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Primax International Journal of Commerce and Management Research No.25/A, Nagadevanahalli, Boothappa Temple Road, 80 Feet Ring Road, Jnanabharathi Post, Bangalore -56, Karnataka, . Ph: 08971725451 Email: [email protected], [email protected] www.primaxijcmr.com Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612

Managing Editor: Prof. T. Rajeswari., M.Sc.,M.A(Eng).,M.B.A.,M.A.(Soc).,

Chief Editor: Dr.K.V. Ramanathan., M.Com.,M.Phil.,M.B.A.,P.D.B.S.,Ph.D., Professor- Primax Research Center Bangalore.

Coordinator: Dr. V. Selvaraj Former, Head & Associate Professor, Nehru Memorial College (Autonomous),Tiruchirappalli Dr. M. Muthu Gopalakrishnan Associate Professor, Acharya Bangalore B School, Bangalore. Dr. N. Giri Babu, Associate Professor, Sri Venkateswara College of Engineering & Technology, Chittoor.

Publisher: Primax Commerce and Management Research Academy, Bangalore-56 (Karnataka Reg.: 48/159/CE/0103/2013)

Issue: Special Issue, November 2015

COPYRIGHT: 1. All rights reserved. And Copyright © 2013, Primax Commerce and Management Research Academy. 2. Reproduction of any part of this Journal in the whole or in part without written permission from the publisher is prohibited . 3. All rights reserved ISSN: 2321-3604

Contact: Prof. T. Rajeswari., M.Sc.,M.A(Eng.).,M.B.A.,M.A(Soc) Founder and Managing Editor, Primax Commerce and Management Research Academy, No.25/A, Nagadevanahalli, Boothappa Temple Road 80 Feet Ring Road, Jnanabharathi Post, Bangalore -56, Karnataka, India. Ph: 08971725451 Email: [email protected], [email protected],

Special Issue November 2015 Page II Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 Editor Desk "

It gives us great pleasure to come out with the special issue of Primax International Journal of Commerce and Management Research, Bangalore, in connection with the Fourth International conference on Current Trends in Management Research and its relevance to Indian Industry” PLACITUM 2015, the flagship event of the Department of Management Studies of Sree Narayana Gurukulam College of Engineering (SNGCE), Kolenchery, Kerala. In the wake of several challenges which the growing economies face in the realms of basic necessities in life, research plays a very vital role drastic changes. It is very important that different stakeholders unite and collaborate on issues which confront the society. One of the key objectives of research should be its usability and application. This issue of the journal attempts to document and spark a debate on the research focused on various areas of management in context of emerging geographies. The sectors could range from , Marketing, , and Finance, Portfolio management, Human Resources, Competency mapping and service areas. The key focus would however be the emerging sectors and research which discusses application and usability in societal or consumer context whether individual or industrial. Our aim since the start of PLACITUM in 2012 has been to maintain our integrity and increase the reputation of our conference, papers presented and published as well as to increase the visibility, impact and the overall quality of our publications. We thank the SNGCE Management as well as the Director- MBA @ SNGCE for their constant guidance and support for coming out with this issue of the research journal. We are also extremely thankful to Dr. K. V. Ramanathan of Primax International Journal of Commerce and Management Research, Bangalore, for helping us in time to come out with this issue during PLACITUM 2015. The editorial review board members too had a tough time in selecting the best research articles for this issue. Non inclusion of articles does not mean that they were rejected because of lack of quality but there were better ones than those which were not selected. No doubt this should prove as a motivation for the researchers to work more oin their respective areas with more vigour. We hope that this issue would provide all researchers in the field of management and commerce with sparks of knowledge in their areas for their journey in research in the days to come. Wishing all a happy reading through the pages…..

Editors

Prof. Dr. Deepak Ashok Kumar Prof. Dr.Hari Sundar.G

“Truth is the most valuable thing we have. Let us economize it”..

- Mark Twain.

Special Issue November 2015 Page III Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 Contents

Sl.No. Title of the Articles Page No. 1 Efficiency of Receivables and Liquidity Management In Pharmaceutical 1 - 7 Companies In India: An Application of Bathory’s Risk Perception Model - Ambily T. Chacko, Dr. Santhosh Kumar.s 2 Customer Satisfaction of Online Banking Services In SBI 8 - 14 - Anupa S, Sibeena Salam 3 Corporate Social Responsibility (CSR) In India - Changing Paradigms and 15 - 21 Challenges - Babu Jose, R. Venkateswaran 4 A Study on Employee Engagement Among It Sector Employees In Kerala 22 - 25 - C. V. Lolitha, Dr. Johney Johnson 5 A Comparative Analysis of Corporate Social Responsibility Reporting of Public 26 - 34 and Private Sector Banks In India - Clement Cabral 6 Investor’s Perception Towards Equity and Non Equity Based Investment 35 - 41 Avenues - Cryshal Mathias 7 A Prediction Model For Organizational Role Stress Based on Back Propagation 42 - 48 Neural Network - Deepa Mohan, Sudarsan. N 8 Consumer Behaviour Towards Organic Vegetables 49 - 52 - Divya Vijayan, Dr.K.N.Ushadevi 9 A Study of Demographic Variables and Their Impact on Work Life Balance 53 - 57 Practices - Dolan Champa Banerjee 10 Impact of Mobile Telphony In Rural India - Dr. A. Kumudha, C.R. Shiv Kumaran 58 - 62 11 Occupational Hazards of Women Workers In Garment Sector 63 - 67 - Dr. Pankajakshi. R, Prof. Shailaja.M. L. 12 A Comparative Analysis of Financial Inclusi on Strategies In Banks with Special 68 - 75 Reference to SBI and ICICI - Dr. Catherine Nirmala Rao 13 Information and Communication Technology & Its Impact on Education 76 - 81 - Dr. Chandra Purkayastha 14 A Study on Impact of Agmark Status In Consumption Pattern with Special 82 - 85 Reference to Tirunelveli City - Dr. D. Janis Bibiyana, S.Sarala Lakshmi 15 Decoding The Young Consumers – A Literature Review 86 - 90 - Dr. Deepak Ashokkumar 16 Strategic Study of The Effects of Perceived Risks and Benefits of Shopping 91 - 104 - Dr. Hari Sundar.g, Dr. D. Sudha Rani Ravindran, & Mr. Ramakrishnan 17 An Exploratory Study on Road Rage and Its Degree of Prevalence In Cochin 105 - 110 City - Dr. Jacob Mathew Pulikotil, Mr. Jithin Benedict 18 The Impact of Marketing Mix on Customer Satisfaction Towards Laptop 111 - 116 Industry - Dr. M. B. M. Ismail, Mr. A. L. M. Shameem,& Mr. A. Riswan

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Sl.No. Title of the Articles Page No.

19 Group Differences In The Selection of Fast Restaurant: A Use of 117 - 124 Discriminant Analysis - Dr. M. B. M. Ismail 20 A Study of Working Environment For School Teachers - Dr. M. B. M. Ismail 125 - 131 21 A Study on Customer Awareness on Green Initiatives with Special Reference 132 - 136 to Selected Private Sector Banks In Ernakulam - Dr. Prakash Pillai, Mr. Praveen Raj.D 22 A Study on Work Life Balance of Women Employees In BPO Sector 137 - 139 - Dr. R. Devi 23 Association Between Critical, Creative Thinking and Problem Solving In 140 - 143 Accounting Researches : An Overview - Dr.B. Nimalathasan 24 Emanation of Women-Inherited Business In India – An Insight 144 - 149 - Dr.r. Vimal Nishant 25 Prospects of Green Marketing and ITS Strategies - Hena. M 150 - 155 26 Mergers and Acquisitions of International Banking. Penetration Strategy In 156 - 162 Emerging Economy of Banco Santander México and Banca Serfin Case - José G. Vargas-hernández, Carlos Enrique Suárez Medina 27 A Study on Customer Satisfaction of Akshaya Centres 163 - 166 - Krishna.r, Ann Alu Mathew 28 Corporate Social Responsibility For Rural India - Mithun Nair, Dr.Hari Sundar.g 167 - 173 29 Influence of Holistic Marketing Orientation on Customer Value In New 174 - 179 Generation Banks In Kerala. - Mr. Jomon Jose M 30 E-Publishing -A Strategic Overview - P.M. Manoharan Pillai 180 - 183 31 A Study on Customer Relationship Management with Reference to Bike Show 184 - 190 Rooms - S. Noor Mohamed Bisool 32 Study about The Bottleneck of Cooperative Banks - Sanitha A.C 191 - 194 33 Online Shopping In Kottayam: An Empirical Examination of Its Customer 195 - 203 Satisfaction Perspectives - Sanju P Cherian 34 Consumer Preference Towards Organic Vegetable 204 - 207 - Zita V Bosco, Boniface P.J 35 Post-harvest Value Addition In Jackfruit- Scope For FPO 208 - 212 - Varnana Nair, Dr.p Shaheena 36 A Study on Motives For Entrepreneurial Intentions among Women Telecentre 213 - 216 Owners In Kerala - Sreejith. S 37 A Study on Quality of Worklife At India Infoline, Cochin 217 -223 - S. Soumya, Dr. N. Ramkumar 38 Strategic Study on Content Analysis of Library Websites With Special 224 - 230 Reference to Central Universities In South India - Sariga T. R, Lakshmi T. R

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Sl.No. Title of the Articles Page No.

39 Managerial Challenges and Innovations In Entrepreneurship - Indhra Vinod 231 - 235 40 A State of The Art Review on Supply Chain Collaboration 236 - 243 - Shreejith T. V , Kemthose P. Paul 41 The Impact of Service Quality on Customer Satisfaction and Customer Loyalty 244 - 248 In HSBC Bank In Jaffna District - Sivapragasam Sivanenthira, Vasanthakumar Kumaradeepan

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EFFICIENCY OF RECEIVABLES AND LIQUIDITY MANAGEMENT IN PHARMACEUTICAL COMPANIES IN INDIA: AN APPLICATION OF BATHORY’S RISK PERCEPTION MODEL Ambily T. Chacko1 Dr. Santhosh Kumar.S2

Abstract The paper examines thereceivables and liquidity management in listed pharmaceutical companies in India using Bathory’s Risk Description Model. The article developed and statistically validated two hypotheses that(1) the Credit Score indicating efficiency of receivables management and(2) the Normalised Working capital to Credit Exposure ratio signalling liquidity of the different pharmaceutical companies in India are same irrespective of their annual sales revenue. It was found that the receivables management efficiency and liquidity of the companies do not differ significantly when the companies are grouped based on annual sales revenue. Key words: Cash management, credit worthiness, credit risk

Introduction the total assets of US firms consists of receivables. In All firms by their very nature are involved in selling of India it accounts for one third of total assets (Ramana, goods or services. Although some of these sales are in 2013).The study is deemed to be necessary in the light cash, a larger share would be on credit. Sales on credit of brutal competition in the Indian Pharmaceutical market basis are inevitable in today’s highly competitive business brought about by production of very close substitute world to maximize its magnitude and thereby profit. products by firms (Gilligan, 2005).The Liberal extension of credit and its proper management secompaniesalsoseemedsensitive to economic is very important for both big and small enterprises. fluctuations, policy changes and seasonal variations. Evidently, the extent to which firms manage their Thus, companies resort to various strategies to boost receivables go a long way to the level of their profit. Profit their sales. As credit extension is one of the old and may only be called real profit after the receivables are prominent measures adopted to maintain a long standing turned into cash. The management of accounts relation with the customers, assessing the credit risk of receivable is largely influenced by the credit policy and debtors and maintaining the flow of working capital have collection procedure (Nwakaego, 2014). A credit policy become a challenge. specifies the requirement to value the worth of customers Review of Literature and a collection procedure provides guidelines to collect unpaid invoices that will reduce delays for customers As stated above, firms typically sell goods and services who have not yet made payment for goods and services on both cash and credit basis. Firms would rather sell and outstanding receivable (Richards, 1980). The for cash than on credit, but competitive pressures force objective of debt management is to minimize the time most firms to offer credit. When the customers pay these lapse between inventory acquisition and completion of credits, the firm receives the cash associated with the the entire cash conversion cycle (Sharma, 2011). original sale. If the customer does not pay an account, Excessive or lower level of current assets may negatively a bad debt loss is incurred (Pinches, 1994).According impact firms’ profitability by bringing difficulties in to Chambers and Lacey(2011)there are three primary mediating smooth operation (Wachowitz & Horne, issues in the management of accounts receivable: to 2004).Apart from the level of composition, there exists whom to extend credit, what the terms of credit should considerable difference in the level of receivables in firms be, and what procedure should be used to collect the around the world. (Maksimovic, 2001) presents evidence money. Extending credit should always be based upon that in countries such as France, , and cost- benefit analysis, because of uncertainty in future accounts receivable exceeds a quarter of firms’ total payment. The latent cost of extending credit is that the assets, while Zingales, (1995) find that 18 per cent of customer will not pay. Ramachandran (2009), analysed the relationship between working efficiency and earnings

1 . Research Scholar, P.G. and Research Department of Commerce, St. Peter’s College, Kolenchery, Kerala. 2 . Associate Professor, PGand Research Department of Commerce, St. Peter’s College, Kolenchery, Kerala.

Special Issue November 2015 Page 1 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 before interest and tax of the paper Industry in India found determining the magnitude of future cash-flows to service that cash conversion cycle and inventory days had obligations as when due. Thus, measuring the credit negative correlation with earnings before interest and tax, worthiness of firms and analysing the liquidity position while accounts payable days and accounts receivable of the companies are the need of the hour. days related positively with earnings before interest and Pharmaceutical companies in India, as mentioned tax. earlier, are facing severe competition and therefore the Bathory(1987) in his book” The Analysis of Credit “, resultant receivables are also high. Higher the receivables developed a ratio based model of credit analysis. He higher is the chance of bad debt losses. opined that greater the quality and quantity of data at Objectives of the Study the analyst’s disposal, the better the credit opinion. The The study examines the following facets relating to model suggests eight different ratios. They are receivables and liquidity management of BSE listed Profitability, adequacy, liquidity, comfort margin, debt pharmaceutical companies with turnover Rs. 500 crores capacity and priority debt service ability ratios. He and above in India. developed the model in a manner that accuracy and relevance of the model’s findings are directly proportional 1. Efficiency of receivables management by computing to the age and quality of the historical data. The model the Credit Score (CS)with the help of Bathory’s Risk can be intended to be used as general diagnostic tool Description Model. for commercial or Industrial sector. Nilsen (2002) who 2. Liquidity position based Normalised Working Capital analysed the magnitude of receivables among (NWC) to Credit Exposure (CE) ratio as per Bathory’s manufacturing industry found that, on an average 25 per Risk Description Model. cent of current assets was held by receivables. Basu (2011) who made a study on eight cement companies Hypotheses using Bathory’s Risk Description Model which primarily 1. The Credit Score (CS) as per Bathory’s Risk focuses on profitability, liquidity and capital adequacy Perception Model for listed pharmaceutical revealed that these three ratios influence the credit score companies in India (turnover Rs. 500 crores and of individual companies and where these ratios are high above) are same irrespective of the magnitude of their the credit scores obtained were also high. annual sales revenue. 2. The liquidity of the listed pharmaceutical companies Statement of Problem in India (turnover Rs. 500 crores and above) in terms The traditional methods of credit risk analysis are of Normalised Working Capital (NWC) to Credit unrealistic and are not cost effective. Usually industries Exposure (CE) are same irrespective of their annual grant credit based on past experience and customer sales revenue. behaviour. But a systematic evaluation of credit risk before granting credit is important. Because once credit is given Research Methodology the firm has nothing to do other than applying loss The study is descriptive in nature. The pharmaceutical mitigating techniques. A good credit rating increases the companies listed in Bombay Stock Exchange market value of the firm which in turn helps company to (BSE)having annual turnover of 500 crores or above collect funds cheaply. The financial health of a company, constitute the population of the study. Altogether, there no doubt, depends on its quality of assets. Among those are 46 companies with annual turnover of 500 crores assets, receivables assume prime importance as it is and above are listed in BSE and a sample of 10 the most dynamic and vulnerable compared to other companies are selected form the four turnover based current assets. Being amounts locked-up with strata (Table 1). The database of Dion global solutions customers, receivables have a significant role in Ltd. hosted by moneycontrol.com is the source of data. (Table - 1)

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Table -1: Population and Sample

Group Turnover(Rs. crore) Population Sample Name of Sample Companies

1 500-1000 18 3 Strides Arcolab Ltd Novartis India Ltd Natcopharma Ltd 2 1001-2500 16 3 Biocon Limited Abbott India Ltd Pfizer Ltd 3 2501-5000 6 2 Glaxo Smithkline Pharmaceutical Ltd. Sun Pharmaceutical Industries Ltd 4 < 5000 8 2 Cipla Ltd Dr.Reddy’s Laboratories Ltd Total 46 10

*Ltd- Limited

The Credit Score (CS) and liquidity ratio of the companies are computed based on the specifications of the Bathory’sRisk Description Model(Alexander, 1987).Pearson’s simple correlation and ANOVA have been applied at appropriate places. The financial data of the selected companies from the financial year 2006 to 2015 are used for analysis. As per Bathory’s Model, the following eight ratios are to be computed for determining the CS of the companies.

1. Profitability = Net profit/Capital Employed...... X1

2. Profitability (cumulative) = Net tangible assets/Total Liabilities……….....…. ..X2

3. Liquidity = Net Profit/Current Liabilities…………………………………...……X3

4. Liquidity = Normalised working capital/Credit Exposure……….…….…..…….X4

5. Capital adequacy = Equity/Current Liability + Credit Exposure……….……... ..X5

6. Comfort Margin = Net Assets/Credit Exposure…………………..………………X6

7. Debt Capacity = Total Assets/Total Liability + Credit Exposure…………...……X7

8. Priority Debt Service Ability = Net Profit + Depreciation/Current Debt….…….X8 In the first ratio return on capital employed is calculated which shows the profitability. Here net profit before interest and after tax is used. The second ratio reveals the measurement of cumulative profitability of the current year as well for accumulated periods. In third ratio net profit over current liabilities depicts the credit worthiness of firm when compared with the traditional ratios of liquidity. This is so because net profit includes some items additional to current assets like surplus after accounting for depreciation. The fourth ratio also measures liquidity, normalised working capital by deducting 50 per cent of stock from net current assets. Credit exposure is calculated by taking 25 per cent of Current assets. Capital adequacy of company is measured by the fifth ratio, which implies long term or permanent capital. Generally company’s’ permanent capital would not be used in normal circumstances to meet short-term obligation. The fifth ratio is considering equity on the ground that the growth in the share value can, in many situations, provide firms with further borrowing powers. In calculating the ratios we include credit exposure (CE) with firm’s current liabilities to show the most severe total of a firm’s obligation. We calculate the sixth ratio by placing net assets over credit exposure and it is called comfort margin. In most of the cases normalised working capital/credit exposure produce comparatively high numbers and probably negative. Since, stock is a very substantial portion of current assets and when we deduct stock from Net Current Assets, there is a very high probability of a negative figure. It is hoped that net assets will provide a significantly large amount of cover for the small credit exposure. The resulting ratio should thus throw high positive scores and its effect on the model should accordingly compensate for the high negative numbers shown by normalized working capital/credit exposure. To assess the debt capacity of the firm, we calculate Total Assets/(Total Liabilities+ credit exposure). Here, total liabilities mean all short term and long term obligations, the amount of credit exposure is also added along with the total liabilities. This would indicate safety margin taking into consideration all known obligations including the credit asked for by the customer. Such a measurement gives a rough idea of breakup value of the company, where there are all

Special Issue November 2015 Page 3 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 obligations of the customer, including our original exposure to crystallise simultaneously. This ratio gives an indication of safety margin and debt capacity, both of which are the functions of liquidity, capital adequacy and profitability. The eighth and the last ratio, we place financial flow (gross cash flow) over current debt. All the current liabilities are not demanded at a time, since calculating current debt, here we take twenty five per cent of firm’s current liabilities. It is a treatment of priority debt items. For the purpose of the model, the eight ratios are taken into consideration giving them equal weight for the computation of CS. The CS computation can be expressed as follows. CS= L*ΣXi Xi = Variables (i=1to8) L = Constant Multiplier = 100/8 = .125 (as the model) The develop Model is thus =.125*ΣXi Results and Discussion Bathory’s model is self-explanatory in nature, the main objective is to help the credit analyst, in extracting best result by using financial statement. The model clearly depicts how the liquidity, profitability and capital adequacy factors influence the credit score of companies. The companies with all the factors favorable can obtain a high score. Here, as per the Model, credit score for of each company is calculated (Table 2). The companies with turnover above Rs. 5000 crore(Group 4) scored the highest credit score of 126.98. However, the next best credit score is obtained by the Group 1 companies with turnover ranging between Rs. 500 crores and Rs. 1000 crores. While the Group 3 companies with turnover Rs. 2501-5000 crores got a credit score of 115.80, Group 4 companies with a turnover range of Rs. 1001-2500 crores got a credit score of 111.3. Noticeably, the credit scores do not disclose any relationship to the size of the turnover of the companies. This is quite evident from the ANOVA table (Tables 3 and 4) that there is no difference in the credit scores of different turnover groups of Indian pharmaceutical companies (p value 0.813). Thus we accept the null hypothesis, CS as per Bathory’s Risk Perception Model for listed pharmaceutical companies in India (turnover Rs. 500 crores and above) are same irrespective of the magnitude of their annual sales revenue. Table - 2: Credit Score of the Pharmaceutical Companies

Note: NWC= Normalized Working Capital, NTA= Net Tangible Assets, E= Equity Shareholders fund, CL= Current Liabilities, TL= Total Assets, CR.EXPOSU. =Credit Exposure, CD= Current Debt, D= Depreciation, NP= Net Profit, NA= Net Assets, CE=Capital Employed.

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Table - 3: ANOVA of Credit Score - Comparing Turnover Groups

Comparison Sum of Squares Df Mean Square F Sig. Between Groups 370.531 3 123.510 .318 .813 Within Groups 2331.370 6 388.562 Total 2701.902 9 Source: Authors’ computation in SPSS 22 Table - 4: ANOVA of Credit Score - Comparing Turnover Groups

95% Confidence Interval Mean (I)Turnover (J) Turnover Difference Group Group Std. Error Sig. Lower Bound Upper Bound (I - J)

2 11.58958 16.09476 .499 - 27.7929 50.9720 1 3 7.08521 17.99448 .707 - 36.9457 51.1161 4 - 4.08542 17.99448 .828 - 48.1163 39.9455 1 - 11.58958 16.09476 .499 - 50.9720 27.7929 2 3 - 4.50438 17.99448 .811 - 48.5353 39.5265 4 - 15.67500 17.99448 .417 - 59.7059 28.3559

1 - 7.08521 17.99448 .707 - 51.1161 36.9457 3 2 4.50438 17.99448 .811 - 39.5265 48.5353 4 - 11.17063 19.71197 .591 - 59.4041 37.0628 1 4.08542 17.99448 .828 - 39.9455 48.1163 4 2 15.67500 17.99448 .417 - 28.3559 59.7059 3 11.17063 19.71197 .591 - 37.0628 59.4041 Source: Authors’ computation in SPSS 22 In-depth analysis of the individual company’s credit performance on the basis of calculated credit score shows that Arcolab ltd. has the highest average score for current profitability, liquidity and current debt paying capacity which helped the company to improve its credit score (141.97).Overall credit score of Arcolab Company is the highest among the whole group. Novartis has the highest score with respect to cumulative profitability and capital adequacy, but still the company’s performance with respect to the credit score is below the groupaverage. Natco recorded a high score with respect to cumulative profitability but while considering the individual score the company could not outperform the group average. In the case of Group 2 with a turnover of Rs 1001-2500 crores, Biocon obtained reasonable scores with respect to comfort margin and cumulative profitability; and obtained the highest score in the group. Even though Pfizer had obtained the highest score with respect to liquidity, the decreased profitability outweighed the performance reducing the overall credit score to 100.23 much below Biocon. Abbott remained an average performer in the group. Even though Glaxo recorded decent level of profits its liquidity position was negative for many years and this led the company to clock the lowest credit score in the whole group. High level of net assets held by Sun Pharma resulted in scoring the highest positive score with respect to comfort margin(839.20) as the net assets provided a substantial cover to the small amount of credit exposure. Besides its strong equity base the company managed to score only an ordinary credit score. The liquidity and profitability position of both Cipla and Dr. Reddy’s is almost the same, but the huge level of depreciation and high volume of inventory, short term assets out setting the long term assets weakened the debt repaying capacity of the firms. Besides their huge turnover, they managed to be only average performers. The Table 5 reveals the ranking of groups based on the group average of NWC/Credit Exposure and credit score group average. While Group 2 with a turnover of Rs.1001-2500 stands first in the liquidity measure, it is in the fourth position in the case of CS. While the Group1 ranked second in both CS and liquidity, Group 4 was placed first in CS and third in liquidity measure. It also indicates that the short term debt paying capacity is very strong for Pfizer Ltd and Novartis Ltd. This has resulted in driving their group average to better positions.

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Table - 5: Liquidity Position

NWC/ NWC/ CS Turnover Rs (Crores) % Cash % CLs Credit Expo Companies CREDIT Rank (Group Rank to CAs CAs (Group EXPO Average) Average) Arcolab 0.064 0.444 199.80 500 - 1000 Novartis 0.130 0.216 295.46 208.53 2 122.89 2 Natco 0.039 0.657 130.34 Biocon 0.118 0.420 185.76 1001 - 2500 Abbott 0.355 0.380 179.52 220.74 1 111.3 4 Pfizer 0.381 0.882 296.94 Glaxo 0.429 0.455 189.11

2501 - 5000 Sun Pharma 0.108 0.597 118.15 153.63 4 115.8 3

Cipla 0.014 0.367 174.86

Comparison Sum of Squares Df Mean Square F Sig. Between Groups 5839.831 3 1946.61 0.453 0.725 Within Groups 25792.55 6 4298.758 Total 31632.38 9 Source: Authors’ computation in SPSS 22

Table - 7: ANOVA – Liquidity of Turnover Groups

95% Confidence Interval (I) Turnover (J) Turnover Mean Difference Std . Error Sig. Group Group (I-J) Lower Bound Upper Bound

1 2 - 12.208 53.53353 0.827 - 143.2 118.7838 3 54.90635 59 .85231 0.394 - 91.547 201.3597 4 13.68205 59.85231 0.827 - 132.771 160.1354

2 1 12.208 53.53353 0.827 - 118.784 143.1998 3 67.11435 59.85231 0.305 - 79.339 213.5677 4 25.89005 59.85231 0.68 - 120.563 172.3434

3 1 - 54.90635 59.85231 0.394 - 201.36 91.547 2 - 67.11435 59.85231 0.305 - 213.568 79.339 4 - 41.2243 65.56492 0.553 - 201.656 119.2073

4 1 - 13.68205 59.85231 0.827 - 160.135 132.7713 2 - 25.89005 59.85231 0.68 - 172.343 120.5633 3 41.2243 65.56492 0.553 - 119.207 201.6559 Source: Authors’ computation in SPSS 22

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Conclusion • Mukhopadhyay, D. (2004). Working capital The efficiency of receivables management in Management in Heavy Engineering Firms- A case pharmaceutical companies based on the credit score is Study. Retrieved from Myicwai.com/knowledgebank/ found to be more or less same among companies fm48. irrespective of their magnitude of sales. Though the credit • Nilsen, J. (2002). Trade credit and the bank lending score is visibly high in the case of companies with annual channel. Journal of Money Credit and Banking, 34(1), sales exceeding Rs. 5000 crores, altogether no 226-253. significant differences were observed in this regard. As • Nwakaego, D. A. (2014). Account Recievables efficient management of receivables have a significant Management and Corporate Performance of stake in keeping up liquidity, quite natural, the companies Companies in the Food & Beverage Inustry : Evidence do not differ in the matter of liquidity also. Though no from Nigeria. European Journal of Accounting Auditing benchmark is available for comparing the computed and Finance Research, 2(10), 34-47. credit score, the relative comparison of companies are • Pinches, G. (1994). Financial Management. New york: conclusive.A closer view of the built-in factors of the Harper Collins College Publishers. model like profitability and capital adequacy which affect • the receivables and liquidity management couldalso give Ramachandran, J. (2009). The relationship between clues about these aspects of the Pharma industry. working capital Management Efficiency and EBIT. Managing Global Transitions, 7(1), 64-71. Bibliography • Ramana, R. V. (2013). Impact of Recivables • Alexander, B. (1987). The Analysis of Credit. newyork: management on Working Capital and Profitability: A Mc Graw Hill. Study on Select Cement Companies in India. • Anthony, N. R. (1975). Management accounting- Text International Journal of Marketing, Financial Services and cases. Graham Series. & Management Research, 2(3), 163. Retrieved from www.indianresearchjournals.com • Basu, A. (2011). Ratio based credit evaluation model. Jounal of Research in Commerce,IT & Management, • Richards, V. &. (1980). A Cash conversion cycle 6-11. approach to liquidity analysis. Financial Management (9 ed., Vol. 1). • Bathory, A. (1987). The Analysis of Credit. New York: Mac-Grawhill Book Company. • Sharma, &. K. (2011). Effect of working capital management on firm Profitability: Empirical evidence • Chambers D., L. N. (2011). Modern Corporate from India. Global Business Review, 12(1), 159-173. Finance. Michigan: Hayden Mcneil Publishing. • Wachowitz, V., & Horne. (2004). Fundamentals of • Gilligan, R. M. (2005). Strategic Management- Financial Management (10 ed.). New Jersey: Prentice Planning ,Implemtation and Control (3rd ed.). London: Hall International Inc. Elsevier Butterworth-HeinemannLinacre House. • Wood, J. (1953). Credit and Collection. Business • Maksimovic, D. (2001). Firms as financial Finance Hand Book. intermediaries:Evidence from trade credit data. . • Zingales, R. (1995). What do we know about capital structure? Some evidence from international data. Journal of finance(50), 1421-1460.

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CUSTOMER SATISFACTION OF ONLINE BANKING SERVICES IN SBI

Anupa S 1 Sibeena Salam2

Abstract The Internet has become a vital part of people’s daily lives. It has changed consumer behavior in many ways, including financial transactions formerly requiring a visit to a bank branch to achieve. Commercial banks have been in the forefront in utilizing this to meet customer needs for on-demand financial services. A system allowing individuals to perform banking activities at home, via the internet is online banking. Online banking through traditional banks enable customers to perform all routine transactions, such as account transfers, balance inquiries, bill payments, and stop-payment requests, and some even offer online loan and credit card applications. Account information can be accessed anytime, day or night, and can be done from anywhere. This paper discuss the concept of online banking, advantages and disadvantages of online banking, products and services offered through online banking and level of customer’s satisfaction of online banking services in SBI and it conclude that online banking offers unique benefits to both the customer and bank. And the customer find online banking service that suits his needs because of getting services more conveniently and secure. Key words: Online Banking, Customer Satisfaction, Fund transfer, Internet banking.

Introduction deregulation of financial markets in many developed and Online banking (or Internet banking or E-banking) allows developing countries have resulted in increased customers of a financial institution to conduct financial disintermediation and have made commercial banks transactions on a secured website operated by the vulnerable to interest rate risk. The developments in institution, which can be a retail bank, virtual bank, credit information technology and telecommunications are union or building society. To access a financial allowing an international pooling of financial resources, institution’s online banking facility, a customer having thereby spreading the risk across more than one market. personal Internet access must register with the institution Deena Amatev and Mr. Coy (2010) have expressed for the service, and set up some password (under various their mind in their extract titled “Fleet Helps Customers names) for customer verification. do it my way on line”. The two authors have expressed The password for online banking is normally not the same a positive attitude towards the enhancement of customer as for [telephone banking]. Financial institutions now service. Banking organizations, they say, should go routinely allocate customers numbers (also under various beyond home banking (traditional functions like opening names), whether or not customers intend to access their of accounts, funds transfer, balance enquiries, bills online banking facility. Customer’s numbers are normally payment and making proper investment). The two authors not the same as account numbers, because number of stated that customers should get to know how to explore accounts can be linked to the one customer number. the web sites to create awareness of on line products The customer will link to the customer number any of and services. those accounts which the customer controls, which may Johri and Jauhari (2010) also analyses the “importance be cheque, savings, loan, credit card and other of technology and issues emerging from this technology”. accounts. Customer numbers will also not be the same According to them, technology is emerging as a key- as any debit or credit card issued by the financial driver of business in the financial services industry. The institution to the customer. advancement in computing and telecommunication has revolutionalised the financial industry and banking on Literature Review the net is fast catching on. As e-commerce gets The strategic focus of the banks changed from the transformed into m-commerce with the increasing use production oriented to customer oriented. Hence the of technologies like WAP, banking business is in for a customers’ satisfaction is indispensable the organization. major overhaul. Roger (2011) analyses the importance of “Universal banking in India”. Globalization, liberalization and Bhasin (2009) has analyzed the impact of “Information technology on the banking sector”. Information

1 . Assistant Professor, A J College of Arts & Science, Thonnakkal, 2 . Assistant Professor, A J College of Arts & Science, Thonnakkal

Special Issue November 2015 Page 8 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 technology has revolutionized the various aspects of our Fund Transfer, Real Time Gross Settlement, and Core life. It has transformed the repetitive and overlapping Banking etc. are the latest electronic banking services systems and procedures into simple single key pressing introduced by banks in India. technology resulting in speed, accuracy and efficiency Definition of conduction business. The computerization of banks has provided a major push for enabling them to enter The performance of banking activities via the Internet. the newer activities. The banking industry has prepared Online banking is also known as “Internet banking” or itself and is strongly emerging to play a major “Web banking.” A good online bank will offer customers supplementary role in nurturing e-commerce just about every service traditionally available through a applications. local branch, including accepting deposits (which is done online or through the mail), paying interest on savings Objectives and providing an online bill payment system. • To identify the Concept online banking. History • To Know about advantages and limitations of online The precursor for the modern home online banking banking. services were the distance banking services over • To identify the products and services offered through electronic media from the early 1980s. The term ‘Online’ Online banking facility. became popular in the late ’80s and referred to the use • To evaluate the satisfaction level of customers on of a terminal, keyboard and TV (or monitor) to access online-banking services of SBI. the banking system using a phone line. ‘Home banking’ can also refer to the use of a numeric keypad to send Methodology tones down a phone line with instructions to the bank. The research is based on the customer’s satisfaction Online services started in New York in 1981 when four towards online banking services in Trivandrum district of of the city’s major banks (Citibank, Chase Kerala. The study is based on the primary data and Manhattan, Chemical and Manufacturers Hanover) Secondary data. offered home banking services. using the videotext system. Because of the commercial failure of Source of primary data videotext these banking services never became popular Primary data collected through well-framed and except in France where the use of videotext (Minitel) structured questionnaires to obtain the well-considered was subsidized by the telecom provider and the UK, opinions of SBI customers who operate different type of where the Prestel system was used. accounts. The convenience sampling technique was followed. When the clicks-and-bricks euphoria hit in the late 1990s, many banks began to view Web-based banking as a Sampling plan strategic imperative. The attraction of banks to online For the purpose of research a random sample of 100 banking are fairly obvious: diminished transaction costs, respondents were chosen from the Trivandrum district easier integration of services, interactive marketing as the State Bank of India’s customers capabilities, and other benefits that boost customer lists and profit margins. Additionally, Web banking services Sources of secondary data Secondary data were allow institutions to bundle more services into single collected from various banks, books, journals, packages, thereby luring customers and minimizing magazines, websites etc. overhead. Tools of analysis A mergers-and-acquisitions wave swept the financial Data’s collected were edited and coded for reducing industries in the mid-and late 1998s, greatly expanding errors. Appropriate statistical tools such as percentage, banks’ customer bases. Following this, banks looked graphs were used for analysis. MS excel was used for to the Web as a way of maintaining their customers and making data analysis. building loyalty. A number of different factors are causing bankers to shift more of their business to the virtual Online Banking realm. Online banking is an electronic payment system that enables customers of a financial institution to While financial institutions took steps to implement e- conduct financial transactions on a website operated by banking services in the mid-1990s, many consumers the institution, such as a retail bank, virtual bank, credit were hesitant to conduct monetary transactions over the union or building society. Online banking is also referred web. It took widespread adoption of electronic as Internet banking, virtual banking and by other terms. commerce, based on trailblazing companies such as Internet banking, Electronic clearing services, Electronic America Online, Amazon.com and eBay, to make the

Special Issue November 2015 Page 9 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 idea of paying for items online widespread. By 2000, 80 Overdraft Details: Limit and Drawing Power for OD percent of U.S. banks offered e-banking. Customer use Accounts, Repayment Schedule for Loan Accounts may grew slowly. At Bank of America, for example, it took 10 be viewed. years to acquire 2 million e-banking customers. However, Transactions Details: User may view, download and a significant cultural change took place after the Y2K print of the last 14 transactions or for specified period of scare ended. In 2001, Bank of America became the first selected account. bank to top 3 million online banking customers, more than 20 percent of its customer base. In comparison, Online Requests: User may request for Stop Payment larger national institutions, such as claimed for a particular Cheque or Range of Cheques in select 2.2 million online relationships globally, while J.P. Morgan accounts, Revoke of Stop Payment of Cheques already Chase estimated it had more than 750,000 online stopped. User may also change his contact no. (Phone banking customers. Wells Fargo had 2.5 million online no., mobile no., email etc.) banking customers, including small businesses. Online Funds Transfer between own Accounts: User may customers proved more loyal and profitable than regular transfer funds from one account (with requested customers. In October 2001, Bank of America customers transaction facility) to his/her another account to the executed a record 3.1 million electronic bill payments, extent of fund transfer limit fixed by the bank from time totaling more than $1 billion. In 2009, a report by Gartner to time, subject to the available balance, by selecting Group estimated that 47 percent of U.S. adults and 30 ‘from’ & ‘to’ accounts. percent in the United Kingdom bank online. Adding of Account in Beneficiary List: If amounts The UK’s first home online banking services known are frequently transferred to a particular account, then as Homelink were set up by Bank of Scotland for the facility of adding that account in beneficiary list will customers of the Nottingham Building Society (NBS) in be available by providing a nick name to that account. 1983. The system used was based on the UK’s Prestel view link system and used a computer, Viewing of Beneficiary Accounts: User may view all such as the BBC Micro, or keyboard (Tan data Td1400) the beneficiaries that have been added and may also connected to the telephone system and television set. modify the details of a beneficiary by selecting that The system allowed on-line viewing of statements, bank beneficiary. transfers and bill payments. In order to make bank Fund transfer to other Beneficiary Account: User transfers and bill payments, a written instruction giving may transfer fund from his/her account (with requested details of the intended recipient had to be sent to the transaction facility) to any other third party account, NBS who set the details up on the Home link system. maintained with any of our CBS Branch, to the extent of Typical recipients were gas, electricity and telephone fund transfer limit fixed by the bank from time to time, companies and accounts with other banks. Details of subject to the available balance, by selecting his/her payments to be made were input into the NBS system account and giving either third party’s account number by the account holder via Prestel. A cheque was then or selecting a beneficiary. sent by NBS to the payee and an advice giving details of the payment was sent to the account holder. BACS was Standing Order: User may give standing order for later used to transfer the payment directly. transfer of funds from one account to another to be executed on a predefined frequency (daily /monthly / Stanford Federal Credit Union was the first financial month end). User may also amend or cancel the standing institution to offer online internet banking services to all order so given. of its members in October 1994. E-Payment Facilities: User may use E-Payment facility Today, many banks are internet only banks. Unlike their for payment of Direct (CBDT) and Indirect (CBEC) taxes predecessors, these internet only banks do not maintain by debiting the account online and may print cyber receipt brick and mortar bank branches. Instead, they typically & challan also. differentiate themselves by offering better interest rates and more extensive online banking features. Online Enquiry: • Cheque Enquiry: User may enquire status of a Products and Services Offered Through Online Cheque or Range of Cheques issued in an account. Banking Facility • Cheque Books: User may enquire for Cheque books Account Summary: Accounts which are ‘Internet issued in an account. Banking Enabled’ may be displayed along with the • Current Balance, Total Balance, Unclear Balance and Outward Cheques Enquiry: User may enquire Available Balance etc. (Savings /Current / Overdraft / status of specific Cheque or all Cheques deposited Term Deposit / Loan Accounts). in an account.

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• TDS Detail: User may view the Tax Deducted at Internet banking also includes mobile capabilities. New Source details. applications are continually being created to expand and improve this capability or smart-phones and other mobile Other options: devices. • Contact Details: User may view address details. Transfers • Change Login Password: User may change login password as per guidelines available on website. Accounts can be automatically funded from a traditional bank account via electronic transfer. Most direct banks • Change Transaction Password: User may change offer unlimited transfers at no cost, including those destined transaction password as per guidelines available on for outside financial institutions. They will also accept direct website. deposits and withdrawals that the customer authorizes • Change User Preference: User can change their such as payroll deposits and automatic bill payment. User-Id; however the same can be changed only once. User may set his/her display preference. Ease of use • Login History: User may view login history. Online accounts are easy to set up and require no more information than a traditional bank account. Many offer Advantages of Online Banking the option of inputting the customer’s data online or Many banks have begun to offer customers the option of downloading the forms and mailing them in. If the online-internet banking, a practice that has advantages customer runs into a problem, he has the option of calling for both all parties involved. The convenience of being or e-mailing the bank directly. able to access accounts at any time as well as the Environment friendly ability to perform transactions without visiting a local branch, draw many people to be involved. Some of these Internet banking is also environmentally friendly. advantages of online banking but are not limited to, Electronic transmissions require no paper, reduce include: vehicle traffic and are virtually pollution-free. They also eliminate the need for buildings and office equipment. Customer’s convenience The Disadvantages of Online Banking Direct banks are open for business anywhere there is an internet connection. They are also 24 hours a day, Online Banking seems like an obvious choice to leave 365 days a year open while if internet service is not the hassles of traditional money management behind in available, customer services is normally provided around exchange for it. However, there are potential problems the clock via telephone. Real-time account balances and associated with banking over the internet of which information are available at the touch of a few buttons customers may not be aware. Consumers need to weigh thus, making banking faster, easier and more efficient. the advantages as well as the disadvantages of online In addition, updating and maintaining a direct account banking before signing up. Some of the disadvantages is easy since it takes only a few minutes to change the of internet banking include: mailing address, order additional checks and be informed Bank relationship for market interest rates. A traditional bank provides the opportunity to develop a More efficient rates personal relationship with that bank. Getting to know The lack of significant infrastructure and overhead costs the people at your local branch can be an advantage allow direct banks to pay higher interest rates on savings when a customer needs a loan or a special service that and charge lower mortgage and loan rates. Some offer is not normally offered to the public. A bank manager high-yield checking accounts, high yield certificate of usually has some discretion in changing the terms of Deposits (CDs), and even no-penalty CDs for early customer’s account if the customer’s personal withdrawal. In addition, some accounts can be opened circumstances change. They can help customers solve with no minimum deposits and carry no minimum problems such as reversing an undeserved fee. The balance or service fees. banker also will get to know the customer and his unique needs. If the customer has a business account, this Services personal relationship may help if the customer needs Direct banks typically have more robust websites that capital to expand. It’s easier to get the bank’s support if offer a comprehensive set of features that may not be there is someone who understands customer’s business found on the websites of traditional banks. These include and vouch for his operating plan. functional budgeting and forecasting tools, financial planning Transaction issues capabilities, investment analysis tools, loan calculators and equity trading platforms. In addition, they offer free Sometimes a face-to-face meeting is required to online bill payments, online tax forms and tax preparation. complete complex transactions and address complicated Mobility Special Issue November 2015 Page 11 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 problems. A traditional bank can host meetings and call Figure. 1 :Percentage of Satisfaction Level Of Customers On in experts to solve a specific issue. Moreover, Online Banking Services international transactions may be more difficult (or dissatisfied impossible) with some direct banks. If customer deposits 12% cash on a regular basis, a traditional bank with a drive- through window may be more practical and efficient. highly satisfied 40% Service issues

Some direct banks may not offer all the comprehensive satisfied 48% financial services such as insurance and brokerage accounts that traditional banks offer. Traditional banks Figure. 2 : Percentage Of Satisfaction Level of Respondents On Offline Services sometimes offer special services to loyal customers such dissatisfied as preferred rates and investment advice at no extra 28% charge. In addition, routine services such as notarization highly satisfied 32% and bank signature guaranteed are not available online. These services are required for many financial and legal transactions. satisfied Security 40% Direct banks are subject to the same laws and regulations as traditional banks and accounts are Figure. 3 : Preference To Facilities You Are Using With Online Banking protected by the FDIC. Sophisticated encryption fund transfer deposit or software is designed to protect your account information 20% withdrawal 27% but no system is perfect. Accounts may be subject to phishing, hacker attacks, malware and other unauthorized activity. Most banks now make scanned copies of cleared checks available online which helps to avoid and balance identify check fraud. The timely discovery of discrepancies bill payment 32% enquiry 21% can be reported and investigated immediately. Figure. 4 : Internal Force For Using Online Banking Analysis of Customer Satisfaction Of Online Banking user convenience Services In SBI friendly 14% 26% The data collected from 100 respondents belonging to the age group of 20-50. Out of this,80 respondents were interviewed with face to face interactions and 20 were security 24% ease for telephonic interview. (Fig. 1,2,3,4,5 & 6) use 32% Satisfaction on online banking service: Out of the total 100 respondents interviewed 40% of the Figure. 5 : Do You Think Online Banking Is Secure For respondents’ were highly satisfied, 48% were satisfied Transactions and 12% were dissatisfied (figure 1). no Satisfaction on offline service: It was found that the 22% out of the 100 respondents, 32% were highly satisfied, 40% were satisfied and 28% were dissatisfied (figure 2). yes 78% Preference for using online banking: It has been observed that there to be have several facilities for using online banking. While conducting the interviews about Figure. 6 : Do You Feel Any Difficulty With Online Banking 27% of the respondents’ preferred for deposits and withdrawals, 21% preferred for balance enquiry, 32% were yes for bill payment and 20% were for fund transfer (figure 3). 27% no Internal force for using online banking : It was 73% observed that 26% of the respondents using online banking because of continence ,32% were using as the reason of ease of use , 24% as for security and 14% revealed that was user friendly (figure 4).

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Security in online banking: It was observed that 78% Online banking is an electronic payment system. The of the respondents admitted it to be have security in rise of internet banks has increased the competition of online transactions, however 22% of the respondents the banking business. Online banking offers unique found it to be insecure (figure 5). benefits and also has some drawbacks. The benefits of internet banking are undeniable; there are some Difficulty in online banking : It was observed during inconveniences and concerns of which customers should interviews that 73% of the respondents admitted that be aware of. Online banking provides so many services they did not have any problem in related with online such as fund transfer, auditing of accounts in beneficiary banking where as 27 % admitted that they have some list, e-payment facilities, online enquiry etc. All these problems being faced (figure 6). help the customer decides that internet banking is right Discussion for him, he must be sure to review other offers from several banks. The large portions of respondents are • Analysis 1 After analyzing the responses of 100 using internet accounts because it is easy to use. On respondents through interviews it was observed that the other hand many people have difficulty relying on 40% was highly satisfied with online banking. Majority the security of online transactions, fearing the very real of customers are satisfied with its online banking possibility of identity theft. We can conclude that the services. customers are satisfied in online banking services. Banks • Analysis 2 It was to be analyzed that 32% of provides various services through internet like deposits, respondents were satisfied with offline banking also. withdrawals, fund transfer, bill payments, etc. for their However the most people satisfied with online banking. customers. • Analysis 3 To evaluate the preference of facilities in online banking found that customers are giving more References preference to bill payments (32%) and also used for • Amit Kumar Chaturvedi and Manish Badlani (2009) withdrawal and deposit purposes, and least Journal of Banking Information Technology and preference for fund transfer (20%). Customers are Management – vol.6 (2009) pp.40-42. using online banking because of its easy procedures. • An anonymous author (2008) Journal of Banking – • Analysis 4 To ascertain the internal force for using vol.25, pp33-38. online banking service, the most reason is ease for • banks”–Journal of Banking information technology use that the 32% of respondents. And 14% of and management –vol.8,p.56. respondents were using online banking as the reason • Bhasin (2009) “Impact of Technology up gradation of user friendly. The other reasons were convenience on the functioning of banks” - and security. • Chandrasekhar.M and Rajendra Sonur.M (2009) • Analysis 5 78% of the respondents admitted that “Analysis of impact of information technology on the online banking is more secure and provides for productivity of Indian banks”. Prajnan – vol 38. transactions than offline service. 22% of the respondents said that they are not satisfied with the • Darkin Mark, Donnell.O, Aodheen, Mullholl and security of online banking. A customer believes that Gywyeth, Grove, Joseph (2011) online banking is safe rather than traditional banking. • Deena Amatev and Mr. Coy (2010) Bank system and Customers are satisfied with the online banking technology. New York, Vol.37, procedure. • Issue 2, Feb.2000,pp. 39,40. • Analysis 6 Major portion of customers are satisfied • Jham and Vimi (2008) – IIBM Management Review in security measured provided by the bank in online (Indian Institute of Management Banglore) march banking large portion of respondents doesn’t have 2008 – vol.20. any difficulties in completing online transaction but • Johri and Jauhari (2010) “Impact of Technology some people’s faces some difficulties. 73% of upgradation on the functioning of respondents does not have any problems with online banking whereas 27% have being faced some • Journal of Banking information technology and problems. management - vol.8 – No.1, p.58 • Journal of Banking information technology and Conclusion management - vol.8 – 54. Online banking is the modern trend in the banking sector. • Kirti Dutta and Anil Dutta (2009) “Journal of services It has very significant role in the overall performance in research”- vol.9 April 2009, pp 31-44. the commercial banks. The study results show that most • Kishore.C.Padhy(2005) – www.atmmarketplace.com. of respondents were satisfied with online banking.

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• Mohammed Sdique Khan and Siba Sankar Mahapatra • Rao (2006) ) “Impact of Technology Upgradation on (2009) International Journal-Culture and Business the Functioning of Banks” - Journal of Banking Management, vol 2(2009). information technology and management – vol.8, p • Nair (2006) “Impact of Technology Upgradation on 6. the Functioning of Banks” - Journal of Banking • Ravinder Kumar and Nidhi Walia (2004) – www. information technology and management – vol.8, p Banknetindia.com. 55. • Roger (2011) “Impact of Technology upgradation on • Nexhmi Rexha, Russel Philip and Andrey shang the functioning of banks” – (2003) Journal of Service Marketing – vol. 17(2003), • Svita and Vishal Kumar (2005) Journal of Banking – pp.53-67. vol.25. • Puaj Kaura and Shalini Duby – www.wikipedia.com. • Vigur Yavas and Mahmond M Yasin (2011) – Journal • Raksha chouhan (2013) “ Study and Analysis of of services marketing, p5, 6/7– Academic Research Security Issue in e-banking to obtain a generalized Library, p.444. 2‘Journal of strategic Marketing; May security model – Journal of banking 2007, Vol.15, Issue 2/3, p237-252, 16 p7. • Ramesh Tasgak.h and Manjeet Kaur (2009) Journal of Banking Jan-June (2009).

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CORPORATE SOCIAL RESPONSIBILITY (CSR) IN INDIA - CHANGING PARADIGMS AND CHALLENGES

Babu Jose1 R. Venkateswaran 2

Abstract India is an emerging industrial power, which was integrated with the world business regime, by liberalization & new economic policy, ushered in 1991. As the market forces led the growth principle, focus of public sector was marooned by the need, to increase productivity and profits from their existence. In India the public sector, laid foundations of philanthropy in a big way. They were the temples, which imbibed the democratic principles of government. The focus on social development of all stakeholders was always a part of unwritten cornerstone of public sector existence. Social awareness programs were the earlier philanthropic programs in the domain of the public sector, which graduated now to be known as corporate social responsibility programs. Corporate Social Responsibility can be defined as concept by which companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. The new legislation made by the Government of India by the Companies Act 2013 is expected to bring far-reaching changes in the Indian CSR scenario. The purpose of the study was to assess the effect of the new developments on CSR in Indian Public sector Firms. Objectives of the study were to: establish the influence & need of CSR in corporate performance contexts, determine the effect of changes in CSR by the implementation of the new Act, which in turn influences Corporate & social Governance performance parameters. The main data collection instrument was a structured questionnaire. Quantitative data was analyzed using statistical tools. The study findings are expected to contribute towards academic paradigms, and to fill the gap between researched work and un-researched areas. Key words: CSR, Corporate Governance, Indian Public Sector

Introduction To integrate with the world business regime, the India is, for the first time, with an expected growth rate liberalization was ushered in 1991. And as competition of 7.5 % is leading the World Bank’s growth chart of doors was opened to private industry & world, there major economies as per the release of the latest Global ushered in a change in the boundaries of the competition Economic Prospects (GEP) report in June 2015 with ring, with new challenge coming in from the private sector. growth rate projected at 7.1%. And India has also As the market forces led the growth segment with the figured in top five emerging economies for highest Adam’s principal, the focus on the social perspective of investment commitments in private sector, infrastructure inclusive growth focus of public sector was marooned sector, energy, transport and water, according to the by the need to increase profits from existence. World Bank report. The bullish sentiment for India is due to the domestic demand, reforms, lowering crude Literature Review prices, lower external vulnerabilities etc, from the variety The first major work on the subject, Bowen’s Social of empirical and thematic understandings, encompassing Responsibilities of the Businessman appeared in 1953. different variety of insights; it is felt that improved It is considered by many to be the first definitive book economic conditions remain central and pivotal to any on the subject and marks the modern era of CSR (Valor, consideration of rise and survival of democracy too. 2005). Bowen (1953: 6) defined CSR as businessmen’s A mixed approach of economic growth was formulated obligation, to pursue those policies, to make those with focus on public sector growth and dominance, which decisions or to follow those lines of action, which are Nehru famously referred as Modern Temples of Modern desirable in terms of the objectives, and values of society. India” . The new global consensus of liberalization policies Because of his early seminal work, Carroll (1999) and of varying degrees in various countries were characterized Windsor (2001) credited, Bowen with the title the “Father with privatized state-owned enterprises, encouraging of CSR”. McGuire (1963: 144) took the view that the new private enterprises, and lifting of many barriers to idea of social responsibility supposes that the corporation foreign trade, direct foreign investment, and capital flows has not only economic and legal obligations but also from abroad. certain responsibilities to society, which extend beyond

1 . Research Scholar, Department of Management, Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya, Kanchipuram. 2. Research Scholar, Department of Management, Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya, Kanchipuram. I

Special Issue November 2015 Page 15 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 these obligations. Davis (1960: 70) described CSR as, and social sectors, creating opportunities (Swanson, businessmen’s decisions and actions taken for reasons 1995). Taking up CSR has become part of an at least partly beyond the firm’s direct economic or organization’s objectives and reflected in their strategies technical interest. The United Nations Industrial (Campbell et al., 1999; Hanke and Stark, 2009; Holliday, Development Organization (UNIDO) has defined 2002; Silberhorn and Warren, 2007). corporate social responsibility (CSR) as “a management India: From Charity To Philanthropy And Now CSR concept whereby companies integrate social and environmental concerns in their business operations and Religion shapes the value system and motivates giving interactions with their stakeholders. CSR is a way in in most societies. (Fosdick 1952, Chernow 1998). India which companies achieve a balance of economic, has a long tradition of charity that is rooted in the environmental and social imperatives.” theological concept of “Dana” or almsgiving and the notion of almsgiving is associated with achieving salvation The concept of CSR is not new but CSR now, is a focal through self-effacement. In India tradition of charity is point developed as part of stakeholders’ commitment to imbibed in the ethos of culture and religion from olden the society around their firm’s existence. The focus of days .The concepts and stories of charity are such CSR was not constant it was dynamic to choose interspersed in the historical epics, scriptures, and areas which in turn promoted the business motives and stories of the India. Giving time, effort and wealth to name in a sublime way garnering good vibes to the another human being stems from the imbibed cultural organizations in the populace where they do business. roots of the country. CSR has been described as an ambiguous (Fisher, In India the public sector laid foundations of philanthropy 2004), vague (Williamson et al, 2006), subjective in a big way. They were the temples, which imbibed the (Frederick, 1986), unclear (McWilliams, 2001), democratic principles of government, and the focus on amorphous (Margolis and Walsh, 2001), fuzzy concept social development of all stakeholders was part of (McGuire, 1963) with unclear boundaries and debatable unwritten cornerstone of public sector existence. Social legitimacy (Lantos, 2001). Meeting corporate social awareness programs were the earlier philanthropic responsibilities not only allows organizations to display programs in the domain of the public sector, which high levels of moral or ethical conduct, but it is seen as graduated now to be known as corporate social providing instrumental benefits and various types of responsibility programs. competitive advantage such as superior financial performance, enhanced reputation, more motivated work But the CSR fame & rage was set more in the nineties. forces, the ability to attract desired employees etc. Organizations’ main objective is known to be the profit, but the recent scandals changed the focus on good There has been a significant increase in interest in CSR corporate governance practices, social responsibility, and in recent years (Basu and Palazzo, 2008; Angelidis et transparency. (Huse, 2005). Business ethical conduct al, 2008; Young and Thyil, 2009; Park and Lee, 2009; is a vital part of Corporate Social Responsibility (Carroll, Gulyas, 2009; McGehee et al, 2009) and is now at its 1991). most prevalent (Renneboog et al, 2008; Turker, 2009a) representing an important topic for research (Burton and Corporate Social Responsibility (CSR) generally refers Goldsby, 2009). Recent corporate scandals have to the social and environmental consciousness of the attracted public attention and highlighted once more the firm, CSR has been identified as a macro-level activity importance of CSR (Angelidis et al, 2008; Evans and that has macro level consequences (Orlitzky, Schmidt, Davis, 2008). Not only has this topic received academic & Rynes, 2003). attention (Burton and Goldsby, 2008) but it is becoming Any new company or entity that comes into existence a mainstream issue for many organizations (Renneboog takes a toll in the society it exists in terms of et al, 2008; Nijof and Brujin, 2008). It is now widely encashment of natural resources used and depleted and recognized by business leaders that their companies also the impact of the processes on the environment. need to accept a broader responsibility than short-term Hence ethically it becomes a moral obligation of the profits (Knox et al, 2005). companies to contribute voluntarily to the society. And CSR tools can be used by the organizations for direct As time went by, CSR has been conceived as a tool outreach to the society as social investment. With a able to create a win-win situation for society and vibrant democratic basis, CSR is a very important tool organizations, creating good corporate reputation and for promoting equitable democratic growth of business. image and bringing in more business and profits consequently (Campbell et al., 1999; Kanter, 1999; There is a growing realization towards contribution to KPMG, 2008; Yu, 2003). It was suggested that social activities globally with a desire to improve the partnerships can be established between organizations immediate environment (Shinde, 2005). It has also been

Special Issue November 2015 Page 16 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 found that to a growing degree of companies that show setting up of a CSR committee, which shall be genuine attention to the principles of CSR behavior are responsible for decisions on CSR expenditure and type also favored by the public and preferred for their goods of activities to be undertaken. This committee shall and services. consist of three or more directors, with at least one The last decade of the twentieth century witnessed a independent director whose presence is expected to swing away from charity and traditional philanthropy ensure a certain amount of democracy and diversity in towards more direct engagement of business in the decision-making process. The CSR Clause will only mainstream development and concern for disadvantaged apply to some of the over 800,000 companies in India, groups in the society. This has been driven both internally including over 8,000 publicly listed companies and by corporate will and externally by increased multinational companies. The accounting firm Ernst & governmental and public expectations (Mohan, 2001). Young estimates that the law would cover over 2,500 companies in India and generate over U.S. $2 billion of INDIA: CSR & Companies Act 2013 CSR spending in local communities. Prior to 2012-13, In order to enhance and ensure the participative function many firms were voluntarily making donations and of the industry in the growth saga of the country the spending on community development and mitigation of government in the unprecedented move has bought in environmental pollution. It is only since 2012-13 that mandatory CCSR expenditure provision for the private firms have started allocating funds for CSR activities companies and Public sector companies through the specifically. new Companies Act 2013 Securities and Exchange Board of India (SEBI) circular The most of the charity and philanthropy approach has dated August 2012 mandated all top 100 listed not taken up issues such as social Justice, equity and companies to include business responsibility report as human rights still largely remain untouched by the new a part of their annual report. In the new Act the disclosure philanthropy. The challenge of the social justice of CSR Activities is made Compulsory. philanthropy has also to do with lack of active Challenges of CSR Now government policies in the regard. Corporate Social Responsibility (CSR) law has came India made history with a path breaking amendment by into effect on April 1, 2014. The Companies eligible under the new Companies Act 2013 in the field of CSR, section 135 of the Companies Act 2013 have embraced replacing its fifty-seven-year old Companies Act of 1956. the law and has initiated a number of CSR projects The Government of India made it mandatory for across the entire spectrum as defined within schedule companies to undertake CSR activities for bringing in VII of the Act. For companies which had been into CSR inclusive growth of the social stakeholders of company before the law in force, the need was to streamline the and also to streamline the philanthropic activities with spending to fit requirements of the act. The Act propelled more accountability and transparency. Clause 135 of the need to review and strategize the CSR spending the act defines the CSR and it is applicable to under a formal committee for the CSR working group. companies, which have an annual turnover of Rs 1,000 crores or more, or a net worth of Rs 500 crores or more, The new CSR initiative also made emerge the need to or a net profit of Rs 5 crores or more. quantify impact of the CSR activities .This made the companies put in place new strategies, approaches and The new clause of at least 2% of their average profit in inclinations of various CSR activities that are in strong last three years has to be spend mandatory for CSR alignment to the broader vision, policy and priorities of activities. The wide spectrum of activities under CSR, the company. New strategies of the companies on CSR which can be taken by companies, cover activities such focus is to owning up a cause and making it their CSR as promotion of education, gender equity and women’s identity with employee engagement. empowerment, combating HIV/AIDS, malaria and other diseases, eradication of extreme , contribution But have the scaled up CSR initiatives helped in to the Prime Minister’s National Relief Fund and other development impact perceived by the bill with the benefits central funds, social business projects, reduction in child to the new push in CSR cater to a wider population. mortality, improving maternal health, environmental Also have companies choose to look out new areas of sustainability and enhancing vocational CSR and pilot development activities and initiatives for skills among others. the collaborative effort of development that the government expects from the new provisions of the Act. In the new Act the companies can carry out these Stakeholder expectations are constantly in change and activities by collaborating either with a NGO, or through a company’s CSR communication must be evaluated their own trusts and foundations or by pooling their on a frequent basis (Morsing & Schultz, 2006:325). resources with another company. The law also entails

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With this rule the government has initiated a historic and the state PSU was involved in manufacture of fine step of fund diversion from the profits of corporate world chemicals. All the public sector units were companies to areas where governmental agency reach is restricted. having turnover more than 500 crores. Government also leveraged the chance to use The research methodology consisted of review of professional managerial skills of the corporate world to literature, based on which interview with selected Senior identify and implement philanthropy in a more structured Officials working in the related fields and departments and professional way. Managers must accept that were done, which helped in preparation of a questionnaire businesses are a societal construction and that consisting of segments of CSR relationship to corporate managers have an obligation to create benefits for governance, effect of new Companies act 2013 and steps members of their society (Carroll, 1984, Gray et, at, to increase the effectiveness of CSR performance. (1996). CSR broadens the relevant range of corporate Objectives of the study is to establish the influence & performance criteria beyond short-term profitability and need of CSR in corporate performance contexts, growth to include the long-term interests of multiple determine the effect of changes in CSR by the stakeholders that are recognized as being critical to a implementation of the new Act, which in turn influences corporation’s success (Davis, et al., 1997, Donaldson, Corporate & Social Governance performance parameters. et al., 1991). Harmonizing with international norms, fraud A set of hypothesis was formulated, intended to be reduction measures, new government powers, and checked by the questionnaire analysis was as follows accountability provisions are all important new facets expected of the Bill. Hypothesis Testing But the pertinent question that arise is that how would A Hypothesis is an assumption about a population of companies align these government mandated CSR the study. Hypotheses are predictions that involve activities to handle India’s socio-environmental variables and statistical data’s followed by tests. They developmental challenges while also enabling better long are tentative assumptions made in order to draw out term profits for the business they are in. Can government- and reach conclusions based on hypothesis testing mandated CSR be a social development path for a nation? (Research Methodology, C.R. Kothari). The various The challenges and concerns about the motives and hypothesis developed for this study is given below. implementation of this new act based CSR activities Hypothesis 1 (for Part A in questionnaire) are eagerly awaited. Some of the concerns that arises Null : There is no significant relationship between are listed as : Corporate Governance & CSR. Can the new way become another way of siphoning of Alternate : There is a significant relationship between public money from public sector companies by the Corporate Governance & CSR. political establishment in power and can the philanthropy be a new way of funding political aspirations under the Hypothesis 2 (for Part B & C in questionnaire) shade of CSR for benefits of mutual help. Null : CSR performance will not be enhanced by Companies Act 2013. How effectively can be the CSR funding be monitored and is there a need for CSR audit of corporate activity Alternate : CSR performance will be enhanced by by external agency to check effectiveness of spending.. Companies Act 2013. Can the social aims of the government be pursued by Hypothesis 3 (for Part D in questionnaire) the CSR choice to corporate, by which the choosing of Null : Effectiveness of CSR performance cannot suitable area that pays non-economic dividend will be be enhanced. chosen by the corporate. Alternate : Effectiveness of CSR performance can be And will the social change that govt. envisages by this enhanced. CSR activity really change the way philanthropy is handled in the country and can conflict of interest ruled Data Analysis and Interpretation out in area chosen by corporate for CSR. The results of the empirical analysis are being discussed in this section. By using SPSS, the statistical analysis Research Methodology of this research was carried out. Data analysis comprised The research design for this study involved a questionnaire of Reliability Tests, Test for Normality, Correlation survey administered to a sample of executives and public analysis and Paired samples T- Test. servants handling the functions of Corporate Governance Step 1: Reliability Analysis and CSR in Public Sector firms. For the research Public Sector companies were selected were in the By doing the Reliability of the variables an overall picture manufacture of fertilizers, pesticides, refinery, rare earths of the study was obtained. From the reliability analysis

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Cronbach’s Alpha obtained is .989 and indicates best Results accuracy of the measuring instrument. Strong positive correlations are obtained in our study, Reliability test was done for the response of each which shows that the selected variables are highly question, which is, enclosed as annexure I. Obtained relevant (i.e. there exists a strong relationship between value is greater than 0.9. Hence excellent Corporate Governance and CSR) Reliability Statistics Step 4: T-Test Cronbach’s Alpha N of Items A paired t – test is used to determine whether there is a significant difference between the average values of the .989 31 same measurement made fewer than two different Overall Effectiveness of CSR conditions. Both measurements are made on each unit in a sample, and the test is based on the paired 10 differences between these two values. The usual null hypothesis is that the difference in the mean values is 8 zero. For all the factors the p value is < .05. There exists a significant difference between the groups for 6 the factors taken. The table shown below clarifies the study results. The paired t-test conducted, the p value 4 Frequency obtained is less than 0.01. Hence the null hypothesis is rejected and alternate hypothesis is accepted in all the 2 three cases.

Hypothesis-1 0 50 75100 125 150 Result Fig. 1 Null: There is no significant relationship Mean = 119.95 between Corporate Governance & CSR Std. Dev. = 20.323 N = 60 Alternate: There is significant relationship between Corporate Governance & CSR Once the Reliability analysis is over, the next stage is There is a significant relationship between Corporate to check whether this study follows a Normal Distribution Governance & CSR as t value is positive and p value is or not. Histograms and P-P plots are used for the test. less than 0.01

Step 3: Correlations Hypothesis-II Correlation is a term that refers to the strength of a Result relationship between two variables. It is used to show Null: CSR performance will not be enhanced whether and how strongly pairs of variables are related. by Companies Act 2013 The main result of correlation is called a correlation Alternate: CSR performance will be enhanced by coefficient “r”. The closer the value of r towards +1, the Companies Act 2013 more closely two variables is related. CSR performance will be enhanced. There exists a Normal p-p Plot of overall Effectiveness of CSR significant positive relationship such that Companies Act 1.0 2013 will enhance CSR performance.

0.8 Hypothesis-III Result 0.6 Null: Effectiveness of CSR performance cannot be enhanced through the steps adopted 0.4 Alternate: Effectiveness of CSR performance can be Expected Cum prob 0.2 enhanced through the steps adopted. Effectiveness of CSR performance can be enhanced. 0.0 There is a significant relationship between the steps 0.0 0.2 0.4 0.6 0.8 1.0 adopted and the CSR effectiveness and the effect is Observed Cum Prob positive. Fig. 2

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Conclusion • Aggarwal, Reena, Leora Klapper, and Peter D. Traditionally, development has been the responsibility Wysocki (2005), “Portfolio Preferences of of the government, but since public delivery of goods ForeigInstitutional Investors,” Journal of Banking and and services has been riddled with corruption and Finance, vol. 29, pp. 2919- 2946. bureaucratic inefficiency and the schemes is • Agle, B. R. & Caldwell, C. B. 1999. Understanding plugged with leakages. Research on Values in Business: A Level of Analysis The law is very significant, because India is at the Framework. Business & Society, 38(3), 326-387 threshold of demographic dividend, and there is an urgent • Baker, R.L., Bealing, W.E., Nelson, D.A., Staley, need for the creation of human and physical capital to B.A. (2006), “An Institutional Perspective of the reap its rewards. Investment in education, health, skill Sarbanes Oxley Act”, Managerial Accounting Journal, development and social infrastructure will enhance Vol. 21, No. 1, PP23-33. capabilities of the youth by improving their nutritional, • Campbell, L., Gulas, C. S. & Gruca, T. S. 1999. skill and educational level, which in turn will better their Corporate giving behavior and decision-maker social employment prospects. CSR is being seen as an consciousness. Journal of Business Ethics, 19(4), alternative to governmental provision of merit goods. CSR 375-383 will increase availability of funds for welfare activities and • Carroll, A.B. & Hoy, F. 1984, “Integrating corporate may to delivery of goods and services to the people social policy into strategic management, Journal of in a cost-effective manner. The clause on CSR is a step Business Strategy, Vol. 4 (3), pp.48-57 towards achieving social and environmental • sustainability, which will benefit society in future. Davis, J. H., Schoorman, F. D. & Donaldson, L. 1997. Towards a stewardship theory of management’, The new provisions of the companies act is definitely Academy of Management Review, 22, pp. 20–47. going to better the CSR growth in the country but • Dawkins, J. & Lewis, S. 2003. CSR in stakeholder channelizing of the CSR funds in an constructive way expectations: and their implication for company and equitable development all over the country needs to strategy, Journal of Business Ethics, Vol. 44 (2/3), be ensured. The study highlights the needs for pp.185-93. innovations and enterprises in CSR initiative of Indian • companies for sustainable inclusive growth. Some De George, R. (2006). Business Ethics. New Jersey: limitations might constrain the generalizability of the Pearson Prentice Hall interpretations and findings of the study; however the • Donaldson, L., & Davis, J. H. 1991. Stewardship results of the current study are somewhat consistent theory or agency theory: CEO governance and with the proposal of challenges to CSR. Organizations shareholder returns, Australian Journal of should also clearly emphasize the importance of those Management, 16(1), 49-64. challenges while managing their CSR practices in this • Enderle, G. 2004, Global competition and corporate regard to capitalize on its human capital potential leading responsibilities of small and medium-sized to better organizational outcomes. The new CSR activity enterprises, Business Ethics: A European Review, if not watched would lead to ‘tick box’ behavior, tokenism Vol. 13 (1), pp.51-63. or even corruption, forced philanthropy, and masking of • Goergen Marc, International Corporate Governance, data to avoid having to comply regulations. In order to 2012, p.7 have the transparency in doing business, the companies • Gray, R, Owen, D. & Adams, C. 1996. Accounting should involve their CSR activities spending in the annual and Accountability; Changes and Challenges in reports besides the other sections along with the Corporate Social and Environmental Reporting, effectiveness and benefits given to the stakeholders after Prentice-Hall Europe, Harlow. a third party audit. What kind of monitoring there’ll be in terms of how well this money is used only time will show • Huse, M. (2005) Accountability and creating if this legislation will have a real impact on poor people’s accountability: A framework for exploring behavioral lives and prevent actual environmental degradation. perspectivesof corporate governance, British Journal of Management, 16: 65–79 Bibliography • Kelly, M. & Oliver, G. (2003). Reflections on business • Adams, C.A. 2004. The ethical, social and decision making: Time for A paradigm shift?, Journal environmental reporting: performance – portrayal gap, of Academic Ethics, 1(2), 199-215. Accounting, Auditing & Accountability Journal, Vol. • La Porta, R., Lopez-de-Silanes, F., Shleifier, A., and 17(5), pp.731-57. Vishny, R., (2000), “Investor protection and corporate governance”, Journal of financial economics, Vol. 58, No. 1-2, pp3-27.

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• Letza, S., Sun, X. & Kirkbride, J. Smallman, C., • Rousseau, M., & McLean Parks, J. (1993). The (2004), “Shareholding vs. stakeholding: a critical Contracts of Individuals and Organizations. In B. M., review of corporate governance”, Corporate Staw, & L.L., Cumming (Eds.), Research in governance, Vol. 12, No. 3, pp242-262. Organizational Behavior (pp. 1-43). Connecticut: JAI • McKenna, E. (1994). Business Psychology and Press. Organizational Behavior. New Jersey: Lawrence • Saunders, M., Lewis, P., Thornhill, A. (2007), Erlbaum Associates. Research methods for Business students, 4th Edition, • Mohan, A. (2001), “Corporate citizenship: Prentice Hall. perspectives from India”, Journal of Corporate • Solomon, J., (2007), corporate governance and Citizenship, Vol. 12 No. 2, pp. 107-17. accountability, 2nd edition, John Wiley and son’s ltd, • Orlitzky, M., Schmidt, F., & Rynes, S. (2003). Wiltshire. Corporate Social and Financial Performance: A Meta- • Ungureanu Mihaela, Models and Practices of analysis. Organization Studies. Corporate Governance Worldwide, Volume:4, Issue: • Plessis Jean Jacques Du/Hargovan Anil and Bagaric 3a, 2012, p.625 (pp.625-635) Mirko, Principles of Contemporary Corporate • World Bank Report (2005), India: Role of Institutional Governance, Cambridge University Press, Second Investors in the Corporate Governance of their Edition, November 2010, p.3 Portfolio Companies. • Rezaee, Z (2008), corporate governance and ethics, 1st edition, John Wiley and sons, USA.

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A STUDY ON EMPLOYEE ENGAGEMENT AMONG IT SECTOR EMPLOYEES IN KERALA

C V Lolitha1 Dr. Johney Johnson2

Abstract Employee engagement has been an area of interest among many researchers and it had received a greater recognition among consulting firms. Employee engagement is the state in which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work. It has been observed that modern organizations are emphasizing a lot on practicing employee engagement looking at the benefits earned by having ‘high engaged employees’ in their organizations. It is therefore, important to identify the low engaged employees and replace them with high engaged employees in order to develop the employees and organization as a whole. This article presents an assessment on the level of employee engagement among IT sector employees in Kerala. This study helps to understand the various concepts of employee engagement as it reinforces previous literature on the construct of engagement followed by analysis, discussion and conclusion. Key words: Employee Engagement, Commitment, Job Engagement and Organizational Engagement

Introduction various research institutes, consulting companies, and IT industry has always been facing the challenge of their clients. It has been used in reference to a variety of extremely high employee turnover. Companies take a employee attitudes, for example employee satisfaction, deep interest in their employee turnover rate because it trust, motivation, willingness to work, Organizational is a costly part of doing business. High employee commitment etc. One of the problems with the construct turnovers imply low employee commitment towards the is that many of the definitions of employee engagement organization. This study is an attempt made to examine invoke existing constructs, such as job satisfaction, the relationship of employee engagement with organizational organizational commitment, organizational citizenship commitment of IT (Information &technology) sector behaviors and job involvement, but they do not employees in select organizations in Kerala. demonstrate the relationship of employee engagement to those other constructs. For identifying the general antecedents of employee engagement, literatures as well as models developed According to Kahn (1990) a dynamic, dialectical by consulting organizations were reviewed. Since the relationship exists between the person who drives personal employee engagement construct is still relative recent, energies (physical, cognitive and emotional) into his or both literature and consulting models are examined so her work role on the one hand, and the work role that allows as to gain insights and obtain contributions from practice, this person to express him or herself on the other hand. in addition to the academic data. Schaufeli et al. (2002) define engagement as a positive, fulfilling, work-related state of mind that is characterized Objectives of the Study by vigor, dedication, and absorption. Rather than a • To ascertain the extent to which employee momentary and specific state, engagement refers to a engagement (both job and organizational) relates to more persistent and pervasive affective-cognitive state organizational commitment among select IT that is not focused on any particular object, event, companies in Kerala. individual or behavior. • To determine the level of employee engagement by Robinson et al. (2004) consider work engagement as a demographic variables (age, gender, work experience positive attitude held by the employee towards the and educational qualification). organization and its values. They opine that an engaged employee is aware of the business context, works with Literature Review colleagues to improve performance within the job for the Employee engagement has become the new buzzword benefit of the organization. Engagement is a two-way and obsession of HR departments. Yet, the term relationship between employer and employee. It overlaps “engagement” has been used quite inconsistently by the with commitment and organizational citizenship behavior,

1 . Research Scholar, School of Management and Business Studies Mahatma Gandhi University, Kottayam, Kerala. 2. Assistant Professor, School of Management and Business Studies, Mahatma Gandhi University, Kottayam, Kerala

Special Issue November 2015 Page 22 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 but it is two-way relationship and is “one step up” from Items were written to assess participant’s psychological commitment. presence in their job and organization. A sample item Social Exchange Theory (SET) provides a stronger for job engagement is, I really “throw” myself into my theoretical rationale which can be used to support job” and for organization engagement”. Being a member Kahn’s views on engagement. The foundation of SET is of this organization is very captivating”. The scale that these relationships develop over time leading to demonstrated an internal consistency (alpha) reliability trust, loyalty, and mutual commitment. In order to achieve of .713 for organizational engagement and .696 for job this desirable stage, both parties must follow specific engagement in the current study. Organizational ‘rules of exchange’. These ‘rules of exchange’ involve commitment of the respondents was measured using reciprocity in such a way that the actions of one side the six-item affective commitment scale by Rhoades et create a response or repayment actions by the other al (2001).A sample item for commitment in this study side. The level of engagement will vary based on the is, “I feel a strong sense of belonging to my organization”. resources they receive from their organizations. Saks The cronbach’s alpha value for organizational commitment concludes that resources – economic, social and scale was .884, which is highly reliable. Participants emotional – provided by the organization will dictate the indicated their response on a five-point Likert -type scale quantum of physical, cognitive and emotional energy an with anchors (1) strongly disagree to (5) strongly agree. individual will bring to his work. Hypotheses Research Methodology H1 : Organizational engagement is positively related to The data for this study was collected from employees of organizational commitment among employees in IT sector companies in Kerala.Research participants IT companies. (N=60) was selected based on a convenient sampling process. Data was collected through online H2 : Job engagement will be positively related to questionnaire from 60 employees each from IT sector organizational commitment among employees in organisations in Kerala irrespective of their current IT companies position .The study analysed the 60 responses out of H3 : Job engagement will be positively related to 75 responses collected, which were useful and complete organizational engagement among employees in and the rest 15 unfilled were left out .A three section IT companies online questionnaire was used for data collection. The H4 : There will be a significant positive relationship first section of the questionnaire consisted of 5 items between demographic variables of the respondents inquiring about demographic characteristics of and employee engagement among employees in respondents such as employees’ gender, age, IT companies educational qualification, and work experience. The second section consisted of questions related to Hypotheses Testing measure employee engagement (job and organizational). The hypothesis sought to investigate the extent to which The third section consisted of questions related to job and organizational engagement is related with measure organizational commitment. organizational commitment. The hypothesis was Measures investigated using Pearson correlation coefficient. Both job engagement and organization engagement was Summary of the results are presented in Table - 1 below measured by two six-item scales used by Saks (2006).

TABLE - 1: Correlations

ORGCOMMITMENT ORGENGAGEMENT JOBENGAGEMENT ORGCOMMITMENT Pearson Correlation 1 .550** -.158 Sig. (2-tailed) .000 .228 N606060 ORGENGAGEMENT Pearson Correlation .550** 1 .268* Sig. (2-tailed) .000 .039 N606060 JOBENGAGEMENT Pearson Correlation -.158 .268* 1 Sig. (2-tailed) .228 .039 N606060 **. Correlation is significant at the 0.01 level (2-tailed).

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InterpretationFrom Table 2 above, in case of employees from IT sector, there is highly positive significant relationship between organisational engagement and organisational commitment [r=.550**, p<0.05]. Hence we accept H1. There is no significant relationship between job engagement and organisational commitment [r=-.158, p isnot less than .05].].Hence we reject H2 .There is a significant positive correlation between job and organization engagements[r=.268*, p<0.05]. Hence we accept H3. TABLE - 2 : Influence Of Age On Employee Engagement ANOVA EMPLOYEE ENGAGEMENT

Comparison Sum of Squares Df Mean Square F Sig. Between Groups 4.519 4 1.130 4.483 .002 Within Groups 32.004 127 .252 Total 36.523 131 Source: Primary Data TABLE - 3 : Influence of Work Experience on Employee Engagement ANOVA EMPLOYEE ENGAGEMENT

Comparison Sum of Squares Df Mean Square F Sig. Between Groups .879 3 .293 1.052 .372 Within Groups 35.644 128 .278 Total 36.523 131 Source: Primary Data Table - 4 : Influence of Educational Qualification on Employee Engagement ANOVA Employee Engagement

Comparison Sum of Squares Df Mean Square F Sig. Between Groups 3.165 3 1.055 4.048 .009 Within Groups 33.358 128 .261 Total 36.523 131 Source: Primary Data

Interpretation The one-way ANOVA was carried to find out if there is any influence on employee engagement by age, work experience and educational qualifications of the respondents and it is shown in Table 2, Table 3and Table 4 respectively. From the tables mentioned above, it can be known that the demographic characteristics of the employees such as age (since p=.002, p<0.05) and educational qualification (since p=.009, p<0.05) has significant influence on the level of employee engagement among IT sector employees. But it was known that work experience has no influence on the level of employee engagement among employees in IT companies.

Discussion The study adopted a survey method to study employee engagement and organizational commitment. The data analysis was done using SPSS 21version. The responses to this study were made up 88% of respondents comprising of the senior management, middle management and juniors. 60.6% of the respondents were male with 39.39% the respondents being female. The hypothesis that there will be a positive significant relationship between employee engagement (job and organization) and organizational commitment was supported by the analysis shown in Table 1. Pearson correlation coefficient was used to analysis the correlation between the study variables such as organizational commitment, job engagement and organizational engagement. This finding implies that employees who are given the necessary resources by their organizations to perform their tasks effectively tend to respond favorably to the organizations they are committed to. This finding is consistent with results from a study conducted by Saks (2006) when he established that engagement of employees mediated the relationships between the antecedents and job satisfaction, organizational commitment, intentions to quit the job, and organizational citizenship behavior. From the analysis it was known that majority of the employees are properly engaged in their work and

Special Issue November 2015 Page 24 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 moderately committed. The findings of the study revealed References a significant positive relationship between employee • Bakker, A.B., and Demerouti, E. (2008), “Towards a engagement and organizational commitment. model of work engagement”, Career Development The One-way ANOVA analysis is used to determine there International, Vol. 13 (3), pp. 209-223. exists any significant and insignificant difference among • Corporate Executive Board. (2004), “Driving the means of two or more independent groups. Table2, performance and retention through employee Table 3and Table 4shows one – way ANOVA and shows engagement”, retrieved from analysis results of variance of demographic variables with www.corporateleadershipcouncil.com employee engagement. Results described that all • Fleming, J. H., Coffman, C., & Harter, J. K. (2005), demographic variables do show significant variation with “Manage your human sigma”, Harvard Business employee engagement. Age and educational qualification Review, Vol. 83, pp. 106–115. of the respondents show significant influence on the level of employee engagement but work experience have no • Gupta, K. (2008), “A Study of Employee Engagement influence for their level of engagement towards either their with Regard to Banking”, The Journal of Management job or their organization. Research, Vol. 17, No. 8, pp 7-26. • Kahn, W. A. (1990), “Psychological Conditions of Limitations Personal Engagement and Disengagement at Work”, The research was limited to IT sector employees in Kerala Academy of Management Journal, Vol. 33, pp-692- only. The employees of this dynamic industry are 724. ambitious and look out for better opportunities always. • Robinson, D., Perryman, S., &Hayday, S. (2004), For future consideration this study can be extended to “Job Engagement: Antecedents and Effects on Job larger sample in order to identify other factors which affect performance”, Academy of Managerial Journal, Vol. performance of IT employees and if data is also collected 53, No.3, pp- 617-635. from the other sector. In this regard, replicating this study • Saks, A. M. (2006). “Antecedents and consequences in different settings would be worthwhile to establish the of employee engagement”, Journal of Managerial validity and generalizing of the present findings across Psychology, 21(7), pp. 600-619. different contexts • Schaufeli, W.B., Salanova, M., Gonza´lez-Roma´, V. Conclusion and Bakker, A.B. (2002), “The measurement of We can conclude that the importance of employee engagement and burnout: A two sample confirmatory engagement in the organizational setting is undeniable. factor analytic approach”, Journal of Happiness Prudent practices of engaging employees should be Studies, Vol. 3, pp. 71 - 92. implemented in the organizations in order to enhance their commitment to the organization. Employees are the assets of any organization and organizations should adopt impeccable measures to engage their key performers to build a committed work force.

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A COMPARATIVE ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY REPORTING OF PUBLIC AND PRIVATE SECTOR BANKS IN INDIA

Clement Cabral1

Abstract This paper is a comparative analysis of public and private sector bank in India i.e. State Bank of India and ICICI bank on the basis of quality of the Corporate Social Responsibility report as per sustainability reporting indicators given by Global Reporting Initiatives. Data of two financial years i.e. 2012-13 and 2013-14 have been collected from publicly available information through company websites, annual reports, Business Responsibility report, third-party websites and other nonfinancial information disclosure used to gather base information for the study. Qualitative analysis has been conducted by using seven key quality aspect with the appropriate scoring weightage criteria assigned to each of the quality aspects. Results of this study show that the quality of CSR reporting of public and private banks are average. The quality can be improved by addition of certain indicators. Main limitation of this study is that it is based only on secondary data and sample size i.e. two banks, is small. This study can be conducted on larger sample size. Key words: Business Responsibility Report, Corporate Social Responsibility, Global Reporting Initiatives

Introduction development that will impact CR disclosure is the new Corporate social responsibility reporting plays a vital role Companies Act of India, 2013. The landmark legislation in performance of an organization. In order to sustain includes Corporate Social Responsibility (CSR) as a the long run the corporate are required to perform socially mandatory agenda item at the Board level and requires and economically. CSR reporting enables to improve companies to report on their CSR policy, governance organization’s value, governance, its commitment and initiatives along with CSR budget spent. The towards various stakeholders. In India, regulatory legislation advocates 2 per cent of net profits as a developments over the past three years have set the prescribed allocation for CSR expenditure. At the same momentum for higher CR reporting rates. time, markets have also responded with positive developments such as the launch of S&P BSE Greenex Release of National Voluntary Guidelines on Social, and Carbonex market indices which separately track Environmental and Economic Responsibilities of companies with better CR performance and disclosure Business (NVG-SEE) by the Ministry of Corporate frameworks. These domestic developments coupled with Affairs, India in 2011 was a key development to gain the international developments like the release of GRI G4 attention of the larger industry audience on the need for Guidelines is expected to significantly alter the CR adoption of CSR practices by businesses and for reporting scenario. Many individuals today are basing transparent CSR disclosure. This voluntary guidance their corporate loyalties on how companies are positively was progressively adopted by Securities Exchange Board impacting their community. A corporation’s public image of India (SEBI) in 2012 to mandate compulsory disclosure is at the mercy of its social responsibility programmers of adoption of NVG-SEE for the financial year ending on and how aware communities are of them. Despite being or after 31 December, 2012. The mandate, through a vital issue, there is scarce information to understand Clause 55 of the listing agreement with stock exchanges about CSR in India. The need for business transparency in India, makes Business Responsibility Reporting and accountability has strongly felt by stakeholders and compulsory for top 100 listed entities (by market shaped increasing demand for responsible corporate capitalization). Similarly, the Department of Public behavior and transparent corporate reporting. The Enterprise (DPE) has issued Guidelines on Corporate purpose of this study is to study how effectively CSR Social Responsibility and Sustainability for Central Reporting is being practiced by public and private sector Public Sector Enterprises which sets the requirements banks in India i.e. SBI and ICICI bank respectively. This for CR reporting to assess the overall performance of study helps to understand more about the present state Central Public Sector Enterprises. The other key of CSR disclosure in public and private banks in India.

1 . Lecturer, Department of Commerce, The Cochin College, Kochi, Ernakulam, Kerala.

