Consumer Satisfaction Towards Amazon

Final Project Report

SUBMITTED TO
PANJAB UNIVERSITY, CHANDIGARH
INPARTIAL FULFILEMENT OF THE REQUIREMENT FOR THE
DEGREE OF BACHELORS OF BUSINESS ADMINISTRATION

SUBMITTED BY
AASTHA ARORA
(UNIVERSITY ROLL NO.-17044061)
DEPARTMENT OF BUSINESS ADMINISTARTION
DEV SAMAJ COLLEGE FOR WOMEN

Declaration
I, Aastha Arora student of bachelors of business administration session 2019-20 hereby
declare that my work entitled 'consumer satisfaction towards amazon is the outcome of my
genuine efforts done by me under guidance of Dr Anupam, Dr shikha and Mrs.Jasmeet
being submitted at Dev Samaj College for Women sec 45 -B Punjab University Chandigarh
as dissertation in partial fulfillment for the award of the degree of bachelors of business
administration (BBA).
 TO WHOM IT MAY CONCERN

This is to certify that Aastha Arora of class BBA 3 has worked on project entitled
"Consumer Satisfaction Towards Amazon" under my supervision.

Name of the Supervisor: Dr Anupam

Department: Bachelors of Business Administration

 Acknowledgement
No project can thrive in solitude. I would like to take this opportunity to express my
gratitude to all the people who were associated with this project, for their vital inputs and
valuable suggestions which provided necessary impetus to my efforts in consummating this
project.

I wish to express profound gratitude and deep regard to my project guide, Dr Anupam, Dr
Shikha Vohra And Mrs. Jasmeet for her exemplary guidance, valuable feedback and
constant encouragement throughout the duration of the project. Her valuable suggestions
were of immense help throughout my project work. Her perspective criticism kept me
working to make this project in a much better way. Working under her was an extremely
knowledgeable experience for me. I sincerely thank her for her immense cooperation in this
research project.

I would also like to show my gratitude to Mrs. Meena chopra principal Dev Samaj College
for Women, Chandigarh, for sharing his pearls of wisdom during the beginning of this
research.

I would also like to sincerely thank all my friends and colleagues who filled in the
questionnaire for the survey, without which this research would have been incomplete. At
last, I would like to thank my parents for always being there and encouraging me to stay
motivated during the course of this research project in order that I complete it to the best of
my abilities, well in time.
 Table of content
Sr.no. Topic Page No.
1. Introduction 1-2
2. Company profile 3
3. List of Products and services 4
4. Mission and vision statement 5
5. SWOT analysis 6-7
6. Marketing mix 8-10
7. Objective and scope 11
8. Research methodology 12-14
9. Sampling 15
10. Data Analysis and Interpretation 16-31
11. Findings 32
12. Suggestion and recommendation 33
13. Limitation 34
14. Conclusion 35
15. Bibliography 36
16. Questionnaire 37-41
 INTRODUCTION

Jeff Bezos founded Amazon in July 1994. He chose SEATTLE because of technical talent
as Microsoft is located there. In May 1997, the organization went public. The company
began selling music and videos in 1998, at which time it began operations internationally by
acquiring online sellers of books in United Kingdomand Germany. The following year, the
organization also sold video games, consumer electronics, home-improvement items,
software, games, and toys in addition to other items.
In 2002, the corporation started Amazon web services (AWS), which provided data on Web
site popularity, Internet traffic patterns and other statistics for marketers and developers. In
2006, the organization grew its AWS portfolio when Elastic Compute Cloud (EC2), which
rents computer processing power as well as simple storage device (S3), that rents data
storage via the Internet, were made available. That same year, the company started
Fulfilment by Amazon which managed the inventory of individuals and small companies
selling their belongings through the company internet site. In 2012, Amazon bought kiva
systems to automate its inventory-management business, purchasing whole food market
supermarket chain five years later in 2017.

Amazon is an American multinational technology company based in SEATTLE with

750,000 employees. It focuses on e-commerce, cloud computing, digital streaming, and
artificial intelligence. It is considered one of the Big Four tech companies, along with
Google, Apple, and Microsoft. It has been referred to as "one of the most influential
economic and cultural forces in the world.

