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“A STUDY ON ONLINE BUYING BEHAVIOR AMONG

YOUTH IN FLIPKART WITH REFERENCE TO


THRISSUR DISTRICT”

PROJECT REPORT
Submitted in partial fulfillment of the requirement for the
Award of degree of

BACHELOR OF BUSINESS ADMINISTRATION


UNIVERSITY OF CALICUT

Submitted by,
ARSHA RAJ V (STATBBAR02)

Under the guidance of,


MS. K V BAVISREE
Assistant Professor

DEPARTMENT OF MANAGEMENT STUDIES


ST. MARY’S COLLEGE, THRISSUR
2019-2022
ST MARY’S COLLEGE, Thrissur 680 020
Phone: 0487-2333485, Fax: 0487-2334785, E-Mail smctsr@gmail.com,
Website: http://www.stmaryscollegethrissur.edu.in

Established in 1946, NAAC: A+ Grade (3.41) – Fourth Cycle

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

It is certified that the project work entitled “ONLINE BUYING


BEHAVIOR AMONG YOUTH IN FLIPKART WITH
REFERENCE TO THRISSUR DISTRICT” submitted by
Miss ARSHA RAJ V (STATBBAR02) for the partial fulfillment of
Degree of Bachelor of Business Administration offered by University of
Calicut, is a Bonafede work carried out by the student under my
supervision, and this work has not formed the basis for the award of any
degree, Diploma or such other titles.

Faculty Guide & External Examiner


Head of the Department
Ms. K V Bavisree
DECLARATION

I, ARSHA RAJ V student of BBA course, of St. Mary’s College, Thrissur,


affiliated under the University of Calicut, do hereby declare that the Project
Report entitled “ONLINE BUYING BEHAVIOR AMONG YOUTH IN
FLIPKART WITH REFERENCE TO THRISSUR DISTRICT” is
submitted in partial fulfillment for the award of the degree of Bachelor of
Business Administration program under the guidance and supervision of
Ms. K V Bavisree, Faculty Member of Department of Management
Studies at St. Mary’s College, Thrissur.

This project report is prepared during the academic year 2021-2022. This
is my original work and its results are not submitted for the award of any
other degree, diploma, or fellowship under similar title to any other
university.

Date: ARSHA RAJ V

Place: Thrissur
ACKNOWLEDGEMENT

First of all, I am thankful to God Almighty for all the blessings throughout
my life and for helping me to do this project in a successful manner. I wish
to express my deep sense of gratitude to my college (St. Mary’s College,
Thrissur) and Principal, Sr. Dr. MAGIE JOSE for supporting me. I am
very much grateful to my research guide, Ms. K V BAVISREE, Head of
the Department of Management Studies for being a constant
encouragement, for correcting my errors and providing me with all possible
support throughout my project.

Above all I am thankful to my parents for providing me with all the


necessities needed for my project work and for their encouragement and
support. I also thank my friends for their support.

Date: ARSHA RAJ V


Place: Thrissur
TABLE OF CONTENTS

Sl.NO. TITLE PAGE NO.

CHAPTER 1 INTRODUCTION 1-5


1.1 Title of the study 3
1.2 Statement of the problem 3
1.3 Objectives of the study 3
1.4 Research Methodology 3
1.5 Period of study 5
1.6 Tools of Analysis 5
1.7 Limitations of the study 5
CHAPTER 2 PROFILES 6-27
2.1 Industry Profile 7
2.2 Company Profile 18
REVIEW OF LITERATURE
CHAPTER 3 AND THEORETICAL 28-48
FRAMEWORK
DATA INTERPRETATION
CHAPTER 4 49-74
AND ANALYSIS
FINDINGS, SUGGESTIONS
CHAPTER 5 75-
ANDCONCLUSION
5.1 Findings 76
5.2 Suggestions 78
5.3 Conclusion 79
BIBILIOGRAPHY 80
APPENDIX 82
LIST OF TABLES
Sl.NO. TITLE PAGE NO.
4.1 Income scale 50
4.2 Online purchaser 51
4.3 Preference of online app for shopping 52
4.4 Frequently purchased product 53
4.5 Amount that spent on single purchase 54
4.6 Years of being as a flipkart customer 55
4.7 Product buy in a single purchase 56
4.8 Online shopping frequency. 57
4.9 Opinion about flipkart shopping 58
4.10 Problems faced during online purchasing 59
4.11 Service satisfaction level of delivery boy 60
4.12 Delivery Time 61
4.13 Total product quality on flipkart 62
4.14 Complaints towards flipkart 63
4.15 Getting products on time 64
4.16 Safety measures taken by flipkart 65
4.17 Satisfaction on Product Quality 66
4.18 Familiarity among peers 67
4.19 Quality of discounted products 68
4.20 Flipkart purchasing factors 69
4.21 Deliver Non-Defective Products 70
4.22 Availability to your location 71
4.23 Buying behavior during covid pandemic 72
4.24 Price Comparison Online market v/s
73
Traditional market
4.25 Recommendation of flipkart to your friends &
74
relatives
LIST OF CHARTS
Sl.NO. TITLE PAGE NO.
4.1 Income scale 50
4.2 Online purchaser 51
4.3 Preference of online app for shopping 52
4.4 Frequently purchased product 53
4.5 Amount that spent on single purchase 54
4.6 Years of being as a flipkart customer 55
4.7 Product buy in a single purchase 56
4.8 Online shopping frequency. 57
4.9 Opinion about flipkart shopping 58
4.10 Problems faced during online purchasing 59
4.11 Service satisfaction level of delivery boy 60
4.12 Delivery Time 61
4.13 Total product quality on flipkart 62
4.14 Complaints towards flipkart 63
4.15 Getting products on time 64
4.16 Safety measures taken by flipkart 65
4.17 Satisfaction on Product Quality 66
4.18 Familiarity among peers 67
4.19 Quality of discounted products 68
4.20 Flipkart purchasing factors 69
4.21 Deliver Non-Defective Products 70
4.22 Availability to your location 71
4.23 Buying behavior during covid pandemic 72
4.24 Price Comparison Online market v/s
73
Traditional market
4.25 Recommendation of flipkart to your friends &
74
relatives
Consumer Behaviour Flipkart

CHAPTER-1

INTRODUCTION

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INTRODUCTION

The intervention of internet brought tremendous change in the conventional


way of shopping. A customer is no more restricted to timings or specific
locations. He can shop irrespective of time, place and purchase whatever he
wishes. E-commerce has become one of the central characteristics of internet
age. Online shopping is the third most popular internet activity right after e-
mail and web browsing according to UCLA Centre for communication policy.
The growth of online shopping has opened the door of opportunity to attain
and provide a competitive advantage between firms.

This research mainly deals with analyzing the online buying behavior among
youth in reference to Thrissur district at flip kart. In these days online buying
behavior is higher than traditional shopping. It is because of the convince to
use, and the development of technology has an greatest impact on online
buying behavior. Now a days all are depended on internet for everything
especially for shopping. Here we are considering the age category of youth to
study the buying behavior. Youth as those persons between the age of 15 and
24 years. These age group of people contain a impulse buying behavior. They
will not rethink if it is needed or not, they just click and buy whatever they
want.

Here we are only considering some youth people from Thrissur district. There
are many factors that leads or attracts the customer towards the buying
process. In the case of Flip kart they are providing attractive offers and
discounts for customers as their marketing strategy. They focus on some
seasons and making popular ads and attract youth towards them. They are
providing BIG BILLION DAYS named season it will provide more discounts
these factors will attract and increase the desire to buy a particular product

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from their site. They always maintain their customers by providing discounts
or coupons like that.

1.1 TITLE OF THE STUDY


“ONLINE BUYING BEHAVIOR AMONG YOUTH IN FLIPKART
WITH REFERENCE TO THRISSUR DISTRICT”
1.2 STATEMENT OF PROBLEM
The study Identify the factors influence the impulse buying of product in
youth. Impulse buying means unplanned purchasing decisions made just
before the purchase. The main factors influencing the urge to buy are
discount, seasonal sales, change in taste of product method.

1.3 OBJECTIVES OF THE STUDY


Primary objective
• To know the online buying behavior of youth in Thrissur district.
Secondary objective
• To find out the factors responsible for online impulse buying.
• To examine which gender made more purchase on online shopping

1.4 RESEARCH METHODOLOGY


It Is a method or technique used for analyzing and solving a problem. The
research will be explanatory as well as descriptive and analytical in nature, as
it will use both primary and secondary data.
1.4.1 RESEARCH DESIGN
Research design refers to the framework of market research methods and
techniques that are chosen by a researcher. The design that is chosen by the
researchers allow them to utilize the methods that are suitable for the study

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and to set up their studies successfully in the future as well. The present study
is descriptive.
SOURCE OF DATA
In this stage both primary and secondary data are required.
Primary data
This type of data is collected by the research or through investigation or a
enumerator for the first time. Primary data are usually collected from source
where the data are originally originates from and regulated at the best kind of
data in research.
Secondary data
Secondary data is the data that has already been collected through primary
source and made readily available for researchers to use for their own
research. A researcher may have collected the data for a particular project,
then made it available to be used by another researcher.
SAMPLING PLAN
A sampling plan Is a detailed outline of which measurement will be taken at
what time, on which material in what manner, and by whom. Convenience
sampling method is used for this study. Convenience sampling method that
realizes on data collection from population members who are conveniently
available to participate in study
Sampling
It is a process used in statistical analysis in which a predetermined number
of observations are taken from a large population.
Population
Population represents a universe. In this study population is the number of
youths who are using Flipkart for purchase in Thrissur district.

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Sample size

The sample size that is taken here for preparing the project is 50 and total
population is Infinity.

1.5 TOOLS OF ANALYSIS

The objective of this study is to understand the buying behavior of youth in


flipkart. Analysis leads to interpretation of data. Tools used for graphical
representation are bar diagram, pie chart, table etc… Analytical tools are used
for the analysis of collected data. The tools used for analyzing are

• Percentage analysis
• Likert Scale

1.6 PERIOD OF ANALYSIS

The study was carried out by the period of 21 days.

1.7 LIMITATION OF THE STUDY

• The main limitation of the study is lack of time.


• Reluctance of respondents to respond.
• Inadequate data to support the study.
• Some information given by respondence is not reliable.
• Analysis is done by assumptions.

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CHAPTER-2

PROFILE

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INDUSTRY PROFILE

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E-commerce

E-commerce (electronic commerce) is the activity of electronically buying or


selling of products on online services or over the Internet. E-commerce draws
on technologies such as mobile commerce, electronic funds transfer, supply
chain management, Internet marketing, online transaction processing,
electronic data interchange (EDI), inventory management systems, and
automated data collection systems. E-commerce is in turn driven by the
technological advances of the semiconductor industry and is the largest sector
of the electronics industry.

