E- Commerce – A STUDY ON THE IMPACT OF ONLINE RETAILING ON

THE SECTOR A CASE ON FLIPKART.

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TABLE OF CONTENTS

CHAPTER 1 –

INTRODUCTION

 Introducing the topic

 Need of the study
 Literature review
 Objective of the study
 Limitation of the study
 Research Methodology

CHAPTER 2 –
CONCEPTUAL FRAMEWORK (National and International Scenario)

 Definition
 Features Advantages and Disadvantages
 Brief Introduction of Flipkart

CHAPTER 3 –

 DATA ANALYSIS AND FINDING

CHAPTER 4 –
 CONCLUSIONS AND RECOMMENDATIONS

BIBLIOGRAPHY (OR REFERENCES)

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 CHAPTER 1
INTRODUCTION
INTRODUCING THE TOPIC –

1. E-COMMERCE
Although the terms e-commerce and e-business are often used
interchangeably, there are differences. E-commerce is the buying and
selling of goods and services on the Internet or other computer
network. Any brick and mortar store can become an e-commerce
business by adding a virtual storefront with an online catalogue. In most
cases, e-business refers exclusively to Internet businesses, but it may
also refer to any business that uses Internet technology to improve
productivity and profitability.

2. E-BUSINESS
Business transactions that involve the exchange of money are covered
by the term e-commerce. E-business includes all aspects of running a
business that sells goods and services, including marketing, earning and
retaining customers, procurement, developing business partners and
customer education. In order to be successful, e-commerce and e-
businesses must have quality storefronts that are simple to navigate and
peruse, with accurate and thorough catalogue information. E-business
became an extension of e-commerce to encompass all aspects of
businesses that function online. E-business involves e-commerce, but e-
Commerce does not cover all aspects of e-business.
3. BUSINESS MODELS E-Commerce or Electronics Commerce business
models can generally be categorized in the following categories:-

 Business - to - Business (B2B)

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  Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)

Business - to - Business (B2B)

Website following B2B business model sells its product to an intermediate buyer
who then sells the product to the final customer. As an example, a wholesaler
places an order from a company's website and after receiving the consignment,
sells the end product to final customer who comes to buy the product at
wholesaler's retail outlet.

Business - to - Consumer(B2C)

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Website following B2C business model sells its product directly to a customer. A
customer can view products shown on the website of business organization. The
customer can choose a product and order the same. Website will send a notification
to the business organization via email and organization will dispatch the
product/goods to the customer.

Consumer - to - Consumer (C2C)

Website following C2C business model helps consumer to sell their assets like
residential property, cars, motorcycles etc. or rent a room by publishing their
information on the website. Website may or may not charge the consumer for its
services. Another consumer may opt to buy the product of the first customer by
viewing the post/advertisement on the website.

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Consumer - to - Business (C2B)
In this model, a consumer approaches website showing multiple business
organizations for a particular service. Consumer places an estimate of amount
he/she wants to spend for a particular service. For example, comparison of interest
rates of personal loan/ car loan provided by various banks via website. Business
organization who fulfills the consumer's requirement within specified budget
approaches the customer and provides its services.

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Business - to - Government (B2G)
B2G model is a variant of B2B model. Such websites are used by government to
trade and exchange information with various business organizations. Such websites
are accredited by the government and provide a medium to businesses to submit
application forms to the government.

Government - to - Business (G2B)

Government uses B2G model website to approach business organizations. Such
websites support auctions, tenders and application submission functionalities.

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Government - to - Citizen (G2C)
Government uses G2C model website to approach citizen in general. Such
websites support auctions of vehicles, machinery or any other material. Such
website also provides services like registration for birth, marriage or death
certificates. Main objectives of G2C website are to reduce average time for
fulfilling people requests for various government services.

NEED OF THE STUDY (E-COMMERCE)

1. Exploitation of New Business

Broadly speaking, electronic commerce emphasizes the generation and exploitation

of new .business opportunities and to use popular phrases: “generate business
value” or “do more with less”.

2. Enabling the Customers

Electronic Commerce is enabling the customer to have an increasing say in what

products are made, how products are made and how services are delivered
(movement from a slow order fulfillment process with little understanding of what
is taking place inside the firm, to a faster and rt1ore open process with customers
having greater control.

3. Improvement of Business Transaction

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Electronic Commerce endeavors to improve the execution of business transaction
over various networks.

4. Effective Performance

It leads to more effective performance i.e. better quality, greater customer

satisfaction and better corporate decision making.

5. Greater Economic Efficiency

We may achieve greater economic efficiency (lower cost) and more rapid
exchange (high speed, accelerated, or real-time interaction) with the help of
electronic commerce.

6. Execution of Information

It enables the execution of information-laden transactions between two or more

parties using inter connected networks. These networks can be a combination of
‘plain old telephone system’ (POTS), Cable TV, leased lines and wireless.
Information based transactions are creating new ways of doing business and even
new types of business.

7. Incorporating Transaction

Electronic Commerce also inco11'orates transaction management, which organizes,

routes, processes and tracks transactions. It also includes consumers making
electronic payments and funds transfers.

8. Increasing of Revenue

Firm use technology to either lower operating costs or increase revenue. Electronic
Commerce has the Potential to increase revenue by creating new markets for old
products, creating new information-based products, and establishing new service
delivery channels to better serve and interact with customers. The transaction
management aspect of electronic commerce can also enable firms to reduce
operating costs by enabling better coordination in the sales, production and
distribution processes and to consolidate operations arid reduce overhead.

9. Reduction of Friction

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Electronic Commerce research and its associated implementations is to reduce the
“friction” in on line transactions frictions is often described in economics as
transaction cost. It can arise from inefficient market structures and inefficient
combinations of the technological activities required to make a transaction.
Ultimately, the reduction of friction in online commerce will enable smoother
transaction between buyers, intermediaries and sellers.

10. Facilitating of Network Form

Electronic Commerce is also impacting business .to business interactions. It

facilitates the network form of organization where small flexible firms rely on
other partner, companies for component supplies and product distribution to meet
changing customer demand more effectively. Hence, an end to end relationship
management solution is a desirable goal that is needed to manage the chain of
networks linking customers, workers, suppliers, distributors and even competitors.
The management of "online transactions" in the supply chain assumes a central
roll.

11. Facilitating for Organizational Model

It is facilitating an organizational model that is fundamentally different from the

past. It is a control organization to the information based organization. The
emerging forms of techno-organizational structure involve changes in managerial
responsibilities, communication and information flows and work group structures

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Rise of E-Commerce-

What is E-Commerce ? Electronic commerce, commonly known as E-commerce or

eCommerce, is trading in products or services using computer networks, such as
the Internet. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI),
inventory management systems, and automated data collection systems.

