PROJECT REPORT

ON

CONSUMER PREFERENCE TOWARDS

E – GROCERY SHOPPING

Submitted in partial fulfillment of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Chhatrapati SahuJi Maharaj University, Kanpur

Under the Guidance of Submitted By

Dr. Amit Sharma Asha Suryavanshi

Assistant Professor Roll No: 0302445

BBA-VI SEM

Session2020-2021
 DECLARATION

I hereby declare that the Project Report entitled “Consumer Preference Towards E- Grocery Shopping”
submitted to PSIT College of Higher Education, Kanpur in partial fulfillment of Degree of Bachelor of
Business Administration is the original work conducted by me. The information and data given in the report is
authentic to the best of my knowledge.

This Project Report is not being submitted to any other University for award of any other Degree, Diploma and
Fellowship.

Name of Student: Asha Suryavanshi

Roll No: 0302445

 CERTIFICATE FROM INSTITUTE

This is to certify that the Project Report entitled “Consumer Preference Towards E Grocery Shopping” is a
bonafide work of Asha Suryavanshi (Roll No:0302445) BBA VI Semester and has been done under my
supervision in partial fulfillment of the requirement for the award of BBA Degree from CSJM University
Kanpur.

This report neither full nor in part has ever before been submitted for awarding of any degree/Diploma of either
this university or any other university. I am pleased to say that the performance of the student during the period
of report work was extremely satisfactory.

Dr. Shivani Kapoor Garima Gupta Dr. Amit Sharma

Director Asstt. Professor & HOD : BBA Asstt. Professor
Report Guide
 PREFACE

In today’s dynamic world , we find that practical knowledge is also important as theoretical knowledge .
So many times there may occur a gap between the practical and theoretical knowledge while going
through the field by experience .

B.B.A is a professional in the field of management practical study is an important task which plays a
vital role in the individual ’s growth . I , the student of PSIT college of higher education had
undergone a research project as an industry defined industry project on “ Consumer Preference
Towards E-Grocery ”.

As the use of internet is increasing day by day online shopping is also increasing . People tend to buy
online as it is convenient , time saving having services 24*7 . So , customers buy more and more
goods from online sellers.

Talking about Indian E-grocery market there are many online retailers who sell goods online .

Major players of Indian E-grocery are Grofers , Big basket , Amazon pantry , Farm2kitchen ,

Nature’s basket .
 ACKNOWLEDGEMENT

To acknowledge is a very great way to show your gratitude towards the process who has contributed
in your success in one or other way . Any accomplishment requires the effort of many people .

So , it is our prime duty to acknowledge the person who directly or indirectly helped us during
completion of this comprehensive project report . So I take opportunity to heartily thank my project
incharge respected Dr. Amit Sharma for his valuable guidance and touch of inspiration and motivation
throughout the project work without whose help the work would not have been in the shape what it
is .

I would like to express my acknowledgement to Dr. Shivani Kapoor (Director) ,Dr. APS Bhadauria
(Dean), Mrs. Garima Gupta (HOD) Of PSIT College Of Higher Education for the invaluable guidance
provided by them throughout the project .

Last but not the least , I would like to thank my college PSIT College Of Higher Education for giving
me this opportunity to do this project as a part of academic curriculum , so that I’ll be able to
improve my work ability and confidence for future professional career .
 TABLE OF CONTENTS

CHAPTER PARTICULARS
1. Executive Summary
2. Introduction

 What is E-Commerce?

 Purpose of study

 Outline of study
3. Background

 Why is there a need to know the customer buying

preference?

 Key drivers for success of e-commerce

 Online grocery retail

 Online grocery shopping

 Benefit of online grocery shopping

 Disadvantages of online grocery shopping

 How does online food and grocery shopping work?

4. Company Profiles
5. Literature Review
6. Objectives of the study
7. Significance of the study

 Advantages of e-grocery shopping

8. Research methodology

 Research scope

 GAP Analysis

 Research design

 Sampling

 Sampling technique
 9. Data Analysis &Findings
10. Recommendation
11. Limitations
12. Conclusion
13. References
14. Annexure

EXECUTIVE SUMMARY

The increase in technology provides good opportunities to the seller to reach the customer in much faster,
easier and in economic way. Online shopping is emerging very fast in recent years. Now a day the internet
holds the attention of retail market. Millions and millions of people shop online. On the other hand the
purchasing of product from traditional market is continuing since years. Many customers go for purchasing
offline so as to examine the product and hold the possession of the product just after the payment for the
product. In this contemporary world customer’s loyalty depends upon the consistent ability to deliver quality,
value and satisfaction. Some go for offline shopping, some for online and many go for both kind of shopping.
The focus of the study is on the consumer’s choice to shop on internet and at the traditional stores at the
information gaining period. However online shopping is easier for the people and less price than the offline
shopping. While making any purchase decision consumer should know the medium to purchase whether online
shopping or the offline shopping. Consumer should decide the channel for them which can best suit to their
need and wants and which can satisfy them. In this competitive world how consumer can decide the particular
medium for their purchase of goods is very important to understand in a managerial point of view.

