Project report

A study on customer preference towards Online Grocery stores in NCR
MONIRBA Page 1
A STUDY ON CUSTOMER PREFERENCE TOWARDS
ONLINE GROCERY SHOPPING IN NCR
Dissertation submitted in partial fulfillment of the requirements for the award of
the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
ALLAHABAD UNIVERSITY
By
VIPUL ANAND
Endrollment No..:
15AU/76
Under the guidance of
Dr. Mr. Anil Srivastava
DIRECTOR
MOTILAL NEHRU INSTITUTE OF RESEARCH
&
BUSINESS ADMINISTRATION
UNIVERSITY OF ALLAHABAD

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DECLARATION
I, hereby declare that this Dissertation titled “A STUDY ON CUSTOMER
PREFERENCE TOWARDS ONLINE GROCERY SHOPPING IN
NCR ” is the result of the project work carried out by me under the guidance of Dr.
Mr. Anil Srivastava , Director, MONIRBA in partial fulfillment for the award of
Master’s Degree in Business Administration by University Of Allahabad.
I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other university or Institute for award of any other degree or
Diploma or Certificate.
Date: 16-July-2016 VIPUL ANAND
Place: NCR Enrollment No: 15AU/76

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CERTIFICATE OF ORIGINALITY
This is to certify that dissertation titled “A STUDY ON CUSTOMER
PREFERENCE TOWARDS ONLINE GROCERY SHOPPINGIN
NCR ” is an original work of Mr.Vipul Anand , bearing University
Enrollment No - 15AU/76 and is being submitted in partial fulfillment for
the award of the Master’s Degree in Business Administration of
University Of Allahabad. The report has not been submitted earlier either
to this University/ Institution for the fulfillment of the requirement of a
course of study.

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ACKNOWLEDGEMENT
The successful completion of any task would be incomplete without
mentioning the people who made it possible and whose constant guidance
secured as success.
I express my deep gratitude to our beloved Director Dr. Anil Srivastava,
MONIRBA, University Of Allahabad and for his support in the
successful completion of the project and for giving an opportunity to
complete this studysuccessfully.
It is with humble sense and gratitude with heartfelt appreciation to my
guide Dr. Mr. A.K.Singhal, Professor, MONIRBA, whose estimable
aid, keen surveillance, support, continued inspiration, valuable guidance
and meticulous supervision throughout project and to bring this project to
a successful completion.
I would also like to thank all the faculties and staffs for providing every
form of assistance and guidance whenever required. I am grateful to my
parents, friends and well-wishers who have encouraged and supported me
in completion of the project.
VIPUL ANAND
Place: NCR Enrollment No 15AU/76

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TABLE OF CONTENTS
CHAPTER NO PARTICULARS PAGE NO
LIST OF TABLES
Vii, Viii
LIST OF CHARTS 1X, X
EXECUTIVE SUMMARY X1
1 INTRODUCTION
Introduction to online grocery shopping industry
Current scenario of online grocery shopping industry
Models of e-Commerce
Factors of online Grocery Shopping
Online Shopping in India
Online Grocery Shopping in India
Advantages of online grocery shopping
Disadvantages of online grocery shopping
How does online grocery shopping works.
1-13
2 THEORETICAL BACKGROUND OF THE TOPIC
Theoretical background of the Study
Competitors in online grocery shopping stores in
National Capital
Region
Bigmamma.in
Bigbasket.com
ZopNow.com
Youmart.in
NatureBasket.com
14-21
3 REVIEW OF LITERATURE ANDRESEARCH DESIGN
Literature review
Statement of the problem
Objectives of the study
Scope of the Study
Research Methodology
22-27

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Data Collection
Sample Design
Plan of Analysis
Limitations of the study
Chapter Scheme
4 DATA ANALYSIS AND INTERPRETATION
Analysis And Interpretation of Data
28-68
5 FINDINGS, CONCLUSION AND SUGGESTIONS
Summary of findings
Suggestions and Recommendations
Conclusion
69-72
BIBLIOGRAPHY
ANNEXURE

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LIST OF TABLES
TABLE NO DESCRIPTION PAGE NO
4.1 Table showing the Age of the respondents
4.2
Table showing the Gender of the Respondents (Gender
ratio)
4.3 Table showing the occupation of the respondents
4.4 Table showing whether the respondents use the internet or
not.
4.5 Table showing where the respondents have access to the
internet for online shopping.
4.6 Table showing how many times per week do respondents
go online(email, internet, facebook)
4.7
Table showing whether the respondents have ever
purchased anything online or not
4.8 Table showing which item the respondents shop online.
4.9 Table showing the respondents have ever purchased
groceries online via internet or not.
4.10 Table showing from which website the respondents do
purchases the groceries.
4.11 Table showing how often the respondents do their grocery
shopping online
4.12
Table showing how much the respondents spend monthly
on online groceries shopping (in Rs)
4.13 Table showing the maximum delivery fee the respondents

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would able to pay.
4.14 Table showing how likely the respondents would buy
groceries online and have them delivered, if there were an
annual membership fee but not delivery charge
4.15 Table showing the maximum membership fee that the
respondents would be willing to pay.
4.16 Table shows how important are each of the following
factors relative to the respondent for the consideration of
Purchasing groceries online instead of going to the store?
4.17 Table showing where do the respondents shop grocery
items if not in online
4.18 Table showing when do the respondents feel the need to
shop online.
4.19 Table showing the features in online shopping website
attracts the respondents
4.20 Table showing the respondents issues regarding online
shopping
4.21 Table showing do the respondents think buying groceries
online is beneficial
4.22 Table showing why do the respondents think why it is
beneficial
4.23 Table showing the respondents favourite online grocery
shopping website
4.24 Table showing according to the respondents which is the
easier way to make shopping

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LIST OF CHARTS
CHART NO DESCRIPTION PAGE NO
4.1 Chart showing the Age of the respondents
4.2 Chart showing the Gender of the Respondents (Gender ratio)
4.3 Chart showing the Occupation level of the respondents
4.4 Chart showing whether the respondents use the internet or
not.
4.5 Chart showing where the respondents have access to the
internet
4.6 Chart showing how many times per week do respondents go
online (email, internet, facebook)
4.7 Chart showing whether the respondents have ever purchased
anything online or not
4.8 Chart showing which item the respondents shop online
4.9
Chart showing the respondents have ever purchased
groceries online via internet or not.
4.10 Chart showing from which website the respondents do
purchases the groceries.
4.11 Chart showing how often the respondents do their grocery
shopping online
4.12 Chart showing how much the respondents spend monthly on
online groceries shopping (in Rs)
4.13
Chart shows the maximum delivery fee the respondents
would able to pay
4.14 Chart shows how likely the respondents would buy
groceries online and have them delivered, if there were an

R V Institute of Management. Page 10
annual membership fee but not delivery charge
4.15
Chart showing the maximum membership fee that the
respondents would be willing to pay.
4.16.1 Chart shows how saving time is important factors relative to
the respondent for the consideration of Purchasing groceries
online instead of going to the store
4.16.2 Chart shows how price are important factors relative to the
respondent for the consideration of Purchasing groceries
online instead of going to the store
4.16.3 Chart shows how easy to order feature is important factors
relative to the respondent for the consideration of Purchasing
groceries online instead of going to the store
4.16.4 Chart shows how product variety is important factors relative
to the respondent for the consideration of Purchasing
groceries online instead of going to the store
4.17 Chart showing where do the respondents shop grocery items
if not in online
4.18 Chart showing When do the respondents feel the need to shop
online.
4.19 Chart showing What features in online shopping
website attracts the respondents.
4.20 Chart showing the respondents issues regarding online
shopping
4.21 Chart showing do the respondents think buying groceries
online is beneficial
4.22 Chart showing why do the respondents think it is beneficial
4.23 Chart showing the respondents favorite online grocery

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shopping website
4.24 Chart showing according to the respondents which is the
easier way to make shopping

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EXECUTIVE SUMMARY
Internet and Information technology have made tremendous contributions for business
transformation witnessed nowadays all over the world. This has given birth to E-
commerce which encompasses several pre-purchase and post-purchase activities
leading to exchange of products or service or information over electronic systems
such as the internet and the other Telecommunication networks.
Analysing the competitive advantage of E-Commerce it is observed that E-
Commerce enables simpler, faster and efficient business transactions. For developing
country like India, E-Commerce offer considerable opportunity for growth.
E-commerce leads to a boon for the current economic downturn. As India‟s e-
commerce market is worth about Rs 1,07,800 crores in 2015. About 60% of this is
travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge,
online grocery shopping etc.).
Online retailing comprises about 15%. India has close to 70 million online shoppers
and is growing at an estimated 40-45% per annum.
The rapid growth of e-commerce in India is being driven by greater customer choice
and improved convenience.
The project will first study the attitude of customers towards online shopping, also
determining the factors which influence the consumer to purchase goods and service.
The second half of the project will depict the attributes of online shopping influencing
the purchase decision by the respondent. It will also determine the issues regarding
the online shopping.
The third part of the project determines the purchase decision with respect to grocery.
It will determine the place preference of grocery shopping with respect to price,
quality, variety, proximity and offers/ discounts.
The project will also recommend the business operational plan which works with
contracting dealership with the local kirana stores.

