Bhagyashree Specialization

A
PROJECT REPORT
ON
TO STUDY CUSTOMER PREFERENCES
IN CHOOSING
AMAZON
MASTER OF MANAGEMENT STUDIES (MMS)
UNIVERSITY OF MUMBAI
SUBMITTED TO
SINHGAD INSTITUTE OF BUSINESS MANAGEMENT
CHANDIVALI
UNDER THE GUIDANCE OF

PROF. SHYAMKANT SURVE
SUBMITTED BY
BHAGYASHREE JADEJA
BATCH 2017 – 2019
ROLL NO. 31
MARKETING
Page | 1
CERTIFICATE
This is to certify that _______________________________ has
successfully completed the project work as a part of academic fulfillment of Masters
of Management Studies (M.M.S.) semester IV examination.
Name & Signature of Project Guide
Date : _________________
DIRECTOR
SIBM
Page | 2
DECLARATION
I, Bhagyashree Jadeja of Master of Management Studies IVth Semester of Sinhgad
Institute of Business Management (SIBM), hereby declare that I have successfully
completed this Project on To understand the Customer Preferences in choosing
Amazon in the academic year 2017-2019.
The information incorporated in this project is true and original to the best of my
knowledge.
_____________________________
Signature
Page | 3
ACKNOWLEDGEMENT
I, Bhagyashree Jadeja, student of Sinhgad Institute of Business Management, Mumbai

have taken efforts in this project, however it would not have been possible without
support and guidance of many individual and organization.
I hereby take this opportunity to express my sincere gratitude to Prof. Shyamkant

Surve for his constant support, guidance, motivation and providing me with necessary
input and valuable suggestions from time to time during the project.
Finally, I would like to thank one and all who have helped me directly or indirectly
in preparing this report.
Page | 4
INDEX
S No Particulars Page No
A PRELIMINARY SECTION 01 – 04
• Title Page
• Certificate
• Declaration
• Acknowledgement
B MAIN BODY OF THE REPORT 06 – 20
I Introduction
• Executive summary
• E-commerce in India
• About Amazon
• Marketing Strategy
• SWOT analysis
• Objective of study
• Limitations
II Design of the study

21 – 25
• Research design
• Sources of data
• Data collection tool
• Technique of analysis
III Presentation and Analysis of data 26 – 50
• Text
• Tables
• Figures
IV Findings and Recommendation

51 – 54
• Main findings and conclusions
• Recommendations
C REFERENCE SECTION 55 – 60
• Appendix
• Bibliography
Page | 5
I. INTRODUCTION
Page | 6
EXECUTIVE SUMMARY
Internet is powerful and basic tool for every person’s need and the way people work
today. By integrating various online information management tools using internet,
innovative companies like Amazon have set up systems for taking customers orders,
facilitate making of payments, customer service, collection of marketing data, and
online feedback respectively. These activities are collectively known as e-commerce
or Internet commerce. Online shopping is made so easy for everyone with their
product variations and simple way to buy things.
In this scenario, the firms have to work on what attracts consumers and what will
make them not to shift their choice towards competitors. Working out strategies in
this direction requires a thorough understanding of the preferences of the consumers
on the attributes that are considered of much significance.
This study focuses on analyzing the consumer’s preferences of the specific attributes
of e-commerce sites in India. The study starts with reviewing the earlier works in this
area, the objective of the study and the research methodology used.
Page | 7
E-COMMERCE IN INDIA
The e-commerce has transformed the way business is done in India. The Indian e-
commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5
billion as of 2017. Much growth of the industry has been triggered by increasing
internet and smart phone penetration. The ongoing digital transformation in the
country is expected to increase India’s total internet user base to 829 million by 2021
from 560.01 million as of September 2018. India’s internet economy is expected to
double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly
backed by ecommerce. India’s E-commerce revenue is expected to jump from US$ 39
billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51 per cent,
the highest in the world.
MARKET SIZE
Propelled by rising smart phone penetration, the launch of 4G networks and

increasing consumer wealth, the Indian e-commerce market is expected to grow to
US$ 200 billion by 2026 from US$ 38.5 billion in 2017 Online retail sales in India are
expected to grow by 31 per cent to touch US$ 32.70 billion in 2018, led by Flipkart,
Amazon India and Paytm Mall.
During 2018, electronics is currently the biggest contributor to online retail sales in
India with a share of 48 per cent, followed closely by apparel at 29 per cent.
Page | 8
Key drivers in Indian e-commerce are :
❖ Large percentage of population subscribed to broadband

internet, 3ginternetusers, and now 4gacross the country.
❖ Explosive growth of smart phone users, soon to be world's second largest

smart phone user base.
❖ Rising standards of living as result of fast decline in poverty rate.
❖ Availability of much wider product range compared to what is available at

brick and mortar retailers.
❖ Competitive prices compared to brick and mortar retail driven by disinter

mediation and reduced inventory and real estate costs.
❖ Increased usage of online classified sites, with more consumer buying and
selling second-hand goods
Page | 9
ABOUT AMAZON
Amazon.com, Inc. is an e-commerce and cloud computing company headquartered in

