Summer Internship Project Report

On

“A Study on Digital Marketing Strategy

of Amazon”

Submitted By:
Name: Ritesh Kumar Panda
Roll No: 13
Registration no: P111913
PGDM [2019-2021]

(A project report submitted to ASTRAL INSTITUTE OF

MANAGEMENT STUDIES for partial fulfillment of the requirements
for the award of Degree of PGDM Program)

Under the guidance of

Internal Guide:
NIRAJANA DAS (Asst. Professor)

ASTRAL INSTITUTE OF MANAGEMENT

Plot No- 346, 2725, Info city Ave, Sishu Vihar, Patia, Bhubaneswar, Odisha 751024

1
 Declaration

I am Ritesh Kumar Panda a Bonafede student of Astral Institute of

Management Studies, pursuing PGDM, do hereby declare that the
study entitled “A Study on Digital Marketing Strategy of Amazon “is
my authentic work, I have completed my study under the guidance of
Nirajana Das, ASTRAL INSTITUTE OF MANAGEMNT,
Bhubaneswar. All the data furnished in this project report are authentic
and genuine and this report neither full nor in part has ever been
submitted for award of any other degree.

PGDM (2019-2021)
College Roll No: - 13
Registration No: p111913

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 Internal Guide Certificate

This is certified that Mr. Ritesh Kumar Panda, a student of PGDM of

Astral Institute of Management, Bhubaneswar has successfully
completed her summer Internship Project on the topic of “A Study on
Digital Marketing Strategy of Amazon”. He has worked on the
Summer Project and her performance during the project was extremely
satisfactory.

Signature
Nirajana Das
Dt:

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 Contents
Chapter-1 Page No

Background of the study

Rationale of the study

Objectives of the Study

Scope of the Study

Research methodology

Chapter -2
Company Profile

Chapter-3
Theoretical Background

Chapter-4
Data Analysis and Interpretation

Chapter-5
Findings

Suggestion

Conclusion

Bibliography

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 Chapter-1

BACKGROUND OF THE STUDY

For the last two-decade Amazon.com has been serving customer

worldwide. Amazon.com was founded by Jeff Bezos back in 1995.The
founder’s vision was to build a virtual shopping place for book lovers.
Amazon.com brings the world largest book store to the door step of the
people around the world. All people has to do is search and select the
desired book. It took 30 day to deliver books to the customers of 50
states and 45 countries.

Amazon.com was a huge success in nineties.Amazon.com became

a platform for the retailer and individuals in 2000.Amazon.com offers
their services towards four types of customers, consumers, sellers,
enterprises and content creators. (Annual report 2013) Amazon serves
customer through the popular web site www.amazon.com. Now a day
customers can access through mobile technology.Amazon.com apps
are also available for the customers.

OBJECTIVES OF THE STUDY

• To study the level of Customer Satisfaction towards AMAZON.IN

in Lucknow City
• To Study the Customer Preference Towards Online Shopping in
Lucknow City.
• To study the Consumer buying behavior towards online shopping in
Lucknow city
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SCOPE OF THE STUDY

This research work will be covered Amazon and also deals with the
customers which are regulars used to shopping from Amazon. The
study also covered the quality of the service and how they impact on
the customer complacency and for instant it come across with what
factor that are accommodate and enhance the satisfaction feeling of the
customer on Amazon.

RESEARCH METHODOLOGY

Research Design

A research design is a type of blueprint prepared depending on various

types of blueprints available for the collection, measurement and
analysis of data. A research design calls for developing the most
efficient plan of gathering the needed information. 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

6
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 time-consuming. The various ways of gathering
primary data is through surveys, focus group and observations.

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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.

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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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 CHAPTER -2
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 "regret-minimization 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."

The company began as an online bookstore named "Cadabra.com", a

name quickly 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.

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The domain amazon.com attracted at least 615 million visitors annually
by 2008 according to a Compete.com survey. This was twice the
numbers of walmart.com.

