Research Project On
Research Project On
Research Project On
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
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Enroll no.
15124321009
15124321034
15124321030
15124321011
15124321021
15154421001
SUBMITTED TO:
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
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
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
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
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
1.5
HYPOTHESIS
1.
2.
3.
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
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).
16
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,
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.
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,
19
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
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
22
Target population:
Sampling unit:
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
Scaling technique
3.2.4
Questionnaires design
(4.a)
Question type:
Structure questionnaire
(4.b)
(4.c)
3.2.5
3.2.6
3.2.7
3.2.8
4.
4.1
4.1.1
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.
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
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
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
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
Valid
Frequency 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
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
4.2.1
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
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
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
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
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
35
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
36
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
37
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
38
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
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
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
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
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
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
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
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
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
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
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
Valid
strongly
dissatisfied
Dissatisfied
Neutral
Satisfied
strongly satisfied
Total
Frequency 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
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
4.3
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
2.7100
1.02784
3.1800
.89194
100
2.7700
.95193
100
3.2000
1.06363
100
3.5600
.93550
100
54
4.4
Chi square
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
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
Mean
Std.Error Mean
3.4839
Std.
Deviation
1.06728
3.6053
1.02771
.16672
.13554
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
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
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
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
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) No
65
(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
15.
16.
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
Strongly dissatisfied
Dissatisfied
Neutral
Satisfied
Strongly satisfied
=============================THANK YOU===========================
67