Is Less Student Purchase Text Books from School Book Store - Research Paper Example

Executive Summary There has been a downward trend in the sales of the on-campus bookstore in the recent years. This, despite the fact that the requirements and assessment criteria have become harder, and students are continuously in need of research backed material and good reference sources. The author has discovered that more and more students are turning towards Internet and online bookstores and libraries for their academic needs. The spread of information technology and e-commerce has enabled students to access unimaginable number of information sources and get their books delivered at their doorstep. While indicative of the changing trend in the overall consumer purchasing behavior, the findings reveal the more immediate threat that the on-campus bookstore is facing. In the changing circumstances, the management needs to re-align its core business of selling with technology. This paper and the research undertaken by the author are aimed at discovering the book-purchasing habits of the students, and also endeavors to find out the possible reasons for their reluctance to buy from the on-campus bookstore. The above objectives were sought to be achieved through a primary research, using a close-ended questionnaire on a sample of 50 students. A literature survey was also conducted to establish how the consumer behavior is being modified by e-commerce, and how other bookstores are coping with the change. Problem Statement The author has observed, personally and through his interactions with his colleagues, teachers and staff, that there has been a debilitating trend in the book-purchasing behavior of students buying books through on-campus bookstores. The requirements of college course-work have become more and more challenging, and a student is continuously facing the daunting challenge of coming up with exemplary references in his papers. Not only he needs access to a gamut of the prescribed books, he also needs to embellish his work with sources, not yet available through his local campus. Online Libraries and online book vendors provide a cheaper and faster alternative for the academic needs of the students. M-commerce and e-commerce are making forays into the academic life, making available to him an array of study material, books, and journals right at his doorstep. There has also been a revolution in the availability of free information online – through search engines like Google and Yahoo, a student can get access to whatever data he needs while sitting at home. In addition to the changing economy (the IT boom, availability of computers and cheap connectivity), the other possible reason could be the changing profile of an average student. The bookstores were considered the traditional suppliers of the academic material and a student’s choice had to be restricted to the available books at his campus store. The fast-track change in economic conditions have made the average student have more money, and placed better options for him to exercise. He is now aware of the difference in pricing, and is able to gauge the best source for buying books. However, though the change in the purchasing behavior has been caused by a variety of reasons, the point remains moot about the campus book-store’s viability in the changed circumstances. The management of a campus bookstore needs to assess the situation critically, so as to primarily deduce the causes of the recession in its sales, and secondarily, to formulate a plan of action for reviving-up the business. The author has prepared a research design that will enable him to tap in the reasons why students are moving away from the traditional on-campus bookstores. An analysis of the data thus collected will be used to illuminate the actions that need to be taken by the management to revive their stores. A limitation of the research is that the sample used for data collection is wholly made up of students on a single campus, and consists of only 50 respondents. However, a valid assumption is that the campus chosen can be taken as representative, and that the findings can be extended to a broader sample. Recommendations of the future research include using the inputs from teachers as a part of the data collected from the questionnaire, using a larger sample size, and including the opinions of economists and educationists in assessing the problem and arriving at solutions. Research Objectives The research proposes to answer the following questions: 1. Is there a detectable trend that students are purchasing less from the on-campus book stores? 2. What are the alternative means by which the students are purchasing books? 