A Study On Level Of Customer Satisfaction Towards Amazon ...ijrar.org/papers/IJRAR19L2075.pdf · Student, Marketing Specialization BITM, Sri Balaji University, Pune ABSTRACT Virtual

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IJRAR19L2075 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 557

A Study On Level Of Customer Satisfaction Towards

Amazon In Jamshedpur City

Ms. Prachi Sharma

Student, Marketing Specialization

BITM, Sri Balaji University, Pune

ABSTRACT

Virtual shopping is seen as a rising trend in the marketing structure. In India, it is usually mentioned as computer or

mobile shopping. Over the last few years, it is noticed that the overall percentage of online shoppers has enlarged in

India. The significance of the study is to survey the customer satisfaction towards shopping services provided by

Amazon in Jamshedpur city. The research is established with the objective to find the satisfaction level of customers

towards services provided by Amazon and to find the customer preference towards Amazon over other websites and

to analyse the problems faced by the respondents.

In this research, five factors are considered and they are measured against the satisfaction level of the consumers. The

Amazon website can use the findings of the research to understand the types of online buyers and the factors that

influence their online attitude so that the company can develop such ideas and plans so as to convert their target

buyers to retained buyers.

Keywords: Customer Satisfaction, Online Shopping, Preferences.

1. INTRODUCTION

E-Commerce or be clearly said electronic commerce or internet commerce basically refers to purchase and sale of

products and services with the particular help of internet and transferring of cash and data in order to implement these

transactions. A digital innovation is seen growing at a faster pace. Continuous changes in consumer spending have

replaced the physical stores to click and order stores. E-Commerce has basically transformed the particular way of

doing business in India. The journey of E-commerce is from offline to online However, with the innovations in

smartphones, laptops and computers and high penetration of 3G/4G internet at cheapest rates have amplified this

present ecommerce scenario of India.

The rise of e-commerce boss in the midst 1990’s changed the entire scenario of retail industry. Amazon was named

as ‘CADABRA’ and shortly it was changed to ‘AMAZON’. This name seems to be completely fitting as Amazon is

the largest river in the world and Jeff Bezos was building world’s largest bookstore. But later Amazon became an e-

commerce giant that sells electronics, apparels and accessories, food, furniture and many more.

Beyond online retailing, Amazon had set foot in B2B commerce. Amazon provides business operations such as store

house, packing, transporting and supporting the other companies to take full care of the shoppers from point of sale to

actual products being delivered. Amazon acquired Zappos, a chief footwear and garments forum within the year

2009, and it stands out amid Amazon’s acquisition because it had been company’s first vital expansion into retail

industry beyond books. In 2013, immeasurable customers have registered themselves for Amazon Smile. Amazon

Smile is basically a initiative where 0.5% of the every purchase made via Amazon website is donated to a charity of

the customer’s choice. The contribution is made at no extra cost and therefore the customer is free to choose their

own charitable organizations. In the year 2017, Amazon acquired Whole foods, the huge acquisition in terms of cost

and extensively increased Amazon’s value in retail industry. And within same year Amazon was observed as a fastest

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growing market place in India and the visited site on both desktops and smartphones. Amazon.In shopping app was

the most downloaded shopping app in India.

In addition to the e-commerce, Amazon’s income comes from subscription services, cloud computing services, food

grocery sales and other areas. Amazon makes and sells its own products like Amazon Kindle and Amazon Alexa.

The other products of Amazon include:

Amazon Fresh

Amazon Drive

Fire Tablet

Amazon video

Amazon Prime

Amazon Web Services

Fire TV

Amazon Music

Amazon Wireless

2. LITERATURE REVIEW

should add some offers with the product in every quarter so as to gain more number of customers and then it becomes

easy to retain the existing customers. Amazon should look into delivery of products with better return policy to make

themselves trustworthy before the eyes of the customers.

Amazon is one in all the super successful e-commerce portal in India. The rise of Amazon in the mid 1990’s as

online book store changed the concept of retail industry completely. Amazon is guided by four principles: customer

obsession in place of competitor focus, ardour for innovation, devotion to operational excellence and future thinking.

In this research, I have considered some literature review based on few articles associated with the title of the

observe.

Ashish Bhatt (2014) - “Customer attitude towards online shopping in selected regions of Gujarat"

This research was basically developed to estimate the view point of consumers towards online purchasing.