Buying behavior means the purchase of good over internet using web browser. Online shopping also consist the
same five steps which is related to traditional shopping behavior .

INTRODUCTION

What is E Commerce?
Information communication technology and the Internet have contributed in changing the concept of business
these days. There is 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 other electronic mode
including telecommunication networks. Analysing the competitive advantage of E commerce it is observed that
it enables easier, faster and efficient business transactions compared to outdoor shopping. It helps in developing
low- costs leadership in existing markets and introduces product differentiation and mass customisation. For a
developing country like India E commerce offers considerable opportunity for growth.

The E-commerce sector in India is rapidly growing at a very quick pace in the new days and up to this present
day. This relentless growth of E-commerce is changing the way people assume, search, perform and bring up a
yield. Most consumers are adopting new technologies in shopping and with many of them being liberal thinkers,
want fast and efficient shopping while also considering other shopping attributes. Majority of companies in the
small scale, medium scale and large scale sectors own a website in order to improve their business and they do
so by employing online advertisements, online promotional events/activities thus taking a “digital” leap in the
business cycles. The convenience, needs, wants and comfort of the consumers and their buying behaviour and
the process of buying is the source of the relentless growth of E-commerce. Online shopping is growing very
rapidly in present days. People are changing the way they shop for goods or services. There has been a
tremendous shift from traditional shopping to online shopping. When it comes to online grocery shopping, due
to consumers’ busy work schedule, the innovative shoppers or early adopters are finding ways for the changing
technology to help them in newer ways of shopping. The emerging online grocery shopping is being
increasingly adopted by many consumers’ in urban areas. There are many factors which encourage people to
shop for groceries online, but it is not known what factors influence them to go for online buying of groceries.

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 Electronic Commerce 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 convey communicates 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
the 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 more efficiently reach existing and potential customers.
Although most of the revenue of online transactions comes from business-to-business commerce, the
practitioners of business-to-consumer commerce should not lose confidence. It has been more than a decade
since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce
constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the
development of E-retailing, researchers continue to explain Econsumers behavior from different perspectives.
Many of their studies have posited new emergent factors or assumptions which are based on the traditional
models of consumer behavior, and then examine their validity in the Internet context. This study is an attempt to
know the consumer perception towards purchasing grocery item through online.

PURPOSE OF STUDY

India’s e commerce market is worth about US$50 billion in 2020 about .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.As of
September 2020,the number of internet connectionns in India significantly increased to 776.45 million. The
Indian online groce10ry market is estimated to reach US$18.2 billion in 2024 from US$1.9 billion in
2019,expanding at a CARG of 57%.

OUTLINE OF STUDY

The project was undertaken to study the factors that influence the buying behaviour of consumers towards
online food retail compared to physical store in India. It had the following objectives:

 To study the preference of customers towards online shopping.

 To identify factors influencing consumer’s online purchase decision of goods and services.
 To identify issues related to online shopping from the customers point of view.
  To study the place preference of grocery and food shopping with respect to price, quality, variety, offers
and discounts.

BACKGROUND OF THE STUDY

In today’s world where in urban areas 90% of the people are working there is a need to find the required
grocery and food stuff in just one click. Many still prefer to go to physical stores and purchase such items
keeping in mind the freshness and authenticity of the goods and also factors such as physical examination of
goods etc. This method of selling online grocery and food items was started by Grofers and Big basket and now
since Amazon has also received a big nod from the government to enter into the food retail there is severe
competition. It has become very important for any company in this market to know the perceptions of its
customers, especially the urban people in this segment as they are always busy, running after money and hardly
get the time to shop for groceries and prefer buying these stuff through online mode rather than outdoor
shopping.

Why is there a need to know customer buying preference?

In today’s world the customer has been playing the vital role in deciding the role of the company and also its
existence in the market. There have been times where the company has not worked towards the needs, likes and
dislikes of a customer. So the companies need to have a report of the changing likes and dislikes of the
customer regularly, and work accordingly to completely fulfill the satisfaction of the customers which can only
be done by surveys and various other methods. Hence knowing the customer buying preferences is very much
important

Key drivers for success of E commerce

Reduction in operational costs as the entire business can be moved online, the need for physical stores has
become obsolete. Less infrastructural investment and associated labor costs drives up the profit margins. It is far
easier and quicker to compare prices online, arming the customer with the information to decide the right price
for themselves. With services like COD, the 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 Kanpur
to extend his reach to North Eastern 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 is open and the need to physically travel to shop.

