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Understand Customer Behavior for online Grocery Stores

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Understand customer behavior for online grocery stores

Overview of the project:

Currently, the online grocery market is at a nascent stage in India. Usually, the Indian consumers have a habit of buying grocery products from trusted local stores and big brands. The awareness of online grocery is yet to gain the mindshare of consumers, with only 1 to 1.5 per cent of the total groceries which Indians purchase online.

The market has seen the entry of many emerging players over the years like Bigbasket, ZopNow, Localbanya, Aaramshop etc, and in the recent past some new players have made its penetration like Pinkcitykirana, Grofers, PepperTap, etc. But none of them have been able to gain a significant market share. The reason being that online grocery business is a very capital intensive business and maintaining an inventory model of perishable goods involves high handling, packaging and delivery costs per order which the customer is not willing to bear. Margins are below 10%. The companies are trying different business models to differentiate themselves but so far, have not been successful.

In this report, I will do secondary research on how to improve online visitor and how to convert visitors to shopping.

For this, understanding customer behavior is important which will be done by doing primary research i.e. market survey.

The questionnaire for that is following:

  1. How long do you spend doing your grocery shopping on average, each week, including transportation?
  1. Less than an hour
  2. Two hours        
  3. Three hours
  4. More than three hours

  1. How do you choose your grocery products?
  1. Brand
  2. Price
  3. Quality
  4. Habit
  1. Which of the following is the most important reason for grocery shopping online?
  1. My preferred supermarket is too far away.
  2. Online shopping is easier for me as I don’t have to carry heavy bags
  3. Online shopping allows me to order items in bulk.
  4. It is difficult for me to visit my local supermarket as I have health problems
  5. I do not drive/ own a car so getting to a local store is difficult for me
  6. My local shoppinh center does not meet my needs
  7. Online shopping helps me buy healthier food
  8. I work and online shopping allows me to deliver my goods at a time suitable for me
  9. Others, please specify
  1. Some online grocery retailers offer one hour delivery slots, would buying from these retailers encourage you to buy your groceries online rather than from supermarket store?
  1. Yes
  2. No
  3. Don’t know
  1. What according to you could be the triggering factors to convert people to purchase groceries online?
  1. Wider availability and accessibility of internet
  2. Free home delivery
  3. Immediate/same day delivery
  4. Recommendation from peer group
  5. Exposure to advertisement
  6. Browsing across interesting commercial websites
  7. Exposure to advertisement/ google
  8. other
  1. What do you prefer when purchasing grocery online?
  1. App
  2. Website
  3. Don’t know

Please indicate the degree of agreement for the following statements

  1. What do you think about shopping grocery online?

                                                        Strongly Agree Agree Disagree  SD

  1. It can improve efficiency in purchasing
  2. Save a lot of time
  3. Be more convenient
  4. Provide wider product assortment
  5. Provide in depth product information
  6. Allow me to buy new product
  7. Saves money on travelling
  8. Is less stressful
  9. Helps to control my spending habits

  1. Which according to you are purchase drivers from physical stores vis-à-vis virtual stores in grocery?

                                                Physical store                        Online



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