Customer Satisfaction in Amazon Shopping
Customer Satisfaction in Amazon Shopping
[Link]
CHAPTER 1
1.1. INTRODUCTION
We face many millions of problems when we entered into the world of online
shopping. Amazon also one of the online shopping applications site that nowadays
reached to millions of people everywhere. There are some problems that customer
are deals with like:-
Delay in delivery of Goods and Products is also one of the problems that
affect the serenity of the customer.
The product which customers are choosing might be delivered wrong like,
different in color or design etc.
Some goods or product, which customer needs may not be available sometimes.
Or occasionally the product will not be currently available to the address of the
customer.
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To study the gratification level of the Amazon customer based on the respondent
responses.
To evaluate and find out the factor that influences the customer complacency.
This research work will covered Amazon and also deals with the customers which
are regulars used to shopping from Amazon.
The study also covered the quality of the service and how they impact on the
customer complacency and for instant it come across with what factor that are
accommodate and enhance the satisfaction feeling of the customer on Amazon.
The main importance to this study is to avoid some uncertainty fact that
customer face in online shopping.
When the research will be completed it will give an insight into a practical situation.
It will also indicate, how to conquered and overcome the problem while
dealing with the customer.
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Finally, it is also intend to facilitate the efforts of Amazon to come out with
good quality service customer satisfaction strategies.
The response from the sample may be biased, or may contain cooked up from the
respondent.
Another limitation was the relatively short period and within which this
research was carried out.
Questionnaires method is used only for data collection and the limitation of
the questionnaire method is applicable to the study.
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Chapter 2
Industrial Profile
Introduction
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Online stores typically enable shoppers to use "search" features to find specific
models, brands or items. Online customers must have access to the Internet and a
valid method of payment in order to complete a transaction, such as a credit card,
an Interact-enabled debit card, or a service such as PayPal. For physical products
(e.g., paperback books or clothes), the e-trailer ships the products to the customer;
for digital products, such as digital audio files of songs or software, the e-trailer
typically sends the file to the customer over the Internet. The largest of
these online retailing corporations are Alibaa , [Link], and eBay.
The growth of the internet as a secure shopping channel has developed since 1994,
with the first sales of Stingalbum ‘Ten Summoner’s Tales’. Wine chocolates and
flowers soon followed and were among the pioneering retail categories which
fueled the growth of online shopping. Researchers found that having products that
are appropriate for e-commerce was a key indicator of Internet success. [ Many of
these products did well as they are generic products which shoppers didn't need to
touch and feel in order to buy. But also importantly in the early days there were few
shoppers online and they were from a narrow segment: affluent, male, 30+. Online
shopping has come along way since these early days and
-in the UK- accounts for significant percents (depending on product category as percentages
can vary).
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With the better access to the Internet e-commerce is also taking a root in India;
however, it is still in its infancy. The emergence of middle class with good
purchasing power is also an important reason for the growth of e-commerce in
India. In addition to this the schemes of government like Startup India, Make in
India and Digital India and policies like cashless India are also affecting the e-
commerce in India. In this assignment, we are looking into various e-commerce
business models.
PAYMENT
Online shoppers commonly use a credit card or a PayPal account in order to make
payments. However, some systems enable users to create accounts and pay by
alternative means, such as:
Some online shops will not accept international credit cards. Some require both the
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purchaser's billing and shipping address to be in the same country as the online
shop's base of operation. Other online shops allow customers from any country to
send gifts anywhere. The financial part of a transaction may be processed in real
time (e.g. letting the consumer know their credit card was declined before they log
off), or may be done later as part of the fulfillment process.
PRODUCT DELIVERY
Once a payment has been accepted, the goods or services can be delivered in the
following ways. For physical items:
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1. Online Subscriptions
3. Deals Websites
4. Marketplace
Online Subscriptions
These websites work like an offline subscription. Here the users can choose
from subscriptions available on the website and subscribe according to their
needs. The payment for subscription can be made online and also the recurring
payments can be made in the same manner and the consumer can get the
services.
Hence, online payment for the service is the pressure point here. This makes the
services more accessible and easier payment options make it more attractive to
the users.
