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Submitted To:
BANARSIDAS CHANDIWALA INSTITUTE OF PROFESSIONAL STUDIES,
DWARKA, NEW DELHI
(Affiliated to Guru Gobind Singh Indraprastha University)
DECLARATION
I hereby declare that this Final Research Project Report titled “Customer Satisfaction on E-
Studies, Dwarka is a bona-fide work undertaken during the period from January 2019to April
2019and has not been submitted to any other University or Institution for the award of any
Date: / / 2019
Rishaub Goel
41161201716
This is to certify that as per best of my belief the project entitle“ (Customer Satisfaction on
E-Commerce Grocery) ” is the bona-fide research work carried out by (Rishaub Goel, #
41161201716 )student of BBA, BCIPS, Dwarka,New Delhi during January 2019–April 2019,
in partial fulfillment of the requirements for the Degree of Bachelor of Business
Administration.
--------------------
Name:
Research Project Guide
Date:
Counter signed by
-------------
Name:
HOD / Director
Date:
INDEX
2. Acknowledgement
3. Executive Summary
A grocery store or grocer's shop is a retail shop that primarily sells food. A grocer is a bulk
seller of food.
Grocery stores also offer non-perishable foods that are packaged in bottles, boxes, and cans;
some also have bakeries, butchers, delis, and fresh produce. Large grocery stores that stock
significant amounts of non-food products, such as clothing and household items, are
called supermarkets. Some large supermarkets also include a pharmacy, and customer
service, redemption, and electronics sections.
Since online grocery stores offer a variety of products and services ranging from different
prices and discounts at different products and due to them being available , people get their
goods delivered at their homes which saves their time being wasted waiting in long queues or
in travelling.
In course of the project we noticed that more than 50 percent of the respondents buy
groceries online since they find online grocery shopping easier than buying groceries from a
local supermarket since they can order in bulk, get good discount and it is more convenient
for them to shop online. The most preferred grocery brand by the customers is Grofers
followed by Amazon Pantry.
Chapter – 1 Introduction / Background of the Study
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. 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 behaviour in
cyberspace.
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 50,000 crores in 2011. About 80% of this is travel related (airline tickets,
railway tickets, hotel bookings, online mobile recharge etc.).Online retailing comprises about
15%. India has close to 10 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 was undertaken under the supervision of
Nirala Imex Inc who currently has their business operation in Taiwanese market in selling of
Indian grocery items to the local retailers & wholesaler in the Taiwanese market. The
company has proposed a plan to launch an online grocery store in the Indian market for
which the project was undertaken was to determine whether online grocery shopping will be
beneficial to the user with respect to questionnaire which will be analysed in three parts. 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
A grocery store or grocer's shop is a retail shop that primarily sells food. A grocer is a bulk
seller of food.
Grocery stores also offer non-perishable foods that are packaged in bottles, boxes, and cans;
some also have bakeries, butchers, delis, and fresh produce. Large grocery stores that stock
significant amounts of non-food products, such as clothing and household items, are
called supermarkets. Some large supermarkets also include a pharmacy, and customer
service, redemption, and electronics sections.
E-Commerce Grocery stores are becoming popular these days since people want to ease their
way of purchasing grocery which is done in routine by them .
Customer satisfaction indicates the fulfillment that customers derive from doing business
with a firm. In other words, it’s how happy the customers are with their transaction and
overall experience with the company.
Amazon Pantry :-
Amazon Prime Pantry is a service of Amazon.com available only to Amazon Prime members
that packages everyday (non-bulk) non-perishable grocery store items into a single box for
delivery for a flat fee. The service is available in the United States, the United
Kingdom, Germany, Austria, India, Japan, Italy, Spain, and France. Available only to
customers with Prime membership to order up to 45 pounds or up to 4 cubic feet of dry
goods and non-perishable groceries for a flat delivery fee of $5.99 in the US.
An ever-changing but limited variety of products is offered, but the range has decreased since
the service was first launched. While selecting items within the Prime Pantry program, each
item lists the percentage of space it will take up inside the delivery box. A running total
shows how full this box is. The delivery fee remains the same regardless of the filling
percentage.
In the United Kingdom, Amazon signed a deal with British supermarket chain Morrisons to
provide supplies for Pantry and Fresh.
Delivery is within a set time period. An email alerts customers of their delivery date. A full
box can weigh up to 45 pounds
Grofers :-
Grofers is an Indian online grocery delivery service. It was founded in December 2013 and is
based out of Gurugram. As of 2018, the company has raised about $442.5 million from
investors including SoftBank, Tiger Global and Sequoia Capital.
