A COMPARATIVE STUDY OF CONSUMER BUYING

BEHAVIOUR TOWARDS E-COMMERCE SITES

(FLIPKART AND AMAZON)

Live Project on Recent Business Activities Report

Submitted in partial fulfillment of requirement if Master of Business

Administration (MBA), Doon Business School

Submitted to: Submitted by:

Dr. Shailja Khanduri Manoj Kumar Das
Doon Business School MBA (2019-2021)
Dehradun

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 ACKNOWLEDGEMENT

Project work is never the work of an individual. It is more a combination of

ideas, suggestions, and contribution and work involving many jobs. One of
the most important parts of writing a report is the opportunity to thank all
those who have contributed to it. The list of expression of thanks, no matter
how extensive, is always incomplete and inadequate. This acknowledgement
is no exception.

I want to express my sincere gratitude towards Dr. Shailja Khanduri who

provided me with her expert guidance and invaluable suggestion.

I would like to thank my classmates and all those who directly or indirectly
helped me in one or the other way in the successful completion of the project.

2
 DECLARATION

I Manoj Kumar Das, student of Doon Business School (2019-2021)

declare that every part of the Project Report Study on Consumer buying
behaviour towards Ecommerce sites (Flipkart vs Amazon) submitted
by me is original.
I was in regular contact with my faculty guide for discussing the project.

Manoj Kumar Das

MBA (2019-2021)
ERP: 0191MBA025

CERTIFICATE

3
I have the pleasure in certifying that Mr. Manoj Kumar Das is a bonafide
student of IInd Semester of the Master’s Degree in Business Administration
Batch 2019-21, of Doon Business School, Dehradun under Uttarakhand
Technical University, ERP ID 0191MBA025

He has completed his project work entitled Consumer buying behaviour

towards Ecommerce sites (Flipkart vs Amazon) under my guidance.

I certify that this is his/her original effort & has not been copied from any
other source. This project has also not been submitted in any other Institute /
University for the purpose of award of any Degree.

This project fulfils the requirement of the curriculum prescribed by this

Institute for the said course. I recommend this project work for evaluation &
consideration for the award of Degree to the student.

Signature :
Name : Dr. Shailja Khanduri
Designation:
Date :
EXECUTIVE SUMMARY

Objectives

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  To understand and estimate the consumer perception and factors
affecting their behavior for choosing e-commerce sites.

 To understand tactics and methods that are used by e-commerce players

to grab the customers in India.

 To know how consumers are evaluating e-commerce sites for their

purchases.

 To study complexities and barriers those are there in between e-

commerce sites and customers.

Significance of the Study

Business war is a very significant concept which is very distinctively seen in
the e-commerce industry these days. The e-tailing websites try to outrun their
competitors by adopting newer strategies every time and thereby gain better
goodwill in the market which will ultimately increase their web traffic.

This study is an insight into the competitive scenario of the e-commerce

industry of India. It aims to check the rivalry between the two giants that
operate in India viz. Amazon India and Flipkart and check the customer
perception towards the warfare scenario of the giants.

Problem Definition
In India e-commerce evaluated like a giant with huge opportunity and success
rate. There are so many big and small players in market. Are they really
going to sustain in market for a long time and is there success rate for them.
What are customers expecting from them and are they ready to fulfill their
requirements. The study is to understand both parties’ requirements and
procedures.

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.
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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.

Limitations
 There was so much confidential data of companies that are not
exposed.

 Analysis was done based upon personal opinion of respondents

individually, not from any focus groups or experts.

 Only two online players Amazon and Flipkart have been covered for
the purpose of the study.

CONTENTS
CHAPTER NO TOPICS PAGE NO

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1 Introduction to the Industry 9-26
 Introduction
 Company profile: Flipkart
 Flipkart: Marketing strategies
 Flipkart :BCG matrix
 Company profile: Amazon
 Amazon: Marketing strategies
 Amazon: BCG matrix
 Financial Analysis: Flipkart vs
Amazon
 Flipkart vs Amazon: The Race
to Dominate Indian
Ecommerce
2 Scope of Study 27-33
 Scope of the study
 Background of the study
 Marketing mix of ecommerce
3 Research Methodology 34-36
 Research objective
 Data collection method
 Sample design
4 Data Analysis 37-53

5 Findings 54-55

6 Suggestions and Conclusions 56-57

 Suggestions
 Conclusion

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 CHAPTER 1
INTRODUCTION TO THE INDUSTRY

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INTRODUCTION TO THE INDUSTRY

“Consumer is the sole end and purpose of all production; and the interest of
the producer ought to be attended to only so far as it may be necessary for
promoting that of the consumer."
- Adam Smith

The growing interdependence of the world economy and international

character of many business practices have contributed to the development of
universal emphasis on consumer. Modern technological developments have
no doubt made a great impact on the quality, availability and safety of goods
and services. A consumer person who purchases or ultimately consumes
goods and services. Growing practice of electronic transactions includes both
e-commerce and e-consumers.

Internet is changing the way consumers shop and buys goods and services,
and has rapidly evolved into a global phenomenon. Many companies have
started using the Internet with the aim of cutting marketing costs, thereby
reducing the price of their products and services in order to stay ahead in
highly competitive markets. Even Government institutions have started
replacing their paper work. Companies also use the Internet to convey,
communicate and disseminate information, to sell the product, to take
feedback and also to conduct satisfaction surveys with customers.

