Roll Number: 2063

PROJECT SYNOPSIS

MAAZ AHMED KHAN rd

MBA 3 SEMESTER
HALLTICKET NO. 140220672063

AMJAD ALI KHAN COLLEGE OF BUSINESS ADMINISTRATION

OSMANIA UNIVERSITY
 TABLE OF CONTENTS

PAGE
CHAPTER NO CONTENTS
NUMBER

INTRODUCTION 2
I

II COMPANY PROFILE 6

RESEARCH METHODOLOGY 10

Objectives 11
III
Sources of data 11
Need of the study 12
Scope of the study 12
Limitations of the study 13

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 I
INTRODUCTION

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 INTRODUCTION

In the recent times, there has been a massive change in the way of customer‟s shopping.
Internet and technology has transformed the way people shop. Online shopping refers to the
act of purchasing goods and services from a vendor over the internet through the use
of a web browser or mobile application.

The Internet has become a primary element of our day-to-day operations. Online shopping
can be done anywhere and at any time. Consumers find online shopping more convenient
than in-store shopping as it saves time, effort and money.

Consumer behaviour is the study of individuals, groups, or organizations and all the activities
associated with the purchase, use and disposal of goods and services. Consumer behaviour
consists of how the consumer's emotions, attitudes and preferences affect buying behaviour.

Dawn, S.K & Kar, U(2011) suggested that consumers are always craving for modern ways
of shopping. The e-tailers in India must attract a growing segment of customers who
are technologically competent, place a high significance on convenience and are willing to
pay a premium price if they discover the product they are looking for. Therefore, e-tailers
of India need to improve convenience and value for consumers and assist them in
overcoming their fears around security. Customer care should be a top priority in leading
online companies.

E-Commerce
The term „online‟ means „on the Internet‟. Online shopping is part of E-Commerce, which
stands for Electronic Commerce. E-commerce (electronic commerce) is the buying and
selling of goods and services, or the transmitting of funds or data, over an electronic network,
primarily the internet.

How does e-commerce work?

E-commerce is powered by the internet, where customers can access an online store to
browse through, and place orders for products or services via their own devices.

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As the order is placed, the customer's web browser will communicate back and forth with the
server hosting the online store website. Data pertaining to the order will then be relayed to a
central computer known as the order manager -- then forwarded to databases that manage
inventory levels, a merchant system that manages payment information (using applications
such as PayPal), and a bank computer -- before circling back to the order manager. This is to
make sure that store inventory and customer funds are sufficient for the order to be processed.
After the order is validated, the order manager will notify the store's web server, which will
then display a message notifying the customer that their order has been successfully
processed. The order manager will then send order data to the warehouse or fulfillment
department, in order for the product or service to be successfully dispatched to the customer.
At this point tangible and/or digital products may be shipped to a customer, or access to a
service may be granted.

Platforms that host e-commerce transactions may include online marketplaces that sellers
simply sign up for, such as Amazon, FlipKart, Ebay, etc.

E-Commerce in India
The exponential growth in internet and online infrastructure along with organised retailing
boosted the Indian E-commerce market. Policies from the government had strengthened the
market further. This was propelled by government policies that allow 100% foreign direct
investment in B2B e-commerce. 2019 frameworks expect FDIs for e-commerce in the
marketplace model and ensured a level playing field for all companies.

In recent years, some internet start-ups had effortlessly found a stronghold in niche markets
of necessity, becoming household names and verbs. Some of these successes include food
delivery services like Swiggy and Zomato, Grofers and Big Basket for grocery online,
ticketing company BookMyShow and travel/hospitality companies Oyo and MakeMyTrip.

As per statista, the active internet users in India are about 624 million. The current
penetration of E-Commerce is about 76.7% and the Indian E-commerce market is expected to
grow to 111.40 billion USD by 2025 from 46.2 billion USD as of 2020.

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Consumer Behaviour
Consumer behaviour is the study of consumers and the processes they use to choose, use
(consume), and dispose of products and services, including consumers‟ emotional, mental,
and behavioural responses. Consumer behaviour incorporates ideas from several sciences
including psychology, biology, chemistry, and economics.

Studying consumer behaviour is important because it helps marketers understand what

influences consumers‟ buying decisions. Consumer behaviour is often influenced by different
factors. Marketers should study consumer purchase patterns and figure out buyer trends.

Types of consumer behaviour

1. Complex buying behaviour

This type of behaviour is encountered when consumers are buying an expensive, infrequently
bought product. They are highly involved in the purchase process and consumers‟ research
before committing to a high-value investment. Imagine buying a house or a car; these are an
example of a complex buying behaviour.

2. Dissonance-reducing buying behaviour

The consumer is highly involved in the purchase process but has difficulties determining the
differences between brands. „Dissonance‟ can occur when the consumer worries that they
will regret their choice.

3. Habitual buying behaviour

Habitual purchases are characterized by the fact that the consumer has very little involvement
in the product or brand category. Imagine grocery shopping: you go to the store and buy your
preferred type of bread. You are exhibiting a habitual pattern, not strong brand loyalty.

4. Variety seeking behaviour

In this situation, a consumer purchases a different product not because they weren‟t satisfied
with the previous one, but because they seek variety. Like when you are trying out new
shower gel scents.

