consumer preference for online shopping of groceries

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CONSUMER PREFERENCE FOR ONLINE SHOPPING OF GROCERIES

FOR INDBAZAAR, PUDUCHERRY.

A Project report submitted for the

Partial fulfillment of the requirement of the degree of

Bachelor of Business Management

Submitted by

M. MOHANAPRIYAN (Reg.No.16BM0217)

S.SIVASANKARAN (Reg.No.16BM0238)

R.BHARATHI (Reg.No.10BM0207)

Guided by

Dr.A.BHARATHY, M.B.A, HDSM, M.Phil

Assistant Professor,

Department of Management Studies,

Pondicherry University Community College.

Pondicherry University Community College

Department of Management Studies

Puducherry -605 008.

April 2019

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CHAPTER 1

1.1 INTRODUCTION

E-commerce has been the most disruptive of the innovation in the past decade companies like

Amazon, flip kart,clean trip,alibaba, snap deal, India mart, Just dial, Myntra etc has changed the

market place. We do see several regional players like Snap deal, Flipkart as well as global grants

like Amazon and Alibaba in the field. It is reposted that in 2009 this model was worth 3.9 billion

US dollars and in 2016 it was worth 38 billion US dollars. It is expected to grow to about 100

billion US dollars by 2020 in India. The growing base of internet and mobile has also helped the

growth of this market place model.

Further we are also seeing consumers increasingly adopting to these market place models for

their various needs. It is also seen that online grocery stores, online healthcare service services

are also making their way in big cities like Grofers, bigbasket, Goodrej’s Nature’s basket,

Reliance fresh, Zopnow, Amazing pantry, Pepper fry.com, Med life etc.

These services are very much welcomed by the consumers due to their affluence and look out for

early life A stand up in online grocery retail has also been set up in Puducherry and is fast

expanding to neigh bowing places like and Chennai this is first of the kind in puducherry and

hence the focus of this study is to understand the level of consumer preference to online grocery

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stores, where the market has numerous departmental stores, supermarket & convenience stores,

in the neighborhoods of the town.

1.2 COMPANY PROFILE

In bazaar

In bazaar is a unit of Manakula-aq Vinayagar Technologies Private Limited.

What is Indbazaar?

Indbazaar.in (Innovative Retail Concepts Private Limited) is an emerging online food

and grocery store, catering to the daily needs of 3000+ customers in and around Villupuram,

Tindivanam, Cuddalore and Puducherry. With the head office in Puducherry, Indbazaar.in has

more than 4500 products and over 200 brands in its catalogue. We offer everything you are

looking for. Right from cookeries to confectioneries, cosmetics, beverages, health and personal

care products, groceries, and all household FMCG products. In a nutshell, Indbazaar.in is a one-

stop destination for your family needs – you name it… we have it all.

With a large amount of products, exclusively handpicked based on a market research, we have

the most desirable ones in every category to choose from. So, we help you find the best quality

available at the lowest price. your order will be delivered right at your doorstep, anywhere in

Puducherry and Villupuram.

Payment can be done online using your debit / credit card or by cash on delivery.

We guarantee both on time delivery, and the best quality!

How can consumers use Indbazaar.in?

Indbazaar.in facilitates hassle-free, relaxed shopping at your convenience as and where

you are – be it at home, office or on travel. Now exclude daily, weekly and monthly shopping

from your routine schedule and from your to-do list. We offer a highly gratifying shopping

experience, just at a click of a mouse or a touch of your mobile screen. We let you explore new

products and shop for all your food and grocery needs without stepping out of your drawing

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room. Now, say NO to traffic jams, parking payments, waiting in long queues and carrying

heavy bags – get everything you need, right at your doorstep. Just click at the link below and

enter into the world of a seamless shopping.

How do consumers order?

1. Browse Indbazaar.in for products or use the search feature

2. Add items to your Shopping Basket

3. Select suitable payment option (Cash, Credit Card ,Debit Card, Netbanking)

4. Your products will be home-delivered as per your order.

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1.3 PRODUCT PROFILE

Grocery, Masalas and Flours:

-Dals and pulses

-Masalas and spices

-Edible oils and ghee

- Rice

-Salt, sugar and jaggery

-Flours and rava

-Pickles

Breakfast and Branded Foods:

-Ready to cook

- Sauces

-Noodles and Pasta

- Breakfast cereals

-Jams and spreads

Snacks, Dry Fruits and Nuts:

-Biscuits

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-Chocolates and Sweets

-Chips and Namkeens

- Dry Fruits and Nuts

Home Needs:

-Dish wash

-Repellents and Freshness

-Deterge nts

-Floor and toilet cleaners

-Home needs

-Pooja needs

-Other needs

Health and Beauty:

-Face and Body Care

-Hair Care

-Shaving and Grouping Accessories

-Health Care

-Oral Care

-Cosmetics

-perfumes and Deodorants

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-Sanitary needs

Beverages, Drinks and Juices:

-Juices

-Drinks

-Tea and coffee

-Mineral water

-Health drinks

Bakery, Bread and Diary:

-Milk products

-Bread and bakery

-Ice creams

Egg, Meat and Frozen Foods:

-Eggs

-Fresh meat

-frozen foods

Baby Care:

-Baby care accessories

-Baby food

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-Baby skin care

-Baby hair care

Fruits and Vegetable:

-Fresh fruits

-Fresh vegetable

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1.5 INDUSTRY PROFILE

BEST ONLINE SHOPPING SITES FOR GROCERY IN INDIA

Grocery shopping is a very boring, but an unavoidable business. Want to get rid of it? Then do

so. How? This is how. Order groceries online, from top online grocery store and sit back and

relax. Yes, it is that simple. Get rid of the tedious task of commuting to the local store for buying

groceries. Ordering these from the online grocery sites for grocery in India helps you in more

ways than one – saves your time, energy and money. You can get great deals online as well

based on days, weeks, festivals and occasions such as New Year deals, Holi offers, Independence

Day deals and more. If you have odd working hours, if you find it tedious to go out and if you

simply hate going grocery shopping, why not make the most of this option? So, here’s a

handbook of the best online grocery store that you help you shop like a pro.

7 BEST ONLINE SHOPPING SITES FOR GROCERY IN INDIA

Grocery shopping is a very boring, but an unavoidable business. Want to get rid of it? Then do

so. How? This is how. Order groceries online, from top online grocery store and sit back and

relax. Yes, it is that simple. Get rid of the tedious task of commuting to the local store for buying

groceries. Ordering these from the online grocery sites for grocery in India helps you in more

ways than one – saves your time, energy and money. You can get great deals online as well

based on days, weeks, festivals and occasions such as New Year deals, Holi offers, Independence

Day deals and more. If you have odd working hours, if you find it tedious to go out and if you

simply hate going grocery shopping, why not make the most of this option? So, here’s a

handbook of the best online grocery store that you help you shop like a pro.

Some online grocery shops in India:

Big Basket

Grofers

Zopnow

Nature’s Basket

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Reliance Fresh

Amazon Pantry

Aaramshop

Bazaar Cart

Naturally Yours

BigBasket

BIG BASKET:

BIG BASKET:

Big Basket is India’s leading supermarket selling quality and fresh vegetables, fruits, beverages,

personal care products, household items, meat and eggs, bread, grocery and staples. Here you

will get quality products be it rice, dairy, spices, gourmet products or any other items related to

your grocery needs. And is savings on grocery shopping is at the top of your mind, Big Basket is

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the place for online grocery India . Here you can get various discounts and offers such as a 10%

cash back or an extra 5% off on your orders using the Big Basket coupons. Other than the quality

and discounts, they also ensure on-time delivery, same day or express delivery and signature

packing. The store delivers products that are ordered online anywhere in the following cities –

Chennai, Bangalore, Hyderabad, Pune, Mumbai. Big Basket is an award winning company –

“Best online grocery store” by VCCircle for ‘Consumer Internet Company of the Year 2016’.

