A PROJECT REPORT

ON

“IMPACT OF E-COMMERCE ON INDIAN MARKET”

Submitted In Partial Fulfillment of Award of the Degree Of

BACHELOR OF BUSINESS ADMINISTRATION
(SESSION 2016-2019)

DRONACHARYA PG COLLLEGE OF EDUCATION RAIT, BBA DEPARTMENT

HP UNIVERSITY, SHIMLA
SUMMER HILL, 171005
Feburary, 2019

Supervised By: Submitted By:

PARMOD KUMAR

5161530019

1
 UNDERTAKING

I declare that the work presented in this project titled “Impact of e-commerce on Indian
market” submitted to the university school of business study. H.P. university.
Shimla for the award of the bachelor of business administration degree is my
original work. I have not plagiarized or submitted the same work for the
award of any other degree in case this undertaking is found incorrect, I
accept that my degree may be unconditionally withdraw.

February,2019
kangra

Parmod kumar

2
Preface

3
 CERTIFICATE

Certified that the work contained in the project titled “Impact of e-commerce
on Indian market”, Mr. Parmod kumar , BBA 5th Semester Roll No.
has been carried out under my supervision and that this work has not
been submitted elsewhere for a degree.

Name of the guide/supervisor: Mrs. Kusum

Designation:

Date:

4
 ACKNOWLEDGEMENT

I take upon this opportunity to acknowledge the many people whose

I am deeply indebted to my mentor
I would like to thank
I further thank to
I owe my sincere gratitude towards
My heartfelt thanks to

Finally I would like to wind up by paying my heartfelt thanks

Regards,
Parmod kumar

5
Chapter Nomenclature Of Chapter Page Nos.
No.
1
Cover Page

Undertaking 2

Certificate 3

Preface 4

Acknowledgement 5

Content
1
Introduction 7-15
2.
Review Of Literature
16-17
3
Research Methodology
18-28
4.
Data Analysis And Interpretation
29-43
5.
Facts & Findings
44
6.
Recommendations &Suggestions
45
7
Limitation Of Study
46
8
Summary & Conclusion
47

Bibliography

Questionnaire

6
 CHAPTER 1
INTRODUCTION

1. E-COMMERCE
Although the terms e-commerce and e-business are often used
interchangeably, there are differences. E-commerce is the buying and
selling of goods and services on the Internet or other computer
network. Any brick and mortar store can become an e-commerce
business by adding a virtual storefront with an online catalogue. In
most cases, e-business refers exclusively to Internet businesses, but it
may also refer to any business that uses Internet technology to
improve productivity and profitability.

2. E-BUSINESS
Business transactions that involve the exchange of money are covered
by the term e-commerce. E-business includes all aspects of running a
business that sells goods and services, including marketing, earning
and retaining customers, procurement, developing business partners
and customer education. In order to be successful, e-commerce and e-
businesses must have quality storefronts that are simple to navigate
and peruse, with accurate and thorough catalogue information. E-
business became an extension of e-commerce to encompass all aspects
of businesses that function online. E-business involves e-commerce,
but e-
Commerce does not cover all aspects of e-business.
3. BUSINESS MODELS E-Commerce or Electronics Commerce
business models can generally be categorized in the following
categories:-

 Business - to - Business (B2B)

 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)

7
  Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)

Business - to - Business (B2B)

Website following B2B business model sells its product to an intermediate

buyer who then sells the product to the final customer. As an example, a
wholesaler places an order from a company's website and after receiving the
consignment, sells the end product to final customer who comes to buy the
product at wholesaler's retail outlet.

Business - to - Consumer(B2C)

8
Website following B2C business model sells its product directly to a
customer. A customer can view products shown on the website of business
organization. The customer can choose a product and order the same.
Website will send a notification to the business organization via email and
organization will dispatch the product/goods to the customer.

Consumer - to - Consumer (C2C)

9
Website following C2C business model helps consumer to sell their assets
like residential property, cars, motorcycles etc. or rent a room by publishing
their information on the website. Website may or may not charge the
consumer for its services. Another consumer may opt to buy the product of
the first customer by viewing the post/advertisement on the website.