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State Bank of India • Elementary education State Bank of India (SBI) is the nation’s largest and oldest • Skill development & sustainable livelihoods bank with a network of 15869 branches. The Bank’s three • Primary healthcare major products/services categories, each of which • Financial inclusion individually comprises of several products/services, are: Objectives of the Study Deposits, Loans and Advances and and Collections. Corporate Social Responsibility is integral • To study about Corporate Social Responsibility part of the State Bank of India covering various social, Reporting environmental and welfare activities. This is rooted in • To analyze the quality of Corporate Social the Bank’s belief that it owes a solemn duty to the less Responsibility Reporting of public and private sector fortunate and underprivileged members of the society to banks in India. make a sustainable social change in their development. Research Methodology In fact since 1973 the Bank is actively involved in nonprofit Data collection -To accomplish the above stated activity called Community Services Banking. All its objectives of the study, secondary data of the two branches and administrative offices throughout the financial year’s i.e. 2012-13 and 2013-14 have been country sponsor and participate in large number of taken into consideration. This data has been collected welfare activities and social causes. The budget for the mainly from Bank’s Corporate Social Responsibility (CSR) spending • for FY 13-14 was 1% of the previous year’s PAT which Company websites amounts to INR 141 crores. The Bank’s actual spend • Annual reports on CSR activities for FY 13-14 was INR 148.93 crores. • Business Responsibility report The Bank’s CSR activities touch the lives of millions of • Third-party websites the poor and needy across the length and breadth of the • Other nonfinancial information disclosure nation. While CSR is embedded in many of the Bank’s The Sample - For the purpose of study, the largest business initiatives it covers various social, environmental public sector bank in India, State Bank of India is selected and welfare activities. The Bank has a comprehensive and largest private sector bank in India, ICICI Bank is Corporate Social Responsibility (CSR) Policy, approved selected. These banks mandate through Clause 55 of by the Executive Committee of the Central Board in the listing agreement with stock exchanges in India August 2011. makes Business Responsibility Reporting compulsory. The focus areas of the Bank’s CSR activities are listed Statistical Tools Used - Percentage is used for here under: analysis. A checklist is prepared to study the Corporate • Supporting education. Social performance on the basis of social performance • Supporting healthcare. indicators given by GRI G3 guidelines. • Assistance to poor & underprivileged. Reliability of data - Data is collected from annual and • Environment protection. sustainability reports which are authentic and reliable • Entrepreneur development program. source of collecting secondary data as these reports • Help in National calamities. are audited externally. Results and Discussions - Qualitative analysis was ICICI Bank Limited conducted by using seven key quality aspect (maximum ICICI Bank Limited incorporated in Vadodara, India is a score of 100) with the appropriate scoring weight age publicly held banking company engaged in providing a criteria assigned to each of the quality aspects. The wide range of banking and financial services including seven key quality aspects were considered from Global retail banking, corporate banking and treasury Reporting Initiatives G3 Sustainability Reporting operations. As of 2014, it is the second largest bank in Guidelines. For detailed study these seven key quality India in terms of assets and market capitalization. The aspects were again divided into twenty five sub criteria Bank has approximately spent 2.0% of its average profit as mentioned. In order to quantify the data four points after tax for the three financial years ending March 31, (25/100) each was assigned to sub criteria. If sub criteria 2012, March 31, 2013 and March 31, 2014, on donations is present in the BR report, four points is assigned and & grants primarily to the ICICI Foundation for Inclusive absence attracts zero points. Two points is assigned if Growth (ICICI Foundation), and on the Bank’s financial the bank satisfies half of the criteria. The aggregate point inclusion initiatives. The above expenditure has been obtained by both banks are computed and scaled. If the undertaken by the Bank, directly and through ICICI aggregate point falls between 0-20, 20-40, 40-60, 60-80 Foundation, primarily on and 80-100 corresponds to very poor quality, poor quality, average, good quality and very good quality respectively.

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Findings Strategy, risk and opportunity Businesses today operate in an increasingly resource constraint world and are exposed to an array of sustainability mega forces which will impact the way businesses will operate in the long term. These mega forces are complexly interconnected with the potential to amplify the impacts multi-fold. Mega forces include deforestation, climatic changes, energy and fuel, material resource scarcity, water scarcity, population growth, wealth, urbanization, food security and eco system decline. Table - 1

Qualitative aspects Sub criteria State Bank of India ICICI Bank 1.Strategy, risk and 1.1 Awareness on social and environmental mega forces 4 4 opportunity and their impact on the business 1.2 Understand and, ideally, quantify the resulting risks 2 2 and opportunities 1.3 Strategy in place to minimize risk and exploit 4 4 opportunities and is clear about the actions taken Total 1 0 1 0

With ever expanding global complex supply chains and diverse customers’ base, companies will have to demonstrate the understanding of a full range of impacts of these sustainability mega forces and articulate appropriate strategies to minimize risks and maximize opportunities that these mega forces present as well as in the future. Yes, SBI and ICICI bank are aware on social and environmental mega forces and their impact on the business. Among the mega forces, SBI gave more importance to environmental mega forces such as energy and fuel, climatic changes, deforestation, ecosystem decline and material resource scarcity. But, there is no mention about water scarcity. SBI states social mega forces such as food security and urbanization. CICI bank gave more importance only to environmental mega forces such as climatic change, energy and fuel, material resource scarcity, water scarcity and ecosystem decline. The Bank through its Technology Finance Group assists projects that promote clean technology, preserve biodiversity and protect the environment. ICICI Foundation focuses on social initiatives such as elementary education, sustainable livelihoods, primary healthcare and financial inclusion. Yes, SBI and ICICI bank understand about the risks and opportunities, and but, fails to quantify the resulting risks and opportunities. Both banks has understanding about several opportunities such as innovation, cost savings, improving market position, improving reputation, improving employee motivation etc. However banks fail to quantify these risks and opportunities. Yes, there are strategies in place to minimize risk and exploit opportunities and is clear about the actions taken. SBI introduces sustainable products and services such as SBIePay for e-commerce, State Bank MobiCash Easy – a mobile wallet, Green Channel Self Service Kiosk, Green Remit Card, prepaid cards like Smart Payout card, Ez Pay Card, VishwaYatra Card etc. are some of the initiatives of the Bank’s green initiatives and have social benefits also. ICICI bank provides sustainable banking products to cater to different classes of customers through an expansive ATM network, mobile, phone, internet, doorstep banking. Customized products include personal loans, home loans, loans for asset purchases and a wide range of accounts and deposits. The Bank also offers a selection of cards for convenience to complement the distinct lifestyle needs of customers. In addition, the Bank’s Rural & Inclusive Banking Group focuses on rural and below poverty line customers. 2. Materiality Materiality means the information in a report should cover topics and Indicators that reflect the organization’s significant economic, environmental, and social impacts or that would substantively influence the assessments and decisions of stakeholders.

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Table - 2

Qualitative aspects Sub criteria State Bank of India ICICI Bank 2.Materiality 2.1 Clear identification and disclosure of all material 4 4 issues 2.2 Regular materiality assessment which is an ongoing 0 0 process to assess the changing significance of issues to the business and its stakeholders 2.3 Consideration of internal and external stakeholders’ 0 0 inputs for assessing materiality 2.4 Management approach for material issues to improve 4 4 performance over a period of time. Total 8 8

Yes, Business Responsibility Report of SBI has clear identification and disclosure of all material issues. SBI, under community service banking, various welfare and social activities are undertaken by the Bank both in Banking and Non-Banking areas to raise the quality of life of the downtrodden and under-privileged sections of society Environmental factors are achieved by launching sustainable products and services, environmental friendly initiatives etc. ICICI bank has clear identification and disclosure of all material issues. The Bank through its Technology Finance Group (TFG) involved in social initiatives such as soft loan/grant assistance to entities engaged in a number of activities that benefit the under-privileged, including medical research & facilities and vocational training & rehabilitation of physically challenged persons (including defense personnel who have suffered injuries as a result of which they are unable to continue in the defense forces). The environmental initiatives undertaken through Technology Finance Group (TFG) includes soft loan/equity/grant assistance for development & distribution of fuel efficient cook stoves & solar lanterns, seed-stage sustainable energy and clean technology development and wildlife & forest conservation. There is no regular materiality assessment in SBI and ICICI bank, which can be considered as an ongoing process to assess the changing significance of issues to the business and its stakeholders Both banks have no consideration of internal and external stakeholders’ inputs for assessing materiality The banks have management approach for material issues to improve performance. SBI has laid down a well- defined Code of Conduct for its Directors on the Central Boarded and ICICI through the Group Code of Business Conduct & Ethics. This Code of Conduct attempts to set forth the guiding principles on which the Bank operates and conducts its daily business to improve performance. Targets and indicators Well defined targets and key performance indicators (KPIs) are important for companies to achieve continual improvement and to drive innovation. Targets have to be linked to material CSR issues. Clear baselines need to be established along with timelines to monitor progress and achievement. Targets have to be supported by defined KPIs to measure and manage the achievements. Table - 3

Qualitative aspects Sub criteria State Bank of India ICICI Bank 3. Targets and 3.1 Identify CR performance targets that are time-bound 4 4 indicators with a clear baseline and timeline 3.2 Assign targets to relevant material CR issues 0 0 3.3 Define KPIs for targets to measure progress against 0 0 targets 3.4 Disclose performance against CR targets. 0 0 Total 4 4

The budget for the SBI Corporate Social Responsibility (CSR) spending for FY 13-14 was 1% of the previous year’s PAT which amounts to INR 141 crores. The Banks actual spend on CSR activities for FY 13-14 was INR 148.93

Special Issue November 2015 Page 29 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 crores. ICICI has approximately spent 2.0% of its average profit after tax for the three financial years ending March 31, 2012, March 31, 2013 and March 31, 2014. No data to specify targets to relevant material CR issues. KPIs for targets to measure progress against targets are absent in the BR report of both banks Banks fail to disclose performance against CR targets. Supply Chain Corporate social responsibility issues beyond their own operations have a far greater impact on businesses and thus it is imperative for companies to identify such CSR issues across the value chain – environmental and social issues of supply chain; environmental and social concerns related to products and services. There is also growing stakeholder pressure on companies to acknowledge and address especially supply chain CR issues. Owing to the nature of complex supply chains and limited influence on customer choices, it is rather difficult to measure and mitigate value chain CR issues. This requires concerted efforts by companies to have constant dialogue and partnership with suppliers and also innovate for sustainable products and services. Table - 4

Qualitative aspects Sub criteria State Bank of India ICICI Bank 4.Suppliers and 4.1 Formal CR requirements for supply chain and 0 0 Value Chain development of mechanisms to improve supplier performance (such as a supplier code of conduct and CR criteria for supplier selection) 4.2 Involvement with suppliers to help them address their 4 4 CR impacts 4.3 Audit suppliers against code of conduct 0 0 4.4 Set targets for reducing the impact of supply chain and 0 0 measure the progress against these targets 4.5 Identification of social and environmental impacts 0 0 associated with the use and disposal of products and services. Total 4 4

Both banks has no formal CR requirements for supply chain and development of mechanisms to improve supplier performance Yes, SBI and ICICI bank has involvement with suppliers to help them address their CR impacts No, banks do not audit suppliers against code of conduct 4.4 No, SBI has no targets for reducing the impact of supply chain and measure the progress against these targets 4.5 State Bank of India has no identification of social and environmental impacts associated with the use and disposal of products and services State Bank of India and ICICI bank’s banking operations do not have a complex supply chain and thus the business partners i.e.Suppliers and distributors are also quite limited, which leaves very little scope for the engage them in its Business responsibility initiatives. The bank expects and encourages its supply chain to conduct their business in a responsible manner.

5. Stakeholder engagement The stakeholder engagement means identifying its stakeholders and explains in the report how it has responded to their reasonable expectations and interests. Stakeholder engagement processes can serve as tools for understanding the reasonable expectations and interests of stakeholders. Organizations typically initiate different types of stakeholder engagement as part of their regular activities, which can provide useful inputs for decisions on reporting.

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Table - 5

Qualitative aspects Sub criteria State Bank of India ICICI Bank 5.Stakeholder 5.1 A process in place to identify and engage key 4 4 engagement stakeholders 5.2 Response to stakeholder feedback and action taken 4 4 where necessary 5.3 Process to seek and gather stakeholder views on CR 0 0 reporting and performance and report these transparently Total 8 8

5.1Yes, the SBI has process in place to identify and engage key stakeholders. The Bank’s approach to stakeholder engagement helps to minimize risks, identify ideas for new products and Services, and understand and respond to the issues that matter to the communities it serves. The Bank communicates with the stakeholders through a variety of channels, such as e-mails, website, conference call, Press Meets, Advertising, one-on-one meeting, analysts’ meet and attendance at Investor Conference throughout the world. Stakeholder engagement is embedded in all areas of the Bank. The Bank seeks feedback through all their customer-facing channels, listens to all shareholders concerns and provides opportunities for employees to provide feedback. The engagement with stakeholders is through social media like Face book & twitter, and active participation in a variety of industry and community associations. ICICI bank through its various financial inclusion initiatives are expanding its outreach to rural and semi-urban markets and providing financial solutions to customers in this market. The banking and the financial services being provided by the Bank to the unbanked and below poverty line customers is providing an opportunity to the target customers to improve their livelihoods. ICICI Foundation encourages the active engagement of key stakeholders such as the Governments, NGOs, Panchayati Raj Institutions (PRIs), communities and other local institutions in the project planning and implementation to facilitate developing and building community ownership while ensuring the sustainability of the programmes Yes, State Bank of India has response to stakeholder feedback and action taken where necessary. The Bank’s vision statement clearly spells out the centricity of the customer in the Bank’s business strategies and operations. A multi-tiered structure of committees constantly review existing services and suggest improvements. Important issues raised by these Committees and action taken thereon, as well as analysis of the consolidated data for customer grievances for all Circles are placed before the Customer Service Committee of the Board every quarter, to identify common systemic and policy issues that require rectification. ICICI bank has response to stakeholder feedback and action taken where necessary. But elaborate details are not mentioned in the BR report. No, The Banks have no process to seek and gather stakeholder views on CR reporting and performance and report these transparently. Governance of CSR CSR governance structure at the apex levels with clearly defined roles and responsibilities demonstrates the commitment of an organization to integrate CR across levels and functions. Board level oversight on CR will enable the Board to understand broader CR trends that affect long term sustainability of the company and provide strategic guidance to address them. Table - 6

Qualitative aspects Sub criteria State Bank of India ICICI Bank 6.Governancefor 6.1 A primary person and/or function is assigned with the 4 4 CSR ultimate responsibility for CR at the highest levels of the organization 6.2 An individual/function is appointed to manage 4 4 sustainability on a day-to-day basis and report to the company Board 6.3 Linkage of CR performance to remuneration exists. 0 0 Total 8 8

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6.1 Yes, SBI and ICICI have a primary person and/or function is assigned with the ultimate responsibility for CSR at the highest levels of the organization. The Business Responsibility Policy is circulated across all Departments / Business Groups / Verticals of the Bank. Further, it is communicated to all employees through induction programs, orientation sessions and internal portals. The designated Nodal Officer (BR officer) heads the BR function of the Bank. He / She reports directly to the Managing Director & Group Executive (NB), and is responsible for implementation of the policy, identification of various initiatives and ensuring their effective implementation by the BR Function staff. The BR Officer, who would head the BR Function is responsible for implementing the BR initiatives, provide clarifications on the policy, guiding the staff in implementation, review the results, audit, impact assessment etc. 6.2 Yes, In SBI, an individual/function is appointed to manage sustainability on a day-to-day basis and report to the company Board. The head of each Bank unit (Branch / Department / Business Group / Vertical) is responsible for compliance of the BR Policy. He / She would update the BR Officer about the policy implementation, initiatives taken, discriminatory complaints received, cases of incidents of violation of freedom of association and collective bargaining etc. The BR Officer would update the Top Management. The BR Policy will be updated from time to time by the BR Officer i.e. General Manager (Corporate Communication & Change), in the light of amendments to laws, rules and regulations, as applicable, and an annual review report shall be submitted to the Board. In ICICI bank, the CSR Committee would comprise of three or more Directors including at least one independent Director. The Bank has a CSR Committee which is duly constituted in accordance with the provisions of the Act with respect to its composition and terms of reference. 6.3 Non existence of linkage in State bank of India and ICICI bank’s Corporate Social Responsibility performance and remuneration. 7. Transparency and balance Transparency can be defined as the complete disclosure of information on the topics and Indicators required reflecting impacts and enabling stakeholders to make decisions, and the processes, procedures, and assumptions used to prepare those disclosures. Table -7

Qualitative aspects Sub criteria State Bank of India ICICI Bank 7. Transparency 7.1 Acknowledgement of challenges, dilemmas and 2 2 failures, as well as achievements 7.2 Use of data to monitor performance year-on-year 4 4 7.3 Presentation of monitored performance, available to 4 4 stakeholders. Total 10 10 7.1 SBI’s BR report highlights more positive achievements and misses out reporting the key challenges and dilemmas.SBI has several achievements such as 10,000 of the 15,869 branches are located in rural and semi urban areas, leader in agricultural finance, have more than 48,000 ATM’s making it the one of the largest ATM networks in the world and its ATMs are located in all parts of the country including some of the remotest and inaccessible parts, one of the largest employers in the country having 2,22,033 employees, 100% coverage under financial inclusion in 31,729 villages during FY 2013-14 etc ICICI bank’s BR report highlights more positive achievements and misses out reporting the key challenges and dilemmas. The bank states about achievements such as launch of sustainable banking products to cater to different classes of customers through an expansive ATM network, mobile, phone, internet, doorstep banking. Customised products include personal loans, home loans, loans for asset purchases and a wide range of accounts and deposits. Selection of cards for convenience to complement the distinct lifestyle needs of customers etc. 7.2 State Bank of India and ICICI bank use data to monitor performance since 2012-13. 7.3 SBI and ICICI bank prepares Business Responsibility report in accordance with SEBI requirements and published on an annual basis. The BR report of SBI can be accessed at bank’s website http://www.sbi.co.in or http:// statebankofindia.com under the link Corporate Governance ’!CSR’!BR Report. The BR report of ICICI bank can be accessed at bank’s the hyperlink http://www.icicibank.com/aboutus/annual.html.

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Table - 8

Qualitative aspects Maximum points State Bank of India ICICI Bank 1. Strategy, risk and opportunity 12 10 10 2. Materiality 16 8 8 3. Targets and Indicators 16 4 4 4. Suppliers and Value Chain 20 4 4 5. Shareholder Engagement 12 8 8 6. Governance of CR 12 8 8 7. Transparency and Balance 12 10 10 Total 100 52 52

The above data indicates the score obtained by State Conclusion Bank of India and ICICI bank after assessing with seven Corporate Social Responsibility is a abroad subject which qualitative aspects. to variety of opinions and can be considered in a • SBI’s scores 52 points out of 100 points (falls in the number of different ways. CSR reporting has gained range of 40-60) which shows its CSR Reporting is prominence in India during recent year after voluntary average. guidance was progressively adopted by Securities • ICICI bank scores 52 points out of 100 points (falls in Exchange Board of India (SEBI) in 2012 to mandate the range of 40-60) which shows its CSR Reporting compulsory disclosure of adoption of NVG-SEE for the is also average. financial year ending on or after 31 December, 2012.The quality of CSR reporting of public and private sector banks • SBI and ICICI bank’s CSR reporting scores high points are assessed by seven qualitative indicators. The quality in strategy, risk and opportunities as well as of both CSR reporting is average and can be improved transparency and balance. by adjoining nonexistent indicators. CSR reporting is • SBI and ICICI bank’s CSR reporting scored lowest in now generally considered to be an integral part of strategy supply chain and satisfied only one criteria. for any organization and built into the strategic planning Suggestions process. In order to improve the quality of CSR Reporting the public This study was to analyze the quality of CSR reporting and private sector banks need to inculcate several and suggest remedies to improve the CSR reporting. qualitative sub criteria such as The study has accomplished its objective successfully. • Quantify the resulting risks and opportunities References • Continuous regular material assessment • Md. Abdul Kaium Masud, Mohammad Sharif Hossain, • Consideration of internal and external stakeholders 2012, “Corporate Social Responsibility Reporting inputs Practices in Bangladesh: A Study of Selected Private • Linkage of CSR performance to remuneration Commercial Banks” • Assign targets to relevant material CR issues • Namrata Singh, Rajlaxmi Srivastava,Rajni Rastogi 2013, CSR Practices & CSR Reporting in Indian • Define KPIs for targets to measure progress against Banking Sector, International Journal of Scientific and targets Research Publications, Volume 3, Issue 12, • Consideration of internal and external stakeholders’ December 2013 inputs for assessing materiality • S. K. Chaudhury, S. K. Das and P. K. Sahoo, • Identification of social and environmental impacts “Practices of corporate social responsibility (CSR) • Audit suppliers code of conduct in banking sector in India: an assessment,” research • Set targets for reducing the impact of supply chain journal of economics, business, volume 4, pp.76, and measure the progress against these targets 2011P. • Process to gather views on CSR reporting and • Debnath Rajeev Kumar, 2005, “Societal Governance performance from stakeholders and Reporting in India” in sustainability Reporting • Linkage of CSR performance to remuneration Concepts and Experiences, An Edited book, First edition, Page 134-144 • Acknowledgement of challenges and dilemmas

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• Babita Kundu “ Corporate Social Performance and • Suman Kalyan Chaudhury, Sanjay Kanti Das, Sustainability Reporting - A Comparative Analysis of Prasanta Kumar Sahoo, Practices of corporate social selected Indian Companies” International Journal of responsibility (csr) in banking sector in india:an Research in Economics and Social Sciences, assessment, Research journal of Economics, Volume 5, Issue 4, Page 156-165 Business And ICT,Volume-4,2011,Page no.-76. • KPMG (2013), India Corporate Responsibility • http://www.sbi.co.in/portal/documents/41076/60023/ Reporting Survey 2013 1403856255584_SBI_BR_13.06.14.pdf/02c5c712- • RBI Notification.(2007) .CSR in Indian Banks, 375b-4c97-9c5f-3ea7de70a800 Corporate Social Responsibility, Sustainable • http://www.sbi.co.in/portal/documents/41076/60023/ Development and Nonfinancial Reporting- Role of 1371711931453_BR_Report_2013.pdf/776d5e6f-fc2f- Banks,RBI/2007-08/216:DBOD No Dir.BC.58/ 4200-b12e-cf46360db7f0 13.27.00/2007-08,Dec.20. 2) • Sanjay Kanti Das, CSR Practices and CSR Reporting in Indian Financial Sector, International Journal of Business and Management Tomorrow ,Sept 2012, Vol. 2 No. 9. 11)

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INVESTOR’S PERCEPTION TOWARDS EQUITY AND NON EQUITY BASED INVESTMENT AVENUES

Cryshal Mathias1

Introduction India is agrarian based country and culturally Indians are safeguarding their interest against unpredictable future. Moreover the mixed economy pattern of India allows keeping mass assets and passing the same to their sons and daughters. Hence investors often invest their excessive earnings in many assets. The investment preferences are generally classified into two classes’ viz., Equity and Non Equity avenues. Investment refers to acquisition of some assets. It also means the conversion of money into claims on money and use of funds for productive and income earning assets. In essence, it means the use of funds for productive purposes, for securing some objectives like income, appreciation of capital or capital gains, or for further production of goods and services with the objective of securing profits. Investment activity involves the use of funds or savings for further creation of assets or acquisition of existing assets. In simple words investment is the use of money for the purpose of making more money, to gain income, increase capital or both. An investor has numerous investment options to choose from, depending on his risk profile and expectation of returns. Different investment options represent a different risk-reward trade off. Low risk investments are those that offer assured, but lower returns, while high risk investments provide the potential to earn greater returns. Hence, an investor’s risk tolerance plays a key role in choosing the most suitable investment. Banks today provide a range of investment options, including international investing, investing in commodities, stocks, bonds, precious metals and investment funds. Other options for investing include certificates of deposit, futures and investment clubs. All investment options have their inherent risk and benefits. For instance, international investing is prone to social, political, economic and currency risks, while fixed income investing is prone to interest risks. A comparison of different investment options with respect to their Performance is as shown in the following table. Table - 1 Options Returns Safety Volatility Liquidity Convenience Equity High Low High High/Low Moderate FI Bond Moderate High Moderate Moderate High Cooperate Debenture Moderate Moderate Moderate Low Low Company FD Moderate Low Low Low Moderate PPF Moderate High Low Moderate High LIC Low High Low Low Moderate Moderate High Moderate Moderate Low Real Estate High Moderate High Low Low Mutual Fund High High Moderate High High Bank Deposit Low Low Low High High

There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends.

1 . St. Agnes Centre for Post Graduate Studies & Research, Mercara Hill Road, Mangalore.

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People began opting for portfolio managers with expertise restricted in terms of place, the respondents are largely in stock markets who would invest on their behalf. Thus from Mangalore city. The research has been conducted we had wealth management services provided by many on various investors of different areas as the study tries institutions. However they proved too costly for a small to attain a holistic understanding of the opinions of the investor. These investors have found a good shelter with investors with regard to different aspects of investments the mutual funds. and investing activity. Statement of the Problem Hypothesis The market is highly volatile, the preferences of the H0: Most of the investor’s prefer non equity avenues of investors differs from one another. Investors plan their investment, due to risk factor. investments on the basis of liquidity, rate of returns, risk Sampling Technique factors etc. The various investment avenues investors This study is conducted on a sample size of 50 can invest are Bank Deposits, Corporate Debenture and respondents who were selected through random Bonds, he can also invest in the stock of companies sampling technique. where risk is high and the returns are also proportionately high. This study is an attempt to find out the major factors Statistical Tools influencing the investor’s perception towards equity and • Chi-square test non equity based investment avenues. Review of Literature Need For the Study According to S.Kevin, Investment is an activity that is India is well emerging as an important investment engaged in by people who have savings, i.e. investments destination. It’s on course to become a major economic are made from savings, or in other words people power. The country is seeing huge domestic and foreign investment their savings. But all savers are not investors. investments but current global financial scenario which Investment is an activity which is different from savings. is not very positive has left a bad taste in the mouth of Thus investment may be defined as “a commitment of investors. The capitals markets boom is slowly funds made in the exception of some positive rate of decreasing and there is a trend shift in the investments, return”. Exception of return is an essential element of people again prefer investments with greater liquidity. investment. Since the return is expected to be realized The motive for this study has been the dynamic changes in future, there is possibility that the return actually that take place in the investment circles, the markets realized is lower than the return expected to be realized. and their impact on the investors and investments and The possibility of variation in the actual return is known as a result the behavior of the investors and their as investment risk. Thus every investment involves return perceptions, understandings and also opinions about and risk different investments tools that they feel are best. By this the future prospects of individual tools also is needed According to Ravi M. Kishore, Investment decisions to be studied. are those which determine how scare resources in terms of funds available are committed to projects .The project Objectives may be as small as purchase of equipment or as big as Savings is necessary but just saving is not enough, acquisition of an entity. Investment in fixed assets investing these savings becomes even more important. requires supporting investment in working capital in the Each investor need to invest intelligently in order to form of inventory, receivable, cash etc. Investment which have enough money available for funding children’s enhances internal growth is termed as ‘internal education, buying and maintaining a house or for one’s investment’ and acquisition of entities represents own golden years. Keeping these goals in mind various ‘external investment’. The investment decision should investors choose different opportunities and tools in aim at investment in assets only when they are expected orders to attain their personal goals and during such an to earn a return greater than a minimum acceptable investment activity every investor gains experience and return which is also called as Hurdle Rate. different perceptions towards different avenues and Company analysis investment tools might be built based on these experience. Objective of this study is to understand this The purpose of company analysis is to help the investors perception. to make better decisions. The company’s earnings, profitability, operating efficiency, capital structure and Scope of the Study management have to be screened. These factors have This study primarily deals with the perceptions of the direct bearing on the stock prices and the return of investors who invest in conventional and non conventional investors. Appreciation of the stock value is a function investment avenues. Although the research is not to the performance of the company. Company with high

Special Issue November 2015 Page 36 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 product market share is able to create wealth to the Derivatives: These are financial contracts which are investors in the form of capital appreciation derived from the value of the underlying assets, such as equities, commodities and bonds, on which they are Construction of Portfolio based. Derivatives can be in the form of futures, options A portfolio is a combination of securities. The portfolio is and swaps. Derivatives are used to minimize the risk of constructed in such a manner to meet the investor’s loss resulting from fluctuations in the value of the goals and objectives. The investor should decide how underlying assets (hedging). best to reach the goals with the securities available. The investor tries to attain maximum return with minimum Commodities: The items that are traded on the risk. Towards this end he diversifies his portfolio and commodities market are typically agricultural and allocates funds among the securities. industrial commodities. These items need to be standardized and must be in a basic, raw and Evaluation unprocessed state. The trading of commodities is The portfolio has to be managed efficiently. The efficient associated with high risk and high reward. Trading in management calls for evaluation of the portfolio. This commodity futures requires specialized knowledge and process consists of portfolio appraisal and revision in-depth analysis. Appraisal Real estate: This investment involves a long-term commitment of funds and gains that are generated The return and risk performance of the security vary from through rental or lease income as well as capital time to time. The variability in return of the securities is appreciation. This includes investments into residential measured and compared. The developments in the or commercial properties. economy, industry and relevant companies from which the stocks are bought have to be appraised. The Table - 2 appraisal warns the loss and steps can be taken to avoid Sr. Golden Rules of investment Amount of Investment Decision such losses. No Growth Returns Liquidity Risk Revision 1 ↑↑ ↑ Low Good Investment It depends on the results of the appraisal. The low 2 ↔↔ ↔ Moderate Average Investment yielding securities with high risk are replaced with high 3 ↓↓ ↓ High Search for Investment yielding securities with low risk factor. To keep the return Here, ↑ = Increase in Value; ↔ = Normal or No increase in value; at a particular level necessitates the investor to revise ↓ = Decrease in value. the components of the portfolio periodically. Golden Rules of Investment Investment Avenues Data Analysis and Interpretation The various types of investment are: Table - 3 : Showing Avenues of Investment. Cash investments: These include bank savings accounts, certificates of deposit (CDs) and treasury bills. Avenues of Sample size(50) Sample size (%) These investments generally pay a low rate of interest investment and are risky options in periods of . Equity 12 24 Debt securities: This form of investment provides returns Non equity 25 50 in the form of fixed periodic payments and possible Both 13 26 capital appreciation at maturity. It is a safer and more ‘risk-free’ investment tool than equities. However, the The above chart gives a break up of avenues of returns are also generally lower than other securities. investments respondents have invested in, it is found Stocks: Buying stocks (also called equities) makes you out that majority were non equity investors, 24% invested a part-owner of the business and entitles you to a share in equity related avenues, and nearly one fourth that is of the profits generated by the company. Stocks are 26% also invested in both. This shows that a lot of people more volatile and therefore riskier than bonds. invest in non equity where as there are good number who invest in both as well but interesting fact was that Mutual funds: This is a collection of stocks and bonds there were pure equity investors also. and involves paying a professional manager to select specific securities for you. The prime advantage of this investment is that you do not have to be involved in tracking the investment. There may be bond, stock- or index-based mutual funds.

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Table - 4 : Showing the Sectors in Which the The above chart represents the amount invested in non Investor Has Invested equity avenues out of which 26% of the respondents invest less than one lakhs, 42% of the respondents invest Sectors Sample size(50) Sample size(%) from one lakhs to two lakhs,10% of the respondents invested invest from two lakhs to five lakhs and remaining 22% of Commodities 1 2 the respondents invest more than five lakhs. Unlike the Realty 8 16 equity avenues there seems to be a good division. It appears that these amounts are invested to the extent Bank F D 15 30 the investor wants safety Mutual funds 12 24 Table - 7 :Showing Annual Income Earned By PPF 5 10 Investment Postal schemes 7 14 Annual income Sample size(50) Sample size (%) Others 2 4 earned by investment 0 to 50,000 32 64 The above chart shows the sectors, in which the investors have invested in , 2% of them have invested in 50,000 to 1Lakh 11 22 Commodities, 16% of them in Realty, 30% of them in 1 lakh to 2lakhs 4 8 Bank FD, 24% of them in Mutual Funds ,10% of them in 2 lakhs and above 3 6 PPF , 14% of them in Postal Schemes and 4% of them in others . This shows that people invest in various The above chart shows the Annual income earned by sectors so as to maximize returns and to minimize risk investment. It is clear from the above chart that 64% of Table - 5 : Showing Amount Invested In Equity the respondents earn an annual income between 0 to Base Avenues. 50,000, 22% of the respondents earn between 50,000 to 1Lakh, 8% of the respondents earn between 1 lakh to Amount invested Sample size(50) Sample size (%) 2lakhs and remaining 6% of the respondents earn 2 in equity market lakhs and above. This indicates that the greater part of less than 1 lakh 23 46 the investors earned around Rs. 50000 annually 1 lakh to 2 lakhs 17 34 Table - 8 : Showing Percentage of Annual Returns Expected By The Investor 2 lakhs to 5 lakhs 6 12 More than 5 lakhs 4 8 The Percentage of Sample size(50) Sample size (%) Annual Return The above chart represents the amount invested in equity expected by the based avenues out of which 46% of the respondents investor invest less than one lakh, 34% of the respondents invest 10% to 20% 36 72 from one lakh to two lakhs,12% of the respondents invest from two lakh to five lakhs and remaining 8% of the 20% to 30% 6 12 respondents invest more than five lakhs. Here although 30% to 40% 6 12 there is a considerable amount of investment below a More than 40% 2 4 lakh and one to two lakh, it shows that investment is not to the tune of huge amount, but there can also be The above chart indicates about the percentage of annual seen good amount of investment in the higher category. returns expected by the investor in which 72% of the Table - 6 : Showing The Amount Invested In Non respondents expected annual returns of 10%-20%, 12% Equity Avenues of the respondents expected annual returns of 20%-30%, 12% of the respondents expected annual returns of 30%- Amount invested Sample size(50) Sample size (%) 40% and remaining 4% of the respondents expected in equity market annual returns of more than 40%. This shows that since less than 1 lakh 13 26 the larger portion was in non equity based avenues and mixture of both, the investors were aware of the possible 1 lakh to 2 lakhs 21 42 returns and hence expectations were within 20% 2 lakhs to 5 lakhs 5 10 More than 5 lakhs 11 22

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Table -9 : Showing Percentage Of Annual Returns Table - 12 : Showing Trading Done By the Received By The Investor Investor In Terms of Period

The Percentage of Sample size(50) Sample size (%) How often you Sample size(50) Sample size (%) Annual Return trade/invest received by the Daily 5 10 investor Weekly 8 16 10% to 20% 38 76 Monthly 19 38 20% to 30% 6 12 Annually 18 36 30% to 40% 4 8 More than 40% 2 4 The above chart indicates about how often does the The above chart reveals about the percentage of annual investor trade/invest out of which 10 % of the respondents returns received by the investor out of which 76% of the trade daily, 16% of the respondents trade weekly, 38% respondents received annual returns of 10%-20%, 12% of the respondents trade monthly and 36% of the of the respondents received annual returns of 20%-30%, respondents trade annually. 8% of the respondents received annual returns of 30%- Table - 13 : Showing the Equity Investment 40% and remaining 4% of the respondents received Avenues Preferred By an Investor annual returns of more than 40%. This indicates that a majority yield was as expected within 20% Investment avenue Sample size(50) Sample size (%) preferred by the Table - 10 : Showing Whether the Investor Is investor-equity Happy With The Returns Earned On Equity Investment And Non Equity Investment Shares and stock 15 30 Equity funds 24 48 Whether the investor is Equity Non equity happy with the returns investments investments Others 11 22 earned on his/her equity investment and non The chart reveals the equity investment preferred by an equity investment investor which shows that 30% prefer shares and stocks, Satisfied 5 20 48% prefer equity funds and 22% other equity related investments are preferred. Not satisfied 20 5 Table - 14 : Showing the Non Equity Investments This chart reveals that most of the investors are satisfied Preferred By an Investor with non equity investments compared to equity investments. Non equity avenues Sample size (50) Sample size (%) preferred by investor Table - 11 : Showing Time Spent By the Investor on Investing Process on Weekly Basis. Bank F D 21 42

Time spent by the Sample size(50) Sample size (%) Debt funds 5 10 investor on investing PPF 8 16 process on weekly basis. Postal schemes 12 24 8 hours 6 12 others 4 8 5 to 7 hours 6 12 The above chart shows the non equity investments 3 to 5 hours 6 12 preferred by an investor. 42% of the investors prefer Bank FD, 10% of the investors prefer Debt Funds, 16% of the less than 3hours 32 64 investors prefer PPF, 24% of the investors prefer Postal The above chart indicates about the time spent by the Schemes, 8% of the investors prefer other avenues. investor on investing process on weekly basis. It is clear from the above chart that 12% of the respondents spend less than 8 hours, 12% of the respondents spend 5 to 7 hours, 12% of the respondents spend 3 to 5 hours and remaining 64% of the respondents spend less than 3 hours.

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Table - 15 : Showing the Reason for Preference market very risky, Whereas in case of non equity of Investment avenues they prefer bank F D and around 12% respondents prefer postal schemes. Reasons for Sample size(50) Sample size (%) preference of • Safety, returns and time factor are the reasons for investment the preference of investment by an investor. • Risk factor/safety 11 22 Due to the risk involved in non equity based avenue banks and mutual funds are considered to be Returns 23 46 suggested routes of investment for a new investor. Easy process 2 4 Suggestions Time factor 12 24 • Create awareness about equity investments by giving others 2 4 education about the actual ways to invest effectively and the right investments for the right persons The above chart shows the reason for the preference of • Public should be made aware about the numerous investment. 22% of the investors invest because of the investment opportunities available for different people risk factor/ safety, 46% of the investors invest because to invest their money based on the risk of the returns they get, 4% of the investors feel it’s easy, • 24% of the investors invest due to time factors, 4% of Better customer services should be provided during the investors invest due to some other factors. the investment process so that the customers have a good experience during investment. It should be Findings, Suggestions and Conclusion made simple and easy for everyone to understand Findings • A good advisory service is the key to the development • In the study, majority of investors are male and of the market. The different intermediaries should majority of respondents are between the age group provide correct advice based on the need of the of 18-35 years. investor and try to see that he is benefited as a result • Majority of respondents are employed and self of which greater confidence is built employees people which show that employed people • The procedure of investment should be made even invest their salary in various avenues. easier. Research should be conducted to see to it • The study reveals that most of the respondents are that problems and hassles during investments are educated found out and it is rectified • The annual income of majority of respondents lies Conclusion between Rs. 50000-200000 Financial investment is the allocation of funds to assets • The investors invest their money with a purpose of and securities after considering their return and risk capital growth. Some of them also consider income factors. Investor plans for a long horizon after considering and safety as the reasons behind their investments. the fundamental factors and assumes moderate risk. • Most of the investors prefer non equity avenues of The main objective of rational investors are maximizing investment. And around 36% of investors invest 2 returns and minimizing risk. Safety of the principal, lakhs to 5 lakhs in these avenues as per the study. tradability and liquidity are his subsidiary objectives. Equity shares have the right to receive dividend and • The percentage of annual returns expected by the residual claim, but these are highly risky compared to majority of the investors is between 10-20% and the non equity investments. financially actual returns earned by the investors are around 50000. The present study shows that the people invest more on non equity based investments compared to equity • Most of investors are not satisfied with the returns investments due to risk safety and time factor. earned on equity investor. But 46% of respondents are happy with the returns earned on non equity Bibliography investments. Articles: • An investor spends less than 3 hours on investing • Black, modelling consumer choice of distribution process on weekly basis and feels that internet and channel, an illustration from financial services, TV is the best source of information to the investor to international journal OF bank marketing, invest in different securities. VOL.20.NO4, 2002, PP 161-173. • Majority of investors prefer are equity funds when • Manish mirral and R. K. VYAS, Demographic and compared to shares and stock under equity based investment choice among Indian investors, review of investment avenues as 34% of investors find equity business and technology research, vol.3.no1, 2007

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• Menu verma, wealth management and behavioural Webliography finance personality on investment choice among www.thefreedictionary.com/agrarian Indian investors, the 1up journal of behavioural shodhganga.inflibnet.ac.in/bitstream finance,2008,pg-20 www.care.ac.in

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A PREDICTION MODEL FOR ORGANIZATIONAL ROLE STRESS BASED ON BACK PROPAGATION NEURAL NETWORK

Deepa Mohan1 Sudarsan N2

Abstract Organizations want to maximize the efficiency by minimizing stress, as increased levels of stress may have significant implications on organizational performance and will lead to low commitment, high absenteeism and turnover rates, and also overall wellbeing of employees. The study undertakes the examination of organizational role stress among employees working in IT industry of South India. This study investigated the impact of emotional intelligence, organizational commitment and attitude towards change on organizational role stress using artificial neural network on Mat Lab software. Results of the analysis illustrated that the model is a good predictor model. Key words: emotional intelligence, organizational commitment, attitude towards change, organizational role stress, artificial neural network

Introduction According to Selye Hans (1956) work stress manifesting India with its strategic positioning has evolved into a in the form of Organizational Role Stress (ORS) major destination for IT based organizations and has explained as the conflict and tension due to the roles been recognized to be among the top ten high stress being enacted by a person at any given point of time. workplaces. Estimating the level of role stress among Pareek (2010) had classified organizational role stressors employees in such industries undoubtedly is not only in to ten different classes such as important in alleviating factors influencing stress but also • Inter-role distance (IRD): Conflict between helpful in devising coping strategies. This paper is organizational and non-organizational roles. devoted to, presenting the details of investigation carried • Role stagnation (RS): The feeling of being stuck in out towards identifying major factors that can be the same role. important in estimation of role stress levels among • Role expectation conflict (REC): Conflicting employees particularly engaged in the IT sector of South expectations and demands between different role India using back propagation neural network. senders. The method of data collection and analysis of data set • Role erosion (RE): The feeling that functions that using statistical methods were portrayed should belong to the respondent’s role are being comprehensively in many researches. Among those transformed/performed or shared by others. statistical methods, multiple regression analysis is one • Role overload (RO): The feeling that more is expected of the most widely used methods for modeling. However, from the role than the respondent can cope with. the modeling method using a multiple regression analysis has a significant flaw as it ignores RMSEA value • Role isolation (RI): Lack of linkages between the of the model. To offset this deficiency, artificial neural respondent’s role and that of other roles in the networks (ANNs) can be used. This study is devoted to organization. present the details of artificial neural network model to • Personal inadequacy (PI): Inadequate knowledge, estimate Organizational Role Stress (ORS) among IT skills, or preparation for a respondent to be effective sector employees of South India. The ANN developed in a particular role. employs back propagation approach with Emotional • Self-role distance (SRD): Conflict between the Intelligence (EI), Organizational Commitment (OC) and respondent’s values/self-concepts and the Attitude towards Change (ATOC) as the input nodes. requirements of his or her organizational role. Review of Literature • Role ambiguity (RA): Lack of clarity about others’ This study mainly focuses on the extent of stress expectations of the respondent’s role, or lack of experienced by the employees particularly in the IT sector feedback on how others perceive the respondent’s owing to the unique work environment prevailing. performance.

1 . Ph. D Scholar, Department of Mechanical Eng, National Institute of Technology Calicut, Kerala. 2 . Professor, School of Management Studies, National Institute of Technology Calicut, Kerala.

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• Resource inadequacy (RIn): Non availability of al. (1998) comprising 33 items classified into four resources needed for effective role performance. dimensions namely According to Schutte (1998), EI is defined as the “ability i) Perception of emotion (P0FE) evaluated by 10 items; to adaptively recognize emotion, express emotion, ii) Managing others emotions (MOTE) by 8 items, regulate emotion and harness emotions”. EI guide us to iii) Managing own emotions (MOWE) by 9 items and respond appropriately to different stressors and is one of the essential factors. Rahim (2010) assessed the iv) Utilization of emotion (UOFE) by 6 items, each relationship of Stress and Emotional Intelligence assessable with a five-point liker-type scale. competencies among the employees of Pakistan Banks The organizational role stress (ORS) scale, which was who work under stressful conditions. The results showed developed and standardized by Pareek (2010) to measure that the EI competencies have positive and strong impact the role stress, had been used in this study. The ORS on stress and identified more than 75% employees of instrument comprised of 50 items to measure 10 different banking sector experienced stress. types of role stressors (5 statements for each role Porter et al. (1976) defined Organizational Commitment stressor) assessable on a five point liker scale. (OC) as the relative strength of an individual’s Instrument developed by Allen and Meyer (1990) with 18 identification and involvement in a particular organization. items classified in to three dimensions, namely: i) Affective commitment refers to employees’ emotional i) Affective commitment (AC); attachment, identification with, and involvement in the ii) Continuance commitment (CC); and organization. Employees with a strong affective iii) Normative commitment (NC) assessable with five commitment stay with the organization because they point liker scale for measurement of OC was want to. employed in this study. ii) Continuance commitment refers to employees’ Socio-demographical characteristics of the employees assessment of whether the costs of leaving the were categorized as personal attributes, comprising age, organization are greater than the costs of staying. gender, family status, number of children, educational Employees who perceive that the costs of leaving qualification, native place, number of family members the organization are greater than the costs of staying and earning members and annual income; job attributes remain because they need to. that includes number of days leaves availed, total iii) Normative commitment refers to employees’ feelings experience, job overtime, salary satisfaction, challenging of obligation to the organization. Employees with high nature of work, recognition and appreciation for employee levels of normative commitment stay with the contribution and effective skill application and organization because they feel they ought to. environmental attributes such as experiencing Mohamadkhani and Lalardi (2012) established explicit organizational change and attitude to change. Five items relationship between emotional intelligence and that measure attitudes to change were chosen from the organizational commitment in his study of the hotel instrument Attitude to Change Questionnaire (ACQ) staff in 5-Star hotels of Tehran, Iran. developed by Vakola et al. (2003). Employee details on There is evidence in the change management literature the socio-demographical characteristics had been identifying the role of organizational commitment in a compiled through additional 23 items as indicated above. change context. Cameron (2010) determined the levels Thus the instrument developed for the study comprised of employee commitment and employee perceptions of a total of 129 items essentially derived from the well the planned organizational changes. The research was established instruments reported in literature. conducted in a large telecommunication organization in Data Collection and Analysis with over 20,000 employees The results collected for this research indicated positive correlations The population chosen for the study had been drawn between affective commitment and employee attitudes from among individuals employed in IT sector, \ working and perceptions of change. The results also suggested in Bangalore located in the southernmost part of India. that higher levels of affective commitment are associated Study sample had been chosen with random sampling with more positive perceptions of change. technique. The study conducted through personal interview yielded 158 duly completed questionnaires from Questionnaire Design a total of 180 distributed resulting in a response rate of The questionnaire for the investigation was developed 87.78%. The minimum sample size needed for this study using instruments established through previous estimated based on Bill Godden (2004), recommends researches. The EI level was measured with The 383 for estimated population size of 60,000 having 50% Emotional Intelligence Scale developed by Schutte et response distribution with 5% margin of error and at 95% confidence level. The estimate was subsequently verified

Special Issue November 2015 Page 43 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 through software developed by Raosoft. Inc. (2004). Data human cognitive system and the neurological functions collected in this investigation was analyzed using of the brain. Numerous studies applied ANNs for Statistical Package for Social Sciences (SPSS). The prediction and classification research in the sciences high Chronbach’s alpha values indicate a high internal and social sciences. Garver (2002) noted that ANNs reliability of the questionnaire developed and utilised in overcome the limitations in conventional statistical the study. Step wise regression was employed with applications. components of EI & OC, attitude towards change and The artificial neural network (ANN) simulates the socio-demographical variables as independent variables important operation features of human nervous system and ORS being the dependant variable to establish model to determine solutions by using information gained from that can be used to estimate stress levels among historic data (Pai et al., 2013). To operate like a human individuals in IT sector ( Deepa & Sudarsan, 2013). To brain, ANN uses many computational units called offset the deficiency of regression model, artificial neural artificial neurons that are interrelated by various weight networks (ANNs) was used. The back propagation neural functions. Although each neuron can only perform a network of ANN was employed to predict Organizational simple computation, an ANN can perform complicated Role Stress (ORS) among IT sector employees of South calculations based on the multiple level structure of a India. network of connected neurons. An ANN is composed mainly of three independent layers: input, hidden, and Artificial Neural Network output layers as shown in Figure 1. Each layer contains The artificial neural network (ANN) as an alternative many operation neurons. Input neurons accept the input approach to linear regression has gained popularity in values that are fed to the ANN, meanwhile the different fields. Many studies in the social sciences used computational values in the output layer are determined ordinal scales to measure a respondent’s attitude by by the output neurons. The hidden layers act as asking a question with a range of responses. According interfaces to relate input and output layers. Each neuron to Cohen et al. (2007), assuming the difference between is linked to every neuron in adjacent layers by a weight an attitude of ‘strongly disagree’ and ‘disagree’ is being function. Each neuron sums all of the values from equal to the difference between other consecutive levels previous inputs converts the sum to an output value. To of response on the likert-type scale cannot be legitimate. a prediction problem, a supervised learning algorithm is This study described the use of the artificial neural often utilized to train ANN. The back propagation network (ANN) model, particularly an ANN model with algorithm (BPNN) is commonly selected to direct ANN. back-propagation algorithm to analyse ordinal data, a The steepest gradient descent method is commonly used more appropriate level of measurement for ORS. to minimize the errors between the BPNN outputs and Artificial neural networks (ANNs) are simplified models observations. The calculation of BPNN was carried out of the central nervous system and are analytic using Mat Lab. (Fig. 1) techniques modelled on the learning processes of the

Fig. 1 : Artificial neural network

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Back-propagation neural network Parameters Used In the Determination of BPNN Artificial neural networks can be classified into several The input parameters are the four dimensions of categories based on supervised and unsupervised Emotional Intelligence, three components of learning methods and feed-forward and feedback recall organizational commitment, five items of attitude towards architectures. A Back-propagation neural network, BPNN change and output variable is organizational role stress. is a neural network that uses a supervised learning These data were imported to the Mat Lab to examine method and feed-forward architecture. A BPNN is one of the model using BPNN algorithm. the most frequently utilized neural network techniques Determination of BPNN for classification and prediction (Wu et al., 2006) and is considered as advanced multiple regression analysis The weighted sum of the input components is calculated that can accommodate complex and non-linear data with equation relationships (Jost, 1993). The learning algorithm in a f (X) = X1W1 + X2W2 + ……. + XnWn. BPNN differs from traditional feed-forward neural The output is calculated with a sigmoid function as follows: networks: first, a BPNN uses an activation function for OUT = 1 / 1 + e -f (X) the hidden unit and not the input value; and, second, the gradient of the activation function is contained (Law, The training of the network is accomplished by adjusting 2000). The output of a BPNN is compared with the target the weights and is carried out through a large number of output and an error is calculated for each training training sets and training cycles (epochs). The goal of iteration. This error is then back propagated to the neural the learning procedure is to find the optimal set of network and utilized to adjust the weights, thereby weights. The output of the network is compared with a minimizing the mean squared error between the desired response to produce an error. The performance network’s prediction output and the target output. is measured in terms of a desired signal and the criterion Consequently, the BPNN model yields predictive output for convergence. that is similar to the target output. The appropriate BPNN model was designed to predict Garver (2002) noted that ANNs overcome the limitations ORS among the employees in IT sector. The BPNN model of conventional statistical models that are typically visible was comprised of three layers: input, hidden, and output in customer satisfaction research, and that ANNs are layers. There are twelve input values and one target value well-suited to evaluating the relative importance of connected by twelve hidden neurons. The network was customer satisfaction attributes. It was concluded that trained to fit the inputs and targets using Levenberg the capability of ANNs in modeling non-linear interactions Marquardt back propagation method as shown in Figure improve model prediction performance and variance 2. The sample size chosen for the study was 255, out of interpretation. which 80% (204) was taken for training, 10% (26) for testing and 10% (26) for validation.

Fig. 2 : Neural network of the study

The training epochs were set at 1000. BPNN compute the error vectors backward, starting from the final layer going through the network backward and finds out a function that best maps a set of inputs to its correct output.

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In order to evaluate the prediction accuracy of BPNN, mean squared error (MSE), and root mean squared error (RMSE) have been adopted. Root mean squared error is the square root of average squared difference between outputs and targets. Lower values are better and zero means no error. The RMSE value of the ANN model was found to be 0.06. The regression plots are given in Figure 3; the regression, R, values measure the correlation between outputs and targets. An R-value of one means a close relationship and zero means a random relationship.

Fig. 3 : Regression plots of ORS from BPNN

From the regression plots, the R-value is 0.93 and RMSE is 0.06. The observed and predicted values of ORS for a sample size of 255 from BPNN are given in Figure 4. The results from BPNN revealed that the model is a good predictor model, as the observed and predicted values agree with each other. Consequently, the ORS model developed for this study can be used as a predictor model. (Fig. 4) Conclusions The study examined the applicability of modeling the dependence of ORS upon organizational parameters such as EI, OC, ATOC and demographical characteristics through BPNN. This is a pioneering attempt to model with ANN, not only towards understanding the intricate relationship between the variables, but also in demonstrating a more accurate interdependence model. The reliability and validity of the data set are verified through confirmatory factor analysis. Results obtained through BPNN illustrated the model as a good predictor model and the least influence of socio-demographical variables on ORS.

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250

200

ORS 150

100

50 Sample size Observed values

0 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280

Fig. 4 : Predicted and observed values for ORS

References • Cohen, L., Manion, L., Morrison, K., & Morrison, K. (2007). Research methods in education. 6th edition, New York: Routledge. • Pareek, U., & Purohit, S. (2010). Training instrument in HRD and OD. 3rd edition, New Delhi: Tata McGraw-Hill. • Selye, H. (1956). The stress of life. New York: McGraw-Hill. • Allen, N. J., & Meyer, J. P. (1990). ‘The Measurement and Antecedents of Affective, Continuance and Normative Commitment to the Organization’. Journal of Occupational Psychology, 63. • Cameron, M. V. (2010). ‘The Relationship between Employee Attitudes Towards Planned Organisational Change and Organisational Commitment: An Investigation of a Selected Case within the South African Telecommunications Industry’, Dissertation, Cape Peninsula University of Technology, South Africa. • Cohen, A. (1992). ‘Antecedents of organisational commitment across occupational groups: A Meta-Analysis’. Journal of Organisational Behaviour, 13.

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• Cronbach, L. J. (1951), ‘Coefficient Alpha and the • Pai, T.Y., Hanaki, K., Su, H.C., Yu, L.F. ( 2013). ‘A internal structure of tests’. Psychometrika, 16. 24–h forecast of oxidant concentration in Tokyo using • Deepa, M. & Sudarsan, N. (2013). ‘Estimating neural network and fuzzy learning approach’. CLEAN– Organisational Role Stress among Employees in IT Soil Air Water, 41. Sector: An Indian Experience’. International Journal • Porter, L. W., William J. C., & Frank J. S. (1976). of Human Resource Management and Research, 3. ‘Organizational commitment and managerial turnover: • Garver, M. S. (2002). ‘Using Data for customer A longitudinal study’. Organizational Behaviour and satisfaction research’. Marketing Research, 14. Human performance, 15. • Jost, A. (1993). ‘Neural networks: A logical • Rahim,S.H. (2010). ‘Emotional Intelligence and progression in credit and marketing decision system’. Stress: An Analytical Study of Pakistan Banks’. Credit World, 81. International Journal of Trade, Economics and Finance, 1. • Law, R. (2000). ‘Back-propagation learning in improving the accuracy of neural network-based • Schutte, N. S., Malouff, J. M., Hall, L. E., Haggerty, tourism demand forecasting’. Tourism Management, D. J., Cooper, J., Golden, C. J. & Dorhheim, L. 21. (1998). ‘Development and validation of a measure of emotional intelligence’. Personality and Individual • Mohamadkhani, K., & Lalardi, N. M. (2012). Differences. ‘Emotional Intelligence and Organizational Commitment between the Hotel Staff in Tehran, Iran’. American Journal of Business and Management, 1.

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CONSUMER BEHAVIOUR TOWARDS ORGANIC VEGETABLES

Divya Vijayan1 Dr.K.N.Ushadevi2

Abstract As vegetables constitute a major portion of food consumption of people, changes has undergone in the nature, type and quality of vegetables that is to be consumed by them. Now a day’s vegetables are used not only to add their food habit but to provide nutrient and prevent nutritious related diseases and improves physical and mental well being of consumers. So this Paper aimed to study the consumer behaviour towards organic vegetables. The sample of 60 consumers was selected and survey was conducted by using pre structured questionnaire. Index method was mainly used for statistical purpose. The study found that Attitude and satisfaction level of consumers towards organic vegetables shows significant difference among consumers. Consumers overall attitude towards organic vegetables were also not favourable due to its high price and non availability. However they agree with the health aspects, quality, nutrient value and environmental friendly nature of the organic vegetables. Key words:

Introduction which protect them from health related issues is very The US Department of Agriculture defines organic farming important. thus “Organic farming is a production system which Statement of Problem avoids or largely excludes the use of synthetically “The current farming systems lay emphasis on high compounded fertilisers, pesticides, growth regulators and yields which are achieved by intensive use of fertilizers, livestock feed additions. pesticides and other off-farm inputs. Alternate farming To the maximum extent feasible, organic farming systems range from systems which follow only slightly systems rely on crop rotations, crop residues, animal reduced use of these inputs through the better use of manures, legumes, green manures, off- farm organic soil tests, cultivation of crops only on soils best suited wastes and aspects of biological pest control to maintain to them, integrated use of pest management, etc,. to soil productivity and tilth, to supply plant nutrients and those that seek to minimize their use through appropriate to control insects, weeds and other pests” (Lampkin, crop rotations, integration of livestock with crop 1990). husbandry, mechanical or biological control of weeds and less costly buildings and equipment. So for The term consumer behavior can be defined as the agriculture to be sustainable, it should include a spectrum behavior that consumers display in searching for of farming systems ranging from organic systems that purchasing, using, evaluating and disposing of product greatly reduce or eliminate use of chemical inputs to and services that they expect will satisfy their needs. those involving the prudent use of antibiotics to control One of the objectives of the present study is to examine specific pests and diseases’ (Kerala Land Use Board, the consumer behavior towards organic vegetables. 1997) In the past 10-15 years, many farmers in Kerala Recent trends in final food demand show that it plays other than those who continued the traditional methods, an important role in the maintenance of health on psycho have taken up organic farming quite earnestly. Those physical well being and prevention of certain diseases. who reverted from modern intensive agriculture to organic As vegetables constitute a major portion of food farming had to face many immediate problems. Sudden consumption of people, changes has undergone in the withdrawal of the external inputs led to steep fall in yield. nature, type and quality of vegetables that is to be The high yielding varieties of seeds had to be replaced consumed by them. Now a day’s vegetables are used by indigenous ones. The gap of 30 - 40 years created a not only to add their food habit but to provide nutrient vacuum in the knowledge of traditional agricultural and prevent nutritious related diseases and improves practices. The prevalence of modern agriculture in the physical and mental well being of consumers. In the majority of the cultivable areas makes it difficult to context of changing behavior of consumers towards maintain organic purity in the soil and atmosphere. vegetables to study their behavior towards organic Moreover, the organic farmers are scattered all over the vegetables which are high nutrient, pesticide free and

1 . Research Scholar Department of Rural Marketing Management, College Of Co-operation Banking and Management 2 . Associate professor, Department of Rural Marketing Management, College Of Co-operation Banking and Management

Special Issue November 2015 Page 49 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 state with a few pursuing it seriously. While it has been 1. Socio-economic profile of consumers proven beyond doubt that the organically grown food is 2. Attributes that influence purchase of vegetables much better in quality, it remains to be established that, 3. Consumer attitude in terms of total productivity and economic viability, 4. Level of consumer satisfaction organic farming can compare with modern intensive agriculture. Socio-Economic profile of consumers Organic farming in Kerala is mostly in traditional stage, Study revealed that majority of the respondents (60 but there is a distinct movement among the farmers as percent) was male. Most of the respondents (30 percent) well agriculture experts and scientists in favors of were in the age group of 50-60 years. Regarding the educational level of respondents most of the respondents ecological farming. Advocates of less chemical more th natural are on the increase. There is considerable were qualified up to 12 standard. 96.67 percent consumer awareness about the dangers of pesticide respondents were living in nuclear family. The most of poisoning and hybrid crops and fertilizers residues in the respondents (46.67) were private employees. The food. Farmers are finding it profitable to return to majority of the respondents (71.67 percent) were earning traditional farming. income between Rs 20000-30000 monthly. Organic farming has been systematically followed on a Attributes that influence the purchase of vegetables large scale in the developed countries. Unfortunately in Among the attributes were asked all the respondents India though there is a potential for adopting organic irrespective of regions were opinioned that price and farming system it is not taking place on a large scale hygiene (100 percent) are the important attributes which due to various factors. There are consumers who are they are looking for while purchasing the vegetables. eager to pay premium price for organically produced This shows that consumers are both price conscious commodities even in India. If India taps the potential in and health conscious. the area of organically produced vegetables, which will Consumers are looking into the freshness (88.33 percent) bring huge export earnings. But the farmers should more and nutrient value of vegetables. Chemical and pesticide focus on organic vegetable farming and to produce free vegetables are also an attribute consumers are certified organic vegetable. looking for. It can infer from the above analysis that So these situations are main hindrance to the organic enough potential for organically cultivated vegetables. farming and a healthy world. So the attitude of consumers is helped to analyze the present situation of organic Consumer attitude towards organic vegetables vegetable farming. Consumer attitude is a composite of a consumer’s beliefs, feelings and behavioral intentions towards some Objectives of the Study object. Understanding consumer attitude towards The important objective of the study was organic vegetable can help the producers to take To examine the consumer’s behaviour towards organic decisions on organic vegetable farming and even organic vegetables farmer can determine the market potential of their Methodology vegetables. For this purpose different statements related Selection of consumers to organic vegetables were selected and data collected on 5 point scale of Likert summated rating. An attitude Twenty consumers from each selected blocks like index was constructed by giving weight ages of 5 points Pazhayanoor, Elevenchery and Muvattupuzha of Thrissur, from 5 to 1 (highly favorable and highly unfavorable). For Palakkad and Ernakulum district respectively through the purpose of interpretation index score was rated as simple random sampling. Thus the total sample of follows. consumers confined to 60. Less than 30- Highly unfavorable (HUF) Data collection 30-50 - Moderately Unfavorable (MUF) Primary data were collected through pre-tested structured interview schedule from the consumers. Liker 50-70 - Indifferent (I) Scale of summated rating was used to analyse the 70-90 - Moderately Favorable (MF) behaviour of consumers towards organic vegetables. 90 and above - Highly favorable (HF) Data Analysis Consumer attitude about the organic vegetables is given For the purpose of analysis of the objective the following in the table 5.1 variables were selected.

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Table - 1 : Consumer attitude towards organic vegetables

Source: Primary data

(HF-Highly Favorable. MF- Moderately Favorable, I-Indifferent, MUF-Moderately Unfavorable, HF- Highly Unfavorable) All the respondents highly favored that organic vegetables are good quality vegetables. They opined that it is more nutritious and chemical free. Consumers have moderately favorable attitude towards shelf life of organic vegetables, nutrient value, environmental friendliness and chemical free nature of the organic vegetables. However, they were having an indifferent attitude for affordability and availability of organic vegetables. They were moderately unflavored towards the source of information of organic vegetables. They opined that information regarding organic vegetable is not adequate. Consumers showed highly unfavorable attitude towards the price of organic vegetables. They opined that price of organic vegetables are more than inorganic vegetables and it is not affordable for common men.

Table - 2 : Level of consumer satisfaction towards organic vegetables

Thrissur Palakkad Ernakulum Total (n=60) Rating of index Statements Score Index Score Index Score Index Score Index Price 40 40 56 56 52 52 148 49.3 DS Taste 80 80 80 80 80 80 240 80 MS Nutrient value 80 80 80 80 80 80 240 80 MS Freshness 70 70 80 80 66 66 216 72 MS Shelf life 100 100 80 80 80 80 260 86.67 MS Availability of vegetables 34 34 60 60 46 46 140 46.67 MDS Marketing channels 40 40 56 56 40 40 136 45.33 MDS

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Eco -friendliness 80 80 64 64 60 60 210 70 MS Hygiene 80 80 74 74 48 48 202 67.33 MS Source of information 76 76 66 66 68 68 210 70 MS

Authenticity of organic nature 44 44 56 56 58 58 158 52.67 R

It gives value for money 100 100 80 80 80 80 260 86.67 MS

Composite index 844 70.33 832 69.33 764 63.67 2440 67.78 R

Source: Primary data

(HS-Highly Satisfied, MS-Moderately Satisfied, R-Resigned, MDS-Moderately Dissatisfied, HDS-Highly Dissatisfied) Table 2 reveals that consumers were not highly satisfied with any of the feature of the organic vegetables and they were moderately satisfied with taste, nutrient value, freshness, shelf life and that organic vegetable gives value for money. Organic vegetables are tasty vegetables and it contains nutrient value and it is fresh vegetable. Shelf life of the organic vegetables is more when compared to inorganic vegetables. Source of information and eco friendliness are also moderately satisfied by the consumers. Consumers are resigned to hygiene and authenticity of organic nature of vegetables. Consumers were moderately dissatisfied with price, availability and marketing channels of the vegetables. Conclusion It could be concluded that consumer behavior towards organic vegetables shows a preference for consuming organic vegetables. Consumers are aware about the advantages of organic vegetables and adverse effects of inorganic vegetables. They prefer organic vegetables as they are health conscious but the high price of organic vegetables is discouraging them from the purchase of organic vegetables. Attitude and satisfaction level of consumers towards organic vegetables shows significant difference among consumers. Strategies for marketing the organic vegetables have to be formulated with exclusive outlets for organically grown crops so as to increase their trust in the labeled organic vegetables.

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A STUDY OF DEMOGRAPHIC VARIABLES AND THEIR IMPACT ON WORK LIFE BALANCE PRACTICES

Dolan Champa Banerjee1

Abstract “The key is not to prioritize what’s on your schedule, but to schedule your priorities” said by Stephen Covey. Women have made vast improvements in the past few decades and are still proving themselves by holding respectable positions in the society. Scheduling priorities is a very tough job for working women because they have to balance both sides of the coin with ultimate care. Here the objectives of this study are 1) to focus on various demographic variables and 2) to focus on various challenges women face when balancing their work and life 3) impact of demographic variables on work life balance practices. Balance is not something one find but it is something one can create so that wheels of life roll and move properly without any difficulties. Recently we find a significant increase in the number of female professors in different colleges. A test study is conducted on women professor of a particular college to find the above mentioned objectives. The sample size may be inadequate but sufficient to establish trends of the balancing since the plight of the working women, their struggles and achievements are not significantly different in different regions. Some significant facts have been observed from the study. Demographical factors like Age, Educational achievement, Designation, Income, Number of Dependents, Marital Status and Total number of years of experience are highlighted to know their impact on the Work Life Balance Practices (WLBP). Key words: Demographic factors, Work life practices, Women employees

Introduction varies from women to women. Both external and internal “The key is not to prioritize what’s on your schedule, environmental factors are responsible for Work Life but to schedule your priorities” said by Stephen Covey Balance Practices (WLBP). For working women in joint an American educator, author, businessman, and family balancing practices would vary from working keynote speaker. women in a nuclear family. The spouse of the working women also is a factor which influence work life balance Demography is the statistical study of populations. In practices and so on. On the other hand, different work this paper the study of population is only restricted to culture such as too much work load, dominating boss women faculties from two engineering colleges based in etc. also leads to different types of WLBP. Mangalore. Here I will try to analyze the respondent by their age, religion, highest qualification, designation, Literature Review income, and personal status, number of years of DiNatale & Boraas (2002) in their study focuses on 25 experience, total number of kids and total number of to 34 year old women are more likely than women of family members. other ages to opt for flexibility in their jobs. This is possibly Women in India have made vast improvements in the attributed to the responsibilities associated with past few decades and are still proving themselves by dependant care in this age group as women need time holding respectable positions in the society. Scheduling for the young ones at home. Though child care facilities priorities is a very tough job for working women because are available, women still depend on friends and family they have to balance both sides of the coin with ultimate rather than paid-help to take care of their kids. care. Balance is not something one find but it is Lavanya L, Dr. N. Thangavel in their study brought out something one can create so that wheels of life roll and that flexi working should be made available in all move properly without any difficulties. organizations as a compulsory policy, to facilitate women Work life balance prevails in all categories of people right employees to take care of their personal responsibility from age group of 8 to 80 irrespective of men and women. and also, enhance their professional life. The policies WLBP varies from individual to individuals and it also such as these, if made mandatory would benefit the

1 . St. Agnes College (Autonomous)

Special Issue November 2015 Page 53 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 employees at large and help in the retention of women Whether Work Life Practices Differs With Age? employees. Many IT companies have pioneered innovative Women in different age group deals with work life balance policies with the recent being Accenture’s leave pooling differently. Before marriages the perception of the women policy. The other companies should work out on the are different again after marriage the insight is different model feasible for them and drive their company towards and of course after kids the acuity of women changes engaged workforce, which, in turn would create a immensely. Here we have seen different phases in a successful organization. women’s life. All these phases are well associated with Objectives the term called Work Life balance. 1) To find out whether work life balance practices differ DiNatale & Boraas (2002) analyzed that 25 to 34 year with age. old women are more likely than women of other ages to 2) To focus on various challenges women face when opt for flexibility in their jobs. They also explained that balancing their work and life. this is possibly attributed to the responsibilities associated with dependent care in this age group as 3) To focus on impact of demographic variables on work women need time for the young ones at home. life balance practices. With this explanation two assumptions can be drawn Methodology i.e. in one hand married women in this prescribed age To meet the objectives of this study, a questionnaire group have to manage their kids and on the other hand was prepared and was passed on to the respondent un-married women in the same age group want flexibility (women professor) for their valuable response in two in their job because they are committed to their parents engineering colleges in Mangalore to find out the trend or relatives. In a nutshell we can say that women in this of the above mentioned objectives. The sample size may age group are more committed and are more responsible be inadequate but sufficient to establish trends of the for their respective doings and hence they opt for balancing since the plight of the working women, their flexibility. Hence if the employees are not happy with struggles and achievements are not significantly different flexibility in their present job they quit and search for in different regions. Some significant facts have been different working environment where flexibility persists. observed from the study. A survey reveals in TOI that 50% of the total respondent This research paper is also based on secondary data (male and female) in India mentioned that they have for finalization of views and opinions which has been changed their jobs in the last six month from March to sourced from some printed literature, journals, published August 2015 and this trend is really high within the age documents etc. group of 25-34 years. Almost 64% of the survey respondents who fell within this age group mentioned Concept of Demography the same, followed by 49% from 18-24 years age group. Demography is the statistical study of populations. He also focused that “child care facilities are available; Society comprise of both female and male sects. Years women still depend on friends and family rather than ago male were the only bread earners of the family and paid-help to take care of their kids”. But today’s after 13 female were more of a home- maker, where they used to years the scenario have changed. Most of the household look after their homes as well as their children. Today are nuclear families. They have to manage everything the situation is totally different. Women in India now by themselves. Parents and in-laws have other participate fully in areas such as education, sports, commitments towards their other kids, friends, society politics, media, art, culture, service sectors, science, at large etc. and hence they sometimes come, stay technology and what not, along with managing their and go. In this type of situation couples think and house hold work. Recently we found a significant increase proceeds towards crèche or keeping children with maids. in the number of female professors in different colleges Number of crèche in each locality is increasing day by (arts, science, commerce and also technical and day. Hence women keeping their children in crèche do engineering streams). Here I am focusing on engineering go with different work life balance practices rather than colleges’ female professor to analyze my title. who keep their children at homes. In this study the demographical factors like age, A survey reveals that women with young children at home educational achievement; designation, income, marital are most likely to report high levels of negative spillover, status and total number of years of experience both in contrast to mothers of older children because working corporate as well as academic, total number of kids and mommies are always around them and try to come out total number of family members are highlighted to know of their petty problems each hour. Mothers of older their impact on the Work Life Balance Practices children are little free as compared to mothers of young (WLBP). ones. Here in each situation the work life balance

Special Issue November 2015 Page 54 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 practices are different and the concept also differs with • Managing house hold errands (chores) age. • Managing guests Working Women Faculties And Their Balancing Act • Managing finances etc. Recently we found a significant increase in the number Apart from all these, physical health is the other of female professors in different colleges. A survey was challenge which is very important and has to be nurtured conducted on women professor in two different gingerly so that harmonizing act of work and life can be engineering colleges to find the above mentioned done. Women come up with many roles from home objectives. The sample size may be inadequate but makers to the supporting their families monetarily. In sufficient to establish trends of the balancing since the doing so, many times they neglect their health which plight of the working women, their struggles and becomes a hindrance for both their professional and achievements are not significantly different in different personal life. Now-days we hear a lot of problems like regions. Some significant facts have been observed from anemia, osteoporosis, heart problem this all arise the study. because of negligence. Hence if it is dealt cautiously then working women faculties can balance their Both men and women have to balance their work and professional lives with their family, career, health and family and sometimes crossover aspect comes up. relatives and friends. Professor Mina Westman (2009) in an interview with Paula Brough and Thomas Kalliath (guest editors), Sometimes while balancing, things get overlapped and clarifies the nature of two related constructs: Work-life many things we have to do in odd times. In a survey balance and crossover. Work-life balance is the dealt by TOI shows that 69% of the respondents (both perception that work and non-work activities are male and female) sometimes deal with their private compatible and promote growth in accordance with an matters during working hours but male respondents’ individual’s current life priorities. Crossover focuses on trends are little higher (70%) than the female respondents how stress experienced by the individual influences strain (67%). experienced by the individual’s spouse or team member. Data Collection and Analysis In this expert commentary, Professor Westman discusses A sample size of 31 working women faculties were the philosophical underpinnings of work-life balance, the collected from Sridevi Institute of Technology, Kenjar and significance of crossover of emotions and experiences Karavali Institute of Technology, Neermarga in Mangalore. for organizations and individuals, current advances in Both the colleges have different engineering the field and sets out the new directions for this research. specialization like Computer Science and Engineering, Challenges are part and parcel in everybody’s life. It is Mechanical Engineering, Information Science and very much pervasive in nature. But the intensity of Engineering, Electronics and Communication challenges varies from person to person and from Engineering, Civil Engineering, M- Tech Programs etc. situation to situation. Working women too face various Both the colleges are affiliated to VTU Belgaum and types of challenges as they have to deal with both their recognized by AICTE New Delhi. family life and professional work gingerly. In the present 1. A structured questionnaire was prepared and given scenario demographics are changing in terms of families to faculties who were my respondents in this (joint families including parents, nuclear families with research paper. Name of the respondent which was kids, nuclear families without kids), in terms of work an optional criteria. place culture, in terms of social activities, in terms of finances i.e. double income group. Hence by observation 2. After the survey it was found that the trend in the various challenges faced by working women faculties engineering colleges today is to hire faculties within in engineering colleges are as follows. the age group of 24 to 30. Out of 31 faculties, 90.32% of women faculties were within the age limit of 30, At workplace and 9.68% of women were in the age limit between • Dealing with the student 31 years to 40 years. • Dealing with superiors 3. Out of 31 working women faculties, 90.32% of • Completing portions faculties were Hindus and 9.68% of faculties were • Time management in completing various assignments Christian. • Setting standards in front of students 4. Out of 31 faculties, based on qualification, data • Dealings with various meeting available were 29.03% are BE, 6.45% are MPhil, 3.22% are Ph.D, and other which includes M.Tech At home etc. were 61.30%. • Managing spouse • Managing children with their work and studies

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5. 100% engineering faculties are designated as • Most of the women faculties have M.tech as their Assistant Professors irrespective of the number of qualification followed by BE, and then MPhil and least years of experience which include both corporate Ph.D’s. But most of them have the desire to go with experience and academic experience. doctoral degree. In- spite of this 96.78% of teaching 6. 96.78% of teaching employees in the selected employees in the targeted engineering colleges earn engineering colleges earn less than 40,000 and less than 40,000 and 3.22% only earn more than 3.22% earn more than 40,000. 40,000. 7. 41.93% working women faculties were married and • 100% engineering faculties are designated as 58.07% were single in terms of status and none of Assistant Professors irrespective of the number of the faculties were divorced. years of experience which include both corporate experience and academic experience. So it is clear 8. In terms of experience both corporate and academic, that through the women faculties are in the age group 12.90% responded that they have no corporate of 24-30 years they are all designated as Assistant experience at all, 16.12% responded that they have professors. less than one year experience, 61.30% responded that they have 2 to 5 years of experience and 9.68% • Approximately 30% of the faculties either do not have responded that they have more than six years of experience at all or less than 1 year experience. 61.30% experience. responded that they have 2 to 5 years of experience and 9.68% responded that they have more than six 9. 32.26% responded that they do not have any years of experience. Here also I can analyze that academic experience at all, 6.46% had less than 1 with the number of years of experience and no year of academic experience, 29.03% had 1 to 3 experience the work life balance practices would differ. years of experience and 32.25% had 4 to 8 years of experience. Hence here I can find out that 38.72% • More than 38.72% are without proper academic are without proper experience but teaching in experience at all but teaching in engineering engineering colleges. colleges., 29.03% had 1 to 3 years of experience and 32.25% had 4 to 8 years of experience. Hence 10. Out of the total respondent , 87.10% do not have the work life practices differ with the number of years kids which include 58.07% who are single that is of experience. they are not married and 12.90% who are married but do not have children and 16.12% who are married • Out of the total respondents, 87.10% do not have and stays with their in-laws, on the other hand 3.22 kids and 12.9% have kids. Out of total number who % have 2 kids and 9.69% have only 1 kid. do not had kids, 58.07% respondents were single that is they are not married and 12.90% who are 11. Out of the total respondent, those who are single married but do not have children and 16.12% who none stay alone but 58.07% stays with their parents are married and stays with their in-laws and do not or family members. Out of the married category total have kids. On the other hand the total number of number of family members varies from family to respondent who had kids, 3.22 % have 2 kids and family. Out of the total respondent 12.90% are 9.69% have only 1 kid. married and stays with their husband only. 16.12% of working women in engineering colleges stays with • Out of the total respondent, those who are single their husband and in-laws. 3.22 % are married and none stay alone but 58.07% stays with their parents stays with their kids and a 9.69% respondent are or family members. Out of the married category total married and stays with their children and in-laws or number of family members varies from family to family. parents. But the striking factor is 3 families have Out of the total respondent 12.90% are married and more than 9 members in the family i.e. these families stays with their husband only. 16.12% of working are called joint families. women in engineering colleges stays with their husband and in-laws. 3.22 % are married and stays Findings and Interpretation with their kids and a 9.69% respondent are married Finding by Survey and stays with their children and in-laws or parents. But the striking factor is 3 families have more than 9 • Women faculties in the selected Engineering colleges members in the family i.e. these families are joint are vibrant, energetic and youngsters within the age families. Here also with number of members in a group of 24-30 years of age. Hence it can be family the work life balance practices will vary. interpreted that they do not have adequate experience in teaching. So they have to thoroughly prepare • Out of the total respondents, 58.07% are not married themselves for class and hence work life balance and 41.93% are married and hence here also work practices of these working professors differ with age. life balance practices would differ from marital status to status.

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Findings done earlier Bibliography Centre for Work-Life Policy (2001), conducted a survey • Lavanya L, Dr. N. Thangavel (2014), “Work-Life and found out that 40% of the highly qualified women Balance Practices and Demographic Influence: an with spouses felt that their husbands create more work Empirical approach” IOSR Journal of Business and around the house than they perform. It brings out that Management (IOSR-JBM) Volume 16, 104-111 women need to have more strategies in place to balance • DiNatale, M., & Boraas, S. (2002), “The labor force their work and life, and organizations should bring out experience of women from „generation X’,” Monthly policies to support them. Labor Review, 125(3), 3-15. Kirchmeyer (1992) brought out that employees in the • Expert commentary on work-life balance and same organization for a longer period of time, tend to crossover of emotions and experiences: Theoretical make use of the WLBPs available in the company to and practice advancements Author(s): Mina take of their non-work commitments. Westman, Paula Brough and Thomas Kalliath Source: Journal of Organizational Behavior, Vol. 30, Conclusion No. 5, Achieving Work-Family Balance: Theoretical As per Randstad Work monitor Survey Wave 2, 2015, and Empirical Advancements (JULY 2009), pp. 587- Work Life Balance continues to be an evolving topic for 595 India Inc. This topic is important in every one’s life and it • Allen (2001), “Family-Supportive Work environments: should be gingerly acted on. Harmonizing or balancing the role of organizational perceptions,” Journal of is a tough job. Balance is not something one find but it Vocational Behavior, 58(3) 414-435. is something one can create so that wheels of life rolls and move properly without any difficulties. Demographic • Centre for Work-Life Policy (2001), as mentioned in factors do have an impact on work life balance practices. “Off-Ramps and On-Ramps – Keeping talented Work life balance practices are different for different women on the road to success,” Sylvia Ann Hewlett individuals and also it differs with age. Sink or swim is and Carolyn Buck Luce, Harvard Business Review the code word for the situation. To swim we have to on Women in Business, Harvard Business School schedule priorities and see both sides are nurtured with Publishing Corporation 2005 ultimate care. • Kirchmeyer C (1992), “Perceptions of network-to-work spill over: Challenging the common view of conflict- ridden domain relationships,” Basic and Applied Social Psychology, 13(2),231-249

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IMPACT OF MOBILE TELPHONY IN RURAL INDIA

Dr. A. Kumudha1 C.R. Shiv Kumaran2

Abstract Connectivity for long was a problem in India. Right from the 1850s when the telegraph services were launched in the country, until the late 1990s India has always grappled with the problem of finding a way to establish two-way connectivity amongst its populace. Two-way connectivity essentially meant a civilian mechanism wherein a message sent across could be received and responded to back by the recipient. This was essentially possible only through a telephone and of course at a later date the internet. However the expansion of telephone lines in India happened at a slower pace until the advent of the mobile telephone. Much has changed in India from the year 1995 when the first mobile call was made until now because of this development. This paper aims to highlight the potential benefits of the mobile telephone in the rural areas of the country. Key words: Rural India, connectivity, mobile telephone

Objectives However with the advent of technology communication The rapid expansion of mobile telephony and along with started to speed up. Telecommunication was the modern it the ability to access internet presents the Government term that was made use of to describe the ability to and the policy makers with a strong platform through communicate seamlessly over a long distance. The which interactive last mile connectivity can be achieved. history of modern telecommunication in India started with Mobile connectivity enables two way communications the advent of telegram. In the year 1850, an experimental that makes it possible for people to get connected telegraph line was installed between Kolkata and irrespective of the distance and the geography. This enables Diamond Harbour by the British East India Company. accessibility to various stakeholders of our society to Later in the year 1853 construction of about 6,400 take various services commercial and social to people kilometres of telegraph lines was started. In the year who live even in the remote rural areas of the country. 1882 the first telephone exchange was started in Kolkata The main objective of this paper is to identify the benefits and later this facility was extended to other major that will accrue to rural India because of the ability of metropolitan cities of the country. Slowly but steadily a the mobile networks to reach remotely placed people. major Data Collection geography of the country was brought under the ambit of fixed land line connectivity. However the progress in This paper makes use of information available publicly achieving tele-density; that is coverage per 1,000 on World Wide Web. numbers of the population was very minimal and as such History of Connectivity in India a majority of the population was still left out of the scope It is a natural tendency amongst humans to of tele-communication. The late 1980s and early 1990s communicate with one another. Speaking a language or saw the advent of STD/ISD booths spring up all across even gesturing is a medium that is used to communicate the rural landscape. Parallel to the development of the one’s thoughts to another. A new-born baby cries to fixed landline telephone development, the development communicate to its mother that it is hungry. The need and spread of Radio and Telephone networks also for communication amongst humans is as basic as that. happened in India. With the development of technology humans were able However all of this were only basic voice based to communicate across the distance. communication tools that were available only to a few Writing letters, sending a courier man with a message and were strictly one-way communication tools that or sending a dove with a message scroll were all people used only when they needed it. Perhaps until methods that have been used from time immemorial by the mid-1990s India did not have a communication tool humans to communicate across the distance. However which was always on, in the hands of its subscriber and all these methods took time and getting a feedback from enabled a real-time two way communication. the recipient was also too time consuming.

1 . Dr. Kumudha. A , Associate Professor, PSGR Krishnammal College for (W), Peelamedu, Coimbatore. 2 . Shiv Kumaran C R, Research Scholar, PSGR Krishnammal College for (W), Peelamedu, Coimbatore.

