A

PROJECT REPORT

ON

“CONSUMER BEHAVIOR IN FLIPKART”

Submitted To

(University Name)

BY

(STUDENT NAME)

(Stream) (Semester)

(Roll No)

(Batch no.)

(UNIVERSITY LOGO)

(UNIVERSITY NAME),

(UNIVERSITY ADDRESS)
 DECLARATION

The training project report titled "Consumer Behaviour towards Digital

Marketing at Flipkart" was completed solely via my efforts, under the
direction of ______________________.

I further certify that this work has not been published or submitted to any
other school for the purpose of awarding any other degree or diploma as a
result of its completion.

Name - _______________________
Roll No.- _____________________

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 CERTIFICATE

This is to certify that _______________________, a student of MBA

(Jaipur National University, Jaipur) has successfully completed
_______________ long internship programme at Flipkart. During the
period of his internship programme with us he was found punctual,
hardworking.

We wish him the best of luck in his future efforts.

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 ACKNOWLEDGEMENT

It gives me great pleasure to convey my appreciation to everyone who

has given of their valuable time, energy, and views to supply me with
all of the essential information and ideas that have helped me in
completing this project.

In the name of our whole team, as well as our responders and friends
who all had a part in the successful completion of my project, please
accept my sincere gratitude on our behalf.

Name - _______________________
Roll No.- ____________________

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 INDEX

1. INTRODUCTION................................................................6
1.1 INTERNET USAGE IN INDIA
1.2 RETAILING
1.3 INTRODUCTION TO ONLINE SHOPPING
1.4 INRODUCTION TO E-COMMERCE
1.5 INDUSTRY PROFILE
1.6 COMPANY PROFILE
1.7 OBJECTIVE AND SCOPE OF THE STUDY
1.8 LIMITATIONS OF THE STUDY
2. REVIEW OF LITERATURE...........................................67
3. RESEARCHMETHODOLOGY......................................70
3.1 RESEARCH DESIGN
3.2 PRIMARY DATA
3.3 SECONDARY DATA
3.4 DATA COLLECTION
3.4 1SAMPLE DESIGN
4. DATA ANALYSIS AND INTERPTATION....................75
4.1 DATA ANALYSIS AND INTERPTATION
4.2 FINDING
5. CONCLUSIONS..............................................................101
6. BIBLIOGRAPHY AND WEBSIDES.............................105

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 1.
INTRODUCTION

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 INTRODUCTION

The Internet, as a means of conducting business for both businesses

and individuals, has become one of the most extensively utilised non-
stores ‘formats' in recent years. Companies of all sizes, both new and
old, are developing websites in response to popular trends and requests
that the Internet be used as a tool to enhance profit margins. Retailers
benefit from having a web site since it is both informative and
transactional in nature, and it can be used for a variety of purposes
including advertising and direct marketing; sales; customer service; and
public relations. It has been more than a decade since the first instance
of business-to-consumer E-commerce took place. Scholars and
practitioners in the field of electronic commerce are continuously
striving to obtain a better understanding of customer behavior in the
internet environment.

The internet is altering the way people search for and purchase
products and services, and it is quickly becoming a worldwide
phenomenon that affects everyone. The Internet has been used by many
businesses with the goal of decreasing marketing expenses and, as a
result, lowering the prices of their products and services in order to
maintain a competitive advantage in highly competitive marketplaces.
Aside from this, businesses utilise the Internet to transmit,
communicate, and distribute information; sell their products; solicit
consumer feedback; and perform customer satisfaction surveys with
their customers. In addition to purchasing products online, customers
utilise the Internet to evaluate pricing, product characteristics, and
after-sale support facilities that they will receive if they purchase the

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product from a specific retailer. In general, internet business
professionals are positive about the future of the industry.

It is the concept or image of a certain product or service that customers

associate with the company that owns the idea or image by recognising
the name, logo, slogan, or design that the firm uses to promote the idea
or image. In marketing, branding is the process of marketing a concept
or image such that it is recognised and associated with a certain service
or product over time, even when there are many other firms delivering
the same service or product as the one being promoted. When
advertising experts work on brand awareness, they are also working on
excellent reputations and establishing a set of standards that the firm
should try to maintain or exceed in the future. Branding is a critical
component of Internet commerce because it helps businesses to
establish and maintain their reputations while also expanding beyond
the initial product and service and contributing to the income produced
by the original brand. Originally used to distinguish one person's cattle
from another's by the application of a distinctive sign burnt into the
animal's skin with a hot iron stamp, branding has now spread to other
fields such as commerce, marketing, and advertising.

An important marketing term is customer perception, which comprises

a consumer's impression, awareness, and/or consciousness about a firm
or its products or services. Advertising, reviews, public relations, social
media, personal experiences, and other outlets are all known to have an
impact on how customers perceive a brand.

Specifically, consumer behaviour refers to the study of individual

consumers, groups of consumers, or organisations and the processes
they employ in order to select and secure products, services,

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experiences, or ideas to meet their needs, as well as the consequences
of these processes for consumers and society as a whole.

It draws on psychological, sociological, social anthropological, and

economic theories to create a cohesive whole. It makes an attempt to
comprehend the decision-making processes of purchasers, both
individually and as a group. Consumer factors such as demographics
and behavioural variables are investigated in an effort to better
understand what people desire. It also attempts to analyse the effect of
various groups on the consumer, including family, friends, reference
groups, and society as a whole.

In order to do customer behaviour research, it is necessary to examine

consumer purchasing behaviour, with the customer taking on the three
different roles of user, payer, and buyer. Consumer behaviour, even for
specialists in the area, has been found to be difficult to anticipate,
according to research. Because of its keen interest in the re-discovery
of the true meaning of marketing, relationship marketing is a valuable
asset for customer behaviour analysis. This is because it is concerned
with the re-affirmation of the importance of the customer or buyer,
which is a key component of relationship marketing. Consumer
retention, customer relationship management, personalization,
customization, and one-to-one marketing are all being given more
attention in the current environment. Social functions may be divided
into two categories: social choice functions and welfare functions.

The ultimate objective of most firms is to grow their sales and profits
as much as possible. In an ideal situation, you want to attract new
clients to your items while also encouraging them to make recurring
purchases. The level of awareness that consumers and potential
customers have of your company and its goods is referred to as brand

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awareness. It is the extent to which a brand is recognised by potential
consumers and is appropriately linked with a particular product that is
measured by brand awareness. Brand awareness, which is often
expressed as a percentage of the target market, is the primary aim of
advertising during the first few months or years after a product is
introduced.

Brand awareness is the degree to which a customer identifies a certain

brand with a particular product that he or she wishes to purchase. It is
the recall and recognition of a company's brand by its target audience
that is measured. When asked about a brand or shown an image of the
brand logo, brand recall is the ability of the consumer to recall the
brand in relation to the product, whereas brand recognition is the
potential of the consumer to recall previous knowledge of the brand
when asked about the brand or shown an image of the brand logo.
Brand awareness is a critical component of brand development because
it allows the brand to differentiate itself from the competition in this
monopolistically competitive environment.
Digital marketing is the promotion of products and services via the use
of digital distribution methods that are timely, relevant, personal, and
cost-effective in their delivery to customers. In general, digital
channels can be divided into several different categories, including the
internet, mobile devices, digital outdoor advertising, and any other kind
of interactive digital media. Each category contains a number of digital
tools/sub-channels that may be used to help digital marketing efforts.
These are some examples:

Online advertising includes:

 Banner advertisements in emails, dedicated websites, pop-up
ads, sponsored content, paid keyword search, podcasts, and other
forms of media. Social networks, blogs, wikis, widgets, virtual

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 words, online gaming, and other newer outlets are examples of
this.

• Mobile – SMS, MMS, mobile Web, mobile application, and mobile

video are all options available.

• Digital outdoor advertising - still images, video digital display, and

interactive kiosks; and

• Interactive digital media - interactive television channels are an

example of interactive digital medium.

It is possible to utilise any combination of the channels listed above to

achieve maximum visibility with the greatest possible impact among
targeted consumers, resulting in the generation of additional business at
a fair cost. While digital channels provide marketers with a significant
edge in terms of their broad reach, maximising their potential demands
the proper management of numerous channels with a variety of
complicated variables in order to get the greatest possible return on
investment.

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1.1 INTERNET USAGE IN INDIA

According to the Internet in India study, India's internet user base has
surpassed 100 million, which represents less than 10% of the country's
total population. Until 2007-08, India's internet user base grew at a
glacial pace, but growth has accelerated dramatically since then.
Graph 1.1: Internet usage in yearly basis

With about 150 million Internet users, India has surpassed China (with
575 million) and the United States to become the third biggest Internet
population in the world (at 275m). In India, with a total population of
150 million Internet users, Internet penetration remains at 12 percent,
compared to 43 percent in China and 80 percent in the United States.
However, because of the low penetration, India offers an unrivalled
development opportunity for the Internet business in the next years.
From 2013 to 2018, we believe that India will experience a golden
period in the Internet sector, with incredible growth opportunities and
secular growth adoption for E-Commerce, Internet advertising, social
media, search engine optimization (SEO), online content, and services
related to E-Commerce and Internet advertising.

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Here is the Internet forecast for India in 2013, the first year of the
golden age.

• Internet penetration will reach 15% by the end of the year. In 2013,
India is expected to gain 30 million new Internet users, bringing the
overall number of Internet users in the country to 180 million. This
indicates a 20 percent increase in the number of people who use the
Internet.

• The amount of time spent online will increase, and it will eventually
become equivalent to that spent in the United States and China.
According to study estimates, an average Internet user in India spends
13 hours per week on the internet, and this number is expected to rise
to 16 hours per week in the near future. The additional time spent
online will be mostly devoted to social media, photo/video sharing, E-
Commerce, and utility/bank/bill paying activities, among other things.

• The number of mobile Internet users will surpass 100 million. India
has approximately 950 million mobile users, with close to 50 million,
or less than 6%, of these mobile customers accessing the Internet using
mobile devices, according to the latest figures. According to estimates,
mobile Internet penetration would increase from about 6 percent to 10
percent in 2013, and India's mobile Internet population might more
than double in 2013, reaching 100 million projected mobile Internet
users by the end of the year 2013.

• Internet usage will most certainly increase at a quicker rate among

females and those who work from home. So far, Internet usage in India
has been highly skewed toward the male gender and away from places
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of employment and educational institutions. In 2013, female Internet
usage will rise at a significantly higher rate than male Internet usage,
particularly via home access. This acceleration will most likely occur
as a result of the general increase in Internet use among the general
public.

• E-commerce sales are expected to reach $900 million in 2013.

According to estimations, India E-Commerce generated $550 million
in gross revenue in 2012, and we anticipate that E-Commerce would
generate $900 million in gross revenue by the end of the year 2013.

• Emerging cities will account for the vast majority of E-Commerce

growth. We estimate that while the top 8 cities in India will continue to
account for 45 to 65 percent of overall E-Commerce for various E-
Commerce businesses in 2013, it will be the developing cities that will
have the greatest growth delta in E-Commerce. Emerging cities in
India are defined as those that are not among the Top-40 cities in the
country, such as Bhatinda in Punjab or Kota in Rajasthan.

 Online advertising is expected to be the fastest-growing segment of

the Indian Internet market in the next years. According to projections,
India's Internet advertising earned $300 million in income in 2012 and
is expected to quadruple in 2013, reaching $600 million in revenue.
Consider that the expansion of social media, mobile Internet, and non-
search and content driven online ad formats like lead generation,
affiliate marketing, and email marketing, among others, will result in
significant growth in Internet advertising revenues in the future as well.

• The funding climate for Internet start-ups will continue to be tough in

2013. - In India, the funding climate for Internet start-ups is expected to
remain tough in 2013. In the previous 17 years, India's Internet market
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value has grown by less than $5 billion, compared to the $600 billion
generated by the US Internet industry and the $250 billion generated by
the Chinese Internet sector. A large number of Internet firms must
grow in size in order for the funding climate to become more relaxed.

• The rise of innovative business models and the consolidation of the e-

commerce industry are both likely. E-Commerce businesses that are
concentrating on basic concerns will most likely cause significant
disruption in the E-Commerce sector in 2013. On the one hand,
fundamental issues are the challenges that are important for enhancing
customer experiences and the condition of the ecosystem; on the other
hand, concentrating on the foundations of business rather than just
throwing money at the problem will become extremely vital in the
future. The vast majority of inventory-driven E-Commerce business
models will most likely combine with one another or assume a narrow
vertical position in the future.

