Professional Documents
Culture Documents
By
Submitted
In fulfillment of the requirement for the degree
DECLARATION
I hereby declare that the project report titled A Study on Consumer Perception Towards
Online Grocery Store, under the guidance of Prof: Debjani Bhattacharyais my work
submitted in partial fulfillment of the requirement for the Degree of MASTERS IN
INTERNATIONAL
MANAGEMENT
from
INSTITU
ADMINISTRATION
DES
ENTERPRISES, Poitiers and not submitted for the award of any degree, diploma, fellowship or
any similar titles or prizes
Date: 11/03/2013
Signature:
This
is
to
certify
that
Dissertation
Report
on
Signature:
ACKNOWLEDGEMENT
This project proved as an excellent opportunity for me to apply the concepts learnt in the
course of my program at the institute.
I would like to express my sincere gratitude and thanks to my supervisor and mentor, Prof. for
guiding and providing complete knowledge about the subject briefing about market and risk
calculations
Finally, I would like to thank all those who were directly or indirectly related to this project.
Signature
Date
Executive Summary
Internet and Information technology have made tremendous contributions for business transformation
witnessed nowadays all over the world. This has given birth to E commerce which encompasses several
pre purchase and post purchase activities leading to exchange of products or service or information over
electronic systems such as the internet and the other Telecommunication networks.
Analysing the competitive advantage of E-Commerce it is observed that E-Commerce enables simpler,
faster and efficient business transactions. For developing country like India, E-Commerce offer
considerable opportunity for growth.
E-commerce leads to a boon for the current economic downturn. As Indias e-commerce market is worth
about Rs 50,000 crores in 2011. About 80% of this is travel related (airline tickets, railway tickets, hotel
bookings, online mobile recharge etc.).
Online retailing comprises about 15%. India has close to 10 million online shoppers and is growing at an
estimated 40-45% per annum.The rapid growth of e-commerce in India is being driven by greater
customer choice and improved convenience.
The project was undertaken under the supervision of Nirala Imex Inc who currently has their business
operation in Taiwanese market in selling of Indian grocery items to the local retailers & wholesaler in the
Taiwanese market.
The company has proposed a plan to launch an online grocery store in the Indian market for which the
project was undertaken was to determine whether online grocery shopping will be beneficial to the user
with respect to questionnaire which will be analysed in three parts.
The project will first study the attitude of customers towards online shopping, also determining the factors
which influence the consumer to purchase goods and service.
The second half of the project will depict the attributes of online shopping influencing the purchase
decision by the respondent. It will also determine the issues regarding the online shopping.
The third part of the project determines the purchase decision with respect to grocery. It will determine the
place preference of grocery shopping with respect to price, quality, variety, proximity and offers/
discounts. The project will also recommend the business operational plan which works with contracting
dealership with the local kirana stores.
Contents
Executive Summary.......................................................................................................... 5
List of Abbreviations......................................................................................................... 9
Introduction.................................................................................................................... 10
1.1 What is e-commerce?............................................................................................... 10
1.2 Purpose of Study....................................................................................................... 10
1.3 Existing Issues............................................................................................................ 2
1.4 Outline of the Study.................................................................................................... 2
1.5 Organization of report................................................................................................. 3
Literature Review.............................................................................................................. 4
2.1 Understanding use of e-commerce.............................................................................4
2.2 Models of E-commerce................................................................................................ 4
2.3 Overview Business-to-consumer (B2C).......................................................................6
2.3.1 A Consumer Perspective of E-Service Quality.......................................................7
2.3.2 B2C E-Commerce Web Site Quality.......................................................................7
2.3.3 Customer Expectations and Service Quality Dimensions Consistency..................7
2.4 Online Shopping In India............................................................................................. 8
2.5 Online Grocery Shopping............................................................................................ 9
2.5 Indian Players in Online Grocery Shopping...............................................................11
Research Plan................................................................................................................. 14
3.1. Research Objectives................................................................................................. 14
3.2 Research Scope......................................................................................................... 14
3.3 Research Design and Methodology...........................................................................14
3.4 Sampling................................................................................................................... 14
3.5 Questionnaire Design................................................................................................ 15
Analysis and Findings...................................................................................................... 17
4.1 Demographic observations....................................................................................... 17
4.2 Questionnaire Analysis.............................................................................................. 21
Chapter 5........................................................................................................................ 33
CONCLUSION................................................................................................................... 33
5.1 Summary.................................................................................................................. 33
5.2 Limitations................................................................................................................ 33
List of Figures
Figure 1: Gender Distribution.......................................................................................... 18
Figure 2: Age distribution of sample............................................................................... 19
Figure 3: Occupation of sample....................................................................................... 20