3. What are the reasons that the students are preferring other sources over on-campus bookstores? Importance of the Research A successful compilation and analysis of the above primary questions will enable the author in assessing the reasons why the on-campus bookstores are lagging. This information will form the basis of recommended modes of action for the management to undertake. The research can also be used to guide future research, which can be undertaken on a wider scale involving several campuses and using the inputs of Educationists and Academicians. On a more practical level, it will enable the management to gain insight into their bookstore’s weak points. This will then serve them to assess and evaluate different courses of conduct that are recommended. Research Design The above stated objectives will be carried out using a Descriptive Research (Kothari, C. R. 1990.), which will include reporting upon the existing state of affairs as well as digging into the possible causes. A questionnaire-based survey of 50 respondents will be taken, where the sample will be chosen from among the students enrolled in a particular campus. As the research is geared towards providing useful recommendations for the management of the bookstores, it will also include a Literature Survey, primarily of the changing nature of on-campus bookstores. The basic aspects of the Research Design are as follows: 1. Nature of Research: Descriptive 2. Sample: a) Design: The sample will comprise of students, randomly drawn from among those enrolled in diverse courses on the campus. b) Size: 50 4. Data Collection Method: Questionnaire A multiple-choice, close-ended questionnaire will be formulated for the collection of data from the respondents. Validity and Reliability: The instrument was prepared by the author himself, and was tested for validity and reliability. Validity: The author has approached his Professors and the Bookstore Management for content validity (expert judgment on the relevance of the included questions to the problem at hand). (Singh, AK, 1998) Reliability (Appendix B): The questionnaire was initially administered to a sample of 5 students, and their total score calculated (based upon specific answers as elaborated in appendix B). The same sample was retested after a period of 30 days, and the new scores thus collected were correlated. The instrument displayed a correlation of 0.71. (Singh, AK, 1998). However, this sample was different from the final 50 respondents. Data Analysis Tables and Charts Table 1: Number of Books Purchased In The Last 6-month Period Number Of Books Purchased In Last 6 Months Number Of Respondents None 5 Between 1 & 3 28 Between 3 & 5 14 Over 5 3 Total 50 Chart 1: Percentage Distribution of respondents purchasing different number of books in the past six months: Table 2: Books Purchased At The On-Campus Book Store in the Last Six Months: Table 2: Books Purchased In The Last 6-month at on-campus bookstore Number Of Books Purchased In Last 6 Months At On-campus Bookstore Number Of Respondents None 29 Between 1 & 3 14 Between 3 & 5 4 Over 5 3 Total 50 Chart 2: Percentage Distribution of respondents purchasing different number of books in the past six months at the on-campus bookstore. Table 3: Different Sources Of Buying Books or Obtaining the Required Information: Different Sources For Buying Books Or Getting Required Information Number Of Respondents Internet through Google or Yahoo 50 Campus Library 37 On-line Libraries 21 On-line book stores like Amazon.com, e-bay 25 Total NA* *Students can tick more than one option. Chart 3: Different Sources Of Buying Books or Obtaining the Required Information: Table 4: Reasons For Preferring Other Sources Over On-campus Bookstore Different Sources For Buying Books Or Getting Required Information Number Of Respondents Cheaper 39 More Choice/variety available 45 Easy to Purchase or get home delivery 21 Discounts/seconds 30 Total NA* *Students can tick more than one option. Chart 4: Reasons For Preferring Other Sources Over On-campus Bookstore Findings Primary Research 1) Though 42 of the respondents had purchased 1- 4 books in the past six months, only 18 did it at the local on-campus bookstore. 2) All the students surveyed accepted that they used the Internet for searching for relevant information. 50% stated that they have used on-line shopping arcades like amazon.com and e-bay. 3) 90% stated that they had a better choice and availability of material using alternate sources. 78% also felt that using these other sources was cheaper. 60% preferred using these sources as they got better bargains in terms of discounts and used books. 42% liked the ease and comfort with which they could get books delivered at their door-step, or browse for online information. 