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A Study On Customer Satisfaction Towards Online Grocery Stores During Covid 19 Pandemic PDF
A Study On Customer Satisfaction Towards Online Grocery Stores During Covid 19 Pandemic PDF
By
FK-3344 JOTHISH V
May 2020
DECLARATION
We, the undersigned, hereby declare that this project report entitled “A STUDY ON CONSUMER
SATISFACTION TOWARDS ONLINE GROCERY STORES DURING COVID-19 PANDEMIC” is
our original work.
We understand that detection of any copying is liable to be punished in any way the school deems fit.
FK-3344 JOTHISH V
ii
ACKNOWLEDGEMENT
Primarily, we would thank God Almighty for being able to complete this project with success during Covid-
19 Pandemic. We would like to express our special gratitude and thanks to Ms. Joby Joy for the valuable
guidance. Then we would like to thank few of our friends who were the helping hands directly or indirectly in
whose valuable guidance has been the ones that helped us patch this project and make it full proof success.
Then we would like to extend our gratitude to our parents and relatives who have helped us with their valuable
suggestions and guidance which have been helpful in various phases of the completion of the project.
Last but not the least, we would like to thank all our team members who have helped each other towards the
completion of the project.
FK-3344 JOTHISH V
iii
TABLE OF CONTENTS
DECLARATION ............................................................................................................................................. ii
ACKNOWLEDGEMENT ............................................................................................................................. iii
INTRODUCTION AND THEORITICAL BACKGROUND OF THE STUDY ....................................... 1
1.1 INTRODUCTION ................................................................................................................................... 2
1.2 PROBLEM STATEMENT ...................................................................................................................... 2
1.3 LITERATURE REVIEW ........................................................................................................................ 3
PROFILE.......................................................................................................................................................... 6
2.1 INDUSTRY INTRODUCTION .............................................................................................................. 7
2.2 ONLINE GROCERY SHOPPING .......................................................................................................... 7
2.3 BENEFITS OF ONLINE GROCERY SHOPPING ................................................................................ 7
2.4 DISADVANTAGES OF ONLINE GROCERY SHOPPING ................................................................. 8
2.5 PLAYERS IN ONLINE GROCERY SHOPPING .................................................................................. 8
2.6 CURRENT STATE OF GROCERY INDUSTRY ................................................................................ 11
2.7 CHALLENGES FACED BY THE GROCERY BUSINESSES DURING PANDEMIC PERIOD ..... 12
1. Change in Business Model ................................................................................................................ 12
2. Poor Supply Chain Management ..................................................................................................... 12
3. Less Workforce .................................................................................................................................. 12
4. Delivery Delays .................................................................................................................................. 12
5. Transition in Consumer Behavior ................................................................................................... 12
RESEARCH METHODOLOGY ................................................................................................................. 13
3.1 OBJECTIVES OF THE STUDY ........................................................................................................... 14
3.2 HYPOTHESIS ....................................................................................................................................... 14
3.3 SCOPE OF THE STUDY ...................................................................................................................... 14
3.4 RESEARCH DESIGN ........................................................................................................................... 14
3.5 SAMPLE DESIGN ................................................................................................................................ 14
3.6 COLLECTION OF DATA .................................................................................................................... 15
3.7 TOOLS FOR ANALYSIS ..................................................................................................................... 15
Frequency analysis ................................................................................................................................. 15
Chi-Square Test ...................................................................................................................................... 15
Factor analysis ........................................................................................................................................ 15
One-way ANOVA ................................................................................................................................... 15
3.8 LIMITATIONS ...................................................................................................................................... 15
ANALYSIS AND INTERPRETATION OF DATA ................................................................................... 16
4.1 AGE OF THE RESPONDENT.............................................................................................................. 17
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4.2 GENDER OF THE RESPONDENT...................................................................................................... 18
4.3 INCOME LEVEL OF THE RESPONDENT ........................................................................................ 19
4.4 OCCUPATION OF THE RESPONDENT ............................................................................................ 20
4.5 PURCHASE OF GROCERIES ONLINE.............................................................................................. 21
4.6 PLACE OF PURCHASE OF GROCERIES .......................................................................................... 22
4.7 GENDER * PURCHASE OF GROCERIES ONLINE ......................................................................... 23
4.8 GENDER * PLACE OF PURCHASE OF GROCERIES ..................................................................... 25
4.9 INCOME LEVEL * PREFERRED GROCERY STORE ...................................................................... 27
4.10 ONE-WAY ANOVA- INCOME LEVEL AND PREFERRED GROCERY STORE ........................ 29
4.11 CUSTOMERS’ EXPECTATIONS ABOUT ONLINE GROCERY STORES ................................... 30
4.12 FACTOR ANALYSIS ON CUSTOMERS’ EXPECTATION ABOUT ONLINE GROCERY
STORES ....................................................................................................................................................... 31
4.13 GAP ANALYSIS ................................................................................................................................. 33
4.14 PREFERRED GROCERY STORE ..................................................................................................... 35
FINDINGS AND CONCLUSIONS .............................................................................................................. 36
5.1 FINDINGS ............................................................................................................................................. 37
5.2 CONCLUSION ...................................................................................................................................... 38
SUGGESTIONS AND RECOMMENDATIONS ....................................................................................... 39
6.1 SUGGESTIONS .................................................................................................................................... 40
BIBLIOGRAPHY .......................................................................................................................................... 41
APPENDICES ................................................................................................................................................ 42
QUESTIONNAIRE ..................................................................................................................................... 43
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LIST OF TABLES
LIST OF GRAPHS
FIGURE 1 (AGE OF RESPONDENT)................................................................................................................... 17
FIGURE 2 (GENDER OF RESPONDENT) ............................................................................................................ 18
FIGURE 3 (INCOME LEVEL) ............................................................................................................................ 19
FIGURE 4 (OCCUPATION) ................................................................................................................................ 20
FIGURE 5 (PURCHASE OF GROCERIES ONLINE) ............................................................................................. 21
FIGURE 6 (PLACE OF PURCHASE OF GROCERIES) ......................................................................................... 22
FIGURE 7 (GENDER * PURCHASE OF GROCERIES) ......................................................................................... 24
FIGURE 8 (GENDER * PLACE OF PURCHASE OF GROCERIES) ........................................................................ 26
FIGURE 9 (INCOME LEVEL * PREFERRED GROCERY STORE) ....................................................................... 28
FIGURE 10 (GAP ANALYSIS)............................................................................................................................ 34
FIGURE 11 (PREFERRED GROCERY STORE) .................................................................................................... 35
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EXECUTIVE SUMMARY
This research focuses on consumer satisfaction towards online grocery stores during the covid-19 pandemic.
