IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 20, Issue 2. Ver. V (February. 2018), PP 18-31 www.iosrjournals.org DOI: 10.9790/487X-2002051831 www.iosrjournals.org 18 | Page Determinant Attributes of Online Grocery Shopping In India - An Empirical Analysis Dr. Ch. Jayasankara Prasad 1 , Yadaganti Raghu 2 1 (Department of Business Administration, Krishna university, India) 2 (Department of Business Administration, Krishna university, India) Corresponding Author: Dr. Ch. Jayasankara Prasad Abstract: The purpose of these paper is to identify the attributes of online grocery shopping which has been the motivational factors of customers buying groceries online. To meet the objectives of the study, semi structured formal interviews were conducted with online grocery consumers, who are aware and purchase grocery products from online stores in and around Bangalore City in Karnataka. Convenience sampling techniques was used to collect primary data from online grocery consumers who were happened to be the employees, who are aware, use and purchase grocery products from online grocery stores, working in seven software companies by administering a structured non-disguised questionnaire to online grocery consumers. The data analysis and results were based on 183 usable questionnaires duly filled up by the online retail grocery consumers who actively participated in marketing survey. Descriptive statistical tools (Mean, Standard Deviations and cross tabulations), exploratory factor analysis and inferential statistical techniques such as Chi-square analysis, Correlation, multiple Regression were applied to test the formulated hypotheses from conceptual framework. The seven determinants are convenience, security, trust, service support, flexible transaction, personalized attention, price promotions are having significant influence on consumers online grocery buying behavior. Keywords: Attribute, Bangalore, Convenience sampling, Online grocery products, Shopping behaviour --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 20-01-2018 Date of acceptance: 19-02-2018 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction Over the past few years, India‟s grocery shopping pattern is shifting from traditional shopping to online shopping 1 with the advent of internet and e-commerce which led to the phenomenon called―online grocery shopping behaviour 2 . Electronic grocery ( e- grocery) is the process of ordering groceries from home in an electronic way and either having them ordered at ones house or collecting them at a store or at a pick up point (Anna, 2016). As a result, internet shopping has been widely accepted as a way of purchasing grocery products. It has become a more popular means in the Internet world (Bourlakis et al., 2008). It also provides consumer more information and choices to compare product and price, more choice, convenience, easier to find anything online (Butler and Peppard, 1998). Online shopping has been shown to provide more satisfaction to modern consumers seeking convenience and speed (Yu and Wu, 2007.) The online grocery market constitutes a niche market subject to overall food and grocery market in India. Nevertheless, online grocery shopping is a relatively new environment that is rapidly gaining popularity in the country owing to rise in e-commerce industry, growing urbanization, changing lifestyle of the consumers and tech-savvy young generation who prefers to buy grocery products through online. Given the phenomenal growth in e-commerce market, increasing consumer awareness, rising disposable income and emergence of various technological advancements, the online grocery stores are rapidly replacing physical stores across India. Yet, online food and grocery penetration is less than 1 per cent. While the market on the online platform is still in its nascent stage, India's online grocery market is estimated to grow at a compounded annual growth rate of 62 per cent during 2016-2022 (IBEF, 2015; 6Wresearch, 2015). Further, the online sales are expected to reach around 2 per cent of the overall grocery market by 2020, creating a potential market size of around US$ 10 1 Online shopping is a mode of purchasing products and services by ordering them via the Internet-based stores, which provides consumers with an easy access to products and price information, and facilitates product comparison (Chu, Arce-Urriza, Cebollada-Calvo, & Chintagunta, 2010). 2 Online grocery shopping refers to ordering grocery products via the Internet and the subsequent delivery of the ordered goods at home (Burke, 1998). It is also defined as a number of experiences including information search, web site browsing/navigation, ordering, payment, customer service interactions, delivery, post- purchase problem resolution, and satisfaction with every purchase (Ha/Stoel 2009).
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IOSR Journal of Business and Management (IOSR-JBM)
TABLE 6 Differences in the respondents‟ online grocery buying behaviour with respect to their Age Online grocery shopping behavior Sum of Squares df Mean Square F Sig.
Between Groups 12.493 3 4.164 2.742 .045
Within Groups 271.835 179 1.519
Total 284.328 182
Note: p<0.001
TABLE 7 LSD Test for Respondents' Age Group Dependent Variable: Online grocery Buying Behavior
Respondents' age Mean Difference
(I-J)
Std. Error Sig.
(I) age (J) age
25-35 35-45 .342 .242 .159
45-55 .741* .300 .014
35-45 25-35 .342 .242 .159
45-55 .725* .294 .015
45-55 25-35 .741* .300 .014
35-45 .725* .294 .015
* The mean difference is significant at the 0.05 level.
