PROJECT REPORT

ON

“A STUDY OF CONSUMER SATISFACTION OF

PAYTM PRODUCTS”

(Submitted for partial fulfillment for BBA

C.C.S. University, Meerut)

Institute of Management Studies, Noida

SUBMITTED TO:- SUBMITTED BY :

MR.ZUBAIR AHMED SHRUTI SINGH
ROLL NO-1591909726

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 DECLARATION

I hereby declare that the project report entitled “A STUDY OF CONSUMER

SATISFACTION OF PAYTM PRODUCTS” submitted for the BBA Degree is my
original work and the project has not formed the basis for the award of any degree,
associateship, fellowship or any other similar titles.

Signature of the Student:

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 CERTIFICATE

This is to certify that the project entitled A STUDY OF CONSUMER

SATISFACTION OF PAYTM PRODUCTS is the original work carried
out by Shruti Singh student of BBA, C.C.S. University, Meerut, during
the year 2015-2018 in partial fulfillment of the requirements for the
award of the Degree of BBA and that the project has not formed the
basis for the award previously of any degree, diploma, associateship,
fellowship or any other similar title

SIGNATURE OF THE GUIDE

PLACE

DATE

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 ACKNOWLEDGEMENTS

I would also like to express my special thanks to my faculty guide

ZUBAIR AHMED faculty of IMS, Noida for his valuable guidance and support at
all time. I would like to express my deep gratitude to those who have accompanied
me and gave me the guidelines in various ways to make the efforts a reality. I am
grateful to my faculty members and my friends for the encouragement and
enlightening given by him which has been of immense help towards the successful
completion of my project report. 

SHRUTI SINGH
BBA (2015-2018)
591909726

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 TABLE OF CONTENTS

1. Executive Summary 5-6

2. Introduction 7-10
3. Company Profile 11-20
4. Objective of the Study 21-22
5. Literature Review 23-37
6. Research Methodology 38-40
7. Data Analysis & Interpretation 41-59
8. Limitations 60-61
9. Findings 62-63
10. Conclusion 64-65
11. Recommendations 66-68
12. Suggestions 69-70
13. Bibliography 71-73
14. Questionnaire 74-82

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EXECUTIVE SUMMARY

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 EXECUTIVE SUMMARY

The growing use of Internet in India provides a developing prospect for online shopping.

If E-marketers know the factors affecting online Indian behavior, and the relationships
between these factors and the type of online buyers, and then they can further develop
their marketing strategies to convert potential customers into active ones, while retaining
existent online customers. This project is a part of study, and focuses on factors which
online Indian buyers keep in mind while shopping online.

This research found that information, perceived usefulness; ease of use; perceived
enjoyment and security/privacy are the five dominant factors, which influence consumer
perceptions of online purchasing.

A model was developed indicating online shopping behavior and acceptance among
customers in India. The model was tested with a survey sample (n=100). Factor analysis
technique in SPSS was used to classify these factors which buyers keep in mind while
shopping online.

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INTRODUCTION

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 INTRODUCTION

Paytm means ‘Pay through mobile’. It is one of the largest and fastest growing Indian e-
commerce shopping websites launched in 2010.

Paytm is the consumer brand of India’s leading mobile internet company One97
Communications. One97 investors include Ant Financial (AliPay), SAIF Partners,
Sapphire Venture and Silicon Valley Bank.

Our approach is simple - to design something we'd LOVE to use ourselves. Therefore we
listen and take the time to understand our users and take their reactions most seriously.

At team Paytm we set high goals and achieve them. And it’s all to provide YOU, the
user, an experience that's nothing short of awesome!

Actual work done at paytm.com

 Category Management [H&K(Merchandising)]

 Maintaining EDD (Exclusive Discounts Deals)

 Maintaining Banners for the Category.

 Daily Sales Report for EDD.

 Maintaining Offer tags for the products.

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With the rapid global development of the electronic commerce (e-commerce), more and
more businesses are attempting to gain competitive advantages by using the e-commerce to
interact with customers. Consequently, the competition among online retailers has become
fiercer and fiercer. For example, more and more online companies publish the features and
prices of their products in the advertising campaigns, so that customers can become well
informed of the optimal prices when seeking products or services. In order to offset the
price-transparency disadvantage, the competitors have utilized three primary
strategies: (1) geographic differentiations, (2) e-service quality differences, and (3) modest
levers of switching costs. The growth of the online shopping has reduced the role of the
physical geography for many consumers, and some implicit costs, such as those for the
convenience and time utility, can also been shrunk by this geographical irrelevance.
Therefore, the e-service quality differentiation has become the most important thing for
attracting and retaining customers in the online shopping. Moreover, businesses with the
experience and success using the e-commerce are becoming to more and more
realize that the key determinants of the success or failure are not only the website
presence and low price but also include the electronic service quality, i.e. e-service quality
presented the definition of the e-service quality. In their terms, the e-service quality was
defined as “the extent to which a website facilitates efficient and effective shopping,
purchasing, and delivering of products and services”.

Internet is changing the way consumers shop and buys goods and services, and has
rapidly evolved into a global phenomenon. Many companies have started using the
Internet with the aim of cutting marketing costs, thereby reducing the price of their
products and services in order to stay ahead in highly competitive markets. Companies
also use the Internet to convey, communicate and disseminate information, to sell the
product, to take feedback and also to conduct satisfaction surveys with customers. The e-
service quality can not only potentially increase the attractiveness, hit rate, customer
retention, and positive word-of-mouth, but also maximize the online competitive
advantages of the e-commerce. Therefore it is obvious that more attentions should be paid

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on the e-service quality .Moreover, the online shopping environment provides vast
selection, information screening, reliability, and product comparison, which enable that
consumers reduce the decision-making efforts. Thus, the e-service quality has become
one of the key determinants of the success for online retailers.

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COMPANYPROFILE

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 COMPANY PROFILE

ABOUT PAYTM

Paytm is India’s largest mobile commerce platform. Paytm started by offering mobile
recharge and utility bill payments and today it offers a full marketplace to consumers on
its mobile apps. We have over 100mn registered users. In a short span of time Paytm has
scaled to more than 60 Million orders per month.Paytm is the consumer brand of India’s
leading mobile internet company One97 Communications. One97 investors include Ant
Financial (AliPay), SAIF Partners, Sapphire Venture and Silicon Valley Bank.We strive
to maintain an open culture where everyone is a hands-on contributor and feels
comfortable sharing ideas and opinions. Our team spends hours designing each new
feature and obsesses about the smallest of details.Our approach is simple – to design
something we’d LOVE to use ourselves. Therefore we listen and take the time to
understand our users and take their reactions most seriously.
Making stuff easy and intuitive is not our only goal. In addition to usability, we strive to
create accessibility, convenience and credibility. Simplicity reflects in our home page
design and this mantra has been followed throughout the site and our apps.
The world is increasingly mobile: people want access from wherever they are, whenever
they need it. At Paytm, you have the option of recharging and shopping from whenever,
anywhere and are equipped with a secure online wallet called Paytm Cash.
At team Paytm we set high goals and achieve them. And it’s all to provide YOU, the
user, an experience that’s nothing short of awesome!

