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COMPARATIVE STUDY ON CUSTOMER SATISFACTION LEVEL
FOR CONSUMERS WITH REFERENCE TO E RETAILERS AMAZON,
FLIPKART & SHOPCLUES
Submitted in partial fulfilment of the requirement for Master of Business
Administration (MBA) 4th Semester Course Requirement By
COURSE CODE: 11010600
NAME: ARHAM BOTHRA
ROLL NO: 1911421002
Under the guidance of
Mr. Sandeep Saxena
SCHOOL OF COMMERCE AND MANAGEMENT
RNB GLOBAL UNIVERSITY
BIKANER, RAJASTHAN
April – 2021
ii
BONAFIDE CERTIFICATE
This is to certify that Arham Bothra are Bonafide Students of School of Commerce and
Management, RNB Global University, Bikaner, Rajasthan. They are in the 4th
semester of
Master of Business Administration Program (MBA). They have done this Final-project report
under my guidance/supervision towards partial fulfilment of the Final year MBA course
requirement.
Dr. Yuvraj Bhatnagar Mr. Sandeep Saxena
(Dean of Academics) (Faculty Coordinator)
Date:
Place:
iii
DECLARATION
I Arham Bothra studying in 4th
Semester MBA program at School of Commerce and
Management, RNB Global University, Bikaner, Rajasthan. We, at this moment, declare that
this Final project is an original work of ours, and we have not verbatim copied/duplicated any
material from sources like the internet or from print media, excepting some vital company
information/statistics and data that are provided by the company itself.
Signature of the Students
Date:
Place:
iv
ACKNOWLEDGMENT
This report would not have been possible without the assistance and participation ofmany
people. We sincerely appreciate and acknowledge their contribution. But in particular we
would extend our gratitude to RNB Global University for providing us such platform where we
can get chance to enhance our personal as well as professional skills.
We are also thankful to Mr. Sandeep Saxena for giving us motivation and encouragement and
keeping us on right path so that we can complete our project successfully. Without his
constant guidance, this report would not have been possible.
We are grateful to all those respondents who have given their contribution in filling the
survey forms, for their kind cooperation and encouragement which helped us in completion of
this project.
Lastly, we acknowledge our colleagues and all other people who directly or indirectly helped
during this project report.
Arham Bothra
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ABSTRACT
Internet became more powerful and basic tool for every person’s need and the way people
work. By integrating various online information management tools using Internet, various
innovative companies have set up systems for taking customer orders, facilitate making of
payments, vi customer service, collection of marketing data, and online feedback
respectively.
These activities have collectively known as e-commerce or Internet commerce. Online
shopping made so easy for everyone with their product variations and simple way to buy
things.
An attempt has been made to critically examine various corporate and business level
strategies of two big e-tailers and those are Flipkart and Amazon. Comparison have been
done considering e-commerce challenges, their business model, funding, revenue generation,
growth, survival strategies, Shoppers’ online shopping experience, value added
differentiation, and product offerings.
Both these big players made their own mark in India, but who is going to be ultimate winner
or be the top one is going to be.
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Contents
BONAFIDE CERTIFICATE..................................................................................................ii
DECLARATION.................................................................................................................... iii
ACKNOWLEDGMENT ........................................................................................................iv
ABSTRACT..............................................................................................................................v
CHAPTER I .............................................................................................................................1
INTRODUCTION....................................................................................................................1
1.1 INTRODUCTION.....................................................................................................1
1.2 COMPANY BACKGROUND.......................................................................................7
1.3 STATEMENT OF THE PROBLEM: ........................................................................16
1.4 OBJECTIVES: .............................................................................................................16
1.5 SCOPE AND SIGNIFICANCE OF STUDY .............................................................16
1.6 LIMITATION OF THE STUDY................................................................................16
CHAPTER II..........................................................................................................................17
REVIEW OF LITERATURE...............................................................................................17
2.1 Overview of Review of Literature: .............................................................................17
2.2 Review of Literature:...................................................................................................17
CHAPTER III ........................................................................................................................20
RESEARCH METHODOLOGY .........................................................................................20
3.1 OVERVIEW OF RESEARCH METHODOLOGY .................................................20
3.2 RESEARCH DESIGN .................................................................................................20
3.3 POPULATION/ SAMPLE SIZE ................................................................................20
3.4 MODE OF DATA COLLECTION ............................................................................21
3.5 TOOLS AND TECHNIQUES:................................................................................21
CHAPTER IV.........................................................................................................................22
DATA ANALYSIS AND INTERPRETATION..................................................................22
4.1 INTRODUCTION TO DATA ANALYSIS ...............................................................22
4.2 DATA ANALYSIS AND INTERPRETATION ........................................................22
CHAPTER V..........................................................................................................................49
FINDING AND SUGGESTIONS.........................................................................................49
5.1 FINDINGS:...................................................................................................................49
5.2 SUGGESTIONS ...........................................................................................................51
5.3 CONCLUSION.............................................................................................................52
REFERENCES.......................................................................................................................53
ANNEXURE...........................................................................................................................54
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CHAPTER I
INTRODUCTION
1.1 INTRODUCTION
The e-retailing(less frequently; e-Retailing, e-Tailing, etc.) is the concept of selling of retail
goods using electronic media, in particular, the internet. The vocabulary electronic retailing,
that used in internet discussions as early as 1995, the term seems an almost in evitable addition
to e-mail, e-business and e-commerce, etc. e-retailing is synonymous with business- to-
consumer (B2C) transaction model of e-commerce. Although e-retailing is an independent
business model with certain specific constituents like; trust model, electronic transaction
process, etc, but in reality it is a subset of e- commerce by nature.
E-Retailing stores sell online promotion only for goods that can be sold easily online, e.g.,
Amazon did for Books & CDs, etc. The online retailing require lots of displays and
specification of products to make the viewers have a personal feel of the product and its quality
as he gets while physically present in a shop.
E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to
customer) business model that executes a transaction between businessman and the final
consumer. E-Retailers can be pure play businesses like amazon.com or businesses that have
evolved from a legacy business such as tesco.com. The e-retailing is a subset of e-
commerce. Thus, e-commerce is the master domain defining the e-retailing operation.
Essentials of E-Retailing
Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of products,
information and service through virtual stores on the web, usually designed around an
electronic catalogue format and auction sites. There are thousands of storefronts or e-
commerce sites on the Internet that are extensions of existing retailers or start-ups. Penetration
of computers and proliferation of the Internet has given rise to many new forms of businesses,
such as business process outsourcing, call centre based customer relationship management,
medical transcription, remotely managed educational and medical services and of course,
electronic retailing.
There are certain essential ingredients for an electronic retailing business to be successful. One
must consider these components well in advance before setting up an electronic
storefront. These essential components are:
• Attractive business-to-consumer (B2C) e-commerce portal
• Right revenue model
• Penetration of the Internet
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E-Catalog It is a database of products with prices and available stock.
Shopping Cart The customers select their goodies and fill shopping cart. Finally, as in a real
store, at the time of checkout, the system calculates the price to be paid for the products.
A payment gateway Customer makes payments through his/her credit card or e-cash. The
payment mechanism must be fully secure.
Support Services in E-Retailing
The electronic retail business requires support services, as a prerequisite for successful
operations. These services are required to support the business, online or offline, throughout
the complete transaction-processing phases. The following are the essential support services:
• Communication backbone
• Payment mechanism
• Order fulfillment
• Logistics
Advantages of E-Retailing
E-Retailing, either as an extension of the existing retail/distribution business or an altogether
new start-up, has many advantages. Traditional brick-store retailers are placing more emphasis
on their electronic channels and evolving into multi-channel retailers to increase their reach
and support their retail channels.
The new start-ups in e-retailing can be launched from a small room with one PC attached with
the outside world through the Internet.
• The electronic channel gives the existing brick-store retailers an opportunity to reach
new markets.
• For the existing retailers, it is an extension to leverage their skills and grow revenues
and profits without creating an altogether new business.
• E-Retailing overcomes some limitations of the traditional formats, for instance the
customers can shop from the comfort of their homes.
• The e-commerce software that also traces the customers activities on the Net enables e-
retailers to gain valuable insights into their customers shopping behaviour.
• The e-retail channels transcend all barriers of time and space. The retailers server must
be on 24*7. An order can come from any customer living any place at any time of the
day.
• E-Commerce channels are definitely efficient and retailers do not have to pay a heavy
price for brick-n-mortar shops in costly shopping malls.
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Shortcomings of e-retailing
The online retailing {e-retailing} process is not an ultimate in the field of retailing methods; it
also suffers various drawbacks that are the qualifications of traditional marketing. Some of the
drawbacks need mention.
• It has no theatrical ambience which can be the customer.
• It lacks an emotional shopping experience that the customer can get in a personal
shopping store.
• It being container of intangible merchandise (i.e., virtual display of merchandise) does
not provide sensory support to the customer, these the customer cannot hold, small,
feel, or try the product.
• On line customers are reluctant to part with their credit card details on net, fearing they
may be misused. It arises security issues. The customers are not yet convinced about
the foolproof status of this method, especially in Indian environment.
• It provides, to a large extent, impersonal services which the Indian customers are not
exposed to; they are rather used to the tangible personalized services which they miss
in online retailing services.
• It is lacking in family shopping experience which the Indian customers enjoy at the
weekends, and particularly during festive seasons and marriage marketing.
The advantages of e Retailing outweighs its draws, thus it is showing a positive growth rate
across the boundary.
Success factors for e-retailing
The success of e-retailing depends on multiple factors that are required to be taken into
consideration as prima-facie, missing even a single small consideration is quite liable to
create a greater negative impact on entire business, since the customers and business both are
far from each-other.
The customer is aloof from reality of the business regarding with whom he is going to enter
into a business relation; whether the relation will go for a short-term or for over a long-term,
no matter.
The e-Retailing business pattern is sophisticated as well as quite delicate; rather it may be
defined more correctly as fragile. Thus, every consideration requires equal importance in its
own status.
Following are some of the factors to be taken care of, however it is neither exhaustive nor the
ultimate, since it may change according to the nature of business too. At the same time the
business ambience, magnitude and type of competition, changing need of consumer and many
more external factors may influence it to a larger extent.
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Thus, the early recognition of necessary current requirements and its implementation along
with time is always a wise proposition.
The important factors are:
• Strong Branding
• Unique Merchandising
• Value Addition
• Competitive Pricing
• Better CRM
• Better Distribution Efficiency
• Soothing Website Design
• Transparency in Services.
As e-retailer is alone in the e-Retailing market rather he is also surrounded with a number of
competitors, thus to ensure sale he has to think competitive pricing so that he can attract his
customer.
The competitive pricing finds scope from potential decrease in charges and expenditures that
he had to bear while in brick-and-mortar mode of marketing. It is a matter of careful exercise
to enclose a real competitive price to its products or services.
The first abroad of the customer is website. The aesthetic and easy handling facilities are two
important terms in this relation. The aesthetic provides initial attraction along with keeping
the visitor long held with the site. The maneuvering easiness keeps the visitor surfing it for
long.
The aesthetics of the website must provide soothing look and feel and clarity of objects or
scripts to the visitor along with sufficient ergonomic considerations, so that the visitor does not
feel tired at the earliest. The careful placement of buttons and links provides ease in handling
it.
Finally, the transparency of services creates faith on the visitor of the site as well as on the
customer of the business. Transparency of services is identified with the truth.
Challenges of E-Retailing
Unproven Business Models
In the formative years of dot-com era, most of the businesses on the Net were experiments in
new areas and did not provide enduring sources of profit. This was the primary reason behind
closing down of 90 per cent of the purely e-commerce companies in the beginning of this
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century. Today, dot-com businesses have matured a little. Still some of the businesses are at
experimental level and do not guarantee regular revenue.
Requirement to Change Business Process
The process of procurement, storage and logistics in e-businesses is different from that in
traditional brick-store businesses. The e-retail organization has to carefully redesign and
integrate various processes to suit the new e-business. Traditional sections of departments and
management hierarchy may pose hindrances and bottlenecks in the process of order processing
and shipments, for example, the traditional business may require the goods to be present at the
warehouse and inspected before being shipped to the customer, but in electronic retailing,
shipping of goods from one place to another to a customer would not be possible.
The retailer may appoint a local supplier at the city where the customer resides and instruct the
supplier to deliver the goods. This would require by passing certain business rules and a lot of
faith on the local supplier. It would require business confidence that the supplier would follow
the instructions and deliver the same product in good quantity and perfect quality. Merchandise
planning and demand analysis is also difficult in e-retailing, as compared to traditional retail
businesses.
Channel Conflicts
Companies selling through the Internet as well as through brick stores may find their interest
conflicting at many places. In electronic storefront orders, the goods directly reach the end-
consumer and so the distributors and sellers may feel the threat to their existence. Most of the
time, it is seen that retailers tend to reduce price over the Net. The sale at the brick store may
store may drop because the retailer may tend to sell more through the Internet as a result of
reduction of prices.
Legal Issues
Proper laws have not yet evolved for Internet based transactions. Validity of e-mails, digital
signatures and application of copyright laws is being checked by various government
authorities. E-mail and digital signatures are now being recognized as valid for any legal
purpose. Value Added Tax (VAT) is yet another area that creates problems. Taxes on goods
and services are still an issue.
Since the taxes are levied and shared by multiple government agencies at local, state or federal
level, there are no clear rules to guide retailers on that. In e-retailing, the place of billing, the
place of dispatch of goods and the place of delivery all differ. If these three places fall in
different jurisdictions of governments, levy and submission of taxes would be a problem.
Security and Privacy
Security is one of the major challenges in the digital world. Despite a lot of security
arrangements, such as passwords and firewalls, we come across the news of website hacking
and data pilferages.
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The Internet being on public domain is more susceptible to unauthorized peeping. People are
wary of divulging information regarding their credit cards and personal details on the Net
because they can be misused.
Cyber criminals have exploited the Internet weaknesses and have broken into computer
systems, retrieving passwords and banking information. Security of payment gateway is a
major concern, which has to be taken care of by the retailer by putting up proper security layers.
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1.2 COMPANY BACKGROUND
Flipkart:
Flipkart is one of India’s leading e-commerce marketplaces. It was founded in October 2007
and its headquarters are in Bengaluru. It was founded by Sachin Bansal and Binny Bansal. This
online venture was initially started as an online bookstore and as the popularity of the company
grew, it expanded and diversified its operations.
It started selling other items such as music, movies, and mobile phones. As the revolution of e-
commerce gained momentum in India, Flipkart grew at an accelerated pace and added several
new product lines in its portfolio.
As of now, the company offers 80 million+ products spread across more than 80 categories
such as mobile phones & accessories, computers and accessories, laptops, books and e-books,
home appliances, electronic goods, clothes and accessories, sports and fitness, baby care,
games and toys, jewellery, footwear, and the list goes on.
Flipkart has 100 million registered users and more than a million sellers on its electronic
commerce platform. To ensure prompt delivery to its customers, the company has invested in
setting up warehouses in 21 states.