E-commerce typically uses the web for at least a part of a transaction's life
cycle although it may also use other technologies such as e-mail. Typical e-
commerce transactions include the purchase of products (such as books from
Amazon) or services. There are three areas of e-commerce: online retailing,
electronic markets, and online auctions. E-commerce is supported by
electronic business.

A timeline for the development of e-commerce:

1971 or 1972: The ARPANET is used to arrange a cannabis sale between


students at the Stanford Artificial Intelligence Laboratory and the
Massachusetts Institute of Technology, later described as "the seminal act of
e-commerce" in John Markoff's book What the Dormouse Said.

1976: Atalla Tec novation (founded by Mohamed Atalla) and Bunker Ramo
Corporation (founded by George Bunker and Simon Ramo) introduce
products designed for secure online transaction processing, intended for
financial institutions.

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1979: Michael Aldrich demonstrates the first online shopping system.

1981: Thomson Holidays UK is the first business-to-business (B2B) online


shopping system to be installed.

1982: Minitel was introduced nationwide in France-by-France Telecom and


used for online ordering.

1983: California State Assembly holds first hearing on "electronic commerce"


in Volcano, California. Testifying are CPUC, MCI Mail, Prodigy,
CompuServe, Volcano Telephone, and Pacific Telesis. California's Electronic
Commerce Act was passed in 1984.

1983: Karen Earle Lile and Kendall Ross Bean create e-commerce service in
San Francisco Bay Area. Buyers and sellers of pianos connect through a
database created by Piano Finders on a Kaypro personal computer using DOS
interface. Pianos for sale are listed on a Bulletin board system. Buyers print
list of pianos for sale by a dot matrix printer. Customer service happened
through a Piano Advice Hotline listed in the San Francisco Chronicle
classified ads and money transferred by a bank wire transfer when a sale was
completed.

1984: Gateshead SIS/Tesco is first B2C online shopping system and Mrs
Snowball, 72, is the first online home shopper

1984: In April 1984, CompuServe launches the Electronic Mall in the US and
Canada. It is the first comprehensive electronic commerce service.

1989: In May 1989, Sequoia Data Corp. introduced Comp market, the first
internet-based system for e-commerce. Sellers and buyers could post items for
sale and buyers could search the database and make purchases with a credit
card.

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1990: Tim Berners-Lee writes the first web browser, Worldwide Web, using a
NeXT computer.
1992: Book Stacks Unlimited in Cleveland opens a commercial sales website
(www.books.com) selling books online with credit card processing.

1993: Paget Press releases edition No. 3of the first app store, The Electronic
AppWrapper

1994: Netscape releases the Navigator browser in October under the code
name Mozilla. Netscape 1.0 is introduced in late 1994 with SSL encryption
that made transactions secure.

1994: Ipswich IMail Server becomes the first software available online for
sale and immediate download via a partnership between Ipswich, Inc. and
Open Market.

1994: "Ten Summoner's Tales" by Sting becomes the first secure online
purchase through Net Market.

1995: The US National Science Foundation lifts its former strict prohibition
of commercial enterprise on the Internet.

1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield,


product manager for CompuServe UK, from W H Smith's shop within
CompuServe's UK Shopping Centre is the UK's first national online shopping
service secure transaction. The shopping service at launch featured W H
Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores (GUS),
Interform, Dixons Retail, Past Times, PC World (retailer) and Innovations.

1995: Amazon.com is launched by Jeff Bezos.

1995: eBay is founded by computer programmer Pierre Omidyar as Auction

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Web. It is the first online auction site supporting person-to-person


transactions.

1995: The first commercial-free 24-hour, internet-only radio stations, Radio


HK and Net Radio start broadcasting.

1996: The use of Excalibur BBS with replicated "storefronts" was an early
implementation of electronic commerce started by a group of Sy sops in
Australia and replicated to global partner sites.

1998: Electronic postal stamps can be purchased and downloaded for printing
from the Web.

1999: Alibaba Group is established in China. Business.com sold for US$7.5


million to e-Companies, which was purchased in 1997 for US$149,000. The
peer-to-peer filesharing software Napster launches. ATG Stores launches to
sell decorative items for the home online.

1999: Global e-commerce reaches $150 billion

2000: The dotcom bust.

2001: eBay has the largest userbase of any e-commerce site.

2001: Alibaba.com achieved profitability in December 2001.

2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Wayfair
and Net Shops are founded with the concept of selling products through
several targeted domains, rather than a central portal.

2003: Amazon.com posts first yearly profit.

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2004: DHgate.com, China's first online B2B transaction platform, is


established, forcing other B2B sites to move away from the "yellow pages"
model.

2007: Business.com acquired by R.H. Donnelley for $345 million.

2014: US e-commerce and online retail sales projected to reach $294 billion,
an increase of 12 percent over 2013 and 9% of all retail sales.Alibaba Group
has the largest Initial public offering ever, worth $25 billion.

2015: Amazon.com accounts for more than half of all e-commerce growth,
selling almost 500 million SKU's in the US.

2017: Retail e-commerce sales across the world reaches $2.304 trillion, which
was a 24.8 percent increase than previous year.

2017: Global e-commerce transactions generate $29.267 trillion, including


$25.516 trillion for business-to-business (B2B) transactions and $3.851
trillion for business-to-consumer (B2C) sales.

Forms

Contemporary electronic commerce can be classified into two categories. The


first category is business based on types of goods sold (involves everything
from ordering "digital" content for immediate online consumption, to ordering
conventional goods and services, to "meta" services to facilitate other types of
electronic commerce). The second category is based on the nature of the
participant (B2B, B2C, C2B and C2C). On the institutional level, big
corporations and financial institutions use the internet to exchange financial
data to facilitate domestic and international business. Data integrity and
security are pressing issues for electronic commerce. Aside from traditional e-
commerce, the terms m-Commerce (mobile commerce) as well (around 2013)

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t-Commerce have also been used.

Distribution channels

E-commerce has grown in importance as companies have adopted pure-click


and brick-and-click channel systems. We can distinguish pure-click and brick-
and-click channel system adopted by companies. Pure-click or pure-play
companies are those that have launched a website without any previous
existence as a firm. Bricks-and-clicks companies are those existing companies
that have added an online site for e-commerce. Click-to-brick online retailers
that later open physical locations to supplement their online efforts.E-
commerce may take place on retailers' Web sites or mobile apps, or those of
e-commerce marketplaces such as on Amazon, or Tmall from Alibaba. Those
channels may also be supported by conversational commerce, e.g. live chat or
chatbots on Web sites. Conversational commerce may also be standalone such
as live chat or chatbots on messaging apps and via voice assistants.

Global trends

In 2010, the United Kingdom had the highest per capita e-commerce spending
in the world. As of 2013, the Czech Republic was the European country
where e-commerce delivers the biggest contribution to the enterprises´ total
revenue. Almost a quarter (24%) of the country's total turnover is generated
via the online channel.

Among emerging economies, China's e-commerce presence continues to


expand every year. With 668 million Internet users, China's online shopping
sales reached $253 billion in the first half of 2015, accounting for 10% of
total Chinese consumer retail sales in that period. The Chinese retailers have
been able to help consumers feel more comfortable shopping online e-
commerce transactions between China and other countries increased 32% to

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2.3 trillion yuan ($375.8 billion) in 2012 and accounted for 9.6% of China's
total international trade. In 2013, Alibaba had an e-commerce market share of
80% in China. In 2014, there were 600 million Internet users in China (twice
as many as in the US), making it the world's biggest online market. China is
also the largest e-commerce market in the world by value of sales, with an
estimated US$899 billion in 2016. Research shows that Chinese consumer
motivations are different enough from Western audiences to require unique e-
commerce app designs instead of simply porting Western apps into the
Chinese market.

Recent research clearly indicates that electronic commerce, commonly


referred to as e-commerce, presently shapes the manner in which people shop
for products. The GCC countries have a rapidly growing market and are
characterized by a population that becomes wealthier (Yuldashev). As such,
retailers have launched Arabic-language websites as a means to target this
population. Secondly, there are predictions of increased mobile purchases and
an expanding internet audience (Yuldashev). The growth and development of
the two aspects make the GCC countries become larger players in the
electronic commerce market with time progress. Specifically, research shows
that the e-commerce market is expected to grow to over $20 billion by the
year 2020 among these GCC countries (Yuldashev). The e-commerce market
has also gained much popularity among western countries, and in particular
Europe and the U.S. These countries have been highly characterized by
consumer-packaged goods (CPG) (Geisler, 34). However, trends show that
there are future signs of a reverse. Similar to the GCC countries, there has
been increased purchase of goods and services in online channels rather than
offline channels. Activist investors are trying hard to consolidate and slash
their overall cost and the governments in western countries continue to

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impose more regulation on CPG manufacturers (Geisler, 36). In these senses,


CPG investors are being forced to adapt to e-commerce as it is effective as
well as a means for them to thrive.

In 2013, Brazil's e-commerce was growing quickly with retail e-commerce


sales expected to grow at a double-digit pace through 2014. By 2016,
eMarketer expected retail e-commerce sales in Brazil to reach $17.3 billion.
India has an Internet user base of about 460 million as of December 2017.
Despite being the third largest user base in the world, the penetration of the
Internet is low compared to markets like the United States, United Kingdom
or France but is growing at a much faster rate, adding around 6 million new
entrants every month.[citation needed] In India, cash on delivery is the most
preferred payment method, accumulating 75% of the e-retail
activities.[citation needed] The India retail market is expected to rise from
2.5% in 2016 to 5% in 2020.[56]

The future trends in the GCC countries will be similar to that of the western
countries. Despite the forces that push business to adapt e-commerce as a
means to sell goods and products, the manner in which customers make
purchases is similar in countries from these two regions. For instance, there
has been an increased usage of smartphones which comes in conjunction with
an increase in the overall internet audience from the regions. Yuldashev
writes that consumers are scaling up to more modern technology that allows
for mobile marketing. However, the percentage of smartphone and internet
users who make online purchases is expected to vary in the first few years. It
will be independent on the willingness of the people to adopt this new trend
(The Statistics Portal). For example, UAE has the greatest smartphone
penetration of 73.8 per cent and has 91.9 per cent of its population has access
to the internet. On the other hand, smartphone penetration in Europe has been

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reported to be at 64.7 per cent (The Statistics Portal). Regardless, the disparity
in percentage between these regions is expected to level out in future because
e-commerce technology is expected to grow to allow for more users.

The e-commerce business within these two regions will result in competition.
Government bodies at the country level will enhance their measures and
strategies to ensure sustainability and consumer protection (Krings, et al.).
These increased measures will raise the environmental and social standards in
the countries, factors that will determine the success of the e-commerce
market in these countries. For example, an adoption of tough sanctions will
make it difficult for companies to enter the e-commerce market while lenient
sanctions will allow ease of companies. As such, the future trends between
GCC countries and the Western countries will be independent of these
sanctions (Krings, et al.). These countries need to make rational conclusions
in coming up with effective sanctions.