Figure 4: Average Annual Income of sample...................................................................21
Figure 5 : Popularity of online items................................................................................ 22
Figure 6: amount of money spent on online shopping....................................................23
Figure 7: Need of shopping online..................................................................................24
Figure 8: Features of websites attracting users...............................................................25
Figure 9: Features effecting the most satisfaction..........................................................26
Figure 10: Issues considered while shopping online.......................................................28
Figure 11: Shops preferred for grocery items..................................................................29
Figure 12: Preference to buy grocery online..................................................................30
Figure13: Opinion on buyng grocery online....................................................................31
Figure 14 : Parameters beneficial for shopping online....................................................32
List of Tables
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
1: Gender Distribution........................................................................................... 18
2: Age Distribution for sample...............................................................................19
3: Occupation of sample........................................................................................ 20
4 : Average Annual Income of sample..................................................................21
5: Popular Items online........................................................................................ 22
6: amount of money spent on online shopping.....................................................23
7 :Need of shopping online.................................................................................... 24
8: Features of websites attracting users................................................................25
9: Features effecting the satisfaction most...........................................................26
10: Issues considered while shopping online........................................................28
11: Shops preferred for grocery items...................................................................29
12: Preference to buy grocery online....................................................................30
13: Opinion on buyng grocery online.....................................................................31
14: Parameters beneficial for shopping online......................................................32
15: Correlation of factors with attitude of online users..........................................33
16 : Regression table............................................................................................. 34
List of Abbreviations
Abbreviation
Description
Chapter 1
Introduction
1.1 What is e-commerce?
Information communication technology and the Internet have made contributions in changing the concept of
business. There is a paradigm shift of business model witnessed today all over the world. The proliferation of
internet has given birth to E-business and subsequently e-commerce. While e-commerce is confined to a
transaction, e-business encompasses several pre purchase and post purchase activities leading to the exchange
of products or service or information over electronic systems such as the internet and the other electronic mode
including telecommunication networks.
Analyzing the competitive advantage of e-commerce it is observed that e-commerce enables simpler, faster and
efficient business transactions. It helps in developing low-cost leadership in existing markets and introduces
product differentiation and mass customization. For a developing country like India, e-commerce offer
considerable opportunity for growth.
E-commerce has entered every section of business and influenced the retail sector in a big way. The
proliferation of internet in remote corners of developed as well as developing countries have proved to be
conducive for a steady growth of online market and commerce. The unserved and underserved sections of the
society have been privileged to get access to a broader choice of commodities and service.
The US market, by comparison, is expected to reach a value of US$13. 55bn, which represents an increase of
almost 75% compared with levels in 2009, the report said. Although the market is forecast to continue to
experience double-digit growth rates in the region of 11-12% per year, its share of the US retail grocery market
is unlikely to rise above 2% during this time, the report claimed. Much of the projected growth within the US
market is expected to come from the anticipated spread of broadband access across the country. The online
market may also benefit from the increasing tendency of shoppers to research products prior to purchase.
Indias e-commerce market is worth about Rs 50,000 crores in 2012 about 80% of this is travel related (airline
tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online retailing comprises about 15%.
India has close to 10 million online shoppers and is growing at an estimated 40-45% per annum. The rapid
growth of e-commerce in India is being driven by greater customer choice and improved convenience.
The company has proposed a plan to launch an online grocery store in the Indian market for which the project
was undertaken to determine whether online grocery shopping will be beneficial to the user with respect to a
questionnaire which will be analyzed in three parts. The project had the following objectives:
(1)
(2)
(3)
(4)
The project will also recommend the business operational plan which works with contracting dealership with
the local Kirana stores.
Chapter 2
Literature Review
Journal of Database Marketing & Customer Strategy Management; Dec2012, Vol. 19 Issue 4, p311-320, 10p
Online shopping continues to attract investment from retailers. Online shopping websites offer discounts and
promotions to attract online shoppers. Online retailing is in the nascent stages of growth in India. The research
examines the influence of deal proneness on Indian consumers' online shopping behavior. The results indicate
that Indian consumers are not influenced by deals, offers or other promotional tools being used by online
retailers. Promotions may not be necessary viewed by consumers as an important attribute while purchasing
products or services online. The instrumental aspects of online shopping websites need to be strengthened to
motivate consumers to shop online.
E-commerce: A boon for the current economic downturn
First Data Corporation and ICICI Merchant Services, has laid down some facts that e-commerce market in
India had clocked close to Rs 50,000 cores by the end of 2011.
Even though there are less than 10 million internet users who are actually engaging in e-commerce activities,
there are about 150 million internet users in India or around 75 million households that are ready for ecommerce.
With entry and operational costs being comparatively low than the other countries like US, the second half of
2011 and the beginning of the current calendar have seen the launch of a good number of new e-commerce
sites spanning across a variety of businesses womens fashion, mens fashion, shoes, followed by accessories,
groceries, sports, toys, home furnishings, jewellery, automotive, bicycles, electronics and electrical equipment
etc.