Awards

 2016 – One97/ Paytm wins the Most Innovative Company of the Year

2015 Award at Business Standard Awards

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 2016 – Paytm wins the Disruptive Digital Innovator Award at NDTV
Digitzing India Awards
 2016 – Vijay Shekhar Sharma featured in Economic Times “India’s Hottest
Business Leader under 40”
 2016 – Paytm won the Frost & Sullivan India ICT Award for Mobile
Commerce Company of the Year in B2C segment.
 2015 – One97/Paytm recognized among Smart Innovators of 2014 at the
Inc India Awards.
 2015 – Vijay Shekhar Sharma recognized among the Most Innovative
CEOs of 2014 by Inc India.
 2015 – Paytm Wallet gets the Best Digital Wallet Award at IAMAI’ India
Digital Awards in Delhi on 15th Jan 2015
 2014 – Paytm App featured in Apple App Store’s Best of 2014 in the
Mobile/DTH Recharge & Shopping Category
 2014 – Paytm is the winner of Indian Express IT Award in Mobility
Solutions 2014
 2014 – Paytm App is a finalist at the international Meffys in Consumer Trust
category
 2014 – Paytm is Gold Winner at the MMA Smarties in the Mobile App
category
 2014 – Paytm is Silver Winner at the MMA Smarties in the mCommerce
category
 2014 – Paytm gets recognized among Delhi/NCR’s Top 50 Brands at a
celebration by Paulwriter
 2014 – Paytm wins the Best Mobile Money product at the 4th India Digital
Awards
 2013 – Paytm wins Knowledge Faber Best Mobile Wallet Program
Award

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  2013 – Paytm wins a special mention in m Billionth Awards in
mCommerce/mBusiness category
 2013 – Paytm is Gold Winner at the MMA Smarties for mCommerce
 2012 – Paytm is recognized as the Most Innovative Startup of the Year at
the Entrepreneur India event organized by Franchise India

Terms & Conditions

Please read the following terms and conditions carefully before registering, accessing,
browsing, downloading or using the Site (defined below). By accessing or using the Site
or by using the Service (defined below), you agree to be bound by these terms and
conditions set forth below including any additional guidelines and future modifications. If
at any time you do not agree to these terms and conditions or do not wish to be bound by
these terms and conditions, you may not access or use the site and immediately terminate
your use of the services.
Your Agreement to these Terms and Conditions for availing Service
The Terms and Conditions (as may be amended from time to time, the “Agreement”) is a
legal contract between you being, an individual customer, user, or beneficiary of this
service of at least 18 years of age, and One97 Communications Limited (One97) having
its registered office at First Floor Devika Tower, Nehru Place New Delhi – 110019 and
headquartered at B-121, Sector-5, Noida – 201301. All services are rendered by One97
through its platform under the brand name ‘Paytm’. Hence all the rights, benefits,
liabilities & obligations under the following terms & conditions shall accrue to the
benefit of One97. (together with its subsidiaries and other affiliates, “us”, “We” or
“Paytm”), regarding your use of our prepaid mobile/DTH recharge purchasing services to
purchase prepaid mobile/DTH recharge (known as “Recharge”) or Services regarding
Semi Closed Wallet of online Paytm Marketplace or such other services which may be
added from time to time (all such services are individually or collectively are referred as
Service or Services as they case may be).

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Service can be used by you subject to your adherence with the terms and conditions set
forth below including relevant policies. Paytm reserves the right, at its sole discretion, to
revise, add, or delete portions of these terms and conditions any time without further
notice. You shall re-visit the “Terms & Conditions” link from time to time to stay abreast
of any changes that the “Site” may introduce.
Eligibility
The services are not available to persons under the age of 18 or to anyone previously
suspended or removed from the services by Paytm. By accepting these Terms &
Conditions or by otherwise using the Services or the Site, You represent that You are at
least 18 years of age and have not been previously suspended or removed from the
Services. You represent and warrant that you have the right, authority, and capacity to
enter into this Agreement and to abide by all of the terms and conditions of this
Agreement. You shall not impersonate any person or entity, or falsely state or otherwise
misrepresent identity, age or affiliation with any person or entity.
PAYTM RECHARGES
We are a Reseller Only. Paytm does not provide mobile service and is only a reseller of
prepaid mobile services by telecommunications service providers or the providers of such
prepaid recharge (the ‘Telco’ or ‘Telcos’) or other distributors or aggregators of such
Telco’s. Paytm is not a warrantor, insurer, or guarantor of the services to be provided by
the Telco’s. Recharge sold by us to you is sold without recourse against us for any breach
of contract by the Telco. Any disputes regarding the quality, minutes provided, cost,
expiration, or other terms of the Recharge purchased must be handled directly between
You (or the recipient of the Recharge) and the Telco.
BILL PAYMENTS
In order to use the Service, you may need to obtain access to the World Wide Web, either
directly or through devices that access web-based content, and pay any service fees
associated with such access. In addition, you must have all equipment necessary to make
such connection to the World Wide Web, including a computer and modem or other
access device.

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Paytm and/or the Paytm business partner reserve the right to charge and recover from the
User, fees for availing the Services. These changes shall be effective from the time they
are posted on to the Paytm Website or over the Paytm business partner channel through
which you are availing the Service. You are bound by such revisions and should therefore
visit the Paytm Website or check with the Paytm business partner channel through which
you are availing the Service to review the current fees from time to time. In the event that
you stop or seek a reversal of the Payment Instructions as may have been submitted,
Paytm shall be entitled to charge and recover from you and you shall be liable to pay
such charges to the Bill Payment Service as may be decided by Paytm. These charges
shall be charged on to your designated Payment Account or in any other manner as may
be decided by Paytm.

Paytm offers a convenient and secure way to make payments towards identified Biller(s)
using a valid Payment Account.

Depending upon the Paytm business partner through whom the Service is availed by you
(i) the specific features of the Service may differ (ii) the number of Billers available over
the Service can differ (iii) the type and range of Payment Accounts that can be used to
issue a Payment Instructions can differ and (iv) the modes/devices over which the Service
can be accessed can differ; and (v) the charges, fees for availing the Service or any aspect
of the Service can differ. Specific details related to these aspects would be available with
the Paytm business partner or the channel over which the Service is being availed.

From time to time, Paytm, at its sole discretion, can add to or delete from such list of
Billers or types of Payment Accounts that can be used in respect of making payments to a
Biller. In any event (i) the type and range of Payment Accounts that can be used for
making payments may differ for each Biller depending on Biller specifications (ii) there
may be an additional fees/charge when using certain types of Payment Accounts in
respect of a Biller; and (iii) the terms upon which a payment can be made to a Biller can
differ depending on whether a Card or a Bank Account is used to issue the Payment

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Instruction. Further depending on the specific facilities allowed by a Paytm business
partner, payments to a Biller can be made either (a) by issuing a Payment Instruction for
an online debit/charge to a Payment Account; or (b) by scheduling an automated debit to
a Payment Account.
In using the Bill Payment Service, you agree to:

1. Provide true, accurate, current and complete information about yourself

(“Registration Data”), your Payment Account details (“Payment Data”), your
Biller details (“Biller Data”) and
2. Maintain and promptly update the Registration Data, Payment Data and Biller
Data to keep it true, accurate, current and complete. If you provide any
information that is untrue, inaccurate, not current or incomplete, or Paytm has
reasonable grounds to suspect that such information is untrue, inaccurate, not
current or incomplete, Paytm has the right to suspend or terminate your account
and refuse any and all current or future use of the Service (or any portion
thereof). The term biller includes telecom operators.

Paytm assumes no responsibility and shall incur no liability if it is unable to affect any
Payment Instruction(s) on the Payment Date owing to any one or more of the following
circumstances:
1. If the Payment Instruction(s) issued by you is/are incomplete, inaccurate,
invalid and delayed.
2. If the Payment Account has insufficient funds/limits to cover for the amount as
mentioned in the Payment Instruction(s)
3. If the funds available in the Payment Account are under any encumbrance or
charge.
4. If your Bank or the NCC refuses or delays honoring the Payment Instruction(s)
5. If payment is not processed by biller upon receipt.

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 6. Circumstances beyond the control of Paytm (including, but not limited to, fire,
flood, natural disasters, bank strikes, power failure, systems failure like
computer or telephone lines breakdown due to an unforeseeable cause or
interference from an outside force)

In case the bill payment is not effected for any reason, you will be intimated about the
failed payment by an e-mail

BUS TICKETS
1. Paytm* is only a bus ticket agent. It does not operate bus services of its own. In
order to provide a comprehensive choice of bus operators, departure times and
prices to customers, it has tied up with many bus operators and service
providers.
2. Paytm’s advice to customers is to choose bus operators they are aware of and
whose service they are comfortable with.
3. Paytm’s responsibilities include:
 Issuing a valid ticket (a ticket that will be accepted by the bus
operator) for its’ network of bus operators.
 Providing refund and support in the event of cancellation.
 Providing customer support and information in case of any
delays / inconvenience.

Paytm’s responsibilities do not include:

 The bus operator’s bus not departing / reaching on time.
 The bus operator’s employees being rude .
 The bus operator’s bus seats etc not being up to the customer’s
expectation.
 The bus operator canceling the trip due to unavoidable reasons.