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CHAPTER 1
INTRODUCTIONTO THE ONLINE GROCERYSHOPPING
INDUSTRY
Growing interest by consumers to point and click their way through nearly all aspects
of daily life has fueled the Internet economy to develop services and sell products
online even in areas that were once the sole domain of traditional businesses, such as
grocery stores and pharmacies. Businesses that sell consumer products online have
been coined as “etailers” and as “e-grocers” in the case of online grocery retailers.
Some of the reasons why an increasing number of consumers buy groceries online are
common to all Internet purchases, including better prices, larger selection,
convenience, and time savings. Home delivery of items purchased online is appealing
to those for whom going out to shop is difficult for various reasons, such as physical
disability, the need to care for small children, the lack of adequate or convenient
transportation, and/or a busy lifestyle.
Buying groceries and other products online unchains consumers from physically
driving to and shopping in traditional stores. In a study by McKinsey and Company,
84% of consumers who order groceries online do it as a substitute for frequent regular
trips to a grocery store, rather than substituting for infrequent trips to stock up on
limited items or for special occasions. Hence, the industry could obtain the mass
critical to success. The value proposition of e-grocers is to become a single-source
solution for the busy consumer today. E-grocers provide information as well as
products and services.
E-grocers‟ scheduling requirements and the desire to consolidate purchasing activities
to a single trip are two factors affecting the consumers‟ desire to purchase groceries
online. Other factors negatively influencing consumers decisions to purchase
groceries or other goods online include shipping costs, credit card security, the need
or want for immediate delivery of products, and the social aspects of the shopping
experience.
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

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Internet 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.
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
Internet 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.

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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.
CURRENT SCENARIO OF ONLINE GROCERY SHOPPING INDUSTRY
The evolution of online grocery stores is still in its infancy in India. However,
purchasing grocery online is getting as popular as purchasing electronic gadgets
online. Analysts and researchers claim that huge sales of mobile devices like
smartphones and tablets is behind the booming online market. Nowadays, there is no
element of surprise in finding people ordering all they want to possess online. Online
grocery stores sell grocery of various brands to customers.
They sell groceries at very competitive rates and consumers have a second thought
when they are buying grocery from a local store. The user interface of an online
grocery website is designed in a user-friendly way allowing easy access to products
being purchased online. Sufficient discounts and online coupons are offered to attract
consumers who are looking to save some money.
However, the fact is that physical Grocery stores should be ready to face more
competition from online grocery stores in the near future. The only way local grocery
stores can sustain in the market in future is by turning online. Thus, a physical grocery
store can use the reputation & goodwill already earned from customers to their
advantage. The need for physical grocery stores turning online is inevitable and
irreversible.
The main reason behind businesses turning online is due to the fact that people are
getting busier than ever before. For these kind of customers, comfort means grocery

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items delivered on a weekly or monthly basis as per their needs at their door-steps.
They can even automate the list of items to be purchased from online grocery stores.
I do not think local stores should blame online stores for decrease in the volume of
their business and revenue. Instead, they should introduce specific plans for utilizing
the immense potential of online media & will have to introduce new marketing tactics
that will help them grow in the online marketplace. If e-mails & instant messaging
services can bring postal services to a standstill, then we can also expect that online
grocery stores will replace physical grocery stores in the future. However, it is still a
distant dream for people who cannot afford to buy a mobile device with Internet
access.
The boom in online grocery market is forcing brands to collaborate with online
retailers for finding ways to make it easy for consumers to buy grocery online.
As far as the current scenario is concerned, grocery stores should focus on getting
more & more business via online methods. However, this does not mean that they
would have to shut down the physical grocery store. The majority of revenue of
Grocery store owners should come via online methods.
Online grocery stores have paved the way for other local grocery stores to try latest in
shopping trends. Many of online grocery stores offers customers with free home
delivery, coupons, discounts & easy payment methods. No doubt, consumers will find
online grocery shopping as a more convenient way of shopping instead of going to a
physical grocery store.
MODELS OF E-COMMERCE:
Business-to-Business (B2B):
B2B e-commerce is simply defined as e-commerce between companies. This is the
type of e-commerce that deals with relationships between & among businesses. About
80% of e- commerce is of this type, & most experts predict that B2B e-commerce will
continue to grow faster than the B2C segment. Eg: indiamart.com,
eindiabusiness.com, tradeindia.com etc.

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Business-to-consumer (B2C):
Business-to-consumer e-commerce, or commerce between companies & consumers,
involves customers gathering information; purchasing physical goods (i.e., tangibles
such as books or consumer products) or information goods (or goods of electronic
material or digitized content, such as software, or e-books); &, for information goods,
receiving products over an electronic network.
It is the second largest & the earliest form of e-commerce. Its origins can be traced to
online retailing (or e-tailing). Thus, the more common B2C business models are the
online retailing companies such as flipkart.com amazon.com, snapdeal.com etc.
Business-to-Government (B2G):
Business-to-government e-commerce or B2G is generally defined as commerce
between companies & the public sector. It refers to the use of the Internet for public
procurement, licensing procedures, & other government-related operations. This kind
of e-commerce has two features: first, the public sector assumes a pilot/leading role in
establishing e-commerce; & second, it is assumed that the public sector has the
greatest need for making its procurement system more effective.
Web-based purchasing policies increase the transparency of the procurement process
(& reduce the risk of irregularities). To date, however, the size of the B2G ecommerce
market as a component of total e-commerce is insignificant, as government e-
procurement systems remain undeveloped.
Consumer-to-Consumer (C2C):
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers. This type of e-commerce is characterized by the growth of
electronic marketplaces & online auctions, particularly in vertical industries where
firms/businesses can bid for what they want from among multiple suppliers. It
perhaps has the greatest potential for developing new markets. Online auction site
eBay, Yahoo! Auctions are a couple of examples of C2C websites.

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Mobile Commerce in India:
Mobile is growing in India with more than 810 million subscribers across the country.
The advancement in terms of adoption of smart phones with 3G enabled services is
happening at a rapid pace. This of course has opened up the gates to mobile
advertising, mobile application development & mobile commerce in India. India is top
performing mobile advertising region in the whole of Asia.
The growth in mobile advertising globally is tremendous with ads served on a year-
on-year growth of 139%. With respect to some number crunching, more than 128
billion ads were served in 2013, 185 billion ads in 2014 & 232 billion ads in 2015
compared with 52 billion in 2011. In India, Mobile Commerce is still in the
development phase as the use of mobile phones for carrying out transactions is very
limited.
However, the development is taking place at a nice speed & in the coming years,
Mobile Commerce is most likely to make its presence feel as companies & businesses
have started understanding the benefits of Mobile Commerce. Some of the companies
have even incorporated this technology. Airtel, ICICI, Reliance are some of the
companies/businesses that are using this technology as their users are allowed to
make limited purchases from their phones.
For now, the users are mainly allowed to pay phone bills, utility bills, book movie
tickets, book travel tickets with their cell phones. However, more services will be
introduced in coming years. Security is one of the main concerns of Mobile
Commerce as it‟s very important to offer secure transactions & this is the reason why
Mobile Commerce is still in the development phase in India.
For now, users are mainly allowed to do Mobile Banking i.e. to access the bank
account with a cell phone in order to pay the utility bills. With the current rate of
development, users will be soon allowed to purchase products, advertise, to take part
in auctions & pay bills with the help of a cell phone, while they are on the move.

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FACTORS WITH RESPECT TO WOMEN IN ONLINE SHOPPING
Shopping has been an obsession of women across the globe. A new shop in the
neighborhood, a new shopping mall in the area, a new brand launched – women are
first to know & first to go. When it comes to shopping, women are more organized
(45% of women come to retail stores with shopping-lists as compared 29% of men),
regularized & they show some definite trends in their buying behaviors. A woman is
more likely to spend time in a retail store (29%) as compared to her male counterpart
(26%). When a woman visits a retail store or any physical retail store she will
consider a few important factors such as:
 How conveniently the store is located
 Behaviour of the staff
 Cleanliness (most of women are obsessed with it)
 Products put at an easy reach so that she can check the label, feel it (if
required) & physically compare it with a similar product from a different
manufacturer
 Overall aesthetic decoration of the store
 And most importantly – freebies & discounts available with the products
Naturally, the same woman when she would visit an online retail store will look for
these factors in her sub-conscious mind. She would love to get the same feeling as she
derives from the environment of her favorite retail store. She will unknowingly
demand these from your online shopping store. She would choose to stay & buy from
your online webstore if you can meet the following:
Save time: You should give her the navigational freedom & easy roam around
options in your store; give her instantly whatever she wants.
Get a better selection: Your product should be the best in the designated price
bracket.
Complete product details: Do not describe your products in single words; give as
much detail as possible.
Better value/offer: Your freebies should be 'useful' enough & the discount should be
noticeable.