This research has done a deep research on the customers and the customer satisfaction along with the consumer
behavior regarding online delivery of goods and services. We have used different methods to take the
information about the topic.
● Online grocery stores must start delivering their products in remote areas.
● More promotion and awareness measures must be taken by online grocery stores.
● Online grocery stores must add all ranges of products which are available in offline stores.
● More variety and branded products must be introduced to cater the needs of different consumers.
● Online grocery stores must ensure the timely delivery of the product.
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CHAPTER - I
1
1.1 INTRODUCTION
Food and grocery are the basic daily need of any household. Grocery products include the edible commodities
that are purchased often or on continuous basis from supermarkets, usually at regular intervals of time.
Traditionally, groceries are bought in set-up where the consumer can inspect the product before buying. Online
grocery business is at emerging stage in India. The feature of online grocery shopping is that consumers
purchase grocery products through retailers’ websites by simply clicking the mouse button for the required
items and the subsequent delivery of those ordered groceries at home. As of now people in India are not much
familiar with this kind of model. People in the country prefer buying items like groceries, fruits, and vegetables
by physical comparison of price and quality.
Customer satisfaction is the key factor which is given a lot of importance in the present competitive market in
all customer related services. It measures how products and services supplied by a company meet customer
expectation. Customer satisfaction is defined as “the number of customers, or percentage of total customers,
whose reported experience with a firm, its products or its services exceeds satisfaction goals.
The impact of coronavirus has created troubling waves among people globally. Governments are
implementing nation-wide lockdowns to curb the transmission of this menace. People come out occasionally
for essential services like food, grocery shopping, etc. However, people are finding it more and more difficult
to step out of their homes. To counter the demands of the people, on-demand apps are surging in this
quarantine season. The food and grocery delivery market has boomed exponentially since the outbreak of
COVID19. These apps deliver food and grocery to the doorsteps of the people. People are inclined to use the
app, order their products, and get them delivered instantly. The market is reacting quite well to satisfy the
needs of the customers.
As the coronavirus makes it more difficult for people to go out due to the fear of infection, delivery services
like Zomato and the competitors are expanding to add grocery delivery to their services. To adhere the social
distancing and avoid contracting coronavirus, there has been a subsequent boom in online grocery shopping.
This study is conducted to analyze the consumer expectation and satisfaction towards online grocery stores
during the COVID-19 pandemic.
2
1.3 LITERATURE REVIEW
In any research, it is necessary to carry out a comprehensive study of the already available literature to identify
the research gap and the scope of conducting the study. In order to be innovative, literature survey is inevitable.
The study, ‘A study on consumer satisfaction towards online grocery stores during Covid-19 pandemic’ is
conducted on the light of previous studies. The literature review of such studies are as follows:
Muriel Wilson-Jeanselme and Dr. Jonathan Reynolds (2006) conducted a research on “Understanding
Shoppers’ Expectations of Online Grocery Retailing”. This paper has sought to explore expressed preference
differences between shoppers patronizing three UK online grocery retailers (Tesco.com, Sainsbury’s.co.uk
and Ocado.co.uk) and offline grocery shoppers. A select group of high net worth online grocery shoppers are
examined for collecting the responses. Both qualitative and quantitative procedures are used to determine the
most frequently cited attributes affecting online patronage. The study concludes that even if ordering time and
quality come first for online and offline shoppers, the weighting of these factors is different between these two
segments of shoppers as well as amongst online shoppers from different retailers. The study also reveals that
delivery time, and reliability remains a concern for online shoppers while offline shoppers are still focusing
on the content of their shopping basket, with the importance of substitutes.
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad
Rafiq Surti (2018) conducted a study on “Online Grocery Shopping and Consumer Perception: A Case of
Karachi Market in Pakistan”. The research study aims at identifying the key factors that tend to increase the
adoption of online grocery, what consumers want from a grocery store and what are their current attitudes
towards the concept. The study revealed that the respondents avoid online grocery shopping because it lacks
the element of physical examination by the buyer, and the chances of forgery are also present along with the
possibility of security risk that the buyer’s personal and financial information might be misused.
