, processes • Legal actions for defamation or damages (ISACA, 2010, p. and DNA to gear up and accommodate this Gen Y, to survive in 7; Zerfass, Fink & Linke, this changed world. Also, adding social media governance to • 2010, p. 6). the Corporate Governance framework is the way forward to manage the perception and interest of stakeholders. Corporate governance Corporate governance is the philosophy that a corporation Literature Review practises in its relationships with the shareholders, lenders, employees and other stakeholders, including society at large In India, practice of using social media platforms by the [7]. governmental agencies has gained pace. In Indian context, Ministry of External Affairs excelled in using these platforms Corporate governance is a system of structures and processes when its Public Diplomacy (PD) division launched its Twitter to direct and control the functions of an organization by setting account on July 10, 2010. The launch of such account heralded a up rules, procedures and formats for managing decisions new history of government-stakeholder communications in within an organization. It specifies the distribution of rights India. The platform is regularly used by Indian diplomats and and responsibilities among company’s stakeholders the Prime Minister's Office (PMO) for routinely tweeting on (including shareowners, directors, and managers) and foreign policy matters [6]. At present, social media sites have articulates the rules and procedures for making decisions on accounts of traffic controls, police departments, municipal corporate affairs. It thus provides the structure for defining, corporations and health institutions etc. implementing and monitoring a company’s goals and objectives and ensuring accountability to appropriate Keeping in view the need of a guideline to encourage stakeholders [8]. government institutions to use these platforms as a channel of communication, Department of Information Technology, The Indian model of Corporate Governance is an amalgam of Ministry of Communications and Information Technology, the Anglo-American and German models (Model I) [9]. Government of India came up with a ‘Framework and Guidelines for Use of Social Media for Governmental Organisations’ in September, 2011, cited at [1].

The question which becomes imperative to address in regard to such guideline is whether creation of a guideline by itself is sufficient enough to celebrate or there exists some concerns to be noted in this regard [6]. Social media is used by several government organisations to engage with various stakeholders for the purposes of disseminating information, seeking inputs into policy making, recruitment, providing access to services, educating stakeholders, etc. [1].

It has been reported that a very limited amount of research has been conducted into social media governance [4]. Model I: Corporate governance, accountability and enterprise - Indian model for PSUs Social Media Governance comprises of:- • Guidelines for communicating through social media. An organization has two kinds of stakeholders [7]: • Tools for monitoring stakeholder communication on the • Active social web; • Passive • Training programs for social media; and • Key performance indicators for measuring social web The active stakeholders they may be shareholders or activities .[5] professionals or a mix of both are expected to manage the enterprise in the best interests of all the stakeholders. Hence, it Social media governance is an important issue worthy of study, is their responsibility to ensure fair and equitable treatment to as lack of governance in relation to employees’ use of social all the stakeholders. The active stakeholders, by virtue of the media exposes organisations to significant risks including [4]: powers conferred on them by all the other stakeholders, have • Release of confidential information or trade secrets; control over the interests of others in addition to the resources • Public embarrassment through employees commenting that they manage. The other set of stakeholders are passive. inappropriately online or Often, they become helpless spectators of the goings-on in the 10 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

organization. It is desirable that these passive stakeholders response - given/not given, type of response - official keep a watch on the quality of the enterprise management, and /unofficial, response time - 1 day/1 week etc. so that intervene at the earliest possible opportunity and in the most expectations are set correctly. effective manner [7]. b. Response: It defines the significant points that may be noted while creating a policy for responses. In the Linking Social Media Governance to Corporate policy, the response time should be clearly specified. Governance Framework of Indian Psu’s. Also, identity of the individual in personal or official capacity has to be disclosed. The Escalation A number of studies and surveys have revealed that stock Mechanism is defined to address the responses and markets are very sensitive to any news and social media acts as queries including when the “official” response is a catalyst to spread news and opinions. With the high speed of solicited on the posts / comments. news spread, large amplification of its reach and increasing propensity of general public to consume data over social 3. Resource Governance platform, social media is likely to have a great impact on the a. Allocation of Resources: Since using social media is a capital market. Social sites act as an indicator of people’s mood resource intensive exercise, it is important to ensure and enable investors to learn about other people’s opinions that resources and their responsibilities are clearly regarding stocks and index. Impact of Social media is not only marked out very early. To create a dedicated team has limited to stock market but various other areas of corporate been suggested. concern alike. SEBI has disclosed that it is working on b. Roles & Responsibilities: The roles and guidelines for use of social media by Corporate [11]. responsibilities of the team responsible for creating, managing and responding on social media platforms With the advent of Social media, the challenges to manage the must be clearly defined. The responsibility for expectations of these stakeholders with integrity and probity matters related maintenance of login ids and being faced by the Indian PSUs, is discussed in this paper and passwords, issues related to data security, archives, solution is provided to overcome the problems in an ethical privacy, etc. manner. c. Accountability: Clearance systems that distinguish between situations when an official position is The Framework and Guidelines for Use of Social Media for required, and when open conversation is Governmental Organisations’ in September, 2011, cited at [1] appropriate. This has to have at its heart a redefinition describes a Governance structure given below in this section: of accountability. The officials designated for 1. Account Governance engagement with citizen using the social media a. Account Creation: A social media account establishes should be covered under a well defined immunity an organisation’s online identity. Wherever possible, provision in consonance with the RTI Act and the IT the same name for the different social networking Act and the IT Amendment Act 2008. accounts may be adopted to ensure ease of search on the internet. 4. Content Governance b. Login and passwords: Each new account requires a a. Content Creation & Social media profiles overlap, URL, user name and/or email address and a therefore sharing consistent content on all social password. A proper record of login ids and password media platforms should form the bedrock of content must be maintained. This is critical as multiple people policy. While the social media tools allow everyone to may be authorised to post on behalf of the become a creator, for the official account, content will department. have to be specified and tailored to the site on which it c. Account Status: It is important to define whether the is being published. engagement may be undertaken through official b. Accessibility: In order to enable wider participation, accounts only or the officials may be permitted to use content creation and availability should be in Indian personal accounts also for posting official responses. languages and must not be limited to text alone. The content should follow the Government of India It determines who says what on behalf of your Guidelines for Website and adequately address organisation and in what form it is published. It also challenges related to accessibility in Indian outlines how each piece of published information is Languages as well as accessibility of content for presented where it is published. The most important differently abled. aspect is whether the responses are in Official or c. Moderation: A moderation policy should also be Personal Capacity. published if the platform permits others to add their own content; this informs people what they can post 2. Response and Responsiveness whilst protecting others who may visit your platform. a. Responsiveness: This indicates the how often would The moderation policy should include matter related the pages/information be updated, in what manner to copyright, rights to addition and deletion etc. would the responses be posted, what would be the d. Records Management: When any information is turnaround time of responses etc. The scope of shared or guidance given online, it is necessary to Conceptual Model of Social Media Governance: Promoting Good Governance 11

ensure that all relevant records are captured, trail is i. When Government department provides such social generated and records are managed appropriately. media facilities on its network, receives, stores or Some of the important aspects that may be kept in transmits any particular electronic record on behalf of mind while defining record management guidelines another person or provides any service with respect are as under: to that record, they become intermediary under • The requirements for existing legislations e.g. Section 2(1)(w) of the amended Information RTI etc. need to be kept in mind and are Technology Act, 2000. paramount in influencing decisions regarding record keeping. Section 79 of the amended Information Technology • Ordinarily, if online consultations do not impact Act, 2000 provides the broad principle that decision making, lead to or influence policy intermediaries like Government departments making (e.g. seeking information about nodal providing social media facilities are generally not officers, or any other public document, or liable for third party data information or responding to generic comments such as communication link made available by them. governance should be improved etc.) the However this exemption from liability can only be agencies may decide that no record of such applicable if the said Government department interactions will be maintained. complies with various conditions of law as prescribed • However, if consultations are necessarily being under Section 79 of the amended Information undertaken on specific policy or governance Technology Act, 2000. issues or that may influence decision making (e.g. inputs into Plan Document, consultation on The said conditions which need to mandatorily policy frameworks etc.) then all necessary complied with the Government department to claim records need to be maintained. If the agency is exemption for any third party data information or using a social media site that does not facilitate communication link made available or hosted by record keeping, then there are various other them in connection with social media facilities made options that may be explored. available by the said department on their network are as follows: Some of the options are given below and may be exercised • The function of the Government department is based on need and resources available: limited to providing access to a communication • Records may be created agency’s internal platform and system over which information made available by records be maintained with appropriate tags e.g. creator third parties is transmitted or temporarily stored; or /sender, dates, posting site etc. hosted • Screenshots may be captured and stored in soft or hard • The Government department does not (copy) format and filed at appropriate place. (i) initiate the transmission, • A summary may be created of the information/ (ii) select the receiver of the transmission, and consultation and filed. (iii) select or modify the information contained in the transmission Since most of the social media platforms are based outside • The Government department observes due diligence India and are not governed by Indian Laws, or managed and while discharging its under this Act and also observes controlled by Indian regulations, specific policies may be such other guidelines as the Central Government may drafted related to information security and archiving. If prescribe in this behalf. required the agencies may engage with the Social Media • That the Government department as intermediary Service Providers to work out Service Level Agreements for must not conspire or abet or aide or induce, whether by threats or promise or otherwise in the commission • Complaint and response mechanism between the agency of the unlawful act. and the Service • That the Government department must immediately • Provider after receiving actual knowledge, or on being notified • Content Storage by the appropriate Government or its agency that any • Shared access of the content information, data or communication link residing in • Archival mechanisms or connected to a computer resource controlled by the Government department is being used to commit the 5. Legal Provisions: In India, the legal implications must be unlawful act, must expeditiously remove or disable viewed in accordance with the law of land e.g. RTI Act, IT access to that material on that resource without ACT 2000 & IT Amendment Act 2008 etc as also rules and vitiating the evidence in any manner. regulations made there under. • The Government department must also comply with all applicable rules, regulations and notifications in These policies must be circulated internally to ensure regard to their activity of providing social media uniformity of response. Some of the key sections and their facilities on its network. implications that must be kept in mind are as under: • That the Government department complies with the Information Technology (reasonable security 12 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

practices and procedures & sensitive personal data or sue the said Government department for damages beyond information) Rules, 2011. 5 crore Rupees in a court of competent jurisdiction. • That the Government department also complies with v. In case the concerned Government department does not the Information Technology (Intermediary comply with all the aforesaid laws, the said Government guidelines) Rules, 2011. department as also the person heading the department • That the Government department also implement and the concerned IT head would also be liable for reasonable security practices and procedures as criminal liability which could range from imprisonment envisaged under Section 43A of the amended of 3 years to life imprisonment and fine which could range Information Technology Act, 2000. from 1 lakh to 10 lakh Rupees.

6. Data & Information Security Governance: Rules for Privacy and data collection: While social networking The Government’s communication to citizens via social enables greater transparency, it is equally important to ensure media should follow the same data retention policy as its the protection of people from exposure to Inappropriate or communication through other electronic and non- offensive material. electronic channels. Data portability compliance varies from one social media platform to another. Hence, • Since profiles on social network are linked more often to privileged access may be mandated by the Government individuals and not Organizations, for the organisation’s along the same lines “take down notices” and site/page, a separate work profile may be created this can “information requests” currently being sent to social then be linked to a general email address that is accessible media and other platforms for intellectual property rights to anyone in the team, enabling them to administer the infringement and other offences. social networks without compromising on individual privacy. Provisions related to Personal Information & Security: • It is critical that social media policy for the Government is Under the Information Technology Act 2000, the Central compliant with existing law governing data protection Government has enacted various rules and regulations and privacy. Each department of the Government may be which impact social media. recommended to publish their own set of additional protections to safeguard privacy of citizens while Some of the most important in this regard are as follows: maintaining highest levels of transparency of Government bodies. i. The Information Technology (reasonable security • If the departments / agencies are collecting personal practices and procedures & sensitive personal data or information on a social media platform, the same must be information) Rules, 2011 define provisions for personal stated upfront. information & security and what constitutes sensitive personal data. The Government further stipulate that ISO Model of Social Media Governance 27001 is one acceptable standard of reasonable security practices and procedures. Thus, all Government In light of the above mentioned guidelines, a model of social departments which are providing social media facilities media governance is suggested which could be useful to Indian must comply with ISO 27001. PSUs to manage perceptions and interest of the stakeholders in ii. Further under the Information Technology (Intermediary promoting good Corporate Governance. guidelines) Rules, 2011, since the said Government department who is provide social media facilities is an I. ROADMAP FOR IMPLEMENTING SOCIAL MEDIA intermediary, it has to comply with the Information GOVERNANCE MODEL FOR INDIAN PSUs :- Technology (Intermediary guidelines) Rules, 2011. Under Rule 3(4) of the said rules, the Government department BLOCK A shall act within thirty six hours on receiving the written complaint form an affected person and where applicable, The prescribed model incorporates the guidelines on social work with user or owner of such information to disable media framework SPECIFICALLY on the Governance such information that is in contravention of sub-rule (2). structure [1] to be incorporated for the Indian PSUs for its social iii. In case, if the Government department does not comply media activity. with any of the above requirements of law, then they said Government department as also the concerned head of the BLOCK B department who is responsible for the social media facilities and the concerned IT head would be liable for • An assessment of the social media maturity level and civil and criminal consequences. identification of the gaps would set the pace of the Social iv. The civil consequences could consist of being sued for Media Governance policy. Eg. Listing out the social media damages by way of compensation up to 5 crore Rupees platforms where the Indian PSUs need to watch and under summary proceedings before the adjudicatory monitor; authorities specially constituted under the Information • An ethical policy on Social media in all its defined forms Technology Act, 2000. Further if person wants, they can need to be evolved consistent with other policies; Conceptual Model of Social Media Governance: Promoting Good Governance 13

Shareholders – Social Media Investors etc Revolution

Other Social Media Stakeholders Governance Management - - Customers / Board of Directors, Suppliers, Committees etc Partners etc

A B Assessment of the Social Media Account Governance Employees – Media maturity level & gaps Response and Responsiveness majorly Ethical Social Media Policy Resource Governance Millennial Training the staff involved Content Governance Legal Provisions (alias Gen Y) Cultivating an enabling Culture

Data & Information Maintaining Transparency & Security Governanc e Confidentiality Provisions related to Communication strategy-Trust Personal Information & Building/ Reputation of the Security PSUs, Govt. etc. Rules for Privacy and Crisis Management system data collection in place

Control of the internal resources [1] Monitoring Mechanism of data

/posts / comments on social sites

“Legs should be long enough to walk”

• Proper capability development of the PSUs in terms of the • Efforts should be made to have quick decision making and resources, dedicated teams etc to implement the Social immediate response to the Data leakages etc over social media Policy needs to be done; media; • Having a common approach for all stakeholders by bringing in transparency and maintaining Confidentiality Conclusion of corporate information - financial or non-financial over social media; The social media revolution and arrival of Gen Y in the • The organization’s image and reputation needs to be workforce, calls for having a governance structure that caters given top most priority. The business interest should be to the dynamic issues concerning social media and its impact protected in an ethical way; on Corporate Governance. Social Media Governance and its • The HR should be entrusted to cultivate an enabling adoption are at a very initial stage in India especially in Indian culture, put in place a robust crisis management system, PSUs. SEBI is also working to come out with the guidelines on privacy checks & internal controls and mechanisms in the subject for Corporates. Therefore, this conceptual paper consultation with the CMD, to implement a strong Social will guide the path forward for Indian PSUs for promoting Media Governance framework; good Corporate Governance and to gain competitive • All regulatory framework with its inter-linkages with the advantage. departments of the PSUs should be taken care of in the implementation process; • The business processes needs to be overhauled and aligned with the social media Tools and social networking sites; 14 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

References 12. Lisa Dorian, CA·CIA, “Social Media-It’s Time to pay Attention”, Institute of Chartered Accountants of British 1. “Framework and Guidelines for use of Social Media for Columbia, April, 2011. Government Organizations”, Department of Electronics and 13. “Governing the ‘voice of company’ in Social media”, KPMG, Information Technology, Ministry of Communications & 2011. Information Technology Government of India, 2011. 14. David F. Larcker, Sarah M. Larcker and Brian Tayan, “What Do 2. Jacques Bughin, Angela Hung Byers, and Michael Chui- 5th Corporate Directors and Senior. Annual Survey Mckinsey, November 2011. 15. Managers Know about Social Media?”, The Conference Board 3. “PwC Millennials at work - Reshaping the workplace in and the Rock Center for Corporate Governance at Stanford financial services”, www.pwc.com financial services. University, October, 2012. 4. Jim Macnamara, “Social Media Strategy and Governance”, 16. “Knowing your Tweet From your Trend: Keeping pace with Public Communication at the University of Technology Sydney, Social media in the workplace”, A research study by DLA Piper, 2011. a global Law firm. 5. Zerfass, Verhoeven, Tench, Moreno and Verc?ic?, European 17. Claudio Cioffi–Revilla, “Computational social science,” Wiley Communication Monitor 2011, 2011. Interdisciplinary Reviews: Computational Statistics, volume 2, 6. http://www.legalservicesindia.com/article/article/social-media- issue 3, pp. 259–271, 2010. governance-in-india-1513-1.html. 18. Arthur Kendall, “Stakeholder Perceptions”, Applied Corporate 7. G.N Bajpai, “Corporate Governance: Tyranny or Triumph”, Governance, http://www.applied-corporate-governance.com/ ASCI Journal of Management, Vol.38, 2008-09. stakeholder-perceptions.html. 8. Manju Jaiswal & Ashok Banerjee, Exploring the relation 19. http://www.pcworld.com/article/250043/4_components_of_ between Earnings Management and Corporate Governance a_social_media_governance_model.html assessed 12 April, characteristics in the Indian Context. 2014. 9. B. Yerram Raju, ASCI Journal of Management, Vol.27, 1997. 20. James S. Ang, Zhiqian Jiang and Chaopeng Wu,“ Social Media 10. “Information Governance, Privacy, and Security and Corporate Governance: Acquisitions under Negative considerations for Social Media”, KPMG, 2012. reactions from Investors”,December, 2013. 11. CA. Namrata Kirit Shah, “Impact of Social Media on Capital 21. David A. Katz & Laura A. McIntosh, “Corporate Governance Market”, The Chartered Accountant, February, 2014. Update: The Board, Social Media and Regulation FD”, March, 2013. 22. Social media Governance for your workforce, KPMG, 2011. Water Management in Indian Agriculture: Issues and Strategies

Dr. V. Basil Hans*

ABSTRACT

Water the critical resource of agriculture,has not been well managed in India, despite the country being an agricultural powerhouse. It has some 195 MH of land under cultivation of which some 62 percent is rain- fed and 37 percent, irrigated. Agriculture uses 85 per cent of the water resources with low efficiency. The rain- fed area is the critical area of cultivation with the largest concentration of rural poverty spanning several agro ecological regions. Water management is related to three important challenges in the agricultural front today namely raising productivity per unit of land, reducing poverty, and responding to food security needs. In the light of the new call to achieve “more crop per drop”, this paper discusses pertinent issues related to irrigation in India and the strategies and arrangements to address water scarcity for irrigation. The study finds that problems are largely institutional, structural and administrative. Overcoming them is crucial for agricultural development in general and water management in particular.

Keywords: Agriculture, India, Management, Pani Panchayats, Water

INTRODUCTION Indian agriculture even now is heavily dependent on the monsoons. Nearly 70 per cent of the net sown area is rain- “Irrigation is everything in India; water is even more valuable dependent. Problems of Indian agriculture are intricately than land”, remarked Charles Trevelyan many years ago. The linked to per-capita availability of water in a cost-effective country is endowed with 183 million hectares of cultivable manner. This fact has to be viewed in the context of 2007 that land, 115.6 million farming families, 400 million of annual was earmarked as “Water Year” by the Government, as also the precipitation, and a conducive agro-climate for cultivating a general crisis and contemporary challenges in agricultural variety crops. About two-thirds of the country’s population sector. Even a non-farm activity like insurance is penetrating work in agriculture and feed over 1000 million people every the irrigation sector and we now have rainfall insurance and re- day. Yet majority of farmers are under the clutches of poverty, insurance in India. Demand for food is increasing but vast debt and hunger (Hans 2010: 31). Micro studies on poverty in majority of lands remain fallow during dry season. This is so in rural areas cannot keep out irrigation as an explanatory factor. more than half of the arable land (Zaman 2009:1). Water For instance Gurunathan (2008), applying linear regression problem is a triple problem - problem from supply side, from technique for estimating the strength of irrigation in side and from quality angle. determining rural poverty in the state of Tamil Nadu (for 37 years from 1964 to 2000) found that rural poverty can be By the year 2030, India needs to produce 60 per cent more rice reduced by 1.54 per cent through an increase of one hectare of with much fewer resources. To keep up the momentum of groundwater irrigation for very thousand rural population. growth, a careful economic valuation of inputs including Study by Hans (2007) in Belthangadi and Mangalore taluks of irrigation is of considerable importance (Kiran, et.al 2009:106). Dakshina Kannada District, Karnataka using chi-square The use of major resources of the earth like water has to be method revealed that as households move up from below guided by the principles of optimum and scientific utilisation, poverty line to higher income levels they are in a better position both as individual commitment and international agreement to availability and accessibility of irrigation infrastructure. In (Hans and Jayasheela 2010:4; Singh 2010:57). Despite rapid many cases, the average income per household almost doubled strides in high-tech agriculture and commercial/corporate when irrigation was fully utilised. farming, sustainable agriculture and livelihood security will be

*Associate Professor and Head, Dept. of Economics, St Aloysius Evening College, Mangaluru, Karnataka. Email: [email protected] 16 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

largely decided on the natural resource – base, use and conservation. Further, we have institutional issues like weak conservation. Availability and access to sources of water can be organisation base and delivery mechanisms for water, allied a deciding factor for employment, migration and urban inputs and extension services (Mendhekar and Chalakh, n.d., challenges too (Hans, 2014). This paper seeks to present the 6:3). problems and challenges in the waterfront for Indian agriculture. It also highlights issues that need to be addressed Challenges and Opportunities for better water management. One of the most important challenges both in waterfront and Extent and Effects food front is that of climate change. The term ‘global climate change’ refers to the rising temperature of the earth due to an Irrigated agriculture is limited only to 46 per cent of the increased amount of carbon dioxide (CO2) and other cropped area in India, but it contributes nearly 56 per cent of greenhouse gases (GHGs). The phenomenon and presence of the agricultural output, and about 60 per cent of food grains climate change has created more intensity in the uncertainty of production comes from irrigated area (Nagdev 2012:138). water availability, making it difficult to optimise actions and Efficiency or deficiency in farming is largely related to water – their timings (OECD, 2014: 46). rainfall or irrigation. It is true for productivity improvements through area expansion as well as through combined inputs Natural resources have become vulnerable. Agriculture in (irrigation, fertilisers, plant protection measures etc). Even the India is in a peculiar situation of growth with vulnerability. A entrepreneurial ability in farm operations is water-linked. No significant part of theannual variation in India’s GDP growth doubt under modern farming irrigation is one of the inputs in over the past century is attributable to yearly variations in integrated farm management. Total Factor Productivity rainfall. Rise in the sea level and depletion of potable water as criterion of farm efficiency places adequate importance on well irrigation potential are serious concerns. Estimates predict irrigation to explain variations in yields and technical that with increase in temperature by 2080-2100 the probable efficiencies across crops and across farms. For instance, a study loss in crop production is 10-40 per cent (Hans, 2011; Hans of paddy farmers in the state of Andhra Pradesh by Raju (2004) 2012:162). Green House Effect is a challenge to green revolution revealed that the non-availability of assured irrigation leads to today. low-level usage of fertilisers too and in turn, low yields. In several coastal areas of the country a new problem is rising. Irrigation Scenario Sand mining is causing the water table has gone down and due to this farmers have been increasing the horse-power of their India has irrigation potential of 139.89 hectares of which 108.3 motors, again with repercussions on cost and economic mha (i.e. about 77%) has already been utilised. The average performance of irrigation and cultivation (Selvakumar et.al, annual per-capita availability of water is estimated to be about 2008: 183). 1,829 cubic metres at the national level. This is expected to decline to about 1,341 CUM by the year 2025 and 1.140 CUM. Substantial progress in irrigation has been made through by the year 2050, owing to the increase in population. The per- programmes and policies such as Command Area capita storage capacity in India is only about 207 CUM. as Development Programme (1974-75), Accelerated Irrigation compared to 1,111 CUM in China. Out of the total water Benefits Programme (1996-97), National Water Policy (2002) supply, the share of irrigation at present is about 80 per cent. and so on. Yet the major problem in irrigation continues to be This is likely to go down to 73 per cent by 2025. the under-utilisation of potential, particularly of major and medium irrigation projects. Added to this is the sensitive issue As water is vital not only for increasing output of varied crops of user-charges. Lack of thorough knowledge of scarcity-value but also for sustainable employment and income in the of water to its user is an obstacle in its efficient use. Political agricultural sector, proper planning and management of this interferences, shortages of electricity etc are also affecting the 1 resource is very essential. Creating appropriate infrastructures working of Water (pani) Panchayats. and adopting suitable management practices will help augment the utilisable water resources and improve the Suggestions and Conclusion efficiency of the facilities. Apathy and administrative constraints are making agriculture Strategic Issues weary. A multi-pronged strategy is needed to improve water- management system and practice in India. Every farmer and Keeping in mind both utilisation and conservation aspects of farm-based organisations should implement this. Central water ‘efficiency’ parameter is the key strategic factor. Government as well as the state governments should ensure Inefficiency limits capability and reliability. While this is a and enhance incentives to invest in adaptation of new methods physical issue, we have some economic issues too. As serious of water saving, harvesting etc particularly to meet as the financial manifestations of current investment and water uncertainties of weather and global climate changes. Even the pricing policies are their deleterious economic consequences innovative “participatory public delivery system” should be on the production front. Subsidised water rates disenthuse encouraged for water management in general and farmers to opt for the tenets of water use efficiency and underground water in particular. The underlying principle Water Management in Indian Agriculture: Issues and Strategies 17

should be one of “least cost” according to the objectives of the user-level through electronic and print media. Under the effectiveness, economic efficiency and equity. As stated by the aegis of the Ministry of Water Resources, Government of India, President of India, HE Shri Pranab Mukherjee, “Strategic “India Water Week” was organised during 13th to 17th partnerships for adoption of best practices and to maximise January 2015, with the theme, “Water Management for benefits through technology transfer have become more Sustainable Development” this should trigger adequate and important today. India, which had witnessed a Green appropriate ‘ground’ level policy action to raise awareness, Revolution in the Sixties, is now moving towards an conservation and utilisation of water resources in an integrated ‘Evergreen Revolution’, recognising the positive role that manner (GoI, 2015). Similarly, PaniPanchayats that in 1972 came information technology can play as powerful catalyst for to save many famers during the severe drought in Maharashtra sustainable agricultural development. India’s strategy centres and also became very popular in Orissa should be revitalised in on the Action Plan for Information and Communication all states of India. Similarly Karnataka’s programmes such as Technology (ICT) for Agriculture, which has been operational Jal Nirmala (clean water), Jalarakshana (water protection) and since 1995.”2Technological inputs along with institutional Namma Bhumi Namma Thota (our land, our garden), Gujarat’s backing make agricultural plan successful. aquifer mapping exercise (under MGNREGA), Rajasthan’s Jal Chitra (water map) and other initiatives must bring in harmony While we need institutions to support agriculture, they must between people and the environment. There should be not be not become a burden by themselves. We may draw some any clash of interests here. Dovetailing of programmes like lessons and warnings from another economy as that of MGNREGA and the National Rural Livelihood Mission Ethiopia where the pressure of institutional policies and (NRLM) with civil society collaboration will make management styles which cause negative impact on participatory underground water management truly agricultural reforms. Ethiopia has 45 per cent of its GDP from sustainable (Likhi, 2014). agriculture and 80 per cent of its people working in agricultural sector. The Government of Ethiopia launched the growth and Strict enforcement of laws to prevent indiscriminate sand transformation plan (GTP) in 2010 that gave important role to mining, and injudicious use of electricity etc, can save a lot of the agricultural extension (AE) workers –properly trained and water without adversely affecting the crop production and remunerated – in dissemination of existing and new improved productivity. Damage control exercises should be taken up for agricultural technologies to all farmers, expansion of irrigation implementation without wasting any time. This is in the etc, acting as links between scientists and farmers. A field study interest of all resources, including labour. For instance, of this model by Haile and Abebaw (2012) found most of the enhanced land and labour productivity due to better water AEs were not adequately accessible to the farmers. About 98 management can lead to higher real wages too. Yogindra per cent of the AEs did not have public transport facility to Alagh (2011) has estimated that if land augmentation emerges reach the farms. Therefore, they spent very little time with the with success of the interrelated issues of water management, farmers. When the AEs shirked their duty agricultural plan cropping intensity can rise by 0.5 per cent annual and in the and performance suffered badly. decade 2010/2020, real wages would rise by 7 per cent additional or 27 per cent in total and rural-urban inequality The need of the hour is to promote awareness and positive would go down. attitude towards an “integrated approach to the utilisation of natural resources” – soil, water and bio-diversity. This Educating the farmers has to be at the top of the agenda of approach should not be an adhoc one. Moreover, it has to be agricultural development in general and water management in strong in its quantitative and qualitative dimensions. Irrigation particular. While IT and BT need to be promoted on a large has to be developed in terms of area coverage as well as scale, they should be made ‘farmer-friendly’. In the light of the conservation. Dissemination of time-tested technical know- recurring drinking water scarcity also in several parts of the how regarding water use, re-use and replenishment as well country, water management for both irrigation and drinking about drought and disaster management should be made purposes would receive urgent attention. Choice of techniques available eve to small and marginal farmers. Research in labs for optimisation of resources should be crystal clear to all should be dovetailed with field experiments to cater to felt- concerned. Public and private investments will have to be needs of farmers and to enrich the experiences. Knowledge stepped up for this national cause. Therefore, policies and sharing is going to be another important sub-sector in this programmes for irrigation development in the future have to scheme of things in the coming days. The Central Water be ‘focused’ on increasing per-capita availability of water; cost Ministry has – in this connection – called for active and time reductions of irrigation projects; rationalisation of participation of all stakeholders. Participatory Irrigation rates; better maintenance of works and sound management of Management (PIM) has been conceived as the thrust area in the natural resources coupled with HRD of farm-managers. effective irrigation management by involving and associating Water-saving and water-use efficiency schemes and strategies the farmers in planning, operation and maintenance of the such as Awareness campaigns on Water, Sanitation and irrigation system. So too the Irrigation Management Transfers Hygiene (WASH), Training programmes on Sustainable (IMT) Programmes which states are keen about (Mahapatra, Agriculture (SA) and Water Use Efficiency (WUE), and 2006: 1). It has already sounded on a research programme of rainwater harvesting, water recycling etc which are already farmers’ participatory action in 5000 villages to promote “more functional must be become “best practices” of all water users. It crop and income per drop” of water, training of water-masters is heartening to note that citizens’ initiates are also forthcoming in each panipanchayat and wider dissemination of know-how to in a positive way. For instance, the 'Next drop' started by Anu 18 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Sridharan as a platform between citizens and the government References has helped solve the water problems of the residents in Hubli, a town in Karnataka.3 Similar case is that of Uddhav Kedkar of 1. Alagh, Y. K. (2011), “The Future of Indian Agriculture”, The Shivni village (Maharashtra). These eco-saviours, fighting like Indian Economic Journal, 59 (1): 40-55. warriors are the change-makers, the Global Indians who have 2. Government of India (2015). India Water Week January 13 – 17, acted locally. 2015. Retrieved on July 26, 2015 from http://indiawater week.in/IB1_2015.pdf In the tsunami-hit lands of Andaman, Several NGOs (e.g. 3. Gurunathan, S. (2008), “Rural Poverty – Irrigation Nexus in Voluntary Health Association of India, Nehru Yuva Kendra, Tamil Nadu”, Journal of Global Economy, 4 (1): 76-82. Nandi foundation, Tata Institute of Social Sciences etc) actively 4. Haile, M. G. and Abebaw D. (2012). “What factors determine participated in enhancing livelihood security of the affected the time allocation agricultural extension agents on farmers' people. They took up ‘cash for work’ programme and did agricultural fields? Evidence from rural Ethiopia”, Journal of desiltation of water bodies, clearing of fields from damaged Agricultural Extension and Rural Development, 4 (10): 318- crops, strengthening of river bunds and so on. The rescue, 329. rehabilitation and reassuring measures helped agriculture to 5. Hans, V. B. (2007),Infrastructure for Rural Development - a revive (Hans, 2011). Comparative Study in Dakshina Kannada District, unpublished PhDthesis, Mangalagangothri: Mangalore University. Pro-democratic and environment-friendly systems have to be 6. Hans, V. B. (2010), Sustainable Agriculture and India - strengthened for better management of water. No doubt, many Dimensions and Directions. In: Rasure, K. A. (Ed.), Sustainable challenges lie ahead and we have choices. The most difficult Agricultural Development (pp. 28-38), Jaipur: Oxford Book. challenge is to make the best choice.Water can save us. We can 7. Hans, V. B. (2011),“Impact of Climate Change on Indian also save water. Preaching is good, but practice makes us Agriculture”, International Conference on Climate Change & perfect. Social Issues’, Toulouse Business School, France and Institute of Human Development and Training Sri Lanka (IHDT), Hosted Notes by Munasinghe Institute for Development (MIND) - Colombo Sri Lanka, December 14-15, 2011. 1. Pani in Hindi means water. Pani Panchayats are water 8. Hans, V. B. (2012), Climate Change, Variability and councils at the grassroots level viz., the villages. Pani Vulnerability - Strategies for Indian Agriculture. In: Rasure, Panachayats are in a sense water users’ associations. These K.A. (Ed.) Development of Agriculture in the Era of Climate are funded by state governments and consist of all the Change (pp. 158-168), Oxford Book Company, Jaipur. farmers within the command of a minor or sub-minor 9. Hans, V. B. (2014). “Climate Change and Indian Agriculture”, EPRA Journal of Climate and Resource Economic Review, 2 canal, or of a Lift Irrigation Point. It will have a bank (December): 62-67. account of its own. The rights and responsibilities of the 10. Hans, V. B. and Jayasheela (2010), “Environmental Pani Panchayat will be governed by an Agreement between Management and Sustainable Development in India: Issues and the Pani Panchayat and the state’s Department of Water Challenges”, Journal of Global Economy,6 (2): 3-14. Resources. 11. Jalajakshi, C.K. and Jagadish, N. (2009), “Economics of Krishik 2. Speech by His Excellency, the President of India, Shri Bandhu Drip Irrigation: An Empirical Analysis”, Agricultural Pranab Mukherjee at the inauguration of the Asia-Africa Economics Research Review, 22(1): 161-167. Agri-Business Forum, 05-February-2014. Reproduced in 12. Kiran K. P., Jayasheela and Hans, V. B. (2009), “Indian “Food Security: Asia-Africa Agribusiness Partnership”, Agriculture: Crisis and Challenges under Globalisation”, Social The African Executive, Issue 461, 19-26 February, 2014. Action, 59 (1): 106-115. 3. Next-Drop provides ICT infrastructure as a cost effective 13. Likhi, A. (2014), “Development Challenges for Participatory way to manage and monitor water distribution systems. It Public Delivery of Underground Water in Rural India”, has an Interactive Voice Response system (IVR). The data Retrieved on August 1, 2014 from http://blogs.worldbank.org/ is processed through backend technology. The publicsphere/development-challenges-participatory-public- information is disseminated to citizens and utility delivery-underground-water-rural-india decision-makers in real time. Residents receive text 14. Mahapatra, S. K. (2006), “Functioning of Water Users messages with the date and time when water will arrive. Associations or Pani Panchayat in Orissa”, Paper for the Engineers receive reports when water delivery is delayed. workshop, ‘Water, Law and the Commons’ organised in Delhi, All of this is in real time using basic handset phones. Its December 8-10, 2006, International Environmental Law Co-Founder/Chief Executive Officer Anu Sridharan, was Research Centre (IELRC) & Swiss National Science Foundation recently selected to the Forbes "30 Social Entrepreneurs (SNF). Retrieved on February 16, 2014 from Under 30" list for her work with Next Drop Inc. holds a http://www.ielrc.org/activities/workshop_0612/content/d0609. While at the University of California, Berkeley Anu’s pdf research focused on the optimisation of piped networked 15. Mendhekar, S.M. and Chalakh, M. L. (n.d.),“Irrigation systems in developing economies. Next-Drop is now a Development – Problems and Strategies”, NABARD Technical movement in urban India. Digest, Issue 6: 1-4. Retrieved on February 20 from https://www.nabard.org/pdf/issue6td-8.pdf Water Management in Indian Agriculture: Issues and Strategies 19

16. Nagdev, D. A. (2012), The Effect of an Irrigation Project on 20. Selvakumar, R., Venkataraman, R., and Sundaravaradarajan, Agricultural Productivity of Rural Maharashtra. In: Rasure, K. K. R. (2008), “Effect of Sand Mining on Economic Performance A. (Ed.), Development of Agriculture in the Era of Climate of Groundwater Irrigation in Cuddalore District of Tamil Change (pp 138-152), Jaipur: Oxford Book Company. Nadu”, Agricultural Economics Research Review, 21 (2): 183- 17. OECD (2014), “Climate change adaptationand mitigation 190. strategies for agricultural water management”. In: Climate 21. Singh, J.P. and Das, A. (n.d.), Agriculture, Alternative Survey Change, Water and Agriculture: TowardsResilient Systems, 1991-1998 Seven Years of Structural Adjustment, Delhi: OECD Publishing, http://dx.doi.org/10.1787/9789264209138- Rainbow Publishers Limited. 4-en 22. Singh, S. (2010), “Comparative Study of Common Guidelines 18. Parris, K. (2010), “Water in agriculture: Improving resource for Watershed Development Programme in India”, Journal of management”, OECD Observer, 278: 29-30. Global Economy,6(2): 57-68. 19. Raju, D. S. R. (2004), “Technical Efficiency of Paddy Farmers in 23. Zaman, A. (2009), Integrated Water Resources Management Andhra Pradesh - A Stochastic Frontier Production Approach for Agricultural Sustainability and Food Security. Proceedings, with Panel Data”, The ICFAI Journal of Agricultural National Seminar on Food Security and Sustainability in India Economics, 1(3): 7-18. (pp. 268-275), Amritsar: GAD Institute of Development Studies. After Sale Services: An Important Aspect in Two Wheeler Automobile Industry

Mohd. Nasir*

ABSTRACT

In this modern competitive environment, getting new customer is not only important but to keep existing consumers satisfy and retain them is also essential. To grow business do not only need to attract new customer but also to hold on existing consumers.

