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e-commerce: Impact of Social and Cultural Factors and the Indian Scenario
Dr. M V Ananthakrishnan
Interactive Technologies
Tata Consultancy Services,
Mumbai 400 066
Abstract
The traditional buying and selling patterns are analysed on the basis of social and cultural factors. ... The Indian buying patterns are then analysed to highlight the cultural and social issues. Finally, an attempt has been made to map the Indian traits onto an online version, to point out the issues that possibly inhibit the spread of online marketing and purchase.
1 Introduction
Independent studies carried out, in the late 90s, by McKinsey and DeloitteTouché, internationally well known management consultants, on 100 and 400 companies respectively, show that "5-6% of the failure of re-engineering projects were due to cultural problems". A detailed analysis of the causes brought out the following failings:
a) Work being done by professionals across the globe
b) Work being done at client site by professionals across cultures
c) Communication styles between clients and vendors
This called for an urgent enquiry into cultural and cross-cultural communication issues…if globalisation of commerce was to succeed across business and nations. Issues that needed immediate attention were:
a) An understanding of business transactions patterns in various countries
b) An understanding of cultural and social factors influencing business on the web
c) A study of the factors influencing cross-cultural communication
d) Design and development of natural interfaces based on style, culture and methodologies of transacting business
2. Traditional Commerce vis-à-vis e-commerce
Commerce, by definition, is "a negotiated exchange of valuable products or services between at least two parties and include all activities that each of the parties undertake to complete the commercial transaction" (1) . ... e. ...
e-commerce is just a successor to the EDI (Electronic Data Interchange) of the West, used invariably for automobile components and supermarkets. It tries to emulate the traditional transaction in an electronic transaction scenario.
But, then, where is the line divide in terms of a choice: Traditional or e-commerce?
Items Style
Products that people desire to touch,
feel, smell or examine Traditional
Products that people buy, based
on recommendations,
personal experience (Books, CDs) e-commerce
Traditional avenues for shopping like shopping malls, departmental stores, layouts, models and housing schemes are the in-thing for buyers and e-commerce may not be able to emulate it and give the necessary ambience. ...
However, there are avenues that could be more effective on the net e. ... 1 The Western Scenario
UNITED STATES The principal drivers of transactions in the US are:
a) Retention of customers, revenue generation through customer acquisition and retention
b) Speed of efficiency of service (over 80% of GDP is generated through varied services!
Approximate Word count = 2125
Approximate Pages = 8.5
(250 words per page double spaced)
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