Amazon is known for its disruption of well-established industries through technological

innovation and mass scale. It is the world's largest online marketplace, Assistant provider,
and cloud computing platform as measured by revenue and market capitalization. Amazon is
the revenue in the world. It is the second States and one of the world’s most valuable
companies.
Amazon was founded by Jeff Bezos in Bellevue, in July 1994. The company initially started
as an online marketplace for books but later expanded to sell electronics, software, video
games, apparel, furniture, food, toys, and jewellery. In 2015, Amazon surpassed Walmart as
the most valuable retailer in the United States by capitalization. In 2017, Amazon acquired
Whole Foods Market for US$13.4 billion, which vastly increased Amazon's presence as a
brick-and-mortar retailer. In 2018, Bezos announced that its two-day delivery service,
Amazon Prime, had surpassed 100 million subscribers worldwide.
Amazon distributes downloads and streaming of video, music, and audiobooks through its
Prime Video, Amazon Music, and Audible subsidiaries. Amazon also has a publishing arm,
Amazon Publishing, a film and television studio, Amazon Studios, and a cloud computing
subsidiary, Amazon Web Services. It produces consumer electronics including Kindlee-
readers, Firetablets, Fire TV, and Echo devices. In addition, Amazon acquisitions include
Ring, Twitch, Whole Foods Market, and IMDb. Among various controversies, the company
has been criticized for technological surveillance overreach, a hyper-competitive and
demanding work culture, tax avoidance, and anti-competitive practices.

Since its conception in 1995, Amazon has outgrown several competitors in its field, and has
gone on to become a market leader, and has around 240 million customer accounts
worldwide. Amazon has used careful investment and acquisition of other smaller companies
to enable itself to stay ahead in its field, and continues to expand its product range, whilst
offering competitive prices to customers, and faster deliveries to those who choose to sign
up for its various account packages.
Company profile

Trade name Amazon

Type Public
Founded July 15 1944
Headquarter Washington
Founder Jeff Bezos
Area served Worldwide
Website Www.amazon.com

Logo
Products and services offered by Amazon
1. Echo and Alexa
2. Fire Tv stick
3. Kindle e-readers and e-books
4. Amazon prime video
5. Amazon prime music
6. Mobile, computers
7. TV, appliances & electronics
8. Men's fashion
9. Women’s fashion
10. Home, kitchen, pets, furniture
11. Grocery and household supplies
12. Beauty, health
13. Sports, fitness, bags, luggage
14. Toys, baby products, kid’s fashion
15. Car, motorbike, industrial
16. Books & audible
17. Music, movies, gaming & software
18. Recharges and bill payments
19. Movies and travel kits
20. Gift cards
21. Art and HANDICRAFTS
 Amazon’s Corporate Mission Statement
Amazon’s mission statement is “We strive to offer our customers the lowest possible
prices, the best available selection, and the utmost convenience.” This corporate mission
promises attractive e-commerce services to satisfy target customers’ needs. The company
focuses on the variables of price, selection, and convenience. In this regard, the following
characteristics are identifiable in Amazon’s corporate mission statement:

1. Lowest prices
2. Best selection
3. Utmost convenience

Amazon’s Corporate Vision Statement

Amazon’s corporate vision is “to be Earth’s most customer-centric company, where
customers can find and discover anything they might want to buy online.” This vision
statement underscores the business organization’s main aim of becoming the best e-
commerce company in the world. In this regard, the following characteristics are identifiable
in Amazon’s corporate vision statement:

1. Global reach
2. Customer-centric approach
3. Widest selection of product
SWOT analysis of Amazon

Strengths
•Market leadership in the global scale
• Strong ecosystem of Products and services
•cost leadership due to efficient cost structure
•customer centricity

Weaknesses
•seasonality of the business
•Easily imitable business model
•losing margins in few areas
•Tax avoidance controversy
Opportunities
•Diversification of e commerce business segment
• increasing focus on own brand products and services
• developing more local sites in International market
•more acquisitions

Threats
•Threats to online security
•heavy competition
•Price competition
Marketing mix of Amazon

Product in the marketing mix of Amazon

Amazon is an international ecommerce company, using connections to the internet from

various gadgets such as phones and tablets, to allow its customers to browse and purchase
products immediately. These products are then delivered to the customer, using delivery
service companies. Amazon has built up a huge product base, and sells almost everything,
including:

 Kindle
 Books
 DVDs
 Mobile phones/tablets
 Gaming consoles and games
 Clothes for men/women and children
 Jewelry
 Gardening equipment

Amazon initially started only with books and it is till date known as the highest book seller
in the world. This is why, Amazon also introduced Kindle. Kindly is an EBook reader from
Amazon and it is the reason that the publishing market is having such a big revolution of
converting hard paper to digital eBooks because of the ease of reading by Kindle. Due to
success of Kindle, Amazon also introduced Kindly fire – its own tablet pc.

