Company Analysis Report 2018 - 20

Title of the Project: Assessing the Buyer Trust and

Satisfaction Factors in the E-Marketplace

Submitted by:
Name of Faculty Guide: Prof Reshma Jadhav Name of the Student: Anant Goyal
Designation: Research Associate Roll No.: PGDM182012438
Program: PGDM 2018-20
Batch: M2

Institute for Technology and Management

Plot No. 25 / 26, Institutional Area,
Sector – 4, Kharghar, Navi Mumbai

1
 CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled “A study to assess Buyer’s trust and satisfactory factor in

Indian economy” is a bonafide work carried out by Mr. Anant Goyal, Roll No.PGDM-2438, a student of

PGDM program 2018 – 2020 of the Institute for Technology & Management, Kharghar, Navi Mumbai

under my guidance and direction.

Signature of Guide : __________________________

Name of Guide : Prof. Reshma Jadhav

Designation : Research Associate

Date:

Place: ITM , Kharghar, Navi Mumbai

2
Chapter 1. INTRODUCTION
1.1 Introduction of the Sector
1.2 Over View of the Sector
1.3 Contribution to GDP
1.4 Domestic Competition & Foreign Competition
1.5 Govt. Policies / Regulation of the sector
1.6 Industry Trends
1.7 Products, Customers & Processes
1.8 Sectoral growth in last 5 years
1.9 Other relevant information
1.10 Introduction to the Company / Product, SWOT Analysis, PESTEL Analysis & BCG Matrix.

Chapter 2 LITERATURE REVIEW

Chapter 3 RESEARCH METHODOLOGY

3.1 Objective of the Study
3.2 Research Design
3.3 Data Collection
3.4 Data Analysis Techniques - Choice of Techniques Brief description of the choice
of the techniques utilized.

Chapter 4 Observation
Chapter 5 Conclusion
Chapter 6 Suggestation

REFERENCES

3
CONTENT

INTRODUCTION PAGE 5 - 18
LITERATURE REVIEW PAGE 19 - 20
METHODOLOGY PAGE 21
DATA ANALYSIS PAGE 22 - 31
OBSERVATION PAGE 32
CONCLUSION PAGE 33
SUGGESTATION PAGE 34 - 35
REFERENCES PAGE 36 – 38
APPENDIX PAGE 39

4
CHAPTER 1-INTRODUCTION

1.1 Introduction of the sector

E-commerce is the activity of buying or selling of products on online services or over

the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic
funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and
automated data collection systems.

Modern electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle although it may also use other technologies such as e-mail. Typical e-
commerce transactions include the purchase of online books (such as Amazon) and music
purchases (music download in the form of digital distribution such as iTunes Store), and to a less
extent, customized/personalized online liquor store inventory services.[1] There are three areas of
e-commerce: online retailing, electric markets, and online auctions. E-commerce is supported
by electronic business.[2]

E-commerce businesses may also employ some or all of the followings:

 Online shopping for retail sales direct to consumers via Web sites and mobile apps,
and conversational commerce via live chat, chatbots[3], and voice assistants[4]
 Providing or participating in online marketplaces, which process third-party business-to-
consumer or consumer-to-consumer sales
 Business-to-business buying and selling;
 Gathering and using demographic data through web contacts and social media
 Business-to-business (B2B) electronic data interchange
 Marketing to prospective and established customers by e-mail or fax (for example,
with newsletters)
 Engaging in prevail for launching new products and services
 Online financial exchanges for currency exchanges or trading purposes

5
1.2 Overview of the sector

Market Size
Propelled by rising smartphone penetration, the launch of 4G networks and increasing consumer
wealth, the Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$
38.5 billion in 2017 Online retail sales in India are expected to grow by 31 per cent to touch US$
32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall.

During 2018, electronics is currently the biggest contributor to online retail sales in India with a
share of 48 per cent, followed closely by apparel at 29 per cent.

Investments/ Developments

Some of the major developments in the Indian e-commerce sector are as follows:

Flipkart, after getting acquired by Walmart for US$ 16 billion, is expected to launch more offline
retail stores in India to promote private labels in segments such as fashion and electronics. In
September 2018, Flipkart acquired Israel based analytics start-up Upstream Commerce that will
help the firm to price and position its products in an efficient way.

Paytm has launched its bank - Paytm Payment Bank. Paytm bank is India's first bank with zero
charges on online transactions, no minimum balance requirement and free virtual debit card

As of June 2018, Google is also planning to enter into the E-commerce space by November 2018.
India is expected to be its first market.

6
E-commerce industry in India witnessed 21 private equity and venture capital deals worth US$ 2.1
billion in 2017 and 40 deals worth US$ 1,129 million in the first half of 2018.

