International Review of Management and Marketing   
Vol. 2, No. 1, 2012, pp.43-51 
ISSN: 2146-4405 
www.econjournals.com 

 
Internet Marketing Usage by Small Indian Entrepreneurs:   

An Exploratory Study of Punjab 
 

Raj Kumar Gautam 
Punjabi University Regional Center, Mohali, Punjab, India. 

Email: raj5310@gmail.com  
 

 

ABSTRACT: Information technology tools such as internet and web marketing plays a significant 
role in expansion of marketing operations. The paper aims at to examine the awareness level, 
advantages associated with internet marketing and internet marketing problems faced by the small 
entrepreneurs of Punjab. A number of statements indicating the advantages and problems associated 
with internet marketing have been developed and the respondents were asked to express their level of 
agreement/disagreement with these statements on five-point Likert scale. Kruskal-Wallis test has been 
applied to know the significant differences among the respondents relating to different industries, age 
and turnover groups with respect to these statements. The test has been applied at assumed p-value 
=0.05. The statements with less than 0.05 p-value are considered significant and those with p-value 
more than the assumed value are considered to be insignificant. The findings reveals that units relating 
to bicycle and bicycle parts and leather and leather products are not using internet for the purpose of 
marketing. It has also been found that majority of the units consider that internet marketing is 
advantageous to them.  

Keywords: Internet marketing; Small entrepreneurs; Information technology; Viral Marketing 
JEL Classifications: M; M30; M31; M39 
 
 
1. Introduction 

Companies using modern marketing techniques such as internet marketing, viral marketing, 
search engine marketing and e-mail marketing will be more successful in meeting the competition. A 
web based marketing campaign allows the organizations to create a customer information system, 
which is linked to its customers profiles, thus, the ability to target potential sales, is a powerful tool, 
enabling the organization to give people what they want rather than applying a generalist advertising 
campaign that may not reach its target audience (Nicolas, 2006). Trim (2002) revealed that 
relationship marketing has evolved and is playing an integral part in the formation of partnership 
arrangement in an era characterized by network and technology utilization. Harkar and Akkeren 
(2002) viewed the benefits related to new technology, such as shortening the product life cycle and 
changing standards. 

Joseph et al. (2001) viewed that the internet/ web marketing became dominating on the 
business landscape. Companies began to transform domestic and global markets by shaping and 
reshaping relationships in the supply chain and by creating systemic change in the way consumers 
shop, organizations buy, prospects are reached, transactions are completed, customers are served and 
business is conducted. E-Commerce is clearly riding a steep and heady growth curve. The World Wide 
Web ignores geographic and political boundaries and temporal restrictions. Companies of all size and 
structures are discovering opportunities to save costs, especially for the processing and delivery of 
digital goods. Even for many tangible goods, cost reductions are palpable as the new technology 
promise closer and faster connections with suppliers and customers. In the web world, consumers can 
search much more thoroughly and efficiently.  

 Website content ranking and grouping can allow straightforward access to web- site 
content, by making frequently required content the most accessible and by grouping related content 
for ease of identification. From a website marketing prospective the more accessible website content 



International Review of Management and Marketing, Vol. 2, No.1, 2012, pp.43-51 
 

44  

relating to product and services offered, the more likely that such product and services will be 
purchased by the consumers (Taylor and England, 2006). The objectives of the Study are: 

 To examine the awareness level and usage of information technology tools by the small 
manufacturers. 

 To study the perception of small entrepreneurs regarding advantages of using internet 
marketing. 

 To find out the internet marketing problems being faced by the SSIs. 
 
