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A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 1
A STUDY ON ...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 2
DECLARATION...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 3
CERTIFICATE...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 4
ACKNOWLEDGE...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 5
TABLE OF CO...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 6
3.6 Data Co...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 7
LIST OF TAB...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 8
would able ...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 9
LIST OF CHA...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 10
annual mem...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 11
shopping w...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 12
EXECUTIVE ...
A study on customer preference towards Online Grocery stores in Bengaluru.
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CHAPTER 1
...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Internet w...
A study on customer preference towards Online Grocery stores in Bengaluru.
R V Institute of Management. Page 15
Although m...
A study on customer preference towards Online Grocery stores in Bengaluru.
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items deli...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Business-t...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Mobile Com...
A study on customer preference towards Online Grocery stores in Bengaluru.
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1.4 FACTOR...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Logistics:...
A study on customer preference towards Online Grocery stores in Bengaluru.
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model. The...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Avendus re...
A study on customer preference towards Online Grocery stores in Bengaluru.
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1.6 ONLINE...
A study on customer preference towards Online Grocery stores in Bengaluru.
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 It is al...
A study on customer preference towards Online Grocery stores in Bengaluru.
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1.9 HOW DO...
A study on customer preference towards Online Grocery stores in Bengaluru.
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CHAPTER 2
...
A study on customer preference towards Online Grocery stores in Bengaluru.
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In additio...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Online gro...
A study on customer preference towards Online Grocery stores in Bengaluru.
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BigBasket....
A study on customer preference towards Online Grocery stores in Bengaluru.
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2.2.2 ZOPN...
A study on customer preference towards Online Grocery stores in Bengaluru.
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2.2.3 YOUM...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Policies &...
A study on customer preference towards Online Grocery stores in Bengaluru.
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addition, ...
A study on customer preference towards Online Grocery stores in Bengaluru.
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CHAPTER 3
...
A study on customer preference towards Online Grocery stores in Bengaluru.
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“These bus...
A study on customer preference towards Online Grocery stores in Bengaluru.
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“Create a ...
A study on customer preference towards Online Grocery stores in Bengaluru.
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E-commerce...
A study on customer preference towards Online Grocery stores in Bengaluru.
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3.4 SCOPE ...
A study on customer preference towards Online Grocery stores in Bengaluru.
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 Paramete...
A study on customer preference towards Online Grocery stores in Bengaluru.
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CHAPTER 4
...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.2,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.3,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.4,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.5,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.6,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.7,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.8,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.8,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.9,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.9,...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.10...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.10...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.11...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.11...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.12...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.12...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.13...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.13...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.14...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.14...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.15...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.15...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.16...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.16...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.16...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.16...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.17...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.17...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.18...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.18...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.19...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.19...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.20...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.20...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.21...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.22...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.22...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.23...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Chart 4.23...
A study on customer preference towards Online Grocery stores in Bengaluru.
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Table 4.24...
A study on customer preference towards Online Grocery stores in Bengaluru.
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CHAPTER 5
...
A study on customer preference towards Online Grocery stores in Bengaluru.
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 46% of C...
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.
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A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.

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a study on customer preferences towards online grocery shopping in Bangalore city, this project is related to online shopping and study the customer attitude towards online grocery shopping.

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A STUDY ON CUSTOMER PREFERENCES TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY.

  1. 1. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 1 A STUDY ON CUSTOMER PREFERENCE TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE Dissertation submitted in partial fulfilment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Of BANGALORE UNIVERSITY By RAMESH DHARMANNA Reg No..: 131GCMA115 Under the guidance of MS. RASHMI SHETTY Assistant Professor Rashtreeya Sikshana Samithi Trust RV INSTITUTE OF MANAGEMENT CA-17, 36th Cross, 26th Main, 4th T Block, Jayanagar, Bangalore-560041 2014-15
  2. 2. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 2 DECLARATION I, hereby declare that this Dissertation titled “A STUDY ON CUSTOMER PREFERENCE TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY” is the result of the project work carried out by me under the guidance of Ms. Rashmi Shetty, Assistant Professor, RVIM in partial fulfillment for the award of Master‟s Degree in Business Administration by Bangalore University. I also declare that this project is the outcome of my own efforts and that it has not been submitted to any other university or Institute for award of any other degree or Diploma or Certificate. Date: RAMESH DHARMANN Place:Bangalore Reg No: 131GCMA115
  3. 3. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 3 CERTIFICATE OF ORIGINALITY This is to certify that dissertation titled “A STUDY ON CUSTOMER PREFERENCE TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY” is an original work of Mr. Ramesh Dharmanna, bearing University Register Number 131GCMA115 and is being submitted in partial fulfilment for the award of the Master‟s Degree in Business Administration of Bangalore University. The report has not been submitted earlier either to this University/ Institution for the fulfilment of the requirement of a course of study. Ms. Rashmi Shetty Dr. T.V.Raju Guide Director Date: Date:
  4. 4. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 4 ACKNOWLEDGEMENT The successful completion of any task would be incomplete without mentioning the people who made it possible and whose constant guidance secured as success. I express my deep gratitude to our beloved Director Dr. T V Raju, RVIM, Bangalore, and for his support in the successful completion of the project and for giving an opportunity to complete this study successfully. It is with humble sense and gratitude with heartfelt appreciation to my guide Ms. Rashmi Shetty, Asst. Professor, RVIM, whose estimable aid, keen surveillance, support, continued inspiration, valuable guidance and meticulous supervision throughout project and to bring this project to a successful completion. I would also like to thank all the faculties and staffs for providing every form of assistance and guidance whenever required. I am grateful to my parents, friends and well-wishers who have encouraged and supported me in completion of the project. Date: RAMESH DHARMANNA Place: Bangalore Reg. No.: 131GCMA115