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Logistics: You must deliver the product right at her doorsteps & nowhere else.
Flexible return policy: Many times a woman takes a second opinion & you should
respect this nature. Be flexible if she asks you to replace what she has bought.
ONLINE SHOPPING IN INDIA:
The Indian economy is slated to grow by upward of 7% annually in the next few years
which is among the highest rates of any big emerging economy. And quite a lot of this
growth would be on the back of domestic consumption of goods & services.
E-commerce is emerging as a great level given that organized retail is still not
ubiquitous across the length & breadth of the country with large retail chains making
up less than 12% of the market.
E-commerce is helping people in smaller towns in India access quality products &
services similar to what people in the larger cities have access to. It‟s being forecast
that close to 65% of online shoppers would come from beyond the top eight large
cities by end of this year.
Increasing internet penetration has helped to expand the potential customer pool.
Internet penetration is only about 12% users as against about 81% in the US & 36% in
China. However this number continues to rise at a consistent pace because of falling
prices for broadband connections.
Indians are also increasingly taking to mobile devices for not only search but
shopping as well. The number of smartphone users is rapidly increasing in India &
with 4G services already taking off it‟s expected to get even more people going
online. There are currently about 900 million mobile subscribers & this number is
expected to touch 1.4 billion by 2015. Of these about 29 million are estimated to be
active mobile internet users. More importantly, 22% users indicated intent to buy
products through their mobile phones as against the current 5% and this number is
expected to only increase in the next two to three years.
Innovation is helping e-commerce companies break the inertia for online shopping by
offering benefits to customers not traditionally available in a brick & mortar store.
Business models include no question asked return policies ranging from 7 days to 31
days, free product deliveries and the industry dynamics changing “cash on delivery”

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model. The last innovation has really help unlock the potential as people can now
order products & pay when they get physical delivery of the product.
This has been a tremendous success because Indians are still reluctant to give their
credit/debit card details online & want to have the psychological comfort that they
would actually get the product once payment has been made. These innovations have
led to further innovations downstream as ancillary businesses are developing to
support these initiatives. Some companies have begun to develop support mechanisms
for the entire cash on delivery model & are trying to reach the far flung corners of
India, including in the interiors where traditional logistics companies are still not
completely present. The logistics companies are also shoring up their act & have
started to build specific verticals and expertise to address the requirements of e-
commerce companies.
Currently only about 12 million people do online transactions out of an approximate
population of 200 million credit & debit card holders. However the latest industry
report by First Data Corporation 7 ICICI Merchant Services indicate that there are
about 155 million users that are “ready‟ for e-commerce.
More importantly the report indicates that urban Indian consumers are now confident
enough to make online purchases of up to US$500 as against US$50-100 in the recent
past. So not only are the numbers of online shoppers projected to increase but there
has been a real increase in the total value being spent online.
So what happens next for an industry which is retailing everything online from
flowers to baby products to books, coupons, apparels, music & electronic items to
even houses, cars & jewelry? While this e-commerce play is not like the earlier dot
com bubble, there are clear signs that order might be coming in amidst all the noise
that is out there.
First a slow but sure consolidation is starting to take place in the industry. Experts say
that over the next 10-16 months there would be a couple of multi-product generalists
who would be successful along with a leader in single product category.
Second, Venture Capitalists are starting to be choosy about which business to invest
in, basing their decisions on performance as opposed to future predictions. Valuations
which went through the roof are now returning to normal levels.

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Despite all of this, it‟s been a very impressive story so far. The poster child of the
Indian ecommerce industry is flipkart.com, a 4 year old venture which modeled itself
after amazon.com & is already commanding a valuation of US$ 500 million & is
targeting revenues of US$1 billion in the next two to three years. All of this has
caught the attention of amazon.com which entered the market in February 2013. It
came in through junglee.com, a price comparison site & is already amongst the top 10
sites in the country.
There is huge demand for top-notch professional grade web 2.0 consultancy and
development. Very few companies have a long term vision around customer
acquisition, retention & constant conversations. A lot more can be done in
understanding the linkages between design & functionality based on user experience
& social integration. However to succeed in a tough market like India your company
needs to be open to long term strategic partnerships rather than an upfront “pay for
services” model. The upside would be worth its weight. India has more than 4,000
running e-commerce centers, according to research conducted by eBay India for its
2014 census. Indian web is clouded with e-commerce (B2B, B2C, B2G, and C2C
type business models) startups & increasing like mushrooms on lawn.
India - An upcoming super power has more than 100 million internet users which is
keep on growing by introduction of 2G and 3G. They want to be online always by
any internet enabled gadgets. People are moving from street bargaining to online web
bargaining. The common Indian Mentality of “seeing and believing” or “how it will
look” is changing by introducing some creative business models like “cash on
delivery” by major e-commerce sites.

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ONLINE GROCERY SHOPPING
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 &
available on your smartphone, tablet, or computer. Just think: no more long 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 & making a service that may have once felt luxurious into an
everyday convenience.
Ordering Food Online
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, & 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.
ADVANTAGES OF ONLINE GROCERY SHOPPING:
 There are many advantages of purchasing grocery online shopping as opposed
to shopping from a traditional grocery store:
 The primary benefit of online grocery shopping is convenience. By ordering
online, one can quickly search for the products the customer needs and order
them without having to physically walk through expansive aisles.
 It also saves travel expenses and time going to the grocery store. Considering
the wide availability of the Internet.
 It also means grocery shopping can be done from remote locations or in the
middle of doing other tasks. For instance, using an online grocery store can
allow a person to do all grocery shopping during the lunch break at work.

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 It is also very useful for those without a car or who may be physically unable
to move around easily, since the food is delivered right to their doors.
 Customers can shop anytime they want, at their own convenience, 24 hours a
day, 7 days a week.
 Customers can automate their grocery deliveries, so that frequently purchased
grocery items are shipped to them on a regular basis.
 The use of online-based grocery stores is increasing in popularity as more &
more people become comfortable with using the Internet to make purchases.
DISADVANTAGES OF ONLINE GROCERY SHOPPING:
 Perhaps the largest disadvantages of shopping online are that it costs extra
money, since food must be delivered, & that the food ordered is not obtained
immediately.
 If someone were making a certain recipe & discovered he needed an additional
ingredient, he would probably not be able to order it online & get it quickly
enough to finish his dish. In the same way, it forces a person to plan his food
buying in advance of when he will need it - if delivery will take a day or two,
a person needs to plan to have an extra day or two of essential foods available
before he runs out.
 Another disadvantage is that online shopping forces the customer to be home
during a certain period to collect the food when it is delivered.
 Also, online grocery stores will often only cover specific delivery areas.

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HOW DOES ONLINE GROCERY SHOPPING WORK?
Following are the basic parameter that determines the working of online grocery
shopping.
Creating the Website:
The most important part of online grocery shopping is the website itself. The website
should have a complete list of groceries that are able to be delivered as well as the
prices for each item.
This website should then have a "shopping cart" where a user can add items to a list
of things to be ordered, as well as view & edit items that she is planning to purchase.
Finally, this website should have the ability for the user to enter her address & pay for
the order.
Filling the Order and Shipping:
The next step is to take the submitted order & use it to collect & deliver the items on
the list. In general, fulfillment of the grocery order needs to be done manually by a
stockboy or other employee.
This process can be made easier by having a well-organized room where the products
can be easily & efficiently located. The stock person should also check to make sure
that the items placed in the order match the list that the user created.
Then, once the order has been compiled, the collection of food needs to be placed in a
vehicle & delivered to the customer.
Restocking and Processing Payments:
Clearly, it is critical to ensure that all the items listed on the website are in stock &
able to be shipped. As a result, the stock room needs to be carefully checked to ensure
inventory levels are sufficient.
Also, it is important to have the ability to obtain & process payments made by credit
card. Also, in order to encourage repeat customers, it can be helpful to require
customers to have a user name, which would allow information to be stored. This can
also help create "suggested" carts of food items they commonly purchase.