Customers use the Internet not only to buy the product online, but also to
compare prices, product features and after sale service facilities they will
receive if they purchase the product from a particular store. Many experts are
optimistic about the prospect of online business.

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Online shopping is definitely a great way to shop with everything available
on the websites from clothes, gift items, food, home needs, medicines, and
many more, this mode of shopping allows one to shop conveniently without
hassle on spending hours in a supermarket or shopping areas. The Internet
with its wide array of information nooks, allows the customer to go through
various reviews of the product or service before actually heading for
purchases. These online shopping websites also have daily deals for the
customer looking for discounts and store offerings.

Profits and growth can be sustained only by adopting ethical methods of

doing business. Most of the products or services which consumers buy or pay
for, are durables and services. Rather than earning short term profit, the focus
should be more on achieving long term goals.

Consumer behaviour is said to be an applied discipline as some decisions are

significantly affected by their behaviour or expected actions. The online
purchasing behaviour of online shoppers and factor influencing online
shopping behaviour and its future perspective. Customers use the Internet not
only to buy the product online, but also to compare prices, product features
and after sale service facilities the will receive if they purchase the product
from a particular store. Many experts are optimistic about the prospect of
online business.

A consumer before buying any product online, he will check the authenticity
of the online shopping website as how much the site is trustworthy and
reliable as in online shopping the consumer or buyer is not able to see the
seller and cannot check the product until it has been delivered to him.

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GIANT PLAYERS IN INDIAN ONLINE SHOPPING

Flipkart Private Limited is an Indian e-commerce company established in

2007. It started with a primary focus on online book sales and soon, expanded
to lifestyle products, electronics, home essentials and groceries. Today,
Flipkart is the biggest online Indian marketplace competing with the world
leader Amazon.
Since 2010, the company has made a number of acquisitions including
Letsbuy, Myntra, Jabong, eBay India, etc. In addition to its main office in
Bengaluru, Flipkart has branch offices at Delhi and Mumbai. Apart from
India, the firm is registered in Singapore. In 2018, the US-based retail chain
Walmart acquired majority stake in Flipkart.
Recently, Flipkart has opened its R&D centre at Israel. This is in line with its
latest acquisition of Israeli start-up Upstream Commerce. The centre is run by
talented engineers from across the world.

 Company: Flipkart.com (a subsidiary of Walmart)

  Founder: Sachin Bansal, Binny Bansal 

 Year founded: 2007 

 Headquarter: Bengaluru, India

  CEO (Jan 2017 – Present):Kalyan Krishnamurthy

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   Number of Employees (2019): 30,000 

 Public or Private: Private 

 Industry Sector: E-commerce 

 Valuation (2019): $22 Billion 

 Annual Revenue (March 2019): $ 6.1 billion (Rs. 43,615

crore)  

 Products & Services: consumer electronics, ebooks, fashion,

lifestyle products

  Competitors: Amazon, Snapdeal, Alibaba, Paytm

MARKETING STRATEGIES

Flipkart uses psychographic and behavioural concerns to create strategies and

to fulfill the customers’ wants and needs. With a change in the pattern of
shopping and rise in per capita income, the customers are getting comfortable
purchasing online and are also becoming familiar with online shopping.

Multinational and national e-commerce companies are giving competition to

each other for getting a good position. Flipkart has proved itself customer
friendly and a trustworthy E-commerce brand. It attained a paramount
position in the small appliances and mobile segment, and also tackled some
major problems related to online payment and product supplying chain
system. 

They introduced the card payment system on delivery, and cash on delivery
to sort the problem of online payment, and launched their own supply chain
management system to deliver orders on time

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Flipkart Campaign

 The successful campaigns of Flipkart are “Fair-Tale”, “Shop Anytime,

Anywhere”, “No Kidding No Worries”, “Shopping Ka Naya Address”,
and “Big billion day” that created a history in the sector of online
shopping.

 The medium that helps in campaigns are TV commercials, different

social sites like Facebook, Twitter and Instagram; and mobile app
which are making Flipkart a household name in the market.

 Flipkart offers the best way to look your best, which brings different
fashion shoppers in an interesting manner. On December 26, a
campaign went live that includes video series of Rohan Joshi (stand-up
comedian) speaks about how men specific looks, dress and style
themselves.

 The brand ambassadors are Ranbir Kapoor and Alia Bhatt that serve the
voice of this company, also promote the brand and its services
successfully. 

BCG MATRIX:

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 Star: Question Marks:

 Marketing Segment  Local food units

 Gadget Section

Cash Cows: Dogs:

 Books  Plastic bags

 International food unit  Artificial flavored unit

Flipkart’s marketing segment (counting Myntra) and in addition its gadgets

section is a Star in the BCG grid. The reason is that the fragment is
developing and more and more clients are getting acclimated with web
purchasing of garments and gadgets things in India.

The Flipkart Cash cows are the books from which it started the career.
Flipkart is assessed to have a one-fifth share of the online retail showcase in
India – how can it plan to hold that share? One is grow coordination, a center
quality where huge ventures and innovation helped Flipkart turn into the best
quality level in conveyance in India. Flipkart ships books to the majority of
India’s 21,000 PIN codes and covers over a hundred urban communities for
its arrangement of books.