The rate of growth of the number of internet users in the Arab countries has
been rapid – 13.1% in 2015. A significant portion of the e-commerce market
in the Middle East comprises people in the 30–34-year age group. Egypt has
the largest number of internet users in the region, followed by Saudi Arabia
and Morocco; these constitute 3/4th of the region's share. Yet, internet
penetration is low: 35% in Egypt and 65% in Saudi Arabia.E-commerce has
become an important tool for small and large businesses worldwide, not only
to sell to customers, but also to engage them.In 2012, e-commerce sales
topped $1 trillion for the first time in history.

Mobile devices are playing an increasing role in the mix of e-commerce, this
is also commonly called mobile commerce, or m-commerce. In 2014, one
estimate saw purchases made on mobile devices making up 25% of the

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market by 2017.

For traditional businesses, one research stated that information technology


and cross-border e-commerce is a good opportunity for the rapid development
and growth of enterprises. Many companies have invested an enormous
volume of investment in mobile applications. The DeLone and McLean
Model stated that three perspectives contribute to a successful e-business:
information system quality, service quality and users' satisfaction.

Modern 3D graphics technologies, such as Facebook 3D Posts, are considered


by some social media marketers and advertisers as a preferable way to
promote consumer goods than static photos, and some brands like Sony are
already paving the way for augmented reality commerce. Wayfair now lets
you inspect a 3D version of its furniture in a home setting before buying.

E-commerce during COVID-19

Further information: Economic impact of the COVID-19 pandemic. In March


2020, global retail website traffic hit 14.3 billion visits signifying an
unprecedented growth of e-commerce during the lockdown of 2020. Studies
show that in the US, as many as 29% of surveyed shoppers state that they will
never go back to shopping in person again; in the UK, 43% of consumers
state that they expect to keep on shopping the same way even after the
lockdown is over. Retail sales of e-commerce shows that COVID-19 has a
significant impact on e-commerce and its sales are expected to reach $6.5
trillion by 2023.

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COMPANY PROFILE

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COMPANY PROFILE

Flipkart

Flipkart is an Indian e-commerce company, headquartered in Bangalore,


Karnataka, India, and incorporated in Singapore as a private limited company.
The company initially focused on online book sales before expanding into
other product categories such as consumer electronics, fashion, home
essentials, groceries, and lifestyle products.

The service competes primarily with Amazon's Indian subsidiary and


domestic rival Snapdeal. As of March 2017, Flipkart held a 39.5% market
share of India's e-commerce industry.Flipkart has a dominant position in the
apparel segment, bolstered by its acquisition of Myntra, and was described as
being "neck and neck" with Amazon in the sale of electronics and mobile
phones. Flipkart also owns PhonePe, a mobile payments service based on the
UPI.

In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling


stake in Flipkart for US$16 billion, valuing Flipkart at around $20 billion.

History

Flipkart logo used from 2007 to 2015.Flipkart was founded in October 2007
by SachinBansal and Binny Bansal, alumni of the IIT, Delhi and former
Amazon employees.The company initially focused on online book sales with
country-wide shipping. Flipkart slowly grew in prominence and was receiving
100 orders per day by 2008. In 2010, Flipkart acquired the Bangalore-based
social book discovery service We Read from Lulu.com.

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Partnerships and acquisitions

Acquisitions

In 2011, Flipkart acquired the digital distribution business Mime360.com and


the digital content library of the Bollywood portal Chakpak. Following this
acquisition, Flipkart launched their DRM-free online music store Flyte in
2012. Because of competition from free streaming sites, the site was
unsuccessful and shut down in June 2013.With its eyes on India's retail
market, Flipkart acquired Letsbuy, an online electronics retailer, in 2012, and
Myntra, an online fashion retailer, for $280 million in May 2014. Myntra
continues to operate alongside Flipkart as a standalone subsidiary focusing on
separate market segments. In April 2015, Flipkart acquired Appiterate, a
Delhi-based mobile marketing automation firm. Flipkart stated that it would
use Appiterate's technology to enhance its mobile services. In December
2015, Flipkart purchased a minority stake in the digital mapping provider
MapmyIndia. In 2016, Flipkart acquired the online fashion retailer
Jabong.com from Rocket Internet for $70 million and the UPI mobile
payments startup PhonePe. In January 2017, Flipkart made a $2 million
investment in TinyStep, a parenting information startup. Flipkart invested $35
million in Arvind Fashions Limited's newly formed subsidiary Arvind Youth
Brands for a 27% stake in the company. Arvind Youth Brands owns Flying
Machine.

Flipkart Wholesale recently launched a digital platform for kiranas and


MSMEs. In October 2020, Flipkart acquired a 7.8% stake in Aditya Birla
Fashion and Retail for $204 million.

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Partnerships

In April 2017, eBay announced that it would sell its Indian subsidiary,
eBay.in, to Flipkart and invest $500 million in the company. While eBay
suggested that the partnership would eventually allow Flipkart to access
eBay's network of international vendors, these plans never actually came to
fruition. In July 2017, Flipkart made an offer to acquire its main domestic
competitor, Snapdeal, for $700–800 million. It was rejected by Snapdeal,
which was seeking at least $1 billion.

In August 2019, Flipkart entered into a partnership with Authentic Brands to


license and distribute Nautica in India. Flipkart invested $4 million in the
customer engagement and rewards platform Easy Rewards on 19 November
2019.

Mobile retailing

In February 2014, Flipkart partnered with Motorola Mobility to be the


exclusive Indian retailer of its Moto G smartphone. Motorola also partnered
with Flipkart on the Moto E, a phone targeted primarily towards emerging
markets such as India. High demand for the phone following its midnight
launch on 14 May caused the Flipkart website to crash. Flipkart subsequently
held exclusive Indian launches for other smartphones, including the Xiaomi
Mi 3 in July 2014 (whose initial release of 10,000 devices sold out in around
5 seconds), the Redmi 1S and Redmi Note in late 2014, and Micromax's Yu
Yunique 2 in 2017. Flipkart held a 51% share of all Indian smartphone
shipments in 2017, overtaking Amazon India (33%).

On 6 October 2014, in honor of the company's anniversary and the Diwali


season, Flipkart held a major sale that it promoted as "Big Billion Day". The
event generated a surge of traffic, selling $100 million worth of goods in 10

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hours. The event received criticism via social media over technical issues the
site experienced during the event and stock shortages.

In October 2015, Flipkart reprised the Big Billion Day event as a multi-day
event exclusive to the Flipkart app. Flipkart bolstered its supply chain and
introduced more fulfillment centers to meet customer demand.Flipkart
achieved a gross merchandise volume of $300 million during the event, with
the largest volumes coming from fashion sales and the largest value coming
from mobiles. In 2017, Flipkart sold 1.3 million phones in 20 hours on 21
September in its Big Billion Days promotion, doubling the number sold on
the first day of the same event in 2016.

In March 2015, Flipkart blocked access to its website on mobile devices and
began requiring that users download the site's mobile app instead. The
following month, Myntra went further and discontinued its website on all
platforms, operating exclusively through its app. The "app-only" model,
however, proved to be unsuccessful for Myntra, reducing its sales by 10%,
and its main website was reinstated in February 2016. The experiment with
Myntra led to rumors that Flipkart itself would perform a similar move, but
the company did not follow suit. In November 2015, Flipkart launched a new
mobile website branded as "Flipkart Lite" that provides an experience
inspired by Flipkart's app and runs in smartphone web browsers.

Acquisition by Walmart

On 4 May 2018, it was reported that the US retail chain Walmart had won a
bidding war with Amazon to acquire a majority stake in Flipkart for $15
billion. On 9 May 2018, Walmart officially announced its intent to acquire a
77% controlling stake in Flipkart for $16 billion. Following the purchase,
Flipkart co-founder Sachin Bansal left the company. The remaining

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management team now reports to Marc Lore, CEO of Walmart eCommerce


US. Walmart president Doug McMillon cited the "attractiveness" of the
market, explaining that their purchase "is an opportunity to partner with the
company that is leading transformation of eCommerce in the market". Indian
traders protested the deal, considering the deal a threat to domestic business.

In a filing with the U. S. Securities and Exchange Commission on 11 May


2018, Walmart stated that a condition of the deal prescribed the possibility
that Flipkart's current minority shareholders "may require Flipkart to effect an
initial public offering following the fourth anniversary of the closing of the
transactions at a valuation no less than that paid by Walmart".

Following the announcement of Walmart's deal, eBay announced that it


would sell its stake in Flipkart back to the company for approximately $1.1
billion and relaunch its own Indian operations. The company stated that "there
is the huge growth potential for e-commerce in India and significant
opportunity for multiple players to succeed in India's diverse, domestic
market." Softbank Group also sold its entire 20% stake to Walmart without
disclosing terms of the sale.

The acquisition was completed on 18 August 2018. Walmart also provided $2


billion in equity funding to the company.

On 13 November 2018, Flipkart CEO Binny Bansal resigned after facing an


allegation of "serious personal misconduct". Walmart stated that "while the
investigation did not find evidence to corroborate the complainant's assertions
against Binny, it did reveal other lapses in judgment, particularly a lack of
transparency, related to how Binny responded to the situation."

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Business structures

According to a report in November 2014, Flipkart was operating through a


complex business structure that included nine firms, some registered in
Singapore and some in India. In 2012, Flipkart co-founders sold WS Retail to
a consortium of investors led by Rajeev Kuchhal.Flipkart's Indian entities are
owned by Flipkart Pvt. Ltd, which is registered in Singapore. The Singapore-
registered entity owns eight Indian companies, including Flipkart Internet Pvt.
Ltd, the company that runs the e-commerce marketplace Flipkart.com,
Flipkart India Pvt. Ltd, the wholesale business, and Flipkart Logistics Pvt.
Ltd, which runs Ekart.

Funding

The initial development budget of Flipkart was INR ₹400,000 (US$5,300). It


later raised funding from venture capital firms Accel India (receiving US$1
million in funding in 2009) and Tiger Global (US$10 million in 2010 and
US$20 million in June 2011). On 24 August 2012, Flipkart announced the
completion of its 4th round of funding, netting a total of US$150 million from
MIH (part of the Naspers Group) and ICONIQ Capital. The company
announced on 10 July 2013 that it had raised an additional US$200 million
from existing investors, including Tiger Global, Naspers, Accel Partners and
Iconic Capital.

Flipkart's reported sales were ₹40 million (US$530,000) in the FY 2008–


2009, ₹200 million (US$2.7 million) in the FY 2009–2010 and ₹750 million
(US$10 million) in the FY 2010–2011.

