Research

Methodology Assignment

Question 1. Identify a relevant business problem, gather support from

literature to identify research
gap. Now, develop a research proposal based on the research
gap.

Answer: - Research Proposal: Addressing the Customer Retention Gap in E-

commerce Businesses through Personalized Recommendation Systems

Introduction
The rise of e-commerce has revolutionized the way businesses operate,
offering convenience, a wide range of options, and easy access to products and
services. However, one of the significant challenges faced by e-commerce
businesses is customer retention. With intense competition and ever-increasing
customer expectations, it has become crucial for businesses to retain
customers to ensure long-term success and profitability. This research proposal
aims to address the gap in existing research by exploring the effectiveness of
personalized recommendation systems in enhancing customer retention in e-
commerce businesses.

Problem Statement
Customer retention is a critical factor for the sustained growth of e-commerce
businesses. High customer churn rates not only lead to revenue loss but also
require significant resources to acquire new customers. While various
strategies have been employed to improve customer retention, such as
targeted marketing campaigns and loyalty programs, the potential of
personalized recommendation systems remains underutilized. The existing
research has focused on the impact of personalized recommendations on sales
and customer satisfaction, but there is a lack of comprehensive studies
exploring their influence on customer retention.

Literature Review
The literature review will provide an overview of the existing research related
to e-commerce customer retention strategies, personalized recommendation
systems, and the gap that this research proposal aims to address. Key points to
consider in the literature review include:

a. Importance of customer retention in e-commerce businesses

b. Existing strategies for improving customer retention
c. Role of personalized recommendation systems in e-commerce
d. Effectiveness of personalized recommendations on sales and customer
satisfaction
e. Research gap: Limited studies on the impact of personalized
recommendations on customer retention

Research Objectives
The research proposal aims to achieve the following objectives:

a. To examine the impact of personalized recommendation systems on

customer retention in e-commerce businesses.
b. To identify the factors influencing the effectiveness of personalized
recommendations in improving customer retention.
c. To propose strategies for optimizing personalized recommendation
systems to enhance customer retention.

Methodology
To achieve the research objectives, the following research methodology will be
adopted:

a. Data collection: Gather customer data, transaction history, and

personalized recommendation logs from a selected e-commerce business.
b. Experimental design: Randomly assign customers to control and treatment
groups, where the treatment group receives personalized recommendations.
c. Data analysis: Analyze the customer retention rates, repeat purchase
behavior, and customer satisfaction metrics for both groups.
d. Statistical analysis: Conduct statistical tests (e.g., t-tests, chi-square tests)
to measure the significance of the findings.
e. Qualitative analysis: Conduct interviews or surveys with customers to
gather qualitative insights on their perception of personalized
recommendations and their impact on retention.
f. Data interpretation: Analyze the quantitative and qualitative findings to
draw conclusions and develop recommendations for improving customer
retention through personalized recommendations.

Expected Outcomes
The research expects to find a positive relationship between personalized
recommendations and customer retention in e-commerce businesses. The
study aims to identify the key factors influencing the effectiveness of
personalized recommendations and provide practical strategies for businesses
to optimize their recommendation systems to enhance customer retention.

Conclusion
This research proposal seeks to address the research gap in the impact of
personalized recommendation systems on customer retention in e-commerce
businesses. By conducting a comprehensive study using a combination of
quantitative and qualitative analysis, this research aims to contribute to the
existing body of knowledge and provide practical insights for businesses to
improve customer retention and drive long-term success in the e-commerce
industry.

Question 2. What is meant by a dependent variable? Identify the one from

the following theoretical
model. State any six hypotheses from this model. Identify the mediating and
moderating variable.

Answer: - A dependent variable is a variable in a research study that is

expected to be influenced or affected by other variables in the study. It is the
outcome variable that researchers seek to explain or predict based on the
independent variables.

However, I can provide you with an example of possible hypotheses related to

the intention to use eWallet :

H1: Individuals with higher perceived convenience of eWallets will have a

higher intention to use eWallets.
This hypothesis suggests that people who perceive eWallets as convenient
payment methods are more likely to have the intention to use them.
Convenience can refer to factors such as ease of use, accessibility, and speed of
transactions.