Key drivers for success for e-commerce
Reduction in operational cost as the entire business can be moved online, the need for physical stores has
become obsolete. Less infrastructural investment and associated labour costs drives up the profit margin.
It is far easier and quicker to compare prices of goods online, equipping the customer with the information to
decide the right price or terms for themselves. With services like COD, customers can trust the process of
going online and purchasing.
Market penetration also becomes far more achievable with e-commerce; it is possible for a merchant in
Mumbai to extend his reach to north-eastern cities or even rural villages that are now connected by the online
network.
E-commerce facilitates shopping anytime, anywhere and for almost anything desired. Busy consumers prefer
this to the restrictions of when a mall/shop is open and the need to physically travel to a shop. Online business
takes shopping a step further by taking itself to the customer creating conveniences of shopping anywhere and
at anytime.
In India, with the increasing propensity of social media, businesses have now begun to engage their customers
on social networking portals such as Facebook. These are likely to be rapidly developing marketing channels
for the future.
According to an India online landscape study (Juxt, 2010), the number of active Internet users in India stands
at 65 million, of which 17 million are online shoppers, indicating a growth of 70% from the previous year. The
statistics alone are enough to denote the potential of e-commerce in India. However, as the online market
becomes crowded with players, businesses need to have an edge in terms of customer satisfaction to gain a
larger market share. With the above-mentioned objective in mind, a primary survey of online shoppers was
conducted in Ahmedabad and consumer perceptions were analyzed using factor analysis and Analysis of
Variance (ANOVA) test. The paper has found that ease/attractiveness of website, service quality of website and
website security are the three dominant factors which influence consumer perceptions regarding
their online purchasing experiences. Hence, businesses which focus on these three factors can attract more
clicks. Also, the paper has proved that these factors are related to the various types of consumers classified as
trial, occasional, frequent and regular (based on their frequency of purchase). The authors have found that
regular buyers are most influenced by ease/attractiveness of website and service quality of website, while
occasional buyers value website security more than other categories of consumers.
This study introduces two knowledge-related constructs (i.e., consumer competency and product knowledge)
into online purchasing expenditures and then analyses variables (i.e., convenience, trust, and privacy) that have
been discussed in existing literature in order to investigate how knowledge plays out in the online purchasing
context. The findings, derived from the responses of 124 survey participants, show that consumer competency
is the focal element of online expenditures. While convenient service is still one of the most important factors,
trust and privacy do not directly impact online expenditures. It is interpreted that competent consumers, who
are already determined to purchase something online, are able to locate trustworthy sites and make purchases
from those sites; consequently, these issues that are traditionally considered important do not necessarily
dissuade consumers' online expenditures, but may affect individual web sites. This study shows that
consumers' knowledge about technology and the Web are the main determining factors for online purchasing
expenditures.
Get Inside the Lives of Your Customers.
Harvard Business Review; May2001, Vol. 79 Issue 5, p80-89, 10p, 1 Diagram, 1 Chart, 1 Cartoon or Caricature
An Article by Seybold, Patricia B. :Many companies have become adept at the art of customer
relationship management. They've collected mountains of data on preferences and behavior, divided buyers
into ever-finer segments, and refined their products, services, and marketing pitches. But all too often those
efforts are too narrow--they concentrate only on the points where the customer comes into contact with the
company. Few businesses have bothered to look at what the author calls the customer scenario--the broad
context in which customers select, buy, and use products and services. As a result, consultant Patricia Seybold
maintains, they've routinely missed chances to deepen loyalty and expand sales. In this article, the author
shows how effective three very different companies have been at using customer scenarios as the centerpiece
of their marketing plans. Chip maker National Semiconductor looked beyond the purchasing agents that buy in
bulk to find ways to make it easier for engineers to design National's components into their specifications for
mobile telephones. Each time they do so, it translates into millions of dollars in orders. By developing a
customer scenario that describes how people actually shop for groceries,Tesco learned the importance of
decentralizing its Web shopping site and how the extra costs of decentralization could be outweighed by the
higher profit margins online customers generate. And Buzzsaw.com used customer scenarios as the basis for
its entire business. It has used the Web to create a better way for the dozens of participants in a construction
project to share their drawings and manage their projects. Seybold lays out the steps managers can take to
develop their own customer scenarios. By thinking broadly about the challenges your customers face, she
suggests, you can almost always find ways to make their lives easier--and thus earn their loyalty.
Marketing to mum.
B&T Magazine; 6/10/2011, Vol. 61 Issue 2743, p22-26, 5p, 12 Color Photographs
The article discusses how to influence a grocery-buying mother's preference for a brand when she goes to the
supermarket. It notes that mothers consume a wide range of media with the mainstream media such as
television, magazines and catalogues as the best option. The grocery-buyer mother also goes online to research
products either through investigation and social or word of mouth. It indicates the stages in
influencinggrocery-buyer mother's decision to buy including the awareness stage, the research stage where she
turns to the Internet and packaging.
