Table of Contents

1. Introduction ............................................................................................................................ 2 1.1. Market Situation ............................................................................................................... 3 1.2. Research Significance and Problem Statement.................................................................. 3 2. Literature Review and Relevant Theories ................................................................................ 4 2.1. e-Service Attributes .......................................................................................................... 5 2.2. Consumers¶ Satisfaction ................................................................................................... 5 2.4. Behavioral Intentions ....................................................................................................... 6 3. Research Design and Method .................................................................................................. 7 3.1. Framework and Hypothesis of the study ........................................................................... 7 3.2. Population and Sampling .................................................................................................. 8 3.3. Instrument for data collection ........................................................................................... 8 3.4. Analysis of the data .......................................................................................................... 8 4. Time Plan ............................................................................................................................... 9 References ................................................................................................................................ 10 Appendix A .............................................................................................................................. 14 Appendix B............................................................................................................................... 15 Appendix C............................................................................................................................... 16

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diffusion of internet in the retail industry has imposed certain implications for the e-retail managers and online business practitioners. enjoyment. safety.. These innovative and quality oriented web layouts containseveral service attributes such as consumer convenience. The usage of internet to search products conveniently and at the cheaper rate is quite common among 2 . low price and so on. 2010). Schifman and Kanuk in their book consumer behavior (2006) defined this cognitive process through which individual selects.Consumers¶ Behavior towards Online Grocery Shopping: An Investigation of e- retail service context in the UK 1. 2005). The cognitive process of the consumers evaluates the e-service offerings of the online grocery retailers and develops certain perceptions against grocery websites. ultimately. and interprets stimuli into a meaningful and coherent picture of the world. In today¶s web oriented world. It is crucial for the grocery eretailers to understand the consumer perception about the websites¶ service quality that has certain impact on the consumers¶ satisfaction and. The core interest of the current research is to study the UK online grocery market. Retail managers have paid strategic attention to online channels of the retail market in order to cope up the crucial demands of the consumer goods particularly in the grocery industry (Hansen. organizes. Consumer perception is a critical element in the behavioral studies. 2003) in order to manipulate the satisfaction level and to gain positive change in the behavioral intentions of the consumers (Kim and Forsythe. Introduction In last two decades. The increasing intensity of online shopping has grabbed the attention of marketing theorists and e-retail practitioners to go across the conventional web stores (Lee and Lins. by exploring the theoretical dimension of e-retail service quality that has certaininfluence on the consumers satisfaction level. 2007). et al. 2005). that reciprocally provides online shoppers a holistic virtual shopping environment to fulfill their ever demanding desires (Kim et al. shoppers search several products on the internet before buying and among consumers¶ goods a very common thing to buy is grocery (Hansen.. where consumers have adapted the habit of online searching and/or buying in their routine shopping (Srinisvan. on their behavioral intentions.. and up to what extent this element of satisfaction in consumers¶ mind generate changes in their behavioral intentions. 2002). 2005) and come up with the innovative and quality oriented web layouts (Siddiqui et al.

The five above mentioned companies dominates the online grocery market.4). This is significant for the managers (such as brand. 2009). 1. contributing 89. easy price comparison. 2009a). J Sainsbury¶s and Waitrose ± and a fifth warehouse based online operator with the name of Ocado (a sub-partner distributor of Waitrose) (see Appendix. market will approach an approximate value of 57.8 billion. In spite of steady growth in the grocery market of UK. yet a big number of consumers feel reluctant to do grocery shopping online (Kim and Forsythe. keynote report has declared that market expansion of online grocery retail in UK has a projection of double size in the year 2013. This research impetus the effect of service quality attributes on the online grocery shoppers and up to what extent these attributes manipulate the consumers¶ satisfaction and behavioral intentions. B).3 billion dollars (with an estimated surging % of 69.There are four key players in the UK online grocery market ± Tesco. convenient home deliver to save time and many others. Purchasing grocery online provides certain advantages to the web shoppers. Market Situation Study published by Mintel in 2009 averred that UK online retail market has come up with a significant growth volume in the year 2008 (presenting an accelerated growth of 25%) and after five years since 2008.the UK internet grocery market has shown value of approximately £3. Research Significance and Problem Statement Major players of grocery market are redesigning their conventional websites to meet the contemporary service trends of the online retail market to cope up the emerging trend of people shopping styles in the UK.8% of the grocery sales in the UK for the year 2008 (Keynote. ASDA. but e-retail practitioners and managers have to come up with better service offerings to manipulate the consumers¶ shopping choice.the consumers (Mintel.2% of the whole market size with the sales figure of £2. it incorporates extensive range of products. Particularly. store.9 % increased value against the previous year 2007 (Keynote.2. Market situation illustrates that the growth opportunities are there for the e-tailers in the online grocery competition. In contrast to the figures of 2008. 2009b). A). the sixth major ground grocery retailer Morrisons has not yet stepped in the online market (Keynote. service and 3 . This research has the potential to come up with certain positive directions for the e-retailers in the UK grocery market. 1.14 in the year 2008 ± which is 27. which is still too small only 2. Grocery shopping on the internet is a sub branch of the home shopping values. 2009a) (also see Appendix. 2009).1.

4 .retailer business) and for the marketing theorists to study the in depth importance of the grocery web-retail attributes to incorporate positive efforts in this particular context. Literature Review and Relevant Theories The purpose of literature review is to thoroughly discuss the topic in a particular context of past studies and to avoid any sort of unawareness to important dimensions and variablesthat might have certain influence on the current research (Bryman and Bell.3. eService Attributes. mentioned in the current study. Since this study is based on the consumers¶ behavior regarding grocery market of online industry in the UK. 2009) has attempted to add literature in this area. Consumers¶ Satisfaction and Consumers¶ Behavioral intentions. from end consumers¶ corner hardly any research has been done yet in the UK online grocery market. 2007). this research will cover the following major objectives  To study the consumers¶ shopping behavior in the e-retail area of UK grocery market  To studythe relationship between e-Service attributes and Consumers¶ satisfaction in the grocery e-tail market of the UK  To examine the relationship between satisfaction and behavioral intentionsfrom consumers¶ point of view in the online grocery market of the UK 2. Though. Research Objectives Under the light of the above mentioned introduction and market scenario problem statement. consumers¶ satisfaction and behavioral intentions in context of the UK online grocery market´ 1. it will be worthwhile to deeply go through the earlier literature related to the three main variables. an online administered questionnaire based study) or an exploratory study generally covering the online shopping trends of UK from retailers perspective (Rowley. A few studies has covered the grocery market (such as Hansen. This research will cover the conceptual gap found in the academic literature to help out the business academicians as well as it will cover the contextual gap to provide new directions to the e-retail managers of the online grocers by resuming the below defined problem statement: ³To study the relationships between e-Service Attributes. 2005.

information. Consumers¶ Satisfaction Concept of consumers¶ satisfaction has been remarkably remained a hotspot of marketing professors for the last four decades (Ha et al. p.from the earlier discussed concept of service quality. Since the publication of Oliver (1977) 5 . traditional service quality measurement tool ³SERVQUAL´ has been restated by several researchers (such as Kaynama and Black. 2002. Loiacono et al. 2. 1985). 1982. Webb and Webb.2. 2007). Parasuraman et al. communication and webaesthetics... 2001. reliability. respectively. 1985) are at the top of the lists who have contributed in the conceptualization of the term ³service´ in marketing literature. empathy and assurance) to measure the real business performance of service firms..Yoo and Donthu. customization. responsiveness. Several well renowned Scandinavian and American researchers (Grönroos. Since 1985..2. eTailQ. a commonly used definition of service quality in marketing literature as well as in practical aspect is ³how customers make comparison between their expectations and perceptions of delivered services´ (Parasuraman et al. and Kim et al. 2006 ) with their own dissimilar names (such as E-Qual. SITEQUAL. due to the unbelievablesurfacing of e-retail business in the 21st century. Later on. Santos (2003.1. Wolfinbarger and Gilly. 2005. E-S-QUAL and E-A-S-QUAL).. SiteQual. named as ³SERVQUAL´ (including five core service attributes: tangibility. 2003.e loyalty). 2004. Their latest US college male and female students based research in e-retail apparel context has exposed that the quality of e-serviceattributes have certain positive impact on the consumers¶satisfaction and behavioral intentions (i. Nevertheless. 1979). WEBQUAL. Parasuraman et al. 2000...235) refined the concept of service quality in electronic retailing context as ³the consumers¶ overall evaluation and judgment of the excellence and quality of e-service offerings in the virtual marketplace´. (2009) examined the e-retail context by using the five key attributes of e-service quality such as convenience. which areall driven through their previous research paper published two years before (Kim et al. e-Service Attributes Service quality is a sub-marketing concept muscularly linked with the perceptions of the consumers (Gummensson. Parasuraman and two of his colleagues Zeithaml and Berry (1988) retrieved a measurement tool. 2010a). Kim et al.