Online businesses takes shopping a step further by taking itself to the customer creating conveniences of
shopping anywhere and at anytime. In India with 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.

Online Grocery Retail

This market refers to the e-commerce companies where they sell groceries and food items through online mode.
Eg- Amazon, Grofers, and Big basket.

Online Grocery Shopping

Providing that no sector of retail market is safe from online shopping revolution, it is now possible for the
humble hometown grocery store to become digitized and available on your smart phones, tablet or computer.
No longer 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 customers relationships with the food market and making a service that may have once felt
luxurious into an everyday convenience.

Benefits of Online Grocery Shopping

The primary benefit of online grocery shopping is that it is very convenient . By ordering online , one can
quickly search for the products she needs and order them without having to physically walk through miles. 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. It is
also very useful for those who do not own a vehicle or may be physically unable to move around easily, since
the food is delivered right in front of their doors. Today online grocery stores are increasing in popularity as
more and more people become comfortable with using the internet is increasing the purchases.
Disadvantages of Online Grocery Shopping

Perhaps the biggest disadvantages of online grocery shopping is 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 if deliver will take a day or two of essential foods available before he runs out. Another
disadvantage is that online shopping forces the customers 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.

How Does Online food and grocery Shopping Work?

Following is the basic parameter that determines the working of online food shopping.

Creating the website

The most important part of online grocery shopping is the website itself. The website should have a complete
list of groceries that are able to be delivered as well as the price for each item.

The website should have a "shopping cart" where a user can add item to a list of things to be ordered as well as
view and edit items that he is planning to purchase. Finally this website should have the ability for the user to
enter his address and pay for the order.

Filling the order and shipping

The next step 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 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 foods need to be placed in a vehicle and deliver to the

customer.

Restocking and Processing Payments

Clearly it is critical to ensure that all the items listed on the website are in stock and able to be shipped .As a

result, the stock room needs to be carefully checked to ensure inventory levels are sufficient.

COMPANY PROFILES

Grofers

Grofers is an Indian on-demand online grocery delivery service. It was founded in December 2013 and is based
in Gurgaon Grofers is a low-price online supermarket that gets products across categories like grocery, fruits &
vegetables, beauty & wellness, household care, baby care, pet care and meats & seafood delivered to your
doorstep. Here customers can choose from over 5,000 products at prices lower than supermarkets every day and
schedule delivery are also as per the customers convenience.

Amazon
Amazon is one of the biggest e-commerce industries and it recently entered the online food retail segment in
India named Amazon Fresh. It provides a wide range of food products at best prices, they also provide two hour
delivery of products such as fruits and vegetables. They deal with all kinds of gourmet food, daily essentials,
cooking, beverages, mushroom, truffles and many more.

Bigbasket

Bigbasket is an Indian online supermarket that enables users to shop groceries and consumer products. It was
founded in October 2011. The company is located in Bangalore, India and has an estimated revenue and
employee in the range of $50 to $500 million and 5001-10000 respectively.

The company’s platform provides an easy relaxed way of browsing and shopping for groceries, enabling users
to select and buy products of their choice within the comfort of their home or office.

Farm2kitchen.com

Farm2kitchen team is led by (founder and CEO), a woman entrepreneur who is committed to the
betterment of the lives of Indian families . She started Farm2kitchen with only one mission – to enhance the
quality of life Indian families. It deals with only organic groceries. They support organic farming and
agriculture as organic farming is a holistic approach to food production. Some of the cities which will be
covered under Farm2kitchen’s umbrella for organic food are- New Delhi, Mumbai, Bangalore, Kolkata, and
Gurgaon.

Nature’s Basket

Godrej Nature’s Basket is India’s pioneering and premium food destination from the 119- year young Godrej
Group. They started in 2005 as a single store in Mumbai and has now transformed itself into an omni-channel
retail business. They are present through physical retail stores across India in neighbourhood, this combined
with an online portal and a mobile application. Their aim is to redefine India’s freshest and finest food
experience by sourcing and serving the very best be it the freshest fruits & vegetables, authentic delicatessen,
the finest meats, irresistible bakery products and more. For them their customers’ needs come first and to serve
them better and offer the best in terms of quality, benefits, flavour and taste they have grown and nurtured their
brands over the years.
 LITERATURE REVIEW

The extensive literature review has been conducted to gain deeper understanding of research about online and
offline customer and their experience. The review clarifies and simplifies the dominant dimension consumer
consider when they make any online purchase decision. Following this, the major theoretical gap related to
understanding what and why consumers do, and do not purchase using the Internet is explored with respect to
the theories of retail change and consumer behaviour theory with particular reference to the buying decision
process. More specifically, the study examined the interrelationships among quality, value, satisfaction, and
loyalty when consumers choose to shop online.
"India is among the fastest-growing markets and has been identified as one of the significant potential
markets for the company,"

Muralikrishnan B., country manager at eBay's India explains that Indian consumers toward buying high margin
products such as clothes and shoes as is the trend among eBay shoppers in the West rather than electronic
gadgets and books, which are the most popular choices now but command lower profit margins and are less
frequent purchases.

