A

Project Report
On
“CONSUMER PERCEPTION TOWARDS
ONLINE GROCERY SHOPPING ”

Pt. Ravishankar Shukla University, Raipur(C.G)

In Fulfilment of the requirement for the degree of

MASTER OF COMMERECE
IVth SEMESTER for the
Session 2017-2018

Guided By: Submitted By:

Miss. SMRITI AGRAWAL PRABHAT KUMAR EKKA

IVth Semester

Roll No: 1620367

En. No: XX/37185

DURGA EDUCATION SOCIETY

VIVEKANAND MAHAVIDALAYA
RAIPUR (C.G)

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 DECLARATION BY CANDIDATE

I PRABHAT K .EKKA declares that the project entitled “CONSUMER

PERCEPTION TOWARDS ONLINE GROCERY SHOPPING” is my own work my
own work conducted under the supervision of MISS. SMRITI AGRAWAL at
VIVEKANAND MAHAVIDYALAYA RAIPUR (C.G)

I further declare that to the best of my knowledge the projects does not any part
of work, which has submitted for the award of my degree either in the University or in any
other University.

Signature of the Supervisor Signature of the candidate

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 CERTIFICATE OF APPROVAL

This is to certify that the project work entitled “CONSUMER PERCEPTION

TOWARDS ONLINE GROCERY SHOPPING” is carried out by PRABHAT KUMAR
EKKA, a student of M.Com - IVth semester year 2017-2018 at VIVEKANAND
MAHAVIDYALAYA, RAIPUR (C.G) is hereby approved as a credible work in the
discipline of commerce for the award of degree of Master of Commerce during th year 2017-
2018 from Pt. Ravishankar Shukla University, Raipur (C.G)

(Project guide) (H.O.D. Commerce) (Principal)

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 CERTIFICATE OF EVALUATION

This is to certify that “CONSUMER OF PERCEPTION TOWARDS ONLINE

GROCERY SHOPPING ” submitted by PRABHAT KUMAR EKKA of MASTER OF
COMMERCE (M.COM) IVth semester of VIVEKANAND MAHAVIDYALAYA,
RAIPUR (C.G) has prepared this project report for the partial fulfillment of M.Com Degree
of Pt. RAVISHANKAR UNIVERSITY,RAIPUR for the session 2017-2018 .

Internal Examiner External Examiner

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 ACKNOWLEGEMENT

I am thankful to MISS. SMRITI AGRAWAL the project guide who has inspired and
guided for the completion of the project. Her guidance has been a milestone for me to
complete this project work in a very limited time.

MISS. SMRITI AGRAWAL

M.Com IVth

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 Table Of Contents
Chapter Topic Page No.
No.
1 Background Of The Study
2.1 Company’s Introduction
2.2 Consumer Perception Towards
Online Grocery Stores
2.3 How Does It Work?
2.4 Scope Of Online Grocery Stores In
Raipur
3 Research Methodology
3.1 Objective Of The Study
3.2 Scope Of Research
3.3 Limitations
3.4 Collection Of Data
4 Data Analysis And Interpretation
5 Finding and Suggestion
6 Bibliography And Webliography
Annexure Questionnaire

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CHAPTER 1

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1. Background Of The Study
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 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 behaviour in cyberspace.

Along with the development of E-retailing, researchers continue to explain E-consumers

behaviour from different perspectives. Many of their studies have posited new emergent
factors or assumptions which are based on the traditional models of consumer behaviour,
and then examine their validity in the Internet context.

Groceries are one of the basic needs in everyone’s life. People can stay without good clothes, with
technological problems but cannot spend a day without proper food and hence the grocery market
has always been either steady or growing.

Until a decade back the need for daily grocery was fulfilled by local kirana store (mom & pop store)
or hyper-local market/supermarket. However, with advent of technology and urbanization, several
start-ups are opening online grocery stores to serve consumer’s demand of grocery and at the same
time providing them advantage of home delivery and relaxation from standing in long billing queues.
Currently, most of the online grocery stores are located in Metro and Tier-I cities, but with increasing
incomes and urbanization, they are slowly expanding to Tier-II cities as well.

The need for online grocery has emerged because of change in working conditions over the last
decade with both partners working for long hours. Also, with urbanization and soaring land prices, it
has become difficult to find large amount of land within cities like Mumbai, Delhi to open large
stores.

Hence, the new hyper-local markets are being opened in outer areas resulting in the increased
distances that one has to travel to get to hyper-local store. This coupled with long billing queues
leave little time for people to shop on stores. Apart from this, the ubiquitous presence of Internet has
made it possible for the grocery stores to go online and has resulted in growth of e-tailing.

Although, from outside the industry for online grocery looks very attractive, however not many start-
ups in this domain were able to survive leaving few players in the market. This report covers three
major aspects of this industry including attractiveness of this industry, challenges and opportunities
for the current online players and how offline retail giants like More, Reliance fresh can build their
brand in online grocery space.
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CHAPTER 2

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 2.1 Company’s Introduction

Grocery shopping is a very boring, but an unavoidable business. Order groceries online, from top
online grocery store and sit back and relax. Get rid of the tedious task of commuting
to the local store for buying groceries. Ordering these from the online grocery sites for grocery in
India helps you in more ways than one – saves your time, energy and money. You can get great deals
online as well based on days, weeks, festivals and occasions such as New Year deals, Holi offers,
Independence Day deals and more. Here is the data of several online grocery shops regarding their
fundings and current status.

