k.m.E.

SocietyS

GM MOMIN WOMENS
COLLEGE
SUBMITTED BY:
NACHAN DURIA AQUEEL
SUBMITTED TO:
PROF. AHMED PATEL
ROLL NO: 13
CLASS: SYBMS
PROJECT REPORT ON:
CONSUMER BEHAVIOR ON
ONLINE SHOPPING WITH REFERENCE TO
FLIPKART.COM.

UNIT IINTRODUCTIONCHAPT

I N T R O D U C T I O N :
Consumer behaviour is the study of when, why, how, and where
people do or do not buy a product. It blends elements from
psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both
individually and in groups. It studies characteristics of individual
consumers such as demographics and behavioral variables in an
attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends,
reference groups, and society in general.
As a consumer we are all unique and this uniqueness is reflected in the
consumption pattern and process of purchase. The study of
consumer behavior provides us with reasons why consumers
differ from one another in buying using products and services. We
receive stimuli from the environment and the specifics of the marketing
strategies of different products and services, and responds to these
stimuli in terms of either buying or not buying product. In
between the stage of receiving the stimuli and responding to it,
the consumer goes through the process of making his decision.

ONLINE SHOPPING IN INDIA:

Though a development in the internet has been happening in
India, it took quite some time for e-commerce to have a stable
base in the country.Online shopping in India is gradually
increasing its pace. It could be that the slow internet penetration
is a hindrance, that online shopping is restricted only to huge
metro cities. However, today with more and more people being
cyber savvy, online shopping is gaining prominence amongst
Indians.Owing to certain technological challenges, you will find
only a small section of merchants involved in online purchases.
The main obstacles are low computer penetration in
India,amount of debit or credit card holders being few and certain
unfavorable tax regulations. Not many online shopping websites
in India offer the option of cash on delivery. Another important
trend is that, not all customers are willing to disclose their
financial statements and data online.These have been major
factors hampering the development and expansion of online
business.On the other hand, if analyzed from a wider perspective
online shopping holds a huge potential in India. Numerous
Ecommerce analysts and researchers are of opinion, that it has
the potential to reach about $100 billion or more in the
forthcoming years.
There are several enterprises, of both small as well as large scale,
that are willing to experiment with idea of B2C and B2B websites
on the internet in a huge way.Another factor that has been
holding people back from indulging in online shopping in India is
the inhibited mindset. People unwontedly give into ambiguous
beliefs of the products sold online not being of and faulty billing
systems.

Online shopping portals today practice stringent and

systematized billing processes and the products offered are of the
same quality kind to that of a mall. Sometimes, online shopping
websites offer attractive discounts and packages and display
products or gadgets that are otherwise not available in the
shopping marts. Given the present situation,where online
shopping in India developing gradually,people purchase objects
such as electronic gadgets, books, air and rail tickets, attires and
designer apparels, audio cassettes, CDs,computer
peripherals, online gifts,showpieces, paintings, gift vouchers, gift
articles and many others.
However, if developed and operated correctly there could be
other luxury as well as necessity products too that can be
purchased online.Most online shopping websites in India offer
detailed product information so that a customer can take time to
read and select the item that best fits his bill. A greater advantage
that online shopping has over conventional shopping is that
you can shop anytime from anywhere.

OBJECTIVES OF RESEARCH:
1)To understand the online shopping behavior of customers at
flipkart.com.
2)To study various factors influence online shopping at
flipkart.com.
3)To know customers level of satisfaction with regard to online
shopping at flipkart.com.
4) To examine whether customers prefer online shopping at
flipkart.com to physical stores.
5)To also examines consumer behavior when transacting online
at flipkart.com.

COMPANY PROFILE:
Flipkart is an Indian e-commerce company headquartered
in Bangalore, Karnataka. It was founded by Sachin Bansal and
Binny Bansal in 2007. In its initial years, Flipkart focused on
online sales of books but it later expanded to electronic goods
and a variety of other products.