Consumer - to - Business (C2B)

10
In this model, a consumer approaches website showing multiple business
organizations for a particular service. Consumer places an estimate of
amount he/she wants to spend for a particular service. For example,
comparison of interest rates of personal loan/ car loan provided by various
banks via website. Business organization who fulfills the consumer's
requirement within specified budget approaches the customer and provides
its services.

Business - to - Government (B2G)

11
B2G model is a variant of B2B model. Such websites are used by
government to trade and exchange information with various business
organizations. Such websites are accredited by the government and provide a
medium to businesses to submit application forms to the government.

Government - to - Business (G2B)

Government uses B2G model website to approach business organizations.

Such websites support auctions, tenders and application submission
functionalities.

Government - to - Citizen (G2C)

Government uses G2C model website to approach citizen in general. Such

websites support auctions of vehicles, machinery or any other material. Such
website also provides services like registration for birth, marriage or death
certificates. Main objectives of G2C website are to reduce average time for
fulfilling people requests for various government services.

NEED OF THE STUDY (E-COMMERCE)

12
1. Exploitation of New Business

Broadly speaking, electronic commerce emphasizes the generation and

exploitation of new .business opportunities and to use popular phrases:
“generate business value” or “do more with less”.

2. Enabling the Customers

Electronic Commerce is enabling the customer to have an increasing say in

what products are made, how products are made and how services are
delivered (movement from a slow order fulfillment process with little
understanding of what is taking place inside the firm, to a faster and rt1ore
open process with customers having greater control.

3. Improvement of Business Transaction

Electronic Commerce endeavors to improve the execution of business

transaction over various networks.

4. Effective Performance

It leads to more effective performance i.e. better quality, greater customer

satisfaction and better corporate decision making.

5. Greater Economic Efficiency

We may achieve greater economic efficiency (lower cost) and more rapid
exchange (high speed, accelerated, or real-time interaction) with the help of
electronic commerce.

6. Execution of Information

It enables the execution of information-laden transactions between two or

more parties using inter connected networks. These networks can be a
combination of ‘plain old telephone system’ (POTS), Cable TV, leased lines
and wireless. Information based transactions are creating new ways of doing
business and even new types of business.

7. Incorporating Transaction

13
Electronic Commerce also inco11'orates transaction management, which
organizes, routes, processes and tracks transactions. It also includes
consumers making electronic payments and funds transfers.

8. Increasing of Revenue

Firm use technology to either lower operating costs or increase revenue.

Electronic Commerce has the Potential to increase revenue by creating new
markets for old products, creating new information-based products, and
establishing new service delivery channels to better serve and interact with
customers. The transaction management aspect of electronic commerce can
also enable firms to reduce operating costs by enabling better coordination in
the sales, production and distribution processes and to consolidate operations
arid reduce overhead.

9. Reduction of Friction

Electronic Commerce research and its associated implementations is to

reduce the “friction” in on line transactions frictions is often described in
economics as transaction cost. It can arise from inefficient market structures
and inefficient combinations of the technological activities required to make
a transaction. Ultimately, the reduction of friction in online commerce will
enable smoother transaction between buyers, intermediaries and sellers.

10. Facilitating of Network Form

Electronic Commerce is also impacting business .to business interactions. It

facilitates the network form of organization where small flexible firms rely
on other partner, companies for component supplies and product distribution
to meet changing customer demand more effectively. Hence, an end to end
relationship management solution is a desirable goal that is needed to
manage the chain of networks linking customers, workers, suppliers,
distributors and even competitors. The management of "online transactions"
in the supply chain assumes a central roll.

11. Facilitating for Organizational Model

It is facilitating an organizational model that is fundamentally different from

the past. It is a control organization to the information based organization.
The emerging forms of techno-organizational structure involve changes in

14
managerial responsibilities, communication and information flows and work
group structures.

CHAPTER II

15
 REVIEW OF LITERATURE

Several researchers have carried out studies in their effort to examine

consumers ‘online buying behavior. For example, Bellman et al (1999)
investigated various predictors for whether an individual will purchase
online. These authors concluded that demographic variables, 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 behavior, 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 (Modal,
2000). Stein field 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 (Geffen et al, 2003;
Venkatesh and Brown, 2001; Yu et al, 2005.