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In India magazines like Frontline can be subscribed online and so can the
newspapers like The Hindu. [Link] has also started the monthly subscription
service where it provides the consumers the option of monthly subscription with
discounts from normal rates and the consumers can pay the subscription fees on
their website.
Here the brands create their own online brand stores. The brand’s catalog is
uploaded on the website where the consumers see it which is also available in their
physical stores. Here the consumers get the advantage of shopping from their
trusted brands online without having to visit the physical stores.
Examples of online exclusive brand stores are HP, Samsung, Peter England, Monte Carlo
etc.
Deals Websites
There are various ecommerce websites which provide the best deals to the
consumers. Such websites give the consumers various deals available on other
websites or stores. For example [Link] etc.
Marketplace
Here the consumers and sellers are provided with a platform to interact with each
other. Based on this there are various websites with different models that they
follow. These models are:
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This is the most common business model that usually people know about. Here the
sellers of products or services, as well as the buyers of such products or services,
are present on an online platform. Virtual stores give the consumers access to wider
variety of products at cheaper rates. The best example for this is [Link],
[Link], [Link], [Link] etc where the consumers can find almost
anything be it books, electronic products like washing machines, USB storage
devices, clothes, shoes or personal care etc.
In India the B2C model is growing at a fast pace, however, there are still various
challenges. The major challenge is poor internet connectivity. Also most consumers
do not possess credit cards. Most consumers still depend on cash on delivery mode
of payment. In addition to this the ecommerce websites do not have very good
customer services leaving the consumers doubtful about using these websites and
apps.
here both the parties are involved in business activities. Here commercial
transactions take place between both the parties. The parties involved can be a
manufacturer and wholesaler or a wholesaler and retailer. In India the B2B model
has 100% Foreign Direct Investment allowed through automatic route, unlike the
B2C model. However, this model is still in its nascent stage in India. Online
business transactions in India are limited and the market is less receptive. However,
the experts do believe that this situation shall change in coming times and the B2B
ecommerce space is expected to grow almost
2.5 times by 2020.
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Here both the parties are individuals undertaking a business activity on a platform.
Here the individual can sell something they no longer need or can sell products
made by them as they engage in a small home based business activity like bags or
some handicraft items. The best example of this model in India is [Link],
[Link], [Link] etc.
OLX and Quikr are almost alike and provide a platform to the consumers to
connect and buy and sell anything be it land, flats, paying guest facilities, mobiles,
laptops, bikes, bicycles etc. The companies have become very successful and work
as electronic classifieds.
In this model the consumer sell their products and services to businesses. The best
examples for this model are the job portals. In India websites like [Link],
[Link] etc can be put in this category. Here the consumer, the job seeker,
puts her resume on the website in order to get a job offer from employers.
The ecommerce business models are selected by the companies as per their
objectives, desired results and target consumers. There can be modifications done
in these business models as per the requirement of the companies.
Conclusion
We have seen various types of ecommerce models that are prevalent and the
examples of such models in Indian context. Indian economy is growing at a very
fast pace and as such the new avenues like ecommerce is here to stay and grow in
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India. However, there are various challenges that must be overcome in order to
make ecommerce efficient in India.
The major problem is poor e-infrastructure. The internet in India is still not very
easily accessible. The penetration of internet is very low at 34.8% of the total
population, as compared to other countries. Also the ecommerce companies face
logistic issues. As a start up this issue is more pressing. In addition to this the long
held habit of Indian consumers to see and inspect what they are buying makes them
doubtful of the ecommerce. Also the major part of ecommerce business is limited
to the urban areas and excludes the rural areas and the major portion of the
population is still rural hence, there is a need to make ecommerce inclusive of rural
areas and population. Hence, there is a need to frame a strategy to make the Indian
economy more conducive to the new and upcoming ecommerce market and
accommodate in the economy.
COMPANY PROFILE
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Amazon has separate retail websites for the United States, the United Kingdom and
Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil,
Japan, China, India, and Mexico. In 2016, Dutch, Polish, and Turkish language
versions of the German Amazon website were also launched. Amazon also offers
international shipping of some of its products to certain other countries.
