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A

SUMMER TRAINIG REPORT


ON
CUSTOMERS ATTITUDE TOWARDS:
Amazon Online Service Pvt. Ltd.

SUBMITTED
IN PARTIAL FULFILMENT FOR THE REQUIREMENT
Of

BACHELORS OF BUSINESS ADMINISTRATION


(2015-2018)
UNDER THE GUIDANCE
OF
Ms. Suman Yadav
(ASSISTANT PROFFESOR)

SUBMITTED BY
Harsh Kohli
ENROLLMENT NO. 35390101715
[5th SEMESTER]

FAIRFIELD INSTITUTE OF MANAGEMENT & TECHNOLOGY


Affiliated To Guru Govind Singh Indraprastha University,
FIMT Campus, Kapashera,
New delhi-110037
ACKNOWLEDGEMENT

I take this opportunity to express my heartiest gratitude to Fairfield Institute of Management &
Technology for permitting me to undertake this research and supporting me during this research
and otherwise also.

I would like to thank Ms. Suman Yadav who not only played the role of my philosopher and
guide but also mentored me at every stage of my project work. I would like to extend my hearty
thanks to entire faculty members of BBA department for their constant cooperation and support to
take decision during the course of my research. I would also like to thank my parents for their
support and blessing without which this project could not have been completed. Indeed I shall
remain ever grateful to them.

I am also thankful to college library and computer centre management staff for their constant
support.

The experience I gained during this research project is of immense importance in the academically
and more on professionally.

Harsh Kohli
35390101715
CERTIFICATE

This is to certify that the project report entitled Customer Attitude Towards Amazon India
Online Services Pvt. Ltd. submitted by Harsh Kohli is a bona fide piece of work conducted
under my direct supervision and guidance. No part of this work has been submitted for any other
degree of any other university. It may be considered for evaluation in partial fulfilment of the
requirement for the award of degree of Bachelors of Business Administration.

Date: Ms. Suman Yadav


(Asst. Professor)
Fairfield Institute of Management & Technology,
New Delhi
TABLE OF CONTENTS

S.No. CONTENTS Page


No.

Chapter 1 Introduction 7

1.1 Brief overview of study 8

1.2 Objectives of the study 10

1.3 Scope & significance of the study 11

Chapter 2 Literature Review 12

2.1 Project Defined 13

2.2 Brief History of Project Management 15

2.3 Difference of project management & project marketing 16

2.4 Areas discussed in Project Management 17

2.5 Project Management Processes 18

Chapter 3 Industry Overview 20

3.1 Past, present and future trends 21

3.2 Major Players and their respective market share 22

Chapter 4 Company profile 23

4.1 About Company 24

4.2 The Launching of Amazon Kindle Project 25

Chapter 5 Research Methodology 30

2.1 Universe 31

2.2 Simple size and sampling technique 31

2.3 Data collection 32


2.4 Tools of presentation 32

Chapter 6 Finding And Analysis 33

6.1 General finding 34

6.2 Finding based on questionnaire responses 33

Chapter 7 Conclusion, Recommendation & Limitations 47

7.1 Conclusion 48

7.2 Suggestions 49

7.3 Limitations 50

Bibliography 51

Annexure 52

Sample Questionnaire 53
List of Charts and Tables

Sl No Title Page No
1 Charts and Tables Regarding using Amazon India.com 32

2 Charts and Tables Regarding consideration while 33


shopping on Amazon India.com

3 Charts and Tables Regarding the customer statisfaction 34

4 Charts and Tables Regarding comparison with other 35


online shopping platforms

5 Charts and Tables Regarding conditions of purchasing 36


on Amazon India.com

6 Charts and Tables Regarding recommending Amazon 37


India.com to others

7 Charts and Tables Regarding services of Amazon 38


India.com

8 Charts and Tables Regarding satisfaction with quality 39


that Amazon India.com serves

9 Charts and Tables Regarding prices at Amazon 40


India.com

10 Charts and Tables Regarding advertisement of Amazon 41


India

11 Charts and Tables Regarding marketing strategy of 42


Amazon India.com
CHAPTER - 1

INTRODUCTION
1.1 Brief overview of Study

India has an internet users base of about 450 million as of July 2017, 40% of the population.
Despite being the second-largest userbase in world, only behind China (650 million, 48% of
population), the penetration of e-commerce is low compared to markets like the United States (266
million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding around 6
million new entrants every month. The industry consensus is that growth is at an inflection point.

In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail
activities. Demand for international consumer products (including long-tail items) is growing
much faster than in-country supply from authorised distributors and e-commerce offerings. In
2015, the largest e-commerce companies in India were Amazon India, Snapdeal, Amazon India,
and Paytm. India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6
billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-
commerce market is travel related. According to Google India, there were 35 million online
shoppers in India in 2014 Q1 and was expected to cross 100 million mark by end of year 2016.
CAGR vis--vis a global growth rate of 810%. Electronics and Apparel are the biggest categories
in terms of sales. According to a study conducted by the Internet and Mobile Association of India,
the e-commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also
stated that online travel accounts for 61% of the e-commerce market. According to a study done
by Indian Institute of ecommerce, by 2020 India is expected to generate $100 billion online retail
revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set
to grow four times in coming years. India's retail market is estimated at $470 billion in 2011 and
is expected to grow to $675 Ban by 2016 and $850 billion by 2020, estimated CAGR of
10%.According to Forrester, the e-commerce market in India is set to grow the fastest within the
Asia-Pacific Region at a CAGR of over 57% between 201218. As per "India Goes Digital", a
report by Avendus Capital, the Indian e-commerce market is estimated at Rs 28,500 Crore ($6.3
billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today.
Online travel market in India had a growth rate of 22% over the next 4 years and reach Rs 54,800
crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at Rs 3,600 crore
(US$800 million) in 2011 and estimated to grow to Rs 53,000 crore ($11.8 billion) in 2018. Overall
e-commerce market had reached Rs 1,07,800 crores (US$24 billion) by the year 2015 with both
online travel and e-tailing contributing equally. Another big segment in e-commerce is
mobile/DTH recharge with nearly 1 million transactions daily by operator websites. A new sector
in e-commerce is online medicine, selling complementary and alternative medicine or prescription
medicine online. There are no dedicated online pharmacy laws in India and it is permissible to sell
prescription medicine online with a legitimate license. Online sales of luxury products like
jewellery also increased over the years. Most of the retail brands have also started entering into
the market and they expect at least 20% sales through online in next 23 years.

