ITM BUSINESS SCHOOL,KHARGHAR

RESEARCH CONDUCTED TO FIND OUT THE FACTORS THAT

INFLUENCE CUSTOMER SATISFACTION DURING YOUR
PROCESS OF SHOPPING ONLINE

By:

Khushboo Shah (PGDM161810174)

Shantanu Mishra (PGDM161810145)

Marketing 2
 E-commerce industry overview:

India had an internet user base of about 354 million as of June 2015, and is
expected to cross 500 million in 2016. Despite being the second-largest user
base in world, only behind China (650 million, 48% of population),
the penetration of e-commerce is low compared to markets like the United
States (266 million, 84%), or France (54 M, 81%), but is growing at an
unprecedented rate, adding around 6 million new entrants every month. The
industry consensus is that growth is at an inflection point.

In India, cash on delivery is the most preferred payment method, accumulating

75% of the e-retail activities.[5] Demand for international consumer products
(including long-tail items) is growing much faster than in-country supply from
authorised distributors and e-commerce offerings.

In 2015, the largest e-commerce companies in India

were Flipkart, Snapdeal, Amazon,India, and Paytm

Ecommerce has a bright, shiny future. As of the present, the average consumer
spends at least $1,800 per year on the internet, a number that's only going to
increase as time progresses.

A prediction by Internet Retailer claims that online spending in the U.S. will
generate $355 billion in 2016 (eMarketer predicts $392.5 billion), a number
that's expected to exceed $400 billion per year by 2018.
Along the way, there will certainly be some trends that set new benchmarks and
that create a new baseline for ecommerce as a whole. Feeding this industry are
software solutions that have paved the way for a more enriched customer
experience and a more robust backend for retailers.

E-Commerce Companies:

Flipkart.
Amazon India.
Snapdeal.
PayTM.
Myntra.
 Ebay.
Shopclues.
Voonik
Abof (Aditya Birla Group)
External Environment

Future of e-commerce

Per the latest report by Forrester, the e-commerce sales across thirty retail
categories for the year 2014 is expected to be 294 billion dollars and this
number is expected to grow more, to around 414 billion dollars by the year
2018.

With the Internet, ready to provide a huge list of products and a lot of variety
too, a potential buyer can easily compare the prices and the items to make a
final choice with satisfaction and content. The easy access of mobile data
provides a great boost to the online sales in every aspect there is. And not only
for shopping purpose, mobile devices are also used highly for ordering food and
booking modes of travel.

US already has some very firm and established e-commerce sites like Amazon
and Walmart and Indian firms need to hurry up, if they want to catch up in this
race of online retailing. It needs to be mentioned here that Amazon opened shop
in India just last year and their CEO recently pumped in $2 billion into its India
operations, to wage a tough fight against the indigenous players like Jabong,
Myntra, Flipkart and Snapdeal in the Indian e-commerce domain. However, one
major reason that is deterring the emergence of a single leader is the diversity in
the country. India has always been spoilt by choices. Diversity among
customers, leads to diversity in demands, and to cater to that, diverse businesses
are needed.

The current Indian Modi government also seems to be ticking the right boxes, as
far as e-commerce is concerned. India has the means and opportunity to
increase the profit and revenue that is generated through the digital media.
Increasingly people are in the favour of buying a smartphone or a tablet and that
ensures a great future for India in the field of digital economy.
West v/s India : e-commerce

The trend of mega online

shopping festivals started in the West. From offline trends of Macys Day
parade and Black Friday to taking these festivals online, and creating further
new trends like Cyber Monday, US market has seen it all. The main reason
behind this is the frenzy that genuine offers create among the consumers.

India is still naive, even the three editions of the Great Online Shopping Festival
have not been able to make the impact they were expected to. The festive season
of Diwali is a time when Indians indulge in spending, and while the Indian
retailers were busy creating their respective versions of mega sales, US based
Amazon was the first to step on this opportunity with Diwali Dhamaka Sale.
Once again, Indian retailers need to learn what excites the customers

Research Objective

Industry: - e-commerce industry

Stage of Industry Life Cycle Growth

Objective:
I wanted to find out the factors that influence customer satisfaction during your
process of shopping online.
 Methodology Involved

Descriptive Research:

