Project File
Project File
ON
“CONSUMERS PREFERENCE TOWARDS ONLINE GROCERY
SHOPPING IN LUDHIANA CITY “
Submitted in partial fulfilment of requirements for degree of
Master of Business Administration
(2017-2019)
Submitted to
Department of Business Administration
Punjab College of Technical Education, Baddowal, Ludhiana.
Affiliated to
Punjab Technical University, Jalandhar.
This is to certify that Ms. Gurleen Kaur Roll No.1719266 has undergone a Research Project on
“A study on consumers preference towards online grocery shopping in Ludhiana city’
under my supervision in the specialization area Marketing/finance. The work embodied in this
report is original and is of the standard expected of an MBA student and has not been submitted
in part or full to this or any other university for the award of any degree or diploma. She has
completed all requirements of guidelines for Research Project Report. The work is fit for
evaluation.
Signature of Supervisor
Designation:
DECLARATION
This is to certify that the Project Report entitled’’ A study on consumers preference towards
online grocery shopping in Ludhiana city’’ is an original work and has not been submitted is
part or full to any other university/institution for the award of any degree or diploma.
Signature of student
In the successful completion of this project inspiration and guidance of many people was
involved .A mere form of acknowledgement would be demeaning the status of this whole effort,
which has had the blessings, and supervision of the eminent person around me .First of all I
would like to thank whole-heartedly almighty God for bestowing me with all favourable
circumstances and keeping me in high spirits and I express my sincere thanks to Mr. Amitej
Singh who was there to guide me at every step during the course of this project. He gave me tips
for the improvement in project whenever required. Apart from this I feel indebted to all faculty
members of PCTE, especially who have helped, developed the right kind of attitude and
scholastic excellence in me. Last but not the least; I am very thankful to my parents, friends and
all those persons who made this research project possible, for their consistent guidance and
constructive criticism.
Abstract
The primary aim of the study is to look at the consumer’s preference towards online grocery
shopping in Ludhiana city. The data for the study was collected through questionnaires. Data was
collected from people who know how to shop online for the purpose of this study.
Table Of Contents
Chapter No. Contents Page No.
Chapter I Introduction
Chapter II Literature review
Chapter III Research Methodology
3.1. Objectives of study
3.2. Research Design
3.3. Sampling Plan
3.3.1. Target population
3.3.2. Sampling Technique
3.3.3. Sample size
3.3.4. Research instrument
3.4 Data collection
3.5 Data Analysis Tools/ Techniques
3.6 Need and Scope of Study
Chapter IV Analysis & Interpretation
Chapter V I) Findings, Conclusion & Recommendations
II) References
III) Appendices
CHAPTER – I
INTRODUCTION
1 INTRODUCTION
Food and grocery is the basic daily need of any household. Online grocery business is at
developing stage in India. This sort of model has picked up popularity in urban areas like Delhi
and Mumbai, yet at the same time it is far to go. Starting at now individuals in India are very
little acquainted with this sort of model. I individuals in the nation lean toward purchasing
things like basic needs, foods grown from the ground by physical examination of cost and
quality. In this sort of culture winning in the nation, it is extremely hard to make this sort of
model mainstream in Indian markets, however on the opposite side other web based business
organizations are increasing much prevalence in the Indian markets and web based business
basic supply industry is in its early on stage .Along these lines, this shows an awesome open
door for any firm to enter the e-basic supply space.
Grocery e-tailing in India is a to a great extent disorderly space and represents a major test as far
as firm section hindrances. The customary strategies for stock and coordination administration
call for exceptional money consuming - a business condition a large portion of the bootstrapped
Indian new companies neglect to meet. Shopping for food is of the view that living alone, far
from family, is an extreme assignment. Other than that, one needs to deal with ordinary local
problems. Tiring 12 hour moves in the workplace and transportation trouble that abandon you
feeling so depleted that the possibility of cooking appears like torment. In such a situation, it is
troublesome for youthful Indian experts to look for basic supply.