2. Research Methodology  

For the purpose of present study, selected SSI units manufacturing textiles, bicycle and 
bicycle parts, leather and leather products, and food products and beverages in the state of Punjab have 
been considered. The planned sample of 200 units comprised 50 small-scale units each selected from 
manufacturing areas such as textiles, leather and leather products, bicycle and bicycle parts, and food 
products and beverages. However, as the data provided by the respondent entrepreneurs of 27 units 
was not complete, therefore, they were excluded from the final analysis. Thus, the final sample 
comprised of 173 SSI units of Punjab. The study is based on primary data. The primary data has been 
collected by a structured non-disguised and pre-tested questionnaire. The data has been analyzed on 
the basis of three variables, viz. Industry, Age of the units and Turnover of the units. Industry-wise 
analysis has been done on the basis of four industries, viz. textiles (TX), bicycle and bicycle parts 
(BBP), food products and beverages (FPB), and leather and leather products (LLP), and food products 
and beverages (FPB). On the basis of age, units have been categorized into three age-groups, viz. A1 
(up to 10 years), A2 (10 to 20 years), and A3 (above 20 years). Turnover-wise units have been 
classified into three categories, that is T1 (up to Rs. 2 crore), T2 (Rs.2 to 4 crore) and T3 (above Rs. 4 
crore). 

 
3. Analysis and Discussion 

The sample comprising 173 units includes 43 textiles units, 46 bicycle and bicycle parts units, 
43 food products and beverages units, and 41 leather and leather products units. It has been observed 
that 82 units fall into age group A2, 54 units belong to A1 and 37 units relate to age group of A3. It 
has also been seen that 66 units relate to turnover-group T1 followed by group T3 (65) and T2 (42).  

Kruskal-Wallis test has been applied to know the significant differences among the 
respondents relating to different industries, age and turnover groups with respect to these statements. 
The test has been applied at assumed p-value =0.05. The statements with less than 0.05 p-value are 
considered significant and those with p-value more than the assumed value are considered to be 
insignificant. The data obtained from the respondents has been presented in Tables 1, 2 and 3. 
Information technology usage by Small Manufacturers 
(1) Awareness about Information Technology Tools  

The respondents of the surveyed units were asked to specify their awareness about various 
information technology tools available in the market. The responses of the respondents have been 
presented in the Tables 1, 2 and 3.  

  
Table 1. Awareness about Information Technology (Industry-wise mean score) 

   Tools      TX       BBP   FPB     LLP     Total    
(a) Internet marketing 40 

(93.0) 
43 

(93.5) 
41 

(95.3) 
40 

(97.6) 
164 

(94.8) 
(b) Viral marketing 4 

(9.3) 
0 

(0) 
2 

(4.7) 
0 

(0) 
6 

(3.5) 
(c) Search engine  marketing 2 

(4.7) 
0 

(0) 
9 

(20.9) 
2 

(4.9) 
13 

(7.5) 
(d) E-marketing 15 

(34.9) 
8 

(17.4) 
3 

(7.0) 
28 

(68.3) 
54 

(31.2) 
(e) Any other 1 

(2.3) 
1 

(2.2) 
1 

(2.3) 
1 

(2.4) 
4 

(2.3) 

    N = 43 46 43 41 173 



Internet Marketing Usage by Small Indian Entrepreneurs: An Exploratory study of Punjab 45 

  It is clear from the above Table that most of the respondents from all the units surveyed 
(94.8%) are aware of ‘internet marketing’. This is followed by ‘e-marketing’ (31.2%). Industry-wise 
analysis indicates that relatively higher proportion of  respondents (68.3%) belonging to leather and 
leather products industry are aware of ‘e-marketing’ in comparison to the respondents relating to textiles 
(34.9%), bicycle and bicycle parts (17.4%), and food products and beverages (7%). The table further 
shows that a large majority of the respondent units belonging to different industries are not aware of the 
concept of ‘viral marketing’ and ‘search engine marketing’. 

In brief findings reveal that large majority of the units are aware of the ‘internet marketing’. 
However, proportionately higher number of units belonging to leather and leather products is aware of 
‘e-marketing’ as compared to other surveyed industries.  
 Table 2 shows the age-wise analysis of the respondents regarding the awareness about 
information technology tools. 
 

