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ADVANCED MARKETING RESEARCH ON

INCREASING THE MARKET SHARE OF THE


APPAREL SEGMENT OF “AMAZON” AMONG
PREMIUM B-SCHOOL STUDENTS IN INDIA

Submitted to

PROF. SATYABHUSHAN DASH


On 10th September 2014

Submitted by

Group 3

NAINA AGRAWAL (PGP29219)

LOKESH SINGH (PGP29336)

KIRTI R. SAHOO (PGP29188)

NILIMA PISHARODY (PGP29198)

AMAN NARANG (PGP29389)

SHEETAL NINNE (PGP29288)


Contents
Abstract................................................................................................................................................................................... 3
Introduction ............................................................................................................................................................................ 3
Literature review .................................................................................................................................................................... 4
Methodology .......................................................................................................................................................................... 5
Research Design .................................................................................................................................................................. 5
Data Collection Method...................................................................................................................................................... 5
Sampling ............................................................................................................................................................................. 5
Research Objectives, Data analysis and Results ..................................................................................................................... 6
Limitations .............................................................................................................................................................................. 9
Appendix I (Research Framework)........................................................................................................................................ 10
Annexure II (Questionnaire) ................................................................................................................................................. 12
Appendix III (SPSS OUTPUT).................................................................................................................................................. 17
million i.e. 40% of the total funding Indian e-
retailers bagged during the period.
Abstract Apparel e-tailing has experienced significant growth
across the country due to increasing time-poverty,
The following study looks at the players in the Multi-
changing lifestyles, convenience and flexibility of
brand route, Amazon in particular. Since its
shopping from home and option of free home
introduction in India last year, amazon has been
delivery. Factors such as dramatic increase in
trying to vie customers into purchasing apparel from
penetration of IT devices and communication
its site. Customers on the other hand, do not even
solutions, and emergence of exciting new “virtual
know that Amazon offers apparel, much less about
reality” technologies are contributing to the
the variety it offers. Keeping this in mind, a study
expansion of apparel e-tailing. Convenience in
was done on how Amazon.in could increase the
terms of ease and time, information, decision-
market share of its ‘Apparel’ segment among
making, transactions and flexibility has also been
premium B-School students in India. The study
major factors influencing adoption of apparel e-
started with checking consumer’s familiarity with
tailing.
Amazon and its apparel offering. Subsequently, a
comprehensive look was taken on what features The Internet’s ubiquity gives online brands the
were most relied on, by customers, while they shop capability to reach all Indians, even those with no
for apparels online. The study also looked at its access to an online payment facility, as most brands
competitors, and what they were doing. Consumers’ offer Cash-on-Delivery (COD) options, offering them
perception for all cases were taken. The research the luxury of seeing the product before making
methodology required us to conduct a qualitative payment for it. In fact, COD has been a one of the
study, followed by a quantitative validation. The big factors for online retailing to take off in its
results and the inferences drawn from them were second innings in India (first being in the year 2000).
used for making suggestions to Amazon on what it
should actually do to increase its market share Technology has also played a major role in
amongst premium B-School youngsters in India. addressing some key concerns of apparel retailing
on the web. High resolution graphics, streaming
videos of garments donned by models, virtual
Introduction dressing rooms and 360° viewing and zoom tools
have made online shopping an interesting exercise.
With changing demographics and an increase in the Customers can key in their vital measurements to
quality of life of urban people, the Indian retail find the right fit, and can also browse through
sector is poised for a boom. Currently estimated at multiple brands for the perfect dress. Even if
$500 billion, it is forecast to reach $1 trillion in 2020. shopping for apparel online is gaining traction all
However, with 0.1% penetration, the online market across the country, it is the big cities where apparel
presently constitutes only $500 million of the total shopping is most common. Mumbai tops in the
retail market, but is expected to grow 140 times and numbers of online shoppers, followed by
reach $70 billion by 2020, thanks to the demand Ahmedabad and Delhi. And needless to say,
from the so-called Generation Z. youngsters of the age group 19-29 top in the
purchases of apparels online.
E-commerce has brought about a revolution in the
shopping model of India. With over 10 million Indian Given these reasons, apparel e-tailing has started to
consumers shopping online for commodities other boom. In doing so, it has taken three distinct routes:
than electronics, this sector is growing at a great
pace. Just in the last two years, the apparel e- 1. First is the Multi-brand route - Few players
have cashed in on early-bird benefits and
retailing space has attracted investments worth $70
captured a significant online market share. A Literature review
few companies competing with each other
in this domain are: In previous studies, it has been observed that when
a. Myntra.com - an online fashion store
for women and men launched in it comes to online shopping, people have various
2007 predispositions while purchasing. Males usually
b. Limeroad.com - an online portal
consider online shopping as less risky than their
offering apparel, beauty products,
bags, accessories and footwear female counterparts. Generally, women tend to
exclusively to women. view shopping as an enjoyable activity whereas men
c. Amazon.in – The Indian subsidiary of
the U.S. based online store offering a view it more as a chore. This behaviour is not
mish-mash of every products, for reflected in case of online shopping, where men
both men and women
tend to find online shopping as more enjoyable than
d. Flipkart.com – The indian online
store modelled on U.S.’s amazon. women.
2. Second is the Apparel brands going online –
A few competing companies in this domain To measure the attitude of genders towards online
are:
a. Zodiac shopping, cluster analysis was performed followed
b. Madame by regression analysis. As a result of the study, 4
c. Fabindia
distinct clusters could be identified. These clusters
d. Mustard
e. La Senza showed significant differences in terms of
3. Third is the Niche route - Numerous pure- demographic and psychographic characteristics.
play e-tailers are entering into niche
segments to cash in on these untapped The regression results provided information on
categories. A few competing companies in predictive powers of selected variables (i.e. age,
this domain are:
gender, impulsiveness, variety-seeking tendency,
a. Strapsandstrings.com - India’s first
online lingerie shopping boutique, price sensitivity, and risk consciousness) for
offering Indian women the different segments. In another study, primarily
opportunity to shop for international
lingerie brands like Lise Charmel, focusing on age, it was found that older people are
Chantelle, Mimi Holliday and generally uncomfortable in using internet as a
Cosabella
medium for their shopping requirements. The
b. BabyOye.com, Hushbabies.com -
Baby products (including apparel) younger populace tended to be more open and risk-
focused ventures taking while making their purchases online. (Lian, J.
W. & Yen, D. C, 2014) suggest that the older
generation1 viewed e-commerce websites as “non-
traditional”. Hence, they were less accepting to
make online purchases than younger generation.

