Kaushki E-Co
Kaushki E-Co
Kaushki E-Co
CHAPTER 1 –
INTRODUCTION
CHAPTER 2 –
CONCEPTUAL FRAMEWORK (National and International Scenario)
Definition
Features Advantages and Disadvantages
Brief Introduction of Flipkart
CHAPTER 3 –
CHAPTER 4 –
CONCLUSIONS AND RECOMMENDATIONS
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CHAPTER 1
INTRODUCTION
INTRODUCING THE TOPIC –
1. E-COMMERCE
Although the terms e-commerce and e-business are often used
interchangeably, there are differences. E-commerce is the buying and
selling of goods and services on the Internet or other computer network.
Any brick and mortar store can become an e-commerce business by
adding a virtual storefront with an online catalogue. In most cases, e-
business refers exclusively to Internet businesses, but it may also refer to
any business that uses Internet technology to improve productivity and
profitability.
2. E-BUSINESS
Business transactions that involve the exchange of money are covered
by the term e-commerce. E-business includes all aspects of running a
business that sells goods and services, including marketing, earning and
retaining customers, procurement, developing business partners and
customer education. In order to be successful, e-commerce and e-
businesses must have quality storefronts that are simple to navigate and
peruse, with accurate and thorough catalogue information. E-business
became an extension of e-commerce to encompass all aspects of
businesses that function online. E-business involves e-commerce, but e-
Commerce does not cover all aspects of e-business.
3. BUSINESS MODELS E-Commerce or Electronics Commerce business
models can generally be categorized in the following categories:-
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Business - to - Business (B2B)
Business - to - Consumer (B2C)
Consumer - to - Consumer (C2C)
Consumer - to - Business (C2B)
Business - to - Government (B2G)
Government - to - Business (G2B)
Government - to - Citizen (G2C)
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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 - Business (C2B)
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 particular 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.
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Business - to - Government (B2G)
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 - Citizen (G2C)
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.
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Electronic Commerce endeavors to improve the execution of business transaction
over various networks.
4. Effective Performance
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.
6. Execution of Information
7. Incorporating Transaction
8. 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.
9. Reduction of Friction
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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.
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LITERATURE REVIEW
Several researchers have carried out studies in their effort to examine consumers
‘online buying behavior. For example, Bellman et al (1999) investigated various
predictors for whether an individual will purchase online. These authors concluded
that demographic variables, such as income, education and age, have a modest
impact on the decision of whether to buy online, whereas the most important
determinant of online shopping was previous behavior, such as earlier online
purchases. This is consistent with Forrester Research which proved that
demographic factors do not have such a high influence on technology as the
consumers ‘attitudes do (Modal, 2000). Stein field and Whitten (1999) suggested
that the combination of the Internet, plus physical presence, provides more
opportunities to capture business than the online-only presence, because they can
provide better pre-purchase and post-sales services to lower consumer transaction
cost and build trust in online stores. However, it is worth mentioning that beliefs
and attitudes that are found in the stage prior to the adoption of e-commerce are
different to those in the ―post-adoption‖ stage (Geffen et al, 2003; Venkatesh and
Brown, 2001; Yu et al, 2005.
OBJECTIVE OF STUDY
To find the factors that leads a website user to return to or recommend the
website Flipkart.com
To discover the key factors that influence online buying behaviour of
consumers in India
To identify who are the online shoppers in terms of demography
To understand the customer awareness on Flipkart.com
To determine the factors responsible for customer satisfaction
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LIMITATIONS OF THE STUDY
No research is complete without admitting the limitations that was faced while
conducting a study which will contribute to present learning. This study too like
the others have certain constrains which has been discussed below.
The study was restricted to Bangalore city only
The study is mainly concentrated on Flipkart.com
The sample of the size will be limited to time and resources
The information will be collected valid until there is no any technical change
or any innovation
The result is assuming that respondents have given accurate information
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RESEARCHMETHODOLOGY
AREA OF STUDY –
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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, its making very convenient
for the users to have a online shopping experience hassle free. 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.
