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Our Heritage CUSTOMERS' SATISFACTION IN ONLINE SHOPPING THROUGH

AMAZON .COM: A STUDY WITH SPECIAL REFERENCE TO OTTAPALAM
MUNCIPALITY

Conference Paper · December 2019

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Our Heritage
ISSN: 0474-9030

Vol-68-Issue-21-December-2019

CUSTOMERS’ SATISFACTION IN ONLINE SHOPPING THROUGH

AMAZON .COM: A STUDY WITH SPECIAL REFERENCE TO
OTTAPALAM MUNCIPALITY

Anitha K. M.
Assistant Professor of Commerce,
AMC group of Educational Institutions, Manissery Ottapalam
email: Anithaviswam72@gmail.com
Mob: 8547688509

ABSTRACT

The online shopping system is considered as the backbone of e-commerce and one of its most
crucial aspects. With the advancement of technology, online shopping is the process whereby
consumers directly buy goods, services etc from a seller interactively in real-time without an
intermediary service over the internet. The topic chosen for this particular study is to analyze
the customer satisfaction towards online shopping on Amazon.com .To know about various
aspects of Amazon in market and the effect of factors on the buying behavior of online
customers. It is usually used with smart phones and computers. The online shopping industry
is over a decade old in India. The advent of e-commerce together with the growth of internet
promoted the online shopping system. This paper attempts to study the use of online shopping
among the population of Ottapalam Municipality in Palakkad District. This paper also
examines the factors affecting adoption of online shopping by consumers. An appropriately
designed questionnaire was used to collect the primary data for the study. The data for 200
respondents was organized systematically in tables and graphs and then was subjected to
analysis using appropriate statistical tools. By studying 200 samples it could be concluded
that in order to satisfy themselves consumer perceive many things before buying products
and they will be satisfied if the company meet their expectation.

Keywords: E-commerce, E-marketing, online shopping, customer satisfaction, Amazon.com

INTRODUCTION

Today‟s world is engrossed with digital technology and trends, from daily bread to business,
home to office implementation of electronic gadgets have become the part of life.
Customer satisfaction is a marketing term that measures how products or services supplied by
a company meet or surpass a customer's expectation. Customer satisfaction is important
because it provides marketers and business owners with a metric that they can use to manage

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and improve their businesses. Customer satisfaction is a marketing concept that encompasses
a customer's impression, awareness and/or consciousness about a company or its offerings.
Customer satisfaction is typically affected by advertising, reviews, public relations, social
media, personal experiences and other channels. The study about the costumer satisfaction
towards online shopping will help to analyse the costumer's needs and wants, their
expectancy level through online shopping.

STATEMENTOF THE PROBLEM

In the past few thousand years, the way we shopping have changed a lot. Analysis of
Customer satisfaction towards online shopping on Amazon.com, basically it is important to
investigate the motivation behind consumer purchase but it is equally important to find us
how the consumers form satisfaction and behaviours towards online buying because
consumer satisfaction towards purchasing online is a conspicuous factor affecting actual
buying behaviour. One of their searches is to work on factors that influence customers to buy
online, and have decided to study four factors such as convenience, time saving, Website
features, and security. And along with this the study for out of stock on highly discounted
items also will be done. However, customer‟s willingness stop purchase online could be
affected by one‟s individual needs and these needs can be „Need for cognition‟. Taking these
aspects into account a survey is conducted to know the satisfaction towards online shopping
(Amazon.com)

OBJECTIVES OF THE STUDY

1. To analyse the customer satisfaction towards online shopping with reference to

Amazon.com

To discover the key factors that influence online buying behaviour of consumers in India

2. To discover the key factors that influence online buying behaviour of consumers in
ottapalam.

3. To identify who are the online shoppers.

4. To understand the customer awareness on Amazon.com.

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HYPOTHESES OF THE STUDY

H0: There is no significant difference in customer satisfaction among male and female users.
H1: There is significant difference in customer satisfaction among male and female users.

RESEARCH METHODOLOGY

Research Design: The study uses Descriptive and Analytical research design.

Source of Data: The study is based on primary data collected from Amazon users.

Sampling Unit: The sampling units are various users of Amazon from Ottapalam
Municipality.

Sampling Technique: Convenience sampling is used to select samples for data collection.

Sample Size: 200 respondents.

Data Collection Technique: A questionnaire was developed with the help of literature
review and Scheduling was done to collect data.