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 2
COMPANY PROFILE

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 COMPANY PROFILE

AMAZON

Sector Retail Trade

Industry Internet Retail

Headquarters Seattle, WA

Jeff Bezos (Founder and Executive Chairman)

Andrew R. Jassy (President, Chief Executive

Officer & Director)

Brian T. Olsavsky (Chief Financial Officer &

Senior Vice President)
Top Executives
Amit Agarwal (Senior VP & Country Manager-
Amazon India)

David A. Zapolsky (Secretary, Senior Vice

President & General Counsel)

Rohit Prasad (Vice President & Head Scientist-

Alexa)

Mutual fund holders - 33.25%

Shareholders Other institutional - 27.51%
Individual stakeholders - 10.57%

Market Cap $1.6T

Website www.amazon.com

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Company Description
Amazon.com, Inc. is a multinational technology company, which engages in the provision of
online retail shopping services. It operates through the following business segments: North
America, International, and Amazon Web Services (AWS). The North America segment
includes retail sales of consumer products and subscriptions through North American-focused
websites such as www.amazon.com and www.amazon.ca. The International segment is
engaged in retail sales of consumer products and subscriptions through internationally-
focused websites. The Amazon Web Services segment consists of the global sales of
compute, storage, database, and AWS service offerings for start-ups, enterprises, government
agencies, and academic institutions. The company was founded by Jeffrey P. Bezos in July
1994 and is headquartered in Seattle, WA.

History
Amazon was founded by Jeff Bezos in July 1994, who chose Seattle for its abundance of
technical talent, as Microsoft was in the area. Mackenzie Scott was also instrumental in its
founding, and drove across the country with Bezos to start it. When Scott graduated, she
applied to work for D. E. Shaw & Co., a quantitative hedge fund in New York City, as a
research associate to "pay the bills while working on her novels". Bezos, then a vice-
president at the firm, met her when he interviewed her.

Amazon went public in May 1997. It began selling music and videos in 1998, and began
international operations by acquiring online sellers of books in the United Kingdom and
Germany. The following year, it began selling items including video games, consumer
electronics, home improvement items, software, games, and toys.

In 2002 it launched Amazon Web Services (AWS), which provided data on website
popularity, Internet traffic patterns, and other statistics for marketers and developers. In 2006,
it grew its AWS portfolio when Elastic Compute Cloud (EC2), which rented computer
processing power, provided Simple Storage Service, and rented data storage via the Internet,
also became available. That year, Amazon also started Fulfillment by Amazon which allowed
individuals and small companies to sell items through the company's Internet site. In 2012,
Amazon bought Kiva Systems to automate its inventory management business. It purchased
the Whole Foods Market supermarket chain in 2017.

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On February 2, 2021, Amazon announced that Jeff Bezos would step down as CEO to
become executive chair of Amazon's board in Q3 of 2021. Andy Jassy, previously CEO of
AWS, became Amazon's CEO.

Products and Services

 Retail goods
 Amazon Prime
 Consumer electronics
 Digital content
 Amazon Studios
 Video Direct
 Delivery
 Groceries
 Amazon Business
 Amazon Drive
 Private labels and exclusive marketing arrangements
 Amazon Web Services
 Amazon Publishing
 AmazonSmile
 Amazon Local
 Retail stores
 Amazon Home Services
 Amazon Cash/Top Up

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 III
RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

 To understand the consumer behaviour towards online shopping.

 To identify the perception of consumers towards online shopping.
 Assess the issues and challenges of online shopping in India.

SOURCES OF DATA

Primary data
These are the data which are collected from some primary sources i.e., a source of origin where
the data generate. These are collected for the first time by a researcher or an agency for any
statistical analysis. “Data which are gathered originally for a certain purpose are known as
primary data.”

The data required for the study was collected from the selected respondents by Personal
interview method using well-structured questionnaire. Information was collected from 100
respondents.

Secondary data
These are the data which are collected from some secondary source i.e. the source of reservation
storage where the data is collected by one person and used by other agency. These are collected
as primary data and used by other as secondary data.

The secondary data on location, demography and other details about the study area are collected
from records company portals, web sources, journals and magazines.

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NEED OF THE STUDY

 The exponential growth in internet and online infrastructure along with organised
retailing has given rise to E-Commerce.
 E-Commerce is a relatively new business model that requires research.
 Consumer behaviour has led to a constant but increasing need to conduct marketing
research.
 This research is an insight into the mind of the consumer, with the help of which the
organizations will become aware of the consumer behaviour and improve their
offerings in the market place.
 The basic need of this project is to know the behaviour amongst the respondents, with
regard to online shopping at Amazon.

SCOPE OF THE STUDY

 This study covers customers about Amazon in the area of Hyderabad, India.
 The study makes effort to study the consumer behaviour towards online shopping at
Amazon.
 The subject has been taken for the research as it plays a key role in the success in the
E-Commerce sector.
 Studying consumer behaviour is important because it helps marketers understand
what influences consumer buying decisions.
 The research will also be beneficial in analysing the market position of the company
and measures which should be adopted by Amazon to increase their market share in
the region of Hyderabad.

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LIMITATIONS OF THE STUDY

 The present research is restricted to the city of Hyderabad, India only.

 The sample size taken is only 100 and as such is very small.
 Time being a limiting factor was not sufficient to gather opinions from majority of the
respondents.
 While every care has been taken to eliminate perceptual bias from the side of the
researcher and the respondents, however, certain element of bias might have set in to
the research.
 The study is concentrated on customer behaviour towards online shopping at Amazon.
No attempts were made to study other e-commerce portals.

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