Professional Documents
Culture Documents
On
Submitted for partial fulfillment of the requirements for the award of the degree
Of
BY
(1710101125)
Miss. SHWETA
(ASSISTANT PROFESSOR)
SESSION 2019-20
A comparative study between Amazon and Flipkart on the basis of electronic items.
CERTIFICATE
TO WHOME IT MAY CONCERN
This is to certify that I Rishabh Arora student of BBA – V Semester in our institution has
successfully completed his project work entitled “A COMPARITIVE STUDY
BETWEEN FLIPKART AND AMAZON ON THE BASIS OF ELECTRONIC
PRODUCT” for the partial fulfillment of the degree of Bachelor of Business
Administration for the session 2019 – 20.
ACKNOWLEDGEMENT
I would like to express my thanks of gratitude to my teacher Miss. Shweta (Assistant
Professor) faculty of Management Invertis University for her excellent guidance and
moral support at every step of my work. Her vast knowledge, scientific temperament,
critical evaluation, encouragement supervision and patient outlook have always been
constant sources of inspiration for me. Apart from helping me, she understands the
problem associated with me.
Rishabh Arora
BBA 5thSEM
1710101125
A comparative study between Amazon and Flipkart on the basis of electronic items.
CONTENTS
A comparative study between Amazon and Flipkart on the basis of electronic items.
LIST OF TABLES
A comparative study between Amazon and Flipkart on the basis of electronic items.
LIST OF FIGURES
A comparative study between Amazon and Flipkart on the basis of electronic items.
A comparative study between Amazon and Flipkart on the basis of electronic items.
CHAPTER 1
INTRODUCTION
1
A comparative study between Amazon and Flipkart on the basis of electronic items.
INTRODUCTION
Ever since internet has been introduced to the world, it has made a huge impact on
people; business is one of such example where internet has made the difference. In July
1995 Amazon.com started selling books online and the response they received was
unexpected as in short time span books sold online in all 50 states of USA and 45
countries. Amazon presently offers music, movies, toys; electronics and home equipment,
Today there are over 100 popular ecommerce websites are providing online services
worldwide. An E-commerce opens the global market to the customer, it helps the
customer by providing huge options while buying a product or a service, the online
searching and comparing facilities enables customer to select right product or service,
another major advantage of e-commerce is that it is 24x7 available to the customer the
customer can shop almost anything within his/hers comfort zone just by sitting at home,
office, during travel or almost from any place at any time.
E-commerce is trading of services and products with the help of internet. E-commerce
introduced in the end of 70s and became popular during the 90s in western countries like
USA and UK.
A customer simply has to visit an E-commerce website and browse various offering
through browser catalog, a customer can select multiple offerings and can add them to the
shopping cart, once the shopping is done the customer can checkout and proceed to
payment section where various online payment options are available like internet
banking, credit card, debit card etc. Once payment is done the customer is notified about
the order and order is shipped on the postal address provided by the customer.
2
A comparative study between Amazon and Flipkart on the basis of electronic items.
Online shopping is the process whereby consumers directly buy goods or services from a
seller in real-time, without an intermediary service, over the Internet. It is a form of
electronic commerce. The sale or purchase transaction is completed electronically and
interactively in real-time such as in Amazon, Flipkart or new books. However in some
cases, an intermediary may be present in a sale or purchase transaction such as the
transactions on pay tm, free charge etc.
An online shop, e-shop, e-store, internet shop, web shop, web store, online store, 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. This is the type of electronic commerce conducted by companies
such as Amazon, Flipkart etc. When a business buys from another business it is called
Business-to-Business (B2B) online shopping.
Customer ratings are a key element of the marketplaces, enabling SMEs to build a
reputation at low cost relative to the offline environment. This element of reputation may
be achieved quickly (just one piece of feedback generates a rating) and is tied to
particular platforms (i.e. ratings are non-transferable).
3
A comparative study between Amazon and Flipkart on the basis of electronic items.
Amazon distributes downloads and streaming of video, musicbook, through its Amazon
prime video, Amazon music, and audible subsidiaries. Amazon also has a publishing
arm, Amazon publishing, a film and television studio, Amazon studios, & a cloud
computing subsidiary, Amazon web services. It also produces consumer
electronics including Kindle, e-readers, Fire tablets, Fire TV, and Echo devices.
