Hritik Bba6a Project Report

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Project Report on

CONSUMER PREFERENCES: FLIPKART V/S


AMAZON
Submitted in partial fulfillment of the requirements
for the award of the degree of

BACHELOR OF BUSINESS ADMINSTRATION

Under the Guidance of: Submitted By:


(Mrs.Sima Kumari) Hritik
Professor, DSPSR BBA VI Semester
Enrollment No.01912501719

Session 2019-2022

Delhi School of Professional Studies and Research


(Affiliated to Guru Gobind Singh Indraprastha University, New Delhi)
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S. NO. TOPIC Page No.

1 Declaration 3
2 Certificate 4
3 Chapter I Introduction 5-17
4 Background Of Topic
5 Objective Of Study
6 Company Profile
7 Chapter II 18-19
8 Review Of Literature
9 Chapter III 20-23
10 Research Methodology
11 Chapter IV 24-35
12 Presentation Of Data & Presentation
13 Chapter V 37-41
14 Conclusion & Recommendation
15 References
16 Research Paper
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Declaration

I take this opportunity to express my profound gratitude and deep regards to my guide (MRS
SIMA KUMARI) for his exemplary guidance, monitoring and constant encouragement
throughout the course of this project. The blessing, help and guidance given by (him/ her)
time to time shall carry me a long way in the journey of life on which I am about to embark.

Last but not least, my sincere thanks to my parents and friends for their wholehearted support
and encouragement.

I also hereby declare that the project work entitled “project title” under the guidance of
“supervisor’s name” is my original work and it has not been submitted earlier in any other
university or institution.

(Hritik)

BBA - (VIth B)
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Certificate

This is to certify that the project titled “(Consumer Preferences: Flipkart V/s Amazon)” is
an academic work done by (Mr. Hritik) submitted in the partial fulfillment of the
requirements for the award of degree of Bachelor of Commerce (Hons.)at Delhi School of
Professional Studies and Research, New Delhi under my guidance and direction.

(Mr. Hritik) has given an undertaking that the information presented in the project has not
been submitted earlier.

(Signature of Faculty)

( Mrs Sima Kumari)

(Professor), DSPSR
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CHAPTER 1
INTRODUCTION
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 INTRODUCTION

1.1BACKGROUND OF THE TOPIC


“Con

sumer is the sole end and purpose of all production; and the interest of the producer

ought to be attended to only so far as it may be necessary for promoting that of the

consumer."

Ada

m Smith The growing interdependence of the world economy and international

character of many business practices have contributed to the development of universal

emphasis on consumer.

Modern technological developments have no doubt made a great impact on the quality,

availability and safety of goods and services. A consumer person who purchases or

ultimately consumes goods and services. Growing practice of electronic transactions

includes both e- commerce and e- consumers.

Internet is changing the way consumers shop and buys goods and services and has

rapidly evolved into a global phenomenon. Many companies have started using the

Internet with the aim of cutting marketing costs, thereby reducing the price of their

products and services in order to stay ahead in highly competitive markets. Even

Government institutions have started replacing their paperwork. Companies also use the

Internet to convey, communicate and disseminate information, to sell the product, to

take feedback and also to conduct satisfaction surveys with customers.

Customers use the Internet not only to buy the product online, but also to compare
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prices, product features and after sale service facilities they will receive if they purchase
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the product from a particular store. Many experts are optimistic about the prospect of

online business.

Online shopping is definitely a great way to shop with everything available on the

websites from clothes, gift items, food, home needs, medicines, and many more, this

mode of shopping allows one to shop conveniently without hassle on spending hours in

a supermarket or shopping areas. The Internet with its wide array of information nooks,

allows the customer to go through various reviews of the product or service before

actually heading for purchases. These online shopping websites also have daily deals

for the customer looking for discounts and store offerings.

Profits and growth can be sustained only by adopting ethical methods of doing

business. Most of the products or services which consumers buy or pay for, are

durables and services. Rather than earning short term profit, the focus should be more

on achieving long term goals.

Consumer behavior is said to be an applied discipline as some decisions are

significantly affected by their behavior or expected actions. The online purchasing

behavior of online shoppers and factor influencing online shopping behavior and its

future perspective. Customers use the Internet not only to buy the product online, but

also to compare prices, product features and after sale service facilities they will receive

if they purchase the product from a particular store. Many experts are optimistic about

the prospect of online business.