Now, you can give BigBasket Gift Cards to your loved ones and help them save big on groceries

and everyday items.

Grofers:

Grofers:

It is a hot favorite and the best online grocery shopping market place. Their uniqueness lies in

the fact that they connect consumers with all local stores, selling grocery items. It is an on-

demand store that delivers veggies, fruits, other grocery items, baked goodies, electronics,

cosmetics, flowers, baby care and pet care products as required by the consumers. You have the

freedom to shop from the favorite stores, in your area, choose and schedule delivery slots and

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also get real time updates on whatever you order. They have covered lots of cities such as Delhi

NCR, Mumbai, Pune, Nagpur, Kanpur, Kolkata, Hyderabad, Bengaluru, Chennai, Indore,

Lucknow, Surat, Jaipur, Agra, Ahmedabad, Vadodara and Chandigarh.

Enjoy free online delivery on all your orders from Zopnow, one of the best store for grocery

shopping online in India. We will send you updates about special Zopnow coupons, sale prices

drop and discounts in and around the city, like cashback offers in Hyderabad, additional off on

orders above Rs. 500 and many more seasonal discounts. You can also refer a friend and take

25% additional Zoppies, where these Zoppies can be used to redeem during the checkout process

at the store. Online grocery shopping India made easy with Zopnow!

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They believe that nothing can bring people together like Good Food. And so brought to you

premium options to order food through online India across various categories, such as health,

fruits, vegetables, beverages, bakery, eggs, meats, confectionery, desserts, ready-to-eat lip

smacking food and more. Indulge your taste buds in a variety of tantalizing cuisines. You may

also like to buy Nature’s Basket cooking aids and books available in the form of accessories and

books. Nature’s Basket is know for best online shopping grocery store in India for premium

quality, imported grocery, fruits, dry fruits, wheat and more

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Reliance took to the online grocery market, as its brick and mortar stores has already been a huge

hit with the consumers. Just like its physical counterparts, the online stores offer 6000+ products

all over India. With Reliance Fresh Direct, you would no more be required to go out for grocery

shopping, jostling in the crowd and sweating in the sun. Make your choice from the freshest

veggies and fruits, nutritive dairy and grocery staples, baked items, packaged foods, drinks,

confectioneries and snacks, personal care and household items from the list of best online

grocery store.

You can now shop online for your monthly groceries with Amazon Pantry. Shop from a wide

range of items cooking essentials, beverages, household supplies, and other daily needs items.

You can also get an extra 5-15% cashback if you purchase for more than Rs 1000. Visit the site

for more information.

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Whether you want to buy the basics, or like to follow the food pyramid or just want to buy

everything on your grocery shopping list; well none of this is a chore anymore. Green Cart is

here to help you shop groceries, fresh veggies and basics like – diary, bakery, international food,

beverages, organic food and widest range of fresh produce. They keep their quality as their

primary principle and aim to offer their products at the affordable prices. Find exclusive Green

Cart coupons at GrabOn and save big on your online food products shopping.

Admit to being lazy and don’t want to go to the local grocery stores that are on your way home?

You have got Aaramshop where you can pick health drinks, snacks, fresh vegetables, biscuits,

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cookies, edible oils, laundry supplies and a wide range of groceries. With this store, you can

choose a delivery slot whenever you want and wherever you want. Choose the perfect

Aaramshop coupons that you need or want, use the right coupon during your checkout at the

store and you are done! You will see savings added-up to your cart value.

.

We’ll know farmer’s markets are cheap, they bring fresh produce and they are just generally

fantastic. So if this is something that you are looking for, shop at Naturally Yours. Even if you

want to buy food that make you happy as well as your tummy, Naturally Yours is the right place

to shop at. The is one of the grocery stores that features over 20000 carefully curated products

for your health, mind, body and soul. They have a huge range of organic cosmetics, organic

supplements, organic clothing, organic food and organic Ayurveda.

There are lots of other grocery stores that sell everyday products, vegetables and lots of other

food items online. Some of them are worth mentioning viz

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Mr. Nara Chandrababu Naidu in the year 1992, Heritage is growing strong with retail stores viz.

Heritage Fresh. There’s a wide variety of items on offer, from edible oils to pulses, rice & rice

products, baked and frozen goods, flour, spices, salt & sugar, personal care, household items and

more. Promising easy exchange & on time delivery along with 8000 products, about 90+

Heritage Fresh stores are available for online grocery shopping Bangalore and Chennai. Look out

for the December offers from Heritage Fresh stores.

.

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This online supermarket was born out of the necessity to provide the local households with high

quality groceries at cheaper prices and save on effort and transportation charges. Zip takes their

tagline of ‘Ghar Se. Ghar Pe.’ very seriously, boasting same day delivery, flexible time slots for

delivery, high quality products and a wide range of products along with daily offers. From dairy

products to laundry needs, snacks and everything in between, all your grocery needs will be

satisfied at Zip. Currently serving the households of Vizag and Hyderabad, denizens of other

cities you will have to wait your turn

This online grocery shopping service is currently available in Kolkata and NCR, promises a 3

hour delivery of quality products at best prices. Offering 15000+ products spanning categories

like fresh fruits & vegetables, frozen goods, dairy products, personal care and house decor and

household items, Spencer’s still continues to enjoy the trusted status in the retail and grocery

category.

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This hypermarket subsidiary of Aditya Birla Group has stores spread across major Indian cities.

Morestores one of the online supermarket India offer products across categories such as fruits &

vegetables, home care and furnishing, fitness products, personal care, stationery and more at

reasonable prices. With Full & Fresh at 5, they make sure that you and your family enjoy high-

quality products.

Some of these are Grocerskart, Kingbasket, SRS Grocery, Ferns N Petals and more. What I

would like to add here is Ferns N Petals is one store that sells only gourmet items, chocolates,

and various other gift items. This is a shift from the general grocery needs. Check out their site to

know more.

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CHAPTER 2

NEED FOR THE STUDY

E-commerce is fast growing and this has brought about the launch of innovative market place

models not only for A to Z products like Amazon, clothes through Myntra etc… But we are

seeinge-commerce portal’s for even groceries, healthcare and furniture etc.,

In this regard the town of Puducherry has seen the launch of its own online grocery store

“indbazaar.in”. The town already is well served by e-commerce portals like Amazon, India mart

etc. These are all global\National brands. Though national online grocery stores like Grofers and

Big basket are presently in our country it does not serve towns like puducherry. Hence there is a

need to study how this model is accepted and used by the consumer of Puducherry. This will

enable the company to take necessary strategies to improve its sales and grow to other places.

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CHAPTER - 3

REVIEW OF LITERATURE

The study on “Consumer Preference for Online Shopping for Groceries in the town of

Puducherry” is based on the review of the following concepts through literature review.

Introduction to Online Buying Behaviour

Online Buying Behaviour

Definition: Use of the Internet for retail shopping has expanded immensely in recent years and

has had a profound influence on the shopping process for many consumers. Online buying

behaviour is a type of behaviour which is exhibited by customers while browsing websites of an

e-tailer in order to search, select and purchase goods and services, in order to fulfill their needs

and wants. It’s basically a behaviour which is reflected by the purchaser during the process of

buying through the internet.

