CHAPTER- 1

1
 Introduction
Flipkart is India’s largest electronic commerce company, founded in 2007 by

Sachin Bansal and Binny Bansal. It operates exclusively in India, where it is

headquarter in Bangalore, Karnataka, though Flipkart is actually registered and
based in Singapore. Flipkart has launched its own product range under the name
“DigiFlip” with products such as tablets, USBs, and Laptop’s bags. Flipkart has
also launched its own range of personal healthcare and home appliances under the
brand “Citron”.

Legally, Flipkart is not an Indian company, since it is based in Singapore, and

majority of its shareholders and investors are foreigners. In May 2014, Flipkart
received $210 million from DST Global and in July it raised $1 billion led by
existing investors Tiger Global and South Africa's media group Naspers.

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both
alumni of the Indian Institute of Technology of Delhi. They had been working
for Amazon previously. The business was formally incorporated as a
company in

October 2008 as Flipkart Online Services Pvt. Ltd. During its initial years,
Flipkart focused only on books, and soon as it expanded, it started offering other
products like electronic goods, air conditioners, air coolers, stationery supplies and
life style products and e-books.

The first product sold by them was the book Leaving Microsoft to Change the

2
World, bought by VVK Chandra from Andhra Pradesh. Flipkart now employs
more than 15000 people. Flipkart allows payment methods such as cash on
delivery, credit or debit card transactions, net banking, e-gift voucher and card
Swipe on delivery.

Things are easier said than done! To realize our dreams and that also in such a
grand manner is really a tough task. The founders of Flipkart have probably
conquered their dreams with the amazing success of Flipkart.
Flipkart is something which has really opened up the Indian e-commerce market
and that also in a big way. Flipkart was co-founded by Sachin Bansal and
Binny Bansal in Oct 2007. Both are graduates from IIT-Delhi and have prior
work experience in Amazon.com They both were solid coders and wanted to open
a portal that compared different e-commerce websites, but there were hardly any
such sites in India and they decided to give birth to their own e-commerce venture-
Flipkart.com Thus was born Flipkart in Oct 2007 with an initial investment of 4
lac (co-founders savings).It was never going to be easy since India has had bad
past experiences with e-commerce trading. It was not an easy segment to break
into, people were very particular in paying money for something which they had
not seen and received. The trust was missing in the Indian customers. So what
Flipkart had to do was to in still trust and faith in their customers. And they did
exactly the same, will discuss more on how they did so later in the post. Flipkart
began with selling books, since books are easy to procure, target market which

3
(Sachin Bansal and Binny Bansal)

reads books is inabundance, books provide more margin,

are easy to pack and deliver, do not get damaged in transit and most importantly
books are not very expensive, so the amount of money a customer has to spend to
try out one's service for one time is very minimal. Flipkart sold only books for
the first two years. Flipkart started with the consignment model (procurement
based on demand) i.e. they had ties with
4
2 distributors in Bangalore, whenever a customer ordered a book, they used to
personally procure the book from the dealer, pack the book in their office and
then courier the same. In the initial months the founder's personal cell
numbers used to be the customer support numbers. So, in the start they tried
their best to provide good service, focus on the website - easy to browse and
order and hassle-free, and strove hard to resolve any
customer issues. Since there were not any established players in the market,
this allowed them a lot of space to grow, and they did in fact grew very
rapidly .Flipkart had a revenue of 4 crore in FY 2008 - 2009, 20 crore in FY
2009 - 2010, 75 crore in FY 2010 - 2011, and the revenue for FY 2011 - 2012
which ends on 31 Mar 2012 is expected to be 500 crore. This is indeed a
massive growth. The company targets revenues of 5000crore by

2015.

The company started from 2 employees and now has around 4500 employees.
Flipkart started with consignment model as discussed above, since most of
the customer issues like delivery delays etc. result from procurement model,
the company started opening its own warehouses as it started getting more
investments. The company opened its first warehouse in Bangalore and later
on opened warehouses in Delhi, Kolkatta and Mumbai. Today the company
works with more than 500 suppliers. As on date more than 80% orders of
Flipkart are handled via warehouses which help in quick and efficient
service. A humble beginning from books, Flipkart now has a gamut of
products ranging from: Cell phones, laptops, computers, cameras, games,
music, audio players, TV's, healthcare products, washing machines etc. etc.
Still, Flipkart derives around 50% of

5
its revenue from selling books online. Flipkart is the Indian market leader in
selling books both offline and online, it enjoys an online share of around
80%. The electronic items have a large number of players like Naaptol,
Letsbuy, Indiaplaza, Tradus, Infibeam, Yebhi etc. The electronic market
share is distributed among them in different unknown proportions. India has
around 13.5 crore internet users today where as the number of homes with
Cable and Satellite (C&S) television is 10.5 crore. The expected internet
users will reach a figure of 30 crore by 2014 and C&S homes are expected to
be 14 crore by 2014. Thus India has a tremendous internet growth and with
the customers getting accustomed to e-commerce, the future of e-commerce
sector is definitely rosy. An approximated 25 lac people have transacted
online this year, the number is all set to increase with time. Also to mention
most of the Flipkart customers use internet from PC's/Laptops to order
goods. The use of mobile internet is very less at the moment, but with the
advent of smart phones the use of mobile internet for e-commerce
transactions will soar with time. India has 8crore mobile net users at the
moment, the number is expected to swell to 22.5 crore by 2014.

Description

Name >> Flipkart

Type >> Private
Founded >> 2007
Headquarters >> Bangalore, Karnataka, India
Area served >> India

6
Founder(s) >> Sachin Bansal and Binny Bansal
Industry >> Internet
Services >> E-commerce
Employees >> 33000
Slogan(s) >> BachateyRaho!
Website >> www.flipkart.com
Alexa rank >> 87
Users >> 26 million
Orders >> 5 million per month
Page Visit >> 8 million Daily
Website >> www.flipkart.com

Initially, they had spent INR 400,000 only for making website to set up the
business. Flipkart has later raised funding from venture capital funds Accel
India (US$1 million in 2009) and Tiger Global (US$10 million in 2010 and
US$20 million in June 2011). On 24 August 2012, Flipkart announced the
completion of its 4th round of $150 million funding from MIH (part of
Naspers Group) and ICONIQ Capital. The company announced, on 10 July
2013, that it has raised an additional $200 million from existing investors
including Tiger Global, Naspers, Accel Partners and Iconiq Capital.