• The expansion of the start-up culture and environment will be

accelerated. In our opinion, the start-up culture and ecosystem are
becoming more widely accepted and prevalent. The seed and angel
rounds are no longer restricted to Mumbai, Delhi, or Bangalore, and the
creation of start-ups is no longer restricted to IITs or major cities, as it
was previously. While India still has a long way to go before it can
claim to have a real Silicon Valley start-up culture, environment, and
support structure, the country is moving in the right direction. Finding
or becoming an angel investor is no longer unusual after graduation, as
is quitting a lucrative corporate position to work for a start-up, or
finding or becoming an employee of a start-up. The Internet funding
climate is expected to be tough in 2013, but the overall Internet start-up
ecosystem will grow stronger and more widespread.

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1.2 RETAILING

Sales of products and some services to the general public are referred
to as retailing. Retailing has been around for several thousand years.
Retail sales are those activities that are concerned with the sale of
products to final customers for personal or home use. Retail businesses
face intense competition, and the failure rate of retail enterprises is
higher than that of other businesses. However, other criteria such as the
accessibility of the site, the selection and display of products, the
beauty of the institution, and the reputation of the establishment all
have a role in the level of competition. The variety of retailing formats
available today, including vending machines, door-to-door and
telephone sales, direct-mail marketing, the Internet, discount stores,
specialty stores, department stores, supermarkets, and consumer
cooperatives, demonstrates the industry's growing diversity and
adaptability.

What matters is that the essence of excellent retailing stays the same,
regardless of its form: appealing, relevant products presented for sale in
an attractive, eye-catching manner at a fair price at an accessible
location.

In most cases, it entails the sale of individual units or small lots to large
numbers of consumers through a firm that has been established
specifically for that purpose. Retailing, in its widest meaning, may be
traced back to the first time a valuable object was exchanged for
another of equal or lesser worth. Shopping, in the more restricted sense
of a specialised, full-time commercial activity, has been around for

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many thousand years, dating back to the period when peddlers first
began selling their products and the establishment of the first markets.

While retailing is very competitive, the death rate of retail

establishments is quite high when compared to the mortality rate of
most other businesses. Prices are the primary source of competition,
but non-price forms of competition such as the convenience of
location, the selection and display of merchandise, the attractiveness of
the retail establishment itself, and intangible factors such as the
retailer's reputation in the community help to moderate this. As a result
of intense competition for customers, conventional product categories
in retailing are becoming increasingly blurred, and many businesses
now provide a far larger range of products than their fundamental
classification would suggest (e.g., drugstores may carry food, clothing,
office supplies, hardware, etc.).

Terms Defined:
Vending Machine- a coin-operated machine for selling small articles,
beverages, etc.
Direct-mail marketing- reaching the desired clients using print ads in a
form of leaflets, e-mails.
Discount houses- retail store that offers merchandise for sale at lower
prices than conventional stores that sell merchandise at list prices or
suggested retail prices;
Specialty stores- are small stores which specialise in a specific range of
merchandise and related items.

1.3 INTRODUCTION TO ONLINE SHOPPING

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Online shopping is the process by which consumers directly purchase
goods, services, and other items from a seller interactively in real time
through the internet, without the need of an intermediate provider.
Online shopping refers to the process of purchasing goods and services
from merchants that offer their products and services on the Internet.
Because of the widespread use of the World Wide Web, retailers have
attempted to offer their goods to those who use the Internet to browse.
Shoppers may browse web retailers from the comfort of their own
homes and complete their purchases while seated in front of a
computer screen. Consumers purchase a wide range of products from
online retailers. Individuals may, in fact, acquire almost anything from
firms who sell their items on the internet. Books, apparel, home
appliances, toys, hardware, software, and health insurance are just a
few of the hundreds of goods that may be purchased from an internet
store by the general public.

Because of the ease of buying online, many individuals prefer to do

their shopping this way. Suppose someone wants to go shopping at a
physical and mortar location. He must drive to the location, find a
parking spot, and then wander around the store until he finds what he is
looking for, which may take several minutes. After locating the goods,
she wants to purchase, she may have to wait in long lines at the pay
register, which she may find frustrating.

Despite the ease of internet shopping, not everyone like to purchase

goods and services from the comfort of their own homes. The concept
of physically visiting a store and participating in the purchasing process
appeals to certain individuals. They enjoy interacting with the products,
trying on clothes, and being among a group of people. Online
purchasing does not allow customers to connect with the items or

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engage in any social contact. It also prevents customers from taking the
goods home with them on the same day that they purchase it.

On-line shopping allows you to browse through an infinite number of

options and even purchase stuff that is not available in shops. If
someone is seeking for a specialised product that may not be available
in their local area, they will almost certainly discover what they are
looking for online. However, the opportunity to compare goods,
whether they are comparable or not, online is much more beneficial.
He has the ability to browse through many retailers at the same time,
evaluating material quality, sizes, and pricing all at the same time,
saving time.

It is no longer necessary to search through a store's items while

carrying possible purchases such as jeans, shirts, belts, and shoes all in
one arm while shopping on the internet instead. Aside from eliminating
the annoying yet catchy music, online shopping also eliminates the
hundreds, if not thousands, of other people who appear to have made
the same decision as you and opted to shop on the same day as you.

Online purchasing transactions are completed immediately, allowing

you to do other chores while saving time. Apart from that, unlike in a
store, pleasant customer service personnel are accessible 24 hours a
day, seven days per week to assist you with finding, purchasing, and
delivering your products finally.

1.3.1 Factors influencing consumer to shop online

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Despite the fact that there are numerous factors that influence
consumers to shop online, there are primarily four factors that
influence consumers to shop online after reading literature in the field
on consumer attitudes towards online shopping, and these factors are
discussed in more detail below in the following section.

 Convenience
The convenience factor relates to how easy it is to browse or search for
information on the internet, as opposed to traditional retail purchasing.
Consumers may quickly browse product catalogues online, but if a
customer searches for the same product or item in a traditional store
manually, it is difficult and time-consuming to visit the store physically
and on the phone. Convenience has always been a major element in
influencing customers' decisions to purchase online. According to
Robinson, Riley, Rettie, and Wilsonz (2007), the most compelling
reason for online shopping is the convenience of being able to buy at
any time of day or night and having bundles of things delivered to one's
doorstep.

According to Rohm and Swaminathan (2004)'s (2004) "typology of

online consumers," shoppers may be divided into four categories:
convenience shoppers, balanced purchasers, variety seekers, and store-
oriented shoppers, depending on their current buying motive.
Consumers can quickly compare prices while making an online
purchase as opposed to making a traditional buy. As a result, price
comparison is another another convenience element associated with
internet purchasing.

 Time saving

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One of the most important reasons influencing the decision to purchase
online is the time savings. Time and patience may be saved by
browsing or searching an online catalogue. Shopping online allows
people to save time and effort while still getting what they want. One
probable explanation is that internet shopping saves time during the
buying of products and it can reduce the travel time necessary to visit a
traditional store, both of which are beneficial. Some respondents, on
the other hand, believe that the time required for delivery of products
or services while buying online is also a consideration.

According to Corbett (2001), unexpectedly, time savings is not a

driving factor for customers to buy online, owing to the time it takes to
receive products or have them delivered. A person residing in Florida
can shop at Harod's in London (through the internet) in less time than it
takes to visit the local Burdines department store, for example. The
time saving aspect can be seen in a variety of ways, for example: It is
therefore impossible to overlook the relevance of the time-saving
element as a driving force for internet shopping. Additionally,
Goldsmith and Bridges (2000) point out that there is a distinction
between online shoppers and non-online shoppers; online shoppers are
more concerned with convenience, time savings, and selection,
whereas non-online shoppers are more concerned with security,
privacy, and on-time delivery, according to the authors.

 Website design/features
One of the most important variables impacting online purchasing is the
design of the website and the activity of online shoppers. When it
comes to website design, website reliability and fulfilment, website
customer service, as well as website security and privacy are the most
appealing characteristics that impact the perspective of the consumer
when it comes to online shopping. Shergill and Chen are two of the
most well-known names in the field of computer science (2005).
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According to Kamariah and Salwani (2005), the higher the quality of a
website, the greater the likelihood that a consumer will purchase on the
internet. According to Liang and Lai, the quality of web design has a
significant influence on the choice of electronic retailers made by
consumers (2000). The design of a website is one of the most essential
factors in persuading people to purchase online.

Website design elements may be viewed as a motivating factor, since

they can elicit either good or negative sentiments in visitors when they
interact with a website. If a website is created with high-quality
features, it can assist clients through successful transactions while also
attracting them to return to the website again and again. Poor-quality
website features, on the other hand, might make online buying more
difficult. According to Liang and Lai (2000), the quality of web design
or the features of a website have a direct influence on a user's decision
to purchase online.

 Security
Another important element that influences customers' decision to
purchase online is security. Many internet users, however, shun online
purchasing due to concerns about credit card theft, privacy concerns,
non-delivery risk, post-purchase service, and other issues. However,
the issue of transaction security in online purchasing has garnered some
attention. Transactions involving money and credit card information
that are safe and secure build confidence while decreasing transaction
risk. UK debuted fraud-free electronic shopping in 1995, and later on,
Europe and Singapore followed suit with safe electronic transactions
(SET). According to Bhatnagar and Ghose (2004), security is one of
the characteristics that prevents people from shopping online because
they are concerned about the security of their sensitive information.
They claim that there is a large segment of internet shoppers who do

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not like to shop online because they are concerned about the security of
their sensitive information.

1.3.2 Online shopping in India

Online shopping is much more prevalent in the developed world now

than it was around 5 years ago, but it is not the same in India for a
variety of reasons that are unique to India. Consumers in developed
nations consider the internet to be an excellent location for bargain
hunting, with the majority of items accessible at cheaper costs than
they would find in a brick-and-mortar store. However, according to
studies, convenience appears to be an even greater draw than price,
since most online buyers found the congested high street to be too
stressful to purchase on.

Even while online shopping has seen significant development in India,

it is still not as widespread as it is in the West, and the expansion has
been restricted to specific areas such as online trip booking and maybe
stock trading (which actually is not pure e-commerce). The primary
reason why Indian consumers are hesitant to spend online is because
they do not receive any genuine value or reward for their purchases.
Additionally, they are concerned about fraud, shipping, and customer
service, and these concerns are not unfounded.

Online shopping sites in India provide a diverse selection of items from

which to choose based on your preferences and financial constraints.
Shopping online in India always provides a pricing advantage because
online retailers do not have to incur the costs of constructing and
maintaining storefronts. In addition, substantial discounts are provided
on a variety of popular items in order to lure buyers from around the
world to a single location. As part of their unique deals, several online
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shopping India websites also include online coupons, gift certificates,
and promotional codes, which allow customers to save a significant
amount of money on their purchases. Because a wide range of goods
are organised in a very comfortable manner, online shopping in India is
simple and quick. You can easily discover the precise thing you want
because a broad variety of products are organised in a very handy
manner.

One of the most significant advantages of online stores is that they

provide comprehensive and specific information about each and every
product they sell, including product descriptions, specifications, model
numbers, sizes, colours, prices, customer reviews, and a variety of
other details about each and every item. The best thing is that they are
open around the clock, allowing you to shop whenever it is most
convenient for you.

Today, more and more people prefer to purchase items from online
retailers in India, owing to the large variety of products available,
ranging from electronics to clothing, footwear, furniture, jewellery,
books, music, and presents, among other things. If you want to
purchase anything, all it takes is several clicks and the product will be
delivered to your home.

1.3.3 Online stores

The majority of e-commerce sites are online stores that have at least
one of the following features at the front-end level of operation:

• An online electronic catalogue that lists all of the items available for
purchase, their prices, and, in certain cases, their availability (products
in stock or number of days till delivery);
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• A search engine that makes it simple to locate a product based on
search parameters (brand, price range, key phrase, and so on) is
available.

It is the virtual caddy system (also known as a virtual cart or virtual

shopping cart) that is at the heart of the e-commerce system. The
virtual caddy makes it easy to track the client's purchases as they
progress through the system and to change the quantities for each
reference.

Online payment and accounting security is frequently provided by a

reputable third party (such as a bank) through the use of a secure
transaction.

• An order tracking system, which allows customers to follow the

progress of their orders and, in some cases, gives information on when
the shipment will be picked up by the shipper.

Using a back-office system, an online retailer may organise and

manage its product offers online, as well as alter pricing, add or delete
product references, and manage and process client orders.
Retailing on the internet typically takes one of two forms: either direct
sales or indirect sales.

eBay, the world's most well-known cybermall, provides access to items

from a range of independent sellers. • Internet shopping malls

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• Individual websites—Most large shops now have their own websites,
which serve as a complement to their conventional "bricks-and-mortar"
locations and provide additional information. Some retailers only
conduct business over the internet.

Dedicated shopping channels typically contain a presenter who does

live product demonstrations on broadcast. This is especially true in
terms of television sales. Viewers can purchase these items by calling a
toll-free order line and providing their credit card information, or, in
the case of interactive television services, by using the remote control
that came with their television. In recent years, a wide range of selling
strategies, including on-air auctions, have been introduced to the
marketplace.

