A

Research project report on

Factors affecting online shopping behavior with reference to amazon.com
In partial fulfillment of the requirement for
Program
Year
Subject

SEMESTER II
December 2014 to April 2015
Research report

SUBMITTED BY:
Sr. no.
1.
2.
3.
4.
5.
6.

Name
Ahemad Ali Kadiwala
Indra Kumar Sharma
Megh Raval
Lalakiya arzookumari
Gopi Patel
Anusya Margaret A

E-mail
ahemadali.kadiwala@gmail.com
indrasharma591818@gmail.com
meghraval1234@gmail.com
arzoopatel999@gmail.com
gopipatel6495@gmail.com
smilinganujy@gmail.com

Enroll no.
15124321009
15124321034
15124321030
15124321011
15124321021
15154421001

SUBMITTED TO:

Prof. Nirav Halvadia

Centre For Management Studies, Ahmedabad
PREFACE
This research project report has been prepared in partial fulfillment of the requirement for the
subject: project of the semester II during the period of December 2015 to May 2016.
1

As per MBA circular and in order to gain practical knowledge in the field of management,
we are required to prepare research project on "A study on Factors affecting online
shopping behavior with reference to amazon.com " the basic objective of this research is
to gain familiarity with various issues related to perception and buying behavior of customers
of amazon.com
Our main focus and study was on A study on factor affecting online shopping behavior with
reference to amazon.com. We have put up our best efforts and enumerated every possible
information, while survey and analysis in the research to make this research report a
satisfactory report.
It was a great opportunity and memorable experience exploring the strategies used in selling
the products. And the factors that play significant role in mind of the customers and acquiring
the knowledge about the same.
Lastly, we have tried our level best to prepare the best informative report.

ACKNOWLEDGEMENT
We hereby take this opportunity to express a deep sense of gratitude to Centre for
Management studies for including this practical project in the curriculum as this project has
given a good experience of using theoretical knowledge into practical life.
2

We are heartily thankful to the director of our institute Dr. Mahendra Sharma, and center
coordinator Prof. Ujal Mehta for providing us an opportunity to make a project report in
Business Research Methodology
We take this opportunity to express our profound gratitude and deep regards to Dr. Nirav
Halvadia for his guidance and constant encouragement throughout the project.
We are also thankful to all our friends who helped me in the completion of project.
We are also grateful to all those who have directly or indirectly helped us to bring this effort
of completion.
It is our foremost duty to thank all our respondents who helped us to complete our field work
and without whom this project was not possible

Ahemad Ali
Gopi Patel
Megh Raval
Arzoo Lalakiya
Anusya
Indra Sharma

Content Index
Sr. No.
a
b

Particular
Title Page
Preface

Page No.
1
2
3

c
1.
1.1
1.2
1.3
1.4
1.5
2
2.1
2.2
2.3
3
3.1
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
3.2.8
4
4.1
4.2
5
6
7
8
9

Acknowledgement
Introduction
History
Title of the study
Research Question
Objective of the study
Hypothesis
Literature review
E-commerce
Factor affecting online

shopping

3
7
7
14
14
14
15
16
16
toward 17

amazon.com
Customer satisfaction towards amazon.com
Research methodology
Research design Exploratory
Research design conclusive
Sampling design
Scaling Technique
Questionnaire design
Data analysis software
Data analysis techniques
Data collection tools
Data collection method
Data analysis and interpretation
Demographics
Factor that affect online buying behavior
Conclusion
Suggestion
Limitation
Bibliography
Annexure

22
24
24
24
24
25
25
26
26
26
26
27
27
28
61
62
63
64
66

Particular
Gender
Age
Marital status

Page No.
27
28
29

Table Index
Sr. No.
4.1.1
4.1.2
4.1.3

4.1.4
4.1.5
4.1.6
4.1.7
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8
4.2.9
4.2.10
4.2.11
4.2.12
4.2.13
4.2.14
4.2.15
4.2.16
4.2.17
4.2.18
4.2.19
4.2.20
4.2.21
4.3
4.4
4.5
4.6

Occupation
Annual income
Purchase product from amazon.com
Frequently purchase
Convenient
Easy to use
Better discount
Save time
Variety of product
Detail product information
Delivery system
Return policy
Misuse of credit card detail
Trust security of payment
Better quality of product
Get better service
Easy to compare
Mode of payment
Reduce my efforts
Easy to cancel order
Waiting for product
Get different product
After sale service
Satisfied with service
recommendation
Mean and standard deviation
Chi-square
Independent sample t-test
Annova test

30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
57
59
60

1. INTRODUCTION
1.1

HISTORY
Amazon.com, Inc. ("Amazon.com" or the "Company"), the Internet's number one
book, music and video retailer, opened its virtual doors on the Web in July 1995.
Amazon.com, one of the most widely known, used and cited commerce sites on the
Web, offers more than 4.7 million book, music CD, video, DVD, computer game and
other titles. The Company offers its customers a superior shopping experience by
providing value and a high level of customer service. Amazon.com is a proven
technology leader; it has developed electronic commerce innovations such as 1-Click
ordering, personalized shopping services and easy-to-use search and browse features.
Shopping at Amazon.com is fast and safe, incorporating a simple ordering system,
secure credit card transactions, e-mail communication with customers and direct
shipping worldwide.
The Internet is an increasingly significant global medium for online commerce.
According to Forrester Research, the total value of goods and services purchased over
the Web was $43 billion in 1998 and is expected to increase to $1.3 trillion in 2003.
Amazon.com believes it is well positioned to capitalize on this growth. According to
Media Metrix, approximately 16% of Web users visited Amazon.com's stores in
December 1998.
Amazon.com was incorporated in 1994 in the state of Washington and reincorporated
in 1996 in Delaware. The Company's principal corporate offices are located in
Seattle, Washington. Amazon.com completed its initial public offering in May 1997
and its common stock is listed on the Nasdaq National Market under the symbol
"AMZN."

Background
The story of the formation of Amazon.com is often repeated and is now an urban
legend. The company was founded by Jeff Bezos, a computer science and electrical
engineering graduate from Princeton University. Bezos had moved to Seattle after
6

resigning as the senior vice-president at D.E.Shaw, a Wall Street investment bank. He

did not know much about the Internet. But, he came across a statistic that the Internet
was growing at 2300%, which convinced him that this was a large growth
opportunity. Not knowing much more, he plunged into the world of E-Commerce
with no prior retailing experience.
He chose to locate the company in Seattle because it had a large pool of technical
talent and since it was close to one of the largest book wholesalers located in
Roseburg, Oregon. Clearly, he was thinking of the company as a bookseller at the
beginning. Moreover, the sales tax laws for online retailers state that one has to
charge sales tax in the state in which one is incorporated. This means that for all
transactions from that state the price would be increased by the sales tax rate leading
to a competitive disadvantage. Therefore, it was logical to locate in a small state and
be uncompetitive on a smaller number of transactions rather than in a big state such
as California or New York.
The company went on-line in July 1995. The company went public in May 1997. As a
symbol of the companys frugality, Jeff and the first team built desks out of doors and
four-by-fours. The company was started in a garage. Ironically, initial business
meetings were conducted at a local Barnes and Noble store.
Bezos first choice for the company name was Cadabra. He quickly dropped this
name when a lawyer he contacted mistook it for cadaver. He picked Amazon because
it started with the letter A, signified something big and it was easy to spell.
For his contribution, Jeff Bezos was picked as the 1999 Time person of the year at the
age of 35 making him the fourth-youngest person of the year. Describing why it
chooses Bezos, Time magazine said, Bezos vision of the online retailing universe
was so complete, his Amazon.com site so elegant and appealing that it became from
Day One the point of reference for anyone who had anything to sell online.
Amazon.com Web Sites
The Company believes that the sale of books, music and other products and services
over the Web can offer attractive benefits to customers, including greater selection,
convenience, ease-of-use, competitive pricing and personalization. Customers
7