In 2009 the company introduced its first publishing line, Amazon Encore, dedicated to
popular self-published and out-of-print books. It also let individuals publish their own e-
books. In 2011 its e-book ambitions led to the launch of Amazon Publishing with the
intent to develop and publish its own titles. That year Amazon announced that Kindle e-
books were outselling all printed books. While many book publishers continue to derive
significant revenue through sales at Amazon.com, the company is no longer considered
by publishers merely as another bookseller. It is now also a major competitor in their
industry.
4
A comparative study between Amazon and Flipkart on the basis of electronic items.
The service competes primarily with Amazon’s Indian subsidiary, and the domestic
rival snapdeal As of March 2017, Flipkart held a 39.5% market share of India's e-
commerce industry. Flipkart is significantly dominant in the sale of apparel (a position
that was bolstered by its acquisitions of Myntra and Jabong.com), and was described as
being "neck and neck" with Amazon in the sale of electronics and mobile phones
Flipkart also owns PhonePe , a mobile payments service based on the Unified Payments
Interface (UPI).
In May 2012, Flipkart acquired Letsbuy, an online electronics retailer. In May 2014,
Flipkart acquired Myntra, an online fashion retailer, for ₹20
billion (US$290 million). Myntra continues to operate alongside Flipkart as a standalone
subsidiary; the site focuses on an upscale, "fashion-conscious" market, while Flipkart
itself focuses on the mainstream market and major international brands.
In February 2014, Flipkart partnered with Motorola Mobility to be the exclusive Indian
retailer of its Moto G Smartphone. Motorola also partnered with Flipkart on the Moto E
a phone targeted primarily towards emerging markets such as India. High demand for the
phone caused the Flipkart website to crash following its midnight launch on 14 May.
In March 2015, Flipkart blocked access to its website on mobile devices, and began
requiring that users download the site's mobile app instead. The following month, Myntra
went further and discontinued its website on all platforms, in favour of operating
exclusively through its app. The "app-only" model, however, proved to be unsuccessful
for Myntra (reducing sales by 10%), and its main website was reinstated in February
2016. The experiment with Myntra led to suggestions that Flipkart itself would perform a
similar move, but this did not occur.
In November 2015, Flipkart launched a new mobile website branded as "Flipkart Lite",
which provides an experience inspired by Flipkart's app that runs within smartphone web
browsers.
5
A comparative study between Amazon and Flipkart on the basis of electronic items.
CHAPTER 3
LITERATURE REVIEW
6
A comparative study between Amazon and Flipkart on the basis of electronic items.
LITERATURE REVIEW
//BREAK THE PARAGRAPH
//FORMAT THE PARAS
Martin Dodges (1999): finding the source of Amazon.com: examining the hype of
the earth’s biggest book store”, center for advanced spatial analysis. Concluded that
Amazon com has been one of the most promising e-commerce companies and has grown
rapidly by providing quality service.
Miyazaki and Fernandez (2001): substantiated that the prior experience was found
to affect the intention and behavior significantly and in a variety of ways. The results of
this study imply that the technology acceptance model should be applied to electronic
commerce research with caution. In order to develop a successful and profitable web
shop, understanding customers' needs is essential. It has to be ensured that products are as
cheap in a web shop as purchased from traditional channels. According to sharma and
mittal (2009) in their study prospects of e-commerce in India”, mentions that India is
showing tremendous growth in the e-commerce.
Samadi and Ali (2010): compared the perceived risk level between internet and store
shopping, and revisit the relationships among past positive experience, perceived risk
level, and future purchase intention within the internet shopping environment.
Dr. Sudha S (2015): Innovation brings with itself a new set of challenges. The E-
Retailing form of market was fairly something unheard of to the Indian consumer in
2007. Flipkart which has carved a niche for itself in terms of market share, goodwill and
popularity in the online market to the extent that retailers are coming under threat because
of its discounts and smooth operations. The ascent of Flipkart to capture the online
market in India in just four years, the strategies implemented by it to create online
business ,its ability to stand out among numerous E-Retail sites. This case study aims to
understand the marketing strategy, brand awareness, SWOT analysis, functioning of
Flipkart. It aims to predict the future roadmap and also aims to find significant threats to
Flipkart in the near future.