Kavitha R (2017) studied Consumers acuity towards online grocery shopping. The main aim of the study was
to ascertain consumer perception towards online grocery shopping in Coimbatore and to determine whether
consumers are aware of the availability of online grocery sites. Percentage analysis and Chi- square test are
used in the study for the analysis. The findings of the study showed that majority of the respondents have
experience of shopping groceries online. Big Basket was the most preferred online grocery store among
respondents.
Rainu Tanveer Singh (2012) conducted a study on “Consumer perception towards online grocery stores. The
main objective of the research was to study the attitude of customers towards online shopping. Another focus
of the study was to determine whether online grocery shopping will be beneficial and factors influencing the
user to purchase online grocery. Quota Sampling was the technique used for selecting survey participants.
3
Structured questionnaire was the tool used for data collection. The study reveals the factors that are beneficial
for the consumer to shop grocery online which are variety at one shop, saves times and avoid long queues.
S. Sathiyaraj, A. Santhosh Kumar and A.K Subramani (2015) studied on the topic “Consumer perception
towards online grocery stores, Chennai”. The major objectives of the study was to find out the factors which
influences the attitude of customers towards online grocery shopping and to find out the preferences of the
consumer regarding the attributes of online shopping website. The research reveals that the reason for choosing
the online shopping was to purchase unique and special articles, and the respondents want to find the best price
of the product.
S. Kamakshi (September 2016) conducted a Study on the topic “Consumer Perception and behavior towards
fast food: a study with reference to Chennai city.” The major findings were that consumer of fast food are
health conscious and they do not have emotional attachment for fast food products. And the consumers
consume fast food not only because of the taste, price, offers, and discounts rather they consider the Quality,
health, and hygiene factors of the fast food.
Sabari Shankar R, Naresh Kumar S (2018) studied on the topic “A Descriptive Analysis of Consumer
Perception on Online Grocery Shopping”. The main objective of the study was to understand Consumer
Perception of Online Grocery Shopping and to understand the impact of demographic factors on consumer
perception of online grocery shopping. Simple Percentage Analysis, Correlation and Chi-Square test were
used for the finding the results. The study was limited to the sample and data collected from consumers of
Coimbatore city. The research reveals that the respondent’s reluctance on providing personal information,
helpfulness of online grocery shopping, controlled monthly budget, reliability of delivery person, necessity of
online grocery shopping, Apps for online grocery shopping, flexible for schedule, enhancing consumer
efficiency have been impacted by the demographic factors.
Suryadev Singh Rathore, Mahik Chaudhary (2018) conducted a study on “Consumer's Perception on Online
Food Ordering.” In this research paper, two objectives were set for study. The first one was to identify the
factors which influence the consumer to order food online and the other one was to know the consumer
preferences on online food ordering services provider. The study found out that recent development of the
Internet has augmented the e-commerce industries in a country like India. E-commerce development has made
Online food ordering services seamless for people who want to get food delivered at their doorstep. Although
consumers continue to go out for the meals, consumers feel very convenient to order food online since it frees
the customer from personally visiting the restaurants. Survey successfully helped to understand the behavior
and perception of people for online food ordering.
4
Anita Goyal and N.P. Singh (2007) has done a study on “Consumer perception about fast food in India: an
exploratory study.” The study shows that Indian youth are attracted towards fast food for fun and for a change
in the daily routine of having homely food. The youngsters prefer for nutritious food followed by ambience
and hygiene at the fast food outlets. They personally feel that nutritional value and hygiene conditions inside
cooking area should be disclosed to them.
H.S. Sethu and Bhavya Saini (2016) studied “Customer Perception and Satisfaction on Ordering Food”. The
study revealed that the online food ordering services was used by 100 percent of the respondents, and the
buying decisions were largely influenced by opinions of friend’s family and discussions on online forums. The
study reveals that good word of mouth and experiences by existing customers and online forums decides the
success of web-based food shopping.
Research on online grocery shopping has been limited since this is a relatively new retail channel. Although
most of the previous studies have succeeded in revealing the factors affecting online grocery purchase,
consumers behavior and their attitude, some researches had failed to study the expectations and the experience
of consumers with regard to online grocery stores.
5
CHAPTER - II
PROFILE
6
2.1 INDUSTRY INTRODUCTION
Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global
phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby
reducing the price of their products and services in order to stay ahead in highly competitive markets.
Companies also use the Internet to communicate and disseminate information, to sell the product, to take
feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy
the product online, but also to compare prices, product features and after sale service facilities they will receive
if they purchase the product from a particular store. Many experts are optimistic about the prospect of online
business. In addition to the tremendous potential of the E-commerce market, the Internet provides a unique
opportunity for companies to reach existing and potential customers more efficiently.
Proving that no sector of the retail market is safe from the online shopping revolution, it is now possible for
the humble hometown grocery store to become digitized and available on your smartphone, tablet, or
computer. Just think no more long checkout lines, counting the number of items to see if you qualify for the
Express Lane, forgetting your grocery list at home, or carrying heavy bags up your front steps. Online grocery
shopping is dramatically changing the consumer’s relationship with the food market and making a service that
may have once felt luxurious into an everyday convenience.
