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Unnati Sable Full Dissertation
Unnati Sable Full Dissertation
Unnati Sable Full Dissertation
A Dissertation
Submitted By
(MBA II yr)
PROF. R. K. DHANUKA
To
PRMIT & R
A Dissertation
Submitted By
MS. UNNATI A. SABLE
MBA II yr
To
Sant Gadge Baba Amravati University, Amravati
PRMIT & R
Through
The Head
Department of Management Studies (M.B.A.)
PROF.RAM MEGHE INSTITUTE OF TECHNOLOGY AND
RESEARCH-BADNERA-AMRAVATI
(2021)
CERTIFICATE
Submitted By
MS. UNNATI A. SABLE MBA
II yr.
PROF. R. K. DHANUKA
(Guide)
Prof.A.V.Deshmukh Dr.A.P.Bodkhe
(HOD) (PRINCIPAL)
Date-
Place-Amravati
Declaration
I (MS. UNNATI A. SABLE) hereby declared that this
dissertation is the result of my own Research work and the
same has not been previously submitted to any
examination of this University, or any other
University.
The Dissertation shall be liable to be rejected and/or
cancelled if found otherwise.
ACKNOWLEDGEMENT
I take this opportunity to acknowledge the deep sense of gratitude towards
my Guide, Prof. R. K. Dhanuka, Assistant Professor, Department of
Management Studies-MBA, Prof.Ram Meghe Institute of Technology and
Rresearch,Badnera-Amravati.While working on this Dissertation, I faced
innumerable problems and practical difficulties, but the revered guide
proved to be my inspiration and sailed me through all the obstacles
impressing upon. I am gratefully indebted to him for his strainous efforts
and excellent Guidance from time to time during the entire course of
Dissertation work.
My sincere thanks to our Honorable, Principal, Dr.A.P.Bodkhe,
Prof.Ram Meghe Institute of Technology and Research, BadneraAmravati,
for their constant encouragement.
I wish to thank our Honorable, Head of the Department,
Prof.A.V.Deshmukh, for their Valuable Guidance and motivation. I would
like to thanks all the teaching and non teaching staff of Department of
Management studies for their valuable support.
I would like to thank my beloved parents & friends for their inspiration
and motivation provided by them in the due course of my Dissertation
work.
I would also like to extend my sincere thanks to all those persons who
provided their timely and much needed help directly and indirectly for the
completion of this Dissertation work.
List of Tables
List of Graphs
ABSTRACT
3.7 Sampling
5.1 Findings
5.2 Conclusion
5.3 Suggestions
BIBLIOGRAPHY 50
APPENDCES 51-53
LIST OF TABLES
What is that you do when you need to gift your parents or friends on their birthday or for
any festival? The majority of people today hop to the internet, browse through a few
websites that sell gift items like books, clothes, perfumes etc. and order one of them to be
dispatched to the person’s address. It takes just a few minutes at the maximum and a click!
Very few people today bother or even have the time to drive down in the heavy traffic to
some boutique and go through all the items there, hop on to a next one and so on and finally
select a gift and then go to the courier shop to parcel them off.
The growth of e-commerce industry has made lives easier for countless people. It’s not just
gifts but even everyday items like grocery and notebooks and pens that can be bought
online. Books, clothes, shoes, jewellery and accessories, travel tickets and hotel bookings
are some of the commonly purchased items online.
In looking over the challenges identified above, one certainly could ask, “So what is really
different about e-business?” Overall, the answer that firms have faced most of the
challenges identified in the past, and that this simply represents the latest iteration of these
challenges.
Any technology-based firm must deal with developing people skills among their Technical
managers, be they engineers, financial analysts, or software developers.
Managing across generations is certainly not a new issue. And both the job churn and the
ensuing talent shortage are inherent in any technological revolution. Thus, again, what’s
new? We argue that two factors distinguish managing people in an e-business today from
managing in a brick and mortar business.
A COMPARATIVE STUDY OF CUSTOMER PREFERENCE AND CONSUMER
SATISFACTION IN ONLINE SHOPPING AMONG AMAZON AND FLIPKART WITH
CHAPTER 1
INTRODUCTION
The internet has played a significant role in our daily life in that people can talk through
the internet to one who is actually on the other side of the Earth, can send email around the
clock, can search information, can play game with others, and even can buy things online.
Meanwhile, Internet shopping has been widely accepted as a way of purchasing products
and services. It has become a more popular means in the Internet world (Bourlakis et al.,
2008).
It also provides customer more information and choices to compare product and price, more
choice, convenience, easier to find anything online (Butler and Peppard, 1998). Online
shopping has been shown to provide more satisfaction to modern customers seeking
convenience and speed (Yu and Wu, 2007). On the other hand, some customers still feel
uncomfortable to buy online.
Lack of trust, for instance, seems to be the major reason that impedes customers to buy
online. Also, customers may have a need to exam and feel the products and to meet friends
and get some more comments about the products before purchasing. Such factors may have
negative influence on customer decision to shop online.
Online Customer behaviour is a complex construct and not easy to understand or to predict.
It is obvious that customers likely to get information online but prefer to make the actual
purchase offline. Even if they bought something over the internet, if the product is
defective, they preferred to hand it over to physical experts to get it repaired (Ward A.
Hanson and Kirthi Kalyanam, 2007). Of late, the internet is a new buying channel which
is preferred by many of the shoppers and decides whether to buy or not to buy online (Susan
G.Holl, 2012).
There are some salient features of online buying. They are as follows:
ii) Items are not on hold- someone has to deliver the product and it involves delays
and costs.
iii) On the net, a customer cannot touch or feel the product iv) Better information makes
v) Internet makes it easier to do comparison shopping and to compare prices from different
sellers.
vi) The customer has to plan ahead when he buys on the internet.
Middle-class population with spending power is growing. There is about 200 million of
middle-class population with good spending powers. These people have very little time to
spend for shopping. Many of them have started to depend on internet to satisfy their
shopping desires. The amount of customer spending through online buying has shown a
steady trend during the last few years.