The name Grofers is a portmanteau of "grocery gophers".[8] Customers of the company use a
mobile application to order groceries online. Grofers employees then secure the items from
their warehouse and deliver the items to the consumer. The delivery may be scheduled for
any time of the day. Grofers currently operates in a total of 18 cities across
India: Delhi, Gurugram, Mumbai, Bengaluru, Kolkata, Noida, Pune, Ahmedabad, Chennai,
BigBasket :-
BigBasket.com is India’s largest online supermarket and allows a customer to walk away
from the drudgery of grocery shopping and welcome an easy relaxed way of browsing and
shopping for groceries. The company currently operates from Bangalore, Mumbai and
Hyderabad and has a diverse portfolio that carries more than 12,000 products and over 1,000
brands.
The grocery retail market in India is growing at about 10% CAGR and is about USD 400
Billion in size while e-grocery accounts to only 0.1%. Within this the online grocery market
is expected to be about USD 10Billion in the next 4 years from now. A majority of this
market is likely to be concentrated in the urban cities in the country.
Chapter -2
Statement of Research Problem
A) Research Objectives
B) Research Questions
This project focuses on the customer satisfaction towards E-Commerce Grocery and answers
to questions like:-
Are their needs and wants being fulfilled by the online grocery stores which are available
these days?
Do their products and services satisfy the customer needs, wants and desires ?
Since online grocery stores offer a variety of products and services ranging from different
prices and discounts at different products and due to them being available , people get their
goods delivered at their homes which saves their time being wasted waiting in long queues or
in travelling .
Chapter- 3
Literature Review
Many factors affect the store patronage decision, e.g. location, service levels, pricing
policies, merchandise assortment, store environment and store image, but very little
research has considered stress as a determinant. This is despite the increase in dual
income families and longer working hours which are making general shopping a more
stressful activity for many families because of time pressure and lack of response by
retailers. This exploratory research confirms grocery shopping to be stressful, but
time pressure was mentioned as only one factor causing shopping stress; other factors
included: crowd density, staff attitude and training, store layout/relocation, impulse
purchasing pressure, location, product assortment, music, and lighting. The article
concludes by proposing a shopping stress curve for future examination.
Internet plays gradually a more crucial role to connect information and people, the
pressure has continued to rise on markets which have already employed online services,
and especially on markets to which selling products online is novel. The trend of the retailing
store is changing as a growing number of retailers are shifting their focus from general brick
and mortar retailing to new formats such as electronic retailing or e-tailing. The study
depicts the expectation of a customer while buying groceries online and in physical market
is totally different. The study reveals that the major reason for purchasing groceries online is
saving time and effort and there are no time restrictions on shopping.
-By KAVITHA.R
Assistant Professor
Department of Commerce
Sri Krishna Arts and Science
College
Coimbatore-08, Tamilnadu,
India
4) A Study of Consumer Perception towards Online Grocery Shopping: Challenges and
Prospects
Online shopping is a common phenomenon for today’s customers even in smaller cities but
there are some specific markets that are still facing challenges for growth and opportunities
to a large extent. One such market is online grocery shopping segment. The paper studies
various dimensions of online grocery shopping ranging from its characteristics, its processes,
present consumer perception towards online grocery shopping, Indian players in the market,
and the different variables around which the study revolves. The research methodology of the
paper includes literature review, formulation of a structured questionnaire, survey conducted
in the city of Allahabad, Uttar Pradesh, India. The data was analyzed with the help of
statistical software SPSS and statistical tools like frequency tables, Factor Analysis etc. The
major findings and recommendations of the research paper provided foundation for reasons
behind expanding the market of online grocery shopping, the challenges as well as the future
business prospects in Tier II. The study concluded that factors like wide variety of products,
offers and discounts, free home delivery, time saving and convenience, cost effective, easy
terms and conditions, user friendliness, authenticity and genuineness, easy to order and cash
on delivery should be taken as strengths and pillars of online grocery shopping and these can
be improvised or modified to extract maximum advantage for business.
Shopping on the internet has been developing rapidly, covering most of the important spheres
of marketing. Online grocery shopping has been noted of being a relatively young but
promising area of electronic commerce. However, only a sparse number of studies have been
focusing on consumers’ attitude to purchase grocery products through online. This paper
seeks to understand the consumer’s attitude towards online grocery shopping and to identify
some factors and technical barriers that may foster or hinder the acceptance of OGS in India.