Seattle, Washington.Amazon.com was founded by Jeff Bezos on July 5, 1994, and
started as an online bookstore but later diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/str
eaming, software, video games, electronics, apparel, furniture, food, toys, and
jewellery.
The company also owns a publishing arm, Amazon Publishing, a film and television
studio, Amazon Studios, produces consumer electronics lines including Kindle e-
readers, Fire tablets, Fire TV, and Echo devices.
Amazon has separate retail websites for some countries and also offers international
shipping of some of its products to certain other countries.
Amazon.com's product lines available at its website include several media (books,
DVDs, music CDs, videotapes and software), apparel, baby products, consumer
electronics, beauty products, gourmet food, groceries, health and personal-care items,
industrial & scientific supplies, kitchen items, jewellery, watches, lawn and garden
items, musical instruments, sporting goods, tools, automotive items and toys &
games.
Page | 10
MARKETING STRATEGY
Segmentation, targeting, positioning in the Marketing strategy of Amazon
E-commerce giants like Amazon uses demographic & psychographic segmentation to

segment the markets. Amazon’s segmentation is based on actual purchase behaviour:
not what people might have expressed interest in, but what they actually did.
Amazon’s micro-level segmentation targets each customer individually, allowing the
company to convert visitors into long-term, high-value customers.
E-commerce segmentation often involves creating personas who will buy in a certain
way & certain products. Similarly Amazon targets the middle class & upper class
people who have got hands on experience in the basic technology but don’t have time
or prefer convenience over shopping from the physical outlets.
Amazon has successfully positioned itself as a Glocal (Go global Act local) e-
commerce giant where one can buy anything & get it delivered at any remote
locations.
In order to differentiate itself, company acquired many IT & e-commerce start-ups

like pets.com,audible.com, junglee.com, imbd.com, zappos.com, woot etc. Which
helped them in providing high value to their customers using existing technology of
the acquired partners at low cost.
Distribution strategy
Amazon realizes that the most important thing that customers want is the quick
delivery of products they order. This is where Amazon’s extensive distribution
system has come into play.
Amazon’s new “under-the-tent” strategy of using existing vendor warehouse space for
consumer-packaged goods to more quickly serve customers. Their aggressive
strategy of infiltrating warehouses and improving their distribution lines brings
Amazon to new areas and customers.
Page | 11
Brand equity
From being merely an e-book provider to emerging as the one of the largest e-
commerce company in the world, Amazon.com has steadily increased its spending on
advertising and promotion to make its brand stronger and have a higher brand equity.
Competitive analysis
Short listing the competitors of Amazon depends on what business sector of Amazon
is being considered.
In developing countries as well as in developed, there are many local portals which
give tough competition to Amazon. For example – Snapdeal, Flipkart are some of the
competitors of Amazon. Thus, these local competitors of each country also react
strongly to Amazon’s presence.
Thus continuously understanding the market and competitors really well make a big
difference for Amazon.
Customer analysis in the Marketing strategy of Amazon
Amazon customers consist of upper & middle class social groups who have
inclination towards using E-commerce portals and are comfortable with online
shopping. Majority of the customers are professionals or businessmen who are busy
with their business/Job & find it convenient to purchase anything online rather than
visiting the physical outlet in order to save time & money.
Furthermore, the customers might also be the ones who are searching for deals. Due
to this, the portal is known to have specific days where they give massive discounts to
their buyers.
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ADVERTISING
Orchard advertising India is Amazon India’s advertising agency. Orchard advertising

India highlights the benefits of shopping on Amazon.com
Conceptualized and executed by Orchard India it shows Amazon as a reliable place to
shop from with original products, easy return policies and on-time delivery.
In the past, Amazon India has created ad campaigns that have been an extension to
#ApniDukaan campaign. For instance, it had launched the ‘Adjust No More’ campaign as an
extension of the Apni Dukaan campaign. During the same month, it also launched the
#MomBeAGirlAgain ad campaign to celebrate mothers and the sacrifices they made for their
family.
The positioning of new ad campaign intends to showcase Amazon as a dominant brand by

