Chapter 1
Chapter 1
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SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF
MASTER OF BUSINESS ADMINISTRATION (M.B.A.) FROM Dr. A.P.J. Abdul
Kalam Technical University, Lucknow
(SESSION - 2023-2025)
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CERTIFICATE
This is to certify that the project entitled AMAZON PVT LTD submitted by YASH
ARYAN of MBA 1st Semester is a Bonafede piece of work conducted under my
supervision and guidance.
No part of this work has been submitted for any other degree of any other
university.
The data sources have been duly acknowledge and it may be considered for
evaluation in partial fulfilment of the requirement for the award of degree of
Master of Business Administration.
HOD
(Management) Supervisor
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DECLRATION
This is to certify that the project entitled AMAZON.PVT.LMT Submitted for the
Degree of MASTER OF BUSINESS ADMINISTRATION of Dr. A . P . J. Abdul
Kalam Technical University, Lucknow. is Bonafide Research work carried out
under the supervision of "MS. NEHAL JAIN" lecturer .
IN "DISHA BHARTI COLLEGE OF MANAGEMENT AND EDUCATION"
and all sources used to complete this project are duly
acknowledged.
The research project has not formed for the bases of any other degree.
YASH ARYAN
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MBA 1ST YEAR
ACKNOWLEDGEMENT
"Thanks to the Almighty for showering his blessings"
I. Introduction ………………………………………….. 6 TO 11
II. Company Profile…………………………………….. 12 TO 18
III. Objective……………………………………………….. 19 TO 28
IV. History…………………………………….…………….. 29 TO 34
V. Literature Review………………………….……….. 35 TO 44
VI. Theoretical Framework…………………….……. 45 TO 58
VII. Research Methodology……………………….…. 59 TO 62
VIII. Innovation………………………………………….….. 63 TO 66
IX. Questionnaire with charts……………….…….. 67 TO 70
X. Suggestion……………………………………………… 71 TO 76
XI. Conclusion……………………………………………… 77 TO 77
XII. Limitation……………………………………..……….. 78 TO 79
XIII. Reference……………………………………..……….. 80 TO 82
XIV. Bibliography…………………………………………… 83 TO 83
INTRODUCTION
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Internet has expanded and developed fast during the past years and has
opened up opportunities to reach out to customers through new. Internet offer
possibilities for marketers to reach consumers through online communication
and has therefore affected marketing in a large extent. Marketers can
communicate and interact with their customers through the Internet. The
usage of marketing on the Internet to communicate a message to consumers
has grown and has become to play a significant role in companies’ promotional
mix. The Internet has been the media which people has adopted and accepted
the fastest and the usage of the Internet has increased. Companies today need
to think about which media channels to use when communicating their
marketing to the audience. Companies that are selling their products or
services through traditional channels will be affected by the Internet as a
media whether they choose it or not.
The invention of internet has created a paradigm shift of the traditional
way people shop. A consumer is no longer bothered about opening times or
specific locations. Customers can purchase products services at a time
anywhere.
Nowadays, the Internet is being widely used for various purposes and has
become part of daily life. At its inception internet was used as a medium for
communication only but with time it has become a source to learn, entertain
and most recently a medium for the exchange of goods and services between
buyer and seller. The internet now has resulted in a new mode of exchange
between buyer and sellers and has created an alternative for the traditional
marketplace. Shopping through the internet has brought a different dimension
to commercial activities. Compared to traditional shopping, consumers are
preferring the internet as shopping medium because of its characteristics
like ability to view and shop at any time from any corner of the world, feature
like searching information about commodities, place a query / review or give
purchase orders. Along with these features, convenience and comparatively
lower price are some additional features resulting in acceptance of internet as
a new shopping avenue.
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While shopping online, every customer desire convenience, speed, price
benefits, product comparison facility etc. It is not that these features are not
available in traditional shopping methods. But due to changes in life style, the
notions of these features have changed among the buyers. Now individuals are
finding it difficult to shop from traditional channels due to their changed
lifestyle. As a result of all these issues along with the technological
advancements, a new mode of shopping i.e. online shopping also called as
electronic shopping has emerged. The Internet, in the field of shopping, has
brought sea changes in the mindset of customers with reference to
convenience, speed, price, product information and services associated with
online shopping. The internet has provided marketers with a completely new
way to create value for customers and build relationships with them' in the
form of online shopping. Online shopping is the process whereby consumers
directly, without an intermediary service, buy goods or services from a seller in
real-time over the Internet. One way of doing electronic commerce is online
shopping. In online shopping, electronically the sale or purchase of transaction
takes place. It is also referred to as e-shopping where 'e' stands for Electronic
Shopping. Electronic shopping is defined as a computer activity/exchange
performed by a consumer, via a computer-based interface, where the
consumer's computer is connected to and can interact with, a retailer's digital
storefront to purchase the products or
services over the internet.
An e-shop allows the customer
to browse entire range of product or
service offered by e-vendor, view
pictures of the products, along with the
complete description of the product
specifications, including features and
prices. On online stores with the help
of "search" features shoppers can
easily search out specific models,
brands or items. An online shop is
also referred to as, e-shop, e-store, internet shop, webs hop, webstore, online
store, or virtual store. In present time almost all the big retailers are now
offering their online shops. These are also known as e-tailer's and their online
retail shops are sometimes known as e-tail.
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1.1 BACKGROUND OF THE STUDY
The invention of internet has changed the way businesses runs all over the
world (Adnan, 2014). Use of the internet and e-commerce has been growing
rapidly since the last decade (Yörük et al. 2011). Over the internet with a few
clicks of mouse, people can connect with friends and families from distance
(Khalil,2014). The people use the internet for many reasons such as searching
product information, evaluate price and quality, choose services, and transfer
payments (Moshref et al. 2012). In various technologically developed countries,
internet has become an important medium of communication and online
shopping People can search products and information 24 hours a day over the
internet where a wide selection of products is available (Moshref et al. 2012).
In addition to the popularity of internet, the growth of online shopping
business is increasing every year (Ariff et al. 2013). There has been a move
towards online shopping because of different online factors including
convenience, ease of use, low cost, time saving, various online shopping
because of different online factors including convenience, ease of use, low cost,
time saving, various online products and brands, with fast delivery as
compared to shopping physically (Adan,2014).
Online shopping is the third most common use of internet after web surfing
and email uses (Yörük et al.2011). Like in all marketplaces, also on the internet
buyers and sellers come together to share products, services, and information
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(Adnan, 2014). Consumer can buy the products and services anytime from
anywhere and thereby pass over the limitations of time and place (Adnan,
2014). Online shopping behaviour consists of buying process of products and
services through internet (Moshref et al. 2012). The buying process has
different steps similar to physical buying behaviour (Liang & Lai, 2000). In a
normal online purchasing process, there are five steps involved. Initially when
the consumer identifies his or her needs for a product or service, then one
moves to online and search for the information. After gathering product
information, the consumer evaluates the product with other available options
selecting an item according to his/her requirement and criteria making
transaction for selected products and gets post purchase experience (Kotler, P.
2000). Online shopping behaviour relates to customer's psychological state
regarding the accomplishment of online buying (Li & Zhang, 2002).