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  The baggage of the customer getting lost / stolen / damaged.
 The bus operator changing a customer’s seat at the last minute
to accommodate a lady / child.
 The customer waiting at the wrong boarding point (please call
the bus operator to find out the exact boarding point if you are
not a regular traveler on that particular bus).
 The bus operator changing the boarding point and/or using a
pick-up vehicle at the boarding point to take customers to the
bus departure point
4. The arrival and departure times mentioned on the ticket are only tentative
timings. However the bus will not leave the source before the time that is
mentioned on the ticket.

5. Passengers are required to furnish the following at the time of boarding the bus:

 A copy of the ticket (A print out of the ticket or the print out of
the ticket e-mail).
 Identity proof (Driving license, Student ID card, Company ID
card, Passport, PAN card or Voter ID card). Failing to do so,
they may not be allowed to board the bus.
6. Change of bus: In case the bus operator changes the type of bus due to some
reason, Paytm will refund the differential amount to the customer upon being
intimated by the customers in 24 hours of the journey.

7. Cancellation Policy: Read the ticket cancellation policy carefully. Tickets will
be cancelled as per the cancellation policy mentioned with the ticket . The
transaction charges will not be refunded in the event of ticket cancellation

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 8. Refund policy mentioned on the ticket is indicative. The actual cancellation
charges are determined by bus operators and bus providers at the actual time of
cancellation. Paytm has no role in governing the cancellation charges.

9. Cancellation charges are calculated on the actual fare of the ticket. If any
discount coupons are used while purchasing the ticket, the discounted value
would be used to calculate the refund amount when a ticket is cancelled.

10. In case a booking confirmation e-mail and sms gets delayed or fails because of

technical reasons or as a result of incorrect e-mail ID / phone number provided

by the user etc, a ticket will be considered ‘booked’ as long as the ticket shows
up on the confirmation page ofwww.paytm.com.
11. Amenities for this bus as shown on Paytm have been configured and provided
by the bus provider (bus operator). These amenities will be provided unless
there are some exceptions on certain days. Please note that Paytm provides this
information in good faith to help passengers to make an informed decision.
Provision of video, air conditioning and any such other services mentioned by
Paytm’s travel partners in the buses is their own responsibility. Any refunds /
claims due to non-functioning or un-availability of these services needs to be
settled directly with the bus service provider.

COUPON REDEMPTION
Coupon redemption is purely subjected to standard and specified terms and conditions
mentioned by the respective retailer. Coupons are issued on behalf of the respective
retailer. Hence, any damages, injuries, losses incurred by the end user by using the
coupon is not the responsibility of Paytm.
Total cashback for a user cannot be more than 50% of his payments or Rs 10,000,
whichever is higher. This main T&C of Paytm supersedes any offer related to Paytm.

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OBJECTIVE OF THE STUDY

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 OBJECTIVE OF THE STUDY

• To know the Level of Customer Satisfaction on Sales of Paytm

• To know the motivated factors that why the customers wants to buy from Paytm.

• To know the factors that influences the customer.

• To know the customers are satisfied with price and service network

• To know whether Paytm’s performance matching with the customer expectations.

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LITERATURE REVIEW

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 LITERATURE REVIEW

Satisfaction:

Satisfaction is a person’s feelings of pleasure or disappointment resulting from

comparing a product’s perceived performance (out come) in relation to his or her
expectations.

As this definition makes clear, satisfaction is a function of perceived performance and

expectations.

If the performance falls short of expectations, the customer is dissatisfied. If the

performance matches the expectations, the customer is satisfied. If the performance
exceeds expectations, the customer is highly satisfied or delighted.

Many companies are aiming for high satisfaction, because customers who are just
satisfied still find it easy to switch when less good offer comes along. Those who are
highly satisfied are much less ready to switch. High satisfaction or delight creates an
emotional affinity with brand, not just a rational preference. The result is high customer
loyalty.

Some of today’s most successful companies are raising expectations and delivering
performances to match. These companies are aiming for TCS-Total Customer
Satisfaction.

Consumers from their expectations on the basis of messages received from sellers,
friends and other information sources.

Customer Satisfaction may be defined as a qualitative measure where in a customer

experiences various degrees of satisfaction until the performance of the product matches
his expectations.

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Customer’s satisfaction with a product depends on the product’s performance relative to
the buyer’s expectations. If the performance of the product falls short of his expectations
the customer is dissatisfied. If the performance of the product matches his expectations
the customer is satisfied. If the performance of the product exceeds his expectations the
customer is highly satisfied. Customer Satisfaction can be achieved through quality,
value and service.

In educated societies, the human brain has been trained to analyze text in a way that a
reader is able to interpret writing as whatever he or she sees in the meaning of the words
by analyzing the context in which the text was written. Through teaching people to read
and analyze literature, the educated society has become more accustomed to picking apart
the words they are reading. That same process, however, does not hold true for the human
perception of images. Through societal norms, we have grown accustomed to accept
images as truth without using the same analytical process to pick apart images in the way
we do text. The human perception of ―truth in images‖ plays a major role in the modern
day trend of manipulating photographs. In this increasingly digital age, photographs can
be manipulated to portray an illusion of whatever the manipulator wants the picture to be.
This can be especially prevalent in print advertising, where the main goal is to influence
the needs or desires of a consumer with persuasive images. (Barry, Ann Marie Seward:
Visual intelligence, 1997.) World of time keeping in general and mechanical watches in
particular is a fascinating and complex field. Highly complex micro-mechanical systems,
the history of development of movements and design trends and political and personal
intrigues of industry provide for interesting reading and endless opportunity for research.
(David S Landes; Revolution in time, 2004).
Titan's play in the lifestyle category is similar to what US watch and accessory brand
Fossil did --diversifying into eyewear, handbags, jewellery, shoes and apparel (in some
geographies). Titan
Industries, which started as a watch brand in 1984, is taking a fresh gamble--to turn into a
full-scale lifestyle company. The firm's youth brand Fastrack will drive this

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transformation, an effort partly to ensure that the parent brand Titan is shielded from any
risk. Fastrack is already into watches and eyewear, and now it is looking at categories
like bicycles, helmets, shoes and apparel. (Economic Times, 10 march 2012) Every year
hundreds of wrist watches are introduced. Some features innovative designs or
mechanical improvements and others available only in limited editions, keeping the field
interesting for collectors. (Peter Bron; Wrist watch annual, 2004)
Extraordinarily innovative technology coupled with a fresh sense of style in the Titan
Fastrack watches became an instant rage especially with youths. In the Titan portfolio it
is believed to contribute a 4% value. Significant rise in Titan Fastrack watches sales has
subsequently compelled Titan to establish it as a separate brand. More than a need,
wristwatch has now become a fashion statement among the youth. They don‘t consider
the Fastrack brand as cheap but affordable. Titan has made a mark in television
promotions, too, where its advertisements have been noticed for the music tracks used in
them. In 1991, Titan created a set of three promotional films to develop the ‗gifting‘
market. Watches had always been a great gift favourite, but Titan was convinced that
much of the segment‘s potential lay untapped.(Times magazine, March 2001)

Customer perception
Perceptions are always considered relative expectations. Because expectations are
dynamic, evaluation may also shift over the time – from person to person from culture to
cultures. Customers perceive the services in terms of the quality of the service and how
satisfied they are allover with their experiences. These customers – oriented terms –
quality and satisfaction – have been the focus of attention for executives and researchers
alike over the last decade or more. Companies today organize so that they can compete
more effectively by distinguishing themselves with respect to service quality and
improved customer satisfaction

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Customer satisfaction
Satisfaction is the customer‘s fulfillment response. It is a judgment that a product or a
service feature, or the product or service itself, provides a pleasurable level of
consumption – related, fulfillment. In minimal technical terms, this definition can be
translated to mean that satisfaction is the customers evaluation of a product or service in
It is also important to recognize that, to measure the customer satisfaction at a particular
point of time as if it were static, satisfaction is a dynamic, moving target that may evolve
28
over the time, influenced by a variety of factors. Particularly when product usage or the
service experience takes place over the time
satisfaction may be highly variable depending on which point the usage or experience
cycle is focused on.

Determinants of customer satisfaction

Customer satisfaction is influenced by specific product or service features and by
perception of quality as suggested in Fig 2.6. Satisfaction is also influenced by customers

Product and service features: Customer satisfaction with a product or service is

influenced significantly by the customer‘s evaluation of product or service features.
Customers of services will make trade – offs among different service features depending
on the type of service being evaluated and the criticality of the service.