A primary survey was conducted with a sample size of 50. The primary purpose
to conduct the survey was to study the habit of people towards online shopping
and the drivers that influence the buying behaviour. The methodology involved
studying the data thoroughly and then drawing conclusions on consumption
patterns that indicate the habit of consumers towards the e-commerce
convenience through statistical analysis. The statistical tools used were pie
charts & bar charts,

Sample selection:

The target sample is people aged between 15 to 30 (primary) and 30 to 50

(secondary). This survey is directed towards high school and college students,
and young working professionals. The sample size is 50 people from both the
primary and secondary target groups. Due to geographical constraints, it wasnt
possible to get the questionnaire filled by other age groups. The major part of
survey has come from the people lying in the age bracket of 20 to 30 years of
age. The data has been gathered over a period of 1 week (February 2017).

Sample questionnaire:
All the information will be kept confidentially. Please help me in this research
project. Thank you!

Email address *
 What is your name? *

What is your Gender? *

o Male

o Female

What is your age? *

o 15-20

o 15 - 25

o 26 - 35

o 35 - 45

o 45 - 55

o > 55

o Other:

What is your current degree of education? *

o Under Secondary School

o Secondary School

o High School

o Bachelor Degree

o Masters Degree/MBA

o Above Masters Degree

o Other:
 What profession do you belong to? *

o Student

o Businessman

o Housewife

o Service

o Other:

What is your monthly income?

o Less than Rs. 2000

o Rs 2000 to Rs. 5000

o Rs. 5000 to Rs. 10000

o Rs. 10000 to Rs. 40000

o Above Rs. 40000

How much time do you spend on the internet every day? *

o Below 1 hour

o 1 hour

o 2-3 hours

o 3-6 hours

o 7-9 hours

o 10-12 hours

o 12-15hours
o Above 15 hours

On an average, how often do you shop online? *

o Everyday

o Twice a week

o Weekly

o Once every two weeks

o Once a month

o Every 2 or 3 months

o Other:

How important is Price of a product to you? *

1 2 3 4 5
Most Important Least important
Why do you shop online? *

o Price

o The way of solving your complaint

o Loyalty for this online shop

o The speed of delivery

o The differences between your expectation and the real products

or services
o Other:

The differences between your expectations and the real products would
influence your satisfaction *
 1 2 3 4 5
Strongly agree Strongly disagree
If an online shop deals with your complaints very well, you will continue
to buy something from it.

o Yes

o No

o Maybe

In case you have never shopped online, what is the reason for the same? *

o I do not know about it

o Risk of credit card transactions

o Internet illiteracy

o Risk of identity theft

o Other:

State your favourite online shopping site with a reason for the same *

Descriptive Statistics
 Out of the responses maximum are by male members.

The maximum people in the survey belong to the age group 15-25.
 The education by maximum responses were by the students completed
their bachelors degree.

The maximum responses were from students, due to the lack of

geographical freedom.
 Income of most of the people is less than 2000 per month.

The max respondents spend around 3-6 hours every day on the internet.
 The maximum respondents shop weekly on the internet.

Price is one of the most important influencers for a purchase decision.

 Reasons to shop online is derived by the prices offered by the agents
online.

A good response from the customer care is a good influencer for the
same, people will shop from a website where there are taken care of in a
desirable way.
 The fear of shopping online can be genuine amongst consumers and so
this pie chart describes the reasons for the same.
 Inferential Statistics
Chi-Square test:

Hypothesis Frame

H0= no relation between profession and online shopping

H1= relation between online shopping and profession.

Since the significant value which is .727 is greater than alpha which is 0.05 so
H1 is accepted. Hence there is a direct relation between profession and online
shopping.

One Way Anova:

VARIOUS COMPARISONS:
 Conclusion & Suggestions

Answering their questions via a video or a written post.

Sending them important updates via email or newsletter.

Posting valuable content with frequency to help keep customers up-to-

date.

Sharing valuable links and content throughout social networks.

Creating an interactive ecommerce design.

Advertising special offers to the most loyal customers first.
51% of shoppers will try one time or just give up if they do not have
support during the shopping experience.
76% will try at least one time post-shopping to get the support they need
before giving up.
In a recent study that was conducted on behalf of UPS, it was found that
81% of customers want an easier way to return products they buy online.
Per a survey 68% of online shoppers desire complimentary return
shipping and a simplified return process to feel confident completing a purchase
THANK-YOU