1Lian, J. W. & Yen, D. C. Online shopping drivers and barriers for older
adults: Age and gender differences, Computers in Human Behaviour,
Page 133-143
(Herna´ndez, B., Jime´nez, J. & Martı´n, M, 2010) appeared to be more trusting of the online website.
suggest that various socio-economic variables such Women did not perceive the site to be as well
as age, gender and income2 do not really moderate organized as men did. Women were less satisfied
online shopping behavior. In other words, they do w.r.t degree of interaction with website and the
not condition the behaviour of the experienced usefulness of animations. They also perceived more
shopper. While making a high value purchase such risk to buying online both in terms of probability and
as electronic items, consumers first tend to look up in terms of likelihood. They perceive more severe
the product specifications and reviews online. consequences to privacy than men. However,
Thereafter, their buying channel might be online or women didn’t perceive a higher probability of loss
a brick and mortar store. To an extent, utilitarian of privacy than men. Recommendations from
and hedonic shopping values have positive effects friends strongly influenced women to buy online but
on consumer online purchase behavior. These had no significant effect on men. Larger reduction in
values and effects are more significant for men than perceived risk after receiving recommendations
women. from friends among women than among men.

(Handa M, 2009) while analysing the buying


Methodology
patterns of youth found that gender differences
towards online shopping are negligible. Both
Research Design
The research follows a conclusive research design as
genders are innovative in general in the sense that the information needed is clearly defined to test
they like to take a chance and try new things3. hypotheses and analyse relationships. Also a formal
Mostly they go for shopping with some specific need and structured process is followed. The research is
descriptive and cross sectional design is followed.
in their minds. They usually try new brands and
share their experience with friends but are very Data Collection Method
The target population is the students in premium
much cautious about non popular or un-established
business schools in India between the ages of 21-28.
brands. They may take a chance on less expensive The sampling unit was a single student in these
items but usually rely on others’ opinions for untried colleges. Only those people who shopped online
(apparels or something else) were considered for
products. Both males and females have equal open
this study. Those students who refrained from
processing innovativeness. shopping online completely were not a part of the
study.
(Nemeth P, 2010) While studying the perceptions of
Sampling
different genders vis-à-vis perceptions to online The sample size of the quantitative study was 100
buying4, it was found that both genders are equally students across 5 premium B-Schools of India. The
comfortable making online transactions. Men questionnaires were administered in English for the
students. 2 Focus Group Discussions were