The two wheeler industry has been going steadily over the years all over the world. India is not an exception for that. Today India is the second largest manufactures of two wheelers in the world. Today the customer preferences have shifted from geared scooters to motorcycles and also to an extent to the premium end scooters. Currently most companies in the industry generates the largest portion of profit from after sales (maintenance services and sale of spare parts). Researches suggests and also approves that servicing of vehicles are the links between profits for companies and customer satisfaction.

After sale services is an important tool to differentiate one’s product from other one in the automobile Industry. Good After sale services are the heart of automobile business success. It helps companies to gain & retain customers. It helps in two wheeler automobile to increase sales, productivity and develop positive word of mouth by effectively providing after sales service facility as and when needed by consumers.

It helps the business to get associated with their consumers even after sale of their product, which helps to develop and modify products that best fit with the present need & requirement of the existing & future customers.

This paper attempt to highlights the effectiveness of the After sale services facility in two wheeler automobile sector in India.

Keywords: After sale service, Two Wheeler, Automobile, Service Quality, word of mouth

INTRODUCTION As per the data of automobile industry, authorized service outlets account a maximum of 40 percent of the after sales and To succeed in modern competitive environment, businesses service business market share. The vehicle servicing industry is need customers for their products and services. Without estimated to be worth at Indian rupees twenty thousand crore, customers a business would not be able to exist. Peter Drucker this could rise to twenty seven thousand crore rupees by the has rightly said,“ The purpose of a business is to create year 2015. This results a huge market for servicing of Two- customers.” Businesses need to attract the new customers as wheeler. About fifty six million two-wheelers are there on well as retain existing one. Indian roads.

Automobile is considered as a leading industries in global In the present competitive scenario the automobile sector market and is considered as the “industry of industries”. It has especially the Two Wheeler sector is growing exponentially, been observed that two wheeler segment in India has this will result a huge market for maintenance of Two wheeler. registered significant growth during the last two decades. An Today the companies have realized the importance of having extension of this growth has been that there has been an the authorized after sale service network. enormous growth in demand for the sector that offers after sales service to this segment.

*research Scholar, Deptt of Commerce & Business Management, University of Allahabad. Email: [email protected] After Sale Services: An Important Aspect in Two Wheeler Automobile Industry 21

According to Kotler (1997), product support services are and New, 2001). “After-sales services” are often (Lele and increasingly becoming an area for competitive advantage. Karmarkar, 1983) referred to as “product support activities”, Some companies already make more than half of their profits in meaning, all activities that support the product centric product support services. The customer is most concerned transaction. The after-sales service constitutes a means to about an interruption in the service that they expect from the uncover customer needs and a strategic driver for customer product and their worries can be specified into three areas: retention. It represents, in fact, “one of the few constant reliability, service dependability, and maintenance. In order to connections that customers have with a brand” (Gallagher et provide the most effective support, a supplier must identify the al., 2005), influencing customer satisfaction and loyalty. services that customers value most and their relative Finally, after-sales service is away to allow a continuous importance (Lele and Karmarkar,1983, Lele, 1986). improvement of product design and quality (Armistead and Clark, 1992; Cohen and Whang, 1997; Thoben et al., 2001). The Biswajit Mahanty and Virupaxi Bagodi (2006) The success of perception of after-sales as a source of competitive advantage two wheeler manufacturers in India depends on the and business opportunity requires a shift from a traditional competitive advantage gained by them through after sales product-centric view, in which after-sales is considered a service and providing and maintaining customer satisfaction “necessary evil” (Lele, 1997) to customer-centric view. in the face of rapid changes in technology is a difficult task, Furthermore, the term “after-sales services” has been which can be overcome by timely addition of capacity and approached in the literature under two broad perspectives. upgrading of technical manpower and focusing on the CRM When referring to service providing companies, after-sales programs. services are being treated as one among several supplementary service elements provided by them (Oliva and Kallenberg, After sales service has become an important marketing tool for 2003). On the other hand, when referring to tangible goods, the manufacturing industry globally. A rapidly changing they are mostly seen as operative activities of some, or all business environment, increased use of technology, higher members of the distribution chain (Gaiardelli et al., 2007). Such market competition, and higher potential profits in after sales services are the transport/delivery to clients, the installation, service has changed the way companies view after sales the product-related training, the hot line and advice by the help services (Muhammad et al, 2011). desk, any repairing service and even the recycling process.

After sales services include maintenance, repair, and After-sale services may involve awide range of services that are upgrading. If these services can be offered ata fixed or provided in support of the sale of products, such as product guaranteed rate, they could be a significant competitive maintenance, repairs, guarantee, extended warranty, and advantage. In maintenance, it is to be remembered that one replacement parts services. After-saleservices offer many way of solving the repair problem is to have defect-free potential benefits. They create new recurring revenue streams, products and then service can be bundled into the product offer new sources of differentiation and stand to offer a counter price, which can also be of strategic value (Rothschild,1984). force to the slippery slope of commoditization that is so pervasive today in automobile industry. Thus raising revenues After-sales service has emerged as a major source of from after-sale services ought to be at the top of the competitive maneuvering, so firms strive for competitive management agenda for companies in automobile industry. advantages with their after-sales service portfolio to The recent trends in the business of after sales service shows differentiate offers from competitors (Goffin, 1994; Slater, 1996; that the business has increased in volume and has become the as cited in Ruben, 2012). Saccani, et al., (2007) defined after-sales largest contributor to profit of the company. Various research service for manufactured goods as the set of activities taking has highlighted that the after sales services business is not only place after the purchase of the product, devoted to supporting growing in volume but also in terms of revenue and it is now customers in the usage and disposal of goods. that the two wheeler companies have started considering after sales service business a profit center. Rigopoulou, et al., (2008) described after-sales services as services that are provided to the customer after the products A key driver for companies to offer after sales service is the have been delivered. After sales service as those activities that realization of the total cost of ownership and use of modern enhance or facilitate the role and use of the product. After-sales technology. At present the technologically complex and services are an important marketplace differentiator because advanced automobiles are manufactured, this indicates that primary products are often physically comparable (Rubin, the maintenance and after sales service needs of such vehicles 2012). is a challenging task as it is not feasible for the most of the users to perform the maintenance themselves as it is not As a term, “after-sales services” has been used themost, to economically feasible. describe services that are provided to the customer after the products have been delivered(Vitasek, 2005). The same According to Rubin (2012) after sale services is the sum of services are sometimes also called “field services”, when they activities taking place after the purchase of product which: are embodied in the main characteristics that are located at a • Ensure that the product will available for trouble -free use customer’s site (Simmons, 2001). “After-sales support” over its useful life span & guarantee the continuous (Agnihothri et al.,2002) as well as “technical support” or even availability of goods (preventive maintenance). just“services”, are terms also found in the literature (Goffin 22 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

• Replace failed product in the timely and cost effective categories (Cohen et al., 2006; Cohen and Whang, 1997). Hence, manner (reactive maintenance). on one hand, offering a large number of extra after-sales service • Create competitive advantage for the customer (value plans to consumers ,leads to higher profitability. Recent added services). marketing management focuses on lifetime value of a customer and maintaining long-term relationships with While going through the automobile services, we focus on the customers(Gupta and Lehmann, 2007). services offered by the automobile service stations. With the increasing number of two wheeler automobile, that comprises Shuqin w. & Gang L conducted an empirical study on the of around more than 75% of the Indian automobile industry, relationship between after sales service qualities in China we find good auguries for marketing the automobile services. Automobile sector and they found that fairness, empathy, They need to offer quality services to the user in addition to the reliability and convenience have significant positive impact on formulation of a package that adds attraction to the service customer satisfaction while responsiveness doesn’t have a mix. They are required to promote their services but are not significant impact on customer satisfaction and at the same supposed to undermine the financial constraints. The market is time satisfaction has a significant positive impact on trust and to be made competitive and therefore they also need to adopt a trust has a significant positive impact on commitment. They rational policy for pricing the services. The processing of also found satisfaction and commitment both have a services requires due attention of the professionals so that we significant positive impact on relationship value but trust do not find any distortion in the process of offering. cannot impact relationship value directly.

Mr. Subhadip Roy (2006) SR Mahnot (2002), In his study of two From this customer-relationship viewpoint, after-sale service and three wheeler he out from the standpoint of means of is regarded as an important factor that has an impact on personal transportation. The two wheeler has become an establishing good relationships with customers. On the other expression of the owner’s personality. The customer (in hand, a default and free basic after-sale service, also plays an making his choice does evaluate the product in terms of utility , important role in attracting more customer attention in a fuel economy, reliability, maintenance, affordability market with severe brand competition (Chien, 2005). Offering performance, good after sale service at reasonable cost, adequate after-sale service to customers has become a major availability of spare parts at economical prices, looks, safety generator of revenue, profit, and competency in modern and comfort and ease of riding for driving. industries (Cohen et al., 2006; Cohen and Kunreuther, 2007). Accepting the claim that returning customers are the most The performance delivery by the service firms at each level profitable ones, as they require less marketing effort and influences the customer satisfaction whose measurement is relationship building, after-sales service acquires a critical role based on expectancy-disconfirmation paradigm on post- as a means to achieve customer importance. purchase usage and experience. From this customer-relationship viewpoint, after-salesservice After Sale Service & Customer Satisfaction is regarded as an important factor that has an impact on establishing good relationships with customers. On the other The objectives of the marketers have shifted from hand, a default and free basic after-salesservice, also plays an “maximization of profits”to “maximization of customer important role in attracting more customer attention in a satisfaction”. Business firms not only retain their current market with severe brand competition (Chien, 2005). Offering customers, but also increased their market share by satisfying adequate after-salesservice to customers has become a major customers through high quality after sales service. After sales generator of revenue, profit, and competency in modern service availability is a critical deciding factor while choosing industries (Cohen et al., 2006; Cohen and Kunreuther, 2007). an automobile. After sales service operations have been very Accepting the claim that returning customers are the most crucial in the automobile business and the vehicle servicing profitable ones, as they require less marketing effort and business in India undergoing a transformation. Steps in the relationship building, after-sales service acquires a critical role direction of formation of chain of organized workshops with as a means to achieve customer satisfaction and retention skilled work force are in progress that is likely to bring (Alexander et al., 2002). revolution in the nature of the vehicle servicing market. After Sale Service & Revenue Generation According to Jones and Sasser (1995), four basic elements affect customer satisfaction. They are: the basic elements of the After sale service was considered to be the cost center unit in an product or service, basic support services, a recovery process organization as now it considered to be the profit center unit. for counteracting bad experiences, and extraordinary service. With the changing trends in two wheeler automobile industry There are many definitions of the key elements of the services, like from scooter to bike & now more premium segment bike but this one is considered appropriate in the context of care or are in trend, has shaped the importance of having effective & after sales services. authorized after sale service center of the various companies. As the day by day the two wheeler vehicle becoming more It is well known that the margin from after-sales service is technological oriented features, more sophisticated features much larger than that from the product. That is, after sale has also make the consumers to think to have proper servicing service is considered a key revenue generator in certain of their vehicle. After Sale Services: An Important Aspect in Two Wheeler Automobile Industry 23

Not only this in the after sale service market in India , Horelli (2000) claims that the Internet will make the price automobile service has significant share and also with the competition between different car dealers in USA even more increasing demand of passenger vehicle day by day specially intense and that this will force the dealers to find more efficient the Two Wheeler, itself creating a huge opportunity for ways of making profits. After sales car services, and other business which is still has not been exploited, and can be a ownership services are seen as a means of maintaining good source of revenue generation for many automobile profitability. companies in India. Steve Kahl and Fernaando Suarez (2008) in their research Michael Cusumano, Steve Kahl and Fernaando Suarez (2008) paper “Product, Process, and Service: A New Industry in their research paper “A theory of services in product Lifecycle Model”, has concluded that Existing models of industries”, has concluded that in many product oriented industry lifecycle evolution tend to focus on changes in the industries, services have become increasingly important. In products and processes and largely over look the dynamics of case of automobiles, many automakers generate the vast services, but increasingly, the revenues of many firms are majority of their profits from a service activity closely tied to becoming dominated by sales of services rather than products, their product activity. The automobile industry overall or products sold with services to gain competitive generates a large portion of its profits from other product- differentiation in markets marked by increasing product relate service activities such as insurance and repairs. The commoditization. authors argued that despite the seeming importance of services, there is not much theory to help researchers or V.G. Ramakrishnan (2003) The two-wheeler market that has practitioners explain the conditions under which services seen an explosive rise in sales over the last few years which matter in product industries. The general view that emerges created an opportunity for various companies to enter the after from the services literature is that services tend to become sales business of two wheeler, Castrol, a company well known important for manufacturing firms once their industries reach for its lubricants, has entered into the motorcycle servicing a mature stage. business with the roll out of its first workshop 'Castrol PrimaZona' and have plans to have pan India presence. Arvind Saxena (2010) Director and Board member (marketing and sales), Hyundai Motor India (HMIL) “No company in After Sale Sevice & Service Quality automobile sector can fight competition on price. Companies need to have the right product, distribution, CRM and after Role of service quality is widely recognized as being critical sales service network to grow. determinant for the success of an organization in today's competitive environment. Any decline in customer satisfaction Mona J Fitzsimmons (2010) has concluded that the due to poor service quality would be a matter of concern. profitability of automobile manufacturers depends on Consumers being more aware of rising standards in service, exploiting value added services for instance automobile prompted by competitive trends, have developed higher manufacturers have discovered that financing and after sales expectations. In other words, service quality aspects possess a service can achieve significant profits. substantial strategic role for companies. This does not happen only in the pure service sectors, but also in many others where Steve Kahl and Fernaando Suarez (2008) in their research service is a considerable part of the augmented product. paper “Product, Process, and Service: A New Industry Indeed,the concept of “service quality” can be used by all Lifecycle Model”, has concluded that Existing models of sectors, since practically everywhere, the total product offering industry lifecycle evolution tend to focus on changes in the is a mixture comprised of tangible and intangible part products and processes and largely over look the dynamics of (Shostack, 1977). services, but increasingly, the revenues of many firms are becoming dominated by sales of services rather than products, Grönroos (1984) proposed the concept of service quality or products sold with services to gain competitive whereby service quality consists of two dimensions: technical differentiation in markets marked by increasing product quality which is the quality of what is delivered; e.g. the quality commoditization. and effectiveness of loan procedures of the bank, and functional quality, which is the quality of how the service is V.G. Ramakrishnan (2003) The vehicle servicing business in delivered - the care and manners of the delivery personnel. India is undergoing atransformation. In early days, the Meanwhile, Fornell et al. (1996) defined two types of perceived servicing needs of the vehicles were undertaken mostly by quality, which are product quality and service quality. roadside mechanics and a few organized workshops. Perceived product quality is the evaluation of recent Companies need to focus on building a chain of authorized consumption experience of products while perceived service service stations covering the entire country to service its quality is the evaluation of recent consumption experience of vehicles. As the competition in the market has intensified and associated service like customer service, conditions of product profit margins squeezed, companies need to view servicing as display, and the range of services and products. This study a money spinner for the entire operation. In the recent years, focuses on perceived service quality because the industry other players have entered in the field and the creation of selected in this paradigm, i.e. banking industry, is a service national chain of organized workshops is underway and that is industry (Levesque and McDougall, 1996). likely to change the nature of vehicle servicing market in India. 24 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Delivery of high service quality to customers offers businesses advantage in the marketplace. Satisfying customers is one of an opportunity to differentiate themselves in competitive the main objectives of every business as it can result in markets (Yavas and Benkenstein, 2007). Service quality seems increasing the company’s income and they are more likely to to lead to positive word-of mouth, lessening of complaint purchase additional products and services and often generate tendencies and continuity in bank-customer relationship new businesses for the companies through word-of-mouth (Caruana, 2002). Levesque and McDougall (1996) stated that recommendation. high service quality results in customer satisfaction and loyalty, greater willingness to recommend to someone else, Customer in today’s environment for two wheeler vehicle are reduction in complaints and improved customer retention mostly youngster which prefer more premium segments bikes rates. Research by Cronin and Taylor (1992) validated prior which comprises of more sophisticated features and they are research indicating that perceived service quality is an more conscious about their vehicle performance and routine antecedent of customer satisfaction (Parasuraman, 1988; service of their vehicle at authorized service station, where Parasuraman et al., 1985; Woodside et al., 1989). If clients‘ making the consumer satisfy or delight is a key opportunity evaluations of past service quality is high, they will tend to for every automobile company. evaluate the most recent service encounter as satisfactory. Based on Cronin and Taylor‘s (1992) asserted service quality The more effectively a business can deliver a service quality to was the antecedent of consumer satisfaction when the its customer, the more profitable it would be for the examined four service industries of banking, pest control, dry- organization. The core of good after sale service is the right cleaning, and fast food to investigate the relation of service people executing the right process, using the best possible tools quality to consumer satisfaction .This is study then proposes at their disposal. And these days the best tools means service the impact of perceived service quality on customer quality that support the relationships between companies and satisfaction. clients.

Objectives of After Sale Services To conclude, after sale service is more of practical approach in which execution phase is the heart of complete process, if it • To provide good service quality: One of the main would performed with care and attention, it will have a objective of after sale services is to deliver a good service positive effect on automobile organization. In service it is the quality to consumer which help them to enjoy core customer who decide the quality and human side of is a key to product benefits throughout its life. deliver quality (Katarne and Sharma) 2010. • To maintain long term customer Relationship: It help to build and maintain a relationship with your customer, so References that you know their current and future needs and can incorporate trends into your strategy. 1. Samaan Almsalaam: “The Effects of Customers Expectation and • To augment customer retention and satisfaction: One of Perceived Service Quality on Customer Satisfaction”, the primary objectives of after sale service is to maximize International Journal of Business & Management Invention, the satisfaction level through meeting the customer vol.3, Issue 8, Aug 2014. expectation effectively. And by meeting their expectation 2. Dr. Gurvishal Sinha: “An Empirical Study of Customer make them delight & satisfy. Perception of Service w.s.r to Car Servicing”, International • To increase profit and revenue: After sale services now a Journal of research & Development In Technology & days do not consider as a cost center any more, instead its Management Science, vol.21, Issue 2, June 2014. consider to be a profit center unit. Many automobile 3. Mr. Pranay Verma & Dr. Ashish Kumar Shukla: “Customer companies are now focusing it to make a good amount of relationship management: An Essential Practice”, UTTHAN- revenue through this. The Journal of Management Sciences, vol.1, No.1, Aug 2013. • To bring positive word of mouth (PWOM): The best form 4. Mr. M. Satish & A. Pughazehndi: “A Study of Consumer of advertising is still word of mouth, more the customer Behaviour of Automobile Products w.s.r to two Wheeler in happy with the service more will be the positive word of Trinuveli City-Tamilnadu”, Indian Journal of Applied mouth. Which the most powerful source of advertisement Research, Management, vol.1, Issue.3,December 2011. which play an important role during purchase decision. 5. Alireza fazlzadeh, Fatemeh Bagherzadeh, & Pegah Mohamadi: “How after Sale Service Quality dimensions affect customer Conclusion Satisfaction”, African journal of Business Management, vol.5 (17), sep 2011. 6. K. Maran & V. Anbazahagan: “Analysis of User’s satisfaction The importance of the service sector has sharply increased in on two Wheeler Segment Performance with Reference to the countries in today’s high competitive global market. The Chennai”, Proceeding on International Conference on expectations and demands of the public are increasing day by Contemporary Management, 2014 (ICCM-2014). day. Normal infrastructure and processes fall short in fulfilling 7. Mohd. Talha Khan & R.S. Jadoun: “Evaluation of Service those expectations and demands. As a result of which service Quality in two Wheeler Automobile Industries using Survequel sector is going through revolutionary change, which affects the Model”, International Journal of Innovative Research in way in which we live and work. Now, service becomes one of Science, Engineering & Technology, vol.4, Issue.5, May2015. the most important elements for gaining a competitive After Sale Services: An Important Aspect in Two Wheeler Automobile Industry 25

8. Dr. Duggani Yuvaraju & Prof S. Durga Rao: Customer Conference on Mechanical Engineering & Material Science, vol Satisfaction Towards Honda Two Wheelers: A case Study in 10, no 2. Trupati, IOSR- Journal of Business & Management vol.16, 10. Heikki Koskela: “Customer satisfaction and Loyalty in After sale Issue.5, ver1, May 2014. Service, Helsinki University of Technology, Finland. 9. Shuqin W & Gang L. “An Empirical study of After sale service 11. S.M.JHA: Services Marketing Himalayan Publishing House, Relationship in China’s Auto Industry, International Edition-2002. Influence of Technical Parameter on Preference of Potential Customers towards Compact SUV

Dr. S.S. Jasial*

ABSTRACT

Automobile Sector is becoming more standardized every time. So the level of competition in each segment is increasing every day. With the perpetually changing needs of clients and propelled innovation thumping the entryway sometimes, an idea of 'minimized SUV' has landed in India. Cultural, Social, Personal, Technical, and Psychological aspects impact purchasing decision of customers and lead to selection or rejection of a product by them. Majority of these variables can't be specifically controlled by companies, comprehension of their effect is vital as showcasing the product to the target market. This study discusses models of compact SUV launched in Indian automobile market and analyse the features of each option. It also discuss about the customer preference in the compact SUV segment and also suggest the different features that customers are looking for in the cars and a rating for each features that companies can use for the targeted segment. The findings highlight that Indian customers are looking for the best of both i.e. high utility and highly practical vehicle in the compact SUV segment.

INTRODUCTION International trade in automobile sector is a very prominent. India is also an emerging market because of the low cost of The automotive industry in India is the sixth largest labour. Indian automobile has big demands from India. This automotive markets in the world. India recently overtook makes giant automobile suppliers throughout the world to Brazil, United Kingdom, Italy, Canada, Mexico, Russia, Spain, come in to the market and invest in the Indian automotive France which are more mature automotive markets. From 2011 industry. Government has also contributed to the growth of the to 2012 the industry grew 16-18%. India is Asia's fourth largest sector by reducing the norms for FDI. They have also helped by exporter of passenger cars, behind Japan, South Korea, and bringing of new and improved technology. This has highly Thailand. The Indian car market has had a steady growth rate benefited the automobile sector to a great extent. The sharp in that time period. It is one of the most rapidly changing increase in the exports of automobile sector is majorly due to business sectors in the world. The automobile manufacturing the adaptation and implementation of international standards industry is changing with customers’ needs for changes. and quality. The leading local automobile firms have Changes like style, safety, and comfort are the most prominent. established numerous technical cooperation agreements with This sector is at a transition fast phase with global mergers and leading foreign automobile companies to reach international relocation of manufacturing centres to emerging countries. It standards in cost and manufacturing for their products. The plays a major role in developing transport and industrial sector over-capacity problem is one of the major problems. And this thus promoting growth. This help to generate high has been troubling the industry for a long time as demand will employment opportunities in the country. The contribution of not grow at the same phase ad supply capacity. So many automobile sector is very high in exports and imports figures of companies are searching for external market for Indian a country. Automobile Sector is becoming more standardized automobiles. every time. So the level of competition in each segment is increasing every day. Thus production centres of major The classification of segment (http://www.indiamarks.com/) automobile companies are shifting from the developed is done on the basis of the length of the vehicle (Passenger car countries to developing countries because many advantages, segment) majorly like low cost of labour and production. A1 Segment - Mini - Up to 3400mm (M800, Nano) A2 Segment - Compact - 3401 to 4000mm (Alto, wagon r, Zen, A star, Swift, i20, palio, indica, i-10 etc)

*Assistant Professor, Amity Business School Influence of Technical Parameter on Preference of Potential Customers towards Compact SUV 27

A3 Segment - Midsize - 4001 to 4500mm (City, Sx4, Dzire, SX4 S- Cross will be given another 1.3-liter diesel and 1.4-liter Logan, Accent, Fiesta, Verna etc) petrol motor. This vehicle has as of now been dispatched in the A4 Segment - Executive - 4501 to 4700mm (Corolla, civic, C European market and takes its outline signs from out-staged class, Optra, Octavia etc) SX4 car. A5 Segment - Premiun - 4701 to 5000mm (Camry, E class, Accord, Sonata, Laura, Superb etc) Mahindra S101 - The biggest utility vehicle producer of the A6 Segment - Luxury - Above 5000mm (Mercedes S class, 5 nation, Mahindra & Mahindra is likewise outfitted to dispatch series etc) new SUVs in India as it would like to impart its matchless B1 Segment - Van - Omni, Versa, Magic etc. quality to different contenders. While two new minimized B2 Segment - MUV/MPV - Innova, Tavera, Sumo etc. SUVs and patched up Bolero are as of now under testing stage, SUV Segment - CRV, Vitara etc. carmaker is practically prepared to dispatch a sub 4 meter SUV – S101 in the business. Controlled by the same Quanto's 1.5- With entry of new vehicles from the basic four wheeler models liter 3-barrel diesel motor, the up and coming conservative to stylish, featured sedans in Indian market, more segments are SUV will be set beneath Bolero in Mahindra's portfolio. It will emerging therein. According to Paul, M (2003) people in the be the second vehicle after XUV 500 being based on Mahindra's markets has started classifying cars as B+, C+ etc. and auto monocoque structure. This will be the littlest auto in experts are expecting these classifications to get recognized Mahindra's portfolio soon. Hyundai ix25 - The Korean auto monster is getting a charge out Compact SUV Segement of achievement in India with its most recent items Elite i20, Grand i10 and Xcent which are gathering great deals number Without a doubt, SUVs have been favored decisions for the and acclaims all around. What's more, now the organization greater part of the auto darlings the nation over and the wishes to put a fitting SUV in its lineup, however it is the spied individuals who wish to ride a vehicle that has driving through Elite i20 Cross. This SUV will be dedicated as ix25 and will get rough terrain ability and in addition manly looks, these its energy from the same motor line-ups working in the engine cumbersome autos come as a gift to them. With the perpetually of Verna car. However, the up and coming Hyundai SUV is not changing needs of clients and propelled innovation thumping less than 4 meter long, it is outlined deliberately by the the entryway sometimes, an idea of 'minimized SUV' has carmaker with the goal that it can be placed in lower value landed in India. Renault Duster is the pioneer of this fragment section. The extent that looks are concerned, it will look like in the Indian market which gave clients really interesting littler Santa Fe based on the new Fluidic Sculpture Design 2.0. knowledge about autos. What's more, when Ford dispatched EcoSport, it made everybody go insane for greater autos. From Tata Nexon - When all the carmakers are attempting their that point forward the picture of SUVs in the nation has fortunes in minimal SUV section, Tata Motors can't sit and changed. Presently individuals need an auto that resembles a unwind. The carmaker is headed to dispatch a hybrid Tata Sports Utility Vehicle and conveys a low sticker and all these Nexon in India. The up and coming vehicle is based on the wishes get settled down to a minimized SUV. Also, if the SUV same stage on which Vista car and forthcoming Bolt bring forth measures under 4 meter, it brings advantages to the carmaker has been made. Mechanically as well, the auto will get the same too. Revetron petrol motor that powers Zest and Bolt alongside a diesel motor choice. Different autos that will likewise make To total up the entire mathematical statement, now carmakers their vicinity in minimal SUV section are Chevrolet Adra and have well comprehended the wishes of auto purchasers. While Volkswagen Taigun. While the VW vehicle will quantify under huge numbers of them have even dispatched their rough 4-meter length, there are no points of interest accessible for the hatchbacks to look like smaller SUVs, some of them are in Chevy Adra. methodology to present one such vehicle in their Indian line up. Volkswagen Polo Cross, Toyota Etios Cross and the most Cultural, Social, Personal, Technical, and Psychological recent Fiat Avventura are the illustration of lid based smaller aspects impact purchasing decision of customers and lead to SUVs/Crossovers and soon Hyundai i20 Cross is likewise selection or rejection of a product by them. Majority of these going to include the rundown. variables can't be specifically controlled by companies, comprehension of their effect is vital as showcasing the Following are the new models of vehicles that are soon to turn product to the target market. A customer may not act in into a piece of Indian reduced SUVs/Crossovers section. separation in the buy, but instead may be affected by any of a few individuals in different parts of his contact. Customer’s Maruti Suzuki SX4 S-Cross - After tasting achievement in purchaser method and the subsequent buy choice are heavily hatchback, vehicle and MPV portion, the biggest traveler impacted by social, individual and mental qualities. A carmaker of the nation now wishes to attack into Indian comprehension of the impact of these components is vital for minimized SUV section with the dispatch of Maruti Suzuki SX4 advertisers keeping in mind the end goal to create suitable S - Cross. The up and coming auto has been gotten on lenses advertising blends to engage the target client. commonly while being tried, so it is really pass that the auto will advance to India in the progressing year. Mechanically, 28 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Review of Literature already working on the S101 compact SUV, and Renault is also working on a similar vehicle. If Maruti and Hyundai also jump Becker, D., & Nagporewalla, Y., (2010), Managing partner and into the fray, it would only further boost sales and make prices global head of automotive reported that the Indian automotive more competitive. industry has changed. From the crisis of global recession it has emerged with better sales which have increased with better In an article, Goerge, A. (2014) stated that “Over the next four- figures than the past. But the industry has a long way to go in five years there would be emergence of compact SUV segment different aspects, both in exports and domestic sales. The and the percentage share of compact sedan segment will come industry has to overcome a lot of setbacks. The sector has to down. The compact SUV will become more popular and we concentrate more on green vehicles and new technology to will see many new launches in compact SUV segment going capitalize on the new opportunities and make good use of it. ahead.” The industry has to improve their technical capabilities and to adapt to the new market. The study is conducted to learn about the acceptance of compact utility vehicles in the Indian market and the level of A study (Prasad, A., et. al. 2013) highlighted that Indian technical details Indian customers look in to the cars in the consumers look for price and brand more than mileage. Ease of market. In the last few years the Indian automotive market has use and features at less cost are making urban professionals to witnessed the entry of compact utility vehicles from most of the prefer compact SUVs and hatchbacks in India. Affordability, leading manufacturers. And most of the Compact SUVs have serviceability, and spares cost (Shende, V., 2014) is the main got the attention of the customers and have been performing factors that divide customers of economy and high end SUVs. relatively very good (Mahindra Scorpio sold 5600 units last The main driving factor SUV segment is road presence, year while Duster sold 4500, Ford Eco Sport 4000 unit and egocentric relationship, and fun. Customers’ perception Mahindra XUV sold 3500 units). towards SUVs in India is that it has high level of safety and stylish exterior looks. The other part of the study is to check the technical knowledge of the Indian customers in the cars they buy. When learning Sports Utility Vehicle and Multi utility Vehicles are now about the automobile markets around the world European, picking up and are leading a new trend in the Indian passenger German and American customers are very specific about car market. Regardless of their huge size, they are considered technical details. Where the Americans like to have more to be very powerful, and economical. It was in the early days powers and bigger engines, European customers are when the customers had the image of considering a drive concerned about the technical aspect of the cars and how they comfort in an off road vehicle was a vibrating engine and a hard function. But in Indian automotive industry none of the ride. With SUVs now available at low price range, sports utility manufactures talk about the technical details but only about vehicles and multi-utility vehicles (MUV) are of late are being the features of the cars. In the study the technical knowledge of preferred by the middle class customers. Society of Indian the Indian customers in the automobiles are also checked. So Automobile Manufacturers (SIAM) reported that, passenger it’s important for the manufacturers to know the needs of the cars grew by 2.19 per cent in 2011-12 while the Utility Vehicles customers and to deliver according. This study is a comparison grew by 16.47 per cent in the same time period. The UV between the features, the segment is offering. segment accounted for 14 per cent of the total passenger car sales in the country (Dani, V., & Pabalkar, V., 2013) Objectives: • To identify technical factors that can influence customer’s Integration of world economies, changes in lifestyle, and preference towards passenger cars. globalisation has made it difficult to understand the behaviour • To study these factors in the compact SUV segment in and needs of existing generation customers (Saxena, A., 2014). Delhi NCR This difficulty has caused radical changes in India passenger car market. Diverse expectations makes preference of the A questionnaire was prepared based on the technical factors to individuals, therefore, companies has fear of losing customers measure perception of potential customers of the SUV brand loyalty. Segmentation of new generation consumers is segment. The questionnaire consisted of eight main difficult until companies understand their thought process and statements, of which some were further divided into parts. buying behaviour. Prediction of market demand is dependent These statements were on nominal and ordinal scale. The on understanding of consumer buying behaviour preferences. questionnaire was administered to 100 potential customers of SUVs at Delhi and NCR. The respondents were selected with The Study due care, such that they are well acquainted with technology Indian Hatchback (Gupta, N.S., 2014) sales shrink by 45% and and also has the purchasing power to experiment with such the entry level sedan witnesses’ 55% growth over the last few technology. Other than this, such individuals also have fairly years. However, things aren't foreseen as staying rosy for this good idea where they would go to purchase a particular type of segment of cars in mid- and long-term and a new product which varies according to the product. segment could grow rapidly over the next five years. The growth of sedans has jumped over the last 4-5 years as the Analysis and Findings global carmakers have jumped into the fray to produce sub-4 metre long cars. He pointed to the fact that Mahindra was Results of the survey are described in the following table. Influence of Technical Parameter on Preference of Potential Customers towards Compact SUV 29

Table 1: Frequency Distribution of the responses

Question Responses Do you own a car Yes No 81 19 What type of Car do A- B- B+ - Sedan MPV SUV Compact you own? Segment Segment Segment - SUV 9 9 47 14 14 7

What type of car you A- B- B+ - Sedan MPV SUV Compact wish to own Segment Segment Segment - SUV 2 5 22 55 16 Are you aware of the Yes No emergence of compact SUV segment in the 77 23 market Which of the car Duster Ecosport Tucson Terrano Quanto models are you 88 74 51 70 65 familiar with Rhino Avventura Mobilio Ertiga 35 44 65 65 Rate the following Least Highly features you look for Important Important in a compact SUV (1) (5) Power 4 5 28 35 28 Torque 0 10 36 33 21 Low Body Roll 4 15 39 33 9 Steering 3 3 24 43 27 Grip of tyres 3 3 24 40 30 Driver centric 0 6 21 55 18 controls Off road capability 6 3 18 40 33 Fuel Efficiency 0 10 34 26 30 Interior Features 2 6 31 45 16 Maintenance cost 0 15 25 30 30 Re-sale Value 5 15 30 34 16 Ground clearance 0 12 38 30 20 Leg and Shoulder 2 6 33 31 28 room Seat Comfort 2 11 16 41 30 Riding height 2 5 31 35 27 Visibility 2 5 20 50 22 Looks 2 10 22 35 31 Chrome Plating 2 18 32 33 15 Reliability 0 7 24 48 21 Performance 2 7 13 42 36 Easy Handling 0 7 21 42 30 Space storage 2 11 28 35 24 30 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

In the survey conducted 81of the respondents own their own why the compact SUV segment is gaining more recognition cars. Of which the majority at 47 own a B+ segment car and market share. These cars give the customers more utility (segment/Hatchback Swift, i20, Figo, Punto, Polo etc.) and at with the same vehicle and are more capable of different 14 responses each, SUV and sedan were the second. The A environment situation. segment cars came in the third place with 9%, and MPV and compact SUV at the fourth position. But what was most When asked about the Features customers look for in the interesting was that when the respondents were asked the type compact SUV segment the customers who said they were of car they wish to own the leading B+ segment fell down serious car look for performance and the behaviour of the drastically to 5th position at 5. The first position was taken by vehicle needs every performance accept to be on the higher SUV segment at 55 from14. The compact SUV increased from 7 side but still in the segment no one is looking for serious to 16 and Sedans from 14 to 22. The A, B, B+ segments which performance but adequate mid-range and average figures for had the major response of 65 was reduced to 7. all the parameters.