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CHAPTER 2
THEORETICAL BACKGROUND OF THE STUDY
A grocery store is a retail store that primarily sells food. A grocer is a bulk seller
of food. Grocery stores often offer non-perishable food, with some also having fresh
produce, butchers, delis, & bakeries. Large grocery stores that stock significant
amounts of non-food products, such as clothing & household items, are called
supermarkets. Some large supermarkets also include a pharmacy & an electronics
section.
In the United States, Canada, & United Kingdom, supermarkets & convenience stores
are sometimes described as grocery businesses, or simply grocers. Small grocery
stores that mainly sell fruits & vegetables are known as produce markets or
greengrocers & small grocery stores that predominantly sell prepared food, such as
candy & snacks, are known as convenience stores or delicatessens.
Some groceries specialize in the foods of a certain nationality or culture, such
as Italian, Polish, oriental or Middle-Eastern. These stores are known as ethnic
markets & may also serve as gathering places for immigrants. In many cases, the wide
range of products carried by larger supermarkets has reduced the need for such
specialty stores. The variety & availability of food is no longer restricted by the
diversity of locally grown food or the limitations of the local growing season.
Internet is changing the way consumers shop and buy goods & services, & has rapidly
evolved into a global phenomenon. Many companies have started using the Internet
with the aim of cutting marketing costs, thereby reducing the price of their products &
services in order to stay ahead in highly competitive markets.
Companies also use the Internet to convey communicates & disseminate information,
to sell the product, to take feedback & 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 & 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.

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In addition to the tremendous potential of the E-commerce market, the Internet
provides a unique opportunity for companies to more efficiently reach existing &
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 & practitioners of electronic commerce
constantly strive to gain an improved insight into consumer behaviour in cyberspace.
Along with the development of E-retailing, researchers continue to explain E-
consumers behaviour from different perspectives. Many of their studies have posited
new emergent factors or assumptions which are based on the traditional models of
consumer behaviour, & then examine their validity in the Internet context.
Groceries are different from many other products, such as music & books that are
commonly purchased online. Many grocery products are perishable & therefore time-
sensitive in terms of their delivery needs. In addition, groceries are a replacement
product, i.e., the same basket of products is more-or-less purchased on a regular basis.
Finally, groceries are high-touch items, meaning that consumers like to inspect the
quality of items they are purchasing.
Five years ago online grocery sales were only $85 million however, this growing
market had attracted an number of "pure-plays" - companies that focused exclusively
on selling through the Internet, & attempted to replace traditional bricks-and-mortar
supermarkets. Most of these pure-plays failed spectacularly. Today, traditional bricks-
and-mortars stores are increasingly entering the online market in an attempt to
leverage both brand awareness & create distribution efficiencies.
Online security & privacy are also of concern to consumers. In particular, security
issues generally revolve around the transfer of personal & financial information (for
example, addresses, telephone numbers, credit card numbers, etc.) over the Internet.
Another privacy concern relates to the use of online consumer demographic and taste-
related data. Online stores gather this information & can use it to target costumers or
sell to marketing firms for marketing analysis.

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Online grocery services meet a number of consumer needs including providing
products for niche markets or helping the time starved consumer shop for the
mundane weekly groceries. By delivering products to consumers' homes, the
homebound aged & handicapped can participate in the shopping experience.
Even though there has been a great decline in the number of pure-play online stores,
there appears to be a solid market for shopping online.
The major business model that is working today requires the support of the
established bricks-and-mortar supermarkets. This model is effective as it creates
distribution efficiencies & leverages reputation, which is an important consideration
for consumers in light of the perishable nature of many grocery products.

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Bigmamma.in
Bigmamma.in is the online grocery startup present in Greater Noida with over 5000+
products and lots of varieties in the catalogue. Get everything customer are looking
for, starting from Vegtables & Fruits, Grocery & Staples, Dairy Products, Beverages,
Package Foods, personal and household needs and much more at one place.
Also enjoy our on time delivery every time, best quality of products, cash on delivery
option and an unmatchable service.
Our Mission–
Our mission is to position BigMamma as the online service leader. We At Bigmamma
aim to deliver smiles with best-in-rank service, unbelievable quality and an experience
that stays with customer.
Our Vision –
We intend to serve our customer with the best grocery shopping online experience from
beginning to end, with the best and easy to follow instruction and secure payment
method.
Philosophy –
At Bigmamma our first priority is to provide the best quality product and fast delivery
to function the best supermarket where Shopping and Working both are always best.

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COMPETITORS:
BIGBASKET.COM
What is BigBasket.com
Big Basket is India‟s largest online food and grocery store, with over 10,000 products
& over 1000 brands. Big Basket sells products in categories such as fresh fruits &
vegetables, grocery & staples, meats, personal care, & home & kitchen products.
BigBasket operates in cities including Bangalore, NCR, Mumbai, Hyderabad and
Pune.

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BigBasket.com (Innovative Retail Concepts Private Limited) is India‟s largest online
food and grocery store. With over 10,000 products and over a 1000 brands in our
catalogue you will find everything you are looking for.
Right from fresh Fruits & Vegetables, Rice & Dals, Spices & Seasonings to Packaged
products, Beverages, Personal care products, Meats we have it all. Choose from a
wide range of options in every category, exclusively handpicked to help you find the
best quality available at the lowest prices. Select a time slot for delivery & your order
will be delivered right to your doorstep, anywhere in Bangalore, Mumbai, Hyderabad,
Pune, Chennai & Delhi.
You can pay online using your debit / credit card or by cash / Sodexho on delivery.
We guarantee on time delivery, & the best quality!
Why should I use BigBasket.com?
Bigbasket.com allows you to walk away from the drudgery of grocery shopping &
welcome an easy relaxed way of browsing & shopping for groceries. Discover new
products & shop for all your food & grocery needs from the comfort of your home or
office. No more getting stuck in traffic jams, paying for parking, standing in long
queues & carrying heavy bags – get everything you need, when you need, right at
your doorstep. Food shopping online is now easy as every product on your monthly
shopping list, is now available online at BigBasket.com, India‟s best online grocery
store.

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ZOPNOW.COM
Zopnow.com, an online retail store exclusively aims to catergrocery & FMCG need of
people launched its service in Bangalore. Zopnow with punch line “Be Lazy, Buy
Easy” plans to deliver grocery items at consumer‟s doorstep in less than 3 hours or at
a predefined time specified by the customer.
However, currently zopnow‟s is offering 2000+ products to some selected areas of
south Bangalore. Zop now is founded by serial entrepreneur B.K Birla and Mukesh
Singh, erstwhile CTO, Makemytrip.
According to company website, it wants to build a customer centric online store that
will leverage the hybrid model of online, call center, mobile application and physical
touch. Zopnow claims to deliver great customer experience by providing customers, a
convenient way to shop & in the process cut down the time at the checkout counter,
traffic & parking. At present Zopnow offers cash on delivery (COD) option & are in
the process of adding card, debit card, Sodexho & Ticket Restaurant vouchers,
however Sodexho & Ticket Restaurant vouchers would be applicable only for food
items. It offers free shipment for minimum order value of INR 500 and above,
however shipping cost of INR 30 is added to all shipment below INR 500

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YOUMART.IN
YouMart is a brand of Ujjivan Enterprises Pvt Ltd. & was formed on 13th December
2012.
YouMart is a strong initiative in the Online Supermarket space & embarked on a
journey to make it the most preferred Online Grocery Store in India. Presently they
operate in Bangalore, & will expand the operations to other metros in India. Their
product portfolio includes everything our customer needs, from Groceries & Staples,
fresh Vegetables & Fruits, Personal care products, Baby care products, Cleaning items
to Stationeries & other Home needs.
YouMart is a strong initiative in the Online Supermarket space & continues to thrive
hard to make it the most preferred Online Grocery Store in India. Today they serve
only in Bangalore but will soon move to other cities in India. They keep everything
our customer needs from groceries & staples, fresh vegetables & fruits, personal care
products, baby care products, cleaning items to stationeries & other home needs. They
provide all easy payment options such as cash & card on delivery, sodexo vouchers,
debit card & credit card online payment through secured & trusted payment gateway.
Quality guaranteed - Quality in product and service is paramount for YouMart.
Vegetables & fruits are handpicked for you & we guarantee quality & on-time
delivery every time. YouFarm is the in house division of YouMart & they carefully
procure & pack the best quality pulses, dals, rice, vegetables & fruits at regular prices.
Working with a four-pronged approach:
Innovation
Respect for Individuals
Customer satisfaction
Striving for excellence

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Policies & Principles:
Open Door Policy - Managers' doors are open to employees at all levels.
Sundown Rule - Answering employee, customer, & supplier questions on the
same day the questions are received.
Customer satisfaction - Capturing suggestions & ideas from the sales floor &
delivery front line.
Striving for excellence - Making eye contact, greeting, & offering help to
customers to whom we serve.
Servant Leadership - Leaders are in service to their team.
NATUREBASKET.COM
Godrej Nature‟s Basket is the retail venture of Godrej Group & is today India‟s
foremost retail destination for fine foods from across the world. Started in 2005 as a
single fresh food store, they have today morphed into a more than 35-store chain of
premium gourmet stores strategically located at high street locations in Mumbai,
Delhi/NCR, Pune, Hyderabad & Bangalore.
With the growing palate preference of the Indian consumers, they are ready to
embrace sophisticated & exotic tastes from around the world. They are travelling
more than ever before, & they take a bigger place on the world stage, they want to
explore everything it has to offer.
So they bring customer the very best in service, quality & of course, international
cuisine selection - a huge variety of delicious cheeses of all kinds from France &
Italy, fresh & spicy ingredients from Thailand, amazing handcrafted ham & salami
from Europe, oils & vinegars from the Mediterranean, most exotic & fresh organic
produce & a cellar that boasts of the world‟s best collection of wine & beer. In

