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CERTIFICATE
This project work is original and not submitted earlier for the award of any degree/ diploma
or associate ship of any other University/ Institution.
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DECLARATION
I hereby declare that the project titled “E-COMMERCE -A STUDY ON THE IMPACT OF
ONLINE RETAILING ON THE SECTOR A CASE ON FLIPKART” is an original work
prepared by me and submitted to University of Mumbai in partial fulfilment of M.M.S. Degree
for the Academic Year 2018-19.
The matter embodied in this project report has not been submitted to any other university or
institution for the award of the degree. This project is my original work and has not been
presented earlier in this manner.
Signature of Student
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ACKNOWLEDGEMENT
I would like to express my gratitude to all those who made it possible for me to complete this
project. I want to express my sincere gratitude to my guide Mrs. Manali Patil for giving his
valuable guidance & inputs which helped me in successful completion of my project for
guiding me through the project.
Finally, I would like to express my appreciation towards my parents & relatives for their
immense support. They have encouraged & motivated me in all respect. I perceive this
opportunity as a big milestone in my career development. I will strive to use gained skills in
the best possible way & I will continue to work on their improvement, in order to attain my
desired career objectives.
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EXECUTIVE SUMMARY
E-Commerce has unleashed yet another revolution, which is changing the way businesses buy
and sell products and services. Players have made intensive efforts to upgrade areas such as
logistics and the payment infrastructure. Furthermore, the Indian consumer’s perception of
online shopping has undergone a drastic change. Given these developments, venture capital
investors, who were restricting themselves to the sidelines, are now taking a keen interest in
the country’s e-Commerce market. In this report, an insight into India’s e-Commerce market
has been provided.
This project is a part of study and focuses on factors which online Indian buyers keep in mind
while shopping online. This research found that information, perceived usefulness, ease of use;
perceived enjoyment and security/privacy are the five dominant factors which influence
consumer perceptions of Online purchasing.
The report focuses on highlights factors driving growth across these segments. The online retail
segment has evolved and grown significantly over the past few years.
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TABLE OF CONTENT
1 EXECUTIVE SUMMARY 4
2 INTRODUCTION 6
4 COMPANY PROFILE 12
5 REVIEW OF LITERATURE 14
6 OJECTIVE OF STUDY 15
8 RESEARCH METHODOLOGY 16
9 RESULTS 18
10 FINDING 26
11 LIMITATION 27
12 DISCUSSION 28
13 RECOMMENDATION 29
14 CONCLUSION 30
15 BIBLIOGRAPHY 31
16 ANNEXURE 32
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INTRODUCTION
The Internet, as a mean for both firms and individuals to conduct business, is nowadays one of
the most widely used non-store formats. With popular trends and demands the concept of the
Internet as the way forward to increase profit margins, companies new and old are creating
websites here and there. The significance for retailers to having a web site is that a web site is
informational and transactional in nature, as the web site can be used for advertising and direct
marketing; sales; customer support and public relations. It has been more than a decade since
business-to-consumer
Ecommerce refers to any form of business transaction conducted online. The most popular
example of ecommerce is online shopping, which is defined as buying and selling of goods via
the internet on any device. However, ecommerce can also entail other types of activities, such
as online auctions, payment gateways, online ticketing, and internet banking. Using e-
commerce, organizations can expand their market to national and international markets with
minimum capital investment. An organization can easily locate more customers, best suppliers,
and suitable business partners across the globe.
Internet is changing the way consumers shop and buy goods and services and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with the
aim of cutting marketing costs, thereby reducing the price of their products and services in
order to stay ahead in highly competitive markets. Companies also use the Internet to convey,
communicate and disseminate information, to sell the product, to take feedback and also to
conduct satisfaction surveys with customers.
Customers use the Internet not only to buy the product online, but also to compare prices,
product features and after sale service facilities they will receive if they purchase the product
from a particular store.
The ultimate goal of most businesses is to increase sales and income. Ideally, you want to
attract new customers to your products and encourage repeat purchases. Brand awareness refers
to how aware customers and potential customers are of your business and its products.