Name Launch Year Funding Current Status

Big Basket 2011 $ 888.7 Million ‘Consumer Internet
Company of the Year
2016’
Grofers 2013 $ 241.8 Million Active in 17 Cities
Zopnow 2011 $ 10 Million Partnership with More
and HyperCity,
Operational in 11 cities

Nature’s Basket 2005 $ 4.8 Million Operates in 125 Cities

Reliance Fresh 2006 $ 3.8 Billion Covers 93 cities in India
Amazon Prime Pantry 2016 $ 243 Million Currently Expanded to 27
Cities
Aaramshop 2011 $ 1 Million Currently losing
Customers due to
competition and poor
marketing.
Bazaar Cart 2014 $ 10 Million Offers Products at
cheaper price and
discounts
Naturally Yours 2010 Undisclosed (Seed Delivers to 1500+
Funding By Sanjay pincodes across India
Mehta)

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Big Basket

Big Basket is India’s leading supermarket selling quality and fresh vegetables, fruits, beverages,
personal care products, household items, meat and eggs, bread, grocery and staples. Here you will
get quality products be it rice, dairy, spices, gourmet products or any other items related to your
grocery needs. And is savings on grocery shopping is at the top of your mind, Big Basket is the place
for online grocery India . Here you can get various discounts and offers such as a 10% cashback or
an extra 5% off on your orders using the Big Basket coupons. Other than the quality and discounts,
they also ensure on-time delivery, same day or express delivery and signature packing. The store
delivers products that are ordered online anywhere in the following cities – Chennai, Bangalore,
Hyderabad, Pune, Mumbai. BigBasket is a award winning company – “Best online grocery store” by
VCCircle for ‘Consumer Internet Company of the Year 2016’.

To promote organic farming and millets, the Karnataka government has tied up with online grocery
platform BigBasket. BigBasket will procure approximately 500 metric tons of millets valued at Rs
2.50 crore.

Grofers

Grofers is a hot favorite and the best online grocery shopping market place. Their uniqueness lies in
the fact that they connect consumers with all local stores, selling grocery items. It is an on-demand
store that delivers veggies, fruits, other grocery items, baked goodies, electronics, cosmetics, flowers,
baby care and pet care products as required by the consumers. You have the freedom to shop from
the favorite stores, in your area, choose and schedule delivery slots and also get real time updates on
whatever you order. They have covered lots of cities such as Delhi NCR, Mumbai, Pune, Nagpur,
Kanpur, Kolkata, Hyderabad, Bengaluru, Chennai, Indore, Lucknow, Surat, Jaipur, Agra,
Ahmedabad, Vadodara and Chandigarh.
If sources are to be believed, Grofers India Pvt. Ltd is going to merge with its rival BigBasket. And if
consummated, the merge will also see SoftBank Group, an existing investor in the latter, participate
in a $60-100 million funding round in the merged entity, said three people aware of the development.

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Zopnow

Founded by two ex-Amazon employees, Bal Krishna and Mukesh Singh, Zopnow is an upcoming
eCommerce site delivering items of ‘daily needs’. Currently focused on South Bangalore (and some
areas in central and east Bangalore), Zopnow swears by a 3 hour delivery policy. The Hyper market
delivers everything from eggs to soaps to batteries; the choice is befuddling.
Being a business of ‘daily needs’, Zopnow has a great advantage of repeat customers. Delivery upto
Rs 500 is charged with a Rs 30 delivery cost and anything above Rs 500 is delivered without
shipment charges. Having been in business for a few months now, Zopnow has seen a trend that the
first buy is usually around Rs 500 but once the customer is satisfied, the ticket size speedily goes
upto RS 6000, with close to 75% individuals as repeat customers.
Having been sufficiently funded, Zopnow plans to keep to Bangalore for the next few months.
Zopnow will be delivering all across Bangalore in 2-3 months, post which they’ll be thinking about
going to different cities. “We’re very sure of what we want to do and believe that a steady pace will
take us there. We don’t want to be rash and make rookie mistakes.” concludes Bal Krishna.

Nature’s Basket

Natures Basket Limited engages in the gourmet food retailing business in India. The company’s
stores offer breakfast items, including oats, muesli, cornflakes, bran flakes, and granola bars;
carbonated beverages, juices, squashes and syrups, water, tea and coffee, and sports and health
drinks; bakery products comprising breads, muffins, dry cakes, croissants, and patisseries;
condiments, cooking pastes, dry grocery, flours and grains, ghee, oils, and ready to cook mixes; and
Indian and imported fruits and vegetables. Its stores also offer fresh poultry, lamb, sea food, cold
cuts, sausages, pates, caviar, and frozen non veg foods; chocolates, confectionery, biscuits, cookies,
crackers, dry fruits, and ice cream; cooking aids, such as wine accessories, sushi mats, cutting and
chopping knives, and nic-nacs; antipasti, cooking and serving sauces, dessert mixes and sauces, and
dips and spreads; red, white, rose, and sparkling wines, as well as champagne, fortified wine, beer,
ale, and craft beer; soft, hard, semi hard, blue, fresh, and flavored cheese; and meat and cheese
platters. In addition, the company sells its products through Internet. As of January 24, 2012, it
operated 19 stores in Mumbai, New Delhi, Gurgaon, Pune, Bangalore, and Hyderabad. The company
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was founded in 2005 and is headquartered in Mumbai, India. Natures Basket Limited operates as a
subsidiary of Godrej Industries Limited.

Reliance Fresh

Reliance took to the online grocery market, as its brick and mortar stores has already been a huge hit
with the consumers. Just like its physical counterparts, the online stores offer 6000+ products all over
India. With Reliance Fresh Direct, you would no more be required to go out for grocery shopping,
jostling in the crowd and sweating in the sun. Make your choice from the freshest veggies and fruits,
nutritive dairy and grocery staples, baked items, packaged foods, drinks, confectioneries and snacks,
personal care and household items from the list of best online grocery store.