Flipkart reported a loss of ₹2.81 billion (US$37 million) for the FY 2012–13.
In July 2013, Flipkart raised $160 million from private equity investors.

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In October 2013, it was reported that Flipkart had raised an additional


US$160 million from new investors Dragoneer Investment Group, Morgan
Stanley Wealth Management, Sofina SA, and Vulcan Inc., with a share of the
funding coming from existing investor Tiger Global.

On 26 May 2014, Flipkart announced that it had raised US$210 million from
Yuri Milner's DST Global and its existing investors Tiger Global, Naspers,
and Iconic Capital.

On 29 July 2014, Flipkart announced that it raised US$1 billion from Tiger
Global, Accel Partners, Morgan Stanley Investment Management, and a new
investor, Singaporean sovereign-wealth fund GIC.

In December 2014, after it received $700 million from another round of


funding, Flipkart had a market cap of $11 billion. On 20 December 2014,
Flipkart announced its filing application with Singapore-based company
regulator ACRA to become a public company. This announcement came after
the company received $700 million in long-term strategic investments from
more than 50 Indian investors. The $700 million in funding raised by Flipkart
added new investors to the company's board, including Baillie Gifford,
Greenoaks Capital, Steadview Capital, T. Rowe Price Associates, and Qatar
Investment Authority. Its existing investors DST Global, GIC, ICONIQ
Capital and Tiger Global also participated in this financing round.[98] As of
May 2015, Flipkart had raised $550 million in additional funding from its
existing investors in a deal that raised its total valuation to $15 billion.

By August 2015, after raising another US$700 million, Flipkart had raised a
total of $3 billion over 12 rounds of funding from 16 major investors. In April
2017, Flipkart underwent another round of funding, receiving $1.4 billion in
funding from investors including eBay, Microsoft, and Tencent. On 10

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August 2017, SoftBank Vision Fund invested another US$2.5 billion in


Flipkart. On 19 September 2018, Flipkart Marketplace Singapore infused
₹3,463 crore into Flipkart Internet. The transaction was done in two tranches,
according to regulatory filings.

Regulatory action and lawsuits

In November 2012, the Indian Enforcement Directorate began investigating


Flipkart for alleged violations of the foreign direct investment regulations of
the Foreign Exchange Management Act of 1999. On 30 November 2012,
Flipkart's offices were raided by the Enforcement Directorate. Documents and
computer hard drives were seized by the agency. In August 2014, the
Enforcement Directorate claimed that it had found Flipkart to be in violation
of the Foreign Exchange Management Act.The Delhi High Court declared
that several e-commerce firms, including Flipkart, had violated foreign
investment regulations.

In January 2016, a public interest litigation hearing came up accusing Flipkart


of contravention of foreign investment norms. The court asked the Reserve
Bank of India to provide the latest circular on foreign investment policy. The
same month, the Department of Industrial Policy and Promotion (DIPP)
clarified that it did not recognize the marketplace model of online retail. In
February 2016, Health Minister J P Nadda announced that the Maharashtra
FDA had taken action against Flipkart, among others, for selling drugs
without a valid license.

House brands

Flipkart operates several house brands, including Citron (home appliances)


and Digi flip (formerly for electronics and accessories). In 2017, Flipkart

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launched additional house brands, including Billion (smartphones), Smart buy


(electronics accessories, effectively replacing Digi flip), and MarQ (for large
appliances, although its launch was complicated by a trademark dispute with
an existing company, Marc Enterprises).

In 2019, Flipkart began selling Nokia-brand televisions. A 55-inch, Android


TV-based 4K Smart TV was the first product released under that licensing
agreement. A 43-inch TV was unveiled on 4 June 2020.

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CHAPTER-3

REVIEW OF LITERATURE

AND

THEORETICAL FRAMEWORK

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REVIEW OF LITERATURE

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3.1 REVIEW OF LITERATURE

Jarvenpaa, Tractinsky and vitale(2000)

In his study explore how customers professed store size and status inspire
their trust in perception, attitudes and willingness to purchase from the
specific store.

Anita desai(2003)

In her study found that e-marketing is the reduced version of electronic


retailing which basically creates business to buyer business. While the
concept of e-tailing is no longer in its budding stage, it remains to change, as
progressive ecommerce requests act as a strong promoter in developing e-
marketing.

Delafrooz(2010)

Tried to find out the factors influencing youths attitudes towards online
shopping in Malaysia through a five level likert scale self -administered
questionnaire ; which was based on prior literature .The results indicated that
utilitarian ,convenience price and a wider selection influenced consumers
attitude towards online shopping.

Kim(2010)

In this study founded out that the consumer factor comprised of privacy,
security, and trust , time saving , ease of use, company reputation and tactility
was most significant for who intended to purchase online and who did buy
online.

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Wambui(2010)

The findings of the study revealed that there was a high level finding of
awareness of shopping but very low use of them findings also showed that
online shoppers were mostly male, most of them were aged 30 years and
below most earned higher incomes.

Kiyicl (2012)

In his study of internet shopping behaviour of college students, tried to find


out the role of familiarity and income and possession of credit card on online
shopping .His results found out that male students, teachers are more positive
attitude than female student, teacher participants who have credit card ,have
more familiarity and less anxiety concerning internet shopping.

GagandeepNagra, R. Gopal (2013)

“A study of Factors Affecting on Online Shopping Behaviour of Consumers”.


The main objective of the research was to identify the impact of Demographic
factors impacting on-line shopping Behavior of consumers with special
emphasis on Age, Gender, Education, Income Possession of internet,
Frequency of online purchase, Motivation drives for online purchase. The
sample size of the research was 70 respondents. The researcher had
used“ANNOVA” method for the analysis of data. After the data analysis, the
researcher concludes that the gender does impact Possession of internet and
Frequency of online purchase of consumer’s occupation is a demographic
variable which does not impact any of the variable. The respondents had
perceived online shopping in a positive manner. On-line shopping in India is
significantly affected factor by various Demographic factors like age, gender,
marital status, family size and income.

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PratiksinhVaghela (2014)

“A Study on Consumer Perception towards Online Shopping''. The main


objective of the research was to study the perception of the customers towards
online shopping and also discriminate this perception gender wise. The
sample size of the research was 150 respondents from varachha region Surat.
The author had used tools like tabulation, chi-square test, frequency
distribution, cross tabs, and charts with the help of the Statistical Package for
Social Sciences (SPSS) software for analysis purposes. After the analysis,
finally researchers concluded that most of the customers perceived that online
shopping is a better option than manual shopping and most of their customers
were satisfied with their online shopping transactions. Customers are
accessing their net at their home and office/ college. Largely customers are
buying cloth, electronics items and accessories.

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THEORETICAL FRAMEWORK

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3.2 THEORETICAL FRAMEWORK

Consumer behavior is the study of individuals, groups, or organizations and


all the activities associated with the purchase, use and disposal of goods and
services. Consumer behaviour consists of how the consumer's emotions,
attitudes and preferences affect buying behaviour. Consumer behaviour
emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has
become an interdisciplinary social science that blends elements from
psychology, sociology, social anthropology, anthropology, ethnography,
marketing and economics (especially behavioural economics).

The study of consumer behavior formally investigates individual qualities


such as demographics, personality lifestyles, and behavioral variables (such as
usage rates, usage occasion, loyalty, brand advocacy, and willingness to
provide referrals), in an attempt to understand people's wants and
consumption patterns. Consumer behavior also investigates the influences on
the consumer, from social groups such as family, friends, sports, and
reference groups, to society in general (brand-influencers, opinion leaders).

Research has shown that consumer behavior is difficult to predict, even for
experts in the field; however, new research methods, such as ethnography,
consumer neuroscience, and machine learning are shedding new light on how
consumers make decisions. In addition, customer relationship management
(CRM) databases have become an asset for the analysis of customer behavior.
The extensive data produced by these databases enables detailed examination
of behavioral factors that contribute to customer repurchase intentions,
consumer retention, loyalty and other behavioral intentions such as the
willingness to provide positive referrals, become brand advocates or engage
in customer citizenship activities. Databases also assist in market
segmentation, especially behavioral segmentation such as developing loyalty

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segments, which can be used to develop tightly targeted, customized


marketing strategies on a one-to-one basis. (Also see relationship marketing).

Origins of consumer behavior

Main article: History of marketing § History of marketing thought

In the 1940s and '50s, marketing was dominated by the so-called classical
schools of thought which were highly descriptive and relied heavily on case
study approaches with only occasional use of interview methods. At the end
of the 1950s, two important reports criticised marketing for its lack of
methodological rigor, especially the failure to adopt mathematically-oriented
behavioral science research methods. The stage was set for marketing to
become more interdisciplinary by adopting a consumer-behaviourist
perspective.

From the 1950s, marketing began to shift its reliance away from economics
and towards other disciplines, notably the behavioural sciences, including
sociology, anthropology and clinical psychology. This resulted in a new
emphasis on the customer as a unit of analysis. As a result, new substantive
knowledge was added to the marketing discipline – including such ideas as
opinion leadership, reference groups and brand loyalty. Market segmentation,
especially demographic segmentation based on socioeconomic status (SES)
index and household life-cycle, also became fashionable. With the addition of
consumer behaviour, the marketing discipline exhibited increasing scientific
sophistication with respect to theory development and testing procedures.

In its early years, consumer behaviour was heavily influenced by motivation


research, which had increased the understanding of customers, and had been
used extensively by consultants in the advertising industry and also within the
discipline of psychology in the 1920s, '30s and '40s. By the 1950s, marketing
began to adopt techniques used by motivation researchers including depth

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interviews, projective techniques, thematic apperception tests and a range of


qualitative and quantitative research methods.] More recently, scholars have
added a new set of tools including: ethnography, photo-elicitation techniques
and phenomenological interviewing. Today, consumer behaviour (or CB as it
is affectionately known) is regarded as an important sub-discipline within
marketing and is included as a unit of study in almost all undergraduate
marketing programs. Purchase decision

Once the alternatives have been evaluated, the consumer firms up their
resolve to proceed through to the actual purchase. For example, the consumer
might say to his/herself, "Yes, I will buy Brand X one day." This self
instruction to make a purchase is known as purchase intent. Purchase
intentions are a strong, yet imperfect predictor of sales. Sometimes purchase
intentions simply do not translate into an actual purchase and this can signal a
marketing problem.For instance, a consumer may wish to buy a new product,
but may be unaware of the retail outlets that stock it, so that purchasing
cannot proceed. The extent to which purchase intentions result in actual sales
is known as the sales conversion rate.