entering Amazon.com Web sites can, in addition to ordering books and other
products, purchase gift certificates, conduct targeted searches, browse highlighted
selections, view bestseller lists and other features, read and post reviews, register for
personalized services, participate in promotions and check order status. The key
components of Amazon.com's offerings include browsing, searching, reviews and
content, recommendations and personalization, 1-Click technology, secure credit card
payment and availability and fulfilment. The Company's Web sites promote brand
loyalty and repeat purchases by providing an inviting experience that encourages
customers to return frequently and to interact with other customers.
Browsing. The Amazon.com sites offer visitors a variety of highlighted subject areas,
styles and special features arranged in a simple, easy-to-use fashion intended to
enhance product search and selection. In addition, the Web sites present a variety of
products and services and topical information. To enhance the customers' shopping
experience and increase sales, the Company features a variety of products and
services on a rotating basis throughout the stores.
Searching. A primary feature of Amazon.com Web sites is its interactive, searchable
catalogues of more than 4.7 million books, music CD, video, DVD, computer game
and other titles. The Company provides a selection of search tools to find books,
music, video and other products based on keyword, title, subject, author, artist,
musical instrument, label, actor, director, publication date or ISBN. Customers can
also use more complex and precise search tools such as Boolean search queries. The
Company licenses some of its catalogue and other information from third parties.
Reviews and Content. The Amazon.com stores offer numerous forms of content to
enhance the customer's shopping experience and encourage purchases. Various types
of content are available for particular titles, including cover art, synopses,
annotations, reviews by editorial staff and other customers, and interviews by authors
and artists.
Recommendations and Personalization. Amazon.com personalizes its product and
service offerings. These features include greeting customers by name, instant and
personalized recommendations, bestseller and chart-topper listings, personal
notification services, purchase pattern filtering and a number of other related features.
8

The Company believes that personalization of a customer's shopping experience at

the Company's Web sites is an important element of the value proposition it offers to
customers and intends to continue to enhance its personalized services.
Availability and Fulfilment. Many of the Company's products are available for
shipment within 24 hours, others are available within two to three days and the
remainder are generally available within four to six weeks, although some products
may not be available at all. Out-of-print books generally are available in one to three
months, although some books may not be available at all. Customers can select from
a variety of delivery options, including overnight and various international shipping
options, as well as gift wrapping services. The Company uses e-mail to notify
customers of order status under various conditions and provides links to shipping
carriers so that the customers can track their shipments. The Company seeks to
provide rapid and reliable fulfilment of customer orders and to continue to improve
its speed of availability and fulfilment.

Products, Services and Geographic Expansion

Products, the Company has offered books for sale since July 1995. The Company
expanded its product offerings beyond books with the June 1998 launch of its music
store. In the third quarter of 1998, its first full quarter of online music sales,
Amazon.com became the number one online music seller. In November 1998,
Amazon.com launched its video store and an enhanced holiday gift store, offering a
variety of products, including selected personal electronics and toy products. In the
fourth quarter of 1998, its first quarter of online video sales, Amazon.com became the
number one online video seller. The Company plans to continue to expand its product
offerings.
Services, Amazon.com intends to broaden the scope of its business with the goal of
becoming customers' preferred destination for online shopping. In August 1998,
Amazon.com merged with Sage Enterprises, Inc. ("PlanetAll"), a Web-based address
book, calendar and reminder service, and Junglee Corp. ("Junglee"), a leading
provider of Web-based virtual database technology, which allows visitors to access a
9

variety of products sold by other merchants. The Company plans to continue to

expand its service offerings.
Geographic Expansion, In April 1998, Amazon.com acquired three Internet
companies in the United Kingdom and Germany. In October 1998, the Company relaunched two of these businesses under the Amazon brand. The Company
incorporated Amazon.com's technology and look-and-feel into the European sites,
www.amazon.co.uk and www.amazon.de. During the fourth quarter of 1998, combined
sales on the European sites significantly increased over the third quarter, establishing
Amazon.com as the number one online bookseller in these markets. For discussion of
segment and geographic information, see Note 1 of Notes to Consolidated Financial
Statements.
Marketing and Promotion
Amazon.com's marketing strategy is designed to strengthen the Amazon brand name,
increase customer traffic to the Amazon.com Web sites, build customer loyalty,
encourage repeat purchases and develop incremental product and service revenue
opportunities.
Amazon.com creatively applies technology to deliver personalized programs and
services, as well as flexible merchandising. The Company employs a variety of
media, business development and promotional methods to achieve these goals. The
Company also benefits from public relations activities as well as online and
traditional advertising, including radio, television and print media.
Customer Service
The Company believes that its ability to establish and maintain long-term
relationships with its customers and to encourage repeat visits and purchases depends,
in part, on the strength of its customer support and service operations and staff.
Furthermore, the Company seeks to achieve frequent communication with and
10

feedback from its customers to continually improve the Amazon.com stores and
services. The Company offers a number of e-mail addresses to enable customers to
request information and to encourage feedback and suggestions. Users can also
contact customer service representatives via telephone 24 hours a day, 7 days a week.
The Company has automated certain of the tools used by its customer support and
service staff and has plans for further enhancements.
Warehousing, Fulfilment and Distribution
The Company sources products from a network of distributors, publishers, labels and
manufacturers. Although the Company carries its own inventory (some of which is
purchased directly from manufacturers), it also relies on rapid fulfilment from major
distributors and wholesalers that carry a broad selection of titles. The Company
purchases a majority of its products from Ingram Book Group ("Ingram"), Baker &
Taylor, Inc. ("B&T") and Valley Media, Inc. ("Valley Media"). Ingram is the
Company's single largest supplier and accounted for approximately 40% and
approximately 60% of the Company's inventory purchases in 1998 and 1997,
respectively.
The Company utilizes automated interfaces for sorting and organizing its orders to
enable it to achieve rapid and economic purchase and delivery terms. For orders that
cannot be filled from the Company's inventory, the Company's proprietary software
selects the orders that can be filled via electronic interfaces with vendors and
forwards the remaining orders to its special orders group. Under the Company's
arrangements with distributors, electronically ordered books often are shipped to the
Company by the distributor within hours of a receipt of an order from Amazon.com.
The Company has developed customized information systems and trained dedicated
ordering personnel who specialize in sourcing out-of-print books and other hard-tofind products.
The Company intends to continue developing its distribution infrastructure to increase
efficiency and to support greater customer demand. For example, in December 1998,
11

Amazon.com leased a highly mechanized distribution facility in Fernley, Nevada. The

new facility, which is expected to begin operations in 1999, should reduce standard
shipping times to key markets in the western United States. The facility will allow the
Company to increase significantly the number of products maintained in inventory for
rapid shipment to customers.
Competition
The online commerce market, particularly over the Web, is new, rapidly evolving and
intensely competitive. In addition, the retail book, music and video industries are
intensely competitive. The Company's current or potential competitors include (1)
online booksellers and vendors of other products such as CDs, videotapes and DVDs,
(2) a number of indirect competitors, including Web portals and Web search engines
such as Yahoo! and AOL, that are involved in online commerce either directly or in
collaboration with other retailers, (3) publishers, distributors and retail vendors of
books, music, video and other products, including Barnes & Noble, Inc. ("Barnes &
Noble"), Bertelsmann AG ("Bertelsmann") and other large specialty booksellers and
media corporations, many of

which possess significant brand awareness, sales

volume and customer bases, and (4) traditional retailers who currently sell, or who
may sell, products or services through the Internet. The Company believes that the
principal competitive factors in its market are brand recognition, selection,
personalized services, convenience, price, accessibility, customer service, quality of
search tools, quality of editorial and other site content, and reliability and speed of
fulfilment.

Employees
As of December 31, 1998, the Company employed approximately 2,100 employees.
The Company also employs independent contractors. None of the Company's
employees are represented by a labour union, and the Company considers its

12

employee relations to be good. Competition for qualified personnel in the Company's

industry is intense, particularly for software development and other technical staff.
The Company believes that its future success will depend in part on its continued
ability to attract, hire and retain qualified personnel.