While shopping online,every customer desires convenience, speed, price benefits, product

comparison facility etc. It is not that these features are not available in traditional shopping

methods. But due to changes in life style, the notions of these features have changed among the

buyers. Now individuals are finding it difficult to shop from traditional channels due to their

changed lifestyle. As a result of all these issues along with the technological advancements, a

new mode of shopping i.e online shopping also called as electronic shopping has emerged. The

Internet, in the field of shopping, has brought sea changes in the mindset of customers with

reference to convenience, speed, price, product information and services associated with online

shopping. The internet has provided marketers with a completely new way to create value for

customers and build relationships with them' in the form of online shopping. Online shopping is

the process whereby consumers directly, without an intermediary service, buy goods or services

from a seller in real-time over the Internet. One way of doing electronic commerce is online

shopping. In online shopping, electronically the sale or purchase of transaction takes place. It is

also referred to as e-shopping where‘e’ stands for Electronic Shopping.Electronic shopping is

defined as a computer activity/exchange performed by a consumer, via a computer-based

interface, where the consumer's computer is connected to and can interact with, a retailer's digital

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storefront to purchase the products or services over the internet. An e-shop allows the customer

to browse entire range of product or service offered by e-vendor, view pictures of the products,

along with the complete description of the product specifications, including features and prices.

On online stores with the help of “search” features helps e-shoppers to easily search out specific

models, brands or items. In present time almost all the big retailers are now offering their online

shops. These are also known as e-tailers and their online retail shops are sometimes known as e-

tail.

Reasons for Buying through Online Channel There exists a large amount of differences between

online and offline shopping channel. The biggest being the intangibility of online shopping

channels. In spite this barrier a large portion of the population is accepting this mode of shopping

because of below-mentioned advantages.

• Convenience: The online shops allow its customers to shop for all 7 days in a week without any

time limitation. Unlike offline shopping, in it, there is no time limitation for making the

purchase. If an e-shopper has laptop or mobile with internet connection he or she can do the

shopping from home or office or anywhere. Online shoppers even don’t have to wait for the shop

assistant to help them for making purchase. Payment for purchase made takes place with a click

of the mouse. One of the problems which customers have to face at the time of festivals and

special events is the huge crowd. Many times it happens that customers have to do their shopping

in a hurried manner because of the crowd. Online shopping channel provides convenience in this

matter also. There is no concept of crowds while shoppingthrough. Along with shopping one can

search information about merchandise very conveniently while shopping through online

channels. It also provides convenience with reference to tracking of order status, delivery &

shipping status.

• Time Saving: Online shopping channel helps customers save a lot of time which is consumed

in case of offline shopping. In the case of online shopping, customers need not to go anywhere

for shopping, they need not stand in long bill queues , even they don’t have to face the crowd

while shopping. All these features of online shopping results in saving of consumersprecious

time. By means of online shopping, customers can easily send gifts to their relatives and friends

on special occasions thereby saving their travel time.

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• Ease of Comparison: In online system, one can easily compare merchandise and its pricing at

different websites with the simple click of a button .Now there are many websites available

which are specifically made for comparison purpose like www.compareraja.in,

www.policybazzar.com, etc.By comparing through these website one can easily choose the best

deal for purchase.

• Large Variety: A physical store is either single branded or multi-branded. In both type of

physical stores there arises limitation either related to the availability of several brands or

limitations related to the availability of variants of a product of a particular brand. No such

problems arise with virtual stores. In a virtual store, a shopper can easily search and purchase

several products and multiple products at a single location. Even purchase of an international

brand can be easily made through online shopping mode from any corner of the world.

• Lower prices and discount offers: E-shoppers can purchase the merchandise at comparatively

lower prices through online shopping channel. The reason being no involvement of middlemen

between buyer and seller in supply process. Online retailers time to time provide discount offers

to their customers. They generally launch sales with heavy discounts offers on festivals, at the

end of a season and on independence and republic day. Due to the elimination of maintenance,

real-estate cost, the retailers are able to sell the products with attractive discounts through online.

• Fewer Expenses: In the case ofconventional shopping many time buyers spend money on

activities like eating out, travelling, impulsive shopping etc. which results in high level of money

expenditure than the required one. Such type of expenses is not there in case of online shopping.

• Discreet Purchases: Shopping throughonline modes allows a shopper to make the purchase in

privacy. In this mode of shopping, shoppers don’t face the problem of other people or

salesperson watching their activities like what they are purchasing, how much time they are

consuming in taking purchase decision etc. Thus the e-shoppers are rescued from the

embarrassment occurring because of all these issueswhile shopping through online shopping

mode.

• Less compulsive shopping: In offline mode often it happens that we end up buying those

products which we don't really require. The reason being pressure to purchase exerted by

shopkeepers by using different selling skills. Sometimes, it also happens that because of limited

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choices in the offline shops that customer goes to, one has to end up the purchase process by

making a choice from those available. In online mode, no such situation arises with shoppers.

Consumer Buying Process A consumer decision-making process is generally explained as a

process consists of several sequential steps / stages. The model is summarized in Figure 1. This

model includes five steps, starting from need recognition and problem awareness related to the

product and searching the information of the same followed by alternative evaluation, making

the purchase decision and finally post purchase evaluation.

Stages of Consumer Buying Process

Need Recognition / Problem Awareness

The very first step of the buying process is the identification of need of a customer. The

purchase decision of a customer is entirely dependent on need recognition by a customer. This

recognition happens when there is a discrepancy between the consumer’s actual situationand the

desired one. This discrepancy arises due to changes either into actual or desired situation of a

customer. The consumer will then work to remove this gap between actual and desired situation

if he/ she provides a high level of importance to the need identified. It can be interpreted as if the

need is really important to be fulfilled then consumer takes will move forward for the purchase

of product otherwise not. However, it is not the case always.

Information Search

The information search process starts with recognition of the problem by the consumers. The

consumer now will gather information about potential product choices that may meet the needs

identified. The collected information comprises information majorly relating to product features,

brand, seller and price are the major subjects. Sources of information generally are print media,

radio, television, and Internet advertising. Majorly sources of information are divided into two

categories-Internal sources refers to the information availablein consumer’s memory. This

information gets collected in mind of the consumer either from its earlier experience with

product or brand and opinion about it in mind. Generally, internal sources are the basis of taking

a decision regarding the purchase of the everyday product. But when the consumer doesn’t have

much information about the product or brand then he / she has to switch to another source i.e.

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External sources includes information collected from friends or family, customers reviews or

looking at promotional ads on different media or by talking to salespersons.

Evaluation of Alternative

After identifying the need and collecting the information from various sources the consumer

now has many alternative solutions to choose from for satisfying the need. Now the consumer

evaluates different alternatives and tries to choose the one he thinks is the best solution for

satisfying his need. While doing so, two aspects are used to assess all the alternatives. One of the

aspect is related to the objective characteristics (such as the features and functionality of the

product) and Introduction to Online Buyimg Behaviour 20 the other is associated with subjective

characters (perception and perceived value of the brand by the consumer or its reputation).

Consumer’s level of involvement in evaluation process and importance of purchase decision for

the consumer are two criteria which decide how many alternative to be considered. On the

opposite, the number of considered solutions will be much smaller for an everyday product or a

regular purchase.

IV. Purchase Decision

The purchase decision is the stage which results in the conversion of prospective customers into

actual customers. The consumer steps to the actual buying process after accessing the

characteristic features of the target product and brand and evaluating all available options. Now

the possession of product moves from marketer to customer. Besides the product features and

function ,the buying decision of customer decision at this stage is also affected by such things as

the quality of his shopping experience or of the store, the availability of a promotion, a return

policy or good terms and conditions for the sale.