Brand Awareness is the extent to which a brand is recognized by potential customers and is
correctly associated with a particular product. Expressed usually as a percentage of target
market, brand awareness is the primary goal of advertising in the early months or years of a
product’s introduction.
Electronic commerce, commonly known as ecommerce, is a type of industry where buying and
selling of product or service is conducted over electronic systems such as the Internet and other
computer networks. Electronic commerce draws on technologies such as mobile commerce,
electronic funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated
data collection systems. Modern electronic commerce typically uses the World Wide Web at
least at one point in the transaction's life-cycle, although it may encompass a wider range of
technologies such as e-mail, mobile devices social media, and telephones as well.
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Electronic commerce is generally considered to be the sales aspect of e-business. It also
consists of the exchange of data to facilitate the financing and payment aspects of business
transactions.
Advantages of Ecommerce
E-commerce helps to simplify the business processes and makes them faster and
efficient.
Disadvantages of Ecommerce
The disadvantages of e-commerce can be broadly classified into two major categories:
Technical disadvantages
Non-Technical Disadvantages
Special types of web servers or other software might be required by the vendor,
setting the e-commerce environment apart from network servers.
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BUSINESS MODELS
Website following B2B business model sells its product to an intermediate buyer who then
sells the product to the final customer. As an example, a wholesaler places an order from a
company's website and after receiving the consignment, sells the product to final customer who
comes to buy the product at wholesaler's retail outlet.
Business - to - Consumer(B2C)
Website following B2C business model sells its product directly to a customer. A customer can
view products shown on the website of business organization. The customer can choose a
product and order the same. Website will send a notification to the business organization via
email and organization will dispatch the product/goods to the customer.
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Consumer - to - Consumer (C2C)
Website following C2C business model helps consumer to sell their assets like residential
property, cars, motorcycles etc. or rent a room by publishing their information on the website.
Website may or may not charge the consumer for its services. Another consumer may opt to
buy the product of the first customer by viewing the post/advertisement on the website.
In this model, a consumer approaches website showing multiple business organizations for a
particular service. Consumer places an estimate of amount he/she wants to spend for a service.
For example, comparison of interest rates of personal loan/ car loan provided by various banks
via website. Business organization who fulfills the consumer's requirement within specified
budget approaches the customer and provides its services.
B2G model is a variant of B2B model. Such websites are used by government to trade and
exchange information with various business organizations. Such websites are accredited by the
government and provide a medium to businesses to submit application forms to the
government.
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Government - to - Business (G2B)
Government uses B2G model website to approach business organizations. Such websites
support auctions, tenders and application submission functionalities.
Government uses G2C model website to approach citizen in general. Such websites support
auctions of vehicles, machinery or any other material. Such website also provides services like
registration for birth, marriage or death certificates. Main objectives of G2C website are to
reduce average time for fulfilling people requests for various government services.
Broadly speaking, electronic commerce emphasizes the generation and exploitation of new.
business opportunities and to use popular phrases: “generate business value” or “do more with
less”.
Electronic Commerce is enabling the customer to have an increasing say in what products are
made, how products are made and how services are delivered (movement from a slow order
fulfillment process with little understanding of what is taking place inside the firm, to a faster
and rt1ore open process with customers having greater control
Effective Performance
It leads to more effective performance i.e. better quality, greater customer satisfaction and
better corporate decision making.
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Greater Economic Efficiency
We may achieve greater economic efficiency (lower cost) and more rapid exchange (high
speed, accelerated, or real-time interaction) with the help of electronic commerce.
Execution of Information
It enables the execution of information-laden transactions between two or more parties using
inter connected networks. These networks can be a combination of ‘plain old telephone system’
(POTS), Cable TV, leased lines and wireless. Information based transactions are creating new
ways of doing business and even new types of business.