This online platform attracts ten million page hits every day and around eight million shipments
are processed every month. Flipkart has also introduced its mobile application, which has
become quite popular, with 50 million+ app users. Flipkart is a billion dollar company and its
valuation in 2016 was INR 15,129 crore (US$2.3 billion). It is also fulfilling its social
responsibility by providing huge scale employments (employs more than 33,000 people).
Background History of Flipkart
Flipkart was originally started as an online book store in October 2007. To start Flipkart, the
founders Sachin Bansal and Binny Bansal left their jobs at Amazon and took a huge risk to
start a venture of their own.
When the founders thought of starting Flipkart as a company the market at that time was not
so much vibrant and was not adapted to the e-Commerce sector that much.
This means e-commerce in India was mostly non-existent at that time and there was no
certainty about its future. Still, the Bansal’s decided to take this risk and now it has turned out
to be a huge success.
One of the major problems that Flipkart tackled during its initial years was online payments
because at that time, people in India were averse to make online payments to a virtual store,
due to fear of frauds and loss of money.
To deal with this issue, Flipkart launched its ‘Cash on Delivery’ service, which helped to build
confidence among online buyers. It also made significant efforts to improve the supply chain
system, which helped the company to ensure timely delivery to its customers.
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Achievements of Flipkart
The company created a record by selling 1 lakh books in a single day in 2013. Flipkart crossed
the 100 million mark in registered customers in 2016.
Flipkart achieved the Young Turk of the Year Award at CNBC TV 18’s “India Business Leader
Awards 2012”.
Funding
Flipkart has received funds worth more than $ 4.5 billion, with the biggest funding in July 2014
worth $ 1 billion and in April 2017 worth $ 1.4 billion.
List of top investors in Flipkart includes Naspers, Steadview Capital, Tiger Global
Management, DST Global, Accel Partners, Dragoneer Investment Group, Baillie Gifford, GIC,
Greenoaks Capital, ICONIQ Capital, Microsoft, Morgan Stanley, Qatar Investment Authority,
and Sofina.
Acquisitions made by Flipkart
There is cut-throat competition in the e-commerce market and the biggest Rival of Flipkart is
Amazon. In the recent years, many mergers and acquisitions have been witnessed in the e-
commerce market and Flipkart has also made many acquisitions to expand its business and
boost its sales and earnings.
The major acquisitions made by Flipkart include Myntra, eBay India, PhonePe, Jabong,
Letsbuy(dot)com, WeRead, Mime360, chakpak(dot)com, Appiterate, FX Mart, and ngpay. It
has recently acquired its former competitor Snapdeal. It has acquired Snapdeal at a cost of $
950 million.
Competition: The major competitor – Amazon
After acquiring Snapdeal the major competitive left against Flipkart is Amazon India. Still, it
is facing stiff competition from Amazon India because Amazon has really captured a larger
share of the market.
Exclusive products
Motorola mobility, previously owned by google but then sold to Lenovo, in an exclusive tie up
with Flipkart launched its budget smart phone moto gin India on 5 February 2014 more
than20,000 units were sold within hours of launch on Flipkart after this Flipkart was looking
for a long term tie up with Motorola mobility. They also launched their android smart phone,
the motox, on 19 march 2014. Flipkart later sold the moto e, cheaper than moto g, from 13 may
2014.
The sale of high-end smart phone Xiaomi mi3 produced by Xiaomi tech was launched in India
on an exclusive tie-up with Flipkart. The first batch was sold out within 39 minutes on 22 July
2014,the second in 5 seconds on 29 July 2014.
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The sale was preceded on pre-registration mode where more than 150,000 buyers booked for
the 5 august 2014 sale. This got sold off in less than 2seconds. Following this Xiaomi tech sold
20,000 units in the next sale on 12 august 2014.
On 2 September 2014 Flipkart held a flash sale of the Xiaomi Redmi 1s budget android smart
phone which was launched in India in July 2014. 40, 000 units priced at Rs 5999 each were
sold within seconds.
A further 40,000 units were sold within 4.5 seconds on sept 9, 2014. The third Redmi 1s sale
on sept 16, 2014 sold 40,000 units in 3.4 seconds; in the 4th round of sale of Redmi 1s, 60,000
units sold in 5.2 seconds on sept 23, 2014. On 30 September 2014 60,000 units sold in 13.9
seconds.
Redmi note in India exclusively through Flipkart; 50,000 units sold in 6seconds on 2 December
2014. In July 2014 Flipkart launched its own set of tablet, mobile phones& tablet. The first
among these series of tablet phones was Digi flip pro xt 712 tablet.
In july2014 Flipkart launched its first networking router, under its own brand name named
digiflipwr001 300 mbit/s wireless n routers. In September 2014 Flipkart launched its in-house
home appliances and personal healthcare brand citron. The label includes a wide range of
cooking utilities and grooming products.
Failure in Music Industry
In October and November 2011, Flipkart acquired the websites mime360.com and
chakpak.com. Later, in February 2012, the company revealed its new flyte digital music store.
Flute, a legal music download service in the vein of iTunes and Amazon.com, offered drm-free
mp3 downloads. But it was shut down on 17 June 2013 as paid song downloads did not get
popular in India due to the advent of free music streaming sites.
Marketing strategy
Flipkart has been mostly used marketed by word of mouth. Customer satisfaction has been
their best market medium. Flipkart very wisely used SEO (Search Engine Optimization)&
Google Ad-words as the marketing tools to have a far reach in the online world. All in all to
create a great customer experience. Kids were used to create the adverts to send out the message
-if a kid can do it, we can also do it.
Brand Awareness
Brand Awareness is key success factor in the market. Flipkart is the industry leading with 80%
market share having a very high Brand Awareness and lowest price.
Brand loyalty
Excellent user experience on the e-commerce website in term of usability speed clarity will
enhance the loyalty of existing customer and move a step ahead of brand awareness towards
customer retention.
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Amazon
Amazon.com, founded by Jeff Bezos in 1994, is an American electronic commerce company
with headquarters in Seattle, Washington. Jeff Bezos incorporated the company as “Cadabra”
on July 5, 1994, and the site went online as Amazon.com in 1995.
Bezos changed the name cadabra.com to amazon.com because it sounded too much like
cadaver. Additionally, a name beginning with “A” was preferential due to the probability it
would occur at the top of any list that was alphabetized.
It is the largest Internet based company in the United States. Amazon.com started as an online
bookstore, but soon diversified, selling DVDs, VHSs, CDs, video and
MP3Downloads/Streaming, Software, Video Games, Electronics, Apparel, Furniture, Food,
Toys, and Jewellery.
The company also produces consumer electronics notably, Kindle, Fire Tablets, Fire TV and
Phone and is a major provider of cloud computing services. Amazon has separate retail
websites for United States, United Kingdom & Ireland, France, Canada, Germany, The
Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India and Mexico, with sites for Sri
Lanka and South East Asian countries coming soon.
Amazon also offers international shipping to certain other countries for some of its products.
In the year 2011, it had professed an intention to launch its websites in Poland, and Sweden. In
early June 2013, Amazon.com had launched their Amazon India marketplace without any
marketing campaigns.
In July, 2013, Amazon had announced to invest $2 Billion (Rs 12,000 Crores) in India to
expand business, after its largest Indian rival Flipkart too had announced to invest$1 Billion.
Exclusive products
The Amazon kindle is a series of readers designed and marketed byAmazon.com. Amazon
kindle devices enable users to browse, buy, download and read ebooks, newspapers, magazine
sand other digital media via wireless networking to the kindle store.
The hardware platform, developed by Amazon subsidiary lab126, began as a single device and
now comprises a range of devices, including e-readers with e ink electronic paper displays, and
android- based tablets with colour lcd screens.
All kindle devices integrate with the kindle store to acquire content and as of February 2016,
the store has over 4.3 million e- books available in the us. The one plus one launched as an
Amazon exclusive in India last year, but now the device is available for purchase on rival e-
commerce store Flipkart. Moto g (gen 4) and moto g plus (gen 4) will be available exclusively
on Amazon.
Achievements in E-Commerce
On the mobile app side, Amazon had the fastest growing app download rate in 2015. In October
alone, downloads increased 200 per cent. Amazon web traffic was the highest in October as
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per com score data, at 30 million visitors. Amazon active customers have gone up 230 per cent
year on year.
The awards were conferred at e-tailing India's flagship conference and exhibition 2014, an
event that brought together major stakeholders in the retail and e-commerce business in the
country. The "path-breaking debut of the year" award went to Amazon.in
Failure
Amazon starts using India post and screws up its delivery system in India. At the time when
the competition among online shopping portals in India is at its highest level possible and each
player is pooling in millions from funding’s and trying to beat each other with never-before
discounts and amazing services, Amazon has taken the worst step ever possible.
Amazon India has chosen India post as its primary delivery partner and all “Amazon fulfilled”
orders are now being shipped through India post. Anyone who lives in India or has some
experience with the postal system in India needs no introduction about India post.
When did Amazon start becoming popular and when did Amazon go public?
At the time of its founding, many of Bezos' peers and other critics voiced their skepticism about
his proposed business model. Financial journalists were some of the most vitriolic and often
disparaged the company by referring to it as Amazon.bomb.
Many of them claimed that Amazon.com would ultimately lose out to more established
bookstores. Especially those that were already following suit and starting their own e-
commerce sites.
The very fact that Amazon.com didn't become profitable until the final quarter of 2001 didn't
help things. But Bezos stayed firm and dismissed his naysayers as people who simply didn't
understand the potential for the business.
Bezos argued that in order to succeed as an online retailer, Amazon would need to "Get Big
Fast." And grow it did.
By December of 1996, the company's customer base had grown to an impressive 180,000. By
October of the following year, this figure had leaped to around 1,000,000 registered accounts.
Revenues had reached around $148 million in 1997, a significant jump from around $16 million
in 1996.
Up until this point, Amazon had remained a private company. But Bezos soon realized that he
would need more than just private investment to sustain the company's growth.
And so, in 1997, Amazon.com went public and managed to raise an eye-watering $54
million on the NASDAQ exchange.
In addition to the cash, the company was able to use its stock sales to fund its aggressive growth
and acquisition strategy.
By 1998, Amazon's revenues had reached an impressive $600 million.
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Amazon's meteoric rise in such a short time frame catapulted Bezos into the public eye. He
was also chosen to be Time magazine's 1999 Person of the Year.
At around the same time, Amazon launched its now highly lucrative Affiliate program.
By joining the program, other companies advertised Amazon's merchandise for sale on their
own platforms. Amazon would then fulfill the order and pay a commission — win, win.
The program proved to be a savvy business decision. It grew from one Associate in 1996 to
well over 350,000 by the close of 1999.
How does Amazon use technology to increase efficiency?
Apart from its near-universal appeal as a kind of one-stop-shop, Amazon has also taken
advantage of the latest technological innovations to increase its efficiency and service to its
customers.
From the use of AI to handle and process orders or recruit to experimenting with drones and
robots for order fulfillment and delivery, Amazon is certainly not afraid of testing out the latest
innovation in tech.
This approach, however, been both good and bad.
For example, a machine-learning recruitment tool the company adopted, though apparently
was not used in the final decision process, was later shown to have an apparent bias against
certain groups of people for software developers and other technical positions. Once the issue
was discovered, Amazon duly canceled the product.
Amazon has also adopted automated processes for firing, as well as hiring. Such systems have
been criticized for making decisions without being able to take into consideration all factors —
like issues in someone's personal life, etc. Software solutions, like Amazon's "Anytime
Feedback Tool", for example, enable staff to either praise or criticize their coworkers.
This same software also tracks an employee's performance against set Key Performance
Indicators (KPIs) whilst handling orders from customers. While mistakes do happen and are
expected, Amazon has been criticized for the pressure it appears to be putting some of its
warehouse staff under — even claims that staff can be automatically fired should their
performance be deemed unacceptable.
However, it is important to note that Amazon wholeheartedly denies such practice.
"It is absolutely not true that employees are terminated through an automatic system. We would
never dismiss an employee without first ensuring that they had received our fullest support,
including dedicated coaching to help them improve and additional training," an Amazon
representative told MIT Technology Review.
Amazon has also been adopting more and more automated solutions to increase efficiency in
its fulfillment centers, like the use of robots to find and retrieve items. However, for the time
being, at least, human workers are still a key part of Amazon's delivery service — especially
when it comes to packing items and dealing with customer service.
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What made Amazon so popular?
The main appeal of Amazon in its early days was one of pure convenience. No longer did a
potential customer need to visit a physical bookstore to get the book they were looking for.
The ability to search, select and purchase a book from the comfort of your own home was an
amazing innovation at the time. Not only that, but Amazon would deliver your purchase to
your front door within days.
The very fact that they began to offer more and more different products only broadened its
appeal to more and more customers. But it wasn't really about the goods they were selling.
Amazon's success owed, like many other successful companies, to the service that they offered.
This gained them significant customer loyalty, and as a result, big profits in the long run.
Another innovation Amazon made for its customers was its recommended product function.
By offering other products to upsell, based on the customer's previous purchases, Amazon was
able to increase its revenue even more.
The addition of customer reviews of products also helped to foster a kind of "customer
community" that made the site, and its wares, more appealing to potential new customers.
In recent years, Amazon has reached new heights, like becoming the second-ever $1 trillion
market cap company in history (Apple got there first, believe it or not). After announcing, and
then canceling plans to build its second HQ in New York following political pressure, Amazon
would see record growth during 2020.
With many people stuck at home during the pandemic, Amazon, and other online retailers
enjoyed something of a field day.
The most recent major news in Amazon's more than 25 years in business, was the
announcement that Bezos has decided to step down as the company's CEO as of fall 2021. How
the company will perform with Bezos not behind the wheel is yet to be seen, but if past
performance is anything to go by, it is bound to be a highly successful one.
That is, of course, unless calls to break up Amazon gain serious traction in the public eye. As
they say, time will tell.
14
Shop Clues
Shop Clues was founded in July 2011 and the mastermind powering the venture was Sandeep
Aggarwal, one of the co-founders of the company. The other co-founders of Shop Clues are
Sanjay Sethi, CEO of Shop Clues and Radhika Aggarwal, Chief Business Officer (CBO). Shop
Clues is headquartered in Gurugram and is an Indian subsidiary of US-based Clues Network
Inc.
Shop Clues was founded with the goal of providing the best bargains to people of India. It is
common knowledge that buyers in the country will visit multiple stores to get the best deals.
This is the primary need that Shop Clues fulfilled by launching the country’s first and largest
fully managed marketplace.
Shop Clues currently offers a wide range of products and services, spread across various
categories such as mobile & tablets, computers, laptops, appliances, home & kitchen, fashion,
footwear, travel & luggage, automotive, jewelry & watches, toys, baby & kids, gourmet &
daily needs, sports and health, and beauty & perfumes.
Shop Clues is popular for delivering the cheapest deals in the market via its merchants that are
now more than 5 lakh in number. Shop Clues gets 100 million visits every month, has more
than 8.5 million products and delivers to around 30,000 destinations in India.