1.4 INTRODUCTION TO ECOMMERCE

It is a form of industry in which the purchasing and selling of a product

or service is carried out through electronic systems such as the Internet
and other computer networks. Mobile commerce, electronic funds
transfer, supply chain management, Internet marketing, online
transaction processing, electronic data exchange (EDI), inventory
management systems, and automated data collecting systems are all
examples of technology used in electronic commerce. At some point
throughout the transaction's life-cycle, modern electronic commerce
will almost always make use of the World Wide Web, while it may
also make use of other technologies such as e-mail, mobile devices,
social media, and telephones as well.

Generally speaking, electronic commerce is regarded to be the sales

component of e-business. It also includes the sharing of data in order to
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make the finance and payment parts of commercial transactions easier
to complete.

E-commerce may be split into the following categories:

Internet retailing, sometimes known as "virtual storefronts" on websites

with online catalogues, which are often grouped together to form a
"virtual mall"

• The collection and utilisation of demographic information obtained

through Web contacts and social media platforms.

• Electronic Data Interchange (EDI), which is the interchange of

information between businesses.

• The use of e-mail and fax as communication tools with prospective

and existing consumers (for example, with newsletters)

• Buying and selling between businesses and between businesses and

customers

1.4.1 Growth and progression of E-commerce in India

The e-commerce market in India has risen by 34% in the previous

seven years, from around USD 600 million in 2011-12 to USD 9
billion by 2016 and USD 70 billion by 2020. In 2011-12, the market
was approximately USD 600 million. It is predicted that the Indian e-
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commerce market would expand at a compound annual growth rate of
more than 57 percent between 2012 and 2016, making it the fastest-
growing market in the Asia-Pacific region.

The major reasons driving this development are the increase in Internet
usage (which is rising at a rate of 20% per year) and 3G penetration, as
well as the increase in smartphone users as a result of the availability of
the Internet on mobile phones. It is believed that there are 27 million
mobile Internet users in India at the moment, with 4 percent of those
people making purchases on their mobile devices. In the next four
years, this percentage is anticipated to rise to 20 percent of all buyers
who use mobile devices. More and more customers are turning to
online shopping as a result of factors such as busy lives, traffic
congestion, a lack of offline shopping time, amazing bargains and
discounts given online, and the adoption of new e-commerce models
such as group purchasing and second-hand sales. Due to the increasing
middle-class wages, global exposure, and changing demographics
(almost half of the population is under the age of 25), this trend is also
evident in Tier II and Tier III cities, respectively.

On-line travel (76 percent) and financial services (10 percent) are the
two most significant components of online purchasing, with e-tailing
coming in second (8 percent). Travel tickets, movie tickets, restaurant
discount vouchers, hotel reservations, utility payments, insurance
policies, and premium payments are among the most popular services
purchased online, but product categories such as computers and
accessories, cameras and mobile phones, electronic durables, and
books are also growing in popularity. However, product categories
such as clothes, jewellery, and footwear (which need a high level of
touch and feel) that have the most potential in terms of market size also
face problems such as a high return rate and negative cash cycles as a
result of the COD payment method (cash on delivery).
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However, the e-commerce business is currently confronted with a
number of difficulties. The fact that credit and debit cards are only used
by a small percentage of Indians limits their ability to make purchases
online, to begin with. Despite the fact that techniques such as cash on
delivery have been implemented, they each have their own peculiarities
and provide significant working capital challenges for businesses.
Second, because large-volume products such as refrigerators need
significant freight and delivery expenses, and because the e-commerce
model in India is founded on the notion of free shipping, the sale of
such items online may suffer a setback due to this factor. Finally, the
distribution and logistics system in India is not well structured and is
prone to fraudulent activity. As a result, purchasing high-value
products such as jewellery or electronic goods (LCDs), which
necessitate the purchase of travel insurance, which increases the overall
cost of the purchase, may not be among the most popular online
purchases.

A high-quality user experience is essential in this segment, and this

includes a differentiated and detailed product catalogue, order
fulfilment, website performance, multiple payment options (credit
cards, payment gateways, cash on delivery, etc.), and a straightforward
and logical checkout process. Furthermore, as competition in this
market grows, e-commerce firms will need to spend in research and
development of distinct product catalogues, new service and customer
interaction concepts, and cost-effective supply chain and logistics
models in order to remain competitive.

1.4.2 Introduction to the E-Commerce & Internet Business

The worldwide Internet audience continues to expand at a rapid pace,
with the worldwide base of Internet users reaching the 2 billion marks

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as 2012 got underway, with a sizable proportion of mobile broadband
users contributing to this growth. This large number of Internet users
pushes firms to innovate and to provide a diverse range of online
services that is always developing. Sectors such as the selling of
entertainment, event tickets, travel, clothing, and consumer electronics
are among those that are developing at a quick pace on the internet.
The use of wireless devices to access the Internet, the migration of
entertainment to the online, and the use of cloud-based software as a
service are some of the most powerful trends on the Internet today.

The current crisis has resulted in a consumer market that is more

focused than ever on getting the greatest deals. As a result, e-commerce
companies such as Amazon, which are recognised for providing great
value at low rates, are well positioned to thrive. Amazon continues to
be the major winner in e-commerce, with sales surging as a result of
aggressive discount pricing, free delivery for its “Prime” subscribers,
and an ever-expanding range of item categories. Amazon's revenues
increased by 41% in 2011 to $48.0 billion, while the company's
earnings increased by a similar percentage. Books, movies, music, and
other forms of media currently make for only 35% of Amazon's total
sales, with electronics and general items accounting for the vast
majority of the remaining 75%. Amazon's sales outside of North
America are increasing, accounting for 44 percent of the company's
overall revenues. It is undeniable that online consumer purchases are
becoming increasingly popular in all of the world's major economies.
The latest results of Google, the world's largest online advertising
company, are a fair sign of the substantial rise in online advertising that
has occurred in 2011. The company's revenues increased by 29.3
percent in fiscal 2011, reaching $37.9 billion, while earnings increased
by 14.1 percent, reaching $9.7 billion.

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Worldwide, the number of broadband subscriptions is continuing to
grow at a rapid pace. As of the end of 2011, analysts at the
International Telecommunications Union (ITU) predict that there will
be 1.78 billion broadband customers globally (both fixed and wireless).

By the end of 2011, the number of homes and companies in the United
States that had broadband access capabilities had surpassed 88 million,
due in part to low monthly rates charged by Internet service providers.
This figure does not include mobile broadband users, who are projected
to number an additional 105 million.

According to eMarketer, online advertising in the United States hit

$31.3 billion in 2011, accounting for 20 percent of all advertising
spending in the country at the time. According to eMarketer, total
online goods sales reached $188.1 billion in 2011, and are predicted to
reach $269.8 billion by 2015. These figures do not include internet
travel sales, which were expected to have reached $107.4 billion in the
United States in 2011. The global travel expenditures on the internet,
according to Plunkett Research, are estimated to be $320 billion in
2011.

As more and more telecommunications services are moved to the

Internet, a substantial transformation is taking place in the world of
business. Voice over Internet Protocol (VOIP) continues to gain in
popularity, both at home and in the office. The notion of "unified
communications," on the other hand, has the potential to fundamentally
transform business communications by bringing all communication
channels together on a single screen on the desktop, including phone,
fax, e-mail, instant messaging, voice mail, and teleconferencing. Like
e-mail, voice conversations will be digitised and preserved in the same

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way that it is now. The communication tools used by a user will be able
to transition effortlessly from the desktop to the mobile device.
Convergence: The Internet is all about saving time (and, consequently,
money), and the potential of the Internet has only been scratched the
surface of its potential. As access to high-speed broadband Internet
connections becomes more ubiquitous, new techniques of maximising
efficiency are becoming more generally adopted. Users of the Internet
(both commercial and consumer) are increasing in number all over the
world, and many firms are reaping substantial financial rewards as a
result of providing services to those users. From 2004 until the present,
the long-awaited phenomena known as "convergence" of
entertainment, computers, and communications has been progressing at
breakneck pace, with no signs of slowing down. Recent televisions are
equipped with built-in Internet connections, which are becoming
increasingly common. In the short term, this will result in a significant
shift in the way television consumers receive their movies and
television shows from broadcasters. For example, Netflix customers
have the ability to stream downloaded movies straight to their
television sets that are linked to the Internet.

Travel, clothes and accessories, books, music, movies, technology, and

speciality foods, including wines, are some of the most popular product
and service categories sold on the internet. Online shopping accounts
for a considerable proportion of total sales in many markets.
Meanwhile, several of the world's top brick-and-mortar shops now
have websites that rank among the most popular on the Internet.

1.4.3 Information about E-commerce

E-commerce is most closely connected with the internet, and its
development has occurred in parallel with the expansion of the medium
in which it operates. Indeed, when the internet was first made available
to business customers in the early 1990s, e-commerce was made
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feasible for the first time. Nonetheless, it wasn't until the latter part of
the decade that businesses truly began to capitalise on the internet's
lucrative commercial possibilities.

The internet has enabled a number of start-up firms to develop as

retailing behemoths in their own right. Examples include Amazon and
eBay, which have used the power of the internet to become household
names. In contrast, e-commerce has been primarily created by
established major merchants that see it as a simple extension of their
existing sales channels. Large grocery shops that have moved away
from food and into a wide range of other categories, such as apparel
and technological products, have been particularly quick to see the
possibilities of this trend. Very tiny companies have also benefited
from the medium's development. It is now feasible to purchase a wide
selection of specialised items via the internet that are not readily
available in traditional shopping centres. Many small manufacturers
have benefited from the internet, which has also enabled businesses to
enter the retailing industry without having to make large capital
investments in actual retail stores.

E-commerce has proven to be so successful because it provides

considerable benefits to both customers and merchants that use it. The
Internet allows consumers to compare a large number of stores in a
short period of time, something that would be hard to accomplish in
person. When compared to traditional retailers, online retailers
frequently offer significant discounts on products and services.
Additionally, buying products and services online is convenient
because consumers can complete their purchases from the comfort of
their own homes and have them delivered right to their door.
Furthermore, online shopping appeals to those who are concerned
about the environment. Researchers at Heriot-Watt University in the
United Kingdom discovered in March 2009 that online shopping is 24
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times more environmentally friendly than driving to the store and seven
times more environmentally friendly than riding the bus. It was
discovered that home deliveries produced significantly lower levels of
carbon emissions than normal deliveries from a nearby depot, as
compared to the average carbon footprints of shopping excursions by
car and bus, which were conducted by the researchers. An investigation
by the Carnegie Mellon Green Design Institute in the United States
revealed that shopping online can lower "our environmental impact by
as much as 66 percent." The report was published in June 2009.

For companies, the benefits of e-commerce are mostly derived from the
cheap cost of starting and running a commercial operation. Firms are
not required to make significant investments in a physical presence or
in sales personnel. They do, however, have to establish payment
methods, distribution, and return procedures, among other things.

1.4.4 The state of e-commerce today

Ecommerce is a unique experience in today's world. Traditional
shopping has been completely changed as a result of this phenomenon.
A large number of ecommerce enthusiasts have already discovered
how much superior it is than any other method of shopping.

Whereas online shopping used to be considered cutting-edge, it is now

considered standard practise. At times, it appears like people are
shopping literally everywhere - at their jobs during lunch breaks,
during rush hour, when they have nothing better to do than turn on their
laptops and start surfing.

Ecommerce has risen to such prominence in recent years as a result of

the rapid advancement of the technology that underpin it. We are also
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given the option to "feel" the object using a 3D mouse in order to have
a greater understanding of its form, size, and texture. After all, why go
out and spend money when all you have to do is place an order online,
pick a delivery option, sit back and wait till the product is delivered
right to your door?

Even traditional retailers have begun to see the dangers of ecommerce

since it provides such a high level of luxury. Everyone believes that it
will take a long time for an online store to completely replace
traditional brick-and-mortar businesses, but the possibility of this
happening in the future is extremely real. The ecommerce phenomenon
that we are experiencing now adds so much excitement and adventure
into our lives that the whole online community takes pleasure in it.

There are certain disadvantages to doing business online nowadays, but

as the saying goes, "he who fears every bush should never go birding."
Many people are willing to put up with negative aspects because they
have faith in the online world and want it to be a better place.

1.4.5 The E-Commerce Industry in the Future

Experts believe that ecommerce will have a prosperous and wonderful
future in the twenty-first century. In the near future, ecommerce will
continue to establish itself as a significant sales channel. Because e-
shopping is becoming more and more popular and natural, successful
ecommerce will become a concept that is inextricably linked to the
internet in the future. At the same time, intense competition in the field
of ecommerce services will accelerate the development of these
services. As a result, the expansion of Internet sales and the
advancement of ecommerce will be the dominant future trends in the
industry.