2 Herna´ndez, B., Jime´nez, J. & Martı´n, M. (2010) Age, Gender and 3 Handa M. , 2009, Gender Influence On The Innovativeness Of Young
income: Do they really moderate online shopping behaviour? Urban Indian Online Shoppers
4 Nemeth P, 2010, Gender differences in internet using habits
conducted with 8 participants each. Participants of
focus group discussion are IIM Lucknow students.
After FGD’s depth interview were conducted with 9
people. Initial insights were gathered as inputs for
quantitative research.

IIM Lucknow students of different ages and varying


educational backgrounds (Engineering, Commerce
etc.) were used for the qualitative research. The
responses were collected primarily to understand
their online apparel purchase behaviour. The same
has been taken care of in data collection sample
selection process.

According to the above diagram it can be inferred


that the results are significant.
Research Objectives, Data analysis and Results Consumers buy the apparels online more when they
are assured that they can easily get the money back
Research Objective R1: What criteria do consumers in case of dissatisfaction.
use when deciding to choose an online apparel
store? Consumers are more interested to know about how
the apparel is in fashion rather than its material,
texture, other objective features

Hypothesis Managerial Implication


R1-H1: Return policies which refund money to bank
If promotion strategy is directed towards the
account are important criteria for heavy apparel
fashion recommendation and assurance that their
buyers R1-H2: More number of certified buyer
money will be credited back into the bank account
reviews are an important criteria when deciding an
then the Amazon will attract more customer
online apparel store for light users.
towards its apparel section.
R1-H3: Detailed apparel information is an important
criteria when deciding an online apparel store for Research Objective R2: What will the nature of
heavy users appeal and mode of communication for potential
R1-H4: Websites which give fashion advice & trend and existing customers for increasing usages of
information are more preferred by heavy buyers AMAZON.

We then tested if these two were important for Hypothesis


heavy buyers indeed. R2-H1: Email communication is ineffective if emails
are sent more than once a week for heavy users

Data Analysis: Correspondence Analysis was used R2-H2: Ads having discount information are more
effective than ads having product information
Checked at Confidence Level = 90%
Data Analysis: One-way ANOVA analysis is used
Dependent Variable = Effectiveness of We asked the respondents to mark the 11 features
Advertisement against the brand(s) which relates most with that
feature so that we could cross tabulate the results
Independent Variable = Frequency of e-mails sent
and map it on a perceptual map based on
correspondence analysis. Leading 5 websites had to
Model Summary
be marked against 11 features.

Correspondence Analysis is used for the analysis.

The dimensions explained a healthy 30% of


variance. Understanding local needs explained
24.9% of variance of the Dimension 1 and Fashion
advice explained 51.6% variance of Dimension 2.

As seen in the map, Amazon is the farthest from the


The critical value of F-statistics with F(3,96) = 2.5 feature of trendy clothes. That trendy clothes
and the output is much less than the critical value. feature appears on away from the origin,
establishes that it is a differentiated attribute on
There is no difference in the means of the frequency
which Myntra and Flipkart score the best followed
of emails sent. by Limeroad.

Managerial Implication Amazon is farthest from the variety feature. It


shows that the qualitative research insight was true,
Mails are mostly put in the SPAM or JUNK folder and people do not think Amazon has great variety of
thus do not reach the audience as intended. So no apparels. This has been shown in the map.

matter how many mails are sent they all end up


being unattended.

The Amazon should classify the current user into


three categories as heavy, medium and light. The
heavy user should be sent email which contains
more product information and less discount
information the reverse is true for the light users
and an equal mix is recommended for the medium
users. The frequency of emails should not be more
than once or twice a week.

Research Objective-R3: How do consumers


evaluate AMAZON and COMPETETORS on the
factors of the choice criteria?

Hypothesis
R3-H1: Amazon is not perceived as apparel seller
having trendy clothes as compared to other
competitors
R3-H2: Amazon is considered to have less variety of
apparels than competitors
Managerial Implications

 Amazon should positioned the apparel Managerial Implication


section as a trendy and full of variety and  Seller information is an important aspect for
should sell fashion and not just the clothes.
 To increase the customer loyalty Amazon an apparel selling website and irrespective
should increase the variety in all the apparel of user or non-user this information should
section.
Also, Perceptual Map is formed for this technique. be mentioned in detail.
As can be seen in Appendix III.  Amazon should provide a credible seller

Results: information on their website and if should


• 3 dimension are taken as all have Eigen value include a detail review for each seller from
greater than 1.
• Amazon is not perceived as apparel seller the user who have bought them in the past.
having trendy clothes. Hence hypothesis H1
is accepted.
• Amazon is considered to have less variety Research Objective R5 and R6: What is the
than competitors. demographic, psychographic and usage
• Competitors like Flipkart is perceived high on
attributes like Security, Fast delivery, Variety characteristics profile of consumers who are loyal
and Trustworthiness to AMAZON and not Loyal to Amazon?
• Myntra is perceived to be the website for
more fashion conscious consumers
Amazon should include more variety and fashion Hypothesis
advice in the apparel section in order to compete
with Myntra and Flipkart R5-H1: People who are indifferent to opinion of
friends are more loyal to Amazon.
R6-H2: People who seek variety in apparels are not
Research Objective R4: What is consumers’ loyal to Amazon
awareness and understanding of the amazon as an Questionnaire and Data analysis tool
e-commerce portal Cluster analysis is used to identify tangible
Hypothesis segments based on psychographic and demographic
R4-H1: Amazon is seen as an international website, characteristics. For psychographic characteristics
not having India focused products indirect questions were used to rate their
R4-H2: Amazon as a brand is considered as characteristics.
trustworthy for shopping online Data Analysis
R4-H3: User and Non User of Amazon don’t differ in Cluster Analysis Results and Detailed Analysis is
their believe that seller information provides shown in Appendix III
reliability for the apparel

Conclusion
Data analysis tool Cluster 1 hints towards the fact that majority of
Correspondence Analysis is used for H1 and H2 and people in cluster 1 are high on “Fashion
2 sample t-test was used for H3. The 2 sample table Consciousness”. Similarly Cluster 2 people
can be found in Appendix III. represent people who are “Brand Loyal”, Cluster 3
represent “Advice Seekers” and Cluster 4 represent From the conjoint analysis it can be concluded that
“Extroverts”. Filter and Website Look and feel are more important
than product information. Furthermore, from the
Managerial Implication median preference part-worth, it can be said that
Now if we look at Cluster 1 which is the Fashion Brand filter is indeed more important than price
conscious people we can see that the intention to filter and vibrant colours in website were indeed
buy from Amazon is the lowest. more important when it came to site selection.
Therefore, people having an intention to buy from
Amazon in the future follow a significant portion of Managerial Implication
the cluster who have the following characteristics The Amazon should include a variety of the filters in
are: their website. Since apparel consumer are highly
 Follow latest Fashion trends price sensitive so new innovative filters like discount
 Like dressing smartly filters and colour filters are a very good option.
 Like reading fashion magazines

Research Objective R7: What is consumers’ Limitations


awareness and understanding of the amazon as an
1. Respondents for whom clothes is a low
apparel selling e-commerce portal involvement product may not be interested in
Hypothesis filling the survey, so we might not have got
accurate responses.
R7-H1: Brand Filter is more important than Price
filter when considering an online apparel store 2. It was observed that the awareness of Amazon
R7-H2: Vibrant Colors in website look in apparel as an online clothes seller was low among the
respondents so for certain questions they were
segment is an important criteria for shopping online
marking “neutral” as responses. This might have
apparels brought in some discrepancies in the analysis.
Data analysis
3. Users of Amazon were very limited in numbers.
 Conjoint analysis is done to study the right
4. The limitations of the research included the
combination of different types of filters and small sample sizes, and data collected from B-
colour appeal of the website School students only. Larger sample size will help
 The detailed result of the conjoint analysis is increase the generalizability of the research
findings.
shown in appendix III
Conclusion
Appendix I (Research Framework)