From overall substantial survey it became observed that respondents had fantastic response closer to online

buying and the good response arises because of the consolation in terms of less time consumption and

problem free purchasing. Age, gender, profession may be taken into consideration as the essential thing for

continually preferring online buying.

Vikash and Vinod Kumar (2017) - “A study on customer perception towards online shopping"

During this research they revealed that the customer have undertaken online shopping with positive mind set

and another truth they discovered that the shoppers are mostly concern towards satisfaction and products

availability. All these factors shows that online shopping presents comfort to customers and therefore the

customers decide upon online buying. They have simply stored the time of going to the market and finally

conclude pronouncing that there's fantastic belief of customers in the direction of shopping online.




Amit Sarkar (2018) - “A study on customer satisfaction with reference to Amazon"

The goal of the studies was to understand the customer satisfaction in the direction of Amazon online

shopping and to seek out the parameter that influences the customer feelings. And they observed out that the

main purpose for preferring Amazon is product availability and fast delivery. Customers are glad with the

easy go back and alternate coverage of Amazon. Majority of the respondents opt for Amazon website cited

them through their circle of relatives and friends.

U.Ashika Nancy and Dr. C.Eugine Franco (2018) - “A study based on customer satisfaction towards

Amazon online purchase in Tirunelveli district"

The research was purely based on descriptive and exploratory studies. The studies has been undertaken to

know the response of the buyers towards Amazon in Tirunelveli district. The secondary goal was to see the

advantage available and problems faced by the shoppers of Amazon and that they got here out with the

outcomes that 57% of the respondents are females who usually opt for Amazon for their every purchase. The

study also reveals that Amazon has increased customer care provider in order to confirm the troubles faced by

the way of respondent. Assured security has to be considered while making a price online.

Dr.C.Vijay Vishnu Kumar and R.Gopinath (2019) – “ A study on customer satisfaction towards

Amazon”

The research aims to investigate the effect of factors towards online shopping experience of Amazon and to

identify the offers, return and exchange policy and type of products sold in Amazon and the study reveals that

Amazon should add some offers with the product in every quarter so as to gain more number of customers

and then it becomes easy to retain the existing customers. Amazon should look into delivery of products with

better return policy to make themselves trustworthy before the eyes of the customers.

2.1. RESEARCH PROBLEM

• Delay in delivery of products is also one of the problem that leads to dissatisfaction of customers.

• Unavailability of products at some locations affects the loyalty of customers.

2.2. RESEARCH OBJECTIVES

• To find satisfaction level of customers towards shopping service provided by Amazon website.

• To find customer preference towards Amazon over other websites especially considering the factors of delay

in delivery and unavailability of product.

2.3. HYPOTHESIS

H1 There is significant relationship between customer satisfaction and shopping service provided by Amazon.

H2:- There is significant relationship between customer satisfaction and delay in delivery of products.

H3:- There is significant relationship between customer satisfaction and unavailability of products.




3. RESEARCH METHODOLOGY

Type of data

The data needed for doing the survey will be collected from respondents of Jamshedpur. The research consists of

both primary and secondary data. Primary data is the data that is collected for the very first time and secondary data

is the data that is already collected by someone and is available on internet.

Source of data

For this study, ‘Survey Method’ is used to collect the primary data. For this purpose, a well-structured questionnaire

is prepared and convenience sampling method is used to get the form filled by the respondents. Secondary data is

collected from internet.

Sampling method

The sample size is fixed at 222 respondents from Jamshedpur city. Convenience sampling was used to get the

questionnaire filled by the respondents.

Software used

For proving the objective and hypothesis, both PASW Statistics 18 and excel is used. PASW Statistics is used to

prove the relationship between various variables.

4. DATA ANALYSIS

Figure 4.1: Gender of the respondents

Interpretation: Out of total responses, 58.1% of respondents are male and 41.9% of respondents are female.

Figure 4.2: Age of the respondents




Interpretation: Out of total responses, 67.6% of the respondents belong to age group of 15 to 25 years, 14.9%

belong to age group of 25 to 35 years, 7.2% belongs to age group of 35 to 45 years, 7.7% of the respondents belongs

to age group of 45 to 55 years and 2.7% of the respondents belongs to the age group of 55 and above.