Google and Tata Trust have collaborated for the project ‘Internet Saathi’ to improve internet
penetration among rural women in India

Government initiatives
Since 2014, the Government of India has announced various initiatives namely, Digital India,
Make in India, Start-up India, Skill India and Innovation Fund. The timely and effective
implementation of such programs will likely support the e-commerce growth in the country. Some
of the major initiatives taken by the government to promote the e-commerce sector in India are as
follows:

In order to increase the participation of foreign players in the e-commerce field, the Indian
Government hiked the limit of foreign direct investment (FDI) in the E-commerce marketplace
model for up to 100 per cent (in B2B models). In the Union Budget of 2018-19, government has
allocated Rs 8,000 crore (US$ 1.24 billion) to BharatNet Project, to provide broadband services to
150,000-gram panchayats

7
1.3Contribution to GDP

E-Commerce is a growing sector in India. Just like the growth of IT industry in India through the
1990s, the 2010s will be remembered for the growth in the E-Commerce industry. In its present
state the contribution of E-Commerce to GDP is around 0.2% which is expected to grow 15 times
to around 2.5% by 2030.

The impact is so huge that the present wave of de-monetisation could have not been thought if E-
Commerce did not exist. E-Commerce to a large extent helped absorb its shock as well as gained
the maximum out of it as well. By 2030 the contribution to GDP by E-Commerce is expected to
reach to around 300 Billion Dollars which is around 20 Billion Dollars in its present state.

After the initial wave of B2C E-Commerce, the B2B sector is gaining a lot of traction. 95% of the
business in the B2B sector is still unroganised and E-Commerce will help organise by use of
technology and other support functions.

The impact of E-Commerce industry is still in very nascent stage but are visible. The impact at the
moment can be seen in the following sectors: -

Technology- One of the major drivers of technology will be E-Commerce industry and vice versa.
We are seeing new age technological solutions (AI/Machine Learning) being taken up to solve the
business problems to bring commerce to everyone digitally. This is seen in both B2C and B2B
sector. Investment into technology sector is happening to drive growth in the E-Commerce domain.

Logistics- Logistics industry is both a bottleneck and a driver for e-commerce industry. For the
same we see how last mile and inter-city logistics solutions have come up to digitally connect the
different stakeholders across the country. The Uber model of moving passengers is implemented
in some form or the other in the logistic sector. The growth of E-Commerce will drive innovation
in the logistic sector to make the products available to the end user.

Travel- At the moment 70% of the contribution to E-Commerce comes from the travel sector
which includes the online ticket bookings to other travel arrangements. This has made the market
competitive by bringing all players on the same platform and has also given consumer more
options. Travel industry will be earliest adopters to become completely digitised and that is thanks
to E-Commerce.

Education- One of the industries to have the most profound impact of E-Commerce is the
education. The ability of E-Commerce to provide quality education to everyone is immense. India
will have one of the biggest sets of youth population and hence the scope for education sector to
be the biggest achievers because of E-Commerce is sure.

8
Etail- The flag bearers of the E-commerce wave have been the various E-Retail commerce
platforms. Etail sector is projected to contribute to around 3% of the total Retail sells by 2020 and
is at present around 1%. This wave is seen in both B2C and C2C model and is bound to grow
further. This is not only for goods but also has captured the food sector.

Other Industries- The way of working in the Real Estate sector is already seeing the change
because of the E-Commerce industry. This will change further with all property related
transactions coming online and getting closed online as well. Banking sector is benefiting as well
with reduced operations cost of online transactions. E-Commerce in health care has brought health
related solutions to the urban India and will further penetrate deep into Tier I and Tier II cities.

Support Industries- There are various support industries which have developed because of E-
Commerce. These are digital advertising, analytics, payment gateways etc. These will become
billion dollars sectors as E-Commerce grows exponentially.

Besides the impact to these industries, E-Commerce is helping make the market more competitive,
driving better customer experience and driving accessibility of goods to all. E-Commerce is also
bringing transactions online which makes the system more transparent and to an extent may further
drive technological adoption. This will also help in driving corruption levels down with everything
coming online. The impact is profound and will evolve with time.

The total contribution of the e-commerce sector to the GDP of India is only 0.6% till now so the
contribution of Amazon and Flipkart is less than that.

9
1.4 Domestic competition and Foreign competition

1.Amazon

2.Flipkart

3.Ebay
4.Alibaba

5.Jabong

6.Myntra
7.Shopclues

1.5 Government policies/Regulation of Sector

Also, government to phase out discounts offered by these cloud technology-based websites and
gave them two-year time to do so.

10
1.6 Industry Trends
1. Indian men shop 3 times more than
Indian women.

2. Delhi-NCR consumes 1/3rd of online

purchases followed by a distant Mumbai.

3.Web shoppers prefer larger screens to

their smaller counterparts by 2:1.