Customer emotions: Customer‘s emotions can also affect their perceptions of

satisfaction with products and services. These emotions can be stable, pre-existing
emotions.

Attributions for service success or failure: Attributions – the perceived causes of

events – influence perceptions of satisfaction as well. When they have been surprised by
an outcome (the service is either much better or much worse than expected) consumers
tend to look for the reasons, and their assessments of the reasons can influence their
satisfaction.

Perceptions of equity or fairness: Customer satisfaction is also influenced by

perceptions of equity and fairness. Customers ask themselves: have I been treated fairly
compared with other customers? Did other customers get better treatment, better prices,
or better quality service? Did I pay a fair price for the service? Was I treated well in
exchange for what I paid and the effort I expended? Other customers, family members

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and coworkers: In addition to product and service features and one‘s own individual
feelings and beliefs, consumer satisfaction is often influenced by other people like other
customers, family members and co-workers.

2.8 OUTCOMES OF CUSTOMER SATISFACTION

Individual firms have discovered that increasing the levels of customer satisfaction can be
linked to customer loyalty and profits. There is an important relationship between
customer satisfaction and customer loyalty. This relationship is particularly strong when
customers are very satisfied. Thus firms that simply aim to satisfy customers may not be
doing enough to endanger loyalty – they must instead aim to more than satisfy or even to
delight their customers. At the opposite end of the satisfaction spectrum, researchers have
also found that there is a strong link between dissatisfaction and disloyalty – or defection.
Loyalty can fall off precipitously when customers reach a particular level of
dissatisfaction or when they are dissatisfied with service/ product.

Fig: Relationship between customer satisfaction and loyalty in competitive industry

Brand loyalty

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The degree to which consumers are committed to particular brands of goods or services
depend on no. of factors: the cost of changing brands(switching cost), the availability of
substitutes, the perceived risk associated with the purchase, and the degree to which they
have obtained satisfaction in the past etc. It may be more costly to change brands as
awareness of substitutes is limited, and because higher risks may accompany services,
consumers are more likely to remain customers of particular companies with services or
goods. Greater search costs and monetary costs may be involved in changing brands of
services than in changing brands of goods. Because of the difficulty in obtaining
information about services, customers may be unaware of alternative or substitutes for
their brands, or they may be uncertain about the ability of alternatives to increase
satisfaction over present brands. If consumers perceive greater risks with services, as is
hypothesized here, they probably depend on brand loyalty to a greater extent than when
they purchase products. Brand loyalty, described as a means of economizing decision
effort by substituting habit for repeated, deliberate decision, functions as a device for
reducing the risks for consumer decisions. Final reason for consumers being more brand
loyal with services, is the recognition of the need for repeated patronage in order to
obtain optimum satisfaction from the seller. Becoming a regular customer allows the
seller to gain knowledge of the customer‘s tastes and preferences, ensures better
treatment, and encourages more interest in the consumer‘s satisfaction. Thus a consumer
may exhibit brand loyalty to cultivate a satisfying relationship with the seller. This is
more pre-dominant in the case of corporate consumers, who regularly make purchases,
year after year. Brand loyalty has two sides. The fact that a service provider‘s own
customers are brand loyal is not a problem. The fact that the customers of the provider‘s
competitors are difficult to capture, however, creates special challenges. The marketer
may need to direct communications and strategy to the customers of competitors,
emphasizing attributes and strengths that he or she possesses and the competitor lacks.
Marketers can also facilitate switching from competitors‘services by reducing switching
costs.

31
 The repositioning strategy is rolled out in three stages: introductory, elaboration
and fortification stages. This involves the introduction of a new or a repositioned brand,
seeking to underline the brand’s value over others, and to broaden the brand proposition. It
is truly tough to change the customer’s perceived attitude towards a brand, and therefore
the risk is great that the attempt to repositioning might be unsuccessful.

After rolling out the strategy, it is time to modify the proposition through update of
the personality and through repositioning. There are benefits and risks with both of this
segments and it is of great significance that they are truly evaluated when deciding the
next step in the process.

Figure 1: Stages in brand strategy development

Establishing the Selecting

Appropriate
Brand Proposition Marketing Mix

Modifying the Proposition Rolling Out the Strategy

-Repositioning -Introductory Stage

-Updating the Personality -Elaboration Stage

-Fortification Stage

The implication with the term” repositioning” is that a company modifies something that
is already present in the market and in the consumer’s mind. The definition of
repositioning changes different individuals and professions.
32
To view the different definitions and perceive a greater understanding about this concept,
three examples of repositioning given by individuals in different professions is stated
below:

“Repositioning is a change, principally about trigging the vision, mission and value in a
new direction that is more suited for the brand in the future”.
-Brand manager
consultant

“Principally, reposition concerns change the consumer’s perception of the brand”

-PR- consultant

“Repositioning is built upon the change unique and differentiated associations with the
brand in some kind of direction, it is about having a balance between the category party
and differentiation when using reposition strategies”
-Leading brand
strategist

From these definitions, it is obvious that reposition is about moving something to a

newer and hopefully to a more attractive and relevant position. The purpose of the
movement differs with regards to what the company wants to achieve. A company might
want to reach out to a larger target group, or be involved in several different positions at
the market. There is also a visible relation between price and quantity aspects. When a
company perceives the market as a demand curve, the purpose is to down stretch or up
stretch in this curve. When moving down it is often spoken of as an expansion down
wards, and when moving up and there is a need for reaching the premium segment and
expand up wards.

33
The principle of repositioning:
When striving towards a new position in the market, it is important to understand that
consumer’s minds are limited. People’s minds select what to remember and it is therefore
significant to convince the consumers with great argument. The market demand changes
rapidly and therefore reposition can be necessary to meet these demands, newer and
stronger arguments have to be established to convince them to stay as loyal customers.

As stated in the literature, repositioning is a very complicated matter and therefore there
are no detailed theories or models. The aim with repositioning differ from person to
person, and the only connection between all the different theories is that repositioning is
moving something from somewhere towards a greater position at the market.

Corstjens and Doyle (1989) identified three types of repositioning strategies:

(1) Zero repositioning, which is not a repositioning at all since the firm maintains its
initial
Strategy in the face of a changing environment;
(2) Gradual repositioning, where the firm performs incremental, continuous adjustments
to its positioning strategy to reflect the evolution of its environment; and
(3) Radical repositioning that corresponds to a discontinuous shift towards a new target
market and/or a new competitive advantage.

After examining the repositioning of several brands from the Indian market, the
following types of repositioning have been identified. These are:

1. Increasing relevance to the consumer

34
 2. Increasing occasions for use

3. Making the brand serious

4. Falling sales

5. Bringing in new customers

6. Making the brand contemporary

7. Differentiate from other brands

8. Changed marketing conditions

It is not always that these nine categories are mutually exclusive. Often one reason leads
to the other and a brand is repositioned sometimes for a multiplicity ofreasons.

A four-phased brand repositioning approach can be followed to achieve the

Intended benefits:

Phase I. Determining the Current Status of the Brand

Phase II. What Does the Brand Stand for Today?

Phase III. Developing the Brand Positioning Platforms

Phase IV. Refining the Brand Positioning and Management Presentation

The benefits that can be derived from brand repositioning exercises can be summarized
as:

 Value over others

 Updated personality

 Relevant position

35
  “Up to date” image

The risks associated with such strategies are:

 Loss of focus

 Neglecting original customers

 Losing credibility for the brand

 Confusing the brand

Therefore, brand repositioning is more difficult than initially positioning a brand because
one must first help the customer “unlearn” the current brand positioning (easier said than
done).  Three actions can aid in this process:

(1) Carefully crafted communication,

(2) New products, packaging, etc. that emphasize the new positioning and

(3) Associations with other brands

36
 Co-branding, Co-marketing, Ingredient branding, Strategic alliances, etc.Those
reinforce the new brand positioning.

This exercise is so critical to an organization’s success that the organization’s leadership

team and its marketing/brand management leaders should develop it, preferably with the
help and facilitation of an outside brand-positioning expert.