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Every year, the number of ecommerce transactions increases
dramatically. The sales volumes generated by online retailers are more
than equivalent to those generated by traditional brick-and-mortar
businesses. And this trend will continue since many people are
"imprisoned" by their jobs and home responsibilities, but the Internet
saves a great deal of time and provides the chance to shop for the best
deals on items. The current Internet sales surge will provide the
groundwork for a dazzling ecommerce future in the coming years.

The “quantity to quality” trend in ecommerce is also becoming more

and more apparent, since the Internet has eliminated the influence of
geography from the selling process altogether. As a result, it doesn't
matter whether your business is in New York, London, or a little
village any longer; everything is possible. Merchants will need to
adjust quickly to the new environment if they are to survive. To attract
more customers, e-store owners will need to do more than just increase
the number of services they offer; they will also need to pay more
attention to elements such as attractive design, user-friendliness, and
appealing product presentation. They will also need to employ modern
technologies at the appropriate time for their businesses to become a
part of the ecommerce future.

Of course, individuals that purchase e-stores early in the process have a

greater chance of future success and riches, however owning an e-
commerce site does not guarantee anything in and of itself. Only via
the use of a suitable ecommerce solution in conjunction with extensive
eMarketing and promotion can the business insurance be purchased.

1.5 INDUSTRY PROFILE

1.5.1 RETAIL INDUSTRY

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India's economy is the world's second fastest expanding behind China.
It has the third biggest economy in the world in terms of GDP and the
fourth largest economy in terms of Purchasing Power Parity, according
to the International Monetary Fund. At this point in time, India
provides a tremendous potential for the globe to utilise it as a centre.
India, which is on the cusp of a retail revolution and is seeing a rapidly
changing retail scene, is poised to become the first country to
experience the phenomena of the global village. In the eyes of global
brands and Indian merchants, India is the "promised country." "A
thriving economy," as the phrase goes. India ranks first on the list of
rising markets for global retailers, and the country's retail industry is
growing and modernising at a rapid pace in tandem with the country's
economic development. The future seems bright; the market is
expanding, government regulations are becoming more favourable, and
new technology are making it easier to conduct business.

Retailing in India is slowly but steadily making its way toward

becoming the next big thing. The entire notion of shopping has
changed, both in terms of structure and in terms of customer
purchasing behaviour, ushering in a revolution in the way Indians
purchase. Modern retail has made its way into India, as seen by the
proliferation of enormous shopping malls, multi-story malls, and
massive complexes that include shopping, entertainment, and cuisine
all under one roof. The Indian retailing industry has reached a critical
juncture, at which the expansion of organised retailing and the growth
in consumption by the Indian population will both accelerate, resulting
in a greater growth trajectory for the sector. The Indian population is
undergoing a substantial shift in terms of its demographic composition.
The retail industry in India will benefit from a big youthful working
population with a median age of 24 years, nuclear families in
metropolitan areas, a rising working-women population, and new
prospects in the services sector, which will be the primary growth
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drivers in the future. Consumer spending in India is expanding at
unprecedented rates, and a growing number of global firms are
investing in this sector. Retailing in India is developing quickly, and
the industry is becoming more competitive. It is predicted that
organised retail in India would experience significant changes over the
next five years, and that it will scale up to match global standards in the
process. Over the past decade, there has been tremendous expansion in
India's retail industry. From 2000 to 2006, the industry had the most
substantial growth, with sales increasing by about 93.5 percent on
average every year, resulting in an average annual growth rate of 13.3
percent over that time period. The rapid growth of the Indian economy,
as well as the overall rise in the income level of consumers, contributed
to the sector's expansion in part. Apparel and consumer durables are
the fastest-growing verticals in the retail industry, with apparel
accounting for over half of all sales. Mobile phones as a product
category have had the fastest rise in customer demand among all retail
product offerings, as a result of the rising penetration of
communications in towns and rural areas. A total of 5 million new
subscribers have been added to the telecommunications sector per
month on average. As young urban India's average income and
purchasing power rise, the other product categories are seeing an
increase in popularity, particularly in urban regions and growing cities,
according to the World Bank.

1.5.1.1 History of Retailing

An establishment that sells commodities at retail, but which also holds,
exhibits, or sells wholesale goods. A store is generally defined as a
shop for the retail sale of commodities. Retailing, or the sale of
products to the general public, is one of the oldest industries in the
world, with evidence of its existence dating back to prehistoric times.

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In 1998, total retail sales in the United States, which include sales from
both shops and dining places, exceeded $2.7 trillion. Over 1.5 million
retail enterprises employ a total of 19.8 million people in the United
States at the present time. The majority of them are tiny. In the retail
industry, one-third of all firms have no paid employees, while around
43 percent have less than 10 employees. Three-quarters of all retail
sales are generated by larger businesses with yearly sales of over
$500,000, according to the National Retail Federation. Retailers with
10 or more locations dominate around one-fifth of the market,
accounting for 95 percent of all department store sales, 56 percent of
all pharmacy sales, half of all shoe sales, and 57 percent of all grocery
store sales.

1.5.1.2 The Development of Retail Stores

The exchange of food and weapons was probably the oldest form of
retail retailing; subsequently came traders and peddlers, and by 3000
BC, shops had become commonplace. In the Greek and Roman
periods, businesses, including numerous specialised shops, evolved in
the style of open booths, drawing enormous international audiences
into the stores' aisles. After the fall of the Roman Empire, barter grew
increasingly significant, but by the fourteenth century, it had mostly
faded away. The role of retail commerce has risen once again.
Merchants, who were once regarded with mistrust, progressed up the
social ladder through time. Small establishments, each specialising in a
particular category of merchandise, reached its zenith in the 18th
century. It was during this period that the wholesale market flourished,
and travelling salespeople as well as regular rates were widespread.

In the United States, the general store was the predecessor of the
single-line store and is still prevalent in small rural towns and rural
villages today. The department store, which is a large-scale general
shop or a collection of single-line stores in which each line of products
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is managed as a separate department, first appeared in the late
nineteenth century. Such stores offer the ease of easy access to a wide
selection of items while also being reasonably priced. Developing
shopping centres and malls, which are large retail projects that feature a
diverse range of businesses and services, has been made possible in
large part by the emergence of modern department stores.

Mail-order houses are retail establishments that do the majority of their

business through the mail. Montgomery Ward (established 1872) and
Sears, Roebuck & Company (formed 1886) were among the first and
greatest retailers in the United States, selling their products to rural
people through yearly catalogues. Both companies went on to construct
warehouses and retail locations in a variety of metropolitan regions;
Montgomery Ward collapsed in 2001, and Sears combined with Kmart
to form the Sears Holdings Corporation in 2005, becoming a subsidiary
of the Sears Holdings Corporation. Increasingly, telephone and Internet
orders are being accepted by mail-order businesses as well as by brick-
and-mortar stores. Because of the development of the World Wide
Web on the Internet, firms such as Amazon.com have sprung up that
sell items only through an Internet site, or on-line "shop," and send
orders via the mail or other modes of delivery.

Despite the fact that chain shops have existed since the early nineteenth
century, it was the Great Atlantic and Pacific Tea Company (A&P) that
established the current form in 1859 by standardising the quality and
pricing of every product offered in its stores. Chain businesses are
typically able to offer their items at rates that are far lower than those
paid by independent retailers because of central administration, bulk
purchasing, standardisation of business procedures, and minimal
individual service. When it comes to chain stores, five-and-ten-cent
stores (such as those operated by the F. W. Woolworth Company,
which operated such stores until 1998) were once common, but
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discount superstores (such as Wal-Mart; see Walton, Sam) and
bakeries, tobacco stores, drugstores, grocery stores, and department
stores are now the most common types.

Europe and the United States have both seen the establishment of
consumer cooperative stores (also known as cooperative movement).
Following World War II, the practise of discounting products became
popular, and businesses that specialise in reduced merchandise have
emerged as the fastest expanding section of the retail industry.
Discount clubs, where consumers must pay a fee to become members
and name-brand items are sold at a discount (sometimes in bulk or
extremely big containers), first gained popularity in the 1990s and have
since spread around the world.

1.5.2 A Brief History of the Online Sector:

Because of the fast evolution of the e-commerce and Internet sectors
since its inception in the 1970s, the following stages may be
distinguished: 1.

The Internet is established: First and foremost, there were the early
days, when the Internet was widely perceived as a domain reserved for
technologists exclusively, one that would yield few, if any, commercial
companies. Initial designs for the Internet were created by Vinton Cerf
in 1973 as part of a project supported by the United States Department
of Defense's “Defense Advanced Research Projects Agency” and
funded by the National Science Foundation (DARPA). In November
1977, the first demonstration of a three-network Internet protocol-
based connection was made possible through the use of the Internet
Protocol. The Internet was officially launched in 1983, largely as a
foolproof mode of defence communications as well as a mechanism for

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researchers at various institutions to interact with one another and share
information.

Tim Berners-Lee conceptualised and implemented the World Wide

Web and the HTML coding language between 1989 and 1993, enabling
a never-ending hyperlinked cyber world where sharing unlimited data
became user-friendly thanks to the magic of linked pages. The World
Wide Web and the HTML coding language were created in 1989 and
implemented between 1990 and 1993 by Tim Berners-Lee, enabling an
endless hyperlinked cyber world where sharing unlimited data became
user-friendly thanks to the magic of linked pages.

As a result, there is a boom: Entrepreneurs and investors began to see

in 1993 and 1994 that hyperlinked, electronically posted data might be
sold, with huge, worldwide potential, and began to invest in the
technology. Customers and business people alike would be willing to
pay for the ease of online buying and trading, as well as the ability to
access publicly available data, according to a vision for a dramatic
change in retailing, publishing, and entertainment. In its wake, an
economic boom unprecedented since the beginnings of earlier technical
breakthroughs: electricity, railroads, telephones, automobiles and
passenger-carrying aeroplanes ushered in a period of unprecedented
prosperity.

Hundreds of thousands of new enterprises were established with much

anticipation. It was a mixed bag of capitalization for these new
Internet-enabled businesses, ranging from cash-strapped start-ups
established with Visa card credit lines to companies like Web Van,
which got large sums of money from professionally managed venture
capital firms only to collapse spectacularly. Around 6,000 new
companies of substantial scale raised a total of more than $100 billion

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in venture capital during the time of high investment activity (1994-
2000). Approximately 450 of these firms went public by selling their
stock to the general public (initial public offerings). The stock market
surged, and billionaires were created overnight. Individuals and
families from all walks of life put their money into technology stocks,
and their wealth soared in a matter of months as a result. The profits
made by venture capital funds that cashed out early were tremendous,
and financiers had no trouble finding more investors for new venture
capital pools. In January of 2000, the NASDAQ index of equities
reached 5,000, prompting the Chairman of the Federal Reserve to issue
a warning about "exuberant optimism." Some predicted that the boom
would be short-lived, while others predicted that it was the beginning
of a "new economy" that would endure indefinitely.

NASDAQ crashed in March 2000, bringing the whole Internet business

to its knees, and the Internet industry entered a dark and gloomy phase
in the middle of 2000. Hundreds of thousands of individuals lost their
employment as a result of the recession. The value of one's stock
portfolio has dropped. Thousand of businesses closed their doors, went
bankrupt, downsized or were acquired at a cheap price by competitors
in the last several years. It was a particularly bad day for those who
sold hardware, software, consultancy, and telecommunications
services. Entrepreneurs found it virtually hard to get the capital they
needed to start or grow their enterprises. For some, the promise of a
"new economy" has turned into a nightmare: earnings are still
important, and business cycles continue to occur.

The Reality Phase: By early 2003, the gloomy clouds that had hung
over this sector had begun to lift, and a "reality phase" had begun to
take shape. Internet-based enterprises that were well-conceived were
demonstrating their worth. Consumers had developed a strong
preference for purchasing goods and services over the Internet.
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Businesses of all sizes and types are discovering that the Internet
increases genuine operating efficiency while also increasing
profitability and increasing sales. For example, while the majority of
the airline industry has suffered greatly in recent years, value-based
discount airlines Southwest and JetBlue have enjoyed superior
financial performance, thanks in no small part to their use of e-
commerce to efficiently book reservations and sell tickets online.
Southwest and JetBlue are two such airlines. The most essential reason
in the resurgence of the e-commerce and Internet sectors has been the
improvement in "efficiency." In terms of efficiency, consumers find the
Internet to be an excellent tool for expanding their shopping and
banking activities. Travelers feel that booking hotel rooms and airline
seats over the Internet is a convenient and time-saving method. For
corporate procurement managers, the Internet is the most efficient
means of procuring the items and inventories that their companies
require. There are hundreds of millions of people in the world.

E-mail, instant messaging, and voice over Internet protocol (VoIP)

telephony are the most efficient modes of communication for people all
over the world.

