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Consumer preferences on online marketing with reference to flipkart

CHAPTER I:

INTRODUCTION

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INTRODUCTION

India has an internet user base of about 354 million as of June 2015. Despite
being third largest user base in world, the penetration of e-commerce is low compared to
markets like the United States, United Kingdom or France but is growing much faster,
adding around 6 million new entrants every month. The industry consensus is that
growth is at an inflection point. In India, cash on delivery is the most preferred payment
method, accumulating 75% of the e-retail activities Demand for international consumer
products (including long-tail items) is growing much faster than in-country supply from
authorized distributors and e-commerce offerings.

Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and


Binny Bansal. It is a Singaporean company which operates in India, where it is head
quartered in Bangalore, Karnataka. Flipkart has launched its own product range under
the name ‘DigiFlip’ with products including tablets, USBs, and laptop bags. Flipkart
allows payment methods such as cash and delivery, credit or debit card transactions, e-
gift voucher and cards swipe on delivery. Initially, they had spent ₹ 400,000 only for
making website to set up the business. Flipkart has later raised funding from venture
capital funds Accel India (US$1 million in 2009) and Tiger Global (US$10 million in
2010 and US$20 million in June 2011).

On 6 October 2014 Flipkart launched a promotion called 'Big Billion Day' with
the intention to increase the popularity of their website by targeting a billion sales in 1
day. This, even though Flipkart achieved the target, led to public outcry and widespread
criticism among consumers, competitors and partners, heavily damaging its reputation.
Many users could not place orders because of high server load and errors which led to
frustration among customers. Many users who placed orders received emails stating that
their orders were cancelled. Most of the products were sold for less than cost price, and
Flipkart was accused of killing competition. Major competitors filed complaints against
Flipkart to the commerce ministry, claiming that selling products lesser than cost prices
is against the commerce policy of the country. The Ministry said that they would
formulate new trade rules for electronic retail after this incident.

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In September 2015, Sachin Bansal and Binny Bansal entered Forbes India Rich List
debuting at the 86th position with a net worth of $1.3 billion each.

 Co-Founder of Flipkart, Sachin Bansal, got Entrepreneur of the Year Award


2012-2013 from Economic Times, leading Indian Economic Daily.
 Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India
Business Leader Awards 2012' (IBLA).

 Flipkart.com- got Nominated for India MART Leaders of Tomorrow Awards


2011

SIGNIFICANCE OF THE STUDY

India's e-commerce market was worth about $3.8 billion in 2009, it went up to
$12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About
70% of India's e-commerce market is travel related. According to Google India, there
were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million
mark by end of year 2016. CAGR vis-à-vis a global growth rate of 8–10%. Electronics
and Apparel are the biggest categories in terms of sales.

The latest risers among the e-commerce sectors are E-Grocery & E-Dining, with
players like Bigbasket (2011), Grofers (2013), Zopnow (2011) etc. already securing
multiple rounds of investment and expanding their coverage to many other cities other
than their point of origin, E-Grocery is set to grow rapidly whether they follow the hyper
local model or inventory based model. Bigbasket reached a valuation of US $ 1 Billion
in their latest round of funding in August 2015. In case of E-dining, Zomato has already
gone international and is strengthening its core proposition of facilitating and enhancing
consumers' dining experience to newer levels.

STATEMENT OF THE PROBLEM

Internet is the backbone of e-commerce. Unfortunately, internet penetration in India


is so far dismally low at 0.5 per cent of the population. Other big challenge associated
with e-commerce market is the near absence of cyber laws to regulate transactions on the
Net. There is no protection offered either by Website or outside watchdogs against
hazard created by exploiting one’s privacy. Digital illiteracy is one of the formidable
problems e-commerce is facing in India. On the other hand, the continuous exodus of
skilled computer engineers to other countries has denuded India of software engineers.
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STUDY OBJECTIVES

The specific objectives of the study will be:-

 To evaluate factors that attracts consumer to buy online.


 To know customer preferences regarding online purchase.
 To rate overall online shopping experience.

METHODOLOGY AND DATA COLLECTION

SCOPE OF STUDY

The study is conducted in Angamaly. The study attempts to analyze e-commence market
in India with special reference to flipkart.

SAMPLING METHOD

It can be defined as the process of selection of individuals from total population for the
purpose of studying the research problem.

TOOLS FOR ANALYSIS

The collected data are analyzed using tables, graphs and pie charts.

CHAPTERISATION

The scheme of the project will be presented in the following chapters:

1. Introduction.
2. Review of literature (theoretical framework).
3. Analysis and interpretation.
4. Findings, suggestions and conclusion.

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LIMITATIONS OF STUDY

 The shortage of time and money will limit the number of samples into minimum.
 The consumers of the services provided by flipkart are spread all over world, but
this study is conducted only among the consumers of Angamaly.
 Lack of availability of data.
 The time available for study is less.

