Consumer Trust

Project report on Consumer Trust Flipkart study Consumer Behaviour Submitted to Prof. Neha Gupta Submitted by Ami Vora Roll No 58 Class PGDM Communications FLIPKARTis an Indiane-commercecompany founded by Sachin Bansal and Binny Bansal in 2007, both alumni of the Indian Institute of Technology Delhi. Initi tot onlyyy funded by the Bansals themselves withRs. 400,000, Flipkart has since then raised patron while from venture capital fundsAccel Indiain 2009and Tiger Global (US$10 million in 2010 andUS$20 million in June 2011).Today, as per Alexa traffic rankings, Flipkart is among the top 20 Indian Web sites and has been credit with being Indias largest on tenor booksellerwith over 11 million titles on offer. The cash-on-delivery model adopted by Flipkart has proven to be of great signifi flockce since the credit card and net banking penetration is very low in India. up to now its 30 days replacement offer is something which identification numbers as its USP. FACTORS THAT LEAD TO T HE SUCCESS OF FLIPKART * Customer Service ply dear(p) guest support with quick turn around time for client queries.Provide replacement of fruit in case a customer receives a defective growth. * User Interface Easy to use, idle to browse through the products, add products to wishlist or to a cart, get product reviews and opinions, pre-order products, make payments using dissimilar methods. * Cash/Card On Delivery Demonstrated more confidence in buying products. Flipkart sells 20 products/min and have with more than 60% of the Flipkarts customers use Cash on Delivery and card on delivery methods. This is because of two reasons, champion is many people do not know how to make payments online.And secondly people do not have immense blaspheme in e-commerce in India. * Customer property Has around 15 lakh individual customers and more than 70% customers are repeat customers i. e. they shop respective(a) times each year. The company targets to have a customer base of 1 crore by 2015. * local anesthetic Presence Tie ups with local vendors and courier firms (thereby reducing transportation and storage costs. Owns warehouse in major cities. CONSUMER TRUST For ensuring success, securing assert in your company is essential. Trust is as important to a potential customers purchasing decision as the products you offer him.And an essential element of building that think, with both customers and partners, is the authorization that your e-commerce operation meets the demanding security standards required of organizations handling sensitive financial information. Building a consumer Trust for Flipkart can take place in the following facets * Setting up a Storefront which generates a nose out of dependency among the consumer * Build a commerce friendly Web Host * Securing Information Using SSL * treat Transactions * On time Delivery * Quality of the products * Efficient staff * Return PolicyFollowing are the discordant measures taken my Flipkart to build and ens ure consumer trust. 1. Merchandise site safety and security A safe and rise(p) Web site is the most crucial element to building online trust. Flipkart convey that customers can trust them with their person-to-person information and their secures. Promote the basic security of your site and reinforce that message with a buying act that emphasizes safety and ease. Flipkart has a Worry Free Shopping environment. It clearly states shipping, return and privacy policies as well as security and product guarantees.Customers are most sensitive to trust and security issues as they shanghai down the path to purchase. 2. A professional site speaks volumes Flipkart has invested wisely in professionalism of their site. This includes user-friendly design and sate updates that are accurate and regular, paying attention to load time, avoiding site down time at all costs, updating content often, avoiding typos and broken links. 3. Showcase the Trustworthiness of Your Brand The trustworthiness is also defined by highlighting its distinctive qualities and physical presence.They do this by expliciting brand-value statement, reinforce that brand-value statement by creating a strike out line that customers, over time, will easily associate, and provide easily accessible customer service speech sound numbers. 4. Outside Voices Boost Credibility There is often no better way to build trust in your brand than to allow others to endorse it. Flipkart has a section for reviews for the product and services from trusted sources which act invaluable. 5. Comprehensive Product Content Enhances Trust You will find comprehensive product content and dilate of a limited product once u chose any item.This gives an insight of the minute, technical, and other details of the product before purchase. 6. What You take to Is What You Get Flipkart provides image zoom functionality provide thumbnail images to the shopping cart, etc. to ensure that What You See Is What You Get. 7. Building Quali ty Service One of the most important aspect is also to create trust among the consumers about the quality of the product. Flipkart provides information such as sizes, product availability (in stock), e-mail confirmation, post purchase services, customer service, etc. . Secure Payment options Flipkart promptly provides versatile options for the payment of the desired products. This is done by Cash on delivery, Credit card and debit card purchase, Net banking, etc. One hitting features is also their EMI option with a very minimal amount of overhead. This attracts the consumers and develops a string sense of trust among the consumers as payment is the most sensitive part of the entire consumer buying process. 9. Returns and Guarantee Flipkarts USP is the 30 day returns guarantee process.Though conditions apply to these, but to almost all the products they refund the entire amount of the capital paid if the consumer returns the purchased product due to any reason. Below is a graph de noting monthly traffic to Flipkart and it shows an increase trend for most of the years. Customer trust in a company can play a significant role in determining the customers actions regarding that company. Customer trust (a belief) influences customer intentions. experimental Research has shown that trust increases customer intention to purchase a product from a company as well as customer intention to return to a company.The following image shows the flow on process for Flipkart online shopping. RESULTS OF BUILDING CONSUMER TRUST The most important parameter for measuring the results of the efforts for creating consumer trust is the revenue generated. In about 7 years, Flipkart generated 12billion (US$220million) (FY201112). Flipkart even has a market share of 20-25% in the Indian online market. Last year, it even acquired Lets Buy and thus increased their market share. The graph shown to a higher place also speaks for itself that the number of visitors have been increasing day b y day thus ensuring better gross sales and profitability.ROLE OF ADVERTISING IN BUILDING CONSUMER TRUST Flipkart. comis one such online portal that is synonymous with trust magna cum laude online shopping. Flipkart used various innovative ads where they show kids playing the roles of an adult (with real adult dubbed voices) in a day to day situation to reach their audiences. This creates a sense of trust among the consumers as kids convey truthfulness. This particular advertisement where three generations are portrayed to present the customers skepticism in online shopping hits just the ripe chords to marketFlipkart. comand assure customers of its excellent services.This advertisement focuses on the major concern of the customers i. e. guarantee and how can one make an assessment from an online image. With the witty use of our old custom of arranged marriages where brides got betrothed by scarce looking at the photographs of their husbands, this advertisement mixes a perfect mar keting solution, wrapped up in good humour. By presenting three generations together in an ad,Flipkart. comonce again makes it clear that online shopping is devoid of age barriers andFlipkart. comis targeted to everyone irrespective of age or gender. CONCLUSIONFlipkart is one of the leading players in the online shopping sector in India. It targets all the one-time(a) generations trust towardsFlipkart. comby making the high-tech younger generation doubtful, and boosting the older generations ego by making them make an online purchase in the tech-savvy world. The tag line shopping ka naya address, the new address for shopping, does open doors or rather browsers to online shopping. By various and continuous efforts Flipkart has, no doubt, succeeded at a great level to create consumer trust and its impact is clear and measurable through the results. THANK YOU