4.CASH ON DELIVERY remains the

most preferred payment method by users,
with 70% of the pie.

Categories like clothing and mobile count

60% of the purchasing categories.

60% of online purchasing happen during

business hours.

11
1.7 Products, Customers and Processes
Products
The products offered by Amazon and Flipkart are wide variety products subdivided into various
categories-

1.Electronics

2.Clothing

3.Books

4.Home Décor

5.Edible items

Customers
1) Surfers:

These types of customers may or may not be looking to shop, but browse various websites just to
determine if anything interests them or just to kill time. Some of these customers browse a few
products on online shops that are also available at brick-and-mortar stores, and they may want to
compare prices or brands before actually purchasing them.

These customers are potential buyers and can be converted into loyal customers, through regular
promotions on social networking websites such as Facebook or Twitter. Also, if your website has
a blog, community or forum, they can help Surfers form an opinion about your website, product/
service and customer care. They may start visiting your store regularly to see what’s new, and
eventually find something they would like to purchase.

2) Researchers:

These customers are definitely looking for a specific product or service, but will compare prices,
shipping details, features, return policies and other aspects before actually making a purchase.
These are patient shoppers and are not driven by impulses. If they do not find what they are looking
for now, they are willing to wait it out and try again after a few weeks or even months.

Besides other aspects, researchers also look for a trustworthy seller. If they have not bought from
your website yet, they will try and gather as much information about your store and products
through news and reviews. As a seller, you need to ensure you provide all the necessary details in

12
a consistent, easy to view format. Based on the time spent on the website, these potential customers
can also be converted through means such as live chat and personalized emails.

3) Focused Customers:

These customers are product-driven and log on to your store knowing exactly what they want to
buy. It may be that they are looking to replace a previously owned product, so they do not spend
too much time in research. These goal-oriented customers are looking for a faster interface, easy
to use filters, and easily available products. These customers almost always end up making a
purchase, provided they find what they are looking for.

What you as a seller can do to close the sale is to ensure you have a speedy, yet accurate, search
tool on your website that is able to identify the said product or service in a flash. Once the product
is located, the customer should be able to go through and understand all of its attributes clearly
and identify it as the right product, and then immediately proceed to checkout.

4) Sales / Discounts Driven:

Sales or Discount Driven customers love scouting for a good deal, especially if it’s not sale season.
These customers look for bargains and discount codes on their favourite products and can be
enticed into making a purchase.

A good way to get the attention of these customers is to highlight on how much they would be
saving, by listing the retail price as well as the discount you are offering. These customers also
offer the opportunity of being converted into loyal customers by being provided with special
discounts on becoming members, free shipping with a minimum amount purchase and other such
incentives. Targeted and personalized email marketing and social media marketing can attract such
users to your website. Conversions can also take place through well-trained live chat customer
service professionals, who can judge the intent of the shopper and offer the best quote for them.

5) Impulsive/ One-Time Customers:

These customers can be browsers or even product driven, but will make an impulse purchase if
they find something to their liking on your webstore. They could also be recipients of a gift card
or a special discount coupon that they would like to convert. These shoppers are also looking for
convenience, so they will need to have a clear, concise description of your products, easy, faster
checkouts and no need for registration.

It is hard to determine whether they will be a returning customer, but as a seller, you will need to
woo them through excellent after-sale service, sale updates via newsletters and special occasion
discounts.

13
6) Loyal Customers:

These customers are every online seller’s dream come true, as they account for almost 80% of all
sales, although they account for only 20% of your total customer base. These customers trust your
web store, your service, your shipping policies – basically everything you have to offer. The real
challenge is to retain them, as many web stores often tend to ignore existing customers, in trying
to woo new ones.

To ensure your loyal customers continue to feel appreciated, you must keep a few tactics in place.
Loyalty points and rewards on every purchase, sneak previews of sales, special discounts on
birthdays and anniversaries, and optimal Customer Relationship Management practices are all
tools to keep your customers interested.

If an eCommerce business implements user-friendly web store design, strategic digital marketing,
and focused customer service keeping in mind these six types of customers, they are sure to create
an unbeatable success mantra for their business. Leveraging eCommerce support services could
also be a means to satisfy these diverse users and their myriad requirements.

Processes

14
1.8 Sectoral Growth in Last 5-Years

India has the fastest growing online retail market among top global economies. The country’s
online retail market witnessed compound annual growth rate of 53% for the period 2013 to 2017.

The rapid growth, albeit over a small base, has been driven by aggressive discount driven e-
commerce marketplaces, advances in delivery infrastructure and increased smartphone penetration
and data usage.

These conditions are giving rise to large retail ecosystems. We are seeing the emergence of scale
open retail ecosystem platforms across the Asia Pacific region that offer retailers a compelling
alternative to building and scaling their own capabilities.