Amazon.com, Inc., commonly known as Amazon (/mzn/), is an American electronic


commerce and cloud computing company based in Seattle, Washington that was founded by Jeff
Bezos on July 5, 1994. The tech giant is the largest Internet-based retailer in the world by total
sales and market capitalization.[3] Amazon.com started as an online bookstore and later diversified
to sell DVDs, Blu-rays, CDs, video downloads/streaming, MP3 downloads/streaming, audiobook
downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and
jewelry. The company also produces consumer electronicsnotably, Kindle e-readers, Fire
tablets, Fire TV, and Echoand is the world's largest provider of cloud infrastructure services
(IaaS and PaaS). Amazon also sells certain low-end products like USB cables under its in-house
brand AmazonBasics. Amazon has separate retail websites for the United States, the United
Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil,
Japan, China, India, and Mexico. Amazon also offers international shipping to certain other
countries for some of its products. In 2016, Dutch, Polish, and Turkish language versions of the
German Amazon website were also launched. In 2015, Amazon surpassed Walmart as the most
valuable retailer in the United States by market capitalization. Amazon is the fourth most valuable
public company in the world, the largest Internet company by revenue in the world, and the eighth
largest employer in the United States. In 2017, Amazon announced their plans to acquire Whole
Foods Market for $13.4 billion by the end of the year, which would vastly increase Amazon's
presence as a physical retailer. The acquisition was interpreted by some as a direct attempt to
challenge Walmart as a physical store.
AMAZON IN INDIA

Amazon is an American company found by Jeff Bezos in 1994. The company opened in India in
2013 named as Amazon India its first warehouse in Bangalore, Gurugram, Soorat and many states
in India. Today the company works with more than 1500 suppliers. As on date more than 90%
orders of Amazon India are handled via warehouses which help in quick and efficient service. A
humble beginning from books, Amazon India now has a gamut of products ranging from: Cell
phones, laptops, computers, cameras, games, music, audio players, TV's, healthcare products,
washing machines etc. etc. Still, Amazon India derives around 50% of its revenue from selling
books online. Amazon India is the Indian market leader in selling books both offline and online, it
enjoys an online share of around 80%. The electronic items have a large number of players like
Naaptol, Letsbuy, Indiaplaza, Tradus, Infibeam, Yebhi etc. The electronic market share is
distributed among them in different unknown proportions. India has around 33.5 crore internet
users today where as the number of homes with Cable and Satellite (C&S) television is 20.5 crore.
The expected internet users will reach a figure of 80 crore by 2014 and C&S homes are expected
to be 44 crore by 2014. Thus India has a tremendous internet growth and with the customers getting
accustomed to e-commerce, the future of e-commerce sector is definitely rosy. An approximated
25 lac people have transacted online this year, the number is all set to increase with time. Also to
mention most of the Amazon India customers use internet from PC's/Laptops to order goods. The
use of mobile internet is very less at the moment, but with the advent of smart phones the use of
mobile internet for e-commerce transactions will soar with time. India has 98 crore mobile net
users at the moment, the number is expected to swell to 122.5 crore by 2014.

1.2 Objectives of the Study

The main objectives of the present project work are as following

To know the level of customer satisfaction towards Amazon India.


To know the various factors affecting the choice of Amazon India.
To study about the various factors influencing the customers
.
However the main focus was to bridge the gap between the theoretical and practical knowledge of
mine.
CHAPTER - 2

LITERATURE REVIEW
2.1 Project Defined

A project can be considered to be the accomplishment of a particular objective, which


involves a chain of activities and duties with the use of resources. It has to be finished within a set
requirement, having definite start and end dates (Munns & Bjeirmi 1996, p. 81).

Features of a project
According to Project Management Body of Knowledge Guide (2004) the essential natures
of a project are temporary venture, unique deliverable, and progressive elaboration. In Laymans
Term, temporary means there is a deadline or target date. It is unique in the sense that a specific
and desired outcome is the objective with budget that limits resources (PMBOK 2004, p. 8).
Project is described as temporary endeavors since they are activities were a unique product,
service, or result is created with distinct and definable time frame. The organization of a project
involves modified activities to support this feature, as such, a main sign of project success is how
it performs effectively given a specific schedulethat is, and it does start and end on time.
Another feature of a project is its Unique Deliverable. Unique means that the product or
service is dissimilar in several distinguishing way from all other products or services. Uniqueness
does not indicate that there is no resemblance to other projects, but that the range for a particular
project has express that it must be produced within limits, all the way through risks, with particular
resources, at a particular place, and within a definite period; for that reason, the procedure to create
the deliverable as well as the deliverable itself is unique.
The distinctive procedure and deliverable brings the third feature of a project: progressive
elaboration. Project management is a set of interconnected processes applied in a progressively
elaborative approach, in which to create the deliverable. Progressive elaboration is the enlightening
and meeting point of information through time. For instance, in the manufacturing design process,
a comprehensive and extensive idea may be an opening point for the design team; but in the course
of the design process, the idea is narrowed to a particular range and is more elaborated to
accomplish the completed design. In addition, it may go on to be elaborated and not be finalized
until the product, service, or result is delivered.
Projects distinguished to operations and from programs

Organizations carry out work. Work usually can be categorized into either projects or
operations, though in some instances both of them may have common characteristics. Both
operations and projects have several characteristics in common such as, people carry out both the
activities, both are guarded by limited resources, both are planned, executed, and controlled.
Projects and operations vary mainly in its repeatability. Operations are continuing and
cyclic while projects are unique and temporary as described in the preceding paragraphs. Most
organizations perceived projects as a way to respond to requests which are not within the reach of
the organizations usual operational limits (Choudhuri, n.d., p 21).