saying that majority of Indians buy from Amazon and therefore prompting the question - why
shouldn’t you buy from Amazon too?
‘Apni Dukaan’as a thought came into being last year as Amazon became a more familiar and
trusted store for crores of customers across India, and “Sab Amazon Waale” is a celebration
of these customers that have placed their trust in the brand over the years.
AMOUNT SPENT ON ADVERTISEMENT
Amazon India spent between Rs 700 crore and Rs 850 crore on advertising in 2018,
according to an analysis by the brokerage firm Edelweiss Securities. This was almost
twice the Walmart-owned Flipkart’s ad spend of between an estimated Rs450 crore
and Rs 550 crore.
These numbers place Amazon India at the fourth rank in the list of India’s top
advertisers, far ahead of Flipkart (13th rank). Amazon, however, dropped two places
from 2017 while Flipkart rose 11 ranks.
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SWOT ANALYSIS
STRENGHTS:
Strong background and deep pockets: built on its early successes with books,
Amazon now has product categories that include electronics, toys, games, home and
kitchen, white goods, brown goods and much more. Amazon has evolved as a global
e-commerce giant in the last 2 decades.
Customer centric: company’s robust CRM has created customer centric processes in
order to carefully record data on customer’s buying behaviour. This enables them to
offer individual items, related items or bundle them as an offer, based upon
preferences demonstrated through purchases or items visited. Also, the company
claims that 55% of their customers are repeat buyers resulting in low cost of
acquisition of new buyers.
Cost leadership: in order to differentiate itself, company has created several strategic
alliances with other companies to offer superior customer service. The most important
strategic tie ups are with logistics provides who control costs. Because of playing one
economies of scale, Amazon is able to lower the inventory replenishment time.
Efficient delivery network: with its strategic partners & due to its Amazon
fulfilment centres, Amazon has created a deep & structured network in order to make
the product available even at remote locations. It also has free of cost delivery charges
in certain geographies.
Glocal strategy: by using the strategy of “go global & act local”,Amazon is able to
fight with domestic e-commerce companies through absorbing & by forming /
partnering with supply chain companies. The branding too is done as per local taste.
For example- in India, Amazon is currently using the “aur dikhao” campaign to
encourage users to browse more of their products.
Acquisitions: acquiring companies like zappos.com, junglee.com, imbd.com,

woot.com etc. Has proven to be a successful and revenue generating step for the e
commerce giant.
Page | 14
WEAKNESS
Shrinking margins: due to extensive delivery network & price wars Amazons
margins are shrinking, which is resulting in even losses. In India, Amazon had a loss
of $359 crs in the year 2013-14.
Tax avoidance issue: Amazon has attracted negative publicity on account of tax
avoidance in countries like U.S & U.K Most of its revenue is generated from these
well established markets.
High debt: in many developing nations Amazon is still struggling to make the
business profitable thereby affecting the overall profitability of the group resulting
into high debt.
Product flops: Amazon launched the fire phone in the U.S which was a big flop. At
the same time, kindle fire did not pick up as strongly as kindle did. Thus, there were
several product flops which caused a dent in Amazon’s deep pockets.
Page | 15
OPPORTUNITIES:
Backward integration: Amazon can come up with its in-house brands in

different product categories. They can also differentiate their offering. This will help t
hem make profits in highly competitive e-commerce market.
Global expansion: expansion mainly in Asian & developing economies will help
Amazon because those are the markets with low competition in e-commerce
industries &are not saturated like developed economies.
Acquisitions: by acquiring e-commerce companies it can decrease the competition

level& also can use the specialized capacity of the other company.
Opening physical stores outside U.S: by doing this Amazon can help the customers
to engage with the brand, resulting in increase in repeat purchases & increase in loyal
customer base.
Page | 16
THREATS:
Low entry barriers of the industry: low entry barriers affect the current player’s
business as more & more company means tough competition, price wars, shrinking
margins & losses resulting into questioning the sustainability of the players.
Government regulations: not having clarity on the issues related to FDI in multi
brand retail, has been a big hurdle in the success of the e-commerce players in many
developing nations.
Local competition: India has Snapdeal and Flipkart who are local e commerce
retailers and are taking away majority of the market. Similarly, there are many local
players who take bites from the market share thereby making it hard for a big player
like Amazon to make profits.
Page | 17
OBJECTIVE AND LIMITATIONS
Page | 18
OBJECTIVE OF THE STUDY
The objectives of the study are as follow :
❖ To study e-commerce in India.
❖ To study how customers evaluate various e-commerce sites for their purchase.
❖ To study and understand customers preferences when it comes to traditional

options and ecommerce sites.
❖ To study tactics and methods used by Amazon to grab customers.
❖ To study expectations of customers from Amazon.
❖ To study the factors influencing customers buying decisions.
Page | 19
LIMITATIONS
It is not possible for any market study to make it accurate due to many hurdles in the
collection and computation of data. Some limitations of the study are listed below
❖ The main limitation during the study was time. Due to limited time I was not
able to collect data from large number of respondent, hence the result is drawn
from a sample of limited number of customer which may consist some error.
❖ Analysis was done based upon personal opinion of respondents individually,

and not from any focuses groups or experts.
❖ The respondents are not equally distributed across India and hence may
consist few errors.
❖ Few respondents were not willing to respond which was one of the limitations.
❖ Considering secondary data, the companies have many data which are
confidential. Hence, the research can be drawn only through available
secondary data when needed.
Page | 20
II. RESEARCH METHODOLOGY (DESIGN OF THE STUDY)
Page | 21
RESEARCH DESIGN
Descriptive method:
This research is completely based on the description of the factors that lead to the
customer decision making process. It is basically valued on the various parameters
which include personal details of customers, their income –level, satisfaction level
Here the need is to find which factor describes the consumer decision making process
most effectively.
Sample Size: The data is collected from 50 respondents through social media
platforms.
Page | 22
SOURCES OF DATA
The sources of data include both Primary and Secondary data.
❖ During the course of study the information was gathered mainly through the
primary sources .Secondary data has been used to support primary data
wherever needed.
❖ Primary data is collected with specific objective, especially to address the