Post-purchase behavior

The consumer decision-making process ends with post-purchase evaluation. When a consumer

starts using a product side by side he keeps on evaluating it. The consumer or customer may feel

satisfied or dissatisfied depending upon the performance level of the product purchased. This

evaluation will have an effect on consumer’s future buying decision. If the product experience is

satisfying it will Introduction to Online Buyimg Behaviour 21 result in minimization of

https://www.researchgate.net/deref/http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FWeb_browser

https://www.researchgate.net/deref/http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FWeb_browser

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information search and alternative evaluation stage in case of repurchase made by the customer

for satisfying the same type of need. The ultimate outcome will be gaining of a loyal customer by

the seller or brand. An alternative to it the consumer has to repeat every step of buying process if

his / her experience is average or disappointing. Post purchase evaluation is also connected with

word-of-mouth publicity. The entire consumer buying process is not something which works in

isolation. There are lot many factors which affect consumer buying process at several stages. It is

very essential for marketers to consider these factors for converting a prospective buyer into a

real buyer.

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CHAPTER - 4

OBJECTIVES OF THE STUDY

The primary objective of the study is to determine “Consumer Preference for Online Shopping of

Groceries in the town of Puducherry”. In order to study the above objectives in detail the

following secondary objectives have been proposed;

To explore awareness of indbazaar and indbazaar as an online grocery store

To analyse consumers attitude to shop for groceries online

To identify the limitations\ challenges to online shopping for grocery

To evaluate the demographics of the consumer in terms of their preference\non-

preference to online grocery shopping

To make suggestion to the company to grow their business.

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CHAPTER-5

REASEARCH METHODOLOGY

The data needed for the study was collected through the construction of a structured

questionnaire. The collected data was analyzed through statistical tools and data is presented

with the help of tables and charts.

RESEARCH DESIGN

Research is a systematic and rigorous investigation of a situation or problem in order to generate

new knowledge or validate existing knowledge. The research design used for this study was

descriptive research.

DESCRIPTIVE RESEARCH

It refers to a research that provides an accurate portrayal of these studies as means of discovering

a new meaning, describing what exists and determining the frequency with which something

occurs and categorizing information. In short descriptive research deals with anything that can be

counted and studies that has impact on the lives of the people it deals with.

SAMPLE DESIGN

A sample design is a definite plan followed in the study to collect information from a sample in

the population. Quota samplingis a non-probability sampling technique wherein the researcher

ensures equal or proportionate representation of subjects depending on which trait is considered

as basis of the quota.

For example, if basis of the quota is college year level and the researcher needs equal

representation, with a sample size of 100, he must select 25 1st year students, another 25 2nd

year students, 25 3rd year and 25 4th year students. The bases of the quota are usually age,

gender, education, race, religion and socioeconomic status. Thus in this study based on the areas

identified by the company supervisor guiding us in the project 25 students from the following 5

areas were selected. The areas were Lawspet, Jipmer, Providence mall, White Town and Beach

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area. A total of 125 respondents were surveyed with regards to their preference for online

shopping of grocery in the town of Puducherry.

PERIOD OF STUDY

The period of the study was from January to March 2019.

SAMPLE SIZE

The sample size used for the study is 125 respondents.

SAMPLE AREA

The selected respondents of the sample were from areas like Lawspet, Jipmer, Providence mall,

White Town and Beach area.

DATA COLLECTION

The data collected for the study comprises of primary data as well as secondary data.

PRIMARY DATA

Primary data is information that you collect specifically for the purpose of your research project.

An advantage of primary data is that it is specifically tailored to your research needs. In this

study primary data was collected from the respondents with regards to preference for online

grocery shopping in the town of Puducherry. A well-designed questionnaire was circulated

among the respondents and the filled up form were collected from them.

SECONDARY DATA

Secondary data refers to data that was collected by someone other than the user. The secondary

sources used for the study were

Books and journals

Company/ Competitors website

Indbazaar.in Website

In Plant Training at the company

Product Brochures

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Newspapers like Business Line etc..

RESEARCH INSTRUMENT

The research instrument used to collect the survey data was questionnaire. The questionnaire

consisted of multiple choice questions and 5 point Likert scale

STATISTICAL TECHNIQUES USED

The statistical techniques used in the study are percentage analysis, weighted average, Likert

Scaling and SPSS software 16.0 for cross tabulation of data.

RANK CORRELATION COEFFICIENT:

This method of finding out covariability or the lack of it between two variables was developed

by the British Psychologist Charles Edward Spearman in 1904. This measure is especially when

quantitative measures for certain factors (such as in the evaluation of leadership ability or the

judgement of female beauty) cannot be fixed, but the individual in the group can be arranged in

order thereby obtaining for each individual a number indicating his (her) rank in the group.

Spearman’s rank correlation coefficient is defined as:

R=1-6∑d2

𝑛(𝑛2−1)or 1−

6∑d2

𝑁³–𝑁

Where R denotes rank coefficient of correlation and D refers to the difference of rank between

paired items in two series. If r is +1 there is strong correlation and if -1 there is negative

correlation. If it is greater than 0.7 then correlation is strong and if less than 0.3 the correlation is

very low or weak.

GRAPHICAL TECHNIQUES USED

The graphical technique used was bar chart analysis.

33

CHAPTER-6

DATA PRESENTATION & ANALYSIS

This chapter presents the data tabulation and analysis performed on the data collected for this

stud on “Consumer Preference for Online Shopping of Groceries in the town of Puducherry”

TABLE:1AWARENESS OF INDBAZAAR

Awareness No of respondents. Percentage of respondent(%)

Yes 51 41

No 74 59

Total 125 100

INFERENCE:

The above table 1 and figure 1 shows the level of awareness of online grocery store

indbazaar in the areas surveyed in the town of Puducherry. It is seen that

59% of the respondent were not aware of indbazaar while

41% of the respondents were aware of indbazaar –an online grocery retailer in the town of

Puducherry.

34

FIG: 1 AWARENESS OF INDBAZAAR

41%

59%

Percentage of Respondents (%)

Yes No

35

TABLE 1.1 AREAWISE AWARENESS OF INDBAZAAR

Area Awareness of Indbazaar Total

Yes(%) No(%)

Lawspet 13(52) 12(48) 25

Beach 8(32) 17(68) 25

Jimper 6(24) 19(76) 25

White Town 13(52) 12(48) 25

Providence Mall 11(44) 14(56) 25

Total Area 51(41) 74(59) 125

Inference:

The above table1.1 shows the area wise awareness of Indbazaar in the town of Puducherry.

It is seen that highest awareness of 52% is seen in areas like Lawspet and White town and less

awareness was seen among respondents in Jimper.Highest unawareness was seen in Jimper and

Beach area.

36

TABLE:2 PLACE OF PURCHASE OF GROCERY

Place No. of respondents Percentage of respondents

(%)

Online grocery store

11

8

Supermarket

82

66

Online grocery & Supermarket

20

16

Others

12

10

Total

125

100

INFERENCE:

Table 2 and figure 2 shows the place preferred for purchase of groceries among the respondents

of Puducherry. It is seen that an overwhelming 66% of the respondents purchase from supermarket

16% purchase from online grocery supermarket

10% purchase from others and 8% purchase from online grocery store.

So the study shows a very low adoption of purchase of groceries from online stores. However majority

prefer to purchase from supermarket.