Flipkart's reported sales were INR 40 million in FY 2008–2009, INR 200 million
in FY 2009–2010 and INR 750 million for FY 2010–2011. In FY 2011–2012,
Flipkart is set to cross the INR 5 billion (US$100 million) mark as Internet usage
in the country increases and people get accustomed to

7
8
making purchases online. Flipkart projects its sales to reach INR 10 billion by year
2014. On average, Flipkart sells nearly 10 products per minute and is aiming at
generating a revenue of INR 50 billion (US$0.81 billion) by 2015.

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

Flipkart reported a loss of INR 281 crore for the FY 2012-13. In July 2013,
Flipkart raised USD 160 million from private equity investors.

In October 2013, it was reported that Flipkart had raised an additional $160
million from new investors Dragoneer Investment Group, Morgan Stanley
Wealth Management, Sofina SA and Vulcan Inc. with participation from
existing investor Tiger Global.

On 26 May 2014, Flipkart announced that it has raised $210 million from Yuri
Milner’s DST Global and its existing investors Tiger Global, Naspers and
Iconiq Capital.

In early July 2014, it was also highly speculated that Flipkart was in
negotiations to raise at least $500 million, for a likely listing in the US for
2016.

On 29 July 2014, Flipkart announced that it raised $1 billion from Tiger Global
Management LLC, Accel Partners, and Morgan Stanley Investment Management
and a new investor Singapore sovereign-wealth fund GIC.

9
On 6 October 2014, Flipkart sold products worth INR 650Crore in 10 hours
in a special one-day event - "The Big Billion Day", claiming they had
created e-commerce history, but their hard-won reputation for good customer
service suffered because of technical problems, and angry reactions on social
media from buyers disappointed with the pricing and availability of products.
It claimed to sell a whopping 5 lakh mobile handsets, five-lakh clothes and
shoes and 25,000 television sets within hours of opening its discounted sale
at 8 AM. In December 2014, After it received $700 million from another
funding, Flipkart had a market cap of $11 billion or Rs.66000 crore.

On 20 December 2014, Flipkart announced filing application with Singapore

based companies' regulator ACRA to become a public company after raising
USD 700 million for long term strategic investments in India following which
its number of investors exceeded 50. The USD 700 million fund raised by
Flipkart added new investors - Baillie Gifford, Greenoaks Capital, Steadview
Capital, T. Rowe Price Associates and Qatar Investment Authority - on
company's board.Its existing investors DST Global, GIC, ICONIQ Capital and
Tiger Global also participated in this latest financing round.

INTRODUCTION TO E-COMMERCE:

Electronic commerce, commonly known as ecommerce, is a type of

industry where buying and selling of product or service is conducted over
electronic systems such as the Internet and Other computer networks.
Electronic commerce draws on technologies such as mobile commerce,

10
electronic funds transfer, supply chain management, Internet marketing,
online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. Modern
electronic commerce typically uses the World Wide Web at least at one point
in the transaction's life-cycle, although it may encompass a wider range of
technologies such as e-mail, mobile devices social media, and telephones as
well.

Electronic commerce is generally considered to be the sales aspect of e-

business. It also consists of the exchange of data to facilitate the financing and
payment aspects of business transactions.

E-commerce can be divided into:

1. E-tailing or "virtual storefronts" on websites with online catalogues,

sometimes gathered into a "virtual mall".

2. The gathering and use of demographic data through Web contacts and
social media.

3. Electronic Data Interchange (EDI), the business-to-business exchange of

data.

4. E-mail and fax and their use as media for reaching prospective and
established customers (for example, with newsletters).

5. Business-to-business/ Business-to-Customer buying and selling.

6. The security of business transactions etc…

Growth and progression of E-commerce in India:

11
The e-commerce market in India has grown by 34% in the last seven years, was
about USD600 million in 2011-12 and is expected to touch USD 9 billion by
2016 and USD 70 billion by 2020. According
to Forrester, the Indian E-commerce market is expected to grow at a CAGR of
over 57% between 2012 and 2016, which is the fastest within Asia- Pacific region.

The key factors that are driving this growth are the rise of Internet usage (growing
at 20%) &3G penetration, and increasing Smartphone users with availability of
Internet on mobile phones. It is estimated that currently there are 27 million
mobile Internet users in India out of which 4% are buying products on mobile.
This figure is expected to increase to 20% mobile shoppers in the next four years.
These factors accompanied by busy lifestyles, traffic congestion, lack of offline
shopping time, great deals and discounts offered online, and use of innovative e-
commerce models such as group buying and second-hand sales have led to more
and more consumers switch to online shopping. With the rising middle class
incomes, global exposure and changing demographics (close to 50% of the
population is less than 25 years of age), this trend also holds true for the Tier II &
III cities.

Online travel (76 per cent) and financial services (10 per cent) form the
biggest component of online shopping followed by e-tailing (8 per cent).
While services such as travel tickets, movie tickets, restaurant discount
vouchers, hotel bookings, utility payments,
insurance policies, and premium payments lead the wallet share of the am
ount spent online, productcategories such as computers & accessories,
cameras & mobiles, electronic durables,
and books are picking up. But, product categories such as apparel, jeweller y
and footwear(require high touch and feel), which offer maximum potential in
terms of market size, faces challenges such as high return rate and negative
cash cycles due to COD (cash on delivery).

However, the e-commerce industry today faces certain challenges. Firstly, there
is a very

12
 low penetration of credit/debit cards in India, which restricts the online purc
hasing power. Eventhough strategies such as cash on delivery have been
introduced, they have their own nuances and pose high working capital issues
to the companies. Secondly, high volume items such as refrigerators require
high freight & shipping costs and because the e- commerce model in India is
based on free shipping concept, sale of such items online could suffer a
setback. Finally, the distribution & logistics in India is not very well organized
and prone to fraud. Hence, buying of high value items such as jewelry,
electronic goods (LCDs), which require travel insurance adding up to the total
costs may not be one of the bestsellers in the digital space.