Amazon Prime Pantry

Amazon Prime Pantry is a service of Amazon.com available only to Amazon Prime members that
packages everyday (non-bulk) non-perishable grocery store items into a single box for delivery for a
flat fee. The service is available in the United States, the United Kingdom, Germany, Austria, India,
Japan, Italy, Spain, and France
Amazon Pantry is currently present in Ambala, Bangalore, Chandigarh, Chennai, Dehradun, Delhi,
Dharmapuri, Faridabad, Ghaziabad, Gurgaon, Howrah, Hyderabad, Jaipur, Kanchipuram, Kolkata,
Mangalore, Manipal, Mohali, Mumbai, Mysore, Nashik, Noida, Panchkula, Panipat, Pondicherry,
Pune, Rohtak, Secunderabad, Sonepat, Thane, Tumkur, Vellore, Vijayawada and Warangal.
Amazon Pantry is an online supermarket wherein customers can buy grocery and household items.
You can fill a virtual box of items from the Amazon Pantry store and have the items delivered the
next day to your doorstep. The delivery charge is Rs 30 for Prime customers and Rs 59 for non-
Prime customers. However, if your Pantry order value is above Rs 599, the delivery is FREE. The
guaranteed next day delivery on Amazon Pantry ("Next Day Delivery") is subject to the following
terms and conditions:-

a.Orders must be placed within the time frame mentioned on the product details page to avail Next
Day Delivery. .

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b.The Next Day Delivery guarantee applies to attempted delivery by the promised date. Amazon will
not be responsible to provide guaranteed delivery if the customer is not present at the delivery
address to take the delivery. .

c.On Saturdays, and regional or national holidays, deliveries are not guaranteed to establishments
like offices that might be closed. .

d.Next Day Delivery is not available to establishment addresses like offices and business premises. It
is restricted only to residential addresses..

e.Next Day Delivery attempts happen latest by 8pm.

Aaraamshop

AaramShop is a location-based online grocery platform that enables its users to discover a range of
products at nearby stores. hrough its application and website, Aaramshop enables its users to shop
for groceries under categories such as edible oil and ghee; rice, lentils, and dhal; water and
beverages; coffee, tea, and cocoa; and ready-to-cook items. A user has to only select the nearest
retailer in their area to confirm the order and the payment can be made by cash when the goods are
delivered.

Bazaar Cart

BazaarCart.com is an online grocery store doing door step delivery in Delhi ncr region including
Delhi, Noida, Ghaziabad & Greater Noida with over 500 brands in different categories like Patanjali,
Sri Sri Ayurveda, olive oils, Atta, International Imported items to Stationery. Bazaar Cart have more
than 15k+ products in categories like Patanjali products, Branded foods, Staples, Oils etc. You can
buy Patanjali products online from huge Patanjali products list which is one of the most selling
category in India Region. Brands like Mahakosh oil, Fortune Oil, Mangat Ram Pulses, Rajdhani
Besan etc. It is among the fastest growing online shopping site in India.

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Naturally Yours

Naturally Yours is India's No.1 organic super food brand. With over 50+ products in over 14
categories. We work with hundereds of organic farmers and farmer groups across India to bring to
you these wonderful high quality products. We have been working with our farmers for over 6 years
to build a strong trust and mutually beneficial relationship. Our major product categories are Super
Foods, Rice & Millets, Fluten Pastas,Millet Noodles, Organic Gifting, Seeds & Nuts, Ayurvedic &
More. We accept all major credit, debit cards and net banking option on all orders. We service over
3000+ pin codes across India.

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2.2 Consumer Perception Towards Online Grocery Stores
The Indian economy is slated to grow by upward of 6 % annually in the next few years
which is among the highest rates of any big emerging economy. And quite a lot of this
growth would be on the back of domestic consumption of goods and services.
E-commerce is emerging as a great level given that organized retail is still not ubiquitous
across the length and breadth of the country with large retail chains making up less than 10%
of the market.

E-commerce is helping people in smaller towns in India access quality products and services
similar to what people in the larger cities have access to. It’s being forecast that close to 60%
of online shoppers would come from beyond the top eight large cities by end of this year.
Increasing internet penetration has helped to expand the potential customer pool. Internet
penetration is only about 10% (or about 121 million users) as against about 81% in the US
and 36% in China. However this number continues to rise at a consistent pace because of
falling prices for broadband connections.

Indians are also increasingly taking to mobile devices for not only search but shopping as
well. The number of smartphone users is rapidly increasing in India and with 4G services
about to take off it’s expected to get even more people going online. There are currently
about 900 million mobile subscribers and this number is expected to touch 1.2 billion by
2015. Of these about 27 million are estimated to be active mobile internet users. More
importantly, 20% users indicated intent to buy products through their mobile phones as
against the current 4% and this number is expected to only increase in the next two to three
years.

Innovation is helping e-commerce companies break the inertia for online shopping by
offering benefits to customers not traditionally available in a brick and mortar store.
Business models include no question asked return policies ranging from 7 days to 30 days,
free product deliveries and the industry dynamics changing “cash on delivery” model. The
last innovation has really help unlock the potential as people can now order products and
pay when they get physical delivery of the product.

This has been a tremendous success because Indians are still reluctant to give their
credit/debit card details online and want to have the psychological comfort that they would
actually get the product once payment has been made. These innovations have led to further
innovations downstream as ancillary businesses are developing to support these initiatives.

Some companies have begun to develop support mechanisms for the entire cash on delivery
model and are trying to reach the far flung corners of India, including in the interiors where
traditional logistics companies are still not completely present. The logistics companies are
also shoring up their act and have started to build specific verticals and expertise to address
the requirements of e-commerce companies.