The international food unit is a Cash cow in the BCG matrix for Flipkart.
This business unit has a high market share of 30% within its category, but
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people are now inclined less towards international food. This change in
trends has led to a decline in the growth rate of the market. The
recommended strategy for Flipkart is to invest enough to keep this strategic
business unit under operations. If it no longer remains profitable and turns
into a dog, then Flipkart should divest this strategic business unit.

The local foods strategic unit is a Question mark in the BCG matrix for
Flipkart. The recent trends within the market show that consumers are
focusing more towards local foods. Therefore, this market is showing a high
market growth rate. However, it has a low market share in this segment. The
recommended strategy for Flipkart is to invest in research and development
to come up with innovative features. This product development strategy will
ensure that this strategic business unit turns into a cash cow and brings profits
for the company in the future.

The plastic bags strategic business unit is a Dog in the BCG matrix of
Flipkart. This strategic business unit has been in the loss for the last 5 years.
It also operates in a market that is declining due to greater environmental
concerns. The recommended strategy for Flipkart is to divest this strategic
business unit and minimize its losses.

The artificially flavored products strategic business unit is a Dog in the BCG
matrix for Flipkart. These products were launched with the prediction that
this segment would grow. However, with increasing health consciousness,
people are now refraining from consumption of artificial flavors. The market
is shrinking, and Flipkart has no significant market share. The recommended
strategy for Flipkart is to call back this product.

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About the Company: Amazon, is an American e-commerce and cloud
computing company, founded by Jeff Bezos in 1994 headquartered in Seattle,
Washington. It is the largest Internet based retailer in the world by total sales
and market capitalization. In 2015, Amazon surpassed Walmart as the most
valuable retailer in the United States by market capitalization. Their three
different operating segments include North America, International, and Web
Services. Amazon has three business models, its retail operations are spread
across Amazon Retail where the company procures inventory which is stored
in its distribution centers, Amazon Marketplace where third party sellers list
and sell their products on Amazon website for a fee, and Amazon Web
Services which offer cloud computing services.

Amazon’s Mission and Vision is "to be the earth’s most customer centric
company and an online platform where people can literally buy anything and
everything they need and endeavor to offer its customers the lowest possible
prices." Amazon’s clear focus towards its vision of being consumer centric is
a key success factor amidst various other critical success factors. Amazon's
unique selling proposition or USP lies in offering a huge spectrum of diverse
products under one roof and in being the world's largest online retailer. As of
2019, it employs over 840,000 people globally.

 Company: Amazon.com

  Founder: Jeff Bezos 

 Year founded: 1994 

 Headquarter: Seattle, US

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   CEO: Jeff Bezos

  Number of Employees (2019): 840,000 

 Public or Private: Private 

 Industry Sector: Cloud computing, e-commerce, artificial intelligence,

consumer electronics, digital distribution, grocery stores

 Valuation (2019): $1.021 trillion 

 Annual Revenue (March 2019): $280.522 billion 

 Products & Services: Amazon Echo, Amazon Fire TV, Amazon

Kindle, Amazon.com, Amazon Alexa, Amazon Appstore, Amazon
Music, Amazon Prime, Amazon Prime Video, Amazon Web Services

  Competitors: Alibaba, Walmart, Flipkart, Netflix, Google, Ebay

MARKETING STRATEGIES

Ecommerce giants like Amazon uses demographic & psychographic

segmentation to segment the markets. Amazon’s segmentation is based on
actual purchase behaviour: not what people might have expressed interest in,
but what they actually did. Amazon’s micro-level segmentation targets each
customer individually, allowing the company to convert visitors into long-
term, high-value customers.

Ecommerce segmentation often involves creating personas who will buy in a

certain way & certain products. Similarly Amazon targets the middle class &
upper class people who have got hands on experience in the basic
technology but don’t have time or prefer convenience over shopping from the
physical outlets.

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Amazon has successfully positioned itself as a Glocal (Go global Act local)
ecommerce giant where one can buy anything & get it delivered at any
remote locations. Using the catchphrase #AurDikhao in its most recent
campaign in India, it has further helped them carve a distinct space in the
consumer’s mind.

Amazon has also achieved economies of scale through extensive

product offerings which include electronics, toys and games, apparels, DIY
and many more. These offerings help Amazon to keep its prices low thereon
passing on the benefits to the consumers. Amazon’s robust customer centric
approach to analyze the customer buying behaviour based upon preferences
has helped them to have competitive edge over their competitors. More than
50% of the consumers are the repeat buyers at Amazon.com. Further more
Amazon is one of the longest players to be present in the online sector and
has a solid hold in European countries and US. This bottom line is helping
the company to expand in new markets.

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BCG Matrix:

Stars: Question Marks:

 Alexa  Amazon Go
 Amazon Prime

Cash cows: Dogs:

 Amazon Web  Amazon Fire

Services(AWS)
 Retails

Global tech giants are investing huge amounts of money into artificial

intelligence. Their first war with AI came when Google, Apple, and Amazon
produced their smart speakers. Here comes Alexa as the Star in BCG Matrix
of Amazon. More than 100 million Alexa devices have been sold, and that’s more
than what Apple Speakers and Google Speaker have managed. What Amazon
has that other tech-giants don’t have, is the global marketplace. Linking the
two business units enabled Amazon to integrate Alexa into normal people’s lives.
You can just ask her what to buy and when to deliver by just asking simple
questions.
 As the ratio of people who use voice as a means of searching increased
steadily over the years, it’s clear that Amazon is trying to drive commerce
through Alexa.

