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CERTIFICATE
This is to certify that the project entitled AMAZON PVT LTD submitted by YASH
ARYAN of MBA 1st Semester is a Bonafede piece of work conducted under my
supervision and guidance.
No part of this work has been submitted for any other degree of any other
university.
The data sources have been duly acknowledge and it may be considered for
evaluation in partial fulfilment of the requirement for the award of degree of
Master of Business Administration.
HOD
(Management) Supervisor
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DECLRATION
This is to certify that the project entitled AMAZON.PVT.LMT Submitted for the
Degree of MASTER OF BUSINESS ADMINISTRATION of Dr. A . P . J. Abdul
Kalam Technical University, Lucknow. is Bonafide Research work carried out
under the supervision of "MS. NEHAL JAIN" lecturer .
IN "DISHA BHARTI COLLEGE OF MANAGEMENT AND EDUCATION"
and all sources used to complete this project are duly acknowledged.
The research project has not formed for the bases of any other degree.
YASH ARYAN
MBA 1ST YEAR
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ACKNOWLEDGEMENT
"Thanks to the Almighty for showering his blessings"
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CONTENT
I. Introduction ………………………………………….. 6 TO 11
II. Company Profile…………………………………….. 12 TO 18
III. Objective……………………………………………….. 19 TO 28
IV. History…………………………………….…………….. 29 TO 34
V. Literature Review………………………….……….. 35 TO 44
VI. Theoretical Framework…………………….……. 45 TO 58
VII. Research Methodology……………………….…. 59 TO 62
VIII. Innovation………………………………………….….. 63 TO 66
IX. Questionnaire with charts……………….…….. 67 TO 70
X. Suggestion……………………………………………… 71 TO 76
XI. Conclusion……………………………………………… 77 TO 77
XII. Limitation……………………………………..……….. 78 TO 79
XIII. Reference……………………………………..……….. 80 TO 82
XIV. Bibliography…………………………………………… 83 TO 83
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INTRODUCTION
Internet has expanded and developed fast during the past years and has opened
up opportunities to reach out to customers through new. Internet offer
possibilities for marketers to reach consumers through online communication
and has therefore affected marketing in a large extent. Marketers can
communicate and interact with their customers through the Internet. The usage
of marketing on the Internet to communicate a message to consumers has
grown and has become to play a significant role in companies’ promotional mix.
The Internet has been the media which people has adopted and accepted the
fastest and the usage of the Internet has increased. Companies today need to
think about which media channels to use when communicating their marketing
to the audience. Companies that are selling their products or services through
traditional channels will be affected by the Internet as a media whether they
choose it or not.
The invention of internet has created a paradigm shift of the traditional
way people shop. A consumer is no longer bothered about opening times or
specific locations. Customers can purchase products services at a time
anywhere.
Nowadays, the Internet is being widely used for various purposes and has
become part of daily life. At its inception internet was used as a medium for
communication only but with time it has become a source to learn, entertain
and most recently a medium for the exchange of goods and services between
buyer and seller. The internet now has resulted in a new mode of exchange
between buyer and sellers and has created an alternative for the traditional
marketplace. Shopping through the internet has brought a different dimension
to commercial activities. Compared to traditional shopping, consumers are
preferring the internet as shopping medium because of its characteristics
like ability to view and shop at any time from any corner of the world, feature
like searching information about commodities, place a query / review or give
purchase orders. Along with these features, convenience and comparatively
lower price are some additional features resulting in acceptance of internet as a
new shopping avenue.
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While shopping online, every customer desire convenience, speed, price
benefits, product comparison facility etc. It is not that these features are not
available in traditional shopping methods. But due to changes in life style, the
notions of these features have changed among the buyers. Now individuals are
finding it difficult to shop from traditional channels due to their changed
lifestyle. As a result of all these issues along with the technological
advancements, a new mode of shopping i.e. online shopping also called as
electronic shopping has emerged. The Internet, in the field of shopping, has
brought sea changes in the mindset of customers with reference to convenience,
speed, price, product information and services associated with online shopping.
The internet has provided marketers with a completely new way to create value
for customers and build relationships with them' in the form of online shopping.
Online shopping is the process whereby consumers directly, without an
intermediary service, buy goods or services from a seller in real-time over the
Internet. One way of doing electronic commerce is online shopping. In online
shopping, electronically the sale or purchase of transaction takes place. It is also
referred to as e-shopping where 'e' stands for Electronic Shopping. Electronic
shopping is defined as a computer activity/exchange performed by a consumer,
via a computer-based interface, where the consumer's computer is connected
to and can interact with, a retailer's digital storefront to purchase the products
or services over the internet.
An e-shop allows the customer to
browse entire range of product or
service offered by e-vendor, view
pictures of the products, along with the
complete description of the product
specifications, including features and
prices. On online stores with the help of
"search" features shoppers can easily
search out specific models, brands or
items. An online shop is also referred to
as, e-shop, e-store, internet shop, webs
hop, webstore, online store, or virtual store. In present time almost all the big
retailers are now offering their online shops. These are also known as e-tailer's
and their online retail shops are sometimes known as e-tail.
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1.1 BACKGROUND OF THE STUDY
The invention of internet has changed the way businesses runs all over the world
(Adnan, 2014). Use of the internet and e-commerce has been growing rapidly
since the last decade (Yörük et al. 2011). Over the internet with a few clicks of
mouse, people can connect with friends and families from distance (Khalil,2014).
The people use the internet for many reasons such as searching product
information, evaluate price and quality, choose services, and transfer payments
(Moshref et al. 2012). In various technologically developed countries, internet
has become an important medium of communication and online shopping
People can search products and information 24 hours a day over the internet
where a wide selection of products is available (Moshref et al. 2012). In addition
to the popularity of internet, the growth of online shopping business is
increasing every year (Ariff et al. 2013). There has been a move towards online
shopping because of different online factors including convenience, ease of use,
low cost, time saving, various online shopping because of different online factors
including convenience, ease of use, low cost, time saving, various online
products and brands, with fast delivery as compared to shopping physically
(Adan,2014).
Online shopping is the third most common use of internet after web surfing and
email uses (Yörük et al.2011). Like in all marketplaces, also on the internet buyers
and sellers come together to share products, services, and information (Adnan,
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2014). Consumer can buy the products and services anytime from anywhere and
thereby pass over the limitations of time and place (Adnan, 2014). Online
shopping behaviour consists of buying process of products and services through
internet (Moshref et al. 2012). The buying process has different steps similar to
physical buying behaviour (Liang & Lai, 2000). In a normal online purchasing
process, there are five steps involved. Initially when the consumer identifies his
or her needs for a product or service, then one moves to online and search for
the information. After gathering product information, the consumer evaluates
the product with other available options selecting an item according to his/her
requirement and criteria making transaction for selected products and gets post
purchase experience (Kotler, P. 2000). Online shopping behaviour relates to
customer's psychological state regarding the accomplishment of online buying
(Li & Zhang, 2002).
India had an internet user base of about 354 million as of June 2015 and
is expected to cross 500 million in 2016. Despite being the second-largest
userbase in world, only behind China (650 million, 48% of population), the
penetration of e-commerce is low compared to markets like the United States
(266 million, 84%), or France (54 m, 81%), but is growing at an unprecedented
rate, adding around 6 million new entrants every month. The industry consensus
is that growth is at an inflection point. In India, cash on delivery is the most
preferred payment method, accumulating 75% of the e-retail activities. Demand
for international consumer products (including long-tail items) is growing much
faster than in-country supply from authorized distributors and e-commerce
offerings. Largest e-commerce companies in India are Flipkart, Snapdeal,
Amazon India, Paytm. 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 of the growth for the industry has
been triggered by an increase in internet and smartphone penetration. The
ongoing digital transformation in the country is expected to increase India's total
internet user base to 829 million by 2021 from 636.73 million in FY19. India's
internet economy is expected to double from US$ 125 billion as of April 2017 to
US$ 250 billion by 2020, backed primarily by E-commerce. 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.