15
1.10 Introduction to the company/product, SWOT Analysis, PESTEL
Analysis & BCG matrix

FLIPKART
SWOT
Strengths
1.Internal fleets help in streamlining deliveries.

2.Various initiatives to boost employee engagement.

3.Development of strong in-house brands.

4.Exclusive tie ups with established brands to attract new customers.

Weakness
Lack of an independent board.

Sales not in sync with increase in internet penetration.

Too desperate to overcome Amazon increasing levels of uncertainty.

Opportunities
1.India’s growing logistics sector can provide a good ground to highlight its own fleet.

2.Leverage the nationwide vibe of ‘Make in India’.

Threats
1.Amazon India, the formidable competitor

2.Introduction of the new GST bill.

16
PESTEL

Political
Government of India to boost rural economy and promote Digital India.

GST ‘The Game Changer’.

Economical
1.100% FDI in online retail of goods and services.

2.Removal of distinctions in different types of overseas investment.

Social
1.Startup jobs may suffer a downfall.

2.Empowering youth through employment.

3.Rise in number of online consumers.

Technological
1.Implementation of Data analytics and Cloud.

2.Leveraging AI for optimization.

3.Advent of payment banks.

Legal
1.Infringement of Intellectual Property (IP).

2.Regulation changes for protection of online shoppers.

Environmental

1.Promotion of green environment.

17
BCG Matrix

Cash Cows
There are some product categories that bring in enough revenue for a business entity to regulate
its operations of different business units. These products are labeled as a cash cow and the
manager’s task is to take leverage of these products and utilize their high market share for
gaining high revenues. The industry is mature enough to support the high sales and the high
consumer demand further facilitates in positioning the product as a cash cow. There is limited
chances of gaining any massive growth in future, however the current profitable position of the
business unit communicates a positive outlook for the company.

Stars

The second category of products that is a part of the BCG Matrix is star or rising star, which
holds a high market share. As the name reflects, these products are emerging as the leading
revenue generator for an organization. They do not yield the same financial return as cash cows,
but the future growth of these business units is promising, thus encouraging the management to
continue with the investment in them. Even though these products require high investment, they
are in a growing phase which suggests that these business units are likely to become cash cows
once the industry has reached maturity.

Question Marks

The next quadrant included in BCG Matrix is question marks. These products have the chances
of growing into a profitable business, however the limited market share makes it impossible to
use these business units as prime revenue generator. The industry is still in growth phase, which
indicates that question marks may emerge as a rising star if the business is able to set the right
direction for these products. Moreover, environmental conditions that promote growth of these
items is also a key consideration in determining the future of question marks.

Dogs

The last category in BCG Matrix is used to identify those products that are not generating high
sales and have not been able to establish a notable market share. The industry is slowly
progressing with little scope of further development, further adding to the complexity of the
external business environment. These products do not offer significant financial gain to the
company, instead they consume cash investment. Due to this attribute, dogs are recognized as
cash traps, since they are not expected to help the business through high ROI.

18
Chapter-2 Literature Review

H1: Perceived risk assessment of online shopping.

Assessing the perceived risk in e-marketplace is prerequisite measures to minimize the possibility loss between
sellers and buyers in e-marketplaces [1]. Buyers concerned about a loss of privacy, misuses of personal information,
and quality of product [2]. It can be understood due to the importance of trust a significant impact of customers´
trust [3]. Chang and Wong [4] examined the trust factors in e-procurement and participation of e-marketplace should
consist of: ability (marketplace’s competency, technical expertise, knowledge and capability to perform its role),
friendliness, safety (fairness, integrity, responsibility and commitment), and predictability (sufficient knowledge and
accurate information to make predictions and judgements). Literature studies show that good perceived risk
management has a positive impact on the online trust [5], [6], [7], [8], [9].

H2: Perceived usefulness of online shopping.

Perceived of usefulness is one of the key factors of TAM (Technology Acceptance Model) that
used in the article. TAM was introduced by Davis in 1986 [10] that is used to describe the behavior
of users in the use of information technology. Perceived usefulness is defined as the degree to
which a person believes that using a certain information technology will improve his or her
performance [11]. Perceived usefulness in the article refers to subjective usability in terms of
reaching buyers and sellers, enhancing operational efficiency, and improving the quality of buyer
service to both buyers and sellers [12], [13], [14]. There are increasing trends of Indonesian buyers
to shop online, and these trends become challenges for the sellers to improve their e-application
usefulness.

H3: Perceived ease of use of online shopping.

Perceived ease of use is another key factor in TAM. Perceived ease is defined as the extent to
which a person believes by using an information technology would be free from effort. Smith and
Spiers [15] addressed the roles of perceived usefulness in e-marketplaces with creating behavior
intention to use it, somewhere is quite strong. Along with perceived of usefulness, the perceived
ease of use measures the easy and minimum effort of buyer roles in e-marketplace [16]. Perceived
ease of use is an important issue to address due to large of buyers that are newly exposed to e-
marketplaces.