India had an internet user base of about 354 million as of June 2015 and
is expected to cross 500 million in 2016. Despite being the second-largest
userbase in world, only behind China (650 million, 48% of population), the
penetration of e-commerce is low compared to markets like the United States
(266 million, 84%), or France (54 m, 81%), but is growing at an unprecedented
rate, adding around 6 million new entrants every month. The industry
consensus is that growth is at an inflection point. In India, cash on delivery is
the most preferred payment method, accumulating 75% of the e-retail
activities. Demand for international consumer products (including long-tail
items) is growing much faster than in-country supply from authorized
distributors and e-commerce offerings. Largest e-commerce companies in India
are Flipkart, Snapdeal, Amazon India, Paytm. E-commerce has transformed the
way business is done in India. The Indian E-commerce market is expected to
grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the
growth for the industry has been triggered by an increase in internet and
smartphone penetration. The ongoing digital transformation in the country is
expected to increase India's total internet user base to 829 million by 2021
from 636.73 million in FY19. India's internet economy is expected to double
from US$ 125 billion as of April 2017 to US$ 250 billion by 2020, backed
primarily by E-commerce. India's E-commerce revenue is expected to jump
from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual
rate of 51 per cent, the highest in the world. Propelled by rising smartphone
penetration, launch of 4G network and increasing consumer wealth, the Indian
E-commerce market is expected to grow to US$ 200 billion by 2026 from US$
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38.5 billion in 2017. Online retail sales in India is expected to grow 31 per cent
to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm
Mall. Smartphone shipments in India increased eight per cent y-o-y to reach
152.5 million units in 2019, thereby making it the fastest among the top 20
smartphone markets in the world. Internet penetration in India grew from just
4 percent in 2007 to 52.08 per cent in 2019, registering a CAGR of 24 per cent
between 2007 and 2019. The number of internet users in India is expected to
increase from 687.62 million as of September 2019 to 829 million by 2021.
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In April 2020, Swiggy received an additional USS 43 million funding as
part of its ongoing Series I round.
In May 2020, PepsiCo India partnered with Dunzo for its snack food
brands that include Lay's, Kurkure, Doritos and Quaker.
In May 2021, chocolate maker Hershey India partnered with Swiggy and
Dunzo to launch their flagship online store in order to increase reach.
In Union Budget 2020-23, Government has allocated Rs 8,000 crore (US$
1.24 billion) to BharatNet Project to provide broadband services to
150,000-gram panchayats.
In August 2022, Amazon acquired 49 per cent stake in a unit of Future
Group.
Reliance will invest Rs 20,0000 crore (US$ 2.86 billion) in its telecom
business to expand its broadband and E-commerce presence and to
offer5G services.
In September 2022, PhonePe launched super-app platform 'Switch' to
provide a one stop solution for customers integrating several other
merchants' apps.
In November 2023, Nykaa opened its 55th offline store marking success
in tier Il and tier Ill cities.
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Online offers like Great Indian Festival by Amazon, Big Billion Day by
Flipkart, etc have a huge impact on the customers buying behaviour. Among
this Amazon Great Indian Festival is much more popular.
It is the biggest offer period of the year with mega discounts across
various categories. The e-commerce giant takes care of your savings with
online shopping deals. You get offers on fashion, electronics, accessories,
groceries and more. In addition to the discounts, you can also save with bank
offers and Amazon pay balance offers.
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or virtual store evokes the physical analogy of buying products or services at a
bricks-and-mortar retailer or in a shopping centre. The process is called
Business-to-Consumer (B2C) online shopping. Nowadays almost all biggies in
retail segment are electronically present on the World Wide Web Online
marketplaces have significantly reduced financial and reputational barriers of
entry into world market for Small and Medium Enterprises (SMEs). These
marketplaces provide web presence, marketing and payment services
fulfilment and other services. Due to this Small and Medium Enterprises focus
on their core competencies. These SMEs get chance to build a reputation at
low cost relative to the offline environment by the one click feedback of
customer ratings online.
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by typing its name in navigator browser. Along with this Netscape also issued
Secure Sockets Layer (SSL) encryption to address security issues while doing
online transactions. Another major milestone which took place is the
introduction of PayPal system in 1998. PayPal is the company which provides an
alternative (through the internet) for cash or check payment. As a result of
these two inventions, many European and American businesses created their
ecommerce websites between 1998 and 2000. Some of them were Amazon, e-
Bay, Alibaba, Indiamart. Till the year 2000, a large number of online vendors
came in the industry with the speculation of ever-increasing profit with time.
Unfortunately, in the same year, the e-commerce market went down and many
of players were wiped off from the industry. This downfall even could not stop
the ecommerce industry to grow. Many new players and even the retailers who
were having the brick and mortar stores started offering their products online
by means of their online websites. After year, 2000 to till date the e-commerce
industry kept growing with day by day increasing number of players.
Even like an offline business, many big e-commerce companies started
acquiring small e-commerce companies in order to achieve higher levels of
profit. Some e-commerce companies like Amazon have also issued their IPO so
early in the year 2011 only. After 2000 various different models of E-Commerce
came into existence. Along with this it has been observed that hundreds of e-
commerce services such as online food ordering, media streaming, online
advertising, online marketplace, brick and mortar retailers, e-commerce
payment systems and online store fronts have emerged.
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Online bookstore and IPO
After reading a report about the future of the Internet that projected
annual web commerce growth at 2,300%, Bezos created a list of 20
products that could be marketed online. He narrowed the list to what he
felt were the five most promising products, which included: compact
discs, computer hardware, computer software, videos, and books. Bezos
finally decided that his new business would sell books online, because of
the large worldwide demand for literature, the low unit price for books,
and the huge number of titles available in print.[12] Amazon was founded
in the garage of Bezos' rented home in Bellevue, Washington.[9][13]
[14]
Bezos' parents invested almost $246,000 in the start-up.[15]
On July 16, 1995, Amazon opened as an online bookseller, selling the
world's largest collection of books to anyone with World Wide Web
access.[16] The first book sold on Amazon.com was Douglas
Hofstadter's Fluid Concepts and Creative Analogies: Computer Models
of the Fundamental Mechanisms of Thought.[17] In the first two months of
business, Amazon sold to all 50 states and over 45 countries. Within two
months, Amazon's sales were up to $20,000 per week.[18] In October
1995, the company announced itself to the public.[19] In 1996, it
was reincorporated in Delaware. Amazon issued its initial public
offering of capital stock on May 15, 1997, at $18 per share, trading
under the NASDAQ stock exchange symbol AMZN.[20]
Barnes & Noble sued Amazon on May 12, 1997, alleging that Amazon's
claim to be "the world's largest bookstore" was false because it "...wasn't
a bookstore at all. It's a book broker." The suit was later settled out of
court and Amazon continued to make the same claim.[21] Walmart sued
Amazon on October 16, 1998, alleging that Amazon had stolen
Walmart's trade secrets by hiring former Walmart executives. Although
this suit was also settled out of court, it caused Amazon to implement
internal restrictions and the reassignment of the former Walmart
executives.[21]
In 1999, Amazon first attempted to enter the publishing business by
buying a defunct imprint, "Weathervane", and publishing some books
"selected with no apparent thought", according to The New Yorker. The
imprint quickly vanished again, and as of 2014 Amazon representatives
said that they had never heard of it.[22] Also in 1999, Time magazine
named Bezos the Person of the Year when it recognized the company's
success in popularizing online shopping.[23]
PAYTM: This website started even as mobile recharge app, now Paytm
become the Indian Alibaba. Paytm provides variety of services like mobile
recharges, bill payments, ticket and hotel booking alongside wide selection of
generic products. Paytm offers cash back alongside the discounts, which make
it different from the shopping site. Sometime such cash back make an
enormous difference and save your extra cash.
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The company started as a web marketplace for books but expanded to sell
electronics, software, video games, apparel, furniture, food, toys, and
jewellery. In 2015, Amazon surpassed Walmart, the most precious retailer
within the US by market capitalisation. In 2017, Amazon acquired Whole Foods
Market for US$13.4 billion, substantially increasing Amazon's footprint as a
physical retailer. In 2018, Bezos announced that its two-day delivery service,
Amazon Prime, had surpassed 100 million subscribers worldwide.
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Objective
The 5 Main Objectives of Business
There are five primary objectives of business- economic, social, human,
national, and global. Let's dig deeper into the types of business
objectives.
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Human or Individual Objectives of Business
Human objectives are one of the most crucial primary objectives of
business, targeting the well-being of the employees or workers. Human
objectives include the economic, social, and psychological factors of
employees. The people within the business are critical assets. Be it
planning, strategies, or execution; the people are involved in every
aspect of the business. Therefore, an employee's overall well-being and
development should be emphasized in any business.