REVIEW OF LITERATURE

1. Dr. A.B Santhi (2017) has conducted a study in Thiruppathi town to understand the
consumers‟ satisfaction towards online shopping. The main purpose of the study was to find
out various demographic factors affecting consumer‟s satisfaction with respect to online
shopping in India and also descriptive research. For this study, data was collected from 150
smart phone users by the use of structured questionnaire. The study used quantitative method
“ANOVA” in order to get statistic results from respondents. The major findings were that,
people use online shopping due to its ease of use and convenience in buying products online,
and are satisfied with the services provided to them.

2. Orbit-biz-dictum (2016) conducted studies on behaviour of consumers towards online

shopping has analyzed about the factors influencing people in online shopping is convenience
followed by time saving and price. In this study, a structured questionnaire was prepared to
collect data from 200 respondents and the data was analyzed by using “ANOVA‟ method.

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The main finding of the study was that the Flip kart is the most favorite shopping site of the
respondent as its features like brand loyalty, safety and security etc. much satisfies the users.

3. Durgesh Agnithotri (2015) has conducted a study on customer preference and attitude
towards E-floor with special reference to Kanpur. The purpose of the study was to find out
the parameters through which a customer prefers on online shopping website and to analyze
the problems faced by customers if any. For this, both primary data and secondary data were
used. ONE WAY ANNOVA to check the homogeneity of variance between the assumptions
made and they found out that E-floor are preferred because of authenticity or variety , after
sales service ,better sale service and reachability.

4. Dr.M.Rafiya and Meera (2017) conducted an “Empirical study about the preference of
customers towards online shopping applications in the market”. This paper is focusing upon
the factors influence the users to buy through shopping application that is getting popular all
over the world. The author in this research paper is trying to explore all the possibilities of
getting information on the awareness and usage of online shopping system among youth of
India. A questionnaire was provided to the respondents of age group 26-35 years to collect
data. The findings reveal that the customers are satisfied by the Flip Kart shopping
application and most of the respondents prefer online shopping for the wide choice of goods.

5 Shun &Yunjie (2006) in their study showed that there are product types, which are more
likely to be sold online such as software, books, electronics and music. Reason for this is that
when purchasing these types of products, one does not require personal inspection and most,
if not all features, can be outlined in the product description and images. Most products in the
mobile phone family belong to this category. This paper tries to find answer for certain
queries related to operational procedure of online shopping. For this purpose, conceptual
based and descriptive research methodology was used. The study was conducted in Chennai
city. The findings indicate that the impact of demonetization has resulted in wide usage
online shopping.

LIMITATIONS OF THE STUDY

1. Sample size used for the study is small.

2. Consumer‟s perception changes from time to time with the advancement in the technology.

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ANALYSIS AND INTERPRETATION

An appropriately designed questionnaire was used to collect the primary data for the study.
The data for 200 respondents was organized systematically in tables and graphs and then was
subjected to analysis using appropriate statistical tools. The results of the analysis are
presented in the following section in order to assess the customer satisfaction towards online
shopping on Amazon.com in India. Here for analyzing, we are considering the demographical
and behavioral factors.

Table 1: showing Demographical factors affecting online shopping through Amazon

Demographical factors Frequency Percentage

Male 119 59.5
Gender
Female 81 40.5

Below 30 45 22.5
30-40 73 36.5
Age-Group
40-50 52 26.0

Above 50 30 15.0

High school 65 32.5

Diploma 26 13.0
Educational status
Graduation 94 47.0

Post graduation and Above 15 7.5

single 104 52.0

Marital Status
family 96 48.0

Income High income 63 31.5

Medium income 108 54.0

Low income 29 14.5

Source: Primary Data

Majority of the respondents surveyed are male customers (59.5%) and the age group more
preferring online shopping is 30-40(36.5%). Classification by education level indicates that

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majority of the respondents are the highest education level of bachelor (47%). Most of the
respondents from medium income groups (54%) and unmarried customers (52%).

REASONS FOR USING ONLINE SHOPPING SERVICES

The below table indicates the reasons for using online shopping. For this, mean rank was
calculated for each variable using the following formula.