Organizations use a variety of techniques to improve conversion rates. The


provision of easy credit or payment terms may encourage purchase. Sales
promotions such as the opportunity to receive a premium or enter a
competition may provide an incentive to buy now rather than defer purchases
for a later date. Advertising messages with a strong call-to-action are yet
another device used to convert customers.A call-to-action is any device
designed to encourage immediate sale. Typically, a call-to-action includes
specific wording in an advertisement or selling pitch that employs imperative
verbs such as "Buy now!" or "Don't wait!". Other types of calls-to-action
might provide consumers with strong reasons for purchasing immediately
such an offer that is only available for a limited time (e.g. 'Offer must expire

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soon'; 'Limited stocks available') or a special deal usually accompanied by a


time constraint (e.g. 'Order before midnight to receive a free gift with your
order'; 'Two for the price of one for first 50 callers only'). Additionally,
service convenience is a saving of effort, in the way that it minimizes the
activities that customers may bear to buy goods and services. The key to a
powerful call-to-action is to provide consumers with compelling reasons to
purchase promptly rather than defer purchase decisions.

As consumers approach the actual purchase decision, they are more likely to
rely on personal sources of information. For this reason, personal sales
representatives must be well versed in giving sales pitches and in tactics used
to close the sale. Methods used might include: ‘social evidence’, where the
salesperson refers to previous success and satisfaction from other customers
buying the product. ‘Scarcity attraction’ is another technique, where the
salesperson mentions that the offer is limited, as it forces the consumer to
make a quicker decision, and therefore less time evaluating alternatives.

Post-purchase evaluation

Following purchase and after experiencing the product or service, the


consumer enters the final stage, namely post-purchase evaluation. The
consumer's purchase and post-purchase activities have the potential to provide
important feedback to marketers. Foxall suggested that post-purchase
evaluation provides key feedback because it influences future purchase
patterns and consumption activities. The post purchase stage is where the
consumer examines and compares product features, such as price,
functionality, and quality with their expectations. Post purchase evaluation
can be viewed as the steps taken by consumers to correlate their expectations
with perceived value, and thus influences the consumer's next purchase
decision for that good or service. For example, if a consumer buys a new

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phone and his or her post-purchase evaluation is positive, he/she will be


encouraged to purchase the same brand or from the same company in the
future. This is also known as "post-purchase intention". On the contrary, if a
consumer is dissatisfied with the new phone, he or she may take actions to
resolve the dissatisfaction. Consumer actions, in this instance, could involve
requesting a refund, making a complaint, deciding not to purchase the same
brand or from the same company in the future or even spreading negative
product reviews to friends or acquaintances, possibly via social media.

After acquisition, consumption or disposition, consumers may feel some


uncertainty in regards to the decision made, generating in some cases regret.
Post-decision dissonance(also known as cognitive dissonance) is the feeling
of anxiety that occurs in the post purchase stage, as well as the uneasy
feelings or concerns as to whether or not the correct decision was made at
purchase.Some consumers, for instance, may regret that they did not purchase
one of the other brands they were considering. This type of anxiety can affect
consumers' subsequent behaviour and may have implications for repeat
patronage and customer loyalty.

Consumers use a number of strategies to reduce post purchase dissonance. A


typical strategy is to look to peers or significant others for validation of the
purchase choice. Customers have always been led by the opinions of friends
and family, but nowadays this is corroborated by social media likes, reviews
and testimonials. Marketing communications can also be used to remind
consumers that they made a wise choice by purchasing Brand X.

When consumers make unfavorable comparisons between the chosen option


and the options forgone, they may feel post-decision regret or buyer's
remorse. Consumers can also feel short-term regret when they avoid making a
purchase decision, however this regret can dissipate over time. Through their

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experiences consumers can learn and also engage in a process that's called
hypothesis testing. This refers to the formation of hypotheses about the
products or a service through prior experience or word of mouth
communications. There are four stages that consumers go through in the
hypothesis testing: Hypothesis generation, exposure of evidence, encoding of
evidence and integration of evidence.

Influences on purchase decision

Purchasing is influenced by a wide range of internal and external factors.

Consumer awareness

Consumer awareness refers to the awareness of the consumption of goods


formed by consumers in the long-term shopping environment and purchasing
activities.

The change of life concept is the subjective factor of the change of consumer
awareness. As people's living standards continue to increase and incomes
continue to increase, people's life concepts are constantly changing.
Differences in consumer personality are the internal motivations for changes
in consumer awareness.

Intensified market competition is a catalyst for changes in consumer


awareness. Many companies have launched their own branded products in
order to gain a foothold in an increasingly competitive market.In the face of a
variety of goods and brands, consumers' brand awareness matures. When
people buy goods, paying attention to the brand has become a fashion. Faced
with the severe competition situation, companies began to realize the
importance of implementing brand strategy, and began to focus on market
research, and on this basis, deeply grasp the consumer's psychological pulse
to improve market share and brand loyalty.With the change of people's life
concept, consumers' rational consumption psychology has become

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increasingly prominent. Social Marketing. Customized Marketing,brand-name


shopping, and the consumer's perception of the price of the commodity
(directly expressed as the consumer's sensitivity to price), are all main factors
for understanding consumer attitudes, and help explain the reaction of market
demand to price changes.Internal influences on purchase decisionInternal
influences refer to both personal and interpersonal factors. Social theory
suggests that individuals have both a personal identity and a social identity.
Personal identity consists of unique personal characteristics such as skills and
capabilities, interests and hobbies. Social identity consists of the individual's
perception of the central groups to which an individual belongs and may refer
to an age group, a lifestyle group, religious group, educational group or some
other reference group. Social psychologists have established that the need to
belong is one of the fundamental human needs.Purchasingbehaviour is
therefore influenced by a broad range of internal factors such as
psychological, socio-economic, demographic and personality factors.
Demographic factors include income level, psychographics (lifestyles), age,
occupation and socio-economic status. Personality factors include knowledge,
attitudes, personal values, beliefs, emotions and feelings. Psychological
factors include an individual's motivation, attitudes, personal values and
beliefs. Social identity factors include culture, sub-culture and reference
groups. Other factors that may affect the purchase decision include the
environment and the consumer's prior experience with the category or brand.

The consumer's underlying motivation drives consumer action, including


information search and the purchase decision. The consumer's attitude to a
brand (or brand preference) is described as a link between the brand and a
purchase motivation.These motivations may be negative - that is to avoid pain
or unpleasantness, or positive - that is to achieve some type of reward such as
sensory gratification.

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One approach to understanding motivations was developed by Abraham


Maslow. Maslow's hierarchy of needs is based on five levels of needs,
organized accordingly to the level of importance.

Maslow's five needs are:


Physiological

basic levels of needs such as food, water and sleep

Safety

the need for physical safety, shelter and security

Belonging

the need for love, friendship and also a desire for group acceptance

Esteem

The need for status, recognition and self-respect

Self-actualization

The desire for self-fulfillment (e.g. personal growth, artistic expression)

Physiological needs and safety needs are the so-called lower order needs.
Consumers typically use most of their resources (time, energy and finances)
attempting to satisfy these lower order needs before the higher order needs of
belonging, esteem and self-actualization become meaningful. Part of any
marketing program requires an understanding of which motives drive given
product choices. Marketing communications can illustrate how a product or
brand fulfills these needs.Maslow's approach is a generalised model for
understanding human motivations in a wide variety of contexts, but is not
specific to purchasing decisions.

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External influences on purchase decision

Purchasing behaviour can also be affected by external influences, such as


culture, subculture, social class, reference groups, family and situational
determinants.

Culture

Culture is the broadest and most abstract of the external factors. Culture refers
to the complexity of learning meanings, values, norms, and customs shared by
members of a society. Cultural norms are relatively stable over time,
therefore, culture has a major effect on consumer behaviour. Research studies
have consistently shown that culture influences almost every aspect of
purchasing: it affects basic psychological domains such as self-identity and
motivation; it also affects the way that information is processed and the way
that advertising messages are interpreted.

Marketers, interested in global expansion, are especially interested in


understanding cross-cultural differences in purchasing and consumption. For
instance, Ferrari, one of the world's top brands, found that Chinese consumers
are very different from their Western counterparts. Whereas consumers in the
US, UK and Australia expect to wait 12 months for a custom-made Ferrari,
prospective Chinese buyers want to drive the vehicle off the showroom floor.
China is an ‘instant-gratification market’. Buyers see their friends riding
around in a luxury car and want to have the same as quickly as possible. To
meet the growing demand for luxury goods, Ferrari and other luxury car
makers have been forced to modify their production processes for Asian
markets.

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Subculture

It may be based on age, geographic, religious, racial, and ethnic differences.


More often, however, a subculture occurs when people with shared interests
form a loose-knit group with a distinctive identity (sometimes called
consumer tribes). Members of subcultures are self-selected, and signal their
membership status by adopting symbols, rituals or behaviours that are widely
understood by other members of the tribe (e.g. a dress code, hairstyle or even
a unique way of speaking). For example, within youth culture it is possible to
identify a number of sub-groups with common interests such as skaters and
bladers, surfers, ravers, punks, skin-heads, Goths, homies and others.
Generally known as communities, as they create a sense of belonging to
something important.

A different type of subculture is a consumption subculture which is based on


a shared commitment to a common brand or product. In other words,
consumption subcultures cut across demographic, geographic and social
boundaries. The most well-known example of a consumption subculture is
that of Harley-Davidson motorcycle owners. Ethnographic researchers who
have studied Harley riders believe that there are only two types of motor
cyclists; namely Harley owners and the rest. Harley-Davidson has leveraged
the values of this subculture by establishing the Harley Owners Group
(HOG).

Subcultures are important to marketers for several reasons. Firstly, given that
subcultures can represent sizable market segments which are profitable and
influential, there are obvious advantages in developing and selling products
and services that meet the needs of subculture members. Secondly, and
perhaps less obviously, many new fads and fashions emerge spontaneously
from within these tribal groups. Trend-spotters are accordingly interested in

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studying the lifestyles and activities of tribes in an effort to spot new trends
before they go mainstream.

Social class

Social class refers to relatively homogenous divisions in a society, typically


based on socio-economic variables such as educational attainment, income
and occupation. Social class can be very difficult to define and measure,
however marketers around the world tend to use a conventional classification
which divides any given population into five socio-economic quintiles (e.g. In
Australia the groups AB, C, D, E and FG, where AB is the top socio-
economic quintile, but in much of Asia the quintiles are labelled I, II, III, IV
and V where I is the top quintile). In Australia, for example, the AB socio-
economic group account for just 24% of the population, but control 50% of
discretionary spending.The top quintiles (i.e. AB socio-economic segments)
are of particular interest to marketers of luxury goods and services such as
travel, dining-out, entertainment, luxury cars, investment or wealth
management services, up-market consumer electronics and designer labels
(e.g. Louis Vuitton). However, middle-class consumers tend to consume more
carefully in comparison and collect information to compare different
producers in the same line. Those who are lower-class consumers tend to buy
more on impulse in comparison to the wealthy class who purchases goods to
maintain social status.