The key to success in this segment is delivering high quality user experience
which includes differentiated and detailed product catalogue, order
fulfillment, website performance, different modes of transaction(credit cards,
payment gateways, cash on delivery etc.), and simple and sensible checkout.
Furthermore, with the increase in competition in this segment, the e-
commerce players need to invest in research and development of differentiated
product catalogues, innovative service and customer engagement concepts, and
cost effective supply chain and logistics models

INTENTION TO SHOP ONLINE

Consumer’s intention to shop online refers to their willingness to ma(e

purchases in an Internet store. Commonly this factor is measured by consumer’s
willingnesst o b u y a n d t o r e t u r n fo r a d d i t i o n a l p u r c h a s e
s . & h e l a t t e r a l s o c o n t r i b u t e s t o customer loyalty.
Consumer6s intention to shop online is positively associated
withattitude towards Internet buying 0 and influences their ' ec
ision/ ma( ing and purchasing behaiour. In addition0 there is eidence of r
eciprocal influence between intention to shop online and customer satisfaction

13
Criticism
Flipkart received mass criticism on the subject of Net Neutrality after their
partnership with Airtel to use Airtel Zero platform which would had made the
Flipkart app free for Airtel Users.On 14 April 2015 Flipkart pulled back its
decision to use Airtel Zero platform

On 6 October 2014 Flipkart launched Big Billion Day with intention to

increase the popularity by targeting billion sales in 1 day. This even though
helped Flipkart achieve the target led to public outcry and widespread
criticism across consumers, competitors and partners heavily damaging its
reputation.

Many users could not place the order because the servers were not capable enough
to take the load and was giving random errors to users which led to frustration
among customers. Many users who placed orders got email saying that the order
got cancelled. Most of the products were sold for

14
price less than cost price and was accused of killing the competition. Major
competitors filed complaints against Flipkart to commerce ministry claiming
that selling products for less than cost price is against the commerce policy of
the country. Ministry said that they will form new trade rules for e retail after
this incident.

On 13 September 2014, a Flipkart delivery boy molested a house maid in

Hyderabad. The house maid's employer has been fighting against Flipkart for
justice on this issue, and also for making offline delivery services safe.

Awards and recognition

Co-Founder of Flipkart Sachin Bansal, got Entrepreneur of the Year Award
2012-2013 from Economic Times, leading Indian Economic Daily Flipkart.com
was awarded Young Turk of the Year at CNBC TV 18's 'India Business Leader
Awards 2012' (IBLA).
Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow Awards
2011.

15


16
Mobile Phone
From budget phones to state-of-the-art smart phones, we have a mobile for
everybody out there. Whether you're looking for larger, fuller screens, power
-packed batteries, blazing-fast processors, beautification apps, high-tech selfie
cameras or just large internal space, we take care of all the essentials. Shop from
top brands in the country like Samsung, Apple, Oppo, Xiaomi, Realme, Vivo, and
Honor to name a few. Rest assured, you're buying from only the most reliable
names in the market. What's more, with Flipkart's Complete Mobile Protection
Plan, you will never again find the need to run around service centres. This plan
entails you to a number of post-purchase solutions, starting at as low as Rupees
99 only! Broken screens, liquid damage to phone, hardware and software glitches,
and replacements - the Flipkart Complete Mobile Protection covers a
comprehensive range of post-purchase problems, with door-to-door

services.

17
When it comes to laptops, we are not far behind. Filter among dozens of
super-fast operating systems, hard disk capacity, RAM, lifestyle, screen
size and many other criterias for personalized results in a flash. All you
students out there, confused about what laptop to get? Our Back To
College Store segregates laptops purpose wise (gaming, browsing and
research, project work, entertainment, design, multitasking) with
recommendations from top brands and industry experts, facilitating a
shopping experience that is quicker and simpler.

Photography lovers, you couldn't land at a better page than ours. Cutting- edge
DSLR cameras, ever reliable point-and-shoot cameras, millennial favourite instant
cameras or action cameras for adventure junkies: our range of cameras is as much
for beginners as it is for professionals. Canon, Nikon, GoPro, Sony, and Fujifilm
are some big names you'll find in our store. Photography lovers, you couldn't land
at a better page than ours. Cutting- edge DSLR cameras, ever reliable point-and-
shoot cameras, millennial favourite instant cameras or action cameras for
adventure junkies: our range of cameras is as much for beginners as it is for
professionals. Canon,
Nikon, GoPro, Sony, and Fujifilm are some big names you'll find in our store.

Turn your home into a theatre with a stunning surround sound system. Choose
from our elaborate range of Sony home theatres, JBL soundbars and Philips
tower speakers for an experience to remember.

How about jazzing up your phone with our quirky designer cases and covers?
Our wide-ranging mobile accessories starting from headphones,

18
power banks, memory cards, mobile chargers, to selfie sticks can prove to be
ideal travel companions for you and your phone; never again worry about
running out of charge or memory on your next vacation.

Large Appliances

Sleek TVs, power-saving refrigerators, rapid-cooling ACs, resourceful washing

machines - discover everything you need to run a house under one roof. Our
Dependable TV and Appliance Store ensures zero transit damage, with a
replacement guarantee if anything goes wrong; delivery and installation as per
your convenience and a double warranty (Official Brand Warranty along with an
extended Flipkart Warranty) - rest assured, value for money is what is promised
and delivered. Shop from market leaders in the

19
country like Samsung, LG, Whirlpool, Midea, Mi, Vu, Panasonic, Godrej, Sony,
Daikin, and Hitachi among many others.

Small Home Appliances

Find handy and practical home appliances designed to make your life

20
simpler: electric kettles, OTGs, microwave ovens, sandwich makers, hand
blenders, coffee makers, and many more other time-saving appliances that are
truly crafted for a quicker lifestyle. Live life king size with these appliances at
home.

21
22
Life Style
Flipkart, 'India ka Fashion Capital', is your one-stop fashion destination for
anything and everything you need to look good. Our exhaustive range of
Western and Indian wear, summer and winter clothing, formal and casual
footwear, bridal and artificial jewellery, long-lasting make-up, grooming tools
and accessories are sure to sweep you off your feet. Shop from crowd favourites
like Vero Moda, Forever 21, Only, Arrow, Woodland, Nike, Puma, Revlon,
Mac, and Sephora among dozens of other top-of-the-ladder

names. From summer staple maxi dresses, no-nonsense cigarette pants, traditional
Bandhanikurtis to street-smart biker jackets, you can rely on us for a wardrobe
that is up to date. Explore our in-house brands like Metronaut, Anmi, and
Denizen, to name a few, for carefully curated designs that are the talk of the town.
Get ready to be spoiled for choice.Festivals, office get-togethers, weddings,

23
brunches, or nightwear - Flipkart will have your back each time.