Modern electronic commerce typically uses the World Wide Web for at least one
part of the transaction's life cycle, although it may also use other technologies such
as e-mail. E-commerce businesses may employ some or all of the following: 
Online shopping web sites for retail sales direct to consumers  Providing or
participating in online marketplaces, which process third-party business-to-
consumer or consumer-to-consumer sales  Business-to-business buying and
selling  Gathering and using demographic data through web contacts and social
media  Business-to-business electronic data interchange  Marketing to
prospective and established customers by e-mail or fax (for example, with
newsletters)  Engaging in pretail for launching new products and services
According to an Associated Chambers of Commerce and Industry of India
(ASSOCHAM) survey, the online retail market in India may grow to Rs.70 billion
(over $1.30 billion) by 2015 from Rs.20 billion in 2011 as internet access improves

India has always been a land of great potential. The socioeconomic condition of
the country has improved many folds after independence and India is now
emerging as one of the leading countries in the world. Moreover with a population
of over 100 crore and a growth rate of above 6%, it can be compared to a
marketing giant.

Hence it can be well judged why online shopping in India is rising at fast pace over
the days. As technology is spreading to the remotest villages and many job
opportunities are presenting themselves to the unemployed youth more and more

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people are gaining awareness and the money to purchase expensive and luxurious
items over the internet. Online Shopping Which company flashes in your mind
first? Flipkart, Amazon, eBay etc. Well, let us talk about the home-grown, Indian,
e-commerce site ‘Flipkart’, also considered as the Amazon of India

A Company which started with just 4 lakhs is now worth over more than 2000
crores According to the data Flipkart has provided to Ministry of Corporate
Affairs; the company’s revenue in 2011–12 was $77 million (Rs. 500 crore). For
the fiscal 2012–13, their revenue is estimated to be $350 million. With this huge
success flipkart is becoming the fate of online retail in India. This paper attempts to
throw light on the growth of online retail business in India with special reference to
flipkart (analyzing the consumer feedback about the online business model of
flipkart) The invention has opened a whole new world of possibilities for us. Not
only we can communicate with the person we love within moments but nowadays
many vital tasks like jobs, shopping, socializing and many others can be done
easily at the convenience of our homes.

The concept of online shopping is a relatively new one and it enables us to buy all
our favourite goods and accessories over the internet. This not only saves time but
also we can get the products at a much discounted price and that too at our homes.
There are many online stores that have developed in recent times like letsshop.in,
flipcart.com and many others. These stores host a wide range of products like bags,
shoes, books, gadgets and many others. To purchase any product you have to visit
the site and click on the product that you would like to purchase and the product
will be delivered to you within a week maximum. It’s that simple.

“In online buying, the rate of diffusion and adoption of the online buying amongst
consumers is still relatively low in India. In view of above problem an empirical
study of online buying behaviour was undertaken. Base on literature review, four
predominant psychographic parameters namely, attitude, motivation, personality
and trust were studied with respect to online buying.

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The online buying decision process models based on all the four parameters were
designed after statistical analysis. These models were integrated with business
intelligence, knowledge management and data mining to design Behavioural
Business Intelligence framework with a cohesive view of online buyer behaviour.
For better understanding the factors of internet and consumer shopping behaviour
towards internet shopping, this chapter would provide academic research reviews
and relative ideas expressed in the literature that associated with this subject.
Furthermore, a number of hypotheses will be tested to answer the research
questions that mentioned already in the introduction.

Due to the recent research shows the internet shopping becomes a full and
effective business model, therefore there are several studies that already
investigated more or less related on internet shopping and consumer behaviour. In
the following chapter, some point of view will be taken from literatures, and needs
careful review to achieve them as the basis of the subsequent research
investigation.” -Archana Shrivastava & Ujwal Lanjewar (2011) Advantages of
Online Shopping

1) Saves time: Online shopping saves us a huge amount of time. We can buy any
of our favourite products from our home only and need not visit the malls.

2) Cost Effective: The products can be bought at a much discounted rate by

shopping online. This is because online stores offer huge discounts and lucrative
offers on the purchase of each and every product. This is done to attract more
customers from all over the world.

3) Other Facilities: The products are freely shipped and delivered at our doorstep
without any extra charge. Moreover if we find them not suited to our purpose we
can return them without purchasing any time. Apart from that if we do purchase
these items find them to be defective then we can return them within fourteen days
of the purchase and we will get all the money back.

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4) Shop any store worldwide: Never again be limited geographically. Many
merchants do not have physical stores in every state, and certainly not in every
country. When you shop online, you can browse through stores around the block or
around the globe! Discover amazing new items from exotic places that you perhaps
have never even heard of before.

5) Ship your gifts directly: When you order online, you can send gifts or even have
gift baskets delivered directly to their recipient. This means you can avoid long
waits at the post office and you can get your gift delivered faster. Many stores even
offer customized cards and gift wrapping to go along with your present.

6) Find items you might not see in stores: Since brick and mortar stores are limited
on space, merchants usually don’t carry all of the items they sell in store. Online,
you can find their entire inventory, along with many choices of colors, styles, and
even customization options. Shop on the Internet so you can find exactly what you
want.

7) No more waiting in line and pushing through crowds: Malls and retail stores can
be chaotic, especially during a big sale or a holiday season. Don’t stress yourself
out, just shop from home! You’ll never have to stand in a long checkout line or
weave your way through crowds just to get the items you want. Shop online and
you can stay in the comfort of your own home

8) The Internet never closes: You can shop anytime online 24 hours a day 7 days a
week. Online stores never close, so you never have to worry about making time to
go to the store. Online shopping is perfect for night owls or anyone who is just too
busy to make a trip to the store. The act of buying things from websites and not
shops certainly took a long time to blend in with the shopping mind-set of the
Indian customer. The current scenario is one, which is witnessing a change in this

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mind-set. There have been many websites that have been launched with the
objective of selling products to customers.

Products belonging to various product sectors are now being sold on these websites
and the range is quite a large one right from expensive laptops and LCD televisions
to mundane grocery items. The frequency of B2C transactions has certainly
increased over time in the Indian subcontinent. There are many shopping websites,
which are now witnessing a decisive surge in traffic (this statement is being made
while keeping in view the performance of shopping websites in the last five years).

With an increase in the number of persons visiting these websites, they have also
become ideal platforms for advertisements and banners of different brands. Online
shopping in India, is certainly witnessing a period, which entails things such as
rising number of online sales and fantastic revenue and profit figures.

There have been many products, which have caught the fancy of online shoppers
and one of them is a handset. Handsets, irrespective of the brand, are being sold in
magnanimous numbers on different websites. All the major market players in the
telecommunications sector, FMCG sector, services, mobile sector etc. are doing
quite well with the sales that they are getting from this online platform.

The money that is earned is being put to good use by using it in the betterment of
the respective R&D departments. Apart, from the businesses doing well, the
customers are also given many fantastic features. Some of them include things
such as free gifts with every online purchase while some involve special offers that
are quite economical and affordable.

Growth of online retailing in India India e-commerce has grown at a compounded

annual growth rate of 30% since FY09, and is expected to be $18 billion (around
Rs 1,116,00crore) opportunity by FY15. The findings part of report: Indian
Ecommerce-Tip of the Iceberg, by Macquire Equities Research back this high
growth rate on rising internet population, over 300 million middle class population,
increasing mobile penetration and low levels of e-commerce activity.

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 “Compared to the west, India’s ecommerce industry is still in its infancy. E-
commerce contributes only 0.6% of the country’s GDP vs 1-3% for other
countries, with only 12% of India’s online population transacting online vs 64%
for the US and over 50% for China,” said AtulSoni and NitinMohta in the report.
This growth will further be accentuated by companies going in for public listing. In
the Indian context, only two internet-based companies are listed on the markets,
including Infoedge, which runs India’s largest job portal (naukri.com), and justdial,
which is India’s largest local search site. The nature of Indian e-commerce is also
different. Travel has the lion’s share of 71% of Indian e-commerce, but e-tailing
has grown the fastest, at a 59% CAGR between FY09-13E, to reach 16% market
share.