An online grocery store is a website that allows users to purchase food over the Internet to be delivered to the
person at a later time. Ordering food on the Internet is similar to ordering any other product--the desired food
items can be searched for specifically, or one can browse through listings of products or sections, similar to
sections one might walk through at an actual grocery store. The products offered by an online grocery store are
identical to a normal grocery store. When one has finished shopping, checkout is made with a credit card, and
the buyer must specify certain hours that he will be available to receive the food for delivery. Since Internet
groceries must deliver the food to the customers, they typically pay a fee for delivery based on the amount of
food they buy.
The primary benefit of online grocery shopping is convenience. 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
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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 is increasing in
popularity as more and more people become comfortable with using the Internet to make purchases.
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.
❖ Biggro
Biggro is a multinational venture promoted by Impel Traders India Pvt Ltd. Cochin, which aims at creation of
a global platform for ecommerce for different sectors of retail. A one stop shops for all your needs to provide
an effortless and pleasant shopping experience.
Impel traders was founded in 2005, headquartered at Kochi address and deals with export of fruits, vegetables,
groceries, spices, and meat to abroad. In 2010, their distinguished product ‘Silozone’ catered to supply of farm
grown fresh produce from the farmlands in Kerala to a global market. The distinct grounds for its exclusivity
lay in the elimination of middlemen and thus, bringing the customer one step away from the provider, a
necessary requirement for our methods of quality control. They have expanded along the years and are looking
at spreading out all across the globe.
❖ Cochin.biz
A one-stop shop for a wide range of products as well as services, this shopping portal embarked on its journey
in the year 2012. Since then, this online shopping website has catered to the shopping needs of a plethora of
customers through a vast portfolio of products and services. With a view to cater to a wider base of customers,
it has spread its serviceable pin codes to multiple cities and towns across the nation. This firm is of the belief
that customer service is as important as their products and services, and hence they pay attention to every step
of the process; right from the time a customer places an order to the time it reaches their doorstep. Being a
user-friendly interface, online shopping on its website www.cochin.biz is easy as it gets, even for a first-time
user. Also experience a seamless online shopping experience on your mobile phone by downloading their app.
8
It is also listed under Online Shopping Websites, Online Shopping Websites for Grocery, Online Shopping
Websites for Vegetables.
Cochin.biz in Ernakulam has a customer service helpline to help and assist customers. Using the website, you
can browse through the complete catalogue of offerings that are conveniently featured under multiple
categories. The sale section allows us to grab the product or service at a competitive pricing. The bestsellers
section features the top selling products or services that are in popular demand. By using the sort and filter
options, we can easily narrow down and shortlist to a product or service to our liking. Pay for the product or
service with ease by using any of the available modes of payment such as Cash, Master Card, Visa Card, Debit
Cards, Cheques, American Express Card, Credit Card. They also have a returns and replacement policy in
place to help customers return or exchange products within a definitive time period.
❖ LuLu Hypermarket
LuLu Hypermarket, the retail division of the multidimensional and multinational LuLu Group International
has always been known as a trend setter of the retail industry in the region. Today, LuLu symbolizes quality
retailing with 143 stores and is immensely popular with the discerning
shoppers across the Gulf region. With its pleasant and novel variation from the usual supermarkets, LuLu
offers an ultra-modern shopping ambience by integrating all conceivable needs of the consumers under one
roof. LuLu Hypermarkets have extensively laid out counters, sprawling parking spaces, play areas for children,
food court, money exchange and bank counters besides a panoply of international and regional brands aptly
justifying its tagline, 'LuLu, where the world comes to shop'. LuLu Hypermarkets not only dot the cities of the
UAE but have become the most preferred shopping destinations in Oman, Qatar, Kuwait, Bahrain, Egypt,
Saudi Arabia India, Indonesia and Malaysia.
LuLu, being a pioneer in setting standards, introduced the LuLu Webstore - a one stop e-commerce website
for all our shopping needs. The webstore allows customers to browse for thousands of products, shop by
department, compare prices, read reviews, share products with friends, check the status of orders and more,
all from the comfort of home. LuLu Webstore’s Easy Returns Policy ensures that you have a tension-free
online shopping experience. Lulu webstore has extended its delivery services within a 25-km radius of the
store in Kochi to serve customers who may be staying away from crowded places due to the threat of Covid-
19.
❖ Foodro
Foodro is Kerala’s fastest growing online grocery store. They are a web-based marketplace for groceries,
produce, ready-to-eat foodstuffs, homeware, health & beauty products, pet care essentials and much more.
They are committed to streamlining our daily shopping experience with fresh products, top brands, and spot-
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on delivery. At Foodro, all their shoppers are guaranteed quality, responsible logistics and round-the-clock
customer service. Their online shop showcases more than 5000 products at low margins, slashed prices and
offers. All of these products are ready for checkout with cash-on-delivery and online payment through banks
or popular e-wallets. Foodro is bringing quality, technology, and accessibility under one platform for all our
home needs.
Foodro currently operates in several areas across Kochi, Bangalore, Chennai. The Foodro online grocery
application ensures a ton of quality products made available for purchase at a touch. This simply means their
customers no longer have to go through the tedious process of shopping at their neighborhood convenience
store. With a few minutes spent on the app, they can easily make their choices, order them to their address and
pay instantly or at the time of delivery.
