A STUDY ON THE IMPACT OF ONLINE RETAILING ON THE SECTOR

A CASE ON FLIPKART
Project report submitted to

PRIST
DEEMED TO BE UNIVERSITY

In partial fulfillment of the requirements for the award of the degree of

BACHELOR OF COMMERCE (GENERAL)

Submitted By

VINITHKUMAR. P
REG. NO.1803CM1016
Under the guidance of

M. PRABHAVATHI M. Com., M. Phil.

Assistant Professor of Commerce Department

PRIST UNIVERSITY

PUDUCHERRY CAMPUS

JULY - 2021

PRIST
 DEEMED TO BE UNIVERSITY

PUDUCHERRY CAMPUS

Date:

CERTIFICATE

This is to certify that the project report entitled “A Study on the impact of online retailing on

the sector a case on flipkart” is the bonafide record of the work done by VINITHKUMAR. P

Reg.no. 1803CM1016 a full time student of PRIST, in partial fulfillment of requirements for the

award of the degree of Bachelor of Commerce (General). This project to the best of my knowledge

has not formed the basis for the award of any degree or any other similar title and that it represents

entirely an independent work on the part of the candidate under my overall supervision.

Date of Viva Voce:

Signature of the Guide Head of the

Department

Internal Examiner External Examiner

DECLARATION
I Vinithkumar. P hereby declare that the project entitled “A Study on the impact of
online retailing on the sector a case on flipkart“ Submitted to the PRIST
UNIVERSITY, Puducherry Campus for the award of the Degree of Bachelor of
Commerce (General) is my original work and has not formed the basis for the award of
any degree or diploma, fellowship, Associate ship, or any other similar title.

Place:

Date:

Signature of the Candidate

ACKNOWLEDGEMENT
 I express my gratitude to the almighty for his blessings showered upon me, which has
helped me to complete this project work successfully.

I owe my sincere thanks to our honorable CHANCELLOR, PRIST UNIVERSITY for

providing an excellent environment and infrastructure for successfully completing my B.COM
project work.

I express my deep sense of gratitude to our VICE CHANCELLOR, PRIST for his

motivation and successful completion of the project work.

With a deep sense of gratitude, I express my sincere thanks to Dr. KAILASAM

KOUMARAVELOU, DIRECTOR, PRIST UNIVERSITY, PUDUCHERRY CAMPUS for
all the encouragement and whole hearted co-operation extended in completing the project work

successfully.

It is my pleasure to record my deep sense of thankfulness to Dr. S. POUGAZHENDI,

HOD, MANAGEMENT AND COMMERCE, PRIST, PUDUCHERRY CAMPUS who

helped me in all my efforts throughout the journey of my project.

I wish to express my sincere gratitude, respect and thanks to Mrs. M.PRABHAVATHI,

ASSITANT PROFESSOR, of department of commerce in PRIST UNIVERSITY, PUDUCHERRY.

My faculty guide for me dissertation work without his support my work could not be completed

I’m thankful to the respondents who have answered the questions in spite of their busy
schedule. I would like to acknowledge the whole hearted support of my parents, faculty members
and friends who helped me at various stages in completing this project work
successfully.

TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE NO.
Abstract I
 Acknowledgement Ii
List of tables Iii
List of charts Iv
INTRODUCTION

1.1 E-Commerce

1 1.2 E-Business

1.3 Business Models

1.4 Need of the study

2.1 Objective of the Study

2
2.2 Limitation of the Study

RESEARCH METHODOLOGY

3.1 Area of Study

3.2 Type of Study

3
3.3 Tools for Data Collection

3.4 Method of Analysis

3.5 Tables

4 CAPITAL ANALYSIS AND FINDINGS

4.1 Demography

4.2 Behavioral Factors

4.3 Findings

5 CONCLUSION

Appendix

a. Bibliography

CHAPTERIZATION

CHAPTER I:

It consist of introduction, need and models of business.

 CHAPTER II:

It consist of objectives and limitations of the study.

CHAPTER III:

It consist of the research methodology and the elaborate description.

CHAPTER IV:

It consist of capital analysis and findings with demography and

behavioral factors.

CHAPTER V:

It consists of conclusion, suggestion and a brief review.

CHAPTER – I

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. Theemerging
forms of techno-organizational structure involve changes in managerial
responsibilities, communication and information flows and work group structures.

CHAPTER –II
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.

CHAPTER -III

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 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 Installment 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

Skilled, frequently using the Internet, eager to know new things but
1. Young adults with limited financial resources; not yet regular Internet shoppers,
but likely to be so in the future, especially when living in rural areas.
(< 30 years)
Insufficient skills, sometimes with financial means and lacking
2. The elderly certain physical abilities, but not at all time-pressed; hence limited
involvement in b2c e-commerce, which may gradually change over
(> 60 years)
in the next two decades, especially when living in rural areas.
Highly skilled, double-income, time-pressured households with
3. Time-pressed children and some affinity with new technologies; potential or
families present
Internet shoppers, especially when living in rural areas.
Highly skilled, high-income, time-pressured professionals with a
4. ‘Active, on- high affinity for new technologies; potential or present Internet
the-go-lifestyles’ 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
fulfill them, match needs of clients, and search, matching and
alternatives, and e valuate determine their evaluation possibilities.
outcomes. capacity to fulfill 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 behavior ,
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.
 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
3,66,000crore) 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.
 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 –IV

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 bythe re
spondents with theliterature 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
 Behavioral 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 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
 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 fulfill 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.

4. 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, i.e. 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

Post
Graduat Graduat SSC or Others
  e e 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.

Behavioral 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, i.e. 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

Word Links
Blog Search
of Advertisement from Promotiona
  Recommendation Engine Total
Mout s other l Emails
s s
h Websites
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 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

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
& Books, Healthcare Home &
Electronic Accessori Movies& Stationer & Personal Kitchen Tota
  s es Music y Care Items l
No. of
Respondent
s 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 ies ic ry re s
oni or us na Ca Ite
m
r s M ti l
ct ce
s & St
a na en
Ele Ac v ies r so itch
& o Pe K
r els s ,M & e &
pa ok re m
Bo ca Ho
Ap le th
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
er

y
liv

ilit

ice
De

ns
ab

rv

es
tio
st

ail

Se

r
Fa

tu
Op
Av

les

ea
t
Sa

lF
en

ta
er

r
Aft

ay

Po
P
sy
Ea

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 Discounts and Review About Brand of the
  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 shopping in Flipkart.com

Table: Issues faced when purchased from Flipkart

Faulty No
Out of Payment Replacemen Delay in Produc issue Other
  Stock Issues t Issues delivery t s s Total
No. of
Respondent
s 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
ck ue
s
ue
s ry ct s rs
Sto ss ss li ve odu sue the
I I is
to
f t t de yP
r O
u m
en
m
en in lt No
O y e y u
Pa p lac D ela Fa
Re

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 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 Flipkart.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 analyzing 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.
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.

CHAPTER – V
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 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