Compared to the west, India’s ecommerce industry is still in its infancy, but we
believe that it may become a bigger part of the entire retail universe than in the
west. “We believe that for many young Indians, Online shopping may become
their primary way to shop throughout their lives. Whenever significant
opportunities such as e- commerce present themselves, many market participants
compete aggressively to try to emerge as undisputed leaders to gain brand
recognition and customer loyalty, and oftentimes these players change their
business model along the way to grow with the market,” said the report.

METHODOLOGY Research Design

The type of design being used for making this project is Meta-Analysis Design.
Meta-analysis is an analytical methodology designed to systematically evaluate
and summarize the results from a number of individual studies, thereby, increasing
the overall sample size and the ability of the researcher to study effects of interest.

Statement of the Problem The study is being conducted for Online Shopping in
Kankurgachi Area of Kolkata City only, to find out the customer preferences in
choosing Flipkart. It is required to find out the preferences based on certain aspects
(Income, levels selection of products, satisfaction level of customers). Objectives 

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To study the growth of online retail business in India.  To explore the online
business of model of Flipkart.  To analyse the Customer Feedback of Flipkart
over other available online retail stores in India.  To find out the mode by which
the customer became aware of Flipkart  To reveal the satisfaction level of the
consumer

Nowadays retail stores are facing more competition in retailing business. Good
store design increase the visiting of more customers in to the store and increase the
store goodwill, and price also plays major factor to use the customer giving
preference and selection of the store.

And as industry research has shown, there is much need to know the customer
expectations, customer preferences and their store choice’s(features) and we will
find out solutions for designing effective store which will getting more customers
and getting more profits.

Scope of the Study

 Finding out the strengths and weaknesses of Flipkart

 Finding the number of future purchases

 Finding the customer satisfaction and their means of awareness of Flipkart

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 Finding the perception among the competitors

 Finding out the perception of the customers about Flipkart Data Collection
Method

 Primary Data Primary data was collected through the survey method
(questionnaire observation and interview) from the respondents. Observations
regarding the rise of online shopping trends. The questionnaire aimed at studying
the customers preference and feedback for

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 The online shopping sites flipkart. Unstructured interview was conducted for some
of the respondents to find out the drawbacks of the online model of flipkart

 Secondary Data Secondary data was collected thorough various websites and
articles available on the internet. Sampling Size Sample size: For the research the
sample size of:-

 100 respondents were taken out of which 80% of the population are frequent
users of online shopping.

 The geographical area is limited within an area of Kankurgachi, Kolkata.

Sampling Procedure To obtain the representative sample, a non-probability sample
can be drawn. In this study the method of selecting samples is Convenience
sampling. Tools The tools used for analyzing data are rating method; graphs, pie
charts etc.

Questionnaire is distributed to the individual respondents and special care has been
taken to make him/her feel comfortable so that, he/she could answer all the
questions. This method is followed to get unbiased answers.

The data collected from the customer are transcripted to the worksheet in the form
of tally bars and analyzed by statistical tools by drawing tables and graphs,
inferences were drawn on a marketing concept and conversation. Based on the
marketing concepts findings of the research were driven and recommendations are
made. Limitation of the Study It is not possible for any market study to make it
accurate due to many hurdles in the collection and computation of data. Some
limitations of the study are listed below

 The sampling frame to conduct the study has been restricted to area near
Kankurgachi, Kolkata.

 Respondents show reluctance towards giving correct information.

 Findings of the study are based on the assumption that respondents have
disclosed in the questionnaire.

 Time was a major constraint.

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Conceptual Framework/ National and International Scenario Flipkart Success
Story When they were starting out, Sachin Bansal and Binny Bansal would get on
a motorbike to make the rounds of book warehouses across Bangalore, ride back to
their two-bedroom apartment and package orders for online customers.

It was a humble beginning for two former software developers for Amazon.com
who set out in 2007 to beat their one-time employer at its own game long before
Amazon entered India. The firm's success mantra: employing technology for
speedy and accurate delivery to customers. Sachin and Binny Bansal co-founded
the e-commerce site in 2007 after resigning from their jobs at Amazon India. With
Rs. 4 lakh in seed capital and just the two of them as employees, they were
pouncing on a demand-supply gap in online bookselling.

The duo initially did everything, from programming, forging supplier relationships
and book procurement to logistics, packing and shipping. “It was a minimal start
and a case of figuring out things as they came,” Sachin recalls. “We started earning
customer goodwill, and what followed was phenomenal word-of-mouth publicity.
We became profitable in six months.” In 2007, Flipkart started by offering 50,000
titles. Today, it offers four million. It has 500,000 registered users, and has sold
750,000 books so far. Half the buyers have returned to buy a second book.

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There are websites that offer better discounts, but Flipkart plans to focus on
expanding logistics and adding value. “For now, we are not joining the pricing
game. The discounts and free shipping are possible because of our sales volumes,
and low expenses on overheads like rent — all of which we are passing on to the
customer.

” The cash-on delivery (COD) scheme for those who hesitate to pay online owing
to security fears now brings in 30 per cent of the revenue. Flipkart also continually
tweaks its website, for that is where customer satisfaction first meets the
technology. A preview of select pages from books will soon be up. Users have
been demanding a loyalty scheme, and that too is being worked out. A better
search engine, a simpler payment mechanism…the wish list stretches. When you
browse the website, add items to the shopping cart, and confirm your order, you
trigger Flipkart's automated communication system.

It reads your postal address code and routes the purchase order to one of the
company's four warehouses — in Mumbai, Delhi, Kolkata and Bangalore. If the
book is not in stock, the nearest supplier is automatically queried. When the book
is available, it is packed and picked up by a courier company within four to 24
hours. The book arrives at your address within one to three days.

According to Sachin, the company is “aiming at 24-hour delivery of most books

because that's what the customer seeks. In the future, a customer can order a book
in the morning and get it by evening.” Regional Market The company is also busy
switching to selling music, movies, mobile phones and game, besides books.

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Flipkart is also deepening its presence in book selling by targeting the regional
language book market, which has largely been untapped. “More books are read in
regional languages. It is tough to get a book supplier on board, but once that is in
place, this business will further explode,” says Sachin. Things are easier said than
done! To realize our dreams and that also in such a grand manner is really a tough
task. The founders of Flipkart have probably conquered their dreams with the
amazing success of Flipkart.

Flipkart is something which has really opened up the Indian e-commerce market
and that also in a big way. Flipkart began with selling books, since books are easy
to procure, target market which reads books is in abundance, books provide more
margin, are easy to pack and deliver, do not get damaged in transit and most
importantly books are not very expensive, the amount of money a customer has to
spend to try out one's service for one time is very minimal.

