3 Zijmr Vol5 Issue6 June2015

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CONSUMER PERCEPTION TOWARDS ONLINE GROCERY STORES, CHENNAI
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ZENITH International Journal of Multidisciplinary Research ______________ISSN 2231-5780
Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in
CONSUMER PERCEPTION TOWARDS ONLINE GROCERY

STORES, CHENNAI
S.SATHIYARAJ*, A. SANTHOSH KUMAR** AND A.K.SUBRAMANI***

*
I YEAR M.B.A,
VEL TECH BUSINESS SCHOOL, VEL TECH UNIVERSITY,
AVADI, CHENNAI – 600062. TAMIL NADU, INDIA.
**
I YEAR M.B.A,
AVADI, CHENNAI – 600062. TAMIL NADU, INDIA.
***
ASSISTANT PROFESSOR,
AVADI, CHENNAI – 600062, TAMIL NADU, INDIA.
ABSTRACT
Consumers are playing an important role in online shopping. The increasing use of Internet
by the younger generation in India provides an emerging prospect for online retailers. If online
retailers know the factors affecting Indian consumers’ buying behaviour, and the associations
between these factors and type of online buyers, then they can further develop their marketing
strategies to convert potential customers into active ones. The main objective of the study is to
determine the customer perception towards online grocery shopping in Chennai. The sources of
data used in this project report are both primary and secondary data. Descriptive research type is
used for this research. Primary data consists of original information gathered from sample size of
200 respondents residing in Chennai, Tamil Nadu through Google forms, which is posted in social
networking sites. Survey method is used to collect the primary data. The major findings of the study
are 29% of respondents quoted the reason for choosing the online shopping is to purchase unique
and special articles, and they want to find the best price of the product. The outcome of the research
paper also revealed that the demographic variables, such as gender, age group don’t have influence
of the factors of customer satisfaction.
KEYWORDS: Buyer behaviour, Consumer perception, Online grocery Shopping, Online

shopping.
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Vol.5 (6), JUNE (2015)
I. INTRODUCTION
The term “perception” can be defined as the ability to derive meaning. Derived from the
word “perceive”, it refers to the ability of giving meaning to whatever is sensed by our sense
organs. Schiff man defines it as “the process by which an individual selects, organizes, and
interprets stimuli into a meaningful and coherent picture of the world.” The term customer
perception can be defined as, “a marketing concept that encompasses
a customer's impression, awareness and/or consciousness about a company or its offerings.
Customer perception is typically affected by advertising, reviews, public relations, social media,
personal experiences and other channels.” Consumer perception of price, value, quality are the
pivotal determinants of shopping behaviour.
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 Electronic Commerce
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. This study is an attempt to know the consumer
perception towards purchasing grocery item through online.
II. INDUSTRY PROFILE

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 longer 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
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Vol.5 (6), JUNE (2015)
everyday convenience.
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.
III. LITERATURE REVIEW

"India is among the fastest-growing markets and has been identified as one of the
significant potential markets for the company,"
Vijayasarathy (2004),in his research used a sample of 281 consumers to test a model of
consumer intention to use on-line shopping. The study found compatibility, usefulness, ease of
use, and security to be significant predictors of attitude towards on-line shopping, but privacy was
not. Another finding showed that intention to use on-line shopping was strongly influenced by
attitude toward on-line shopping, normative beliefs, and self-efficacy.
Rainu Tan veer Singh (2012),he was undertaken the project in Nirala Imex Inc. in Taiwanese
market in selling of Indian grocery items to the local retailers & wholesaler in the Taiwanese
market. The project first studied the attitude of customers towards online shopping, alsodetermining
the factors which influence the consumer to purchase goods and service.The second half of the
project depicted the attributes of online shopping influencing thepurchase decision by the
respondent. It also determined the issues regarding the onlineshopping.The third part of the project
determines the purchase decision with respect to grocery. It determined the place preference of
grocery shopping with respect to price, quality, variety,proximity and offers/ discounts.The project
also recommended the business operational plan which works with contracting dealership with the
local Kirana stores.
Muralikrishnan, B(2012),country manager at eBay's India in his article 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,
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Vol.5 (6), JUNE (2015)
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 Technopak 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%.
George Adamidis et al (2006), in this paper, the authors discussed about specific aspect of
shopping; grocery shopping. Grocery shopping is an essential and routine type of consumer
behavior, which over the last few decades has undergone major changes due to the rapid
evolution of technology. E-grocery is the new form of grocery shopping, which allows consumers
to order products via the Internet from the convenience of their house. The evolution of online
and in-store grocery shopping is largely determined by the motives and the behavior of
consumers. The aim of this paper is to investigate and explain Cypriot consumer’s perceptions
and responses towards online grocery shopping. A survey that utilized a self-administered
questionnaire for collecting data from respondents, was conducted at the capital of Cyprus;
Nicosia. Cypriot consumers are not ready yet to accept e-grocery shopping as an alternative to
traditional grocery shopping. Based on the findings of this survey, “the good quality of the
products offered” and “a money back guarantee” can be decided upon by the e-grocers as it seems
to be the better risk relievers. In addition, “the competitive prices of the products”, “safe dealings
through the Internet” and “loyalty to well-known products” may consist highly effective
incentives to increase the number of online shoppers.
IV OBJECTIVES OF STUDY:
PRIMARY OBJECTIVE:
 To study the customer perception towards onlinegrocery shopping in Chennai.
SECONDARY OBJECTIVES:
 To find out the factors which influences the attitude of customers towards online grocery
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.
V LIMITATION OF THE STUDY:

 This research collected the primary data through online survey using google forms, where
direct interaction between researcher and respondents were not possible.
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Vol.5 (6), JUNE (2015)
 Since the online survey using Google forms were designed and posted in
Socialnetworking sites, the samples were not restricted based on geographical location.
 The sample size 50 may not be suitable to enumerate the true population.
 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 grocery shopping which acts as an agent to the online
retail industry to support its business operations.
VI RESEARCH DESIGN AND METHODOLOGY:

The sources of data used in this project report are both primary and secondary data.
Descriptive research type is used for this research. Primary data consists of original information
gathered from sample size of 200 respondents residing in Chennai, Tamil Nadu through google
forms, which is posted in social networking sites. Survey method is used to collect the primary data.
The major parameter of interest is the subgroup of peoplewho are working professional and tech
savvy having an experience in online shopping. The two other subsidiary parameters of interest are,
the respondent should also have an experience grocery shopping andthe female respondent who
have an online shopping experience. The convenience sampling technique is used for the research,
so the respondents who are interested to participation in this research can record their responses.
VII DATA ANALYSIS AND INTERPRETATION

Analysis and interpretation are central steps in the research process. The aim of the analysis is to
organize, classify and summarize the collected data so that they can be better comprehended and
interpreted to give answers to the questions that triggered the research. Interpretation is the search
for the broader meaning of findings. Analysis is not fulfilled without interpretation; and
interpretation cannot proceed without analysis. So, both are inter dependent.
1. FREQUENCY ANALYSIS:
Percentage analysis is one of the statistical measures used to describe the characteristics of the
sample or population in totality. Percentage analysis involves computing measures of variables
selected of the study and its finding will give easy interpretation for the reader.
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Vol.5 (6), JUNE (2015)
. Table 1 Classification of respondents based on Age, Gender and Occupation

S.no Particulars Frequency Percentage
1. AGE:
18-25 years 76 38.0
25-30 years 81 40.5
Above 30 years 43 21.5
2. GENDER:
Male 144 72
Female 56 28
3. OCCUPATION:
Student 52 26
Employee(Private /Public) 88 44
Business 60 30
4. Marital status
Single 74 37.0
Married 126 63.0
5 Supporting device for internet connection

Desktop 35 17.5
Laptop 61 30.5
Mobile 56 28.0
Tablet 48 24.0
(Source: Primary Data)
From the above Table 1.It is inferred that, 40.5% of respondents were belongs to the age
group of 25 – 30 years. Majority (72%)of the respondents were Male and remaining were Female.
44% of the respondents are working in Private /Public companies. Majority of the respondents were
married. 30.5% of respondents are using internet connection through Laptop computer.
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Vol.5 (6), JUNE (2015)
Table 2 Frequency table – Consumer perception

S.No Particulars Frequency Percent
1 Frequency of Online shopping
Daily 30 15.0
Weekly once 58 29.0
Monthly once 85 42.5
Rarely never 27 13.5
2 Why need to online shopping

Home delivery 44 22.0
Unique and special 58 29.0
Find the best price 57 28.5
No time 41 20.5
3 Online shopping is beneficial

