CHAPTER - I

INTRODUCTION

1.1 ABSTRACT

Retail sector is the most booming sector in Indian economy and it is presently largest
employer sector after agriculture. Some economists say that retailing is one of the pillars of
the economy in India. With over 18,000 products and over a 1000 brands in our catalogue you
will find everything you are looking for. Right from fresh fruits and vegetables, rice, spices
and seasoning to packaged product, beverages, personal care products, meat and many
products are available. Nowadays consumers want the cheapest, biggest and quickest product
from their retailer. They are moving towards the eastern model retailing revolution. Day by
day consumers buying behaviour are changed due to the increasing income is affecting the
purchasing of the product. The survey intends to analyze the factors which are influencing
online customer buying behaviour in fruits and vegetables sector, another part is why the
customer attrition in big basket retail industry.

The study was done under the title of “customer buying behaviour and factors influencing
in online shopping of fruits and vegetables in Chennai” based on survey done by customers of
big basket. Big basket is a new type of market which came into existence in India since 2011.
It is the type of market where various kinds of products are available under one roof. The
present study focuses on the consumer buying behaviour towards the purchasing of fruits and
vegetables in big basket online retailing company. It also focuses on the customer attrition
towards online shopping of fruits and vegetables in the study area. It also focuses on the
customer complaints analysis in the study region. For the purpose of this project, Descriptive
cross sectional research design has been followed. A Descriptive research design is the one
which is description of the state of affairs as it exist at present. It includes survey and fact
finding enquires of different kind. The researcher has no control over the variables. The
researcher used this research design to find out the respondents opinion. Sometimes these are
referred to as “co relational” or “observational” studies. Descriptive studies can involve a one-

1
time interaction with groups of people (cross-sectional study) Descriptive studies, in which
the researcher interacts with the participant, may involve surveys or interviews to collect the
necessary information.

This study describes the customer buying behaviour and the reasons of customer attrition
at a particular point of time during study period. Data have been collected only once from the
respondents, so it is descriptive cross sectional research design The project involves main
objective is customer attrition in online shopping of fruits and vegetables in Chennai and we
can find that the majority of the customers are complaints of the quality of the fruits and
vegetables and price of the fruits and vegetables is higher compare to the other competitor.
We finally conclude that the big basket required more attention on the customer given
importance factor for purchasing fruits and vegetables and try to maintain the existing
customers as long possible for better sale and decreasing customer attrition; if the one
customers are dissatisfied they drop the other customers, if the customers are satisfied so they
talk to positive things to their friends and relatives

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1.2 INTRODUCTION OF THE STUDY

The word ‘Retail’ is derived from the French word ‘retailer’, meaning ‘to cut a piece
off’ or ‘to break bulk’. In simple terms, it implies a first-hand transaction with the customer.
Retailing involves a direct interface with the customer and the coordination of business
activities right from the concept or design stage of a product or offering to its delivery and
post-delivery service to the customer. According to “Retailing includes all the activities
involved in selling goods or services to the final consumers for personal, non-business
use.Bigbasket.com is India’s largest online supermarket and allows a customer to walk away
from the drudgery of grocery shopping and welcome an easy relaxed way of browsing and
shopping for groceries. The company currently operates from Bangalore, Chennai and has a
diverse portfolio that carries more than 18,000 products and over 1,000 brands. A majority of
this market is likely to be concentrated in the urban cities in the country.

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1.3 COMPANY PROFILE
ABOUT COMPANY
Big Basket is one of the largest online grocery super market in India. It was founded in
2011 by Hari Menon, VS Sudhakar, V S Ramesh, Vipul Parekh and Abhinay choudari. It has
its headquarters in Bengaluru. It operates in more than 30 cities in India. Big basket offers
variety of products ranging from fresh fruits, vegetables, Food grains, oil, masala, packaged
snacks, beverages, household supplies, healthcare products. It has more than 20000 products
and 1000 brands in its catalogue.