MRP, Hypotheses, Questions and Data Analysis Tool

Data Analysis Result


Research objective Hypothesis Question No.
Tool Obtained
R1. What criteria H1: Return policies which
do consumers use refund money to bank account Correspondence
Q4,Q7 Accepted
when deciding to are important criteria for Analysis
choose an online heavy apparel buyers
apparel store? H2: More number of certified
buyer reviews are an
Correspondence
important criteria when Q4,Q7 Accepted
Analysis
deciding an online apparel
store for light users
H3: Detailed apparel
information is an important
Correspondence
criteria when deciding an Q4,Q7 Rejected
Analysis
online apparel store for heavy
users
H4: Websites which give
fashion advice & trend Correspondence
Q4,Q7 Accepted
information are more Analysis
preferred by heavy buyers
R2. What will the H1: Email communication is
nature of appeal ineffective if emails are sent
Q6, Q9 One way ANOVA Accepted
and mode of more than once a week for
communication heavy users
for potential and
H2: Ads having discount
existing
information are more effective
customers for Q.10 One way ANOVA Rejected
than ads having product
increasing usages
information
of AMAZON
R3: How do H1: Amazon is not perceived
consumers as apparel seller having trendy
Accepted
evaluate clothes as compared to other Correspondence
AMAZON and competitors analysis,
Q.7., Q.11,
COMPETETORS Perceptual Map
Q.12
on the factors of H2: Amazon is considered to and Preference
the choice have less variety of apparels Map Accepted
criteria? than competitors

R4. What is H1: Amazon is seen as an


consumers’ Correspondence
international website, not Q.7 Accepted
awareness and analysis
having India focused products
understanding of H2: Amazon as a brand is
the amazon as an e- considered as trustworthy for Accepted
commerce portal shopping online
H3: User and Non User of
Amazon differ in their believe
that seller information Q5,Q8 2 sample t-test Accepted
provides reliability for the
apparel
R5. What is the
demographic,
psychographic and
usage H1: People who are indifferent
Q1, Q2,Q3
characteristics to opinion of friends are more Cluster Analysis Accepted
Q13,Q14
profile of loyal to Amazon
consumers who are
loyal to AMAZON
R6. What is the
demographic,
psychographic and
product usage
characteristics H2: People who seek variety in
Q1,Q2,Q3,
profile of apparel are not loyal to Cluster Analysis Accepted
Q13,Q14
consumers who are amazon
not loyal to
AMAZON

H1: Brand Filter is more


R7 What is important than Price filter
consumers’ Accepted
when considering an online
awareness and apparel store
understanding of Q15 Conjoint analysis
H2: Vibrant Colours in website
the amazon as an
look in apparel segment is an
apparel selling e- Accepted
important criteria for shopping
commerce portal?
online apparels
Annexure II (Questionnaire)

Q1. Gender?

a. Male
b. Female

Q2. Which of the following age groups do you belong to?


a. below 20
b. 20 – 25
c. 25 – 30
d. greater than 30

Q3. Kindly indicate your annual family income:


a. less than 2 lakhs
b. 2 to 4 lakhs
c. 4 to 8 lakhs
d. more than 8 lakhs

Q4. Please select your frequency of buying apparel online:

a. Do not Buy
b. Once a month
c. Twice a month
d. More than twice a month

Q5. Please indicate from which online stores you have brought apparel in the past (multiple choice)

Online Store
Amazon
Flipkart
Myntra
Trendin
Lime Road

Please indicate from which online stores you plan to buy apparel from in the future (multiple
choice)

Online Store
Amazon
Flipkart
Myntra
Trendin
Lime Road
Q.6 Please indicate the frequency of email ads received by you for buying apparels online?

a. Once week
b. twice a week
c. thrice a week
d. more than 3 times a week

Q7. Please tick feature(s) closely associated with following models of Bike
website/ Amazon Flipkart Myntra Trendin LimeRoad
features
Return Policy
Certified
Buyer Review
Detailed
Information
Fashion
Advice
Security
Fast delivery
Variety
Discounts
Trendy
clothes
Understands
Local Tastes
Trustworthy

Q8. Indicate your agreement with the following statements. Which of the following factors is most
important for reliability of an online apparel store? (multiple allowed)

Strongly
Statement Strongly
Disagree Neutral Agree Agree
Disagree

Brand Name

Seller Information( Name, Contact


details, Address of seller)

Online reviews about that store


Return/ exchange policies

Q9. Indicate your agreement with the following statements:

Strongly
Statement Strongly
Disagree Neutral Agree Agree
Disagree

Emails influence my decision to buy


apparels online

Q.10 Rate which kind of ads influences your “purchase decision” to buy apparels online