  5. 5. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 5 TABLE OF CONTENTS CHAPTER NO PARTICULARS PAGE NO LIST OF TABLES Vii, Viii LIST OF CHARTS 1X, X EXECUTIVE SUMMARY X1 1 INTRODUCTION 1.1 Introduction to online grocery shopping industry 1.2 Current scenario of online grocery shopping industry 1.3 Models of e-Commerce 1.4 Factors of online Grocery Shopping 1.5 Online Shopping in India 1.6 Online Grocery Shopping in India 1.7 Advantages of online grocery shopping 1.8 Disadvantages of online grocery shopping 1.9 How does online grocery shopping works. 1-13 2 THEORETICAL BACKGROUND OF THE TOPIC 2.1 Theoretical background of the Study 2.2 Competitors in online grocery shopping stores in Bangalore 2.2.1 Bigbasket.com 2.2.2 ZopNow.com 2.2.3 Youmart.in 2.2.4 NatureBasket.com 14-21 3 REVIEW OF LITERATURE AND RESEARCH DESIGN 3.1 Literature review 3.2 Statement of the problem 3.3 Objectives of the study 3.4 Scope of the Study 3.5 Research Methodology 22-27
  6. 6. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 6 3.6 Data Collection 3.7 Sample Design 3.8 Plan of Analysis 3.9 Limitations of the study 3.10 Chapter Scheme 4 DATA ANALYSIS AND INTERPRETATION Analysis And Interpretation of Data 28-68 5 FINDINGS, CONCLUSION AND SUGGESTIONS 5.1 Summary of findings 5.2 Suggestions and Recommendations 5.3 Conclusion 69-72 BIBLIOGRAPHY ANNEXURE
  7. 7. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 7 LIST OF TABLES TABLE NO DESCRIPTION PAGE NO 4.1 Table showing the Age of the respondents 4.2 Table showing the Gender of the Respondents (Gender ratio) 4.3 Table showing the occupation of the respondents 4.4 Table showing whether the respondents use the internet or not. 4.5 Table showing where the respondents have access to the internet for online shopping. 4.6 Table showing how many times per week do respondents go online(email, internet, facebook) 4.7 Table showing whether the respondents have ever purchased anything online or not 4.8 Table showing which item the respondents shop online. 4.9 Table showing the respondents have ever purchased groceries online via internet or not. 4.10 Table showing from which website the respondents do purchases the groceries. 4.11 Table showing how often the respondents do their grocery shopping online 4.12 Table showing how much the respondents spend monthly on online groceries shopping (in Rs) 4.13 Table showing the maximum delivery fee the respondents
  8. 8. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 8 would able to pay. 4.14 Table showing how likely the respondents would buy groceries online and have them delivered, if there were an annual membership fee but not delivery charge 4.15 Table showing the maximum membership fee that the respondents would be willing to pay. 4.16 Table shows how important are each of the following factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store? 4.17 Table showing where do the respondents shop grocery items if not in online 4.18 Table showing when do the respondents feel the need to shop online. 4.19 Table showing the features in online shopping website attracts the respondents 4.20 Table showing the respondents issues regarding online shopping 4.21 Table showing do the respondents think buying groceries online is beneficial 4.22 Table showing why do the respondents think why it is beneficial 4.23 Table showing the respondents favourite online grocery shopping website 4.24 Table showing according to the respondents which is the easier way to make shopping
  9. 9. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 9 LIST OF CHARTS CHART NO DESCRIPTION PAGE NO 4.1 Chart showing the Age of the respondents 4.2 Chart showing the Gender of the Respondents (Gender ratio) 4.3 Chart showing the Occupation level of the respondents 4.4 Chart showing whether the respondents use the internet or not. 4.5 Chart showing where the respondents have access to the internet 4.6 Chart showing how many times per week do respondents go online(email, internet, facebook) 4.7 Chart showing whether the respondents have ever purchased anything online or not 4.8 Chart showing which item the respondents shop online 4.9 Chart showing the respondents have ever purchased groceries online via internet or not. 4.10 Chart showing from which website the respondents do purchases the groceries. 4.11 Chart showing how often the respondents do their grocery shopping online 4.12 Chart showing how much the respondents spend monthly on online groceries shopping (in Rs) 4.13 Chart shows the maximum delivery fee the respondents would able to pay 4.14 Chart shows how likely the respondents would buy groceries online and have them delivered, if there were an
  10. 10. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 10 annual membership fee but not delivery charge 4.15 Chart showing the maximum membership fee that the respondents would be willing to pay. 4.16.1 Chart shows how saving time is important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store 4.16.2 Chart shows how price are important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store 4.16.3 Chart shows how easy to order feature is important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store 4.16.4 Chart shows how product variety is important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store 4.17 Chart showing where do the respondents shop grocery items if not in online 4.18 Chart showing When do the respondents feel the need to shop online. 4.19 Chart showing what features in online shopping website attracts the respondents. 4.20 Chart showing the respondents issues regarding online shopping 4.21 Chart showing do the respondents think buying groceries online is beneficial 4.22 Chart showing why do the respondents think it is beneficial 4.23 Chart showing the respondents favorite online grocery
  11. 11. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 11 shopping website 4.24 Chart showing according to the respondents which is the easier way to make shopping
  12. 12. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 12 EXECUTIVE SUMMARY Internet and Information technology have made tremendous contributions for business transformation witnessed nowadays all over the world. This has given birth to E commerce which encompasses several pre purchase and post purchase activities leading to exchange of products or service or information over electronic systems such as the internet and the other Telecommunication networks. Analysing the competitive advantage of E-Commerce it is observed that E-Commerce enables simpler, faster and efficient business transactions. For developing country like India, E-Commerce offer considerable opportunity for growth. E-commerce leads to a boon for the current economic downturn. As India‟s e- commerce market is worth about Rs 60,000 crores in 2013. About 80% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge, online grocery shopping etc.). Online retailing comprises about 15%. India has close to 10 million online shoppers and is growing at an estimated 40-45% per annum. The rapid growth of e-commerce in India is being driven by greater customer choice and improved convenience. The project will first study the attitude of customers towards online shopping, also determining the factors which influence the consumer to purchase goods and service. The second half of the project will depict the attributes of online shopping influencing the purchase decision by the respondent. It will also determine the issues regarding the online shopping. The third part of the project determines the purchase decision with respect to grocery. It will determine the place preference of grocery shopping with respect to price, quality, variety, proximity and offers/ discounts. The project will also recommend the business operational plan which works with contracting dealership with the local kirana stores.
  13. 13. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 13 CHAPTER 1 1.1 INTRODUCTION TO THE ONLINE GROCERY SHOPPING INDUSTRY Growing interest by consumers to point and click their way through nearly all aspects of daily life has fueled the Internet economy to develop services and sell products online even in areas that were once the sole domain of traditional businesses, such as grocery stores and pharmacies. Businesses that sell consumer products online have been coined as “etailers” and as “e-grocers” in the case of online grocery retailers. Some of the reasons why an increasing number of consumers buy groceries online are common to all Internet purchases, including better prices, larger selection, convenience, and time savings. Home delivery of items purchased online is appealing to those for whom going out to shop is difficult for various reasons, such as physical disability, the need to care for small children, the lack of adequate or convenient transportation, and/or a busy lifestyle. Buying groceries and other products online unchains consumers from physically driving to and shopping in traditional stores. In a study by McKinsey and Company, 84% of consumers who order groceries online do it as a substitute for frequent regular trips to a grocery store, rather than substituting for infrequent trips to stock up on limited items or for special occasions. Hence, the industry could obtain the mass critical to success. The value proposition of e-grocers is to become a single-source solution for the busy consumer today. E-grocers provide information as well as products and services. E-grocers‟ scheduling requirements and the desire to consolidate purchasing activities to a single trip are two factors affecting the consumers‟ desire to purchase groceries online. Other factors negatively influencing consumers‟ decisions to purchase groceries or other goods online include shipping costs, credit card security, the need or want for immediate delivery of products, and the social aspects of the shopping experience. 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
  14. 14. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 14 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 behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain E- consumers behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context. 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.