H2: The perception of eWallet security will positively influence the intention to
use eWallets.
Here, the hypothesis states that if individuals perceive eWallets as secure, they
will be more inclined to use them. Security includes aspects such as protection
against fraud, secure transactions, and data privacy.

H3: The perception of eWallet usefulness will positively impact the intention to
use eWallets.
This hypothesis proposes that if individuals perceive eWallets as useful in their
daily lives, they will be more motivated to use them. Usefulness can refer to
advantages such as simplified financial management, convenience in making
transactions, and accessing various services through the eWallet.

H4: Individuals with higher social influence regarding eWallets will have a
higher intention to use eWallets.
This hypothesis suggests that if individuals perceive that others around them,
such as friends or family, have a positive attitude towards eWallets and actively
use them, it will influence their own intention to use eWallets. Social influence
plays a role in shaping individual behaviors and choices.

H5: The perception of eWallet compatibility with existing payment methods

will positively affect the intention to use eWallets.
Here, the hypothesis states that if individuals perceive eWallets as compatible
with their existing payment methods, such as credit cards or bank accounts,
they will be more likely to adopt and use eWallets. Compatibility ensures a
seamless transition and integration with their existing financial systems.

H6: The perception of eWallet affordability will positively influence the

intention to use eWallets.
This hypothesis suggests that if individuals perceive eWallets as affordable and
cost-effective compared to traditional payment methods, they will be more
inclined to use them. Affordability can include factors such as transaction fees,
discounts, and rewards associated with eWallet usage.
H7: Perceived transaction security of eWallets positively influences the
intention to use eWallets.
Similar to H2, this hypothesis focuses specifically on the impact of perceived
transaction security on the intention to use eWallets. If individuals perceive
that their transactions are secure and protected when using eWallets, they will
be more motivated to use them.

H8: Perceived customer support and assistance provided by eWallet providers

positively affects the intention to use eWallets.
This hypothesis suggests that if individuals perceive eWallet providers as
offering good customer support and assistance, they will be more likely to have
the intention to use eWallets. Positive experiences with customer service can
enhance trust and confidence in the eWallet service.

H9: Perceived convenience of cashless transactions positively predicts the

intention to use eWallets.
This hypothesis emphasizes the role of perceived convenience of cashless
transactions, in general, as a predictor of the intention to use eWallets. If
individuals perceive cashless transactions as convenient compared to cash-
based transactions, they are more likely to have the intention to use eWallets.

H10: Perceived compatibility of eWallets with existing financial systems

positively influences the intention to use eWallets.
Similar to H5, this hypothesis focuses on the impact of perceived compatibility
with existing financial systems on the intention to use eWallets. If individuals
perceive that eWallets seamlessly integrate with their current financial
systems, they will be more motivated to use eWallets.
To determine the mediating and moderating variables, again, we would need
more information about the theoretical model. Mediating variables are those
that explain the relationship between the independent and dependent
variables. Moderating variables are those that influence the strength or
direction of the relationship between the independent and dependent
variables.
H11: Perceived innovation and novelty of eWallets positively affects the
intention to use eWallets.
This hypothesis suggests that if individuals perceive eWallets as innovative and
novel compared to traditional payment methods, it will positively influence
their intention to use eWallets. The perception of eWallets as cutting-edge
technology or a modern payment solution can generate interest and
motivation to adopt them.

H12: Perceived accessibility and availability of eWallet services positively

predicts the intention to use eWallets.
Here, the hypothesis states that if individuals perceive eWallet services to be
easily accessible and widely available, it will positively predict their intention to
use eWallets. Factors such as the number of merchants accepting eWallets or
the availability of eWallet services across various platforms can impact the
perceived accessibility.

Overall, these hypotheses highlight different factors that may influence an

individual's intention to use eWallets. Perceptions related to convenience,
security, usefulness, compatibility, affordability, social influence, transaction
security, customer support, cashless transactions, compatibility with existing
systems, innovation, and accessibility all play a role in shaping individuals'
attitudes and intentions towards adopting and using eWallets.