❖ BigBasket
Bigbasket is the largest online grocery supermarket in India. It was launched in 2011, quite about the time
when e-commerce was in its nascent stage in the country. Bigbasket was founded by Hari Menon, VS
Sudhakar, V S Ramesh, Vipul Parekh and Abhinay Choudhari. Bigbasket is headquartered in Bengaluru and
delivers to various cities in India such as Hyderabad, Mumbai, Pune, Chennai, Delhi, Noida, Kochi, Mysore,
Coimbatore, Vijayawada-Guntur, Kolkata, Ahmedabad-Gandhinagar, Lucknow-Kanpur, Gurgaon, Vadodara,
Visakhapatnam, Surat, Nagpur, Patna, Indore and Chandigarh Tricity city limits.
Bigbasket was launched at a time when India's busy workforce in cities was finding it difficult to allocate time
to buy groceries and home essentials. Bigbasket gave them the flexibility to place their order anytime and get
the things delivered at their preferred time. Bigbasket offers groceries and food supplies in various categories
such as fruits & vegetables, food grains, oil, masalas, bakery items, beverages, branded foods, personal care
products, household supplies, eggs, meat, fish, etc. Bigbasket currently offers more than 18,000 products
across various categories and features more than 1000 brands in its catalogue. Bigbasket comes with the
promise of lowest rates and prompt delivery services.
❖ Green Leaf
Greenleaf Online is One Stop destination to find everything on our grocery shopping list. From farm fresh
vegetables and fruits, a wide variety of fish and meat selection, pantry items to other household products, etc
are available here. No driving to and from the store, no perusing the aisles, no waiting in line…We would be
saving ourselves a lot of time and money by trying their online grocery delivery service to get fresh groceries
delivered to our doorstep.
They believe in the fact that 'A Healthy Lifestyle begins with Healthy Food'. Hence, they ensure in providing
only the very best to our valuable customers. Based on their 40 plus years of experience in the agricultural
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industry, they have launched the brand Greenleaf in the year 2012. Since then GreenLeaf has evolved to
become one of the best suppliers of organic fruits and vegetables in Kochi. They have incredible varieties of
imported fruits and they are able to provide the services to their customers anywhere in Kochi.
To be able to get all your shopping done in one place is a great bonus. But when we buy from them, we can
be sure of the quality because they have their very own farms for organic vegetables, and they procure our
needs directly from farmers. They offer an extensive range of choices when it comes to the fish and meat
section and they offer only the high quality, fresh regional specialties. Customer satisfaction is their primary
goal so they have no compromise on quality. In 2014, they were awarded the “BEST FARMER OF THE
YEAR” by the MAHATMA FARMER DEVELOPMENT FORUM. They host a large number of manpower
& machineries for catering to our needs and so they provide prompt services to their customers all 365 days
in a year. Food Safety and Standards Authority of India (FSSAI) - first introduced product - approval system
has been licensed their all packed products. Lakshadweep, Dubai, and Qatar are their main exporting centers.
They deliver fruits and vegetables to Lulu, Bismi, Nilgiris and Reliance. Hence, customers will get the best
quality products in retail and wholesale manner at the best possible prices at GreenLeaf.
The Coronavirus outbreak has made an unprecedented impact on the global economy. It has compelled various
companies to shut down or look for an alternate revenue stream to sustain in the marketplace. However, when
it comes to the grocery industry, the effects of this virus outbreak is quite unusual.
While Coronavirus has created a panic state making users buy more than required items, it has also made them
focus on essential goods only. An impact of which is that grocery retail industry segments like that of food
and beverages, electronic shopping, health and personal care, and general merchandising is seeing a significant
rise in their sales.
The virus has instilled fears in the hearts of consumers, making them prefer online grocery shopping over
visiting physical stores. A result of which is that while brick-and-mortar stores and supermarkets sales have
cut by significant ratio, e-grocery platforms have recorded a rise in average daily user rate by 40,000 during
this global pandemic period.
Also, as per Google trends, the number of searches around grocery delivery services have increased
dramatically.
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2.7 CHALLENGES FACED BY THE GROCERY BUSINESSES DURING PANDEMIC
PERIOD
1. Change in Business Model
The foremost challenge faced by the grocery industry is change in the business models. People, with the intent
to avoid physical contact, are looking ahead to using different mobile payment apps. They are also hesitating
to buy groceries from areas marked as hotspots or in crowded shops.
This is making it difficult for brick-and-mortar retailers and wholesalers to retain their customers and drive
sales without changing their traditional business and revenue model.
3. Less Workforce
Since the grocery workers have to remain in contact with multiple people during their job, they are afraid of
getting in touch with an infected person and losing their lives. On the top of it, various reports have revealed
the number of grocery and supermarket workers who died because of the novel coronavirus pandemic crisis.
These factors are preventing them from going to work, which is eventually making grocery business people
wonder how to manage their work with limited human resources.
4. Delivery Delays
In most of the grocery shops, delivery partners work on a contractual basis. During this crisis period, they are
not showing the willingness to work due to the fear of getting infected. This is again making it difficult for
grocery wholesalers to deliver all the food items at the doorstep of their consumers in real-time.
