Project Report Sugam
Project Report Sugam
PROJECT REPORT
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A report submitted
to
Amity University,
Submitted by
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GUIDE CERTIFICATE
By,
Nuthan K N
Manager, Capgemini
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INDEX
1. INTRODUCTION...............................................................6
1.1 INTERNET USAGE IN INDIA
1.2 RETAILING
1.3 INTRODUCTION TO ONLINE SHOPPING
1.4 INTRODUCTION TO E-COMMERCE
1.5 INDUSTRY PROFILE
1.6 COMPANY PROFILE
1.7 OBJECTIVE AND SCOPE OF THE STUDY
1.8 LIMITATIONS OF THE STUDY
2. REVIEW OF LITERATURE.........................................67
3. RESEARCH METHODOLOGY.....................................70
3.1 RESEARCH DESIGN
3.2 PRIMARY DATA
3.3 SECONDARY DATA
3.4 DATA COLLECTION
3.4 1SAMPLE DESIGN
4. DATA ANALYSIS AND INTERPRETATION...................75
4.1 DATA ANALYSIS AND INTERPRETATION
4.2 FINDING
5. CONCLUSIONS.............................................................101
6. BIBLIOGRAPHY AND WEBSITES............................105
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1. INTRODUCTION
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INTRODUCTION
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When a consumer recognises the name, logo, slogan, or design of a
company that promotes an idea or image, they are forming an
association with the company that owns the idea or image. Although
many other companies may be offering similar services and products,
the concept or image of a company's brand will be recognised and
connected with the service or product for years to come, even if there
are many other companies out there. When advertising experts work on
brand awareness, they are also working on excellent reputations and
establishing a set of standards that the firm should try to maintain or
exceed in the future. Branding is a critical component of Internet
commerce because it helps businesses to establish and maintain their
reputations while also expanding beyond the initial product and service
and contributing to the income produced by the original brand.
Originally used to distinguish one person's cattle from another's by the
application of a distinctive sign burnt into the animal's skin with a hot
iron stamp, branding has now spread to other fields such as commerce,
marketing, and advertising.
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the recall and recognition of a company's brand by its target audience
that is measured. When asked about a brand or shown an image of the
brand logo, brand recall is the ability of the consumer to recall the
brand in relation to the product, whereas brand recognition is the
potential of the consumer to recall previous knowledge of the brand
when asked about the brand or shown an image of the brand logo.
Brand awareness is a critical component of brand development because
it allows the brand to differentiate itself from the competition in this
monopolistically competitive environment.
Digital marketing is the promotion of products and services via the use
of digital distribution methods that are timely, relevant, personal, and
cost-effective in their delivery to customers. In general, digital
channels can be divided into several different categories, including the
internet, mobile devices, digital outdoor advertising, and any other kind
of interactive digital media. Each category contains a number of digital
tools/sub-channels that may be used to help digital marketing efforts.
These are some examples:
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• Digital outdoor advertising - still images, video digital display,
and interactive kiosks; and
According to the Internet in India study, India's internet user base has
surpassed 100 million, which represents less than 10% of the country's
total population. Until 2007-08, India's internet user base grew at a
glacial pace, but growth has accelerated dramatically since then.
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Graph 1.1: Internet usage in yearly basis
With about 150 million Internet users, India has surpassed China (with
575 million) and the United States to become the third biggest Internet
population in the world (at 275m). In India, with a total population of
150 million Internet users, Internet penetration remains at 12 percent,
compared to 43 percent in China and 80 percent in the United States.
However, because of the low penetration, India offers an unrivalled
development opportunity for the Internet business in the next years.
From 2013 to 2018, we believe that India will experience a golden
period in the Internet sector, with incredible growth opportunities and
secular growth adoption for E-Commerce, Internet advertising, social
media, search engine optimization (SEO), online content, and services
related to E-Commerce and Internet advertising.
Here is the Internet forecast for India in 2013, the first year of the
golden age.
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overall number of Internet users in the country to 180 million. This
indicates a 20 percent increase in the number of people who use the
Internet.
• The amount of time spent online will increase, and it will eventually
become equivalent to that spent in the United States and China.
According to study estimates, an average Internet user in India spends
13 hours per week on the internet, and this number is expected to rise
to 16 hours per week in the near future. The additional time spent
online will be mostly devoted to social media, photo/video sharing,
E-Commerce, and utility/bank/bill paying activities, among other
things.