8
A comparative study between Amazon and Flipkart on the basis of electronic items.
Pooja Gupta (2015): The study tries to recognize that, how consumer measure
channels for their purchasing. Specifically, it progresses a conceptual model that
addresses consumer value perception for using the internet shopping versus the
traditional shopping. Earlier study showed that perceptions of price, product quality,
service quality and threat strongly impact perceived value and purchase intents in the
offline and online network. Observations of online and offline buyers can be evaluated to
see how value is constructed in both channels. It is hitherto to recognize what factors
influence online and offline shopping choice progression. The objective of this study is to
provide an impression of online shopping decision process by comparing the offline and
online decision making and identifying the factors that motivate customers to decide
whether to do online shopping or go for the offline shopping. Consumer’s shop when and
where they want, where they are comfortable with the products and the choice of
shopping. The study finds that female are more into online shopping than male.
K Francis Sudhakar (2016): Internet became more powerful and basic tool for
every person’s need and the way people work. By integrating various online information
management tools using Internet, various innovative companies have set up systems for
taking customer orders, facilitate making of payments, customer service, collection of
marketing data, and online feedback respectively. These activities have collectively
known as e-commerce or Internet commerce. Online shopping made so easy for everyone
with their product variations and simple way to buy things. An attempt has been made to
critically examine various corporate and business level strategies of two big e-tailers and
those are Flipkart and Amazon. Comparison have been done considering e-commerce
challenges, their business model, funding, revenue generation, growth, survival
strategies, Shoppers’ online shopping experience, value added differentiation, and
product offerings.
Mesay Sata : tried to study factors affecting mobile buying decision. The study reveals
that there are six major factors which affect the buying decision of electronic items With
Price, product and brand the other factors are social group, durability and customer care.
Mobile phone features also plays an important role in buying decision.
Debasish and Mallick: in their research paper compared buying behaviour of rural
and urban consumers towards mobile phone. The study considers four factors for
comparison which are Brand, Price, Looks and Functions. The study reveals that the rural
consumers are less conscious about quality, functions and brand of the mobile as
9
A comparative study between Amazon and Flipkart on the basis of electronic items.
compared to the urban consumers. The study reveals that rural consumers trust on
friends, TV and mobile phone retailers to obtain information of the product. On the other
hand, urban consumers are taking the help of friends and internet for taking information
about the product.
CHAPTER 3
RESEARCH OBJECTIVES, RESEARCH DESIGN, RESEARCH
METHODOLOGY
10
A comparative study between Amazon and Flipkart on the basis of electronic items.
1. RESEARCH OBJECTIVES:
To know how much consumers are evaluating e-commerce sites for the
purchasing electronic items.
To know the preference of the consumer regarding the two online sites.
To understand the consumer perception towards buying of electronic items
through online sites.
To know the factors which influence the purchase decision on electronic products
by the consumers.
To know the problem which the consumer faces during their online purchase.
To know the suitable suggestion on the basis of it.
2. RESEARCH DESIGN:
Research design is an important and the vital part of the research. Research
design is a comprehensive master plan specifying the procedure of collecting and
analysis the needed information. Research design provides an excellent
framework for the research plan of action. The function of the research design is
to ensure that the required data is in accordance, research design is a blue print for
the research study , which guides research in collecting and analysis the data.
Exploratory Research:
Exploratory research conducted for a problem that has not been clearly defined.
Exploratory research helps determine the best research design, data collection
method and selection of subjects. It should draw definitive conclusions only with
extreme caution. Exploratory research often relies on secondary research such as
reviewing available literature and/or data, or qualitative approaches such as
informal discussions with consumers, employees, management or competitors,
and more formal approaches through in-depth interviews, focus group sand
projective methods.
11
A comparative study between Amazon and Flipkart on the basis of electronic items.
Descriptive research:
The objective of descriptive research is to describe the characteristics of various
aspects, such as the market potential for a product/company or the demographics
and attitudes of consumers who buy the product with the help of primary data
collected.
Data Collection
The goal for all data collection is to capture quality evidence that then translates
to rich data analysis and allows the building of a convincing and credible answer
to questions that have been posed.