1.2

TITLE:
Factors affecting online shopping behavior with reference to amazon.com

1.3
1.
2.
3.
4.

RESEARCH QUESTIONS
What is e-commerce?
What are the factors affecting the behavior of online shopping customers?
Are the customers are satisfied with amazon.com?
What is the customer perception about amazon.com?

1.4

OBJECTIVE OF THE STUDY

1.
2.
3.
4.

1.5

To study about youngsters purchasing behavior in concern with online

shopping.
To examine whether discount offers manipulate womens to purchase online.
To study middle class families are the largest customer bases of online shopping?
To study that amazon customers are satisfied with its services.

HYPOTHESIS
1.
2.

Youngsters are the preliminary captives for amazon.

Discounted product prices and various offers manipulate women customers to

3.

prefer online shopping

Middle class families make the largest consumer base of online shopping

4.

portals.
Customers of Amazon.com are well satisfied with its services.

13

2.

LITRETURE REVIEW

2.1

E-COMMERCE
The use of internet for commercial purposes gave rise to the existence of the
electronic commerce (e-commerce) phenomenon. With the implementation of
these information and communication technologies by commercial institutions in
order to support business activities, electronic business concept was developed.
Electronic commerce, also referred as e-commerce is defined by Oxford Dictionary
(2012) as 'commercial transactions conducted electronically on the Internet. Another
definition made by Financial Times (2012) as a buying and selling activity over the
Internet. To sum up e-commerce can be defined as the buying, selling and exchanging
of goods and services through an electronic medium (the Internet) by businesses,
consumers and other parties without any physical contact and exchange.
According to Xavier and Pereira, (2006)
The rise of these new information and communication technologies and of Internet
users, has introduced a new marketing reality (Xavier and Pereira, 2006). This new
14

presence changes the relations between the players. Furthermore businesses have
realized and seen the importance of the Internet and it has become that e-commerce in
the business context, for most companies, can be seen as a complement (Shaw, 2006;
XV).
According to Korper and Ellis, 2001; 11, Kotler and Armstrong, 2012;(533).
E-commerce has been divided into four categories considering the characteristics of
the buying and selling parties. These categories are: business to business (B2B),
business to consumer (B2C) or consumer to consumer (C2C) or consumer to business
(C2B). (Korper and Ellis, 2001; 11, Kotler and Armstrong, 2012; 533)
According to Mostaghel, (2006)
Electronic commerce is the sharing of business information, maintaining business
relationships, and conducting business transactions by means of telecommunications
networks. (Mostaghel, 2006)
According to Tian and Stewart (2007)
Electronic commerce represents not only the business of goods and services, but also
keeping buyers, creating relationships with customers other companies and making
businesses with them.

2.2

FACTOR AFFECTING ONLINE SHOPPING

According to Andrews and Currim, (2004)
The lists of factors having a positive or negative impact on consumers propensity to
shop do not seem to be very different from the considerations encountered in offline
environments. However, the sensitivities individuals display for each variable might
be very different in online marketplaces. Factors like price sensitivity, importance

15

attributed to brands or the choice sets considered in online and offline environments
can be significantly different from each other (Andrews and Currim, 2004).
According to Brassington & Pettitt (2000)
Price which is a part of the marketing mix is a factor used to stimulate the consumer
and is also communicator, to negotiate and a competitive weapon. The consumer can
use price as a means to compare products, judge relative value for the money, and the
judge quality of products. It is estimated that this factor has a considerable influence
on the consumers during their online shopping Brassington & Pettitt (2000).

According to Smith and Rupp (2003)

Due to the importance of making consumers feel secure and comfortable, the author
argues that the information concerning the security must be to the mediation
consumers in such a way that the sense of security is increased. The study clearly
indicates that the trust and convenience are major influence for the online consumer
shopping behavior, even if they are influencing the decision making process Smith
and Rupp (2003).
Smith and Rupp (2003) have examined and identify the factors in their work that
affects the behavior of consumers. These issues have been identified as for the
marketing effort, socio-cultural influence, emotional factor, the psychological factors
and privacy factors, to the experience, the purchase and post -purchase decisions.
They also show that consumers are affected by various psychological factors, such as
perception, motivation, personality, attitudes and emotions.
According to Changchit, Douthit, and Hoffmeyer (2005)

16

Changchit, Douthit, and Hoffmeyer (2005) Conducted a study on online shopping

was related to online some interesting factors which is about to effect of online
shoppers when they purchase from a website, more or less feedback to buy or to the
website. They have been discussed the success of the business online burden on their
ability to attract and retain for customers to their customers are able to better use of
their time than the prices and to get any type of product information through internet.
With the number of hosts on the Internet having full-fledged from 1.7 million in
1993 to 110.0 million in 2001 (Ruthkowski, 2000).
Kotlar P, Keller et al., (2009) advocate that consumer shop online because it is
convenient. Gordan A and Bhowan K, (2005) examined factors that encouraging
online shopping

Convenience (no traffic,crowds,24 hr. access)

Better Product Selection

Useful Delivery Mode

According to Hirsst Alan and Omar Ogenyi, (2007)

Hirsst Alan and Omar Ogenyi, (2007) stated that convenience, usefulness, ease of use
and efficiency are positive characteristics of online shopping. Jush and Ling,(2012)
suggested that e-commerce experience, product perception and customer service
have important relationship with attitude towards e-commerce purchases through
online shopping. According to them consumers who purchase online are more
likely to buy clothes, book and make travel booking.

ONLINE SHOPPING ADVANTAGES

According to Jush and Ling, (2012)
17

Jush and Ling, (2012) added that customers can enjoy online shopping for 24 hour
per day. Consumers can buy any goods and services anytime at everywhere. Online
shopping is more user friendly compare to in store shopping because consumers can
just accomplish his desires just with a click of mouse without leaving their home.
Forouhandeh Behnam et al., (2011) demonstrated Warrant, Assurance, Website
maneuverability and Enjoyment as factors that perceived as the online shopping
benefits. Alba et.al, (1997), Brengman et al., (2005), Eastlick and Feinberg, (1999),
Foucault and Scheufel, (2002), Karayanni, (2003) stated,

That online shopping has various advantages as compared to shopping at a physical

shop like,

24/7 shopping

Saves time

Comparison shop

Price comparison

Third party shopping sites keeping merchants competitive hence, offering the best
products and prices. So, it not only encourages customer for online shopping but also
helps in relationship management.

Consistency between advertised price and site price.

Sometimes no cost delivery even to third party receiver

Ease in merchandise cancellation or return

Sometimes tracking of shipping available

18

Large online shopping site offering store comparison and

sometimes no taxes

According to Kim Youn Kyung , (2002)

Kim Youn Kyung,(2002) stated that shopping malls and internet are major
competitor, providing multiple dimensions of consumer value .The consumer value
includes four components- efficiency, excellence, play and aesthetics. Consumer
value analysis sheds light on the complex issues surrounding the viability of shopping
malls against the competition from internet. Online shopping enhances the experience
of shopping, area of shopping, comfort level and products variety. It widens the
customers imagination towards products and inducing them to looking for varieties
and satisfying their hunger for fun and pleasure.
ONLINE SHOPPING HURDLES
According to Saprikis Vaggelis.,(2010)

Saprikis Vaggelis et al., (2010) classified the online shopping problems were in two
categories; general problems and after-sales problems. Online shopping problems are
great barriers to the online purchase intention of customers. General problems
includes possibility of having credit card data intercepted, the difficulty to confirm
the reliability of the provided products and the possibility to buy a product that it
would not value as much as customer pay for it. After-sales problems, involved
difficulty to change defective product with a new one and products guarantee are not
assured. Choi and Lee (2003), Cyr et al., (2005), Know and Lee(2003), Laroche et.al
(2005), McKnight et.al(2002), Verhagen et al., (2006) stated that online shopping has
various disadvantages as compared to shopping at a physical shop like,

Lack of touch and feel of merchandise

19

Delivery time customers dont have the immediate satisfaction of

receiving the product when they buy it since they have to wait for it
to be delivered.

