NTCC Summer Internship

Topic: Consumer Perception Towards e – grocery

STUDENT NAME: - PRIYAL GUPTA

FACULTY GUIDE’S NAME: - Dr. NISHANT KUMAR
ENROLLMENT NUMBER: - A3906419118
PROGRAMME: - BBA(GEN)
BATCH: - 2019-22
 CHAPTER 1
INTRODUCTION
Food and groceries are the basic essentials in every household. Online grocery has started to
be an emerging market in India. This type of model is mainly popular in one tier cities
nowadays like Bangalore, Mumbai, Delhi etc but still long way to go. Currently, people in
India don't prefer online grocery shopping much. They prefer to buy groceries, fruits, and
vegetables by physically examining them. This type of culture in the Indian market makes it
difficult for online grocery stores to penetrate and become popular, but on the other hand,
other e-commerce businesses are gaining more attention in the Indian market and the e-
commerce grocery industry is doing well. So, this presents a great opportunity for any
business to enter the e-grocery space.
Inventory management and logistics management traditionally require enormous capital.
Besides this, one must manage everyday domestic tasks. Tiring 12 hour shifts in the office
and transportation distress that leaves you so exhausted that the prospect of cooking seems
impossible. It is difficult for young professionals in India to shop for groceries in such an
environment. With the growing number of online grocery portals, one might wonder whether
they are viable. Online grocery was totally changing the food market due to customer
relationship. It provides products benefits and makes a service more convenient to customers.
The growth of e-commerce came about because of consumer demand and convenience.
Customers who go for online grocery shopping are influenced by more factors aside from the 
choice of products, quality, availability, price, payment security, replacement of product etc., 
such as avoiding crowdy places, avoiding the market, traffic, In addition, there is a parking
problem, prolonged waiting lines at the cashier, and carrying heavy bags until the door steps.
For the egrocery business to succeed, the service of home delivery must be considered an imp
ortant resource. To become a profitable business, the e-grocers must understand the factors
and variables that effect the cost structure. Like any successful business model, online
grocery shopping was born out of a need that was identified and amplified. Indian online
grocery shoppers have
found that purchasing groceries online is convenient, fast, and straightforward.
India may soon catch up to the global trend of online grocery retail owing to its rapid growth
in comparison to on-ground formats. The Indian retail industry is estimated to be worth over
$500 billion (one of the world's top 5 markets) and 30-40% of the businesses will be in the
online retail space over the next 7 years. Any form of e-commerce, especially e-grocery,
stands to benefit greatly from this. The grocery e-tailing market is currently largely
unorganised in India and enters such a competitive space with high entry barriers that it poses
a big challenge.
"The industry is in, at this moment in time, in an era of digital experiences, which is the road
map for how to move forward and to achieve a real, profitable growth, continues to evolve."
The study found that in five to seven years, 70% of consumers buy the product online. It is
estimated to be $ 100 billion, which is equivalent to $ 850 an annual household spending on
food and beverages, which will take place on or 2022 to 2024.
1.2 Advantages of online grocery stores

The main advantage of shopping online is easiness. By ordering online, one can quickly
search for the products he needs and not order them without physical movement on wide
streets. It also saves travel and time to go to the store. Considering the widespread availability
of the Internet, it also means that food purchases can be made from faraway places or in the
middle of other activities. For example, using an online store may allow a person to make all
his purchases during the lunch break at work. It is very helpful for those who do not have a
car or are physically unable to walk easily, because food is brought to their door. The use of
online grocery stores is increasing dramatically as more people are free to use the Internet to
shop.

1.3 Disadvantages
Perhaps one of the greatest drawbacks of online shopping is that it costs more when the food
is delivered, and the food you ordered will not come right away. If anyone has a specific
recipe, and it turned out that she had to have an extra ingredient, it probably won't be able to
order it online and receive it quickly enough to make it to their court. This is what a person is
going to get your groceries in advance of when they need them-in case the delivery may take
a day or two, the person is going to have an extra day or two of the basic messages before it
dries up. Another disadvantage is that online shops and stores power from the customer's
order to stay at home to have a certain amount of time to pick up the food when it is
delivered. In addition, online shops and stores are often under certain delivery areas.
 CHAPTER 2