Table 2. Awareness about Information Technology Tools (Age-wise mean score) 
   Tools A1 A2 A3 Total 

(a) Internet marketing 51 (94.4) 
78 

(95.1) 
35 

(94.6) 
164 

(94.8) 

(b) Viral marketing 1 (1.9) 
4 

(4.9) 
1 

(2.7) 
6 

(3.5) 
(c) Search engine  
      marketing 

4 
(7.4) 

8 
(9.8) 

1 
(2.7) 

13 
(7.5) 

(d) E-marketing 12 (22.2) 
27 

(32.9) 
15 

(40.5) 
54 

(31.2) 

(e) Any other 3 (5.6) 
0 

(0) 
1 

(2.7) 
4 

(2.3) 
     N =  54 82 37 173 

  
 The table reveals that more than 94 per cent units relating to all the three age groups are aware 
of the concept of ‘internet marketing’. However, a noticeable number of units belonging to different 
age groups are also aware of ‘e-marketing’, the percentages being 22.2 per cent for A1, 32.9 per cent 
for A2 and 40.5 per cent for A3. Majority of the respondents from all age groups are not aware of the 
concept of ‘viral marketing’ and ‘search engine marketing’.    
              In nutshell, age group-wise findings reveal that relatively  higher number of units relating to 
age category A3 are aware of ‘e-marketing’ over  units falling under other age groups. The responses 
of the respondents from different turnover groups are presented in Table 3.     

                       
Table 3.  Awareness about Information Technology (Turnover-wise mean score) 

    Tools T1 T2 T3 Total 
(a) Internet marketing 60 

(90.9) 
41 

(97.6) 
63 

(96.9) 
164 

(94.8) 
(b) Viral marketing 2 

(3.0) 
1 

(2.4) 
3 

(4.6) 
6 

(3.5) 
(c) Search engine marketing 4 

(6.1) 
5 

(11.9) 
4 

(6.2) 
13 

(7.5) 
(d) E-marketing 17 

(25.8) 
9 

(21.4) 
28 

(43.1) 
54 

(31.2) 
(e) Any other 2 

(3.0) 
1 

(2.4) 
1 

(1.5) 
4 

(2.3) 
     N =            66          42 65 173 

  
 Table 3 depicts that that over 90 per cent respondents from each of the categories T1, T2 and 
T3 are familiar with ‘internet marketing’. However, 43.1 per cent units relating to turnover group T3, 
followed by 25.8 per cent from T1 and 21.4 per cent from T2 are also aware of the ‘e-marketing’. 



International Review of Management and Marketing, Vol. 2, No.1, 2012, pp.43-51 
 

46  

Further, most of the respondents relating to all turnover groups are not aware of the concept of ‘viral 
marketing’ and ‘search engine marketing’ as the respective percentages are very small.   
 The foregoing analysis indicates that the units from turnover group T3 have more awareness 
about ‘e-marketing’ as compared to the units from other turnover groups.  It has also been found that 
large majority of units relating all turnover groups are not aware of the ‘viral marketing’ and ‘search 
engine marketing’. 
(2)  Use of Internet in Marketing 
            The entrepreneurs of the selected units were enquired about the usage of ‘internet’ for the 
purpose of marketing their products. The industry-wise, age-wise and turnover-wise responses of the 
respondents are presented in Tables 4, 5 and 6 respectively. 
 
               Table 4. Usage of Internet in Marketing (Industry-wise Analysis) 

Internet in Marketing       TX      BBP     FPB      LLP      Total 

Using  35 (81.4) 
24 

(52.2) 
26 

(60.5) 
19 

(46.3) 
104 

(60.1) 

Not using  8 (18.6) 
22 

(47.8) 
17 

(39.5) 
22 

(53.7) 
69 

(39.9) 

N =        43         46        43        41         173 

       
              Table 4 shows that 60.1 per cent of the total respondents use internet for the purpose of 
marketing their products. Industry-wise analysis reveals that relatively higher number of respondents 
from  textiles (81.4%), followed by  food products and beverages (60.5%), bicycle and bicycle parts 
(52.2%) and leather and leather products (46.3%) have been using internet for marketing their 
products. Relatively, higher proportion of units relating to leather and leather products (53.7%) are not 
using internet for the purpose of marketing.   
             The foregoing analysis reveals that units belonging to textiles, and food products and 
beverages have been using internet for marketing purposes. 
 