A consumer before buying any product online, he will check the authenticity of the

online shopping website as how much the site is trustworthy and reliable as in online

shopping the consumer or buyer is not able to see the seller and cannot check the

product until it has been delivered to him.


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Process of shopping at an online store


.
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1.2 OBJECTIVE OF STUDY

 To understand the consumer’s preference of online shopping for Flipkart & Amazon

 To know how consumers preference shape towards online stores.

 To find out the key concerns of consumers while online shopping.


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COMPANY PROFILE

Flipkart is an electronic commerce company headquartered in Bangalore, Karnataka.

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the

Indian Institute of Technology Delhi. They worked for Amazon.com, and left to create

their new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd.

The first product they sold was the book Leaving Microsoft To Change the World to a

customer from Hyderabad. Flipkart now employs more than 33,000 people.

After the failure of its 2014 Big Billion Sale, Flipkart carried out a second Big Billion

Sale.[17] where it is reported that they saw a business turnover of $300 million in gross

merchandise volume.Flipkart.com ranks #502 in world according to Alexa traffic

rankings. In Google page it ranks #6. It receives 2.2 million-page views in a day and

generates $6,574 in advertising revenue every day. Moreover, it has certain losses

0.60% in traffic ranking. Loading time of an average page is 2.1 sec as it is much faster

than 29% of sites around the world. The mode of payments includes Credit card, Debit
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card, Net-banking, e-gift vouchers, cash on delivery.


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Market Trend Analysis

 Current size of e-commerce market in India is $11.2 billion.

 360 e-commerce portal offering services in India (tripled since 2010)

 Internet users in India is expected to grow to 376 million by 2015

 SWOT Analysis of Flipkart

PICTURE SOURCE: https://www.google.com/search?


q=swot+analysis+of+flipkart+smart+art&sxsrf=ALeKk03Xy1o8mhP3jwoPL3jdZFA9r7g
IUA:15
88852295848&source=lnms&tbm=isch&sa=X&ved=2ahUKEwia1MaF2KHpAhWM6nM
BHVM EBeMQ_AUoAXoECAwQAw&biw=1366&bih=625#imgrc=02Vn67ffSjlIaM
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AMAZON
The International giant e-commerce retailer recently stepped into India with an Indian

version site www.amazon.in, since the launch, amazon.in has seen a nice growth in the

number of customers. Amazon.com too had a huge number of Indian customers even

before it launched store in India. The store hosts wide range of products like

Electronics, Mobiles, Laptops, Books, Fashion, Jewelry, Kitchenware and more.

It is an American electronic commerce company with headquarters in Seattle,

Washington. It is the largest internet-based retailer in the United States. It started as an

online bookstore, but soon diversified selling DVD’s, Blue-rays, CD’s, Videos’

downloading, MP3 downloading, Software, videogames, electronics, apparel,

furniture, food, toys and jewelry. It was separate retail websites for the United States,

United Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherland,

Australia, Brazil, Japan, China, India, Mexico. Amazon also offers international

shipping to certain countries for some of its products. In 2011 it had professed an

intention to launch its website in Poland and Sweden.

Amazon’s Business Strategy


Amazon is basing its business strategy on 3 pillars:

 Vast selection

 Low cost

 Fast delivery
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SWOT Analysis of Amazon


PICTURE SOURCE: https://bstrategyhub.com/wp-content/uploads/2018/12/AMZ2.png
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NATIONAL SCENARIO

India in the recent years has been experiencing an exponential growth in e- commerce

and there are new companies springing up at a rapid rate. E-commerce had a standout

year in 2015, when it grew in size from $5 Billion to $8 Billion and pervaded every

aspect of our lives. In 2016, it grew further. The industry is set to become more ‘m’, or

mobile, than ‘e’ commerce. M- commerce has been and will be the inevitable trend of

modern times. That means more users. No doubt, more users will help companies build

scale, but they will embrace a few changes themselves.