Shop Clues is also known to source merchandise from various leading markets in the country,
which has benefited both sellers and buyers. Shop Clues started with just 5 employees in 2011,
but now it is 1,000+ and growing.
History:
Shop Clues started operations in 2011 via Facebook with a team size of 5 members. The plan
was to provide the best deals to buyers, knowing quite well that people in India are always
looking for the best bargains. The company launched its app and the country’s first Wholesale
Marketplace (TVC) in 2014.
In 2016, Shop Clues came to be listed amongst the top e-commerce companies in India, as it
crossed 100 million visits per month. In the same year, Shop Clues increased its merchant base
to more than half million.
Funding:
Shop Clues has received funding worth $139 million (approx.) from various sources. Top
investors include GIC, Helion Venture Partners, InnoVen Capital, LionBird, Nexus Venture
Partners, and Tiger Global Management. The company is now a ‘Unicorn’, which is the title
given to a company whose valuation crosses $1 billion. Shop Clues is also planning to launch
its Initial Public Offering (IPO) soon.
Acquisitions:
Shop Clues acquired Momoe in 2016 for around $12 million. Momoe is a Bengaluru-based
startup focused on mobile payments system.
15
Competition:
Shop Clues competes with other e-commerce companies in India such as Amazon India, Flip
Kart, Snapdeal, etc.
About the Founders:
Shop Clues was founded by Sandeep Aggarwal, Sanjay Sethi and Radhika Aggarwal. Sandeep
Aggarwal had previously worked with various other companies in Silicon Valley. He had
completed his MBA from Washington University in St. Louis. Sanjay Sethi is the CEO of Shop
Clues and an alumnus of Indian Institute of Technology (BHU) Varanasi. Radhika Aggarwal
is the Chief Business Officer (CBO) and she completed her MBA from Washington University
in St. Louis.
16
1.3 STATEMENT OF THE PROBLEM:
India e-commerce evaluated like a giant with huge opportunity and success rate. There are so
many big and small players in market. Are they really going to sustain in market for a long
time and is there success rate for them. What are customers expecting from them and are they
ready to fulfil their requirements. The study is to understand both parties’ requirements and
procedures..
1.4 OBJECTIVES:
• To understand and estimate the consumer perception and factors affecting their
behaviour for choosing e-commerce sites.
• To understand tactics and methods that are used by e-commerce players to grab the
customers in India.
• To know how consumers are evaluating e-commerce sites for their purchases.
• To understand the work flow of Amazon and Flipkart which are leading in India.
• To study complexities and barriers those are there in between e-commerce sites and
customers.
• To find out new opportunities and to succeed in those procedures.
1.5 SCOPE AND SIGNIFICANCE OF STUDY
Scope of the study can result in a way that banks can be benefited by knowing the information
about customer preference and expectation with reference to their services and dealing of the
personnel. So that they can improve their services as per the customer expectations.
1.6 LIMITATION OF THE STUDY
• Time Constraints.
• Due to pandemic respondents were not freely available to approach.
• Sometimes the customer was not feeling suitable to share their details and feedback
about their banks.
• There was so much confidential data of companies that are not exposed.
• Survey was restricted to particular age group because respondents willing to fill are
college students.
• Analysis was done based upon personal opinion of respondents individually, not from
any focus groups or experts.
17
CHAPTER II
REVIEW OF LITERATURE
2.1 Overview of Review of Literature:
This makes a brief review of the literature relevant to the study. (There is only very limited
studied which are directly relevant to the study concerned). Research era has made an attempt
a review of the literature available which consists of articles, journals.
2.2 Review of Literature:
Sharma and mittal (2009) in their study “prospects of e-commerce in India”, mentions that
India is showing tremendous growth in the e-commerce. Undoubtedly, with the middle class
of 288 million people, online shopping shows unlimited potential in India. The real estate costs
are touching the sky. Today e-commerce has become an integral part of our daily life. There
are websites providing any number of goods and services. The e-commerce portals provide
goods and services in a variety of categories. To name a few: apparel and accessories for men
and women, health and beauty products, books and magazines, computers and peripherals,
vehicles, software, consumer electronics, household appliances, jewelry, audio, video,
entertainment, goods, gift articles, real estate and services. Ashish gupta, senior managing
director of helion venture partners and one of the first backers of Flipkart as an angel investor:
“Flipkart has been absorbing companies that have some potential (letsbuy, myntra). In that
process, some of the bets will go wrong, for sure. But that is par for the course. The company
(Flipkart) is consciously taking bets that allow it to either grow or eliminate competition that
reduces marketing spend and improves economics.”
Miyazaki and fernandez (2001) substantiated that the prior experience was found to affect
the intention and behaviour significantly and in a variety of ways. The results of this study
imply that the technology acceptance model should be applied to electronic commerce research
with caution.
In order to develop a successful and profitable web shop, understanding customers' needs is
essential. It has to be ensured that products are as cheap in a web shop as purchased from
traditional channels. According to Sharma and Mittal (2009) in their study “prospects of e-
commerce in India”, mentions that India is showing tremendous growth in the e-commerce.
Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited
potential in India. The real estate costs are touching the sky. Today e-commerce has become
an integral part of our daily life. There are websites providing any number of goods and
services. The e-commerce portals provide goods and services in a variety of categories.
To name a few: apparel and accessories for men and women, health and beauty products, books
and magazines, 6 computers and peripherals, vehicles, software, consumer electronics,
household appliances, jewelry, audio, video, entertainment, goods, gift articles, real estate and
services. Samadi and ali (2010) compared the perceived risk level between internet and store
shopping, and revisit the relationships among past positive experience, perceived risk level,
and future purchase intention within the internet shopping environment.
Abhijit mitra. (2013), “e-commerce in India-a review”, international journal of marketing,
financial services & management research. Concluded that the e-commerce has broken the
18
geographical limitations and it is a revolution-commerce will improve tremendously in next
five years in India.
D.k.gangeshwar. (2013),” e-commerce or internet marketing: a business review from Indian
context”, international journal of u- and e- service, science and technology. Concluded that the
e-commerce has a very bright future in India although security, privacy and dependency on
technology are some of the drawbacks of e-commerce but still there is a bright future to e-
commerce.
Martin dodge. (1999),”finding the source of Amazon.com: examining the hype of the earth’s
biggest book store”, center for advanced spatial analysis. Concluded that Amazon.com has
been one of the most promising e-commerce companies and has grown rapidly by providing
quality service.
Vijay Govindarajan is one of the world’s leading experts on strategy and innovation.
Govindarajan, coxe distinguished professor at Dartmouth college’s tuck school of business and
marvin bower fellow at Harvard business school, is also a best-selling author. The biggest
opportunity in India is e-commerce.
Why? Three important factors will drive this:
1) mobile phone penetration;
2) a young demographic that is used to ordering things using the mobile platform;
3) growth of consumerism with more Indians with higher disposable income.
We will see many new innovative business models in the e-commerce space in the next five
years. No doubt we will see new innovative high-growth companies—Indian equivalents of
Alibaba.
Dr. Sudha S (2015), Innovation brings with itself a new set of challenges. The E-Retailing
form of market was fairly something unheard of to the Indian consumer in 2007. Flipkart which
has carved a niche for itself in terms of market share, goodwill and popularity in the online
market to the extent that retailers are coming under threat because of its discounts and smooth
operations. The ascent of Flipkart to capture the online market in India in just four years, the
strategies implemented by it to create online business ,its ability to stand out among numerous
E-Retail sites. This case study aims to understand the marketing strategy, brand awareness,
SWOT analysis, functioning of Flipkart. It aims to predict the future roadmap and also aims to
find significant threats to Flipkart in the near future.
Pooja Gupta (2015), The study tries to recognize that, how consumer measure channels for
their purchasing. Specifically, it progresses a conceptual model that addresses consumer value
perception for using the internet shopping versus the traditional shopping. Earlier study showed
that perceptions of price, product quality, service quality and threat strongly impact perceived
value and purchase intents in the offline and online network. Observations of online and offline
buyers can be evaluated to see how value is constructed in both channels. It is hitherto to
recognize what factors influence online and offline shopping choice progression. The objective
of this study is to provide an impression of online shopping decision process by comparing the
offline and online decision making and identifying the factors that motivate customers to decide
whether to do online shopping or go for the offline shopping. Consumer’s shop when and where
they want, where they are comfortable with the products and the choice of shopping. The study
finds that female are more into online shopping than male.
19
K Francis Sudhakar (2016), Internet became more powerful and basic tool for every person’s
need and the way people work. By integrating various online information management tools
using Internet, various innovative companies have set up systems for taking customer orders,
facilitate making of payments, customer service, collection of marketing data, and online
feedback respectively. These activities have collectively known as e-commerce or Internet
commerce. Online shopping made so easy for everyone with their product variations and
simple way to buy things. An attempt has been made to critically examine various corporate
and business level strategies of two big e-tailers and those are Flipkart and Amazon.
Comparison have been done considering e-commerce challenges, their business model,
funding, revenue generation, growth, survival strategies, Shoppers’ online shopping
experience, value added differentiation, and product offerings
20
CHAPTER III
RESEARCH METHODOLOGY
3.1 OVERVIEW OF RESEARCH METHODOLOGY
Research is an art of scientific investigation. In other word research is a scientific and
systematic search for pertinent information on a specific topic. The logic behind taking research
methodology into consideration is that one can have knowledge about the method and
procedure adopted for achievement of objectives of the project. With the adoption of this others
can evaluate the results also. Its main aim is to keep the researchers on the right track.
It describes the data collection method, the sampling plan, the tools of investigation, planning
and testing of questionnaire and the limitations of the study. The study requires the data to be
collected from two different sources i.e. the primary source and the secondary source.
TYPE OF RESEARCH
DESCRIPTIVE RESEARCH: Descriptive research includes surveys and fact – finding
enquires of different kinds. The major purpose of descriptive research is description of the state
of affairs as it exists at present. In social science and business research we often use the term
Ex post facto research for descriptive research studies. The main characteristic of this method
is that the researcher has no control over the variables; he can only report what has happened
or what is happening
3.2 RESEARCH DESIGN
The design of a research is a plan or a model that helps researcher to conduct a formal
investigation and survey. It is an application of methods and procedures for acquiring the
information needs for getting a desire outcome. It decides the sources of data and methods for
gathering data.
A good design insures that the information obtained is relevant to the research question and
that it was collected by objectives. Since, research design is simply the frame work or plan for
a study. It is a blue print that of a house devised by an architect. My approach to research is
descriptive and quite specific.
Out of these all research methods the research method, which was most suitable to this research
was descriptive research because it provides us all the opportunities to cover all the aspect that
is required to conduct the research and get an appropriate outcome.
3.3 POPULATION/ SAMPLE SIZE
It is true that it is very difficult to do research with whole universe. So, for this purpose sample
size has to be determined well in advanced and selection of the sample also has to be scientific
so that it represents the whole universe.
21
So far as this research is concerned, the sample size is 60.
3.4 MODE OF DATA COLLECTION
As learning is a human activity and is as natural as breathing. Despite the fact that learning is
all pervasive in our lives, psychologists do not agree on how learning takes place. How
individuals learn is a matter of interest to marketers.
They want to teach consumers in their roles as their roles as consumers. They want consumers
to learn about their products, product attributes, potential consumers benefit, how to use,
maintain or even dispose of the product and new ways of behaving that will satisfy not only
the consumer’s needs, but the marketer’s objectives.
There are 2 sources of data i.e.
A) Primary Data: The data, which are collected for the first time, directly from the respondents
to the base of knowledge & belief of the research, are called primary data. The normal
procedure is to interview some people individually or in a group to get a sense of how people
feel about the topic. So far as this research is concerned, primary data is the main source of
information provided by the respondents by the way of questionnaire send to them.
B) Secondary Data: When the data is collected and compiled in a published nature it is called
Secondary data. The data can be taken from internet, many brochures, previous project reports
and magazines have been referred too. For this research, researcher have selected primary data
to complete the research with.
Researcher have asked consumers to fill up the questionnaire so that researcher could gather
the data for the research.
3.5 TOOLS AND TECHNIQUES:
The data was collected through questionnaire method . Again, the research is descriptive type.
The analysis is done through the tabular and graphical representation.
ANALYSIS OF DATA:
• Nature of Research - Descriptive
• Research Approach - Survey
• Sample Size – 60
• Sampling Criteria - Random Sampling
• Research instrument – Questionnaires
22
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
4.1 INTRODUCTION TO DATA ANALYSIS
Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data.
While data analysis in qualitative research can include statistical procedures, many times
analysis becomes an ongoing iterative process where data is continuously collected and
analysed almost simultaneously.
4.2 DATA ANALYSIS AND INTERPRETATION
Age
• 15 to 25 years
• 25 to 35 years
• Above 35 years
INTERPRETATION: - It clearly shown that 66.7% between the age of 15 to 25 years are
using ecommerce sites more, age group of 35 years and above also using with 18.3% and only
15% of respondents with age group of 25 to 35 years are using less ecommerce sites.
23
Gender
Male
Female
INTERPRETATION: - It was found that male respondent are using more ecommerce site with ration
of 60% and 40% used by female respondent
24
Occupation:
a. Businessman
b. Job’
c. Student
d. Unemployed
e. Other
INTERPRETATION:- In this response we can see that most of the response we get from the
student with 56.7% after that 13.3% response are business which are using e commerce, and
people who having job also filled and we get 15% responses
25
Income (Monthly):
a. Less than 25000
b. 25000 – 50000
c. 50000 – 100000
d. 100000 – 200000
e. More than 200000
INTERPRETATION:- It was found that 65% respondent are for below the income level of
25000, 15% respondent are of above 200000 income bracket,8.3% respondents lies in the
category of 25000 to 50000, 6.7% respondents lies in the income category of 50000 to 100000
and 5% respondents lies in the income category of 100000 to 200000.
26
For how long you are using E-commerce sites? (Duration in Time)
0 - 5 years
a. Flipkart
b. Amazon
c. Shop clues
INTERPRETATION:- It was found that both Amazon and Flipkart having equal percentage
38.5% and using ecommerce site for (0 to 5 years) and only 23.1% respondent are using Shop
Clues for (0 to 5 years).