Increasing of Revenue
Firm use technology to either lower operating costs or increase revenue. Electronic Commerce
has the Potential to increase revenue by creating new markets for old products, creating new
information-based products, and establishing new service delivery channels to better serve and
interact with customers. The transaction management aspect of electronic commerce can also
enable firms to reduce operating costs by enabling better coordination in the sales, production
and distribution processes and to consolidate operations arid reduce overhead
Reduction of Friction
Electronic Commerce research and its associated implementations is to reduce the “friction” in
on line transactions frictions is often described in economics as transaction cost. It can arise
from inefficient market structures and inefficient combinations of the technological activities
required to make a transaction. Ultimately, the reduction of friction in online commerce will
enable smoother transaction between buyers, intermediaries and sellers.
Electronic Commerce is also impacting business .to business interactions. It facilitates the
network form of organization where small flexible firms rely on other partner, companies for
component supplies and product distribution to meet changing customer demand more
effectively. Hence, an end to end relationship management solution is a desirable goal that is
needed to manage the chain of networks linking customers, workers, suppliers, distributors and
even competitors. The management of "online transactions" in the supply chain assumes a
central role.
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COMPANY PROFILE
Flipkart went live in 2007 with the objective of making books easily available to anyone who
had internet access. They are present across various categories including movies, music, games,
mobile, cameras, computers, healthcare and personal product, home appliance and electronics
With over 11.5 million book titles, 11 different categories, more than 2 million registered users
and sale of 3000 items a day, they’re one of the leading e-commerce players in the country.
Their success is largely due to their obsession with providing customers a memorable online
shopping experience. Be it cash on delivery, a 30 days replacement policy, EMI option, free
shipping and of course the great price they offer.
Flipkart has worked wonders in the field of E-commerce, wholly revolutionizing the way
Indians purchased products, that too directly from the conglomerates themselves.
Long term objective of Flipkart- Flipkart aims to become the largest retailer of India. Flipkart
wants to be present across all categories, except in groceries and automobiles, the CEO said.
“Our target is not just those who shop online. We want to highlight the convenience of e-
commerce to traditional offline shoppers and, thus, help grow the market”
SWOT ANALYSIS
STRENGHTHS
WEAKNESS
OPPORTUNITY
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THREATS
Amazon
Snapdeal
eBay
VISION
MISSION
OBJECTIVE
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LITERATURE REVIEW
Growth of E-commerce in India
E-commerce is one of the fastest growing segments in the Indian Economy. Though marked
by high growth rate, the Indian e-commerce industry has been behind its counterparts in many
developed and emerging economies, primarily due to a relatively low internet user base.
However, increased technological proliferation combined with internet and mobile penetration,
presents a favorable eco-system for the development of e-commerce in India. Launch of 4G
services and decline in the tariffs of data plans and prices of data cards/USB dongles have
reduced the cost of ownership of an effective internet connection. Availability of low-cost
smart phones and the extension of internet and broadband to the remotest corners will boost
the augmentation of the internet user base, effectively bridging the gap between potential online
buyers and actual buyers.
The demographic dividend of the country also seems to encourage and favor the growth of
ecommerce. The survival of the e-commerce firms in a highly dynamic environment becomes
a challenging task when coupled with the cutthroat competition prevailing in the sector. The
onus then lies on the firms to constantly adapt and innovate while providing an information
rich and seamless experience to ensure customer loyalty. This study attempts to explore the
evolution of e-commerce in India and identifies various challenges to as well the factors
responsible for the future growth and development of e-commerce.
This study attempts to analyze the characteristics of buying behavior of online shoppers.
Consumer buying behavior in respect of online shopping was studied using different socio-
economic variables. It also provides a support that helps researchers understand the drivers of
consumers’ attitude and goal to shop on the Internet, and consumers’ perceptions regarding
ease of use and usefulness. Conclusions derived from the analysis can be used as useful guide
for market orientation. The outcomes of the study suggest that assessment of consumer buying
behavior can contribute to a better understanding of consumer buying behavior in respect of
online shopping
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OBJECTIVE
To discover the key factors that influence online buying behaviour of consumers in
India
SCOPE OF STUDY
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RESEARCH METHODOLOGY
For this study descriptive and analytical methods will be used the data collected will be analyze
logical method of tabulation and graphic representation to draw valid inferences and conclusion
the reform.