He depicted that India's nascent e-commerce market, which till recently was largely limited to people buying
train, flight and movie tickets, is in the middle of a surge as a younger, tech-savvy middle class increasingly
takes to shopping online in a country seeing rapid growth in Internet usage.

Consulting firm Technopak predicts a $70-billion annual market by 2020, up from $600 million now, which is
just 0.05% of global online shopping. EBay itself estimates India's online shopping market in 2012 will grow
close to 100%.

Review Studies of Related

Vijayasarathy (2004),in his research used a sample of 281 consumers to test a model of consumer intention to
use on-line shopping. The study found compatibility, usefulness, ease of use, and security to be significant
predictors of attitude towards on-line shopping, but privacy was not. Another finding showed that intention to
use on-line shopping was strongly influenced by attitude toward on-line shopping, normative beliefs, and self-
efficacy.

Rainu Tan veer Singh (2012),he was undertaken the project in Nirala Imex Inc. in Taiwanese market in selling
of Indian grocery items to the local retailers & wholesaler in the Taiwanese market. The project first studied the
attitude of customers towards online shopping, alsodetermining the factors which influence the consumer to
purchase goods and service.The second half of the project depicted the attributes of online shopping influencing
thepurchase decision by the respondent. It also determined the issues regarding the onlineshopping.The third
part of the project determines the purchase decision with respect to grocery. It determined the place preference
of grocery shopping with respect to price, quality, variety,proximity and offers/ discounts.The project also
recommended the business operational plan which works with contracting dealership with the local Kirana
stores.

Chaing and Dholakia (2014) carried out a study in which they examined the purpose the customer to purchase
goods online during their shopping. Mainly there are three variable in their study those affects the consumer to
purchase online or to go offline. Those are the accessibility features of the shopping sites, the type of the
products and their characteristic, and the actual price of the product. The study revealed that the accessibility
and the convenience of the shopping sites create the intention in the customer to purchase or not. When there
are difficulty faced by a consumer to purchase online then the customer switch to the offline shopping for the

Purchase behaviour and the consumer face difficulty in offline purchasing then they go to the online purchasing.
After relating both the medium of shopping the consumer said that the online shopping is more convenient for
them and gives more satisfaction which inspires the consumer to purchase online in the internet.

Iyer and Eastmen (2014) found that the population of senior who are more literate, more knowledgeable and
who are more aware of the technology and those who have a positive behaviour towards online shopping and
internet are more into online shopping. But the population of senior who are less aware of the internet and the
shopping sites are less involved in the shopping sites because they do not have a positive attitude towards online
shopping rather they are much more interested in offline shopping and the seniors who are more involved in the
internet uses more online sites for purchasing the goods over the internet. The senior which have more
knowledge about the internet and the shopping sites they compares both the shopping i.e. online and offline
shopping for their purchasing of goods. However their knowledge and the use of internet by them has no
connection with their age and their satisfaction level while purchasing online.

Danaher et.al (2003) focused on the loyalty of the 100 brands over the online shopping and offline shopping of
19 product of the grocery. They compared the grocery items of both the shopping with starting model which is a
new segmented of Dirichlet model, this model has very dominant features which gives the exact classes for the
brand choice and also gives the real model for the purchasing behaviour. The outcome of the study revealed that
the reality of the high brands by the high market shares bought the online shopping much

greater than the expected. But in case of the small share brand it is just reversed. However in the traditional
shopping the expectations and the observations is not at all links to the brand share.

Tabatabaei (2009) has explored the opinion of the consumer who are purchasing online and the consumer who
are purchasing from offline market. The objective is to know why the traditional customer chooses to shop
online and what are the factor influence then to purchase online and what are the factor for them to not use the
sites for shopping. He has done a survey of 264 respondents in a small mall and then those data were analysed
by him. All the customer of this study is literate and has knowledge on computer and internet. The survey
consists some of the question like demographic profile, computer knowledge and the knowledge over the
internet. The outcome of the study was that the consumers of online shopping use to shop online more than one
time in a month and the consumer of offline shopping shop one to five times in a year from shopping sites.

