Online shopping is accessible to the customer for 24 hours and 365 days in a year. That’s a small number, even for an embryonic technology. Online grocery shopping allows you to choose exactly what you want without having to put up with any pressure or breach of privacy. Major advantages and disadvantages related to online shopping? ONLINE GROCERY RETAILERS..... 6 BUSINESS MODELS ... India is currently sixth-largest in world with grocery shopping being expected to rise form $383 billion a year to $1 trillion by 2020, as reported by Retail Consultancy Technopak. Analysis of the responses of the primary research conducted helps in deriving on any solution as well as it helps in providing the recommendations to the Miou Co. Ltd. for retaining and acquiring new customers as well as marketing implications. Internet shops make life of customers more comfortable but at the same time cost associated with opening of internet shops are also high. do online shopping because they are less aware of the technology. P a g e | 19 CHAPTER 6 FUTURE PLAN AND CONCLUSION 6.1 Future Plan : Want to Increase facilities of this project. It is a growing part of retail. Findings are as follows: Almost all the respondents were comfortable with online shopping format because of high internet penetration. Our academic experts are ready and waiting to assist with any writing project you may have. If offline channels wait any longer to make their online presence known, they will be left behind in the foreseeable future as the domain of online grocery delivery is set to make it big in the upcoming years. These are some of the major benefits which are reaped while starting an online shopping portal as compared to starting of traditional shops. That compares unfavorably to the 18.9% of apparel and 10% of homewares spend made digitally. Online grocery shopping may have unique foods or equipment that your local grocery store doesn’t have. Shopping online is just like heading out to the store. The environment for focus discussion was artificial as it was conducted through telephone (Kollock, 2004). Do you have a 2:1 degree or higher? It is very easy for the customers to shop on the online shopping website of the brand which is known to them and they have even used the product by purchasing it from traditional store. Shopping online allows access to merchandise sold world wide. To match with the changing patterns of buyers, Miou Co is planning to open an online shopping website for its grocery products. Online shopping vs in store shopping is a debate that became prevalent over the past few years, mostly due to the advent of online stores. JD.com, China’s largest online retailer, has seen sales of common household staples quadruple over the same period last year. If you are a shopper who writes out a grocery list and sticks to it, online shopping may be more expensive for you. Thus one of the national supermarket chains in South Korea came up with an idea of selling grocery products on the go to the customers through mobile application. Through internet a person can have its presence at any corer of the world. In the era of internet and globalization, almost every country is present in the virtual world but the online ecommerce presence is also dependent upon the type of product to be sold and the characteristics as well as buying pattern of the prospective customers. The customer also checks about the verification as well as credibility of the online shopping portal. Shopping online is about to explode. The company should come up with a marketing campaign for the website to attract the customers to the website. The internet has made online grocery shopping practically easy and fun. However, the significant point is that digital grocery is becoming more accessible and increasing numbers of consumers are willing to give it a go. Thus it can be said that customers feel comfortable if the corporate name is a well known name in the country and thus the credibility issues are properly captured (Khare & Inman, 2006). VAT Registration No: 842417633. In a quest to fulfill their grocery shopping needs, it has been found that consumers shop in different types of shops, according to Deloitte’s 2013 American Pantry report. The conventional ways of getting your grocery needs are becoming obsolete and the advantages of getting them online far outweigh any opinion to the contrary. Company Registration No: 4964706. According to Orian Research, the global online grocery market would grow with a CAGR of 23.7 % in the period of 2020- 2025. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. This increases the profit margin of the online shopping portals several folds when compared to the traditional stores and also the breakeven is reached at faster rate. Conclusion Overall online grocery shopping experience is not just convenient but also encourages savings. In fact the customers should also verify whether the product being sent by the company is same as described in the website else they will end up paying higher cost for a local material made product. This paper analyzed the different issue of online shopping. Customer buying behavior is composed of the propensity of the customers to buy products online. Consequently if a company whether new or established is able to show case its products and services through clear a outline and its online activities advertise the services offered and products offered through their online service then there … Despite ‘good old fashioned grocery store shopping’ having a huge advantage of cultural inertia, it turns out that in general, having meal kits delivered and cooking them at home is a clear winner both in terms of actual cost and in the amount of time spent. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. An online shopping system that permits a customer to submit online orders for items and/or services from a store that serves both walk-in customers and online customers. Major Players of the Grocery Industry. Why is … Online shopping has become an increasingly common staple of life in the 21st century. These are the type of interviews which are conducted to have confidential, secure and personal information regarding the research objective (DeVellis, 2003). For shopping online, they just need to choose the article they want and pay online, and then shopping is finished. These questions are relevant to the research objectives. The major marketing implications identified by the research are: The marketing efforts should focus on building the brand name and brand awareness among the customers as trust is one of the prerequisite of online shopping. As these can be difficult to get in mainstream stores, it’s not surprising that people turn online to find what they need. 1st focus group discussion happened between people from age 18-25 years, 2nd happened between 26-40 years and 3rd discussion happened with people above age of 40 years. And yet, online penetration of grocery shopping lags far behind other sectors. Online stores are highly competitive with other stores, which drives prices down. This report will majorly deal with the thorough analysis of the customer traits and also the perception of these customers towards online grocery shopping. We are not talking about planning a vacation or dining in a fancy, posh restaurant; we are talking about something that needs to be done on a routine basis. According to the findings, the company should definitely launch the online shopping portal. In this report the research objectives can be identified as: To know the customer perception towards online shopping of grocery items. Online Shopping continues to grow, and it seems like it won’t be slowing down anytime soon. Online grocery shopping has enjoyed strong growth and it is predicted this channel will continue to grow exponentially in the coming years. The market research tools being employed in this report is focused group discussion and depth interviews to know the customer characteristics as well as buying behavior. The number of people grocery shopping less than five minutes from their home has more than doubled over the last 20 years, increasing from 17% in 1980 to 42% in 2006. This will help you manage what you buy every week or every month. But the disadvantages in case of online shopping are security issues, credibility of the product offered. The major chunk of the money invested in opening a traditional offline shop is invested in acquiring land and developing of shop and its interior design. They want to save time wherever it is possible. Last year, some 23.4% of all consumers who shopped for food tried an online service. To answer your questions, How can we changed the customers mind moving them from local grocery purchasing method to online grocery method? While starting up an online grocery store, you might have to consider a hell lot of things. Check to see if your shopping list items will automatically be included in your cart the next time you shop. Why is this number so low? In the focused group discussion, there is a moderator who presents the questions which needs to be discussed in focus group. Are your products visible when consumers are searching? Grocery shopping is a routine task; it is generated from need, and not desire, or luxury for that matter. In developing countries like Bangladesh, India, Pakistan, Thailand, Philippines and many under developed countries, the penetration of internet is very less (Ridgeway & Johnson, 2000). Some of the major parameters which have been considered as crucial for the success of the online shopping portals are discussed in detail as follows (Loken, Kim & Monga, 2006): Customer Buying Behavior: This is the most important and impactful parameter which is part of the decision of opening of an online shopping portal as end customers are the persons who will earn the business and revenues. The market research was conducted by both the methods i.e. b. The availability of online stores give you the freedom to shop at your own pace and convenience. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. First, food is largely needs-based, and many purchases have a degree of immediacy attached to them. Respondents were given ample amount of time to reply to the questions and forming their opinions. (Kalakota and Whinston 1997) The global market for online grocery retailing remains at a relatively early stage of development in many parts of the world. This is a highly important parameter which is utilized by the marketers for segmentation of the target market. However, food and beverage firms need to be aware that some parts of the market are migrating more rapidly to digital than others. The top reason for not ordering via voice is that the products cannot be seen. Let us know using the comments section – what are the extra benefits of online grocery shopping or grocery shopping online on a budget in comparison to purchasing grocery from a traditional grocery store? In terms of cash value, that amounts to a whopping $133.8 billion. Shopping convenience is a big factor for the united states and UK consumers but this isn't limited to the united states or the UK markets only as even in Japan, online shopping has seen increasing growth rates, with shopping convenience as the greatest factor motivating consumers to do online shopping … This report presents the market research of buying patterns and consumer traits of customers with respect to online grocery shopping. The online shopping system presents an online display of an order cut off time and an associated delivery window for items selected by the customer. Retailers of all types are expanding product offerings, adding in-store pickup, free shipping and experimenting with social