• The number of mobile Internet users will surpass 100 million. India
has approximately 950 million mobile users, with close to 50 million,
or less than 6%, of these mobile customers accessing the Internet
using mobile devices, according to the latest figures. According to
estimates, mobile Internet penetration would increase from about 6
percent to 10 percent in 2013, and India's mobile Internet population
might more than double in 2013, reaching 100 million projected
mobile Internet users by the end of the year 2013.
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as a result of the general increase in Internet use among the general
public.
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value has grown by less than $5 billion, compared to the $600 billion
generated by the US Internet industry and the $250 billion generated by
the Chinese Internet sector. A large number of Internet firms must grow
in size in order for the funding climate to become more relaxed.
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1.2 RETAILING
Sales of products and some services to the general public are referred
to as retailing. Retailing has been around for several thousand years.
Retail sales are those activities that are concerned with the sale of
products to final customers for personal or home use. Retail businesses
face intense competition, and the failure rate of retail enterprises is
higher than that of other businesses. However, other criteria such as the
accessibility of the site, the selection and display of products, the
beauty of the institution, and the reputation of the establishment all
have a role in the level of competition. There is a growing diversity and
adaptability in the retail industry, as evidenced by the wide range of
retail formats available today, such as vending machines, door-to-door
and telephone sales, direct mail marketing, the Internet, discount stores,
specialty stores, department stores, supermarkets, and customer
cooperatives.
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In spite of the fierce competition in retail, the death rate of retail firms
is higher than the average for all types of businesses. Non-price
elements of competition such as location, product selection and
presentation, retail establishment attractiveness and intangible
variables such as the retailer's reputation in the community contribute
to control this. Prices are the major source of competition. Competition
for customers is blurring traditional product categories in commerce,
and many organisations now provide considerably more items than
their core categorization would imply (e.g., drugstores may carry food,
clothing, office supplies, hardware, etc.).
Terms Defined:
Vending Machine- A vending machine is a coin-operated machine that
sells small items such as candy, beverages, and other items.
Direct-mail marketing- Direct-mail marketing entails reaching out to
prospective customers through print advertisements in the form of
pamphlets or e-mails.
Discount houses- Discount stores are retail establishments that sell
items at lower prices than normal stores, which sell merchandise at list
prices or suggested retail prices.
Specialty stores- Retail establishments that specialise in a certain range
of merchandise and associated items are referred to as specialty stores.
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On-line shopping allows you to browse through an infinite number of
options and even purchase stuff that is not available in shops. If
someone is seeking for a specialised product that may not be available
in their local area, they will almost certainly discover what they are
looking for online. However, the opportunity to compare goods,
whether they are comparable or not, online is much more beneficial.
He has the ability to browse through various merchants at the same
time, evaluating material quality, sizes, and pricing all at the same
time, which saves him time and allows him to save money.
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following section, despite the fact that there are a plethora of factors
that influence consumers to shop online.
● Convenience
The convenience factor relates to how easy it is to browse or search for
information on the internet, as opposed to traditional retail purchasing.
Consumers may quickly browse product catalogues online, but if a
customer searches for the same product or item in a traditional store
manually, it is difficult and time-consuming to visit the store physically
and on the phone. Convenience has always been a major element in
influencing customers' decisions to purchase online. According to
Robinson, Riley, Rettie, and Wilsonz (2007), the most compelling
reason for online shopping is the convenience of being able to buy at
any time of day or night and having bundles of things delivered to one's
doorstep.
● Time saving
One of the most important reasons influencing the decision to purchase
online is the time savings. Time and patience may be saved by
browsing or searching an online catalogue. Shopping online allows
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people to save time and effort while still getting what they want. One
probable explanation is that internet shopping saves time during the
buying of products and it can reduce the travel time necessary to visit
a traditional store, both of which are beneficial. Some respondents, on
the other hand, believe that the time required for delivery of products
or services while buying online is also a consideration.
● Website design/features
One of the most important variables impacting online purchasing is the
design of the website and the activity of online shoppers. When it
comes to website design, website reliability and fulfilment, website
customer service, as well as website security and privacy are the most
appealing characteristics that impact the perspective of the consumer
when it comes to online shopping. Shergill and Chen are two of the
most well-known names in the field of computer science (2005).
According to Kamariah and Salwani (2005), the higher the quality of a
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website, the greater the likelihood that a consumer will purchase on the
internet. According to Liang and Lai, the quality of web design has a
significant influence on the choice of electronic retailers made by
consumers (2000). The design of a website is one of the most essential
factors in persuading people to purchase online.