Flipkart sold only books for the first two years. Flipkart started with the
consignment model (procurement based on demand) i.e. they had ties with 2
distributors in Bangalore, whenever a customer ordered a book, they used to
personally procure the book from the dealer, pack the book in their office and then
courier the same. In the initial months the founder's personal cell numbers used to
be the customer support numbers. So, in the start they tried their best to provide
good service, focus on the website - easy to browse and order and hassle-free, and
strove hard to resolve any customer issues. Since there were not any established
players in the market, this allowed them a lot of space to grow, and they did in fact
grew very rapidly.

The company started from 2 employees and now has around 4500 employees.
Flipkart started with consignment model as discussed above, since most of the
customer issues like delivery delays etc. result from procurement model, the
company started opening its own warehouses as it started getting more
investments.

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The company opened its first warehouse in Bangalore and later on opened
warehouses in Delhi, Kolkata and Mumbai. Today the company works with more
than500 suppliers. As on date more than 80% orders of Flipkart are handled via
warehouses which helps in quick and efficient service.

A humble beginning from books, Flipkart now has a gamut of products ranging
from: Cell phones, laptops, computers, cameras, games, music, audio players,
TV's, healthcare products, washing machines etc. etc. Still, Flipkart derives around
50% of its revenue from selling books online. Flipkart is the Indian market leader
in selling books both offline and online, it enjoys an online share of around 80%.
The electronic items have a large number of players like Naaptol, Letsbuy,
Indiaplaza, Tradus, Infibeam, Yebhi etc.

The electronic market share is distributed among them in different unknown

proportions. India has around 13.5 crore internet users today where as the number
of homes with Cable and Satellite (C&S) television is 10.5 crore. The expected
internet users will reach a figure of 30 crore by 2014 and C&S homes are expected
to be 14 crore by 2014. Thus India has a tremendous internet growth and with the
customers getting accustomed to e-

the future of e-commerce sector is definitely rosy. An approximated 25 lac people

have transacted online this year, the number is all set to increase with time. Also to
mention most of the Flipkart customers use internet from PC's/Laptops to order
goods. The use of mobile internet is very less at the moment, but with the advent of
smart phones the use of mobile internet for e-commerce transactions will soar with
time.

India has 8 crore mobile net users at the moment, the number is expected to swell
to 22.5 crore by 2014. Factors that lead to the grand success of Flipkart

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 1) They always strove to provide great customer service. Flipkart customers are
happier than with some of their competitors like Tradus.in, Indiaplaza.com; I have
myself experienced this couple of times.

2) Their website is great, easy to use, easy to browse through the products, add
products to wish list or to a cart, get product reviews and opinions, pre-order
products, make payments using different methods, in short hassle- free and
convenient.

3) A very important point is that they introduced the option of cash on delivery and
card on delivery, this way people demonstrated more confidence in buying
products. An interesting is that fact, today Flipkart sells 20 products/min and has a
massive customer base, still more than 60% of the Flipkart's customers use Cash
on Delivery and card on delivery methods.

This is because of two reasons, one is many people do not know how to make
payments online. And secondly people do not have immense trust in e-commerce
in India. Flipkart also provides a 30 day replacement guarantee on its products and
EMI options to its customers for making payments.

4) Flipkart's reason of success is that it has a great customer retention rate, it has
around 15 lac individual customers and more than 70% customers are repeat
customers i.e. they shop various times each year. The company targets to have a
customer base of 1 crore by 2015.

Flipkart Marketing Strategy Flipkart has been mostly marketed by word of mouth
advertising. Customer satisfaction has been their best marketing medium. Flipkart
very wisely used SEO (Search Engine Optimization) and Google Ad-words as the
marketing tools to have a far reach in the online world. Flipkart.com official
Facebook page has close to 9 lac 'likes'.

Flipkart recently launched a series of 3 ads with the tag line - "No Kidding No
worries". Kids were used to create the adverts to send out the message - if a kid can
do it, you can also do it. The message is very clear to make people more

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comfortable with Flipkart, to generate a great customer relationship and loyalty on
the basis of great product prices and excellent customer service. All in all to create
a great customer experience. Future Road Map Going forward electronics will be
given more focus. Flipkart has recently added a string of electronic items like
calculators, water purifiers, microwave ovens, washing machines, dish washers,
vacuum cleaners etc.

Flipkart has opened a music store which sells CD's and DVD's of movies' music
releases and music albums. Flipkart has also acquired Bollywood movie content
from Chakpak. Since digital media in going to rise in near future, Flipkart is geared
up for the same. Soon it will start offering digital content like movies and songs
online, as in the customers can pay and stream online digital content. Flipkart will
also provide e-books very soon.

Data &Analysis

On the basis of the answers received from the annexed questionnaire the following
analysis has been made. Age Group and Gender of the number of customers who

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were taken as samples for the sample study. By analysing the same we could
conclude the following:-

 65% of the samples belonged to the age group of 16-24 years, which contained
35% male samples and 30% female samples.

 20% of the samples belonged to the age group of 25-34 years, which contained
12% male samples and 8% female samples.

 14% of the samples belonged to the age group of 35-49 years, which contained
9% male samples and 5% female samples.

 1% of the samples belonged to the age group of 50+ years, which contained 1%
male samples and 0% female samples. 0% 5% 10% 15% 20% 25% 30% 35% Age
16-24 Age 25-34 Age 35-49 Age 50+ 35% 12% 9% 1% 30% 8% 5% 0% Male
Female

the occupation of customers who were taken as samples for the sample study. By
analysing the same we could conclude the following:-  5% of samples were
Professionals  24% of samples were Self Employed  26% of samples were from
Service Sector  35% of samples were students  10% of samples were others 0%
5% 10% 15% 20% 25% 30% 35% 5% 24% 26% 35% 10% Customer's Occupation
Customer's Occupation

Recommendations

1) As still in India large segment of population is untapped regarding the online

shopping the available online shopping stores can widen their market by getting
into expansion strategies

2) There is also need to remove the fear in the minds the customers regarding the
product quality, durability and payments etc. in online shopping

3) Wide expansion of internet facilities in rural areas can bring the more
customers for the online shopping sites

4) Through prompt service, wide variety and easy accessibility even consumers
from the remote areas can be tapped
5) As Indian consumers are much more cautious about shopping online as

26
compared to the West. They are reluctant to divulge credit card details. The cash
on delivery service has will help a lot of traditional consumers turn to online
shopping

6) India’s e-commerce companies have far too often concentrated on the bells and
whistles instead of focusing on deploying and customizing technology to serve
customer needs, so their need more customer centric approach.

7) Calling facility to make an order and change an order as well as, Urgent delivery
with no extra cost service can add a cherry on the cake and would help flipkart to
perform even better than its competitors

27
Conclusion

Online shopping is the new mantra of this age and the people of India are applying
this in their lives to a great extent nowadays. As we progress further, the growth
rate of online marketing in our country will leap to the stars. According to a
research report — State of e-commerce in India by Commerce for ASSOCHAM,
“India’s Internet base, is already the third highest in the world after China and the
US, is growing by nearly 40% every year”.

Hence, the rise of online shopping in the Indian subcontinent has been meteoric in
the recent years. The number of shopping websites has increased and so has the
total number of persons who prefer shopping online At the end it can be said that
Flipkart has become the fate of online business in India. The company is currently
valued at around 1 billion dollars i.e. 5000 crore.