37
 RESEARCH METHODOLOGY

Research Design

The research design is the blueprint for the fulfillment of objectives and answering
questions. It is a master plan specifying the method and procedures for collecting and
analyzing needed information.

Research type:- Descriptive research- descriptive research is used to describe

charactristics of a population or phenomenon being studied. It does not answer questions
about how/when/why the charactristics occurred…. Thus, descriptive research can not be
used as the basis of a casual relationship, where one variable affects another.

Data Collection Methods: The source of data includes primary and secondary data
sources.

Primary data: Primary data has been collected directly from sample respondents through
questionnaire and with the help of interview.

Secondary data: I was collected the secondary data from Standard textbooks,
Newspapers, Magazines and Internet sources.

Research Instrument: Research instrument used for the primary data collection is
Questionnaire.

Sample Design: Probability Sampling.

Sampling Technique: Convenience

Sample Size: 100 Respondents.

Area of Study: Noida

38
Statistical Tool Applied: Percentage Analysis.

Sample size-100 Respondents

Sample target- Customers (Employees)

Data collection by Questionnaire

About the Company:

Our Core Business: The Problem: The Deliverables: Expected Output: Paytm is India's
largest mobile commerce platform. Paytm started by offering mobile recharge and utility
bill payments and today it offers a full marketplace to consumers on its mobile apps and
web. In a short span of time, Paytm has scaled to over 10 million orders a month. Paytm's
mobile wallet is used by more than 10 million users to pay for various services.
Consumer brand of India's leading mobile internet company One97 Communications,
Paytm is head-quartered in Delhi NCR. One97 investors include SAIF Partners, Intel
Capital and SAP Ventures. Paytm today is a market leader in both recharges and mobile
wallets. However, the genesis of the story is interesting where in both cases we have
come back from behind and have differentiated intelligently and marketed innovatively to
reach where we are. In case of recharges, we had several incumbents like Freecharge in
the market. They concentrated in providing as many recharge options on the site and
focussed on collating many recharge and mobile service providers. However we started
looking at what a user really wants. When he comes to our site (or any other site), he is
NOT looking for variety - he is looking for the easiest way to recharge - and all the
options available for recharge. Most people also typically recharge same amounts over
and over again. Our user experience focussed on this simple aspect. We made it dead

39
simple for you to recharge your phone and remembered your last recharge amounts. On a
marketing front, we realised most people searched for Vodafone recharge or Airtel
recharge. We optimised our SEM to target such keyword searches rather than competitors
(which was less than 5% of online recharges). That helped us get a less targeted SEO
term as well as get much more relevant users. In the wallet space, our offering had a
different genesis. We realised a lot of users requested how to keep money so that they can
do repeated recharges without entering bank / cc details over and over again. A closed
wallet license would have sufficed - however, we wanted to extend it to others as well.
Therefore our offering which was driven by an internal need now powers a lot of
transactions across others e.g. Bookymyshow, Zovi etc. Mobile & DTH recharge, Bill
Payments, Bus Tickets, Data card recharge, e-commerce marketplace,

40
 DATA ANALYSIS & INTERPRETATION

I Have you purchased anything online ever?

Fig. 1 Total Purchase Online

NO
35%

YES
65%

The research showed that 65% of the Internet users had shopped online while 35% had
not bought anything. This is mainly because of the changing lifestyle and taste patterns.
As the life is getting more and more fast paced more people are moving on to shop online
mainly because of convenience. This shows that a more Internet users are using it as a
shopping medium and there is a huge potential in this sector but one should not be carried
away by this figures. There could be a possibility that only a small section of the online
shoppers are shopping or only a particular category of good had brought about this huge
number. As a result the entire analysis was done in case of a regular online shopper to
understand the shopping behavior of the online shoppers.

The following question helped to understand who is a regular online shopper among the
65% who had indulged into online shopping.

41
II How frequently did you purchase online?

Fig. 2 Frequency of Online Purchase

80% 74%
70%
60%
50%
40%
30%
20% 12%
9%
10% 5%

0%
Only Once 2-4 times 5-6 times More than 6
times

This helped to understand the purchasing behavior of the online shoppers. It was seen
that 14% of the online shoppers had shopped more than five times and 74% had shopped
2-4 times. The frequency shows the acceptance of Internet as a shopping medium.
Though only a small amount of the online shoppers had purchased more than 6 times but
still there is a huge opportunity in the Internet arena. The 65% of the online shoppers who
had shopped more than once were considered as regular shopper and the entire analysis
was based on these regular shoppers.

42
5.1 The Internet Usage

It is necessary to study the amount of time spend by the regular shoppers on the world
wide web because this would give us clear picture as to understand whether usage and
time spent by the regular online shoppers has an effect on online shopping or not.

Fig. 3 Online Shopping & Internet usage by years

90%
78%
80%
70%
60%
50%
40%
30%
20% 14%
10% 6%
2%
0%
Less 1–3years 3–5years More than
than1year 5years

The diagram shows that shopping has increased with the usage of Internet over the years.
Regular shoppers who have been using Internet for more than one year had shopped to
98% and regular shoppers who have been using Internet for more than five years have
shopped to 78%. Internet is not a new concept for these regular online shoppers and they
have been using it for more than 5 years now. The increased usage over the years has lead
to an increase in shopping, as these regular shoppers are able to make use of the various
e-commerce activities.

43
Fig. 4 Online Shopping & Internet usage by hours a week

40% 36%
35%
28%
30%
25%
20%
20%
15% 12%
10%
4%
5%
0%
0-5 6 - 10 11 - 15 16 - 20 More
hours a hours a hours a hours a than 20
week week week week hours a
week

The research shows that 36% of the online shopping had been done who use Internet for
more than 20 hours a week and 96% of the shopping has been done by regular shoppers
who have been using Internet for more than 5 hours a week. As more the regular online
shopper are using the Internet it is seen that they end up buying more also. This shows
that Internet is becoming an integral part of the daily activity of the regular online
shopper. The regular online shoppers who have been using Internet for more than 20
hours are more comfortable and confident as a result they purchase more online as
compared to who use Internet for less number of hours. The study shows that the growing
usage of Internet has lead to increase in online shopping as seen above. There is a
positive relation between increase usage of Internet and online purchase. The marketers
should capture this enormous growth, which can be brought by the penetration of
broadband and lowering the prices of computers. Thus increase in usage of Internet over
the years and the more time spent has lead to an increase in shopping. But one needs to
know whether online shopping is an integral part of regular shoppers or not this
understood as follows.

44
5.2 The web online activity

The following classifications are done to study the online activities in case of a regular
online shopper.

Fig. 5 Online Activities

10%
32%
Shopping
20% Communication

Finance

24%
14%
Inf ormation
Entertainment
Gathering

The Internet offers four basic services communication (socializing service with peer
group or core group (email) or with new groups of people (chat), information services,
entertainment services and commerce services and shopping. The research shows 32% of
the regular online shoppers use Internet for communication while only 10% uses it for
shopping which shows that communication still forms the major activity among the
regular online shoppers.

45
Fig. 6 Online Activities by Age

70%

60% 18-30 years

50%
31-40 years
40%

30% 41-50 years

20%
above 50
10% years
0%
communication Information Finance Shopping
gathering

This classification further provides an insight that Internet is mainly used as a means of
communication in respect all the age groups of the regular online shoppers. It contributes
to 60% of the major activity among the regular online shoppers who lie between the age
group 18-30 years. It could be seen that shopping as a basic activity on the Internet
contributes to the minimum. Internet as a medium of shopping is maximum used by
regular online shoppers between the age group18-30 years, which is 18% while above 50
years it is used just to 2%. The increase in usage among the 18-30 years is basically due
to high awareness. The marketers should focus mainly on the age group between 18-30,
as they are the main drivers for growth. Thus the research shows that though the regular
shoppers are using the Internet for quiet some time now but shopping still remains a
small part of the major activity

46
Fig. 7 Online Activities by Time

90%

80%

70%

60% Communication

50% Information

40% Entertainment

30% Finance

20% Shopping

10%
0%
0-5 hours 6-10 hours 11-15 16-20 more than
hours hours 20 hours

It is evident that regular online shoppers also spend a major part of their time in
communication unlike the occasional online buyers. In 0-5 hours a week they spend 77%
of their time in communication, which includes email, and chat as the major activity with
shopping which does not seem to exist at all. Information search constitute 20% of the
time. The information search increases as the regular online shoppers tries to figure out
ways to surf the Internet and access the information they require. It is true that more
regular online shoppers use Internet shopping sites to gather information about products
rather than to make a direct purchase.