Yes 90 45.0
No 110 55.0
4 Shopping in grocery items

Local market 28 13
Nearby Retail shops 58 29
Wholesalers 46 23
Super market 46 23
Online shopping 24 12
Table 2 presents that, 42.5% of respondents are doing online shopping monthly once, and whereas around 15%
of the respondents responded that they are doing online shopping daily. Around 29% of respondents quoted the reason
for choosing the online shopping is to purchase unique and special articles, and they want to find the best price of the
product. The interesting as well as contradicting fact is about 55% of the respondents opined that the online shopping is
not beneficial, whereas the remaining 45% of the respondents were opined that it is beneficial. 29% of respondents buy
grocery items from nearby retail shops.
2. MEAN AND STANDARD DEVIATION:

Table 3: Mean and SD of factors of consumer satisfaction
S.No Parameters Mean Std. Deviation

1 User friendly 3.03 .690
2 Adequate search option 4.12 .796
3 Productassortments/categories 4.14 .764
4 Payment options 4.24 .718
5 Cash on delivery 4.97 .793
6 Offers and discounts 4.44 .769
7 Free shipments 4.27 .724
8 Login facility 4.33 .712
30
Vol.5 (6), JUNE (2015)
From the above table 3, it is inferred that the respondents perceive higher level of satisfaction with
respect to adequate search option, Product categories, payment options, cash on delivery, offers and
discounts, free shipments, login facility with the mean value of above 4.00, while compared to user
friendliness with the mean vale of 3.03.
3. INDEPENDENT SAMPLE T-TEST:

HYPOTHESIS I:
Null Hypothesis: There is no significant difference between male and female respondents with
respect to the factors of consumer satisfaction.
Table 4.Independent sample t test for significant difference between male and female
respondents with respect to the factors of the consumer satisfaction
S.No Particulars Gender Mean Std. Deviation t value p value

1. Male 1.62 0.690 1.936 0.054
User friendly
Female 1.41 0.654
2. Male 2.05 0.796 0.183 0.855
Adequate search option
Female 2.07 0.783
3. Product Male 2.10 0.764 0.569 0.570
assortments/categories Female 2.04 0.762
4. Male 2.04 0.718 1.352 1.758
Payment options
Female 2.20 0.749
5. Male 2.09 0.793 1.728 0.86
Cash on delivery
Female 2.88 0.788
6. Male 2.07 0.781 1.011 0.313
Net Banking
Female 1.95 0.749
7. Male 2.17 0.769 2.608 0.316
Debit and Credit cards
Female 1.86 0.773
8. Male 2.10 0.687 2.167 0.235
Offers and discounts
Female 2.34 0.695
9. Male 2.12 0.724 0.550 0.064
Free shipments
Female 2.15 0.796
10 Male 2.13 0.712 0.578 0.112
Login facility
Female 2.20 0.699
11. Male 2.12 0.780 1.541 0.088
Order confirm screen
Female 1.93 0.783
(Source: Primary data)
From the above table 4, it is inferred that all the factors of consumer satisfaction are having the p
value greater than 0.05, so null hypothesis is accepted and alternative hypothesis is rejected at 5%
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Vol.5 (6), JUNE (2015)
level of significance. Hence it is concluded that there is no significant difference between male and
female respondents with respect to perception of consumer satisfaction towards online grocery
stores.
4. HYPOTHESIS III: CHI SQUARE TEST

Null Hypothesis: There is no association between gender and interest to buy grocery items through
online in future.
Table 5:Chi-square test for association between gender and interest to buy grocery items
through online in future.
Gender Interest to buy grocery through online in future Total Value P value
Yes No Maybe
Male 45 52 47 144
Female 10 22 24 56 3.926 0.140
Total 55 74 71 200
(Source: Primary data)
From the above table 5, it is inferred that p value is 0.140, which is greater than 0.05, the null
hypothesis is accepted and alternate hypothesis is rejected at 5 % level of significance. Hence it is
concluded that there is no association between gender and interest to buy grocery through online in
future.
VIIIDISCUSSIONS:
 42.5% of respondents were doing online shopping monthly once, whereas around 15% of
the respondents responded that they are doing online shopping daily. Around 29% of
respondents quoted the reason for choosing the online shopping is to purchase unique and
special articles, and they want to find the best price of the product.
 The interesting as well as contracting fact is about 55% of the respondents opined that the
online shopping is not beneficial, whereas the remaining 45% of the respondents were
opined it is beneficial.
 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.
IX RECOMMENDATIONS

