Bba Project Report 012_021726
Bba Project Report 012_021726
PROJECT REPORT
ON
“A Study on Consumer Satisfaction Towards
Online Shopping With Reference To AMAZON”
Submitted in partial fulfilment of the requirement for the award of the degree
Of
Bachelor Of Business Administration(BBA)
1
This is to certify that PANKAJ KUMAR has submitted the project
report titled “( Study of customer satisfaction towards online
shopping with reference to AMAZON)” , towards partial fulfilment of
BACHELOR OF BUSINESS ADMINISTRATION degree examinationof
GOVERNMENT DEGREE COLLEGE BANGANA
under my guidance and supervision.It is further certified that she has
ingeniously completed her project and I recommend the project for
evaluation.
2
DECLARATION
I , PALAK DADHWAL here-by declare that the project with title “STUDY ON
CONSUMER SATISFACTION TOWARDS ONLINE SHOPPING WITH REFERENCE
TO AMAZON” has been completed by me in partial fulfilment of BACHELOR OF
BUSINESS ADMINISTRATION degree examination. It is the record of my work
under the guidance of MR. RAJENDER SINGH. This report is my original work
and has not been submitted by any other examination and does not form the
part of any other course undertaken by me.
3
ACKNOWLEDGEMENT
I will fail in my duty if I do not thank the Non- Teaching staff of the college for
their co-operation.
I would like to thank all those who helped me in making this project complete
and successful.
4
ABSTRACT
Now a days the lifestyle of the people is very different. People feel
uncomfortable & time consuming for going crowded markets. So,
online shopping is a boon as it saves a lot of time. Online shopping is
the process whereby customers directly buy goods and services from
a seller without an intermediary service over the Internet. The main
thing in this study is to find out the customer satisfaction towards the
online shopping with reference to the “AMAZON”. This study focused
on the purchasing pattern of the customers to evaluate the
satisfaction level of services provided by “AMAZON”.
5
PREFACE
6
INDEX
1. Introduction 8-10
2. Company Profile 11-13
3. Research Study: 14-16
• Problem definition 14
• Objectives 15
• Hypothesis 16
7
INTRODUCTION
An online shop evokes the physical analogy of buying products and services at
a regular “BRICKS-AND-MORTAR” retailer or shopping centre ; the process is
called BUSINESS-TO-CONSUMER (B2C) online shopping. When an online store
is set up to enable businesses to buy from other businesses ; the process is
called BUSINESS-TO-BUSINESS (B2B) online shopping. A typical online store
enables the customer to browse the firm’s range of products and services, view
photos or images of the products , along with information about the product
specifications, features, and prices.
Online stores usually enable shoppers to use “search” feature to find specific
models, brands, and items. Online customers must have access to the Internet
and a valid method of payment in order to complete a transaction, such as a
credit card, an Interac – enabled debit card, or a service such as PayPal. For
physical products (e.g., paperbacks books or clothes), the e- retailer ships the
products to the customers ; for digital products , such as digital audio files of
songs or software, the e-retailer usually sends the files to the customers over
the Internet. The largest of these online retailing corporations as Alibaba,
Amazon.com and eBay.
8
HISTORY OF ONLINE SHOPPING :
One of the earliest forms of trade conducted online was IBM’s online
transaction processing (OLTP) developed in the 1960s, which allowed
the processing of financial transactions in real- time. The
computerized ticket reservation system developed for American
Airlines called Semi- Automatic Business Research Environment
(SABRE) was one of its applications. There, computer terminals
located in different travel agencies were linked to a large IBM
mainframe computer, which processed transactions simultaneously
and co-ordinated them so that all travel agents had access to the
same information at the same time, at some point, students at
Stanford and MIT used the Internet precursor ARPANET to make a
deal to exchange marijuana, but the interaction doesn’t qualify as
e-commerce because no money was transferred online.
9
buy. But also importantly, in the early days, there were few shoppers
Online and they were from a narrow segment : affluent, male, 30+.
Online shopping has come a long way since those early days and – in
the UK – accounts for significant percentage ( depending on product
category as percentage can vary).
10
COMPANY PROFILE
11
• HISTORY OF AMAZON :
Amazon was founded on July 5, 1994, by JEFF BEZOS , who choose the Seattle
area for its abundance of technical talent, as Microsoft was in the area.
Amazon went public in May 1997. It began selling music and videos in 1998 and
began international operations by acquiring online sellers of books in the United
Kingdom and Germany. The following year, it began selling music, video games,
consumer electronics, home improvement items, software, games & toys.