Companies will go after profitable growth rather than wooing customers with deep

discounts (in other words, running on losses). A bigger user base will just be the cue

for companies to reduce discounts and focus on profitable growth.

uilding scale won’t be a challenge for the large players,” says Sandeep Aggarwal, founder,

Shopclues. Six of the largest e-commerce players- Flipkart, Amazon India, Snapdeal, eBay.in

and Shopclues- together have about 85-90% of the e-commerce business in India.

Cash on Delivery (COD), a preferred mode of payment for many customers, will

decline as more and more people familiarize themselves with using payment wallets to

shop and pay bills.

Companies will have their hands full as more users come on board, but they will be up

to the task of serving the needs of customers. That will lead to the emergence of new

categories of services like delivering even milk and water – which Paytm founder Vijay

Shekhar Sharma believes “will replace the neighborhood store.” “You won’t need to

step out to shop.”


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Brick-and-mortar will not disappear, but “there’ll be more fusion between online and

offline services,” he adds. Here is a tantalizing possibility of how this and then walk

down to the store to pick up the product selected.

“Self-logistics will be an option,” says Sharma. Shopclues’ Aggarwal says the

ecosystem is healthier and is maturing. “There will be higher adoption of m-commerce

and mobile wallets.”

E-commerce will make inroads into rural areas. Traditional business houses such as

Reliance Industries and Tata Group will enter the business more aggressively. One key

challenge will be logistics as there is no large-scale player that covers the whole

country cost effectively.

GOVERNMENT LAWS & REGULATIONS ON ONLINE RETAIL

In a boost to retailers and grocery start-ups such as Bigbasket and Grofers, the

government on Monday allowed 100% FDI in food retail, including through e-

commerce, provided such items are produced, processed or manufactured in the

country.

This will allow multi-brand retail giants such as Walmart to look at their food business
here

closely and perhaps even foray into B2C food retail. Currently, the US giant operates a
B2B 20

business here since FDI in multi-brand retail is not allowed. The US retailer has built a

strong backend infrastructure in food. Similarly, the move will help Indian hyper-local

grocery start- ups raise funds more easily.

"The decision by the government to allow up to 100% foreign direct investment (FDI)
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through FIPB in marketing of food products produced or manufactured in India,


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including through e- commerce, is very progressive and will help in reducing wastage,
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helping farm diversification and encourage industry to produce locally within the

country. This far-reaching reform will benefit farmers, give impetus to food processing

industry and create vast employment opportunities. We will study the policy document

when government finalizes and issues it," said a Walmart India spokesperson.

The decision comes without any riders, department of industrial policy and promotion

secretary Ramesh Abhishek said. The food processing ministry wanted the food

retailers to mandatorily invest in back-end infrastructure besides being allowed to sell

some non-food goods.

DIPP said that the e-commerce marketplace may provide support services to

sellers in warehousing and logistics.

However, such entities will not exercise ownership over the inventory. “Such an

ownership over the inventory will render the business into inventory-based model,” it

said in a press note.

As per the norms, an e-commerce firm will not be permitted to sell more than 25 per

cent of total sales from one vendor or its group companies. “E-commerce entities

providing marketplace will not directly or indirectly influence the sale price of goods or

services and shall maintain level playing field,” it added.

This may require some of the existing players to alter their structures. “The cap of 25%

on sales by a vendor on marketplace will ensure a broad basing of vendors for a true

marketplace. This may require some of the operators to go back to the drawing board to

ensure compliance,” Mr. Gupt added.


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INTERNATIONAL SCENARIO

Consumers worldwide spent nearly $3.46 trillion online in 2019, up from $2.93 trillion

in 2018, according to the forecast from Internet Retailer, a Digital Commerce 360

brand. The expected 17.9% year-over-year growth in global web sales would be a

slowdown from the 20.7% jump last year. However, global web sales are still growing

faster than the more saturated U.S. ecommerce market, which Internet Retailer projects

increased to 14.0% in 2019.

Global retail sales through all channels are likely to hit $21.00 trillion by the end of the

year, a 3.4% uptick from $20.31 trillion in 2018, according to Internet Retailer

estimates. This would increase online’s share of total retail sales to 16.4%, and

ecommerce would account for more than three-quarters of overall retail gains.