Mean Rank = Sum of rank/ sample size

Table 2: showing reasons for using online shopping services

Reasons Mean Rank

Product details 1.917

Availability 2.633

Ease of use 2.717

Convenience 3.833

Social media 4.517

Time saving 5.833

Source: Primary Data

Time saving is the main reason for start using online shopping by the customers.
Convenience and Social media come the next reason for using online shopping Customers
also consider ease of use and availability of the product respectively. Product details used is
also taken in to consideration while using online shopping.

REASONS FOR CHOOSING AMAZON ONLINE SHOPPING

Table 3: showing Reasons for choosing Amazon online shopping

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Reasons Number of respondents Percentage

easy and convenient 124 62

Less price 102 51

Quality product 66 33

Fast delivery 90 45

Discount and offer 78 39

Wide choices 54 27

Best package 72 36

Different modes of payment 44 22

Transaction security 86 43

Exchange policy 64 32

Source: Primary Data

The table shows the Reasons for choosing Amazon online shopping among the users. A
major portion of the respondents (62%) are choosing Amazon online shopping due to easy
and convenient and less price(51%). 45% of the respondents due to fast delivery followed by
Transaction security (43%). 39% of them are choosing due to Discount and offer . Best
package (36%), Quality product (33%), Wide choices (27%), and Different modes of
payment (22%), are the next reasons the users surveyed.

SATISFACTION OF USERS TOWARDS THE USAGE OF AMAZON ONLINE

SHOPPING

The table depicts the satisfaction level of users towards various features of Amazon online
shopping. For this, five point linker scales is used and the following variables were identified:
1. Easy and convenient usage . 2. Instant payments. 3. Easier and faster online shopping
4.Less transactions cost. 5. Secure and confidential transactions. 6. Discounts offered.
7.Benefit transferring.

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The responses are scored as 1 for „Strongly Disagree‟, 2 for „Disagree‟, 3 for „Neutral‟, 4 for
„Agree‟ and 5 for „Strongly Agree‟. The total score of 7 statements for 200 respondents is
found out. Based on these score, Mean percentile Score was calculated for each statement.

Table4: showing the Satisfaction of users towards the usage of Amazon online shopping

Customer satisfaction
Factors contributing to satisfaction
(Mean percentile Score)

Easy and convenient usage 92

Instant payments 83.67

Easier and faster online shopping 82.33

Less transactions cost 76.77

Secure and confidential transactions 73.33

Discounts offered 72.67

Benefit transferring 71.67

Source: Primary Data

Out of 200 respondents, 92% feel that it is very easy and convenient in using Amazon
online shopping. 76.77% users feel that transaction costs are less. They are satisfied with the
discounts offered (72.67%) and facility of transferring benefits (71.67%) to their friends and
relatives.73.33% respondents think that secured and confidential transactions are made
through e-wallet and also instant payments (83.67%) are possible. Majority (82.33%) of them
are satisfied with the faster online facility provided by the online shopping of Amazon
providers.

OBSTACLES FACED WHILE USING AMAZON ONLINE SHOPPING

Table 5: showing Obstacles faced while using Amazon online shopping

Obstacles faced Mean percentile Score

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Quality difference 53.67

Delivery point is not available 53.3

High delivery charges 43.67

Can‟t touch and seen 43.67

Receiving wrong product 41

Source: Primary Data

53.67% of the respondents have come across the problem of Quality difference while using
online shopping and Delivery point is not available in certain places. High delivery charges
and can‟t touch and seen are also faced by some respondents (43.67%). 41% users face the
problem of receiving wrong product.

TESTING OF HYPOTHESES

H0: There is no significant difference in customer satisfaction among male and female users.

H1: There is significant difference in customer satisfaction among male and female users.

The hypothesis is tested with t-test. The t value so calculated is -0.257 and table value is 1.96.
Since the table value is greater than calculated value. The null hypothesis is accepted.

H0: There is no significant difference in problems faced while using online shopping among
male and female users.

H1: There is significant difference in problems faced while using online shopping among
male and female users.

The validity of hypothesis is tested with t-test. The t value so calculated is –1.7326 and table
value is 1.96. Since the table value is greater than calculated value. The null hypothesis is
accepted.

FINDINGS

1. There is not much difference in gender for using online shopping.

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2. Frequency of purchase for electronics, books and music, apparels and accessories are
more in Amazon.

3. Highly discounted products got out of stock quickly, since customers purchased it as
soon as they could when they see high discount on good featured product.