But it is to be noticed that as the time spend increases communication falls and other
activity picks up like entertainment and finance. One could see from the graph that
between 16-20 hours a week communication falls further but information search also falls
as the regular online shoppers becomes more focused in their information search rather
than wandering aimlessly in the Internet space. They continuously use search engines for
routine information needs. The time spent on entertainment increases marginally to 18%.
As the people spend more time it has been seen that activities like shopping and finance
related needs increases. The regular online shoppers who use the Internet for more than

47
20 hours a week has shown that they have indulged into more shopping i.e.10%. It is true
that as the regular online shoppers spends more time on the Internet there is a possibility
that they would end up buying more as they are ease with the use of internet. Increased
usage of Internet is positively related to the buying behavior on the Internet.

Analysis-

It is true that increase in internet has lead to an increase in the online shopping as 78% of
the online shopping has been done by the regular online shopper who have been using
internet for more than five years and 36% of the online shopping have been done among
the regular shopper who uses the Internet for more than 20 hours a week. Thus increase
in usage of Internet has lead to an increase in online shopping. But shopping still
constitute a small amount of the major activity on the internet as 32% of the regular
online shoppers uses Internet for communication while only 10% uses it for shopping.
Communication still constitutes the major activity on the Internet.

5.3 Demographic Factors

Online behavior is affected by demographics i.e. by gender, education and income.

5.3.1 Hypothesis

1. More male Internet users are frequent online buyers than female Internet users.
2. Regular online buyers are better educated than occasional online buyers.
3. Income is higher in case of a regular online shopper than occasional online buyer.

48
Fig. 8 Online Shopping & Gender

28%
Female

72%
Male

Among the 65% of the online shopping, males (72%)had purchased more as compared to
women (28%). This shows that it is true that more males are shopping online as
compared to women. This is mainly because women still like to feel, see and touch the
product before buying. It was noticed that some of them felt shopping as a reason to go
out with the family and spend time together, which was not possible in case of online
shopping. As more and more Indian women are flocking to Internet there is a possibility
that they might end up in a purchase. Also an increase in the spending power in the hands
of the women might lead to an increase in the online shopping. The research showed that
28% of the women who shopped online fall mostly in the service and executive class
with an income above Rs10,000. The marketers should make sure that they produce the
item keeping in mind the needs of the women population as they still continue to be an
important decision maker when shopping for the family.

49
Fig. 9 Online Shopping & Educational Qualification

3%
8%
Non
Matriculate
Matriculate

54% 35%

Postgraduate Graduate

Educational difference is a significant demographic variable, which shows that regular

shoppers who were better educated made more purchases online. 89% of the shopping
has been done by the regular shopper whose is educated with a graduate or postgraduate
degree. This shows that frequency of purchase is more in case of a higher educated
regular shopper as compared to a online shopping done by a regular online shopper with
matriculate (8%) and non matriculate (3%).

Fig. 10 Online Shopping & Income

50
 40 38

35

30

25 less5000
21
5000-10000
20
10000-25000
14 15
15 above25000
11
10 8
5 5
5 3 2 3
1 1 1 1 1
0
Student Service/Executive Business Others

Income and buying behavior are positively related. It was seen that a regular online
shopper with a higher income had purchased more online as compared to lower income
online shopper. This trend was seen in all segment of the population. It is true that more
the income in the hands of the population they would indulge in shopping. The service
class had done the major purchase in all the various levels of income. It can be seen that
hardly any purchase is done among the regular online shopper whose income lies below
Rs5000.

Analysis-

Thus three hypotheses stated were true in case of the regular online shopper and it can
interpreted that online shopping is effected by demographics like gender, education and
income levels. Among the 65% of the online shopping, males (72%)had purchased as
compared to women (28%). There is a positive relation between education and income of
the online shoppers. 89% of the online shopping was done among the regular shoppers
who were educated with a graduate or postgraduate degree compared to 11% shopping
who were matriculate and non-matriculate. A 60% of the shopping was done by the
regular shopper who had income more than Rs 25,000 than 40% who had income less
than Rs.25,000.

51
5.4 Motivating & Satisfaction Factors

To identify the factors which Internet users choose to buy or not buy online and how
frequently they make such purchases. Analyzing the importance of satisfaction level in
the online purchasing environment.

5.4.1 Hypothesis

Consumers who make frequent online purchases are higher in convenience orientation
than those who purchase occasionally.

Fig. 11 Online Shopping & Motivating Factors

7%

Product 32%
Comparison Convenience

26%

Saves Time

12%

Superior
23%
selection
Price

It is believed that consumers whether online shoppers or non-online shoppers value price
to convenience but the study contrast this popular belief. The study showed that 32% of
the shopping had been done by the regular shopper who think convenience is the main
driving force while 23% of the shopping had been done for whom price was the main
orientation for shopping online. Other motivating forces, which had lead to online
shopping, were saves time (26%), product availability and superior selection (12%), and
product comparison (7%). Convenience here is characterized as ease of purchase, home
delivery and ability to shop 24x7. These factors motivate the regular online shopper to

52
buy over the Internet and regular online shoppers who value convenience are more likely
to buy on the web, as compared to occasional online shoppers. Every connection is a
potential for net shopping. Therefore the companies should attract and retain its regular
online shoppers, as the Internet is a tangled jungle of web sites, which is possible at a
click of a mouse. They should design strategies and develop products keeping in mind the
convenience factors.

Fig. 12 Barriers to Shopping Online

7% 33%
9% Others Privacy &
Unfamiliar
Security

14%

Hassle of

returning

16%
21%
Lack of
Inability to
Customer
touch & feel
Service

The main areas for concern in respect of the regular online shoppers while shopping were
privacy and security (33%). Most of them still preferred the conventional method of
shopping like the touch and the feel factor (21%). They felt that it is possible to see, feel,
touch and try the products before buying in a shopping store as compared to Internet
shopping. Other reasons that concern the regular online shoppers were inability to reach
the customer service (16%), hassle of returning the product (14%), technical foul –ups,
hesitant in purchasing from an unfamiliar source and person and delivery costs. The
marketers should formulate such strategies so that the privacy and security concern can
be taken care off.

53
Fig. 13 Convenience- The Motivating Factor

80%
74%
70%

60%

50% 48%
purchase
40%

30% convenience
27%
20% 20%

10% 12%
9%
5% 5%
0%
Only once 2-4 times More than More than
5 times 6 times

It has been seen that there is a positive correlation between the frequency of purchase and
the convenience factor for buying in the Internet arena. The regular online shopper who
had purchased more than 6 times (9%) for them convenience is the most important
motivating factor (48%)for shopping on the Internet. Convenience has been characterized
as ease of purchase, home delivery and ability to shop 24x7. The online shopper believes
that large amount of information about the product and the ability to compare prices is
available at a click of a mouse thus making the entire shopping experience very
convenient. Thus the marketers to should keep the convenience factor in mind while
providing the goods and services.

5.4.2 Satisfaction Index

It is important to understand the satisfaction level among the regular online shoppers,
which had lead to online shopping. This could be understood by the satisfaction index
and the frequency of purchase among the shoppers.

54
Fig. 14 Satisfaction Index

2%
Highly
12%
Satisfied
Dissatisfied

31%
Neither 55%
Satified nor Satisfied
Dissatisfied

A 55% of the regular online shoppers were satisfied with 12% dissatisfied. An important
thing to be noted is that only 2% of the regular online shoppers were highly satisfied
while 31% of the regular online shoppers were neither satisfied nor dissatisfied. This
shows satisfaction level plays an important role in online shopping with more regular
shoppers falling under the category of satisfied. This shows that they were overall
satisfied by the experience of shopping online. But the companies should take measures
so that the dissatisfied and the neither satisfied nor dissatisfied category of regular online
shoppers could be moved to satisfied or highly satisfied. A note should be taken that only
2% of the regular online shoppers are highly satisfied which shows that there are still
concerns, which poise the regular shoppers from using the Internet frequently as a
shopping medium.