Figure 4.3:Occupation of respondents

Interpretation: Out of total responses, 65.3% were students, 24.8% belongs to service category, 2.3% were

businessmen, 3.2% were housewife, 0.5% were unemployed and 4.1% does not belong to any of the above category.

Figure 4.4: Mode of awareness for Amazon.In

Interpretation: From the above table it can be interpreted that 39.6% of the respondents came to know about the

website through advertisements, 23.9% heard of Amazon through their family and friends, 23.4% have known

Amazon through search engines i.e. Google, Yahoo, etc. 4.1% are aware of Amazon through promotional mails and

5% through blogs recommendation. 4.1% of the respondents belong to others category.

Figure 4.5: Products mostly purchased




Interpretation: Out of total responses, it is known that 48.2% of the respondents mostly prefer Amazon to buy

electronic items, 26.6% respondents were using this website to buy apparels and accessories, 7.2% purchase kitchen

and home items and only 3.6% buy stationary products. 14.4% of the respondents belong to the category of others.

\ Figure 4.6: Responses related to delay in delivery of products

Interpretation: Out of total responses it is observed that 6.3% of the respondents strongly agree and 29.3% agree

that they have faced issues related to delay in delivery. 4.5% of the respondents strongly disagree and 31.1% disagree

that they have faced any such issue. 28.8% of the respondents have neutral reaction towards such issue.

Figure 4.7: Responses related to unavailability of products

Interpretation: Out of total responses, it is observed that 45.9% of respondents have faced problem related to

unavailability of products to their location, 34.2% of the respondents have not faced any problem related to

unavailability of products.

Figure 4.8: Where do the respondents shift to buy the product




Interpretation: Out of total responses, it is observed that when consumers face issues related to delay in delivery and

unavailability of products, 44% of the respondents shift to other e-commerce sites, 27% shift to retail stores and 19%

shift to shopping malls. 10% of the respondents prefer keep the product for later purchase.

Figure 4.9: Overall experience of the respondents

Interpretation: Out of total respondents, it is seen that 17.6% of the respondents are very much satisfied with the

overall experience of the Amazon, 48.2% of the respondents are satisfied with the Amazon website and only 0.9% of

the respondents does not seem to have good experience in Amazon.

5. HYPOTHESIS TESTING

Hypothesis 1

H0: There is no significant relationship between customer satisfaction and shopping services provided by Amazon.

H1: There is significant relationship between customer satisfaction and shopping services provided by Amazon.

Tools and techniques used – Friedman test and Chi square test

Table 5.1: Friedman Test

Interpretation: From the table of Friedman Test we can conclude good quality is the most influencing factor due to

which respondents prefer Amazon website for shopping because it has the highest value i.e. 3.29 followed by less

price, easy payment and fast delivery and product availability.

Ranks

Mean Rank

Good quality 3.29

Less price 3.14

Variations in product 3.00

Fast delivery 2.95

Product availability 2.63




Table 5.2: Good quality * Overall satisfaction of the respondents

Interpretation: Here the Pearson chi square value is 28.736 and the p value is 0.026 which is less than 0.05 .

Therefore we reject null hypothesis and infer that there is a significant relationship between less price of products and

overall satisfaction of respondents. ( df =16, p<= 0.05)

Table 5.4: Variations in product * Overall satisfaction of the respondents

Interpretation: Here the Pearson chi square value is 27.289 and the p value is 0.038 which is less than 0.05.

Therefore we reject null hypothesis and infer that there is a significant relationship between easy payment of products

and overall satisfaction of respondents. (df=16, p<= 0.05)

Table 5.2: Chi-Square Tests

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 26.641a 16 .046

Likelihood Ratio 25.940 16 .055

Linear-by-Linear Association .320 1 .572

N of Valid Cases 222

a. 12 cells (48.0%) have expected count less than 5. The minimum expected count is .16.

Interpretation: Here the Pearson chi square value is 26.641and the p value is 0.046

which is less than 0.05. Therefore, we reject null hypothesis and infer that there is a

significant relationship between good quality of products and overall satisfaction of

respondents. (df=16, p<= 0.05)

Table 5.3: Less price * Overall satisfaction of the respondents


Value Df

Asymp. Sig. (2-

sided)



Linear-by-Linear Association 1.731 1 .188


a. 13 cells (52.0%) have expected count less than 5. The minimum

expected count is .07.


