PROJECT REPORT ON DECISION MAKING AND

INFLUENCING BEHAVIOUR- “Flash Sale by Xiaomi Redmi”

Submitted to
Prof. Sunandini Pande Ray

Submitted by
Subhadeep Chakraborty
BM18052
 ACKNOWLEDGMENT
This project would not have been possible if not for the guidance from Prof. Sunandini Pande
Ray, Praxis Business School, and the respondents. I am immensely grateful for the support and
encouragement received for the completion of this paper.

INTRODUCTION

Flash sales are often referred to as daily deals or deal-of-the-day. These sales are an
eCommerce business model in which a site offers a single or limited product selection for a
discounted price over a short period of time.
 Flipkart the first and leading online shopping site of India which introduces the flash
sale concept. Though it looks a little different from the normal sale it marks as one of the
most successful and most marketable sales concepts in India. The first mobile that came in
the flash sale was Xiaomi. It was a huge success for them. After this Flipkart released so
many mobiles on flash sale to gain user attraction. In every flash sale day within a span of 2-
3 secs more than 50,000 mobiles got sold. The registered number of people for the recent
sale of Letv Le 1s was close to 1 million.
Xiaomi is an active use of social media among other marketing channels to not only
broadcast their messages and agenda but also to actively get and remain in touch with their
customers as well as potential customers. The company’s engineers also make good use of
social media especially Facebook, to routinely communicate to users for feedback. Such
feedbacks are used in the development of new products.
The use of flash sales helps the company to sell its smartphones and other products in
limited numbers and within very limited time periods. This is an important sales strategy
that enables the company to save money that would have been used in advertisements as the
strategy does create urgency and anticipation for consumers. Just a limited number of
products are produced and sold quite fast thus making others wait for the next batch. The
wait is always with a lot of anticipation and urgency. Many people end up talking especially
on social media thus unknowingly promoting Xiaomi products.
Xiaomi has a very big and formidable fan base that has successfully been able to show
their support for the Xiaomi products. These are fans that are always present whenever a
new product is being launched. The presence of such a fan base alone is enough applause and
noise to attract the attention of potential customers.
Flash Sale of Redmi phones in India: Redmi just makes sure the entire inventory goes
in a flash. It’s just another sale, but it goes in a ‘flash’.
Customer Motivation: What triggers customers to buy? Is it availability, or is it
value, or something else. Not when the supply is limited, it creates an artificial sense of
crisis/urgency in buyers to buy the devices at the very moment that it’s available. If sales
open as usual, just at OnePlus 3/3T, the demand may not be as high and customers may
consider delaying their purchase.
Supply Side Cost: Now, ideally, a company can manufacture whatever number of
devices they please investing resources, but to optimize the costs is a challenge for a
company like Xiaomi, which operates at thin margins at devices. Hence, flash sales help
anticipate the growing size of the batches they manufacture in, hence their inventory has no
dead stock. Hence, it’s a method to optimize operational costs all over, manufacturing as well
as operational costs, keeping the product lifecycle in mind. Now, if Xiaomi opens a sale of a
new device Mi X as an open sale, without restricting the units, the demand would be high at
the beginning of the sale, though subsequently, the demand dies down in days, or a week or
two. Now the cost, to manufacture, hold inventory and move it, amounts to lesser gains for
the company than that of a “Flash” sale.
Marketing Strategy: Now, with constrained supply, as soon as customers see a
launch, they tend to spread a word in all possible circles, hence achieving huge word-of-
mouth publicity, the best means of marketing a product.