Mediating Variable:

A possible mediating variable could be "Attitude towards eWallets." This

variable may explain the relationship between independent variables (such as
perceived compatibility, innovation, accessibility) and the intention to use
eWallets.

Moderating Variable:
One potential moderating variable could be "Technological expertise." It might
influence the strength or direction of the relationship between the
independent variables and the intention to use eWallets. For example,
individuals with higher technological expertise may perceive innovation as
more appealing, leading to a stronger relationship between perceived
innovation and intention to use eWallets for this group compared to individuals
with lower technological expertise.

Please note that these hypotheses, mediating variables, and moderating

variables are provided as examples and may not encompass all possible
variables and relationships in a specific theoretical model. The actual variables
and their roles may differ based on the specific model and research context.

conclusion

In conclusion, the dependent variable in a research study is the outcome

variable that researchers seek to explain or predict based on the independent
variables. However, without specific information about the theoretical model
of intention to use eWallet provided, it is not possible to identify the
dependent variable from the given information.

Nevertheless, I provided several hypotheses related to the intention to use

eWallet, such as perceived convenience, security, usefulness, social influence,
compatibility, and affordability. These hypotheses represent potential factors
that may influence individuals' intention to use eWallets.

In terms of mediating and moderating variables, one possible mediating

variable could be "Perceived usefulness of eWallets," which may explain the
relationship between independent variables and the intention to use eWallets.
Additionally, a potential moderating variable could be "Age," which could
influence the strength or direction of the relationship between the
independent variables and the intention to use eWallets.

It's important to note that the specific variables and relationships within a
theoretical model may vary depending on the research context and the model
itself. The hypotheses, mediating variables, and moderating variables provided
earlier were examples to illustrate the concept, and the actual variables and
relationships may differ based on the specific model and empirical research in
the field.

Question 3 (A). Develop a questionnaire to survey the consumer and collect

their response on what
factors might be responsible for consumer’s interest in online food buying.

Answer: - Here's a questionnaire that can be used to survey consumers and

collect their responses on the factors responsible for their interest in online
food buying:

1. Demographic Information:
a. Age:
b. Gender:
c. Occupation:
d. Monthly Income:
e. Location:

2. Online Food Buying Experience:

 a. Have you ever purchased food online?
Yes
No

b. How frequently do you order food online?

Rarely (once a month or less)
Occasionally (2-3 times a month)
Frequently (4-6 times a month)
Very frequently (more than 6 times a month)

c. Which online food delivery platforms have you used before? (Select all that
apply)
Swiggy
Zomato
Uber Eats
Foodpanda
Nykaa (if applicable)
Other (please specify)

d. On a scale of 1 to 5, how satisfied are you with your overall online food
buying experience?
1 (Not satisfied at all)
2
3
4
5 (Very satisfied)
 3. Factors Influencing Online Food Buying:
Please rate the following factors based on their importance in influencing
your decision to buy food online. Use a scale of 1 to 5, where 1 represents "Not
Important" and 5 represents "Very Important."

a. Convenience (ease of ordering, quick delivery, etc.)

b. Variety of food options
c. Price affordability
d. Quality of food
e. User reviews and ratings
f. Promotions and discounts
g. Customer service and support
h. Brand reputation and trustworthiness
i. Availability of healthy food options
j. Seamless payment options

4. Preferred Food Delivery Features:

a. What features do you consider important when choosing an online food
delivery platform? (Select all that apply)
Tracking orders in real-time
Customizable food preferences (dietary restrictions, allergens, etc.)
Personalized recommendations based on past orders
Restaurant ratings and reviews
In-app chat support for query resolution
Loyalty programs and rewards
Social media integration for sharing food experiences
Other (please specify)
 5. Concerns and Challenges:
a. What are the major concerns or challenges you face while ordering food
online?
b. How do you think Nykaa can address these concerns and challenges?

6. Future Interest:
a. Would you be interested in using Nykaa for food delivery services?
Yes
No
Maybe

b. If yes or maybe, what specific factors would make you more likely to use
Nykaa for food delivery?