Table 5. Usage of Internet in Marketing (Age-wise Analysis) 
Internet in Marketing          A1      A2       A3 Total 

Using 29 (53.7) 
50 

(61.0) 
25 

(67.6) 
104 

(60.1) 

Not using 25 (46.3) 
32 

(39.0) 
12 

(32.4) 
69 

(39.9) 

N = 54 82 37 173 

 
            Age-wise analysis as given  in the above table reveals that 67.6 per cent respondents  
belonging to age group A3, followed by A2 (61.0%) and A1 (53.7%) have been using internet  
marketing for selling their products. However, relatively higher number of units from age category A1 
(46.3%) are not using internet for marketing purpose. 
          The study reveals that relatively more units belonging to age group A3 have been using internet 
marketing as compared to units in age groups A1 and A2. 
 

Table 6. Usage of Internet in Marketing (Turnover-wise Analysis) 
Internet in Marketing  T1 T2 T3 Total 

Using  34 (51.5) 
23 

(54.8) 
47 

(72.3) 
104 

(60.1) 

Not using  32 (48.5) 
19 

(45.2) 
18 

(27.7) 
69 

(39.9) 

  N =  66 42 65 173 



Internet Marketing Usage by Small Indian Entrepreneurs: An Exploratory study of Punjab 47 

             Table 6 reveals that majority of the respondents from the category T3 (72.3%), followed by 
categories T2 (54.8%) and T1 (51.5%) have been using internet for marketing their products. Relatively, 
higher numbers of units (48.5%) from turnover group T1 are not using internet marketing as compared to 
units relating to other turnover groups.  
             In brief the analysis reveals that more units in the turnover category T3 are marketing their 
products through internet.  
 (3) Advantages associated with Internet Marketing  
 The entrepreneurs of the surveyed units were asked about the level of agreement towards the 
perceived advantages of internet marketing. Kruskal-Wallis test has been applied to know the 
significant difference among the respondents belonging to different industries, age and turnover 
groups. The industry-wise, age-wise and turnover-wise responses of the respondents are presented in 
tables 7, 8 and 9 respectively.  
 
Table 7. Advantages of using Internet Marketing (Industry-wise Mean Scores) 
Advantages  Total TX BBP FPB LLP K.W.Statistics P-Value 

(a) Paperless transactions 4.10 4.42 3.67 4.58 3.73 36.651 .000* 

(b) Lower manpower cost 3.61 4.09 3.13 3.81 3.49 28.629 .000* 

(c) Elimination of middlemen 3.60 4.00 3.22 3.98 3.39 23.259 .000* 
(d) Quicker order execution 3.52 4.02 2.80 4.07 3.39 40.118 .000* 
(e) Results in low price of  
     product 

3.43 4.02 2.87 3.42 3.34 37.465 .000* 

(f) Large coverage of the market 3.81 4.30 3.24 4.35 3.44 42.933 .000* 
(g) Any other 1.34 1.47 1.00 1.05 1.88 16.030 .001* 
Note: * denotes significant results having p-value less than 0.05.  