HISTORY:
Flipkart.com was founded in year 2007 by Sachin Bansal and
Binny Bansal, both alumni of the Indian Institute of Technology
Delhi. They worked forAmazon.com before quitting and
founding their own company. Initially they used word of
mouth marketing to popularise their company. A few months
later, the company sold its first book on flipkart.comJohn
Woods' Leaving Microsoft to Change the World. Today, as per
Alexa traffic rankings, Flipkart is among the top 20 Indian Web
sites and has been credited with being India's largest online
bookseller with over 11 million titles on offer. Flipkart broke
even in March 2010 and claims to have had at least 100%
growth every quarter since its founding.
The store started with selling books and in 2010 branched out
to selling CDs, DVDs, mobile phones and accessories,
cameras, computers, computer accessories and peripherals,
and in 2011, pens & stationery, other electronic items such as
home appliances, kitchen appliances, personal care gadgets,
health care products etc. Further in 2012, Flipkart added A.C,
air coolers, school supplies, office supplies, art supplies & life
style products to its product portfolio. As of today, Flipkart
employs over 4500 people.

PRODUCTS:
Flipkart started with selling books. In 2010, they added to their
catalogue media (including music, movies and games) and
mobile phones and accessories.
In 2011, product launches included cameras, computers, pens
& office supplies, computer accessories, home and kitchen
appliances, personal care, health care, gaming consoles, audio
players and televisions. In 2012, product launches includes
health & beauty products, Life style products which includes
watches, belts, bags & luggage.
Flipkart is currently the only authorised online reseller
of iPods in India.
BUSINESS RESULTS:
Flipkart reported sales were 40 million in 20082009, 200
million in 20092010 and 750 million for 20102011.In FY
20112012, Flipkart is set to cross the 5 billion (US$100
million) mark as Internet usage in the country increases and
people get accustomed to making purchases online.On
average, Flipkart sells nearly 20 products per minute[ and is
aiming at generating a revenue of 50 billion (US$1 billion) by
2014.

MISSION,VISION AND OBJECTIVE FLIPKART:

MISSION:
PROVIDING DELIGHTFUL CUSTOMER
EXPERIENCES.
VISION:
TO BECOME AMAZON OF INDIA.

OBJECTIVE:
MAKING BOOKS EASILY AVAILABLE TO
ANYONE WHO HAS INTERNET ACCESS.

RESEARCH METHODOLOGY:
RESEARCH DESIGN:Describtive research.
NATURE OF STUDY:Study involves qualification of data,cross
tables and charts.
TYPE OF QUESTIONNAIRE:Structured type of questionnaire
with limited probing questions.
TYPE OF QUESTION:Limited probing questions with fixed
responses were use to analyze the consumer behavior.
TYPE OF ANALYSIS:Quantitative type.
SOURCES OF INFORMATION-SECONDARY DATA:Internet.
PRIMARY DATA:Interview method.
RESEARCH TECHNIQUE:Survey.
CONTACT METHOD:Personal interview.
RESEARCH INSTRUMENT:Questionaire
SAMPLING METHOD:Convenience sampling method.
SAMPLE SIZE:30

Q1. TO KNOW THE AGE OF THE REPONDENT?

Response
18-23
25-30
30-35
35-40

No of Respondent
25
3
2
1

Percentage
83%
10%
6%
3%

3%
6%
10%
18-23
25-30
30-35
35-40
83%

INTERPRETATION: The above diagram shows us the

percentage in the age of respondents. As it shows that from age
18-23 the number of respondents are83 % and from age of 2530 it is 11 % and from 30-35 it is 6% and 35-40 it is 3% this is
the above data which is shown by the this pie chart.

Q2. TO KNOW THE MONTHLY INCOME OF THE

REPONDENTS?
Response
Rs10000-Rs15000
Rs15000-Rs25000
Rs25000-Rs30000
More than
Rs35000

No of Respondent
17
7
4
2

Percentage
55%
25%
15%
5%

5%
15%

25%
Rs10000-Rs15000
Rs15000-Rs25000
Rs25000-RS30000
More than Rs35000

55%

INTERPRETATION:
This above graph shows the percentage of monthly income of
the different respondents, and it show that between 1500025000 income respondents have buyed more online products
because most of them are students and they use to buy
books,music Cds, mobiles, laptops.

Q3 TO KNOW WHETHER RESPONDENTS HAVE THEIR

OWN INTERNET CONNECTION.
Response
YES
NO

No of Respondent
26
4

13%
87%

13%

Percentage
87%
13%

Yes
No

INTERPRETATION:
This graph show us the percentage of respondents who have
their own internet connections, its shows that 87% of
respondents have their own internet connections and 13%
people dont have their internet connection.