Middle-class population with spending power is growing. There is about 200 million of
middle-class population with good spending powers. These people have very little time to
spend for shopping. Many of them have started to depend on internet to satisfy their
shopping desires. The amount of customer spending through online buying has shown a
steady trend during the last few years. The key enablers are given as under:
India is comparatively a young nation with more than 50% of population with a median
age of 25 years. Young customers are Internet savvy and access it on regular basis. Battle
among online retailers is for the mind-share of customers (Madaan K.V.S, 2009).
Growth usage of credit cards, cheques and cash on deliveries have prompted customers
even with low payment capacity to opt for online shopping experience.
Now the customers are likely to spend money but have little time for their shopping list.
Ease of buying by spending little time is the prime factor prompting the buyers to purchase
online. It is a much better option in case of routine purchases.
Though optimum utilization of space is an issue in online retailing, it does not face space
constraints like physical stores. So, more choices can be actually offered to customers.
India plaza is carrying over thousands of Stock Keeping Units (SKU) spread over 27-28 of
product categories (Christopher Lovelock and Lauren Wright, 2002).
Online retailers tend to ensure that products are available at prices lower than that of
market. E-retailers can use price discrimination in an efficient manner (Singh.K.D, 2012).
Though human interface and spontaneous response to customer queries are not there in
cyberspace, more detailed and accurate information about the products can still be found
on the online stores.
Websites such as flipcart.com, amazon.com make the process of comparing, buying and
receiving books that are interesting, convenient, and easy to use.
With web search capabilities (which need further development) it is easier to find the
particular types of goods required by a customer. The customer decides what he wants to
buy rather than the retailer offering what he wants to sell. This ultimately translates into
customer empowerment.
Customers‟ Attitude toward online shopping has gained a great deal of attention in the
empirical literature. It is believed that Customers‟ Attitude will affect the intention to shop
online and eventually whether a transaction is made. It refers to:
ii) Customers‟ attitude toward a specific inter store (i,e., to what extent customers
think that shopping at this store is appealing).
This is the most substantial step in online shopping activities, with most empirical research
using measures of frequency (or number) of purchases and value of online purchases as
measures of online purchasing; other less commonly used measures are unplanned
purchases.
It can be defined as the extent to which customer‟s perceptions of the online shopping
experience confirm their expectations. Most customers form expectations of the product,
vendor, service, and quality of the website that they patronize before engaging in online
shopping activities. These expectations influence their attitudes and intentions to shop at a
certain Internet store, and consequently their decision-making processes and purchasing
behavior. If expectations are met, customers achieve a high degree of satisfaction, which
influences their online shopping attitudes, intentions, decisions, and purchasing activity
positively.
A general purchase model has been proposed to help the companies design strategies for
online marketing, advertising and selling. This process model consists of almost all of the
online activities that a customer may perform during a purchase. However in practice, some
of these activities may be performed offline in some cases where digitization is not feasible.
The purchase process model consists of seven activities that can be grouped into three
phases namely pre-purchase phase, purchase consummation and post-purchase interaction.
Although each customer has a distinct way of purchasing and district criteria for making
online buying decision, some generalizations can be made for understanding the broad
customer dynamics. Each of the customers purchasing phase in detail, which are as follows:
The Pre-Purchase preparation phase includes the search for the product(s) in question in a
larger information space based on some customer criteria and attributes. The search on
attribute comparison is based on the prices, discounts, delivery terms, etc.
The pre-purchase preparation or the search for the right product often involves some
prepurchase deliberation on the part of the customer. This may be defined as the elapsed
time between the customers‟ first thought of buying the product and the actual purchase
itself. The extent of pre-purchase deliberation may vary depending on the customer
(impulsive, patient or analytical), the product and the purchase situation.
It is during this pre-purchase period that customers look for information on variables that
are important in the purchase decision. It is for the companies and marketers to tap the
prospective customers during the deliberation period by designing and creating suitable
online shopping environments. For this they need to focus on questions such as:
i) How much time the buyers spend on their purchasing decisions with respect to various
products? ii) What are the factors that affect the customer decision time?
iii) What is the right shopping environment that keeps customers happy and wanting to
return? iv) What are the processes/trends that customers mostly rely on for informational
search?
The next step after customer information search is the product selection based on various
attributes. Here the intermediaries called information brokers play a vital role. Information
brokers are needed for three reasons namely comparison shopping, reduced search costs,
and integration.
Comparison shopping agents provide a comparative analysis of the product from various
sources/vendors in terms of price, delivery terms and product attributes, thus helping the
customers in selecting the best buy. Some comparison agents may focus on products
attributes based on customer choices/criteria while for others the lower price may be sole
aim. Intermediaries or information brokers also perform the function of service integration.
For example, an intermediary may integrate the functions of providing information on
products to customers, negotiating the terms with the manufacturer, accepting the orders
and payments and also the delivery of the product.
Once the products to be purchased have been identified, a transaction is carried-out between
the buyer and the seller. The transaction consists of an exchange of information between
the buyer and the seller for the negotiation of terms, confirmation of order, payment, and
delivery of products/services. Depending upon the degree of digitization of the delivery
and payment, the transactions under different situations may be different.
The buyer contacts the seller with a request to buy. This may be through the website of the
vendor, e-mail or telephone. ii) Vendor quotes the price, if a customer requests. iii) Buyer
and seller may enter negotiations on the price and other terms.
iv) Once the terms have been decided, the buyer authorizes payment to the vendor.