 
Table 7 shows that the respondents agree that internet marketing is a ‘paperless transactions’ 

(mean score 4.10). In addition to this, the respondents also agree that ‘large coverage of market’, 
‘lower manpower cost’, ‘elimination of middlemen’, ‘quicker order execution’ and ‘results in low 
price of products’ (mean score being more than 3 in all) are important advantages of internet 
marketing. Industry-wise analysis reveals that the respondents relating to textiles industry agree that 
usage of internet marketing has advantages such  as ‘paperless transactions,’ large coverage of the 
market’, ‘lower manpower cost’, ‘quicker order execution’, and ‘results in low price of product’ (mean 
score being more than 4). However, the units belonging to bicycle and bicycle parts neither agree or 
disagree with the advantages of ‘quicker order execution’ and ‘results in low prices of product’ (mean 
score being nearly 3). Similarly, the respondents relating to food products and beverages opined that 
internet marketing has advantages such as ‘paperless transactions’, ‘large coverage of market’ and 
‘quicker order execution’ (mean score being more than 4 in all). Further, the units belonging to leather 
and leather products also agree that use of internet marketing is advantageous for the units (mean score 
being more than 3 in all factors).   

It has been observed that relatively more  units relating to textile industry  feel that internet 
marketing has advantages like ‘paperless transactions,’ ‘large coverage of the market’,  ‘lower 
manpower cost’, ‘quicker order execution’, and ‘results in low price of product’, as compared to units 
belonging  to other surveyed  industries. Units from bicycle and bicycle parts industry do not consider 
that internet marketing is beneficial to them. Significant differences have emerged among the units 
relating to various industries with respect to the various advantages of internet marketing.  

K-W statistics shows that there are significant variations among the respondents relating to 
various industries with respect to the advantages of internet marketing such as ‘paperless transactions,’ 
‘lower manpower cost’, ‘elimination of middlemen’, ‘quicker order execution’ large coverage of the 
market’, ‘lower manpower cost’, ‘quicker order execution’, and ‘results in low price of product’ as the 
p-values are lower in all than the assumed p-value of 0.05. 

The responses relating to advantage of internet usage have also been analyzed across different 
age categories and are presented in Table 8. 



International Review of Management and Marketing, Vol. 2, No.1, 2012, pp.43-51 
 

48  

       Table 8. Advantages of using Internet Marketing (Age-wise Mean Scores) 
Advantages  Total A1 A2 A3 K.W. Statistics P-Value 

(a) Paperless transactions 4.10 4.23 4.17 4.01 2.297 .317 
(b) Lower manpower cost 3.61 3.64 3.70 3.61 .667 .716 
(c) Elimination of   
     middlemen 

3.60 4.09 3.48 3.30 3.849 .146 

(d) Quicker order     
execution 

3.52 3.61 3.48 3.50 .402 .818 

(e) Results in low price of  
     product 

3.43 3.52 3.42 3.36 .060 .970 

(f)  Large coverage of the  
      market 

3.81 3.31 4.06 4.05 .023 .989 

(g) Any other 1.34 1.27 1.32 1.43 .636 .728 

 
            The table reveals that most of the respondents relating to different age categories agreed that 
‘paperless transactions’ (mean score 4.10) is the main advantage of the internet marketing. However, 
the respondents  belonging to age group A1 have given more importance to the advantages, such as   
‘paperless transactions’, and ‘elimination of middlemen’, (mean scores being the higher). Similarly, 
most of the respondents from category A2 and A3 agree that internet marketing has advantages like 
‘paperless transactions’ and ‘large coverage of the market’ (mean score being more than 4). The other 
advantages such as ‘lower manpower cost’, ‘quicker order execution’, ‘results in low prices of 
products’(mean score being more than 3 in all) have also been agreed  by most of the units relating to 
different age groups. 
            It can be observed from the K-W statistics that there is no significant difference in the opinion 
of the respondents belonging to different age groups.   
 Further, the units relating to different age categories considered ‘paperless transactions’ and 
‘large coverage of market’ as the most important advantages of the internet marketing. However, 
majority of the units from age group A1 also considered ‘elimination of middlemen’, lower 
manpower’, ‘quicker order execution’, and ‘results in low price of product’  as the  main   advantages 
of internet marketing  in comparison to units from other age groups. 
 Table 9 shows the analysis of advantages of internet marketing given by respondents from 
different turnover groups. 
 