Reference groups

A reference group is defined as "a group whose presumed perspectives or


values are being used by an individual as the basis for his or her judgment,
opinions, and actions". Reference groups are important because they are used
to guide an individual's attitudes, beliefs and values.] Insights into how

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consumers acquire a given value system can be obtained from an


understanding of group influence and group socialisation processes.

The literature identifies five broad types of reference group; primary,


secondary, aspirational, dissociative and formal:
● Primary groups: groups, such as family, that exert a strong influence on
attitudes and behaviours
● Secondary groups: groups such as clubs, societies, sports teams, political
parties, religions that align with a person's ideas or values, but exert a less
fundamental influence on the formation of attitudes and behaviours
● Aspirational groupsgroups to which an individual does not currently
belong, but possibly aspires to become a member because the group possesses
characteristics which are admired.
● Dissociative reference groups - a group which has a negative image;
individuals may disapprove of the disassociative group's values, attitudes or
behaviours and may seek to distance themselves from such groups.
● Opinion Leaders can act like reference groups in that they exert
considerable social influence because of their product knowledge, expertise
and credibility. In the marketing literature, opinion leaders are also known as
influencers, mavens and even hubs. Opinion leaders are specific to a product
category, so that an opinion leader for computers is not likely to be an opinion
leader for fashion. Typically, opinion leaders have high levels of involvement
with the product category, are heavy users of the category and tend to be early
adopters of new technologies within the category. Journalists, celebrities and
bloggers are good examples of an opinion leader due to their broad social
networks and increased ability to influence people's decisions. Indeed, recent
evidence suggests that bloggers may be emerging as a more important group
of opinion leaders than celebrities.

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In order to leverage the value of opinion leaders in marketing strategies, it is


important to be able to identify the unique opinion leaders for each category
or situation and this can be very challenging. Some techniques that can be
used are through key informants, socio-metric techniques and self-
questionnaires. More often, however, marketers use gut instinct to identify
opinion leaders. For example, marketers of athletic shoes have been known to
provide gym/ aerobic instructors with free shoes in the hope that class
members will adopt the same brand as the instructor. Marketers of cosmetics
and skincare preparations regularly provide fashion editors with free samples
in the hope that their products will be mentioned in fashion magazines.

Impulse buying

Impulse purchases are unplanned purchases. Impulse buying can be defined


as “a sudden and powerful urge to buy immediately” and occurs when a
consumer purchases an item which they had no intention of purchasing prior
to entering the store. Impulse buying can be influenced by external stimuli
such as store characteristics and sale promotions, internal stimuli such as
enjoyment and self-identity, situational and product related factors such as
time and money available, and demographic and socio-cultural factors such
as gender, age, and education. Stern introduced the four broad classifications
of impulse buying including pure impulse buying, reminded impulse buying,
suggestion impulse buying, and planned impulse buying:

Pure impulse buying

Occurs outside of the normal purchase behaviour where a consumer


experiences a strong emotion of desire towards a product that he/she did not
initially plan to buy. Online shopping largely contributes towards enabling
spontaneous buying. Consistent email alerts from subscribed websites about

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special offers, limited time discounts and flash sales, on some level, stealthily
create a sense of urgency for the consumer to purchase the product.

Reminded impulse buying

Occurs when a consumer remembers the need for a product by seeing it in a


store. This is triggered through various techniques such as in-store advertising
or sensory marketing. For example, a consumer may be reminded to buy
ingredients for a barbecue when he/she drives past a butcher store.

Suggestion impulse buying

Occurs when a consumer sees a product that they have no prior knowledge
about, envisions a use for it, and decides that they need it. An example of
impulse buying is when a consumer is encouraged to purchase an electric
hand-mixer after having picked up a brochure from the baking department of
a home-ware store. The brochure convinces the consumer of the hand-mixer's
superiority over the wooden spoon she has been using. Marketing techniques
that can also trigger suggestion impulse buying include long-term warranties
or a free trial period.

Planned impulse buying

Involves a partially planned intention of buying, however specific products or


categories are not yet determined. In this case, the consumer's purchasing
decision can be encouraged by retailing staff, or even their peers who can
persuade the consumer to purchase a substitute or provide reassurance about
an alternative brand choice.

Recent research carried out by Nielsen International suggests that about 72


percent of FMCG purchases are planned, but that 28 percent of supermarket
purchases are unplanned or impulse purchases. The top unplanned purchases
in the food category are candy (lollies), chocolate, cookies (biscuits), frozen

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desserts and snacks and the top unplanned purchases in the non-food
category are cosmetics, air-fresheners, toothbrushes, hand-soaps and
hand/body lotions. This explains why supermarkets place these types of
products at the front of the store or near the checkout where the consumer
spends more time and is more likely to notice them and therefore more likely
to pop them into the shopping basket. Retailers use insights from this type of
research to design stores in ways that maximise opportunities for impulse-
buying.

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CHAPTER - 4

DATA ANALYSIS

AND

INTERPRETATION

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4.1 Income scale


This table shows the ratings of Income scale at Flipkart
Table No.4.1

Options No .of Respondents Percentages


1 lakh and above 4 8
10001-25000 18 36
25001-50000 7 14
50000-100000 4 8
Below 10000 17 34
Total 50 100

Chart No 4.1
The chart 4.1 shows the ratings of Income scale at Flipkart

17

18

INTERPRETATION: -
Majority of customers are in the income group of 10001-25000 and 4% of
customer is in the income group of 50000-100000 & 100000 above..

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4.2 Online purchaser


This table shows the ratings of whether you are an online purchaser
Table No.4.2

Options No .of Respondents Percentages


Yes 50 100
No 0 0
Total 50 100

Chart No 4.2
The chart 4.2 shows the ratings of whether you are an online purchaser

No
0

Yes
50

0 10 20 30 40 50 60

INTERPRETATION: -
The above data shows that 100% respondents were online purchasers.

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4.3 Preference of online app for shopping


This table shows the ratings of name the app that you give more preference for
shopping
Table No.4.3

Comments No .of Respondents Percentages


Amazon 3 6
Flipkart 40 80
Meesho 3 6
Myntra 4 8
Total 50 100

Chart No 4.3
The chart 4.3 shows the ratings of name the app that you give more preference
for shopping

Myntra
4

Meesho
3

Flipkart
40

Amazon
3

0 5 10 15 20 25 30 35 40 45

INTERPRETATION: -
The above data shows that 80% of respondents give preference to flipkart, 8%
prefer Myntra, 6% prefer amazon and Meesho.

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4.4 Frequently purchased product


This table shows the ratings of name of product you buy frequently in flipkart
Table No.4.4

Comments No .of Respondents Percentages


Cosmetics 2 4
Fashion 33 66
Electronics 10 20
Book & Stationery 4 8
Home Decor 1 2
Total 50 100

Chart No 4.4
The chart 4.4 shows the ratings of name of product you buy frequently in
flipkart
35 33

30

25

20

15

10
10

5 4
2
1
0
Cosmetics Fashion Electronics Book & Stationery Home Decor

INTERPRETATION: -
The above data shows that 66% of respondents buy Fashion products in
flipkart, 4% buy Cosmetics, 2% buy Home decor.

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4.5 Amount that spent on single purchase


This table shows the ratings of average amount spent on single purchase
Table No.4.5

Comments No .of Respondents Percentages


Above 5000 3 6
Less than 5000 1 2
Less than 3000 10 20
Less than 1000 25 50
Less than 500 11 22
Total 50 100

Chart No 4.5
The chart 4.5 shows the ratings of average amount spend on a single purchase
30

25 25

20

15

11
10 10

5
3
1
0
Above 5000 Less than 5000 Less than 3000 Less than 1000 Less than 500

INTERPRETATION: -
The above data shows that 50% of respondent’s average spent on a single
purchase is less than 1000, 6% of respondent’s average spent on a single
purchase is above 5000, 2% of respondent’s average spent on a single purchase
is less than 5000

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4.6 Years of being as a flipkart customer


This table shows the number of years of being as a flipkart customer
Table No.4.6
Comments No .of Respondents Percentages
1 yr 6 12
2 yr 12 24
3 yr 16 32
4 yr 8 16
More than 5 yr 8 16
Total 50 100

Chart No 4.6
The chart 4.6 shows the ratings of the number of years that being as a filpkart
customer

0 0

8 6

8 12

16

INTERPRETATION: -
The above data shows that 32% are customers of flipkart since 3 years, 16%
respondents are customers of flipkart for more than 5 years.

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4.7 Product buy in a single purchase


This table shows the ratings of average number of products that buy in a single
purchase
Table No.4.7

Comments No .of Respondents Percentages


1 Item 22 44
2-5 Item 24 48
6-9 Item 2 4
10-13 Item 2 4
More than 13 Items 0 0
Total 50 100
Chart No 4.7
The chart 4.7 shows the ratings of average number of products that buy in a
single purchase

10-13 Item
2

6-9 Item
2

2-5 Item
24

1 Item
22

0 5 10 15 20 25 30

INTERPRETATION: -
The above data shows that 48% of respondent’s buy an average of 2-5 items in
a single purchase, 44% buy an average of 1 item in a single purchase,4% buy
an average of 10-13 items in a single purchase.

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4.8 Online shopping frequency


This table shows the ratings of frequency of online shopping in flipkart
Table No.4.8
Comments Points No .of Respondents Total
Never 1 1 1
Occasionally 2 16 32
Sometimes 3 28 84
Often 4 3 12
Always 5 2 10

Total Points = 139 = 2.78


Total No. of respondents 50
Chart No 4.8
The chart 4.8 shows the ratings of frequency of online shopping in flipkart
30 28

25

20
16
15

10

5 3
2
1
0
Always Never Occasionally Often Sometimes

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
most of the respondent have a neutral opinion (sometimes,point approximately
equal to 3)about the frequency of purchase.

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4.9 Opinion about flipkart shopping.


This table shows the ratings about Opinion about flipkart shopping
Table No.4.9
No.of
Comments Points Total
Respondents
Very Poor 1 0 0
Poor 2 1 2
Fair 3 11 33
Good 4 33 132
Excellent 5 5 25
Total 50 100

Total Points = 192 =3.84


Total No. of respondents 50

Chart No 4.9
The chart 4.9 shows the ratings about the opinion about flipkart shopping

1 5

11

33

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
most of the respondent have a Good opinion (point approximately equal to
4)on flipkart shopping.

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Consumer Behaviour Flipkart

4.10 Problems faced during online purchasing


This table shows the ratings of any problem during online purchase from
flipkart
Table No. 4.10
Comments No .of Respondents Percentages
Yes 9 18
No 41 82
Total 50 100

Chart No 4.10
The chart 4.10 shows the ratings about any problem during online purchase
from flipkart

No

41

Yes

0 5 10 15 20 25 30 35 40 45

INTERPRETATION: -
The above data shows that 82% of respondents do not have any problem
during online shopping, 18% have problems during online shopping.