Q.4TO KNOW HOW OFTEN RESPONDENT SHOP

FROM FLIPKART.COM.
Response
Rarely
Sometimes
Often
Very often

No of Respondent
6
15
6
3

Percentage
20%
50%
20%
10%

20%

Rarely

50%

Sometimes

20%

Often

10%

Very often
0%

10%

20%

30%

40%

50%

INTERPRETATION: The above diagram shows the percentage of

respondent who shop at the flipkart.com.20% of the respondent rarely
shop whereas 50% of the respondent shop sometimes,the percentage
of respondent who shop often and very often is 20% and 10%
respectively.

Q5 TO KNOW WHAT MOTIVATES PEOPLE TO DO ONLINE

SHOPPING AT FLIPKART.COM?
Response
Easy payment
No hidden cost
Security
All of these

No of Respondent
15
2
2
11

Percentage
50%
5%
5%
40%

50%
50%
40%

40%

30%
20%
10%

5%

0%
Easy Payment

No hidden cost

5%

Security

All of these

INTERPRETATION :This graph shows us what motivates the

people to buy at flipkart.com, as from above result we found out
that easy payment is the main thing which motivates the people
to buy product online at flipkart.com.

Q6TO KNOW WHICH PRODUCTS RESPONDENTS BUY

OFTEN AT FLIPKART.COM?
Response
Books
CDs
Mobiles
Any Other

No of respondent
15
5
8
2

Percentage
50%
20%
30%
10%

Any Other

Mobiles

CDs

Books

0%

10%

20%

30%

40%

50%

60%

INTERPRETATION:
The above graphs shows that 50% of the respondents buy books
at flipkart.com whereas 20%,30% and 10% of respondents use
to buy CDs,mobiles and other product respectively.

Q7ONLINE SHOPPING AT FLIPKART.COM IS BETTER

THAN PHYSICAL SHOPPING?
Response
Strongly Agree
Agree
Neither Agree nor
Disagree
Disagree
Strongly Disagree

No of Respondent
0
1
8

Percentage
0%
3%
25%

17
4

54%
18%

0% 3%
18%

Strongly Agree
25%

Agree
Neither Agree nor
Disagree

54%

Disagree
Strongly Disagree

INTERPRETATION: After analyzing, the above graph shows

that the people are against of that online shopping is better
than physical store. The percentage of people who have agreed
upon the statement is only 3% and the people who have not
agreed is 54%. The people who are neutral is 25% whereas
people who are strongly disagree is 18%.

Q8TO KNOW WHICH PAYMENT OPTION RESPONDENTS

CHOOSE WHILE ONLINE SHOPPING AT FLIPKART.COM?
Response
Cash on delivery
Debit card
Credit Card
Any other

No of Respondents
27
1
1
1

Percentage
90%
3%
3%
3%

100%
80%
60%
40%
20%
0%
Cash on
delivery

Debit card

Credit Card

Any other

INTERPRETATION:
This diagram shows that 90% people uses Cash On Delivery to
pay their payments. The remaining 5% uses debit card, credit
card, and other.

Q9TO KNOW WHETHER RESPONDENTS ARE SATISFIED

WITH THE TERMS OF DELIVERY OFFERED BY
FLIPKART.COM?
Response
Yes
No

No of Respondents
21
9

Percentage
70%
30%

30%
YES
NO
70%

INTERPRETATION: The above diagram shows that 70% of

people are satisfied with the terms of delivery while 30% are
dissatisfied.

Q10 DO YOU THINK ONLINE SHOPPING AT FLIPKART.COM

IS SECURE?
Response
Yes
No

No of Respondents
21
9

Percentage
70%
30%

30%
70%

30%

YES
NO

INTERPRETATION:The above diagram shows that 70% of people

thinks that online shopping at flipkart.com is secure while remaining
30% thinks it is insecure.