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 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.

Vision

“to be Earth’s most customer-centric company, where customers can

find and discover anything they might want to buy online, and
endeavors to offer its customers the lowest possible prices.”

Mission

“serve consumers through online and physical stores and focus on

selection, price, and convenience.”

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Organizational structure

Product portfolio
A. Existing product
• Retail Goods
• Amazon Prime
• Consumer Electronic
• Digital Content
• Amazon Studios
• Amazon Game Studios
• Amazon Videos
• Delivery

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 • Amazon Business
• Amazon Drive
B. Future Product

• Cashier free stores

• Biometric payments
• Catering for all shoppers
• Food delivery services
• AL-powered home robots

USP

Amazon is a trusted brand providing online shopping experience for

customers.

SWOC Analysis

Strength

1. Amazon is an early market entrant with brand equity

2. Integrated services like online ticket tracking, online money transfers
etc. give Amazon a huge edge
3. Vast customer base due to international presence
4. Amazon provides customized user shopping experience.
5. The company has over 500,000 employees in over 20 countries

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6. Strong brand image of Amazon owing to excellent marketing and
branding activities
7. Advertising through online, TVCs, print ads etc. have increased
brand presence of Amazon
8. It is one of the largest tech retailers in the world
9. Amazon Prime is one of the fastest growing online content providers
giving music, movies & entertainment
10. During Pandemic, online content providers like amazon prime have
gained a lot with movies releasing directly on the platform

Weaknesses

1. Intense competition means limited market share growth for Amazon

2. Heavy investments in advertising and discounting affecting margins
3. Amazon has entered into a lot of verticals (eCommerce, Video,
Music, Cloud, Fire Stick) and is facing competition with different
players in each segment

Opportunities

1. The markets devoid of internet and increasing internet can

boost Amazon's presence
2. Customers reluctant in shopping online can be persuaded

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3. Partnerships with corporate houses for bulk selling can help
boost sale of Amazon
4. Acquisition of smaller business can help boost the business
worldwide

Challenges

1. Amazon can be subjected to online frauds

2. Risk of brand dilution by selling a very wide range of products
3. Newly emerging competitive online shopping portals can be
challenging
4. Strict government policies and taxation can affect margins
5. for service like Amazon prime, lot of local content providers in
individual countries can impact revenue

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 Chapter-3

Amazon Digital Marketing:

Amazon is a multinational company that focuses on e-commerce, cloud

computing, digital streaming, and artificial intelligence. Their success
is not an unfamiliar thing to the world, it has achieved numerous
milestones in the last 26 years.

Initially, Amazon used to sell books only. Now in 2020, it’s providing
numerous services and is among the “top 5 most valuable companies
in the world.”

How has Amazon achieved all this in the last 26 years? and What are
the key elements of their success?

Digital marketing is one of the many key elements in the success of

Amazon. Let us understand how digital marketing played a vital role in
Amazon’s success.

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“Earth’s most customer-centric company”

This has been Amazon’s motto since 1994. Means, that they were
determined to provide services, where customers can find anything they
want online. And for that, they attempted to offer its customers
reasonable price possible and conveniently.

Jeff Bezos, the founder of Amazon, has always emphasized the

importance of a company being customer-focused more than other
aspects such as product-focused, competitor focused, etc.

Digital Marketing Approach By Amazon

There are various strategies that Amazon has implemented, few are
stated below:

1. Customer’s Review.

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Amazon customer review service has been one of the fundamentals of
digital marketing services. While browsing the Amazon website a user
comes across reviews, before and after the purchase.

Reviewing services are now very common and have been implemented
by various websites, amazon has provided a blueprint for the
companies that how to implement a model that would efficiently.

A customer can rate, write reviews, and upload a picture of the product
as per their experience. Reviews are considered to be very important
because while purchasing something online customers can’t touch or
test the product before they have made the purchase and the product
has been delivered, reviews provide indicators of the quality of the
product to the buyer.

