A Term Paper on

CUSTOMER’S PERCEPTION ABOUT ONLINE SHOPPING

WITH SPECIAL REFERENCE TO AMAZON

Report Submitted in Partial

Fulfilment of the Requirements for the Award of the Degree of

BACHELOR OF COMMERCE (HONS.)

BY
MANISHA ARORA
(Enrolment No A60004612345)

Under Guidance of
Ms. CHHAVI AGARWAL
Assistant Professor

Amity Business School

Amity University Madhya Pradesh
Nov-2020
 ACKNOWLEDGEMENT.

Acknowledgement is not a mere obligations but epitome of humility and ineptness to all
those who have helped in the completion of this project . I am thankful to Prof (Dr) Anil
Vashisht and Ms. Chhavi Agarwal, Assistant Professor for their constant guidance and
encouragement provided in this endeavour. I also thank my parents for their continuous support,
understanding and patience without whose support and understanding this endeavour would have
never been fruitful. I also thank all my friends for helping me out in completing this project and
helping me in solving various problems encountered during the progress of this term paper.

MANISHA ARORA

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 ABSTRACT

Amazon is a well known e-commerce organisation all over the world. Amazon has also started
the cloud computing, which is the technique of storing data online and the same data can be
accessed across the world with a username and a password. Amazon started as a bookstore with
an aim to become the world’s largest online selling portal.
Amazon has recently launched some new projects and achieved great heights in some existing
ones. It’s Prime service, after 13 years post launch has hit 100 million subscribers globally,
Amazon’s Web Services like machine learning, artificial intelligence has kept the relentless pace
and brought $20 billion revenue, Amazon Marketplace gave opportunity to over 3,00,000 US
based SMB’s (Small & Medium sized Businesses) to sell their products worldwide, Alexa, an
Amazon virtual assistant which works as an helping hand is a smart device, capable of voice
interaction, music playback, providing information regarding sports, weather, traffic etc and can
also make to-do lists, set alarm, stream podcast and a lot more. Customers bought Amazon
devices worth of tens of millions of Echo devices, and Echo Dot and Fire TV Stick with Alexa.

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 Contents
Page

Front Page
Acknowledgement i
Abstract ii

Chapter 1: INTRODUCTION
1.1 Introduction to Amazon 1

1.2 Online Shopping benefits & Weakness 2

1.3 Traditional vs Online Shopping 3

Chapter 2: REVIEW OF LITERATURE 8 -14

Chapter 3: RESEARCH METHODOLOGY 15

Chapter 4: RESULTS & DISCUSSION 16 -25

4.1 Financial analysis of Amazon 16
4.2 Data Analysis 20
Chapter 5: CONCLUSION AND FUTURE PROSPECTS 30
References
Plagiarism Report

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 Chapter1
INTRODUCTION
Amazon.com, Inc., doing business as Amazon, is an American electronic commerce and cloud
computing company based in Seattle, Washington, that was established by Jeff Bezos on July 5,
1994. The tech monster is the largest Internet retailer in the world as estimated by revenue and
market capitalization, and second biggest after Alibaba Group in terms of total deals.
The amazon.com site began as an online bookstore and later broadened to offer video, MP3
downloads streaming, audiobook downloads/streaming, software, videogames, electronics, attire,
furniture, sustenance, toys, and gems. The organization likewise produces consumer gadgets—
Kindle e-readers, Fire tablets, Fire TV, and Echo and is the world's biggest supplier of cloud
infrastructure services. Amazon additionally offers certain low-finished results under its in-house
mark Amazon Basics.

1.1 Amazon and its launch

Amazon has launched retail sites for the United States, the United Kingdom and Ireland, France,
Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, and Mexico.
In 2016, Dutch, Polish, and Turkish dialect renditions of the German Amazon site were
additionally launched. Amazon likewise offers universal delivery of a portion of its items to
certain different nations.
In 2015, Amazon surpassed Walmart as the most profitable retailer in the United States by
market capitalization. Amazon is the fourth most important open company in the world (behind
only Apple, Alphabet, and Microsoft), the largest Internet organization by revenue in the world,
and after Walmart, the second biggest manager in the United States. In 2017, Amazon acquired
Whole Foods Market for $13.4 billion, which inconceivably expanded Amazon's quality as a
block and-concrete retailer. The position secured by Amazon was deciphered by some as an
immediate endeavor to challenge Walmart's customary retail stores. In 2018, for the primary
time, Jeff Bezos released in Amazon's investor letter the number of Amazon Prime subscribers,
which at 100 million, is around 64% of family units in the United States.