As online revenue continues to grow each year, larger gains are necessary to achieve

the same level of growth, so some deceleration makes sense. Ecommerce penetration

has steadily been on

the rise—with online’s share of retail spend registering 10.5% in 2016, rising to 12.3%

in 2017 22 and closing out 2018 at 14.4%, Internet Retailer estimates. The momentum

continued into 2019, with penetration north of 16.0%, according to Internet Retailer’s analysis.

The largest online retailers are powering this growth. In 2018, three of the top 10 global

online retailers ranked by 2018 ecommerce sales (excluding sites operating exclusively as

marketplace platforms) were web-only merchants. Their online revenue also significantly

contributed to bumping up 2018’s ecommerce penetration. As web sales rise without an

accompanying uptick in offline sales, online’s share of total retail sales grows. As a whole,

the top 10 hit $427.28 billion in ecommerce sales in 2018, up 22.5% from $348.91 billion
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in 2017. These retailers accounted for 14.6% of all global ecommerce sales in 2018.
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CHAPTER 2
REVIEW OF
LITERATURE
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The online consumer market place is growing at an exponential rate. At the same time,

technology has enhanced the capacity of online companies to collect, store, maintains,

transfer and analyze vast amount of data from and about the consumer who visit their

web sites. This increase in the collection and use of data has raised public awareness and

consumer concern about online privacy. Number of studies has been done in this field

some of which are discussed below:

Subba Rao, Truong, Senecal and Le, (2007) conducted the study on ―How Buyers

Expected Benefits, Perceived Risks, and E-Business Readiness Influence their

Marketplace Usage and claims that buyer ‘s E-business readiness moderated the relationship

between expected benefits and usage of electronic marketplaces

Prasad and Aryasri (2009) have explored the determinants of shopping behaviour such

as convenience, customer service, trust, web store environment and web shopping

enjoyment and examine the effect of these factors towards online buying behaviour.

Dr. Durmaz(2011) in the study entitled ― impact of cultural factors on online shopping

behaviour and the study found that while buying goods and services, culture, beliefs and

traditions take an important position, while the environment, friends and social groups

stated 48.6% .In this case the impact of cultural factors means a lot.

Wells et al. (2011) in his study entitled ― online impulse buying: understanding the
interplay

between consumer impulsiveness and website quality‖ focused on the direct relationships
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between the website and online impulse buying. The study found and proposed the model
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considered the direct influence of website quality on the urge to buy impulsively.
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Dahiya Richa (2012) in the study entitled ― Impact of demographic factors of consumers on

online shopping behaviour: a study of consumers in India‖ and the study found that On-line

shopping is a recent phenomenon in the field of E-Business and is definitely going to be the

future of shopping in the world. Most of the companies are running their on-line portals to

sell their products/services on-line


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CHAPTER 3
RESEARCH
METHODOLOGY
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DATA COLLECTION METHOD

Primary Data

It is original primary data, for specific purpose of research project. For this project, I

have to use the common research instrument or tool- Questionnaire.

Secondary Data

It will be collected to add the value to the primary data. This may be used to collect

necessary data and records by different websites, magazines, annual reports, journals,

reference books, and newspapers, etc.

SAMPLE DESIGN

Sample Unit

For studying consumer preference towards on online shopping platforms, samples

were randomly selected from Kolkata.

Sample Media

Questionnaire in the form of google forms. Sampling Methods –

 Random sampling

 Convenient sampling

Sample size - 100


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Research place – Chandni Chowk Area of Kolkata which is the hub of electronic

goods in the city.

Period of Study-

For Primary Data: 01.04.2020 to 15.04.2020

For Secondary Data: 15.04.2020 to 30.04.2020

Limitations of the Study

 Sample Size: A larger sample size would have ensured a significant


representative distribution of people.
 Lack of prior research studies on the topic: Depending on the scope of my
research topic there was little prior research on the same.
 Longitudinal Effect: The time available to investigate was constrained by
due date of the assignment.
 Cultural Bias: Culturally biased research can have significant real-world
effects. One way to deal with cultural bias is to recognize it when it occurs
which I have certainly kept in mind.
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QUESTIONNAIRE

1. What age-group do you fall into?


2. What do you do currently?
3. Are you a frequent online shopper?
4. Which platform do you prefer for your online shopping?
5. What is your most preferred mode of payment while you purchase from
online?