Table 9. Advantages of using Internet Marketing (Turnover-wise Mean Scores) 
Advantages  Total T1 T2 T3 K.W. Statistics P-Value 

(a) Paperless transactions 4.10 4.28 3.83 4.34 3.657 .161 
(b) Lower manpower cost 3.61 4.11 3.41 4.08 6.986 .030* 
(c) Elimination of   
     middlemen 

3.60 4.12 3.37 4.11 7.905 .019* 

(d) Quicker order execution 3.52 4.02 3.38 4.12 10.509 .019* 
(e) Results in low price of  
     product 

3.43 3.46 2.98 3.88 5.940 .051 

(f) Large coverage of the  
     market 

3.81 4.18 3.30 4.42 9.107 .011* 

(g) Any other 1.34 1.35 1.24 1.44 .921 .631 

  
 The above table indicates that most of the respondents belonging to turnover groups T1 and 
T3 strongly agreed that ‘paperless transactions’, ‘large coverage of market’, ‘elimination of 
middlemen’ and lower manpower cost’ (mean score being more than 4) are the main advantages 
associated with usage of  internet marketing. However, the units in the category T2 agreed  towards 



Internet Marketing Usage by Small Indian Entrepreneurs: An Exploratory study of Punjab 49 

the advantages like ‘paperless transactions’, ‘large coverage of market’, ‘elimination of middlemen’ 
and lower manpower cost’(mean score being more than 3). 
           K-W statistics indicates that there are significant differences in the perception of the 
respondents belonging to different turnover categories with respect to various advantages associated 
with internet marketing.    
 Similarly, the respondents belonging to turnover groups T1 and T3 as compared to units from 
turnover group T2 ranked ‘paperless transactions,’ large coverage of the market’, ‘lower manpower 
cost’, ‘quicker order execution’, and ‘results in low price of product’ as the more important 
advantages of internet marketing. Statistically, no significant difference exists among the respondents 
belonging to different age and turnover categories with respect to various advantages associated with 
internet marketing.    
 

(4) Internet Marketing Problems 
 The entrepreneurs of surveyed units were also asked to indicate the extent of internet 
marketing related problems being faced by them on five-point rating scale. Kruskal-Wallis test has 
been applied to know the differences among the respondents relating to different age and turnover 
groups with respect to different problems of internet marketing. The responses of the respondents are 
presented in the Tables, 10, 11 and 12. 
 
           Table 10. Internet Marketing Problems (Industry-wise Mean Scores) 
Problems  Total TX BBP FPB LLP K.W.Statistics P-value 

(a) Technological or 
market access issues 

3.44 4.12 3.22 3.63 2.78 17.371 .001* 

(b) Shortage of skilled 
staff 

3.68 4.53 3.20 4.19 2.78 37.679 .000* 

(c) Inefficient services of 
the service provider 

2.74 3.56 2.30 2.72 2.39 21.277 .000* 

(d)  Lack of knowledge 2.98 3.65 2.37 3.23 2.68 17.717 .001* 
(e) Financial issues 3.16 3.51 3.17 3.33 2.59 17.334 .001* 
(f) Any other 1.46 2.12 1.15 1.00 1.59 6.726 .081 

 Note: * denotes significant results having  p-value less than 0.05.  
  
