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The analysis of consumers'

attitudes towards online
grocery shopping - A case study
in Indian context
Article (PDF Available)November 2015 with 586 Reads
1st vidhi baheti 2nd Leena Ajit Kaushal

3.66 Management Develo...
Abstract
The concept of online grocery shopping is in its nascent stage. This
study has been carried out to examine the impact of varied attributes on
the consumers' attitude towards online grocery shopping. Perceived
Cost, Convenience, Risk and Enjoyable are the four attributes examined
in this study. The sub-populations of the various demographic traits and
usage behavior will be compared and analyzed to nd out if there is any
signicant difference amongst the attitudes of sub-populations towards
online grocery shopping in India.
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The analysis of consumers attitudes towards online grocery shopping -

A case study in Indian context
Vidhi BAHETI
Ex-MSc student, GD Goenka World Institute, Lancaster University, United Kingdom
Leena Ajit KAUSHAL

Associate Professor of Economics, Amity School of Economics, Amity University, India
Abstract
The concept of online grocery shopping is in its nascent stage. This study has been carried out to examine
the impact of varied attributes on the consumers attitude towards online grocery shopping. Perceived
Cost, Convenience, Risk and Enjoyable are the four attributes examined in this study. The sub-populations
of the various demographic traits and usage behavior will be compared and analyzed to nd out if there
any signicant dierence amongst the attitudes of sub-populations towards online grocery shopping
India.
Introduction
Grocery shopping is considered as one of the most vital and regular task of every household. People
purchase groceries irrespective of the countrys economic condition. People may stop going to vacations,
restaurants, movies, etc but they cannot stop buying the basic necessity goods such as fruits
vegetables, oils, breads, etc. However, in the hustle and bustle of modern lifestyle, people are unwilling
spend their time and energy on purchasing groceries. People associate shopping at grocery stores
tiresome and stressful. In addition to heavy traic and long working hours, many people avoid buying
groceries. Anckar et al. (2002) claim that "consumers generally dislike shopping for groceries; they hav
desire to accomplish the task as fast as possible" (p.215). A survey by Peapod.com, one of the worlds
largest e-grocer showed that individuals dislike grocery shopping as a job next to visiting a dentist.
( Huang and Oppewal, 2006; Wu and Teng, 2011).
Luckily, the emergence and development of e-commerce has opened new ways of doing business. Thus,
online grocery shopping is becoming more and more popular (Ankar et al, 2002; Wu and Teng, 2011).
With the growing Internet connectivity, clientele and rising popularity of electronic shopping,
entrepreneurs have seen the opportunity of opening online grocery stores .Various e-grocers
BigBasket.com, AaramShop.com, et cetera have emerged in Indian online grocery market.
The e-commerce sector of India is small when compared globally but it is growing rapidly. A survey
Internet and Mobile Association of India (IAMAI) revealed that the e-commerce market in India rose
from U.S. $3.9 billion in 2009 to U.S. $12 billion in 2013. Another study by Crisil Research displays
the e-tailing industries in India are expected to grow 50-55% annually. Although, online food and grocer
industry forms an insignicant part of the Rs 2700 crore e-tailing market of India, it is growing
approximately 25 to 30 % year on year. This category will add signicantly to the total online retail
market of India in the next ten years. Thus, it is a great opportunity for businessmen aspiring to open retail
stores online, especially online grocery stores. (The Hindu Businessline, 2014)

www.theinternationaljournal.org > RJSSM: Volume: 05, Number: 7, November 2015 Page

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Literature Review
Robertson (1967) classies innovations as continuous, dynamically continuous and discontinuous.