37

FIG: 2 PLACE OF PURCHASE OF GROCERY

8

66

16

10

Online Grocery Store

Supermarket

Online and Supermarket

Other places


38

TABLE :3FREQUENCY OF ONLINE GROCERY SHOPPING

Frequency No. of respondents Percentage of respondents

Monthly 29 23

Few months 17 14

Only one 18 14

Special occasion 20 16

I never do grocery shopping

online

28 22

Weekly 10 8

For nightly 3 3

Total 125 100

INFERENCE

Understanding the frequency of purchase of online grocery shopping will help indbazaar

to understand the behavior of consumer in general and online grocery shopping in specific. The

above table 3 and figure 3 shows the frequency of online grocery shopping and it is seen that

23% of the respondents purchase groceries online on a monthly basis

22% of the respondents never do online grocery shopping

14% of the respondents have done online grocery shopping every few once

16% of the respondents have done on special occasions

8% do weekly and 3% do fortnightlyThus we see an equal number of respondents who have

done online grocery shopping and also who have never done online grocery shopping

39

FIG: 3 FREQUENCY OF ONLINE GROCERY SHOPPING

23

14

14

16

22

8

3

0 5 10 15 20 25

Monthly

Few Months

Only Once

Special Occasion

Never do Online Grocery Shopping

Weekly

Fortnightly


40

TABLE4: REASONS FOR GROCERY SHOPPING ONLINE

Reason No. of respondents Percentage of

respondents(%)

My preferred super market is far

8

7

I need not carry heavy bags

20

16

My local store does not meet my

needs

10

8

It helps to buy healthy food

7

5

I work, so online is comfortable to

deliver goods at a time suitable forms

5

4

I do no drive \own a vehicle

getting to local store is difficult

2

1

Low price at best offers 43

35

I prefer online shopping for online payment

6

5

Others

24

19

Total

125

100

41

INFERENCE:

The above table 4 and figure 4 shows reasons if any for doing online shopping for

grocery

35% of the respondent many shop online for grocery due to “low price and best offers”

16% state their reasons as “I need not carry heavy bags”

19% state their reason as other factors

8% state their reason as “my local store does not meet my needs”

7% state their reason as “my preferred supermarket is far”

5% state their reasons as “purchase of healthy food” and for “online payment”

The other reasons were in very less agreement by the respondents. Thus the low price and deals

are a major attraction for shopping online for grocery.

42

FIG: 4 REASONS FOR ONLINE GROCERY SHOPPING

Percentage of Respondents (%), 19

0 5 10 15 20 25 30 35 40

My preferred super market is far

I need not carry heavy bags

My local store does not meet my needs

It helps to buy healthy food

I work, so online is comfortable to delivery goods at asuitable time

I do not drive/own a vehicle so getting to locals storeis difficult

Low price and best offers

I prefer online shopping for online payment

others

Percentage of Respondents

43

TABLE 5: ONLINE GROCERY SHOPPING

Reason

No. of respondents

Percentage of respondents(%)

Online shopping helps to control

my spending habits.

43

35

Online shopping is quicker

\convenient than visiting local

store

47

37

Online is too much difficult I

prefer to visit a super market store.

35

28

Total

125

100

INFERENCE:

The above table 5 and figure 5 shows the major reasons for online grocery shopping and it seen

that

37% consider the convenience as the major reason

35% consider that online shopping helps to control their spending habit

28% consider that in sit to a supermarket is much preferred than online shopping for grocery.

Thus a majority state that the major reason for online shopping of grocery is mainly convenience and its

ability to control our spending habits.

44

FIG 5: ONLINE GROCERY SHOPPING

35

37

28

0

5

10

15

20

25

30

35

40

Online shoppinghelps to control my

spending habits

Online shopping isquicker andconvenient

Online is difficultand I prefer to visit

a supermarket

Pe

rce

nta

ge o

f R

esp

on

de

nts

(%)

Opinion on Online Shopping


45

TABLE6: MODE OF ORDER PICK UP (WHATSAPP AND PHONE CALLS)

Grocery store No of respondents Percentage of respondents

Vijaya Ganapathy 42 24

Nilgris 36 20

Birla more 16 9

Indbazaar 18 10

Big bazaar 11 6

Amazon panty 23 14

Others 30 17

Total 176 100

Inference:

Table 6 and figure 6 show the respondents awareness regarding some of the major grocery

retailers in the town of Puducherry and their facility provided to take orders for grocery. The table 6 shows consumers awareness regarding the mode of order pick through Whatsapp/ phone orders.

24% of the respondents believe that Vijaya Ganapathy uses the whatsapp / phone orders mode

20% of the respondents believe that Nilgris stores provide this order mode

17% of the respondents believe that other local stores use this mode

14% of the respondents believe that Amazon pantry uses this mode

10% believe Indbazaar uses this mode

9% believe Birla more uses their mode

6% believe big bazaar uses this mode

Thus we can see that majority feel Vijaya Ganapath stores, Nilgris and their neighborhood stores follow the mode of whatsapp/ phone order for grocery order pick up.

46

FIG: 6 MODE OF ORDER PICK UP (WHATSAPP/PHONE CALLS)

0 5 10 15 20 25

Vijaya Ganapathy

Nilgris

Birla More

Indbazaar

Big Bazaar

Amazon Pantry

Others

24

20

9

10

6

14

17

Percentage of Respondents

Gro

cery

Sto

re


47

TABLE :7 AWARENESS OF GROCERY STORES

Glocery stores No of respondents Percentage of

respondents(%) Vijaya Ganapathy 50 28

Nilgris 37 21

Biral more 7 4

Indbazaar 18 10

Big bazaar 25 14

Amazon pantry 23 12

Others 19 11

Total 179 100

Inference:

An understand of the consumer awareness of grocery stories in the town of puducherry will help

Indbazaar to know to what extent people are aware of it as a supermarket for grocery purchase. It is seen

from table 7 and figure 7 that

28% are aware of Vijaya Ganapathy stores

21% are aware of Nilgris

14% are aware of Big Bazaar

11% are aware of other stores in the town

10% are aware if Indbazaar

4% are aware of Birla more

Thus Vijaya Ganapathy stores and Nilgris enjoy greater awareness as a grocery store in the town of

puducherry.

48

FIG: 7 AWARENESS OF GROCERY STORE

0 10 20 30

Vijaya Ganapathy

Nilgris

Birla More

Indbazaar

Big Bazaar

Amazon Pantry

Others

28

21

4

10

14

12

11


Gro

cery

Sto

re

Percentage of Respondents(%)

49

TABLE:8 STORE OF PURCHASE OF GROCERY

Retail store No of respondents Percentage of respondents

(%)

Vijaya Ganapathy 60 32

Nilgris 34 18

Birla more 18 10

Indbazaar 8 4

Big bazaar 20 11

Amazon pantry 27 15

Others 19 10

Total 186 100

Inference:

The above table 8 and figure 8 shows the usual stores from where grocery is purchased by the respondent. It is seen that

32% purchase grocery from Vijaya Ganapathy stores

18% purchase grocery from Nilgris,

15% purchase grocery from Amazon pantry

11% from Bigbazaar

10% each from Birla more and other store while

4% had only purchased from indbazaar.

Thus we see that the most favour store for purchase of grocery in Vijaya Ganapathy store and Nilgris while Indbazaar has a very low adoption.

50

FIG: 8 STORE OF PURCHASE OF GROCERY

Percentage of Respondents (%),

10

0 5 10 15 20 25 30 35

Vijaya Ganapathy

Nilgris

Birla More

Indbazaar

Big Bazaar

Amazon Pantry

Others


51

TABLE: 9 PREFERRED TIME FOR DELIVERY OF GROCERY

Delivery Time No of Respondent Percentage of

respondents(%) 9AM-11AM 15 10

11AM-01PM 17 12

01PM-03PM 13 9

03PM-05PM 23 16

05PM-07PM 48 33

07PM-09PM 28 20

Total 144 100

Inference:

The above table 9 and figure 9 shows the respondents most preferred time for delivery of grocery to their door step. This is a very important factor influencing the choice of store for grocery shopping. It is seen that

33% of the respondents prefer 5-7 pm for delivery



12% of the respondents prefer delivery between 11-1pm

10% of the respondents prefer delivery between 9AM-11AM

Thus we observe that the most preferred time of delivery of grocery is 5-7 PM.