 Table 10 exhibits that most of the units relating to various industries face internet marketing 
problems like ‘shortage of skilled staff’ (mean score 3.68), ‘technological or market access issues’ 
(mean score 3.44) and ‘financial issues’ (mean score 3.16) from moderate to some extent. Industry-wise 
analysis reveals that the units  belonging to textile industry  have been facing internet marketing related  
problems such as, ‘shortage of skilled staff’ (mean score 4.53), ‘technological or market access 
issues’(mean score  4.12), to great extent and other problems like ‘lack of knowledge’(mean score 3.65), 
‘inefficient services of the service provider’(mean score  3.56), and ‘ financial issues’(mean score  3.51) 
to moderate extent. However, the respondents from bicycle and bicycle parts have been facing problems 
in ‘technological or market access issues’ (mean score 3.22), ‘shortage of skilled staff’ (mean score 
3.20) and ‘financial issues’ (mean score 3.17) from moderate to some extent and other problems like 
‘lack of knowledge’, (mean score 2.37) and ‘inefficient services of service provider’ (mean score 2.30) 
to some extent. The units from food products and beverages face internet marketing related problems 
like ‘shortage of skilled staff’ (mean score 4.19) to moderate extent followed by problems such as 
‘technological or market access issues’ (mean score 3.63), ‘financial issues’ (mean score 3.33), and 
‘lack of knowledge’, (mean score 3.23) to some extent. Further,  units belonging to leather and leather 
products have been facing problems of internet marketing to a lesser extent (mean score being lower in 
all) as compared to other surveyed industries.       

           K-W statistics reveals that there is significant difference among the units relating to different 
industries with respect to ‘technological or market access issues’, ‘shortage of skilled staff’, ‘inefficient 
services of the service provider’, ‘lack of knowledge’ and ‘ financial issues’  as the p-values are lower 
than the assumed p-value of 0.05 in the above mentioned  problems associated with internet marketing.  



International Review of Management and Marketing, Vol. 2, No.1, 2012, pp.43-51 
 

50  

Findings of the study also reveal that most of the units relating to various industries face 
internet marketing problems like ‘shortage of skilled staff’, ‘technological or market access issues’ and 
‘financial issues’ to a moderate extent. Comparatively, higher number of units belonging to textiles 
have been facing internet marketing problems like, ‘technological or market access issues’, ‘shortage 
of skilled staff’, ‘inefficient services of the service provider’, ‘lack of knowledge’ and ‘ financial 
issues’. The respondents from bicycle and bicycle parts have also been facing problems in 
‘technological or market access issues’, ‘shortage of skilled staff’,  ‘financial issues’,  ‘lack of 
knowledge’, and ‘inefficient services of service provider’ from moderate  to some extent. The units 
from food products and beverages face internet marketing related problems like ‘shortage of skilled 
staff’ to moderate extent followed by problems such as ‘technological or market access issues’, 
‘financial issues’ and ‘lack of knowledge’, to some extent.  The units belonging to leather and leather 
products are facing less number of internet marketing problems as compared units relating to other 
surveyed industries. Statistically, significant differences have emerged among the units relating to 
different industries with respect to internet marketing problems. Table 11 shows the information 
relating to internet marketing problems on the basis of different age groups. 
 
             Table 11. Internet Marketing Problems (Age-wise Mean Scores) 

Problems  Total A1 A2 A3 K.W. Statistics P-Value 
(a) Technological or  
      market access issues 

3.44 3.78 3.39 3.05 4.238 .120 

(b) Shortage of skilled  
      staff 

3.68 3.89 3.68 3.35 1.883 .390 

(c) Inefficient services of  
      the service provider 

2.74 2.96 2.78 2.32 4.828 .089 

(d)  Lack of knowledge 2.98 3.28 2.93 2.65 3.710 .156 
(e) Financial issues 3.16 3.48 3.09 2.84 3.028 .220 
(f) Any other 1.46 1.63 1.43 1.27 .691 .708 

 
It can be observed from the table most of the respondents belonging to different age groups 

have been facing internet marketing related problems such as ‘technological or market access issues’, 
and ‘shortage of skilled staff’ (mean being more than 3) from moderate to some  extent.. However, 
the units from category A1 face internet marketing problems like ‘financial issues’ and lack of 
knowledge’ (mean score higher in both) to higher extent as compared to the respondents from age 
groups A2 and A3. However, the units in the category A2 encountering with the problem like 
‘financial issues’ (mean score 3.09) to some extent. While the respondents from age group A3 as 
compared to categories A1 and A2 face problems of internet marketing to the lesser extent (mean 
scores being lower in all).   

