Amazon Project
Amazon Project
DECLARATION
I hereby declare that the field work entitled of <A Study on the level of Customer
guidance of Ms. Mariyam Chandni and this project work is submitted in the partial
Anmol Agarwal
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ACKNOWLEDGEMENT
In order to accomplish a task, facts, situations and persons integrate together to form a
background. <Greatness lies in being grateful and not in being great.= This research
I would like to express my deep sense of gratitude to the respectable guide distinguished
personalities for their precious suggestions and encouragement during the project.
The experience which is gained by me during this project is essential for me at this turning
point of my career.
I am thankful to my project guides Ms. Mariyam Chandni for kind support and
supervision under whose kind & constant guidance I had the opportunity to expand my
horizons and view the various problems from different prospective. I am also thanking her
for sparing her valuable time to listen my problems and difficulties faced by me during
Anmol Agarwal
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PREFACE
opportunity to work in a truly professional environment where team work score over
individual effort, where there is a helpful atmosphere. A well planned, properly executed
and evaluated training helps a lot in inoculating good work culture. The project
City= has been made to facilitate effective understanding about the marketing aspects.
The project research has provided me an opportunity to gain practical experience, which
summarize all our experience and knowledge acquired up till now, in this report. This
project is a keen effort to obtain the expected results and fulfill all the information
required.
At the end annexure and bibliography are given for effective understanding.
TABLE OF CONTENT
Sr. No. Content Page No.
1. Introduction 1-2
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6. Limitations 25
7. Findings 26-27
8. Conclusion 28
9. Recommendations 29-30
10. Bibliography 31
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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 E-commerce first evolved. Scholars
and practitioners of electronic commerce constantly strive to gain an improved insight into
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 andalso 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. Many experts are optimistic about the prospect of online business.
A brand is the idea or image of a specific product or service that consumers connect with,
by identifying the name, logo, slogan, or design of the company who owns the idea or
image. Branding is when that idea or image is marketed so that it is recognizable by more
and more people, and identified with a certain service or product when there are many
other companies offering the same service or product. Advertising professionals work on
branding not only to build brand recognition, but also to build good reputations and a set
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reputations as well as expand beyond the original product and service, and add to the
revenue generated by the original brand. Initially, Branding was adopted to differentiate
one person's cattle from another's by means of a distinctive symbol burned into the
animal's skin with a hot iron stamp, and was subsequently used in business, marketing and
advertising.
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COMPANY PROFILE
Amazon was founded in 1994, spurred by what Bezos called "regret minimization
framework", his effort to fend off regret for not staking a claim in the Internet gold rush.
"In his typically analytic way, Bezos cast his decision in what he calls the
"regretminimization framework." He imagined that he was 80 years old and looking back
at his life. And suddenly everything became clear to him. When he was 80, he'd never
regret having missed out on a six-figure Christmas bonus; he wouldn't even regret having
tried to build an online business and failed. "In fact, I'd have been proud of that, proud of
myself for having taken that risk and tried to participate in that thing called the Internet
that I thought was going to be such a big deal. It was like the wild, wild West, a new
frontier. And I knew that if I didn't try this, I would regret it. And that would be
inescapable."
abandoned for sounding like "cadaver"; while the largest brick-and-mortar bookstores and
mail-order catalogues for books might offer 200,000 titles, an on-line bookstore could
offer more. Bezos renamed the company "Amazon" after the world's biggest river. Since
2000, Amazon's logotype is an arrow leading from A to Z, representing the desire to sell
many products.
The domain amazon.com attracted at least 615 million visitors annually by 2008 according
Amazon's initial business plan was unusual: the company did not expect a profit for four
to five years; the strategy was effective. Amazon grew steadily in the late 1990s while
other Internet companies grew blindingly fast. Amazon's "slow" growth provoked
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stockholder complaints: that the company was not reaching profitability fast enough.
