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Sasmira’s Institute of Management Studies & Research
PROJECT REPORT
ON
POTENTIALS OF CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING OF
GROCERY PRODUCTS V/s NON-GROCERY PRODUCTS
SUBMITTED TO
SASMIRA’S INSTITUTE OF MANAGEMENT STUDIES & RESEARCH,
SASMIRA MARG, WORLI, MUMBAI
BY
AMOGH D. KASPALE
Roll No. 82
Batch No: 2015-17
IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS),
UNIVERSITY OF MUMBAI
25th
July, 2016
TABLE OF C O N T E N T S
III Data Processing and Analysis 9
IV Findings 26
V Conclusions 29
VI Recommendations 31
34
Bibliography 34
Questionnaire 35
Chapter No. Title Page No.
Declaration from student I
Certificate from Guide II
Certificate from Company III
Acknowledgement IV
Chapter Scheme V
List of Graphs VI
Executive Summary VII
I Introduction 1
1.1 Company profile 1
1.2 What consumers buy 1
1.3 What consumers watch 2
1.4 Company history 2
1.5 Becoming a public company 5
II Research Methodology 6
2.1 Research Objective 7
2.2 Determined information for
conducting research
7
2.3 Respondents and tool 7
2.4 Research Flow 8
I
DECLARATION
I, Mr. AMOGH D. KASPALE
Hereby declare that this project report is the record of authentic work carried
out by me during the period from 2nd
May 2016 to 2nd
July 2016 and has not been
submitted to any other University or Institute for the award of any degree /
diploma etc.
Signature
Mr. AMOGH D. KASPALE
Date:
II
CERTIFICATE
This is to certify that Mr. AMOGH DINESH KASPALE
of Sasmira’s Institute of Management Studies & Research has
successfully completed the project work titled POTENTIALS OF
CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING OF
GROCERY PRODUCTS V/s NON-GROCERY PRODUCTS in partial
fulfillment of requirement for the completion MMS as prescribed by the
University of Mumbai.
This project report is the record of authentic work carried
out by him during the period from 2nd
May 2016 to 2nd
July 2016.
He have worked under my guidance.
Signature
Name
Project Guide (Internal)
Date: `
Counter signed by
Signature
Name
Director
Date :
III
CERTIFICATE FROM THE COMPANY
IV
ACKNOWLEDGEMENT
I would like to thank my Mentor Mr.Nielsh Deshpande for extending his helping hand
towards this project and also assigning me the topic of “POTENTIALS OF CONSUMER
BEHAVIOUR TOWARDS ONLINE SHOPPING OF GRPCERY PRODUCTS V/s NON-
GROCERY PRODUCTS”. He provided encouragement and boost in the transformation of my
Inherent internal knowledge into a real work for external audience. I would also like to
express my gratitude to the entire teaching faculty for giving there valuable time for explaining
all the topics clearly in a detailed manner.
Not to forget my friends and parents for their constant love and support.
V
CHAPTER SCHEME
Chapter No Title PageNo.
1. INTRODUCTION 1
2. RESEARCH
METHODOLOGY
6
3. DATA PROCESSING &
ANALYSIS
9
4 FINDINGS 26
5. CONCLUSION 29
6. RECOMMENDATION 31
VI
LIST OF GRAPHS/TABLE
Chapter No Title PageNo.
3. DATA PROCESSING &
ANALYSIS
9
3.1 No. of family member 10
3.1 SEC Grid 14
3.2 Working members 11
3.3 Education & occupation 12
3.4 Owned consumer durables 13
3.5 Use of devices 15
3.6 Type of internet
connection
16
3.7 Frequency of Purchase 17
3.8 Frequency of Purchase 18
3.9 Avg. spent on purchase 19
3.10 Actual Purchase location 20
3.11 Actual Purchase location 21
3.12 Preferred Purchase
location
22
3.13 Preferred Purchase
location
23
3.14 Other online activities 24
3.15 Shopping Since 25
VII
EXECUTIVE SUMMARY
TheobjectiveofconductingPOTENTIALS OF CONSUMER BEHAVIOUR TOWARDS
ONLINE SHOPPING OF GRPCERY PRODUCTS V/S NON-GROCERY PRODUCTS is to get
a fair idea among the chosen sample size how many people go online for shopping grocery
material and how many people go online for buying non-grocery articles.
This particular research was Pen & Paper type, where we were given a set of
questionnaire. The sample size for this survey was 40. Company had recruited these respondents
on the basis of their online activity, so we were just required to take their appointment and
conduct an interview.
Basically with this research study we wanted to check the consumer’s attitude, key
concern areas for consumer and how has been recent shift taking place towards online buying.
1
Chapter – I
Introduction
2
ABOUT NIELSEN
Nielsen is a leading global information and measurement company that enables
companies to understand consumers and consumer behaviour. Nielsen measures and monitors
what consumers watch (programming, advertising) and what consumers buy (categories,
brands, products) on a global and local basis. The company has a presence in approximately 100
countries spread across Africa, Asia, Australia, Europe, Middle East, North America, South
America and Russia.
David L. Calhoun is Nielsen's Executive Chairman, and Mitch Barns is Nielsen's Chief
Executive Officer. Prior to joining Nielsen in 2006, Dave Calhoun served as Vice Chairman of
The General Electric Company and President and Chief Executive Officer of GE Infrastructure,
the largest of six GE business units. He served as Nielsen CEO from to 2006 to 2014, when he
was succeeded by Barns.
While the Nielsen brand is most often associated with television ratings, those TV ratings
services comprise approximately one-quarter of the company's business and revenues. After
substantial work to simplify the company over the last several years, Nielsen today aligns their
business into two divisions: What Consumers Buy and What Consumers Watch.
1.2 What consumers buy?
Nielsen's Buy division (approx. 55% of global revenues) primarily helps packaged goods
companies and retailers (and Wall Street analysts) understand what consumers are buying in
terms of categories, brands and products. For example, it is Nielsen's data that measures how
much Diet Coke vs. Diet Pepsi is sold in stores, or how much Crest versus Colgate toothpaste is
sold. They accomplish this by purchasing and analysing huge amounts of retail data that
measures what is being sold in the store, and they combine it with household panel data that
captures everything that is brought into the home. They also can provide insights into how
changes in product offerings, pricing or marketing would change sales. Major clients include
The Coca-Cola Company, Nestle S.A., the Procter & Gamble Company, Unilever Group and
Wal-Mart.
3
1.3 What consumers watch?
Nielsen's Watch division (approx. 45% of global revenues) primarily measures what
consumers are watching (and listening to) across some devices: TV, radio, computers, etc. The
company measures consumption of programming and advertising across all distribution points.
Nielsen's ratings are used by advertisers and networks to shape the buying and selling of
advertising. Major clients include CBS, NBC Universal, News Corporation and The Walt
Disney Company.
The Nielsen Corporation, self-referentially known as The Nielsen Company, and
formerly known as ACNielsen or AC Nielsen is a global marketing research firm, with
worldwide headquarters in New York City, United States. Regional headquarters for North
America are located in the Chicago suburb of Schaumburg, Illinois. As of May 2010, it is part
of Nielsen Holdings.
1.4 Company history
Arthur C. Nielsen and the invention of "Market Share" Arthur C. Nielsen founded the AC
Nielsen Company in August 1923 with the idea of selling engineering performance surveys. It
was the first company to offer market research. The company expanded its business in 1932 by
creating a retail index that tracked the flow of food and drug purchases. This was the first retail
measurement of its kind and for the first time allowed a company to determine its "share" of the
market—the origination of the concept of "market share" Arthur C. Nielsen is credited with
coining this business term.
Mergers, acquisitions, strategic alliances and divestitures
Nielsen was acquired by the Dun & Bradstreet Company in 1984. In 1996, D&B divided
the company into two separate companies: Nielsen Media Research, which was responsible for
TV ratings, and AC Nielsen, which was responsible for consumer shopping trends and box-
office data. In 1999, Nielsen Media Research was acquired by the Dutch publishing company
VNU (Verenigde Nederlandse Uitgeverijen). VNU later acquired AC Nielsen and recombined
4
the two businesses in 2001. In between, VNU sold off its newspaper properties to Wegener and
its consumer magazines to Sanoma. The company's publishing arm also owned several
publications including The Hollywood Reporter and Billboard magazine. VNU combined the
Nielsen properties with other research and data collection units including BASES, Claritas, HCI
and Spectra. VNU also acquired companies that added to its measurement capabilities.
In 2004, Nielsen began a joint venture called AGB Nielsen Media Research with WPP
Group's AGB Group, a European competitor which provides similar services.
In 2006, VNU acquired a majority stake in Buzzmetrics, a company which measures
consumer-generated media online. Under the new ownership, Nielsen bought the remaining
shares of the company in 2007. In the same year, Nielsen acquired Telephia, which measures
mobile media, and Bilesim Medya, a Turkish advertising intelligence firm.
In June 2010, Nielsen paired with McKinsey & Company to create the social media
consulting company NM Incite. NM Incite has operations in 13 global markets, including: US,
UK, Germany, Spain, Italy, Australia, New Zealand, China, Japan, India, Brazil, Canada and
Korea.
In February 2012, Nielsen launched The Demand Institute in collaboration with The
Conference Board. The Demand Institute is a non-profit, non-advocacy organization focused on
helping business and government leaders understand how consumer demand is evolving and
shifting around the world.
On June 17, 2013, Nielsen announced that Onex Corp (TSX: OCX) had completed the
acquisition of Nielsen Expositions for $950 million in cash consideration. Nielsen Expositions
operated tradeshows in the United States. The company was renamed Emerald Expositions Inc.
after the transaction.
On May 27, 2015, Nielsen acquired Innerscope Research, which specialized in consumer
neuroscience using biometrics, eye tracking and facial coding. Nielsen renamed its combined
offering as Nielsen Consumer Neuroscience, and named Dr. Carl Marci as Chief Neuroscientist.
On March 10, 2016, Nielsen acquired Mumbai-based mobile usage measurer Informate Mobile
Intelligence for an undisclosed amount, in a move that will help the US consumer research
company improve mobile measurement globally.
5
1.5 Becoming a public company
Nielsen was a private company from 2006 through 2011. On January 25, 2011 the
company listed itself on the New York Stock Exchange and issued an Initial Public Offering
(IPO) that raised $1.8 billion in the largest private equity-backed U.S. IPO since 2006.
6
CHAPTER – II
RESEARCH METHODOLOGY
7
2.1 Research Objective
The main objective of conducting this research is to check what is the consumer behavior
towards online shopping of grocery products and non-grocery products. This research would
help us to know the whether consumers are buying grocery products or non-grocery products
through online shopping.
2.2 Determined information for conducting research
 No. of family members.
 Who all are working in family
 Respondents occupation
 Device used for internet access
 Frequency of buying grocery and non-grocery products
 Expenditure on buying grocery and non-grocery products
 Source of purchase
 Preferred source of purchase
 Other activities done online
 Using online shopping since
2.3 Respondents and tools
This survey was held in Mumbai region. Nielsen had recruited 40 respondents depending
upon its eligibility. This survey was conducted by visiting all 40 respondents at their home.
To conduct this survey Printed questionnaire was prepared by company. We had to write
down all the information which respondent is providing. The questionnaire had multiple choice
questions where we just need to mark the correct option for better results.
8
2.4 Research Flow
 Collecting list of respondents from Executive in-charge.
 Calling each of the respondents and taking their appointment.
 Prepare appointment sheet and submitting to Executive.
 Reaching at respondents house at given time.
 Conduct an interview with the help of given questionnaire.
 Try to extract maximum information from respondents.
9
CHAPTER – III
DATA PROCESSING AND ANALYSIS
10
After conducting this research with the given questionnaire we came up with some data.
Later this data was submitted to Nielsen. But I have also generated some graphics such as
graphs and charts form the acquired data with the help of Microsoft Excel to understand the
consumer behavior.
Following data is collected from Sample of 40. Respondents were recruited by Nielsen.
Note : Here sample size of 40 represents 40 different families.
Q.1 How many Family members reside in this Household?
Ans.
Ghrap No. 3.01
As a pie diagram shows in sample size of 40 there are six types of families. 3 member
families are about 24%, 4 member families are about 26%, 5 member families are about 29%, 6
member families are 15% and 6&more member families are only 6% of total sample size.
3 Members
20%
4 Members
37%
5 Members
25%
6 Members
13%
6 & more
Members
5%
No. of family members
11
Q.2 who all are working in your family?
Ans.
Ghrap No. 3.02
In sample size of 40 families we found that there are total 58 members are contributing
towards family income. The bifurcation for the same is shown in above diagram.
15
2
35
2
4
Working Members
Self
Parents
Spouse
Siblings
Sis-in-Law/Bro-in-Law
12
Q.3 Can you tell me about your education and Occupation?
Ans.
Ghrap No. 3.03
In sample of 40 respondents, all were graduated. Among those 40 people only 15
respondents are working and rests were handling households. These non-working graduates
include housewives, whereas working graduates includes men (husband) as well as women
(Wife).
40
15
25
0
5
10
15
20
25
30
35
40
45
Education and Occupation
Graduate
Graduate and working
Graduate and not working
13
Q.4 Can you tell me which all consumer durable you or your family own?
Ans.
Ghrap No. 3.04
In sample of 40 respondents 7 consumer durables are being used by all 40 respondents.
The consumer durable like car is used only by 10 respondents, two-wheeler is used by 35
respondents, Air conditioner is used by 30 respondents and Agriculture Land is owned by only
25 respondents.
0
5
10
15
20
25
30
35
40
40 40 40
35
40 40 40 40
10
30
25
No.ofRespondents
Owned Consumer Durables
14
With the help of Q.3 and Q.4 we can make the Socio Economic Classification (SEC), which
as follows.
Table No. 3.01
After processing data for Education, Occupation and owned consumer durables it was
found that Education for all 40 respondents was same i.e. Graduation, but there is difference
only in the owned consumer durables.
Thereareabout35respondentswhoownsmorethan9consumerdurablesandarealsograduatesothese
respondentswillbeclassifiedA1asperSocioEconomicClassification. Remaining5respondentsareowning
only7consumerdurablessotheyareclassifiedasA2asperSEC.
15
Q.5 What all devices do you have at household to access internet?
Ans.
Ghrap No. 3.05
In sample size of 40, every respondent uses his/her Smartphone to access the internet. 30
% of sample size uses Laptop/desktop/Tablet to access internet and 30% of sample size uses
both Smartphone as well as Laptop/desktop/Tablet.
40%
30%
30%
Use of Device
Smartphone
Laptop/Desktop/Tablets
Both the types
16
Q.6 What type of internet connection do you have at your home?
Ans.
Ghrap No. 3.06
After the survey it was found that 30 respondents are using Wifi facility, Dongle and
Broadband connection is used by 5 respondents respectively.
Wifi
Dongle
Broadband Cable
0
5
10
15
20
25
30
No.of respondents
Wifi 30
Dongle 5
Broadband Cable 5
Type of Internet Connection
17
Q.7 How frequently does your household buy following Categories (Grocery Products)?
Ans.
Ghrap No. 3.07
We checked how frequently respondent buy Grocery Products. To simplify we divided
Grocery products in 5 categories. The category like Fresh-dairy and veggies is purchased by
respondents on daily basis. Grain, pulses, oil, ghee is purchased once in a month and once in a
2-3 months. Only 5 respondents buy packaged food daily otherwise the purchase is divided in
once a month and once in a 2-3 month.
0
40
50 0
15
20
0
20
25 25
20
0 0
15 15
0
5
10
15
20
25
30
35
40
45
Grain,
Pulses, Oil,
Ghee
Fresh-Dairy,
Veggies
Packaged
Food-Tea,
Biscuits,
Noodles
Home Care Personal
Care
No.ofRespondents
Daily
Once a week
Once a month
Once in 2-3 months
18
Q.8 How frequently does your household buy following Categories (Non-Grocery
Products)?
Ans.
Ghrap No. 3.08
Men’s clothing purchase is once a month only. Otherwise other category of products like
Women’s clothing, Kid’s clothing, Footwear & accessories are purchased frequently as
compared to Men’s clothing.
0 5 0 5 0
40
15
30
15
30
0
20
10
20
10
0
5
10
15
20
25
30
35
40
45
No.ofRespondents
Once in 2-3 weeks
Once in a month
Once in 2-3 months
19
Q.9 Can you tell us for each category listed below, how much do you spend on an average
per month or at last purchase occasion?
Ans.
Ghrap No. 3.09
The above diagram is giving idea about average spending of 40 respondents in both the
categories i.e. grocery products and non-grocery products. By looking at the diagram we come
to know that in sample size of 40 spending done on Non-grocery products is more than grocery
products.
0
500
1000
1500
2000
2500
3000
3500
4000
Amount(Rs.)
20
Q.10 Thinking about the purchases done in last 3 months, can you tell us where all did you
buy these from?
Ans.
Ghrap No. 3.10
In sample of 40 for grocery products category only Fresh-Dairy, Veggies is not purchased
online otherwise every other category is being purchased from all sources like local market,
modern market and online market.
0%
20%
40%
60%
80%
100%
10
25
10
5 5
15
15
20
20
15
15
0
10
15
20
Grocery Product Purchase Location
Local Market Modern Market Online
21
Q.11 Thinking about the purchases done in last 3 months, can you tell us where all did you
buy these from?
Ans.
Ghrap No. 3.11
In non-grocery products all locations are tapped by all 40 respondents. All the categories
are showing high purchasing from Online. Men clothing is mostly purchased from Modern
stores like supermarkets, malls and brand outlets.
0%
20%
40%
60%
80%
100%
Men's
Clothing
Women's
Clothing
Kid's Clothing Footwear Accessories
10
5 5
10 10
20
10 10
10 12
10
25 25
20 18
Non-Grocery Product Purchase Location
Local Markets Modern Markets Online
22
Q.12 Which channel is most preferred for purchasing Grocery products?
Ans.
Ghrap No. 3.12
With the help of this particular question we could make out that in a sample size of 40
there are maximum respondents who says that Online is their preferred way for purchasing
products. Only in the case of Fresh-Dairy, Veggies respondents prefer going for local and
modern markets.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
5
35
5
0 0
10
5
15
15
10
25
0
20
25
30
Online
Modern Markets
Local Markets
23
Q.13 Which channel is most preferred for purchasing Non-Grocery products?
Ans.
Ghrap No. 3.13
With the help of this particular question we could make out that in a sample size of 40 there are
maximum respondents who says that Online is their preferred way for purchasing products. For
accessories maximum respondents go for online shopping.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Men's
Clothing
Women's
Clothing
Kid's
Clothing
Footwear Accessories
5 5 5 5
10 10 10
15
5
25 25 25
20
35 Online
Modern Market
Local Market
24
Q.14 Can you tell me which of the following activities do you do online?
Ans.
Ghrap No. 3.14
Apart from shopping of products we got to know that there are many other services
which are being used online. But some services like purchasing a book online and booking hotel
is usually done offline, which is using sources other than online.
15
25
15
5
30
35
5
15
25 15 25 35 10 5 40 35 25
0
5
10
15
20
25
30
35
40
45
Pay utility
bills
Banking Book
travel
tickets
Book
movie
tickets
Book
Hotels
Purchase
book
Stram
Online
Content
Book Cab Pay for
mobile
recharge
NO YES
25
Q.15 Since how long Online Shopping has been done?
Ans.
Ghrap No. 3.15
In sample size of 40 it was found that 38% of respondents are using online shopping from
last 2-3 years. Only 12% of respondents are using Online shopping since last year only.
12%
38%
25%
25%
Using Since
1 Year
2-3 Years
3-4 Years
More than 4 Years
26
Chapter - IV
Findings
27
Findings
Inthebeginningwestudiedaboutaveragehousecountforthesamplesize40.There are six types of
families. 3 member families are about 24%, 4 member families are about 26%, 5 member
families are about 29%, 6 member families are 15% and 6&more member families are only 6%
of total sample size.
Insamplesizeof40wefoundthatthereareabout58members.Herethesamplesizeisconsideredasone
familythereforetheno.workingmembersaremorethansamplesize.Inthese58workingmembersmajorly
spousesarethere.
Onlaterstageweanalyzedtheeducationandoccupationofall40respondents.All40weregraduatedand
15amongthemwereworking&restswerenotworking.Thisnon-workingcategoryincludesallhousewives.
Thereareabout35respondentswhoownsmorethan9consumerdurablesandarealsograduatesothese
respondentswillbeclassifiedA1asperSocioEconomicClassification. Remaining5respondentsareowning
only7consumerdurablessotheyareclassifiedasA2asperSEC.
Thereareabout40%ofsamplesizeusessmartphonetoaccessinternetand30%useslaptop/desktop/tablet,
butrest30%usesbothofthesedevicestoaccessinternet.
75%ofsamplesizeusesWi-Fitoaccessinternetandrest25%isequallyacquiredbydongleand
broadbandcabl
We checked how frequently respondent buy Grocery Products. To simplify we divided
Grocery products in 5 categories. The category like Fresh-dairy and veggies is purchased by
respondents on daily basis. Grain, pulses, oil, ghee is purchased once in a month and once in a
2-3 months equally by sample size of 40. Only 5 respondents buy packaged food daily. 25
respondents’ buys homecare and personal care products once in a month and rest 15
respondents go for purchase in once a 2-3 month.
Men’s clothing purchase is once a month only. Otherwise other category of products like
Women’s clothing, Kid’s clothing, Footwear & accessories are purchased frequently as
compared to Men’s clothing.
28
As per the study amount spent on grocery product is comparatively less than non-grocery
products. The amount spent on Fresh-Dairy, Veggies is highest in grocery products.
About 27.5% of grocery products are purchased from local markets, 42.5% of grocery is
purchased from modern markets and rest 30% are buying online.
In non-grocery products around 49% products are purchased online and rest from local
and modern markets.
Online is preferred purchase location for grocery products with about 50% of sample size
and for non-grocery products 65% sample size prefers online.
In sample size of 40 it was found that 38% of respondents are using online shopping from
last 2-3 years. Only 12% of respondents are using Online shopping since last year only. Rest
50% is equally divided by 3-4year old users and more than 4year old users.
29
Chapter– V
Conclusions
30
From the above study we can conclude few things.
 This research shows that online shopping is having very bright future in India.
 Perception towards online shopping is getting better in India.
 With the use of internet, consumers can shop anywhere, anything and anytime with easy and
safe payment options.
 Consumers can do comparison shopping between products, as well as, online stores.
 There are about 62.5 % families which have around 3 to 5 members in each family.
 All 40 respondents were graduated and About 87.5% of sample size comes under A1
classification as per SEC and rest 12.5% comes under A2 classification as per SEC (Socio
EconomicClassification).
 The 40% of sample size using Smartphone to access internet.
 45% of sample size purchases Grocery products once in a month, whereas 65% of sample size
purchases non-grocery products once in a month.
 Actual online grocery product purchase is done by 30% of total sample size whereas the online
non-grocery product purchase is done by 49% of total sample size. Straight away there is 19%
increase.
 On the other hand 50% of total sample size prefers online grocery product shopping and 65% of
total sample prefers online non-grocery shopping. Here also there is drastic difference between
preference of grocery product and non-grocery product.
 The overall conclusion could be that the online grocery product shopping is less preferred than
online non-grocery product.
 Consumers are going more towards online shopping of non-grocery products.
31
Chapter-VI
Recommendations
32
Recommendation
 After studying entire research we see that there is huge gap between online purchase of grocery
products and purchase of non-grocery products.
 The concept of online grocery product shopping is emerging in India, so proper marketing
strategies needed to apply.
 As online shopping of non-grocery product has been there in India for almost long time, so they
have built up the trust and faith in consumers mind.
 In case of online grocery shopping consumer is missing that touch when he goes to buy some of
grocery category item such as vegetables.
 As online grocery shopping is slowly coming up, such ecommerce companies should look out
for ideas to gain trust and faith of customer like online non-grocery products have created.
 Such companies should make effective strategies to reach out to customers with the price tag of
local vendors as some ecommerce companies are charging little extra than what local vendor or
supermarket is offering for same grocery product.
 Some of the things, which the consumers should take into considerations while online shopping,
are:
 Use a secure browser. The browser should comply with industry security standards, such as
Secure Sockets Layer (SSL).
 Consumers should shop with the known companies, as it is easy to set up a shop online under
any name. If they are not familiar with a merchant they should ask for paper catalogue or
brochure to get a better idea about the merchandise and services and should find about the
company’s refund and return policies. Consumers should also search for the reviews of the
company.
 Read the privacy policy on the site of the companies before shopping as this helps to know what
information is being collected and how it would be used.
33
 Keep a print record of the transactions this would come handy in case of any fraud.
 One should find out how the company secures the financial and personal information before
paying the bills.
 The personal information should be kept private like address, telephone numbers, email, etc.
One should avoid using telephone numbers or date of birth for establishing a password instead
should use a combination of numbers, letters and symbols.
 Proper research should be done about countries shopping laws and merchant when shopping
from other countries.
34
BIBLIOGRAPHY
 http://www.nielsen.com/in/en.html
 Wikipedia
 https://www.scribd.com/
35
QUESTIONNAIRE
Q.1 Could you please tell me that how many family members reside in this household?
o 3
o 4
o 5
o 6
o 7
o 8
Q.2 Who all are working members among these?
o Self
o Parents
o Spouse
o Siblings
o Sis-in-law/Bro-in-law
Q.3 Can you please tell me about education?
_____________________________________________________________________________
_____________________________________________________________________________
__________
36
Q.4 Can you tell me which all consumer durables you/your family owns?
o Electric Connection
o Ceiling Fan
o LPG stove
o Two Wheeler
o Color Television
o Refrigerator
o Washing Machine
o Personal Computer/Laptop
o Car
o Air Conditioner
o Agri cultural Land
Q.5 What all devices do you have at household to access internet?
o Smartphone
o Laptop/desktop/Tablet
o Others______________________________________________________________________
Q.6 Could you tell me what type of internet connection do you have at your home?
o Wi-Fi
o Dongle
o Broadband Cable
37
Q.7 How frequently does your household buy these categories?
Daily Once
a
week
Once
in a 2-
3
week
Once
in a
month
Once
in 2-3
month
Once
in a 6
month
Grain,
Pulses,
Oil, Ghee
Fresh-
Dairy,
Veggies
Packaged
Food
Home
care
Personal
Care
Men
Clothing
Women
Clothing
Kid’s
Clothing
Footwear
Accessori
es
38
Q.8 Can you tell us for each category listed below, how much do you spend on an average?
Amount
(Rs.)
Grain, Pulses, Oil,
Ghee
Fresh-Dairy,
Veggies
Packaged Food
Home care
Personal Care
Men Clothing
Women Clothing
Kid’s Clothing
Q.9 Thinking about the purchases, can you tell us where all did you buy these from?
Local
Markets
Modern
Market
Online
Grain, Pulses,
Oil, Ghee
Fresh-Dairy,
Veggies
Packaged Food
Home care
Personal Care
Men Clothing
Women
Clothing
39
Q.10 Which channel is the most preferred channel for purchasing categories mentioned below?
Local
Markets
Modern
Market
Online
Grain, Pulses,
Oil, Ghee
Fresh-Dairy,
Veggies
Packaged Food
Home care
Personal Care
Men Clothing
Women
Clothing
Q.11 Can you please tell me which of the following activities are done using internet?
Yes No
Pay utility bills
Banking
Book travel tickets
Book movie tickets
Book Hotels
Purchase book
Stram Online Content
Q.12 Since how long online shopping has been done?
_____________________________________________________________________________
_____________________________________________________________________________
__________

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POTENTIALS OF CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING OF GROCERY PRODUCTS V/s NON-GROCERY PRODUCTS

  • 1. Sasmira’s Institute of Management Studies & Research PROJECT REPORT ON POTENTIALS OF CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING OF GROCERY PRODUCTS V/s NON-GROCERY PRODUCTS SUBMITTED TO SASMIRA’S INSTITUTE OF MANAGEMENT STUDIES & RESEARCH, SASMIRA MARG, WORLI, MUMBAI BY AMOGH D. KASPALE Roll No. 82 Batch No: 2015-17 IN PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI 25th July, 2016
  • 2. TABLE OF C O N T E N T S III Data Processing and Analysis 9 IV Findings 26 V Conclusions 29 VI Recommendations 31 34 Bibliography 34 Questionnaire 35 Chapter No. Title Page No. Declaration from student I Certificate from Guide II Certificate from Company III Acknowledgement IV Chapter Scheme V List of Graphs VI Executive Summary VII I Introduction 1 1.1 Company profile 1 1.2 What consumers buy 1 1.3 What consumers watch 2 1.4 Company history 2 1.5 Becoming a public company 5 II Research Methodology 6 2.1 Research Objective 7 2.2 Determined information for conducting research 7 2.3 Respondents and tool 7 2.4 Research Flow 8
  • 3. I DECLARATION I, Mr. AMOGH D. KASPALE Hereby declare that this project report is the record of authentic work carried out by me during the period from 2nd May 2016 to 2nd July 2016 and has not been submitted to any other University or Institute for the award of any degree / diploma etc. Signature Mr. AMOGH D. KASPALE Date:
  • 4. II CERTIFICATE This is to certify that Mr. AMOGH DINESH KASPALE of Sasmira’s Institute of Management Studies & Research has successfully completed the project work titled POTENTIALS OF CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING OF GROCERY PRODUCTS V/s NON-GROCERY PRODUCTS in partial fulfillment of requirement for the completion MMS as prescribed by the University of Mumbai. This project report is the record of authentic work carried out by him during the period from 2nd May 2016 to 2nd July 2016. He have worked under my guidance. Signature Name Project Guide (Internal) Date: ` Counter signed by Signature Name Director Date :
  • 6. IV ACKNOWLEDGEMENT I would like to thank my Mentor Mr.Nielsh Deshpande for extending his helping hand towards this project and also assigning me the topic of “POTENTIALS OF CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING OF GRPCERY PRODUCTS V/s NON- GROCERY PRODUCTS”. He provided encouragement and boost in the transformation of my Inherent internal knowledge into a real work for external audience. I would also like to express my gratitude to the entire teaching faculty for giving there valuable time for explaining all the topics clearly in a detailed manner. Not to forget my friends and parents for their constant love and support.
  • 7. V CHAPTER SCHEME Chapter No Title PageNo. 1. INTRODUCTION 1 2. RESEARCH METHODOLOGY 6 3. DATA PROCESSING & ANALYSIS 9 4 FINDINGS 26 5. CONCLUSION 29 6. RECOMMENDATION 31
  • 8. VI LIST OF GRAPHS/TABLE Chapter No Title PageNo. 3. DATA PROCESSING & ANALYSIS 9 3.1 No. of family member 10 3.1 SEC Grid 14 3.2 Working members 11 3.3 Education & occupation 12 3.4 Owned consumer durables 13 3.5 Use of devices 15 3.6 Type of internet connection 16 3.7 Frequency of Purchase 17 3.8 Frequency of Purchase 18 3.9 Avg. spent on purchase 19 3.10 Actual Purchase location 20 3.11 Actual Purchase location 21 3.12 Preferred Purchase location 22 3.13 Preferred Purchase location 23 3.14 Other online activities 24 3.15 Shopping Since 25
  • 9. VII EXECUTIVE SUMMARY TheobjectiveofconductingPOTENTIALS OF CONSUMER BEHAVIOUR TOWARDS ONLINE SHOPPING OF GRPCERY PRODUCTS V/S NON-GROCERY PRODUCTS is to get a fair idea among the chosen sample size how many people go online for shopping grocery material and how many people go online for buying non-grocery articles. This particular research was Pen & Paper type, where we were given a set of questionnaire. The sample size for this survey was 40. Company had recruited these respondents on the basis of their online activity, so we were just required to take their appointment and conduct an interview. Basically with this research study we wanted to check the consumer’s attitude, key concern areas for consumer and how has been recent shift taking place towards online buying.
  • 11. 2 ABOUT NIELSEN Nielsen is a leading global information and measurement company that enables companies to understand consumers and consumer behaviour. Nielsen measures and monitors what consumers watch (programming, advertising) and what consumers buy (categories, brands, products) on a global and local basis. The company has a presence in approximately 100 countries spread across Africa, Asia, Australia, Europe, Middle East, North America, South America and Russia. David L. Calhoun is Nielsen's Executive Chairman, and Mitch Barns is Nielsen's Chief Executive Officer. Prior to joining Nielsen in 2006, Dave Calhoun served as Vice Chairman of The General Electric Company and President and Chief Executive Officer of GE Infrastructure, the largest of six GE business units. He served as Nielsen CEO from to 2006 to 2014, when he was succeeded by Barns. While the Nielsen brand is most often associated with television ratings, those TV ratings services comprise approximately one-quarter of the company's business and revenues. After substantial work to simplify the company over the last several years, Nielsen today aligns their business into two divisions: What Consumers Buy and What Consumers Watch. 1.2 What consumers buy? Nielsen's Buy division (approx. 55% of global revenues) primarily helps packaged goods companies and retailers (and Wall Street analysts) understand what consumers are buying in terms of categories, brands and products. For example, it is Nielsen's data that measures how much Diet Coke vs. Diet Pepsi is sold in stores, or how much Crest versus Colgate toothpaste is sold. They accomplish this by purchasing and analysing huge amounts of retail data that measures what is being sold in the store, and they combine it with household panel data that captures everything that is brought into the home. They also can provide insights into how changes in product offerings, pricing or marketing would change sales. Major clients include The Coca-Cola Company, Nestle S.A., the Procter & Gamble Company, Unilever Group and Wal-Mart.
  • 12. 3 1.3 What consumers watch? Nielsen's Watch division (approx. 45% of global revenues) primarily measures what consumers are watching (and listening to) across some devices: TV, radio, computers, etc. The company measures consumption of programming and advertising across all distribution points. Nielsen's ratings are used by advertisers and networks to shape the buying and selling of advertising. Major clients include CBS, NBC Universal, News Corporation and The Walt Disney Company. The Nielsen Corporation, self-referentially known as The Nielsen Company, and formerly known as ACNielsen or AC Nielsen is a global marketing research firm, with worldwide headquarters in New York City, United States. Regional headquarters for North America are located in the Chicago suburb of Schaumburg, Illinois. As of May 2010, it is part of Nielsen Holdings. 1.4 Company history Arthur C. Nielsen and the invention of "Market Share" Arthur C. Nielsen founded the AC Nielsen Company in August 1923 with the idea of selling engineering performance surveys. It was the first company to offer market research. The company expanded its business in 1932 by creating a retail index that tracked the flow of food and drug purchases. This was the first retail measurement of its kind and for the first time allowed a company to determine its "share" of the market—the origination of the concept of "market share" Arthur C. Nielsen is credited with coining this business term. Mergers, acquisitions, strategic alliances and divestitures Nielsen was acquired by the Dun & Bradstreet Company in 1984. In 1996, D&B divided the company into two separate companies: Nielsen Media Research, which was responsible for TV ratings, and AC Nielsen, which was responsible for consumer shopping trends and box- office data. In 1999, Nielsen Media Research was acquired by the Dutch publishing company VNU (Verenigde Nederlandse Uitgeverijen). VNU later acquired AC Nielsen and recombined
  • 13. 4 the two businesses in 2001. In between, VNU sold off its newspaper properties to Wegener and its consumer magazines to Sanoma. The company's publishing arm also owned several publications including The Hollywood Reporter and Billboard magazine. VNU combined the Nielsen properties with other research and data collection units including BASES, Claritas, HCI and Spectra. VNU also acquired companies that added to its measurement capabilities. In 2004, Nielsen began a joint venture called AGB Nielsen Media Research with WPP Group's AGB Group, a European competitor which provides similar services. In 2006, VNU acquired a majority stake in Buzzmetrics, a company which measures consumer-generated media online. Under the new ownership, Nielsen bought the remaining shares of the company in 2007. In the same year, Nielsen acquired Telephia, which measures mobile media, and Bilesim Medya, a Turkish advertising intelligence firm. In June 2010, Nielsen paired with McKinsey & Company to create the social media consulting company NM Incite. NM Incite has operations in 13 global markets, including: US, UK, Germany, Spain, Italy, Australia, New Zealand, China, Japan, India, Brazil, Canada and Korea. In February 2012, Nielsen launched The Demand Institute in collaboration with The Conference Board. The Demand Institute is a non-profit, non-advocacy organization focused on helping business and government leaders understand how consumer demand is evolving and shifting around the world. On June 17, 2013, Nielsen announced that Onex Corp (TSX: OCX) had completed the acquisition of Nielsen Expositions for $950 million in cash consideration. Nielsen Expositions operated tradeshows in the United States. The company was renamed Emerald Expositions Inc. after the transaction. On May 27, 2015, Nielsen acquired Innerscope Research, which specialized in consumer neuroscience using biometrics, eye tracking and facial coding. Nielsen renamed its combined offering as Nielsen Consumer Neuroscience, and named Dr. Carl Marci as Chief Neuroscientist. On March 10, 2016, Nielsen acquired Mumbai-based mobile usage measurer Informate Mobile Intelligence for an undisclosed amount, in a move that will help the US consumer research company improve mobile measurement globally.
  • 14. 5 1.5 Becoming a public company Nielsen was a private company from 2006 through 2011. On January 25, 2011 the company listed itself on the New York Stock Exchange and issued an Initial Public Offering (IPO) that raised $1.8 billion in the largest private equity-backed U.S. IPO since 2006.
  • 16. 7 2.1 Research Objective The main objective of conducting this research is to check what is the consumer behavior towards online shopping of grocery products and non-grocery products. This research would help us to know the whether consumers are buying grocery products or non-grocery products through online shopping. 2.2 Determined information for conducting research  No. of family members.  Who all are working in family  Respondents occupation  Device used for internet access  Frequency of buying grocery and non-grocery products  Expenditure on buying grocery and non-grocery products  Source of purchase  Preferred source of purchase  Other activities done online  Using online shopping since 2.3 Respondents and tools This survey was held in Mumbai region. Nielsen had recruited 40 respondents depending upon its eligibility. This survey was conducted by visiting all 40 respondents at their home. To conduct this survey Printed questionnaire was prepared by company. We had to write down all the information which respondent is providing. The questionnaire had multiple choice questions where we just need to mark the correct option for better results.
  • 17. 8 2.4 Research Flow  Collecting list of respondents from Executive in-charge.  Calling each of the respondents and taking their appointment.  Prepare appointment sheet and submitting to Executive.  Reaching at respondents house at given time.  Conduct an interview with the help of given questionnaire.  Try to extract maximum information from respondents.
  • 18. 9 CHAPTER – III DATA PROCESSING AND ANALYSIS
  • 19. 10 After conducting this research with the given questionnaire we came up with some data. Later this data was submitted to Nielsen. But I have also generated some graphics such as graphs and charts form the acquired data with the help of Microsoft Excel to understand the consumer behavior. Following data is collected from Sample of 40. Respondents were recruited by Nielsen. Note : Here sample size of 40 represents 40 different families. Q.1 How many Family members reside in this Household? Ans. Ghrap No. 3.01 As a pie diagram shows in sample size of 40 there are six types of families. 3 member families are about 24%, 4 member families are about 26%, 5 member families are about 29%, 6 member families are 15% and 6&more member families are only 6% of total sample size. 3 Members 20% 4 Members 37% 5 Members 25% 6 Members 13% 6 & more Members 5% No. of family members
  • 20. 11 Q.2 who all are working in your family? Ans. Ghrap No. 3.02 In sample size of 40 families we found that there are total 58 members are contributing towards family income. The bifurcation for the same is shown in above diagram. 15 2 35 2 4 Working Members Self Parents Spouse Siblings Sis-in-Law/Bro-in-Law
  • 21. 12 Q.3 Can you tell me about your education and Occupation? Ans. Ghrap No. 3.03 In sample of 40 respondents, all were graduated. Among those 40 people only 15 respondents are working and rests were handling households. These non-working graduates include housewives, whereas working graduates includes men (husband) as well as women (Wife). 40 15 25 0 5 10 15 20 25 30 35 40 45 Education and Occupation Graduate Graduate and working Graduate and not working
  • 22. 13 Q.4 Can you tell me which all consumer durable you or your family own? Ans. Ghrap No. 3.04 In sample of 40 respondents 7 consumer durables are being used by all 40 respondents. The consumer durable like car is used only by 10 respondents, two-wheeler is used by 35 respondents, Air conditioner is used by 30 respondents and Agriculture Land is owned by only 25 respondents. 0 5 10 15 20 25 30 35 40 40 40 40 35 40 40 40 40 10 30 25 No.ofRespondents Owned Consumer Durables
  • 23. 14 With the help of Q.3 and Q.4 we can make the Socio Economic Classification (SEC), which as follows. Table No. 3.01 After processing data for Education, Occupation and owned consumer durables it was found that Education for all 40 respondents was same i.e. Graduation, but there is difference only in the owned consumer durables. Thereareabout35respondentswhoownsmorethan9consumerdurablesandarealsograduatesothese respondentswillbeclassifiedA1asperSocioEconomicClassification. Remaining5respondentsareowning only7consumerdurablessotheyareclassifiedasA2asperSEC.