Warfare in the aisles.
Economist; 4/2/2005, Vol. 375 Issue 8420, Special Section p6-8, 3p, 1 Color Photograph, 1 Graph
The article focuses on competition in the local supermarket. Female supermarket shoppers' interests range
from health, family matters and the environment to politics and social issues, such as the welfare of overseas
workers making some of the products they buy. They also share and discuss the information they acquire,
which is how they become attached to certain brands and products. Consumer-goods companies invest in
brands to convince supermarkets to stock their products and to get shoppers to buy them. To keep in touch
with customers, consumer-goods companies are shifting their spending away from traditional media to other
types of promotion. To make things more complicated, marketeers detect a growing trend towards "crossshopping": the same people buying very expensive and very cheap things at the same time. Some people avoid
supermarkets and buy groceries online. The internet has also enabled suppliers to go direct to the consumer.
To boost sales and negotiating power with supermarkets, consumer-goods companies are concentrating on their
most powerful "Superbrands". Some companies are trying a combination of old and new marketing techniques.
These businesses are difficult to turn into profitable ventures due to the low margins and the logistics
costs involved.
Gaurav Saraf, director of Epiphany Ventures says that, the concept of online grocery shopping faces the
problem of turning their business into profitable ventures as the concept is new in the market which leads to
low margin along with low margin high cost is involved when it comes to logistics. In addition to these
problems the perishable items such as fruits & vegetables have a short shelf life, if these items are not
delivered before the expiry of their shelf life it would could cause wastage and also add up the cost. From the
above comment a conclusion is arrived that these business ventures have a very thin margin when it comes to
business operations.
Quality factorsHow to improve the online shopping experience.
Strategic Direction; 2013, Vol. 29 Issue 1, p27-29, 3p
Purpose This paper aims to review the latest management developments across the globe and pinpoint
practical implications from cutting-edge research and case studies.Design/methodology/approach This
briefing is prepared by an independent writer who adds their own impartial comments and places the articles in
context.Findings The advent of internet shopping in recent decades has radically transformed the retail
landscape. Astute businesses have grasped the opportunities generated by this phenomenon. Some focus
exclusively on web-based activities, whereas others prefer a strategy blending new and conventional
channels. Online markets are advancing towards maturity though. The Less growth potential now exists as a
result. Another likely consequence is heightened competition. And what does all this mean? That company will
find it even tougher to secure custom from the diverse range of shoppers who make purchases online.
Satisfying the needs of customers should always be a priority. Within an increasingly challenging business
environment, it becomes even more critical.Practical implications The paper provides strategic insights and
practical thinking that has influenced some of the world's leading organizations.Originality/value The
briefing saves busy executives and researcher hours of reading time by selecting only the very best, most
pertinent information and presenting it in a condensed and easy-to digest format.
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Zhang and Prybutok(2005) concluded e-service is an emerging and rapidly evolving area as demonstrated
by new technological innovations introduced to improve e-service. Motivated by the growing interest in online
commerce, we focus our research questions on examining the factors that contribute to e-service, the
relationships among these factors and the consumers attitude toward -service. To explore answers to our
research questions, we developed an e-service model. Specifically, our proposed model consists of such
constructs as individual differences, e-service convenience, Web site service quality, risk, e-satisfaction, and
intention. We develop an e-service quality survey instrument and use empirical data to validate the instrument.
The results of our empirical study validate our eight hypotheses. We confirm seven of the eight hypotheses.
One hypothesis that tested individual differences and service convenience was not confirmed. However, we
found that service convenience, Web site service quality, and risk are significant factors affecting consumers
satisfaction level, which in turn affects intention. The findings suggest that managers need to understand econvenience from the consumers perspective. In order to provide better services for users, companies need to
invest in Web site service quality design and evaluation, and at the same time, control the perceived risk
associated with using it.
Cao, Zhang and Seydel examined and integrated four sets of factors that capture e-commerce web site
quality using an IS success model: system quality, information quality, service quality, and attractiveness. A
questionnaire survey was conducted to verify the measures of web site quality. Based on TAM, a framework is
also developed relating web site quality to customers beliefs (perceived usefulness and ease of use), attitudes
(preferences for the site), and intentions (to revisit the site).
Findings A set of instruments of web site quality has been developed and empirically validated by
factor analysis.Research limitations/implications The research is based on a sample of students browsing
several book web sites and they may not sense the web site quality across different B2C commercial web sites
such as music, computer, travel, clothes and flowers. Data in these domains should be collected in any future
research to examine further the measures developed here. Practical implications Guidelines for web interface
design are proposed.