16
 OBJECTIVE OF STUDY

 To find the factors that leads a website user to return to or recommend

the website Flipkart.com
 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 Flipkart.com
 To determine the factors responsible for customer satisfaction

17
 CHAPTER III

RESEARCH METHODOLOGY

B2C Model of E-Commerce taking the example of www.flipkart.com which

is our case study of this project pertaining to one of the models (B2C) of E-
Commerce and the main crux of this study will be to see how
www.flipkart.com has utilized the B2C Model to revolutionize E-Commerce
in India.

The Organization, which I have selected for my Study, is “Flipkart.com” an

Emerging Indian online mega store. I would be studying the strategies that
the portal have used to attract Indian masses, so as to give them the total
online shopping experience, the portal offers an unique strategy towards the
masses to make payment modes like Cash & Card on delivery, which
invariably helps the masses to avoid the hassle of making online payments,
as the credit card penetration in India

is very low, &people are reluctant to make online payments more to do with
the Indians psyche. Since portals are giving a customized offering to the
masses i.e rite from the wider product portfolio to payment options, its
making very convenient for the users to have a online shopping experience
hassle free. Flipkart has followed the same business model as of
Amazon.com,i.e starting from selling books therefore we can call it as “
Flipkart - The Amazon of India “, however Flipkart is now Regional based
E-business portal i.e only targeting Indian Market. More Interesting is that,
the minds that worked to start Flipkart are also the Ex. Amazon Employees.

Flipkart.com is an Indian based e-commerce company started by Binny

Bansal and Sachin Bansal, who previously worked at Amazon.com. Post
their experience, they ventured into a similar e-business idea and launched it
in India. Flipkart.com works with the aim of making products and goods
easily available at the doorsteps of anyone who has Internet access.
Flipkart.com 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, Flipkart.com has
also widened its foray by entering into the emerging digital content market
18
with the recent launch of Flyte, 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 ranked no.1 online shopping site in India, spread
in 37 cities, with 11.5 million plus book titles, 14 different categories,
26 million plus registered users and sale of 100000items a day. It 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

TYPE OF STUDY

19
 1. Flipkart’srevolutionary workings which has completely overhauled
purchase of products from physical presence in the market to the
purchase of products Online, utilising the B2C model of E-
Commerce;
2. Analysis and Trends of change in the Market induced by Flipkart.

TOOLS FOR DATA COLLECTION:–

Usingvarious survey reports conducted by Flipkart.com for the betterment of

Customer service.

METHOD OF ANALYSIS –
Comparison of situations using Graph Analysis and Percentage Analysis.

TABLES
Table 1:-Some household types and their affinity with b2c e-commerce.
Household type Affinity with b2c e-commerce
1. Young adults (< 30 Skilled, frequently using the Internet, eager to know new things but

years) with limited financial resources; not yet regular Internet shoppers,

but likely to be so in the future, especially when living in rural areas.

2. The elderly (> 60 Insufficient skills, sometimes with financial means and lacking

years) certainphysical abilities, but not at all time-pressed; hence

limitedinvolvement in b2c e-commerce, which may gradually

change over in the next two decades, especially when living in rural

areas.
3. Time-pressed Highly skilled, double-income, time-pressured households with

families children and some affinity with new technologies; potential or

20
 present

Internet shoppers, especially when living in rural areas.

4. ‘Active, on-the- Highly skilled, high-income, time-pressured professionals with a

go-lifestyles’ highaffinity for new technologies; potential or present Internet

shoppers,especially when living in rural areas.

Table 2:-Transaction cost reductions due to e-commerce.