Shipping charges- customers usually have to pay shipping charges,

which may increase the overall cost of what they are purchasing.

Shipped returns-Returns can be more of a hassle in online shopping

because consumers have to pack up the product, ship it back, and wait
for the seller to receive and process the return before consumers can
get their product exchanged or refunded.

Lack of close quality examination

Security concerns- it can be difficult to tell whether the website is

secure or not. If the site is not secure or is fraudulent online consumers
can potentially open their self-up to identity theft.

Privacy concerns, if a site doesnt have a comprehensive privacy

policy, it is impossible for consumers to know who has access to their
information, and whether their information is protected or sharedwith
third parties. Information sharing could lead to spam, or even identity
theft.

Lack of personal attention from a salesman.

Unable to try the merchandise on (especially clothing).

More chances to encounter fraud (disappearance of shopping site).

More chances for mistakes in ordering the wrong item, slightly higher
exposure of credit card security.

Verification of credit card owner less rigorous (physically one can ask
for other identifications).
20

2.3

Customer satisfaction towards amazon.com

According to Szymanski and Hise,(2000)

Amazon is founded by Jeff Bazos in 1994 in Washington and the website has
launched in 1995. They started with an online book store. Amazon also provided to
consumers to order hart-to-find books as easily as best sellers (Postrel, 1996; cited in
Mellahi and Johnson, 2000; 448). Amazon also developed systems; such as 'Search
inside the Book' and '1-click Shopping' (Amazon, 2012) whick make the company
the pioneer of innovations. Being first in the market provided to Amazon.com a
trusted brand name (Economist, 2000; cited in Mellahi and Johnson, 2000; 449).
Consumer satisfaction from the online experience and creating brand or site loyalty
are critically important for companies that want to have a long run presence on the
Web. There are two approaches taken to induce loyalty into consumers in an online
context. One approach is to focus on concrete factors. For example, creating a
convenient and well-designed online store and offering secure transactions are the
keystones of satisfying e-consumers (Szymanski and Hise, 2000).

According to Lin (2003)

Lin (2003) states that for companies which deal with online services, in order to be
confirmed and accepted by the customers, they need to provide the greatest delivered
value so customers may see it as advantage and stay loyal to them. Companies can
measure this value by looking at customer satisfaction, and factors that affect this
satisfaction are: customer need, value and cost.
According to Mostaghel (2006)
21

Mostaghel (2006) argues that Heskett et al. (1994) highlights consumer satisfaction as
essential to gain better financial performance of services in company, which is the
second most important thing for them, after gaining a profit. Companies saw the fast
development of technology as a chance to achieve customer satisfaction and loyalty
much easier and with lower costs. Many research studies showed that e-commerce
has, significantly, changed the way in which business operates.

3.

RESEARCH METHODOLOGY
3.11 Research Design Exploratory

3.1.2

Qualitative Research
a. In-depth interview
b. Focus Group interview

3.1.3

Secondary Data

3.2.1 Research Design - Conclusive

Conclusive research
Descriptive research
Cross sectional research design
Single cross sectional design

22

3.2.2 Sampling design

(a) Target population definition

Target population:

Sampling unit:

All customers of Amazon.com

A customer of Amazon.com
Sampling element:
A customer of Amazon.com

Sampling frame:

Extent:

Not available
Ahmedabad, Gujarat
Time:
2, February, 2016 26, April, 2016

(b)

Sampling method:
Non-probability sampling
Convenience sampling

(c)

3.2.3

Sample size determination:

100 Questionnaires

Scaling technique

Type of scaling technique:

Non-Comparative scaling technique
Likert scale

3.2.4

Questionnaires design
(4.a)

Question type:
Structure questionnaire

(4.b)

Structured question types:

(4.c)

Scaling, Multiple choice questions

Pre-testing of questionnaires:
It will be done with 10 respondents (online shoppers)
23

3.2.5

Data analysis software:

SPSS

3.2.6

Data analysis techniques:

Frequency distribution, Chi-square, Anova

3.2.7

Data collection tools:

Questionnaire

3.2.8

Data collection method:

Survey, personal

4.
4.1
4.1.1

DATA ANALYSIS AND INTERPRETATION

Demographics
Gender

Gender

Valid

male
female
Total

Frequency

Percent

Valid Percent

Cumulative
Percent

62
38
100

62.0
38.0
100.0

62.0
38.0
100.0

62.0
100.0

24

 Pie chart

male

female

Interpretation
The above pie chart as demographic character of the study shows that the male
respondents are 62% and the female respondent are 38%. Male respondents are
more than female respondents.

4.1.2 Age
Age

Valid

Frequency

Percent

Valid Percent

Cumulative
Percent

15-25

74

74.0

74.0

74.0

26-35
36-45
above 45
Total

12
9
5
100

12.0
9.0
5.0
100.0

12.0
9.0
5.0
100.0

86.0
95.0
100.0

25

 Pie chart
Age

15 - 25

26 - 35

36 - 45

Above 45

Interpretation
The above pie chart is a representation of the respondents age in order to identify
the demographic details for the study. It shows that the age group of 15 to 25
years has one third, that is (74%) of total respondents. Perhaps the other three
categories of respondents consist only (26%) of total respondents.

4.1.3 Marital status

Marital status

Valid

Frequency

Percent

Valid Percent

Cumulative
Percent

married

25

25.0

25.0

25.0

unmarried
Total

75
100

75.0
100.0

75.0
100.0

100.0

Pie Chart
26

Marital Status

Married

Unmarried

Interpretation
The above pie chart of marital status as demographic character of the study
shows that the respondent group of unmarried people is more than the group of
married respondents. The group of unmarried respondents is (75%) and the
respondent group of married is only (25%) of the total respondents.

4.1.4

Occupation
Occupation

Valid

Frequency

Percent

Valid Percent

Cumulative
Percent

student

59

59.0

59.0

59.0

business
salaried
others
Total

10
27
4
100

10.0
27.0
4.0
100.0

10.0
27.0
4.0
100.0

69.0
96.0
100.0

Pie Chart
27

Occupation

Student

Buisness

Salaried

Other

Interpretation
The above pie chart of occupation as demographic finding for the study shows
that students group is more than half of the total respondent (59%).As well the
respondent group of salaried takes the second position by having (27%) of the
respondents, followed by the business group with (10%) of the respondents,
whereas (4%) of the respondents falls under the other category.

4.1.5

Annual Income
Annual income

Valid

below 2,50,000
2,50,001-5,00,000
5,00,001-7,50,000
above 7,50,000
Total

Frequency Percent

Valid Percent Cumulative

Percent

82
12
4
2
100

82.0
12.0
4.0
2.0
100.0

82.0
12.0
4.0
2.0
100.0

82.0
94.0
98.0
100.0

Pie Chart
28

Annual Income

Below 2,50,000

2,50,001 - 5,00,000

5,00,001 - 7,50,000

Above 7,50,000

Interpretation
The above pie chart of income as demographic character of the study shows that
the income group of category 1 that is Below 2, 50,000 has more than one third of
the respondents by having (82%). Category 2 has (12%) of respondents who falls
under the income level of 2, 50,000 5, 00,000. The respondents having income
group of 5, 00,000 7, 50,000 has (4%), where the rest (2%) of the respondents
has the income level of above 7, 50, 000.
4.1.6

Have you purchase product online from Amazon.com

Have you purchase products from amazon.com

Valid

Frequency

Percent

Valid Percent

Cumulative
Percent

Yes

97

97.0

97.0

97.0

No
Total

3
100

3.0
100.0

3.0
100.0

100.0

Pie Chart

29

Have you purchased products online from Amazon.com?