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Amazon’s prime is one of the major pillars on Amazon contributing
$3.4billion in subscription services revenues in the second quarter of 2018
(Griswold 2018). The total number of subscribers is forecast to increase to
164 million by 2020 and the average annual prescription from $97 to $110,
this could add at least $18 billion to Amazon’s revenue (Forbes 2018).

Amazon’s web service (AWS) is the retailer’s Cash cow contributing

majority of Amazon’s income. In the fourth quarter of 2014, AWS
contributed at least 5% of the Amazon’s revenue, 8.5% in the same quarter of
2017 and 10% across the whole of 2017. Amazon’s Web Service had 62%
market share in the fourth quarter of 2017 down from 68% a year earlier. 
The business’s sales grew by 45% in the fourth quarter of 2017 to $5.11
billion and $17.6billion for the entire year of 2017, exceeding analyst
expectations by $4.97billion.

Amazon’s online store is what Jeff Bezos likes to call “the Everything store”
where you can buy anything you want. Last year the revenue for the
ecommerce marketplace alone was 136 billion dollars, with double digit
growth every year. This statistics is about to grow with upcoming days as
they expand their delivery services to Japan, china and India. However, in
terms of profit the global retail unit isn’t doing well. In fact, we might as well
call the marketplace a Cash cow, considering the fact that the company is
losing billions of dollars each year.

Amazon is now expanding their business into offline markets through

Amazon Go. The Whole Foods Market was established to deliver the most
fresh and ripe vegetables and other eateries to consumers. Previously they
failed to deliver the food through online, since consumers liked to feel the
food, and doubted the quality of the food considering the long delivery time.
The problem with this business unit though is not about the price, but the
consumer habits. It is known that consumers like to shop offline where they
usually shop, because every other store sell the same products from the same
brands. It’s true that Amazon is implementing automatic purchase tech
through Amazon Go stores, but it’s still a blurry competition whether
the company will be able to dominate the offline market as well.

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There is are few businesses that Amazon have failed to succeed in with the
exception of some notable failures in the past including Amazon Fire, the
smartphone launched in 2014. Beset with deficiencies including poor design,
inadequate distribution and pricing strategy, the Amazon fire was a sure Dog.

FINANCIAL ANALYSIS OF FLIPKART AND AMAZON

FLIPKART:

INR FY17 FY18 FY19

Revenue 155.60 B 216.5 B 309.31 B

Revenue 18.15% 39.14% 42.87%

Growth

Net income 2.4 B 20.6 B 38.14 B

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  Walmart-owned ecommerce platform Flipkart’s revenue for 2019
was ₹309.31 billion, a 42.87% increase from 2018.
 Its annual revenue for 2018 was ₹216.50 billion, a increase of 39.14%
from 2017.
 Flipkart revenue for 2017 was ₹155.60 billion, a 18.15% increase from
2016.
Net Income
 Flipkart annual net income for 2019 was ₹38.14 billion, a 85.14%
increase from 2018.
  Flipkart annual net income for 2018 was ₹20.6 billion, a 758.33%
increase from 2017.
 Flipkart annual net income for 2017 was ₹2.4 billion, a 55.55%
decrease from 2016.

Amazon:

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Revenue
 Amazon annual revenue for 2019 was $280.52 billion, a 20.45%
increase from 2018.
 Amazon annual revenue for 2018 was $232.88 billion, a 30.93%
increase from 2017.
 Amazon annual revenue for 2017 was $177.86 billion, a 30.8%
increase from 2016.

Gross Profit:

 Amazon annual gross profit for 2019 was $114.98 billion, a 22.68%

increase from 2018.
 Amazon annual gross profit for 2018 was $93.73 billion, a 42.16%
increase from 2017.
 Amazon annual gross profit for 2017 was $65.93 billion, a 38.16%
increase from 2016.

Net Income

 Amazon annual net income for 2019 was $11.58 billion, a 15.04%

increase from 2018.
 Amazon annual net income for 2018 was $10.07 billion, a 232.11%
increase from 2017.
 Amazon annual net income for 2017 was $3.03 billion, a 27.92%
increase from 2016.

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Amazon vs. Flipkart: The Race to Dominate Indian E-
Commerce
Indian e-commerce company Flipkart is in fierce rivalry with Amazon over
the country's online retail market. Both have unique advantages, but the true
test will be which company can best tailor its offerings to the Indian
consumer’s palate.

Amazon has comfortably dominated America’s e-commerce market for

years, but India is still uncertain ground. Another stalwart of Indian e-
commerce has posed a serious threat to Amazon's dominance: Flipkart, a
domestic company and Amazon's biggest competitor on the subcontinent, is
nearly neck-in-neck for the loyalty of a population numbering 1.3 billion.

Flipkart is now tasked with the challenge of maintaining its market-share lead
over Amazon India. On its website, the e-commerce engine claims to be the
country's "leading e-commerce marketplace with over 80 million products
across 80+ categories" and approximately 100 million registered users.
Amazon's catalog, however, trumps that of Flipkart, with over 168 million
different product offerings available in India.

