Research Project
Research Project
ON
ONLINE SHOPPING HABITS OF
CUSTOMERS WITH REFERENCE OF
FLIPKART
1|P a ge
STUDENT DECLARATION
This is to certify that the project entitled “STUDY
ON ONLINE SHOPPING HABITS OF
CUSTOMER WITH REFERENCE OF
FLIPKART” under the guidance of “MS.
VANDANA JAIN” in partial fulfillment of the
requirement for the award of degree of BBA at
Government college of commerce and business
administration, Sector-50, Chandigarh. This is an
original piece of work and I have not submitted it
earlier elsewhere.
DATE: 18th April 2024
ADITYA
2132038/21
BBA VI SEMESTER
2|P a ge
ACKNOWLEGEMENT
I MASTER ADITYA express my sincere thanks to Dr. Sangam
Kapoor, principal of Government college of commerce and
business administration, who gave us opportunity to make a
project report and Ms. Vandana Jain for guiding me right from
inception till the successful completion of the project. I
sincerely acknowledge her for extending their valuable
guidance, support for literature, critical reviews of projects and
the report and above all the moral support she had provided to
me with all active support this project would not have been
possible.
ADITYA
BBA III (6TH SEMESTER)
2132038/21
3|P a ge
TABLE OF CONTENT
7 FINDINGS 75-77
8 SUGGESTIONS 78-79
9 LIMITATIONS 80-81
10 CONCLUSION 82-83
11 BIBLIOGRAPHY 84-85
12 QUESTIONAIRE 86-88
4|P a ge
CHAPTER.1
INTRODUCTION
5|P a ge
INTRODUCTION
One of the most popular non-store platforms of days for businesses
and individuals to conduct business is the Internet. Both new and
established businesses are occasionally building websites in response
to prevailing trends and requests that they embrace the idea that the
Internet is the best method to grow their profit margins. Having a
website is important for merchants since it may be used for sales,
customer service, public relations, advertising, and direct marketing.
A website is also transactional in nature. Over ten years have passed
since the inception of business-to-consumer electronic commerce.
Researchers and practitioners in the field of electronic commerce are
always trying to learn more about how consumers behave online.
6|P a ge
businesses the opportunity to enhance their reputations, grow beyond
their initial offerings, and increase sales of their flagship products.
Originally, branding was used in commerce, marketing, and
advertising to distinguish one person's cattle from another's using a
unique sign burned into the animal's skin with a hot iron stamp.
7|P a ge
For most firms, growing sales and revenue is the ultimate goal. The
ideal outcome is to draw in new clients and promote recurring
business. The degree to which consumers and future consumers are
aware of your company and its offerings is referred to as brand
awareness. The degree to which a brand is appropriately linked to a
certain product and is recognized by potential consumers is known as
brand awareness. In the initial months or years following a product's
launch, brand awareness typically expressed as a percentage of target
market is the main objective of advertising.
8|P a ge
Interactive digital medium – interactive television channels
9|P a ge
India currently has the third-largest Internet population in the world,
behind the US (275 million users) and China (575 million users), at
roughly 150 million users. With 150 million users overall, India's
Internet penetration rate is at 12%, compared to 43% in China and
80% in the US. Nonetheless, given its low penetration, India offers
the Internet industry an unrivalled development opportunity in the
years to come. According to our analysis, India's Internet sector is
expected to have a golden age from 2024 to 2029, with tremendous
development potential and secular adoption for online content, social
media, search, e-commerce, and advertising services.
Here is the India Internet outlook for 2024, the first year for this
golden period.
10 | P a g e
Emerging Technologies: Technologies like AI, blockchain, and
IoT gain traction, driving innovation across various sectors
including healthcare, agriculture, and finance.
Regulatory Changes: Government regulations evolve to keep
pace with the dynamic internet landscape, balancing innovation
with consumer protection and privacy concerns.
RETAILING
Terms Defined:
Discount houses- retail store that offers merchandise for sale at lower
prices than conventional stores that sell merchandise at list prices or
suggested retail prices.
12 | P a g e
INTRODUCTION TO ONLINE SHOPPING
13 | P a g e
wait in line at the pay register after locating the products she wants to
buy.
Even if it's more convenient, not everyone like to buy goods and
services online. For several individuals, the notion of physically
visiting a store and engaging in the purchasing experience is
appealing. They enjoy being around people, touching the
merchandise, and trying on clothes. Customers who shop online are
unable to interact socially or touch items. They are also prohibited
from taking the goods home the same day they are purchased.
Online purchases are completed instantly, giving you more time for
performing other tasks! Furthermore, online shoppers benefit from
courteous customer service agents who are accessible around-the-
clock, seven days a week, to help them find, buy, and ship their items.
This is not the case with physical stores.
14 | P a g e
discovered after researching literature on consumer attitudes
regarding online shopping.
1. Convenience
2. Time saving
15 | P a g e
Since it takes time to receive items or make deliveries,
consumers are not motivated to shop online by the unexpected
savings in time (Corbett, 2001). However, there are several
ways to view the time-saving aspect, such as this: "A person
living in Florida can shop at Harod's in London (online) in less
time than it takes to visit the local Burdines department store."
Thus, it is impossible to discount the significance of time
savings as a driving force behind online shopping. Furthermore,
Goldsmith and Bridges (2000) highlight the differences in
concerns between online and offline customers: online shoppers
prioritize convenience, time efficiency, and selection, whereas
offline shoppers prioritize security, privacy, and timely delivery.