Consumers (buyers) Businesses (suppliers) Advantages of e-

commerce
Contact Search for product Look for selling Enhanced access to

alternatives, become aware alternatives, consider information implies

of needs and possibilities manifest or potential better

tofulfiII them, match needs of clients, and search, matching

alternatives, andevaluation
determine their
and evaluate outcomes. possibilities.
capacity to fulfiII
Efforts to enhance
these needs.
customer

loyalty may reduce this

advantage, however.
Contract Negotiate the terms of a Shift of administrative

transaction, draft a costs from sellers to

21
 preliminary contract, buyers. Online

anticipate possible future planning systems reduce

problems, and propose costs at his stage.

changes in the contract.
Control Monitor the realization of More information

the transaction process, available

compare with contract through online control

details. Deviations lead to systems, e.g. tracking-

haggling, adjustment of andtracing.

contracts, sanctions or In case of

third-party mediation. opportunistic behaviour,

e-commerce is not a

sufficient tool to

handleproblems.
During Both parties invest time, More and better

the effort and money in (interactive)

entire preventing information facilitates

process misunderstandings, ongoing communication.

mistakes and

22
 misspecifications,

incomplete fine-tuning

or applications.
Source: adapted from Nooteboom (1994), pp. 32–33.

CONCEPTUAL FRAMEWORK / NATIONAL AND INTERNATIONAL

SCENARIO
NATIONAL SCENARIO -
Flipkart has worked wonders in the field of E-Commerce, wholly
revolutionising the way Indians purchased products, that too directly from
the conglomerates themselves. This was brought about by a sound Finance
System.

Initially, the founders had spent 4lakh to set up the business. Flipkart has
later raised funding from venture capital funds Accel India (US$1 million in
2009)and Tiger Global (US$10 million in 2010 and US$20 million in June
2011). On 24 August 2012, Flipkart announced the completion of its 4th
round of $150 million funding from MIH (part of Naspers Group) and
ICONIQ Capital. The company announced, on 10 July 2013, that it has
raised an additional $200 million from existing investors including Tiger
Global, Naspers, Accel Partners and Iconiq Capital.

Flipkart's reported sales were 40 million in FY 2008–2009, 200 million in

FY 2009–2010and 750 million for FY 2010–2011. In FY 2011–2012,
Flipkart is set to cross the 5 billion (US$100 million) mark as Internet usage
in the country increases and people get accustomed to making purchases
online. Flipkart projects its sales to reach 10 billion by year 2014. On
average, Flipkart sells nearly 20 products per minuteand is aiming at
generating a revenue of 50,000 crore (US$.8 billion) by December 2015.

23
On November 2012, Flipkart became one of the companies being probed for
alleged violations of FDI regulations of the Foreign Exchange Management
Act, 1999

In July 2013, Flipkart raised USD 160 million from private equity investors,
taking the total to USD 360 million in its recent fund raising drive to build
and strengthen technology and bolster its supply chain.

In October 2013, it was reported that Flipkart had raised an additional $160
million from new investors Dragoneer Investment Group, Morgan Stanley
Investment Management, Sofina SA and Vulcan Capital with participation
from existing investor Tiger Global. With this, the company has raised a
total $360 million in its fifth round of funding, the largest investment raised
by an Internet company in India, emulating InMobi’s $200 million
investment from Softbank in September 2011.

The company valued at approx.US$15.5 billion (May 2015), and plans to

use the capital raised to improve its technology and supply chain
capabilities, enhance its end user experience and for hiring.

India's e-commerce market was worth about $2.5 billion in 2009, it went up
to $6.3 billion in 2011 and to $14 billion in 2012. About 75% of this is travel
related (airline tickets, railway tickets, hotel bookings, online mobile
recharge etc.). Online Retailing comprises about 12.5% ($300 Millionas of
2009).

India has close to 10 million online shoppers and is growing at an estimated

30% CAGR vis-à-vis a global growth rate of 8–10%. Electronics and
Apparel are the biggest categories in terms of sales.

India's retail market is estimated at $470 billion in 2011 and is expected to

grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%.
According to Forrester, the e-commerce market in India is set to grow the
fastest within the Asia-Pacific Region at a CAGR of over 57% between
2012–16.

INTERNATIONAL SCENARIO –
24
Flipkart’s reach has not yet reached the International market so we cannot
comment on its International Scenario but the management has plans of
extending its business to the South East Asian region.
The Change from traditional commerce to E-Commerce

For nearly 25 years, Dinesh Chopra lived with a locational handicap. Chopra
sells computer parts, electronic gadgets and accessories from his outlet in
Nehru Place — an assembly of several four-storey buildings. Although
Asia's largest computer market registers thousands of footfalls every day,
only a fraction brave the filth and dilapidation to climb up. "I'm on the first
floor and that's my weakness," says Chopra, director, Softek Surya. "I don't
get regular walking customers."