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Profit Earning
Every business is centered around the motive of earning profit. This
economic objective of business helps them to generate revenue and
survive in the competitive market. Profits help in wealth creation,
investments, marketing, innovation, and increased social responsibility.
Profit making makes it easy to pave the way for social objectives of
business within and outside the territory of the working space.
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Increasing Productivity
Productivity plays a key role for any business to thrive and expand.
Stagnated productivity or decreased productivity affects the profits and
business operations. Therefore, constant efforts need to be made to
boost productivity in every aspect of a business. Technology, flexibility,
working environment (Check out the best monitors you could procure
for your employees and office), interactions, and human resource
management are significant in increasing productivity.
Employment Generation
Employment generation is highly significant among the social objectives
of a business. Employment is a pathway to the overall growth of an
individual, providing income, financial independence, and opportunities
to different sections of society. Generating inclusive employment
opportunities is an important social responsibility of any business. The
TATA Group is the best example exhibiting employment generation
across industries and demography uplifting society.
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other benefits such as provident funds, pensions, or insurance.
Incentives and other perks can also be provided based on the type of
business.
Community Service
Business owners should extend their services towards the development
of society via community service. Even small initiatives can bring about a
change if done right. There are many ways your company could help
people, like focusing on weaker sections/ classes of society and
providing opportunities to physically and mentally challenged individuals.
Inclusiveness is the key. Although it is not obligatory, community service
is an integral part of the primary objectives of any business.
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leave their jobs, leading to re-hiring new individuals and training them.
Thus, ensuring competitive salaries becomes an integral part of the
human objectives of a business.
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social justice, contribution to the nation, helping self-sufficiency, and
increasing exports.
Sustainable Growth
While conducting business operations and making profits, considering its
impact on the environment is important. So, businesses should find and
look for sustainable alternatives for business operations, causing less
harm to the environment. For instance, use metal or paper cups in your
restaurant instead of plastic ones. Hence, having sustainable growth that
benefits the environment with your business.
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The only constant thing is that things are always changing. Every
business needs to learn and adapt to the ever-changing and competitive
world surrounding them. The changes may be the latest trends,
machinery, equipment, methods, channels, etc. Being prepared to face
challenges and adapt to change is among the primary objectives of
business.
wastage
sick leaves
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How can Amazon Business help you in setting the primary objective of
your business?
Amazon Business could help your business, company, or organization to
achieve primary objectives like profitable product procurement, business
growth, and customer satisfaction. An Amazon Business account gets
you close to the primary business objectives in the following manner:
consumer base
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HISTORY
Jeff Bezos founded Amazon in July 1994. He chose Seattle due to technical
talent as Microsoft is found there. In May 1997, the organization went public.
The company began selling music and videos in 1998, at which time it began
operations internationally by acquiring online sellers of books in United
Kingdom and Germany. The following year, the organization also sold video
games, consumer electronics, home-improvement items, software, games, and
toys additionally to other items.
In 2002, the corporation started Amazon Web Services (AWS), which provided
data on internet site popularity, Internet traffic patterns and other statistics for
marketers and developers. In 2006, the organization grew its AWS portfolio
when Elastic Compute Cloud (EC2), which rents computer processing power
also as Simple Storage Service (S3), that rents data storage via the Internet,
were made available. That same year, the corporate started Fulfilment by
Amazon which managed the inventory of people and little companies selling
their belongings through the corporate web site. In 2012, Amazon bought Kiva
Systems to automate its inventory-management business, purchasing Whole
Foods Market supermarket chain five years later in 2017.
BOARD OF DIRECTORS
As of September 2020, the board of directors is:
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Thomas O. Ryder, former Chairman, and CEO, Reader's Digest Association
Patty Stonesifer, President, and CEO, Martha's Table
Wendell P. Weeks, Chairman, President, and CEO, Corning Inc.
Amazon.com's product lines available at its website include several media
(books, DVDs, music CDs, videotapes and software), apparel, baby products,
consumer electronics, beauty products, gourmet food, groceries, health.
personal-care items, industrial & scientific supplies, kitchen items, jewellery,
watches, lawn and garden items, musical instruments, sporting goods, tools,
automotive items and toys & games. [citation needed] In August 2019, Amazon
applied to have a liquor store in San Francisco, CA as a means to ship beer and
alcohol within the city. Amazon has separate retail websites for some countries
and also offers international shipping of some of its products to certain other
countries.
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Amazon Drive
Echo
Fire tablets
Fire TV
Video
Kindle Store
Music
Music Unlimited
Amazon Digital Game Store
Amazon Studios
Amazon Wireless
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PayPal and has a platform that enabled online merchants to accept credit and
debit cards. Recently, Amazon India has been planning and trying to acquire
the BigBasket, which is India's biggest online food and grocery store, offering
more than 18,000 products.
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nostalgic when frequenting different shopping destinations and markets was
the well-liked thanks to buy goodies and gifts during the festive seasons.
During the offer period, the consumers purchasing behaviour varies a lot from
usual time. They get attracted to the humongous offers for different products,
they tend to make unplanned purchases, they will be ready to spend more
during the offer period, which they consider is worth enough. The purpose of
the study is to better understand the consumer online purchasing
behaviour and its influencing factors during Amazon Great Indian Festival time.
This study provides suggestions to researchers and practitioners in the industry.
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• To understand the effect of Amazon Great Indian Festival in purchasing
behaviour of the customers.
To understand whether the of customers are ready to spend more during
Amazon Great Indian Festival.
To study the level of customer satisfaction during Amazon Great Indian
Festival.
The study is to analyse the effect of Amazon Great Indian Sale on Consumers
buying behaviour. From the time of problem identification stage to the report
writing, the researcher had come across various constraints and these are
listed
below.
The researcher had a very limited time for conducting the study.
The study mainly focuses on Trivandrum district and hence generalizing
it in the global scenario can have significant change in results
The study was conducted during the COVID-19 pandemic situation.
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LITERATURE REVIEW
1. Dr. Parveen Maan, (2018) concludes in his research that Online shopping
has become extremely popular over the last decade. But still the most of the
customers prefer to shop from the physical market. In this category, mostly the
students are involved. Utilized mostly by the "Next Generation", this service is
extremely convenient. Although online shopping can be very convenient and
beneficial there are also some potential problems that can arise. Consumers
are seen to exhibit different buying behaviours when shopping online than the
physical store". He explains that "this makes it imperative that retailers study
the behaviour of consumers and make changes in order to remain profitable
and successful. The results indicate that the respondents mostly from working
segment are adopting the modern shopping methods and have perceived
online shopping in a positive manner
2. Mohammed Anisur Rahman et al. (2018), Bangladeshi online shoppers are
young (mostly below 40 years) similar to other parts of the world. They do
online shopping because it saves time, offers home delivery, provides ease in
shopping and offers more variety of products for apparels, accessories, and
ticketing than that of brick and mortar stores. They mostly rely on price and
their experience as the basis of the quality judgment of items in online
shopping and for payment system they prefer cash on delivery option. Most of
the shoppers get the information primarily from Facebook advertisements
which are pursued by friends and family by following their "word of mouth"
communication. However, privacy and inability to touch and feel are the most
disliking factors for online shoppers. These findings of our study have both
theoretical and practical implications".
3. Priyanka Sharma (2017) performed a research study on Consumer
Behaviour towards Online Shopping in Bhiwani City, Haryana. The main
objective of the research was to identify the relationship of demographic
factors that influence online shopping, to study the preferences of the
consumers toward online shopping and the satisfaction level of the consumers
while they shop online. The sample size of the research was 100 respondents.
After the data analysis and interpretation, the researcher found out that the
internet has given huge scope for businesses through online. The people having
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an annual income below Rs 2,50,000 opts cash on delivery and above Rs
2,50,000 opts online payments options. The most of the people having annual
income below Rs 4,50,000 spends between 1500-3000 per month for online
shopping. People having annual income above Rs 4,50,000 spends above 3000
per month for online shopping. The Majority of the respondents buys from
flipkart.com which is one of the most popular online shopping platforms in
India. The main barrier is the safety of payment and privacy issue in the
process of online shopping. Sellers have to make proper strategies to increase
the consumer's level of trust with them.