Amazon also provides community moderation by encouraging

customers to vote with the option “Helpful” on the relevance and utility
of the reviews left by other customers and customers can ask a direct
question about the product as well.

2. Free Shipping And Discounts.

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The free shipping method helps in increasing the customer purchasing
limit. Although if it is applicable on order above 1000 rupees, the
customer would try to reach that amount by increasing basket size to
avoid additional charges. Eventually, it is a very beneficial deal for
them.

Amazon provides multiple discounts on various products which is not

possible to get in offline stores, hence more customers are driven
towards purchasing offline.

3. Communication with The Customer.

Nowadays every e-commerce company notifies customers about their

order confirmation, delivery date estimates, shipment, and delivery
notification.

However, 15–10 years ago it wasn’t possible to provide such services

easily by every company. Most importantly, Amazon has been setting
models for other e-commerce companies back then. As an example, in

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the American customer satisfaction index, amazon got a score of 88.
And it was the highest customer score ever for any online or offline
services industry.

4. Creative Digital Marketing Campaigns.

Through Digital Marketing Campaigns, a company promotes its

product on online platforms. It facilitates them with more sales and
increases brand awareness.

In India successful campaigns of Amazon are:

#AurDikhao

#DiwaliOnAmazon

#EkBarAmazonTryTohKar

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Digital platforms that are used for Digital Marketing campaigns are
Email, Social media, Google AdWords, etc.

5. Innovation and Technology

Amazon has achieved various milestones in the world of technologies

and eventually making its lead in the Digital Marketing world. Using
Machine learning, Artificial Intelligence, and Computer vision.

Some examples are stated below:

Amazon Go: It is a new kind of store with no checkout and no line. It

uses the “Just Walk Out” technique. Using the app, customers can enter
the store, take the product they want. It will automatically add to the
virtual cart, so, they can just walk out of the store.

Amazon achieved the vision by Deep Learning Algorithms, Computer

vision, and sensor fusion.

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Amazon Prime: It is a paid yearly subscription that provides fast and
free shipping as compared to normal Amazon service and also provides
accessibility of unlimited streaming of TV shows and movies.

Alexa: Alexa is Amazon’s voice responding virtual assistant. Just like

Siri is for Apple, Google Assistant for Google.

Kindle: It is an e-reader that enables users to browse, buy, download,

and read books, newspapers, and magazines from the Kindle Store.

Amazon Food: Amazon begins the food delivery business in India.

Getting in competition with Swiggy and Zomato. Importantly, the
company has launched services amid COVID-19 when food ordering
has been down by 80%. And also, providing services on the regular app
with availability at selective parts of Mumbai and Bangalore.

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Jeff Bezos visited India in January 2020 and faced a backlash from
Indian traders because of the e-commerce company’s popularity and
expansion, many small traders’ occupation has been jeopardized.

He then assured that Amazon will plan to sell $10 billion worth “Made
in India” goods globally by the end of 2025. With this strategy, Indian
sellers will get access to millions of customers across 180+ countries.
Moreover, Amazon announced $1 billion for digitizing Small and
Medium Enterprises. After completion of this initiative, numerous
traders will get the opportunity to sell their products to a huge audience
in India as well as globally.

In conclusion, Amazon through its successful digital marketing

approach will give an opportunity to Indian traders to make its huge
impact on the global market.

SEO In Amazon Digital Marketing Strategy

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Amazon’s website has numerous sellers for an individual product,
however, the question is what kind of SEO approach a seller should use
to get its product ranking higher?

Alike Google, Amazon uses the A9 algorithm for determining the rank
of the products in its search results. Also, it is very much similar to
Google’s search algorithm. The only difference between them, A9
focuses only on sales conversions and isn’t mature enough as Google’s
search engine.