Primary Data :
Primary data was collected from various people and their opinion and
information for the specific purposes of study helped to run the analysis. In
essence, the questions asked were tailored to elicit the data that will help for
study. The data was collected through questionnaire to understand their
experience and preference towards their loyal company.
Secondary Data:
To make primary data collection more specific, secondary data will help to make
it more useful. It helps to improve the understanding of the problem. Secondary
data was collected from various sources such as different business websites and
published papers.
3. RESEARCH METHODOLOGY:
Research methodology deals with the various methods of research. The purpose
of the research methodology is to describe the research procedure used in the
research. Research methodology overall includes the research design, data
collection method and analysis procedure which are used to explore the insight
information from the research problem. Research methodology helps in carrying
out the project report in by analyzing the various research findings collected
through the data collection methods.
12
A comparative study between Amazon and Flipkart on the basis of electronic items.
CHAPTER 4
DATA PRESENTATION AND INTERPRETATION
13
A comparative study between Amazon and Flipkart on the basis of electronic items.
AGE GROUP
Table: 4.1
DATA INTERPRETATION
Out of 100% , 50% of consumers are less than 25 years of age, 21.7% of the
consumers are between 25-35 years of age, and 18.3% of consumers comes to
the others.
14
A comparative study between Amazon and Flipkart on the basis of electronic items.
GENDER
Table: 4.2
DATA INTERPRETATION
Out of 100%, 60% of the consumers are male and 40% of the consumers are female.
15
A comparative study between Amazon and Flipkart on the basis of electronic items.
Table: 4.3
Figure no. 4.3: showing have you done online shopping or not.
DATA INTERPRETATION
Out of 100%, 96.7% of the consumers have done the online shopping before, while 3.3%
of the consumers have not done the online shopping before.
16
A comparative study between Amazon and Flipkart on the basis of electronic items.
Table: 4.4
DATA INTERPRETATION
Out of 100%, 30% of the consumers shop online once a month, 41.7% of the consumers
shops by the online sites once in 2 months, 20% of the consumers shop online more
frequently and 8.3% of the consumers shops very often bye the online sites.
17
A comparative study between Amazon and Flipkart on the basis of electronic items.
Table 4.5
Figure 4.5: showing the online site preferences for buying the electronic items.
DATA INTERPRETATION
Out of 100%, 38.3% of the consumer prefers to buy any electronic item from flipkart,
while 55% of the consumers prefer to buy from the Amazon and remaining 6.7% prefer
to buy electronic items from other online sites.
18
A comparative study between Amazon and Flipkart on the basis of electronic items.
Table: 4.6
Figure 4.6: showing how the consumer pays when they shop online.
DATA INTERPRETATION
Out of 100%, 26.7% of the consumers are paying from their debit cards when they do
online shopping, 10% of the them are paying through credit card, 51.7% the majority of
the consumers is paying when they get the delivery of the product i.e through cash on
delivery, and the leftover 11.7% of the consumers are paying digitally from their paytm
wallets, phone pe etc.
19
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.7: showing that which online sites the consumer will prefer for purchasing
electronic items.
DATA INTERPRETATION
Out of 100%, 58.3% the majority of the consumers prefer to buy electronic items from
the Amazon, 36.7% of the consumer prefers to buy the product from the flipkart. While
the other 5% will prefer to buy the product from the other online sites.
20
A comparative study between Amazon and Flipkart on the basis of electronic items.
Table: 4.8
Figure 4.8: showing that on which occasion the consumer purchases electronic
items.
DATA INTERPRETATION
Out of 100%, 20% of the consumers purchases the electronic items for the festive
seasons, 28.3% of them purchases it for the gift purpose, while the majority of 48.3%
purchases them when the company introduces the offers, and the rest 3.3% purchases
them for the wedding purpose.
21
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.9: Graph depicting which online site satisfies customer the most in terms of
pricing of electronic items.
DATA INTERPRETATION
Out of 100%, 53.3% of the customer satisfaction lies with online site Amazon when
pricing of electronic items are considered while 40 % of customers think Flipkart
provides better pricing of electronic items. The remaining 6.7% of customer falls in
other category.
22
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.10: Graph depicting customer preference for purchase of electronic item
through online site.