3. Website design/features
16 | P a g e
4. Security
17 | P a g e
and other electronic platforms like the Internet. Technologies like
online transaction processing, supply chain management, Internet
marketing, mobile commerce, electronic funds transfers, electronic
data interchange (EDI), inventory management systems, and
automated data gathering systems are all used in electronic
commerce. Modern electronic commerce may involve a larger range
of technologies, including e-mail, mobile devices, social media, and
telephones, although it usually involves the World Wide Web at least
once during the transaction's lifecycle.
18 | P a g e
The primary drivers of this increase are the 20% annual growth in
Internet consumption, the adoption of 5G, the rise in smartphone
users, and the accessibility of the Internet on mobile devices. India is
thought to have 1.05 billion mobile Internet users at the moment. Due
to these and other causes including hectic schedules, heavy traffic,
limited time for in-store shopping, amazing online deals and
discounts, and the adoption of cutting-edge e-commerce models like
group buying and second-hand sales, an increasing number of
customers are turning to online shopping. The trend of rising middle
class wages, increased exposure to the global economy, and shifting
demographics (almost half of the population is under 25) also apply to
Tier II and Tier III cities.
20 | P a g e
CHAPTER.2
COMPANY
PROFILE
21 | P a g e
[Link]
History of [Link]
Flipkart was founded in 2007 by Sachin and Binny Bansal, both
alumni of the Indian Institute of Technology, Delhi. They worked for
[Link] before quitting and founding their own company. They
both were solid coders and wanted to open a portal that compared
different ecommerce websites, but there were hardly any such sites in
India and they decided to give birth to their own e-commerce venture
[Link].
Thus, was born Flipkart in Oct 2007 with an initial investment of 4
lac (co-founders’ savings). It was never going to be easy since India
had a bad past experience with e-commerce trading. It was not an
easy segment to break into, people were very particular in paying
money for something which they had not seen and received. The trust
was missing in the Indian customers. So, what Flipkart had to do was
to instil trust and faith in their customers. And they did exactly the
same later.
Initially they used word of mouth marketing to popularise their
company. 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, so 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. A few months later, the company sold its first
book on [Link], John Woods' Leaving Microsoft to Change the
World.
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
23 | P a g e
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.
Flipkart Today
Today, as per Alexa traffic rankings, Flipkart is amongst the top 20
Indian Web sites and has been credited with being India's largest
online bookseller with over 11 million titles on offer. The store started
with selling books and in 2010 branched out to selling CDs, DVDs,
mobile phones and accessories, cameras, computers, computer
accessories and peripherals, and in 2011, pens & stationery, other
electronic items such as home appliances, kitchen appliances,
personal care gadgets, health care products etc. Further in 2012,
Flipkart added A.C, air coolers, school supplies, office supplies, art
supplies & life style products to its product portfolio. As of today,
The Company started from 2 employees and now employs more than
4500 people.
[Link] 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, [Link] has also widened its
foray by entering into the emerging digital content market with the
recent launch ofFlyte, 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 ranks at the top 20 websites in India, spread
in 37 cities, with 11.5 million plus book titles, 14 different categories,
3 million plus registered users and sale of 30000 items a day. It
24 | P a g e
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
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. The company
opened its first warehouse in Bangalore and later on opened
warehouses in Delhi, Kolkata and Mumbai. Today the company
works with more than 500 suppliers. As on date more than 80%
orders of Flipkart are handled via warehouses which help 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, Amazon etc. The electronic market share is distributed
among them in different unknown proportions.
Flipkart had a revenue of 4 crore in FY 2008 - 2009, 20 crore in FY
2009 - 2010, 75 crore in FY 2010 - 2011, and the revenue for FY
2011 - 2012 which ends on 31 Mar 2012 had 500 crore. This is
indeed a massive growth.
25 | P a g e
EVOLUTION OF LOGOS
FUNDING
Initially funded by the Bansal’s themselves with 4 Lakhs (INR)
Flipkart has since then raised two rounds of funding from
venture capital funds Accel India (in 2009) and Tiger Global
Management (up to the tune of US$10 million) (in 2010).
26 | P a g e
Private equity firms Carlyle and General Atlantic are in talks to
jointly invest about $150 million to $200 million in Flipkart,
according to sources.
Acquisition
2010: WEREAD, a social book discovery tool. The stated goal
was to give Flipkart a social recommendation platform for
buyers to make informed decisions based on recommendations
from people within their social network.
2011: Mime360, a digital content platform company.
2011: [Link] is a Bollywood news site that offers
updates, news, photos and videos. Flipkart acquired the rights to.
Chakpak’s digital catalogue which includes 40,000
filmographies, 10,000 movies and close to 50,000 ratings.
Flipkart has categorically said that it will not be involved with
the original site and will not use the brand name
2012: [Link] is India's second largest e-retailer in
electronics. Flipkart has bought the company for an estimated
US$ 25 million.
2014: Flipkart acquired Myntra, a prominent online fashion
retailer in India, in a deal reportedly valued at around $300
million. This acquisition helped Flipkart strengthen its position
in the online fashion segment.
2016: Flipkart acquired Jabong, another major player in the
online fashion space, for an estimated $70-100 million. The
acquisition aimed to consolidate Flipkart's presence in the
fashion e-commerce market.
2017: Flipkart acquired eBay India's operations as part of a
broader funding round led by eBay. The acquisition helped
Flipkart expand its product offerings and customer base by
leveraging eBay's global marketplace expertise.