Propelled by rising smartphone penetration, launch of 4G network 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
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India is expected to grow 31 per cent to touch US$ 32.70 billion in 2018, led by
Flipkart, Amazon India and Paytm Mall. Smartphone shipments in India
increased eight per cent y-o-y to reach 152.5 million units in 2019, thereby
making it the fastest among the top 20 smartphone markets in the world.
Internet penetration in India grew from just 4 percent in 2007 to 52.08 per cent
in 2019, registering a CAGR of 24 per cent between 2007 and 2019. The number
of internet users in India is expected to increase from 687.62 million as of
September 2019 to 829 million by 2021.
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• In April 2020, Swiggy received an additional USS 43 million funding as part
of its ongoing Series I round.
• In May 2020, PepsiCo India partnered with Dunzo for its snack food brands
that include Lay's, Kurkure, Doritos and Quaker.
• In May 2021, chocolate maker Hershey India partnered with Swiggy and
Dunzo to launch their flagship online store in order to increase reach.
• In Union Budget 2020-23, Government has allocated Rs 8,000 crore (US$
1.24 billion) to BharatNet Project to provide broadband services to
150,000-gram panchayats.
• In August 2022, Amazon acquired 49 per cent stake in a unit of Future
Group.
• Reliance will invest Rs 20,0000 crore (US$ 2.86 billion) in its telecom
business to expand its broadband and E-commerce presence and to
offer5G services.
• In September 2022, PhonePe launched super-app platform 'Switch' to
provide a one stop solution for customers integrating several other
merchants' apps.
• In November 2023, Nykaa opened its 55th offline store marking success in
tier Il and tier Ill cities.
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Online offers like Great Indian Festival by Amazon, Big Billion Day by
Flipkart, etc have a huge impact on the customers buying behaviour. Among this
Amazon Great Indian Festival is much more popular.
It is the biggest offer period of the year with mega discounts across various
categories. The e-commerce giant takes care of your savings with online
shopping deals. You get offers on fashion, electronics, accessories, groceries and
more. In addition to the discounts, you can also save with bank offers and
Amazon pay balance offers.
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the physical analogy of buying products or services at a bricks-and-mortar
retailer or in a shopping centre. The process is called Business-to-Consumer
(B2C) online shopping. Nowadays almost all biggies in retail segment are
electronically present on the World Wide Web Online marketplaces have
significantly reduced financial and reputational barriers of entry into world
market for Small and Medium Enterprises (SMEs). These marketplaces provide
web presence, marketing and payment services fulfilment and other services.
Due to this Small and Medium Enterprises focus on their core competencies.
These SMEs get chance to build a reputation at low cost relative to the offline
environment by the one click feedback of customer ratings online.
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address security issues while doing online transactions. Another major
milestone which took place is the introduction of PayPal system in 1998. PayPal
is the company which provides an alternative (through the internet) for cash or
check payment. As a result of these two inventions, many European and
American businesses created their ecommerce websites between 1998 and
2000. Some of them were Amazon, e-Bay, Alibaba, Indiamart. Till the year 2000,
a large number of online vendors came in the industry with the speculation of
ever-increasing profit with time. Unfortunately, in the same year, the e-
commerce market went down and many of players were wiped off from the
industry. This downfall even could not stop the ecommerce industry to grow.
Many new players and even the retailers who were having the brick and mortar
stores started offering their products online by means of their online websites.
After year, 2000 to till date the e-commerce industry kept growing with day by
day increasing number of players. Even like an offline business, many big e-
commerce companies started acquiring small e-commerce companies in order
to achieve higher levels of profit. Some e-commerce companies like Amazon
have also issued their IPO so early in the year 2011 only. After 2000 various
different models of E-Commerce came into existence. Along with this it has been
observed that hundreds of e-commerce services such as online food ordering,
media streaming, online advertising, online marketplace, brick and mortar
retailers, e-commerce payment systems and online store fronts have emerged.
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felt were the five most promising products, which included: compact
discs, computer hardware, computer software, videos, and books. Bezos
finally decided that his new business would sell books online, because of
the large worldwide demand for literature, the low unit price for books,
and the huge number of titles available in print.[12] Amazon was founded
in the garage of Bezos' rented home in Bellevue,
Washington.[9][13][14] Bezos' parents invested almost $246,000 in the start-
up.[15]
On July 16, 1995, Amazon opened as an online bookseller, selling the
world's largest collection of books to anyone with World Wide Web
access.[16] The first book sold on Amazon.com was Douglas
Hofstadter's Fluid Concepts and Creative Analogies: Computer Models
of the Fundamental Mechanisms of Thought.[17] In the first two months of
business, Amazon sold to all 50 states and over 45 countries. Within two
months, Amazon's sales were up to $20,000 per week.[18] In October
1995, the company announced itself to the public.[19] In 1996, it
was reincorporated in Delaware. Amazon issued its initial public
offering of capital stock on May 15, 1997, at $18 per share, trading
under the NASDAQ stock exchange symbol AMZN.[20]
Barnes & Noble sued Amazon on May 12, 1997, alleging that Amazon's
claim to be "the world's largest bookstore" was false because it "...wasn't
a bookstore at all. It's a book broker." The suit was later settled out of
court and Amazon continued to make the same claim.[21] Walmart sued
Amazon on October 16, 1998, alleging that Amazon had stolen
Walmart's trade secrets by hiring former Walmart executives. Although
this suit was also settled out of court, it caused Amazon to implement
internal restrictions and the reassignment of the former Walmart
executives.[21]
In 1999, Amazon first attempted to enter the publishing business by
buying a defunct imprint, "Weathervane", and publishing some books
"selected with no apparent thought", according to The New Yorker. The
imprint quickly vanished again, and as of 2014 Amazon representatives
said that they had never heard of it.[22] Also in 1999, Time magazine
named Bezos the Person of the Year when it recognized the company's
success in popularizing online shopping.[23]
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per requirement then return it. the method makes shopping simple and also
time saving.
Here is that the illustrative list of shopping websites available in India:
PAYTM: This website started even as mobile recharge app, now Paytm
become the Indian Alibaba. Paytm provides variety of services like mobile
recharges, bill payments, ticket and hotel booking alongside wide selection of
generic products. Paytm offers cash back alongside the discounts, which make it
different from the shopping site. Sometime such cash back make an enormous
difference and save your extra cash.
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streaming, and artificial intelligence. It is considered one among the large Four
technology companies, alongside Google, Apple, and Facebook. It has been
mentioned as "one of the foremost influential economic and cultural forces
within the world" also because the world's most precious brand.
Amazon is understood for its disruption of well-established industries
through technological innovation and mass scale. It is the world's largest online
marketplace, AI assistant provider, live-streaming platform and cloud computing
platform as measured by revenue and market capitalization. Amazon is the
largest Internet company by revenue in the world. It is the second largest private
employer within the us and one among the world's most precious companies.
The parent company Amazon, Inc. was founded by Jeff Bezos on July 05, 1994.