This shows that there is a huge shift in customer preference in We can see that even though the Indian customers prefer good the passenger car segment. The customers preferred bigger fuel economy as one of the major features it is not the major cars opposing to the smaller A and B segment cars. The preference. More respondents have rated fuel economy as a customers wanted to buy these products but were not able to neutral option. The interior features present in the car are given do so because of the high cost and non-practicality. Majority of a higher importance than the fuel efficiency and is rated at ‘4’. the respondents (77) knew about the compact SUV segment. The customer is looking for more value for money so addition This shows the wide acceptance of the segment with the of more features and instruments add to this value and customers. customers look for these. Maintenance cost and re-sale value is given equal preference by the respondents. This also attributes When asked about the models familiar to the customers in the to the value for money attitude of the customers, they want a segment Renault Duster, Nissan Terrano and Ford Ecosport car with minimum maintenance cost and good resale value so topped the charts emerging as the most popular cars in the that more money is never spend on the car. segement. This was followed by Maruti Ertiga, Honda Mobilio and Mahindra Quanto. While Hyundai Tucson, Premier Rhino Even though it’s a compact SUV segment the customers are not which has been in the market for a longer period of time than looking in to high ground clearance. This is majorly because the the other failed to be recognised by the people. This shows that customers are not looking in to taking the vehicles off-road but the models were did not reach out to the customers and that is still they do want the inside space of the vehicle to match with one of the major reasons why the models failed in the market. that of the bigger cars. This is due to the fact that the customers are looking for a vehicle which is of high utility good in Indian Table 2: Compact SUVs with their launch dates roads and accommodate the whole Indian family.

Models Launch Dates The respondents want the car to have a good seat comfort and Duster July – 2012 good riding height. Comfort of the vehicle is of high preference to the customers the companies should look in to bigger seat in Terrano September - 2013 the frond and the rear too, the Indian customer is more Ecosport June – 2013 conscious of the comfort of the whole family travelling along. Tuscon 2005 – 2010 Riding height is also another important factor which influences the customer; this is one of the major differentiating factors of Quanto June - 2012 the segment to the hatch backs and the sedans. The customers Mobilio July – 2014 are looking for good visibility and high reliability from the Ertiga June – 2012 vehicles. This adds on to the fact that the customer is looking for utility as one of the major factors in the vehicle. Avventura July 2014 The Indian customers are really particular about how the car It was after the launch of Renault Duster that the segment came looks. This is a status image of the customer in the society. They in to the lime light of the market and the customers started are really particular about chrome plating detailing in the cars. looking in to the segment. Followed by the success of the The customer is particular about the performance and Duster in the market other major automobile companies joined handling of the vehicles. But the earlier analysis suggests that the segment with Ertiga, Mobilio and Terrano also found the customers are not looking for great performance figures but success in the market. This can be seen by the identification of looking for capable car with performance capabilities to guide the models by the respondents. through the busy Indian roads with ease. Storage space is one of the major factors which contribute to the attractiveness of When the respondents were asked that whether they are this segment of cars. And this is a feature which the customers enthusiast about cars, 56% of the respondents said they were value very high. This also adds to the partiality of the car. not. This reflects to the facts that Indian customers are more inclined to the utility and status of owning a car than to the driving pleasure of the car. This throw in more light to the fact Influence of Technical Parameter on Preference of Potential Customers towards Compact SUV 31

Conclusion References

Throughout the survey it was noted that the Indian customer is 1. Becker, D. & Nagporewalla, Y., (2010), “The Indian looking forward to having a high utility and highly practical Automotive Industry, Evolving Dynamics”, Automotive Now, vehicle in the compact SUV segment. The customers ranked Issue 1. most of the features asked to be on the average range. This is 2. Dani, V., & Pabalkar, V., (2013), “Driver of Brand Preference due to the reason that the customers are looking for a mix of in SUV Car Segment in India”, Global Research Analysis, Vol. sedan and SUV in the Compact SUV segment. The customers 2, Issue-7. are looking for the easy handling, looks and practicality in 3. Goerge, A. (2014), “Surprise me: Why Sedans may not remain Indian Roads of a sedan and the space, utility and comfort of an India’s favourite for long”, June 21, retrieved from SUV in the Compact SUV. This is more visible by the responses www.firstpost.com of the customers to the off-roading capabilities and the power 4. Gupta, N.S., (2014), “Entry Level Sedans like Amaze, Dzire, capabilities of the car, the customers rated them lesser than the Xcent show smart growth over 55%”, The Economic Times, 15 other features. July. 5. Paul, M., (2003), “A,B,C, D…..There’s a car for each one of This clearly states why the Renault duster is a better option for you”, TNN, March 19, The Economic Times. the customers to the Nissan Terrano, both the cars are basically 6. Prasad A., Godawat, N., Vijaykumar, A., (2013), “Finding the the same both have the same parent company too. Both are Customer Preference “Sweet Spot”, retrieved from made in the same chassis and same specification, but the duster www.atkearney.in/automotive has more features for the ride and has a lesser price, which 7. Saxena, A., (2014), “Consumer Preference and Automobile gives more value for money to the customers. Market in India”, International Journal of Interdisciplinary and Multidisciplinary Studies, Vol. 1, No 6, pp 21-33. Even though they are also in the Compact SUV segment the 8. Shende, V., (2014), “Analysis of Research in Consumer Maruti Ertiga and Honda Mobilio are more like cars than SUV, Behaviour of Automobile Passenger Car Customer”, with all the features of a Compact SUV. This is exactly what the International Journal of Scientific and Research Publications, customers are looking for vehicles with more practicality and Vol 4, Issue 2. utility. These cars with less maintenance cost and more 9. http://www.indiamarks.com/car-segmentation-society-indian- reliability and standard features give more value for the money automobile-manufacturers/ and road practicality. Both the mobilio and the ertiga offer 7 seat capacities to the other competitors.

This helps us to conclude that the Indian customers are looking for the best of both worlds brought together in the compact SUV segment i.e. with high practicality for the big Indian family providing lots of space and storage rooms, good design and good drivability with high value for money. Stress in Today’s World

Dr. Arpita Mishra* Manisha Agarwal** Vikas Malhotra***

ABSTRACT

In today’s dynamic world stress is affecting all the people globally. The work pressure in personal & professional life has contributed largely to rising stress level. The nature of stress has been studied by scholars in a wide range of academic disciplines. Physicians, psychiatrists, and researchers in management have all studied its causes and its symptoms, and have defined the term in a variety of different ways. Stress is defined as "the reactions of individuals to new or threatening factors in their work environments”. Stress is all around us and, sooner or later, it will almost certainly affect everyone. It affects people directly when they themselves are under stress and it affects them indirectly when the people they work with or the people they live with suffer from stress. Stress damages people at home, at work, and in the difficult boundary between home and work. Even the most conservative estimates of the damage caused to people by stress make it a significant issue for individual health and economic prosperity. The impact of workplace stress should not be underestimated. It is seen in the human cost of ill health, broken relationships, career failure, and wasted lives. It is also present in the commercial costs of lower productivity, reduced performance, poor customer service and failure of innovation.1

Stress can be either positive or negative. Some new work situations can bring us positive challenges and excitement. For example, promotions to new jobs present employees with positive stress. Employees may feel anxious about their new work assignments; they also anticipate them eagerly and look forward to the additional challenges, rewards, and excitement. In these cases, the new and uncertain job situations create positive stress. The positive stress is also called the eustress. However, there are certain other types of work that are very threatening and anxiety-arousing. For example, depression in the economy can create negative stress for sales personnel, because they will be much more anxious about making sales commissions and sales quotas. The paper covers the meaning of stress, various sources of stress, various effects or consequences of stress& various methods of managing stress.

INTRODUCTION forward to the additional challenges, rewards, and excitement. In these cases, the new and uncertain job situations create In today’s dynamic world stress is affecting all the people positive stress. The positive stress is also called the eustress. globally. The work pressure in personal & professional life has However, there are certain other types of work that are very contributed largely to rising stress level. The nature of stress threatening and anxiety-arousing. For example, depression in has been studied by scholars in a wide range of academic the economy can create negative stress for sales personnel, disciplines. Physicians, psychiatrists, and researchers in because they will be much more anxious about making sales management have all studied its causes and its symptoms, and commissions and sales quotas. have defined the term in a variety of different ways. Stress is defined as "the reactions of individuals to new or threatening For every individual there is an optimum level of stress under factors in their work environments”. which he or she may perform to full capacity. If the stress experienced is below this optimum level, then the individual Stress can be beneficial as well as harmful .Since stress is of two gets bored, the motivational level to work reaches a low, point, kinds like positive stress or negative stress. Some new work and apathy sets in. If one operates in a very low stress situations can bring us positive challenges and excitement. For environment and constantly experiences boredom, the person example, promotions to new jobs present employees with is likely to psychologically or physically withdraw from work. positive stress. Employees may feel anxious about their new Psychological withdrawal will result in careless mistakes being work assignments; they also anticipate them eagerly and look frequently made, forgetting to do things, and thinking of

*Assistant Professor in SIET, Group of Institutions, Jhalwa, Allahabad. **Research Scholar, MONIRBA, University of Allahabad. ***Academic Counselor, IGNOU, Allahabad & HOD, Department of Business Administration, United Institute of Management, Naini, Allahabad. Stress in Today’s World 33 things other than work during work hours. Physical Sources of Stress withdrawal will manifest itself in increased rates of tardiness and absenteeism, which may ultimately lead to turnover. Stress is a reality of our everyday life. There are both positive and negative stresses that come from our work and non-work Though the optimum stress level is different for different lives. As pointed out by Near. Rice, and Hunt (1980) and individuals, each individual can sense and determine how Sckaran (1986), among others, the work and non-work much stress is functional for an individual to operate in a domains of one's life are closely interrelated. The stresses and productive manner. Health promotion programs should be strains experienced in one domain are carried over to the other. developed within three major domains: (1)schools; (2) work Thus, if one experiences stress at work, that stress will be sites; and (3) communities. Although all three have significant carried over to the home. public health implications, the unique constellation of factors pertinent to the work site merit special consideration. Millions One major source of job stress is the job itself. The way the job is of the employed persons in our society are those at greate strisk designed, the amount of time pressure an individual faces and (almost all under age 65) and are the backbone of our society's the amount of expectations others have of a person at work can productivity. The employers of these millions of workers have all lead to job stress. Interpersonal relationships are a second a major stake in the overall welfare of their employees, as source of job stress. How much contact an individual has with health status and contribute in a major way to productivity and coworkers and managers, how much time he or she deals with profitability of their enterprises.2 clients or consumers, and how pleasant those interactions are all influences of how much stress an individual experiences at Research indicates that those who possess high tolerance of work. Third source is problems in personal lives, which can ambiguity, internal locus of control and self-esteem seem to spill over into the work environment, adding further tension to effectively handle a high level of stress. An individual an already stressful work situation. possessing high degree of tolerance for ambiguity allows him to experience very little anguish while operating under Sources of Job Stress conditions of insufficient information or in an uncertain • Job Characteristics environment. People with an internal locus of control also • Role ambiguity handle stress well since they feel they are in control of the • Role conflict situation, rather than feeling controlled by the situation they • Role overload or ethical dilemmas are facing. This makes it possible for them to manage their environmental stress without experiencing its harmful effects. • Interpersonal Relationships Those with high self-esteem also handle stress with ease since a • Amount of contact with others high self-esteem increases the confidence and enables them to • Dealing with people in other departments deal with stressful situations with calmness and clear thinking. • Organizational climate The more successfully one handles a stressful situation without panicking or getting overwhelmed by it, the more confidently • Organizational Factors will the individual face further stressful situations. Thus, it is possible to raise one’s capacity to handle in different situations. • Personal Factors • Career concerns Objectives of The Study • Geographical mobility • Rate of life change 1. To analyze the stress level of the working employees • Family Background 2. To identify their problems 3. To provide suggestions so that they can cope with stress Job Characteristics A major source of job stress is a person's role in the Research Methodology organization. A role is simply the set of expectations that other people in the organization have for an individual, For example, Research is a process in which the researcher wishes to find out supervisors, coworkers, customers and suppliers expect an the end result for a given problem and thus the solution helps employee to behave in certain predictable ways. The in future course of action. The research has been defined as “A expectations others have of an employee arc sometimes careful investigation or enquiry especially through search for unclear, in conflict, or too high for the employee to meet within new facts in branch of knowledge. the time allotted, and he or she experiences stress.

The present research work focuses on primary & secondary • Role Ambiguity: When there is a lot of uncertainty data. For collecting primary dada 100 respondents from 2 BPO surrounding job definitions or job expectations, people named EXPLORE BPO Pvt. Ltd. & CONVERGYS India experience role ambiguity. With the recent increase in Services Private Limited in Delhi/NCR region are asked mergers and acquisitions among major organizations, certain questions through close ended questionnaire. For more and more employees arc experiencing job stress as a collecting secondary data several books, journals & websites result of role ambiguity. Role ambiguity is anxiety are considered. arousing among employees that leads to job stress. 34 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

• Role Conflict: Often employees discover that different inadequate resources on a long-term basis, this naturally groups of people in an organization have widely varying imposes stresses and strains on the individuals who are expectations of them, and that they cannot meet all those responsible for getting the job done. expectations. This inconsistency of expectations • Structural factors in the organizational setting such as staff associated with a role is called role conflict, which results rules and' regulations and reward systems, may cause in stress. stress. • Role Overload: Role overload is a situation in which • Lack of career promotion in organizations may be employees feel they are being asked to do more than time sometime cause stress. or ability permits. Working under time pressure is • Environmental factors of stress include sudden and especially stressful. unanticipated changes in the marketplace, technology, the • Role Under load: Role Under load is the condition in financial market and so on. which employees have too little work to do or too little variety -in their work. For example, salespeople in a store Personal Factors with no customer, standing around all day with nothing to Employees’ personal lives have a marked effect on their lives at do, could be said to experience role under load. Ironically, work. If things are going well personally, they are more likely role under load leads to low self-esteem, increased to be upbeat and optimistic. They have more energy and frequency of nervous symptoms and increased health patience for dealing with problems at work. On the other hand, problems. if employees are having some personal problems, they might • Ethical Dilemmas: Ethical dilemmas such as whether or be more tense or distracted when they go to work. not one should report the observed unethical behaviors of another person can cause extreme levels of stress in Factors that influence how much stress people bring from their individuals. This will be especially true for those who have persona! lives to the work setting are as follows: strong moral values of right and wrong and a deep sense of • Career Concerns: One major career concern that can cause personal and corporate social responsibility. Tensions stress is lack of job security. A second career concern that arise because one might have to contend against one's own can cause employees stress is status incongruity, i.e., colleagues who might be close friends, and may fear of having jobs with less status, power and prestige than they reprisal and other undesirable consequences. think they deserve. • Geographical Mobility: Geographical moves create stress Interpersonal Relationships because they disrupt the routines of daily life. When Another major source of stress in organization is poor geographical moves arc undertaken as part of a job interpersonal relationships with supervisors, subordinates, transfer, the moves can be even more stressful. The coworkers. or clients. When interpersonal relationships at transferred employees are likely to feel out of control at work are unpleasant, employees develop a generalized work, too, and experience their new work environments as anxiety, a diffuse feeling of dread about upcoming meetings unpredictable. and interactions. Three aspects of interpersonal relationships • Rate of life change: The lifestyle of people are changing at work, which have a negative impact on job stress, are as drastically due to changes and fluctuation in economy, follows: changes in taste & preferences, changes in fashion, • Amount of contact with others: Jobs vary in terms of how changes in external & internal environment that affects much interpersonal contact is built into them. Too much one and all. prolonged contact with other people can cause stress. • Family Background: The people at large are often affected • Amount of contact with people in other departments: by the family problems that lead to stress. Sometimes the Having contacts with people outside one's own illness, death, accident or separation from near & dear department creates a special sort of stress. People in other ones drastically harms the emotional& physical well being departments do not always have an adequate of family members resulting in sleeping disorders, understanding of jobs outside their own areas, which can irritability, anger, depression, fatigue, lack of appetite and cause stress. other problems. • Organizational climate: The overall psychological climate of the organization can create stress. When day-to- Effects or Consequences of Job Stress day life in an organization is marked by unfriendly, distant, or hostile exchanges, employees are continually Negative stress has unpleasant consequences for them, their tense and this causes stress. families and for the organizations they serve.

Organizational Factors Effects on the Individual Following are the organizational factors that cause stress in The impacts of distress on individuals are of following types: individuals: • The subjective or intrapersonal effects of stress are feelings • Work environment factors such as noise, heal, poor of anxiety, boredom, apathy, nervousness, depression, lighting, radiation and smoke are stress-inducing agents. fatigue, and anger. Sometimes experiencing the stress may • Insufficient resources such as time, budget, raw materials, cause aggressive behaviors on the part of the individual. space or manpower also induce stress in the work • The cognitive effects include poor concentration, short environment. When one has to produce and perform with attention span, mental blocks and inability to make Stress in Today’s World 35

decisions. In the above question almost 85% of the respondents said that • The physiological effects can be seen in increased heart they feel stressed out while 15% of the respondents said no to and pulse rate, high blood pressure, dryness of throat, and stress. excessive sweating. • The behavioral effects arc manifest in such things as Q.3. What is the level of stress? accident proneness, drinking, excessive eating, smoking, impulsive behaviors, depression, and withdrawal behaviors. • The manifest health effects could be stomach disorders, asthma, eczema, and other psychosomatic disorders. In addition, the mental health, i.e. the ability to function effectively in one's daily life, will also decline as excessive stress is experienced.

Consequences for the Family Negative stress, which is handled by individuals in dysfunctional ways, such as drinking or withdrawal behaviors, will have an adverse effect on their home life. Spouse abuse, child abuse, alienation from family members, and even divorce could result from dysfunctional coping mechanisms. From the above it is interpreted that about 80% of the employees said they suffer from high level of stress while Consequences to Organizations The adverse consequences on an organization include low 10% said they suffer from moderate level of stress, about 5% of performance and productivity, high rates of absenteeism and the employees said that they suffer from low level of stress & poor decision-making. It also leads to loss of customers remaining 5% were neutral. because of poor worker attitudes, increased alienation of the worker from the job, and even destructive and aggressive Q.4. Is your high stress level due to excessive work? behaviors resulting in strikes and sabotage. The stresses experienced by employees who take on critical roles and are responsible for safety can sometimes be detrimental to the public. For instance, the stresses experienced by a train driver or railway guard, or that of an airline pilot, navigator, or air traffic controller may result in serious accidents. Needless to say that the costs of employee stress to the organization in terms of lost profits, poor image and loss of future business are enormous.

Data Analysis

Q.1. What is the name, age, income, occupation & marital status? Q.2. Do you feel stressed out in your workplace?

About 80% of the employees said yes as they are stressed out due to excessive work while 20% said no as they are not stressed out due to work but are stressed out due to other reasons that affects their stress level & their life.

Q.5. Is your rising stress level due to bad working environment? 36 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

About 55% of the respondents said they suffer from stress because of the coworkers & third parties while 45% responded that they are not affected by coworkers & third parties.

Q.8. Does your organization take measures to reduce stress level?

About 75% employees responded that they are suffering from stress due to bad working environment & remaining 25% of the employees said no.

Q.6. Is your stress level due inefficient management & their policies, rules & regulations?

Approximately 40% of the respondents had opinion that their organisation takes measures to reduce stress while 60% disagreed.

Q.9.Is it your personal life that increases your stress?

About 70% said yes whereas remaining 30% said no as there stress is not due to inefficient management ,their policies ,rules & regulations.

Q.7. Is your high stress level due coworkers& third parties?

From the above it can be interpreted that about 30% respondents mentioned that their stress is due to personal life while 70% disagreed.

Q.10. Do you take personal measures to reduce stress? Stress in Today’s World 37

Q.12.What sources of stress affect you the most? Column1

The respondents mentioned that they are majorly affected due to money so 35% were affected by it, about 25% respondents were affected due to excessive work, about 10% were affected by the changes in the economy, about 15% were affected due to About 65% of the respondents said that they take personal family responsibility, about 6% were affected due to bad precautionary measures to reduce stress while 35% said they relationships,4% were affected due to health problems & 5% are unable to take any measures to reduce stress. were affected due to other reasons.

Q.11. Do your professional work & personal life gets affected Q.13.What are symptoms of stress that harm you? by the stress?

From the above it can be interpreted that nearly 50% respondents suffer from irritability, about 25% suffered from anger, about 5% suffered from fatigue, 12% suffered from sleeping disorder & 8% showed other symptoms.

About 90% said yes as their professional work & personal life Findings gets affected by stress whereas 10% said no as their professional work & personal life does not get affected by 1. From the analysis it is clear that about 85% of the stress. respondents said that they feel stressed out in workplace while 15% of the respondents said no to stress. 2. It can be interpreted that about 80% of the employees said they suffer from high level of stress while 10% said they suffer from moderate level of stress, about 5% of the employees said that they suffer from low level of stress & remaining 5% were neutral. 3. It is observed that about 80% of the employees said yes as they are stressed out due to excessive work while 20% said no as they are not stressed out due to work but are stressed out due to other reasons. 4. The analysis reveals that about 75% employees responded that they are suffering from stress due to bad working environment & remaining 25% of the employees said no. 38 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

5. The study highlights that about 70% said yes whereas Employee Assistance Program remaining 30% said no as there stress is not due to Another widely used strategy is the employee assistance inefficient management, their policies, rules & Programs, which offer a variety of assistance to employees. regulations. These include counseling employees who seek assistance on 6. From the above analysis it can be concluded that almost how to deal with alcohol and drug abuse, handling conflicts at 55% of the respondents said they suffer from stress the work place, dealing with marital and other family because of the coworkers & third parties while 45% problems. responded that they are not affected by coworkers & third parties. Career Counseling 7. It can be interpreted that approximately 40% of the Career Counseling helps the employee to obtain professional respondents had opinion that their organization takes advice regarding career that would help the individual to measures to reduce stress while 60% disagreed. achieve personal goals. It also makes the employees aware of 8. The analysis reveals that about 30% respondents what additional educational qualifications or specialized mentioned that their stress is due to personal life while technical training, if any, (hat they should acquire. By 70% disagreed. becoming knowledgeable about the possible avenues for 9. The study highlights that about 65% of the respondents advancement, the employees who consider their careers to be said that they take personal precautionary measures to important can reduce their stress levels by becoming more reduce stress while 35% said they are unable to take any realistic about their options and can start preparing themselves measures to reduce stress. for it. 10. It can be interpreted that almost 90% said yes as their professional work & personal life gets affected by stress Time Management whereas 10% said no as their professional work & personal Another way of coping with stress is to manage time more life does not get affected by stress. effectively. People can learn to get better organized so that they 11. From the analysis it is clear that respondents are majorly can do their work more efficiently. affected due to money so 35% were affected by it, about 25% respondents were affected due to excessive work, Delegation about 10% were affected by the changes in the economy, Another way of coping with job stress is to delegate some about 15% were affected due to family responsibility, responsibilities to others. Delegation can directly decrease about 6% were affected due to bad relationships,4% were workload upon the manager and helps to reduce the stress. ! affected due to health problems & 5% were affected due to other reasons. More Information and Help 12. The analysis reveals that nearly 50% respondents suffer Some new employees have to spend more time on a job than from irritability, about 25% suffered from anger, about 5% necessary because they are not sure what they are doing. So it is suffered from fatigue, 12% suffered from sleeping necessary that some help should be provided before doing the disorder & 8% showed other symptoms. work that would lead to much efficient, effective work. It would also reduce anxiety and stress among the employees. Recommendations Health Maintenance There are several ways in which stress can be handled so that Probably the most frequently used organizational stress the dysfunctional consequences of stress can be reduced. Some management program is health maintenance. Many of them are: companies invest large sum of money in gym and sport facilities for maintaining the health of the employees. Role Analysis Technique (RAT) The Role Analysis Technique helps both the manager and the Supervisor Training employee to analyze the requirements and expectations from Another type of stress management Program that the job. Breaking-down the job into various components organizations are experimenting with is supervisor training. clarifies the role of the job for the entire system. This also helps The emphasis on supervisory training Program is how to to eliminate reduction of work and thus lowering down the prevent job stress. Managers are trained to give better stress level. performance appraisals, to listen to employees’ problems more effectively, and to communicate job assignments and Job Relocation instructions more clearly. Job relocation assistance is offered to employees who are transferred, by finding alternative employment for the spouses Individual Stress Reduction Workshops of the transferred employees and getting admissions in schools Some organizations have also sponsored individual stress for their children in the new place. These arrangements help to reduction workshops for their employees. These programs reduce the anxiety and stress for the moving family. include biofeedback, meditation to career counseling, time management and interpersonal skills workshops. In lectures Recreational Program and seminars, participants are given a basic understanding of Providing recreational facilities, arranging group meditation the causes of stress and its consequences. Then, participants are programs, help to reduce the stress levels of the employees. given materials to help them identify the major sources of Stress in Today’s World 39 stress in their own lives, and some strategies for dealing with Conclusion that stress more effectively. Stress is so commonplace in present time period. Stress has Yoga & Meditation impact on our health and wellness. Survey findings illustrate a One of the most popular& significant method of reducing scenario in which employees in different organizations stress is through yoga &meditation. The ancient Indian especially in BPO’s consistently experience stress at levels scriptures have laid emphasis on the maintaining healthy higher than what they think is healthy. Stress is a factor that lifestyle by following proper vegetarian diet, regular exercises everybody has to face on a daily basis both in the work and for body& attaining peace of mind. In modern times due to non-work spheres of life. Since the body has only a limited globalization & excessive competition people are working capacity to respond to stress, it is important for individuals to hard day & night that affects their mind & body drastically. By optimally manage their stress level to operate as fully following traditional asana i.e. certain yogic postures, sanyam functioning human beings. Unhealthy behaviors like eating i.e. having regular routine & self-control & lastly pranayama and drinking alcohol to manage stress should be avoided. i.e. concentrating & focusing on breath anyone can have happy, healthy& peaceful life. References Entertainment 1. Managing Work Place Stress: A Best Practice Blue Print By Nowadays stress can be reduced easily by watching Stephen Williams entertainment movies or programs, listening to music & 2. Health at Work By Stephen M.Weiss playing video games. These methods help in relaxing all young 3. Stress & Work: Perspectives on Understanding & Managing & old. The entertainment channels offer wide variety of Stress By Satish Pandey & D.M. Pestonjee, Published By Vivek programs & audio - video compositions for all the sections of Mehra for SAGE Publications India Pvt. Limited, New Delhi, the society & so its gaining importance in day to day life. 2013 4. Stress & Work/Life Balance By David Newth Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats

Dr. M. Vasan*

ABSTRACT

The study develops and empirically tests a model for consumer-based brand equity among oats consumers. In this regard, statistical tools such as Factor analysis, Multiple-regression, Karl Pearson’s coefficient of correlation, One-way Analysis of Variance (ANOVA) and One sample ‘t’ test are used. The dimensions of brand equity such as brand awareness, brand knowledge, perceived quality, brand association, purchase decision and post purchase behaviour are examined through factor analysis. There is a perfect correlation exists among these dimensions of brand equity. After the thorough analysis it has been found out the demographic variables significantly differ with the dimensions of brand equity. Multiple regression analysis identified that brand awareness, brand knowledge, perceived quality, purchase decision and post purchase behaviour are the fundamental building blocks of brand equity.

Keywords: Brand Equity, Brand Value, Brand Awareness and Brand Knowledge.

INTRODUCTION may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and The most popular and potentially important marketing profitability that the brand commands for the firm. Brand concept which has been extensively discussed by both equity is an important intangible asset that has psychological academicians and practitioners over the past decade is brand and financial value to the firm (Kotler, 2007). equity (Atligan, 2005). This is because successful brands can allow marketers to gain competitive advantage. A brand is any The total breakfast cereal market in India is estimated around label that carries meaning and associations, and a great brand Rs 500 crore, comprising cornflakes, oats and muesli. People lends coloration and resonance to a product or service (Kotler, are becoming increasingly health-conscious in India which 2003). A strong brand provides a series of benefits to a firm, fuels the growth of this category. Of this, oats constitute 30 such as greater customer loyalty and higher resiliency to percent of the breakfast cereals in volumes and 18 percent in endure crisis situations, higher profit margins, more favorable value terms of the Ready to Eat (RTE) category. The present customer response to price change, and licensing and brand study is focused to measure and understand customer-based extension opportunities (Kim, 2008). Furthermore, according brand equity of oats. Pappu et al., high brand equity levels are known to lead to higher consumer preferences and purchase intentions. Statement of The Problem

The issue of brand equity has emerged as one of the most The value of a brand and its equity is ultimately derived in the crucial topics for marketing management in the 1990s. The marketplace from the words and actions of consumers. emergence of brand equity has raised the importance of Generally, consumers bank upon various factors before marketing strategies and provided focus for managers and making their purchase decisions, yet most of them critically researchers (Boo, et al., 2009). A powerful brand has high brand consider brand as one of the predominant factors influencing equity. Brands have higher brand equity to the extent that they their choice of product. This underscores the significance of the have higher brand loyalty, brand awareness, perceived brand for any product. It is an undisputed fact that brand plays quality, strong brand associations and other assets such as a very crucial role especially in Ready to Eat Market. This patents, trademarks and channel relationships. A brand with market has been developed organically and vertically over the strong brand equity is a valuable asset. Brand equity is the years in India. Over the coming years this market has huge added value endowed to products and services. This value potential for all its stakeholders to grow and develop. Despite

*Assistant Professor of Commerce, K.S. Rangasamy College of Arts & Science (Autonomous) Tiruchengode. Email: [email protected] Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats 41

this promising future, no empirical studies were undertaken in suitable for the study. The secondary data are collected from this area in the past. As brand plays a significant role in this the books, journals, magazines and web portals. market, the researcher is obviously interested in measuring and understanding brand equity of oats with the following The sampling framework for this study is done in the following researchable questions. manner. First, Tiruchengode, one of the most popular urbanised town of Tamil Nadu is chosen for the study. Second, • How far the brand equity influences among the oats important streets are randomly selected. Third, oats consumers consumers? are selected by implementing snowball sampling method for • What are the factors influencing towards purchase collecting data. The sample size of 150 respondents has been decision? duly selected for the study. • How the consumers react after purchase of oats? • How the demographic variables are influencing on The primary data collected from the respondents has been dimensions of brand equity? analyzed with the help of Statistical Package for Social Sciences (SPSS). Factor analysis by principal component method is By addressing all these questions, the present research would applied to identify the contributory factors that led to brand seek to build a knowledge base about the brand equity among equity. Karl Pearson’s coefficient of correlation is employed to oats consumers. find out the inter-relationship among the factors of brand equity. One-way Analysis of Variance (ANOVA) is used to Objectives of The Study identify the influence of demographic variables on factors of brand equity. One sample ‘t’ test is employed to test the 1. To identify the predominant factors influencing the significance of variables included in the overall brand equity. consumer-based brand equity of Oats; and Multiple Regression analysis is used to build consumer-based 2. To analyse the influence of demographic variables on brand equity model. dimensions of brand equity. Results and Discussion Research Strategy The first part consists of demographic profile and consumption Survey Method has been followed for the study. Both primary pattern of oats consumers. The second part vigilantly analyses and secondary data are used. The study depends mainly on the the consumer-based brand equity with appropriate statistical primary data collected through a well-structured tools. questionnaire. The first part of questionnaire contains demographic backgrounds of consumers. The second part Demographic Profile consists, consumption pattern of oats. In third part, the Consumers’ wants, preferences, and usages rates are often statements for measuring consumer-based brand equity are associated with demographic variables (Kotler, 2000). contained. To find out the consumer based brand equity Demographics are easier to measure than any other Likert’s 5 point scaling technique is employed ranging from segmentation variables; they are invariably included in strongly agree [5] to strongly disagree [1]. This questionnaire psychographic and socio cultural studies because they add was tested for its reliability and its Cronbach’s Alpha Co-efficient new colour to the findings of the study (Schiffman and Kanuk, was 0.745. So, it is inferred that the questionnaire is highly 2000).

Table 1: Demographic Profile

Demographic Profile Classifications Frequency Percent Age Below 30 41 27.3 31 - 40 77 51.3 41 - 50 16 10.7 Above 51 16 10.7 Total 150 100 Gender Male 70 46.7 Female 80 53.3 Total 150 100 Educational Qualification Up to HSC 21 14.0 Diploma / Technical 38 25.3 Graduate 91 60.7 Total 150 100 Marital status Unmarried 68 45.3 Married 82 54.7 42 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Total 150 100 Family size Up to 3 50 33.3 4 - 6 75 50.0 Above 7 25 16.7 Total 150 100 Occupation Businessmen 32 21.3 Govt/private Employees 59 39.3 Professionals 13 8.7 Students 21 14.0 House Wife 25 16.7 Total 150 100 Monthly Income Below 5000 28 18.7 5001 - 10000 48 32.0 10001 - 15000 34 22.7 Above 15000 40 26.7 Total 150 100

The age of respondents divulges that 51.3 percent consumers percent of the respondents are housewives. Monthly income of belong to 31-40 years age group, followed by 27.3 percent the respondents explores that 32 percent of respondents are below 30 years age group. The oats consumers consist of 46.7 earning the income ranges between Rs.5001-10000 and 26.7 percent male and 53.3 percent female. The education percent are earning more than Rs.15000 (Table 1). qualification consists of 60.7 percent consumers are graduates. The marital status wise classification of the respondents Consumption Pattern of Oats depicts that, 54.7 percent of the oats consumers are married. Family size of the respondents shows that majority (50 percent) Consumption pattern of oats can be understood by various of the respondents having 4-6 dependents. Occupation-wise parameters such as, frequency of consumption, brand classification of the respondents infers that 39.3 percent of the preference, sources of information in purchase decision and respondents are Government / Private employees, followed quantity of oats purchased. The results of these are presented by 21.3 percent of the respondents are businessmen and 16.7 hereunder:

Table 2: Consumption Pattern of Oats

Dimensions Classifications Frequency Percent Frequency of Consumption Regularly 68 45.3 Often 55 36.7 Occasionally 27 18.0 Total 150 100 Variety Preference in Oats Flavored 73 48.7 Non-Flavored 77 51.3 Total 150 100 Brand Preference Quaker 49 32.7 Horlicks 25 16.7 Lion 24 16.0 Saffolow 34 22.7 Sun feast 11 7.3 Others 07 4.7 Total 150 100 Sources of Information Family Members 32 21.3 Friends /Relatives 61 40.7 Self Reliance 16 10.7 Media Ads 41 27.3 Total 150 100 Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats 43

Quantity of Purchase ½ kg 47 31.3 1 kg 65 43.3 2 kg 20 13.3 Above 2 kg 18 12.1 Total 150 100 Knowledge on Diversified Usage Aware 111 74.0 Unaware 39 26.0 Total 150 100 Frequency of Using Present Brands Below 1 year 63 42.0 2 - 3 year 62 41.3 Above 3 years 25 16.7 Total 150 100 Brand Switchover Changed 67 44.7 Not changed 83 55.3 Total 150 100

Frequency of oats consumption reveals that the majority (45.3 the brand of oats due to quality, quantity, sales offers, percent) of the respondents consume oats regularly. The choice advertisement and affordable price consideration (Table 2). of preference of oats explores that 51.3 percent of the respondents consume non-flavoured oats. The brand Predominant Factors Influencing Consumer-based preference of oats indicates that 32.7 percent of the consumers’ Brand Equity choice is Quaker and 22.7 percent of the respondents’ preference is Saffolow. Friends and relatives constitute a major Factor analysis with principal component method is applied to source of information (61 percent) for choosing a particular know the predominant factors influence in the brand equity. brand of oats. The quantity of purchase of oats reveals that 43.3 The results of factors analysis is given below: percent of the consumers buy 1 Kg oats in a month. 74 percent of oats consumers are well aware about the preparation of The KMO and Bartlett’s test for sampling adequacy for 30 diversified recipes using oats like Idli, Dosa, Payasam, Upma, etc. variables are found to be 0.705 and the chi-square value of Frequency of using present brand indicates that 42 percent of Bartlett's test for Sphericity is 1287.871. This clearly indicates the respondents are consuming their brand of oats less than 1 that all the 30 variables are different and perfectly distributed year and 41.3 percent of the respondents are consuming for a in a normal distribution. This also emphasized that the factor period of 2-3 years. 44.7 percent of the respondents switch-over analysis is suitable for 30 variables of brand equity (Table 3).