media. Online shopping has become a popular shopping method ever since the internet has declared a takeover. It is popularity can be credited to the fact that convenience highly valued in our world today. There are many advantages for the companies to get involved in the ecommerce and online shopping without having physical presence (Thoits & Virshup, 2007). These gateways provide secure form of transaction of money from one account to another. The major benefit is that respondents don’t have to visit physically for buying even a single item as well as they can devote saved time to do other beneficial activities. As a direct result of retail and e-commerce combining efficiently, online retailers grew in popularity all around the world. Online grocery shopping market share As far as online retail goes, food and grocery is one of the less developed sectors, with a relatively meager 5.5% of all spending being made online. Online shopping can be an excellent resource for those looking to expand their purchasing options and save money. Grocery ecommerce. Why would you prefer or not prefer shopping grocery products through website? Coupon codes—like the ones you can get from coupon code sites —are also extremely popular when shopping online. According to a Deutsche Bank Securities report, only 3% of people shop for groceries online, w hereas approximately 22% of apparel sales and 30% of electronics sale happens online. The moderator and interviewer are the only persons responsible for the data quality as well as unbiased opinions. If this information is accessed by some other person then he can monetarily harm the user. The buying pattern is highly important to be analyzed properly and without bias so that the feasibility of the portal can be calculated. These are some of the critical parameters which modify the buying behavior pattern of the customers. This, along with increased consumer demand, will spur the market to higher growth. Majorly the responses from all the three focus groups were coherent with slight change. The findings from these interviews were almost same as that of focused discussions but the depth of information is much more in this case. What level of security should be present in the online shopping websites? Thus users should be made aware of these security standards and also all the online shopping websites should strictly follow all the security measures in order to maximize customer wallet share. With the help of various links and tools, we have been able to provide a site which is live and running on the web. This was one of the brilliant strategies to increase the customer wallet’s share and also retaining as well as acquiring new customers (Goebert & Rosenthal, 2002). If you are an impulse buyer and have trouble sticking to your grocery list, or if you struggle to get to the store because of your busy schedule or mobility, online grocery shopping … Some of these advantages are as follows: There is no investment on land and interior decoration while setting up an online shopping portal as compared to establishing a brick and mortar shop. OBJECTIVES: (i) To determine the current state of online grocery shopping, including individuals' motivations for shopping for groceries online and types of foods purchased; and (ii) to identify the potential promise and pitfalls that online grocery shopping may offer in relation to food and beverage purchases.DESIGN: PubMed, ABI/INFORM and Google Scholar were searched to It is popularity can be credited to the fact that convenience highly valued in our world today. The research will mainly analyze the customer buying behavior and perceptions towards online shopping. Respondents are unsure whether they should respond honestly or they should say whatever moderator wants to hear. Online shopping is a process whereby consumers directly buy goods, services etc. An online grocery store definitely has good potential. Almost everyone has an opinion that they will opt to buy only packaged products from online grocery store because they don’t want to stay in billing queues and want to spend their time in other recreational activities. What’s more is that many shoppers find online food shopping more difficult than walking around a shop and putting things in a cart. Despite ‘good old fashioned grocery store shopping’ having a huge advantage of cultural inertia, it turns out that in general, having meal kits delivered and cooking them at home is a clear winner both in terms of actual cost and in the amount of time spent. This is roughly 30% higher than the basket size for physical grocery shops. It never happens that any customer will use internet just for shopping. This project is an attempt to provide the advantages of online shopping to customers of a real shop. Learn more about the pros and cons … This cost of acquiring land is absent in the case of online shopping. Want to add printing option. Looking for a flexible role? The major points which were asked in the interview are as follows: Are you comfortable with online shopping and if yes then what are the categories you prefer. Online shopping is the process consumers go through to purchase products or Services over the Internet. Online grocery shopping is catching up with consumers rapidly. Online shopping saves money. Internet boom has presented shoppers a new address and companies one more point of contact through online shopping. Online shopping. Hence a national supermarket chain which is a known in any given country will definitely have mass audience to follow the online shopping too same as they visit the brick and mortar shop. The cost of land comes in millions if the shop has to make presence at many locations in a country. Internet usage frequency: For the success of online shopping portals, the customers should have high internet usage frequency (Miles and Huberman, 1994). Also