Consumer inclination towards retail e-commerce business models:

Marketplace vs Inventory in the 18-45 age group in the Bhagalpur Region

RESEARCH PROJECT FIRST REVIEW SUBMITTED FOR THE

FULFILLMENT OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

FOR THE BATCH 2019-21

UNDER
HONOURS SCHOOL SYSTEM
AT
UNIVERSITY BUSINESS SCHOOL
PANJAB UNIVERSITY
CHANDIGARH

SUBMITTED TO SUBMITTED BY
Dr. Smriti Sood MRINAL CHANDRA
PROFESSOR MBA - A
UNIVERSITY BUSINESS SCHOOL UNIVERSITY BUSINESS SCHOOL
PANJAB UNIVERSITY, CHANDIGARH PANJAB UNIVERSITY, CHANDIGARH

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 TABLE OF CONTENTS

LIST OF REVISIONS/SUGGESTIONS: 3
EXTENDED REVIEW OF LITERATURE: 4
RESEARCH OBJECTIVE 5
HYPOTHESIS: 5
METHODOLOGY/RESEARCH DESIGN 6
QUESTIONNAIRE: 8
DATA COLLECTION/ANALYSIS: 11
REFERENCES 13

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List of revisions/suggestions:

List of revisions and /or suggestions given by the panel members during synopsis
presentation on 11th Nov, 2020.

1. Changes were suggested in the title of the research project. Such changes have
been implemented on the title page itself.

2. Changes were also suggested about proper format for the references section.
These also have been rectified and properly formatted in the references section.

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Extended Review of Literature:

According to (Bhat, Kansana et al., 2016), E-commerce is a boom in the modern business. E-
commerce means electronic commerce. E-commerce (Electronic commerce) involves buying and
selling of goods and services, or the transmitting of funds or data, over an electronic network,
predominantly the Internet. E-commerce (Electronic commerce) is a paradigm shift influencing
both marketers and the customers. Rather e-commerce is more than just another way to boost the
existing business practices. It is leading a complete change in traditional way of doing business.
This significant change in business model is witnessing a tremendous growth around the globe
and India is not an exception. A massive internet penetration has added to growth of E-
commerce and more particularly start-ups have been increasingly using this option as a
differentiating business model.

There are advantages and disadvantages to each of the models. The review of literature sheds
additional light on these aspects.

While the marketplace model provides exposure to millions of viewers, it also forces one to
compete with thousands of sellers across various products. It also provides a range of diverse
products to any consumer.

According to (Maier et al., 2020), practitioners argue that firms can build their e-commerce
business through acquiring customers by selling on the marketplace. Indeed, a marketplace could
complement a retailer’s offering. Alternatively, cannibalization might occur from losing
customers from one’s website to the online marketplace. Acquiring customers through the
marketplace might be cheaper than through other sources (estimated at 24% of initial sales).
However, online retailers should be aware that this strategy strengthens the marketplace and may
have potential negative long-term consequences (e.g., through marketplace control of the
customer relationship).

Marketplaces can also offer services for sale, but this study will focus majorly on retail goods
that can be purchased at marketplaces. Marketplaces offer undeniable advantages, such as
prompt access to a lot of clients, high recognition value, first contact venue (many buyers start

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looking for products on marketplaces), ready technical solutions, a payment system and logistics.
They are great venues for testing products and new sales markets and for collecting information
from clients. Marketplaces also seek to earn additional revenues by handling complementary and
supplementary functions for sellers such as warehousing, logistics, returns, shipping, packaging,
claims, refunds etc. Marketplaces provide both a product as well as delivery as a holistic
experience to the consumer. Add-on sales are used for existing clients. This may be taking the

Research Objective:
1. To determine the relationship between the purchase decisions of e-commerce
consumers and the underlying business models being utilized by the service providers.
2. To determine the relationship between the quality of service being delivered to
consumers and the underlying models of e-commerce.
3. To determine the relationship between consumer satisfaction and the underlying
models of e-commerce being used.
4. To provide recommendations on formulating relevant marketing strategies in the light
of the above.

Hypothesis:

H1: There is significant impact of the underlying business models on the purchase decisions of
the e-commerce consumers.

H2: There is significant impact of the underlying business models on the quality of service
being delivered to the e-commerce consumers.

H3: There is significant impact of the underlying business models on the consumer satisfaction
of the e-commerce consumers.

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Methodology/Research Design:

In order to meet the above objectives, the following research methodology is proposed. It is
further sub-divided into a number of sections. A descriptive research will be conducted in order
to gain insight into the behavior and attitudes of the consumers in the e-commerce arena with
regard to the business model.

Data Collection: The primary data will be collected with the help of a structured questionnaire.
The questionnaire will be broadly divided in to three categories, the first category consisting of
the demographic questions, the second will find out about the frequency of online shopping by
the individual and their behavior in the process (such as preferences, reaction to visuals, etc.),
and the third will enquire about the ease of using online shopping and preferences in conducting
such monetary transactions amongst inventory-led, marketplace or informal segment of sellers
with a focus on various factors like delivery, after-sales support, packaging, timely updates etc.

Research design: Descriptive research will aim to accurately and systematically describe a
population, situation or phenomenon. It will be used to answer what, where, when and how
questions, but not why questions. A descriptive research design will use a wide variety of
research methods to investigate one or more variables

Variables:

Dependent variable: Customer satisfaction, Service Quality, Purchase Decisions.

Independent variable: Models used in e-commerce namely – marketplace and inventory.

Sampling: The sampling method used will be of convenience sampling. This will be done to
obtain basic data and trends regarding the study without the complications of using a randomized
sample which require more formal access to lists of populations. Also, due to the social
distancing norms mandated in view of the pandemic, convenience sampling is an ideal choice for
aiding in data collection.

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Unit of population: Individual

The sample size would be 100-150.

Extent: Bhagalpur Tier 3 city region

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Questionnaire:

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Data Collection/Analysis:

Collected Data from the structured questionnaire is analysed using a mix of descriptive and
inferential statistical tools such as correlation.

Likert scale analysis and correlation analysis will be utilized for the analysis of data. The
correlation would be used in order to analyse the extent and the nature of relationship (positive or
negative) that exists between the chosen variables. Likert scale analysis will be used to scale the
responses in order of intensity and attitude alignment.

Variable Sub-Variables References

• Assurance
• Reliability
Quality of service Servqual Scale developed by Parasuraman
• Tangibles
(Part A) et. al., 1988.
• Empathy
• Responsiveness

• Doctor’s conduct
Patient Satisfaction • Convenience Scale developed by Linder Pelz et al.
(Part B) • General 1985.
Satisfaction

The 5-point Likert scale is used to measure the defined variables. The quality-of-service
questionnaire has the following scale:
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree

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 5. Strongly agree

The Customer satisfaction questionnaire has the following scale:

1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree

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References:

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