REFERENCE

 www.wikipedia.com
 www.google.com

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CHAPTER II:
REVIEW OF
LITERATURE

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Sohn and Ahn (1999) showed that consumers’ knowledge affects their
adoption of e-commerce. Liang and Huang (1998) Found that customer’s experience an
important factor in online purchasing. Kim and Kwon (1999) contended that a consumer
whose lifestyle is more progressive and assertive in leisure activities use the internet
more frequently and searches information through the internet more often. Limayem,
Khalifa (2003) added personal innovativeness as another personal characteristic in order
to online shopping. Yang and Cho (1999) examined the impact of consumers need for
cognition, and search objectives on consumer information search through the internet.
Investing in consumer satisfaction from the online experience and creating brand or site
loyalty are critically important for companies that want to have a long run presence on
the Web. There are two approaches taken to induce loyalty into consumers in an online
context. One approach is to focus on concrete factors. For example, creating a
convenient and well-designed online store and offering secure transactions are the
keystones of satisfying e-consumers (Szymanski and Hise, 2000). However, all satisfied
consumers do not become loyal. Personalization attempts and increasing the social value
of online experiences are very important to make consumers build strong brand
relationships in the cyber world. Although Nunes and Kambil (2001) argue the opposite,
some studies find that personalized Web sites and customer communities are highly
influential on the consumer brand relationship especially for experienced Internet
consumers (Thorbjornsen, 2002). Besides, businesses that can create trust and increase
the perceived value of online shopping can turn their satisfied consumers into loyal ones
in the e-marketing environment, too (Anderson and Srinivasan,(2003). The online
environment accommodates so many opportunities for creating loyalty that even offline
offerings can be effectively facilitated with supporting after sale services provided
through the Web (van Riel et al., 2004).

The strategies that marketers are using have not adequately addressed the
changing demands of the consumer to ensure customer satisfaction (Day & Landon,
1977). The marketing function limits the scope of marketing strategies in operating
successfully online. New electronic communication marketing variables have exploded
the alternatives available to customers globally. These changes have redefined many of
the old views of marketing, trade and power. Furthermore, many researchers recognize
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and accept that customer satisfaction is a logical measurement of success in market


exchanges (Dubrovski, 2001). Adrita Goswami (2013). Studied “Customer Satisfaction
towards Online Shopping with Special Reference to Teenage Group of Jorhat Town”
study concludes that online customers are Satisfied. This research explicitly indicates
that online marketer should give more importance on price factor and after sale factor. In
this competition era all the online marketers should have to concentrate on the
customer’s satisfaction to retain the existing customers and have to offer new scheme
day by day to attract the new customers. Alam and Yasim (2010) reported that that
website design, reliability, product variety and delivery performances are the four key
factors influencing consumers’ satisfaction of online shopping. Ahn (2004); Lee and
Joshi (2007); found that delivery performance has significant influence on customer
satisfaction. Vyas and Srinivas (2002), in their paper stated that majority of the internet
users were having positive attitude towards online buying of products/services. There
exists a need for developing awareness about consumers’ rights and cyber laws. They
also emphasized on better distribution system for online products. Crawford, (1997) in
his paper said that traditional consumer behaviour shopping has its own model, which
the buying process starts from the problem recognition, information search, evaluation of
alternatives, then purchase, and at last post purchase behaviour. The lists of factors
having a positive or negative impact on consumers’ propensity to shop do not seem to be
very different from the considerations encountered in offline environments. However,
the sensitivities individuals display for each variable might be very different in online
marketplaces. Factors like price sensitivity, importance attributed to brands or the choice
sets considered in online and offline environments can be significantly different from
each other (Andrews and Currim, 2004).Uncertainties about products and shopping
processes, trustworthiness of the online seller, or the convenience and economic utility
they wish to derive from electronic shopping determine the costs versus the benefits of
this environment for consumers. Further studies aiming to complete the full set of factors
influencing consumers’ repurchase intentions are still much awaited. Chary and
Christopher (2003) stated that e-commerce is today providing the infrastructure to
communicate and share information between the buyers and sellers. But the main
drawback in India is that most of the Indian consumers are from the rural, backward
areas and they are not aware of the electronic transactions. Also in the urban areas most
of the consumers are not aware of this. So, in the light of these facts which constitute the
emotional factors, can we think that e-commerce in India is going to affect the beliefs,

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values, culture, preferences and fashions of the consumers? The major challenges are
technology component, internet infrastructure and payment related issues. The answer to
the challenges posed by the Indian market essentially lies in cyber retail networks
(networks of retail outlets on the net) connected through the very small aperture
terminals (VSATs). The three big advantages of e-commerce-vast choice, economy in
transactions and a wealth of information tend to set the mind of consumer to move into
electronic market and so the excitement of e-commerce will be building up away from
the metros moving towards rural India.

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CHAPTER III:

INDUSTRY PROFILE

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HISTORY OF E-COMMERCE

One of the most popular activities on the Web is shopping. It has much allure in it
one can shop at your leisure anytime. Literally anyone can have their pages built to
display their specific goods and services.