But Chopra does not mind anymore. "Now, they land on my shop via online
marketplaces," he smiles. Softek is a registered seller on five online
marketplaces, including eBay and Flipkart. "About 35 per cent of my
marketplace buyers are from South India, who have never seen my shop," he
says. His annual sales have rocketed from Rs 14 crore in 2010-11 to Rs 60
crore now; and 70 per cent of it is from online marketplaces, which are
adding "muscle to business".

Chopra is a prime
example of online marketplaces — branded e-tailers who host sellers, and
connect them to buyers for a commission — empowering a small business to
scale up.

25
An example of another kind of empowerment they are enabling is India
Trend, which is in business only because of online marketplaces. Seven
years ago, Parul Arora Mittal and her mother "tried their luck" by putting 20
pieces of jewellery on eBay. All were sold in a week. Today, Mittal's small
operation exports handmade, alloy-metal jewellery, via eBay. "We never had
the resources to set up a physical store," says the 30-year-old. Now, she has
no reason to. "Since then, I have never even thought of a physical store. The
online marketplace is my business place." And their numbers are increasing.

Amazon is the latest, launching its online marketplace in India in June.

Globally, the world's largest retailer earns 40 per cent of its 2012 revenues of
$61 billion (Rs 3,66,000crore) by selling other people's goods.

Sensing the groundswell and business logic even Flipkart, India's largest
online retailer, started selling goods of other sellers — the online
marketplace model — along with its own goods. "It's the right time as we
have now built the Flipkart brand," says its co-founder & CEO Sachin
Bansal, adding the online marketplace is the "right model for India".Such
moves by e-commerce players is opening up a world of possibilities for
small entrepreneurs like Chopra and Mittal.

26
The figure above clearly shows the meteoric rise of E-Commerce in Market
Capitalisation by Retail stores in the new Millenium.
It is all because of online shopping sites such as e-bay, FLIPKART, Amazon,
etc.

This is a survey conducted to find out how E-Commerce has impacted

businesses in India. It clearly shows increase of an average of 70% in all the
categories of change, thus, emphasising on the fact of the Rise and Rise of
E-Commerce, and its Main Player, FLIPKART, in India.

27
 CHAPTER 4

DATAANALYSIS AND INTERPRETATION

This chapter aims obtain the objective of the study by critically analyzing
the qualitative datathrough thoroughly examining the interviewee‘s
responses and beliefs. This has beenachieved through evaluating the most
relevant responses by the participants. The data
has been analysed and discussed by comparing the comments made bythe re
spondents with theliterature review keeping in mind the research objective
of the study. Thus, the rationale ofthis analysis is based on the personal
answers provided by the respondents.An appropriately designed
questionnaire was used to collect the primary data for the study.The data for
100 respondents was organized systematically in tables and graphs and then
wassubjected to analysis using appropriate statistical tools. The results of the
analysis are presented in the following section in order to assess the
customer perception towards online shopping on Flipkart.com in India. Here
foranalyzing,we are considering two factors. That is:

 Demographical factors
 Behavioural factors

28
Demography
1. Age Group:

Table: Age wise respondents

45&
15-25 25-35 35-45 above Total

No. of Respondents 63 24 12 1 100

Percentage 63 24 12 1 100
Graph:Agewise respondents

Analysis and Interpretation:

Below figure shows that 63% respondents are between 15-25 years old, 24%
respondents are between 25-35 years old, 12%respondents between 35-45
years old, and 1% respondents are between 45& above. Overall result shows
that between all of the respondents who has age between15 to 35 years (63%
+24%=87%) people are more familiar to shop online on my target
population.

2. Gender of Respondents
Table: Gender wise respondents
Male Female Total
Responses 58 42 100

29
Percentage 58 42 100

Graph:Gender wise respondents

Analysis and Interpretation:

According to demography profile, in this study 58% male and 42% female
respondents are part of my target population and they help me to fulfil my
questionnaire from different areaof Bangalore city. From these groups total
respondents are 100. So, according to the surveyresult, the male respondents
are more and can be told that they interested to shop online thanfemale, even
though both of them shop online.