Flipkart has made several high-profile acquisitions over the past few years

including eBay India, PhonePe, and online fashion retailers Mynta and
Jabong, although talks to acquire e-commerce engine Snapdeal fell through
late last year. The Softbank-backed company also has reading portal
WeRead, electronics e-retailer Letsbuy, and Bollywood news site Chakpak
under its belt.

Amazon, on the other hand, has relied less on acquisitions and more on
strategic partnerships with local logistics companies to bolster business.
Nearly 45 percent of Flipkart’s sales currently come from smaller towns and
cities, a customer base that the company has an advantage over because of its
understanding of how to market to an Indian audience. But Amazon doesn’t
have this advantage.

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In response, Amazon has targeted larger cities with more metropolitan
customer bases while also trying to localize its marketing strategy.
Approximately 65 percent of its sales come from larger metropolitan cities in
which it has been able to generate loyalty through Amazon Prime. India
became Amazon's fastest-growing market for Amazon Prime in 2017, having
grown nearly 5 times in size between the beginning of the year and October.
The so-called "everything store" is already aware of the cultural nuances that
distinguish the Indian market from its American counterpart. It has tailored
its strategy in India to cater to distinct characteristics like the dominance of
mobile transactions, the high volume of small and medium businesses, and
the popularity of Cash-on-Delivery (CoD) payment models. In 2015 it
introduced the Amazon Chai Cart, a mobile tea cart that navigated city
streets, serving refreshments to small business owners while simultaneously
spreading word of the benefits of selling online. By the end of the campaign,
the carts had engaged with 10,000 sellers across 31 cities. 

While the two companies duke it out for market dominance, they must both
respond to broader trends of rising internet and smartphone use as disposable
income grows among Indian consumers. While the jury is still out on which
e-tailer will come out on top, India's growing online market spells huge
profits for every company in the race.

25
 CHAPTER 2
SCOPE OF STUDY

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SCOPE OF THE STUDY
The scope of this study undertaken is to find out the factors that influence the
customer satisfaction with security, website design, convenience,
serviceability, trust, delivery system, merchandising and product value in
Flipkart and Amazon as considered factors in this research. This research
aims to identify variables which influence the customer satisfaction and to
highlight which factors that has the most significant influence.

BACKGROUND OF THE STUDY

Consumer Behaviour
Consumer behaviour refers to the mental and emotional process and the
observable behaviour of consumers during searching, purchasing and post
consumption of a product or service Consumer behaviour involves study of
how people buy, what they buy, when they buy and why they buy. It blends
the elements from psychology, sociology, socio psychology, anthropology
and economics. It also tries to assess the influence on the consumer from
groups such as family, friends, reference groups and society in general .Buyer
behaviour has two aspects: the final purchase activity visible to any observer
and the detailed or short decision process that may involve the interplay of a
number of complex variables not visible to anyone.

Consumer Decision Making Process

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  Need recognition: first, we realize we have a need for a product.
Advertising for this stage may highlight an unmet need, a common life
problem, or a desirable new capability.

 Information search: we seek out information about the product by

searching the Web or asking friends. Informative advertising can
demonstrate product performance or superiority.
 Evaluation of alternatives: we compare the choices available
based on various attributes. Comparative ads and two-sided messages
spell out the pros (and to a lesser extent the cons) of an advertiser’s
brand versus competing brands.

 Purchase: we choose the option we like best and buy it. Ads facilitate
purchase by telling us where or how to buy, or perhaps they announce a
price reduction for the product.

 Post purchase satisfaction or dissatisfaction: we use the

product and we’re either satisfied with the purchase or not. Post sale
communications, such as feedback and social networks, help
consumer’s confirm their choices or resolve issues.

AIDA Model in E-Commerce

AIDA stands for Attention, Interest, Desire and Action. It’s the oldest trick in
the sales book, but rarely thought about when it comes to e-commerce. The
idea is that a sales person should follow these four steps when pitching a

28
product to the potential buyer. In the world of e-commerce, you don’t have
your sales person, so this process is be done by online store.

Attention
Using search engines, in most cases visitors will land on product or category
pages. Once the visitor lands on the product page, site have merely a few
seconds to grab his attention. In these few seconds, this visitor will decide
whether this is what he was looking for or he’ll move along. We are talking
about attention, the first part of AIDA process. In the real world, you’d be
trying to catch the attention of the buyer in this step, but online, you already
have his attention. All you need to do is make sure you don’t lose it.

You’ll lose the attention you’ve been given in case your product page is to
crowded and doesn’t give the impression of what it’s really about from the
first look. Too many distracting items can cause your visitor to think he
didn’t find what he was looking for, even though he was on the right product
page. Try finding people that landed on the right product page that perfectly
fits the keyword they entered into search engine, but right after they landed
they used your internal site search to try to find the product they were looking
at. In case there are none of these in your Analytics, your product pages
might be built pretty good from the attention retention point of view.

Interest

In the real world, you would try to make the buyer show some interest in
your product. Luckily visitors that came from search engines searching for
your product already showed the interest, now you need to show
them why they should act. You need to make them desire the product.