History of ecommerce dates back to the invention of the very old notion of "sell and
buy", electricity, cables, computers, modems, and the Internet. Ecommerce became
possible in 1991 when the Internet was opened to commercial use. Since that date
thousands of businesses have taken up residence at web sites.

At first, the term ecommerce meant the process of execution of commercial


transactions electronically with the help of the leading technologies such as Electronic
Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity
for users to exchange business information and do electronic transactions. The ability to
use these technologies appeared in the late 1970s and allowed business companies and
organizations to send commercial documentation electronically.

Although the Internet began to advance in popularity among the general public in
1994, it took approximately four years to develop the security protocols (for example,
HTTP) and DSL which allowed rapid access and a persistent connection to the Internet.
In 2000 a great number of business companies in the United States and Western Europe
represented their services in the World Wide Web. At this time the meaning of the word
ecommerce was changed. People began to define the term ecommerce as the process of
purchasing of available goods and services over the Internet using secure connections
and electronic payment services. Although the dot-com collapse in 2000 led to
unfortunate results and many of ecommerce companies disappeared, the "brick and
mortar" retailers recognized the advantages of electronic commerce and began to add
such capabilities to their web sites (e.g., after the online grocery store Webvan came to
ruin, two supermarket chains, Albertsons and Safeway, began to use ecommerce to
enable their customers to buy groceries online). By the end of 2001, the largest form of
ecommerce, Business-to-Business (B2B) model, had around $700 billion in transactions.

Ecommerce has a great deal of advantages over "brick and mortar" stores and mail
order catalogs. Consumers can easily search through a large database of products and
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services. They can see actual prices, build an order over several days and email it as a
"wish list" hoping that someone will pay for their selected goods. Customers can
compare prices with a click of the mouse and buy the selected product at best prices.

Online vendors, in their turn, also get distinct advantages. The web and its
search engines provide a way to be found by customers without expensive advertising
campaign. Even small online shops can reach global markets. Web technology also
allows to track customer preferences and to deliver individually-tailored marketing.

COMPONENTS OF E-COMMERCE

Some essential must haves to make your shop a success.

1. GOOD EXPERIENCE FOR MOBILE SHOPPERS

In 2013, 55% of people purchased from mobile devices rather than from PCs and
laptops, so ensuring that your ecommerce website is mobile friendly is a must. Mobile’s
increasing market share means that online shop should have a mobile first strategy to
ensure getting conversions no matter what device.

2. EASY CHECKOUT PROCESS

The biggest conversion killer for online store is potentially checkout process. One could
easily be losing up to 67% of customers if checkout is poorly planned or designed.

Striking a balance between good functionality, usability and building trust are key to
offering a good checkout experience.

3. GUEST SIGN UPS

Laborious registration forms can increase the likelihood of customers abandoning a


purchase at checkout so give customers the option to checkout as a guest rather than
register an account. Online shoppers are keen to make their purchases quickly and can
easily be distracted, so help them achieve their goal by giving them a quicker option to
check out as a guest.

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4. GOOD QUALITY PRODUCT PHOTOGRAPHY

Product photography could be the single most important aspect of ecommerce site. This
is what helps user get ‘buy in’ and is often the first experience of product.

5. HAVE A CLEAR RETURNS POLICY

The first part of a good returns policy is to try to prevent the return. People return their
products when they’re disappointed so write clear and accurate product descriptions.

6. DETAILED PRODUCT DESCRIPTIONS

Clear and accurate descriptions about products are important to help buyers make the
decision to purchase. Descriptions act like store’s sales staff so it needs to be informative
and the right tone for target. Include an FAQ’s section too to help alleviate any doubts
about products.

7. CLEAR DESIGN & INTUITIVE NAVIGATION

Get clear about shop categories and how online store is structured. Poorly structured sites
don’t perform well and struggle to convert. The goal is to make it easy for customers to
find what they’re looking for.

PRESENT STATUS OF E-COMMERCE

India has joined the bandwagon and the numbers themselves do all the talking.
The latest statistics reveal that India has been reported to have 70 million active Internet
users, the count rising exponentially by the minute. However, markets involve intricate
interactions involving a variety of business/organizational factors, general economic and
social trends. And the actual scope of growth in e-commerce can’t be evaluated without

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taking into consideration the aforementioned factors. For such doubts to be remedied,
one may take notice of the recent industry reports. One such report, shared by
ASSOCHAM, estimated the online retail industry to touch Rs 7,000 crore by 2015
(rising from the current Rs 2000 crore), with an annual growth rate of 35 per cent.
Adding on to this, IAMI has facilitated data to indicate a zoom in India’s e-commerce
sector, with transactions rising 50 per cent annually. Online retailing or e-tailing, which
accounts for about 6 per cent of Rs 46,000 crore industry, has taken the forefront of this
rapid growth.