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In the year 1995, the first mobile telephone service on a telephony and this figure is on the increase month on commercial basis was made in India and in the same month. All of this means that more of the rural population year internet services were also introduced in India. The is having access to mobile phones and this makes this mobile technology had the potential to free the telecom medium a preferred medium of two way communication. operators from the hassle of establishing last mile Today the mobile revolution in India is in the next phase connectivity, it helped subscribers to have a personal with the advent of smart phones, which is a mobile phone communication tool that could be carried across and that performs many of the functions of a computer, was always on. For the first time in the history of India typically having a touch screen interface, internet access, here was a tool that was personal, mobile and provided and an operating system that supports operation of an opportunity for a two way voice communication. But various programmes aimed at retrieval and exchange of the real utility of the mobile telephony lay not in its ability specialised data. Statistics show that India is now a world- to carry voice communication but in its ability to carry leader in growth. The advent of smart phones information as text or otherwise to the subscriber. This below the USD100 level has led to a virtual explosion of is commonly known as data connectivity. Starting from growth in users of smart phones across the country. the late 1990s this ability would morph into value added Services that were available only on computers are now services that put in the hands of the various stakeholders being increasingly being accessed through the smart the ability to reach out with vital information that would phones and in that way it is correct to state that India make the lives and work of people more meaningful and has leapfrogged into this technology to access the productive. internet from the basic mobile phones without having Growth of Connectivity in India gone through the usual route of computers to tablets to It would be safe to say that India missed the bus in the smart phones. global fixed land line phone connection revolution. But According to the report by Mary Meeker titled, India on whatever ground that the country lost earlier has now the Go – Mobile Internet Vision Report, 2015, 2G been more than made with mobile phone connectivity. technologies will dominate the internet scene in rural As per the statistics of the Telecom Regulatory Authority India, while the urban areas will adopt 3G and 4G of India, the total telephone subscribers’ count in India technologies. However over the years, 3G will enter rural is as follows: India and this will have a profound impact on the economy Table - 1 of rural India. Already as of June 2014, nearly 50% of the Active Internet Users in rural areas accessed internet Particulars Mobile Fixed Total using mobile phones, community service centres and Total Subscribers 980.81 26.15 1,006.96 cyber cafes. Of this nearly 38% of all rural India users (Million) have used the mobile phone to access the internet. It is Urban Telephone 562.95 21.25 584.21 notable that in India, there are more number of people Subscribers (Million) owning smart phones than those that own computers. So increasingly internet penetration in India will happen Rural Telephone 417.85 4.90 422.75 Subscribers (Million) through the mobile phones. Overall Tele-Density 77.90 2.08 79.98 The growth of smart phones in India will increase as their prices keep dropping by the day. Smartphone are Urban Tele-Density 144.25 5.45 149.70 typically used to order goods, read news, monitor crop Rural Tele-Density 48.10 0.56 48.66 growth, access government services, report law and Share of Urban 57.40% 81.27% 58.02% order, manage health, the list goes on. Also the smart Subscribers phones have the ability to support multiple languages which makes them an attractive tool of use in India’s Share of Rural 42.60% 18.73% 41.98% hinterland. This development has the ability to transform Subscribers a country of one billion people by getting them connected Broadband Subscribers 93.15 15.70 108.85 and enabling an equal access to information and services. (Million) Source: TRAI Press Release, No. 47/2015, dated 1st September, How Mobile Telephony will help to transform Rural 2015 India With over two-thirds of India’s population residing in the It is clearly evident from the last but one row of the table rural areas, an effort as soon as possible is needed to that the mobile phone services have made a big time improve India’s standard of living. Indian rural population entry into the rural areas of our country. About 42.60% is challenged by illiteracy, lower levels of , of the rural population seems to be covered by mobile quasi-employment and other issues that inhibit

Special Issue November 2015 Page 59 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 development. Mobile telephony has started to penetrate known or does not reach the farmers and they are then into rural India, however for any real change to happen forced to dispatch their products at the last known price. in rural areas data connectivity needs to get popular. Also without any formal structure for information The TRAI statistics stated above indicate that this trend dissemination, certain agro-markets continue to receive is picking up recently both in urban and rural India. As products despite a supply glut thereby depressing prices mobile technology can be used to tackle the problem of further, while other markets just kilometers away might illiteracy, it will certainly have a cascading effect on the be offering better prices. Marketing challenge is a very economic development of rural India. Now let us look at big problem faced by small farmers who are then some of the benefits that mobile/Smartphone telephony exposed to exploitation by middlemen who offer them will usher into rural India. These benefits are spread poor prices. This in turn affects the ability of the farmers across the various sectors like farming, health, education, to earn a higher income. financial security etc. In a mobile enabled environment, the farmer typically Information inputs for farming sends information on the crop yield and the price that he or she is expecting or in the other way around receives About 60% of the farmed land in India is dependent on information on the prevailing market prices in various monsoonal rains. This means that farmers should always markets across the geography he or she is based in. be in the know regarding the rainfall forecast and patterns The information received in response to the query enables in the monsoon season. In fact, monsoon forecast the farmer to take a better decision. The market price information on a real-time basis will help farmers in information system in fact has successfully been choosing the crop that they want to cultivate during the introduced in a number of countries across the world. It season. While radio broadcasts provide weather is a system wherein a farmer receives a text message information on a periodic basis, the information so containing information on latest market prices on a daily provided is not on a real time basis. On the other hand basis. This enables the farmer to take an informed there are various applications specially developed for this decision. Better still small farmers can group themselves purpose that provide information on rainfall in a particular and consolidate their produce in order to offer the same radius. This information then helps the farmers to choose to big buyers or exporters. This can ensure economies the kind of crops that they want to sow that season and of scale and better price realization for the produce. What the farm practices that needs to be followed. This in applies for agriculture will also apply in equal measure turn would lead to decisions needed to be taken regarding to other farm products like milk, meat, fish, honey, crafts the seeds, fertilizers/nutrients, pesticides to be used etc. and timely activities needed to upkeep the crop. All of this information can reach the farmer through the mobile Thus mobile telephony and the related technology have phone. Also agriculture department officials can the profound effect of increasing rural household income. continuously receive feedback from farmers on the latest Access to financial products like agro-insurance developments on ground and suitably advise the farmers on what needs to be done. This has the effect of enabling Mobile phones can be used to distribute agriculture the concerned officials in covering a larger acreage of insurance to farmers. Majority of the farmers in India do crops than it would be possible if they were to physically not insure their crop against price fluctuations or weather visit the farms. Also information on pest attack related damages and this often leads to a complete loss experienced elsewhere can immediately be made of crop and complete financial distress to the farmer. As available such that other farmers can immediately act the financial markets evolve, new insurance products upon it. The advantage of having smart phones is that targeting the rural farmer can be made available. The audio-visual exchange of information is possible. For mobile telephone platform enables the insurance example, specialized WhatsApp groups can be formed companies to have a better reach to farmers and for the area-wise and relevant information can then be shared farmers it becomes easier to subscribe to insurance in that group. policies and make claims if any thereof. All of this has the effect of increasing farm-productivity This has the effect of safe-guarding the income potential in rural areas. of rural India. Better pricing for agro-products/rural farm based Access to formal banking products One of the major areas of influence that mobile telephony In the traditional way of selling agro products, farmers can have on the financial landscape of rural India is by get information about market price for their products from taking across the formal banking practices to the friends, relatives, middlemen through the word of mouth. doorstep. For long, income earned in rural India was Many a times the information on change in prices is not either stored as cash or gold or was lent to the

Special Issue November 2015 Page 60 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 unorganized sector for receipt of monthly interest Simply put mobile phones can completely transform the payments. This practice exposed wealth to the danger way healthcare is delivered and availed in rural areas of of it being lost, stolen or destroyed. However the advent our country. of mobile telephony and the recent decisional the Empowering people through basic education government wherein the concept of direct cash transfer of welfare payments to bank accounts of beneficiaries Increasingly mobile applications are being built to spread has brought millions of people in rural India under the education in rural areas. With the spread of smart phones ambit of formal banking. Exposure to formal banking in rural areas, it is now possible to spread basic lessons enables people to build a secure financial future for them in language and mathematics than can be learnt by the as money in the bank grows with interest and withdrawals recipient through the instructional form or happen only based on need. The funds so accumulated demonstrational form of education. Mobiles can also in the banks can also be used by the government as supposedly facilitate knowledge-center learning by collateral for any future loan required. The recent decision providing efficient and inventive methods by which of the Reserve Bank of India to allow the commencement students can learn with understanding – meaning that of operations of Payment Banks also has the effect of they deepen their understanding of a specific subject taking Banking service to the doorstep of rural India. matter rather than merely memorizing large amounts of People who hitherto did not have access to a bank information – and then use this knowledge as a basis branch can now safely and securely from the comfort of for new learning through integration and interconnection. their homes can send or receive money or maintain a The main advantage of the smart phone is that it has a savings account with a payment bank. Mobile telephony visual based approach wherein the phone user can see is being increasingly looked upon by the government as the icons on the screen and navigate. The literacy a tool to ensure the success of its Financial Inclusion standing of the user does not matter in here to use or scheme namely the Pradhan Mantri Jan Dhan Scheme. navigate the phone using visual icons. Now this same concept can be made use of to increase literacy in rural Increasingly banks in India are getting interested in areas by imparting lessons in language skills or to build reaching unbanked customers through mobile phone simple mathematical skills. Besides such formal banking channel, as they believe that this method will education mobile phones soon become a tool for gaining be less costly in servicing a customer when compared further knowledge in any area and often become a life- to operation of physical branches. On the other hand long companion to the user in disseminating further network operators see mobile commerce and payments knowledge. Mobile phones along with related applications as a service that can generate more revenue applications can become virtual libraries from which on an existing mobile network infrastructure. Mobile knowledge dissemination can happen whenever there is phones can be used for financial services in three different a need. ways, for micropayments, for transfer of money and as a banking conduit. Information can also be transmitted through the mobile phones about any skill development program or a Extension of Health Services training that is happening in a neighboring area. Mobile One of the major advantage of mobile telephony is that phones themselves can become a tool through which can extend organized health care services in rural areas. people can enroll themselves in such training programs. No longer will there be a need for a doctor/paramedical Also often in rural areas, the youth fail to avail the right staff to visit villages or for the villager to visit the doctors job opportunities due to lack of information and in nearby towns. Once the diagnosis and treatment for awareness. As the majority of the young population has an ailment has been identified, mobile phones can be access to mobile phones a SMS based tool to notify of made use of to communicate with the patient reminding the job opportunities available will go a long way in them about the check-ups to be undertaken, medicine reducing the problem of unemployment or under routine, vaccination, questions relating to health condition employment in rural areas. can be answered, in fact visuals of a health condition can be sent across and the possibilities are limitless. Maintenance of Law and order Through mobile telephony organized health care can be Mobile phones form the perfect platform for dissemination extended to the needy. Queries or instructions relating of information concerning law and order in any area. Any to nutrition and child care can be shared to women who untoward incident happening even in the remotest may otherwise be hesitant to go to clinics for corners of the country can now immediately be reported consultations. Such queries can be answered by women to the concerned authorities for remedial action. In fact medical professionals to rural women who make the calls there are special applications that are now available to from the privacy of their homes. report instances like child marriage, domestic violence, burglary and other such crimes. This mechanism enables

Special Issue November 2015 Page 61 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 the government to exercise its writ effectively and enables various stakeholders to reach hitherto efficiently across the country and render justice to the unreachable communities and provide them with various population. Before the advent of mobile phones, services that will bring about their uplift and development. information took time to reach the nearest police station Given the various advantages as discussed above, India and by the time it reached, it was often biased. But with is on the threshold of a mobile revolution that aims to mobile phones making communication instantaneous make the entire country more vigilant, aware, productive, all such problems are eliminated completely. educated, healthy and safe place. Mobile phones will play a very important role in enabling rural communities Thus mobile phones enable better law and order in rural to access the internet and get hold of information that areas and thereby ensure prevalence of social order even will better their lives. in far flung areas of the country. Reference Conclusion: • Wikipedia We can observe that the mobile phones (now morphing into hand-held computers) hold the potential to offer • Telecom Regulatory Authority of India unrivalled last mile connectivity to rural areas. The major India on the Go – Mobile Internet Vision Report, 2015, allure of the mobile phones is their ability to not only Mary Meeker carry voice data but also usher in data connectivity, which

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OCCUPATIONAL HAZARDS OF WOMEN WORKERS IN GARMENT SECTOR

Dr. Pankajakshi. R. 1 Prof. Shailaja.M. L. 2

Abstract The industry is one of the India’s oldest industries, among the cotton producing countries of the world India stood at the first rank for cotton cultivated area & third in production. Apart from agriculture, the second largest employment provider in the country is the textile industry providing direct employment to over 35 million people. In the world market share India has the potential to enhance its share in textile & apparel and reach to a US$ 80 billion by 2020.Women form an integral part of the Indian workforce. Women constitute to the half of the Indian population and one third of the work force, though both the genders work together but still there are differences compared to 25.63 per cent in 2001. According to Employment and Training department, Bangalore the total employment of women in organized sector as on 31st March 2012 was 7,64,669 of which 2,90,983 were in public and 4,73,686 were in private sector for the Total population of 23,47,177. As per Census 2011, the work participation rate for women has slightly decreased from 25.63% to 25.51%.This conceptual paper basically tries to analyze the working environment of Women workers in Garment sector, problems and the challenges faced by Women in the garment sector through the information available from secondary sources and the suggestive measures to be taken by the organizations related to Garment sector for the betterment of Women Workers: Key words: Women workers, Garment sector, Challenges, Suggestive measures

Introduction • India’s products are exported to over 100 The textile industry is one of the India’s oldest industries, countries India stood at the first rank for cotton cultivated area & • Two-third of India’s textiles are exported to the US third in production among all cotton producing countries and EU in the world. Next to China and USA, India is the second • Other major export destinations include , largest producer of silk and seventh largest producer of UAE, , , Republic of Korea, wool in the world and being the source of the major Bangladesh and . contributor to income, exports, employment and foreign exchange earnings. Source: Ministry of Textiles Based on the information available through the Data As per Ministry of Textiles, Government of India, the released by the Apparel Export Promotion Council, the Indian market size of technical textiles was Rs 63202 industry of garment exporters have estimated the exports crores in the year 2011-12 which has grown from 41756 of India at $40 billion in 2013 as compared with China’s crore in the year 2007-08 with annual growth of 11% $274 billion. Textile refers to everything like fiber, yarn to year on year basis. As per the sub-group on technical fabric, readymade garments made of cotton, silk, textile for 12th five year plan, it is expected that the synthetic yarn and wool. In the global trade more than technical textile industry market size will reach Rs. 55% relates to readymade garments in which India 1,58,540 Crores by the year 2016-17 with a growth rate ranked 6th in 2013 with a total exports of $16 billion, which of 20% year on year basis is 40% of the country’s total textile/garment exports. Basic Facts: Indian Textiles and (T&C) exports The Indian Ready-made Garment Industry had its origin • India’s share in global T&C trade: 4% in textiles and during World War II focusing on the mass production of 2.8% in clothing military uniforms. The industry turned to exports in the • India’s rank in world trade: 7th in textiles and 6th in year 1969-70. Due to global economic slowdown, the clothing Indian textile Industry is facing challenges of strong • Share in the country’s total exports basket: 12% demand side pressure because of inflationary trends and volatility in commodity prices. • Readymade garments share: nearly 50% of total textile exports

1 . Associate Professor, Department of MBA, VTU, Muddenahalli , Chikkaballapur. 2 . Associate Professor, Department of MBA, Dr. Ambedkar Institute of Technology, Mallathahally, Bangalore.

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Ms. Anupama et.al (2013), has quoted in their paper of garmenting units, Garment sector has witnessed a that the Readymade Garments Industry is vital to the growth in investments in Karnataka State and the economy of the country. The industry has given 6% to capacity in garmenting has been drastically increasing. the GDP & has earned 16% of foreign exchange of the There are approximately 6500 units (Large, Medium and country. It consumes almost 40% of the fabrics Small) at organized and unorganized level with a produced in the organized and decentralized sectors presence in 20 districts across the State with the combined of the textile industry and employs around 40 potential for more employment opportunities. lakhs persons. The top 10 destinations for India’s Employment of Women in different sectors readymade garment exports account for nearly 80% of total readymade garments exports in India. Among the Women form an integral part of the Indian workforce. leading 10 export markets, the US accounts for the Women constitute to the half of the Indian population largest chunk; readymade garment exports from India and one third of the work force, irrespective of men and to the US had the largest share of 25% during the women work together but still there are gender financial year 2011. differences. According to the information provided by the office of Registrar General & Census Commissioner of Apart from agriculture, the second largest employment India, As per Census 2011, in India, the total number of provider in the country is the textile industry providing female workers is 149.8 million and rural female workers direct employment to over 35 million people. In the world are 121.8; urban female workers are 28.0 million. Out market share India has the potential to enhance its share of total 149.8 million female workers, females working in textile & apparel and reach to a US$ 80 billion by as cultivators are 35.9 million and agricultural laborers’ 2020. Indian Textile industry can be categorized as are 61.5 million. Of the remaining female workers, 8.5 cotton, silk, woolen, handicrafts, readymade garments million are in household Industry and 43.7 million are and so on. In developing countries, the Apparel and the classified as other workers. textile industries manufacturing readymade garments being one of basic needs of the human being have As per Census 2011, the Women Work Participation contributed towards the employment of many in their rate is 25.51 percent as compared to 25.63 per cent in industries and women in particular. The garment sector 2001. The Women Work Participation rate has reduced can be seen as low capital intensive and highly labor marginally in 2011 but there is an improvement from 22.27 intensive industry. The workers employed are both skilled per cent in 1991 and 19.67 per cent in 1981. The Women and unskilled workers. Work Participation rate in rural areas is 30.02 per cent as compared to 15.44 per cent in the urban areas. Karnataka is considered to be one of the desired location According to Employment and Training department, for setting up industries. To meet the needs and increase Bangalore the total employment of women in organized the economic status of the state, it is essential to set sector as on 31st March 2012 was 7,64,669 of which up industries in the state to have progressive outlook. 2,90,983 were in public and 4,73,686 were in private Karnataka State comprises of large public sector sector for the Total population of 23,47,177. industrial undertakings, large privately owned industries like , sugar, textiles etc. Karnataka has emerged As so far the organized sector is concerned, in March, as the leader in IT & BT (in specific Bangalore). 2011 women workers constituted 20.5 percent of total Karnataka is considered as knowledge based industrial employment in organized sector in the country which is sector, making rapid strides in IT & computer related higher by 0.1 percent as compared to the preceding year. industries. Apart there are developments taking place in As per the last Employment Review by Directorate the field of biotechnology, traditional cottage, Handicrafts, General of Employment & Training (DGE&T), on 31st Handlooms, Power looms, silk weavers, Khadi and so March, 2011, about 59.54 lakh women workers were on. employed in the organized sector (Public and Private Sector). Of this, nearly 32.14 lakh women were More than 92% of the working population of the country employed in community, social and personal service belongs to the unorganized sector. The State sector. Government has constituted the Karnataka State Unorganized Workers’ Social Security Board in October This conceptual paper basically tries to present the 2009 and the State Government has also framed the working environment of Women workers in Garment Unorganized Workers’ Social Security (Karnataka) Rules sector, problems and the challenges faced by Women in 2009. The State Government has so far identified 39 in the garment sector through the information available categories of unorganized workers out of which garment from secondary sources such as Annual reports, sector also being part of private unorganized sector. As statistical data from Department of Labor, Department Karnataka has large cotton growing belts, and number of Women and Child Development, Government of Karnataka and Government of India, Relevant reports of

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Planning Commission, Economic survey reports and • Employee reporting late to work, any minor mistakes various other sources. and when the deadlines are not met, then the employee has a fear of being fired by higher ups. Review of Literature • Most of the industries are located outskirts of the Sudeshna Saha (2014), the author in their study Women city when companies do not provide transportation Employees in Garment Industries, selected industries facility then it becomes difficult for the workers to in Bangalore has focused on the working condition of reach the company on time. the women in the unorganized garment sector, the issues relating to the working conditions, the socio-economic Health Related background of the employees, the problems encountered • The employees especially in stitching, cutting, by the work force and the coverage of the labor laws in tailoring section meet with injuries such as needle Garment Industries. piercing, finger injury and so on. Anupama et.al (2013), in their paper focused on the • Reproductive problems are being faced due to sitting Innovative HR practices to improve Socio-Economic for long hours in a single position without stretching conditions of the Garment industry Women Workers of legs. through an Empirical Study. The pilot study indicates • Health problems such as anaemia, low eye sight, that the companies adopting HR practices have seen a orthopaedic relate problems. positive results in terms of better social status, increase in productivity of employees and decrease in problems Gender discrimination and women harassment pertaining to IR issues. • Gender discrimination at work and at times women S Calvin, B Joseph (2006), the author has tried to workers are deprived in considering for higher identified the common accidents that occurred in the positions. garment industries and the factors associated in order • Male employees are being given high skill training to recommend preventive steps. and also work during night shifts with extra pay whereas female employees are denied of the same. Problems and Challenges faced by the women workers in garment sector: • Certain work places, Women workers are being harassed verbally, mentally and sexually. Based on the available information through secondary sources, the problems and challenges faced by the • In some of the organizations the employees have women workers/employees in the garment sector are been asked to sign the contract without even detailing discussed below: the contents of the contract. Infrastructure Related Policy Related: • Improper infrastructure facility such as work place • Implementation of Labour laws (Factories Act 1948, overcrowded, less ventilation, poorly illuminated Minimum wages Act, 1948, The Employee State rooms. Insurance Act, Maternity Benefit Act 1961 so on.) • Poor canteen facilities, inadequate crèche facilities • Delay in addressal of Women workers problems and and restrooms. the functioning of women grievance cell. • Inadequate toilets and facility. • Follow up of Minimal wages with benefits; irregular and untimely wages, not good working conditions Employment Related and safety measures are not being taken care of. • Extreme work pressure with denial of leave and • Women workers have very little awareness and absence from the work, the employees has a fear of information about the rights of the worker and as a losing job. human being. • There is no job security, as some of the workers are Suggestive measures to be taken by the on contract and not a permanent employee. organizations related to Garment sector for the • In certain companies the employees are deprived of betterment of Women Workers: benefits such as PF, gratuity, bonus, ESI etc. • Proper infrastructure facility has to be provided such • High employee turnover due to minimal pay leads to as drinking water, proper ventilation for lighting, stressful work and also due to targets to be achieved. canteen facility with affordable food charges, crèches • At certain situations the employees are asked to work facility can be provided for the needy with nominal long (overtime) without any additional remuneration. charges for the same, rest rooms and overall good • Retrenchment rate is found to be high due to high working environment. supply of casual labour inflow daily.

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• Implementation of Labour laws should be followed state or can even become the cause for the collapse of such as Factories Act, Minimum wages Act, The the state. Women workers in the garment sector come Employee State Insurance Act, PF, Maternity Benefits from low education and economically not well off. In and so on. order to encourage and take care of the safety and • Change in the mind-set and the attitude through security of women workers, the companies need to come encouraging Women workers and promoting them up with suitable measures to meet the challenges of to higher position based on merit without any gender the women workers faced in garment sector and also for discrimination can motivate the women workers to the women workers to face and sustain the challenges perform even better off and also can create a of the highly competitive environment. competitive spirit. References • Presence of Women Grievance Cell (WGC) is • A Brief Report on Textile Industry in India, May 2014, essential to address the problems of the women Corporate Catalyst India, Pvt. Ltd. New Delhi. workers through a meeting held regularly. • Annual Report, 2012-2013, Department of Women • Providing extra pay for the over time workers with and Child Development – DWCD, Government of transportation facility, incentives provided based on Karnataka. the target achieved. • Anupama et.al (2013), “Innovative HR practices to • Emphasising on development of skilled manpower improve Socio-Economic conditions of Women for the use of industry, focusing on the skill up- Workers in Garment Industry - An Empirical Study” gradation of women workers. in IOSR Journal of Business and Management (IOSR- • Regular training has to be provided for the women JBM) e-ISSN: 2278-487X, p-ISSN:2319-7668, Volume workers on safety and security measures such as 9, Issue 6 (Mar – April: 2013), pp: 16-21. proper use of Personal Protective Equipment’s –PPE • Dr.Pankajakshi R., and Mrs.Arundathi S.V., (2012) to avoid accidents. “Key Challenges and Strategies – Women Attrition • Frequent medical check-ups and conduction of in Organization (A conceptual Analysis in Indian recreation programs such as Yoga, meditation Perspective)” ISBN: 978-0-61-73960-1, ARC-2012 – classes to overcome stress and health related International Conference on Business and problems of women workers. Management, Page No. 226-230. • Women workers in the garment sector come for poor • Dr. Sunil Deshpande and Ms. SunitaSethi (2009), background, so there is a need for some sponsorship/ Role and Position of Women Empowerment in Indian scholarships to encourage the studies of the children Society”, International Referred Research Journal, of the workers. ISSN-0974-2832, vol. I, Issue-17, RNI: RAJBIL/2009/ • As the Textile and Garment sectors are providing large 29954, pp: 24-27. employment especially to women, recognizing and • Nuthana Javali Neethi: 2013-2018, New Textile Policy, rewarding the best performer can create a competitive Government of Karnataka. spirit among the women workers. • Productivity & Competitiveness of Indian • Regular counselling has to be provided to the women Manufacturing Sector: Textiles and Garments, workers in order to have work life balance. National Manufacturing Competitiveness Council • Conduction of regular awareness programmes about (NMCC), Government of India, New Delhi. the rights of the women workers so that the women • Ramanna Shetty , K.B. Kiran, Mihir Dash(2013), “A workers have information and is in better position to Study on the Impact of Quota Removal on the Textile handle situations at the work place. and Clothing Industry in Karnataka State” • Entrepreneurial programmes can be organized for the International Journal of Economy, Management and women workers to make them more competitive and Social Sciences, 2(6) June 2013, Pages: 277-284 face the changing environment. • S Calvin, B Joseph (2006), “Occupation Related Accidents in Selected Garment Industries in Conclusion Bangalore City” Indian Journal of Community Medicine Women is strength of the family and the nation, Women Vol. 31, No. 3, July - September, 2006. form an integral part of the Indian workforce. Women • S. Sulaja (2004), “Social Development and Women play a multi skilled role for the economic development in Status –An Analysis of South Indian States”,The and for the betterment of the society. Women constitute Journal of Family Welfare, Vol. 50, No.2, December to the half of the Indian population and one third of the 2004, pp: 55-57. work force. Indian women have the capability of ruling a

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• Srilatha Batliwala (2011), “Strengthening Monitoring • Sudeshna Saha (2014), “Women Employees in and Evaluation for Women’s Rights: Thirteen Insights Garment Industries A Case Study conducted in for Women’s Organizations” Association for Women’s selected Garment Industries of Peenya Industrial Rights in Development (AWID), Toronto, Canada, Area, Bangalore” in International Journal of 2011. Management Research and Business Strategy - IJMRBS, ISSN: 2319-345X, vol. 3, No. 3, July 2014, pp: 128 – 137.

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A COMPARATIVE ANALYSIS OF FINANCIAL INCLUSION STRATEGIES IN BANKS WITH SPECIAL REFERENCE TO SBI AND ICICI

Dr. Catherine Nirmala Rao1

Abstract Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. An estimated 2.5 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions. The term "financial inclusion" has gained importance since the early 2000s, a result of findings about financial exclusion and its direct correlation to poverty. Less than half the population in India has access to any formal financial instrument. Previous work and initiatives in promoting financial inclusion have mostly focused on the process, that is, how to make banking costs lower. However, such efforts have seldom yielded much. The institutions relied upon have their own problems. Even after 60 years of independence, a large section of Indian population still remains unbanked. This malaise has led generation of financial instability and pauperism among the lower income group who do not have access to financial products and services. However, in the recent years the government and Reserve Bank of India has been pushing the concept and idea of financial inclusion. Reserve Bank of India has planned Aadhaar-linked bank accounts for all adults of India by January 2016 to meet its commitment on financial inclusion. This study is an attempt to analyse and compare the strategies for financial inclusion of State Bank of India and ICICI Bank. The role of Bank Linkage schemes with SHG s and the role of MFI s in financial inclusion strategies of SBI and ICICI Bank are evaluated. Key words: : Financial Inclusion, MFI s (Micro Finance Institutions), Self Help Group (SHG) linkages, Prime Minister’s Jan Dhan Yojana (PMJDY)

Introduction But if you are poor, you are also probably out of luck The traditional image of Micro Finance is one of charitable with the banks; it is tough persuading them to even let activity conducted mostly by nonprofit organizations and you open a bank account. The consequences have been separate from the mainstream financial system. devastating. 75 million households in India depend on However, this image has been changing in India in the money lenders to meet financial needs; almost 90% of last few years as Commercial Banks have been widely people in rural India have no access to insurance; 50 entering the sector. Banks in India have begun to enter million households are landless and need small credit the Micro finance lending Market, and many are to start some economic activities. And even families partnering with regional Micro Finance Institutions. earning Rs. 4000 – Rs. 5000 a month in urban areas Increasingly, loans as small as Rs. 4600 are being offered spend huge portions of their earnings to service their by mainstream Indian Banks such as ICICI, SBI, HDFC ever continuous debt. and UTI, and often contain unconventional covenants But out of necessities and enterprise, these locked out typical of Micro Finance transactions. of the banking system would have found a way out. It is India has one of the largest networks of bank branches called Micro Finance – the extension of small loans to in the world, but the hundreds of millions of poor in the individuals who are too poor to qualify for traditional bank country are largely out of it. Banks were nationalized loan as they have no assets to be offered as guarantee. three and a half decades ago with the hopes and promise In India Micro Finance has worked largely through SHGs. that their products and services would reach the poor. Predominated by women, these are formed with simple But that goal is not even close to being met today. With rules – save, accumulate and give loans to each other. 52000 Commercial banks branches, 14522 branches of The negative one is that India’s demand for Micro Finance Regional Rural Banks and 100000 Cooperative Banks is Rs. 500 billions, and only Rs. 18 billion of this amount branches, the country is teeming with institutions that has been generated so far; there is still a long way to should be able to meet the credit needs of the people. go. The poor need banking services more than credit,

1 . Associate Professor & Head of Department of Commerce , St. Agnes Centre for PG Studies & Research, Mangalore.

Special Issue November 2015 Page 68 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 as they need to safely secure their little saving or transactions, like the USA, with higher transparency and remittances coming from their men folk who have accountability. migrated in search of work. The Reserve Bank of India (RBI) had set up the Khan Even the few banks in India who now belatedly recognize Commission in 2004 to look into financial inclusion and the potential in rural banking lack capability to serve. the recommendations of the commission were This market, which has been neglected for so long, incorporated into the mid-term review of the policy (2005– needs intermediaries to help build their capacity to do 06). In January 2006, the Reserve Bank permitted business with small borrowers. Today’s banks are flush commercial banks to make use of the services of non- with money. If Micro Finances are strong, banks will governmental organizations (NGOs/SHGs), micro- readily lend to them. That there are significant finance institutions, and other civil society organizations opportunities for banks in Micro Finance is now as intermediaries for providing financial and banking unquestioned. services. These intermediaries could be used as business facilitators or business correspondents by Review of Research Literature commercial banks. The bank asked the commercial Devaraja, T.S., 2011. “Microfinance in India - A Tool for banks in different regions to start a 100% financial Poverty Reduction”. Devraja T.S. has studied the India’s inclusion campaign on a pilot basis. Reserve Bank of achievement of the Millennium Development Goals of India’s vision for 2020 is to open nearly 600 million new having the population of poor by 2015 as well as achieving customers’ accounts and service them through a variety a broad based economic growth also hinges on a of channels by leveraging on IT. successful poverty alleviation strategy. In this backdrop, This study is an attempt to analyse and compare the the impressive gains made by SHG-Bank linkage strategies for financial inclusion of State Bank of India program in coverage of rural population with financial and ICICI Bank. The role of Bank Linkage schemes with services offer a ray of hope. SHG s and the role of MFI s in financial inclusion Saundariya Borbora and Ratul Mahanta (2001) strategies of SBI and ICICI Bank are evaluated. assessed the role of SHGs in inculcating saving habits Methodology among the poor and the contributions of the program in The data and information collected for this study is the social and economic empowerment of the poor. 80 acquired from secondary sources. The secondary percent of the beneficiaries could also expand their sources mainly consisted of ICICI banks of India income generating activities. published and unpublished records and SBI published Sridhar Seetaraman (2005) assessed the socio- and unpublished records, RBI annual reports, NABARD economic impact of SHGs through field level data. Study reports, journals, books, magazines and related revealed that creation of income-generating activities websites. through loans availed of from banks has made a Objectives of the Study significant impact on the overall economic status of the group members. Additional employment generated 1. To study the effectiveness of Bank linkage schemes through the groups’ collective functioning has provided of SHG offered by SBI and ICICI banks. scope for increase in the household income. 2. To evaluate the schemes of Micro Finance offered by SBI bank and ICICI bank. Statement of the Problem 3. To compare the effectiveness of performance of private Even after 60 years of independence, a large section of and public sector banks with regard to SHG-bank Indian population still remains unbanked. This malaise linkage schemes. has led the generation of financial instability and pauperism among the lower income group who do not Hypotheses have access to financial products and services. However, The service quantum of SBI in the area of micro finance in the recent years the government and Reserve Bank of through bank linkage schemes is far greater when India have been pushing the concept and idea of financial compared to ICICI. inclusion. Reserve Bank of India has planned Aadhaar- linked bank accounts for all adults of India by January Analysis and Interpretation Of Data 2016 to meet its commitment on financial inclusion. It ICICI Bank will greatly transform India by preventing the poor falling The Indian Banking system has three distinct tiers. The into debt-traps of unlawful money-lenders, promote first tier, where ICICI competes consists of commercial cashless transactions, elimination of poverty and banks, of which there are approximately 80. In the next corruption. Once bankcards become common in rural tier are Regional Rural Banks, which operate in areas, India will become a nation of cashless approximately 200 rural command areas. The last tier

Special Issue November 2015 Page 69 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 consists of Cooperative and special Purpose Rural for selection of SHG members and SHGs would be Banks. There are more than 350 Central Cooperative homogeneity in the socio economic background as well. Banks, 20 Land Development Banks and the number of The SHGs followed the normal pattern of saving until Primary Agricultural Credit Societies. India certainly has they had internally collected an amount of Rs.6000 in a an extensive and wide reaching banking system. Yet bank account by each member of the group. After this, despite fairly broad banking coverage nationwide, the the amount collected would be lent internally at 24% financial system remains inaccessible to the poorest p.a. This rate of interest was much less than was people in India. available from the informal lenders, and the entire group stood to gain as the interest was churned back into the Banking with the poor is a challenging task as the nature group. of demand requires doorstep services, flexibility in timings, and timely availability of services, low value and ICICI Bank achieved a high rate of growth, reaching 8000 high volume transactions requiring simple processes with SHGs in March 2003, with its team of 20 project minimum documentation. The nature of supply however managers. Within three years of the merger with Bank involves high cost of service delivery, rigid, inflexible of Madura, ICICI Bank had extended its reach to 12000 timings and procedures and high transaction costs for SHGs. However, the pace of outreach was still slow, the customers. With these features on the supply side, and the Bank began to experiment with other models of traditional banking is not poised to meet the requirements reaching the unreached. This was because existing of the demand side. The reach of the banking sector in branches could be leveraged for outreach, but in areas the rural areas was as low as 15% in terms of credit where there were no ICICI Bank branches, it would not potential, and 18% in terms of population with physical be viable to set up branches solely for the purpose of access to a bank branch. rural outreach, as such branches would have a very long gestation period and would costly in terms of overheads. ICICI Bank chose to pursue the unreached rural markets ATMs were also costly proposition and the infrastructure as part of its strategy of being a universal bank. However, required was not in place in most of the remote areas. instead of taking the conventional branch banking model for increasing its outreach, the Bank decided to work It was felt that in the case of the SHG formation, there with models which would combine the strengths of was no risk sharing or financial stake/performance stake intermediary forms of organization with the financial of the social intermediary (NGO) in the process of group bandwidth of a banking institution. formation. Once the groups were formed and linked to Bank credit, there was no more responsibility on the Initiation to Microfinance – The SHG Bank Linkage part of the NGO. The SHGs had been repaying at very Model good rates, above 95%, yet there was a need to control To enable its foray into the rural markets, ICICI Bank the quality of group formation and link it to credit merged with the Bank of Madura (est.1943), which had discipline. ICICI Bank also worked with Self Help a substantial network of 77 branches in the rural areas Promotion Institutions to outsource the work of group of a South Indian state – Tamil Nadu. The Bank of formation institutions whose core competence was in Madura had expertise in catering to the needs of the social intermediation. small and medium sector and had a strong network of SHGs. At the time of the merger the Bank of Madura Microfinance Institutions (MFI) Intermediation had 1200 SHGs. However, the program was not yet Model sustainable. To reach profitability ICICI Bank devised a ICICI Bank began to experiment with the micro finance three- tiered structure. The highest level was to be a institutions (MFI) as a substitute for the more regular project manager, who would be an employee of the bank. Self Help Group. The MFIs were willing to take on the Six coordinators would report to each project manager risk of the financial performance of the groups/individuals and would in turn oversee the work of 6 promoters. The that were being lent to. Therefore the stake in good target for promotion of groups was 20 groups within 12 quality group formation was also built in. Also, this months, upon which the promoter would receive financial channel was better for leveraging large amounts of funds compensation from the Bank. The coordinator would without necessarily having a grassroots level presence usually be an SHG member who would coordinate the of the bank staff. The MFI would undertake the processes activities of the promoters. and operationalization in terms of group formation, cash management, disbursal and recovery, and also record The women who had finished a year of promoting the keeping. The Bank would lend to the MFI which would requisite 20 groups were given the designation of Social then repay the bank. Service Consultant. These would travel within a radius of 15 kilometers, in order to promote as many groups The MFI-Bank linkage model paved the way for taking a within their area as possible. Strict guidelines were set wider range of services to the financially underserved

Special Issue November 2015 Page 70 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 populace. These financial services include provision of undetected default due to slackness in monitoring. Costs micro insurance tailored to the cash flows and insurance would have to be recovered to ensure sustainability. The needs of the low-income clients. The intermediation model would also have to incentivize growth and preserve model at first looked scalable, but there seemed to be the incentives of the originator (of the portfolio) to maintain constraints in this model as well. For instance there portfolio performance. was a double charge on capital created, once at the ICICI Bank is India’s second – largest bank with total level of the Bank lending to the MFI on lending to the assets of over Rs.100000 Crore (about US$ 20 billion) client. This seemed to be a sub optimal lending structure and a network of 450 branches and offices and over 1700 due to the double counting that also, because the small ATMs. The bank has an approximate 30 percent market balance sheet size, unduly affected the risk perceived share in the retail segment, and was one of the first about the MFI, even if it had very robust systems and commercial banks in India to realize the potential of the processes. Other key challenges to performance were microfinance sector. The Reserve Bank of India (RBI) that the MFIs could not grow and scale as fast as their requires all private sector banks in India to allocate at capabilities would permit, because of severe capital least 18 percent of their net bank credit to the agricultural constraints. MFIs were exposed to the entire risk of sector. ICICI Bank is aggressively focusing on lending to the end clients, despite their constrained risk microfinance to expand its portfolio size. appetite. Most MFIs were operating in a single geography, and the systematic risk that they were Direct Lending to Self – Help Groups (SHGs) exposed to was large. This put undue risk bearing on ICICI Bank has a portfolio in excess of Rs 60 Crores these organizations, especially in the light of their limited (about US$ 12 million) in direct lending to SHGs. The geographical risk diversification capabilities. Banks, direct lending portfolio is currently concentrated in the which were lending ostensibly to the end-clients, could state of Tamil Nadu. ICICI Bank devised and not get access to any information regarding the implemented a low cost structure consisting of locally repayment capacity, or repayment behavior of the end recruited promoters and coordinators. The SHG program clients, as the MFI not only acted as an operating and has grown to scale under the new structure and presently servicing agent, but also assumed the entire risk. If the 9,500 SHGs have been promoted and linked with the MFI collapsed due to any internal organizational issues Bank for their credit and saving requirements. as opposed to client default, the entire client segment which had demonstrated creditworthiness would be State Bank of India deprived of a service provider. On the one hand were the SBI -SHG-Bank Credit Linkage competencies of the Bank (Which had a large amount SBI has actively participated in SHG-Bank Credit Linkage of finances waiting to be channeled into the sector) and program since its inception in 1992 as a pilot project of on the other, the social intermediation expertise of the NABARD. Since then, the Bank has made a steady MFI (which had a grassroots presence customer progress in financing SHGs. SBI is maintaining its outreach and contact, and could also achieve better position as a leader among Commercial Banks in credit economies of scale if it scaled up and extended outreach linking of SHGs and is a prime driver for the movement. faster). There was a need to combine the strengths of As at the end of March 2013, SBI, with a share of both players, while also building in the correct incentives approximately 22% of total SHGs financed by and using capital parsimoniously to leverage the Commercial Banks, is the leader among banks. As on maximum value and client outreach from it. There was 31st March 2014, Bank’s exposure under the scheme is also a need for close supervision and information tracking Rs. 5,134 Crore to 4.47 lakh SHGs, 92% of these SHGs so that at no stage would rapid expansion lead to are women SHGs. (Table - 1)

Table - 1 : Comparative Analysis of Micro Finance Services Offered to the Poor

Government Financial Products of Commercial Parameter Money Lender Sponsored Micro Finance Banks Programs Institutions Ease of Access High Low Low High Transaction Cost of Low Very High Very High Low –Medium Access Lead time For Loans Very short Extremely Long Extremely Long Short

Repayment Terms Fixed and Rigid Fixed and Easy Fixed and Easy Flexible

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Interest Rates Exorbitantly Low and very Low, Affordable Reasonable and Affordable and Subsidized Affordable Incentives None None None Repeat and Larger Loans, interest Rebates Repeat Possible Possible but not Possible but not Stream of Credit Borrowing Likely Likely Is Assured Loan Access Very Quick Extremely time Extremely time Simple and Quick Procedures consuming and Cons uming and complicated Complicated

Loan Application Informal and Exhaustive Exhaustive Simple and Informal Procedures Exploitative And complex And complex Collateral and Mandatory Required but Not required Not required, social Demand Promissory hypothecation although a charge collateral is used for Note of asset may on the asset physical collateral. suffice becom es autom atic

Table - 2 : Showing overall progress of SBI and ICICI SHG - Bank linked programme

Particulars 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14

Amt. Amt. Amt. Amt. Amt. SBI Bank loans Disbursed to SHGs 2821.19 3063 3249.65 3526.66 3866.13 during theYear Bank loans Outstanding 5892.89 5470.99 5658.05 5600.28 5133.57 with SHGSas on st 31 March

ICICI Bank loans Disbursedto SHGs 2145.82 1689.89 1104 1901.45 2863.6 during theYear

Bank loans Outstanding 2809.1 2793 2379.14 3217.6 3496.22 with SHGS as on 31st March

Over the years it has been noted on the whole, that the Banks have been performing really good. It is noted that the quantity of the SBI bank been greater than of the ICICI bank, as ICICI concentrates on quality. It is clear that the SBI been performing well by disbursing large amount of loan, which is favorable to the bank. The table also denotes that the loans outstanding of SBI been decreasing. This shows that banks have succeeded in recovering the loans outstanding to a greater extent. Thus the bank is performing well. H0: There is no difference between the loans disbursed and loans outstanding of SBI and ICICI banks to SHG – Bank linked schemes H1: There is difference between the loans disbursed and loans outstanding of SBI and ICICI banks to SHG - Bank linked schemes. (Table - 3) Interpretation The t test attributes the P value less than 0.05 at the 95% confidence by that it has been rejected the null hypothesis and says that there is difference between loans disbursed and loans outstanding by the banks to SHG bank linked schemes. By this it is clear that SBI is been performing well over the years by offering good amount of loan to the poor as compare to ICICI.

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Table - 3 : Paired Samples Test

Paired Differences t df Si g. 95% Confidence Interval (2- Mean Std. Std. Error of the Difference Deviation Mean tailed) Lower Upper loan disbursed Pair 1 ICICI - loan -1364.37400 566.60425 253.39313 -2067.90610 -660.84190 -5.384 4 .006 disbursed SBI loan outstanding of ICICI - loan Pair 2 -2609.55600 646.65862 289.19453 -3412.48873 -1806.62327 -9.024 4 .001 outstanding of SBI

Table - 4 : Showing comparative statement of SBI and ICICI SHG Bank linkage programmes for the year 2012-13 Amt. in Crores Increase or Increase or 2011 - 12 2012 - 13 Banks Particulars decrease decrease Amt. Amt. Amt. in% Bank loans Disbursed to SHGsduring theYear 3249.65 3526.66 277.01 8.7

SBI Bank loans Outstanding with SHGS as on 31st March 5658.05 5600.28 -57.77 -1.02

Bank loans Disbursed to SHGs during the Year 1104 1901.45 797.45 72.23

ICICI Bank loans Outstanding with SHGS as on 31st March 2379.14 3217.6 838.46 35.24

Table - 5 : Showing comparative statement of SBI and ICICI SHG Bank linkage programmes for the year 2013-14

Amt. in Crores Banks Particulars 2012 - 13 2013 - 14 inc.or dec inc. or dec Amt. Amt. Amt. in% Bank loans Disbursed to SHGs during theYear 3526.66 3866.13 339.47 9.6 SBI Bank loans Outstanding with SHGS as on 31st March 5600.28 5133.57 466.71 8.33

Bank loans Disbursed to SHGs during theYear 1901.45 2863.6 962.15 50.6 ICICI Bank loans Outstanding with SHGS as on 31st March 3217.6 3496.22 278.62 8.65

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The table shows that o/s loans to SHGs by the banks. SBI has loans o/s of-1.02% in the year 2012-13 and -8.3% in 2013-14. This shows favourable result to the bank as it has succeeded in recovering the loan to a greater extent. This shows that the SBI bank is concentrating more on recovering the loan, where it feels that it has been generous in disbursing loan in the past years. Even the ICICI bank have succeeded in recovering the loan o/s. i.e 35.24% in the year 2012-13 and in 2013-14 it is – 8.65% this is clear sign that bank has recovered the loan and performing well. Table - 6 : Showing Cumulative progress of SBI - SHG - Bank linkage programme for the year 2013-14 No and amount in Lakhs Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 NO.of SHGs 1216891 1270604 1351792 1716898 1898832 No of Beneficiaries 15453057 16198891 17156300 18388417 19206635 Amount in Savings Account 84650 87926 93406 95951 97763 Amount disbursed 282119 306300 324965 352666 386613 Amount Outstanding 589289 547099 565805 560028 513357

The above table is an Analysis of State Bank of India, • Finally, it can be seen in the table that there is a SHG – Bank Linkage Program for the years 2010-11, tremendous increase in the No of SHGs maintaining 2011-12, 2012-13, 2013-14 savings a/c in the bank. All the years’ bank has • Firstly the table shows an increase trend in the SHG increased the SHGs that have maintained savings a/ Linked for the year 2010-11, 2011-12, 2012-13, 2013- c. The increasing trend for the years 2009-13 are 14, i.e, 104.4%,111%, 141.5%, 156%. This Shows 103%, 110.34%, 113.25% and 115.49%. This clearly that, the bank has involved in many SHG schemes shows that all the SHG believe in the savings a/c and has kept progressing year after year that is provided by the bank and they take most benefit of these facilities given by the bank. Hence • Secondly it can be seen that the number of there is an increase in the growth of savings a/c beneficiaries of SHGs schemes have also increased maintained by many SHGs. year after years by 104.8%, 111% , 118%, and 124%. This increase in the No. of beneficiaries has Scope & Limitations of the Study contributed much to the growth of the bank each year. This study is restricted to State Bank of India, the leading Banks on the other hand have concentrated on its Public sector Bank which is a pioneer in Micro finance objective of gaining more No. of beneficiaries every and ICICI Bank which is the Pioneer in Private Sector year. banks. • Thirdly the table and chart shows an increasing trend in the amount disbursed by SBI to SHGs. Every The data collected under the current study was basically year the bank has been able to disburse an enormous from the secondary sources as such the limitations of amount of loans which constitute the following secondary sources apply to this study. Banks are increase in the percentage for the year 2009-13 i.e. unwilling to disclose any information other than those 108.7%, 115%, 125% and 137.03%. This increasing that is published on their websites. Hence this study is trend in the loans disbursed to SHGs clearly states based on analysis of published reports only. that bank has been efficient in providing the loans Bibliography required to Its SHGs. Though the demand for the loans has been large, the bank was able to cope Books with its increased demand for loans by its SHGs. 1. V.S. Somanath Ph.D, “ MICRO FINANCE • Fourthly the table also shows the amount o/s by the REDIFINING THE FUTURE”, Excel Books Publisher, SHGs in repayment of its bank loans. The amount New Delhi, Ist Edition – 2009 o/s also shows the decreasing trend i.e. 92.84%, 2. Debudutta Kumar Panda, “UNDERSTANDING 96.01%, 95.03% and 87.11% for the years 2009-2013. MICRO FINANCE”, Wiley India Pvt. Ltd., New Delhi Here the banks have made effort to recover the loan – 2009. amount.

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3. Fisher Thomas and Sriram M.S. 2008. “BEYOND Journals MICROCREDIT, PUTTING DEVELOPMENT BACK 1. A. Saraswathy, S. Porkodi, M. Bhuveneswari, INTO MICRO-FINANCE”, Vistaar Publications, New “MICRO FINANCE IN KRISHNAGIRI DISTRICT: A Delhi. TOOL FOR POVERTY ALLEVATION.” Indian Journal Reports of Marketing, May 2009, Pg.47. 1. N. Srinivasan; “ MICRO FINANCE STATE OF THE 2. Saving Grace, SHG – Bank Linkage Program in SECTOR REPORT”, Sage Publications India Pvt. Andhra Bank – issue 13 Nov-2006. Ltd., - 2012 3. Dr. P. Loganathan, R. Ashokan. “INTER REGIONAL 2. NABARD; “STATUS OF MICRO FINANCE IN INDIA”, DEPARTMENT OF SHGS IN INDIA”, Gurushetra, 2011 – committed to Rural Proserity Mumbai. Sep- 2006. 3. CRISIL Rating; “ INDIA TOP 50 MICRO FINANCE 4. Sriram, M.S. and R.S. Upadhyayula, 2004. The INSTITUTIONS” – October 2009. transformation of the microfinance sector in India: experiences, options and future. Journal of Microfinance, 6(2): 89-112

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INFORMATION AND COMMUNICATION TECHNOLOGY & ITS IMPACT ON EDUCATION

Dr. Chandra Purkayastha1

The Promise of ICT in Education Traditional class teaching is increasingly under pressure. For developing countries ICTs have the potential for Information and communication technology, and in increasing access to and improving the relevance and particular the rise of the internet, is regarded as both a quality of education. It represents the possibility of cause and an enabler. The current young generation has providing quality education for a much larger universe of grown up with the internet. Traditional class teaching students than was hitherto possible. This is a game does not seem to fit very well with the learning style of changing development for poorer countries. these digital citizens. The aim of the new method is to decrease the gap between the learning environment and Information and communications technology (ICT) in the environment in which the pupils will later have to live education has been taken up by educators and and work. educational researchers since the 1980s with varied success. However, it is the relatively recent uses of the There are profound concerns now about the gaps opening Internet and World Wide Web that are stimulating new up between the ICT haves and have-nots, between those demands and expectations in education. ICTs cover who reinforce their access to, and use of, ICT in education Internet service provision, telecommunications by what they have and do at home, and those who enjoy equipment and services, information technology little of either. In India the gap between those who have equipment and services, media and broadcasting, access to and control of technology and those who do libraries and documentation centers, commercial not is significant. The reality of the Digital Divide—means information providers, network-based information services that the introduction and integration of ICTs at different levels and in various types of education will be a most Three implications are notable as a result of ICT in challenging undertaking. Failure to meet the challenge education. Firstly, the computer has become a would mean a further widening of the knowledge gap productivity and communication networking device and the deepening of existing economic and social beyond its uses as a standalone machine. Secondly, inequalities. the new trend towards cloud services from remote locations no longer requires the purchase and installation ICTs are potentially powerful tool for extending educational of desktop software productivity applications. Lastly, the opportunities, both formal and non-formal, to previously www as a platform for interactive communication is underserved users. The following benefits make ICT a changing the expectations of experienced and transformational tool. connected online users from a need to a demand model • Overcome time and space limitations: One defining of communication. feature of ICTs is their ability to transcend time and space. ICTs make possible learning characterized Information and Communication Technology (ICT) by a time lag between the delivery of instruction and presents the promise of providing better education to its reception by learners. Online course materials, more people more efficiently than can be accomplished for example, may be accessed 24 hours a day, 7 without technology. Spurred by these apparent promises, days a week. ICT-based educational content countries around the world have invested massively in dispenses with the need for all learners and the ICT education over the past decade. Despite the instructor to be in one physical location. investment, however, the world has been slow to obtain the pervasive changes in education that have been seen • Access to remote learning libraries. Teachers and in such industries as music, travel, and news. Thus at learners no longer have to rely solely on printed books the heart of this study is the question: what are the and other materials in physical media housed in key factors that determine ICT impact on libraries for their educational needs. With the Internet education? and the World Wide Web, a wealth of learning materials in almost every subject and in a variety of media can now be accessed from anywhere at

1 . HOD, Department of Economics, K. J. Somaiya College of Arts and Commerce, Mumbai, India.

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anytime of the day and by an unlimited number of The Library people. First, there is a world of difference between the One of the most commonly cited reasons for using “knowledge” society and the “information” society. It is ICTs in the classroom has been to better prepare the common to ‘google’ any query that a student might have. current generation of students for a workplace where The greatest contribution of ICT in education has been ICTs, particularly computers, the Internet and related the explosive growth in availability of information and technologies, are becoming more and more their easy retrieval. It must be remembered that ubiquitous. Technological literacy, or the ability to ‘knowledge’ and information’ are not the same thing. use ICTs effectively and efficiently, is thus seen as Thanks to ICT that place we remember as a ‘library’ has representing a competitive edge in an increasingly seen a profound change. globalizing job market. With the invention of Information and Communication ICTs and the Quality of Education Technology, libraries now use various types of Improving the quality of education and training is a critical technologies to aid the services they render. Everyday issue, particularly at a time of educational expansion. new technological advances affect the way information ICTs can enhance the quality of education in several is handled in libraries. The academic library has been ways: by increasing learner motivation and engagement, from its inception an integral part of institutions of higher by facilitating the acquisition of basic skills, and by learning. enhancing teacher training. Academic libraries are those libraries that are mainly • Motivating to learn: ICTs such as videos, television found in tertiary institutions. They are established to and multimedia computer software that combine text, support learning, teaching and research processes. The sound, and colourful, moving images can be used to introduction of various information technology (ICT) provide challenging and authentic content that will developments has lead to reorganization, change in work engage the student in the learning process. patterns, and demand for new skills, job retraining and • Facilitating the acquisition of basic skills: The reclassification positions. Technological advancement transmission of basic skills and concepts that are such as the electronic database, online services, CD- the foundation of higher order thinking skills and ROMs and introduction of internet has radically creativity can be facilitated by ICTs through drill and transformed access to information. ICT holds the key to practice. the success of modernizing information services. Applications of ICT are numerous but mainly it is used • Enhancing teacher training: ICTs have also been in converting the existing paper-print records in the entire used to improve access to and the quality of teacher process of storage, retrieval and dissemination to a training. digital form. ICTs and learner-centered environment ICT has impacted on every sphere of academic library Research has shown that the appropriate use of ICTs activity especially in the form of the library collection can catalyze the shift in both content and pedagogy development strategies, library building and connected that is at the center of education reform in the 21st libraries. ICT presents an opportunity to provide value- century. If designed and implemented properly, ICT- added information services and access to a variety of supported education can develop the skills to acquire digital based information resources to their clients. In lifelong learning framework. addition, academic libraries are also using modern ICTs Contemporary learning theory is based on the notion to automate their core functions, implement efficient and that learning is an active process of constructing effective library cooperation and resource sharing knowledge rather than acquiring knowledge and that networks. They are implementing management instruction is the process by which this knowledge information systems, developing institutional repositories construction is supported rather than a process of of digital local contents, and digital libraries: and initiate knowledge transmission ICT based capacity building programs for library users. Their customer relationship can be provided more When used appropriately, ICTs—especially computers efficiently and effectively using ICT. They offer convenient and Internet technologies— enable new ways of teaching time, place, cost effectiveness, faster and most-up-to- and learning. Creative use of the technology will allow date dissemination and end users involvement in the teachers and students to do what they have done before library and information services process. in a better way. These new ways of teaching and learning constitute a shift from a teacher-centered pedagogy, The emergence of internet as the largest repository of characterized by memorization and rote learning, to one information and knowledge has been revolutionary. There that is learner-centered. is a changed role of library and information science

Special Issue November 2015 Page 77 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 professionals from intermediary to facilitator. The Web, Intranets and networks – it seeks to create extinction of some conventional information services and interactive, individualized learning situations. emergence of new and innovation web based solutions Effectiveness, cost, equity, and sustainability are four means that ICT has changed the library for good. broad issues which must be addressed when considering • As a result of. ICT, modern education mobilizes tools the overall impact of the use of ICTs in education. The for examination, calculation and analysis of educational effectiveness of ICTs depends on how they information, thus providing a platform for student are used and for what purpose. And like any other inquiry, analysis and construction of new information. educational tool or mode of educational delivery, ICTs Learners therefore learn as they complete and, do not work for everyone, everywhere in the same way. whenever appropriate, work on real-life problems in- Learning with the technology means focusing on how depth. This makes learning less abstract and more the technology can be the means to learning outcomes relevant to the learner’s life situation. In this way, across the curriculum. It includes: and in contrast to memorization-based or rote learning, ICT-enhanced learning promotes increased • Presentation, demonstration, and the manipulation learner engagement. of data using productivity tools. • ICT turns learning into collaboration: ICT-supported • Use of curriculum-specific applications types such learning encourages interaction and cooperation as educational games, drill and practice, simulations, among students, teachers, and experts regardless tutorials, virtual laboratories, visualizations and of where they are. It models learning done throughout graphical representations of abstract concepts, the learner’s lifetime by expanding the learning space musical composition, and expert systems. to include not just peers but also mentors and experts • Use of information and resources on CD-ROM or from different fields. online such as encyclopedia, interactive maps and • ICT explores the creative abilities of the students: atlases, electronic journals and other references. ICT-supported learning promotes the manipulation of Technological literacy is required for learning with existing information and the creation of real-world technologies to be possible, implying a two-step process products rather than the repetition of known in which students learn about the technologies before information. they can actually use them to learn. • ICT makes it easier to consider different disciplines Changes in the Last Decades to understand an issue. ICT-enhanced learning It is difficult to quantify the degree to which ICTs have promotes an, integrative approach to teaching and helped expand access to basic education since most of learning. This approach eliminates the artificial the interventions for this purpose have been small-scale separation between the different disciplines and and under-reported between theory and practice that is the bane of the traditional classroom approach. Research suggests that the use of computers, the Internet, and related technologies, with adequate teacher The Challenge of Implementation training and support, facilitates the transformation of the Education policymakers and planners need to be clear learning environment into a learner-centered one. But about what educational results are being sought. These these studies are criticized for lacking in empirical rigor. broad goals should guide the choice of technologies to There is no strong evidence that this new learning be used and their modalities of use. Education, environment fosters improved learning outcomes. especially school education, is a matter of intense national cultural interest. Flourishing education The Sustainability of ICT-Enhanced Educational assessment mechanisms are largely based on Projects accountability to national, provincial/state or local When considering the alternative of building more bodies. There is an uneasy tension because of the physical infrastructure, the cost savings to be realized spread of global communications. There is a recognition from sharing resources ICT are attractive. The social of the key role of learning throughout the life span to price of not providing access to all, means ICT that meet a wide set of ambitious policy and personal enables teaching and learning appears to be a necessary objectives. And, for this to work, learning must be available alternative. in a much broader and more flexible manner than that One aspect of development programs that is often which can be squeezed into syllabuses in the first quarter neglected is sustainability. Many ICT based projects and of our lives. It can be just an addition to the text book- programs start with a bang but all too soon fade out with blackboard methods existing now. Increasingly, however, a whimper, to be quickly forgotten. In many instances, it is something different - through using the World Wide these projects are initiated by third party donors—such

Special Issue November 2015 Page 78 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 as international aid agencies or corporations—and not Technological sustainability involves choosing enough attention is paid to establishing a mechanism technology that will be effective over the long term. In a by which the educational institution or community rapidly changing technology environment, this becomes involved can pursue the project on its own or in partnership a particularly tricky issue as planners must contend with with other stakeholders after the initiating donor exits. the threat of technological obsolescence. But cost and financing are not the only barriers to Challenges in Integrating ICTs in Education sustainability Although valuable lessons may be learned from best It has been argued that the levels of cost support the practices around the world, there is no one formula for argument against putting computers in every classroom, determining the optimal level of ICT integration in the particularly in primary schools where there are no strong educational system. Significant challenges that curricular arguments for investment in computers. In stakeholders need to consider include educational policy secondary schools, spending money on computers may and planning, infrastructure, language and content, be justified by the curriculum but this will come with capacity building, and financing. In broader terms a strong significant increases in total school expenditure. direct relationship between the presence and use of ICT The costs of implementing an ICT system will include and educational performance as traditionally measured the following elements. was not found. That may be due to ineffective use of ICT or it may be that it will require some incubation time to Fixed Costs see the effects. However, while the direct influence of • Retrofitting of physical facilities the use of ICT on performance is limited, it is • Hardware and networking considerably stronger on attitude and confidence. • Software Attitude, in turn, has a positive correlation with • Upgrades and replacement (in about five years) performance, which was found in all reference countries. Using worldwide surveys of the educational performance Variable or Recurrent Costs of students, a statistical analysis led to the following • Professional development specific findings: • Connectivity, including Internet access and telephone • There is not a strong direct relationship between the time presence and use of ICT (either at home or at school) • Maintenance and support, including utilities and and educational performance. supplies • ICT use does have a positive relationship with student Obviously, these economies of scale may be achieved attitudes toward math and science. These attitudes, only in countries with large populations. in turn, contribute positively to performance. Another dimension of cost is who will pay for what. In • However, there is a negative relationship between the projects that involve computers connected to the Internet, use of computers at home and reading performance, either the school or student or both bear the variable presumably because computer use at home can be costs related to operations such as maintenance, for entertainment that takes time away from school Internet service charges, and telephone line charges. work. The sustainability of ICT-enabled programs has four • ICT availability contributes to the level of use, but components: social, policy, technological, and insufficient investment in soft infrastructure (teacher economic. skills and organizational changes) limits its impact. Economic sustainability refers to the ability of a school • The availability of ICT at home is positively related to and community to finance an ICT-enabled programme learning performance. Remarkably, though, the over the long term. intensity of ICT use at home is negatively related to learning performance. Social sustainability is a function of the different • stakeholders. The school is part of the community, and The most likely explanation is that ICT at home is for an ICT-enabled project to succeed the consent of used for entertainment, such as gaming. This might parents, political leaders, business leaders and other indicate that the time spent on ICT use for stakeholders is essential. entertainment purposes negatively impacts learning time for schoolwork. Policy sustainability refers to issues of policy and • Self-perceived performance on ICT skills has a positive leadership. One of the biggest threats to ICT-enabled relation to attitude toward science. This positive projects is resistance to change. If, for instance, teachers relationship is probably entirely due to self selection: refuse to use ICTs in their classrooms, then use of ICTs students who consider they to have advanced ICT can hardly take off

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skills generally also like sciences (i.e., the “nerd” Infrastructure-Related Challenges in ICT-Enhanced argument). Education • Computer use at home has a positive relation to Another basic requirement is the availability of electricity attitude toward science. The rationale behind this and telephony. In developing countries large areas are relation is, as it was for ICT skills, the “Nerd” still without a reliable supply of electricity and the nearest argument. This line of reasoning is strengthened by telephones are miles away. Experience in some the fact that computer use at home does not have a countries in Africa point to wireless technologies (such positive relation to attitude toward reading. as VSAT or Very Small Aperture Terminal) as possible • Parents’ intellectual background has a profound levers for leapfrogging. Although this is currently an positive relation to both performance and attitude extremely costly approach, other developing countries toward science. with very poor telecommunications infrastructure should study this option. • Time for subjects (that is, actual instruction time) in regular lessons has a positive impact on performance. Teachers: A point to highlight is the key role of teachers. This shows that traditional class teaching has a better How successfully ICT is used in education and how much impact on learning performance than newer teaching it does break the mould, depends so much on teachers. methods that don’t emphasize classroom teaching. The emerging generations of ICT use in education might • Physical teaching limitations have a negative relation well be described as “learner centered” but they can to the attitude toward science. The teaching equally be described as “teacher-intensive”, limitations as experienced by the teachers seem to Teacher professional development should have five have a negative effect on their teaching, and areas: consequently on the motivation of their students. 1) Skills with particular applications; • Attitude toward science and math has a negative 2) Integration into existing curricula; relation to attitude toward reading. Simply stated, 3) Curricular changes related to the use of IT (including students who like science and math dislike reading changes in instructional design); and the other way around. 4) Changes in teacher role Thus, indirectly, the use of ICT (both at home and at school) contributes to education performance. In one 5) Underpinning educational theories. particular case there was a direct relation between the Ideally, these should be addressed in pre-service teacher presence of computers at home and performance. This training and built on and enhanced in-service. Teachers argument is supported by the fact that whereas the should believe in the effectiveness of technology, availability of ICT at home is positively correlated to teachers should believe that the use of technology will performance, the use of ICT at home is negatively related. not cause any disturbances, and finally teachers should The latter can be explained by the fact that time spent believe that they have control over technology. Teaching on computers at home (for social or entertainment accreditation requirements include training in ICT use purposes) cannot be spent on school work. can be considered. ICTs are swiftly evolving technologies, However, the strength of the relationships found was however, and so even the most ICT fluent teachers need weaker than expected, and even weaker with regard to to continuously upgrade their skills and keep abreast of education. the latest developments and best practices. Yet when it comes to the impact of the use of ICT, it is Even if it turns out that actual savings are hard to make, positive for science and math but negative for reading. by working towards realizing the exciting potential of The contrast between science and math, on one hand, ICT, in combination with the other ingredients in good and reading on the other hand, is in fact so strong that a education, there should be an expectation of a clear strong negative correlation in the macro model (i.e., upward hike in the quality of teaching and learning. If across all countries) was found between attitude toward realized, this would represent value for money in a very science and math and attitude toward reading. In a similar real sense - genuine educational investment. This is vein, whereas the use of computers at home has a what we should be aiming for. positive relation to the attitude toward science and math Conclusion (and attitude on performance in science and math), it has a negative relation to reading performance. It should Quality in education through ICT and its appreciation be noted that the impact of ICT is notoriously hard to among stakeholders will have positive impact on the isolate from overall organizational changes. society. ICT can be employed in formal and non-formal types of education and would direct to make the learners employable and socially useful part of the society. By

Special Issue November 2015 Page 80 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 employing ICT in teacher training, the technology can Chandra, S. & Patkar, V. (2007), ‘ICTS: A catalyst for save a lot of money of the Government. Moreover a lot of enriching the learning process and library services in qualitative improvement can be seen as resource persons India’, The International Information & Library Review Vol. for the training can be accessed from any part of the 39, No. (1), Pp; 1-11. , world. By employing ICT in administrative functions IJPSS (2012) “ICT as a Change Agent for Education”. institutions can develop information systems that will Volume 2, Issue 6 ISSN: 2249-5894 evaluate and report developments as it occurs. Good http://www.ijmra.us 542 quality content is one of the major issues and directly affects the standards of education and quality Content Research Report “The Linked World” ‘How ICT Is development specific to the needs of the students can Transforming Societies, Cultures, and Economies.’ lead to a creative change in aligning the abilities of the www.conferenceboard.org students and the needs of society. There is a long way Sharmila Devi, Mohammad Rizwaan, Subhash to go to realize the potential of ICT but it promises to be Chander (2013) “Integrated approach to Technology a paradigm shift in the way education is rendered. in Education” (ITE) Sir Dorabji Tata Trust 2013 Syed Noor-Ul-Amin (2011) University of Kashmir “An References Effective use of ICT for Education and Learning by Alexander Tom (1999) TechKnowLogia, Knowledge Drawing on Worldwide Knowledge, Research, and Enterprise, Inc. “ICT in Education. Why Are We Experience Interested? What Is at Stake?”www.TechKnowLogia.org. Bhattacharya, I. & Sharma, K. (2007), ‘India in the knowledge economy – an electronic paradigm’, International Journal of Educational Management Vol. 21 No. 6, Pp. 543- 568.

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A STUDY ON IMPACT OF AGMARK STATUS IN CONSUMPTION PATTERN WITH SPECIAL REFERENCE TO TIRUNELVELI CITY

Dr. D. Janis Bibiyana1 S.Sarala lakshmi2

Abstract Agmark is the quality mark of Government of India, which is given to agricultural commodities. The agricultural produce act is permissive and the grading under the same has come to be known as ‘AGMARK’ Grading. The grade standards are based on both physical characteristics and internal attributes such as weight, size, shape, colour and material. This study aims to study the public awareness about AGMARK and to study the impact of AGMARK status in consumption. Well framed questionnaire was used to collect data from the customers. 150 sample respondents were selected from Tirunelveli city by convenient sampling technique. Hypotheses was framed and tested with chi-square test. 5 point Likert’s scaling technique and Percentage analysis also made to draw the meaningful inferences from the study. An analysis of the socio-economic distribution of the customers and Agmark item reveals that age, education, family size, income level of the respondents was not found to influence the level of satisfaction on the Agmark products. 63 respondents highly agreed with Agmark articles are course better than others and Agmark articles only sold at every shop. Key words: Consumer behavior, customer satisfaction, Quality control

Introduction analysis also made to draw the meaningful inferences The word Agmark denotes Agricultural marketing. Agmark from the study. is the quality mark of Government of India, which is given Hypotheses to agricultural commodities. This scheme was Ho: Socio-economic status of the sample respondents established by passing “The Agricultural produce Grading does not influence the level of satisfaction towards the and Marketing Act 1937”. This act defines standards of Agmark products. quality, fixing grade designations to indicate quality and prescribing grade designation marks with regard to Data analysis and Interpretation scheduled agricultural products. The act gave statutory Consumers’ quality preference towards the use of powers to the government of India to prescribe grade agricultural commodities may differ from person to standards for various agricultural commodities. The person. The socio-economic status of the sample agricultural produce act is permissive and the grading respondents may affect the usage of agricultural under the same has come to be known as ‘AGMARK’ commodities and their quality preference. Hence, socio- Grading. The grade standards are based on both physical economic status like age, educational qualification, size characteristics and internal attributes such as weight, of the family, and monthly income were analyzed. size, shape, colour and material. (Table -1) Objectives This study aims to study the public awareness about AGMARK and to study the impact of AGMARK status in consumption. Methodology To attain the objectives of the study data were collected from both primary and secondary source. Well framed questionnaire was used to collect data from the customers. 150 sample respondents were selected from Tirunelveli city by convenient sampling technique. Hypotheses was framed and tested with chi-square test. 5 point Likert’s scaling technique and Percentage

1. Assistant Professor in Commerce, St. John’s College, Palayamkottai. 2. Assistant professor in Department of BBA ST.XAVIER’S college, Palayamkottai

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Table - 1 : Socio-economic status of the sample respondents

Particulars No % particulars No % Age Family size (members) Below 30 years 33 22 1-2 11 7

30 – 40 years 45 30 3-4 79 53

40 – 50 years 42 28 5-6 48 32

Above 50 years 30 20 7-8 12 8 Income (monthly) Education

Below 20000 69 46 School level 45 30

20000 -30000 39 16 Under 42 28 Graduates 30000 -40000 25 17 Post Graduate 52 34

Above 40000 17 11 professional 12 8

Source: primary data Table 1 shows that a significant proportion of the respondents (30%) were of the age group 40-50years. Maximum respondents (46%) were earning below Rs.20000 per month. 53% respondent’s family size is 3-4. Most of the respondents were having education only up to school level.

Table - 2 : Qualitative response about Agmark products

Level of Qualitative Statement Sl. Particulars Total Highly Agreed No Less Highly No Agreed idea Agreed Less Agreed

1. Consumers are adviceto buy 27 57 24 27 15 150 Agmark articles only 2, Much importance should be 87 39 6 9 9 150 given to Agmark products 3 Awareness should be created to 75 45 9 12 9 150 consume Agmark articles. 4. Agmark articles only sold at 63 39 15 21 12 150 every shop. 5. Agmark articles are always high 48 69 15 9 9 150 in demand. 6. Agmark articles are course better 63 51 12 9 15 150 than others. 7. Many articles are being marketed 36 36 21 12 45 150 without Agmark label. 8. No qualitative difference exists 48 63 9 12 18 150 between Agmark and non- Agmark products.

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9. No price difference is observed. 15 12 9 36 78 150

10. Quality grading of articles not at 21 60 15 12 42 150 all necessary. 11. Quality grading increases the 12 6 18 12 102 150 cost of the product. 12. Quality of the product should be 105 24 6 9 6 150 certified genuine. 13. Agmark grading should be 18 21 15 36 60 150 insisted to all products. 14. Govt. has to direct sale of quality 39 69 15 9 18 150 products. 15. Standard quality measure is 51 60 15 9 15 150 needed. Total 709 651 204 234 453 2250 (32) (29) (9) (11) (20) (100) Source : Primary data. Table 2 reveals that majority of the customers know about Agmark products and using these articles. The figures in the parenthesis show the percentage to the total. Table - 3 : Computed Chi-Square Values

Particulars Chi-Square Values Result at 0.05 level

Calculated value Table value

Age 1.23 12.6 Accepted Education 1.25 12.6 Accepted Income 1.23 12.6 Accepted Family size 1.7 12.6 Accepted

Table 3 shows that calculated chi-square values are less than the table value 12.6 and hence, the Null hypothesis, Socio-economic status of the sample respondents do not influence the level of satisfaction towards the Agmark products is accepted at 5% level of significance. It implies that all the people like Agmark products irrespective of their socio economic background. Table - 4 : Customers’ Expectations

Expectations No. of Respondents Percentage Rank

Reduce Agmark products price. 113 75 2 Punish the adulterators. 98 65 3 More advertisement is necessary 78 53 5 Customer awareness program is 90 64 4 necessary.

Government must take efforts to grade 119 79 1 the product by accreditation.

Source : Primary data. Table 4 explains that mostly 119 out of 150 respondents expect that Government must take efforts to grade the product by accreditation as it ranked first. 113 out of 150 respondents expect to Reduce Agmark products price as

Special issue November 2015 Page 84 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 it ranked second. 65% of the respondents viewed that 4. Advertisement should be attractive and influencing. Punish the adulterators and was ranked third. 90 In addition, they should be more informative to the respondents being 64% felt that Customer awareness buyers. program is necessary. 5. Government should take efforts for Agmark products Therefore Agmark products are called upon to adhere to to be graded by accreditation. the various suggestions brought forth by the esteemed 6. More number of Agmark laboratories are to be respondents who alone will justify the Agmark products. introduced in Tirunelveli district. Finding An analysis of the socio-economic distribution of the Conclusion customers and Agmark item reveals the following fact: All respondents at Tirunelveli district are aware of Agmark a higher percentage of the respondents belong to the products. The Agmark certification can be extended to age group of 30-40. Majority of the respondents (34%) more number of products without much taxation. The are postgraduates. A large number of respondents (53%) Agmark may include accreditation. Though market have monthly income of below 20000. Majority of the economy minimized adulteration to some extent, Agmark respondents (46%) belong to the family size 2-4. certification is essential for all the agricultural products. However, age, education,, family size, income level of the respondents were not found to influence the level of References satisfaction on the Agmark products. 105 respondents • Acharya, S.S., & N.L.Agarwal., Agricultural Marketing out of 150 highly agreed with Quality of the product in India, Calcutta: Oxford & IBH Publishing Co. Pvt. should be certified genuine and 87 respondents highly Ltd., 1996. agreed with much importance should be given to Agmark • Murugarathinam, A., & T. Aranganathan., Agricultural products. 63 respondents highly agreed with Agmark Marketing Infrastructure in Tamilnadu, Kissan World, articles are course better than others and Agmark articles 33 (10):2006. only sold at every shop. • Raravikar.Y.G., Role of Agmark Products in our daily Suggestions life, Agricultural Marketing Golden Jubilee 1. Publicity campaign may be arranged by the Agmark Supplement, Government of India, 28 (4): 1986. authorities to know about Agmark status for • Tonapi. A.T., Agmark as an aid to Internal and Export agricultural products. trade, Agricultural Marketing Golden Jubilee 2. Meeting of the farmers must be periodically arranged Supplement, Government of India. to demonstrate the latest technology. 3. It is suggested that producers and sellers may sell the Agmark products at reasonable price to suit the needs of the middle income groups.

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DECODING THE YOUNG CONSUMERS – A LITERATURE REVIEW

Dr. Deepak Ashokkumar1

Abstract Human beings pass through different age groups as they grow up. During this process, they experience a plethora of physiological and psychological changes. In other words, human beings evolve in a dynamic manner as they progress through different stages in their lives. Among all the age related life stages, the young age can be very well considered as the turning point in anyone’s life. It is during this stage that people experience and undergo major transformation which goes on to influence their future life stages. So also an individual’s consumption oriented knowledge and skills begin to take a shape during the young age. The current paper attempts to conduct an exploratory study through literature review focusing upon young consumers.

Introduction and flexibility. Young consumers go in for the purchase of a variety of goods and services. The young consumer Youth are those individuals between the ages of 15 and group has an immense impact on marketers and 24 years (adopted from United Nations Habitat, 2012). retailers. This generation is known for their love for A significant percentage of youth population in India shopping (Taylor and Cosenza, 2002).The direct spending attains some sort of financial independence around the power of youth is estimated to be an astounding 1.3 age of 25 years. The youth who are less than 24 years trillion U.S. dollars (NAS, 2006). The immense love for old mostly depend upon their parents for financial shopping and the spending power act as perfect catalysts assistance. But the present youth segment of India, is that trigger these youngsters to purchase and consume unique in terms of its sheer size, consumption of a wide variety of products existing in the market. Majority products/services, intellectual ability, pester power, trend of spending is directed towards entertainment, travel and setting capability and positive attitude towards modern food. Young women go in for the purchase of cosmetics, technology. The young generation of the current era clothes, beauty products and jewellery whereas young considers shopping as an experience rather than a mere men prefer jeans, sports items, music gadgets and act of purchasing a product. Possessed with lesser motorcycles. They desire to hang out with their friends, commitments, the youth purchase or use products/ colleagues or relatives to enjoy the life. Among all the services at their will. Further, they are also capable of reference groups, friends have the most influence on influencing the consumption at even household level. youth. Parents also influence them up to some extent. Hence, the marketers and retailers operating in the The youngsters do not merely regard shopping as a country have a daunting task ahead of them in targeting simple act of purchasing. Rather shopping is considered and tracking a unique set of young consumers for their as a chain of activities comprising of socialization, products and services. discussion and gaining of knowledge regarding newly Until 12 years of age, the influence of parents over their launched products and brands, comparison of product children’s consumption is very high as they are in their features and price ranges and finally concluding the whole growing - up phase and can only request parents for the experience with the purchase of a particular product after products they want. intense scrutiny related to its price, features, utilitarian After this age comes a stressful period when a child and hedonic aspects. moves on to the stage of adolescence and experiences Youngsters exhibit their attachment towards materialistic rapid changes in terms of growth, relocation and self values and possession. They are self- conscious and discovery (Newcomb et al., 1981). This stage marks the are always in search of self – identity. The young development of cognitive and social dimensions within generation purchase those products and brands which the adolescents. The adolescents cross this phase and express them. They prefer those products which would they get into the stage of young adults who frame their ensure them acceptance among their friends and peers. own lifestyle. Young adults possess greater financial Digital media has offered a perfect platform for the young independence and gain competence in buying complex generation to connect with each other, thereby enabling consumer products. They are not burdened by this generation to explore the world. The preferences of commitments which in turn provide them greater freedom young consumers change so frequently that it makes it

1 . Assistant Professor, Department of Management studies, SNGCE

Special issue November 2015 Page 86 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 even more difficult to identify their needs. The youngsters goers of Kolkata, India based upon the values they felt are described as hard-to- please consumers (Tran, 2008). were important along with their activities, interests and Hard sales and traditional marketing strategies could opinions (AIO). The findings revealed five groups or be rendered ineffective in influencing the youth. All the clusters namely – Life loving Go- getters, politically above mentioned facts highlight the unique and conscious positivists, Independent minded, Destiny interesting characteristics of young consumers. Hence, believing pessimists and Happy go lucky dependents. there is a need for conducting continuous research works The marketers and retailers targeting young consumers focused upon the youth as such efforts would offer need to understand the motivational factors that drive guidelines to marketers and retailers in tailoring their this segment to go for shopping. Kaur and Singh (2007) marketing strategies to effectively target and serve this studied about the motives that drive young people to young consumers. shop in departmental stores or malls. The results of the Literature review study revealed that Indian youth primarily shop from a Studies on consumption behavior of youth hedonic perspective. They also viewed shopping as a means of diversion to alleviate depression or break the An understanding of consumption behavior of youth could monotony of daily routine. The youth were found to be provide insights for the organizations to target this serving as new product information seekers, and hence segment to market their products/services. Chen –Yu the authors suggested that retailing firms could directly and Seock (2002) studied the shopping frequency, frame and communicate the requisite product information expenditure, purchase motivations, information sources to them. and store selection criteria of American youth in purchase of cloth. Results revealed that for both genders, friends Penman and McNeill (2007) explored consumption habits were the most important information source and price of the young adults from New Zealand as they leave was the most important criterion for store selection. home and attain fiscal responsibilities. Results showed Significant differences were also found between genders. that young consumers exhibited a propensity towards When impulse and non impulse shoppers were large volumes of non-essential purchasing with a relaxed compared, significant differences were found in all the attitude towards debt and consumer purchasing. clothing behaviours examined in the study. Consumption of disposable goods such as fashion and entertainment items were seen as vital to leading a happy, Kim et al (2003) conducted a study to test whether and fulfilled life and the means by which these goods were how mall shopping motivations were related to loneliness accessed was of minor importance. Social pressure was and media usage among teen consumers. Mall intercept found to be the key driver of consumption choices in method was used to collect data from 531 teens in four this group with the majority of spending decisions made large shopping malls in the . It was found impulsively. out that mall shopping motivations consisted of five dimensions: service motivation, economic motivation, The consumer’s search for information has close diversion motivation, eating out motivation and social association with their shopping behaviour. Seock and motivation. The study suggested directions for marketers Bailey (2008) conducted a survey among U.S. college and educators to come up with positive programs to students to investigate their shopping orientations and provide social support for teens. examine the relationships between their shopping orientations and searches for information about and Beaudoin and Lachance (2006) attempted to understand purchases of apparel products online. The study the interest of youth from Canada in clothing brand names identified seven shopping orientation constructs namely: and to ascertain how different psychological, social and shopping enjoyment, brand/fashion consciousness, price socioeconomic variables explained variance in their brand consciousness, shopping confidence, convenience/time sensitivity. Findings of the study revealed that consciousness, in-home shopping tendency and brand/ susceptibility to peer influence, gender, fashion store loyalty. The results highlighted that participants’ innovativeness, consumer competence, self- esteem, shopping orientations were significantly related to their brand importance and age were significantly related to searches for information and purchases of apparel items brand sensitivity. The researchers reported that it was online. necessary to extend the investigation to more diverse geographic populations with different cultures. Youth of the present era is connected to the cyber world much more than ever. Gupta andGupta (2009) attempted Segmentation of consumers could enable the marketers to study the consumer behavior of urban Indian youth to formulate clear cut strategies to target different who use Internet for shopping. The study found out that segments in an effective manner. Goswami (2007) urban Indian youth is more an online surfer than an online investigated the psychographic segmentation of college-

Special issue November 2015 Page 87 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 shopper. The researchers noted that only a very small findings of the study revealed psychographic differences percentage of Indian youth has started appreciating the among the identified clusters. role of Internet in shopping. Research Gap: Chen Yu and Seock (2002) stated that Youngsters in the current scenario are increasingly going further studies with larger sample size of young in for branded products and services. They prefer brands consumers and random sampling techniques are needed which express them. Sahay and Sharma (2010)focused to provide consistent evidence of generalized findings. upon the brand relationships and switching behavior Beaudoin and Lachance (2006) called for future research amongst young consumers for highly used electronic works in evaluating the impact of advertising in media durable goods. The results indicated that young such as Television, magazines or the internet on brand consumers do form relationships with brand(s) on six sensitivity of young consumers. Goswami (2007) stated dimensions of consumer brand relationship namely – that despite of the importance of the youth segment in love and passion, self connection, interdependence, India as potential customers, this segment as a separate commitment, intimacy and brand partner quality. Peer area of study has not been adequately pursued. Seock influence was found to reduce the brand switching and Bailey (2008) reported that future studies should intentions. Interestingly family influence was found to focus upon young consumers from diverse geographical be higher than peer influence. While strong brand areas. Narang (2010) reported that further research can relationships reduce switching intentions; they did not be carried out to identify the products purchased by the reduce price comparisons owing to the price consciousness different psychographic segments of youth for their of Indian consumers. personal consumption and the frequency of such purchases. The author also indicated the scope for Phau. I and Woo. C (2008) investigated money attitudes researching the store selection criterion adopted by the and credit card usage between compulsive and non different psychographic clusters of the youth in order to compulsive buyers, of young Australians. They attempted formulate the store retail strategy. Sahay and Sharma to validate the money attitude scale (MAS) using (2010) called for the conduct of further research on youth Australian sample. Data were collected using a mall consumption behaviour across different product intercept method in a major shopping complex in Perth, categories. The authors also suggested to track the Western Australia. The study found out that compulsive influence of brand relationships on actual customer buyers were more likely to perceive money as a source purchase behavior. of power and prestige. They were also more frequent users of credit cards and were more likely to bargain Conclusion hunt. However, there were no differences between A report by Ernst and Young (2007-08) reveals that 54% compulsive and non-compulsive buyers for the of the Indians are aged below 25 years. According to dimensions of time retention, distrust and anxiety of the Narang (2010) India has the youngest population profile money attitude scale. in the world. The youth market is significant to Indian Dix S. et al. (2010) investigated how sports celebrities marketers and retailers due to its huge size and spending are perceived as role models and how they influenced power. Unlike in the western countries most of the Indian young adult consumers’ purchase and behavioral youth still depend on their parents while pursuing their intentions. The study also examined whether this education or they are single with an employed status in influence differed between males and females. It was private or Government organizations. In both the cases, found out that athlete role model endorsers have a positive it is found that the youngsters enjoy significant amounts influence on young adults’ product switching behavior, of disposable income either in the form of pocket money complaint behavior, positive word of mouth behavior and or in the form of salary. It should also be noted that brand loyalty. The study confirmed the assumption that these individuals are free from the burden of serious sports celebrities are important socialization agents and financial or family commitments unlike their older had significant impact on purchase intentions and counterparts. This lifestyle influences the consumption behaviours. The researchers called for further research pattern of these young consumers who are always on works focused upon more diverse and larger samples of the lookout for the enjoyment aspects of life. According young adults to advance the findings of their study. to Just India Generation study (2010), for 25% of the Indian youth, their favorite outdoor entertainment activity Narang R., (2010) conducted a study to understand the is hanging out with their friends. On the other hand 16% psychographic along with demographic variables of the of the youth like to visit their relatives/neighbors’, youth in India. Based on cluster analysis, four whereas 15 % of them enjoy spending their time psychographic clusters were identified: ‘Get- going watching movies at cinema hall and for 10% of the youth, Adopter’, ‘Inner value –oriented Conservative’, ‘Political eating out is their favorite outdoor entertainment. Much and Sport enthusiast’ and ‘Independent life lover’. The

Special issue November 2015 Page 88 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 of the retail boom in India could be attributed to the young • Calder, B.J., Philips L.W., and Tybout, A.(1981), consumers. Consumption of items like sports shoes, “Designing research for application”, Journal of apparel and cell phones are rising up because of them Consumer research, 8, pp197-207. (Ramaswamy and Namakumari, 2009). The young • Cavadini,C., Siega-Riz, A.M., and Popkin ,B.M. members within the family often influence family (2000), “US adolescent food intake trends from 1965 purchasing decisions (Turk and Norman, 1972). The to 1996”, Archives of Disease in Childhood, 83, pp youth consumer segment is a relatively more 18-24. homogeneous group when used as research subjects. • Chen-Yu J.H. and Seock Y-K. (2002), “Adolescents’ This is particularly helpful in minimizing random error clothing purchase motivations, information sources that might occur by using a heterogeneous sample such and store selection criteria: A comparison of male/ as the general public (Calder et al., 1981). The likelihood female and impulse/non impulse shoppers”, Family of error within the measurement model is inflated by and Consumer Sciences Research Journal, Vol.31, situational factors inherent in diverse samples (e.g. age, No.1, pp50-76. income and social class). This error is reduced when respondents are homogeneous across demographic and • Cowart K.O. and Goldsmith R.E. (2007), “The behavioural characteristics (Assael and Keon, 1982). influence of consumer decision-making styles on The youth are different from their predecessors with regard online apparel consumption by college students”, to attitudes, language, culture, lifestyle, orientation and International Journal of Consumer Studies, 31, pp 639- aspirations (Farris et al., 2002). The Indian youth 647. segment as a separate area of study has not been • Dabholkar, P.A., Thorpe, D.L. and Rentz, J.O. (1996), adequately pursued. Even though some market research “A measure of service quality for retail stores: Scale agencies do carry out surveys on the Indian youth, these development and validation”, Journal of the Academy are generally syndicated studies and the methodology, of Marketing Science, 24(1), pp 3-16 survey instrument or the technique of statistical analysis • Darden, W. and Ashton, D. (1974), “Psychographic is not available to academic research community (The profiles of patronage preference groups”, Journal of Marketing White book, 2005). Retailing, 50, pp99-112 References • Darian, J.C., and Cohen, C. (1995), “Segmenting by consumer time shortage”, Journal of Consumer • Akbay C., Tiryaki G.Y., and Gul A., (2007), “Consumer Marketing, Volume 12, Issue 1, pp 32-44 characteristics influencing fast food consumption in Turkey”, Food control, Vol.18, pp904-913 • Dittmar, H., Beattie, J., and Friese, S. (1995), “Gender Identity and Material Symbols: Objects and Decision • Akturan U., Tezcan N., and Vignolles A., (2011), Considerations in Impulse Purchases”, Journal of “Segmenting young adults through their consumption Economic Psychology, 16:3, 491-511. styles: a cross-cultural study”, Young Consumers, Vol.12,(4), pp348- 360 • Fan J.X. and Xiao J.J. (1998), “Consumer decision making styles of young adult Chinese”, The Journal • Anand R., (2011), “A Study of determinants impacting of Consumer Affairs, Vol.32, No.2, pp 275 consumers’ food choice with reference to the fast food consumption in India”, Society and Business • Farris R., F. Chong, and D.Danning (2002), Review,Vol.6, No.2, pp 176-187 “Generation Y: Purchasing power and implications for marketing”, Academy of Marketing Studies Journal • Bakewell C. and Mitchell V.W. (2004), “Male 6, No.2, pp 289-301 Consumer Decision-making styles”, International Review of Retail, Distribution and Consumer • Feltham, (1998) "Leaving home: brand purchase Research”, Vol.14, No. 2, pp 223-240. influences on young adults", Journal of Consumer Marketing, Vol. 15 Iss: 4, pp.372 - 385 • Bakewell C. and Mitchell V.W. (2006), “Male versus female consumer decision making”, Journal of • Fornell, C.,and Larkers, D.F.,(1981),“Evaluating Business Research, 59 , pp 1297-1300. structural equation models with unobservable variables and measurement error”, Journal of • Bauer Hans H., Nicola E. Sauer and Christine Becker Marketing Research, 18, pp 39-50 (2006), “Investigating the relationship between product involvement and consumer decision making • Hafstrom J.L., Chae J.S. and Chung Y.S. (1992), styles”, Journal of Consumer Behaviour, 5, pp342-354 “Consumer decision-making styles: Comparison between United States and Korean young • Beaudoin P. and Lachance M.J., (2006), “Determinants consumers”, Vol.26, No.1, pp146-158 of Adolescents’ brand sensitivity to clothing”, Family and consumer research journal, Vol.34, No.4, pp312- 331

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• Hahn K.H.Y and Kean .R (2009), “The influence of • Kavkani S.A.M., Seyedjavadain S., and self-construals on young Korean consumers’ decision Saadeghvaziri (2011), “Decision making styles of making styles”, Journal of Fashion marketing and young Iranian consumers”, Business Strategy Series, Management, Vol.13, No.1, pp 6-19. Vol.12 (5), pp235-241 • Hanzaee K.H and Aghasibeig S. (2010), “Iranian • Laroche, M., Ueltschy, L.C., Abe, S., Cleveland, M. generation Y female market segmentation”, Journal and Yannopoulos, P.P. (2004), “Service quality of Islamic Marketing, Vol.1, No.2, 2010, pp165-176 perceptions and customer satisfaction: evaluating the • Kara, A., Kaynak, E. and Kucukemiroglu, O. (1997), role of culture”, Journal of International Marketing, “Marketing strategies for fast-food restaurants: a Vol. 12 No. 3, pp. 58-85. customer view”, International Journal of Contemporary • Lastovicka, J. (1982), “On the validation of lifestyle Hospitality Management, Vol. 7, No.4, pp16-22 traits: a review and illustration”, Journal of Marketing • Kaur P., and Singh R. (2007), “Uncovering retail Research, 19, pp 126-38 shopping motives of Indian youth”, Young Consumers, • Lawshe, C.H. (1975), a quantitative approach to Vol.8 (2), pp 128-138 content validity. Personnel Psychology, 28: 563–575

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STRATEGIC STUDY OF THE EFFECTS OF PERCEIVED RISKS AND BENEFITS OF SHOPPING

Dr. Hari Sundar.G1 Dr.D. Sudha Rani Ravindran2 Mr. Ramakrishnan3

Abstract This study investigates the role of perceived risks and benefits in influencing the consumer's purchase decision process during online shopping in UK and India. The purpose of this research is 1) to examine the relationship between consumer's beliefs (British and Indian) regarding online shopping risks and benefits and their attitude towards online purchase of products, 2) to study the relationship between consumers attitude and intention of online purchase of products, and 3) to explore differences between British and Indian consumers in terms of the perceived benefits and risks towards online shopping. The study revealed support for the significant relationships for both Indian and British consumers between perceived risks and benefits and attitude towards online shopping. Significant differences in perceived risks and benefits associated with Internet shopping between Indian and British consumers were also observed. While Indian consumers perceived more risks than British consumers the benefits of Internet shopping perceived by Indians were found to be significantly less. Key words: Words: Risks, Benefits, British, Indian, Online Shopping, Attitude.