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by market capitalisation. In 2017, Amazon acquired Whole Foods Market for
US$13.4 billion, substantially increasing Amazon's footprint as a physical retailer.
In 2018, Bezos announced that its two-day delivery service, Amazon Prime, had
surpassed 100 million subscribers worldwide.
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Objective
The 5 Main Objectives of Business
There are five primary objectives of business- economic, social, human,
national, and global. Let's dig deeper into the types of business
objectives.
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Human or Individual Objectives of
Business
Human objectives are one of the most crucial primary objectives of
business, targeting the well-being of the employees or workers. Human
objectives include the economic, social, and psychological factors of
employees. The people within the business are critical assets. Be it
planning, strategies, or execution; the people are involved in every
aspect of the business. Therefore, an employee's overall well-being and
development should be emphasized in any business.
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Profit Earning
Every business is centered around the motive of earning profit. This
economic objective of business helps them to generate revenue and
survive in the competitive market. Profits help in wealth creation,
investments, marketing, innovation, and increased social responsibility.
Profit making makes it easy to pave the way for social objectives of
business within and outside the territory of the working space.
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Increasing Productivity
Productivity plays a key role for any business to thrive and expand.
Stagnated productivity or decreased productivity affects the profits and
business operations. Therefore, constant efforts need to be made to
boost productivity in every aspect of a business. Technology, flexibility,
working environment (Check out the best monitors you could procure
for your employees and office), interactions, and human resource
management are significant in increasing productivity.
Employment Generation
Employment generation is highly significant among the social objectives
of a business. Employment is a pathway to the overall growth of an
individual, providing income, financial independence, and opportunities
to different sections of society. Generating inclusive employment
opportunities is an important social responsibility of any business. The
TATA Group is the best example exhibiting employment generation
across industries and demography uplifting society.
Community Service
Business owners should extend their services towards the development
of society via community service. Even small initiatives can bring about a
change if done right. There are many ways your company could help
people, like focusing on weaker sections/ classes of society and
providing opportunities to physically and mentally challenged individuals.
Inclusiveness is the key. Although it is not obligatory, community service
is an integral part of the primary objectives of any business.
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feel they are being underpaid, it affects their output. In many cases, they
leave their jobs, leading to re-hiring new individuals and training them.
Thus, ensuring competitive salaries becomes an integral part of the
human objectives of a business.
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What are the National Objectives of Business?
Businesses are an inseparable part of the nation. Every business must
work for national development and growth. The crucial national
objectives of business include the creation of employment, promotion of
social justice, contribution to the nation, helping self-sufficiency, and
increasing exports.
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Excellent Customer Service
Customers are the king of the market. The product or service must be of
desirable quality to satisfy and attract consumers. Providing a mediocre
service and product would impact your business operation, and your
customer retention takes a hit. Therefore, ensuring customer service is
important in building a connection with the customer and your business.
Good customer service leads to prosperity and expands the customer
base.
Sustainable Growth
While conducting business operations and making profits, considering its
impact on the environment is important. So, businesses should find and
look for sustainable alternatives for business operations, causing less
harm to the environment. For instance, use metal or paper cups in your
restaurant instead of plastic ones. Hence, having sustainable growth that
benefits the environment with your business.
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income, like sales money, is being deposited in your bank account. A
healthy cash flow saves you from being cash-strapped.
wastage
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• Employees getting paid according to industry standards with paid
sick leaves
How can Amazon Business help you in setting the primary objective of
your business?
Amazon Business could help your business, company, or organization to
achieve primary objectives like profitable product procurement, business
growth, and customer satisfaction. An Amazon Business account gets
you close to the primary business objectives in the following manner:
consumer base
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HISTORY
Jeff Bezos founded Amazon in July 1994. He chose Seattle due to technical talent
as Microsoft is found there. In May 1997, the organization went public. The
company began selling music and videos in 1998, at which time it began
operations internationally by acquiring online sellers of books in United Kingdom
and Germany. The following year, the organization also sold video games,
consumer electronics, home-improvement items, software, games, and toys
additionally to other items.
In 2002, the corporation started Amazon Web Services (AWS), which provided
data on internet site popularity, Internet traffic patterns and other statistics for
marketers and developers. In 2006, the organization grew its AWS portfolio when
Elastic Compute Cloud (EC2), which rents computer processing power also as
Simple Storage Service (S3), that rents data storage via the Internet, were made
available. That same year, the corporate started Fulfilment by Amazon which
managed the inventory of people and little companies selling their belongings
through the corporate web site. In 2012, Amazon bought Kiva Systems to
automate its inventory-management business, purchasing Whole Foods Market
supermarket chain five years later in 2017.
BOARD OF DIRECTORS
As of September 2020, the board of directors is:
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Thomas O. Ryder, former Chairman, and CEO, Reader's Digest Association
Patty Stonesifer, President, and CEO, Martha's Table
Wendell P. Weeks, Chairman, President, and CEO, Corning Inc.
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.
personal-care items, industrial & scientific supplies, kitchen items, jewellery,
watches, lawn and garden items, musical instruments, sporting goods, tools,
automotive items and toys & games. [citation needed] In August 2019, Amazon
applied to have a liquor store in San Francisco, CA as a means to ship beer and
alcohol within the city. Amazon has separate retail websites for some countries
and also offers international shipping of some of its products to certain other
countries.
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Recently, Amazon India has been planning and trying to acquire the BigBasket,
which is India's biggest online food and grocery store, offering more than 18,000
products.
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To understand whether the of customers are ready to spend more during
Amazon Great Indian Festival.
To study the level of customer satisfaction during Amazon Great Indian
Festival.
The study is to analyse the effect of Amazon Great Indian Sale on Consumers
buying behaviour. From the time of problem identification stage to the report
writing, the researcher had come across various constraints and these are listed
below.
• The researcher had a very limited time for conducting the study.
• The study mainly focuses on Trivandrum district and hence generalizing it
in the global scenario can have significant change in results
• The study was conducted during the COVID-19 pandemic situation.
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LITERATURE REVIEW
1. Dr. Parveen Maan, (2018) concludes in his research that Online
shopping has become extremely popular over the last decade. But still the most
of the customers prefer to shop from the physical market. In this category, mostly
the students are involved. Utilized mostly by the "Next Generation", this service
is extremely convenient. Although online shopping can be very convenient and
beneficial there are also some potential problems that can arise. Consumers are
seen to exhibit different buying behaviours when shopping online than the
physical store". He explains that "this makes it imperative that retailers study the
behaviour of consumers and make changes in order to remain profitable and
successful. The results indicate that the respondents mostly from working
segment are adopting the modern shopping methods and have perceived online
shopping in a positive manner
2. Mohammed Anisur Rahman et al. (2018), Bangladeshi
online shoppers are young (mostly below 40 years) similar to other parts of the
world. They do online shopping because it saves time, offers home delivery,
provides ease in shopping and offers more variety of products for apparels,
accessories, and ticketing than that of brick and mortar stores. They mostly rely
on price and their experience as the basis of the quality judgment of items in
online shopping and for payment system they prefer cash on delivery option.
Most of the shoppers get the information primarily from Facebook
advertisements which are pursued by friends and family by following their "word
of mouth" communication. However, privacy and inability to touch and feel are
the most disliking factors for online shoppers. These findings of our study have
both theoretical and practical implications".