It is crucial to use relevant keywords in the process of an individual

product listing. Keywords are one of the vital factors for them to decide
the relevance in search queries. It eventually helps to set higher rankings
to the most relevant pages.

Amazon Customers

Amazon defines what it refers to as three consumer sets customers,

seller customers and developer customers.

There are over 76 million customer accounts, but just 1.3 million active
seller customers in it’s marketplaces and Amazon is seeking to increase
this. Amazon is unusual for a retailer in that it identifies “developer
customers” who use its Amazon Web Services, which provides access
to technology infrastructure such as hosting that developers can use to
develop their own web services.

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Members are also encouraged to join a loyalty programmed, Amazon
Prime, a fee-based membership program in which members receive free
or discounted express shipping, in the United States, the United
Kingdom, Germany and Japan.

Competition

In its 2017 SEC filing Amazon describes the environment for our
products and services as ‘intensely competitive’. It views its main
current and potential competitors as:

• 1) online, offline, and multichannel retailers, publishers, vendors,

distributors, manufacturers, and producers of the products we
offer and sell to consumers and businesses;

• (2) publishers, producers, and distributors of physical, digital, and

interactive media of all types and all distribution channels;

• (3) web search engines, comparison shopping websites, social

networks, web portals, and other online and app-based means of
discovering, using, or acquiring goods and services, either directly
or in collaboration with other retailers;

• (4) companies that provide e-commerce services, including

website development, advertising, fulfillment, customer service,
and payment processing;

• (5) companies that provide fulfillment and logistics services for

themselves or for third parties, whether online or offline;

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 • (6) companies that provide information technology services or
products, including on- premises or cloud-based infrastructure
and other services; and

• (7) companies that design, manufacture, market, or sell consumer

electronics, telecommunication, and electronic devices.

It believes the main competitive factors in its market segments include

"selection, price, availability, convenience, information, discovery,
brand recognition, personalized services, accessibility, customer
service, reliability, speed of fulfillment, ease of use, and ability to adapt
to changing conditions, as well as our customers’ overall experience
and trust in transactions with us and facilitated by us on behalf of third-
party sellers".

For services offered to business and individual sellers, additional

competitive factors include the quality of our services and tools, their
ability to generate sales for third parties we serve, and the speed of
performance for our services.

From Auctions to marketplaces

Amazon auctions (known as shops) were launched in March 1999, in

large part as a response to the success of eBay. They were promoted
heavily from the home page, category pages and individual product
pages. Despite this, a year after its launch it had only achieved a 3.2%
share of the online auction compared to 58% for eBay and it only
declined from this point.

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Today, competitive prices of products are available through third-party
sellers in the ‘Amazon Marketplace’ which are integrated within the
standard product listings. A winning component of the Amazon
marketing strategy for marketplaces was the innovation to offer such
an auction facility, initially driven by the need to compete with eBay.
But now the strategy has been adjusted such that Amazon describe it as
part of the approach of low-pricing.

Although it might be thought that Amazon would lose out on enabling

its merchants to sell products at lower prices, in fact Amazon makes
greater margin on these sales since merchants are charged a
commission on each sale and it is the merchant who bears the cost of
storing inventory and fulfilling the product to customers. As with eBay,
Amazon is just facilitating the exchange of bits and bytes between
buyers and sellers without the need to distribute physical products.

Amazon marketing strategy for partnerships

As Amazon grew, its share price growth enabled partnership or

acquisition with a range of companies in different sectors. Marcus
(2004) describes how Amazon partnered with Drugstore.com
(pharmacy), Living.com (furniture), Pets.com (pet supplies),
Wineshopper.com (wines), HomeGrocer.com (groceries),
Sothebys.com (auctions) and Kozmo.com (urban home delivery). In
most cases, Amazon purchased an equity stake in these partners, so that
it would share in their prosperity. It also charged them fees for

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placements on the Amazon site to promote and drive traffic to their
sites.