2018: Perhaps the most significant acquisition in Flipkart's
history occurred in 2018 when U.S. retail giant Walmart
acquired a majority stake in Flipkart for $16 billion. This deal
27 | P a g e
marked one of the largest-ever acquisitions in the e-commerce
sector and provided Flipkart with access to Walmart's resources
and expertise in retail.
TEAMS AT FLIPKART
Category Management
All this requires an extremely efficient supply chain and this is
where Category Management comes in. The folks at Category
Management are responsible for vendor relations and supply
management without which online shopping wouldn’t be what it is
at Flipkart.
* Developing Vendor Network across Country
* P&L Responsibility for various Product Categories
* Building Relations with Leading Brands and Manufacturers
* Market Research
* Managing Supply Chain for efficient sourcing
* Using Technology to Solve Problems
Catalogue
These guys build the look of every catalogue that is launched on
the website. From defining product specifications to ensuring all
product related content appears correctly on the site the team is
constantly working to ensure the customer can make an informed
purchase from us all the times.
Warehouse &Fulfilment Centre
Procurement in Flipkart is all about obtaining products that are the
best in “Quality”, from the right “Source” and in the shortest
possible “Time” to ensure “Customer Delight”. Warehousing in
Flipkart, on the other hand, is where these products are inspected
with a fine tooth-comb. Afterall, we have a promise to keep -
28 | P a g e
original products with original warranty. And this is all done with
the highest level of automation because for us, technology is
everything.
LOGISTICS
Flipkart ship a vast quantity of products and accessories in a single
day, which has no fixed record as Flipkart is a well-known e-
commerce brand in the country and expanded all over the country
in past years. At least 80% of these orders are shipped by our very
own, one-and-a-half year-old delivery team, Flipkart Logistics.
Customer Support
‘Customer delight’ is one of the USP of Flipkart. Flipkart want
their customer to have the best ever online shopping experience
when they are with them – and will do everything in our power to
ensure it. Though every employee at Flipkart is responsible for
giving the customer a great experience at all touch points, it is our
24X 7 customer support team that has succeeded in setting
unbeatable standards in the service industry.
FINANCE
Flipkart is a company that has gone from being a start-up to the
largest online retailer in the country. So can there be any doubt that
Finance plays a really important role in their development .
Talent Acquisition
Growing by leaps and bounds is not an exaggeration when it comes to
Flipkart. What was started by two people in 2007 has today become a
4500 strong company – and counting! In the last year alone, we have
added 4000 people to the team. With the demand for high quality
29 | P a g e
talent across departments showing no signs of slowing down, the
Talent Acquisition Group, or TAG as Flipkart like to call them, have
their hands full.
Human Resource
Flipkart as an organization has grown from strength to strength to
emerge as a leader today in the Indian e-commerce space. The pace
which we have maintained has been possible because of a high
Caliber, energetic and agile workforce. Today Flipkart attracts highly
talented professionals from across the industry and campuses alike -
the opportunity to innovate and exposure to a high-growth business
environment being our main attraction.
Being a de-centralized function, the team constantly interacts with
various business departments at all times in order to better understand
and cater to their HR needs. The team also builds strategic
relationships with the corporate functions to drive pan organization
initiatives.
The Human Resources team is responsible for the end-to-end HR life
cycle of an employee once they come on board. It is the HR team that
ensures that employees across departments and from various
backgrounds get to know and understand the Flipkart culture.
Creating a high level of employee engagement and helping them
develop as professionals is what keeps the HR team at Flipkart bus
30 | P a g e
customer’s account and can be used as a payment mode for all
forthcoming purchases on the portal. Expectedly, this amount will be
deducted from the balance in their account’s wallet.
They can keep track of your Wallet balance by either heading over to
their Flipkart account or viewing the wallet balance at the top.
However, if they run out of balance on their wallet before making a
purchase, Flipkart allows them to make a partial payment using your
Wallet and pay the remaining amount using other payment modes like
credit card, debit card, and net-banking. Flipkart does point out that
cash-on-delivery payment mode cannot be combined with a Wallet
payment.
As said earlier, there are other players in the country like Mobi Kwik
and Paytm* which offer online wallet services called ‘Mobi Kwik
Balance’ and ‘Paytm Cash’ respectively, indicating the impact of
unreliable payment gateways on online transactions in India. While
Mobi Kwik Balance allows customers to add money into their
account to allow multiple purchases like online recharge for prepaid
mobile phones, DTH and data cards, Paytm Cash allows you to store
money in a wallet for future transactions on its portal.
The company had recently claimed to ship around 20 units every
minute, with 65% of the purchases being made through Cash on
Delivery (COD). The company had also hoped to grow its sales by
more than tenfold this financial year.
Flipkart Success Factors
The site is very easy to navigate, which helps users to easily search
for the contents or products online, it even allows users to search by
using various filters like by price range, search by brands, by age
group, by hot-selling etc. If a certain product is not available or is out
of stock it even asks users to input its details & then when the
products is available the desired users are informed, this really helps
one connected to the products they are seeking & leads to repeat &
frequent purchases.
31 | P a g e
The Flipkart site is fast & powerful, i.e., if you Search any products
in the Flipkart search bar and you’ll find exactly what you looking in
likes no time &it’s very quick to process the payments & transactions
by a very efficient & flexible payment mechanisms of the portals.
Approximately 60% of orders are placed in cash on delivery system.
So, there is high possibility scams & frauds, so users have to have
their email account linked & with verified details & receives a
confirmation code message on their cell phones or email, after which
the users confirm the unique code& the transaction is processed &
usually get delivered in 2-3 business days on the confirmed mailing
address.
Flipkart manages to deliver the item in 2-3 business days. If the order
placed is not delivered in the specified time, immediate enquiry goes
to nearest supplier and the item becomes available. It will then be
delivered within 24 hours depending on the cause of delay.
Flipkart is continuously aiming to bring down the delivery time of
regular orders, in doing so it is investing in its own delivery system &
network, as the time to delivery is one of the important aspects of
selling products online as users want a fast turnaround time. An
excellent marketing strategy by Flipkart marketing team is to increase
the sales revenues & to optimize the user shopping experience &
increasing loyalty by repeat purchases.
The portals offer a good pricing offers & deals to its users by the
means of cash rewards, loyalty points, discounts, coupons, Frequent
buyer rewards points. It even offers goods relatively cheaper pricing
points than it is available in the physical market which in total helps
users save money & at the same time get benefited by the means of
reward points
32 | P a g e
Future Road Map
They will look at bigger investments in their supply chain and
technology.
Investment will be made in large warehouses and increased
automation of their process, so that the product is not delayed.
They intend to enter in to various new categories and expand
their current categories as well.
Everything except for groceries and automobiles will be
available on Flipkart in future.
To go further in the value chain, Flipkart is looking at
associations with a larger number of suppliers and partners, both
nationally and internationally.
Threats in future
There are no major foreseeable threats in the future. The company
has built a great brand name, they just have to maintain and
enhance the same. Need to keep introducing more products,
adapting to the changing needs of the customer with time. The
entry of [Link] in 2012 in the Indian e-commerce space has
been cited as a big challenge to Flipkart. However, Flipkart is a
respected Brand name in India and should be able to compete with
Amazon. Amazon being a very big company can bring in serious
competition to Flipkart, since Amazon can bear more losses in the
beginning to gain customer base. But again, Indian market is
growing at a rapid pace as access to internet increases and people
become more aware of e-commerce sites and start trusting the
same; hence Indian market is sufficiently big at-least for these two
giants to co-exist beneficially
33 | P a g e
CHAPTER.3
OBJECTIVES OF
THE STUDY
34 | P a g e
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 [Link].
35 | P a g e
CHAPTER.4
REVIEW OF
LITERATURE
36 | P a g e
INTRODUCTION
The first section of this chapter discusses the literature review done
for this study followed by the research design of this study in detail in
the second section. A literature review is a body of text that aims to
review the critical points of current knowledge including substantive
findings as well as theoretical and methodological contributions to a
particular topic. Literature reviews are secondary sources, and as
such, do not report any new or original experimental work. Also, a
literature review can be interpreted as a review of an abstract
accomplishment. Methodology is the answer to the why and how the
research was carried out in the first place. This increases the
possibility of receiving appropriate answers to the research questions
and derives valuable insights into the topic at hand. The main focus of
the methodology here is driven by primary research, thus undertaking
research that is novel in nature. Alongside this it highlights the
methods that would be put to use to explore this study. The choice of
research approach is the first topic discussed in this chapter, followed
by data collection, sample selection and data analysis.
REVIEW OF LITERATURE
Several researchers have carried out studies in their effort to examine
consumers’ online buying behaviour. For example, Bellman et al
(1999) investigated various predictors for whether an individual will
purchase online. These authors concluded that demographic variables,
37 | P a g e
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 behaviour, 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 (Modahl,
2000). Steinfield 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 (Gefen et al, 2003; Venkatesh and Brown, 2001; Yu
et al, 2005).
Concerning the factors that influence or hinder online shopping, Ernst
and Young (2000) reported that Internet users purchased online
because of good product selection, competitive prices, and ease of
use, but were concerned about shipping costs, lack of opportunity to
prior examining the products, as well as, the confidentiality of credit
card and personal information. Know and Lee (2003) explored
consumers’ concerns about payment security and its relationship to
online shopping attitude and actual purchases. They observed a
negative relationship between attitude towards online shopping and
concerns about online payment security. Consumers with a positive
attitude seem to be less concerned about payment security. Similarly,
popular literature cited ease of shopping comparison, low prices,
timely delivery, convenience, time saving, low shipping costs,
improved customer service, tax exempt status and speedy e-mail
response, as key reasons for the increase in online shopping (Lorek,
2003; Magee, 2003; Maloy, 2003; Retail Merchandiser, 2003)
38 | P a g e
HOT BARGAINS: TIPS TO FIGURE OUT TRAPS FROM THE
REAL VALUE DEALS
SUSHMITA CHOUDHURY AGARWAL, ET Bureau Apr 22, 2013
(The Economic Times)
Bargain, hot deal, steal... every day consumers are bombarded with
hundreds of seemingly promising offers. However, not every value
buys saves money; some can be costly mistakes. Here's how to figure
out the trap from the real deal. It's a great way to save on interest,
particularly if you aren't keen on paying the high rate for revolving
credit with your existing card. However, be warned that such a teaser
deal is typically temporary. If you don't pay the outstanding amount
within the offer period, you will be penalised with a higher interest
rate, possibly more than the one on your old credit card.