52

FIG: 9 PREFERRED TIME FOR DELIVERY OF GROCERY

10

12

9

16

33

20

0 5 10 15 20 25 30 35

9AM-11AM

11AM-01PM

01PM-03PM

03PM-05PM

05PM-07PM

07PM-09PM

Percentage of respondents (%)

Del

iver

y t

ime


53

TABLE 10: USAGE OF INTERNET FOR SHOPPING

Usage status No. of respondents Percentage of respondents(%)

Very often 14 11

Often 31 25

Rarely 53 43

Never 22 18

Sometimes 4 3

Total 125 100

INFERENCE:

The extent of usage of internet for shopping will determine to what extent the respondent

use internet for grocery shopping two now and in the future. Table 10 and figure10 shows that

43% rarely use internet for shopping

25% often use internet for shopping

18% never use

11% very often use and

3% sometimes use

Thus we see that thought 43% rarely use internet for shopping 25% use it often and 11% use it

very often.

54

FIG: 10 USAGE OF INTERNET FOR SHOPPING

11

25

43

18

3

very often

Often

Rarely

Never

Some times



55

TABLE 11: ONLINE PURCHASE INTENTION OF PRODUCTS

Products No of respondents Percentage of

respondents(%)

Yes no Yes No

Cosmetic/ Jewellers 29 95 23 76

Groceries 33 91 26 73

CD’s /book 47 79 38 63

Household furniture 27 99 22 79

Cloths/shoes 71 47 57 38

Toys 46 78 37 62

Total 125 125 100 100

INFERENCE:

Table 11 shows the respondents intention /desire to purchase different types of products

online it is seen that

57% prefer to buy clothes/shoes

38% prefer to buy CD’s /book online

37% prefer to buy toys online

26% prefer to buy groceries online

23% prefer to buy cosmetics/jewellery online

22% prefer to buy furniture online

Thus we can infer the product most preferred to purchase online is clothes /shoes and the least

preferred is cosmetics /jewellery /household furniture and groceries

56

FIG: 11 ONLINE PURCHASE INTENTION OF PRODUCTS

23

26

38

22

57

37

76

73

63

79

38

62

0 20 40 60 80 100

Cosmetics/Jewelers

Groceries

CDs/Book

Household furniture

Clothes/Shoes

Toys


Pro

du

cts

Percentage of respondents(%) No

Percentage of respondents(%) Yes

57

TABLE 12:DECISION CRITERIA FOR ONLINE PURCHASE

Factors Importance level Weighted

Average

Rank

1 2 3 4 5

Delivery time 28 25 22 25 24 2.91 1

Reputation of the

company

22 47 30 11 13 2.52 3

Guarantees 25 24 25 23 15 2.52 3

Security 24 25 23 25 22 2.82 2

Prices 22 14 18 23 24 2.52 3

INFERENCE:

The above table 12 and figure 12 shows the importance given to the various factors

influencing online purchase of goods. It is seen that highest weightage is given to delivery time

and security. The other factors brand image, guarantee and price are only secondary to them.

58

FIG: 12 DECISION CRETERIA FOR ONLINE PURCHASE

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3

Delivery time Reputation ofthe company

Guarantees Security Prices

Weigthed Average

DECISION CRITERIA FOR ONLINE PURCHASE

Weighted Average

59

Table 13:Factors preventing online shopping

Factors Importance level Weighted

Average

Rank

1 2 3 4 5

Waiting to receive

product

27 26 26 29 17 2.86 8

Risk of credit card 34 21 19 17 34 2.96 5

Risk of identity 29 19 28 23 26 2.98 4

Risk of not getting

what I paid for

28 29 19 25 24 2.90 7

Not skilful with

internet

24 20 29 22 30 3.11 3

Cannot touch

products

18 20 29 24 34 3.28 2

Expensive then sold

in retail stores

21 14 26 34 30 3.30 1

I have undergone bad

experience

29 23 23 25 25 2.95 6

INFERENCE:

Table 13 and figure 13 shows the importance given to factors preventing online shopping

habit among the respondents. It is seen that the top 3 ranks have gone to

Rank 1 to expensive than sold in retail stores

Rank 2 cannot touch products

Rank 3 not skilful in the internet

The other reasons have almost been rated the same.

60

FIG: 13 FACTORS PREVENTING ONLINE SHOPPING

0% 20% 40% 60% 80% 100%

Waiting to receive product

Risk of credit card

Risk of identity

Risk of not getting what I paid for

Not skilful with internet

Cannot touch products

Expensive then sold in retail stores

I have undergone bad experience

Fact

ors

pre

ven

tin

g o

nlin

e sh

op

pin

g

Weighted Average

Weighted Average

61

TABLE 14:USE OF ONLINE SHOPPING

Use No of respondents Percentage of respondents

You will know the price 43 34

You can compare prices with

competitors

40 32

You can check the product

availability from your place

32 26

Others 10 8

Total 125 100

INFERENCE:

The above table 14 and figure 14 shows the respondents opinion towards online

shopping. It seen that

34% feel it helps to know the prices

32% feel it helps to compare prices

26% feel it helps to check product availability and

8% state other reasons

Thus the major factors have been price and companion with competitor price with respect to the

benefits of usage of internet for shopping online.

62

FIG:14USE OF ONLINE SHOPPING

34

32

26

8

0 10 20 30 40

you will know the price

You cancompare priceswithcompetitors

you can check the productsavailability from your place

others


Use


63

TABLE 15:GENDER DISTRIBUTION

Gender No of respondents Percentage of

respondents (%)

Male 70 56

Female 54 44

Total 125 100

Inference:

Gender is a major variable influencing behaviour of the consumers. It has its ray in the

choice and usage of various types of products. Table 15 and figure 15 shows that

56% of the respondents to this survey were male

44% of the respondents to this survey were female

Thus a good majority of the respondents were male

64

FIG: 15 GENDER DISTRIBUTION

56

44

0 10 20 30 40 50 60

Male

Female


Gen

der


65

TABLE 16: AGE GROUP DISTRIBUTION

Age group (in years) No. of respondents Percentage of respondent

(%)

15-20 10 8

21-30 53 42

31-40 40 32

41-50 21 16

51-60 3 2

60+ 0 0

Total 125 100

INFLUENCE:

The above table 16 and figure 16 shows the age group distribution used in the study. It is

seen that

42% of the respondents were in 21-30 years.





Thus respondents of various age groups were included and the majority were 21-40 years age

group.

66

FIG: 16AGE GROUP DISTRIBUTION

0

8

42

32

16

2

0 5 10 15 20 25 30 35 40 45

Age Group(in years)

15-20

21-30

31-40

41-50

51-60

60+


Age

Gro

up

(in

ye

ars)

Series2

Series1

67

TABLE 17: EDUCATION DISTRIBUTION

Education level No. of respondents Percentage of respondents

(%)

UG degree 62 50

PG degree 32 26

Ph.D. 14 12

Others 15 12

Total 125 100

INFERENCE:

The education of the respondents has an inference on the consumer attitude, life style and

achievements. The above table 17 and figure 17 shows that

50% of the respondents were having UG degree

26% of the respondents were having PG degree

12% of the respondents were having Ph.D.