  15. 15. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 15 Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace. Along with the development of E-retailing, researchers continue to explain E-consumers behavior from different perspectives. Many of their studies have posited new emergent factors or assumptions which are based on the traditional models of consumer behavior, and then examine their validity in the Internet context. 1.2 CURRENT SCENARIO OF ONLINE GROCERY SHOPPING INDUSTRY The evolution of online grocery stores is still in its infancy in India. However, purchasing grocery online is getting as popular as purchasing electronic gadgets online. Analysts and researchers claim that huge sales of mobile devices like smartphones and tablets is behind the booming online market. Nowadays, there is no element of surprise in finding people ordering all they want to possess online. Online grocery stores sell grocery of various brands to customers. They sell groceries at very competitive rates and consumers have a second thought when they are buying grocery from a local store. The user interface of an online grocery website is designed in a user-friendly way allowing easy access to products being purchased online. Sufficient discounts and online coupons are offered to attract consumers who are looking to save some money. However, the fact is that physical Grocery stores should be ready to face more competition from online grocery stores in the near future. The only way local grocery stores can sustain in the market in future is by turning online. Thus, a physical grocery store can use the reputation & goodwill already earned from customers to their advantage. The need for physical grocery stores turning online is inevitable and irreversible. The main reason behind businesses turning online is due to the fact that people are getting busier than ever before. For these kind of customers, comfort means grocery
  16. 16. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 16 items delivered on a weekly or monthly basis as per their needs at their door-steps. They can even automate the list of items to be purchased from online grocery stores. I do not think local stores should blame online stores for decrease in the volume of their business and revenue. Instead, they should introduce specific plans for utilizing the immense potential of online media & will have to introduce new marketing tactics that will help them grow in the online marketplace. If e-mails and instant messaging services can bring postal services to a standstill, then we can also expect that online grocery stores will replace physical grocery stores in the future. However, it is still a distant dream for people who cannot afford to buy a mobile device with Internet access. The boom in online grocery market is forcing brands to collaborate with online retailers for finding ways to make it easy for consumers to buy grocery online. As far as the current scenario is concerned, grocery stores should focus on getting more & more business via online methods. However, this does not mean that they would have to shut down the physical grocery store. The majority of revenue of Grocery store owners should come via online methods. Online grocery stores have paved the way for other local grocery stores to try latest in shopping trends. Many of online grocery stores offers customers with free home delivery, coupons, discounts and easy payment methods. No doubt, consumers will find online grocery shopping as a more convenient way of shopping instead of going to a physical grocery store. 1.3 MODELS OF E-COMMERCE: Business-to-Business (B2B): B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. About 80% of e- commerce is of this type, and most experts predict that B2B ecommerce will continue to grow faster than the B2C segment. Eg: indiamart.com, eindiabusiness.com, tradeindia.com etc.
  17. 17. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 17 Business-to-consumer (B2C): Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e-commerce. Its origins can be traced to online retailing (or e-tailing). Thus, the more common B2C business models are the online retailing companies such as flipkart.com Amazon.com, snapdeal.com etc. Business-to-Government (B2G): Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: first, the public sector assumes a pilot/leading role in establishing e-commerce; and second, it is assumed that the public sector has the greatest need for making its procurement system more effective. Web-based purchasing policies increase the transparency of the procurement process (and reduce the risk of irregularities). To date, however, the size of the B2G ecommerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped. Consumer-to-Consumer (C2C): Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets. Online auction site eBay, Yahoo! Auctions are a couple of examples of C2C websites.
  18. 18. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 18 Mobile Commerce in India: Mobile is growing in India with more than 810 million subscribers across the country. The advancement in terms of adoption of smart phones with 3G enabled services is happening at a rapid pace. This of course has opened up the gates to mobile advertising, mobile application development and mobile commerce in India. India is top performing mobile advertising region in the whole of Asia. The growth in mobile advertising globally is tremendous with ads served on a year- on-year growth of139%. With respect to some number crunching, more than 128 billion ads were served in 2013, compared with 52 billion in 2011. In India, Mobile Commerce is still in the development phase as the use of mobile phones for carrying out transactions is very limited. However, the development is taking place at a nice speed and in the coming years, Mobile Commerce is most likely to make its presence feel as companies and businesses have started understanding the benefits of Mobile Commerce. Some of the companies have even incorporated this technology. Airtel, ICICI, Reliance are some of the companies/businesses that are using this technology as their users are allowed to make limited purchases from their phones. For now, the users are mainly allowed to pay phone bills, utility bills, book movie tickets, book travel tickets with their cell phones. However, more services will be introduced in coming years. Security is one of the main concerns of Mobile Commerce as it‟s very important to offer secure transactions and this is the reason why Mobile Commerce is still in the development phase in India. For now, users are mainly allowed to do Mobile Banking i.e. to access the bank account with a cell phone in order to pay the utility bills. With the current rate of development, users will be soon allowed to purchase products, advertise, to take part in auctions and pay bills with the help of a cell phone, while they are on the move.
  19. 19. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 19 1.4 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 29% 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 (26%). 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
  20. 20. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 20 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. 1.5 ONLINE SHOPPING IN INDIA: The Indian economy is slated to grow by upward of 7% 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 12% 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 65% 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 12% 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 1.4 billion by 2015. Of these about 29 million are estimated to be active mobile internet users. More importantly, 22% users indicated intent to buy products through their mobile phones as against the current 5% 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 31 days, free product deliveries and the industry dynamics changing “cash on delivery”
  21. 21. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 21 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. Currently only about 12 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 155 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$50-100 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 10-16 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
  22. 22. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 22 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$24 million in January of this year. Despite all of this, it‟s been a very impressive story so far. The poster child of the Indian ecommerce industry is Flipkart.com, a 4 year old venture which modeled itself after Amazon.com and is already commanding a valuation of US$ 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 810 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 weight. India has more than 3,411 running e-commerce centers, 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) startups 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.
  23. 23. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 23 1.6 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 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. 1.7 ADVANTAGES OF ONLINE GROCERY SHOPPING:  There are many advantages of purchasing grocery online shopping as opposed to shopping from a traditional grocery store:  The primary benefit of online grocery shopping is convenience. By ordering online, one can quickly search for the products the customer 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 grocery shopping during the lunch break at work.
  24. 24. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 24  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.  Customers can shop anytime they want, at their own convenience, 24 hours a day, 7 days a week.  Customers can automate their grocery deliveries, so that frequently purchased grocery items are shipped to them on a regular basis.  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. 1.8 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.
  25. 25. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 25 1.9 HOW DOES ONLINE GROCERY SHOPPING 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 user name, which would allow information to be stored. This can also help create "suggested" carts of food items they commonly purchase.
  26. 26. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 26 CHAPTER 2 2.1 THEORETICAL BACKGROUND OF THE STUDY A grocery store is a retail store that primarily sells food. A grocer is a bulk seller of food. Grocery stores often offer non-perishable food, with some also having fresh produce, butchers, delis, and bakeries. Large grocery stores that stock significant amounts of non-food products, such as clothing and household items, are called supermarkets. Some large supermarkets also include a pharmacy and an electronics section. In the United States, Canada, and United Kingdom, supermarkets and convenience stores are sometimes described as grocery businesses, or simply grocers. Small grocery stores that mainly sell fruits and vegetables are known as produce markets or greengrocers and small grocery stores that predominantly sell prepared food, such as candy and snacks, are known as convenience stores or delicatessens. Some groceries specialize in the foods of a certain nationality or culture, such as Italian, Polish, oriental or Middle-Eastern. These stores are known as ethnic markets and may also serve as gathering places for immigrants. In many cases, the wide range of products carried by larger supermarkets has reduc ed the need for such specialty stores. The variety and availability of food is no longer restricted by the diversity of locally grown food or the limitations of the local growing season. 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.
  27. 27. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 27 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 different from many other products, such as music and books that are commonly purchased online. Many grocery products are perishable and therefore time-sensitive in terms of their delivery needs. In addition, groceries are a replacement product, i.e., the same basket of products is more-or-less purchased on a regular basis. Finally, groceries are high-touch items, meaning that consumers like to inspect the quality of items they are purchasing. Five years ago online grocery sales were only $85 million however, this growing market had attracted an number of "pure-plays" - companies that focused exclusively on selling through the Internet, and attempted to replace traditional bricks-and-mortar supermarkets. Most of these pure-plays failed spectacularly. Today, traditional bricks- and-mortars stores are increasingly entering the online market in an attempt to leverage both brand awareness and create distribution efficiencies. Online security and privacy are also of concern to consumers. In particular, security issues generally revolve around the transfer of personal and financial information (for example, addresses, telephone numbers, credit card numbers, etc.) over the Internet. Another privacy concern relates to the use of online consumer demographic and taste- related data. Online stores gather this information and can use it to target costumers or sell to marketing firms for marketing analysis.