● Security
Another important element that influences customers' decision to
purchase online is security. Many internet users, however, shun online
purchasing due to concerns about credit card theft, privacy concerns,
non-delivery risk, post-purchase service, and other issues. However,
the issue of transaction security in online purchasing has garnered some
attention. Transactions involving money and credit card information
that are safe and secure build confidence while decreasing transaction
risk. The UK debuted fraud-free electronic shopping in 1995, and later
on, Europe and Singapore followed suit with safe electronic
transactions (SET). One of the reasons people avoid shopping online is
because they are frightened about their personal information being
compromised, according to Bhatnagar and Ghose (2004). Because of
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concerns about the security of their personal information, they believe
that a huge number of internet shoppers avoid shopping online.
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on a variety of popular items in order to lure buyers from around the
world to a single location. As part of their unique deals, several online
shopping India websites also include online coupons, gift certificates,
and promotional codes, which allow customers to save a significant
amount of money on their purchases. Because a wide range of goods
are organised in a very comfortable manner, online shopping in India
is simple and quick. You can easily discover the precise thing you
want because a broad variety of products are organised in a very handy
manner.
Today, more and more people prefer to purchase items from online
retailers in India, owing to the large variety of products available,
ranging from electronics to clothing, footwear, furniture, jewellery,
books, music, and presents, among other things. If you want to
purchase anything, all it takes is several clicks and the product will be
delivered to your home.
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• An online electronic catalogue that lists all of the items available for
purchase, their prices, and, in certain cases, their availability (products
in stock or number of days till delivery);
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eBay, the world's most well-known cybermall, provides access to
items from a range of independent sellers. • Internet shopping malls
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will almost always make use of the World Wide Web, while it may
also make use of other technologies such as e-mail, mobile devices,
social media, and telephones as well.
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1.4.1 Growth and progression of E-commerce in India
The major reasons driving this development are the increase in Internet
usage (which is rising at a rate of 20% per year) and 3G penetration, as
well as the increase in smartphone users as a result of the availability
of the Internet on mobile phones. It is believed that there are 27 million
mobile Internet users in India at the moment, with 4 percent of those
people making purchases on their mobile devices. In the next four
years, this percentage is anticipated to rise to 20 percent of all buyers
who use mobile devices. More and more customers are turning to
online shopping as a result of factors such as busy lives, traffic
congestion, a lack of offline shopping time, amazing bargains and
discounts given online, and the adoption of new e-commerce models
such as group purchasing and second-hand sales. Due to the increasing
middle-class wages, global exposure, and changing demographics
(almost half of the population is under the age of 25), this trend is also
evident in Tier II and Tier III cities, respectively.
On-line travel (76 percent) and financial services (10 percent) are the
two most significant components of online purchasing, with e-tailing
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coming in second (8 percent). Travel tickets, movie tickets, restaurant
discount vouchers, hotel reservations, utility payments, insurance
policies, and premium payments are among the most popular services
purchased online, but product categories such as computers and
accessories, cameras and mobile phones, electronic durables, and
books are also growing in popularity. However, product categories
such as clothes, jewellery, and footwear (which need a high level of
touch and feel) that have the most potential in terms of market size also
face problems such as a high return rate and negative cash cycles as a
result of the COD payment method (cash on delivery).
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cards, payment gateways, cash on delivery, etc.), and a
straightforward and logical checkout process. Furthermore, as
competition in this market grows, e-commerce firms will need to
spend in research and development of distinct product catalogues, new
service and customer interaction concepts, and cost-effective supply
chain and logistics models in order to remain competitive.
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sales, with electronics and general items accounting for the vast
majority of the remaining 75%. Amazon's sales outside of North
America are increasing, accounting for 44 percent of the company's
overall revenues. It is undeniable that online consumer purchases are
becoming increasingly popular in all of the world's major economies.
The latest results of Google, the world's largest online advertising
company, are a fair sign of the substantial rise in online advertising
that has occurred in 2011. The company's revenues increased by 29.3
percent in fiscal 2011, reaching $37.9 billion, while earnings increased
by 14.1 percent, reaching $9.7 billion.
By the end of 2011, the number of homes and companies in the United
States that had broadband access capabilities had surpassed 88 million,
due in part to low monthly rates charged by Internet service providers.
This figure does not include mobile broadband users, who are
projected to number an additional 105 million.
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according to Plunkett Research, are estimated to be $320 billion in
2011.
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linked to the Internet.