More importantly Flipkart has ushered in the e-commerce era in India. This has
generated massive interest in e-commerce sector; people are opening websites to
sell anything from shoes to apparels to jewels to baby care products etc. This has
helped in creating a lot of job opportunities and thus helps the Indian Inc. growth
story as well.

28
LITERATURE REVIEW

Several researchers have carried out studies in their effort to examine consumers
‘online buying behavior. For example, Bellman et al (1999) investigated various
predictors for whether an individual will purchase online. These authors concluded
that demographic variables, such as income, education and age, have a modest
impact on the decision of whether to buy online, whereas the most important
determinant of online shopping was previous behavior, such as earlier online
purchases. This is consistent with Forrester Research which proved that
demographic factors do not have such a high influence on technology as the
consumers ‘attitudes do (Modal, 2000). Stein field and Whitten (1999) suggested
that the combination of the Internet, plus physical presence, provides more
opportunities to capture business than the online-only presence, because they can
provide better pre-purchase and post-sales services to lower consumer transaction
cost and build trust in online stores. However, it is worth mentioning that beliefs
and attitudes that are found in the stage prior to the adoption of e-commerce are
different to those in the ―post-adoption‖ stage (Geffen et al, 2003; Venkatesh and
Brown, 2001; Yu et al, 2005.

29
OBJECTIVE OF STUDY
 To find the factors that leads a website user to return to or recommend the
website Flipkart.com

 To discover the key factors that influence online buying behaviour of

consumers in India

 To identify who are the online shoppers in terms of demography

 To understand the customer awareness on Flipkart.com

 To determine the factors responsible for customer satisfaction

30
LIMITATIONS OF THE STUDY
No research is complete without admitting the limitations that was faced while
conducting a study which will contribute to present learning. This study too like
the others have certain constrains which has been discussed below.
 The study was restricted to DELHI city only

 The study is mainly concentrated on Flipkart.com

 The sample of the size will be limited to time and resources

 The information will be collected valid until there is no any technical change
or any innovation

 The result is assuming that respondents have given accurate information

31
RESEARCH METHODOLOGY

AREA OF STUDY –

B2C Model of E-Commerce taking the example of www.flipkart.com which is our

case study of this project pertaining to one of the models (B2C) of E-Commerce
and the main crux of this study will be to see how www.flipkart.com has utilized
the B2C Model to revolutionize E-Commerce in India.

The Organization, which I have selected for my Study, is “Flipkart.com” an

Emerging Indian online mega store.

I would be studying the strategies that the portal have used to attract Indian
masses, so as to give them the total online shopping experience, the portal offers
an unique strategy towards the masses to make payment modes like Cash & Card
on delivery, which invariably helps the masses to avoid the hassle of making
32
online payments, as the credit card penetration in India is very low, &people are
reluctant to make online payments more to do with the Indians psyche.

Since portals are giving a customized offering to the masses i.e rite from the wider
product portfolio to payment options, its making very convenient for the users to
have a online shopping experience hassle free.

Flipkart has followed the same business model as of Amazon.com, i.e starting
from selling books therefore we can call it as “ Flipkart - The Amazon of India “,
however Flipkart is now Regional based E-business portal i.e only targeting Indian
Market. More Interesting is that, the minds that worked to start Flipkart are also
the Ex. Amazon Employees.

Flipkart.com is an Indian based e-commerce company started by Binny Bansal and

Sachin Bansal, who previously worked at Amazon.com. Post their experience,
they ventured into a similar e-business idea and launched it in India.

Flipkart.com works with the aim of making products and goods easily available at
the doorsteps of anyone who has Internet access. Flipkart.com started off from
selling books in 2007, based in Bangalore, and entered then consumer electronics
category with the launch of mobile phones, in September 2010. Since then it kept
on adding more new products categories including books, mobiles, computers,
cameras, home & electronic gadgets& appliances.

In addition to these very Recently, Flipkart.com has also widened its foray by
entering into the emerging digital content market with the recent launch of Flyte,
the digital music store & is still continuing to enlarge its product portfolio. It is
now one of the leading e-commerce players in India, currently ranked no.1 online
shopping site in India, spread in 37 cities, with 11.5 million plus book titles, 14

33
different categories, 26 million plus registered users and sale of 100000 items
a day. It provides online shoppers a memorable online-shopping experience
because of its innovative services like:

• Cash on Delivery,

• 30-day replacement policy,

• Easy Monthly Instalment options (EMI),

• Free shipping

• Discounted prices & deals

TYPE OF STUDY –

34
 1. Flipkart’s revolutionary workings which has completely overhauled
purchase of products from physical presence in the market to the purchase
of products Online, utilising the B2C model of E-Commerce;
2. Analysis and Trends of change in the Market induced by Flipkart.

TOOLS FOR DATA COLLECTION:–

Using various survey reports conducted by Flipkart.com for the betterment of

Customer service.

METHOD OF ANALYSIS –
Comparison of situations using Graph Analysis and Percentage Analysis.

TABLES
Table 1:- Some household types and their affinity with b2c e-commerce.
Household type Affinity with b2c e-commerce

1. Young adults (< 30 Skilled, frequently using the Internet, eager to know new things but
years) with limited financial resources; not yet regular Internet shoppers,
but likely to be so in the future, especially when living in rural areas.
2. The elderly (> 60 Insufficient skills, sometimes with financial means and lacking
years) certain physical abilities, but not at all time-pressed; hence limited
involvement in b2c e-commerce, which may gradually change over
in the next two decades, especially when living in rural areas.
3. Time-pressed Highly skilled, double-income, time-pressured households with

35
families children and some affinity with new technologies; potential or
present
Internet shoppers, especially when living in rural areas.
4. ‘Active, on-the-go- Highly skilled, high-income, time-pressured professionals with a
lifestyles’ high affinity for new technologies; potential or present Internet
shoppers, especially when living in rural areas.

Table 2:-Transaction cost reductions due to e-commerce.

Consumers (buyers) Businesses (suppliers) Advantages of e-

commerce
Contact Search for product Look for selling Enhanced access to
alternatives, become aware alternatives, consider information implies
of needs and possibilities to manifest or potential better
fulfiII them, match needs of clients, and search, matching and
alternatives, determine their evaluation possibilities.
and evaluate outcomes. capacity to fulfiII Efforts to enhance
these needs. customer
loyalty may reduce this
advantage, however.
Contrac Negotiate the terms of a Shift of administrative
t transaction, draft a costs from sellers to
preliminary contract, buyers. Online
anticipate possible future planning systems reduce
problems, and propose costs at his stage.
changes in the contract.
Control Monitor the realization of More information
the transaction process, available
compare with contract through online control
details. Deviations lead to systems, e.g. tracking-
36
 haggling, adjustment of and tracing.
contracts, sanctions or In case of
third-party mediation. opportunistic behaviour,
e-commerce is not a
sufficient tool to handle
problems.
During Both parties invest time, More and better
the effort and money in (interactive)
entire preventing information facilitates
process misunderstandings, ongoing communication.
mistakes and
misspecifications,
incomplete fine-tuning
or applications.
Source: adapted from Nooteboom (1994), pp. 32–33.