Q11TO KNOW HOW RESPONDENT WILL RATE

FLIPKART.COM AS A WEBSITE?
Response
Excellent
Very good
Good
Average
Bad

No of Respondents
3
9
15
3
0

Percentage
10%
30%
50%
10%
0%

50%
50%
45%
40%
35%

30%

30%
25%
20%
15%

10%

10%

10%
5%

0%

0%
Excellent

Very GooD

Good

Average

Poor

INTERPRETATION:50% of the respondent rate flipkart.com as good

whereas 0% of the respondent rate it as bad.30% of the respondent
rate it as very good and 10% of the respondent rate it as average.

Q12TO KNOW WILL RESPONDENTS SUGGEST OTHERS

TO SHOP FROM FLIPKART.COM?
Response
YES
No
CANT SAY

No of Respondents
21
4
5

Percentage
70%
12%
15%

15%
12%
Yes
70%

No
Cant say

INTERPRETATION:The above diagram shows that 70% of the people

will suggest and 15% of the people will not suggest others to shop
from flipkart.com,and 15% of the people cant say anything.

FINDINGS:
*Most of the time youngster who are from the age of 18-23 shops a
lot online at flipkart.com rather than other age limit.
*87% of the people who prefer online shopping at flipkart.com have
there own internet connection.
*50% of the people shops sometimes at flipkart.com.
*Easy payment motivates people to shop online at flipkart.com.
*50% of the people buy books at flipkart.com.
*50% of the people disagree on the statement that online shopping
at flipkart.com is better than physical shopping.
*90% of people use Cash on Delivery option for payment at
flipkart.com.
*30% of the people are dissatisfied with the terms of delivery offered
by flipkart.com.
*70% of the people thinks that online shopping at flipkart.com is
secure.
*50% of the people rate flipkart.com as good whereas 0% rate it as
bad.
*70% of the people will suggest others to shop from flipkart.com.

CONCLUSIONS:
Increased Internet penetration, a hassle free shopping
environment and high levels of Net saviness see more and more
Indians shopping online at flipkart.com.The cash on delivery
model adopted by flipkart has proven to be great significance
since the credit card and net banking penetration is low in
India.
Variety,quick service and reduced prices are three significant
ways in which shopping at flipkart.com has influenced people.
But at the same time the flipkart need to reduce the risks
related to consumer incompetence by various tactics. Through
privacy and security policies,flipkart website designers are
doing there best to put an end to unethical practices.

Recommendations
Flipkart should make to their payment more transparent and
terms of delivery more flexible, and as people are coming on
their site and they are buying their products, so flipkart should
give more ease and discounts to their customers so that they
can visit again and again to their site. Moreover, feedback of an
online buyer should be captured to identify flaws in service
delivery. This can be done through online communities and
blogs that serve as advertising and marketing tools and a source
of a feedback to enterprises.
Following implications should be followed:
*Discount price
*Super fast transactions
*Promptness in Delivery
*High Security
*Focus on customer delight.

APPENDISES

NAME:

QUALIFICATION:
OCCUPATION:
Q1.What is your age?
A] 18 23

B] 25 30

C] 30 35

D] 35 40

Q2.What is your monthly income?

A] RS10, 000 15,000

B] RS15, 000 25,000

C] RS 25,000 30,000

D] More than Rs 35,000

Q3.Do you have your own Internet connection?

A] YES

B] NO

Q4.How often do you shop from Flipkart.com?

A] Very often

B] Often

C] Sometimes

D] Rarely

Q5.What motivates you to buy product online at flipkart.com?

A] Easy payment

B] No hidden cost

C] Security

D] All of these

Q6.Which products do you buy often at flipkart.com ?

A] Books

B] CDS

C] Mobiles

D] Any other

Q7.Online shopping at flipkart.com is better than physical shopping?

A] Strongly Agree

B] Agree

C] Neither Agree not Disagree

D] Disagree

E] Strongly Disagree

Q8.Which payment option do you choose while online shopping at

flipkart.com?
A] Cash on delivery

B] Debit card

C] Credit card

D] Any other

Q9.Are you satisfied with the terms of delivery offered by flipkart.com?

A] YES

B] NO

Q10.Do you think online shopping at flipkart.com is secure?

A] YES

B] NO

Q11.How will you rate flipkart.com as a website?

A] Excellent

B] Very good

D] Average

C] Good

E] Bad

Q12.Will you suggest others to shop from flipkart.com?

A] Yes

B] NO

Thank you for filling the questionnaire and giving your valuable time to us.