Such strong current indications to massive changes, occurring across the entire
business spectrum, have already wiped out doubts about the scope of e-commerce in
India. The expense of the tremendous ambit for the growth of Internet marketing in India
being clear now, it can conveniently be stated that marketing through the Internet can be
an extremely potent ball game.

With copious amount of literature, thousands of articles and multiple studies


conducted around e-commerce, it undoubtedly is the new mantra in the world of
marketing. In justification to the aforementioned statement, there is practically no dearth
of e-tailing portals and deal websites floating in the market at this moment.

The basic explanation to such a boom lies in the fact that e-tail has surfaced as a
boon to both the sellers and the consumers. It has garnered significant attention from
consumers due to the convenience of shopping. The need to physically visit stores has, in
some cases, been eliminated. Instead, you can just sit at home and order, easily browse
through a host of products, conveniently compare prices and avail the best deal. It’s all
about saving on precious time, energy, money and get what you desire. On the flip side,
it has succeeded in pleasing the sellers by providing a faster buying/selling procedure,
resulting in saving a lot of time. Now, products can be made available for purchase and
sold around the clock. This also provides a wider reach, defying all theoretical
geographic limitations in reaching out to customers. Sellers have shown remarkable
enthusiasm for this system as their need to continuously augment and keep abreast of
customer expectations and desires is aptly catered to.

Not long ago, when the concept was newly induced in the Indian markets
(first put to practice by companies like Dell), the average Indian was sceptical. While the
west comfortably transacted and shopped through Amazon.com and e-bay, the Indian

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markets still went after the touch-and-feel of physical products, opulent showrooms,
salespersons with good etiquette and liquid transactions. But over the time, with a
number of payment gateways coming into the picture and making e-transactions
effortless and trouble-free and curbing security threats, people have grown comfortable
with e-shopping. This to the extent that today, four out of five Internet users shop or do
their pre-shopping research online, thus recording 13.5 million customers of consumer
products and outnumbering 8.5 million customers of travel products. Customers today
are hooked to online shopping and are not even fighting shy of deal sizes that cross Rs
20,000-Rs 25,000 while earlier, they hardly went up till Rs 2,000.

Industry figures suggest that the soaring numbers in the e-commerce space
are driven by the young blood and these are expected to grow tenfold, being pushed by
the Generation. The most sought after categories for these buyers currently are: mobile &
accessories, computer hardware & consumer electronics and travel products like train
and air tickets.

However, plenty of competition has been observed in the e-commerce market.


With countless congruent e-commerce players, the winners will be those who will be
able to provide a delightful experience across the entire ecosystem, will have robust
business models and can scale quickly. Their reward will be to take a healthy share of the
$100 billion industry in the next few years.

E-commerce is the new mantra, building a splendid crescendo of excitement,


and it definitely has a long way to go.

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CHAPTERS IV:

COMPANY PROFILE

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1. History

Flipkart (Company) was founded in 2007 by Sachin Bansal and Binny Bansal, both
alumni of the Indian Institute of Technology Delhi. They worked for Amazon, and left to
create their new company incorporated in October 2007 as Flipkart Online Services Pvt.
Ltd. The first product they sold was the book Leaving Microsoft to Change The World to
a customer from Hyderabad. Flipkart now employs more than 33,000 people. Flipkart
allows payment methods such as cash on delivery, credit or debit card transactions, net
banking, e-gift voucher and card swipe on delivery. After failure of its 2014 Big Billion
Sale, Flipkart recently completed the second edition of Big Billion Sale held between
October 13 and 17. Where it is reported that they saw a business turnover of 300 million
in gross merchandise volume.

2. Priorities and focus

Flipkart is going big on kids. India's largest ecommerce company has marked children as
a "high focus" category in the fashion segment for the coming year and has announced
the launch of 'Flipkart Li'l Stars'— a store dedicated to children on its platform.

Sales volumes of children's clothing and accessories grew more than three times in the
past year, contributing more than 10 per cent to Flipkart's overall fashion business.
They're expected to increase five-fold in the year ahead.

3. Vision and Mission

VISION

The vision of the company is to become Amazon of India.

MISSION

The mission of the company is to provide a delightful customer experience.

4. Present status of the company

4.1 Nature of the Organization

India's leading ecommerce business portal and Online Megastore

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4.2 Key executives and Board of Directors

Name Title

Binny Bansal Co-Founder and Chief Executive Officer

Sachin Bansal. Co-Founder and Executive Chairman

Sanjay Baweja Chief Financial Officer

Sujeet Kumar President of Operations

Michael Head of Brand Alliances and Vice President of Retail


Adnani

4.3 Product Profile

Flipkart Online Services Pvt. Ltd. owns and operates an online shopping Website in
India. It provides books, movies, music, games, consoles, gaming accessories, mobiles,
mobile accessories, cameras, camera accessories, computers, computer accessories,
network components, software, peripherals, home and kitchen appliances, TV and video
products, and personal and health care products.