H4: Indian e-marketplaces reputation.

Reputation takes important roles in shaping the e-marketplace, especially dealing with pricing and
promoting sales [17]. E-marketplace reputation reflects the overall evaluation, image, and the
identification of an e-marketplace [18]. Higher reputation is believed often represents higher
profits [19].

19
H5: E-Seller’s reputation.

The seller’s reputation reflects the confidence in the ability of sellers to provide high-quality
services and the level of the confidence that attached to the information which provided by the
seller before the transaction [20]. However, in under certain circumstances, a high-reputation seller
might probably develop greater intention to cheat [21]. Promoting seller reputation is not an easy
task for Indonesian sellers, due to new seller exposure to online transactions.

H6: Convenience in online shopping.

Convenience refers to the extent to which a buyer feels that a website is easy to navigate [22]. The
effective seller can be measured in the way they established interpersonal relationships with her
buyers, in order to develop tolerance, commitment, preference, productivity, and efficiency [23],
[24].

H7: Perceived satisfaction in Online shooping.

Buyer satisfaction is another important factor in measuring the effectiveness of e-marketplaces.

The determinants of customer satisfaction through online shopping are summarized as:
convenience, web-site design, financial security, trust, assurance, reliability, information,
merchandise variety, perceived ease of use and usefulness, entertainment, speed, response time
and transaction capability [14]. Christer [10] supported this argument and addressed that
institutional trust in an e-marketplace does not automatically influence interpersonal buyer-seller
trust. Buyer satisfaction takes place when products and services meet the expectation of the buyers.
It is very important for any seller in the marketplace enables to provide the website, with products
and services to the certain extent that lead the buyers to be loyal and willing to make repetitive
purchases [25]. Jiradilok et.al. [26] reported that the service quality dimensions are the important
issues that need to be understood by any seller since they have important impacts on creating buyer
satisfaction on online purchases [27].

20
CHAPTER-3 RESEARCH METHODOLOGY

3.1 Objectives
 To understand and estimate the consumer perception and factors affecting their behavior
for choosing e-commerce sites.

 To asses the buyers trust factors while shoping online.

 To know how consumers are evaluating e-commerce sites for their purchases.

3.2 Research Design

Descriptive Research: The objective of descriptive research is to describe the characteristics

of various aspects, such as the consumer trust and attitudes on online shoping and how they
response to it with the help of primary data collected.

3.3 Data Collection

The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have been
posed.

Primary Data: Primary data will be collecting from various people and their opinion and
information for the specific purposes of study which helped to run the analysis. In essence, the
questions asked will be tailored to elicit the data that will help for study. The data will be collected
through questionnaire to understand their experience and preference towards their loyal company.

Secondary Data: To make primary data collection more specific, secondary data will help to
make it more useful. It helps to improve the understanding of the problem. Secondary data was
collected from various sources such as different business websites and published papers.

 Data collection Method -Structured Questionnaire

 Sampling Technique: judgmental sampling
 Sample size: 100
 Tool for data collection: structured questionnaire
 Tool for data analysis: Percentage method

21
 Data Analysis & Interpretation

Q. Age group

S.no Age Percentage given

1 Below 18 12.9
2 18 – 22 59.4
3 23 – 27 23.8
4 Above 27 4

The above table shows that more than 59% of people are in the age group of
18 - 22 years, 24% of the people are in the age group of 23-27 years, 13% of
the people are in the age group of below 18 years, and 4% of the people are
above 27 years. We are having highest respondents who do trust shopping
from flipkart are between 18-22 years and almost all those belongs to young
category.

22
Q. Gender

S.no Name Percentage

1 Female 32
2 Male 68
3 Others 0

In the above fig. shows that there are more than 50% of respondent are male and other remaining
percent are female, which shows that male are more prone to use flipkart for purchasing than
females. Female may use fashion sites like Myntra , Jabong etc.

23
Q. Occupation

S.no Name Percentage

1 Student 60.4
2 Employee 27.7
3 Business 11.9

In the above fig. shows that majority of people who prefer flipkart for purchasing are students
(60 %), which is followed by job profile people (28%), and business own people(12%).

24
Q. Secure and Reliable payment system.

S.no Name Percentage

1 Strongly Dissatisfied 1
2 Dissatisfied 5
3 Neutral 10.9
4 Satisfied 39.6
5 Srongly Satisfied 43.6

The above figure shows that 83% of the total sample are satisfied by the flipkart
payment system. Majority of customer trust its payment system secure & reliable.