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addition, they are powered by a team of noted food experts who search for the best &
newest food products from around the globe. To make your journey through this
gourmet destination even more mouth-watering, their uniquely knowledgeable &
passionate staff will answer any questions customers have, & can help them put
together a gift hamper or an expertly selected cheese or meat platter for your special
occasion.
The Gourmet retail chain boasts of stocking the best international & domestic wines,
cold cuts, meats, cheese, organic foods & a large variety of pastas, noodles,
beverages, exotic & rare ingredients, meals, sauces, preserves & packaged food from
around the world. Every item in the assortment is handpicked from the very best that
Europe, Australia, Asia & the US have to offer. It caters to the refined needs of up-
market urban consumers for irresistibly authentic world food & ingredients
Services provided by Naturebasket.com
 Home delivery for online & phone orders.
 Customised gifts and treats for all special occasions & festivals
 Gift vouchers
 Exotic meat & cheese platters
 In-store food consultants for advice on food tasting & pairing, wine tasting &
appreciation
 Delicious recipes from various cuisines available on naturesbasket.co.in

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CHAPTER 3
REVIEW OF LITERATURE
"India is among the fastest-growing markets and has been identified as one of
the significant potential markets for the company,"
Muralikrishnan B., country manager at eBay's India explains that Indian consumers
toward buying high margin products such as clothes & shoes as is the trend among
eBay shoppers in the West rather than electronic gadgets & books, which are the most
popular choices now but command lower profit margins & are less frequent
purchases.
He depicted that India's nascent e-commerce market, which till recently was largely
limited to people buying train, flight & 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 Techno park predicts a $70 billion annual market by 2020, up from
$12 billion now, which is just 0.05% of global online shopping. EBay itself estimates
India's online shopping market in 2014 will grow close to 100%.
“E-commerce: A boon for the current economic downturn”
First Data Corporation and ICICI Merchant Services, has laid down some facts that
ecommerce market in India had clocked close to Rs 70,000 crores by the end of 2016.
Even though there are less than 20 million internet users who are actually engaging in
e-commerce activities, there are about 150 million internet users in India or around 75
million households that are ready for e-commerce.
With entry & operational costs being comparatively low than the other countries like
US, the second half of 2015 and the beginning of the current calendar have seen the
launch of a good number of new e-commerce sites spanning across a variety of
businesses – women’s fashion, men’s fashion, shoes, followed by accessories,
groceries, sports, toys, home furnishings, jewellery, automotive, bicycles, electronics
& electrical equipment etc.

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“These businesses are difficult to turn into profitable ventures due to the low
margins and the logistics costs involved.”
Gaurav Saraf, director of Epiphany Ventures says that, the concept of online grocery
shopping faces the problem of turning their business into profitable ventures as the
concept is new in the market which leads to low margin along with low margin high
cost is involved when it comes to logistics. In addition to these problems the
perishable items such as fruits & vegetables have a short shelf life, if these items are
not delivered before the expiry of their shelf life it would could cause wastage & also
add up the cost. From the above comment a conclusion is arrived that these business
ventures have a very thin margin when it comes to business operations.
“Connecting the local kirana stores with the buyers while storing inventories on
the Cloud”
Vijay Singh, CEO & MD of aaramshop.com says that in order to reduce the cost to
their business operation they applied the concept of cloud computing, where it
connects the local kirana shops with the buyers. It enables the business to reduce the
inventory cost as all the inventories are handled by the local vendor.
Predicting online grocery buying intention: a comparison of the theory of
reasoned action and the theory of planned behaviour.
Torben Hansen, Jan Møller Jensen, Hans Stubbe Solgaard
This paper tests the ability of two consumer theories the theory of reasoned action &
the theory of planned behaviour in predicting consumer online grocery buying
intention. In addition, a comparison of the two theories is conducted. Data were
collected from two web-based surveys of Danish (n= 1222 ) & Swedish (n= 1038 )
consumers using self-administered questionnaires. These results suggest that the
theory of planned behavior (with the inclusion of a path from subjective norm to
attitude) provides the best fit to the data & explains the highest proportion of variation
in online grocery buying intention.

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“Create a work-life balance”
Vijay Singh, CEO & MD of aaramshop.com states that the concept of online grocery
shopping creates the work-life balance in urban areas where the urban couples are
busy in their work culture & cannot give time towards their daily life needs.
“It is a difficult venture and these challenges make investors more cautious while
evaluating such initiatives”
Singhal of SAIF Partners, explains that the it is difficult for the investor to invest in
these type of business where the market is extremely fragmented.
Such a venture can only survive on repeat purchases & that‟s what one needs to
target. If a company knows what it needs to stock, how much it needs to stock &
where it needs to deliver, the business will become simpler to manage and run. The
firm needs to find a strong value proposition & target market to survive the cut- throat
competition
The solution to the above problem stated can be that in order to survive in the market
the business should target the satisfied consumer to create repeat purchases. Also
inventory management should be applied to these organizations it will enable them to
what it need to stock, how much it needs to stock & where it needs to deliver, this will
allow to operates its business operation smoothly.
Key drivers for success for e-commerce
Reduction in operational cost as the entire business can be moved online, the need for
physical stores has become obsolete. Less infrastructural investment and associated
labour costs drives up the profit margin.
It is far easier & quicker to compare prices of goods online, equipping the customer
with the information to decide the right price or terms for themselves. With services
like COD, customers can trust the process of going online and purchasing.
Market penetration also becomes far more achievable with e-commerce; it is possible
for a merchant in Delhi & whole NCR to extend his reach to north-eastern cities or
even rural villages that are now connected by the online network.

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E-commerce facilitates shopping anytime, anywhere & for almost anything desired.
Busy consumers prefer this to the restrictions of when a mall/shop is open and the
need to physically travel to a shop. Online business takes shopping a step further by
taking itself to the customer creating conveniences of shopping anywhere and at
anytime.
In India, with the increasing propensity of social media, businesses have now begun
to engage their customers on social networking portals such as Facebook. These are
likely to be rapidly developing marketing channels for the future.
STATEMENT OF THE PROBLEM:
Indian organized retailing is under transition today, bringing a lot of changes in
format of retailing. In this regard measuring customer satisfaction in organized
“Reliance Fresh” outlets in NCR, preferences & experiences will be of use to shape
the retail out lets and their offerings. The changing attitude of consumers led them to
step forward from unorganized Kirana stores to the organized retailing formats.
OBJECTIVES OF THE STUDY:
 To study attitude of customers towards online 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.
 To determine the parameters for choosing the particular shopping centre for
purchase of grocery items.
 To determine whether online grocery shopping will be beneficial & on what
factors.

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SCOPE OF THE STUDY:
 To determine which factor influences the consumer to go for online shopping.
 To find out which feature of the website attracts the user to purchase the
product from the online shopping website.
 To find out the whether grocery online shopping is beneficial for the user.
 To analyse which factors influence the user to buy online grocery.
RESEARCH DESIGN AND METHODOLOGY:
The sources of data used in this project report are both primary and secondary data.
1. Primary data
Primary data consists of original information gathered from sample size of 200
respondents residing in National Capital Region of India.
2. Secondary data
Secondary data consists of information that already exists and that was collected in
the past for some other purposes.
DATA COLLECTION TOOL USED:
 Questionaire:
The data collection tool used for the research is “Questionaires” to get the
primary data for the empirical research on consumer preference on online
grocery shopping.
The Questionnaire which is attached in the next page consists of a number of
questions printed in a definite order on a form which the respondents read.
SAMPLE DESIGN:
 Size of Sample:
The sample size selected for the research is 200 in the area of NCR.

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 Parameters of Interests:
The major parameter of interest is the subgroup of people who are working
professional & web savvy having an experience in online shopping. The two
other subsidiary parameters of interest are:
The respondent should also have an experience grocery shopping.
And the female respondent who have an online shopping experience.
PLAN OF ANALYSIS:
The data will be tabulated. Simple Percentages technique will be used for calculation
to analyze the data & represented through graphs & charts.
LIMITATIONS OF THE STUDY:
 The first limitation caused during the market research was to find out the
respondent who shop online & are web savvy.
 The second limitation caused during the research was searching the women
respondents who shop grocery products along with the experience of online
shopping.
 Other limitation caused in the market research was that the research will only
study the consumer perception towards online grocery shopping & not the
dealers, wholesalers or retailers perception towards online shopping which
acts as an agent to the online retail industry to support its business operations.
CHAPTER SCHEME
Chapter 1 : Introduction
Chapter 2 : Profile of the Industry
Chapter 3 : Design of the dissertation
Chapter 4 : Data analysis & Interpretation
Chapter 5 : Summary of Findings, Conclusion & suggestion
Chapter 6: Annexure
 Questionnaire
 Bibliography.

