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"Literature review on Customer perception about Online shopping with

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Juni Khyat ISSN: 2278-4632
(UGC Care Group I Listed Journal) Vol-10 Issue-7 No. 2 July 2020

“Literature review on Customer perception about Online shopping with reference to

Amazon in India.”

Authors:

Dr Milind A Marathe,
Professor,
Sinhgad Institute of Management and Computer Application, Narhe Pune
Email: - milindmarathe22@gmail.com
Mobile: - 9822885236

Mr. Gaurav Gawade

Research Scholar
Sinhgad Institute of Management and Computer Application, Narhe Pune
Email: - prof.gaurav.gawade@gmail.com
Mobile: - 8087685998

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Juni Khyat ISSN: 2278-4632
(UGC Care Group I Listed Journal) Vol-10 Issue-7 No. 2 July 2020
“Literature review on Customer perception about Online shopping with reference to
Amazon in India.”

Dr Milind A Marathe, Mr Gaurav Gawade

Professor Research Scholar
Sinhgad Institute of Management and Computer Application, Narhe, Pune.
_________________________________________________________________________
Abstract:
The number of internet users is increasing every day and this increased growth has created
opportunities for global and regional e-commerce. This number is expected to reach 445
million users in 2020.
Amazon (Amazon.com) is the world’s largest online retailer. The company was originally a
book seller but has expanded to sell a good sort of commodity and digital media also as its
own electronic devices; Jeff Bezos incorporated the corporate as Cadabra in 1994 but
changed the name to Amazon for the web site launch in 1995. Amazon is headquartered in
Seattle, Washington. Amazon operates in India as Amazon India subsidiary.

The purpose of this study is to understand the consumer’s perception towards online
shopping. For this study detailed literature survey was conducted. The existing literature
available on e-commerce, online shopping and various studies on consumer perception were
referred. Consumer perception regarding online shopping is directly dependent on a number
of factors, price of the products, and security of the products. Guarantees and Warranties,
followed by delivery time and reputation of the company, privacy of the information and
convenience.
Amazon offers best prices, good products, and completely hassle-free shopping experience
for its customers. Barriers for online shopping are inability to touch and try product, fear of
faulty products, inability to bargain, risk of breach of financial details
________________________________________________________________________
_____________________________________

Keywords: E-Commerce, Amazon, Online Platform, Consumers Perception, Online

Shopping.

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Introduction
The number of internet users is increasing every day and the number is expected to reach 445
million users in 2020. This increased growth has created opportunities for global and regional
e-commerce.
Amazon is the world’s largest online retailer. The company was originally a book seller but
has expanded to sell a good sort of commodity and digital media also as its own electronic
devices; Jeff Bezos incorporated the corporate as Cadabra in 1994 but changed the name to
Amazon for the web site launch in 1995. Amazon is headquartered in Seattle, Washington.
Amazon operates in India as Amazon India subsidiary.
The purpose of this study is to understand the consumer’s perception towards online
shopping towards Amazon. For this study detailed literature survey was conducted. The
existing literature available on e-commerce, online shopping, and various studies on
consumer perception on Amazon were referred

Research Question:
“Which factors motivate a buyer to purchase as well as restrain to purchase Online from
Amazon”?

Objectives:
Objective 1: What are the factors influencing online shopping in India?
Objective 2: Understand the factors that influence online shopping in case of Amazon
Objective 3: Study the problems faced by customers while shopping Online with Amazon

Literature review:

As per the report by India brand Equity Foundation, December 2019. India’s e-commerce
market is poised to grow four folds to US$ 150 billion by 2022 coupled by rising incomes
and surge in internet users

Vellido et al. (2000), pointed out in his research, that nine factors associated with user’s
perception was demonstrated to be the main discriminator between people buying online and
other people not buying online. Other discriminating factors like convenience of, the
shopping process, affordability of merchandise, customer service and ease of use of the
shopping site.

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Juni Khyat ISSN: 2278-4632
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Goldman Sachs (2001), found in the study price, quality of service and knowledge, speed and
reliability of delivery, simple on-line ordering, and trust towards vendors are important
factors for consumers.

Dhevika VPT, Latasri OTV, Karmugil S(2014) indicated that factors Affecting Online
Customers Shopping are security, followed by reliable shopping and design and features
internet site the least important factor, the negotiation of purchases isn't a big combination of
security and style features / website response and general online shopping behaviour

Nikita Arora (2018), Customer perception and customer behaviour helps us to understand the
challenges faced by the marketers in comprehending the consumer mind. What exactly goes
in the mind of the customer and what are the processes in the mind of consumer that
influences him or her in buying different products or services.

Kanwan Gurleen (2012) in the study on online purchase found out that the reasons are price
consciousness, variety, ease of payment, no rush. Sensitivity to price, convenience, variety,
easy payment solutions and the challenges of online shopping while the challenges in online
purchase are trustworthiness of few websites.