12
During the COVID-19 pandemic, Amazon introduced a hazard pay of $2-per-
hour, changes to overtime pay and a policy of unlimited, unpaid time off until
April 30, 2020. The hazard pay increase expired in June 2020, and the paid
time-off policy in May 2022. Amazon also introduced temporary restrictions on
the sale of non-essential goods and hired 1,00,000 more staff in the US &
CANADA . Some Amazon workers in the US , France and Italy protested the
company’s decision to “run normal shifts” despite many positive COVID-19
cases . In Spain, the company has faced legal complaints over its policies. A
group of US Senators wrote an open letter to BEZOS in March 2020, expressing
concerns about worker safety.
On February 2, 2021, Amazon announced that JEFF BEZOS would step down as
CEO to become executive chairman of Amazon’s board in Q3 of 2021. ANDY
JASSY, previously CEO of AWS, became Amazon’s CEO. In January 2023, Amazon
announced job cuts for over 18,000 workers in ab attempt to cut costs.
13
RESEARCH STUDY
• PROBLEM DEFINITION :
Today with technological and digital advancements almost
everything can be done online , almost every service is available at
fingertips. Similarly, online shopping is a type of service which is shifted
online by customers on a large scale.
So, this is what the exact problem is, the online shopping is useful in various
aspects and especially for customers today, but it is still not so developed
that it can fulfil the needs of customer in desired manner.
Online shopping is in demand today, but various factors are still absent in
this service due to which it lags behind the offline mode of shopping.
However, it is very necessary to fill the loopholes present in the online
shopping services as day-by-day life of people is becoming busier than
before and thus online shopping will become a necessity in future where
such shortcomings may lead to the failure of online shopping mode to fulfil
the customer’s demand .
14
• OBJECTIVES :
According to the problem defined above, the
primary objective of this research report is to find various shortcoming
of online shopping services and the problems faced by customers with
Online shopping services and the problems faced by customers with
online shopping services, so that effective solutions for such problems
can be discovered and implemented ,so that this can be made more
convenient for customers.
Hence, in order to achieve this objective, it is splitted into various parts,
so following are the objectives for this research project:
2) Study the entire process of online shopping services and to figure out
the problems faced during execution of such services- It is very
important & major objective which is to analyze the various factors
influencing online shopping services & to find out the shortcomings in
those factors in order to come up with a solution on them.
3) Observe whether people prefer online shopping over offline or not & if
yes, then for which sort of commodities? – The scope of this research is
extended to find out the ratio of customer’s preferring online shopping
over offline shopping & also to figure out that which commodities are
preferred to be purchased online while which sort of commodities are
likely to be purchased offline by customers.
15
• HYPOTHESIS:
1. Null Hypothesis -There is a significant relationship between service quality
& online customer satisfaction.
The possible outcome for this research may suggest that
there is a direct impact of service quality on customer satisfaction. It means
customer satisfaction can be increased by improving the service quality of
online shopping services, it means that online shopping is controllable factor.
16
RESEARCH METHODOLOGY
• QUANTITATIVE RESEARCH:
In natural & social science, and sometimes in other fields, quantitative
research is the systematic empirical investigation of observable phenomena
via statistical, mathematical, or computational techniques. The objective of
quantitative research is to develop & employ mathematical models,
theories and hypothesis pertaining to phenomena. This process of
measurement is central to quantitative research because it provides the
fundamental connection between empirical observation & mathematical
expressions of quantitative relationships.
Quantitative research is generally closely affiliated with ideas from the
scientific method which includes:
17
QUANTITATIVE RESEARCH
ADVANTAGES DISADVANTAGES
• Specific research problem. • Limited outcomes due to
• Clear independent & structured method.
dependent variable. • Inability to control the
• High level of reliability. environment.
• Minimum personal judgement. • Expensive (larger number of
respondents).
OBSERVATION,
PRIMARY DATA INTERVIEWING,
QUESTIONNAIRE, etc.
TYPES OF DATA
COLLECTION GOVERNMENT
RESEARCH, EARLIER
SECONDARY DATA RESEARCH, CENSUS,
PERSONAL RECORDS,
CLIENTS HISTORY, ETC
Here we have used both Primary & Secondary Data while conducting
research.
18
WHAT IS SECONDARY DATA ?
Secondary data is the data that have been already collected by and readily
available from other resources. Such data are cheaper and more quickly
obtainable than the primary data and may be available when primary data
cannot be obtained at all.
Here, various websites, books and journals are being referred for secondary
data.