30
 3. Occupation

Table: Occupation wise respondents

Business
person Housewife Salaried Student Total
No. of Respondents 8 7 46 39 100
Percentage 8 7 46 39 100

Graph: Occupation wise respondents

Analysis and Interpretation:

In this survey, 46% of the respondents are salaried and 39% are students. So
they bothtogether made majority of respondent‘s percentage (85%). 8% are
business persons and 7%are House wife. Salaried persons and students will
always look for new technologies and newservices which make them more
comfort.

31
4. Annual Income:
Table: Income wise respondent
9&
0-3L 3-6L 6-9L above
No. of Respondents 60 23 13 4
Percentage 60 23 13 4

Graph: Income wise respondents

Analysis and Interpretation:

Since 39% of this survey is students most of them are of 0-3L
income range, ie 60%. 23% of them are in 3-6L income range, 13% in 6-9L
and 4% is 9 & above.

32
5. Educational Qualification
Table: Educational wise respondent
Post SSC or Others
Graduate Graduate Equivalent (Phd)
No. of Respondents 63 36 0 1
Percentage 63 36 0 1

Graph: Educational wise respondent

Analysis and Interpretation:

All of them in this survey are graduate and above qualified peoples only.
Among these 63%are graduates, 36% are post graduates and one person is
PhD.

33
Behavioural factors:
6. Frequency of purchase from online
Table: online shopping usage
Always Often Sometimes Seldom Never Total
Male 5 21 29 3 0 58
Female 4 14 23 1 0 42
Total 9 35 52 4 0 100

Graph: online shopping usage

Analysis and Interpretation:More than half of them use online shopping

sometimes, ie 52%. People who always andmostly shop through online
shopping are also good in number, 9 and 35, together 44%. Andwho use
online shopping rarely is very less in number 4%. Since only 44% are
mostly usingthis, there is a wide space to fill and to make online shopping a
great success. And there is notmuch gender difference in online shopping,
which means both males and females enjoyingonline shopping and its
benefits.

34
 7. This survey is conducted on those people who do online shopping and are
aware of Flipkart.
So everyone answered ‘YES’ for Question no.7.
8. Modes of awareness about Flipkart
Table: Modes of awareness about Flipkart
Links
Word
Blog from Promotional Search
of Advertisements
Recommendations other Emails Engines
Mouth
Websites
No. of
39 22 2 15 5 17
Respondents
Percentage 39 22 2 15 5 17

Graph: Modes of awareness about Flipkart

Analysis and Interpretation:

Most of them are aware about Flipkart through word of mouth (39%)
followed by televisionand online advertisements (22%). Customers got
aware through blog recommendations(2%) and promotional e-mails (5%)
are very less in number.This means a good communication about Flipkart is
going on through friends and families,which proves that word of mouth
strategy by them is the most successful means of making people aware about
their products. Success can only be gained through delighted customers who

35
act as advocates for their products and there is a wide scope of other digital
advertisement techniques like search engine marketing,
Email marketing, providing links and blog recommendations in order to
make more customers.
9. Frequency of Using Flipkart.com while online Purchasing:

Table: Frequency of Using

Every Most of the Hardly

Time Occasionally Time Ever Total
No. of Respondents 17 45 32 6 100
Percentage 17 45 32 6 100

Graph: Frequency of Using

Analysis and Interpretation:

Here on this survey 17% are always choosing Flipkart for online shopping,
while 45% areusing it occasionally. Hardly ever using members are very
less, and 32% are using it most ofthe time. Since more than half of them
prefer Flipkart while thinking of online shopping, itmeans branding had
done successfully by them either through advertisements, services
or providing good experience to customers.