6. .Which online store has a better & effective mobile app layout for your
ease of shopping
7. .When do you mostly shop from your preferred online store?
8. Which is the most frequently purchased product from your preferred online store?
9. Which online store has products at a lower price as compared to the other?
10. Which online store has a better product display & description?
11. Which online store has a better product display & description?
12. Which online store has a variety of product choices in-terms of sorting & filtering as per
individual requirements & seller ratings?

13. Which online store gives you a better customer feedback, rating & reviewing system?
14. Which online store has a better ‘After-sales service’?
15. Which online store has a better customer-friendly ‘exchange/ return/ replacement and/or
refund policy’?
16. Which online store has a swift delivery system?
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CHAPTER 4
PRESENTATION OF DATA
INTREPRETATION AND
PRESENTATION
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DATA ANALYSIS

The objectives of the research were studied with respect to a regular online shopper who
shopped more than once because they would be the right respondent to give an insight
about the online shopping. Therefore it is firstly important to understand who is a regular
online shopper. In the survey the respondents were asked the following questions which
helped to know about a regular shopper.

What age-group do you fall into?


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What do you do currently?

Interpretation: As per the survey, majority of the respondents are students & servicemen who fall
in the above mentioned age groups who are the powerful internet users in the country

Are you a frequent online shopper?

Interpretation: As per the data collected, 57% of the people are regular online customers,
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these are mainly working people who do not have time to go to shop and make purchase
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and also the younger generation are depended on online purchase as they seek variety of
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alternatives for the same product. 43% of the people are not regular online customers

because the quality of the products cannot be known and some people are not flexible to

shop online.

Which platform do you prefer for your online shopping?

Interpretation: The data indicates that most people find it convenient to shop with

mobile application rather than the official website version.

What is your most preferred mode of payment while you


purchase from online?
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Interpretation:
lAs per the survey, the most preferred mode of payment is CoD

lOther preferences like Debit/Credit card payment & Net banking is slowly gaining
momentum.

What is your most preferred online shopping site?

Interpretation: As per the data collected, vast majority of respondents prefer Amazon to do
their online shopping

Which online store has a better & effective mobile app layout for your
ease of shopping?
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Interpretation: As per the survey, 86% of the respondents prefer the Flipkart mobile

app over Amazon’s because it eases the shopping experience of the customers.

When do you mostly shop from your preferred online store?


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Interpretation: As per the survey, online shopping is most preferred by the customers at

the time of availability of ‘offers and discounts’. A very few percentage shop regularly

Which is the most frequently purchased product from your preferred


online store?
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Interpretation:

lClothing: As per the research conducted, 34% of the people purchase clothes from

Flipkart because of their good quality & 24% of the people purchase clothes from

Amazon.

lFootwear: The study shows that 20% of the people prefer Flipkart to purchase foot

wears as fashionable footwear’s are available for both men and women & just 10%-14%

of the people choose Amazon to have trendy & stylish foot wears. Electronics: As per the

survey conducted, 30%-16% of the people choose Flipkart to purchase electronic items

as good discounts are provided. And, only 8% people purchase electronics from

Amazon.

Kitchen and home appliances: As per the information collected, 8%-6% of the people

purchase kitchen and home appliances from online and it may only include those products

which are not easily available in shops and also the other reason may be that the online price

is less than ordinary shopping price. Overall only 22% people purchase kitchen and home

appliances through online. One reason will be that they are addicted to purchase these

products through shops. lAccessories and cosmetics: As per the research, 10%-8% people

prefer Amazon to purchase

these products may be due to the fashionable trend provided by them. And
only 6%-2% of the people choose other sites to purchase these products, as they do not provide

branded items in this sector. Overall only 34% people prefer online sites to purchase accessories

and cosmetics. Because these products are easily available on the near-by shops and more over

people do not have patience to wait for these products until they are delivered to them.
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Which online store has products at a lower price as compared to the


other?

Interpretation: As per the survey, majority of the respondents prefer Amazon over Flipkart for
giving best bang for their buck & helps them to save a bit extra on purchases.

Which online store has a better product display & description?