Table 3: Factors Influencing in Brand Equity of Oats

Factor Label and Variables Variable Loadings Factor - 1: Brand Awareness I know the details manufacturers of the brands of oats using by me .794 I have sound knowledge about other brands of oats available in the market .752 Able to differentiate my brand to other brands available in the market .654 I know well about the free gifts and sales offers of the my present brand .650 Able to distinguish between original brand and spurious brand .552 Factor - 2: Brand Knowledge It is very tasty .764 The flavor is good .642 It reduces hungry .618 It controls weight and cholesterol .576 High fiber content helps for easy digestion .493 Factor - 3: Perceived Quality The brand is long lasting .768 I am satisfied with the quality of the brand .717 The quantity of the brand is comparatively good .590 44 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Ingredients of the brand is good .494 The brand offers good utility to me .421 Factor - 4: Brand Association Advertisements and other promotional activities of my brand is good .672 The information provided by the manufacturer of Oats is more reliable .566 More brand association is due to the utility of the brand .525 Factor - 5: Purchase Decision Availability is important for my purchase decision .744 Price must be proportioned to the quality .685 Quantity must be reasonably good .608 I assess the quality of the products before the decision of purchase .601 Manufacturer’s name and reputation are very important to me .561 Utility of the brand is an important factor for purchase decision .472 Factor - 6: Post purchase Behaviour I am satisfied with the utility of my brand .814 I am frequently discussed about my brand with others .785 I am felt happy with the people who use my brand .643 Make repeated purchase if the product is satisfactory .583 The brand which I use is the toppest brand .523 I am having much more affection on my brand .472

Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Rotation converged in 17 iterations

• The first brand equity dimension indicates that consumers • The fourth brand equity dimension portrays that the give prime importance to know the manufacturers details advertisement and other promotional activities of and they also having sound knowledge about other manufacturers are highly attracting the oats consumers. brands available as well in the market. They can able to Further, they believe that the information provided by the differentiate from one brand to another brand. Further, manufacturers is more reliable to bank upon. So, it is they are well aware about the free gifts and sales offers suitably named as Brand Association. provided by the sellers. So, it is suitably named as Brand • The fifth brand equity dimension depicts that the Awareness. consumers of oats are having clear view about the • The second brand equity dimension signifies that purchase decision. The purchase decision of oats is based consumers strongly believe oats controls weights, hungry on availability, quality, quantity, price, brand name and and cholesterol. So, it is suitably called as Brand Knowledge. utility of brand. So, it is suitably called as Purchase Decision. • Third factor described the Perceived Quality of the • The sixth brand equity dimension shows that that the consumers. The consumers are highly satisfied with the consumers of oats are highly satisfied with the utility of available quality and quantity of their oats brands. brand and they feel proud while others consume the same Further, consumers are also satisfied with the brand. Further, they feel that the brand consumed by them performance of their brand. is supreme as compared to other brands. So, it is suitably called as Post-purchase Behaviour. Table 4: Total Variance Explained

Initial Eigen values Rotation Sums of Squared Loadings Component % of Cumulative % of Cumulative Total Total Variance % Variance % Brand Awareness 7.78 6.38 37.66 3.52 7.00 32.03 Brand Knowledge 6.33 5.43 43.09 3.22 6.20 38.23 Perceived Quality 6.61 5.12 48.21 3.22 6.19 44.42 Brand Association 2.73 4.90 53.11 2.91 5.38 49.80 Purchase Decision 2.70 4.83 57.94 2.88 5.29 55.09 Post purchase Behaviour 2.59 4.54 62.48 2.77 5.01 60.10 Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats 45

The total variance table divulges that among six factors ‘Brand Relationship between Dimensions of Consumer-based Awareness’ with highest variance of 6.38 percent influence Brand Equity among the consumers followed by ‘Brand Knowledge’ influence with the variance of 5.43 percent, ‘Perceived Quality’ An attempt has been made to find out the relationship among with the variance of 5.12 percent, ‘Brand Association’ with the various dimensions of brand equity such as brand awareness, variance of 4.9 percent, ‘Purchase Decision’ with the variance brand knowledge, perceived quality, brand association, of 4.83 percent and ‘Post purchase Behaviour’ with the purchase decision and post purchase behaviour. In this regard, variance of 4.54 percent influence in the brand equity Karl Pearson’s coefficient of correlation is employed. dimensions (Table 4).

Table 5: Relationship between Dimensions of Consumer-based Brand Equity

Factors X1 X2 X3 X4 X5 X6

Brand Awareness (X1) 1

** Brand Knowledge (X2) .441 1

** ** Perceived Quality (X3) .377 .532 1

Brand Association (X4) .308* .540* .481** 1

Purchase Decision (X5) .353** .331** .419** .331** 1

Post purchase Behaviour (X6) .360** .454** .476** .356** .508** 1 ** Significant at 1% level *Significant at 5% level

The correlation results explores that there exist a perfect Influence of Demographic Factors on Brand Equity correlation between the various dimensions of brand equity. Dimensions This shows that all these dimensions are highly influencing in determining the consumer based brand equity (Table 5). The demographic variables directly influence consumer behaviour. An attempt has been made to highlight the relationship between dimensions of demographic factors and brand equity. In this regard One-way ANOVA is employed (Table 6).

Table 6: Influence of Demographic Variables on the Dimensions of Brand Equity

Marital Educational Monthly Factors Age Gender Occupation status Qualification income Brand Awareness 1.96** .30** 5.55* 6.22** 1.96* 0.86* Brand Knowledge 1.96* .23* 3.88 11.43* 1.96** 2.78* Perceived Quality 1.02* .96* 1.60* 10.68** 1.65* 0.92** Brand Association 0.97* .75* 3.00* 17.28* 1.62* 4.17* Purchase Decision 0.42* .59 2.32* 5.12* 1.51* 1.40 Post purchase Behaviour 1.22** 1.17 4.69 4.47 1.32* 1.88* ** Significant at 1% level *Significant at 5% level

• Age of consumers significantly differs with brand • Educational qualification of the consumers significantly awareness, brand knowledge, perceived quality, brand differs with brand awareness, brand knowledge, association, purchase decision and post purchase perceived quality, brand association and purchase behaviour. decision. • Gender significantly varies with brand awareness, brand • Occupation of the respondents significantly differs with knowledge, perceived quality and brand association. brand awareness, brand knowledge, perceived quality, • Marital status of the respondents significantly differs with brand association, purchase decision and post purchase brand awareness, perceived quality, brand association behaviour. and purchase decision. 46 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

• Monthly income of the respondents significantly differs Measurement of Overall Brand Equity of Oats with brand awareness, brand knowledge, perceived quality, brand association and post purchase behaviour. The consumers’ attitude towards brand and purchase intention is called as overall brand equity (Andreas Lokken et al., 2012). To measure this overall brand equity, the scale developed by Yoo, Donthu (2001) and Wenbo Cui (2011) are adopted in this study. In this regard, One-sample ‘t’ test is used.

Table 7: One-Sample ‘t’ Test for Overall Brand Equity

Std. Variables Mean t Sig. Deviation Even if another brand has the same feature as this brand, I would 3.81 1.230 8.033 .000 prefer to buy this brand If there is another brand as good as this brand, I would prefer to buy 3.57 .951 7.296 .000 this brand If there is another brand has same price as this brand, I prefer to buy 3.27 1.034 3.158 .002 this brand If I have to choose among brands of oats, this brand is definitely my 3.36 1.000 4.340 .000 choice

The t-test values of the overall brand equity variables are Consumer Based Brand Equity Model statistically significant at 5 percent level. Hence, it is observed that the consumers are having good faith over the brand of oats Factor analysis and its application reveals that the there exists a they have been buying (Table 7). set of major factors among the elements of brand equity. Further, the multiple regression analysis is employed to find out the fundamental building blocks of brand equity. Table 8: Model Summary for Brand Equity

R R Square Std. Error F Sig. .953 .803 5.15 233.703 .000

Dependent Variable: Overall Brand Equity Table 9: Influence of Independent Variables on Brand Equity Model

Unstandardized Standardized Variables Coefficients Coefficients t Sig. B Std. Error Beta Constant 5.721 3.680 1.554 .002 Brand Awareness 1.600 .140 .362 11.387 .000 Brand Knowledge 0.996 .142 .261 7.038 .000 Perceived Quality 1.230 .144 .267 8.562 .000 Brand Association 0.080 .142 .019 .561 .576 Purchase Decision 1.255 .164 .257 7.663 .000 Post purchase Behaviour 0.365 .148 .086 2.465 .015

The R2 value (.803) indicates that 80.3 percent of variation in the significant except brand association (Table 9). This shows that brand equity is influenced by the set of all the independent 80.3 percent of brand equity dimensions such as brand variables included in the model (Table 8). The F test results awareness, brand knowledge, perceived quality, purchase depicts that there exist a significant difference among the decision and post purchase behaviour play a crucial role in variables included in the model (P<0.05). The results of ‘t’ test building of consumer-based brand equity (Figure 1). indicate that all the brand equity dimensions are statistically Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats 47

6. Boo, S., Busser, J., and Baloglu, S., (2009), A Model of Customer-Based Brand Equity and its Application to Multiple Brand Destinations, Tourism Management, Vol. 30, pp. 219-231. Awareness 7. Christodoulides, George and Leslie de Chernatony (2010), Consumer-Based Brand Equity Conceptualization and Measurement, International Journal of Market Research, Vol.52 (1), pp.43-66. Post 8. Chunawalla A.S., (2004), Compendium of Brand Management, Brand Himalaya Publishing House, pp 115-116. purchase Knowledge Behaviour 9. Emari Hossien (2011), Determinants of Brand Equity: Offering Brand a Model to Chocolate Industry, Working Paper, World Academy Equity of Science, Engineering and Technology, pp.1205-10213. 10. Farquhar, P.H., (1989), Managing Brand Equity, Journal of Marketing Research, Vol.1 (3), pp.24-33. 11. Henry Tsai, C Cheung, A Lo (2010), An Exploratory Study of the Relationship between Customer-Based Casino Brand Equity and Firm Performance, International Journal of Hospitality Purchase Perceived Management, Vol.29 (4), pp.754-757 Decision Quality 12. Jeou-Shyan Horngab, Chih-Hsing Liuc, Hsin-Yu Chiua & Chang-Yen Tsaid (2012), The Role of International Tourist Perceptions of Brand Equity and Travel Intention in Culinary Tourism, The Service Industries Journal, Vol. 32 (16), pp.2607- Fig. 1: Consumer-Based Brand Equity Model 2621. 13. Kamakura, A. W. and Russell G. J., (1993), Measuring Brand Conclusion Value with Scanner Data. International Journal of Research in Marketing, Vol. 10 (March), pp.9-22. 14. Keller, K.L. (2001), Building Customer Based Brand Equity: A Branding plays a very vital role in today’s business competitive blue print for creating strong brands, Marketing Science, environment. This study explored the various dimensions of Institute Working Paper Series, Report 1, p.107. consumer-based brand equity of oats such as brand awareness, 15. Keller, K.L. (2002). Strategic Brand Management: Building, brand knowledge, perceived quality, purchase decision and Measuring, and Management Brand Equity (Second Edition). post purchase behaviour which forms a model for construction Pearson Education Ltd., New York. of model for consumer-based brand equity. This study is useful 16. Keller, K.L. and Lehmann, D.R. (2006) “Brands and Branding: to oats marketers to understand and comprehend the Research Findings and Future Priorities”, Marketing Science, dimensions of consumer-based brand equity of oats. Further, 25, 6, pp. 740-759. this study suggests that the marketing agencies are advised to 17. Keller, Kevin L., (1998), Strategic Brand Management- conduct health awareness programs to educate the people Building, Measuring, and Managing Brand Equity, Englewood about the need for consumption of oats such as fat and Cliffs, NJ: Prentice Hall, p. 42. cholesterol control. Moreover, this study may provide the 18. Kevin Lane Keller, (1993), Conceptualizing, Measuring useful information in the direction of designing the clutter Consumer Based Brand Equity, Journal of Marketing, Vol.57 breaking sales promotion strategies to managers. (1), pp.1-22. 19. Kim, K., (2008), Brand Equity in Hospital Marketing, Journal of References Business Research, Vol. 61, pp. 75-82. 20. Kotler, P. (2000), Marketing Management (10th Edition), 1. Aaker David A., (1996), Building Strong Brands, The Free Prentice Hall, New Jersey. Press, Simon and Schuster Inc. p. 319. 21. Kotler, P., (2003), Marketing Insight From A To Z: 80 Concepts 2. Aaker David A., (1991), Measuring Brand Equity, Free Press, Every Manager Needs To Know, John Wiley &Sons, INC., pp. 8- New York. 12 3. Andreas Lokken, Malini Nayar and Maria Runering, (2012), 22. Kotler, P., (2007), Marketing Management, Pearson Education, Brand Equity - Measuring Corporate Brand Strength in the New York, PP. 256-260. Swedish Smartphone Market Dimensions of Corporate Brand 23. Leon G. Schiffman, Leslie Lazar Kanuk, (2000), Consumer Equity from a Consumer Perspective, School of Management, Behavior, Prentice Hall International inc., London p.39. Blekinge Institute of Technology, Karlskrona, Sweden, p.25. 24. Leone P.RRao., V.R., Keller K.L., Luo A.M., McAlister L., 4. Atligan, E., (2005), Determinants of the Brand Equity a Srivastava R., (2006), Linking Brand Equity to Customer Verification Approach in the Beverage Industry in Turkey, Equity, Journal of Service Research, Vol.9 (2), pp.125-138. Marketing Intelligence & Planning, Vol. 23 (3), pp.237-248. 25. Pappu, R., (2006), Consumer-Based Brand Equity and 5. Aziz, N. A., & Yasin, N. M., (2010), Analyzing the Brand Country-Of-Origin Relationships Some Empirical Evidence, Equity and Resonance of Banking Services: Malaysian European Journal of Marketing, Vol. 40, (5), pp. 696-717. Consumer Perspective, International Journal of Marketing Studies, Vol. 2(2), pp.180-189. 48 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

26. Park, C.S. and Srinivasan, V., (1994), A Survey-Based Method 33. Srivastava, R (2009), Brand Equity Measurement in India - for Measuring and Understanding Brand Equity and its How to be more realistic? International Journal of Indian Extendibility, Journal of Marketing Research, Vol. 31(2), pp. Culture and Business Management, Vol.2 (3), pp. 295-306. 271-288. 34. Stella Kladou, John Kehagias (2013), Assessing Destination 27. Pike, S., Bianchi, C., Kerr, G., & Patti C., (2010), Consumer- Brand Equity: An Integrated Approach, Journal of Destination based Brand Equity for Australia as a long-haul tourism Marketing & Management, November, p.323. destination in an emerging market, International Marketing 35. Sudhir Gupta (2011), Marketing Management, Tata Mc Graw Review, Vol. 27(4), pp.434-449. Hill, New Delhi. 28. Rangaswamy A, Burke R and Oliva T., (1993), Brand Equity 36. Wenbo Cui (2011), Creating Consumer-Based Brand Equity in and the Expendability of Brand Names. International Journal of the Chinese Sports Shoes Market: Measurement, Challenges and Research in Marketing, Vol.10 (1), pp.61-75. Opportunities, Published Master of Science Thesis, Aalborg 29. Rosa R. E., & Riquelme H. E., (2008), Brand Equity for Online University, Denmark, p.71. Companies, Marketing Intelligence & Planning, Vol. 26(7), pp. 37. www.en.wikipedia.org/wiki/Brand equity 719-742. 38. www.managementstudyguide.com/brand-awareness.htm 30. Salinas, E., Perez, J., (2009), Modeling the Brand Extensions' 39. www.managementstudyguide.com/brand-equity.htm Influence on Brand Image, Journal of Business Research, Vol. 40. Yoo B., Donthu N., Lee S., (2000), An Examination of Selected 62, pp. 50-60. Marketing Mix Elements and Brand Equity, Academy of 31. Samantha Kumara, P.A.P and Kang Canhua (2010), Marketing Science Journal, Vol. 28 (2), pp. 195-211. Perceptions of Country of Origin: An Approach to Identifying 41. Zeithaml V.A., (1988), Consumer Perceptions of Price, Quality, Expectations of Foreign Products, Journal of Brand and Value: A Means-end Model and Synthesis of Evidence, Management, Macmillan Publisher’s Ltd, pp.343-353. Journal of Marketing, Vol.52 July, pp. 2-22. 32. Simon, Carol and Mary Sullivan (1993), The Measurement and Determinants of Brand Equity: A Financial Approach, Marketing Science, Vol.12 (winter), pp.28-52. Improving Security in VANET through the Position Verification of Alert Message

Ajay Kumar Yadav* Brijesh Kumar Bhardwaj**

ABSTRACT

In order to congregate road safety, information accessibility as well as the driving conditions, an intelligent transport system, vehicular ad hoc network (VANET) have recently turn the joint attention of researchers and manufactures. VANETs are the networks that are formed by equipping vehicles with wireless transmission equipment. It smooth the progress of communication among the vehicles (equipped with OBU), and interfaces with communication points installed as road side infrastructure. In such intelligent transport systems the information sharing among vehicles and road side units is based on wireless communications where there is a possibility of fake information or inappropriate forwarding of information done by malicious vehicles.

In VANETs, through authentication most of the attacks can be prevented, but there is always a possibility of incorrect messages being transmitted. It may be occur due to misbehaving nodes (malicious vehicles) that forward messages corresponding to an event that is either not occurred, or incorrect information is propagated corresponding to an actual event that causing applications to failure. Enhancing the safety and congestion is one of the most prominent issues for the VANET, so through this dissertation it is taken into the consideration to detect the false information. In our proposed approach we will try to identify the fake alert that is generated by a particular vehicle by inspecting its diverse position information received through beacons messages.

In proposed approach it is tried to verify the position of the alert and then decide the appropriate action on the basis of this alert message. If the verification function returns the value 1 then the broadcasted alert by a vehicle will be considered as valid alert and other vehicle can be in progress, otherwise there is some mismatch between the received information and the valued checked by verify function. In this case it will be considered as invalid alert and vehicles will have to pay attention for the corrective majors.

Keywords: On Board Unit, Malicious Vehicle, Alert Messages.

INTRODUCTION environment participating vehicles must be equipped with wireless transceivers and automated control component. In recent technological scenario a number of prospective application domain has emerged, Vehicular Adhoc Network In this communicating environment vehicle can exchange the (VANET) is one of the most exciting emerging field of wireless information only few hundred meters (typically 100 to 300 technology. meters) [1] due to short range of wireless network. But with functionality of hop the message can be delivered to larger Before few years, vehicles were only the mechanical concern distance. but with the sinking cost of electronic apparatus, competing rivalry among the vehicle manufactures along with Most of the VANET communication models suggested that the differentiating product and safety services has rise the name vehicular environment is the integration vehicle along with On vehicular adhoc network, an intelligent transport system with Board Unit, Rode-side units and (RSUs) and Certification safe and secure provision to the drivers. authorities. RSUs and CAs are jointly known as the infrastructure components. OBU are accountable for Vehicular Adhoc Network is a wireless network that is created broadcasting position information of vehicle as well as the among the vehicles as per the requirement. In VANET nature and location of occurrence of an event.

*Assistant Professor, Department of Computer Application, United Institute of Management, Naini Allahabad. Email: [email protected] **Senior Lecturer, I.E.T., Dr. RML Avadh University, Faizabad. Email: [email protected] 50 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Figure 1: Vehicular Ad hoc Networks communicating units [2]

VANET establish the communication link between the vehicles The dissemination of false position may cause the unfair known as vehicle to vehicle (V2V) communication and also direction and not only degrade the performance of a particular enable to link these vehicles to exchange information with the vehicle but affects the efficiency of the overall system and pre installed road side unit (RSU), well known vehicle to road violates the security goals. side (V2R) communication. There are numbers of Certification Authorities (CAs) that are responsible for the identity Most of the recent research in VANET addresses their concern management of vehicles registered in its territory. with certificate revocation, location privacy, authenticity mechanisms through which the security of VANET can be Vehicle to vehicle (V2V) communication is intended to improved. Some time it is also happen that a particular vehicle circulate the safety messages between vehicles while vehicle to is interested to take the advantage of free route that’s why it road side unit (RSU) communication is designed to report sends a fake message. So the essential requirement is the some event information to RSU by concerned vehicle. justification of the propagated alert message, because in the case of inaccurate event information, vehicle will come into Due to mobility of the vehicles the network topology in danger zone that may raise some unfavourable happening. VANET is instantly dynamic and the connection between the Thus the proposed approach will contribute in such direction nodes are short lived, with the same reason the density factor to detect and verify the alert messages to secure the also fluctuate very frequently that generates various security communication as well as to improve the security of the threats. VANET environment.

In order to improve the security mechanism in VANET it is Motivation necessary to aware the vehicles (nodes) about the position of The increasing mobility of people has caused a high cost for incident through the installed application so that driver can societies as consequence of the increasing number of traffic predict its reaction over the received message. congestion, fatalities and injuries. If we take attention over the accidental death through vehicles then we found that each and In VANET, global positioning system (GPS) is responsible for every state suffering from such hazard. location and time information through which the position of a node can be determined. VANET applications are basically There is no doubt to accept that most of time we waste our time based upon the propagation of short packets (message) known and energy resources due to heavy traffic. Some of the reports as beacons that is required by vehicles to propagate the explore that due to traffic congestion we waste approximate 40 information about its status. The information propagated percent of travel time as well as unnecessarily consumes about through beacons incorporate sender vehicle identification, 2.3 billion gallons of fuel per year and this event also position information (coordinate), direction etc. that assists us unfavourably impacts our environment. Along with these facts to compute and judge the speed, acceleration etc as per traffic accidents are responsible for a large portion of death requirement. Through beacons the position information is causes. periodically broadcasted and the other vehicle surrounding in the transmission range can include the details of its According to reports annually more than 40, 000 people are neighbouring vehicles into its neighbour table. killed and much more injured in highway traffic accidents in the United States alone. Improving Security in VANET through the Position Verification of Alert Message 51

The incidence of accidental deaths has increasing trend since 2002. The following figure demonstrates the percentage accidental death rate in various states [3].

%Accidental death

OTHERS MAHARASHTRA CHHATTISGARH 23.6% 15.7% MADHYA 3.6% PRADESH 9.1%

ANDHRA PRADESH 7.6%

RAJASTHAN UTTAR PRADESH WEST 6.0% 7.6% BENGAL KARNATAKA TAMIL NADU 6.1% 6.1% GUJARAT 8.3% 6.3%

Figure 2: Accidental death percentage [3]

The following figure demonstrates the death percentage according to the mode of transportation.

% Accident as per Mode of Transpotation

Pedestrain Others 8.3% Truck/lorry Bicycle 10.3% 2.2% 19.2% Bus 9.4%

Two Wheeler 23.2% Jeep 6.7% Car 10.1% Tempo/Vans 5.7%

Three Wheeler 4.8%

Figure 3: Accidental death percentage as per mode of transportation [3] 52 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

So we require an active participation of technology in the area Background of transportation that can facilitate safe and secure driving. Thus, Vehicular Ad-Hoc Networks (VANETs) predict the VANET Communication model traffic situation through warning and alert so that drivers can In present scenario with the development of technology and get assistance to safe and secure driving. telecommunication services the internet and the wireless communication networks has significantly associate with our Problem Statement daily life. Now such wireless communication development has The next decade of transportation system is predicted as given a prominent Wi-Fi environment like a Wi-Fi city with intelligent transportation system and it is expected that vehicle Wi-Fi road conditions with a rapid emergence. The VANET will communicate with each other via radio interfaces. Thus communication has been classified into two types [2], [4]: the vehicular network offering such functionality with the unique feature of high mobility of nodes, minuscule linkup Vehicle to Vehicle Communication time etc. But with the prime functionality there are major In V2V type of communication, a vehicle communicates with security issues that are needed to overcome. There are a other vehicles in the network to transmit, receive or exchange various research has generated to detect and correct the valuable traffic related information like roadway conditions, security issues. Here we will try to improve the security of accidents on the road, traffic congestions, etc. VANET on the basis of alert message position shared among the vehicle. Vehicle to Roadside Infrastructure communication In case of V2I type of communication, a vehicle establishes connection with fixed equipments referred to as the Road Side Unit (RSU) or Road Side Infrastructure in order to connect and communicate with outside networks like the Internet.

Figure 4: Figure of a Vehicular Network Architecture [4]

Characteristics of VANET high communication overhead for exchanging of The vehicular adhoc network shows some similarities with the information in changing topology environment. mobile adhoc network but due to following uniqueness it • No power constraints: The vehicles are equipped with differs from MANET [5]. battery that supplies the consistent unlimited power supply to handle all the communications and computation • High mobility: The main participating unit of the VANET tasks. is the vehicles so their main uniqueness is the mobility • Localization: with the Global Positioning System all hence the VANET environment is referred as highly equipped vehicle can identify accurate locations. dynamic. • Abundant network nodes: Due to high density of the • Predictable and restricted mobility patterns: In the vehicles VANET is characterized by hue network sizes. VANET environment, nodes are restricted by the authorities or the territory to move with specific velocity Applications of VANET that’s why we can also predict the actual position along There are two types of VANET applications named as safety with time and justify the speed of the vehicle. and comfort application [4], [5]. • Rapid topology change: Due to dynamic environment the network topology frequently changes and it introduces Improving Security in VANET through the Position Verification of Alert Message 53

• Safety Applications node participates in identifying the misbehaving nodes on the Safety related applications may include Assistance basis of data collection & processing, decision and action Messages (AMs) like navigation, cooperative collision modules. On the basis of behaviour information and avoidance (CCA), and lane changing; Information information exchanged from neighbours, each node is being Messages (IMs) like speed limit or work zone information; allotted a rate value that defines the behaviour of that and Warning Messages (WMs) like post crash, obstacle or particular node in network. A node having positive rate value road condition warnings. is treated as non cooperative while, having negative rate value as cooperative behaviours by decision module. If the computed rate value exceeds over a defined threshold value then, a node is declared as misbehaving and an appropriate counter measure is taken by the action module. The proposed detection approach was not very much suitable in the case of collision attack.

A security issue in VANET is prominent concern to prevent the drivers when an attacker is broadcasting or propagating the false information. Jyoti Grover et. al. [8] has proposed a mobility based detection mechanism to detect the malicious nodes propagating such incorrect position information. In this, each fixed RSUs performs various operations like acceptance Figure 5: Safety Application: range verification, maximum allowable speed check, Accident Warning [5] maximum density check, speed consistency verification and time interval validation to validate the faithfulness of node’s • Comfort Applications location on the basis of safety messages. The proposed The main aim of comfort applications is to improve approach is applied and tested at the RSU side only. Due to passenger comfort and traffic efficiency. These computational complexity this approach is not quite suitable at applications included in Value-Added Services (VASs), vehicle level. which can be provided through a VANET. a) Electronic toll collection As per Danda B. Rawat the protection from malicious action, b) Entertainment Applications message verification is one of the most critical concerns related c) Internet Access to security and privacy of VANET. The author Danda B. Rawat et. al. [9] has proposed an algorithm to secure vehicular communication on the basis of trust measured within a stipulated time period using a probabilistic approach. The trust value of each vehicle is calculated on the basis of receiving messages from the different participating vehicles over a specific time period, and then this trust value is evaluated against with the defined threshold value. A vehicle with trust level closer to 1 (greater than threshold value) is genuine vehicle whereas the vehicles trust level closer to 0 (less than threshold value) is malicious. The proposed approach is tested against the different percentage of malicious vehicles and Figure 6: Comfort Application: observation time. From the simulation results, it is observed that detection decision will be more accurate if we enlarge the Internet Access [5] observation time but, in the case of instant reaction this approach is not appropriate. Literature Review According to Boneh et al [10] it is not possible every time to There is a lot of attempt has been prepared and applied over the think about the vehicle but on the basis of the information VANET environment related to improving the security and generated by vehicle we can judge truthfulness of the message privacy issues but the existing schemes in this area might not be and then come on the conclusion that the vehicle is right or not. quite suitable and we are still in progress to enhance the V2V Boneh recommended the group signatures policy for the and V2X communication. vehicular adhoc network. The group signatures applies to sign message so that the receiving vehicle does not require to check According to A. Dadhich in MANET, routing of packets is the authenticity of the message it only verify the node from the made through cooperative multihop forwarding functionality, message is received. But the limitation of this scheme is that it is but few nodes do not proceeds in the same fashion and save very costly because due to mobility of the vehicle group their resources like battery life, CPU cycle, network bandwidth formation is done frequently. etc. A. Dadhich et. al. [7] proposed a solution of such deviation by providing a distributed cooperative system where every 54 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Maxim Raya et al [11] have proposed the local revocation are part of the vehicular network, which provides free Wi-Fi scheme by LEAVE protocol. They suggested the concept of internet access to more than 70,000 people. More than three- voting done by the neighbour vehicle through which we can quarters of mobile device users in Porto use Veniam’s free Wi- decide the nature of vehicles is that misbehaving or node Fi. The network deployed also collects and sends sensor data to correct. the city planning bodies in Porto, where it is used for decision making. The garbage bins are connected to the network and Sandeep K. Harit et al [1] has proposed a misbehaviour send sensor data to garbage-picking trucks to indicate whether detection scheme to check out about the propagated they need to be emptied [17]. information by vehicles is correct or not regarding to an event that has occurred. They paid their attention to over the truth AdaptIVe (Automated Driving Applications & Technologies value of the propagated information rather than to finding a for Intelligent Vehicles) (2014-2018) misbehaviour node. Their proposal was data centric rather AdaptIVe is an ongoing project which aims to explore than the entity centric because it is primarily important for a solutions for automated driving in intelligent vehicles. The vehicle to verify the correctness of the received information in project started in January 2014, and its planned duration is 42 spite of the place the event. In the proposed model they defined months. Under the project, 29 partners aim to develop and test a Fox Hole Region (FHR) that is the area around the locations of partially and fully automated driving vehicles. The project is an event. In this model they considered PKI infrastructure for led by Volkswagen Group Research, and includes major the distribution, revocation and renewal of certificates. automotive players like Daimler, Renault, Volvo, Ford, BMW According to their approach if the weightage value is 0 it means Group among others. The focus is on driver-automation the Cartesian points are inside the FHR and vehicles moving system cooperation, and levels of automation, adjustable with current speed cannot by pass the location and if the according to the environment. The project focuses on four of weightage value is 1, it is totally in safe zone and pass the event size automation levels from the SAE scheme: assisted, partial location. automation, conditional automation and high automation, in the increasing order of automation. Another aspect to be Tangade S. S et al [5] describe the various security attacks and explored is the legal aspects of automated driving. The project emphasis on the design and deployment of successful trust will use V2V and V2I communication extensively, apart from management for VANET so that the road safety and traffic vehicular sensors [18]. congestion can be reach to its excellence.

Mohammed Saeed Al-kahtani et al [2] suggested about the proper authentication and validation of the transmitted messages along with this he recommended that the nodes propagating the fake messages must be separated from the group or the network. In this paper he discusses the various security attacks and put the various perspectives to defend these attacks.

Subir Biswas et al [12] propose safety message authentication scheme for VANET support the ID-based signature as well as verification. In their proposed mechanism ID based technique suggest a certificate-less public key verification, while a proxy signature offer message authentication and trust management. They also ensures that there proposed mechanism was more Figure 7: VANET Project suitable for trust and authentication related to RSU’s deployments supported by consortia application messages. in European Union and USA

VANET Trials & Recent Deployments Compass4D (2013-2016) Compass4D is an ongoing project, co-funded by the European Union (EU), involving 31 partners and 7 cities. It is coordinated Along various related work there are various live and ongoing by ERTICO-ITS Europe. The duration of the project is 3 years VANET projects that are accomplish and deployed by various and was started in January 2013. The aim of this project is to governments along with vehicle manufacturers for the prove the benefits of cooperative systems and deploy services betterment of transportation system over different cities of on the roads of seven European cities: Bordeaux, Copenhagen, European countries few of them are represented as follows: Eindhoven-Helmond, Newcastle, Thessaloniki, Verona and Vigo. The three services being deployed include road safety, Veniam (2014) efficiency and congestion reduction. The vehicles have OBUs In the city of Porto (Portugal), a vehicular Wi-Fi network has installed for vehicle-to-roadside communication. Key areas of been deployed commercially in fall 2014 by Veniam, a startup focus include red light violation warnings, accidents on the that advertises to “turn vehicles into Wi-Fi hotspots”. It has driver’s current route and Energy Efficient Intersections (EEI). been described as a “network of moving things” which can EEI gives priority to emergency vehicles to ensure their connect any vehicle to the internet. Around 600 buses and taxis Improving Security in VANET through the Position Verification of Alert Message 55

response times, and adjusts speeds of ordinary vehicles “road clear” to a malicious vehicle Y and this vehicle according to traffic light timings. Buses benefit by more changes the send message as “jam ahead” and forward to efficient time schedules, electric vehicles by extended driving the neighbour vehicle Z now his vehicle(Z) will change its ranges and cars by increased comfort. The project will route and may come into trouble. incorporate more than 574 users and 334 vehicles. A coverage map of the project is available at. It has been decided to keep the services implemented in the real-world even after project completion [19]. There are various number of projects are under deployment.