Critically, discontinuous innovation not only involves the innovation of a new product but also triggers a
significant change in the customers behavior. Online grocery shopping is debatably a discontinuous
innovation (Hansen, 2005), involving a signicant change in behavior (Robertson, 1967): online shoppers
give up the social interaction at supermarkets and the ability to inspect the quality of groceries prior
purchase. For the advancement of online grocery shopping beyond its existing niche size, retailers
only need to understand what makes the customers to change their behavior but also the degree to which
their shopping experience online strengthens the adoption process (Hand et al., 2008). Thus, there
direct relationship between the customers perception of an innovation and its rate of adoption. For
example: Perceived convenience brought by online grocery shopping has a positive inuence on its
adoption by the time-pressed consumers.
Liebmann(1988, p.25) noticed that despite the fact that customers are regularly shopping at more outlets,
these same consumers repeatedly tell us they are time-pressed and want more convenience-oriented and
added value services that will save them time. In reference with the above need for convenience
increasing penetration levels of internet, Huang and Opperwal , 2006 believe that consumers would
welcome the benets oered by online grocery shopping. Since the mid 1990s, researchers have shown
dierent opinions about the suitability of groceries for e-commerce. Some researchers gave their outlook
of grocery shopping to emerge as a big business opportunity (Andersen Consulting, 1998). However, there
are others who are negative about the success of online grocery shopping in the online environment
(Ankar et al, 2002).
The study by Bell et al, (1998) shows that shopping costs comprise of both xed and variable costs.
travelling distance from the customers house to the supermarket, customers loyalty and innate preference
towards a store constitutes xed cost of shopping. While, variable costs are dependent on the customers
shopping list. Transportation costs such as petrol and parking expenditure, and travel time discourage
consumers to purchase from a supermarket and encourage them to purchase goods online (Forman, Ghose
and Goldfarb, 2009; Chntagunta, Chu and Cebollada, 2012). However, majority of the consumers hate
pay premium in the form of delivery fee for everyday necessity products like groceries (Baker, 2000;
Kacen, Hess and Chiang, 2003). A survey conducted by OMD snapshots revealed that about 20 percent
online groceries shoppers deterred to shop online due to the delivery charges. (Anonymous, 2001)
Since the 1960s, the theory of perceived risk has been used to explain consumers behavior.
Researchers have provided various denitions for perceived risk. Perceived risk in electronic shopping has
been dened as a persistent expectation of loss, uncertainty and unfavorable consequences by an online
shopper in planning a specic online purchase of product or service (Forsythe and Shi, 2003; Dowling and
Staelin, 1994).
Couple of risks emerge in online shopping such as the risk of losing money by means of credit card
stealing ( Bhatnagar et al,2000 ; Maignan & Lukas, 1997), or privacy risk which shows the unwillingness
of the customer to give away personal information.( Liebermann and Stashevsky, 2002). A stud
conducted by (Ranganathan and Ganapathy, 2002) revealed that security and privacy factors came
forward to be the most important predictors for distinguishing the high and low purchase intent
purchasers. However, another study by (Swaminathan, Lekowska- White and Rao, 1999) displayed
People
opposing results that the consumers did notwho read
show this concern
much publication alsothe
over read:
transactions security.