A Questionnaire was developed and distributed to the online shoppers in Delhi city through
snowballing techniques and then collected data was analysed by using ANOVA, Mean and
Standard Deviation. The results suggest that among demographic variables family income
and age is one of the significant factors while understanding behavior dimension related to
education level or working members in the family can also help online marketers to develop
positive tendency to online grocery shopping. Moreover results indicate that time slot option
among product delivery factors and user friendly website among website designing factors
are the most important variables for the respondents. However, Consumers are also more
concerned about the quality of products among the various fear factors related to online
grocery shopping. Social influence factors have least importance, albeit customer review has
moderate weightage. Speed of the internet and unfamiliarity of OGS websites are the
technical barriers perceived by respondents.
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 and 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
and making a service that may have once felt luxurious into an everyday convenience.
Benefits of Online Grocery Shopping The primary benefit of online grocery shopping is
convenience. By ordering online, one can quickly search for the products she 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 onlinegrocery store can allow a person to do all
her grocery shopping during her lunch break at work. 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. The use of online-based grocery stores is increasing in popularity as more and
more people become comfortable with using the Internet to make purchases
RESEARCH METHODOLOGY:
In the preparation of this report, the data is researched from different sources. The sources of
data as follows:
● Primary data: This data is gathered from first-hand information sources by the
researcher, this data collection from employees, managers, clerks etc., by
administrating the questionnaire having face to face interaction with employees.
● Secondary data: This will give the theoretical basis required for the report
presentation which can be available from various sources such as magazines, office
files, inter office manual and web site.
SAMPLING:
Convenience Sampling: A convenience sample is a type of non-probability sampling
method where the sample is taken from a group of people easy to contact or to reach. For
example, standing at a mall or a grocery store and asking people to answer questions would
be an example of a convenience sample. This type of sampling is also known as grab
sampling or availability sampling. There are no other criteria to the sampling method except
that people be available and willing to participate. In addition, this type of sampling method
does not require that a simple Random sample is generated, since the only criteria is whether
the participants agree to participate
Data collected is carefully tabulated and analysed by using satisfaction methods and also
various graphs are used.
DATA SOURCE:
Primary data were collected by direct interview and by survey method. Secondary data were
collected by internet and journals.
Chapter-5
Data Analysis and Interpretation
Question 1)Which of the following online grocery retailers are you aware of?
Grofers
Amazon Pantry
Big Basket
Flipkart
No. of Respondents Percentage of Respondents
Grofers, Amazon 1 2%
Pantry,Flipkart
Flipkart 2 4%
Grofers , Flipkart 2 4%
Grofers 10 20%
TOTAL 50 100%
TABLE NO. 1
Most of the people prefer to buy online grocery from Grofers that is 20% followed by big
basket 14% and Amazon pantry 14%.
Supermarket store
I do not do any grocery shopping
TOTAL 50 100%
TABLE NO. 2
more than 50% people tend to buy their groceries online followed by those who
choose supermarket 38%
Weekly
Once a quarter
Once a year
Weekly 8 16%
Once a year 1 2%
TOTAL 50 100%
TABLE NO. 3
Major percentage of population (36%) tend to buy online grocery store on the month which
means there's still a gap between the prospects and online grocery stores.
Question 4) Which of the following reasons are your reasons for grocery shopping
online?
TABLE NO 4.1
More than 50% of people agree that other reason to buy online grocery is the distance degree
retail stores supermarket from their residence.
TABLE NO 4.2
More than 50% of people consider online shopping because they don't want to carry heavy
bags.
TABLE NO 4.3
More than 50% people shoes online shopping because they can order in bulk and also then
only to carry heavy bags along with good discount
TABLE NO 4.4
Around 55 percent of the population tell the health issues due to which they prefer online
shopping.
TABLE NO 4.5
43% of the respondents do not drive hence it is difficult for them to go to the supermarket.
TABLE NO 4.6
50% people says that they local supermarket do not fulfill needs and hence they choose
online grocery shopping.
TABLE NO 4.7
43% of people do online shopping since the local supermarket does not provide them with
healthy groceries.
8. Work and online shopping allows me to deliver my goods at a time suitable for me
No. of Respondents Percentage of Respondents
Highly Satisfied 11 22.7%
Satisfied 15 29.5%
Neutral 19 36.4%
Dissatified 3 6.8%
Highly Dissatified 2 4.5%
TOTAL 50 100%
TABLE NO 4.8
Around 50% people say that online grocery allows them to get the things delivered at the
time of their own choices.