Divyan Gupta is the Founder and CEO of Keshiha Services Pvt. Ltd, a company with
interests in the internet, telecom, healthcare, education and advanced technology businesses
has stated that, acceptance of online shopping as a secure shopping mode is has also helped
to increase e-commerce uptake.

Currently only about 10 million people do online transactions out of an approximate

population of 200 million credit and debit card holders. However the latest industry report
by First Data Corporation and ICICI Merchant Services indicate that there are about 150
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million users that are ‘ready’ for e-commerce.

More importantly the report indicates that urban Indian consumers are now confident
enough to make online purchases of up to US$500 as against US$40-100 in the recent past.
So not only are the numbers of online shoppers projected to increase but there has been a
real increase in the total value being spent online.

So what happens next for an industry which is retailing everything online- from flowers to
baby products to books, coupons, apparels, music and electronic items to even houses, cars
and jewelry? While this e-commerce play is not like the earlier dot com bubble, there are
clear signs that order might be coming in amidst all the noise that is out there.

First a slow but sure consolidation is starting to take place in the industry. Experts say that
over the next 12-18 months there would be a couple of multi-product generalists who would
be successful along with a leader in single product category.

Second, Venture Capitalists are starting to be choosy about which business to invest in,
basing their decisions on performance as opposed to future predictions. Valuations which
went through the roof are now returning to normal levels. According to an Avendus report,
about US$829 million was pumped in the sector in the first 10 months in 2011. However this
came down to US$16 million in December 2011 and went up only marginally to. US$24
million in January of this year.

Despite all of this, it’s been a very impressive story so far. The poster child of the Indian ecommerce
industry is Flipkart.com, a 4 year old venture which modeled itself
afterAmazon.com and is already commanding a valuation of US$ 500 million and is
targeting revenues of US$1 billion in the next two to three years. All of this has caught the
attention of Amazon.com which entered the market in February this year. It came in through
Junglee.com, a price comparison site and is already amongst the top 10 sites in the country.
Everyone is therefore trying to capitalize before the 800 pound gorilla comes in fully on its
own which is expected to be sometime around Q3/Q4 this year.

There is huge demand for top-notch professional grade web 2.0 consultancy and
development. Very few companies have a long term vision around customer acquisition,
retention and constant conversations. A lot more can be done in understanding the linkages
between design and functionality based on user experience and social integration. However
to succeed in a tough market like India your company needs to be open to long term
strategic partnerships rather than an upfront “pay for services” model. The upside would be
worth its wait.

India has more than 3,311 running e-commerce centres, according to research conducted by
eBay India for its 2011 census. Indian web is clouded with e-commerce (B2B, B2C, B2G,
and C2C type business models) start ups and increasing like mushrooms on lawn.

India- an upcoming super power has more than100 million internet users which is keep on
growing by introduction of 2G and 3G. They want to be online always by any internet
enabled gadgets. People are moving from street bargaining to online web bargaining. The
common Indian Mentality of “seeing and believing” or “how it will look” is changing by
introducing some creative business models like “cash on delivery” by major e-commerce
sites.

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Factors with respect to Women in Online Shopping
Shopping has been an obsession of women across the globe. A new shop in the
neighborhood, a new shopping mall in the area, a new brand launched – women are first to
know and first to go. When it comes to shopping, women are more organized (45% of
women come to retail stores with shopping-lists as compared 27% of men), regularized and
they show some definite trends in their buying behaviors. A woman is more likely to spend
time in a retail store (29%) as compared to her male counterpart (23%). When a woman
visits a retail store or any physical retail store she will consider a few important factors such
as:

• How conveniently the store is located

• Behaviour of the staff
• Cleanliness (most of women are obsessed with it)
• Products put at an easy reach so that she can check the label, feel it (if required) and
physically compare it with a similar product from a different manufacturer
• Overall aesthetic decoration of the store
• And most importantly – freebies and discounts available with the products

Naturally, the same woman when she would visit an online retail store will look for these
factors in her sub-conscious mind. She would love to get the same feeling as she derives
from the environment of her favorite retail store. She will unknowingly demand these from
your online shopping store. She would choose to stay and buy from youronline webstore if
you can meet the following:

• Save time: You should give her the navigational freedom and easy roam around
options in your store; give her instantly whatever she wants.
• Get a better selection: Your product should be the best in the designated price
Bracket
• Complete product details: Do not describe your products in single words; give as
much detail as possible.
• Better value/offer: Your freebies should be 'useful' enough and the discount should
be noticeable
• Logistics: You must deliver the product right at her doorsteps and nowhere else!
• Flexible return policy: Many times a woman takes a second opinion and you should
respect this nature. Be flexible if she asks you to replace what she has bought.

Online Grocery Shopping

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.

Ordering Food Online

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

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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.

Benefits of Online Grocery Shopping

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 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.

Disadvantages of Online Grocery Shopping

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. Another disadvantage is that online shopping
forces the customer 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.

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2.3 How Does It Work?
Following are the basic parameter that determines the working of online grocery 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 prices for each
item.

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

Filling the Order and Shipping

The next step is 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 stockboy or
other employee.

This process can be made easier by having a well-organized room where the products can be
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 food needs to be placed in a
vehicle and delivered 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.

Also, it is important to have the ability to obtain and process payments made by credit card.
Also, in order to encourage repeat customers, it can be helpful to require customers to have a
Username which would allow information to be stored. This can also help create
"Suggested" carts of food items they commonly purchase.