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Travel, clothes and accessories, books, music, movies, technology,
and specialty foods, including wines, are some of the most popular
product and service categories sold on the internet. Online shopping
accounts for a considerable proportion of total sales in many markets.
Meanwhile, several of the world's top brick-and-mortar shops now
have websites that rank among the most popular on the Internet.
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enter the retailing industry without having to make large capital
investments in actual retail stores.
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1.4.4 The state of e-commerce today
E Commerce is a unique experience in today's world. Traditional
shopping has been completely changed as a result of this phenomenon.
A large number of ecommerce enthusiasts have already discovered how
superior it is than any other method of shopping.
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There are certain disadvantages to doing business online nowadays,
but as the saying goes, "he who fears every bush should never go
birding." Many people are willing to put up with negative aspects
because they have faith in the online world and want it to be a better
place.
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brands and Indian merchants, India is the "promised country." "A
thriving economy," as the phrase goes. India ranks first on the list of
rising markets for global retailers, and the country's retail industry is
growing and modernising at a rapid pace in tandem with the country's
economic development. The future seems bright; the market is
expanding, government regulations are becoming more favourable, and
new technology are making it easier to conduct business.
In 1998, total retail sales in the United States, which include sales from
both shops and dining places, exceeded $2.7 trillion. Over 1.5 million
retail enterprises employ a total of 19.8 million people in the United
States at the present time. The majority of them are tiny. In the retail
industry, one-third of all firms have no paid employees, while around
43 percent have less than 10 employees. Three-quarters of all retail
sales are generated by larger businesses with yearly sales of over
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$500,000, according to the National Retail Federation. Retailers with
10 or more locations dominate around one-fifth of the market,
accounting for 95 percent of all department store sales, 56 percent of
all pharmacy sales, half of all shoe sales, and 57 percent of all grocery
store sales.
In the United States, the general store was the predecessor of the
single-line store and is still prevalent in small rural towns and rural
villages today. The department store, which is a large-scale general
shop or a collection of single-line stores in which each line of products
is managed as a separate department, first appeared in the late
nineteenth century. Such stores offer the ease of easy access to a wide
selection of items while also being reasonably priced. Developing
shopping centres and malls, which are large retail projects that feature a
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diverse range of businesses and services, has been made possible in
large part by the emergence of modern department stores.
Despite the fact that chain shops have existed since the early nineteenth
century, it was the Great Atlantic and Pacific Tea Company (A&P) that
established the current form in 1859 by standardising the quality and
pricing of every product offered in its stores. Chain businesses are
typically able to offer their items at rates that are far lower than those
paid by independent retailers because of central administration, bulk
purchasing, standardisation of business procedures, and minimal
individual service. When it comes to chain stores, five-and-ten-cent
stores (such as those operated by the F. W. Woolworth Company,
which operated such stores until 1998) were once common, but
discount superstores (such as Wal-Mart; see Walton, Sam) and
bakeries, tobacco
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stores, drugstores, grocery stores, and department stores are now the
most common types.
Europe and the United States have both seen the establishment of
consumer cooperative stores (also known as cooperative movement).
Following World War II, the practice of discounting products became
popular, and businesses that specialise in reduced merchandise have
emerged as the fastest expanding section of the retail industry.
Discount clubs, where consumers must pay a fee to become members
and
name-brand items are sold at a discount (sometimes in bulk or
extremely big containers), first gained popularity in the 1990s and have
since spread around the world.
The Internet is established: First and foremost, there were the early
days, when the Internet was widely perceived as a domain reserved for
technologists exclusively, one that would yield few, if any,
commercial companies. Initial designs for the Internet were created by
Vinton Cerf in 1973 as part of a project supported by the United States
Department of Defense's “Defense Advanced Research Projects
Agency” and funded by the National Science Foundation (DARPA).
In November 1977, the first demonstration of a three-network Internet
protocol-based connection was made possible through the use of the
Internet Protocol. The Internet was officially launched in 1983,
largely as a foolproof mode of defence communications as well as a
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mechanism for researchers at various institutions to interact with one
another and share information.
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companies of substantial scale raised a total of more than $100 billion
in venture capital during the time of high investment activity
(1994-2000). Approximately 450 of these firms went public by selling
their stock to the general public (initial public offerings). The stock
market surged, and billionaires were created overnight. Individuals
and families from all walks of life put their money into technology
stocks, and their wealth soared in a matter of months as a result. The
profits made by venture capital funds that cashed out early were
tremendous, and financiers had no trouble finding more investors for
new venture capital pools. In January of 2000, the NASDAQ index of
equities reached 5,000, prompting the Chairman of the Federal
Reserve to issue a warning about "exuberant optimism." Some
predicted that the boom would be short-lived, while others predicted
that it was the beginning of a "new economy" that would endure
indefinitely.