Vehicle and Road Automation (VRA) (1 July 2013- December 2016) The aim behind the VRA, the project of 7th Framework Programme is to create a collaboration of professional and stakeholders, for the effective and efficient implementation as well as the deployment of automated vehicles along with their Figure 8: Data Integrity [2] interrelated infrastructure. This project also contributes their effort in the recognition of deployment requirements based on Classification of malicious vehicles vehicle’s domain and road automation requirement. With The malicious vehicles instigate attack on the genuine vehicle these defined objectives it also encourages the pioneering in the VANET environment as per their requirement and research on vehicle and related infrastructure automation not damage the communication or establish the unwanted only in Europe but it’s beyond also. Project VRA is funded by communication. According to their malicious activity we put the European Commission DG CONNECT and coordinated by the following classification [2]: ERTICO – ITS Europe. • Insiders Vs Outsiders The vehicle that is already participating the It is aimed to address the perspective related to deployment communication in VANET performs some non genuine scenario, legal and regulatory needs and standardisation and actions is known as the inside attackers. The outsider certification requirements [20]. attackers are not directly part of the network but the can perform limited capacity of attacks to harm the Security Issues and Requirement communicating system. • Malicious Vs Rational VANET Security Requirements If attackers harm/damage the participating nodes by Secure deployment of VANET is predominantly based on the using some methods without their personal benefits are secure message delivery from the vehicle to vehicle. So the safe known as malicious vehicle. Converse to this, rational and secure messaging in VANET must have to satisfy the attackers expecting their personal benefits that’s why they following needs [2], [4], [5]: use prediction and patterns to execute the attacks. • Authentication: The commutation in VANET • Active Vs Passive environment is established via the genuine exchanging of An attacker if produce a new packet/message to spoil the the messages. So it is the chief concern to authenticate the network is called active attackers while the passive sender of the messages within the system. attackers only listen /observe the wireless channel and in • Verification of data consistency: There should be a nature passive attackers are less harmful. proper checking of duration over which a vehicle can send a message and other vehicle receives the message must not Security Attacks exceed the pre decided duration. There are numerous attacks that can disturb the security of the • Availability: Though the VANET communication VANET and the privacy of its nodes (vehicles). Each type of channel are extended to work with robustness but there attack affects some of the security services in the system. The may be the possibility of some attacks that may reduce or following are the most common devastating forms of attacks block the channel for the communication so there should that a VANET can suffer [2], [4], [5]: be an alternative option to facilitate the requirement of the • Bogus Information: Attackers can send wrong vehicles in to say in the system. information in the network so that it can affect the • Non-repudiation: If there are any accidents or such events behavior of other drivers. For example, an adversary can occur then sender should not be able to reject such inject wrong information about a nonexistent traffic jam or messages. an accident diverting vehicles to other routes and freeing a • Real-time constraints: due to high mobility the route for itself. exchanging of the message should not be delayed. • Alteration Attack: This attack happens when attacker • Data integrity: Data integrity refers that message or alters an existing data, it includes delaying the information’s should not be changed by attackers. If such transmission of the information, replaying earlier this will occur then vehicle users within the will be transmission, or altering the actual entry of the data affected in the lack of such urgent information transmitted. requirement. For example, if a vehicle X sends a message 56 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

• Sybil Attack: In this type of attack, the attacker uses prevent the nodes to select an alternative path to different identities at the same time. These identities can be destination and force them to wait in traffic. used to play any type of attack in the system. These false • Timing Attack: Time is a crucial aspect in any application identities also create an illusion that there are additional so users need accurate information on right time without vehicles on the road. It provides illusion to other vehicle by any delay. In this attack attacker without manipulating the sending some wrong messages like traffic jam message. actual content add some time slot to create a delay in the • Denial of Service (DOS): Here, Attacker wants to bring message due to this user will receive the message after the down the network by sending unnecessary messages on required time. the communication channel. DOS attack can occur by jamming the channel system so that no authentic vehicle Here when a malicious vehicle receives an alert message then it can access the channel. The Distributed DoS (DDoS) is holds the message and transmits it after some time slot when a more rigorous as compare to DOS because a number of vehicle approaching nears the alert place. The following figure malicious car attack over a car in distributed style with illustrates that malicious vehicle should forward the message different location and time. for example number of when the vehicle was at position P but it transfer after few time malicious car attack on vehicle X from different location when vehicle reach upto position P1 where some unfavorable and time so that the vehicle X cannot further establish event was happened. communication with other nodes.

Figure 11: Timing attack [2]

• Tunneling: The attacker connects two distant parts of the Ad hoc network using an extra communication channel as Figure 9: Denial of service [2], [4] a tunnel. As a result, two distant nodes assume they are neighbors and send data using the tunnel. • Social attack: The basic idea of the attack is to confuse and bedazzle the victim by sending unethical and unmoral message so that driver gets disturb. The legitimate user reacts in annoyed manner, which is the main objective of the attacker. It effects the driving of the vehicle which indirectly creates the problem in the network. • Wormhole Attack: In Wormhole attack, two or more malicious nodes form a tunnel to broadcast packets from one end of the network to other ends malicious node and these packets are broadcasted to the network. These node overcome the network and insecure the data packets or Figure 10: Distributed Denial of service [2] delete them.

• Identity Revealing: Getting the owner’s identity of a given vehicle could put its privacy at risk. Usually, a vehicle’s owner is also its driver, so it would simplify getting personal data about that person. • Black Hole: In this type of attack a node refuses to participate in the network or when an established node drops out to form a black hole. In this all the traffic of the network get redirected towards a specific node which is actually doesn’t exists which results in data lost. • Message suppression: In this attacker can selectively drop Figure 12: Wormhole Attack [5] packets from the network which may contain critical information for the receiver. For example an attacker might remove the congestion alerts it receives in order to Improving Security in VANET through the Position Verification of Alert Message 57

Security Schemes • ID-based Cryptography • Elliptic Curve Digital Signature Algorithm: Due the fewer infrastructures PKI and symmetric key To provide security and authentication of messages in cryptography are not very much suitable to handle the VANET environment for the destination vehicle Elliptic security in VANET. So with rich facility of infrastructure Curve Digital Signature Algorithm (ECDSA) provides ID-based cryptography minimize the computational cost message authentication by using hashing mechanism. in the ID-based Signature (IBS). It is suitable for authentication ID-based Online/Offline Signature The ECDSA approach generates private and public keys (IBOOS) scheme. The IBOOS separate the signing process from source vehicle. It allows the public key to all vehicles. into online and offline stages to improve the efficiency. Again the source vehicle hashes and encrypts it by via The offline stage executed initially at RSUs or vehicles side secured hash approach along with private key and then and online stage executed in vehicles during vehicle to transmits it to the destination node [13]. vehicle communications [16]. • Public Key Approach: This approach allocated each node with a pair of secret Proposed Work and public keys. To provide better security and proper monitoring of key Public Key Infrastructure (PKI) is one of Parameters & Description the most suitable approaches. This approach is applicable The approach involves the following parameter that is listed in only when the vehicle is well equipped Event Data the in the table1 along with description. Recorder (EDR) and Tamper Proof Hardware (TPH). The EDR records all the events while the TPH is used to execute the cryptographic procedure. Table 1: Parameters with their description Notations Descriptions The dynamic key distribution protocol proposed by Hesham et al.[14] need not to store lage number of PKI and A_MSG Alert Message also reduce the use of TPD. In this approach the key B_MSG Beacons Message information of vehicle (Electronic license Plate, chassis number) is used to create vehicle authentication code R_MSG Reply Message (VAC) that works as secrete key between certificate authorities (CA) and a vehicle. This approach is quite D_A_MSG Deny A_MSG Message suitable to handle the denial of service attacks. Again the TPA_MSG Time period during a alert message is alive destination node decrypts the message through public key along with hash information. So this approach is much Δ Time interval secure for the authentication of messages because the manipulation in the message will change the hash AE_LOC Location of alert event message. LjT1 Node j sends alert message at time t1 • Symmetric and Hybrid Approach In this proposal the nodes establish the link of TA Alert Type communication only when they are ready to share the NLjT1 Node location secret key. In VANET the most of the approaches are related to public or symmetric keys but a hybrid system TIE Table of invalid events table involves symmetric as well as public keys to improve the E Event security. In hybrid scheme there are two types of communication is used on e is known as pair-wise while the other is group communication.

If two vehicles are interested to communicate then pair wise communication is used where as more than two vehicles communication is the group communication. To reduce the overhead hybrid scheme uses symmetric keys to establish the link for pair-wise communications. • Certificate Revocation Approach To improve the security in vehicular network the PKI is most widely used for the certificate revocation. The certificate revocation is done by certificate authority (CA) that may be either centralized or decentralized. In centralized approach a central authority is accountable for the revocation whereas decentralized approaches, the neighbour vehicles of the revoked vehicle take participation for such decisions [15]. 58 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Proposed Method

Pseudo Code Temp =1, C = 0

Node ni receives A_MSG = at time t2

if A_MSG satisfy[t2 = t1 + time_dist (NLiT2 , NLjT1)] then

if (t1 < t2 and t2 - t1 < TPA_MSG ) and (dist(NLjT1 , NLiT2) < dist(NLiT2, AE_LOC)) then

while t < t2 + do

while ni receives beacon from nj do

Node ni receives B_MSG = (LjT3, t3, NLjT3) at time t4 C=C+1

if t3 and t4 satisfy [t4 = t3 + time_dist (NLiT4 , NLjT3 )] then

Check TIE for type TA of event E

CHK_FUN = Verify (TIE, TA , t1, t3, NLjT1 , NLjT3 ) Temp = 0 if CHK_FUN = 1 then

Broadcast R_MSG = (LiT5, t5, A_MSG) Take action related to alert E Print “Valid Alert” else D_A_MSG = Message Deny (A_MSG)

Broadcast R_MSG = (LiT5 , t5, D_A_MSG) Temp = 1 end if else Temp = 1 end if end while end while end if end if if Temp = 1 then

Report misbehaviour (LiT5, A_MSG) Reject A_MSG Print “Invalid Alert” end if

Explanation the sending node. This verifies that the alert receiving 1. Initially the two variable Temp and C are set as 1 and 0 vehicle can be in progress.

respectively. 6. After that we increase the time stamp and node ni receives

2. Node ni receives an alert message A_MSG including the beacon from nj at time t4 that was send at time t3 and we

five tuples on time t2 that was send by the node j at time t1. recalculate authenticity of time t3 and t4 as above (step 3). 3. Now we have checked the authenticity of this alert 7. Now we check the event (E) from the invalid event table

message on the basis of the sending time (t1) and time that lists all the event type along position. Here we verify taken to reach from location first to location second. i.e. the alert position and the position of the vehicle sending

t2 = t1 + time_dist (NLiT2, NLjT1) the alert on the basis of table information and beacons. 4. Now we verify the alert message with few conditions. This verification will return either 0 or 1 to CHK_FUN. If

a) t1 < t2 and t2 - t1 < TPA_MSG the value of CHK_FUN is 1 and temp is set to 0 then it

b) (NLjT1 , NLiT2) < dist(NLiT2, AE_LOC) justify the alert position is right and it will broadcast

5. In this first of all we check the receiving time(t2) of alert “valid alert”. Contradictory against “valid alert”, if the value of CHK_FUN is 0 then it justify the alert position is message must be larger than the sending time(t1)and not up to date right and it will broadcast “invalid alert”. differences of these time(t2-t1)must not exceed the alive time of the alert message because it is assumed that every Whenever we receive the value of CHK_FUN is 0 then we alert message have a time of alive. Along with this it is also set the temp as 1. verified that the distance between the alert receiving 8. To prevent the misbehavior we can repeat the procedure nodes must be larger than the distance between sending when we receive any alert message to improve the and receiving node. It will verify that node receiving the security in VANET environment. alert is far from the alert position as well as the position of Improving Security in VANET through the Position Verification of Alert Message 59

Conclusion & Future Work 7. A. Dadhich, Dr. A. K. Sarje, Dr. (Mrs.) K. Garg, “A Distributed Cooperative Approach to Improve Detection And Removal Of Conclusion Misbehaving MANET Nodes” The proposed methodology is formulate to secure the VANET 8. Jyoti Grover, Manoj Singh Gaur, Vijay Laxmi, “Detection of environment on the basis of the information gathered from Incorrect Position Information using Speed and Time Span alert and beacons messages. In proposed approach it is tried to Verification in VANET”, SIN’12, October 25–27, 2012, Jaipur, verify the position of the alert and then decide the appropriate Rajasthan, India, Copyright 2012 ACM 978-1-4503-1668- action on the basis of received alert message. After receiving an 2/12/10 alert vehicle can verify the truthfulness of the event on the basis 9. Danda B. Rawatz, Bhed B. Bistax, Gongjun Yan_, and Michele of location verification and take the security majors. C. Weigley, “Securing Vehicular Ad-hoc Networks Against Malicious Drivers: A Probabilistic Approach”, 2011 If the verification function returns the value 1 then the International Conference on Complex, Intelligent, and Software broadcasted alert by a vehicle will be considered as valid alert Intensive Systems, 978-0-7695-4373-4/11 2011 IEEE DOI and if the return value is 0 then there is some mismatch 10.1109/CISIS.2011.30 between the received information and the valued checked by 10. Dan Boneh, Xavier Boyen, and Hovav Shacham, “Short group verify function. In this case it will be considered as invalid alert signatures” In Matthew K. Franklin, editor, CRYPTO, volume 3152 of Lecture Notesin Computer Science, pages 41–55. and vehicles will have to pay attention for the corrective Springer, 2004. actions. Through this we can improve the security of VANET. 11. Maxim Raya, Panagiotis Papadimitratos, Imad Aad, Daniel Jungels, and Jean-Pierre Hubaux, “Eviction of misbehaving and Future work faulty nodes in vehicular networks”, IEEE Journal on Selected Our proposed approach is based on the assumption that the Areas in Communications 25(8):1557–1568, 2007. vehicles are moving in the same direction that will be 12. Subir Biswas, Jelena Mi?si´c, Vojislav Mi?si´c, “ID-based Safety generalize in our future work. If a vehicle moving in opposite Message Authentication for Security and Trust in Vehicular direction and generate an alert then location verification will Networks”, 31st International Conference on Distributed not be judged. Computing Systems Workshops, 2011 1545-0678/11 © 2011 IEEE References 13. A. Hesham, A. Abdel-Hamid and M.A. El-Nasr, “ A dynamic key distribution approach for PKI based VANETs”, Wireless 1. Sandeep K. Harit, Gaurav Singh, Neeraj Tyagi, “Fox-Hole Days(WD), 2011 IFIP, pp.1-3, 10-12 Oct. 2011 Model for Data-centric Misbehaviour Detection in VANETs”, 14. M. Manvi, M.S. Kakkasageri, and D.G. Adiga, “Message 2012 Third International Conference on Computer and Authentication in Vehicular adhoc Network: ECDSA based Communication Technology, 978-0-7695-4872-2/12 © 2012 Approch”, Future Computer and Communication, ICFCC IEEE 2009. International Conference on, 2009, pp. 16-20. 2. Mohammed Saeed Al-kahtani, “Survey on Security Attacks in 15. H. Al. Fasai, “Revocation in VANETs: A Survey” Innovations Vehicular Ad hoc Networks (VANETs)”, 978-1-4673- in Information Technology (IIT), 2011 International Conference 2393,2012 IEEE on, pp.214-219, 25-27 April 201.1 3. Accidental Deaths Report by India National Crime Records 16. Huang Lu, Jie Li and M Guizani, “ A Novel ID-Based Bureau. Authentication Framework with Adaptive privacy prevention 4. Bharati Mishra, Priyadarshini Nayak, Subhashree Behera, for VANETs ” Computing, Communications and Applications “Security in Vehicular Adhoc Networks: A Survey”, Conference (ComComAp), 2012, pp.345-350, 11-13 Jan. 2012 ICCCS’11, February 12–14, 2011, Rourkela, Odisha, India. 17. https://veniam.com/ Copyright 2011 ACM 978-1-4503-0464 18. http://www.adaptive-ip.eu/ 5. Shrikant S. Tangade, Sunilkumar S. Manvi, “A Survey on 19. www.compass4d.eu/ Attacks, Security and Trust Management Solutions in 20. http://vra-net.eu/about-the-vra-network/ VANETs” IEEE – 31661, 4th ICCCNT – 2013 July 4 - 6, 2013, Tiruchengode, India, 6. Hannes Hartenstein, Kenneth P. Laberteaux, “A Tutorial Survey on Vehicular Ad Hoc Networks” 0163-6804 IEEE Communications Magazine, June 2008 E-retailing: Challenges and Opportunities in India

Dr. Vandana Pandey* Pankaj Kumar Tripathi** Dr. Mohd Anam Akhtar***

ABSTRACT

E-retailing refers to a practice of selling retail goods through internet. Basically it is a revolution in e- commerce and e-business and modernizes way of selling goods and services by online. Due to technological advancement retailing wearing a new concept and emerged as in new form of e-retailing. The current era is full with new challenges, today’s trends get old tomorrow and a new challenge covers the market. Therefore, businessman always still in awaken situation in respect to market changes and threats. E-retailing is a practice of selling retail goods on the internet which is useful to customer who have lack of time but need to a variety of goods at reasonable price.

E-retailing or online is growing at faster pace in India. It has witnessed steady growth of 50-60 % over the years. E-retailing accounts for 10 % of e-commerce activities in India. Even though there are growth prospects for online retail in India we have challenges which need to be addressed. The article focuses on the opportunities and challenges for online retailers in Indian business environment.

The Indian Online Retail is a rich segment waiting to be exploited. Internet is a potent medium that can serve as a unique platform for the growth of retail brands in India. The medium holds many virtues favorable for the retail industry including a higher customer penetration, increased visibility, and convenient operations. The current web-based models for e-tailing are part of an embryonic phase preceding an era of rapid transformation, challenge, and opportunity in Indian retail market. The Indian retail market is witnessing a revolution. The growth of internet has enabled the new retail format of the virtual retailer to emerge and forced the existing retailers to consider e-tailing model of retailing as well. Internet retailing or e-tailing has firmly established itself as a viable alternative to store based shopping. This paper attempts to provide a clear picture about the e-tailing in India and its opportunities and challenges.

Keywords: E-Commerce, E-Retailing, internet, Technological Advancement

INTRODUCTION At Kearney’s 2013, global retail e-commerce index stated that India has unharnessed online retail potential. India has become Retail scenario has been wearing new approach rapidly due to a attractive destination for e-commerce due to a huge size of the revolution in field of information technology. IT enabled peoples are using internet and mobile internet facilities so world has been changing market scenario by introducing new growth prospect of online retail are high as well as growth hi-tech technology rapidly by internet, maximizing uses of opportunities there are threat which need to be considered. smart phones, tablet and new electronic equipment covered with new application and software. The fact is not denying that Objectives of the Study in IT enabled world a huge number of customers are consuming internet facilities and it become as a necessary need The major objectives of the study include: of life. 1) To understand the online retail market in India and its impact on Indian retail. Today is the era of globalization and customer is aware in 2) To analyze the opportunities for online retailing in India respect to variety of products and bound within a particular 3) To study the major challenges for online retailers in India pace to access products available anywhere in the world. Now he can go beyond the boundaries of any market area where he lives to access the things of his interest.

*Assistant Professor, Department of Commerce at Sri Murli Manohar Town P. G. College. Ballia (U.P.) Email: [email protected] **Research Scholar (Commerce) at Mahatma Gandhi Chitrakoot Gramodaya Vishwavidyala, Chitrakoot Satna, (M.P.) Email: [email protected] ***Assistant Professor at United Institute of Management, Allahabad. Email: [email protected] E-retailing: Challenges and Opportunities in India 61

Scope and Methodology of the Study • In Apparel and personal care segment we have Myntra, Jabbong, Zovi, fashion and you, Flipkart, Amazon and The study looks into the online retail market and how it had Yebhi.com etc. impacted the Indian retail industry. The scope of the research • In grocery category the major players include Bigbasket, study is limited to online retail market, the opportunities and Greencart, ekstop, Local banya, Nature’s basket etc. challenges for the evolving online retail market in India. • Specialised players like Ferns n Petals, Tilia and Floraindia for flowers and birthday cakes etc. Source of Data: The study is primarily based on the secondary • In sports goods the major category players include data collected from journals, industry reports, company Decathlon, Playground online, Khelmart and Sports 365 websites, news articles and reports. etc. • Service retailers include lenskart which provide eye tests Essential of e-retailing: There are certain essential along with eye lens, glasses and well forte for some limited components for e-Retailing business to be successful. Before medical service. Some retailers like Apollo pharmacy, setting up an electronic storefront, one must consider these Healthkart and Buydrug make online customer and do components well in advance. The important essentials of e- online sales of different variety of medicines. retailing are as- • In category of wholesale market (B2B) we have players like • E-Catalog best price (Wal-Mart) is playing a remarkable role in • Search Engine online space. • Shopping Cart • In C2C (Customer to Customer) we have E-bay, Olx which • Distribution of Digital goods serve as an online shopping space and for auctioning of • On line customer sales person different products. • An order status checking facilities • Create consumer community. Meaning of E-retailing

E-retail and Major online retail players in India E-retailing refers to selling of goods and services through the internet. Electronic retailing includes business to business and E-retail or online retail refers to retailing activities done business to consumer sales. The term is an inevitable addition through internet. We have many online or e-retailers in India to other similar terms such as e-business, e-mail and e- who provide a variety of products to customers. In general commerce. E-retailing usually refers to the business to retail business is referred as Business to Consumer (B2C). consumer transactions. E-retailing is gaining ground. Online retailing is divided into three main categories- We can categories online retail players into two types, one is 1. Click and brick: the businesses that use both the online as • Category focused players. well as the offline channel lies in this category. • Other multi category focused players. 2. Click: the businesses that operate only through the online • Category focused players provide particular merchandise channel fall into this category. with deep assortment. ie. - Myntra, Jabbong (Apparels and 3. Brick and mortar: this is the conventional mode of Lifestyle products), Bigbasket, Local banya (Grocery retailing. The businesses that use the latest retailing segment) and Fabfurnish, Pepper fry (Furniture), Carat channels and still rely upon the conventional mode belong lane, Juvalia and you (jewellery), First cry, my baby cart to this category. (baby products). • Multi category players provide variety of merchandise E-retailing offers the consumer a basket full with variety of with limited assortment. Ex: - Flipkart, Amazon, Future products through websites with useful links to similar sites bazar and Snapdeal etc. For better understanding we look that give opportunities to consumer to choose and compare at some of the categories and the major online retailers in with homogenous products and can select goods as per these categories. Retailers advertise different type if requirements. products by different websites. products like books, stationery, electronics, furniture, apparels, personal care, The convenience of online purchasing is unmatched indeed. It grocery, flowers, sports goods and services also. save the time and do less stress of waiting in long Ques , billing • The major players in book category include Amazon, and carrying along with dealing with irritating sales man and Flipkart, Naaptol and Land mark. shopkeeper. • Stationery items are sold by online players like Flipkart, Amazon, Stationery shop, Snapdeal and Homeshop 18 etc. However, e-retailing causes problem with fit, when consumer • In Electronics segment we have specialised players like make order online, he do not have the option to try the Croma (Tata group) and E-zone (Future group) alone with products, return method may also very tough, it can be difficult other players like Flipkart, amazon, Infibeam, Snapdeal, to return. The shipping and handling costs may turn the Future bazar, Naaptol who sell electronics items like customer away. E-retailing technology savvy customers and mobile phones, computers, tablets, television and other this puts a limit its potential reach. durables. • In Furniture category major players are like Fabfurnish, Pepper fry, Urban ladder, Home town, Zansaar and Homeshop18 etc. 62 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

No doubt that e-retailing is emerging as an interesting emerging in India which witnessed a growth with 30 phenomenon in the retail industry that is on a rise despite the million users in 2013 compared 22.51 million users in 2012. disadvantages associated with it. From these trends we can conclude that Indian customers are gradually changing with respect to the way they do Opportunities in India financial transactions. Credit, Debit cards and Net banking can facilitate quick and convenient transaction for The current business environment in India has the potential to customers which can augment the growth of e-retailing in enhance the growth of the online retail in India. Some of the key India. With the emergence of secure transaction methods factors that can contribute to the growth of online retail in India like two factor authentication, One Time Passwords(OTP) include and payment gateways, consumer’s preference to shop a) Increase in the number of Internet users and online and do financial transactions online has increased. This buyers- According to Google, India now have around 200 can enhance online retailing because of enhanced security million internet users which are expected to reach 500 and easiness in doing the transaction. Some of the retailers million by 2018. Every year there is an estimated increase are providing the facility of cash on delivery options of 5 million internet users every month. One of the key (COD) to customers those who are skeptical about the factors contributed to the increase in internet users is the secure transactions in online platforms. This forms more spread of broad band connectivity across the country. In than 60% of the total ecommerce transaction in India. 2013, the broad band connectivity is around 15.13 million. Banks and ecommerce sites are taking proactive steps in Government is talking initiatives to increase it by 214 enhancing on-line transactions by addressing security and million broad band connections by 2014. This will enhance other issues with respect to online transactions. the accessibility of internet for common people. Forrester’s d) Rising disposable Income and Rapid Urbanization- Asia pacific retail forecast predicts that online buyer Annual disposable income in India is expected to increase population will reach 39 million by 2014 and 128 million at CAGR of 5.1% and expected to be USD 3823 by by 2018 which can stimulate the growth of online retailing 2015.According to 2011 Census, the Urbanization showed in India. an exponential growth rate of 2.76%. We have around 337 b) Smart phone revolution and Mobile Internet- India is million people who live in urban areas in 2011. The census one of the markets which is witnessing growth in smart data shows that the no of statutory towns increased at the phone customers. In 2013, there were 51 million smart rate of 6.37% during 2001-2011. There is steady increase of phone users in India which is expected to reach 104 million urban agglomerations at the rate of 23.7% during this by 2014. But this forms about 10 per cent of the total mobile period. These trends can enhance the prospects of online users currently. The availability of cheap smart phone can retailers. enhance the growth rate in future. Access to 3G and 2G e) IT hub- Internet penetration rate of 7.1% in India is one of mobile data networks and availability of cheap smart the highest in world and we have one of the highest phones can enhance the customer transaction using numbers of Internet users in absolute terms. India is mobiles. Most of the online retailers are developing their considered as one of the prominent IT hubs in the world mobile applications to enhance the shopping experience. but, all these have somehow not translated into positives Amazon came up with their own 3D smart phone- “Fire in the retail space. Retail industry in India stands at $390 phone” to enhance the mobile shopping experience of billion (Source: India retail blitz, A T Kearny) and their customers. If we compare the mobile internet users organized retail is fast catching up. Many of the big we can observe increasing trend with respect to mobile retailers have forayed into the on-line mode without much internet users. According to 2015 projection, out of 300 success. On-line retail forms a meager 0.47% of the total million internet users 200 million users will be accessing retail market. This shows the plethora of opportunity for internet using mobile phones which can enhance e- on-line retailing in India. The Indian e-commerce market retailing opportunities in India. at INRI 9200 core is heavily tilted towards travel sites. c) Increase in transaction by Debit cards, Credit cards, Net More than 75-80% of this market is constituted by travel and mobile banking- Retail electronic payments was portals like Makemytrip.com, Yatra.com etc. About 12% of around INR 33.8 lakh crore in 2013 compared with INR the rest is contributed by on-line classifieds like 50,000 crore in 2004. Credit card payments has grown matrimonial and job portals. The above mentioned data is seven times during this period and reached INR 1.2 lakh motivating enough for both buyers and sellers, who are crore in 2013. In the case of Debit card transaction there willing to use internet as a source of their commerce, as was an increase in 15 times which is 25 around INR 74,300 always we are focused on the customer centric market crore in 2013. If we analyze the trend electronic transaction where the customer is god, and every dance on the stage of has increased during 2013 which forms 57% of banking market is performed according the tune of customer. transaction compared with 43% of paper transaction. There was an increase in registered internet banking users Here we will focus on some other of the factors which attracts in India during 2013 which was around 35% for public the customers preferring the online purchasing. sector banks 25% for private sector banks and 5% for 1. Convenience Factor: Online retailers are moving towards foreign banks compared with 2012. But still Internet enhancing the convenience factor and thus attracting the banking transaction forms 2-8% of total banking shoppers to use this channel. Moreover the growth of the transactions for all Indian banks. Mobile banking is mobile communication has led to the growth of the online E-retailing: Challenges and Opportunities in India 63

retailing as people are more accessible to internet 24 x 7. b) Poor Internet speed- One of the biggest problems India Like in the case of purchasing from the physical market we facing is the slow speed internet connection which can have to wait for the shop to open and certainly we try to get affect the prospects of online retail in long run. The our merchandise before the shop closes, but in case of average internet speed is less than 1 mbps which makes it online retailing there is no time limits involve all you need one of the low ranked nations in global scenario with is a internet connection and money in your pocket to pay respect to internet speed. This can affect the accessibility to the price and everything is at your door step. shopping sites and online transactions which will in turn 2. Payment Mode: As compare to the earlier days where we reduce the customer buying through online portals. have to make the payment in advance and wait for our c) Customer Trust and Loyalty- Some of Indian online order for weeks, now we make the order first and make the retailers lack trust among the customers. Even though we payment when the goods are delivered to us, have trusted players like Flipkart, Myntra and Jabbong, WatchKart.com, lenseKart.com, FlipKart.com, etc. are other retailers were not up to the mark compared with some of the examples. 3. Delivery: For general type of other players. The entry of foreign online retailers like products line DDV, CD, Goggles, books etc., are being Amazon has forced Indian players to enhance customer delivered to the customer in 2 to 3 working days and the loyalty. Flipkart has started an initiative called Flipkart goods which are required to be produced like special print first which provides same day delivery, priority customer sarees, customized bags etc., are delivered within 5-6 services, free shipments and exclusive offers. working days. Moreover single unit of any product chosen d) Overcoming touch and feel mental barrier of Indian by the customer can also be delivered trans border, which customers- Indian customers prefer to touch and feel may not be possible to import in case of physical purchase. products before they purchase. The biggest challenges 3. Product Comparison: without having to move from one faced by online retailers to overcome this barrier. Online shop to other for comparing the benefits of the product, retailers are trying to overcome this barrier by adding the shopper gets the benefit of comparing the features and more specifications and information about products. They cost analysis at one place. Most of the sites are providing also share customer feedbacks to enhance the confidence this facility wherein shopper can choose the product of customers. which exactly suits him. e) COD and Returns management- Cash on delivery has 4. Cost and Time saving: a shopper saves a good amount of emerged as the preferred mode of payment by online time and money by shopping online. In the metros and customers. This has created certain critical issues for even in the smaller towns which are growing fast, the life online retailers. Some of the logistics providers levy extra of an average person has become very fast. He has very charges from the customers which can affect the retail little time after his normal routine office schedule to go to business in long run. Delay in remittances of the Cash the market and purchase even the daily need items. collected by logistics providers from customers can reduce the working capital for online retailers. Another important Challenges in India issue faced by online retailers is the customer returns and how to handle it. Some of the logistics players don’t have Even though India online retailing has growth prospects, there the capacity to handle the returns. More over this can are multiple challenges for e-retailers in India market. It create an additional cost for the retailers which is an includes important issue faced by online retailers. This has forced a) Logistics- Effective logistics play a key role in determining some of the retailers to start their own logistic arm to the operational success of e-retailers. If we look at the India address these issues in a better manner which can enhance our country is large and fragmented with poor customer trust and convenience. Moreover this can infrastructure facilities. So timely delivery, and other provide the cost advantage for online retailers in long run. priority services are the biggest challenges for online f) Complex tax regime- One of the major constraints faced retailers in our country. Moreover cost of logistics in India by e-retailers is the complex tax regime in India. Non is high due to lack of adequate infrastructure. This has uniform VAT (Value added tax) are levied by different forced some of the retail players like Flipkart and Amazon states. In some case state governments charge VAT for to build their own logistics arms. Flipkart has e-kart products sold within a state in which warehouses are logistics which takes care for their delivery process. Some located. This has affected the cost for sourcing and of the online retailers are tied up with logistics companies delivering for products and services for online retailers. for fulfilling customer orders. One of the biggest problems Multiple point taxation, Octrai and entry taxes are other faced by logistic companies is the limited airline feet size of major drawbacks in India which can affect the prospects of logistic companies. We look at the Indian scenario we have online retailing in India. It also forced some of the retailers limited fleet of freight carriers which can hinder the to open warehouses in different states to reduce the entry priority services like same day delivery for customers. Air and other taxes. Online retailers looking at fleet size comparison Courier service providers of US and implementation of uniform Goods and Services tax (GST) India Another important drawback is the limited which can add operational convenience to online retailers. technology investments and developments in Indian g) FDI policy in B2C ecommerce- India’s FDI policy restricts logistics sector. If we look at developed countries there is 100 % FDI in Multi brand retail which is applicable to e - huge investment in technologies like GPS, RFID commerce activities also. In online B2B e-commerce 100% technology to enhance the tracking of shipment and FDI is allowed but this is not applicable to B2C ecommerce delivery of customer orders. 64 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

activities. Government allowed 51 % FDI in B2C e- E-retailing Strategies commerce for retailers with brick and mortar operations. Currently most retailers are following a market place Getting the customer information in the proper way model in which online retailer provides a platform for potential buyer and sellers. This can result in limited Target the right customers for the time being margins, restricted control over product, service and speed of delivery. The restriction with respect to FDI is Create and innovate an effective communication affecting the growth and expansion plans of online retailers. Strong logistic and supply change management h) Slow change in the buying behavior- Indians are still reluctant to buy on-line and prefer brick and mortar Right positioning in the right way models. Indians still like to have a feel of product and spend time in buying. Conclusion i) Inability of on-line retail players to sway customers from offline mode to on-line retail channel- Lack of Indian retail sector is witnessing dynamic changes over the proper marketing and advertisement, inability to create a years. With a steady growth rate of 50- 60% online retail can brand image, lack of proper usage of all possible on-line make significant contribution to retail industry and economy means like search engines, paid marketing, on-line ads, of our country. In modern scenario, e-Retailing or online social networking, blogs etc to reach the customers. shopping has become part and parcel of the people in India. Inability of online retailers to drive the values a customer The new wave of consumerism coupled with urbanization can derive by shopping on on-line channels. with paradigm shifts in the demographic and psychographic j) On-line portals are not up to the mark- There have been dynamics have driven consumers frequently to use retail few lacuna’s in the exiting on-line websites like poor front website to search for product information and make a purchase ends, website search options are not good, lack of of products. sufficient information about products and terms and conditions, slow websites etc There are several things have been discussed to consider when k) Lack of seriousness- A lot of on-line portals have come up e-retailing start, This present paper makes an attempt to: deals in India backed by major retail distributors but, for many it with the challenges occurring in the e-retailing, opportunities seems to have been just a onetime setup. Post this there in Indian scenario, the strategies that are being followed in hasn’t been enough drive to propagate the brand and present scenario in e-retailing. E-retailing in India can be a services of the portals among potential clients. Our success at the same time we measure so many valuable things discussion with few portal owners gave us a feel that many like big retailers have opened a website because their peers are 1. e-retailers should have change their business models and doing so. understand their consumers more with keep the fact in l) Issues concerning security and transaction frauds- In mind that consumers are the real Kings. addition many of the web portals don’t support all on-line 2. To make conducive environment because it is inevitable to modes of payments. There are high occurrence of failed create a sustainable environment mechanism for futuristic payments and this if often a deterrent for clients to revisit growth of e-Retailing in India. the portal. 3. To capitalize on these growth trends we need to improve m) Competitors are just a click away- When consumers our physical infrastructure, policy framework and search, they have multiple options available, and many operational environment in our country. use search to navigate the Web rather than type in or 4. To determine the value of e-commerce in the India retail bookmark specific sites. sector. n) Visitors can disappear in 15 seconds or less- Online 5. To investigate current trends and technological consumers are goal-oriented shoppers. If they don't advancement and usage. immediately find what they're looking for when they 6. To explore a possible strategy and approach to online e- reach your site or landing page, they're gone in under 15 retailing. seconds. 7. To determine and clearly articulate the advantages and o) Shopping is a multistep process- Online consumers love disadvantages of having an online e-retailing. to browse. Many spend a fair bit of time visiting several sites just to gather information. They may also compare Now a day’s E-retailing is playing vital role in domestic and the offerings of several competitors before hitting the "buy international market, with this technology customers can now" button. register and communicate with business to order product and p) Time between initial visit and purchase has increased- services and can pay from a credit card or debit card to the Increasingly financially challenged consumers may wait respective companies. longer before buying. q) Customers wait for merchants' best offer- Having been seduced during the holiday season with free shipping and handling and other price-driven offers, consumers have been trained to wait for a special deal. E-retailing: Challenges and Opportunities in India 65

References Development” ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 3, July 2011, ISSN 2231 1. Alexander, C., J.M. Pearson, L. Crosby. 2003. "The Transition 5780. to E-Commerce: A Case Study of a Rural-Based Travel Agency." 10. A.T. Kearney, Inc. (2004), Emerging Priorities for Global Journal of Internet Commerce 2(1): 49-63. Retailers, Chicago: A.T. Kearney, Inc. Marketing and 2. Cordeiro, W.P. 2003. "A Case Study: How a Retail Jewelry Communications. Store Learned to Compete in the E-Commerce Market Place." 11. Bell, David R., and James M. Lattin (1998), “Grocery Shopping Journal of Internet Commerce 2(1): 19-28. Behavior and Consumer Response to Retailer Price Format: 3. Poon, S. and Swatman, P.M.C. (1997). "Small Business Use of Why ‘Large Basket’ Shoppers Prefer EDLP,”Marketing Science, the Internet: Findings From Australian Case Studies." 17 (1),66-88. International Marketing Review 14 (5): 385-402. 12. Briesch, Richard A., Pradeep K. Chintagunta, Edward J. Fox 4. Lone-Eagle Consulting. 2006. "E-Commerce Success Stores of (2005), “Assortment, Price, and Convenience: Modeling the Idaho." Determinants of Grocery Store Choice,” Working paper. Dallas, http://lone-eagles.com/idaho-E-successes.htm TX: Southern Methodist University 5. http://www.indianretailer.com/magazine/2011/november/E- 13. A report by the Internet and Mobile Association of India. 11. retailing-risks- andbeyond_52-2-11/ http;// www. Penn-olson.com/wp-content/uploads/2011/03/1- 6. http://www.investopedia.com/terms/e/electronic-retailing-e- billion-india-ecommerce.gif. ****** tailing.asp 14. "ASM’s International E-Journal on Ongoing Research in 7. Manish Dwivedi, Kumawat Mahesh & Verma Sanjeev, Management and IT" E-ISSN-2320-0065 INCON – X 2015 International Journam of Engineering and Management 100 E-Retailing in India – Opportunities and Challenges Prof. Sciences (I.J.E.M.S), VOL.3(3) 2012: 336-338. B. M. Hiremath Dr. C. R. Gudasi. 8. Dr. Prakash M. Herekar, e-Commerce in India - Problems and 15. Strategies, Advantages and Disadvantages in E-Retailing, Prospects, ASM’s International E-Journal of Ongoing Research Dr.M.Prasanna kumar, Sri Revana Siddeshwara Institute of in Management and IT, e-ISSN-2320-0065, INCON13-Fin- technology, :[email protected] 014. 16. E-retailing in India: Opportunities and Challenges BY 9. Dr. Suman Kumar Dawan, Uttiyakar, “E-Tailing in India: Its Jayakrishnan.S IJRFM Volume 5, Issue 3 (March, 2015) (ISSN issues, Opportunities and Effective Strategies for Growth and 2231-5985) International Journal of Research in Finance and Marketing. Rural education in India (A Contextual Commentary)

Mohit Kumar* Rohit Kumar Vishwakarma**

ABSTRACT

Exposure towards providing basic educational facilities in rural parts of India is a focused domain in writing of this report. India is a country of diversities which can be observed at any moment, from any point of view, through reflection of cultural difference per hundred kilometers on an average. Education is an attribute highly affected by social parameters and thinking and due to a gap in rural and urban Indian lifestyles the education system have varying degrees of its coverage. In further parts of report the focal point of discussion is situated illuminating the current picture of educational environment in rural India, issues and challenges and future prospects in a detailed manner.