3. Priyanka Sharma (2017) performed a research study on Consumer
Behaviour towards Online Shopping in Bhiwani City, Haryana. The main objective
of the research was to identify the relationship of demographic factors that
influence online shopping, to study the preferences of the consumers toward
online shopping and the satisfaction level of the consumers while they shop
online. The sample size of the research was 100 respondents. After the data
analysis and interpretation, the researcher found out that the internet has given
huge scope for businesses through online. The people having an annual income
below Rs 2,50,000 opts cash on delivery and above Rs 2,50,000 opts online
payments options. The most of the people having annual income below Rs
4,50,000 spends between 1500-3000 per month for online shopping. People
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having annual income above Rs 4,50,000 spends above 3000 per month for
online shopping. The Majority of the respondents buys from flipkart.com which
is one of the most popular online shopping platforms in India. The main barrier
is the safety of payment and privacy issue in the process of online shopping.
Sellers have to make proper strategies to increase the consumer's level of trust
with them.
4. Pawn Kumar, Kanchan (2017) performed a research study to
understand Online Shopping Behaviour among Students in Ludhiana, Punjab,
India. The main objective of the research was to understand the online purchase
behaviour of youth in India and to study the factors which contribute to online
shopping. The sample size of the research was 400 respondents from Ludhiana
city. As a result of data analysis, the researchers found that students are those
who mostly go for online shopping. There are several factors such as quality of
products, delivery time, products checking on the spot, return policy etc. which
customer look before online shopping. So the online retailers must be aware of
these factors to be successful and retain the customers
.
5. M. Dhanalakshmi, M. Sakthivel, M. Nandhini (2017)
performed a research study on Customer Perception towards Online Shopping
in Salem. The main objective of the research was to study the customer
perception towards online shopping at Salem district. The sample size of the
research was 150 respondents. The researchers had adopted random
convenience sampling technique to gather the data. The researchers conclude
that the consumer's perception of online shopping varies from person to
another and the perception is limited to a certain extent by the availability of the
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proper connectivity and the exposure to the online shopping has to be improved
to make the customer satisfied. The perception of the consumer also has
similarities and difference based on their personal characteristic usage based on
their needs and demand. The study reveals that most the students are attached
to the online shopping and hence the elder people don't use online shopping
much as compared to the younger ones, so awareness has been fashioned in the
coming era. Finally, the researchers suggested that the online transaction should
be flexible for the customers who perceived in shopping.
6. Dr. T. Thirupathi and I. James (2017) performed a research
study on shopping becoming popular now days. Even though some problems are
identified from the online shopping, still it is convenient and beneficial from the
respondent's point of view. The research study reveals that specifically the
younger generations are mostly and frequently engaged in process of online
shopping. No doubt, the factors viz., quality, discount, simple payment methods,
less expensive are the factors influenced the online buyers and account for
consumer satisfaction.
7. Ashwini. N, Manjula. R (2016) performed a research study on
"An Empirical Study on Consumers Perception towards Online Shopping". The
main obiective of the research was to understand the key motivators for
consumers to search and shop online. It also investigates how different types of
online buyers perceive a website differently. The sample size of the research was
40 respondents. The findings of the proposed research work are as follows as
that online consumer concerns about lack of opportunity to examine the
products prior to purchase are regarded as specific factor affecting the online
buying decision. Also Customer goes online very often to compare the prices and
features of the various branded products and services. Then Most of the
respondents say online shopping helps them quick accessibility of a wide variety
of products. Cash on delivery and easy replacement are one of the advantages
of online shopping. Finally, the researcher concludes that Online shopping
enables the customers to buy from any part of the world at any time providing
better opportunity and also benefits like cash on delivery, easy replacement,
convenience, fast refund, time saving and secured Delivery of the product,
confidentiality, etc. The site enables them to browse before they shop, and to
research the product so they have more confidence in what they are buying.
8. Manisha Kinker, N.K. Shukla (2016) performed a research
study to understand the Consumer Behaviour towards Online Shopping of
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Electronic Goods in Bhopal and Jabalpur city. The main objective of the research
was to study in detail about consumer Behaviour towards online shopping of
electronic goods, to study consumers expectations of online stores, to find out
factors that influences the consumers towards online shopping and to analyse
the consumers wants and needs in Bhopal and Jabalpur city. The sample size of
the research was 40 respondents of Bhopal and Jabalpur city. The researcher
found out Time Saving, Product Quality, Product Price, Convenience,
Accessibility, Shop Anywhere and Anytime as the main factors that influence
customers attitude towards online shopping of electronic products. The
secondary factors that influences customers attitudes towards online shopping
of electronic products are technological factors, assured quality, cash on delivery
and various promotions and discounts. The attitude towards online shopping is
different in Bhopal and Jabalpur city. c
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bright. Online shopping gives customers best alternatives to save money and
time. Companies Offers detail product information, easy mode of payment,
facility of comparison of price and very important completely hassle-free
shopping experience. The Success of online shopping depends on its popularity,
its brand image and its unique promotional policies.
13. S. Aruna, A. John William (2015) performed a research study
on Consumer Behaviour towards Online Shopping in Combatore District.
The main objective of the research was to analyse the shopping Behaviour of
online shoppers and to identify the successful online shopping. The sample size
of the research was 384 respondents. From the result, the researchers found out
that people mostly prefer online shopping over traditional shopping because of
the technological developments and its convenience. Even though it is
convenient there are various factors such as price, quality of the product and
delivery time which customers look before shopping. So, the online retailers
must be of aware of these factors to be successful and retain the customers. The
final result from the study is that online shopping is growing rapidly in a positive
manner.
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14. Sonal Kala (2015) performed a research study regarding Behaviour
of Customers towards Online Shopping in India. The main objective of the
research was to find the relationship between various characteristics of online
shopping and customer purchase Behaviour. The sample size of the research was
100 respondents (50 Male Students and 50 Female Students) from Jaipur
national university. After the data analysis, the researcher concludes that
Consumers buying behaviour when shopping online is from when they are shop
in a physical retail store. There is no significant difference between the response
of male and female students of Jaipur National University.
15. S. Aruna, A. John William (2015) performed a research study
on Consumer Behaviour towards Online Shopping in Combatore District. The
main objective of the research was to analyse the shopping Behaviour of online
customers and to identify the successful online shopping. The sample size of the
research was 384 respondents. From the data analysis, the researcher concludes
that people mostly prefer online shopping than traditional shopping because of
the technological features. It has become popular and is extremely convenient.
Even though it is convenient, there are various factors such as price, quality of
the product and delivery time which customers look before shopping online. So,
the online retailers must be of aware of these factors to be successful and retain
the customers. The final result from the study is that, online shopping is growing
rapidly in a positive manner. By removing little flaws, it can be even more
successful
16. G.R.Shalini, K.S. HemaMalini (2015) conducted a research
work on Characteristics of Online Shopping and their Consumer Intention
towards the Purchase of Online Products in the Chennai city. The sample size of
the research was 320 respondents from Chennai city. The researcher had used
Stratified sampling and simple random sampling methods. The nature of the
study was exploratory and descriptive because both primary and secondary data
have been used. The study reveals that there is positive relationship between
the website characteristics and attitude, trust and intention towards
online purchasing.
17. Renuka Sharma, Kiran Mehta, Shashank Sharma
(2014) performed a research work on to understand the Online Shopping
Behaviour of Indian Consumers. The main obiective of the research was to
understand the online buying behaviour of consumers in India and to get
information about the scope of improvement in online shopping platforms. The
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sample size of the research was 120 respondents. After the data analysis, the
researcher found out that Indian customers are also getting addicted to the
online shopping and they do like various features of online shopping like cash on
delivery, convenience, wide variety of choices, etc.