Literature Review

 Sinha and Uniyal (2005) [1] in a study examined that shopping spaces refer to a
shopping mall, changing as it does from the first department store to modern
supermarkets to online shopping. It has been found that consumers behave differently
depending on the nature of the shopping situation.
 Richards Sarah (2005) [2] studied in Internet stores by conducting a global Survey of
1001 adults. The study aims to identify why people buy or not buy online, what they
buy and how much they spend, when they experience problems and how much they
buy in the future. This study has shown an interesting trend. More than six in ten
Internet users have made online purchases in the last 12 months. Ease of use was a
major factor motivating people to shop online rather than prices. Most people shop
once every two to three months, and men were at greater risk of doing so than women.
Clothes, tapes and food are the most popular items to buy online, followed by DVDs,
videos, computer games, books and tour tickets. Fear of website security was the main
reason why some people with Internet choice choose not to buy online.
 Douglas, et al (2001) [3] conducted a technical study examining key aspects of
consumer responses to online shopping. The main findings of the study were: - ease
of use was not the most important factor in local Internet shopping, perhaps due to its
(pro) local proximity. Example: "Price" was a major incentive for online shopping.
The variety of the product and the brand name of the product were also important.
Reliance has been a major concern for Internet consumers.
 Pooja Mordani (2008) [4] reviewed research into a survey of consumer perceptions
about online-based purchases and the study included experiments in which
respondents were asked to continue the online shopping process and relate their
experiences. Research has found that good information about the website plays a big
role in making consumers trustworthy while shopping online and if consumers rely on
the website then they will find it easier to use, see happiness and see that the 89th
website is less dangerous which will eventually end up with a website.
 Amar Cheema and Purushottam Papatla (2009) [5] made an effort to learn about the
importance of online information compared to offline information for online
shopping. Research has found that the relative value of online information is higher in
consumer products such as computer hardware and software than hedonic products
 such as books, music and movies, the equal value of online information decreases
with increasing consumer internet experience and online consumer confidence. of the
internet experience.
 Chih-Chien Wang (2009) [6] analyzed that knowledge as one important factor
influencing the level of trust. The results showed that the information was positively
associated with trust and online shopping activities. In other words, people who know
a lot about online shopping will trust you and buy more online. Getting used to online
marketing should make the public aware of the secure online trading methods of
building users ‟relying on online shopping.
 Ankur Kumar Rastogi (2010) [7] conducted this study in a survey of Indian online
consumers and their shopping behavior and the study attempts to analyze aspects
related to online consumer shopping behavior. Consumer purchasing behavior in
relation to online shopping was studied using a variety of social and economic uses. It
also provides support that helps researchers understand the drivers of the attitude and
purpose of online shopping, and consumer ideas about ease of use and usefulness. The
conclusions drawn from the analysis can be used as a useful guide to market trends.
The results of the study suggest that assessment of consumer shopping behavior may
contribute to a better understanding of consumer shopping behavior in relation to
online shopping.
 A study by Feng Zhu (2010) [8], shows how product and consumer characteristics
measure the impact of online consumer reviews on product sales using data from the
video game industry. The findings reveal that online reviews have a profound effect
on the games and games that are less popular with its more experienced Internet
players.
 Prof. Ashish Bhatt (2014) [9] in an article entitled "Online Customer Situation in
selected Gujarat areas" published in the Marketing Journal stated that online shopping
is becoming increasingly popular with people especially young people but today the
situation is equally popular among all marketing groups. long. In terms of each
learning method of payment depends on the income of the respondents. People from
different age groups make regular online purchases. Consumer status changes over
time. In a country like India, consumers find online shopping much more comfortable
due to the many variations such as cash on delivery, customization or customization
websites, home delivery etc.
 Prashant Singh (2014) [10] in his article "Consumer's Buying Behavior towards
Online Shopping A case study of Flipkart.Com user's in Lucknow City" published in
Abhinav said that the future of e retailers in India looked bright. E retailers offer
consumers the best way to save money and time by shopping online within the scope
of the budget. Flipkart.com offers the best prices and a completely seamless shopping
 experience. The whole concept of online shopping has changed in terms of consumer
or consumer behavior and the success of E-tailers in India depends on its popularity,
its brand image, and its distinctive policies.
 Upasana Kanchan, Naveen Kumar and Abhishek Gupta (2015) [11] in their article “A
Study of Online Buying Behavior of Customers in India” Published in the ICTACT
Journal on Management Studies stated that online shopping is popular among the
people of the new generation. The highest paid groups and educated people buy the
most through e-selling websites. People are reluctant to buy online because of security
concerns. At the same time people are resistant to change due to technical difficulties
in online shopping. Companies involved in online retail should focus on building
trustworthy relationships between manufacturers and customers.
 CHAPTER 3
Research Methodology
3.1 Research Objectives:
 To study perception of customers towards online e grocery stores.
 To identify the problems faced by customers while online shopping.
 To determine the various factors for choosing the particular shopping centre for
purchase of grocery items.
3.2 Limitations:
 The first limitation caused during the market research was to identify the respondent
who buy online and are web savvy.
 The second limitation is this cover only responses of 100 respondents, so the
perception of entire market cannot be analysed
 Other limitation in the market research was that the study will only analyse the
consumer attitude towards online grocery shopping and not the dealers, wholesalers or
retailer’s behaviour towards online grocery which acts as an agent to the online retail
industry to support its business operations.
3.3 Research Design
The sources of data used in this project report are both primary and secondary data.
3.4 Sample Design:
 Size of Sample: The sample size selected for the research is 100 in the area of Raipur.