Sachdev and Verma-Service marketers bemoan what they perceive as an unprecedented increase of customer
expectations in many service industries. Customer expectations are on the rise with each competitive advance.
While at most everybody has an intuitive sense of what expectations are, service marketers need a far more
thorough and clear understanding of expectations in order to comprehend the concept of service quality and to
measure and manage it. A literature review suggests that the measurement of service quality is full of
controversy associated with many issues, of which an important few are : the type of expectations customers
hold in the evaluation, important manageable service quality dimensions /attributes that define it in its full
framework and dimensional consistency across the service categories.
not ubiquitous across the length and breadth of the country with large retail chains making up less than 10% of
the market.
E-commerce is helping people in smaller towns in India access quality products and services similar to what
people in the larger cities have access to. Its been forecast that close to 60% of online shoppers would come
from beyond the top eight large cities by the end of this year.
Increasing internet penetration has helped to expand the potential customer pool. Internet penetration is only
about 10% (or about 121 million users) as against about 81% in the US and 36% in China. However this
number continues to rise at a consistent pace because of falling prices for broadband connections.
Indians are also increasingly taking to mobile devices for not only search but shopping as well. The number of
Smartphone users is rapidly increasing in India and with 4G services about to take off its expected to get even
more people going online. There are currently about 900 million mobile subscribers and this number is
expected to touch 1.2 billion by 2015. Of these about 27 million are estimated to be active mobile internet
users. More importantly, 20% users indicated intent to buy products through their mobile phones as against the
current 4% and this number is expected to only increase in the next two to three years.
Innovation is helping e-commerce companies break the inertia for online shopping by offering benefits to
customers not traditionally available in a brick and mortar store. Business models include no question asked
return policies ranging from 7 days to 30 days, free product deliveries and the industry dynamics changing
cash on delivery model. The last innovation has really helped unlock the potential as people can now order
products and pay when they get physical delivery of the product.
This has been a tremendous success because Indians are still reluctant to give their credit/debit card details
online and want to have the psychological comfort that they would actually get the product once payment has
been made. These innovations have led to further innovations downstream as ancillary businesses are
developing to support these initiatives. Some companies have begun to develop support mechanisms for the
entire cash on delivery model and are trying to reach the far flung corners of India, including in the interiors
where traditional logistics companies are still not completely present. The logistics companies are also shoring
up their act and have started to build specific verticals and expertise to address the requirements of eCommerce companies.
Divyan Gupta is the Founder and CEO of Keshiha Services Pvt. Ltd, a company with interests in the internet,
telecom, healthcare, education and advanced technology businesses has stated that, acceptance of online
shopping as a secure shopping mode is has also helped to increase e-commerce uptake.
Currently only about 10 million people do online transactions out of an approximate population of 200 million
credit and debit card holders. However the latest industry report by First Data Corporation and ICICI Merchant
Services indicate that there are about 150 million users that are ready for e-commerce.
More importantly the report indicates that urban Indian consumers are now confident enough to make online
purchases of up to US$500 as against US$40-100 in the recent past. So not only are the numbers of online
shoppers projected to increase but there has been a real increase in the total value being spent online.
The primary benefit of online grocery shopping is convenient. By ordering online, one can quickly search for
the products she needs and order them without having to physically walk through expansive aisles. It also
saves travel expenses and time going to the grocery store. Considering the wide availability of the Internet, it
also means grocery shopping can be done from remote locations or in the middle of doing other tasks. For
instance, using an online grocery store can allow a person to do all her grocery shopping during her lunch
break at work.
It is also very useful for those without a car or who may be physically unable to move around easily, since the
food is delivered right to their doors. The use of online-based grocery stores are increasing in popularity as
more and more people become comfortable with using the Internet to make purchases.
Disadvantages of Online Grocery Shopping
Perhaps the largest disadvantages of shopping online are that it costs extra money, since food must be
delivered, and that the food ordered is not obtained immediately. If someone were making a certain recipe and
discovered he needed an additional ingredient, he would probably not be able to order it online and get it
quickly enough to finish his dish. In the same way, it forces a person to plan his food buying in advance of
when he will need it--if delivery will take a day or two, a person needs to plan to have an extra day or two of
essential foods available before he runs out. Another disadvantage is that online shopping forces the customer
to be home during a certain period to collect the food when it is delivered. Also, online grocery stores will
often only cover specific delivery areas.
a "shopping cart" where a user can add items to a list of things to be ordered, as well as view and edit items
that she is planning to purchase. Finally, this website should have the ability for the user to enter her address
and pay for the order.
Filling the Order and Shipping
The next step is to take the submitted order and use it to collect and deliver the items on the list. In general,
fulfillment of the grocery order needs to be done manually by a stock boy or other employee.