Customers order groceries through online website which will be delivered to their doorstep.
Bigbasket has a valuation of 1.8 Billion dollars. It has reached unicorn status. The investors
include Alibaba Group, Abraaj Group, Ascent Capital, Bessemer Venture Partners, Brand
Capital, Helion Venture Partners, ICICI Venture, IFC Venture Capital Group, LionRock
Capital, Paytm Mall, Sands Capital Management, Sands Capital Ventures, Trifecta Capital
and Zodius Capital.

HISTORY
BigBasket was founded by V.S Sudhakar, Hari Menon, Vipul Parekh, Abhinay Choudhari
and Ramesh in 2011. In 2011 they launched bigbasket online grocery delivery service.

In March 2019, BigBasket raised $150 million in investment from Mirae, Alibaba

Group and CDC Group giving the company a valuation of over US$1 billion. In March 2020,
they acquired micro-delivery firm, Daily Ninja. In February 2021, the Tata Group acquired a
64.3% stake in BigBasket for around ₹9,500 crore (US$1.3 billion).

CONTROVERSY
In October 2020 bigbasket faced a data breach that affected the data of over 2 crore
customers which includes email IDs, full names, IP addresses.Later as per Cybersecurity firm
the database was on sale on the dark web

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 Trade name BigBasket

Type Private

Industry Retail

Founded 2011

Hari Menon, V.S. Sudhakar, Vipul Parekh, Abhinayss Choudhari, V.S. Ramesh
Founders

Headquarters Fairway Business Park, Embassy Golf Link, Challaghatta, 

Bangalore, Karnataka
, 
India[1]

Area served India

Services Grocery Delivery

Owners Tata Group (68%)

Website www.bigbasket.com

Chennai Address:
DRR Avenue, No 2,3&4 Audco nagar,
Kattupakkam,Poonamalle,
Chennai-600056
Tel: 1860-123-1000

1.4 REVIEW OF LITERATURE

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 S. Sathiyaraj, A. Santosh Kumar and A.K. Subramani have conducted a research in
Chennai targeting 200 respondents through Google forms. The basic purpose of this research
was to understand consumer perception towards online grocery shopping in Chennai. The
major findings suggest that a larger number of people prefer online shopping due to best price
that they get and also that the demographic variables don’t have a significant impact on
customer satisfaction.

Another significant contribution was made by George Adamidis (2006) where the
survey was conducted in Nicosia. The instrument used for the survey was a self administered
questionnaire and the findings indicated that the consumers were not very receptive of the
concept of e-grocery due to the element of risk involved in shopping online. It was further
concluded that quality of the product and money back guarantee can be implemented and
demonstrated as a major risk relievers to promote online grocery shopping among the
consumers. However the paper fails to elaborate the element of risk and also what are the
other factors that restrict the adoption of online grocery shopping. US researchers at the
University of Maine have been observing the consumer behavior towards purchase of food
and drinks online. The major factor that influences the purchase is the quality and variety of
products available online as compared to locally available products. Though it is significant to
analyze that whether the results of the food and drink could be compared to that of online
grocery shoppers or not. Bell et al (1998) concludes in their research paper that the higher
amount of delivery fees charged by the etailers makes it difficult for them to avail its services.
The study focuses on the fixed and variable cost structure of the consumers who purchase
groceries online. The study further compares the cost structure with the offline cost and it is
concluded that a number of costs like petrol, parking, travel time, etc are much more as
compared to the delivery charges that a consumer has to pay. And it was concluded that there
isn’t much difference between the offline cost and the delivery charges hence the customers
shouldn’t deter from online grocery shopping. A study on frequency of online grocery
purchase was conducted by Radka Bauerová to measure the effectiveness of online services
and to analyze consumer decision making. The study focused on the number of times
customer used online grocery for purchase and also for the different category of products for

6
which the purchase is made. The purpose of the research paper was to identify the set of
products which are preferred by the consumers for purchasing online and whether there are
any repeat purchases for the same. The test results indicated that the in general delivery
conditions. On the basis of the literature review four factors have been identified for
measuring consumer perception towards big basket that are perceived price, quality, service
and benefits. All the four independent factors are further analyzed on 5-6 statements to check
the effectiveness and impact on the dependent factor

CHAPTER - II

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 METHODOLOGY

2.1 OBJECTIVES OF THE STUDY

1. To study the various factors related to online purchase with respect to Big Basket
2. To measure the impact of various factors with reference to online purchase on the
overall purchase of consumers.