4.4 Major Competitors

Amazon: Amazon.com, Inc. often referred to as simply Amazon, is an American


electronic commerce and cloud computing company with headquarters in Seattle,
Washington. It is the largest Internet-based retailer in the United States. Amazon.com
started as an online bookstore, later diversifying to sell DVDs, Blue-rays, CDs, video
downloads/streaming, MP3 downloads/streaming, audio book downloads/streaming,
software, video games, electronics, apparel, furniture, food, toys and jewellery.

Snapdeal: Snapdeal is an online marketplace, New Delhi, India. The company was
started by Kunal Bahl, a Wharton graduate as part of the dual degree M&T Engineering
and Business program at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February
2010.

EBay: EBay Inc. (stylized as "e-bay" since late 2012) is an American multinational
corporation and e-commerce company, providing consumer-to-consumer and business-
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to-consumer sales services via the internet. It is headquartered in San Jose, California. E-
bay was founded by Pierre Omidyar in 1995, and became a notable success story of the
dot-com bubble. Today it is a multibillion-dollar business with operations localized in
over 30 countries.

5. Future Prospects and Growth

E-commerce giant Flipkart has said that it has sold 150 million products till date this
calendar year, registering a whopping 150% growth over last year. Fashion, lifestyle,
home and consumer electronics were among top selling categories, while Bangalore,
New Delhi, Chennai, Pune, Coimbatore and Ahmadabad were top cities in terms of
traffic.
The eight-year-old e-commerce player offers about 30 million products across 70
categories, including books, media, consumer electronics and lifestyle to its 45 million
registered users. Besides catering to buyers, with 10 million visits (hits) daily, the
company also provides an e-platform for sellers to reach a wider customer base. With
30,000 sellers, the customers have access to a wide range of products across categories
and geographies.

6. Milestones

 Flipkart has announced rising of $1 billion (Rs. 6,000 crore at 1 dollar = 60


rupees) in fresh funding - the biggest ever by an Indian internet company all
around. With this funding India’s biggest e-commerce player is now expected to
value at $5 billion as per estimates. Per estimates.
 Flipkart, India's biggest e-commerce player today was set up by IITians Binny
Bansal and Sachin Bansal in 2007 with an investment of Rs 4 lakhs.
 2010: WeChat, a social book discovery tool.
 2011: Mime360, a digital content platform company.
 2011: Chakpak.com, a Bollywood news site that offers updates news, photos and
videos. Flipkart acquired the rights to Chakpak's digital catalogue which includes
40,000 filmographies, 10,000 movies and close to 50,000 ratings. Flipkart has
categorically said that it will not be involved with the original site and will not
use the brand name. .

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 2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the


company for an estimated US$25 million. Letsbuy.com was closed down and all
traffic to Lets buy has been diverted to Flipkart.
 Before May, Flipkart had raised between $540 million and $560 million,
according to industry estimates, which valued the company at about $1.6 billion
at the end of 2013.
 In October 2013, the website announced the closure of a round of funding
commenced in July 2013. The total funds raised in this round stood at $360
million. IN February, Flipkart and Motorola Mobility in an exclusive partnership
announced the launch of Smartphone Moto G in India. There was tremendous
response from online shoppers to the launch with the 16GB version being sold
out in first 15 minutes.
 2014: Acquired myntra.com in an estimated ₹ 20 billion (2,000 crore,
 about US$319 million) deal.
 The company has seen a turbo-charged growth, hitting an annualized sales mark
of $1 billion (Rs. 6,000 crore) in 2014 - a year ahead of its target. In May 2014,
Flipkart acquired fashion portal Myntra and said it would invest $100 million
(nearly Rs. 600 crore) in the fashion business.
 2015: Flipkart acquired a mobile marketing start-up Appiterate as to strengthen
its mobile platform.

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CHAPTER V:
DATA ANALYSIS

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The purpose of every research study is to draw conclusion. Hence after the data
has been collected it must be processed and analysed to draw conclusions. The editing,
coding and tabulating is must when the interviewer has a huge amount of data
concerning the research project at hand. The process of evaluating data using analytical
and logical reasoning to examine each component of the data provided. This form of
analysis is just one of many steps that must be completed when conducting a research
experiment. Data from various sources is gathered, reviewed and analysed to form some
sort of findings and conclusions. It is through systematic analysis that the underlying
features of the data are revealed and valid generalisation is arrived at.

The analysis is basically aimed at giving interference or associations or difference


between the various variables present in the research. The collected data was analysed by
using diagrams, graphs, charts etc..

The conclusion summery and recommendations are based on the statistical


analysis and interferences drawn. This chapter mainly focuses on the analysis and the
interpretation of the data collected from the field. A structured questioner helped to get
information from the respondents. Questioners are given to different category of people
and it consists of 19 question in total. In this project researches collects data from 50
respondents through questioners. These data are systematically analyzed and interpreted
in this chapter. Here researchers analysed data using table charts and pie charts for easy
understanding.