Amazon continues to expand its product base, and in July 2014 it entered the smart phone
market, releasing its very own Fire Phone. The phone followed the release a month earlier
of Amazon’s very own set top box system – Amazon Fire TV- which allows streaming from
various channels, as well as supporting speech commands when searching.
Place in the marketing mix of Amazon

In the recent past, sites such as India plaza and all school stuff were forced to close due to
the lack of trust when buying goods online. However, the brand image of Amazon enables it
to have a far and wide presence and the bottom line of the company is enough to enable
massive R&D efforts to secure the website. Amazon has customerservice bases in many of
the countries where it has an online presence, with most bases being located in the different
states of the USA. Amazon employees are friendly and relaxed.

Promotion in the marketing mix of Amazon

While Amazon has broadcast television commercials, these are mostly in the American
market. Amazon uses mainly web based advertising, and they make some use of billboard
and smaller methods of advertising. Amazon also uses advertising networks online so that
whenever you check something on amazon, you will see an ad for the same thing
somewhere else on some other website. Search engine marketing and getting the company’s
name high up the search engine’s results is also a smart promotional strategy by Amazon.
The founder of Amazon had this in mind when creating the company, deciding that it should
start with an ‘a’.

In India, Amazon can be seen to rely on the best source of promotion there is – word of
mouth. People telling others about the site, or mentioning it in a positive way is a sure way
to have a new future customer. However, there are several print media ads to make their
presence felt to the people. However, much more is needed in the promotions department
from Amazon in India because the traffic of Amazon is being taken over fast by Flipkart.
Price in the marketing mix of Amazon

Amazon is competitive with its prices, and has little ways of staying ahead of its market
contemporaries. For example, if you are looking to buy a book, Amazon offers you a new
copy, or a used copy as well, complete with pricing and condition. Another initiative is to
pay to have a premium account, ensuring faster deliveries. Amazon can also keep their
prices competitive due to their use of staff. Minimum numbers – but well trained – ensure
that consumers benefit from the lack of overheads, and the result is shown in the prices
online.

As more and more people can access broadband connections in India and get online, the
competition for the likes of Amazon.com will toughen. Amazon’s quiet entry into India has
seen some growth so far due to its brand image, and it will be looking to keep its prices as
low as possible to capture a slice of the growing market place. It faces tough competition
from the likes of eBay, flip kart and Snapdeal.
Objective of study

1. To know the consumer perception about Amazon online shopping.

2. To study the satisfaction level of Amazon consumer based on Respondents response.

3. To evaluate and find out the factors that influence consumer complenacy.

4. To understand the consumer awareness about Amazon.

Scope of study

The study covers the quality of the services provided by Amazon and its impact on
consumer. It also covers study on factors that accommodate and enhance the satisfaction
feeling of the consumers of Amazon.
Research Methodology

Research Methodology is the most important criteria to decide before the actual research
process starts.

It refers to a systematic study

Defining a problem

Formulating a hypothesis

Collecting and analysing data

Deductions and Calculations

Research Design

Research design is the framework of research methods and techniques. An impactful

research design usually creates a minimum bias in data and increases trust in the accuracy of
collected data. A design that produces the least margin of error in experimental research is
generally considered the desired outcome. Proper research design sets the study up for
success. Successful research studies provide insights that are accurate and unbiased. It is
important to create a survey that meets all of the main characteristics of a design. Research
design is a blueprint as that of a house by an architect. The essential elements of the research
design are:

1. Accurate purpose statement

2. Techniques to be implemented for collecting and analysing research
3. The method applied for analysing collected details
4. Type of research methodology
5. Probable objections for research
6. Settings for the research study
7. Timeline
8. Measurement of analysis

There are various types of Research design which can be classified as:

 Explanatory Research Design.

 Descriptive Research Design.
 Diagnostic Research Design.
 Experimental Research Design.

Out of these all research method most suitable for me was Descriptive research method
because it provides all the opportunities to collect the information which I require to conduct
the research and provide suitable outcome.

