EXECUTIVE SUMMARY

The study investigates customer satisfaction towards online shopping at Nykaa, a leading e-
commerce platform specializing in beauty and wellness products in India. With the rapid
growth of online shopping, understanding customer satisfaction is crucial for businesses to
retain customers and enhance their shopping experience. It focused on several key factors that
contribute to customer satisfaction. One of the main areas of analysis was the user-friendliness
of the website. This involved assessing how easy it is for customers to navigate the site, search
for products, and make purchases. The study aimed to identify any potential pain points or
areas for improvement in terms of website design and functionality. Another important aspect
examined was the quality of products offered on Nykaa. Customers' satisfaction with the range
of products available, their authenticity, and their overall quality were assessed. This helps
Nykaa understand if they are meeting customer expectations and delivering products that meet
their needs.

Customer service played a crucial role in the study as well. The responsiveness and
effectiveness of Nykaa's customer service team in handling queries, concerns, and complaints
were evaluated. This aspect is vital to ensure that customers feel supported and valued
throughout their shopping journey. The study also sought to gauge overall satisfaction levels
among Nykaa customers. This involved collecting feedback on various aspects of the shopping
experience, such as the checkout process, delivery speed, and packaging quality. Understanding
overall satisfaction helps Nykaa identify areas of strength and areas that need improvement.

By analyzing these factors, the study aimed to provide Nykaa with valuable insights and
recommendations for enhancing the customer experience. The findings can be used to make
data-driven decisions to improve website usability, product selection, customer service, and
overall satisfaction. It's worth noting that customer satisfaction is a key metric for any online
retailer, as it directly impacts customer loyalty, repeat purchases, and positive word-of-mouth.
Nykaa's focus on studying customer satisfaction demonstrates their commitment to
continuously improving their offerings and ensuring a delightful shopping experience for their
customers.

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 OBJECTIVES OF THE STUDY
1. To measures the factor influence customer satisfaction level the most at Nykaa,

2. To know the accuracy of description & image of the product helpful in customer

buying decision.

3. To study packaging & condition of the product received from Nykaa

4. To know the overall online shopping experience from Nykaa

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3
 INTRODUCTION
Customer satisfaction is a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a key performance indicator
within business and part of the four prospective of balanced score card.

In a competitive market place were businesses compete for customers, customer satisfaction is
seen as a key differentiator and increasingly has become a key element of business strategy
customer satisfaction drives successful private sector business. High performing businesses
have developed principles and strategies for achieving customer satisfaction. This paper
presents a framework or set of ideas for using customer satisfaction principles and strategies to
improve the quality responsiveness, and possibility of public sector privately provided services
invulnerable communities

The framework suggested that resident who live in tough neighbourhoods can be supported
through customer satisfaction strategies to become empowered individuals who informed
perspectives influence decisions about what, how, when, and where services are available to
them.

Customer satisfaction is the customer’s response to the evaluation of the

perceived discrepancy between prior expectation and the actual performance of the product as
perceived after its consumption

DEFINITION

Cocotte, woodruff and Jenkins (1987) define customer satisfaction as "conceptualized as a

feeling developed from an evaluation of the experience."

the timing of satisfaction response is driving consumption. but there is general agreement with
Kotler (2003) that "customer satisfaction is a person's feeling of pleasure or disappointment
resulting from comparing a products perceived performance in relation to his or her
expectation." In short customer satisfaction is "The provision of goods or services which fulfil
the customer expectation in terms of quality and service, in relation to price paid

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IMPORTANCE OF CUSTOMER SATISFACTION

It costs at least 7 times more to source a new customer than it does to retain existing ones
'satisfied' customer tells 5-7 people in a year whilst a dissatisfied customer will tell 14-15
people

1. Companies can boost profits anywhere from 25% to 125% by retaining a mere 5% more of
their exciting customers.

2. Totally satisfied customers were 6 times more likely to use that services and commend it
than ' satisfied' customers.

3. Customers who have a bad experience with you and do not complain are only 37% likely to
still do business with you.

4. Customers who have an opportunity to complain and the complaint is achieved are 95%
likely to still do business with you.

CUSTOMER SATISFACTION MODEL

The customer satisfaction model is a micro level framework it links extended Ps(people &
performance), and reflects the impacts of the traditional Ps(product, price, place and
promotion).

a) Generate customer satisfaction by meeting, or better yet exceeding, customer requirements

and expectation, i.e. delivering superior relative perceived value.