K.S. Silpa, PU Rajasree and Dr. P. Balsubramanyam (2016) In the study on perception
towards online shopping indicated that cash on delivery is preferred option for payment and
online shopping will be in more demand. According to the authors, the fear for online
shopping is about the quality of goods, fear of sharing credit card details.

Dholkiya and U u Sitalo (2002) conducted a study to find relationship between age and
internet shopping. In the study, they observed that younger consumers search more products
online, and online shopping is more convenient to young consumers.

K. Rammohan Rao and Chandrasekhar Patro (2016) In a study of factors influencing

perception toward online shopping found out that convenience, website design, delivery,
price, advantage, reliability are few important factors.

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Juni Khyat ISSN: 2278-4632
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Benedict et al (2001) study revealed that perceptions toward online shopping and intention to
buy online aren't only suffering from simple use, usefulness, and delight , but also by
parameters namely consumer characteristics, situational factors, product features, past online
shopping experiences, and trust in online shopping.

Neha Sharma (2018), conducted a study on Consumers’ perception on online shopping, as

per the study, Marketers strive to influence consumer attitudes, and understanding the
prevailing attitude is the first step to changing it if needed. Thus, consumer attitude is taken
into very vital importance so on know the changes required within the products regarding the
consumers.

As per the article by Retail Drive ,Author Rimma Kats has quoted that Amazon has done well
in terms of the satisfaction index ,consistent with ForeSee’s annual Holiday E-Retailer
Satisfaction Index, within the year 2012 was Amazon’s biggest season ever with quite 26.5
million items ordered worldwide,”

As per the conceptual model by NebojšaVasić Milorad Kilibarda Tanja Kaurin (2019) the
various variables are as below

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Juni Khyat ISSN: 2278-4632
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(Reference: -NebojšaVasić Milorad Kilibarda Tanja Kaurin, Journal of Theoretical and

Applied Electronic Commerce Research VOL 14 / ISSUE 2 / MAY 2019 / 70-89)

Analysis
Table highlights the contribution by various Researchers on the subject area

SNO RESERACHERS YEAR SUBJECT REGION FINDINGS

1 Dr. C. E. Franco 2018 A study based Tirunelveli 1) Significant

U.A. Shika on customer District number. of
Nancy satisfaction respondents are in
towards Amazon age group of 20 to
online purchase 40
in Tirunelveli 2) 5% respondents

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district are purchasing
goods from
Amazon for less
than one yr.
3) Respondents
have preferred
cash on delivery
option
4) Problem faced
is delay in
delivery product,
damage, and
cheap quality.
2 Lakshmanan 2016 Customer Udamapel 1.Frequency of
satisfaction Taluka, purchase
towards online Tamilnadu occasionally
shopping 2.Purchasing
amazon.com goods for 1 yr.,
Items purchased 3. Factors
books garments influencing the
Net banking, cad purchase are: -
age group26-35 quality variety, no
yrs. male need to travel, no
hidden cost
3 Dr. c. Vijay 2019 Customer Chennai Frequency is
Vishnu Kumar satisfaction South Monthly/
R. Gopinath towards amazon occasionally
Prefer- COD,
Debit card
Fast delivery easy
payment, quality
time saving
Speed delivery

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Juni Khyat ISSN: 2278-4632
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4 Rudresha C.E. 2018 Consumer Karnataka
H.R. Manjunatha perception (Shivmogga) Items – mobile,
Chandra towards online tickets footwear,
Shekarappa shopping books
Factors -
saves time, save
money, more
efficient, home
delivery quick
shopping
Factors – offers,
quality, discount
simple payment,
guarantee,
unavailability in
local region
COD

5 Khushboo 2014 Customer Indore Positive about

Makwana, perception online shopping
Khushboo towards online Convenient
Dattani, Himashu shopping
Badlani
6 Dr. Yogesh D. 2017 Factors and Pune Website design
Mahajan perception of Response
Indian Data security
millennials for Service provided
online Retailers by retailer
7 Dr. R. Shanthi 2015 Consumers Books,
Dr.Desti perception on electronics, cloths
Kannaiah online shopping Factors-
delivery time,
reputation, privacy

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of information,
security, prices,
guarantees
warrantees
Price, security,
and guarantee
warrantee

Table1: -Summary Analysis of Research studies by multiple authors on the subject area

SWOT Analysis of Amazon

1. Strength: -
Strong leadership.
Good customer retention strategy.
Use of IT services as a strong differentiator.
Good economies of scale.
Strong image as a global player
Logistics is the main strength.

Weakness: -
Lack of right diversification strategy.
Free shipping is negating the cost advantage.
Not able to read competition correctly.
Operating with narrow Margins.

Opportunities
Online payment offers better opportunities for business growth.
Opportunity of launching own brand.
May have global expansion strategy.

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Juni Khyat ISSN: 2278-4632
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Threats
Security concerns in online shopping.
Aggressive pricing may not be always a win-win proposition.
Has strong competition from Flipkart, Snapdeal and other brands in India.