Distribution types
In-store pickup
Local delivery
Shipping
• Distribution types
Online grocer is a variation of E-commerce which is based on a brick-and-
mortar supermarket, warehouse,
In-store pickup
The essential strategy for online basic supply requesting includes clients setting orders on the
web and getting their prepared requests in the store on their way home. In-store pickup is
commonly offered for same-day shopping as it doesn't require a transportation or conveyance. It
as a rule has the lower benefit expense.
Local delivery
Most neighbourhood online food merchants have their own drivers and can convey products
quicker than the main strategy. The most widely recognized sort of individual conveyance
includes putting away Grocery stock in a distribution centre to convey to clients once arranges
are put. Another kind of individual conveyance which is less normal depends on in the nick of
time business in which there is no stockroom or stock. In this kind of conveyance, clients put
orders for 24 hour conveyance. The online merchant looks for some grocery goods on the
morning of the conveyance day.
Shipping
This strategy includes shipping perishables utilizing courier services. On the off chance that the
request contains chilly or solidified things, the food merchant will utilize the technique of "Flash
freezing" the products and pack them into unique delivery containers.
1 .3 O n l i n e S h o p p i n g S i t e s f o r G r o c e r y i n I n d i a
Online food merchant alludes to a market that enables private people and organizations to buy
basic supplies and basic need items on the web. There is typically a conveyance charge for this
administration. There are seven best sites for grocery in India as follows
Big-Basket
Grofers
Zopnow
Nature’s Basket
Reliance Fresh
Amazon Pantry
Aaramshop
CHAPTER – II
REVIEW OF LITERATURE
2) Review of Literature
Zetty M.M. Zaini 2 , Mohd Raziff Jamaluddin 3 and Mohd Salehuddin Mohd Zahari
(2011) conducte d a study “ Exploratory Studies on Online Grocery Shopping “ and
finded out most of the respondents disagree that they have enough time to shop online.
This was due to the factor that most of the respondents were working and they had less
time to purposely browsing for online grocery shopping. On the other hand, most of the
respondents agree that online shopping can be done at any time because there is no time
limit in browsing the internet. In contrast with the above statement, most of the
respondents disagree on the fact that they have time to search online grocer in the
internet. Furthermore, it is noted that most of the respondents’ perceived time is not
significant factor in searching for the online grocery product.
Harjinder Kaur and Rakesh K. Shukla ( May, 2017) conducted a study on ” consumer’s
attitude for acceptance of online grocery shopping in India” and The findings of this
study have demonstrated that, more specifically family income was the most significant
factor, age factor is also one of the significant factors. However education level or
working members in the family can help online marketers to develop positive tendency to
online shopping for grocery product while in this study marital status and occupation of
the respondent does not seems to be impacting the attitude of respondents in addition to
the factors of the delivery scheduling and costs, the aspects of time spent on ordering also
appears to be something of a systematic issue. It can be said that most of the respondents
agree that online shopping can be done at any time because there is no limit in browsing
the internet. Also, as most of the respondents are from working class so it seems that they
want their order to be delivered as per their convenient time for which they are even
ready to pay the extra delivery.
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha
Shah and Saad Rafiq Surti (2018) conducted a study “ Online Grocery Shopping and
Consumer Perception: A Case of Karachi Market in Pakistan” and the results show that
lack of variety and overpriced products also appeared to be the major factor when
choosing online grocery as the prime source of shopping. This research study provides
the existing online shopping trends and perception of people towards online grocery
shopping. Furthermore, this study provides insights into the future scope of online
grocery shopping trends in Karachi, Pakistan.