Chaing and Roy (2003) focused on the consumer choice to shop on the internet and at the physical stores during
the information acquisition period. A convenience sample of 34 students enrolled in undergraduate marketing
class to select the product for testing, 56 products were developed based on the popularity of online shopping.
The result shows that the consumer perceives shopping offline as inconvenient, online shopping intention was
expected to be greater for search products than experience product.

Soopramanien and Robertson (2007) conducted a study in UK on acceptance and practice of online shopping.
Their exploration shows that the online consumers choose different course of action based on the apparent
beliefs. They found that, how socio demographic variables, attitude and beliefs towards internet shopping
effect on the both decision to practice and use of online shopping channels. They categorised online buying
behaviour as the one who purchase from online sites and the one who only browse online sites and purchase
from the store, and third those who do not buy online. The study do not covered the buyers who choose
products in stores and buy online.

Jin and Kato (2004) attempted from that eBay market watch 88% of online graded cards are graded 8 or above.
According to Beckett price guide, the value of a card grade 8 often doubles the value of card graded 7. This is
collective to the experiment outcomes. It was clear that most graded cards traded online are significantly
superior in quality than ungraded cards in both retail and online market.

Selvakumar (2014) concentrated on consumer’s perception of the product sold online and the issues considered
important to online shopping. This study was conducted among the online shoppers at Coimbatore which is in
Tamil Nadu state. It is to analyse the impact of consumer opinion and the attitude. Questionnaire was made to
collect the data from the population; these questionnaires were given to college going students. The total sample
size is 150 respondents. The finding of this study shows that improvement and accessibility influence the
customer’s intention to shop online.

Hausman and Siekpe (2009) analysedan practical study in US regarding the effect of web interface features on
consumer online purchase intention. E-commerce system is different from traditional information system. It has
both features of information system and marketing channels. It contains machine and human element. An
empirical finding shows that to know the motivation factors for online shopper, cognitive and psychological
factors do have meanings. The study finds both human and computer factors are necessary for antecedent for
online shopping.

Koo et.al (2008) have conducted an empirical study, they examined the motivational effects of personal values
on benefits, attributes, and re-patronage intention in the perspective of shopping online. The study conclude that
personal values of social affiliation and self- actualization serves as underlying beliefs in shaping, consumer’s
online shopping motives. In addition online store attributes are positively related to pre-patronage intention.

Suki and Suki (2007) conducted their study in Malaysia. This study is an empirical study. They create a model
in which they are identifying the influence of the real value, the real risk and the actual enjoyment of the
consumer of online shopping. The consumers who are adopting the online shopping they are in the prominent
risk and the prominent indicators. The consumer of Malaysia of online shopping has a perception about the
involvement of risk in shopping and their risk is mostly related to the security and the privacy. It includes the
security and privacy of the personal information of customer ,transaction of online shopping, the quality of the
product and the uncertainty about the product whether the product willreach the consumer or not.

Liu et.al (2008) addressed an empirical study on Chinese customers for shopping online. They proposed a
model of satisfaction process in the e-commerce environment. The research work was limited to single country
and may not be directly applicable to western countries. The outcome of this study shows that customers
services are strongly, predictive of online shopping customer satisfaction. Further delivery and customer service
is very important role in Chinese market. The wide range of commodities and competitive price is important,
because online customer can compare the price in one click. Detailed and complete product information should
be given because buying decision is only made with the decision available online. The first impression is the
design of website, its content. This can improve customer satisfaction.

H and Hsu (2008) conducted a study in Taiwan. Online shopping conditions are different from regular shopping
in many ways. Shopping site look and fulfilment systems is like front employee, second, every online deals
involves number of third parties, such as credit card clearance companies, and delivery firms. So, a new
customer satisfaction index is required, to quantity customer satisfaction in online atmosphere. The new model
customer expectation is substituted by trust and facilities quality is exchanged by e-SQ. One more
supplementary relationship introduced which is form trust to customer faithfulness. The outcome shows that
customer satisfaction is most important features that decide online customer loyalty. Online Trust makes a
positive impact on perceived value, customer satisfaction and customer loyalty. This result suggests that e- SQ
might be more significant than other factor. There are some deficiency of study, i.e. it is based on one -site
random sample scheme which limits the generalizability.

Kim H R (2005) examined an empirical study in UK to develop an index of online customer satisfaction; this
study integrates and applies the concept of satisfaction from three field’s i.e. marketing, management
information system (MIS) and e-commerce. The main function of this paper is an exploration of the factors
affecting satisfaction. The results show that ten factors on index are good exponent of satisfaction repurchase
behaviour and repurchase intention.