7. Offline Food Buying Habits:

a. Do you regularly purchase food from offline stores or restaurants?
Yes
No

b. If yes, what are the primary reasons for your offline food purchases?
(Select all that apply)
Immediate consumption
Preference for dining out
Socializing with friends/family
 Lack of trust in online food ordering
Other (please specify)

8. Influences on Decision-Making:
a. How much do the following factors influence your decision to order food
online? Please rate on a scale of 1 to 5, where 1 represents "Not Influential"
and 5 represents "Highly Influential."

i. Recommendations from friends or family

ii. Online advertisements
iii. Social media promotions
iv. Celebrity endorsements
v. Discounts and offers

9. Preferred Cuisine and Food Categories:

a. What type of cuisine or food categories do you usually order online?
(Select all that apply)
Indian
Chinese
Italian
Fast food (Burgers, Pizza, etc.)
Healthy options
Desserts and sweets
Other (please specify)

10. Delivery Experience:

 a. How important are the following factors in determining your satisfaction
with the food delivery experience? Please rate on a scale of 1 to 5, where 1
represents "Not Important" and 5 represents "Very Important."

i. Timely delivery
ii. Packaging quality
iii. Order accuracy
iv. Courteous delivery personnel

11. Mobile App Usage:

a. Do you primarily use a mobile app or a website to place online food
orders?
Mobile app
Website
Both

b. How likely are you to download and use a dedicated Nykaa food delivery
app?
Very likely
Somewhat likely
Not likely

12. Cross-Promotion Potential:

a. Would you be interested in exploring food options offered by Nykaa while
shopping for beauty or personal care products on their platform?
Yes
No
Maybe
 13. Customer Loyalty:
a. How likely are you to switch to Nykaa's food delivery service if they offer
exclusive benefits or discounts to existing Nykaa customers?
Very likely
Somewhat likely
Not likely

14. Additional Comments:

Please share any additional comments or suggestions you have regarding

online food buying or Nykaa's potential expansion into food delivery.

Thank you for your participation! Your responses will be highly valuable for our
research.

Question 3 (B). Assume you have to conduct an interview. Who will be ideal
respondent for the
interview? How will you approach them?

Answer: - Conducting interviews can provide in-depth insights and a deeper

understanding of consumer behavior and preferences. In the context of
Nykaa's expansion into food delivery, an ideal respondent for the interview
would be someone who frequently orders food online and has experience
using various online food delivery platforms.
Approaching potential respondents for interviews can be done through the
following steps:

Identify target respondents: Look for individuals who match the ideal
respondent profile mentioned above. They can be selected from Nykaa's
existing customer database or through online food delivery platforms or social
media groups focused on food enthusiasts.

Reach out to potential respondents: Send a personalized message or email

to the identified individuals, explaining the purpose of the interview and how
their insights can contribute to Nykaa's expansion plans. Clearly mention that
their participation is voluntary, and their responses will be kept confidential.

Schedule the interview: Once the potential respondents express their

interest, schedule a convenient time and mode of communication for the
interview. This can be conducted through phone calls, video calls, or face-to-
face meetings, depending on the respondent's preference and feasibility.

Prepare interview questions: Develop a set of open-ended questions that

will allow respondents to provide detailed answers and share their
experiences, preferences, and suggestions regarding online food buying. The
questions should be focused on understanding factors influencing their
decision-making, their expectations from online food delivery platforms, and
any challenges they may have faced.

Conduct the interview: Begin the interview by thanking the respondent for
their participation and briefly reiterating the purpose of the interview.
Encourage them to share their thoughts openly and assure them that there are
no right or wrong answers. Listen actively, take notes, and ask follow-up
questions to delve deeper into specific points or seek clarification.
 Analyze and interpret responses: After the interview, review and analyze the
responses to identify common themes, patterns, and valuable insights. These
findings can help Nykaa make informed decisions regarding their food delivery
expansion strategy.

Remember to maintain professionalism and respect respondents' time and

opinions throughout the interview process. Thank them for their participation
and willingness to share their valuable insights, as their contribution will help
shape Nykaa's future endeavors in the food delivery space.