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Shopping experience has been assessed by consumers' along two central dimensions (Childers et al, 2001;
Babin, Darden and Griin, 1974) -1) utilitarian value in which consumers are rational, task oriented
desire to obtain utilitarian outcomes; and 2) hedonic value which can be associated with the consumers
need to obtain fun such that the fulllment of a task may not be very essential (Wolnbarger and Gilly,
2001)
Dawon et al. (1990) points out that social interaction oered by shopping is one of the major reasons for
people to go shopping. It has been indicated that shopping at stores is often treated as an opportunity for
people to spend time with their friends or family members and also take pleasure from the social activities
whilst shopping. (Arnold and Reynolds, 2003; Ramus and Neilsen, 2005)
However, few online shoppers do not want to be bothered while they are shopping online. The
technology interface oered online provides them with the convenience to browse for products without
being disturbed by sales people. (Joerding and Meissner , 1998)
Convenience is related to forms of non monetary costs like time, stress and eort and psychological cost
(Aylott and Mitchell, 1998). Study conducted by Morganosky and Cude (2000) state that convenience
and times saving are the two major reasons for the consumers to purchase groceries online. Online
shopping oers greater convenience to consumers as consumers can shop from anywhere at any time
and provides customers with an opportunity to save time by making trips to physical retail stores. Similar
study conducted by Ramus and Nielsen (2005) shows that online grocery shopping relieves the
customers from the burden of carrying heavy groceries home from the supermarket. Aylott and Mitchell
(1998) found crowding and queuing to be the two major stressors when buying groceries at the
supermarket or grocery store. Crowding is not liked by customers as it does not let customers achieve
their task as easily and quickly they like, while queuing adds to the customers level of frustration
they have to waste their time standing in a long queue for checkout. Predictably, shopping online also
has its disadvantages and diiculties. Geuens et al., (2003) report that online shoppers may nd
diiculty in obtaining relevant information about groceries online before purchasing the product.
Additionally, as proposed by Ring and Tigert (2001), many online grocery website are diicult to
navigate around and shop. A study conducted by Raijas (2002) of electronic grocery consumers revealed
that easiness to order groceries might have a positive influence on the consumers preference to select
an e-grocery store. If the customers nd what they are looking for but fail to carry out the transaction,
they are likely to cancel their order (Oderketken-Schroder and Wetzels, 2003).
Methodology
The study follows quantitative methodology. Data was collected by sending online questionnaires to
people, using convenient and snowball sampling. Within the timeframe, questionnaires were lled by 100
respondents and their responses were analyzed by using SPSS software. Independent sample T-test and
one way ANOVA was used to nd out signicant dierences between the attitudes of sub-populations of
demographic traits and usage behavior towards online grocery shopping in India.
The research aims to study the consumers attitude towards online grocery shopping in India
The research objectives for the study are as follows:
1).To determine the impact of Perceived Cost on the consumers attitude towards online grocery
shopping.


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H1a: Cost will be perceived dierently by non-Online grocery shoppers and online grocery shoppers
H1b: Cost will be perceived dierently by customers not aware of online grocery shopping and customers
aware of online grocery shopping.
H1c: Males and Females will perceive cost dierently.
H1d: Single and married customers will perceive cost dierently.
H1e: Unemployed and employed customers will perceive cost dierently.
H1f: Dierent age groups will perceive cost dierently
H1g: Dierent income groups will perceive cost dierently
2). To determine the impact of Perceived Risk on the online consumers attitude towards online grocery
shopping.
H2a: Risk will be perceived dierently by non-Online grocery shoppers and online grocery shoppers
H2b: Cost will be perceived dierently by customers not aware of online grocery shopping and customers
aware of online grocery shopping.
H2c: Males and Females will perceive risk dierently.
H2d: Married customers will perceive risk higher than single customers
H2e: Employed and Unemployed customers will perceive risk dierently
H2f: Dierent age groups will perceive risk dierently
H2g: Dierent income groups will perceive risk dierently
3). To determine the impact of Perceived Convenience on consumers attitude towards online grocery
shopping.
H3a: Online grocery shoppers and non- online grocery shoppers will perceive convenience dierently
H3b: Customers aware of online grocery shopping and customers who are not aware of online grocery
shopping will perceive convenience dierently
H3c: Males and Females will perceive convenience dierently
H3d: Single and married customers will perceive convenience dierently
H3e: Employed and unemployed customers will perceive convenience dierently
H3f: Dierent age groups will perceive convenience dierently
H3g: Dierent income groups will perceive convenience dierently
4). To determine the impact of Perceived Enjoyable on the consumers attitude towards online grocery
shopping.
H4a: Online grocery shoppers and non- online grocery shoppers will perceive enjoyable dierently
H4b: Customers aware of online grocery shopping and customers who are not aware of online grocery
shopping will perceive enjoyable dierently
H4c: Males and Females will perceive enjoyable dierently
H4d: Single and married customers will perceive enjoyable dierently
H4e: Employed and unemployed customers will perceive enjoyable dierently
H4f: Dierent age groups will perceive enjoyable dierently
H4g: Dierent income groups will perceive enjoyable dierently