18. Prashant Singh (2014) performed a research work on Consumer's
Buying Behaviour towards Online Shopping, a study of Flipkart.com user's in
Lucknow City. E-retailers give consumers the best way to save money and time
through purchasing online within the range of budget.
Flipkart.com offering some of the best prices and completely hassle-free
shopping experience. The whole concept of online shopping has altered in terms
of consumer's purchasing or buying behavior and the success of E tailers in India
is depending upon its popularity, its branding image, and its unique policies.
19. Prof. Ashish Bhatt (2014) performed a research work on
Consumer Attitude towards Online Shopping in Selected Regions of Gujarat. It
was stated that online shopping is gaining popularity among people specially the
younger generation but in today scenario to become equally popular among all
age groups e-marketing will have to cover a longer distance. As per study mode
of payment is depended upon income of the respondents. People from different
age groups are doing online shopping regularly. The attitude of consumers is
changing with the time. In a country like India, consumers are finding online
shopping very comfortable because of many variables like cash on delivery,
customization or personalization of the websites, home delivery etc.
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20. Pratiksinh Vaghela (2014) performed a research 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 purpose. After the analysis, finally researcher concludes that most of
the customers were perceived that online shopping is better option than manual
shopping and most of the customers were satisfied with their online shopping
transactions. Customers are accessing their net at their home and office college.
Largely customers are buying clothe, electronics items and accessories.
21. Gagandeep Nagra, R. Gopal (2013) performed a research
study to understand the Factors Affecting on Online Shopping Behaviour of
Consumers. The main objective of the research was to identify the impact of
Demographic factors impacting online shopping Behaviour 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 by various
Demographic factors like age, gender, marital status, family size and income
22. Dr. M.Rajesh and G. Purushothaman (2013), study
conclude that, online shopping has becoming more popular day-by-day with
then increase in the usage of (WORLD WIDE WEB) known as www.
understanding the consumer's attitudes towards online shopping, making
improvement in the factors that influence consumers to shop online and working
on factors that affect consumers to shop online will help marketers to gain the
competitive edge over others. From the above data analysis it can be conclude
that, "consumer buys goods from the online shopping website on the basis of
factors like offers and discounts, variety of product available, free home delivery,
website user friendliness" and the hypothesis framed for the project "Consumer
Perception towards Online Shopping" is beneficial for the consumer.
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23. Chandra and Sinha, (2013), considered that, today the fresh
and latest styles of retail shopping are online shopping. It has at the present been
adopted all over the world as well as India. In a lot of other countries this
shopping way is still not as well known or accepted, and though the knowledge
of online shopping in India is now commencement to boost quickly .
24. Bashir, (2013), concluded that E-commerce has completely life very
easy and innovative of individuals and groups; Consumer Behaviour in online
shopping is different from the physical market anywhere he has right of entry to
see the product, revealed that Consumers, all over the world, are more and more
shifting from the packed supplies to the one click online shopping format.
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THEORETICAL FRAMEWORK
CONCEPTUAL MODEL
The following conceptual model is developed on the idea of prior researches
presented into the literature review regarding external online shopping factors.
the aim of conceptual model is to look at the web shopping behaviour of Uppsala
University students and other people visiting University's library at Gotland
campus. This model examined the connection between independent and
dependent online shopping factors. supported the presented literature, the
independent factors are perceived risk (financial risk, product performance risk,
and no delivery risk), psychological factors (trust and security), and website
design factor while dependent factor is consumer's online shoppingbehaviour.
Although this sort of conceptual model is employed in several prior studies to
live the consumers' online shopping behaviour, there are several independent
online shopping factors which influence consumer's online shoppingbehaviour.
it's hard to live all online shopping factors in one model, so this research paper
measures and analyzes only five independent online factors which influence
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consumer's online shopping behaviour. By examining these selected factors, it
also reveals the limitation of this conceptual model.
It is mentioned above about the selection of five online factors that have been
chosen after reading the relevant literature in the field of consumer'sbehaviour
in online shopping. These factors are further described in the following section.
FINANCIAL RISK
A recent study was conducted by Kumar & Dange (2014) where the aim are to
research different dimensions of perceived risk that influence the consumer's
online shopping behaviour. The results of study revealed that online shopping
perceives risk with regard to financial risk, time risk, social risk, and security risk
as they influenced more online consumer's attitude towards online shopping. On
the opposite hand, an equivalent two online buying risk factors are financial risk,
and security risk that have influenced on non-online shoppers. Furthermore,
their study has found two additional barriers of psychological risk and physical
risk among nonbuyer.
Another recent study was conducted by Babar et al. (2014); they used a
Technology Acceptance Model to look at the various factors influence customers
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intention to buy online. This study has investigated the influence of usefulness,
simple use, financial risk, and attitude towards online shopping. The findings
indicate that financial risk have a negative impact on the attitude towards online
shopping where the rationale states that consumer have a fear of monetary loss
and security concern over the web shopping. Gozukara et al. (2014) research
claimed that the perception of risk played an important role to create the
connection between purchase intentions and hedonic motivations.
Furthermore, the study concluded that perceived risk had a negative impact on
consumer's intention toward utilitarian motivation. In contrast, the perceived
risk had no negative impact on influencing consumer's intention toward hedonic
motivation
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store buyers. during this study, the connection was measured among past
positive shopping experiences, perceived risk, and future intention to get within
online shopping environment. The findings of study indicated that online
shopper perceived higher risk in contrast to store buyers. They found that
financial risk, physical risk, convenience risk, and functional risk had more
significantly affected consumer's behaviour in online shopping environment.
Among them, financial risk had a negative effect to influence consumer's
intention to buy online. Consumer had a fear to lose money over the web
shopping. Further study indicated that prime perceived risk led to attenuate
intention to buy online in future as compared to less perceived risk that cause
higher intentions to shop for online.
PRODUCT PERFORMANCE RISK
Masoud (2013) conducted a study on Jordan's online consumers. The aim of this
study has been to examine the perceived risk (financial, product, time, delivery,
and information security) on online purchasing behaviour in Jordan.
The study conducted a survey of 395 online buyers and customers to investigate
the hypothesis of research. He selected the customers that had previous
experience of online shopping, and the study chose the most popular online
stores in Jordan. The study result showed that four perceived risk (financial,
product, delivery and information) had negatively affected online purchasing
behaviour. Moreover, the study indicated that there was no significant effect of
time and social risk on online purchasing among Jordanian consumers.
Yeniçeri & Akin (2013) argued that product risk is related to the poor
performance of a product or brand especially when the performance of a
product or brand does not meet the desired expectations. It is due to consumer's
inefficiency to assess the good quality of product or brand in online stores.
Furthermore, they explained that the consumer's skills to assess the product or
brand are limited in online site due to non-availability of physical inspection of a
product including touching, brand colors, inaccurate information of product
features which results in an increase of the product performance risk. Ji et al.
(2012) studied the consumer attitude towards the online shopping environment
and focused on the impact of different perceived risk to different products. After
generating the results from regression coefficient, the study found that there is
a negative effect of product performance when the consumer buys not
standardized products like clothing while there is a positive effect when the
consumer shops standard products like cell phones.