• Cash on Delivery,
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• 30-day replacement policy,
• Free shipping
TYPE OF STUDY –
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Usingvarious survey reports conducted by Flipkart.com for the betterment of
Customer service.
METHOD OF ANALYSIS –
Comparison of situations using Graph Analysis and Percentage Analysis.
TABLES
Table 1:-Some household types and their affinity with b2c e-commerce.
Household type Affinity with b2c e-commerce
1. Young adults (< 30 Skilled, frequently using the Internet, eager to know new things but
years) with limited financial resources; not yet regular Internet shoppers,
but likely to be so in the future, especially when living in rural areas.
2. The elderly (> 60 Insufficient skills, sometimes with financial means and lacking
years) certainphysical abilities, but not at all time-pressed; hence
limitedinvolvement in b2c e-commerce, which may gradually
change over in the next two decades, especially when living in rural
areas.
3. Time-pressed Highly skilled, double-income, time-pressured households with
families children and some affinity with new technologies; potential or
present
Internet shoppers, especially when living in rural areas.
4. ‘Active, on-the-go- Highly skilled, high-income, time-pressured professionals with a
lifestyles’ highaffinity for new technologies; potential or present Internet
shoppers,especially when living in rural areas.
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and evaluate outcomes. capacity to fulfiII possibilities.
these needs. Efforts to enhance
customer
loyalty may reduce this
advantage, however.
Contract Negotiate the terms of a Shift of administrative
transaction, draft a costs from sellers to
preliminary contract, buyers. Online
anticipate possible future planning systems reduce
problems, and propose costs at his stage.
changes in the contract.
Control Monitor the realization of More information
the transaction process, available
compare with contract through online control
details. Deviations lead to systems, e.g. tracking-
haggling, adjustment of andtracing.
contracts, sanctions or In case of
third-party mediation. opportunistic behaviour,
e-commerce is not a
sufficient tool to
handleproblems.
During Both parties invest time, More and better
the effort and money in (interactive)
entire preventing information facilitates
process misunderstandings, ongoing communication.
mistakes and
misspecifications,
incomplete fine-tuning
or applications.
Source: adapted from Nooteboom (1994), pp. 32–33.
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CHAPTER 2
Initially, the founders had spent 4lakh 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 24
August 2012, Flipkart announced the completion of its 4th round of $150 million
funding from MIH (part of Naspers Group) and ICONIQ Capital. The company
announced, on 10 July 2013, that it has raised an additional $200 million from
existing investors including Tiger Global, Naspers, Accel Partners and Iconiq
Capital.
On November 2012, Flipkart became one of the companies being probed for
alleged violations of FDI regulations of the Foreign Exchange Management Act,
1999
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In July 2013, Flipkart raised USD 160 million from private equity investors, taking
the total to USD 360 million in its recent fund raising drive to build and strengthen
technology and bolster its supply chain.
In October 2013, it was reported that Flipkart had raised an additional $160
million from new investors Dragoneer Investment Group, Morgan Stanley
Investment Management, Sofina SA and Vulcan Capital with participation from
existing investor Tiger Global. With this, the company has raised a total $360
million in its fifth round of funding, the largest investment raised by an Internet
company in India, emulating InMobi’s $200 million investment from Softbank in
September 2011.
The company valued at approx.US$15.5 billion (May 2015), and plans to use the
capital raised to improve its technology and supply chain capabilities, enhance its
end user experience and for hiring.
India's e-commerce market was worth about $2.5 billion in 2009, it went up to
$6.3 billion in 2011 and to $14 billion in 2012. About 75% of this is travel related
(airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online
Retailing comprises about 12.5% ($300 Millionas of 2009).
India has close to 10 million online shoppers and is growing at an estimated 30%
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the
biggest categories in terms of sales.
