HILTON HOTELS: BRAND DIFFERENTITATION THROUGH CUSTOMER

RELATIONSHIP MANAGEMENT

SECTION-A

GROUP - 6

DEEPANSHU AGARWAL

AVIRAL SANKHYADHAR

PUNIT VERMA

NAMAN CHAHAL

ANTONY LAWRENCE PULIKOTTIL

RAGHAW KHETAN
SUMMARY:

In 2007, two ex Amazon employees, Sachin Bansal and Binny Bansal began selling books
online platform in India with an initial fund of $6000. Flipkart was registered in Singapore
die tp the fact that Indian foreign direct investment norms capped foreign investment in retail
companies. Although it started by selling books, by 2016m Flipkart has successfully
transitioned to selling 30 millions products across more than 70 categories. Flipkart faced
issues among online retailers as the firm needed to rearrange the its product return rates to
reduce its losses. Flipkart increased it’s commission fees policy by an average 5% which led
to an online protest against Flipkart. These sellers made their account inactive and removed
the product listing making the products unavailable resulting in showing “Out of Stock”
message to the buyers. Amazon India saw an opportunity and reduced it’s commission rates
for various product categories by 2-7% to attract dissatisfied Flipkart sellers. Flipkart
struggled to retain the market share once it had and experienced massive drop in its valuation
and did not register any profits since 2007. With an increasing number of high returns,
Flipkart had to reduce its losses without causing any dissatisfaction among its stakeholders
and customers.

Q1) How does a return policy affect customers buying choices?

Ans The increasing number of online sales globally, India as the fastest growing in the
world,. Indian customers felt mistrust about online transaction so flipkart launched COD
(Cash on Delivery) which was virtually risk free to the customers. Free and easy returns
resulted in new customer behaviour. An increase in “window shopping”