Satisfaction level can also be measured by the frequency with which the online shoppers
purchase online. According to human psychology it is true that frequency of purchase
depends upon the satisfaction level received. According to the figure 2 (already
explained), a 74% of the regular online shopper has purchased 2-4 times and 9% had
purchased more than 6 times indicating that an increase in the confidence level and
accepting the Internet as a shopping medium. The increase in the frequency of shopping
was mainly because they were overall satisfied by the entire shopping experience.

Analysis-

55
It is seen that the main orientation for buying among the regular online shoppers were
convenience (32%), saves time (26%), price (23%), product availability and superior
selection (12%), and product comparison (7%). The hypothesis stated that convenience is
major factor motivating the regular shopper was true as 75% of the regular online
shoppers who have shopped more than 5 times felt it was necessary as compared to 25%
who shopped less than 5 times.

The barriers to online shopping as stated by the regular online shopper were privacy and
security (33%), inability to touch and feel the product (21%), customer service problems
(16%), hassle of returning the product (14%), purchasing from unfamiliar source and
person (9%) and other problems (7%).

Satisfaction level plays an important role in online shopping, as 55% of the regular online
shoppers that are satisfied tend to purchase more. It can also be seen that 74% have
shopped more 2-4 times and 11% had shopped more than 5 times showing that
satisfaction level plays an important role in online shopping.

5.5 Future and growth of Online Shopping

This can be understood by the categories of good bought by the regular online shoppers
presently and the future of the various categories.

56
Fig. 15 Present & future categories of Goods

120%

100%

80%

60%

40%

20%

0%
Books Railway Airline Electronic Gifts Movies
tickets tickets Gadgets tickets

Present Future

It is seen that railway tickets 70% and airline tickets 93% are the most popular categories
among the online shoppers followed by books and electronic gadgets. This is the main
category, which is bringing about online shopping culture among the regular online
shoppers. The companies should bring out innovative ways so that there is a growth in
other categories of goods also. The entire shopping culture among the regular shoppers is
brought mainly by the travel categories followed by electronic gadgets. The graph shows
that online shopping is tend to grow in the coming years as consumers want to buy more
in the future.

Table 1 Future Categories of Goods

Railway tickets 83%

Airline tickets 80%
Electronic Gadgets 50%
Books 43%

57
 Gifts 33%
Movies tickets 30%
Jewellery 23%
Computer Software 20%
Hotel Rooms/Car Rental 20%
Event Tickets 13%
Toys 13%
Infant / Child items 10%
Food / Groceries 7%
Accessories apparel 3%
CD/Videos 3%
Magazines 3%
Home tools and products 3%
Sporting goods 3%

The table I shows that shows that there is a future growth in the electronic gadget and
book categories also apart from railway and airline tickets, which continues to be on the
priority list. There is a growth in these categories because traditionally products like
audio-video, apparel, and computer accessories were purchased through catalogs and
other forms of direct mail but toady online shopping serves a convenient means of
distribution channel. Another reason for the growth in these categories is because of well-
established sites for travel, audio-video (e.g., CD-Now), and computers
(e.g.www.dell.com, www.sonyvaio.com), which lure the consumers to buy these
products. These goods do well because consumers are not bothered much about the touch
and feel factors, which generally drive the shopping in India unlike categories like
apparels and groceries where it still remain an important factor while purchasing. It is

58
difficult to change the set mindset of consumers for certain categories of goods but still
companies should keep innovating and find means and ways to attract more online
shopping.

Analysis-

There is a future growth in online shopping which can be especially seen in the travel
arena with railway 83% and airlines 80%, electronic gadgets (50%)and books (43%).
Gifts also seem to show a growth in the coming years. Thus the marketers should mainly
focus on these growing categories of goods, which would drive the online shopping in the
future.

59
LIMITATIONS

60
 LIMITATIONS

Every study will have its problems and limitations at some point during the project. This
study is no different. The use of a non-probalistic sample in the research was a major
limitation because there was no way to make sure that the sample taken represented the
total population of the Internet users. A non-probability sample lacks the accuracy and
precision that a probability sample might offer. Though this samples provided a better
insight about the online shoppers but there could be a possibility that a respondent may
have done online shopping but is not a regular Internet user. It was seen that some
respondents were biased towards some questions. Another major limitation encountered
doing the research assignment was the issue regarding the time.

Limitation of the study is the selection of the existing studies. Owing to time limitation,
only a few number of journals were searched. This may leave some other prominent
empirical studies out. In addition, owing to the multidisciplinary nature of online
shopping, it would be very interesting to compare IS literature to other disciplines that
study online shopping attitudes and behavior.

61
FINDINGS

62
 FINDINGS

 The findings show that Internet usage has increased over the years and it is leading
to an increase in online shopping and also shows the consumers attitude and
perception towards online shopping. Communication still forms the major activity
among the large number of online shoppers as 32% of regular online shopper use
Internet for communication as compared to shopping (10%).
 Online shopping is affected by demographics as it has been seen that more males
are shopping online as compared women online shoppers and there is a positive
relation between education and income levels with respect to the increased online
shopping behaviour.
 The most important motivating factor, which influenced the online shopping, was
convenience followed by time saving and price. Regular online shoppers
considered convenience as the main motivating factor while buying and were less
price sensitive. But the online marketers should attempt to differentiate their
products or services making the comparison easier. The marketers should bring
out innovative ways so that the consumers can do more online shopping while
taking the full advantage of rich information, easy access and convenience of the
Internet.
 One of the main concerns among the online shoppers was privacy and security.
Another reason that hindered online shopping was the touch factor. Consumers
still preferred the experience they get from traditional stores like feeling the store’s
atmosphere, interacting with a salesperson, and seeking sensory stimulation. This
might hinder the use of certain goods like grocery and apparel, as the touch factor
is the main factor, which drives the shopping for these goods. The future of online
shopping is bright especially in the categories of travel, books, electronic gadgets
and gifts.

63
CONCLUSION

64
 CONCLUSION
 The e-commerce is one of the biggest things that have taken the business by a
storm. It is creating an entire new economy, which has a huge potential and is
fundamentally changing the way businesses are done. It is believed that electronic
commerce will become a huge industry in the coming years and online shopping is
now becoming a significant part of the consumers daily life to meet their never
ending requirements in a convenient way.
 Online shopping is picking up and is becoming a trend. More consumers are
indulging into Internet shopping as seen by the research because of the value
proposition it offers to a customer such as convenience, 24x7 shopping, doorstop
delivery, a broad product selection and the ever-expanding range of unique and
unusual gift ideas as well as increased consumer confidence in shopping on the
internet is increasing. The main motivating factor seen during the research was the
convenience and customer service which drives the people to online shopping as a
result today they are buying airline and railway tickets, books, home appliances,
electronic gadgets, movie tickets, etc by logging on to a web site, than driving up
to a store .As the research suggest that increase in usage of internet increases the
online shopping so there is a need to increase in broadband penetration as it
accelerates the growth of online trade. A huge buyers and sellers across
demographics are shopping online because of the changing lifestyles and shopping
habits but the majority of the users are males. It was seen that despite the immense
possibilities available on the Internet it is mainly used for mailing, chatting and
surfing. E-mail applications still constitute the bulk of net traffic in the country.

65
RECOMMENDATIONS

66
 RECOMMENDATIONS

Online shopping in India is poised for greater acceleration as PC and Internet penetration
grows. It is becoming one of the top Internet activities and there is a huge growth in this
business as more manufacturers and providers are integrating the Internet into their sales
model. But there are many things that need to occur in online shopping to generate higher
revenues and the key to it lies in the hands of the marketers. To make online shopping a
boom following methods can be followed.

 India has a strong research and development (R&D) capability so companies

should innovate rapidly to take care of the security issues. Technology like text to speech
softwares should be innovated to take care of the security concern.

 In India the total ownership of credit cards is small as compared to its population
and there are also hesitant in using it as a mode of online payment therefore alternative
methods of payment like cash on delivery (COD) where the end user pays cash after the
product is delivered and debit cards where the bank accounts are directly debited should
be used. Other technologies like encryption technologies trusted third-party certifications;
digital ID systems and prepaid cards should be used.