19
DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS:
Analysis of data is a process of inspecting, cleaning, transforming & modelling
data with the goal of discovering useful information, suggesting conclusion,
and supporting decision making. The process of evaluating data using analytical
and logic reasoning to examine component of data provided. Data from various
source is gathered, reviewed & then analyzed to form some sort of findings or
conclusion.
• Compare variables.
• Forecast outcomes.
The research method used was survey through questionnaire. A sample size of
36 people was taken.
20
ANALYSIS OF SECONDARY DATA:
1) What are the various factors influencing the delivery of online shopping
services?
The result reveals that service quality of online shopping depends on ten
distinct quality factors like fulfilment, system availability, privacy, efficiency,
organized website, product quality, compensation, contact, responsiveness &
branded product availability. From the analysis it can be concluded that 25.6%
variance in the customer satisfaction can be explained by the service quality
dimensions which are fulfilment, system availability & product quality are
found positively related with customer satisfaction towards online shopping in
the country.
21
• Customer Experience:
Customer experience or user experience is a key to a successful e-
commerce website. Shoppers expect a similar if not same experience as
one they would get in a brick & mortar store. The flow of the website,
the segmentation of the website and the retail personalization of
products based on the shopper’s preferences are imperative.
• Customer Loyalty:
Here are two facts that show the importance of customer loyalty :
22
From a retailer’s standpoint, how do they stand out from the crowd? How do
they bring shoppers to their websites, instead of buying a similar product from
their competitors?
There are a lot of aspects that need to be in place for a successful retail
business, but a good technology foundation is crucial.
• Customer Support :
With the scale of eCommerce increasing rapidly & with the rising
number of users facing everyday issues with eCommerce services.
Customer support has been augmented with chatbots which enable
faster processing. However, many customers find themselves feeling
uncomfortable with automated responses from chatbots.
23
• Cross- border eCommerce:
A lot of eCommerce sites tend to stagnate due to the lack of interaction
with customers outside their geographical & linguistic range. Users that
do not speak the primary language used on the site tend to look for
other retailers that can offer them a better user experience. Moreover,
the differences in pricing, tax rates etc., deter users from purchasing
across borders.
• Marketing Budgets :
With digital marketing becoming the norm for most eCommerce
businesses, more companies are flocking towards their digital & social
media ad spends. With the demand for clicks & virtual advertising space
increasing, so does the price. This can become very expensive for small &
medium- sized retailers and in fact, it is one of the biggest eCommerce
challenges that they face.
• Going Omnichannel:
Selling your products through multiple channels enables you to increase
your overall revenue & Average Order Value (AOV). A customer that
shops on multiple channels is likely to spend three- times more than the
average customer. However, if not done right then some channels might
lead to losses.
• Data Privacy :
Customers today are aware of the importance of their data and the need
for data privacy. Device manufactures like Apple are going the extra
miles to ensure that their user’s data are kept safe from third parties.
However, user data can also enable platforms to provide them a better
user- experience.
• Logistics:
Companies across the world are affected by supply chain issues every
year & considering it is a layered process, issues, and errors occur at
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multiple steps during the process which leads to added expenses and delays.
• Store Agility:
How rapidly can you roll out new features, posts & market fresh content?
Due to the rapid evolution of eCommerce, it is crucial that you
implement an agile company model. Staying relevant and up to date with
trends is crucial for eCommerce businesses to survive & thrive and
provides their customers the best possible user- experience.
• Customer Expectations:
Modern consumers these days are increasingly informed and aware with
the advent of new technology and exposure to multiple brands &
services. The modern consumer has high expectations for the kind of
products and services they pay for and are constantly on the lookout for
better experiences.
• Sustainability:
Retailers are now being incentivized to the market, their goods and
services as having a low environmental impact due to the increased
global attention on sustainability due to consumer demand. Nearly 60%
of consumers are ready to alter their purchase patterns in order to
lessen their impact on the environment.
25
ANALYSIS OF PRIMARY DATA :
4.40%
47.80%
47.80%
INTERPRETATION:
Here, 47.8% of customers find online mode of shopping more convenient &
exactly same number of customers find offline mode more convenient.
However, only 4.4% of customers find both the modes equally convenient.
Hence, it can be concluded that both online & offline modes of shopping are
equally preferred by customers at present.
26
• User experience about AMAZON app/website:
2.80%
8.30% 8.30%
16.70%
63.90%
INTERPRETATION:
Here, among 36 users of AMAZON 63.9% customers agree & 8.3%
customers strongly agree that AMAZON is user friendly. It means
72.2% of customers find the online application user friendly.
However, 16.7% of customers have neutral opinion & 11.1% of
customers do not find it user friendly. Hence, AMAZON can be said
user friendly.