Strongly
Statement Strongly
Disagree Neutral Agree Agree
Disagree

Ads with discount information

Ads which have product related


information

Q.11 Please rate your preference for the following brand on a scale of 1-5

website/ Amazon Flipkart Myntra Trendin LimeRoad


Personality
Traits
Return Policy
Certified Buyer
Review
Detailed
Information
Fashion Advice
Security
Fast delivery
Variety
Discounts
Trendy clothes
Understands
Local Tastes
Trustworthy

Q.12 Please rate your preference for the following brand on a scale of 1-5(1 being not preferred and 5
being highly preferred)
Not all Preferred Somewhat Not Neutral Somewhat Very Much
Preferred Preferred Preferred

Amazon

Flipkart

Myntra

Trendin

LimeRoad

Q13. Please rate your intensions to buy apparel from Amazon


Not all Somewhat Neutral Somewhat Very Much
Preferred Not Preferred Preferred
Preferred

Q14. Please rate followings

Please indicate your degree of agreement to following


2. Somewhat

4. Somewhat
statements which is close to your personality by checking the
1. Strongly

5. Strongly
3. Neutral
Disagree

Disagree

Agree

Agree
most appropriate.

I follow latest trends and fashions 1 2 3 4 5


When I must choose between the two I usually dress for 1 2 3 4 5
fashion, not for comfort
An important part of my life and activities is dressing smartly 1 2 3 4 5
I am loyal towards my preferred Brand of Apparels 1 2 3 4 5
I often seek out the advice of my friends regarding which 1 2 3 4 5
Apparels to purchase
I always preferred to be in crowd and parties 1 2 3 4 5
I feel Suffocated whenever I am kept for a long time in small 1 2 3 4 5
groups and quiet
I often try new brands of clothes before my friend and 1 2 3 4 5
neighbours do
I always like to try new and different products 1 2 3 4 5
I play sports regularly 1 2 3 4 5
I like to keep to myself while working 1 2 3 4 5
I eat my lunch alone 1 2 3 4 5
I like reading fashion magazines 1 2 3 4 5
I like a lot of variety in my life 1 2 3 4 5
I find myself checking the prices in the grocery store even for 1 2 3 4 5
small items
Selecting my wardrobe is one of my favourite activities 1 2 3 4 5
I would rather spend my money on clothes than on anything 1 2 3 4 5
else
An important goal is to find brands that communicate 1 2 3 4 5
uniqueness

Q15. How do you prefer to buy the following alternative combination of website features for
navigating Amazon apparel website?

Please rate your preference (1-Least Preferred; 10-Most Preferred)

Filter Website look and feel Product Information Rating


(1-10)
Colour filter Vibrant colours on website Fabric type displayed
Brand filter Vibrant colours Fabric type displayed
Price Vibrant colours Fabric type displayed
Size Vibrant colours Fabric type displayed
Colour Vibrant colours Seller Name displayed
Brand Vibrant colours Seller Name displayed
Price Vibrant colours Seller Name displayed
Size Vibrant colours Seller Name displayed
Colour Single tone colours Fabric type displayed
Brand Single tone colours Fabric type displayed
Price Single tone colours Fabric type displayed
Size Single tone colours Fabric type displayed
Colour Single tone colours Seller Name displayed
Brand Single tone colours Seller Name displayed
Price Single tone colours Seller Name displayed
Size Single tone colours Seller Name displayed
Appendix III (SPSS OUTPUT)

R1-H1: Websites which give fashion advice & trend information are more preferred by heavy buyers

R1-H2: Return policies which refund money to bank account are important criteria for heavy apparel buyers

Correspondence Analysis

Overview Column Pointsa

Feature Mass Score in Inertia Contribution


Dimension

1 2 Of Point to Inertia of Of Dimension to Inertia


Dimension of Point

1 2 1 2 Total

Return Policy .188 -.322 .694 .084 .033 .366 .140 .591 .731

Certified Buyer
.106 .423 -.802 .058 .032 .125 .198 .648 .845
Review

Detailed
.047 .731 -.945 .041 .042 .077 .366 .558 .924
Information

Fashion Advice .106 -1.111 -1.052 .149 .518 .015 .526 .430 .956

Security .071 .989 .060 .067 .115 .000 .621 .002 .623

Fast delivery .059 1.010 -.109 .047 .100 .001 .764 .008 .773

Variety .094 -.998 -.379 .068 .156 .025 .830 .110 .939

Discounts .047 -.131 1.218 .041 .001 .128 .012 .927 .939

Trendy clothes .106 .126 1.097 .084 .003 .033 .012 .833 .845

Understands Local
.082 -.702 .145 .044 .068 .003 .557 .022 .578
Tastes

Trustworthy .094 1.215 -.396 .126 .232 .027 .658 .064 .722

Active Total 1.000 .808 1.000 1.000

a. Symmetrical normalization
R3-H1: Amazon is not perceived as apparel seller having trendy clothes as compared to other competitors