This may be through encrypted credit card number or online smart card payment or
electronic cash.
v) The vendor contacts the appropriate payment institution for the verification of the
payment authorization.
vi) The payment institution approves the payment and gives the vendor a green signal
to carry-out the delivery.
vii) The vendor informs the buyer the details of delivery in case of physical delivery or
delivers the product electronically for the digital products.
viii) Buyer sends vendor the receipt of information or products. In turn, the vendor tells
the payment institution to complete the transaction. ix) The payment institution bills the
The companies or marketers design strategies for the best online services to the
customers/buyers. This may be achieved through interactive and user friendly from for
purchase requests, payment details, delivery details, etc. Also if the vendor is accepting
online payments, it should be in a position to accept payments in any form-credit card,
ecash, smart cards, etc., for the convenience of the users. This will also aid in increasing
the customer base of the vendor.
Post-Purchase Interaction between the buyer and seller mainly consists of customers
service issues. These may involve issues as product installation/use, information or related
products, service requests, products enhancements, etc. To deal with the postpurchase
interaction phase, the companies‟ marketers need to set-up online helpdesks for quick
service to the customers.
Major reason that impede customers from online shopping include unsecured payment,
slow shipping, unwanted product, spam or virus, bothersome emails and technology related
problems. E-retailers should be aware of such major problems which lead to dissatisfaction
in online shopping.
On-line buying tends to facilitate the business transactions but unless the transaction
involves a digital product such as, software or music, etc., due emphasis should be given
on prompt and smooth delivery of the products. Majority of E-retailers focus on significant
marketing efforts to attract customers, in order to execute transactions but tend to follow
through and ensure a smooth delivery to the customer.
The companies can also use the web to enhance the customer experience by allowing the
customers to track the status of the transaction. So, it is not simply a case of allowing for
delivery but enhancing the delivery experience with the web.
In the online medium, credit card transactions are fast and are becoming the preferred mode
of payment. Credit card providers take a percentage of the transaction, and this may
be higher for the web than for a traditional retail store. The high transaction cost is
perceived, as a risk premium because the E-retailer cannot capture the signature of the
purchaser, to remove any possibility of credit card misuse in the online environment.
Emerging payment media include Smart Cards, Paypal, Verisign, etc. for the online retail
markets to grow to their full potential.
In an online environment, there is a conflict between the need for privacy on the part of the
customer and the need to be able to personalize the offering on the part of the Eretailer
(aimed at providing a better experience to the customer). Finding an equilibrium between
the two is tricky. E-retailing solutions that can simultaneously address both the issues can
make a significant impact on the growth of this segment.
Security issues hold the centre stage when it comes to customer concerns while shopping
through the online media. A lack of trust and privacy concerns prevents a lot of customers
from making online purchases. Customers are also concerned with the use of their data
provided during the online transactions.
Portal design plays a critical role in on-line buying. The overall design of the portal has
been an issue as web designers often fall short of understanding this medium and its
capabilities. A common problem about to be finalized, Shopping cart technology is used to
facilitate the online transaction process.
A Majority of customers still find the medium of internet difficult to access and use. The
adoption of broadband has been slowed-down due to the last-mile connectivity issues. This
has put a limitation on the ability to design the right e-retailing environment to encourage
online transactions. The customers using the online shopping channel should be assured
that the product that they have ordered would reach them in due time. For this the retail
companies have resorted to private guaranteed courier services compared to postal services.
Another reason why the concept of e-retailing or online has not gained prominence in India
is that the Indians prefer to touch the products physically before buying them. This facility
is provided through the multi-brand outlets, not available online. Studies have revealed the
preferences of the customers towards the traditional shopping methods. Hence, the retailer
online should first make it a point to spot the potential customers and accordingly plan-out
the product.
On-line buying extends beyond the national boundaries and connects a global audience.
Rules for commerce and its legal framework have evolved within the geographically
limited national and state borders. To facilitate the growth of on-line buying, a legal
framework needs to evolve that makes sense for a global marketplace (Magg et al., 2006).
This is perhaps the most challenging aspect to overcome in order to help the growth.
Indian e-commerce market has grown up at a combined annual rate of 30% since 2009, and
is anticipated to be around Rs 111600 crores opportunity by 2015. The conclusion a part
of report Indian e-commerce tip of the iceberg, by Macquire Equities analysis on rising
web inhabitants, over three hundred million social class population, growing mobile access
and small ranks of online shopping movement. Compared to the India‟s on-line shopping
business continues to be in its babyhood. Ecommerce contributes solely zero. The 6% of
the country‟s value vs 1-3% for other countries, with only 12 tone music of India‟s on-line
population transacting online vs sixty fourth for the United States and over five hundredth
for China. The growth can additional be brings out by firms entering into for public listing.
The character of Indian e-commerce is additionally totally changed. Travel has the big
share of 71 of Indian e-commerce market; however e-tailing has grown up the quickest, at
a 59 CAGR between 2009 -2013 to succeed in e-commerce market. India‟s ecommerce
business continues to be in its babyhood, compared to the west. However we tend to judge
that it should become a much more a piece of the complete trade creation than within the
west.
A number of young Indians, on-line shopping might become their key thanks to such during
their lives. Whenever necessary chance like e-commerce gift themselves, several market
contributors compete sharply to do to come out as undisputed leaders to realize brand
recognition and client loyalty, and often players amendment their trade sculpt on the thanks
to raise with the e-commerce market. Two chief industry associations created separate
reports on e-commerce in India for the period of the year 2000-2001. One of them was
prepared by the Confederation of Indian industry (CII), whereas the opposite was specially
made by the NASSCOM both the reports are hopeful about the expansion of e-commerce
in India. The Confederation of Indian industry (CII) report estimates the volume of e-
commerce to grow to Rs.500 billion in the year 2003. The NASSCOM report, on the other
hand, estimate for identical year that the total volume of e-commerce was Rs.1950 billion.
AMUL, Anand Milk Union Limited was formed as a cooperative dairy in the small town
of Anand in 1946. Anand Milk Union Limited is the largest manufacturer of Milk and Milk
Products in India. By using e-commerce AMUL milk cooperative, is lucratively to expand
its brand reliability. Likewise, in the automotive sector corporate are raising their client
dealings through this intermediate. A quantity of the fresh names that square measure
rediscovering e-commerce during fresh entry at relatively small capital cost, while not
project capital supply. In the recent years the budding use of the internet and small price of
the computer has exposed the marvellous expansion of e-commerce in India.