25
Q. Knowledge about how the personal information that you fill in, is
processed.(Privacy concerned)

S.no Name Percentage

1 Strongly Dissatisfied 0
2 Dissatisfied 2
3 Neutral 15.8
4 Satisfied 48.5
5 Srongly Satisfied 33.7

The above figure shows that 81% of the total samples are satisfied with the
personal information that is filled is processed. Majority of customer trust flipkart
that the information that they fill in, is in safe and secure hands.

26
Q. Company's - user friendly services

S.no Name Percentage

1 Strongly Dissatisfied 0
2 Dissatisfied 1
3 Neutral 19.8
4 Satisfied 37.6
5 Srongly Satisfied 41.6

The above figure shows that 79% of the total samples are satisfied with the
company user friendly services. Majority of the samples believes that the company
have a good friendly services which helps them in easy surfing and shoping.

27
Q. Brand Image

S.no Name Percentage

1 Strongly Dissatisfied 0
2 Dissatisfied 5
3 Neutral 9.9
4 Satisfied 47.5
5 Srongly Satisfied 37.6

The above figure shows that 85% of the total samples have trust and satisfied with
the brand image of the company, as india largest online retailer. And remaing
percent thinks competitors as a preferred Brand image.

28
Q. Gurantees and Companies policy terms in doing purchase(return, refund
policy)

S.no Name Percentage

1 Strongly Dissatisfied 3
2 Dissatisfied 2
3 Neutral 13.9
4 Satisfied 48.5
5 Srongly Satisfied 32.7

The above figure shows that 81% of the total samples are satisfied with the
company’s terms and guarantee policy. Majority of the people think and trust
flipkart as platform which have a convinent and effective return & refund policies.

29
Q. Concern about the quality of the product

S.no Name Percentage

1 Strongly Dissatisfied 3
2 Dissatisfied 2
3 Neutral 14.9
4 Satisfied 44.6
5 Srongly Satisfied 35.6

The above figure shows that 80% of the total samples are satisfied with the quality
of the product while purchasing from the flipkart. Majority of the customer belives
in company’s product of good quality.

30
Q. Rate Flipkart on the basis of trust

S.no Name Percentage

1 Strongly Dissatisfied 0
2 Dissatisfied 2
3 Neutral 11.9
4 Satisfied 44.6
5 Srongly Satisfied 41.6

The above figure shows that 86% of the total samples are satisfied with using
flipkart as a medium for online shoping. Majority of the samples thinks shoping
from flipkart is helpful and beneficiary to them.

31
 OBSERVATION

 In 2021, there will be 2.1 billion digital buyers worldwide, up from 1.66 billion in 2016.
 Almost 61% of shoppers didn’t finish their purchase because trust logos were missing.
 Amazon is behind 44% of all e-commerce sales.
 Mobile payments will have passed the 50% milestone, becoming mainstream in most markets by
2026.
 In 2019, 14.1% of global retail sales were made online.
 E-commerce influences up to 56% of in-store purchases.
 55% of population begin their product searches on Amazon.
 As many as 18% of local searches lead to a sale within 24 hours.

32
CONCLUSION.

The use of latent variable indices in the present research on consumer trust in online shopping
(with knowledge and experience constituting consumers’ attributes) has led to selecting factors
which impact on the kind of purchase and the amount of expenditures. If satisfaction with the
purchase is closely correlated with customers’ loyalty (their own experience is a reason for
choosing the same vendor again and the customer-vendor relationship stability) and with
knowledge (a possibility of monitoring orders), it is important to pay attention to them when
building up consumers’ trust in e-commerce.

33
SUGGESTION & RECOMMENDATION

1. Make your ecommerce website mobile friendly

 Make your site responsive

 Make sure your site loads quickly
 Optimize your mobile site and improve site search
 Simplify the checkout process

2. Real-time personalization

The more relevant offers you promote, the higher the chances they’ll buy. According to a report,
73% of customers prefer doing business with brands that make use of personal information to

34
create a more relevant experience. Use customers' browsing history, interests, and preferences to
send them personalized marketing messages. Make them relevant and targeted.

3. Adding live chat

Using live chat, customers can ask questions or express concerns before making any buying
decisions, thus increasing your conversion rate and creating a great shopping experience for your
brand. Offering live chat on your site helps you discover common problems experienced by your
customers.