Hartman group (2015) is of an opinion that Brick & Mortar stores will not completely get off the market but
few shoppers are getting over the conventional notion of doing grocery. Important point to ponder over is the
idea that, will online grocery shopping become acceptable and provide share of wallet from a good number of
consumers? Hartman Group (2015) report states that online grocery shopping helps early adopters save around
39% of their time, 36% of money and around 27% of fuel. In order to widen the scope, online grocery needs to
focus on under stated areas:
• Target Households: young urbans and families

• Meet Underserved Needs: highlighting convenience

• Look for Cultural Hooks: try to get monthly subscriptions etc.

Online grocery shopping helps buyers eliminate the activity of physically visiting the stores, providing
convenience to get things delivered on a single click, no standing in long lines and no carrying of heavy bags.
They also reduce unnecessary shopping habits and picking extra items while shopping in a store. It will quickly
grab the attention of consumers who are procrastinators and are not fond of visiting the stores. While people
who visit physical stores in terms of outing and for fun will still prefer brick and mortar stores, unless they find
some super quick delivery or discounts or coupons or other order processing conveniences. However,
considering the food culture it is evident that digital food will make its place and technology will help earn
greater shares. (Hartman Group, Forbes, 2015).

Sabari Shankar R and Nareshkumar S (2018), in their study, they said that the online shopping has become an
integral part of consumer. To understood the impact of demographic factors on consumer perception of online
grocery shopping. Research methodology is the collection of methods which are used to perform research.
Simple percentage analysis has been used to find and analyse the response percentage to the factors of the
survey. The concluded that there are the major few factors are influencing the factors of purchasing through
online.

S.Sathiyaraj, et.al (2015), in their study, the author’s introduce that, the increasing use of internet by the
younger generation in India provides an emerging prospects for online retailers. The main objective of their
study is to find out the preference of the consumers regarding by the consumer while online shopping. The
author collected the primary data using structured questionnaire by survey method from 200 respondents.
 OBJECTIVES OF THE STUDY

 To study perception of customers towards online shopping .

 To find out the preferences of the consumer regarding the attributes of online shopping website.
 To determine whether online grocery is beneficial and on what factors.
 To determine the parameters for choosing the e –grocery for purchase of grocery items.
 SIGNIFICANCE OF THE STUDY

With the advancements in technology , the usage of internet has becoming more and popular day to
day . Internet is not only a tool to pick up information about anything else . It is now the biggest ‘sell
and shop ’ platform for everything that you can imagine to make a purchase of . As people are getting
busier with their day-to-day personal and professional responsibilities , buying online grocery has caught
fancy to them . On other hand , it is soon going to be a major hit in each tech - adroit in individual’s
life .

ADVANTAGES OF E- GROCERY SHOPPING

 It saves time .
  No unwanted luxury purchases .
 Find everything you need .

RESEARCH METHODOLOGY

RESEARCH SCOPE

 To determine which factor influences the consumer to go for online shopping.

 To find out which feature of the company attracts the user to purchase the product from thee-store.
 To find out whether the grocery online shopping is beneficial for the user.
 To analyze which factors influence the user to buy online grocery.

GAP ANALYSES
The present research is proposed to study and analyze the factors which influence the preference of consumer
with respect to online grocery in KANPUR .

Studies on analysis of consumer’s preference found from time to time. The studies have given a mixed
outcome which at times were positive and at times negative. In view of this there is ample scope for a new
study to analyse and study the consumer’s preference.

The revelation from survey of literature make it evident that consumers are becoming more and more aware
about online grocery services and there is a trend and a will among them to go for it. A study on this aspect is
necessary to update the knowledge regarding the same.

RESEARCH DESIGN

The sources of data used in this Market research will be both primary and secondary data.

Primary data- It will consist of original information gathered from a sample of around 90-100 respondents
residing in Kanpur, India.

Secondary data-It consists of information that already exists and that which was collected in the past for some
other purpose.
SAMPLING

Sampling Design

Sample size- The sample size selected for the research is 100 in the area of Kanpur.

Parameters of interests-The major parameter of interests is the subgroup of people who are professional
workers , students and engaged in self- service as they prefer buying most of their goods online and have an
experience in online grocery shopping.

Sample unit

 Working people (men and women)

 House makers
 College students
 Senior citizens

Sampling Technique

Quota Sampling – It is a method for selecting survey participants. In quota sampling, a population is first
segmented into mutually exclusive subgroups, just as in stratified sampling. Then judgment is used to select the
subjects or units from each segment based on a specified proportion.

DATA ANALYSIS AND FINDINGS

DEMOGRAPHIC OBSERVATION

GENDER

Male

Female
Interpretation

The above diagram depicts that out of the 100 respondents 40.6 % of the respondents were females

and 56.4% were men as our objective was to know the consumer behaviour of both men and women

as to infer from it, it’s necessary to know the response of both the genders.