Project Management Defined


Project management is the use of facts, proficiency, tools, and procedures to project
activities to meet project requirements. Therefore, for success to be attained, the project manager
must be skilled in using the specifications to meet or surpass stakeholders needs and expectations,
and operate following procedures which allow a project team to function (Choudhuri, n.d. p. 3).
In program management, the Program Manager is accountable for making sure that the
overall program is accomplishing the company goals. This call for each of the project managers to
administer their individual projects in a way that simply combine into the overall program
preparation (Robertson, n.d., p. 1).Thus, the program manager is in charge for evaluating the whole
program. The tasks involve taking into account the risk supervision strategies for each individual
project and evaluating the collective risk of the program.

Factors involved in Project Management


The factors involved in the project management usually fall under the course of time, cost
and quality. Time refers to the available period to bring the project, cost corresponds to the sum of
money or resources accessible and quality stands for the fit-to-purpose that the project should
be complete to be a success (Jenkins 2005, p. 6).
In the actual field, time is commonly fixed in a project while the quality of the finished
project will depend on the resources accessible or cost (Bureau of Reclamation, n.d., p. 2).
Likewise if the work focuses to a fixed level of quality, the cost of the project will rely based on
the time available.

2.2 Brief History of Project Management

Project management has been used since the Egyptian epoch, yet, it has been about half a century
ago that businesses begin relating organized project management tools and procedures to difficult
projects. During 1950s, Navy engaged current project management systems in their Polaris project.
Between 1960s and 1970s, huge construction and engineering corporations made use of ideas and
tools of project management to administer large finances, and projects. In the 1980s,
manufacturing expansion divisions started to take up and apply complicated project management
practices (Carayannis, Kwak & Anbari 2003, pp. 2-5). By the 1990s, the project management
presumptions, tools, and systems were broadly established by different industries and businesses.

Who are the stakeholders?


Stakeholders are fundamental element of a project. Stakeholders are entities who have a
venture in the project. Fundamental in the sense that they are the key people who will provide
the requirements, manipulate the design of the project and eventually, the people who will
accumulate the benefits of the finished project. There are different kinds of stakeholders and
every kind should be handled in a different way:
Executive stakeholders are those who are in charge of the financial aspects. Typically they
are managers or directors who are concerned with profit-making goal for the project.
Therefore, they are people from the company who pay the bills. They must limit themselves
to commercial side and be inactive in technical design.
End-users are the entities that will use the end product. This group of stakeholder is also
known as customers.
Experts are the people from different fields that will have a contribution on the projects
technical side. Meaning, they have different specialization and their inputs are needed for
the technical area of the project. Examples of these experts are the people of graphic
designing, support and sales representatives, sometimes lawyers and accountants (Jenkins,
2005, p. 9).
The objective of stakeholder study is to build up a strategic outlook of the individual and
institutional condition, and the connection between the diverse stakeholders and the objectives
recognized (Gawler 2005, p. 18). Stakeholder analysis is an on-going procedure that must employ
diverse groups, as issues, actions, and agendas grow. The full involvement of stakeholders in both
the plan and completion of projects is a gateway (but not a promise) to their victory. According to
Gawler (2005), stakeholder participations are as follows:
offer local people manage over how project activities influence their lives is necessary for
sustainability
creates a sense of possession (if initiated early in the design procedure)
offers prospects for education for the project team and for stakeholders themselves
Builds ability and leads to dependability.
It is significant that stakeholder involvement not be restricted, or controlled by any one assembly.
Once the project has established common ground, and has discussed its objective with partners
counting neighboring stakeholders, the stakeholder contract should be evidenced in writing
(Gawler 2005, p. 18). This may appear excessively official but it has been revealed time and again
to give transparency, and to avoid (or resolution) disagreement in the future.

2.3 Difference of project management & project marketing

The table below shows a summary of comparison between project management and project
marketing.
The table summarizes the most vital points of junction and disagreement between the two
aspects and presents a source for new and modern ways for research and administrative progress.

2.4 Areas discussed in Project Management

The Basic Project Management Structures


A project organization is an arrangement that supports the management and completion of
project actions. A chart of organization illustrates where each employee or possibly a stakeholder
is positioned in the project structure. Its major cause is to form a setting that encourages
connections among the group associates with a least amount of interruption, overlaps and
discrepancy (PM4DEV 2013). Meaning, a project organization chart is a plain graphical diagram
of the people drawn in the project and where they fit in general organization, or project. It also
suggests that the creation of an appropriately planned organization chart will be a key to project
success. A basic model of an organizational structure is the Programmatic-Based Structure. It
refers to a conventional structure in which program division managers have official power over
the majority of resources (PM4DEV 2013, n.d.). It is only appropriate for projects in one program
segment. On the other hand, it is not appropriate for projects that need a various combination of
people with dissimilar skill within the range of program sectors. Below is an example of chart on
Programmatic-Based Organization Structure.
As seen in the organizational structure, the most evident benefit of programmatic based
projects is that there are obvious outline of authority. In huge projects, the project managers are
likely to be also the program unit manager. Negotiation is not needed with other program units for
resources, as all of the staff considered necessary for the project belongs from the same program
area (PM4DEV 2013). One more benefit of this kind of organization is that the team members are
usually known with each other, given that they all are employed in the same area.

2.5 Project Management Processes


Typical life cycle phases
The project life cycle provides the starting point and the ending point of a project. It also
establishes which transitional procedures at the beginning and the end of the project are integrated
and which are not (Choudhuri, n.d. p. 8).