India's retail market is estimated at $470 billion in 2011 and is expected to grow to
$675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%. According to
Forrester, the e-commerce market in India is set to grow the fastest within the
Asia-Pacific Region at a CAGR of over 57% between 2012–16.
INTERNATIONAL SCENARIO –
Flipkart’s reach has not yet reached the International market so we cannot
comment on its International Scenario but the management has plans of
extending its business to the South East Asian region.
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The Change from traditional commerce to E-
Commerce
For nearly 25 years, Dinesh Chopra lived with a locational handicap. Chopra sells
computer parts, electronic gadgets and accessories from his outlet in Nehru Place
— an assembly of several four-storey buildings. Although Asia's largest computer
market registers thousands of footfalls every day, only a fraction brave the filth
and dilapidation to climb up. "I'm on the first floor and that's my weakness," says
Chopra, director, Softek Surya. "I don't get regular walking customers."
But Chopra does not mind anymore. "Now, they land on my shop via online
marketplaces," he smiles. Softek is a registered seller on five online marketplaces,
including eBay and Flipkart. "About 35 per cent of my marketplace buyers are
from South India, who have never seen my shop," he says. His annual sales have
rocketed from Rs 14 crore in 2010-11 to Rs 60 crore now; and 70 per cent of it is
from online marketplaces, which are adding "muscle to business".
An example of
another kind of
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empowerment they are enabling is India Trend, which is in business only because
of online marketplaces. Seven years ago, 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
3,66,000crore) 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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The figure above clearly shows the meteoric rise of E-Commerce in Market
Capitalisation by Retail stores in the new Millenium.
It is all because of online shopping sites such as e-bay, FLIPKART, Amazon, etc.
This is a survey conducted to find out how E-Commerce has impacted businesses
in India. It clearly shows increase of an average of 70% in all the categories of
change, thus, emphasising on the fact of the Rise and Rise of E-Commerce, and its
Main Player, FLIPKART, in India.
CHAPTER 3
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CAPITAL ANALYSIS AND FINDING
This chapter aims obtain the objective of the study by critically
analyzing the qualitative datathrough thoroughly examining the
interviewee‘s responses and beliefs. This has beenachieved through
evaluating the most relevant responses by the participants. The data
has been analysed and discussed by comparing the comments made byth
e respondents with theliterature review keeping in mind the research
objective of the study. Thus, the rationale ofthis analysis is based on the
personal answers provided by the respondents.An appropriately
designed questionnaire was used to collect the primary data for the
study.The data for 100 respondents was organized systematically in
tables and graphs and then wassubjected to analysis using appropriate
statistical tools. The results of the analysis are presented in the following
section in order to assess the customer perception towards online
shopping on Flipkart.com in India. Here foranalyzing,we are considering
two factors. That is:
Demographical factors
Behavioural factors
Demography
1. Age Group:
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Table: Age wise respondents
45&
15-25 25-35 35-45 above Total
Percentage 63 24 12 1 100
Graph:Agewise respondents
2. Gender of Respondents
Table: Gender wise respondents
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Male Female Total
Responses 58 42 100
Percentage 58 42 100
According to demography profile, in this study 58% male and 42% female
respondents are part of my target population and they help me to fulfil my
questionnaire from different areaof Bangalore city. From these groups total
respondents are 100. So, according to the surveyresult, the male respondents are
more and can be told that they interested to shop online thanfemale, even though
both of them shop online.
3. Occupation
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Business
person Housewife Salaried Student Total
No. of Respondents 8 7 46 39 100
Percentage 8 7 46 39 100
In this survey, 46% of the respondents are salaried and 39% are students. So they
bothtogether 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 newservices which make them more comfort.