Introduction Background Internet as one of the most successful innovations has In spite of the considerable and optimistic growth of online shown tremendous growth in both its applications and shopping, the use of Internet for shopping is a widely number of users. Its unique characteristics of flexibility, varied phenomenon. While the online shopping is interactivity, and personalization have provided enormous booming in the western world especially in countries opportunities for innovative business strategies. One like UK, USA, it has not seen such a growth in countries unique and revolutionary transformation brought forward like China, India etc. The US is the leading e-commerce by the Internet, “online shopping “, has become a source economy with online sales of $176.2 billion which are of increasing competition to the traditional shopping expected to reach $278.9 billion in 2015 (Mulpuru, 2011). channels, such as retail stores, mail stores catalogues In Europe the number of online buyers is expected to especially those associated with product areas of books grow from 157 million to 205 million and total sales all and music. forecasted to reach $190 billion by 2015. While people Online shopping has cannibalized into the in-store in countries like Korea spend more time online and China shopping as consumers are becoming more familiar with has the most number of online users, China's online online shopping and in many cases are giving preference market however stood only at $49 million in 2010 to online shopping(“Malls going to walls”, 2010). While (Wigder,2010). the traditional “brick and mortar” stores have the The major reason for people not adopting online shopping drawbacks of limited time and space where the has been connected with the perceived risks which people customers need to reach the product, the Internet has associate with it (Bhatnagar et al., 2000; Forsythe et decreased the time and efforts consumer spend in al., 2006; Torkzadeh and Dillion, 2002), while the shopping, by providing a concept of boundary-less stores significant benefits which online shopping medium offers, where the product reaches the consumers (Bhatnagar, which are not available in traditional shopping have been Misra and Rao, 2000). Further Internet makes an attributed towards adoption of online shopping medium unlimited range of products and services available to the (Alba, Weitz. Janiszewski, Lutz and Wood, 1997; consumers (Bhatnagar and Ghose, 2004, Forsythe and Bhatnagar and hose. 2004; Bhatnagar et al., 2006, Shi, 2003) and people can buy and sell anything, Forsythe and Shi, 2003; Hoffman and Novak, 1996). anywhere at any time. Majority of researches on online shopping behavior have For this reason Saimee (2001) declared Internet to be explored the role of perceived risks and benefits at the “one of the most significant and perhaps the greatest individual level but very few studies have been conducted marketing tools for the global marketing place”. at country level. Some of the early researchers found

1. Associate Professor- SNGCE, Kolenchery, Kerala 2. PSG IM, Coimbatore. 3. Doctoral Scholar, Michigan University

Special issue November 2015 Page 91 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 that Internet users throughout world are similar (Quelch and Grady, 1997; Lee, Park, and Ahn, 2001). Financial and Klein, 1996) and perceive similar benefits and risks risk is more commonly associated with Internet toward online shopping, but later studies have shopping than with in-store shopping (Bhatnagar et al., increasingly pointed out to differences in perceived 2000) because credit card fraud is a major concern to benefits and risks, Internet innovativeness across different online consumers (Lee et al., 2001). Researchers also countries (Park and Jun, 2003). Nonetheless, a cross have attributed financial risk associated with online country research on perceived risks and benefits of online shopping to the lack of trust in the retailer and fear of shopping behavior has been an underdeveloped field of purchasing wrong products by mistake, not receiving study the purchased product and credit card being overcharged (Forsythe et al., 2006). In this study UK was selected for a comparative analysis with India because enormous differences in e-commerce Financial risk may, however, be reduced with increased figures between the two countries provide a critical shopping experience on the Internet as the consumer environment to do a cross-country study. In UK e-retailing acquires more knowledge about the e-retailer (Bhatnagar has shown tremendous growth with Internet sales being et al., 2000). Product performance risk in context of expected to grow year on year basis by 6% over the online shopping has been associated with the risk that coming six years and online sector expected to break $ the product may not function as expected (Bhatnagar et 92 billion mark in 2014 (Thomson, 2009), however in al, 2000; Jarvenpaa and Todd, 1997; Tan, 1999; India with its 60 million users of Internet -which however Vijayasarthy and Jones 2000; Forsythe et al 2006; represents only 12% of the population, e-commerce Torkzadeh and Dillion, 2002) and the feeling of not being figure stands out just $ 51 million as against the total able to return the product if it fails to meet the expected retail industry of $410 million. parameters (Jarvenpaa and Todd. 199”. Vijayasarthy and Jones, 2000). The issue of not being able to touch and As it is estimated India would have the third largest feel the product (Bhatnagar et al 2000: Forsythe et al, number of Internet users by 2013 (Times of India, 2010), 2006; Torkzadeh and Dillion. 2002) and physically not it becomes more important for marketers and businesses being able to examine the product increases the risks. to find out whether the perceived benefits and risks The level of product performance risks have been identified associated with online shopping are same which people with the type of objects; where books and software which associate with online shopping in countries like UK. As are more standardized are associated as low risks e-commerce offers one of the biggest channels for doing products (Bhatnagar et al, 2000) products like fashion business in future, it is imperative that both national and goods; where touch and feel are considered important international marketers and businesses must have a before purchase are considered as high risks. The complete understanding of the factors which will apprehensions of the consumer in sharing his personal encourage online shopping by the Indian consumers information and credit card information while shopping Literature Review online has been classified as privacy and security risk. Perceived Risks The possibility of credit card fraud is one of the common risks associated with online shopping (Bhatnagar et al., Internet stores are free from physical boundaries and 2000; Jarvenpaa and Todd, 1997; Vijayasarthy and Jones, allow consumers to shop from remote locations 2000). The fear of misuse of personal information (Bhatnagar et al, 2000), however people are apprehensive (Jarvenpaa and Todd, 1996) or the apprehension of of buying on the Internet due to perceived risks personal information being passed on to third parties by associated with online shopping (Bhatnagar et al, 2000; the shopping websites, risks of card details being stolen Fram and Grandy, 1997). Researchers have identified during the transaction (Lim, 2003) add to the perceived various risks associated with online shopping behavior: risks of online shopping. The loss of time and financial, product performance, psychological, physical inconvenience faced by consumer in navigating and and time/ convenience loss. Furthermore components browsing for placing an order and/ or find appropriate such as privacy and security loss risk (Jarvenpaa and websites or loss of time because of slow download speed Todd, 1996; Vijayasarthy, 2004) and source risk of WebPages (Forsythe et al., 2006) has been identified (Torkzadeh and Dillion, 2002) have been associated with as one of the risks associated with online shopping. online shopping. A table of comparison of prior studies Apprehensions of possible delays in the delivery of associated with perceived risks associated with online purchased items from online store are a concern for line shopping is given in Table 1. some online shoppers. Time loss has also been related Financial risk in online context is related to the risk of with time lost in returning and exchanging goods which losing money in online transactions by providing credit do not meet expectation or do not fulfill desired criteria card or bank account information over the Internet (Fram or have been delivered which don't match the

Special issue November 2015 Page 92 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 specifications of the products ordered. The perceived psychological risk in the online context has been referred to disappointment frustration and shame experienced if one's personal information is disclosed (Forsythe and Shi, 2003). The frustration of answering questions like filling of personal information which websites ask for prior to completion of transaction increases the psychological risks. Perceived psychological risk reflects concern about the psychological discomfort and tension that may arise because of making a transaction (Hassan et al., 2006). The more difficult to find the identity of the trader and that reputable vendors are more likely to commit good behavior and hence tend to reduce the perceived source risks (Resnick et al., 2000). Reputation signals the trustworthiness of the seller and consumer sees lesser of risks of buying products from those websites which are reputable (Resnick et al., 2000). A positive reputation is inferred as the trustworthiness of the selling party. Table - 1 : Dimensions of Perceived Risk in the Literature

Risk Conceptual Definition Traditional Shopping Online Shopping Context Context Financial Risk Risk related to loss of Derbaix (1983); Horton Lee, Park and Ahn (2001); Fram and money (1916) Grady (1997); Forsthye and Shi (2003); Torkzadeh and Dillion (2002); Sweeney, Soutor, and Johnson (1999)

Product Risk related to the Festervand, Synder, Simpson and Lakner (1993); Fram Performance Risk fundamental as pect of the Tsalikis (1986); Horton and Grady (1997); Torkzadeh and product (1976); Jacoby and Dillion Kaplan (1972); Spence, (2002); Forsythe et al. (2006) En-gel, Black well (1970)

Psychological risk Risk related to the Jacoby and Kaplan dissatisfaction ad mental (1972) stress caused due to purchase

Time loss risk Risk related time-lost in the RoseIius(1971); Forsythe et al. (2006); forsythe and buying or retaining the McClorke (1990) Shi (2003) product Privacy Security risk Risk related to the credit Benassi 1999); Bhatnagar et al. card and personal (2000); Miyazaki and Frenandez information being stolen (2001); Ja-vemppa and Todd (1996); Vijayasarthy (2004)

Source risk Risk related to the Torkzadeh and Dillion (20G2) existence of the

Perceived Benefits convenience due to the time and effort saved by shopping In contrast to offline/ physical shopping, Internet from one's own place rather than visiting physical stores shopping represents relative new way of shopping. Alba has been suggested by various researchers (Bhatnagar et al. (1997) classified access to selection as one of and Ghosh, 2004; Forsythe et al, 2006; Eastlick and the primary motivations/ benefits consumers associate Feinberg, 1999) as perceived benefits of online shopping. with online shopping. Convenience, information, Online shopping is also associated with hassle-free customization, (Ghosh, 1998) and time efficiency shopping i.e. it helps consumers at their convenience (Morganoskyand Cude, 2000; Verhoef and Langerak, without any shame for not buying anything and just 2001) have been identified as the primary factors of online browsing the products (Forsythe et al, 2006). Further shopping. While Keeney (1999) identified ten online shopping has been related to low cost and savings, fundamental values of motivation for shopping online out as consumers are able to get same quality products at of which nine were related to utilization motives, very a lower cost due to the cost saved on rent, store few researches have been done to identify hedonic installation, decoration which are generally borne by the motivation in online shopping. owners of the retail stores and are passed on to the consumers (Miller, 2000). While Internet shopping provides service which is not limited by time, space, and weather (Burke, 1997), Online shopping enables consumers to acquire large amount of information about product specifications,

Special issue November 2015 Page 93 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 stores, promotion etc. (Wolfinbarger and Gilly, 2001). Online shopping empowers consumers to access review and use the information in an easy and effortless manner when compared with traditional "brick and mortar" retail stores (Alba et al, 1997; Lynch and Ariely, 2000). Consumers can receive abundant information from the website directly rather than from the salesperson (Van den Poel and Leunis 1999) with a few clicks of the mouse. The hedonic motive to seek pleasure and enjoyment by experiencing new things while shopping online (Forsythe et al., 2006) has also been associated with benefits of online shopping. As consumers browse through the wide variety of products on the Internet, they can also obtain competitive prices on merchandise and eye-catching promotional deals (Jarvenppa and Todd, 1996). Online shopping provides consumers with the flexibility to select and evaluate merchandise across stores. The broad selection of products from different brands and retailers with detailed information available may be viewed as a significant benefit of online shopping helping the consumer's decision-making, which is likely to provide an important motive for online shopping (Forsythe et al., 2006; Menon and Kahn, 1995). Research Hypothesis and Questions The Theory of Reasoned Action (TRA) (Ajzen and Fishbein, 1980) serves as the theoretical framework of this study. In the present study, the belief-attitude-behavioural intention link postulated by TRA was used to predict both Indian and British consumer's attitude and purchase intention towards online purchase through their beliefs regarding risks and benefits they hold in their mind. According to the theoretical framework presented in Figure 1, consumer's beliefs such as their perceived risks and benefits associated with online apparel shopping are conceptualized as possible antecedents of the consumer's attitude towards purchasing products online, which in turn determines their online purchase intentions for products. Therefore, based on this conceptual framework, the following hypotheses were developed. HI : Perceived risks are negatively related to attitude towards online shopping of consumers (India and UK). H2 : Perceived benefits are positively related to attitude towards online shopping of consumers (India and UK). H3 : Attitude towards online shopping is related to consumer's (India and UK) online buying intention. Lastly the research focused on bringing out differences in perceived risks and benefits towards online shopping. For this part the following exploratory research question was developed. RQ1: Are there any significant differences in perceived risks, benefits towards online shopping between Indian and British consumers? Research Methodology

Belief Attitude Intension

Perceived risk of online shopping H1

Attitude towards Online purchase online shopping H3 intension of products Perceived benefit of online shopping

H1

N.B Each of die hypothesis and research question was tested separately for UK. and Indian consumers. RQI not

N.B Each of die hypothesis and research question was tested separately for UK. and Indian consumers. RQI not included in this figure. RQ1 addressed the differences between perceived risks and benefits of UK and Indian online shoppers (based on TRA. Ajzen and Fishbein. 1980) Both online and mail based survey methods were used for data collection The guidelines for conducting the survey were adapted from Dillman (2000) and for UK data, a self administered questionnaire was distributed among 200

Special issue November 2015 Page 94 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 shoppers at supermarkets like Asda. Sainsbury, Aldi, Favourable”and an incomplete sentence”,/buying Taj located in Brighton. An online survey link was also products from the Internet”, which were adopted from created and the link was mailed to people known to the items used to measure attitude construct by Anand and researcher. Sternthal (1990), Gill, Gossbarth and Laczniak( 1998), Holbrook and Batra (1987) and MacKenzie and Lutz For collecting data in India an online questionnaire was (1988). Further intention of buying through Internet was developed and an e-mail was sent to 200 respondents also measured using five point semantic differentials item known to researcher, asking them to visit online site consisting of three bi-polar descriptive: “Unlikely –Likely”. (www.qualtrics.com). Prior to collection of data a pilot “Improbable-Probable” and “Impossible –Possible”. The study was conducted to test and identify any flaws in bipolar descriptors were adopted from existing literature the survey format and to ensure validity and reliability of used to measure purchase intension such as measures. A convenience sample size of 15 friends, who Chattopadhyay and Basu (1990); Lim. Darley and had access to the Internet and had used Internet for Summers (1994); MacKenzie, Lutz and Belch (1986). online shopping, was used for UK and India. On the basis As with the existing literature a higher point indicated a of feedback the necessary correction and refinement of more positive response. the questionnaire were done. The last section consisted of demographic information Questionnaire Design with items such as gender, age, occupation, and country For the study, a self administered questionnaire was of residence. designed, using scales developed from previous researches (Appendix A.l). The questionnaire consisted Data Source of six parts; the first part was related to people's familiarity For UK based survey 93 of the distributed questionnaires with use of Internet while the second and third sections were returned while 15 responses were collected online. related to the perceived risks and benefits of online Among the 93 returned questionnaires 4 were excluded shopping. The fourth and the last section addressed the from data analysis as 80% of the questions in them attitude, purchase intention, and demographic were unanswered. Thus an overall 104 usable responses parameters of the respondents respectively. were collected by means of both mail survey and online link. UK sample consisted of 45.7 % males and 52.4% The first section included general questions related to females. 28.6% of the respondents in age group 16-25 length of Internet use, duration of Internet usage, and yrs formed the largest group. Similarly 30.8% of the purpose of using Internet. The second section of the respondents were working full time and represented the questionnaire was related to risks perceived with online biggest category. shopping behavior and 15 items were used from existing literature such as Forsythe et al. (2006) and Torkzadeh An overwhelming 88.5 % respondents had been using and Dillion (2002). The items consisted of constructs Internet for more than 5 years whereas most of the such as financial risks, example “My credit card number respondents where using Internet for more than 5 hours may not be secure”, time/convenience risk, example “It's per week. difficult to find out appropriate website", and product risk, Amongst the respondents checking e-mail was the most example”/ am not able to touch and feel the item”. The frequent reason for using the Internet while 82.7 % of items were again rated on a 5 point Linker Scale with 1 the respondents had shopped online. being strongly disagree and 5 strongly agree. For India based survey 110 people responded by filling For benefits related to online shopping items from existing up the online survey set up on www.qualtrics.com. literature, Forsythe et al. (2006) and Ramus and Nielsen Among the 110 responses 13 were excluded from the (2005) were used. The items addressed construct of data as around 80% of the data was missing in them. online shopping benefits such as, shopping convenience, The sample consisted of 64.9 % males and 27.8 % example”/ can shop in the privacy of my home”. Product females, 54.6% of the respondents were working full time selection, “Items from everywhere are available”, ease/ and represented the biggest group in income category. comfort of shopping example “I won t be embarrassed 88.5% respondents had been using Internet for more even if I don't buy" and hedonic/enjoyment example than 5 years, while 82.5% of the respondents where “Internet shops make shopping fun” were used. using Internet for more than 5 hours per week. While In the third section attitude towards buying products checking e-mail was the most frequent reason for using online was measured using 5 point semantic differential the Internet with 94.8% of the respondents agreeing with scale consisting of three pairs of bipolar descriptive “Bad- the statement, only 47.4% of the sample surveyed had Good”, “Unpleasant-Pleasant”,“Unfavourable- shopped online.

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Results As perceived risks and benefits have multiple dimensions, a multiple regression was performed for testing hypothesis HI and H2 whereas attitude towards online shopping and innovativeness had only one dimension and hence a simple regression was performed for H3. Ore way analysis of variance (ANOVA) was used for RQ1 to find out whether any significant difference exists between perceived benefits and risks towards online shopping between British and Indian consumers. Construct Validity and Reliability To test the reliability and dimensionality of the perceived benefits and risks, exploratory factory analysis and internal consistency tests were employed for both samples sets of data separately. The factor analysis for both sets of data produced four factors for perceived benefits (Shopping convenience, Product selection, Ease and Comfort and Hedonic/Enjoyment benefit) solution for both the data sets .Owing to high cross loading 4 items out of the 19 items were eliminated (“I can find special products not available elsewhere” and “I won't be embarrassed even if I don't buy”, “It is exciting to receive a package” and “I can try new experience”). Internal consistency of the factor was also calculated as shown in Table 2 a and b. Similarly exploratory factor analysis for both sample sets produced 4 factor (time convenience/ financial/ privacy/ product and channel risks) solution for both data sets, as 4 items out of the 19 items were eliminated owing to high cross loading across multiple factors (I can’t trust the online company. I may purchase something by accident. I might be overcharged. It is difficult to return the product.) Each factor was examined for mutual consistency and mean scores were calculated for each factor as shown in Table 3 a and b. Hypothesis Testing The relationships proposed in the hypotheses and research questions were tested by performing a series of regression analysis to identify and explain independent variables variances on the dependent variable. Table - 2a : Factor Analysis for Perceived Benefits (UK Sample)

Factors Items Shopping Product Ease and Hedonic/ Convenience Selection Comfort Enjoyment a = 0.86 a = 0.80 a = 0.82 a = 0.71 M = 4.2I M = 4.01 M = 3.88 M = 2.82 I don't have to leave home .897 1 can shop whenever I want .856 I can shop in privacy of home .823 I can save the effort of visiting stores .656 1 can avoid the hassle of driving and parking .610 Items from everywhere are available .757 I can get good product information online .752 1 can get a broader selection of products .712 1 can access many brands and retailers .681 1 don't have to wait to be served .739 1 don't get any busy signal .529 .633 I don't have to deal with pushy salesperson on Internet .492 .620 Internet shops make shopping fun .806 I can buy in impulse in response to ads -.460 .796 I can custom-design product. .756

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Table - 2b : Factor Analysis for Perceived Benefits (India Sample)

Items Factors Shopping Product Hedonic Ease and Convenience Selection benefit a Comfort a =0.885 a=0.82 =0.78 a=0.81 M=3.75 M=3.58 M=i.20 M=3.61 I don't have to leave home. .827 (B)I can shop in privacy of home. .796 I can save the effort of visiting stores. .795 I can avoid the hassle of driving and parking. .754 I can shop whenever I want .721 .426 I can get good product information online. .796 I can get a broader selection of products. .774 I can access many brands and retailers. .750 Items from everywhere are available. .717 I can buy in impulse in response to ads. .816 Internet shops make shopping fun. .799 I can custom-design products. .758 I don’t get any busy signal .874 I don’t have to deal with busy salesperson on Internet .743 I don’t have to wait to be served .431

Figure - 2 : Regression Results for UK Respondents (Perceived Risks, Benefits, Attitude and Purchase Intensiona)

Time/Conv Chanel Risk Finan/Privacy Product Risk Risk Risk

-0.43***

Attitude 0.63**** Purchase Intension *

0.22* 0.21*

***p < 0.001 Ease/Comfort Product Select Convenient Hedonic ** p < 0.01 Benefit Benefit Medium Benefit *< 0.05

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Table - 3a : Factor Analysis for Perceived Risks (UK Sample)

Factors

Time/Conve Financial/Pri Product Channel Risk Items nience Risk vacy Risk risk a =0.70 a=0.83 a =0.71 a =0.73 M=3.6S M=2.26 M=2.90 M=4.13

It is too complicated to place order .890

It is difficult to find appropriate websites .834

Pictures take too long to come up .676

I may not get the product .856

I may not get what I want. .736

My credit card number may not be secure .614 .406

My personal information may not be kept .380

I can't examine the actual product. .867

I am not able to touch and feel the item .809

I must pay for shopping and handling .837

I must wait for merchandise to be delivered. .831

Table - 3b : Factor Analysis for Perceived Risks (India Sample)

Items Factors Financial/pri Time/conveni Product Channel risk a vacy risk ence risk risk =0.73 M=3.S a =0.81 a =0.76 a =0.90 M=3.31 M=2.S4 M=4.14

My credit card number may not be secure. .837

My personal information may not be kept. .741

(R)I may not get the product .736

1 may not get what I want. .699

It is too complicated to place order .828

It is difficult to find appropriate websites. .819

Pictures take too long to come up. .755

I am not able to touch and feel the item. .928

I can't examine the actual product .883

I must wait for merchandise to be delivered. .872

I must pay for shopping and handling. .852

H1 : Perceived risks are negatively related to attitude towards online shopping of consumers. A multiple regression showed a partial direct influence of perceived risks and attitude towards online shopping for both UK (R2 = 0.242. p <0.001) and Indian sample (R2 = 0.09 p <0.01). Financial/privacy risk showed a negative

Special issue November 2015 Page 98 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 influence on attitude for both the UK (B = -0.431, t = -4.878, p < 0.001) and Indian sample (P = -0.28, t= -2.86, p < 0.01)as shown in Table 4 a and b. Table - 4(a) : Influence of Perceived Risks on Attitude towards on Line Shopping (UK)

Standardized Model B Unstandardized Coefficients rSig. Coefficients Std. Error Beta

1 (CONSTANT) -.017 .088 -.191 .849

TIME CONVENIENCE RISK -.162 .090 -.160 -1.804 .074

FINANCIAL PRIVACY RISK -.429 .088 -.431 -4.878 .000

PRODUCT RISK -.076 .088 -.076 -.856 .394

CHANNEL RISK .167 .091 .163 1.839 .069

DEPENDENT VARIABLE:ATTITUDE R2 = 0.242, P = 0.000

Table - 4(b) : Influence of Perceived Risks on Attitude Towards on Line Shopping (India)

Model B Unstandardized Coefficients Standardized tSig. Coefficients Std Error Beta

1(CONSTANT) -.016 .100 -.163 .871 -.285 -.289 -2.862 .005 FINANCIAL PRIVACY RISK .100

-.183 -.182 -1.800 .075 TIME CONVENIENCE RISK .102

PRODUCT RISK -.136 -.136 -1.349 .181 .101

CHANNEL RISK .030 .030 .295 .769 .101

2 DEPENDENT VARIABLE: ATTITUDE R = 0.09, P =0.01

H2 : Perceived benefits are positively related to attitude towards online shopping of consumer. The results of multiple regression analysis (R2 = 0.34, p < 0.001)support that all perceived benefits of online shopping: Shopping/convenience benefit (r = 0.22, p =0.01), Product selection benefit (r = 0.37, p = 0.01), Ease/ Comfort benefit (r = 0.235, p = 0.05) and Hedonic benefit (r = 0.306, p = 0.01) are positively related to attitude towards online shopping for the UK sample while for the Indian sample perceived benefit on attitude towards online shopping was partially supported (R2 = 0.10, p < 0.05) and only Shopping convenience (β= 0.22, p < 0.05) and Hedonic benefits β= 0.22, p < 0.05) showed positive influence on attitude towards online shopping. (Table 5 a and b).

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Table - 5a : influence of Perceived Benefits on Attitude towards on Line Shopping (UK)

Table - 5b : Influence of Perceived Benefits on Attitude towards on Line Shopping (India)

H3 : Consumer's positive attitude towards online shopping can lead to online buying intention of products. Both British (β = 0.63, R2 =0.04, p <0.001) and Indian consumer's (β = 0.646, R2 = 0.417, p < 0.01) attitude towards online shopping as predicator of their intention to purchase online was supported as shown in Table 6 a and b. Table - 6a : Relationship between Attitude and Online Buying Intension (UK)

Model B Un-standardized Coefficients Standardized t Sig. Coefficients Std. Error Beta

.000 1.000 1 (Constant) .000 .076

attitude .635 .077 .635 8.265 .000

Dependent Variable: Buying intension R 2 = 0.403, p = 0.000

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Table - 6b : Relationship between Attitude and Online buying Intension (India)

Model B Un- standardized Coefficients Standardized tSig. Coefficients Std. Error Beta 1 (Constant) 000 .081 .000 1.000

attitude 646 .081 .646 7.930 .000

Dependent Variable: intension to buy R2 - 0.417, p = 0.000

RQ 1 : Are there significant differences in perceived risks, benefits towards online shopping between consumers in India and UK? No statistically significant differences were found in the overall perceived risks of UK and Indian respondents. However Indian online shoppers felt a higher level of perceived risks in terms of financial/privacy risk and time/ convenience risk than their UK counterparts (Table 7). UK respondents perceived significantly higher overall benefits of online shopping as compared to the Indian counterparts. While UK online shoppers felt significantly higher level of perceived benefits of online shopping in terms of shopping/ convenience benefits and product selection benefits, Indian online shopper felt significantly higher hedonic benefits (Table 8). Table - 7 : Perceived Risks of Online Shopping between UK and Indian Respondents

Total UK Respondents Indian t-test for Equality of Means respondents (N=I04) Respondents (N=201) (N=97) tdfiSig. (2-tailed)

Perceived Risk Index 3.34 3.23 3.45 0.119 196 N.S

Financial/ privacy risk 3.10 2.90 3.31 -3.672 196 .000 - Time /convenience risk 2.55 2.26 2.85 3.699 196 .000

Product risk 4.13 4.13 4.14 1.465 196 N.S

Channel risk •57 3.64 3.5 1.115 196 N.S

A 5 pt Linker scale was used to measure each item of the above constructs ranging from 1 (strongly disagree) to 5 (strongly agree) with 5 representing the highest perceived risk. Table - 8 : Perceived Benefits of Online Shopping between UK and Indian Respondents

Total respon- UK Indian t-test for Equality of Means dents Respondents Respondents (N=201) (N-104) (N=97) t df Sig. (2-tailed)

Perceived Benefit Index 3.64 3.74 3.56 3.501 196 .001

Shopping convenience benefit 3.99 4.22 3.76 3.923 196 .000

Product selection benefit 3.79 4.01 3.58 3.488 196 .001

Ease and comfort benefit 3.78 3.88 3.69 1.366 196 N.S

Hedonic benefit 3.01 2.82 3.21 -4.760 196 .000

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A 5 pt Likert scale was used to measure each item of consumers turn to Internet in search of cheaper goods. the above constructs ranging from 1 (strongly disagree) Popular brands also offer the facility of installments thus to 5 (strongly agree) with 5 representing the highest enabling the middle class to afford branded merchandize. perceived risk As such provisions are absent in the Indian online market, the provision of such features by marketers will Summary help to attract Indian consumers to online shopping. The research was conducted to understand perception of risks and benefits which consumers associated with Since Indian consumer does not significantly recognize online shopping in India and UK The findings lend support time/convenience benefit associated with online to the fact that online shopping is still viewed as risky shopping, Indian marketers/managers should focus on proportion instead of its substantial benefits. The findings making website easier and user friendly and should look also reveal that with increased usage of Internet for online to reduce the user website navigation time by not asking shopping (75% of the British respondents had shopped information (e.g. personal details) which are not important online as compared to 46% of the Indian respondents), The findings that Indians use Internet for the purpose of the consumers appreciate the benefits of online shopping social interaction/networking (88%) greater than UK more. counterparts (77.9%) imply that Internet marketers need In our study Indian consumers showed higher perceived to encourage Indian Internet users to become the Internet risks in all the four constructs, however only two buyers. Internet marketers should develop marketing constructs, financial/privacy and time/convenience risks strategies which lead Indian consumers from were significantly higher. This implies that Indian communities of fantasy, relationship and interest toward consumers perceived higher risks towards online communities of transactions (Armstrong and Hagel, shopping as compared to UK counterparts. In case of 1996). perceived benefits Indian consumers assigned Further as also observed by Taylor et al., (1997) the significantly higher value for hedonic dimension than UK study also points out to the fact that cultural differences counterparts, however in terms of shopping and product lead to differences in internet usage particularly relating selection benefits, British consumers had significantly to online shopping. In other words, people from different more positive view of the online shopping benefits. cultures have different motivations for shopping online Implications and show different preference for certain product at online stores. Therefore it is suggested that Internet marketers As in the previous researches (Bhatnagar et al., 2000; should consider cultural differences in their global Jarvenpaa and Todd 1997; Jones and Vijayasarthy, 2000), marketing websites when dealing with consumers all this study also identifies that trust and security are the over the world. big concerns which impede online shopping. The study also points out that though same risks (financial/ Limitations and Further Research security, product risk) are perceived by both British and This study has some limitations which need to be taken Indian consumers, the online sales are $42 billion as into consideration while understanding the findings. First compared to Indian figure of 51 million (Forrester, 2010).It and the most important limitation of the study is it's thus is important for marketers to develop a strategy for statistical limitation. A linear regression analysis was enhancing benefits of online shopping rather than only used to test each of the hypothesis and research laying stress on improving security of e- commerce in questions which obviously had led to shortcoming of the the Indian context. research not being able to explore the structural The study also brings out the observation that the Indian relationship among variables. A structural equation model Internet users do not feel that the medium offers variety (SEM) is needed to attempt to identify the exact causal and easy access to the wide range of merchandise, relationship among variables. Future researchers should thus an important remedy to increase e- consumer base use SEM model to test the hypotheses and research will be to provide users with online product variety to questions to understand the structural relations among match the variety available in retail stores such that it the variables. leaves Indian consumers with no reason to turn to the Due to limitations of time and budget, the sample sizes "brick and mortar shops". The study also points out that (India and UK) were kept small and an elaborate and while the UK respondents agreed that Internet offered detailed research could not be carried out. To remove greater product information like prices, than in-store any discrepancies which might have arisen due to these prices, Indian respondents did not feel the same. This limitations, it is suggested that future research should can be related to the fact that in nations like UK various increase the sample size and also look at the wider discounts are offered for online buyers and generally spectrum of the society.

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Secondly, only limited variables namely perceived risk • Bhatnagar, A., Misra, S. & Rao, H. R. (2000). On and benefits were considered during the research. The risk, convenience and Internet shopping behavior. influence of demographic and personal variables such Communication of the ACM, 43(11), 98-105. as gender, life style, occupation, income, perceived • Burke, R. R. (1997). Do you see what I see? The social support on attitude towards online shopping was future of virtual shopping. Journal of the Academy of omitted. Further research could examine the relationship Marketing Science, 25(4), 352-361. of these variables on online shopping behavior. • Chattopadhyay, A. & Basu, K. (1990). Humor in Thirdly, the study doesn't look at the influence of product advertising: The modelling role of prior brand categories on attitude towards online shopping. As some evaluation. Journal of Marketing Research, 27(4), of the pervious researchers have shown (Kargonkar, 466-476. Girard, Silverblatt, 2003) purchase preferences for online • Derbaix, C. (1983). Perceived risk and risk relievers: shopping significantly differ by product category, further An empirical investigation. Journal of Economic research can look into that dimension also. Psychology, 3(1), 19-38. Fourthly, the research doesn't look at the relationship • Dillman, D. A. (2000). Mail and Internet Surveys. New between Internet usage and buying behavior. York: Wiley. Lastly, the research is based on exploring country based • Eastlick, M. A. & Feinberg, R. A. (1999). Shopping online shopping differences and does not consider effect motives for mail catalogue shopping of competing of cultural dimensions such as power distance, theo¬ries. Electronic Commerce Research and uncertainty avoidance, individualism / collectivism and Applications, 6(4), 433-442. masculinity/ femininity (Hofstede, 1984), on online • Eastlick, M. & Feinberg, R. (1999). Shopping motives shopping behavior. Therefore, future research may for mail catalog shopping. Journal of Business consider the effects of such variables also. Research, 45(3), 281-290. In spite of its limitations, the study is an exploratory • Festervand, T. Y., Snyder, D. N. & Tsalikis, J. D. attempt to examine differences in perceived risks, and (1986). Influence of catalogue vs store shopping and benefits associated with online shopping between two prior satisfaction on perceived risk. Journal of cultures/countries. A growing understanding of the above Academy of Marketing Science, 14(4), 28-37. relationships will hopefully serve to make Internet more • Forsythe, S., Liu, C, Shannon, D. & Gardner, L. C. user friendly, easy to understand and viable global (2006). Development of a scale to measure the shopping medium in the future. perceived benefits and risks of online shopping. Journal of Interactive Marketing, 20(2), 55-75. References • Forsythe, S. M. & Shi, B. (2003). Consumer patronage • Ajzen, I. & Fishbein, M. (1980). Understanding and risk perceptions in Internet shopping. Journal of Attitudes and Predicting Social Behavior. New Jersey: Business Research, 56(11), 867-875. Prentice-Hall. • Fram, E. H. & Grady, D. B. (1997). Internet shoppers: • Alba, J., Lynch, J., Weitz, B., Janiszewski, C, Lutz, Is there a surfer gender gap? Direct Marketing, 59(9), R. & Wood, S. (1997). Interactive home 46-50. shopping: Consumer, retailer, and manufacturer • incentives to participate in electronic marketplaces. Girard, T., Korgaonkar, P. & Silverblatt, R. (2003), Journal of Marketing, 61(3), 38-53. Relationship of type of product, shopping orientations, and demographics with preference for shopping on • Amstrong, A. & Hagel, J. III (1996). The real value of the Internet. Journal of Business and Psychology, online communities. Harvard Business Review, May/ 18. 101-120. June, 74(3), 134-141. • Ghosh, S. (1998). Marketing business sense of the • Anand, P. & Stemthal, B. (1990). Ease of message internet. Harvard Business Review, March-April, processing as a moderator of repetition. Journal of 26(2), 127-135. Marketing Research, 27(3), 345-353. • Gill, J. D., Grossbart, S. & Laczniak, R. N. (198). • Benassi, P. (1999). Truste: An online privacy seal Influence of involvement, commitment and program. Communication ACM, 42(2), 56-59. familiarity on beliefs and attitudes of viewers exposed • Bhatnagar, A. & Ghose, S. (2004). Segmenting to alternative Ad claim strategies. Journal of consumers based on the benefits and risks of Internet Advertising, 17(2), 33-43. shopping. Journal of Business Research, 57(12), • Hassan, A. M., Kunz, M. B., Pearson, A. W. & 1352-1360. Mohamed, F. A. (2006). Conceptualization and

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AN EXPLORATORY STUDY ON ROAD RAGE AND ITS DEGREE OF PREVALENCE IN COCHIN CITY

Dr. Jacob Mathew Pulikotil 1 Mr. Jithin Benedict2

Abstract Cochin is one of the buzzing hubs of south India. The city has been developing for the past decade commercially and geographically. Cochin is no longer known as a port city. Smart city, Vallarpadam container terminal, international transshipment hub, big malls more over advent of metro rail is paving way to greater footfall to this city. On this juncture we also witness roads of Cochin rattling and snarling with exorbitantly high traffic. Peak Office hours often witness huge traffic jams and endless honking, showering of bad words and at times chaotic. Reckless driving and speedy over takings are giving signs of road rage in the city. Road rage is aggressive or angry behavior by a driver of an automobile or other road vehicle. The cases of road rage are reported in major cities and off late in Delhi. This is an exploratory study to understand whether there is a presence of road rage in Cochin and if so the degree of its prevalence.

Introduction race zoom their motorcycles and cars on roads, giving Bus crew booked for road rage others a spine chilling awe. Road rage is a common phenomenon in today’s society due to motorists’ In yet another instance of `road rage’, the employees of frustrations during heavy traffic volumes. ‘Road rage’ is a private bus broke the windscreen of premium car near aggressive or angry behavior by a driver of an automobile Company paddi junction, Aluva on the National Highway or other motor vehicle. Such behavior might include rude 47 here on Saturday. The incident took place at around gestures, verbal insults, deliberately driving in an unsafe 11.30 a.m. when employees of the bus ‘Concord’, plying or threatening manner, or making threats. The most on the Aluva-Ernakulam route had an altercation with serious forms of road rage is when people indulge in Ajeesh Gopi, the car owner. “The car, driven by Ajeesh’s physical fight, altercations, assaults, and collisions which wife, overtook the bus when it halted at a bus stop. Since result in injuries and even deaths. then, the driver of the bus was honking and flashing light to overtake the car but owing to the bad condition of the Road rage increases crime rates the in form of arguments road, the driver could not give side to the other vehicle’’, and assaults ending up in injury and even death. Risky said police. Before reaching Muttom, the bus overtook driving is one of the most common causes of road traffic the car through the left and the car overtook the bus accidents. again when it halted at a bus stop. The indiscriminate The prevalence of Road Traffic Accidents (RTA) has been honking resumed as soon as the car overtook the bus increasing drastically every year. It is estimated that, and the bus driver managed to overtake the car and by 2020, road traffic disability-adjusted life years lost stopped it. “Soon, the bus crew rushed towards the car will move from being the 9thto the 3rdleading cause in and hurled abuses at the car passengers. In a fit of rage, the world and 2ndleading cause in developing countries they also broke the right side of the windscreen by hitting (OIJMS, 2015). According to WHO, RTAs are the sixth with a stone without any provocation”, police said. The leading cause for hospitalization, disabilities, death, and woman who had been driving the car was taken to a economic losses in India. hospital with high blood pressure. A case has been registered against the driver and conductor of the bus Factors which can lead to road rage can be traffic for damaging the windscreen and verbally abusing the congestion, weather condition, noise, time constraint, woman and her husband. underlying emotions (anger, frustration, and irritation), individual characteristics (age, gender, socioeconomic - The Hindu 23rdAugust, 2015 status, culture) and personality of the person responsible On a normal day while we travel to our work stations for road rage. Social learning theorists suggest that it is and back, we encounter many vehicles and people in a response learned through observation or imitation of transit. Some who obey the road rules and respect each significant social figures in their life, media, or on road other’s time and schedule. Some others snarling and experiences. honking triggering irritation and yet others in a busy mice Surveys reveal that most drivers have experienced some form of road rage, as victim or as perpetrator. In India

1. Professor & HOD, Naipunnya Institute of Management and Information Technology, Thrissur. 2. Assistant Professor, Naipunnya Institute of Management and Information Technology, Thrissur.

Special issue November 2015 Page 105 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 alarmingly there are16 deaths and 58 road injuries per or kills another motorist, passenger, or pedestrian, or hour. Delhi ranks highest in terms of fatal accidents and attempts or threatens to injure or kill another motorist, in number of pedestrians and cyclists falling victim to passenger, or pedestrian. "Road Rage" often occurs with road crashes. The statistics available projected that India exchange of swear words and furious shouts at the fellow had 3, 29,000 cases of signal jumps, 14,000 cases of commuter. drunken driving and 45,158 cases of over speeding. Fatal Even though there are several definitions of road rage, accidents have gone up from 18% in 2003 to 28% in there is no widely accepted definition on the concept 2015 (NDTV 23rd June, 2014). and definition of road rage. The definitions of road rage The behavior of drivers that troubled people most included range from simply “loss of emotional control while driving” persistent sounding of horns (29 per cent), continuous (McDonald, 2002) to a situation where “a driver or flashing of headlights (27 per cent), aggressive or passenger attempts to kill, injure, or intimidate a threatening driving behavior (25 per cent) and rude pedestrian or another driver or passenger or to damage gestures or verbal insults (23 per cent) (The Hindu, 3rd their vehicle in a traffic accident” (Asbridge, Smart and August, 2005). Mann, 2006, p.109). The most widely accepted definition of road rage has been coined by The U.S. National News Reports on Road rage in India Highway Traffic Safety Administration (NHTSA). It • Kochi: The National Crime Records Bureau estimates defines road rage as an episode in which "an individual show that normal rush-hour travel in several cities commits a combination of moving traffic offenses so as pales in comparison to this city, which witnessed to endanger other persons or property; or an assault about 13,431 road rage incidents over the past year with a motor vehicle or other dangerous weapon by the alone – The Hindu, 20th August, 2015 operator or passenger(s) of one motor vehicle on the • Delhi: 2 Shot At In Case of Alleged Road Rage.- NDTV operator or passenger(s) of another motor vehicle caused October 09, 2015 by an incident that occurred on a roadway". The • Son of DTC Driver Killed in Road Rage Incident in dictionary.com describes road rage as a “fit of violent Delhi - NDTV September 02, 2015 anger by the driver of an automobile especially one directed towards and endangering other motorists or • Ahmedabad: A young woman was verbally abused pedestrians”. All definitions agree that road rage is a and her car repeatedly rammed by two men with their criminal offense and is an assault caused by the driver Innova SUV at a busy intersection in Ahmedabad..- or of one vehicle based on an incident that occurred on NDTV March 07, 2015 a roadway. • Mumbai: The car driver got into a fight with a Volvo bus driver beat him up with a bat and smashed the The term “road rage” was first used in the US in the mid- windshield of the Volvo. When the assailant tried to 1990s (Marshall and Thomas, 2000). Currently the term escape, the bus driver climbed onto to the Maruti “road rage” is used by researchers in traffic psychology, Swift to force it to stop. NDTV August 13, 2015 a branch of psychology that focuses on the behavior of road users. Many researchers argue that the definition • Delhi: In road rage case, man beaten to death with of road rage should include all forms of aggressive driving rods- NDTV April 06, 2015 or anti-social behavior on the road. Elliott (1999) lists 15 Research Frame work : behaviors associated with road rage, which range from There have been various reports that road rage has been beeping the horn and gesticulating to threatening or prevalent in Cochin City, but there has been no published physically assaulting another driver. According to (Mc study. Thus the aim of the study is to understand whether Donald, 2002), aggressive driving and road rage road rage and aggressive behavior are prevalent among worldwide cause hundreds of thousands of deaths every drivers and motorists in Cochin City. This study will also year and damages worth billions of dollars The problem be able to establish the reason for road rage in Cochin is set to increase as more people use vehicles to travel City and a general profile of drivers and motorists who and roads become more congested. are perpetrating road rage. Causes of road rage Review of Literature Although the elements that cause road rage can vary, "Road Rage" is a term used to refer to the violent anger is one of the most common causes. Situations incidents caused by stress while driving on high traffic that can cause road rage include: zones on roadways. It is usually associated with • Heavy traffic or gridlock "Aggressive Driving". But, in lay man's language, "Road • Feeling stressed Rage" can be defined as an incident in which an angry • Construction delays or impatient motorist or passenger intentionally injures • Distracted driving

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• Loud music Many countries all over the world including: U.S, Canada, • Slow driving Australia, England, Ireland, Japan, New Zealand are • Busy work schedule taking steps to approach to some solution in this regard. • Crowded roads Road rage increases crime rates in form of arguments and assaults ending up in injury and even death. Risky • Personal problems driving is one of the most common causes of road traffic • Stress accidents (James and Nahl, 2000). The prevalence of • Bad behaviour from other drivers road traffic accidents (RTA) has been increasing Road rage and aggressive behaviors drastically every year. According to WHO, RTAs are the There are different types in which road rage is depicted: sixth leading cause for hospitalization, disabilities, death, 1. Verbal Road Rage : Yelling, Cussing, Gesturing, and economic losses in India (Health Ministry, India, Honking, Insulting 2000). 2. Quiet Road Rage: Complaining, Rushing, Competing, Road rage has indeed “reached epidemic proportion in Resisting major cities of the world with almost half of all drivers 3. Epic Road Rage: Cutting off, Blocking, Chasing, experiencing some form of attack or abuse in the course Fighting, Shooting of driving”. In Britain, an Automobile Association survey 4. Making obscene gestures to other drivers went even further to report that “nine out of ten motorists 5. Tailgating: deliberately followed by driving in the front claim to have been victims of road rage” (BAA, 1996). too closely Despite the increased prevalence of road rage, there 6. Changing lanes too quickly and cutting another driver have been very few studies being done in India and more off particularly in Cochin City. Most of the studies have so 7. Overusing the car horn far limited to developed countries or in metro cities of 8. Headlight flashing India and was used to assess the risk factors or profile 9. Speeding and aggressive acceleration. of people responsible for the same. The study on road rage is necessary especially in developing countries like 10.Forming a "convoy" to block access to a traffic lane. India which is having favorable factors for road rage like 11. Honking the vehicle's horn or flashing lights excessively. overcrowding, non-stringent traffic rules and bad roads. 12.Deliberately hitting another person, vehicle or object Cochin has become a hot spot for road rage due to the with one's own vehicle. fast pace of its development and construction which has 13.Threatening to use a deadly weapon. left the roads with a lot of damage and also contributes 14.Revengeful feeling. to the traffic snarls and jams. Even though all these are considered to be behaviors Research Method associate by road rage, Psychologists distinguish The present study used an on-line survey questionnaire between "Road Rage" and "Aggressive Driving". to elicit information from the community. The sample for Accordingly even though the symptoms may be same, the study was selected from Face book. This included they are not synonymous. "Road Rage" is uncontrolled people who either lived in Cochin or drive through roads anger that results in violence or threatened violence on in Cochin. the road; it is a Criminal Behavior. "Aggressive Driving" on the other hand does not rise to the level of criminal Recruitment of Participants behavior. "Aggressive Driving" includes tailgating, abrupt Subjects were recruited electronically through emails, lane changes, and speeding, alone or in combination. and social networking websites. The criteria included a) These potentially dangerous behaviors are traffic Being at least 18 years of age; b) Having a valid driver’s offenses, but are not criminal behavior. In fact, "Road license; c) Operating a motor vehicle at least one time Rage" can be distinguished from any other traffic incident per month and staying in Cochin City. Exclusion criteria by its "willful and criminal" nature. included never having operated a motor vehicle. "Road Rage" is now considered to be a cultural norm. Instruments used in the study People learn this behavior from childhood when being Subjects who agreed to participate and accepted the driven by parents and adults. "Alcohol" has at many terms of informed consent provided responded to the times been found to be associated with many of the survey questionnaire that included two sections : incidents of road rage."Road Rage" is considered as a 1) demographic questions menace because it can lead to physical injuries and in 2) driving experience questions; which collected some cases it can lead to death also. perceptions on related driving behaviors by

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themselves and other drivers. The survey included collection was completed, data was exported into the several sets of questions developed specifically for proper format for importation into SPSS for statistical the purposes of this inquiry and standard demographic processing. questions (e.g. age, education, and employment Analysis status). Questions regarding the subjects’ driving experience (e.g., reasons for driving, types of routes Data was imputed and analyzed using SPSS ver. 17.0. taken, quantity of weekly driving, and number of years Internal consistency of DAS was assessed by of driving) were collected to establish relationships if Cronbach’s alpha coefficient and the value was 0.88, any from the study. which was considered to be satisfactory. Factor analysis was used in data reduction to identify a small number of 3) Driving Anger Scale (DAS): The DAS measures driver factors that explain most of the variance. The principal anger dimension and is used to measure the anger component analysis was used as the means of extraction intensity, risky behavior while driving, aggressive and and varimax rotation. Other important initial tests are expression of driving anger. Respondents were asked the Keiser-Meyer-Olkin (KMO) measure, and Bartlett’s to rate the level of anger they experience while driving test of sphericity. Pearson’s correlation was used to using a 5–1 Linker scale (5 = “strongly agree” and evaluate the relationships between DAS and 1= “strongly disagree”). The original DAS was a 33- demographic variables. T-tests were conducted to item scale (alpha reliability = 0.90). The current study determine in-between group differences on basis of utilized a modified form of DAS taking into gender, age, education and other demographic factors. consideration of the problems experienced in roads of Cochin. It consisted of 32 questions. Scoring Results consisted of summing the responses to the scores The primary Face book contact was 1368 out of which on individual subscales and a total summated three hundred and sixty-seven individuals were found to response of 32 items, with higher scores representing be friends whom qualified for being included in the study greater driver anger. The modified DAS returned with to whom the mail invitations were then sent. A total of a good reliability (alpha reliability = 0.88). The scores 208 were also sent the questionnaire through Gmail. can range between 32 to 160. As per the manual, a The survey was open for one month and a total of 100 score of 80-100 indicates proneness to road rage. A subjects returned the questionnaire. This data of 100 score of 101 to 120, indicates mild road rage, a score subjects were analyzed with SPSS 17.0. The web between 121-140 was considered to be moderate road perform was designed in such a way that in order to fill rage, and a score above 141 indicated severe road the survey subject needed to sign the web consent form. rage. Moreover they also had to answer all the questions upon which the questionnaire can be returned. Thus, all Procedure for data collection subjects who participated in the study completed the The study population was selected from Face book and questionnaire. Those who did not complete the study online community. A random selection of people who could not upload the same. drive vehicles in Cochin City was selected and was approached over web for participation in the study. All The demographic analysis came out with the subjects who had not responded to the first email were following results : sent a second and final mail offering to participate in the 81% subjects were male and 19% female. As far as age study. The web Performa consisted of three pages of group is concerned, 24 % belonged to the 18-25 age information gathering procedure. Prior to filling the group, 22% each belonged to the 26-33 and 34-41 age assessment perform, subjects were to provide written group. The 42-50 age groups had 20%and above 51 web based consent for participation in the study. The years had only 12%. 52% of the subjects were married first page consisted of semi-structured format for and 48% unmarried. Majority of the subjects had PG collecting sociodemographic data. The subsequent qualification 60%, followed by 29% with PhD, 10% UG. pages consisted of the assessment instruments. The 44% of the subjects were students, 36% worked in private procedure and instruments were kept as short as sector, the remaining others worked in Public, possible for better participation in the study.Subjects government or had their own businesses. 100% of the were directed to a specific link, (http://www.e Surveys subjects had driving license. 77% of the subjects drive Pro.com/Survey.aspx?id=5d8cfba5-591c-442b-ac07- every day followed by 20% who drive once in a week. 3008808194e2). Subjects began by reading and agreeing 47% of the subject’s drive 15 Km or less, 28% drive to the online informed consent. Data was collected until between 16-25 Kms and 12% between 26-35 Kms. 58% an adequate number of responses were received. The of the subjects drive 2-wheelers followed by 42% who ideal sample size was planned to be between 120- 200 drive 4-wheelers. 82% of the drivers did not receive any subjects, with a minimum of 100 subjects. Once data

Special issue November 2015 Page 108 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 punishment for rash driving whereas 9% subjects have The demographic variable age was correlated with DAS; been fined once for rash driving. 3 each of the subjects it was found that anger levels in younger drivers were have been fined twice, thrice, and four times for rash higher as compared to the older age group. This finding driving. Majority of the drivers drove in urban areas 54% is supported by previous studies mentioning that young followed by 35% in suburban and 9% in rural areas. 40% male drivers were approximately three times more prone did not have had any accidents whereas, 28% had one to causing untoward consequences on the road while accident, 18% had two, 8% had three and 6% had 4 or driving (Eksler&Lassarre, 2008). This study view point more. 77% do not alcoholic beverages and 23% also strengthens the view that as drivers become older, drank alcoholic beverages. Out of the 23 respondents they may become more law abiding and less risk taking who drink, 66% of the subjects have at least one drink, and thus decreasing chances of anger levels and road 22% subjects have 2 and 11% have 3 drinks on a rage. daily basis. Regardless of age, gender or qualification, high stress The DAS levels indicated that 51% of the subjects were levels play an important part in ventilating anger towards ‘prone’ to develop road rage. 29% of the subjects had others. This supports the research by McMurray, who ‘mild’ road rage, while 8% of the subjects had ‘moderate’ found that behaviors like reckless driving or displaying road rage. There were no subjects in the ‘severe’ road anger towards others is more in people having higher rage category. stress levels and they use the vehicle as an outlet for ventilating their stress. Table - 1 : KMO and Bartlett’s test DAS score All the respondents agree that they have witnessed KMO and Bartlett's Test aggressive behaviors, except horn-honking (55 percent). Subjects were asked to endorse what aggressive Kaiser-Meyer-Olkin Measure of .737 behaviors they display while driving. It was found that Sampling Adequacy. yelling at other drivers topped at 22%, followed by verbal Bartlett's Approx. Chi-Square 1667.011 abuse and overtaking at 20% each, slamming brakes at Test of 14%, driving aggressively at 12% and cutting lanes at Df 435 Sphericity 17%. Sig. .000 Although the number of female subjects in the sample was low it was found that there was only a slight Table - 1, is used to test assumptions; essentially, the difference between men and women’s scores for driving Kaiser-Meyer-Olkin (KMO) statistic should be greater anger, with men having higher scores (average DAS than 0.60 and the Bartlett's test should be significant score for men was 96.29) than women (average DAS (e.g. p < .05). The value obtained in DAS stands at 0.737, score was 92.42), meaning that men in the sample which is good and the Bartlett’s test is significant (.000). attributed slightly higher offensive driving behavior than From Factor analysis it was found that the top ten did women in the sample. reasons for people to get angry, revengeful and frustrated There was no evidence for a significant relationship while driving are: between alcohol consumption and driving anger, the data • When other drivers overtake from an unsafe position do not demonstrate a significant relationship between (.844) alcohol consumption and aggressive driving p=.229, • Not allowing to overtake (.826) which is not statistically significant (p>.05). • Traffic jams (.791) Summary of Key Findings • Not able to drive fast (.772) The present study set out to explore whether road rage • Grabbing parking space while you wait patiently for and aggressive behavior existed in the roads in Cochin. other driver to pullout (.766) Road rage in the literature has been linked to aggressive • Other drivers not keeping up the pace (.762) driving, roadway violence and numerous negative • Not able to drive fast due to traffic obstructions (.757) consequences to individuals and society such as stress- related health problems, property damage, bodily injury • Aggressive driving by other drivers (.742) and death (Deffenbacher et al., 2003). Survey data, along • Stress and frustration in their lives (.730) with demographic and driving experiences were collected • Bad treatment from other drivers (.723) in order to examine participants’ awareness of driving • Other drivers talking on the cell phone while driving anger. Relationships among these variables were studied and paying no attention to traffic lights (.705) in the hope that the study’s findings might add to the scholarly understanding of what is popularly called “Road

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Rage” and provide insight leading to social and References psychological approaches to reduce this high-cost • M. Asbridge, R. G. Smart, and R. E. Mann, “Can we societal phenomenon. There was only small evidence prevent road rage?” Trauma, Violence, & Abuse, vol. to prove that there is some significant relationship 7, no. 2, pp. 109–121, 2006. between participants’ gender and their tendency towards • J. L. Deffenbacher, “Angry college student drivers: driving anger. This finding is almost consistent with the characteristics and a test of state-trait theory, studies that have examined trait driving anger (J. L. ”Psicologia Conductual, vol. 11, no. 1, pp. 163–176, Deffenbacher, Filetti et al., 2003). 2003. Age was positively correlated with driving anger, with • E. M. Grey, T. J. Triggs, and N. L. Haworth, “Driver young drivers being more pessimistic than older drivers. Aggression: the role of personality, social Previous literature also reports similar findings showing characteristics, risk and motivation,” Australian young male drivers displaying more aggressive behavior Transport Safety Bureau, CR-81, 1989. in youth compared to older adults (McMurray, 1970). • V. Eksler, S. Lassarre, and I. Thomas, “Regional The level of education has also been found to have a analysis of road mortality in Europe,” Public Health, negative relationship with aggressive driving. However, vol. 122, no. 9, pp. 826–837, 2008. we cannot conclude since the current study had majority of participants being educated. • L. McMurray, “Emotional stress and driving performance : the effects of divorce,” Behavioural Conclusion Research in Highway Safety, vol. 1, no. 2, pp. 100– As the study concludes, the authorities can take 114, 1970. measures to educate drivers on traffic rules before • World report on road traffic injury prevention providing license; more stringent rules for obtaining license • www.who.int/...injury prevention/.../road traffic/world should be implemented. More over rewards and report/.../index.htm l punishments for following traffic rules and invocating penalty and jail terms for breaking rules should be in the • USDOT-NHTSA, 1998. U.S. Department of offering. Better technology to detect red light jumpers Transportation (USDOT), National Highway Traffic and cameras with night vision should be made on Safety Administration (NHTSA). (1998). Motor vehicle highways and city limits. Sessions on safe driving should traffic crashes as a leading cause of death in the be arranged for drivers with a focus on emotional U.S., 1994. In Bureau of Transportation Statistics management and ample rest. Stress busters by way of (BTS): U.S. Department of Transportation (USDOT) meditation, and listening to songs and so on and so (Eds.), Transportation Statistics Annual Report 1998 forth should also be taught to drivers. (Technical report DOT H5 808 687) [On-line]. Available: http://www.bts.gov. Future studies should target a larger population for online and offline assessment comparing multiple cities and drivers with a view to understand the intricacies and elements that trigger road rage. This will enable to curtail anger in drivers. The researcher’s suggestpolicy makers to make appropriate reforms in traffic regulations for better road situations.

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THE IMPACT OF MARKETING MIX ON CUSTOMER SATISFACTION TOWARDS LAPTOP INDUSTRY

Dr. M. B. M. Ismail1 Mr. A. L. M. Shameem2 Mr. A. Riswan3

Abstract In today’s dynamic business environment, marketers must study about marketing mix for the targeted consumer expectation, perception, preferences, brand awareness and behavior for understanding consumer satisfaction. This study attempts to identify the impact of marketing mix on customer satisfaction towards laptop industry. 100 undergraduates from South Eastern University of Sri Lanka is taken as sample size for the study. In this research, the data were collected mainly from primary data. Study concluded that majority of the respondents are females. Results of the correlation revealed that product, price, place, and promotion have relationship with satisfaction. Hypothesis result disclosed that there is relationship between marketing mix and customer satisfaction. Results of the regression exposed that values of R square and adjusted R square are 0.539 and 0.520 respectively. This proves that marketing mix such as product, price, place and promotion explain 50% of the variation on customer satisfaction. Key words : customer satisfaction, laptop industry, marketing mix.

Introduction is a set of controllable elements of marketing tools and Today’s business environment is more dynamic and marketing strategies of a company in combining these competitive due to the continuous and rapid changing elements. By the year 2000, an eminent marketing environment and dramatic innovation in the information expert termed as Cutler (2000) indicated that a set of technology. Each organization is trying to achieve its marketing mix variables can be controlled by the organizational goals like more profit, more market share marketing companies and institutions in their target and survival. In every business, consumers are the center market and its composition are required for the reaction. of the success. In order to be successful, an organization Recently, another marketing scholar outlined about must fulfill the needs of consumers and preferences. elements of the marketing mix that include a set of marketing tools for achieving the goals of the institute of Marketers must study the targeted consumer expectation, marketing (HaKansson and Waluszewski, 2005). Long perception, preferences, brand awareness and behavior. ago, marketers use many tools in order to receive Understanding consumer satisfaction is an essential favorable responses from their target markets. These thing in the contemporary business environment. The tools comprise the marketing mix. In fact, marketing buying decision of each consumer differs from person mix is a set of tools that institutions use to achieve their to person. The marketing mix is an important element marketing goals (McCarthy, 1964). in the field of marketing. The steps taken by a business enterprise to improve sales is known as marketing effort. Harrell and Frazier (1999) classified these tools into four Therefore, marketing effort is not a single function but a major groups, called the 4P's of marketing that engulfs combination of many different activities undertaken by a product, price, place and promotion. A product as defined firm to market its products. To attain success in the by Armstrong and Kotler (2006), is anything that can be marketing effort, the various components should be offered to a market for attention, acquisition, use, or coordinated. The various components and instruments consumption that might satisfy a want or need. used in the marketing process constitute the marketing According to Kotler, Armstrong, Wong, and Saunders mix. The selection of a target market serves as the basis (2008), price is the amount of money charged for a for creating a marketing mix to satisfy the needs of that product or service, or the total values that consumers market. Organization should also analyze customer exchange for the benefits of having or using the product needs, preference and behaviors with respect to product or service. This factor is defined by Armstrong and Kotler design, pricing, distribution and promotion (Clark, 2007). (2006) as a set of interdependent organizations that caters to the process of making a product available to Statement of the problem the consumers. Promotion is defined as sales promotion, Different marketing experts defined marketing mix in advertising, personal selling, public relations and direct different ways during different timeframes. Marketing mix marketing (Borden, 1984).

1. Senior Lecturer, Faculty of Management and Commerce, South Eastern University of Sri Lanka, Oluvil, 2. Senior Lecturer, Faculty of Management and Commerce, South Eastern University of Sri Lanka, Oluvil. 3. Undergraduate, Faculty of Management and Commerce, South Eastern University of Sri Lanka, Oluvil.

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Customer satisfaction is the only profitable tool used by Parasuraman, et, el,. (1988) pointed out that customer the companies. Putting the customer first and then buying behavior is not fixed it is changing from time to anticipating their needs. In developing customer time. Nowadays, buyers are really sensitive in terms of satisfaction strategies and programs, financial service what the company markets. Customers focus on price, organizations are managing product and service delivery product, place and distribution as marketing mix systems to getting things right at the first time and elements that play an important role in the marketing maintaining standards. Customer satisfaction plays a competency. Third, findings of this study help to raise major role in the competitive business environment. sales, and profit. Armstrong and Kotler (2006) outlined Satisfaction means that a person’s feelings of pleasure that if the sellers do not fully put or give right thing to the or disappointment resulting from comparing a product customer it will affect the company sale, market share are perceived performance (or outcome) in relation to and profit. There were very few studies conducted on his or her expectation (Parasuraman, et, el, 1988). which marketing mixes competency influence the laptop buyer’s buying behavior decision. Fourth, there are In this case, laptop companies are aiming for high studies in different industries and different countries and customer satisfaction, because customers, who are just in different time frames with respect to marketing mix satisfied still, find it easy to switch when a better offer and customer satisfaction (Cutler, 2000). It is significant comes along. In early days, laptop market in Ampara to conduct a research to provide understanding and district was high and only few brands were imported. insight on the factors that influencing laptop purchase. But, nowadays, it has changed and grown rapidly. Lot Fifth, the findings of this study will help the company to of new brands with new features at various prices has understand more on the marketing competencies and introduced. However, most of the customers concentrate the customer satisfaction. Finally, this study fills the on buying particular brand whereas others buy some research gap in the areas of marketing mix and customer other brands. Nowadays, customers buy laptops for their satisfaction in laptop industries. professionals’ and study and entertainment purpose and prestige, fashion and etc. They give a special Review of Previous literatures consideration to price offer, quality after service, This study reviewed literature into three components communicate, advertisement and sales promotional such as marketing mix, customer satisfaction and the offers, design, style, color, and model. Companies try rapport between them. At a first glance, this study to develop and satisfy these attributes and customer reviews marketing mix. The marketing mix is a term used expectation through marketing mix. So, marketing mix to describe the combination of tactics used by a business (4Ps) have significant impact on customer satisfaction to achieve its objectives by marketing its products or towards lap top companies. services effectively to a particular target customer group Therefore, this study would like to identify the range of (CIM, 2004). It is also referred to as the 4 Ps: product, impact of marketing mix on customer satisfaction. price, promotion and place. The four Ps of the marketing Currently in the Ampara district, there are several types are briefly described as follows (Copley, 2004): Product, of laptops available in different prices, quality, product the item or service being marketed, through its features, features color varieties, sizes, models, designs, quality, benefits and quantities; Price, this includes the guarantee periods etc. This study analyses the price of the item and product assortments and lines, marketing mix and customer satisfaction towards the price changes and payment methods; Place, the location purchasing of laptops and as a result intended to identify where the product or service is available to the customer, the market leader in the Ampara district. including distribution channels; Promotion, market communication is achieved by personal selling, Research question and objective advertising, direct marketing, public relations(PR), sales This study rises “does marketing mix have significant promotion and sponsorship. influences on customer satisfaction?” as a research Second part of this literature reviewed about customer question. This research question is translated into satisfaction. Customer is a real or legal person who research objectives as “to identify the impact of marketing somehow relates to organization and benefits from its mix on customer satisfaction towards laptop industry”. goods and services. Hayes (1998) defined the customer Significance of the study needs as “features of a product or service, which indicate This study is important in several ways. First, this study its significant dimensions”. In a competitive marketplace assists to gain competitive advantage. Organizations where businesses compete for customers, customer environment is dynamic. In this dynamic turbulent satisfaction is seen as a key differentiator and increasingly environment, the laptop manufacturers or automotive has become a key element of business strategy. industry need to use fully integrated sources of competitive Customer satisfaction is the best way to keep a customer advantage in order to survive (Clark, 2007). Second, loyal and gain others like him. There are two principal

Special issue November 2015 Page 112 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 interpretations of satisfaction within the literature of Hypothesis development satisfaction as a process and satisfaction as an This study set the following hypothesis. outcome (Parker and Mathews, 2001). Early concepts • Null hypothesis : marketing mix is not related to of satisfaction research have typically defined customer satisfaction satisfaction as a post choice evaluative judgment concerning a specific purchase decision (Oliver, 1980; • Alternative hypothesis : marketing mix is related to Churchill and Suprenant, 1982; Bearden and Teel, 1983; customer satisfaction Oliver and DeSarbo, 1988). The most widely accepted Research Methodology model, in which satisfaction is a function of Sampling design disconfirmation, which in turn is a function of both expectations and performance (Oliver, Bearden, 1983). The population of this study is based on the laptop users (customers) among the undergraduate students. Thus, Third part of this study reviewed relationship between this study selected all undergraduates of South Eastern marketing mix and customer satisfaction. Marketing is University of Sri Lanka as the population for this study. a social and managerial process by which individuals Population and sample size are indicated in Table 1. To and groups obtain what they need and want through each 100 undergraduates, 3 undergraduates were creating, offering and exchanging products of values with selected. each other (Kotler and Armstrong, 2005). Based on the previous principle, a company’s success is caused by Table - 1 : Population and Sample Size the satisfaction of consumer’s wants. Achieving the Sample size (Number Faculty Population highest possible level of customer satisfaction is always of Undergraduates) a great challenge facing any company. When customers Faculty of 1023 31 receive a higher level of satisfaction while buying a Management and product, this means that they will repeat the buying Commerce operation for the same product (Reichheld, 1996), and Faculty of Arts 24 will also recommend it to others (Oliver & Swan, 1989a 806 & b).The relationship between marketing and customer and Culture satisfaction is highly expressed among researchers Faculty of Islamic 743 22 (Zineldin & Philipson, 2007). Yelkur (2000) found that Studies and the critical elements in the services marketing mix Arabic Language influence and positively effects customer satisfaction. Faculty of 9 286 At the same time, there is some evidence to support Engineering the contention that customer satisfaction translates into Faculty of Applied 449 14 higher than normal market share growth. Grant (1998) Science reports that the American Customer Satisfaction Index studies find a positive correlation between customer Total 3307 100 satisfaction and stock market returns. Conceptualization and Operationlisation Data collection method Conceptual model is depicted in Figure 1. Product is In this research, the data were collected mainly from primary data from undergraduates of South Eastern composed of product features, brand name, packaging, warranty and after sales services. Price incorporates University of Sri Lanka through given questionnaires for list price, discount, allowances, payment of period and the laptop users (customers). credit terms. Place embraces locations, transport, Results and Findings coverage, channel and inventory. Promotion engulfs Demographic profile of respondents advertisement, sales promotions, personal selling, direct 58% of the respondents are females. There are 42% of marketing and public relation. males respondents. There are 31%, 24%, 22%, 14% Figure - 1 : Conceptual model and 9% of respondents from FMC, FAC, FIA, FAS and FEN respectively. 2nd, 1st, 3rd and 4th year Marketing Mix undergraduates are 36%, 31%, 17% and 16% Customer respectively. Brands such as HP, , other varieties, • Product Satisfaction • Price and laptops are used by 37%, 34%, • Place 13%, 10% and 6% respectively. 29%, 21%, 17%, 15%, • Promotion 14% and 4% of undergraduates use laptops for 2, 3, 1, less than 1 year, 4 years and less than 5 years. 72%, (Source: Adopted from Kotler and Armstrong and developed by researchers) and 10% of undergraduates use laptops for study

Special issue November 2015 Page 113 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 purpose, and internet purpose. 8% of the undergraduates use internet for accessing games & leisure, e-mail communication, other, business activities. The remaining 10% of undergraduates use laptops for all of the above needs. Correlation Product, price, place, and promotion have relationship with satisfaction. Pearson values are 0.490, 0.466, 0.643 and 0.588 respectively. Marketing mix such as product, and price have moderate relationship with customer satisfaction. Place and promotion have higher relationship with customer satisfaction. Correlation values are shown in table 2. Null hypothesis set in this study is rejected and alternative is accepted. Accepting alternative hypothesis refers to that there is relationship between marketing mix and customer satisfaction. This is proved by significant values. Table - 2 : Correlation between marketing mix and customer satisfaction

Product Price Place Promotion Satisfaction Product Pearson Correlation 1 .480** .406** .462** .490** Sig. (2-tailed) .000 .000 .000 .000 N 100 100 100 100 100 Price Pearson Correlation .480** 1 .491** .422** .466** Sig. (2-tailed) .000 .000 .000 .000 N 100 100 100 100 100 Place Pearson Correlation .406** .491** 1 .491** .643** Sig. (2-tailed) .000 .000 .000 .000 N 100 100 100 100 100 Promotion Pearson Correlation .462** .422** .491** 1 .588** Sig. (2-tailed) .000 .000 .000 .000 N 100 100 100 100 100 Satisfaction Pearson Correlation .490** .466** .643** .588** 1 Sig. (2-tailed) .000 .000 .000 .000 N 100 100 100 100 100 **. Correlation is significant at the 0.01 level (2-tailed).

Regression Following the correlation analysis, regression analysis is conducted. Table - 3 : Model Summary Model R R Adjusted Std. Error Change Statistics Square R Square of the R Square F df1 df2 Sig. F Estimate Change Change Change 1 .734a .539 .520 1.86621 .539 27.769 4 95 .000 a. Predictors: (Constant), Promotion, Price, Product, Place

Model summary shows that values of R square and adjusted R square are 0.539 and 0.520 respectively. This shows that marketing mix such as product, price, place and promotion explain 50% of the variation on customer satisfaction. In terms of analysis of variance table shown in table 4, model is significant. Analysis of variance is shown in Table 4.

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Table - 4 : ANOVA

Model Sum of Squares df Mean Square F Sig. a 1 Reg ression 386.850 4 96.712 27.769 .000 Residual 330.860 95 3.483

Total 717.710 99 a. Predictors: (Constant), PROMO, PRIC, PRODUCT, PLAC

b. Dependent Variable: SATISFACTION

In terms of coefficient table, place, promotion, product and price influences on customer satisfaction in different degrees. Coefficient table is shown in Table 5. Table - 5 : Coefficients

Model Unstandardized Coefficients Standardized t Sig. Coefficients B Std. Error Beta 1 (Constant) -.744 1.083 -.687 .494 Product .141 .075 .160 1.891 .062 Price .071 .087 .071 .817 .416 Place .346 .074 .403 4.669 .000 Promotion .302 .090 .287 3.351 .001 a. Dependent Variable: SATISFACTION

Conclusion References Majority of the respondents are females. The highest • Grant, H. M., Lane, C. B., John, C., Jennifer, F., Jane, percentage (31%) of the respondents are from FMC. 2nd E. G., Timothy, A. D. and Veronica, J. D. (1998), year undergraduates are high. HP brand is used by the “Context-dependent memory for meaningful material: highest number of undergraduates. 29% of information for students”, Journal of Applied Cognitive undergraduates use laptops for 2 years. 72% of Psychology, Vol. 12, Iss. 6, pp. 617–623. undergraduates use laptops for study purpose. Results • Vorhies, D., Linda, F., Victoria, B. and Clark, M. of the correlation revealed that product, price, place, and (2007), “Organizational Market Information promotion have relationship with satisfaction. Values Processing and Market Learning Capabilities: are 0.490, 0.466, 0.643 and 0.588 respectively. Marketing Implications for Creativity and Performance,” mix such as product (0.490), and price (0.466) have American Marketing Association Winter Marketing moderate relationship with customer satisfaction. Place Educators’ Conference, San Diego, California. (Disc) (0643) and promotion (0.588) have higher relationship • Cutler, P. (2000), “Cutler in marketing management. with customer satisfaction. Hypothesis result disclosed (Abdul-Reza Rezaei Nejad, Translator) upon that there is relationship between marketing mix and publication of Tehran. customer satisfaction. Results of the regression exposed that values of R square and adjusted R square are 0.539 • Cutler, P. and Armstrong, G. (2000), “Principles of and 0.520 respectively. This proves that marketing mix Marketing. (February lustrous, Translator), Isfahan: such as product, price, place and promotion explain 50% Atropat publication. of the variation on customer satisfaction. These results • Håkansson, H., and Waluszewski, A. (2005), are similar with those of Bearden and Etzel (2012); "Developing a new understanding of markets: Hallowell (1996), Anderson et. al., (1994); Alom and reinterpreting the 4Ps", Journal of Business & Haque (2011); Arham (2010) who found the relationship Industrial Marketing, Vol. 20 Iss: 3, pp.110-117. between product; pricing; place (distribution); promotion • McCarthy, J. E. (1964), Basic Marketing: A and customer satisfaction. Managerial Approach, Homewood, IL: Irwin.

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• Gilbert, D. H. and Gary, L. F. (1999), “Marketing: • Bearden, W. O. and Teel, J. E. (1983), "Selected Connecting with Customers Prentice Hall learning Determinants of Consumer Satisfaction and on the Internet partnership : PHLIP”, 2nd edition, Complaint Reports," Journal of Marketing Research, Prentice Hall, NY. Vol. 20 No. 2, pp. 21-28. • Kotler, P. and Armstrong, G. (2006), “Principles of • Oliver, R. L. and DeSarbo, W. S. (1988), "Response Marketing”, 11th edition, Pearson Prentice Hall. Determinants in Satisfaction Judgments," Journal of • Kotler, P. and Armstrong, G., Wong, V. and Saunders, Consumer Research, Vol. 14 No. 3, pp. 495-507. J. A. (2008), “Principles of Marketing”, 1st edition, • Oliver, R. L. and Bearden, W. O. (1983), "The Role of Financial Times Prentice Hall. Involvement in Satisfaction Processes," in Advances • Borden, N. H. (1984), The Economic Effects of in Consumer Research, Ann Arbor, MI: Association Advertising. Homewood, Boston, U.S.A. for Consumer Research. • Parasuraman, A., Zeithaml, V. A. and Berry, L. L. • Kotler, P. and Armstrong, G. (2005), Principles of (1988) “SERVQUAL: a multiple-item scale for Marketing, 11th edition, Pearson/Prentice Hall, Upper measuring consumer perceptions of service quality,” Saddle River, NJ. Journal of Retailing, Vol. 64 Iss. 1, pp. 12-40 • Oliver, R. L., and Swan, J. E. (1989a), “Consumer • Copley, P. (2004), “Marketing Communications perceptions of interpersonal equity and satisfaction Management: Concepts and Theories, Cases and in transactions: A field survey approach”, Journal of Practices”, 1st edition, Butterworth-Heinemann. Marketing, Vol. 53, No. 1, pp. 21-35. • Hayes, S. C. (1998), Resisting biologism, The • Oliver, R. L., and Swan, J. E. (1989b), “Equity and Behaviour Therapist, Vol. 21, Iss. 1, pp. 95-97. disconfirmation perceptions as influences on merchant and product satisfaction”, Journal of • Parker, C. and Mathews, B. P. (2001) "Customer Consumer Research, Vol. 16, No. 1, pp. 372-383. satisfaction: contrasting academic and consumers’ interpretations", Marketing Intelligence & Planning, • Reichheld, F. F. (1996), The Loyalty Effect, Harvard Vol. 19 Iss: 1, pp. 38-44 Business School Press, Boston, Massachusetts. • Oliver, R. L. (1980), "A Cognitive Model of the • Zineldin, M. and Philipson, S. (2007) "Kotler and Antecedents and Consequences of Satisfaction Borden are not dead: myth of relationship marketing Decisions," Journal of Marketing Research, Vol. 17 and truth of the 4Ps", Journal of Consumer Marketing, No. 9, pp. 46-49. Vol. 24 Iss: 4, pp. 229-241 • Churchill, G. A., and Surprenant, C. (1982), "An • Yelkur, R. (2000) "Consumer perceptions of generic Investigation into the Determinants of Customer products: a Mexican study", Journal of Product & Satisfaction," Journal of Marketing Research, Vol. Brand Management, Vol. 9 Iss: 7, pp. 446-456 19 No. 9, pp. 491-504.

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GROUP DIFFERENCES IN THE SELECTION OF FAST FOOD RESTAURANT: A USE OF DISCRIMINANT ANALYSIS

Dr. M. B. M. Ismail1

Abstract There is a big argument of which marketing mix strategies are essential. Realizing this fact, this study also considers the selection of group in three types such as frequently selected group, selected group and infrequently selected group. This study attempts to know the significance difference exists between “frequently selected group”, “selected group” and “infrequently selected group” in terms of marketing mix of 8Ps and to develop optimal discriminate functions for “frequently selected group”, “selected group” and “infrequently selected group” in terms of marketing mix of 8Ps. This study collected data from 66 cloth marketers in ADSL. Data were collected during the second quarter of the 2015. Response rate was 79% of the issued questionnaire. This study adopted a non-probability sampling technique of convenience sampling. This study used a discriminate analysis as a new technique for selecting fast food restaurants. Descriptive statistics such as mean, standard deviation and coefficient of variation were used in this study. Wilky’s Lambda and discriminate functional analysis were also carried out in this study. Study found that frequently selected group, selected group and infrequently selected groups differ in terms of tangibles, number of radio advertisements made and number of separate packaging for different varieties in the first function and number of seals over the lunch packet and number of public events sponsored of the second function. Based on the results of the study, it is possible to develop two standardized canonical discriminate functions. Key words: Discriminate Analysis, Fast Food Restaurant, Group Differences, Selection.

Introduction values) followed by ambience and hygiene. Three There is an increasing trend that people are having their dimensions (service and delivery dimension, product food outside the home due to various reasons such as dimension, and quality dimension) of fast food outlets' working outside home, busy at home, quickness and attributes are identified based on factor analysis results. so on. This trend has been observed not only in Research studied have been conducted in developed developing countries but also in developed countries. A (USA and Canada) & developing countries (India) in fast comparative study has been conducted in USA and food industry during the last two decades. These studies Canada. Kara, Kaynak, and Kucukemiroglu (1997) differ in terms of country, time period and methodology. studied about marketing strategies for fast-food But, there are very few research studies in Sri Lanka. To restaurants from a customer point of view. fill this research gap, this study is conducted in Ampara District of Sri Lanka (ADSL) in 2015 using a discriminate In recent years, a major food consumption trend in the analysis. USA and Canada is that more people are eating more meals outside their homes. It is predicted that this trend Statement of the problem will accelerate in the future. As a result, fast-food markets Linda, Charles, and Robert (1997) studied about an will offer greater growth opportunities for marketers. evaluation of fast food restaurant satisfaction, Findings of the study offer need-oriented marketing determinants, competitive comparisons and impact on strategies for both franchisers and franchisees in the future patronage. Thus, this study identified product and US and Canadian fast-food sectors to enable them to price as the determinants of evaluating a fast food be more competitive in this fast-changing business restaurant. Selection of a fast food restaurant is not alone environment. Goyal, and Singh (2007) studied about dependent on product and price. There may be some consumer perception about fast food in India using an other factors of marketing mix to a wider area. Qin, exploratory study. This study seeks to estimate Victor, and Zhao (2010) studied about perceived service importance of various factors affecting the choice of fast quality in fast-food restaurants that is empirical evidence food outlets by Indian young consumers. Results from China. This study also found product and price as indicate that the young Indian consumer has passion the determinants of service quality of fast food restaurant. for visiting fast food outlets for fun and change but home Findings of this study also resemble those of the previous food is their first choice. They feel homemade food is study. Albeit, this study deviates from the previous study much better than food served at fast food outlets. They on the basis that is relied on SERVPERF instrument. have the highest value for taste and quality (nutritional Kara, Kaynak, and Kucukemiroglu (2014) studied about

1. Senior Lecturert, Faculty of Management and Commerce, South Eastern University of Sri Lanka, Oluvil

Special issue November 2015 Page 117 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 consumer preferences of fast-food outlets in the U.S. business. Alex, and Edwin (2000) studied about how and Canada which is a comparative study. This study restaurant features affect check averages in the Toronto emphasizes that marketing strategies are essential for Restaurant Market. Liu, and Chen (2000) studied about fast food restaurant. But, there is a big question of which fast food competition in the . Tripp, Karen, marketing mix strategies are essential. Is it in the form Carol, and Mary (1995) studied about factors influencing of the 4Ps, or 7Ps or 8Ps. Realizing this fact, proposed restaurant selection by travelers who stop at visitor study considers marketing mix strategies of 8Ps. This information centers. Auty (1992) studied about consumer study also considers the selection of group in three types choice and segmentation in the restaurant industry. such as frequently selected group, selected group and Research Design and Methodology infrequently selected group. This study is composed of a blended research design Research questions and objectives that covers both exploratory and conclusive research This study rises whether significance difference exists designs. Exploratory research is designed for stating between “frequently selected group”, “selected group” research problem. Following exploratory research and “infrequently selected group” in terms of marketing design, conclusive research is carried out. Descriptive mix of 8Ps and is it possible to develop optimal research is done as a part of conclusive research design. discriminate functions for “frequently selected group”, Single-cross sectional study is undertaken due to the “selected group” and “infrequently selected group” in fact that data are collected only once. terms of marketing mix of 8Ps. Thus, this study attempts Population and sample to know the significance difference exists between “frequently selected group”, “selected group” and Population refers to all the customers who visit Fast “infrequently selected group” in terms of marketing mix Food Restaurants in Ampara District of Sri Lanka (ADSL). of 8Ps and to develop optimal discriminate functions for This study collected data from 66 cloth marketers in “frequently selected group”, “selected group” and ADSL. They were asked about the factors for selecting “infrequently selected group” in terms of marketing mix fast food restaurants. A simple questionnaire was of 8Ps. designed to issue and collect the data using Final Year Undergraduates from Faculty of Management and Rationale of this study Commerce, South Eastern University of Sri Lanka. Data This study signifies in several ways. This study became were collected during the second quarter of the 2015. popular since long ago in different countries. There are Response rate was 79% of the issued questionnaire. number of studies in foreign countries in fast food Sampling technique restaurant. Kara, Kaynak, and Kucukemiroglu (1996) studied about positioning of fast-food outlets in two This study adopted a non-probability sampling technique regions of North America. Agnes, Law, Hui, and Zhao of convenience sampling. Researcher tried to collect the (2004) modeled the repurchase frequency and customer population size of the customers. But, it was impossible satisfaction for fast food outlets. Gilbert, Veloutsou, due to time constraint and accuracy of data. Mark, and Moutinho (2004) studied about measuring Analytical technique customer satisfaction in the fast food industry in a cross- Previous studies followed different analytical techniques. national approach of four English-speaking countries. But, this study used a discriminate analysis as a new Second, previous studies adopted different methodologies. technique for selecting fast food restaurants. Descriptive They adopted regression and factor analysis methods statistics such as mean, standard deviation and for their analysis. But, this study is a discriminant coefficient of variation were used in this study. Wilky’s analysis. Third, previous studies were conducted using Lambda and discriminate functional analysis were also SERVQUAL and SERVPERF instruments. But, this carried out in this study. SPSS with the version of 22.0 study is a quantified way of marketing mix. This study was used in this study. deviates from previous studies on the basis that the group is cascaded into three groups such as “frequently Results and Discussion of Findings selected group”, “selected group” and “infrequently Descriptive statistics selected group”. This is a three- group discriminate analysis. From the Outline of Review of Literature group statistics, it is understood that three groups such Tsai, Shih, and Jason (2007) studied about a comparison as frequently selected group, selecting group and of the service quality of fast food chain franchises. infrequently selecting group are separated in terms of Stevens, Knutson and Patton (1995) have presented a tangibles, number of radio advertisements made & DINESERV measurement scale for the restaurant number of separate packaging for different varieties and

Special issue November 2015 Page 118 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 number of seals over the lunch packet & number of public events sponsored. These variables have the lowest standard deviation of all. Mean and standard deviation of group statistics are revealed in Table 1. Table - 1: Mean and Standard deviation of Group Statistics

Group 1 Group 2 Group 3 Total

N N N N Selection of fast Std. Std. Std. Std. food restaurant Mean Deviation Mean Deviation Mean Deviation Mean Deviation number of seals 1 1 over the lunch 1.0000 .00000 1.4324 .50225 37 2.0000 .00000 1.4545 .50175 66 5 4 packet number of separate 1 1 packaging for 3.7333 .88372 3.8108 .93802 37 2.7857 .89258 3.5758 .99322 66 different varieties 5 4

price per parcel 1 1 2.2600E2 53.29165 2.4297E2 71.87431 37 2.1500E2 41.83300 2.3318E2 62.93242 66 5 4 discount per 1 1 18.3333 4.08248 19.5946 4.31058 37 17.8571 2.56776 18.9394 3.97252 66 parcel 5 4 number of free 1 1 1.7333 .79881 2.0270 .79884 37 1.5714 .51355 1.8636 .76231 66 rewards 5 4 number of leaflet 1 1 1.6933E2 47.72940 1.5351E2 43.60277 37 1.8143E2 56.13954 1.6303E2 48.03748 66 issued 5 4 number of radio advertisements 1 1 3.4667 .99043 3.2432 1.01120 37 1.9286 .82874 3.0152 1.11621 66 made 5 4

number of public 1 1 events 1.6000 .73679 2.2703 .73214 37 2.0000 .00000 2.0606 .69898 66 5 4 sponsored frequency of 1 1 2.0667E2 65.10065 2.1757E2 79.24664 37 2.1429E2 66.29935 2.1439E2 72.72982 66 smile at buyer 5 4 frequency of 1 1 1.7000E2 45.51295 1.7162E2 57.17971 37 1.9286E2 67.53103 1.7576E2 57.00366 66 nicely dressed 5 4 waiting time in 1 1 6.3333 4.41858 5.5135 2.11636 37 7.6429 4.89281 6.1515 3.49172 66 queue 5 4 tangibles 1 1 8.8000 1.85934 8.8108 2.66498 37 13.2143 2.19014 9.7424 2.98875 66 5 4 opening days 1 1 6.2667 .45774 6.4324 .50225 37 6.1429 .36314 6.3333 .47502 66 5 4

Structure matrix shows the correlation between individual predictors with the function. Structure matrix has two optimal functions. The first function orders tangibles, number of radio advertisements made, and number of separate packaging for different varieties respectively in the first three places. The second function orders number of public events sponsored, and number of seals over the lunch packet respectively in the first two places. Structure matrix is shown in Table 2. Table- 2 : Structure Matrix Function 12 Tangibles .336* -.118 Number of radio advertisements made -.266* -.026

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Number of separate packaging for different varieties -.199* .116 Frequency of nicely dressed .070* -.010 Number of public events sponsored .001 .540* Number of seals over the lunch packet .361 .472* Number of free rewards -.082 .236* Opening days -.087 .218* Number of leaflet issued .083 -.206* Discount per parcel -.057 .188* Price per parcel -.062 .164* Waiting time in queue .096 -.160* Frequency of smile at buyer .003 .077* Pooled within-groups correlations between discriminating variables and standardized canonical discriminate functions Variables ordered by absolute size of correlation within function. *. Largest absolute correlation between each variable and any discriminate function

Group centroids are the mean values for the discriminate scores for a particular group. In this study, there are three groups such as frequently selected group, selecting group and infrequently selecting group. There are three group centroids. Group centric for the first and second group in the first function is negative. This is because standard deviation for tangibles, number of radio advertisements made, and number of separate packaging for different varieties in the first function of the first group (frequently selected group) vary than those of second group (selecting group). Group centric for the third group in the first function is positive. This is because standard deviation for tangibles, number of radio advertisements made, and number of separate packaging for different varieties in the first function of the second group (selected group) declines from the second group to the third group (infrequently selecting group). Group centric for the first and third group in the second function is negative. This is because standard deviation for number of seals over the lunch packet and number of public events sponsored in the second function of the first and third group (frequently selected group and infrequently selected group) vary than those of second group (selecting group). Group centric for the second group in the second function is positive. This is because standard deviation for number of seals over the lunch packet and number of public events sponsored in the second function declines from the first to second group (frequently selected group to selected group). Group centroids are shown in Table 3. Table - 3 : Functions at Group Centroids

Selection of fast food Function restaurant 12 1 -1.617 -1.301 2 -.941 .596 3 4.218 -.183 Unstandardized canonical discriminate functions evaluated at group means Pooled within - group correlation matrices shows the correlation between predictors such as tangibles, number of radio advertisements made & number of separate packaging for different varieties in the first function and number of seals over the lunch packet & number of public events sponsored of the second function. Correlation between predictors is enough. Thus, there is no multi-collinearity problem. Table 4 shows the correlation between predictors.

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Table - 4 : Pooled Within-Groups Matrices

Number of Number of Number of Number of tangibles seals over separate radio public events the lunch packaging for advertisements sponsored packet different made varieties Number of seals over the 1.000 -.227 .306 .427 -.364 lunch packet Number of separate -.227 1.000 .167 -.284 -.054 packaging for different varieties Number of radio .306 .167 1.000 -.041 -.269 advertisements made Number of public events .427 -.284 -.041 1.000 .279 sponsored

tangibles -.364 -.054 -.269 .279 1.000

Tests of Equality of Group Means incorporate Wilky’s λ and F statistics. Wilky’s λ for each predictor is the ratio of the within- group sums of squares (SS residual/ SS error) to the total sums of squares (SSTotal). Thus, its value can vary between 0 to 1. The closer to the zero there may be different between three groups. In this study, values of Wilky’s λ for three predictors in the first function vary between 0.631 to 0.826. Specially speaking, tangibles, number of radio advertisements made and number of separate packaging for different varieties in the first function play an important role in determining the selection of fast food restaurant than other variables. Values of Wilky’s λ for three predictors in the second function vary between 0.555 to 0.847. Thus, number of seals over the lunch packet and number of public events sponsored of the second function also play an important role for determining the selection of fast food restaurant. Univariate F statistics for tangibles, number of radio advertisements made & number of separate packaging for different varieties in the first function and number of seals over the lunch packet & number of public events sponsored of the second function are 18.412, 11.394 & 6.634 and 25.261 & 5.692 with degrees of freedom 2 and 63 respectively. Df1 is the degree of freedom for numerator. This is C – 1 that equals 2 (3 - 1) for all predictors. Df2 is the degrees of freedom for denominator. This is n – k -1 that equals 63 for all predictors. p (sig.) values for tangibles, number of radio advertisements made and number of separate packaging for different varieties in the first function and number of seals over the lunch packet and number of public events sponsored of the second function are less than 0.05. Thus, these predictors significantly differentiate between three groups such as frequently selected group, selected group and infrequently selected groups. Tests of Equality of Group Means are shown in Table 5. Table - 5 : Tests of Equality of Group Means

Wilks' Lambda F df1 df2 Sig. Number of seals over the lunch packet .555 25.261 2 63 .000 Number of separate packaging for different .826 6.634 2 63 .002 varieties Price per parcel .965 1.134 2 63 .328 Discount per parcel .963 1.205 2 63 .307 Number of free rewards .935 2.173 2 63 .122 Number of leaflet issued .942 1.936 2 63 .153 Number of radio advertisements made .734 11.394 2 63 .000 Number of public events sponsored .847 5.692 2 63 .005 Frequency of smile at buyer .996 .117 2 63 .890

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Frequency of nicely dressed .975 .799 2 63 .454 Waiting time in queue .941 1.972 2 63 .148 Tangibles .631 18.412 2 63 .000 Opening days .936 2.152 2 63 .125

Canonical Discriminate Functions shows the eigenvalues. Since there are three groups (frequently selected group, selected group and infrequently selected group) two discriminate functions are estimated. The eigenvalue of these two discriminate functions are 5.097 and 0.619 respectively and they both explain 100 percent of the explained variance. The higher eigenvalue is the more better. Canonical correlations associated with these discriminate functions are 0.914 and 0.618. The square of these correlations are equal 0.835396 and 0.381924 which indicates around 84% and 38% of the variance in the dependent variable (selection of fast food restaurant) is explained by these models that consist of tangibles, number of radio advertisements made and number of separate packaging for different varieties in the first function and number of seals over the lunch packet and number of public events sponsored of the second function. Of these two functions, the first function plays an important role the second function. Thus, there is a research gap for finding the remaining 16 % and the 38% of the variance in the selection of fast food restaurant that is accounted by one or more unknown predictors. Canonical Discriminate Functions are depicted in Table 6. Table - 6 : Eigenvalues of Canonical Discriminate Functions

Function Eigenvalue % of Variance Cumulative % Canonical Correlation 15.097a 89.2 89.2 .914 2 .619a 10.8 100.0 .618 a. First 2 canonical discriminant functions were used in the analysis.