OCCUPATION

Student

Salaried

House maker

Self employed
Interpretation

The above diagram illustrates that the maximum number of respondents are self employed and

students and rest are salaried and house maker . As our goal was to study mostly the behaviour

pattern of these groups because they are the one’s running after money and find it hard to take out

time for grocery shopping and prefer doing it online.

AGE OF RESPONDENT

Below 18

18-25

25-35
Above 35

Interpretation

The above diagram illustrates that the maximum number of respondents were aged 18-25 and then 25-35 as this
is the age group where people are more tech savvy and prefer buying things online instead of stepping out.

Q1. Do you prefer online grocery shopping ?

Yes

No
Interpretation

The above figure illustrates that 89.1% people shop grocery online.

Only 10.9% do not shop online grocery.

Q2. Where do you shop for grocery items?

Ration shops

Sabzi mandi

Supermarket
 Online store

Interpretation

Respondents have mostly agreed that they shop most from online sites and then super marts then ration
shops and sabzi mandi.

The figure above illustrates that 42.6% of respondent buy grocery from online store ,36.6% people buy from
super market ,10.9% of respondent buy grocery from ration shops and 9.9% buy from sabzi mandi.

Q3.How much money do you spent in online shopping ?

  100-500

500-2000

2000-5000
 5000 and above

Interpretation

The figure above illustrates that the maximum number of respondents spend an amount of Rs 2000-5000 in
their every purchase and an amount Rs 500-2000 monthly
Q4.How well the online grocery products meet your needs ?

Extremely well

Very well

Somewhat well

Not so well

Not at all

Interpretation

The above figure illustrates that online grocery shopping meets the needs of people extremely well.

75.2% respondents agree that online grocery shopping meet their needs extremely well.
Q5.How would you rate the quality of the product ?

Very high quality Very low quality

Interpretation

The above diagram illustrate most of the people have rate the quality of products very high.

Very few are there who rated low quality.

Q6. How often do you do your grocery shopping online ?

 Weekly

Monthly

Every few months

Only on special occasions

Never

Interpretation

From the above figure we can conclude that there are 44.6% of people do their shopping every few months
27.7% monthly while 7.9 % are those who shop online grocery weekly and 16.8% of people do online grocery
shopping only on special occasion and very few are their who never shop online grocery.

Q7.Which of the following describes your reasons for grocery shopping online ?

My preference supermarket is too far away

Online grocery shopping is easier for me as I don’t have to carry heavy bags

Online shopping helps me to order items in bulk

 My local shopping centre doesn’t meet my needs

Other

Interpretation

The above figure illustrate that 31.4% people do online grocery shopping because it is easier to them as they
don’t have to carry bags , 29.4% do shopping as their preference for supermarket is too far away, 17.6% people
shop online because their local shopping centre doesn’t meet their needs, 15.7% of people do online shopping
because it helps them to order items in bulk while 5.9% of people do not prefer online grocery shopping.

Q8.Which best describe the type of grocery shopping you do ?

Main grocery shop

Top up shop

Special occasion
 Bulk buy shop

Interpretation

The above figure depicts that around 58.4% of respondents do bulk buy shopping, 15.8% on special occasions,

13.9% top up shopping and 11.9% main grocery shopping.

Q9.Do you feel that online grocery shopping is beneficial ?

Yes

No
 Maybe

Interpretation

The above figure illustrates that 88.1% people have agreed to online grocery retail being beneficial to them.

5% have disagreed to it.

6.9% have said that may be it is beneficial or may be not.

Q10.If yes why do you think is beneficial?

Easy to order

More variety

Discount and offers

Saves time

Easy return

Interpretation

The above figure illustrates that 26.7% people thinks that online grocery shopping is beneficial because it gives
discount and offers at great extent ,25.7% respondent agree that online grocery shopping is beneficial it serves
more variety, 22.8% people think it saves time, 12.9% respondent agree because of easy return benefit,11.9%
respondent agree because for them it is easy to order online grocery.

RECOMMENDATIONS

 From the collected data we can observe that there is an increase in the number of respondents in online
shopping as there is increasing awareness about this concept in the market and the will to try it.
 There are various variables like age gender education and many more affecting consumer behavior and
online grocery shopping.
  There are different online grocery sites like grofers, nature’s basket, amazon, bigbasket,
farmtokitchen.com etc that influence consumer behavior.
 Certain parameters that motivates the user to shop online are:
 Easy to order
 More variety
 Discounts and deals offered
 Saves time
 Comparison can be made between traditional grocery shopping and online grocery shopping.
 Physical examination is one of the primary issues in online buying which determines the tangibility of
the product
 The data depicts that super marts are the preferred shopping destination where customers prefer to buy
their requirements as it offers all the basic aspects as Price, Quality, Variety etc
 From the above data collection we can determine most of the respondents agree to buy grocery online if
the option is given
 The data also determine the factors which are beneficial for the consumer to shop grocery online which
are variety, saves time and energy ,easy return option and avoids travelling and waiting in long queues.
 It can be recommended that online grocery shopping is more influencing consumer preference in
comparison to traditional grocery shopping.

