I.

K GUJRAL PUNJAB TECHNICAL UNIVERSITY

KAPURTHALA
In the partial fulfillment of the requirement for Award of Degree of
Master of Business Administration (MBA)

Submitted by: Submitted to:

Jitesh soni Dr. Rajinder Kaur
1915764 Assistant Professor

CGC TECHNICAL CAMPUS

FACULTY OF MANAGEMENT
JHANJERI, MOHALI-140307
TABLE OF CONTENTS
CHAPTER 1 –
INTRODUCTION
 Introducing the topic
 Need of the study
 Literature review
 Objective of the study
 Limitation of the study
 Research Methodology

CHAPTER 2 –
CONCEPTUAL FRAMEWORK (National and International Scenario)
 Definition
 Features Advantages and Disadvantages
 Brief Introduction of Flipkart

CHAPTER 3 –
 DATA ANALYSIS AND FINDING

CHAPTER 4 –
 CONCLUSIONS AND RECOMMENDATIONS

BIBLIOGRAPHY (OR REFERENCES)

CHAPTER 1
INTRODUCTION
INTRODUCING THE TOPIC –

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)
 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)
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)
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)
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)

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)

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

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

LITERATURE REVIEW
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.

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

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

RESEARCH METHODOLOGY

AREA OF STUDY –

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 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 100000 items 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 –

1. Flipkart’s revolutionary 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:–

Using various 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) certain physical abilities, but not at all time-pressed; hence limited
involvement 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
present
Internet shoppers, especially when living in rural areas.
4. ‘Active, on-the-go- Highly skilled, high-income, time-pressured professionals with a
lifestyles’ high affinity 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 to manifest or potential better
fulfiII them, match needs of clients, and search, matching and
alternatives, determine their evaluation possibilities.
and evaluate outcomes. capacity to fulfiII Efforts to enhance
these needs. customer
loyalty may reduce this
advantage, however.
Contrac Negotiate the terms of a Shift of administrative
t transaction, draft a costs from sellers to
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 and tracing.
contracts, sanctions or In case of
third-party mediation. opportunistic behaviour,
e-commerce is not a
sufficient tool to handle
problems.
During Both parties invest time, More and better
the effort and money in (interactive)
entire preventing information facilitates
process misunderstandings, ongoing communication.
mistakes and
misspecifications,
incomplete fine-tuning
or applications.
Source: adapted from Nooteboom (1994), pp. 32–33.

CHAPTER 2

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$100 million) mark as Internet usage in the country
increases and people get accustomed to making purchases online. Flipkart
projects its sales to reach 10 billion by year 2014. On average, Flipkart sells
nearly 20 products per minute and is aiming at generating a revenue of 50,000
crore (US$.8 billion) by December 2015.

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 Million as 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 –
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.

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 3,66,000 crore) 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.
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.

CHAPTER 3
CAPITAL ANALYSIS AND FINDING
This chapter aims obtain the objective of the study by critically
analyzing the qualitative data through thoroughly examining the
interviewee‘s responses and beliefs. This has been achieved through
evaluating the most relevant responses by the participants. The data
has been analysed and discussed by comparing the comments made b
y the respondents with the literature review keeping in mind the
research objective of the study. Thus, the rationale of this 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 was subjected 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 for
analyzing, we are considering two factors. That is:

 Demographical factors
 Behavioural factors

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: Age wise respondents

12 1

15-25
24 25-35
35-45
45& above
63

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 between 15 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
Percentage 58 42 100

Graph: Gender wise respondents

42
Male
Female

58

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 area of Bangalore city. From these groups total
respondents are 100. So, according to the survey result, the male respondents
are more and can be told that they interested to shop online than female, even
though both of them shop online.

3. Occupation
Table: Occupation wise respondents
Business Housewif
  person e Salaried Student Total
No. of Respondents 8 7 46 39 100
Percentage 8 7 46 39 100

Graph: Occupation wise respondents

7
8
39

Business person
Housewife
Salaried
Student

46

Analysis and Interpretation:

In this survey, 46% of the respondents are salaried and 39% are students. So
they both together 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 new services which make them more
comfort.

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

13
4
0-3L
3-6L
6-9L
9& above
23
60

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.

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

Graph: Educational wise respondent

1
36
Graduate
Post Graduate
SSC or Equivalent

Others (Phd)
63

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.

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

35

30 29

25 23
21
20
Male
15 14 Female

10
5
5 4
3
1
0 0
0
Always Often Sometimes Seldom Never

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

sometimes, ie 52%. People who always and mostly shop through online
shopping are also good in number, 9 and 35, together 44%. And who use online
shopping rarely is very less in number 4%. Since only 44% are mostly using
this, there is a wide space to fill and to make online shopping a great success.
And there is not much gender difference in online shopping, which means both
males and females enjoying online shopping and its benefits.