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4.11 Service satisfaction level of delivery boy


This table shows the ratings of the service of the delivery boy
Table No.4.11
No .of
Comments Points Total
Respondents
Strongly disagree 1 1 1
Disagree 2 1 2
Neutral 3 7 21
Agree 4 30 120
Strongly agree 5 11 55

Total Points = 199 =3.98


Total No. of respondents 50

Chart No 4.11
The chart 4.11 shows the ratings of the service of the delivery boy

Strongly disagree
1
Strongly agree
11
Neither agree or Disagree
7
Disagree
1
Agree
30
0 5 10 15 20 25 30 35

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an
average most of the respondent have agreed (point approximately equal to
4)that they satisfied with the service of delivery boy.

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4.12 Delivery Time

This table shows the ratings whether the product that ordered from flipkart is
delivered on time

Table 4.12

No .of
Comments Points Total
Respondents

Strongly disagree 1 1 1
Disagree 2 0 0
Neutral 3 10 30
Agree 4 32 128
Strongly agree 5 7 35

Total Points = 194 =3.88


Total No. of respondents 50

Chart No 4.12
The chart 4.12 shows the ratings whether the product that ordered from
flipkart is delivered on time

10
32

Agree Neither agree or dis agree Strongly agree Strongly disagree

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
of 4 ,most of the respondent getting their ordered products on time

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4.13 Total product quality on flipkart

This table shows the ratings whether you agree with this statement "All the
products in flipkart have high quality"

Table 4.13

No .of
Comments Points Total
Respondents

Strongly disagree 1 1 1
Disagree 2 9 18
Neutral 3 24 72
Agree 4 15 60
Strongly agree 5 1 5

Total Points = 156 =3.12


Total No. of respondents 50

Chart No 4.13
The chart 4.13 shows the ratings whether you agree with this statement " All
the products in flipkart have high quality"

Strongly disagree
1
Strongly agree
1
Neither agree or disagree
24
Disagree
9
Agree
15
0 5 10 15 20 25 30

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an
average most of the respondent have a neutral opinion ie, point 3

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4.14 Complaints towards flipkart


This table shows if you ever had a complaint towards flipkart

Table 4.14

Comments No .of Respondents Percentages

No 46 92
Yes 4 8
Grand Total 50 100

Chart No 4.14
The chart 4.14 shows if you ever had a complaint towards flipkart

46

INTERPRETATION: -
The above data shows that 92% of respondents do not have any complaint
towards flipkart, 8 % have any complaint towards flipkart.

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Consumer Behaviour Flipkart

4.15 Getting products on time

This table shows whether you get your ordered products on time

Table 4.15

Comments No .of Respondents Percentages

Yes 46 92
No 4 8
Grand Total 50 100

Chart No 4.15
The chart 4.15 shows whether you get your ordered products on time

46

INTERPRETATION: -
The above data shows that 92% of respondents got their ordered products on
time. 8% of respondents did not get their ordered products on time.

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4.16 Safety measures taken by flipkart

This table shows whether you agree with this sentence "flipkart is taking all
safety measures while making each product delivery"
Table 4.16

No . of
Comments Points Total
Respondents

Strongly disagree 1 0 0

Disagree 2 1 2

Neutral 3 17 51

Agree 4 27 108

Strongly agree 5 5 25

Total Points = 186 =3.72


Total No. of respondents 50

Chart No 4.16
The chart 4.16 shows whether you agree with this sentence "flipkart is taking all
safety measures while making each product delivery"
30 27
25
20 17
15
10
5
5 1
0
Agree Disagree Neither agree or Strongly agree
disagree

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
most of the respondent have agreed (point approximately equal to 4)that flipkart
is taking all the safety measures

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4.17 Satisfaction on Product Quality

This table shows whether you are satisfied on the quality of the delivered product

Table 4.17

No . of
Comments Points Percentages
Respondents

Not at all satisfied 1 3 3

Slightly satisfied 2 5 10

Moderately satisfied 3 26 78

Very satisfied 4 14 56

Extremely satisfied 5 2 10

Total Points = 157 =3.14


Total No. of respondents 50

Chart No 4.17
The chart 4.17 shows whether you are satisfied on the quality of the delivered
Product

Very satisfied
14
Slightly satisfied
5
Not at all satisfied
3
Moderately satisfied
26
Extremely satisfied
2
0 5 10 15 20 25 30

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
most of the respondent have a neutral opinion (that is point 3
approximately)about the product quality.

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4.18 Familiarity among peers

This table shows whether flipkart app familiar among your peers

Table 4.18

No . of
Comments Percentages
Respondents

Yes 47 94

No 3 6

Grand Total 50 100

Chart No 4.18
The chart 4.18 shows whether flipkart app familiar among your peers

47

INTERPRETATION: -
The above data shows that 94% of the respondents are familiar with flipkart app,
6 % are not familiar with flipkart app.

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4.19 Quality of discounted products

This table shows rating about the quality that you feel on the discounted products

Table 4.19

Comments Points No . of Total


Respondents

Very Poor 1 0 0
Poor 2 5 10
Fair 3 25 75
Good 4 17 68
Excellent 5 3 15

Total Points = 168 =3.36


Total No. of respondents 50

Chart No 4.19
The chart 4.19 shows rating about the quality that you feel on the discounted
products
30
25 25
20
17
15
10
5 5
3
0
Excellent Fair Good Poor

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an
average most of the respondent that is point 3 approximately have a fair
opinion about the quality of discounted products.

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4.20 Flipkart purchasing factors

This table shows the factors which influence the purchase on flipkart

Table 4.20
On
Ease To
Quality Quantity Price Time
Purchase
Delivery
1 6 6 13 12 12
2 19 18 8 8 10
3 12 13 17 8 8
4 8 8 9 15 5
5 5 5 3 7 5

Quality = 6 + 38 + 36 + 32 + 25 = 137 = 2.74


50 50

Quantity = 6 + 36 + 39 + 32 + 25 = 138 = 2.76


50 50

Price = 13+16+51+36 +15 = 131 = 2.62


50 50

Ease to Purchase = 12+16+24+60 +35 = 147 = 2.94


50 50

Online Delivery = 12+20+24+20 +25 = 101 = 2.02


50 50

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Consumer Behaviour Flipkart

Chart 4.20
3.5
2.94
3 2.74 2.76 2.62
2.5 2.02
2
1.5
1
0.5
0
Quality Quantity Price Ease to Purchase Online Delivery

INTERPRETATION: -
From the above data analysis, we could found that the respondents have an
opinion about the factor which range between 2 to 3 points . In that, most
influential factor is ‘ease of purchase’ with 3 points approximately and the least
influential factor is ‘on time delivery’ with 2 points.

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Consumer Behaviour Flipkart

4.21 Deliver Non-Defective Products

This table shows rating about whether you agree with the statement Flipkart
deliver undamaged products always
Table 4.21

No . of
Comments Points Total
Respondents

Strongly Disagree 1 2 2

Disagree 2 5 10

Neutral 3 3 9

Agree 4 10 40

Strongly Agree 5 30 150

Total Points = 211 =4.22


Total No. of respondents 50

Chart No 4.21
The chart 4.21 shows rating about whether you agree with the statement Flipkart
deliver undamaged products always

2
5
3

30 10

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
most of the respondent that is point 4 approximately agree that flipkart always
delivers non-defective products..

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Consumer Behaviour Flipkart

4.22 Availability to your location

This table shows rating about whether product delivery possible to your location
Table 4.22
No . of
Comments Percentages
Respondents

Yes 40 80

No 10 20

Grand Total 50 100

Chart No 4.22
The chart 4.22 shows rating about whether product delivery possible to your
location
50
40
40

30

20
10
10

0
Yes No

INTERPRETATION: -
The above data shows that 80% responded that product delivery is possible to
their location, 20% responded that product delivery is not possible to their
location.

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4.23 Buying behavior during covid pandemic

This table shows rating about whether During Covid Pandemic online purchase
increased
Table 4.23
No . of
Comments Points Total
Respondents

Strongly Disagree 1 0 0

Disagree 2 1 2

Nuetral 3 1 3

Agree 4 8 32

Strongly Agree 5 40 200

Total Points = 237 =4.74


Total No. of respondents 50

Chart No 4.23
The chart 4.23 shows rating about whether During Covid Pandemic online
purchase increased
50
40 40
30
20
10 8
0 0 1 1
Strongly Disagree Nuetral Agree Strongly Agree
Disagree

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
most of the respondent that is point 5 respondents strongly agree that online
buying increased during covid pandemic

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4.24 Price Comparison Online market v/s Traditional market

This table shows rating about whether the products available online are priced
lower in comparison to traditional market
Table 4.24
No . of
Comments Points Total
Respondents

Strongly Disagree 1 0 0

Disagree 2 2 4

Neutral 3 3 9

Agree 4 10 40

Strongly Agree 5 35 175

Total Points = 228 =4.56


Total No. of respondents 50

Chart No 4.24
The chart 4.24 shows rating about whether the products available online are
priced lower in comparison to traditional market

Strongly Agree
40
Agree
8
Nuetral
1
Disagree
1
Strongly Disagree
0
0 5 10 15 20 25 30 35 40 45

INTERPRETATION: -
From above the analysis using likert scale , we can interpret that on an average
most of the respondent that is point 5 have strongly agree on the price comparison
between traditional market and online purchase

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Consumer Behaviour Flipkart

4.25 Recommendation of flipkart to your friends & relatives

This table shows rating about whether you will recommend flipkart to your
friends and relatives
Table 4.25
No . of
Comments Percentages
Respondents

Yes 47 94

No 3 6

Grand Total 50 100

Chart No 4.25
The chart 4.25 shows rating about whether you will recommend flipkart to your
friends and relatives

47

INTERPRETATION: -
The above data shows that 94% responded that they will recommend flipkart to
your friends and relatives, 6 % disagreed to recommend flipkart to your friends
and relative.

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Consumer Behaviour Flipkart

CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION

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5.1 FINDINGS
• Majority of customers are in the income group of 10001-25000 and 4% of
customer is in the income group of 50000-100000 & 100000 above.
• 100% respondents were online purchasers.
• 80% of respondents give preference to flipkart, 8% prefer Myntra, 6%
prefer amazon and Meesho
• 66% of respondents buy Fashion products in flipkart, 50% buy Cosmetics,
2% buy Home décor
• As per the study, 50% of respondent’s average spent on a single purchase
is less than 1000, 6% of respondent’s average spent on a single purchase
is above 5000, 2% of respondent’s average spent on a single purchase is
less than 5000
• The data shows that 32% are customers of flipkart since 3 years, 16%
respondents are customers of flipkart for more than 5 years.
• The data shows that 48% of respondent’s buy an average of 2-5 items in a
single purchase, 44% buy an average of 1 item in a single purchase,4%
buy an average of 10-13 items in a single purchase.
• From above the analysis using likert scale , we can interpret that on an
average most of the respondent have a neutral opinion (sometimes,point
approximately equal to 3)about the frequency of purchase
• From above the analysis using likert scale , we can interpret that on an
average most of the respondent have a Good opinion (point approximately
equal to 4)on flipkart shopping.
• 82% of respondents do not have any problem during online shopping, 18%
have problems during online shopping
• From above the analysis using likert scale , we can interpret that on an
average most of the respondent have agreed (point approximately equal to
4)that they satisfied with the service of delivery boy.