3.5 Sampling Technique:

 Convenient sampling technique: - It is a type a sampling technique where data is

collected by the convenient of the researcher.
 CHAPTER 4
DATA ANALYSIS
Information
GENDER

Fig 4.11
Interpretation
The above diagram depicts that out of the total 100 respondent 54% of the respondent were
female as the objective was to study the consumer behaviour with respect to online grocery,
as grocery is more shopped by female respondent.
AGE

Fig 4.12
Interpretation
 The 77 % of the respondent were among 18-45 age group as these respondents are well
educated and web savvy
.  Another 7% of the respondent were ranging below 18 age bracket and the remaining 16%
were respondent were ranging above 45 age bracket, as these respondents are ready to adapt
changes.
INCOME

INCOME LEVEL

0-1 LAKH
16%
1 - 5 LAKH
5-10 LAKH
19% 48% 10 LAKH AND ABOVE

16%

Fig 4.13
Interpretation

As per the data collected it was found that majority of the population lies
between 0 – 1 lakh that is 48% and rest 16%, 20%and 16% lies between 1-5
lakh, 5-10 lakh and10 lakh and above respectively.

Fig 4.14
Interpretation
 According to the data collected most of the sample size buys apparels more via online
stores.
  Groceries are the second most item bought from online stores

Fig 4.15
Interpretation
As per the picture depicted above it is seen that 61% of the sample size usually spends 1000-
5000 on an average monthly, which indicates the users are willing to pay more price when
there is premium quality products such as branded apparels, food music etc.

Fig 4.16

Interpretation
• According to the survey most respondents feel the need when they want to be
brought home
• Another factor that motivates online shopping when comparing prices for
different products in the same area.
• The graph above also determines whether people shop online if they do not
have time to find items on the market for the product to be purchased.
 • Also respondents shop online when they are looking for a unique and unique
product that they can find in the offline market.

Fig 4.17
Interpretation
 From the diagram above we can see that people choose to shop online when they are
offered discounts.
 Also the various types of product offerings to customers also form an important factor
that encourages the respondent to shop online.
 Another feature that encourages the user to shop online is when the product they are
buying has a price tag.
 Also website design and unique ad promotions encourage the user to shop online.

Fig 4.18
Interpretation
  Respondent feel that everything is very important from design of the product to
payment options, delivery of the good to variety that is offered and the security of
their personal information.

Fig 4.19
Interpretation
 The above data depicts respondents are afraid of forgery and security of their data
while buying online
 Other issue is there is no guarantee about the products that would be delivered to
them.

Fig 4.20
Interpretation
 The graph above shows that most respondents shop at a store to buy
groceries. The reason for the purchase at a particular shopping centre can
be indicated below.
 Fig 4.21

Interpretation
 User prefer buying groceries from street vendors when it comes to price, they
can bargain get it at cheaper rates.
 When it comes to offers and discounts users prefer online stores as they
provide large variety of discounts to customers.
 When it comes to quality and variety of products respondents prefer
supermarkets as their go to shopping area.
 Users prefer local kirana stores when it comes for proximity to home , as it is
near and close to there house so it is easy for them to buy goods.

Fig 4.22
Interpretation
 According to the survey 48% are ready to buy groceries from online stores
 On other hand 44% may or may not shop online store.
 Fig 4.23
Interpretation
75% of the sample size believe that online shopping is beneficial as they provide
lots of discounts and offer.

Fig 4.24
Interpretation
 The graph above shows the respondent that they think online shopping will be useful
because it will save them time buying groceries.
 The next consecutive feature of why a consumer will buy grocery online as it will
allow the user to order easily.
 Some of the reasons why online shopping will be useful as it will allow the user to
buy all the shopping in a particular place with discounts and offers.
 CHAPTER 5
OBSERVATION AND CONCLUSION
5.1 Observation
The data above is obtained, we can conclude that there has been an increase in the number of
respondents in the online stores as they learn about this concept in the market.

• Some of the factors, which is the motivation of the user to make an online purchase:
 The ease of use of the web site.
 Discounts and promotions are provided by the parties.
 Free shipping: it is the most important factor that motivates the user to buy online.

5.2 CONCLUSION
 From the analysis of the data presented, it can be concluded that the customer is
buying the products on the website of the online shopping is on the basis of various
factors such as discounts, rebates and discounts, and a wide range of products and free
delivery to your home, ease-of-use and the ability to pay for it in cash.

 From the analysis of the data presented, it can be concluded that the majority of the
respondents would agree to buy products online rather than buying it from the
products in the traditional way.

 Of the respondents ' agreement to buy products online, with the majority of the
respondents thought that it would be beneficial to buy products online, relying on
such factors as the ease of ordering, product assortment, promotions/ offers, save your
time and avoid long lines.

 The preferred business transaction that will be beneficial not only for consumers but
also for the company, as it allows the company to keep its operating costs for the
consumer, it is so good