PRESENTATION ON PROJECT REPORT

An Empirical Study of Customer Expectation and Perception towards Online Shopping with Reference of Flipkart.comPresented By:Jay Prajapati MBA(MM)CMS-Ahmedabad. Guided By:Dr Rachita Jayswal CMS-Ahmedabad

ContentIntroduction of online shoppingIntroduction of Flipkart.comObjectivesResearch MethodologyData Analysis & Interpretation Findings & DiscussionRecommendations

Introduction of Online ShoppingOnline shopping has become a popular shopping method ever since the internet has declared a takeoverOnline shoppingis a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser.There are many advantages of online shopping; this is the reason why online stores are a booming business today.Consumers can buy a huge variety of items from online stores, and just about anything can be purchased from companies that provide their products online.Books, clothing, household appliances, toys, hardware, software, and health insurance are just some of the hundreds of products consumers can buy from an online store.

History of online shopping English entrepreneurMicheal Aldrichinvented online shopping in 1979 . The firstWorld Wide Webserver and browser, created byTim Berners-Lee in 1990, opened for commercial use in 1991.The first secure retail transaction over the Web was either byNetMarket orInternet Shopping Networkin 1994.Amazon.comlaunched its online shopping site in 1995 and eBay was also introduced in 1995.Alibabas sitesTaobaoandTmallwere launched in 2003 and 2008, respectively.

History of online shopping in IndiaIndiahad an internet user base of about 354 million as of June 2015and is expected to cross 500 million in 2016.Despite being the second-largest user base in world, only behind china.In India,cash on deliveryis the most preferred payment method, accumulating 75% of the e-retail activities.Demand for international consumer products is growing much faster than in-country supply from authorized distributors and e-commerce offerings

1991: Introduction of E-Commerce.2002: IRCTC teaches India to Book ticket online.2003: Introduction of Low Cost Airline with AirDeccan.2007: The Deep Discounted model of Flipkart.com

Players in India FlipkartAmazonSnapdeal

Others: PayTMJabongEbayShopcluesMakeMyTripAskmeBazaarGoibibo

FlipkartFlipkartis ane-commercecompany founded in 2007 bySachin BansalandBinny Bansal.The company is registered in Singapore, but has its headquarters inBangalore,Karnataka, India.Flipkart has launched its own product range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.Flipkart's last fundraising round in May 2015 had pegged its valuation at $15 billion.In May 2016,Morgan Stanleylowers Flipkart's valuation at $9.39 billion

Flipkart now employs more than 33,000 people.Flipkart allows payment methods such ascash on delivery,creditordebitcard transactions,net banking, e-gift voucher and card swipe on delivery.

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ObjectivesTo analyze how Gender effects on online shopping in Flipkart.To analyze how Age effects on online shopping in Flipkart.To analyze how much difference there between Expected and Perceived Variables.To find what the major factors are affects on online shopping experience Flipkart.To know the impact of factors towards online shopping experience of Flipkart.

Research MethodologyResearch Design : Conclusive Sampling design:

(a) Target population definition Target population:All customers of Flipkart.com Sampling unit:A customer of Flipkart.com Sampling element:A customer of Flipkart.com Extent: Ahmedabad, Gujarat

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(b) Sampling method: Non-probability sampling: Convenience sampling (c) Sample size determination: 220 Questionnaires

Scale: Likert Scale Questionnaires design:

Question type: Structure questionnaire

Structured question types: Scaling, Multiple choice questions Pre-testing of questionnaires: It will be done with 10 respondents

Data analysis software: SPSSData analysis techniques:Frequency distribution, Chi-square, Paired Samples T-test, Exploratory Factor analysis, Multiple Regression Test Data collection tools: QuestionnaireData collection method: Survey, personal

Data Analysis & InterpretationFrequency

Crosstabs Analysis

H1: Male Consumers spend more time in surfing the web than female consumers.