The Reality Phase: By early 2003, the gloomy clouds that had hung
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over this sector had begun to lift, and a "reality phase" had begun to
take shape. Internet-based enterprises that were well-conceived were
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demonstrating their worth. Consumers had developed a strong
preference for purchasing goods and services over the Internet.
Businesses of all sizes and types are discovering that the Internet
increases genuine operating efficiency while also increasing
profitability and increasing sales. For example, while the majority of
the airline industry has suffered greatly in recent years, value-based
discount airlines Southwest and JetBlue have enjoyed superior
financial performance, thanks in no small part to their use of
e-commerce to efficiently book reservations and sell tickets online.
Southwest and JetBlue are two such airlines. The most essential reason
in the resurgence of the e-commerce and Internet sectors has been the
improvement in "efficiency." In terms of efficiency, consumers find
the Internet to be an excellent tool for expanding their shopping and
banking activities. Travelers feel that booking hotel rooms and airline
seats over the Internet is a convenient and time-saving method. For
corporate procurement managers, the Internet is the most efficient
means of procuring the items and inventories that their companies
require. There are hundreds of millions of people in the world.
Low costs are a driving force for the steady global growth phase:
Currently, access to high-speed Internet service, both wired and
wireless, is accessible at low rates in an increasing number of locations
throughout the world. In even the most underdeveloped countries,
individuals and companies have come to rely on the Internet for their
day-to-day requirements. The “second billion” group of users has been
reached throughout the world, and the “third billion” group is definitely
in sight over the medium term, as cheaper devices continue to spread in
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the marketplace. Mobile computing is advancing at breakneck pace,
owing to the availability of low-cost mobile phone contracts that
include improved Internet connectivity.
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dolls, stamps, comics, magazines, music, pottery, glass,
photography, electronics and jewellery, and gemstones, according to
the company's estimates.
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Founded in 2004, Homeshop18 is a virtual store that sells high-quality
items and services directly to people across the country in a multimedia
environment that includes television, the web, catalogues, and print.
This store sells a variety of items, including books, movies, and music,
presents and flowers, mobile phones and accessories, cameras and
camcorders, electrical devices, computers, and peripherals, toys, and
games, among many other things.
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Mydala.com is a website that connects you with the best offers
available in your location. It promises to offer offers every day, with
discounts ranging from 40 to 95 percent off the top restaurants,
shopping, and salons in your area.
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more than 2 million registered users, and a daily sales volume of 3000
products (or more).
Books were the starting point for Flipkart because they are
inexpensive, easy to procure, have a large target market that enjoys
reading them, provide more margin, are easy to pack and deliver, do
not get damaged in transit, and most importantly, are not very
expensive. As a result, because books are inexpensive, the amount of
money a customer has to spend to try out one's service for a single
time is very small. During its initial two years of operation, Flipkart
solely sold books. Following this, the firm sold its first book on
Flipkart.com, John Woods' Leaving Microsoft to Change the World,
which was published in 2012.
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e-commerce players. It is currently ranked among the top 20 websites
in India, with a presence in 37 cities and a presence in over 20
countries. This company offers online customers with a remarkable
online shopping experience via the use of unique services such as:
• Cash on Delivery,
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books online. Flipkart is the market leader in India when it comes to
selling books both offline and online, with an online market share of
about 80 percent. There are several participants in the electrical
products market, including Naaptol, Letsbuy, Indiaplaza, Tradus,
Infibeam, Yebhi, and others. The electronic market share is spread
among them in a variety of unknowable proportions, according to the
data.
The number of internet users in India now is around 13.5 crore, but the
number of houses with Cable and Satellite (C&S) television is
approximately 10.5 crore. By 2014, it is projected that 30 crore internet
users will have joined the network, and 14 crore C&S houses will have
been built. As a result, India has experienced enormous internet
development, and with customers becoming more used to e-commerce,
the future of the e-commerce sector is unquestionably bright. This
year, around 25 lac individuals have transacted online, and the figure is
expected to rise in the next months and years.
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March 31, 2012. This is, without a doubt, a significant increase. By
2015, the firm expects to generate sales of Rs. 5000 crores.
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● According to reports, private equity companies Carlyle and
General Atlantic are in negotiations to invest a total of $150
million to $200 million in Flipkart as part of a combined
investment.