36
 10. Category that mostly prefer to buy from Flipkart.com

Table: Category mostly prefer to buy from Flipkart

Healthcare
Apparels & Home &
& Books,Movies Personal Kitchen
Electronics Accessories & Music Statinary Care Items
No. of
Respondents 39 20 30 3 4 4
Percentage 39 20 30 3 4 4

Graph: Category mostly prefer to buy from Flipkart

Analysis and Interpretation:

Electronic items, Books and Stationery, Apparels & Accessories, cameras,
watches andothers (bags, belts, etc.) are purchased more. 39% of
respondents are preferred to buyElectronics items followed by Books and
Stationery (30%) and Apparels and Accessories(20%). Books & stationery
and electronics items are more famous among the students andthat may be
the reason for large purchase of those items from Flipkart.com.
37
11. Reason for Customer’s preference on Flipkart.com than Others:

Table: Customers expecting feature of Flipkart

After Easy
Fast Sales Payment Portal
Deliver Availability Service Options Features Total
No. of
Respondents 41 29 8 17 5 100
Percentage 41 29 8 17 5 100

Graph: Customers expecting feature of Flip kart

Analysis and Interpretation:

One of the most efficient features in Flip kart is fast delivery when compared
to other online shopping websites. So, most of the customers prefer this
website for shopping with the perception of quick delivery (41%) and
availability of product (29%), followed by easy payment options (17%). And
there is a scope of increasing after sales services and portal features when
comparing with other features.

38
12. Product selection from the categories given by flipkart.com

Table: On the basis where product is chosen

Rating of Discounts Review
the and About the Brand of
Product Features Product the Product Total
No. of
Respondents 14 48 26 12 100
Percentage 14 48 26 12 100

Graph: On the basis where product is chosen

Analysis and Interpretation:

Customer perception varies while using Flip kart; it is one of the online
shopping sites which give high discounts and offers. Most of them in this
survey (48%) are looking for good featured product with high discounts
while purchasing products from Flip kart. And also customers more often go
through the product review (26%) before making their decision to purchase.
Product review is a kind of word of mouth strategy where product users leav
e their review on their experiences with Flip kart. Customers are giving
priority to these two features while brand of product (12%) and rating of
product (14%) also taken care by some other customers.

39
13. Issues faced by customer while shopping in Flipkart.com
Table: Issues faced when purchased from Flipkart
No
Out of Payment Replacement Delay in Faulty issue
Stock Issues Issues delivery Product s Others Tota
No. of
Respondents 37 6 6 12 8 30 1 100
Percentage 37 6 6 12 8 30 1 100
Graph: Issues faced when purchased from Flipkart

Analysis and Interpretation:

In this survey, 30% of customers didn‘t face any of those problems that
mentioned, while37% of customers faced out of stock issue. This is one of
serious issue faced by most of customers. Since discounts and features are
the one feature that most of the customers looking for and when a good
product with high discount is displayed in Flipkart plat form, customers
brought it as soon as they could. Thus the products will be out of stocked.
Flipkart started notifying the customers about the product when the stock got
available.
Payment issues and replacement issues are less in number (total 12%) since
different payment options like EMI options, card payments, Cash on

40
delivery, Wallet payments etc…are provided by Flipkart and customers are
satisfied with those.
In case of replacement also only less issues are happened, thus shows most
of them are satisfied with that service. Delay in delivery happens because of
shipping and courier service issues. It is a problem with supply chain.
Mostly it happens in the end part of the supply and in rural areas where
courier services are less active. Faulty product issue also happened to 8% of
the customers and one of the policies to overcome this issue is 30 days
replacement policy of Flip kart.

14. Recommending Flip kart to Others:

Table: Recommending Flipkart to Others:

Yes No Total
No. of
Respondents 95 5 100
Percentage 95 5 100

Graph: Recommending Flipkart to Others:

Analysis and Interpretation:

In this survey, most of them (95%) are happy to recommend Flip kart to
others like friends and family. And this shows word of mouth publicity is
successfully running and this is one of the great advantages for Flip kart.