24
Home and Funiture

Moving to a new place is never easy, especially if you're buying new furniture.
Beds, sofa sets, dining tables, wardrobes, and TV units - it's not easy to set up
everything again. With the hundreds of options thrown at you, the ride could be
overwhelming. What place is reliable, what furniture will stand the test of time?
These are questions you must ask before you choose a store. Well, our Durability
Certified Furniture Store has not only curated a range of furniture keeping in mind
the modern Indian consumer but furniture that comes with a lab certification,
ensuring they last you for up to 10 years. Yes, all our furniture has gone through
35 stability and load tests so that you receive only the best-quality furniture. Be
Furniture, always.

25
Names to look out for are Nilkamal, Godrej Interior, Urban Ladder, Hometown,
Durian and Perfect Homes.

You may have your furniture all set up, but they could end up looking flat and
incomplete without complementary decor. Curtains, cushion covers, bed sheets,
wall shelves, paintings, floor lamps - find everything that turns a house to an
inviting home under one roof at Flipkart.

Baby and Kids

Your kids deserve only the best. From bodysuits, booties, diapers to strollers, if
you're an expecting mother or a new mother, you will find everything you need to
set sail on a smooth parenting journey with the help

26
of our baby care collection. When it comes to safety, hygiene and comfort,
you can rely on us without a second thought. Huggies, Pampers, MamyPoko,
and Johnson & Johnson: we host only the most-trusted names in the business
for your baby.

Books, Sports and Games

Work hard and no play? We don't believe in that. Get access to best-selling fiction
and non-fiction books by your favourite authors, thrilling English and Indian
blockbusters, most-wanted gaming consoles, and a tempting range of fitness and
sports gadgets and equipment bound to inspire you to get moving.

27
Grocery/Super mart

Launching into the grocery vertical, Flipkart introduces Supermart that is out to
bring everyday essentials close to you. From pulses, spices, dairy, personal and
sanitary care, breakfast essentials, health drinks, spreads, ready to cook,
grooming to cleaning agents, we are happy to present everything you need to run
a house. Now buy Grocery products for as low as 1 Rupee only - our 1 Rupee
Store presents new products every day for a nominal price of 1 Rupee only.
Terms and conditions apply.

28
No Cost EMI

In an attempt to make high-end products accessible to all, our No Cost EMI plan
enables you to shop with us under EMI, without shelling out any processing fee.
Applicable on select mobiles, laptops, large and small appliances, furniture,
electronics and watches, you can now shop without burning a hole in your pocket.
If you've been eyeing a product for a long time, chances are it may be up for a no
cost EMI. Take a look ASAP! Terms and conditions apply.

EMI on Debit Cards

Did you know debit card holders account for 79.38 crore in the country, while
there are only 3.14 crore credit card holders? After enabling EMI on Credit
Cards, in another attempt to make online shopping accessible to everyone,
Flipkart introduces EMI on Debit Cards, empowering you to shop confidently
with us without having to worry about pauses in monthly cash flow. At present,
we have partnered with Axis Bank, HDFC Bank, State Bank of India and ICICI
Bank for this facility. More power to all our shoppers!
Terms and conditions apply.

Mobile Exchange Offers

Get an instant discount on the phone that you have been eyeing on.

Exchange your old mobile for a new one after the Flipkart experts
calculate the value of your old phone, provided it is in a working condition
without damage to the screen. If a phone is applicable for an exchange offer,
you will see the 'Buy with Exchange' option on the product description of the
phone. So, be smart, always opt for an exchange wherever possible. Terms
and conditions apply.
29
Flipkart’s Success Mantra

 Great customer service: Flipkart users are more satisfied than that of
their competitors. Great customer service has been its hallmark.

 Easy to use website, hassle free payment system: The user interface is
sleek and easy to use.
 Cash on delivery/Card on delivery mode of payment: This has been a
major Instrument in Flipkart’s Success.

 Almost 60% of its sales happen through this mode. Cash on delivery
created trust in the minds of Indian customers who were always weary
of making payments online.

 Focused on user experience: Every other e-commerce site, tried to

cram the maximum of amount of information possible into every
single page whereas Flipkart focused on providing only the relevant
info

30
 CHAPTER- 2
COMPANYY PROFILE

31
History on flipkart services

Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal, who
were both alumni of the Indian Institute of Technology Delhi and formerly
worked for Amazon. The company initially focused on online book sales with
country-wide shipping. Following its launch, Flipkart slowly grew in
prominence; by 2008, it was receiving 100 orders per day. In 2010, Flipkart
acquired the Bangalore-based social book discovery service we Read from
Lulu.com.

In late 2011, Flipkart made several acquisitions relating to digital distribution,

including Mime360.com and the digital content library of Bollywood portal
Chakpak.

In February 2012, the company unveiled its DRM-free online music

store Flyte. However, the service was unsuccessful due to competition
from free streaming sites, and shut down in June 2013.

In May 2012, Flipkart acquired Letsbuy, an online electronics retailer. In

May 2014, Flipkart acquired Myntra, an online fashion retailer, for ₹20

32
billion (US$280 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. Flipkart subsequently held exclusive Indian
launches for other smartphones, including the Xiaomi Mi3in July 2014 (whose
initial release of 10,000 devices sold out in around 5 seconds), the Redmi 1S and
Redmi Note in late-2014 (which saw similarly accelerated
sellouts), and Micromax's Yu Yunique 2 in 2017.

On 6 October 2014, in honour of the company's anniversary and

the Diwali season, Flipkart held a major sale across the service that it
promoted as "Big Billion Day". The event generated a surge of traffic, selling
US$100 million worth of goods in 10 hours. The event received criticism via
social media over technical issues the site experienced during the event, as
well as stock shortages. 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

33
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.

In April 2015, Flipkart acquired Appiterate, a Delhi-based mobile

marketing automation firm. Flipkart stated that it would use its technology to
enhance its mobile services. In October 2015, Flipkart reprised its Big Billion
Day event, except as a multi-day event that would be exclusive to the Flipkart
app. Flipkart also stated that it had bolstered its supply chain and introduced
more fulfilment centres in order to meet customer demand.
Flipkart achieved a gross merchandise volume of US$300 million during the event,
with the largest volumes coming from fashion sales, and the largest value coming
from mobiles.

In December 2015, Flipkart purchased a minority stake in the digital mapping

provider Map my India. The company stated that it would licence its data to help
improve delivery logistics. In 2016, Flipkart acquired the online fashion retailer
Jabong.com from Rocket Internet for US$70 million, as well as the UPI mobile
payments start up PhonePe.In January 2017, Flipkart made a US$2 million
investment in Tinystep, a parenting information startup.