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Reliability
The internal consistency of the data was measured using the Cronbachs Alpha coeicient. The
coeicient value for scale variables in the sample was above the 0.6, the prescribed value below which
the data lacks internal consistency reliability. (Malhotra and Dash, 2009). Thus, the data collected is
for statistical analysis.
Perceived Cost
The analysis showed that the customers value the oers and discounts oered in online grocery
shopping. As seen in various literatures such as Baker, 2000; and Kacen, Hess and Chiang, 2003,
delivery fee is one of the major reasons for consumers hesitating to purchase groceries online. However,
with the average of 2.48, it is apparent that majority of the people would not mind paying delivery fe
for groceries.
Dierence between online grocery shoppers and non grocery shoppers
No signicant dierence was found between these two groups of shoppers as the p-value is greater than
= 0.10. Therefore, H1a was not supported.
Dierence between customers aware/ not aware of online grocery shopping
It was found that these two groups signicantly diered in one variable: not having to incur travelling
costs to a store as the p value is less than = 0.10.
Therefore, H1b is partly supported.
Furthermore, the means of perceived cost variables was connected with each sub-population of the various
demographic traits like gender, marital status, and employment status.
No signicant dierence was found in the sub populations for all the three demographic traits, gender,
marital status and employment status as the p values are greater than = 0.10.Therefore, hypothesis H1c,
H1d and H1e are not supported.
Dierence between age groups Young Adults, Adults and Older Citizens
One way ANOVA was applied to measure if there is any signicant dierence between the three
groups for perceived cost elements. No signicant dierence was observed in any age groups as p-value
was greater than =0.10. Therefore, H1f was not supported.
Dierence between income groups- No Income, Mid Income, High Income
One way ANOVA was applied to measure if there is any signicant dierence between the three income
groups for perceived cost elements. No signicant dierence was observed in any income groups as
value was greater than =0.10. Therefore, H1g was not supported.
Perceived Convenience
Descriptive Statistics
The mean and standard deviation of perceived convenience variables were analyzed.
The result showed that customers value
Peoplethe
whoconvenience which also
read this publication comes with online grocery shopping,
read:


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most especially not having to stand in the queue at billing counter, carry home all the products by
themselves, less time and the comfort of purchasing at any location and time. This is in harmony with
previous literature by Morganosky and Cude (2000) , Ramus and Nielsen (2005) and, Aylott and
Mitchell (1998).
Dierence between online grocery shoppers and non-online grocery shoppers
The two groups of shoppers diered signicantly in 6 variables as the p-values are less than 0.10.
The 6 variables are expect that shopping online takes less duration of time than going to a physical store
comfort of purchasing at any location and time, value of not having to stand in the queue at the billing
counter, convenience of goods being delivered to the customers doorstep, concerned if the goods wanted
can be easily found and worry if the product information is easy to locate online.
Therefore, H2a is partly supported.
These two groups of customers diered signicantly in two variables namely online shopping takes
duration of time than going to a physical store and not having to stand in the queue at the billing counter,
as the p-values for these variables are less than =0.10.
Therefore, H2b is partly supported.
The means of perceived risk variables were connected with each sub-population of the various
Males and females diered signicantly in one variable namely the comfort of purchasing at any location
and time as the p-value is less than = 0.10. Therefore, H2c was partially supported.
In the same way, it was found that these married and single respondents diered signicantly in
variables namely, worry about the ease of navigating the website or if the goods wanted would be found
easily as the p-value is less than = 0.10. Therefore, H2d was partly supported.
Similarly, it was found that employed and unemployed respondents diered signicantly in two
variables namely online shopping takes less duration of time than going to a physical store and the
complexity of the transaction process online as the p-values are less than = 0.10. Therefore, H2e was
partly supported.
One way ANOVA was applied to measure if there is any signicant dierence between the three age
groups for perceived enjoyable elements. It was found that age groups diered signicantly in three
variables namely; not having to stand in the queue at checkout, convenience of goods being delivered to
the doorstep and worry if the goods wanted would be found easily. With the help of Tukeys post hoc
test, it was found that young adults and adults have diered signicantly in all the three variables as
values are less than =0.10. Adults perceive all the variables significantly higher than young adults.
Therefore, H2f was partly supported.
One way ANOVA was applied and it was found that income groups diered signicantly in thre
variables namely, online shopping takes
Peopleless
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convenience of goods being delivered to the doorstep. With the help of Tukeys post hoc test, it was
found that no income and high income customers diered in one variable namely online shopping takes
less time. Customers with high income perceive this higher than customers with no income. Also, mid
income and high income customers diered signicantly in all the three variables. High income
customers perceive all the three variables higher than the mid income customers. Therefore, H2g was
partly supported.
Perceived Risk
The mean and standard deviation of perceived risk variables were found. The most signicant perceived
by the customers is the quality of the products delivered. So, online grocers should make sure that they
provide customers with fresh groceries. This is in harmony with the previous literature Jarvenpaa &
Todd, 1997; Bhatnagar et al, 2000 where consumers hesitate to buy groceries as they doubt the product
quality.
These two groups diered signicantly in three variables as the p-value is less than 0.10. The variables
are: concerned about the credit card data security, doubt the quality of goods received and worry if
product would perform as expected. Therefore, H3a was partly supported.