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DELIVERY RISK
Hong (2015) suggested that the merchandise delivery risk had a positive effect if
consumer ordered the product from a reliable online merchant, thus customers
find ways to approach trustworthy online sellers to scale back the merchandise
delivery risk. During purchasing from reliable online merchant, the buyer feels
safe and secure from undesired product delivery problems. Adan (2014)
indicated that the merchandise delivery had a negative impact on consumer's
buying behaviour. Furthermore, Adan (2014) suggested that online merchants
should provide insurance coverage to online buyers if an item isn't delivered to
the buyer in time. Consumers fear to not receive products in time or delay in
delivery which results in a high product delivery risk (Yeniçeri & Akin 2013).
Moshref et al. (2012) aimed to look at " An analysis of things affecting on online
shopping behaviour of consumers" in an Iranian perspective and determined the
impact of varied perceived risk factors (financial risk, product risk, convenience
risk and non-delivery risk) in online purchasing behaviour. to look at the
hypothesis of this study, they chose different online stores in Iran and
distributed 200 questionnaires among randomly selected online consumers
Their study concluded that two perceived risk (financial, and non-delivery) had
negatively affected online shopping behaviour of Iranian consumers while other
perceived risk (domain specific innovativeness and subjective norms) had a
positive effect on online shopping behaviour of Iranian consumers.
According to Koyuncu & Bhattacharya (2004), many purchasers had less
intention to buy online due to the involvement of delivery risk. The results of the
study found that individuals who buy online once every week or make several
online purchases during a month had negative impact of product delivery risk,
in contrast to those that do online shopping but once a month that they had a
positive impact of product delivery.
TRUST & SECURITY FACTOR
According to Ariff et al. (2013), psychological factor like trust associated with the
extent of the protection an internet site provides and keeps customer's personal
information safe. Furthermore, Ariff et al. (2013) mentioned that trust and
security had a crucial and positive affect on consumer's attitude in online
shopping. Yörük et al. (2011) conducted a study among Turkey and Romanian
consumers' online shopping behaviour and located that in online shopping
environment, trust and security factors were the main obstacles for consumers
to not shop online. They preferred to travel around markets to buy products
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through physical inspections especially Turkey's consumer are more socialized
and luxuriate in to travel to bazaars and spend hours in the shopping malls.
Roman (2007) argued that the safety factor indicates consumer's belief regarding
online shopping also because the security of consumer's financial information
which shouldn't be compromised or shared with a 3rd party in online shopping
context. Ahuja et al. (2007) research claimed that the trust and security are main
obstacles for consumers to not shop online. According to Elliott & Speck (2005),
trust is a crucial factor and broadly affects the web shopping attitude thanks to
online advertisement and online site that takes time to download webpages
associated with consumer's concern towards online security which can steal
personal information.
Monsuwe et al. (2004) research claimed that the breach of consumer's trust
results in negative attitude toward online shopping. On the opposite hand,
keeping consumer's personal information safe and secure results in more
positive attitude toward online shopping. Thus, the trust was an important
psychological factor which affects the intentions of consumer to buy online. A
study by Grabner-Kraeuter (2002) identified two dimensions of trust related
issues: System dependent uncertainty and Transaction specific uncertainty" in
online shopping environment, the study used economic model of trust and
concluded that the trust is more important and basic factor for the reduction of
uncertainty and complexity of monetary transactions and relationship.
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WEBSITE DESIGN FACTOR
Suwunniponth (2014) examined the factors that driven consumers' intention in
online shopping. the character of the study was qualitative and quantitative. He
determined the various online factors like website design, perceived simple use,
perceived usefulness, and trust influence consumers' intentions to buy online
the info was collected through questionnaire and thorough interviews. it had
been collected within the sort of a questionnaire through 350 experienced
online consumers in Bangkok, Thailand then descriptive analysis and path
analysis were used to scrutinize the info. The study revealed that the web site
perceived simple use and usefulness. The trust had significant influence on the
consumers' intention to buy online. The results found that the web site had
significant effect on the consumer's online shopping attitude and online
consumer prefers to possess a user-friendly website in online shopping
environment. The study concluded technology acceptance factors and trust that
had significant relationship with intentions towards different products and
services and also towards intended behaviour to shop.
Adan (2014) aimed to research the influence of various dimensions of perceived
risk, perceived advantages, psychological factors, hedonic motivations, and
website design on online shopping behaviour. The study distributed 100
questionnaires to online buyers in Pakistan. The research found that perceived
advantages and psychological factors had a positive influence on the consumers'
intentions to buy online while perceived risk had a negative impact on the
consumers' attitude toward online shopping. Other factors like website design
and hedonic motivations had not any significant impact on the consumers'
intentions to shop online. Hassan & Abdullah (2010) tried to work out the
influence of independent variables website design, trust, internet knowledge,
and online advertising consumer's online shopping behaviour. He used a
questionnaire survey and it had been filled in by online customers and test the
hypothesis. The results of the study indicated four independent (website design,
trust, internet knowledge, and online advertising) variables where online
shopping had a positive correlation. Furthermore, the research claimed that
website quality had significant impact on online shopping. The research
suggested that the planning of internet sites should be easy to use, convenient,
time saving, easy to load webpage, simple navigation. The comfort of employing
a web page will increase the probability of revisiting increase.
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Osman, et al. (2010) investigated the web consumer behaviour towards online
shopping and used convenience sampling method. The study adopted self-
constructed questionnaire and was distributed among 100 undergraduates of
University Putra Malaysia. The study examined the four different parts and
factors of online shopping attitude like students socio demographic background,
website quality, purchase perception and attitude. The results of the study
revealed that website quality purchase perception, gender and academic
background had direct impact on consumer's attitude towards online shopping.
The findings of study indicated that an honest website quality has different
dimensions of accurate information, quick launch of webpage, and website
connection fast to online shopping. Furthermore, they argued that 77%
respondents were willing to shop for through an honest and top quality website
design while 76% online consumers agreed to shop for through safe and
straightforward to use website design.
Lepkowska-White (2004) conducted a study on "Online Store perception: the
way to Turn Browsers into Buyers?". The study distributed a questionnaire
survey among New England consumers and selected 231 online adult browsers
and 311 online adult buyers. The study claimed that the web browsers as
compared to online buyers were less attractive towards internet shopping. the
explanations and concerns for internet browsers were the standard of website
design.
Li & Zhang (2002) conducted a study supported 20 empirical articles. the aim of
the study was to scrutinize the impact of website quality on e-commerce.
supported content analysis of these studies their research findings indicated that
website design had positively and significantly influenced consumer's attitude
towards online shopping. On the opposite hand, they also found that website
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design had two different segments which consumer perceived in website design
that were hygiene and motivation. Furthermore, they mentioned privacy and
security, easy navigation of website, and complete information associated with
hygiene segment. The absence of hygiene results in dissatisfaction of consumer's
need as compared to enjoyment, quality, cognitive outcome, user
empowerment, and e-retailer information that's linked to motivation segment in
website design. These factors of motivation segment increase the worth of
website design and satisfied consumer's need. In short, an honest and appealing
website design can be helpful for consumers to form their e-shopping easy and
smooth. On the opposite hand, a low-quality website design might be a barrier
for consumers to not shop online.
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Following section covers major predictor and exogenous variables reported in
different studies.
DEMOGRAPHICS CHARACTERISTICS
Online buyers have different characteristics with varying motives to buy online,
consequently have been extensively studied, in the context of attitude,
behavioral intention and adoption of online buying with respect to different
categories of products and different cultural settings. The factors what
characterize the consumer demographic profile: age, sex, occupation, education,
family status, income, living conditions and life expectancy (Andersone & Gaile-
Sarkane, 2009). Age, education and profession have been reported to have
significant impact against other variables- income, gender and ethnicity.