Similarly, Amazon marketing strategy was to charge publishers for

prime-position to promote books on its site which caused an initial hue-
and-cry, but this abated when it was realised that paying for prominent
placements was widespread in traditional booksellers and
supermarkets. Many of these new online companies failed in 1999 and
2000, but Amazon had covered the potential for growth and was not
pulled down by these partners, even though for some such as Pets.com
it had an investment of 50%.

Analysts sometimes refer to ‘Amazoning a sector’ meaning that one

company becomes dominant in an online sector such as book retail such
that it becomes very difficult for others to achieve market share. In
addition to developing, communicating and delivering a very strong
proposition, Amazon has been able to consolidate its strength in
different sectors through its partnership arrangements and through
using technology to facilitate product promotion and distribution via
these partnerships. The Amazon retail platform enables other retailers
to sell products online using the Amazon user interface and
infrastructure through their ‘Syndicated Stores’ programmed.

For example, in the UK, Waterstones (www.waterstones.co.uk) is one

of the largest traditional bookstores. It found competition with online
so expensive and challenging, that eventually it entered a partnership
arrangement where Amazon markets and distributes its books online in

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return for a commission online. Similarly, in the US, Borders a large
book retailer uses the Amazon merchant platform for distributing its
products.

Toy retailer Toys R’ Us have a similar arrangement. Such partnerships

help Amazon extends its reach into the customer-base of other
suppliers, and of course, customers who buy in one category such as
books can be encouraged to purchase into other areas such as clothing
or electronics.

Another form of partnership referred to above is the Amazon

Marketplace which enables Amazon customers and other retailers to
sell their new and used books and other goods alongside the regular
retail listings. A similar partnership approach is the Amazon
‘Merchants@’ program which enables third party merchants (typically
larger than those who sell via the Amazon Marketplace) to sell their
products via

Amazon. Amazon earn fees either through fixed fees or sales

commissions per-unit. This arrangement can help customers who get a
wider choice of products from a range of suppliers with the
convenience of purchasing them through a single checkout process.

Finally, Amazon marketing strategy has also facilitated formation of

partnerships with smaller companies through its affiliates programme.
Internet legend records that Jeff Bezos, the creator of Amazon was
chatting to someone at a cocktail party who wanted to sell books about

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divorce via her web site. Subsequently, Amazon.com launched its
Associates Program in July 1996 and it is still going strong.
GROWTH OF INDIAN AD INDUSTRY (INR CR)

2020 will be the year of cricket for India, starting matches with Sri
Lanka, followed by Australia, South Africa, IPL England and ICC T20
world cup. This will generate a strong advertising demand, enabling the
Indian Advertising industry to grow with the sustained economic
momentum at 10.9% to reach Rs. 75,952 crores by the end of 2020. By
2025 the Indian ad industry is forecasted to grow with a CAGR of
11.83% to reach Rs. 1,33,921 crores. This growth is expected to be
driven by the increased customer focus on rich content, deepening
penetration of smartphones along with improved telecom infrastructure
and subsequent spending on digital advertising. Along with
entertainment, need for information is a high driver for consuming
media. Spending time with family as a reason is trailing behind. 63%

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of the total audience is consuming media to be informed, while 51%
are consuming it to connect with friends & family.

FUTURE ESTIMATES OF INDIAN AD INDUSTRY (INR CR)

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 CHAPTER-4

DATA ANALYSIS & INTERPRETATION

The data collected from primary sources through collection of the

responses of the 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

Graph 4.1: Gender wise respondents

Gender
70

58
60

50
42
40
Responses
30

20

10

0
Male Female

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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.