research problem. The data is gathered by distributing a questionnaire to the
respondents through various social media platforms.
Page | 23
DATA COLLECTION TOOL
Questionnaire Method:
❖ Questionnaire method is used for the purpose of survey with set of

questions and choice of answers.
❖ The list of question were shared with help respondents to get their
response in order to obtain standardised result which is further tabulated
and treated statistically to reach at particular solution
Page | 24
TECHNIQUES OF ANALYSIS
The data collected from the customer are transcript to the worksheet in the form of
tally bars and analyzed by statistical tools by drawing tables and graphs, inferences
were drawn on a marketing concept and conversation.
Page | 25
III. PRESENTATION AND ANALYSIS OF DATA
Page | 26
THE CUSTOMER RESPONSE TOWARDS QUESTIONNAIRE
ANAYLISIS OF CUSTOMER RESPONSES DATA
1. GENDER
GENDER RESPONDENTS PERCENTAGE

MALE 19 38%
FEMALE 31 62%
TOTAL 50 100%
GRAPH FOR GENDER
50
45
40
35
30
25
20
15
10
5
0
MALE FEMALE TOTAL
RESPONDENTS 19 31 50
PERCENTAGE 38% 62% 100%
Interpretation: Here, 38% respondents are Male and 62% respondents are
female.
Page | 27
2. AGE
AGE RESPONDENTS PERCENTAGE

UNDER 25 15 30%
25-35 16 32%
35-45 12 24%
45 & ABOVE 7 14%
TOTAL 50 100%
GRAPH FOR AGE

50
45
40
35
30
25
20
15
10
5
0
UNDER 25 25-35 35-45 45 & TOTAL
ABOVE
RESPONDENTS 15 16 12 7 50
PERCENTAGE 30% 32% 24% 14% 100%
Interpretation: Here 30% respondents are under the age of 25, 32% are between
the age of 25 to 35, 24% are between the age of 35 to 45, 14% belong to the
category of 45 and above.
Page | 28
3. OCCUPATION
OCCUPATION RESPONDENTS PERCENTAGE

SELF-EMPLOYED 13 26%
PROFESSIONAL 2 4%
SERVICE 21 42%
STUDENT 10 20%
HOUSE WIFE 4 8%
TOTAL 50 100%
GRAPH FOR OCCUPATION

50
45
40
35
30
25
20
15
10
5
0
SELF- PROFESS SERVICE STUDEN HOUSE TOTAL
EMPLOY IONAL T WIFE
ED
RESPONDENTS 13 2 21 10 4 50
PERCENTAGE 26% 4% 42% 20% 8% 100%
Interpretation: Here, 26% respondents are self-employed, 4% are professional,

42% are working as employee, 20% are students and 8% are housewife.
Page | 29
4. MARITAL STATUS
PARTICULAR RESPONDENTS PERCENTAGE

SINGLE 23 46%
MARRIED 27 54%
TOTAL 50 100%
GRAPH FOR MARITAL STATUS
50
45
40
35
30
25
20
15
10
5
0
SINGLE MARRIED TOTAL
Interpretation: Here, 46% respondents are Single and 54% respondents are
married.
Page | 30
5. INCOME LEVEL

BELOW 1 LAKH 2 4%
1-3 LAKH 16 22%
3-6 LAKH 19 38%
6-9 LAKH 13 36%
TOTAL 50 100%
GRAPH FOR INCOME LEVEL

50
45
40
35
30
25
20
15
10
5
0
BELOW 1 1-3 LAKH 3-6 LAKH 6-9 LAKH TOTAL
LAKH
PERCENTAGE 4% 22% 38% 36% 100%
Interpretation: Here 4% respondents earn below 1 lakh, 22% belong to the

category of between 1-3 lakh income, 38% between the category of 3-6 lakh, and
36% to 6-9 lakh.
Page | 31
6. WHICH METHOD OF SHOPPING DO YOU PREFER?

TRADITIONAL 17 46%
ONLINE 33 54%
TOTAL 50 100%
METHOD OF SHOPPING
50
45
40
35
30
25
20
15
10
5
0
TRADITIONAL ONLINE TOTAL
Interpretation: Here, 34% prefer traditional method of shopping the most, and
66% prefer online shopping.
Page | 32
7. DID YOU MADE A PURCHASE ONLINE ATLEAST ONE’S?

YES 47 94%
NO 3 6%
TOTAL 50 100%
Do you shop online?
50
45
40
35
30
25
20
15
10
5
0
YES NO TOTAL
RESPONDENTS 47 3 50
Interpretation: Here, 94% did shopping from online sites at least once, and 6%
never made a purchase online.
Page | 33
8. WHY DO YOU PREFER ONLINE SHOPPING?

OFFERS 12 24%
COVENIENCE 23 46%
VARIETY 6 12%
REVIEWS 9 18%
TOTAL 50 100%
Why do you prefer online shopping?

50
45
40
35
30
25
20
15
10
5
0
OFFERS COVENIE VARIETY REVIEWS TOTAL
NCE
PERCENTAGE 24% 46% 12% 18% 100%
Interpretation: Here 24% respondents prefer online shopping because of offers,

46% because of the convenience, 12% because of variety of products and 18%
because they can read customers reviews.
Page | 34
9. DID YOU EVER MADE A PURCHASE FROM AMAZON ?