When the dot-com bubble burst, and many e-companies went out of business, Amazon
persevered, and, finally, turned its first profit in the fourth quarter of 2002: U.S. $5 million,
just 1¢ a share, on revenues of more than U.S. $1 billion, but the profit was symbolically
important.
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• To study the Consumer buying behavior towards online shopping in Lucknow city
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RESEARCH METHODOLOGY
Research Design
available for the collection, measurement and analysis of data. A research design calls for
The design of the research study is based on the purpose of the study.
<Research means different things to different people= and the intention behind it are to
investigate innumerable data, theories, experiences, concepts and law. <The procedural
framework within which the research is conducted= is the definition of research
methodology. The two broad and distinct approaches to social research cover the
Quantitative and Qualitative methods of enquiry.
The quantitative paradigm on the other hand intends to gain a deeper understanding,
knowledge and insight into a particular situation or phenomenon, by providing answers to
questions of >how?? rather than >what??. Unlike qualitative research which occurs in
natural settings, quantitative research is where hypotheses are established.
Data collection
The data required for understanding will be collected from various online customers. In
order to conduct the study digital survey was conducted through facebook and e-mail. And
those responses are collected in a spreadsheet and further analysis was done. The data
collection method in this particular research comprises of two forms: namely primary and
secondary data. One needs to be careful while using secondary data as maybe the collected
data may be biased as the collector of that original data might have highlighted only a
partial picture or another aspect may be that data may be quite old and also the data quality
could be unknown.
Primary data
<Data collected specifically for the research project undertaken= is the definition of
primary research as provided by Saunders et.al (2003: pp. 486).
Primary data is generally originated by any researcher to address any specific problem or
issue at hand, where the only drawback is that it can be expensive and timeconsuming.
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The various ways of gathering primary data is through surveys, focus group and
observations.
In this study, the primary data is collected through well-formed questionnaire with the
help of a digital survey. The questionnaire consists of quantitative and qualitative multiple
choice questions and the respondents are asked to choose the one choice which suits them
the best amongst the multiple choices.
Secondary Data
Prerequisite to the collection of primary data is a careful scrutiny of the existing secondary
data (Malhotra, 2005). The Data that is collected from existing journals, reports and
statistics from private and public institutions are called Secondary data. For this specific
study the collection of secondary data was done primarily from marketing journals already
available on this topic. Secondary data helps the author to comprehend the perception of
Indian consumers on online shopping.
Thus the study carried out has analyzed the primary data with the rationale and validation
of the present secondary data.
Sample technique
Choosing a study sample is an important step in any research project since it is rarely
efficient, practical, or ethical to study whole populations. In this study the sampling
strategy used is convenient sampling. The sample size is 100. A small part of something
intended as representative of the whole, or a subset of a population. In this research simple
random sampling is being used.
Data collection
The data collection would be:
PRIMARY DATA: Questionnaire
SECONDARY DATA: Journals, Internet, newspaper etc.
Sample design
Online customers of Lucknow city are included under this research and tell their
satisfaction level.
Data source
Both Primary and Secondary source of data would be used .The major type of information
is used from primary data.
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questionnaire was assembled, stored, selected and analyzed. The analysis of the data is
as under here-
Demography:
1. Gender of Respondents:
Table 4.1: Gender wise respondents
Male Female Total
Responses 58 42 100
Percentage 58 42 100
Gender
70
58
60
50
42
40
30 Responses
20
10
0
Male Female
Interpretation:
According to demography profile, in this study 70 % male and 30% female respondents
are part of my target population and they help me to fulfill my questionnaire from different
area of Bangalore city. 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.
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2. Age Group:
Table 4.2: Age wise respondents
15 -25 25 -35 35 - 45 45 & above Total
No of respondents 63 24 12 1 100
Percentage 63 24 12 1 100
Age Group
70 63 63
60
50
40
No of respondents
30 24 24
Percentage
20
12 12
10
1 1
0
15 -25 25 -35 35 -45 45 & above
Interpretation:
Overall result shows that between all of them the respondents who has age limit exceeds
above 45 years people are not familiar to shop online on my target population.