India is its first phase of development, as compared to the western countries. E-Market
forecast that on-line auction can over double by reaching $168.7 billion in 2011. As per the
Indian e-commerce report released by Internet And Mobile Association of India (IAMAI)
and Payments Council of India (PCI) the digital expenses business is normally to raise at a
rate of 40% to achieve Rs 120120 crores by December 2014 which was pegged at Rs 85800
crores in December 2013.
The service competes primarily with Amazon's Indian subsidiary and domestic rival
Snapdeal. As of March 2017, Flipkart held a 39.5% market share of India's e-commerce
industry. Flipkart has a dominant position in the apparel segment, bolstered by its
acquisition of Myntra, and was described as being "neck and neck" with Amazon in the
sale of electronics and mobile phones. Flipkart also owns PhonePe, a mobile payments
service based on the Unified Payments Interface.
In August 2018, U.S.-based retail chain Walmart acquired an 81% controlling stake in
Flipkart for US$16 billion, valuing Flipkart at around $20 billion
History
Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal, alumni of the
Indian Institute of Technology Delhi and former Amazon employees. The company
initially focused on online book sales with country-wide shipping. Flipkart slowly grew in
prominence and was receiving 100 orders per day by 2008. In 2010, Flipkart acquired the
Bangalore-based social book discovery service WeRead from Lulu.com.
CHAPTER 2
REVIEW OF LITERATURE
Day & Landon, (2017) explained that, Sometimes strategies of online marketers are not
according to the online shoppers, so that they are not satisfied with the delivery system of
online shopping.
Crawford, (2017) in his study, said that the traditional customer behavior shopping has its
own model, where firstly they identify the problem, get the information, search the
alternative, then purchase.
Dubrovski, 2015 said that internet marketing having so much of alternative available to
customers where the can screen the items & services and avail them.
George 2016 used theory of planned behavior (TPB) to develop a model for customers‟
online purchasing behavior. A strong correlation between how trustworthy an individual
finds on the internet and how positive an individual's attitude is towards online purchasing
and that an individual's attitude towards online purchasing has strong effect on the intention
to make them purchase by internet is highly supported.
Vyas and Srinivas (2018), in their study stated that majority of the internet users were
having Positive behaviors towards online shopping. There exists a need for developing
awareness about customers‟ rights and cyber laws.
Ahasanul Haque& Ali Khatibi, 2017 in this, Customers like online shopping, because it
saves time because no need to go anywhere. By rapid access customers get information
quickly. It removes of physical appearance.
Miyazaki and Finandez (2015) made an attempt to explore the relationship among the
internet experience levels, risk perception and online purchasing rates. They analyzed that
higher level of internet experience could lead to lower risk perception regarding online
shopping, fewer concern regarding system security or fraud and more concern regarding
privacy, customer participation on another remote purchase methods related to lower risk
perception regarding online shopping. It was concluded that higher internet experience and
the use of other remote purchasing methods were related to lower levels of perceived risk
towards online shopping which could result in higher online purchase rates.
Smith and Alan (2019) in their paper observed that over years, the internet has provided an
inexpensive and efficient way for companies to create an additional electronic sales channel
to market their products. Like any marketing channels, the goal is to increase sales and one
method that delivers content that is relevant to electronic commerce termed as e-
personalization. The current E- commerce channels can be enhanced through the use of
personalization techniques provided that companies with the products, contents and
information them alive. However, privacy and accuracy of personal information plays an
important role in personalized contents which has raised the questions of government
intervention in to the realm of e- personalization.
Sita Mishra (2017) in his paper he empirically studied a sample size of 200 Internet users
in Delhi. From this study he explained that customers have positive attitude towards online
shopping. The analysis revealed that in null hypothesis that the age and income do not have
significant association with customer purchasing attitude.
The study concluded that the customers with higher income do online shopping more and
also found that the respondents having different age groups demonstrate different attitudes
towards online shopping. Finally, he said that convenience and technological advancement
plays a major role in online shopping.
Delafrooz, Narges et al. (2014) analyzed that customers‟ attitude towards online shopping
are affected by four main factors. Those factors are utilitarian orientation, convenience,
price and wider selection. He discussed that there were three more things which were
personalities of customers, online shopping perceived benefits and promotions of shopping
sites.
Saprikis, Vaggelis et al. (2015) analyzed the perceptions of Greek university Students on
online shopping in terms of demographic profile, expectations of online stores, advantages
and problems related to online purchases. He found that there were lot of differences
regarding online purchases between various customers
depend upon their behaviors. The results showed significant differences between the two
groups of customers, who were involved in the online shopping and who were not
interested in online shopping. Interested customers were having higher expectations from
e-marketers on issues related to privacy policy and risk. The differences found were related
to perceptions on benefits and problems of online shopping.
Syed et al. (2018) analyzed that there were four key factors which affected the young
customers‟ perceptions towards online shopping that those factors were website design,
website reliability, customer service and privacy. The very important factor that was affect
customers behavior towards online shopping was trust, reliability which is everything for
the buyers.
Asakawa and Okano (2017) analyzed the factors influencing customers‟ perception of
online shopping and explained that were convenience, anxiety regarding security and poor
navigation. He found that convenience had a positive influence on online shopping whereas
anxiety regarding security and poor navigation had a negative influence.
Shergill and Chen.(2015), discussed the relationship between the factors affecting the
buyers‟ behavior towards online shopping and the type of online buyers that were website
design, website reliability, website customer service and website security or privacy.
Adams et al. (2014) discussed the underlying factors related to personal online shopping in
the workplace. The reasons for online shopping at work that were boredom, connection
speed, convenience, work life balance, efficiency etc. In their study they found that
Americans were more found of shopping online at workplace than Canadians. So the main
reason that they realized was faster connection.