4. Annual Income:
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9&
0-3L 3-6L 6-9L above
No. of Respondents 60 23 13 4
Percentage 60 23 13 4
5. Educational Qualification
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Post SSC or Others
Graduate Graduate Equivalent (Phd)
No. of Respondents 63 36 0 1
Percentage 63 36 0 1
Behavioural factors:
6. Frequency of purchase from online
Table: online shopping usage
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Always Often Sometimes Seldom Never Total
Male 5 21 29 3 0 58
Female 4 14 23 1 0 42
Total 9 35 52 4 0 100
7. This survey is conducted on those people who do online shopping and are
aware of Flipkart.
So everyone answered ‘YES’ for Question no.7.
8. Modes of awareness about Flipkart
Table: Modes of awareness about Flipkart
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other
Websites
No. of
39 22 2 15 5 17 100
Respondents
Percentage 39 22 2 15 5 17 100
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Time Ever
No. of Respondents 17 45 32 6 100
Percentage 17 45 32 6 100
Here on this survey 17% are always choosing Flipkart for online shopping, while
45% areusing it occasionally. Hardly ever using members are very less, and 32%
are using it most ofthe time. Since more than half of them prefer Flipkart while
thinking of online shopping, itmeans branding had done successfully by them
either through advertisements, services or providing good experience to customers.
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Healthcare & Home &
Apparels & Books,Movies& Personal Kitchen
Electronics Accessories Music Statinary Care Items Total
No. of
Respondents 39 20 30 3 4 4 100
Percentage 39 20 30 3 4 4 100
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Options
No. of
Respondents 41 29 8 17 5 100
Percentage 41 29 8 17 5 100
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No. of Respondents 14 48 26 12 100
Percentage 14 48 26 12 100
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Percentage 37 6 6 12 8 30 1 100
Graph: Issues faced when purchased from Flipkart
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Percentage 95 5 100
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Analysis and Interpretation:
While analysing the rating of experiences, Flipkart provides a good and
excellent experiencesto 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%) rated4 & 5 as experience
CHAPTER 4
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CONCLUSIONSAND RECOMMENDATIONS
FINDINGS:
There is not much difference in gender for using online shopping.
Students and salaried persons are most frequent users of Flipkart.
Frequency of purchase for electronics, books and music, apparels
and accessories aremore in Flipkart.
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 on as they could when they see high
discount on good featured product.
The services provided by Flipkart are good and even more scope of
development isthere for increasing the customer strength.
Digital marketing techniques like search engine marketing, links
providing otherwebsite and advertisement also functioned well for
promotion of this website.
Fast delivery is one of best service Flipkart is providing.
Different payment options available in Flipkart made customers
more satisfied andcomfort for paying while purchasing product.
Customers feeling more secured when purchasing through Flipkart
because ofdifferent policies and services they have.
In comparison with competitors, Flipkart is charging free shipping
for the purchase of300 plus rupees, while others free ship the
service without any barrier.
Out of stock is the main issue faced by Flipkart.
Most of customers have good experience with Flipkart while
purchasing products.
Most of them are satisfied with the services of Flipkart and so that
they succeed inretaining the customers.
Advertising is an important way to have the brand and products
familiar toconsumersConvenience and time saving are two
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important factors that customer looking forwhile purchasing
through online.
RECOMMENDATIONS:
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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 ofscale to remove their competitors from the
market; therefore they need to be morecompetitive on that aspect.
CONCLUSION:
The thorough study is based on the consumer behaviour analysis which
serves a great idearegarding consumer perception when they go for
online shopping. In order to satisfythemselves consumer perceive many
things before buying products and they will be satisfiedif the company
meet their expectation.The Overall Brand Value of Flipkart is good, but
it is facing some tough competition from itsglobal competitors like Ebay
and Amazon. Talking about domestic market i.e India, it is themost
superior E-business portal which is aggressively expanding & planting
its roots deepinto 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.
BIBLIOGRAPHY:
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www.commodityindia.com
www.marketoperation.com
www.nextbigwhat.com
www.britannica.com
www.ecommerce-land.com
www.commodityindia.com
www.marketoperation.com
www.flipkart.com
WIKIPEDIA
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