Abstract
E commerce is one of the most recent consumer dynamics that has called for a change in the marketing plans and strategies for most of the consumer based merchants and manufacturers. This paper focuses on the consumer access and knowledge of shopping online for grocery in US and challenges this particular area of ecommerce experiences within the retail market in the United States.
Recent statistics show that 6 billion and 6.5 Billion US dollars were spent on online grocery shopping in 2012 and 2013 respectively. The large sales volume was highly attributed to the after sale deliveries by the sales companies. (Statista, 2016).The study’s other objective is to examine the process of selection and decision making processes before purchases from online purchases are completed. Identifying the major hurdles in the process of selecting products, and how the client and the market deal with the hurdles.
For the purpose of this study an online questionnaire was developed and transmitted to marketers and consumers online. A total of 115 respondents were received, however, 15 of the questionnaires were not included in the analysis due to incomplete answers, they were therefore considered damaged. Data from government statistics was also used to validate the responses from the questionnaires. Online grocery shopping in the US however like any other chain of retail market has been faced by challenges. This paper focuses on these challenges and aims at providing recommendations for the best practices.
Keywords; E-commerce, grocery shopping.
Chapter 1:Introduction
The introduction covers background information and research, problem statement and the purpose and aims of the study
1.1 Background information
Today the internet holds the largest base of retail market, this is because with increased in the technology and high efficiency and time management driven world many of the retail consumers prefer to purchase their day today products from the comfort of their offices and homes. The large access to a greater variety and better quality is a factor that opening up and accelerating the growth of online retailing. The interactivity of the sellers and the buyers through the website FAQs on the different dynamic of the products the availability of the internet and the reliability ease the technicality of the online shopping make it more popular (Pervaiz Ali 2011).
‘US has the most advanced online grocery market since ‘slightly over765 Billion consumers buy from the market daily’(Morgan Stanley Research, 2015).Previous research suggests that online grocery shopping is not cyclical and it may disappear due to a dissatisfaction arising from the wrong product delivery and as well numerous returns. However, data from the ground indicate otherwise as the market share continue to increase since it was introduced.
1.2 Problem statement
The lack of previous data to validate the findings of previous qualitative studies on online grocery challenges and dynamism and has necessitated the formulation of this study. It aims at providing data for the validation of the previous finding so that sufficient strategies maybe formulated and be tested to eliminate or rather minimize these challenges.
The fluctuations and changes that cause the halt of online purchases amongst the residents of this particular country, is a research question that streamlines the aims of this study. In a nut shell this paper seeks to identify the causes of the discretional behavior of the online grocery shopping and recommend possible and viable solutions to the same.
1.3 Aims and purpose
This research paper aims at laying out the key alternatives accessible to retailers building up an online business using currently existing literature. Notwithstanding, before talking about particular key alternatives it is valuable to recognize there is a gap in the understanding and utilization of the already available information.
The existence of a gap in particular and lack of an endorsed strategy for online retail route for both marketing and retailing explain the challenges experienced by both parties as each individual or company take different routes to effect and complete an online transaction. The ultimate aim of this paper is to offer an avenue for provision and validation of data towards the development of a common strategy of approaching online market place and specifically the online grocery market in the United States (Schuster et al., 1998).
Chapter 2: literature Review
Advancements both in the social, political and economic world have been rampant for the last one century, with the business environment being lined with globalization. This has been made possible by the technological innovations that have made the internet and computers both affordable and convenient (Pearce & Michael, 1998). In particular, the development of computers and the internet, the creation of the global village that has enabled sharing of data and information possible at just a click. The sharing and communication through the email and websites meant to make trading and information more accessible to the dwellers of this planet. To trade the internet has become a vital tool for marketing and as well an important platform where consumers can access information on various products.
With globalization and information sharing the computer and the internet have become a basic need to the middle income families, and may as well be basic to the world’s education system. This is because it is a Major source of information throughout the world. For the business entities the development of cloud storage is a big relief to the huge storage spaces consumed by company files (Raijas, Anu, and VirpiKristiinaTuunainen, 2001). This as well applies to the online retail stores.
The ability of the internet as an access platform for better quality and a variety of goods is a catalyst to growth of the online retail trade. The platform provided by the internet allows for multi-channel relationships and interactions that result to customer royalties and if not well managed can result to a gross failure in sales volume and loss of clients(carpenter JM & Moore M. 2006).
The general writing on the procedure of advancement selection is understood. Robertson (1967) describes advancements as persistent, powerfully constant and intermittent. Essentially, broken advancements not just include the selection of another item; additionally cause purchasers to essentially adjust their conduct designs. Utilizing Robertson's method, shopping for basic supplies online should be delegated a spasmodic advancement, in light of the fact that the conduct example of selecting basic need things online is extensively not the same as expressly picking things in plain view on a grocery store rack (Anckar, Bill, Pirkko Walden, and TawfikJelassi, 2002). This is especially applicable for new deliveries. Examples of products where the customers use specific selection methods include, meat, fish, leafy foods, which are rich in tactile characteristics (Brengman, Geuens and S'Jegers, 2003). The adjustments in research methodologies that indicate broken advancements propose that the procedure of selection for these developments might be lengthier and conceivably more hazardous than for nonstop or progressively constant advancements.
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