The first phase in project life cycle is Initiating. It is the formulation period of a possible
business engagement or a contract with the client or user. It provides a platform for a possible
discrepancy directly on the project (Williamson 2001, p. 9). Therefore, the idea of initiating phase
is to lay down the project up for accomplishment. It offers the privilege of having a discussion of
people involved before anything has been started. As illustrated in the diagram, the beginning starts
from initiating and ends through closing. It signifies the start of the project which is the initiation
process while the end of the project is the closing.
The second phase is planning. It is the stage of arrangement and refinement of the
objectives. It also involves picking the best of the alternative lines of action to reach the project
goals (Williamson 2001, p. 9).The sum of planning performed must be proportionate with the
range of the project and the value of the information developed. Planning is a continuing effort all
through the existence of the project. As shown in the diagram, executing and controlling have a
common depth under the planning stage, showing that these activities need same level of effort
and have a connotation related to that of making the product, creating the service, or producing the
result.
In a small project it is likely that one plan may be used to describe the full range of work
and all the resources required to complete that work. For larger projects, planning will be achieved
at different levels of detail at different times. In summary of this, all types and sizes of project
require preparation to re-plan from the very start. Without cautious planning it is possible that the
project will not succeed to accomplish its objectives.
However, the planning phase may include tools that are useful to project managers. An
example is the Gantt chart. A typical device that permits managers to organize and plan a particular
project is what the so-called Gantt chart. Henry Laurence Gantt built up this tool on project
management during the 1900s. This chart is basically made up of horizontal bars showing the
duration of each duty. It is normally used in staging a specific report and to be explained to
stakeholders. The weakness of this is that it may not hold all the data required by the manager of
the project in order to formulate decisions for the duration of the project (Supplemental Topic
2008).
The last phase is Closure. It involves formalizing receipt of the project and bringing it to
an organized ending. A post project review is practiced to determine to what level the profit have
been accomplished in the project. Find out if there are any needs for further improvements or
amendments. There should be assurance that the project is handed over to a reliable staff who will
deliver the results. Lessons learned session maybe conducted. Recognition of outstanding
performance of specific people who are part of the projects success takes place. Finally,
celebration of project completion may also take place. Therefore, closure is just a matter of
recognizing that everything arranged has been properly delivered. Closure takes place as intended
at the end of the project or earlier if the need or validation for the project no longer exists.
CHAPTER-3
INDUSTRY OVERVIEW
3.1 Past, Present and Future Trends

India has an internet user base of about 250.2 million as of June 2014. The penetration of e-
commerce is low compared to markets like the United States and the United Kingdom but is
growing at a much faster rate with a large number of new entrants. The industry consensus is that
growth is at an inflection point. Unique to India (and potentially to other developing countries),
cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of
which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-
commerce business in India in the long run and there is a need to make a shift towards online
payment mechanisms. Similarly, direct imports constitute a large component of online sales.
Demand for international consumer products (including long-tail items) is growing much faster
than in-country supply from authorized distributors and e-commerce offerings. India's e-commerce
market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion
in 2012. About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online
mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million as of 2009) India
has close to 10 million online shoppers and is growing at an estimated 30% CAGR vis--vis a
global growth rate of 810%. Electronics and Apparel are the biggest categories in terms of sales.
Key drivers in Indian e-commerce are:

Increasing broadband Internet (growing at 20% MoM) and 3G penetration.


Rising standards of living and a burgeoning, upwardly mobile middle class with high
disposable incomes
Availability of much wider product range (including long tail and Direct Imports)
compared to what is available at brick and mortar retailers
Busy lifestyles, urban traffic congestion and lack of time for offline shopping
Lower prices compared to brick and mortar retail driven by disintermediation and reduced
inventory and real estate costs
Increased usage of online classified sites, with more consumer buying and selling second-
hand goods
India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 billion
by 2016 and $850 billion by 2020, estimated CAGR of 7%. According to Forrester, the e-
commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of
over 57% between 201217. As per "India Goes Digital", a report by Avendus Capital, a leading
Indian Investment Bank specializing in digital media and technology sector, the Indian e-
commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel
constitutes a sizable portion (87%) of this market today.

3.2 Majors Players and their Respective Market Shares


CHAPTER - 4

COMPANY PROFILE
4.1 ABOUT COMPANY

Amazon.com AMAZON CAN BE ONE OF THE MOST SUCCESSFUL COMPANIES ALL


OVER THE WORLD. RISKS ARE BIG, BUT PROFITABILITY CAN BE ALSO BIG - Morgan
Stanley Dean Witter

Amazon.Com is a top online retailer business, present for trade are diverse products such
as books, music albums, movies, videos, gadgets, electronics, computer software, video games and
house products helping about 22.5 million clients in more than 150 countries. The company was
started by Jeff Bezos in July 1995 in Washington USA (Amazon.com Inc, n.d.). The founder
finished his studies in Princeton University with the degree of BS in Electrical Engineering and
Computer Science. His professional occupation began in 1988 at Bankers Trust Company, where
he was Vice President in 1990. At the end of the 1990, he transferred to a Wall Street investment
firm, D.E. Shaw & Co. where he became a Senior Vice President in 1992. In those early years,
Bezos become aware of a significant prospect on the online trade. He prepared a record of potential
products that could be put up for sale online, counting books, publications, music, and others were
he finally come to a decision to begin selling books (Amazon.com, Inc., n.d.).