35
REFERANCES

[1] K. Wei, Y. Zha and H. Sun, A comparative study of buyers’ and sellers’ transaction intentions in consumer-to-
consumer e-marketplaces, in Proceedings, PACIS, 2014. [ Links ]

[2] Y. G. Chien, T. Geraldine, T. Martin, M. Sachin, W. Carol, H. Mavis, S. Andy, T. Derek, Y. Jeff, W. Danielle, S.
Mervin, Y. Alfie, T. Rachael, C. Steve, and L. Mark. (2016) E-commerce In Asia. DBS Asian Insights. [Online].
Available: https://www.dbsinsights.com/wp-content/uploads/2016/07/151103_insights_
e_commerce_in_asia_bracing_for_digital_disruption.pdf [ Links ]

[3] A. Safari, Customers' international online trust-insights from focus group interviews, Journal of Theoretical and
Applied Electronic Commerce Research, vol. 7, no 2, pp. 59-72, 2012. [ Links ]

[4] H. H. Cang and K. H. Wong. Adoption of e-procurement and participation of e-marketplace on firm performance:
Trust as a moderator, Information & Management, vol. 47, no. 5-6, pp. 255-324, 2010. [ Links ]

[5] J. Joo, Roles of the buyer’s trust in seller in posted-price model of consumer to consumer e-commerce, Journal of
Theoretical and Applied Electronic Commerce Research, vol. 10, no. 3, pp.30-44, 2015. [ Links ]

[6] M. S. Kim and J. H. Ahn, Comparison of trust sources of an online market-maker in the e-marketplace: Buyer's
and seller's perspectives, Journal of Computer Information Systems, vol. 47, no. 1, pp. 84-94, 2006. [ Links ]

[7] N. Leonard, Attitude influencers in C2C e-commerce: Buying and selling, Journal of Computer Information
Systems, vol. 1, no. 52, pp. 11-7, 2012. [ Links ]

[8] X. Liu, M. He, F. Gao, and P. Xie, An empirical study of online shopping customer satisfaction in China: A holistic
perspective, International Journal of Retail & Distribution Management, vol. 36, no. 11, pp. 919-940, 2008. [ Links ]

[9] A. Safari, Customers' international online trust-insights from focus group interviews, Journal of Theoretical and
Applied Electronic Commerce Research, vol. 7, no 2, pp. 59-72, 2012. [ Links ]

[10] K. Wei, Y. Zha and H. Sun, Exploring the impact of trust and relational embeddedness in e-marketplaces: An
empirical study in Taiwan, Industrial Marketing Management, vol. 41 no. 3, pp: 460-468, 2012. [ Links ]

[11] F. D. Davis, User acceptance of information technology: system characteristics, user perceptions and behavioral
impacts, International journal of man-machine studies, vol 38, no. 1, pp. 475-487, 1993. [ Links ]

[12] T. J. Smith and R. Spiers, Perceptions of e-commerce Web sites across two generations, Informing Science:
The International Journal of an Emerging Transdiscipline, vol. 12, pp. 159-180, 2009. [ Links ]

[13] J. Joo, Roles of the buyer’s trust in seller in posted-price model of consumer to consumer e-commerce, Journal
of Theoretical and Applied Electronic Commerce Research, vol. 10, no. 3, pp.30-44, 2015. [ Links ]

[14] J G. Jolivet, B. Jullien and F. P. Vinay, Reputation and prices on the e-market: Evidence from a major french
platform, International Journal of Industrial Organization. vol. 31, no. 45, pp. 59-75, 2016. [ Links ]

[15] Y. H. Chen, J. J. Wu, I. R. R. Lu, and S.H. Chien, Exploring impact of e-marketplace reputation and reference
group on trust of e-marketplace, in Proceedings PACIS, 2013. [ Links ]

36
[16] P. Fouliras, A novel reputation-based model for e-commerce, International journal Operational research, vol. 1,
no. 13, pp. 113-138, 2013. [ Links ]

[17] K. Choon Ling, D. Bin Daud, T. Hoi Piew, K. H. Keoy, and P. Hassan, Perceived risk, perceived technology,
online trust for the online purchase intention in Malaysia, International Journal of Business and Management., vol. 6,
no. 6, pp. 167-182, 2011. [ Links ]

[18] H. Jiao, J. Liu, J. Li, and C. Liu, A paradox for trust and reputation in the e-commerce world, in Proceedings of
the Thirty-Sixth Australasian Computer Science Conference, Australia, 2013, pp. 69-78. [ Links ]

[19] Q. Fan, J. Yul Lee and J. I. Kim, The impact of web site quality on flow-related online shopping behaviors in
C2C e-marketplaces: A cross-national study, Journal of Service Theory and Practice, vol. 23, no. 5, pp. 364-387, 2013.
[ Links ]

[20] W. W. Wan, C. L. Luk, K. S. Fam, P. Wu, and C. W. Chow, Interpersonal relationship, service quality, seller
expertise: How important are they to adolescent consumers?. Psychology & Marketing, vol. 29, no. 5, pp. 365-377,
2012. [ Links ]

[21] J. A. Wagner, N. M. Klein and J. E. Keith, Buyer-seller relationships and selling effectiveness: The moderating
influence of buyer expertise and product competitive position, Journal of Business Research, vol. 56, no. 4, pp. 295-
302, 2003. [ Links ]