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2.4 Scope Of Online Grocery Stores In Raipur

At the scope of online grocery store in Raipur city is minimal as there are no such stores functioning
in this region right now. One of the major cause of this is perishable nature of many goods sold
through online grocery store. People also depend on touch, feel and smell method for selection of
many items of daily use specially cereals like Rice, Pulses, Wheat, Wheat flour etc. Some other
deterrents are return procedure and delayed delivery of products. Sourcing different products from
different sources in case of non availability of product from one store. Internet penetration is also a
major challenge in Raipur where many people do not have internet access. However the situation is
changing slowly as the number of smart phones are increasing in the region which is increasing the
internet penetration. With changing scenario we may expect that the some or many grocery store can
come up in the region pretty soon.

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CHAPTER 3

22
3. Research Method

According to Saunders et al. (2012) a research is something that is undertaken to find the
answer of an issue in a systematic way in order to increase knowledge. Thus this is regarded
as a research since the aim is to increase knowledge about the attitude-intention
relationship within the online grocery market in Sweden. In a research it is important to
know the difference between method and methodology in order to explain the research
and how it will be conducted. Methodology refers to the set of theory of how the research
will be undertaken; this includes research strategy, philosophy, approach and technique.
Method is the set techniques and procedures in which the research will be conducted, in
other words it describes how data will be collected (Saunders et al., 2012). This research
will use a quantitative method when conducting primary data. However in order to fully
understand the choice of method, the concepts concerning methodology will be further
elaborated below.

Research Strategy

A research strategy is the plan of action implemented to achieve a goal that is set for a
research. An explanatory research strategy aims to explain how one phenomenon is related
to another (Saunders et al., 2012). Considering the research question; “Does consumers’ positive
attitudes influence the decision of purchasing groceries online?” and the testing of the Theory of
Planned Behaviour, an explanatory strategy is chosen for this research. An explanatory
research strategy aids in explaining and investigates the relationships of the variables of the
Theory of Planned Behaviour within the online grocery market and gives an explanation
that later on can be generalized in theory (Saunders et al., 2012).

Research Philosophy

In order to conduct a research in an appropriate manner aligned with the purpose and
research strategy, knowledge regarding the appropriate research philosophy is vital. For this
research a realism philosophy is chosen. It is said to be the most cohesive philosophy for
an explanatory and quantitative research in order to achieve a generalizing result. Realism is
a philosophical position associated with scientific research because of its objectiveness in
how the world is perceived. It claims that the reality is quite independent of the human
thoughts and beliefs (Saunders et al., 2012). Furthermore, this research is suitable for an
realism philosophy since the measures are numerical in nature.

In realism, knowledge is perceived to be obtained through an observable phenomena and

real facts from credible data. The quantitative method in this research enables a large
amount of data to be collected and thus gives the possibility to obtain observability of a
phenomena (Saunders et al., 2012). Additionally, the realism philosophy suggests the
explanation in the data collection should be conducted within a context. To implement
this, the survey used in this research will contain statements, which explains for the
respondent in which context they are to base their judgements on. Within this research all
statements will be in context of online grocery shopping and e-commerce.

According to realism, the valuation of the results is expected to be distorted since the
researchers are biased by their cultural experiences and preference (Saunders et al., 2012).
Therefore it is important to consider the distortion when analysing the collected data, in
order to give an as explanatory perspective as possible in this issue. This is further
elaborated upon in section 3.5 along with other limitations of the method.

23
Research Approach

1. Deductive

A deductive approach is chosen for this research since the area of research already contains
existing theories that have to be taken into consideration and therefore also used as
theoretical framework. A deductive research approach develops a theoretical framework
before collecting primary data explicit for the cause of the research (Saunders et al., 2012).
The aim of a deductive approach is to state a set of premises based on theory that explains
causal relationships between different variables and question them in an objective manner,
which is implemented through the hypotheses within this research. The development of
the hypotheses is based on the Theory of Planned Behavior, which will be tested and
analyzed by the primary data collected. This is in order to compute statistical regularities
into measurable variables and connect them to theories to enable an analysis of quantitative
findings, which is in accordance with a deductive research approach (Saunders et al., 2012).
How this will be implemented will be further explained in the method (section 3.2), which
will describe the generalizing and operationalization of the theories more thoroughly.

2. Quantitative Method

In order to succeed with finding the relationship between attitudes and intentions within
the online grocery market, a quantitative approach is chosen for collecting and analysing
primary data. The method chosen for the empirical study will be done through a single data
collection, also called a mono-method (Saunders et al., 2012). This means that the only
primary data collection conducted in this research will be the quantitative study. This suits
the aim of testing the attitude-intention relationship based on the Theory of Planned
Behavior within online grocery shopping. Using a quantitative approach enables
statistically bounded results and is feasible within the time frame of this research. In
comparison to a quantitative approach, a qualitative approach gives more profound, in
depth and multifaceted results. These type of results could be more difficult to implement
without the researcher losing the objectiveness, which is of importance in this research
(Saunders et al., 2012).

A quantitative approach enables larger amount of data to be collected and provides the
research with numerical data, which later can be statistically interpreted. In this research it
enables the variables within the Theory of Planned Behavior model to be measured in an
accurate measure, this is of value since ability to measure the data is of importance
(Curwin, Slater, 2007). Attitudes can be analyzed through quantitative measurements by
using a system of scale, for example the Likert Scale Approach (1932). This scale approach
will be implemented within this research and the results will be interpreted through
statistical analysis, further explained in the data analysis (section 3.3).