The major causes of his selection were for the reason that there are more books to put up
for sale than music albums and as well as because the book publishing production is more
reachable than the music production, mostly controlled by half a dozen of huge record companies.
He resigned on his occupation in June 1994 and lived in the West, preferring Seattle as initial point
because of its closeness to a main book distributor, Ingrams Warehouse in Oregon (Amazon.com,
Inc., n.d.). This is how the business that took its name from the river with the largest water flow
of the planet began in a garage downtown Seattle starting with four recruits, to be the leading flow
of e-commerce book trade. The company's aim is to become the top spot to purchase, locate and
discover any merchandise or service accessible online. Amazon.com aims to go on to improve and
widen its brand, buyer base and electronic trade proficiency with the objective of creating
customers' ideal online shopping place, in the United States and across the globe.
4.2 The Launching of Amazon Kindle Project

In November of 2007, Amazon launched its newest program Kindle, an e-reader made to
permit uncomplicated admission to an immense collection of electronic books to be downloaded
and transferred on the tools. It was massively trendy, sold out within few hours and endured being
out of stock for quite some months. More than 90,000 books were accessible for download at its
date of launch; that directory grew to more than 160,000 by August 2008 and was rising by more
than 25,000 titles per month. Reading materials such as blogs, newspapers and books are laden on
the gadget wirelessly using the Amazons system and are available in a proprietary design for the
Kindle. Kindle users can as well send documents to Amazon to be changed and available on the
Kindle, and use such materials in email using the Kindles browser. In the launching and marketing
of this kindle project, the company has carefully consider all stakeholders involved and laid great
emphasis on it key stakeholders-the customers.

In 2011, Amazon president Jeff Bezos announced that the company is selling over one
million Kindle devices for three straight weeks, a remarkable revelation from the biggest Internet
trader. The revenue figures comprise the new Kindle Fire tablet and all other editions of the Kindle
e-reader. Together with this increase in sales, the company has continued to accommodate the
follow-up services to their major stakeholders which are the customers. Again, in this project, the
positioning of its stakeholders who are mainly the customers was given priority by the company.
Amazon has provided an online troubleshooting page which will enable its customers to personally
troubleshoot their Kindle device. They even provided contact numbers for customer support over
the phone which allows its customers to ask queries to Amazon Kindle technical experts.
Amazon.com also created forums on its major website to accommodate some frequently asked
questions a customer might come across. Amazon.com also sees their book authors as
stakeholders. Amazon.com Publishing declared that their authors will receive payments once a
month, 60 days behind.

On the other hand, stakeholders such as shareholders and investors were also given notice in the
rise of Amazons Kindle. According to the letter of Amazon President Jeff Bezos to his
shareholders, he assured that the success of their programs were for long term extent. He
mentioned that the company will balance the attention on monetary growth which highlights on
long-term profitability and investment supervision. He again emphasized his obsession in serving
his customers which brought the company with so much success.

Another essential stakeholder of the company is the employees. He also mentioned in the
said letter that the past years victory of the company is the fruits of labor of his brilliant and
industrious groups of employees. In the launch of diverse programs of the company, Jeff Bezos
has maintained to set high standards in terms of hiring employees, to assure the continuous success
of Amazon.

Amazon in Determining Its Stakeholders


At present times, stakeholders are gradually more apprehensive about accountability and
administration of a specific business. In the Amazon.com, there are a several stakeholders in the
corporation. Amazon has acknowledged its main stakeholder group (its customers). As an
outcome, the company places consumer service as its leading priority. Jeff Bezos (Amazons
founder and CEO) stated in one editorial I believe that the success we have had over the past 12
years has been driven exclusively by that customer experience. We are not great advertisers. So
we start with customers, figure out what they want, and figure out how to get it to them. In other
word, the companys enthusiastic to stick to its viewpoint and showing significant importance to
their number one stakeholder which are the customers.
Second are the shareholders of Amazon as it is a publicly apprehended company. These
stakeholders are more concerned on the return of their investments. Finally, Amazons
stakeholders consist of the employees as they are a main factor in delivering Amazon's success.
The Amazon Company views the employees as their backbone in operations. Every day operations
rely on these stakeholders who work in numerous diverse areas with the goal to grant customers
with the point of service they anticipate when interacting on the internet or discussing to a member
of staff on the phone.

Ways of improving product and service delivery in order to ensure long term sustainability.
To gain customers and increase profit are the major goals of a typical business. But to have
a continuous success, a company should maintain their customers loyalty to their products.
Research conducted by Pepprs & Rogers (1993) has shown that the cost for an enterprise to
develop a new customer is 10 times as much as the cost for maintaining an existing customer.
Pepprs & Rogers (1993) also reveal that if a company put 5% of its marketing cost on customer,
the companys effectiveness can be increased by 60% to 100%. This therefore shows that
customers are very important to all business and for a company to attain the goal of gaining
customers and increasing profit; the business should present quality products and services as well
as marketing to customers. As for the Amazon.com, the transactions take place over the internet
thus utilizing the modern technology. According to Accenture, the technology consulting company
it has recommended that businesses that use technology in transactions should lift the quality of
their products and customer service by improving the following:
Data Management and investigation - This involves using information gathered from
customer to evaluate their preferences with regards to products and services. Thus, the company
can evaluate what specific features of product they should improve or remove.
Insight-driven advertising - This includes gaining insights into company from client data
so the managers can perform more efficient marketing. As a result, the company would have an
idea how their company looks like from the customers perspective.
Self-service optimization - This includes finding ways for customers to cooperate with the
company when they wish for. In the case of Amazon, the company has provided websites that
offers customer service or troubleshooting online. Specifically in Amazon Kindle project, the
customers may just ask for help online from customer supports of the company and eventually, the
customers could fix or troubleshoot for their Kindle device. Thus, a company should also create
ways that will make their customers interact with them and do the self-service to accommodate
their needs.
Workforce efficiency - This involves motivating the employees to accept innovative ways
in improving customer handling by providing tools and guidance to carry out enhanced service.
Thus, the employees should be up-to-date with regards to the tools that could assist them in
working and supporting customers.
How Amazon.coms marketing strategy impacts on levels of customer acquisition, retention,
and loyalty.