27
• Costumer care services of AMAZON :
Best 16.7%
Good 66.7%
Neutral 13.9%
Bad 0%
Worst 2.7%
2.70%
0%
13.90% 16.70%
BEST
GOOD
NEUTRAL
BAD
WORST
66.70%
INTERPRETATION:
Here, 66.7% of users find customers care services of AMAZON good, while
16.7% & 13.9% users find it best and neutral respectively. However, a very little
proportion of customers i.e., 2.7% of them find it worst. The above data
indicates that majority of customers are satisfied by AMAZON’s customer care
services.
28
• Payment mechanism of AMAZON :
2.80% 0%
11.10%
INTERPRETATION:
Payment mechanism of AMAZON is good and very good according to the 58.3%
and 27.8% of customers respectively. 11.1% being neutral and 2.8% find it bad.
However, any customer doesn’t find it very bad. Therefore, it can be concluded
that customer satisfaction is high in respect to AMAZON’s payment
mechanism.
29
• Reliability of information about products :
0% 0%
16.70%
25%
Strongly agree
Agree
Nuetral
Disagree
Strongly disagree
58.30%
INTERPRETATION :
58.3% of customers agree, & 16.7% of the customers strongly agree that the
information provided on AMAZON about the product is reliable for online
shopping. While 25% of them have a neutral opinion on it. There is no negative
opinion for this question at all. Hence, it is clear that information reliability
provided about the product on AMAZON is highly reliable.
30
• Information about current status of ordered products :
0%
8.30% 8.30%
STRONGLY AGREE
25% AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
58.30%
INTERPRETATION:
58.3% and 8.3% of customers agree and strongly agree that they are satisfied
with the information about the current status if the product. While, 25% of
customers have neutral opinion and 8.3% customers strongly disagree with the
same. This indicates that customer satisfaction is high with respect to current
status of their products is AVERAGE.
31
• Notification about current offers:
2.80% 0%
16.70% 22.20%
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY AGREE
58.30%
INTERPRETATION:
58.3% and 22.2% of customers agree and strongly agree that they receive
notification about current offers timely. 16.7% of customers have a neutral
opinion, while 2.8% of customers disagree for the same. From this data it can
be concluded that customers are satisfied with the notifications about current
offers.
32
• Delivery of product on time:
2.80% 0%
22.20%
STRONGLY AGREE
27.80%
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
47.20%
INTERPRETATION:
Here, getting the product on prescribed date is agreed and strongly agreed by
47.2% and 22.2% customers respectively. While 27.8% of customers have
neutral opinion and 2.8% customers disagree with it. It means customers are
satisfied with the time taken for delivery of products.
33
• Price worthiness of product quality:
8.30% 5.60%
5.60%
STRONGLY AGREE
AGREE
22.20% NEUTRAL
DISAGREE
STRONGLY DISAGREE
58.30%
INTERPRETATION:
Price worthiness of AMAZON products is agreed and strongly agreed by 58.3%
and 5.6% of customers respectively. 22.2% of them have neutral opinion on it
and 8.3% and 5.6% of customers strongly disagree and disagree respectively.
Hence, there is an average satisfaction among customers about price
worthiness of product quality.
34
• Resemblance of product with the image of it on
site/app:
True 69.4%
False 30.6%
30.60%
TRUE
FALSE
69.40%
INTERPRETATION:
69.4% of customers get variations in product as compared to the images shown
on the website. While 30.6% of them don’t find variations in the product.
Hence, it can be concluded that products are not as expected by the
customers.
35
• Product safety in packaging & transportation:
5.60%
5.60%
19.40%
Strongly agree
19.40% Agree
Neutral
Disagree
Strongly disagree
55.60%
INTERPRETATION:
55.6% of customers agree and 19.4% of customers strongly agree that the
packaging and transportation of products keep them safe. However, 5.6% of
customers strongly disagree and disagree for the same. 19.4% of customers
have a neutral opinion on it. Hence, it can be concluded that customers are
satisfied with the packaging and transportation of AMAZON online shopping
services.
36
• Return and exchange method:
Agree 47.2%
Neutral 27.8%
Disagree 5.5%
5.50%
5.60%
13.90%
STRONGLY AGREE
AGREE
27.80% NEUTRAL
DISAGREE
STRONGLY DISAGREE
47.20%
INTERPRETATION:
13.9% of customers and 47.2% of customers strongly agree & agree
respectively that that return and exchange method of AMAZON is convenient.
5.6% customers strongly disagree and 5.5% of customers disagree. While 27.8%
of customers have neutral opinion on it. It means customers are satisfied with
return and exchange method.
