1. Did you shop online today? Online Grocery Shopping: Customer Motives, Concerns and Business Models By Mike Kempiak and Mark A. Fox Presented by Jessie Lin
6. Inconvenient delivery time and methods “3 out of every 10 consumers purchased dairy items.” “55 percent of e-grocery consumers would not purchase meats and/or produce online. ”
7. Limitation on sensory perception Delivery time has to be short Computers run slow on graphic displays Heavy capital on storage center ( -low brand identification) Failures Examples: e-grocers, notably Webvan, Streamline, Homegrocer and Shoplink Successful example: Amazon, Net grocer ,You name it Limitations on Business Models
8. http://www.youtube.com/watch?v=RkovXcbaRmI Keys to successful online grocery business MyWebGrocer, makes the following suggestions: Leverage your reputation and current marketing by including existing store name in the Web address; Prominently feature the online site in all advertising and in-store activities; Show pictures of all products being sold; Have a sign-in sheet right in the store so customers can leave their e-mail address; Contact the local media when launching a site; Contact the media again with "human interest" story ideas, providing the list of customers who are happy with the service; Develop partnerships with local corporations to offer online shopping from the office; Team with local Internet Service Providers (ISPs); and, Contact local daycare centers to target busy parents Conclusion
9. Kimpiak, M., & Fox, M. (2002). Online grocery shopping: consumer motives, concerns, and business models. First Monday , 8(12). Citation
Editor's Notes
Studies done in 2000 have shown that two times more consumers have experiences in online shopping than there were in 1995. At the same time, there were more online-only grocery companies who sell their goods exclusively through internet attempting to replace traditional supermarkets yet many of them eventually failed. The article analyzes the pros and cons of online shopping site’s business model as well as consumer’s motives, and concerns towards online shopping online as opposed traditional grocery shopping.
Changes in family structuctures (job, increased working hours, changing family structures, people are being impatient)Morganosky and Cude (2000) found that 73 percent of e-gryocery shoppers reported that convenience and saving time as the primary reasons that they use the Internet to buy groceries.In a study of 239 respondents, Aylott and Mitchell (1998) found two major stressors associated with traditional grocery shopping, namely crowding and queuing Morganosky and Cude (2000) reported that over 50 percent of e-grocery shoppers earned over US$50,000 per year, and 80 pecent of e-grocery households comprised two or more adults.disabilities related to age and health are another prominent market for e-grocery services (Heikkila et al., 1999).disabled and elderly were the second most often mentioned target market. The prominence of this market is also supported by Morganosky and Cude (2000), who find that 14.8 percent of e-grocery shoppers cite physical constraints as the primary reason that they use the Internet to buy groceries.
not being able to find their favorite products. Consumer who did not shop online cited two major reasons for this: (1) wanting to see and touch the foods they purchase; and, (2) inconvenient delivery times and methods. The most popular food products are dry goods, representing 65 percent of food products purchased. One-third of respondents purchased frozen food or meat. Three out of every ten consumers purchased dairy items. Less than 25 percent have purchased produce items.
Limit on sensory perception of the product (consumer can’t, can’t touch)for consumers to be convinced that delivery of products to their front door is convenient, the delivery time must be relatively short. Technology must also improve so that graphic displays do not require a long time to download.Requires a large amount of capital to keep the storage center operating the whole time: These concerns are warranted in light of the failure of many pureplay e-grocers, notably Webvan, Streamline, Homegrocer and Shoplink (Tanskanen, Yrjola and Holmstrom, 2002).
Traditional grocery retailers that have ventured online have been more successful than pure plays.My Web Grocer provide web service for 164 supermarkets in 20 states