To become a customer-oriented company is the mission of Amazon.com

Amazon, the largest online bookstore, started to earn income by 2002. This is a fragment
of excellent news to worldwide electronic business progress. The company has adopted marketing
strategies that will enable Amazon to achieve and attract customer and gain their loyalty. To boost
the marketing aspect of Amazon, the company adapted the CRM or Customer Relationship
Management approach. CRM is a mixture of hardware, software, procedure, relevance and
administration assurance to develop client service, maintain clients and present methodical
capabilities (Roberts, A. & Wallace, W. 2002, p. 14). The vibrant practice of running a Customer-
company connection makes the purchasers prolong mutually advantageous profit-making
exchanges and discourage from involving in exchanges that are unbeneficial to the business
(Roberts, A. & Wallace, W., 2002, p. 14). As the competition in market gets tighter, the customer
loyalty has become one of the target marketing objectives of CRM. Customer loyalty suits to be
the determinant component that manipulates the Amazons long-term earnings. As a symbol of the
market share, customers devotion to company is more significant than that to consumer
considered market share. As an outcome, enterprises executives desire to pay much more
consideration to develop customer loyalty features, in order to make the companys project
increase vital competitive improvement in the vicious competition. Excellent service is also a
significant point of magnetizing clients to prefer Amazon.com. Knowing online shopping as
unusual, sellers and buyers cannot converse to each other straightforwardly. Furthermore clients
do not have the opportunity to see the actual products before they buy. Thus, the Amazon.com
thinks that both customers and sellers necessitate constructing a good connection, and they must
have to serve their clients carefully to build assurance and trust. The embedded marketing system
that Amazon uses for the customers convenience is perhaps the best model of the Amazon.coms
general approach to online marketing. Customer tracking is an Amazon.com stronghold. If the
customers allow the Website attach a bookmark on their computer, they will be receiving helpful
features that will make their shopping experience much more convenient in stylish way.
Furthermore, delivery is a significant component of online shopping. To Amazon.com, it has
provided advertising to assist its clients to set aside the high price shipment. It frequently promotes
free of charge shipment at usual period or giving various discount on the delivery. -Customer
Loyalty of Amazon.com helps to build a long lasting relationship- Based on a survey performed
by the Temkin Group; Amazon.com is one of the companies reaching the top rates of customer
loyalty in America. The survey has found factors proving the result of their study. First is the
customers uncertainty to shift to other company. Thus, customers of Amazon.com has become
satisfied with its services, they could no longer risk to spend time in trying other companies.
Second is the customers readiness to purchase more goods from Amazon.com. Hence, the impact
of their quality service has built loyalty to their customers. And lastly is the customers willingness
to suggest it to others. Therefore, the impact to customer acquisition is increasing. As a whole, the
marketing strategies of Amazon.com such as the use of CRM and embedded marketing system,
the company was able to attract customers, gain their loyalty and maintain the relationship with
these key stakeholders. Their online marketing strategies such as attention-catching
advertisements and good delivery services have drawn attention to the customers. Through CRM
and the embedded marketing system, Amazon.com has improved its customer service efficiency
and effectiveness. The promos on their delivery services somehow gain the customers loyalty.
Therefore, their marketing strategies are working, giving a high level impact on the customer
acquisition, retention and loyalty. As a whole, project management played a major role in
achieving customer satisfaction. Through project management, projects by a company are carried
out efficiently and successfully. In Amazon.com projects such as the launching of Amazon Kindle
and its latest editions Kindle Fire etc., the customers are the main stakeholders that benefit on the
project. These customers experience quality online shopping experience with convenience. Thus,
the objective of project management has been attained in the company Amazon.com. The impact
on customers resulted to customer loyalty, preservation and acquisition of more customers.
CHAPTER- 5

RESEARCH METHODOLOGY
5.1 Universe

The Research work is based on both primary and secondary data, primary data was collected with
the help of questionnaire. Secondary data has also been utilized in order to fabricate the present
research work. Different studies, surveys, reports and other research work have also been referred
to find out the customer satisfaction towards Amazon India.com. With respect to the present work
all the consumers who use Amazon India were the part of the universe and their respective sum
represents the universe.

Research Design - The present research work is based upon the concepts of Exploratory
Research as the prime aim is to explore the customer satisfaction of the people who use Amazon
India.com.

5.2 Sample Size and Sampling Technique

Sampling - Researcher collect needed information from various persons who are associated with
this subject. When such associated persons are in new number research can get information from
all of them in such some people among associated persons are selected and collect information
from them. This selected person represents the whole universe and are called sample.

Sampling Units - Respondents of DELHI who use Amazon India.com

Sample Size - The sample size of 100 respondents was taken for the current study.

Sampling Technique - The sampling technique used for the study was convenience sampling,
wherein the population elements are selected for inclusion in the sample based on the convenience
of researchers
5.3 Data Collection
For the present minor project work both primary and secondary data were extensively used. These
data were collected from primary and secondary sourced respectively

Primary data
Secondary data
Primary data for the present research work has been collected through
A. Observation method.
B. Interview method.
C. Questionnaires.
The secondary data required for the project has been collected from company website, Newspaper,
Magazines, Journals, published work of other researchers and little part has also been referred from books.

5.4 Tools of Presentation

For the current study, different presentation tools were used for presentation of the relevant
information. The following tools were used for analysis:

Bar Chart
Pie Chart
Table Diagram
Chapter-6

Finding and Analysis


6.1 General Findings

Strength:

Top Indian ecommerce portal


Diversified into electronic goods
Two VC investment to build its own delivery system thereby reduce delivery time
Cash on delivery which is making 60% of its income
Industry condition: very high potential
Investors trust
Services and warehousing
Payment options
Established brand

Weakness:

Coordination with suppliers and courier was tough


Price biasing to maintain the margins ( e.g. Low price for the best seller book and more
price for the least wanted)
24/7 customer care, thus even mid night is to delivered within 24 hours
Entry of international on-line competitors in Indian market
Customers are not comfortable with online payment
Not profitable operationally
Time to build confidence among the customers
Middle management retention issues.
Opportunities:

Already working towards customer delight will obtain customer loyalty gradually
Supplier database interface with Amazon India website for JIT procurement
Mobile internet usage is increasing there by chances of increase in sales through mobile
shopping.
Development of m-commerce in the e-market
Increasing internet penetration
Target social medias to reach young population
High interest among VC/PE.