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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Table 4.1, Table showing the Age of the respondents
Age Group No of respondents Percentage
18-24 70 35%
25-30 22 11%
>30 108 54%
Total 200 100%
Analysis:
 54% of the respondents are of the age more than 30 years.
 35% of the respondents are of the age group of 18 years & 24 years.
 11% of the respondents are of the age group of 25 years & 30 years.
Chart 4.1, Chart showing the Age of the respondents
Interpretation:
The above chart we can infer that most of respondents belong to age of above 30
years. And few of the respondents belong to the age group of 18– 24 years. The
respondents who belongs to the age group of above 30 years.
22
No of respondents
>30 108
25-30
18-24 70
0 20 40 60 80 100 120

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Table 4.2, Table showing the Gender of the Respondents (Gender ratio)
Gender No of respondents Percentage
Male 87 44%
Female 113 56%
Total 200 100%
Analysis:
 From the above table we can analyze that 45% respondents are male
 56% of respondents are female.
Chart 4.2, Chart showing the Gender of the Respondents (Gender ratio)
Interpretation:
From the above figure it can be infered that majority of the respondents are female
and few of them are male. This is because most of the grocery shopping is done by the
females. Even male respondents also actively doing online shopping.
No of respondents
120 113
100 87
80
60
40
20
0
Male Female

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Table 4.3, Table showing the occupation of the respondents
Occupation No of the respondents Percentage
Student 42 21%
Service 93 46%
Business 38 19%
House hold 27 14%
Total 200 100%
Analysis:
 From the above table we can analyse that 46% of the respondents are in
service sector.
 21% of the respondents are students.
 19% of the respondents are business holders.
 14% of the respondents are households.
Chart 4.3, Chart showing the Occupation level of the respondents
Interpretation:
From the above chart it can be inferred that majority of the respondents are
from service sector and majority of the students respondents also doing online
shopping.
Student Service Business House hold
14%
21%
19%
46%

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Table 4.4,Table showing whether the respondents use the internet or not.
Attributes No of respondents Percentage
Yes 200 100%
No 0 0%
TOTAL 200 100%
Analysis:
 From the above table we can analyse that 100% of the respondents use
internet. Today it became common that every one has accessing to the internet
Chart 4.4, Chart showing whether the respondents use the internet or not.
Interpretation:
The above chart shows all the respondents use internet who are educated which
shows that all the respondents have the highest degree of buying grocery online since
they have access to internet.
250
200
200
150
100
No of
respondents
50
0
0
Yes No

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Table 4.5, Table showing where the respondents have access to the internet
Home 117 58%
Office 75 38%
Any other 8 4%
Total 200 100%
Analysis:
 From the above table we can analyse that 58% of the respondents have access
to internet at home
 38% of respondents have access to the internet at office.
 8% of the respondents have access to internet at college.
Chart 4.5, Chart showing where the respondents have access to the internet
Interpretation:
From the above chart we can infer that majority of the respondents have access to the
internet at home, & most of the respondents who are working they are accessing to
the internet from office, few of the respondents have access to the internet at college.
No of respondents
140
120
100
80
60
40
20
0
117
75
8
Home Office Any other

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Table 4.6, Table showing how many times per week do respondents go
online (email, internet, facebook)
1-2 Times/day 42 21%
3-4 Times/day 70 35%
5-6Times/day 31 15%
Daily 57 29%
Total 200 100%
Analysis:
 35% of the respondents said that they go online 3-4 times per day in a week.
 29% of the respondents said that they go online daily.
 21% of the respondents said that they go online 1-2 times per day in a week
 15% of the respondents said that they go online 5-6 times per day in a week
Chart 4.6, Chart showing how many times per week do respondents go
online (email, internet, facebook)?
Interpretation:
From the above chart it can be inferred that majority of the respondents go online 3-4
times in a day, and few of the respondents go online 5-6 times in a day. And most of
the respondents uses facebook, email, internet on daily basis.
1-2 Times/day 3-4 Times/day
5-6Times/day Daily
29% 21%
15%

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Table 4.7, Table showing whether the respondents have ever purchased anything
online or not
Yes 200 100%
No 00 0%
Total 200 100%
Analysis:
 100% of the respondents said that they have purchased products by online,
 All 100% of the respondents actively shopping through online.
Chart 4.7, Chart showing whether the respondents have everpurchased
anything online or not
Interpretation:
From the above chart it can be inferred that majority of the respondents go far online
purchasing. All 200 respondents are shop online.
No of respondents
No 0
Yes 200
0 50 100 150 200 250

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Table 4.8, Table showing which item the respondents shop online.
Apparels 54 27%
Books 23 11%
Electronics 87 44%
Food 36 18%
Any other 0 0%
Total 200 100%
Analysis:
 44% of the respondents said that they shop electronics items online.
 27% of the respondents said that they shop apparels online.
 18% of the respondents said that they shop food online.
 11% of the respondents said that they shop books online.

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Chart 4.8, Chart showing which item the respondents shop online
Interpretation:
The above chart depicts that electronics items has the highest number of transaction in
online shopping, & another important thing is most of the respondents buying the
food from online sellers. Apparels is the second most item sold in the online
shopping, which are more preferred by the female respondent, along with food items
etc.
No of respondents
Any other 0
Food 36
Electronics 87
Books 23
Apparels 54
0 20 40 60 80 100

MONIRBA Page 49
Table 4.9, Table showing the respondents have ever purchased groceries online
via internet or not.
Yes 144 72%
No 56 28%
Total 200 100%
Analysis:
 The above table shows that 72% of the respondents have purchased groceries
online.
 56% of the respondents never do their grocery shopping online.

MONIRBA Page 50
No of respondents
No
Yes
0 20 40 60 80 100 120 140 160
Chart 4.9, Chart showing the respondents have everpurchased groceries online
via internet or not.
56
144
Interpretation:
From the above chart we can infer that majority of the respondents have purchased
groceries online. In 200 respondents 144 respondents have purchased groceries
online, & few of the respondents never do their grocery shopping online.

MONIRBA Page 51
Table 4.10, Table showing from which website the respondents do purchases the
groceries.
Websites No of respondents Percentage
Bigbasket.com 93 46%
ZopNow.com 49 24%
Youmart.in 33 17%
Bigmamma.in 25 13%
Others 00 0%
Total 200 100%
Analysis:
 46% of the respondents have purchases the groceries from Bigbasket.com
 24% of the respondents purchases the groceries from ZopNow.com
 17% of the respondents purchases the groceries from Youmart.in
 13% of the respondents purchases the groceries from Bigmamma.in.

MONIRBA Page 52
Chart 4.10, Chart showing from which website the respondents do purchases the
groceries.
Interpretation:
From the above chart we can infer that majority of the respondents purchases
groceries from bigbasket.com, where most of the respondents purchase the groceries
from Zopnow, Youmart.in and few of them purchases from Bigmamma.in.
Others 0
Bigmamma.in 25
Youmart.in 33
No of respondents
ZopNow.com 49
Bigbasket.com 93
0 20 40 60 80 100

MONIRBA Page 53
Table 4.11, Table showing how often the respondents do their grocery shopping
online
Period No of
respondents
Percentage
Weekly 76 38%
Monthly 28 14%
Only for special occasion 40 20%
I never do my grocery shopping
online
56 28%
Total 200 100%
Analysis:
 38% of the respondent said that they shop groceries online weekly.
 28% of the respondent said that they do not shop groceries online.
 20% of the respondent said that they shop groceries online only in special
occasion.
 14% of the respondent said that they shop groceries online monthly.

MONIRBA Page 54
Chart 4.11, Chart showing how often the respondents do their grocery shopping
online
Interpretation:
From the above chart we can infer that majority of the respondents shop groceries
weekly, out of 200 respondents 76 respondents does grocery shopping online and few
of the respondents shop groceries online in a month.
80 76
70
60 56
50
40
40
30
28 Series1
20
10
0
Weekly Monthly Only for special I never do my
occasion grocery shopping
online

MONIRBA Page 55
Table 4.12, Table showing how much the respondents spend monthly on online
groceries shopping (in Rs)
Particular‟s No of respondents Percentage
500-1000 92 46%
1000-1500 64 32%
1500-2500 35 17%
3000& above 09 5%
Total 200 100%
Analysis:
 46% of the respondents said that they spend monthly Rs 500-1000 on online
grocery shopping.
grocery shopping.
grocery shopping.
 5% of the respondents said that they spend monthly more than 3000 Rs on
online grocery shopping.