12
CHAPTER - III
RESEARCH METHODOLOGY
13
3.1 OBJECTIVES OF THE STUDY
3.2 HYPOTHESIS
• H0.1: There is no association between gender of the person and the purchase of groceries online
• H0.2: There is no association between gender of the person and the place of purchase of groceries
• H0.3: There is no association between income of the person and the online grocery store that they
prefer.
• H0.4: There is no significant difference between Income level & Preferred grocery store.
The research is undertaken with the objective to study the consumer satisfaction towards online grocery
stores during Covid-19 pandemic. The study focuses on the online grocery delivery stores available in
Kerala. The study will be conducted among respondents in Ernakulam district, Kerala. The satisfaction
levels of consumers are determined by various factors which are subject to study.
This is a descriptive research study as the facts and information used for this study are already available. The
study was structured and well defined. This study analyzes satisfaction regarding online grocery stores by
considering various aspects.
The sampling plan used is Non-probability sampling. Samples taken for data collection is chosen through
Convenience Sampling. The population considered under the study is limited to the respondents in Ernakulam
district. A sample of 50 respondents was taken for the study.
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3.6 COLLECTION OF DATA
Data analysis was done with statistical tool like Frequency analysis, Chi-square, One-Way ANOVA and Factor
analysis using SPSS and Excel.
Frequency analysis
Frequency analysis is a descriptive statistical method that shows the number of occurrences of
each response chosen by the respondents.
Chi-Square Test
The Chi-Square Test of Independence determines whether there is an association between categorical
variables. It is a nonparametric test. This test is also known as Chi-Square Test of Association.
Factor analysis
Factor analysis is a statistical data reduction and analysis technique that strives to explain correlations among
multiple outcomes as the result of one or more underlying explanations, or factors.
One-way ANOVA
The one-way ANOVA is a type of statistical test that compares the variance in the mean group whilst
considering only one independent variable or factor. It is a hypothesis-based test, it aims to evaluate multiple
mutually exclusive theories about data. It compares three or more than three categorical group to establish
whether there is a difference between them.
3.8 LIMITATIONS
• Time was a major limitation, as the project requires a longer period of study for better results.
• The study was conducted among respondents residing in Ernakulam district.
• The sample size is limited to 50.
15
CHAPTER - IV
16
4.1 AGE OF THE RESPONDENT
AGE
AGE
INTERPRETATION
The above pie chart depicts the age group of respondents. Out of 50 respondents, 70% of people comes under
the age category 18-24 and 20% of respondents belong to the age category 25 to 34. Only 2% of data were
collected from the age group 45 to 54 and above 55. Only 4% of respondents comes under the age category
35 to 44 and 2% of respondents prefer not to mention their age.
17
4.2 GENDER OF THE RESPONDENT
GENDER
Female 35 70 70 70
GENDER
Female Male
INTERPRETATION
The above table shows the gender wise classification of respondents. From the above pie chart, we can analysis
that majority (70%) of the respondents are female & only 30% of the respondents are male.
18
4.3 INCOME LEVEL OF THE RESPONDENT
Income level
Income level
80 74.0
70
60
No: of respondents
50
40 37
30
20.0
20
10
10 6.0
3
0
Upto 5 lakhs 5 lakhs-10 lakhs 10 lakhs and above
Income level
Frequency Percent
INTERPRETATION
From the above multiple bar chart, we can analyze both frequency of responses of 50 respondents and percent
in figures. Here, 74% of responses were given by people who earns up to 5 lakhs as their annual income, 20%
of respondents belong to the income category 5 lakhs-10 lakhs and only 6% of respondents have income more
than 10 lakhs.
19
4.4 OCCUPATION OF THE RESPONDENT
OCCUPATION
Table 4 (Occupation)
OCCUPATION
70
60
50
No: of respondents
40
30
20
10
0
Govt Employee Private Entrepreneur Student Other
Occupation
Frequency Percent
Figure 4 (Occupation)
INTERPRETATION
Majority of people purchasing groceries online are Students. Private employees also have more presence when
compared to Entrepreneurs and Govt employees. 66% are Students followed by 18% Private employees and
others. This shows that Students are the most frequent users of online grocery shopping.
20
4.5 PURCHASE OF GROCERIES ONLINE
50
No: of respondents
40
30
20
10
0
Yes No Maybe
Purchase of groceries online
Frequency Percent
INTERPRETATION
The above bar graph shows the percentage and frequency of online grocery purchase in Ernakulam. The
percentage of people who responded yes to online grocery purchase is 34%. At the same time, the percentage
of people who do not prefer online grocery is 50% and it is the highest of all. Around 16% of the respondents
may prefer online grocery shopping.
21
4.6 PLACE OF PURCHASE OF GROCERIES
70
60
No: of respondents
50
40
30
20
10
0
Supermarket Provisional shops Retail grocery stores Organic farms
Place of purchase of groceries
Frequency Percent
INTERPRETATION
The above multiple bar diagram shows the place of purchase of groceries offline by the respondents. The
diagram depicts that, out of 50 respondents, 35 people purchase groceries from supermarkets and 11
respondents from retail grocery shops. That means 70% of the respondents are purchasing groceries from
supermarkets, 22% of them are purchasing from retail grocery stores and only 6%, 2% of the respondents
purchase from provisional shops and organic farms, respectively.