The groups diered signicantly in one variable i.e. credit card data security as p-value is less
than =0.10. Therefore, H3b was partly supported.
The means of perceived risk variables were connected with each sub-population of the various
It was found that males and females diered signicantly in three elements i.e., credit card data securit
quality of goods received and concerned whether the right goods would be delivered on time as the
value is less than =0.10. Females perceive this risk higher than males. Therefore, H3c was partly
supported.
Also, married and single customers diered signicantly in three elements i.e., credit card data security,
safety of personal data and concerned whether the right goods would be delivered on time as p-value
less than =0.10. Married population perceives this risk higher than single population. Therefore, H3d
was partly supported.
However, no signicant dierence for perceived risk was observed between the employed and
unemployed customers. Therefore, H3a was not supported.
One way ANOVA was applied and it was found that age groups diered signicantly in three variables
namely; credit card data security, personal data risk and whether the right product would be delivered
the right time. With the help of Tukeys post hoc test, it was found that young adults and older citizens
have diered signicantly in two variables: credit card data risk and personal data risk as p-values are less
than =0.10 . Older citizens perceived both these risks higher than young adults.
Also, young adults and adults diered signicantly in two variables; personal data risk and whether

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right product would be delivered at the right time as p-values are less than =0.10.Adults perceive
both these risks higher than young adults. Therefore, H3f was partly supported
groups for perceived risk elements. No signicant dierence was observed in any income groups.
Therefore, H3g was not supported.
Perceived Enjoyable
The mean and standard deviation of perceived enjoyable variables were found.
The most signicant perceived enjoyable variable in average is that customers expect to nd new
products online.
These two groups diered signicantly on one variable namely; online shopping to be enjoyable as
value is less than =0.10. Therefore, H4a was partly supported.
These two groups diered signicantly on 3 variables as p-values are less than =0.10.
The three variables are: expect online shopping to be enjoyable, expect going to the supermarkets to be
recreational activity and expect to enjoy nding new products online. Therefore, H4b was partly
supported.
The means of perceived enjoyable variables were connected with each sub-population of the various
No signicant dierence was found in the sub-populations of gender and marital status demographics as
p-values are greater than =0.10. Therefore, H4c and H4d are not supported.
However, employed and unemployed respondents were compared on one variable, namely going to
supermarkets to be a recreational activity as p-value is less than = 0.10.
Therefore, H4e was partly supported.
groups for perceived enjoyable elements. No signicant dierence was found between the three age
groups as p-values are greater than 0.10. Therefore, H4f was not supported.

One way ANOVA was applied and it was found that the age groups differed signicantly in one variable
namely- expect to have fun from socializing at supermarkets. To better understand the interrelationship
between the age groups, Tukeys post hoc results were seen. It was found that mid-income and high
income customers diered signicantly in one variable: expect to have fun from socializing
supermarkets and no significance was found between no income and mid income or no income and high
income customers. Customers in thePeople who readgroup
mid-income perceivedalso
this publication thisread:
variable higher than the customers