Yes

No

Interpretation
The above question was taken into consideration as a confirmatory question to
confirm the respondents appropriateness for the study. To serve the above
purpose this question was asked in dichotomous format with only two options. By
this we could find out that (97%) of the respondents have purchased online in
amazon.com whereas the remaining (3%) of the respondents are not.

4.1.7

How often do you shop on Amazon.com?

How often do you shop on amazon.com

Valid

more than once a week

more than once a month
more than once a year
depends on when you
want to buy something
Total

Frequency Percent

Valid Percent Cumulative

Percent

9
13
11
67

9.0
13.0
11.0
67.0

9.0
13.0
11.0
67.0

100

100.0

100.0

9.0
22.0
33.0
100.0

30

 Pie Chart
How often do you shop on Amazon.com

More than once a week

More than once a month
More than once a year
Depends on when you
want to buy something

Interpretation
The above pie chart represents the frequency of purchase that the respondents
made online in concern with amazon.com. 67% of the respondents purchase
online when they want to buy something. 13% of the respondents buy stuffs
online in more than once a month, 11% of respondents purchase more than once a
year. Whereas 9% of the respondents purchase often that is more than once a
week.

4.2

Factors that affect online buying behavior

4.2.1

Shopping on amzon.com is more convenient than retail stores.

Shopping on amazon.com is more convenient than retail store.
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

strongly disagree

2.0

2.0

2.0

Disagree

13

13.0

13.0

15.0

Neutral

29

29.0

29.0

44.0

Agree

35

35.0

35.0

79.0

strongly agree

21

21.0

21.0

100.0

31

Total

100

100.0

100.0

Bar Chart

Interpretation
The response on the above mentioned question has been found that 35% of the
respondents agree that shopping on amazon.com

is more convenient than

retail store. In that almost 21% people strongly agree. On the other hand 2%
of the respondents strongly disagree as like 13% of the respondent who
4.2.2

disagree with statement. And 29% of the respondents say neutral.

Shopping on amzon.com is easy to use

Shopping on amazon.com is easy to use

Frequency Percent
strongly
disagree
Disagree
Valid Neutral
Agree
strongly agree
Total

1.0

Valid
Percent
1.0

8
15
45
31
100

8.0
15.0
45.0
31.0
100.0

8.0
15.0
45.0
31.0
100.0

Cumulative
Percent
1.0
9.0
24.0
69.0
100.0

32

 Bar Chart

Interpretation
The responses on the above question have been found agree side as it has 76%
consist of strongly agree and agree side. (45% respondents agree and 31%
respondents strongly agree). Moreover 15% respondent opt neutral and (8%)
of the respondent stated disagree also (1%) of respondent was disagree.

4.2.3

I get better discounts when I shop on amozon.com

I get better discounts when I shop on amazon.com
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

strongly disagree

4.0

4.0

4.0

Disagree

12

12.0

12.0

16.0

Neutral

29

29.0

29.0

45.0

Agree

37

37.0

37.0

82.0

strongly agree

18

18.0

18.0

100.0

Total

100

100.0

100.0

33

 Pie Chart

Interpretation
37% of the respondents are agree with the above statement that they get better
discounts when they shop on amazon.com also 18% of the respondents strongly
agree to it. Here 29% of the respondents stays neutral where 16% consist of
strongly disagree and disagree (12% disagree and 4% of the respondent strongly
disagree) with the statement.

4.2.4

I can save time by shopping on the amazon.com

I can save time by shopping on the amazon.com
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

strongly disagree

2.0

2.0

2.0

Disagree

5.0

5.0

7.0

Neutral

22

22.0

22.0

29.0

Agree

42

42.0

42.0

71.0

strongly agree

29

29.0

29.0

100.0

Total

100

100.0

100.0

34


Bar Chart

Interpretation
From the above Bar chart we can find that (71%) of the respondents agree and
strongly agree (42% agree and 29% strongly agree) with the statement that they
can save time by shopping in amazon.com, 22% of the respondents stat neutral.
Around 7% of the users are not convinced with this statement which resulted in
5% of users disagreed and 2% of the users strongly disagreed.
4.2.5

Online shopping provides more variety of products.

35

Online shopping provides more variety of products

Frequency Percent Valid
Percent
strongly
1
1.0
1.0
disagree
Disagree
8
8.0
8.0
19
19.0
19.0
Valid Neutral
Agree
51
51.0
51.0
strongly agree
21
21.0
21.0
Total
100
100.0
100.0

Cumulative
Percent
1.0
9.0
28.0
79.0
100.0

Bar Chart

Interpretation
The above Bar chart and the table represent that (51%) of the amazon respondents
agreed and (21%) users are strongly agree that amazon provide varieties of
products but (9%) of the users totally disagree and strongly disagree with this
statement whereas (19%) of the users stays neutral they neither find new varieties
4.2.6

nor disagree saying there is no varieties.

I can get detailed product information on Amazon.com

36

I can get detailed product information on amazon.com

Frequency Percent Valid
Percent
Disagree
10
10.0
10.0
Neutral
27
27.0
27.0
Agree
44
44.0
44.0
Valid
strongly
19
19.0
19.0
agree
Total
100
100.0
100.0

Cumulative
Percent
10.0
37.0
81.0
100.0

Bar Chart

Interpretation
63% of the respondents from the total respondents strongly agree and agree that
they get detailed product information from amazon.com which satisfies them, in
contradictory 10% of the respondents stand against it by stating their
disagreement. Moreover 27% of the respondents give their opinion as neutral.
4.2.7

When shopping on amazon, I am satisfied with delivery system

37

When shopping on amazon, I am satisfied with delivery system

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

strongly disagree

5.0

5.0

5.0

Disagree

13

13.0

13.0

18.0

Neutral

31

31.0

31.0

49.0

Agree

37

37.0

37.0

86.0

strongly agree

14

14.0

14.0

100.0

Total

100

100.0

100.0

Bar Chart

Interpretation
(51%) of the respondents from the total respondents are satisfied with the delivery
system of amazon.com, but 18% of the respondents (13% disagree & 5% strongly
disagree) with it, also a bigger group consist of (31%) neither of the respondents
4.2.8

neither support nor against it by giving their votes to neutral option.

I am satisfied with the return policy of amazon.com

38

I am satisfied with the return policy of amazon.com

Frequency
Percent

Valid

strongly disagree
Disagree
Neutral
Agree
strongly agree
Total

11
17
32
30
10
100

11.0
17.0
32.0
30.0
10.0
100.0

Valid Percent
11.0
17.0
32.0
30.0
10.0
100.0

Cumulative
Percent
11.0
28.0
60.0
90.0
100.0

Bar Chart

Interpretation
From the above table and bar chart we can identify that (40%) of the respondents
are satisfied with the return policy system of amazon.com, on the other hand
(28%) of the respondents strongly disagree (11%) and disagree (17%) with it.
(32%) neither of the respondents said yes or no to the statement by choosing
4.2.9

neutral.
I feel that my credit card details may be compromised and misused if I shop on
amazon.com

39

I feel that my credit card details may be compromised and misused if i shop on
amazon.com
Frequency
Percent
Valid Percent
Cumulative
Percent
strongly disagree
16
16.0
16.0
16.0
Disagree
25
25.0
25.0
41.0
Neutral
37
37.0
37.0
78.0
Valid
Agree
14
14.0
14.0
92.0
strongly agree
8
8.0
8.0
100.0
Total
100
100.0
100.0

Bar Chart

Interpretation
The response of the above mentioned question has been found altogether large groups
(41%) of people totally disagree with the statement that means they found their credit
card details are well secured and privacy terms are also appreciable. But (22%) of the
respondents are strongly agreed and agreed to it, probably by their past experience they
might have graded it. In other case, 37% of the respondents are in the neutral position.
4.2.10
I trust the security of payment methods on amzon.com
I trust the security of payment methods on amazon.com

40

Valid

strognly disagree
Disagree
Neutral
Agree
strognly agree
Total

Frequency Percent

Valid Percent Cumulative

Percent

4
11
33
41
11
100

4.0
11.0
33.0
41.0
11.0
100.0

4.0
11.0
33.0
41.0
11.0
100.0

4.0
15.0
48.0
89.0
100.0

Bar Chart

Interpretation
The above chart and the table represent that the (52%) of the respondent strongly
agree and agree with the payment modes of the amazon.com whereas 15% of the
respondents (11% disagree and 4% respondents strongly disagree) with the same
statement. Remaining 33% of the respondents stay neutral by stating they neither
agree nor disagree with the statement.