4. Pawn Kumar, Kanchan (2017) performed a research study to understand
Online Shopping Behaviour among Students in Ludhiana, Punjab, India. The
main objective of the research was to understand the online purchase
behaviour of youth in India and to study the factors which contribute to online
shopping. The sample size of the research was 400 respondents from Ludhiana
city. As a result of data analysis, the researchers found that students are those
who mostly go for online shopping. There are several factors such as quality of
products, delivery time, products checking on the spot, return policy etc. which
customer look before online shopping. So the online retailers must be aware of
these factors to be successful and retain the customers
.
5. M. Dhanalakshmi, M. Sakthivel, M. Nandhini (2017) performed a
research study on Customer Perception towards Online Shopping in Salem. The
main objective of the research was to study the customer perception towards
online shopping at Salem district. The sample size of the research was 150
respondents. The researchers had adopted random convenience sampling
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technique to gather the data. The researchers conclude that the consumer's
perception of online shopping varies from person to another and the
perception is limited to a certain extent by the availability of the proper
connectivity and the exposure to the online shopping has to be improved to
make the customer satisfied. The perception of the consumer also has
similarities and difference based on their personal characteristic usage based
on their needs and demand. The study reveals that most the students are
attached to the online shopping and hence the elder people don't use online
shopping much as compared to the younger ones, so awareness has been
fashioned in the coming era. Finally, the researchers suggested that the online
transaction should be flexible for the customers who perceived in shopping.
6. Dr. T. Thirupathi and I. James (2017) performed a research study on
shopping becoming popular now days. Even though some problems are
identified from the online shopping, still it is convenient and beneficial from
the respondent's point of view. The research study reveals that specifically the
younger generations are mostly and frequently engaged in process of online
shopping. No doubt, the factors viz., quality, discount, simple payment
methods, less expensive are the factors influenced the online buyers and
account for consumer satisfaction.
7. Ashwini. N, Manjula. R (2016) performed a research study on "An
Empirical Study on Consumers Perception towards Online Shopping". The main
obiective of the research was to understand the key motivators for consumers
to search and shop online. It also investigates how different types of online
buyers perceive a website differently. The sample size of the research was 40
respondents. The findings of the proposed research work are as follows as that
online consumer concerns about lack of opportunity to examine the products
prior to purchase are regarded as specific factor affecting the online buying
decision. Also Customer goes online very often to compare the prices and
features of the various branded products and services. Then Most of the
respondents say online shopping helps them quick accessibility of a wide
variety of products. Cash on delivery and easy replacement are one of the
advantages of online shopping. Finally, the researcher concludes that Online
shopping enables the customers to buy from any part of the world at any time
providing better opportunity and also benefits like cash on delivery, easy
replacement, convenience, fast refund, time saving and secured Delivery of the
product, confidentiality, etc. The site enables them to browse before they shop,
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and to research the product so they have more confidence in what they are
buying.
8. Manisha Kinker, N.K. Shukla (2016) performed a research study to
understand the Consumer Behaviour towards Online Shopping of Electronic
Goods in Bhopal and Jabalpur city. The main objective of the research was to
study in detail about consumer Behaviour towards online shopping of
electronic goods, to study consumers expectations of online stores, to find out
factors that influences the consumers towards online shopping and to analyse
the consumers wants and needs in Bhopal and Jabalpur city. The sample size of
the research was 40 respondents of Bhopal and Jabalpur city. The researcher
found out Time Saving, Product Quality, Product Price, Convenience,
Accessibility, Shop Anywhere and Anytime as the main factors that influence
customers attitude towards online shopping of electronic products. The
secondary factors that influences customers attitudes towards online shopping
of electronic products are technological factors, assured quality, cash on
delivery and various promotions and discounts. The attitude towards online
shopping is different in Bhopal and Jabalpur city. c
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characteristics, psychological characteristics, social characteristics and cultural
characteristics. Some other factors that influence of online shopping decision
are Motivations, Convenience, Price visibility, New design, Saves travel time,
Website security, Easy payment, Cash on delivery and Free home delivery.
Finally, the researcher concludes that the convenience and trust were the most
essential factors for consumers when they decide to shop online. Buying online
can be of great benefit to the consumer in terms of convenience, saving time
and money.
10. Dr. A. T. Jaganathan, et, al (2016), performed a research study on
consumer's perception on online shopping and found that it varies from person
to another and the perception is limited to a certain extent with the availability
of the proper connectivity and the exposure to the online shopping has to be
improved to make the customer satisfied. The perception of the consumer also
has similarities and difference based on their personal characteristics usage
based on their needs and demand. The study reveals that mostly the students
are attached to the online shopping and hence the elder people don"t use
online shopping much as compared to the younger ones, so awareness has
been fashioned in the coming era. Finally, we are suggested that the online
transaction should be flexible for the customers who perceived in shopping.
11. Nausherwan Raunaque, Md. Zeeshan, Md.Azam Imam, (2016), their
research proposed, "While online shopping customers generally have trust
issues which include the fear of losing money and expecting a product of
substandard quality". In order to deal with the money and trust concerns of the
customers, several regulations have been implemented to satisfy customers,
needs which help in building trust of the customers on the online marketing.
Due to improvement in these policies customers feel free and secure to shop
online and participate in online purchasing process. Easy refund and return
policies, money back guarantee schemes are a few of important factors which
help in improving the customers assurance and hence the perception towards
online
12. Pritam P. Kothari, Shivganga S. Maindargi (2016) performed a research
study on A Study on Customers Attitude towards Online Shopping in India and
its Impact: With Special Reference to Solapur City. The main objective of the
research was to highlight the factors which online Indian customers keep in
mind while shopping. The sample size of research was 100 respondents from
Solapur city. The researcher had used sampling method and Krejcie and
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Morgan formula to calculate the sample size. After the data analysis and
interpretation, the researcher found that occupation of consumers is
independent of Purchase habit of consumers in online shopping. Finally, the
researcher concluded that the future of online shopping in India looks very
bright. Online shopping gives customers best alternatives to save money and
time. Companies Offers detail product information, easy mode of payment,
facility of comparison of price and very important completely hassle-free
shopping experience. The Success of online shopping depends on its
popularity, its brand image and its unique promotional policies.
13. S. Aruna, A. John William (2015) performed a research study on
Consumer Behaviour towards Online Shopping in Combatore District.
The main objective of the research was to analyse the shopping Behaviour of
online shoppers and to identify the successful online shopping. The sample size
of the research was 384 respondents. From the result, the researchers found
out that people mostly prefer online shopping over traditional shopping
because of the technological developments and its convenience. Even though it
is convenient there are various factors such as price, quality of the product and
delivery time which customers look before shopping. So, the online retailers
must be of aware of these factors to be successful and retain the customers.
The final result from the study is that online shopping is growing rapidly in a
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positive manner.
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shopping online. So, the online retailers must be of aware of these factors to be
successful and retain the customers. The final result from the study is that,
online shopping is growing rapidly in a positive manner. By removing little
flaws, it can be even more successful
16. G.R.Shalini, K.S. HemaMalini (2015) conducted a research work on
Characteristics of Online Shopping and their Consumer Intention towards the
Purchase of Online Products in the Chennai city. The sample size of the
research was 320 respondents from Chennai city. The researcher had used
Stratified sampling and simple random sampling methods. The nature of the
study was exploratory and descriptive because both primary and secondary
data have been used. The study reveals that there is positive relationship
between the website characteristics and attitude, trust and intention towards
online purchasing.
17. Renuka Sharma, Kiran Mehta, Shashank Sharma (2014) performed a
research work on to understand the Online Shopping Behaviour of Indian
Consumers. The main obiective of the research was to understand the online
buying behaviour of consumers in India and to get information about the scope
of improvement in online shopping platforms. The sample size of the research
was 120 respondents. After the data analysis, the researcher found out that
Indian customers are also getting addicted to the online shopping and they do
like various features of online shopping like cash on delivery, convenience, wide
variety of choices, etc.