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

Graph 4.2: Age wise respondents

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

33
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
No. of respondents 8 7 46 29 10 100
Percentage 8 7 46 29 10 100

Graph 4.3: Occupation wise respondents

Sales
50% 46%
45%
40%
35%
29%
30%
25%
Sales
20%
15%
10%
10% 8% 7%
5%
0%
Business Housewife Salaried Student Others

34
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:

Table 4.4: Educational wise respondents

Graduat post graduate SSC or Equivalent Other

e s
(PhD)
Number of respondents 63 36 0 1
Percentage 63 36 0 1

Graph 4.4: Educational wise respondents

Educational Qualifications
70 63 63
60

50

40 36 36
Number of respondents
30
percentage
20

10
0 0 1 1
0
Graduate post graduate SSC or Equivalent PhD

35
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

Graph 4.5: Income wise respondents

Annual Income
4%

13%

0- 3 L
23% 3-6L
60%
6-9L
9 & above

36
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.
Behavioral 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.
6) Frequency of purchase from online:

Table 4.6: online shopping usage

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

Graph 4.6: online shopping usage

35
29
30

25 23
21
20
14
15

10
5 4
5 3
1 0 0
0
Always Often Sometimes Seldom Never

Male Female

37
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 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.

7)Mode of awareness about Amazon. In:

Table 4.7: Modes of awareness about Amazon. In

Blog recommendations

Search engines(like
Promotional emails
Links from other
Advertisements,
newspapers, TV
Word of Mouth

websites

Google)

Total

No: of respondents 39 22 2 15 5 17 100

Percentage 39 22 2 15 5 17 100

38
 No: of respondents
45
40
35 39
30
25
20
15 22
10 15 17
5 2 5
0 No: of respondents

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.

39
8) Frequency of using Amazon. In while online purchasing:
Graph 4.8: Frequency of using Amazon. In
Every Occasional Most of the Hardly Tota
time ly time ever l
No: of 17 45 32 6 100
respondents
Percentage 17 45 32 6 100

Graph 4.8: Frequency of using Amazon. In

No: of respondents
50
45
45
40
35 32
30
25
No: of respondents
20 17
15
10
6
5
0
Everytime Occasionaly Most of the time Hardly 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.

40
9) Category that mostly prefer to buy from Amazon. In:
Graph 4.9: Category mostly prefer to buy from Amazon. In

Books, Movies &

Home & Kitchen

&personal care
Accessories

Stationaries
Apparels &
Electronics

Healthcare
Music

Total
items
No: of respondents 39 20 30 3 4 4 100

Percentage 39 20 30 3 4 4 100

Graph 4.9: Category mostly prefer to buy from Amazon. In

No: of respondents
45
40
35 39
30
25 30
20
15 20
10
5 3 4 4 No: of respondents
0

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%).

41
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.

10) Reason for customer’s preference on Amazon. In than others:

Table 4.10: Customers expecting feature of Amazon. In.
Fast Delivery

Replacement
Availability

After Sales

Payment

Features
services

options

service
Portal

Total
Easy
Responses 31 29 8 17 5 10 100
Percentage 31 29 8 17 5 10 100

Graph 4.10: Customers expecting feature of Amazon. In

Responses
35

30

25

20

15
Responses
10

0
Fast delivary Availability After sale Easy Portal Replacement
service Payment Features service
options 17

42
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

60

50

40 Cash on delivery
30 30 days replacement policy

20 EMI options
Free shipping
10

0
Excellent Good Average Below Poor
Average

43
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 analyzing 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 customized
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.

44
12) Issues faced by customers while shopping in amazon. In
Table 4.13: Issues faced when purchased from amazon. In

Payment issues

Faulty product
Replacement
Out of stock

No issues
Delivery
Delay in

Others
issues

Total
No of Responses 37 6 6 12 8 30 1 100
Percentage 37 6 6 12 8 30 1 100

Graph 4.13: Issues faced when purchased from Flikart

40
37

35

30
30

25

20

15
12

10 8
6 6
5
1
0
Out of stock
Payment issues
Replacement Delay
issuesin Delivery
Faulty productNo issues Others

No of Responses

45
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.
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.