CONCEPTUAL FRAMEWORK / NATIONAL AND

INTERNATIONAL SCENARIO
NATIONAL SCENARIO –

Flipkart has worked wonders in the field of E-Commerce, wholly revolutionising

the way Indians purchased products, that too directly from the conglomerates
themselves. This was brought about by a sound Finance System.

Initially, the founders had spent 4lakh to set up the business. Flipkart has later
raised funding from venture capital funds Accel India (US$1 million in 2009) and
Tiger Global (US$10 million in 2010 and US$20 million in June 2011). On 24
August 2012, Flipkart announced the completion of its 4th round of $150 million
funding from MIH (part of Naspers Group) and ICONIQ Capital.

37
The company announced, on 10 July 2013, that it has raised an additional $200
million from existing investors including Tiger Global, Naspers, Accel Partners and
Iconiq Capital.

Flipkart's reported sales were 40 million in FY 2008–2009, 200 million in FY

2009–2010and 750 million for FY 2010–2011. In FY 2011–2012, Flipkart is set to
cross the 5 billion (US$100 million) mark as Internet usage in the country
increases and people get accustomed to making purchases online.

Flipkart projects its sales to reach 10 billion by year 2014. On average, Flipkart
sells nearly 20 products per minute and is aiming at generating a revenue of
50,000 crore (US$.8 billion) by December 2015.

On November 2012, Flipkart became one of the companies being probed for
alleged violations of FDI regulations of the Foreign Exchange Management Act,
1999

In July 2013, Flipkart raised USD 160 million from private equity investors, taking
the total to USD 360 million in its recent fund raising drive to build and strengthen
technology and bolster its supply chain.

In October 2013, it was reported that Flipkart had raised an additional $160
million from new investors Dragoneer Investment Group, Morgan Stanley
Investment Management, Sofina SA and Vulcan Capital with participation from
existing investor Tiger Global.

With this, the company has raised a total $360 million in its fifth round of
funding, the largest investment raised by an Internet company in India, emulating
InMobi’s $200 million investment from Softbank in September 2011.

The company valued at approx. US$15.5 billion (May 2015), and plans to use the
capital raised to improve its technology and supply chain capabilities, enhance its
end user experience and for hiring.

38
India's e-commerce market was worth about $2.5 billion in 2009, it went up to
$6.3 billion in 2011 and to $14 billion in 2012. About 75% of this is travel related
(airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).
Online Retailing comprises about 12.5% ($300 Million as of 2009).

India has close to 10 million online shoppers and is growing at an estimated 30%
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the
biggest categories in terms of sales.

India's retail market is estimated at $470 billion in 2011 and is expected to grow
to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%. According to
Forrester, the e-commerce market in India is set to grow the fastest within the
Asia-Pacific Region at a CAGR of over 57% between 2012–16.

INTERNATIONAL SCENARIO –
Flipkart’s reach has not yet reached the International market so we cannot
comment on its International Scenario but the management has plans of
extending its business to the South East Asian region.

The Change from traditional commerce to E-

Commerce

For nearly 25 years, Dinesh Chopra lived with a locational handicap. Chopra sells
computer parts, electronic gadgets and accessories from his outlet in Nehru Place
— an assembly of several four-storey buildings. Although Asia's largest computer
market registers thousands of footfalls every day, only a fraction brave the filth
and dilapidation to climb up. "I'm on the first floor and that's my weakness," says
Chopra, director, Softek Surya. "I don't get regular walking customers."

But Chopra does not mind anymore. "Now, they land on my shop via online
marketplaces," he smiles. Softek is a registered seller on five online marketplaces,

39
including eBay and Flipkart. "About 35 per cent of my marketplace buyers are
from South India, who have never seen my shop," he says. His annual sales have
rocketed from Rs 14 crore in 2010-11 to Rs 60 crore now; and 70 per cent of it is
from online marketplaces, which are adding "muscle to business".

Chopra is a prime example of

online marketplaces — branded e-tailers who host sellers, and connect them to
buyers for a commission — empowering a small business to scale up.

An example of another kind of empowerment they are enabling is India Trend,

which is in business only because of online marketplaces. Seven years ago, Parul
Arora Mittal and her mother "tried their luck" by putting 20 pieces of jewellery on
eBay. All were sold in a week. Today, Mittal's small operation exports handmade,
alloy-metal jewellery, via eBay. "We never had the resources to set up a physical
store," says the 30-year-old. Now, she has no reason to. "Since then, I have never
even thought of a physical store. The online marketplace is my business place."
And their numbers are increasing.

40
 Amazon is the latest, launching its online marketplace in India in June. Globally,
the world's largest retailer earns 40 per cent of its 2012 revenues of $61 billion
(Rs 3,66,000 crore) by selling other people's goods.

Sensing the groundswell and business logic even Flipkart, India's largest online
retailer, started selling goods of other sellers — the online marketplace model
— along with its own goods. "It's the right time as we have now built the Flipkart
brand," says its co-founder & CEO Sachin Bansal, adding the online marketplace is
the "right model for India". Such moves by e-commerce players is opening up a
world of possibilities for small entrepreneurs like Chopra and Mittal.

The figure above clearly shows the meteoric rise of E-Commerce in Market
Capitalisation by Retail stores in the new Millenium.
It is all because of online shopping sites such as e-bay, FLIPKART, Amazon, etc.

41
This is a survey conducted to find out how E-Commerce has impacted businesses
in India. It clearly shows increase of an average of 70% in all the categories of
change, thus, emphasising on the fact of the Rise and Rise of E-Commerce, and its
Main Player, FLIPKART, in India.

42
 CAPITAL ANALYSIS AND FINDING

This chapter aims obtain the objective of the study by critically

analyzing the qualitative data through thoroughly examining the
interviewee‘s responses and beliefs.

This has been achieved through evaluating the most relevant responses
by the participants. The data
has been analysed and discussed by comparing the comments made by
the respondents with the literature review keeping in mind the research
objective of the study.

Thus, the rationale of this analysis is based on the personal answers

provided by the respondents. An appropriately desig
ned questionnaire was used to collect the primary data for the study. The
data for 100 respondents was organized systematically in tables and
graphs and then was subjected to analysis using appropriate statistical
tools.

The results of the analysis are presented in the following section in order
to assess the customer perception towards online shopping on
Flipkart.com in India.

Here for analyzing, we are considering two factors. That is:

 Demographical factors
 Behavioural factors

43
  Demography

1. Age Group:
Table: Age wise respondents

45&
15-25 25-35 35-45 above Total

No. of Respondents 63 24 12 1 100

Percentage 63 24 12 1 100

Graph: Age wise respondents

Age Group
1
12

15-25
24 25-35
35-45
45& above
63

44
Analysis and Interpretation:

Below figure shows that 63% respondents are between 15-25 years old,
24% respondents are between 25-35 years old, 12%respondents between
35-45 years old, and 1% respondents are between 45& above. Overall
result shows that between all of the respondents who has age between 15
to 35 years (63%+24%=87%) people are more familiar to shop online on
my target population.

2. Gender of Respondents
Table: Gender wise respondents

Male Female Total

Responses 58 42 100
Percentage 58 42 100

Graph: Gender wise respondents

45
 Gender

42
Male
Female

58

Analysis and Interpretation:

According to demography profile, in this study 58% male and 42% female
respondents are part of my target population and they help me to fulfil my
questionnaire from different area of Delhi city.