27
5 – 10 years:
INTERPRETATION:- It was found that Amazon is used more in 5 to 10 years of time with
91.2% and a very less percentage hold by flipkart with 8.8% between 5 to 10 years
28
10 – 15 years:
INTERPRETATION:- It is found that 63.6% respondent using amazon from 10 to 15 years
and 27.3% respondent using flipkart from 10 to 15 years and only 9.1% using Shop Clues for
10 to 15 years of time
29
15 years and above
INTERPRETATION:- It was found that amazon hold 68.8% of responses for using their site
for more than 15 years and only 31.3% respondent using flipkart for 15 and above
30
Which online websites you prefer most to buy online products?
a. Amazon
b. Flipkart
c. Shop Clues
d. Other
INTERPRETATION:- From the above response it clearly shown that 80% of response prefer
amazon for buying online products and 13.3% prefer to buy form flipkart and only 6.7% prefer
for Myntra
31
How often you shop online?
a. Once in a month’
b. Once in a two month
c. More frequently
d. Very rare
INTERPRETATION:- From the above responses we can see that 41.7%responednt shop
online once in a month, 26.7% shop online more frequently , 18.3% shop very rare only in
need they but and 13.3% respondent buy once in a two month to shop online
32
Which payment method you use most buy product?
a. Debit card
b. Credit card
c. Cash on delivery
d. Net banking
e. UPI
INTERPRETATION:- It was found that cash on delivery payment method used y respondent
is 51.7% after that 10% of them prefer to buy the way of debit card, 6.7% goes to credit card
option to buy product, we also see that 5% prefer to give payment by the way of UPI method
and 6.7% prefer form both debit card and COD or 5% respondent payment through COD and
net banking
33
What motivates you choose this e-commerce site.
a. Online review
b. Referred by friends
c. Advertisement
d. Magazines
INTERPRETATION: - From the above responses we can see that 53.3% respondent get
motivates from online review to choose Ecommerce site and 28.3% get motivated from
advertisement with site f=give better advertisement, 16.7% get motivates from friend referring
to choose site to but product and only 1.7% respondent get motivates from magazines
34
Which websites offers you most satisfactory pricing
a. Amazon
b. Flipkart
c. Shopclues
d. Other
INTERPRETATION: - From the above response Amazon offer most satisfactory pricing with
ratio of 71.7%, flipkart hold 15% satisfactory pricing and 13.3% respondent not compared
which sites offer them best satisfactory pricing
35
Which websites offers you more discount on product?
a. Amazon
b. Flipkart
c. Shopclues
d. Other
INTERPRETATION:- It is found that 70% of respondent feels amazon offers more discount
on products, 18.3% respondent see flipkart offer more discount on products and 11.7% given
to Myntra for offering better discounts ion products
36
Which E-commerce site gives you more bank discount and cash bank?
a. Amazon
b. Flipkart
c. Shopclues
d. Other
INTERPRETATION:- It was found that amazon gives mot=re bank discount and cash back
with 83.3% and 10% & 6.7% given to flipkart and Myntra for offering bank discount and cash
bank
37
Which E-commerce site you suggest to others.
a. Amazon
b. Flipkart
c. Shopclues
d. Other
INTERPRETATION:- From the above response’s 81.7% respondent suggest amazon to
others and 11.7% respond feel to suggest flipkart and only 6.7% suggests Myntra to others.
38
In festive seasons which site you choose most for shopping?
a. Amazon
b. Flipkart
c. Shopclues
d. Other
INTERPRETATION: - It is found that in festive seasons site used most for shopping is
Amazon with 66.7%, and other gives equal ratio to Flipkart & Nykaa with 11.7% & 11.7% and
only 10% given to Myntra
39
Rate the product received form E-Retailers from 0 to 5?
a. 0
b. 1
c. 2
d. 3
e. 4
f. 5
INTERPRETATION – From the above respondents, we can say that 50% respondents gave
4 rating out of 5 followed by 25% respondents gave 3 out of 5 and 23.3% respondents gave 5
out of 5 ratings and only 1.7% respondents gave 2 out of 5 ratings.
From the above graph we can say that the respondents are quite satisfied with the product
offered by the e commerce sites and none of the respondents gave the least rating by which we
can say that the e commerce market is good.
40
From which of the company you have faced problem more
a. Amazon
b. Flipkart
c. Shopclues
INTERPRETATION: - It found that consumer faced problem with flipkart more with 40%,
respondent also faced problem with amazon with 33.3% and less problem faced by ShopClues
that is 26.7%.
41
Which kind of the problem you have faced from your E-Retailers.
Delay in deliveries
a. Amazon’
b. Flipkart
c. Shopclues
INTERPRETATION: - From the above responses we can see that consumer face delay in
their deliveries with flipkart more with 45% after that ShopClues also delay in deliveries with
41.7% and people faces less chance of delay in their deliveries with amazon i.e. 13.3%
42
Product Damage:
a. Amazon
b. Flipkart
c. Shopclues
INTERPRETATION: - From the above responses we can see that consumer face product
damages while receiving the product with ShopClues more with 43.3% after that consumer
also faces the product damages with flipkart with 38.3% and less chance of damage product is
with amazon with 18.3%
43
Cheap Quality of product:
a. Amazon
b. Flipkart
c. Shopclues
INTERPRETATION: - From the above responses we can see that consumer faces cheap
quality of product with ShopClues with 41.7%, after that they also faced same cheap quality
in flipkart with 31.7% and less in amazon with 26.7%.
44
Non- delivered:
a. Amazon
b. Flipkart
c. Shopclues
INTERPRETATION: - From the above responses we can see that consumer face Non-
delivered of their product with ShopClues more with percentage of 55% and respondent also
faces problem with non-delivered product with flipkart with 35% and only 10% respondents
faces issues with amazon for Non-delivered product
45
Others:
a. Amazon
b. Flipkart
c. Shopclues
INTERPRETATION: - From the above responses we can see that consumer face others
problem also from their E-retailers like customer care behaviors, delivery boy behaviors,
packaging issues and many more, so respondent face different problem more with ShopClues
with 55%, few respondent faces with flipkart with 28.3% and less respondent face problem
with amazon with 16.7%.
46
Kindly evaluate the satisfactory level
Flipkart
a. Highly satisfactory
b. Satisfactory
c. Neutral
d. Dissatisfactory
e. Highly dissatisfactory
INTERPRETATION: - It is found that form flipkart 50% of respondent are satisfied with
their services and other things , few respondent are neutral with 38.3% as they confused or with
their services or else , 8.3% respondent are highly satisfied with flipkart and 1.7% & 1.7%
given to respondent who are highly dissatisfies or dissatisfied.
47
Amazon
a. Highly satisfactory
b. Satisfactory
c. Neutral
d. Dissatisfactory
e. Highly dissatisfactory
INTERPRETATION: - From the above responses we can see that 51.7% of respondent are
highly satisfied with amazon services and their products, after that 38.3% respondent are only
satisfied with them and few of them with 10% are neutral with amazon service and their product
48
Shopclues
a. Highly satisfactory
b. Satisfactory
c. Neutral
d. Dissatisfactory
e. Highly dissatisfactory
INTERPRETATION: - From the above responses we can see that 58.3% respondent are
neutral, 16.7% respondent are satisfied with ShopClues with their services and their product
15% are dissatisfied with them as they sometimes get disappointment with company services
8.3% are highly dissatisfied with them as they faces issues with company work and behavior
with consumers
49
CHAPTER V
FINDING AND SUGGESTIONS
5.1 FINDINGS:
• It clearly shown that 66.7% between the age of 15 to 25 years are using ecommerce sites more, age
group of 35 years and above also using with 18.3% and only 15% of respondents with age group of
25 to 35 years are using less ecommerce sites.
• It was found that male respondent are using more ecommerce site with ration of 60% and 40% used
by female respondent
• In this response we can see that most of the response we get from the student with 56.7% after that
13.3% response are business which are using e commerce, and people who having job also filled
and we get 15% responses
• It was found that 65% respondent are for below the income level of 25000, 15% respondent are of
above 200000 income bracket,8.3% respondents lies in the category of 25000 to 50000, 6.7%
respondents lies in the income category of 50000 to 100000 and 5% respondents lies in the income
category of 100000 to 200000
• It was found that both Amazon and Flipkart having equal percentage 38.5% and using ecommerce
site for (0 to 5 years) and only 23.1% respondent are using Shop Clues for (0 to 5 years).
• It is found that 63.6% respondent using amazon from 10 to 15 years and 27.3% respondent using
flipkart from 10 to 15 years and only 9.1% using Shop Clues for 10 to 15 years of time
• It was found that amazon hold 68.8% of responses for using their site for more than 15 years and
only 31.3% respondent using flipkart for 15 and above
• From the above response it clearly shown that 80% of response prefer amazon for buying online
products and 13.3% prefer to buy form flipkart and only 6.7% prefer for Myntra
• From the above responses we can see that 41.7%responednt shop online once in a month, 26.7%
shop online more frequently , 18.3% shop very rare only in need they but and 13.3% respondent
buy once in a two month to shop online
• It was found that cash on delivery payment method used y respondent is 51.7% after that 10% of
them prefer to buy the way of debit card, 6.7% goes to credit card option to buy product, we also see
that 5% prefer to give payment by the way of UPI method and 6.7% prefer form both debit card
and COD or 5% respondent payment through COD and net banking
• From the above responses we can see that 53.3% respondent get motivates from online review to
choose Ecommerce site and 28.3% get motivated from advertisement with site give better
50
advertisement, 16.7% get motivates from friend referring to choose site to but product and only 1.7%
respondent get motivates from magazines
• From the above response Amazon offer most satisfactory pricing with ratio of 71.7%, flipkart hold
15% satisfactory pricing and 13.3% respondent not compared which sites offer them best satisfactory
pricing
• It is found that 70% of respondent feels amazon offers more discount on products, 18.3% respondent
see flipkart offer more discount on products and 11.7% given to Myntra for offering better discounts
ion products
• From the above response’s 81.7% respondent suggest amazon to others and 11.7% respond feel to
suggest flipkart and only 6.7% suggests Myntra to others.
• It is found that in festive seasons site used most for shopping is Amazon with 66.7%, and other gives
equal ratio to Flipkart & Nykaa with 11.7% & 11.7% and only 10% given to Myntra
• From the above respondents, we can say that 50% respondents gave 4 rating out of 5 followed by
25% respondents gave 3 out of 5 and 23.3% respondents gave 5 out of 5 ratings and only 1.7%
respondents gave 2 out of 5 ratings.
• From the above graph we can say that the respondents are quite satisfied with the product offered by
the e commerce sites and none of the respondents gave the least rating by which we can say that the
e commerce market is good.
• It found that consumer faced problem with flipkart more with 40%, respondent also faced problem
with amazon with 33.3% and less problem faced by ShopClues that is 26.7%.
• From the above responses we can see that consumer face delay in their deliveries with flipkart more
with 45% after that ShopClues also delay in deliveries with 41.7% and people faces less chance of
delay in their deliveries with amazon i.e. 13.3%
• From the above responses we can see that consumer face product damages while receiving the
product with ShopClues more with 43.3% after that consumer also faces the product damages with
flipkart with 38.3% and less chance of damage product is with amazon with 18.3%
• From the above responses we can see that consumer faces cheap quality of product with ShopClues
with 41.7%, after that they also faced same cheap quality in flipkart with 31.7% and less in amazon
with 26.7%.
• From the above responses we can see that consumer face Non-delivered of their product with
ShopClues more with percentage of 55% and respondent also faces problem with non-delivered
product with flipkart with 35% and only 10% respondents faces issues with amazon for Non-
delivered product
• From the above responses we can see that consumer face others problem also from their E-retailers
like customer care behaviors, delivery boy behaviors, packaging issues and many more, so
respondent face different problem more with ShopClues with 55%, few respondent faces with
flipkart with 28.3% and less respondent face problem with amazon with 16.7%.
51
5.2 SUGGESTIONS
ShopClues is performing ok but not good enough. There are so many cases where people felt
that packing might have been better than this. Either it may be big or small / expensive or not
product has to be treated with care. As it same with flipkart as their packaging in not good
enough and not maintain proper deliveries as we see in questioner many respondents felt that
problem
Some of the products mostly apparels are turning out with original cover of supplier, which
shows negligence of them. In this issue Amazon made a mark among us, because whatever the
product is their packing will obviously safe and secure.
All ecommerce sites need to arrange better service to serve their consumer as consumer the
king of the market and they need to gain trust of them and try to introduce different thing as
it’s a competitive market.
Expanding what you sell is another great way to grow your retail business. As long as the
growth is in line with your established brand image, it’s wise to introduce new products or
services.
As amazon also entered in movies and book section flipkart and ShopClues can also try to
entered in these types of thing to expand their services.
52
5.3 CONCLUSION
The study consisted with all the work flows of major e-commerce players in India, Flipkart and
Amazon. How they are performing and how they are running perfectly in the competitive world
has been explained.
The innovative thinking of them to reach more and more consumers is appreciable. They
increased their network as much as possible with ultimate aim of reaching more and more
customers.
They made consumers work easier and more comfortable. In this competitive market one has
to be lead and rest will follow. Based upon consumer’s survey we got our clear winner and it
is Amazon.
Even though it is an international company it understood Indians very well and made its roots
stronger in India. Flipkart is also giving very tough competition to Amazon even though it is
new company when compared to Amazon.
Maybe it takes some time to overcome, but definitely they are doing very well in Indian e-
commerce market
53
REFERENCES
• https://adalyajournal.com/gallery/103-nov-2345.pdf
• https://www.managementstudyguide.com/customer-satisfaction.htm
• https://www.ukessays.com/essays/marketing/the-customer-satisfaction-model-
marketing-essay.php
• https://www.fibre2fashion.com/industry-article/5037/introduction-to-electronic-
retailing
• https://interestingengineering.com/a-very-brief-history-of-amazon-the-everything-
store
• https://www.startupopinions.com/flipkart-company-profile/
• http://www.newspatrolling.com/shopclues-company-profile/
• https://koronapos.com/blog/how-to-grow-a-retail-business/
54
ANNEXURE
Questionnaire
Dear Respondents,
1. Name:
2. Age
• 15 to 25 years
• 25 to 35 years
• Above 35 years
3. Gender
• Male
• Female
4. Occupation:
• Businessman
• Job’
• Student
• Unemployed
• Other
5. Income (Monthly):
• Less than 25000
• 25000 – 50000
• 50000 – 100000
• 100000 – 200000
• More than 200000
6. For how long you are using E-commerce sites? (Duration in Time)
• 0 - 5 years
• 5 – 10 years
• 10 - 15 years
• 15 years and more
7. Which online websites you prefer most to buy online products?
• Amazon
• Flipkart
• Shop Clues
55
• Other
8. How often you shop online?
• Once in a month’