Low costs are a driving force for the steady global growth phase:
Currently, access to high-speed Internet service, both wired and
wireless, is accessible at low rates in an increasing number of locations
throughout the world. In even the most underdeveloped countries,
individuals and companies have come to rely on the Internet for their
day-to-day requirements. The “second billion” group of users has been
reached throughout the world, and the “third billion” group is definitely
in sight over the medium term, as cheaper devices continue to spread in
the marketplace. Mobile computing is advancing at breakneck pace,
owing to the availability of low-cost mobile phone contracts that
include improved Internet connectivity.
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As a result, the cost of building and maintaining websites has dropped
dramatically, making it possible for millions of self-funded
entrepreneurs to launch their businesses and for venture capital
organisations to invest start-ups with small sums of cash. Using open-
source software and cloud computing, in conjunction with modular
development tools, has made it quicker, faster, and less expensive to
launch sophisticated web sites in recent years.

1.5.2.1 India’s most popular online websites

Online shopping has been increasingly popular in India in recent years.
Individuals have been appreciating the ease of having their order
delivered straight to their front door. The selection of trustworthy
websites, on the other hand, is frequently difficult because there is a
multitude of sites, all of which claim to be trustworthy. However, in
practise, only a select handful are up to the task. Consequently, to make
your life easier, we've compiled a list of the top 10 online shopping
destinations.

EBay.in is one of the most popular online marketplaces in India. In this

online marketplace, anyone may exchange almost anything with
anyone else. It is a marketplace where a varied community of
individuals and businesses may sell their goods and services.
Approximately 50,000 categories are covered by eBay users, including
collectibles, antiques, sports memorabilia, computers, information
technology and office supplies, art, antiques and collectibles, toys,
dolls, stamps, comics, magazines, music, pottery, glass, photography,
electronics and jewellery, and gemstones, according to the company's
estimates.

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Fashion and You is an online site that may only be accessed by
invitation. It showcases the most prestigious international and Indian
designer companies in luxury, high-fashion, and lifestyle experiences
for men, women, children, and the entire family.

Book, smartphone accessories, cameras, gaming consoles, MP3

players, home and kitchen appliances, and many other goods are online
for purchase on Flipkart.com, an online shopping site that offers
discounts on a variety of products. It accepts a variety of payment
options for orders, including credit card, debit card, net banking, e-gift
certificate, and cash on delivery. Delivery of the order is usually
completed within 3-4 working days after receipt of the order.

India's largest online supermarket, MyGrahak.com, is said to be the

largest in the world. It sells a diverse range of products, including
FMCG, food, non-food, grocery, rice, gourmets, and other items of a
similar nature. At MyGrahak.com, you may save money when
shopping online with attractive discounts.

It is a part of the Future Group, which owns brands such as Big Bazaar,
Pantaloons, and Central. Futurebazaar.com is one of the largest online
retailers in India, and it is part of the Future Group. It provides a
diverse selection of products in the areas of photography, consumer
durables, home decor, home entertainment, appliances and electronics,
and mobile.

Founded in 2004, Homeshop18 is a virtual store that sells high-quality

items and services directly to people across the country in a multi-
media environment that includes television, the web, catalogues, and
print. This store sells a variety of items, including books, movies, and
music, presents and flowers, mobile phones and accessories, cameras
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and camcorders, electrical devices, computers, and peripherals, toys,
and games, among many other things.

Myntra.com is an online shopping destination for fashion and leisure

items. It allows you to purchase online from the most recent catalogue
of unique branded items in clothes, footwear, and accessories for men,
women, and children.

Snapdeal.com, according to its website, promises to offer daily

discount offers with discounts ranging from 50 to 90 percent off in key
locations throughout India. You may get discount coupons/vouchers
for restaurants, spas, gyms, travel/holiday packages, and other
interesting stuff in your city all in one convenient location, according to
the website.

Letsbuy.com is an online retailer of branded consumer electronics and

information technology items. The company claims to sell more than
9000 products from leading worldwide and domestic brands, including
Apple, Samsung, and Sony. Among the items that the firm sells include
technological products like as laptops, printers, networking, digital
cameras, and storage, as well as consumer electronics such as LCD
televisions, mobile phones, MP3 players, gaming systems, and home
electrical devices.

Mydala.com is a website that connects you with the best offers

available in your location. It promises to offer offers every day, with
discounts ranging from 40 to 95 percent off the top restaurants,
shopping, and salons in your area.

1.6 COMPANY PROFILE

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1.6.1 FLIPKART.COM (http://www.flipkart.com/)

Flipkart is an Indian e-commerce business based in Bangalore,

Karnataka. It was founded in 2004. It was created in 2007 by Sachin
Bansal and Binny Bansal, who are brothers. Flipkart began by focusing
on the online selling of books, but it quickly expanded to include
electronic items and a wide range of other things as the company grew.
Multiple payment options are available on Flipkart, including credit
card, debit card, net banking, electronic gift vouchers, and Cash on
Delivery (COD).

Flipkart launched in 2007 with the goal of making books widely

accessible to anybody with an internet connection, regardless of where
they lived. They may be found in a variety of categories, including
movies, music, games, mobile phones, cameras, computers, healthcare
and personal items, home appliances, and electronics - and there are yet
more to be discovered!

In the country, they are one of the most successful e-commerce

operators, with over 11.5 million book titles, 11 distinct categories,
more than 2 million registered users, and a daily sales volume of 3000
products (or more).

Most of their success may be attributed to their unwavering

commitment to providing clients with a remarkable online shopping
experience. Whether it's Cash on Delivery, a 30-day replacement
policy, EMI choices, free delivery, or the low pricing that they provide,
they've got something for everyone. Then there's the specialised
Flipkart delivery staff, which works around the clock to personally
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ensure that items are delivered on schedule and in good condition. For
the time being, they are only present in 27 lucky cities, but don't worry,
plans are in the works to expand to many more.

1.6.1.1 Flipkart.com's Historical Development

Founded in 2007 by Sachin and Binny Bansal, both graduates of the
Indian Institute of Technology, Delhi, Flipkart is a leading online
marketplace. They were employed at Amazon.com before resigning
and forming their own business venture. They were both excellent
coders, and they had hoped to launch a comparison website for other e-
commerce websites. However, there were few such sites in India, so
they chose to start their own e-commerce business, Flipkart.com, which
was launched in October, 2006.

As a result, Flipkart was founded in October 2007 with an initial

investment of Rs. 4 lakhs (co-founders’ savings). It was never going to
be simple, especially considering India's previous negative experiences
with e-commerce transactions. It was a difficult market to break into
because people were quite picky about spending money for something
that they had not seen and received in person first. Customers from
India lacked confidence in the company. In order to do this, Flipkart
needed to instil confidence and trust in its consumers. And they
repeated the process in the same way afterwards.

Initially, they relied on word-of-mouth marketing to spread the word

about their firm.

Books were the starting point for Flipkart because they are
inexpensive, easy to procure, have a large target market that enjoys
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reading them, provide more margin, are easy to pack and deliver, do
not get damaged in transit, and most importantly, are not very
expensive. As a result, because books are inexpensive, the amount of
money a customer has to spend to try out one's service for a single time
is very small. During its initial two years of operation, Flipkart solely
sold books. Following this, the firm sold its first book on Flipkart.com,
John Woods' Leaving Microsoft to Change the World, which was
published in 2012.

Flipkart originated with the consignment model (demand-driven

procurement), which meant that anytime a client placed an order for a
book, they would personally purchase the book from the dealer, pack
the book in their office, and then courier the book to the customer's
location. Customers used to be able to reach the founders on their
personal mobile phones during the early months of the company.
Consequently, they made every effort to give excellent service,
concentrate on making the website user-friendly, easy to explore and
purchase from, and work tirelessly to fix any consumer concerns that
arose. This provided them with a great deal of room to develop because
there were no established companies in the industry at the time, and
they did in fact grow at a very quick speed.

1.6.1.2 Flipkart Today

Today, according to Alexa traffic statistics, Flipkart is among the top
20 Indian Web sites, and it has been dubbed "India's largest online
bookshop" due to the fact that it has more than 11 million titles
available for purchase. Since its inception, the store has sold books,
CDs, DVDs, mobile phones and accessories; cameras; computers;
computer accessories and peripherals; pens and stationery; and other
electronic items such as home appliances; kitchen appliances; personal
care gadgets; health care products; and other items such as toys and
games. Further, in 2012, Flipkart expanded its product offerings to
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include air conditioners, air coolers, school supplies, office supplies, art
supplies, and other lifestyle items. As of today, the company began
with only two employees and has grown to include more than 4500
personnel.

As a book seller in Bangalore, Flipkart.com first launched its services

in 2007. In September 2010, it expanded its product line to include
mobile phones, launching in the consumer electronics market. Since
then, it has continued to grow by introducing additional product
categories such as books, mobile phones, laptops, cameras, home &
electronic devices & appliances, and more. In addition to these
extremely favourable conditions, Flipkart.com has recently expanded
its product range by entering the rapidly growing digital content
industry with the introduction of Flyte, a digital music shop. The
company is still expanding its product offering. With over 11.5 million
book titles, 14 different categories, 3 million registered users, and sales
of over 30,000 items per day, it has emerged as one of India's leading
e-commerce players. It is currently ranked among the top 20 websites
in India, with a presence in 37 cities and a presence in over 20
countries. This company offers online customers with a remarkable
online shopping experience via the use of unique services such as:

• Cash on Delivery,

• A 30-day replacement policy is in force.

• Simple monthly payment plans are available (EMI),

• Shipping is completely free.

• Price reductions and special offers

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As previously mentioned, Flipkart began with a consignment strategy.
However, because the procurement model is responsible for the
majority of customer concerns such as delivery delays and other issues,
the firm began establishing its own warehouses as it received more
funding. Initially, the firm established a warehouse in Bangalore, and
then expanded to include warehouses in Delhi, Kolkata and Mumbai.
Today, the firm has over 500 vendors with whom it collaborates. As of
now, more over 80 percent of Flipkart orders are processed through
warehouses, which allows for more timely and efficient service.

Flipkart has grown from its humble beginnings selling books to

currently offering a diverse range of items including: cell phones,
laptops, computers, cameras, games, music, audio players, televisions,
healthcare products, washing machines, and many more. In spite of
this, Flipkart generates around 50% of its income from the sale of
books online. Flipkart is the market leader in India when it comes to
selling books both offline and online, with an online market share of
about 80 percent. There are several participants in the electrical
products market, including Naaptol, Letsbuy, Indiaplaza, Tradus,
Infibeam, Yebhi, and others. The electronic market share is spread
among them in a variety of unknowable proportions, according to the
data.

The number of internet users in India now is around 13.5 crore, but the
number of houses with Cable and Satellite (C&S) television is
approximately 10.5 crore. By 2014, it is projected that 30 crore internet
users would have joined the network, and 14 crore C&S houses will
have been built. As a result, India has experienced enormous internet
development, and with customers becoming more used to e-commerce,
the future of the e-commerce sector is unquestionably bright. This year,
around 25 lac individuals have transacted online, and the figure is
expected to rise in the next months and years.
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Also worth mentioning is that the majority of Flipkart consumers place
their orders through the internet from their PCs or laptops. At the
moment, the use of mobile internet for e-commerce transactions is
extremely limited, but with the introduction of smart phones, the use of
mobile internet for e-commerce transactions will skyrocket in the near
future. At the moment, India has 8 crore mobile internet users, with the
number anticipated to grow to 22.5 crore by the year 2014.

Flipkart had revenue of 4 crore in the fiscal year 2008-2009, 20 crores

in the fiscal year 2009-2010, 75 crores in the fiscal year 2010-2011,
and revenue of 500 crore in the fiscal year 2011-2012, which ends on
March 31, 2012. This is, without a doubt, a significant increase. By
2015, the firm expects to generate sales of Rs. 5000 crores.

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1.6.2 Evolution of Logos

1.6.3 Financial Support

 Initially, the Bansals personally contributed 4 lakh rupees to the
project (INR).

 The company has now received financing from venture capital

firms Accel India (in 2009) and Tiger Global Management (up to

a total of US$10 million) (in 2010).

 According to reports, private equity companies Carlyle and

General Atlantic are in negotiations to invest a total of $150

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 million to $200 million in Flipkart as part of a combined
investment.

1.6.4 Acquisitions
 WEREAD, a social book discovery platform, was launched in
2010. The claimed purpose was to provide Flipkart with a social
recommendation network so that customers could make educated
purchasing decisions based on social recommendations.

 They will receive recommendations from others in their social

network.

 Mime360, a digital content platform firm, was founded in 2011.

 Chakpak.com is a Bollywood news website that provides updates,

news, photographs, and videos. It was launched in 2011. Among
the items available in Chakpak's digital library, Flipkart has
acquired the rights to sell

 40,000 filmographies, 10,000 films, and over 50,000 ratings are

available. It has been stated unequivocally that Flipkart would not
be connected with the original website and will not make use of
the brand name.