(b) A mass satisfied (and profitable) customer into substantial share of the relevant served
market.

(c) Leveraging the market share into high profitability via scale of economies.

FACTORS OF CUSTOMER SATISFACTION

1. Service of quality

2. reliability of service

3. knowledge of the staff

4. Being kept informed of progress

5. The way service kept its promises

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6. The way the service handled any problem Friendliness of staff

7. How sympathetic staff were to your needs

8. Speed of enquiries

9. Number of time had to contact the service

Ways to measure Customer satisfaction

1.Direct Methods:

Directly contacting customers and getting their valuable feedback is very important.

Following are some of the ways by which customers could be directly tabbed:

a) Getting customer feedback through third party agencies.

b) Direct marketing, in-house call centre, complaint handling department could be treated as
first point of contact for getting customer feedback. These feedbacks are compiled to analyse
customers’ perception.

c) Getting customer feedback through face to face conversation or meeting.

d) Feedback through complaint or appreciation letter.

e) Direct customer feedback through surveys and questionnaires.

2. Indirect Method:

The major drawback of direct methods is that it turns out to be very costly and requires a lot of
pre compiled preparations to implement. For getting the valuable feedbacks the supplier totally
depends on the customer due to which they loses options and chances to take corrective
measure at correct time. Hence there are other following indirect methods of getting feedback
regarding customer satisfaction:

a. Customer Complaints: Customer’s complaints are the issues and problems reported by the
customer to supplier with regards to any specific product or related service. These complaints
can be classified under different segments according to the severity and department. If the
complaints under a particular segment go high in a specific period of time then the performance
of the organization is degrading in that specific area or segment. But if the complaints diminish
in a specific period of time then that means the organization is performing well and customer
satisfaction level is also higher.

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b. Customer Loyalty: It is necessarily required for an organization to interact and
communicate with customers on a regular basis to increase customer loyalty. In these
interactions and communications it is required to learn and determine all individual customer
needs and respond accordingly.

A customer is said to be loyal if he revisits supplier on regular basis for purchases. These loyal
customers are the satisfied ones and hence they are bounded with a relationship with the
supplier. Hence by obtaining the customer loyalty index, suppliers can indirectly measure
customer satisfaction.

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COMPANY PROFILE

8
 COMPANY PROFILE [NAYKAA]

Nykaa is an Indian e-commerce company headquartered in Mumbai. It sells beauty, wellness

and fashion products through its website, mobile app, and over 100 physical stores In 2020, it
became the first Indian unicorn startup headed by a woman.

Nykaa sells products which are manufactured in India as well as internationally. In 2015, the
company expanded from online-only to an omnichannel model and began selling products
apart from beauty. As of 2020, it retails over 2,000 brands and 200,000 products across its
platforms.

HISTORY

In April 2012, Falguni Nayar, a former managing director at Kotak Mahindra Capital Company,
founded Nykaa as an ecommerce portal curating a range of beauty and wellness products. The
brand name Nykaa is derived from the Sanskrit word nayaka, meaning actress or "one in the
spotlight". The website was first launched around Diwali 2012, and was available
commercially in 2013.

In 2015, the company expanded from online-only to an omnichannel model and began selling
fashion products. In 2018, Nykaa launched Nykaa PRO. It is a premium membership program
that provides users special access to professional beauty products and offers on the Nykaa app.
In 2018, the company also launched an online beauty forum called Nykaa Network.

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In March 2020, Nykaa raised ₹100 crore (US$12 million) from Steadview Capital at a valuation
of US$1.2 billion, making it a unicorn startup. This was followed by another tranche of ₹67
crore (US$8.0 million) funding by Steadview in May 2020.

In October 2020, the company launched Nykaa Man, India's first multi-brand ecommerce store
for men's grooming. The company expanded into fashion by launching Nykaa Design Studio,
which was renamed to Nykaa Fashion.

In November 2020, global asset management firm Fidelity invested in the company through a
secondary sale of shares from an existing equity investor.

In December 2020, Nykaa Fashion launched its first store in Delhi, making the fashion business
omnichannel.