Question 5) To what extent do you agree or disagree with the following statements?
Here, 1-5 mean;
1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
TABLE NO 5.1
36 percent of people say that online grocery shopping helps them to restrict their spending.
2. Online shopping is a much quicker/convenient process than visiting my local
supermarket store
No. of Respondents Percentage of Respondents
Strongly Disagree 5 10%
Disagree 5 10%
Neutral 11 22%
Agree 15 30%
Strongly Agree 14 28%
TOTAL 50 100%
TABLE NO 5.2
30 percent of people agree to the fact that online shopping is way more convenient then
visiting the store or supermarket.
3. Online shopping is too much hassle to set up I would prefer to visit a supermarket
store
No. of Respondents Percentage of Respondents
Strongly Disagree 4 8%
Disagree 14 28%
Neutral 12 24%
Agree 12 24%
Strongly Agree 8 16%
TOTAL 50 100%
TABLE NO 5.3
28% of people consider online shopping is too much hassle which means they are still not so
friendly with the online services.
Question 6) If you were to buy your groceries from an online retailer, at what time of the day,
would you prefer to have your groceries delivered?
9.00am -11.00am
11.00am - 1.00pm
1.00 pm - 3.00pm
3.00pm - 5.00pm
5.00 pm -7.00pm
7.00pm - 9.00pm
9.00pm - 11.00pm
TABLE NO 6
26% of people want their order to be delivered between 11 a.m. to 1 p.m which means
people are generally available at there location at this time
A) Major Findings
1) Most of the people prefer to buy online grocery from grofers that is 20% followed by
big basket 14% and Amazon pantry 14%.
2) More than 50% people tend to buy their groceries online followed by those who
choose supermarket 38%
3) Major percentage of population (36%) tend to buy online grocery store on the month
which means there's still a gap between the prospects and online grocery stores.
4) More than 50% of people agree that other reason to buy online grocery is the distance
degree retail stores supermarket from their residence.
5) More than 50% people shoes online shopping because they can order in bulk and also
then only to carry heavy bags along with good discount.
6) 50% people says that they local supermarket do not fulfill needs and hence they
choose online grocery shopping.
B) Concluding Comments
In course of the study conducted, the conclusion of the project is that more than 50 percent
of the respondents buy groceries online since they find online grocery shopping easier than
buying groceries from a local supermarket since they can order in bulk, get good discount
and it is more convenient for them to shop online. The most preferred grocery brand by the
customers is Grofers followed by Amazon Pantry.
Chapter-7
Suggestions
As there are no proper laws for online purchases, they have to be implemented to
prevent the anonymous intruders. This will help to maintain security and private
information properly concerning the respondents. So the website developers and
service providers should take necessary steps to overcome this problem
Web based technologies upgrades creative conceptualization that would improve the
response from technology savvy consumers. So the firms have to invest in such new
technologies..
Internet environment has to be improved in the areas of art, dynamic and interactive
techniques. This improvement will give more visual appeal.
One of the major drawbacks that the respondents have felt is no proper returning
policy to the product. After getting opinion from the respondent if the above said
problem occurs, then they should be guided in a proper way to return the product.
This will create a good website reputation and repurchasing power of the respondents
The vendors and service providers should avoid hidden charges. This will help to
avoid increase in price of product.
Annexure
BIBLIOGRAPHY
5) Harjinder Kaur and Rakesh K. Shukla, Consumer’s Attitude for Acceptance of Online
Grocery Shopping in India.
6) Mrs. Chitra Sharma, Consumer Perception Towards Online Grocery Stores, Research
Scholar, Pacific University Udaipur.
Questionnaire
Question 1) Which of the following online grocery retailers are you aware of?
Grofers
Amazon Pantry
Big Basket
Flipkart
Supermarket store
Weekly
Once a month
Once a quarter
Once a year
II. Online shopping is easier for me as i don't have to carry heavy bags
III. Online shopping allows me to order in bulk
IV. It is difficult for me to visit my local supermarket as i have health related
problems
V. I do not drive/ own a car, so getting to a local store is difficult for me
VI. My local shopping center does not meet my needs
VII. Online shopping helps me to buy healthier foods
VIII. Work and online shopping allows me to deliver my goods at a time suitable
for me
Question 5) To what extent do you agree or disagree with the following statements?
Here, 1-5 mean;
1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree