A study on customer preference towards Online Grocery stores in Bengaluru.

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

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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

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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:

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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

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TABLE OF CONTENTS

CHAPTER NO PARTICULARS PAGE NO

Vii, Viii
LIST OF TABLES
1X, X
LIST OF CHARTS
X1
EXECUTIVE SUMMARY

1 INTRODUCTION 1-13
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.

2 THEORETICAL BACKGROUND OF THE TOPIC 14-21

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

3 REVIEW OF LITERATURE AND RESEARCH DESIGN 22-27

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

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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 28-68

Analysis And Interpretation of Data

5 FINDINGS, CONCLUSION AND SUGGESTIONS 69-72

5.1 Summary of findings
5.2 Suggestions and Recommendations
5.3 Conclusion

BIBLIOGRAPHY

ANNEXURE

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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

Table showing which item the respondents shop online.

4.8

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

Table showing how much the respondents spend monthly

on online groceries shopping (in Rs)
4.12

Table showing the maximum delivery fee the respondents

4.13

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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

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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
Chart showing which item the respondents shop online
4.8

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

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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

Chart showing why do the respondents think it is beneficial

4.22

Chart showing the respondents favorite online grocery

4.23

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shopping website

4.24 Chart showing according to the respondents which is the

easier way to make shopping

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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.

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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

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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.

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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

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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.

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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.

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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.

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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

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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”

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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

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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.

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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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

 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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

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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

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

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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

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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.

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“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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

“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.

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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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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 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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

No of respondents

>30 108

25-30 22

18-24 70

0 20 40 60 80 100120

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.

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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)

No of respondents

120 113

100 87
80

60

40

20

0 Male Female

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.

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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

StudentServiceBusinessHouse hold

14%
21%

19%

46%

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

250
200
200
150
100
No of
respondents
50
0
0
Yes No

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.

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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

No of respondents

140
120 117
100

75
80
60
40
20
0 8

HomeOfficeAny other

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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)?

1-2 Times/day3-4 Times/day 5-6Times/dayDaily

29%21%
15%

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

No of respondents

No0

Yes 200

0 50 100 150 200 250

Interpretation:

From the above chart it can be inferred that majority of the respondents go far online
purchasing. All 200 respondents are shop online.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.8, Chart showing which item the respondents shop online

No of respondents

Any other0

Food 36

Electronics 87

Books 23

Apparels 54

0 20 40 60 80 100

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.9, Chart showing the respondents have ever purchased groceries online
via internet or not.

No of respondents

No 56

Yes 144

0 20 40 60 80 100 120 140 160

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Table 4.10, Table showing from which website the respondents do purchases the
groceries.

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%

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.10, Chart showing from which website the respondents do purchases the
groceries.

Others 0

Naturebasket.com 25

Youmart.in 33
No of respondents

ZopNow.com 49

Bigbasket.com 93

0 20406080100

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Table 4.11, Table showing how often the respondents do their grocery shopping
online

Period No of Percentage
respondents
Weekly 76 38%

Monthly 28 14%

Only for special occasion 40 20%

I never do my grocery shopping 56 28%

online
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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.11, Chart showing how often the respondents do their grocery shopping
online

8076

70

60 56

50
40
40
28 Series1
30

20

10

0
Weekly Monthly Only for specialI never do my
occasiongrocery 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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.12, Chart showing how much the respondents spend monthly on online
groceries shopping (in Rs)

No of respondents

100 92
90
80
70
60 64
50
40
30
20 35
10
0
9

500-10001000-15001500-25003000& above

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.13, Chart shows the maximum delivery fee the respondents would able
to pay

No of respondents

Rs150& above 8

Rs100-150 27

Rs50-100 90

Rs0 75

0 20 40 60 80 100

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

No of respondents

120
105
100

80

60

40
34
26 28

20
7

0
Very likely Likely Neither likely Unlikely Very unlikely
nor unlikely

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Table 4.15, Table showing the maximum membership fee that the respondents
would be willing to pay.

Membership fee (In Rs) No of respondents Percentage

None 37 18%

1000 89 44%

1500 43 22%

2000 & above 31 16%

Total 200 100%

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

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.15, Chart showing the maximum membership fee that the respondents
would be willing to pay.

No of respondents

2000 & above 31

1500 43

1000 89

None 37

0 20 40 60 80 100

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.

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 A study on customer preference towards Online Grocery stores in Bengaluru.

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 98 85 17 0 0
variety

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

Saving time
150
114
100
65
50
21
0 0
0
1 2 3 4 5

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

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

Better prices
100
81
80
68
60
40
20
23 28
0
0

12345

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

Easy to order
2%
0% 1
28% 27% 2
3
4
5

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

Product variety
120
98
100 85
80
60
40
20
0 17
0 0

12345

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.17, Chart showing where do the respondents shop grocery items if not in
online

No of respondents

Supermarket 43

Sabzimandi 97

9
Ration shop

Local kirana stores 51

0 20 40 60 80 100 120

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.18, Chart showing When do the respondents feel the need to shop online.