18. Prashant Singh (2014) performed a research work on Consumer's
Buying Behaviour towards Online Shopping, a study of Flipkart.com user's in
Lucknow City. E-retailers give consumers the best way to save money and time
through purchasing online within the range of budget.
Flipkart.com offering some of the best prices and completely hassle-free
shopping experience. The whole concept of online shopping has altered in
terms of consumer's purchasing or buying behavior and the success of E tailers
in India is depending upon its popularity, its branding image, and its unique
policies.
19. Prof. Ashish Bhatt (2014) performed a research work on Consumer
Attitude towards Online Shopping in Selected Regions of Gujarat. It was stated
that online shopping is gaining popularity among people specially the younger
generation but in today scenario to become equally popular among all age
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groups e-marketing will have to cover a longer distance. As per study mode of
payment is depended upon income of the respondents. People from different
age groups are doing online shopping regularly. The attitude of consumers is
changing with the time. In a country like India, consumers are finding online
shopping very comfortable because of many variables like cash on delivery,
customization or personalization of the websites, home delivery etc.
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factors impacting online shopping Behaviour of consumers with special
emphasis on Age, Gender, Education, Income Possession of internet, Frequency
of online purchase, Motivation drives for online purchase. The sample size of
the research was 70 respondents. The researcher had used "ANNOVA" method
for the analysis of data. After the data analysis, the researcher concludes that
the gender does impact Possession of internet and Frequency of online
purchase of consumer's occupation is a demographic variable which does not
impact any of the variable. The respondents had perceived online shopping in a
positive manner. On-line shopping in India is significantly affected by various
Demographic factors like age, gender, marital status, family size and income
22. Dr. M.Rajesh and G. Purushothaman (2013), study conclude that, online
shopping has becoming more popular day-by-day with then increase in the
usage of (WORLD WIDE WEB) known as www. understanding the consumer's
attitudes towards online shopping, making improvement in the factors that
influence consumers to shop online and working on factors that affect
consumers to shop online will help marketers to gain the competitive edge
over others. From the above data analysis it can be conclude that, "consumer
buys goods from the online shopping website on the basis of factors like offers
and discounts, variety of product available, free home delivery, website user
friendliness" and the hypothesis framed for the project "Consumer Perception
towards Online Shopping" is beneficial for the consumer.
23. Chandra and Sinha, (2013), considered that, today the fresh and latest
styles of retail shopping are online shopping. It has at the present been
adopted all over the world as well as India. In a lot of other countries this
shopping way is still not as well known or accepted, and though the knowledge
of online shopping in India is now commencement to boost quickly .
24. Bashir, (2013), concluded that E-commerce has completely life very easy
and innovative of individuals and groups; Consumer Behaviour in online
shopping is different from the physical market anywhere he has right of entry
to see the product, revealed that Consumers, all over the world, are more and
more shifting from the packed supplies to the one click online shopping format.
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THEORETICAL FRAMEWORK
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and Baber et al. (2014) mentions the third one as perceived simple use, and
usefulness Another dimension covers perceived risk which determine
consumer's behaviour towards online shopping.
Furthermore, Li & Zhang (2002) mentioned that there are two differing types of
perceived risk involved in determining consumer's behaviour during online
shopping process. it's further described because the first category of perceived
risk involved in online product and repair i.e. financial risk, time risk, and
merchandise risk while the opposite category of perceived risk involved in e-
transactions including privacy and security (Li & Zhang, 2002). Many
researchers (Kumar & Dange, 2014; Samadi & Nejadi, 2009; Hassan et al. 2006;
Subhalakshami & Ravi, 2015) argued that perceived risk like financial risk,
product risk, non-delivery risk, time risk, privacy risk, information risk, social
risk, and private risk have a negative and significant effect on consumer's online
shopping behaviour. Another dimension of consumer's behaviour is trust and
security on e-retailers, Monsuwe et al. (2004) suggested that positive shopping
experience builds consumer's trust on e-retailers and reduces the perceived
risk.
Factors influence online consumer's behaviour.
Kumar & Dange (2014) mentioned that there are two components of perceived
risk that are involved in online shopping which are uncertainty and therefore
the significance of the results of particular purchase. Uncertainty is related to
the possible outcomes of positive or negative behaviour and undesired results
of these consequences. Uncertainty is also linked with the possible loss of cash
while making a financial transaction for a specific product on the internet
(Kumar & Dange, 2014). Financial transactions on the internet are linked to
various risk factors (Adan, 2014). Furthermore, Adan (2014) mentioned that
the customers perceive different risk factors before transferring money to
online merchant. These factors could be financial loss, security and privacy.
Naiyi (2004) claimed that different dimensions of perceived risk like e-retailer
source risk, purchasing process & time loss risk, delivery risk, financial risk,
product performance risk, asymmetric information risk, and privacy risk
regarding online shopping intentions have negatively impacted consumer's
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online shopping behaviour.
CONCEPTUAL MODEL
The following conceptual model is developed on the idea of prior researches
presented into the literature review regarding external online shopping factors.
the aim of conceptual model is to look at the web shopping behaviour of
Uppsala University students and other people visiting University's library at
Gotland campus. This model examined the connection between independent
and dependent online shopping factors. supported the presented literature,
the independent factors are perceived risk (financial risk, product performance
risk, and no delivery risk), psychological factors (trust and security), and
website design factor while dependent factor is consumer's online
shoppingbehaviour.
Although this sort of conceptual model is employed in several prior studies to
live the consumers' online shopping behaviour, there are several independent
online shopping factors which influence consumer's online shoppingbehaviour.
it's hard to live all online shopping factors in one model, so this research paper
measures and analyzes only five independent online factors which influence
consumer's online shopping behaviour. By examining these selected factors, it
also reveals the limitation of this conceptual model.
It is mentioned above about the selection of five online factors that have been
chosen after reading the relevant literature in the field of consumer'sbehaviour
in online shopping. These factors are further described in the following section.
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FINANCIAL RISK
A recent study was conducted by Kumar & Dange (2014) where the aim are to
research different dimensions of perceived risk that influence the consumer's
online shopping behaviour. The results of study revealed that online shopping
perceives risk with regard to financial risk, time risk, social risk, and security risk
as they influenced more online consumer's attitude towards online shopping.
On the opposite hand, an equivalent two online buying risk factors are financial
risk, and security risk that have influenced on non-online shoppers.
Furthermore, their study has found two additional barriers of psychological risk
and physical risk among nonbuyer.
Another recent study was conducted by Babar et al. (2014); they used a
Technology Acceptance Model to look at the various factors influence
customers intention to buy online. This study has investigated the influence of
usefulness, simple use, financial risk, and attitude towards online shopping.
The findings indicate that financial risk have a negative impact on the attitude
towards online shopping where the rationale states that consumer have a fear
of monetary loss and security concern over the web shopping. Gozukara et al.
(2014) research claimed that the perception of risk played an important role to
create the connection between purchase intentions and hedonic motivations.
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Furthermore, the study concluded that perceived risk had a negative impact on
consumer's intention toward utilitarian motivation. In contrast, the perceived
risk had no negative impact on influencing consumer's intention toward
hedonic motivation
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the buyer feels safe and secure from undesired product delivery problems.
Adan (2014) indicated that the merchandise delivery had a negative impact on
consumer's buying behaviour. Furthermore, Adan (2014) suggested that online
merchants should provide insurance coverage to online buyers if an item isn't
delivered to the buyer in time. Consumers fear to not receive products in time
or delay in delivery which results in a high product delivery risk (Yeniçeri & Akin
2013). Moshref et al. (2012) aimed to look at " An analysis of things affecting
on online shopping behaviour of consumers" in an Iranian perspective and
determined the impact of varied perceived risk factors (financial risk, product
risk, convenience risk and non-delivery risk) in online purchasing behaviour. to
look at the hypothesis of this study, they chose different online
stores in Iran and distributed 200 questionnaires among randomly selected
online consumers Their study concluded that two perceived risk (financial, and
non-delivery) had negatively affected online shopping behaviour of Iranian
consumers while other perceived risk (domain specific innovativeness and
subjective norms) had a positive effect on online shopping behaviour of Iranian
consumers.