22
4.7 GENDER * PURCHASE OF GROCERIES ONLINE
This objective focuses on finding the demographic factors. Chi square test was used to find the association
between income and online grocery store preference. The following are the null and alternative for this
objective
H0: There is no association between gender of the person and the purchase of groceries online
H1: There is an association between gender of the person and the purchase of groceries online
Count
Male 6 5 4 15
Total 17 25 8 50
Chi-Square Tests
N of Valid Cases 50
a. 1 cells (16.7%) have expected count less than 5. The minimum expected count is 2.40.
23
Gender*Purchase of groceries online
25
20
15
Count
10
0
Yes No Maybe
Purchase of groceries online
Female Male
INTERPRETATION
From the above table, it is inferred that p value is 0.230, which is greater than 0.05, the null hypothesis is
accepted, and alternate hypothesis is rejected at 5 % level of significance. Hence it is concluded that there is
no association between gender of the person and the purchase of groceries online.
24
4.8 GENDER * PLACE OF PURCHASE OF GROCERIES
This objective focuses on finding the demographic factors. Chi square test was used to find the association
between income and online grocery store preference. The following are the null and alternative for this
objective
H0: There is no association between gender of the person and the place of purchase of groceries.
H1: There is an association between gender of the person and the place of purchase of groceries.
Count
Male 9 0 5 1 15
Total 35 3 11 1 50
Chi-Square Tests
N of Valid Cases 50
a. 5 cells (62.5%) have expected count less than 5. The minimum expected count is .30.
25
Gender*Place of purchase of groceries
30
25
20
Count
15
10
0
Supermarket Provisional shops Retail grocery stores Organic farms
Place of purchase of groceries
Female Male
INTERPRETATION
From the above table, it is inferred that p value is 0.159, which is greater than 0.05, the null hypothesis is
accepted, and alternate hypothesis is rejected at 5 % level of significance. Hence it is concluded that there is
no association between gender of the person and the place of purchase of groceries.
26
4.9 INCOME LEVEL * PREFERRED GROCERY STORE
This objective focuses on finding the demographic factors. Chi square test was used to find the association
between income and online grocery store preference. The following are the null and alternative for this
objective
H0: There is no association between income of the person and the online grocery store that they prefer.
H1: There is an association between income of the person and the online grocery store they prefer.
Count
5 lakhs-10 lakhs 6 4 10
Total 30 20 50
Chi-Square Tests
N of Valid Cases 50
a. 3 cells (50.0%) have expected count less than 5. The minimum expected count is 1.20.
27
Income level*Preferred grocery store
25
20
15
Count
10
0
Upto 5 lakhs 5 lakhs-10 lakhs 10 lakhs and above
Income level
INTERPRETATION
From the above table, it is inferred that p value is 0.618, which is greater than 0.05, the null hypothesis is
accepted, and alternate hypothesis is rejected at 5 % level of significance. Hence it is concluded that there is
no association between the income of a person and the online grocery store they prefer.
28
4.10 ONE-WAY ANOVA- INCOME LEVEL AND PREFERRED GROCERY STORE
H0: There is no significant difference between Income level & Preferred grocery store.
H1: There is a significant difference between Income level & Preferred grocery store.
Descriptives
Income_level
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
ANOVA
Income_level
Total 16.880 49
Table 14 (One-way ANOVA Income level and preferred grocery store)
INTERPRETATION
From the above One-way ANOVA test, it is revealed that the p value is 0.437 which is greater than 0.05.
Therefore, the null hypothesis “There is no significant difference between Income level & Preferred grocery
store” is accepted. This indicates that the mean (average value of the dependent variable) is the same for all
groups.
29
4.11 CUSTOMERS’ EXPECTATIONS ABOUT ONLINE GROCERY STORES
Customers’ expectation
Convenience 4.34
INTERPRETATION
The above table of weighted average of expectations depicts that customers give most preference to Ease of
payment. The second preference is given to Convenience which means the convenience of purchasing
groceries online. They prefer Delivery on time as promised by the service provider. This is followed by
preference for Secure Packaging. This factor is highly relevant especially in the time of Covid-19 pandemic.
30
4.12 FACTOR ANALYSIS ON CUSTOMERS’ EXPECTATION ABOUT ONLINE
GROCERY STORES
The purpose of factor analysis is to reduce many individual items into a fewer number of dimensions.
df 45
Sig. .000
Component
1 2 3
Expectation- Quality of product .870 .073 .243
31
INTERPRETATION
The factor analysis revealed three key expectations of the customers regarding online grocery stores.
Factor 1 is named as Standards and it is a combination of variables such as Quality of product, Freshness of
item, Safety measures taken, Secure Packaging, and Delivery on time.
Thus, it could be identified that Standards, Utility, and Diversity are the key expectations of the customers.
32
4.13 GAP ANALYSIS
Gap analysis is to find out why customers experience low quality services. If the experience is lower than
expectation, then it shows a negative gap. For the factors which are having a negative gap, the company
should take necessary steps to meet their expectation. Here gap analysis is conducted to check customers’
expectations about online grocery stores and their experience with online grocery shopping.