Regarding gender there is no consensus e.g. Chinese male and female consumers
hold similar online shopping intentions (Wen Gong & Maddox,
2011). Same is found even in developed countries. Yet, few reported males more
likely to shop online (Cha, 2011). Interestingly, different online buying motives
have been reported for both the gender. In the same Chinese study age and
Perceived risk were not found significantly different, but income and marital
status were found to have influence on online buying intentions.
Contrary to other findings married with children are more likely to buy online as
compare to singles or married with no children. Which is consistently found in
other studies as well (Brown, Pope, & Voges, 2003). Students as online buyers
have been studied (Al-Swidi, Behjati, & Shahzad, 2012).
TRUST, RISK AND SECURITY
To overcome the inherent limitation of employing different IS-adoption models
which have their foundations in TRA other related psychological theories,
construct of trust, risk and security concerns have been strongly established in
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the online buying literature. "Online trust has been reported to be an integral
component of customer purchase intention in the context of both developed
and developing countries (Thamizhvanan & Xavier, 2013). Perceived trust has
been reported as positively influencing intention, adoption and continuation
behaviour. Other equally important, extensively studied and found as predictor
variables are- risk (having inverse relation) and privacy & security concerns.
Online security concern varies over the product category bought online (Cha,
2011).
SOCIAL INFLUENCES
Subjective norm is defined as -the perceived social pressure that most people
who are important to him/her think he/she should or should not perform the
behaviour in question (Ajzen, 1991; Cameron, Ginsburg, Westhoff, & Mendez,
2012; Fishbein & Ajzen, 2011). SN have been found to be strongly influencing
intention to buy online (Turan, 2012) (Cha, 2011). - Product characteristics Three
major types of product: search, experience, and credence goods (Luo et al.,
2012). Search products are those that can be evaluated from externally provided
information. Experience products, on the other hand, require not only
information, but also need to be personally inspected or tried. Credence
products are those that are difficult to assess, even after purchase and use
(Brown et al., 2003 (Cha, 2011). "Tactility" is ability to examine/ test, in terms of
touch and sight, a product (Alkailani, 2009). Findings for this construct as an has
mixed results in different cultural environments e.g. Chinese are not more
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concerned about the lack of face-toface contact or the inability of them to touch
and feel tangible products or credit as against Americans (Wen Gong et al.,
2012). Study comparing online buying intention of "real" vs. "virtual" items
reported different criterion employed for each by online buyer (Cha, 2011).
There is no uniformly accepted standard product classification available
(Sarigiannidis & Kesidou, 2009) so far in the context of online buying. For virtual
items PEU, PU, enjoyment and security have not found significant, hence
proposed different strategy for both types of items.
SHOPPING ORIENTATIONS
Different shopping orientations have been found (Brown et al., 2003) when
exploring different motivations e.g. personalizing shoppers, recreational
shoppers, economic shoppers, involved shoppers and convenience shoppers.
"Impulse purchase orientation" has significant impact on the customer online
purchase intention but "quality orientation" and "brand orientation" also has not
impact (Thamizhvanan & Xavier, 2013). But there is no consensus on the relevant
classification of online buyers. Moreover, which class dominates the total
segment of online buyers is not identified. Some study reported convenience as
the major orientation other highlighted economy or personalizes. Moreover,
shopping orientation is not found significant enough for online buying
intentions.
WEBSITE CHARACTERISTICS
Website design along with customer service and pricing have been reported as
major "retailer characteristics" affecting online buyer satisfaction (Luo et al.,
2012) (Mishra & Priya Mary Mathew, 2013). Perceived control over site
navigation and product category are primary factors influencing website quality.
Study highlights that "high trust consumers" who spend more and buy more
often online the "return policy" cannot compensate the poor website design
(Bonifield et al., 2010). Website quality influence consumers' perceptions of
product quality, and affect online purchase intentions (Sun, Chen, & Huang,
2014) and even continuation intentions. Signal credibility found to strengthen
the relationship between website quality and product quality perceptions for a
high-quality website.
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OTHER VARIABLES
Internet Proclivity is frequency of internet usage (Alkailani, 2009) has been
studied. "Prior online purchase experience" positively effect on the customer
purchase intention (Brown et al., 2003) even in the context of developing
countries (Thamizhvanan & Xavier, 2013). Many other diverse variables
have been reported.
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RESEARCH METHODOLOGY
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RESEARCH DESIGN
Research design is an agreement or condition for collection and analysis of data
that aims to combine significance to the research with an economy in process.
Here Descriptive research design is used.
SOURCES OF DATA
For the further development of this study, mainly two sources were used:
Primary and Secondary Data.
NEERING
PRIMARY DATA AND SECONDARY DATA
The necessary data have been collected from both primary sources and
secondary sources.
• Primary data
The primary data was collected by means of a survey. A structured questionnaire
was developed and distributed through online in Trivandrum.
• Secondary data
The secondary data was collected from company website, company brochures,
journals, and reference books.
POPULATION
The study mainly focuses on Trivandrum District.
SAMPLING DESIGN
A sampling is a definite plan for obtaining a sample from given population.
Here, non-probability technique is used for data collection through samples.
SAMPLING TECHNIQUE
A purposive sampling technique was applied to select the sample items from the
population., also referred to as a judgmental or expert sample, is a type of
nonprobability sample. The main objective of a purposive sample is to produce
a sample that can be logically assumed to be representative of the population.
METHOD OF DATA COLLECTION
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A structured questionnaire was developed and distributed online ca. The first
part of the questionnaire intends to collect the demographic information of the
respondents and it was followed by questions regarding the concept of
webrooming and showrooming. A five-point Likert scale was used in the
questionnaire.
DRAFTING A QUESTIONNAIRE
A structured questionnaire was prepared and it was distributed through google
sheets. The questionnaire starts with the demographic factors of the
respondents and it is followed by sections of question regarding Customer
Purchasing Behaviour and Amazon Great Indian Festival. Detailed questionnaire
was attached in the Appendix 1.
PILOT STUDY
Pilot survey is in fact the replica and rehearsal of the main survey. Such a survey,
being conducted by experts, brings to the light the weaknesses (if any) of the
questionnaires and also of the survey techniques. From the experience gained
in this way, improvement can be affected.
The questionnaire was shared with randomly selected 300 respondents in order
to identify the ambiguities in the questionnaire. To ensure the validity of the
questionnaire a thorough literature review was conducted and expert opinions
were gathered.
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T-TEST (The One Sample T-Test determines whether the sample mean is
statistically different from a known or hypothesized population mean.)
RELIABILITY TEST
Reliability is consistency of measurement (Bollen, 1989), or stability of
measurement over a variety of conditions in which basically the same results
should be obtained (Nunnally, 1975).
Cronbach Alpha is the measure to check reliability of the instrument. According
to some previous research done in the area Alpha value above 0.6 is acceptable.
With the help of SPSS 20, Reliability test has been performed on Likert Scale
items. For attitudinal scale used in questionnaire, the Cronbach Alpha value
obtained was 0.934. Therefore, the research instrument used was
considered as reliable.
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customer
experience
Through innovation, Amazon can introduce new features, services, and
technologies that improve the overall shopping experience for
customers. This can include faster delivery options, personalized
recommendations, and convenient payment methods.
Increased
efficiency
Innovation can streamline operations within the Amazon business,
making processes more efficient and cost-effective. This can lead to
faster order fulfillment, optimized inventory management, and reduced
operational expenses.