  • 24. 15 Q.5 What all devices do you have at household to access internet? Ans. Ghrap No. 3.05 In sample size of 40, every respondent uses his/her Smartphone to access the internet. 30 % of sample size uses Laptop/desktop/Tablet to access internet and 30% of sample size uses both Smartphone as well as Laptop/desktop/Tablet. 40% 30% 30% Use of Device Smartphone Laptop/Desktop/Tablets Both the types
  • 25. 16 Q.6 What type of internet connection do you have at your home? Ans. Ghrap No. 3.06 After the survey it was found that 30 respondents are using Wifi facility, Dongle and Broadband connection is used by 5 respondents respectively. Wifi Dongle Broadband Cable 0 5 10 15 20 25 30 No.of respondents Wifi 30 Dongle 5 Broadband Cable 5 Type of Internet Connection
  • 26. 17 Q.7 How frequently does your household buy following Categories (Grocery Products)? Ans. Ghrap No. 3.07 We checked how frequently respondent buy Grocery Products. To simplify we divided Grocery products in 5 categories. The category like Fresh-dairy and veggies is purchased by respondents on daily basis. Grain, pulses, oil, ghee is purchased once in a month and once in a 2-3 months. Only 5 respondents buy packaged food daily otherwise the purchase is divided in once a month and once in a 2-3 month. 0 40 50 0 15 20 0 20 25 25 20 0 0 15 15 0 5 10 15 20 25 30 35 40 45 Grain, Pulses, Oil, Ghee Fresh-Dairy, Veggies Packaged Food-Tea, Biscuits, Noodles Home Care Personal Care No.ofRespondents Daily Once a week Once a month Once in 2-3 months
  • 27. 18 Q.8 How frequently does your household buy following Categories (Non-Grocery Products)? Ans. Ghrap No. 3.08 Men’s clothing purchase is once a month only. Otherwise other category of products like Women’s clothing, Kid’s clothing, Footwear & accessories are purchased frequently as compared to Men’s clothing. 0 5 0 5 0 40 15 30 15 30 0 20 10 20 10 0 5 10 15 20 25 30 35 40 45 No.ofRespondents Once in 2-3 weeks Once in a month Once in 2-3 months
  • 28. 19 Q.9 Can you tell us for each category listed below, how much do you spend on an average per month or at last purchase occasion? Ans. Ghrap No. 3.09 The above diagram is giving idea about average spending of 40 respondents in both the categories i.e. grocery products and non-grocery products. By looking at the diagram we come to know that in sample size of 40 spending done on Non-grocery products is more than grocery products. 0 500 1000 1500 2000 2500 3000 3500 4000 Amount(Rs.)
  • 29. 20 Q.10 Thinking about the purchases done in last 3 months, can you tell us where all did you buy these from? Ans. Ghrap No. 3.10 In sample of 40 for grocery products category only Fresh-Dairy, Veggies is not purchased online otherwise every other category is being purchased from all sources like local market, modern market and online market. 0% 20% 40% 60% 80% 100% 10 25 10 5 5 15 15 20 20 15 15 0 10 15 20 Grocery Product Purchase Location Local Market Modern Market Online
  • 30. 21 Q.11 Thinking about the purchases done in last 3 months, can you tell us where all did you buy these from? Ans. Ghrap No. 3.11 In non-grocery products all locations are tapped by all 40 respondents. All the categories are showing high purchasing from Online. Men clothing is mostly purchased from Modern stores like supermarkets, malls and brand outlets. 0% 20% 40% 60% 80% 100% Men's Clothing Women's Clothing Kid's Clothing Footwear Accessories 10 5 5 10 10 20 10 10 10 12 10 25 25 20 18 Non-Grocery Product Purchase Location Local Markets Modern Markets Online
  • 31. 22 Q.12 Which channel is most preferred for purchasing Grocery products? Ans. Ghrap No. 3.12 With the help of this particular question we could make out that in a sample size of 40 there are maximum respondents who says that Online is their preferred way for purchasing products. Only in the case of Fresh-Dairy, Veggies respondents prefer going for local and modern markets. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 5 35 5 0 0 10 5 15 15 10 25 0 20 25 30 Online Modern Markets Local Markets
  • 32. 23 Q.13 Which channel is most preferred for purchasing Non-Grocery products? Ans. Ghrap No. 3.13 With the help of this particular question we could make out that in a sample size of 40 there are maximum respondents who says that Online is their preferred way for purchasing products. For accessories maximum respondents go for online shopping. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Men's Clothing Women's Clothing Kid's Clothing Footwear Accessories 5 5 5 5 10 10 10 15 5 25 25 25 20 35 Online Modern Market Local Market
  • 33. 24 Q.14 Can you tell me which of the following activities do you do online? Ans. Ghrap No. 3.14 Apart from shopping of products we got to know that there are many other services which are being used online. But some services like purchasing a book online and booking hotel is usually done offline, which is using sources other than online. 15 25 15 5 30 35 5 15 25 15 25 35 10 5 40 35 25 0 5 10 15 20 25 30 35 40 45 Pay utility bills Banking Book travel tickets Book movie tickets Book Hotels Purchase book Stram Online Content Book Cab Pay for mobile recharge NO YES
  • 34. 25 Q.15 Since how long Online Shopping has been done? Ans. Ghrap No. 3.15 In sample size of 40 it was found that 38% of respondents are using online shopping from last 2-3 years. Only 12% of respondents are using Online shopping since last year only. 12% 38% 25% 25% Using Since 1 Year 2-3 Years 3-4 Years More than 4 Years
  • 36. 27 Findings Inthebeginningwestudiedaboutaveragehousecountforthesamplesize40.There are six types of families. 3 member families are about 24%, 4 member families are about 26%, 5 member families are about 29%, 6 member families are 15% and 6&more member families are only 6% of total sample size. Insamplesizeof40wefoundthatthereareabout58members.Herethesamplesizeisconsideredasone familythereforetheno.workingmembersaremorethansamplesize.Inthese58workingmembersmajorly spousesarethere. Onlaterstageweanalyzedtheeducationandoccupationofall40respondents.All40weregraduatedand 15amongthemwereworking&restswerenotworking.Thisnon-workingcategoryincludesallhousewives. Thereareabout35respondentswhoownsmorethan9consumerdurablesandarealsograduatesothese respondentswillbeclassifiedA1asperSocioEconomicClassification. Remaining5respondentsareowning only7consumerdurablessotheyareclassifiedasA2asperSEC. Thereareabout40%ofsamplesizeusessmartphonetoaccessinternetand30%useslaptop/desktop/tablet, butrest30%usesbothofthesedevicestoaccessinternet. 75%ofsamplesizeusesWi-Fitoaccessinternetandrest25%isequallyacquiredbydongleand broadbandcabl We checked how frequently respondent buy Grocery Products. To simplify we divided Grocery products in 5 categories. The category like Fresh-dairy and veggies is purchased by respondents on daily basis. Grain, pulses, oil, ghee is purchased once in a month and once in a 2-3 months equally by sample size of 40. Only 5 respondents buy packaged food daily. 25 respondents’ buys homecare and personal care products once in a month and rest 15 respondents go for purchase in once a 2-3 month. Men’s clothing purchase is once a month only. Otherwise other category of products like Women’s clothing, Kid’s clothing, Footwear & accessories are purchased frequently as compared to Men’s clothing.
  • 37. 28 As per the study amount spent on grocery product is comparatively less than non-grocery products. The amount spent on Fresh-Dairy, Veggies is highest in grocery products. About 27.5% of grocery products are purchased from local markets, 42.5% of grocery is purchased from modern markets and rest 30% are buying online. In non-grocery products around 49% products are purchased online and rest from local and modern markets. Online is preferred purchase location for grocery products with about 50% of sample size and for non-grocery products 65% sample size prefers online. In sample size of 40 it was found that 38% of respondents are using online shopping from last 2-3 years. Only 12% of respondents are using Online shopping since last year only. Rest 50% is equally divided by 3-4year old users and more than 4year old users.
  • 39. 30 From the above study we can conclude few things.  This research shows that online shopping is having very bright future in India.  Perception towards online shopping is getting better in India.  With the use of internet, consumers can shop anywhere, anything and anytime with easy and safe payment options.  Consumers can do comparison shopping between products, as well as, online stores.  There are about 62.5 % families which have around 3 to 5 members in each family.  All 40 respondents were graduated and About 87.5% of sample size comes under A1 classification as per SEC and rest 12.5% comes under A2 classification as per SEC (Socio EconomicClassification).  The 40% of sample size using Smartphone to access internet.  45% of sample size purchases Grocery products once in a month, whereas 65% of sample size purchases non-grocery products once in a month.  Actual online grocery product purchase is done by 30% of total sample size whereas the online non-grocery product purchase is done by 49% of total sample size. Straight away there is 19% increase.  On the other hand 50% of total sample size prefers online grocery product shopping and 65% of total sample prefers online non-grocery shopping. Here also there is drastic difference between preference of grocery product and non-grocery product.  The overall conclusion could be that the online grocery product shopping is less preferred than online non-grocery product.  Consumers are going more towards online shopping of non-grocery products.
  • 41. 32 Recommendation  After studying entire research we see that there is huge gap between online purchase of grocery products and purchase of non-grocery products.  The concept of online grocery product shopping is emerging in India, so proper marketing strategies needed to apply.  As online shopping of non-grocery product has been there in India for almost long time, so they have built up the trust and faith in consumers mind.  In case of online grocery shopping consumer is missing that touch when he goes to buy some of grocery category item such as vegetables.  As online grocery shopping is slowly coming up, such ecommerce companies should look out for ideas to gain trust and faith of customer like online non-grocery products have created.  Such companies should make effective strategies to reach out to customers with the price tag of local vendors as some ecommerce companies are charging little extra than what local vendor or supermarket is offering for same grocery product.  Some of the things, which the consumers should take into considerations while online shopping, are:  Use a secure browser. The browser should comply with industry security standards, such as Secure Sockets Layer (SSL).  Consumers should shop with the known companies, as it is easy to set up a shop online under any name. If they are not familiar with a merchant they should ask for paper catalogue or brochure to get a better idea about the merchandise and services and should find about the company’s refund and return policies. Consumers should also search for the reviews of the company.  Read the privacy policy on the site of the companies before shopping as this helps to know what information is being collected and how it would be used.
  • 42. 33  Keep a print record of the transactions this would come handy in case of any fraud.  One should find out how the company secures the financial and personal information before paying the bills.  The personal information should be kept private like address, telephone numbers, email, etc. One should avoid using telephone numbers or date of birth for establishing a password instead should use a combination of numbers, letters and symbols.  Proper research should be done about countries shopping laws and merchant when shopping from other countries.
  • 44. 35 QUESTIONNAIRE Q.1 Could you please tell me that how many family members reside in this household? o 3 o 4 o 5 o 6 o 7 o 8 Q.2 Who all are working members among these? o Self o Parents o Spouse o Siblings o Sis-in-law/Bro-in-law Q.3 Can you please tell me about education? _____________________________________________________________________________ _____________________________________________________________________________ __________
  • 45. 36 Q.4 Can you tell me which all consumer durables you/your family owns? o Electric Connection o Ceiling Fan o LPG stove o Two Wheeler o Color Television o Refrigerator o Washing Machine o Personal Computer/Laptop o Car o Air Conditioner o Agri cultural Land Q.5 What all devices do you have at household to access internet? o Smartphone o Laptop/desktop/Tablet o Others______________________________________________________________________ Q.6 Could you tell me what type of internet connection do you have at your home? o Wi-Fi o Dongle o Broadband Cable
  • 46. 37 Q.7 How frequently does your household buy these categories? Daily Once a week Once in a 2- 3 week Once in a month Once in 2-3 month Once in a 6 month Grain, Pulses, Oil, Ghee Fresh- Dairy, Veggies Packaged Food Home care Personal Care Men Clothing Women Clothing Kid’s Clothing Footwear Accessori es
  • 47. 38 Q.8 Can you tell us for each category listed below, how much do you spend on an average? Amount (Rs.) Grain, Pulses, Oil, Ghee Fresh-Dairy, Veggies Packaged Food Home care Personal Care Men Clothing Women Clothing Kid’s Clothing Q.9 Thinking about the purchases, can you tell us where all did you buy these from? Local Markets Modern Market Online Grain, Pulses, Oil, Ghee Fresh-Dairy, Veggies Packaged Food Home care Personal Care Men Clothing Women Clothing
  • 48. 39 Q.10 Which channel is the most preferred channel for purchasing categories mentioned below? Local Markets Modern Market Online Grain, Pulses, Oil, Ghee Fresh-Dairy, Veggies Packaged Food Home care Personal Care Men Clothing Women Clothing Q.11 Can you please tell me which of the following activities are done using internet? Yes No Pay utility bills Banking Book travel tickets Book movie tickets Book Hotels Purchase book Stram Online Content Q.12 Since how long online shopping has been done? _____________________________________________________________________________ _____________________________________________________________________________ __________