Time spend Gender Crosstabulation GenderTotalMaleFemaleTime spend0-5 hours4229716-10 hours45287311-15 hours34154916-20 hours6612More than 20 hours13215Total14080220

Chi-square Test

*p=0.10 ConclusionAs the significance value is less than 0.10, we can say that alternate hyposethsis is accepted i.e. Male Consumers spend more time in surfing the web than female consumers. After doing crosstabs analysis with Chi Square method we concluded that 13 out of 15 are males whos using internet more than 20 hours and only 2 female consumers are using more than 20 hours.There are same numbers of Male and Female consumers that spend 16-20 hours. But Male consumers which uses 6-15 hours are more in numbers than female consumers so its proved that male consumers uses more internet than females.Value Sig. (2-sided)Pearson Chi-Square6.374a.095*Likelihood Ratio8.321.040Linear-by-Linear Association.221.638

How Often Use Flipkart Age Crosstabulation AgeTotal15-2526-3536-45above 45How Often Use FlipkartDaily14148137Weekly41332412110Monthly281912766Yearly51017Total88674421220

H2: Young age Consumers use Flipkart regularly than Old age Consumers

Chi-Square Table

*p=0.05

ConclusionAs the significance value is more than 0.05; so we null hypothesis is accepted. Here we analyzed Age with How often use of flipkart with crosstabulation method and we have concluded that Consumers with age 15-35 use Daily or Weekly online shopping and in 36 or above age consumers use less time.Value Sig. (2-sided)Pearson Chi-Square7.416.594*Likelihood Ratio9.279.412Linear-by-Linear Association.108.743

Paired Samples T-Test

Reliability Statistics of constructs

VariableNumber of VariablesCronbachs AlphaExpectation170.876Perception170.863Pair of Expectation&Perception340.830

Hypothesis-There is Significant difference between perception of Factor and expectation of Factor at online shopping in Flipkart.Here total number of factors is 17.

Paired samples StatisticsPaired samples CorrelationsPaired samples TestMeanStd. DeviationCorrelationsSig.MeanStd. DeviationtdfSig. (2-tailed)Pair 1Convenience3.74092.8818.917191.14463-.042.532.859091.496778.513219.000Pair 2Easy to use3.91823.3136.882421.01891.151.026.604551.243427.211219.000Pair 3Discount3.85003.1727.911741.03685.057.404.677271.341457.489219.000Pair 4Save time3.96803.5205.915652.97440.067.325.447493.053162.169218.031Pair 5More variety3.82273.3273.974761.04343.170.012.495451.301555.646219.000Pair 6Detailed information3.80453.3591.856341.09092.173.010.445451.264815.224219.000

Pair 7Delivery system3.80913.3864.875811.11887.024.719.422731.403984.466219.000Pair 8Return policy3.65453.2500.945421.06254-.068.314.404551.469624.083219.000Pair 9Credit-card Detail3.48642.91821.044581.07382.129.056.568181.397946.029219.000Pair 10Security of Payment3.75803.2283.924121.09750.050.460.529681.398825.604218.000Pair 11Better quality3.66363.2136.878741.09750.047.489.450001.365684.887219.000Pair 12Service3.88183.4273.841092.19987.032.633.454552.329622.894219.004Pair 13Merchandise available3.67273.1636.91770.93660-.028.683.509091.329305.680219.000

Pair 14Error free3.68183.1364.940531.09359.144.032.545451.335416.058219.000Pair 15Customer complaints3.73643.1773.882891.13090.102.132.559091.361966.089219.000Pair 16Product knowledge3.81823.2591.877751.01638.145.031.559091.242756.673219.000Pair 17Payment3.97733.3909.857111.06925.169.012.586361.252146.946219.000

ConclusionPerceived and Expected Factors were weakly and positively correlated (r= 0.077765,p< 0.001)There is a significant average difference between Perceived and Expected Factor(1-17)

Pair 14Error free3.68183.1364.940531.09359.144.032.545451.335416.058219.000Pair 15Customer complaints3.73643.1773.882891.13090.102.132.559091.361966.089219.000Pair 16Product knowledge3.81823.2591.877751.01638.145.031.559091.242756.673219.000Pair 17Payment3.97733.3909.857111.06925.169.012.586361.252146.946219.000

Exploratory Factor analysis

The KMO Measure of Sampling Adequacy was 0.934 indicating analysis results are meritoriousIn total, there were seventy (17) in the data. Items with higher cross loadings (more than 0.20) and those with lower than 0.5 Measures of Sampling Adequacy (MSA) were checked. Eventually Five statements were trimmed. Finally, remaining twelve statements were used to compute factors.EFA was repeated again excluding the trimmed measurement. Varimax rotation method was used with factors extraction with Eigen value over 1.It resulted into extraction of two factors