In 2015, Amazon surpassed Wal-Mart as the most valuable retailer in the United
States by market capitalization. Amazon is the fourth most valuable public
company in the world (behind only Apple, Alphabet, and Microsoft), the
largest Internet company by revenue in the world, and after Walmart, the second
largest employer in the United States. In 2017, Amazon acquired Whole Foods
Market for $13.4 billion, which vastly increased Amazon's presence as a brick-and-
mortar retailer. . In 2018, for the first time, Jeff Bezos released in Amazon's
shareholder letter the number of Amazon Prime subscribers, which at 100 million,
is approximately 64% of households in the United States.
1. Global reach
2. Customer-centric approach
3. Widest selection of products
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Amazon’s mission statement is “We strive to offer our customers the lowest
possible prices, the best available selection, and the utmost convenience.” This
corporate mission promises attractive e- commerce services to satisfy target
customers’ needs. The company focuses on the variables of price, selection, and
convenience. In this regard, the following characteristics are identifiable in
Amazon’s corporate mission statement:
1. Lowest prices
2. Best selection
3. Utmost convenience
HISTORY
The company was founded as a result of what Jeff Bezos called his "regret
minimization framework," which described his efforts to fend off any regrets for
not participating sooner in the Internet business boom during that time. In 1994,
Bezos left his employment as vice-president of D. E. Shaw & Co., a Wall Street
firm, and moved to Seattle, Washington, where he began to work on a business
planfor what would become [Link].
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sinister. The domain is still owned by Bezos and still redirects to the retailer.
Choosing a name
Bezos selected the name Amazon by looking through the dictionary; he settled on
"Amazon" because it was a place that was "exotic and different", just as he had
envisioned for his Internet enterprise. The Amazon River, he noted, was the
biggest river in the world, and he planned to make his store the biggest bookstore in
the world.[21] Additionally, a name that began with "A" was preferential due to the
probability it would occur at the top of an alphabetized list. Bezos placed a
premium on his head start in building a brand and told a reporter, "There's nothing
about our model that can't be copied over time. But you know, McDonald's got
copied. And it's still built a huge, multibillion-dollar company. A lot of it comes
down to the brand name. Brand names are more important online than they are in
the physical world."
After reading a report about the future of the Internet that projected annual web
commerce growth at 2,300%, Bezos created a list of 20 products that could be
marketed online. He narrowed the list to what he felt were the five most promising
products, which included: compact discs, computer hardware, computer software,
videos, and books. Bezos finally decided that his new business would sell books
online, due to the large worldwide demand for literature, the low price points for
books, along with the huge number of titles available in print. Amazon was founded
in the garage of Bezos' rented home in Bellevue, Washington. Bezos' parents
invested almost $250,000 in the start-up.
In July 1995, the company began service as an online bookstore. The first book
sold on [Link] was Douglas Hofstadter's Fluid Concepts and Creative
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Barnes & Noble sued Amazon on May 12, 1997, alleging that Amazon's claim to
be "the world's largest bookstore" was false because it "...isn't a bookstore at all. It's
a book broker." The suit was later settled out of court and Amazon continued to
make the same claim. Walmart sued Amazon on October 16, 1998, alleging that
Amazon had stolen Walmart's trade secrets by hiring former Walmart executives.
Although this suit was also settled out of court, it caused Amazon to implement
internal restrictions and the reassignment of the former Walmart executives.
Merchant partnership
Until June 30, 2006, typing [Link] into a browser would bring up
Amazon .com's "Toys & Games" tab; however, this relationship was terminated
due to a lawsuit. Amazon also hosted and managed the website for Borders
bookstores but this ceased in 2008. From 2001 until August 2011, Amazon hosted
the retail website for Target.
[Link] operates retail websites for Sears Canada, Bebe Stores, Marks &
Spencer, Mother care, and Lacoste. For a growing number of enterprise clients,
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As of October 11, 2017, Amazon Fresh sells a range of Booths branded products for
home delivery in selected areas.
Amazon .com's product lines available at its website include several media (books,
DVDs, music CDs, videotapes and software), apparel, baby products, consumer
electronics, beauty products, gourmet food, groceries, health and personal-care
items, industrial & scientific supplies, kitchen items, jewelry, watches, lawn and
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garden items, musical instruments, sporting goods, tools, automotive items and toys
&games.