YES 41 82%
NO 9 18%
TOTAL 50 100%
Did you ever made a purchase from

Amazon?
50
45
40
35
30
25
20
15
10
5
0
YES NO TOTAL
RESPONDENTS 41 9 50
Interpretation: Here, 82% respondents made purchase from Amazon at least

once, but 18% never purchased from Amazon before.
Page | 35
10. WHICH IS YOUR PREFERRED ONLINE SITES OTHER THAN
AMAZON?

FLIPKART 28 58%
SNAPDEAL 13 26%
MYNTRA 5 10%
JABONG 3 6%
OTHER 1 2%
TOTAL 50 100%
Preferred sites other than Amazon
50
45
40
35
30
25
20
15
10
5
0
FLIPKAR SNAPDE MYNTR JABONG OTHER TOTAL
T AL A
PERCENTAGE 56% 26% 10% 6% 2% 100%
Interpretation: Here, 56% prefer Flipkart other than Amazon, 26% prefer
Snapdeal, 10% prefer Myntra, 6% prefer Jabong and 2% respondents prefer
other websites.
Page | 36
11. HOW OFTEN YOU PURCHASE FROM AMAZON?

VERY RARE 9 18%
ONCE IN TWO 19 38%
MONTH
ONCE IN A 12 24%
MONTH
VERY 10 20%
FREQUENTLY
TOTAL 50 100%
Frequency of purchase
50
45
40
35
30
25
20
15
10
5
0
VERY ONCE IN ONCE IN A VERY TOTAL
RARE TWO MONTH FREQUEN
MONTH TLY
PERCENTAGE 18% 38% 24% 20% 100%
Interpretation: Here, 18% rarely buy from Amazon, 38% buy once in two
month, 24% buy products from Amazon once in a month and 20% buy
frequently from Amazon.
Page | 37
12. WHAT PRODUCTS YOU PREFER THE MOST FROM AMAZON?

CLOTHES 12 24%
ELECTRONICS 23 46%
HOME-ITEMS 7 14%
ACCESSORIES 5 10%
OTHER 3 6%
TOTAL 50 100%
Preferred products from Amazon

50
45
40
35
30
25
20
15
10
5
0
CLOTHE ELECTRO HOME- ACCESS OTHER TOTAL
S NICS ITEMS ORIES
PERCENTAGE 24% 46% 14% 10% 6% 100%
Interpretation: Here, 24% respondents prefer to buy clothes from Amazon, 46%
prefer buying electronics, 14% prefer home items, 10% prefer various
accessories, and 6% prefer few other products.
Page | 38
13. WHICH SOURCE MADE YOU BUY/ GAVE DETAILS ABOUT
AMAZON?

TELEVISION 24 48%
FM RADIO 3 6%
NEWSPAPER 13 26%
FRIENDS/FAMILY 10 20%
OTHER 0 0%
TOTAL 50 100%
Source which gave details to

respondent about Amazon
50
45
40
35
30
25
20
15
10
5
0
TELEVISI FM NEWSP FRIENDS OTHER TOTAL
ON RADIO APER /FAMILY
PERCENTAGE 48% 6% 26% 20% 0% 100%
Interpretation: Here 48% came to know about Amazon or made a purchase

because of television promotions, 6% because of F.M radio, 26% due to
newspaper, 10% due to recommendations from friends and family.
Page | 39
14.YOU PREFER AMAZON FOR IT’S?

QUALITY 10 20%
PRICE 19 38%
DELIVERY 7 14%
VARIETY 11 22%
AFTER SALES 3 6%
EXPERIENCE
TOTAL 50 100%
Respondent prefer Amazon beacause of

it's
50
45
40
35
30
25
20
15
10
5
0
QUALITY PRICE DELIVER VARIETY AFTER TOTAL
Y SALES
EXPERIE
NCE
PERCENTAGE 20% 38% 14% 22% 6% 100%
Interpretation: Here, 20% prefer Amazon because of its quality products, 38%
because of Price, 14% because of delivery, 22% because of variety available on
Amazon and 6% due its after sales service like return policy etc.
Page | 40
15. WHICH PAYMENT METHOD YOU USE MORE OFTEN?

DEBIT CARD 20 40%
CREDIT CARD 6 12%
CASH ON 22 44%
DELIVERY
OTHER 2 4%
TOTAL 50 100%
Payment method
50
45
40
35
30
25
20
15
10
5
0
DEBIT CREDIT CASH ON OTHER TOTAL
CARD CARD DELIVERY
PERCENTAGE 40% 12% 44% 4% 100%
Interpretation: Here, 40% respondents use debit card to pain make payment,
12% use credit cards, 44% prefer cash on delivery and 4% use other methods.
Page | 41
16. FOR WHICH OCCASION YOU PREFER AMAZON THE MOST?