Sabari Shankar R, Nareshkkumar S March 2018 conducted a study A Descriptive
Analysis of Consumer Perception on Online Grocery Shopping and has found facts such
as married unemployed homemakers feel the joy of real time shopping is missing in
online grocery shopping. Respondents feel that monthly budget is controlled as the list of
orders can be verified and sorted at convenience and referring previous orders. Online
grocery shopping is highly welcomed by the business professionals who do not have time
to shop in retail stores and suits their busy schedules. Carry bags has become a problem
in modern retail industry and standing in a long queue is also a highly seen in the stores
and retail outlets. These problems have been solved by online grocery shopping.
Hand, Chris & Dall'Olmo Riley, Francesca & Harris, Patricia & Singh, Jaywant & Rettie,
Ruth. (2009). done a research on Online grocery shopping the research aims to establish
the role of situational factors in the process of adoption. Both qualitative and quantitative
results establish the importance of situational factors, such as having a baby or
developing health problems, as triggers for starting to buy groceries online. Many
shoppers are found to discontinue online grocery shopping once the initial trigger has
disappeared or they have experienced a problem with the service. Practical implications –
While situational factors are beyond a marketer's control, they could be used as a basis
for marketing communications content and target advertising, for instance, by using
magazines directed at new parents. Originality/value – The importance of situational
factors as triggers for the adoption of online grocery shopping suggests an erratic
adoption process, driven by circumstances rather than by a cognitive elaboration and
decision. The adoption of online shopping seems to be contingent and may be
discontinued when the initiating circumstances change.
CHAPTER – III
RESEARCH METHODOLOGY
3.1 Objectives of study
To study the customer perception towards online grocery shopping in Ludhiana city.
To explore the factors that influence customer to stop online grocery shopping
To discover the preferences of the customer in regards to the characteristics of online
shopping site.
The target population will be working group, having experience in online shopping
women / house wives, students living alone.
Stratified sampling method will be used it is a probability sampling technique where the
entire population is divided into different subgroups also called as strata, and then
randomly final subjects are selected from the different strata. Then judgment is made to
select the units from each segment based on a specified proportion. The sample will be
taken as who is working, having an experience in online shopping, students living alone
and women respondent who shop for grocery items than the male.
The sample size selected for the research will be 200 in the area of Ludhiana city.
The data collection tool which will be used for the research is “Questionnaires” to get the
primary data for the research on consumer’s preference towards online grocery shopping.
3.4 Data collection
Primary data & Secondary Data collection will be used With the purpose of answering the
research questions in this. Secondary data collection allowed addressing specific issues related
online grocery shopping. Questionnaires will be filled from target population to get qualitative as
well as quantitative data.
The information gathered through surveys will be recorded in Excel sheets. At that point with the
help of different investigation strategies like factor analysis, Chi-square, correlation and
regression, t-test and annova etc. examination of information will be done and the required data
will be determined out of it.
To figure out which factor impacts the shopper to go for web based shopping.
To discover which feature of the website attracts the client to buy the item from the internet
shopping site.
To discover the whether staple web based shopping is beneficial for the client.
To break down which factors influence the user to buy online grocery
CHAPTER IV
ANALYSIS AND INTERPRETATION
4) ANALYSIS AND INTERPRETATION
GENDER
Female 76.7%
Male 23.3%
Table 1
Analysis: Out of 202 respondents the number of male respondents is 23.3% whereas female
respondents are 76.7%.
Interpretation: Females are more concerned about grocery shopping than males. The
percentage of male who buy groceries is very less.
Figure 2
Age
18-24 41.1%
25-29 40.6%
30 and above 18.3%
Table 2
Analysis: Out of 202 respondents 41.1% are aged 18-24 which are the youngest respondents
then 40.6% of respondents are of aged 25-29 and rest 18.3% respondents belong to 30 or above
age group.
Interpretation:
Younger population have shown more interest than elder ones. As now a day’s younger
generation is more into technology and online shopping. There are very less people who are aged
above 30.
Figure 3
Occupation
Student 39.6%
Service 49.5%
Business 3%
House hold 7.9%
Table 3
Analysis: 39.6% respondents out of 202 are students. 49.5% are the respondents who are
working. 7.9% respondents are home makers and there is only 3% of respondents which are
business class.