OBJECTIVE
 ❖ The research is mainly intended to see with this selling strategy, the behaviors of the
consumers can be influenced or not.
❖ Study different factors impacting on Buying behavior
❖ To study the Media impact on buying behavior factors
❖ Study effect of Product attributes on buying behavior

SCOPE

❖ The geographical scope of this research is Kolkata City

❖ Functional scope includes the consumer buying behavior of high LOI tech products
via the e-commerce platform

PRODUCT
RED MI NOTE 8 PRO

SPECIFICATIONS:
❖ PROCESSOR: Mediatek Helio G90T (12nm)
❖ INTERNAL MEMORY: 64GB
❖ Quad (64MP + 8MP + 2MP + 2MP) rear cameras
❖ Hybrid Dual, Nano-SIM
❖ 6GB RAM
❖ 4500 mAh battery
❖ SCREEN: 6.53 inches (16.59 cm)
❖ OS: Android 9.0 (Pie); MIUI 10

PRICE: 14,999-17,999 INR

RESEARCH METHODOLOGY

❖ Type of Research: Qualitative Research

❖ Research Area: Kolkata City
❖ Sampling Technique: Convenience Sampling
❖ Sample Size: 20
❖ Data Collection:
 ❖ Primary Data: Through Structured Questionnaire
❖ Secondary Data: - By using earlier surveys, magazines, books, and websites

Technologies used: Experiment (Demo) version of Amazon website pages are developed
using Shopify to use it while testing the target group.
 TARGET GROUP

❖ Location: Kolkata
❖ Age: 18-30 Years
❖ Duration of smartphone switching: 1-1.5 years
❖ SEC: A and B

QUESTIONNAIRE DEVELOPMENT

The script of the Qualitative Research for the Flash selling of Xiaomi
Mobile Phones via e-commerce platforms in India:

The respondent who has prior experience of buying products via e-commerce platform in the recent
past needed to be briefed about the subject and motive of the research which would ensure that the
interviewee, as well as the interviewer, is on the same page.

The interview is starting now.

Question 1: What was going in your mind while you choose to switch to a new handset from your
existing one and what are your expectations from the new handset which you are going to choose?-
Here the interviewer needs to be as less intrusive as possible (making it like a conversation, not an
interview) to filter the real reason out from many.

Question 2: Have you seen or heard of this new FLASH SALE thing in Flipkart or Amazon?- If YES,
then ask, Do you remember from where did you know about this?- And, Do you want to try this while
buying your new handset?

Show some information to the respondent about the product, RedMi Note 8 Pro
Xiaomi Ad: https://www.youtube.com/watch?v=8hTCIkCxSSg
Website: https://www.gsmarena.com/xiaomi_redmi_note_8_pro-9812.php
Unboxing Videos: https://www.youtube.com/watch?v=CnU0aE5Zq0Q
Review Videos: https://www.youtube.com/watch?v=IIP3l-_WNbE
OR according to his/her choice.

Open the Experiment Website Mobile Phones page and give it to the respondent and try to track and
record the behavioral patterns shown by the respondent.

EXPERIMENT 1: ORDINARY E-COMMERCE MOBILE PHONE SHOPPING

Question 3: Why did you choose this variant among the four choices?- Hear and record his/her
reason behind it and record any variation happening here in the latter part of the process.

Respondent enters to the product page.

If the respondent scrolls among the images of the product,
Question 4: What were you thinking while scrolling among the images?- Track the respondent
viewing those images in a single time or multiple times.

While the respondent in the Rating & Reviews page,

Question 5: What are you trying to find on this page?- When you get the reply, then ask, Are you
satisfied with the information provided here?- If NOT, Where do you want to go now to get what you
want?

While respondent on the payment page,

If the respondent checks the card offers and exchange offer and all others like shipping charges,
Question 6: What are you thinking about getting a deal for yours and if you are not satisfied with it
would you want to go for other options or take it?

‘The next portion is very important’- Track and record if the respondent is just adding the product to
the cart and left it there for later decision making or completing the whole process here.
If the respondent left the product in the cart without ending the process now by buying it,

Question 7: Why did you just add the product into the cart?

Question 8: When are you planning to buy it?

Question 9: Did you have chosen this product only or any other products are there in this phase?

Question 10: What are the checks do you mostly do before buying this kind of product and why?

When you get the answers, try to track and filter them accordingly to get a clear pattern
among the thought process, behavioral and decision making and driving factors and nudges which
later ends into a purchase.