4.2.11

Amazon.com provides a better quality product

Amazon.com provides a better quality product

41

Frequency Percent

Valid

strongly disagree
Disagree
Neutral
Agree
strongly agree
Total

4
9
38
37
12
100

4.0
9.0
38.0
37.0
12.0
100.0

Valid Percent Cumulative

Percent
4.0
4.0
9.0
13.0
38.0
51.0
37.0
88.0
12.0
100.0
100.0

Bar Chart

Interpretation
Better quality of products by amazon.com satisfies its customer, almost (49% of the
respondents strongly agree and agree with this statement). Moreover 38% of the
respondents stays neutral, whereas (13%) of the respondents reacts negatively to this
statement by responding strongly disagree and disagree with it, because of their
dissatisfaction with the product quality.
4.2.12

I get better service when shopping on amzon.com than traditional retail store.

42

I get better service when shopping on amazon.com than traditional retail store

Valid

strongly disagree
Disagree
Neutral
Agree
strongly agree
Total

Frequency

Percent

Valid Percent

Cumulative
Percent

7
15
37
40
1
100

7.0
15.0
37.0
40.0
1.0
100.0

7.0
15.0
37.0
40.0
1.0
100.0

7.0
22.0
59.0
99.0
100.0

Bar Chart

Interpretation
41% of the respondents from the total respondents accept that amazon provides better
services than retail store, whereas 37% of the respondents neither agree nor disagree
43

with the services. But 23% of the respondents disagree with the statement, probably
because they wouldnt have found the service of amazon better than a retail store. In
that (15% of respondents disagree and the rest 7% are strongly disagree).

4.2.13 It is easy to choose and make comparison with other products while shopping
on amazon.com
It is easy to choose and make comparison with other products while shopping on
amazon.com
Frequency Percent
Valid Percent Cumulative
Percent

Valid

strongly disagree
Disagree
Neutral
Agree
strongly agree
Total

Bar Chart

Interpretation

2
10
33
43
12
100

2.0
10.0
33.0
43.0
12.0
100.0

2.0
10.0
33.0
43.0
12.0
100.0

2.0
12.0
45.0
88.0
100.0

More than half of the respondents (55%) of the sample group agree and strongly
agree with the statement that it is easy to make a choice in amazon by having a
44

comparison with other online products. Same time (12%) of the people found it not,
and that has resulted in disagreement. Another side 33% of the respondents stays
neutral by not commenting on it. That is what stated in the Bar chart and in the table
above.
4.2.14 I am satisfied with variety of mode of payment on amazon.com
I am satisfied with variety of mode of payment on amazone.com
Frequency Percent

Valid

Disagree
Neutral
Agree

8
31
47

strongly agree 14
Total
100

Bar Chart

Interpretation

8.0
31.0
47.0

Valid Percent Cumulative

Percent
8.0
8.0
31.0
39.0
47.0
86.0

14.0
100.0

14.0
100.0

100.0

Variety of mode of payments on amazon.com satisfied 61% of its users, 31% of the
respondents felt it is neutral and 8% of the respondent hasnt found any varieties in

45

the mode of payment while purchasing online. It has been clearly shown in the above
Bar chart and table.

4.2.15

I shop on amazon, when I can reduce my efforts in travelling, walking, parking

waiting and as much as possible.
I shop on amazon, where I can reduce my efforts in travelling, walking, parking,
waiting and carrying as much as possible.
Frequency
Percent
Valid Percent
Cumulative
Percent
strongly disagree
3
3.0
3.0
3.0
Disagree
13
13.0
13.0
16.0
Neutral
24
24.0
24.0
40.0
Valid
Agree
39
39.0
39.0
79.0
strongly agree
21
21.0
21.0
100.0
Total
100
100.0
100.0

Bar Chart

Interpretation

46

From the above Chart and table we can sort out that 60% of the respondents strongly
agree (21%) and agree (39%) that amazon reduce the efforts customers like travelling,
walking, parking, waiting, and carrying by providing door delivery system.
Whereas 16% of the respondents didnt feel so, they have disagreed with the state
ment, meanwhile 24% of the respondents result were neutral.
4.2.16

It is not easy to cancel orders when shopping on amazon.com

It is not easy to cancel orders when shopping on amazon.com

Strongly disagree

Valid

Disagree
Neutral
Agree
Strongly disagree
Total

Frequency

Percent

Valid Percent

9.0

9.0

40
26
21
4
100

40.0
26.0
21.0
4.0
100.0

40.0
26.0
21.0
4.0
100.0

Cumulative
Percent
9.0
49.0
75.0
96.0
100.0

Bar Chart

47

Interpretation
The response for the above mentioned question from the respondent Is, 49% of the
respondents disagree that it is not difficult to cancel orders when it comes to the case
of amazon. But one fourth of the respondents (25%) agree with this statement.
Moreover 26% of the respondents voted neutral for it.

4.2.17

If I shop online I cannot wait till the product arrives.

If I shop online I cannot wait till the product arrives
Frequency Percent

Valid

strongly disagree
Disagree
Neutral
Agree
strongly agree
Total

Bar Chart

Interpretation

2
22
36
36
4
100

2.0
22.0
36.0
36.0
4.0
100.0

Valid Percent Cumulative

Percent
2.0
2.0
22.0
24.0
36.0
60.0
36.0
96.0
4.0
100.0
100.0

48

40% of the total respondents reveal that they cannot wait until the product arrives in
hand, once after purchasing products online. But 24% of the respondents say that it is
not the same case with them, so they disagree with it. Remaining, 36% of the
respondents stay neutral.
4.2.18

I might not get what I ordered through amazon.com

I might not get what I ordered through amazon.com
Frequency Percent

Valid

strongly disagree
Disagree
Neutral
Agree
strongly agree
Total

Bar Chart

Interpretation

7
35
35
20
3
100

7.0
35.0
35.0
20.0
3.0
100.0

Valid Percent Cumulative

Percent
7.0
7.0
35.0
42.0
35.0
77.0
20.0
97.0
3.0
100.0
100.0

49

From the above chart and table we can identify that 23% of the respondents stated
that sometimes they are not receiving the actual product which they ordered for. 42%
of the respondents disagree with it, 35% of the respondents neither finding any fault
nor supporting the product delivery.

4.2.19

Getting good after sales service is time taking and difficult for online purchases on
amazon.com
Getting good after sales service is time taking and difficult for online
purchases on amazon.com
Frequency Percent
Valid Percent Cumulative
Percent
strongly disagree 4
4.0
4.0
4.0
Disagree
24
24.0
24.0
28.0
Neutral
32
32.0
32.0
60.0
Valid
Agree
28
28.0
28.0
88.0
strongly agree
12
12.0
12.0
100.0
Total
100
100.0
100.0

Bar Chart

50

Interpretation
The response on the above mentioned question has been found neutral side as it has
32%. 40% of the respondent has replied strongly agree (12%) and agree (28%) to this
statement. On the other hand, 28% of the respondents strongly disagree (4%) and
disagree (24%) to it. The above Bar chart and table is the clear representation of it.
Are you satisfied with the services of amazon.com

4.2.20

Are you satisfied with the services of amazon.com

Valid

strongly
dissatisfied
Dissatisfied
Neutral
Satisfied
strongly satisfied
Total

Frequency Percent

Valid Percent Cumulative

Percent

3.0

3.0

3.0

10
27
48
12
100

10.0
27.0
48.0
12.0
100.0

10.0
27.0
48.0
12.0
100.0

13.0
40.0
88.0
100.0

Bar Chart

51

Interpretation
From the above diagram and table we can interpret that more than half of the
respondents (60%) are satisfied with the services of amazon (48% satisfied & 12%
strongly satisfied).Moreover, 27% of the respondents are neutral. On the other hand
13% of the respondents strongly disagree and disagree to it.