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OPEREATIONS & SERVICES

ykaa follows an inventory-based model with warehouses in Mumbai, New Delhi, Pune,
Haryana, Kolkata and Bangalore. In 2020, in addition to its primary ecommerce business, it
has an offline presence via 76 brick-and-mortar stores across the country. It claims to have over
200,000 products across 2,000 brands.

It has three offline store formats called Nykaa Luxe, Nykaa On Trend and Nykaa beauty
Kiosks. The Luxe format features international luxury beauty brands such as Huda Beauty,
MAC, Dior, and Givenchy along with Nykaa Beauty, the in-house collection of beauty
products. The Nykaa On Trend format has products curated by category basis their popularity.
In India, Nykaa is the only retailer that sells international brands like e.l.f, Charlotte Tilbury,
Tonymoly, Becca, Sigma, Limecrime, Dermalogica, and Murad as well as national bestsellers
like Soulflower,Lakme, plum.

HOUSE OF BRAND

In 2015, Nykaa launched its collection of in-house beauty products via Nykaa Cosmetics and
later expanded it across categories of Eyes, Nails, Face, Lips. The Nykaa Naturals portfolio is
a collection of skincare and personal care products. In early 2019, the brand launched its
Wanderlust Bath & Body collection, and later in the year introduced a beauty line with designer
Masaba Gupta, Masaba by Nykaa. The same year, it launched its first celebrity partnership
brand, Kay Beauty, with actress Katrina Kaif.

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RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY
Research is a process of systematic and in –depth study or search for any particular topic,
subject by collection, compilation, presentation and interpretation of relevant details or data.

• Research refers to a search of knowledge.

• It is a scientific and systematic search for pertinent information on a specific topic.

• It is an art of scientific investigation.

• Movement from known to unknown.

• Voyage of discovery.

• It is a systematic method of finding solution to a problem.

DATA COLLECTION METHOD

Secondary Data-

Data was collected from books, magazines, web sites, going through the records of the
organization, etc. It is the data which has been collected by individual or someone else for the
purpose of other than those of our particular research study. Or in other words we can say that
secondary data is the data used previously for the analysis and the results are undertaken for
the next process.

The secondary data has been collected from the following modes:

• Magazines

• Books

• Newspaper

• Data through internet sources

• Websites

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DATA ANALYSIS
&
INTERPRETATION

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❖ FACTOR INFLUENCED CUSTOMER SATIFACTION LEVEL THE MOST

Factor influence Frequency Percentages

Wide range of product selection 45 45%
Competitive pricing 23 23%
Fast & reliable delivery 12 12%
Excellent customer services 20 20%
Total 100 100%

20%

Wide range of product selection

45% Competitive pricing
12% Fast & reliable delivery
Excellent customer services

23%

SOURCES:- https://www.nykaa.com/sp/makeup-sale-page/makeup-sale

Interpretation:

As per above table shows, 45% of customers satisfied with wide range of product selection, &
23% of customers satisfied with competitive pricing, while 12% of customers satisfied with
fast & reliable delivery, rest other 20% of customer satisfied with excellent customer services.

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❖ RATE THE QUALITY OF THE PRODUCT PURCHASED FROM NYKAA.

Options Frequency Percentages

Excellent 30 30%
Good 40 40%
Average 18 18%
Poor 12 12%
Total 100 100%

12%

30%
Excellent customer services
18%
Good
Average
Poor

40%

SOURCE:- https://www.nykaa.com/sp/ultraluxe/nykaa-luxe

Interpretation:

As per above table shows, 30% of customers says excellent quality of the product
purchasedfrom Nykaa & 40% of customers says good quality of the product purchased from
Nykaa, While 18% of customers says average quality of the product purchased from Nykaa,
other rest 12% of customers saya poor quality of the product purchased from Nykaa.

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❖ PRODUCT DESCRIPTIONS & IMAGES ON NYKAA ACCURATE & HELPFUL
IN MAKING CUSTOMER PURCHASE DECISION.

Options Frequency Percentages

Yes, very helpful 55 55%
Yes somewhat helpful 30 30%
Neutral 12 12%
Not at all 3 3%
Total 100 100%

3%
12%

Yes, very helful

Yes somewhat helpful

55% Neutral
30%
Not at all

SOURCE:- https://www.nykaa.com/sp/fragrance-sale-page/fragrance-sale

Interpretation:

As per above table shows, 55% of customers says yes, very helpful product description &
images are accurate & helpful in make buying decision, & 30% of customers says yes,
somewhat, while 12% of customers says neutral, rest other 3% says not at all.