Straight cash discount instead of value-added promotion
The trouble with most value-added offers is that they come with
caveats. It could be for a limited period, or you may land discount
vouchers/coupons that don't appeal to you. What's not to like about
saving hard cash? The only drawback is that you are unlikely to find
such bargains at shopping malls. Hit standalone, smaller shops
instead.
A gadget bought at a discount of 80% on a little-known website
It really should not come as a surprise that you are being ripped off.
Online shopping promises discounts, but if just one player offers
rebates far more than its competitors, it should be a red flag. For
instance, the MRP on the HP Pavilion G6-2232TX laptop is nearly Rs
41,000, while Flipkart is offering it at Rs 38,342 and Laptop wale at
Rs 38,100. So how can an unknown player offer it at just Rs 8,200?
Other warning signs are an absence of credible contact information
for the company. If the website is legitimate, chances are you are
being peddled a counterfeit item.
39 | P a g e
Registering on private sale websites
To begin with, registration is free, so even if you never get lucky, all
you are wasting is time. The likes of [Link] and
[Link] hold short-term flash sales on unsold inventory at
luxury hotels and cruises, where you could land discounts of 40-70%.
Buying gold because the jeweller insists it's a good investment
Given the high making charges and issues with determining purity,
make sure that you buy jewellery solely for the love of bling. If
investment is the agenda, you would be better off buying gold
bars/coins or gold funds. The jeweller who promises you the moon
will be quick to list out caveats while buying it back.
Renting a car at the airport at a 10% discount
It may be the handiest option for travellers, but the airport is also the
most expensive place to rent a car, especially at foreign destinations.
Typically, you will shell out 12-15% more than the rental charges at
any off-site location, including at or near your hotel. Try to wrangle a
complimentary airport pick-up service from the hotel you've booked,
and then check with the concierge for rental rates, or book a car
online.
Accessories, perfumes and cosmetics from duty-free shops
These items, including designer watches and sunglasses, can be had
much cheaper online. For instance, perfumes costing $53-55 (around
Rs 3,000) at duty-free shops can be bought for around $50 (Rs 2,750)
on [Link], including shipping charges. Often, mall/high street
sales too offer a better deal. However, duty-free shopping continues to
be attractive when it comes to alcohol and cigarettes
40 | P a g e
ANALYSIS OF CONSUMER BEHAVIOUR ONLINE
Author: DejanPetrovic
Published: 2007
The report outlines about the most relevant behavioural characteristics
of online consumers and examine the ways they find, compare and
evaluate product information. Comparison of the newly collected
survey data with the existing consumer behaviour theory resulted in
detection of a number of issues related to a specific consumer group.
The purpose of this report is to translate these findings into a set of
implementation activities on strategic and technological level.
Execution of these recommendations will result in better conversion
of visitors into customers and encourage customer loyalty and
referrals.
The focus group of this study will be young adults aged between
eighteen and thirty-four interested in buying a mobile phone or a
related product.
Research by Shun & Yunjie (2006) showed that there are product
types, which are more likely to be sold online such as software,
books, electronics and music. Reason for this is that when purchasing
these types of products, one does not require personal inspection and
most, if not all features, can be outlined in the product description and
images. Most products in the mobile phone family belong to this
category.
According to the recent research on consumer behaviour on the
Internet users (Cotte, Chowdhury, Ratenshwar & Ricci, 2006), there
are four distinct consumer groups with different intentions and
motivations:
Exploration
Entertainment
Shopping
Information
41 | P a g e
Majority of young adults interviewed for purpose of this research
tend to be active information seekers. A high level of technological
confidence within this group tends to be an encouraging factor
when it comes to product information research online.
The following analysis presents both, focus group results and
behavioural theory in a parallel fashion divided into two main
research topics:
Information Retrieval and Search Patterns
Perception of Product Information Online
These two areas are mutually dependent and particularly important in
a market where consumers have the power to choose the right product
from a number of competing suppliers. Well-structured product
information that cannot be found easily online is as much of a
problem as is having easily accessible information that does not meet
the consumer’s expectations.
PetrovicDejan (2006) in his study on Analysis of consumer
behaviour online explained that the most relevant behavioural
characteristics of online consumers and examine the ways they find,
compare and evaluate product information. Comparison of the newly
collected survey data with the existing consumer behaviour theory
resulted in detection of a number of issues related to a specific
consumer group. The purpose of this report is to translate these
findings into a set of implementation activities on strategic and
technological level. Execution of these recommendations will result in
better conversion of visitors into customers and encourage customer
loyalty and referrals. The focus group of this study will be young
adults aged between eighteen and thirty-four interested in buying a
mobile phone or a related product.
Shun &Yunjie (2006) in their study showed that there are product
types, which are more likely to be sold online such as software,
books, electronics and music. Reason for this is that when purchasing
these types of products, one does not require personal inspection and
most, if not all features, can be outlined in the product description and
42 | P a g e
images. Most products in the mobile phone family belong to this
category. According to the recent research on consumer behaviour on
the Internet users (Cotte, Chowdhury, Ratenshwar& Ricci, 2006),
there are four distinct consumer groups with different intentions and
motivations:
Exploration
Entertainment
Shopping
Information
Daily updated collection of music videos and lyrics. Majority of
young adults interviewed for purpose of this research tend to be active
information seekers. A high level of technological confidence within
this group tends to be an encouraging factor when it comes to product
information research online. The following analysis presents both,
focus group results and behavioural theory in a parallel fashion
divided into two main research topics: Information Retrieval and
Search Patterns Perception of Product Information Online These two
areas is mutually dependent and particularly important in a market
where consumers have the power to choose the right product from a
number of competing suppliers. Well-structured product information
that cannot be found easily online is as much of a problem as is
having easily accessible information that does not meet the
consumer's expectations.