Hypothesis testing and Wilks' Lambda Researcher set the hypothesis of testing whether group means are equal. Hypotheses are stated as denoted below. Null hypothesis: Means of all discriminate functions in all groups are not different i.e. group means are equal. Alternative hypothesis: Means of all discriminate functions in all groups are different i.e. groups means are not equal. Wilks' Lambda is used to test the null hypothesis that means of all discriminate functions in all groups are different. Value of Wilks' Lambda is 0.101 and 0.618 for function 1 and 2 which are estimated on the basis of the Chi- square transformation and degrees of freedom. In this study, Wilks' Lambda is significant with the Sig. values of 0.000 and 0.007 respectively. p value (Sig. value) is less than significance level (5%). Thus, researcher rejects null and do not reject alternative hypothesis. Accepting alternative hypotheses refers to means of all discriminate functions in all groups are different. Frequently selected group, selected group and infrequently selected groups differ in terms of tangibles, number of radio advertisements made and number of separate packaging for different varieties in the first function and number of seals over the lunch packet and number of public events sponsored of the second function. Values of Wilks' Lambda, Chi- square, degrees of freedom and Sig. values are tabulated in Table 7. Table - 7: Wilks' Lambda

Test of Function(s) Wilks' Lambda Chi-square df Sig. 1 through 2 .101 130.512 26 .000 2 .618 27.468 12 .007

Discriminate model Based on the results of the study, standardized canonical discriminate function can be formulated using standardized canonical discriminate function coefficient that is shown in Table 8.

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Table - 8 : Standardized Canonical Discriminant Function Coefficients

Function 12 Number of seals over the lunch packet 1.300 .600 Number of separate packaging for different varieties -.054 .479 Price per parcel -.223 .172 Discount per parcel .060 -1.965 Number of free rewards .003 2.186 Number of leaflet issued .074 -.152 Number of radio advertisements made -.638 -.127 Number of public events sponsored -.675 .902 Frequency of smile at buyer -.301 -.481 Frequency of nicely dressed -.022 .067 Waiting time in queue .156 .480 Tangibles .876 -.284 Opening days -.314 .212

This study formulated two standardized canonical first function vary between 0.631 to 0.826. Specially discriminate functions that are denoted in Formula (01 speaking, tangibles, number of radio advertisements made and number of separate packaging for different and 02). varieties in the first function play an important role in D = 0.876 Tangible + (- 0.638) Number of radio determining the selection of fast food restaurant than advertisements made + (-0.054) Number of separate other variables. Values of Wilky’s ? for three predictors packaging for different varieties………………… in the second function vary between 0.555 to 0.847. ……………….………..Formulae (01) Thus, number of seals over the lunch packet and number of public events sponsored of the second function also D = 0.600 Number of seals over the lunch packet + 0.902 play an important role for determining the selection of Number of public events sponsored …………...... fast food restaurant. Univariate F statistics witnessed ...... Formulae that p (sig.) values for tangibles, number of radio (02) advertisements made and number of separate packaging for different varieties in the first function and number of Conclusions seals over the lunch packet and number of public events Results of the descriptive statistics revealed that three sponsored of the second function are less than 0.05. groups such as frequently selected group, selecting Thus, these predictors significantly differentiate between group and infrequently selecting group are separated in three groups such as frequently selected group, terms of tangibles, number of radio advertisements made selected group and infrequently selected groups. & number of separate packaging for different varieties Canonical Discriminate Functions revealed that around and number of seals over the lunch packet & number of 84% and 38% of the variance in the dependent variable public events sponsored. These variables have the lowest (selection of fast food restaurant) is explained by these standard deviation of all. In terms of the structure matrix, models that consist of tangibles, number of radio the first function orders tangibles, number of radio advertisements made and number of separate packaging advertisements made, and number of separate packaging for different varieties in the first function and number of for different varieties respectively in the first three places. seals over the lunch packet and number of public events The second function orders number of public events sponsored of the second function. Of these two sponsored, and number of seals over the lunch packet functions, the first function plays an important role the respectively in the first two places. Tests of Equality of second function. Thus, there is a research gap for finding Group Means incorporate Wilky’s ? and F statistics the remaining 16 % and the 38% of the variance in the found that values of Wilky’s ? for three predictors in the

Special issue November 2015 Page 123 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 selection of fast food restaurant that is accounted by • Linda, S. P., Charles, E. P. and Robert, H. L. (1997), one or more unknown predictors. In this study, Wilks' “An Evaluation of Fast Food Restaurant Satisfaction, Lambda is significant with the Sig. values of 0.000 and Determinants, Competitive Comparisons and Impact 0.007 respectively. p value (Sig. value) is less than on Future Patronage”, Journal of Restaurant & significance level (5%). Thus, researcher rejects null and Foodservice Marketing, Vol. 2, Iss. 3, pp. 3-20. do not reject alternative hypothesis. Accepting alternative • Qin, H., Victor, R. P. and Zhao, Q. (2010) "Perceived hypotheses refers to means of all discriminate functions service quality in fast-food restaurants: empirical in all groups are different. Frequently selected group, evidence from China", International Journal of Quality selected group and infrequently selected groups differ & Reliability Management, Vol. 27 Iss: 4, pp.424– in terms of tangibles, number of radio advertisements 437. made and number of separate packaging for different • Agnes K.Y. Law, Y.V. Hui, and Zhao, X. (2004) varieties in the first function and number of seals over "Modelling repurchase frequency and customer the lunch packet and number of public events sponsored satisfaction for fast food outlets", International Journal of the second function. Based on the results of the study, of Quality & Reliability Management, Vol. 21 Iss: 5, two standardized canonical discriminate functions have pp. 545–563. been formulated using standardized canonical • discriminate function coefficients that are: D = 0.876 Gilbert, G. R., Veloutsou, C., Mark, M. H. G., and Tangible + (- 0.638) Number of radio advertisements made Moutinho, L. (2004) "Measuring customer satisfaction + (-0.054) Number of separate packaging for different in the fast food industry: a cross-national approach", varieties and D = 0.600 Number of seals over the lunch Journal of Services Marketing, Vol. 18 Iss: 5, pp. 371– packet + 0.902 Number of public events sponsored. 383. • Tsai, M. C., Shih, K. H., and Jason, C. H. C. (2007), Limitations of this study and future research venues “A comparison of the service quality of fast food chain This study is geographically limited to geographical franchises’, International Journal of Services and coverage of ADSL. This study may be extended to island- Standards, Vol. 3, Iss. 2, pp. 1-10. wide. Researcher used a non- probability sampling • Stevens, A., Knutson, B., and Patton, C. (1995), “A technique of convenience. Study may be conducted using comparison of the service quality of fast food chain probability sampling technique. Sample size may be franchises’, International Journal of Services and limited to 66. When selecting a probability sampling Standards, Vol. 3, Iss. 2, pp. 1- 10. technique, sample size may be taken in a higher number. • Alex, M. S., and Edwin, K. C. (2000), “How restaurant References features affect check averages: A study of the Toronto • Kara, A., Kaynak, E., and Kucukemiroglu, O. (1997) Restaurant Market”, The Cornell Hotel and Restaurant "Marketing strategies for fast-food restaurants: a Administration Quarterly Vol. 41, Iss. 6, pp. 56–63. customer view", British Food Journal, Vol. 99 Iss: 9, • Liu, C. M., and Chen, K. J. (2000) "A look at fast pp. 318-324. food competition in the Philippines", British Food • Goyal, A., and Singh, N. P. (2007) "Consumer Journal, Vol. 102 Iss: 2, pp.122-133. perception about fast food in India: an exploratory study", British Food Journal, Vol. 109 Iss: 2, pp.182- 195.

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A STUDY OF WORKING ENVIRONMENT FOR SCHOOL TEACHERS

Dr. M. B. M. Ismail1

Abstract Working environment refers to the conditions in which they must teach and their students are obliged to learn. There are facilities for school teachers in Schools in Ampara District, Eastern Province of Sri Lanka. A good working environment is a must for school teachers in this regard. This study attempts to categories the factors for working condition. This study collected data from 69 teachers using convenient sampling method. Data are collected from questionnaire using Undergraduates of Faculty of Commerce and Management, South Eastern University of Sri Lanka during the period of 2015. Results revealed that value of Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 0.530. Extracted communalities for sickness, absenteeism, trouble with teachers, problem with principal, issue with family, number of subjects taught, free subject coverage, teaching aids, learning material, starting time, interval time, finishing time and adequate staff are greater than 0.6. The first six factor components represent around 77% of the total variance. It was fund that ,based on the results of the factor score, factors are categorized into general working environmental factors, physical working environmental factors and social working environmental factors. Considering the above categorization, a model for working environment for school teachers has been developed in this study. Key words: School teachers, working environment.

Introduction Statement of the problem Working environment refers to the conditions to which Problem is defined using previous research findings. A teachers comply with. In other words, working number of research findings gave different factors for environment refers to the conditions in which they must working environment for teachers. Recent case studies teach and their students are obliged to learn. Research and media reports portray high-poverty, high-minority attentions have been paid to working conditions and schools that are not hard to staff, but actually attract school teachers. School teachers might contribute to and retain good teachers, suggesting that those schools students’ learning at schools. Several convincing studies provide the conditions and supports that teachers need identified that the teacher as the most important school- to succeed with their students—whoever those students level factor in students’ achievement. The contribution may be (Chenoweth, 2007, 2009; Dillon, 2010; Ferguson, of teachers was shown to be especially important for Hackman, Hanna, & Ballantine, 2010; Johnson & low-income students, who tend to have fewer learning Birkeland, 2003). In addition to this, recent large-scale supports outside of school. quantitative studies provide further evidence that teachers choose to leave schools with poor work environments Also, researchers found that the effectiveness of teachers and that these conditions are most common in schools varies widely, even within the same school (McCaffrey, that minority and low-income students typically attend Koretz, Lockwood, & Hamilton, 2004; Rivkin, Hanushek, (Borman & Dowling, 2008; Boyd et, al., 2011; Ladd, 2009, & Kain, 2005; Rockoff, 2004). In response to these 2011; Loeb, Darling-Hammond, & Luczak, 2005). widely discussed findings, many state and district Although the mounting evidence suggests that the officials of different countries sought to recruit only the working condition play vital role for teachers studies most promising teachers and to retain only the most found different findings i.e. different factors for working effective ones. Thus, working conditions for teachers have environment and factors found differ country to country. to be maintained continuously in all countries. School Studies highlight that the working conditions for school education is in good condition in Sri Lanka. There are teachers are important. But, these studies failed to adequate facilities for school teachers in Schools in indicate the categories of working conditions in their findings. Ampara District, Eastern Province of Sri Lanka. School education is the base for University level education. A Research question and objective good working environment is a must for school teachers Taken into account of this research gap, this study raises in this regard. Realizing this fact, this study is “what are the categories of working conditions?” as a undertaken in Ampara District, Eastern Province of Sri research question. To answer this research question, Lanka. this study attempts to categorize the factors for working condition.

1. Senior Lecturer, Faculty of Management and Commerce, South Eastern University of Sri Lanka, Oluvil

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Review of Literature research whereas findings are refined by conclusive The conditions in which teachers work matter a great research. Since this study collects data only once from deal to them and, ultimately, to their students. Teachers sample respondents it is a cross sectional study. are more satisfied and plan to stay longer in schools Population and sample that have a positive work context, independent of the Population refers to all the teachers in all schools in school’s student demographic characteristics. Ampara District, Sri Lanka. Number of Government Furthermore, although a wide range of working conditions schools in island wide is 10012. There are 1074 schools matter to teachers, the specific elements of the work in Eastern Province. There are 425 schools in Ampara environment that matter the most to teachers are not District. 226983 teachers work island wide. There are narrowly conceived “working conditions” such as clean 20961 teachers in Eastern Province. 8972 teachers work and well-maintained facilities or access to modern in Ampara District. They are shown in Table 1. This study instructional technology. Instead, it is the social tried to collect sampling frame for making probability conditions—the school’s culture, the principal’s sampling. But, it was difficult to collect. Thus, this study leadership, and relationships among colleagues—that collected data from 69 teachers using convenient predominate in predicting teachers’ job satisfaction and sampling method. career plans. As Bryk and his colleagues have documented, improving these social conditions involves Table - 1 : Population and sample building relational trust between teachers and school Eastern Ampara Islandwide leaders and engaging teachers in co-constructing the Province District social context of their work (Bryk & Schneider, 2002; Bryk, Sebring, Allensworth, Luppescu, & Easton, 2010). Number of 10012 1074 425 schools Studies have found that in the field of teaching, general working conditions can be quite ideal. In fact, the working Number of 226983 20961 8972 conditions of teachers such as the convenience of most teachers school hours and having summer vacations have always contributed to the appeal of the teaching profession. Data collection However, there is a downside to the working conditions Data are collected from questionnaire using Undergraduates which prospective teachers must consider. Working of Faculty of Commerce and Management, South conditions for teachers such as stress, physical strain Eastern University of Sri Lanka during the period of 2015. on body of teachers, intense work cycles, a large amount Data analysis of duties and inappropriate work hours affect job Data are analyzed using descriptive statistics and satisfaction which, in turn, affect job performance. principal component factor analysis using Varimax A number of studies regarding working condition for Rotation. All these analyses are carried out by SPSS teachers have been conducted long ago. Studies revealed with the version of 22. that good training and opportunities for continued Results and Discussion of Findings learning, quality teaching is dependent on the environment in which teachers work. Talented, well- Descriptive Statistics trained teachers are most effective in environments that Descriptive Statistics such as mean and standard support their work and professional growth. Results of deviation are used in this study. Average number of times the survey indicate that in many respects, teachers do fallen in sickness and ill-health (body weakness) are view their work environments as supportive. Most 2.0290 and 1.7536 with standard deviation of 1.58087 teachers in 1998 felt supported by the school and 0.91404. Mean number of times troubling with administration and felt that school goals and priorities teachers, problem with principal and issue with family were clear. Survey also indicates aspects of teachers' are 1.9710, 4.4638 and 4.9275 with standard deviation work environments that could be improved. One-third of of 1.08426, 2.36755 and 2.45739. Average number of teachers in 1998 agreed strongly that parents support subjects taught, free subject coverage, teaching aids their efforts to educate the parents' children, with and learning material are 58.5072, 62.2609, 55.0725 and elementary school teachers perceiving greater support 49.2609 with standard deviation of 18.72292, 14.45546, from parents than high school teachers. 15.58876 and 7.49834 respectively. Average starting Research Design and Methodology time, interval time, finishing time and number of staff (adequate) are 64.4928, 65.9275, 66.1159 and 60.1594 This study is a combination of both exploratory and with standard deviation of 12.55180, 9.01521, 7.39343 conclusive research. Problem is defined by exploratory and 11.10859. Results of the descriptive statistics are shown in Table 1.

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Table - 2 : Descriptive Statistics

Kaiser-Meyer-Olkin Measure of Sampling Adequacy and Bartlett's Test of Sphericity Value of Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 0.530. This refers to sample taken in this study is sufficient. Bartlett's Test of Sphericity is considered by Chi- square. In this study, Approx. Chi-Square is 224.649. Degrees of freedoms are 78. Chi- square is significant. Table 2 shows the values of KMO and Bartlett's Test. Table - 3 : KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.530 Bartlett's Test of Sphericity Approx. Chi-Square 224.649 df 78 Sig. .000

Communalities Off period time is removed from the analysis since it has the extracted communality value of 0.540. Initial communalities for sickness, absenteeism, trouble with teachers, problem with principal, issue with family, number of subjects taught, free subject coverage, teaching aids, learning material, starting time, interval time, finishing time and adequate staff are 1. Extracted communalities are 0.675, 0.778, 0.724, 0.790, 0.771, 0.768, 0.780, 0.769, 0.889, 0.702, 0.748, 0.826 and 0.729 respectively. Initial and extracted communalities are shown in Table 3. Table - 3 : Communalities Initial Extraction Sickness 1.000 0.675 Absenteeism 1.000 0.778 Trouble with teachers 1.000 0.724 Problem with principal 1.000 0.790 Issue with family 1.000 0.771 Number of subjects taught 1.000 0.768 Free subject coverage 1.000 0.780 Teaching aids 1.000 0.769 Learning material 1.000 0.889

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Starting time 1.000 0.702 Interval time 1.000 0.748 Finishing time 1.000 0.826 Adequate staff 1.000 0.729 Extraction Method: Principal Component Analysis. Total Variance Explained All these 13 variables compose 13 factor components. But, the first six factor components represent around 77% of the total variance. Thus, these six factor components are the best factor components. Extraction sums of squared loadings and rotation sums of squared loadings reveal these values. Total variance is shown in Table 4. Table - 4: Total Variance Explained

Screen plot is a diagrammatical illustration for total variance is explained in Figure 1.

Fig. 1 : Screen plot

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Factor score Factor score is calculated by multiplying factor loadings into component score coefficient. Factor score is shown in Table 5. Table - 4 : Factor score

Based on the factor score, factors are categorized into general working environmental factors, physical working environmental factors and social working environmental factors. Categorization of factors is shown in table 5. Table - 5 : Categorization of factors

Items Component Categorisation of factors Free subject coverage 1 General working environment Starting time General working environment Number of subjects taught 2 General working environment Finishing time General working environment sickness 3 Physical working condition absenteeism Physical working condition Teaching aids General working environment Interval time 4 General working environment Adequate staff General working environment Issue with family 5 Social working environment Learning material General working environment Trouble with teachers 6 Social working environment Problem with principal Social working environment

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Categorization of factors and model development Limitations and further research venues Based on the above categorization, the following model This study considered only government schools in can be developed for working environment for school Ampara District, Eastern Province of Sri Lanka. Sample teachers. Developed model is shown in Figure 2. size is limited to 69 which may not be sufficient. Findings are applicable to Government schools only. Therefore, future researchers can remove these limitations to Physical working improve this study. condition References

Social working Working environment • Borman, G. D., & Dowling, N. M. (2008) Teacher environment for school teachers attrition and retention: A meta-analytic and narrative review of the research. Review of Educational Research, 78, 376–409. General working environment • Boyd, D., Grossman, P., Ing, M., Lankford, H., Loeb, S., & Wyckoff, J. (2011). The influence of school administrators on teacher retention decisions. Fig. 2 : Factor categorization and model development American Educational Research Journal, 48, 303– 333. Conclusion • Bryk, A., & Schneider, B. (2002). Trust in schools: A Results of the descriptive statistics showed that average core resource for improvement. New York: Russell number of times fallen in sickness and ill-health (body Sage Foundation. weakness) are 2.0290 and 1.7536 with standard deviation of 1.58087 and 0.91404. Mean number of times troubling • Bryk, A., Sebring, P. B., Allensworth, E., Luppescu, with teachers, problem with principal and issue with S., & Easton, J. (2010). Organizing schools for family are 1.9710, 4.4638 and 4.9275 with standard improvement: Lessons from Chicago. Chicago: deviation of 1.08426, 2.36755 and 2.45739. Average University of Chicago Press. number of subjects taught, free subject coverage, • Chenoweth, K. (2007). “It’s being done”: Academic teaching aids and learning material are 58.5072, 62.2609, success in unexpected schools. Cambridge, MA: 55.0725 and 49.2609 with standard deviation of 18.72292, Harvard Education Press. 14.45546, 15.58876 and 7.49834 respectively. Average • Dillon, S. (2010, September 27). 4100 students prove starting time, interval time, finishing time and number of “small is better” rule wrong. New York Times, p. 1. staff (adequate) are 64.4928, 65.9275, 66.1159 and • Ferguson R., Hackman, S., Hanna, R., & Ballantine, 60.1594 with standard deviation of 12.55180, 9.01521, A. (2010, June). How high schools become 7.39343 and 11.10859. Results of the factor analysis exemplary: Ways that leadership raises achievement revealed that value of Kaiser-Meyer-Olkin Measure of and narrows gaps by improving instruction in 15 public Sampling Adequacy is 0.530. This refers to sample high schools. Achievement Gap Initiative at Harvard taken in this study is sufficient. Bartlett's Test of University, Cambridge, MA. Sphericity is considered by Chi- square. In this study, Approx. Chi-Square is 224.649. Degrees of freedoms • Johnson, S. M., & Birkeland, S. E. (2003). Pursuing are 78. Chi- square is significant. Extracted a “sense of success”: New teachers explain their communalities for sickness, absenteeism, trouble with career decisions. American Educational Research teachers, problem with principal, issue with family, Journal, 40, 581–617. number of subjects taught, free subject coverage, • Ladd, H. (2009). Teachers’ perceptions of their teaching aids, learning material, starting time, interval working conditions: How predictive of policy relevant time, finishing time and adequate staff are greater than outcomes? (Working Paper No. 33). Washington, DC: 0.6. All these 13 variables compose 13 factor National Centre for Analysis of Longitudinal Data in components. But, the first six factor components Education. Retrieved March 2, 2011, from http:// represent around 77% of the total variance. Thus, these www.urban.org/uploadedpdf/1001440-Teachers- six factor components are the best factor components. Perceptions.pdf It is found that, on the basis of the factor score, factors • Ladd, H. (2011). Teachers’ perceptions of their working are categorized into general working environmental conditions: How predictive of planned and actual factors, physical working environmental factors and teacher movement? Educational Evaluation and social working environmental factors which are then Policy Analysis, 33, 235–261. modeled into model for working environment for school teachers.

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• Loeb, S., Darling-Hammond, L., & Luczak, J. (2005). • Rivkin, S., Hanushek, R., & Kain, J. (2005). Teachers, How teaching conditions predict teacher turnover in schools, and academic achievement. Econometrica, California schools. Peabody Journal of Education, 73, 417–458. 80(3), 44–70. • Rockoff, J. E. (2004). The impact of individual • McCaffrey, D., Koretz, D., Lockwood, J. R., & teachers of student achievement: Evidence from panel Hamilton, L. (2004). Evaluating value-added models data. American Economic Review, Papers and for teacher accountability. Santa Monica, CA: RAND. Proceedings, 94, 247–252.

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A STUDY ON CUSTOMER AWARENESS ON GREEN INITIATIVES WITH SPECIAL REFERENCE TO SELECTED PRIVATE SECTOR BANKS IN ERNAKULAM

Dr. Prakash Pillai 1 Mr. Praveen Raj.D2 Abstract Green banking initiatives taken by Banks or the concept of Green banking means by effectively using the bank’s resources with responsibility and care by avoiding waste and giving priority take environmental sustainability into credit of the organization . It also means promoting environmental-friendly practices and reducing the carbon footprint from banking operations. Green banking strategies describes how the banking business to be conducted in such a manner that helps the overall reduction of external carbon emission and internal carbon footprint. Nobody think about banking is a polluting industry, but the present style of banking operations have considerably increasing the carbon footprint of banks due to their massive use of energy like lighting, air conditioning, lack of green buildings electronic/electrical equipments, high wastage of Paper etc .The study made an attempt to understand the awareness level of customers regarding Green banking initiative taken by various Private sector banks in India, with special reference to Ernakulam. The study makes an attempt to understand awareness of bank employees and customers as regards to green banking concept in private sector banks. It is also required to identify different green initiatives taken by the banks in order attract customer by giving user friendly products. Key words: E-Banking, Green Banking Initiatives, Green Banking strategies, Customer awareness,

Introduction Overall green banking is really a good way for people to The main objective of green banking is to use the get more awareness about global warming; each resources in favor of the society and environment. They businessman will contribute a lot to the environment and provide financial assistance to many green projects make this earth a better place to live which also ensures the economic growth of the country. Green Banking Methods Banks are also promoted different green banking E- Statements: This is the emerging method of sending products for the benefit of environment. bank statement in the form of Electronic mail. Now a These products include ATM and CDMs, Green Channel day’s almost all the banks giving this facility to all its Counters, POS, E- banking, Credit Card and Debit Card customers free of cost .which will drastically reduce the Transactions, E-statements. usage of paper and operating time of employees for When banks conduct green banking activities in large preparing these statements. Which also reduces the platform, the customers will also be interested to conduct storage space for records since all these statements their activities with them which will result in better electronically saved. financial performance for banks The Green initiatives Mobile banking : Mobile banking is one of the effective taken by Banks using all of the bank’s resources with platforms that we can effectively use by customers and responsibility and care to limit wastage and giving priority act as part of green banking initiatives undertaken by to various choices that take sustainability into account. banks. Which setting up direct deposit to receive your Financial industry plays a major role in promoting paychecks, receiving electronic statements from your environmentally sustainable and socially responsible bank and online bill payment .Which encourages the investments as it increases the images of the bank and bank? better performance. The concept of green banking helps To go green and help the environment. All of these steps to create a cleaner and greener future as Green Banking can drastically reduce the amount of paper during has a direct impact on the environment .Green initiatives banking transaction. Both mobile banking and Online also gives more weight to environmental factors which banking are highly effective ways to track the finances influences the business.. Its aim is to provide good and to avoid late payment .Now a day’s almost all the environmental and social business practices. banks come out different mobile application to perform

1. Head Dept of Personnel Management, Loyola College of Social Science, Trivandrum. 2. Research Scholar, Bharathiar University, Coimbatore.

Special issue November 2015 Page 132 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 different banking activities which is really useful for the conditioning work. Which will improve the green initiatives customers those who are using mobile banking. of banks and also for the sustainability of environment? Use of Direct Deposit : Now a day’s bank account is Eco –friendly Generators : In olden days all the banks must for all most all employees and the payment of are equipped with petrol or kerosene Type Generators salary through bank account only, many of the those generators polluting the environment in a large employees arranging the facilities like Paycheck through extent and create noise pollution also. Now a day’s electronically and ATM cards. This will make the Banks like SBI, SBT, ICICI banks are purchasing and transaction easier and also reducing the operating cost. installing only eco friendly higher energy efficient Diesel This will effectively saves the time operation by avoiding generators. travel to bank, Paper, Avoiding paper work of employees Literature Review in the bank etc. Bahl, Sarita (2012), conducted an empirical study Green Online Bill Payments : Banks and all retailers Banking- The new Strategic Imperative on public sector encouraging their customers to pay the bill electronically banks and collected manager’s views on green banking now it is the part of life style of people especially among financial products, carbon footprint reduction by youths. The payment of bills includes Telephone bills, paperless banking, and carbon footprint reduction by mobile recharge, utility bills, credit card payments and energy consciousness, green building and social various application fees for competitive exams can all responsibility services. She found that carbon footprint be paid in the form of online payment. We can say that reduction by green building had been given top priority now a day’s many online banking customers have already in green banking strategies. thrown their traditional kind of cheque books and make use of online payments facilities. Yadav and Pathak (2013) conducted a study on Green Banking initiatives implemented by private and public Net Banking : Net banking facility is one of the most bank for sustainable environment. They concluded that popular method green banking technology performed by Indian banks were under stod the Importance for taking the banks for different banking. All most all the banks initiatives environmental sustainability. Result of the study having core banking facility provides this service free of conducted stating clearly that that public sector banks cost to its customers .which I will reduce the operating have taken more initiatives as compared private sector cost of banks drastically and which can perform in general. throughout the day. Kumar Sudesh and Anjum Bimal (2014) conducted a Credit and Debit Cards : The service offered by Credit study on customer satisfaction on E- banking and made card and debit card can be used for making the payment a conclusion that E-banking technology can overcome of various expenses without caring the money with the the traditional style business of retail banking and able customers. This will increases the security of customers to reduce the processing and operational cost , E- during traveling by avoiding carrying of huge amount of banking is the emerging technology which providing their currencies with them. customers to conveniently do their banking transactions Electronic Fund Transfer : Transfer of fund through at a time that make them and can access their bank electronically is known as electronic fund transfer (EFT), account for 365 days. Better ways of customer services uses computer and electronic technology as a substitute are essential for the growth of a banking industry. The for checks and other paper transactions in banks . Most effect of e-banking facilitate the existing banking and of the banks providing this facility as optional along with payment mechanisms, cheaper transactions, faster Online or ATM facilities to their customers who are delivery channel, more secure, and more convenient way performing large amount of fund transfer continuously of operation. Use of Higher efficient lights : Now the banks are Naidu Kanchana and Paramasivan (2015) stated in the using only higher efficiency T5 series light or Led fitting study that the concept Green Banking will be mutually in the banks to saves the energy so as to reduce the beneficial to the industries, economy and banks. This cost operation. Banks are advised their employees to ensures the greening of the industries and also facilitate switch off the light fan which are not required. in improving the different asset quality of the banks for future business. Green banking is really a good way for Higher efficiency Air-conditioners : Air-condition of customers to get more awareness about sustainability branches are very common in almost all part of country, and crate awareness on each business to contribute a different gases emitted from this is hazards to lot to the environment and make the environment more environment. Now day’s banks are using higher sustainable. efficiency eco friendly air-conditioners for bank air-

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Bhal (2012) explains the means of creating awareness To find out the level of awareness of costumer’s in about Green Banking to ensure sustainable growth. They Ernakulam about green banking. used Garrettt’s ranking technique to analyze the different To analyze the satisfaction level of the customer towards strategies with regards to Green Banking. They clearly green Banking Technologies. stated after the study that If the sustainable development To identify the awareness level of the customers about of environment can be attained only through creating Green Banking policies awareness and educate the entire stake holders about green initiatives. Hypothesis Jha and Bhome (2013) conducted study a to check the The hypothesis framed for the study is there is no consumer awareness on Green Banking and they significant relationship between the demographic profile explains certain steps to be needed to implement strongly of the customers and their awareness about green in Green Banking technology for strengthening it . Online Banking initiatives Banking, Green Checking Accounts (ATM, Special Touch Demographic profile of customers Screens), Green loans for the benefit of environment During the research period researcher made an attempt friendly residential projects, power saving equipments, to analyze the awareness level of the customers about Saving of Paper ,Mobile Banking are among few steps the green banking initiatives taken by the banks .The suggested by them after their study. Green Banking null hypothesis framed for the purpose is there is no will also ensure organization’s move towards more significant difference between the demographic profile sustainable environment of the customers and their awareness level of green Sharma, Gopal (2014) made an attempt to study the initiatives of the banks. level of consumer awareness of Green Banking initiative ANOVA Analysis is performed to test the hypothesis in India with special reference to Mumbai. From the and the results obtained is describing in the table below survey they conducted and found that those people who are using online facilities provided by respective banks Table - 1 nearly three fourth of them are unaware of the term Green Variables Tested value Inference Banking even though they are using the facilities offered by green technology . They also found that among those Gender 0.071 accepted who are aware of Green Banking technology believes Education 0.043 rejected that it’s mainly related to only online bill payment and various cash transaction services. Age 0.034 rejected Research Methodology Income 0.684 accepted This paper is based on descriptive study conducted Job 0.748 accepted among the customers of private sector banks in The above table describes test result of Anova analysis, Ernakulam about their awareness on green banking the calculated value for the variables other than age and Technology .For this structured questionnaire was framed education are greater than 0.05 is acceptable. So the and is used to collect the primary data for the study. hypothesis is rejected for the variable education and age. The data were analyzed with the help of statistical tools So we can conclude that the awareness level of like percentage analysis and Anova. customers towards green banking initiatives differ with Data Collection respect to their educational qualification and age their Data collection method of the study is primary data age factor and all other factors have no influence over collection. The data collected directly from the sample the awareness level of green initiatives in banks. respondents through by questionnaire from the Green Initiatives of Banks and its awareness among their customers of private sector banks in Ernakulam. customers (Table - 2) Respondent having sound educational background with By critically analyze the above data, We can conclude a degree of awareness with reference to green products that that green initiatives like, Concession for eco-friendly were targeted and approached for the study. The business, Solar Powered ATMs, recycling of used items convenient sampling method is used for the study and are emerging green banking initiatives that are not the sample size taken as 100 numbers. properly promoted by the respective banks according Objectives of the study to the customers participated in the survey. 68% of the The main objectives of the study are as follows: customers are not aware about the environmental policy of the banks .This clearly states that banks are not properly disclose their environmental policy to the

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Table - 2 : Green Initiatives of Banks and its awareness among their customers

Not aware Si No Green Banking Steps Aware (%) (%) 1 Controlled use of energy for energy saving 62% 38%

2 Facility for e-statements 67% 33% 3 Reduced wastage of papers with the use of Net banking facilities 62% 38%

4 Use of Solar powered ATMs in remote centers 24% 76% 5 Energy – efficient lighting in branches and offices 64% 36% 6 Providing recyclable debit cards and credit cards to customers 47% 53%

7 Higher efficiency air-conditioning system 68% 32% 8 Usage of recycle paper or recycle waste 34% 66% 9 Fund Transfer through ATM and CDM 71% 29% 10 Workshops and Seminars about Green banking conducted by banks 27% 73%

11 Banks Environmental Policy 32% 68% 12 Energy savings/operation cost through Net banking approach 64% 36%

13 Online Bill Payment facilities offered by banks 74% 26% 14 Concession for eco friendly business 38% 62% customers However, these concepts are new in India initiatives like, Concession for eco-friendly business, may be a probable reason for poor awareness level Solar Powered ATMs, recycling of used items are the among consumers. But when we compare the awareness emerging green banking initiatives that are not properly level of the factor seminar and workshops organized by promoted by the respective banks .Green initiatives in banks, we can come to a conclusion that the initiative banks in India is still a major issue while considering taken for create awareness about green banking to with the development of country .Banks and other financial customers is not effective. Banks should definitely take institution should play major role for maintaining and necessary steps to create awareness among the improving the sustainability. customers about green initiative strategies for its better We can conclude that banks should take new initiatives implementation. and promote different green banking products. Banks At the same time about 60 % of the respondents were also create awareness program about the Green banking known to many green banking initiatives such as , E- initiatives among its customers more effectively since statement facility ,Controlled use of energy ,Online Bill the customer’s plays major role in that. Many of the Payment , Electronic fund transfer system, Net Banking banks having environmental policies but it was not facility , Energy efficient air –conditioning system. properly reached to customers .They also adopt different While critically evaluate the data we can say that many strategies for the promotion of environment friendly of the respondent are enjoying the benefit of Green policies. Banks should also design Green banking Banking Technologies like ATM , online banking, mobile technologies which will ensure the efficient use of banking , e-statements but many are not aware of the resources of the country so as to ensure energy terminology green banking. This is the point where banks conscious world for better future. Employees of Financial lacking in promote the Green banking strategies to Industry must consider green banking as a necessity stakeholders. rather than desirability otherwise Green Banking policies will not reach to the customers. All the employees and Conclusion customers will put together their hands for the sustainable Green banking can be effectively implemented only with growth which will definitely result sustainability of the the involvement of al stake holders especially the environment. customers and employees. Many of the green banking

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References • K.Sudhalakshmi and Dr.K.M.Chinnadorai(2014), A • Bahl, S. (2012). The role of green banking in Study on Customer’s Awareness on Green Banking sustainable growth. International Journal of Initiatives in Selected Private Sector Banks with Marketing, Financial Service & Management Special Reference to Coimbatore City,The Research, 1(2) International Journal Of Business & Management ,2(4). • Jha,N.&Bhome,S.(2013).A study of green banking trends in India. Abhinav International Monthly Journal • Sharma, N., Sarika, K. & Gopal, R. (2014). A study of Research in Management & Technology. Vol (II). on customer’s awareness on Green Banking initiatives in selected public and private sector banks • Sharma, N., Sarika, K. & Gopal, R. (2014). A study with special reference to Mumbai. IOSR Journal of on customer’s awareness on Green Banking Economics and Finance,2(14). initiatives in selected public and private sector banks with special reference to Mumbai. IOSR Journal of • K.J Sathana and Sunmista (2014), Green Banking Economics and Finance,2(14). Initiatives of Commercial banks-Employees Perspectives, Global journal of research and • Sudesh Kumar and Bimal Anjum (2014), Electronic analysis,3(12). Banking: An Emerging Way of Customer Services, Research Journal of Management Sciences 3(4) • Yadav, R. & Pathak, G. (2013). Environmental Sustainability through Green Banking: A Study on • Naidu Kanchana and Paramasivan (2015), A study Private and Public Sector Bank in India. OIDA on green Banking trend in Indaia ,Research Explorer International Journal of Sustainable Development. Vol IV(10). 6(8).

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A STUDY ON WORK LIFE BALANCE OF WOMEN EMPLOYEES IN BPO SECTOR

DR. R. Devi1

Abstract Work – life Balance of women employees has become an important subject since the time has changed from men earning the family living in today’s world where both men and women equally share the responsibility of earning for the betterment of their family life. Hence it is for the betterment of their family life. Women have become equal participants in many respects at all levels of society. Work-life balance is about creating and maintaining supportive and healthy work environments, which will enable employees to have balance between work and personal responsibilities and thus strengthen employee loyalty and productivity. Key words: Words: Work life balance, Career growth.

Introduction Review of Literature The BPO sector in India has several distinguishing Cecilia (2013) revealed that the women’s jobs were features-its high degree of integration into the global grouped into four large categories at the bottom of the economy, relative freedom from state controls and ranking, assigned to the lowest wage ranges; the men’s dependence on a steady supply of highly educated jobs were in many more categories extending over a “knowledge workers”. Work in the BPO sector ranges much wider range of wage levels. The evaluation of the from relatively ‘low end’ to ‘high end’ solutions and clerical/secretarial categories showed that many different products. Apart from job mobility, there is also a high jobs with different tasks and responsibilities, some highly level of geographical mobility in this sector. Indian BPO skilled and responsible, had been lumped together services still have a fairly high proportion of such onsite Joanne and Meyer son (2012) studied that the work, in which employees are located at the client site managerial ranks now contained women in many for stints of a few months to more than a year. organizations, but secretaries, clerks, servers and care Work Life Balance of Women Employees providers were still primarily women. Women were Many women are unwilling or unable to put in as many beginning to be distributed in organizational class hours as their male counterparts, for several reasons. structures in ways that were similar to the distribution of men. Gender and class were no longer so perfectly Married women are less likely to be able to stay in the integrated, but gendered and sexualized assumptions office till late night, unless there is a pressing need, still shape the class situations of women and men in because they may face objections from their parents or different ways. in-laws or social disapproval. While young bachelors find a social life in the office that motivates them to stay Joanne and Meyer son (2011) in a study of high-level late, women rarely become part of this camaraderie and professional women in a computer development firm in fact the men might find women’s presence to be a found that the women saw the culture of their work group drag. Also, women need to reach home safely although as highly masculine, aggressive, competitive, and self- companies usually arrange for drops in the night. promoting. The women had invented ways to cope with this work culture, but they felt that they were partly Interruptions in women’s careers due to child bearing outsiders who did not belong. have particularly adverse effects on their growth, given the rapid changes in technology and the need to keep Wacjman (2010) found that in any organizations, women abreast of new developments. Most companies give three and men managed in the same ways. Women managers month’s maternity leave with option of an additional three and professionals often faced gendered contradictions months’ unpaid leave and some offer women the option when they attempted to use organizational power in of returning to work after maternity leave on a part-time actions similar to those of men. Women enacting power or consultancy basis or may allow them to work from violated conventions of relative subordination to men, home, for a year or more. Some companies even allow risking the label of “witches” or “bitches.” women to take leave without pay for a year.

1. Assistant Professor, Department of Corporate Secretary ship, K.C.S Kasi Nadar College of Arts & Science, Chennai

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Ely and Meyer Son (2009) found in some organizations, women managers worked quietly to do the organizational housekeeping, to keep things running, while men managers rose to heroic heights to solve spectacular problems. Need For the Study Given the nature of work culture in BPO sector, it is no wonder that most of male would not prefer to marry women in the same profession; they are well aware of the heavy commitment of time and energy involved and prefer wives who are willing to stay at home to look after the family or who have less stressful jobs. Most women BPO employees, on the other hand, they prefer husbands working in BPO sector, because they would be better able to understand the demands of job. This mismatch between BPO women’s and men’s expectations in terms of marriage is asymptomatic of the ways in which gender relations are being altered by the entry of women into this new kind of workforce. Objectives of the Study 1. To examine the effect of work life balance on women’s performance and work attitude. 2. To analyze the organizational factors affecting the work life balance in BPO sector. Scope of the Study The purpose of this study is to provide top management with information from which a sound HR policies especially women employees may be devised. The identification of unique characteristics and issues for women employees should assist the management with specialized work-life balance factors designed around very specific and unique tasks of their women employees. Research Methodology • Primary data was collected from the 50 respondents by questionnaire method. • Secondary data was collected from journals and Research articles to support the research. Limitations of the Study The present study is based on the primary data collected from the women employees of BPO companies. Hence, the drawbacks and limitations of the field level survey are very much applicable to the present research. The data and information collected from the respondents are subjected to recall bias. Analysis and Interpretation The weighted mean of factors affecting the work-life balance of women employees in BPO sector

Weighted Status S.No Work- life Balance Factors Mean 1 According to me women are able to strike a balance between success at 4.50 Agreed work and personal life 2 Late working hours have hampered my family life 3.77 Agreed

3 There have been instances where my family has not recognized that my 3.81 Agreed work pressures may require me to reprioritize my home commitments

4 Without flexi timings it will be difficult for me to work in the organization 3.84 Agreed

5 In my experience, flexi timings facilitate productivity in women 4.05 Agreed

6 Women find it difficult to maintain work life balance 4.53 Agreed

Results and Summary From the results, it is observed that all the work-life balance factors , according to women are able to strike a balance between success at work and in personal life, late working hours have hampered her family life, there have been instances where her family has not recognized that her work pressures may require her to reprioritize her home commitments, Without flexi timings it will be difficult for her to work in the organization, In her experience, flexi timings facilitate productivity in women, Support structure provided by her family helps in career advancement, Women find it difficult to maintain work life balance are agreed by women employees in BPO sector.

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Policy on Work-Life-Balance In Organizations Conclusion If an organization needs to be successful with committed The organization and management should become and productive women, it needs to not only lay down sympathetic to women employees’ commitments and schemes and strategies, but also needs to formulate excuse them from working late, contacting at unsociable policies and guide lines that can monitor these schemes. hours, scheduling meetings at odd hours, sending them The following steps are mandatory to formulate the policy for frequent tours unless very much required. This in turn, on WLB. will reduce their work pressures, offer them space to • Identification of the need for introducing WLB Policy. attain work-life balance and increase their productivity and commitment. • Creation of a Task-force that can lead this activity. • Formulate the policy on WLB based on the company’s References vision & mission’s statement. • Campbell DJ, Campbell KM, Kennard D. The effects • Form a committee that comprises of representatives of family responsibilities on the work commitment from management as well as workers category. and job performance of non professional women. J Occupant Organ Psych 1994; 67:283-96. • Conduct workshops to enhance knowledge and necessity of this policy. • White B. The career development of successful women. Women Manage Rev 1995; 10:4- 15. • Communicate the policy to all the employees. • Green haus JH, Beutell NJ. Sources conflict between • Implement the policy of maintain regular feedbacks work and family roles. & suggestions. • McCartney, C. (2003), “Work/ life Balance: The Role • Register and record each activity of the committees/ of the Manager” Training. Taskforce. • Update any changes that have been made to all employees. • Make the policy reachable and understandable by all.

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ASSOCIATION BETWEEN CRITICAL, CREATIVE THINKING AND PROBLEM SOLVING IN ACCOUNTING RESEARCHES : AN OVERVIEW

Dr.B. Nimalathasan1

Abstract The paper is attempted to focus on association between critical, creative thinking and problem solving in accounting researches. The professional accountant must possess thinking skills (i.e., inquisitiveness; open-mindedness; patience, thoroughness, and perseverance) to operate in an increasingly complex environment. These skills assist accountants in problem solving and decision making in general, and in professional research activities in particular. The present study is based on the secondary data. The collected data may be processed and analysed in order to make the present study useful to the readers, interested parties and policy makers of the concern area. Further, the present study also tries to contribute to this literature by doing the research. Key words: Critical; Creative Thinking; Problem Solving and Accounting Researches.

Introduction Methodology The professional accountant must possess thinking The present study is based on the secondary data. In skills (i.e., inquisitiveness; open-mindedness; patience, this regards, Neuman’s (1997) document analysis is very thoroughness, and perseverance) to operate in an useful for systematic analysis of a particular topic. increasingly complex environment. These skills assist Therefore, data were collected from published and accountants in problem solving and decision making in unpublished materials, books, newspapers and ongoing general, and in professional research activities in academic working papers. The collected data may be particular. Critical and creative thinking go beyond these processed and analysed in order to make the present attributes to include a number of other specialized skills. study useful to the readers, interested parties and policy For example, a critical thinker must have the skill of makers of the concern area. relating the known to the unknown for effective problem Analyses of findings solving and decision making. Critical thinking, and its closely related concept of It is important for accountants to possess critical and creative thinking, means different things to different creative thinking skills. Not surprisingly, surveys indicate people. The situation makes the specification of that over 95 percent of audit partners and corporate generally agreed upon definitions of critical and creative controllers view thinking skills to be important for the thinking difficult. Nevertheless, there are several common practicing accountant (Novin, Pearson & Senge, 1990). clues that can help define these concepts. In this The importance of critical thinking to accounting in the section, these concepts are defined and their differences professional literature is generally referred to as are identified. The analyses of findings have been professional scepticism. discussed under the following sub-heads. Objectives Critical The following objectives have been considered. Critical has its root in the Greek word Kriticos, or critic, 1. To understand the philosophy and concept of critical, that means to question, to make sense of, to analyze, creative thinking. and to form judgements of the merits, faults, value, or truth of a matter. It is by questioning and analysing that 2. To know the difference between critical and creative you can examines your thinking and the thinking of thinking; others. Because of this questioning and analysing, the 3. To identify the relationships between critical, creative word critical is sometimes confused with the word thinking and problem solving in complex environments criticize, which is to find fault with. This confusion results 4. To suggest the some measures to solve the problems in a negative connotation for the word critical, but this is through critical and creative thinking techniques. not the purpose of critical thinking. The word critical in critical thinking is used in a more constructive manner.

1. Department of Accounting, Faculty of Management Studies & Commerce, University of Jaffna, Sri Lanka.

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It is used for making sense of and for analysing for the It follows that critical thinking is an active, purposeful, purpose of developing a better understanding. and organized process of thinking about one’s own thinking (Chaffee, 1990). An implication of this definition Thinking is that one critically evaluates the logic and validity of Thinking is a natural process, but left to itself, it is often information, develops evidence to support or refute his biased, distorted, partial, uninformed, and potentially or her views, carefully analyzes situations, and discusses prejudiced; excellence in thought must be cultivated subjects in an organized way. Thus, critical thinkers do (Scriven and Paul, 2004). not only seek evidence to support their own views, but Thinking is a mental activity that helps formulate or solve also other alternative perspectives. Upon an active, a problem, make a decision, or fulfil a desire to purposeful, and organized examination of our current understand. It is a searching for answers, a reach for thinking, we realize that a modified, or a qualified, or meaning (Ruggerio, 1988). Thus, thinking is an active, even an adverse opinion could be issued due to some purposeful, and organized process (Chaffee, 1990). It material misstatements that were discovered. (Mead refers to a variety of complex cognitive activities (e.g., Data Central Inc, 1995). This is where our critical generating and organizing ideas, forming and applying examination of our own thinking and the process of concepts, designing systematic plans of action, collecting additional evidence will help you make your constructing and evaluating arguments, exploring issues final decision. from multiple perspectives, and applying knowledge to Creative Thinking new situations ( Chaffee,1992). All of these cognitive Creative thinking refers to original or imaginative thinking activities are useful in the practice of accounting. to produce innovative solutions or alternative courses of Critical Thinking action that are useful for problem solving and decision Critical thinking is, very simply stated, the ability to making. For example, a company might only be willing analyze and evaluate information. Critical thinkers raise to acquire another entity if it can account for the vital questions and problems, formulate them clearly, acquisition by the pooling of interest method rather than gather and assess relevant information, use abstract the purchase method. In the pooling of interest method, ideas, think open-mindedly, and communicate effectively the acquire simply combines the financial statements with others. Passive thinkers suffer a limited and ego- of the acquired company with its own, thereby avoiding centric view of the world; they answer questions with recognition of goodwill. In the purchase method, the yes or no and view their perspective as the only sensible excess amount paid over and above the acquired one and their facts as the only ones relevant. Critical company’s tangible net worth is recorded as goodwill. thinking is an important and necessary skill because it Creative thinking is different from “creative accounting”, is required in the workplace, it can help you deal with in which an accountant might try to intentionally mental and spiritual questions, and it can be used to manipulate accounting numbers to achieve a desired evaluate people, policies, and institutions, thereby outcome such as income smoothing. avoiding social problems (Hatcher and Spencer, 2005). Differences between Critical and Creative Thinking There have been many definitions of critical thinking over To differentiate critical thinking and creative thinking the years. Norris (1985) posited that critical thinking is consider how the mind works (Ruggero, 1988). The deciding rationally what to or what not to believe. Elder human mind has two phases: (1) production and; (2) and Paul (1994) suggested that critical thinking is best judgement. In the production phase, a person understood as the ability of thinkers to take charge of conceptualizes a problem and thinks of various ways to their own thinking. Harris and Hodges (1995) declared solve it. This phase is creative thinking because it involves critical evaluation as the process of arriving at a judgment the mind in an imaginative and innovative solution- about the value or impact of a text by examining its producing mode. In the judgement phase, the person quality. examines and evaluates alternative courses of action, Halpern (1996) defines critical thinking as "…the use of thus making a critical judgement about the merits of cognitive skills or strategies that increase the probability various courses of action. of a desirable outcome." Other definitions include: the Critical thinking and creative thinking take a highly formation of Logical inferences (Simon & Kaplan, 1989), complex role in problem solving and decision making. developing careful and logical reasoning (Stahl & Stahl, High levels of critical and creative thinking are needed 1991), deciding what action to take or what to believe for more complex problems and decision-making through reasonable reflective thinking (Ennis, 1991), and situations. These situations require much judgement and purposeful determination of whether to accept, reject, decision making that go beyond simple solutions. As or suspend judgment (Moore & Parker, 1994).

Special issue November 2015 Page 141 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 stated by National Council of Teachers of English, critical also as a primarily creative way to generate possible thinking is a process that stresses an attitude of solutions. suspended judgement, incorporates logical inquiry and Force-Field Analysis problem solving and leads to an evaluative decision or action (French, 1992). Developed by social psychologist Kurt Lewin as a visualization technique, Force-Field Analysis describes The Association between Critical, Creative thinking a problem as a balance of oppositions: driving forces, and Problem Solving which push to improve the current situation, and restraining Critical thinking may be required to identify an appropriate forces, which push to worsen it. explanatory. This is because the task requires the Delphi understanding of a particular meaning and generation of new knowledge based on established accounting or audit The Delphi technique applies to a wide variety of standards. The critical thinker uses basic skills of situations, especially when group problem-solving has relationship, transformation, and causation to generate been weakened because not all members are new reasons, proof, or theory. contributing ideas. On the other hand, in a creative thinking context, the Collages thinker is creating a novel idea, say a new method of If our group is working on a problem that is abstract and revenue recognition for a unique exchange transaction intangible, you may find it very difficult to describe and or an estimation method to value stock option plans. discuss it among ourselves as well as with colleagues Basic skills of qualification, relationship, and transformation and management. This situation is almost impossible may be used to generate the new meanings, ideas, or to resolve without using collages to create a visual methods. message that will help us put our ideas into words. A In a problem-solving context, the standard-thinking skills powerful technique, collages can prove useful in a needed are caution and transformation. Causation surprising variety of situations. Because this exercise establishes the link between the cause and effect and is likely to be new and unusual for most members, the transformation processes the information from input to use of collages resembles swapping in calling upon the output. For example, in a depreciation calculation skill and sensitivity of the facilitator. problem, causation is used to establish the usage (cause) Swapping depreciates an asset (effect). The depreciation method Designed specifically for groups in which opposing used transforms the problem through the depreciation camps have deadlocked, swapping encourages the two formula to a depreciation expenses. sides to listen to each other by having each present the In decision making context, the decision maker selects opposition’s case. the best course of action from among several alternative Cost-Benefit Analysis course of action. The standard thinking skills used is classification and relationship. The outcome from this Cost-benefit analysis is an examination and comparison process is the decision. of the costs incurred in pursuing a course of action and the benefits that will be derived from doing so. Policy Implications Brainstorming Although the present study was confined to critical, creative thinking and problem solving in accounting It is a group creativity technique designed to generate a researches, it may be appropriate to state briefly the large number of ideas for the solution of a problem. policy implications for the study. In this context, the Although brainstorming has become a popular group following policy actions may be considered worthwhile technique, researchers have not found evidence of its effectiveness for enhancing either quantity or quality of Check sheet ideas generated. Because of such problems as An important tool that problem-solving groups use to distraction, social loafing, evaluation apprehension, and record data is a check sheet. The type of check sheet production blocking, brainstorming groups are little more used depends on whether you need to record the number effective than other types of groups, and they are actually of events by type within a specific time period; the work less effective than individuals working independently. flow through a department; or the type, duration, and Presentation cause of each of several events. General principles of presentation are covered in detail Fishbone Diagram in the Communication module in this Continuing Applicable to a wide range of situations, the Fishbone Education series. Diagram may be used not just to analyze causes but

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Concluding Remarks • Norris, Stephen P. (1985).Synthesis of Research on Critical thinking is an active and purposeful thinking process Critical Thinking. Educational Leadership, 42(8), 40- that is required to perform contemporary accounting and 45. auditing tasks. Several task characteristics (e.g., task • Neuman, W.L. (1997). Social Research Methods: novelty) were identified as those that require critical Qualitative and Quantitative approaches Boston: Allyn thinking. It was also noted that several action- oriented and Bacon. attributes such as meaning imposition are necessary to • Novin, A.M., Pearson, M.A., & Senge, S.V. (1990). understand the tasks and to perform them effectively. Improving the Curriculum for Aspiring Management References Accountants: The Practitioner’s Point of View, Journal of Accounting Education, 8,207-224. • Chaffee, J.(1990). Thinking Critically, 3rd ed, Boston, • Ruggerio, V.R.(1988). The Art of Thinking: A Guide to MA: Houghton Mifflin,34. Critical and Creative Thought,2nd ed, New York: • Chaffee, J.(1992). Teaching Critical Thinking across Jarper & Row, Curriculum in New Directions for Community • Simon, H.A., & Kaplan, C.A. (1989). In M.I. Posner Colleges, 77, 25. (Eds.), Foundations of Cognitive • Elder, L., & Paul, R. (1997). Critical thinking: Crucial • Sciences Cambridge, MA: MIT Press, 1-47. Distinctions for Questioning. Journal of Developmental Education 21(2), 34. • Stall, N.N., & Stahl, R.J. (1991). We Can Agree after All: Achieving a Consensus for a • Ennis, R. H. (1991). Critical Thinking: A Streamlined Conception. Teaching Philosophy, 14 (1), 5-24. • Critical Thinking Component of a Gifted Program using the Delphi Technique. Roeper Review, 14(2), • Halpern, D.F. (1996). Thought and Knowledge: An 79-88. Introduction to Critical Thinking. • Scriven, M., & Paul, R. (2004). The Critical Thinking • Mahwah, NJ: Lawrence Erlbaum Associates, Community. Retrieved November 28, 2005, from http:/ Publishers. /www.criticalthinking.org/aboutCT/definingCT.shtml. • Harris, T., & Hodges, R. (Eds.). (1995). The Literacy • The exact proportion of standard unqualified reports Dictionary, Newark, DE: International Reading to all audits performed is difficult to quantify. However, Association, 48. in a search of annual reports between 1984 and 1994 • Hatcher, D. L., & Spencer, L. A. (2005). Reasoning in the Lexis/ Nexis Research Software (Mead Data and Writing: From Critical Thinking to Composition. Central Inc., 1955) NAARS database. 3rd. ed. Boston: American Press. • Moore, B.N., & Parker, R. (1994). Critical Thinking. Mountain View. CA: Mayfield.

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EMANATION OF WOMEN-INHERITED BUSINESS IN INDIA – AN INSIGHT

Dr.R. Vimal Nishant 1

Abstract In the era of Liberalization, Privatization and Globalization along with ongoing Information Technology revolution, today’s world is changing at a surprising pace. Political and Economic transformations appear to be taking place everywhere as countries convert from command to demand economies, dictatorships move toward democratic system, and monarchies build new civil institutions. These changes have created economic opportunities for women who want to own and operate businesses.Today, women entrepreneurs represent a group of women who have broken away from the beaten track and are exploring new avenues of economic participation. Among the reasons for women to run organized enterprises are their skill and knowledge, their talents, abilities and creativity in business and a compelling desire of wanting to do something positive. It is high time that countries should rise to the challenge and create more support systems for encouraging more entrepreneurship amongst women. At the same time, it is up to women to break away from stereotyped mindsets. This paper focuses on the concept of woman entrepreneurs in India; their traits in business, the problems faced by them when they set up and make some suggestions for future prospects for development of Women Entrepreneurs. Key words : Entrepreneurship development, Women entrepreneurs, problems, future prospects, India.

Introduction of business and have proved their footage in the male In this dynamic world, women entrepreneurs are a dominated business arena. significant part of the global expedition for sustained Concept of “Women” as an entrepreneur in India: economic development and social progress. Due to the Entrepreneurship has gained currency across the sphere growing industrialization, urbanization, social legislation and female- entrepreneurship has become an important and along with the spread of higher education and module. India is one of the fastest emerging economies awareness, the emergence of Women owned businesses and the importance of entrepreneurship is realized across are highly increasing in the economies of almost all the gamut. countries. Women entrepreneurs are fast becoming a force to “Women Entrepreneurship” means an act of business reckon with in the business world and are not only ownership and business creation that empowers women involved in business for survival but to satisfy their inner economically increases their economic strength as well urge of creativity and to prove their capabilities. Educated as position in society. Women-entrepreneurs have been Women is contributing to a great extent to the social making a considerable impact in all most all the transformation and in the future, will be seen that more segments of the economy. women venturing into areas traditionally dominated by Pandit Jawaharlal Lal Nehru has remarked “When men. women move forward, the family moves, the village Today’s women are taking more and more professional moves and the Nation moves.” Women Entrepreneurs and technical degrees to cope up with market need and have been making a significant impact in all segments are flourishing as de signers, interior decorators, of economy of the world. Their willingness for the future exporters, publishers, garment manufacturers and still is apparent in their growing confidence, in their strengths exploring new avenues of economic participation. It is and in their desire to seek different forms of work in order perhaps for these reasons that Government Bodies, to achieve a new balance between work and home. NGO’s, Social Scientists, Researchers ‘and International In the words of Former President APJ Abdul Kalam Agencies have started showing interest in the issues "empowering women is a prerequisite for creating a related to entrepreneurship among women in India. good nation, when women are empowered, society Women entrepreneur’s explore the prospects of starting with stability is assured. Empowerment of women is a new enterprise; undertake risks, introduction of new essential as their thoughts and their value systems innovations, coordinate administration & control of lead to the development of a good family, good society business & providing effective leadership in all aspects and ultimately a good nation."

1. Associate Professor and Head, Department of MBA, Excel Business School, Namakkal District, TN, India

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Thus a women entrepreneur is one who starts business she is able to force her team to capitalize on profits and and manages it independently and tactfully takes all the gather its benefits. risks, accepts challenging role to meet her personal Women values cooperation and allegiance needs and become economically independent. A strong desire to do something positive is an inbuilt quality of A woman has the ability to work with all levels of entrepreneurial women, who is capable contributing populace. She is keen on maintaining associations and values in both family and social life and is one who faces communicates evidently and efficiently. This helps her the challenges boldly with an iron, will to succeed. to negotiate even responsive issues without difficulty. She is sympathetic to people around her and have good Traits of Women Entrepreneurs in India networking skills that help her to get better contacts Women are ambitious and utilize opportunities. A successful woman entrepreneur is dreadfully strong- Women can balance home and work minded one, has an inner urge or drives to change contemplation into realism. Knowledge from her previous A successful woman entrepreneur is good at balancing occupancy as an employee, relying on educational varied aspects of life. Her multi- tasking aptitude qualifications or lessons learnt from inborn business, combined with support from spouse and relatives enables she is ready to grab opportunities, sets goal, possess her to bring together business priorities with domestic clear vision, steps confidently forward and is ambitious responsibilities competently and efficiently. to be successful. Every successful woman entrepreneur Women are aware of her legal responsibility to the is truly determined to achieve goals and make her social order business prosper. Thorough knowledge of the field is A successful woman entrepreneur is eager to share her indispensable to success. She comes with new innovative achievement with the society. She is dedicated to assist solutions to old problems to tide over issues. others and enjoys her liability. Women are confident Women focus on their Plans A successful woman entrepreneur is confident in her Women Entrepreneur’s plan their work and work with ability. She is ready to learn from others, search for help plan. Set long-term and short-term goals and take from experts if it means adding value to her goals. She consistent action in moving toward them. is positive in nature and is keener to take risks. A winning woman entrepreneur uses common intelligence to make Women are Resourceful sound judgments when encountering everyday situations. Women entrepreneurs take advantage effectively This is gleaned from past experience and information coordinating the available factors and resources such acquired over the years. It is essential not to get as mentoring, training and coaching and build a strong aggravated and give up when you face obstacles and base of education, training and experience which can trials. The aptitude to explore uncharted territories and help lead to success. take bold decisions is the hallmark of a successful woman entrepreneur. A successful woman usually loves Key Changes In Women Entrepreneurs In Last what she does. She is extremely fervent about her tasks Five Decades and activities. Her high energy levels motivate her to Women Entrepreneurs of the Fifties : Compulsive contribute immensely towards building, establishing and factors led to the creation of women entrepreneurs maintaining a prosperous business. Women Entrepreneurs of the Sixties : Women began Women is open and willing to learn to aspire but also accepted the social cultural traditions A successful woman entrepreneur keeps side by side of Women Entrepreneurs of the Seventies : The women changes, as she is fully conscious of the importance of in this decade opened up new frontier. They had not only evolving changes. She is ahead of her competitors and aspiration but ambition thrives on changes. She adapts her business to changes in technology or service prospect of her patrons. She is Women Entrepreneurs of the Eighties : Women were inquisitive, concerned to learn and accommodative to educated in highly sophisticated, technological and innovations. professional education. They became equally contributing partners Women are cost conscious Women Entrepreneurs of the Nineties : This was the A successful woman entrepreneur prepares pragmatic first time when the concept of best rather than male heir budget estimates. She provides cost- effective quality was talked about services to her clients. With minimized cost of operations,

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Women Entrepreneurs of the 21st Century : The status • Undertaking a risk and handling of economic of women in India has been changing as a result to uncertainties involved in business. mounting industrialization and urbanization and social • project preparation legislation. Over the years, more and more women are • Product analysis going in for higher education, technical and professional • Introduction of innovations, imitations of innovations. education and their proportion in the workforce has also been increased. • Form of business • Co ordination, administration and control. Role of women as an Entrepreneur : • Raising funds Considering the flow of women entrepreneurs in the • Supervision and leadership. traditional industries, it is often criticized that the women • Procuring men, machine and materials and operations entrepreneurship is engaged only in handloom and of business handicraft and in the non-traditional term, now their In nutshell, women entrepreneur are those women who aspect have broaden into new line like hotel line, Xeroxing, think of a business enterprise, initiate it, organize and Beauty Parlor business, incense stick making, candle combine the factors of production, operate the enterprise, making etc. undertake risk and handle economic uncertainties In the last decade, there has been a remarkable shift it involved in running a business enterprise. emphasizes from the traditional industry to non-traditional Credit facilities available for Women Entrepreneurs: industry and services. Based on this concept, some Small Business : For women entrepreneurs who intend important opportunities are being identified, considering to provide service (not a professional service) such as the socio-economic, cultural and educational status and setting up a small lunch/canteen, mobile restaurant, motivational level of women entrepreneurs, particularly circulating library etc. projects with low investment, low technical know-how • Professional and Self Employed : Women and assured market are suggested for them such as Entrepreneurs who are specially qualified/skilled and production of soaps, detergents, ready- made instant experienced like Doctors, Chartered Accountants, food products including pickles, spices, papad, and Engineers or trained in Art or Craft etc. manufacturing of woolen goods, beauty parlor business, typing centre, job contracts for packaging of goods • Retail Trade : For women entrepreneurs who intend and distribution and household provision etc. At present to engage in retail trading of various commodities. they are: • Village and Cottage/Tiny Industries : For women entrepreneurs who are engaged in manufacturing, Creative: It refers to the creative approach or innovative processing, preservation and services such as ideas with competitive market. Well- planned approach Handloom, Weaving Handicraft, Food-Processing, is needed to examine the existing situation and to Garment making etc. in village and small towns with identify the entrepreneurial opportunities. It further implies a population not exceeding 50,000 utilizing locally that women entrepreneur's have alliance with clued-up available resources/skills. people and constricting the right organization offering support and service. • Small Scale Industries : To start a unit engaged in manufacture, processing or preservation of goods. Quality to working hard : Innovative women have further • Agriculture & Allied Activities : For women ability to work hard. The creative ideas have to come to entrepreneurs who are engaged/intend to engage in a fair play. Hard work is required to build up an enterprise. agricultural and allied activities, such as raising of Determination : Women entrepreneurs must have an crops, floriculture, fisheries, bee- keeping, nursery, intention to fulfill their dreams. They have to make a sericulture etc. and also trading in agricultural inputs. dream transferred into an idea enterprise. • Government Sponsored Programs : Apart from Profit earning capacity : She has a capability to get the above schemes, women entrepreneurs are also maximum return out of invested capital. financed under the various Government Sponsored Programs where Capital subsidies are available. Functions of Women Entrepreneurs : A Woman entrepreneur has also to perform all the Women Entrepreneurs and Their Problems functions involved in establishing an enterprise Women entrepreneurs face many hurdles. Societal • Functions for establishment of an enterprise support is a key determinant in entrepreneurial establishment. The most common problem, which a • Idea generation and screening woman faces, is the non-cooperation from her husband • Determination of objectives

Special issue November 2015 Page 146 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 or close family members. Majority of the time the family hurdles. Due to lack of Knowledge of latest technological members do not motivate them. Besides they face other change, know-how and education creates problems problems like mobility constraints, dual responsibility, before women to set up competitive enterprises. low managing ability, risk-bearing ability etc. They don’t Family Conflicts lack managerial skills but they have less promotional ability, which they need to improve upon. Women also countenance the conflict of performing of home role as they are not available to spend enough Scarcity of raw material and finance are another problem time with their families. Because in India, mainly a faced by the women entrepreneurs. The standard of woman’s duty is to look after her children and manage technology used by the women entrepreneurs is the other members of the family. In business they have qualitatively low; they are poor in technical know-how. to spend long hours and as a result, they find it difficult Transportation difficulties, improper power supply and to meet the demands of their family members and telecommunication are some of the other problem faced society as well. Their incapability to attend to domestic by them. Marketing problem is the biggest problem faced work, time for education of children, personal hobbies, by women entrepreneurs. and entertainment adds to their conflicts. There are some umpteen problems faced by women at Marketing Problems various stages beginning from their initial commencement Women entrepreneurs incessantly face the problems in of enterprise, in running their enterprise. Their various marketing their products. It is one of the core problems problems are as follows: as this area is mainly dominated by males and even Arrangement of Finance women with adequate experience fail to make a dent. For every business undertaking Finance is said to be For marketing the products women entrepreneurs have the “life blood”, whether it is large, medium or small to be at the mercy of middlemen who pocket the hunk of enterprise. Women entrepreneurs face the problems of profit. Although the middlemen exploit the women shortage of finance on two important bases. Firstly, entrepreneurs, the purging of middlemen is tricky, women do not in general have property on their own because it involves a lot of running about. Women names to use that as collateral securities for obtaining entrepreneurs also find it difficult to capture the market loans/funds from banks and other financial institutions. and make their products popular. Thus their access to external sources is very limited Lack of self-confidence and optimistic attitude .Secondly, obtaining the support of bankers, managing amongst women :- the working capital, lack of credit resources are the Nowadays most of the women are suffering from problems which still remain in the male’s domain. one major problem of lack of self-confidence, determin- Shortage of raw-materials ation, physically powerful outlook, hopefulness etc. They Women entrepreneurs encounter the problems of are always panic from committing mistakes while doing shortage of raw-materials and necessary inputs. On the their piece of work, more over there is limited initiative of pinnacle of this, is the high prices of raw materials, on taking risk and bearing uncertainty in them. Thus all one hand and getting raw materials at minimum discount these psychological factors often obstruct their path of rates are the other. achieving success in the area of enterprise. Cut-throat Competition High cost of production : Lot of the women entrepreneurs have imperfect High cost of production undermines the efficiency and organizational set up to drive in a lot of money for adversely affects the development of women canvassing and advertisements. They have to face severe entrepreneurs. The installation of new machinery during competition from organized industries. They have also expansion of the productive capacity and like similar to face a stiff competition with the men entrepreneurs factor dissuades the women entrepreneur from venturing who easily involve in the promotion and development area in to new area. Government assistance in the form of and carry out easy marketing of their products with both grant and subsidies to some extent enables them to the organized sector and their male counterparts. Such tide over the difficult situations. However, in the long run, a competition ultimately results in the insolvency of it would be necessary to increase efficiency and expand women entrepreneurs. productive capacity and thereby reduce cost to make their ultimate survival possible, other than these, women Lack of education and prevalent levels of illiteracy entrepreneurs also face the problems of labour, human amongst women resources, infrastructure, legal formalities, overload of In India, around (40%) of women are still illiterate. work, lack of family support, mistrust etc. Illiteracy is the root cause of socio-economic barriers or

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Future Prospects for Development of Women The formal education not only helps in acquisition of Entrepreneurs requires knowledge for a job, which demands non- Education is a boon to mankind, while lack of education traditional skills but also imparts knowledge about to a person is a bane now-a-days. Throughout the world, the different occupational opportunities. we can observe that the ratio of women entrepreneurs • There should be an incessant attempt to motivate, is growing tremendously. The emergence as well as give confidence, inspire and assist women development of women entrepreneurs is quite visible in entrepreneurs. India and their over-all contribution to Indian economy is • Government should provide better educational also very significant. Today the role of Women facilities and schemes to women folk. entrepreneur in economic development is inevitable • There should be continuous monitoring, improvement because women are entering not only in selected of training programmers, practical experience and professions but also in professions like trade, industry personality development programs to improvise their and engineering. over-all personality standards. The industrial structure and the enterprises are • Establishment of proper training institutes for undergoing a radical change. Information Technology has enhancing their level of work-knowledge, skills, risk- transformed the very technique of doing business. taking abilities, enhancing their capabilities. Training Individually, business ownership provides women with Centers should provide training to prospective women the independence they crave and with economic and entrepreneurs free of cost and Entrepreneurship social success they need. Nationally, business ownership Development Program should be much more practical has great importance for future economic prosperity. oriented. Globally, women are enhancing, directing, and changing • A women entrepreneur should herself set up an the face of how business is done today. Ultimately, example by being successful and should act as a female business owners must be recognized for who role model. Since children have a tendency to emulate they are, what they do, and how significantly they impact their parents, the resultant effect would be automatic. the world’s global economy. • Establishment of proper training institutes for Women should be considered as specific target group enhancing their level of work-knowledge, skills, risk- for all development programs. Govt. should extend better taking abilities, enhancing their capabilities. educational facilities and schemes to women folk. • Finance is sine-qua-non for any enterprise. The Adequate training programs on management skills banking system is not sufficiently responsive to social should be provided to women community. Encourage banking needs and has not been able to deal with women’s participation in decision making. Vocational barriers that hinder women from using or gaining training should be extended to women community to access to credit. enable them to understand the production process and management. • Creating provision of micro credit system and enterprise credit system to the women entrepreneurs Training on professional competence and leadership at local level. skills should be extended to women entrepreneurs. • Provision should be made to provide land / sheds to Activities in which women are trained should focus on deserving women entrepreneurs on priority basis. their marketability and profitability. State Finance Group Women Entrepreneurship (GWE) may be Corporations and financing institutions should permit by promoted in rural sector by reinvigorating activities / statute to extend purely trade related finance to women skills on traditional crafts or practices with which they entrepreneurs. And lastly women’s development are acquainted. corporation has to gain access to open-ended financing. • A Women Entrepreneur's Guidance Cell should be On the basis of the aforesaid problems faced by women set up to handle the various problems of women entrepreneurs and various other problems too, there is entrepreneurs all over the state. a provision of a number of Strategies for promoting women • Positive attitudinal change in the society recognizing entrepreneurship to overcome these problems. Such the role of women as entrepreneur may lead to the solutions or remedies can be well understood as under:- development of appropriate environment in which • Promoting entrepreneurship among women is women will be able to exploit their entrepreneurial especially important to tackle the problems of under talents employment and unemployment in the society. • Offering seed capital, up-liftmen schemes, women • Education has been instrumental in increasing the entrepreneurs fund etc. to encourage them participation of women in entrepreneurial activities. economically.

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• To extend confessional rates facilities and schemes References for women entrepreneurs to prosper in the field of • Dhameja. S. K (2002), Women Entrepreneurs: enterprise. Opportunities, performance, problems, Deep Thus by adopting the following aforesaid measures in publications (p) Ltd, New Delhi, p 11. letter and spirit the problems associated with women • Dynamics of entrepreneurial development and can be solved. management – By Vasant Desai. Himalaya Publishing House. Conclusion • Entrepreneurship Development –By S.S Khanka. S. India is a male dominated society and women are Chand & Company Limited. (Ram Nagar, New Delhi- assumed to be economically as well as socially 110055). dependent on male members. The absolute dependence seems to be diluted among the high and middle class • Rajendran N (2003), "Problems and prospects of women as they are becoming more aware of personal women Entrepreneurs" SEDME, Vol. 30 no.4 Dec. needs and demanding greater equality. • Rao Padala Shanmukha (2007) "Entrepreneurship Development among Women: A case study of self Women entrepreneurs faced lots of problems at start- help Groups in Srikakulam District, Andhra up as well as operating stage like, non availability of Pradesh" The Icfai Journal of Entrepreneurship finance, restricted mobility freedom and having to perform Development Vol.1V No. 1 dual role one at home and other at work. Technological advancement and information technology explosion have • Sharma Sheetal (2006) “Educated Women, powered, reduced the problem of women entrepreneurs. Along with women" Yojana Vol.50, No.12 technological revolution, mental revolution of society is • Shiralashetti A S and Hugar S S " Problem and needed to change the attitude of the society and Prospects of Women Entrepreneurs In North provide women with democratic and entrepreneurial • Karnataka District: A case study" The Icfai Journal of platform More-over with increasing Government and Non- Entrepreneurship Development Vol.1v No. 2 Government and other financial institutions assistance • Shodh, Samiksha and Mulyankan (International for various women entrepreneurs within the economy Research Journal—ISSN-0974-2832 Vol. II, Issue-9- there can be significant increase brought about in the growth of women entrepreneurship process. Still efforts • 10 (Oct.-Nov.-2009) Women Entrepreneurship in India are being made to coordinate with the enterprise activities (Problems, Solutions & Future Prospects of of women and providing them utmost financial, morale, • Development) * Dr. Sunil Deshpande **Ms. Sunita psychological support by various institutions working Sethi. within the economy and world-wide. • Theory and Practice- By Dr. D.D. Sharma & Dr. S.K. Thus, Women have the potential and the determination Dhameja Abhishek Publications Chandigarh-17 (India) to set up, uphold and supervise their own enterprises in • Women Entrepreneurship and Economic a very systematic manner. Appropriate support and Development – By Sanjay Tiwari, Anshuja Tiwari. encouragement from the Society in general and family Publisher: Sarup and Sons members in particular is required to help these women • http://www.nytimes.com/2009/09/16/world/asia/ scale new heights in their business ventures. The right 16ladies.html http://www.articlesbase.com/ kind of assistance from family, society and Government entrepreneurship-articles/is-the-women-entrepreneur- can make these Women Entrepreneurs a part of the empowered-in- india-3147613. mainstream of national economy and they can contribute to the economic progress of India.

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PROSPECTS OF GREEN MARKETING AND ITS STRATEGIES

Hena. M1

Abstract In today's business world environmental and social issues plays an important role in marketing. There is a growing interest among consumers all over the world regarding protection of environment, which led to the emergence of Green Marketing as a market for sustainable and socially responsible goods and services. As society becomes more concerned with the natural environment, businesses have begun to modify their behavior in an attempt to address society's concerns. Many governments around the world have also become so concerned about green marketing activities that they have attempted to regulate them. Green Marketing practices is been adapted by various companies in various industries, thereby minimizing wastage and integrating their activities in the environment. Indian companies are also become serious about building sustainability in the environment. The present paper explores the necessity, opportunities and challenges of Green marketing. It also focuses on the strategies that makes eco-friendly environment through Green Marketing. Key words: Green Marketing, Opportunities, Challenges, Marketing Strategies

Introduction Managerial Implications According to the American Marketing Association, This paper provides insights to marketers about various “Green Marketing is the marketing of products that are challenges and opportunities in the Indian market while presumed to be environmentally safe. Green marketing going green and also consider the factors such as price is also be defined as "comprehensive management and awareness about green products among the process of recognizing, forecasting and fulfilling the consumers while devising marketing strategies. needs of customers and society in a profitable and Evolution of Green Marketing sustainable manner" (McDonough, P., Prothero, A, 1997). Green marketing term was first discussed in a seminar In the words of Polonsky (1994) all activities designed on Ecological Marketing? organized by American to generate and facilitate any exchanges intended to Marketing Association (AMA) in 1975 and took its place satisfy human needs or wants, such that the satisfaction in the literature. The term green marketing came into of these needs and wants occurs, with minimal prominence in the late 1980s and early 1990s. The first detrimental impact on the natural environment?. Green wave of green marketing occurred in the 1980s. The marketing refers to the process of selling products and/ tangible milestone for the first wave of green marketing or services based on their environmental benefits. came in the form of published books, both of which were Such a product or service may be environmentally called Green Marketing. They were by Ken Pattie (1992) friendly in itself or produced and/or packaged in an in the United Kingdom and by Jacquelyn Ottman (1993) environmentally friendly way. Thus, it incorporates a broad in the United States of America. According to Peattie range of activities including product modification, (2001), the evolution of green marketing has three changes to the production process, packaging changes, phases. as well as modifying advertising. First phase was termed as "Ecological" green marketing, Research Methodology and during this period all marketing activities were The research is exploratory in nature; it focuses on concerned to help environmental problems and provide Literature review, News Papers, Journals, websites and remedies for environmental problems. Second phase was the other reliable sources. "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative Objectives of the study new products, which take care of pollution and waste 1. To examine the opportunities and challenges of green issues. Third phase was "Sustainable" green marketing. marketing. It came into prominence in the late 1990s and early 2. To bring out the green marketing strategies 2000concerned with developing good quality products which can meet consumers need by focusing on the

1. Faculty Member Department of Rural Marketing Management College of Cooperation, Banking and Management, Kerala Agricultural University, Thrissur

Special issue November 2015 Page 150 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 quality, performance, pricing and convenience in an responsible products, however, are often less expensive environment friendly way. when product life cycle costs are taken into consideration, for example fuel-efficient vehicles, water- Characteristics of Green Products efficient printing and non-hazardous products. We can define green products by following measures: Place: The choice of where and when to make a product 1. Products those are originally grown. available has a significant impact on the customers being 2. Products those are recyclable, reusable and attracted. Very few customers go out of their way to buy biodegradable. green products merely for the sake of it. Marketers 3. Products with natural ingredients. looking to successfully introduce new green products 4. Products containing recycled contents and non toxic should, in most cases, position them broadly in the chemical. market place so they are not just appealing to a small green niche market. The location must also be 5. Products contents under approved chemicals. consistent with the image which a company wants to 6. Products that do not harm or pollute the environment. project. The location must differentiate a company from 7. Products that will not be tested on animals. its competitors. This can be achieved by in-store 8. Products that have eco-friendly packaging i.e. promotions and visually appealing displays or using reusable, refillable containers etc. recycled materials to emphasize the environmental and other benefits. The Four Ps of Green Marketing Product : Entrepreneurs wanting to exploit emerging Promotion Promoting products and services to target green market either by identifying customer‘s markets includes paid advertising, public relations, sales environmental needs or by developing environmentally promotions, direct marketing and on-site promotions. responsible products to have less impact than Smart green marketers will be able to reinforce competitors. The increasingly development of : environmental credibility by using sustainable marketing and communications tools and practices. For example, • Products that can be recycled or reused. Efficient many companies in the financial industry are providing products, which save water, energy or gasoline, save electronic statements by email, e-marketing is rapidly money and reduce environmental impact. replacing more traditional marketing methods, and • Products with environmentally responsible packaging. printed materials can be produced using recycled McDonalds, for example, changed their packaging materials and efficient processes, such as waterless from polystyrene clamshells to paper. printing. Retailers, for example, are recognizing the value • Products with green labels, as long as they offer of alliances with other companies, environmental groups substantiation. and research organizations when promoting their • Organic products — many consumers are prepared environmental commitment. To reduce the use of plastic to pay a premium for organic products, which offer bags and promote their green commitment, some promise of quality. Organic butchers, for example, retailers sell shopping bags, under the banner of the Go promote the added qualities such as taste and Green Environment Fund. tenderness. (Table -1) • A service that rents or loans products –such as toy libraries. The key to successful green marketing is credibility. Never overstate environmental claims or establish • Certified products, which meet or exceed unrealistic expectations, and communicate simply and environmentally responsible criteria. through sources that people trust. Promote your green Whatever the product or service, it is vital to ensure that credentials and achievements. Publicize stories of the products meet or exceed the quality expectations of company environmental awards programs to profile customers and is thoroughly tested. environmental credentials to customers and Price: Pricing is a critical element of the marketing mix. stakeholders. Most customers are prepared to pay a premium if there Opportunities in Green Marketing is a perception of additional product value. This value 1. Competitive Advantage: Adopting green practices by may be improved performance, function, design, visual organizations will help an organization to take appeal or taste. Environmental benefits are usually an strategic advantage over its competitors in the added bonus but will often be the deciding factor between industry. products of equal value and quality. Environmentally 2. Increasing the consumer base:Variousstudies in Indian context shows that consumers are aware about

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Table - 1 : Traditional Vs. Green Marketing

Sl 4 Ps Treatment under Traditional concept New concept in green marketing No. 01 P-PRODUCT Raw material is Procured to transform it • Eco friendly into a product. The waste in the • Waste is minimized manufacturing process is disposed off. • Effective use of non-renewable energy sources • Waste of one product should serve as the raw material need of the another 02 P-PRICE Expecting profit at all levels at the cost • Price is spread throughout the of the environment lifecycle of the product • Fixed on purchase power parity • Environmental safety • Health of employees and the community is protected 03 P-PROMOTION Promotional strategies are rather more Environmental responsibility and commitment important to hold the consumers than should be a part of the corporate culture and educating them on green marketing they mission statement through promotional methods 04 P-PLACE Concentration of production plants. • Decentralization of manufacturing plants to avoid unnecessary transportation cost of raw materials • Skilled HR • Availability of green products nearer to the residential places Source: Compiled from secondary sources

green marketing and products. particular, one often finds distrust regarding the credibility 3. Meeting Government Legislation as well as receiving of green products. Therefore, to ensure consumer Subsidies from the Government: The GOI offers confidence, marketers of green products need to be subsidies to industries for implementing green and much more transparent, and refrain from breaching any clean technology. law or standards relating to products or business practices. The numerous challenges in the field of green 4. Cost Reduction:Reduction of harmful wastes from the marketing are as follows. manufacturing processes will cut down the cost of the final product that will lead to cost reduction of a. Need for Standardization : There is no the organization. standardization currently in place to certify a product as organic. Unless some regulatory bodies are 5. Corporate Social Responsibility: Adopting green involved in providing the certifications there will not practices /environment-friendly practices by the be any verifiable means. A standard quality control organization will allow their concern for the board needs to be in place for such labeling and environment as well as for the society. licensing. Green Marketing- Challenges b. New Concept : Indian literate and urban consumer Although a large number of firms are practicing green is getting more aware about the merits of Green marketing, it is not an easy job as there are a number of products. But it is still a new concept for the masses. problems which need to be addressed while The consumer needs to be educated and made aware implementing Green marketing. Many organizations want of the environmental threats. to turn green, as an increasing number of consumers' c. Patience and Perseverance : The investors and want to associate themselves with environmental-friendly corporate need to view the environment as a major products. Alongside, one also witnesses confusion long-term investment opportunity, the marketers need among the consumers regarding the products. In to look at the long-term benefits from this new green

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movement. It will require a lot of patience and no issued to completely adopt CNG in all public immediate results. transport systems to curb pollution. d. Avoiding Green Myopia : The first rule of green 4. ITC strengthened their commitment to green marketing is focusing on customer benefits i.e. the technologies by introducing =ozonetreated primary reason why consumers buy certain products elemental chlorine free bleaching technology for the in the first place. Do this right, and motivate first time in India. The result is an entire new range consumers to switch brands or even pay a premium of top green products and solutions: the for the greener alternative. It is not going to help if a environmentally friendly multi-purpose paper that is product is developed which is absolutely green in less polluting than its traditional counterpart. various aspects but does not pass the customer 5. Suzlon Energy is the world‘s fourth largest wind- satisfaction criteria. This will lead to green myopia. turbine maker is among the greenest and best Indian Also if the green products are priced very high then companies in India. Tulsi Tanti, the visionary behind again it will lose its market acceptability. Suzlon, convinced the world that wind is the energy Some other challenges ahead in Green Marketing Are: of the future and built his factory in Pondicherry to Green products require renewable and recyclable run entirely on wind power. Suzlon‘s corporate material, which is costly. It requires a technology, which building is the most energy-efficient building ever built demands huge investment in R& D for example, water in India. treatment technology. 6. IDEA Cellular is one of the best Indian companies, Though majority of the people are not aware of green IDEA, paints India green with its national use mobile, products and their uses and so majority of the consumers Save Paper campaign. IDEA has also set up bus are not willing to pay a premium for green products. shelters with potted plants and tendril climbers to convey the green message. As demands, taste and preferences of the consumer 7. Tuna manufacturers modified their fishing techniques changes, many firms see these changes as an because of the increased concern over driftnet opportunity to be exploited and have a competitive fishing, and the resulting death of dolphins. advantage over firms marketing no environmentally responsible alternatives. In India, around 25 per cent of 8. Xerox introduced a "high quality" recycled the consumers prefer environmental-friendly products and photocopier paper in an attempt to satisfy the appears that all types of consumers, both individual and demands of firms for less environmentally harmful industrial are becoming more concerned and aware about products. the natural environment. Nowadays, firms marketing 9. The Hewlett-Packard [HP] Company announced goods with environmental characteristics have realized plans to deliver energy-efficient products and services a competitive advantage over firms marketing non- and institute energy-efficient operating practices in environmentally responsible alternatives. its facilities worldwide. Green Marketing Initiatives in India 10. The Surf Excel detergent which saves water (advertised with the message-"do bucket 1. HCL eco Safe focuses on product lifecycle paanirozbachana"). management to ensure that our products right from when they are manufactured, bought by customers, 11. Philips Lighting's first shot at marketing a standalone recovered at their end-of-life and recycled after useful compact fluorescent light (CFL) bulb was Earth Light, life are done in an environmentally responsible at $15 each versus 75 cents for incandescent bulbs. manner Key initiatives undertaken through HCL eco 12. The energy-saving LG consumer‘s durables. Safe program. 13. Coca-Cola pumped syrup directly from tank instead 2. Maruthi Company has been promoting green of plastic which saved 68 million pound/year. practices since its inception. As a result the 14. Badarpur Thermal Power station of NTPC in Delhi is company has not only been able to recycle 100% of devising ways to utilize coalash that has been a treated waste water but also reduced fresh water major source of air and water pollution. consumption. The company has implemented rain 15. Barauni refinery of IOC is taken steps for restricting water harvesting to recharge the aquifers. Also, air and water pollutants. recyclable packing for bought out components is being actively promoted. We also have green buildings which are efficient in their use of energy, water and construction materials, and 3. New Delhi, capital of India, was being polluted at a which reduce the impact on human health and the very fast pace until Supreme Court of India forced a environment through better design, construction, change to alternative fuels. In 2002, a directive was operation, maintenance and waste disposal. The green

Special issue November 2015 Page 153 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 building movement, spearheaded by the Confederation 6. Deciding about Green Prices : Consumers today of Indian industry (CII) - Godrej Green business center, are willing to pay only a small premium or no premium has gained tremendous impetus over the last few years. at all for the green products. Pricing may become a From 20,000 sqft in 2003, India's green building footprint cause of concern when it comes to selling the product is now over 25 million sq ft. This is not to imply that all in the market, as its manufacturing may be firms who have undertaken environmental marketing expensive due to new technology involved. It therefore activities actually improve their behaviour. In some cases becomes the responsibility of the manufacturer to firms have misled consumers in an attempt to gain decide upon the pricing of the product. market share. In other cases firms have jumped on the 7. Applying "Green" Logistics : Distribution of goods green bandwagon without considering the accuracy of can also be designed such that they leave minimum their behaviour, their claims, or the effectiveness of their impact on the environment. Mere reduction in products. This lack of consideration of the true packaging and wrapping can contribute to a large "greenness" of activities may result in firms making false extent in reducing the waste and saving paper. or misleading green marketing claims. Efficient inventory management can also contribute Green Marketing Strategies in minimizing wastage in a big way. Green marketing strategies as consumers become more 8. Changing the Attitude towards Waste : Waste environmentally conscious, businesses must adapt a generated always does not necessarily have to be green strategy. Small businesses seeking to leverage an unhelpful result of production processes. A newer the power of "going green" should carefully coordinate understanding of the idea of waste has given birth to genuine actions and marketing strategies. a new market of recycled products. Also it may be so that which is deemed waste for a company may 1. Successful Market Segmentation and be a raw material for another. Concentration on Selected Market Segment : 9. Electronic Press Kit : Press kits typically include A company needs to focus on the market comprising a company history, product brochures, and of the green consumers. The company can run biographies of the company executives, photos and advertisement for its products in green focused press clips. Companies often send a press kit to media. It can also innovate of a new green product every media outlet in the area. A business could along with its existing products. Further, it can convert all of the documents and images into altogether launch a new strategic business unit electronic files and offer the kit as a downloadable aimed at green. folder on its website. The electronic press kit requires 2. Developing a New Generation of Green Product no paper and no postage. The website could even : Insufficient production processes and poor designing indicate that the electronic press kit is part of an of products can be very harmful for the environment ongoing effort to reduce the business' environmental that is why the companies should consider possible impact. negative effects on the environment and minimize 10. Electric/Hybrid Vehicles : Small-business owners them at the beginning of New Product Development. often serve as the most visible representative of the 3. Green Positioning : Companies interested in business itself. If a small business owner tries to positioning themselves as green should make sure rebrand the business as green, but drives a fuel that all the activities that it is involved in supports its inefficient truck or SUV, the green marketing effort projected image, so as not to cheat the consumers seems deceptive. Switching over to an electric or as well the media. hybrid vehicle serves as another visible reminder that 4. Applying Green Promotion : Successful promotion the business pursues a green policy. depends on choosing the right strategy and media 11. Creating Green Partnerships : It may be for promotion of green products. Any kind of green sometimes possible that a company may not have promotion becomes neutral unless it supported by proper knowledge about green marketing, under such corresponding corporate activities. circumstances the company can resort to making 5. Green Packaging : A business that manufactures strategic alliances with other companies, who and packages products can convert to eco-friendly already have been using green marketing. These packaging. Converting to biodegradable packaging kinds of green partnerships can aid in flow of provides customers with a visible symbol of the necessary knowledge and information for development company's commitment to "going green". The and effective implementation of green marketing. business can also leverage the eco-friendly 12. E-Newsletters : Many businesses offer monthly packaging as part of its advertising program to help newsletters to their customers. A business can cut draw in new environmentally conscious customers.