• Once in a two month
• More frequently
• Very rare
9. Which payment method you use most buy product?
• Debit card
• Credit card
• Cash on delivery
• Net banking
• UPI
10. What motivates you choose this e-commerce site.
• Online review
• Referred by friends
• Advertisement
• Magazines
11. Which websites offers you most satisfactory pricing
• Amazon
• Flipkart
• Shopclues
• Other
12. Which websites offers you more discount on product?
• Amazon
• Flipkart
• Shopclues
• Other
13. Which E-commerce site gives you more bank discount and cash bank?
• Amazon
• Flipkart
• Shopclues
• Other
14. Which E-commerce site you suggest to others.
• Amazon
• Flipkart
56
• Shopclues
• Other
15. In festive seasons which site you choose most for shopping?
• Amazon
• Flipkart
• Shopclues
• Other
16. Rate the product received form E-Retailers from 0 to 5?
• 0
• 1
• 2
• 3
• 4
• 5
17. From which of the company you have faced problem more
• Amazon
• Flipkart
• Shopclues
18. Which kind of the problem you have faced from your E-Retailers.
1. Delay in deliveries
• Amazon’
• Flipkart
• Shopclues
2. Product Damage:
• Amazon
• Flipkart
• Shopclues
3. Cheap Quality of product:
• Amazon
• Flipkart
• Shopclues`
4. Non- delivered:
• Amazon
• Flipkart
57
• Shopclues
5. Others:
• Amazon
• Flipkart
• Shopclues
6. Kindly evaluate the satisfactory level
1. Flipkart
• Highly satisfactory
• Satisfactory
• Neutral
• Dissatisfactory
• Highly dissatisfactory
2. Amazon
• Highly satisfactory
• Satisfactory
• Neutral
• Dissatisfactory
• Highly dissatisfactory
3. Shopclues
• Highly satisfactory
• Satisfactory
• Neutral
• Dissatisfactory
• Highly dissatisfactory

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Final project report CUSTOMER SATISFACTION LEVEL FOR CONSUMERS WITH REFERENCE TO E RETAILERS AMAZON, FLIPKART & SHOPCLUES

  • 1. i COMPARATIVE STUDY ON CUSTOMER SATISFACTION LEVEL FOR CONSUMERS WITH REFERENCE TO E RETAILERS AMAZON, FLIPKART & SHOPCLUES Submitted in partial fulfilment of the requirement for Master of Business Administration (MBA) 4th Semester Course Requirement By COURSE CODE: 11010600 NAME: ARHAM BOTHRA ROLL NO: 1911421002 Under the guidance of Mr. Sandeep Saxena SCHOOL OF COMMERCE AND MANAGEMENT RNB GLOBAL UNIVERSITY BIKANER, RAJASTHAN April – 2021
  • 2. ii BONAFIDE CERTIFICATE This is to certify that Arham Bothra are Bonafide Students of School of Commerce and Management, RNB Global University, Bikaner, Rajasthan. They are in the 4th semester of Master of Business Administration Program (MBA). They have done this Final-project report under my guidance/supervision towards partial fulfilment of the Final year MBA course requirement. Dr. Yuvraj Bhatnagar Mr. Sandeep Saxena (Dean of Academics) (Faculty Coordinator) Date: Place:
  • 3. iii DECLARATION I Arham Bothra studying in 4th Semester MBA program at School of Commerce and Management, RNB Global University, Bikaner, Rajasthan. We, at this moment, declare that this Final project is an original work of ours, and we have not verbatim copied/duplicated any material from sources like the internet or from print media, excepting some vital company information/statistics and data that are provided by the company itself. Signature of the Students Date: Place:
  • 4. iv ACKNOWLEDGMENT This report would not have been possible without the assistance and participation ofmany people. We sincerely appreciate and acknowledge their contribution. But in particular we would extend our gratitude to RNB Global University for providing us such platform where we can get chance to enhance our personal as well as professional skills. We are also thankful to Mr. Sandeep Saxena for giving us motivation and encouragement and keeping us on right path so that we can complete our project successfully. Without his constant guidance, this report would not have been possible. We are grateful to all those respondents who have given their contribution in filling the survey forms, for their kind cooperation and encouragement which helped us in completion of this project. Lastly, we acknowledge our colleagues and all other people who directly or indirectly helped during this project report. Arham Bothra
  • 5. v ABSTRACT Internet became more powerful and basic tool for every person’s need and the way people work. By integrating various online information management tools using Internet, various innovative companies have set up systems for taking customer orders, facilitate making of payments, vi customer service, collection of marketing data, and online feedback respectively. These activities have collectively known as e-commerce or Internet commerce. Online shopping made so easy for everyone with their product variations and simple way to buy things. An attempt has been made to critically examine various corporate and business level strategies of two big e-tailers and those are Flipkart and Amazon. Comparison have been done considering e-commerce challenges, their business model, funding, revenue generation, growth, survival strategies, Shoppers’ online shopping experience, value added differentiation, and product offerings. Both these big players made their own mark in India, but who is going to be ultimate winner or be the top one is going to be.
  • 6. vi Contents BONAFIDE CERTIFICATE..................................................................................................ii DECLARATION.................................................................................................................... iii ACKNOWLEDGMENT ........................................................................................................iv ABSTRACT..............................................................................................................................v CHAPTER I .............................................................................................................................1 INTRODUCTION....................................................................................................................1 1.1 INTRODUCTION.....................................................................................................1 1.2 COMPANY BACKGROUND.......................................................................................7 1.3 STATEMENT OF THE PROBLEM: ........................................................................16 1.4 OBJECTIVES: .............................................................................................................16 1.5 SCOPE AND SIGNIFICANCE OF STUDY .............................................................16 1.6 LIMITATION OF THE STUDY................................................................................16 CHAPTER II..........................................................................................................................17 REVIEW OF LITERATURE...............................................................................................17 2.1 Overview of Review of Literature: .............................................................................17 2.2 Review of Literature:...................................................................................................17 CHAPTER III ........................................................................................................................20 RESEARCH METHODOLOGY .........................................................................................20 3.1 OVERVIEW OF RESEARCH METHODOLOGY .................................................20 3.2 RESEARCH DESIGN .................................................................................................20 3.3 POPULATION/ SAMPLE SIZE ................................................................................20 3.4 MODE OF DATA COLLECTION ............................................................................21 3.5 TOOLS AND TECHNIQUES:................................................................................21 CHAPTER IV.........................................................................................................................22 DATA ANALYSIS AND INTERPRETATION..................................................................22 4.1 INTRODUCTION TO DATA ANALYSIS ...............................................................22 4.2 DATA ANALYSIS AND INTERPRETATION ........................................................22 CHAPTER V..........................................................................................................................49 FINDING AND SUGGESTIONS.........................................................................................49 5.1 FINDINGS:...................................................................................................................49 5.2 SUGGESTIONS ...........................................................................................................51 5.3 CONCLUSION.............................................................................................................52 REFERENCES.......................................................................................................................53 ANNEXURE...........................................................................................................................54
  • 7. 1 CHAPTER I INTRODUCTION 1.1 INTRODUCTION The e-retailing(less frequently; e-Retailing, e-Tailing, etc.) is the concept of selling of retail goods using electronic media, in particular, the internet. The vocabulary electronic retailing, that used in internet discussions as early as 1995, the term seems an almost in evitable addition to e-mail, e-business and e-commerce, etc. e-retailing is synonymous with business- to- consumer (B2C) transaction model of e-commerce. Although e-retailing is an independent business model with certain specific constituents like; trust model, electronic transaction process, etc, but in reality it is a subset of e- commerce by nature. E-Retailing stores sell online promotion only for goods that can be sold easily online, e.g., Amazon did for Books & CDs, etc. The online retailing require lots of displays and specification of products to make the viewers have a personal feel of the product and its quality as he gets while physically present in a shop. E-Retailing refers to retailing over the internet. Thus an e-Retailing is a B2C (Business to customer) business model that executes a transaction between businessman and the final consumer. E-Retailers can be pure play businesses like amazon.com or businesses that have evolved from a legacy business such as tesco.com. The e-retailing is a subset of e- commerce. Thus, e-commerce is the master domain defining the e-retailing operation. Essentials of E-Retailing Electronic retailing or e-tailing, as it is generally being called now, is the direct sale of products, information and service through virtual stores on the web, usually designed around an electronic catalogue format and auction sites. There are thousands of storefronts or e- commerce sites on the Internet that are extensions of existing retailers or start-ups. Penetration of computers and proliferation of the Internet has given rise to many new forms of businesses, such as business process outsourcing, call centre based customer relationship management, medical transcription, remotely managed educational and medical services and of course, electronic retailing. There are certain essential ingredients for an electronic retailing business to be successful. One must consider these components well in advance before setting up an electronic storefront. These essential components are: • Attractive business-to-consumer (B2C) e-commerce portal • Right revenue model • Penetration of the Internet
  • 8. 2 E-Catalog It is a database of products with prices and available stock. Shopping Cart The customers select their goodies and fill shopping cart. Finally, as in a real store, at the time of checkout, the system calculates the price to be paid for the products. A payment gateway Customer makes payments through his/her credit card or e-cash. The payment mechanism must be fully secure. Support Services in E-Retailing The electronic retail business requires support services, as a prerequisite for successful operations. These services are required to support the business, online or offline, throughout the complete transaction-processing phases. The following are the essential support services: • Communication backbone • Payment mechanism • Order fulfillment • Logistics Advantages of E-Retailing E-Retailing, either as an extension of the existing retail/distribution business or an altogether new start-up, has many advantages. Traditional brick-store retailers are placing more emphasis on their electronic channels and evolving into multi-channel retailers to increase their reach and support their retail channels. The new start-ups in e-retailing can be launched from a small room with one PC attached with the outside world through the Internet. • The electronic channel gives the existing brick-store retailers an opportunity to reach new markets. • For the existing retailers, it is an extension to leverage their skills and grow revenues and profits without creating an altogether new business. • E-Retailing overcomes some limitations of the traditional formats, for instance the customers can shop from the comfort of their homes. • The e-commerce software that also traces the customers activities on the Net enables e- retailers to gain valuable insights into their customers shopping behaviour. • The e-retail channels transcend all barriers of time and space. The retailers server must be on 24*7. An order can come from any customer living any place at any time of the day. • E-Commerce channels are definitely efficient and retailers do not have to pay a heavy price for brick-n-mortar shops in costly shopping malls.
  • 9. 3 Shortcomings of e-retailing The online retailing {e-retailing} process is not an ultimate in the field of retailing methods; it also suffers various drawbacks that are the qualifications of traditional marketing. Some of the drawbacks need mention. • It has no theatrical ambience which can be the customer. • It lacks an emotional shopping experience that the customer can get in a personal shopping store. • It being container of intangible merchandise (i.e., virtual display of merchandise) does not provide sensory support to the customer, these the customer cannot hold, small, feel, or try the product. • On line customers are reluctant to part with their credit card details on net, fearing they may be misused. It arises security issues. The customers are not yet convinced about the foolproof status of this method, especially in Indian environment. • It provides, to a large extent, impersonal services which the Indian customers are not exposed to; they are rather used to the tangible personalized services which they miss in online retailing services. • It is lacking in family shopping experience which the Indian customers enjoy at the weekends, and particularly during festive seasons and marriage marketing. The advantages of e Retailing outweighs its draws, thus it is showing a positive growth rate across the boundary. Success factors for e-retailing The success of e-retailing depends on multiple factors that are required to be taken into consideration as prima-facie, missing even a single small consideration is quite liable to create a greater negative impact on entire business, since the customers and business both are far from each-other. The customer is aloof from reality of the business regarding with whom he is going to enter into a business relation; whether the relation will go for a short-term or for over a long-term, no matter. The e-Retailing business pattern is sophisticated as well as quite delicate; rather it may be defined more correctly as fragile. Thus, every consideration requires equal importance in its own status. Following are some of the factors to be taken care of, however it is neither exhaustive nor the ultimate, since it may change according to the nature of business too. At the same time the business ambience, magnitude and type of competition, changing need of consumer and many more external factors may influence it to a larger extent.
  • 10. 4 Thus, the early recognition of necessary current requirements and its implementation along with time is always a wise proposition. The important factors are: • Strong Branding • Unique Merchandising • Value Addition • Competitive Pricing • Better CRM • Better Distribution Efficiency • Soothing Website Design • Transparency in Services. As e-retailer is alone in the e-Retailing market rather he is also surrounded with a number of competitors, thus to ensure sale he has to think competitive pricing so that he can attract his customer. The competitive pricing finds scope from potential decrease in charges and expenditures that he had to bear while in brick-and-mortar mode of marketing. It is a matter of careful exercise to enclose a real competitive price to its products or services. The first abroad of the customer is website. The aesthetic and easy handling facilities are two important terms in this relation. The aesthetic provides initial attraction along with keeping the visitor long held with the site. The maneuvering easiness keeps the visitor surfing it for long. The aesthetics of the website must provide soothing look and feel and clarity of objects or scripts to the visitor along with sufficient ergonomic considerations, so that the visitor does not feel tired at the earliest. The careful placement of buttons and links provides ease in handling it. Finally, the transparency of services creates faith on the visitor of the site as well as on the customer of the business. Transparency of services is identified with the truth. Challenges of E-Retailing Unproven Business Models In the formative years of dot-com era, most of the businesses on the Net were experiments in new areas and did not provide enduring sources of profit. This was the primary reason behind closing down of 90 per cent of the purely e-commerce companies in the beginning of this
  • 11. 5 century. Today, dot-com businesses have matured a little. Still some of the businesses are at experimental level and do not guarantee regular revenue. Requirement to Change Business Process The process of procurement, storage and logistics in e-businesses is different from that in traditional brick-store businesses. The e-retail organization has to carefully redesign and integrate various processes to suit the new e-business. Traditional sections of departments and management hierarchy may pose hindrances and bottlenecks in the process of order processing and shipments, for example, the traditional business may require the goods to be present at the warehouse and inspected before being shipped to the customer, but in electronic retailing, shipping of goods from one place to another to a customer would not be possible. The retailer may appoint a local supplier at the city where the customer resides and instruct the supplier to deliver the goods. This would require by passing certain business rules and a lot of faith on the local supplier. It would require business confidence that the supplier would follow the instructions and deliver the same product in good quantity and perfect quality. Merchandise planning and demand analysis is also difficult in e-retailing, as compared to traditional retail businesses. Channel Conflicts Companies selling through the Internet as well as through brick stores may find their interest conflicting at many places. In electronic storefront orders, the goods directly reach the end- consumer and so the distributors and sellers may feel the threat to their existence. Most of the time, it is seen that retailers tend to reduce price over the Net. The sale at the brick store may store may drop because the retailer may tend to sell more through the Internet as a result of reduction of prices. Legal Issues Proper laws have not yet evolved for Internet based transactions. Validity of e-mails, digital signatures and application of copyright laws is being checked by various government authorities. E-mail and digital signatures are now being recognized as valid for any legal purpose. Value Added Tax (VAT) is yet another area that creates problems. Taxes on goods and services are still an issue. Since the taxes are levied and shared by multiple government agencies at local, state or federal level, there are no clear rules to guide retailers on that. In e-retailing, the place of billing, the place of dispatch of goods and the place of delivery all differ. If these three places fall in different jurisdictions of governments, levy and submission of taxes would be a problem. Security and Privacy Security is one of the major challenges in the digital world. Despite a lot of security arrangements, such as passwords and firewalls, we come across the news of website hacking and data pilferages.
  • 12. 6 The Internet being on public domain is more susceptible to unauthorized peeping. People are wary of divulging information regarding their credit cards and personal details on the Net because they can be misused. Cyber criminals have exploited the Internet weaknesses and have broken into computer systems, retrieving passwords and banking information. Security of payment gateway is a major concern, which has to be taken care of by the retailer by putting up proper security layers.