 K-W statistics shows that there is no significant variation in the opinion of units relating to 
different age groups regarding problems of internet marketing.   

It has also been found that units in the different age groups considered ‘technological or 
market access issues’, and ‘shortage of skilled staff’ as the main internet marketing problems. 
Comparatively, more units belonging to age group A3 have been facing less number of problems as 
compared to units in the age groups A1 and A2. Turnover group-wise responses of the respondents 
regarding internet marketing problems are given in Table 12.  

 Turnover-wise analysis shows that  respondents belonging to turnover group T1 have been 
facing internet related problems like ‘shortage of skilled staff’ (mean score 4.12) to moderate extent 
and other problems like ‘technological or market access issues’, ‘financial issues’, ‘lack of 
knowledge’, and ‘inefficient services of the service provider’ (mean score being more than 3) to some 
extent. The respondents from category T2 face problems of ‘technological or market access issues’ 
(mean score 3.26), ‘shortage of skilled staff’ (mean score 3.21) to some extent and other problems like 
‘inefficient services of the service provider’, ‘lack of knowledge’, and ‘financial issues’ (mean scores 
less than 3) to less extent. However, the units relating to turnover group T3 also face problems of 
‘shortage of skilled staff’ (mean score 3.35) and ‘technological or market access issues’ (mean score 
3.05), to some extent. The table further reveals that the units relating to category T3 have been facing 



Internet Marketing Usage by Small Indian Entrepreneurs: An Exploratory study of Punjab 51 

problems of internet marketing to a lesser extent as compared to units belonging to categories T2 and 
T3. 

 
Table 12. Internet Marketing Problems (Turnover-wise Mean Score) 

Problems  Total T1 T2 T3 K.W. Statistics P-Value 
(a) Technological or market 
     access issues 

3.44 3.86 3.26 3.12 7.642 .022* 

(b) Shortage of skilled staff 3.68 4.12 3.21 3.52 7.250 .027* 
(c) Inefficient services of the  
     service provider 

2.74 3.17 2.33 2.57 7.947 .019* 

(d)  Lack of knowledge 2.98 3.35 2.69 2.78 3.603 .165 
(e) Financial issues 3.16 3.56 2.95 2.88 4.608 .100 
(f) Any other 1.46 1.80 1.19 1.28 4.611 .100 

   
         K-W statistics indicates that there is significant variation in the perception of units relating to 
different turnover groups regarding problems of internet marketing. Further, relatively more units 
relating to category T1 are facing more internet marketing problems as compared to units belonging to 
categories T2 and T3. The units in the category T3 are stronger in ‘technological or market access 
issues’, and ‘financial issues’ than those from categories T1 and T2. Statistically, there are no 
significant differences in the perception of units relating to different age and turnover groups with 
respect to internet marketing problems.  

 
4. Conclusion 
            It has been observed that relatively more units relating to textile and food products and 
beverages industries feel that internet marketing has advantages as compared to units belonging to 
other surveyed industries. Units from bicycle and bicycle parts industry do not consider that internet 
marketing is beneficial to them.  

Findings of the study also reveal that most of the units relating to various industries face 
internet marketing problems like ‘shortage of skilled staff’, ‘technological or market access issues’ and 
‘financial issues’ to a moderate extent. Comparatively, higher number of units belonging to textiles 
has been facing internet marketing problems and units belonging to leather and leather products are 
facing less number of internet marketing problems as compared to units relating to other industries.  
          In the era of internet, the more usage of web and internet marketing is required for large 
coverage of market and to meet the competition challenges. The small entrepreneurs have to 
understand the increasing role of computerization right from production to selling. The modern 
technology tools such as search engine marketing and e-marketing would play a pivotal role for 
dominance and success of small companies. Moreover, service providers also need to provide trouble 
free and efficient services for the growth of industry. Hence, the small entrepreneurs need to have 
computerization of their business processes and recruitment of trained and efficient staff to compete 
and sustain in the market.  
 
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