Perceptual Map

Positioning Map (Dim I-II)

Fashionable
Trendy clothes
Fashion Advice
Variety
Myntra

Fast delivery
Dependable

LimeRoad

Security
I (52.2%) Trendin
Discounts
Return Policy
Certified Buyer Review
Trustworthyness

Flipkart
Understands Local
Amazon Tastes Detailed Information
II (31.7%)
Positioning Map (Dim I-III)

Information Centric

Detailed Information
Amazon

LimeRoad
Fashion
MyntraAdvice
Certified Buyer Review
Dependable

Variety Discounts
I (52.2%)
Security
Return Policy
Trendy clothes Trustworthyness
Fast delivery
Flipkart
Understands Local
Tastes
Trendin
III (10.3%)

Diagnostics:
Preference Map

Positioning Map (Dim II-III)


LimeRoad

Trendin
Flipkart
II Myntra

Market Share =
Amazon
III
R4-H3: User and Non User of Amazon don’t differ in their belief that seller information provides reliability for the
apparel

2 Sample t-test

2 sample T test was used to test if the means of both the groups- users and non- users were equal. Which would mean
that there is no significant difference in their perception about importance of seller information.

Cluster Analysis:

R5-H1: People who are indifferent to opinion of friends are more loyal to Amazon

R6-H2: People who seek variety in apparels are not loyal to Amazon

QUANTITATIVE TECHNIQUE USED: Cluster Analysis

Steps followed:

1. Check no. of clusters to be formed by doing hierarchical clustering and checking the Dendogram Plot

Result: 4 Clusters

2. Run using 4 clusters & Discriminant variables & check segmentation variables to find out which variables explain each
cluster

Result: Fashion Conscious, Brand Loyal, Advice Seekers, Extrovert

3. Interpret results using the output


Segmentation Variables
Means of each segmentation variable for each segment.
Fashion Brand Advice
Segmentation variable / Cluster Overall Extrovert
Conscious Loyal Seekers
Intention to buy Apparel from Amazon 2.94 2.73 3.18 3.32 2.88
I follow latest trends and fashions 2.97 3.29 2.53 2.79 2.69
When I must choose between the two I
2.91 3.1 3.88 1.58 2.88
usually dress for fashion, not for comfort
An important part of my life and activities is
2.98 3.67 2.24 1.95 2.94
dressing smartly
I am loyal towards my preferred Brand of
2.94 2.79 3.47 3.21 2.5
Apparels
I often seek out the advice of my friends
2.96 2.69 3.24 4 2.25
regarding which Apparels to purchase
I always preferred to be in crowd and
2.95 3.27 2.71 2.26 3.06
parties
I feel Suffocated whenever I am kept for a
2.9 2 3.59 3.16 4.56
long time in small groups and quiet
I often try new brands of clothes before my
2.77 3.12 2.53 2.79 1.94
friend and neighbours do
I always like to try new and different
3.22 3.4 3.94 2.11 3.25
products
I play sports regularly 2.77 2.79 2.18 2.95 3.12
I like to keep to myself while working 2.94 2.81 2.29 4.11 2.62
I eat my lunch alone 2.89 3.12 2.35 2.63 3.06
I like reading fashion magazines 2.99 3.33 2.65 2.79 2.56
I like a lot of variety in my life 3.22 3.23 2.71 3.32 3.62
I find myself checking the prices in the
2.99 3.42 1.65 2.21 4.06
grocery store even for small items
Selecting my wardrobe is one of my
3.07 2.94 3 3 3.62
favourite activities
I would rather spend my money on clothes
3.09 3.48 3.18 2.53 2.5
than on anything else
An important goal is to find brands that
3.03 3.04 3.41 3 2.62
communicate uniqueness

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