Research may be very broadly defined as systematic gathering of data and information and its
analysis for advancement of knowledge in any subject. Research attempts to find answer
intellectual and practical questions through applications of systematic method.
A research project conducted scientifically has a specific framework of research from the
problem identification to the research report. This framework of conducting research is known
as research design
Source of Data
Primary Source
I decided primary data collection method because our study nature does not permit to apply
observation method-
In survey approach we had selected a questionnaire method for taking a customer view because
it is feasible from the point of view of our subject & survey purpose. We conducted 100 sample
of survey in our project to judge the satisfaction level of customers which took home loan
Secondary Source
It was collected from internal sources. The secondary data was collected on the basis of
organization file, official records, newspaper, magazines, preserved information in the
company’s database and website of the company
AREA OF STUDY
B2C Model of E-Commerce taking the example of www.flipkart.com which is our case study
of this project pertaining to one of the models (B2C) of E-Commerce and the main crux of this
study will be to see how www.flipkart.com has utilized the B2C Model to revolutionize E-
Commerce in India.
The Organization, which I have selected for my Study, is “Flipkart.com” an Emerging Indian
online mega store. I would be studying the strategies that the portal have used to attract Indian
masses, so as to give them the total online shopping experience, the portal offers an unique
strategy towards the masses to make payment modes like Cash & Card on delivery, which
invariably helps the masses to avoid the hassle of making online payments, as the credit card
penetration in India is very low, &people are reluctant to make online payments more to do
with the Indians psyche. Since portals are giving a customized offering to the masses i.e. rite
from the wider product portfolio to payment options, it making very convenient for the users
to have an online shopping experience hassle free.
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Flipkart has followed the same business model as of Amazon.com, i.e. starting from selling
books therefore we can call it as “Flipkart - The Amazon of India “, however Flipkart is now
Regional based E-business portal i.e. only targeting Indian Market. More Interesting is that,
the minds that worked to start Flipkart are also the Ex. Amazon Employees.
Flipkart.com is an Indian based e-commerce company started by Binny Bansal and Sachin
Bansal, who previously worked at Amazon.com. Post their experience, they ventured into a
similar e-business idea and launched it in India. Flipkart.com works with the aim of making
products and goods easily available at the doorsteps of anyone who has Internet access.
Flipkart.com started off from selling books in 2007, based in Bangalore, and entered then
consumer electronics category with the launch of mobile phones, in September 2010. Since
then it kept on adding more new products categories including books, mobiles, computers,
cameras, home & electronic gadgets& appliances, in addition to these very Recently,
Flipkart.com has also widened its foray by entering into the emerging digital content market
with the recent launch of Flyte, the digital music store & is still continuing to enlarge its product
portfolio. It is now one of the leading e-commerce players in India, currently ranked no.1 online
shopping site in India, spread in 37 cities, with 11.5 million plus book titles, 14 different
categories,26 million plus registered users and sale of 100000 items a day. It provides online
shoppers a memorable online-shopping experience because of its innovative services like:
• Cash on Delivery,
• 30-day replacement policy,
• Easy Monthly Instalment options (EMI),
• Free shipping
• Discounted prices & deals
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RESULTS
Age group of surveyed respondents
8%
15% 16-24
25-34
50%
35-49
Interpretation:
Above figure shows that 50% respondents are between 16-24 years old, 27% respondents
are between 25-34 years old, 15%respondents between 35-49 years old, and 8% respondents
are between 50 & above. Overall result shows that between all of the respondents who has age
between 16 to 49 years (50%+27%=15%) people are more familiar to shop online on my target
population.
Gender of Respondents
Male 58 58%
Female 42 42%
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42% Male
58% Female
Interpretation:
According to demography profile, in this study 58% male and 42% female respondents
are part of my target population. From these groups total respondents are 100. So, according to
the survey result, the male respondents are more and can be told that they interested to shop
online than female, even though both of them shop online.