  28. 28. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 28 Online grocery services meet a number of consumer needs including providing products for niche markets or helping the time starved consumer shop for the mundane weekly groceries. By delivering products to consumers' homes, the homebound aged and handicapped can participate in the shopping experience. Even though there has been a great decline in the number of pure-play online stores, there appears to be a solid market for shopping online. The major business model that is working today requires the support of the established bricks-and-mortar supermarkets. This model is effective as it creates distribution efficiencies and leverages reputation, which is an important consideration for consumers in light of the perishable nature of many grocery products. 2.2 COMPETITORS: 2.2.1 BIGBASKET.COM What is BigBasket.com Big Basket is India‟s largest online food and grocery store, with over 10,000 products and over 1000 brands. Big Basket sells products in categories such as fresh fruits and vegetables, grocery and staples, meats, personal care, and home and kitchen products. BigBasket operates in four cities including Bangalore, Mumbai, Hyderabad and Pune.
  29. 29. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 29 BigBasket.com (Innovative Retail Concepts Private Limited) is India‟s largest online food and grocery store. With over 10,000 products and over a 1000 brands in our catalogue you will find everything you are looking for. Right from fresh Fruits and Vegetables, Rice and Dals, Spices and Seasonings to Packaged products, Beverages, Personal care products, Meats we have it all. Choose from a wide range of options in every category, exclusively handpicked to help you find the best quality available at the lowest prices. Select a time slot for delivery and your order will be delivered right to your doorstep, anywhere in Bangalore, Mumbai, Hyderabad, Pune, Chennai & Delhi. You can pay online using your debit / credit card or by cash / Sodexho on delivery. We guarantee on time delivery, and the best quality! Why should I use BigBasket.com? Bigbasket.com allows you to walk away from the drudgery of grocery shopping and welcome an easy relaxed way of browsing and shopping for groceries. Discover new products and shop for all your food and grocery needs from the comfort of your home or office. No more getting stuck in traffic jams, paying for parking, standing in long queues and carrying heavy bags – get everything you need, when you need, right at your doorstep. Food shopping online is now easy as every product on your monthly shopping list, is now available online at BigBasket.com, India‟s best online grocery store.
  30. 30. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 30 2.2.2 ZOPNOW.COM Zopnow.com, an online retail store exclusively aims to catergrocery and FMCG need of people launched its service in Bangalore. Zopnow with punch line “Be Lazy, Buy Easy” plans to deliver grocery items at consumer‟s doorstep in less than 3 hours or at a predefined time specified by the customer. However, currently zopnow‟s is offering 1501 products to some selected areas of south Bangalore. Zop now is founded by serial entrepreneur B.K Birlaand Mukesh Singh, erstwhile CTO, Makemytrip. According to company website, it wants to build a customer centric online store that will leverage the hybrid model of online, call center, mobile application and physical touch. Zopnow claims to deliver great customer experience by providing customers, a convenient way to shop and in the process cut down the time at the checkout counter, traffic and parking. At present Zopnow offers cash on delivery (COD) option and are in the process of adding card, debit card, Sodexho and Ticket Restaurant vouchers, however Sodexho and Ticket Restaurant vouchers would be applicable only for food items. It offers free shipment for minimum order value of INR 500 and above, however shipping cost of INR 30 is added to all shipment below INR 500
  31. 31. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 31 2.2.3 YOUMART.IN YouMart is a brand of Ujjivan Enterprises Pvt Ltd. and was formed on 13th December 2012. YouMart is a strong initiative in the Online Supermarket space and embarked on a journey to make it the most preferred Online Grocery Store in India. Presently we operate in Bangalore, and will expand the operations to other metros in India. Our product portfolio includes everything our customer needs, from Groceries and Staples, fresh Vegetables and Fruits, Personal care products, Baby care products, Cleaning items to Stationeries and other Home needs. YouMart is a strong initiative in the Online Supermarket space and continues to thrive hard to make it the most preferred Online Grocery Store in India. Today we serve only in Bangalore but will soon move to other cities in India. We keep everything our customer needs from groceries and staples, fresh vegetables and fruits, personal care products, baby care products, cleaning items to stationeries and other home needs. We provide all easy payment options such as cash and card on delivery, sodexo vouchers, debit card and credit card online payment through secured and trusted payment gateway. Quality guaranteed - Quality in product and service is paramount for YouMart. Vegetables and fruits are handpicked for you and we guarantee quality and on-time delivery every time. YouFarm is the in house division of YouMart and we carefully procure and pack the best quality pulses, dals, rice, vegetables and fruits at regular prices. Working with a four-pronged approach:  Innovation  Respect for Individuals  Customer satisfaction  Striving for excellence
  32. 32. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 32 Policies & Principles:  Open Door Policy - Managers' doors are open to employees at all levels.  Sundown Rule - Answering employee, customer, and supplier questions on the same day the questions are received.  Customer satisfaction - Capturing suggestions and ideas from the sales floor and delivery front line.  Striving for excellence - Making eye contact, greeting, and offering help to customers to whom we serve.  Servant Leadership - Leaders are in service to their team. 2.2.3 NATUREBASKET.COM Godrej Nature‟s Basket is the retail venture of Godrej Group and is today India‟s foremost retail destination for fine foods from across the world. Started in 2005 as a single fresh food store, we have today morphed into a 32-store chain of premium gourmet stores strategically located at high street locations in Mumbai, Delhi/NCR, Pune, Hyderabad and Bangalore. With the growing palate preference of the Indian consumers, we are ready to embrace sophisticated and exotic tastes from around the world. We‟re travelling more than ever before, and as we take a bigger place on the world stage, we want to explore everything it has to offer. So we bring you the very best in service, quality and of course, international cuisine selection- a huge variety of delicious cheeses of all kinds from France and Italy, fresh and spicy ingredients from Thailand, amazing handcrafted ham and salami from Europe, oils and vinegars from the Mediterranean, most exotic and fresh organic produce and a cellar that boasts of the world‟s best collection of wine & beer. In
  33. 33. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 33 addition, we are powered by a team of noted food experts who search for the best and newest food products from around the globe. To make your journey through this gourmet destination even more mouth-watering, our uniquely knowledgeable and passionate staff will answer any questions you have, and can help you put together a gift hamper or an expertly selected cheese or meat platter for your special occasion. The Gourmet retail chain boasts of stocking the best international and domestic wines, cold cuts, meats, cheese, organic foods and a large variety of pastas, noodles, beverages, exotic and rare ingredients, meals, sauces, preserves and packaged food from around the world. Every item in the assortment is handpicked from the very best that Europe, Australia, Asia and the US have to offer. It caters to the refined needs of up-market urban consumers for irresistibly authentic world food and ingredients Services provided by Naturebasket.com  Home delivery for online and phone orders.  Customised gifts and treats for all special occasions & festivals  Gift vouchers  Exotic meat and cheese platters  In-store food consultants for advice on food tasting & pairing, wine tasting and appreciation  Delicious recipes from various cuisines available on naturesbasket.co.in
  34. 34. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 34 CHAPTER 3 3.1 REVIEW OF LITERATURE "India is among the fastest-growing markets and has been identified as one of the significant potential markets for the company," Muralikrishnan B., country manager at eBay's India explains that Indian consumers toward buying high margin products such as clothes and shoes as is the trend among eBay shoppers in the West rather than electronic gadgets and books, which are the most popular choices now but command lower profit margins and are less frequent purchases. He depicted that India's nascent e-commerce market, which till recently was largely limited to people buying train, flight and movie tickets, is in the middle of a surge as a younger, tech-savvy middle class increasingly takes to shopping online in a country seeing rapid growth in Internet usage. Consulting firm Techno park predicts a $70-billion annual market by 2020, up from $600 million now, which is just 0.05% of global online shopping. EBay itself estimates India's online shopping market in 2012 will grow close to 100%. “E-commerce: A boon for the current economic downturn” First Data Corporation and ICICI Merchant Services, has laid down some facts that ecommerce market in India had clocked close to Rs 55,000 cores by the end of 2014. Even though there are less than 10 million internet users who are actually engaging in ecommerce activities, there are about 150 million internet users in India or around 75 million households that are ready for e-commerce. With entry and operational costs being comparatively low than the other countries like US, the second half of 2011 and the beginning of the current calendar have seen the launch of a good number of new e-commerce sites spanning across a variety of businesses – women‟s fashion, men‟s fashion, shoes, followed by accessories, groceries, sports, toys, home furnishings, jewellery, automotive, bicycles, electronics and electrical equipment etc.