Changchit (2016), examined the perception of customers towards online shopping and the
various factors which were perceived differently by the groups of customers. Those factors
were past experience with online shopping, perceived risk with online shopping, perceived
benefits of online shopping, perceived uncertainty of online shopping and perceived ease of
online shopping.
Bhatnagar, Misra and Rao (2011) calculate how demographics, wholesaler service item
characteristics, and web site value influence the shoppers, their approach towards online
looking and accordingly their on-line shopping for performance. There are three division
of TV looking including home looking infomercials, networks and therefore the short form
industrial (Agee & Martin, 2011). Lack of trust is one of the foremost commonly cited
reasons for shoppers not looking on the web (Lee and Turban, 2001).
Carol & Jay (2002) specified that shoppers United Nations agency leaf through or acquire
on the web had completely different awareness of convenience. Shoppers doubtless need
to buy within the store locating and discard multiple types of non store looking. Others
wish to browse numerous non store media and have comprehensive their browsing to the
web, yet preserve their loyalty to in store purchases. The Internet symbolize a
internationally network linked of computers providing individuals, corporations and
businesses, instructional establishments, governmental organization and countries the
flexibility electronically to speak (E-Marketer, 2002).
Kim and Park (2013) in a very study "Identifying key factors distressing customer purchase
behavior in looking situation" investigated the relationship between completely different
characteristics of online looking and customer purchase trends.
Jongeun Kim (2012) explored the approaches of respondents towards getting product on
internet. the aim of the study was to steer round the variations among four potential teams
of internet users the non web user, the user UN agency solely visits internet stores without
purpose to shop for, the internet browser UN agency has AN aim to buy online still has not
at all done thus and therefore the one who has created an online buy.
The relevant market structures and therefore the distinctiveness of the merchandise in
question to begin of the patron decision chain are going to be influenced by the place.
Customers' angle towards on-line looking may be a well-known issue touching actual
shopping for trends.
Research summarized by E-marketer (2015) showed that the internet applied a superior
influence than for offline media for natural philosophy compared thereto wear, beauty or
home perfection as would be expected. Net selling has modified the method folks obtain
and sell good and service.
Rose Sebastianelli, Nabil Tamimi and Murli Rajan (2017) studied the North American
people online customer‟s awareness concerning the excellence of online looking
experiences. With the study whether or not the prevalence with that they buy product online
and therefore the sorts of product they purchase concern their perceptions of net distributor
superiority. Within the study, the standard of on-line looking is measured employing a set
of things that symbolize four phases encountered once looking via the Internet:
(3) Forms
Lian and lin (2008) studied the four completely unusual product that enclosed Books,
online magazines, TV recreation computer games and system. The study point out that
person privacy issues harmfully influenced client approaches toward for books online
shopping. The systematic consequences point out confidentiality issues harmfully affected
approach toward online purchases of Television recreation systems. For online magazines
and news, solely item participation considerably and completely influenced approach
toward getting trends. The professed internet safety and merchandise participation were set
up to completely have an effect on attitudes toward online purchases of computer games.
Norazah Suki and Norbayah Suki (2019) performed a study on „Cellular Phone Users
enthusiasm to buy Online‟. As per study recommended marketers ought to provide a lot of
on enticing promotion such as advertisements or is counts through the online.
CHAPTER 3
RESEARCH METHODOLOGY
The present study is carried out to know customer awareness towards online shopping in
Amravati city. Methodology of the research includes primary and secondary data through
interview, observation, and online information.
Research is a systematic activity to achieve the truth. Research includes the procedure of
collecting data, analyzing the data and finding the conclusion or truth. Research depends
upon the scientific procedure. Research methodology is a way to systematically solve the
research problem. It may be understood as a science of studying how research is done
scientifically. Research methodology involves activities designed to achieve research
objectives. In order to ensure that the appropriate information is collected, a detailed
research plan must develop.
The planet earth is experiencing the impact of the developments and products of Science
and Technology. One of its main contributions is online shopping. Online shopping is an
emerging, innovative and interesting area in marketing. Today‟s customers are so comfort
seeking and demands everything in their place itself. Online shopping best fit the present
customer‟s requirement.
• To analyze the factors those affects customers attitude towards online shopping in
Amravati city.
A research design specifies the method and procedure for concluding a particular study.
Research design can be grouped into three categories exploratory research, descriptive
research and hypothesis testing.
Primary Data:
Primary data: Data collected by the investigator himself/ herself for a specific purpose.
If the investigator collects the data originally for the investigation this data is called as
“Primary Data”
● Personal interviews
● Observation
● Questionnaires
● Official records
Secondary Data:
Secondary data refers to data that was collected by someone other than the user. Common
sources of secondary data for social science include censuses, information collected by
government departments, organizational records and data that was originally collected for
other research purposes.
If the investigator does not collect the data originally but uses data collected by other,
investigator or agency and available or unpublished form this data id called as
“Secondary Data”
● Books
● Magazines
● Internet
● Journals
● Websites
The study is based on both primary data and secondary data. The primary data has been
collected by using a questionnaire and the secondary data has been collected from both
magazines and the internet.
3.7 Sampling
Sampling means it consists of what is sampling unit, sample size and sampling technique.
The sampling is the basic unit of containing the elements of population to be sampled.
Universe
The universe of this study was Amravati.
Sampling elements
The simple percentage technique and ranking techniques is used for satisfying the above
objectives.
Sampling method
The sampling method used for this study was Simple Random Sampling technique. Simple
random sampling is a type of probability sampling in which the researcher randomly selects
a subset of participants from a population. Each member of the population has an equal
chance of being selected. Data is then collected from as large a percentage as possible of
this random subset
Advantages of Method:- Simple random sample advantages include ease of use and
accuracy of representation. No easier method exists to extract a research sample from a
larger population than simple random sampling.
Limitations of Method:- Difficulty Accessing Lists of the Full Population
Time Consuming
Costs
Sample Selection Bias
Sample design
A definite plan for obtaining a sample from sampling frame is called the sample design. It
refers to the technique or the procedure a researcher adopts in selecting some sampling
units.