 Letsbuy.com, India's second largest e-retailer in the electronics

industry, was founded in 2012. According to estimates, Flipkart
purchased the firm for US$ 25 million.
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1.6.5 Flipkart's internal teams

1.6.5.1 Categorization and Management

It is necessary for all of this to be accomplished through an
exceptionally efficient supply chain, which is where Category
Management comes in. Category Management is in charge of vendor
connections and supply management, without which Flipkart would not
be able to offer the kind of service it does today in online shopping.
* Establishing a vendor network across the country.

* Profit and Loss Accountability for a variety of Product Categories

* Establishing and maintaining relationships with leading brands and

manufacturers

* Market Research and Analysis

* Managing the Supply Chain in order to source efficiently

* Using technology to find solutions to problems

1.6.5.2 Catalogue of items

These individuals design the appearance of each catalogue that is made
available on the website. To guarantee that our customers can make
educated purchases at all times, our staff is continuously working on
everything from product specs to making sure all product-related
material shows correctly on the site.

1.6.5.3 The Warehouse and Fulfillment Center

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Flipkart's procurement strategy is around getting items that are the
highest in "Quality," from the most appropriate "Source," and in the
shortest amount of "Time" in order to achieve "Customer Delight." On
the other hand, Flipkart's warehouses are where these items are
examined with a fine-tooth comb before being shipped out. After all,
we made a commitment to ourselves that we intend to keep: original
items with original warranties.
Moreover, because technology is vital to us, we perform all of this with
the highest level of automation possible.

1.6.5.4 Transportation and distribution

Flipkart ships 30,000 products each day, on average. That equates to 20
things every minute, which is virtually every single pin code in the
United States. At least 80% of these purchases are shipped by Flipkart
Logistics, our in-house delivery service that has been in operation for
one and a half years.

Flipkart is currently present in 30 cities, and we plan to expand our

presence throughout the country in the near future. FKL is comprised
of a large (and increasing) team of delivery executives that operate on
the premise of putting the client first.

1.6.5.6 Assistance to Customers

One of Flipkart's key differentiators is its emphasis on customer
satisfaction. During their time with Flipkart, they want their customers
to have the finest online shopping experience possible – and they will
do all in their ability to make that happen! Despite the fact that every
employee at Flipkart is accountable for providing a positive customer
experience at all times, it is our 24X7 customer support staff that has
been successful in setting unparalleled standards in the service sector.
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1.6.5.7 Financial Management
Founded as a start-up in 2007, Flipkart has grown into India's largest
online retailer, garnering revenues of Rs 2.5 billion per day and on
track to achieve its goal of achieving a revenue stream of $1 billion by
2014. Flipkart's revenue has increased from zero to Rs 2.5 billion per
day in just over a year. As a result, there can be no doubt that finance
plays an extremely essential part in their growth and development.

1.6.5.8 The Acquisition of Talent

When it comes to Flipkart, saying that the company is growing by
leaps and bounds is not an exaggeration. This firm, which began as a
two-person operation in 2007, has grown to include 4500 employees
(and counting). In the last year alone, we have welcomed 4000 new
members to the team. Since there is no hint of a slowdown in the need
for high-quality personnel across divisions, Flipkart's Talent
Acquisition Group, or TAG as they are affectionately known, has its
hands full.

1.6.5.9 Human Resource Management

When it comes to organisational growth, Flipkart has done it in a way
that has allowed it to emerge as a leader in the Indian e-commerce
market today. The high calibre, active, and adaptable staff that has
enabled us to keep up with the pace has made this feasible. Today,
Flipkart attracts highly skilled people from across the sector and from
colleges and universities alike, with the chance to innovate and get
exposure to a high-growth company environment serving as the
primary draws for candidates.

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Due to the fact that it is a decentralised role, the team is continuously in
contact with other business divisions in order to better understand and
meet their human resource requirements. In addition, the team develops
strategic partnerships with business functions in order to drive cross-
organizational projects.

Once an employee joins the company, the Human Resources team is in

charge of overseeing the whole HR life cycle for that individual. It is
the Human Resources team's responsibility to ensure that workers from
all departments and with a variety of backgrounds become acquainted
with and understand the Flipkart culture. Flipkart's human resources
team is kept very busy by the company's goal of increasing employee
engagement and assisting them in their professional development.

1.6.6 Payment through Wallet in Flipkart

Flipkart has introduced a new 'Wallet' function, which allows users to

keep money in their Flipkart accounts and use it to make future
purchases with that money. A prepaid credit system underpins the
Flipkart Wallet: customers may top up their wallet with any desired
amount up to Rs 10,000 by using any of the company's normal
payment methods, including credit card, debit card, and net-banking.
Flipkart Wallet is available in both English and Hindi. Afterwards, this
amount will appear as prepaid credit on the customer's account, and it
may be used as a payment method for any future transactions on the
site. This sum will, as expected, be taken from the balance in their
wallet associated with their account.

Their account on Flipkart or by checking the wallet balance at the top

of the page would allow them to keep track of your Wallet balance and
make purchases with it. For those who run out of money in their
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wallets before completing a purchase, Flipkart allows customers to
make a partial payment using your Wallet and the remainder amount
using alternative payment methods such as credit card, debit card, or
net banking. In addition, Flipkart points out that the Cash on Delivery
payment method cannot be used in conjunction with a Wallet payment.

As previously stated, there are other businesses in the nation, such as

MobiKwik and PayTM*, that provide online wallet services referred to
as ‘MobiKwik Balance' and ‘Paytm Cash,' respectively, demonstrating
the negative impact of unreliable payment gateways on online
transactions in India. While MobiKwikBalance allows consumers to
add money to their account to enable numerous purchases such as
online recharge for prepaid mobile phones, DTH, and datacards,
PayTM Cash allows you to save money in a wallet for use in future
transactions on the PayTM Cash website and mobile application.

According to recent reports, the firm ships about 20 units every minute,
with 65 percent of all transactions being completed using Cash on
Delivery (COD). Additionally, the firm intended to increase its
revenues by more than tenfold during this fiscal year.

1.6.7 Interesting facts and numbers regarding the site include the
following:

• Flipkart employs more than 4500 employees.

• 2 million sales units each month, and 4 million monthly visits

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Flipkart is India's largest online book store, with a catalogue of 11.5
million volumes.

• A total of 4 million consumers have registered as users.

• Ships out as many as 45,000 products per day, generating around Rs

2.5 crore in daily sales.

With the goal of reaching more and more Indian cities, Flipkart is now
investing in expanding its network of distribution centres, warehouses,
and procurement operations, which is currently only in eight cities
across the country. • Flipkart is now investing in expanding its network
of distribution centres, warehouses, and procurement operations, which
is currently in only eight cities across the country.

• The firm is even establishing its own delivery network, which is

already present in 37 locations and will be expanded even further by
the end of next year. By doing so, the company will be able to save
money on the costs connected with outsourced shipping and logistic
functions.

1.6.8 Factors Influencing the Success of Flipkart

The site is quite easy to browse, which allows users to quickly find the
information or goods they are looking for online. It even allows users
to search using several criteria, such as price range, search by brands,
search by age group, search by hot-selling, and so on. If a particular
product is not available or is out of stock, the website may ask users to
provide their contact information, and when the product becomes
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available, the users will be notified. This helps users stay connected to
the products they are looking for, which leads to repeat and frequent
purchases.

The Flipkart website is both fast and powerful, in that if you search for
any products in the Flipkart search bar, you will find exactly what you
are looking for in a short period of time, and it is extremely quick to
process payments and transactions thanks to the portals' highly efficient
and flexible payment mechanisms.
In the cash on delivery method, approximately 60% of all orders are
placed. Therefore, because there is a high risk of scams and frauds,
users must have their email account linked and with verified details,
and they must also receive a confirmation code message on their cell
phones or email, after which the users must confirm the unique code
and the transaction is processed, and the package is usually delivered in
2-3 business days to the confirmed mailing address.

Flipkart is able to deliver the goods within two to three business days.
If an order is not delivered within the given time frame, an urgent
inquiry is sent to the nearest supplier, and the item becomes available.
After then, it will be delivered within 24 hours, depending on the cause
of the hold-up.

Flipkart is constantly striving to reduce the delivery time of regular

orders, and as part of this effort, it is investing in its own delivery
system and network. Time to delivery is one of the most important
aspects of selling products online, as users expect products to be
delivered as quickly as possible. The Flipkart marketing team has
developed an outstanding marketing strategy that aims to boost sales
revenues while also optimising the customer shopping experience and
increasing loyalty via repeat purchases.
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Through the use of cash incentives, loyalty points, discounts, coupons,
and Frequent Buyer Rewards points, the portals provide its consumers
with attractive price offers and bargains to take advantage of.
Additionally, it provides items at pricing points that are competitive
with those found in the actual market, allowing customers to save
money while still benefiting from the usage of reward points.

1.6.9 A Road Map for the Future

• By 2015, they want to have a tenfold increase in revenue and to have

$1 billion in sales.

• They want to make more significant investments in their supply chain

and technology going forward.

• Investment will be made in big warehouses as well as enhanced

automation of their processes in order to ensure that the product is not
delayed in transit.
• Their plans include entering new categories as well as expanding the
scope of existing ones.

It is anticipated that Flipkart would provide everything except food and

vehicles in the near future.

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Flipkart is looking at forming partnerships with a bigger number of
suppliers and partners, both domestically and globally, in order to go
higher up the value chain.

1.6.10 Threats in the near future

There are no significant dangers that can be predicted for the

foreseeable future. The firm has established an excellent brand name;
all that remains is for them to preserve and develop it. It is necessary to
continue to introduce new goods while also responding to the changing
demands of the client throughout time. The arrival of Amazon.com into
the Indian e-commerce market in 2012 has been highlighted as a
significant threat to Flipkart's dominance. Flipkart, on the other hand, is
a well-known brand in India, and it should be able to compete with
Amazon there. Amazon, as a large corporation, has the potential to
provide severe competition to Flipkart, as Amazon can afford to incur
greater losses in the early stages of establishing a client base. However,
the Indian market is developing at a quick rate as people get greater
access to the internet and become more aware of and trust e-commerce
websites; as a result, the Indian market is large enough at the very least
for these two giants to co-exist in a mutually beneficial manner.

1.7 OBJECTIVE AND SCOPE OF THE STUDY

Customer Perceptions of Online Shopping on Flipkart.com have been

studied and analysed. Generally speaking, it is critical to understand the
motivations behind consumer purchases, but it is also critical to
understand how consumers form perceptions and behaviours toward
online purchasing, as consumer perception toward online purchasing is
a significant factor influencing actual purchasing behaviour. One of the
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research projects is to investigate the variables that impact customers'
decisions to purchase items from Flipkart.com online. The team has
opted to look at four aspects: convenience, time savings, website
features, and security. In addition, research for out-of-stock products on
heavily discounted items will be conducted in conjunction with this.

Customers' desire to purchase online, on the other hand, may be

influenced by their unique requirements, one of which may be the
"Need for cognition" (need for knowledge). A poll is being done
 To find out how people feel about online shopping on
Flipkart.com, taking these considerations into consideration.

 To identify the variables that influence a website user's decision

to return to or suggest the Flipkart.com website.

 To identify the most important elements that impact the online

purchasing behaviour of Indian customers.

 To determine the demographics of online customers in order to

better understand them.

 To have a better understanding of client awareness of

Flipkart.com

 Identifying the factors that contribute to customer satisfaction is

the goal.

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The scope of the study is a basic outline of what will be covered in the
study (e.g., a class or a seminar). "Scope" describes the parameters of
this, which can be an object, a theoretical process, an action, or a
combination of these.

Describing information about the future, the present, or the past; or

making claims about descriptive action, experience, etc. An
investigation of customer perceptions of online shopping on
Flipkart.com has been selected as the subject of this study. The sample
size chosen was based on the convenience of the participants as well as
the study's aims. To get an understanding of the different elements of
Flipkart's presence in the market, the changes that are required in terms
of features and procedure, and the impact of various factors on the
purchasing behaviour of online customers. The geographical area
covered by this study is the National Capital Region of Delhi (India).

1.8 LIMITATIONS OF THE STUDY

Without acknowledging the constraints that were encountered when

performing a study that would add to current learning, no research is
considered complete. This research, like the others, is subject to a
number of limitations, which are addressed more below.

• The study was limited to the Delhi ncr region exclusively.

• The majority of the research is focused on Flipkart.com.

• Due to time and resource constraints, the sample size will be

restricted.
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• The information will be gathered and kept current as long as there is
no technological advancement or innovation.

• The conclusion is based on the assumption that respondents provided

correct information.