Keywords: Basic educational facilities, rural and urban lifestyle gap, educational environment, etc.

INTRODUCTION Historical Context

Education in any form is an acquisition and expression of Post independence era in its very starting stage just after knowledge which helps in smoothing the pathway to the independence is the growth phase of education system but unfamiliar outside world. Education system in developing focused towards the higher education system only. Primary countries has critical conditions for its growth. There are so and elementary educational environment is not well many underlying causes for hurdles of class education system established or promoted by the central authorities of India. By in developing nations. The bigger picture which is clearly seen these reasons only in between the 1950-2000, where the is vast differences in urban and rural lifestyles and their unique primary education is developed by a factor of three is quite less characteristics for development. The situation become more to the established elementary schools and college level critical there are differences prevail in cultural and social educational institutions, particularly in this period. The values in the same nation (Kataria. M, 2011). This report is growth embarked by higher educational institutions is 18 and concerned with such developing nations and taken into 24 times more than that of opening of primary schools. consideration Indian subcontinent.

Table 1

Year Literacy Rate (%) Number of Schools Total Males Females Primary Upper 1951 18.33 27.16 8.86 215,036 14,576 1961 28.31 40.40 15.34 351,530 55,915 1971 34.45 45.95 21.97 417,473 93,665 1981 43.56 56.37 29.75 503,763 122,377 1991 52.21 64.13 39.29 566,744 155,926 2001 65.37 75.85 54.16 641,695 198,004

Source: MHRD (2003a).

*Assistant Professor, Deptt. of Business Administration, United College of Engineering & Research, Naini, Allahabad. Email: [email protected] **Assistant Professor, Department of Business Administration, United Institute of Management, Naini, Allahabad. Email: [email protected] Rural education in India (A Contextual Commentary) 67

The total number of enrollment at all levels of education was started by Prime Minister Mr. Jawahar lal Nehru in 1959 was stood at 23.8 million in 1950-51 and has unprecedented legalized in almost after 30 years with the 73rdamendment Act increase by 189.2 million (NUEPA 2011). But a close review in 1992. This means the strengthening rural education program gives a clear picture in the sense to analyze the share of primary is ignored for almost three decades and through which rural enrollments made and sustained. It has been observed that development is also delayed. enrollments made at primary levels are more but did not sustain with the same figures for longer period. There may be After 1992, government initiatives are constructively made in fresh enrollments for the middle and higher levels and they are improving rural literacy, for the first time the educational comparatively less to primary enrollments. infrastructure needs are ascertained and policies and programs are made to fulfill these needs. Construction and maintenance The government initiatives and programs like ‘Education for of school buildings and other facilities are seriously all’ has changed the scenario to a greater extent which is undertaken. Massive recruitment drives are introduced to reflected by the figures of 2006 recorded by MHRD, where it is appoint teachers and trained persons to be a part of the found that 95 percent of village population have a primary nurturing the juveniles in their basic educational development school at every 1 km and 85 percent of the population has the (Azim Premji Foundation 2004). same at every 3 km. Collectively it can be said that rural uplift through education has been on the lines of improvement Prior to these efforts there were no attentions are made in during the past 60 years (NUEPA 2011), but yet not improved students-teachers ratio, the only emphasis has been made to totally. Now, in the lines ahead, report has furnished with the the primary areas which includes the school buildings, and relevant causes for non-achievement of the 100 percent literacy other physical infrastructures (Ward. M 2006). As shown in task even after six decades of independence. research study conducted by Unicef in May, 2008 the student/teacher ratio at primary and secondary level from the The inside story eighties till 2005 ranges between 40 to 50 teachers per thousand students at primary level and 20 to 30 teachers per thousand There are manifold reasons for non accomplishment of students at secondary level. However, the figures above given reaching out to the hundred percent literacy levels in India. The are representing the pan India educational set up comprising rural literacy rates are still poor in the states of Bihar, Uttar both urban and rural areas. Thus, it is difficult to analyze the Pradesh, Madhya Pradesh, Rajasthan, Jharkhand etc. these proportion separately but the data can be assumed as a base to states are having low per-capita and steady rate of understand the current scenario. development. The prime cause of the defectives is blamed to lack of educational facilities but the defects in education are Another reason is the religions, responsible for cultural blamed to whom (Kataria. M, 2011). diversity in India. India is the only country having such a vast diversity claiming various religions, several languages and The entire northern belt of India comprise of major portion of dialects. The important religions comprising of majority of population residing their comprising both rural and urban, population is Hindu and Muslims. Muslims are minorities in having rich natural resources and decides the political lines for some states and usually they are not under privileged to basic the formation of government in Central. States like Bihar and amenities, so the education too. Due to several disturbing event UP is having such capabilities as declared in above lines but yet taken place in the past and immediately after independence the rural education system is worst in these states. Bihar in the has dismantled the faith of mutual confidence on other past decade is having only about 2528 primary schools over a communities among Muslims were prevalent(Ward. M, 2006). total rural population of 92,075,028 and UP with worse conditions having 2802 primary schools over rural population These senses of insecurity prevent them to send their children of 155,111,022 as compare to Maharashtra who is the third at to the school run by other communities or having majority of rural population is having more than 9000 primary schools. other communities. Practicing this made them educationally However, in past years Bihar has signified tremendous growth backward and conditions is rural areas are worst (Azim Premji and become the fastest growing state. Foundation 2004). The same thing happened with the lower caste people, either of Muslim or Hindu communities, of The one of the most relevant causes for low pace of growth in Indian states they are also affected by feelings of lacking rural education system in India is lack of political will power or belongingness. Rural education imbalances are suppose to be opportunistic behavior adopted by political parties. India has impinged on with all the reasons which is being discussed and diversities is culture, language, rituals and livelihood, which there are other reasons too which is not being notified in this also become a hurdle to inject educational reforms in rural report due to time and resource constraints but have close India (Kataria. M, 2011). Though the early politicians were relevancies. visionaries but it may happen that their board mindedness somewhere resulted in ignorance of rural education. However, The current phase they are committed to eradication of poverty and improvement of lifestyles of rural people, but education has In this section the report is dealt with remedial measures taken not been emphasized equally to such level of commitment. The to improve rural education in past recent years. The current Panchayati Raj system for the empowering the rural people status of development would help in developing with so many attributes of which education is most significant, understanding about growth achieved by educational 68 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

institutions in rural India (Ward. M, 2006). The works of central is administered in number of educational and vocational government, states and UTs are done in focused manner with institutions to establish in rural areas. A graph given below the legalization of Panchayati Raj program. A positive change would clear the picture in real sense:

Chart 1

Source: NSSO, 2002.

This is study of 10 years back, the current situation is better, runs in all the blocks having 1000 people population and more now it is 2013 and the stable political situation has contributed than 700 tribal areas of Himalayan regions at less strict norms. to develop the rural education infrastructure to remarkable AWC has started in 1975 and the states like UP, MP, Bihar, edge. Various schemes formulized for rural educational Rajasthan have been part of this since its inception (NUEPA advancement like the Anganwadi Centres, DISE, Mahila 2011). Samakhya, Education for all initiatives, RTE Act etc. though these programs and schemes are made for different education Elementary education have covered whole India with the level but primarily its objected towards rural educational features like more than 130 million students are being taught empowerment (Ernst & Young, 2012). by 4 million teachers in one million elementary schools by 209 instructional days. The conditions in 2005 were like there is The rural educational reforms at five basic levels i.e. pre only one or two male teachers are there at 1to 100 students and primary level, primary level, middle level, secondary level, on average almost 78 percent of the schools covered under and higher level. Anganwadi Centres (AWC) started for the same features. In 2010 with implementation of RTE Act and purpose of developing the learning habits in the children at rural lifestyle development with MGNREGA has improved pre-primary stage aged between 3 to 5 years. Similarly the the situation to really good exemplified with students-teachers primary and middle level is for developing the fundamental ratio of 1.21 at elementary level but primary and higher level is learning concepts of various subject areas. Secondary and still have to improved (Ernst & Young, 2012. Where the higher level is for strengthening those learning concepts, there primary education needs more and more human resources, are several sub level programs which runs to support these higher education needs quality human resource in form of broad and long term programs. Integrated child development teaching faculties. scheme (ICDS) is centrally sponsored scheme. AWC program Rural education in India (A Contextual Commentary) 69

Chart 2

Academic Qualifications Male Female Below Secondary 3.10 3.90

Secondary 20.36 23.68 Higher Secondary 24.69 25.95 Graduate 32.68 29.08 Postgraduate 15.32 14.26 M.Phil. or Ph.D 0.21 0.23 Others 0.16 0.19

Source: NCERT.

The chart above shown depicts the percentage of teachers by References their respective academic qualifications including male and female both. As it can be observed that least percentage of 1. Ward. M (2006),Rural Education, India Infrastructure Report, Phd’s are there and teachers with only secondary education are DFID Education Research Paper, India Country Programme. almost equal to graduates. However, at elementary level rural 2. Ernst & Young, (2012), Right to Education: Role of Private teaching force comprised of post graduates and M. Phil. Sector, available at www.ey.com/in [accessed on 6th Feb. 2013] Qualifications and some are having Phds also which is quite 3. UNICEF, (2008), Education Statistics, India, Division of Policy appreciative when compared to the countries of similar GDP and Practice, Statistics and Monitoring Section, available at and per capita levels. www.childinfo.org [accessed on 6th Feb. 2013] 4. Kataria, M, (2011), Role Of Education In Rural Development: Conclusion With Regard To Problems And Suggestions, International Journal For IT and management, Vol. 1, Issue 4. Meerut Rural education in India is still in developing stage but has University. acquired tremendous expedition in the few recent years. Rural 5. NUEPA (2011), Elementary Education in India, Where do we education would develop with the development of rural stand? Analytical Tables, MHRD, Govt. of India. economic status. The agriculture growth which is major 6. Azim Premji Foundation (2004), The Social Context of occupation of rural sphere still has to acquire a growth rate of 4 Elementary Education In Rural India. percent which is targeted in almost three five year plans and not yet achieved by whatever reasons. Report has gone through every significant cause for under performance in the area of rural education and remedial measures to strengthen all educational levels. With conclusive statements considering all the facts it may be strongly assumed that education in rural India have bright opportunities to grow. As it shown in Chart 2 there is least difference on gender base educational status. This also gives a positive sign for fine performance to be adhered in near future. Discrete Overview on Public Sector Undertakings: Growth of PSUs Under the benefits of better Human Resource

Mudita Gupta* Dr. Devendra Prasad Pandey**

ABSTRACT

When we talk about the growth of any PSU sector in India we are adhered to obtain the functions of all the machinery and system where HR development is to be measured. Post autonomy the appearance of Public Sector Undertakings was supported as the device for offering force to the development of Indian Economy. The Government took a few approaches choices to set up Government controlled, Government financed endeavors to conquer any hindrance in the middle of rich and poor, ideal utilization of common assets, local imbalances, and non-appearance of private area in those business exercises which either were absolutely socially arranged or were driven by less net revenues. All the while, government forayed into all business exercises in this manner coming in direct rivalry with the private division in all parts. At the point when the execution of all such PSUs were pronounced against the execution of their partner in private segment, then it was uncovered that either a large number of these PSUs were not executing as efficientely as those in private area or were at that point in dark red fiscally. Investigation of poor execution of these PSUs prompted the conclusion that all these PSUs should be viably fiscally figured out how to come closer or to surpass the execution private division organizations. This was likewise key to guarantee that arrangement of open assets ought to be done in such a prudent way, to the point that as opposed to turning into a consistent weight on Government exchequer these PSUs ought to add to the country's development on self supported premise This paper spreads brief history with reasons why the idea of business associations as PSUs rose, different kind of PSUs and what are the elements of their budgetary administration. Catchphrases-Public area Undertakings ( PSUs), Industry, Economic Development , HR Management , Central Public Sector Enterprises (CPSE) , Privatization.

INTRODUCTION of commercial enterprises. The Industrial Policy Resolution 1956 ordered commercial ventures into three classifications ADVENT OF PUBLIC SECTOR AND ITS GROWTH SINCE regarding the pretended by the State - The first class (Schedule INDEPENDENCE An) included businesses whose future advancement would be Post Independence, India was pondering grave HR issues, for the selective example, disparities in wage and low levels of business, provincial uneven characters in monetary improvement and • obligation of the State The second (Schedule B) class absence of prepared labor, feeble modern base, lacking included Enterprises whose activities of improvement ventures and framework offices, and so on. Henceforth, the would essentially guide for Public Sector was created as an instrument for • be driven by the State yet private investment would confident monetary development. The nation received the likewise be permitted to supplement the endeavors of the arranged monetary advancement strategies, which conceived State And, the third classification incorporated the the improvement of PSUs. At first, people in general division remaining commercial ventures, which were left to the was kept to center and vital commercial ventures. The second private area. stage saw nationalization of commercial enterprises, takeover • In 1969, development of Public segment endeavors saw of wiped out units from the private part, and passage of the another time with the nationalization of 14 noteworthy general population division into new fields like assembling banks. The Industrial Licensing Policy 1970 set certain buyer products, consultancy, contracting and transportation confinements on endeavors having a place with and so forth. The Industrial Policy Resolution 1948 plot the substantial mechanical houses, characterized on the significance of the economy and its persistent development premise of advantages surpassing Rs 350 mn. In 1973, the underway and fair circulation. In this procedure, the approach meaning of substantial modern houses was received in visualized dynamic engagement of the State being developed

*Research Scholar, Mahatma Gandhi Chitrakoot Gramodaya Vishwavidhyalaya. Email: [email protected] **Head Department of Rural Management, Mahatma Gandhi Chitrakoot Gramodaya Vishwavidhyalaya. Discrete Overview on Public Sector Undertakings: Growth of PSUs Under the benefits of better Human Resource 71

congruity with that of the Monopolies and Restrictive units, have a tendency to give more data. G. Estimating Trade Practices Act (MRTP) 1969 and organizations whose arrangement The department of open division undertaking benefits surpassed Rs 200 mn. has set out specific rules for valuing by PSUs with the target to serve the general enthusiasm of the group. The priorty indicated towards foundation and development of Public Sector endeavors saw inversion in 1991. The Statement Status of Public Sector Undertaking on Industrial Policy in July 1991 was likewise noteworthy. It got major changes in the MRTP Act too. The announcement PSUs are organized mainly as departmental enterprise or reexamined the need of the general population segment. Open statutory corporation or companies. Short Comings in the Sector Undertakings (PSUs) can be named Public Sector Management of Public Sector Undertakings With the passage Enterprises (PSEs), Central Public Sector Enterprises (CPSEs) of time, the functioning of Government is becoming more and and Public Sector Banks (PSBs). The Central Public Sector more transparent. With the commencement of Right to Enterprises (CPSEs) are likewise characterized into "vital" and Information Act, every citizen has access to most of the 'non-vital'. Regions of key CPSEs are: Arms • and Ammunition Government information. Functioning in Public sector and the united things of barrier types of gear, resistance air- undertakings are also now under public scrutiny every specialties and warships Atomic Energy (aside from in the moment. With the opening of most of the sectors to private territories identified with the operation of atomic force and companies, except for very few strategic sector such as defence uses of radiation • and radio-isotopes to horticulture, and nuclear sectors, performance of public sector companies medication and non-vital commercial enterprises) Railways are compared with the very best private companies in that transport. • All different CPSEs are considered as non-key. II. sector. This comparison has led to the conclusion that Public Money related MANAGEMENT IN PSUS Public part Sector Undertakings are often bad managed Companies. There endeavors are regularly rebuked for awful HR Management are various reasons for such poor management but to a name a for different reasons. The most essential of the reasons is the few are over capitalization, delayed implementation of the absence of responsibility. Since, the working in the Public project, lack of responsibility of the managers, too much Sector Undertakings is not just affected by benefit thought dependence on subsidy or grant from the government, over process similar to the case for any or a large portion of the staffing, poor inventory management etc. While, most of the private part organizations, rather different variables, for PSUs are generally deficient on one or the other parameter but example, social target, fair dispersion of assets and riches and in Project execution by any PSU, Delhi Metro Rail Corporation tending to the needs of need divisions and territories are few of Limited has set an example where two serious factors i.e. cost the elements which impact the working of Public Sector overruns and delayed execution of the project were largely Undertakings in India. III. Uncommon FEATURES OF HR tamed showing extra ordinary brilliance in the project MANAGEMENT IN A PUBLIC SECTOR UNDERTAKING execution and its management. If we restrict our discussion to (PSUS) A. Part of money related consultant The budgetary the HR management then one single largest factor is bad guide possesses an essential position out in the open division inventory management. The public Sector undertakings are endeavors. His simultaneousness is required on all proposition often blamed for over inventory resulting in blocking of capital which have money related ramifications. B. Capital planning and space or less often for under inventory upsetting choices The force upto certain points of confinement, in production schedule. Both are signs of inefficient inventory admiration of individual capital consumption things has been management and consequently for the bad HR management. assigned to the leading group of open part endeavors. For There is generally no provision for working capital margin at making ventures past the breaking point the proposition goes the time of estimating cost of project. Consequently there is no to Public Investment Board which evaluates and prescribes provision of long-term funds for working capital and the tasks to the Central Government. C. Capital structure choices enterprise has to obtain financing from short-term sources. Such choices include the distinguishing proof of diverse Most of the public sector units are capital intensive hence ratio wellsprings of account. Ordinarily PSUs are financed on the of current assets to fixed assets is generally low. Most of the premise of half of their capital being fit as a fiddle of value and public sector undertakings lack application of working capital the rest fit as a fiddle of credits. The assets are additionally management techniques especially relating to receivables like given to PSUs specifically by the administration. The discount rate, credit period and credit standards. The reason accompanying variables are thought seriously about at the being that they sell bulk of their output to Government season of planning capital structure (i) incubation period (ii) Departments. level of business danger (iii) capital power of undertaking and (iv) flexibility of evaluating. D. Working capital administration HR in A Public Sector Undertaking The stock constitutes a noteworthy part of the working capital of open area endeavors and subsequently appropriate stock The HR Advisor guide involves an imperative position in all administration ought to be given top need by open segment open part endeavors. He works as the main consultant to the endeavors. E. Review Public part endeavors notwithstanding CEO of the endeavor on all HR matters. The advisory group on standard review directed by expert bookkeepers, are liable to open segment endeavors has determined the accompanying effectiveness cum-respectability review by the Comptroller capacities and obligations regarding a HR guide: a. and Auditor General of India whose reports are exhibited to Determination of HR needs of the firm and the ways these Parliament consistently. F. Yearly report The yearly reports of needs are to be met. b. Plan of a system to give best cost-volume open segment units however like those of private division benefit relationship. c. Investigation of HR consequences of all 72 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

operations and proposals concerning future operations. d. the commercial enterprises between open area and private Examination of practicality studies and itemized venture segment for the last. The arrangement of Greenfield reports from the perspective of general monetary suitability of Privatization has gained significant ground following the the task. e. Behavior of unique studies with a perspective to presentation of the new financial approach (NEP) in 1991. The decrease costs and enhance proficiency and gainfulness. A procedure of re-partition has been essentially through: De- critical part of the HR counselor as for the administration of authorizing Reduction in spending plan designation. open area undertakings is the significance of key HR arranging procedure in managing clashing targets. It is a viable mode to Outer guide/concede Anomaly in obligation structure enhance the stream of assets required by the general corporate Decision-production frameworks. Prior, HR Management was system and to make sufficient procurements to meet restricted to bookkeeping of different HR exchanges in the possibilities. This requires: a. The improvement of satisfactory Public Sector Undertakings. Generally, Public Sector HR data framework. b. The presence of clear key HR goals. c. Undertakings have comprehended that proficiency in HR The co-appointment of arrangement with the Government's administration is of most extreme significance, if the PSUs are financial, social, financial and money related strategies. to make due in the aggressive environment. The opposition is likewise from inside i.e. rare assets of the Government and Conclusion from the outside world i.e. rivalry with private division. A great deal has been done; still parcel should be done to get Truth be told, the general population division is set for a effectiveness the working of Public Sector Undertakings. noteworthy change. It is balanced for a noteworthy cosmetic touch up. "The general population part will get to be specific in References the scope of exercises and its venture will be centered around key cutting edge and vital base." The Government has 1. HR priorities in PSU India AIEER 2007, Volume II additionally cleared up that people in general segment needs 2. Rastogi Atti n and Sharm to patch for itself and quit depending on Government's 3. Adventurous themes on HR machinaries in PSU, AIEER budgetary backing. Privatization has come as the best device in Volume 37 the hands of the Government for acquiring effectiveness the 4. a V.K., Public sector Journal vol. iii, July 2012 issue, pp. 78-81. Public Sector Undertakings. It is the procedure of changing Central Public Sector Enterprises, Quarterly News Letter Issue PSEs and goes for decreasing inclusion of the state or general I Vol. I March-June 2011. society part in the country's monetary exercises by partitioning A Study on Initiatives, Achievements and Progress of Financial Inclusion in India

Prakash Kundnani*

ABSTRACT

For economic development of any country financial inclusion is a way towards inclusive growth and it plays a major role in driving away the poverty. Financial inclusion or inclusive financing is the delivery of financial services, at affordable costs, to sections of disadvantaged and low income segments of society. There have been many formidable challenges in financial inclusion area such as bringing the gap between the sections of society that are financially excluded within the ambit of the formal financial system, providing financial literacy and strengthening credit delivery mechanisms so as to improvised the financial economic growth. A nation can grow economically and socially if it’s weaker section can turn out to be financial independent. The purpose of this paper is to analyze the current status of financial inclusion in India; to critically analyze the government, RBI and banks initiative on Financial inclusion and literacy in India; to analyze the financial inclusion in India through the lens of Crisil Inclusix Index. The study focuses on the role of financial inclusion, in strengthening the India’s position in relation to other countries economy. For analysing such facts data for the study has been gathered through secondary sources including report of RBI, NABARD, books on financial inclusion and other articles written by eminent authors. After analysing the facts and figures it can be concluded that undoubtedly financial inclusion is playing a catalytic role for the economic and social development of society but still there is a long road ahead to achieve the desired outcomes.

Keywords: Financial inclusion, Business correspondents, Financial stability, no frill accounts, inclusix index, Kisan credit cards.

INTRODUCTION have been many formidable challenges in financial inclusion area such as bringing the gap between the sections of society Financial Inclusion is considered to be the core objective of that are financially excluded within the ambit of the formal many developing nations since from last decade as many financial system, providing financial literacy and research findings correlate the direct link between the financial strengthening credit delivery mechanisms so as to improvised exclusion and the poverty prevailing in developing nations. the financial economic growth. Unrestrained access to public According to World Bank report “Financial inclusion, or broad goods and services is the sine qua non of an open and efficient access to financial services, is defined as an absence of price or society. It is argued that as banking services are in the nature of non price barriers in the use of financial services.” The term public good; the availability of banking and payment services Financial Inclusion needs to be interpreted in a relative to the entire population without discrimination is the prime dimension. Depending on the stage of development, the objective of this public policy. Thus the term Financial degree of Financial Inclusion differs among countries. It’s been Inclusion can be defined as the process of ensuring access to surprising fact that India ranks second in the world in terms of financial services and timely and adequate credit where financially excluded households after china. For the inclusive needed by vulnerable groups such as weaker sections and low growth process of economy the central bank has also provided income groups at an affordable cost. high importance to the financial inclusion. Normally the weaker sections of the society are completely ignored by the “Financial Inclusion is the process of ensuring access to appropriate formal financial institutions in the race of making chunks of financial products and services needed by all sections of the society in profits or the complexities involved in providing finance to the general and vulnerable groups such as weaker sections and low weaker section. Financial inclusion or inclusive financing is the income groups in particular at an affordable cost in a fair and delivery of financial services, at affordable costs, to sections of transparent manner by mainstream institutional players.” disadvantaged and low income segments of society. There - RBI CIRCULAR 12.08.2011

*Assistant Professor, Department of Management, United Institute of Management Allahabad. 74 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Financial Inclusion, broadly defined, refers to universal access Sustainable Livelihood: Once the weaker section of society to a wide range of financial services at a reasonable cost. These got some money in loan form they can start up their own include not only banking products but also other financial business or they can support their education through which services such as insurance and equity products. they can sustain their livelihood. Thus financial inclusion is - (The Committee on Financial Sector Reforms, Chairman: Dr. turn out to be boom for the low income households Raghuram G. Rajan) Political Objectives: There are certain other political objectives Scope of Financial Inclusion which can be achieved with the wider inclusion of lower strata In advanced economies, Financial Inclusion is more about the in the society and an effective direction can be given to the knowledge of fair and transparent financial products and a government programmes. focus on financial literacy. In emerging economies, it is a question of both access to financial products and knowledge Review of Literature about their fairness and transparency. GOI (2008) examined financial inclusion as a delivery Need of Financial Inclusion mechanism providing financial services at an affordable cost to According to the United Nations the main goals of inclusive the vast sections of the disadvantaged and low-income groups. finance are as follows: The recommendations of the report focused on the following 1. Access at a reasonable cost of all households and areas. First, financial inclusion should include access to enterprises to the range of financial services for which they mainstream financial products. Second, banking and payment are “bankable,” including savings, short and long-term services should be available to the entire population without credit, leasing and factoring, mortgages, insurance, discrimination. Third, promotion of sustainable development pensions, payments, local money transfers and and generation of employment in rural areas should be a international remittances. priority. Fourth, financial inclusion must be taken up in a 2. Sound institutions, guided by appropriate internal mission mode and thereby suggested the constitution of a management systems, industry performance standards, National Mission on Financial Inclusion (NMFI) in order to and performance monitoring by the market, as well as by achieve universal financial inclusion within a specific time sound prudential regulation where required. frame. Fifth, the Committee also recommended for the 3. Financial and institutional sustainability as a means of constitution of two funds with NABARD - the Financial providing access to financial services over time. Inclusion Promotion and Development Fund, and the 4. Multiple providers of financial services, wherever Financial Inclusion Technology Fund for better credit feasible, so as to bring cost-effective and a wide variety of absorption capacity among the poor and vulnerable sections of alternatives to customers (which could include any the country and also for proper and appropriate application of number of combinations of sound private, non-profit and technology in order to facilitate the mandated levels of public providers). inclusion. In short, the report provided an understanding of one of the best ways to achieve inclusive growth through There has been a many objectives related to the need for financial inclusion. Kamath (2008) attempted to understand financial Inclusion such as the impact of Micro-Finance Institution (MFI) loans on daily Economic Objectives: For the equitable growth in all the household cash flows by analyzing cash inflow and outflow sections of the society leading to a reduction of disparities in patterns of borrowers of MFI and comparing with non-MFI terms of income and savings the financial inclusion can serve as households. The Financial diary methodology was used to a boom for the underdeveloped and developing nations. collect the data and to keep track of 11 months expenditure pattern (September 2008 to August 2009) of the households of Mobilisation of Savings: If the weaker sections are provided Ramanagar area, Karnataka, India, and the Principle with the facility of banking services the savings can be Component Analysis (PCA) methodology was used IIMB-WP mobilised which is normally piled up at their households can N0. 474 10 to analyze the data. The findings of the study be effectively utilised for the capital formation and growth of highlighted some critical issues. First, repayment of one MFI the economy. loan was done by using other MFI loans. Second, maximum repayment of MFI loan exceeded the average income of the Larger Market for the financial system: To serve the households (as the loans were taken before September 2008). requirements and need of the large section of society there is a Third, none of the loans were used for productive purpose surgent need for the larger market for the financial system instead they are used for consumption purpose. Fourth, the which opens up the avenue for the new players in the financial households (MFI and non-MFI) did not find right option to sectpr and can lead to growth of banking sector also. save excess liquidity. Fifth, during the preban, indebted households spent majority of income on loan repayment, food, Social Objectives: Poverty Eradication is considered to be the fuel, etc. and very little was being spent on non-food items. main sole objective of the financial inclusion scheme since they Whereas, non-indebted households spent their income on bridge up the gap between the weaker section of society and clothes, accessories, cosmetics, travel, etc. after the food the sources of livelihood and the means of income which can be expenditure. Sixth, there was a shift in the expenditure pattern generated for them if they get loans and advances. during the post ban, indebted and non-indebted households started spending more on non-staple food such as meat, A Study on Initiatives, Achievements and Progress of Financial Inclusion in India 75

snacks, rice, jewellery, medical expenses, and travel. Seventh, A brief description of each article is presented below. the expenditure pattern of households with multiple MFI's during post ban has provided the opportunity to buy more rice 1. Developments in India’s Balance of Payments during and grain. Eighth, majority of the indebted households found the First Quarter (April-June) 2010-11 difficulty in repaying the loans. As a result, multiple MFI loans This article provides details on developments in India's were taken to repay the debt. Ninth, tacit pressure was placed balance of payments during April-June 2010 (Q1). by loan officers on the group members to avoid potential default of loans. Tenth, MFI's did not adopt fare mechanism for Main Findings charging interest rates. Eleventh, MFI had lent money without The higher trade deficit combined with the lower invisibles assessing borrowers’ debt coverage ratio (credit worthiness). surplus widened the current account deficit during Q1. The In short, the MFI crisis occurred due to indebtedness of the capital account surplus increased significantly, over the households to the multiple MFI's, and MFI repayments came at corresponding quarter of last year, on account of short-term the cost of food and travel. trade credit, external commercial borrowings, external assistance and banking capital. With capital account surplus Oya Pinar Ardic et al (2011) explained that using the financial being higher than the current account deficit, the overall access database by CGAP and the World Bank group, this balance was in surplus at US$ 3.7 billion. paper counts the number of unbanked adults around the world, analyses the state of access to deposit and loan services 2. India’s External Debt: Trend, Policy Changes and Cross- as well as the extent of retail networks, and discusses the state country Comparisons of financial inclusion mandates around the world. The findings India’s external debt, as of end-June 2010, was at US$ 273.1 indicate that there is yet much to be done in the financial billion. The article also provides tables and charts on inclusion arena. Fifty-six percent of adults in the world do not various details on external debt such as External Debt have access to formal financial services. Outstanding, External Debt by Component, Currency Composition, Instrument-wise classification, Short-Term Joseph Massey (2010) said that, role of financial institutions in a Debt by Original Maturity and Residual Maturity and developing country is vital in promoting financial inclusion. cross country comparisons of external debt of select The efforts of the government to promote financial inclusion developing countries etc. and deepening can be further enhanced by the pro-activeness on the part of capital market players including financial Main Findings institutions. Financial institutions have a very crucial and a The long-term debt at US$ 215.2 billion and short-term debt at wider role to play in fostering financial inclusion. National and US$ 57.8 billion accounted for 78.8 per cent and 21.2 per cent, international forum have recognized this and efforts are seen respectively, of the total external debt. The article highlights on domestic and global levels to encourage the financial India’s external debt as of end-June 2010, provides a cross- institutions to take up larger responsibilities in including the country comparison of external debt among select developing financially excluded lot. countries, reviews recent policy measures by the Reserve Bank and Government of India for effective management of external Michael Chibba (2009) noted that Financial Inclusion is an debt, and presents some observations on India’s external debt inclusive development and Poverty Reduction strategy that stock. manifests itself as part of the emerging FI-PR-MDG nexus. However, given the current global crises, the need to scale-up 3. Inflation Expectations Survey of Households; June 2010 Financial Inclusion is now perhaps more important as a (Round 20) complementary and incremental approach to work towards The Bank has been conducting inflation expectations meeting the MDGs than at any other time in recent history. survey of households (IESH) on a quarterly basis since 2005. The present article is based on the survey round 20 The Reserve Bank’s October Monthly Bulletin carries six (quarter ended June 2010). Presently the survey is limited articles. Of particular note in this month’s issue, is the trend of to households from four major metropolitan cities and India’s external debt, with tables and charts of various external eight other major cities. The major metropolitan cities, are debt indicators. Also in this issue is the results of the Reserve represented by 500 households each while the eight other Bank’s inflation expectations survey of households in June cities are represented by 250 households each. 2010, which is done every quarter. The survey provides useful information on near-term inflationary pressures and, along Main Findings with other economic indicators, serves as an indicator of future This article presents the survey findings. It gives respondents’ inflation. The Bulletin also includes an article on the revisions perceptions of current inflation as well inflation expectations to the wholesale price index for more adequately capturing the for 3 months ahead (July-September 2010) and one year ahead current structure of the economy. (July 10-June 11).The survey findings indicate that households expect inflation to rise further by 30 and 80 basis points during next quarter (11.4 per cent) and next year (11.9 per cent) respectively from the expected current rate of 11.10 per cent. 76 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Household's expectations of general price rise is mainly per cent of fee income was by rendering banking services influenced by movements in food grains prices. High price-rise like credit related services, trade finance related services, is expected in food, housing prices and cost of service. On derivative, stock, securities, foreign exchange trading category-wise inflation expectations, housewives and daily- services and payment & money transmission services. wage workers are comparatively more consistent in the • In contrast to a small growth of 2.1 per cent by Indian inflation expectations. banks branches operating outside India, a sharp growth of 140.1 per cent has been observed in the fee income 4. New Series of Wholesale Price Index Numbers (Base generated by rendering trade in banking services by 2004-05=100) subsidiaries of Indian banks operating abroad in 2008-09. The series on Index Numbers of Wholesale Prices with • Foreign banks operating in India by rendering banking base 1993-94=100 had been in use since April 2000.A services was significantly higher at ` 10,548 crore than that Working Group was established for the revision of the of Indian banks’ branches operating abroad which WPI series (base 1993-94=100) on December 26, 2003 under generated only ` 3,012 crore of fee income. the Chairmanship of Prof. Abhijit Sen, Member, Planning • Indian banks generated major share of fee income by Commission. Based on the recommendations of the rendering banking services to non-residents while foreign Working Group, the Ministry came out with the new series banks generated major share of fee from residents. Foreign of Wholesale Price Index with the base year 2004-05=100 banks operating in India generated 93.3 per cent of fee from August 2010, on September 14, 2010. income by rendering banking services to residents during 2008-09. Main Findings • Bahrain, UK, USA, Hong Kong, UAE, Belgium, and Japan At the aggregate level, the price trend as well as inflation of were the major countries having witnessed not only the new series (base 2004-05=100) is similar to those of the old significant share in trade in banking services by the Indian series (base 1993-94). However, there are a number of banks but also had seen significant growth in trade in significant changes in the new series in terms of weighting banking services in 2008-09 over 2007-08. diagram, coverage, and price collection mechanism. There is a • The amount accrued to India was more than the amount reduction in the weight of ‘Primary Articles’ by 1.9 percentage accrued to foreign countries like Bahrain, Bangladesh, points. On the other hand, weights of ‘Fuel and Power’ and Belgium, Japan, Singapore, Sri Lanka, UAE etc., during ‘Manufactured Products’ have gone up by 0.7 percentage 2008-09, whereas the amount accrued to other countries points and 1.2 percentage points, respectively. In terms of was higher than the amount accrued to India in case of coverage, the number of commodities in the new series has USA, UK, Hong Kong, Germany, Oman, France etc. gone up significantly to 676, as compared to 435 commodities of the earlier series. Further, in order to ensure a better Objectives of Study representation of price, the number of price quotations has also increased significantly to 5482 from 1918 price quotations of 1. To explore the need and significance of financial inclusion the old series. The latest WPI revision to the base year 2004- for economic and social development of society. 05=100 is a welcome development and will be better 2. To analyse the current status of financial inclusion in representative of overall inflation of the economy. Indian economy. 3. To study the access of rural people to bank branches and 5. International Trade in Banking Services: 2008-09 the number of ATM opend in those areas. The survey on International Trade in Banking Services for the reference period 2008-09 was conducted by the Research Methodology Reserve Bank of India in continuation of earlier surveys The research design of this research work is descriptive in for 2007-08 and 2006-07. The article based on the survey nature. The data has been collected from secondary sources i.e. results is being published in October 2010 issue of RBI with the help of Books, Magazines, Newspapers, Research bulletin. The main findings of the survey are: Articles, Research Journals, E-Journals, RBI Report, Report of NABARD etc. The study is based on secondary data. Main Findings Secondary data has been collected through reports and • In all 134 branches and 99 subsidiaries of 14 Indian banks statistics from Reserve Bank and Ministry of Finance. In operating abroad and 289 branches of 29 foreign banks addition to the above data and information, print and operating in India had responded to the survey. electronic media including the information available on • The amount accrued to India by Indian banks’ operations various websites has been used extensively on secondary data. in various countries was at `4,255 crore in 2008-09. Out of Mathematical and statistical tools such as percentage, trend `4,255 crore, `3,012 crore (70.8 per cent) fee income was analysis etc. have been used to complete the purpose of the generated by 134 branches of Indian banks operating study. The use of tables, charts, graphs etc., have also been outside India and remaining `1,243 crore (29.2 per cent) made where ever they are needed and necessary for clarity of belongs to 99 subsidiaries of Indian banks operating thoughts, easy understanding and to make the presentation of abroad. research more simulative. • Fee income generated by the Indian banks’ branches operating abroad increased by 2.1 per cent from ` 2,950 crore in 2007-08 to ` 3,012 crore in 2008-09, of which 93.0 A Study on Initiatives, Achievements and Progress of Financial Inclusion in India 77