When I need home

delivery
0%
When I want something
35% unique and special
40%
When I need to compare prices

11%
When I don’t have the
time to find things

any others

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.19, Chart showing what features in online shopping website attracts the
respondents.

No of respondents

Others0

Variety 102

Advertisement 30

Discounts offered 54

The design of a website 14

0 20 40 60 80 100 120

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

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.20, Chart showing the respondents issues regarding online shopping

No of respondents

140
117
120
100

80

60
38
32
40
20 13

0
No guarantee Too much Security issuePhysical
clutter examination

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

No of respondents

No No, 62

yes yes, 138

0 50 100 150

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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Chart 4.22, Chart showing why do the respondents think it is beneficial

No of respondents

Any other0

Avoid long queues 38

Saves Time 23

Discounts & offers 34

Variety at one place 73

Easy to order 32

0 20 40 60 80

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Table 4.23, Table showing the respondents favorite online grocery shopping
website

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%

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

Chart 4.23, Chart showing the respondents favorite online grocery shopping
website

100 89
90
80
70 58
60
50
40
27
30 19
20 No of respondents
7
10 0
0

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

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A study on customer preference towards Online Grocery stores in Bengaluru.

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

No of respondents

Offline shopping 58

Online shopping 142

0 50 100 150

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.

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A study on customer preference towards Online Grocery stores in Bengaluru.

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.

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 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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A study on customer preference towards Online Grocery stores in Bengaluru.

5.2- SUGGESTIONS AND RECOMMENDATIONS:

 Create awareness & manage home delivery services properly.

 Various schemes and festival offers, cash discounts on bulk purchase can be
provided to attract new customers.

 Different advertising medium should be adopted to bring awareness in

shoppers about the online grocery shopping store and its product.
 In order to increase the productivity of the site, the firm should offer special
discounts with respect to seasons like Diwali, Ganpati, Holi etc, also special
packages should be created as monthly ration.
 Instead of going the regular eCommerce way of Grocery shopping, the firm
should start up by bringing existing retailers online.
 For the purchase of the grocery item user can choose their nearby Kirana
Store from the listed stores along with a convenient time of the delivery.
 The local store would be informed about the order and it would be delivered to
the address at the time mentioned with the payment of cash only on delivery.
 Convenience and time saving are the main reason to shop groceries online.
Therefore Business to Consumers (B2C) sites should be designed in such a
way that consumers spend less time in finding information they are looking for
as delays in searching or loading a web page might turn the consumers to other
sites which have faster download and display times.

 The key to selling to a customer which cannot be seen is to get the customer to
trust the website with which they have electronic transactions.

 Most of the Indians still like to see the product before buying; efforts should
be made to change this mindset of the people by making them aware of the
benefits of online grocery shopping.

 Vendors should educate the customers about e-commerce like educating them
on safety tips like reading the item description, looking for a seller‟s feedback
score and asking questions, detecting spoof mails and informing them about
the new online crimes which happen regularly.

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A study on customer preference towards Online Grocery stores in Bengaluru.

5.3-CONCLUSION:

 The study is an attempt to measure customer‟s preferences towards online

grocery shopping in Bangalore. The customers are the main asset for any
organization, without attracting them no organization can be run well.
Customer preferences towards online grocery stores is affected by various
factors. This survey was meant to identify the customer preferences towards
online grocery store.

 From the above data analysis it can be conclude that consumer buys goods
from the online shopping website on the basis of factors like offers and
discounts, variety of product available, free home delivery, website user
friendliness and cash of delivery payment option.

 The hypothesis framed for the project Consumer Perception towards Online
Grocery Shopping was “Online grocery shopping stores are beneficial for the
consumer”.

 From the above data analysis it can be determined that most of the respondent
would agree to buy grocery online rather than shopping of grocery with the
traditional method.

 Out of the agreed respondent to buy online grocery, most of the respondent
would think that it would be beneficial to shop grocery online on the basis of
factors like easy to order, variety, discounts/ offers, saves time and avoid long
queues.

 With above analysis we can thus prove the hypothesis to be positive.

 The recommended business operation will not only beneficial for the
consumer but also to the firm, as it allows the firm to maintain its low
operating expenses and for the consumer

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A study on customer preference towards Online Grocery stores in Bengaluru.

BIBLIOGRAPHY

BOOKS:

Schiffman Leon.Gand Leslie Lazar Kanuk; Consumer Behavior; Pearson Education;

7th edition;2002,
Levy Michael;Retailing Management;Tata McGraw-Hill, New Delhi,5 th edition;2004,
Marketing Managemen by Philip Kotler, Kothari.C.R;Research Methodology;New
Age International(P) Ltd. New Delhi,2nd edition;2009

Websites:
 http://www.wikipedia.com
 http://www.researchindia.com
 http://www.slideshare.net/jas.bhatia/reliancefresh
 http://www.vccircle.com/500/news/grocery-e-tailing-start-ups-a-dime-a-
dozen-butinvestors-wary

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

 http://www.emeraldinsight.com/doi/abs/10.1108/09590550010306737

 http://www.emeraldinsight.com/doi/abs/10.1108/09590550210423681

 http://www.sciencedirect.com/science/article/pii/S026840120400091X

Magazines & Journal:

 Indian journal of marketing
 Retail Magazine by Abijit Ghosh
 Economic Times(Brand Equity)

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A study on customer preference towards Online Grocery stores in Bengaluru.