DATA INTERPRETATION
Out of 100%, 76.7% of the customer satisfaction lies with online site for the purchase of
electronic items .The remaining 23.3% of customers does not prefer online sites for
purchase of electronic items.
23
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.11: Graph depicting number of purchase of electronic items through online
site by customers.
DATA INTERPRETATION
Out of 100%, 40% of customers purchased only 1 electronic item through online sites
while 46.7% of the customers purchased electronic items 2-3 in numbers. There were
only 5% of customers that purchased 4-5 electronics while the remaining 8.3% of
customers purchased more than 5 electronic items.
24
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.12: Graph depicting type of electronic items purchased through online site
by customers.
DATA INTERPRETATION
Out of 100%, 65% i.e. the majority of customers brought mobile phones through online
sites. 6.7 % of customers bought television, 3.3 % of customers brought microwave, 8.3
% of customers bought speakers while the remaining 16.7 % bought other electronic
items. Out of the responses gathered no customers bought Laptop & Washing machine
through online sites.
25
A comparative study between Amazon and Flipkart on the basis of electronic items.
DATA INTERPRETATION
Out of 100%, around 18.3 % of customers spent in bracket of 10-15000, 15% of
customers spent less than 5000 on electronic items while the remaining 48.3 % spent
more than 15000 for electronic items purchase through online sites.
26
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.14: Graph depicting that how many brands did the customer compare
while purchasing the electronic items.
DATA INTERPRETATION
Out of 100%, around 8.3 % of the customer chooses only one brand for purchasing the
electronic items, 70% of customers prefer to compare 2-3 brands while shopping, 11.7%
of the customer prefers to compare 4-5 brands ,while the remaining 10% prefers to
compare more than 5 brands to purchase any electronic items.
27
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.15: Graph depicting factors influencing customer’s decision for purchase
of electronic products.
DATA INTERPRETATION:
The bar graph depicts factors influencing customer’s decision for purchase of electronic
products .It shows the ‘Quality of the product’ influence the most while ‘Free shipping’
have least influence on customer’s purchase decision for electronic products.
28
A comparative study between Amazon and Flipkart on the basis of electronic items.
DATA INTERPRETATION
Out of 100%, 50% of customers agree that promotional activities have prominent impact
on buyer’s decision for purchase of electronic items, 26.7 % neither agree nor disagree,
while 18.3 % of customers strongly agree. Remaining 3.3 % strongly disagree that
promotional activity does not help in taking purchase decision.
29
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.17: Graph depicting that what problems have encountered while purchase
of electronic items.
DATA INTERPRETATION:
Out of 100%, 38.3% of the customers have encountered the problem while purchasing
electronic items through flipkart, 23.3% of the customers have the similar problem when
they made a purchase through Amazon. The remaining 38.3% of the problems belong to
other category.
30
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.17: Graph depicting that what problems are faced by the customers while
purchasing the electronic items from Flipkart.
DATA INTERPRETATION:
Out of 100%, 21.7% of the customers face the problem of delay in delivery, 25% of the
customers face the problem of the cheap quality of the product, while other 8.3% of the
customers receive the problem of the product damage, and the majority of 45% of the
customer faces on problem while purchasing the electronic items through flipkart
31
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.17: Graph depicting that what problems are faced by the customers while
purchasing the electronic items from Amazon.
DATA INTERPRETATION:
Out of 100%, 13.3% of the customers face the problem of delay in delivery, 6.7 % of the
customers face the problem of the cheap quality of the product, while other 8.3% of the
customers receive the problem of the product damage, 3.3% of the customers faces the
problem of non delivery of the product and the majority of 68.3% of the customer faces
on problem while purchasing the electronic items through Amazon.
32
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.20: Graph depicting customer assistance after purchase of product from
Flipkart.
DATA INTERPRETATION:
33
A comparative study between Amazon and Flipkart on the basis of electronic items.
Figure 4.21: Graph depicting customer assistance after purchase of product from
Amazon.
DATA INTERPRETATION:
34
A comparative study between Amazon and Flipkart on the basis of electronic items.
CHAPTER 5
RESEARCH FINDINGS
35
A comparative study between Amazon and Flipkart on the basis of electronic items.
36