In April 2017, eBay announced that it would sell its Indian subsidiary eBay.in
to Flipkart and make a US$500 million cash investment in the company.
eBay promoted that the partnership would eventually allow Flipkart to access
eBay's network of international vendors, and vice versa, but these plans never
actually came to fruition. In July 2017, Flipkart made an offer to acquire its
main domestic competitor, Snapdeal, for around

34
 US$700–800 million. It was rejected by the company, which was seeking at least
US$1 billion.

Flipkart held a 51% share of all Indian smartphone shipments in 2017, overtaking
Amazon India (33%).Flipkart sold 1.3 million phones in 20 hours on 21
September alone for its Big Billion Days promotion, doubling the number sold on
the first day of the event in 2016 (where it sold a total of
million phones in five days.)

35
 CHAPTER- 3
RESEARCH METHODOLOGY

36
 REVIEW OF LITERATURE AND RESEARCH METHODOLOGY

INTRODUCTION:

The first section of this chapter discusses the literature review done for this
study followed by the research design of this study in detail in the second
section. A Literature review is a body of text that aims to review the critical
points of current knowledge including substantive findings as well as
theoretical and methodological contributions to a particular topic.
Literature reviews are secondary sources, and as such, do not report any new
or original experimental work. Also, a literature review can be interpreted as a
review of an abstract accomplishment. Methodology is the answer to the why
and how the research was carried outing the first place. This increases the
possibility of receiving appropriate answers to the research questions and
derives valuable insights into the topic at hand. The main focus of the
methodology here is driven by primary research, thus undertaking research
that is novel in nature. Alongside this it highlights the methods that would be
put to use to explore this study. The choice of research approach is the first
topic discussed in this chapter, followed by data collection, sample selection
and data analysis.

37
REVIEW OF LITERATURE:

Several researchers have carried out studies in their effort to examine consumers
‘online
buying behavior. For example, Bellman et al (1999) investigated various pre
dictors forwhether an individual will purchase online. These authors
concluded that demographic variables, such as income, education and age,
have a modest impact on the decision of whether to buy online, whereas the
most important determinant of online shopping was previous behavior, such as
earlier online purchases. This is consistent with Forrester Research which
proved that demographic factors do not have such a high influence on
technology as the consumers‘attitudes do (Modal, 2000). Stein field and
Whitten (1999) suggested that the combination of the Internet, plus physical
presence, provides more opportunities to
capture business than the online-
only presence, because they can provide better pre-purchase and post- sales
services to lower consumer transaction cost and build trust in online
stores.However, it is worth mentioning that beliefs and attitudes that are found in
the stage prior to the adoption of e- commerce are different to those in the ―
post- adoption‖ stage (Geffen etal,2003; Venkatesh and
Brown, 2001; Yu et al, 2005).

Concerning the factors that influence or hinder online shopping, Ernst and Young
(2000)reported that Internet users purchased online because of good product
selection, competitive prices, and ease of use, but were concerned about shipping
costs, lack of opportunity to prior examining the

38
products, as well as, the confidentiality of credit card and personal information.
Know and Lee (2003) explored consumers‘concerns about payment security and
its relationship to online shopping attitude and actual purchases. They observed
negative relationship between attitude towards online shopping and concerns
about
online payment security. Consumers with a positive attitude seem to be les s
concerned about payment security. Similarly, popular literature cited ease of
shopping comparison, low prices, timely delivery, convenience, time saving, low
shipping costs, improved customer service, tax exempt status and speedy e-mail
response, as key reasons for the increase in online shopping (Lorek, 2003; Magee,
2003; Malloy, 2003; Retail Merchandiser,
2003).

Bargain, hot deal, steals... every day consumers are bombarded with hundreds of
seemingly promising offers. However, not every value buy saves money; so me
can be costly mistakes.Here how to figure out the trap from the real deal.

It's a great way to save on interest, particularly if you aren't keen on paying
the high rate for revolving credit with your existing card. However, be
warned that such a teaser deal is typically temporary. If you don't pay the
outstanding amount within the offer period, you will be penalized with a
higher interest rate, possibly more than the one on your old credit card.

Straight cash discount instead of value-added promotion

The trouble with most value-added offers is that they come with caveats. It
could be for a limited period, or you may land discount vouchers/coupons that
don't appeal to you. What’s not to like about saving hard cash? The only
drawback is that you are unlikely to find such bargains at shopping malls. Hit
standalone, smaller shops instead.

39
A gadget bought at a discount of 80% on a little-known website

It really should not come as a surprise that you are being ripped off. Online
shopping promises discounts, but if just one player offers rebates far more
than its competitors, itshould be a red flag. For instance, the MRP on the HP
Pavilion G6-2232TX laptop is nearly Rs 41,000, while Flipkart is offering it at
Rs 38,342 and Laptop wale at Rs 38,100. So how can an unknown player offer
it at just Rs 8,200? Other warning signs are an absence of credible contact
information for the company. If the website is legitimate, chances are you are
being peddled a counterfeit item.

Registering on private sale websites

To begin with, registration is free, so even if you never get lucky, all you are
wasting is time. The likes of Jetsetter.com and Sniqueaway.com hold short
-term flash sales on unsold inventory at luxury hotels and cruises, where you
could land discounts of 40-70%.

Buying gold because the jeweller insists it's a good investment

Given the high making charges and issues with determining purity, make
sure that
youbuy jewellery solely for the love of bling. If investment is the agenda, yo
u would be better off buying gold bars/coins or gold funds. The jeweller who
promises you the moon will be quick to list out caveats while buying it back.

Renting a car at the airport at a 10% discount

It may be the handiest option for travelers, but the airport is also the most
expensive place to rent a car, especially at foreign destinations. Typically,
you will shell out 12-15% more than the rental charges at any off-site
location, including at or near your hotel. Try to wrangle a complimentary
airport pick-up service from the hotel you've booked and then check with

40
the concierge for rental rates, or book a car online.

Accessories, perfumes and cosmetics from duty-free shops

These items, including designer watches and sunglasses, can be had much
cheaper online. For instance, perfumes costing $53-55 (around Rs 3,000) at duty-
free shops can be bought for around $50 (Rs 2,750) on Amazon.com, including
shipping charges. Often, mall/high street sales too offer a better deal. However,
duty-free shopping continues to be attractive when it comes to alcohol and
cigarettes.