LIMITATIONS

i. The first limitation caused during the market research was to find out the respondents who shop online
and are web savvy.
ii. The second limitation caused during the research was searching professionals who shop grocery
products along with the experience of online shopping.
iii. Other limitation caused in the market research was that the research will only study the consumer
perception towards online grocery shopping and not the dealers, wholesalers, retailer’s perception
towards online shopping which acts as an agent to the online retail industry support its business
operations.
 CONCLUSION

From the above data analysis we can conclude that consumer buys goods from the online shopping website on
the basis of factors like variety and value of online products, discount and offers. From the above data analysis
it can be determined that most of the respondents would agree buy grocery online rather than shopping grocery
the traditional way. Out of the agreed respondents to buy online grocery most of the respondents think that it
would be beneficial to shop grocery online on the basis of factors like time saving, can be ordered in bulk better
quality with reasonable price. We can also conclude by saying that there is a still huge scope on online grocery
to grow in India and research shows that it is already growing as more and more consumers are being aware of
it

Consumer’s perception towards online grocery shopping is affected by various factors. Since, grocery is
required for all households and individuals are recommended to conduct the research on consumer’s perception
which would be influenced by changing economies and other factors and showing an inclination towards online
grocery shopping.
FUTURE SCOPE

Experts have predicted a promising and glorious future for E commerce in the 21st century. In the foreseeable
future E commerce will further become a major tool for sale of commodities. Day by day with the advancement
of technology E shopping is becoming more natural and popular. Simultaneously , severe rivalry in the sector
of E commerce services will intensify. Thus prevailing future trends of E commerce will be the growth of
Internet sales and evolution.

Each year number of E commerce service and deals grows largely. Sales volumes of online stores are more than
comparable with those of brick and mortar ones. And the trend will continue as a lot of people who are
burdened by work and household duties will avail the services as it is time saving and saves efforts of actually
having to go and shop.

The quantity to quality tendency of E commerce is also becoming more obvious as it has removed geographical
factors from sale (irrespective of where the seller is situated he can sell) . To increase their customer base E
store owners will have to strategies and plan accordingly to pay more attention to such elements like appealing
goods presentation, attractive design , they will have to employ modern technologies for their business to
become parts of E commerce in future.
 REFERENCES

Reference links

IUP journal of marketing management

Journal of Business Strategies

http://www.vccircle.com/500/news/grocery-e-tailing-start-ups-a-dime-a-dozen-butinvestors-wary

http://www.iosrjournals.org/iosr-jbm/papers/Vol20-issue2/Version-5/D2002051831.pdf

Web links

https://eprajournals.com/jpanel/upload/806pm_13

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2285350

https://surface.syr.edu/ischool_other/57/

http://trak.in/tags/business/2011/08/23/india-online-internet-users-survey-report-2011/
http://www.boston.com/business/blogs/global-businesshub/2012/03/the_sizzling_in.html

http://www.firstpost.com/tech/indias-e-commerce-market-to-touch-260-bn-by-2025-report255350.html
 ANNEXURE

Q1.Do you prefer online grocery shopping?

Yes

No

Q2. Where do you shop for grocery items?

Ration shop

Sabzi Mandi

Supermarket

Online store

Q3.How much money do you spent in online shopping?

100-500

500-2000

2000-5000

5000 & above

Q4. How well the online grocery products meet your needs ?

Extremely well

Very well

Somewhat well

Not so well

Not at all
Q5. How would you rate the quality of the product ?

Very high quality Very low quality

Q6. How often do you do your grocery shopping online?

Weekly

Monthly

Every few months

Only on special occasions

Never

Q7.Which of the following describes your reasons for grocery shopping online?

My preference supermarket is too far away

Online grocery shopping is easier for me as I don't have to carry heavy bags

Online shopping helps me to order items in bulk

My local shopping centre doesn't meet my needs

Q8.Which best describe the type of grocery shopping you do?

Main grocery shop

Top up shop

Special occasions

Bulk buy shop

Q9.Do you feel that online grocery shopping is beneficial ?

Yes

No

Maybe

Q10.If yes why do you think is beneficial

Easy to order

More Variety

Discount & offers

Saves time

Easy return