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in the high-income group category. Therefore, H4g was partly supported.
Conclusion
This research shows that consumers' attitude towards online grocery shopping in India is inuenced by
four factors namely Perceived Cost, Perceived Convenience, Perceived Risk and Perceived Enjoyable.
The existing literature on the various perspectives of online grocery shopping is done in Europe,
Australia but no study has been done in India for online grocery shopping. However, as the concept of
online grocery shopping is in its budding phase in India, it would be benecial to nd out the consumers
attitude towards various aspects of online grocery shopping. This would help the e-grocers to direct their
attention towards those and provide best value to the consumers.
Sample of 100 respondents was collected and the consumers were asked for their demographic traits,
awareness of online grocery shopping and usage behavior of online grocery shopping. Seven hypotheses
were made and tested for each factor to nd out if the attitudes diered amongst the sub-populations
the demographic variables, or usage behavior.
Table 1, 2, 3 and 4 summarizes the studys finding in terms of demographic and usage behaviour effects
for Perceived Cost, Perceived Convenience, Perceived Risk and Perceived Enjoyable respectively
Table 1
Perceived Cost Variables Online Aware Online Gender Marital Employment Age Income
Grocery Grocery Status Status
Shopping Shopping
Concerned about the addional

costs of online shopping
Appreciate not having to incur *
travelling costs to a physical store
Value the discounts and oers
oered in online grocery shopping
Notes: * Stascally signicant dierence (at p<0.10 two tailed), n=100
The ndings for Perceived cost show that there was no signicant dierence among the various
demographic traits of the consumers. However, signicant dierence was found in customers who
aware and not aware of online grocery shopping. This information can be used by marketers to cater to the
dierent attitudes of two individual groups.

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Table 2
Perceived convenience variables Online Aware Online Gender Marital Employment Age Income
Shopping Shopping
Believe that online shopping takes * * * *

less duraon of me than going to
a physical store
Appreciate the comfort of * *
purchasing at any locaon and me
Appreciate the value of not having * * * *
to stand in the queue at checkout
Appreciate the convenience of * * *
goods being delivered to the
doorstep
Worry about the ease of navigang *
the website
Concerned if the goods wanted can * * *
be found easily
Worry if product informaon is *
easy to locate online
Table 3
Worry about the complexity of the
transacon process online
*
Signicant dierences in the perceived risk variables by usage behaviour characterisc and demographic traits
Perceived Risk Variables Online Aware Online Gender Marital Employment Age Income
Shopping Shopping
Concerned about the credit card * * * * *

data security
Concerned about the security of * *
personal informaon
Doubt the quality of goods received * *
Concerned if the right goods would * * *
be delivered mely
Worry if the product would perform *
as expected

Table 4
Signicant dierences in the perceived enjoyable variables by usage behavior characterisc and demographic traits
Perceived Enjoyable Variables Online Aware Online Gender Marital Employment Age Income
Shopping Shopping
Expect online shopping to be * *

enjoyable
Expect going to the supermarkets * *
be a recreaonal acvity
Expect to have fun socializing at *
supermarkets
Expect to enjoy nding new *
products online
The ndings for the other three factors show that, both the usage behavior variables and demographic
traits have their own eect on the dierent elements of the factors. This information can further be used
by various e-grocers or marketers along the course of personalization. Each individual can be dealt with
dierently and more eiciently on People
the basis
who their attitude
read this towards
publication alsothe
read:various elements of Perceived

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Risk, Perceived Convenience, and Perceived Enjoyable. Dierent personalization message

advertisements can then be sent to these diverse individuals.
This research was undertaken to study the consumers attitude towards online grocery shopping in India.
However, generalizing from the responses of a sample size of 100 respondents to the attitude of customers
all over India is not straightforward as India is a culturally rich country.
Thus, it is recommended to conduct similar nature studies for the various cultural groups India and study
their personality traits before trying to generalize these results.
IV. Limitation:
1. The research was targeted towards the whole demographic population of India but since the sample
size is small, the accuracy and authenticity can be low.
2. Some people may have lled the questionnaire without interest which may have lead to the
collection and analysis of inaccurate data.
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Robertson (1967) classies innovations as continuous, dynamically continuous and discontinuous.

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in the high-income group category. Therefore, H4g was partly supported.

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Notes: * Stascally signicant dierence (at p<0.10 two tailed), n=100

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Risk, Perceived Convenience, and Perceived Enjoyable. Dierent personalization message

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