This process can be made easier by having a well-organized room where the products can be easily and
efficiently located. The stock person should also check to make sure that the items placed in the order match
the list that the user created.
Then, once the order has been compiled, the collection of food needs to be placed in a vehicle and delivered to
the customer.
Also, it is important to have the ability to obtain and process payments made by credit card. Also, in order to
encourage repeat customers, it can be helpful to require customers to have a user name, which would allow
information to be stored. This can also help create "suggested" carts of food items they commonly purchase.
BigBasket.com
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Loyalty rate - repeat purchases have increased to 50% from 30% in last 2 months
8,500 registered families
10,000 SKUs (Stock Keeping Units) - target of 35,000 SKUs
Delivery vehicles fitted with GPS
Chapter 3
Research Plan
3.1. Research Objectives
3.4 Sampling
Sample Design:
Size of Sample: The sample size selected for the research is 200 in the area of South Delhi.
Parameters of Interests: The major parameter of interest is the subgroup of
people
Who
online
are
working
professionally
and
web
savvy
having
an
experience
in
2.
House Wifes
3.
College Students
4.
Senior Citizens
2.
3.
4.
Sampling Technique:
Quota Sampling:
Quota sampling is a method for selecting survey participants. In quota sampling, a population is first
segmented into mutually exclusive sub-groups, just as in stratified sampling. Then judgment is used to select
the subjects or units from each segment based on a specified proportion
The questionnaire was administered by focus group consisting of two faculty members, two from online
industry and two users. Questions in the questionnaire have been kept simple so that they are understandable to
all respondents. This was made to keep the survey simple and user friendly. Also technical jargons are avoided
to ensure that there is no confusion for respondents.
Chapter 4
Analysis and Findings
4.1 Demographic observations
1. Gender
Male
Female
Total
116
84
200
GENDER
42%
58%
Male
Female
Graphical Presentation
The above diagram depicts that out of the total 200 respondent 42% of the respondent were female as the
objective was to study the consumer behavior with respect to online grocery, as grocery is more shopped by
female respondent.
2. Age Brackets
Age
Respondents
18-24
92
25-30
76
30& above
32
25-30
30& above
Interpretation
The 38 % of the respondent were among 30 & above age bracket as these respondents are well
educated and web savvy.
Another 46% of the respondent were ranging from 18-24 age bracket and the remaining 16 % were
respondent were ranging from 25-30 age bracket, as these respondents are ready to adapt changes.
4. Occupation
Occupation
Respondents
Services
124
Business
76
Total
200
OCCUPATION
Business; 38%
Services; 62%
Interpretation
For the research to be successful most of the respondents are working officials who are educated and web
savvy.
5.
Annual Income
Annual Income
Respondents
1-5 lakhs
76
5-10 Lakhs
82
10 & above
42
ANNUAL INCOME
10 & bove; 21%
Interpretation
From the above pie chart we can determine that 48 % of the respondent have around 5-10 lakhs of annual
income which indicates the majority of the respondent have the spending power to purchase grocery items.
Items
Apparels
Books
Electronic
Food
Games
Music
Other
No. of Respondents
48
28
56
16
32
12
8
Table 5:
60
50
40
30
No. of Respondents
20
10
0
Apparels Books Electronic Food
Games
Music
Other
Interpretation
The above diagram depicts that book has the highest number transaction in online shopping.
Music is the second most item sold in the online shopping, along with electronics appliances like hair
dryer, mobile appliances, computer peripherals etc.
The other items that are sold in the online shopping are the apparels which are more preferred by the
female respondent.
Games are the items that are preferred with the respondent ranging the age bracket between
Amount(Rs)
Number of respondent
100-500
48
500-1000
68
1000-5000
36
48
Number of respondent
40
30
20
10
0
100-500
Figure 6:
500-1000
1000-5000
Interpretation
The money spend in online shopping is ranging from INR 1000-5000, which indicates the users are willing to
pay more price when there is premium quality products such as electronics, branded apparels, original music
etc.
68
48
24
40
Others
20
No. of respondents
Somewha
Very
Not
Important
Importan
Important
110
75
t
60
105
30
20
82
93
82
71
36
36
Free shipping
144
29
Interpretation
From the above we can depict the factor which motivates the respondent to shop online is when they need home
delivery.
The other factor which motivates to shop online when they compare prices of different products at a same place.
The above graph also determines that people shop online when they dont have the time to find things in the market
for the product to be purchased.
Also respondent shop online when they want some unique & special product which they cannot find in the offline
market
Table 8:
160
140
120
100
80
60
40
20
0
Very Important
Some what Important
Not Important
Interpretation
The above diagram depicts that website user friendliness forms an important factor when it comes to
online shopping, more the website user friendliness will determine the number of visits to a website
which will in turn results an increase in the sale transactions for the particular shopping site.