MONIRBA Page 56
Chart 4.12, Chart showing how much the respondents spend monthly on online
groceries shopping (in Rs)
Interpretation:
The money spend in online shopping is ranging from INR 500-1000, which indicates
the users are willing to pay more price when there is premium quality products such
as electronics, branded apparels, good quality food etc. And majority of the
respondents spent more than 500 to 1000 Rs on online grocery shopping & few of
the respondents spent more than 3000 Rs on online grocery shopping.
No of respondents
100
90
80
70
60
50
40
30
20
10
0
92
64
35
9
500-1000 1000-1500 1500-2500 3000& above

MONIRBA Page 57
Table 4.13, Table showing the maximum delivery fee the respondents would able
to pay.
Particular‟s No of respondents Percentage
Rs0 75 37%
Rs50-100 90 45%
Rs100-150 27 14%
Rs150& above 08 4%
Total 200 100%
Analysis:
 45% of the respondents said that they are ready to pay Rs 50-100 delivery
charge.
 37% of the respondents said that they don‟t pay any delivery charges.
 14% of the respondents said that they ready to pay 100 to 150 Rs delivery
charge.
 4% of the respondents said that they are ready to pay more than 150 Rs of
delivery charge

MONIRBA Page 58
Chart 4.13, Chart shows the maximum delivery fee the respondents would able
to pay
Interpretation:
From the above chart we can infer that majority of the respondent ready to pay Rs
100-150 delivery charges, it shows that out of 200 respondents 90 respondents ready
to pay 100 & below 150 and 37% of the respondents don’t want to pay any delivery
charges, & out of 200 respondents only 8 respondents ready to pay more than Rs150
delivery charges.
No of respondents
Rs150& above 8
Rs100-150 27
Rs50-100 90
Rs0 75
0 20 40 60 80 100

MONIRBA Page 59
Table 4.14, Table showing how likely the respondents would buy groceries online
and have them delivered, if there were an annual membership fee but not
delivery charge?
Very likely 26 13%
Likely 34 17%
Neither likely nor unlikely 28 14%
Unlikely 105 52%
Very unlikely 7 4%
Total 200 100%
Analysis:
 52% of the respondents said that they don‟t want to pay annual membership
fee.
 17% of the respondents said that they are likely agree to pay annual
membership fee.
 14% of the respondents said that they are neither likely nor unlikely agree to
pay annual membership fee.
 13% of the respondents said that they are very likely agree to pay annual
membership fee.
 4% of the respondents said that they are completely disagree to pay annual
membership fee.

MONIRBA Page 60
Chart 4.14, Chart shows how likely the respondents would buy groceries
online and have them delivered, if there were an annual membership fee but
not delivery charge
Interpretation:
From the above chart it can be inferred that majority of the respondents are not agree
to pay annual membership fee, and only 13% of the total respondents very likely
agree to pay annual membership fee.
No of respondents
120
105
100
80
60
40 34
26 28
20
7
0
Very likely Likely Neither likely
nor unlikely
Unlikely Very unlikely

MONIRBA Page 61
Table 4.15, Table showing the maximum membership fee that the respondents
would be willing to pay.
Membership fee (In Rs) No of respondents Percentage
None 37 18%
1000 89 44%
1500 43 22%
2000 & above 31 16%
Total 200 100%
Analysis:
 44% of the respondents said that they are ready to pay Rs1000 annual
membership fee
 22% of the respondents said that they are ready to pay Rs1500 annual
membership fee
 18% of the respondents said that they are not ready to pay any annual
membership fee
 16% of the respondents said that they are ready to pay above Rs2000 annual
membership fee

MONIRBA Page 62
Chart 4.15, Chart showing the maximum membership fee that the respondents
would be willing to pay.
Interpretation:
The above chart depicts that the majority of the respondent agree to pay Rs 1000 for
annual membership fee, and few of the respondents agree to pay more than Rs 2000
for annual membership fee for online grocery shopping.
No of respondents
2000 & above 31
1500 43
1000 89
None 37
0 20 40 60 80 100

MONIRBA Page 63
Table 4.16, Table shows how important are each of the following factors relative
to the respondent for the consideration of Purchasing groceries online instead of
going to the store?
1. Very important
2. Somewhat important
3. Neither important nor unimportant
4. Somewhat unimportant
5. Very unimportant
Attributes 1 2 3 4 5
Saving time 114 65 21 0 0
Better prices 68 81 23 28 0
Easy to order 54 86 57 3 0
Product
variety
98 85 17 0 0
Analysis:
 The above graph depicts that user respondent think that online shopping will
be beneficial as it will save their time to shop for grocery items.
 The next relating aspect why consumer will shop grocery online as it is very
easy to order any product, allow the user to avoid long queues resulting in
reduction in time spent in shopping.
 The other factors why online grocery shopping will be beneficial as it will
allow the user to shop all the grocery at a particular place with discounts &
offers.

MONIRBA Page 64
Chart 4.16.1, Chart shows how saving time is important factors relative to the
respondent for the consideration of Purchasing groceries online instead of going
to the store
Interpretation:
The above graph depicts that user respondent think that online shopping will be
beneficial as it will save their time to shop for grocery items
57% of the respondent saving time is very important & 11% of the respondents
thinking saving time is not so important
Saving time
150
114
100
65
50
21
0 0
0
1 2 3 4 5

MONIRBA Page 65
Chart 4.16.2, Chart shows how price are important factors relative to the
respondent for the consideration of Purchasing groceries online instead of going
to the store
Interpretation:
The above chart depicts that majority of the respondents said that price are likely
important for shopping online, out of 200 respondents 81 respondents said better
prices are likely important.
Chart 4.16.3, Chart shows how easy to order feature is important factors
relative to the respondent for the consideration of Purchasing groceries online
instead of going to the store
Interpretation:
From the above it can be inferred that 28% of the respondents said that easy to order
feature neither important nor important, & majority that is 43% of the respondents
said easy to order feature is likely important.
100
80
60
40
20
0
Better prices
81
68
23 28
0
1 2 3 4 5
Easy to order2%
0%
28% 27%
1
2
3
4
5

MONIRBA Page 66
Product variety
120
100
80
60
40
20
0
1 2 3 4 5
Chart 4.16.4, Chart shows how product variety is important factors relative to
the respondent for the consideration of Purchasing groceries online instead of
going to the store
98
85
17
0 0
Interpretation:
 The other factors why online grocery shopping will be beneficial as it will
allow the user to shop all the grocery at a particular place with discounts and
offers. 98 respondents are said that having product variety is very important.

MONIRBA Page 67
Table 4.17, Table showing where do the respondents shop grocery items if not in
online
Local kirana stores 51 25%
Ration shop 9 4%
Sabzimandi 97 49%
Supermarket 43 22%
Total 200 100%
Analysis:
 49% of the respondents said that they do their grocery shopping in subzimandi
 25% of the respondents said that they do their grocery shopping in local kirana
stores.
 22% of the respondents said that they do their grocery shopping in super
markets.
 4% of the respondents said that they do their grocery shopping in ration shops.

MONIRBA Page 68
Chart 4.17, Chart showing where do the respondents shop grocery items if not in
online
Interpretation:
 From the above graph we can determine that user choose subzimandi & local
kirana stores for shopping grocery items as they are proximate to their home.
 The above graph depicts that, when it comes to price factor people prefer to
shop from supermarket & ration shop as these shopping centres offers
grocery items at wholesale prices.
 User prefers to shop from supermarket when it comes to the quality of the
product.
 When it comes to availability of variety of grocery items offered at a particular
centre, user prefer supermarket centre of shopping.
 User prefer supermarket to shop grocery items as they offer more discounts &
offers compared to the other shopping centres.
9
No of respondents
Supermarket 43
Sabzimandi 97
Ration shop
Local kirana stores 51
0 20 40 60 80 100 120

MONIRBA Page 69
Table 4.18, Table showing when do the respondents feel the need to shop online.
When I need home delivery 71 35%
When I want something unique and special 29 14%
When I need to compare prices 21 11%
When I don’t have the time to find things 79 40%
Any others 00 0%
Total 200 100%
Analysis:
 45% of the respondents said that they do their online grocery shopping when
they do not have time to find things in different market.
they need home delivery.
they want something unique.
they need to compare prices.

MONIRBA Page 70
Chart 4.18, Chart showing When do the respondents feel the need to shop online.
Interpretation:
From the above we can depict the factor which motivates the respondent to shop
online is when they need home delivery.
The other factor which motivates to shop online when they compare prices of
different products at a same place.
The above graph also determines that people shop online when they don‟t have the
time to find things in the market for the product to be purchased.
Also respondent shop online when they want some unique & special product which
they cannot find in the offline market.
0%
40% 35%
When I need home
delivery
When I want something
unique and special
When I need to compare
prices
11%
When I don’t have the
time to find things
any others

MONIRBA Page 71
Table 4.19, Table showing the features in online shopping website attracts the
respondents
The design of a website 14 7%
Discounts offered 54 27%
Advertisement 30 15%
Variety 102 51%
Others 00 0%
Total 200 100%
Analysis:
 51% of the respondents said that variety feature attracted them to shop grocery
through online.
 27% of the respondent said that discount offered feature attracted them to
shop grocery by online.
 15% of the respondents said that advertisement attract them to shop online.
 7% of the respondents said that design of the website attract them to shop
groceries online.

MONIRBA Page 72
Chart 4.19, Chart showing what features in online shopping website attracts the
respondents.
Interpretation:
 From the above diagram we can determine that people prefer online shopping
when discounts offers are offered to them.
 The other factor that motivates the majority of respondents to shop online is
when the product they purchase is of value of money.
 Also the design of website along with the different advertisement promotion
motivates the user to shop online
No of respondents
Others 0
Variety 102
Advertisement 30
Discounts offered 54
The design of a website 14
0 20 40 60 80 100 120

MONIRBA Page 73
Table 4.20, Table showing the respondents issues regarding online shopping
No guarantee 38 19%
Too much clutter 13 6%
Security issue 117 59%
Physical examination 32 16%
Total 200 100%
Analysis:
 59% of the respondents are having security issue in online grocery shopping
 19% of the respondents are having no guarantee issue in online grocery
shopping
 16% of the respondents are having physical examination issues in online
grocery shopping
 6% of the respondents are having clutter of the website issue in online grocery
shopping.

MONIRBA Page 74
No of respondents
140
120
100
80
60
40
20
0
No guarantee Too much
clutter
Security issue Physical
examination
Chart 4.20, Chart showing the respondents issues regarding online shopping
117
32
38
13
Interpretation:
The above data determines the user to shop online is the security issue, which consists
of issues like phishing, hacking of accounts etc.
The other factor which demotivates the respondents is physical examination that is the
tangibility of the product is the important issue when it comes to online shopping &
few of the respondents have clutter of the website.

MONIRBA Page 75
Table 4.21, Table showing do the respondents think buying groceries online is
beneficial
yes 138 69%
No 62 31%
Total 200 100%
Analysis:
 69% of the respondents said that buying groceries online is beneficial
 31% of the respondents said that buying groceries online is not beneficial.
Chart 4.21 Chart showing do the respondents think buying groceries online is
beneficial
Interpretation:
The above chart depicts that most of the respondent think that buying grocery is
beneficial,
The remaining respondent thinks that online grocery shopping will be not beneficial
due the factors like forgery products, highly priced products & no guarantee of the
product.
No of respondents
No No, 62
yes yes, 138
0 50 100 150

MONIRBA Page 76
Table 4.22, Table showing why do the respondents think why it is beneficial
Easy to order 32 16%
Variety at one place 73 36%
Discounts & offers 34 17%
Saves Time 23 12%
Avoid long queues 38 19%
Any other 00 0%
Total 200 100%
Analysis:
 36% of the respondent said online grocery shopping is beneficial because of
the variety at one place.
the its avoids long queues.
discounts and offers provided by online grocery stores.
 16% of the respondent said online grocery shopping is beneficial because
online grocery shopping is easy to order.

MONIRBA Page 77
Chart 4.22, Chart showing why do the respondents think it is beneficial
Interpretation:
The above chart depicts that user respondent think that online shopping will be
beneficial as it will save their time to shop for grocery items.
The next relating aspect why consumer will shop grocery online as it will allow the
user to avoid long queues resulting in reduction in time spent in shopping.
The other factors why online grocery shopping will be beneficial as it will allow the
user to shop all the grocery at a particular place with discounts and offers.
No of respondents
Any other 0
Avoid longqueues 38
Saves Time 23
Discounts & offers 34
Variety at one place 73
Easy to order 32
0 20 40 60 80

MONIRBA Page 78
Table 4.23, Table showing the respondents favorite online grocery shopping
website
Bigbasket.com 89 44%
ZopNow.com 58 29%
Youmart.in 27 13%
Localkiranastore.com 07 4%
Naturebasket.com 19 10%
Any other 00 0%
Total 200 100%
Analysis:
 44% of the respondents said that bigbasket.com is favorite website for online
grocery shopping.
 29% of the respondents said that zopnow.com is favorite website for online
grocery shopping
 13% of the respondents said that youmart.in is favorite website for online
grocery shopping.
 10% of the respondents said that naturebasket.com is favorite website for
 4% of the respondents said that local kiranastore.com is favorite website for

MONIRBA Page 79
Chart 4.23, Chart showing the respondents favorite online grocery shopping
website
Interpretation:
The above chart depicts that majority of the respondents favorite website is
Bigbaket.cm, out of 200 respondents 89 respondents purchases groceries from
Bigbasket.com, and most of the respondents purchases from Zpnow.com, but out of
200 only 7 respondents purchases from the naturebasket.com
100
90
80
70
60
50
40
30
20
10
0
89
58
27
19
7
No of respondents
0

MONIRBA Page 80
Table 4.24, Table showing according to the respondents which is the easierway
to make shopping
Online shopping 142 71%
Offline shopping 58 29%
Total 200 100%
Analysis:
 71% of the respondents are said that buying groceries online is beneficial than
buying in stores.
 29% of the respondents are said buying groceries online is not beneficial.
Chart 4.24, Chart showing according to the respondents which is the easier way
to make shopping
Interpretation:
From the above chart we can infer that majority of the respondents are thinking that
buying groceries online is beneficial than buying in regular stores or in offline. Out
200 respondents 142 respondents feeling that shopping groceries through online is
easier.
No of respondents
Offlineshopping 58
Onlineshopping 142
0 50 100 150

MONIRBA Page 81
CHAPTER 5
FINDIGS:
In the survey, interviews and study conducted above, I came across many factors that
are as fallows.
 54% of the shoppers who does online shopping are the age above 30 years,
and 35% of the youth between the ages of 18 to 24 years.
 The number of Female respondents was more that is 56% as compared to the
male respondents that was only 44%. It shows that most of the grocery
shopping is done by the females.
 The survey indicates that majority of the was from the service sector that is
46% of the total respondents.
 The survey indicates that 100% of the respondents uses internet for email,
shopping, facebook etc.
 From the survey it was came to know that most of the respondents have
access to the internet from home that is 58% as compare to having access to
the internet at office that is only 38% of the total respondents.
 35% of the respondents using internet 3 to 4 times in a day.
 From the data collected above it can observed that 100% of the respondents
does online shopping.
 The survey indicates that majority of the respondents buys electronics items
by online as compare to apparel.
 72% of the respondents does online grocery shopping and 28% of the
respondents never do online grocery shopping.
 The study reveals that 38% of the respondents does online grocery shopping
weekly.
 Majority of the customers that is 46% of the respondents spend Rs 500-1000
on online grocery shopping.
 Majority of customers prefer subzimandi and local kirana stores for grocery
shopping.

MONIRBA Page 82
 46% of Customer prefers to purchase products from Bigbasket.com, that
indicates customers are attracted towards Bigbasket.com. It indicates it has a
good market potential in future.
 Bigmamma.in has low customer preference as it is new in the online grocery
market but it has a good market potential in future.
 Most customers prefer shopping by online due to the wide assortment of
products available.
 Giving offers and discounts have more effect on consumer buying decisions.
 Certain parameters which motivates the user to shop online are:
online.
 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 & avoid long
queues.
 Security, physical examination is the important issues in the online shopping
which determines the tangibility of the product.
 From the above data collection we can determine most of respondent agree to
buy grocery online if the option is given.
 Maximum number of the respondents are shopping groceries in online outlets
it shows that future trend & growth of online retail sector is very high.

MONIRBA Page 83
5.2- SUGGESTIONS AND RECOMMENDATIONS:
 Create awareness & manage home delivery services properly.
 Various schemes & festival offers, cash discounts on bulk purchase can be
provided to attract new customers.
 Different advertising medium should be adopted to bring awareness in
shoppers about the online grocery shopping store and its product.
 In order to increase the productivity of the site, the firm should offer special
discounts with respect to seasons like Diwali, Ganpati, Holi etc, also special
packages should be created as monthly ration.
 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 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.
 Convenience & time saving are the main reason to shop groceries online.
Therefore Business to Consumers (B2C) sites should be designed in such a
way that consumers spend less time in finding information they are looking for
as delays in searching or loading a web page might turn the consumers to other
sites which have faster download & display times.
 The key to selling to a customer which cannot be seen is to get the customer to
trust the website with which they have electronic transactions.
 Most of the Indians still like to see the product before buying; efforts should
be made to change this mindset of the people by making them aware of the
benefits of online grocery shopping.
 Vendors should educate the customers about e-commerce like educating them
on safety tips like reading the item description, looking for a seller’s feedback
score and asking questions, detecting spoof mails & informing them about the
new online crimes which happen regularly.

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