Escolar Documentos
Profissional Documentos
Cultura Documentos
E-Grocers vs Supermarkets
Online grocery shopping site Traditional supermarkets Price Variety Ability to attract new customers Products can be verified Personal service
Advantages
Convenience No traffic, no queues Time Saving and easy shopping 24*7 shopping Better prices as next shop is a click away Better comparison of products and prices
Disadvantages
Products are difficult to find Prices are higher than in a conventional store Product quality cannot be verified Narrower assortment than in a conventional store Minor personal service or no service at all
Method of Study
Research Questions
Is online grocery retail an attractive option?
What are the factors influencing the consumer in favor of online grocery purchase?
How does desired waiting time depend on type of grocery items ordered?
Hypothesis
Hypothesis 1: Customers negative sentiments regarding the risks of Online grocery retailing can be compensated by offering LOWER prices
Hypothesis 2: Customers want lesser waiting time for perishable and frequent use grocery items
Hypothesis 3: Customers are willing to pay HIGHER prices in exchange for the time and transportation costs saved in ordering groceries online
6. Internet shoppers are older and make more money than non-internet shoppers.
Methodology
Familiarizing respondents with topic to be discussed and motivation behind study Discussion of one question at a time Mainly open ended questions with more emphasis on personal opinions No need to achieve consensus of any sort Ensuring nearly equal participation
Profile
Age: 29 years Profession: Runs an institute training people for GD/PI Internet Usage: Moderate to Heavy Online Shopping: Frequent Products purchased: Books, music CDs Preferred Sites: Flipkart.com, Infibeam.com Has shopped online for groceries on a couple of occasions
Questionnaire Design
Gauging internet usage & grocery consumption: place of access, frequency, grocery bill range Factors impacting purchase: both positive and negative factors identified in FGD rated on Likert Scale, prioritizing among them, impact of price change on purchase decision
Questionnaire Design
Selection of items: Respondents asked to rate most likely items of purchase (broad categories) on Likert Scale, Identification of importance attached to certain features of website to help with design
Logistics and payment preferences: capturing perception on optimum method and amount of premium, desired delivery time, mode of returning faulty items
Data Analysis
1- least likely
5 - most likely
1- most likely
5 - least likely
Hypothesis 1: Customers negative sentiments regarding the risks of Online grocery retailing can be compensated by offering LOWER prices
A significant relation occurs between payment security and customers likelihood to use online grocery retailing With increasing concerns about security, the likelihood to use online retailing increases with LOWER offered prices Customers security apprehensions can be compensated by offering lower prices
A significant relation occurs between lack of credit facilities and customers likelihood to use online grocery retailing With increasing concerns about lack of credit facilities, the likelihood to use online retailing increases with LOWER offered prices Customers negative sentiments regarding lack of credit can be compensated by offering lower prices
Hypothesis 2: Customers want lesser waiting time for perishable and frequent use grocery items
Mean value of responses
5 4 3 2 1 0
Frequent use items like Rice, Oil and Milk and perishable items like
Vegetables have a significant relation with the Waiting Time variable With increasing likelihood of ordering frequent and perishable items, the waiting time for delivery expected by customers decreases Hence, customers expect that perishable and frequent use items have a low delivery time of less than 12 hours
Hypothesis 3: Customers are willing to pay HIGHER prices in exchange for the time and transportation costs saved in ordering groceries online
Perceived positive advantages of using online grocery retail, mainly saved time and
transportation costs are significantly related to greater likelihood of ordering online by paying a PREMIUM charge Customers who value the Time and Transportation Costs saved by online grocery shopping are willing to pay higher price for the goods
Factor Analysis
Logistics Issues
Resistance to change
THANK YOU