FESTIVAL 12 24%
GIFT OPTION 9 18%
WEDDING 7 14%
REGULAR 19 38%
OTHER 3 6%
TOTAL 50 100%
Occasion
50
45
40
35
30
25
20
15
10
5
0
FESTIVA GIFT WEDDIN REGULA OTHER TOTAL
L OPTION G R
PERCENTAGE 24% 18% 14% 38% 6% 100%
Interpretation: Here, 24% respondent prefer Amazon for festival related

purchase, 18% for gifting option, 14% for wedding related shopping, 38% for
regular day to day shopping and 6% for other occasions.
Page | 42
17. DO YOU PREFER AMAZON OVER OTHER SITES DURING FESTIVE
OFFERS?

YES 42 84%
NO 8 16%
TOTAL 50 100%
Preference during festive offers
50
45
40
35
30
25
20
15
10
5
0
YES NO TOTAL
RESPONDENTS 42 8 50
Interpretation: Here 84% respondents prefer Amazon over other websites

during festive offers and 16% don’t prefer Amazon.
Page | 43
18. HOW WAS YOUR EXPERINCE WITH AMAZON DURING FESTIVE
OFFERS?

EXTREMELY 5 10%
SATISFIED
SATISFIED 28 56%
NEITHER 13 26%
SATISFIED NOR
DISSATISFIED
DISSATIFIES 3 6%
EXTREMELY 1 2%
DISSATISFIED
TOTAL 50 100%
Experience during festive offers

50
45
40
35
30
25
20
15
10
5
0
EXTREM SATISFIE NEITHE DISSATI EXTREM TOTAL
ELY D R FIES ELY
SATISFIE SATISFIE DISSATI
D D NOR SFIED
DISSATI
SFIED
PERCENTAGE 10% 56% 26% 6% 2% 100%
Interpretation: Here, 10% respondent’s experience was extremely satisfied

during festive offers on Amazon, 56% were satisfied, 26% were neither satisfied
nor dissatisfied, 6% were dissatisfied and 2% were extremely dissatisfied.
Page | 44
19.DID YOU FOUND PROBLEM WITH ANY OF THE FOLLOWING WHEN
DEALING WITH AMAZON?

PRODUCT 4 8%
DAMAGE
CHEAP 11 18%
QUALITY
DELAY IN 9 22%
DELIVERY
WRONG 0 0%
PRODUCT
NONE 26 52%
TOTAL 50 100%
Issues faced with Amazon

50
45
40
35
30
25
20
15
10
5
0
PRODUC QUALITY DELAY WRONG NONE TOTAL
T IN PRODUC
DAMAG DELIVER T
E Y
PERCENTAGE 8% 18% 22% 0% 52% 100%
Interpretation: Here, 52% never faced any issues dealing with Amazon, 8%
faced issue regarding product damage, 18% regarding quality of product, 22%
in delivery delay.
Page | 45
20. DID YOU EVER RETURNED/EXCHANGED A PRODUCT PURCHASED
FROM AMAZON?

YES 19 38%
NO 31 62%
TOTAL 50 100%
Product return
50
45
40
35
30
25
20
15
10
5
0
YES NO TOTAL
Interpretation: Here, 38% respondents returned/exchanged the product

purchased from Amazon, were as 62% never found the need to return/exchange
it.
Page | 46
21. IF YES, WHAT WAS THE REASON BEHIND YOUR
RETURN/EXCHANGE?

SIZE 12 63%
DAMAGE 6 32%
WRONG 1 5%
PRODUCT
OTHER 0 0%
TOTAL 19 100%
Reason for return

20
18
16
14
12
10
8
6
4
2
0
SIZE DAMAGE WRONG OTHER TOTAL
PRODUC
T
PERCENTAGE 63% 32% 5% 0% 100%
Interpretation: 63% respondent returned/exchanged their product due to size

issues, 32% because of damaged product, 5% due to wrong product.
Page | 47
22. HOW WAS YOUR EXPERIENCE WITH AMAZON’S CUSTOMER CARE
(if any)?

EXCELENT 1 4%
GOOD 13 50%
AVERAGE 9 35%
BAD 2 8%
WORST 1 4%
TOTAL 26 100%
Customer care experience

30
25
20
15
10
5
0
EXCELE GOOD AVERA BAD WORST TOTAL
NT GE
PERCENTAGE 4% 50% 35% 8% 4% 100%
Interpretation: Here, total of 26 respondent experienced customer care of

Amazon among which 4% respondent found customer care of Amazon excellent,
50% found it excellent, 35% found it average, 8% as bad and 4% as worst.
Page | 48
23. ARE YOU A AMAZON PRIME MEMBER?

YES 18 36%
NO 32 64%
TOTAL 50 100%
Amazon prime membership
50
45
40
35
30
25
20
15
10
5
0
YES NO TOTAL
Interpretation: Here 36% respondents are Amazon prime member and 64% are
not prime membersa yet.
Page | 49
24. WILL YOU RECOMMEND AMAZON TO YOUR FRIENDS AND
FAMILY?