A N A L Y S I S O F C O N S U M E R B E H A V I O U RO N L I N E

Author: Dejan Petrovic

Published: 2007
The report outlines about the most relevant behavioral characteristics of
online consumers and examine the ways they find, compare and evaluate
product information. Comparison of the newly collected survey data with the
existing consumer behavior theory resulted in detection of a number of issues
related to a specific consumer group. The purpose of this report is to translate
these findings into a set of implementation activities on strategic and
technological level. Execution of these recommendations will result in better
conversion of visitors into customers and encourage customer loyalty and
referrals.

The focus group of this study will be young adults aged between eighteen and
thirty-four interested in buying a mobile phone or a related product.

Research by Shun & Yunjie (2006) showed that there are product types, which
are more likely to be sold online such as software, books, electronics and
music. Reason for this is that when purchasing these types of products, one
does not require personal inspection and most, if not all features, can be
outlined in the product description and images. Most products in the mobile
phone family belong to this category.

41
According to the recent research on consumer behavior on the Internet users
(Cotte,Chowdhury, Ratenshwar & Ricci, 2006), there are four distinct consumer
groups with different intentions and motivations:

• Exploration

• Entertainment

• Shopping

• Information

Majority of young adults interviewed for purpose of this research tend to be

active information seekers. A high level of technological confidence within
this group tends to be an encouraging factor when it comes to product
information research online.

The following analysis presents both, focus group results and behavioral theory
in a parallel fashion divided into two main research topics:

• Information Retrieval and Search Patterns

• Perception of Product Information Online

These two areas are mutually dependent and particularly important in a market
where consumers have the power to choose the right product from a number of
competing suppliers. Well-structured product information that cannot be found
easily online is as much of a
problem as is having easily accessible information that does not meet the
consumer‘s expectations.

Petrovic Dejan (2006) in his study on Analysis of consumer behavior online

explained that the most relevant behavioral characteristics of online
consumers and examine the ways they find, compare and evaluate product
information. Comparison of the newly collected survey data with the existing
consumer behavior theory resulted in detection of a number of

42
issues related to a specific consumer group. The purpose of this report is to
translate these findings into a set of implementation activities on strategic and
technological level. Execution of these recommendations will result in better
conversion of visitors into customers and encourage customer loyalty and
referrals. The focus group of this study will be young adults aged between
eighteen and thirty-four interested in buying a mobile phone or a related
product.

Shun &Yunjie (2006) in their study showed that there are product types,
which are more likely to be sold online such as software, books, electronics
and music. Reason for this is that when purchasing these types of products, one
does not require personal inspection and most, if not all features, can be
outlined in the product description and images. Most products in the mobile
phone family belong to this category. According to the recent research on
consumer behavior on the Internet users (Cotte, Chowdhury, Ratenshwar&
Ricci, 2006), there are four distinct consumer groups with different intentions
and motivations:

Exploration
Entertainment
Shopping
Information
Music Videos, Lyrics

Daily updated collection of music videos and lyrics. Majority of young

adults interviewed for purpose of this research tend to be active
information seekers. A high level of technological confidence within this
group tends to be an encouraging factor when it comes to product
information research online. The following analysis presents both, focus
group results and behavioral theory in a parallel fashion divided into two

43
main research topics: Information Retrieval and Search Patterns Perception of
Product Information Online These two areas is mutually dependent and
particularly important in a market where consumers have the power to choose
the right product from a number of competing suppliers. Well- structured
product information that cannot be found easily online is as much of a
problem as is having easily accessible information that does not meet the
consumer's expectations.

Anders Hasslinger; Selma Hodzic; Claudio Opazo (2008-02-01) in their study

they showed that developed into a new distribution channel and online
transactions are rapidly increasing. This has created a need to understand how the
consumer perceives online purchases.
The purpose of this dissertation was to examine if there are any particular f actors
that influencethe online consumer. Primary data was collected through a survey
that was conducted on students at the University of Kristiansand. Price, Trust and
Convenience were identified as important factors. Price was considered to be the
most important factor for a majority of the students. Furthermore, three segments
were identified, High Spenders, Price Easers and Bargain Seekers. Through these
segments we found a variation of the different factors importance and established
implications for online book stores.

STATEMENT OF THE PROBLEM

Analysis of Customer Perception towards online shopping on Flipkart.com.

Basically it is important to investigate the motivation behind consumer
purchase but it is equally important to find us how the consumers form
perception and behavior’s towards online buying because consumer
perception towards purchasing online is a conspicuous factor affecting actual
buying behavior. One of the researches is to work on factors that influence
customers to buy online from Flipkart.com, and have decided to study four
factors such as convenience, time saving, Website features, and security. And
along with this the study for out of stock on highly discounted

44
items also will be done.

However, customer‘s willingness to purchase online could be affected by one‘s

individual needs and these needs can be ‗Need for cognition‘. Taking these
aspects into account, a survey is conducted to know the perception towards online
shopping on Flipkart.com.

SCOPE OF THE STUDY

Scope of study is a general outline of what the study (e.g. class or seminar)
will cover."Scope" defines the parameters of this can be an object, or a theory
process, activity, describing either future, current or past knowledge or
statements of descriptive activity, experience etc. The topic chosen for this
particular study is to analyze the
customer perception towards online shopping on Flipkart.com. The sample
size chosen was according to the convenience and the objectives of the study.
To know about various aspects of Flipkartin market, the improvements
needed in case of features and process, and the effect of factors on the buying
behavior of online customers. The geographical area that this study covers is
Bangalore (India).

OBJECTIVE OF STUDY

1. To find the factors that leads a website user to return to or

recommend the websiteFlipkart.com

2. To discover the key factors that influence online buying behavior of

consumers in India.

3. To identify who are the online shoppers in terms of demography.

45
 4. To understand the customer awareness on Flipkart.com

5. To determine the factors responsible for customer satisfaction

OPERATIONAL DEFINITION OF THE CONCEPT

Customer perception is defined as the way that customers usually view or feel
about certain services and products. It can also be related to customer
satisfaction which is the expectation of the customer towards the products.

When a customer purchases a service, the attitude of the customer is the

function of Value, Quality and the satisfaction level of the customer. The
value of the service is determined as the price or time he is going to spend for
a particular service. Customer testifies the quality of a service, either by his
own past experience or by the communication of the service provider.
After the consumption of the service the customer measures the
satisfaction level he gets from consuming the service.

Thus the customer perception regarding a service is framed by:-

1. The value of the service.

2. The quality of the service.

3. The satisfaction level from the service.

Since the optimum level of the Value, Quality, Satisfaction from a service is
always acceptable to the customer.