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paper waste and printing costs, while providing equal Conclusion or greater levels of content, by shifting over to e- Green marketing involves focusing on promoting the newsletters. In this case, the newsletter itself serves consumption of green products. Therefore, it becomes as marketing for the business and the delivery responsibility to adopt creativity and insight, and be method functions as an easy way to go green. committed to the development of environment-friendly Some of the other successful strategies of Green products. Green marketing is still in its infancy and a lot Marketing are as follows; Show potential customers that of research is to be done on green marketing to fully the company follow green business practices and could explore its potential. Main problems are Lack of reap more green on bottom line. consumer awareness, Limited scientific knowledge, Financial constraints, Deceptive marketing, Lack of For green marketing to be effective, company have stringent legal standards. There are sufficient use following strategies too. opportunities for green marketing but it may also face 1. Being genuine : The companies are actually doing lot of challenges as considerable percentage of what the business claim to be doing in the green population are not aware and also willing to know the marketing campaign and the rest of business policies affairs of green marketing initiatives. Hence proper are consistent with whatever the company is doing campaigns shall be used to educate them. Green that‘s environmentally friendly. Both these conditions marketer must find an opportunity to enhance product's have to be met for the business to establish the performance and strengthen customer's loyalty. kind of environmental credentials that will allow a green marketing campaign to succeed. References 2. Educating your customers : It is not just a matter 1. Anna Khan and Mohammed Naved Khan, Analysis of letting people know whateverthe companies are of Barriers and Strategies for Promoting Green doing to protect the environment; but also a matter Marketing,International Journal of Business and of letting them know why it matters. Giving your Management Tomorrow , August 2012, Vol. 2 No. 8. customers an opportunity to participate, 2. Davis and Joel J. "Ethics and Green Marketing." personalizing the benefits of environmentally friendly Journal of Business Ethics 11 (2)- 1992: 81-87. actions, normally through letting the customer take 3. Jacquelyn A. Ottman, The New Rules of Green part in positive environmental action. Marketing: Strategies, Tools, and Inspiration for 3. Know your customer : To sell a greener product to Sustainable Branding-J. Ottman Consulting, consumers, first the company need to make sure Inc.January 2011. that the consumer is aware of and concerned about 4. Mohanasundaram V, Green Marketing – Challenges the issues that its product attempts to address. and Opportunities, ZENITH - International Journal of 4. Empower consumers : Make sure that consumers Multidisciplinary Research - Vol.2 Issue 4, April 2012. feel, by themselves or in concert with all the other 5. Pavan Mishra and Payal Sharma, Green Marketing users of the company‘s product, that they can make in India: Emerging Opportunities and Challenges a difference. This is called empowerment? and it‘s Mishra, Journal of Engineering, Science and the main reason why consumers buy greener Management Education/Vol. 3, 2010/9-14. products. 6. Raghavendra andUsha, Green Marketing: It’s 5. Be transparent : Consumers must believe in the Strategies for Sustainable Development , Indian legitimacy of the product and the specific claims Journal of Marketing,June 2013, Volume No: 2 Issue: 4 the companies are making. Hence complete information need to be disclosed to make environmentally friendly economy. 6. Reassure the buyer : Consumers need to believe that the product performs the job it’s supposed to do them won‘t forgot product quality in the name of the environment. (Besides, products that don‘t work will likely wind up in the trash bin, and that‘s not very kind to the environment).

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MERGERS AND ACQUISITIONS OF INTERNATIONAL BANKING. PENETRATION STRATEGY IN EMERGING ECONOMY OF MEXICO Banco Santander México and Banca Serfin case

José G. Vargas-Hernández 1 Carlos Enrique Suárez Medina Abstract This paper explains the strategic penetration through mergers and acquisitions in international financial large corporate in emerging countries like Mexico and the clash of European and Mexican management cultures. As a case study is taken as a basis, the merger and consolidation of the Spanish BancoSantanderin Mexico, what was your strategy for fusion of Mexican banks? How was way of governance in the country? Concluding and Banco Santander through mergers and acquisitions have become the fourth strongest bank in Mexico and one of the strongest banks in the world, as part of the explanation is considered their form of governance. Key words: acquisitions, emerging economies, strategy, international mergers.

Introduction must take into account the changes that have to do in Implementing strategies according to Luna (2010) are the organization, with a focus on multi-business, such designed from the highest administrative controls as to improve vertical organization and diversify its addresses large corporate, which is the design of an products and services that will offer in the new market. action plan covering all corporate levels. Taking this idea, Complementing the model strategy, it should carry out, strategies designed by financial large corporate to grow implement it, evaluate it, and distribute it to all areas in and develop, they are designed and planned from the order to achieve a culture of change, development and top levels of its leadership. At the stage of penetration of growth, such as Banco Santander does from its new markets it is paramount and as part of the strategy, headquarters in . Banco Santander operates a to have people who are motivated, who know how the multidivisional structure; at the highest point of its business that are committed to the company, having organization's president is Ana Botin since the the ability to make modifications based on the situations September 10, 2014, to take the position left with the they encounter, they can create a corporate culture death of her father Emilio Botin. Along with her group (David, 2013). corporate staff in charge of managing, planning and When talking to diversify products and services, are designing new strategies, in the background, is similar or not, it has to take into account that there are composed of various heads of international areas, which diversifying of related and unrelated products. The way take care of the results of the different continents and to enter new markets, industries in other countries, is countries under their command (Vargas-Hernandez, full of challenges and decisions. Taking the best strategy, Guerra, Bojorquez Gutierrez Gutierrez Bojorquez, 2014). the company can achieve success. Otherwise, a bad Under the idea of the strategy, Pruthi, Wright and Lockett decision making strategy can lead failure and the demise (2003) mention that foreign companies that set up in an of the company. Currently, the technology plays an emerging economy have a high probability of strategic important role in the entry of companies into new development and control in emerging countries, which countries, especially technology of the information, are more inclined to operational development. Such is adding as an essential tool for the company. in the case of the Spanish group introduced to a financial Because it diminishes the problems of implementing a market like that of Mexico, which is considered as an model multi-business facilitates financial control and emerging economy, ordering its staff the training of the results, monitors performance, improve decision making, new staff and devise new forms of management, to react better and faster to the contingencies of the incorporate the structure of the Bank. company, and does not distort the information, all of Previously are defined as acquisitions the transfer control these on proper use and capacity. When a company is of all assets, operations and management of the target in one industry and, in one country, it can make the company, becoming the second company plant of the decision to venture into new unknown markets. However, bidding company. While the merger is defined as the

1. University Center for Economic and Managerial Sciences, University of , Mexico.

Special issue November 2015 Page 156 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 union of two companies to create a fully independent this financial system there are financial services those one combining the assets, operations and management granted by the various organizations that make up the of the two companies to enhance the advantages and financial system and facilitate the movement of money. leverage best practices from both to benefit of a better Among them are mainly financial intermediaries. Thus, positioning the market. However, it is mentioned that if in this way they perform their duties to intermediate there is no gain for the corporate enterprise, designated resources and enable the existence of the payment as arrogance hypothesis indicates that increasing the system in the economy, through the provision of various average value of the company pointing as the target (Roll, financial services. 1986). In this context, stands out the importance of the banking The target company at the time to make known in public sector, essential to achieve this goal, because it is offerings, mentioned that show increases in value but responsible for capturing the scattered savings in the over a few days the price falls to original levels, it is at economy, Combining and channeling nimbly as financing that point where it can fail after being targets of one or to individuals or companies with viable investment more proposed merger or acquisition by other companies. projects part and add value to the economy (CNBV, It mentions that at the time of the acquisition or merger 2015). In the case of the banking sector is sought the of the target companies, the prediction of the theory of financial margin, which is the result of the acquisition arrogance mentioned often brings a loss to both the costs of savers and investors, selling various products target company joined the bidding company, which tend and / or services and the performance of the placement to hide the amount of buying and selling. of resources through loans at rates higher than those paid by interest income from these savings. Malatesta (1983) mentions that in the part of the equity of the shareholders of the bidding companies, tends to At this point, the banks become attractive to large increase significantly and combined the bidder company international corporate groups seeking to position and the target company, when disclose their results, themselves in markets of other countries, by diversifying indicating increases that indicate obviously that the their products and services. They provide an opportunity changes in corporate controlling increase the market for growth and development for these corporations. In value. The concept of arrogance is reflected in the bidding the case of financial group Santander, which by leveraging company to buy the target company, on many economic factors of the fragile economy of an emerging occasions, in higher amounts than actually the target country like Mexico, the economic crisis that lived at company is worth. This leads to mistakes that can be the end of 1993 and government intervention to rescue harmful to the bidding company. the Mexican banking system, ending with the merger of two national banks, taking control of organizational, In mergers and acquisitions, as mentioned Peng (2010) operational and administrative culture. there are five groups which classify them: horizontal, vertical, conglomerate, friendly and hostile. In this sense, History of strategy, penetration and merger of Banco the way in which Banco Santander joins the Mexican Santander in Mexico economy, showing his arrogance, showing its economic Banco Santander has a presence in Mexico since 1956, power, by merging two national Mexican banks. in this when it first opened its doors as commercial office and sense, the theory of transaction costs explains that the providing a range of advice in . These financial merger increases costs due to contract creation to institutions were common at that time, since the law reduce or cancel the opportunism, while the agency prevailing at the time for foreign investments in 1969 did theory, describes the corporate governance can reduce not allow the participation of foreign credit institutions in uncertainty by a hierarchy and the combination of the the Mexican financial market. resources they possess as firms merged creates the right synergy to early growth and development in the The small representative office, offered few services, country in which it entered, according to the resource- advising and giving guidance on any commercial or based (Vargas-Hernandez, et al. 2014) approach. banking operation with its home country, Spain. This was done through intermediaries of some Mexican banks Brief description of Mexican Financial System that lent their services. In the late 80s, the Mexican The financial system in Mexico plays a central role in financial system experienced a series of transformations the functioning and development of the economy. It is and changes in the way of regulations. In 1989 the law composed mainly of various intermediaries and financial on foreign investment, opened the doors of the national markets, through which a wide range of instruments economy to foreign investment and allowed the mobilize savings users of this system to its most international investment banking, could settle in the productive and profitable uses (Banxico, 2015).Within country.

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Taking advantage of this first opportunity, it was settled Brief history of Banca Serfin Santander Investment, which based its activities in the While the history of Banco Serfin, come from the Banco capital markets and money. The next step, the de Londres, México y Sudamérica (Bank of London, deregulation of the insurance sector, allowed the Banco Mexico and South America), the first commercial bank Santander entered Iberomexicana Insurance Company, in the country. Founded in 1864 by a group of mostly beginning a promising expansion, opening offices and British partners, it was transformed in 1888 in the Banco launching new products and services for the Mexican de Londres y México (Bank of London and Mexico), to population. In 1991, Banco Santander, under the name suit the country's legislation approved at the end of the Iberomexicana Insurance changed its name to Santander century. Later in the 90s, the general acceptance Insurance and invited Metropolitan Life, one of the largest company (financial acceptances) acquired the majority life insurers in the United States, to join the new company of shares in the company. The bank was controlled by in Mexico and operate jointly on the market Mexican the Garza family, the owners of a large variety of life insurance. companies in . That company and the bank The entry of Banco Santander in the banking market of moved in 1964 to join a larger conglomerate, known as Mexico was a result of two major changes in the financial the Grupo Moneterrey (Monterrey Group). regulation of the country. The first is privatization of banks The name of Serfin dates back to 1977. In 1982 passed that had previously been nationalized by the Mexican to the Federal Government, following the nationalization government in the first intervention to rescue domestic that affected most of the Mexican banking system. The financial institutions. Second, the signing of Free Trade company returned to private hands in the early 90s, when Agreement (NAFTA), which facilitated foreign commercial it was bought by Adrian Sada Gonzalez, a member of banks to enter the Mexican market. To these two the same family who had owned the bank before opportunities, the Banco Santander responded with the privatization intervention by the Mexican government. acquisitions of two Mexican national banks: Banco However, complications and problems arising out of the Mexicano in 1997 and the Serfin Financial Group in 2000 1995 financial crisis forced the Mexican government to (Martin Aceña, 2007). intervene to Banco Serfin for the second time and Brief history of Banco Mexicano implement a comprehensive program to rescue the entity called FOBAPROA. The final transfer of ownership took The Banco Mexicano (Mexican Bank) was founded in place in 2000, when Grupo Santander Central Hispano 1932by former President Abelardo Rodriguez ,which was acquired the bank Banco Serfín. acquired in 1955by the Mexican Society of Industrial Credit. A few years later, in 1958, the Banco Mexicano In addition, Banco Santander, two major groups attended merged with the Banco Español (Spanish Bank), a credit the award contest convened by the Institute de society which was born long ago under the name of Protección al Ahorro Bancario (Institute for Protection Banco Fiduciario (Trust Bank).In 1979, the Banco of Bank Savings, IPAB and before FOBAPROA): Mexicano (Mexican Bank) became universal bank, taking Banamex and HSBC. For its part, Banco Santander was advantage of changes in banking legislation and change presented through its subsidiary, Banco Santander exits name to Banco Mexicano Somex. Like many other Mexicano, who pitched a third proposal to merge the creditors and lenders, it was nationalized and sold after Banco International (International Bank), showing its the Group Financiero Inver Mexico (Inverméxico Financial structure and economic power, but there were two Group), which kept it empower until its sale to Banco circumstances under which these objectives have not Santander in April1997, following the government’s materialized. First, the antitrust laws governed at the decision toped foreign investment and entry international time by the Government of Mexico, forbade Banco banking. Santander Mexicano the purchase of the bank and second, the differences in types of management of both After a capital increase and its merger with a small institutions, were not allowed to pursue it. investment bank belonging to the conglomerate of companies created by Santander Investment, the old The excellent executives’ cadre of Banco Santander Banco Mexicano Somex, recovered its roots and adopted Mexicano headed the operation, the knowledge that has the name of Banco Santander Mexicano. Commercial already possessed the Mexican financial market and characteristics of BancoMexicanoSomex were aimed the strength and firmness of its bet. With the acquisition at the economically medium-high population of the of Serfin, also reinforced the same year the purchase of country and to support small and medium enterprises in an additional 15% of Santander Mexicano, thus raising Mexico (Martin, 2007). the stake to 99%, the Spanish Group was at the forefront of the Mexican financial system, one of the faster growths of the entire region. Banco Santander was the owner of

Special issue November 2015 Page 158 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 both entities, but decided to keep its independence for a time, to strengthen competitiveness: commanding Serfin Adolfo Lagos and Santander Mexicano under the tutelage of Marcos Martinez. Finally, in September 2002, both companies merged, creating Santander Serfin. Yet another splendid operation was crowned this year. The sale of 24.9% stake in the company to Bank of America, oldest and closest ally since Bank inter was constituted, and it was a strategic and financial success that further narrows the link with the then second American credit institution, leaving a mark of undoubted strength in the market. Mexican franchise of Banco Santander was definitively established on January 1, 2005 and the general direction was taken by Marcos Martinez, one of the most recognized Latin American financial Banco Santander (Martin, 2015). BancoSantandertoday Banco Santander is one of the strongest financial groups in market value, according to the international ranking, ranking No. 8Forbes(2015). Table - 1 : TopWorldBanks

Market Ranking Bank Country Sales Profits Assets value

1 ICBC China $166.8 B $44.8 B $3,322 B $278.3 B

2 Bank of China China $120.3 B $27.5 B $2,458.3 B $199.1 B

3 JPMorgan Chase United States $97.8 B $21.2 B $2,593.6 B $225.5 B

4 Wells Fargo United States $90.4 B $23.1 B $1,701.4 B $278.3 B

5 HSBC Holdings United Kingdom $81.1 B $13.5 B $2,634.1 B $167.7 B

6 Citigroup United States $93.9 B $7.2 B $1,846 B $156.7 B

7 Bank of America United States $97 B $4.8 B $2,114.1 B $163.2 B

8 Banco Santander Spain $56.4 B $7.7 B $1,532.3 B $109.4 B

9 Commonwealth Bank Australia $39.6 B $8.1 B $696.2 B $117.1 B

10 Royal Bank of Canada Canada $38.9 B $8.3 B $857 B $89.3 B

11 Westpac Banking Group Australia $35.6 B $6.9 B $674.5 B $94.2 B

12 TD Bank Group Canada $32.7 B $7 B $851.9 B $80.4 B

13 ANZ Australia $32.6 B $6.7 B $676.7 B $77.6 B

14 National Australia Bank Australia $33.4 B $4.9 B $772.9 B $71.7 B

15 ING Group Netherlands $65.7 B $2.6 B $1,195.7 B $58.9 B

16 Lloyds Banking Group United Kingdom $65.6 B $1.9 B $1,333 B $84.4 B

17 Société Générale France $54.2 B $3.6 B $1,583 B $40.7 B

18 Bank of Nova Scotia Canada $27.9 B $6.4 B $671.9 B $61.3 B

19 Deutsche Bank Germany $56.4 B $2.2 B $2,067.6 B $49.7 B

20 Mizuho Financial Japan $27 B $6.1 B $1,634.7 B $43.6 B

21 US Bancorp United States $20.3 B $5.8 B $406.2 B $77.2 B

22 Standard Chartered United Kingdom $24.8 B $2.6 B $725.9 B $39.8 B

23 Bank of Montreal Canada $20.1 B $3.8 B $530.3 B $39.7 B

24 PNC Financial Services United States $16 B $4.2 B $345.1 B $48.2 B

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25 Bank of New York Mellon United States $15.1 B $2.5 B $385.3 B $45.1 B

26 Natixis France $23.7 B $1.5 B $714.4 B $24.5 B

27 BB&T United States $9.7 B $2.2 B $188.4 B $28.3 B

28 BNP Paribas France $124.5 B $208 M $2,514.2 B $78.4 B

29 FirstRand South Africa $8.3 B $1.9 B $84.6 B $26.9 B

30 Barclays United Kingdom $53 B $-287 M $2,117.3 B $63.7 B

31 Royal Bank of Scotland United Kingdom $35.6 B $-4.6 B $1,638.4 B $60.2 B

32 Regions Financial United Kingdom $5.4 B $1.2 B $120.4 B $12.8 B

Source : Own elaboration with data of Forbes, best Banks of the World. Banco Santander's presence international Lyman be found in countries such as , Mexico, , , United States, United Kingdom, Germany, , Holland, Austria, Italy and Belgium. In Mexicoit has a network of branches distributed throughout Mexicototaling1310 points of business centers, which have led to be positioned at number4 at national level, below , due to merger it had with IXEBanco. But the market share it has been consolidated as one of their ference bank in the country, for its range of products and services ,diversified across its network of business points. Table - 2 : Ranking of Banks in Mexico

Total Assets Rank Bank or Bank Group US$ billion

1 BBVA Bancomer 108.81

2 Banamex 91.84

3 Banorte 70.9

4 Santander México 61.83

5 HSBC México 38.99

6 Inbursa 26.1

7 Scotiabank Inverlat 15.83

8 Deutsche Bank México 13.37

9 Interacciones 9.85

10 Afirme 7.42

11 Banco del Bajio 7.12

12 Bank of America México 6.95

13 Ixe Banco 6.59

14 ING Bank México 6.25

15 Banco Azteca 6.02

16 BanRegio 5.12

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17 Monex 3.65

18 Mifel 3.53

19 Invex Controladora 3.35

20 Banco J.P. Morgan 3.07

Source : Based on data fromInfoBank, BankrankinginMexico.

On the other hand, the contribution that gives Mexico to the financial group Banco Santander's headquarters in Spain is one of the strongest in Latin America level, contributing to the group of 7%global.This indicates that the penetration of the Mexican market by Banco an tender is due to the market strategy that has been or so many years, and to the merger of key banks for consolidation. However, considering that one of the most expensive financial systems in the world, is the country's contribution with the sum of the costs f all products and services provided by the bank in all their branch networks, which are diversified in products and services for each economic sector that requires it. Distribución del beneficio atribuido por negocio geográfico. USA Spain: 10% Rest of 15% Latinoamérica : 5% SCF: Chile: 10% 5%

México: : 7% 4% Portugal: 2% Rest of Europa: 1% Brazil: United Kingdom: 21% 20% Graph - 1 : Distribution of attributable profit by geographic business Source : Authors' calculations based on data from financial report 1T15 Banco Santander It is mentioned that the growth of Banco Santander Mexico in annual data as attributes benefits to its customers, with accounts at the bank's investment is an increase of 12.5% over the 1T14 and 1T15.

ATRIBUTED BENEFITS ATRIBUTED BENEFITS Millions of constanteuros millions of constant euros 1T14 149 2T14 179 200 3T14 173 100 4T14 192 0 1T14 2T14 3T14 4T14 1T15 1T15 167

Graph - 2 : Profit attributable. Source: Authors' calculations based on data from financial report 1T15 Banco Santander

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Conclusions • Banco Santander, (2015), InformeFinanciero 1T 2015 In this analysis it can be concluded that Banco • http://www.santander.com/csgs/Static BS? blobcol= Santander is one of the largest financial groups worldwide, urldata&blobheadername1=content-type which has proved highly trained and committed to the &blobheadername2=Content-Disposition& performance of the institution at global level, based on blobheadername 3=appID&blobheadervalue1 effort and strategies, implementation of these strategies =application%2F pdf&blobheadervalue2 =inline%3 and use of time, to achieve consolidation in financial Bfilename% 3D1008%5C556%5CFolleto+1T15+ca markets that have ventured. The main strategy of Banco stellano.pdf &blobheadervalue 3=santander.wc . Santander, in the introduction to its system in other CFWCS ancomQP01 &blobkey=id&blobtable= countries, is to merge with financial institutions that allow Mungo Blobs&blobwhere =1278707672086&ssbinary it to achieve its market position, adding the efforts to = true, fecha de consulta, 14/05/2015. implement the way to work which it is to manage each of its elements for the success of the group in a shortest • Comisión Nacional Bancaria y de Valores (CNBV), possible time. With this, add and achieve profitability in (2015). BancaMúltiplehttp: //www .cnbv .gob .mx / the shortest time. SECTORES-SUPERVISA DOS/BANCA-MULTIPLE/ Paginas/ default.aspx , fecha de consulta, 12/05/ The incorporation in emerging economies is one of the 2015. strategies that Banco Santander has worked. Most Latin • American countries are considered emerging economies. David, F. R. (2013).Conceptos de administraciónes- Incidentally, in most of these countries it has a presence tratégica, Pearson Educación de México. Santander Financial Group. With all of them, the way it • Forbes (2015).Principalesmejoresbancos, capturado was introduced to these, it is very similar to the way it de had entered into Mexico. Its strategy was gradual, taking • http://www.forbes.com/global2000/list/#industry advantage of the opportunities of economic instability :Major%20Banks, fecha de consulta 11/005/2015. affecting these countries, to be gaining positioning, • Info Bancos (2015). Ranking de Banco en México, developing its own management and putting people who capturado de have grown up in its institution in key positions, to create brand loyalty. • http://infobanco.net/ranking-de-banco-en-mexico/, fecha de consulta, 12/05/2015. The succession of power to the death of president and • Luna González, A. C. (2010). Administración majority shareholder of Group Santander, Emilio Botin,in to the daughter Ana Botin, was without mishap, since Estratégica, Grupo Editorial Patria. she knew the company and running it, since she was • Malatesta, P.H. (1983). The wealth effect of merge also responsible at national level in one of the director activity and the objetive functions of merging firm, ships in Europe .The long-term vision to consolidate and Journal of financial economics. vol. 11 pp. 155 – 181 strengthen its structure ,has led Banco Santander to be • Martín A. P. (2007). 1857 – 2007 Banco Santander one of the most solid, effective and dynamic financial 150 años de historia, Editorial Turner. groups worldwide. Its rapid growth, has led it to win the • Peng, M. (2010). Strategies At The Corporate Level. recognition and trust of its customers, as a reliable and Global Stategy.2nd Ed. Cengage Learning. solid bank in its structure. • Pruthi, S., Wright, M. and Lockett, A. (2003). Do References foreign and domestic venture capital firms differ in • Banco de México (Banxico), (2015), Sistema their monitoring of investees?, Asia Pacific Journal Financiero of Managemnet, • http://www.bancodemexico.gob.mx/sistema- • Roll, R. (1986) The hubris hypothesis work and financiero/index.html, fecha de consulta, 12/05/2015. procurement, Global business. 2da ed. Cengage • Banco Santander, (2015), Historia Learning. • • http://www.santander.com/csgs/Satellite/ Vargas-Hernández, J. G., Guerra, E., Bojórquez CFWCSancomQP01/es_ES/Corporativo/Acerca-del- Gutiérrez A.Bojórquez Gutiérrez F., (2014). Grupo/Mas-de-un-siglo-de-historia/1856- GestiónEstratégica de Organizaciones. Buenos 1930.html?wpid=1278697994821, Fecha de consulta, Aires, Argentina. VOROS S.A. (Diciembre, 2014). 14/05/2015.

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A STUDY ON CUSTOMER SATISFACTION OF AKSHAYA CENTRES

Krishna.R1 Ann Alu Mathew2 Abstract Customer satisfaction is a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and part of the four prospective of balanced sore card. the study focused on the customer satisfaction of the Akhaya Centres. Primary data were collected for the study by using a pre sutured questionnaire among the 50 sample respondents. The study was analyzed with the help of percentage, two way tables and graphs. The study shows that the customers are satisfied with the services rendered by the Akshaya Kendra. However they want more services under the purview of these centers. Key words: Customer satisfaction, service providers, Infrastructure, government services

Introduction difference between perceived performance and Akshaya, an innovative project implemented in state of expectations.. A key premise in customer satisfaction Kerala aimed at bringing the digital divide, addresses is understanding the needs and meeting or exceeding the issues of ICT access, basic skills. Sets and the expectations of customers.. Customer Satisfaction availability of relevant content. Quality ICT dissemination is a marketing tool and a definite value added benefit. It and service delivering facilitates (Akshaya Centers) are is often perceived by customers as important as the set up within a maximum of two kilometer for any primary product or service your organization offers. household and networked leveraging enterpreur ship. It Akshaya e-literacy centre Canvas of services include was implemented jointly by the Kerala IT Mission and e-literacy, e-District, CHIAK RSBY and AABY Dept of Science and Technology. Akshaya was registrations, online ration card applications , Aadhaar inaugurated on 18th November 2002 by Dr.A.P.J Abdul enrolment, utility bill payment through e-Pay and FREES, Kalam, the honorable president of India. Akshaya has e-ticketing, GKSF registrations, Malayalam computing, taken giant strides in the field of ICT Knowledge NRK welfare fund, insurance services, Intel learn, IGNOU dissemination and citizen service delivery. Akshaya has courses, E-krishi, medical transaction insight and proved its mark as the most efficient and financially viable computer training . Akshaya has shown its mettle in Common Service Centre model in India. each one of these services.As the customers awareness and their level of satisfaction is play a key role in the Akshaya project is an enormous step towards making success and smooth running of these centers the study Government accessible to citizens, in ways that can focused on the customer satisfaction of the Akhaya not only save huge costs to government but also make Centers. it more transparent and efficient in its day to day interactions with common man. Akshaya e-literacy Objectives centre have transformed them into effective common To find the customer satisfaction relating to services service centre (CSCs) that help the public to avail a provided by Akshaya centers. multitude of G2C, G2B as well B2B services under one Data Collection and Methodology roof. At present close to 2300 Akshaya e-centers spread across Kerala have been setup with every Panchayat This is an empirical and analytical study based on mainly having at least two centers. primary data in order to evaluate the customer satisfaction on Akshaya Centres. Secondary data are Purpose of the Study gathered together from various sources such as According to Philip Kotler Satisfaction is a person’s magazines and internet etc. Pathanamthitta District- feeling of pleasure or disappointment resulting from Kaviyoor Panchayat, was selected as the area under comparing a products perceived performance in relation the study. A sample of 50 persons was selected for the to his or her expectations. Customer satisfaction is the study from the selected Panchayat. Personal interview level of persons felt state resulting from comparing a was conducted among the sample respondents. By using products perceived performance in relation to the persons a pre structured questionnaire. Percentage analysis two expectation. This satisfaction level is a function of the way tables, diagrams and graphs were used to analyse and present the data.

1. Final year M.com Students Madras Christian College, Chennai. 2. Final year M.com Students Madras Christian College, Chennai.

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Analysis and Discussions Table - 4 : Showing the Distribution According To The Service Rendered Table - 1 : Showing Distribution According To Gender Service Number of Respondents Percentage Particulars Number of Respondents Percentage E-district 18 36 MALE 31 62 E-grant 1 2 FEMALE 19 38 E-pay 5 10 TOTAL 50 100 Source: primary data E-krishi 6 12 It is clear from the above table that 62% of the E-aadhaar 7 14 respondents are male, whereas female respondents Others 13 26 constitute only 38%. Total 50 100 Table - 2 : Showing Occupation Wise Classification Source: primary data Occupation Number of Respondents Percentage Among 50 respondents 36% availed e-district, 2% for e- Government grant, 10% for e-pay, 12% for e-krishi, 14% for e-aadhaar Employed 5 10 and 26% for other services. Private Table - 5 : Showing Whether the Doubts Are Clarified Employed 20 40 Response Number of Respondents Percentage Student 21 42 Yes 47 94 Farmer 0 0 No 3 6 Others 4 8 Total 50 100 Total 50 100 Source: primary data Source: primary data Among 50 respondents 94% says that their doubts are The study shows that 10% are government employed, clarified while 6% says their doubts are not clarified. 40 % are private employed, 42% are students and others Table - 6 : Showing Approach of The Entrepreneur constitute 8%. Particulars Number of Respondents Percentage Table - 3 : Showing the Sources of Information of Services of Akshaya Highly Satisfied 28 56 Particulars Number of Respondents Percentage Satisfied 22 44 Media 7 14 Dis Satisfied 0 0 Public 16 32 Total 50 100 Direct Contact 27 54 Source: primary data Total 50 100 Above table depicts that 56% are highly satisfied with the approach of entrepreneur while 44% are satisfied. Source: primary data Majority of the respondents know about the services of Table-7 : Showing the Working Hour Convenience Akshaya through direct contact that constitute 54%, Particulars Number of Respondents Percentage 32% of respondents through public and 14% Yes 49 98 No 1 2 Total 50 100

Source: primary data

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Above table depicts that 98% are convenient with the Table -10 : Showing the Satisfaction of Services working hours while 2% are not convenient. Provided Delays in meeting the needs Particulars Number of Respondents Percentage Among 50 respondents 88% responded that there is no Highly delay while 12 % responded that there is delays in Satisfied 26 52 getting their needs done. Satisfied 24 48 Figure - 1 : Showing The Distribution of Respondents According To Delays In Needs Dis Satisfied 0 0 Total 50 100

Source: Primary Data 12% Table depicts that 52% are highly satisfied with the services provided while 48% are satisfied.

yes Table -11 : Showing the Preference of More no Government Services

Particulars Number of Respondents Percentage 88% Yes 49 98 No 1 2 Total 50 100 Service Charges Source: Primary Data Table depicts that 90% says that charges are reasonable while 10% says charges are not reasonable. Table depicts that 98% prefer to include more services through akshaya while 2% does not prefer. Table - 8 : Showing Preference of Services Table -12 : Showing the Location. Particulars Number of Respondents Percentage Suitability of Number of Percentage Services Location Respondents From Akshaya 46 92 Yes 49 98 Direct Service 4 8 No 1 2 Total 50 100 Total 50 100 Source: primary data Table depicts that 92% of the respondents prefer service Source: Primary Data from akshaya while 8% prefer direct service from offices. Table depicts that 98% of respondents say that akshaya centre’s location is ideal while 2% say its location is Table - 9 : Showing About the Updating On Services not ideal. Particulars Number of Respondents Percentage Table -13 : Showing Akshays Role in Getting Yes 41 82 Government Services No 9 18 Particulars Number of Respondents Percentage Total 50 100 Yes 48 96 Source: primary data No 2 4 Table depicts that 82% of respondents are updated Total 50 100 about the services provided while 18% are not updated. Source: Primary Data Table depicts that 96% agree that akshaya has played a vital role in getting government services to public while 4% does not agree.

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Table -14 : Satsfaction towards infrastructural facilities • Majority of the respondents i.e. 82% say that they are updated with the services. Particulars Number of Respondents Percentage • Analysis of the data reveals that respondents i.e. Highly 52% are highly satisfied with the services provided. Satisfied 18 36 • Majority of respondents i.e. 98% prefer to include Satisfied 32 64 more government services through Akshaya. Dis Satisfied 0 0 • Majority of respondent’s i.e. 94% say that their doubts are clarified properly. Total 50 100 • Majority of respondents i.e. 98% say akshaya’s Source: Primary Data location is ideal. Above table depicts that 64% of respondents are satisfied • Analysis of data reveals that Akshaya has played a with infrastructural facilities provided while 36% are highly vital role in getting government services to public. satisfied. • Majority of respondents are satisfied with the infrastructural facilities. Table -15 : Showing Whether Akshaya Centers Has Helped In Bringing Down Corruption • 90% of respondents say that Akshaya has helped in bringing down corruption Particulars Number of Respondents Percentage Suggestions Yes 45 90 It is the active participation of people which makes any No 5 10 program meaningful. Total 50 100 • Therefore feedbacks should be taken. Source: Primary Data • Awareness programs should be organized to the Table depicts that 90% of respondents agree that people. akshaya has helped in bringing down corruption while • Needs of the community should be developed and 10% does not agree. modified time to time accordingly. • Findings Infrastructural facilities should be improved. • • The genders wise classification of data shows that As people prefer service from Akshaya include more majority of the respondents are males. services. • Majority of respondents are students i.e. 42%. Conclusion • Analysis of data shows that majority of respondents Akshaya centers play a vital role to make the people come to know about the services through direct avail the government services.. However working hour contact. convenience and cost are two factors that are to be • Out of 50 respondents, majorities have come for e- considered to reach people to the akshaya kendres Most district service. of respondents are satisfied with services provided by them and they are also in demand for the more service • Analysis of the data shows that approach of offers through the Akshaya centers. entrepreneur is highly satisfied i.e. 56%. • Analysis of data reveals that the service charges are References reasonable. • 1 Aaker, D. A. and Keller, K. (1990), Consumer • Analysis of data reveals that working hour is Evaluations of Brand Extensions. Journal of convenient. Marketing. 54 (1): 27-33 • Majority of the respondents i.e. 88% say that there • Bent (1998)” SWOT- lessons for marketing strategy is no delay. development”; vol 10(2);

Special issue November 2015 Page 166 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 CORPORATE SOCIAL RESPONSIBILITY FOR RURAL INDIA

Mithun Nair 1 Dr.Hari Sundar.G2 Abstract The Council for Sustainable Development state that “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (WBCSD, 1999). Thus, the CSR has two fold meaning. On one hand, it exhibits the ethical behavior towards its internal and external stakeholders. On the other hand, it denotes the responsibility of an organization towards the environment and society in which it operates. CSR is regarded as tool through which companies give something back to the society. It involves providing innovative solutions to societal and environmental challenges. But the challenge work of development professional and business community is to identify CSR priorities and the areas of interventions which are meaningful in the context of rural development sector. Therefore, there is a necessity to study and understand how corporate enterprises are using CSR initiatives and what is the impact of CSR actions on socio-economic development of people in rural areas. This conceptual paper is a humble attempt to introduce CSR practices of corporate enterprises in section one. It describes the present study which includes objectives, methodology and limitations of the study. Section three discusses current status of CSR and business interest. Later part talks about challenges in context of CSR and section six conclude the study. Key words: Corporate Social Responsibility (CSR), Rural Development, Stakeholder, Social responsibility, Philanthropy, CSR audit, Economic development

Introduction ASSOCHAM, 2008). As a result of this moving from purely As we all know, a major part of the India’s poorest people profit to profit with social responsibility, many corporate lives in villages and these villages are in a state of neglect are endorsing the term ‘Corporate Social Responsibility and underdevelopment with impoverished people. The (CSR)’. It is essentially a concept whereby companies difficulties of hunger, ignorance, ill health, high mortality decide voluntarily to contribute to the Society to make it and illiteracy are most acute in rural areas. This is not better and environmentally cleaner (European only because of shortage of material resources but also Commission, 2001). Generally, CSR is understood as because of flaws in our planning process and investment “the commitment of business to contribute to sustainable pattern. India has the capabilities to meet these economic development by working with employers, their challenges in rural areas. families, the local community and society to improve their quality of life, in ways that are both good for business However, the efforts of Governments of India may not be and good for development. A widely quoted definition by adequate to provide basic services to its citizens. It is the World Business being increasingly recognized that progress and welfare of a society is not only the responsibility of the Objectives of the Study Government alone, but many more participants need to • To study and understand the CSR initiatives being be involved to attain the development goal. The corporate taken by organizations for rural development. sector has a pivotal role to play in ensuring private • To examine the corporate approach to work and their investment flows to those rural areas that have been mode of action for implementation for CSR initiatives. excluded of the development process so far and also to • To assess the impacts of CSR actions on work for sustainable development of rural areas in socioeconomic development of rural India. general. Scope of the Study Over the past few decade, as a significance of rise in globalization and pressing ecological issues, the Scope of the study is limited to study concept of perception of the role of corporate in the broader social corporate social responsibility (CSR) in the country, how context within which it operates, has been altered. organization taking it and working towards it. And what Corporate considers themselves as part of society and could be road ahead in Indian Context and mostly accordingly act in a social responsible way that goes focusing on the corporate social responsibility (CSR) beyond economic performance (KPMG and and its impact on rural development in context of India.

1. Research Scholar, Hindustan University 2. Associate Professor, SNGCE Kolenchery

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Research Methodology responsibility, arises from the fact that a business The study was conducted using mainly secondary data enterprise derives several benefits from society, which and information. Secondary data has been collected must, therefore, require the enterprise to provide returns through annual reports of Ministry of Human Resource to society as well. Above points establishes the stake Development, Ministry of Education, Economic survey, of a business organization in the good health and Articles and review of reputed authors published in wellbeing of a society of which it is a part. More national and international journals etc. importantly, in this modern age of information technology and emphasis on transparency, consumer of any product Limitations of the study or service are not likely to feel satisfied in buying from The main limitation of this paper is that this study has an organization that is seen to violate the expectations only focused on a small sample of Indian companies. of what is deemed to be ethically and socially desirable? Secondly, information collected from print literature, Corporate Social Responsibility (CSR) in India websites of these companies and no primary data were collected directly from the stakeholders through World has made full circle to emphasis this concept of interviews or surveys. CSR through an articulation of the principle of social responsibility of business and industry. And this trend Concept of Corporate Social Responsibility is no different in India either. Mahatma Gandhi, the Corporate Social Responsibility (CSR) is regarded very charismatic leader who brought the cause of India's important for policies, practices and programs that are freedom from British rule, was a person who in several integrated into business operations, and decision-making respects was ahead of his time. His view of the ownership processes throughout the organization, wherever the of capital was motivated by the belief that essentially companies does business and it includes current and society was providing capitalists with an opportunity to past actions as well as future impacts. CSR involves manage resources that should really be seen as a form addressing the legal, ethical, commercial and other of trusteeship on behalf of society in general. In June expectations society has for business, and making 2008, a survey was carried out by the Times Foundation decisions that fairly balance the claims of all key with the aim of providing an understanding of the role of stakeholders. CSR aims at “achieving commercial corporations in CSR. The findings of study revealed that success in ways those ethical values and respect over 90 percent of all major Indian companies surveyed people, communities, and the natural environment.” were involved in CSR practices. In fact, finding suggests Simply put it means “what you do, how you do it, and that private sector was more involved in CSR activities when and what you say.” Several kinds of terms have than the public and government sector organizations. been used interchangeably with CSR. They include The leading areas that corporations were involved in were business ethics, corporate citizenship, corporate livelihood promotion, health, environment, education and accountability, sustainability and corporate responsibility. women's empowerment (S. Ghosh and P. K. Ghosh, The issues that represent an organization’s CSR focus 2011). vary by size (small, medium and large), sector (for Current Status of CSR in India example, financial institutions, infrastructure providers, textile manufacturers, agriculture producers, supermarket CSR has been practiced in India from long time. retailers, etc.) and even by geographic region. In its Corporate like the Tata Group, the Aditya Birla Group, broadest categories, CSR typically includes issues ONGC and Indian Oil Corporation, are few name whom related to business ethics, community investment, have been involved in serving the community ever since environment, governance, human rights, the marketplace their inception. Many organizations have been doing their and the workplace. part for the society through donations and charity activities. But today, CSR in India has gone beyond Need for Corporate Social Responsibility (CSR) in merely charity and donations, and is has approached in India a more organized manner. It has become an inseparable All the interests of stakeholders and the actions of part of the corporate strategy. Companies have effective managers of any business organizations have to be and efficient CSR teams that devise specific policies, governed by the laws of economics, requiring an strategies and goals for their CSR works and set aside adequate financial return on investments made, but in finance to support them. These programs, in many cases, reality the operations of an enterprise need to be driven are based on a clearly defined social philosophy or are by a much larger set of objectives that are being defined closely aligned with the company’s ?business expertise. under the term CSR. The broad rationale for a new frame Employees become the strength of these creativities of ethics for corporate decision making, which clearly and undertake their time and contribute their skills, to constructs and upholds an organization's social implement them. CSR Programs could range from overall

Special issue November 2015 Page 168 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 development of a community to supporting specific to newbie’s, GCPL rolled out 'Project Vijay' with the intent causes like healthcare, education, environment etc. Best of absorbing a large number of the trained youth for its practices followed by Indian Companies related to CSR own need. The rest are assured job in other firms with are as follows: an average salary in the Rs 5,000-7,000 range. Over 4,500 students have already been trained, around 30- • Public sector companies such as such as ONGC, 40% of who have been placed across FMCG sales, agri- Indian Oil Corporation and SAIL has been spending sales and sectors like security, hospitality and retail. 0.75-1 % of their net profits on CSR activities. In 2007- Although the program is being offered free of cost, GCPL 08 Rs. 246.70 crores was spent by oil PSUs on CSR maintains a bench of about 90% who would be certified activities. ONGC?s CSR projects focus on higher at the end of the course. "After getting certified, there is education, grant of scholarship and aid to deserving a dramatic change in the confidence levels of the young pupils of less privileged sections of society, individuals. It also creates a lot of positive 'word of mouth' facilities for constructing schools etc. SAIL has taken about GCPL itself," said Rahul Gama, VP (HR), GCPL successful actions in environment conservation, (N.Singh, 2012) which is keen on setting up a future- health and medical care, education, women upliftment ready sales organization. providing drinking water. They being thought from basic communication skills to • BHEL & Indian Airlines have been acclaimed for customer interaction and personality development, disaster management efforts. BHEL has also adopted students are taught how to deal with customers while 56 villages having nearly 80,000 inhabitants. making a sales call. The project has been rolled out in • A private firm such as Reliance Industries and three states in underdeveloped states such as Madhya Mahindra & Mahindra has been involved in CSR Pradesh, Chhattisgarh and Orissa and it will be taken activities from long time. Reliance Industries initiated to 10-12 states by next few years. a project named as “Project- Drishti” to bring GCPL is not the only company working on corporate • back the eyesight of visually challenged Indians from social responsibility (CSR) role with a clear business the economically weaker sections of the society. This objective in mind. Others firms are working in CSR for project has brightened up the lives of over 5000 people business benefits include Mahindra & Mahindra (M&M), so far. Mahindra & Mahindra launched a unique kind Hindustan Unilever (HUL) , Marico and Procter & Gamble of ESOPs- Employee Social Option in order to enable (P&G). M&M's watershed project covering 32 villages in Mahindra employees to involve themselves in socially Damoh district, Madhya Pradesh, was set up with the responsible activities of their choice. primary goal of conserving water, soil and environment. • GlaxoSmithKline Pharmaceuticals? CSR programs The dam covers about 10,000 hectares, 4,000 primarily focus on health and healthy living. They work households and 20,000 people. M&M feels overall in tribal villages where they provide medical check- household income is expected to almost double as a up and treatment, health camps and health result of the project (True Volunteer Foundation, 2010) awareness programs. They also provide money, medicines and equipment to non-profit organizations So question is there what's in it for M&M, which will that work towards improving health and education in bear all the management and CSR-related costs of the under-served communities. project? "It is expected that farmers of the locality will purchase tractors for cultivation and that farmers will • The Infosys Foundation has organized training camps adopt micro-irrigation for their fields. As the project for destitute women and built orphanages where involves high levels of construction activity, it is expected education is earmarked as a priority area. The that local entrepreneurs will adopt construction Foundation donated US$ 6.8 million towards relief equipment and work on projects locally. Local and rehabilitation of flood-affected districts of businessmen are expected to purchase commercial Karnataka. The project is a model of sustainable vehicles to cater to the needs of the area," said Anirban community development. They have Constructed Ghosh, VP, strategic planning and new business 2,541 homes for flood victims of Belgaum, Gulbarga, development, farm equipment sector, M&M (Forbes Dharwad, Gadag, Bagalkot, Bijapur, and Karwar. They India, 2012). And it is supposed to enhance the sales of have also initiated the construction of 10,000 toilets M&M tractors and other equipment’s while pursuing CSR in the backward districts of Karnataka, work is still going on. A large number of public and private corporate are looking India Corporate takes CSR route to expand business at CSR as a do-good practice that will eventually help improve sales. In its eighth year now, P&G 'Shiksha' is In India skilled manpower are short in supply and existing structured to directly link its core cause (providing agencies have little patience to impart on-the-job training access to education to underprivileged children) with the

Special issue November 2015 Page 169 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 business. With a simple purchase, Shiksha empowers Companies needs be mindful of its social and moral consumers to lead the social change. "Shiksha is responsibilities to consumers, employees, shareholders, resourced with a dedicated team and measured just as society and the local community. any other Proctal and Gamble (P&G) brand. The initiative Challenges of CSR helps drive trial for all our brands. Our latest consumer study tells us that 51% of the consumers who are aware There are number of challenges to the implementation of Shiksha are influenced to purchase the P&G product of CSR. They are enumerated below: that would help them contribute to the cause," said a • Lack of Awareness of CSR Activities: There is very P&G spokesperson. Similarly, Marico's CSR initiative less interest among general public in participating or linked to Nihar Shanti Amla has proposed that every contributing to CSR activities of firms. This is because time a woman buys a Nihar bottle, 2% of of the fact that there exists little or no information about CSR of companies. The situation is further The proceeds will be contributed to the cause of aggravated by a lack of communication between the children's education. The initiative will be fund 19 projects organizations involved in CSR and the people at the across Uttar Pradesh, Madhya Pradesh, Rajasthan and grassroots. other regions, where each project will touch 25-30 villages within these geographies. "The initiative is expected to • Local Capacities: There is serious need of capacity draw a lot of empathy among our target group, especially building of the non-governmental organizations of the Hindi heartland where average literacy level is slightly particular locality as there is serious scarce of trained lower. The positive rub-off will not be restricted to the and effective institutions that can efficiently contribute brand alone. It will also help in our rural expansion to the CSR activities initiated by different firms. program," said S. Gupta, CEO and Marico. • Transparency Issues: Lack of transparency is one of the key issues for the corporate as there is lack of For those firms which have started on the working on transparency on the part of the small firms as they CSR with business objectives a decade ago, the results do not make adequate efforts to disclose information are visible. HUL's Project Shakti, which started as a on their programs, audit issues, impact assessment rural distribution initiative in a few villages of Andhra and utilization of funds. And it adversely impacts the Pradesh in 2000, today has 45,000 'Shakti Ammas' process of capacity and trust building among the firms across more than 15 states. It catalyses rural affluence which is very important for the success of any CSR even as it benefits business. Shakti, it is understood, initiative. contributes 15% to HUL's rural sales today is more than Rs 1,500 crore. • Lack of organizational set up among NGOs: There are very few organized non-governmental CSR as Business Strategy organizations in interior and rural areas that can It is already accepted idea that of CSR makes business assess and work toward the needs of the community sense. This was realized and confirmed way back from and work with firms to ensure successful attainment statement made by JN Tata way back in 1895, when he of CSR objective. stated, "We do not claim to be more unselfish, more • Visibility Factor: The role of media in generating good generous or more philanthropic than others, but we think cases of effective CSR activities will spreads good we started on sound and straightforward business stories and sensitizes the population about various principles considering the interests of the shareholders, on-going CSR initiatives of firms. This visibility and our own and the health and welfare of our employees... branding exercise often leads many non-governmental the sure foundation of prosperity." organizations to involve themselves in event-based As firm who take CSR as business strategy has to place programs; in the process, they often miss out on equal importance on financial returns as on fulfilling its meaningful grassroots interventions and objective. social and environmental obligations, popularly known • Narrow Perception: NGOs and Government agencies as the triple bottom line? Corporate are aimed at usually possess a narrow perception towards the harmonizing the environmental factors by reducing the CSR initiatives of corporate, often defining CSR adverse effect of its commercial activities and initiating initiatives more as donor-driven. As a result, short or steps encouraging eco-friendly practices. In order to build long run. social capital in the community, a corporate group also • Lack of clear CSR Guidelines: There are no statutory got its managerial officials involved in social programs, guidelines or policy directives to give a direction to and has encouraged employees to share their skills with CSR initiatives of firms. The CSR initiatives of others and work with community-based organizations. companies mainly depend upon their business size

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and profile. It means that bigger the company, the Findings and Discussion larger its CSR activities. The CSR Policies and initiatives • Lack of Consensus: There is a lack of consensus The study shows that all surveyed companies present amongst implementing agencies and stakeholders themselves socially responsible companies, having CSR regarding CSR activities. And it results in duplication policies and conducting practices. A large number of of activities by corporate houses in areas of their firms talks about CSR philosophy, ecological and ethical activities and creates situation of ineffectiveness. objectives in their mission statements, organizational This results in a competitive situation among policy and plans. Even though all the surveyed firms implementing agencies rather than building have CSR policies and objectives but no connection was collaborative approaches. It limits company’s abilities observed between firm’s agenda and the developmental to undertake assessment of their activities in regular Goals. There are many companies taking CSR activities interval. for development of rural India. Most of them working on There is a need of such Corporate Social Responsibility education and it take the top priority list of the companies, campaigns from prominent and respectable firms which followed by health and livelihood. It has been found that has ability to change fate and face of rural India in the there are few companies take CSR initiatives in the area significant areas of education, health, sports, cultural, of infrastructure and in environment which includes political, employment and neglected as well as plantation, awareness generation on environmental untouched areas of empowerment which will boost them issues etc. to live independent and dignified life which they deserve Approaches towards the Work and Modes of Action as they are vital and inseparable part of society. As CSR approach adopted by the companies is CSR as a Future Business Strategy concerned because it is not doing what it supposed to, While today people talk about corporate doing social instead of that most of the companies have taken CSR work, the Tata Group feels it is the need of the hour. But as their overall business strategy. Therefore, they have in western countries companies are not sure about been successful in achieving the objectives of both spending the shareholders money and corporate are business and social development. Their approach to work considering discontinuing CSR. According to Irani, is not mainly relief, welfare and service delivery but it is "Which is fine for them, but not for a country like India. sustainable development oriented, which have long term The governments of the western world have a strong benefits gain. Tata Steel Vedanta, Aluminum Ltd., Dr. social security net so corporate can concentrate on Reddy’s Labs, Ambuja Cement Ltd., Lupin corporate find making profits and paying taxes regularly but in this it difficult to make up there mind whether they should regard India still lags behind. As country we are far away participate in CSR activities for India, Bharat , from being at the phase of socio-economic development SAIL believes in promoting human and social where government is solely responsible for the basic development through poverty alleviation by building needs of the public. We don't have a social security, capacity in rural India. Instead of providing for ignorable adequate health and education services. So till that assistance that does not lead to effective alleviation of happen corporate houses need to come forward and poverty or adequate development is designed as holistic should fill the gaps." action that includes an agricultural scheme, land cultivation and plantation programs, fodder preservation Further he says that for an organization to be successful schemes, water recycling programs, establishment of it require public support which is very important. In any medical and educational centers, adult literacy programs society there is one section that makes profits and richer and credit schemes. Aditya Birla Group, Asian Paints than the rest which leads to disparity and poverty. Over activities are working towards trusteeship concept of a period of time one can see that companies die out if management. CSR interventions by IT companies such they do not support the general public. as Infosys, HCL and WIPRO are philanthropic in nature, In July 2004, B. Muthuraman, Managing Director, Tata working through financial assistance, assets and Steel Limited (TISCO) announced that in future TISCO facilities. The study shows that most of companies would not deal with companies, which do not confirm to implement CSR programs with respect to rural the company's Corporate Social Responsibility (CSR) development through four types of institutions which are standards. Speaking at the annual general meeting of given as below: the Madras Chamber of Commerce and Industry, • CSR activities implemented directly by the company Muthuraman stated, "We will not either buy from or sell through its own (i) CSR division,(ii) Human Resource to companies that do not measure up to Tata Steel's Department (iii) Local management of manufacturing social responsibility standards." unit;

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• CSR activities implemented through a foundation; Environment • CSR activities implemented through partnership with For sustainable development and management of natural NGOs ,academic institutions, international agencies; resources which are scarce in nature require efficient • CSR activities implemented through partnership with and effective steps achieve it. Many Indian corporate Government. have been working for tree plantation, waste management, watershed management, wind firm etc. The Impact of CSR Programs on Rural People For example, PSU such as SAIL has planted 13.5 million The impact of CSR programs reflected by a sample of trees in and around SAIL plants / mines so far. some of prominent companies in India was classified Watershed development program of Ambuja Cement Ltd. under five areas: livelihood, health, education, covered 9,000 ha in the last four years. Sustainable water environment and infrastructure. management remains the top priority of Coca Cola Livelihood India Inc. So far, the company’s water initiatives have The Dr. Reddy’s Foundation is implementing Grameen- improved the lives of more than 1, 40,000 people and LABS Programme in partnership with the Rural spread awareness about the crucial importance of water Development Department; Government of India (GoI). It conservation among millions people. aims to provide 35,000 livelihoods to rural people in the Infrastructure age of 18-25 years in 7 backward States of India. Among the companies surveyed only few companies Livelihood programs supported by Bharat Petroleum are providing infrastructural facilities such as construction show that the SHG group members are earning a steady or development of roads, electricity, school, health income of Rs. 2000 per month. centre, water facility, sanitation, community centre, etc. Health Lupin Human Welfare and Research Foundation’s The study also shows that many firms conduct number scheme covered 38,000 villages in Rajasthan and almost of health camps to create health awareness especially all villages have school buildings, ponds, link roads, health issues like: immunization, blood donation, water drinking water, community centers, and electricity. SAIL purification tablets etc. Up to 2008, SAIL has conducted has been involved in the construction and repair of 33 267 health camps which have benefited more than 4.5 km of pucca roads per year, thereby providing nearby lakhs people in rural area. Vedanta Aluminum Ltd covered two lakh people across 435 villages access to modern 53 villages with 32,000 villagers by providing free infrastructure facilities every year. medicines, treatment, referral services etc. through its Conclusion mobile health units in Lanjigarh (Orissa). Tata Steel Even though corporate are making serious efforts for the Family Initiatives Foundation rural development, but some critics still are questioning (TSFIF) established ‘Lifeline Express’ hospital on wheels the concept of CSR and motive behind the companies which has helped over 50,000 patients in backward initiative. There are people who claim that CSR underlies states such as Orissa, Jharkhand and Chhattisgarh. some ulterior motives such as profit making instead of Education welfare while others consider it otherwise. The reality is that CSR is not a strategy for brand building; however, it Aditya Birla Group provided formal education to 62,000 creates goodwill and brand among its employees and children living in nearby area to the plants by running 26 rural consumer. Indulging into activities that help society formal schools. PSU such as SAIL assist around 138 in one way or the other only adds to the goodwill of a schools in the peripheral areas of SAIL’s plants/ units in company. Corporate Social Responsibility is the the country where more than 80,000 children got obligation of everyone i.e. business corporations, education (Kumar, 2008). HCL works with NGO's governments, individuals because of the reasons: money Udayan, cry for social up-liftment of underprivileged is earned only from the society and therefore it should children. Similarly, WIPRO’s Azim Premji Foundation be given back; thus wealth is meant for use by self and also involved in providing education to poor and needy the public; the basic motive behind all kind of trade is to children. HCL set up of the “Shiv Nadar Foundation”, an quench the hunger of the mankind; the objective of all educational foundation catering to poor student for business is and must be to help people especially whom primary, secondary and higher education has helped rural are living in rural areas. CSR should not be taken as children gain access to formal schooling and higher burden - it must be there as core of every business ethics, education. and its treatment of employees and customers. Thus, CSR is becoming a fast-developing and increasingly

Special issue November 2015 Page 172 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 competitive field to tap rural India as market and treating • Pednekar. Mahesh C., ‘Corporate Social CSR as business strategy. The case for demonstrating Responsibility & Business Strategy - A Case Study corporate responsibility is getting stronger as on the Tata Group under Mr Ratan Tata’. expectations among stakeholders such as formers, • Arora, B. and Puranik. (2004), “A Review of Corporate customers and the public are growing. Being a good Social Responsibility in India”, corporate citizen is increasingly critical for commercial • Development, 47 (3), pp.93-100. success and the key lies in matching public expectations and priorities, and involvement and • Belal,A.T. (2001), “A Study of Corporate Social achievements widely and effectively in areas of rural Disclosures in Bangladesh”, Management development which is need of hour. • Auditing Journal, 16 (5), pp.274-288. References • Conway, C.(2003), “Tracking Health and Well- being in Goa’s Mining Belt”, Case Study 5, • Ghosh J. (2003), Strategy for Development, Frontline • Chappel, M. and Moon, J.(2005), “Corporate Social Vol. 20, No, 18, India. Responsibility(CSR) in Asia: A Seven country study • Goyal S.K. (1996), Political ’s of CSR”, Business and Society,44(4), pp415-441. Economic Reforms, Working Paper of the Institute • Dutta, K. and Durgamohan, M. (2009), “Corporate for Studies in Industrial Development (ISID), New Social Strategy: Relevance and pertinence in the Delhi, India. Indian Context” retrieved on 6th April, 2012 from • Srinivasan T.N. and S.D. Tendulkar (2003). www.iitk.ac.in/infocell/announce/conversion/papers. Reintegrating India with the World Economy. • Sherlekar S.A. (1999), Ethics and Management, Mumbai: Himalaya Publishing House.

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INFLUENCE OF HOLISTIC MARKETING ORIENTATION ON CUSTOMER VALUE IN NEW GENERATION BANKS IN KERALA.

Mr. Jomon Jose M1

Abstract In today’s economic uncertainty and turbulence, creating and maintaining loyal relationships with banking customers are vital for business success. There have been paradigm shifts in the banking sector from transaction orientation to a holistic marketing orientation. Holistic marketing represents a marketing strategy which is developed by thinking about the business as a whole. Espousing a holistic marketing orientation means integrating the value exploitation, value creation, and value delivery activities with the purpose of building long-term, mutually satisfactory relationships with customers. The purpose of this article is to determine the influence of holistic marketing orientation on customer value. The data were collected from the customers of selected new generation banks in Kerala through questionnaires. Pilot survey and Cronbach’s Alpha were used to confirm the validity and reliability of the study respectively and their variables of measures. Statistical tools such as multiple regression analysis, correlation analysis were used for data analysis. Findings indicate that holistic marketing orientations have significant and positive associations with customer value. Researcher concludes that holistic marketing strategies could guarantee to capture customer value and in order to earn and retain bank’s business. Researcher recommends that all firms should adopt holistic marketing orientation concepts, in order to capture customer value and sustain firms’ profitability locally and globally. Key Words: - banking sector, customer value, holistic marketing, and loyal relationships.

Introduction portfolio offering. Further, due to exposure to global trends Globalized markets and borderless flow of information after information explosion led by internet, customers have resulted in intense competitive pressures and demand better services from their banks. There is shift increased customer expectations. from mass banking products to class banking with an introduction of value added and customized products. Productivity, quality, customer satisfaction are the buzz- Banks, privately owned or in the public sector have all words in today's business scenario that demand jumped into retail band wagon. New generation private considerable efforts on the part of the company. Further, banks in India have fast emerged as one of the major to attain the basic business goals of survival and growth, drivers of the banking industry and have witnessed businesses are looking for ways to attract and retain enormous growth in the recent past. customers in the long run. Banks play a vital role in spearheading the economic development of the nation Recent advances in information technology have provided and are the main stimulus of the economic progress. the tools for banking managers to create a new generation The highly regulated and directed banking system has of customer value tactics. Holistic marketing represents transformed itself into one characterized by openness, a marketing strategy which is developed by thinking competition and prudence. This development conforms about the banking business as a whole. When using a to the liberalization and globalization needs of the Indian holistic marketing strategy, every aspect of the banking economy. As gradual up gradation of skills and business must be carefully considered. The bank must technology and restructuring and re-engineering think how the consumer will interact with its product, its processes are attempted by both foreign and private website, its advertising materials, and everything else. sector banks, public sector banks in India face new A holistic marketing orientation can also provide insight challenges. The need to become highly customer into the process of capturing customer value. One focused has forced the slow-moving public sector banks conception of holistic marketing views it as integrating to adopt a fast track approach. The unleashing of the value exploration, value creation, and value delivery products and services through the net has galvanized activities with the purposes of building long-term, mutually players at all levels of the banking and financial satisfying relationships and co-property among key institutions market grid to look new at their existing stakeholders. The researcher has taken the topic

1 .Head of Department-Management, Teams Global Village Academy, Mannuthy, Thrissur, Kerala.

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“Influence of holistic marketing orientation on customer customers’ communicating systems and sensitizing the value in new generation banks in Kerala”, to know how employees on the importance of such system in holistic marketing concept helps the banks to realize maintaining good relationship with customers is the improvements in customer satisfaction and retention, essential for communicating and delivering customers’ reduce cost of sales and services, increase sales and value effectively (Singh & Srivastava 2008, p. 4). They revenue and acquire new customers. note that the primary concern of any business organization is to create a long term relationship with Review of Literature its clients, to ensure that it complies with the market The influence of holistic marketing on customer value in demand by delivering and communicating consumer the context of new generation banking sector is a widely value, which actually is the main objective of relationship discussed topic in the literature. This section targets marketing. popular journals, magazines and various text books that The integrated marketing, a holistic marketing contain fruitful information on holistic marketing and its component, is essential in delivering and communicating dimensions as well as customer value. value. According to Rehman & Ibrahim (2011, p.188), Holistic Marketing integrated marketing communication (IMC) entails According to Govindarajan (2007), the concept of holistic various strategic programs that enable organisation to marketing entails the wider view of marketing strategies create, communicate and deliver value to their clients. that involve the development of marketing programs, They note that the integrated marketing communication processes and activities that help in the marketing of addresses four key elements of market activities, products. He points out that the concept of holistic generally known as market mix, which include product, marketing plays an important role, especially in selecting price, place, and promotion. For instance, an marketing formats that help in identification of organisation can use integrated marketing comfortable marketing strategies. He states that the communication to initiate a product promotion program concept of holistic marketing is based on four major and practice that enhances good relationship with its components that enable effective designing and customers thus promoting service delivery and value. implementing of marketing programs and processes. According to Himansu (2009, p.1), the internal marketing These holistic marketing components include effective is also another component of holistic marketing that can relationship marketing, the integrated and internal deliver and communicate consumer value. He notes that marketing, and, furthermore, the performance marketing internal marketing depicts practices that ensure full as they are essential for effective marketing strategies. participation of each employee in an organisation to How Holistic Marketing Can Deliver and exploit the market orientation thereby integrate service Communicate Value delivery. He points out that through internal marketing, According to Penelitianku (2008, p.1), holistic marketing organisations are able to research on market complexity is an essential tool of delivering and capturing consumer that involves products’ marketing channels. In the value. He notes that holistic marketing components help process, it identifies and devises appropriate marketing in exploring, creating and delivering consumer value. strategies that can effectively deliver and communicate Singh & Srivastava (2008, p. 3) also point out that consumer value. Training or hiring employees with relationship marketing, a significant holistic marketing adverse marketing knowledge also enables organisation component, plays an important role in delivering and to sensitise its internal marketing strategies that, in turn, communicating customer value. They note that the deliver and communicate effective consumer value management of relationship marketing enhances effective (Himansu 2009, p.1). relationship networks at each stage of the supply chain; On the other hand, social marketing, which is another therefore, building long-term relationship between component of holistic marketing, entails organisation’s companies and customers. The creation of long term social responsibility that can deliver and communicate relationship enables organizations to capture and utilize value. According to Hoeffer & Keller (2006, p.79), social customer’s demands thus delivering and communicating marketing enables an organisation to understand the consumer value. ethical, environmental and social concept of market trend. Singh & Srivastava (2008, p. 3) also point out that They point out that these concepts enable organisations relationship marketing enables the creation service to venture into programs and practices that address both delivery system, especially at each stage of the supply the interest of the consumer and the entire society; chain. They note that these service delivery systems therefore, enhancing effective delivery and enables active participation of customers that result in communication of consumer value. For instance, creating their confident and loyalty towards the organisation through its marketers can promote social organizations. For instance, developing effective activities such as business sponsorship that shows its

Special issue November 2015 Page 175 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 social responsibility in promoting business ideas. In the H4: Holistic marketing have high influence on customer process, each member of the society establishes and value in the banking context. acknowledges the organisations’ brands thus enhancing Research Methodology delivery and communication of consumer value. Research process adopted for this study included a set Importance of the Study of advanced decisions that made the master plan Everything matters under the holistic marketing umbrella. specifying the methods and procedures for collecting In a developing economy, product and service offerings and analyzing the needed information. The Research have multiplied exponentially along with competition. process for this study included stages such as Information is available instantly. The new marketing exploratory, descriptive and causal researches. The paradigm has shifted the emphasis from product and present study used primary data collected through a production, to selling, then integrated marketing within pretested questionnaire method. The questionnaire was the holistic marketing concept. The study helps to pretested by conducting pilot study and suitable describes and analyses the ways in which holistic modification has been made in the questionnaire relating marketing can assist banks to connect with customers. to the study. Data pertaining to the study collected It also explains how holistic marketing can help in between July 2015 to September 2015. The building brands. Moreover, the study explains how holistic questionnaire in this study was designed as closed – marketing can deliver and communicate value. end questions where the respondents have to make their response in a 5 point Linker scale varying from “Strongly Statement of the Problem disagree” to “Strongly agree”. To understand the The purpose of the study is to provide a deeper demographic profile of the respondents, questions understanding of how holistic marketing concept helps related to Age, Sex, Qualification and Income etc were the banks to create and maintain customer value. From included. In this study all the customers who utilize the the problem discussion researcher has formulated the retail banking service offered by the various types of new following research questions. generation banks in Thrissur, Kerala was considered as 1. How holistic marketing philosophy helps the banks population for the study. The samples are selected on a to identify and create more promising new value random basis after visiting different branches of various offerings? banks in the city without any prejudice on considering 2. Which holistic marketing dimensions are essential or rejecting a particular respondent. The researcher has in forming value among Kerala customers in chosen 150 respondents of new generation banking association with new generation banking sector? sector as sample. Statistical tools such as multiple regression analysis, correlation analysis were used for Objectives of the Study data analysis. The overall objective is to evaluate the influence of holistic Reliability Test marketing on customer value in the new generation banking sector in Kerala. From Table 1 shown that Cronbach’s Alpha 0.774 hence we can say the reliability of the questionnaire is at 1. To analyze the influence of relationship marketing, moderately good level. internal marketing, integrated marketing and performance marketing on customer value in the new Table – 1: Reliability Statistics generation banking sector in Kerala. Cronbach’s Cronbach's Alpha Based N of Items 2. To identify the interrelationships between holistic Alpha on Standardized Items marketing and customer value in the retail banking .774 .774 25 sector and to identify the benefits of this relationships. Hypothesis of the Study Analysis and Results H1:There exists a significant positive relationship Correlation analysis between holistic marketing and customer value Correlation analysis is used when independent variables exploration in the banking context. are correlated with one another and with the dependent H2:There exists a significant positive relationship variable. Since both variables are interval, Pearson between holistic marketing and value creation in the Correlation test was conducted. From the analyze, it banking context. can be observed that the correlation coefficient between H3:There exists a significant positive relationship holistic marketing and customer value exploration is between holistic marketing and value delivery 0.673, at a significant level of 0.01 (Pannerselvam, activities in the banking context. 2014).Hence we accept the Hypothesis 1.In other words holistic marketing and customer value exploration are

Special issue November 2015 Page 176 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 related with a moderate positive relationship (r = 0 .673). Table - 2 (b) : Coefficientsa From the analyze, it can be observed that holistic Unstandardized Standardized marketing and value creation are related with a high Coefficients Coefficients positive relationship (r = 0 .740) and holistic marketing and value delivery activities are related with a moderate Model B Std. Error Beta positive relationship (r = 0 .654). Hence we accept the (Constant) .824 .196 Hypothesis 2 and 3. Relationship .199 .099 .208 Multiple Regression Analysis Marketing Internal .301 .141 .318 b Table - 2 (a) : Model Summary Marketing Model Model Durbin-Watson Integrated .451 .121 .482 Marketing 1 1 1.539 Performance .426 .105 .442 a. Predictors: (Constant), Performance Marketing, Marketing Relationship Marketing, b. Dependent Variable: Customer Value. Integrated Marketing, Internal Marketing,

In the column (table 2.a) labelled R2, which is a measure Findings & Discussion of how much of the variability in the outcome is accounted This particular study was oriented on the influence of for the predictors. For the R2 model its value is .208 holistic marketing on customer value. The research which means that customer value for 20.8% of the proves that holistic marketing is an important strategy variation in predictors. The Durbin-Watson Statistic for new generation banks success, in today’s informs us about whether the assumption of independent increasingly competitive environment. Banks need a well- errors is tenable. The value (1.539) is below 2 indicates defined strategy for value exploration. To exploit a value a positive correlation. opportunity, the bank needs value-creation skills. Banks The multiple regressions the model takes the form of a need to identify new customer benefits from the equation that contains a coefficients (b) for each customers view, utilize core competencies from its predictor. The table2 (b) gives us estimates of these b business domain and select and manage business values and these values indicate the individual partners from its collaborative networks. Banks must contribution of each predictor to the model. The b values understand what the customer thinks about and wants tell us about the relationship between customer loyalty to craft new customer benefits. Banks must also observe and each predictor. If the value is positive we can tell who the customer admires, who they interact with and that there is a positive relationship between the predictors who influences them. Consumer value is seen as the and the outcome whereas a negative coefficient key factor in winning market share and developing a represents a negative relationship. For these data all sustainable competitive advantage. Banking industry is predictors have positive b values indicating positive no exception as it has high interaction with the relationships. The b values also tell us to what degree customers, so managers must understand the factors each predictor affects the outcome if the effects of all which influence the loyalty of the customers towards other predictors are held constant. Each of these beta their respective banks. The present research finding values has an associated standard error indicating to supports the fact that relationship marketing is a what extent these values would vary across different significant factor which influences the customer value of samples, an these standard errors are us to determine banks. Banks must shape separate offers, services, and whether errors are used to determine whether or not the messages to individual customers, based on information b values differs significantly from zero. The major about past transactions, demographics, psychographics, hypothesis stated in this paper was “the holistic and media and distribution preferences. marketing may have high influence on customer loyalty.” Recommendations & Scope For Future Research Regression analysis was used for examining whether each holistic marketing dimensions is affected by The two phases of research for this article were carried customer loyalty. Thus the finding is in line with the out among customers of banks in Thrissr district, Kerala, hypothesis stated in the paper that the holistic marketing the researcher believe that the same methodology can may have high influence on customer loyalty. Thus the be extended and a comprehensive analysis suited to all major hypothesis stated is well accepted. (Table : 2b) customers in India can be initiated and such an effort will be relatively easy considering the similarities in

Special issue November 2015 Page 177 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 products and services offered by various banks within Journals And Other Articles the country. Researcher recommends that all firms • Lassignardie,J., & Desmarès, P. (2013). Achieving should adopt holistic marketing orientation concepts, in Differentiation in a Commoditized Market. World order to capture customer value and sustain firms’ Retail Banking Report 2013. http:// profitability locally and globally. www.capgemini.com/wrbr13 http://www.efma.com/ Conclusions wrbr In conclusion, the write up has highlighted holistic • Lassignardie,J., & Desmarès, P. (2013).Evolving marketing as being an essential marketing strategy that Usage of Mobility In Banking. World Retail Banking effectively design and implement programs and practices Report 2013. http://www.capgemini.com/wrbr13 in coping with market complexity. It has highlighted the http://www.efma.com/wrbr need to utilize the four marketing components of the • Rao,R.S.(2014). The Role of Retail Banking. In holistic marketing to fully address the customers’ value Indian Economy International Journal of Engineering in new generation banking industry. This paper explores Research and General Science Volume 2, Issue 2, the content and objectives of holistic marketing, explains Feb-Mar 2014 its influence on banking sector and describes the overall • Rehman,S.U.,&Ibrahim,M.S.(2011,November 22). implementation process and its supporting pillars. Good Relationship with its Customers Thus Researcher highlighted how holistic marketing Promoting Service Delivery and Value. Journal of framework, shows the interaction between relevant Arts, Science & Commerce, International Refereed actors (customers, company, and collaborators) and Research Journal, Vol. II (Issue 4, Oct. 2011). value-based activities (value exploration, value creation, • Sethuraman, J. (2014). Retail Banking - Models, and value delivery) helps to create, maintain, and renew Strategies, Performances and Future - The Indian customer value. In order to be efficiently implemented, Scenario. Indian Institute of Banking and Finance, holistic marketing has to be approached as a Mumbai management process that is strongly influenced by the organizational culture and leadership climate. Websites • Baker, M. J. (2004).Retailing http://ijbssnet.com/ References journals/Vol_3_No_21_November_2012/23.pdf Books • Belding, S., (2008, February 11). Customer Service: • Govindarajan, M. (2007). Marketing Management: Cure for recession headaches? http:// Concepts, Cases, Challenges and Trends. (2nd ed.) www.beldingskills.com/Blog/?p=85 .New Delhi, India: Prentice Hall of India. • Cronbach, L.J. (1951). Coefficient alpha and the • Jain, P.C., & Bhatt, M.(2008) Consumer Behavior : internal structure of tests. https://en.wikipedia.org/ In Indian Context. . (2nd Rev. ed.). New Delhi, India wiki/Cronbach%27s_alpha :S.Chand • Gandhi, R. (2012, July 5) Harnessing the Power of • Kothari,C. R.(2003).Research Methodology .(2nd Integrated Marketing. Integrated Marketing: ed.) .Delhi, India :New Age International. Understanding the Basics, http:// • Kotler , P., & Keller, K. L. (2012) Marketing www.pbsmartessentials.com/get-customers/ Management(14th ed.), New Jersey, N.J.:Pearson integrated-marketing-understanding-the-basics/ Education , Prentice Hall. • Himansu,S. M.( 2009 ,Aug 15). Holistic Marketing. • Kotler, P., Armstrong, G., Agnihotri, P. Y., & Haque, Modern & Evolved Concepts of Marketing, http:// E. U.(2010) Marketing Management: A South Asian www.scribd.com/doc/18640500/Holistic- Perspective (13th ed.), Delhi, India: Dorling Marketing#scribd Kindersley. • Jones,T.O.& Sasser,W.E.,(1995). What Drives • Kotler, P., Keller, K. L., Koshy, A. & Jha, M.(2009) Loyalty?: Moving beyond customer satisfaction. Marketing Management: A South Asian Perspective http://www.rkm-research.com/downloads/Loyalty.pdf (13th ed.), Delhi, India: Dorling Kindersley. • Lassignardie,J., (2013). The Customer-Bank • Pannerselvam, R.(2014). Research Methodology. (2nd relationship has become more complex but less ed.) .Delhi, India: Prentice Hall of India. personal. www.capgemini.com/wrbr13 • Saxena, R. (2006) Marketing Management. (3rd. • Ndubisi, N.O.(2007). Relationship marketing and ed.).New Delhi, India:Tata McGraw-Hill Publishing. customer loyalty. Marketing Intelligence & Planning, • Sontakki, C.N. (2009). Marketing Management. (2nd Vol. 25 (Issue: 1),98 – 106. http://dx.doi.org/10.1108/ Rev. ed.). New Delhi, India: Kalyani Publishers. 02634500710722425

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• Noked, N. (2011, February 28). Investing in Corporate Social Responsibility to Enhance Customer Value. The Harvard Law School Forum on Corporate Governance and Financial Regulation. http://blogs.law.harvard.edu/ corpgov/2011/02/28/investing- in-corporate-social-responsibility-to-enhance-customer-value/. • Oliver,R.L.(1999) . Whence Consumer Loyalty?. Journal of Marketing, 63(4), 33–44. http://www.uta.edu/faculty/ richarme/MARK%205342/.../Oliver%201999.pdf • Penelitianku (2008,) Buy The Concept of Holistic Marketing Essay Paper Online http:// www.essaysprofessors.com/samples/Informative/the-concept-of-holistic-marketing.html • Purcãrea,T.V.,& Raþiu,M.P. (2009) How to keep Loyal Relationships with Service Customers using Holistic Marketing. http://www.holisticmarketingmanagement.ro/RePEc/hmm/v1i1/1/7.pdf • Raþiu, M. N. C., (2008). Quality and Value: the keys to achieve customer retention and loyalty. ftp://ftp.repec.org/ opt/ReDIF/RePEc/rau/.../HOMKMG-SP11-A6.pdf • Singh.T & Srivastava .V (2008). Relationship Marketing across Value Delivery Network. 8th Global Conference on Business & Economics 2008,.http://www.gcbe.us/8th_GCBE/data/confcd.htm

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E-PUBLISHING -A STRATEGIC OVERVIEW

P.M.Manoharan Pillai1

Abstract E-publishing is a computer aided or assisted process of publishing in which the documents are submitted in electronic form, edited, printed and even distributed to readers by employing computer and telecommunication networks; and the product of e-publishing may consist of abstracts, full texts, graphics, pictures and interactive features as well. Some scientists describe it as application of information technology to traditional print publishing and according to them the term electronic publishing refers more precisely to the storage and retrieval of digitized information through electronic communication media. So e-publishing can be represented as the combination of information technology and traditional publishing techniques i.e., e-publishing = information technology (=Computer technology Communication technology) + publishing techniques. Key words:- E-document, Traditional Publishing, Communication Technology, Print-on-demand, electronic ink.

Introduction includes a variety of different publishing models, including The advent of Computers ushered in a new era in many electronic books (e-books), Print-on-demand (POD) , e- discipline. Information technology has significant impact mail publishing, wireless publishing, electronic ink, and on the publishing industry too, paving the way for internet web publishing. and digital library throughout the world. The printing Evolution of E-publishing:- In 1455 Johnnes Gutenberg and publishing industry has came in to existence after invented his famous printing press with movable type. the invention of printing press which movable type by And the first book “Gutenberg 42 line Bible” was produced Johannes Gutenberg in 1455. The technology enables by Gutenberg’s printing press. In 1490, Aldus Manutius the manufacture of high quality printed works at a fraction founded the Aldine press in Venice. the cost of hand copying. With the passage of time The second land mark in this area as found is the literary, scientific, historic, and informative works. production of wood pulp paper commercially for the first Observations and experiences of people are started to time in 1840. In the last century, as it is noticed, the be recorded in the paper media rapidly. The society which work of H.G.Wells had got importance. He wrote “World could thousands of years without papers became paper- Brain” in 1938 it is a vision of a vast print encyclopedia based rather paper-dependent society within a few years. of all human knowledge. Another important invention in With the emergence of many such analogues tools and the twentieth century probably was what we call hyper techniques, the publishing and printing industry could text. The term ‘Hypertext’ was coined by Ted Nelson in be started to produce books, journals, newspapers, 1965. In 1968, Alen Kay created a card board model of pamphlets, reports, other publications in a large scale a Dyna book-a computer with a million –pixel screen. to cope with the age of information explosion. More than This was basically a visionary device which Kay claimed 500 years of history of printing and its associated as something more like super-paper. In 1979, Dong activities, publishing scenario is expanded and Adams released the popular science fiction novel, “The reasonably changed in comparison with what it was in Hitchhiker’s Guide to the Galaxy”, in which Protagonist the Gutenberg’s age. In fact, scientists again started to Ford perfect researchers the galaxy for a vast electronic debate for the paperless or less paper society. book called “The Hitchhiker’s Guide. The Random House Electronic Treasures is arguably the world’s first Stages of development:- Since 1985 significant commercially available “Electronic Book” (E-Book) which developments have taken place on electronic publishing. is published in 1981. In 1986, Franklin Electronic The concept of document on paper is being changed in publishers embedded an electronic dictionary in a hand to electronic document, i.e, e-document. An e-document held device, producing the first probable e-book. ’s can be defined as the document existing in an electronic Data Discman was designed to display CDROM books form to be accessed by computer. The ramifications of on a 3.5 inch screen in 1991. With the blessings of e-publishing, e-publishing is a very broad term that Internet, e-publishing has got new dimension.

1 .Librarian, TKM Institute of Management, Kollam, Kerala.

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Catagories of E-Publishing:- During the last few years opportunity to preserve their competitiveness within the the e-publishing industry has spread over with increasing e-publishing and e-commerce markets ( Connaway, complexities. E-publishing models include commercial 2007)."The e-book market place has developed e-publishing, Subsidy e-publishing distributors and self- considerably in recent years with the emergence of e- e-publishing. book aggregators and the demand from the education Commercial e-publishing – It is much like commercial community for e-textbooks and core reading materials" printing & publishing. Manuscripts are accepted on the (JISC, n.d. b). basis of quality and marketability. Most commercial Despite the rapid increase in e-book revenues and the publishers then go through the same process of review, evident successes of the last decade, only a small editing, and proof reading before publication as a print corpus of research on e-books has developed in the UK publisher. Commercial e-publishers typically sell their Armstrong et al. , 2006). Projects have been books through their own website, as well as through commissioned by the JISC e-Books Working Group ( Amazon.com, Barnes and Noble, and other electronic JISC, 2008a) on book stores. Some offer both electronic downloads and Collection needs the availability of free e-books, disks or CD ROMs and some also offer print-on-demand metadata, and the promotion of e-books and the services. Most provide such service as obtained ISBN publishing of electronic textbooks. Numbers, copy write registrations, and sometimes also According to the European Commission final report a LC (Library of Congress) listing. entitled "Publishing market watch", although e-book Variety E-Publishing – It is sometimes called Subsidy publishing is quickly developing and their use is publishing since the pays a Subsidy to get a book increasing, e-books "have not yet been successful in published. Subsidy e-publishers, like their print counter the European market" ( EC, 2005, p. 103). The report parts, produce and distribute books for a certain fee per acknowledges the fact that the book industry "has not manuscript. Authors receive a royalty, which is usually in general responded through technological innovation: comparable to that offered by Commercial e-publishers e-books have not yet developed as a force in European (around forty percent). Like commercially published e- publishing, although print-on-demand is growing, books, Subsidy published e-books are available through especially in academic publishing". However, publishers most online book stores. and aggregators hesitate to produce e-books, especially No–fee distributors - Generally, such a distributor in the UK where the uptake of e-books seems to be changes no fee to the author, but take a percentage of slow ( JISC, 2006). Gold Leaf (2003, p. 9) concluded royalties (Usually around 25 to 30 percent). that: many publishers are reluctant to make their publications available in e-book format and/or to promote Electronic Self publishing – It is a process in which the them too strenuously, because they are afraid of the author is entirely responsible for producing his/her own effect on their revenues. This is especially true of the book, from development to publication to marketing. major textbook publishers, who have instead invested Many authors choose to electronically self-publish their heavily in producing supplementary/complementary manuscript. A self-published author receives all revenues electronic materials to support print books. from book sales, rather than a percentage of revenue in the form of royalties. The global e-book market E-Book Subscription - There's no shortage of new Although the e-book supply has grown markedly during developments in the e-book subscription category. the last two decades, with an average annual rate of Hoopla, a digital content provider for the library market, growth of around 20 per cent, e-books as yet constitute is essentially an e-book subscription service for public only a small portion of the total book market place Just, libraries, offering anyone with a public library card access 2007. While, Nelson (2008), has noted that "e-book to all kinds of content. The service launched an e-book sales lag far behind projections and constitute only a service offering access to thousands of titles (including small percentage of the book market", Hook (2001) has comics and graphic novels) as well as movies, music, reported that "e-books may still be only a small part of TV series, and audio books. DC Comics announced that the total publishing market, but e-book sales are growing, it will add 200 of its graphic novels and periodical comics and many expect big things for the format in the near to Hoopla over the next few months, marking the future". publisher's first deal with a library or a subscription Accurate industry sales figures for e-books are elusive. service. For instance, there is no established tracking of e-book Literature review sales in Europe due to the low level of their sales (2005). In the USA, the International Digital Publishing Forum The birth of the electronic book has provided publishers (IDPF, formerly Open E-book Forum) collects quarterly with new methods of serving customers that offer the

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US trade retail e-book sales in conjunction with the • Dawsonera (www.dawsonera.com/); Association of American Publishers (AAP). According • Ebook Library (EBL) (www.eblib.com/); to their first statistics generated in 2002, the sales for e- • Ebrary (www.ebrary.com/corp/); books were about US$6 million; for 2006, the sales exceeded US$20 million; and for 2007, sales increased • Gale Virtual Reference Library (from Gale/Cengage to US$31.7 million - a 23.6 per cent growth over 2006 Learning) (http://gale.cengage.com/gvrl/); IDPF, 2008). Nevertheless, the 2007 study has its • MyiLibrary (from Ingram Digital Group) limitations - it provides only partial data, submitted from (www.myilibrary.com/company/home.htm); approximately 12 to 15 trade publishers, and represents • Knovel (www.knovel.com/); only US revenues and trade e-book sales via wholesale • NetLibrary (from OCLC) (www.netlibrary.com/); channels. Consequently, the statistics under estimate • the real size of the US trade e-book market. The Statistics Questia (www.questia.com/); and do show a general increase but the volume is still low, • Safari Books Online (www.safaribooksonline.com/). taking into account that the total publishers' net revenues Findings and discussion in 2007 reached US$37.26 billion BISG, 2007). The most significant findings of the study are presented Methodology and discussed in this section. The first part focuses on Desk research was used as the main information the stages of e-publishing development, evolution of e- gathering tool of the study. Key international competitors publishing and categories of e-publishing models include in the e-book market were identified through the literature commercial e-publishing, subsidy e-publishing and investigation of higher education libraries' catalogued distribution and self publishing. The second part gives e-book collections. The preliminary research indicated an overview of services provided by the selected that both publishers and aggregators are important companies and is split into two subsections: e-book players in the e-book industry in the academic library publishers and e-book aggregators. Both subsections sector. cover six areas: e-book vendors' target market(s), e-book Therefore, data were collected on what e-book vendors vendors' customer base, number of e-book titles provided offer to their customers. The data were mainly collected by vendors, subject coverage of vendors' collections, and from the official web sites of 20 major companies - nine methods of purchasing access rights for the libraries. publishers. The selection of this information source was The e-book aggregators section also provides data on based on the view that official web sites consist of the the number of publishers who use the platforms of the companies' authorised statements and present materials selected aggregators. they promote to their customers. Interviews were not Conclusion conducted at this specific phase of the research in order Collection development in relation to e-books generates to avoid the subjectivity of talking to companies' a host of issues including: overlaps between e-books representatives. available from different aggregators and how these can E-book publishers : be managed; pricing models; licensing and forms of • Blackwell Reference Online ownership; downloading, printing and other access (www.blackwellreference.com/public/); restrictions; and cataloguing issues. There is considerable scope for the collection of data covering • Cambridge University Press (www.cambridge.org/); some of these issues, such as overlaps in offerings and • Elsevier (www.elsevier.com/); access arrangements, and, in other cases, sharing of • RSC Publishing (www.rsc.org/publishing/); practice. Finally, monitoring the adoption of e-books and • Taylor & Francis (www.taylorandfrancisgroup.com/); the nature of e-book use by users/readers/consumers is crucial, since this will have consequences for, among • SAGE (www.sagepub.co.uk/); other things, the role of libraries as intermediaries, pricing • Springer (www.springer.com/); strategies and the viability of e-book publishers and • Thieme (www.thieme.com/); and distributors, e-book distribution channels. • Wiley InterScience OnlineBooks References (www.interscience.wiley.com/); • Armstrong, C.J., Edwards, L. and Lonsdale, R. E-book aggregators : (2002), "Virtually there? E-books in UK academic • Books@Ovid (from Ovid Technologies Inc.) libraries", Program: Electronic Library and (www.ovid.com/); Information Systems, Vol. 36 No. 4, pp. 216-27. • Credo Reference (http://corp.credoreference.com/); • Armstrong, C.J., Lonsdale, R. and Nicholas, D. (2006), "SuperBook: planning for the e-book

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revolution", Library and Information Update, Vol. 5 Survey/ebrary_eBook_survey_2007.pdf (accessed No. 11, pp. 28-30. 11 June 2008). • Asia News (2007), "S. Korean e-book market • EC (2004), "Publishing market watch: sectoral report forecast to grow over threefold in 2006", available 2: book publishing", available at: at: http://asia.news.yahoo.com/060207/4/2fehb.html www.rightscom.com/Portals/0/ (accessed 11 June 2008). European%20Book%20Publishing%20 Report.pdf • Bennett, L. and Landoni, M. (2005), "E-books in (accessed 11 June 2008). academic libraries", The Electronic Library, Vol. 23 • EC (2005), "Publishing market watch: final report", No. 1, pp. 9-16. available at: http://ec.europa.eu /information_society/ • BISG (2007), Industry Trends 2007, Book Industry media_taskforce/doc/pmw_20050127.pdf (accessed Study Group, New York, NY. 11 June 2008). • Connaway, L.S. (2007), "The future of e-books", in • Gold Leaf (2003), "Promoting the uptake of e-books Kresh, D. (Ed.), The Whole Digital Library Handbook, in higher and further education", JISC e-Books American Library Association, Chicago, IL. Working Group, London, available at: www.jisc.ac.uk/uploaded_documents / • Connaway, L.S. and Wicht, H. (2007), "What PromotingeBooksReportB.pdf (accessed 11 June happened to the e-book revolution?: The gradual 2008). integration of e-books into academic libraries", Journal of Electronic Publishing, Vol. 10 No. 3, • Google (2008), "Google Book Search", available at: available at: www.journalofelectronicpublishing.org/ http://books.google.co.uk/ (accessed 11 June 2008). (accessed 11 June 2008). • Hillesund, T. (2001), "(2001), Will e-books change • COUNTER (n.d.), "Counting online usage of the world?", First Monday, Vol. 6 No. 10, available networked electronic resources", available at: at: www.firstmonday.org/issues/issue6_10/hillesund/ www.projectcounter.org/about.html (accessed 11 (accessed 11 June 2008). June 2008). • Hook, B.R. (2007), "Are the e-book 'Barbarians at • ebrary (2007), "ebrary's global ebook survey", the Gate'?", Book Business, Vol. 10 No. 1, available available at: www.ebrary.com/ corp/collateral/en/ at: www.bookbusinessmag.com/ (accessed 11 June 2008).