The research technique for this research is an online survey, which will enable the
collection of the quantitative data needed in order to answer the research question. It is
argued that an online survey is applicable in this research since it will facilitate the
collection of larger amounts of standardized data from the selected sample. A survey is one
of the most reliable and used strategies in business research concerning consumers’

24
 investigations. Moreover, in this research it is suitable since it also enables a non-personal
approach towards the respondents. It is therefore aligned with the objective perspective of
the researcher, which as mentioned is of importance in this research. Additionally, the
online survey technique is less time consuming than other techniques and does not have
any budget constraints (Saunders et al., 2012).

3.1 Objective of The Study

• To study attitude of customers towards online shopping.

• To find out the preferences of the consumer regarding the attributes of online
shopping website.

• To identify the issues faced by the user while online shopping.

• To determine the parameters for choosing the particular shopping centre for purchase
of grocery items.

• To determine whether online grocery shopping will be beneficial and on what

factors.

3.2 Scope Of The Research

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

• To find out which feature of the website attracts the user to purchase the product
from the online shopping website. `

• To find out whether grocery online shopping is beneficial for the user.

• To analyze which factors influence the user to buy online grocery.

3.3 Limitations
• The first limitation caused during the market research was to find out the respondent
who shop online and are web savvy.

• The second limitation caused during the research was searching the women
respondents who shop grocery products along with the experience of online
shopping.

• 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 or retailers’ perception towards online shopping which acts as an agent
to the online retail industry to support its business operations.
\

25
3.4 Collection Of Data

The sources of data used in this project report are both primary and secondary data.

1. Primary data

Primary data consists of original information gathered from sample size of 200
respondents residing in Raipur, India.

2. Secondary data

Secondary data consists of information that already exists and that was collected in
the past for some other purposes.

Sample Design:

• Size of Sample: The sample size selected for the research is 200 in the area of
Raipur

• Parameters of Interests: The major parameter of interest is the subgroup of people

who are working professional and web savvy having an experience in online
shopping. The two other subsidiary parameters of interest are:
 The respondent should also have an experience grocery shopping.
 And the female respondent who have an online shopping experience.

Sampling Technique:

▪ Quota Sampling

Quota sampling is a method for selecting survey participants. In quota sampling, a

population is first segmented into mutually exclusive sub-groups, just as in stratified
sampling. Then judgment is used to select the subjects or units from each segment
based on a specified proportion

Over here the sample are taken who working, having an experience in online
shopping and are web savvy. Also women respondent are taken as they are the user
who shop for grocery items than the male.

Data Collection Tool Used:

▪ Questionnaire

The data collection tool used for the research is “Questionnaires” to get the primary
data for the empirical research on consumer preference on online grocery shopping.

The Questionnaire which is attached in the next page consists of a number of

questions printed in a definite order on a form which the respondents read.

26
CHAPTER 4

27
4. Data Analysis And Interpretation

Personal Information:

Gender;

Gender

Male Female Total

90 110 200

Gender

Male
Female

Illustration:

The above diagram depicts that out of the total 200 respondent 55% of the respondent were
female as the objective was to study the consumer behaviour with respect to online grocery,
as grocery is more shopped by female respondent

28
Age Bracket:

Age
18-24 25-30 30 & Above Total
80 50 70 200

Age

18-24
25-30
30 & Above

Illustration:

▪ The 35 % of the respondent were among 30 & above age bracket as these
respondents are well educated and web savvy.

▪ Another 40% of the respondent were ranging from 18-24 age bracket and the
remaining 25 % were respondent were ranging from 25-30 age bracket, as these
respondents are ready to adapt changes.

29
Occupation:

Occupation
Service Business Total
119 81 200

Occupation

Service
Business

Illustration:

For the research to be successful most of the respondent are working officials who are
educated and web savvy.

30
Annual Income Level:

Annual Income Level

1-5 Lacs 5-10 Lacs 10 & Above
76 82 42

Annual Income Level

1-5 Lacs
5-10 Lacs
10 & Above

Illustration:

From the above pie chart we can determine that 41 % of the respondent have around 5-10
lakhs of annual income which indicates majority of the respondent have spending power to
purchase grocery items.

31
Q1. Which item you shop online?

People may select more than one checkbox, so percentages may add up to more than
100%.

Apparels Books Electronic Food Games Music Other

39 48 46 9 16 47 5

Items sold online

60

50

40

30

20

10

0
Apparels Books Electronic Food Games Music Other

Illustration:

The above diagram depicts that book has the highest number transaction in online
shopping.
Music is the second most item sold in the online shopping, along with electronics
appliances like hair dryer, mobile appliances, computer peripherals etc.
The other items that are sold in the online shopping are the apparels which are more
preferred by the female respondent.
Games are the items that are preffered with the respondent ranging the age bracket
between
The other items which are sold online are such as flowers, gifts and movie tickets.

32
Q2. How much money do you spend in online shopping?

1000- 5000 &

100-500 500-1000 5000 above
12 28 53 7

Money Spent in Online Shopping

100-500 500-1000 1000-5000 5000 & above

Illustration:

The money spend in online shopping is ranging from INR 1000-5000, which indicates
the users are willing to pay more price when there is premium quality products such
as electronics, branded apparels, original music etc.

33
 Q3. When do you feel the need to shop online?

People may select more than one checkbox, so percentages may add up to more than
100%.

When I want When I When I don’t have

something need to the time to find
When I need uniques & compare things in different
home delivery special prices markets other
71 39 43 42 1

Need to Shop factors

80
70
60
50
40
30
20
10
0
When I need home When I want When I need to When I don’t have other
delivery something uniques compare prices the time to find
& special things in different
markets

Illustration:
From the above we can depict the factor which motivates the respondent to shop online is
when they need home delivery.
The other factor which motivates to shop online when they compare prices of different
products at a same place.
The above graph also determines that people shop online when they don’t have the time to
find things in the market for the product to be purchased.
Also respondent shop online when they want some unique & special product which they
cannot find in the offline market.