4.2.21

Will you recommend amazon.com to others

Will you recommend amazon.com to others

Valid

yes
no
Total

Frequency

Percent

Valid Percent

Cumulative
Percent

78

78.0

78.0

78.0

22
100

22.0
100.0

22.0
100.0

100.0

Pie Chart
will you recommand amazon.com to others

Yes

No

Interpretation
From the above graph and table we can interpret that 78% of the respondents are
recommending amazon.com to others because of their finest experience. In
52

contradictory, 22% of the respondents do not prefer to suggest amazon.com to others

because of their dissatisfaction with it.

4.3

Mean and Standard deviation of variable

Descriptive Statistics
N
Shopping on amazon.com is 100
more convenient than retail
store.
Shopping on amazon.com is 100
easy to use
I get better discounts when i 100
shop on amazon.com
I can save time by shopping 100
on the amazon.com
Online shopping provides 100
more variety of products
I can get detailed product 100
information on amazon.com
When shopping on amazon,i 100
am satisfied with delivery
system
I am satisfied with the return 100
policy of amazon.com
I feel that my credit card 100
details may be compromised
and misused if i shop on
amazon.com
I trust the security of 100
payment
methods
on
amazon.com
Amazon.com provides a 100
better quality product

Mean
3.6000

Std. Deviation
1.02494

3.9700

.93695

3.5300

1.04886

3.9100

.94383

3.8300

.88825

3.7200

.88854

3.4200

1.04621

3.1100

1.14499

2.7300

1.13578

3.4400

.96735

3.4400

.95685

53

100

3.1300

.92829

100

3.5300

.90403

100

3.6700

.81718

100

3.6200

1.05198

It is not easy to cancel orders 100

when
shopping
on
amazon.com
100
If i shop online i can not wait
till the product arrives

2.7100

1.02784

3.1800

.89194

100

2.7700

.95193

100

3.2000

1.06363

100

3.5600

.93550

I get better service when

shopping on amazon.com
than traditional retail store
It is easy to choose and make
comparison
with
other
products while shopping on
amazon.com
I am satisfied with variety of
mode of payment on
amazone.com
I shop on amazon, where i
can reduce my efforts in
travelling, walking, parking,
waiting, and carrying as
much as possible.

I might not get what i

ordered through amazon.com
Getting good after sales
service is time taking and
difficult for online purchases
on amazon.com
Are you satisfied with the
services of amazon.com
Valid N (list wise)

100

54

4.4

Chi square

Annual income * How often do you shop on amazon.com Cross tabulation

Count
How often do you shop on amazon.com
more
than more
than more than Depends on
once a week once a month once a year when
you
want to buy
something
below
7
12
9
54
2,50,000
2,50,0010
1
1
10
5,00,000
Annual
income
5,00,0010
0
1
3
7,50,000
above
2
0
0
0
7,50,000
9
13
11
67
Total

Total

82
12
4
2
100

4.4.1
Chi-Square Tests

Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases

Value

df

Asymp. Sig. (2-sided)

23.894a
15.067
.990
100

9
9
1

.004
.089
.320

a. 11 cells (68.8%) have expected count less than 5. The minimum expected count is .18.

55

4.4.2
Symmetric Measures

Nominal by Nominal

Value

Approx. Sig.

Phi

.489

.004

Cramer's V

.282
100

.004

N of Valid Cases

Interpretation
From the above report conducted we conclude that, respondents having average income less
than Rs. 2.5 lacs prefer to purchase more from Amazon.com, hence we reject the null
hypothesis and accept the alternative hypothesis

56

4.5

Independence sample T-test

Group Statistics
Gender N
I get better discounts Male
62
when
i
shop
on
Female 38
amazon.com

Mean

Std.Error Mean

3.4839

Std.
Deviation
1.06728

3.6053

1.02771

.16672

.13554

Independent Samples Test

Levene's t-test for Equality of Means
Test for
Equality
of
Variances
F
Sig. t
df
Sig.
Mean
Std. Error 95%
(2Difference Difference Confidence
tailed)
Interval of the
Difference
Lower Upper
Equal
.122 .728 -.56 98
.577 -.12139
.21684
-.5517 .30892
0
0
I get better variances
assumed
discounts
when i shop Equal
-.56 80.695 .574 -.12139
.21486
-.5489 .30614
on
variances
5
3
amazon.com not
assumed

Interpretation
From the above report we conclude that from the research conducted we found that female
respondents are less attractive than male respondent when question asked regarding the
discounts and offers that are offered by Amazon.com so we reject the alternative hypothesis
and accept null hypothesis.
57

4.6

Annova Test

Descriptives
Online shopping provides more variety of products
N Mean Std.
Std.
95%
Confidence Minimum Maximum
Deviation Error
Interval for Mean
Lower
Upper
Bound
Bound
.10496 3.7097
4.1281
1.00
5.00
15-25 74 3.9189 .90291
.19300 3.1586
4.0081
2.00
4.00
26-35 12 3.5833 .66856
9

3.7778 .83333

.27778 3.1372

4.4183

2.00

5.00

3.2000 1.09545

.48990 1.8398

4.5602

2.00

4.00

.08883 3.6538

4.0062

1.00

5.00

ANOVA
Online shopping provides more variety of products
Sum of Squares Df
Mean Square
Between Groups 3.324
3
1.108
74.786
96
.779
Within Groups
78.110
99
Total

F
1.422

Sig.
.241

36-45
above
45
Total

100 3.8300 .88825

Interpretation
From the above research conducted we concluded that the respondents having age between
15-25 prefer to purchase more through Amazon.com. hence we conclude that we accept the
null hypothesis and reject the alternative hypothesis.

58

59

5. CONCLUSION
We have taken the research study on Factors affecting online shopping behavior" for a
period of 45 days and we have got the good chance to know about the customer attitude
towards using amazon to purchase products online. After studying about the factors which
affect the behavior of online shoppers, we are concluding some of the result from it, which is
under:
60% of the respondents are fully satisfied with the service of amazon.com and with its
functions. They are strongly convinced that amazon.com provides them better offers,
discounts, varieties in products and detailed product information etc,.which helps customers
purchase products conveniently whenever they want, and wherever they are by providing
better delivery system.
Moreover amazon.com functions as a customer base service focusing on customer
satisfaction, where it also concerns on customer privacy about their credit card details and
different mode of payments they choose for purchasing. Well, it also provides a unique
service which we rarely find in retail stores, that is return policy and even to an extent to
cancel orders when the customer did not want to purchase the product which they have
ordered earlier. Like other services, amazon does have it own loop holes; most of the
respondents suggested amazon to improve its product quality even though they are satisfied
with the other features of amazon.com
On the basis of our study, we have found that 78% of the amazon users recommends it to
others. It means customers are satisfied and they are likely to be the customers of
amazon.com. So with that we can interpret that amazon.com has a greater scope in future in
midst of online shoppers. Nowadays peoples are attracted towards the unique facilities and
services of firms, in such case amazon.com can reach heights. If it keeps moderating
according to customer choice and preference, there is an opportunity where more and more
people adapt and become customers of amazon.

6. SUGGESTIONS

60

 Quality of product needs to be improved, to make customers feel highly satisfied.