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A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT WITH REFERENCE TO BIKE SHOW ROOMS

S. Noor Mohamed Bisool1

Introduction costs six times more to create a new customer than CRM stands for Customer Relationship Management. It retain an old one. is a process or methodology used to learn more about • Increased sales revenues. customers’ needs and behavior in order to develop • Increased responsiveness. stronger relationships with them. The more useful way • to think about CRM is as a process that will help bring Increased win rates. together lots of pieces of information about customers, • Increased margins. sales, marketing effectiveness, responsiveness and • Reduced cost. market trends. CRM helps businesses use technology and human resources to gain insight into the behavior of Business Benefits of CRM customers and the value of those customers. Implementing a customer relationship management (CRM) solution might involve considerable time and Using CRM, a business can: expense. However, there are many potential benefits. A • Provide better customer service. major benefit can be the development of better relations • Increase customer revenues. with your existing customer, which can lead to: • Discover new customers. • Increased sales through better timing due to • Cross sell/Up sells products more effectively. anticipating needs based on historic trends. • Identifying needs more effectively by understanding • Help sales staff close deals faster. specific customer requirements. • Make call centers more efficient. • Cross-selling of other products by highlighting and • Simplify marketing and sales processes. suggesting alternatives or enhancements. Effective The Evolution of CRM targeted marketing communications aimed It is not suddenly that the business managers have specifically at customer needs realized that the customer is supreme or the need to • Amore personal approach and the development of render personalized service. However, it was not possible new improved products and services in order to win to address the preferences of a massive group of widely more business in the future. dispersed individuals. Neither the tools nor the • Enhanced customer satisfaction and relation, technology was available. The smart business managers ensuring that your good reputation in the marketplace did the next best thing, which was to conduct a market continues to grow research and classify the market into broad segments • Increased value from your existing customers and with different preferences. The product managers would reduced cost associated with supporting and (and still do) then position their products catering broadly servicing them, increasing your overall efficiency and to these segments. The commercial penetration of reducing total cost of sales. Internet into the homes changed everything. It provided the means to take the integrated enterprise information Role of CRM system to the customer’s living room. • To identify those customers that are most Valuable to the organization Why should one adopt CRM? • To segment the organization’s customers in the CEOs are realizing those who are not able to come up most useful way, e.g., by demographics, needs, with effective CRM strategies risk being edged out of value business. Customer is the king and the business • strategies must be built for ensuring customer loyalty. It To retain the customers that are most valuable to the organization

1 .Measi Institute of Management, Chennai, Tamilnadu.

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• Involves thinking about the economic indicators Limitation of the Study relationship intensity • The study was confined to the bike show rooms. Objectives of the Study Thus the results cannot be extended to all logistics present in other parts of the country Primary Objective • Due to the time constraint the sampling size was “A Study on Customer Relationship Management With restricted to around 50 customers. Reference To Bike Show Rooms” • Respondents found it uncomfortable to fill in the Secondary Objectives questionnaire because there was managerial • To study about the existing customer satisfaction restriction in responding to questionnaire, so they level with bike show rooms were not able to communicate effectively • To analyze the various customer relationship • Cost was also a major constraint. parameters with respect to various factors like Industry Profile turnaround time, cost, quality, services etc. The automobile industry consisting of cars, trucks, • To study about customer retention strategies adopted buses, two-wheelers and three-wheelers, is vital to the by bike show rooms growth of the Indian economy. In the last decade their • To find out the Impact of CRM on the profitability of share in the Indian economy is around 5% of GDP. the organization. Economic progress is indicated by the amount of goods • To know importance and the satisfaction of the and services produced which give the impetus for customers relating to various parameters of bike show transportation and boost the sale of vehicles. Increase rooms. in automobile production has a catalyst effect by • To know the internal and the external factors affecting indirectly increasing the demand for a number of raw CRM practices of bike show rooms materials. Scope of the Study Before Independence • The study was conducted for bike show rooms and Before independence India was seen as a market for this could not be used for the further analysis of imported vehicles. The assembling of cars manufactured other company. by and other leading brands was the order of the day. Indian auto industry focused on • The study has value for research that can compare servicing, dealership, financing and maintenance of it with potential in other cities. The study could be vehicles. Manufacturing started only after a decade from treated as a ground breaking study for market independence. analysis. • The project is done to help the company to maintain After Independence their relationship with the customers and also to Till the 1950s the Indian Railways played a pivotal role satisfy them through proper service. in meeting India’s transportation needs. The railways • This project helps the company to improve present used to carry 90 per cent of the total freight, while road CRM system by providing various suggestions. transport accounted for the balance. But in the current context the dynamics have changed. Surface transport • This project provides guidelines to attract new accounts for 65% of freight movement and 80% of customers, retain the existing customers and to passenger movements. The slow growth of railway maintain better CRM infrastructure has been partly due to administrative Need for Customer Relationship Management reasons, partly due to difficulty in acquiring land and • Customer Relationship Management leads to partly due to high capital cost involved for every additional satisfied customers and eventually higher business railway line. The Indian automobile industry faced several every time. And Customer Relationship Management challenges and road blocks to growth since goes a long way in retaining existing customers. independence. Manufacturing capability was restricted • Customer relationship management ensures by the rule of license and could not be increased. The customers return back home with a smile. total production of passenger cars was limited to 40,000 a year for nearly three decades. This production was • Customer relationship management improves the also confined to three main manufacturers Hindustan relationship between the organization and Motors, Premier Automobiles and Standard Motors. customers. Such activities strengthen the bond There was no home grown expertise or research & between the sales representatives and customers. development initiative. It was difficult to import scientific know how and vital spare parts and cumbersome to recruit

Special issue November 2015 Page 185 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 foreign technical experts. Following economic millennium. According to Chen and Popovich(2003), CRM liberalization in India in 1991, the Indian automotive is not a concept that is really new but rather due to industry has demonstrated sustained growth as a result current development and advances in information and of increased competitiveness and relaxed restrictions. enterprise software technology, it has assumed practical Several Indian automobile manufacturers such as Tata importance. The root of CRM is relationship marketing, Motors, Maruti Suzuki and Mahindra and Mahindra, which has the objective of improving the long-term expanded their domestic and international operations. profitability of customers by moving away from product- India’s robust economic growth led to the further centric marketing. expansion of its domestic automobile market which Goldenberg (2000) believes that CRM is not merely attracted significant India-specific investment by technology applications for marketing, sales and services multinational automobile manufacturers. In February but rather when it is successfully implemented ; it enables 2009, monthly sales of passenger cars in India exceeded firms to have cross-functional , customer-driven , 100,000 units. technology-integrated business process management The automobile industry in Chennai is the base of 30% strategy that maxims relationships. of India’s automobile industry and 35% of its automobile Research Methodology component industry. Chennai is the fourth largest Descriptive Research metropolitan city of the country. It is popularly known as the “Detroit of Asia” in recognition of the large number of Descriptive research was under taken because the automotive and auto component companies present. The researcher sought to describe the behavior of variables industrial area around Chennai is replete with automobile and also to infer cause effect relationships. Descriptive manufacturing units, assembling units, automotive parts studies are undertaken in many circumstances. When manufacturing units, and other related industries. the researcher is interested in knowing the characteristics Automobiles manufacturing around Chennai caters to of certain groups such as age, occupation, experience 30% of Indian automobile market. 35% of the automobile etc, a descriptive study is necessary. Hence the component market of India is also dependent on the researcher has chosen descriptive research method for automobile industry around Chennai. the study. Source of Data The Future • Primary Data The Indian automobile industry is expected to grow to US$ 40 billion by 2015 from the current level of US$ 7 Data from primary sources (Customers of various billion in 2008. By the year 2016 the industry is expected bike show rooms) have been collected by conducting to contribute 10% of the nation’s GDP. The industry the survey with the help of structured questionnaire. manufacturers over 11 million vehicles a year, employing • Secondary Data more than three million people. The greatest challenge Data from secondary sources have been collected and competition would be from the Chinese automobile from both published and unpublished records of the industry. The Chinese automobile industry has been able company, besides standard text books on marketing to give stiff completion to India in terms of productivity, management, business magazines, website, etc., cost of manufacturing and technology. Again the present were also used trend of excess manufacturing capability, reduced Research Instrument margins put additional pressure on the industry. The global recession has had a dampener effect on the The instrument used for the data collection was the growth of the industry, but market experts believe it is questionnaire. The questionnaire prepared was only a short term phenomenon and are confident of the structured with close ended, multiple and rating scales. industry bouncing back On the positive side, India’s Sample Size strength in software sector, combined with skilled labour The sample size of the survey is 50 customers. and low cost of manufacturing should place it in a favourable position globally. Recently Ratan Tata, Sampling Method: Convenience Sampling Chairman (Tata Motors) created history by launching the Convenience sampling is used because any person who world’s cheapest car NANO. The cars pricing is around deals with us without any restriction. The sample one lakh, gaining instant recognition in the automobile comprises subjects who are simply available in a industry across the globe. It heralded the coming to age convenient way to the researcher. of the Indian Automobile Industry. Statistical Tools Review of Literature • Percentage Analysis Customer Relationship Management (CRM) has become • Chi-square Analysis one of the most dynamic technology topics of the • Weighted average Analysis

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Table-1 : Satisfaction on the Immediate or Initials Delivery Quality. No of PARTICULARS Percentage Respondents Highly satisfied 4 8 Satisfied 12 24 Neither satisfied nor 18 36 dissatisfied Dissatisfied 8 16 Strongly dissatisfied 8 16 Total 50 100

Chart Satisfaction on the Immediate or Initials Delivery Quality.

Fig. 1

Inference From the table, it is observed that 8% respondents belongs to highly satisfied, 24% respondents belongs to satisfied, 36% respondents belongs to neither satisfied nor dissatisfied, 16% respondents belongs to dissatisfied and 16%respondents belongs to strongly dissatisfied. Chi Square Analysis Table - 2 : The Relationship Between Year Of Experience And Service Offered

Year of Expereience/ Serive Offered Satisfied Neutral Dissatisfied Total Less Than 1 Year 6 5 7 18 1 – 3 Years 5 2 3 10 3 – 5 Years 3 2 3 8 Above 5 Years 6 3 5 14 Total 20 12 18 50

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Table - 3 : Chi-Square Year of Expereience/ Serive Offered Satisfied Neutral Dissatisfied Total Less Than 1 Year 7.2 4.32 6.48 18 1 – 3 Years 4 2.4 3.6 10 3 – 5 Years 3.2 1.92 2.88 8 Above 5 Years 5.6 3.36 5.04 14 Total 20 12 18 50

Null hypothesis (Ho): There is no significance different between year of experience and service offered by bike show rooms Alternative hypothesis (H1): There is significance different between year of experience and service offered by bike show rooms Table - 4

Observed Expected (O-E) (O-E)2 X2=(O-E)2\ E Frequency(O) Frequeny(E) 6 7.2 -1.2 1.44 0.2 5 4.32 0.68 0.4624 0.1070 7 6.48 0.52 0.2704 0.0417 5 4 1 1 0.25 2 2.4 -0.4 0.16 0.0667 3 3.6 -0.6 0.36 0.1 3 3.2 -0.2 0.04 0.0125 2 1.92 0.08 0.0064 0.003 3 2.88 0.12 0.0144 0.005 6 5.6 0.4 0.16 0.0286 3 3.365.04 -0.36 0.1296 0.0386 5 -0.04 0.0016 0.0003 Total(X2) = 0.8534

Calculated value ( X2) = 0.8534 Degree of Freedom = (R-1) (C-1) = (4-1) (3-1) = 6. The table value at 5% level of significance for 6 = 12.52 Calculated value = 12.52 Calculated value < Tabulated value (i.e.) 0.8534 < 12.52 HENCE, ACCEPT NULL HYPOTHESIS. Inference: There is no significance different between year of experience and service offered by bike show rooms

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Table - 5 : Weighted Average Analysis

WEIGHTS 5 4 3 2 1

FACTORS HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED

Turn Around Time 4 13 18 8 7 Delivery of Quality 4 12 18 8 8 Process of 4 14 2 10 20 Validation Service 2 18 12 16 2 Commitment of 12 16 10 4 8 Requirement

Highly Satisfied=5, Satisfied=4, Neutral=3, Dissatisfied=2, Highly Dissatisfied=1.

Table - 6 Factors Weighted ∑fw ∑f X=(∑fw\∑f ) Turn Around Time 4*5+13*4+18*3+8*2+7*1 149 50 2.98 Delivery of Quality 4*5+12*4+18*3+8*2+8*1 146 50 2.92 Process of Validation 4*5+14*4+2*3+10*2+20*1 122 50 2.44 Service 2*5+18*4+12*3+16*2+2*1 152 50 3.04 Commitment of 12*5+16*4+10*3+4*2+8*1 170 50 3.4 Requirement

Ranking Scores belongs to neither satisfied nor dissatisfied, 8% Commitment Of Requirement : I respondents belongs to dissatisfied and Service : II 4%respondents belongs to strongly dissatisfied. Turn Around Time : III • Satisfaction on the turnaround time is 8% Delivery of Quality : IV respondents belongs to highly satisfied, 24% Process of Validation : V respondents belongs to satisfied, 36% respondents belongs to neither satisfied nor dissatisfied, 16% Inference: respondents belongs to dissatisfied and From the survey, it can be observed that most of the 16%respondents belongs to strongly dissatisfied. important is given to Commitment of Requirement, • Satisfaction on the immediate or initials delivery Service, Turnaround Time, Delivery of Quality and quality is 8% respondents belongs to highly satisfied, Process of Validation. 24% respondents belongs to satisfied, 36% Finding of the Studym respondents belongs to neither satisfied nor • Association with bike show rooms is 36% dissatisfied, 16% respondents belongs to dissatisfied respondents belongs to less than 1 year, 20% and 16%respondents belongs to strongly dissatisfied. respondents belongs 1 year to 3 years, 16% • Satisfaction on the process of validation is 8% respondents belongs to 3 years to 5 years, 28% respondents belongs to highly satisfied, 28% respondents belongs more than 5 years. respondents belongs to satisfied, 4% respondents • Satisfaction on getting requirements is 8% belongs to neither satisfied nor dissatisfied, 20% respondents belongs to highly satisfied, 32% respondents belongs to dissatisfied and respondents belongs to satisfied, 44% respondents 40%respondents belongs to strongly dissatisfied. belongs to neither satisfied nor dissatisfied, 4% • Satisfaction on the services is 4% respondents respondents belongs to dissatisfied and belongs to highly satisfied, 36% respondents 4%respondents belongs to strongly dissatisfied. belongs to satisfied, 24% respondents belongs to • Satisfaction on their understanding is 32% neither satisfied nor dissatisfied, 32% respondents respondents belongs to highly satisfied, 36% belongs to dissatisfied and 4%respondents belongs respondents belongs to satisfied, 20% respondents to strongly dissatisfied.

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• Satisfaction on the commitment of requirement is internationalization of markets. Based on different 24% respondents belongs to highly satisfied, 32% analysis, the system of CRM enables to determine the respondents belongs to satisfied, 20% respondents best strategies and their effective implementation that belongs to neither satisfied nor dissatisfied, 8% company should apply for particular customer groups. respondents belongs to dissatisfied and CRM is the system that integrates management of 16%respondents belongs to strongly dissatisfied. customer groups, establishment and management of • How well bike show rooms in getting feedback is marketing companies referring to marketing concept; 8% respondents belongs to very good, 48% especially relationship marketing.CRM is to compete respondents belongs to good, 16% respondents effectively in today’s highly innovative Hi-tech business belongs to fair, 24% respondents belongs to bad world. The most effective one can use the information and 4%respondents belongs to very bad. about the customers to meet their needs to their full • Quality is16% respondents belongs to highly satisfaction. The route to a successful business requires satisfied, 28% respondents belongs to satisfied, 12% that one understands one’s customers and their respondents belongs to neither satisfied nor requirements, and CRM system is the essential guide. dissatisfied, 12% respondents belongs to Generally speaking, the cost of implementing CRM is dissatisfied and 32%respondents belongs to quite high. Today implementing CRM is such a major strongly dissatisfied. project that most executives are apt to think that CRM • Relationship management is 48% respondents is a software tool that will manage customer relationship belongs to highly satisfied, 12% respondents by itself. Actually in real sense, CRM is the bounding of belongs to satisfied, 16% respondents belongs to customer strategy and processes, supported by the neither relevant software, for the purpose of improving customer loyalty and eventually, corporate profitability. Even though Suggestion and Recommendation there are many players offering services, if we can provide • CRM should be implemented after creating a a single window solution with right price, we can persuade customer strategy/marketing strategy. Many prospective clients to shift their business & seize a management thinkers believe that implementing sizeable market share. Most of the players are either CRM software is equivalent to creating marketing strong in commercial project services or Industrial project strategy. But in real sense, CRM software is just an services or facility management services & therefore, enabler to move their strategy into action. Before they are not in a position to give wholesome solutions in implementing CRM software, a company should all the fields. This gives us opportunity to offer the entire formulate appropriate strategy and clarify the purpose gamut of bike show room sot clients with efficient of the strategy. marketing & operation teams in place with a proper CRM • Regular communication with the old customers to retain customers should be there so as to retain them and then convert Reference into lifelong loyal customers. • Company must highlight ‘where we are’ in the • Philip Kotler, Marketing Management (Millennium project, sharing milestones and informing staff ‘what Edition), Prentice Hall Of India (P) Ltd., New Delhi, happen next. 2001.C.R Kothari, Research Methodology, • Company should establish contacts with individuals WishvaPrakashan, New Delhi, 2001. who have a real interest in the company and products. • Uma Sekaran, Research Methods for Business, John • When the company approaches the wrong people Wiley and Sons Inc., New York, 2000.Amir D.Aczel who do not have any real interest in the company, and JayavelSounderpandian, Business Statistics (5th they are perceived as stalkers and lose potential edition), Tata McGraw-Hill publishing company customers. limited, New Delhi, 2000Gupta, S.P., Statistical • To make CRM effective and successful, there should Methods, New Delhi, be full cooperation and co-ordination of various wings • Sultan Chand & Sons Publishers, Thirty Fourth that are involved in company’s various functions such Edition, 2005.RajendraNargunkar, Marketing as the production processes, latest innovations Research – A Complete Guide.Tony Proctor, Second involved, marketing practices and healthy Edition, Essentials of Marketing Research, Financial maintenance of employees and customer relations. Times-Prentice Hall Publishing. Conclusion • WEBSITESwww.google.co. in www. ebscohost. Building relationships with customers becomes com www. jgate. com necessity in the present scenario of globalization and

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STUDY ABOUT THE BOTTLENECK OF COOPERATIVE BANKS

Sanitha A.C1

Abstract Cooperatives Banks are those, which are working especially for the benefit of rural community. They have the capacity to serve the low class community. They have lot of drawbacks that’s why they can’t compete in this present scenario. Here the study is concentrated on the weakness of cooperative bank and the main drawbacks are lack of proper automation, modern facilities, financial resources and professional management. After acquiring adequate finance, the bank can solve the above three problems easily. Through proper technological advancement s in its operation, the bank can attract youth and can compete in this present scenario. Key Words: Cooperative Banks-Organizational Factors-Social Factors-Operational Factors-Loan based Factors

Cooperative Banks 3. Operational Factors Cooperative Banks are those institutions consisting of More NPA persons who join together as its members on voluntary Delay in Decision Making basis for the promotion of their common economic 4. Loan Based Factors interests. It is generally considered as an organization Interest Rate for Loan is high of economically weaker sections of the community who More procedure for sanctioning loan associate together with a view to safeguard their interest from the exploitation by the stronger sections. Background of the Study Cooperative movement has made considerable progress 1. Sachin R Agrawal and Dr. S SSolanki in their study in all the developing countries like India. Cooperation “Problems faced by Co-operative Banks and created human values and also tries to secure better perspectives in the Indian Economy” revealed that, standard of living to its members. The people are the cooperatives have lot of limitations and the major interested to become a member in cooperative limitation is lack of technology. So take measures organization or cooperative sectors, because it provides to add technology in its working and it will help the different types of loans and assistance. These institutions m to compete in the modern era. help the different sections of society for their development 2. Jyothi Gupta and Suman Jain in their study “A Study without any discrimination. They offer the membership on Cooperative Banks in India with special reference to all people without looking the cast and creed. to Lending Practices” suggested that, cooperative Cooperative Banks have good qualities but it has lot of bank should adopt modern practices like Internet problems, this leads to big block in its future growth. banking, Credit card, ATM etc., and also to accept Bottleneck of Cooperative Banks new schemes to attract the new customers. These 4 factors (out of 11 Variables) are derived after 3. Prof. VirenChavada in his study “Study on Problems EFA and Issues faced by Co-operative Banks in Indian 1. Organizational Factors Economy” revealed that, cooperatives are in the back Lack of Proper Automation steps because they don’t have the modern facilities like Net banking, Mobile banking, Online Banking, Lack of Modern facilities E-banking, ATM etc., and the study suggested thatto Lack of Financial Resources accept these to compete in the modern world. Lack of Professional Management Significance of the Study 2. Social Factors More Social commitment Cooperatives are those institutions performing especially for the benefit rural community. They have good qualities Loss Schemes like OTS/Loan Waiver to serve the economically weaker sections of the society. More Political Pressure It cannot compete along with other financial institutions

1 .Senior Research Fellow, MG University-Kottayam.

Special issue November 2015 Page 191 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 because it has lot of drawbacks. These drawbacks lead H0: There is no significant difference among educational to block in its future developments. These blocks are qualification with respect to ganizational Factors called Bottleneck of Cooperatives. So this study is H1: There is no significant difference among educational relevant. qualification with respect to Limitation of This Study Organizational Factors This is only a Case Study based with Sample size of 30 Research Methodology respondents. So its Findings are based on these with Study is Descriptive and Analytical in nature. Quota its limitations. Sampling (Non-Probability Sampling) has been applied Objectives of the Study here. Primary Data has been collected (Sample size)with 30 respondents (they are the Borrowers of Cooperative 1. To identify which factor is most contributing to this Bank) from 10th ward of Kaipamangalam Grama study Panchayat of Thrissur District (Population of the study) 2. To analyze is there any difference among age group by using Questionnaire (Data Collection Tool) with 2 with respect to the factor which is more contributed Demographic Questions and 4 Factors (after EFA) based to the study on Drawbacks of Cooperatives. 3. To analyze is there any difference among educational Here the distribution is Normal. So parametric tests of qualification of respondents with respect to the factor Mean and SD (Descriptive Analysis) and ‘One-Way which is more contributed to the study ANOVA’ (Inferential Analysis) has been applied here. Hypothesis for the Study Analysis and Interpretation H0: There is no significant difference among age group Reliability Analysis with respect to Organizational Factors With the help of “Cronbach’s Alpha”, the 11 statements H1: There is a significant difference among age group are tested and the result is ‘0.604’ and it is good with respect to Organizational Factors (Table : 1)

Table - 1 : Exploratory Factor Analysis Factors Statements Factor Loading Eig en Value % of Variance Cumulative %

I OF1 0.830 2.650 24.092 24.092 OF2 0.774 OF3 0.652 OF4 0.501 2 SF1 0.721 1.761 16.013 40.106 SF2 0.716 SF3 0.584 3 ORF1 0.914 1.632 14.840 54.946 OPF2 0.600 4 LF1 0.729 1.360 12.638 67. 314 LF2 0.609

Note: 4 factors have been extracted out of 11 variables. Here the KMO value is 0.617 and P Value is 0.009 so the EFA is well and good for this study. Here the study lost only 32.686 % of information content. From the result of Principal Component Analysis, Variables extracted more are ORF1 (0.0.870) in Factor 3, OF2 (0.803) in Factor 1 and ORF2 (0.765). Descriptive Analysis Out of the four factors, the Organizational Factor (Highest mean value of 14.13 and Lowest SD of 3.919) contributed more to the present study. N Par test H0: The distribution is normal H1: The distribution is not normal After the One sample KS, P Value is 0.967, so accept the Null Hypothesis, that the distribution is normal

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One-Way ANOVA (Parametric Test) H0: There is no significant difference among age group with respect to Organizational Factor H1: There is a significant difference among age group with respect to Organizational Factor

Table - 2

Age Group in years Mean SD F Value P Value Below 30 11.33 3.786 1.888 0.171 30-60 13.95 3.909 Above 60 16.60 3.209

Note: Here the P Value is 0.171, so accepted the null hypothesis that, there is no significant difference among age group with respect to the opinion towards Organizational Factors H0: There is no significant difference among educational qualification with respect to Organizational Factor H1: There is no significant difference among educational qualification with respect to Organizational Factor

Table - 3 Educational Qualification Mean SD F Value P Value Below 10th Std 15.63 3.378 0.933 0.439 10th Std -+2 14.29 4.250 +2 –UG 12.29 3.817 Above UG 13.00 -

Note: Here the P Value is 0.439, so accepted the null hypothesis that, there is no significant difference among educational qualification with respect to the opinion towards Organizational Factor Findings of the Study 1. Out of the 11 Variables, Variable 1 (OF1) contributing more to this study (Mean 3.77 and SD 1.223) and Variable 4 (OF4) contributing more after Variable 1 (Mean 3.57 and SD 1.406) 2. Out of the four factors, the Organizational Factor (Highest mean value of 14.13 and Lowest SD of 3.919) contributed more to the present study. 3. There is no significant difference among age group with respect to the opinion towards Organizational Factors 4. There is no significant difference among educational qualification with respect to the opinion towards Organizational Factor 5. Most of the respondents belong to the age group 30-60 years (73.70%) 6. Most of the respondents belong to the educational qualification between 10th and +2 (46.70%) and 2nd goes to the educational qualification below 10th Std. Suggestion As per the study, most of the people attracted towards Cooperative Bank are belonging to the age group 30-60. Only 10% of the sample is attracted towards Cooperatives (Below 30 years). So the Cooperatives have to adopt more from the technology, then only it can overcome these problem. Conclusion Here the study is concentrated on the weakness of cooperative bank and the main drawbacks are lack of proper automation, modern facilities, financial resources and professional management. After acquiring adequate finance, the bank can solve the above three problems easily. Through proper technological advancement s in its operation, the bank can attract youth and can compete in this present scenario.

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References • Sachin R Agrawal and S SSolanki “Problems faced by Co-operative Banks and perspectives in the Indian Economy”, IRACST-International Journal of Commerce, Business and Management (IJCBM), Vol. 1, No. 2, October 2012,ISSN:2319 2828, Pp 53-54, http://www.iracst.org/ijcbm/papers/vol1no22012/4vol1no2.pdf • Jyothi Gupta and Suman Jain “A Study on Cooperative Banks in India with special reference to Lending Practices”, International Journal of Scientific and Research Publications, Vol. 2, Issue 10, October 2012, ISSN: 2250-3153, Pp 1-6, http://www.ijsrp.org/research-paper-1012/ijsrp-p1039.pdf • VirenChavada “Study on Problems and Issues faced by Co-operative Banks in Indian Economy”, International Multidisciplinary Research Journal, Vol. 2, Issue 1, Jan 2015, ISSN: 2349-7637, Pp 1-3, http://www.rhimrj.com/ admin/upload/JAN15020104.pdf

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ONLINE SHOPPING IN KOTTAYAM: AN EMPIRICAL EXAMINATION OF ITS CUSTOMER SATISFACTION PERSPECTIVES

Sanju P Cherian1

Abstract Online shopping has become new type of retail shopping. It has now been adopted all over the world including Kottayam. This study envisages finding out “customer satisfaction towards online shopping”. This study explored the major factors that may influence customer’s online shopping satisfaction in Kottayam region. Descriptive research design was used for the study. This paper is an account of the quantitative research study based on primary data derived through structured instrument. it was found that consumers purchasing decisions were dependent on various factors like Low price, reliable, website design, security and privacy, time saving, safety and customer service. The article concludes by considering the implication for future research.

Introduction provision of goods or services also referred to as the With the rapid development of network technology, ‘digital economy’ (Kling and Lamb 2000, p. 297). Internet electronic commerce and e-marketing had been formed retailing seems to be growing in all parts of the world, and developed gradually, thereby forming new business including developing countries. The Internet population model and business chance which exerted an important is younger, more affluent, and better educated than the influence on the country’s economic future development general population, with an almost equal number of men and international competitiveness. Online shopping and women. But as more people find their way onto the (sometimes known as e-tail from “electronic retail” or e- Internet, the cyberspace population is becoming more shopping) is a form of electronic commerce which allows mainstream and diverse. Internet users in general place consumers to directly buy goods or services from a seller greater value on information and tend to respond over the Internet using a web browser. Change is occurring negatively to messages aimed only at selling. They want at an accelerating rate; today is not like yesterday, and to decide what marketing information they will receive tomorrow will be different from today. Continuing today’s about which products and services and under what strategy is risky; so is turning to a new strategy. In the conditions. In on-line marketing, it is the consumer, not past decade, there has been a dramatic change in the the marketer, who gives permission and controls the way consumers have altered their shopping behavior. interaction. Internet consumers have around-the-clock access to varied information sources, making them better Due to the increasing usage of smart phones and internet informed and more discerning shoppers. Due to the penetration, people can easily access internet and shop changes taking place in the economy in connection with via online networking sites. This has brought new the technological opportunities provided by the Internet, companies to concentrate on online retailing. On-going there is no reason to think that e-commerce is only a advancements in information and communication passing phenomenon (Baily and Lawrence 2001, p. technologies (ICT) are providing the basis for the 311)Online retailing (or, ‘e-tailing’, ‘business-to- emergence of what, at the macro level, has been referred customers’ e-commerce (B2C)) evolves along with the to as the ‘new economy’ (Kling and Lamb 2000, p. 296). emerging technological systems around the Internet. The There will be a continuing push toward deregulation of expression ‘new economy retail strategies’ is here the economic sector. These three developments— understood as referring to both online retailing and the globalization, technological advances, and deregulation network relationships that correspond to different online — spell endless opportunities. retailing strategies. As part of these strategies, There are many understandings of the ‘new economy’ information technology (IT) offers a broad spectrum of but it is here discussed in the more specific sense of opportunities for connecting retailers, their supply chains the use of digital technologies for widening business and centrally customers (Borenstein and Saloner 2001). practices in the development, production, sale, or The exact content and extent of these developments

1 .MBA student SMBS, MG University

Special issue November 2015 Page 195 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 are still covered by clouds of uncertainty both findings because, ID authentication while making online technologically and economically (related to transaction and credit system is not available in China. technological development, financial possibilities – In another study done by (Alkarim,2013) prove that especially presently as the ‘patience’ of capital has customer purchasing decisions were dependent on diminished – consumer behaviour, competition, various factors like information availability, less regulation, extent of collaborative effort in activity clusters, expensive, best offers, time saving and service quality. etc.). The recent quick swing from dotcom mania to According to customer’s opinions, time saving is the dotcom crisis needs to be acknowledged at the outset. most important motivating factor for online shopping. For a sustainable growth in business the company has to adapt the new environment. So it has turn out to be (Harn , 2013) conducted a study showed that user important for retailers to adapt this changing environment. satisfaction with the website is decided by information This study aims at identifying customer satisfaction quantity, design, transmission speed, user-friendliness towards online retailing. Scope of the study limited to of search structure, and update pace. It suggests that the online customers at Kottayam district who have made website characteristics are likely to influence consumer online purchases at least once. information search through the internet. Research Question (Kim, 2005) has conducted an empirical study in UK on In this research, through the literature study and survey online customer satisfaction. The results show that ten method, I will try to get answers for the following factors on index are good exponents of satisfaction, such questions as website design, time saving, privacy, securitysafety, reliable, ease of use, product quality, customer services 1. Why customers prefer online shopping? and service quality 2. What are the influencing factors while making online shopping? (Jarvelainen, 2007) Turku, Finland, has shown in her empirical study, there are many online information Research Objectives seekers who, decide to stop the shopping process, just This study regarding “customer satisfaction towards before the completion of the transaction. The reason is online shopping “will be accomplished by the following deeply rooted in the Internet based trust results. The objectives study concentrates on e-commerce environment, i.e. 1. To identify the factors that may influence customer’s security and privacy issues, and how consumers choose online shopping satisfaction at Kottayam their purchasing channels. 2. To identify the most important factor among the (Jiang, Jones, &Javie, 2008) have shown in their factors that may influence customer’s online empirical study, about US customer worries on Internet shopping satisfaction at Kottayam security, while shopping over the Internet can influence online buying behavior and these worries may lead to Literature Review identity theft. A good strategy to increase consumer trust (Vegiayan, 2013) identified the factors that may while ordering online could be third-party certification influence customer’s online shopping satisfaction. The programs. study is used the quantitative approach to achieve the objectives .Data collected through online survey by using (Suki&Suki, 2007) have conducted an empirical study, ‘E-survey creator’ and ‘SPSS’ was used to analyze data. in Malaysia. They proposed a model, to identify the The study shows that purchase quality has the highest influence of perceived value, perceived risk and perceived relationship as well as highest influence towards the enjoyment on online consumer’s innovativeness, in customer satisfaction. relation to adoption of online shopping. In the results perceived risk was prominent indicator. To assess (liu, He, Gao, &Xie, 2008) have conducted an empirical Malaysians online shopping behavior, e-retailers should study on Chinese customers for online shopping. The observe perceived risk as prominent indicator. outcome of their research shows that customer services Malaysians risk perception and concern about online are strongly, predictive of online shopping customer shopping, are mostly related to privacy and security satisfaction. Further, delivery and customer service has issues. In which, privacy and security of personal very important role in Chinese market. The first information, online transaction security and uncertainty impression is the design of website, its contents, which of product quality are included. can improve customer satisfaction. Continence and easy to use function can save time and improve satisfaction. Research Methodology Finally, Security and privacy becomes spotlight in their A quantitative research approach was adopted in this study to explore the major factors that may influence

Special issue November 2015 Page 196 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 customer’s online shopping satisfaction in Kottayam region.. The source of data collection has been primary as well as secondary. The source of secondary data has been journal articles, research papers, Ph. D thesis etc. Updated information from various secondary sources has been collected and used in this paper. The primary data has been collected using a structured questionnaire which consists of 13 questions using a 5- point Linker scale to analyze the factors that may influence customer’s online shopping satisfaction. The sample size of data collected using convenient sampling technique.

Table - 1 Research Type Descriptive research Sampling Technique Convenience sampling Sample Unit Online shopping customers in Kottayam Sample Size 50 Tools For Data Collection Questionnaire Tools For Data Analysis Percentage analysis method Variables Website design, low price, reliable, Security and privacy, time saving, Safety, customer service

Data Analysis and Interpretation I am satisfied with the ease of use of the online website

Fig. 1

I am satisfied wiith the ease of use of the online website % 20%

30% 18%

50%

Fig. 2 The result of 50 % rating “agree” and 30% rating “strongly agree” is an indication that majority of online shoppers are satisfied with the ease of use of the online website.

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ONLINE PRODUCTS ARE LOW PRICE

Fig. 3

Online products are price 0% 4%

18% 34%

44%

Fig. 4

A high demand is observed for low price factor. The result of 34% rating” strongly agree” and 44% rating “ agree” is an indication that majority of online shoppers are agreed with this statement “online products are low price”

The products are packed safely

Fig. 5

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The products are packed safely 0% 4% 10% 22%

64%

Fig. 6 The result of 22% rating “ strongly agree” and 64% rating “ agree” is an indication that majority of online shoppers are satisfied and do not face any problem of product package. It is surprising to note a percentage of 0 on delivery of broken goods which shows that customers are quite satisfied with the condition of items received through an online purchase.

It is time saving to purchase online

Fig. 7

It is time saving to purchase online 0%

10%

10%

44%

36%

Fig. 8 A high demand is observed for time saving factor. The result of 44% rating “ strongly agree” and 36% rating “ agree” is an indication that majority of online shoppers are agreed that time saving is a major influencing factor in online shopping.

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SERVICE QUALITY

Fig. 9 I am satisfied with online shopping service quality 0% 2% 12%

28%

58%

Fig. 10 Out of 50 samples, 29 respondents were agree with the online shopping service quality. At the same time, the 28 % of neutral population also needs to be addressed.

Online product warranty policies are satisfactory

Fig. 11

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Online product warranty policies are satisfactory 0% 6% 2% 16%

42% 34%

Fig. 12

A high demand is observed for providing warranty policies to the customers. Total 76 % of respondents strongly agreed and agreed the warranty policies. This indicates that warranty services are very reliable.

I get better online services as compare to in-store services

Fig. 13

I get better online services as compare to in-store services 0% 10% 18%

36%

36%

Fig. 14

36 % respondents “agree” that online services are better than in-store services. At the same time a large portion of people are neutral. They believe that both online and in-store services have no particular different.

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Table – 2 : Sample statistics

Number Questions Mean Value Scale Range 1 How often do you shop online 3.06 Once a month 2 I am satisfied with the ease of use of the online 4.08 Strongly agree website 3 The websites are reliable 3.94 Agree 4 My privacy and security is taken care in online 3.8 Agree shopping 5 Online products are low price 4.08 Strongly agree 6 The products are packed safely 4.04 Strongly agree 7 It is time saving to purchase online. 4.14 Strongly agree 8 I am satisfied with online shopping service quality 3.8 Agree 9 Online product warranty policies are satisfactory 3.34 Agree 10 I get better online services as compare to in-store 3.38 Agree services

Result and Discussion When asked about the “ease of use of the online website” The result of 50 % rating “agree” and 30% rating “strongly agree” is an indication that majority of online shoppers are satisfied with the ease of use of the online website. Respondents also have given interesting opinion about the “reliability of online websites”. Nearly two third respondents somehow agreed that online websites are reliable The result of 54% rating “ agree” and 14% rating “strongly agree” is an indication that majority of online shoppers are satisfied and do not face any problem of privacy and security compared to 2 % who disagree. A high demand is observed for low price factor. The result of 34% rating” strongly agree” and 44% rating “ agree” is an indication that majority of online shoppers are agreed with this statement “online products are low price”. Respondents also have given interesting opinion about “time saving factor in online shopping”. Nearly two third respondents somehow agreed that time saving is a major influencing factor in online shopping. When asked about the “online shopping service quality” respondents have given different opinion. More than 50 % of respondents were considered that online shopping service quality was good. Rests of them were either neutral or disagree. A high demand is observed for providing warranty policies to the customers. Total 76 % of respondents strongly agreed and agreed the warranty policies. This indicates that warranty services are very reliable.36 % respondents “agree” that online services are better than in-store services. At the same time a large portion of people are neutral. They believe that both online and in-store services have no particular different. Online customers expect much privacy and security from the websites, which in turn, would help the industries to create a good trust and image into the minds of its online customers. Ease of use, low price, safety and time saving variable shows to have highest relationship with the customer. Conclusion The Endeavour of this study is to identify the influencing factors while making online shopping. Therefore, from the findings it was found that consumers purchasing decisions were dependent on various factors like Low price, reliable, website design, security and privacy, time saving, safety and customer service. The study was done with an overview of current and past research works done on related topics and with the help of quantitative data collection. The study was on conducted among the Kottayam respondents who respond very well to the research study and the respondents were prolific in their responses and they were very good at their answers which implies that the respondents had a good understanding of the website and how it functions. Similar study could focus on service quality and product quality impact on customer satisfaction and loyalty, which was found to be quite low in this research project. This might be of value for the industry. Future research can consider the impact of other variables such as, e-ethics, and third party certification.

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Bibliography • Harn, P.,(2008). Web navigation behaviour of Malaysians in relation to online purchasing. International journal of business and society, • Jarvelainen, J. (2007). Online purchase intentions: An empirical testing of a multiple-theory model. • Journal of organizational computing and electronic commerce, • Jiang, P., Jones, D. B., &Javie, S. (2008). How third party certification programs relate to consumer trust in online transactions: An exploratory study. Psychology & Marketing. • Kala Devi veginyan (2013), “online shopping and customer satisfaction in malaysia”.International journal of marketing practices • Kim, H. R. (2005). “Developing an index of online customer satisfaction.” Journal of financialservices marketing. • liu, X., He, M., Gao, F., &Xie, P. (2008). “An empirical study of online shopping customer satisfaciton in China: A holistic perspective”. International Journal of Retail & DistributionManagement. • Ruskie, L. (2007). The EPSI index applied to a Danish business club Poland customer satisfaction analysis. Master’s Thesis . Aarhus School of Business. • Rashad Al Karim (2013), “customer satisfaction in online shopping: a study into the reasons for motivations and inhabitations”. Journal of business and management • Suki, N. M., &Suki, N. M. (2007). Online buying innovativeness: Effects of perceived value, perceived risk and perceived enjoyment. International journal of business and society

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CONSUMER PREFERENCE TOWARDS ORGANIC VEGETABLE

Zita V Bosco1 Boniface P.J2

Abstract This study investigates the consumer preference towards organic vegetables. The objectives are: 1) To analyze the consumer preference towards organic vegetables in Thrissur town area. Sampling Frame used for analysis is simple random sampling, of which 30 organic consumers in Green Mythri at Athani are surveyed. Data were gathered from pre- structured interview schedules, observations and also from secondary sources such as Magazines, Journals, Published articles, Newspapers, published thesis, internet sources etc. The data collected were analyzed using Percentage analysis, index, satisfaction index and attitude index. In the present context, organic products are became more important because consumers are health conscious than price conscious. Organic vegetables are grown without use of chemical pesticides so that they have no harmful effects of chemical fertilizers .Farmers are also well known about importance of organic farming. They are converting their farm land into organic land. Consumers have high preference towards organic vegetables. They are purchasing organic vegetables from retail outlets. Some consumers have their own farm productions. Inorganic consumers are aware about organic vegetables .Price of the organic vegetables can’t afford by common men. Taste and nutrient value are the important attributes of organic vegetables. The level of consumer satisfaction towards organic vegetables revealed that they are moderately satisfied with taste, nutrient value, freshness, value for money and source of information. They are moderately satisfied with price, availability and marketing channel. The important factor which influence the consumer preference towards organic vegetables are chemical free pesticide, ecofriendly, health aspect. As a whole, we would be conclude that the consumers high preference towards organic vegetables. Key Words: organic vegetables, consumer satisfaction consumer preference, organic retail outlets

Introduction the use of chemical pesticides, weed killers or fertilizers. International Federation of Organic Agriculture The farms are typically more traditional and involve all Movements defines organic agriculture - “Organic natural pesticides. They are advantages by purchasing agriculture is a production system that sustains the organic vegetables, we can support farmers who are health of soils, ecosystems and people. It relies on cultivating organic vegetables, safer than conventional ecological processes, biodiversity and cycles adapted vegetables to local conditions, rather than the use of inputs with Statement of the Problem adverse effects. Organic agriculture combines tradition, In 20 th century, we witness technological upgrading in innovation and science to benefit the shared environment agriculture. These upgrading leave the remark on and promote fair relationships and a good quality of life landscape and rural population. Invention of machinery for all involved...” has reduced the labor and increase the chemical The organic food means organic produce and other pesticides and fertilizers. This industrialized agriculture ingredients that are grown without the use of pesticides, destruct the ecological balance and effect the agricultural synthetic fertilizers, sewage sludge, genetically modified production. Food safety and quality issues triggered the organisms, or ionizing radiation. In the case of animals consumer awareness and people start to think about that produce meat, poultry, eggs, and dairy products do organic and vegetables The farmers in Kerala are not take antibiotics or growth hormones. convinced that the only way is to return to the traditional Today food are not intended to only satisfy hunger but sustainable ways of cultivation without harming the to provide nutrients for human. We know that vegetables ecosystem. Thus the organic farming, a system with are rich source of nutrients but now -a -days these the broad principle of ‘live and let live’, came up which vegetables are more poisonous by using this chemical was recognized nationally and internationally. There is fertilizers. Here lays the importance of the organic a rich potential for promoting organic farming in Kerala vegetables. Organic vegetables that are grown without in the light that intensity of inorganic agriculture here is

1 .Research Scholar, Dept. of rural marketing management, KAU,Thrissur 2 .Research Scholar, Dept. of rural marketing management, KAU,Thrissur

Special issue November 2015 Page 204 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 not severe compared to that in other states in the Table - 1 : Source of purchase of vegetables by country. The state department of agriculture commenced consumers organic farming promotional activities since 2002-2003. Number of Percentage No. Source Today society is showing great interest to their and health respondents (%) and prefer foods with more nutritional value and more concentrated natural production methods. The 1 Own farm 2 6.6 consumption pattern of the consumers is changing day production by day. People are shifting their preference from 2 Direct from 9 30 conventional farming to organic farming. Through this neighbour farmers shift people believed that they will be healthier and the 3 Whole sale market 4 13.3 future generation can be saved from many diseases. Hence it is necessary to understand the changing 4 Retail market 15 50 behavior of the consumers, to clearly identify the reasons Total(N) 30 100 for the shift in preference and to identify the demand for Source: Primary data the organic vegetables in the future Objectives of the Study: Table 1 revealed that 15(50percent) respondents are To analyze the consumer preference and satisfaction depending on retail market . They opined that availability towards organic vegetables , and convenience of purchasing is the major reason for preferring retail market. It can also be noticed that 30 Materials and Methods percent purchased vegetables from neighbouring farms. Location of the study Nature Of Consumers Preferring Organic Vegetables The study was conducted in Green Mythri supermarket in Athani in Thrissur district. Consumers vary in their consuming pattern. The nature of consuming vegetables by organic consumers is Period of the study given in Table 2 The study was conducted during the period from 1st January 2015 to 30th may 2015. Table - 2 : Nature of vegetables consumed by organic consumers Sample Design and Data collection Number of Percentage The study was based on both primary and secondary No. Consumer respondents (%) data. Primary data were collected through a structured interview schedule covering the objectives of the study 1 Inorganically Nil Nil .A sample of 30 organic vegetable consumers were grown vegetable selected for the collection of primary data. Secondary 2 Organically grown 30 100 data were collected from reports, Journals and internet vegetables for understanding the current importance. Total(N) 30 100

Data analysis Source: Primary data The collected data were analyzed and interpreted with the help of appropriate statistical tools such as Table 2 reveals that 30(100 per cent) respondents are percentage and indices. organic consumers. Analysis and Discussions Period Of Purchasing Organic Vegetables Source of Purchase of Organic Vegetables Period of purchasing organic vegetables means how long the product has been in use by the respondents. It is The purchase place is the preference of the consumers very important to know about the period of purchase towards a particular place for purchasing the product. (Table : 3) For analysing the place preferred by consumers, respondents were asked to specify their preferred place of purchasing organic vegetables (Table : 1)

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Table - 3 : Period of purchasing organic Consumer Satisfaction towards Organic Vegetables vegetables The consumer satisfaction measures whether the organic vegetables can meet the consumer expectation. By Number of Percentage No Period respondents (%) Table 6 we can analyze the satisfaction of consumers towards organic vegetables. 1 Below half year 7 23.3 For this purpose different statements related to organic 2 One year 13 43.3 vegetable were selected and data collected on 5 point 3 One-two year 10 33.3 scale of Likert summated rating. A satisfaction index was constructed by giving weightages of 5 points from 5 30 100 Total to 1(highly satisfied and highly dissatisfied).For this Source: Primary data purpose of interpretation index score was rated as follows. Table 3 shows that13 (43.3 percent) consumers are using Less than 30 - Highly Dissatisfied(HDF) organic vegetables for period of one year. From this table, most of consumers are using organic vegetables 30-50 - Moderately Dissatisfied (MDF) for one year.10 (33.3 per cent) of respondents are using 50-70 - Resigned (R) organic vegetables for more than one year. By this we 70-90 - Moderately Satisfied (MS) understood that consumers are health conscious. 90 and above - Highly Satisfied(HS) Preference of Consumers towards Organic Consumer satisfaction about the organic vegetables is Vegetables given in Table 6 Table - 4 : Preference of consumers towards Table - 6 : Consumer satisfaction towards organic organic vegetables vegetables Number of Percentage Rating of No Preference No Items Score Index respondents (%) index 1 Yes 30 100 1 Price 112 74.66 MS 2 No NIL NIL 2 Taste 116 77.30 MS Total 30 100 3 Nutrient value 122 81.33 MS Source: Primary data 4 Freshness 105 70.00 MS Table 4 shows that all the consumers 30(100 per cent) 5 Shelf life 109 72.67 MS preferred organic vegetables. The reason behind the 6 Availability of 94 62.67 R preference of organic vegetables is presented in Table 5 vegetables Table - 5 : Reason for preferring organic 7 Marketing 116 77.33 MS vegetables channels Number of Number of Percentage 8 Eco- 132 88.00 MS No Reason respondents respondents (%) friendliness 1 Better taste 10 10 33.3 9 Hygiene 129 86.00 MS 2 Eco-friendly 9 9 30 10 Source of 108 72.00 MS information 3 Hygiene 3 3 10 11 Authenticity 110 73.33 MS 4 Nutrient 8 8 26.6 value 12 Value for 133 88.67 MS money Total 30 30 100 13 Composite 1423 79.06 MS Source: Primary data index Table 5 revealed that eco-friendly and better taste of Source : Primary data organic vegetables are the major reason for preference Table 6 reveals that consumers were moderately followed by nutrient value. 10 per cent respondents are satisfied with price, nutrient value, freshness, shelf life, preferring organic vegetables because of hygiene factor. marketing channel, hygiene, source of information and authencity of organic vegetables. Organic vegetable is

Special issue November 2015 Page 206 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 tasty .So that the consumers are moderately satisfied Suggestions with taste of organic vegetables. They have resigned stage I. The Government and other institutions may extend in respect to availability of vegetables. financial support to organic farmers to minimize the Findings and Suggestions financial risk in adoption of organic farming. The present study was an attempt to analyze the II. Consumers should be properly informed on the value preference of consumer towards organic vegetables, with for money and health aspect of the organic special reference to Green Mythri. Data were collected vegetables. from 90consumers, out of which 30 were wholly organic III. Awareness campaign about organic vegetables vegetables consumers and rest was common consumers should be made to the public from Thrissur town area. The consumers coming to one IV. More value added products of organic vegetables outlet which sells organic vegetable, Green Mythri at should be introduced into the market. Athani was surveyed. Secondary data were collected V. More organic outlets should be open from the reports, Journals and internet. The study helped to understand the preference, attitude and satisfaction Conclusion level of consumers towards organic vegetable. The The analysis and findings of the study highlights collected data were analyzed and interpreted with the consumer preference towards organic vegetables and help of appropriate statistical tools such as percentage their level of satisfaction.. They are preferring organic and indices. vegetables because of chemical free and taste. Organic The major findings of the study include preference, users are satisfied with organic vegetables due to its attitude and satisfaction level of consumers towards quality, taste and health aspect etc. Consumers overall organic vegetables attitude towards organic vegetables were not favorable due to its high price and non-availability. However they Findings agree with the health aspects, quality, nutrient value and I. In the case of organic vegetable consumers, majority environment friendly nature of the organic vegetables. of them were spending 1000-1500 for purchasing This study concluded that consumers have high organic vegetables .Most of them were spending preference towards organic vegetables but common man 500-1000 for vegetables in the case of inorganic can't afford the price of organic vegetables. consumers References II. In case of organic vegetable consumers, majority were purchasing vegetables daily. • Assis, K. and Ismail, H.A.M 2011. Knowledge, attitude and practices of farmers towards organic III. Major source of purchase of organic vegetables were farming.Int.J.Eco.Res.2 (23):1-6. from retail market. • Chandrasekhar, H.M.2014.Consumer perception IV. In case of organic consumers, major reason for towards organic products-a study in Mysore purchase of organic vegetables was chemical free city.Int.NGO J.5 (1):34-39. pesticide. • Hossain, T. 2007. Adoption of Organic Rice for V. In case of organic consumers, majority of the Sustainable Development in Bangladesh. consumers preferred towards organic vegetables. • Journal of Organic Systems VI. In case of organic consumers, majority of respondents have highly favorable attitude with • Malissiova ,E. , and Govaris,E., 2013 .consumer organic vegetables because of the quality, nutritious attitude and behaviour towards safe food.Food value and taste. Control . 34( 1): 241-248 VII. Organic vegetable consumers are satisfied with organic vegetables due to its taste and nutritious value.

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POST-HARVEST VALUE ADDITION IN JACKFRUIT- SCOPE FOR FPO

Varnana Nair1 Dr.P Shaheena2

Abstract Jackfruit plays a significant role in Indian agriculture and culture. It was cultivated in India 3,000-6,000 years ago. Jackfruit is widely grown as an important tree in Kerala’s homesteads and also as a shade crop in coffee plantations. It is popularly known as poor man’s fruit in the eastern and southern parts of India. The tender fruits of the tree are used as vegetable and the ripe ones as table fruits. The analysis revealed that Jackfruit is widely grown as an important tree in Kerala’s homesteads. Commercial cultivation of jackfruit is still at a primitive stage in India. Kerala Agricultural University has developed many value added products of jackfruit. Jackfruit is a commonly seen fruit, once it is the life saver of people but now it is become one of the underutilized fruit, post-harvest value addition is a solution to this problem. Majority of the people were not even heard about the different value added products. Lack of supervision, training and guidance were the major problems identified in this study. But majority of the people are ready for value addition if proper assistance is given. The farmers were willing to join FPO to earn more income. The study showed that there is an immense potential for Farmer Producer Organization for jackfruit. The composite index about the farmer’s perception regarding the value added products of jackfruit stood high, which is an indication that acceptability for such products are also high. There is a prospective market for these products in India as well as outside the country and has a good export market potential for jack fruit. The study showed that there is a good scope for setting up jackfruit processing units in jackfruit growing areas. This unit helps the farmers to utilize the perishable fruit and generate more employment opportunities in rural areas Key words: FPO –Farmer Producer Organization, post-harvest value addition

Introduction for processing and preserving, which has made it possible The jackfruit, said to be the biggest fruit in the world, is to produce a marketable product which can easily be native to the foothills of the Western Ghats, scientifically handled, packaged in attractive packing, transported and known as Artocarpus heterophyllus, and the tree belongs stored before sale. to the Mulberry family. In India, the total area under Indian economy is predominately agrarian and hence jackfruit cultivation is approximately 1,02,552 hectares, prosperity of our country is possible only through rural of which, an estimated 1,00,000 trees are grown in back development. Increased production, productivity and yards and as intercrop in other commercial crops (betel proper postharvest care of farm produce which supply nut, coffee, pepper and cardamom plantations) in South food and raw materials for different agro based industries India. In India, the major area under jackfruit is in Kerala should get attention. The postharvest facilities to handle state and it was regarded as heavenly fruit in the ancient and process have not developed in tandem with periods. It is grown in an area of 89,701 ha with annual production. As a result 25-30 percent of produce is lost production of 300 million fruits and productivity of 3,568 every due to lack of scientific knowhow on postharvest fruits per ha. (2012-13). management. This is especially true in the case of fruits Jackfruit occupied 29% of the category of fresh fruits which are highly perishable in nature. It is heart burning and it has 1st position in this category. Idukki, Kozhikode to note that tropical fruits such as jackfruit, papaya, and Malappuram districts stand 1st, 2nd and 3rd cahewapple etc. suffer from a postharvest loss to the positions with 15%, 11% and 9% area respectively during tune of 70-90 percent. These natural resources, which 2011-12. In Kerala, two varieties of jackfruit predominate: are treasures of nutrients if properly processed and used varikka and koozha. Varikka has slightly hard inner flesh could contribute substantially to the food and nutritional when ripe, while the inner flesh of the ripe koozha fruit is security of our country. Jackfruit, the biggest fruit in the very soft and almost dissolving. Jack fruit processing world is grown in an area of 89701 ha in Kerala with a has improved during the last few years. The Krishi Vigyan production of 300 million fruits. Jackfruit is highly a safe Kendra’s and CFTRI Mysore has developed technologies fruit as far as the consumers are concerned since it is

1 . Research scholar, College of Co-operation Banking and Management 2 . Faculty, Department of Development Economics, College of Co-operation Banking and Management

Special issue November 2015 Page 208 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 devoid of any chemical residues of insecticides, interview schedule and secondary collected from pesticides, fertilizers etc. due to lack of scientific different sources such as print and online publications. processing and value addition a big chunk of the The collected data analyzed using statistical tools such production (approximately 60 percent) is simply wasted. as percentages, indices Statement of the Problem Analysis Kerala has an eminent role in the production of jackfruit Table - 1 : Gender and age of respondents in India. The area under cultivation is 89701 ha in Kerala and the production exceeds 31crores/year. However Sex Male Female Total commercial cultivation of the crop is comparatively very Age less. Instead home stead cultivation is the main practice 20-30 1 7 8 (13) done by the people. A major share of jackfruit is underutilized. Fully ripened jackfruit bulbs can be used 30-40 3 13 16 (27) to prepare jams, squashes, syrups, candy, fruit bars, 40-50 7 10 17 (28) fruit leather, ready-to-drink beverages, halwas, >50 12 7 19 (32) payasams, puddings, toffee, wine, kulfi and ice-cream. Half-ripened bulbs are processed to jackfruit powder and Total 23 (38) 37 62) 60 (100) used for the preparation of bakery items such as burfi. Source: Primary Survey conducted in Vettikkavala The rind is rich in pectin and can be used for the Gramapanchayth during 13- 20 August 2014 extraction of natural pectin and preparation of jelly. Apart Note: Figures in the bracket shows percentage to the total from better utilisation of perishable fruit this would also result in considerable value addition. The jackfruit was From the table it is clear that out of the 60 respondents once Kerala’s life-saver in months of scarcity, but 23 (38 per cent) are male and 37 (62 percent) are female. recently this under-utilised, under-exploited fruit in homes It could be seen from the table that most of the farmers and hotels. Farmers fail to recognize the opportunities (32 per cent) belong to the age group of more than 50 of jackfruit cultivation where a single bulb of jackfruit years of which 12 are male and 7 are female. Only 8 sells Rs.3 to 5 outside Kerala. Very high degree of respondents are included in the 20-30 age category. spoilage/ wastage occurs in each stage of production of jackfruit. Currently Jackfruits are used during the season Table - 2 : Total land holdings of the respondents as a fruit or as a vegetable ingredient for a several Land Land Total traditional Indian dishes. During off season, it is used Area Owned Leased 32 (53) as fried or dried chips, or as a canned fruit. However almost 80% of the Jackfruits in India are going waste as Sub Marginal 30 (87) 2 (13) 20 (33) there is no organized market for Jackfruit based products Marginal 19 (94) 1(6) 8 (14) and Chefs are reluctant to use Jackfruit for three reasons- 8(100) 0 seasonal, messy to prepare and the aroma spreads in Small 60 (100) the kitchen Total 57 (95) 3 (5) Farmers can overcome this hindrance trough Source: Same as Table 4.2.1 collectivizing the surplus products under one roof named Sub Marginal = <1 acre, Marginal= 1-2.5 acre, Small= 2.5-5 acre Farmer Producer Organizations. It will enhance their bargaining power and can easily adjust for technology It is clear that 53 per cent of the respondents hold less adaptation in value addition. Considering this ground than one acre land i.e. they are coming under the category issue as a focus, a study is attempted to identify the of sub marginal farmers among the sub marginal and existing and potential jackfruit farmers and scope of marginal farmers, 87 per cent and 94 per cent formation of FPO to enhance benefit through value respectively in the marginal category have owned land addition to them. for cultivation. Only 4 per cent respondents have an ownership holding of 2.5-5 acre (small farmers). Of the Objective of the Study total respondents, only 5 per cent operates leased in 1. To Analyse the perceptions of farmers on forming a land. It can be inferred that majority of the farmers in Farmer Producer Organization for value addition in that area possess own land for cultivation (Table : 3) Jackfruit. Methodology of the Study Both primary and secondary data were used for the study. The primary data collected through structured

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Table - 3 : Membership details in association of respondents

Membership Area Total Yes No Sub Marginal 13 (22) 19 (32) 32 (53) Marginal 5 (8) 15 (25) 20 (33) Small 1 (2) 7 (12) 8 (13) Total 19 (32) 41 (68) 60 (100)

The table reveals that only 32 per cent of the respondents have membership in association. It may be noted that the respondents are members of the Self Help Groups and the affiliating organization is Kudumbashree. It may be a natural outcome of the fact that all are females and majority (22 per cent) belongs to the sub marginal category. From the small holder category only one person has membership in Kudumbasree.

Table - 4 : Distribution of households according to the number of stands

No of stands Size of land Varikka Varikka Total holding Planted Naturally grown Planted Naturally grown <1 acre 17 32 3 80 132 (4) 1 - 2.5 acre 8 16 1 65 90 (4) 2.5 – 5 acre 5 12 1 20 38 (5) Total 30 60 5 165 260 (4)

Note: Figures in the bracket shows average number of holdings per households

The table indicates the distribution of jackfruit in household according to the number of stands. The two varieties of jackfruit are popular in Kerala - varikka and koozha. From the survey it is revealed that the varikka is less in number compared to koozha. The 60 households have a total of 260 jack tree, out of which 90 are varikka and 165 are koozha. The study also revealed that 87 per cent of the trees were grown naturally, which shows that tree can be grown without much care and attention. The crop is resistant to the climatic variations in Kerala, thus making it one of the most suitable perennial crops for the agro climatic zones of the state. Moreover, the cost associated with is negligible. Nevertheless, people prefer varikka variety for planting rather than koozha. Area, production and productivity of jackfruit The production of jackfruit here calculated as Kg and the average size of jackfruit is taken as 25 Kg.

Table - 5 : Area, production and productivity of jackfruit

Number of Jack Area Production (no of fruit) Production (Kg) Productivity tree <1 acre 132 3280 82000 244.74 1 - 2.5 acre 90 2330 58250 255.00 2.5 – 5 acre 38 1140 28500 300.00 Total 260 6750 168750 259.61

Note: Productivity refers to Production/acre The table shows the area under cultivation of jack (both varikka and koozha) and its production and productivity. Production is more in sub marginal category i.e. 82000 kg and less in small ie 28500 with total production of 168750 fruit from the 260 jack trees. The overall productivity is 2S9.61, out of the total surveyed area i.e. 6473 acre. (Table : 6)

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Table - 6 : Perception of Respondents towards Table - 8 : Details of sale of jackfruit in the growing Jack trees previous years

No. of Respondents No. of Respondents Percentage Essentiality of jackfruit Major share of jack Yes 4 7 trees in a house production is wasted No 56 93 Yes 48 (80) 33 (55) Total 60 100 No 12 (20) 27 (45) The table shows that only 7 per cent of the household’s Total 60 (100) 60 (100) sale jackfruit, the remaining households was used for From the survey it can be concluded that 80 per cent of self consumption, feed for cattle, giving to neighbors and the households have the opinion that jack trees are some part are wasted. essential in a house. The table also indicates the opinion Table - 9 : Details of sale of jackfruit to the of households regarding the wastage of jackfruit. It can private dealers be inferred that 55 per cent of the households viewed that major share of jackfruit production is wasted in their Channel Respondents Quantity Price area and nearby houses. The jack tree, for generations Private dealers 4 150 15000 upon generations, has been treated as a member of every on locality household. jack tree, which, with no special care, used None 56 - - to offer varieties of nutritious and delicious food items Total 60 150 15000 Table - 7 : Marketable surplus of Households The table shows that the main customers of jackfruit No of Self Marketable Area Production are Private dealers on locality. Only four were selling households consumption surplus their jackfruit to the dealers. There are no specific agents <1 acre 32 1180 (17) 900 (19) 280 (14) for selling jackfruit. Respondents sell jackfruit to the agents who approach them. The dealers themselves 1 - 2.5 acre 20 1990 (30) 1400 (29) 590 (31) arrange for harvesting and they bears all related costs 2.5 – 5 acre 8 3580 (53) 2500 (52) 1080 (55) like transportation cost, labor cost etc. Mature jackfruit Total 60 6750 4800 1950 has more demand in the local and export market. So all the four respondents are selling jackfruit in tender form. The Table explains that 32 households belongs to the The dealers prefer varikka rather that koozha the price sub marginal category have a production of1180 number of varikka is also higher than that of koozha. In the of jackfruits in the previous year, among that 900 were previous year, they sold 150 jackfruits with Rs.10 each. used for self-consumption. Marketable surplus is high They are satisfied with the prices. in small category i e 1080 and also production is high (3580). The three categories together contribute Table - 9 : Awareness of demand of jackfruit in marketable surplus of 1950 jack fruit. Out of the total the market production of jackfruit (6750) 53 per cent is contributed No. of Respondents Percentage by small sector, 30 per cent by marginal and the Yes 12 20 remaining 17 per cent by marginal sector. The consumption and surplus are also high in Small No 48 80 category, 52 per cent and 55 per cent respectively. The Total 60 100 number of households in the small category is less (8) but they posses minimum six jack trees in their land The table shows that 80 per cent of the households are and the production is also high. From the table it can be not aware about the demand of the fruit in the market. inferred that there is a marketable surplus (Table : 8) The jackfruit was once Kerala's life-saver in the months of scarcity, but recently jackfruit is being highly under- utilized in Kerala. It's even gaining popularity outside Kerala – a single bulb of fruit sells for Rs.3 to 5 outside Kerala and abroad

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Conclusion view of the above, it is seen that there is good scope for In Kerala, jackfruit is a commonly seen fruit, once it is setting up jackfruit processing units in jackfruit growing the life saver of people but now it is become one of the areas. This will not only help the farmers to utilize the underutilized fruit. When compare with other fruits like perishable raw material but also generate more banana, the cost of production is very less and it could employment opportunities in rural areas. grow without any proper care. Post harvest value addition In Kerala Jackfruit is now a honey stream fruits for birds of jackfruit is a solution to this problem. Kerala and insects. It is grown extensively in Kerala without Agricultural University developed value addition any bodies caring. It is very popular all over India also technologies in jackfruit and they made more than 21 and is believed to be of Indian origin. Fully ripe jackfruit products out of it. Because of lack of training, supervision is sweetie and has an exotic flavor. The bulbs (the edible and guidance it is till now in the initial stage. More than flesh) contain 7.5% on dry weight basis and a fair amount 70 per cent of the people are not even heard about the of Vitamin A. The seeds are rich in Carbohydrates and different products. The fruit is very big so time consuming are used for culinary purposes. Ripe fruits are utilized in is a problem among the people. But majority of the the preparation of packaged fruits, nectar and jams. people are ready for value addition if proper assistance Unripe fruits are also used for preparations of food is given. supplements. The Krishi Vigyan Kendra’s and CFTRI There is a prospective market for these products in India Mysore has developed technologies for processing and as well as outside the country. It has a good export preserving it, which has made it possible to produce a market potential for jack fruit. There are millions of marketable product which can easily be handled, Keralites in gulf countries who knows the nutritious value packaged in attractive packing, transported and stored of jack fruits. Nobody has to teach them to buy it. In before sale.

Special issue November 2015 Page 212 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 A STUDY ON MOTIVES FOR ENTREPRENEURIAL INTENTIONS AMONG WOMEN TELECENTRE OWNERS IN KERALA

Sreejith S1

Abstract ‘Akshaya’ is an initiative of the Government of Kerala, envisioned at enhancing the spread of e-literacy, among public with added focus in rural areas, through Public Private Partnership (PPP) mode. The project was launched in November 2002. It brought to fore the enormous managerial and entrepreneurial talent that remains untapped. The moderate number of women entrepreneurs who have come forward with the choice of a career by starting an Akshaya Telecentre is a significant development to reckon with in the subject. A telecentre is a community centre that offers shared access to Information and Communication Technologies (ICT) for the purpose of community development and poverty reduction. Entrepreneurial motivation is vital in translating entrepreneurial intention into action. The study integrates Push Pull theory of motivation with entrepreneurial intentions. It identifies that, women Telecentre entrepreneurs in Kerala are more likely to be pulled than pushed into entrepreneurship. Push factor of Telecentre Entrepreneurs is derived from the variables such as flexibility in life, Economic Necessity, Test My Own Ideas and Personal Growth and Satisfying Work Relationship. Pull factor of Telecentre Entrepreneurs is derived from the variables such as Wealth Creation, Independence, Social Status, Securing Future and Personal Achievement. Keywords: Psychological Motives, Entrepreneurial Intention, Akshaya, Telecentre, Factor Analysis.

Introduction Development Index. (Planning Commission, ‘Akshaya’ is an initiative of the Government of Kerala, 2002).Akshaya project is initiated based on the report- envisioned at enhancing the spread of e-literacy, among ‘Entrepreneurship Development and Mass Employment public with added focus in rural areas through a Public Generation in IT Sector in Kerala’, a study conducted Private Partnership (PPP) programme. Akshaya by Science and Technology Development Project. The telecentres acts as the information communication project aims to bridge the digital divide starting from access point to the public, following a spread of one Panchayath (LSG) level. centre for every 1000 families living in two or three Statement of the Problem municipal or panchayath wards. The project was Telecentres need to be run like an enterprise to achieve launched in November 2002 modeled as a social financial pillar of the telecentre sustainability (Proenza, entrepreneurship. A telecentre is a community centre 2002) (Raul & Colle, 2002). National level policy that that offers shared access to Information and support deregulated and regulatory framework for Communication Technologies (ICT) for the purpose of national telecentre programme could be able to build community development and poverty reduction (UNDP - telecentre infrastructure for the nation (Jauernig, 2003). APDIP, 2007). The Government of India has envisaged It is noticeable that generating gender equity was not the National e-Governance Plan (NeGP) to set up 2, part of the objectives and the strategies behind the 50,000 telecentres in India with the objective to make Akshaya programme (Kumar & Ghatak, 2007). It is in all government services accessible to the citizen through the expansion phase of Akshaya that a quota of one- Common Service Centres (CSCs). third was set aside for recruiting women entrepreneurs Background of the Study (IT for change, 2008). The Project has brought to the The role of access to ICT in the development of a society fore the enormous managerial and entrepreneurial talent is a universally accepted fact, and with this intention of women that remains untapped. many countries in the world accepted a plan of action at The number of women who have come forward with the the World Summit on the Information Society WISS choice of an entrepreneurial career by starting an conference held in Geneva during December 2004. Kerala Akshaya e-centre is significant. The women is the most literate State in the country with a high Human entrepreneurs account for around 33% of the total

1 . Assistant Professor in Management, School of Legal Studies, CUSAT.

Special issue November 2015 Page 213 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 entrepreneurs of the project selected in the first level in statistical methods such as Factor analysis, Friedman seven districts (Akshaya Project Office, 2010). test etc were applied on the data to get the results. Entrepreneurial motivation has been reported to be a Limitations of the Study link between intention and action (Carsrud & Brännback, 2011). So knowledge about the motives that influence The research is confined to importance of ten motivation individuals to start a business is vital. The motivation to variables of entrepreneurship initiation. start a business depends on identifying the role model, Analysis & Discussion that one can emulate and who would become a source The sample size fixed for the study is 150. Respondents of inspiration and learning to other individuals. (Bandura, of the study were classified on the basis of demographic 1986). So it is required to learn about the motives of profile of the respondents. women owners of Akshaya telecentres. Profile of Respondents Objectives of the Study Demographic profile of the respondents based on their 1. To examine the women entrepreneur’s motives for age, religion, marital status, education and their major opening Akshaya telecentres source of income were considered in this study. 2. To identify the difference of importance between push Ages of the respondents were classified into three groups and pull factors among women tele centre such as below 30, 30-40 and above 40. The study entrepreneurs. considered religions such as Hindu, Christian and Islam Scope of the Study for this research paper. The study considered The study is planned to throw light on the influence of classifications of respondents such as unmarried, push pull factors among women entrepreneurs. The married and divorced marital statuses. Education-wise study is of relevance to different telecentre stake holders classification of respondents such as high school, plus and has many policy implications. Above all, the result two, degree and post graduate level also of this study may motivate women entrepreneurs to have considered. The table furnished below shows the internal retrospection to review their entrepreneurship summary of the respondent’s profile. intentions. Further this state of mind of people who wish Dimensions of motivations to create a new firm is of greater influence. The study tries to identify entrepreneur’s perception Research Methodology regarding the stage of psychological hierarchy they Descriptive research design is used for carrying out the belong to. Dimensions of motivations were measured study. The researcher has collected both Primary and using ten statements which quizzed on their drives secondary data for the study. A preliminary study and behind commencing the business. The respondents extensive literature review have been carried out. The were asked to rate these factors in a 5 point scale in the scope of World Wide Web for collecting data was order of importance. Further, these ratings were converted exploited. Secondary data regarding Akshaya to rank Friedman test method was used to ascertain Telecentres in Kerala was collected from Akshaya State the rank of psychological motives. Project Office Thiruvananthapuram. Primary data was Table - 1 : Ranking of Psychological Motives collected from the Akshaya Entrepreneurs (respondents), using a pre-tested questionnaire. A sample size of 150 Item Mean Rank was conveniently fixed for the study. Personal Growth 6.65 Type of Data Social Status 6.11 Both Primary and Secondary data were used for this study. The primary data were derived from the answers Independence 6.03 given by the respondents in the self-administered Satisfying Work Relationship 5.87 questionnaire prepared by the researcher. The data Personal Achievement 5.82 derived from research studies and literatures have been included in this study. Test my Own Ideas 5.70 Data Analysis Flexibility in Life 5.59 The questions and responses were coded and entered Securing Future 4.34 in the computer using Excel software. Wealth Creation 4.20 Required analysis was done with the aid of Statistical Economic Necessity 3.62 Package for Social Sciences 21.0 Version. Certain

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Test Statistics - Friedman Test the new generation (Giacomin, Guyot, Janssen, & Lohest). N 350 Factor 1 derived from the analysis consist of variables Chi-Square 366.365 such as flexibility in life, Economic Necessity, Test My Own Ideas and Personal Growth and Satisfying Work Df 9 Relationship. So a sum of all these can be called as Asymp. Sig. .000 Push factors of Telecentre Entrepreneurs.

It is evident from the table 1 that the biggest driver is Table - 2 : Rotated Component Matrixa personal growth, closely in pursuit with social status, Variables Push Factor Pull Factor followed by Independence, personal achievement, flexibility in life, satisfying work relationships, testing Flexibility in Life .806 own ideas, securing future, wealth creation, economic Economic Necessity .759 necessity, in that order. In the study of entrepreneurship, Test my Own Ideas .717 one recurring area of interest is what motivates individuals to become entrepreneurs (Zimmerman & Chu, 2013). Personal Growth .669 Motives provide insight into the entrepreneur’s intentions Satisfying Work .567 and problems affect the start up and growth of a business Relationship (Yaclin & Kappu, 2008). Factors of entrepreneurial Independence .731 motivation (P.Dubini, 1988) is related to the following Social Status .680 a. Achievement- It is related to sense of individualism, accomplishment and development. Securing Future .608 b. Philanthropy – It is related to welfare of the individual, Wealth Creation .502 family or community. Personal Achievement .474 c. Status – It is related to recognition, prestige and respect. Source: Primary Data, Extraction Method: Principal Component Analysis. d. Materialism – It is related to economic consideration Rotation Method: Varimax with Kaiser Normalization. a. e. Escape – It is related to escape from an undesirable Rotation converged in 3 iterations. condition As with push motivation, pull motivation may come in f. Freedom – It is related to flexibility of work, time different forms distinguish between three pull motivations: and collaboration. market opportunity, social status and profit (Giacomin, g. Role Model – It is related to continuing family Guyot, Janssen, & Lohest). There evidence for four tradition motivational constructs such as recognition, Push Pull Theory among Women Entrepreneurs independence, learning and roles. Which provide evidence of a multitude of pull motivations, including the The distinction between push and pull factors is also need for approval, independence, personal development, implicitly present in the Model of the Entrepreneurial improved welfare and wealth, and following role models Event arguing that the act of starting up a business is (Shane, Kolvereid, & Westhead, 1991). In spite of the dependent upon a change that occurs in the life of an role played by each of the different motives in the individual, i.e., a displacement (Shapero and Sokol, explanation of entrepreneurship, it has been found that 1982). Push factors mean those influences, which push the wish to be independent is the dominant factor individuals toward entrepreneurship. Pull factors mean explaining new venture creation (Scheinberg & influences, which pull people towards entrepreneurship MacMillan, 1988). Gender differences were found in the In terms of push motivation, the first argument was that incidence of motivations, women were more influenced unemployed individuals or individuals with low prospects by a desire for independence (Kirkwood, 2009). for wage-employment may become self-employed to earn Following are the derived variables of factor 2 during the a living (Oxenfeldt, 1943). The effect of unemployment, factor analysis, Wealth Creation, Independence, Social lowering the opportunity costs of self-employment, Status, Securing Future and Personal Achievement. It thereby driving individuals to start their own business, can named as pull factors of telecentre entrepreneurs is often referred to as the push effect of unemployment. Result of the t test is shown in the table below. It In addition to unemployment, Giacomin et al. (2007) compares the importance of push and pull factors among mention the push motivations of autonomy and family telecentre entrepreneurs. The maximum score for each pressure, for example in case of a business transfer to factor were set as 25 for this analysis.

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Table - 3 : Result- t test

Entrepreneurial N Mean Std. Deviation Std. Error Mean t Sig. (2-tailed) Motivations Push 156 10.3846 2.52078 .20182 -32.072 .000 Pull 156 23.7115 4.53660 .36322

Source: Primary Data

Individuals are more likely to be pulled than pushed into entrepreneurship (Birley & Westhead, 1994). The table no 3 shows the level of importance of women entrepreneurs to initiate Akshaya Telecentres in Kerala. The result also shows that their pull motivational factors are influenced more than push factors. The mean score for pull factors is 23.71 with a standard deviation of 4.53, whereas the score for push factors is 10.38 with a standard deviation of 10.38. The t test result shows that the scores are statistically different at 95 % Confidence Level. Major Findings It is evident from the above study that 94% of the telecentres are in the form of sole proprietorship. Majority of the centres (40%) are established in between 2006-2009 followed by 2002 to 2005 and 2013-2013 i.e 28% each. 50% of the women Akshaya entrepreneurs used bank loan as their primary source of capital. On the other hand 44% of them have used their personal assets. 48% of the telecentres raised 3-5 lakh rupees for the capital of the business followed by 1-3 lakh (30%). It is worth to note that 49% of women telecentre owners are acting as financial controller. There are nominal representations of operator and manager roles. But 27% of them have responded that they are not representing any above roles. They may be acted as a supporting staff or act as a dummy entrepreneur on behalf of others. The biggest motivation driver for Telecentre entrepreneurship among women in Kerala is personal growth, closely in pursuit with social status, followed by Independence, personal achievement, flexibility in life, satisfying work relationships, testing own ideas, securing future, wealth creation, economic necessity, in that order. The study integrates Push Pull theory of motivation with entrepreneurial intentions. It identifies that, women Telecentre entrepreneurs in Kerala are more likely to be pulled than pushed into entrepreneurship. Push factor of Telecentre Entrepreneurs is derived from the variables such as flexibility in life, Economic Necessity, Test My Own Ideas and Personal Growth and Satisfying Work Relationship. Push factor of Telecentre Entrepreneurs is derived from the variables such as Wealth Creation, Independence, Social Status, Securing Future and Personal Achievement. Conclusion The moderate number of women entrepreneurs who have come forward with the choice of a career by starting an Akshaya Telecentre is a significant development to reckon with in the subject. Entrepreneurial motivation is vital in translating entrepreneurial intention into action. The study integrates Push Pull theory of motivation with entrepreneurial intentions. It identifies that, women Telecentre entrepreneurs in Kerala are more likely to be pulled than pushed into entrepreneurship. Push factor of Telecentre Entrepreneurs is derived from the variables such as flexibility in life, Economic Necessity, Test My Own Ideas and Personal Growth and Satisfying Work Relationship. Push factor of Telecentre Entrepreneurs is derived from the variables such as Wealth Creation, Independence, Social Status, Securing Future and Personal Achievement. Reference • Akshaya Project Office. (2010). Achievements. Retrieved January 2015, from Akshaya Project: http:// www.akshaya.kerala.gov.in/index.php/achievements • Bandura, A. (1986). Social foundation of thought and action-A social cognitive theory. Englewood Cliffs. New Jersey:: Prentice-Hall. • Birley, S., & Westhead, P. (1994). A taxomy of business start-up reasons and their impact on firm growth and size. Journal of Business , 7-31. • Carsrud, A., & Brännback, M. (2011). Entrepreneurial motivations: What do we still need to know? Journalof Small Business Management , 9-26. • Giacomin, ,. O., Guyot, Janssen, & Lohest. Novice creators: personal identity and push pull dynamics. Louvain School of Management. • IT for change. (2008). Retrieved January 2015, from IT for Change: http://www.itforchange.net/sites/default/files/ ITfC/E-Krishi.pdf

Special issue November 2015 Page 216 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 A STUDY ON QUALITY OF WORKLIFE AT INDIA INFOLINE, COCHIN

S. Soumya1 Dr. N. Ramkumar2

Abstract Quality of Work Life is becoming an increasingly popular concept in recent times. It basically talks about the methods in which an organization can ensure the holistic well-being of an employee instead of just focusing on work-related aspects. It is a fact that an individual’s life can’t be compartmentalized and any disturbance on the personal front will affect his/her professional life and vice-versa. Therefore, organizations have started to focus on the overall development and happiness of the employee and reducing his/her stress levels without jeopardizing the economic health of the company. The major objective was to gain an insight into the Quality of Work Life at IIFL. The secondary objective was to study is the perception of employees in overall development, employee satisfaction with the safety facilities and employee’s perception in participation in decision making process. Census study is used which includes the entire population of 50 employees of IIFL, M G Road Branch, Ernakulam was selected for the study. A structured questionnaire was designed to collect information. The collected using the questionnaire was analyzed and interpretations and suggestions was given based on the results of analysis. Categorization was done based on different demographic factor and mean perception score for different groups were found out. The hypotheses developed for the study were tested using t-test and ANOVA. The project concluded that employees of IIFL have a better quality of work Life. And the employees are satisfied with the safety facilities and their role in decision making.

Introduction telecommuting etc., are being adopted by these The phrase “quality of work life” has been used to evoke organizations. Technological advances further help a broad range of working conditions and the related organizations to implement these programs successfully. aspirations and expectations of employees. It also Organizations are enjoying the fruits of implementing encompasses a wide range of programs, techniques, QWL programs in the form of increased productivity, and and theories that have been developed in an endeavor to an efficient, satisfied, and committed workforce which reconcile the twin goals of efficiency and an improved aims to achieve organizational objectives. Quality of social environment in modern workplaces. Quality of work Working Life is a term that had been used to describe life (QWL) is viewed as an alternative to the control the broader job-related experience an individual. Elizur approach of managing people. The QWL approach and Shye, (1990) said that quality of work performance considers people as an ‘asset’ to the organization rather is affected by Quality of Life as well as Quality of working than as ‘costs’. It believes that people perform better life. However, it will be argued here that the specific when they are allowed to participate in managing their attention to work-related aspects of quality of life is valid. work and make decisions. Quality of working life remains relatively unexplored and unexplained. A clearer understanding of the inter- This approach motivates people by satisfying not only relationship of the various facets of quality of working their economic needs but also their social and life offers the opportunity for improved analysis of cause psychological ones. To satisfy the new generation and effect in the workplace. This consideration of Quality workforce, organizations need to concentrate on job of working Life as the greater context for various factors designs and organization of work. Further, today’s in the workplace, such as job satisfaction and stress, workforce is realizing the importance of relationships and may offer opportunity for more cost-effective interventions is trying to strike a balance between career and personal in the workplace. lives. Successful organizations support and provide facilities to their people to help them to balance the Statement of the Problem scales. In this process, organizations are coming up IIFL is a share broking firm, so the organization has a with new and innovative ideas to improve the quality of hectic work environment. This study focused on gaining work and quality of work life of every individual in the an insight into the quality of work life at India Infoline Ltd organization. Various programs like time, alternative in M G Road branch Ernakulam, how well the work schedules, compressed work weeks, management maintaining the works, working conditions,

1 . Assistant Professor, Sree Narayana Gurukulam College of Engineering 2 . Assistant Professor, PSG Institute of Management. Coimbatore.