1.6.4 Acquisitions
● WEREAD, a social book discovery platform, was launched in
2010. The claimed purpose was to provide Flipkart with a social
recommendation network so that customers could make educated
purchasing decisions based on social recommendations.
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● Letsbuy.com, India's second largest e-retailer in the electronics
industry, was founded in 2012. According to estimates, Flipkart
purchased the firm for US$ 25 million.
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everything from product specs to making sure all product-related
material shows correctly on the site.
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One of Flipkart's key differentiators is its emphasis on customer
satisfaction. During their time with Flipkart, they want their customers
to have the finest online shopping experience possible – and they will
do all in their ability to make that happen! Despite the fact that every
employee at Flipkart is accountable for providing a positive customer
experience at all times, it is our 24X7 customer support staff that has
been successful in setting unparalleled standards in the service sector.
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When it comes to organisational growth, Flipkart has done it in a way
that has allowed it to emerge as a leader in the Indian e-commerce
market today. The high calibre, active, and adaptable staff that has
enabled us to keep up with the pace has made this feasible. Today,
Flipkart attracts highly skilled people from across the sector and from
colleges and universities alike, with the chance to innovate and get
exposure to a high-growth company environment serving as the
primary draws for candidates.
According to recent reports, the firm ships about 20 units every minute,
with 65 percent of all transactions being completed using Cash on
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Delivery (COD). Additionally, the firm intended to increase its
revenues by more than tenfold during this fiscal year.
With the goal of reaching more and more Indian cities, Flipkart is now
investing in expanding its network of distribution centres, warehouses,
and procurement operations, which is currently only in eight cities
across the country. • Flipkart is now investing in expanding its network
of distribution centres, warehouses, and procurement operations, which
is currently in only eight cities across the country.
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• The firm is even establishing its own delivery network, which is
already present in 37 locations and will be expanded even further by
the end of next year. By doing so, the company will be able to save
money on the costs connected with outsourced shipping and logistic
functions.
The site is quite easy to browse, which allows users to quickly find the
information or goods they are looking for online. It even allows users
to search using several criteria, such as price range, search by brands,
search by age group, search by hot-selling, and so on. If a particular
product is not available or is out of stock, the website may ask users to
provide their contact information, and when the product becomes
available, the users will be notified. This helps users stay connected to
the products they are looking for, which leads to repeat and frequent
purchases.
The Flipkart website is both fast and powerful, in that if you search for
any products in the Flipkart Search bar, you will find exactly what you
are looking for in a short period of time, and it is extremely quick to
process payments and transactions thanks to the portals' highly
efficient and flexible payment mechanisms.
In the cash on delivery method, approximately 60% of all orders are
placed. Therefore, because there is a high risk of scams and frauds,
users must have their email account linked and with verified details,
and they must also receive a confirmation code message on their cell
phones or email, after which the users must confirm the unique code
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and the transaction is processed, and the package is usually delivered in
2-3 business days to the confirmed mailing address.
Flipkart is able to deliver the goods within two to three business days.
If an order is not delivered within the given time frame, an urgent
inquiry is sent to the nearest supplier, and the item becomes available.
After that, it will be delivered within 24 hours, depending on the cause
of the hold-up.
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• By 2015, they want to have a tenfold increase in revenue and to have
$1 billion in sales.
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significant threat to Flipkart's dominance. Flipkart, on the other hand, is
a well-known brand in India, and it should be able to compete with
Amazon there. Amazon, as a large corporation, has the potential to
provide severe competition to Flipkart, as Amazon can afford to incur
greater losses in the early stages of establishing a client base. However,
the Indian market is developing at a quick rate as people get greater
access to the internet and become more aware of and trust e-commerce
websites; as a result, the Indian market is large enough at the very least
for these two giants to coexist in a mutually beneficial manner.
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● To identify the variables that influence a website user's
decision to return to or suggest the Flipkart.com website.
The scope of the study is a basic outline of what will be covered in the
study (e.g., a class or a seminar). "Scope" describes the parameters of
this, which can be an object, a theoretical process, an action, or a
combination of these.
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of features and procedure, and the impact of various factors on the
purchasing behaviour of online customers. The geographical area
covered by this study is the National Capital Region of Delhi (India).