Sample size
For the research of study sample size were 100 respondents who do online shopping
Research Method
The research method used for this study was quantitative method. Quantitative methods
emphasize objective measurements and the statistical, mathematical, or numerical analysis
of data collected through polls, questionnaires, and surveys, or by manipulating pre-
existing statistical data using computational techniques.
Advantages of Quantitative Method
➢ The quantitative approach allows researcher to reach a higher sample size.
➢ Researcher can collect information quickly when using quantitative research.
➢ Quantitative research uses randomized samples.
➢ Results duplication is possible when using quantitative research. Limitations of
Quantitative Method
➢ Related secondary data is sometimes not available or accessing available data is
difficult/impossible
➢ Difficult to understand context of a phenomenon
➢ Data may not be robust enough to explain complex issues
● This research will develop new resource for the researcher who will study on future.
● As only one city was surveyed, it does not represent the overall view of the Indian
market.
● Some of the respondents were reluctant to share the information with the researcher.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Google Form Link:- https://forms.gle/E3NaD5nMaDxDS16W7
Male 58 58%
Female 42 42%
Total 100 100%
Graph 4.1 Gender wise distributions of respondents.
Gender
Male
42% 58% Female
Interpretation :-
From the above graph it is interpreted that 58% participants are male and 42% are female.
Analysis :-
Age Analysis
60
50
40
30
50 No. of Respondents
20
30
10
14
6
0
18-26 yr 26-35 yr 36-45 yr 46 above
Interpretation:-
From the above graph it is interpreted that 50% of respondents were between the age of
18-26 yr ,30% were between the age of 26-35 yr, 14% respondent were between the age
of 36-45 yr and 6% respondents belong to the above 46 years age group .
Analysis:-
The study shows that most of respondents were in the age group of 18-26 years that is young
age group.
Under Graduate 7 7%
Total 100 100%
Graph 4.3 Classification on basis of educational qualification.
Educational Analysis
7%
3%
Graduate
40% Post Graduate
None
50% Under Graduate
Interpretation :-
From the above graph it is interpreted that 40% participants are graduate, 50% are post
graduate, 7% are under graduate and 3% are none.
Analysis :-
Income Range
Less than Rs. 2 lakhs
per annum
10
10 Rs. 2 lakhs to 5 lakhs
45 per annum
5 lakhs to 10 lakhs per
35 annum
More than 10 lakhs
per annum.
Interpretation :-
From the above graph it is interpreted that 45% participants have less than 2 lakh per
annum, 35% Rs. 2 lakhs to 5 lakhs per annum, 10% 5 lakhs to 10 lakhs per annum, 10%
More than 10 lakhs per annum.
Analysis :-
The study shows that majority of participants are having less than 2 lakh per annum
2 to 3 days a week 8 8%
1or 2 hrs. a day 42 42%
Use of Internet
5 8 Once a week.
45 2 to 3 days a week
1or 2 hrs. a day
42
More than 3 hours
Interpretation :-
From the above graph it is interpreted that 5% participants have use of Internet once a week,
8% 2 to 3 days a week, 42% 1 to 2 hrs a day, 45% more than 3 hours.
Analysis :- The study shows that majority of participants use internet more than 3
hours a day.
No 0 0%
Awareness
100%
80%
20%
0%
0%
Yes No
Interpretation :-
From the above graph it is interpreted that 100% participants are aware about the online
shopping,.
Analysis :- The study shows that majority of participants are aware about the online
shopping.
E-Commerce Shopping
20 20 Most likely
Very likely
20 Not likely
I never shop online
40
Interpretation :-
From the above graph it is interpreted that 20% participants are most likely shop through e-
commerce, 40% very likely, 20% Not likely, 20% never shop online.
Analysis :-
The study shows that majority of participants are very likely to shop e-commerce.
Amazon 35 35%
Jabong 15 15%
Snap deal 10 10%
paytm 20 20%
Total 100 100%
E-Commerce Websites
40
30
20 35
10 20 15 20
10 No. of respondent
0
Interpretation :-
From the above graph it is interpreted that 20% participants are most likely shop through
flip kart, 35% Amazon, 15% jabong, 10% snap deal, 20% paytm.
Analysis :-
The study shows that majority of participants are very likely to shop e-commerce amazon
site.
Cash 33 33%
Total 100 100%
Payment mode
50
40
30
46%
20 Payment mode
33%
10 21%
0
Wallet Debit/ credit Cash
card
Interpretation :-
From the above graph it is interpreted that 21% participants have use wallet for payment,
46% debit/ credit cards, 33% cash.
Analysis :-
The study shows that majority of participants use debit/ credit card for the payment.
Table 4.10 Classification on basis of user friendly of the e- commerce websites which
you preferred the most
Ecommerce shopping No. of respondent Percentage %
For product comparison 35 35%
E-Commerce Shopping
For product
10 comparison
15 35
For price comparison
Payment option
40 offered
Speed of website
Interpretation :- From the above graph it is interpreted that 35% participants are most
likely shop through ecommerce site for product comparision, 40% For price comparison,
15% Payment option offered,10% Speed of website.
Analysis :- The study shows that majority of participants are very likely to shop ecommerce
site for product comparision.
Discount deals 4 6 20 30 40
Product variety 5 15 20 30 30
Interpretation :-
From the above graph it is interpreted that most of the participants rated 5 for the discount
deals and product veriety.
Analysis :- The study shows that majority of participants are rated mostly the discount deals
on shopping websites.
4.12) Classification on basis of product varieties that generally prefer buying through
Flifkart.
Table 4.12 Classification on basis of product varieties that generally prefer buying
through Flifkart.