Findings
As per the study large number of Amazon customers are happy with customer service offered
and packaging offered, similarly certain percent of respondent are purchasing the goods from
Amazon for less than one year.
The commonly purchased items from Amazon are dresses, mobiles, tickets, footwear, books
It observed that population between the age group of 15-30 are main buyers in terms of
buying products online, younger consumers search more products online, and online
shopping is more convenient to young consumers.
Price of the products has the most influencing factor on the purchase of products online. The
second most influencing factor is the security of the products. The third most influencing
factor on online purchase is Guarantees and Warranties, followed by delivery time followed
by reputation of the company, privacy of the information and nice description of goods.
Major draw card of online shopping is the ease and discounts available for different kind of
products
Amazon created an impact, by offering quality product with good packaging so as that the
merchandise reaches safely to customer without damages.

Problems faced in online shopping:

1. Damage to the product,

2. Barriers are inability to touch and try product, fear of faulty products, inability to bargain,
risk of breach of financial details

3. The trustworthiness of online shopping.

4. The fears expressed by some of the consumers about quality of goods, fear of sharing
credit card information.

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5. Some of the major problem faced by consumers in online shopping is delay in delivery

Suggestions
Company should assure their consumers by offering personal information privacy protection
policy and guarantee for transaction security by improving their technological systems.

Amazon offers best prices, good products, and completely hassle-free shopping experience
for its customers. Company should ensure high quality standards and focus on speedy
delivery

Amazon should focus on delivery times and delivery charges and product return policies. It
should be easier, quicker, and reliable, so that consumers can enjoy the online shopping
experience.
For the customers migrating from traditional to online shopping mode, Brand should ensure
that the entire shopping experience should be a memorable one.

With increased competition from other players like Flipkart; Snapdeal, company should work
on customer satisfaction and building customer loyalty. Ccompany should focus on better and
safe packaging for the products.
The online stores can increase their reputation by effective marketing strategies like physical
demonstration videos for goods, on time delivery together stop buying consumers.

Conclusion
The technological innovation along with digital revolution, has forced the enterprises and
companies globally to restructure their business strategies to grab the opportunities.

Looking at the today’s scenario of hyper-competitive economy, the reaction time of

consumers has changed to microseconds; the biggest challenge is handling stability and
security. Due to internet, the consumers’ fundamentals have changed with respect to
expectations in information regarding product and service along with price and speed.
Therefore, vendors now have a new approach for creating value for customers and also
building relationships with them.

The basic motive of this paper is that it should contribute to the better understanding of the
areas that affect consumers’ perception, which in turn will guide consumers to experience

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hassle free online purchasing. Secondly, this paper should also provide guidelines to online
stores like Amazon for betterment on their operations and their marketing strategies.

SCOPE FOR FUTURE STUDIES:

Due to impact of corona virus and the effect of lockdown, more and more customers are
migrating to online mode. Since online shopping site have started offering contactless
delivery there is a better opportunity for brand like -commerce, powered by technology, has
played a key role and has been the lifeblood for cities under shutdown to fight Covid-19,
There is a scope for conducting a study to find out he impact of covid19 on brands like
Amazon. Further Amazon has launched a service named Amazon Prime in India the response
is very good. A further study can be conducted to find out the perception about Amazon
Prime service in particular.

References

1. Amazon Ranks No 1 in customer satisfaction from

https://www.retaildive.com/ex/mobilecommercedaily/amazon-ranks-no-1-in-customer-
satisfaction.
2. Gurleen K. Consumers Perception Towards Online Shopping. International journal of
management & Information Technology.2012; 1: 115-122.
3. Dhevika VPT, Latasri OTV, Karmugil S. Factors Affecting Online Shopping of
Customers. Research journal’s Journal of Marketing.2014; 2(4): 220-235.
4. https://www.ibef.org/download/E-Commerce-December-2019.pdf accessed on June 20,
2020.
5. Nikita Arora, Dr Ajay Singh, Dr Parul Agarwal (2019), a Comparative Analysis of
Customer Satisfaction between Amazon and Flipkart: A Study Conducted in NCR Region of
India,
6. International Journal of Recent Engineering Research and Development (IJRERD),
Volume 04 – Issue 07 || July 2019 || PP. 06-12
7. Neha Sharma (2018), Consumers’ perception on online shopping, International Journal of
Academic Research and Development, Volume 3; Issue 1; January 2018; Page No. 833-837,
ISSN: 2455-4197

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 Juni Khyat ISSN: 2278-4632
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8. Dr. R Shanthi 1. Dr. Desti Kannaiah 2. Consumers’ Perception on Online Shopping,
Journal of selling and marketing research , Vol.13, 2015
9. Gurinder S, Shergill, Zhaobin Chen. Web based Shopping: Consumers’ Attitudes towards
online shopping in New Zealand, Journal of Electronic Commerce Research, 2005; 6(2):80.
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india/#:~:text=The number of smartphone users, 2.3 billion users in 2017.&text=The number
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