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Table 5.1

Table showing gender of online consumers

Gender Responds Percentages (%)

Male 35 70

Female 15 30

Total 50 100

Figure 5.1

Pie chart showing gender of online consumers

Gender

Male Female

Interpretation:

In this survey 70% of the respondents are male and the balance 30% are female which
indicates that men prefer online marketing than women.

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Table 5.2

Table showing age group of online consumer

Age group Responds Percentage (%)

Child 4 8

Youngster 27 54

30-60 16 32

Above 60 3 6

Total 50 100

Figure 5.2

Graph showing age group of online consumer

Column1

6 8

32

54

child youngster 30-60 Above 60

Interpretation:

This analysis showcases the participation of people in the online marketing which
include 54% youngsters, 32% of middle age and only 8% and 6% of children and senior
citizen respectively. This indicates that youngsters are more active in online shopping
than any other category of age group
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Table 5.3

Table showing whether they shop online

Do you shop online respond Percentages (%)


yes 43 86
No 7 14
total 50 100

Figure 5.3

Figure showing whether respondents shop online

Chart Title

0 5 10 15 20 25 30 35 40 45 50

no yes

Interpretation:

This table shows that out of 50 people only 86% prefer online marketing while 14% does
not.

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Table 5.4

Table showing how often they shop online.

respond Percentages (%)

Once in a week 6 14

Once in a month 25 58

Once in a 6 months 6 14

Once in a year 6 14

Total 43 100

Figure 5.4

Figure showing how often do they shop online.

Chart Title
30

25

20

15

10

0
frequency of online
shopping

once a week once a month once in 6 months once a year

Interpretation:

This analyses that 58% of the respondents shop once in a month and the others prefer
shopping once in a week, once in 6 months and once in a year in the same ratio of 14%.

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Consumer preferences on online marketing with reference to flipkart

Table 5.5

Table showing reasons for shopping online.

responds Percentages (%)


convenience 13 30
Discount 6 14
Many option 18 42
Others 6 14
Total 43 100

Figure 5.5

Figure showing reasons for shopping.

reasons

convenience discount many options others

Interpretation:

According to this analysis 42% of the respondents shop online for the verity of options
available to them, 30% according to their convenience, 14%for discount available and
remaining 14% for other reasons.

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Consumer preferences on online marketing with reference to flipkart

Table 5.6

Table showing which online website respondents prefer

Websites Responds Percentages (%)


Flipkart 42
e-bay 14
Snapdeal 14
Amazon 30
Total 100

Figure 5.6

Figure showing which online website respondents prefer

website you prefer

flipkart e-bay snapdeal amazon

Interpretation:

This chart shows that 42% prefer flipkart, 30% prefer Amazon and only 16% and 12%
prefer e-bay and snapdeal respectively. This shows that participants prefer flipkart and
Amazon sites for online shopping than others

De Paul Institute of Science And Technology Page 28


Consumer preferences on online marketing with reference to flipkart

Table 5.7

Table showing how respondents came to know about flipkart

Respond Percentages (%)


Word of mouth 12 28
print media 12 28
TV 6 14
internet 13 30
total 43 100

Figure 5.7

Figure showing how respondents came to know about flipkart.

Column1

word of mouth print media tv internet

Interpretation:

This analysis shows that 30%came to know about flipkart through internet, word-of-
mouth and print media contributed equal awareness but only 14% contributed television.

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Consumer preferences on online marketing with reference to flipkart

Table5.8

Table showing what respondents prefer from buying online.

Products Respond Percentage (%)


Books 7 16
Electronics 18 42
Apparels 11 26
Fancy items 7 16
Total 43 100

Figure5.8

Figure showing what respondents prefer from buying online.

products

fancy items books

apparels

electronics

books electronics apparels fancy items

Interpretation:

According to this data, electronics (42%) and apparels (26%) are mostly purchased from
online websites compared to books (16%) and fancy items (16%).

De Paul Institute of Science And Technology Page 30


Consumer preferences on online marketing with reference to flipkart

Table 5.9

Table showing factors attracting respondents to buy through online.

Factors Respond Percentage (%)


Safe delivery 19 44
Cash on delivery 5 28
EMI facility 7 16
User friendly website 12 12
Total 43 100

Figure 5.9

Figure showing factors attracting respondents to buy through online.

factors

safe delivery cash on delivery EMI facility user friendly website

Interpretation:

According to this data, factors such as safe delivery (44%), cash on delivery (28%)
attracts more customers than factors such as user friendly websites (12%) and EMI
facilities (16%) does.

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Consumer preferences on online marketing with reference to flipkart

Table 5.10

Table showing how much respondents spend on flipkart per month.

Amount Respond Percentage (%)


Less than 500 8 19
500-2000 17 40
2000-5000 13 30
Above 5000 5 11
total 43 100

Figure 5.10

Figure showing how much respondents spend on flipkart per month.

Column1

less than 500 500-2000 2000-5000 above 5000

Interpretation:

This chart shows that 40% of the respondents spent around rs500- rs2000, 30% spends
rs2000- rs5000, 19% spends less than rs500 and only 11% spends above 5000.