According to Koyuncu & Bhattacharya (2004), many purchasers had less
intention to buy online due to the involvement of delivery risk. The results of
the study found that individuals who buy online once every week or make
several online purchases during a month had negative impact of product
delivery risk, in contrast to those that do online shopping but once a month
that they had a positive impact of product delivery.
TRUST & SECURITY FACTOR
According to Ariff et al. (2013), psychological factor like trust associated with
the extent of the protection an internet site provides and keeps customer's
personal information safe. Furthermore, Ariff et al. (2013) mentioned that trust
and security had a crucial and positive affect on consumer's attitude in online
shopping. Yörük et al. (2011) conducted a study among Turkey and Romanian
consumers' online shopping behaviour and located that in online shopping
environment, trust and security factors were the main obstacles for consumers
to not shop online. They preferred to travel around markets to buy products
through physical inspections especially Turkey's consumer are more socialized
and luxuriate in to travel to bazaars and spend hours in the shopping malls.
Roman (2007) argued that the safety factor indicates consumer's belief
regarding online shopping also because the security of consumer's financial
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information which shouldn't be compromised or shared with a 3rd party in
online shopping context. Ahuja et al. (2007) research claimed that the trust and
security are main obstacles for consumers to not shop online. According to
Elliott & Speck (2005), trust is a crucial factor and broadly affects the web
shopping attitude thanks to online advertisement and online site that takes
time to download webpages associated with consumer's concern towards
online security which can steal personal information.
Monsuwe et al. (2004) research claimed that the breach of consumer's trust
results in negative attitude toward online shopping. On the opposite hand,
keeping consumer's personal information safe and secure results in more
positive attitude toward online shopping. Thus, the trust was an important
psychological factor which affects the intentions of consumer to buy online. A
study by Grabner-Kraeuter (2002) identified two dimensions of trust related
issues: System dependent uncertainty and Transaction specific uncertainty" in
online shopping environment, the study used economic model of trust and
concluded that the trust is more important and basic factor for the reduction of
uncertainty and complexity of monetary transactions and relationship.
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use, perceived usefulness, and trust influence consumers' intentions to buy
online the info was collected through questionnaire and thorough interviews. it
had been collected within the sort of a questionnaire through 350 experienced
online consumers in Bangkok, Thailand then descriptive analysis and path
analysis were used to scrutinize the info. The study revealed that the web site
perceived simple use and usefulness. The trust had significant influence on the
consumers' intention to buy online. The results found that the web site had
significant effect on the consumer's online shopping attitude and online
consumer prefers to possess a user-friendly website in online shopping
environment. The study concluded technology acceptance factors and trust
that had significant relationship with intentions towards different products and
services and also towards intended behaviour to shop.
Adan (2014) aimed to research the influence of various dimensions of
perceived risk, perceived advantages, psychological factors, hedonic
motivations, and website design on online shopping behaviour. The study
distributed 100 questionnaires to online buyers in Pakistan. The research found
that perceived advantages and psychological factors had a positive influence on
the consumers' intentions to buy online while perceived risk had a negative
impact on the consumers' attitude toward online shopping. Other factors like
website design and hedonic motivations had not any significant impact on the
consumers' intentions to shop online. Hassan & Abdullah (2010) tried to work
out the influence of independent variables website design, trust, internet
knowledge, and online advertising consumer's online shopping behaviour. He
used a questionnaire survey and it had been filled in by online customers and
test the hypothesis. The results of the study indicated four independent
(website design, trust, internet knowledge, and online advertising) variables
where online shopping had a positive correlation. Furthermore, the research
claimed that website quality had significant impact on online shopping. The
research suggested that the planning of internet sites should be easy to use,
convenient, time saving, easy to load webpage, simple navigation. The comfort
of employing a web page will increase the probability of revisiting increase.
Osman, et al. (2010) investigated the web consumer behaviour towards online
shopping and used convenience sampling method. The study adopted self-
constructed questionnaire and was distributed among 100 undergraduates of
University Putra Malaysia. The study examined the four different parts and
factors of online shopping attitude like students socio demographic
background, website quality, purchase perception and attitude. The results of
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the study revealed that website quality purchase perception, gender and
academic background had direct impact on consumer's attitude towards online
shopping. The findings of study indicated that an honest website quality has
different dimensions of accurate information, quick launch of webpage, and
website connection fast to online shopping. Furthermore, they argued that
77% respondents were willing to shop for through an honest and top quality
website design while 76% online consumers agreed to shop for through safe
and straightforward to use website design.
Lepkowska-White (2004) conducted a study on "Online Store perception: the
way to Turn Browsers into Buyers?". The study distributed a questionnaire
survey among New England consumers and selected 231 online adult browsers
and 311 online adult buyers. The study claimed that the web browsers as
compared to online buyers were less attractive towards internet shopping. the
explanations and concerns for internet browsers were the standard of website
design.
Li & Zhang (2002) conducted a study supported 20 empirical articles. the aim of
the study was to scrutinize the impact of website quality on e-commerce.
supported content analysis of these studies their research findings indicated
that website design had positively and significantly influenced consumer's
attitude towards online shopping. On the opposite hand, they also found that
website design had two different segments which consumer perceived in
website design that were hygiene and motivation. Furthermore, they
mentioned privacy and security, easy navigation of website, and complete
information associated with hygiene segment. The absence of hygiene results
in dissatisfaction of consumer's need as compared to enjoyment, quality,
cognitive outcome, user empowerment, and e-retailer information that's linked
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to motivation segment in website design. These factors of motivation segment
increase the worth of website design and satisfied consumer's need. In short,
an honest and appealing website design can be helpful for consumers to form
their e-shopping easy and smooth. On the opposite hand, a low-quality website
design might be a barrier for consumers to not shop online.
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DEMOGRAPHICS CHARACTERISTICS
Online buyers have different characteristics with varying motives to buy online,
consequently have been extensively studied, in the context of attitude,
behavioral intention and adoption of online buying with respect to different
categories of products and different cultural settings. The factors what
characterize the consumer demographic profile: age, sex, occupation,
education, family status, income, living conditions and life expectancy
(Andersone & Gaile-Sarkane, 2009). Age, education and profession have been
reported to have significant impact against other variables- income, gender and
ethnicity.
Regarding gender there is no consensus e.g. Chinese male and female
consumers hold similar online shopping intentions (Wen Gong & Maddox,
2011). Same is found even in developed countries. Yet, few reported males
more likely to shop online (Cha, 2011). Interestingly, different online buying
motives have been reported for both the gender. In the same Chinese study
age and Perceived risk were not found significantly different, but income and
marital status were found to have influence on online buying intentions.
Contrary to other findings married with children are more likely to buy online
as compare to singles or married with no children. Which is consistently found
in other studies as well (Brown, Pope, & Voges, 2003). Students as online
buyers have been studied (Al-Swidi, Behjati, & Shahzad, 2012).
TRUST, RISK AND SECURITY
To overcome the inherent limitation of employing different IS-adoption models
which have their foundations in TRA other related psychological theories,
construct of trust, risk and security concerns have been strongly established in
the online buying literature. "Online trust has been reported to be an integral
component of customer purchase intention in the context of both developed
and developing countries (Thamizhvanan & Xavier, 2013). Perceived trust has
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been reported as positively influencing intention, adoption and continuation
behaviour. Other equally important, extensively studied and found as predictor
variables are- risk (having inverse relation) and privacy & security concerns.
Online security concern varies over the product category bought online (Cha,
2011).