METHODOLOGY

Research Design

“Research means different things to different people” and the intention behind it
are to investigate innumerable data, theories, experiences, concepts and law. “The
procedural framework within which the research is

46
conducted” is the definition of research methodology. The two broad and
distinct approaches to social research cover the Quantitative and Qualitative
methods of enquiry.

The quantitative paradigm on the other hand intends to gain a deeper

understanding, knowledge and insight into a particular situation or phenomenon,
by providing answers to questions of ‘how?’ rather than ‘what?’. Unlike
qualitative research which occurs in natural settings, quantitative research is
where hypotheses are established.

Data collection

The data required for understanding will be collected from various online
customers. In order to conduct the study digital survey was conducted through
facebook and e-mail. And those responses are collected in a spreadsheet and
further analysis was done.

The data collection method in this particular research comprises of two

forms: namely primary and secondary data. One needs to be careful while
using secondary data as maybe the collected data may be biased as the
collector of that original data might have highlighted only a partial picture
or another aspect may be that data may be quite old and also the data quality
could be unknown.

Primary data

“Data collected specifically for the research project undertaken”‖ is the

definition of primary

Research as provided by Saunders et.al (2003: pp. 486).

Primary data is generally originated by any researcher to address any specific

problem or issue at hand, where the only drawback is that it can be expensive and
time-consuming. The various ways of gathering primary data is through surveys,
focus group and observations.

In this study, the primary data is collected through well-formed

47
questionnaire with the help of a digital survey. The questionnaire consists of
quantitative and qualitative multiple choice questions and the respondents are
asked to choose the one choice which suits them the best amongst the multiple
choices.

Secondary Data

Prerequisite to the collection of primary data is a careful scrutiny of the existing

secondary data (Malhotra, 2005). The Data that is collected from existing journals,
reports and statistics from private and public institutions are called Secondary
data. For this specific study the collection of secondary data was done primarily
from marketing journals already available on this topic. Secondary data helps the
author to comprehend the perception of Indian consumers on online shopping.

Thus the study carried out has analyzed the primary data with the rationale
and validation of the present secondary data.

Sample technique

Choosing a study sample is an important step in any research project since it is

rarely efficient, practical, or ethical to study whole populations. In this study the
sampling strategy used is convenient sampling. The sample size is 100. A small
part of something intended as representative of the whole, or a subset of a
population. In this research simple random sampling is being used.

Data collection

The data collection would be:

PRIMARY DATA : Questionnaire

SECONDARY DATA : Journals, Internet, newspaper etc.

Sample Design

48
Online customers of Bangalore city are included under this research and
tell their satisfaction level.

Data source

Both Primary and Secondary source of data would be used .The major type of
information is used from primary data.

Research plan

49
 Research Objectives

 To determine and measure the satisfaction level in the services

provided by Flipkart among the customers.

 To measure the availability of several stuffs at the web portal of

Flipkart.

 To aware the customers about the services and offers provided by

Flipkart with the special reference to Flipkart.

 To improve the availability of several stuffs at the web portal and

influence the customers to access Flipkart for shopping.

50
 CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION

51
DATA ANALYSIS AND INTERPRETATION

1. On The Basis Of Gender

1. INTERPETATION: Among all 100 respondents, there were 47.00%

males and 53.00% females.

52
2. Does The Respondent Access Any Website For Online Shopping?

INTERPETATION: Among all 100 respondents, there were 100.00%

respondents accessing Flipkart for online shopping.

53
3. How The Respondents Did Came To Know About Flipkart?

INTERPETATION: Among all 100 respondents there were 12.00%

knew threw Internet Ads, 20.00% respondents knew threw TV Ads,
26.00% knew threw hoardings and 42.00% respondents knew threw
News Paper Ads.

54
 4- On The Basis Which Website Does The Respondent
Access?

INTERPETATION: Among all 100 respondents, there were 100.00%

respondents accessing Flipkart for online shopping.

55
 5- Did the respondent get any offer from Flipkart?

INTERPETATION: Among all 100 respondents there were 35.00%

respondents got some offer from pure it and 65.00% respondents did not get
any offer from Purer it.

56
 6 What are the views of respondents towards the service of Flipkart?

INTERPETATION: Among all 100 respondents there were 74.00%

respondents said that “GOOD” and 26.00% respondents said “BAD”.

57
7- What are the views of respondents towards offers provided by
Flipkart?

58
INTERPETATION: Among all 100 respondents there were 79.00%
respondents said that they are Satisfied and 21.00% respondents said that they are
not Satisfied in the respect of test, order and clarity of water which they get from
Pureit water purifier.

59
 8- Are the respondents satisfied with the behaviour of delivery boys?

INTERPETATION: Among all 100 respondents there were 78.00%

respondents said that they were “Satisfied” and 22.00% respondents were “Not
Satisfied” in the respect of the behaviour of delivery boys

60
9- Are you satisfied with the after sales service of Flipkart?

61
INTERPETATION: Among all 100 respondents there were 44.00%
respondents said that they were “Satisfied” and 56.00% respondents were
“Not Satisfied” in the respect of price strategy of Flipkart.

62
10- Are you satisfied with the pricing Strategy of Flipkart?

63
11-Are you satisfied with the pricing Strategy of Flipkart?

INTERPETATION: Among all 100 respondents there were 44.00%

respondents said that they were “Satisfied” and 56.00% respondents were
“Not Satisfied” in the respect of price strategy of Flipkart

64
SWOT ANALYSIS OF FLIPKART

STRENGTH

 Strong Brand Value.

 Own Logistic arm.

 Own online payment gateway solution.

 Own market place model.

 Inventory management.

 Customer Service.

 Supplier network/relation.

WEAKNESS

 Investors driven Organization or lack of Independent board.

 Secretive and Political culture.

 Excessive focus on expanding customer base rather than pulling

profits.

 Global reach.

65
OPPORTUNITY

 Online fashion and apparel business.

 Opportunity is always there because of a strong brand name.

 Providing logistics services to its competitors.

 Growth in online retail sector in India.

 Enter new untapped global markets.

THREAT

 From competitors like Amazon, Snapdeal, Infibeam, India plaza,

Homeshop18 etc.

 Less usage/preference of online buying.

 Low Internet penetration.

66
CHAPTER- 5

67
LIMITATIONS OF THE STUDY

No research is complete without admitting the limitations that was faced

while conducting a study which will contribute to present learning. This

study too like the others has certain constrains which has been discussed

below.