The organization was established because of what Jeff Bezos called his "lament minimization
system," which portrayed his endeavors to fight off any second thoughts for not taking an
interest sooner in the Internet business boom during that time. In 1994, Bezos left his work as VP
of D. E. Shaw and Co., a Wall Street firm, and moved to Seattle, Washington, where he started
to chip away at a business plan for what might progress toward becoming Amazon.com.
On July 5, 1994, Bezos at first consolidated the organization in Washington State with the name
Cadabra, Inc. He later changed the name to Amazon.com, Inc. A couple of months after the fact,
after a legal counselor misheard its unique name as "dead body". In September 1994, Bezos
bought the URL Relentless.com and quickly viewed as naming his online store Relentless, yet
companions revealed to him the name sounded somewhat evil. The space is as yet claimed by
Bezos and still diverts to the retailer

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 Chapter 2
REVIEW OF LITERATURE

Weber, K. and Roehl, W. S. (1999) conducted a study on those who search for or purchase
travel products through on-line with the age group of 26 to 55 years. Results on the basis of the
study concerns about credit card security, evaluation of product quality, and privacy issues are
the main problems faced while on-line purchase of travel products, were made.
Vellido et al. (2000) pointed out in his research, that there are nine factors associated with
user’s perception of online shopping. Among those factors the risk perception of users was
demonstrated to be the main discriminator between people buying online and people not buying
online. Other discriminating factors were control over, and convenience of, the shopping process,
affordability of merchandise, customer service and ease of use of the shopping site.
Goldman Sachs (2001) found in his study price, quality of service and information, speed and
reliability of delivery, ease of on-line ordering, and trust towards vendors are important factors
for consumers considering online purchases that will increasingly determine their propensity to
engage in ecommerce.
Athiyaman (2002) highlighted the importance of such word of mouth recommendations,
finding that social influences have been found to be important determinant of internet users'
intention to purchase air travel online, second only to the attitude towards online purchasing.
Corbitt, Thanasankit, and Yi (2003) argue that information to make the purchase and to be
able to make comparisons with alternative offers, plays an important role in the absence of sales
staff and the inability to see and try the product. The cost of accessing the Internet is also a
decisive factor for engaging in Internet activities. While low prices do not guarantee high
penetration, they are an important factor for more widespread development of the Internet and
consequently, of electronic commerce.
Lillian Clark and Peter Wright (2004) in their study reviewed the research into the various
issues that may differentiate online consumer behaviour and whether they are able to produce the
understanding needed to construct behavioral models that can help realize the full potential of
ecommerce. The study concluded that a more comprehensive approach to modeling online
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consumer behaviour is needed in order to coherently describe the online consumer experience.
Nik Kamariah Nik Mat (2006) studied that the higher website trust will create higher intention
for online shopping. The study provides the consumers do not trust the website during online
shopping. Maybe another factors are very important than trust like types of products. This result
however is in contradiction with the result depicted in other research which shows trust level
may affect consumers’ willingness to purchase and propensity to return to the site.
Venkoba Rao (2009)carried out in his study consumers’ attitude towards online shopping is a
prominent factor affecting actual buying behavior. The results of study of perceptions of 200
online purchasers in Hyderabad reveal trust, security, Internet speed, and responsiveness
significantly affect online purchasers’ behavior. In addition, on examination of demographic
variables like gender, age and education are used; the study reveals that might help organizations
develop effective strategies eventually leading to customer satisfaction.
Erden Tulin (2012) in his research report helped the business owners again, by posting some
comprehensive status about online consumer behaviour. For this purpose, the study has broken
out the industry, into particular field. The study revealed that 80% of internet users go online to
find health related information, 85% of Google users have made an online purchase in the past
six months, approximately 20 million people are browsing new home listing each month and
more than 70% of Google users have shown some interest in a financial service product.
Venkatesh (2016) in his article analyzed the new trends in marketing and observed that several
developments in technology have completely transformed the world and made life easier for
people on the transactions of business and work. Notable among these is called “Internet and
Online Marketing”. In essence, this activity enables buyers and sellers of goods and services to
get their task accomplished without the necessity to travel. In internet marketing, the users access
the products of their choice but it is not possible to trace and test all aspects of the marketing
campaign.
Chih-Chien Wang (2019) analyzed that knowledge is one important factor influencing the level
of trust. The results revealed that knowledge is positively associated with trust and online
shopping activities.