Anders Hasslinger; Selma Hodzic; Claudio Opazo (2008-02-01) in
their study they showed that developed into a new distribution
channel and online transactions are rapidly increasing. This has
created a need to understand how the consumer perceives online
purchases. The purpose of this dissertation was to examine if there are
any particular factors that influence the online consumer. Primary
data was collected through a survey that was conducted on students at
the University of Kristianstad. Price, Trust and Convenience were
identified as important factors. Price was considered to be the most
important factor for a majority of the students. Furthermore, three
43 | P a g e
segments were identified, High Spenders, Price Easers and Bargain
Seekers. Through these segments we found a variation of the different
factors’ importance and established implications for online book
stores.
STATEMENT OF THE PROBLEM
Analysis of Customer Perception towards online shopping on
[Link]. Basically, it is important to investigate the motivation
behind consumer purchase but it is equally important to find us how
the consumers form perception and behaviours towards online buying
because consumer perception towards purchasing online is a
conspicuous factor affecting actual buying behaviour. One of the
research projects is to work on factors that influence customers to buy
online from [Link], and have decided to study four factors such
as convenience, time saving, Website features, and security. And
along with this the study for out of stock on highly discounted items
also will be done.
However, customer’s willingness to purchase online could be affected
by one’s individual needs and these needs can be ‘Need for
cognition’. Taking these aspects into account, a survey is conducted
to know the perception towards online shopping on [Link]
44 | P a g e
geographical area that this study covers is majorly Chandigarh, New
Delhi and various other cities of different states in India.
45 | P a g e
CHAPTER. 5
DATA BASE&
METHODOLOGY
46 | P a g e
Meaning:
Research methodology is a way of explaining how a researcher intends
to carry out their research. It's a logical, systematic plan to resolve a
research problem. A methodology details a researcher's approach to the
research to ensure reliable, valid results that address their aims and
objectives. It encompasses what data they're going to collect and where
from, as well as how it's being collected and analyzed.
Questionnaire design:
The questionnaire was filled by 107 respondents. This questionnaire
was filled by every age group. The questions were categorized
according to dimensions of area and knowledge about urbanization,
some statements on which they agreed or not, impact of urbanization
on agriculture. I have used quantitative method for understanding the
responses of individuals.
Data collection:
PRIMARY DATA-
The primary data was obtained by administering survey
method, guided by questionnaire.
Questionnaire was made by google forms and was
circulated among the sample therefore sample taken for
the study is 107.
Face to face interaction were taken with vendors and asked
some questions.
SECONDARY DATA-
For this study the secondary data are collected through
various platforms like:
47 | P a g e
Secondary data are collected through internet especially
from Flipkart’s about section on their website
Review of articles being published on the topic in various
newspaper, books, magazines, journals etc.
SAMPLE SIZE-
107 Respondents
SAMPLE AREA-
Chandigarh
Mohali
New Delhi
Mumbai
SAMPLE POPULATION-
The population consist of Students of my college, my
friends, seniors of my college, employed workers, various
online friends staying in different states in India
Tools for analysis:
The main statistical tools used for collection and analysis of
primary data in this project are as follows:
Percentage
Pie charts
Table
Bar diagrams
48 | P a g e
CHAPTER.6
DATA ANALYSIS
AND
INTERPRETATION
49 | P a g e
Data analysis is the process of collecting, modeling, and analyzing data using
various statistical and logical methods and techniques. Businesses rely on
analytics processes and tools to extract insights that support strategic and
operational decision-making.
All these various methods are largely based on two core areas: quantitative and
qualitative research.
QUESTIONNAIRE QUESTIONS:
Q.1 Gender identity
OPTION NO. OF % OF NO. OF
RESPONSES RESPONSES
Male 72 67.3
Female 34 51.9
Prefer not to say 1 0.9
INTERPRETATION:
When taken the responses it was seen that survey was taken
by 107 people out of which it can be noticed that the survey is
taken mostly by MALES.
50 | P a g e
Q.2 Age
INTERPRETATION:
When responses were taken it was seen that out of 107
respondents 34 were from 15 to 20 age group, 49 were from 20
to 25, 5 from 25 to 30 age group, 19 were from Above 30 age
group. The age group between 15 to 25 participated actively in
the survey.
Q.3 WHAT IS YOUR OCCUPATION?
51 | P a g e
OCCUPATION NO. OF % OF NO. OF
RESPONSES RESPONSES
Student 34 31.8
Undergraduate 26 24.3
Graduate 9 8.4
Postgraduate 6 5.6
Employed 24 22.4
Homemaker 2 1.9
Other 6 5.6
INTERPRETATION:
Mostly Student category responds to the survey under which
34 person falls under this
52 | P a g e
AREA [Link] % OF NO. OF
RESPONSES RESPONSES
Daily 4 3.7
Weekly 19 17.8
Monthly 47 43.9
Rarely 37 34.6
INTERPRETATION:
A majority share among the respondents is used to shop
online on monthly basis and other than that there are 37
respondents who are used to shop online rarely. The least
share is given by the person who shops online on daily basis.
53 | P a g e
Q. 5 What device you use primarily use for online
shopping?