2. The study was restricted to Bangalore city only.

3. The study is mainly concentrated on Flipkart.com.

4. The sample of the size will be limited to time and resources.

5. The information will be collected valid until there is no any technical

change or any innovation.

6. The result is assuming that respondents have given accurate

information.

68
FINDINGS OF THE STUDY

 Most of the respondent were not satisfied with the after sales
services of Flipkart.
 74% consumers were satisfied with the service and 24% were not
satisfied with the service of Flipkart.
 33% consumers believed that all several stuffs always available at
Flipkart’s web portal 19% were not belived and 48% could not say
anything about the same.
 78% of the respondents were satisfied with the behaviour of delivery boys
22% were not about the same.
 20% consumers came to know about Flipkart from TV ads, 42% from
Newspaper Ads, 26% from hoardings, and 12% from Internet ads.
 Sales of premium products at Flipkart is not better.
 Some of the delivery boy does not wear the Flipkart T-Shirts which
does not give the feeling of belongingness and even do not wear their
identity card which shows the sign off.
 Most of the consumers think that prices of the products at Flipkart is
higher than the other shopping portals.
 79% respondents were satisfied with the offers provided by Flipkart
remains not satisfied about the same.

69
 Recommendations

1. More discounts compared to physical stores is a major pull for the

customers to shop from e-retailers, to maintain this heavy discounts in the
long term business will be the major challenge for e-retailers. Cost estimation
& future planning of pricing, promotional activities will be essential to cater
market demands.

2. Currently e-retailers offer very few or no Loyalty programs for e- consumers

which most of the solid stores provide. To maximize customer lifetime value for
long term run Loyalty Programs for existing high value e- consumers should be
launched.

3. Online shopping services are mostly available in metro cities or in the urban
areas for e-retailers to expand the customer base in smaller towns they need to
do tie ups with small entrepreneurs & local suppliers.

4. Mostly when a new product is launched online ‘Stock out’ situation arises,
which leads to unavailability of stocks, it demotivates e-consumer to wait a
long time to buy online. Stock out situation need to be properly monitored,
planned & estimation of demand should be calculated.

5. More of Brand & trust building exercises should be carried out in order to
position a positive image of online shopping in consumers mind.

6. Cash on delivery is a most preferred option, but cash spending is limited

and have restrictions. Consumers spend more with credit card compared to
cash. Still consumer’s doesn’t trust e-retailer because of history of credit card
frauds. Retailers need to find a solution to this problem to increase spending
in the future.

70
 7. Currently products are couriered directly without route planning which
results in cost to e-retailers. Google maps should be used for customer location
finding.

8. Multiple order delivery of single e-consumer is not delivered by single

person. It is delivered by different delivery boys. Multiple delivery planning
should be done in order to save cost of delivery & time.

9. Most of the corporate houses in India offer Festive shopping cards for their
employees as a part of corporate engagement. E-retailers need to launch such a
festive shopping cards, such as Diwali, New Year, Bonus, Loyalty, etc.

10. Based on past purchases & transaction history e-consumers should get
automatic Product recommendations which in turn will lead to increase in
online shopping.

11. On Big billion day’s sale, Great Indian Festive Offers or similar offers
stocks unavailability is a major concern. Product demand forecasting
should be done and activity need to be pre planned in order to avoid spot
stock out situation.

12. Consumers don’t get alerts & messages about new product,
product/category launch, e-consumers have to visit websites for
information. Consumers should get adverts, blinks, SMS or emails to be
informed.

13. Product comparisons: currently consumers can compare maximum 5

products only. Customized product comparisons should be launched
in order to make it easier for customers to purchase as per convenience.

71
14. Promotional activity through TV and newspaper is very expensive. E-
retailers need to plan, newer ways to promote the product which will result
to save the cost and pass on benefits to end consumers. The multilevel
promotional activities in one of them where e-consumers will get royalty
points for inviting new consumers though there referral codes.

15. The Indian customers give high importance of security and privacy
concerns. Perceived privacy of customer information can be improved by
ensuring that at no point of time the customer is asked for irrelevant
personal information.

16. An Indian e-consumer still has a habit of checking the product physically
before purchasing it, which creates a mental hurdle for him to shop online

72
CONCLUSION

Due to fast moving lifestyle, online shopping has been growing drastically in

India. With developed internet penetration, increasing adoption of devices like

smart phones, tablets, and laptops, and access to the Internet and the shift in

buying behavior among the consumers has contributed to the rapid growth of the

online consumer base. The increase of online shopping has become a trendy way

for consumers to shop over internet. The research indicates that shift in buying

behavior towards online is positive due to reasons like cash on delivery,

discounts, schemes & quality of products offered.

Increasing awareness towards use of internet, satisfactorily results in online

shopping, rise in standard of living, occupation, influence of friends and

attractive offers had affected purchase decision making. Youth contributes a

considerable proportion of the online users with India’s youth comprising a

significantly larger share than global internet users. ‘Y’ generations which

are youths between the age group of 18-35 years were mostly attracted

towards online shopping of electronic product through smart phones.

Flipkart as India’s leading e-retailer has revolutionized online shopping like

73
never before maintains top position on consumers mind followed by

Snapdeal & Amazon. Flipkart to retain top position it needs to offer better

schemes & offers with superior quality and service.

With nearly one-third of internet users already making purchases online, the e-

retail growth will rely more on increased spending from existing buyers than

first-time online buyers. When it comes to liking most about online shopping,

most of the e-consumers likes cheaper prices as their primary motivation for

shopping electronic products online and Cash on delivery is the most preferred

payment method.

E-consumers decision making mostly influenced by marketing influences like

the Price, Advertisements on TV, Newspapers & Magazines, Free samples,

Quality of product & Brand Image impacts most on consumers’ willingness

to buy online. Overall, most of consumers reported to have satisfied

experience with the quality and services offered to them by e- retailers.

Hence the study directs the e-retailers that they should focus on these

important aspects in order to attract the more customers towards online

shopping.

74
BIBILOGRAPHY

75
 BIBLIOGRAPHY

 Referred Books:
 Kothari. C.R (2004): Research Methodology Methods & Techniques‟, New Age International
Publishers, New Delhi, 2nd Edition.
 Principles of Marketing –Philip Kotler & Kevin keller edition 12
 Market Research – D.D. Sharma
 Research Methodology – C.R. Kothari
 Books & magazine on Marketing -Kamil Sh. Zigangirov.

 Web Sites:
o www.flipkart .com

o www.google.com

76