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity.934Approx. Chi-Square1145.780Df66Sig..000

Composition of each factor identified in factor analysis

FactorItemsExtractionConvenient.645Easy to Use.619More Variety.524Factor 1Detailed Product Information.582Expected OnlineDelivery System.532Shopping EnvironmentBetter Quality product.559Error free.506Customer Complains.634Product Knowledge.501Reliable Payment.542Factor 2Credit Card System.586Expected TrustServiced as Promised.615

In total, there were seventy (17) in the data. Items with higher cross loadings (more than 0.20) and those with lower than 0.5 Measures of Sampling Adequacy (MSA) were checkedEventually Eight statements were trimmed. Finally, remaining nine statements were used to compute factors.EFA was repeated again excluding the trimmed measurement.Varimax rotation method was used with factors extraction with Eigen value over 1.It resulted into extraction of three factors Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity.778Approx. Chi-Square398.890Df36Sig..000

Composition of each factor identified in factor analysis

FactorsItemsExtractionReturn Policy.658Factor 1Security of Payment.508Perceived ReputationProduct Knowledge.561Reliable Payment.655Factor 2Convenient.618Perceived Ease of useEasy to Use.622Discount.567Factor 3Credit Card System.604Perceived RiskBetter Quality product.573

Regression

Hypothesis-Customers expected online shopping environment, expected trust, perceived reputation, perceived ease of use, perceived risk has significant influence over his/her overall online shopping experience on Flipkart

FactorMeanStd. DeviationOnline shopping Experience3.8636.85983Exp_OnlineShop_Env3.2445.80734Exp_Trust3.17271.23206Per_Reputation3.8023.64691Per_Ease_of_use3.8295.76855Per_Risk3.6667.69498

VariablesOnline Shopping ExperienceBaBbTSig.VIFExp_OnlineShop_Env-.131-.123-1.949.0531.254Exp_Trust.010.015.234.8151.213Per_Reputation.353.2664.047.0001.347Per_Ease_of_use.260.2333.655.0001.268Per_Risk.249.2013.086.0021.332VariablesValuesR.562R Square.316Adjusted R Square.300Std.Error.71945F19.760Sig, Level.000

Findings & Discussion

FINDINGS

In this study we have found that male consumers are using more online shopping than female consumers. It is may be because in India Men use more internet than Women but mobile users are almost same in numbers. Old age consumers dont shop online much according to this study compares to Young age consumers. Internet shopping is more popular since 2007, so new generation is likely to use internet more and do shop online but for old age people its very difficult to shop online shopping because its new for them.There is minor significance difference between consumers perceived and expected service which is positive. Four factors: Expected Trust, Perceived Reputation, Perceived Ease of Use , Perceived risk has positive impact on overall online shopping experience while Expected Online shopping Environment has negative impact on it. Expected online shopping environment, expected trust, perceived reputation, perceived ease of use and perceived risk factors have 31%. It is less than half of the total influence on overall online shopping experience. These factors are likely to find overall experience

Findings & Discussion

DISCUSSIONThis study tried to examine the impact of Expected and Perceived Factors on overall shopping in Flipkart. In addition, It also attempted to find Expected and Perceived Factors attitude towards customers overall experience in shopping in Flipkart.Here after result we have found that four out of five factors have positive influence on overall online shopping in Flipkart.Highest Number of positive influence is by Perceived Reputation on online shopping in Flipkart which is 0.266.

Lowest Number of positive influence is by Expected Trust on online shopping in Flipkart which is 0.15.Only one Factors influence negatively towards online shopping in Flipkart which is Expected online shopping Environment valued -0.19.Perceived Ease of use and Perceived Risk are factors which influence positively towards online shopping in Flipkart valued 2.666 and 2.333 accordingly

RecommendationFlipkart should provide more awareness to female consumers like work on advertisement; arrange some public awareness programs, etc.Make design of site very easy and simple so that they can use them without difficulty.Flipkart can do some work on conveniences, ease of use, reliable payment method and discount that consumer expecting high level of services and perceived low level of services.There are other factors that not included in this study can be studied by some other methods which effects very much on online shopping in Flipkart

Thank you