Threats:

Small players and emerging competitor


In capabilities to manage certain costs like delivery cost, bank charges
High competition from major international online retailers
Capture of alternative market by competitors
Major players like Amazon
6.2 Findings Based On Questionnaire

Q1. Did you use Amazon India?


Yes No

TABLE - 1
Response No. of Respondent Percentage

Yes 100 100%

No 0 0%

Total 100 100%

CHART - 1

PURCHASE ON AMAZON
Yes =100% No = 0%

Interpretation: All the response has been taken from the consumers who were the users or have
either used Amazon India.
Q2. Do you find prices at Amazon India reasonable?

Yes No

Cant Say

TABLE 2

Scaling Yes No Cant Say

Frequency 55 34 11

Percentage 55% 34% 11%

CHART-2

Column1

60%
50%
40%
30%
20%
10%
0%
YES = 55% NO = 34% CAN'T SAY =
11%

Interpretation: According to the response obtained, most of the respondents (55%) found the
price at Amazon India reasonable while other 34% respondents do not find it reasonable and the
rest 11% respondents had no response about the price of the products.
Q3. Based on your experience with product, how likely will you buy Amazon India?
Very Unlikely Unlikely
Extremely Likely Very Likely

TABLE 3
Scaling Very Unlikely Extremely Very Likely
Unlikely Likely

Frequency 7 14 55 24

Percentage 7% 14% 55% 24%

CHART-3

CONDITIONS FOR PURCHASING ON


AMAZON INDIA

Very Unlikely =
Very Likely = 24% 7%
Unlikely = 14%
7%
24%
14%

Extremely Likely
= 55%
55%

Interpretation: According to the response obtained, most of the respondents (55%) will
extremely likely buy on Amazon India because it is more affordable than others followed by 24%
respondents who will very likely buy the product while other 14% respondents will unlikely buy
the product and the remaining 7% will very unlikely buy the product.
Q4. Are you satisfied with the services of Amazon India?
Yes
No

TABLE 4

Response No. of Respondent Percentage

Yes 82 82%

No 18 18%

Total 100 100%

CHART - 4

customer satisfaction

Yes = 82% No = 18%


Q5. Main consideration while shopping on Amazon India are?
Price Brand
Quality Promotion activity

TABLE-5
Reason for purchase No. of respondents Percentage

Price 19 19%
Brand 22 22%
Quality 44 44%
Promotion activity 15 15%
Total 100 100%

CHART-5

Consideration while shopping on


AMAZON

15% 19% price=19%


Brand = 22%
22% Quality = 44%
44%
Promotion activity = 15%

Interpretation: According to the response obtained, most of the respondents (44%)


preferred Amazon India because of its quality, followed by 22% respondents who purchased
it due to the Brand Name, another 19% have preferred due the attractive price and Rest 15%
respondents were attracted towards Amazon India due to the Advertisement.
Q6. Are you satisfied with the Marketing Strategy of Amazon India?

Satisfied Very Satisfied


Dissatisfied Very Dissatisfied
Neutral

TABLE 6

Scaling Satisfied Very Dissatisfied Very Neutral


Satisfied Dissatisfied

Frequency 52 20 13 10 5

Percentage 52% 20% 13% 10% 5%

CHART-6

SATISFACTION LEVEL FOR MARKETING


STRATEGY
Very OF AMAZON
Dissatisfied =
Neutral = 5%
10%

Dissatisfied =
13% Satisfied =
52%

Very Satisfied
= 20%

Interpretation: According to the response obtained, most of the respondents (52%) were satisfied
with the overall marketing strategy of Amazon India because of its price, quality and services
followed by 20% respondents were very satisfied while other 13% were dissatisfied , another 10%
respondents were very dissatisfied and the rest 5% were neutral.
Q7. Please rank the services of Amazon India on the following scale?

Outstanding Satisfactory
Somewhat Satisfactory Not Sure

TABLE 7
Scaling Outstanding Satisfactory Somewhat Not Sure
Satisfactory

Frequency 50 25 15 10

Percentage 50% 25% 15% 10%

CHART-7

services of Amazon India

Outstanding = 50%
10%
15% Satisfactory = 25%

50%
Somewhat Satisfactory =
15%
25%
Not sure = 10%

Interpretation: According to the response obtained, most of the respondents (50%) have
ranked the services offered by Amazon India impressed to be outstanding followed by 25%
respondents have ranked the services to be satisfactory, another 15% respondents have ranked the
services to be somewhat satisfactory and the rest 10% were not sure about their services.
Q8.Compared to other online shopping platforms that is available would you say that Amazon
India is:
much better much worse
somewhat better dont know

TABLE 8
Scaling Much Much Somewhat Dont
better worse better know

Frequency 50 34 11 5

Percentage 50% 34% 11% 5%

CHART-8

COMPARISON OF AMAZON INDIA WITH


OTHER ONLINE SHOPPING PLATFORMS
Don't know =
Somewhat 5%
better = 11%

Much better =
50%

Much worse =
34%

Interpretation: According to the response obtained, most of the respondents (50%) think that
Amazon India is a much better platform compared to others in terms of its services and price.
(34%) of them think that is much worse than others while (11%) think that is somewhat better and
the remaining (5%) had no opinion.
Q9. Do you find the Advertisement of Amazon India attractive & knowledgeable?
Very Attractive Not Attractive
Cant say

TABLE 9
Scaling Very Attractive Not Attractive Cant
Say

Frequency 75 20 5

Percentage 75% 20% 5%

CHART-9

80%
70%
60%
50%
40%
30%
20%
10%
0%
Very Attractive = 75% Not Attractive = 20% Can't Say = 5%

Column1

Interpretation: According to the response obtained, most of the respondents (75%) found the
advertisement of Amazon India attractive and knowledgeable while other 20% respondents do not
find it attractive and knowledgeable and the remaining 5% respondents had no response about the
advertisement.
Q10. Would you like to recommend shopping on Amazon India to others?
definitely will recommend probably will not recommend
probably will recommend definitely will not recommend