 The consumers should be made aware that one of the safety aspect of using credit
cards online is that in case of disputed credit card payments for online transactions the
onus is on the merchants to prove that the transaction actually took place, as online users
don't physically sign a credit slip. As a result online users are protected from fraudulent
use of credit cards.

 There is a growth in the cellular phone market in India, more merchants should
make use of this device allowing the customers to access the Internet and use it as mode
of payment thereby obviating the need for PCs and credit cards.

 It is not only important to pay strong attention to the security issue and create new,
innovative safeguards that protect consumers but the merchants should promote these

67
safeguards to the marketplace and make the prospective consumers aware that the
communications, personal data, credit card accounts, and transaction information can be
protected.

68
SUGGESTIONS

69
 SUGGESTIONS

1. Customer of PAYTM online is well known about the product range provided by the
brand.

2. From the survey it is clear that majority of the customers were young people and the
advertisements, products offered by PAYTM exactly matches the demand of youth. This
makes PTM ahead of its competitors

3. From the survey it is clear that service quality offered by the PAYTM online has a
good influence on customers. So PAYTM should improve its customer service quality to
retain and satisfy customers

4. In order to improve its sales, ad promotion should be taken care, excellent customer
care should be provided and also it should reduce its service time.

5. There is so much percentage of customer are dissatisfied with general behavior of

customer service personnel, so they should be given proper training to improve the
quality of service

6. Often the product range displayed in the ads are not available in stores, so it should be
ensured that product ranges are available as soon as possible. Or the website should
provide a solution like e-tailing.

70
BIBLIOGRAPHY

71
 BIBLIOGRAPHY

Books

1.  Nikhil Pahwa (16 March 2015). ""Most of the marketplaces in this country have

a dormant merchant base" – Vijay Shekhar Sharma". Medianama. Retrieved30

March 2015.
2. Jump up^ "Alibaba enters India's e-commerce space with 25% stake in Paytm

owner One97". India Times. 6 February 2015. Retrieved 30 March 2015.

3. Jump up^ Shrutika Verma (14 January 2015). "Alibaba diverges with SoftBank

with Paytm pick". Live Mint. Retrieved30 March 2015.

4. Jump up^ "Paytm, always bringing the Uber experience to

you".#PaytmKaro (Paytm). November 13, 2014.

5. Jump up^ Jon Russell (13 March 2015). "India’s Top Mobile Wallet App Adds

Support For Payments To Bank Accounts".TechCrunch. Retrieved 30

March 2015.
6. Jump up^ Samidha Sharma (13 March 2015). "Ratan Tata's fifth personal

investment in the digital economy is Paytm".Times of India. Retrieved 30

March 2015.
7. Jump up^ Malini Goyal (15 March 2015). "How startups have successfully

established their own rules of hiring, rewarding & retaining talent". Times of

India. Retrieved 30 March2015.
8. Jump up^ Catherine Shu (5 February 2015). "Alibaba’s Financial Affiliate

Takes 25% Stake In India’s One97, Owner Of Paytm". TechCrunch. Retrieved 30

March 2015.
9. Jump up^ Urvi Malvania (31 July 2015). "Paytm bags 4-yr BCCI title

sponsorship for Rs 203 cr". Business Standard. Retrieved 27 August 2015.

10. Jump up^ http://indianexpress.com/article/sports/cricket/bcci-awards-title-

sponsorship-rights-to-paytm/

72
11. Jump up^ Mohamed Aamir (14 September 2015). "Paytm plans to start India’s

first payments bank". Economic Times.

73
Website
 http://en.wikipedia.org/wiki/online_shopping

 www.iaciis.org/iis/2006_iis/PDFs/Changchit.pdf

 http://www.ibimapublishing.com/journals/CIBIMA/2010/854516/854516.pdf

 www.ptm.com

74
QUESTIONNAIRE

75
 QUESTIONNAIRE

Name: _____________________________

Contact No.: ______________________________

City: ______________________________

Kindly highlight/bold your answers.

1. Do you use Internet?

 Yes ð No

2. How long have you been using Internet?

 Less than 1 year ð 3 – 5 years

ð   1 – 3 years ð More than 5 years

3. On the average, how much time (per week) do you spend in surfing the Web?

ð 0 – 5 hours ð 16 – 20 hours

ð 6 – 10 hours ð More than 20 hours

ð 11 – 15 hours

4. Have you purchased anything online ever?

 Yes ð No

5. Which category (ies) of goods have you bought through Internet?

76
 ð Books ð Railway tickets

ð Electronic Gadgets ð Airline tickets

ð CD/Videos ð Computer Hardware

ð Accessories apparel ð Computer Software

ð Gifts ð Magazines

ð Event Tickets ð Movies tickets

ð Hotel Rooms/Car Rental ð Office Supplies

ð Jewellery ð Food / Groceries

ð Infant / Child items ð Home tools and products

ð Sporting goods ð Health and fitness products

ð Toys ð Any other, specify………………

6. When did u shop for the first time?

ð Last 6 months

ð 6 months- 1year

ð 1-3 year

ð 3-5 year

ð More than 5 year

7. How frequently did you purchase online?

 Only once

77
  2-4 times

 More than 5 times

 More than 6 times

8. Overall, were you satisfied with your experience of online shopping?

 Highly Satisfied

 Satisfied

 Neither satisfied nor dissatisfied

 Dissatisfied

 Highly Dissatisfied

9. Where do you most often access the Internet?

 Home ð Cyber-cafes

 Office / College ð Any other, specify………

10. What are the activities that you use Internet for? (Kindly rank them between 1 to
5,with 1=most used, 2=used to a large extent, 3=used to a good extent, 4=used
sometimes, 5=rarely used)

Communication (E-mail, Instant Messaging, Bulletin Boards, News Groups,

Chat, etc.)

Information Gathering (Research, News, Sports scores, Search for employment,

etc.)

Entertainment (Games, Adult entertainment, Entertainment sites, Sports, Music,

Web page design, etc.)

78
 Finance (Investment portfolio, financial research, online banking, check
stock/fund quotes, trading, etc.)

Shopping (Researching purchases, purchasing, auctions, Selling, Classifieds,

etc.)

11. Which category (ies) of goods are you planning to buy through internet in the near
future?

ð Books ð Railway tickets

ð Electronic Gadgets ð Airline tickets

ð CD/Videos ð Computer Hardware

ð Accessories apparel ð Computer Software

ð Gifts ð Magazines

ð Event Tickets ð Beauty products

ð Movies tickets ð Health and fitness products

ð Hotel Rooms/Car Rental ð Office Supplies

ð Jewellery ð Food / Groceries

ð Apparel gift certificates ð Pharmaceuticals

ð Infant / Child items ð Home tools and products

ð Sporting goods ð Home appliances

ð Toys ð Any other, specify………………

79
12. What is your main motivation for buying through Internet?

 Convenience (ease of purchase, home delivery, ability to shop 24x7) 

Price

 Saves time

 Superior selection/Availability

 Product comparison

 Any other, specify………………

13. What, according to you, are the most important barriers to purchase online?

 I am worried about giving out my credit card number

 I don’t have a credit card

 I don’t like providing personal information

 I don’t want to purchase from someone with whom I am not familiar

 I enjoy going out to do my shopping

 I like to see/touch the product in person, before I buy it

 Internet is too slow / Pages take too long to load

 I am worried about the cost/hassle of returning the product

 Delivery costs are too high

 Prices are too high

 Technical foul-ups prevent transactions from going through

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 I can’t find anything that I want to purchase on the Internet

 I don’t know how but I am uncomfortable about purchasing through Internet

 The process is expensive due to cost of access

 Any other, specify…………

81
 PERSONAL DETAILS

14. Age:

 Below 18 yrs

 18 - 30 yrs

 31 - 40 yrs

 41 – 50 yrs

 Above 50 yrs

15. Educational Background:

 Non-Matriculate

 Matriculate

 Graduate

 Postgraduate

16. Occupation:

 Business/Self Employed

 Service/Executive

 Student

 Any other, specify………………

17. Gender:

82
  Male

 Female

18. Average Monthly Income:

 Less than Rs. 5,000

 Rs. 5,000 – Rs. 10,000

 Rs. 10,000 – Rs. 25,000

 Rs. 25,000 – Rs. 50,000

 Above Rs. 50,000s

83