Instead of going the regular e Commerce 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
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Vol.5 (6), JUNE (2015)
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.
X CONCLUSION:
From the above data analysis, it can be concluded 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 outcome of the research paper also revealed that the demographic variables, such as gender,
age group don’t have influence of the factors of customersatisfaction. The customers expects
improvement user friendliness of the website, in order to choose online as a medium to buy
grocery items 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.
XI BIBILIOGRAPHY
BOOKS:
1. Srinivasan, R., Services Marketing: Indian Context, PHI Learning, 2012.
2. e-Service: New Directions in Theory and Practice Edited by: Roland T. Rust;
P.K. Kannan ISBN: 978-0-7656-0807-9
3. Bateman, J.E. and Hoffman, D., Services Marketing, 4thEdition, Cengage
Learning, 2011.
4. Gronoos, C., Service Management and Marketing: Customer Management in
Service Competition, 3rdEdition, Wiley India, 2011.
5. Zeithaml, V., Bitner, M.J., Gremler, D. and Pandit, A., Services Marketing,
5thEdition, Tata McGraw-Hill Education, 2010.
WEB REFERENCES:
1. http://www.firstpost.com/tech/indias-e-commerce-market-to-touch-260-bn-
by-2025- report-255350.html
2. http://online.wsj.com/article/SB1000142405270230381650457730865228629
5634.html
3. http://www.businessworld.in/businessworld/businessworld/content/Services-
Economy-Moves-Online.html?storyInSinglePage=true
4. http://trak.in/tags/business/2011/08/23/india-online-internet-users-survey-
report- 2011/
5. http://www.boston.com/business/blogs/global-business-
hub/2012/03/the_sizzling_in.html
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Vol.5 (6), JUNE (2015)
6. http://blog.dreamstarts.in/survival-of-e-commerce-startups-in-india/#more-
161
7. http://www.vccircle.com/500/news/grocery-e-tailing-start-ups-a-dime-a-
dozen-but- investors-wary
8. George Adamides,Giannakopoulou Marianthi, Savvas Savvides, “Traditional vs
Online attitude towads grocery shopping in Cyprus”, Computers in Agriculture
and Natural Resources, 4th World Congress Conference, Proceedings of the 24-
26 July 2006 (Orlando, Florida USA) Publication Date 24 July 2006
701P0606.(doi:10.13031/2013.21848)
9. Rainu Tanveer singh, “Consumer perception towards online Grocery shopping”,
M.B.A project, submitted to University of Mumbai, 2012.
10. http://www.nptel.ac.in/courses/110105029/pdf%20sahany/Module.6-24pdf.pdf
11. http://www.kendallhunt.com/uploadedFiles/Kendall_Hunt/Content/Higher_Education/U
ploads/Hanna_4e_Ch3.pdf
12. http://www.businessdictionary.com/definition/customer-perception.html
13. http://areas.kenan-flagler.unc.edu/Marketing/
14. https://elibrary.asabe.org/abstract.asp?aid=21848&t=2&redir=&redirType=
34
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CONSUMER PERCEPTION TOWARDS ONLINE GROCERY STORES, CHENNAI

Article · June 2015

Datamining View project

E-Learning View project

The user has requested enhancement of the downloaded file.

CONSUMER PERCEPTION TOWARDS ONLINE GROCERY

S.SATHIYARAJ*, A. SANTHOSH KUMAR** AND A.K.SUBRAMANI***

KEYWORDS: Buyer behaviour, Consumer perception, Online grocery Shopping, Online

II. INDUSTRY PROFILE

III. LITERATURE REVIEW

V LIMITATION OF THE STUDY:

VI RESEARCH DESIGN AND METHODOLOGY:

VII DATA ANALYSIS AND INTERPRETATION

. Table 1 Classification of respondents based on Age, Gender and Occupation

5 Supporting device for internet connection

Table 2 Frequency table – Consumer perception

2 Why need to online shopping

3 Online shopping is beneficial

4 Shopping in grocery items

2. MEAN AND STANDARD DEVIATION:

S.No Parameters Mean Std. Deviation

3. INDEPENDENT SAMPLE T-TEST:

S.No Particulars Gender Mean Std. Deviation t value p value

4. HYPOTHESIS III: CHI SQUARE TEST

listed stores along with a convenient time of the delivery.

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S.SATHIYARAJ, A. SANTHOSH KUMAR AND A.K.SUBRAMANI