2.
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 REVIEW

OF

LITERATURE

REVIEW OF LITERATURE
Androulidakis and G. Kandus (2011) found a link between the brand of
a mobile phone and the security habits of its users. Users exhibit a wide
range of behaviours in a variety of characteristics, depending on the
brand of mobile phone that they are now using. So, there is a
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categorization of regions, which is different for each business, where
people are clearly deficient in security consciousness, which may be
attributed to a lack of knowledge. It is possible that such a
classification will assist phone makers in improving the security of
their mobile phones, preferably in a visible manner for the user.

A study conducted by Tajzadeh Namin A. A., Rahmani Vahid, and

Tajzadeh Namin Aidin (2012) discovered that the process of deciding
over (choosing) an item may be affected by both the context and the
content. Specifically, the findings indicate that there is a statistically
significant link between the variables "brand attitude," "company
attitude," and "product (cell phone) choice." It was also shown that
there was no statistically significant link between individual decision-
making processes (independent or mediated) and product choice.

Serkan Aydin, Gokhan Ozer, and Omer Arasil (2005) have

concentrated on measuring the impacts of customer satisfaction and
trust on customer loyalty, as well as the direct and indirect effects of
"switching cost" on customer loyalty in order to better understand
customer loyalty. It was discovered by this study's investigators that
the switching cost element has a direct impact on customer loyalty and
a moderator effect on both customer happiness and trust.

Using a multivariate analysis, Jonathan, Lee, Janghyuk, Lee, and

Lawrence, Feick (2011) determined that switching costs play a
moderating effect in the customer satisfaction-loyalty connection; and
to identify consumer groups and retain them. In this article, the
objectives are to investigate the moderating impact of switching costs
in the customer satisfaction-loyalty connection, as well as to define
customer subgroups and then assess the heterogeneity in the
satisfaction-loyalty link across the various segments. An empirical
example based on the mobile phone service industry in France provides
support for the idea that switching costs have a moderating effect on

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demand. The findings are explored in terms of their managerial
ramifications.

Whether or whether demographic characteristics or telephone features

included in phones students already owned were predictive of young
customers' impressions of bundled features was the subject of a study
conducted by the Dream Catchers Group in 2008. Furthermore, the
purpose of this study was to examine whether there were any
statistically significant variations in students' judgments of bundled
characteristics across different demographic factors (rural vis-a-vis
HBCU, gender, grade level, cellular telephone brand, major, and age).

In their paper, Oyeniyi, Omotayo Joseph, Abioudun, and Joachim

Abolaji (2010) place a strong focus on customer loyalty and customer
switching costs. Switching costs are one of the most talked-about
topics in marketing right now, as marketers try to figure out why
people do what they do. In the present study, the switching cost was
investigated, as well as its correlations with customer retention, loyalty,
and satisfaction in the Nigerian telecommunications industry.
According to the findings of the study, customer happiness has a
favourable impact on customer retention, and switching costs have a
substantial impact on the degree of client retention.

Page | 70
 3.
RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

3.1 Research Design

Page | 71
When it comes to research, various individuals define it differently.
The goal is to study an enormous amount of facts, theories,
experiences, thoughts, and law. The term "research technique" refers to
"the procedural framework within which the study is carried out." The
Quantitative and Qualitative approaches to social research are two
broad and different approaches to social research that span the many
ways of inquiry.

Rather of asking ‘what?' inquiries, the quantitative paradigm seeks to

obtain a better understanding, knowledge, and insight into a specific
situation or phenomena by providing answers to queries of ‘how?'
rather than ‘what?' The establishment of hypotheses happens in
quantitative research, as opposed to qualitative research, which takes
place in natural settings.

3.2 Data collection

All of the information necessary for comprehension will be gathered

from various internet consumers. In order to carry out the study, a
digital poll was carried out using Facebook and e-mail accounts. And
the replies were compiled into a spreadsheet, after which additional
analysis was carried out.

The data gathering approach used in this specific study is comprised of

two types of information: primary data and secondary information.
When using secondary data, one must exercise caution since the
information may be skewed because the original data collector may
have highlighted just certain aspects of the information.

Page | 72
Another element might be that the data is outdated and the quality of
the data is uncertain, resulting in a partial image or another aspect.

3.2.1 Primary information

In the words of Saunders et al., primary research is defined as “data
acquired especially for the study endeavour undertaken.” Primary
research is also known as “original research” (2003: pp. 486).

In general, primary data is generated by any researcher in order to

solve a specific topic or issue at hand; the only disadvantage is that it
might be expensive and time-consuming to collect. Primary data may
be gathered in a variety of methods, including surveys, focus groups,
and observational studies.

The core data in this study is obtained through the use of a well-formed
questionnaire and a digital survey, both of which are conducted online.
Each question in the questionnaire is divided into two categories:
quantitative and qualitative multiple-choice questions, and the
respondents are asked to select the option that best meets their needs
from a list of multiple alternatives.

3.2.2 Secondary Information

Performing a thorough examination of the current secondary data is a
pre-requisite to the acquisition of primary data (Malhotra, 2005).
Second-hand data refers to information that has been gathered from
existing publications such as journal articles, reports, and statistics
from commercial and governmental agencies. This specific study relied
Page | 73
heavily on secondary data, which was largely gathered from marketing
publications that were previously available on the subject. The author
can have a better understanding of the perspective of Indian customers
about internet purchasing by using secondary data.

As a result of the research conducted, the primary data was examined

in conjunction with the reason and validation provided by the current
secondary data.

The data collection would be:

PRIMARY DATA: Questionnaire
SECONDARY DATA: Journals, Internet, newspaper etc.

3.3 Sample technique

Making a decision on a study sample is a crucial stage in any research

endeavour because studying complete populations is rarely efficient,
feasible, or ethically sound. The sampling technique employed in this
study is known as convenient sampling. The sample size is one
hundred. A tiny portion of anything that is supposed to be indicative of
the entire item, or a subset of a group of people in this study, basic
random sampling is being utilised to collect data.

3.3.1 Sample design

Customers from Delhi and the National Capital Region who shop
online are included in this study and are asked about their overall
happiness.
Page | 74
3.3.2 Data source
Both primary and secondary data sources would be employed in this
study.
Primary data is the most common sort of information that is used.

Page | 75
 4.
DATA ANALYSIS

AND

INTERPTATION

DATA ANALYSIS AND INTERPTATION

Page | 76
It is the goal of this chapter to achieve the study's purpose by critically
analysing the qualitative data gathered through in-depth interviews and
examination of the interviewee's replies and beliefs. This was
accomplished by the evaluation of the most pertinent replies provided
by the participants. When comparing the remarks provided by the
respondents with the literature review, the data has been analysed and
discussed in light of the study's research goal, which was to find out
what people thought. As a result, the reasoning behind this study is
dependent on the responses supplied by the respondents themselves.

The primary data for the study was collected through the use of a
questionnaire that was properly prepared. Following a systematic
organisation of the data from 100 respondents in tables and graphs, the
data was subjected to statistical analysis using the relevant statistical
techniques. The findings of the study are provided in the following part
in order to analyse the perception of customers towards online
shopping on Flipkart.com in India, and they are based on the findings
of the study.

As for this analysis, we will take into account two elements. That is:

• Demographical factors
• Behavioural factors

Demography:

Page | 77
1. Gender of Respondents:

Male Female Total

Responses 58 42 100

Percentage 58 42 100

Table 4.1: Gender wise respondents

Gender

42%

58% Male

Female

Graph 4.1: Gender wise respondents

Analysis and Interpretation:

Page | 78
According to the demographic profile, in this study, 70 percent of male
respondents and 30 percent of female respondents are members of my
target market, and they assist me in filling out my questionnaire by
providing information from various locations.

Bangalore is a city in India. The total number of responders from these

categories is 100. The results of the study show that male respondents
are more likely than female respondents to indicate that they are
interested in shopping online, despite the fact that both of them shop
online.

2. Age Group:

15 -25 25 -35 35 - 45 45 & above Total

No of respondents 63 24 12 1 100

Percentage 63 24 12 1 100

Table 4.2: Age wise respondents

Page | 79
 Graph 4.2: Age wise respondents

Analysis and Interpretation:

The data below indicates that 63 percent of respondents are

between the ages of 15 and 25, 24 percent are between the ages of
25 and 35, 12 percent are between the ages of 35 and 45, and 1
percent are between the ages of 45 and above. Overall, the results
suggest that respondents with an age range between 15 and 35 years
(63 percent + 24 percent = 87 percent) are more familiar with online
shopping than the rest of the respondents in my target group.

Page | 80
3. Occupation:

Table 4.3: Occupation wise respondents

Business House wife Salaried Student Total

person

No. of respondents 8 7 46 39 100

Percentage 8 7 46 39 100

Graph 4.3: Occupation wise respondents

Page | 81
Analysis and Interpretation:

Sixty-six percent of those who responded to this poll were salaried,

while 39 percent claimed to be students. As a result, they both
contributed to the majority of respondents' percentage (85 percent).
Housewives account for 7% of the population, whereas businesspeople
account for 8%. Salaried people and students are constantly on the
lookout for new technology and services that will improve their quality
of life.

4. Educational Qualification:

Table 4.4: Educational wise respondents

Graduate post SSC or Others

graduate Equivalent (PhD)

Number of respondents 63 36 0 1

Percentage 63 36 0 1

Graph 4.4: Educational wise respondents

Educational Qualifications
0% 1%

36%
Graduate
post graduate
63%
SSC or Equivalent
PhD
Page | 82
5. Annual Income:

Table 4.5: Income wise respondents

0- 3 L 3-6L 6-9L 9 & above

Number of respondents 60 23 13 4

Percentage 60 23 13 4

Graph 4.5: Income wise respondents

Annual Income
4%

13%

0- 3 L
23% 3-6L
60%
6-9L
9 & above

Analysis and Interpretation:

Because students account for 39 percent of those who participate in this

poll, the vast majority of them (60 percent) come from families with
incomes ranging between 0-3L. 23 percent of them earn between 3-6L,
13 percent earn between 6-9L, and 4 percent earn between 9 and above.
Page | 83
6) Frequency of purchase from online:

Table 4.6: online shopping usage

Always Often Sometimes Seldom Never Total

Male 5 21 29 3 0 58
Female 4 14 23 1 0 42
Total 9 35 52 4 0 100

Graph 4.6: online shopping usage

35
29
30

25 23
21
20
14
15

10
5 4
5 3
1 0 0
0
Always Often Sometimes Seldom Never

Male Female

Analysis and Interpretation:

More than half of them, or 52 percent, do some internet shopping on a

regular basis. People who usually or primarily purchase online are also
in good numbers, with 9 and 35 percent, respectively, accounting for
44 percent of the total. And the percentage of those who utilise internet
shopping just sometimes is quite small, at only 4%. Due to the fact that
just 44 percent of the population is primarily utilising this, there is a
significant amount of room to fill and make online shopping a huge
Page | 84
 success. Furthermore, there is little difference between males and
females when it comes to online buying, which indicates that both men
and women appreciate the convenience and benefits of online
shopping.

7)Mode of awareness about Flipkart.com:

Table 4.7: Modes of awareness about Flipkart

Word of Advertisements, Blog Links Promotional Search Total

Mouth newspapers, TV recomme- from emails engines (like
ndations other Google)
websites
No: of 39 22 2 15 5 17 100
respondents
Percentage 39 22 2 15 5 17 100

Page | 85
 45
39
40

35
word of mouth
30
advertisement
25 22
blog
20 17
15 links fron other websites
15
promotional emails
10 search engines
5
5 2
0
No of
respondents

Graph 4.7: Modes of awareness about Flipkart

Analysis and Interpretation:

They learned about Flipkart mostly through word of mouth (39

percent), followed by television and internet ads (28 percent) (22
percent). Customers who become aware of a product or service through
blog recommendations (2 percent) or promotional e-mails (5 percent)
are in the minority.

This indicates that positive communication about Flipkart is taking

place among friends and family members, demonstrating that the
company's word-of-mouth marketing approach is the most effective
method of getting people aware of their items. In order to gain more
customers, businesses must first create satisfied customers who will act
as advocates for their products. There is a large scope for other digital
advertisement techniques such as search engine marketing, email
marketing, providing links, and blog recommendations to achieve this
goal.
Page | 86
8) Frequency of usingFlipkart.com while online purchasing:

Graph 4.8: Frequency of using Flipkart

Every Occasionally Most of the Hardly Total

time time ever
No: of 17 45 32 6 100
respondents
Percentage 17 45 32 6 100

Graph 4.8: Frequency of using Flipkart

No: of respondents
50
45
45
40
35
32
30
25
No: of respondents
20 17
15
10
6
5
0
Every time Occasionally Most of the time Hardly ever

Analysis and Interpretation:

According to the results of this study, 17 percent of respondents always

use Flipkart for online shopping, while 45 percent use it occasionally.
Page | 87
Members who use it just occasionally are in the minority, with 32
percent claiming to use it most of the time. Due to the fact that more
than half of them choose Flipkart when it comes to online buying, it
indicates that the company's branding efforts, whether via ads, services,
or giving a positive customer experience, were effective.