Ecommerce shopping No. of respondent Percentage
%
Clothing 35 24%
Mobiles 40 28%
Personal product ( perfumes, 15 10%
beauty creams)
Laptops and accessories 20 14%
Home and furniture 5 3%
Books 20 14%
Healthcare product. 10 7%
Total 100 100%
Interpretation :- From the above graph it is interpreted that 24% participants are most
likely shop clothing through Flifkart, 28% mobiles, 10% personal products, 14% laptop
and assesories, 3% home and furniture, 14% books.
Analysis :-The study shows that majority of participants are very likely to shop mobiles
from through Flifkart site.
4.13) Classification on basis of How comfortable are you with the features of
flifkart.
Table 4.13 Classification on basis of How comfortable are you with the features of
flifkart.
Ecommerce shopping No. of respondent Percentage %
Very Satisfied 30 30%
Satisfied 40 40%
Neutral 15 15%
Dissatisfied 15 15%
Very dissatisfied 10 10%
Total 100 100%
Graph 4.13 Classification on basis of how comfortable are you with the features of
flifkart.
Satisfaction to Flifkart
10 Very Satisfied
15 30 Satisfied
Neutral
15
dissatisfied
40 Very dissatisfied
Interpretation :-
From the above graph it is interpreted that 30% participants are very satisfied from features
of flifkart, 40% satisfied, 15% Neutral, 15%dissatisfied, 10% very dissatisfied.
Analysis :- The study shows that majority of participants are satisfied from features of
flifkart.
Table 4.14 Classification on basis of e – commerce would get better in the future.
Ecommerce No. of respondent Percentage %
Yes 46 46%
No 25 25%
Maybe 29 29%
Total 100 100%
Graph 4.14 Classification on basis of e – commerce would get better in the future.
Ecommerce in future
50
40
30
46 No. of respondent
20
25 29
10
0
Yes No Maybe
Interpretation :-
From the above graph it is interpreted that 46% participants say yes that ecommerce will be
better in future, 25% no, 29% may be.
Analysis :-
The study shows that majority of participants are think that ecommerce will be better in
future.
Table 4.15 Classification on basis of e – commerce would take place of physical store.
Ecommerce No. of respondent Percentage %
Yes 23 23%
No 46 46%
Maybe 31 31%
Total 100 100%
Physical Store
23
31 Yes
No
Maybe
46
Interpretation :-
From the above graph it is interpreted that 23% participants say yes that ecommerce will
take place of physical stores, 46% no, 31% may be.
Analysis :-
The study shows that majority of participants are think that ecommerce not take place of
physical stores.
Interpretation :- From the above graph it is interpreted that Barrier comes to Purchase
through online shopping.in which 15% participants say Worried about giving credit card
no., 25% Like to see product in personal before buy, 19% Product is expensive due to
access, 5% Net connectivity trouble,31% Wrong/ bad product arrived & could not return,
5%others
Analysis :- The study shows that majority of participants says Wrong/ bad product arrived
& could not return is the Barrier to Purchase through online shopping.
Classification on basis of
4.17) online shopping is better than shopping at store.
Table 4.17 Classification on basis of online shopping is better than shopping at store.
Online shopping is better No. of respondent Percentage %
than shopping at store
Yes 35 35%
No 45 45%
20%
35% Yes
No
Can't say
45%
Interpretation :-
From the above graph it is interpreted that online shopping is better than shopping at store
in which 35% says yes, 45% says no and 20% says can‟t says
Classification on basis of
Analysis :-
The study shows that majority of participants says store shopping is better than shopping
online.
4.18) compare price of Flifkart products with different websites Table 4.18
Classification on basis of compare price of Flifkart products with different websites
Price Comparision No. of respondent Percentage %
Yes 55 55%
No 20 20%
Sometime 25 25%
Price Comparision
25%
Yes
No
55%
Sometime
20%
Interpretation :-
From the above graph it is interpreted that respondents compare price of Flifkart products
with different websites in which 55% respondents says yes, 20% says no and 25% says
sometimes Analysis :-
Classification on basis of
The study shows that majority of participants compare price of Flifkart products with
different websites.
Reason
1%
Interpretation :-
From the above graph it is interpreted that 42% respondents says they choose Flifkart for
shopping due to Variety of Products, 20% says it is Trustworthy, 25% says it have Fast
Service , 12% says it have Easy Return facility, 1% says Other reason
Classification on basis of
Analysis :-
The study shows that majority of participants sats product verity and fast service is the
reason to choose flifkart.
4.20) satisfaction with the service offered by Flifkart Table 4.20 Classification on
basis of satisfaction with the service offered by Flifkart
Satisfaction with service No. of respondent Percentage %
Yes 55 55%
No 20 20%
Somewhat 25 25%
Graph 4.20 Classification on basis of satisfaction with the service offered by Flifkart
25%
Yes
55%
20% No
Somewhat
Interpretation :-
From the above graph it is interpreted that 55% respondents says that they are satisfied
with the service offered by Flifkart, 20% are not satisfied and 25% are somewhat
satisfied.
Classification on basis of
Analysis :-
The study shows that majority of participants are satisfied with the service offerd by
flifkart.
CHAPTER 5
5.1 FINDINGS
❖ It is find that most of participants are male with age group 18-26 years.
❖ It is find that 40% participants are graduate, 50% are post graduate, 7% are under
graduate and 3% are none.
❖ It is find that 45% participants have less than 2 lakh per annum, 35% Rs. 2 lakhs
to 5 lakhs per annum, 10% 5 lakhs to 10 lakhs per annum, 10% More than 10 lakhs
per annum.
❖ It is find that 5% participants have use of Internet once a week, 8% 2 to 3 days a
week, 42% 1 to 2 hrs a day, 45% more than 3 hours.
❖ It is find that 21% participants have use wallet for payment, 46% debit/ credit cards,
33% cash.
❖ It is find that 69% participants are aware about the online shopping, 29% are not
aware about online shopping.
❖ It is find that 20% participants are most likely shop through e-commerce, 40% very
likely, 20% Not likely, 20% never shop online.
❖ It is find that 20% participants are most likely shop through flip kart, 35% Amazon,
15% jabong, 10% snap deal, 20% paytm.