Interpretation: By the results of occupation chart it shows that younger population and service
sector are the most interested respondents than any other.
Figure 4
Yes 44.6%
No 55.4%
Table 4
Analysis : From the above chart it can be analysed that 55.4% respondents does not do online
shopping where as 44.6% of population do grocery shopping online in Ludhiana city.
Interpretation: It can be interpreted that people are not purchasing groceries online are more
than people who are purchasing groceries online. More people are into offline shopping.
Figure 5
Bigbasket 51.0%
Amazon 53.1%
Zopnow 0%
anyother 4.3%
Table 5
Analysis: Out of 202 respondents 94 respondents answered yes they purchase groceries online.
51.0% purchase groceries online from big basket. 53.1% from amazon. And 4.3% purchase from
other site where as zopnow 0% respondents purchased groceries.
Interpretation: Amazon is the most famous site among the customers. Big basket holds 2nd
position. Zopnow scored zero % in this and there are some respondents who buy groceries online
from other sies.
Figure 6
Weekly 1.5%
Monthly 8.4%
Table 6
Analysis: Out of 202 responses 53.5 % are who do not do grocery shopping online. 36.6% do
online shopping only for special occasion. 8.4% respondents do monthly shopping online. And
only 1.5% of population do grocery shopping on weekly basis.
Interpretation: This can be interpreted that mostly people do grocery shopping online when
there is special occasion. There is very less population who do shopping on regular basis as only
1.5% respondents do online shopping weekly.
Figure 7
500-1000 13.4%
1000-1500 28.2%
1500-2500 4.9%
Table 7
Analysis: 28.2 % respondents out of 202 spend 1000-1500 Rs. 13.4% spends 500-1000 on
online grocery shopping there is only 4.9% of respondents who spend 1500-2500 monthly.
Interpretation: People spend less money on online grocery shopping as there is no respondent
who have spent 3000 or above on online grocery.
Figure 8
Analysis: Respondents more than 50 felt that costs were lower than regular grocery stores.
Where more than 100 respondents felt it’s neither likely nor unlikely that prices are lower.
Respondents more than 50% felt that costs are not as same as regular stores as 40 % respondents
felt it is same.
Interpretation: It can be interpreted that customers know that prices are different from regular
market and also lower than that.
Figure 9
What is the maximum delivery fee you would be able to pay? (In Rs)
50-100 20.8%
100-150 5.9%
Table 8
Analysis: 70.3 % respondents prefer free delivery where 20.8% would spend 50-100 Rs delivery
charges. 5.9% respondents are ready to pay 100-150 Rs delivery charges. 2.5% are ready to give
more than 150 delivery charges.
Interpretation: People are more likely to get products delivered for free as 29.2% respondents
are ready to pay delivery fee for online grocery shopping.
Figure 10
How likely would you be to buy groceries online if there were an annual membership fee?
Very likely 5%
Likely 22.3%
Unlikely 33.2%
Table 9
Analysis: 5% respondents out of 202 are very likely to get groceries delivered if there is a annual
membership fees. 33.2% are unlikely to buy groceries on membership fees. 35.6 % are neither
likely nor likely. 33.2% respondents are unlikely to buy groceries online on membership fees.
Interpretation
This can be interpreted as 35.6 % respondents are neither likely or unlikely 22.3 % are likely so
people will may or may not pay membership fees. As more people are unlikely to pay the
membership fees.
Figure 11
Analysis: More than 150 respondents marked saving time a s a very important factor and upto 13
respondents marked it as somewhat important and very less population marked it as neither
important or un important. Getting Better prices online is a important consideration. Navigation
of site is not much important for customers but it is also not unimportant. Respondents marked
product Varity as somewhat important and very important.
Interpretation: customers are looking for product Variety, better prices on online shopping and
also time saving is a major consideration. The most important thing for customers interpreted is
saving time.