NEXT DAY: SAME RESPONDENT

EXPERIMENT 2: FLASH SALE BUYING FOR THE SAME PRODUCT

Here the Respondent does not have the luxury of time and some other features (like for post-
purchase research, Ratings & Reviews of the existing customers ). The respondent gets a notification
from the e-commerce site 2 hours prior to the sale begins and mostly they get 24 hours to do all their
research and they could not have the luxury to ensure their decision while buying as they maximum
window of 10 seconds. All of these needs to be briefed by the interviewer one day prior to the
beginning of the experiment.

3 Hours prior to buying, the interviewer needs to ask some questions before beginning to
understand the thought process of the consumer at that point in time.

Question 11: How do you come to the decision of buying a smartphone through a Flash Sale? -Here
the justifications given by the consumer need to be recorded carefully for the analysis purpose.

Question 12: What are the checks do you mostly do before buying this kind of product and why?

2 Hours prior to buying,

Question 13: What are you planning to do in 2 hours to ensure to get the product within the short
window of time?- Track the activities of the respondent and try to understand the seriousness and
driving forces behind buying the product.

The buying process started and ended within 10 seconds and the respondent was able to
get the product in time.

Question 14: What are you feeling now?- Here track the behavior and the answers of the
respondent which needed to be asked within 5 Seconds after the buying process ended.

Question 15: What are the difference you are seeing now between the 2 processes? -Here record all
the differences given by the respondent and try to track and filter them accordingly to get a clear
pattern among the thought process, behavioral and decision making and driving factors and nudges
which later ends into a purchase.

RESPONSES RECORDED*

Question 1: What was going in your mind while you choose to switch to a new handset from your
existing one and what are your expectations from the new handset which you are going to choose?
❖ I usually get bored using the same handset for the last one and a half year
❖ I love to go with the new tech trends
❖ I am a heavy user so after a year phones cease to give the optimal performance as prior
❖ Some parts of my phone got damaged

Question 2: Have you seen or heard of this new FLASH SALE thing in Flipkart or Amazon?- If
YES, then ask, Do you remember from where did you know about this?- And, Do you want to try this
while buying your new handset?
❖ Yes, Tele ads, Going to buy in this month
❖ Yes, From a friend, May buy in future
❖ Yes, Tele ads, No as I could not make a decision in such a short notice
❖ No, What is it?

Question 3: Why did you choose this variant among the four choices?
❖ Price is a major factor
❖ I like this color
❖ I need more internal storage
❖ It looks good to me

Question 4: What were you thinking while scrolling among the images?
❖ Ensuring is it the right product I am looking for
❖ Ensuring the decision of the right color to go for
❖ Deciding that I liked the looks of the product or not
❖ Will it looks good in my hand

While the respondent in the Rating & Reviews page,

Question 5: What are you trying to find on this page?- When you get the reply, then ask, Are you
satisfied with the information provided here?- If NOT, Where do you want to go now to get what
you want?
❖ To see what are the existing customers are saying and is it aligned to my requirements or not.
Not Satisfied, I will go to the Red Mi retail shop to get a hands-on feel about the phone.
 ❖ To see the real pictures posted by the existing customers without any filters and cosmetic
changes. Yes, satisfied.
❖ To see how is the delivery service. Yes, Satisfied.

Question 6: What are you thinking about getting a deal for yours and if you are not satisfied with
it would you want to go for other options or take it?
❖ I want to get the best exchange value as possible for my old phone and if I am not getting it
here I will sell it on OLX
❖ As I am spending this much, I won’t pay any shipping charges for it
❖ If the delivery time is high then I would not buy it
❖ If I am not getting any card offers then I am not buying
❖ I will only go for Cash On Delivery

Question 7: Why did you just add the product into the cart?
❖ I am not sure yet as first I want to show it to my girlfriend then buy it
❖ Before buying it hands-on feel is very important for me
❖ I will buy it on sale
❖ I need more time to think before buying
❖ I am not sure yet
❖ I am not in the mood of buying it now

Question 8: When are you planning to buy it?