Desire

The visitor landed on the product page and you managed not to lose his
attention. Awesome! In this step, you need to make him desire the product.
You can do this in several ways, but what really works well is good product

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representation – readable, scan-able product description, high quality
multiple images from different angles and if possible, video showing the
product. If the product can be shown “in action” that would also be a thing
that encourages desire

Action

Visitor landed, you have his full attention, you made him desire the product.
Now it’s time to make him take the one last step, to “click the button”. Your
“Buy now” or “Add to cart” button has to be the most easily found element
on your product page. It has to be big, in different color than surrounding
elements and on a logical spot.

Some elements can distract the visitor from completing the last step of the
AIDA process. Those can be different banners, or some other buttons that
compete with your “Buy now” or “Add to cart” button’s attention. The
organization wants multiple things from its visitor and several call to actions
are likely to be placed on modern online stores, but the organization needs to
understand, is it more important for visitors to check some other item on
discount on your store, to follow you on Twitter / Facebook, to subscribe to
your newsletter or to buy the item he is looking at this point. All of these
other calls to actions can be present on other pages – such as category page,
CMS pages, checkout success page – but the product page should be as free
of these distractions as possible.

MARKETING MIX OF E-COMMERCE

The 7Ps of marketing is being applied in the online marketing industry. The
effect of marketing mix is being explained below:

 Effective Pricing Strategy

Pricing strategy for e-commerce is one of the most fascinating topics

for any business or marketing professional. By applying various pricing

30
 approaches, your business will be more efficient, profitable and
sustainable in the market. Pricing strategies such as Cost-Plus, Target
Return, Value-Based, Competitive Real-time price optimization are
neatly discussed inside the article. The feature includes great examples
of effective pricing marketing from the e-commerce space.

 Effective Product Strategy

For any e-commerce company, the “Product” is the primary reason for
consumers engaging with your brand and giving you money for
interacting with it.

 Effective Place Strategy

The process of moving products from the producer to the intended user
is called place. In the other words, it is how your product is bought and
where it is bought. This movement could be through a combination of
intermediaries such as distributors, wholesalers and retailers. In
addition, a newer method is the internet which itself is a marketplace
now. Through the use of the right place, a company can increase sales
and maintain these over a longer period of time. In turn, this would
mean a greater share of the market and increased revenues and profits.

 People- The Building Blocks Of Marketing Mix Strategy

People are the most important element of any service or experience.

People have an important role in service delivery, they are relied upon
to deliver and maintain transactional marketing and people play an
important part in the customer relationship. 

 Effective Promotion Strategy

Promotion is a key element in putting across the benefits of your

product or service to the customers. Promotion through PLC, customer
loyalty and its components and messaging fundamentals are explained
31
 here. Also, includes some of the best known loyalty programs from
India’s e-commerce industry. 

 Effective Process Strategy

Process is an element of Services Marketing Mix. Any business

requires a well-defined process to work. In order to purchase the
products in the cart they need to select the checkout action. The
checkout is a six step purchase process with the following tasks:
1. Identifying the client
2. Selecting shipping address and special options
3. Select payment method
4. See overview of entire order
5. Confirm and place order
6. Receive confirmation by email

 Physical Evidence Concept

They put their website web page in other web pages. They also have
their position with certain keywords which make it easier to visitors to
come and visit the website.

32
 CHAPTER 3
RESEARCH METHODOLOGY

33
 RESEARH OBJETIVE

 To know and understand the consumer’s preference of shopping from

Flipkart & Amazon.

 To investigate the major factors that impact customer satisfaction

towards Amazon and Flipkart.

 To compare the customer satisfaction level of Amazon and Flipkart

customers and the aspects of online shopping provider which satisfies
the customers.

 To identify the respondents perception towards Amazon and Flipkart

shopping

DATA COLLECTION METHOD

 Primary Data

It is original primary data, for specific purpose of research project. For

this project, I have to use the common research instrument or tool-
Questionnaire.

 Secondary Data

It will be collected to add the value to the primary data. This may be
used to collect necessary data and records by different websites,
magazines, annual reports, journals, reference books, and
newspapers, etc.

34
 SAMPLE DESIGN

 Sample Unit
For studying consumer preference towards on online shopping
platforms, samples were randomly selected from various geographical
areas.

 Sample Media
Questionnaire in the form of google forms.

 Sampling Methods

1. Random sampling
2. Convenience sampling

 Sample size - 101

35
 CHAPTER 4
DATA ANALYSIS

36
DATA ANALYSIS
The objectives of the research were studied with respect to a regular online
shopper who shopped more than once because they would be the right
respondent to give an insight about the online shopping. Therefore it is
firstly important to understand who is a regular online shopper. In the
survey the respondents were asked the following questions which helped
to know about a regular shopper.

1. What age group do you fall into?

Age Frequency Percentage

10-20 years 13 12.87%
20-30 years 54 53.47%
30-40 years 22 21.78%
40 & above 12 11.88%
Total 101

12% 13%
10-20 years
20-30 years
22%
30-40 years

53% 40 & above

The above table shows that out of 101 respondents 53% of the people are in
the age group of 20-30 years, 22% of people are in the age group of 30-40
years, 13% of people are in the age group of 10-20 years and 12% of the
37
people are in the age group of above 40 years. We have the highest
respondents who do online shopping are younger generation. At the same
time 22% of age group 30-40 years are utilizing online shopping well.