41
15. Customer’s rating about services on Flip[kart.com:

Table: Rating The experience from Flipkart

1 2 3 4 5 Total
No. of
Respondents 7 11 16 49 17 100
Percentage 7 11 16 49 17 100

Graph: Rating The experience from Flip kart

Analysis and Interpretation:

While analyzing the rating of experiences, Flipkart provides good and
excellent experiences to most of the customers.
Mode of given data: 4 & Median of given data: 4
49% of customers rated 4 as the experience and more than half of the
population (66%) rated4 & 5 as experience

42
 CHAPTER-V

FACTS & FINDINGS

]
 There is not much difference in gender for using online shopping.
 Students and salaried persons are most frequent users of Flip kart.
 Frequency of purchase for electronics, books and music, apparels and
accessories are more in Flip kart.
 Word of mouth was more influential in promotion as many people
were made aware by their friends and family when customers
recommend this website to them.
 Highly discounted products got out of stock quickly, since customers
purchased it as on as they could when they see high discount on good
featured product.
 The services provided by Flip kart are good and even more scope of
development is there for increasing the customer strength.
 Digital marketing techniques like search engine marketing, links
providing other website and advertisement also functioned well for
promotion of this website.
 Fast delivery is one of best service Flip kart is providing.
 Different payment options available in Flip kart made customers more
satisfied and comfort for paying while purchasing product.
 Customers feeling more secured when purchasing through Flip kart
because of different policies and services they have.
 In comparison with competitors, Flip kart is charging free shipping for
the purchase of300 plus rupees, while others free ship the service
without any barrier.
 Out of stock is the main issue faced by Flip kart.
 Most of customers have good experience with Flip kart while
purchasing products.
 Most of them are satisfied with the services of Flip kart and so that
they succeed in retaining the customers.

43
 Advertising is an important way to have the brand and products
familiar to consumers Convenience and time saving are two important
factors that customer looking for while purchasing through online.

CHAPTER VI

RECOMMENDATIONS & SUGGESTIONS

 Flip kart 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 their core competence that is books and
stationery items.
 Delivery services can be improved mainly in rural areas by selecting
appropriate courier service which has services in customer area for
dispatching an item.
 Can make free delivery to all priced products.
 Can include more coupon codes and gift vouchers for increasing the
traffic of the customers.
 Out of stock items can made available as soon as possible and
intimate the needed customers.
 Should look for International/ Overseas markets or Neighbouring
Countries.
 Critical mass of Internet users–Internet users in India is increasing at
increasing rate, so Flip kart can target more & more cities i.e not only
tier 1 & 2 but also tier 3 & 4cities, which will help generate stronger
customer base & more revenues.
 Should clearing focus on the Growing Online Apparel business & it
can diversify into apparel category either organically or inorganically
by acquiring other portals.
 User Experience: Portal should continuously aim to work to improve
the user experience by adding more & more innovative features in the
website like virtually shopping basket, virtual trial rooms. In this
competitive world to differentiate via user experience, the ultimate
winner will be the Indian online consumer.
 Should comprehensively invest into E-CRM & online reputation
management.

44
  Logistics & Supply Chain: can continuously aim to reduce the
delivery time cycle.
 Price will still be a factor as Amazon being a huge company will use
its economies of scale to remove their competitors from the market;
therefore they need to be more competitive on that aspect.

CHAPTERVII

LIMITATIONS OF THE STUDY

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.

1. The study was restricted to Bangalore city only

2. The study was restricted to Bangalore city only
3. The study is mainly concentrated on Flipkart.com
4. The sample of the size will be limited to time and resources
5. The information will be collected valid until there is no any technical
change or any innovation
6. The result is assuming that respondents have given accurate
information

45
 CHAPTER VIII

SUMMARY CONCLUSION

The thorough study is based on the consumer behavior analysis which serves
a great idea regarding consumer perception when they go for online
shopping. In order to satisfy themselves consumer perceive many things
before buying products and they will be satisfied if the company meet their
expectation. The Overall Brand Value of Flip kart is good, but it is facing
some tough competition from its global competitors like EBay and Amazon.
Talking about domestic market i.e. India, it is the most superior E-business
portal which is aggressively expanding & planting 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!.Be very focused on consumers and build amazing experiences
for the customers.

46
BIBLIOGRAPHY:

 www.flipkart.com
 www.commodityindia.com
 www.marketoperation.com
 www.nextbigwhat.com
 www.britannica.com
 www.ecommerce-land.com
 www.commodityindia.com
 www.marketoperation.com
 WIKIPEDIA

47