❖ Within this week
❖ Let the sale day come first
❖ I don’t know

Question 9: Did you have chosen this product only or any other products are there in this phase?
❖ Yes, a few more
❖ No, this is the only one
❖ Not yet, but I might add some more

Question 10: What are the checks do you mostly do before buying this kind of product and why?
❖ I take at least 2 weeks of time before buying a Smartphone as I am using it every time for a
year
❖ I don’t look for many things as all of them is mostly the same

Question 11: How do you come to the decision of buying a smartphone through a Flash Sale?
❖ Because I trust the brand
❖ It is giving so many things with such a less price
❖ Its has so fewer numbers and lots of people are trying to get it that is its means something
❖ Last time I tried couldn’t get it so this time I gonna get it
❖ So many people switched to Redmi in such a less time that means it must be good
❖ I think its a good product and want to try it for at least once

Question 12: What are the checks do you mostly do before buying this kind of product and why?
❖ I use to do more checks before buying a product online but this time I am gonna leave it-
➢ It is a one-time chance product
➢ I don’t have time to do it
 ➢ I want to get it in this flash sale and that’s all
➢ I don’t know

Question 13: What are you planning to do in 2 hours to ensure to get the product within the short
window of time?
❖ Check the internet connectivity
❖ Refresh the page multiple time
❖ Getting my self ready
❖ Checking my card as I don’t want to take chances with cash on delivery

Question 14: What are you feeling now?

❖ Like I just won a race
❖ I am just happy as I got it
❖ I was just blank for the last 30 seconds
❖ I didn’t get the variant I wanted but it’s okay I got at least the product

Question 15: What are the difference you are seeing now between the 2 processes?
❖ Just the time was less
❖ No time to think

*All the similar kinds of responses are clubbed together to a response

RESEARCH ANALYSIS
❖ TIME PRESSURE: There is a scarcity of time which leaves the customers no time to think
which would clear all the barriers within the buying process where they can get diverted
easily. This scarcity of time and the hype due to Marketing Promotions influence the decision
making of the customers towards purchasing the product.

❖ LIMITED QUANTITY: Quantity scarcity refers to how much has been purchased by others,
thus it helps to conclude a symbolic benefit. Hence the creation of artificial scarcity affects the
consumer’s buying decision greatly.

❖ PERSONALITY TYPE: Personality impacts consumer buying behavior. The paper found
that personality traits such as competitiveness which in turn influence the thought process of
a customer towards buying the product, take charge and security also impact consumer
buying behavior.

❖ IMPULSE BUYING BEHAVIOUR: Impulse purchase accounts for good-sized sales across
a wide variety of product categories. According to Rook and Hoch (1985), most people
experience impulse purchases. Other research also supports this statement revealing that
most of the respondents have made purchases on impulse frequently. And impulse buying
behavior does not come naturally for a high level of involvement products like Smartphones.

❖ UTILITARIAN VALUE AND STATUS: Sales promotion that helps consumers increase
utility, efficiency, and value of their purchase, it is classified as utilitarian promotions and the
benefits are called utilitarian benefits. The size of utilitarian benefits has the potential of
 making shoppers feel smart about their purchase and also resourceful. It can be seen in the
research that there has been a creation of artificial utility.

❖ AGE AND INCOME: In the current era, the disposable income of consumers have gone up
and so have their spending online. Also, the percentage of consumers using online shopping
has increased over the past few years. The ease of finding targeted respondents proves the
above statement.

LIMITATIONS

❖ The research is confined to Kolkata only

❖ Money constraint was there which hinder the optimum quality of the whole research
❖ Expertise constraint which enabled us to mimic two to three webpages of the Amazon website,
not the whole format which later affects the experience of the respondents
❖ Manpower constraint also affects the whole study though a minimal margin

CONCLUSION
The study indicates that value-conscious consumers are more likely to participate in flash
sales. Personality types such as competitiveness also showed a significant impact on the purchase
behavior for flash sales. The time pressure created during flash sales has an impact on the likelihood
to shop on flash sales. However limited quantity did not have a significant impact as suggested by the
research, which could be taken forward to understand the reasons for such an effect. Other factors
such as the frequency of online shopping and income have a significant impact on the likelihood to
shop on flash sales.
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