De Paul Institute of Science And Technology Page 32


Consumer preferences on online marketing with reference to flipkart

Table 5.11

Table showing when the respondents prefer to buy from online.

Respond Percentages (%)


Festive season 8 19
Discount season 12 28
Occasionally 19 44
Regularly 4 9
Total 43 100

Figure 5.11

Figure showing when the respondents prefer to buy from online.

Column1

festive season discount season occasionally regularly

Interpretation:

This survey shows that 44%shop occasionally, 28% during discount season, 19% during
festive season and only 9% shop regularly from online sites.

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Consumer preferences on online marketing with reference to flipkart

Table 5.12

Table showing respondents experience on other site compared to flipkart.

Respond Percentages (%)


Better 12 28
Equal 20 47
Poor 10 23
Not applicable 1 2
total 43 100

Figure 5.12

Figure showing respondents experience on other sites compared to flipkart.

Column1

better equal poor not applicable

Interpretation:

In this survey 47% respondents feel their experience in flipkart is equal to that of other
online sites, 28% feels its better and 23% considers it as poor.

De Paul Institute of Science And Technology Page 34


Consumer preferences on online marketing with reference to flipkart

Table 5.13

Table showing whether respondent would buy if flipkart offers a new product.

Respond Percentages (%)


Yes 5 12
No 7 16
Depend on product 25 58
Not sure 6 14
Total 43 100

Figure 5.13

Figure showing whether respondent would buy if flipkart offers a new product.

Chart Title
30

25

20

15

10

yes no depend on product not sure

Interpretation:

According to this data, if flipkart introduces a new product 58% of the respondents
would buy it depending upon the product, 16% wouldn’t agree to buy it and only 12%
would buy the product offered.

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Consumer preferences on online marketing with reference to flipkart

Table 5.14

Table showing how respondents rate their after sale services.

Respond Percentages (%)


Poor 6 14
Average 13 30
Good 19 44
Excellent 5 12
Total 43 100

Figure 5.14

Figure showing how respondents would rate their after sale services.

Column1

poor average good excellent

Interpretation:

This survey proves that 44% rated after sale services as good,30% rated it average, 14%
rated it poor but only 12% of respondents feel it as excellent.

De Paul Institute of Science And Technology Page 36


Consumer preferences on online marketing with reference to flipkart

Table 5.15

Table showing payment method opted by respondent in online shopping.

Respond Percentages (%)


Cash on delivery 28 65
Debit card 7 16
Credit card 6 14
Internet banking 2 5
Total 43 100

Figure 5.15

Figure showing payment method opted by respondent in online shopping

Payment methods

cash on delivery debit card Credit card internet banking

Interpretation:

According to this survey respondents prefer to pay cash on delivery (65%), through debit
card 16%, credit card 14% and via internet banking 5%.

De Paul Institute of Science And Technology Page 37


Consumer preferences on online marketing with reference to flipkart

Table 5.16

Table showing whether a respondent would prefer to buy a product if cash on delivery
was not available.

Respond Percentages (%)


Yes 18 42
No 25 58
Total 43 100

Figure 5.16

Figure showing whether a respondent would prefer to buy a product if cash on delivery
was not available.

Column1

yes no

Interpretation:

It is very clear that majority of the respondents would not buy the product if an option for
cash on delivery was not available.

De Paul Institute of Science And Technology Page 38


Consumer preferences on online marketing with reference to flipkart

Table 5.17

Table showing difficulty faced by respondent in online shopping.

Difficulties Respond Percentages (%)


Wrong delivery 6 14
Late delivery 18 42
Lack of flexibility 12 28
Damaged product 7 16
Total 43 100

Figure 5.17

Figure showing difficulty faced by respondent in online shopping.

DIFFICULTIES

Wrong delivery late delivery lack of flexibility damaged product

Interpretation:

This survey shows that 42% of the respondents faced difficulty in online shopping due
to late delivery, 28% due to lack of flexibility, 14% by wrong delivery and the rest 16%
due to damaged products.

De Paul Institute of Science And Technology Page 39


Consumer preferences on online marketing with reference to flipkart

Table 5.18

Table showing how respondent rate their overall flipkart experience.

Overall experience Respond Percentages (%)


Poor 2 5
Good 25 58
Average 10 23
excellent 6 14
Total 43 100

Figure 5.18

Figure showing how respondent rate their overall flipkart experience.

OVERALL EXPERIENCE

poor good average excellent

Interpretation:

58% of the respondents rated overall flipkart experience as good, 33% felt the experience
average, 14% had an excellent experience and balance 5% rated their experience poor.