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❖ PACKAGING & CONDITION OF THE PRODUCTS RECEIVED FROM NAYKAA

Options Frequency Percentages

Very Satisfied 42 42%
Satisfied 30 33%
Neutral 15 15%
Dissatisfied 11 11%
Very dissatisfied 4 4%
Total 100 100%

4%
11%
Very Satisfied
41% Satisfied
15%
Neutral
Dissatisfied
Very dissatisfied

29%

SOURCES:- https://www.nykaa.com/sp/wellness-desktop/wellness

Interpretation:

As per above table shows, 42% of customers are very satisfied with packaging & condition of
the products received from Nykaa, & 33% of customers are satisfied with packaging &
condition of the products received from Nykaa, while 15% of customers are neutral with
packaging & condition of the products received from Nykaa,, & 11% of customers are
dissatisfied with packaging & condition of the products received from Nykaa,rest other 4% of
customers are very dissatisfied with packaging & condition of the products received from
Nykaa.

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❖ ANY DELAY IN THE DELIVERY OF NYKAA ORDERS.

Options Frequency Percentages

Yes 32 32%
No 68 68%
Total 100 100%

32%

Yes
No

68%

SOURCE:- https://www.nykaa.com/sp/bath-and-body-sale-page/bath-and-body-sale

Interpretation:

As per above table shows, 32% of the customers says yes delay in the delivery of Nsykaa
orders, while 68% of customer says no delay in the delivery of Nykaa orders.

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❖ CUSTOMER RECOMMEND NYKAA TO FRIENDS & FAMILY MEMBERS.

Options Frequency Percentages

Not likely at all 10 10%
Unlikely 12 12%
Neutral 30 30%
Likely 25 25%
Very likely 23 23%
Total 100 100%

10%
23%
12% Not likely at all
Unlikely
Neutral
Likely
Very likely
25% 30%

SOURCES:https://www.nykaa.com/luxe/makeup/c/1101?ptype=lst&id=1101&root=nav_2&
dir=desc&order=popularity

Interpretation:

As per above table shows, 10% of the customers are no likely at all to recommend Nykaa to
their friends & family members, & 12% of the customers are unlikely to recommend Nykaa to
their friends & family members, while 30% of the customers are no neutral to recommend
Nykaa to their friends & family members, & 25% of the customers are likely at all to
recommend Nykaa to their friends & family members, rest other 23% of the customers are very
likely at all to recommend Nykaa to their friends & family members.

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❖ REPEAT PURCHASE FROM NYKAA.

Options Frequency Percentages

Yes, multiple times 55 55%
Yes, once 30 30%
No, but I intend to in the future 12 12%
No, and I don’t plan to in the future 3 3%
Total 100 100%

3%
12% Yes, multiple times

Yes, once

55% No, but I intend to in the future

30%
No, and I don’t plan to in the
future

SOURCES:- https://www.nykaa.com/sp/appliances/appliances

Interpretation:

As per above table shows, 55% of the customers says yes, multiple times purchase from Nykaa,
& 30% of the customers says yes , once purchase from Nykaa, while 12% of the customers
says no, but I intend to in the future will purchased from Nykaa, rest other 3% of the customers
says No, and I don’t plan to in the future.

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❖ OVERALL ONLINE SHOPPING EXPERIENCE AT NAYKAA.

Options Frequency Percentages

Very satisfied 35 35%
Satisfied 30 30%
Neutral 25 25%
Dissatisfied 8 8%
Very dissatisfied 2 2%
Total 100 100%

8% 2%

Very satisfied
35%
Satisfied
25%
Neutral
Dissatisfied
Very dissatisfied

30%

SOURCE:- https://www.nykaa.com/sp/mom-and-baby-native/mom-and-baby

Interpretation:

As per above table shows, 35% of the customers are very satisfied with online shopping
experience at Nykaa, & 30% of the customers are satisfied with the online shopping experience
at Nykaa, & 25% of the customer are neutral with the online shopping experience at Nykaa,
while 8% of the customers are dissatisfied with the online shopping experience at Nykaa, rest
othe 2% of customers are very dissatisfied with the online shopping experience at Nykaa.

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FINIDINGS

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 FINDINGS
1. Majority 45% of customers satisfied with wide range of product selection.