  • 13. 7 1.2 COMPANY BACKGROUND Flipkart: Flipkart is one of India’s leading e-commerce marketplaces. It was founded in October 2007 and its headquarters are in Bengaluru. It was founded by Sachin Bansal and Binny Bansal. This online venture was initially started as an online bookstore and as the popularity of the company grew, it expanded and diversified its operations. It started selling other items such as music, movies, and mobile phones. As the revolution of e- commerce gained momentum in India, Flipkart grew at an accelerated pace and added several new product lines in its portfolio. As of now, the company offers 80 million+ products spread across more than 80 categories such as mobile phones & accessories, computers and accessories, laptops, books and e-books, home appliances, electronic goods, clothes and accessories, sports and fitness, baby care, games and toys, jewellery, footwear, and the list goes on. Flipkart has 100 million registered users and more than a million sellers on its electronic commerce platform. To ensure prompt delivery to its customers, the company has invested in setting up warehouses in 21 states. This online platform attracts ten million page hits every day and around eight million shipments are processed every month. Flipkart has also introduced its mobile application, which has become quite popular, with 50 million+ app users. Flipkart is a billion dollar company and its valuation in 2016 was INR 15,129 crore (US$2.3 billion). It is also fulfilling its social responsibility by providing huge scale employments (employs more than 33,000 people). Background History of Flipkart Flipkart was originally started as an online book store in October 2007. To start Flipkart, the founders Sachin Bansal and Binny Bansal left their jobs at Amazon and took a huge risk to start a venture of their own. When the founders thought of starting Flipkart as a company the market at that time was not so much vibrant and was not adapted to the e-Commerce sector that much. This means e-commerce in India was mostly non-existent at that time and there was no certainty about its future. Still, the Bansal’s decided to take this risk and now it has turned out to be a huge success. One of the major problems that Flipkart tackled during its initial years was online payments because at that time, people in India were averse to make online payments to a virtual store, due to fear of frauds and loss of money. To deal with this issue, Flipkart launched its ‘Cash on Delivery’ service, which helped to build confidence among online buyers. It also made significant efforts to improve the supply chain system, which helped the company to ensure timely delivery to its customers.
  • 14. 8 Achievements of Flipkart The company created a record by selling 1 lakh books in a single day in 2013. Flipkart crossed the 100 million mark in registered customers in 2016. Flipkart achieved the Young Turk of the Year Award at CNBC TV 18’s “India Business Leader Awards 2012”. Funding Flipkart has received funds worth more than $ 4.5 billion, with the biggest funding in July 2014 worth $ 1 billion and in April 2017 worth $ 1.4 billion. List of top investors in Flipkart includes Naspers, Steadview Capital, Tiger Global Management, DST Global, Accel Partners, Dragoneer Investment Group, Baillie Gifford, GIC, Greenoaks Capital, ICONIQ Capital, Microsoft, Morgan Stanley, Qatar Investment Authority, and Sofina. Acquisitions made by Flipkart There is cut-throat competition in the e-commerce market and the biggest Rival of Flipkart is Amazon. In the recent years, many mergers and acquisitions have been witnessed in the e- commerce market and Flipkart has also made many acquisitions to expand its business and boost its sales and earnings. The major acquisitions made by Flipkart include Myntra, eBay India, PhonePe, Jabong, Letsbuy(dot)com, WeRead, Mime360, chakpak(dot)com, Appiterate, FX Mart, and ngpay. It has recently acquired its former competitor Snapdeal. It has acquired Snapdeal at a cost of $ 950 million. Competition: The major competitor – Amazon After acquiring Snapdeal the major competitive left against Flipkart is Amazon India. Still, it is facing stiff competition from Amazon India because Amazon has really captured a larger share of the market. Exclusive products Motorola mobility, previously owned by google but then sold to Lenovo, in an exclusive tie up with Flipkart launched its budget smart phone moto gin India on 5 February 2014 more than20,000 units were sold within hours of launch on Flipkart after this Flipkart was looking for a long term tie up with Motorola mobility. They also launched their android smart phone, the motox, on 19 march 2014. Flipkart later sold the moto e, cheaper than moto g, from 13 may 2014. The sale of high-end smart phone Xiaomi mi3 produced by Xiaomi tech was launched in India on an exclusive tie-up with Flipkart. The first batch was sold out within 39 minutes on 22 July 2014,the second in 5 seconds on 29 July 2014.
  • 15. 9 The sale was preceded on pre-registration mode where more than 150,000 buyers booked for the 5 august 2014 sale. This got sold off in less than 2seconds. Following this Xiaomi tech sold 20,000 units in the next sale on 12 august 2014. On 2 September 2014 Flipkart held a flash sale of the Xiaomi Redmi 1s budget android smart phone which was launched in India in July 2014. 40, 000 units priced at Rs 5999 each were sold within seconds. A further 40,000 units were sold within 4.5 seconds on sept 9, 2014. The third Redmi 1s sale on sept 16, 2014 sold 40,000 units in 3.4 seconds; in the 4th round of sale of Redmi 1s, 60,000 units sold in 5.2 seconds on sept 23, 2014. On 30 September 2014 60,000 units sold in 13.9 seconds. Redmi note in India exclusively through Flipkart; 50,000 units sold in 6seconds on 2 December 2014. In July 2014 Flipkart launched its own set of tablet, mobile phones& tablet. The first among these series of tablet phones was Digi flip pro xt 712 tablet. In july2014 Flipkart launched its first networking router, under its own brand name named digiflipwr001 300 mbit/s wireless n routers. In September 2014 Flipkart launched its in-house home appliances and personal healthcare brand citron. The label includes a wide range of cooking utilities and grooming products. Failure in Music Industry In October and November 2011, Flipkart acquired the websites mime360.com and chakpak.com. Later, in February 2012, the company revealed its new flyte digital music store. Flute, a legal music download service in the vein of iTunes and Amazon.com, offered drm-free mp3 downloads. But it was shut down on 17 June 2013 as paid song downloads did not get popular in India due to the advent of free music streaming sites. Marketing strategy Flipkart has been mostly used marketed by word of mouth. Customer satisfaction has been their best market medium. Flipkart very wisely used SEO (Search Engine Optimization)& Google Ad-words as the marketing tools to have a far reach in the online world. All in all to create a great customer experience. Kids were used to create the adverts to send out the message -if a kid can do it, we can also do it. Brand Awareness Brand Awareness is key success factor in the market. Flipkart is the industry leading with 80% market share having a very high Brand Awareness and lowest price. Brand loyalty Excellent user experience on the e-commerce website in term of usability speed clarity will enhance the loyalty of existing customer and move a step ahead of brand awareness towards customer retention.
  • 16. 10 Amazon Amazon.com, founded by Jeff Bezos in 1994, is an American electronic commerce company with headquarters in Seattle, Washington. Jeff Bezos incorporated the company as “Cadabra” on July 5, 1994, and the site went online as Amazon.com in 1995. Bezos changed the name cadabra.com to amazon.com because it sounded too much like cadaver. Additionally, a name beginning with “A” was preferential due to the probability it would occur at the top of any list that was alphabetized. It is the largest Internet based company in the United States. Amazon.com started as an online bookstore, but soon diversified, selling DVDs, VHSs, CDs, video and MP3Downloads/Streaming, Software, Video Games, Electronics, Apparel, Furniture, Food, Toys, and Jewellery. The company also produces consumer electronics notably, Kindle, Fire Tablets, Fire TV and Phone and is a major provider of cloud computing services. Amazon has separate retail websites for United States, United Kingdom & Ireland, France, Canada, Germany, The Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India and Mexico, with sites for Sri Lanka and South East Asian countries coming soon. Amazon also offers international shipping to certain other countries for some of its products. In the year 2011, it had professed an intention to launch its websites in Poland, and Sweden. In early June 2013, Amazon.com had launched their Amazon India marketplace without any marketing campaigns. In July, 2013, Amazon had announced to invest $2 Billion (Rs 12,000 Crores) in India to expand business, after its largest Indian rival Flipkart too had announced to invest$1 Billion. Exclusive products The Amazon kindle is a series of readers designed and marketed byAmazon.com. Amazon kindle devices enable users to browse, buy, download and read ebooks, newspapers, magazine sand other digital media via wireless networking to the kindle store. The hardware platform, developed by Amazon subsidiary lab126, began as a single device and now comprises a range of devices, including e-readers with e ink electronic paper displays, and android- based tablets with colour lcd screens. All kindle devices integrate with the kindle store to acquire content and as of February 2016, the store has over 4.3 million e- books available in the us. The one plus one launched as an Amazon exclusive in India last year, but now the device is available for purchase on rival e- commerce store Flipkart. Moto g (gen 4) and moto g plus (gen 4) will be available exclusively on Amazon. Achievements in E-Commerce On the mobile app side, Amazon had the fastest growing app download rate in 2015. In October alone, downloads increased 200 per cent. Amazon web traffic was the highest in October as
  • 17. 11 per com score data, at 30 million visitors. Amazon active customers have gone up 230 per cent year on year. The awards were conferred at e-tailing India's flagship conference and exhibition 2014, an event that brought together major stakeholders in the retail and e-commerce business in the country. The "path-breaking debut of the year" award went to Amazon.in Failure Amazon starts using India post and screws up its delivery system in India. At the time when the competition among online shopping portals in India is at its highest level possible and each player is pooling in millions from funding’s and trying to beat each other with never-before discounts and amazing services, Amazon has taken the worst step ever possible. Amazon India has chosen India post as its primary delivery partner and all “Amazon fulfilled” orders are now being shipped through India post. Anyone who lives in India or has some experience with the postal system in India needs no introduction about India post. When did Amazon start becoming popular and when did Amazon go public? At the time of its founding, many of Bezos' peers and other critics voiced their skepticism about his proposed business model. Financial journalists were some of the most vitriolic and often disparaged the company by referring to it as Amazon.bomb. Many of them claimed that Amazon.com would ultimately lose out to more established bookstores. Especially those that were already following suit and starting their own e- commerce sites. The very fact that Amazon.com didn't become profitable until the final quarter of 2001 didn't help things. But Bezos stayed firm and dismissed his naysayers as people who simply didn't understand the potential for the business. Bezos argued that in order to succeed as an online retailer, Amazon would need to "Get Big Fast." And grow it did. By December of 1996, the company's customer base had grown to an impressive 180,000. By October of the following year, this figure had leaped to around 1,000,000 registered accounts. Revenues had reached around $148 million in 1997, a significant jump from around $16 million in 1996. Up until this point, Amazon had remained a private company. But Bezos soon realized that he would need more than just private investment to sustain the company's growth. And so, in 1997, Amazon.com went public and managed to raise an eye-watering $54 million on the NASDAQ exchange. In addition to the cash, the company was able to use its stock sales to fund its aggressive growth and acquisition strategy. By 1998, Amazon's revenues had reached an impressive $600 million.
  • 18. 12 Amazon's meteoric rise in such a short time frame catapulted Bezos into the public eye. He was also chosen to be Time magazine's 1999 Person of the Year. At around the same time, Amazon launched its now highly lucrative Affiliate program. By joining the program, other companies advertised Amazon's merchandise for sale on their own platforms. Amazon would then fulfill the order and pay a commission — win, win. The program proved to be a savvy business decision. It grew from one Associate in 1996 to well over 350,000 by the close of 1999. How does Amazon use technology to increase efficiency? Apart from its near-universal appeal as a kind of one-stop-shop, Amazon has also taken advantage of the latest technological innovations to increase its efficiency and service to its customers. From the use of AI to handle and process orders or recruit to experimenting with drones and robots for order fulfillment and delivery, Amazon is certainly not afraid of testing out the latest innovation in tech. This approach, however, been both good and bad. For example, a machine-learning recruitment tool the company adopted, though apparently was not used in the final decision process, was later shown to have an apparent bias against certain groups of people for software developers and other technical positions. Once the issue was discovered, Amazon duly canceled the product. Amazon has also adopted automated processes for firing, as well as hiring. Such systems have been criticized for making decisions without being able to take into consideration all factors — like issues in someone's personal life, etc. Software solutions, like Amazon's "Anytime Feedback Tool", for example, enable staff to either praise or criticize their coworkers. This same software also tracks an employee's performance against set Key Performance Indicators (KPIs) whilst handling orders from customers. While mistakes do happen and are expected, Amazon has been criticized for the pressure it appears to be putting some of its warehouse staff under — even claims that staff can be automatically fired should their performance be deemed unacceptable. However, it is important to note that Amazon wholeheartedly denies such practice. "It is absolutely not true that employees are terminated through an automatic system. We would never dismiss an employee without first ensuring that they had received our fullest support, including dedicated coaching to help them improve and additional training," an Amazon representative told MIT Technology Review. Amazon has also been adopting more and more automated solutions to increase efficiency in its fulfillment centers, like the use of robots to find and retrieve items. However, for the time being, at least, human workers are still a key part of Amazon's delivery service — especially when it comes to packing items and dealing with customer service.
  • 19. 13 What made Amazon so popular? The main appeal of Amazon in its early days was one of pure convenience. No longer did a potential customer need to visit a physical bookstore to get the book they were looking for. The ability to search, select and purchase a book from the comfort of your own home was an amazing innovation at the time. Not only that, but Amazon would deliver your purchase to your front door within days. The very fact that they began to offer more and more different products only broadened its appeal to more and more customers. But it wasn't really about the goods they were selling. Amazon's success owed, like many other successful companies, to the service that they offered. This gained them significant customer loyalty, and as a result, big profits in the long run. Another innovation Amazon made for its customers was its recommended product function. By offering other products to upsell, based on the customer's previous purchases, Amazon was able to increase its revenue even more. The addition of customer reviews of products also helped to foster a kind of "customer community" that made the site, and its wares, more appealing to potential new customers. In recent years, Amazon has reached new heights, like becoming the second-ever $1 trillion market cap company in history (Apple got there first, believe it or not). After announcing, and then canceling plans to build its second HQ in New York following political pressure, Amazon would see record growth during 2020. With many people stuck at home during the pandemic, Amazon, and other online retailers enjoyed something of a field day. The most recent major news in Amazon's more than 25 years in business, was the announcement that Bezos has decided to step down as the company's CEO as of fall 2021. How the company will perform with Bezos not behind the wheel is yet to be seen, but if past performance is anything to go by, it is bound to be a highly successful one. That is, of course, unless calls to break up Amazon gain serious traction in the public eye. As they say, time will tell.