2.2 RESEARCH METHODOLOGY

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 This is a cross sectional attempt by researcher to understand the level of perception
regarding the various aspects like perceived quality, perceived price, perceived level of
service and perceived benefits. Here researcher evaluates the impact of all independent
variables on dependent variable i.e. overall outcomes. This is unique attempt made by
researcher trying to derive new conclusions with fresh collection of data in different
geographical region, demographic profile and with different techniques. Therefore the
descriptive cross sectional research is obvious choice of researcher.

Nature of data
The study was based on survey method. The theme of the study was to find the main
factors influencing job satisfaction of customer buying behaviour and factors influencing in
online shopping of fruits and vegetables on Bigbasket in Chennai . The study is based on
primary data.

2.2.1 Sources of Data

Primary data
Primary data are those data that are collected a fresh for the first time and that original
in nature. The primary data is collect through questionnaire.

Secondary data
Secondary data are those data that have been collected by some one else and which
have already been passed through the statistical process. Secondary data here has been
collected from company profile, product profile of the company, newspapers, magazines and
general discussion with company per channels.

2.2.2 Sample size

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 Samples were collected from employees and workers in which the total sample size of
both is 150.

2.2.3 Sample design

A sample design is a definite than for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for the
sample i.e., the size of the sample. Same design is determined before data are collected. There
are many sample designs from which a researcher can choose.

Convenience sampling
The sample units are selected according to the convenience of the investigator or
researcher. A sample obtained from per month customer and temporary consumers who have
previous dealing with the dealers and company. It is one in which he only criterion for
electing the sampling unit is the convenience of the samples.

2.2.4 Research Design

This is a cross sectional attempt by researcher to understand the level of perception
regarding the various aspects like perceived quality, perceived price, perceived level of
service and perceived benefits. Here researcher evaluates the impact of all independent
variables on dependent variable i.e. overall outcomes. This is unique attempt made by
researcher trying to derive new conclusions with fresh collection of data in different
geographical region, demographic profile and with different techniques. Therefore the
descriptive cross sectional research is obvious choice of researcher.

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 CHAPTER - III
ANALYSIS AND INTERPRETATIONS
3.1 DATA ANALYSIS AND INTERPRETATION
1. TO STUDY THE SOCIO ECONOMIC PROFILE OF CUSTOMERS

Table 3.1 To study the socio economic profile of customers

Table 3.2 Awareness of online shopping of Fruits and vegetables among customers

From the above table represents the Awareness of online shopping of Fruits and
vegetables, here 31.33% customers are aware through newspaper, 24.67% customers are

11
aware through friends, 22.67% customers are aware through advertisement, and remaining
21.33% customers are aware through relatives. So we can conclude that the majority of
customers are aware through newspaper. Added to that the 2nd most influencing source of
awareness for online shopping behaviour is friends.

So, referencing and positive word of mouth through friends and relatives hold great
importance and the customers who have stopped purchasing from Big Basket through online
mode surely had some sort of grievance/complaint which remained unresolved. Hence, they
may spread negative word of mouth and probably induce several others not to rely on online
purchasing of fruits and vegetables. Hence, this is an important finding which is connected
with the main objective of my study that is, finding out the reasons for customer attrition and
taking remedial measures for the same.

2. HOW LONG CUSTOMERS HAVE BEEN USING ONLINE SHOPPING

Table 3.3 How Long Customers Have Been Using Online Shopping

From the above table represents that, 53.33% customers are using online shopping more
than 24 months, 24.67% customers are using online shopping for 1 to 6 months, 12.67%
customers are using online shopping for 12 to 24 months, remaining 9.33% customers are
using online shopping for 7 to 12 months. So we can conclude that the 80 customers out of
150 customers are using online shopping for more than 24 months. This means 53.33% of our
population belonging to the youth, most of them are tech-savvy and they want to buy online,
and because of this the online purchasing of fruits and vegetables is gradually increasing.