8%
7% Business person
39% Housewife
Salaried
Student
46%
Interpretation:
In this survey, 46% of the respondents are salaried and 39% are students. So, they both together
made majority of respondent ‘s percentage (85%). 8% are business persons and 7% are House
wife. Salaried persons and students will always look for new technologies and new services
which make them more comfort.
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Frequency of purchase from online
0% 9%
4%
Always
Often
Sometimes
35%
52% Seldom
Never
Interpretation:
More than half of them use online shopping sometimes, i.e. 52%. People who always and
mostly shop through online shopping are also good in number, 9 and 35, together 44%. And
who use online shopping rarely is very less in number 4%. Since only 44% are mostly using
this, there is a wide space to fill and to make online shopping a great success
5%
Yes
No
95%
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Interpretation:
From the above it can be analyzed that 95% of respondents are aware of Flipkart and only 5%
don’t know about it.
Flipkart
17%
Amazon
8% 40%
Snapdeal
15%
Others
20%
Interpretation:
The above figure shows the analysis of customer’s choice of e-commerce website of which
40% respondents prefer Flipkart, 20% prefer Amazon while 15% and 8% prefer Snapdeal and
Other websites and there are some respondents who do not use e-commerce website.
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Fast Deliver
20% Availability
Interpretation:
One of the most efficient features in Flipkart is fast delivery when compared to other online
shopping websites. So, most of the customers prefer this website for shopping with the
perception of quick delivery (41%) and availability of product (29%), followed by easy
payment options (17%). And there is a scope of increasing after sales services and portal
features when comparing with other features.
10%
Yes
No
90%
Interpretation:
The above figure clearly shows that 90% of respondents feel that online shopping is safe affair
while 10% among them are still conservative and avoid shopping online due to fear quality of
product and payment options.
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How was your first experience with Flipkart?
100%
80%
60%
40%
20%
0%
Excellent Good Average Bad
Interpretation:
80% of the respondents show that they have excellent first-time experience with Flipkart while
15% said they have overall good experience. The remaining said that they had average and bad
experience while shopping first time with Flipkart.
5%
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Interpretation:
Above figure shows that respondents were asked that why they prefer shopping on Flipkart
over other shopping site:
50% respondent said Flipkart provided them better and prompt service
While 30% among them said that they get wide variety of option on Flipkart
Another 15% said that they get products in right price
While remaining 5% said that they get better quality products
Out of Stock
Delay in delivery
Faulty Product
9%
6% No issues
12% 6%
Interpretation:
In this survey, 30% of customers didn’t face any of those problems that mentioned, while 37%
of customers faced out of stock issue. This is one of serious issue faced by most of customers.
Since discounts and features are the one feature that most of the customers looking for and
when a good product with high discount is displayed in Flipkart plat form, customers brought
it as soon as they could. Thus, the products will be out of stocked.
Flipkart started notifying the customers about the product when the stock got available.
Payment issues and replacement issues are less in number (total 12%) since different payment
options like EMI options, card payments, Cash on delivery, Wallet payments are provided by
Flipkart and customers are satisfied with those.
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In case of replacement also only less issues are happened, thus shows most of them are satisfied
with that service. Delay in delivery happens because of shipping and courier service issues. It
is a problem with supply chain. Mostly it happens in the end part of the supply and in rural
areas where courier services are less active. Faulty product issue also happened to 8% of the
customers and one of the policies to overcome this issue is 30 days’ replacement policy of
Flipkart.
10%
Yes
No
90%
Interpretation:
In this survey, most of them (90%) are happy to recommend Flipkart to others like friends
and family. And this shows word of mouth publicity is successfully running and this is one of
the great advantages for Flipkart.
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FINDINGS
There is not much difference in gender for using online shopping.
90% Respondents feel safe in online shopping they have no fear and have started
shopping online while still 10% are hesitant of shopping online.
Even though Flipkart doesn’t have a big list of competitors but there are stores which
have grabbed attention of buyers namely Jabong, Amazon, eBay, Myntra.
Highly discounted product got out of stock quickly, since customer purchased it as on
as they could when they see high discount on good featured product.
The service provided by Flipkart are good and even more scope of development is there
for increasing the customer strength.