12% of the respondents

Thus majority of the respondents were having UG degree

68

FIG: 17 EDUCATION DISTRIBUTION

50

26

12

12

0 10 20 30 40 50 60

UG Degree

PG Degree

PhD.Degree

Other Qualification


Edu

cati

on

leve

l


69

TABLE 18:OCCUPATION DISTRIBUTION

Occupation No. of respondents Percentage of respondents

(%)

Government services 32 26

Private services 41 34

Business 8 6

Others 42 34

Total 125 100

INFERENCE:

Occupation is an important demographic variable that influence consumer behaviour. It is

seen from table 18 that

34% were in private services

34% were doing other occupation

26% were is government services and

6% were in business

Thus majority surveyed were in private services/government services

70

FIG: 18 OCCUPATION DISTRIBUTION

26

34

6

34

0 10 20 30 40

Govt.Service

Private service

Business

Others


Occ

up

atio

n


71

TABLE 19: INCOME DISTRIBUTION

Monthly income No. of respondents Percentage of respondents

(%)

10000-20000 50 40

20000-30000 32 26

30000-40000 16 14

40000-50000 8 6

More than 50000 18 14

Total 125 100

INFERENCE:

Income also plays an important role in product choice and purchase. The above table 19

shows that

40% of the respondents surveyed were earning Rs. 10,000-20,000.



14% of the respondents surveyed were earning more than 50,000.

6% of the respondents were earning between Rs. 40,000-50,000.

Thus majority of the respondents included in the study were between Rs.10,000-30,000 of

income group.

72

FIG: 19 INCOME DISTRIBUTION

40

26

14

6

14

0 10 20 30 40 50

10000-20000

20000-30000

30000-40000

40000-50000

More than 50000


Inco

me(

Rs.

)


73

TABLE:20 GENDERWISE FACTORS INFLUENCING ONLINE PURCHASE

Factors Rating by

Male (M)

Rm Rating by

Female(F)

Rf D=(Rm-Rf) D2

Delivery

time

245 4 202 2 2 4

Reputation

of the

Company

259 3 197 3 0 0

Guarantee 241 5 188 5 0 0

Security 269 2 194 4 2 4

Prices 299 1 206 1 0 0

INFERENCE:

Spearman Rank Correlation Coefficient (r) = 1− 6∑d2

n(n2−1)

1− 6×8

5(52−1)

1−48

24×5

1 −48

120 = 1−0.4 =0.6

The above table 20 shows gender wise factors influencing online purchase. To see if there is

correlation in the opinion of male and female respondents Spearman Rank Correlation was used.

The value of r is 0.6 which shows moderate correlation. We can see that men find online

shopping more secure and slow in delivery while women see online shopping less secure but

faster in delivery.

74

TABLE:21 GENDER WISE FACTORS KEEPING YOU NOT TO PURCHASE

ONLINE

Factors Ratin

g by

male(

M)

Rm

Rating by

Female(F

)

R f D=Rm-

Rf

D2

Waiting to

receive product

215 8 164 5 3 9

Risk of credit

card

227 6 184 1 6 25

Risk of identity

255

1

176

3

2

4

Risk of not

getting what I

paid for

236

4

127

8

4

16

No skilful with

internet

226 7 162 6 1 1

Cannot touch

product

253 2 183 2 0 0

Expensive then

sold in retail

stores

235 5 157 7 2 4

I have

undergone bad

experience

245 3 169 4 1 1

75

INFERENCE

Spearman Rank (r) = 1− 6∑d2

𝑛(n2−1)

Correlation Coefficient

1− 6×59

8(82−1)

1−354

8×63 =1−

354

504

=1−0.7

= 0.3

The above table 21 shows gender wise factors keeping out respondents from shopping online.To

see if there is correlation in the opinion of male and female respondents Spearman’s Rank

Correlation was used.

The value of r is 0.3 which is very low correlation. We can see that men find risk of identity a

big problem and women find risk of credit card a big problem. Another point is women

considered the risk of not getting what they paid for during online purchase as a problem than

men. Also men consider waiting to get the product as a problem than women.

76

CHAPTER - 7

FINDINGS OF THE STUDY

On the basis of the data analysis and presentation of the data collected for their study on

‘‘Consumer Preference for online shopping of groceries’’ in the town of Puducherry, the

following have been the major findings

1. The study shows that out of 125 respondents surveyed in the various areas of Puducherry

59% are aware of indbazaar and 41% were not aware of indbazaar

2. An overwhelming majority of the respondents purchase their household grocery from

supermarket only (66%) while purchase from online grocery store is 8%. 16% prefer a

combination of supermarket and online store while 10% prefer other places/stores

3. Even though 23% of the respondents purchase their grocery online at a frequency of a

month an equal percentage of 22% of the respondents never shop online for grocery

while it is also seen that 16% purchase online during special occasion.

4. The major reason for purchase of grocery online is due to the best prices and offers given

by the online store. The reason of no need to carry heavy shopping bag is also expensed

by respondents.

5. One of the major reasons for grocery shopping online is convenience and it help to

control their spending habits.

6. The customers of grocery stores in Puducherry believe that order pick up through

whatsapp and phone call is offered mostly by Vijaya Ganapathy stores and Nilgris than

the others.

7. The grocery stores most aware was Vajaya Ganapathy stores (28%), Nilgris (21%) while

indbazaar enjoyed an awareness level of only 10%

8. A big majority of the respondents seen to buy their groceries from Vijaya Ganapathy

stores (32%) Nilgris (18%) Amazon Pantry (15%) while Indbazaar in only 4% .

9. The most preferred time for delivery of grocery in 5-7 PM followed 7-9 PM.

10. The study clearly shows that respondents usage of internet for shopping is only rare

(43%) while 25% have said they do it often.

77

11. The goods like to purchase online in clothes/shoes 71% while least preferred is grocery

and household furniture (27%)

12. Consumers of online shopping give more importance to delivery and security while

shopping online

13. The reasons which prevent the consumer from shopping online are mainly goods are

expensive online cannot touch there goods and not skilful on the internet.

14. The respondents feel that online shopping in useful because of comparing price with

competition and we will know the various prices.

15. The study included more male respondents (56%) than female respondents (44%)

16. The majority of the respondents surveyed were in the age group of 21-40 years.

17. A big majority (50%) of the respondents were having only UG degree.

18. The respondents were mostly (34%) employed in the private sector.

19. The majority of the respondents were in the income group of Rs.10,000to Rs.30,00

78

CHAPTER-8

LIMITATIONS OF THE STUDY

The study on Consumer Preference for online shopping of groceries in the town of Puducherry”

with specific reference to Indbazaar faced the following limitations.

The sample size was only 125 in a town with a population of around of 13 lakhs.

Only a few areas like Lawspet, White Town , Beach, Providence Mall and Jipmer were

covered.

There may be bias in the respondent answers.

There may be bias in the enumerator way of asking the questions.

The questionnaire was based on a limited literature review.

There are some limitations in the demographic profile of the respondents included in the

study.

Respondents cooperation to the survey was also limited.

79

CHAPTER-9

SUGGESTIONS

Based on the data analysis /presentation and findings of this study on “Consumer Preference for

Online Shopping of Groceries in the town of Puducherry with specific reference to Indbazaar” –

the following suggestions are presented;

Indbazaar has launched a physical supermarket in the town of Puducherry and it also

provides online grocery shopping. Though it is not a new concept. It is a new concept in

Puducherry. Because it is an early starter in Puducherry, it should take marketing

strategies to make its services aware to the consumers in Puducherry before big players

like Bigbasket enter the town.

As prices and deals are the major attraction of the consumers to online shopping of

groceries, Indbaazaar should regularly offer new combinations of prices and deals.