From these groups total respondents are 100. So, according to the survey result, the
male respondents are more and can be told that they interested to shop online than
female, even though both of them shop online.

46
 Occupation

Table: Occupation wise respondents

Business Housewif
person e Salaried Student Total
No. of Respondents 8 7 46 39 100
Percentage 8 7 46 39 100

Graph: Occupation wise respondents

Occupation
7
8
39

Business person
Housewife
Salaried
Student

46

47
Analysis and Interpretation:

In this survey, 46% of the respondents are salaried and 39% are students. So they
both together made majority of respondent‘s percentage (85%). 8% are business
persons and 7% are House wife. Salaried persons and students will always look for
new technologies and new services which make them more comfort.

4. Annual Income:

Table: Income wise respondent

9&
0-3L 3-6L 6-9L above
No. of Respondents 60 23 13 4
Percentage 60 23 13 4

Graph: Income wise respondents

Annual Income

13
4
0-3L
3-6L
6-9L
9& above
23
60

48
Analysis and Interpretation:
Since 39% of this survey is students most of them are of 0-3L
income range, ie 60%. 23% of them are in 3-6L income range, 13% in 6-
9L and 4% is 9 & above.

4. Educational Qualification

Table: Educational wise respondent

Graduat Post SSC or Others

e Graduate Equivalent (Phd)
No. of Respondents 63 36 0 1
Percentage 63 36 0 1

Graph: Educational wise respondent

Educational Qualification
1

36
Graduate
Post Graduate
SSC or Equivalent

Others (Phd)
63

49
Analysis and Interpretation:
All of them in this survey are graduate and above qualified
peoples only. Among these 63%are graduates, 36% are post
graduates and one person is PhD.

Behavioural factors:
6. Frequency of purchase from online
Table: online shopping usage

Always Often Sometimes Seldom Never Total

Male 5 21 29 3 0 58
Female 4 14 23 1 0 42
Total 9 35 52 4 0 100

Graph: online shopping usage

35

30 29

25 23
21
20
Male
15 14 Female

10
5
5 4
3
1
0 0
0
Always Often Sometimes Seldom Never

50
 Analysis and Interpretation: More than half of them use online shopping
sometimes, ie 52%. People who always and mostly shop through online shopping
are also good in number, 9 and 35, together 44%. And who use online shopping
rarely is very less in number 4%. Since only 44% are mostly using this, there is a
wide space to fill and to make online shopping a great success. And there is not
much gender difference in online shopping, which means both males and females
enjoying online shopping and its benefits.

7. This survey is conducted on those people who do online shopping and are
aware of Flipkart.
So everyone answered ‘YES’ for Question no.7.

8. Modes of awareness about Flipkart

Table: Modes of awareness about Flipkart

Links
Word Blog from
Advertisement Promotiona Search
of Recommendation other Total
s l Emails Engines
Mouth s Website
s
No. of
Respondent 39 22 2 15 5 17 100
s
Percentage 39 22 2 15 5 17 100

Graph: Modes of awareness about Flipkart

51
 No. of Respondents
39
40
30
22
20 15 17

10 5 No. of Respondents
2
0
th ts s
ite
s
ail
s
ne
s
ou en tion s m gi
M em a eb E En
of r tis end W nal
ch
d r o
or ve m he oti ar
W Ad c om ot m Se
Re m Pr
o
log s fro
B k
Lin

Analysis and Interpretation:

Most of them are aware about Flipkart through word of mouth (39%) followed by
television and online advertisements (22%). Customers got aware through blog
recommendations (2%) and promotional e-mails (5%) are very less in number.
This means a good communication about Flipkart is going on through friends and
families, which proves that word of mouth strategy by them is the most successful
means of making people aware about their products.

Success can only be gained through delighted customers who act as advocates for
their products and there is a wide scope of other digital advertisement techniques
like search engine marketing,
Email marketing, providing links and blog recommendations in order to make
more customers.

52
9. Frequency of Using Flipkart.com while online Purchasing:

Table: Frequency of Using

Every Hardly
Time Occasionally Most of the Time Ever Total
No. of Respondents 17 45 32 6 100
Percentage 17 45 32 6 100

Graph: Frequency of Using

No. of Respondents
50
45
45
40
35 32
30
No. of Respondents
25
20 17
15
10 6
5
0
Every Time Occasionally Most of the Hardly Ever
Time

Analysis and Interpretation:

Here on this survey 17% are always choosing Flipkart for online shopping, while
45% are using it occasionally. Hardly ever using members are very less, and 32%
are using it most of the time. Since more than half of them prefer Flipkart while
thinking of online shopping, it means branding had done successfully by them
either through advertisements, services or providing good experience to customers.

53
 10. Category that mostly prefer to buy from Flipkart.com

Table: Category mostly prefer to buy from Flipkart

Apparels
& Healthcare Home &
Electronic Accessorie Books,Movies Statinar & Personal Kitchen Tota
s s & Music y Care Items l
No. of
Respondents 39 20 30 3 4 4 100
Percentage 39 20 30 3 4 4 100

Graph: Category mostly prefer to buy from Flipkart

No. of Respondents
39
40
30
30
20
20
10 4 4 No. of Respondents
3
0

ni
cs ies us
ic ry re m
s
r o s or M tina l Ca Ite
ct ce
s & St
a na n
Ele Ac iv es r so tche
& o Pe Ki
els s ,M & e &
r ok re
pa Bo ca Ho
m
Ap elth
H

54
Analysis and Interpretation:

Electronic items, Books and Stationery, Apparels & Accessories, cameras, watches
and others (bags, belts, etc.) are purchased more. 39% of respondents are preferred
to buy Electronics items followed by Books and Stationery (30%) and Apparels
and Accessories (20%). Books & stationery and electronics items are more famous
among the students and that may be the reason for large purchase of those items
from Flipkart.com.

11. Reason for Customer’s preference on Flipkart.com than Others:

Table: Customers expecting feature of Flipkart

Easy
Fast After Sales Payment Portal
Deliver Availability Service Options Features Total
No. of
Respondents 41 29 8 17 5 100
Percentage 41 29 8 17 5 100

Graph: Customers expecting feature of Flipkart

55
 No. of Respondents
41
40
29
30
20 17
10 8
No. of Respondents
0 5

er y
liv ilit e
t De
lab r vic on
s
es
s i e
Fa va s S pti tur
A le tO ea
r Sa en alF
e m rt
Aft P ay Po
sy
Ea

Analysis and Interpretation:

One of the most efficient features in Flipkart is fast delivery when
compared to other online shopping websites. So, most of the customers
prefer this website for shopping with the perception of quick delivery
(41%) and availability of product (29%), followed by easy payment
options (17%). And there is a scope of increasing after sales services and
portal features when comparing with other features.

56
12. Product selection from the categories given by flipkart.com

Table: On the basis where product is chosen

Rating of the Discounts and Review About Brand of the
Product Features the Product Product Total
No. of Respondents 14 48 26 12 100
Percentage 14 48 26 12 100

Graph: On the basis where product is chosen

No. of Respondents
48
50
40 26
30
14 12
20
10 No. of Respondents
0
ct es ct ct
du ur du du
r o eat r o r o
eP F eP eP
f th and t th f th
o s u o
ng unt bo nd
ti o A a
Ra sc w Br
Di evie
R

Analysis and Interpretation:

Customer perception varies while using Flipkart; it is one of the online shopping
sites which give high discounts and offers.