Descriptive Research: Descriptive research is “aimed at casting light on current issues or

problems through a process of data collection that enables them to describe the situation
more completely. In this researcher is having no control over variable. Three main purposes
of descriptive studies can be explained as describing, explaining and validating research
findings.
Data collection Method

Data collection is a process of collecting information from all the relevant sources to find
answers to the research problem, test the hypothesis and evaluate the outcomes. Data
collection methods can be divided into two categories:

1.Secondary method of data collection: secondary data is a type of data that has already
been published in books, newspapers, magazines, journals, online portals etc. There is an
abundance of data available in these sources about your research area in business studies,
almost regardless of the nature of the research area.

2. Primary method of data collection: primary data is a term for data collected at source.
This type of information is obtained directly from first hand sources by means of surveys,
observations and experimentation and not subjected to any processing or manipulation.

In my research I have used primary method of data collection. It was collected through
survey with the help of questionnaire. The questionnaire was filled by the consumers to
know their satisfaction level. Secondary method of data collection was used to gather
information about amazon through published reports.
Sampling technique

Type of sampling

To draw valid conclusions from your results, it is important to carefully decide how to
select a sample that is representative of the group as a whole.

Non probability sampling: In this type of sampling the samples are picked in random
manner. There is no particular target audience. Questionnaire was circulated to everyone
without having any set of demographic constraint or age constraint. It is a less stringent
method.

Convenience sampling: Convenience sampling is a non-probability sampling technique

where samples are selected from the population only because they are conveniently
available. It is the most common non-probability sampling method, because of its speed,
cost-effectiveness, and ease of availability of the sample. In my research questionnaire was
sent to friend’s relatives via mail, messages and other social networking sites.

Sample size: sample size is an important aspect for any statistical study. In this research I
have taken sample size as 50.
Data Analysis and Interpretation
1. Gender:

Interpretation: According to the above analysis it is concluded that out of 50, 18% of the
respondents are male and 82% are female.
 2. Age:

Interpretation: According to the above analysis it is concluded that out of 50, 46%
respondents are between age group 20-30, 44% belong to 15-20 age group, 4% belong to
10-15 age group and 6%belong to 30 and above.
 3. Have you ever done online shopping from Amazon?

Interpretation: As per the above analysis it is concluded that out of 50, 94% of consumers
have shopped from Amazon, 6% have not. Most of the consumers have done shopping from
Amazon.
4. How often do you shop online from Amazon?

Interpretation: According to above analysis it is concluded than out of 49 consumers,

38.8% consumers buy once in a month, 30.6% buy once in three months, 20.4% once
in six months and 10.2% once in a year. Most of them buy once in a month.
5. From where did you come to know about Amazon?
 Interpretation: From the above analysis it is concluded that out of 48 responses 30
people got to know from internet, 19 from family and friends, 14 from television and
4 from newspaper. Thus, internet is the main source.

6. What do you prefer buying from Amazon?

 Interpretation: As per the above analysis most of the people prefer busying clothes,
electronics and beauty products. Also they buy furniture, grocery, shoes, gift items
etc.

7. What are the main reasons you prefer buying from amazon?
 Interpretation: According to the above analysis it is concluded that consumers prefer
buying from amazon mainly because of its good quality and fast delivery.

8. How much do you spend shopping on Amazon?

 Interpretation: According to the above analysis it can be concluded that out of 49
responses 36.7% consumers spend an amount of 500-100, 30.6% between 1000-
2000, 22.4% 2000 and above and 10.2% below 500.

9. What is the mode of payment you prefer the most?

 Interpretation: According to the above analysis it is concluded that most of the
people use cash on delivery as a method of payment. 18.8% people also use Debit
card.

10. What is the uniqueness about Amazon which satisfies you compared to others?
 Interpretation: According to the above analysis it is concluded that out of 49
responses 27 consumers find fast delivery as a unique feature of amazon whereas 24
find quality products, 20 for exchange policy and 16 for discount and offer.

11. Is price the main concern when you shop from Amazon?
Interpretation: According to the above analysis it is concluded that out of 49
responses, 42.9% of the consumers consider this statement as neutral, 36.7% agree,
18.4% strongly agree and a few disagree.
 12. So far you got the product at estimated time of delivery?

Interpretation: According to the above analysis it is concluded that out of 48 responses ,

47.9% consumers agree with this statement, 29.2% strongly agree , 20.8% people consider it
neutral whereas a few disagree with it.
13. Are you satisfied with the quality of product?

Interpretation: According to the above analysis out of 49 responses 61.2% consumers

are satisfied with the quality of the product, few are not satisfied, and 34.7% are not
sure about it.
14. Do you believe that on Amazon portal products are easily available?