  35. 35. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 35 “These businesses are difficult to turn into profitable ventures due to the low margins and the logistics costs involved.” Gaurav Saraf, director of Epiphany Ventures says that, the concept of online grocery shopping faces the problem of turning their business into profitable ventures as the concept is new in the market which leads to low margin along with low margin high cost is involved when it comes to logistics. In addition to these problems the perishable items such as fruits & vegetables have a short shelf life, if these items are not delivered before the expiry of their shelf life it would could cause wastage and also add up the cost. From the above comment a conclusion is arrived that these business ventures have a very thin margin when it comes to business operations. “Connecting the local kirana stores with the buyers while storing inventories on the Cloud” Vijay Singh, CEO & MD of Aaramshop.com says that in order to reduce the cost to their business operation they applied the concept of cloud computing, where it connects the local kirana shops with the buyers. It enables the business to reduce the inventory cost as all the inventories are handled by the local vendor. Predicting online grocery buying intention: a comparison of the theory of reasoned action and the theory of planned behaviour. Torben Hansen, Jan Møller Jensen, Hans Stubbe Solgaard This paper tests the ability of two consumer theories the theory of reasoned action and the theory of planned behaviour in predicting consumer online grocery buying intention. In addition, a comparison of the two theories is conducted. Data were collected from two web-based surveys of Danish (n=1222) and Swedish (n=1038) consumers using self-administered questionnaires. These results suggest that the theory of planned behavior (with the inclusion of a path from subjective norm to attitude) provides the best fit to the data and explains the highest proportion of variation in online grocery buying intention.
  36. 36. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 36 “Create a work-life balance” Vijay Singh, CEO & MD of Aaramshop.com states that the concept of online grocery shopping creates the work-life balance in urban areas where the urban couples are busy in their work culture and cannot give time towards their daily life needs. “It is a difficult venture and these challenges make investors more cautious while evaluating such initiatives” Singhal of SAIF Partners, explains that the it is difficult for the investor to invest in these type of business where the market is extremely fragmented. Such a venture can only survive on repeat purchases and that‟s what one needs to target. If a company knows what it needs to stock, how much it needs to stock and where it needs to deliver, the business will become simpler to manage and run. The firm needs to find a strong value proposition and target market to survive the cut- throat competition The solution to the above problem stated can be that in order to survive in the market the business should target the satisfied consumer to create repeat purchases. Also inventory management should be applied to these organizations it will enable them to what it need to stock, how much it needs to stock and where it needs to deliver, this will allow to operates its business operation smoothly. Key drivers for success for e-commerce Reduction in operational cost as the entire business can be moved online, the need for physical stores has become obsolete. Less infrastructural investment and associated labour costs drives up the profit margin. It is far easier and quicker to compare prices of goods online, equipping the customer with the information to decide the right price or terms for themselves. With services like COD, customers can trust the process of going online and purchasing. Market penetration also becomes far more achievable with e-commerce; it is possible for a merchant in Mumbai to extend his reach to north-eastern cities or even rural villages that are now connected by the online network.
  37. 37. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 37 E-commerce facilitates shopping anytime, anywhere and for almost anything desired. Busy consumers prefer this to the restrictions of when a mall/shop is open and the need to physically travel to a shop. Online business takes shopping a step further by taking itself to the customer creating conveniences of shopping anywhere and at anytime. In India, with the increasing propensity of social media, businesses have now begun to engage their customers on social networking portals such as Facebook. These are likely to be rapidly developing marketing channels for the future. 3.2 STATEMENT OF THE PROBLEM: Indian organized retailing is under transition today, bringing a lot of changes in format of retailing. In this regard measuring customer satisfaction in organized „Reliance Fresh‟ outlets in Bangalore, preferences and experiences will be of use to shape the retail out lets and their offerings. The changing attitude of consumers led them to step forward from unorganized Kirana stores to the organized retailing formats. 3.3 OBJECTIVES 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.
  38. 38. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 38 3.4 SCOPE OF THE STUDY:  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 the whether grocery online shopping is beneficial for the user.  To analyse which factors influence the user to buy online grocery. 3.5 RESEARCH DESIGN AND METHODOLOGY: 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 Bangalore, India. 2. Secondary data Secondary data consists of information that already exists and that was collected in the past for some other purposes. 3.6 DATA COLLECTION TOOL USED:  Questionnair: 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. 3.7 SAMPLE DESIGN:  Size of Sample: The sample size selected for the research is 200 in the area of Bengaluru.
  39. 39. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 39  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. o And the female respondent who have an online shopping experience. 3.8 PLAN OF ANALYSIS: The data will be tabulated. Simple Percentages technique will be used for calculation to analyze the data and represented through graphs and charts. 3.9 LIMITATIONS OF THE STUDY:  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. 3.10 CHAPTER SCHEME - Chapter 1 : Introduction - Chapter 2 : Profile of the Industry - Chapter 3 : Design of the dissertation - Chapter 4 : Data analysis and Interpretation - Chapter 5 : Summary of Findings, Conclusion and suggestion Chapter 6: Annexure  Questionnaire  Bibliography.
  40. 40. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 40 CHAPTER 4 DATA ANALYSIS AND INTERPRETATION Table 4.1, Table showing the Age of the respondents Age Group No of respondents Percentage 18-24 70 35% 25-30 22 11% >30 108 54% Total 200 100% Analysis:  54% of the respondents are of the age more than 30 years.  35% of the respondents are of the age group of 18 years and 24 years.  11% of the respondents are of the age group of 25 years and 30 years. Chart 4.1, Chart showing the Age of the respondents Interpretation: The above chart we can infer that most of respondents belong to age of above 30 years. And few of the respondents belong to the age group of 18– 24 years. The respondents who belongs to the age group of above 30 years. 70 22 108 0 20 40 60 80 100 120 18-24 25-30 >30 No of respondents
  41. 41. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 41 Table 4.2, Table showing the Gender of the Respondents (Gender ratio) Gender No of respondents Percentage Male 87 44% Female 113 56% Total 200 100% Analysis:  From the above table we can analyze that 45% respondents are male  56% of respondents are female. Chart 4.2, Chart showing the Gender of the Respondents (Gender ratio) Interpretation: From the above figure it can be infered that majority of the respondents are female and few of them are male. This is because most of the grocery shopping is done by the females. Even male respondents also actively doing online shopping. 87 113 0 20 40 60 80 100 120 Male Female No of respondents
  42. 42. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 42 Table 4.3, Table showing the occupation of the respondents Occupation No of the respondents Percentage Student 42 21% Service 93 46% Business 38 19% House hold 27 14% Total 200 100% Analysis:  From the above table we can analyse that 46% of the respondents are in service sector.  21% of the respondents are students.  19% of the respondents are business holders.  14% of the respondents are households. Chart 4.3, Chart showing the Occupation level of the respondents Interpretation: From the above chart it can be inferred that majority of the respondents are from service sector and majority of the students respondents also doing online shopping. 21% 46% 19% 14% Student Service Business House hold
  43. 43. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 43 Table 4.4,Table showing whether the respondents use the internet or not. Attributes No of respondents Percentage Yes 200 100% No 0 0% TOTAL 200 100% Analysis:  From the above table we can analyse that 100% of the respondents use internet. Today it became common that every one has accessing to the internet Chart 4.4, Chart showing whether the respondents use the internet or not. Interpretation: The above chart shows all the respondents use internet who are educated which shows that all the respondents have the highest degree of buying grocery online since they have access to internet. 200 0 0 50 100 150 200 250 Yes No No of respondents
  44. 44. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 44 Table 4.5, Table showing where the respondents have access to the internet Attributes No of respondents Percentage Home 117 58% Office 75 38% Any other 8 4% Total 200 100% Analysis:  From the above table we can analyse that 58% of the respondents have access to internet at home  38% of respondents have access to the internet at office.  8% of the respondents have access to internet at college. Chart 4.5, Chart showing where the respondents have access to the internet Interpretation: From the above chart we can infer that majority of the respondents have access to the internet at home, and most of the respondents who are working they are accessing to the internet from office, few of the respondents have access to the internet at college. 117 75 8 Home Office Any other 0 20 40 60 80 100 120 140 No of respondents
  45. 45. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 45 Table 4.6, Table showing how many times per week do respondents go online(email, internet, facebook) Attributes No of respondents Percentage 1-2 Times/day 42 21% 3-4 Times/day 70 35% 5-6Times/day 31 15% Daily 57 29% Total 200 100% Analysis:  35% of the respondents said that they go online 3-4 times per day in a week.  29% of the respondents said that they go online daily.  21% of the respondents said that they go online 1-2 times per day in a week  15% of the respondents said that they go online 5-6 times per day in a week Chart 4.6, Chart showing how many times per week do respondents go online(email, internet, facebook)? Interpretation: From the above chart it can be inferred that majority of the respondents go online 3-4 times in a day, and few of the respondents go online 5-6 times in a day. And most of the respondents uses facebook, email, internet on daily basis. 21% 35%15% 29% 1-2 Times/day 3-4 Times/day 5-6Times/day Daily
  46. 46. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 46 Table 4.7, Table showing whether the respondents have ever purchased anything online or not Attributes No of respondents Percentage Yes 200 100% No 00 0% Total 200 100% Analysis:  100% of the respondents said that they have purchased products by online,  All 100% of the respondents actively shopping through online. Chart 4.7, Chart showing whether the respondents have ever purchased anything online or not Interpretation: From the above chart it can be inferred that majority of the respondents go far online purchasing. All 200 respondents are shop online. 200 0 0 50 100 150 200 250 Yes No No of respondents
  47. 47. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 47 Table 4.8, Table showing which item the respondents shop online. Attributes No of respondents Percentage Apparels 54 27% Books 23 11% Electronics 87 44% Food 36 18% Any other 0 0% Total 200 100% Analysis:  44% of the respondents said that they shop electronics items online.  27% of the respondents said that they shop apparels online.  18% of the respondents said that they shop food online.  11% of the respondents said that they shop books online.
  48. 48. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 48 Chart 4.8, Chart showing which item the respondents shop online Interpretation: The above chart depicts that electronics items has the highest number of transaction in online shopping, and another important thing is most of the respondents buying the food from online sellers. Apparels is the second most item sold in the online shopping, which are more preferred by the female respondent, along with food items etc. 54 23 87 36 0 0 20 40 60 80 100 Apparels Books Electronics Food Any other No of respondents
  49. 49. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 49 Table 4.9, Table showing the respondents have ever purchased groceries online via internet or not. Attributes No of respondents Percentage Yes 144 72% No 56 28% Total 200 100% Analysis:  The above table shows that 72% of the respondents have purchased groceries online.  56% of the respondents never do their grocery shopping online.
  50. 50. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 50 Chart 4.9, Chart showing the respondents have ever purchased groceries online via internet or not. Interpretation: From the above chart we can infer that majority of the respondents have purchased groceries online. In 200 respondents 144 respondents have purchased groceries online, and few of the respondents never do their grocery shopping online. 144 56 0 20 40 60 80 100 120 140 160 Yes No No of respondents
  51. 51. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 51 Table 4.10, Table showing from which website the respondents do purchases the groceries. Analysis:  46% of the respondents have purchases the groceries from Bigbasket.com  24% of the respondents purchases the groceries from ZopNow.com  17% of the respondents purchases the groceries from Youmart.com  13% of the respondents purchases the groceries from Naturebasket.com. Websites No of respondents Percentage Bigbasket.com 93 46% ZopNow.com 49 24% Youmart.in 33 17% Naturebasket.com 25 13% Others 00 0% Total 200 100%
  52. 52. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 52 Chart 4.10, Chart showing from which website the respondents do purchases the groceries. Interpretation: From the above chart we can infer that majority of the respondents purchases groceries from bigbasket.com, where most of the respondents purchase the groceries from Zopnow, youmart.com and few of them purchases from naturebasket.com. 93 49 33 25 0 Bigbasket.com ZopNow.com Youmart.in Naturebasket.com Others 0 20 40 60 80 100 No of respondents
  53. 53. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 53 Table 4.11, Table showing how often the respondents do their grocery shopping online Period No of respondents Percentage Weekly 76 38% Monthly 28 14% Only for special occasion 40 20% I never do my grocery shopping online 56 28% Total 200 100% Analysis:  38% of the respondent said that they shop groceries online weekly.  28% of the respondent said that they do not shop groceries online.  20% of the respondent said that they shop groceries online only in special occasion.  14% of the respondent said that they shop groceries online monthly.
  54. 54. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 54 Chart 4.11, Chart showing how often the respondents do their grocery shopping online Interpretation: From the above chart we can infer that majority of the respondents shop groceries weekly, out of 200 respondents 76 respondents does grocery shopping online and few of the respondents shop groceries online in a month. 76 28 40 56 0 10 20 30 40 50 60 70 80 Weekly Monthly Only for special occasion I never do my grocery shopping online Series1
  55. 55. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 55 Table 4.12, Table showing how much the respondents spend monthly on online groceries shopping (in Rs) Particular‟s No of respondents Percentage 500-1000 92 46% 1000-1500 64 32% 1500-2500 35 17% 3000& above 09 5% Total 200 100% Analysis:  46% of the respondents said that they spend monthly Rs 500-1000 on online grocery shopping.  32% of the respondents said that they spend monthly Rs 1000-1500 on online grocery shopping.  17% of the respondents said that they spend monthly Rs 1500-2500 on online grocery shopping.  5% of the respondents said that they spend monthly more than 3000 Rs on online grocery shopping.
  56. 56. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 56 Chart 4.12, Chart showing how much the respondents spend monthly on online groceries shopping (in Rs) Interpretation: The money spend in online shopping is ranging from INR 500-1000, which indicates the users are willing to pay more price when there is premium quality products such as electronics, branded apparels, good quality food etc. And majority of the respondents spent more than 500 to 1000 Rs on online grocery shopping and few of the respondents spent more than 3000 Rs on online grocery shopping. 92 64 35 9 0 10 20 30 40 50 60 70 80 90 100 500-1000 1000-1500 1500-2500 3000& above No of respondents
  57. 57. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 57 Table 4.13, Table showing the maximum delivery fee the respondents would able to pay. Particular‟s No of respondents Percentage Rs0 75 37% Rs50-100 90 45% Rs100-150 27 14% Rs150& above 08 4% Total 200 100% Analysis:  45% of the respondents said that they are ready to pay Rs 50-100 delivery charge.  37% of the respondents said that they don‟t pay any delivery charges.  14% of the respondents said that they ready to pay 100 to 150 Rs delivery charge.  4% of the respondents said that they are ready to pay more than 150 Rs of delivery charge
  58. 58. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 58 Chart 4.13, Chart shows the maximum delivery fee the respondents would able to pay Interpretation: From the above chart we can infer that majority of the respondent ready to pay Rs 100-150 delivery charges, it shows that out of 200 respondents 90 respondents ready to pay 100 and below 150 And 37% of the respondents don‟t want to pay any delivery charges, and out of 200 respondents only 8 respondents ready to pay more than 150 Rs delivery charges. 75 90 27 8 Rs0 Rs50-100 Rs100-150 Rs150& above 0 20 40 60 80 100 No of respondents
  59. 59. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 59 Table 4.14, Table showing how likely the respondents would buy groceries online and have them delivered, if there were an annual membership fee but not delivery charge? Attributes No of respondents Percentage Very likely 26 13% Likely 34 17% Neither likely nor unlikely 28 14% Unlikely 105 52% Very unlikely 7 4% Total 200 100% Analysis:  52% of the respondents said that they don‟t want to pay annual membership fee.  17% of the respondents said that they are likely agree to pay annual membership fee.  14% of the respondents said that they are neither likely nor unlikely agree to pay annual membership fee.  13% of the respondents said that they are very likely agree to pay annual membership fee.  4% of the respondents said that they are completely disagree to pay annual membership fee.
  60. 60. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 60 Chart 4.14, Chart shows how likely the respondents would buy groceries online and have them delivered, if there were an annual membership fee but not delivery charge Interpretation: From the above chart it can be inferred that majority of the respondents are not agree to pay annual membership fee, and only 13% of the total respondents very likely agree to pay annual membership fee. 26 34 28 105 7 Very likely Likely Neither likely nor unlikely Unlikely Very unlikely 0 20 40 60 80 100 120 No of respondents
  61. 61. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 61 Table 4.15, Table showing the maximum membership fee that the respondents would be willing to pay. Analysis:  44% of the respondents said that they are ready to pay 1000Rs annual membership fee  22% of the respondents said that they are ready to pay 1500Rs annual membership fee  18% of the respondents said that they are not ready to pay any annual membership fee  16% of the respondents said that they are ready to pay above 2000Rs annual membership fee Membership fee (In Rs) No of respondents Percentage None 37 18% 1000 89 44% 1500 43 22% 2000 & above 31 16% Total 200 100%
  62. 62. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 62 Chart 4.15, Chart showing the maximum membership fee that the respondents would be willing to pay. Interpretation: The above chart depicts that the majority of the respondent agree to pay Rs 1000 for annual membership fee, and few of the respondents agree to pay more than 2000 Rs for annual membership fee for online grocery shopping. 37 89 43 31 None 1000 1500 2000 & above 0 20 40 60 80 100 No of respondents
  63. 63. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 63 Table 4.16, Table shows how important are each of the following factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store? 1. Very important 2. Somewhat important 3. Neither important nor unimportant 4. Somewhat unimportant 5. Very unimportant Attributes 1 2 3 4 5 Saving time 114 65 21 0 0 Better prices 68 81 23 28 0 Easy to order 54 86 57 3 0 Product variety 98 85 17 0 0 Analysis:  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 is very easy to order any product, 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.
  64. 64. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 64 Chart 4.16.1, Chart shows how saving time is important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store Interpretation: 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 57% of the respondent saving time is very important and of the 11% of the thinking saving time is not so important 114 65 21 0 0 0 50 100 150 1 2 3 4 5 Saving time
  65. 65. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 65 Chart 4.16.2, Chart shows how price are important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store Interpretation: The above chart depicts that majority of the respondents said that price are likely important for shopping online, out of 200 respondents 81 respondents said better prices are likely important. Chart 4.16.3, Chart shows how easy to order feature is important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store Interpretation: From the above it can be inferred that 28% of the respondents said that easy to order feature neither important nor important, and majority that is 43% of the respondents said easy to order feature is likely important. 68 81 23 28 0 0 20 40 60 80 100 1 2 3 4 5 Better prices 27% 43% 28% 2% 0% Easy to order 1 2 3 4 5
  66. 66. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 66 Chart 4.16.4, Chart shows how product variety is important factors relative to the respondent for the consideration of Purchasing groceries online instead of going to the store Interpretation:  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. 98 respondents are said that having product variety is very important. 98 85 17 0 0 0 20 40 60 80 100 120 1 2 3 4 5 Product variety
  67. 67. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 67 Table 4.17, Table showing where do the respondents shop grocery items if not in online Attributes No of respondents Percentage Local kirana stores 51 25% Ration shop 9 4% Sabzimandi 97 49% Supermarket 43 22% Total 200 100% Analysis:  49% of the respondents said that they do their grocery shopping in subzimandi  25% of the respondents said that they do their grocery shopping in local kirana stores.  22% of the respondents said that they do their grocery shopping in super markets.  4% of the respondents said that they do their grocery shopping in ration shops.
  68. 68. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 68 Chart 4.17, Chart showing where do the respondents shop grocery items if not in online Interpretation:  From the above graph we can determine that user choose subzimandi and local kirana stores for shopping grocery items as they are proximate to their home.  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.  User prefer supermarket to shop grocery items as they offer more discounts & offers compared to the other shopping centres. 51 9 97 43 Local kirana stores Ration shop Sabzimandi Supermarket 0 20 40 60 80 100 120 No of respondents
  69. 69. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 69 Table 4.18, Table showing when do the respondents feel the need to shop online. Attributes No of respondents Percentage When I need home delivery 71 35% When I want something unique and special 29 14% When I need to compare prices 21 11% When I don‟t have the time to find things 79 40% any others 00 0% Total 200 100% Analysis:  45% of the respondents said that they do their online grocery shopping when they do not have time to find things in different market.  35% of the respondents said that they do their online grocery shopping when they need home delivery.  14% of the respondents said that they do their online grocery shopping when they want something unique.  11% of the respondents said that they do their online grocery shopping when they need to compare prices.
  70. 70. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 70 Chart 4.18, Chart showing When do the respondents feel the need to shop online. Interpretation: 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. 35% 14%11% 40% 0% 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 any others
  71. 71. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 71 Table 4.19, Table showing the features in online shopping website attracts the respondents Attributes No of respondents Percentage The design of a website 14 7% Discounts offered 54 27% Advertisement 30 15% Variety 102 51% Others 00 0% Total 200 100% Analysis:  51% of the respondents said that variety feature attracted them to shop grocery through online.  27% of the respondent said that discount offered feature attracted them to shop grocery by online.  15% of the respondents said that advertisement attract them to shop online.  7% of the respondents said that design of the website attract them to shop groceries online.
  72. 72. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 72 Chart 4.19, Chart showing what features in online shopping website attracts the respondents. Interpretation:  From the above diagram we can determine that people prefer online shopping when discounts offers are offered to them.  The other factor that motivates the majority of respondents 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 14 54 30 102 0 The design of a website Discounts offered Advertisement Variety Others 0 20 40 60 80 100 120 No of respondents
  73. 73. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 73 Table 4.20, Table showing the respondents issues regarding online shopping Attributes No of respondents Percentage No guarantee 38 19% Too much clutter 13 6% Security issue 117 59% Physical examination 32 16% Total 200 100% Analysis:  59% of the respondents are having security issue in online grocery shopping  19% of the respondents are having no guarantee issue in online grocery shopping  16% of the respondents are having physical examination issues in online grocery shopping  6% of the respondents are having clutter of the website issue in online grocery shopping.
  74. 74. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 74 Chart 4.20, Chart showing the respondents issues regarding online shopping Interpretation: The above data determines the user to shop online is the security issue, which consists of issues like phishing, hacking of accounts etc. The other factor which demotivates the respondents is physical examination that is the tangibility of the product is the important issue when it comes to online shopping, and few of the respondents have clutter of the website. 38 13 117 32 No guarantee Too much clutter Security issue Physical examination 0 20 40 60 80 100 120 140 No of respondents
  75. 75. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 75 Table 4.21, Table showing do the respondents think buying groceries online is beneficial Attributes No of respondents Percentage yes 138 69% No 62 31% Total 200 100% Analysis:  69% of the respondents said that buying groceries online is beneficial  31% of the respondents said that buying groceries online is not beneficial. Chart 4.21 Chart showing do the respondents think buying groceries online is beneficial Interpretation: The above chart depicts that most of the respondent think that buying grocery is beneficial, 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. yes, 138 No, 62 yes No 0 50 100 150 No of respondents
  76. 76. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 76 Table 4.22, Table showing why do the respondents think why it is beneficial Attributes No of respondents Percentage Easy to order 32 16% Variety at one place 73 36% Discounts & offers 34 17% Saves Time 23 12% Avoid long queues 38 19% Any other 00 0% Total 200 100% Analysis:  36% of the respondent said online grocery shopping is beneficial because of the variety at one place.  19% of the respondent said online grocery shopping is beneficial because of the its avoids long queues.  17% of the respondent said online grocery shopping is beneficial because of discounts and offers provided by online grocery stores.  16% of the respondent said online grocery shopping is beneficial because online grocery shopping is easy to order.
  77. 77. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 77 Chart 4.22, Chart showing why do the respondents think it is beneficial Interpretation: The above chart 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. 32 73 34 23 38 0 Easy to order Variety at one place Discounts & offers Saves Time Avoid long queues Any other 0 20 40 60 80 No of respondents
  78. 78. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 78 Table 4.23, Table showing the respondents favorite online grocery shopping website Analysis:  44% of the respondents said that bigbasket.com is favorite website for online grocery shopping.  29% of the respondents said that zopnow.com is favorite website for online grocery shopping  13% of the respondents said that youmart.in is favorite website for online grocery shopping.  10% of the respondents said that naturebasket.com is favorite website for online grocery shopping.  4% of the respondents said that local kiranastore.com is favorite website for online grocery shopping. Attributes No of respondents Percentage Bigbasket.com 89 44% ZopNow.com 58 29% Youmart.in 27 13% Localkiranastore.com 07 4% Naturebasket.com 19 10% Any other 00 0% Total 200 100%
  79. 79. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 79 Chart 4.23, Chart showing the respondents favorite online grocery shopping website Interpretation: The above chart depicts that majority of the respondents favorite website is Bigbaket.cm, out of 200 respondents 89 respondents purchases groceries from Bigbasket.com, and most of the respondents purchases from Zpnow.com, but out of 200 only 7 respondents purchases from the naturebasket.com 89 58 27 7 19 0 0 10 20 30 40 50 60 70 80 90 100 No of respondents
  80. 80. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 80 Table 4.24, Table showing according to the respondents which is the easier way to make shopping Attributes No of respondents Percentage Online shopping 142 71% Offline shopping 58 29% Total 200 100% Analysis:  71% of the respondents are said that buying groceries online is beneficial than buying in stores.  29% of the respondents are said buying groceries online is not beneficial. Chart 4.24, Chart showing according to the respondents which is the easier way to make shopping Interpretation: From the above chart we can infer that majority of the respondents are thinking that buying groceries online is beneficial than buying in regular stores or in offline. Out 200 respondents 142 respondents feeling that shopping groceries through online is easier. 142 58 Online shopping Offline shopping 0 50 100 150 No of respondents
  81. 81. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 81 CHAPTER 5 5.1 FINDIGS: In the survey, interviews and study conducted above, I came across many factors that are as fallows.  54% of the shoppers who does online shopping are the age above 30 years, and 35% of the youth between the ages of 18 to 24 years.  The number of Female respondents was more that is 56% as compared to the male respondents that was only 44%. It shows that most of the grocery shopping is done by the females.  The survey indicates that majority of the was from the service sector that is 46% of the total respondents.  The survey indicates that 100% of the respondents uses internet for email, shopping, facebook etc.  From the survey it was came to know that most of the respondents have access to the internet from home that is 58% as compare to having access to the internet at office that is only 38% of the total respondents.  35% of the respondents using internet 3 to 4 times in a day.  From the data collected above it can observed that 100% of the respondents does online shopping.  The survey indicates that majority of the respondents buys electronics items by online as compare to apparel.  72% of the respondents does online grocery shopping and 28% of the respondents never do online grocery shopping.  The study reveals that 38% of the respondents does online grocery shopping weekly.  Majority of the customers that is 46% of the respondents spend rs 500-1000 on online grocery shopping.  Majority of customers prefer subzimandi and local kirana stores for grocery shopping.
  82. 82. A study on customer preference towards Online Grocery stores in Bengaluru. R V Institute of Management. Page 82  46% of Customer prefers to purchase products from Bigbasket.com, that indicates customers are attracted towards Bigbasket.com. It indicates it has a good market potential in future.  Most customers prefer shopping by online due to the wide assortment of products available.  Giving offers and discounts have more effect on consumer buying decisions.  Certain parameters which motivates the user to shop online are: online.  The data also determines the factors which will be beneficial for the consumer to shop grocery online which are variety at one shop, saves times and avoid long queues.  Security, physical examination is the important issues in the online shopping which determines the tangibility of the product.  From the above data collection we can determine most of respondent agree to buy grocery online if the option is given.  Maximum number of the respondents are shopping groceries in online outlets it shows that future trend and growth of online retail sector is very high.

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