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2. REVIEW
OF
LITERATURE
REVIEW OF LITERATURE
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Serkan Aydin, Gokhan Ozer, and Omer Arasil (2005) have
concentrated on measuring the impacts of customer satisfaction and
trust on customer loyalty, as well as the direct and indirect effects of
"switching cost" on customer loyalty in order to better understand
customer loyalty. It was discovered by this study's investigators that
the switching cost element has a direct impact on customer loyalty and
a moderator effect on both customer happiness and trust.
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In their paper, Oyeniyi, Omotayo Joseph, Abioudun, and Joachim
Abolaji (2010) place a strong focus on customer loyalty and customer
switching costs. Switching costs are one of the most talked-about
topics in marketing right now, as marketers try to figure out why
people do what they do. In the present study, the switching cost was
investigated, as well as its correlations with customer retention,
loyalty, and satisfaction in the Nigerian telecommunications industry.
According to the findings of the study, customer happiness has a
favourable impact on customer retention, and switching costs have a
substantial impact on the degree of client retention.
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3. RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
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3.2 Data collection
The data gathering approach used in this specific study consists of two
types of information: primary data and secondary information. When
using secondary data, one must exercise caution since the information
may be skewed because the original data collector may have
highlighted just certain aspects of the information.
Another element might be that the data is outdated and the quality of
the data is uncertain, resulting in a partial image or another aspect.
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be gathered in a variety of methods, including surveys, focus groups,
and observational studies.
The core data in this study is obtained through the use of a well-
formed questionnaire and a digital survey, both of which are conducted
online. Each question in the questionnaire is divided into two
categories: quantitative and qualitative multiple-choice questions, and
the respondents are asked to select the option that best meets their
needs from a list of multiple alternatives.
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PRIMARY DATA:Questionnaire
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4.
DATA ANALYSIS
AND
INTERPRETATION
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what people thought. As a result, the reasoning behind this study is
dependent on the responses supplied by the respondents themselves.
The primary data for the study was collected through the use of a
questionnaire that was properly prepared. Following a systematic
organisation of the data from 100 respondents in tables and graphs, the
data was subjected to statistical analysis using the relevant statistical
techniques. The findings of the study are provided in the following
part in order to analyse the perception of customers towards online
shopping on Flipkart.com in India, and they are based on the findings
of the study.
As for this analysis, we will take into account two elements. That is:
• Demographic factors
• Behavioural factors
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Demography:
1. Gender of Respondents:
Responses 58 42 100
Percentage 58 42 100
Gender
42%
58% Male
Female
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Analysis and Interpretation:
2. Age Group:
No of respondents 63 24 12 1 100
Percentage 63 24 12 1 100
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Graph 4.2: Age wise respondents
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3. Occupation:
person
Percentage 8 7 46 39 100
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Analysis and Interpretation:
4. Educational Qualification:
Number of respondents 63 36 0 1
Percentage 63 36 0 1
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Graph 4.4: Educational wise respondents
Educational Qualifications
0- 3 L 3-6L 6-9L 9 & above
Number of respondents0% 1% 60 23 13 4
Percentage 60 23 13 4
36%
Graduate
post graduate
63% SSC or Equivalent PhD
5. Annual Income:
Annual Income
4%
13%
0- 3
L
23% 3-6L
60%
6-9L
9 & above
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Analysis and Interpretation:
35
29
30
25 23
21
20
14
15
10
5 4
5 3
1 00
0
Always OftenSometimesSeldom Never
MaleFemale
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More than half of them, or 52 percent, do some internet shopping on a
regular basis. People who usually or primarily purchase online are also
in good numbers, with 9 and 35 percent, respectively, accounting for
44 percent of the total. And the percentage of those who utilise internet
shopping just sometimes is quite small, at only 4%. Due to the fact that
just 44 percent of the population is primarily utilising this, there is a
significant amount of room to fill and make online shopping a huge
success. Furthermore, there is little difference between males and
females when it comes to online buying, which indicates that both men
and women appreciate the convenience and benefits of online
shopping.
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Graph 4.7: Modes of awareness about Flipkart
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advertisement techniques such as search engine marketing, email
marketing, providing links, and blog recommendations to achieve this
goal.