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Consumer Behaviour Flipkart

• From above the analysis using likert scale , we can interpret that on an
average of 4 ,most of the respondent getting their ordered products on
time
• From above the analysis using likert scale , we can interpret that on an
average most of the respondent have a neutral opinion ie, point 3
• 92% of respondents do not have any complaint towards flipkart, 8 % have
any complaint towards flipkart
• 92% of respondents got their ordered products on time. 8% of respondents
did not get their ordered products on time
• From above the analysis using likert scale , we can interpret that on an
average most of the respondent have agreed (point approximately equal to
3)that flipkart is taking all the safety measures
• From above the analysis using likert scale, we can interpret that on an
average most of the respondent have a neutral opinion (that is point 3
approximately)about the product quality.
• 94% of the respondents are familiar with flipkart app, 6 % are not familiar
with flipkart app.
• From above the analysis using likert scale, we can interpret that on an
average most of the respondent that is point 3 approximately have a fair
opinion about the quality of discounted products.
• From the above data analysis, we could found that the respondents have an
opinion about the factor which range between 2 to 3 points. In that, most
influential factor is ‘ease of purchase’ with 3 points approximately and the
least influential factor is ‘on time delivery’ with 2 points.
• From above the analysis using likert scale, we can interpret that on an
average most of the respondent that is point 4 approximately agree that
flipkart always delivers non-defective products.

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Consumer Behaviour Flipkart

• 80% responded that product delivery is possible to their location, 20%


responded that product delivery is not possible to their location.
• From above the analysis using likert scale, we can interpret that on an
average most of the respondent that is point 5 respondents strongly agree
that online buying increased during covid pandemic.
• From above the analysis using likert scale , we can interpret that on an
average most of the respondent that is point 5 have strongly agree on the
price comparison between traditional market and online purchase
• 94% responded that they will recommend flipkart to your friends and
relatives, 6 % disagreed to recommend flipkart to your friends and relative.

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Consumer Behaviour Flipkart

5.2 SUGGESTIONS
• There is difficulty in returning products. Reduce the complications in
returning the products.
• Most of the customers have risk of online transactions. Use an internet or
temporary card for shopping for reducing risk.
• Choose online stores carefully. Buy only from trusted sellers.
• Find reviews about the online store.
• There is internet illiteracy in some customers so try to know more about
internet and online shopping.
• Avoid the hidden/shipping charges for better customer satisfaction
• Provide variety of product choices in terms of sorting and filtering as per
individual requirements and seller ratings in online stores.
• There are so many factors that in refraining the customers from shopping
on the internet so give solutions to the problems that they face for ease of
shopping.
• During purchasing time carefully read the product return policy.

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Consumer Behaviour Flipkart

5.3 CONCLUSION

The project in titled " online buying behaviour among youth in flipkart
with special reference to Thrissur District" The objectives set for the study was
almost accomplished. The analysis was done based on the information
collected in the form of questionnaire from the customers. The major part of
the analysis is based upon the percentage analysis and likert scale analysis. As
a management student it was a good experience. This project examined the
online buying behavior among youth in reference to Thrissur district at flipkart.
In these days online buying behavior is higher than traditional shopping. It is
because of the Quality of products, Quantity of products, Ease to purchase, On
time delivery,and the development of technology has an greatest impact on the
buying behavior of youth. Here we are considering the age category of youth
(between 15&24) to study the buying behavior. These age group of people
contain a impulse buying behavior. They will not rethink if it is needed or not,
they just click and buy whatever they want.

This study have two objectives, primary objective and secondary


objective. Primary objective is that, to know the online buying behaviour of
youth in Thrissur. From the study it is clear that youth in Thrissur district have
an impulse buying behavior. As result of the study secondary objective states
that, most of the customers are females and majority of them are in the income
group of 10001-25000, and the Quality, quantity, ease to purchase following
all rules are the major reasons behind the preferring flipkart as a buying
platform. After the study, it has been observed that everyone has faced
difficulties during the lockdown and the customer has changed their behaviour.
It has been observed that most of them chosen online shopping because of
worried about being infected.

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Majority of the customers shops fashion products on online. The


customers purchase more non essential goods online during lockdown period.
The customers strongly agree that the products in online shops are good.
Quality, quantity, ease to purchase on the following all rules are the major
reasons behind the preferring flipkart as a buying platform.

The study showed the significant relationship among various determinants


that influence impulses buying behavior of youth.

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BIBLIOGRAPHY
BOOKS

• Research methodology, C.R Kothari published by Lobrifor visa


prakash, Tenth edition.
• L.R Potti, R.M Yamuna publications

NEWSPAPER

• The Hindu and Times of India

JOURNALS

• Bailey.G. and Nancarrow.c.(1998),Impulse purchasing:a qualitative


exploration of the phenomenon
• Beatty.S.E, and ferrel,M.E(1998) Impulse buying:modelling its
precursors
• Gardener,M, and Rook,D(1998) effects of impulse purchase
• Kuo.c and Russell(1999) online buying behavior

WEBSITES

https://www.flipkart.com/

https://en.wikipedia.org/wiki/E-commerce

https://en.wikipedia.org/wiki/Consumer_behaviour

https://www.investopedia.com/terms/e/ecommerce.

https://www.shipbob.com/blog/online-consumer-behavior/

https://en.wikipedia.org/wiki/Flipkart

https://www.demandjump.com/blog/what-is-consumer-buying-
behaviorhttps://www.omniconvert.com/blog/consumer-behavior-in-
marketing-patterns-types-segmentation/
APPENDIX
QUESTIONNAIRE

Dear respondent,

I am ARSHA RAJ V doing BBA at St. Mary’s college Thrissur affiliated to


the University of Calicut. As a part of my curriculum, I am undertaking
“ONLINE BUYING BEHAVIOUR AMONG YOUTH IN FLIPKART
WITH REFERENCE TO THRISSUR DISTRICT”. I request your kind co-
operation in providing me with necessary information. I assure that the
information collected will be used only for my academic purpose.

Personal Information
Name :

Location :

Age :

Gender : ☐ Male ☐ Female

1. Income scale

a) Below 10000 ☐

b) 10001 - 25000 ☐

c) 25001 - 50000 ☐

d) 50000 - 100000 ☐

e) 1lakh and above ☐


2. Are you an online purchaser?

a) Yes ☐

b) No ☐

3. If yes name the app that you give more preference for shopping

a) Flipkart ☐
b) Amazon ☐
c) Meesho ☐
d) Mynthra ☐
e) Zara ☐

4. The product that you buy frequently in flipkart

a) Fashion ☐
b) Book & Stationery ☐
c) Electronics ☐
d) Cosmetics ☐
e) Home Décor ☐

5. Average amount spend on a single purchase

a) less than 500 ☐


b) less than 1000 ☐
c) less than 3000 ☐
d) less than 5000 ☐
e) above 5000 ☐
6. The Give the number of years that being as a an flipkart customer
a) 1 Year ☐
b) 2 Years ☐
c) 3 Years ☐
d) 4 Years ☐
e) More than 5 Years ☐

7. Average number of products that buy in a single purchase

a) 1 item ☐
b) 2 – 5 items ☐
c) 6 – 9 items ☐
d) 10 – 13 items ☐
e) More than 13 items ☐

8. Frequency of your online shopping in flipkart

a) Never ☐
b) Occassionaly ☐
c) Sometimes ☐
d) Often ☐
e) Always ☐

9. Your opinion about flipkart shopping

a) Very poor ☐

b) Poor ☐
c) Fair ☐

d) Good ☐

e) Excellent ☐

10.Do you ever face any problem during online purchase from flipkart.

a) Yes ☐
b) No ☐
c) If No, comment ☐

11.Are you satisfied with the service of the delivery boy.


Strongly disagree

a) Strongly disagree ☐
b) Disagree ☐
c) Neutral ☐
d) Agree ☐
e) Strongly agree ☐

12.The product that ordered from flipkart is delivered on time.


a) Strongly disagree ☐
b) Disagree ☐
c) Neutral ☐
d) Agree ☐
e) Strongly agree ☐
13.Are you agree with this statement " The all products in flipkart have
high quality".

a) Strongly disagree ☐
b) Disagree ☐
c) Neutral ☐
d) Agree ☐
e) Strongly agree ☐

14.Do you ever had a complaint towards flipkart?

a) Yes ☐
b) No ☐

15.Do you get your ordered products on time?

a) Yes ☐
b) No ☐

16.Do you agree with this sentence "flipkart is taking all safety measures
while making each product delivery"?
a) Strongly disagree ☐
b) Disagree ☐
c) Neutral ☐
d) Agree ☐
e) Strongly disagree ☐
17.Are you satisfied on the quality of the delivered product

a) Not at all satisfied ☐

b) Slightly satisfied ☐

c) Moderately satisfied ☐

d) Completely satisfied ☐

18.Is flipkart app familiar among your peers?

a) Yes ☐
b) No ☐

19.The quality that you feels on the discounted products

a) Very poor ☐
b) Poor ☐
c) Fair ☐
d) Good ☐
e) Excellent ☐

20.Factors which influence the purchase on flipkart

1 2 3 4 5

a) Quality ☐ ☐ ☐ ☐ ☐

b) Quantity ☐ ☐ ☐ ☐ ☐

c) Price ☐ ☐ ☐ ☐ ☐
d) Ease of Purchase ☐ ☐ ☐ ☐ ☐

e) On time delivery ☐ ☐ ☐ ☐ ☐

21.Do you agree with this sentence “Flipkart delivers undamaged


products always”?
a) Strongly disagree ☐
b) Disagree ☐
c) Neutral ☐
d) Agree ☐
e) Strongly disagree ☐

22.Is product delivery possible to your location?


a) Yes ☐
b) No ☐

23.On the time of COVID pandemic online purchase increased?


a) Strongly disagree ☐
b) Disagree ☐
c) Neutral ☐
d) Agree ☐
e) Strongly disagree ☐
24.The products available online are priced low in comparison to
traditional market.
a) Strongly disagree ☐
b) Disagree ☐
c) Neutral ☐
d) Agree ☐
e) Strongly disagree ☐

25.Do you recommend flipkart to your friends and relatives

a) Yes ☐
b) No ☐

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