To test the significant mean differences in the levels of online grocery buying behaviour between male
and female respondents, independent-samples t-test was used. Results shown in Table 8 reveal that the P- value
(0.05) of the Levene‟s Test for gender status was less than 0.05 which implies that the variance is
heterogeneous. Therefore, t-test for equal variance not assumed was applied. As a rule of thumb, 2-tailed
significance (0.083) that is greater than 0.05 suggests that the variance is not statistically significant. According
to the equal variance not assumed, the variances in the mean of 2.104 and 1.900 with the standard deviation of
0.895 and 0. 786 for both male and female on online grocery buying behaviour was insignificant. Thus, it can be
said that both male and female have insignificant mean differences in their online grocery shopping behaviour.
Thus, H10b was proved to be accepted. The findings implied that male and female have equal and similar online
grocery buying behavior
TABLE 8 Differences in the Respondents‟ Online grocery shopping Behaviour with respect to their gender Levene's Test for
Equality of Variances t-test for Equality of Means
F
Sig. t df Sig.
(2-tailed)
Mean
Difference
Std. Error
Difference
Equal
variances
assumed
1.190 0.05 1.034 181 0.083 0.204 0.095
Equal
variances not
assumed
1.012 130.9 0.058 0.204 0.086
To examine the significant mean differences in online grocery buying behaviour between married and
unmarried respondents, independent-samples t-test was applied. Findings shown in Table 9 reveal that the P-
value (0.011) of the Levene‟s Test for marital status was less than 0.05 which implies that the variance is
heterogeneous. Therefore, t-test for equal variance not assumed was applied. As a rule of thumb, 2-tailed
significance (0.054) that is greater than 0.05 suggests that the variance is not statistically significant. According
to the equal variance not assumed, the variances in the mean of 2.286 and 2.121 with the standard deviation of
0.883 and 0. 792 for both married and un-married on purchase intention was insignificant. Thus, it can be said
that both married and un-married have insignificant mean differences in their intention to purchase online
grocery products. Thus, H10c was proved to be accepted. The findings implied that married and unmarried
customers have equal and similar online grocery buying behaviour.
TABLE 9 Differences in the Respondents‟ Online Grocery Buying Behaviour with respect to their Marital
Status Levene's Test for
Equality of Variances
t-test for Equality of Means
F Sig. t df Sig.
(2-tailed)
Mean
Difference
Std. Error
Difference
Equal
variances
assumed
6.627 0.011 1.964 181 0.0543 0.321 0.162
Equal 1.987 181 0.058 0.321 0.167
Determinant Attributes of Online Grocery Shopping in India - An Empirical Analysis
could use these results as a basis to develop strategic marketing plans concerning the most effective
communication message to promote online grocery shopping behaviour.
The results emphasise the significant influence of critical factors affecting online grocery shopping on
consumers' online grocery buying behaviour. The findings indicated that the conveniences of doing shopping for
groceries through online and consequent time saving are the critical factors affecting online grocery buying
behaviour. Given the consumer demand for richer experiences and greater convenience, online retailers need to
rethink their marketing strategy. The direct and positive influence of trust, reliability and security concerns in
online purchase of grocery products on consumers' online grocery buying behaviour indicates that there is a
need to focus on dimensions and sub-dimensions of safety and security of financial transactions and personal
information about online grocery consumers.
The results underscore the importance of service support, personalised attention and price promotions
in online grocery buying behaviour. The results emphasise that internet retailers need to ensure timely delivery
of ordered items via well-managed inventory, offer an order-tracking tool to customers, and provide appropriate
customer support. It is also worth mentioning that retailers need to develop abilities to deliver a complete
shopping experience that is seamless, differentiated and ultimately personal since it is acknowledged that
consumers are calling for more effective personalization.
The results revealed that online grocery shopping attitudes are influenced by various needs including
functional, financial, psychological and physical benefits of online grocery shopping. It means that consumers
worry about perceived importance of negative consequences in the case of poor choice when they purchase
grocery products through internet. It is imperative for the online retailers to create high brand awareness among
consumers to ensure they feel confident and sure about the grocery products purchased from online grocery
stores.
Lastly, the consumers appear to be more satisfied with online grocery shopping. This leads to
consumers‟ increased level of familiarity with the online grocery stores and therefore increased positive
perceptions and favourable attitudes and purchase behaviour towards online grocery.
Acknowledgements
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Dr. Ch. Jayasankara Prasad " Determinant Attributes of Online Grocery Shopping In India - An
Empirical Analysis” IOSR Journal of Business and Management (IOSR-JBM) Volume. 20.