[22] X. Liu, M. He, F. Gao, and P. Xie, An empirical study of online shopping customer satisfaction in China: A
holistic perspective, International Journal of Retail & Distribution Management, vol. 36, no. 11, pp. 919-940, 2008.
[ Links ]

[23] K. Christer, The role of trust in B2B electronic commerce: Evidence from two e-marketplaces, Ph.D. dissertation,
Division of Industrial Marketing and e-Commerce, Luleå Tekniska Universitet, Suecia, 2005. [ Links ]

[24] T. Jiradilok, S. Malisuwan, N. Madan, and J. Sivaraks, The impact of customer satisfaction on online purchasing:
A case study analysis in Thailand, Journal of Economics, Business and Management, vol. 2, no. 1, pp. 5-11, 2014.
[ Links ]

[25] S. Rahman and A. Z. Zainal, Service quality and students’ satisfaction towards purchasing online educational
resources, Journal of Marketing Management, vol. 2, no. 2, pp. 57-64, 2014. [ Links ]

[26] W. L. Shiau and M. M. Luo, Factors affecting online group buying intention and satisfaction: A social exchange
theory perspective, Computers in Human Behavior, vol. 28, no. 6, pp. 2431-2444, 2012. [ Links ]

[27] M. Awais and S. Tanzila, Advanced SWOT analysis of e-commerces, International Journal of Computer Science
Issues, vol. 9, no 2, pp. 569-574, 2012. [ Links ]

[28] R. Chinomona and M. Sandada, Customer satisfaction, trust and loyalty as predictors of customer intention to re-
purchase South African retailing industry, Mediterranean Journal of Social Sciences, vol. 4, no. 14, pp. 437-446, 2013
[ Links ]

[29] F. D. Davis, User acceptance of information technology: system characteristics, user perceptions and behavioral
impacts, International journal of man-machine studies, vol 38, no. 1, pp. 475-487, 1993. [ Links ]

[29] M. E. Greiner and H. Wang, Building consumer-to-consumer trust in e-finance marketplaces: An empirical
analysis, International Journal of Electronic Commerce, vol. 15, no. 2, pp. 105-136, 2010. [ Links ]

37
[30] J. F. Hair, W. C. Black, B. J.Babin, R. E. Anderson, and R. L. Tatham, Multivariate Data Analysis 6th Edition.
New Yersey: Pearson Prentice Hall. 2006. [ Links ]

[31] B. Hong and H. Cho, The impact of consumer trust on attitudinal loyalty and purchase intentions in B2C e-
marketplaces: Intermediary trust vs. seller trust, International Journal of Information Management, vol. 31, no. 5, pp.
469-479, 2011. [ Links ]

[32] McKinsey. (2015) Global media report 2015. Global Industry Overview, 2015.
[Online].Available:https://www.mckinsey.com/~/media/McKinsey/dotcom/client_service/Media%20and%20Enterta
inment/PDFs/McKinsey%20Global%20Report%202015_UK_October_2015.ashx[ Links ]

[33] R. P. Nirmala and I. J. Dewi, The effects of shopping orientations, consumer innovativeness, purchase
experience, and gender on intention to shop for fashion products online, Gadjah Mada International Journal of
Business, vol. 13, no. 1, pp. 65-83, 2011. [ Links ]

[34] T. J. Smith and R. Spiers, Perceptions of e-commerce Web sites across two generations, Informing Science: The
International Journal of an Emerging Transdiscipline, vol. 12, pp. 159-180, 2009. [ Links ]

[35] M. Suresh and R. Shashikala, Identifying factors of consumer perceived risk towards online shopping in India,
in Proceedings 3rd International Conference on Information and Financial Engineering IPEDR 2011, IACSIT Press,
Singapore, 2011, pp. 336-341. [ Links ]

[36] C. C. Tu, K. Fang and C. Y. Lin, Perceived ease of use, trust, and satisfaction as determinants of loyalty in e-
auction marketplace, Journal of Computer, vol. 7, no. 3, pp. 645-652, 2012. [ Links ]

38
 Appendix

Name:

Age:

Location (State):

Gender:

Q. If you have purchased from Flipkart, how important are these factors for you to
trust the brand ?

A. Secure and Reliable payment system.

Very important * * * * * Least important

B. Knowledge about how the personal information that you fill in, is
processed.(Privacy concerned)

Very important * * * * * Least important

C. Gurantees and Companies policy terms in doing purchase(return, refund policy)

Very important * * * * * Least important

D. Company's - user friendly services

Very important * * * * * Least important

E. Convenient to use application

Very important * * * * * Least important

F. Concern about the quality of the product

Very important * * * * * Least important

G. Brand Image

Very important * * * * * Least important

39