Most of them in this survey (48%) are looking for good featured product with
high discounts while purchasing products from Flipkart. And also customers more
often go through the product review (26%) before making their decision to
purchase.
Product review is a kind of word of mouth strategy where product users leave their
review on their experiences with Flipkart.

Customers are giving priority to these two features while brand of product (12%)
and rating of product (14%) also taken care by some other customers.
57
13. Issues faced by customer while shopiing in Flipkart.com

Table: Issues faced when purchased from Flipkart

Out of Payment Replacemen Delay in Faulty No Other
Stock Issues t Issues delivery Product issues s Total
No. of
Respondents 37 6 6 12 8 30 1 100
Percentage 37 6 6 12 8 30 1 100

Graph: Issues faced when purchased from Flipkart

No. of Respondents
37
40
35 30
30
25
20 12
15 8 No. of Respondents
10 6 6
5 1
0
ck es es ry ct s rs
Sto ssu ssu live odu sue the
f I I is
to
t t de yP
r O
u m
en
m
en in lt No
O
Pa
y
ac
e lay Fa
u
e pl De
R

58
Analysis and Interpretation:
In this survey, 30% of customers didn‘t face any of those problems that mentioned,
while 37% of customers faced out of stock issue. This is one of serious issue faced
by most of customers. Since discounts and features are the one feature that most of
the customers looking for and when a good product with high discount is displayed
in Flipkart plat form, customers brought it as soon as they could. Thus the products
will be out of stocked.
Flipkart started notifying the customers about the product when the stock got
available.
Payment issues and replacement issues are less in number (total 12%) since
different payment options like EMI options, card payments, Cash on delivery,
Wallet payments etc…are provided by Flipkart and customers are satisfied with
those.
In case of replacement also only less issues are happened, thus shows most of them
are satisfied with that service. Delay in delivery happens because of shipping and
courier service issues. It is a problem with supply chain. Mostly it happens in the
end part of the supply and in rural areas where courier services are less active.
Faulty product issue also happened to 8% of the customers and one of the policies
to overcome this issue is 30 days replacement policy of Flipkart.

14. Recommending Flipkart to Others:

Table: Recommending Flipkart to Others:

Yes No Total
No. of Respondents 95 5 100
Percentage 95 5 100

Graph: Recommending Flipkart to Others:

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 No. of Respondents
95
100
90
80
70 No. of Respondents
60
50
40
30
20 5
10
0
Yes No

Analysis and Interpretation:

In this survey, most of them (95%) are happy to recommend Flipkart to
others like friends and family. And this shows word of mouth publicity
is successfully running and this is one of the great advantages for
Flipkart.

15. Customer’s rating about services on Flip[kart.com:

Table: Rating The experience from Flipkart

1 2 3 4 5 Total
No. of
Respondents 7 11 16 49 17 100
Percentage 7 11 16 49 17 100

Graph: Rating The experience from Flipkart

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 No. of Respondents
49
50
45
40
35
30 No. of Respondents
25
16 17
20
15 11
7
10
5
0
1 2 3 4 5

Analysis and Interpretation:

While analysing the rating of experiences, Flipkart provides a good and
excellent experiences to most of the customers.
Mode of given data: 4 & Median of given data: 4
49% of customers rated 4 as the experience and more than half of the
population (66%) rated4 & 5 as experience

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 CONCLUSIONS AND RECOMMENDATIONS
FINDINGS:
 There is not much difference in gender for using online shopping.
 Students and salaried persons are most frequent users of Flipkart.
 Frequency of purchase for electronics, books and music, apparels
and accessories are more in Flipkart.
 Word of mouth was more influential in promotion as many people
were made aware by their friends and family when customers
recommend this website to them.
 Highly discounted products got out of stock quickly, since
customers purchased it as on as they could when they see high
discount on good featured product.
 The services provided by Flipkart are good and even more scope of
development is there for increasing the customer strength.
 Digital marketing techniques like search engine marketing, links
providing other website and advertisement also functioned well for
promotion of this website.
 Fast delivery is one of best service Flipkart is providing.
 Different payment options available in Flipkart made customers
more satisfied and comfort for paying while purchasing product.
 Customers feeling more secured when purchasing through Flipkart
because of different policies and services they have.
 In comparison with competitors, Flipkart is charging free shipping
for the purchase of300 plus rupees, while others free ship the
service without any barrier.
 Out of stock is the main issue faced by Flipkart.
 Most of customers have good experience with Flipkart while
purchasing products.
 Most of them are satisfied with the services of Flipkart and so that
they succeed in retaining the customers.
 Advertising is an important way to have the brand and products
familiar to consumers Convenience and time saving are two
important factors that customer looking for while purchasing
through online.
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RECOMMENDATIONS:

 Flipkart has successfully placed itself into the prospects mind

making it the India‘s largest online store with huge range of
products. But it still needs to work on their core competence that is
books and stationery items.
 Delivery services can be improved mainly in rural areas by
selecting appropriate courier service which has services in
customer area for dispatching an item.
 Can make free delivery to all priced products.
 Can include more coupon codes and gift vouchers for increasing
the traffic of the customers.
 Out of stock items can made available as soon as possible and
intimate the needed customers.
 Should look for International/ Overseas markets or Neighbouring
Countries.
 Critical mass of Internet users–Internet users in India is increasing
at increasing rate, so Flipkart can target more & more cities i.e not
only tier 1 & 2 but also tier 3 & 4cities, which will help generate
stronger customer base & more revenues.
 Should clearing focus on the Growing Online Apparel business &
it can diversify into apparel category either organically or
inorganically by acquiring other portals.
 User Experience: Portal should continuously aim to work to
improve the user experience by adding more & more innovative
features in the website like virtually shopping basket, virtual trial
rooms. In this competitive world to differentiate via user
experience, the ultimate winner will be the Indian online
consumer.
 Should comprehensively invest into E-CRM & online reputation
management.

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  Logistics & Supply Chain: can continuously aim to reduce the
delivery time cycle.
 Price will still be a factor as amazon being a huge company will
use its economies of scale to remove their competitors from the
market; therefore they need to be more competitive on that aspect.

CONCLUSION:

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The thorough study is based on the consumer behaviour analysis which
serves a great idea regarding consumer perception when they go for
online shopping. In order to satisfy themselves consumer perceive many
things before buying products and they will be satisfied if the company
meet their expectation. The Overall Brand Value of Flipkart is good, but
it is facing some tough competition from its global competitors like
Ebay and Amazon. Talking about domestic market i.e India, it is the
most superior E-business portal which is aggressively expanding &
planting its roots deep into the Indian market & at the same time shifting
the mind-set of the people from going &shopping from physical store to
online stores, which is magnificent!.Be very focused on consumers and
build amazing experiences for the customers.

BIBLIOGRAPHY:
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 www.flipkart.com
 www.commodityindia.com
 www.marketoperation.com
 www.nextbigwhat.com
 www.britannica.com
 www.ecommerce-land.com
 www.commodityindia.com
 www.marketoperation.com
 WIKIPEDIA

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