Amazon is now gearing up in India to play a role in the grocery retail sector aimed
at delivering customer needs.
Amazon Fresh
Amazon Prime
Alexa
App store
Amazon Drive
Echo
Kindle
Fire tablets
Fire TV
Video
Kindle Store
Music
Music Unlimited
Amazon Studios
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Amazon Wireless
WEBSITE
The domain [Link] attracted at least 615 million visitors annually by 2008.
Amazon attracts over 130 million customers to its US website per month by the
start of 2016. The company has also invested heavily on a massive amount of
server capacity for its website, especially to handle the excessive traffic during the
S
Region Sovereignty Domain name ince
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Amazon allows users to submit reviews to the web page of each product.
Reviewers must rate the product on a rating scale from one to five stars. Amazon
provides a badging option for reviewers which indicate the real name of the
reviewer (based on confirmation of a credit card account) or which indicate that the
reviewer is one of the top reviewers by popularity. Customers may comment or
vote on the reviews, indicating whether they found a review helpful to them. If a
review is given enough "helpful" hits, it appears on the front page of the product. In
2010, Amazon was reported as being the largest single source of Internet consumer
reviews.
When publishers asked Bezos why Amazon would publish negative reviews, he
defended the practice by claiming that [Link] was "taking a different
approach ... we want to make every book available—the good, the bad and the
ugly ... to let truth loose".
There have been cases of positive reviews being written and posted by public
relations companies on behalf of their clients and instances of writers using
pseudonyms to leave negative reviews of their rivals' works.
The Amazon sales rank (ASR) provides an indication of the popularity of a product
sold on any Amazon locale. It is a relative indicator of popularity that is updated
hourly. Effectively, it is a "best sellers list" for the millions of products stocked by
Amazon. While the ASR has no direct effect on the sales of a product, it is used by
Amazon to determine which products to include in its bestsellers lists. Products
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that appear in these lists enjoy additional exposure on the Amazon website and this
may lead to an increase in sales. In particular, products that experience large jumps
(up or down) in their sales ranks may be included within Amazon's lists of "movers
and shakers"; such a listing provides additional exposure that might lead to an
increase in sales. For competitive reasons, Amazon does not release actual sales
figures to the public. However, Amazon has now begun to release point of sale data
via the Nielsen Book Scan service to verified authors. While the ASR has been the
source of much speculation by publishers, manufacturers, and marketers, Amazon
itself does not release the details of its sales rank calculation algorithm. Some
companies have analyzed Amazon sales data to generate sales estimates based on
the ASR, though Amazon states:
Please keep in mind that our sales rank figures are simply meant to be a guide of
general interest for the customer and not definitive sales information for publishers
—we assume you have this information regularly from your distribution sources.
Chapter-3
Review of Literature
In this research we are considering some literature review based on some articles
which is related to the title of the study.
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and hassle free shopping. and also Age, gender, professional, occupation,
family structure and ICT familiarity are found as the critical factor for
preferring Online shopping.
CHAPTER 4
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1.4.1. RESERCHDESIGN
The data are collected from the secondary data and there is no other information
which collects from primary source. The internal sources of secondary data
where the data is collected:-
Sales Report
Financial Statements
Company information
There are several external sources from where the secondary data are collected. These are:
Government censuses, like the population census, agriculture census, etc.
Information from other government departments, like social security, tax records, etc.
Business journals
Social Books
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Business magazines
Libraries
RESEARCH INSTRUMENT
For the purpose or the merits of this Research work questionnaire and interviews
were used a questionnaire is list of highly structured question written and handed
over to respondents to provide relevant answers or solution to the questions. An
interview is structured or unstructured way of obtaining information on a focus
content.
The two type of questionnaire were used in the project. These are the open- ended
and close- ended of question.
Open-ended questions do not limit the respondents’ to select answer from arrange
of alternative’s or simple answer categories for each question but to represent their
own subjective news about issues freely. This allowed respondents to provide
answer to own way or opinions freely.
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For the purpose of analysis data as a way of comparing, contrasting and describing
such data, descriptive statistics was used.