8) Frequency of usingFlipkart.com while online purchasing:
No: of respondents
50
45
45
40
35
32
30
25
No: of respondents
20 17
15
10
6
5
0
Every time Occasionally Most of the time Hardly ever
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Analysis and Interpretation:
No: of 39 20 30 3 4 4 100
respondent
s
Percentage 39 20 30 3 4 4 100
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Analysis and Interpretation:
options
Responses 41 29 8 17 5 100
Percentage 41 29 8 17 5 100
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Responses
45
40
41
35
30
29
25
20 Responses
15 17
10
5 8
5
0
Fast Delivery Availability After Sales Easy Payment Portal Features
Services options
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11) Product selection from the categories given by Flipkart.com:
Rating of the Discounts and Review about the Brand of the Total
product features product product
No: of 14 48 26 12 100
Responses
Percentage 14 48 26 12 100
No: of Responses
60
50
48
40
30 No: of
Responses
26
20
10 14
12
0
Rating of the Discounts and Review about the Brand of the
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product features product product
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Table 4.12: Rating of Flipkart services
Cash on delivery 46 45 5 2 2
30 days replacement 23 55 20 2 0
policy
EMI options 21 48 25 5 1
Free shipping 35 34 17 12 2
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Analysis and Interpretation:
Due to the fact that Flipkart offers a 30-day replacement guarantee for
all of the items available on the marketplace.In addition, this
combination mix service enhanced the level of client confidence.When
it comes to EMI choices, Flipkart is the only website that takes all
major credit cards, allowing users to make more informed purchasing
decisions.In addition, consumers are quite happy with the cash on
delivery service that is offered to them. Even those who gave a lower
rating to this service may have done so because they had a less
customised experience with cash on delivery.
If you want free delivery, Flipkart only offers this service for
purchases totalling rupees 300 or more on their website. As a result, it
may have an impact on some customers who purchase lower-priced
items on a regular basis.
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13) Issues faced by customers while shopping in Flipkart.com
Replaceme
Out of Payment Delay in Faulty No Others Total
nt
stock issues issues Delivery product issues
No of 37 6 6 12 8 30 1 100
Response
s
Percentag
37 6 6 12 8 30 1 100
e
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Analysis and Interpretation:
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In addition, 8 percent of consumers had faulty product issues, and one
Yes No Total
No: of 95 5 100
Responses
Percentage 95 5 100
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Analysis and Interpretation:
1 2 3 4 5 Total
No of 7 11 16 49 17 100
Responses
Percentage 7 11 16 49 17 100
Graph 4.15: Rating the experience fromFlipkart
Pa | 97
Analysis and Interpretation:
49% of customers rated 4 as the experience and more than half of the
population (66%) rated4 & 5 as experience.
Yes No Total
Percentage 81 19 100
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Graph 4.16: Satisfaction on services of Flipkart
Flipkart's service has received positive feedback from 81 percent of the people.
This assists Flipkart in retaining consumers while also demonstrating that the
company's branding and marketing strategies have been successful as well.
FINDINGS:
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● Because many individuals were made aware of this website by their
friends and family when consumers recommended it to them, word
of mouth was more influential in the marketing of this website.
● When buyers notice a large discount on a good-featured product,
they purchase it as soon as they can. As a result, highly
discounted items sold out rapidly.
● It is important to note that the services supplied by Flipkart are
excellent, and that there is even more room for improvement in
terms of growing customer strength.
● Digital marketing tactics such as search engine marketing, linking
to other websites, and advertising were also effective in
promoting this website's visibility.
● One of the greatest services offered by Flipkart is its lightning-
fast shipping.
● The variety of payment alternatives offered on Flipkart
has increased customer satisfaction and ease of payment
while purchasing products on the site.
● Because of the many rules and services offered by Flipkart,
customers report feeling more secure while making purchases
through the company.
● When compared to competitors, Flipkart charges free shipping
for purchases of 300 rupees or more, whilst others offer the
service without any restrictions or limitations.
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● The most serious problem that Flipkart is experiencing is a lack of
inventory.
● When it comes to purchasing items, the majority of customers have
a positive experience with Flipkart.
● The majority of them are pleased with Flipkart's services, and as a
result, the company is successful in keeping consumers.
● The use of advertising is an effective method of making a brand
and its products more familiar to consumers.
● Convenience and time savings are two significant elements that
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5. CONCLUSIONS
CONCLUSIONS
Page | 102
away from physical stores and towards online businesses, which
is fantastic!
RECOMMENDATIONS:
Page | 104
6. BIBLIOGRAPHY:
BOOKS:
Page | 106
● ANALYSIS OF CONSUMER BEHAVIOUR ONLINE Author:
DejanPetrovic
WEBSITES:
www.Flipkart.com
www.commodityindia.com
www.marketoperation.com
www.nextbigwhat.com
www.britannica.com
en.kioskea.net
www.ecommerce-land.com
www.commodityindia.com
www.marketoperation.com
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