Interpretation: According to the above analysis out of 48 responses 91.7% consumers

believe that products are easily available whereas 8.3% believe that they are not
easily available.

15. How would you rate the overall services provided by Amazon?
Interpretation: According to the above analysis it is concluded that out of 49 responses
63.3% people consider overall services as good, 26.5% as excellent and 10.2% as fair.
Overall it can be considered as good.
 16. Will you recommend Amazon to others?

Interpretation: According to the above analysis it is concluded that out of 50

responses 80% find Amazon good and would recommend it to others, whereas a few
won’t.

Findings:
 1. Amazon is a well-known online shopping app.
2. Most of the respondents are age group 20-30.
3. Most of the people have shopped from Amazon.
4. Most of the people came to know about Amazon from internet.
5. Most of the people buy clothes, electronics and beauty and health products.
6. People consider amazon as selling good quality products and gives fast delivery.
7. Most of the people use cash on delivery payment method.
8. Most of the people find it easy to get the products from the portal.
9. More than half of the people consider overall experience as good.

Suggestions and Recommendations:

On the basis of my research I would like to give following suggestions:

1. Availability of products between range groups of 500-2000 should be given special

consideration as most of the consumers fall in this range.
2. It should work considerably in building trust with the consumers by coming up with
better privacy policy as it would encourage them to use more of debit card, credit
card etc.
3. Amazon should work on their time of delivery of products and should expand their
variety compared to flip kart and other sites.
 Limitations:

1.The study is conducted relating to amazon online shopping application, so the result which
I have gathered is applicable only for amazon customers.

2.The response from the respondent maybe biased.

3.Study is confined only to 50 respondents.

4.The major problem was to find out the customers of Amazon as it was based on consumer
satisfaction.
Conclusion:

Earlier people used to have time to visit the stores look at different variety of products and
then buy it. But now the scenario has changed. Online shopping is a vast growing
technology. Amazon is one of the leading companies but it has many competitors as well. If
it properly provides assured safety and security it will be b better in this competitive and
dynamic environment. It needs to work on its discount and offers and increase the variety of
products. By doing so consumers will highly continue to depend to shopping from amazon.
No doubt more than 50% of the consumers have rated their overall services as good and
will recommend it to others.
Bibliography:

https://www.marketing91.com/swot-analysis-of-amazon/

https://www.slideshare.net/AmitSarkar82/consumer-satisfiction-on-
amazon-online-shopping

https://en.wikipedia.org/wiki/Amazon_(company)

https://www.marketing91.com/marketing-mix-amazon
 Questionnaire:

Consumer Satisfaction Towards Amazon

1. Gender

Mark only one oval.

Female
Male
Prefer not to say
2. Age

Mark only one oval.

10-15
15-20
20-30
30 and above

3. Have you ever done online shopping from amazon?

Mark only one oval.

Yes
No
Maybe
4. How often do you shop online from Amazon?

Mark only one oval.

Once in a month
Once in three months
Once in six months
Once in a year

5. From where did you came to know about Amazon?

T ick all that apply.

Friends and family

Television
Internet
Newspaper
Other:

6. What do you prefer buying from Amazon?

Tick all that apply.

Clothing
Furniture
Electronics
grocery
Beauty and health
Other:
7. What are the main reasons you prefer shopping from Amazon?

Tick all that apply.

Less price
Good quality
Fast delivery
Easy Return
Other:

8. How much do you spend shopping on amazon?

Mark only one oval.

Under 500
500-1000

1000-2000

2000 And

Above

9. What is the mode of payment you prefer the most?

Mark only one oval.

Credit card
Debit card
Net banking
Cash on delivery
Other:
10. What is the uniqueness about Amazon which satisfies you compared to others?

Tick all that apply.

Exchange policy
Quality product
Fast delivery
Discount and Offer
Other:

11. Is price the main concern when you shop from Amazon?

Mark only one oval.

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

12. So far you got the product at the estimated time of delivery?

Mark only one oval.

Strongly agree
Agree
Neutral
Disagree
Strongly Disagree
13. Are you satisfied with the quality of the product?

Mark only one oval.

Yes
No
Maybe

14. Do you believe that on Amazon portal Products are easily Available?

Mark only one oval.

Yes

No

15. How would you rate the overall services provided by amazon?

Mark only one oval.

Excellent
Good
Fair
Poor

16. Will you Recommend Amazon to others?

Mark only one oval.

Yes
No
Maybe