2. Majority 40% of customers says good quality of the product purchased from Nykaa

3. Majority 55% of customers says yes, very helpful product description & images are

accurate & helpful in make buying decision,

4. Majority 42% of customers are very satisfied with packaging & condition of the

products received from Nykaa,

5. Majority 68% of customer says no delay in the delivery of Nykaa orders.

6. Majority 30% of the customers are no neutral to recommend Nykaa to their friends &

family members,

7. Majority 55% of the customers says yes, multiple times purchase from Nykaa,

8. Majority 35% of the customers are very satisfied with online shopping experience at

Nykaa

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SUGGESTIONS

25
 SUGGESTIONS
1. Impact of customer reviews and rating, explore how customer reviews and ratings on Nykaa

influence the purchasing decisions of other customers. Look into the role of positive and

negative reviews, as well as the overall rating, in shaping customer perceptions.

2. Role of customer service, investigate how the customer service provided by Nykaa affects

customer satisfaction. Analyze factors such as response time, problem resolution, and overall

customer support experience.

3. Factors influencing customer loyalty, Identify the key factors that contribute to customer

loyalty towards Nykaa. This could include aspects like product quality, pricing, customer

service, rewards programs, and overall shopping experience.

4. Website usability, assess how the usability of the Nykaa website impacts customer

satisfaction. Look into factors such as website navigation, search functionality, product

information layout, and checkout process ease.

5. Personalized recommendations, examine the effectiveness of personalized product

recommendations on Nykaa. Analyze how these recommendations influence customer

satisfaction, purchase behavior, and overall customer engagement.

6. Social media marketing, investigate how Nykaa's social media marketing efforts impact

customer engagement and satisfaction. explore the role of social media platforms in building

brand awareness, fostering customer relationships, and driving customer loyalty.

7. Product quality and authenticity, assess the impact of product quality and authenticity on

customer satisfaction at Nykaa. Investigate factors such as product descriptions, customer

reviews, and measures taken by Nykaa to ensure the authenticity of the products they sell.

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CONCLUSION

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 CONCLUSION

The study examined several key factors that influence customer satisfaction on Nykaa, an
online shopping platform. One of the primary findings is that customer reviews and ratings
have a significant impact on purchasing decisions. Positive reviews and high ratings help build
trust among potential customers and encourage them to make purchases. On the other hand,
negative reviews and low ratings can deter customers from buying certain products. Another
crucial aspect that emerged from the study is the role of customer service in shaping customer
satisfaction. The quality of customer service provided by Nykaa plays a vital role in
determining overall customer satisfaction. Factors such as response time, problem resolution,
and the overall customer support experience contribute to customer satisfaction levels.
Customers appreciate prompt and helpful responses from the Nykaa support team, as well as
effective resolution of any issues they may encounter during their shopping experience.

Website usability also emerged as a significant factor influencing customer satisfaction.

Customers value a user-friendly and intuitive website that allows for easy navigation, quick
search functionality, and clear product information. A seamless and hassle-free checkout
process is also crucial for a positive shopping experience. Furthermore, the study highlighted
the importance of social media marketing in fostering customer engagement and satisfaction.
Nykaa's active presence on social media platforms helps build brand awareness, connect with
customers, and create a sense of community. Customers appreciate the engaging content,
promotions, and updates shared by Nykaa on social media.

Lastly, product quality and authenticity were identified as significant factors affecting customer
satisfaction. Customers value accurate product descriptions, reliable customer reviews, and the
assurance of genuine products. Nykaa's efforts to ensure product authenticity contribute to
customer trust and satisfaction.

In conclusion, customer satisfaction on Nykaa is influenced by various factors, including

customer reviews and ratings, customer service, website usability, personalized
recommendations, social media marketing, and product quality and authenticity. By focusing
on these aspects, Nykaa can further enhance the online shopping experience, foster customer
loyalty, and continue to be a trusted destination for beauty and wellness products.

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BILIOGRAPHY
&
WEBLIOGRAPHY

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WEBLIOGRAPHY

www.nykaa.com

www.nykaafashion.com

www.netcorecloud.com

www.econoinstime.com

BOOKS

Marketing Management

- Arun Kumar, N Meenakshi

Research methodology

- C.R. Kothari

Consumer Behaviour

- Dr. Dharmendra Kumar

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