4. The services provided by Amazon are good and still developing to attract more
customers and hold the current customer.
5. Digital marketing techniques like search engine marketing, links providing other
website and advertisement also functioned well for promotion of this website.
6. Fast delivery is one of best service Amazon is providing.
7. Frequency of purchase for electronics, books and music, apparels and accessories are
more in Amazon.
8. Different payment options available in Amazon made customers more satisfied and
comfort for paying while purchasing product.
9. Customers feeling more secured when purchasing through Amazon because of
different policies (replacement and return policy) and services they have.
10. In comparison with competitors, Amazon is charging free shipping for the purchase of
499 plus rupees.

11. Most of customers have good experience with Amazon while purchasing products.
12. Most of them are satisfied with the services of Amazon and so that they succeed in
retaining the customers.
13. Advertising is an important way to have the brand and products familiar to
consumers.
14. Convenience and time saving are two important factors that customer looking for
while purchasing through online.
15. There is significance for the features and services that Amazon is providing and the
customer satisfaction.

SUGGESTIONS

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1. Amazon has successfully placed itself into the prospects mind making it the in
world‟s largest online store with huge range of products. And, yet still it is on the way
of expansion.
2. Delivery services can be improved mainly by minimising delay in delivery.
3. Out of stock items can made available as soon as possible and intimate the needed
customers.
4. Critical mass of Internet users – Internet users in India is increasing at increasing rate,
so Amazon can target more & more cities i.e. not only tier 1 & 2 but also tier 3 & 4
cities, which will help generate stronger customer base & more revenues.
5. Should clearing focus on the Growing Online Apparel business & it can diversify into
apparel category either organically or inorganically by acquiring other portals.
6. User Experience: Portal should continuously aim to work to improve the user
experience by adding more & more innovative features in the website like virtually
shopping basket, virtual trial rooms. In this competitive world to differentiate via user
experience, the ultimate winner will be the Indian online consumer.
7. Logistics & Supply Chain: can continuously aim to reduce the delivery time cycle.
8. Should comprehensively invest into E-CRM & online reputation management

CONCLUSION

The thorough study is based on the consumer behaviour analysis which serves a great idea
regarding consumer perception when they go for online shopping. In order to satisfy
themselves consumer perceive many things before buying products and they will be satisfied
if the company meet their expectation.

The Overall Brand Value of Amazon is better than any other E-commerce site. Amazon is
now dominating in the world of online shopping at global level. Though, Amazon is leading
in the market they are trying to improve their service and reach to further parts of the world
where at the moment they have no access. E-commerce sites help in building a new
generation of mark (we can say futuristic) which changed the way of markets from physical
to online or digital, which is amazing .it not only saves time, but also provide option to the
consumer. Amazon is not only popular in the market world but also popular in technological
world. Amazon eco, which looks like a speaker but can perform more than as speaker. It is

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speaker with build in AI software (Alexia) which is capable of performing tasks on

command. This could be a fantasy, a few years back. This shows how fast Amazon is
developing. Amazon focuses on consumers and built amazing experiences for the customers.

REFERENCES

 Assael, Henry. (1984.) “Behavior and Market Action”. Boston, Massachusetts: Kent
Publishing Company,
 Belch, G.E., & Belch, M.A. (2001). Advertising and Promotion: An integrated
Marketing Communications Perspective (5th edition.). Boston: Irwin/McGraw- Hill.
 Cooper, Donald R. and Schindler, Pamela S. (1999), Business Research Methods, 6
Tata McGraw-Hill Publishing Company Limited, New Delhi, India.
 Creswell, J. W. (2003). “Research Design: Qualitative, Quantitative, and Mixed
Methods Approaches”. Thousand Oaks, CA, Sage.
 Easterby-Smith, M., Thorpe, R. & Lowe, A. (2002), Management Research 2nd
edition, London: Sage.
JOURNELS AND MAGAZINES:
 Arnould, E.J. and Wallendorf, M. “Market-oriented Ethnography: Interpretation
Building and Marketing Strategy Formulation,” Journal of Marketing Research, Vol.
31 (November 1994), pp. 484–504.
 ANALYSIS OF CONSUMER BEHAVIOUR ONLINE
Author: DejanPetrovic

WEBSITES:

 www.Amazon.com
 www.statista.com
 www.scrapehero.com
 en.wikipedia.org
 en.kioskea.net
 www.ecommerce-land.com
 www.commodityindia.com

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