34
Q4. What features in online shopping attracts you?

People may select more than one checkbox, so percentages may add up to more than
100%.

Design of Discounts Value of

website offered Advertisement Variety Money
33 77 39 59 29

Series 1
90
80
70
60
50
40 Series 1
30
20
10
0
Design Of Discounts Advertisements Variety Value For
Website Offered Money

Illustration:

From the above diagram we can determine that people prefer online shopping when
discounts offered are offered to them.

Also the variety of product offering to the customer also forms an important factor which
motivates the respondent to shop online.

The other factor that motivates the user to shop online is when the product they purchase is
of value of money.
Also the design of website along with the different advertisement promotion motivates
the user to shop online.

35
Q5. While shopping what effects the satisfaction the most?

Very Somewhat Not

Important Important Important

Website User Friendly 78 19 3

Adequate Search Option 46 53 1

Product Assortment 44 54 2

Cash on delivery 69 26 5

Net banking payment 48 45 7

Credit/Debit Card payment 42 52 6

Offers & Discounts 77 22 1

Free Shipping 78 20 2

Id & Password Confirmation 47 46 7

Order Confirmation Screen 53 44 3

36
Tracking of items 53 38 9

90

80

70

60

50

40
Very Important
Somewhat Important
30
Not important

20

10

37
Illustration:

The above diagram depicts that website user friendliness forms an important factor when it
comes to online shopping, more the website user friendliness will determine more number
of visits on a website which will in turn results an increase in the sale truncations for the
particular shopping site.
Adequate search option is the search bar which is used by the user to search for a particular
type of product in the website. The above graph depicts that user feels that adequate search
bar form neither important nor unimportant part of the online shopping website.
Product assortment in a online shopping website helps the user to easily track the product
they are willing to buy. Eg. In apparels category products can be assorted in categories like
male & female, jeans or tops, salwar, kameez etc. From the above graph we can determine
product assortment form neither important nor unimportant part of the online shopping
website.
Cash on delivery forms an important aspect of the online shopping website in Indian online
shopping market, the above graph depicts that it does forms an most important part on the
online shopping.
The other mode of payment gateway through net banking and credit/debit banking also
forms an important part of the online shopping website.
The above graph depicts that along offers & discounts, free shipping also forms as the most
important factor for the online shopping website, which forms a motivating factor for the
user to shop.
When it comes to security aspect of the website Id & password forms an important aspect
of the online transaction. The other aspect order confirmation is the like the shopping cart
where the user gets the list of items he/she is going to purchase which avoids unnecessary
purchase of the product , also forms an important part of the online shopping website.
When it comes to tracking of items service in online shopping most of the respondent think
that it is an important service which allows the user to track their items in transit.

38
Q6. Issues regarding online shopping

People may select more than one checkbox, so percentages may add up to more than 100%.

Product
No Possibility highly Too much Security Physical
guarantee of forgery priced clutter issue examination
26 19 8 17 44 74

Issue of Online Shopping

80
70
60
50
40
30
20 Issue of Online Shopping
10
0

Illustration:

The above data determines that physical examination that is the tangibility of the
product is the important issue when it comes to online shopping.

The other factor which demotivates the user to shop online is the security issue,
which consists of issues like phishing, hacking of accounts etc.

39
Q7. Where do you shop for grocery items?

People may select more than one checkbox, so percentages may add up to more than
100%.

Local
Kirana Ration Shop Sabzi Mandi Supermarkets
85 12 20 34

Shopping Centres
90

80

70

60

50

40 Shopping Centres

30

20

10

0
Local Kirana Ration Shop Sabzi Mandi Supermarkets

Illustration:

The above graph depicts that most of the respondents shop from supermarket for grocery
items. The reason for shopping from the particular shopping centre can be depicted
below.

40
Q8. Parameters for shopping grocery at a particular shop.

People may select more than one checkbox, so percentages may add up to more than
100%.

Price Quality Variety Proximity Discounts/Offers

Local Kirana 47 34 22 85 25

Ration Shop 63 23 33 36 29

Sabzi Mandi 47 50 64 34 26

Supermarkets 65 77 80 58 73

90

80

70

60

Price
50
Quality
Variety
40
Proximity
Discounts/Offers
30

20

10

0
Local Kirana Ration Shop Sabzi Mandi Supermarkets

41
Illustration:

The above graph depicts that, when it comes to price factor people prefer to shop from
supermarket and ration shop as these shopping centres offers grocery items at wholesale
prices.

User prefers to shop from supermarket when it comes to the quality of the product.

When it comes to availability of variety of grocery items offered at a particular centre,

user prefer supermarket centre of shopping.

From the above graph we can determine that user choose local kirana stores for
shopping grocery items as they are proximate to their home.

User prefer supermarket to shop grocery items as they offer more discounts & offers
compared to the other shopping centres.

42
 Q9. If given an option to you buy grocery online will you buy?

Yes No Maybe
37 28 35

Option To Buy Grocery Online

Yes
No
Maybe

Illustration:

The above graph depicts that around 37% of respondent are willing to buy grocery online
if the option is given.

The remaining percentage of the respondent may or may not buy grocery online due the
factors like physical examination and security issues.

43
Q10. Do you think buying grocery online is beneficial?

Yes No Total
116 84 200

Beneficial

Yes
No

Illustration:

The above diagram depicts that most of the respondent think that buying grocery is
beneficial which can be determined from the next question.

The remaining respondent thinks that online grocery shopping will be not beneficial due
the factors like forgery products, highly priced products and no guarantee of the product.