Delivery system has become common in recent days; to differentiate amazon delivery
system from others, its better to provide faster delivery than other competitors.
Sometimes customers face problems while cancelling orders on product which they
have ordered before, implementing new ideas on this aspect would satisfy customer.
At times customers are highly dissatisfied when they did not get the actual product
which they have ordered for, this may lead the customer to have a negative opinion.
Actual product needs to be delivered.

More varieties should be added when it comes to the case of product comparison, this
may stop customer from switching to other online shopping services.

7. LIMITATION
Area:
61

The area is limited to the Ahmedabad city only.

Sample size:
The sample size is 100 only. Due to this we will not get the proper results.
Sampling technique:
We have choosen convenience technique for this study. But other sampling methods may
give more accurate result than it.
Biasness:
The findings are based solely on the information provided by the respondents and there is a
possibility of biased results and knowledge we have regarding the application of different test
and different questions.
Past Research
As on this topic earlier many research have been conducted so there is very less chance to
find the pitfalls from the same.

8. BIBLIOGRAPHY
62

Shaw, M., J. (2006), An introduction, E-commerce and the digital economy, New York:
M.E. Sharpe.
Kotler, P., Armstrong, G. (2012) , Principles of Marketing, New Jersey: Pearson Education.
Korper, S., Ellis, J. (2001), Setting the vision, The e-commerce book, building the e-empire,
San Diego: Academic Press.
Mostaghel, R., (2006). Customer satisfaction: service quality in online purchasing in Iran.
Tian, Y., Stewart, C., (2007). History of E-Commerce. Electron. Commerce. Concepts
Methodology. Tools Appl. Inf. Sci. Ref.
IJCSI International Journal of Computer Science Issues, Vol. 9, Issue 3, No 1, May 2012
ISSN (Online): 1694-0814 www.IJCSI.org
Brassington, F. & Pettitt, S. (2000), Principles of Marketing, 2nd Ed. Edinburgh Gate,
Pearson Education Ltd
Smith, D. A. & Rupp, T. W. (2003). Strategic online customer decision making: leveraging
the transformational power of the Internet Online Information Review 27: 6, 418 432.
Chuleeporn Changchit, Shawn J. Douthit, and Benjamin Hoffmeyer, (2005), Online
shopping; Company business management, Journal of Academy of Business and
Economics, Vol. 5 (3).
International Journal of Advance Research in Computer Science and Management Studies
Volume 2, Issue 12, December 2014
Kotler, P., Keller, K. L., Koshy, A. and Jha, M. (2009), Marketing Management, 13th
Edition, Prentice Hall, Inc., Upper Saddle River, New Jersey.
Hirst, A. and Omar, O. (2007), Assessing Womens Apparel Shopping Behaviour on the
Internet, Journal of Retail Marketing Management Research, 1(1), 2007, 32-40.
Jush, Z. M. and Ling, G. H. (2012), Factors Influencing Consumers Attitude towards Ecommerce Purchases through Online Shopping, International Journal of Humanities and
Social Science, 2(4), 2012, 223-230.
Forouhandeh, B., Nejatian, H. and Ramanathan, K. (2011), The online shopping adoption:
barriers and advantages, In Proceeding of the 2nd International Conference on Business and
Economic Research, 2149-2171.
Foucault, B. E. and Scheufele, D. A. (2002), Web versus campus store? Why students buy
textbook online, Journal of Consumer Marketing, 19(5), 2002, 409-423.
63

Karayanni, D. A. (2003), Web-shoppers and non-shoppers: compatibility, relative advantage

and demographics, European Business Review, 15(3), 2003, 141-152.
Saprikis, V., Chouliara, A. and Vlachopoulou, (2010) Perceptions towards Online Shopping:
Analyzing the Greek University Students Attitude, Retrieved on April 18, 2013, from
http://www.ibimapublishing.com/journals/CIBIMA/cibima.html.
Choi, J. and Lee, K. H. (2003), Risk perception and e-shopping: a cross-cultural study,
Journal of Fashion Marketing and Management, 7(1), 2003, 49-64.
McKnight, D. H., Choudhury, V. and Kacmar, C. (2002), Developing and validating trust
measures for e-commerce: an integrative typology, Information Systems Research, 13(3),
2002, 334-359.
Verhagen, T., Meents, S. and Tan, Y. (2006), Perceived Risk and Trust Associated with
Purchasing at Electronic Marketplaces, In Serie Research Memoranda 0001, Faculty of
Economics, Business Administration and Econometrics, Free University of Amsterdam,
Amsterdam, Netherlands.
Mellahi, K., Johnson, M. (2000), 'Does it pay to be a first mover in e.commerce? The case of
Amazon.com, Management Decision, Vol.38, pp.445-452.
International Journal of Academic Research in Business and Social Sciences January 2012,
Vol. 2, No. 1 ISSN: 2222-6990
Zhou, L., Dia, L. and Zang, D. (2007). Online Shopping Acceptance Model-A Critical
Survey of Consumer factors in Online Shopping, Journal of Electronic Commerce Research,
8(1), 2007, 41-62.

9. ANNEXURE
Research Questionnaire
Respected sir/madam,
64

We, the students of CMS (MBA PROGRAME) of Ganpat University are conducting a
research on Factor affecting Online Buying Behaviour with Reference of Amazon.com.
In this regard, we would be highly grateful to you if you favour us by answering this
Questionnaire. We also assure you that the data provided by your will be kept confidential
and utilized for academic purpose only.
PART A: RESPOMDENT S DEMOGRAPHICS:Name
___________________________________________________________________________
Gender
(a) Male

(b) Female

Age
(a) 15 25

(b) 26 35

(c) 36 45

(d) above 45

Marital Status
(a) Married

(b) Unmarried

Occupation
(a) Student

(b) Salaried

(c) Professional

(d) other____________________

Annual Income
(a) Below 2, 50,000

(b) 2,50,001 5 00,000

(c) 5,00,001 7,50,000

(d) above 7,50,000

Have you purchase products from Amazon.com?

(a) Yes

(b) No

How often do you shop on Amazon.com?

(a) More than once a week

(b) More than once a month

(c) More than once a year

(d) depends on when you want to buy something

What kind of products do you purchase on Amazon.com? (Multiple choice)

(a) Books

(b) Clothes & shoes

65

(c) Electronics Products

(d) Music, Games & Software

(e) Other________________
PART B: ABOUT FACTORS AFFECTING ONLINE BUYING BEHAVIOUR
(please tick mark in the appropriate boxes)
Strongly
Disagree Neutra
Agree Strongly
No.
Statement
Disagree

1.

Agree

Shopping on Amazon.com is more

Convenient than Retail store.
Shopping on Amazon.com is easy to
use.
I can get better Discount by shopping
on the Amazon.com
I can save time by shopping on the
Amazon.com
Online shopping provides more
variety of products.
I can get detailed product
information on Amazon.com
When shopping on Amazon, I am
Satisfied with the delivery system.
I am satisfied with the return policy
of Amazon.com

It is a risk to give identification and

credit card information on Amazon.
I trust the security of payment methods
on Amazon.com

Amazon.com provides a better

Quality product.
I get better service when shopping
on Amazon.com than traditional retail
store.
It is easy to choose and make
comparison with other products
while shopping on Amazon.com
I am satisfied with variety of mode of
payment on Amazon.com

15.

I shop on Amazon, where I can reduce

my efforts in travelling, walking,
parking,
waiting, and carrying as much as
possible.

16.

It is not easy to cancel orders when

shopping on Amazon.com
If I shop online I cannot wait till the

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

13.
14.

17.

66

18.
19.
20.

product arrives.
I might not get what I ordered
through Amazon.com
Getting good after sales service is
time taking and difficult for online
purchases on Amazon.
The recommendation of Amazon.com
is very helpful

Are you satisfied with the services of Amazon.com?

1.
2.
3.
4.
5.

Strongly dissatisfied
Dissatisfied
Neutral
Satisfied
Strongly satisfied

Give suggestion, if any__________________________________________________

_____________________________________________________________________

=============================THANK YOU===========================

67