The collect was enhanced pictorially in the presentation with the aid of the tables,
chart and graphs.
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CHAPTER 5
INTRODUCTION
This chapters show the presentation and analysis of data collect from questionnaires
administered to get sample opinions the customers and members who patronize the
service of Amazon. They include the profile of respondents, and level of consumer
expectation towards the service quality and customer satisfaction in Amazon.
The analysis and presentation of data collected is a true reflection of the customers.
The analysis is been presented in the form of chart tables and graphs.
Table No 1.
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INFERENCE:
This table shows the numbers of males and females’ respondents, 47% of the
respondents were found to be males, with the females constituting 53% from the
various area or places. This means majority of the respondents were female.
Chart.1
No of Respondent
MALE
23%
TOTAL
50%
FEMALE
27%
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Table.2
Age Distribution of Respondent
[Link] Age range No of respondents Percentage
1 15-14yrs 12 10%
2 20-29yrs 42 35%
3 30-39yrs 12 10%
4 40-49yrs 30 25%
5 50-59yrs 24 20%
Total 120 100%
INFERENCE:
From the above table the majority of the respondent are came from the age range of 20-.29.
45
40
35
30
25
20
15
10
5
0
15-14yrs 20-29yrs 30-39yrs 40-49yrs 50-59yrs
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TABLE 3
INFERENCE:
From the above table the majority of the respondent was collected from the students
with a percentage of 40%, and the lowest response was collect from Govt.
Employees with a percentage of 10%.
Chart No.3
Profession
Students Business
Private Employees Govt. Employees
10%
40%
30%
20%
TABLE 4
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INFERENCE:
From the above table, the majority of the respondents say that they are using the
product of Amazon for more than one year.
Chart no.4 .
45
40
35
30
25
20
15
10
5
0
Less than 1month 1-6 Month 6-12month More than 1year
TABLE NO.5
2. How much time you spend on online shopping?
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INFERENCE:
From the above table 10% of respondent are spending everyday on online shopping
and 20% of respondent are spending twice a month in online shopping.10% of
respondent are spending once a month on online shopping, and weekly once only
30% and 10% on everyday basis.
Chart no.5
40
30
20
10
0
ay th nc
e th th
r yd on O on on
m m m
Ev
e a kly a 3
ice ee ce or
Tw W On y2
er
Ev
TABLE NO.6
3. What are the main reasons you preferred Amazon for shopping?
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INFERENCE:
The majority of the respondent is that, the reason for preferred Amazon shopping is
based on the fast delivery of the product to the customers.
Chart no.6
40
35
30
25
20
15
10
5
0
Less price Good qualityFast delivery Standard More option
Table no.7
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RESPONDENT
1 Under 500 12 10
2 501-1000 24 20
3 1001-1500 36 30
4 1501-2000 12 10
5 Above than 2000 36 30
total 120 100%
Chart no.7
40
35
30
25
20
15
10
5
0
00 00 50
0
00
0 00
r5 10 1 2 20
de 1- 1- 1- an
Un 50 10
0
15
0 th
e
ov
Ab
Table no.8
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2 Product quality 24 20
3 Availability 36 30
4 Fast delivery 12 10
5 Fair deal 36 30
Total 120 100%
INFERENCE:
From the above table customers are purchased product from amazon based on
the availability and the fair deal of the service.
Chart no.8
40
35
30
25
20
15
10
5
0
s ty y y l
er ali lit er ea
o ff u l abi eliv i r d
d tq va
i d Fa
t an duc A ast
n o F
ou Pr
isc
D
Table no.9
6. What is the mode of payment you usually preferred the most?
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INFERENCE:
From the above data usually customer are preferred cash on delivery, which is more
preferable mode of payment.
Chart no.9
Mode of Payment
60
50
40
30
20
10
0
Credit card Debit card Cash on delivery Net banking other
Table no.10
INFERENCE:
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From the above data 25% of the respondent response that online shopping is
saving time and 20% says that they choose based on wide choices and 15%
response that ease to find product and 25% response that discount and offers and
15% response that home delivery.