37
• Product quality:
2.80%
0%
11.10%
22.20% BEST
GOOD
AVERAGE
BAD
WORST
63.90%
INTERPRETATION:
Quality of products is found good by 63.9% of customers and best by 11.1% of
customers. 22.2% of customers found the product quality average whereas
2.8% of customers find the worst product quality. It proves that customers are
highly satisfied with the product quality.
38
• Efficiency of shopping on AMAZON:
2.80%
0%
13.90%
61.10%
INTERPRETATION:
Efficiency of online shopping on AMAZON is agreed and strongly agreed by
61.1% and 13.9% of customers respectively. Whereas 2.8% of customers
disagree with the same and 22.2% of customers have neutral opinion on it.
Hence, it can be concluded that customers are highly satisfied with the price of
products on AMAZON.
39
• Variety of products on AMAZON:
2.90%
0%
17.10%
31.40% STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
48.60%
INTERPRETATION:
31.4% and 48.6% customers strongly agree and agree respectively that the
AMAZON offers variety of products. 17.1% of customers have a neutral opinion
and 2.9% customers disagree with it. Hence, it can be concluded that
customers are satisfied with the variety of products on AMAZON.
40
FINDINDS, CONCLUSION & LIMITATIONS
FINDINGS:
• Here, 47.8% of customers find online mode of shopping more convenient
and exactly same number of customers find offline mode more
convenient. However, only 4.4% of customers find both the modes
equally convenient. Hence, it can be concluded that both online & offline
modes of shopping are equally preferred by customers at present.
• Here, 66.7% of users find customer care services of AMAZON good while
16.7% and 13.9% of users find it best and neutral respectively. However,
a very little proportion of customers i.e., 2.7% of them find it worst. The
above data indicates that majority of customers are satisfied by
AMAZON’s customer care services.
41
• 58.3% and 8.3% of customers agree and strongly agree that they are
satisfied with the information about the current status of the product.
While 25% of customers have neutral opinion and 8.3% customers
strongly disagree with the same. This indicates that customer satisfaction
with details of current status of their products is average.
• 58.3% and 22.2% of customers agree and strongly agree respectively that
they receive notifications about current offers timely. 16.7% of
customers have a neutral opinion, while 2.8% of customers disagree for
the same. From this data it can be concluded that customers are satisfied
with the notification about current offers.
• 55.6% of customers agree and 19.4% customers strongly agree that the
packaging and transportation of products keep them safe. However, 5.6%
of customers strongly disagree and disagree for the same. 19.4% of
customers have neutral opinion on it. Hence, it can be concluded that
customers are satisfied with the packaging and transportation of
AMAZON online shopping services.
42
• 13.9% of customers and 47.2% customers strongly agree and agree that
the return and exchange method of AMAZON is convenient. 5.6%
customers strongly disagree and 5.5% of customers disagree while 27.8%
customers have neutral opinion on it. It means customers are satisfied
with return and exchange method.
• 31.4% and 48.6% of customers strongly agree and agree respectively that
the AMAZON offers variety of products. 17.1% of customers have a
neutral opinion and 2.9% of customers disagree with it. Hence, it can be
concluded that the customers are satisfied with the variety of products
on AMAZON.
43
CONCLUSION:
From the data analysis and interpretation, it can be concluded that
the customer satisfaction of online shopping services of AMAZON is
at an average level. However, there are various problems faced by
the service providers too. Hence, it can be concluded that there is a
significant relationship between the service quality and customer
satisfaction.
LIMITATIONS:
This research however has a very limited scope as it was limited to
only 36 customers and AMAZON is a platform which vary a lot of
customers shops. Also, it is limited in the relation to objectives of
study as the objective of this study is to figure out problems with the
online shopping services but the research is limited to the online
shopping services of AMAZON only.
SUGGESTIONS:
As the factor of customer dissatisfaction is related to the quality of
the product i.e., its price worthiness and the resemblance of product
with that of image. AMAZON should work upon the quality of
products and should try to make the products price worthy.
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BIBLIOGRAPHY:
1.https://en.wikipidea.org/wiki/onlineshopping#:~:text=online%20sh
opping%20is%20a%20form,browser%20or%20a%20mobile%20app
2. https://en.m.wikipidea.org/wiki/file:amazonlogo.svg
3. https://en.wikipidea.org/wiki/amazon(company)
4.https://www.researchgate.net/figure/KMO-and-Bartletts-
Testtbl3327237689
5. https://vue.ai/blog/ai-in-retail/ecommerce-challenges-in-2024
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