ANNEXURE

QUESTIONNAIRE
I, Ramesh d. student of IVth sem MBA, bearing Reg.No 131GCMA115 from RVIM,
is carrying out dissertation titled „„A STUDY ON CUSTOMER PREFERENCES
TOWARDS ONLINE GROCERY SHOPPING IN BANGALORE CITY”.
Therefore I request you to fill the fallowing questionnaire. The information provided
by you will be only used for the academic purpose and will be kept confidential.
1) Name:………………………………………………………………………………..

2) Gender:- Male □ Female □

3) Email-…………………………………………………………………………………

4) Age:-A). 18-24 □ B). 25-30□ C). 30 and above □

5) Occupation:- A). Student □ □
B). Service C). Business □ D). House

hold □
Q1. Do you use internet?

A). Yes □ B). No□

Q2. Where do you have access to the internet?

A). Home □ B). Office □ C). Any other

Q3. How many times per week do you go online (email, internet, facebook)?

A). 1-2 times □ B). 3-4 times □ C). 5-6 times □ D). Daily □
Q4. Have you ever purchased anything online?

A). Yes □ B). No □

Q5. Which item you shop online?

A). Apparels □ B). Electronics □ C). Food □ D).

Books □ E). Any other

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A study on customer preference towards Online Grocery stores in Bengaluru.

Q6. Have you ever purchased groceries online via internet?

R V Institute of Page
 A study on customer preference towards Online Grocery stores in Bengaluru.

A). Yes □ B). No □

Q7. If yes from which site you purchased

A). Bigbasket.com □ B). ZopNow.com □ C).Youmart.in □

D). Naturebasket.com□ E). Any other

Q8. How often do you do your grocery shopping online?

A). Weekly B). Only use for special occasion □

C). Monthly □ D). I never do my grocery shopping online □ .

Q9. How much do you spend monthly on online groceries shopping?(Rupees)

A). 500 – 1000 □ B). 1000 – 1500 □

C). 1500 – 2500 □ D). 3000 & above □
Q10. How likely would you be to buy groceries online and have them delivered
if…

Very Likely Neither Unlikely Very

Likely likely Unlikely
Nor
unlikely
Costs were slightly higher than
Regular grocery store prices
Costs were slightly lower than
Regular grocery store prices
Costs were same as a regular
Grocery store prices
There will be a service delivery
free Per order

Q11. What is the maximum delivery fee you would be able to pay?

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A study on customer preference towards Online Grocery stores in Bengaluru.

A). Rs0□ B). Rs50-100 □ C). Rs100-150 D). Rs150 or more □

Q12. How likely would you be to buy groceries online and have them delivered if
there were an annual membership fee but not
delivery charge?

A). Very likely □ B). Likely□ C). Neither likely nor unlikely□
D). Unlikely □ E). Very unlikely □
Q13. What is the maximum membership fee you would be willing to pay?

A). None □ B). 1000 □ C).1500□ D). 2000 or more □

Q14. How important are each of the following factors relative to your
consideration of
Purchasing groceries online instead og going to the store?
Very Somewhat Neither Somewhat Very
Import Important Important Unimportant Unimportant
ant nor
Unimportant
Saving time
Better prices
Easy to navigate
Product variety

Q15. Where do you shop for grocery items if not in online?

A). Local Kirana stores □ B). Ration Shop □

C). Sabzi Mandi □ D). Supermarkets □

Q16. When do you feel the need to shop online?

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A study on customer preference towards Online Grocery stores in Bengaluru.

A). When I need home delivery □ B). When I want something unique, special□
C). When I need to compare prices □ D). When I don‟t have time to buy □
E). Any other

Q17. What features in online shopping website attracts you?

A). The design of a website □ B). Discounts offered □

C). Variety□ D). Any other

Q18. What are your issues regarding online shopping?

A). No guarantee □ B). Too much clutter □ C). Security issue □

D). Physical examination □ E). Any other

Q19. While shopping what affects your satisfaction the most?

Feature Very Somewhat Not

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

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A study on customer preference towards Online Grocery stores in Bengaluru.

Tracking of items

Q20. Do you think buying grocery online is beneficial?

A). Yes □ B). No□

Q21. If yes, why do you think is beneficial?

A). Easy to order □ B). Variety at one place □ C). Discounts &

offers□
D). Saves Time □ E). Avoid long queues □ F). Any
other

Q22. Which is your favourite online grocery shopping website?

A). Bigbasket.co B). ZopNow.com □ C). Youmart.in□

D). Localkiranastore.com E). Naturebasket.com□ F). Any other

Q23. According to you which is the easier way to make shopping

A). Online shopping □ B). Offline shopping □

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