As location of the store plays a major role in the success of a retail store like Indbazaar –

the company should make its physical presence felt and its services available through

selection of an attractive location for its physical retail store. The present store at

Kamaraj Salai opposite to Le Royal Park is highly visible.

Promotions are the biggest pullers to online grocery shopping and hence the company

should launch promotions on a fortnightly and monthly basis like;

- Combo offers

- Loyalty Coupons

- Buy 1 Get 1 Free

- Buy 2 Get 1 Free

- Weekly offers on special categories like hair care brand/ Oral Care brand offer/

Beverages brand/ Fruits/ vegetables/ Oil etc…

- Womens day offer/Krishnajayanthi offer/Onam offer

- Social media contests like Fitness/Beauty/Intelligence etc..

- Summer Vacation offers on Toys/Ice Creams etc..

80

Physical Evidence Improvement: The present store has a good collection of products but

the physical store set up can be enhanced by giving more space for movement of

customers inside the store.

Inform prices and deals to customers through Whatsapp.

Engaging consumers through social media contests/ information.

Customer friendly services should be provided through regular motivation and training of

the staff employed.

Having a celebrity Brand Ambassador like Film/ TV/ Local stars

81

CHAPTER 10

CONCLUSION

Over the years the grocery stores has seen many changes. It all started as a local kirana store or

mom and pop stores. Then it grew to department stores, cost price shops, supermarkets,

hypermarkets to today online grocery stores. Though Pondicherry being a small town has seen

these changes a little slow, but the new models are easily accepted by the consumers.

In this regard this study on consumer preference for online grocery stores in the town of

Puducherry with specific reference to indbazaar showed that though the major store choice for

purchase of grocery among the respondents surveyed was supermarket (66%), some of the

respondents do buy groceries online about 8% and 16% do a combination of online and offline.

The major attraction to online purchase has been deals and offers. Consumers also find online

shopping of groceries convenient and a method of control of their spending habits. However they

too find that these goods are expensive and you cannot touch them but still many do not prefer

online mode as they are not skilful with the internet.

In the case of indbazaar, we see that respondents have heard the name but cannot associate it

with a supermarket /online grocery store in the town of Puducherry. It also has a physical store

and offers online grocery service too. The less preference to indbazaar may be because it is a

new growing brand and started from Puducherry. Consumer awareness and preference is more

for very old local brand Vijaya Ganapathy stores and also for early national player Nilgris. Of

late big brands like Big Bazaar, Birla more have entered Puducherry and consumers do have

knowledge of this and also show preference to them brands Amazon Pantry an online grocery

store from Amazon also seems to have Consumer acceptance.

Finally as the use of internet and mobile is fast increasing in our country and in Puducherry and

big e-commerce brands and food delivery business like Swiggy, Zomato, and Uber eats are

making their way into the town and consumer are using them too. It will not be long when online

grocery major like Bigbasket, Grofers, reliance fresh or nature’s barked open up their services to

Puducherry.

Hence Indbazaar has started its business in Pondicherry much before these services can start

and as the study shows that the earlier business are much preferred when competition is high.

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Indbazaar should create more awareness of its presence and establish itself as a brand for

online grocery store to leverage form the changing behavior of consumer towards online

shopping.

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CHAPTER 11

APPENDIX

11.1 QUESTIONNAIRE

CONSUMER PREFERENCE FOR ONLINE SHOPPING OF GROCERIES

IN THE TOWN OF PUDUCHERRY

(Please tick what is applicable)

1. Do you know Indbazaar / Indbazaar online Supermarket? a)Yesb)No

2. Where do you buy your groceries from?

a) I buy from an online grocery store

b) I go to a super market

c) I buy from online grocery retailer and super market store

d)others _ _ _ _ _ _ _ _ _ _ _ _ _

3.How often do you do your grocery shopping online?

a) Monthly b) every few months

c)only once d) on special occasion

e) I never do grocery shopping online

f)weekly g) fortnightly

4. Rate your reasons for grocery shopping online?

(Tick all that apply)

a) My preferred Super Market is far

b) I need not carry heavy bags

c) My local store does not meet my needs

d) It helps to buy healthy food

e) I work, so online is comfortable to deliver

goodsat a time suitable for me

f) I do no drive/own a vehicle getting to local

store is difficult

g) Low prices & best offers

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h) I prefer online shopping for online payment

i) Others _ _ _ _ _ _ _ _ _ _ _ _ _ ___________

5. Tick the reason for online grocery shopping.

a) Online shopping helps to control

my spending habits

b) Online shopping is quicker/convenient than

visiting local store

c) Online is too much difficult I prefer to

visit a super market store

6. Which of the following grocery retailers take orders through whatsapp or through phone

calls?

a)Vijaya Ganapathy e) Big bazaar

b) Nilgris f) Amazon pantry

c) Birla More g) Others _ _ _ _ _ _ _ _________

d)Ind Bazaar

7. Which of the following grocery retailers you are aware of?

a)VijayaGanapathy e) Big bazaar

b)Nilgris f) Amazon pantry

c)Birla More g) Others _ _ _ __ _____________

d)Ind Bazaar

8. Which of the following grocery retailer you have purchased from?

a)VijayaGanapathy e) Big bazaar

b) Nilgris f) Amazon pantry

c) Birla More g) Others _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

d) Ind Bazaar

9. Which time of the day would you prefer to have your grocery delivery?

a) 09 am – 11 am d) 03pm – 05pm

b) 11am – 01 pm e) 05pm – 07 pm

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c) 01pm – 03pm f) 07pm – 09pm

10. How often you use internet for shopping?

a) Very often d)Rarely

b) Often e) Never

c) Some time

11. Assuming that you intend to contact online shopping, which of these purchases would you

make in the internet?

Yes No Yes No

a) Cosmetic/Jewelers b) Groceries

c) CD’s/Book d) Household furnitures

e) Cloths/Shoes f) Toys

12. Importance of the following factors in your decision to purchase goods from online stores

1 – less important to 5 – very important

Factors 1 2 3 4 5

Delivery time

Reputation of the Company

Guarantees

Security

Prices

13. Importance of this factors in keeping you not to shop on the internet

Factors 1 2 3 4 5

Waiting to receive product

Risk of credit card

Risk of identity

Risk of not getting what I paid for

Not skilful with internet

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Cannot touch products

Expensive then sold in retail stores

I have undergone bad experience

14. How helpful is online shopping?

a) You will know the price b) You can compare prices with competitorsc) You can check the

product availability from your place

d) Others__________________________________

DEMOGRAPHIC DETAILS

15.Gender .

Male Female

16.Age group (in years)

15 – 20 21 – 30

31 – 40 41 – 50

51 – 60 60 +

17.Education level

UG Degree PG Degree

PhD DegreeOthers _ __ _ _ _ _ _ __________

18.Occupation

Govt. Service Private Service

Business Others _ _ _ _ _ _ _ _ _

19.Monthly Income

10,000 – 20,000 20,000 – 30,000

30,000 – 40,000 40,000 – 50,000

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More than 50,000

*********************Thank You*************************

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11.2 BIBLIOGRAPHY

BOOKS

- Statistical Methods by S.P

- Research Methodology by

- Marketing Management by

ONLINE JOURNAL REFERENCES

- http://shodhganga.inflibnet.ac.in/bitstream/10603/201737/7/07_chapter%201.pdf

- https://www.researchgate.net/publication/321081881_FACTORS_AFFECTING_ONLIN

E_SHOPPING_BEHAVIOR_IN_SURAT_CITY

NEWSPAPERS

- The Hindu

- The Business line

- Times of India

http://shodhganga.inflibnet.ac.in/bitstream/10603/201737/7/07_chapter%201.pdf

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