Value Df

Asymp. Sig. (2-

sided)










Table 5.5: Fast delivery * Overall satisfaction of the respondents


Therefore we reject null hypothesis and infer that there is a significant relationship between fast delivery of products


Table 5.6: Product availability * Overall satisfaction of the respondents


Therefore we reject null hypothesis and infer that there is a significant relationship between availability of products


Interpretation -All the chi square analysis suggest that the significance value is less than 0.05 which means that the

null hypothesis will be rejected and alternate hypothesis will be accepted. Since all the factors have a significant

relationship with the overall satisfaction, we can infer that overall satisfaction is dependent on the independent

factors. Therefore, we conclude that there is significant relationship between customer’s overall satisfaction and

services provided by Amazon.

Hypothesis 2

H0: There is no significant relationship between customer preference and delay in delivery of products.

H1: There is significant relationship between customer preference and delay in delivery of products.

Tools and techniques used- Regression analysis

Table 5.5 Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)







Table 2.10 Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)










Table 5.7: Regression

Interpretation: From the above ANOVA table, we get F (1,220)= 5.710 and the p value is 0.018 which is less than

the level of significance value that is 0.05. Therefore we reject null hypothesis and claim that there is significant

relationship between dependent variable (overall preference) and independent variable (delay in delivery of

products). Thus, we can conclude that delay in delivery of products has an impact on overall preference of the

respondents.

Hypothesis 3

H0: There is no significant relationship between customer preference and unavailability of products.

H1: There is significant relationship between customer preference and unavailability of products.

Tools and techniques used- Cross tabs and Chi square test analysis

5.8. Chi Square test:

Interpretation: From the table of Chi square test, the Chi square value is 10.964 and the significance value is 0.027

which is less than 0.05. Therefore, we reject null hypothesis and claim that there is a significant relationship between

dependent variable(overall preference ) and independent variable (unavailability of products).

6. FINDINGS

1. Through detailed research it is observed that there is not much of a difference in gender for preferring online

shopping over traditional stores.

2. The most frequent users of online shopping are students who belongs to the age group of 15-25 years.

3. Advertisements played a crucial role to attract their respondents towards their website. 39.6% of the

respondents in Jamshedpur city were made aware of this store through advertisements ( TV, Newspapers)

4. 48.6% of the respondents prefer Amazon for purchasing electronic items followed by Apparels and

accessories.

Table 5.7 ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 3.261 1 3.261 5.710 .018a

Residual 125.627 220 .571

Total 128.887 221

a. Predictors: (Constant), Delay in delivery of products

b. Dependent Variable: Overall preference


Value Df Asymp. Sig. (2-sided)



Linear-by-Linear Association .282 1 .595


a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.73.




5. The main reason behind choosing Amazon over other websites is good quality of the products.

6. The services provided by Amazon are good even more scope of improvement is needed for expanding the

customer base.

7. Delay in delivery and unavailability of products to their locations are the primary issues faced by the

respondents of Jamshedpur. 35.6% of customers are seen facing the issue of delay in delivery and 45.9%

dealing with products not being available to their locations.

8. 44.1% of the respondents mostly shift to other e-commerce sites when they find that the product cannot be

delivered to their location.

9. 17.6% of the respondents are very much satisfied and 48.2% of the respondents seems to be satisfied with the

shopping services provided by Amazon and hence Amazon excels in turning their potential customers to

active ones.

7. RECOMMENDATIONS

1. Amazon is one of the super successful e-commerce portals with huge range and variations in products but it

still needs to work in some of the shopping services in order to increase the overall satisfaction of the

respondents.

2. The delivery service provided by Amazon has to be improved especially considering the rural areas.

Appropriate courier services should be adopted keeping in mind the location of the customers.

3. Logistics is one of the main issue due to which there is delay in delivery of products. So a special attention

should be given to logistics and supply chain in order to reduce the delivery time cycle.

4. Amazon should look into the problem of unavailability of products to certain locations due to which the

respondents shift to other e-commerce sites or retail stores to buy the product.

5. Many respondents are aware of Amazon through advertisements, so Amazon should invest more in

advertisements (TV, newspapers) so as to attract the customers to purchase the product.

8. LIMITATIONS

1. Primary data collection is administered through Google forms owing to pandemic situation and it is very

much possible that the respondents might have filled it casually.

2. The study was only limited to Jamshedpur city so the results cannot be generalized to other parts of the

country.