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 Chapter 3
RESEARCH METHODOLOGY

3.1 Methodology
In this study, a combination of both Primary & Secondary data has been used. Primary data is
used in the form of questionnaire method, which has been created using Google forms &
distributed among internet & social media users. In addition to it, secondary data has been used
to support the study.
 OBJECTIVES OF STUDY

 SAMPLE SIZE
100 samples were selected for the study at Gwalior. Sample consists of student, professionals etc
 SAMPLE AREA
Gwalior is area from where all this information collected
 DATA COLLECTION
Both primary and secondary data were used.
i. Primary data: data regarding the topic is collected directly by interacting with the
employees by using structured questionnaire method.
ii. Secondary data: the secondary data was collected from the existing data sources,
catalogues, internet.
 SAMPLING
The questionnaire was initially pilot-tested by trainer. The results of the pilot test proved to be
satisfactory, since all the respondents found most of the questionnaire items understandable.
Nevertheless, some wording mistakes and unwanted questions were found, which were corrected
in the questionnaire’s version that was finally distributed in the field research. Respondents were
approached randomly.

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  MODE OF ANALYSIS
The instrument used for data collection was in the form of questionnaire. The questionnaire was
used as it facilitated the tabulation and analysis of the data to be collected. The data collected
was subjected to simple frequency distribution and percentage analysis.

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 Chapter 4
RESULT AND DISCUSSION
In August turned into the second traded on an open market U.S. organization to be esteemed at
more than $1 trillion, as the tech monster ventures into new lines of business that are helping turn
record benefits.
The breakthrough comes one month after Apple first passed the $1 trillion limit on Aug. 2.
Apple is the main $1 trillion organization in history.
Amazon shares ascended as much as 1.9 percent Tuesday morning to $2,050.50 — 23 pennies
over the sum expected to knock the organization over the $1 trillion line. Amazon's stock has
expanded 70 percent so far this year as U.S. tech stocks keep on achieving record highs. In spite
of the fact that the stock shut the day down 1.3 percent, Amazon was underneath the $1 trillion
stamp.
Amazon's market valuation as of late pulled in front of two other tech monsters — Google's
parent organization, Alphabet, and Microsoft — to hit $1 trillion. Microsoft at present has a
market top of $854.5 billion, while Alphabet is not far behind at $840.3 billion. Apple's valuation
has ascended to $1.1 trillion since it initially passed the edge. Yet, Amazon's stock development
has outpaced the opposition: Alphabet's stock has risen 15 percent this year, while offers of
Apple and Microsoft are up around 30 percent.
Amazon, established by CEO Jeffrey P. Bezos as an online book retailer in 1994, has developed
quickly into one of the nation's biggest and most compelling organizations. Notwithstanding its
lead web based business, the Seattle-based monster likewise takes part in various different
ventures, including distributed computing, home security and motion picture generation. It is the
nation's second-biggest private boss, behind Walmart, thus far this year has posted $4.1 billion in
benefit. (Bezos likewise claims The Washington Post.)
Bezos is the greatest recipient of Amazon's rising stock value: He is the world's wealthiest
individual and, as of Tuesday evening, was worth $166 billion, as indicated by the Bloomberg
Billionaires Index.
Investigators said the accomplishment of the organization's cloud business, Amazon Web
Services, and quickly developing promoting arm have consoled speculators who have since a
long time ago stressed over Amazon's benefit. The organization broadly did not turn a benefit
until 2001, and, after its all said and done, results were spotty from quarter to quarter as Amazon
reinvested in its business.
In any case, that has started to change: Amazon has now detailed a benefit for 13 quarters, with
profit growing 12-overlap to $2.5 billion in the latest quarter. Those outcomes have inspired
speculators and helped lift its offers to record highs.
"For quite a long time, speculators have scrutinized Amazon's capacity to develop its net
revenues," said Victor Anthony, overseeing chief of Aegis Capital. "Since it has a few high-edge
income streams, we're seeing those questions die down."
Amazon Web Services, which keeps on representing a significant part of the organization's
development, got $6.1 billion in income amid the latest quarter. Amazon's publicizing business,
in the interim, got $2.2 billion for the organization, more than twofold what it completed a year
prior.
[Amazon pairs its benefit — and climbs Prime participation charge 20%]
The organization is likewise venturing into new lines of retail, including perishables,
pharmaceuticals and home innovation, making it a one-stop look for many American family
units. Amazon presently represents almost 50% of the nation's web based spending, as indicated
by eMarketer. (In second place: the bartering website eBay, which directions around 6 percent of
online deals.) The organization's Prime participation program, in the interim, has in excess of
100 million paying clients.
"The normal association among Apple and Amazon is their capacity to inspire us to consider
them consistently — whether through trade or administrations," said Brendan Witcher, an
examiner for statistical surveying firm Forrester. "They are both nearly observed as fundamental
as an utility in some purchaser's lives."