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 3. HOW LONG CUSTOMERS HAVE BEEN USING ONLINE SHOPPING SITES
FOR BUYING F & V

Table 3.4 How Long Customers Have Been Using Online Shopping Sites For Buying F &
V

From the above table represent the customers have been using online shopping sites for
buying fruits and vegetables, here 53.33% customers are using online shopping sites more
than 24 months, 20.67% customers are using online shopping sites for 1 to 6 months, 18%
customers are using online shopping sites for 7 to 12 months, remaining 8% customers are
using online shopping sites for 12 to 24 months. So we can conclude that the 80 customers out
of 150 customers are using online shopping sites for more than 24 months.

4. HOW LONG CUSTOMERS HAVE BEEN USING BIG BASKET SITES FOR
BUYING F & V

Table 3.5 How long customers have been using big basket sites for buying F & V

From the above table represent that customers have been using big basket sites for buying
fruits and vegetables, here 52% customers are using online big basket sites 12 to 24 months,
27.33% customers are using online big basket sites for 1 to 6 months, 17.33% customers are
using online big basket sites for 7 to 12 months, remaining 3.33% customers are using online

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shopping sites for more than 24 months. So we can conclude that the 78 customers out of 150
customers are using online big basket sites for last 12 to 24 months.

5. CUSTOMER MONTHLY EXPENDITURE ON BUYING FRUITS AND

VEGETABLES IN ONLINE SITE

Table 3.6 Customer monthly expenditure on buying fruits and vegetables in online site

From the above table represents the Customer monthly expenditure on buying fruits and
vegetables in online site, here 64% of the customers are used 1500 to 2000 Rs/Month for
buying fruits and vegetables in big basket site, 28.67% customers used 500 to 999 Rs/Month,
5.33% customers used 1000 to 1499 Rs/Month, remaining 2% of the customers are used more
than 2000 Rs/Month for buying fruits and vegetables in big basket site. So we conclude that
majority of the customers are spend 1500 to 2000 Rs/Month for buying fruits and vegetables.

6. CUSTOMERS FREQUENCY OF ORDER F & V FROM BIG BASKET

ONLINE SITES (PER WEEK)

Table 3.7 Customers Frequency of order F & V from big basket online sites (per week)

From the above table represent the Customers Frequency of order fruits and vegetables
from big basket online sites (per week) here 54.67% customers are place order 1 to 2 times
per week, 26.67% customers are place order 3 to 4 times per week, 16.67% customers are

14
place order less than 1 times per week, 2% customers are place order 5 to 6 times per week,
0% customers are place order to everyday, so we conclude that majority of customers are
place order in 1 to 2 times per week.

7. DIFFERENT TYPES OF OFFER MOTIVATE CUSTOMERS TO PURCHASE

ONLINE F & V

Table 3.8 Different Types of offer motivate customers to purchase online F & V

From the above table represents Different Types of offer motivate customers to purchase
online fruits & vegetables, here 53.33% customers are like festival sale of big basket, 20.67%
customers are like seasonal sale of big basket, 9.33% customers are like gift voucher for
purchasing fruits and vegetables, 8% customers are like to payback offer, 4% customers are
like coupons, and remaining 4.67% customers are purchase fruits and vegetables without any
offers. So we conclude that majority of the customers are interested to purchase fruits and
vegetables in festival sale of big basket company.

8. CUSTOMERS SECURED ABOUT ONLINE SHOPPING OF FRUITS &

VEGETABLES

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 Table 3.9 Customers secured about online shopping of fruits & vegetables

Above table shows that Customers secured about online shopping of fruits & vegetables,
here majority 73.33% customers are fill the online shopping is secured, 16.67% customers are
fill the online shopping is highly secured, 8% customers are fill the online shopping is
average, remaining 2% customers are fill the online shopping is risky compare to the offline
shopping. Hence we can state that the majority of customers are fill secured when purchase
online fruits and vegetables in big basket site. This table also indicates that the majority of the
customers are fill secured when they purchase online shopping of fruits and vegetables it
means big basket have a positive point to majority of the customers are like to purchase online
because now a days the majority of youth are doing job or their private business, they have
not enough time to spend purchasing fruits and vegetables in market, day by day the online
purchasing trend has increased and majority of customers fill secured when they purchase
online fruits and vegetables.