❖ It is find that 35% participants are most likely shop through ecommerce site for
product comparision, 40% For price comparison, 15% Payment option offered,10%
Speed of website.
❖ It is find that most of the participants rated 5 for the discount deals and product
veriety.
❖ It is find that 24% participants are most likely shop clothing through ecommerce
site, 28% mobiles, 10% personal products, 14% laptop and assesories, 3% home
and furniture, 14% books.
❖ It is find that 30% participants are very satisfied from features of ecommerce, 40%
satisfied, 15% Neutral, 15%dissatisfied, 10% very dissatisfied.
❖ It is find that 46% participants say yes that ecommerce will be better in future, 25%
no, 29% may be.
❖ It is find that 23% participants say yes that ecommerce will take place of physical
stores, 46% no, 31% may be.
❖ Barrier comes to Purchase through online shopping. are 15% participants say
Worried about giving credit card no., 25% Like to see product in personal before
buy, 19% Product is expensive due to access, 5% Net connectivity trouble,31%
Wrong/ bad product arrived & could not return, 5%others.
❖ Study shows that 42% respondents says they choose Flifkart for shopping due to
Variety of Products, 20% says it is Trustworthy, 25% says it have Fast Service ,
12% says it have Easy Return facility, 1% says Other reason
❖ It is find that 55% respondents says that they are satisfied with the service offered
by Flifkart, 20% are not satisfied and 25% are somewhat satisfied.
5.2 CONCLUSION
Emerging trends in shopping is shopping through online which has caters all classes of
people. In order to shop online, one must be ableto have access to a computer, a bank
account and a credit / debit card.Online shopping basically provides the customers go
shoppingand purchase goods and services with reasonable price on the internet. From the
study, researchers have also found that the respondents are aware of all the products and
services available in online shopping and also all the facilities offered.
Due to revolution in telecommunication sector no. of users of internet are increased in India
in recent time and customers are using internet for online shopping but still for regular
purchase most of customers first choice is manual shopping. To increase no. of customers
for online shopping there is need of extensive publicity and promotion by online shopping
companies to attract all class of customers Most of the customers are of opinion that
shipping charges charged by companies are very high, it is suggested to companies to either
reduce shipping charges or delivery of product should be given freely. Companies may use
it as one of the promotional activity. After research it is observed that major hurdle behind
development of online shopping is of customer awareness. Majority of customers are not
aware about various pre and post services rend by this online shopping companies.
When a customer purchases a online, he or she is affected by various factors. The main
influencing factors have been identified as Price, Trust ,and Convenience. The Price factor
exists because prices are often lower on Internet stores compared to physical stores due to
lower costs. Purchasing a online can greatly benefit the customer in terms of convenience
and saving money. It is also convenient to shop on various sites with different assortments,
from the home. Trust is evidently needed since the customer must share detailed personal
and financial information when purchasing a online. These types of data include the full
name, delivery address and credit card number for example, which makes Trust an
important factor.
5.3 SUGGESTION
The most important factor that is necessary in growing E-Commerce in India –Trust. If we
Look at the Indian context, I feel that there is a general lack of trust between retailers and
Customers. Customers don‟t trust the retailers because they feel that they are either being
Over charged or that they wouldn‟t be able to get appropriate level of customer service
once The sale is complete.
It is my opinion that this general lack of trust is the primary barrier that is impeding the
growth of E-Commerce within India. Here are some of the practical techniques that online
retailers can employ to improve this level of trust and build an environment where
customers feel safe in clicking that “Proceed to Checkout” button.
Customer Reviews: Customer‟s trust for an online retailer will increase if the retailer
offers an ability to let customers share their positive as well as negative reviews about
products or vendors.
Price Match Guarantee: A Price Match Guarantee (PMG) is a store policy which entitles
a customer to a refund of the difference between the stores‟ asking price and a competitor‟s
price.
Well trained call centre: It is more impotent that the call centre agents be trained to have
Good problem solving skills.
Fraud Protection: Not only should an online retailer ensure that the appropriate security
certificates are setup to handle checkout related transactions.
Real time inventory updates: Retailers must invest in building automated capabilities that
keep an up to date record of how much inventory is available for all their products.
E-Commerce will see a significant growth in India. However, the chasm between the early
Adopters of E-Commerce and the ones who are waiting can only be crossed by building a
Strong level of trust with customers – and winning them, one customer at a time.
BIBLIOGRAPHY
BOOKS:
JOURNALS:
WEBSITES
❖ http://www.iamwire.com/2012/04/india-to-be-the-fastest-growing-e-
commercemarket-in-asia-pacific-market-set-to-grow-to-8-8-billion-by-2016/
❖ http://in.myinfoline.com/forum/reply/2065
❖ http://articles.timesofindia.indiatimes.com/2013-04
26/internet/38842529_1_indian-internet-internet-shopping-internet-penetration ❖
www.zdnet.com/.../india-e-commerce-industry-faces-consolidation-7000...
http://indiaranker.com/websites/ecommerce
APPENDIX I:
QUESTIONNAIRES FOR CUSTOMER RESPONSES
Name of customer…………………………………………………………………
11) Please rate your expectation in a shopping model through flifkart and amazon (1
to 5).
Product variety
12) Tick all the product varieties that you generally prefer buying online through
flifkart and Amazon
Clothing
Personal product ( perfumes, beauty creams)
Healthcare product.
13) How comfortable are you with the features of flifkart and Amazon?(Please rate 1
to 5).
Neutral Dissatisfies
Very dissatisfied
Yes No
Maybe
15) Do you think e – commerce would take place of physical store?
Yes No
Maybe
16) What are the Barrier to Purchase through online shopping?
others
17) Do you feel that online shopping is better than shopping at store?
Yes No Can‟t say
18) Do you compare price of Flifkart and amzon products with different websites?
Yes No Sometime
19) What is the reason to choose Flifkart and amzon for shopping?
Yes No Somewhat