3. Occupation:
Table 4.3: Occupation wise respondents
Business Housewife Salaried Student Others total
person
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Sales
50% 46%
45%
40%
35%
29%
30%
25%
Sales
20%
15%
10%
10% 8% 7%
5%
0%
Business Housewife Salaried Student Others
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.
4. Educational Qualification:
Number of respondents 63 36 0 1
Percentage 63 36 0 1
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Educational Qualifications
70 63 63
60
50
40 36 36
30 Number of respondents
20 percentage
10
0 0 1 1
0
Graduate post SSC or PhD
graduate Equivalent
Interpretation:
All of them in this survey are graduate and above qualified peoples only. Among these
63% are graduates, 36% are post graduates and one person is PhD.
5. Annual Income:
Table 4.5: Income wise respondents
0- 3 L 3-6L 6-9L 9 & above
Number of respondents 60 23 13 4
Percentage 60 23 13 4
Annual Income
4%
13%
0- 3 L
23% 3-6L
60%
6-9L
9 & above
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Interpretation:
Since 39% of this survey is students most of them are of 0-3L income range, ie 60%.
23% of them are in 3-6Lincome range, 13% in 6-9L and 4% is 9 & above.
Behavioural factors:
This survey is conducted on those people who do online shopping and are aware of
Amazon.In. So everyone answered >yes? for those two questions.
Total 9 35 52 4 0 100
25 23
21
20
14
15
10
5 4
5 3
1 0 0
0
Always Often Sometimes Seldom Never
Male Female
Interpretation:
More than half of them use online shopping sometimes, ie 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
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using this, there is a wide space to fill and to make online shopping a great success. And
there is not much gender difference in online shopping, which means both males and
females enjoying online shopping and its benefits.
Percentage 39 22 2 15 5 17 100
No: of respondents
45
40
35 39
30
25
20
15 22
10 15 17
5 2 5
0
No: of respondents
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Interpretation:
Most of them are awareabout Amazon.In through word of mouth (39%) followed by
television and online advertisements (22%). Customers got awared through blog
recommendations (2%) and promotional e-mails (5%) are very less in number.
This means a good communicaton about Amazon.In is going on through friends and
families, which proves that word of mouth strategy by them is the most successful means
of making people aware about their products. Success can only be gained through
delighted customers who act as advocates for their products and there is a wide scope of
other digital advertisement techniques like search engine marketing, email- marketing,
providing links and blog recommendations inorder to make more customers.
45
32
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50
45
40
35
30
25
No: of
respondents
20
15
10 17
5
0
Everytime Occasionaly Most of the timeHardly ever
Interpretation:
Here on this survey 17% are always choosing Amazon.In for online shopping, while 45%
are using it occasionally. Hardly ever using members are very less, and 32% are using it
most of the time. Since more than half of them prefer Amazon.In while thinking of online
shopping, it means branding had done successfully by them either through advertisements,
services or providing good experience to customers.
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Percentage 39 20 30 3 4 4 100
No: of respondents
45
40
35 39
30
25 30
20
15 20
10
5 3 4 4
0 No: of respondents
Interpretation:
Electronic items, Books and Stationery, Apparels& Accessories, cameras, watches and
others (bags, belts, etc.) are purchased more. 39% of respondents are preferred to buy
Electronics items followed by Books and Stationery (30%) and Apparels and Accessories
(20%). Books & stationery and electronics items are more famous among the students and
that may be the reason for large purchase of those items from Amazon.In.
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Responses 31 29 8 17 5 10 100
Percentage 31 29 8 17 5 10 100
Responses
35
30
25
20
15
Responses
10
5
0
Fast delivary Availability After sale Easy Portal Replacement
service Payment Features service
options 17
Interpretation:
One of the most efficient features in Amazon.In 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.