the touch and feel factor is missing in this case. Conclusion. Almost all mainstream grocers, and players like Walmart and Target, are now busily developing online grocery services so that they can remain competitive. This is not an example of the work produced by our Essay Writing Service. While purchasing any product on internet, a user has to give information about credit or debit card number or internet banking passwords which are highly confidential information (Couper, 2008). If you’re busy with an online job or online classes then online shopping can sometimes be more convenient. ... online grocery stores but the offline kirana stores are their competitors. There are a number of factors. For example, People of South Korea are considered to be world’s most hardworking people on earth. Conclusion. As consumers we tend to base our grocery shopping around where we live and/or where we work. Thus customers are highly dependent upon the reviews of the customers who are using that product. They are more likely to migrate to well-known brands or to brands that they regularly purchase. Almost every business in developed countries provides an option of buying products through internet because this helps in increasing the customer base. Over 50% of consumers don’t really see the point in voice shopping, while almost 43% think it is more of a hassle than it’s worth. At the bottom of the list is food for special occasions like dinner parties, fresh produce, and meat and deli items. The major influencer for online shopping is lifestyle and the choice of product is very high in online shopping format. Online shopping is considered to be inevitable for the companies which directly deal with customers for their daily needs. In this era of modernization, it is becoming very difficult for the grocery shops to sustain without having an online shopping portal. One of these relates to how successful individual categories are online. Thus these benefits and advantages acts as motivational tools for encouraging online shopping business. To analyze Customer buying behavior when they turn internet shopper. The research is being conducted by the marketing manager of Miou Co. Ltd. which is a national supermarket chain in Australia. These are the major categories which have huge number of customers on internet also (Piercy, 2006). The major ethical issue with focus group discussion is that identity of respondents is revealed and thus this is an impediment for unbiased response (Cooley, 2009). The marketing messages should focus on payment security, information accuracy, fast and safe delivery of products and online shopping advantages. This latter point is now starting to change, however, largely thanks to Amazon’s entry into grocery via its acquisition of Whole Foods. The marketing campaigns should focus on the benefits like 100% secure transaction and fastest way of purchasing grocery while doing other activities. The era of globalization has come into existence largely because of the internet boom and internet is considered to be the fastest way of communication. To be successful and to make money from the online grocery business, you must be capable of delivering items to hundreds of homes in your neighborhood. This market research will clear all the confusions from top managements regarding the feasibility as well as profitability of the online grocery shopping portal. It’s also convenient since you don’t They revealed that it is fairly important to go for e-shopping. Online shopping is a different experience and you can make the shopping creative over the internet as you get used to it. It is a form of electronic commerce. Convenience, price and quality. All the respondents are then free to discuss their opinion in the discussion and the moderator analyses the discussion as well as information. An online shopping aims at making shopping … Online shopping stores are open round the clock of 24/7, 7 days a week and 365 days. Same is the case with the Miou Co. Ltd. which is a national supermarket chain in Australia. Depending upon the analysis, marketing implications are carved which will help the top management in designing the marketing campaigns for success of online grocery shopping website. However the respondent said that they will love to purchase from online shopping if only the price of the product is less than the market. Online shopping is the process whereby consumers directly buy goods or services from a seller in real-time, without an intermediary service, over the Internet. Apart from the convenience and comparison of prices instantly the major advantage of online shopping is home delivery. All work is written to order. Voice ordering has been a big area of discussion over the past year, with lots of predictions stating that this will become one of the main ways in which consumer buy groceries. When it comes to what type of products consumers are buying, staple pantry products – rice, canned goods and the like – top the list. Neil is a founding partner of Prasentia, a firm that works with clients to help them communicate more effectively. Price-comparison websites make deal hunting easier and you can find the online stores with the best reputations by reading reviews submitted by other shoppers. Packaging design is also a more of a driver of purchase in the store than it is online. An online shop, e-shopping, e-store, internet shop, web shop , web store , online store,or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or in a mall. The market research findings suggest to Miou Co. Ltd. that it should open an online shopping website. it can also has its consequences. There are certain more factors which need to be thoroughly checked to analyze and conclude whether it is necessary for the company to have their own online shopping portal. 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