44
Q11. If yes, why do you think is beneficial?

People may select more than one checkbox, so percentages may add up to more than
100%.

Easy to Discount & Saves Avoid long

order Variety Offers time queues
46 39 35 71 58

Beneficial Factors
80

70

60

50

40
Beneficial Factors
30

20

10

0
Easy to Order Variety Discount & Saves Time Avoid Long
Offers Queues

Illustration:

The above graph depicts that user respondent think that online shopping will be
beneficial as it will save their time to shop for grocery items.

The next relating aspect why consumer will shop grocery online as it will allow the user to
avoid long queues resulting in reduction in time spent in shopping.

The other factors why online grocery shopping will be beneficial as it will allow the user
to shop all the grocery at a particular place with discounts and offers.

45
CHAPTER 5

46
FINDINGS FROM SECONDARY DATA:

Following are the findings from the analysis of the secondary data collected from various websites about
online grocery stores:

❖ Most of the online grocery shops serve in eight metro cities of India and not outside it.
❖ Perishable nature of many grocery items is one of the major cause behind the limited area of service
of the online store.
❖ Internet penetration is also a hindrance in limited service.
❖ Most of the ecommerce websites cites lack of communication and transportation facility as a major
road block in providing nationwide service.
❖ Non availability of goods at one shop or store also creates obstacle in providing wide area service.
❖ Return of goods which can be loosely consumed is also a major deterrence.

FINDINGS FROM PRIMARY DATA:

Total of 200 respondents were questions for collecting the sample. Out of which 110 were female and 90
were male. Following are the findings deducted from the primary data collected from the respondents:

❖ 40 percent (80 people) user of online grocery store are from age group of 18-24 years which shows
that online grocery is mostly preferred by youth and working people.
❖ 59.5 percent (119 people) are from service class who prefer online grocery store due to convenience
and 24x7 availiablity
❖ Most people go for online grocery store when they need home delivery of product and don’t have
time to visit the local store.
❖ Most loved feature of online shopping is the huge discount given by them.
❖ Local grocery store is the most preferred destination for grocery shopping.

On the down side, following are the disadvantages of the online store:

❖ Transactional related forgery and physical verification are two major deterrence in online shopping.

❖ Cases of products being different from sample or image is also a major point of concern.

❖ Deduction of transactional charge in case of return of product is also sways away the customers.

47
CHAPTER 6

48
6. Bibliography And Webliography

http://www.firstpost.com/tech/indias-e-commerce-market-to-touch-260-bn-by-2025-report-
255350.html

http://online.wsj.com/article/SB10001424052702303816504577308652286295634.h tml

http://www.businessworld.in/businessworld/businessworld/content/Services-Economy-
Moves-Online.html?storyInSinglePage=true

http://trak.in/tags/business/2011/08/23/india-online-internet-users-survey-report-2011/

http://www.boston.com/business/blogs/global-business-
hub/2012/03/the_sizzling_in.html

http://www.imediaconnection.in/article/806/Research/mobile-commerce-in-india-
buzzcitys-report.html

http://informationmadness.com/blog/965-mobile-commerce-in-india.html

http://www.sooperarticles.com/business-articles/e-business-articles/key-success-online-
retailing-appealing-women-128808.html

http://blog.dreamstarts.in/survival-of-e-commerce-startups-in-india/#more-161

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

49
Annexure

50
 Questionnaire on Online Grocery Store
Name:

Gender:-

□ Male
□ Female

Age:-

□ 18-24
□ 25-30
□ 30 and above

Occupation:-

□ Student
□ Service
□ Business

Income Level:-

□ 1 lakh – 5 lakhs
□ 5 lakhs – 10 lakhs
□ 10 lakhs and above

Q1. Which item you shop online?

□ Apparels
□ Books
□ Electronics
□ Food
□ Games
□ Music
□ Any other(Please specify)

Q2. How much money do you spent in online shopping? (Rupees)

□ 100-500
□ 500-1000
□ 1000-5000
□ 5000 & Above

Q3. When do you feel the need to shop online?

□ When I need home delivery
□ When I want something unique and special
□ When I need to compare prices
□ When I don’t have the time to find things by different markets
□ Any other(Please specify)

51
 Q4. What features in online shopping website attracts you?
□ The design of a website
□ Discounts offered
□ Advertisement
□ Variety
□ Value for money
□ Any other(Please specify)

Q5. While shopping what affects your satisfaction the most?

Feature Very important Somewhat important Not important

Design
User friendly
Adequate search option
Product assortments
Payment options
Cash on delivery
Net banking
Debit/ Credit Cards
Product Options
Offers & Discounts
Free Shipping
Security
Id & password
Order confirmation screen
Delivery
Tracking of items

Q6. What are your issues regarding online shopping?

□ No guarantee
□ Possibility of forgery
□ Product highly priced
□ Too much clutter
□ Security issue
□ Physical examination
□ Any other(Please specify)

Q7. Where do you shop for grocery items?

□ Local Kirana
□ Ration Shop
□ Sabzi Mandi
□ Supermarkets

52
 Q8. Tick more than one parameter for the particular shopping place regarding
why you choose certain grocery shops for shopping?

Shopping Parameters
Places Price Quality Variety Proximity to home Discounts/Offers
Local Kirana
Ration Shop
Sabzi Mandi
Supermarkets

Q9. If given an option to buy grocery online will you buy online?
□ Yes
□ No
□ May be

Q10. Do you think buying grocery online is beneficial?

□ Yes
□ No

Q11. If yes, why do you think is beneficial?

□ Easy to order
□ Variety at one shop
□ Discounts & offers
□ Saves time
□ Avoid long queues
□ Any other(Please specify)

53