11) Rating of services on Amazon.In (in a scale of Excellent, Good, Average, below
average, Poor)
Table 4.12: Rating of Amazon.In services
Excellent Good Average Below Average Poor
Cash on delivery 46 45 5 2 2
30 days replacement policy 23 55 20 2 0
EMI options 21 48 25 5 1
Free shipping 35 34 17 12 2
Graph 4.12: Rating of Amazon.In services
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60
40 Cash on delivery
30 days replacement policy
20
EMI options
0
Free shipping
Excellent Good Average Below Poor
Average
Interpretation:
46% of respondents are rated excellent for cash on delivery service, while for 30 days
replacement policy 55% rated good and 23% rated excellent. For EMI options 48% rated
good and 21% rated excellent, and for free shipping 35% rated excellent.
While analysing the data, customers have more interest in two services of Amazon.In:
That is,
30 days replacement policy and EMI options.
Since Amazon.In is providing 30 days replacement policy for all the products in the
platform. And this combined mix service increased the customer trust.
In case of EMI options, Amazon.In is the only site which accepts all credit cards and thus
it provides a better payment options to the customers.
Cash on delivery is a compactable service that provided to the customers and they are
much satisfied on that service also. Even some rated less for this service, may be because
of less customised experience on cash on delivery.
In case of free shipping, Amazon.In provide this service for total purchase of rupees 300
and above only. So it may affect some of the customers who purchase less price products
frequently.
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No of Responses 37 6 6 12 8 30 1 100
Percentage 37 6 6 12 8 30 1 100
35
30 30
25
20
15
12
10
5 8
6 6
1
0
No of Responses
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 Amazon.In
platform, customers brought it as soon as they could. Thus the products will be out of
stocked.
Amazon.In started notifying the customers about the product when the stock got
available.
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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
etc… are provided by Amazon.In and customers are satisfied with those.
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 Amazon.In.
No: of Responses
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Interpretation:
In this survey, most of them (95%) are happy to recommend Amazon.In 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 Amazon.In.
No of 7 11 16 49 17 100
Responses
Percentage 7 11 16 49 17 100
50
40
30
20
10 49
0
1 2 3 16 45 17
11
7
No
of
Responses
Interpretation:
While analysing the rating of experiences, Amazon.In provides a good and excellent
experiences to most of the customers.
Mode of given data: 4 & Median of given data: 4
49% of customers rated 4 as the experience and more than half of the population (66%)
rated 4 & 5 as experience.
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0
Yes No
No: of responses
Interpretation:
81% of the population is satisfied with the service of Amazon.In. This helps Amazon.In
to retain the customers and also shows that the branding and marketing techniques of
Amazon.In also got succeed.
The problem faced during the research and after the data collection were
1) Time constraint- since the time span for the thesis was only three months an in
2) Sample size- the sample size of the study is only 100 which do not give a
comprehensive result. The conclusion of the study may not have resulted to an
3) Bound to only Lucknow- the other limitation of the study was it was limited to
only the Lucknow which constitutes of a different set of samples. The buying
behavior of an individual varies from place to place. It is considered that the area
between Hazratganj to Gomti Nagar has an affluent set of families hence their
buying behavior towards online shopping be different from the samples that stay
beyond Hazratganj
4) Questions left blank- certain question have been left blank which does not allow
an accurate analysis.
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FINDINGS
Frequency of purchase for electronics, books and music, apparels and accessories
Word of mouth was more influential in promotion as many people were made aware
by their friends and family when customers recommend this website to them.
Highly discounted products got out of stock quickly, since customers purchased it
as soon as they could when they see high discount on good featured product.
The services provided by Amazon.In are good and even more scope of
Digital marketing techniques like search engine marketing, links providing other
website and advertisement also functioned well for promotion of this website.
Different payment options available in Amazon.In made customers more satisfied and
In comparison with competitors, Amazon.In is charging free shipping for the purchase
of 300 plus rupees, while others free ship the service without any
barrier.
Most of customers have good experience with Amazon.In while purchasing products.
