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Grocery Retailing in India: Online Mode versus Retail Store Purchase

Author

Listed:
  • Masood H Siddiqui
  • Shalini N Tripathi

Abstract

E-retailing is entering into the Indian retail scenario in a noticeable way and online grocery retailing holds a promise of acceptance by the Indian customers. This paper attempts to discover the market potential of online grocery retailing in India and consumers’ perception towards its different aspects. Confirmatory factor analysis proposes that there are five underlying dimensions (convenience, value for money, variety, loyalty and ambient factors) governing the selection of mode for grocery purchase. Thereafter Binary-Logistic Regression has been employed to analyze the impact of these five broad perceptual dimensions upon the acceptance/rejection of online grocery retailing. The respondents accorded the highest importance to the factors value for money and convenience. The study suggested that issues like meeting customer expectations and preferences in terms of delivering value for money, quick and convenient purchasing, smooth delivery process, and reducing risk perceptions are critical for establishing online grocery retailing as an effective alternative to traditional brick and mortar retailing.

Suggested Citation

  • Masood H Siddiqui & Shalini N Tripathi, 2016. "Grocery Retailing in India: Online Mode versus Retail Store Purchase," International Business Research, Canadian Center of Science and Education, vol. 9(5), pages 180-195, May.
    • Handle: RePEc:ibn:ibrjnl:v:9:y:2016:i:5:p:180-195
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    References listed on IDEAS

    as
    1. Keh, Hean Tat & Shieh, Elain, 2001. "Online grocery retailing: success factors and potential pitfalls," Business Horizons, Elsevier, vol. 44(4), pages 73-83.
    2. Jeffrey R. Brown & Austan Goolsbee, 2002. "Does the Internet Make Markets More Competitive? Evidence from the Life Insurance Industry," Journal of Political Economy, University of Chicago Press, vol. 110(3), pages 481-507, June.
    3. David Bell & Sangyoung Song, 2007. "Neighborhood effects and trial on the internet: Evidence from online grocery retailing," Quantitative Marketing and Economics (QME), Springer, vol. 5(4), pages 361-400, December.
    4. Forsythe, Sandra M. & Shi, Bo, 2003. "Consumer patronage and risk perceptions in Internet shopping," Journal of Business Research, Elsevier, vol. 56(11), pages 867-875, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    binary logistic regression; convenience; factor analysis; online grocery retailing; perceptual dimensions of grocery retiling; value for money;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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    Access and download statistics

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