Data Analysis and Interpretation India into the mainstream. One of the best ways to attain inclusive growth is through financial inclusion. RBI and Current Status for Financial Inclusion in India Government both is taking initiatives to achieve inclusive In India, financial inclusion first featured in 2005, when it was growth through Financial Inclusion. introduced by K C Chakraborthy, the chairman of Indian Bank. Mangalam Village became the first village in India where all A snapshot of the progress made by banks under the FIPs households were provided banking facilities. Norms were (April 10 - March 13) for key parameters, during the three year relaxed for people intending to open accounts with annual period is as under: deposits of less than Rs. 50,000. General credit cards (GCCs) Nearly 2, 68, 000 banking outlets have been set up in villages as were issued to the poor and the disadvantaged with a view to on March 13 as against 67,694 banking outlets in villages in help them access easy credit. In January 2006, the Reserve Bank March 2010 permitted commercial banks to make use of the services of non- governmental organizations (NGOs/SHGs), micro-finance About 7400 rural branches opened during this period institutions, and other civil society organizations as intermediaries for providing financial and banking services. Nearly 109 million Basic Savings Bank Deposit Accounts These intermediaries could be used as business facilitators or (BSBDAs) have been added, taking the total no. of BSBDAs to business correspondents by commercial banks. The bank 182 million. Share of ICT based accounts have increased asked the commercial banks in different regions to start a 100% substantially - Percentage of ICT accounts to total BSBDAs has financial inclusion campaign on a pilot basis. As a result of the increased from 25% in March 10 to 45% in March 13. campaign states or U.T.s like Pondicherry, Himachal Pradesh and Kerala announced 100% financial inclusion in all their With the addition of nearly 9.48 million farm sector districts. Reserve Bank of India’s vision for 2020 is to open households during this period, 33.8 million households have nearly 600 million new customers' accounts and service them been provided with small entrepreneurial credit as at the end through a variety of channels by leveraging on IT. However, of March 2013 illiteracy and the low income savings and lack of bank branches in rural areas continue to be a roadblock to financial inclusion With the addition of nearly 2.25 million non farm sector in many states and there is inadequate legal and financial households during this period, 3.6 million households have structure. been provided with small entrepreneurial credit as at the end of March 2013. The Report Committee headed by Dr. C. Rangarajan (2008) on Financial Inclusion has examined that financial inclusion must About 4904 lakh transactions have been carried out in ICT be taken up as a mission and recommended a National Mission based accounts through BCs during the three year period on Financial Inclusion (NMFI) suggesting the essential policy changes and sustaining stakeholders in public domain, private It is important to analyse this progress against the some sector and NGOs in undertaking promotional initiatives. The disconcerting trends that were noticed in the run up to the Eleventh Five Year Plan (2007-12) foresees inclusive growth as its structured Financial Inclusion initiatives that the banks key objective. Inclusive growth in India is the biggest defy as it is launched since 2010 onwards. First, the number of banked very complicated to bring 600 million people living in rural centres in the country between 1991 and 2007 had actually

Steps Taken For Financial Inclusion In India: Phase Wise

PHASE I PHASE II PHASE III

Setting up Setting up of Rural of Rural Local Area Development Allowance by RBI for Cooperatives Setting up of Banks Programme BC/BF to act as RRBs agents of banks

1969 1990 2005 2011

1904 1975 1999 2000 2006

Nationalization of 14 Introduction to NPCI launched Interbank Commercial Banks Self Help Group Opening of No Mobile Payment System Frill Accounts (IMPS)

Source: rbi.org.in 78 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

come down (from 35236 to 34471). Second, the number of rural the beneficiary, thus reducing dependence on cash and branches during the same period had also declined lowering transaction costs. significantly (from 35206 to 30409). Against this backdrop, the progress made during 2010-13 is certainly remarkable. Financial Literacy Centres (FLCs): For spreading the financial literacy financial literacy centres have been established. Financial Inclusion - RBI Policy Initiatives Accordingly, 718 FLCs have been set up as at end of March RBI has adopted a bank-led model for achieving financial 2013. A total of 2.2 million people have been educated through inclusion and removed all regulatory bottle necks in achieving awareness camps / choupals, seminars and lectures during greater financial inclusion in the country. Further, for April 2012 to March 2013. achieving the targeted goals, RBI has created conducive regulatory environment and provided institutional support for Licensing of New Banks: The present round of licensing new banks in accelerating their financial inclusion efforts : banks is essentially aimed at giving further fillip to financial inclusion efforts in our country. Innovative business models Basic Saving Bank Deposit (BSBD) [No-Frills] Accounts aimed at furthering financial inclusion efforts would be looked RBI Advised all banks to open No Frills accounts with 'nil' or into closely in processing applications for banking license. very low minimum balance requirement as well as no charges Financial inclusion plan would be an important criterion for for not maintaining such minimum balance, were introduced procuring new bank licenses (Dr. D Subbarao). as per RBI directive in 2005. Kisan Credit Cards: Banks have been advised to issue KCCs to Relaxed and simplified KYC norms to facilitate easy opening small farmers for meeting their credit requirements. of bank accounts, especially for small accounts with balances not exceeding Rs. 50,000 and aggregate credits in the accounts General Credit Card: With a view to helping the poor and the not exceeding Rs. one lakh a year. Further, banks are advised disadvantaged with access to easy credit, banks have been not to insist on introduction for opening bank accounts of asked to consider introduction of a general purpose credit card customers. In addition, banks are allowed to use Aadhar Card facility up to `25,000 at their rural and semi-urban branches. as a proof of both identity and address. The objective of the scheme is to provide hassle-free credit to banks’ customers based on the assessment of cash flow without Simplified Branch Authorization Policy, to address the issue insistence on security, purpose or end use of the credit. This is of uneven spread bank branches, domestic SCBs are permitted in the nature of revolving credit entitling the holder to to freely open branches in Tier 2 to Tier 6 centers with withdraw up to the limit sanctioned. population of less than 1 lakh under general permission, subject to reporting. In North-Eastern Sates and Sikkim Business Correspondent Model: domestic SCBs can open branches without having any With the objective of ensuring greater financial inclusion and permission from RBI. increasing the outreach of the banking sector, banks were permitted by RBI in 2006 to use the services of intermediaries in Setting up of Ultra Small Branches (USBs): Considering the providing financial and banking services through the use of need for close supervision and mentoring of the Business Business Facilitators (BFs) and Business Correspondents (BCs). Correspondent Agents (BCAs) by the respective banks and to Business Correspondents are retail agents engaged by banks ensure that a range of banking services are available to the for providing banking services at locations other than a bank residents of such villages, Ultra Small Branches (USBs) are branch/ATM. BCs and the BC Agents (BCAs) represent the being set up in all villages covered through BCAs under bank concerned and enable a bank to expand its outreach and Financial Inclusion. A total of over 50,000 USBs have been set offer limited range of banking services at low cost, particularly up in the country by March, 2013. where setting up a brick and mortar branch is not viable. BCs as agents of the banks, thus, are an integral part of the business Compulsory Requirement of Opening Branches in Un- strategy for achieving greater financial inclusion. banked Villages, banks are directed to allocate at least 25% of the total number of branches to be opened during the year in un-banked (Tier 5 and Tier 6) rural centers.

Each household to have atl east one bank account: Banks have been advised to ensure service area bank in rural areas and banks assigned the responsibility in specific wards in urban area to ensure that every household has at least one bank account.

Adoption of EBT: Banks have been advised to implement EBT by leveraging ICT-based banking through BCs to transfer social benefits electronically to the bank account of the beneficiary and deliver government benefits to the doorstep of A Study on Initiatives, Achievements and Progress of Financial Inclusion in India 79

Financial Inclusion: A Cross Country Comparison

World Bank ‘Financial Access Survey’ Results GDP. From the table it is clear that Indian performance is quite From the table given above, it would be observed that in our low as compared with most of developing countries in the country, financial exclusion measured in terms of bank branch world. density, ATM density, bank credit to GDP and bank deposits to

Financial Inclusion: A Cross country Comparison

• The diagram clearly shows that US ranks top in loan to • Electronic payments are quite popular in US, UK, bottom 40% of the population, followed by Germany, UK, Germany and Brazil. In India only 2% of population makes Russian Federation, China and India. use of Electronic medium for making payments. • In the use of checks again US tops the list while India is far • Coming to mobile banking India has relatively done well behind. India’s has 6.7% of population using cheques for i.e. 2.2%, while for other countries it is much less and for making payments. three developed countries data is not available. 80 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

Position and Progress of Financial Inclusion in India Financial Inclusion in India - CRISIL INDEX (INCLUSIX) Financial Inclusion in India - CRISIL INDEX (INCLUSIX) In June 2013, CRISIL first time published a comprehensive financial inclusion index (viz.,Inclusix). For constructing the index, CRISIL identified three critical parameters of basic banking services namely branch penetration5, deposit penetration6 and credit penetration7.

• The CRISIL Inclusix indicate that there is an overall improvement in the financial inclusion in India (See Chart).

CRISIL -Inclusix (on a scale of 100) increased from 35.4in March 2009 to 37.6 in March 2010 and to 40.1 in March 2011.

CRISIL Financial Inclusion Index (Inclusix) - Region Wise

1. Scoring considers 618 districts of total 632 districts in India.

Branch Credit Deposit Penetration Penetration Penetration 2. Top 3 states : Kerala, Andhra Pradesh, Himachal Pradesh

3. Bottom 3 states : Bihar, Assam, West Bengal

4. 11 of Kerala’s 14 districts figure in the top 50 scoring district

INCLUSIX SCORES 5. The Financial Inclusion in India 62.2 has increased by CAGR of 7% 38.2 from 2008 to 2013. 37.1 28.6 6. Future potential may be seen 28.5 due to rise in tele-density (grew 40.1 from 1% to 40% between 2001 *Data as per 2011-12 to 2010)

Source: CRISIL Inclusix 2013, rbidocs.rbi.org.in

Index of Financial Inclusion - RBI work. Paper (2011) A Study on Initiatives, Achievements and Progress of Financial Inclusion in India 81

Progress of Financial Inclusion in India - Some previous census 2001, availing of banking services increased Selected Indicators significantly largely on account of increase in banking services in rural areas. Position of Households availing Banking services Branches of Scheduled Commercial Banks As per census 2011, only 58.7% of households are availing banking services in the country. However, as compared with

In rural areas, the number of branches increased from 30,572 to more rapidly i.e. From 15274 during March 2006 to 27219 in 37,953 during March 2006 to March 2013. As compared with march 2013. rural areas, number of branches in semi-urban areas increased Villages Covered:

The number of banking outlets in villages with population more than 2000 as well as less than 2000 increased consistently since March 2010 . 82 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

The number of ICT-based transactions through BCs increased from 26.52 million in March 2010 to 250.46 million in March 2013, while transactions amount increased steadily from Rs.6.92 billion to Rs.233.88 billion during the same period.

Chart 10: ATM Network - By Population Group

The number of BSBD accounts opened increased from 73.45 million (25%) in March 2010 to 182.06 million (45%) in March 2013.

Banks have been advised to issue KCCs to small farmers for meeting their credit requirements. Up to March 2013, the total number of KCCs issued to farmers remained at 33.79 million. Conclusion

Financial inclusion and inclusive growth are no longer just policy choices, but are policy imperatives, which would determine the long-term financial stability and sustainability of the economic and social order, going forward. Financial inclusion is the road which India needs to travel towards becoming a global player. An inclusive growth will act as a source of empowerment and allow people to participate more effectively in the economic and social process. We need to ensure that all of us are collectively willing to walk that extra mile to ensure that our fellow countrymen get easy access to the Up to March 2013, banks had provided credit aggregating to financial system and are able to leverage this access to improve Rs. 76.34 billion in 3.63 million GCC accounts. their economic and social well-being. For banks, the focus has to be on building a sustainable, scalable and cost-efficient business delivery model by leveraging upon technology. Financial inclusion has been made an essential part of the banking sector policy in India. RBI is furthering financial inclusion in a mission mode through mishmash of strategies like liberalization of regulatory guidelines, innovative products, encouraging use of technology for achieving sustainable financial inclusion. Financial inclusion is the entryway for achieving inclusive growth in India. All the commercial banks including cooperative banks are vigorously involved in financial inclusion process through opening of new branches in rural and urban areas. A Study on Initiatives, Achievements and Progress of Financial Inclusion in India 83

References 10. Sarkar A.N (2013), “Financial Inclusion: Fostering Sustainable Economic Growth in India”, The Banker, Vol. VIII, No.4, pp.44- 1. Chakrabarty K.C (2011), “Financial Inclusion and Banks: 53. Issues and Perspectives”, RBI Bulletin, November, 2011. 11. Sarkar A.N (2013), “Financial Inclusion Part-II: Fostering 2. Chakrabarty K.C (2011), “Financial Inclusion: A Road India Sustainable Economic Growth in India”, The Banker, Vol. VIII, Needs to Travel”, RBI Bulletin, November, 2011. No.5, pp.32-40. 3. Chakrabarty K.C (2013), “Financial Inclusion in India: Journey 12. Status of Microfinance in India: 2010-11, NABARD So Far And the Way Forward”, Key note address at Finance 13. Dr. Vighneswara Swamy and Dr. Vijayalakshmi, Role of Inclusion Conclave Organised by CNBC TV 18 at New Delhi. Financial Inclusion for Inclusive Growth in India- Issues & 4. Radhika Dixit and M. Ghosh (2013) “Financial Inclusion For Challenges, 2010. Inclusive Growth of India - A Study”, International Journal of 14. FICCI Report on Promoting Financial Inclusion, 2013. Business Management & Research, Vol.3, Issue 1, pp. 147-156. 15. “Measuring Financial Inclusion”, Policy Research Working 5. Rangarajan C (2008), “Report of the Committee on Financial Paper, 6025, World Bank. Inclusion” 16. RBI Annual Report 2011-12 (p. 88-92) , Indian specific survey 6. Raghuram G. Rajan (2009), “A Hundred Small Steps - Report findings as per the World Bank’s policy Research Working paper of the Committee on Financial Sector Reforms”. and latest status of Financial inclusion in India. 7. Reserve Bank of India - “Annual Reports and ‘Report on Trend 17. C.Paramasivan, V.Ganeshkumar Overview of Financial and Progress of Banking in India”, various issues. Inclusion in India Mandira Sarma and Jesim Pais. (2008). 8. “Financial Literacy and Consumer Protection - Necessary 18. Financial Inclusion and Development: A Cross Country Foundation for Financial Inclusion”, RBI Bulletin, May2012. Analysis, Indian Council for Research on International 9. Sadhan Kumar Chattopadhyay (2011), “Financial Inclusion in Economic Relations, pp 1-28. India: A Case-study of West Bengal”. RBI Working Paper Series, WPS (DEPR): 8/2011. The Theoretical Underpinnings of Store Loyalty: A Perspective

Dr. Manoj Kumar Srivastava*

ABSTRACT

Store loyalty has been regarded as a vital tool for achieving success in retail business and it is probably for this reason that store loyalty has been explored and examined from various viewpoints over the decades. Yet, the conceptual terrain of store loyalty and the factors which affect its shape, nature and intensity still lack clarity. Nourishing and nurturing loyalty gets even more imperative when one thinks of the economic uncertainty that prevails in almost every quarter of businesses across the globe. It is important for retailers to comprehend the concept of store loyalty and consumer behavioural factors which retain the potential of affecting and altering it favourably or unfavourably. Present study endeavours to delineate store loyalty in the context of retail industry and explore various theories of consumer behaviour in order to obtain an understanding of factors affecting store loyalty. It offers a glimpse into the theoretical realms of store loyalty with an intention to underline those behaviours and predispositions of customers which exert an impact over their the form of loyalty they display towards a retail store.

Keywords: Loyalty, Store Loyalty, Consumer Behaviour, Retail.

INTRODUCTION • Consciousness about for ethical governance of business • Willingness to save Recent times have been hard on almost all the economies of the • Tendency to switch world and countries were seen struggling to balance their economic climate by all means. Turbulence in economy of a In addition to these trends, customers’ zone of tolerance country gets most prominently evident in the drop in getting narrower, less leniency against service failures, significant facets of economy such as employment, per capita demand for personalized services are some other income and therefore, consumption. Customers’ confidence characteristics of consumer behaviour in recession. Retailers reaches at a low point where no amount of marketing efforts must identify these trends during recession as well as post- and product innovation can reinstitute their trust in the recession period since the recessionary patterns of consumer market. Such turbulent times, also known as recession, could behaviour tend to persist during recovery period and beyond take a toll on any well- established company if not managed as well. Hence, it is advisable to be aware of consumer properly. Economic recession underlines the importance of behaviour to ensure satisfactory service and to retain the strengthening customer loyalty to a remarkable extent since a loyalty of customers. customer is bound to re-evaluate their buying behaviour in the face of decreasing incomes and uncertain times. Customers are Store loyalty plays a significant role in the context of retail and also likely to develop a significantly different attitude towards other location based industries since customers are more likely their consumption related needs and decisions during to develop the habit of visiting an outlet most convenient to recession. Flatters & Willmott (2009) pointed that there are four reach at and therefore, to assess the service quality on the basis key trends which determine consumer behaviour during of their interactions with the personnel at a particular store. recession: Anic and Radas (2006); Ray and Chiagouris (2009) posited that • Customer insistence on simplicity store loyalty holds great significance in the context of retail

*Assistant Professor, Dr Virendra Swarup Institute of Professional Studies, Kanpur. Email: [email protected] The Theoretical Underpinnings of Store Loyalty: A Perspective 85

business success. Anic and Radas (2006) pointed that the which a decision making unit expresses over time and which concept of store loyalty has been examined many times during can be considered as a function of psychological (decision the last few decades but the way true store loyalty is developed making and evaluative) processes leading to brand and maintained is still an unanswered question. Thus, it is commitment. East et al. (1995) opined that store loyalty is a important to comprehend the dynamics of store loyalty in propensity to make use of the store where propensity could be order to develop and sustain the loyalty of customers who visit explained as customer‘s attitude towards store or his intention a store. The extant literature offers a number of frameworks to visit the store under favourable circumstances. Knox and which explore the conceptual domain of store loyalty and Denison (2000) described store loyalty as a customer‘s explain consumer behaviour with special reference to proclivity to patronize a particular store or store chain over customers’ loyalty towards a store. time. Anic and Radas (2006) argued that store loyalty comprises of consumer attitudes, buying intentions and real Review of Literature buying behaviour.

According to East (1997) consumers’ store loyalty can be Evanschitzky et al. (2006); Bustos-Reyes and González-Benito construed at both micro and macro levels. Macro level entails (2008) noted that most researches describe store loyalty as a countries’ retail structure, geographical characteristics and multidimensional concept consisting behavioural and cultural traditions whereas micro level covers social and attitudinal factors. Jacoby and Chestnut (1978) termed psychological factors which affect shopping. Macro variables customer‘s psychological attitude towards brand or store are generally capable of manipulating micro variables. In order attitudinal loyalty. Ehrenberg (1988) opined that behavioural to enhance the conceptual understanding of store loyalty, a loyalty can be seen in customer’s past patronage and potential comprehensive review of its theoretical realms has been repeat patronage in the future. Yavas and Babakus (2009) presented in the following sections: pointed that both, attitudinal and behavioural loyalty are significant to the understanding of customer long term Loyalty: Concept & Definition: relationships. Bustos-Reyes and González-Benito (2008) regarded loyalty as a complex concept and argued that despite being a subject of Oliver (1999); Tsai et al. (2010) identified two types of store wide investigation over the decades customer loyalty still lacks loyalty: long - term and short - run loyalty. They suggested that any best definition and measurement. Dick and Basu (1994) short - term loyalty which can be measured through word - of - perceived loyalty as an amalgamation of strong relative mouth behaviour and complaints, accompanies greater attitude and high repeat patronage. The most well accepted tendency of switching to another supplier than long - term and cited definition of loyalty was given by Oliver (1999) who loyalty which can be divided into four phases: cognitive, suggested that “loyalty is a deeply held commitment to re buy affective, conative and active loyalty. According to Reid and or re-patronize a preferred product/service consistently in the Min (2008) this model underlines the intensity of customer future, thereby causing repetitive same-brand or same brand- loyalty which should be perceived in terms of intensity level set purchasing, despite situational influences and marketing and continuity instead of categorical terms like customer efforts having the potential to causes switching behaviour” (p. purchases. 34.). According to Reichheld (2003) loyalty stands for “willingness of someone - a customer, an employee, a friend - Theoretical Frameworks of Store Loyalty: to make an investment or personal sacrifice in order to Enis and Paul (1970); Tate (1961) elaborated upon the theory of strengthen a relationship” (p. 3). He further suggested that limited resources which suggests store loyalty to be loyalty has an important role in business growth as it involves fundamentally negative and an outcome of limited resources staying with a particular supplier who offers value to a such as money, time and transport. Tate (1961) opined that customer though, not at the best available price. customers having limited choice of stores due to lack of transport are compelled to shop in single store and thus, they Anic (2006) ascertained that marketers are keen on the drivers are constrained to be loyal. East et al. (1997) argued that limited of customer loyalty and their practical usage to achieve greater earnings increase a customer’s readiness to visit more than one store performance. Ray and Chiagouris (2009); Sreedhara et al. shop to obtain best value for money leading to reduced store (2010) opined that retaining a customer demands less loyalty. marketing effort and resources in comparison to acquire a new one because a loyal customer has lower price sensitivity (Tsai et Theory of discretionary store loyalty (Dunn and Wrigley, 1984) al., 2010), and more willingness to recommend the company established that in large and all-inclusive super markets store thereby, bringing in new business (Bove and Johnson 2009; loyalty is often reflected one stop shopping which implies that Reichheld, 2003; Tsai et al., 2010). Anic and Radas (2006) noted the ownership of right resources amplifies store loyalty. East et that marketers in food retailing industry find it hard to acquire al. (1997) assumed that discretionary loyalty is an adaptation to and retain loyal customers due to low switching costs and circumstances of customer segments and this theory does not availability of several alternatives. suggest antipathies to brands and shopping. There might be a store loyalty situation which can be explained with more than Store Loyalty: one theory. For example, there may be a customer segment Bloemer and Ruyter (1998) described store loyalty as a non which is loyal to a particular store because they dislike random behavioural response to one store from a set of stores shopping (negative lifestyle theory) as well as one stop 86 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

shopping help them in reducing discomfort level reaction to waiting time at a store than men. Grewal et al. (2003) (discretionary loyal customers). Following is a brief account of advised that waiting for service in retail store might generate some of the most important theories which postulate and customer dissatisfaction thereby creating negative impact on present different standpoints of the concept and dynamics of store patronage behaviour. Retail customers tend to store loyalty: guesstimate the duration they have to wait for before deciding to wait. Baker et al. (2002); Grewal et al. (2003) informed that in Cherry Picking Behaviour: case customers feel they will have to spend a lot of time in a Fox and Hoch (2005) posited that cherry picking behaviour, a particular store, they may decide to ignore merchandise value widely practiced phenomenon among customers, can be or interpersonal service quality and steer clear of that store. described through theory of limited resources. East (1997) argued that customers with limited earnings are disposed to Undermanning Theory: patronize more than one store in order to seek out best value for Baker et al. (1992); Baker et al. (2002) explained the money. However, such behaviour diminishes store loyalty. undermanning theory as an assumption that the number of Fox and Hoch (2005) explained cherry picking behaviour as employees present in a store has an important role to play in selective buyer behaviour which determines products and determining customer‘s mood and satisfaction. Baker et al. services, their locations and prices which customers choose. (2002); Grewal et al. (2003) affirmed that undermanning takes Levy and Weitz (2004) ascertained that cherry - pickers can be place there are less than required employees in a setting to seen as price sensitive customers who buy products on function properly. Wicker (1973) suggested that number of discounts only during a store visit. Fox and Hoch (2005) employees in a store manipulates customer‘s perceptions of suggested that customers with higher switching tendencies get personal service quality and consequently, their responses. more cherry picking opportunities than those who choose to Grewal et al. (2003) this framework implies that number of remain loyal to a particular store. He further noted that store employees should be higher in order to shorten itinerant costs of moving from store to store come out to be customers’ waiting time by assisting the store to function well. similar to the costs of store loyalty. When customer finds more employees in store, he would expect shorter and reasonable duration of service delivery Burdett and Malueg (1981); Carlson and McAfee (1984); Fox resulting in positive anticipation of waiting time. Moreover, as (2005) suggested to use multi-store shopping theory to explain put by Grewal et al. (2003), crowding has influence on cherry picking. Fox and Hoch (2005) posited that multi - store customer‘s choice of retail store as well. Crowding has two theory submits that despite getting to pay lower prices for components which include physical density, objective products after visiting multiple stores instead of a single store, situation such as number of people per area unit and negative customers’ cost of shopping increases remarkably due to psychological reactions to physical density additional store visit which involves costs such as extra planning, travel distance and time spent on shopping and Inference Theory: checking out. It implies that customers with high time costs Inference theory (Jones and Davis, 1965) works upon the might not be interested in looking for better prices. Fox and assumption that high customer density in a store results in Hoch (2005) affirmed that long shopping list is most likely to anticipation of longer waiting time in comparison to stores result in customer patronizing numerous stores because total with low density. Wang (2008) pointed that this theory can be savings of cherry picking rise in case of purchasing more items used to explain individual‘s perceptions as it suggests that in on discounts. This can be relevant for large households which order to clarify individuals’ behaviour towards an object, have a propensity to purchase large basket size and higher casual attribution can be based on behaviour caused price sensitivity. informational cues. Wang (2008) further argued that information can be inferred from the behaviour in some way Household Production Theory: when informational cues are generated from the behaviour in Baker et al. (2002) underlined the direct effects of time, effort specific situation Huber and McCann (1982); Nisbett and Ross and psychic costs on store patronage intentions. Household (1980) opined that people form inferences (attributions) about production theory (Gary, 1993) asserts that customers allot the unfamiliar things on the basis of obtainable information time, money and effort in utility producing activities due to cues such as music, crowding, décor, number of salespeople, their households’ constraints of income and available time. layout, lightening, noise, etc. According to Bitner (1992) these Baltas (2010) opined that various household production cues may affect customer‘s responses and behaviours. activities vie for the limited time out of work. This theory takes Schiffman (2008) referred to the process of making inferences monetary and non-monetary factors into consideration and about customers own or other people behaviour as attitude affirms that the most essential constraint is limited availability formation. of time as time is a vital variable in most of the customer decisions related to shopping and advantages of shopping Attribution theory activities are balanced against its time costs. Elder people may Heider (1958) asserted that attribution theory describes the visit less stores for shopping because of their desire to reduce way people assign causality to events and form their attitudes physical and mental effort which implies that they might not be on the basis of their own or other people behaviour (Schiffman, willing to visit many stores despite having lower time costs. 2008; Wang, 2008). Bitner (1990) suggested that attributions are According to Baltas (2010) from the gender point of view, people’s perception of causes behind their own behaviour, women have a tendency to seek uniqueness and lesser negative others’ behaviour or events they get to observe. Schiffman The Theoretical Underpinnings of Store Loyalty: A Perspective 87

(2008) stated that customers take help of attribution for while judging the fairness of the treatment (under-rewarded or evaluating products and services to know why a product or over-rewarded) they received in comparison to other service fulfils or does not fulfil their expectations. Attribution individuals. Bolino and Turnley (2008) reiterated that theory is applied whenever an individual questions the individuals match up their situations with other individual‘s statement or action of other people in order to determine situations while assessing fairness. Carrell and Dittrich (1978); whether other persons’ motives are favourable to him or not. Bolino and Turnley (2008) posited that inequity crops up when Finding other person‘s motives favourable results in his own ratios are uneven resulting in an experience involving response being favourable and vice versa. Schiffman (2008) cognitive dissonance. Bolino and Turnley (2008) noted that further stated that customer attributes successful performance individuals find motivation to act in the need to restore equity. or failure either to product or service, to themselves, to other The key components of equity theory are inputs (contribution), people, to particular situation or to some group of those factors. outcomes (rewards), referent others (individuals with whom Attributions towards others take place when customer holds individual compare their ratio of outcomes to inputs), equity other person responsible for positive or negative product or evaluations (comparison that individuals undergo to find out service performance. Weiner (1985) posited that people whether they perceive themselves to be in equitable or embrace impulsive casual thinking especially in unanticipated inequitable situation); and reactions to inequity (behavioural and negative cases. Bitner (1990) categorized the attribution or psychological actions of individuals to restore equity). causes into three dimensions: locus (responsible party), control (responsible party’s control over particular case) and stability Sirohi (1998) argued that customers’ perceptions get affected (likelihood of repeat occurrence). This can be witnessed in case with competing alternatives also and thus, an increase in value of service failure where, as put by Harvey and Weary (1984), for money of competing stores lead to a drop in customers’ lack of explanation leads customers to attribute greater control perceptions of value for money in the main store and to the firm. Bitner (1990) pointed that employee‘s offer to consequently, their store loyalty. Sirohi (1998) pointed that recompense customer for service failure may affect attribution. stores operating in highly competitive retail environments Such an offer may make customer think that company is may witness higher impact of value perception on store loyalty concerned with its customers and takes responsibility of not intentions in comparison to store in less competitive retail letting such failures happen again. Brown (2004) noted that environments which means the higher the competitive attribution theory implies that high expectations result in high intensity, the stronger the impact of value perception on store level of satisfaction as a customer experience higher loyalty intention. satisfaction under the perception of being successful in achieving a price reduction. Conclusion

Stimulus - Organism - Response Theory: A retailer’s most important tool against competitive pressures According to Mahrabian and Russells (1974) stimulus - of the industry is his customers’ loyalty towards his products, organism - response theory is based upon the assumption that services and store. Since retailing is one of those industries the effect of physical environment remains mainly affective where location plays a remarkably significant role, customer and badly designed store environment decreases the shopping loyalty often gets translated into store loyalty in retail business. pleasure while incurring physic costs to the customers. They Formation of store loyalty has often been considered a complex presented a theoretical model of store atmosphere effects on process due to the involvement of several factors ranging as shopping behaviour. Donovan (1982) posited that retail setting wide as from macro factors such as cultural sentiments to micro can be described using relevant behaviour Stimulus - ones like store ambience and customer’s own resources. Organism - Response paradigm. Mehrabian and Russell (1974) Limited resources result in customers engaging into cherry asserted that all responses to environment can be classified as picking behaviour which adversely affects their store loyalty either approach or avoidance behaviours. Donovan (1982) intentions to a considerable extent. Income and time related noted that approach can be understood as a wish or willingness constraints have to be taken into account while examining the to stay in particular environment (physical approach), explore level of loyalty towards a store as a customer tends to offset the it (exploratory approach), and communicate with the others limited availability of time with choosing to visit same store present in that environment (communication approach) over and over again in order to save the time spent in searching whereas avoidance is a desire to escape an environment and trying out multiple stores. (physical avoidance), tendency to evade moving though environment or remain uninterested within environment Another factor which has the potential to affect the customers’ (exploratory avoidance), tendency to stay away from store loyalty is adequate number of employees in the store who interaction with others within environment or avoid others’ can reduce their waiting time thereby improving their overall attempts at communication (communication avoidance). shopping experience. However, crowding in terms of Donovan (1982) pointed that degree of approach or avoidance customers may reduce the willingness to shop in a particular of performance, and satisfaction with task performances are store as customers tend to anticipate higher waiting time in performance and satisfaction approach and avoidance. case of a store already crowded with customers. It happens due to individuals’ tendency to draw inferences about unavailable Equity Theory: information from the information cues available in the According to Equity theory (Adams, 1965) individuals environment. Failure is an unavoidable part of any business evaluate numerous factors considered as inputs and outcomes and so is the case with retail stores. However, timely actions of 88 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

recovery may result in customer attributing failure to the 16. Donovan R.J. & Rossiter J.R. (1982). Store Atmosphere: An situational factors beyond the control of the store. Store loyalty Environmental Psychology Approach. Journal of Retailing, Vol. also depends on the physical ambience of the store and 22, pp. 34 - 56. customers’ perception of value they receive from a particular 17. Dunn R. & Wrigley N. (1984). Store Loyalty for Grocery store. Products: an Empirical Study. Area,Vol. 16 No. 4, pp. 307-314. 18. East R., Harris P., Lomax W., Willson G. & Perkins D. (1997). References First-Store Loyalty to US and British Supermarkets. Kingston University, Kingston Business School. Occasional Paper Series 1. Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz No 27., Vol.19. (Ed.), Advances in experimental social psychology (pp. 267- 19. East, Robert, Harris, Patricia, Willson, Gill & Wendy Lomax 299). New York: Academic Press. (1995). Loyalty to supermarkets. International Review of Retail, 2. Anic, I.D. & Radas S. (2006). The Role of Satisfaction and Distribution & Consumer Research, Vol. 5, No. 1, pp. 99-109. Demographic Factors in Building Store Loyalty. Privredna Jacoby, J. & Chestnut, R.W. (1978). Brand Loyalty: kretanja i ekonomska politika, Vol. 19, pp. 67-86 Measurement and Management (John Wiley & Sons, New 3. Baker J., Levy M. & Grewal D. (1992). An Experimental York) Approach to Making Retail Store Environmental Decisions. 20. Ehrenberg, A.S.C. (1988). Repeat Buying Facts, Theory and Journal of Retailing, Vol. 16, pp. 446-460. Applications, New York: Oxford University Press. 4. Baker, J., Parasuraman, A., Grewal, D. & Voss, G.B. (2002). 21. Enis, B. M. & Paul, G. W. (1970). Store loyalty as a basis for The influence of multiple store environment cues on perceived market segmentation. Journal of Retailing, Vol. 46, No. 3, pp. merchandise value and patronage intentions, Journal of 42-56. Marketing, Vol. 65, pp. 120-141. 22. Evanschitzky, H., Gopalkrishnan, R.I., Plassman, H., Niessing, 5. Baltas G., Argouslidis P.C. & Skarmeas D. (2010). The Role of J. & Meffert, H. (2006). The relative strength of affective Customer Factors in Multiple Store Patronage: A Cost-Benefit commitment in securing loyalty in service relationships. Approach. Journal of Retailing, Vol. 86, pp.37-50. Journal of Business Research, Vol. 59, pp. 1207-1213. 6. Bitner, M.J. (1990). Evaluating service encounters: The effects 23. Flatters, P. & Willmott, M. (2009). Understanding the post- of physical surroundings and employee responses. Journal of recession consumer. Harvard Business Review, Vol. 7 No. 8, pp. Marketing, Vol. 54 (April), pp. 69–82. 106-112. 7. Bitner, M.J. (1992). Servicescapes: the impact of physical 24. Fox J. & Hoch S.J. (2005). Cherry-Picking. Journal of surroundings on customers and employees. Journal of Marketing, Vol. 18, pp. 46-62. Marketing, Vol. 56, pp. 57–71. 25. Gary S. Becker (1964, 1993, 3rd ed.). Human Capital: A 8. Bloemer J. & Ruyter K. (1998). On the relationship between Theoretical and Empirical Analysis, with Special Reference to store image, store satisfaction and store loyalty. European Education. Chicago, University of Chicago Press. Nisbett, R. E. Journal of Marketing, Vol. 14, pp. 499-513. & Ross, L. (1980). Human inference: Strategies and 9. Bolino M.C. & Turnley W.H. (2008). Old faces, new places: shortcomings of social judgment. Englewood Cliffs, NJ: Prentice equity theory in cross-cultural contexts. Journal of Hall. Jones, E. E. & Davis, K. E. (1965). From acts to Organizational Behaviour, Vol. 18, pp. 29-47. dispositions: the attribution process in social psychology, in L. 10. Bove L.L. & Johnson L.W. (2009). Does -true personal or service Berkowitz (ed.), Advances in experimental social psychology, loyalty last? Journal of Services Marketing, Vol. 23, No. 3, pp. (Vol. 2, pp. 219-266), New York: Academic Press. 187–194. 26. Grewal D., Baker J., Levy M. & Voss G.B. (2003). The effects of 11. Brown, S.P. (2004). Determinants of loyalty to grocery store wait expectations and store atmosphere evaluations on type. Journal of Food Products Marketing, Vol. 10 No. 3, pp. 1- patronage intentions in service - intensive retail stores. Journal 11. of Retailing, Vol. 9, pp. 259-268. 12. Burdett, K. & Malueg, D. A. (1981). The Theory of Search for 27. Harvey, J.H. & Weary, G. (1984). Current issues in attribution Several Goods. Journal of Economic Theory, Vol. 24, pp. 362- theory and research. Annual Review of Psychology, Vol. 35, pp. 376. Carlson, J. & McAfee, R.P. (1984). Joint search for several 427-459. Weiner, B. (1985). An attributional theory of goods. Journal of Economic Theory, 32, pp. 337-345. East, R. achievement motivation and emotion. Psychological Review, (1997). Consumer behaviour: Advances and applications in Vol. 92, pp. 548 - 573. marketing. Prentice-Hall, London. 28. Heider, F. (1958). The psychology of interpersonal relations. 13. Bustos-Reyes C.A. & González-Benito O.B. (2008). Store and New York: Wiley. store format loyalty measures based on budget allocation. 29. Huber, J. & McCann, J. (1982). The impact of inferential beliefs Journal of Business Research, Vol. 10, pp. 1015–1025. on product evaluations. Journal of Marketing Research, Vol. 14. Carrell, M.R. & Dittrich J.E. (1978). Equity Theory: The Recent XIX (August), pp. 324-333. Literature, Methodological Considerations, and New 30. Knox, SD & Denison, TJ (2000). Store loyalty: its impact on Directions. Academy of Management Review, Vol. 8, pp. 202- retail revenue: an empirical study of purchasing behaviour in the 210. UK. Journal of Retailing Consumer Services, Vol. 7, pp.33-45. 15. Dick, A.S. & Basu, K. (1994), Customer Loyalty: Toward an 31. Levy, M. & Weitz, B. (2004). Retailing Management. 5th Integrated Conceptual Framework. Journal of the Academy of edition. Boston: McGraw-Hill. Marketing Science, Vol. 22, pp. 99-113. 32. Mehrabian, A. & Russell, J. A. (1974). An approach to environmental psychology. Cambridge, MA: MIT Press. The Theoretical Underpinnings of Store Loyalty: A Perspective 89