SOCIAL INFLUENCES
Subjective norm is defined as -the perceived social pressure that most people
who are important to him/her think he/she should or should not perform the
behaviour in question (Ajzen, 1991; Cameron, Ginsburg, Westhoff, & Mendez,
2012; Fishbein & Ajzen, 2011). SN have been found to be strongly influencing
intention to buy online (Turan, 2012) (Cha, 2011). - Product characteristics
Three major types of product: search, experience, and credence goods (Luo et
al., 2012). Search products are those that can be evaluated from externally
provided information. Experience products, on the other hand, require not
only information, but also need to be personally inspected or tried. Credence
products are those that are difficult to assess, even after purchase and use
(Brown et al., 2003 (Cha, 2011). "Tactility" is ability to examine/ test, in terms
of touch and sight, a product (Alkailani, 2009). Findings for this construct as an
has mixed results in different cultural environments e.g. Chinese are not more
concerned about the lack of face-toface contact or the inability of them to
touch and feel tangible products or credit as against Americans (Wen Gong et
al., 2012). Study comparing online buying intention of "real" vs. "virtual" items
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reported different criterion employed for each by online buyer (Cha, 2011).
There is no uniformly accepted standard product classification available
(Sarigiannidis & Kesidou, 2009) so far in the context of online buying. For
virtual items PEU, PU, enjoyment and security have not found significant,
hence proposed different strategy for both types of items.
SHOPPING ORIENTATIONS
Different shopping orientations have been found (Brown et al., 2003) when
exploring different motivations e.g. personalizing shoppers, recreational
shoppers, economic shoppers, involved shoppers and convenience shoppers.
"Impulse purchase orientation" has significant impact on the customer online
purchase intention but "quality orientation" and "brand orientation" also has
not impact (Thamizhvanan & Xavier, 2013). But there is no consensus on the
relevant classification of online buyers. Moreover, which class dominates the
total segment of online buyers is not identified. Some study reported
convenience as the major orientation other highlighted economy or
personalizes. Moreover, shopping orientation is not found significant enough
for online buying intentions.
WEBSITE CHARACTERISTICS
Website design along with customer service and pricing have been reported as
major "retailer characteristics" affecting online buyer satisfaction (Luo et al.,
2012) (Mishra & Priya Mary Mathew, 2013). Perceived control over site
navigation and product category are primary factors influencing website
quality. Study highlights that "high trust consumers" who spend more and buy
more often online the "return policy" cannot compensate the poor website
design (Bonifield et al., 2010). Website quality influence consumers'
perceptions of product quality, and affect online purchase intentions (Sun,
Chen, & Huang, 2014) and even continuation intentions. Signal credibility
found to strengthen the relationship between website quality and product
quality perceptions for a high-quality website.
OTHER VARIABLES
Internet Proclivity is frequency of internet usage (Alkailani, 2009) has been
studied. "Prior online purchase experience" positively effect on the customer
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purchase intention (Brown et al., 2003) even in the context of developing
countries (Thamizhvanan & Xavier, 2013). Many other diverse variables
have been reported.
RESEARCH METHODOLOGY
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The credibility of findings and conclusions extensively depend on the quality of
the research design, data collection, data management, and data analysis. This
section is dedicated to the description of the methods and procedures done in
order to obtain the data, how they will be analysed, interpreted, and how the
conclusions will be done.
OBJECTIVES OF THE STUDY
1. To study the consumers overall online purchasing behaviour
2. To understand the effect of Amazon Great Indian Sale in purchasing
behaviour of the customers.
3. To understand the spending behaviour of customers during Amazon
Great Indian Sale.
4. To study the level of customer satisfaction during Amazon Great Indian
Sale.
HYPOTESIS
HI: Amazon Great Indian Festival has a significant relations hip with customers
purchasing behaviour.
H2: There is no significant impact on customers spending decision during
Amazon Great Indian Festival.
H3: Level of customer satisfaction during Amazon Great Indian Festival is low.
RESEARCH DESIGN
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Research design is an agreement or condition for collection and analysis of data
that aims to combine significance to the research with an economy in process.
Here Descriptive research design is used.
SOURCES OF DATA
For the further development of this study, mainly two sources were used:
Primary and Secondary Data.
NEERING
PRIMARY DATA AND SECONDARY DATA
The necessary data have been collected from both primary sources and
secondary sources.
• Primary data
The primary data was collected by means of a survey. A structured
questionnaire was developed and distributed through online in Trivandrum.
• Secondary data
The secondary data was collected from company website, company brochures,
journals, and reference books.
POPULATION
The study mainly focuses on Trivandrum District.
SAMPLING DESIGN
A sampling is a definite plan for obtaining a sample from given population.
Here, non-probability technique is used for data collection through samples.
SAMPLING TECHNIQUE
A purposive sampling technique was applied to select the sample items from
the population., also referred to as a judgmental or expert sample, is a type of
nonprobability sample. The main objective of a purposive sample is to produce
a sample that can be logically assumed to be representative of the population.
METHOD OF DATA COLLECTION
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A structured questionnaire was developed and distributed online ca. The first
part of the questionnaire intends to collect the demographic information of the
respondents and it was followed by questions regarding the concept of
webrooming and showrooming. A five-point Likert scale was used in the
questionnaire.
DRAFTING A QUESTIONNAIRE
A structured questionnaire was prepared and it was distributed through google
sheets. The questionnaire starts with the demographic factors of the
respondents and it is followed by sections of question regarding Customer
Purchasing Behaviour and Amazon Great Indian Festival. Detailed
questionnaire was attached in the Appendix 1.
PILOT STUDY
Pilot survey is in fact the replica and rehearsal of the main survey. Such a
survey, being conducted by experts, brings to the light the weaknesses (if any)
of the questionnaires and also of the survey techniques. From the experience
gained in this way, improvement can be affected.
The questionnaire was shared with randomly selected 300 respondents in
order to identify the ambiguities in the questionnaire. To ensure the validity of
the questionnaire a thorough literature review was conducted and expert
opinions were gathered.
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T-TEST (The One Sample T-Test determines whether the sample mean is
statistically different from a known or hypothesized population mean.)
RELIABILITY TEST
Reliability is consistency of measurement (Bollen, 1989), or stability of
measurement over a variety of conditions in which basically the same results
should be obtained (Nunnally, 1975).
Cronbach Alpha is the measure to check reliability of the instrument. According
to some previous research done in the area Alpha value above 0.6 is
acceptable. With the help of SPSS 20, Reliability test has been performed on
Likert Scale items. For attitudinal scale used in questionnaire, the Cronbach
Alpha value obtained was 0.934. Therefore, the research instrument used was
considered as reliable.
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By leveraging data and analytics, Amazon Business can provide retailers with
valuable insights into their purchasing patterns, helping them make informed
decisions and improve their business strategies.
6. Customized solutions:
our app can offer personalized recommendations and tailored product
offerings based on the specific needs and preferences of each retailer,
enhancing their shopping experience.
7. Reliable and secure transactions:
With Amazon Business, retailers can have peace of mind knowing that their
transactions are conducted on a trusted platform with secure payment options,
ensuring a safe and reliable purchasing process.
8. Support for growth and expansion:
By connecting small retailers with big wholesalers, Amazon Business can
provide opportunities for growth and expansion, allowing retailers to access a
wider range of products and scale their businesses.
9. Community and networking:
our app can foster a sense of community among retailers, providing a platform
for networking, knowledge-sharing, and collaboration, ultimately strengthening
the business ecosystem.
Positive impact of are innovation on business community -)
fostering growth
When it comes to fostering growth, innovation plays a crucial role for
businesses like Amazon. By constantly seeking new ideas and
approaches, Amazon can expand its product offerings, enter new
markets, and attract a wider customer base. This growth can lead to
increased revenue, market share, and overall success for the company.
Additionally, fostering growth through innovation can create more job
opportunities, stimulate economic development, and drive positive
change in the industry.