Special issue November 2015 Page 217 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 safety, rewards and other facilities to the employees to life. Hence QWL may be considered as a set of new do the job in effective manner. labor problems and have gained recognition as important determinants of worker satisfaction and productivity in Primary Objective many societies during the period of their sustained To gain an insight into the Quality of Work Life at India economic growth. Info Private Limited, M G Road Branch, Ernakulum QWL implies a nice and safe work environment. But Secondary Objective people want to feel respected at work for what they do To understand the perception of Quality of Work Life in and who they are. They want good communications with the overall development of an employee. superiors, fellow workers, and customers, other than being part of a team. Above all, people need to feel valued To understand employee satisfaction with the safety for their skills, knowledge and their participation in the facilities provided by the organization. creative improvement process. Without this, people can To study the perception of employee on their participation be comparatively well paid and still be dissatisfied with in decision making process. the quality of their work life. The major catalyst for Scope of Study research on quality of work life has been the influx of The study is limited to India Infoline Ltd, M G Road women, including those with young children and other Branch, Ernakulam on quality of work life. family obligations into the labor force. This trend began to escalate in the 1960s where new technology was Literature Review predicted to transform people’s lives and produce a Quality of work life refers to the favorableness of a total leisure age of shorter working weeks. Women were job environment for people. QWL programs are another beginning to enter male-dominated careers, resulting in way in which organizations recognize their responsibility phenomena such as dual-career couples and the equity to develop jobs and working conditions that are excellent of gender roles. However, the predicted reduction in for people as well as for economic health of the working hours did not come about. Instead, a period of organization. industrial strife, conflict, and retrenchment ensued in the 1970s. Factors affecting quality of work life: Research explored antecedents and consequences of The factors affecting quality of work life are job work-family conflict and stress, recognizing the satisfaction, pay, people, health conditions, career multiplicity of variables affecting individual well-being. prospects, management style, work environment, stress Increasingly, experiences in work and family not only level at work, etc. spill over between domains but also cross over to affect The notion “quality of work life” (QWL) is closely related other family members. Therefore, quality of work to the “Quality of life” concept. Both emerged relatively experience rather than work per se became the focus of recently in the industrialized nations where English was attention. Research questions of the 1970s and 1980s the primary language. Parallel concept such as on the impact of maternal employment of children, initially “humanization of work” is also used. In France and other based on assumptions about women’s roles and young French-speaking countries, the usual expression is children’s needs were being replaced by concern about “improvement of working condition”, while in the sociality the impact on children and other family members of counties the established term is “workers protection”. parents’ experiences of pressurized work. In Scandinavia, the central concepts are “working The period from the mid 1990s see the context of environment” and “democratization of the workplace”. globalization and increasingly sophisticated technology, In its broadest usage, QWL simply means the sum total restructuring of organizations and non-permanent work of “values”, material and non-material, attained by a in most advanced industrialized societies towards worker through his life as a salary earner. Thus it includes flexible workforces. The consequences of this changing aspects of work-related life such as wages and hours, workplace are the anxieties and other problems that work environment, benefits and services, career accompany feelings of job insecurity. Many workers are prospects and human relations, which could possibly spending more time in the workplace in response to job be relevant to worker satisfaction and motivation. In the insecurity, workplace demands, perceived career needs, narrowest sense, the QWL may refer to the positive financial pressures, and so forth. Without job security, “value” level of a given job as it affects the worker. Such employees are less committed to their organizations interpretation carries with it an implied claim that and may feel freer to move to other jobs. To a large extent, improvements in work organization and job content in they reflect increased workloads and unrealistic particular should receive special consideration for deadlines as a consequence of downsizing. The rise in enhancing the “value” level of the individual’s working working hours has been greatest among members of

Special issue November 2015 Page 218 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 dual-earner and especially professional dual-career develop human capabilities, opportunity for continued families, and time pressures from work are particularly growth and security, social integration in the work intense during the life-cycle stage including the organization, constitutionalism in the work organization childrearing years which suggest pressurized family (right to privacy, free speech and equitable treatment lives. In addition, boundaries between work and non-work and due process, work and total life space, social time have become more blurred as organizations become relevance of work life increasingly virtual and more people work at or from The Benefits of QWL Initiative home for all or part of the week using information and communication technologies (Lewis & Cooper, Without Employees trust that with the presence of QWL initiatives doubt there are situations where there exists they feel safe, relatively well satisfied and able to grow opportunities for flexibility and autonomy. and thus can develop as human beings. They believe that QWL enhances their dignity through job satisfaction Quality of work life is gaining importance due to certain and humanizing work by assigning meaningful jobs, reasons, Firstly, newly acquired economic maturity ensuring job security, making provisions for adequate appears to be one of the principal causes of the increased pay and benefits, providing safe and healthy working concern for improving the QWL. Secondly, many of the conditions, giving opportunities to develop human current problems are not the result of deteriorating social capacity, ensuring growth and security, social integration, and working conditions, but rather, a consequence of constitutionalism, getting freedom to self-expression and heightened worker expectations and aspirations. thus, help to increase individual productivity that supports Moreover, a number of aspects traditionally considered to achieve organizational effectiveness. That’s why Casio to be important are gradually giving way to new concerns. (1992) aptly defines QWL “in terms of employees’ Thirdly, new problems affecting the QWL fall into several perceptions of their physical and mental well-being”. categories. Some have surfaced as a result of new technological and social developments and others QWL initiatives are equally beneficial for the employees. represent changing and accelerating concerns with QWL positively nurtures a more flexible, loyal, and regard to their compatibility. motivated workforce, which is essential in determining the company’s competitiveness leadership. Positive Measuring the Quality of Work Life results of QWL reduced absenteeism, lower turnover, In order to measure relevant issues of interest or and improved job satisfaction Largely, it appears that importance organizations have long used surveys of the main concerns of an effective QWL program are employees. Information gathered from such surveys is improved working conditions mainly from an employee’s typically used to identify problems, strengths and perspective and greater organizational effectiveness weaknesses within a particular organization or with mainly from an employer’s perspective Predicting or identifiable groups within that organization. studying QWL variables depends on approaches adopted The concept of Quality of Work Life, however, goes to improve QWL situation at the organizational level. beyond measuring employee’s experiences within a Approaches to Quality of Work Life particular organization and encompasses a wider value Three different approaches regarding QWL are common set that is specific to individuals. Therefore, measuring in the literature of human resource management (Krahn issues that the specific or of importance to an and Lowe, 1998; Crompton and Harris, 1998; Gallie, organization, risks overlooking issues that are important 1990; Rose, 1994). In the era of scientific management, to individuals working in the organization. Quality of Work QWL was based on extrinsic traits of jobs: salaries, Life is a dynamic multidimensional construct that safety and hygiene, and other tangible benefits of the currently includes such concepts as job security, reward workplace. The human relations approach stressed that, systems, training and career advancement opportunities, while extrinsic rewards are important, intrinsic traits of and participation in decision making. As such Quality of job: autonomy, challenges and task contents, are key Work Life has been defined as the workplace strategies, predictors of productivity and efficiency. A third approach- operations and environment that promote and maintain orientation to work-suggested that a focus on extrinsic employee satisfaction with an aim to improving working or intrinsic reward is contingent on the person. However, conditions for employees and organizational effectiveness the success of QWL initiatives depends on openness for employers. and trust, information management, organizational Richard Walton’s article in the Davis and Cherns culture, partnership between management and workers collection on this subject proposed eight conceptual (Casio, 1992). Equally important, responsibility of categories relating to the quality of working life, these improving QWL is concerned, it should be jointly shared being adequate and fair compensation, safe and healthy by employees, owners, union leaders and governments working conditions, immediate opportunity to use and through legislations. The role of these stakeholders is

Special issue November 2015 Page 219 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 most vital in protecting rights and interests of the workers the work itself. He suggested that a number of other and employees. Very few authors have mentioned about aspects could be added, including; individual power, the role of the state in protection of QWL rights at the employee participation in the management, fairness and time of liberalization and globalization. Although with the equity, social support, use of one’s present skills, self increasing impact of liberalization and deregulation of development, a meaningful future at work, social economy, organizations in developed and developing are relevance of the work or product, effect on extra work demanding for more autonomy in labor related decisions, activities. Taylor suggested that relevant Quality of provisions and mechanism of implementing QWL working life concepts may vary according to organization initiatives should come from the labor laws. and employee group. In 1999 International Labor Organization (ILO) put forward Warr and colleagues (1979)(7), in an investigation of a new agenda of “decent work” defined as decent work Quality of working life, considered a range of apparently deficits caused by a gap between the world that we work relevant factors, including work involvement, intrinsic job and in and the hopes that people have for a better life motivation, higher order need strength, perceived intrinsic (ILO, 2001) in order “to improve the situation of human job characteristics, job satisfaction, life satisfaction, beings in the world of work (ILO, 1993, 3). From the happiness, and self-rated anxiety. They discussed a perspective of decent work, the “gaps” which exist range of correlations derived from their work, such as between people’s aspirations regarding their work and those between work involvement and job satisfaction, their current work situations can be viewed as “decent intrinsic job motivation and job satisfaction, and perceived work deficits”. Although ‘decent work’ movement is intrinsic job characteristics and job satisfaction. In recently development concept that is different from the particular, Warr et al. found evidence for a moderate QWL initiatives it has not left the main issue of labor association between total job satisfaction and total life rights problem arising due to the gap in the aspirations satisfaction and happiness, with a less strong, but and real work situation at our workplaces. In other words, significant association with self-rated anxiety. the issues of QWL are also considered while framing Thus, whilst some authors have emphasized the “decent work” concept. workplace aspects in Quality of working life, others have Human resource departments are involved with efforts identified the relevance of personality factors, to improve productivity through changes in employee psychological well being, and broader concepts of relations. QWL means having good supervision, good happiness and life satisfaction. Factors more obviously working conditions, good pay and benefits and an and directly affecting work has, however, served as the interesting, challenging and rewarding job. High QWL is main focus of attention, as researchers have tried to sought through an employee relations philosophy that tease out the important influences on Quality of working encourages the use of QWL efforts, which are systematic life in the workplace. attempts by an organization to give workers greater Lawler (1982) defines QWL in terms of job characteristics opportunities to affect their jobs and their contributions and work conditions. He highlights that the core dimension to the organization’s overall effectiveness. That is, of the entire QWL in the organization is to improve proactive human resource department finds ways to employees’ well being and productivity. The most empower employees so that they draw on their “brains common interaction that relates to improvement of and wits,” usually by getting the employees more involved employees’ well-being and productivity is the design of in the decision-making process. the job. Job design that is able to provide higher employee According to Harrison, “Quality of Work Life (QWL) is satisfaction is expected to be more productive. However, the degree to which work in an organization contributes he accepted the fact that QWL is complex, because it to material and psychological well being of its members.” comprises physical and mental well being of employees. Hackman and Oldham (1976) (5) drew attention to what Loscocco and Roschelle (1991) suggest that there are they described as psychological growth needs as two dominant theoretical approaches in the QWL relevant to the consideration of Quality of working life. literature, namely need satisfaction and spillover. In the Several such needs were identified; Skill variety, Task original report to be reported in a later chapter of the Identity, Task significance, Autonomy and Feedback. research report, QWL will be based on these two They suggested that such needs have to be addressed theoretical perspectives. if employees are to experience high quality of working QWL is important as there is evidence showing that a life. happy employee is a productive, dedicated and loyal Taylor (1979)(6) more pragmatically identified the employee (Greenhaus et al., 1987). Research by Danna essential components of Quality of working life as; basic and Griffin (1999) shows that, the consequences of low extrinsic job factors of wages, hours and working levels of health and well-being includes absenteeism, conditions, and the intrinsic job notions of the nature of reduced productivity and efficiency, reduced service

Special issue November 2015 Page 220 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 quality, etc. Therefore, it can be argued that QWL may to the organization’s overall effectiveness. That is, a have a significant impact on employee behaviour, such proactive human resource department finds ways to as job satisfaction, performance, intention to quit, and empower employees so that they draw on their “brains turnover, to name a few. and wits,” usually by getting the employees more involved In the same Heskett, Sasser and Schlesinger (1997) in the decision-making process. define QWL as the feelings that employees have towards According to Guna Seelan Rethinam, Maimunah QWL their jobs, colleagues and organizations that ignite a is a multi-dimensional construct, made up of a number chain leading to the organizations’ growth and of interrelated factors that need careful consideration to profitability. A good feeling towards their job means the conceptualize and measure. It is associated with job employees feel happy doing work which will lead to a satisfaction, job involvement, motivation, productivity, productive work environment. This definition provides an health, safety and well-being, job security, competence insight that the satisfying work environment is development and balance between work and non work considered to provide better QWL. life. There is no formal definition of quality of work life (QWL), To summarize, QWL is viewed as a wide-ranging industrial psychologists and management scholars agree concept, which includes adequate and fair remuneration, in general that QWL is a construct that deals with the safe and healthy working conditions and social integration well-being of employees (Danna and Griffin, 1999). One in the work organization that enables an individual to might argue at this point that QWL is the same as job develop and use all his or her capacities. Most of the satisfaction, however it has been stated that QWL differs definitions aim at achieving the effective work environment from job satisfaction in that job satisfaction is construed that meets with the organizational and personal needs as one of the many outcomes of QWL (Greenhaus, and values that promote health, well being, job security, Bedian and Mossholder, 1987). It was also stated that job satisfaction, competency development and balance QWL does not only affect job satisfaction but also between work and non-work life. The definitions also satisfaction in other life domains such as family life, emphasize the good feeling perceived from the interaction leisure life, social life, financial life and so on. Therefore, between the individuals and the work environment. there is evidence to say that the focus of QWL goes Research Methodology beyond job satisfaction by encompassing the effect in non-work life domains, and satisfaction with overall life, The type of research design used in the project was personal happiness, and subjective well-being. Case Study based Descriptive research. The population consisted of the employees working in the M G Road Human resource departments are involved with efforts branch of IIFL, M G Road branch, Ernakulam. The to improve productivity through changes in employee sample consists of the 50 employees working at IIFL. relations. QWL means having good supervision, good The Sampling frame consists of the list of all 50 working conditions, good pay and benefits and an employees working at IIFL, M G Road branch, interesting, challenging and rewarding job. High QWL is Ernakulam. The sampling units were the employees of sought through an employee relations philosophy that IIFL, M G Road, Ernakulam. Census survey was used encourages the use of QWL efforts, which are systematic for the study which covers all the employees of IIFL, M attempts by an organization to give workers greater G Road, Ernakulam. opportunities to affect their jobs and their contributions to the organization’s overall effectiveness. That is, a The data was collected using a structured questionnaire. proactive human resource department finds ways to Questionnaire consisted of questions to capture the empower employees so that they draw on their “brains demographic details of the respondents and questions and wits,” usually by getting the employees more involved with 5 point likert scale to capture the perception of the in the decision-making process. Human resource respondents. departments are involved with efforts to improve Both the Primary and Secondary data collection method productivity through changes in employee relations. QWL were used in the project. Primary data was collected by means having good supervision, good working means of a Structured Questionnaire, and used for the conditions, good pay and benefits and an interesting, analysis. Secondary source was mainly used for challenging and rewarding job. High QWL is sought theoretical background and literature review. through an employee relations philosophy that Categorization was done based on the demographic data. encourages the use of QWL efforts, which are systematic Mean perception score for different questions was attempts by an organization to give workers greater calculated. opportunities to affect their jobs and their contributions

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Data Analysis, Findings and Interpretation The mean perception scores for all the items are above Demographic Categorization 3.0, which shows that the quality of work life of the Age wise classification employees of India Info line, Kochi is generally good. 50% of the respondents come under the age group of Suggestions 30-40 and 46% comes in between 20-30. 4% The mean perception for all the items that measure respondents were in 40-50 age groups. perception is above 3.00. this implies that the quality of Gender wise classification work life prevailing in the organization is good. However, the following points can be considered: 56% were males and 44% were females. The management can reinforce the support extended to Income wise classification its employees for maintaining a good working 4 % respondents had monthly salary below 10000, 84% environment so as to keep the employees motivated and respondents had in the range 10000-30000, 4 % of the productive. respondents had in the range 30000- 40000, and 4% of The management can periodically benchmark its HR the respondents were having salary above 40000. practices pertaining to quality of work life and make any Mean Perception Scores changes as required to keep up with other organizations The following table shows the item wise mean perception in the industry. This will help the management to reduce scores. turnover. Table 5 4 Item wise Mean Perception Scores The employees generally feel that new learning is required for their job. This is particularly important for the Table - 1 organization since it is a financial organization and it Item Mean needs to keep pace with the industry and technology. My job requires learning new things. 4.24 The management can impart training on the changes in the industry and technology so as to equip the The job often demands to use my skills 4.18 employees to meet the changing needs of the industry. and abilities Employees have stated that they welcome challenging 4.20 The working conditions of job allows to be assignments. So, to stimulate the intellect of the more productive employees, management can introduce incentives for I receive enough help and equipment to get 4.18 continual improvements in work, outsource routine works the job done and entrust the employees with higher job responsibilities In job, I often take part with superiors in 4.08 that offer challenge to the employees. making decisions The employees have stated that they are involved in the The suggestions given by me are always 4.04 decision making process and are given freedom to decide accepted by the superior on their way of work. This means that they are empowered. The management can continue to involve The safety of workers is a high priority for 4.02 the management the employees in taking strategic decisions which will increase the morale of employees and make them more Employees and management work 4.14 engaged with the organization. together to ensure the safest possible working conditions The management also takes care of the well being of the employees by ensuring safe working conditions. The The organization is run in a smooth and 4.20 management can, however, go a step ahead and effective manner introduce health schemes which will motivate the I have enough freedom to decide how to do 4.10 employees to stay with the organization. The my work management can also consider providing the employees The career progression followed in this 3.80 with a flat-panel liquid crystal display (LCD), like those organization is at par with that of the on laptop computers which it reduces the strain on eyes. industry There is a difference among the income groups in the Compensation paid in this organization is 3.72 perception that the compensation is commensurate with commensurate to the responsibilities the responsibilities shouldered. The persons with shouldered monthly income less than Rs. 10,000 have disagreed to I can give full attention to my work 4.12 the statement with a mean score of 2.00. The management should take steps to identify the cause of I welcome challenging assignments 4.02 such a perception and make necessary changes in the Source: Primary Data

Special issue November 2015 Page 222 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 compensation structure in tune to the industry Markham, Lyle Grant, 2010, Quality of work life as standards. This will motivate the employees to stay with predictor of employees’ mental health, In fulfilment of the organization. the requirements for the degree Magister Artium in the Faculty of Humanities, Department of Industrial Conclusion Psychology The result of this study shows that there is a high level Myanard Riveral Bagtosos, Quality of Work Life: A of satisfaction among the employees regarding the Review of Literature, DLSU Business and Economics Quality of Work life. The factors determining the Review, Volume 20, Issue No. 2 (2011), Article No. 26 satisfaction with the quality of work life in the organization were “Adequate Income & Fair Orpen, C., 1981, The conceptualization of quality of Compensation, Safe & healthy working conditions , working life, Perspectives in Industrial Psychology, 7, Opportunities to use & develop human capacity, 36- 69. Opportunity for career growth, all these factors are Rethinam, Guna Seelan, Maimunah, 2008, Constructs positively correlated with the quality of work life in IIFL. of Quality of Work Life: A Perspective of Information and In this study the primary objective is that to gain an Technology Professionals, European Journal of Social insight into the quality of work life in IIFL. The analysis Sciences – Vol. 7, No. 1, PP: 58-70. and findings shows that the organization is having a good Rice, R. W., 1985, Organizational Work and the Quality of Work Life. Perceived Quality of Life towards a Conceptual Model, The secondary objectives is also satisfied that the Academy of Management Review, April, Col. 10(2), pp components of Quality of Work Life like compensation 296-310. and safety, employee consideration in decision making Robbins, S., Millett, B., Caiocoppe, R. and Waters- is also maintained in IIFL. The participation of employees Marsh, T. (1998). Organizational Behaviour. in decision making, and the employee’s career S. Jain, Quality of Work life development through new learning was also achieved by the firm. The working condition, safety, and Rose, R., Beh, L., Uli, J., & Idris, K., 2006, An analysis participation of the employees in decision making, all of quality of work life and career related variables. these factors improve Quality of work life in IIFL. Overall American Journal of Applied Sciences, 3(2), 2151-2159. the quality of work life of India Infoline is good. Saraji, G Nasl, Dargahi, H, 2006, Study of Quality of Work Life (QWL), Iranian Journal of Public Health, Vol. Bibliography 35, No. 4, pp.8-14. Antle, Beverley, J., 2006, OASW Quality of Work Life Subrahmanian, Mu, Anjani, N., 2010, Constructs of Survey, final report of Ontario Association of Social Quality of Work Life– A Perspective of Textile and Workers Engineering Employees, Asian journal of management Bowditch, James L. and Anthony F. Buono, 2005, A research, 299-307. Primer on Organizational Behavior, John Wiley and Son, T S Nanjundeswaraswamy , Dr Swamy D R., A literature Inc. Hoboken, New Jersey review on quality of work life and leadership styles, Dr. Gupta Meenakshi, Factor Credentials Boosting International Journal of Engineering Research and Quality Of Work Life of BSNL Employees In Jammu Applications (IJERA) ISSN: 2248-9622, Vol. 2, Issue 3, Region, Asia Pacific Journal of Research in Business May-Jun 2012, pp.1053-1059 Management, Year : 2011, Volume : 2, Issue : 1, pp: 79 Walton, Richard, E., 1974, Improving the quality of work - 89, Print ISSN : 2229-4104. life, Harvard Business Review. Jazani, Nasrin, 1996, Human resource management, 1st edition, Tehran, Ney publication.

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STRATEGIC STUDY ON CONTENT ANALYSIS OF LIBRARY WEBSITES WITH SPECIAL REFERENCE TO CENTRAL UNIVERSITIES IN SOUTH INDIA

Sariga T. R.1 Lakshmi T R2

Abstract This study is carried out to analyze the content of library websites of central universities in South India. The major objective of the study was to find out whether the libraries have a direct link to their electronic resources on their WebPages, to know about the accuracy, currency, accessibility, and user friendliness and to determine the library services and facilities offered through library websites. There are six websites of central university in South India are selected for the study. A checklist was developed as the main tool for data collection and Microsoft Excel was used as the tool for data analysis. The study shows that majority of the central university library website provide the information about mission statement, working hours, contact information, staff directory, copy right. A good number of libraries have their websites with the details of newspapers, dissertations. A few library website indicate the information about DDS, reprographic services, reservation, browsing facility for visually challenged, and exhibition. The study indicates that the usage of web 2.0 technology is very less in library website. Key words: central University, library websites, South India.

Introduction visibility and accessibility of the top rank and the bottom Information technology is rapidly changing the whole rank universities websites. There are 30 samples were world creating new challenges and opportunities. As drawn from the top rank and the bottom rank universities libraries move forward in to the digital age, our web based on the times higher education world university presence has become increasingly important to meet rankings (2013). In this study Alexia is used to study the needs of our users. Libraries are using web the visibility of the universities websites. Eval access environment to provide high quality information for their software was used to analysis the selected websites. users mostly in digital format. Libraries have always tried This study concluded that those top rank universities to use the most recent available technologies for websites are more visible and accessible as compared information collection and preservation and adopted to the other websites. Jange (2014) conducted an websites in this era of technology boom. Recent years evaluative study on the library websites of universities of have seen the emergence of websites as an ideal medium Karnataka state. The objectives of the study were to through which knowledge and information can be determine the basic information about the library disseminated very effectively to every nook and corners pertaining to books, journals and other information of the world. (Shukla, 2010). Library website requires an services, to determine the type of information content, interface that can accommodate the different needs, to evaluate the performance of the library websites with scholarly disciplines and capabilities of a number and respect to performance grading and load time of website varied users and it should be the best combination of and to understand whether the library website makes properly managed resources and the users Need. provision for searching information. The study attempts Website is considered as the most popular medium to to evaluate the library websites of universities of catch the recent updates therefore, every institution have Karnataka comprising of 16 General State Universities its own website that is used for imparting valuable including a Central University and 8 subject based information to the targeted users. universities of Karnataka state. The major findings of the study were that only library of Agricultural Science Literature Review library, Dharwad provided search facility to search the Literature review gives an overview of the studies done information within its website; performance grading of previously and published by the various authors in the library websites has been found to be high in Mysore journals both in hard as well as soft copies. Baka and University library and none of the university library Nur (2015) made a web metric study of world class websites under study had made use of any web2.0 on universities websites. The objective of the study was to their websites. determine, whether there are difference in terms of

1. PG (MLISc), Department of library and information science, Kannur University, Thalassery . 2. Librarian , Sree Narayana Gurukulam College of Engineering, Kadayiruppu, Kolenchery

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Objectives of the study The study aims to determine the information content on the library websites of central universities in Kerala, Karnataka, Tamil Nadu, Pondicherry, Telangana. • To identify the content and coverage of the study. • To find out whether the libraries have a direct link to their electronic resources on their WebPages. • To know about the accuracy, currency, accessibility, and user friendliness. • To determine the library services and facilities offered through library websites. Scope and limitations of the study The scope of the study lies in the fact that library is the heart of any university that recognizes the intellectual life and scholarship of academia and researchers. The study attempts to evaluate the contents of library websites of Central Universities in South India and its contribution to the global knowledge base. The result of this study will help to illustrate the overall content, coverage and the features of library websites in Indian universities. The present study limited to central universities in south India. There are 8 central universities in South India. One central university of Tamil Nadu and Telangana do not have library website. Therefore, this study examined the websites of 6 central universities in South India. More over time also found limited as number of sites is move, so that the content also limited to general information, collection and services. But the investigator has made an attempt to make the study as precise and objectives as possible with provided time. Methodology For the present study the investigator developed a check list for the evaluation of website in consultation with in the supervising teacher for the analysis of the website. In preparation the checklist similar studies were consulted as a first step. Different websites was observed and related literature are analysed. The investigator selected 6 university library websites for the study on the basis of content available on the websites. The checklist included general information, information about library collection, information on e-resources, information about library services, and linking pattern for e-resources. This checklist was used to record the features present on each website. It was extended, as necessary, as new features were noted on WebPages accessed for the study. The data collection was done at April 2015 for further analysis. Analysis and Interpretation of Data General Information The library portal of any institution has to provide general information about library regarding about library, library objectives, area and site plan, contact information, date of update, FAQs, library automation, library committee and other information, library staff, membership information, news and events, working hours, suggestions and feedback sections. It also should include authority, copyright, domain name, of the site. General information available in central university library website are shown below table 1

General information CUK CUKE IGML MANUU ARL CUT About library Y Y Y Y Y Y

Mission statement Y Y Y Y Y N Site map N N Y Y Y N

Working hours/Holidays Y Y Y Y Y N Library rules Y Y Y Y Y Y

Membership Y Y Y N Y Y Administrative activates N N Y Y N N

News and events Y Y Y N Y N Contact information Y Y Y Y Y N

Staff directory Y Y Y Y Y N

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Website in other languages N N N N N Y

Visitors list Y N N N Y N Gallery Y Y N Y Y Y

FAQ N N N Y Y N Date of update N N Y Y Y N Feedback N Y N Y Y N Copyright Y N Y Y Y Y Future plan Y Y N Y N N IT Infrastructure Y N Y N Y N Domain ac.in ac.in ac.in ac.in edu.in ac.in

Table 1General Information available in central university library websites in South India CUK=Central University of Karnataka, CUKE= Central University of Kerala, IGML=Indira Gandi Memorial Library, MANUU= Maulana Azad National Urdu University, ARL= Ananda Rangapilli Library, CUT= Central University of Tamil Nadu, Y=Yes & N=No From the table it is found that the websites of CUK, CUKE, IGML, MANUU, ARL, CUT provide the information about library. The library website that inform as about the mission statement of their library are CUK, CUKE, IGML, MANUU, and ARL where, as CUT does not give any information about it. Library website of IGML, MANUU, and ARL include the location information. The entire library website provides the information about working hours/holidays except CUT library website. It is a good sign that most of the central universities in South India provide the information about library rules and membership details. News and events provide the information about the activity of the library, events that have take place or upcoming events are mentioned in the library websites. CUK, CUKE, IGML and ARL contain the information about news and events. The websites of CUK, CUKE, IGML, MANUU, and ARL contains the details about contact information, staff director. The copyright details are viewed in the websites of CUK, IGML, MANUU, ARL and CUT. The library websites of CUK and ARL provide the information about visitors list. The update dates are given by only IGML.MANUU and ARL library website. The domain name of CUK, CUKE, IGML, and MANUU are 'ac.in' where as that of ARL are 'edu.in'. Only CUT library website provides information in other languages than English. Feedback facility is provided by the websites of CUKE, MANUU, and ARL library. From the study it is revealed that majority of library websites provide the information about library, library rules, membership. Information such as FAQ, administrative activities is less in number. The graphical representation of general information’s is shown in below. Figure - 1 : General Information Available In Central University Library Websites In South India

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Information about E- Resources To be effective the library website must include electronic resources including e-journals, databases, e-books, e- patent, e-theses, online newspapers and institutional repository. it is revealed that a good number of library provide the link to their electronic resources. The details of the E-Resources available on the six websites of central universities of South India under study are shown in the following Table 2 Table - 2 : E-Resources Available In Central University Library Websites In South India

E-Resources CUK CUKE IGML MANUU ARL CUT

E-Books Y Y Y Y Y N E-Journals Y Y Y Y Y Y

E-Databases N N Y Y Y N E-Theses N Y N N Y N

E-Patents N N N N Y N

Online newspapers N N Y N Y N

Institutional repositories Y N N N Y N

Useful links Y Y Y Y Y N

On trial access Y N Y N Y N

CUK=Central University of Karnataka, CUKE= Central University of Kerala, IGML=Indira Gandi Memorial Library, MANUU= Maulana Azad National Urdu University, ARL= Ananda Rangapilli Library, CUT= Central University of Tamil Nadu, Y=Yes & N=No From the table it is clear that the Information about e-books and e-journals provided by all the library websites. The lists of e-journals are provided by websites of ARL, CUKE and IGML library. Online newspaper facility was provided by IGML and ARL library websites.CUK and ARL have their own institutional repository on their library homepage. Out of six provided the details of e-these i.e., CUKE and ARL library website. The entire library website provides useful links to other information sources except CUT. Majority of the library websites contains the information about e-books and e-journals. Few number of libraries provide e-these and e- patents. Graphical representations of E- resources are shown below. Figure - 2 : E-Resources available in central university library websites in South India

Application of Web 2.0 Technology The applications of Web 2.0 technologies in library websites have great importance as these increases the interactivity with the audience. The investigators assessed the extent of use of Web 2.0 technologies in the central university

Special issue November 2015 Page 227 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 websites in South India. In Table 3 and Figure 3 shows the use of Web 2.0 technologies such as Blogs, RSS, Atom, and so on. Table - 3 : Application of Web 2.0 Technology in central university library websites in South India

Web 2.0 CUK CUKE IGML MANUU ARL CUT RSS N N N N N N Atoms N N N N N N Blogs N Y Y N N N

CUK=Central University of Karnataka, CUKE= Central University of Kerala, IGML=Indira Gandi Memorial Library, MANUU= Maulana Azad National Urdu University, ARL= Ananda Rangapilli Library, CUT= Central University of Tamil Nadu, Y=Yes & N=No From the table it is revealed that information about blogs is available in CUKE and IGML library websites. RSS and atoms are not available in library websites. Graphical representations of web 2.0 technology are shown below.

Fig. 3

Application of Web 2.0 Technology available in central university library websites in South India Findings Following are the major findings of the study, 1. The studies revealed that all the university library websites in South India have the information about library, its rules, membership,. The result of the study clearly show that majority of the central university library website provide the information about mission statement, working hours, contact information, staff directory, copy right. Whereas only few library website provide the information on site map, date of update, future plan. A few websites provide opportunity for user interaction in the form of feedback. Some of the library website indicates the information about FAQ, administrative activities. Only CUT library website provides the information on provision of website in other language. 2. All the libraries present their collection on their websites. Majority of the websites provide detailed information in their collection like book and journals .Some of the library website provide the information on magazines. A good number of libraries have their websites with the details of newspapers, dissertations. A few of the websites provide information about CDs/DVDs, new arrivals, back volume and question papers. Only IGML library website provides the information about Project reports and annual reports. 3. The findings clearly inform that all the library website provide the information about the services of the library. Entire central university library website provide web OPAC facility. Majority of the library provide details of the circulation service. A good number of library provide the information on reference services and inter library loan.

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A few library website indicate the information about 5. Usage of FAQ is less in central library websites. DDS, reprographic services, reservation, browsing Providing those informations will be very helpful to facility for visually challenged, and exhibition. Only the users.\ MANUU provide the information about bibliographic Suggestions for further study services. 1. A comparative study can be carried out to analyze 4. Majority of the library access e-resources on their the content of central university websites in South library websites like e-books and e-journals. From India and North India. this study it's clear that many of the central university website provide useful links to other e-resources. A 2. The content analysis of central universities websites good number of the library websites indicates can be done in national level. information on e-databases and on trial access of e- 3. The recent trends exploring in the library website are resources. It is clear that only a few library website web 2.0 applications. Further studies can be carried provide the details of online newspapers, institutional out on that area. repositories and e-these. Only ARL library website Conclusion provide the information about e-patents. The study gives an informative preview of the contents 5. Libraries adopt Web 2.0 applications focusing on the of central university library websites in South India. users which emphasize the user-centered attitude. Although the libraries have a web presence and varying It is revealed that only two libraries use web 2.0 levels of services, there is enormous scope of improving technology that are blog. CUKE and IGML library the websites. Most of the library website not gives the use blogs. details of update. Library website should update regularly. Suggestions for Improvement It enhances the use of library websites. The websites Based on the findings of the study, in this section should limit the links included in a text and should investigator has been made to suggest a few provide links to as many documents as possible online. recommendations, which will help to creator or designer The links should be clearly identified and point towards of the website to make library website more interactive, the right destination. The websites should handle attractive and workable. It will also be helpful to the user multimedia documents through multimedia interfaces. of the library website to evaluate its content, quality of The websites should provide the collaborative forum for information, design, structure, and organization of discussion and sharing of information for library users. information. The present study made the following The central university library websites should exploit the recommendations for improvement of library websites. emerging internet technologies to attract and increase its users. 1. Majority of library websites have not mentioned the 'date of update' in their website. Date of update show Reference the currency of information available on the websites. 1. Shukla, Akhandanand and Tripathi, Aditya. (2010). So it is necessary to provide the date of update on Establishing content for library websites: A case the website. study of Indian academic library websites. Annals 2. Majority of the library websites not mentioned of Library and Information Studies, 57. 403-416. information about library services like CAS, 2. Baka, Ahmad Bakeri Abu and Nur Leyni N.P.G. references, DDS. It is recommended to facilitate (2015). Webometric study of world class univerisites above mentioned services. website. Qualitative and Quantitative methods in 3. Few library website provides the provision for viewing libraries, 105-115 website in other languages. Providing facility for 3. Jange, Suresh. (2014). Library websites of changing the languages will increase the user Universities in Karnataka state: An evaluative study. response. Journal of Advances in Library and Information 4. The study indicate that the usage of web 2.0 Science, 3(3), 195-202. technology is very less in library website.The websites 4. Manju Kataria and Bandana Pandey. (2014). should provide the collaborative forum for discussion Coverpage of Indian Corporate Website: A content and sharing of information for library users. The central analysis. EPRA International Journal of Economic university library websites should exploit the and Business Review, 2(10), 100-107. emerging internet technologies to attract and increase 5. Tafaroji, Roghaye and Tahamtan, Iman. (2014) its users. Use of application like RSS and atom will Webometric analysis of Iranian medical universities help to increases the usage of websites. according to visibility site and rich files. Webology, 11(1).

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6. Dahiya Ashish and Shelley, Duggal. (2013). 8. Pareek, Sarwesh and Gupta, Dinesh k. (2012). Comparatative analysis of the websites performance Information about services and information resources of industry integrated HMIS central government on website of selected libraries in Rajasthan: A study. IHMS and State Government IHMS in India. Torisum DESIDOC Journal of library and information & Hospitality, 2(3), 1-8. technology, 32(6), 499-508. 7. Kabir, S. Humayoon and Sreelekshmi, S. (2013). 9. Pareek, Sarwesh and Gupta, Dinesh k. (2013). Websites of Government science and technology Academic library website in Rajasthan: An analysis research institutions in Kerala: A content analysis of content. Library Philosophy and Practice, 1-22 study. Libraries in the changing dimensions of digital 10. Thanuskodi, S. (2012). A webometric analysis of technology, New Delhi, B.R Publishing Corporation, selected institute of national importance website of 888-897. India. International Journal of Library Science, 1(1), 13-18.

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MANAGERIAL CHALLENGES AND INNOVATIONS IN ENTREPRENEURSHIP

Indhra Vinod1

Abstract The establishment and development of Small and Medium Enterprises is a resourceful input leading to the rapid development of economic and social prospects. A motivated SME’s sector establishes a strong foundation to increase the standard of living and reduce poverty. There must be a rigorous and continuous need to improve the factors that furnish an affable entrepreneurial climate to exceed major obstacles. Maintaining technology, business and knowledge as buzzwords, the rapid advancements in the streams of science and technology are leading towards Knowledge Entrepreneurs and Technology Driven Enterprises. The social and economic indicators has influenced in the abrupt development of Indian economy setting a bright future in country’s education and GDP statistics. Knowledge based industries are likely to acquire maximum prominence facilitating support to SME by the government in the next decade. The major essence is to focus Human Resource Development support with the establishment of appropriate mechanisms towards Technology Business Incubators in the era of globalization. Key words : Incubators, entrepreneurship, venture capital, globalization

Introduction development for new and newer technologies day by day, The establishment and nurturing of Small and Medium resulting into the emergence of new areas of technology. Enterprises (SME’s) is a vital input in creating dynamic These rapid developments in the field of science and market economies in the economic and social technology are also leading towards a new class of development of transition countries. Entrepreneurs are knowledge entrepreneurs and knowledge/technology the key drivers and inhibitors of economic growth, driven enterprises, which important factor for the innovation, regional development and job creation. A economic development of nations and a source of value- strong highly motivated SME’s sector provides a strong added employment generation. At the same time, the foundation to increase standards of living and to reduce process of globalization, establishment of World Trade poverty. Despite being recognized internationally the Organization, high quality standards and environmental importance of SME’s, they still face major challenges considerations, imposition of trade barriers by developed in many especially in developing countries like India countries, information technology revolution continues today. The challenges of business startups, its survival to adversely affect the conventional/traditional competitive and growth are often substantial. The availability of advantage of the small and medium enterprises in the financial resources and lack of capacity to handle developing countries and a threat for survival in the complex business management issues as well as a marketplace. complicated and bureaucratic environment present major Indian Economic Picture obstacles. As a result, there is an urgent and continuous India has made considerable achievements during its need to improve the different factors that make up a good sixty years of independence. Economic reform and entrepreneurial climate. liberalization measures over the last decade have led to In order to establish strategic plans for small and strong economic growth, increased exports, reduced medium enterprise development, it has been necessary inflation and a positive impact on social indicators. Today, to establish some business development sectors to India is the fifth largest economy and second most bridge the gap between private and public sectors, since popular country in the world. Indian Economy has private sector development relies on a partnership significantly grown in the recent years. Both social and between the private and public sectors. Since, Business economic indicators have reflected their respective and Technology go hand in hand and hence they can be positive impact for the development of the Economy. In separated. Technology, Business and knowledge are the Social sector the best example today is 108 million becoming the buzzwords of the new millennium. As the children attend primary schools in India by making the technology is leapfrogging for beyond the expected, country’s education system the second largest in the enormous activities are in progress in research and world after China. In the economic sector Gross

1. Assistant Professor, Department of Business Administration, Alpha Arts And Science College, Porur, Chennai

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Domestic Product (GDP) in nominal terms of US$692 the most important factor of industrial process. In the billion in 2004, has made the country the world’s tenth SME sector, technology is mainly sought in the form of largest economy. Real GDP grew by 6.9 percent in processes and product know-how. The different sources 2004 – 05 compared to 8.5 percent a year earlier. from which technology flows into the SME’s are Prospects for real GDP growth for 2005 – 06 is 6.5 to 7 government institutions, local suppliers, foreign suppliers, percent. External position of the economy is becoming R&D institutions, industries etc. Recent studies on significantly stronger. Exports have grown, especially sources of technology for SME’s have found that the exports of services, which grew by 105 percent in 2004 entrepreneurs obtained technological knowledge mainly – 05. Growth in services has largely been fueled by the from local suppliers. Technology identification, information technology boom in which India is emerging acquisition, transfer, adoption and up gradation are some as a world leader and is helping in building a strong of key issues in relation to technology management economy. relevant to SME’s. Future vision on Indian SME sector Monitoring and Measuring SME’s: In the present scenario dynamic world “change” is the Small Industries Development Organization (SIDO) under only permanent thing. The process of change has Ministry of Industry formulates and monitors policies and accelerated in most recent years due to macroeconomic programs, provides business services, establishes transformation both in house as well globally. In the product-cum-production development centers for SME’s. present situation the two big global economic forces Small Industries Development Bank of India (SIDBI), a which are competing for world attention are (a) the advent special financial Institution offers long term credit facility of a new economy due to information and communication as well offers assistance in marketing and export technology and (b) due to globalization increased promotion to SME’s etc., like this many institutions and instability and uncertainty. With the formation of WTO, organizations have offered assistance and advices and a new trade environment is emerging and a large number at the same time measure and monitor for effective and of items are now under Open General License (OGL). In efficient functioning of SME’s. the recent times there has been reduction in import Glance At Entrepreneurship Development in India duties. These have thrown a challenge before the SME sector which warranted them to be more competitive Entrepreneurship is a global and multifaceted phenomenon and efficient to face the international competition with significant difference between countries. It has successfully. Further, consumer’s choice, preference positive relationship between entrepreneurship and and their quality are varying a lot. To cope up with these economic growth that contribute towards the wealth and changes, the SME sector will have to undergo many social development of a nation under the given internal and external transformations. technological, industrial and political framework. The government support for the small firm sector like funding Change in the technological requirement infrastructure and protection from competition has been The competitiveness of any economy depends on how withdrawn. Social and cultural norms in India favor efficiently all the resources in the process of production stability and security. Capital investment, particularly are utilized and how efficiently these are marketed, for early stage development, is a major hurdle faced by hence the entire chain of production and marketing has most of the entrepreneurs in India. Growth is hampered to be efficient. Many of the items produced in the small- due to the scarcity working capital; financial institutions scale sector are becoming redundant because of the do not appreciate the specific nature of entrepreneur’s change in consumers choice, preferences and also due needs. The infrastructure in the country is better but to change in new technology. The entry of foreign inadequate, as is the supply of professional and products/services has given consumers a wide choice commercial services. There is a short fall in skill-based of hi-tech and good quality products at competitive learning and the principles of the market economy in prices. This means that the process of production has education. While government agencies and educational to be cost efficient and meet quality needs of the institutions carry out quality research and development, consumers. This improvement can come through the there is little focus on the commercial aspects of use of latest technology. Hence, the need for change in business. Industry investment in research and technology is more relevant for SME’s than large units. development is low. Sourcing of technology Dominating And Influential Forces To Nurture Products, processes, designs, machinery, tools, testing, Techno-Entrepreneurship equipment, technical training, consultancy, up gradation, In India, the Government has identified the need to etc. which depend on technology is considered one of support and nurture entrepreneurship through successful

Special issue November 2015 Page 232 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 methodologies used world over but adapted those which concentrated by STEP to accomplish the proceedings suit local environment and conditions. Among them some of TBI. of them are discussed below. Technology Business Incubation (TBI) Mechanisms National Science and Technology Entrepreneurship Various enabling factors crucial for the success of Development Board (NSTEDB) incubating mechanisms in a country are R&D NSTEDB, established by the Government of India in expenditures, new technologies, R&D, Resources, 1982, is the nodal government agency promoting various Technology, Production, Costs and Socio-economic mechanisms to promote gainful self-employment in the conditions. Startup entrepreneurs need various support country and to link idle S&T manpower with the under- services like marketing, business facilitation, technical utilized institutional credit facilities. The Board is being expertise, resources for financing and business serviced by a government organization named management during their initial phase to enhance its Department of Science and technology (DST) with major survival. Incubators provide a conducive atmosphere and objectives being; a range of critical support services and needed facilities • Promoting and developing entrepreneurship through to nurture and support a start-up. Various mechanisms the use of S&T. like science parks, technology parks, innovation centers, technology business incubators are being experimented • Facilitating various informational services relating to world over to catalyze growth of technology based new entrepreneurship development. enterprises. Some of the Indian experiments on • Networking central, state government agencies and Technology Business incubation are presented below. NGO’s in entrepreneurship and self-employment development. Technology Business Incubators (TBI): • As an advisory body to the Government agencies in A TBI helps in incubating knowledge-based start-ups into regarding entrepreneurship. commercially viable products/services by providing specialized guidance, critical support services, innovative Science and Technology Entrepreneurs Park (STEP) - financing and networking support within a conducive The Science Park and similar initiatives in the developed environment. countries are the latest in the evolutionary line to create an atmosphere for innovation and entrepreneurship; for World scenario on TBI active interaction between academics and industries; At present, there are around 3,000 incubators of various for sharing ideas, knowledge, experience and facilities types operational in the world. In the United States, there for the development of new technologies and their rapid are over 800 incubators including about 200 Internet transfer to the end user. STEP provides a reorientation incubators. Europe has about 1,000 incubators including in approach to innovation and entrepreneurship involving 300 incubators in Germany. Among the developing education, training, research, finance, management and countries, China leads with about 100 incubators. Among government. It has been promoted jointly by the DST, the industrializing countries, Republic of Korea is reported state government, financial institutions and the host to have about 300 incubators. Earlier (1980s) incubators institutions. The prime objectives of STEP’s are to: were essentially offering affordable space and shared • Link between universities, academic and R&D facilities to carefully selected entrepreneurial groups. institutions. Thereafter, the incubators started varying widely in key respects such as objectives, sectoral focus, and • Promote entrepreneurship among science and business modes, etc. In some countries the incubators technology persons. were set up for empowerment, while in others for • Provide R&D support to the small-scale industry. technology commercialization. In the 1990s, workspace • Promote innovation based enterprises and shared facilities were supplemented with counselling, skills enhancement and networking services to access The NSTEDB, jointly with all India financial institutions, professional support and seed capital. With the has so far catalyzed 15 STEP’s in different parts India technological progress, the incubators are intended to which have promoted nearly 1000 units generating annual mobilize information and communication technology (ICT) turnover of about more than Rs.150 crores and and provide a convergence of support, towards creating employment nearly 7,000 persons. More than 100 new knowledge-based ventures. An incubator combining products and technologies have been developed by the technology with business is a technology business STEP’s promoted entrepreneurs. STEP has taken the incubator. Virtual incubator or incubators without walls privilege in setting the TBI nomenclature to discuss social have also emerged recently, which offers need-based and economic prospects. The following aspects are services by networking with the relevant agencies.

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Indian scenario on TBI: TBI’s initially targeted academic institutions/R&D The techno entrepreneurship initiative was started by institutions of excellence with areas of focus being the Department of Science and Technology (DST) in 1985 information technology, biotechnology, Materials through the establishment of Science and Technology management, agriculture, design, instrumentation and Entrepreneurship Parks (STEP’s). The concept revolved much more. The services rendered by TBI’s involve; around the creation of STEP in academic institutions / • Managing business and professional services research lab of excellence with an objective of opening necessary for nurturing and supporting early stage doors of self-employment for young Science and growth of technologies and technology-based Technology graduates. With the maturity of STEP’s in enterprises. changing economic scenario, the DST established TBIs • Providing workspace, communication facilities, in the year 2000. Today there are more than 40 STEP’s phone, fax, Internet and other shared services / TBIs promoted by DST and in addition several other including secretarial assistance. ministry’s and private players have established TBIs • Business skill development, Business planning and which today totals to 100. development. The TBI’s are aimed at achieving the following • Business management and networking with objectives: stakeholders. • Enterprise and entrepreneurship development: An • Other specialized services like Design, R&D, testing, appropriate tool for economic development by legal, etc. promoting technology/knowledge-based businesses, culture of technopreneurship and creation of value TBI is also expected to assist the start-up firms with added new jobs; financial support such as venture capital, funding from angel investors and other financing mechanisms and • Technology commercialization: To provide a platform equity participation. for speedy commercialization of the technologies developed in the institutes to reach the end-users; Venture Capital funders in India • To provide an interfacing and networking mechanism In India the impact of venture in the new enterprises are between academic, R&D institutions, industries and low. The first origin of modern day venture capital in India financial institutions; can be traced to the setting up of a Technology • To provide value addition through its services provided Development Fund (TDF) in the year 1987-1988, through to its tenants as well as to the existing technology the levy of a cess on all technology import payments. In dominated SMEs; 1988, Technology Development and Information Company of India (TDICI) [presently known as ICICI • To provide R&D for industry: It also enables small (Industrial Credit and Investment Corporation of India) industry to take up R&D activity and the technology Ventures] and Gujarat Venture Finance Ltd, (GVFL) were up gradation activities. formed. In 1996, Stock Exchange Board of India (SEBI) Working mechanism of TBI: came out with guidelines for venture capital funds, which The various aspects in the successful operation of a TBI paved the way for foreign venture funds to enter India. are its location, preferably to a knowledge source with Some of the Venture Capital funding currently in practice some formal links. A well-structured business plan should includes; private equity funds; raising funds through include the identified focus areas, a good management public; regional VC funds; Incubators. With the outburst team, plan for arrangement of financial resources in IT boom, the Venture Capitals are focusing mainly on including cash inflow and outflow. It should provide a biotechnology, telecommunication, entertainment, sophisticated array of services and devise well-defined education and new materials sectors, etc. At present, tenant selection and exit mechanisms. there are more than 100 established VCs operating in India at the national level as well at state level mainly TBI mechanism for India from the Government (financial institutions) and private Experiences show that a single model does not exists sector. The total pool of Indian venture capital today, to all locations. Suitable models are being developed stands over Rs 50 billion. keeping the local needs, climate and the objectives in Conclusion view. India being diversify in nature, a single and a uniform model may not be suitable. For each local needs, different In next 10 years, knowledge-based industries are likely models are worked out after examining the local to acquire greater prominence and SME’s are likely to infrastructure availability and overall framework of come up in the industry. The role of the Government is objectives to be achieved. to facilitate support to SME’s in the era of globalization

Special issue November 2015 Page 234 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 and to focus on providing human resource development • Gupta, A. and B.K. Jain “Technology business prop up along with establishment of suitable support incubators: Opportunities and challenges for India”, mechanisms and nurture technology oriented Asia Pacific Tech Monitor, vol. 19, No. 4, July-August enterprises. Some Public and Private Banks and 2002. Financial Institutionsalso support SME’s to greater • Menon, P.K.B “Technology business incubation extend, even Government contributes various Monetary, systems In India”, paper presented at the First Tax benefit in promotion and success of Entrepreneur in International Workshop on Technology Business India Incubators in India, Bangalore, 29-31 January 2001. References • NBIA, Proceedings of the National Business Incubation Association’s 16th International • Small Industries Development Organization (SIDO) Conference on Business Incubation: Explore Your under Ministry of Industry World, Enrich Your Community, Toronto, 28 April – 1 • Official Gazette of Government of India, Ministry of May 2002. Industry and Commerce • Raetz, Gerhard “Technology incubation: An • Small Industries Development Bank of India (SIDBI) instrument to support new enterprises”, Asia Pacific official Websites TechMonitor, Jan-Feb 2001. • Agrawal, S.P. “Strengthening Technology Incubation • Global Entrepreneurship Monitor 2001 Executive System for Creating High Technology-based Report (London, GEM). Enterprises in Asia and the Pacific” 2001. • Woo-Geun Song “Report of the Regional Consultative • Bischoff, J. “An overview of successful international Meeting on Strengthening Technology Incubation technology business incubator programs”, paper System for Creating High Technology-Based presented at the First International Workshop on Enterprises in Asia and the Pacific”, in Strengthening Technology Business Incubators in India, Bangalore, Technology Incubation System for Creating High 29-31 January 2001. Technology-based Enterprises in Asia and the Pacific 2001.

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A STATE OF THE ART REVIEW ON SUPPLY CHAIN COLLABORATION

Shreejith T V 1 Kemthose P Paul 2 Abstract Supply chain collaboration is certainly a most debated topic of the present market, but many supply chain managers are unaware of what is the underlying concept of collaboration. For most of the firms, collaboration simply means an exchange of ideas and information among partners – usually directed toward a specific opportunity or problem – where members of the collaborating companies get together to share best practices, address concerns, and generate solutions. In order to have an idea about how to make a collaboration decision effectively, it is necessary to acquire a sense of what a strong collaboration arrangement encompasses. For the better understanding of which collaboration arrangement is right for a given setting, it is important to understand the potential benefits of strong collaborations can yield and measure those benefits against the potential risks of entering into such an alliance with a partner whose interests may/may not be perfectly aligned with the partnering firm. In addition to this awareness on key factors that nurture productive, collaborative arrangements will helps to take decisions to leverage or mitigate their effects. A lot of academic and non academic research has begun to explore this issue. Through this work we have explored the major concepts/strategies adopted by different authors to make the supply chain collaboration a success. Key words: : Supply chain collaboration,CPFR, coordination

Introduction be contract-based and adversarial. (2)Cooperation: - In Collaboration is the common thread in new wave of this type collaboration there will be only a few suppliers supply chain business models. A number of analysts but there will be a longer term customer supplier are advocating on the need of supply chain collaboration relationship. (3)Coordination: - This collaboration since last 5-10 years because of the severe competition scheme’s characteristics are firms’ information systems in the market and within the supply chain. Consumers are more strongly linked and there will be more emphasis will drive the need for greater supply chain collaboration on strategy. (4)Collaboration: - In this scheme, the link over the next decade, according to a study by the between companies in a supply chain setting is as Consumer Goods Forum and Capgemini titled “Future strong as it can be before joint venture or vertical Value Chain 2020: Building Strategies for the New integration. This can again be classified into two types Decade” [5].The report predicts that, over the next such as - Type 1: Where companies working together in decade, supplier production will be brought into line with logistics and manufacturing related activities in a supply predicted and actual demands from consumers, rather chain - Type 2: Where Strategic alliance bringing together than based on the forecasting models used today. Future buyers and suppliers in separate industries or different products will be shipped to collaborative warehouses in supply chain stages and creating a single system. World which multiple manufacturers store their products. class supply chains benefit in many ways from Competing firms will then collaborate to collect and collaboration - even in times of severe economic stress. deliver the goods. They will be driven by demand for These benefits extend beyond improved efficiency and carbon-efficient distribution and limited supply chain effectiveness to include helping all the supply chain capacity. members meet customer demands, grow markets, and increase competitive market share. These advantages Supply chain collaboration can be defined as “two or are achieved in a number of innovative ways over the life more chain members working together to create a of the collaborative relationship — for example, by competitive advantage through sharing information, increasing sales volume from downstream buyers, making joint decisions, and sharing benefits which result lowering operational costs within the relationship, word- from greater profitability of satisfying end customer needs of-mouth referrals, and new product and process than acting alone.”[1]. It involves information sharing and innovations borne from the working relationship between process coordination to support joint planning, ordering, trusting partners [2]. and distribution among partners in a supply chain and there are different levels of collaboration such as (1) Arm- Collaborative supply chain allows companies to create length relationships: - This type of collaboration schemes highly responsive, demand-driven business networks that will be often short-term in duration; nature of relation will solve today’s global supply and fulfilment challenges [21].

1. Assistant Professor, Dept of Mechanical Engineering, Sree Narayana Gurukulam College of Engineering, Kolenchery, Ernakulam 2. HOD, Dept. of Management Studies, Sree Narayana Gurukulam College of Engineering, Kolenchery, Ernakulam

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There are enormous issues in the collaboration of supply and inventory data using Web technology. It is also chain; since the information sharing between the partners a highly practiced system of Wal-Mart. are being strategically critical. (4) Efficient Consumer Response (ECR):- Collaboration initiatives ECR Europe Executive Board expresses the Different initiatives are taking place in collaborating ECR definition as “Efficient Consumer Response different supply chains for the last few decades. They (ECR) is the realization of a simple, fast and are [31] consumer driven system, in which all links of the (1) Quick Response : - Quick Response (QR) is both logistic chain work together, in order to satisfy a management paradigm and a methodology that consumer needs with the lowest possible cost”. allows supply systems to react quickly to changes Efficient consumer response (ECR) combines the while improving their performance. QR aims to help two innovations on a conceptual level, i.e. efficient organize a business in the face of problems replenishment and category management [40]. ECR associated with the vast array of goods and services has a few starting points. Firstly the definition shows now to be found in consumer markets [36]. It is that consumer demand plays an important part. The particularly relevant to the Fast Moving Consumer chain has to ensure continual improvement of Goods (FMCG) and Fashion industries. QR works consumer satisfaction, products, and quality. by compressing the time between product or service Secondly, the definition also shows that maximum design concept and appearance on the retail shelf. efficiency of the total logistic chain is required [34]. It then takes advantage of such recent technologies The realization of the two starting points cannot be as Point of Sale (PoS) tracking and Electronic Data done without accurate information, which must be Interchange (EDI) to constantly up-date estimates available when needed. To keep the costs low, it is of true consumer demand, and then places intelligent preferred that this information and communication re-orders for goods with flexible manufacturers and is paperless. their suppliers [38]. (5) Collaborative Planning, Forecasting and (2) Vendor Managed Inventory (VMI): - Vendor Replenishment (CPFR):- Voluntary Inter industry Managed Inventory or VMI is a process where the Commerce Standards (VICS) defines Collaborative vendor creates orders for their customers based on Planning, Forecasting and Replenishment (CPFR) demand information that they receive from the as a business practice that combines the customer. The vendor and customer are bound by intelligence of multiple trading partners in the an agreement which determines inventory levels, fill planning and fulfillment of customer demand. CPFR rates and costs [37]. Instead of the customer links sales and marketing best practices, such as reordering when its supply has been exhausted, the category management, to supply chain planning and supplier is responsible for replenishing and stocking execution processes to increase availability while the customer at appropriate levels. Wal-Mart has reducing inventory, transportation and logistics costs mastered VMI and is the company against which [40]. The key concepts behind CPFR can perhaps many other organizations benchmark themselves. best be explained by comparing it to the traditional Furthermore vendor representatives in a store benefit Reorder Point (ROP) approach. Under a ROP the vendor by ensuring the product is properly procedure, retail level planners collect product displayed and store staffs are familiar with the information and marketing programs at the product features of the product line, all the while helping to distribution point level. Combining this information clean and organize their product lines for the store with point-of-sale (POS) data, item-level forecasts [39]. and event calendars that record promotional dates, special marketing programs, etc., are thereby (3) Continuous Replenishment program (CRP) :- The generated [35]. Based upon inventory and/or service "continuous replenishment system" sends orders level targets, the forecasts (and all the corresponding for new merchandise directly to suppliers as soon errors) are used to generate reorder points. as consumers pay for their purchases at the cash register. Point-of-sale terminals record the bar code When inventory of an item reaches the specified reorder of each item passing the checkout counter and send point, the retailer/distributor places an order to the a purchase transaction directly to a central computer manufacturer. If the product is available, it is shipped to [33]. This computer collects the orders from all stores the retailer/ distributor; if not, the retailer/distributor will and places orders with their suppliers to replenish seek alternative solutions to replenish the item [30]. The the sold products. Suppliers can also access sales manufacturer, on the other hand, collects product

Special issue November 2015 Page 237 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 knowledge and marketing programs of major retailers partnering and partner enabled knowledge creation, and from public sources. Based upon retailer/distributor such synergistic benefits could not be attained by acting orders and historical shipment information, the independently [13]. Collaboration involves creating new manufacturer generates a forecast by item, and in most values together rather than mere exchange, and it is cases, by geographic region. These forecasts also drive controlled not by formal systems but a web of the production of the items, as well as the geographic connections and infrastructures that enhance learning regions where the items will be produced and warehoused and open new doors and unforeseen opportunities [14]. [41]. However, such independent planning between the Due to the prevalence of information asymmetry, members of the supply chain can result in extended information sharing is a prerequisite for any collaborative cycle times, poor customer service, inefficient use of planning approach. Individual members of the supply working capital, items being produced and/or stocked chain dispose of relevant (private) data regarding their in the wrong geographic regions, etc. During the last own operations (e.g. cost and capacity data, inventory decade CPFR emerged as a method to counter some of levels, demand forecasts) that need to be exchanged in the shortcomings of the ROP approach. The objective order to enable joint decision-making [15]. behind a CPFR initiative is that the trading partners work Pibernik et.al [15] introduced the concept of JELS (Joint off a common forecast or plan. That is, the retailer, Economic Lot sizing) model with alternative benefit distributor and the manufacturer collect market sharing rules, and described secure protocols based on intelligence on product information, store promotional SMC (Secure Multi Party Computation) that enable programs, etc., and share the information in real-time secure computation for stochastically secure over a global Wide Area Network (WAN). However, with collaborative planning. Bernhard J et.al [12] modeled the CPFR the distributor and manufacturer will jointly constituents of a collaborative supply chain, the key redesign key business processes such as setting parameters they influence, and the appropriate increased sales objectives, or improving transaction performance measures in a decision support environment mechanisms to reduce costs of all parties [41]. enables prior understanding of the impact on the Literature Review performance of a collaborative supply chain as a result Collaboration is a process of participation through which of changes in the constituents and key parameters. people, groups and organizations work together to Yongsheng Liu et al [16] by using the system theory, achieve desired results. Collaboration, in the context of psychology and from the aspect of business operation the supply chain is to share the joint objections; an explained the necessity of adopting collaborative intelligence of commitment; trust and respect; skills and management for companies facing supply chain crisis. knowledge; and intellectual agility [9]. Especially in They proposed strategies of collaborative management today’s complex competitive business environment, for companies to survive supply chain crisis: to choose collaboration is the driving force behind effective supply suppliers who have willingness to cooperate; to chain management. Supply chain collaboration means coordinate the values among companies; to advance the two or more autonomous firms working jointly to plan visibility of supply chains; to strengthen the cooperation and execute supply chain operations [11] Hence supply of security; and to fully tap people’s subjective initiatives. chain collaboration can be defined as a joint decision making process for aligning plans of individual supply Yonghui Fu [17] mentioned about the preliminary chain members with the aim of achieving coordination approach towards process-oriented collaborative under information asymmetry [3]. Mei Cao [10] defines inventory management in supply chains, taking supply chain collaboration as seven interconnecting advantage of multi agent technology in terms of modeling components: information sharing, goal congruence, and simulation and an SCM support model is proposed decision synchronization, incentive alignment, resources as a foundation to combine the supply chain processes sharing, collaborative communication, and joint with the multi-agent system. They also proposed a knowledge creation. reliable and valid measurement of supply chain collaboration model based on data from 321 companies These seven dimensions are expected to be inter- from the Qubec Forest products industry using a correlated and co vary with each other although there structural equation modeling. In spite of the general low might be causal relationships among them. By level collaboration in this traditional industry, a first order collaborating, supply chain partners can work as if they measurement followed by a second order confirmatory were a part of a single enterprise. Such collaboration factor analysis was done. can increase joint competitive advantage, i.e., collaborative advantage. Supply chain collaborative Mahesh Nagarajan et al [6] surveyed some applications advantage refers to strategic benefits gained over of cooperative game theory to supply chain management competitors in the marketplace through supply chain with special emphasis on two important aspects of

Special issue November 2015 Page 238 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 cooperative games: profit allocation and stability in a in realizing the potential benefits of supply chain collaborative environment. The paper first describes the collaboration. Specifically, it shows how the Theory of construction of the set of feasible outcomes in commonly Constraints approach can be used to expose an inherent seen supply chain models, and then uses cooperative dilemma of collaboration and establish collaborative bargaining models to find allocations of the profit pie replenishment policy and collaborative performance between supply chain partners. In doing so, several metrics so that the chain members can work together models are analyzed and surveyed, and include suppliers to advance supply chain profitability. Bikram K. selling to competing retailers, and assemblers Bahinipatia et.al [23] developed a generic quantitative negotiating with component manufacturers selling model using the Analytic Hierarchy Process–Fuzzy Logic complementary components. It also discusses the issue model (AHP– FLM) to comprehensively assess the of coalition formation among supply chain partners. An degree of collaboration with individual horizontal exhaustive survey of commonly used stability concepts collaboration initiatives with a view to check feasibility was also presented. for satisfying the customer requirements. A fuzzy rule based collaboration intensity index (CII) is developed to Steve G. Sutton et. Al [21] elaborated the integrated build up the relationships among these evaluation nature of inter organizational relationships or attributes. Alain Yee-Loong Chong et.al [24] conducted collaborations in their supply chain and in the an empirical investigation on the relationship between contemporary business model and explored the issues supply chain factors and the adoption of e-Collaboration that should be considered in the development of an tools in the supply chain of Electrical and Electronic external financial reporting model that adequately (E&E) organizations in Malaysia. It was found that the encompasses such relationships. This purpose had been major factors affecting the adoption of e-Collaboration addressed in two stages. First, a review was provided tools are trust, product complexity and product volume on the evolving nature of business relationships from an and frequency. Among the above mentioned trust is found enterprise-centric competitive model to a business to have the strongest influence followed by product environment where competition is better viewed as complexity and product volume and frequency on the supply chain versus supply chain. Consideration was adoption of e-Collaboration of supply chains. Usha R given to how this alternative view of the business et.al [25] attempted to uncover the impact of collaborative environment affects the way in which enterprise risks planning, collaborative decision making of supply chain should be assessed and the impact of these enterprise partners and collaborative execution of all supply chain risks on the design of effective risk management processes in the success of collaboration. They have programs. The second stage focuses on the issues that used an empirical analysis (confirmatory factor analysis must be addressed in formulating financial reporting and structural equation modelling using AMOS) to validate concepts that address enterprise risk across the supply their research paradigm through a questionnaire survey chain in order to provide investors and other stakeholders on the customers of a textile company. The major finding with an understanding of the viability and security of the was it is better to engage in long term collaboration, value chain. depending on the success of current collaboration and Kovacs Gyongyi [18] made a framework of environmental it will help to make investment decisions for the partners. strategies, and links this to alternative approaches in Usha R [26] identified that nai¨ve forecasting is no longer supply chain collaboration. From an environmental cost efficient. Supply Chain (SC) members have found demand perspective, the focus was given on the it very important to exchange relevant information that communication of expectations and demand for corporate will help improve accuracy of demand forecasting. The environmental responsibility toward the corporation, and author analyses the trade-offs in the information from the corporation to its suppliers. Togar M. exchange using an Analytic Hierarchy Process (AHP) Simatupang et al [19] proposed an integrative framework model. The model is then implemented based on case for supply chain collaboration which is based on the studies conducted in two manufacturing firms. The AHP reciprocal approach, which can capture the interaction model ranks available information in terms of their phenomenon of different features of collaboration in contributions to improve forecast accuracy, and can attaining overall supply chain performance and found that provide vital clues to SC partners for preparing a collaborative supply chain framework is composed of exchangeable data. From the case studies using AHP five connecting features of collaboration, namely model, it was proved that using the preferred SC data, collaborative performance system, information sharing, the firms could enhance forecasts accuracy. This in turn decision synchronization, incentive alignment, and can help the firms to make decisions on SC collaborative integrated supply chain processes. arrangements for information exchange. Tim Mclauren Togar M. Simatupang et al [20] attempted to apply the et.al [27] analyzes the alternatives for supply chain Theory of Constraints approach to overcome difficulties

Special issue November 2015 Page 239 Primax International Journal of Commerce and Management Research Online ISSN: 2321-3612 collaboration and presented a framework for of collaboration on organizational performance were understanding the expected costs and benefits of each subsequently developed. type of collaboration system. These costs include not Daesoo Kim [43] put forward a concept of harnessing only the total cost of ownership of the system, but also the power of process chain, a new paradigm toward the partnership opportunity cost – the cost of being tied achieving global optimization of a common performance to a partner due to system inflexibility. The benefits of goal for a total supply chain even after much improvement collaborative SCM identified were process, inventory, and in supply chain visibility and collaboration. Process chain product cost reductions as well as increased cycle is a flexible and efficient chain, network, or web of related times, service levels and market intelligence. firms that work together to achieve global optimization Theodore P. Stank et.al [28] identified the automatic of a common performance goal for a total supply chain. replenishment systems that restock inventory based on The major objective of process chain is to achieve actual demand triggers rather than relying on long-range globally optimal performance of a common goal for the forecasts and layers of safety stock, which was total supply chain, not a local optimum from an enterprise implemented in a great number of firms in recent years. (firm) focus, while avoiding and effectively managing Now these same firms are taking supply chain inherent conflicts. K. Arshinder et al [44] examined about cooperation to another level through involvement in the supply Chain (SC) members and their dependency collaborative planning/forecasting/ replenishment on each other for resources and information, and found (CPFR). It also explained about current levels of that this dependency has been increasing in recent times involvement in cross-organizational collaboration among due to outsourcing, globalization and rapid innovations firms utilizing automatic inventory replenishment. The in information technologies. Yossi Aviv [45] conducted results provide were highly positive for associations studies on the potential benefits of collaborative between high levels of CPFR and implementation of forecasting (CF) partnerships in a supply chain that operating process change and information system consists of a manufacturer and a retailer. In order to capabilities where as it is found to be very weak in the reflect the reality in production environments, there association between CPFR and effectiveness in proposed a scorecard that captures inventory achieving operational performance goals. Theodore P. considerations, production smoothing, and adherence- Stank et.al [29] found through their studies that to-plans. In addition to this there presented a prescriptive collaboration with external supply chain entities convex- cost production planning model for the influences increased internal collaboration, which in turn manufacturer, and a replenishment model for the retailer. improves service performance. This relationship may be The author used their integrative reference model to study the key to helping managers understand how best to the potential benefits of CF partnerships. It was found facilitate behavioural change. The implication is that that the benefits of CF depend on the following key collaborating with customers and suppliers is a first step characteristics of the supply chain such as the relative toward effective collaboration within the firm. explanatory power of the supply chain partners, the supply side agility, and the internal service rate. CF is Xu, K et. al[32] made an extensive study on demend expected to bring high benefits to the supply chain when collaboration since industry leaders find it as an important the manufacturer has the largest relative explanatory tool for supply chain management. Its greatest power. But quite disappointingly, in these cases a CF significance beyond the sharing of point-of-sale and partnership does not appear to be valuable to the forecast information stems from its potential to allow manufacturer. When the retailer is the dominant observer supply chain partners to extract private market of market signals, CF typically yields a “win-win” information from each other for more effective planning outcome. In order to effectively act upon the information and better supply chain performance. Through this study exchanged via CF, the supply side needs to be sufficiently there proposed a simulation framework based on actual agile. business processes is developed to investigate the underlying drivers of demand collaboration and the Guangqian Peng et al[46] conducted a study to test the inherent risks and benefits of such collaboration. relationships between information exchange benefits and Chonticha Mathuramaytha [42] examined the company performance, and the mediating effect of supply consequences of SCC on organizational performance. chain compliance on this relationship. Analysis was done The research question was how SCC affects firm on 165 buying companies and 96 suppliers by partial outcomes. The concept proposed was that SCC has least square (PLS) path modeling and identified five positive effect (such as cost reduction and operational company characteristics, including company size, flexibility) on firms and that the effect is a long-term effect company age, company type, quality standard and variable measurement scales to measure the effect implemented, and administrative level of a as control variables in the model. The paper extends understanding

Special issue November 2015 Page 240 Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604 on the relationships between perceived communication measures of manufacturing performance using a sample benefits, supply chain compliance, performance and of plants in the package printing industry. company characteristics. Managerial implications are Conclusion & future scope of research work generalized for buyers and suppliers respectively. Judith M W et al [47] examined the characteristics, Most recently, the supply chain collaboration has requirements, benefits, and barriers to various become an important area because organizations have collaborative relationships and proposed a typology of realized that even smaller suppliers are important to be collaborative approaches. The exploratory interviews with ahead in this competitive environment, as disruptions 21 managers from ten different manufacturers and from their end could potentially disrupt the entire supply retailers led to develop a typology of three types of chain. And hence it demands close attention to issues collaborative approaches (collaborative transaction such as effective ways to streamline processes and gain management; collaborative event management; and greater visibility into their operations in order to lower collaborative process management. Managers can use the overall costs. Whilst some research has begun to the typology to assess current collaborations and seek examine the functionality of collaboration in supply chain ways to improve current collaborative efforts. Managers through Joint Economic Lot Sizing model (JELS), secure can also use the typology to develop collaborative supply chain protocols and Secure Collaborative strategies across a broad spectrum of relationships in Planning, Forecasting and Replenishment (SCPFR) order to determine which type of collaboration best fits models, integration of collaborative planning and each individual business relationship. T.M.Simatupang optimization of supply chains, risk sharing under random et al [48] identified that in order to ensure that the yields etc. But little attention has been paid to areas participating members in SC collaboration are like stochastic benefit sharing models in different progressing on the right track of creating the best-in- collaboration schemes, collaboration between parties in class practice is to conduct benchmarking. two subsequent stages, multi party collaborated supply Benchmarking stimulates collective learning for chain and collaboration at different stages of supply chain performance improvement that brings benefits to all planning. Factors such as cultural backgrounds of the participating members, hence there developed a members of a supply chain can be tested to see if these benchmarking scheme for supply chain collaboration that have an impact on information sharing among supply links collaborative performance metrics and collaborative chain partners [25]. Since much of the modern enablers. Umit S. Bititci et al [49] discussed collaborative collaboration among geographically separated firms relations and the factors that affect its formation and takes place in virtual space, it will be a new arena to intensity in supply chains and developed a theoretical explore the role of technologies like cloud computing, framework/ model that draws the relations and Internet of Things etc. Comparison between pre adoption interrelations between the different factors and their effect status and post adoption results, the impact of IT tools over collaborative potentiality and intensity. Friday Derek in collaboration and standardization practices and et al [50] investigated the effect of trust and commitment harmonization of channels for collaboration will be an on vertical collaboration and physical distribution service interesting field of research [1]. Another interesting area quality in the soft drinks’ demand chains in Uganda for investigation is the relationships at the sub- predictor of physical distribution service quality however, dimensional level between supply chain collaboration, was vertical collaboration and all the study variables collaborative advantage, and performance. Such analysis accounted for 13% of the variation in physical distribution would provide more interesting and useful results for service quality. researchers and practitioners [10]. Future scope in collaboration research can be identified in developing Stephan Vachon et al [51] by using a survey of North multi criteria optimization models for establishing American manufacturers examined the impact of contributions to be made by compatible partners in terms collaborative green supply chain practices (GSCP) on of resources sharing for certain joint product development manufacturing performance. Collaborative GSCP were and supply [23]. Achieving optimal balance of defined to include the interactions between organizations collaboration and risk management [27] in sharing in the supply chain, including such aspects as joint proprietary information, potential differences in environmental goal setting, shared environmental manufacturer and retailer perceptions regarding the planning, and working together to reduce pollution or impact of collaboration initiatives like CPFR are also good other environmental impacts. It was found that these areas of research. Even though there are instances that practices can be directed either upstream toward collaboration is moving beyond the expected stage of suppliers or downstream toward customers. The acceptance as companies and suppliers adjust to the influence of collaboration in each direction was new realities of economics, trade and finance, true empirically assessed for multiple objective and perceptual collaboration is still relatively rare.

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Reference chains: gearing for partner-enabled market knowledge creation. MIS Quarterly 29 (1), 145–187 [1] Egide Karuranga, Jean-Marc Frayret, Sophie D’ Amours “Measurements and determinants of [14] Mei Cao, Qingyu Zhang Supply chain collaborative supply chain collaboration”CIRRELT 2008 advantage: A firm’s perspective [2] A.S. Belenky “Cooperative games of choosing [15] Richard Pibernik , Yingying Zhang, Florian partners and coalitions in the market Kerschbaum , Axel Schropfer “Secure collaborative place”Mathematical and computer modeling supply chain planning and inverse optimization – 36(2002) 1279-1291 The JELS model” European Journal of Operational Research 208 (2011) 75–85 [3] Stadtler, H., 2009. A framework for collaborative planning and state-of-the-art. OR Spectrum 31 (1), [16] Yongsheng Liu and Shasha Wang “Research on 5–30 Collaborative Management in Supply Chain Crisis” [4] Yu, Y., Huang, G.Q., 2010. Nash game model for [17] Yonghui Fu, Rajesh Piplani , Robert de Souza , optimizing market strategies, configuration of Jingru Wu “Multi-agent enabled modeling and platform products in a Vendor Managed Inventory simulation towards Collaborative inventory (VMI) supply chain for a product family. European management in supply chains”. Journal of Operational Research 206 (2), 361–373. [18] Kovacs Gyongyi, “Supply chain collaboration for [5] “Building strategies for the new decade” -The sustainability” HANKEN,Swedish School of evolution of the new value chain by Capegemini on Economics and Business Administration, Helsinki 23-02-2011 [19] Togar M. Simatupang, Ramaswami Sridharan “An [6] Nagarajan, M., Sosic, G., 2006. Game- Theoretic integrative framework for supply chain collaboration” Analysis of Cooperation among Supply Agents: The International Journal of Logistics Management Review and Extensions. European Journal of Vol. 16 No. 2, 2005 pp. 257-274 [20] Togar M. Operational Research Simatupang, Alan C. Wright, Ramaswami Sridharan “Applying the Theory of Constraints to [7] Brandenburger, Adam, (2007). Cooperative Game Supply Chain Collaboration” Supply Chain Theory: Characteristic Functions, Allocations, Management: An International Journal, Vol. 9 No. Marginal Contribution. Stern School of Business. 1, 2004. New York University [21] Mathew B Myres “The many benefits of supply chain [8] “Supply Chain Analysis in the eBusiness Era” collaboration” Supply chain management review edited by David Simchi- Levi, S. David Wu and Zuo- (Nov 2010) Jun (Max) Shen, to be published by Kluwer. http:/ /www.ise.ufl.edu/shen/handbook/ cachon [22] Steve G. Sutton, Georgia Smedley, Vicky Arnold @wharton.upenn.edu and http://opim.wharton. “Accounting for Collaborative Supply Chain upenn.edu/˜cachon [email protected] Relationships: Issues and Strategies” The and http://www.netessine.com International Journal of Digital Accounting Research Vol. 8, N. 14, 2008, pp.1-22 [9] Barratt M., (2004), “Understanding the meaning of collaboration in the supply chain”, Supply Chain [23] Bikram K. Bahinipati , Arun Kanda, S.G. Deshmukh Management: an International Journal, Vol. 9, No.1, “Horizontal collaboration in semiconductor pp30-42 manufacturing industry supply chain: An evaluation of collaboration intensity index” Computers & [10] Mei Cao, Qingyu Zhang “Supply chain collaboration: Industrial Engineering 57 (2009) 880–895 Impact on collaborative advantage and firm performance” Journal of Operations Management [24] Alain Yee-LoongChong, Keng-BoonOoi, 29 (2011) 163–180 AmrikSohal “The relationship between supply chain factors and adoption of e- Collaboration tools: An [11] Simatupang, T.M., Sridharan, R., 2002. The empirical examination” Int. J. Production collaborative supply chain. International Journal of Economics 122 (2009) 150–160 Logistics Management 13 (1), 15– 30. [25] Usha Ramanathan, Angappa Gunasekaran “Supply [12] Bernhard J. Angerhofer, Marios C. Angelides “A chain collaboration: Impact of success in long-term model and a performance\ measurement system partnerships” Int.J.ProductionEconomics for collaborative supply chains” Decision Support Systems 42 (2006) 283– 301 [26] Usha Ramanathan “Aligning supply chain collaboration using Analytic Hierarchy Process” [13] Malhotra, A., Gasain, S., El Sawy, O.A., 2005. Omega Absorptive capacity configurations in supply

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[27] McLaren, T., Head, M., Yuan, Y. (2002). “Supply [29] Stank, Theodore P., Scott B. Keller, and Patricia J. Chain Collaboration Alternatives: Understanding the Daugherty (2001), "Supply Chain Collaboration and Expected Costs and Benefits”, Internet Research: Logistical Service Performance," Journal of Electronic Networking Applications and Policy, Business Logistics, Vol. 22, No. 1, pp. 29-48. 12(4), 348-364. Performance: The Role of Collaboration in the [28] Stank, Theodore P., Patricia J. Daugherty, and Chad Supply Chain” Journal of Operations Management. W. Autry (1999), "Collaborative Planning: Supporting Automatic Replenishment Programs," Supply Chain Management, Vol. 4, No. 2, pp. 75- 85.

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THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY IN HSBC BANK IN JAFFNA DISTRICT

Sivapragasam Sivanenthira1 Vasanthakumar Kumaradeepan2 Abstract The key objective of the research work carried out by me is assessing the quality of the service offered by the banks present in jaffna and other districts administrative districts. Also, this report attempts to understand the relationship between service quality and customer satisfaction dimension. Employed to evaluate the service quality Offered by the banks, the key elements evaluated are; assurance, empathy, responsiveness, tangibility and reliability. To carry out the research, primary data as well as secondary data was made use. The primary data was mainly collected via self-administered questionnaires. 100 questionnaires were distributed amongst the sample in the selected areas; the sample was selected based on random sampling method. Precise response was received from 100 questionnaires for the 28 item measure on the services offered by their banks. Correlation method is used assess the relationship amongst the variables. Correlation results indicated positive results amongst individual service quality dimensions & customer satisfaction The research proves responsiveness & empathy are two main key drivers of customer satisfaction followed by assurance, reliability and tangibility. More over the research goes on to prove over all increment in service quality would increase customer satisfaction. Key words: Customer Satisfaction. Customer Loyalty, service Quality

Background of Study will support the bank to give more world class service to HSBC bank is the leading bank in Sri Lanka gives its their customers and improve the good will of the excellent services to their customers more than 10 customers. Below this research has given few related Decades. HSBC bank Understanding the changing needs issues makes customer dissatisfaction and it will lead of customers according to their age and level of income to customer complain and HSBC banks good will has the bank created many accounts and loans and serve been dropped. the customers in many ways. Problem Identification at HSBC Bank Nowadays many banks realize that all advantages, which In this era banks has many choices in banking and they want to establish through their core products are competing with other competitor banks in order to quickly, as others banks has the same products being sustain in their banking industry on only in Sri Lanka offered. However, since it’s a well-known fact that no but globally too. Bank customers have more choices in business can exist without customers the important how, when and where they can to do their banking today strategy is focused on providing the high-quality service and them try to get their lives more easily by banking. for the customer. In today increasingly competitive (Phone banking/internet banking/palm top banking / door environment, quality service and customer satisfaction to door banking/ express banking/ day and night are critical to corporate organizations. Delivering high banking). Changing bank is easy and the engagement quality service is linked to increased profits, cost savings with one specific bank is not life-long anymore. and corporate image. Customer satisfaction is the route Nowadays banks facing many difficulties to sustain in to sustained high performance. Organizations should be the industry and to retain its customers with them. There aware of the fact that customer dissatisfaction leads to are many issues we have identified and from those issues defection and long term losses. Ensuring quality main issue is the customer service level is dropping in customer service is everybody’s business in the current the banking industry including HSBC bank. The HSBC banking industry.Recent years HSBC banks customer bank is providing various facilities to consumers to service level has been reduced compare to previous satisfy them. However, it does not satisfy the years and customers complain regarding service level consumers. Service quality of the bank is also influenced of the staffs and other issues has been increased. In on the customer satisfaction and customer loyalty. This order to re gain HSBC banks world class committed research has listed main reason for the customer service customer service levels in future this research. This Will level drop of HSBC bank. Need to improve customer helps to improve the customer service level and give service level and customer satisfaction. some valued ideas and answers as well. This research

1. Faculty of Management Studies and Commerce, University of Jaffna. 2. Faculty of Management Studies and Commerce, University of Jaffna

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Research Objectives Reliability and Validity • To find out the impact of service quality on customer Nunnally (1978) gives the common guideline for the alpha satisfaction of HSBC bank. standard of reliability: a) early stage of research • To find out the impact of service quality on customer alpha=0.5-0.6 b) basic research alpha, alpha= 0.7- 0.8, loyalty of HSBC bank. and c) applied settings, alpha= 0.8-0.9.The reliability of the questionnaire was tested using Cronbach’s Alpha • To identify the relationship between service quality (a) measurements. The reliability coefficients (a) of each and customer satisfaction of HSBC bank. construct or latent variable are given in the table. • To identify the relationship between service quality and customer loyalty of HSBC bank. Reliability Statistics Theoretical Review Cronbach's Alpha N of Items

Customer satisfaction .835 28 In line with Tsoukatos and Rand (2006), customer satisfaction is a key to long-term business success. To KMO and Bartlett's Test protect or gain market shares, organizations and banks Kaiser-Meyer-Olkin Measure of need to outperform competitors by offering high quality Sampling Adequacy. .526 product or service to ensure satisfaction of the customers. In proportion to Magesh (2010), satisfaction means a Bartlett's Test of Sphericity feeling of pleasure because one has something or has Approx. Chi-Square 798.958 achieved something. df 378 Service Quality Sig. .000 Service Quality can be define as “the difference between customers’ expectations for service performance prior The Kaiser-Meyer-Olkin (KMO) has a measure of 0.526, to the service encounter and their perceptions of the which is above the threshold of 0.5 (Field, 2005). The service received (Asubonteng et al 1996) Service quality Bartlett’s test is signi?cant in this study with 798.958 is the subjective comparison that customers make ( p-value , 0.001). Therefore, the KMO value of 0.526 between the qualities of the service. That they want to and signi?cance of Bartlett’s statistic con?rm the receive and what they get (Gefan 2002) Service quality appropriateness of the analysis for the data set. is determined by the differences between customer’s expectations of the services provider’s performance and Data Analysis their evaluation of the services they received Correlation analysis (Parasuraman et al 1985, 1988) Quality Satisfaction Loyalty Customer Loyalty quality Pearson 1 .678 .765** "Service loyalty refers the degree to which a customer Correlation exhibits repeat purchasing behavior from a vendor / Sig. (2-tailed) .000 .003 service provider, possesses an optimistic attitudinal N 100 100 disposition toward the service provider, moreover deems satisfaction Pearson using only this provider when a need for this service Correlation 1 .668 arises" (Gremler and Brown, 1996, cited in Caruana, Sig. (2-tailed) .000 2002, p 813). N loyalty Pearson 100 Research Methodology Correlation 1 Sample size Sig. (2-tailed) Sample size refers to the number of elements to be N included in the study (Malhothra, 2007). Once the target **. Correlation is significant at the 0.01 level (2-tailed). population of the study is defined, it is required to decide the sample size for the study. Number of sampling There is a positive relationship between service quality elements in the present study consisted of in retail and customer loyalty .765 at 0.01 significant level. And banking services.There are 100 customers were there is a positive relationship between customer surveyed to collect data to identify the in retail banking satisfaction and customer loyalty .668 at 0.01 significant services. level

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Loyalty Tangibility Reliability Responveness Empathy Assurance

Pearson Correlation 1 .678 .567 .675 .685 .568 Customer Sig. (2-tailed) .000 .001 .005 .009 .009 loyalty N 100 100 100 100 100 ** ** * Pearson Correlation 1 .486 .444 .212 .249 tangibility Sig. (2-tailed) .000 .000 .090 .046 N 100 100 100 100 ** * Pearson Correlation 1 .459 .281 .164 reliability Sig. (2-tailed) .000 .023 .192 N 100 100 100 ** Pearson Correlation 1 .344 .240 responveness Sig. (2-tailed) .005 .054 N 100 100 ** Pearson Correlation 1 .323 empathy Sig. (2-tailed) .009 N 100 Pearson Correlation 1 assurance Sig. (2-tailed) N

There is a significant relationship between customer loyalty and tangibility .678 at significant level at 0.01 and there is a significant relationship between customer loyalty and reliability .567 at significant level at 0.01, There is a significant relationship between customer loyalty and responsiveness .675 at significant level at 0.01, There is a significant relationship between customer loyalty and empathy .685 at significant level at 0.01 and There is a significant relationship between customer loyalty and assurance .568 at significant level at 0.01 Regression analysis Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .379 .544 .516 .40383 a. Dependent Variable: loyalty b. Predictors: (Constant), satisfaction, quality There is a significant impact of service quality and customer satisfaction on customer loyalty 51.6% at 0.01 significant levels. Hypotheses testing There is a positive relationship between service quality Correlation 765 at 0.01 Accepted and customer loyalty . analysis significant levels.

there is a positive relationship between customer Correlation .668at 0.01 Accepted satisfaction and customer loyalty analysis significant level

There is a significant impact of service quality and Regression 51.6%at.01 Accepted customer satisfaction on customer loyalty analysis significant level

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Suggestions for further research Bell, K. R., & Scobie, G. E. W. (1992). Multimedia, • The effectiveness of any bank are influenced greatly technology, banks and their customers, International by consumer behaviors. Customers who are a Journal of Bank Marketing, Vol. 10 Iss: 2, pp.3 - 9 resources common to all banks. Effective’s service Butz,H. E., Jr, & Goodstein, L.D. (1996). Measuring quality helped to create a customer satisfaction and customer value: gaining the strategic advantage, journal customer loyalty. That encourages, support and of Organizational Dynamics, Vol. 24: 63-77. sustained improvement in customer satisfaction. The following suggestion recommended for future Cowles, D., & Crosby, L.A.(1990) “Consumer researches. acceptance of interactive media”, The Services Industries Journal, vol. 10, no. 3, pp. 521-540. • In this study only Jaffna district bank is considered to develop the analysis and findings. There are Cronbach, L. J. Meehl, P. E. (1955). Construct Validity millions of customers and banks in Sri Lanka. In future in Psychological Tests. Psychological Bulletin, 52(July): studies could consider almost all customers and 281–302. banks in the others of district. Caywood, C. L, Schultz, D. E., & Wang, P. (1991). A • Finding of this study analyzed only the customers of Survey of Consumer Goods Manufactures, New York, Jaffna district bank. But there are various types of NY: American Association of Advertising Agencies. banks and different types of customers in Jaffna and other district. So, this analysis will helpful to conduct Dr, Fhazeela Zammel Ashan, Shivany,S (2010), Impact the further researcher including all the customers in of Integrated mobile Marketing communication on bank of Sri Lanka. Customer Perceived Value of services, and the contribution of the technology as a moderator, special • Even through various factors determine the customer application to the Private Commercial banks in Sri Lanka, satisfaction, if is considered as to how the other published master thesis submitted to the faculty of factors influence on the satisfaction and loyalty of management and finance university of Colombo. the customer of the bank in this analysis. Therefore, the analysis in relation to other factors that determine Dr, Fhazeela Zammel Ashan, shivany, S (2010) “Impact the customer loyalty must be considered. of Integrated mobile marketing communication on • There are so many factors influencing service quality. customer perceived value of services: special application Service quality has ten important factors. But, this to Sri Lankan banking sector” (2010), International annual research only considered five variables; tangibility research conference at the faculty of management and reliability responsiveness assurance and empathy. finance, University of Colombo. Therefore, in future, to decide to conduct this Shivany,S (2011), Impact of Integrated mobile Marketing research, various other factors should also be taken communication on Customer Perceived Value of services, into consideration. and the contribution of the technology as a moderator, Conclusion special application to the Private Commercial banks in Sri Lanka, in the international conference on Leading This study concluded that there is a positive relationship beyond Horizon: engaging future organization, pages between independent variables and dependent variable 336-353. and Service quality and customer satisfaction have impact on Customer loyalty. As far as bank customers Day, G.S. (1998). Organizing for Interactivity, Journal of are concerned. They appear to be quite satisfied with Interactive Marketing 12(1), 47–53. their service. If we implement the recommendations Durkin, M., Howcroft, B., O’Donnell, A., & Mc Cartan- made above the service could be further enhanced for Quinn, D. (2003), “Retail bank customer preferences: the maximum satisfaction of bank could obtain personal and remote interactions”, International Journal competitive advantage and come to a higher profitability. of Retail & Distribution Management, Vol. 31 No. 4, pp. REFERENCE 177-89. Angelis,V.A., Lymperopoulos,C., Dimaki,K.(2005). Duncan, T., & Moriarty, S. (1998). A Communication- Consumers Perceived Value for private and state based Marketing Model for Managing Relationships, controlled Hellenic Bank, Journal of financial Service Journal of Marketing 62(2): 1–13. Marketing, vol9, p360-374. Dewhirst, T., & Davis, B. (2005). Brand strategy and Burgetz, B. (1992). Satisfied customers: the business integrated marketing communication (IMC), Journal of challenge, CMA Magazine, 66 No. 1, February, p. 10. Advertising, 34(4): 81-92.

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Duncan, T., & Moriarty, S. (1998). A Communication- De Ruyter, K., Wetzels, M., Lemmink, J., & Mattson, J. based Marketing Model for Managing Relationships, (1997). The dynamics of the service delivery process: a Journal of Marketing, 62(2): 1–13. value-based approach, International Journal of Research in Marketing, Vol. 14 No. 3, pp. 231-43. Duncan, T.R., & Moriarty, S.E. (1999). Brand relationships key to agency of the future, Advertising Devlin, J.F., and Ennew, C.T. (1997). “Understanding Age, 70 (10):44. competitive advantage in retail financial services”, The International Journal of Bank Marketing, Vol. 15 No. 3, Duncan, T.R., Caywood, C.L., & Newsom, D.A. (1993). pp. 73-82. Task force report on integrated communications, Armonk, NY: IBM. Davenport, T. H., Jeanne, G., Harris, and Ajay, K. (2001). How Do They Know Their Customers So Well?, Sloan Duncan, T.R., & Mulhern, F. (2004). In Duncan, T.R. Management Review, 42 (2), 63-73. (2005). IMC in Industry: More talk than walk, Journal of Advertising, 34(4): 5-9.

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