Figure 12
Table 10
Analysis: out of 202 responses 60.4% shop from Local Kirana stores 31.7% shop groceries from
super markets. 4.5% from sabzi mandi and 3.5% from a ration shop.
Interpretation: People are purchasing from nearby shops where they go and purchase groceries
by self.
Figure 13
Other 0.8%
Table 11
Analysis: 65.8 % feel to shop online when they want something unique and special 7.9 %
respondents shop online when they want home delivery or they don’t want to go outside. 5.4 %
shop online when they don’t have time to shop. 18.3% feel to shop online when they want to
compare prices.
Interpretation: It can be interpreted that 65.8% feel to shop online grocery when they want a
unique item. If they don’t need any unique item they will purchase from local stores.
Figure 14
variety 32.5%
Table 12
Analysis: The features which attract customers the most is discount offered. 86% respondent feel
to shop when there are discounts. 32.5% respondents feel to buy when they see variety and rest
5.3 % gets attracted by design of a website.
Interpretation: The feature which attracts people the most is discounts offered by company.
And the other feature is variety. People feel to have more variety and discounts online.
Figure 15
No gurantee 9.4%
Table 13
Analysis: out of 202 respondents 50% find it to be too much clutter to do online shopping.34.7
% find out issues regarding physical examination of goods. 9.4 % respondents feel there is no
guarantee of authenticated goods. 5.9% have security issue.
Interpretation:
This can be interpreted that most of the customer found it too much clutter to online shop
grocery. The other major issue is Physical examination of the grocery items.
Figure 16
Analysis: More than 150 respondents want shopping experience to be user friendly. Where 30-
40 respondents feel that this factor is somewhat important. Respondents feel satisfied when they
have adequate search option . offer and discounts , free shipping are the most important factors
which effect customer satisfaction.
Interpretation: product options, free shipping, tracking of items, user friendliness, adequate
search option are the most important factors which effect customer satisfaction. Where as this
has been seen net banking and debit card facility is not much important for respondents while
shopping.
Figure 17
Yes 38.1%
No 49%
May be 12.9%
Table 14
Analysis: 49% respondents out of 202 think buying groceries online is not beneficial where as
38.1% say that it’s is beneficial to buy groceries online. 12.9% respondents are not sure that it is
beneficial or not.
Interpretation: Most of respondents don’t feel grocery shopping online is beneficial. As some
respondents are like it can be beneficial.
Figure 18
other 1%
Table 15
Analysis: Respondnets who think online shopping is benefitial 40% of them feel it is easy to
order. Where 40% think it is benefitial because they can see variety at one place. 9.5% think
online shopping saves time . 11% feel it is benefitial because of discounts and offers. Where rest
do it to avoid long ques.
Interpratation: The major reason people only use online shopping because they find varity at
one place or it is easy to order online. Discount and offers and time saving is a important factor
as well which make people to buy online.
Figure 19
Table 16
Analysis: 55% respondents think offline shopping is a easier method and 45 % think online
shopping is beneficial.
Interpretation: out of 202 responses most of the respondents feel offline shopping is easier than
online shopping.
CHAPTER V
FINDINGS AND RECOMMENDATIONS
I) FINDINGS
2) Among those who preferred online shopping majority of age is from 18-30.
3) It has been revealed that 55.4% are not open to online grocery shopping.
4) Amazon and Big basket are leading online grocery sites in Ludhiana city.
5) It has been observed that traditional channels are still more preferred than this online method.
7) Majority preferred online grocery because it saves time, easy to order and they find variety at
one place.
8) Most of respondents who prefer online grocery shopping they do it on special occasion or on
monthly basis.
9) Majority who have done online grocery shopping on monthly basis spent up 1500 Rs on it.
10) Lack of variety, lack of discounts and offers and overpriced items appeared to be the major
factor of choosing online grocery shopping.
11) Free delivery, discount and offers, user friendliness, free shipping, tracking of items, cash on
delivery, payments options, adequate search option are the factors which affects customer
satisfaction the most.