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 Figure No. 4.1

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Q. 1 What are the main reasons you preferred amazon for shopping?
 Table No 4.1
S. No Particulars No. Of Respondents
1 Less price 5
2 Good quality 7
3 Fast delivery 20
4 Standard 12
5 More option 16

Reasons for preferring amazon

8%

27% 12%
Less price
Good quality
Fast delivery
Standard
More option

20% 33%

Figure No 4.2

Interpretation: The majority of the respondent is that, the reason for preferred amazon shopping
is based on the fast delivery of the product to the customers.

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 Chapter 5
CONCLUSION AND FUTURE PROSPECTS
In the past, consumers had sufficient time to visit shopping centers, searching for various
products. Many consumers prefer bargaining and decide the purchases after physical
examination of the commodities.
The entire process can range from a few hours to weeks depending on the product, quantity,
quality and source of purchase. Today there is radical change in the entire scenario. Everything
in today’s world is Internet oriented like Electronic Data Interchange, E-Mail, E-Business and E-
Commerce. E-Commerce is exchange of information using network-based technologies. In the
present high cost situation, e-Commerce can be used as a competitive strategy. It successfully
includes the entire online process of developing, marketing, selling, delivering, servicing and
paying for products and services.
Online shopping is a vast growing technology. If it is properly utilized with assured safety and
security for the transactions, it will thrive into a highly competitive and dynamic environment.
Online shopping is becoming more popular day by day with the increase in the usage of World
Wide Web known as www. Understanding customer’s need for online selling has become
challenge for marketers. Specially understanding the consumer’s attitudes towards online
shopping, making improvement in the factors that influence consumers to shop online and
working on factors that affect consumers to shop online will help marketers to gain the
competitive edge over others.
In conclusion, having access to online shopping has truly revolutionized and influenced our
society as a whole. This use of technology has opened new doors and opportunities that enable
for more convenient lifestyle today. Variety, quick service and reduced prices were three
significant ways in which online shopping influenced people from all over the world. However,
this concept of online shopping led to the possibilities of fraud and privacy conflicts.
Unfortunately, it has shown that it is possible for criminals to manipulate the system and access
personal information. Luckily, today with the latest features of technology, measures are being
taken in order to stop hackers and criminals from inappropriately accessing private databases.

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Through privacy and security policies, website designers are doing their best to put an end to this
unethical practice. By doing so, society will continue to depend upon online shopping, which
will allow it to remain a tremendous success in the future.

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