E-grocery or online grocer refers to a grocery store that allows private individuals and businesses to purchase groceries and grocery products online. There is usually a delivery charge for this service. Supermarket is a large self-service food store and slowly into a store with basic household items as well. Technology has transformed the way many industries operate. In Fast-moving consumer goods industry, technology is redefining the shopping experience. E-grocery is rapidly growing in popularity although it is a rather new environment
Consumer attitude towards online grocery adoption
Studies have shown that the inclination to buy food online is mostly dictated by the service quality customers get from online grocery retailers in terms of the available option for ordering items online and having them delivered at home. Furthermore, changes observed in family structure (dual-income households) result in the increased number of consumers experiencing time pressure.
The increasing numbers of consumers who use Internet when buying food push marketers to know well the customers they are dealing with in order to perform their service.
Factors triggering the buying channel adoption may vary from consumer to consumer. There are a number of factors which could affect consumers’ decision to adopt and use online grocery channel. These are service quality, selection, price, and services available online but not in the physical store. Further, the results have shown that convenience and saving time are two important factors leading to customer’s willingness to try online grocery channel.
As the future success of online grocery is uncertain for many retailers, there is a need for retailers to better understand how earlier adopters of Internet grocery perceive this new channel and what differentiate them from other consumers using brick-and-mortar channel. This will help, according to the same source, online grocery retailers to set marketing strategies which will attract new adopters of online grocery.
Convenience refers to different forms of costs (monetary, time, effort, and stress) related to a purchase. Compared to the brick-and-mortar channel, online grocery has two main advantages. Not only, has it enables consumers with high level of convenience in terms of being able to buy from anywhere and reduced transportation cost, but also, it can help them to save time through less transportation and planning. Yet, from a geographical perspective, online grocery allows consumers to buy from a range of different stores.
Within the brick-and mortar retail structure, being able to seek and gather information about the product or service is for consumers a shopping motive. Online grocery structure provides consumer with an option to “search, compare, and access information much more easily and at a deeper levels than within the bricks-and-mortar retail structure”.
Online channel offers not only a wide range of information, but also, it enables retailers to deliver specific information adapted to the specific needs of the consumer.
Perceived ease of use
The perceived ease of use refers to “the degree to which a person believes that using a particular system would be free of effort.’’ Thus, if a consumer perceives easy to use a system the probability of actually of adopting and using that system will positively increase. Perceived ease of use was considered to be a positive factor for consumer when planning to purchase their grocery online.
The perceived ease of use has a direct impact on consumer’s attitude towards online grocery channel adoption for many reasons. Not only, the ease of understanding a website functions, interface, and content affects positively the consumer’s intention to adopt online grocery channel, but also, the speed by which a consumer can find information about the needed products and their location is also important. Further, the time required and action needed the get the desired results are also considered to be important for consumer.
The online grocery market is very fragmented due to the number of competitors. Compared to the traditional brick-and-mortar physical stores, online retailers mostly operate locally, but few are involved in national or international delivering of non-perishable products. Product quality means, “actual functionality of the product, consistency between the quality specification of Internet shopping mall and real quality of the physical product.”
It appears that the brand image plays a critical role on the consumer’s perception of product quality. If the claim associated with the brand is of high quality, consumers will then tend to trust the quality of the products provided by the brand.Decision to adopt and use Internet is influenced by the consumers’ expectation about the product quality.
Purchasing Decision of consumers
Purchasing intention of online grocery decision-making. “Purchasing decision process” is when the relevant information is searched by the consumers that are motivated by the fulfillment of demands according to personal experience and the external environment; then after accumulating a certain amount of information, they begin to evaluate and consider; and finally after comparison and judgment, they make the decision on certain products.There are five external factors to understand consumer’s intention to purchase in the internet which is the consumer personality, situational factors, product characteristics, previous online grocery experiences and the trust in online grocery.
Perceived risk is defined as consumer experiencing consequences or the amount of uncertainty in contemplating as particular purchase decision. Perceived risk as the potential of unfavourable consequences and the level of uncertainty in a purchasing situation. Perceived risk increases psychological costs when feelings of discomfort occur in an individual. Perceived risk has two main concerns. First is concerning the service delivery system’s technical performance or functional reliability; and second is concern on privacy and security. Functional or performance goals, psychological goals, or the means of money, time and effort invested to attain those goals may be regarded as the consequences.
Internet shopping, there will be risk involved, privacy, security, visual appeal, delivery terms, form of payment and product information. Besides that, quality of a product cannot be physically checked by the consumers and the security of sending sensitive personal and financial information while conducting online grocery cannot be monitored by the consumers. For apparel shoppers, they should use the internet to search for extra information to reduce risk in decision making because of they are unable to try on the garment. Attitude towards security transaction such as payment security, consumer information privacy, return policy, and product shipping guarantee predicts online purchasing intentions for apparels product.
Online shopping in Ilocos Norte
Online shopping has its ups and downs, but most people today prefer buying online rather than the traditional shopping. In Ilocos Norte online shopping is becoming more and more popular for the millennia’s. People in Ilocos Norte who uses online shopping are mostly students and young adults, the reason why many people turn to online shopping is for its conveniences. Some example of online shopping in Ilocos Norte is the page “Buy n Sell sa Laoag”, this page lets people post to sell products and many people are willing to buy. Some businesses in Laoag also uses social Medias to advertise and sell products. This shows that more and more people will be using online shopping in the coming years.
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