INTERPRETATION:
Majority of the respondent use their Smartphones while
shopping online.
INTERPRETATION:
31.8 percentage of people use Flipkart to shop online whereas
a majority share among respondents uses Amazon for
shopping online.
55 | P a g e
OPTIONS NO. OF % OF NO. OF
RESPONSES RESPONSES
1(Poor) 3 2.8
2 3 2.8
3 24 22.4
4 51 47.7
5(Excellent) 26 24.3
INTERPRETATION:
A majority share of respondents with 47.7 percentage are
satisfied with the platform they use for shopping where as
24.3 percent of respondents are totally happy with the
platform they use, whereas some respondents are neutral
towards the platform they use.
Q.8 Have you ever used Flipkart for online shopping?
56 | P a g e
RESPONSE NO. OF % OF NO. OF
RESPONSES RESPONSES
Yes 85 79.4
No 11 10.3
Maybe 11 10.3
INTERPRETATION:
Majority of people agreed on that yes that they have used
Flipkart for Online Shopping.
58 | P a g e
INTERPRETATION:
41.1 percentage of people use Flipkart to mainly purchase
Electronic Items
59 | P a g e
INTERPRETATION:
A majority share of people uses Cash on delivery while
shopping online.
60 | P a g e
INTERPRETATION:
Flipkart meet the needs for a majority number of respondents
regarding the payment option available on their website
61 | P a g e
INTERPRETATION:
The majority respondents are satisfied with security measures
for payments provided by Flipkart where as a large number of
respondents are on the neutral side
62 | P a g e
INTERPRETATION:
The majority respondents are satisfied with delivery time of
products ordered from Flipkart where as a large number of
respondents are on the neutral side.
63 | P a g e
INTERPRETATION:
Majority of people said very important very important for the
reviews and feedback while purchasing a product online.
64 | P a g e
INTERPRETATION:
Majority of respondents find it very easy or easy to explore
products on Flipkart, where as there are few people who face
difficulty to search products.
65 | P a g e
INTERPRETATION:
Majority of people said yes as they found the Flipkart app
user friendly
66 | P a g e
INTERPRETATION:
Most of the respondents are satisfied with the customer
service provided by Flipkart.
67 | P a g e
INTERPRETATION:
Majority of people said yes that they are satisfied with the
packaging quality in terms of protecting good.
68 | P a g e
INTERPRETATION:
Most of the person are satisfied with their overall shopping
experience on Flipkart.
69 | P a g e
INTERPRETATION:
The majority of respondents wants faster delivery option in
Flipkart, where few respondents suggested some other things
to Flipkart
70 | P a g e
INTERPRETATION:
Majority of respondents are likely to join Loyalty scheme
offered By Flipkart, while some of them declined to join it.
Q23. How likely are you to recommend Flipkart to a
friend or colleague?
RESPONSES NO. OF % OF NO. OF
RESPONSES RESPONSES
Very Likely 18 16.8
Likely 61 57
Unlikely 17 15.9
Very Unlikely 11 10.3
71 | P a g e
INTERPRETATION:
Majority of person are likely to recommend Flipkart to their
known ones.
SURVEY QUESTIONNAIRE
Interacted with many employees, students, homemaker,
etc. and asked them about what things they do while
shopping online and how they feel about when they shop
from Flipkart.
Firstly, asked gender and majority of people were males very
few females shared their experience.
Second question I asked was about their age, and majority
was found in the age group of 15-25 years old age group
What is their occupation? And majority of people were
Students.
Asked them about how frequently they shop online, a majority
of monthly customers were there who shop online on monthly
basis.
Next question was asked that What device they primarily use
while shopping online? Most of them use their smartphones to
shop online
Next question was asked about what platform they use for
their online shopping? A majority of people uses Amazon for
online shopping while they are minority in comparison to
amazon for Flipkart, E-bay etc.
72 | P a g e
Next question was about how would they rate the platform
they use for online shopping? Most of them were totally
satisfied with the platform they use.
I asked them about have they ever used Flipkart to shop
online? A majority said yes that they use Flipkart for their
online shopping
What Factors influence them to shop from Flipkart? Majority
answered they use it to avail discount offered by them.
What type of products you most frequently purchase from
Flipkart? Majority of people use it to get electronic items
Which payment method do you prefer while shopping
online? Majority answered they use COD Option.
Do you feel Flipkart offers enough payment options to meet
your needs? Majority of people said yes for this.
How satisfied are you with security measures provided by
Flipkart for online transaction? Most of them were satisfied
while some of them were neutral.
How satisfied are you with the delivery time of products you
ordered from Flipkart? Most of them were satisfied while
some of them were neutral.
When making a purchase decision on Flipkart, how
important are product reviews and rating? Most of them
found the reviews and feedback very important.
How easy is it for you to find products on Flipkart's Website
or app? Most of them found it easy.
Do you find Flipkart's website/app user-friendly? Most of
them yes for this.
73 | P a g e
How would you rate Flipkart's customer service resolving
your complaints and problems? Almost a same share of
peoples were satisfied while other share was on neutral side.
How would you rate Flipkart's packaging quality in terms of
protecting products during transit? Almost a same share of
peoples were satisfied while other share was on neutral side.
How would you rate your overall shopping experience with
Flipkart? Majority of them were satisfied from Flipkart.
What improvements would you like to see in Flipkart's
online shopping experience? Majority of people suggested
for faster delivery options.