2. What do you do currently?

Profession Frequency Percentage

Business 18 17.82%
Service 30 29.70%
Student 34 33.66%
Unemployed 13 12.87%
Others 6 5.94%
Total 101

6% 18% Business
13%
Service
Student
30% Unemployed
33%
Others

As per the survey, majority of the respondents are students and people who
fall in the service sectors. And also to be known that both of these group are
the powerful internet users in the country.

38
 3. Are you a frequent online shopper?

Response Frequency Percentage

Yes 72 71.29%
No 29 28.71%
Total 101

29%
Yes
No
71%

 As per collected data from the following respondents, 71% of the

people are regular online customers, these are mainly working people
who do not have time to go to shop and make purchase and also the
younger generation are depended on online purchase as they seek
variety of alternatives for the same product.

 29% of the people are not regular online customers because the quality
of the products cannot be known and some people are not flexible to
shop online

39
 4. Which platform do you prefer for your online shopping?

Response Frequency Percentage

Mobile App 84 83.17%
Website 17 16.83%
Total 101

17%

Mobile App
Website

83%

The data indicates that most people find it convenient to shop with
mobile application rather than official website version.

40
 5. What is your most preferred mode of payment while you
purchase from online?

Mode of Payment Frequency Percentage

Net Banking 16 15.84%
Debit/Credit Card 29 28.71%
EMI 2 1.98%
Cash on Delivery 54 53.47%
Total 101

16%
Net Banking
Debit/Credit Card
53% EMI
29%
Cash on Delivery
2%

 Ecommerce players have to gain confidence in terms of providing

security to customer’s sensitive data. When respondent is questioned
with payment method they will use while doing online shopping, most
of the respondents choose cash on delivery method which is 53%. It
can be easily analyzed that cash on delivery is simple and perfect way
to customer to proceed. Even delivery boys are carrying swipe
machines and made more convenient.

 Other preferences like debit/credit card payment and net banking is

slowly gaining momentum.

41
 6. What is your most preferred online shopping site?

Response Frequency Percentage

Flipkart 55 54.46%
Amazon 46 45.54%
Total 101

46% Flipkart
54% Amazon

Ecommerce site that is most appreciated by respondents is Flipkart. Flipkart

is leading with 54% when compared to Amazon, which is having 46% of
respondent’s interest.

42
 7. Which online store has a better & effective mobile app
layout for your ease of shopping?

Site Frequency Percentage

Flipkart 55 54.46%
Amazon 46 45.54%
Total 101

Flipkart
46%
54% Amazon

As per survey, 54% of the respondents prefer the Flipkart mobile application
over Amazon’s because it eases the shopping experience of the customers.

43
 8. When do you mostly shop from your preferred online
store?

Shopping Period Amazon Percentage Flipkart Percentage

Regularly 4 9.09% 11 20.00%
Offers & Discounts 16 36.36% 19 34.55%
Ocassions 10 22.73% 7 12.73%
Rarely 14 31.82% 18 32.73%
Total 44 55

20

15

10

0
Regularly Offers & Ocassions Rarely
Discounts

Amazon Flipkart

From above table and graph we can interpret that:

 Regularly: As per research conducted, 10% of loyal Amazon customers
did buy their necessities regularly and 20% of Flipkart customers
bought goods for their regular needs.

 Offers & discounts: Around 36% of Amazon customers did buy their
requirements only when Amazon gives them offers and discounts due
to low prices offered. Whereas 35% of Flipkart customers love
shopping only in offers and discount periods.

 Occasions: During festival occasions and various other occasions both

ecommerce sites offers new and latest products and trends which

44
 attracts the customers and help them to celebrate their occasions. This
is why, 23% of Amazon customers love to shop in occasions and 13%
of Flipkart customers find the site useful on occasions.

 Rarely: Customers do know when they should shop and when they
shouldn’t. This depends upon a lot of factors like price, delivery
location, income, extra charges or overpricing of a product etc. Hence it
is seen in the survey that 32% of Amazon customers and 33% of
Flipkart customers rarely shop.

9. Which is the most frequently purchased product from

your preferred online store?

Product Category Amazon Percentage Flipkart Percentage

Clothing 11 23.91% 26 47.27%
Footwear 2 4.35% 6 10.91%
Electronics 18 39.13% 10 18.18%
Kitchen & Home Appliances 8 17.39% 4 7.27%
Accessories & Cosmetics 7 15.22% 9 16.36%
Total 46 55

30
25
20
15
10
5
0
Clothing Footwear Electronics Kitchen & Accessories &
Home Cosmetics
Appliances

Amazon Flipkart

45
 Clothing: As per the research conducted 24% of the people purchase
clothes from Amazon and 47% of the people purchase clothes from
Flipkart because of quality and certain factors.

 Footwear: The study shows just 4% of the people prefer Amazon to

purchase footwear and 11% of people choose Flipkart to have trendy
and stylish footwear for both men and women.

 Electronics: As per survey conducted 39% of the people choose

Amazon to purchase electronic items as good discounts are provided
over. And 18% people purchase electronics from Flipkart.

 Kitchen and home appliances: As per the information collected, 17% of

the people purchase kitchen and home appliances from Amazon and
7% from Flipkart. It may include those products which are not easily
available in shops and also the other reason may be that the online price
is less than ordinary shopping price.