9. CONCLUSION

The thorough study of the research is built on customer satisfaction analysis which serves a great plan concerning

consumer understanding when they go for online shopping. The overall brand value of Amazon seems to be very

high. Through the research carried out, it is very much clear that the people of Jamshedpur had a good experience in

Amazon and they seems to be very much satisfied with the services provided by Amazon. Respondents prefer

Amazon over other websites because of many reasons but the main reason behind is that they provide good quality

products at less price. Moreover it is observed that respondents basically faced issues related to delay in delivery and

unavailability of products to their locations due to which respondents shift to other e-commerce sites or retail stores

for the purchase. Amazon should consider these primary issues very seriously and should try to resolve them which

will actually help in generating stronger customer base and more revenue.




10. REFERENCES

Ashish Bhatt (2014) – “Customer attitude towards online shopping in selected regions of Gujarat”

https://www.google.com/url?sa=t&source=web&rct=j&url=http://jmm-net.com/journals/jmm/Vol_2_No_2_June_2014/2.pdf&ved=2ahUKEwj514HH4OLpAhWJV30KHR6tAK8QFjABegQICxAG&usg=AOvVaw1yZDC1oMdNmUGKZnQfpMT8 Vikas and Vinod Kumar(2017) – “A study on customer perception towards online shopping”

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.iosrjournals.org/iosr-jbm/papers/Vol19-

issue8/Version-

1/D1908013235.pdf&ved=2ahUKEwiDqsXq4uLpAhWqyjgGHUyHBJcQFjAAegQIAxAB&usg=AOvVaw19M8bNCW9NL

ORbaquJzCBtU.

Ashika Nancy (2018) – “ A study based on customer satisfaction towards Amazon online purchase in Tirunelveli

District”

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.jetir.org/papers/JETIRZ006094.pdf&ved=2a

hUKEwj8yb6WhePpAhWtxjgGHfAwAG0QFjACegQIAhAB&usg=AOvVaw1R0rAZ8-a-oyloxJntRq11

Vijay and Gopinath(2019) – “A study on customer satisfaction towards Amazon”

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.jetir.org/papers/JETIRZ006094.pdf&ved=2a

hUKEwig8b6V4eLpAhUDb30KHQiMBkoQFjAAegQIARAB&usg=AOvVaw1R0rAZ8-a-oyloxJntRq11.

Amit Sarkar(2018) – “A study on customer satisfaction with reference to Amazon.”

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


https://www.google.com/url?sa=t&source=web&rct=j&url=http://jmm-net.com/journals/jmm/Vol_2_No_2_June_2014/2.pdf&ved=2ahUKEwj514HH4OLpAhWJV30KHR6tAK8QFjABegQICxAG&usg=AOvVaw1yZDC1oMdNmUGKZnQfpMT8



https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.iosrjournals.org/iosr-jbm/papers/Vol19-issue8/Version-1/D1908013235.pdf&ved=2ahUKEwiDqsXq4uLpAhWqyjgGHUyHBJcQFjAAegQIAxAB&usg=AOvVaw19M8bNCW9NLORbaquJzCBtU




https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.jetir.org/papers/JETIRZ006094.pdf&ved=2ahUKEwj8yb6WhePpAhWtxjgGHfAwAG0QFjACegQIAhAB&usg=AOvVaw1R0rAZ8-a-oyloxJntRq11

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.jetir.org/papers/JETIRZ006094.pdf&ved=2ahUKEwj8yb6WhePpAhWtxjgGHfAwAG0QFjACegQIAhAB&usg=AOvVaw1R0rAZ8-a-oyloxJntRq11

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.jetir.org/papers/JETIRZ006094.pdf&ved=2ahUKEwig8b6V4eLpAhUDb30KHQiMBkoQFjAAegQIARAB&usg=AOvVaw1R0rAZ8-a-oyloxJntRq11

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.jetir.org/papers/JETIRZ006094.pdf&ved=2ahUKEwig8b6V4eLpAhUDb30KHQiMBkoQFjAAegQIARAB&usg=AOvVaw1R0rAZ8-a-oyloxJntRq11

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

Documents

A Study On Level Of Customer Satisfaction Towards Amazon ...ijrar.org/papers/IJRAR19L2075.pdf · Student, Marketing Specialization BITM, Sri Balaji University, Pune ABSTRACT Virtual