Cash on delivery forms an important aspect of the online shopping website in the Indian online shopping
market, the above graph depicts that it does forms an most important part on the online shopping.
The other mode of payment gateway through net banking and credit/debit banking also forms an
important part of the online shopping website.
When it comes to tracking the items service in online shopping most of the respondents think that it is an
important service which allows the user to track their items in transit.
When it comes to the security aspect of the website Id & password forms an important aspect of the
online transaction. The other aspect order confirmation is the like the shopping cart where the user gets
the list of items he/she is going to purchase which avoids unnecessary purchase of the product , also
forms an important part of the online shopping website.
The above graph depicts that along offers & discounts, free shipping also forms as the most important
factor for the online shopping website, which forms a motivating factor for the user to shop
Table 9:
No. of respondents
52
48
64
24
12
Website Features
No. of respondents
Value of money
variety
12
24
Advertisments
Discount offers
Design of website
Figure 9:
64
48
52
Interpretation
From the above diagram we can determine that people prefer online shopping
when
discounts offered are offered to them.
Also the variety of product offering to the customer also forms an important
factor which motivates the respondent to shop online.
The other factor that motivates the user to shop online is when the product they
purchase is of value of money.
Also the design of website along with the different advertisement promotion
motivates
the user to shop online.
Issues
No. of respondent
No guarantee
48
Possibility of forgery
52
44
28
Security issue
20
Physical Examination
No guarantee
4%
Possibility of forgery
24%
To much clutter
14%
Security issue
Physical Examination
22%
26%
Interpretation
The other factor which demotivates the user to shop online is the security issue, which consists of issues like
phishing, hacking of accounts etc.
No of respondents
Local Kirana
80
Ration Shop
21
SabziMandi
49
Super Markets
50
80
49
50
Sabzi Mandi
Super Markets
21
Local Kirana
Ration Shop
No of respondents
Interpretation
The above graph depicts that most of the respondents shop from supermarket for grocery items. The
reason for shopping from the particular shopping centre can be depicted below.
Q.8. If given an option to buy grocery online will you buy online?
Yes
68
No
88
May be
44
Table 12
No; 44%
:
Preference to buy grocery online
Interpretation
The remaining percentage of the respondent may or may not buy grocery online due the factors like
physical examination and security issues.
The above graph depicts that around 34% of respondent are willing to buy grocery online if the option is
given.
Yes
136
No
64
No; 32%
Yes; 68%
Graphical Presentation
The above diagram depicts that most of the respondent think that buying grocery is beneficial which can
be determined from the next question.
The remaining respondent thinks that online grocery shopping will be not beneficial due the factors like
forgery products, highly priced products and no guarantee ofthe product.
No. of repondents
68
48
52
20
12
Parameters
6%
10%
34%
Easy to order
Variety
26%
24%
Table 14:
Saves time
Graphical Presentation
The above graph depicts that user respondent think that online shopping will be beneficial as it will save
their time to shop for grocery items.
The next relating aspect why consumer will shop grocery online as it will allow the user to avoid long
queues resulting in reduction in time spent in shopping.
The other factors why online grocery shopping will be beneficial as it will allow the user to shop all the
grocery at a particular place with discounts and offers.
Home Delivery
Something unique and special
To compare prices
Time constraint
others
User friendly website
Cash on Delivery
Online payment options
offers
Free shipping
Design of website
Discount
Advertisements
Range of Products
Value of Money
No guarantee
Security issue
High priced Product
To much clutter
buying grocery
online beneficial
-.114
-.033
-.091
.196**
.123
.646**
-.089
.472**
.341**
.230**
.315**
.248**
.287**
.141*
.106
.248**
.154*
.222**
.095
options to buy
online
.215**
.128
-.054
.520**
.504**
.379**
-.108
.344**
.260**
.260**
.731**
.596**
.844**
.489**
.413**
.596**
.482**
.576**
.488**
Physical Examination
.130
.464**
Unstandardized Coefficients
Model
Std. Error
(Constant)
1.197
.321
Home Delivery
-.168
.078
.061
To compare prices
Time constraints
Standardized
Coefficients
Beta
Sig.
3.726
.000
-.161
-2.148
.034
.080
.060
.766
.445
-.046
.057
-.056
-.813
.417
.050
.118
.055
.419
.676
-.132
.200
-.128
-.658
.512
.568
.102
.672
5.587
.000
-.068
.098
-.048
-.699
.486
.007
.104
.008
.065
.948
offers
.003
.105
.004
.029
.977
-.020
.093
-.028
-.217
.828
.201
.153
.232
1.311
.192
Advertisements
-.116
.100
-.140
-1.152
.251
Range of Products
-.060
.336
-.061
-.179
.858
Value of Money
-.066
.127
-.061
-.521
.603
No guarantee
-.037
.206
-.042
-.177
.860
Security issue
.378
.345
.403
1.095
.276
-.077
.205
-.087
-.373
.709
To much clutter
-.136
.117
-.153
-1.160
.248
Physical Examination
-.157
.199
-.136
-.789
.431
Others
User friendly website
Cash on Delivery
Free shipping
Design of website
Chapter 5
CONCLUSION
5.1 Summary
From the above data analysis it can be conclude that consumer buys goods from the online shopping website
on the basis of factors like offers and discounts, variety of product available, free home delivery, website user
friendliness and
The hypothesis framed for the project Consumer Perception towards Online Grocery Shopping was Online
grocery shopping stores are beneficial for the consumer.