 Accessories and cosmetics: 15% of the respondents opted for Amazon

and 16% opted for Flipkart to buy accessories and cosmetics. Possible
factors that affect for choosing an online purchase may be factors like
variety, affordability, convenience etc. Most respondents don’t prefer to
buy because they may be not wanting to compromise with the quality
of the product. One of the reason can also be that the products are
easily available on the nearby shops and moreover people do not have
patience to wait for these products until they are delivered to them.

46
 10. Which online store has products at a lower price as
compared to the other?

Sites Frequency Percentage

Flipkart 58 57.43%
Amazon 43 42.57%
Total 101

43% Flipkart
57% Amazon

As per the survey, majority of the respondents prefer Flipkart over Amazon
for giving best bang for their buck and helps them to save a bit extra on their
purchases.

47
 11. Which online store has a better product display &
description?

Site Frequency Percentage

Flipkart 52 51.49%
Amazon 49 48.51%
Total 101

49% Flipkart
51% Amazon

As per survey, the both Flipkart and Amazon have good product visibility
and detailed description (like price, discount and offers, fee, specifications,
dimensions, content of package etc.) But, Flipkart has slight edge over
Amazon.

48
 12. Which online store has a variety of product choices in-
terms of sorting & filtering as per individual
requirements & seller ratings?

Site Frequency Percentage

Flipkart 51 0.5049505
Amazon 50 0.4950495
Total 101

Flipkart
50% 50% Amazon

As per the data collected, both Amazon and Flipkart stands out to be in
perfect competitors to each other in providing of a variety of product choices
which allows shoppers to sort and filter out products according their
requirements (like gender, age, availability, size, features, colour etc.) and
seller ratings given by other customers.

49
 13. Which online store gives you a better customer
feedback, rating & reviewing system?

Site Frequency Percentage

Flipkart 50 49.50%
Amazon 51 50.50%
Total 101

Flipkart
50% 50%
Amazon

As per the survey, both Amazon and Flipkart shows equal customer
feedback, rating and reviewing system.

14. Which online store has a better customer-friendly

‘Exchange/ Return/Replacement and/or Refund Policy’?

Site Frequency Percentage

Flipkart 52 51.49%
Amazon 49 48.51%
Total 101

50
 Flipkart
49% 51%
Amazon

Both ecommerce sites shows almost equal proportion of respondents but

Flipkart has got slightly more edge as compared to Amazon.

15. Which online store has a quick delivery system?

Site Frequency Percentage

Flipkart 47 46.53%
Amazon 54 53.47%
Total 101

51
 Flipkart
47%
53% Amazon

As per the survey, 53% of the respondents prefer Amazon’s swift product
delivery system over Flipkart.

52
CHAPTER 5
FINDINGS

53
FINDINGS
As per the survey data, my findings are as followed:
 Majority of online shoppers are students and servicemen who are
between 20 years to 40 years of age who amongst powerful internet
users in the country.
 People prefer to shop with mobile application rather than logging into
the official website solely due to the shopping experience.
 The most preferred mode of payment while purchasing online is Cash
on Delivery and card transactions.
 Flipkart is more preferred by the people over Amazon for online
shopping due to various factors.
 People prefer to shop with Flipkart over Amazon because of the ease of
shopping experience through its official website and mobile
application.
 Online shopping is most preferred by the customers at the time of
availability of offers and discounts.
 Majorly selling product categories are clothing, electronics and
accessories and cosmetics.
 Flipkart has slight edge over Amazon in terms of lower product cost,
product description and display and exchange/return/replacement and
refund policy.
 While Amazon has a better swift product delivery.
 It is also found that Amazon and Flipkart are both equally good in
certain activities like products choices and customer feedback and
ratings.

54
 CHAPTER 6
SUGGESTION AND CONCLUSION

55
SUGGESTIONS

 Amazon needs to improve its mobile application for improving the

shopping experience of their customers and to attract more customers.

 EMI facility can be implemented at the time ‘sale’ to increase the

tendency of shopping.

 Amazon should improve the product visibility, description and display,

return and refund policies.

 Flipkart has good service quality but should work on quick delivery of
product to its customers.

CONCLUSION

The study consisted with all the work flows of major e-commerce players
in India, Flipkart and Amazon. How 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. They 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 to be
lead and rest will follow. Based upon consumer’s survey we got our clear
winner which won from slight margin, and it is Flipkart. The Indian
company understood Indians very well and made its roots stronger in the
country. Amazon is also giving very tough competition to Flipkart even
though it is an outside company when compared to Flipkart. May be it
takes some time to overcome, but definitely they are doing very well in
Indian e-commerce market.

56
 BIBLIOGRAPHY

 https://www.marketing91.com/swot-analysis-of-flipkart/

 https://brandyuva.in/2019/08/marketing-strategies-of-flipkart.html

 https://www.marketing91.com/marketing-strategy-flipkart/

 https://www.marketing91.com/marketing-mix-amazon/

 https://www.marketing91.com/marketing-strategy-of-amazon/

 https://www.marketing91.com/marketing-strategy-of-amazon/

 https://issuu.com/sanjaykumarguptaa/docs/analysis_of_customer_pe
rception_tow

 https://www.dnaindia.com/analysis/report-amazon-vs-flipkart-who-
will-dominate-the-ecommerce-market-in-india-2817538

 https://craft.co/flipkart/metrics

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