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 9. IMPORTANT PARAMETERS FOR BUYING ONLINE FRUITS AND
VEGETABLES

Table 3.10 Important parameters for buying online fruits and vegetables

10. MAJOR AREA OF CUSTOMER COMPLAINTS

Table 3.11 Major area of customer complaints

Above table represents the Major area of customer complaints when they purchasing fruits
and vegetables in big basket sites, this table are shown the different complaints are found from

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big basket customers, here main complaints is quality of fruits and vegetables, price of the
fruits and vegetables are high compare to the other online retailer, during survey of customer
complaints this two complaints are mostly found. Quality and price of fruits and vegetables
given highly important by the customers so company have found more complain in this
parameter so the company need to more attention to this parameter, to reduce the customer
attrition rate.

CHAPTER – IV
RESULT ANALYSIS

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 4.1 FINDINGS

 44% of the respondents are in the age group of 41 and above.

 29% of the respondents are belongs to 10th Category
 26% of the respondents experience 11 to 15 years
 47 % of the respondents getting below Rs.8000 salary.
 35% of the respondents are satisfied with the working condition.

4.2 SUGGESTIONS

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 The data was collected solely on the basis of information given by customers selected
in the sample.
 The project area covered was Surat region, so the outcome of the project cannot be
applied to other places due to demographic and geographic differentiation.
 The project work was required to be completedin3months.So the limited time
available and therefore only limited respondents were included in study.
 Personal biases might have come while answer the questionnaires.
 Company try to increase the quality of fruits and vegetables because the majority of
complaints are founds in this parameter
 Fruits and vegetables products price are higher compare to the other competitors so try
to less price on big basket site of fruits and vegetables compare to the other
competitors.
 Company should tries to give a more convenient payment option like card swipe
machine along with Cash on Delivery.
 Fruits and vegetables are perishable in nature so company tries to delivered product at
the right time.

4.3 CONCLUSION

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 The analysis can be concluded by saying that all the independent factors that have been
identified and studied have significant influence on the overall perception of the consumers
which in turn influences their buying behavior. As quality is a major influencing factor, Big
Basket should ensure that all the quality parameters like expiry date products, packaging and
damaged goods should be controlled to develop the trust of consumers. Also to take advantage
of second most influencing factor price, Big Basket should collaborate with maximum
payment vendors to offer best price and discounts to its members. Also the benefits provided
to the members should be distinct on the volume of purchase to provide varied benefits and
privileges.

Big Basket is already providing free delivery services and that too at varied time slots but
in order to make the delivery process more efficient it should ensure shorter waiting time and
training delivery personnel. In order to break the conventional buying behavior of buying
groceries monthly, Big Basket should launch lucrative weekly deals which would prompt the
buyers to improve the frequency of purchase. If we look at the current scenario of Indian e-
commerce sector the picture looks quite bright. Also the egrocery sector is still developing
and is currently dominated by two major players so there are chances that many new players
might join in. Hence in order to maintain its position and to survive in case of tough
competition Big Basket should work on its USP i.e offering varied and unique products like
exotic vegetables and fruits, vast delivery options and building strong member base.
Consumers are not able to understand that apart from monetary benefits online grocery
shopping also helps them in completing the purchase process hassle free by avoiding standing
in long payment lines and carry all the weight to home. Consumers might also prefer Big
Basket if it offers packaging variants to the consumers. The physical stores have the problem
of inventory and at times can accommodate products in certain packaging only. Big Basket
can overcome this limitation of physical stores and try to leverage it by offering packing
variants from smallest to the maxim size available. The business model currently used by Big
Basket is apt and probably that is the reason that it is planning for expansion but over a period
of time innovation and creating USP would only help it survive the competition.

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