Factors influencing e-grocery

1. Two Days National Conference On
Sustainable Business Practices(SBP’ 22)
Organized by The department Of Commerce
Women’s University, Koti, Hyderabad-500095
“Factors Influencing the Consumer’s
Purchase patterns of groceries from offline to
online-A Review”
Mohammad Affan Akhtar Md Rashid Farooqi
PhD Management Assistant Professor
Maulana Azad National Urdu University, Hyderabad - 500032

2. Abstract:
 This study attempts to recognize how consumers change their purchasing patterns from offline stores-
based shopping to online or app-based shopping, particularly for grocery products. If we talk about 2018-
19, so It was harder to think that grocery products like fruits, milk, vegetables, bread, egg, fish, meat, etc.
can also be delivered online in India, but today most of the online platforms like Flipkart launched
“QUICK,” Amazon Launched their “Amazon Fresh,” and many more app-based companies launches and
launching day by day new applications and platform for delivering the grocery products at your doorstep
within 10-15 minutes, Like BigBasket, Licious, Zepto, Nature’s Basket, DMart, JioMart, InstaMart, Dunzo,
Blinkit, Faraazo and many more.
 The main factors which influence the consumers to move online grocery shopping are the latest
technology, convenience, and due to Covid-19 pandemic also. Currently, in metropolitan cities and some
metro cities in India, app-based companies are serviceable and provide grocery products. Observations
of online and offline buyers can be evaluated to determine how value is constructed in both the channels.
 It is necessary to identify factors that influence offline grocery shopping. The main objective of this study
is to analyze the factors that influence consumers to purchase groceries from offline to online, whether
this is due to technological changes and awareness or convenience, or because of time savings, avoiding
crowding, low pricing, and more verities, and to identify the factors that motivate customers to move
online-that is, app-based shopping or go offline-that is, store-based shopping, particularly for groceries.

3. Introduction:
 In recent years technology, Co-Vid 19, Pandemic plays a vital role in making consumers grocery
purchasing through app-based companies from retailers and retail stores, also because of technology
awareness and faster, easier Internet availability, and of course due to this pandemic Covid-19, the
customers move from offline or retail stores to online app based shopping of daily need
products(groceries), the widespread availability of smartphones as well as personal computers, grocery
retailers' emphasis on this channel to increase market share, and consumers seeking convenience and
time savings Due to the quick spread of the COVID-19 deadly virus as well as the growth of mobile
Internet technology, along with customers' faster acceptance of online shopping technologies, the
global e-commerce industry has seen phenomenal growth.
 Earlier, online shopping was limited to specific market segments, few product categories, and a select
group of customers, but nowadays online shopping provides everything at your doorstep, after the
demonetization in India, people were used to making online payments and doing transactions through
debit card, credit card, and UPI payments and somehow app-based companies are also success to
build the trust in consumers and provide cashback and more offers if paid through online.
 But during this Pandemic Co-vid 19 and lockdown the situation changed especially for grocery products
as the consumers avoiding to go outside and govt rules and regulations were also strict, due to that
online grocery shopping boomed, and then after the lockdown also consumers were used to that kind of
convenience and they can save time, avoid crowding, maintain social distancing, etc. So, consumers
prefer online shopping for groceries as compared to offline shopping if It’s available in their location.

4. Insight From Related Studies:
 Adaptation of E-Grocery. The behavioral intention of shoppers to accept new technology can be used
to measure the adoption of the e-grocery platform. Consumers are more likely to purchase grocery items
online if the price is competitive, there is free delivery, discounted offers, cashback offers referral offers,
quick delivery, and easy to order. And nowadays to follow physical distancing and avoid gathering and
crowding and the govt rules & regulations for precaution and control to spread of COVID-19 pandemic.
 (Selvakumar et al., 2016) focused on consumers' perceptions of online products and their satisfaction
with shopping online. This study was conducted among online consumers within the Coimbatore district
of Tamil Nadu, India. The impact of consumer opinion and attitude was investigated in this study. To
collect data from the general population, a survey was designed and distributed to university students
and. The number of people who responded was 150. This study's findings show that consumer intention
to buy online is influenced by improvement and variety, convenience, ease to use, and technology.
 The Technology Acceptance Model was used to identify and analyze some important factors that would
influence consumer behavior in adopting the new e-grocery platform. (Venkatesh et al., 2009) stated that
the "Technology Acceptance Model" could assess an individual's willingness to accept and ultimately
adopt new technologies. Some many key factors were emphasized by the Technology Acceptance Model
theory, including perceived usefulness and perceived ease of its use (Driediger et al., 2019).

5. Recent Trends in E-Grocery:
 In recent years especially after Co-vid 19 Pandemic in India the e-grocery boomed in the retail market and
many app-based companies launch their e-grocery applications and start providing the daily essentials at
our doorstep in 15-30 minutes like JioMart, BlinkIt, Amazon Fresh, Quick, Zepto, Instamart, BigBasket, etc.
The procurement of BigBasket has been one of the Tata group's brightest moves in a long time. "It
represents one of the most appealing e-commerce platforms in the grocery space, with strong sales and
growth potential. "Harminder Sahni, founder and managing director of management consulting company
Wazir Advisors says, “According to data firm Statista, BigBasket had the largest market share from over
35% in the Indian e - grocery segment in 2019.” But now Instamart, Zepto, amazon's fresh, and Flipkart's
Quick are increasing their percentage of e-grocery share rapidly and are able to make trust in the
consumers.
 The Indian online grocery market was worth USD 2.9 billion in 2020, and it is expected to grow at a
compound annual growth rate (CAGR) of 37.1% between 2021 and 2028. The market has gained
tremendous traction in recent months as a result of changing consumer lifestyles, increasing urbanization,
and a tech-savvy generation that prefers to buy products online, this presents a massive opportunity. No
wonder that RIL, the oil-to-telecom conglomerate led by billionaire Mukesh Ambani, has built its own e-
commerce platform JioMart—a joint venture between Reliance Retail and RIL’s digital services arm Jio
Platforms. JioMart delivers grocery and daily essentials through a scheduled delivery model as soon as
possible from nearby stores which consumers adopting very rapidly.

7. Conclusion
 As consumable income goes up and lifestyle choices are becoming busier, people are turning to
customization options and simple digital sites for e-grocery shopping rather than walking down to
neighborhood vendors. Following the COVID-19 outbreak, there was a greater preference for online
grocery delivery through app-based companies. Consumers are shifting their attention to online
grocery shopping as a result of social distancing standards, follow the govt rules, less crowding, and
time-saving, which is not only safe and secure but also time-saving and convenient.
 Through many International and national journal reviews, we have found that the factors which
influence the consumers to move or transit for online shopping with special reference to grocery
Items are, technology awareness, Internet, mobile, and system growth, Covid-19 Pandemic, and
govt rules and regulations during the lockdown, and of course, convenience, time-saving,
maintaining physical distancing avoid crowding, etc. The most significant factor that influenced e-
grocery adoption was trust. Meanwhile, all variables, including risk perception, usefulness and ease
of use, and relative advantage, had a positive effect on the trust of e-grocery customers.

8. Thank You