4) Most of the students (35) were having a disposable monthly income between $100 and $ 250. Literature Survey A look at the Amazon.com’s revenues for 2005 revealed that the revenue was up nearly 23 percent to $8.49 billion, from $6.92 billion in 2004. For all of 2006, the company is expecting sales of between $9.85 billion and $10.45 billion. (MSNBC, online at ttp://www.msnbc.msn.com/id/11149606/) eBay reported net revenue of $1.086 billion, up 40 percent from last years second quarter and above consensus expectation of $1.042 billion. A substantial percent of the earnings came from e-bay’s on-line book selling processes. (InfoWorld, online at http://www.infoworld.com/article/05/07/20/HNUebayearnings_1.html) The City College of San Francisco Bookstore (CCSF Bookstores, online at http://www.ccsf.cc.ca.us/Services/Bookstore/aboutus.htm) founded in 1951, has now expanded to several branch campuses and sites of the San Francisco Community College District. The steady expansion was accompanied by the creation of a website, where students and faculty can see online catalogues, get information on availability of specific books at different stores, and also register their text books online. e-Campus is offering the eCampus Virtual Bookstore Program, that is geared towards designing the online campus bookshops. eCampus believes that, as more and more students are choosing the ease of buying textbooks online, campus bookstores can benefit with its innovative program. Through the proposed program, e-Campus would manage the bookstore while the management can pocket the cash. (eCampus online at http://www.ecampus.com/) Conclusion and Recommendations: The above trends indicate sharply towards the rapid incursion and acceptance of e-commerce by the academic community as well as the business or commercial organizations. There has been a very real shift towards moving away from the traditional on-campus bookstore. The primary research revealed that more and more students are turning towards internet, online bookstores, or making use of college libraries to access books. Students cite the relative lower prices and bargains, the ease of purchase, and the vast variety of material that they can access through the alternate sources as the reasons for shying from the local bookstore. The management would find it beneficial to invest in technology – the setting up of a website/intranet for the use of students is highly recommended as students will find it easier to browse through the online catalogue. It is advisable that the bookstore should diversify into used or old books, and also provide bargains and cheaper editions. The management needs to keep itself abreast of the course requirements and should strive to keep adequate supply of the relevant books – or start a tie-up with other stores to provide those books that are unavailable on-campus. The above measures are not exhaustive, and there is further scope for being creative – like, setting up a coffee and snacks bar on the same premise could make the bookstore a popular hangout. The management is therefore advised to use their ingenuity to come up with ways of providing cheap books, easier purchase, and vast variety of books to the students. Appendix A: Questionnaire Name: Course: 1) What is your average monthly disposable income a) < $ 100 b) between $ 100 - $250 c) over $ 250 2) How many books have you purchased recently (past six months) a) none b) between 1-3 c) between 3 & 5 d) over 5 3) How many books did you purchased through the on-campus book store a) none b) between 1-3 c) between 3 & 5 d) over 5 4) What other sources do you use for getting books and subject relevant information (a) Internet through Google or Yahoo (b) Campus Library (c) On-line Libraries (d) Online book stores 5) Why do you think you like to use the above resources as opposed to the on-campus bookstore a) Cheaper b) More Choice c) Easy to get information/ home delivery d) discounts/second hand books not available at the on-campus bookstore Appendix B: Testing for the Reliability of the Questionnaire Scoring 1) For Question Numbers 2, 4 and 5: a = 1, b=2, c=3, d=4 2) For Question Number 3, each option carries 1 point, students can mark as many as relevant On First Testing, Students answered as follows for questions 2, 3, 4 and 5: Students Question 2 Question 3 Question 4 Question 5 Total Score A 1 3 2 2 8 B 3 4 4 1 12 C 4 4 1 1 10 D 4 4 1 2 11 E 2 4 2 1 9 On Re-testing, Students answered as follows for questions 2, 3, 4 and 5: Students Question 2 Question 3 Question 4 Question 5 Total Score A 2 4 4 2 12 B 4 4 4 2 14 C 4 4 3 2 13 D 4 4 2 2 12 E 3 4 4 1 12 Test Of Reliability: Students Test Scores (x) Retest Scores (y) A 8 12 B 12 14 C 10 13 D 11 12 E 9 12 Calculation of the coefficient of correlation: X Y A= x- Avg x B= y- Avg y A2 B2 A*B 8 12 - 2 -0.6 4 0.36 1.2 12 14 2 1.4 4 1.96 2.8 10 13 0 0.4 0 0.16 0 11 12 1 -0.6 1 0.36 -0.6 9 12 -1 -0.6 1 0.36 0.6 Sum=50 Sum=63 Sum = 0 Sum = 0 Sum =10 Sum = 3.2 Sum = 4 Avg x = 41/5= 10 Avg y = 63/5=12.6 R = Sum(A*B)/ {Sum A2 * Sum B2}1/2 = 4 / {10*3.2}1/2 = 0.707 References 1. Kothari, C. R., 1990, Research Methodology, Methods & Techniques, pp. Wishwa Prakashan, India 2. Singh, A. K., 1998. Content or Curricular Validity, in Tests, Measurements and Researches in Behavioral Sciences, pp. 75. Bharati Bhawan. India 3. Online retailer earns $199 million for period including holidays, earnings at MSNBC, online at http://www.msnbc.msn.com/id/11149606/ 4. Juan Carlos Perez, July 20, 2005 EBay tops earnings and revenue expectations in Q2, at InfoWorld, online at http://www.infoworld.com/article/05/07/20/HNUebayearnings_1.html 5.About CCSF Bookstore, CCSF Bookstores, online at http://www.ccsf.cc.ca.us/Services/Bookstore/aboutus.htm 6. Let eCampus Operate Your School Bookstore, at eCampus online at From: http://www.ecampus.com/ Read More