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Consumer preferences on online marketing with reference to flipkart

CHAPTER VI:
FINDINGS, SUGGESTIONS
AND CONCLUSION

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Consumer preferences on online marketing with reference to flipkart

FINDINGS
1. Men prefer online marketing than women.
2. Mostly youngsters are more active shopping online than middle aged persons,
children are senior citizens.
3. Most people prefer online marketing than any other form of marketing.
4. Majority of the people shop online once in every month.
5. Internet plays a vital role in providing awareness about online marketing.
6. Electronic gadgets are the most widely purchased product online.
7. Safe delivery of products has attracted a majority of people to purchase product via
online.
8. Majority of the online customers prefer cash on delivery.
9. Online customers feel the shopping experience of flipkart is good compared to other
shopping sites.
10. The after sale services provided on flipkart sites have been proved good.

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Consumer preferences on online marketing with reference to flipkart

SUGGESTIONS

 Flipkart should try to facilitate cash on delivery system on majority of products.


 It should provide some special offers to attract middle aged customers.
 Websites can be more user friendly and should ensure convenience.
 Special offers should be provide to regular customers to retain them.
 Development of m-commerce in market should be introduced.
 Increasing internet penetration.
 Target social media to attract young customers.
 Secure methods should be introduced to safeguard trust and confidence of
customers.
 Customer preference should be given more priority.

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Consumer preferences on online marketing with reference to flipkart

CONCLUSION
The study “consumer preference in online marketing with
reference to flipkart”, is satisfactory. This analysis helps the researcher to
understand the consumer preferences on online marketing with main reference to
flipkart and other competitors on the same field. The question of trust is more
important in internet shopping than in offline trade. This is because the
cultivation of trust is particularly important when uncertainty and risk are
inherent and contracts and warranties are often absent. This makes shopping on
the internet inherently risky from the view point of security, because of the
importance of trust in inherent shopping; initial trust in internet vendors is a
major factor influencing the growth of e-commerce.
The overall brand value of flipkart is good, but it is facing some
tough competitions from its global competitors like e-bay an Amazon. But if
talking about domestic market i.e. India; it is the most superior E- Business portal
which is aggressively expanding an planting its roots deep into the Indian market
amd at the same time shifting the mindset of the people i.e from going and
shopping from physical store to online stores, which is magnificent.

De Paul Institute of Science And Technology Page 44


Consumer preferences on online marketing with reference to flipkart

BIBLIOGRAPHY

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Consumer preferences on online marketing with reference to flipkart

Books:
 Richard gay,Charlesworth & Rita Esen (2012)., Online Marketing And
Customer- Led Approach,
 S. Jaisival (2012).Electronic Communication for business, :Galgotia
publications
 Whitely (2014). E-Business: Tata McGraw hill Publication Co. Ltd.
 Efrain Turban, David king (2012), Electronic commerce: Pearson
Publications.
 Schneiders, Gary P(2012). E-Commerce Strategy, Technology And
Implementation. : Cengage Learning Publications.

Websites:

 www.wikipedia.com
 www.flipkart.com
 www.Slideshare.com
 www.yourstory.com
 www.successstory.com

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Consumer preferences on online marketing with reference to flipkart

APPENDIX

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Consumer preferences on online marketing with reference to flipkart

QUESTINNAIRE ON

“CONSUMER PREFERENCES ON ONLINE MARKETING


WITH REFERENCE TO FLIPKART”
1. Gender:
 Male
 Female
2. Age group?
 child
 youngster
 between 30-60
 above 60
3. Do you shop online?
 Yes
 No
4. How often do you shop online?
 once in a week
 once in a month
 once in a 6 month
 once in a year
5. Which of the following are the reasons for your shopping?
 convenience
 discount
 many options
 others (please specify)
6. Which online store do you prefer?
 flipkart
 E-bay
 Snapdeal
 Amazon

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Consumer preferences on online marketing with reference to flipkart

7. How did you come to know about flipkart?


 word of mouth
 print media
 TV
 internet
8. What do you prefer buying from flipkart?
 books
 electronics
 apparels
 fancy items
9. Which factors attracts you to buy through flipkart?
 safe delivery
 cash on delivery
 EMI facility
 user friendly website
10. How much do you spend on flipkart per month?
 Less than rs500
 500-2000
 2000-5000
 above 5000
11. When do you usually prefer to shop from flipkart?
 festive season
 discount season
 occasionally
 Regularly
12. How was your experience on the other sites compared to flipkart?
 better
 equal
 poor
 not applicable

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Consumer preferences on online marketing with reference to flipkart

13. Will you buy if flipkart offer a new product range?


 yes
 no
 depend on product
 not sure
14. How do you rate the after sale services?
 poor
 average
 good
 excellent
15. Which payment method do you prefer?
 cash on delivery
 debit card
 credit card
 internet banking
16. Will you buy a product if cash on delivery is not available?
 Yes
 No
17. Did you face any difficulties in online shopping with flipkart?
 Wrong delivery
 Late delivery
 Lack of flexibility
 Damage product
18. How do you rate your overall flipkart experience?
 poor
 good
 average
 excellent
19. Do you have any suggestion?

De Paul Institute of Science And Technology Page 50

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