Interpretation: As per survey, the Both Flipkart & Amazon have good product
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visibility & detailed description (like price, discount & offers, pictures, feel,
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specifications, dimensions, contents of package, etc.) But, Flipkart has a slight edge

over Amazon.

Which online store has a variety of product choices in-terms of sorting &
filtering as per individual requirements & seller ratings?

Interpretation: As per the data collected, Amazon stands out to be the provider of a

variety of product choices which allows shoppers to sort & filter out products according

their requirements (like gender, age, price, availability, size, features, colour, etc.) &

seller ratings given by other customers.

Which online store gives you a better customer feedback, rating &
reviewing system?
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Interpretation: As per the survey, 63% respondents indicate that Flipkart has better

customer feedback, rating & reviewing system over Amazon.

Which online store ha a better customer-friendly ‘exchange/ return/


replacement and/or refund policy’?

Interpretation: 76% respondents find Flipkart’s ‘Exchange/Return/Replacement & Refund


policy’ more convenient & customer-friendly in comparison to 24% respondents who feel
otherwise.

Which online store has a swift delivery system?


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Interpretation: As per the survey, vast majority of respondents prefer Amazon’s swift

product delivery system over Flipkart.


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CHAPTER 5
CONCLUSION
AND
RECOMMENDATIONS
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CONCLUSION

This research shows that online shopping is having very bright future in India. With the

use of internet, consumers can shop anywhere, anything and anytime with easy and safe

payment options. Consumers can do comparison shopping between products, as well as,

online stores. Online shopping even after gaining popularity won’t completely eliminate

traditional shopping. There are still areas where we prefer to go into a shop and select

items. The advent of plastic money and the tremendous usage of debit and credit cards

have brought shops from around the world to the tip of customers’ finger or to the

website. But there’s no going back, and online shopping will become an even more

crucial part of our lives, growing more sophisticated with each passing year. Over all

the factors from the internet that influenced or prevented online consumer behaviour

and attitude need to be carefully concerned by the online retailers, who can utilize the

appropriate marketing communications to support the customers purchase decision

making process and improve their performance.

RECOMMENDATIONS
 Amazon needs to improve its mobile application for improving the shopping

experience of their customers & to attract more customers.

o EMI facility can be implemented at the time ‘sale’ to increase the tendency of
shopping.

 Amazon has wide range of products but it should work on improving its after-sales

service by tweaking some of its customer relations policies & by better training of

their customer agents.


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 Amazon should improve the product visibility, description & display to make the
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shopping experience more intuitive.


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 Flipkart has good service quality but should work on lowering its product cost to be

more competitive.

 Flipkart should focus on increasing the variety of products available for

all social & demographic groups.


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RFERENCES
 www.flipkart.com/slideshare

 www.amazon.in/slidshare

 http://www.thehindu.com/business/Industry/govt-permits-100-per-cent-fdi-in-
online-

market-places/article8409495.ece

Research Papers:
 IMPACT OF DEMOGRAPHIC FACTORS OF
CONSUMERS ON ONLINE SHOPPING BEHAVIOUR: A
STUDY OF CONSUMERS IN INDIA- Dahiya Richa

http://scienceandnature.org/IJEMS-Vol3(1)-Jan2012/IJEMS_V3(1)7.pdf

 The influence of online store beliefs on consumer online impulse buying: A


model and empirical application-Willemijn van Dolen b

http://www.verhagen.com/publications/online-impulse-
buying_files/Verhagen_and_Vandolen2011.pdf

 How buyers' expected benefits, perceived risks, and e-business readiness


influence their e-marketplace usage Subba Rao, Truong, Senecal and Le,
(2007)

https://www.sciencedirect.com/science/article/abs/pii/S0019850106001477

 Determinants of Shopper Behaviour in E-tailing: An Empirical Analysis-


Prasad and Aryasri (2009)
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https://www.researchgate.net/publication/
285670001_Determinants_of_Shopper_Behaviour_in_E- tailing_An_Empirical_Analysis

 The Influence of Cultural Factors on Consumer Buying Behaviour and an


Application in Turkey By Dr. Yakup Durmaz

https://globaljournals.org/GJMBR_Volume14/4-The-Influence-of-Cultural-Factors-on.pdf
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