From the above data analysis it can be determined that most of the respondent would agree to buy grocery
online rather than shopping of grocery with the traditional method.
Out of the agreed respondent to buy online grocery, most of the respondent would think that it would be
beneficial to shop grocery online on the basis of factors like easy to order, variety, discounts/ offers, saves time
and avoid long queues. With above analysis we can thus prove the hypothesis to be positive.
5.2 Limitations
The first limitation caused during the market research was to find out the respondent who shop online and
From the data collected above we can observe that there is an increase in the number of respondent in
the product.
The data depicts that supermarket are the preferred shopping destination as it offers all the basic aspect
of the online shopping which are price, quality variety, proximity to home, offers & discounts.
From the above data collection we can determine most of respondent agree to buy grocery online if the
option is give.
The data also determines the factors which will be beneficial for the consumer to shop grocery online
which are variety at one shop, saves times and avoid long Queues.
presentation, they will have to opportunely employ modern technologies for their businesses to become parts
of ecommerce future.
Of course, those, who acquire e-stores earlier, get better chance for future success and prosperity, though an
ecommerce site itself doesnt guarantee you anything. Only an appropriate ecommerce solution in combination
with thorough emarketing and advertising can buy you business insurance
APPENDICES
Questionnaire on Online Grocery Store
Name:
Gender:Male
Female
Age:18-24
25-30
30 and above
Occupation: Student
Service
Business
Income Level: 1 lakh - 5 lakhs
5 lakhs - 10 lakhs
10 lakhs and above
Q1. Which item you shop online?
Apparels
Books
Electronics
Food
Games
Music
Any other(Please specify)
Q2. How much money do you spent in online shopping? (Rupees)
100 - 500
500 - 1000
1000 - 5000
5000 & above
Q3. When do you feel the need to shop online?
Agree
Neutral
Disagree
Neutral
Disagree
Variety
Value for money
If others specify
..
Disagree
Neutral
Agree
No guarantee
Possibility of forgery
Product highly priced
Too much clutter
Security issue
Physical examination
Any other (Please specify)
Neutral
Agree
Kirana
Ration
Shop
Sabzi
Mandi
Supermarkets
Q9. If given an option to buy grocery online will you buy online?
Yes
No
May be
Bibliography:
Reference Books:
Reference Links:
Sasser, W. Earl, Jr., Olsen, R. P. and Wyckoff, D. D. (1978), Management of Service
Operations: Text and Cases. Boston: Allyn & Bacon.
Lehtinen, U. and Lehtinen, J. R. (1982), Service Quality: A Study of Quality
Dimensions, unpublished working paper, Service Management Institute, Helsinki,
Finland.
Lewis, R. C. and Booms, B. H. (1983), The Marketing Aspects of Service Quality, in
Emerging Perspectives on Services Marketing, Leonard L. Berry, G. Lynn Shostack, and
Gregory Upah, eds. Chicago: American Marketing Association, 99-107.
Parasuraman, A.. Berry, L. L .and Zeithaml, V.A. (1988), SERVQUAL: A Multiple-Item
Scale for Measuring Service Quality, Journal of Retailing, 64 (1), 12-40.
Parasuraman, Zeithaml & Berry (1985). A conceptual model of Service quality and its
implication for future research. Journal of Marketing, 49(4), 41-50.
Parasuraman, A.. Berry, L. L .and Zeithaml, Valarie A. (1991), Refinement and
Reassessment of the SERVQUAL Scale, Journal of Retailing, 67(4), 420-50.
Ennew, C.T., Reed, G. V; and Binks, M.R (1993). "Importance-Performance Analysis and
the Measurement of Service Quality", European Journal of Marketing, Vol. 27 (2) pp.59
70.
Web Links
http://www.firstpost.com/tech/indias-e-commerce-market-to-touch-260-bn-by-2025report-255350.html.
http://online.wsj.com/article/SB10001424052702303816504577308652286295634.
Html
http://www.businessworld.in/businessworld/businessworld/content/Services- EconomyMoves-Online.html?storyInSinglePage=true
http://trak.in/tags/business/2011/08/23/india-online-internet-users-survey-report2011/