Most of them are satisfied with the services of Amazon.In and so that they succeed in
Advertising is an important way to have the brand and products familiar to consumers.
Convenience and time saving are two important factors that customer looking for while
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CONCLUSION
The thorough study is based on the consumer behaviour 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
The Overall Brand Value of Amazon.In 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!.
Be very focused on consumers and build amazing experiences for the customers.
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RECOMMENDATIONS
Amazon.In has successfully placed itself into the prospects mind making it the
India?s largest online store with huge range of products. But it still needs to work
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.
rate, so Amazon.In can target more & more cities i.e not only tier 1 & 2 but also
tier 3 & 4 cities, which will help generate stronger customer base & more
revenues.
Should clearing focus on the Growing Online Apparel business & it can diversify into
portals.
User Experience: Portal should continuously aim to work to improve the user
experience by adding more & more innovative features in the website like
virtually shopping basket, virtual trial rooms. In this competitive world to
differentiate via user experience, the ultimate winner will be the Indian online
consumer.
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Logistics & Supply Chain: can continuously aim to reduce the delivery time cycle.
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
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BIBLIOGRAPHY
BOOKS:
Assael, Henry. (1984.) <Behavior and Market Action=. Boston, Massachusetts:
Kent Publishing Company,
Belch, G.E., & Belch, M.A. (2001). Advertising and Promotion: An integrated
Marketing Communications Perspective (5th ed.). Boston: Irwin/McGraw- Hill.
Cooper, Donald R. and Schindler , Pamela S. (1999), Business Research
Methods, 6 Tata McGraw-Hill Publishing Company Limited, New Delhi, India.
Creswell, J. W. (2003). <Research Design: Qualitative, Quantitative, and Mixed
Methods Approaches=. Thousand Oaks, CA, Sage.
Easterby-Smith, M., Thorpe, R. & Lowe, A. (2002), Management Research 2nd
edition, London: Sage.
Remenyi, D., Williams, B., Money, A. and Swartz, E. (1998), <Doing Research
in Business and Management=, Sage Publications, London.
HOT BARGAINS: TIPS TO FIGURE OUT TRAPS FROM THE REAL VALUE DEALS
SUSHMITA CHOUDHURY AGARWAL, ET Bureau Apr 22, 2013 (The
Economic Times)
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QUESTIONNAIRE
NAME :
OCCUPATION :
COMPANY NAME :
DESIGNATION :
ADDRESS :
TEL. NO. :
1. Gender
• Male
• Female
• 16-25
• 25-35
• 35-50
• 50 or above
• Salaried Professional
• Housewife
• Business
• Student
• Unskilled
• Others, please specify ________
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• Post graduate
• Graduate
• Higher secondary school certificate
• High School certificate
• Less than 12 years in school
• Others (PHD)
• Rs.3 to Rs.5 lakhs per annum Rs.6 to Rs.9 lakhs per annum
• Rs.8 to Rs.10 lakhs per annum
• More than 10 lakhs per annum
• Always
• Often
• Sometimes
• Seldom
• Never
7. In which mode you aware of about Amazon.In?
• Word of mouth
• Advertisement(TV ,Newspaper etc)
• Blogs recommendation
• Links from other website
• Promotional mails
• Serch engine(Google,Yahoo etc)
• Everytime
• Most of the time
• Occasionally
• Veryless
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• Electronics
• Apparels & accessories
• Books/ Movies & music
• Stationary
• Helthcare
• Kitchen & home items
• Digital products
10. Why you use Amazon.In as compaired to any other online marketing website?
• Fast delivery
• Availability
• After sale service
• Easy payment
• Portal feature
• Replacement service
• Cash on delivary ( )
• 30 days replacement policy ( )
• EMI option ( )
• Free shipping ( )
• Replacement issue
• Delivary delay
• Faulty product
• No issue
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• Other
14. How much you rate service of Amazon.In between 1 to 5 where- 1 – lowest &
5 – highest
• 1
• 2
• 3
• 4
• 5
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