YES 47 94%
NO 3 6%
TOTAL 50 100%
Recommend Amazon to others
50
45
40
35
30
25
20
15
10
5
0
YES NO TOTAL
RESPONDENTS 47 3 50
Interpretation: Here 94% will recommend Amazon to their friends and family
and 6% will not.
Page | 50
IV. FINDINGS AND RECOMMENDATIONS
Page | 51
MAIN FINDINGS
❖ The data analysed above shows 46% prefer Traditional method for shopping
over online shopping.
❖ Majority of respondent around 46% prefer online shopping because of

convenience, 24% because of it’s offers, 18% because they can read reviews
and further take decision and 12% due to variety of products available online.
❖ Around 94% respondents made purchase through online sites at least once.
❖ Amongst which 82% made purchase from Amazon.
❖ When it comes to websites other than Amazon 58% prefer Flipkart, 26%
prefer Snapdeal, 10% Myntra, and 6% Jabong.
❖ Coming to the frequency of purchase 38% purchase from Amazon once in two
months, 24% once in a month, 20% very frequently, and 18% rarely make a
purchase.
❖ 46% respondents prefer to buy electronics from Amazon, 24% prefer clothes,
and around 16% prefer home accessories.
❖ Respondents prefer Amazon due to various factors, which consist 38% due to
its price, 22% because of variety, and 20% because of good quality.
❖ 84% respondents prefer Amazon over other websites during festive offers.
❖ 52% respondent never faced any issues regarding products, 22% did faced
issue due to delay in delivery, 18% due to Quality, and 8% due to product
damage.
❖ When we look at Amazon’s Customer care 38% find it good, 36% find it
average, 16% find it bad, 6% find it excellent and 4% as worst.
❖ Around 94% respondents when asked will definitely recommend Amazon to

their friends and family.
Page | 52
CONCLUSION
❖ The study showed the current insights about ecommerce in India.
❖ It gave various marketing and advertising efforts taken by Amazon which do

influence the customers.
❖ The study also listed the reasons why customers prefer Amazon.
❖ Hence, we can finally conclude websites like Amazon is preferred by lots of

people and make people’s life easier.
❖ And we can also conclude sites like Amazon are the future.
Page | 53
RECOMMENDATIONS
❖ There are few areas which need improvement when we consider Amazon and
other sites.
❖ Firstly to tackle hesitation of few people to make purchase from online sites.
❖ The company should focus in removing these barriers and make the process
easy and educate such customers.
❖ Next the most important change which the company needs to focus on is to
move product images to videos, as the world is moving towards video and it
can also showcase products in better way.
❖ The company should focus on issues were customers gets cheated at time, and
need to find solutions to it.
❖ The company should also shift their focus from discounts to better quality as
the customers may not mind to pay little extra for good quality products.
Page | 54
APPENDIX
PERSONAL DETAILS
NAME :
PHONE No.
EMAIL ID :
1. GENDER
o Male
o Female
2. AGE
o Under 25
o 25-35
o 35-45
o 45 and above
3.OCCUPATION
o Self – employed
o Professional
o Service
o Student
o Housewife
4. MARITAL STATUS
o Single
o Married
5. INCOME LEVEL
o Below 1 lakh
o 1-3 lakh
o 3-6 lakh
o Above 6 lakh
6. WHICH METHOD OF SHOPPING DO YOU PREFER?

o Traditional
o Online
Page | 55
7. DID YOU MADE A PURCHASE ONLINE ATLEAST ONE’S?
o Yes
o No
8. WHY DO YOU PREFER ONLINE SHOPPING?
o Offers
o Covenience
o Variety Review
9. . DID YOU EVER MADE A PURCHASE FROM AMAZON ?

o Yes
o No
10. WHICH IS YOUR PREFERRED ONLINE SITES OTHER THAN AMAZON?
o Flipkart
o Snapdeal
o Myntra
o Jabong
o Other
11. HOW OFTEN YOU PURCHASE FROM AMAZON?
o Very rare
o Once in two months
o Once in a month
o Very frequently
12. WHAT PRODUCTS YOU PREFER THE MOST FROM AMAZON?
o Clothes
o Electronics
o Home appliances
o Accessories
Page | 56
o Other
13. WHICH SOURCE MADE YOU BUY/ GAVE DETAILS ABOUT AMAZON?
o Television
o Fm radio
o Newspaper
o Friends/Family
o Other
14. YOU PREFER AMAZON FOR IT’S?

o Quality
o Price
o Delivery
o Variety
o After sales service
15. . WHICH PAYMENT METHOD YOU USE MORE OFTEN?
o Debit card
o Credit card
o Cash on delivery
o Other
16. FOR WHICH OCCASION YOU PREFER AMAZON THE MOST?
o Festive
o Gift option
o Wedding regular
o Regular
o Other
Page | 57
17. DO YOU PREFER AMAZON OVER OTHER SITES DURING FESTIVE
OFFERS?
o Yes
o No
18. HOW WAS YOUR EXPERINCE WITH AMAZON DURING FESTIVE

OFFERS?
o Extremely satisfied
o Satisfied
o Neither satisfied nor dissatisfied
o Dissatisfied
o Extremely dissatisfied
19. DID YOU FOUND PROBLEM WITH ANY OF THE FOLLOWING WHEN
DEALING WITH AMAZON?
o Product damage
o Cheap quality
o Delay in delivery
o Wrong product
o None
20. DID YOU EVER RETURNED A PRODUCT PURCHASED FROM AMAZON?