  • 20. 14 Shop Clues Shop Clues was founded in July 2011 and the mastermind powering the venture was Sandeep Aggarwal, one of the co-founders of the company. The other co-founders of Shop Clues are Sanjay Sethi, CEO of Shop Clues and Radhika Aggarwal, Chief Business Officer (CBO). Shop Clues is headquartered in Gurugram and is an Indian subsidiary of US-based Clues Network Inc. Shop Clues was founded with the goal of providing the best bargains to people of India. It is common knowledge that buyers in the country will visit multiple stores to get the best deals. This is the primary need that Shop Clues fulfilled by launching the country’s first and largest fully managed marketplace. Shop Clues currently offers a wide range of products and services, spread across various categories such as mobile & tablets, computers, laptops, appliances, home & kitchen, fashion, footwear, travel & luggage, automotive, jewelry & watches, toys, baby & kids, gourmet & daily needs, sports and health, and beauty & perfumes. Shop Clues is popular for delivering the cheapest deals in the market via its merchants that are now more than 5 lakh in number. Shop Clues gets 100 million visits every month, has more than 8.5 million products and delivers to around 30,000 destinations in India. Shop Clues is also known to source merchandise from various leading markets in the country, which has benefited both sellers and buyers. Shop Clues started with just 5 employees in 2011, but now it is 1,000+ and growing. History: Shop Clues started operations in 2011 via Facebook with a team size of 5 members. The plan was to provide the best deals to buyers, knowing quite well that people in India are always looking for the best bargains. The company launched its app and the country’s first Wholesale Marketplace (TVC) in 2014. In 2016, Shop Clues came to be listed amongst the top e-commerce companies in India, as it crossed 100 million visits per month. In the same year, Shop Clues increased its merchant base to more than half million. Funding: Shop Clues has received funding worth $139 million (approx.) from various sources. Top investors include GIC, Helion Venture Partners, InnoVen Capital, LionBird, Nexus Venture Partners, and Tiger Global Management. The company is now a ‘Unicorn’, which is the title given to a company whose valuation crosses $1 billion. Shop Clues is also planning to launch its Initial Public Offering (IPO) soon. Acquisitions: Shop Clues acquired Momoe in 2016 for around $12 million. Momoe is a Bengaluru-based startup focused on mobile payments system.
  • 21. 15 Competition: Shop Clues competes with other e-commerce companies in India such as Amazon India, Flip Kart, Snapdeal, etc. About the Founders: Shop Clues was founded by Sandeep Aggarwal, Sanjay Sethi and Radhika Aggarwal. Sandeep Aggarwal had previously worked with various other companies in Silicon Valley. He had completed his MBA from Washington University in St. Louis. Sanjay Sethi is the CEO of Shop Clues and an alumnus of Indian Institute of Technology (BHU) Varanasi. Radhika Aggarwal is the Chief Business Officer (CBO) and she completed her MBA from Washington University in St. Louis.
  • 22. 16 1.3 STATEMENT OF THE PROBLEM: India e-commerce evaluated like a giant with huge opportunity and success rate. There are so many big and small players in market. Are they really going to sustain in market for a long time and is there success rate for them. What are customers expecting from them and are they ready to fulfil their requirements. The study is to understand both parties’ requirements and procedures.. 1.4 OBJECTIVES: • To understand and estimate the consumer perception and factors affecting their behaviour for choosing e-commerce sites. • To understand tactics and methods that are used by e-commerce players to grab the customers in India. • To know how consumers are evaluating e-commerce sites for their purchases. • To understand the work flow of Amazon and Flipkart which are leading in India. • To study complexities and barriers those are there in between e-commerce sites and customers. • To find out new opportunities and to succeed in those procedures. 1.5 SCOPE AND SIGNIFICANCE OF STUDY Scope of the study can result in a way that banks can be benefited by knowing the information about customer preference and expectation with reference to their services and dealing of the personnel. So that they can improve their services as per the customer expectations. 1.6 LIMITATION OF THE STUDY • Time Constraints. • Due to pandemic respondents were not freely available to approach. • Sometimes the customer was not feeling suitable to share their details and feedback about their banks. • There was so much confidential data of companies that are not exposed. • Survey was restricted to particular age group because respondents willing to fill are college students. • Analysis was done based upon personal opinion of respondents individually, not from any focus groups or experts.
  • 23. 17 CHAPTER II REVIEW OF LITERATURE 2.1 Overview of Review of Literature: This makes a brief review of the literature relevant to the study. (There is only very limited studied which are directly relevant to the study concerned). Research era has made an attempt a review of the literature available which consists of articles, journals. 2.2 Review of Literature: Sharma and mittal (2009) in their study “prospects of e-commerce in India”, mentions that India is showing tremendous growth in the e-commerce. Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited potential in India. The real estate costs are touching the sky. Today e-commerce has become an integral part of our daily life. There are websites providing any number of goods and services. The e-commerce portals provide goods and services in a variety of categories. To name a few: apparel and accessories for men and women, health and beauty products, books and magazines, computers and peripherals, vehicles, software, consumer electronics, household appliances, jewelry, audio, video, entertainment, goods, gift articles, real estate and services. Ashish gupta, senior managing director of helion venture partners and one of the first backers of Flipkart as an angel investor: “Flipkart has been absorbing companies that have some potential (letsbuy, myntra). In that process, some of the bets will go wrong, for sure. But that is par for the course. The company (Flipkart) is consciously taking bets that allow it to either grow or eliminate competition that reduces marketing spend and improves economics.” Miyazaki and fernandez (2001) substantiated that the prior experience was found to affect the intention and behaviour significantly and in a variety of ways. The results of this study imply that the technology acceptance model should be applied to electronic commerce research with caution. In order to develop a successful and profitable web shop, understanding customers' needs is essential. It has to be ensured that products are as cheap in a web shop as purchased from traditional channels. According to Sharma and Mittal (2009) in their study “prospects of e- commerce in India”, mentions that India is showing tremendous growth in the e-commerce. Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited potential in India. The real estate costs are touching the sky. Today e-commerce has become an integral part of our daily life. There are websites providing any number of goods and services. The e-commerce portals provide goods and services in a variety of categories. To name a few: apparel and accessories for men and women, health and beauty products, books and magazines, 6 computers and peripherals, vehicles, software, consumer electronics, household appliances, jewelry, audio, video, entertainment, goods, gift articles, real estate and services. Samadi and ali (2010) compared the perceived risk level between internet and store shopping, and revisit the relationships among past positive experience, perceived risk level, and future purchase intention within the internet shopping environment. Abhijit mitra. (2013), “e-commerce in India-a review”, international journal of marketing, financial services & management research. Concluded that the e-commerce has broken the
  • 24. 18 geographical limitations and it is a revolution-commerce will improve tremendously in next five years in India. D.k.gangeshwar. (2013),” e-commerce or internet marketing: a business review from Indian context”, international journal of u- and e- service, science and technology. Concluded that the e-commerce has a very bright future in India although security, privacy and dependency on technology are some of the drawbacks of e-commerce but still there is a bright future to e- commerce. Martin dodge. (1999),”finding the source of Amazon.com: examining the hype of the earth’s biggest book store”, center for advanced spatial analysis. Concluded that Amazon.com has been one of the most promising e-commerce companies and has grown rapidly by providing quality service. Vijay Govindarajan is one of the world’s leading experts on strategy and innovation. Govindarajan, coxe distinguished professor at Dartmouth college’s tuck school of business and marvin bower fellow at Harvard business school, is also a best-selling author. The biggest opportunity in India is e-commerce. Why? Three important factors will drive this: 1) mobile phone penetration; 2) a young demographic that is used to ordering things using the mobile platform; 3) growth of consumerism with more Indians with higher disposable income. We will see many new innovative business models in the e-commerce space in the next five years. No doubt we will see new innovative high-growth companies—Indian equivalents of Alibaba. Dr. Sudha S (2015), Innovation brings with itself a new set of challenges. The E-Retailing form of market was fairly something unheard of to the Indian consumer in 2007. Flipkart which has carved a niche for itself in terms of market share, goodwill and popularity in the online market to the extent that retailers are coming under threat because of its discounts and smooth operations. The ascent of Flipkart to capture the online market in India in just four years, the strategies implemented by it to create online business ,its ability to stand out among numerous E-Retail sites. This case study aims to understand the marketing strategy, brand awareness, SWOT analysis, functioning of Flipkart. It aims to predict the future roadmap and also aims to find significant threats to Flipkart in the near future. Pooja Gupta (2015), The study tries to recognize that, how consumer measure channels for their purchasing. Specifically, it progresses a conceptual model that addresses consumer value perception for using the internet shopping versus the traditional shopping. Earlier study showed that perceptions of price, product quality, service quality and threat strongly impact perceived value and purchase intents in the offline and online network. Observations of online and offline buyers can be evaluated to see how value is constructed in both channels. It is hitherto to recognize what factors influence online and offline shopping choice progression. The objective of this study is to provide an impression of online shopping decision process by comparing the offline and online decision making and identifying the factors that motivate customers to decide whether to do online shopping or go for the offline shopping. Consumer’s shop when and where they want, where they are comfortable with the products and the choice of shopping. The study finds that female are more into online shopping than male.
  • 25. 19 K Francis Sudhakar (2016), Internet became more powerful and basic tool for every person’s need and the way people work. By integrating various online information management tools using Internet, various innovative companies have set up systems for taking customer orders, facilitate making of payments, customer service, collection of marketing data, and online feedback respectively. These activities have collectively known as e-commerce or Internet commerce. Online shopping made so easy for everyone with their product variations and simple way to buy things. An attempt has been made to critically examine various corporate and business level strategies of two big e-tailers and those are Flipkart and Amazon. Comparison have been done considering e-commerce challenges, their business model, funding, revenue generation, growth, survival strategies, Shoppers’ online shopping experience, value added differentiation, and product offerings
  • 26. 20 CHAPTER III RESEARCH METHODOLOGY 3.1 OVERVIEW OF RESEARCH METHODOLOGY Research is an art of scientific investigation. In other word research is a scientific and systematic search for pertinent information on a specific topic. The logic behind taking research methodology into consideration is that one can have knowledge about the method and procedure adopted for achievement of objectives of the project. With the adoption of this others can evaluate the results also. Its main aim is to keep the researchers on the right track. It describes the data collection method, the sampling plan, the tools of investigation, planning and testing of questionnaire and the limitations of the study. The study requires the data to be collected from two different sources i.e. the primary source and the secondary source. TYPE OF RESEARCH DESCRIPTIVE RESEARCH: Descriptive research includes surveys and fact – finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening 3.2 RESEARCH DESIGN The design of a research is a plan or a model that helps researcher to conduct a formal investigation and survey. It is an application of methods and procedures for acquiring the information needs for getting a desire outcome. It decides the sources of data and methods for gathering data. A good design insures that the information obtained is relevant to the research question and that it was collected by objectives. Since, research design is simply the frame work or plan for a study. It is a blue print that of a house devised by an architect. My approach to research is descriptive and quite specific. Out of these all research methods the research method, which was most suitable to this research was descriptive research because it provides us all the opportunities to cover all the aspect that is required to conduct the research and get an appropriate outcome. 3.3 POPULATION/ SAMPLE SIZE It is true that it is very difficult to do research with whole universe. So, for this purpose sample size has to be determined well in advanced and selection of the sample also has to be scientific so that it represents the whole universe.
  • 27. 21 So far as this research is concerned, the sample size is 60. 3.4 MODE OF DATA COLLECTION As learning is a human activity and is as natural as breathing. Despite the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. There are 2 sources of data i.e. A) Primary Data: The data, which are collected for the first time, directly from the respondents to the base of knowledge & belief of the research, are called primary data. The normal procedure is to interview some people individually or in a group to get a sense of how people feel about the topic. So far as this research is concerned, primary data is the main source of information provided by the respondents by the way of questionnaire send to them. B) Secondary Data: When the data is collected and compiled in a published nature it is called Secondary data. The data can be taken from internet, many brochures, previous project reports and magazines have been referred too. For this research, researcher have selected primary data to complete the research with. Researcher have asked consumers to fill up the questionnaire so that researcher could gather the data for the research. 3.5 TOOLS AND TECHNIQUES: The data was collected through questionnaire method . Again, the research is descriptive type. The analysis is done through the tabular and graphical representation. ANALYSIS OF DATA: • Nature of Research - Descriptive • Research Approach - Survey • Sample Size – 60 • Sampling Criteria - Random Sampling • Research instrument – Questionnaires
  • 28. 22 CHAPTER IV DATA ANALYSIS AND INTERPRETATION 4.1 INTRODUCTION TO DATA ANALYSIS Data Analysis is the process of systematically applying statistical and/or logical techniques to describe and illustrate, condense and recap, and evaluate data. While data analysis in qualitative research can include statistical procedures, many times analysis becomes an ongoing iterative process where data is continuously collected and analysed almost simultaneously. 4.2 DATA ANALYSIS AND INTERPRETATION Age • 15 to 25 years • 25 to 35 years • Above 35 years INTERPRETATION: - It clearly shown that 66.7% between the age of 15 to 25 years are using ecommerce sites more, age group of 35 years and above also using with 18.3% and only 15% of respondents with age group of 25 to 35 years are using less ecommerce sites.
  • 29. 23 Gender Male Female INTERPRETATION: - It was found that male respondent are using more ecommerce site with ration of 60% and 40% used by female respondent
  • 30. 24 Occupation: a. Businessman b. Job’ c. Student d. Unemployed e. Other INTERPRETATION:- In this response we can see that most of the response we get from the student with 56.7% after that 13.3% response are business which are using e commerce, and people who having job also filled and we get 15% responses
  • 31. 25 Income (Monthly): a. Less than 25000 b. 25000 – 50000 c. 50000 – 100000 d. 100000 – 200000 e. More than 200000 INTERPRETATION:- It was found that 65% respondent are for below the income level of 25000, 15% respondent are of above 200000 income bracket,8.3% respondents lies in the category of 25000 to 50000, 6.7% respondents lies in the income category of 50000 to 100000 and 5% respondents lies in the income category of 100000 to 200000.
  • 32. 26 For how long you are using E-commerce sites? (Duration in Time) 0 - 5 years a. Flipkart b. Amazon c. Shop clues INTERPRETATION:- It was found that both Amazon and Flipkart having equal percentage 38.5% and using ecommerce site for (0 to 5 years) and only 23.1% respondent are using Shop Clues for (0 to 5 years).