Chart no. 10
30
25
20
15
10
5
0
e
ce
s ct er
s
er
y
e tim oi odu off le iv
v h pr
Sa ec d an
d
eD
id fin t m
W n o
to ou H
asy si c
E D
Table no.11
8. What is the uniqueness in service of Amazon which satisfied you as compared to
other shopping Applications?
[Link] PARTICULAR [Link] PERCENTAGE
RESPONDENT
1 Reasonable return or exchange 6 5
policy
2 Quality product 24 20
3 Fast delivery 42 35
4 Transaction security 12 10
5 others 36 30
Total 120 100%
INFERENCE:
From the above information, majority of the respondent have says that due to the fast
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delivery of Amazon service is the uniqueness as compared with other online shopping
application.
Chart no.11
40
30
20
10
0
t
rs
y
y
y
uc
r it
lic
er
he
od
liv
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ot
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cti
ch
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an
or
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rn
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as
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Table no.12
9. What are the sources which make you purchased product from Amazon?
3 Promotion emails 12 10
4 Print & broadcast Ad 6 5
5 Others 36 30
Total 120 100%
INFERENCE:
From the above information the sources which makes the customers purchased a product
through Amazon is Family and friend source.
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Chart no.12
45
40
35
30
25
20
15
10
5
0
t
ds
rs
s
d
en
ail
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Table no.13
10. Overall, what make you fully satisfied the most while shopping with Amazon?
[Link] PARTICULAR [Link] PERCENTAGE
RESPONDENT
1 Less price 12 10
2 Discount & offer 24 20
3 Fast delivery 36 30
4 Transaction 12 10
security
5 Quality product 36 30
Total 120 100%
INFERENCE:
From the above information, respondent are fully satisfied with the fast del very of Amazon,
and quality of the product as well.
Chart no.1
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40
35
30
25
20
15
10
5
0
e er y ity ct
ric off er ur du
p le iv c o
ss & d se r
Le nt st on yp
ou Fa cti la it
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Table.14
[Link] Questions Strongly Agree Neutral Strongly Disagree Total
Agree Disagree
1 Level of 72 24 4 6 14 120
satisfaction
Based on
price
Percentage (%) 60 20 3 5 12 100
2 Reasonable 60 24 12 12 12 120
return and
Exchange
Policy
Percentage (%) 50 20 10 10 10 100
3 Estimated 50 36 18 12 6 120
delivery
given at
time
Percentage (%) 35 30 15 10 5 100
4 Able to 60 24 24 6 6 120
retain or
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regular
customer
Percentage (%) 50 20 20 5 5 100
5 Overall 72 24 4 6 14 120
experience
in Amazon
Percentage (%) 60 20 3 5 12 100
Chart no.14
80
70
60
50
Level of satisfaction Based on
40 price
Reasonable return and Exchange
30 Policy
Estimated delivery given at time
20 Able to retain or regular
customer
10 Overall experience in Amazon
0
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CHAPTER 6
FINDING:
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SUGGESTION:
The researcher has made personal contact with the respondents who have purchased
products and services through online. It is concluded that most of the respondents
have a good opinion about online shopping, though there are so many problems to
be improved by the vendors and service providers
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CONCLUSION:
In the past, consumers had sufficient time to visit shopping centers, searching for
various products. Many consumers prefer bargaining and decide the purchases after
physical examination of the commodities.
The entire process can range from a few hours to weeks depending on the product,
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quantity, quality and source of purchase. Today there is radical change in the entire
scenario. Everything in today’s world is Internet oriented like Electronic Data
Interchange, E-Mail, E-Business and E- Commerce. E-Commerce is exchange of
information using network-based technologies. In the present high cost situation, e-
Commerce can be used as a competitive strategy. It successfully includes the entire
online process of developing, marketing, selling, delivering, servicing and paying
for products and services.
Online shopping is becoming more popular day by day with the increase in the
usage of World Wide Web known as www. Understanding customer’s need for
online selling has become challenge for marketers. Specially understanding the
consumer’s attitudes towards online shopping, making improvement in the factors
that influence consumers to shop online and working on factors that affect
consumers to shop online will help marketers to gain the competitive edge over
others.
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REFERENCES
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