Gap Analysis
PERCEPTION
FACTORS EXPECTATION (E) P-E SCORE
(EXPERIENCE) P
33
GAP ANALYSIS
0
-0.05
-0.1
-0.1 -0.1
-0.15
-0.25 -0.24
-0.26 -0.26
-0.3
-0.35
-0.4
-0.4
-0.45
Figure 10 (Gap Analysis)
INTERPRETATION
The above analysis reveals that in all the aspects, the online grocery stores could not meet the expectations of
the customers. But it could be observed that delivery on time is one of the aspects that have caused a huge gap.
The probable reasons for the same can be due to the lockdown restrictions imposed by the government to break
the spread of Covid-19 infection. The inefficient management of delivery routes could be another reason
for the failure in timely deliveries.
34
4.14 PREFERRED GROCERY STORE
60
50
No: of respondents
40
30
20
10
0
LuLu HyperMart Others
Grocery store
Frequency Percent
INTERPRETATION
The above multiple bar graph shows the preferred online grocery store among respondents. The graph depicts
that around 60% of respondents prefer LuLu hyper mart webstore to purchase their grocery. And 20% of
respondents prefer other online grocery stores.
35
CHAPTER - V
36
5.1 FINDINGS
• Most of responses were collected from the age group between 18-24.
• Among these responses 70% of the respondents are female.
• Income levels of most of the respondents were marked up to 5 lakhs.
• Among these respondents 66% are students, only 18% of them are private employees.
• 50% of the respondents prefer purchasing groceries offline.
• Half of the respondents does not opt for online grocery purchases, only 34% are likely for online
grocery purchases.
• Around 70% respondents prefer supermarkets for purchasing groceries offline.
• There is no association between gender of the person and the purchase of groceries online.
• There is no association between gender of the person and the place of purchase of groceries.
• There is no association between the income of a person and the online grocery store they prefer.
• There is no significant difference between Income level & Preferred grocery store.
• While choosing online grocery stores, customers give most preference to standards, utility, and
diversity. The online grocery stores could exceed the expectations of the customers in all aspects.
• More than half of the customers prefer to purchase online grocery from LuLu Hypermart.
37
5.2 CONCLUSION
As the research and analysis have come into the conclusion, we have managed to find most of the information
about the consumer satisfaction towards the online grocery stores during the Covid-19 pandemic. From the
above data analysis, it can be determined that most of the respondent would agree to buy grocery with the
traditional method rather than shopping of grocery online. We found out that the people were still reluctant to
the concept of online shopping or online delivery services. This could be because of the lack of acclimatization
towards the technology.
As per the analysis, the online grocery stores have failed to match the customers’ expectations. But the online
grocery delivery service is doing well helping the people to get their food products online especially during
the pandemic time. They can surely improve some of the factors like timely delivery, quality of packaging,
food quality, showing the manufactured and expiry date of the products they sell online etc.
But in future it is a fact that we would be having more online grocery delivery services and the decline of the
goods and services are inevitable.
38
CHAPTER - VI
39
6.1 SUGGESTIONS
40
BIBLIOGRAPHY
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https://m.dailyhunt.in/news/india/english/news+patrolling-epaper-
newspatr/bigbasket+company+profile-newsid-73815503
(2020). Lulu online delivery extended to 25 kms. Kochi: The New Indian Express. Retrieved from New
Indian Express: https://www.newindianexpress.com/cities/kochi/2020/mar/19/lulu-online-delivery-
extended-to-25-kms-2118455.html
Saleem, M., Khan, M. M., Ahmed, M. E., Ali , S., Shah , N., & Surti , S. R. (2018, April 12). Online
Grocery Shopping and Consumer Perception: A Case of Karachi Market in Pakistan.
Sathiyaraj, S., Kumar, A. S., & Subramani, A. (2005, June 1). CONSUMER PERCEPTION TOWARDS
ONLINE GROCERY STORES, CHENNAI. Retrieved from Research Gate:
https://www.researchgate.net/publication/322916738_CONSUMER_PERCEPTION_TOWARDS_O
NLINE_GROCERY_STORES_CHENNAI
Sharma, C. (2015, April). Consumer Perception Towards Online Grocery. Retrieved from world wide
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https://www.worldwidejournals.com/paripex/recent_issues_pdf/2015/April/April_2015_1429770119
__172.pdf
Srivastava, S. (2020, April 23). COVID-19 Effects on Grocery Business: How to Survive the Phase?
Retrieved from appinventiv: https://appinventiv.com/blog/coronavirus-effects-on-grocery-business/
41
APPENDICES
42
QUESTIONNAIRE
NAME :
18-24
25-34
35-44
45-54
55 and over
Private
Entrepreneur
Student
Others
43
INCOME LEVEL : Up to 5 lakhs
5 lakhs- 10 lakhs
Yes No
Supermarkets
Provisional shops
Organic Farms
3. What are your expectations about online grocery stores? Please select your level of agreement.
Freshness of items
Delivery on time
44
Good offers
Quality of product
Variety of product
Convenience
Ease of payment
Secure Packaging
4. If you have ever purchased groceries online, what are your experiences about online grocery stores?
Please select your level of satisfaction.
Freshness of
items
Delivery on time
Good offers
Quality of
product
45
Variety of
product
Good behavior
by the employees
Safety measures
taken
Convenience
Ease of payment
Secure
Packaging
5. Which online grocery store do you prefer the most during the pandemic?
Biggro
Cochin.biz
Foodro
Others
46