2003). Researchers. or emotional response of the consumer¶ (p. 1994) have consensus that perceived service quality. 1993). commitment (Park and Kim. However. 2007). 2009).. The positive and negative evaluation of the e-Service quality attributes leads the customers to build a satisfactory or dissatisfactory image in his/her mind. Most of the marketing papers have revealed that such consumers¶ behavioral acts are seems to be in the market place in the form of word of mouth (Brown et al. Particularly. Though the current study discusses the e-Service attributes. 2010). Behavioral Intentions Literature of marketing has widely discussed the role of service quality and consumer satisfaction in several retail business environments. marketing scholars have examined this concept through different consumer behavior perspectives to create a generalize conceptualization.. Anderson et al. in most of these papers. Fishbein and Ajzen (1975) defined behavioral intentions µas thecustomers¶ subjective probability of performing a certain behavioral act¶. 2007. 2005)... Yen and Lu 2008. past researchers (such as Parasuraman et al. to act in the approval/disapproval of the company. 1991... Anderosn et al.1). 1994) and illustrates that how a company has to allocate its resources in the business to achieve the milestones of its long term growth plans (Anderson and Sullivan. 1992) due to the subjectivity element linked with the consumers¶ multi-service experiences in this global world. till the moment researchers are in the controversial debate to agree on a single pet definition of satisfaction (Roger et al...4. 2. affective. repurchase intention (Anderson and 6 . (2010b) defined satisfaction as µan evaluation. purchase intention (Cristobel et al. which means if the service delivered from web retailerside is evaluatedbetter in quality then as a result satisfaction should occur at the consumers¶end (Carlson and O¶cass.19. Oliver (1989) cited by Ha et al. are keened toward the evaluation of behavioral intentions that prepare consumers to act. ultimately. The available recent papers examining the websites have argued that better service quality of a firm has a positive influence on the customers¶ satisfaction (Cristobal et al. Satisfying the customers has always been remained at the priority of the managerial interests. Lin and Sun. which is a remarkable indicator for a firm¶s prospect profitability (Kotler. 1988. expectations and disconfirmation directs the consumers toward satisfied/dissatisfied decision stage. e-Service quality delivered to the customers through several web attributeshas certain influence on customers¶ satisfaction. eventually.article in the µJournal of Applied Psychology¶. p.

Ha et al. .. 2010a). 2002) and consumers¶ switching intention (Zeithmal et al. 1993. H2: Customer service attributes in the online grocerymarket have certain impact on consumers¶ satisfaction. 7 . application of deductive approachis satisfactory to fulfill the requirement of current research design(Sekaran. several studies have exposed that relationships between e-Service quality attributes. 2004). Framework and Hypothesis of the study Theoretical framework introduced in the current research explores the hypothesized relationships between the three constructs in the UK online grocery (see Appendix C).. 1996). Research Design and Method Research methodology is based on the philosophical approach to manipulate a compatible strategy that gives a thorough support in the study (Saunders et al. The adaptation of deductive approach underpins quantitative self-administered online questionnaire in order to empirically investigate the problem statement. complaint behavior (Janda et al.1. Current study has focused on the online grocery shoppers of the UK to empirically investigate the conceptual model developed through prior theoretical literature..Sullivan. 3. 3. Hence. consumers¶ satisfaction and behavioral intentions in retail context has occurred. H3:Convenience related e-Service quality attributes have certain impact on consumers¶ satisfaction. based on the previous research work written in the literature of consumer and services marketing. For last one decade. H1:Web appearance and design related e-Service quality attributes have certain impact on consumers¶ satisfaction.. numerous researchers have examined the consumers¶ behavioral intentions in the e-retail context and previous research will precise the current study to come up with new empirical findings in the services marketing literature. Concluding the above mentioned literature. 2003). Current study will explore these relationships in online grocery shopping context and come up with new judgments of consumers in the UK market.