It's exciting to see how innovation can fuel growth and open up new
possibilities for businesses like Amazon
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Enhanced customer
experience
Through innovation, Amazon can introduce new features, services, and
technologies that improve the overall shopping experience for
customers. This can include faster delivery options, personalized
recommendations, and convenient payment methods.
Increased efficiency
Innovation can streamline operations within the Amazon business,
making processes more efficient and cost-effective. This can lead to
faster order fulfillment, optimized inventory management, and reduced
operational expenses.
Sustainability
initiatives
Amazon can use innovation to drive sustainability efforts, such as
implementing eco-friendly packaging, optimizing transportation routes
to reduce emissions, and promoting recycling and waste reduction.
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CASE STUDY
We can consider implementing a subscription model in the Amazon Business
app. Sellers who opt for the subscription would be charged a yearly fee of
₹5000. In return, they would enjoy a reduced commission rate of 10% on their
sales. On the other hand, sellers who choose not to subscribe would have a
higher commission rate of 15% applied to their sales. This approach aims to
incentivize sellers to subscribe and benefit from the lower commission rate,
while still providing an option for sellers who prefer not to subscribe.
It's a strategic way to encourage seller participation and generate revenue
for the platform.
Questionnaire with charts
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Questionnaire with charts
1. How do you think the new Amazon Business app can benefit small retailers
in terms of connecting with big wholesalers?
a) Expand inventory options and competitive pricing
b) Streamline procurement workflow
c) Simplify communication with wholesalers
d) All of the above
3. From your perspective, how do you think the Amazon Business app can help
streamline the purchasing process for small retailers?
a) Centralized platform for browsing and ordering products
b) Efficient procurement workflow
c) Simplified communication with wholesalers
d) All of the above
4. What do you think are the potential challenges or obstacles that small
retailers might face when using the Amazon Business app to connect with big
wholesalers, and how do you think those challenges can be addressed?
a) Competition from other retailers
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b) Managing inventory levels
c) Building relationships with wholesalers
d) All of the above
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5. In your opinion, what are the key advantages of using the Amazon Business
app compared to traditional methods of connecting with wholesalers for small
retailers?
a) Vast selection of products
b) Competitive pricing
c) Convenience of a digital platform
d) All of the above
6. How do you envision the Amazon Business app impacting the overall success
and growth of small retailers who rely on connecting with wholesalers for their
inventory?
a) Expanding inventory options
b) Improving profitability
c) Thriving in a competitive market
d) All of the above
7. How do you think the Amazon Business app can help small retailers expand
their product offerings and compete in the market?
a) By providing access to a wider network of wholesalers and a variety of
products.
b) By offering tools for inventory management, order tracking, and analytics.
c) By enabling retailers to make data-driven decisions and optimize operations.
d) All of the above.
8. In your opinion, what are some potential benefits for big wholesalers in
partnering with Amazon Business and utilizing their new app?
a) Access to a large customer base and increased sales volume.
b) Streamlined order processing and fulfillment, improving operational
efficiency.
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c) Enhanced credibility and visibility through Amazon's brand reputation.
d) All of the above.
9. Do you think the Amazon Business app has the potential to disrupt the
traditional supply chain model? Why or why not?
a) Yes, by connecting retailers and wholesalers on a centralized platform.
b) No, because traditional supply chain players can adapt to the changing
landscape.
c) It depends on industry dynamics and adoption rates.
d) All of the above.
10. What are some additional features or improvements you would like to see
in the Amazon Business app to further enhance the experience for both small
retailers and big wholesalers?
a) Enhanced search and filtering options.
b) Integration with popular accounting and inventory management software.
c) Advanced analytics and reporting capabilities.
d) All of the above.
Suggestion
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1, Get as much reviews as possible
In addition to the seller’s rating and product price, Amazon also uses the
keywords in the product title to rank the listing. Amazon’s product titles are
limited to 500 characters and are recommended to include brands, descriptions,
product line, materials, colors, and sizes.
Sellers can use the Amazon Keyword Tool to find popular long-tailed title
keywords, and find the keywords that are right for you among these keywords,
and then enter them into Google’s Keyword Planner Tool to evaluate the search
volume of these keywords.
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Besides the product title, Amazon has other keyword fields. You can enter five
keywords or phrases into the fields. Remember, do not use keywords that
already appear in the title.
Inventory, logistics, customer service, and prices are important factors to win
Buy Box. Repricing tools such as FeedVisor or teikametrics can help you
monitor competitors ‘prices 24 hours a day. For example, you can set your price
$0.01 lower than that of your competitors and keep your price competitive at all
times. If your competitors are out of stock, these tools automatically raise prices
to maximize your profits.
If you want to make your product attractive, try Amazon sponsored product
service, which gets your product listed in the search results, in the right column
of the page, or on the product details page. Amazon announced that it plans to
enhance this feature to make ads more visible. More important, it offers a free
trial.
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Discounts are an important way to attract consumers. Promotions and discounts
can place you at the top of the category, while also increase your probability of
appearing in the ‘Hot Deals’ and’ New & Noteworthy’ sections of amazon’s
homepage, which can bring you significant traffic and increase the exposure of
related products on your page, and further attract consumers to buy other
products.
Although Amazon does not allow email or other means that lead consumers to
links to other sites, you can instead direct consumers to your Amazon store from
other sites. Articles and blogs are great ways to achieve the goal. Write some
articles about your products on websites such as Hubpages, Go Articles and
Isnare and links back to your store.
Leaving coupons with your packing list is also an effective way to keep
customers. Lightning deal, one-time promotions and free delivery are all
effective ways to attract consumers to place orders again.
Now, let’s look at a real case together! ToiletTree is an Amazon seller in New
Jersey, USA.
They put a lot of effort into building their websites and get huge traffic from
Google through SEO optimization and keyword advertising.
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At the same time, they make great efforts to integrate their online store with
social platforms like Facebook and Amazon.
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Facebook Page:
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As you can see from this actual case, the net profit of this product of ToiletTree
is at least $10. At such a high price, It can manage to rank first in the sub-
category of Amazon and top 50 in the category. That’s where American sellers
stand out!
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Conclusion
The study consisted with ail the workflows of major e-commerce palyes in
India, Amazon. Hew-they are performing and how they are running perfectly in
the competitive world has been explained. The innovative thinking of them to
reach more and more consumers is appreciable. The increased their network as
much as possible with ultimate aim of reaching more and more customers.
They made consumers work more easy and comfortable, In this competitive
market one has tp; be lead; and rest will follow, Based upon consumer's survey
we got our clear winner and it is Amazon. Even though it is an international
company it understood Indians very well and made its roots stronger in India,
Amazon is also giving very tough competition to Flipkart even though it is new
company when compared to Amazon. May be it takes some time to overcome,
but definitely they are doing very well in Indian e-commerce market.
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Limitations
The initiative combines three tools: automated protections, a self-service
counterfeit removal tool, and product serialization codes as an attempt to
drive down the number of counterfeit goods available on its marketplace.
Previous efforts by Amazon to stop the flood of fake goods, such as the
‘Brand Registry’2 program launched in 2017, have proven to be
ineffective for many brands, with some going as far to say that they
merely pay lip service to the problem. Although Project Zero in theory is
a good sign of progress, there are constraints to Amazon’s approach
and questions remain surrounding where accountability should lie. Below
are the six key limitations that we have identified to the initiative in its
current form.
Brands retain responsibility for removing counterfeits
Self-service removal data also feeds into the automated protection tool
and will likely require significant enforcement input from the brand to
ensure Amazon gets takedowns right.
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Flawed ASIN system
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BIBLOGRAPHY
References Textbooks
Marketing Management by Philip Kotler, Kevin Lane Keller, Abraham Koshy and
Raithileshwar Jha.
Journals and Papers
"Prospects of e-commerc in India" by Sharma and Mittal (2009)
"Finding the Source of Amazon.com; examining the hype of the earth's biggest
book, store" by Martin Dodge. (1999).
Web Address:
http://www.google.com
http://www.wikepedia.com
http://www.amazon.in
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