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
Advertisement Promotiona Search
  of Recommendation other Total
s l Emails Engines
Mouth s Website
s
No. of
Respondent 39 22 2 15 5 17 100
s
Percentage 39 22 2 15 5 17 100

Graph: Modes of awareness about Flipkart

No. of Respondents
39
40
30
22
20 15 17
10 5
2 No. of Respondents
0
th ts s
ite
s
ail
s
ne
s
ou en tion s m gi
M em a eb E En
of r tis end W n al
ch
d r o r
or ve m
m he oti a
W Ad co ot m Se
e m o
R
fro Pr
log s
B k
Lin

Analysis and Interpretation:
Most of them are aware about Flipkart through word of mouth (39%) followed
by television and 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 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 Hardly
  Time Occasionally Most of the Time Ever Total
No. of Respondents 17 45 32 6 100
Percentage 17 45 32 6 100

Graph: Frequency of Using

No. of Respondents
50
45
45
40
35 32
30
25 No. of Respondents
20 17
15
10 6
5
0
Every Time Occasionally Most of the Hardly Ever
Time

Analysis and Interpretation:

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

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

Table: Category mostly prefer to buy from Flipkart

Apparels
& Healthcare Home &
Electronic Accessorie Books,Movies Statinar & Personal Kitchen Tota
  s s & Music y Care Items l
No. of
Respondents 39 20 30 3 4 4 100
Percentage 39 20 30 3 4 4 100
Graph: Category mostly prefer to buy from Flipkart
No. of Respondents
39
40
30
30
20
20
10 3 4 4 No. of Respondents
0
cs rie
s ic ar
y
ar
e s
oni o us n C Item
ss M ati l
ctr ce & St na n
Ele Ac iv es r so tche
& o Pe Ki
els s ,M & e &
r k re
ppa Boo ca Ho
m
A leth
H

Analysis and Interpretation:
Electronic items, Books and Stationery, Apparels & Accessories, cameras,
watches and others (bags, belts, etc.) are purchased more. 39% of respondents
are preferred to buy Electronics items followed by Books and Stationery (30%)
and Apparels and Accessories (20%). Books & stationery and electronics items
are more famous among the students and that may be the reason for large
purchase of those items from Flipkart.com.

11. Reason for Customer’s preference on Flipkart.com than Others:

Table: Customers expecting feature of Flipkart

Easy
Fast After 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 Flipkart

No. of Respondents
41
40
29
30
20 17
10 8 No. of Respondents
0 5
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Analysis and Interpretation:
One of the most efficient features in Flipkart 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.

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

Table: On the basis where product is chosen

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

Graph: On the basis where product is chosen

No. of Respondents
48
50
45
40
35
26
30 No. of Respondents
25
20 14 12
15
10
5
0
Rating of Discounts Review Brand of the
the Product and About the Product
Features Product

Analysis and Interpretation:
Customer perception varies while using Flipkart; 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 Flipkart. 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 leave
their review on their experiences with Flipkart. 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.

13. Issues faced by customer while shopiing in Flipkart.com

Table: Issues faced when purchased from Flipkart
Out of Payment Replacemen Delay in Faulty No Other
  Stock Issues t Issues delivery Product issues s Total
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
No. of Respondents
37
40
35 30
30
25
20 12
15 8 No. of Respondents
10 6 6
5 1
0
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Analysis and Interpretation:
In this survey, 30% of customers didn‘t face any of those problems that mentioned,
while 37% 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 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 Flipkart.

14. Recommending Flipkart 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:

No. of Respondents
95
100
90
80
70 No. of Respondents
60
50
40
30
20 5
10
0
Yes No

Analysis and Interpretation:
In this survey, most of them (95%) are happy to recommend Flipkart
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 Flipkart.

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 Flipkart

No. of Respondents
49
50
45
40
35
30 No. of Respondents
25
16 17
20
15 11
7
10
5
0
1 2 3 4 5

Analysis and Interpretation:
While analysing the rating of experiences, Flipkart provides a 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

CHAPTER 4
CONCLUSIONS AND RECOMMENDATIONS
FINDINGS:
 There is not much difference in gender for using online
shopping.
 Students and salaried persons are most frequent users of
Flipkart.
 Frequency of purchase for electronics, books and music,
apparels and accessories are more in Flipkart.
 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 Flipkart 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 Flipkart is providing.
 Different payment options available in Flipkart made customers
more satisfied and comfort for paying while purchasing product.
 Customers feeling more secured when purchasing through
Flipkart because of different policies and services they have.
 In comparison with competitors, Flipkart 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 Flipkart.
 Most of customers have good experience with Flipkart while
purchasing products.
 Most of them are satisfied with the services of Flipkart and so
that they succeed in retaining the customers.
 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.
 RECOMMENDATIONS:

 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 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 Flipkart 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.
 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.

CONCLUSION:
The thorough study is based on the consumer behaviour 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 Flipkart 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.

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