Project Proposal

The given datasheet provides information about various apparel brands, discounts, and payment methods. It contains details of the products as well as who bought them for what price and where was the product shipped to.

The objective of the project is to analyse the data and examine COD payments vis-a-vis electronic payments. The report would analyze the payment methods and then study the impact on pricing, demand of the product, revenue, consumer behavior, and branding.

In the e-commerce world, kinds of discounts and the final price paid for the product varies as per the payment method selected. While there are frequent offers from the e-commerce site as well as the bank???s side in case of card payments, CODs are generally deprived of those offers. At times, CODs are priced higher for a specific amount of order. The dataset has all such information about the payment methods and related discounts. The report aims at giving a detailed insight regarding how the demand of the products changes in accordance with what payment mechanism is being used.

According to the given dataset, we can identify the percentage of electronic payments and COD payments for respective brands as following:

##                   COD.f
## Brand              Electronic Payment COD Payment
##   ATHENA                     32.10145    67.89855
##   FABALLEY                   41.68720    58.31280
##   GRITSTONES                 37.40038    62.59962
##   HARPA                      42.95145    57.04855
##   MEIRA                      39.85614    60.14386
##   MISS CHASE                 32.00238    67.99762
##   MONTEIL & MUNERO           36.02997    63.97003
##   MR BUTTON                  37.02830    62.97170
##   THE VANCA                  39.96669    60.03331
##   TSHIRT COMPANY             39.89971    60.10029

Some managerially-relevant research questions that we would need to address are as following:

  1. How does it affect the demand of the product when there is a COD charge compared to when there is no COD charge?

  2. Is COD preferred by the consumers for the products which fall into higher price bracket or lower price bracket?

  3. Does the number of COD payments significantly decrease or increase as compared to electronic payments when there is a COD charge?

  4. How does the number of customers opting for COD payments change with respect to the promotions offered by websites as well as the vendors?

  5. Is the number of customers opting for COD in metros significantly different from that in non-metros?

  6. What is the effect of website promotions as well as vendor promotions on the demand of the product?

  7. Which website discounts are preferred more?

  8. What is the impact on price paid when there is COD against when the payment method is electronic payment?

  9. What is the impact of the payment method on the total revenue?

  10. Which brands are purchased more in case of COD payments?

  11. Is the discount provided same for products in every price category or are premium products less discounted?

  12. What is the impact of promotions on demand, price, revenue, and payment method for selected best seller products?

  13. Is it possible to identify how much revenue is brought in by customers from various locations?

  14. Can we identify the preferred payment methods of customers in various locations?

Why do we think these questions are relevant:

From the e-commerce point of view, it is important to know what kind of promotions work in favour of the business. COD payments add value when there is an extra charge and it also makes the purchase more convenient for some customers. It is important to identify the regions where COD payments are more frequent so that the promotions can be accordingly run to maximise the revenue.

It is important for a manager to identify the regions where a particular type of payment method is more popular than the other and accordingly see how the promotions affect the choice of payment methods. Also, it is vital to know the kind of products for which COD payments are preffered. Generally we believe that higher priced products would have greater number of COD payments. We need to identify if the data says the same.

Following is the summary of datasheet:

##  OrderItemCode         OrderID                  OrderDate    
##  Min.   :47856780   Min.   :27856296   04/10/15 15:39:   28  
##  1st Qu.:48822578   1st Qu.:28418744   04/10/15 20:48:   25  
##  Median :49663205   Median :28918355   04/10/15 12:38:   22  
##  Mean   :49722785   Mean   :28953309   04/10/15 12:52:   21  
##  3rd Qu.:50629792   3rd Qu.:29484854   04/10/15 11:48:   20  
##  Max.   :51238880   Max.   :29857723   04/10/15 12:29:   20  
##                                        (Other)       :45762  
##      Category                  SubCategory                 Brand     
##  Apparels:45898   TOPS               :14605   HARPA           :7271  
##                   DRESSES            : 8869   GRITSTONES      :6901  
##                   POLO-T-SHIRTS      : 3793   FABALLEY        :6899  
##                   ROUND NECK T-SHIRTS: 2937   MONTEIL & MUNERO:6539  
##                   SHIRTS             : 2897   MEIRA           :5422  
##                   CASUAL SHIRTS      : 1882   THE VANCA       :4804  
##                   (Other)            :10915   (Other)         :8062  
##     ProductColor    ProductSize         MRP        FinalTotalPrice 
##  BLACK    :11357   M      :12959   Min.   :  299   Min.   :   0.0  
##  BLUE     : 6048   L      :11087   1st Qu.:  649   1st Qu.: 525.0  
##  RED      : 3570   S      : 9556   Median :  950   Median : 678.0  
##  NAVY BLUE: 3304   XL     : 7350   Mean   : 1015   Mean   : 754.8  
##  WHITE    : 2605   XXL    : 2199   3rd Qu.: 1295   3rd Qu.: 882.0  
##  PINK     : 2461   XS     :  670   Max.   :10999   Max.   :6977.9  
##  (Other)  :16553   (Other): 2077                                   
##    VATPercent      VAT           CODCharge    VendorDiscount  
##  Min.   :5    Min.   :  0.00   Min.   : 0.0   Min.   :   0.0  
##  1st Qu.:5    1st Qu.: 24.95   1st Qu.: 0.0   1st Qu.:   0.0  
##  Median :5    Median : 29.95   Median : 0.0   Median : 110.0  
##  Mean   :5    Mean   : 35.29   Mean   :13.7   Mean   : 225.4  
##  3rd Qu.:5    3rd Qu.: 41.85   3rd Qu.:49.0   3rd Qu.: 400.0  
##  Max.   :5    Max.   :329.95   Max.   :49.0   Max.   :4400.0  
##                                                               
##  WebsiteDiscountCode WebsiteDiscount   HasVendorDiscount
##  NIL    :29871       Min.   :   0.00   Min.   :0.0000   
##  APP05  : 2686       1st Qu.:   0.00   1st Qu.:0.0000   
##  STYLE30: 1699       Median :   0.00   Median :1.0000   
##  WOW30  : 1605       Mean   :  83.81   Mean   :0.5058   
##  SALE30 : 1299       3rd Qu.:  44.95   3rd Qu.:1.0000   
##  RUSH30 : 1144       Max.   :3149.00   Max.   :1.0000   
##  (Other): 7594                                          
##  HasWebsiteDiscount   CustomerID            COD        
##  Min.   :0.0000     Min.   :     197   Min.   :0.0000  
##  1st Qu.:0.0000     1st Qu.: 4427436   1st Qu.:0.0000  
##  Median :0.0000     Median : 8963196   Median :1.0000  
##  Mean   :0.3492     Mean   : 9014567   Mean   :0.6132  
##  3rd Qu.:1.0000     3rd Qu.:14821276   3rd Qu.:1.0000  
##  Max.   :1.0000     Max.   :16007333   Max.   :1.0000  
##                                                        
##             ShippingName      ShippingCity   ShippingState  
##  Divya            :   25   Bangalore: 4904   MH     : 8669  
##  Priyanka         :   25   New Delhi: 4585   KA     : 5762  
##  Pooja            :   23   Mumbai   : 3845   DL     : 5392  
##  jol  shishir vyas:   23   Pune     : 2557   UP     : 3959  
##  Neha             :   21   Gurgaon  : 2004   HR     : 3003  
##  Shital  Shegokar :   21   Hyderabad: 1999   AP     : 2840  
##  (Other)          :45760   (Other)  :26004   (Other):16273  
##  ShippingPincode  ShippingAddressType    BillingCity     BillingState  
##  Min.   :110001   Home  :20537        Bangalore: 4829   MH     : 8668  
##  1st Qu.:201012   Null  :20455        New Delhi: 4707   KA     : 5750  
##  Median :400706   Office: 4906        Mumbai   : 3867   DL     : 5504  
##  Mean   :400189                       Pune     : 2513   UP     : 3962  
##  3rd Qu.:560060                       Hyderabad: 1983   HR     : 2916  
##  Max.   :854301                       Gurgaon  : 1927   AP     : 2864  
##                                       (Other)  :26072   (Other):16234  
##  BillingPincode   BillingAddressType                COD.f      
##  Min.   :110001   Home  :16443       Electronic Payment:17754  
##  1st Qu.:201012   Null  :25571       COD Payment       :28144  
##  Median :400706   Office: 3884                                 
##  Mean   :400234                                                
##  3rd Qu.:560059                                                
##  Max.   :900000                                                
##