33. Oliver Richard L. (1999). Whence Consumer Loyalty? The 40. Tate, Russell S. (1961). The Supermarket Battle for Store Journal of Marketing, Vol. 63, pp. 33-44. Loyalty. Journal of Marketing, Vol. 25 (6), pp. 8-13. 34. Ray I. & Chiagouris, L. (2009). Customer retention: examining 41. Tsai Ming-Tien, Tsai Chung-Lin & Chang Han-Chao (2010). the roles of store affect and store loyalty as mediators in the The Effect of Customer Value, Customer Satisfaction, and management of retail strategies. Journal of Strategic Marketing, Switching Costs on Customer Loyalty: An Empirical Study of Vol. 17, No. 1, pp. 1–20. Hypermarkets in Taiwan. Social Behavior & Personality: An 35. Reichheld, F.F. (2003). The One Number You Need to Grow. International Journal, Vol. 38 Issue 6, pp. 729-740. Harvard Business Review, Vol. 11, pp. 1-11. 42. Wang Y.J. (2008). The Application of Attribution Theories in 36. Reid A. & Min M.K. (2008). What Drives Loyalty? Why Marketing Research: A Critique. Review of Business Research, customer satisfaction isn‘t the end game. RKM Research and Vol. 8, pp. 174-180. Communications, Vol. 9, pp. 1-9. 43. Wicker, A (1973). Undermanning Theory & Research: 37. Schiffman L.G., Kanuk L.L. & Hansen H. (2008). Consumer Implications for the Study of Psychological Behavioral Effects of Behaviour: A European Outlook, The Consumer as an Excess Human Populations. Representative Research in Social Individual, Self and Self-Image. Pearson Education, pp. 67-281. Psychology, Vol. 4, pp. 185 – 206. 38. Sirohi, N., McLaughlin, E.W. & Wittink, D.R. (1998). A model 44. Yavas U. & Babakus E. (2009). Retail store loyalty: a of consumer perceptions and store loyalty intentions for a comparison of two customer segments. International Journal of supermarket retailer. Journal of Retailing, Vol. 74, pp. 223–245. Retail & Distribution Management, Vol. 37, No. 6, pp. 477-492. 39. Sreedhara, R., Babu, K. Nagendra (2010). Factors influencing store loyalty – a conceptual approach on supermarkets. Global Management Review, Vol. 4, Issue 2, pp. 37-42. Evolving Dynamics of Social Media in Indian Political Paradigm

Amit Kumar* Prof. (Dr.) Somesh Dhamija** Dr. Aruna Dhamija***

ABSTRACT

This research papers delves on the issue which separated the election to the sixteenth Lok Sabha held during April-May 2014 from its predecessors for electing the central government with regard to the extensive use of social media by various parties, albeit with varying effects and its overall impact on the final results. The winning coalition of NDA, and in that too its main party Bharatiya Janata Party, was at the helm of affairs in the usage of social media with much fervor. Here too, the prime-ministerial candidate of NDA, namely Mr Narendra Modi, redefined the way in which people looked up to social media when it came to influencing the general election and the subsequent results. He took to the internet in an unprecedented manner and was known for being omnipresent in whichever platform one can imagine in the virtual world. The online blitzkrieg as practiced by him has few parallels in contemporary political world. The whole world sat up and took notice of what he was doing during the election and more importantly rewriting the rule-book for those who saw election as an occasion which they could win riding on the might of the ‘offline’ electorate rather than the ‘online’ one.

The research paper would also explore the various patterns which formed and trends which took shape during the election and how they played a significant role in it. After going through this paper, one should be in a position to gauge the importance which could be associated with the usage of social networking and how it proved to be a ‘game changer’ in the annals of Indian polity and rewrote the rules of the game that nothing could be taken for granted any more.

Keywords: Lok Sabha Election, Narendra Modi, Rahul Gandhi, Social Media/Networking, BJP, Congress, Facebook, Twitter

INTRODUCTION which is the avid user of it) is proven and does not need much vindication. The role of social media in a general election of a democracy has been a topic of discussion for the past few years, more so after Role of social media in Obama’s reelection in 2012- ‘Millions of the phenomenal rise of such social networking behemoths like fans on Facebook and Twitter actually helped him to prove his facebook, twitter, google plus, youtube, linkedin, tumblr, mandate online as well as offline. And 80% of his $639 million pinterest, instagram, etc. In fact, the significance which one donations came via online channels. Nothing is impossible in associates with the first two giants namely facebook and this age of connected economy’ (trak.in dated April 14, 2013) twitter was always felt but more so since the 2008 presidential election of U.S. where Barack Obama used these two platforms However, U.S. being a developed nation and the world’s oldest much to his benefit to connect with the ‘connected’ electorate democracy, having a relatively less population of 319 million and pushed for his ideas successfully in an much effective way (as compared to India), though third-largest in the world, with then his competitor (John McCain). mostly homogeneous, aware, prosperous populace; the popularity, reach and impact of internet and specifically social Although in his 2012 re-election, social networking as an media and their effective usage by politicos for driving their effective tool for political campaigning and enhancing political point home was something which experts never doubted. The participation was no longer a novel idea as his opponent (Mitt official pages of the two presidential nominees were inundated Romney) took the internet by force on similar lines, still he with the comments from their supports as well as distracters. won. This goes on to prove that the role of social media in They had an army of online experts who handled these swaying the verdict (especially by the younger generation activities adroitly.

*Assistant Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh. Email: [email protected] **Head-Management (U.G. Programmes) Institute of Business Management, GLA University, Mathura, Uttar Pradesh. Email: [email protected] ***Associate Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh. Email: [email protected] Evolving Dynamics of Social Media in Indian Political Paradigm 91

At the same time, the efficacy which this phenomenon could true for a nation like US where majority of the voting populace have on a developing nation, namely India, the largest is connected online and are active as well. The same could be democracy in the world, a heterogeneous nation of approx. said about India also. The cost of updating one’s status, liking 1.26 billion people, the second-largest in the world, was or commenting is practically zero when one takes into account debatable till as early as the election to the last Lok Sabha which the other modes of communication. took place in 2009. So much so that none of the two major competing coalitions, namely UPA (United Progressive Fourthly, social media is a great leveler. No one is too big or too Alliance) or NDA (National Democratic Alliance) paid much small on it. The success of a new party like AAP (Aam Aadmi heed to the social media not realizing well the political mileage Party) can be majorly attributed to its widespread presence on which they could derive from it. social media which it used smartly to be heard by the connected people. Despite being a novice in the arena of However, all this changed tectonically in the Lok Sabha politics, Mr Arvind Kejriwal and others of his ilk understood election of 2014 which was conducted over a period of two the power of this effective tool and used it to drive their point months, namely April-May, 2014 in seven phases across the home. It might come as a surprise but for the majority of the last length and breadth of the nation. The frequency, scale, lok sabha election campaign, the second highest followed magnitude, extent, efficacy, reach, impact of social media in politician on social media was not Rahul Gandhi but Arvind this election was unprecedented and unheard of, a legend Kejriwal. This could not be thought about any other medium of having few parallels in modern world politics. reaching out to the general public be it advertising or TVCs. AAP didn’t have the means to match the might of the big The 2014 election to Lok Sabha in India saw 227 million parties when it came to expending on their electoral comments, exchanges and conversations on facebook alone, campaigns, but they had a pulse on the mood of those who the highest ever associated with a political event. It was later used social media extensively. What it lacked offline, it upended by the Brazil election. (Source: Facebook's director of compensated with its online presence. institutional relations in Brazil, Bruno Magrani as quoted on rappler.com). Such was the magnitude and impact of the social Fifthly, it is the most appealing and engaging platform for the networking on the election. youth. This holds particularly true of democracies like U.S. where out of a population of 319 million, young people (18-29) Why Social Media? made up 21% of the voting eligible population of US (civicyouth.org). This is the segment which is mostly The politicians who vouch for the social media as an effective connected online and quite vocal about their preferences on the tool to connect with the electorate have many points various online platforms. An experiment in the US found that a supporting their argument. reminder to vote combined with photos of the friend who had voted lifted turnout by around 3,00,000 votes, or 0.6%, among First of all, its reach is wide. This is particularly true for the those who saw it. (Source- Social Samosa, Oct 31, 2013). This developed nations where the social media is accessible to a goes on to show the effectiveness of social media in swaying major segment of the population, through various devices. the way people vote and are influenced by others while they Majority of the population in such countries is connected most vote. of the time. The ‘Connected’ Indian Secondly, it is mostly unbiased and presents a true picture of the mood of the electorate. This holds ground because people Out of the 243 million internet users in India, approx. 106 use this platform as they wish. The scope of influencing the million are active on social networking platforms like social media is relatively less compared to print media, facebook, twitter, linkedin, youtube, instagram. When broadcasting, OOH (Out Of Home) and other sources of compared to an electorate of around 834.2 million, such a spreading information. Paid media is something with which number might not look impressive at the first glance but we social media doesn’t resemble much. This is not to say that need to understand that the impact which social media social media cannot be influenced at all. But the extent of doing commands stretches beyond those using it and percolates to the same is limited because people interact with each other on a others as well. constant basis and that too in first-person mode. The validation of a claim is almost instantaneous and receives lot of attention, To score the point home, it should be kept in mind that India is both for the right as well as wrong reasons. This could be home to the third-largest internet user group in the world understood from the scenario where we trust the comments (behind China & USA) (Source: internetlivestats.com). made by our friends/acquaintances on various social media platforms about a product more than the reviews of the As per IAMAI, for every 10 of the urban voters, almost 4 of experts, be it with regard to movies, gadgets, appliances, food them are online. This figure is 37% of the urban population. articles, what not! This indeed is an impressive number keeping two facts in mind- first approx. two-third of the Indian population is below Thirdly, it is one of the cheapest media to connect with the the age of 35 years. Majority of the city-dwellers, especially the electorate on a large scale, provided the online population is a metro-residents, belong to this class. Secondly, the rising major fraction of the voting population. This holds particularly middle class of this nation resides in one of these urban centers 92 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015 of development and they understand the impact of social Social Networking and Political Parties/ Leaders media in shaping up the political views in a democracy, India being a fine example of it. The urban voter is aware of the Today, various social networking sites are playing a vital role happenings around the globe and is a connected universal in the promotion of cause of politicos of India in the form of citizen for whom the entire world is her/his oyster. various virtual interactions which were not fathomable even five years ago. National as well as regional leaders have The major user base of social media in urban locations are understood the significance and power of online youngsters, college-going students as well as office-goers in connectedness. the age group 18-35 who keep their kith and kin posted about the various activities as the day unfolds. Not to be left behind, The US Democrats inspired the Indian political parties to an the working women are increasingly tilting towards social extent during this election. Online media played a crucial role media usage and raise awareness level of others about the same in terms of sourcing the stories of supporters by asking them in every possible way. There are many interesting usages of for the same via campaign mailing lists. Once they were social media pages. One such being of frequent travelers who available, the same were changed to video and audio clips and have connected nationwide through a facebook page where the circulated with a wider audience to strike a chord. members share their traveling plans in advance so that those hailing from the city which the traveler plans to visit make sure Majority of the leaders have their official facebook pages where that s/he gets the right deal and go all the way even hosting they invite suggestions from the voters. The MLA of the them at their own houses thus taking the visitor’s experience Mathura Vrindavan constituency, Mr Pradeep Mathur, where altogether to the next level. People regularly update their pals the authors currently reside, keeps on his voters posted on about such situations as traffic jams, water clogging, inclement various activities which concern them and updates his status weather with the help of social media. Such is the might of this on a regular basis through his official page on facebook thus platform. being better connected than any other means. He invites suggestions and advice from the people of Mathura-Vrindavan As per a survey conducted by Google during the pre-poll as to how this place could be made a better one. phase, ‘social media can have an impact on around 30% seats in Lok Sabha Election 2014’. That’s more than 150 seats. He is not alone in taking this initiative. Score of politicians have Though it might have seemed a bit exaggerated to some, the taken to the internet in a big way and are known by their importance of the online media could not be undermined in following. In fact, the incumbent BJP-led NDA government has any way in the changing landscape of the populace. This line issued special directives for its ministers to be more accessible itself highlights the significance which one can attach with the to the people by connecting with them online. The PMO (Prime growing popularity as well as importance of social media as an Minister’s Office) has, of late, been known for making its effective tool for connecting with the electorate in a huge way. policies public through its official twitter handle and facebook page more than any other medium thus underlining the However, many people question the very idea of it owing to the growing impact of this powerful media. fact that being a facebook user doesn’t necessarily mean being a voter. Their reservation against the online media is that In the build-up to the election, Mr Narendra Modi and Mr majority of those belonging to the sub-18 age group are also Rahul Gandhi were the most looked-for political figures active on these online platforms owing to the rather lack of online. However with time, Rahul Gandhi started lagging and checks on verifying the age of those logging -n on these was never able to catch with Narendra Modi. AAP’s Arvind websites, the minimum age for registering on these websites Kejriwal was also popular among the netizens as he practiced being 18 years, which is also the legal age for those who can guerilla social media marketing. vote in this country.. Plus, there was apprehension with regard to the fact that even those who are genuine in terms of being As per a report available on IndiaToday.in dated April 13, 2014, above 18 would be as enthusiastic to go out and vote on the D- in terms of having followers on the popular microblogging site day in the same vein as they vehemently support any cause twitter, Mr Narendra Modi was the 'most-followed' Indian online. It is one thing to ‘like’ or ‘poke’ or ‘retweet’ and an politician. The margin for the same was well above one-and-a- entirely different ball game to turn up at a polling station half million. NaMo was followed by Congress leader Shashi braving the heat (the elections took place in April-May when Tharoor. AAP leader Arvind Kejriwal came third. Rahul heat wave is a common phenomenon in most regions of the Gandhi was conspicuous by his absence. country), long queues (the young generation being a restless one and thriving on the ‘instant noodles’ culture), etc. Congress setup Rs 100 crore war chest to counter BJP’s online moves. They were right to an extent, yes. But at the same time the record turn outs in almost each constituency of every state, As per a report available on IndiaToday.in dated April 13, 2014, most of these doubts were put to rest as was the questioning of BJP's prime ministerial candidate Narendra Modi was the the effectiveness of social media as a tool to influence the 'most-followed' Indian politician on Twitter by a wide margin electorate with never-before numbers which made even the of over 15 lakh followers. NaMo was followed by Congress staunch critics sit up and take notice of this phenomenon which leader Shashi Tharoor. AAP leader Arvind Kejriwal came took the entire country by storm. third. Rahul Gandhi was conspicuous by his absence. Evolving Dynamics of Social Media in Indian Political Paradigm 93

The Facebook Election Tracker sums up the story well for Similarly, a Hyderabad-based start-up started Smartur elections in India - BJP and Narendra Modi topped the chart, (www.smartur.com) for school students, which used a four- while INC stood behind the newbie Aam Aadmi Party on the stage infotainment process -- Fun Election Contest, Fun Facts, last day of the election. This is something unimaginable in the Fun PM Test and Children's Manifesto. The purpose was offline world what with a one-year old party trouncing the simple. Garner interest in the future electorate of the nation and supremacy as well as the legacy of the Grand Old Party of make them realize their responsibility and role in the India, whose illustrious history dates back 125 years. AAP may government-selection process in future. not have been able to stand up to either BJP or INC in terms of expenditure on posters, pamphlets, goodies, bill-boards, Be it Google's 'pledge to vote' campaign, Facebook's online rallies, etc. but it did prove that all are equal on the online political debates, India's homegrown personalised social platforms and ‘likes’ cannot be bought though some question media platform Vebbler’s 'the Ungli Campaign' aimed at this aspect as well. engaging youth on conversations related to various topics surrounding the election and encouraging them to vote or The general elections 2014 reemphasized the fact that we can telecom operator MTS' election tracker, firms came out with not underestimate the power of a tweet or a post in this globally innovative platforms to connect with the youth in ways which wireless connected world! Political parties need to give the were never heard of before. Over 23 million in the age group of 18- online media its due along with the traditional media in the 19 years, the core of online population, made their choices with form of having their presence on every virtual platform. This regard to government formation at the center in the lok saba alone would not suffice. They need to engage the electorate in a election of 2014. never-before way, hearing to their problems online and responding to them with much alacrity and genuineness All this was not without a reason. According to a study by because the outcome of such interactions are visible to all, a Internet and Mobile Association of India (IAMAI) and IRIS trait which is missing in the offline interactions. Knowledge Foundation which was carried out prior to the general election, out of the cumulative 543 constituencies up Modi, from Bharitya Janta Party, gets the credit for actively for grabs, 160 were seen as such which were to be influenced by engaging on social media platforms when most of the such social media as facebook. It corroborates the finding of politicians were busy ridiculing the emerging social media Google as mentioned earlier in this research paper. tools as “waste of time” and impersonal way to connect to masses. Even Lalu Prasad Yadav, former chief minister of Also as per a report released by IAMAI before the polls, the Bihar, known for his rustic behavior, fell for Twitter. He is now increasing spend on social media could have swung almost an active twitter user keeping intact his humour on the micro- three to four percent of votes in as many as 24 states wherein blogging site. Earlier, he had criticized the use of social media those using internet were in good numbers. Data like this thus doing a volte-face on this issue, in effect bowing to the ought to be overlooked by political parties on their own peril. might of this media. In other words, they would have committed hara-kiri by ignoring such crucial figures. Again a testimony to the vital General Election & Social Media: Unprecedented in role which one saw being played by social media Reach and Impact Another IT products start-up firm FakeOff, offered an app to identify fake profiles on Facebook, and was launched to help Hi tech propaganda users identify fake likes. Influence of technology as well as tech-savvy electorate exceeded in this Lok Sabha elections in an unprecedented way, In few of the parliamentary constituencies in Gujarat, the voter bucking all trends and defying all norms. Some of the parties turnout crossed 70 %. There is no denying the fact that people, had special IT cells. To enhance the awareness of voters, young & old, are turning to popular social media platforms like political parties used technologies (social, mobile, analytics Facebook and Twitter to talk & engage on politics. and cloud). Young and tech-savvy electorate actively participated on different social media platforms. It was for the Facebook already had relatively high penetration in India, with first time that the lower and upper middle class became more 100 million active users. According to an article in Quartz “On vocal and influential because of the extensive usage of social April 30-the day that 89 of India’s 543 constituencies went to the media like Facebook, Twitter and Youtube. polls-696,000 election-related tweets were sent. Since Jan. 1, the breakdown of tweets for the various national candidates/parties has The Election Commission of India directed major social been 34% for Narendra Modi or his Bharatiya Janata Party, 27% for networking sites regarding displaying content on their Arvind Kejriwal or the Aam Admi Party, 4% for Rahul Gandhi or the respective platforms while the election was to take place in Indian National Congress.” These are impressive numbers such a way that were not "unlawful or malicious or violative of indeed and cannot be wished away even by the most die-hard the model code of conduct". The political parties had to get naysayers who doubt the online media and its effectiveness. certification from the ECI for contents before publishing them in websites. All the spending on online campaigns were a part During his victory speech in Vadodara, the parliamentary of advertising and it was mandatory for the parties to show the constituency from where Modi won by a margin of over 5 lakh same to the Commission when asked. votes, he gave due credit to role of social media in spreading 94 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015

the message of ‘ab ki baar Modi sarkaa’ far and wide. 6. Enemaku, O.S. 2003. “The Role of Political Parties in A Democracy: A Communication Perspective” in UNILAG Conclusion Communication Review, Vol. No.1. 7. Freeman, L.C. (1979), “Centrality in social networks conceptual As is evident from the discussion above and the facts and clarification”, Social Networks, Vol. 1 No. 3, pp. 215-39. figures highlighted on various occasions, the general election 8. Henneberg, S.C. (2002) ‘Understanding Political Marketing’, of 2014 for electing the sixteenth lok sabha would be in N. O’Shaughnessy and S. C. Henneberg (eds) The Idea of remembered not only for providing a clear mandate to a single Political Marketing, pp. 93–171. Westport, CT: Praeger. party for the first time in the past three decades or so. It would 9. Lees-Marshment, J. & Lilleker, D. G. (Eds.) (2005). Political also be hailed as the election in which social media found its marketing: A comparative perspective. Manchester: Manchester calling, it was given its due which it very much deserved. University Press. 10. McClurg, S.D. (2003). Social networks and political All the political parties and their leaders which were in the fray participation: The role of social interaction in explaining either realized its importance too soon (as was the case with political participation. Political Research Quarterly, 56(4), pp. 448-464. BJP, especially with its PM candidate Mr Narendra Modi and 11. Ries, A. (2008) ‘What Marketers Can Learn from Obama’s Aam Aadmi Party which, despite being only a year old, used Campaign, Advertising Age 5 (November). social media to promote their cause in a smart way) or too late, 12. Scammell, M. (1999) ‘Political Marketing: Lessons for Political much to their own chagrin. Science’, Political Studies 47(4): 718-39. 13. Singer, C. (2002), “Bringing brand savvy to politics”, As was highlighted in the initial paragraphs of this research Brandweek, Vol. 43 No. 34, p. 19. paper, social media is a great leveler in the political arena and 14. Smith, G., & French, A. (2011). The political brand: A consumer the situation was no different in the 2014 general election. No perspective. In P.R. Baines (Ed.), Political Marketing (Vols. 1- party was too big or too small as far as their appeal and 3) (pp. 1-18). London: SAGE. connectedness with the electorate was concerned provided it 15. Steger, W.P., Kelly, S.Q. and Wrighton, J.M. (2006) played its cards rightly and smartly, as was the case with the ‘Campaigns and Political Marketing in Political Science frontrunners as well as the laggards. It was only because of the Context’, Journal of Political Marketing 5(½): 1-10. uniqueness of how the social media works that the recall value 16. Stromback, J. (2007) ‘Political Marketing and Professionalized of the unofficial PM candidate of the incumbent government Campaigning’, Journal of Political Marketing 6(2/3): 49-68. took a beating online as compared to the person who made his 17. Ward, J. (2008). The online citizen-consumer: Addressing political debut less than a year ago. Even many seasoned young people’s political consumption through technology. politicians failed to up their ante as far as registering their Journal of Youth Studies, 11(5), pp. 513-526. presence online was concerned whereas the newbie netas scored the point home and vindicated the choice of the Books: connected janta by coming out triumphant. 1. Decoding Rahul Gandhi by Aarthi Ramachandran. Published by Westland Books The usage of social media acquired altogether new dimensions 2. The Election that Changed India by Rajdeep Sardesai. Published in the general election of 2014 and would be seen as a crucial by Penguin Books India Pvt. Ltd. force to reckon with in all the ensuing elections to be held in the 3. The Man of the Moment - Narendra Modi by Kamath M.V. and country, both local and central. Such has been the overall Kalindi Randeri. Published by Times Group Books. impact of social media in the political scenario of the country. 4. The NaMo Story: A Political Life by Kingshuk Nag. Published by Rangoli Books. References 5. Narendra Modi the Gamechanger by Sudesh K. Verma. Published by Vitasta Publishing Pvt. Ltd. 1. Adamson, A. P. (2006). BrandSimple: How the best brands keep 6. Narendra Modi A Political Biography by Andy Marinoa. it simple and succeed. New York: Palgrave Macmillan. Published by Harper Collins India. 2. Baines, P., Worcester, R., Jarrett, D. and Mortimore, R. (2003) 7. Rahul by Jatin Gandhi and Veena Sandhu. Published by ‘Market Segmentation and Product Differentiation in Political Penguin Books India Pvt. Ltd. Campaigns: A Technical Feature Perspective’, Journal of Marketing Management 19(2): 225. Websites: 3. Bridges, F., Appel, L., & Grossklags, J. (2012). Young adults’ 1. www.aamaadmiparty.org online participation behaviors: An exploratory study of web 2.0 2. www.afternoondc.in use for political engagement. Information Polity, 17, pp. 163- 3. www.asianage.com 176. 4. www.bjp.org 4. Chopra, S (2014), The Big Connect: Politics in the Age of Social 5. www.civicyouth.org Media, Random House India. 6. www.dilipcherian.com 5. Clark, K. A. (2004). Brandscendence: Three essential elements of 7. www.dragonflyeffect.com enduring brands. Dearborn Trade Publishing. Evolving Dynamics of Social Media in Indian Political Paradigm 95

8. www.exchange4media.com 17. www.smartur.com 9. www.facebook.com/narendramodi 18. www.socialsamosa.com 10. www.facebook.com/india.rahulgandhi 19. www.trak.in 11. www.iamai.in 20. www.tribuneindia.com 12. www.inc.in 21. www.twitter.com/aamaadmiparty 13. www.india272.in 22. www.twitter.com/narendramodi 14. www.internetlivestats.com 23. www.vebbler.com 15. www.iira.in 24. www.wholesalesceramic.com 16. www.narendramodi.in 25. www.youtube.com 96 SAMIKSHA - Volume VI, No. 1 & 2, Jan-Dec 2015 SAMIKSHA Volume VI, No. 1 & 2, Jan - Dec 2015

GUIDELINES FOR AUTHORS

We invite original empirical research papers, articles, review papers, executive experience sharing, book reviews and case studies on managerial issues and problems from functional areas of management and Information Technology for publication in our half yearly journal.

Manuscript: Two copies of the manuscript, typed in double space on A4 size bond paper allowing 1-inch margin on all sides, should be submitted with CD in MS-Word document format.

CDs are not required if the manuscript is e-mailed to the editor at email. However in this case two hard copies of the manuscript have to be sent separately. Manuscript should follow British spellings throughout. The length of a paper including tables, diagrams, illustrations, etc. should not exceed 20 double spaced pages. Short communications relating to book reviews, review articles should not exceed more than 5 double spaced pages.

Undertaking Author(s) is (are) required to give an undertaking that the manuscript sent for publication in this journal have not been published or, sent for publication elsewhere. A note about author(s) (name designation, affiliation/s) is to be sent along with the manuscript. All correspondence will be held with the first author only.

Review: All contributions submitted will be subjected to peer review. The decision of the Editorial committee will be final. First page should consist of the title of the paper name (s) of author (s) with all details and abstract not exceeding 150 words. Second page should start with the title of the paper again, followed by the text, name(s) of author (s) should not appear any where in the text from second page onward. An author will receive one – complimentary copy of the issue in which his/her paper appears.

Caption, footnotes and references In captions for tables, figures, graphs and columns heading in tables the first letter of the first word should be capitalized and all other words should be in lower case (except proper nouns). For example, Table 2: India’s trade with china. Footnotes in the text should be numbered consecutively in plain Arabic superscripts. All the footnote, if any should be typed under heading ‘footnotes’ at the end of the paper immediately after conclusion follow the author date (Harvard) system for in text reference: e.g. Rajan Saxena (1990) observed that …….A study (Raman et. al. 1995) found that …….. when it is necessary to refer a specific page(s) cited it in the text . Only cited works should be included in the ‘References’ which should appear at the end of the paper. Follow the reference citation strictly in accordance to the following Examples.

Book Ogilvy David 2005 Marketing Management Tata Mc Grow Hill Pp-30-35.

Journal Article Dr. Nilofer, Indian Journal of Marketing, Aug. 2004, ‘A study on the effect of Personality on Ad’ pp-29-35 Government Publication Report 2009-10 New Delhi Government of India, Ministry of Finance, and Department of Banking.

Chapter in a Book: Gilberto Mendoza. 1990, A Premier on marketing channels. Pages 212-230 in prices, products and people MC Graw Hill publication.

Copyright: All copyrights will be with the United Institute of Management and Authors. The authors will be responsible for copyright clearance for any part of the contents of their articles. The opinions expressed in the articles of this Journal will be those of the authors and will not in anyway affect the objectives or opinion of the UIM. Reproducing of any material published in the Journal will require prior written permission of the Editor.

All Manuscript should be sent to, The Editor Samiksha United Institute of Management UPSIDC Industrial Area, Naini, Allahabd - 211010 E-mail [email protected], Contact No. 0532-2686070

Managing Editor and Contact Person

Mr. Rohit Kumar Vishwakarma Senior Lecturer Mobile: 09794260966 E-mail: [email protected] SAMIKSHA Volume VI, No. 1 & 2, Jan - Dec 2015 FEEDBACK FORM Your valuable comments will help us shape the future issues better. Highly Somewhat Not Did Not Appreciable Appreciable Appreciable Read 1. Regulatory Developments and Its impact on Securitisation Market in India

2. Conceptual Model of Social Media Governance: Promoting Good Governance 3. Water Management in Indian Agriculture: Issues and Strategies 4. After Sale Services: An Important Aspect in Two Wheeler Automobile Industry

5. Influence of Technical Parameter on Preference of Potential Customers towards Compact SUV 6. Stress in Today’s World

7. Measuring and Understanding Consumer-based Brand Equity of Ready to Eat Products: A Study with Reference to Oats

8. Improving Security in VANET through the Position Verification of Alert Message

9. E-retailing: Challenges and Opportunities in India 10. Rural education in India (A Contextual Commentary)

11. Discrete Overview on Public Sector Undertakings: Growth of PSUs Under the benefits of better Human Resource 12. A Study on Initiatives, Achievements and Progress of Financial Inclusion of India

13. The Theoretical Underpinnings of Store Loyalty: A Perspective

14. Evolving Dynamics of Social Media in Indian Political Paradigm Comments / Suggestions (if any) :

Name : Mr. / Ms. Organization / Institution : Designation : Address: Phone : E-mail :

SUBSCRIPTION FORM

I wish to subscribe to / renew my subscription to "SAMIKSHA" for 1 / 2 / 3 year(s). A bank draft / cheque* bearing no...... dated...... for Rs...... drawn in favour of UNITED INSTITUTE OF MANAGEMENT, payable at ALLAHABAD towards subscription for ...... years, is enclosed.

Name :...... Org./ Inst.:...... Address:...... Subscription Rates City:...... Pin:...... Category 1 yr. 2 yr. 3 yr. Phone:...... Indian (in Rs.) 1. Institutions Fax:...... 350 600 850 2. Individual 250 425 550 Mobile:...... 3. UIM Student 200 325 450 E-mail:...... / Alumni Category (1/2/3):...... Year:...... *For outstation cheques in India, please add Rs. 30 towards bank charges. Signature with Date

NOTES NOTES

The United Group, founded by late Shri Shiv Ram Das Gulati in 1951 emerged from a transport business to the giants in the fields of education, services, transportation and journalism. The group made a mammoth leap in the education arena in the mid 80s by being the pioneers in computer education. This further lead to the establishment of United Institute of Management and United College of Engineering & Research in Allahabad.

Now, with 9 well established institutes in Allahabad and Greater Noida, over 11000 students and more than 750 faculty members, the United Group of Institutions is poised to reach the next level providing the best technical education. Our establishment offers NBA accredited courses, Quality recognised by the World Bank and boasts of more than 8500 alumni base. Our placement scenario is booming with over 8000 jobs already offered and state of the art facility provided to faculty and students alike. Fortified with these features, the United Group is primed to continue taking the world of quality education to the highest attainable limits. All the Institutions are affiliated to Gautam Budh Technical University, Lucknow & Mahamaya Technical University, Noida and are approved by All India Council for Technical Education (AICTE), Ministry of Human Resources Development, Government of India, New Delhi.

United Institutes works on the motto of holistic education of its students. Hence every measure is taken that their progress does not remain constrained to the classrooms. Ample scope for extracurricular activities along with classroom syllabus keeps the student at par with the best of the institutes. The campuses are located away from the city, landscaped stunningly to create a peace of mind and make the environment academically inductive.

Special care is given to the courses of the student which demand industrial trainings and visit. The Naini industrial area provides the perfect opportunity for the students to gain hands on experience and getting to know the grooves of the industry. The Greater Noida campus has a great advantage of being in the NCR-region which is the UNITED home ground of the corporate giants making it simpler for the Group of Institutions students to gain a practical work experience along with classroom Allahabad • Greater Noida education. At United we believe in taking the course of progress in the United Institute of Management fields of technology and administration to the pinnacle. Hence our A/16, UPSIDC Industrial Area, Naini, Allahabad (U.P.) motto remains- nurturing the young minds today, who will create Phone #- 0532-2686070 history tomorrow . Fax- 0532-2687142 E-mail : [email protected] [email protected] www.united.ac.in Website: www.united.ac.in