Consumers¶ Satisfaction. Population and Sampling The population includes all those people who are the online shoppers of grocery websites. H5: Information related e-Service quality attributes have significant influence on consumers¶ satisfaction. BVNT etc) for further statistical analysis such as mean.In addition.4.3.2. ANOVA (analysis of variance). Analysis of the data In the first part of this section. 3. and behavioral intentions. t- 8 . offices etc (Bryman and Bell. internet usage. The average mean of each dimension will be re-coded in the SPSS to develop new variables (named as CONV. education. socio-demographic analysis of the sample characteristics will be done to present the gender. a convenience sample of 250 male and female online grocery shoppers in the five major cities of the UK will be selected for the data collection. 2007 p. SPSS µcompute¶ option will be used to calculate the average mean of each construct scale of the e-Service quality attributes (such as convenience. H7:e-Service quality of online groceryretail has significant influence on consumers¶ satisfaction level. age. 3. H6:Security and Privacy risk related e-Service quality attributes have significant impact on the consumers¶ satisfaction. 3. ESQL. monthly expenditure. per se. H8: Consumers¶ satisfaction towards online grocery retail has certain impact on the consumers¶ behavioral intentions. As the trend is latest in the market. Instrument for data collection An onlinequestionnaire based on several items retrieved through the theoretical literature will be build in order to deal with the research. annual household income and monthly grocery expense. In the third section.474).H4:Web usefulness and Ease of Use related e-Service quality attributes have significant influence on the consumers¶ satisfaction. linear regression model will be run on the SPSS to present summary statistical model. standard deviation and linear correlation. customer service etc). In the second section. Online questionnaire will be uploaded on a URL to distribute to the subjects so that they can answer conveniently by staying at their homes. information. most of the respondents will be young in their age.

statistics and regression coefficients on the main variables of the study in order to test the developed hypothesis discussed in the framework. 4. Time Plan 25-Oct-11 Prelimanry Literature Review Refinement of Research Questions Development of Theoretical Framework Development of Research Hypothesis Pilot Study (including ethical implications) Pilot Study Analysis & Modifications Data Collection Data Analysis and Interpretation Report Writing 12-May-12 28-Nov-12 16-Jun-13 02-Jan-14 21-Jul-14 9 .

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3 ‚28/02/09 21/03/09 31/12/07 ASDA Group 16.7 2.0 PLC Somerfield Ltd Waitrose Ltd 4.4 3.Appendix A Financial Results for the Leading UK Supermarket Chains (£m and %). for Tesco PLC. Latest Financial Years PreTurnover Tax Profit (£m) (£m) PreTax Year End Profit Margin (%) Tesco PLC J Sainsbury PLC 54.6 120. turnover equals revenue.954.myicc.0 2.3 4.4 Ltd Wm Morrison Supermarkets 14.911.0 560.0 82.737.896.5 2.2 655.0 3.uk 14 . J Sainsbury PLC and Waitrose Ltd.0 18.528.0 5.221. J Sainsbury PLC and Wm Morrison Supermarkets PLC excludes VAT.2 01/02/09 26/04/08 26/01/08 ‚ ² 53-week period Note: turnover for Tesco PLC. Source: www.co.4 466.327.5 3.

085 1.2 1.240 118.keynote.375 1. Years Ending December 2004-2008 2004 UK Internet grocery market (£m at rsp)e 1.1 2.835 2.Appendix B The Approximate UK Internet Grocery Market as a Percentage of Retail Sales Through `Predominantly Food Stores' in Great Britain (£m at rsp and %).co.157 124.455 3.0 1.493 110.6 2.835 UK Internet grocery sales as a % of retail sales through food storese 1.5 rsp ² retail selling prices Source: https://www.140 2005 2006 2007 2008 Retail sales through food stores (£m at rsp)‚ 106.uk/market-intelligence/view/product/2268/ecommerce%3A-the-internet-grocery-market/chapter/5/supermarketsonline?highlight=online retail market UK 15 .055 114.

Appendix C Theoretical Framework of the Study 16 .

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