Would you be interested in participating in loyalty programs
or reward schemes offered by Flipkart? Most of them said
yes that they are interested to participate into this.
How likely are you to recommend Flipkart to a friend or
colleague? Most of them are likely to share it to their known
ones.
74 | P a g e
CHAPTER.7
FINDINGS
75 | P a g e
FROM THE ABOVE ANALYSIS FOLLOWING
OBSERVATIONS AND FINDINGS ARE MADE:
1. 67.3 percent of the total respondents were male and 31.8
percent of the total respondents were female. Most
respondents were from 15-25 age group.
2. Most of the respondents were students i.e. 31.8 percent
and then 22.4 percent were employed.
3. Majority of respondents are those who shop online on
monthly basis.
4. 73.8 percent of people said they use smartphones while
shopping online, while 23.4 percent people uses laptop/pc
and the remaining one-use tablet for it.
5. 59.8percent of people use Amazon for their online
shopping and 31.8 percent people use Flipkart and rest of
them uses some other platform.
6. Majority of people i.e. 47.7 percent of people are satisfied
with the platform they use for online shopping.
7. Majority of people i.e.,79.3 percent of respondents said
they have used Flipkart for their online shopping.
8. Majority of people use Flipkart to avail discount offered
by them i.e 57 percent of respondents.
9. Maximum respondents use Flipkart to buy electronic
goods.
10. Most of the respondents use Cod option i.e., 38.3
percent of respondents.
12. Most of them agreed that Flipkart meet their needs by
providing various payment options,
13. 46.7 percent of people are satisfied with security
measures for payment provided by Flipkart.
76 | P a g e
14. 45.8 percent of people are satisfied with the delivery time
of product provided by Flipkart while 31.8 are on neutral side.
15. Majority of people said that they find the reviews and
feedback very important while making a purchase.
16. Majority of people said it’s easy to find products on
Flipkart i.e., 51.4 percent of people.
17. 88.8 percent of people found Flipkart’s App/Website user
friendly.
18. 34.6 percent of people are satisfied with customer service
of Flipkart while 33.6 percent of people are on neutral side.
19. 34.7 percent of people are satisfied with packaging
quality of product in terms of protection while 32.7 percent
on neutral side.
20. 40.2 percent of people are satisfied with overall shopping
experience on Flipkart.
21. 43.9 percent of people suggests for faster delivery option,
27.1 percent for improved customer services and 26.2 percent
for better product quality control, while 2.7 percent of people
suggest some other things.
22. 57.9 percent of people are interested to join Loyalty
offers/scheme offered by Flipkart.
23. 57 percent of people are likely to recommend Flipkart to
their known ones,
77 | P a g e
CHAPTER.8
SUGGESTIONS
78 | P a g e
1. 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 better
brand management, multiple copies exist of same
products so difficult to find original product.
2. Flipkart must work on Faster delivery options so the
product can reach the customer on urgent basis as per
their requirement.
3. Flipkart must work on improved customer service to
protect or help customer from any fraud or scams etc.
4. Flipkart must work on product quality control by
analysing the quality of product before listing it on their
platform.
5. Flipkart must work on price management as there are
different price of same product from different seller.
6. Flipkart must only promote authentic product in terms
of durability for customer experience or satisfaction.
7. Out of stock items can made available as soon as
possible and intimate the needed customers.
79 | P a g e
CHAPTER.9
LIMITATIONS
80 | P a g e
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.
81 | P a g e
CHAPTER.10
CONCLUSION
82 | P a g e
Based on a research of consumer behaviour, the
comprehensive study offers valuable insights into the
perceptions of consumers when they purchase online.
Before making a purchase, consumers consider a
variety of factors in an effort to please themselves. If a
company meets their expectations, they will be happy.
Flipkart has a strong overall brand value, yet it faces
fierce competition from major international players like
eBay and Amazon. Talking about domestic market i.e.,
India, it is the most superior E-business portal which is
aggressively expanding & planted 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!
Pay close attention to your customers, and build
amazing experience for the customer.
83 | P a g e
CHAPTER.11
BIBLIOGRAPHY
84 | P a g e
JOURNAL AND MAGAZINE:
Arnold, E.J. and Willendorf, M. “Market-oriented
Ethnography: Interpretation Building and
Marketing Strategy Formulation,” Journal of
Marketing Research.
ANALYSIS OF CONSUMER BEHAVIOUR ONLINE
Author: DejanPetrovic
HOT BARGAINS: TIPS TO FIGURE OUT TRAPS
FROM THE REAL VALUE DEALS
WEBSITES:
[Link]
[Link]
[Link]
[Link]
85 | P a g e
CHAPTER.12
QUESTIONNAIRE
86 | P a g e
QUETSTIONAIRE
87 | P a g e
11. How satisfied are you with the delivery time of
products you ordered from Flipkart?
12. When making a purchase decision on Flipkart,
how important are product reviews and rating?
13. How easy is it for you to find products on
Flipkart's Website or app?
14. Do you find Flipkart's website/app user-
friendly?
15. How would you rate Flipkart's customer
service resolving your complaints and
problems?
16. How would you rate Flipkart's packaging
quality in terms of protecting products during
transit?
17. How would you rate your overall shopping
experience with Flipkart?
18. What improvements would you like to see in
Flipkart's online shopping experience?
19. Would you be interested in participating in
loyalty programs or reward schemes offered by
Flipkart?
20. How likely are you to recommend Flipkart to a
friend or colleague?
88 | P a g e