9) Category that mostly prefer to buy from Flipkart.com:

Graph 4.9: Category mostly prefer to buy from Flipkart

Electronics Apparels & Books, Stationaries Healthcare Home & Total

Accessories Movies & Kitchen
personal
& Music items
care

No: of 39 20 30 3 4 4 100
respondent
s

Percentage 39 20 30 3 4 4 100

Graph 4.9: Category mostly prefer to buy from Flipkart

No. of respondents
45
40
35
30
25
20
15
10
5
0
Electronics Apparels & Books, Movies & Stationaries Health Care Home Items
accessories Music
No. of respondents

Page | 88
Analysis and Interpretation:

Electronics, books and stationery, apparel and accessories, cameras,

watches, and other goods (bags, belts, and so on) are among the most
often purchased items. A total of 39 percent of respondents stated that
they liked to purchase electronic products, followed by books and
stationery (30 percent) and apparel and accessories (20 percent). Books
and stationery, as well as technological products, are more popular
among students, which may explain the huge number of purchases of
those things from Flipkart.com in recent months.

10) Reason for customer’s preference on Flipkart.com than others:

Table 4.10: Customers expecting feature of Flipkart

Fast Availability After Sales Easy Portal Total

Delivery Services Payment Features
options

Responses 41 29 8 17 5 100

Percentage 41 29 8 17 5 100

Page | 89
 Responses
45

40
41
35

30
29
25

20 Responses

15 17

10
8
5
5
0
Fast Delivery Availability After Sales Easy Payment Portal Features
Services options

Graph 4.10: Customers expecting feature of Flipkart

Analysis and Interpretation:

When compared to other online shopping platforms, one of the most

efficient characteristics of Flipkart is the speed with which orders are
delivered. As a result, most users favour this website for purchasing
because they believe it offers rapid delivery (41 percent) and product
availability (29 percent), followed by convenient payment choices (17
percent). In addition, when compared to other features, there is room to
expand after-sales services and portal capabilities.

Page | 90
11) Product selection from the categories given by Flipkart.com:

Table 4.11: On the basis where product is chosen

Rating of the Discounts and Review about the Brand of the Total
product features product product

No: of 14 48 26 12 100
Responses

Percentage 14 48 26 12 100

Graph 4.11: On the basis where product is chosen

No: of Responses
60

50
48
40

30
No: of Responses
26
20

10 14
12

0
Rating of the Discounts and Review about the Brand of the
product features product product

Page | 91
Analysis and Interpretation:

The opinion of customers when using Flipkart differs; it is one of the

online shopping sites that offers substantial discounts and promotions.
When it comes to purchasing items from Flipkart, the vast majority of
respondents (48 percent) are searching for a well-featured product with
substantial savings. And shoppers are more likely than ever before to
read product reviews (26 percent) before making a purchasing choice.
Product review is a type of word-of-mouth technique in which product
users offer their feedback on their shopping experiences with Flipkart
in the form of a review. Customers prioritize these two characteristics,
with the brand of the goods (12 percent) and the rating of the product
(14 percent) also receiving consideration from certain customers.

12) Rating of services on Flipkart.com (in a scale of Excellent,

Good, Average, below average, Poor)

Table 4.12: Rating of Flipkart services

Excellent Good Average Below Poor

Average

Cash on delivery 46 45 5 2 2

30 days replacement 23 55 20 2 0
policy

EMI options 21 48 25 5 1

Free shipping 35 34 17 12 2

Page | 92
 Graph 4.12: Rating of Flipkart services

Analysis and Interpretation:

For cash on delivery service, 46 percent of respondents gave it an

outstanding rating, while for the 30-day replacement policy, 55 percent
gave it a good rating and 23 percent gave it an excellent rating. For
EMI choices, 48 percent of respondents gave a decent rating, while 21
percent gave an outstanding rating, and for free delivery, 35 percent
gave an excellent rating.

According to the research, buyers are particularly interested in two

Flipkart services: the 30-day replacement policy and the EMI choices.
Page | 93
Due to the fact that Flipkart offers a 30-day replacement guarantee for
all of the items available on the marketplace. In addition, this
combination mix service enhanced the level of client confidence. When
it comes to EMI choices, Flipkart is the only website that takes all
major credit cards, allowing users to make more informed purchasing
decisions. In addition, consumers are quite happy with the cash on
delivery service that is offered to them. Even those who gave a lower
rating to this service may have done so because they had a less
customised experience with cash on delivery.

If you want free delivery, Flipkart only offers this service for purchases
totalling rupees 300 or more on their website. As a result, it may have
an impact on some customers who purchase lower-priced items on a
regular basis.

13) Issues faced by customers while shopping in Flipkart.com

Table 4.13: Issues faced when purchased from Flipkart

Replaceme
Out of Payment Delay in Faulty No Others Total
nt
stock issues issues Delivery product issues

No of 37 6 6 12 8 30 1 100
Response
s

Percentag 37 6 6 12 8 30 1 100
e

Page | 94
 Graph 4.13: Issues faced when purchased from Flipkart

No of respondents

40
35
30
25
20
15
10
5
0

No of respondents

Analysis and Interpretation:

According to the results of this study, 30% of consumers did not

experience any of the difficulties listed above, while 37% of customers
had an out-of-stock situation. This is a severe problem that the majority
of consumers are experiencing. Since discounts and features are the
one feature that the majority of consumers are seeking for, when a
decent product with a large discount is presented on the Flipkart
platform, buyers rush to get their hands on it as soon as they are able.
As a result, the items will be unavailable for purchase.

When the product became available, Flipkart began alerting consumers

that it was available for purchase.

Page | 95
Since Flipkart offers a variety of payment methods, such as EMI
choices, card payments, Cash on delivery, Wallet payments, and so on,
consumers have reported less payment and replacement difficulties (a
total of 12 percent). Customers have expressed satisfaction with these
payment options. In the event of replacement, just a few difficulties
have occurred, indicating that the vast majority of customers are happy
with the service.

Delivery delays occur as a result of problems with the shipping and

courier services. There is an issue with the supply chain. The majority
of the time, this occurs towards the end of the supply chain and in rural
locations where courier services are less prevalent.

In addition, 8 percent of consumers had faulty product issues, and one

of the measures implemented by Flipkart to address this issue is a 30-
day product replacement policy.

14) Recommending this website to others:

Table 4.14: Recommending Flipkart to others

Yes No Total

No: of 95 5 100

Responses

Percentage 95 5 100

Page | 96
 Graph 4.14: Recommending Flipkart to others

Analysis and Interpretation:

Most of them (95 percent) said they would be delighted to suggest

Flipkart to others, such as their friends and family members. In
addition, word of mouth PR is showing signs of success, which is one
of the many benefits Flipkart has over its competitors.

15) Customer’s rating about services onFlipkart.com: (in a scale of

5, 5 as highest and 1 as least)

Table 4.15: Rating the experience from Flipkart

1 2 3 4 5 Total

No of 7 11 16 49 17 100
Responses

Percentage 7 11 16 49 17 100
Page | 97
 Graph 4.15: Rating the experience from Flipkart

Analysis and Interpretation:

Flipkart delivers a good and exceptional experience to the majority of

its consumers, according to an analysis of the ranking of experiences
.
Mode of given data: 4 & Median of given data: 4

49% of customers rated 4 as the experience and more than half of the
population (66%) rated 4 & 5 as experience.

Page | 98
16) Satisfaction of customers while Flipkart services are used:

Table 4.16: Satisfaction on services of Flipkart

Yes No Total

No: of responses 81 19 100

Percentage 81 19 100

Graph 4.16: Satisfaction on services of Flipkart

Analysis and Interpretation:

Flipkart's service has received positive feedback from 81 percent of the people.
This assists Flipkart in retaining consumers while also demonstrating that the
company's branding and marketing strategies have been successful as well.

Page | 99
 FINDINGS:

 When it comes to internet buying, there is little difference between

men and women.
 Students and paid individuals are the most regular consumers of
Flipkart, according to data.
 Electronics, books, and music, as well as clothes and accessories,
are purchased more frequently on Flipkart than anywhere else.
 Because many individuals were made aware of this website by their
friends and family when consumers recommended it to them, word
of mouth was more influential in the marketing of this website.
 When buyers notice a large discount on a good-featured product,
they purchase it as soon as they can. As a result, highly discounted
items sold out rapidly.
 It is important to note that the services supplied by Flipkart are
excellent, and that there is even more room for improvement in
terms of growing customer strength.
 Digital marketing tactics such as search engine marketing, linking
to other websites, and advertising were also effective in promoting
this website's visibility.
 One of the greatest services offered by Flipkart is its lightning-fast
shipping.

Page | 100
 The variety of payment alternatives offered on Flipkart has
increased customer satisfaction and ease of payment while
purchasing products on the site.
 Because of the many rules and services offered by Flipkart,
customers report feeling more secure while making purchases
through the company.
 When compared to competitors, Flipkart charges free shipping for
purchases of 300 rupees or more, whilst others offer the service
without any restrictions or limitations.
 The most serious problem that Flipkart is experiencing is a lack of
inventory.
 When it comes to purchasing items, the majority of customers have
a positive experience with Flipkart.
 The majority of them are pleased with Flipkart's services, and as a
result, the company is successful in keeping consumers.
 The use of advertising is an effective method of making a brand and
its products more familiar to consumers.
 Convenience and time savings are two significant elements that
customers look for when making a purchase over the internet.

Page | 101
 5.
CONCLUSIONS

Page | 102
 CONCLUSIONS

 The comprehensive study is based on consumer behaviour

analysis, which provides a fantastic insight into how consumers
perceive online purchasing when they do it. To be content,
consumers consider a variety of factors before making a
purchase, and they will be happy if the firm meets their
expectations.

 It has a strong overall brand value, although it is up against stiff

competition from worldwide companies such as Ebay and
Amazon. • Flipkart has a strong overall brand value. For the
Indian market, it is the most outstanding E-business site that is
aggressively developing and planting its roots deep into the
Indian market, while also moving people's purchasing habits
away from physical stores and towards online businesses, which
is fantastic!

 Concentrate your efforts on customers and create memorable

experiences for them.

Page | 103
 RECOMMENDATIONS:

 Flipkart has effectively established itself in the minds of its

customers, establishing it as India's largest online retailer with a
diverse product offering. The company must, however, continue
to focus on its core competency, which is books and stationery
goods.

 By picking an appropriate courier provider that offers services in

the customer's region for dispatching an item, delivery services,
particularly in remote areas, may be significantly enhanced.

 We are able to provide free shipping on all of our items.

 More promo codes and gift vouchers might be included in order

to increase the number of visitors received by the website.

 Out-of-stock products can be made available as quickly as

possible, and the appropriate consumers can be notified.

 Companies should search for international/overseas markets as

well as markets in neighboring countries.

 Critical mass of Internet users - As the number of Internet users

in India continues to grow at an alarming rate, Flipkart will be
able to target more and more cities, including not just tier 1 and 2
but also tier 3 and 4 cities, resulting in a stronger client base and
more profits.

 Clearing should concentrate on growing its online apparel

business, and it has the potential to diversify into the apparel
market either organically or inorganically by purchasing more
portals.

Page | 104
 User Experience: The portal should strive to continually improve
the user experience by incorporating more and more creative
elements into the website, such as a virtual shopping basket and
virtual trial rooms, as time goes on. The final winner in this
competitive world of user experience differentiation would be the
Indian internet customer, who will emerge victorious in the end.

 Organizations should make significant investments in electronic

customer relationship management (ECRM) and online
reputation management (ORM).

 Logistics and supply chain management can strive to shorten the

delivery cycle time on a continual basis.

 As a result of Amazon's size and ability to employ economies of

scale to eliminate competitors from the market, price will
continue to be an issue. As such, they must be more competitive
in this area.

Page | 105
 6.
BIBLIOGRAPHY:
BOOKS:

 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 ed.).
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.


Remenyi, D., Williams, B., Money, A. and Swartz, E. (1998),
“Doing Research in Business and Management”, Sage
Publications, London.

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.

Page | 106
  ANALYSIS OF CONSUMER BEHAVIOUR ONLINE Author:
Dejan Petrovic

 HOT BARGAINS: TIPS TO FIGURE OUT TRAPS FROM THE

REAL VALUE DEALS

 SUSHMITA CHOUDHURY AGARWAL, ET Bureau Apr 22,

2013 (The Economic Times)

WEBSITES:
www.Flipkart.com
www.commodityindia.com
www.marketoperation.com
www.nextbigwhat.com
www.britannica.com
en.kioskea.net
www.ecommerce-land.com
www.commodityindia.com
www.marketoperation.com

Page | 107