TABLE 10

Scaling definitely probably probably definitely


will will not will will not
recommend recommend recommend recommend

Frequency 59 18 16 7

Percentage 59% 18% 16% 7%

CHART-10

Recommendations of Amazon to
others
Definitely will recommend =
7% 59%
16%
Probably will not recommend
18% 59% = 18%
Probably will recommend =
16%

Interpretation: According to the response obtained, most of the respondents (59%) will
definitely recommend Amazon India in terms of its affordable price, quality and its advertising
followed by 18% respondents will probably not recommend the product, another 16% will
probably recommend the product and the remaining 7% will definitely not recommend the product.
Q11. Are you satisfied with the quality that Amazon India serves?
Satisfied Very Satisfied
Dissatisfied Very Dissatisfied
Neutral

TABLE 11

Scaling Satisfied Very Dissatisfied Very Neutral


Satisfied Dissatisfied

Frequency 44 28 13 10 5

Percentage 44% 28% 13% 10% 5%

CHART-11

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Satisfied = 44% Very Satisfied = Dissatisfied = Very Neutral = 5%
28% 13% Dissatisfied =
10%

Column1

Interpretation: According to the response obtained, most of the respondents (44%) were satisfied
with the quality that Amazon India offered in terms of its speed and maintenance followed by 28%
respondents who were very satisfied with their products, while other 13% respondents were
dissatisfied with the products, another 10% were very dissatisfied with the products and the rest
5% respondents were neutral.
CHAPTER - 7

Conclusions, Recommendations and


Limitations
7.1 Conclusions

A credible rival can do wonders to an enterprise and Amazon India is no different. The entry of
Amazon in India has enabled Amazon India develop a lot of in-house innovation and organically
developed best-practices - that have now become the industry standard. Amazon India began
operations on the consignment model; goods were procured from suppliers on demand, based on
the orders received through the website. Later, the books-to-electronics e-shop adopted the
warehouse model. The company had its own warehouses, and maintained its own inventory.
However in July 2013, Amazon India launched its model of marketplace just one month after
Amazon launched its marketplace in India. It introduced payments brand PayZippy for online
merchants and customers seeking fast, hassle-free and safe payment options. Some 70 per cent of
its shipments are done by its own logistics company and about half of deliveries are on a cash-on-
delivery basis. Amazon India has recently introduced the next day guarantee delivery service and
shopping from its own mobile application. Given the critical mass of transactions Amazon India
controls - about 100,000 a day - the company is betting that it has the volumes to lay the foundation
of what will be a profitable business. Last but not the least; Amazon India has very clearly
prioritized customer delight as its chief avenue for customer acquisition and retention. This causes
them to build a lot of slack into their existing systems causing higher costs at several points in the
supply chain. How they address this challenge is what will determine their future success.
7.2 Suggestions

Amazon India has successfully placed itself into the prospects mind making it the Indias largest
online store with huge range of products. But Amazon India still needs to work on their core
competence that is books and stationery items. With the entry of Amazon.com it will be a huge
competitive market for Amazon India and hence will have to position itself better, as we still see
that huge percentage of females are still unaware of Amazon India. Those female who purchase,
has a very less frequency which has remained unchanged. Therefore they need to get aggressive
at providing better services which can be fulfilled by reducing the delivery time, selling second
hand products which will increase consumers affordability much more and enhance penetration
into the market. They can even have their retail stores which can give an access to consumers to
feel and analyse the products, which will help them win the consumers faith. Price will still be a
factor as amazon being a huge company will use its economies of scale to remove their competitors
from the market; therefore they need to be more competitive on that aspect. Be very focused on
consumers and build amazing experiences for the customers.
7.1 Limitation of the Study

Following are the important limitations faced during the research work; these
limitations always pose a challenge to the research

The study was conducted in few areas of South Delhi and Central Delhi.
Hence the study may not be useful for projection of behavioral aspect of
customers of other cities.
Money virtually fall short of what ideal field work would cost and may require
shortcuts for the validity of findings.
People lack the time so they did not take interest in Filling questionnaires
Limited time of working and cost involved can be considered as one of the
important limitation.
BIBLIOGRAPHY

www.Amazon India.com

www.thehindu.com/features/magazine/the-Amazon India.../article3290735.ece

http://articles.economictimes.indiatimes.com/2013-10-
15/news/43068552_1_marketplaces-Amazon India-online

http://academic.reportlinker.com/d012905924/The-Indian-E-commerce-Industry.html

www.startupdunia.com/interview-with-Amazon India-founder-binny-bansal-776

www.facebook.com/Amazon India

www.hindustantimes.com/technology/industrytrend/how-Amazon India-broke-indias-
online-shopping-inertia/so-article1-780440.aspx
ANNEXURE
SAMPLE QUESTIONNAIRE

Q1. Do you use Amazon India.com?


Yes No

Q2. Do you find prices at Amazon India reasonable?

Yes No

Cant Say

Q3. Based on your experience with product, how likely will you buy Amazon India?
Very Unlikely Unlikely
Extremely Likely Very Likely

Q4. Are you satisfied with the services of Amazon India?


Yes
No

Q5. Main consideration while shopping on Amazon India are?


Price Brand
Quality Promotion activity

Q6. Are you satisfied with the Marketing Strategy of Amazon India?

Satisfied Very Satisfied


Dissatisfied Very Dissatisfied
Neutral
Q7. Please rank the services of Amazon India on the following scale?

Outstanding Satisfactory
Somewhat Satisfactory Not Sure

Q8.Compared to other online shopping platforms that is available would you say that Amazon
India is:

much better much worse


somewhat better dont know

Q9. Do you find the Advertisement of Amazon India attractive & knowledgeable?
Yes No
cant say

Q10. Would you like to recommend shopping on Amazon India to others?


definitely will recommend probably will not recommend
probably will recommend definitely will not recommend

Q11. Are you satisfied with the quality that Amazon India serves?
Satisfied Very Satisfied
Dissatisfied Very Dissatisfied
Neutral