Attributes valued by e-commerce

customers for shampoo buying

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(NYKAA)

Research Objective:

1) To get a panaromic view of the

consumers using shampoos of different
price range
2) To understand the attributes of E-
commerce sites that are valued by
consumers while buying shampoo
Purpose and Motivation

Market drivers
• Wide product availability
• Increasing focus on product
customization
Restraining factors
• Counterfeit products
• Availability of substitutes – Surgical
treatment, DIY kits, home remedies

Why E-commerce?
• E-commerce websites offer various benefits – bulk
purchase discounts, annual membership, gift vouchers
• D2C expected to grow with increasing internet
penetration
• COVID-19- online shopping trend likely to continue
 METHODOLOGY & DESIGN

Growth
Opportunities

AGE GROUP MARITAL STATUS PROFESSION

 GENDER RESIDENCE
INCOME LEVEL

HISTORY OF FREQUENCY TYPE OF PRODUCT

ONLINE PURCHASE
 FISHBIEN
K clustering All12 profiling
Minimum variables MODEL
Cluster Analysis Ration Criteria significant at
 4 Clusters 95% CL. ORD NYKA AMAZO FLIPKA MYNTR
Cluster ER VARIABLE A N RT A
3 (Millenials) The site has
1 (GEN Z) (79) 2 (18) (42) 4 (17) many
Age Youngest (21-25) 36-40 21-28 Above 50
7 categories 4 1 3 2
Marital Single Married Single & married Married Ease of
(30%) finding your
Gender More than 60% F 95% F 90% F F 2 shampoo 2 1 3 4
Profession Students (87%) Majority working Self Brand
homemakers professionals, self employed known and
employed trusted for
Residence Mostly in tier 2 city Either tier 2 or 3 Majority tier 1 Tier 2/3 1 shampoo 1 2 3 4
(70%) city
Income Less than 5 LPA 5-10 LPA 11-15 lpa 5-10 LPA Lower prices
4 of shampoo 1 2 3 4
Mode Online Offline Online Offline
Frequency atleast 2wice a atleast 2wice a 3-4 times per atleast 2wice 8Fast delivery 1 3 4 2
month month month a month
5Promotions 1 2 3 4
Type Use generic Use generic Mostly prefer Use generic 3Availability 1 2 3 4
shampoo shampoo natural shampoo Loyalty
Wtp 250-300 per 250-300 per Above 351 250-300 per
6 programs 1 2 3 4
purchase purchase purchase
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 2) H0= Cluster 1 and 3 have similar attitude
Analysis and Interpretation towards shopping through online platform Nykaa

All lpooled Eigenv. =1.8,

within group 79% of variance is Wilk’s Lambda sig
1) H0= Income level of customers does not have correlation < at 99%,= .3
explained by this
any effect on their attitude towards Nykaa Brand 20% model
for lower prices
QUESTION: i.e Is attitude towards lower prices=
f(Income level) Means
between the
• F-test: 98% Confidence Sig. clusters
Has wide range of products (Nykaa) 0.530
• Welch: 99% confidence
Product are easy to find on their 0.076
website (N)
Is a trusted & well know platform (N) 0.048
Mean
c3> c1
Means order
Has lower prices vs. other 0.000
less than 5 73.7368 2.0000 brands/platforms (N) c1> c3
6-10 lpa 65.8750 5.0000 Delivery is fast (N) 0.000 c3> c1
Offers good promotions (N) 0.001 c1> c3
11-15 lpa 59.0909 6.0000
Always has the products I want in 0.354
16-20 lpa 86.2000 1.0000 stock (N)
above 20 65.0000 4.0000 Have a loyalty program or provide 0.001
6
store credits (N) c1> c3
CONCLUSION:
✓ As per ANOVA, Income Level does affect consumer’s attitude
towards prices being lowered in Nykaa. Consumers with income
between 16-20 LPA had the highest positive attitude while those
with income between 6-15 LPA did not have positive attitude as
strong as those with < 5LPA. Variables accountable: Location,
research by customers, etc.
✓ Cluster 1 and cluster 3 (gen z and millenials) have statistically
different attitudes towards the brand NYKAA. The most important
variable that differentiates the two is: Prices
✓ C1: PRICE SENSITIVE
✓ C3: SERVICES SENSITIVE

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Thanks!