o Yes
o No
21. IF YES, WHAT WAS THE REASON BEHIND YOUR RETURN?
o Size
o Damage
o Wrong product
o Other
Page | 58
22. HOW WAS YOUR EXPERIENCE WITH AMAZON’S CUSTOMER CARE?
(IF ANY)
o Excellent
o Good
o Average
o Bad
o Worst
23. ARE YOU A AMAZON PRIME MEMBER?
o Yes
o No
24. WILL YOU RECOMMEND AMAZON TO YOUR FRIENDS AND FAMILY?

o Yes
o No
Page | 59
BIBLIOGRAPHY
❖ In this Project report, while finalizing and analyzing quality problem in

details the following websites have been referred. All the material detailed
below provides effective help and a guiding layout while designing this
text report.
❖ Amazon’s official website is referred to collect data about the products

available.
❖ Other than that following websites are referred to collect and analyse
secondary data.
WEBSITES
❖ https://www.aboutamazon.in/
❖ https://www.marketing91.com/marketing-strategy-of-amazon/
❖ https://qz.com/india/1554472/amazon-india-spent-twice-what-walmart-
flipkart-did-on-ads-in-2018/
❖ http://www.adageindia.in/marketing/cmo-strategy/why-amazon-india-
shifted-its-narrative-to-sabamazonwaale-from-
apnidukaan/articleshow/62010452.cms
Page | 60

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A

TO STUDY CUSTOMER PREFERENCES

MASTER OF MANAGEMENT STUDIES (MMS)

UNDER THE GUIDANCE OF

This is to certify that _______________________________ has

successfully completed the project work as a part of academic fulfillment of Masters

of Management Studies (M.M.S.) semester IV examination.

Name & Signature of Project Guide

I, Bhagyashree Jadeja of Master of Management Studies IVth Semester of Sinhgad

Institute of Business Management (SIBM), hereby declare that I have successfully

completed this Project on To understand the Customer Preferences in choosing

Amazon in the academic year 2017-2019.

I, Bhagyashree Jadeja, student of Sinhgad Institute of Business Management, Mumbai

I hereby take this opportunity to express my sincere gratitude to Prof. Shyamkant

B MAIN BODY OF THE REPORT 06 – 20

II Design of the study

III Presentation and Analysis of data 26 – 50

IV Findings and Recommendation

Propelled by rising smart phone penetration, the launch of 4G networks and

❖ Large percentage of population subscribed to broadband

❖ Explosive growth of smart phone users, soon to be world's second largest

❖ Rising standards of living as result of fast decline in poverty rate.

❖ Availability of much wider product range compared to what is available at

❖ Competitive prices compared to brick and mortar retail driven by disinter

Amazon.com, Inc. is an e-commerce and cloud computing company headquartered in

Segmentation, targeting, positioning in the Marketing strategy of Amazon

E-commerce giants like Amazon uses demographic & psychographic segmentation to

In order to differentiate itself, company acquired many IT & e-commerce start-ups

Customer analysis in the Marketing strategy of Amazon

Orchard advertising India is Amazon India’s advertising agency. Orchard advertising

The positioning of new ad campaign intends to showcase Amazon as a dominant brand by

AMOUNT SPENT ON ADVERTISEMENT

Acquisitions: acquiring companies like zappos.com, junglee.com, imbd.com,

Backward integration: Amazon can come up with its in-house brands in

Acquisitions: by acquiring e-commerce companies it can decrease the competition

❖ To study e-commerce in India.

❖ To study and understand customers preferences when it comes to traditional

❖ To study tactics and methods used by Amazon to grab customers.

❖ To study expectations of customers from Amazon.

❖ To study the factors influencing customers buying decisions.

❖ Analysis was done based upon personal opinion of respondents individually,

The sources of data include both Primary and Secondary data.

❖ Primary data is collected with specific objective, especially to address the

❖ Questionnaire method is used for the purpose of survey with set of

ANAYLISIS OF CUSTOMER RESPONSES DATA

GENDER RESPONDENTS PERCENTAGE

GRAPH FOR GENDER

AGE RESPONDENTS PERCENTAGE

GRAPH FOR AGE

OCCUPATION RESPONDENTS PERCENTAGE

GRAPH FOR OCCUPATION

Interpretation: Here, 26% respondents are self-employed, 4% are professional,

PARTICULAR RESPONDENTS PERCENTAGE

GRAPH FOR MARITAL STATUS

PARTICULAR RESPONDENTS PERCENTAGE

GRAPH FOR INCOME LEVEL

Interpretation: Here 4% respondents earn below 1 lakh, 22% belong to the

PARTICULAR RESPONDENTS PERCENTAGE

PARTICULAR RESPONDENTS PERCENTAGE

Do you shop online?

PARTICULAR RESPONDENTS PERCENTAGE

Why do you prefer online shopping?

Interpretation: Here 24% respondents prefer online shopping because of offers,