Evaluation of the factor affecting the

customer satisfaction for Shopping app –

Flipkart
Submitted to - Prof. Kuldeep

Submitted by: Group 2 - AMR 1

INDUSTRY BACKGROUND
The Indian e-commerce market is expected to grow to US$ 200 billion by 2026.
Crucial factors in increase e-commerce penetration - Increased Smart-phone and
Internet Penetration. Also, the COVID-19 pandemic has nudged the e-commerce
sector.

The Indian e-commerce market is led by Flipkart, Amazon India and Paytm Mall.
During 2018, electronics is currently the biggest contributor to online retail sales in India
with a share of 48 per cent, followed closely by apparel at 29 per cent.
 COMPANY BACKGROUND
● Flipkart is an e-commerce company which was started in 2007 by its founders – Sachin and
Binny Bansal
● The company is headquartered in Bengaluru
● The company started selling books at discounts in its initial years following the amazon journey
in the same segment. It started expanding into consumer electronics, fashion apparels and
lifestyle segment with the rise in internet penetration post 2010
● It made its mark after it acquired Myntra, an online fashion retailer for $290 million. It took a
strategic decision to let it operate as a standalone subsidiary, to avoid losing myntra’s loyal
customer base
● The e-retailer became synonymous with huge discounts and low prices and launched events like
Big Billion Day sale that brought the company about $100 million in revenue in a day.
Efforts to Improve Customer Experience in COVID-19

● Flipkart has recently launched a digital platform for kiranas, local MSMEs with an aim to connect
local manufacturers with retailers and bring the entire wholesale marketplace at their fingertips using
technology.
● With the strong capability within the group in B2B, we will focus on meeting the needs of kiranas and
MSMEs by providing these small businesses a wide selection at significant value, powered by
technology to make their lives easier.
● Wholesale customers will have access to an easy credit facility to manage cash flow, a wide range of
Flipkart assured quality products, simple and convenient order returns and speedy product delivery
directly to their shops with an easy order tracking facility
To find all the attributes which
contribute towards customer
satisfaction for an online shopping PROBLEM
apps and to measure the impact of
these factors on the customer DEFINITION
satisfaction which may lead to
loyalty
RESEARCH OBJECTIVE AND HYPOTHESIS
OBJECTIVE Hypothesis 1
H0: User Interface does not affect the satisfaction
To evaluate the various factors which affect the H1: User Interface affect the satisfaction
customer satisfaction for shopping apps. The
target respondents would be users of any Hypothesis 2
shopping app such as Amazon, Flipkart, Myntra, H0: Consumer Risk does not affect satisfaction
Jabong etc H2: Consumer Risk determines satisfaction

Hypothesis 3
H0: Customer Service does not affect satisfaction
H3: Customer Service affects satisfaction
METHODOLOGY QUESTIONNAIRE DEVELOPMENT & PRE-
TESTING
PROJECT DESIGN
The questionnaire included the direct questions on
Initially Exploratory - as factors were not defined. satisfaction and loyalty of users which would be
used as a dependent variable in reference to the
After Literature review - Conclusive Research. independent variables

Quantitative Research encapsulates the preferences First thirty six respondents were used for pilot
of users of different demographics for various testing and the cronbach’s alpha came to be 0.945
factors responsible for customer satisfaction for
shopping apps.

SAMPLING

Sampling Size: 154

DATA COLLECTION METHOD
Non Probability Sampling Method was adopted.
Data Source : Primary Data
Contact Method : Online Questionnaire
Under this the technique used was Convenience
Sampling.
DATA ANALYSIS
Factor Analysis:

KMO= 0.913 >0.6 -- Excellent

The Bartlett’s Test of Sphericity is also significant Cumulative %age the total variance of the chosen
as P < 0.005. factors is 59.414% ( For them whose Eigenvalue
is 1)
This proves that the Data Sample is adequate.
There is no overlapping of the variables between
the defined Factors
 H0 = User Interface does not affect the
Data Analysis satisfaction

From Rotation component Matrix we found that:

Factor 1: User Interface with

V1,V2,V3,V5,V6,V7,V8,V11 as variables

Factor 2: Consumer Risks with V16,V17,V18,V19 as

variables

Factor 3: Customer Service with

V4,V9,V10,V12,V13,V14,V15 as variables As P<0.05 - We can reject the null hypotheses.

Therefore we have
selected Model 2 into
consideration
Data Analysis :
Coefficient Table:
Here Sig Value < 0.05 -- therefore all factor affect
considerably.

Regression Equation for Model 2:

Y= -.256 + (.579)*F1 + (.279)*F2 + (.246)*F3

Here,
Y = Customer Satisfaction
F1 = User Interface
F2 = Consumer Risk
F3 = Customer Service
Results:
● Three factors derived from the research are user interface of application, consumer risk aspects like
privacy, user data security and customer service from the online shopping companies plays significant role
on the satisfaction of the customers using online shopping application. These factors would further help to
determine the customer loyalty and positive word of mouth for the application.

● Any change in the user interface, consumer risk and customer service would directly affect the customer
satisfaction on online shopping applications.
● The User interface variable has high impact on the customer satisfactory compared to other variables which is
evident from the regression model.
CONCLUSIONS & RECOMMENDATIONS

The marketing mix should consider the following three factors to devise the marketing
strategy for online shopping applications as customer satisfaction is positively correlated
with these factors

● A smooth user interface which includes ease of navigation through the app and
product catalogues, stable crashless UI
● Addressing Consumer privacy related concerns i.e secure checkout and consumer
data safety that includes no leakage of credit card/debit card and other sensitive
data etc
● Focus on customer service from the company which may include ease of contact,
return policy of products etc
LIMITATIONS
● The main limitation of the projects is that majority of the data for research was collected from
respondents based in Delhi NCR.

● Majority of respondents are students. This would give a certain bias based on young age and
income level of respondents.