12) Physical examination and too much clutter while shopping are the important issues in online
grocery shopping.
13) It can be depicted from data that local kiryana stores are preferred by respondents.
14) Majority of respondents does not feel that online shopping is beneficial.
RECOMMENDATIONS
There is an image problem for online shopping. There is a need to position online
grocery shopping the way that it can go hand in hand with traditional model.
Companies need to focus first on those people who are living alone or working who
actually can feel the need of this model.
Brand power can be used to attract customers online who feel less availability of certain
brand.
It is suggested to online grocery shopping sites that they allow consumers to order
products by giving a call rather than searching for items on website.
CONCLUSION
From the above data it can be concluded that people have not opted online shopping
specially for groceries. Analysis defined that there is an image problem for online shopping.
As customers feel it is too much clutter shopping online and many raised the issue of
physical examination of goods. Security is another issue which have defined a certain image
of online shopping among population. And the consumers who buy groceries online, they
purchase them on the basis of factors like Discounts and offers, Varity at one place, free
home delivery, website user friendliness, cash on delivery and different payment options.
II) REFERANCES
Budhiraja, H. &. (n.d.). Consumer purchase intentions for E grocery shopping in india. Journal
of business and management, 6.
chincholkar, S. (2016). consumer Behaviour towards Online Grocery Retail store" Local
Banya.com" in mumbai region. IJRMT, 4.
Kumar, S. &. (2015). Consumer perception towards online grocery stores, Chennai.
International journal of multidiciplineary Research , 11.
Nagendra. (n.d.). An exploratory study on consumer attitude towards online grocery shopping. 5.
Noor, A. &. (2011). Exploratory study on online grocery shopping. international confrance on
information and finanacial engenering , 5.
punjani, K. (2015). A study on female consumers perception towards online grocery shopping
with special referance to kalyan dombivli city. IJRFM, 7.
Raghu, Y. &. (2018). determinant attributes of online grocery shopping in india- an Emphirical
Analysis. Journal of busines management, 14.
saleem, M. &. (2018). online grocery shoppingand consumer perception: A case of Karachi
market of Pakistan. IBIMA, 13.
Shukla, R. &. (2017). Consumer attitude for acceptance of online grocery shopping in india.
International Journal of Current reserch , 9.
ANNEXURE
QUESTIONNAIRE
I, Gurleen kaur student of MBA, from PCTE, is c arrying out dissertation titled „
“CONSUMERS PREFERENCE TOWARDS ONLINE GROCERY SHOPPING IN
LUDHIANA 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.
Name:………………………………………
Gender:- Male □ Female □
Email-…………………………………………………………………………………
Age:-
18-24 □
25-30 □
30 and above □
Occupation:-
Student □
Service □
Business □
House Hold □
1) Have you ever purchased groceries online via internet?
Yes□
No□
Bigbasket.com□
ZopNow.com□
Youmart.in□
Naturebasket.com□
Any other______________
Weekly□
Only use for special occasion □
Monthly□
I never do my grocery shopping online□.
500 – 1000□
1000 – 1500□
1500 – 2500 □
Rs0□
Rs50-100□
Rs100-150
Rs150 or more□
7) How likely would you be to buy groceries online and have them delivered if there were an
annual membership fee but not delivery charge?
Very likely□
Likely□
Unlikely□
Very unlikely□
8) How important are each of the following factors relative to your Consideration of
Purchasing groceries online instead of going to the store?
Ration Shop□
Sabzi Mandi□
Supermarkets□
Any other_________________
Discounts offered □
Variety□
Any other______________
No guarantee□
Security issue □
Physical examination □
Any other________________
Yes □
No□
Easy to order□
Saves Time□
Avoid long queues□
Any other____________
Bigbasket.co
ZopNow.com□
Youmart.in□
Localkiranastore.□
Naturebasket.com□
Any other____________
Online shopping
Offline shopping