Sustainability
initiatives
Amazon can use innovation to drive sustainability efforts, such as
implementing eco-friendly packaging, optimizing transportation routes
to reduce emissions, and promoting recycling and waste reduction.
Job creation
and
economic
growth
As Amazon continues to innovate and expand its business, it creates job
opportunities and contributes to economic growth in various regions.
This can have a positive impact on local communities and economies.
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CASE STUDY
We can consider implementing a subscription model in the Amazon Business
app. Sellers who opt for the subscription would be charged a yearly fee of ₹5000.
In return, they would enjoy a reduced commission rate of 10% on their sales. On
the other hand, sellers who choose not to subscribe would have a higher
commission rate of 15% applied to their sales. This approach aims to incentivize
sellers to subscribe and benefit from the lower commission rate, while still
providing an option for sellers who prefer not to subscribe.
It's a strategic way to encourage seller participation and generate revenue
for the platform.
Questionnaire with charts
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Questionnaire with charts
1. How do you think the new Amazon Business app can benefit small retailers
in terms of connecting with big wholesalers?
a) Expand inventory options and competitive pricing
b) Streamline procurement workflow
c) Simplify communication with wholesalers
d) All of the above
3. From your perspective, how do you think the Amazon Business app can help
streamline the purchasing process for small retailers?
a) Centralized platform for browsing and ordering products
b) Efficient procurement workflow
c) Simplified communication with wholesalers
d) All of the above
4. What do you think are the potential challenges or obstacles that small
retailers might face when using the Amazon Business app to connect with big
wholesalers, and how do you think those challenges can be addressed?
a) Competition from other retailers
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b) Managing inventory levels
c) Building relationships with wholesalers
d) All of the above
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5. In your opinion, what are the key advantages of using the Amazon Business
app compared to traditional methods of connecting with wholesalers for small
retailers?
a) Vast selection of products
b) Competitive pricing
c) Convenience of a digital platform
d) All of the above
6. How do you envision the Amazon Business app impacting the overall
success and growth of small retailers who rely on connecting with wholesalers
for their inventory?
a) Expanding inventory options
b) Improving profitability
c) Thriving in a competitive market
d) All of the above
7. How do you think the Amazon Business app can help small retailers expand
their product offerings and compete in the market?
a) By providing access to a wider network of wholesalers and a variety of
products.
b) By offering tools for inventory management, order tracking, and analytics.
c) By enabling retailers to make data-driven decisions and optimize
operations.
d) All of the above.
8. In your opinion, what are some potential benefits for big wholesalers in
partnering with Amazon Business and utilizing their new app?
a) Access to a large customer base and increased sales volume.
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b) Streamlined order processing and fulfillment, improving operational
efficiency.
c) Enhanced credibility and visibility through Amazon's brand reputation.
d) All of the above.
9. Do you think the Amazon Business app has the potential to disrupt the
traditional supply chain model? Why or why not?
a) Yes, by connecting retailers and wholesalers on a centralized platform.
b) No, because traditional supply chain players can adapt to the changing
landscape.
c) It depends on industry dynamics and adoption rates.
d) All of the above.
10. What are some additional features or improvements you would like to see
in the Amazon Business app to further enhance the experience for both small
retailers and big wholesalers?
a) Enhanced search and filtering options.
b) Integration with popular accounting and inventory management software.
c) Advanced analytics and reporting capabilities.
d) All of the above.
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Suggestion
In addition to the seller’s rating and product price, Amazon also uses the
keywords in the product title to rank the listing. Amazon’s product titles are
limited to 500 characters and are recommended to include brands, descriptions,
product line, materials, colors, and sizes.
Sellers can use the Amazon Keyword Tool to find popular long-tailed title
keywords, and find the keywords that are right for you among these keywords,
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and then enter them into Google’s Keyword Planner Tool to evaluate the search
volume of these keywords.
Besides the product title, Amazon has other keyword fields. You can enter five
keywords or phrases into the fields. Remember, do not use keywords that
already appear in the title.
Inventory, logistics, customer service, and prices are important factors to win
Buy Box. Repricing tools such as FeedVisor or teikametrics can help you
monitor competitors ‘prices 24 hours a day. For example, you can set your price
$0.01 lower than that of your competitors and keep your price competitive at all
times. If your competitors are out of stock, these tools automatically raise prices
to maximize your profits.
If you want to make your product attractive, try Amazon sponsored product
service, which gets your product listed in the search results, in the right column
of the page, or on the product details page. Amazon announced that it plans to
enhance this feature to make ads more visible. More important, it offers a free
trial.
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5, Attract consumers with discounts
Although Amazon does not allow email or other means that lead consumers to
links to other sites, you can instead direct consumers to your Amazon store from
other sites. Articles and blogs are great ways to achieve the goal. Write some
articles about your products on websites such as Hubpages, Go Articles and
Isnare and links back to your store.
Leaving coupons with your packing list is also an effective way to keep
customers. Lightning deal, one-time promotions and free delivery are all
effective ways to attract consumers to place orders again.
Now, let’s look at a real case together! ToiletTree is an Amazon seller in New
Jersey, USA.
They put a lot of effort into building their websites and get huge traffic from
Google through SEO optimization and keyword advertising.
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At the same time, they make great efforts to integrate their online store with
social platforms like Facebook and Amazon.
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Facebook Page:
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As you can see from this actual case, the net profit of this product of ToiletTree
is at least $10. At such a high price, It can manage to rank first in the sub-
category of Amazon and top 50 in the category. That’s where American sellers
stand out!
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Conclusion
The study consisted with ail the workflows of major e-commerce palyes in India,
Amazon. Hew-they are performing and how they are running perfectly in the
competitive world has been explained. The innovative thinking of them to reach
more and more consumers is appreciable. The increased their network as much
as possible with ultimate aim of reaching more and more customers. They made
consumers work more easy and comfortable, In this competitive market one has
tp; be lead; and rest will follow, Based upon consumer's survey we got our clear
winner and it is Amazon. Even though it is an international company it
understood Indians very well and made its roots stronger in India, Amazon is also
giving very tough competition to Flipkart even though it is new company when
compared to Amazon. May be it takes some time to overcome, but definitely
they are doing very well in Indian e-commerce market.
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Limitations
The initiative combines three tools: automated protections, a self-service
counterfeit removal tool, and product serialization codes as an attempt to
drive down the number of counterfeit goods available on its marketplace.
Previous efforts by Amazon to stop the flood of fake goods, such as the
‘Brand Registry’2 program launched in 2017, have proven to be
ineffective for many brands, with some going as far to say that they
merely pay lip service to the problem. Although Project Zero in theory is
a good sign of progress, there are constraints to Amazon’s approach
and questions remain surrounding where accountability should lie.
Below are the six key limitations that we have identified to the initiative in
its current form.
Self-service removal data also feeds into the automated protection tool
and will likely require significant enforcement input from the brand to
ensure Amazon gets takedowns right.
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brand owners to manage other third-party seller activity, even if that
activity is unlawful.
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BIBLOGRAPHY
References Textbooks
Marketing Management by Philip Kotler, Kevin Lane Keller, Abraham Koshy and
Raithileshwar Jha.
Journals and Papers
"Prospects of e-commerc in India" by Sharma and Mittal (2009)
"Finding the Source of Amazon.com; examining the hype of the earth's biggest
book, store" by Martin Dodge. (1999).
Web Address:
http://www.google.com
http://www.wikepedia.com
http://www.amazon.in
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