Customers feeling more secured when purchasing through Flipkart because of different
policies and services they have.
Flipkart users are not hesitant in recommending the site to any friend
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LIMITATION
It is not possible for any market study to make it accurate due to many handles in the
collection and computation of data. Some limitations of the study are listed below
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DISCUSSION
Parul Arora Mittal and her mother "tried their luck" by putting 20 pieces of jewellery on eBay.
All were sold in a week. Today, Mittal's small operation exports handmade, alloy-metal
jewellery, via eBay. "We never had the resources to set up a physical store," says the 30-year-
old. Now, she has no reason to. "Since then, I have never even thought of a physical store. The
online marketplace is my business place." And their numbers are increasing.
Amazon is the latest, launching its online marketplace in India in June. Globally, the world's
largest retailer earns 40 per cent of its 2012 revenues of $61 billion (Rs 3,66,000 crore) by
selling other people's goods.
Sensing the groundswell and business logic even Flipkart, India's largest online retailer,
started selling goods of other sellers — the online marketplace model — along with its
own goods. "It's the right time as we have now built the Flipkart brand," says its co-founder &
CEO Sachin Bansal, adding the online marketplace is the "right model for India". Such moves
by e-commerce players is opening up a world of possibilities for small entrepreneurs like
Chopra and Mittal.
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RECOMMENDATIONS
As still in India segment of population is untapped regarding the online shopping the
available online shopping stores can widen their market by getting into expansion
strategies.
There is also need to remove the fear in the minds the customers regarding the product
quality, durability and payments etc. in online shopping.
Delivery services can be improved mainly in rural areas by selecting appropriate courier
service which has services in customer area for dispatching an item.
Can include more coupon codes and gift vouchers for increasing the traffic of the
customers.
Out of stock items can made available as soon as possible and intimate the needed
customers.
Price will still be a factor as amazon being a huge company will use its economies of
scale to remove their competitors from the market; therefore, they need to be more
competitive on that aspect.
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CONCLUSION
Online shopping is the new mantra of this age and the people of India are applying this in
their lives to a great extent nowadays. According to a research report- State of E-commerce
in India by Commerce for ASSOCHAM, “India’s internet base, is already the third highest
in the world after China and the US, is growing nearly 40% every year.” The number of
shopping websites has increased and so has the total number of persons who prefer
shopping online.
The thorough study is based on the consumer behavior analysis which serves a great idea
regarding consumer perception when they go for online shopping. In order to satisfy
themselves consumer perceive many things before buying products and they will be
satisfied if the company meet their expectation. The Overall Brand Value of Flipkart is
good, but it is facing some tough competition from its global competitors like eBay and
Amazon. Talking about domestic market i.e. India, it is the most superior E-business portal
which is aggressively expanding & planting its roots deep into the Indian market & at the
same time shifting the mind-set of the people from going &shopping from physical store
to online stores, which is magnificent!
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BIBLIOGRAPHY
www.flipkart.com
www.wikipedia.org
www.ecommerce-land.com
www.sxccal.edu/msccs/ecommerce1.pdf
https://www.worldwidejournals.com/indian-journal-of-applied-research-
(IJAR)/recent_issues_pdf/2015/April/April_2015_1428502066__261.pdf
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ANNEXURE
1. Name: _____________
2. Age
o 16-24
o 25-34
o 35-49
o 50 or above
Gender
o Male
o Female
4. Occupation
o Business Person
o Housewife
o Salaried
o Student
o Always
o Often
o Sometimes
o Seldom
o Never
o Yes
o No
o Flipkart
o Amazon
o Snapdeal
o Others
o I do not use e-commerce website
o Fast delivery
o Availability
o After Sale service
o Easy Payment options
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9. Do you consider online shopping safe?
o Yes
o No
o Excellent
o Good
o Average
o Bad
o Wide Variety
o Price Efficient
o Better Service
o Better Quality
o Out of stock
o Payment Issues
o Replacement Issues
o Delay in delivery
o Faulty Product
o No Issues
o Yes
o No
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