46
13) Recommending this website to others:

Table 4.14: Recommending amazon. In to others

Yes No Total
No: of Responses 95 5 100
Percentage 95 5 100

Graph 4.14: Recommending amazon. In to others

100
90
80
70
60
50 95
40
30
20
10
0 5
Yes No

No: of Responses

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.

47
14) Customer’s rating about services on amazon. In: (in a scale of
5, 5 as highest and 1 as least)
Table 4.15: Rating the experience from amazon. In

1 2 3 4 5 Total
No of Responses 7 11 16 49 17 100
Percentage 7 11 16 49 17 100

Graph 4.15: Rating the experience fromAmazon.In

60

50

40

30
49
20

10 17
16
11
7
0
1 2 3 4 5

No of Responses

Interpretation:
While analyzing 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.

48
15) Satisfaction of customers while amazon. In services are used:

Table 4.16: Satisfaction on services of amazon. In

Yes No Total
No: of responses 81 19 100
Percentage 81 19 100

Graph 4.16: Satisfaction on services of amazon. In

90
80
70
60
50
81
40
30
20
10 19

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.

49
 Chapter-5

FINDINGS

• There is not much difference in gender for using online shopping.

• Students and salaried persons are most frequent users of amazon.
In.
• Frequency of purchase for electronics, books and music, apparels
and accessories are more in amazon. In.
• 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 development is there for increasing the customer
strength.
• Digital marketing techniques like search engine marketing, links
providing other website and advertisement also functioned well
for promotion of this website.
• Fast delivery is one of best service amazon. In is providing.
• Different payment options available in amazon. In made
customers more satisfied and comfort for paying while
purchasing product.
50
• Customers feeling more secured when purchasing through
amazon. In because of different policies and services they have.
• 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.
• Out of stock is the main issue faced by amazon. In.
• 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 retaining the customers.
• 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 purchasing through online.

SUGGESTIONS

• 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 on their core competence that
is books and stationery items.
• Delivery services can be improved mainly in rural areas by
selecting appropriate courier service which has services in
customer area for dispatching an item.

51
• Can make free delivery to all priced products.
• 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.
• Should look for International/ Overseas markets or Neighboring
Countries.
• Critical mass of Internet users – Internet users in India is
increasing at increasing 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 apparel category either organically or
inorganically by acquiring other 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.
• Should comprehensively invest into E-CRM & online reputation
management.

52
 • 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 more competitive on that aspect.

CONCLUSION

• 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 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.
In the past, consumers had sufficient time to visit shopping centers,
searching for various products. Many consumers prefer bargaining and
decide the purchases after physical examination of the commodities.
The entire process can range from a few hours to weeks depending on

53
the product, quantity, quality and source of purchase. Today there is
radical change in the entire scenario. Everything in today’s world is
Internet oriented like Electronic Data Interchange, E-Mail, E-Business
and ECommerce. E-Commerce is exchange of information using
network-based technologies. In the present high cost situation, e-
Commerce can be used as a competitive strategy. It successfully
includes the entire online process of developing, marketing, selling,
delivering, servicing and paying for products and services. Online
shopping is a vast growing technology. If it is properly utilized with
assured safety and security for the transactions, it will thrive into a
highly competitive and dynamic environment. Online shopping is
becoming more popular day by day with the increase in the usage of
World Wide Web known as www.

Understanding customer’s need for online selling has become

challenge for marketers. Specially understanding the consumer’s
attitudes towards online shopping, making improvement in the factors
that influence consumers to shop online and working on factors that
affect consumers to shop online will help marketers to gain the
competitive edge over others.

54
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Tata McGraw-Hill Publishing Company Limited, New Delhi, India.
➢ Creswell, J. W. (2003). “Research Design: Qualitative, Quantitative, and Mixed
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➢ ANALYSIS OF CONSUMER BEHAVIOUR ONLINE

Author: Dejan Petrovic

➢ 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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