  • 33. 27 5 – 10 years: INTERPRETATION:- It was found that Amazon is used more in 5 to 10 years of time with 91.2% and a very less percentage hold by flipkart with 8.8% between 5 to 10 years
  • 34. 28 10 – 15 years: INTERPRETATION:- It is found that 63.6% respondent using amazon from 10 to 15 years and 27.3% respondent using flipkart from 10 to 15 years and only 9.1% using Shop Clues for 10 to 15 years of time
  • 35. 29 15 years and above INTERPRETATION:- It was found that amazon hold 68.8% of responses for using their site for more than 15 years and only 31.3% respondent using flipkart for 15 and above
  • 36. 30 Which online websites you prefer most to buy online products? a. Amazon b. Flipkart c. Shop Clues d. Other INTERPRETATION:- From the above response it clearly shown that 80% of response prefer amazon for buying online products and 13.3% prefer to buy form flipkart and only 6.7% prefer for Myntra
  • 37. 31 How often you shop online? a. Once in a month’ b. Once in a two month c. More frequently d. Very rare INTERPRETATION:- From the above responses we can see that 41.7%responednt shop online once in a month, 26.7% shop online more frequently , 18.3% shop very rare only in need they but and 13.3% respondent buy once in a two month to shop online
  • 38. 32 Which payment method you use most buy product? a. Debit card b. Credit card c. Cash on delivery d. Net banking e. UPI INTERPRETATION:- It was found that cash on delivery payment method used y respondent is 51.7% after that 10% of them prefer to buy the way of debit card, 6.7% goes to credit card option to buy product, we also see that 5% prefer to give payment by the way of UPI method and 6.7% prefer form both debit card and COD or 5% respondent payment through COD and net banking
  • 39. 33 What motivates you choose this e-commerce site. a. Online review b. Referred by friends c. Advertisement d. Magazines INTERPRETATION: - From the above responses we can see that 53.3% respondent get motivates from online review to choose Ecommerce site and 28.3% get motivated from advertisement with site f=give better advertisement, 16.7% get motivates from friend referring to choose site to but product and only 1.7% respondent get motivates from magazines
  • 40. 34 Which websites offers you most satisfactory pricing a. Amazon b. Flipkart c. Shopclues d. Other INTERPRETATION: - From the above response Amazon offer most satisfactory pricing with ratio of 71.7%, flipkart hold 15% satisfactory pricing and 13.3% respondent not compared which sites offer them best satisfactory pricing
  • 41. 35 Which websites offers you more discount on product? a. Amazon b. Flipkart c. Shopclues d. Other INTERPRETATION:- It is found that 70% of respondent feels amazon offers more discount on products, 18.3% respondent see flipkart offer more discount on products and 11.7% given to Myntra for offering better discounts ion products
  • 42. 36 Which E-commerce site gives you more bank discount and cash bank? a. Amazon b. Flipkart c. Shopclues d. Other INTERPRETATION:- It was found that amazon gives mot=re bank discount and cash back with 83.3% and 10% & 6.7% given to flipkart and Myntra for offering bank discount and cash bank
  • 43. 37 Which E-commerce site you suggest to others. a. Amazon b. Flipkart c. Shopclues d. Other INTERPRETATION:- From the above response’s 81.7% respondent suggest amazon to others and 11.7% respond feel to suggest flipkart and only 6.7% suggests Myntra to others.
  • 44. 38 In festive seasons which site you choose most for shopping? a. Amazon b. Flipkart c. Shopclues d. Other INTERPRETATION: - It is found that in festive seasons site used most for shopping is Amazon with 66.7%, and other gives equal ratio to Flipkart & Nykaa with 11.7% & 11.7% and only 10% given to Myntra
  • 45. 39 Rate the product received form E-Retailers from 0 to 5? a. 0 b. 1 c. 2 d. 3 e. 4 f. 5 INTERPRETATION – From the above respondents, we can say that 50% respondents gave 4 rating out of 5 followed by 25% respondents gave 3 out of 5 and 23.3% respondents gave 5 out of 5 ratings and only 1.7% respondents gave 2 out of 5 ratings. From the above graph we can say that the respondents are quite satisfied with the product offered by the e commerce sites and none of the respondents gave the least rating by which we can say that the e commerce market is good.
  • 46. 40 From which of the company you have faced problem more a. Amazon b. Flipkart c. Shopclues INTERPRETATION: - It found that consumer faced problem with flipkart more with 40%, respondent also faced problem with amazon with 33.3% and less problem faced by ShopClues that is 26.7%.
  • 47. 41 Which kind of the problem you have faced from your E-Retailers. Delay in deliveries a. Amazon’ b. Flipkart c. Shopclues INTERPRETATION: - From the above responses we can see that consumer face delay in their deliveries with flipkart more with 45% after that ShopClues also delay in deliveries with 41.7% and people faces less chance of delay in their deliveries with amazon i.e. 13.3%
  • 48. 42 Product Damage: a. Amazon b. Flipkart c. Shopclues INTERPRETATION: - From the above responses we can see that consumer face product damages while receiving the product with ShopClues more with 43.3% after that consumer also faces the product damages with flipkart with 38.3% and less chance of damage product is with amazon with 18.3%
  • 49. 43 Cheap Quality of product: a. Amazon b. Flipkart c. Shopclues INTERPRETATION: - From the above responses we can see that consumer faces cheap quality of product with ShopClues with 41.7%, after that they also faced same cheap quality in flipkart with 31.7% and less in amazon with 26.7%.
  • 50. 44 Non- delivered: a. Amazon b. Flipkart c. Shopclues INTERPRETATION: - From the above responses we can see that consumer face Non- delivered of their product with ShopClues more with percentage of 55% and respondent also faces problem with non-delivered product with flipkart with 35% and only 10% respondents faces issues with amazon for Non-delivered product
  • 51. 45 Others: a. Amazon b. Flipkart c. Shopclues INTERPRETATION: - From the above responses we can see that consumer face others problem also from their E-retailers like customer care behaviors, delivery boy behaviors, packaging issues and many more, so respondent face different problem more with ShopClues with 55%, few respondent faces with flipkart with 28.3% and less respondent face problem with amazon with 16.7%.
  • 52. 46 Kindly evaluate the satisfactory level Flipkart a. Highly satisfactory b. Satisfactory c. Neutral d. Dissatisfactory e. Highly dissatisfactory INTERPRETATION: - It is found that form flipkart 50% of respondent are satisfied with their services and other things , few respondent are neutral with 38.3% as they confused or with their services or else , 8.3% respondent are highly satisfied with flipkart and 1.7% & 1.7% given to respondent who are highly dissatisfies or dissatisfied.
  • 53. 47 Amazon a. Highly satisfactory b. Satisfactory c. Neutral d. Dissatisfactory e. Highly dissatisfactory INTERPRETATION: - From the above responses we can see that 51.7% of respondent are highly satisfied with amazon services and their products, after that 38.3% respondent are only satisfied with them and few of them with 10% are neutral with amazon service and their product
  • 54. 48 Shopclues a. Highly satisfactory b. Satisfactory c. Neutral d. Dissatisfactory e. Highly dissatisfactory INTERPRETATION: - From the above responses we can see that 58.3% respondent are neutral, 16.7% respondent are satisfied with ShopClues with their services and their product 15% are dissatisfied with them as they sometimes get disappointment with company services 8.3% are highly dissatisfied with them as they faces issues with company work and behavior with consumers
  • 55. 49 CHAPTER V FINDING AND SUGGESTIONS 5.1 FINDINGS: • It clearly shown that 66.7% between the age of 15 to 25 years are using ecommerce sites more, age group of 35 years and above also using with 18.3% and only 15% of respondents with age group of 25 to 35 years are using less ecommerce sites. • It was found that male respondent are using more ecommerce site with ration of 60% and 40% used by female respondent • In this response we can see that most of the response we get from the student with 56.7% after that 13.3% response are business which are using e commerce, and people who having job also filled and we get 15% responses • It was found that 65% respondent are for below the income level of 25000, 15% respondent are of above 200000 income bracket,8.3% respondents lies in the category of 25000 to 50000, 6.7% respondents lies in the income category of 50000 to 100000 and 5% respondents lies in the income category of 100000 to 200000 • It was found that both Amazon and Flipkart having equal percentage 38.5% and using ecommerce site for (0 to 5 years) and only 23.1% respondent are using Shop Clues for (0 to 5 years). • It is found that 63.6% respondent using amazon from 10 to 15 years and 27.3% respondent using flipkart from 10 to 15 years and only 9.1% using Shop Clues for 10 to 15 years of time • It was found that amazon hold 68.8% of responses for using their site for more than 15 years and only 31.3% respondent using flipkart for 15 and above • From the above response it clearly shown that 80% of response prefer amazon for buying online products and 13.3% prefer to buy form flipkart and only 6.7% prefer for Myntra • From the above responses we can see that 41.7%responednt shop online once in a month, 26.7% shop online more frequently , 18.3% shop very rare only in need they but and 13.3% respondent buy once in a two month to shop online • It was found that cash on delivery payment method used y respondent is 51.7% after that 10% of them prefer to buy the way of debit card, 6.7% goes to credit card option to buy product, we also see that 5% prefer to give payment by the way of UPI method and 6.7% prefer form both debit card and COD or 5% respondent payment through COD and net banking • From the above responses we can see that 53.3% respondent get motivates from online review to choose Ecommerce site and 28.3% get motivated from advertisement with site give better
  • 56. 50 advertisement, 16.7% get motivates from friend referring to choose site to but product and only 1.7% respondent get motivates from magazines • From the above response Amazon offer most satisfactory pricing with ratio of 71.7%, flipkart hold 15% satisfactory pricing and 13.3% respondent not compared which sites offer them best satisfactory pricing • It is found that 70% of respondent feels amazon offers more discount on products, 18.3% respondent see flipkart offer more discount on products and 11.7% given to Myntra for offering better discounts ion products • From the above response’s 81.7% respondent suggest amazon to others and 11.7% respond feel to suggest flipkart and only 6.7% suggests Myntra to others. • It is found that in festive seasons site used most for shopping is Amazon with 66.7%, and other gives equal ratio to Flipkart & Nykaa with 11.7% & 11.7% and only 10% given to Myntra • From the above respondents, we can say that 50% respondents gave 4 rating out of 5 followed by 25% respondents gave 3 out of 5 and 23.3% respondents gave 5 out of 5 ratings and only 1.7% respondents gave 2 out of 5 ratings. • From the above graph we can say that the respondents are quite satisfied with the product offered by the e commerce sites and none of the respondents gave the least rating by which we can say that the e commerce market is good. • It found that consumer faced problem with flipkart more with 40%, respondent also faced problem with amazon with 33.3% and less problem faced by ShopClues that is 26.7%. • From the above responses we can see that consumer face delay in their deliveries with flipkart more with 45% after that ShopClues also delay in deliveries with 41.7% and people faces less chance of delay in their deliveries with amazon i.e. 13.3% • From the above responses we can see that consumer face product damages while receiving the product with ShopClues more with 43.3% after that consumer also faces the product damages with flipkart with 38.3% and less chance of damage product is with amazon with 18.3% • From the above responses we can see that consumer faces cheap quality of product with ShopClues with 41.7%, after that they also faced same cheap quality in flipkart with 31.7% and less in amazon with 26.7%. • From the above responses we can see that consumer face Non-delivered of their product with ShopClues more with percentage of 55% and respondent also faces problem with non-delivered product with flipkart with 35% and only 10% respondents faces issues with amazon for Non- delivered product • From the above responses we can see that consumer face others problem also from their E-retailers like customer care behaviors, delivery boy behaviors, packaging issues and many more, so respondent face different problem more with ShopClues with 55%, few respondent faces with flipkart with 28.3% and less respondent face problem with amazon with 16.7%.
  • 57. 51 5.2 SUGGESTIONS ShopClues is performing ok but not good enough. There are so many cases where people felt that packing might have been better than this. Either it may be big or small / expensive or not product has to be treated with care. As it same with flipkart as their packaging in not good enough and not maintain proper deliveries as we see in questioner many respondents felt that problem Some of the products mostly apparels are turning out with original cover of supplier, which shows negligence of them. In this issue Amazon made a mark among us, because whatever the product is their packing will obviously safe and secure. All ecommerce sites need to arrange better service to serve their consumer as consumer the king of the market and they need to gain trust of them and try to introduce different thing as it’s a competitive market. Expanding what you sell is another great way to grow your retail business. As long as the growth is in line with your established brand image, it’s wise to introduce new products or services. As amazon also entered in movies and book section flipkart and ShopClues can also try to entered in these types of thing to expand their services.
  • 58. 52 5.3 CONCLUSION The study consisted with all the work flows of major e-commerce players in India, Flipkart and Amazon. How they are performing and how they are running perfectly in the competitive world has been explained. The innovative thinking of them to reach more and more consumers is appreciable. They increased their network as much as possible with ultimate aim of reaching more and more customers. They made consumers work easier and more comfortable. In this competitive market one has to be lead and rest will follow. Based upon consumer’s survey we got our clear winner and it is Amazon. Even though it is an international company it understood Indians very well and made its roots stronger in India. Flipkart is also giving very tough competition to Amazon even though it is new company when compared to Amazon. Maybe it takes some time to overcome, but definitely they are doing very well in Indian e- commerce market
  • 59. 53 REFERENCES • https://adalyajournal.com/gallery/103-nov-2345.pdf • https://www.managementstudyguide.com/customer-satisfaction.htm • https://www.ukessays.com/essays/marketing/the-customer-satisfaction-model- marketing-essay.php • https://www.fibre2fashion.com/industry-article/5037/introduction-to-electronic- retailing • https://interestingengineering.com/a-very-brief-history-of-amazon-the-everything- store • https://www.startupopinions.com/flipkart-company-profile/ • http://www.newspatrolling.com/shopclues-company-profile/ • https://koronapos.com/blog/how-to-grow-a-retail-business/
  • 60. 54 ANNEXURE Questionnaire Dear Respondents, 1. Name: 2. Age • 15 to 25 years • 25 to 35 years • Above 35 years 3. Gender • Male • Female 4. Occupation: • Businessman • Job’ • Student • Unemployed • Other 5. Income (Monthly): • Less than 25000 • 25000 – 50000 • 50000 – 100000 • 100000 – 200000 • More than 200000 6. For how long you are using E-commerce sites? (Duration in Time) • 0 - 5 years • 5 – 10 years • 10 - 15 years • 15 years and more 7. Which online websites you prefer most to buy online products? • Amazon • Flipkart • Shop Clues
  • 61. 55 • Other 8. How often you shop online? • Once in a month’ • Once in a two month • More frequently • Very rare 9. Which payment method you use most buy product? • Debit card • Credit card • Cash on delivery • Net banking • UPI 10. What motivates you choose this e-commerce site. • Online review • Referred by friends • Advertisement • Magazines 11. Which websites offers you most satisfactory pricing • Amazon • Flipkart • Shopclues • Other 12. Which websites offers you more discount on product? • Amazon • Flipkart • Shopclues • Other 13. Which E-commerce site gives you more bank discount and cash bank? • Amazon • Flipkart • Shopclues • Other 14. Which E-commerce site you suggest to others. • Amazon • Flipkart
  • 62. 56 • Shopclues • Other 15. In festive seasons which site you choose most for shopping? • Amazon • Flipkart • Shopclues • Other 16. Rate the product received form E-Retailers from 0 to 5? • 0 • 1 • 2 • 3 • 4 • 5 17. From which of the company you have faced problem more • Amazon • Flipkart • Shopclues 18. Which kind of the problem you have faced from your E-Retailers. 1. Delay in deliveries • Amazon’ • Flipkart • Shopclues 2. Product Damage: • Amazon • Flipkart • Shopclues 3. Cheap Quality of product: • Amazon • Flipkart • Shopclues` 4. Non- delivered: • Amazon • Flipkart
  • 63. 57 • Shopclues 5. Others: • Amazon • Flipkart • Shopclues 6. Kindly evaluate the satisfactory level 1. Flipkart • Highly satisfactory • Satisfactory • Neutral • Dissatisfactory • Highly dissatisfactory 2. Amazon • Highly satisfactory • Satisfactory • Neutral • Dissatisfactory • Highly dissatisfactory 3. Shopclues • Highly satisfactory • Satisfactory • Neutral • Dissatisfactory • Highly dissatisfactory