...What behaviors are involved in online grocery shopping? How does online grocery shopping compare with traditional shopping in terms of behavioral effort? There are several behaviors involved in online grocery shopping. For peapod grocery, the order were filled at affiliated stores and delivered to the customer’s home in a ninety minute time period; this save the customers time and reduced the stress that grocery shopping often causes due to lack of time and overcrowding. For these conveniences, the consumers were willing to pay a monthly fee as well as a fee per order that included the services of packaging, transporting, and delivering. Most of the items available for this service are brand name goods, which caused little risk in the consumers mind in purchasing their products and their goods ending up not being quality. Even produce and meat are able to be ordered without much concern. Online grocery shopping has many advantages over traditional grocery shopping, but there are a few downsides to the online experience as well, in terms of behavioral effort. The convenience of online grocery shopping cannot be beat. It is a no pressure experience and ultimately saves the average female consumer four hours per week and the average man two (Krantz-Kent, 2009). Additionally, there is no question about prices of goods. The prices on the site are clearly marked and are consistent. There is no driving to the store and looking for a parking spot, which saves gas and frustration...
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...Q1. What behaviors are involved in online grocery shopping? How does online shopping compare with traditional shopping in terms of behavioral effort? Ans.: The online grocery shopping consists of various types of behaviors; such as information contact, funds access, store contact, product contact and transaction behaviors. Information contact behavior is mostly a part of online grocery shopping, where consumers used to search their required products and order through online processes. The fund access behavior is also used in online grocery shopping while purchasing products through online by using their credit/debit cards or net banking. Sometime, customers used to order through online but visit the nearest stores to bring the product after inspecting; such as fresh vegetables, milk products and meat or animal proteins etc. therefore, they must search for the nearest store and product and contact them to bring those pre-ordered products. As said in this case; very rare i.e. 1-5% of people used to order or purchase products through online marketing procedure. As per the behavioral terms found in online grocery shopping, people used to go for this, only in emergency cases and when they do not have sufficient time to visit the stores and retail shops. Some of the common behaviors found in traditional and online shopping are; information contact, fund access, store contact, product contact and transaction behaviors. The other post-purchase behaviors found in traditional shopping...
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...Peapod Online Grocery Case Analysis Abstract This paper explores Peapod Online Grocery (2008) and its possibilities for success and failure based on several types of consumer behaviors. Most analysts do not expect the online grocery business to become more popular than the 8 to 10 percent of consumers that are estimated to purchase their products online. Parkinson, one of the founders of Peapod could not disagree more. “He states that this strategy can leverage the buying power of Ahold to make higher volume, lower priced purchases, lower distribution and transportation costs” ( Peter & Olson, 2010). The types of consumers attracted to online grocery shopping are also discussed as well as why these consumers find online grocery services to be convenient. Peapod Grocery Case Analysis Peapod online grocery was founded in 1989 by brothers Andrew and Thomas Parkinson. Back in the early 1990’s, Andrew and Thomas Parkinson believed that they had a sure winner with Peapod. Dual income families with little time can go online and do their grocery shopping in a matter of minutes. Consumers can browse the aisles on their home computer and place orders online, by fax machine or by telephone. The orders are then processed at affiliating stores and delivered to homes with in a 90 minute window. Peapod has grown from a small family shopping and delivery service in Illinois to America’s leading Internet grocer. Peapod delivers to more than 23 million orders across 24...
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...MGT603 Assignment Case study one 1. What behaviors are involved in online grocery shopping? The online grocery shopping consists of various types of behaviors; such as information contact, funds access, store contact, product contact and transaction behaviors. Information contact behavior is mostly a part of online grocery shopping, where consumers used to search their required products and order through online processes. The fund access behavior is also used in online grocery shopping while purchasing products through online by using their credit/debit cards or net banking. Sometime, customers used to order through online but visit the nearest stores to bring the product after inspecting; such as fresh vegetables, milk products and meat or animal proteins etc. therefore, they must search for the nearest store and product and contact them to bring those pre-ordered products. There are several behaviors involved in online grocery shopping. For peapod grocery, the order were filled at affiliated stores and delivered to the customer’s home in a ninety minute time period; this save the customers time and reduced the stress that grocery shopping often causes due to lack of time and overcrowding. For these conveniences, the consumers were willing to pay a monthly fee as well as a fee per order that included the services of packaging, transporting, and delivering. Most of the items available for this service are brand name goods, which caused little risk in the consumers mind in...
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...Object Oriented Approach to Virtual Grocery Shopping Object Oriented Approach to Virtual Grocery Shopping 2011 J.D. Yost, Matt Gauthier, Ray Manalo, Shaw Ryan VF, LLC 6/25/2011 2011 J.D. Yost, Matt Gauthier, Ray Manalo, Shaw Ryan VF, LLC 6/25/2011 | | | | | | Table of Contents Table of Figures 3 1. Introduction 3 2. Project Scope 3 2.1. Context Diagram 4 3. Overview of Solution 4 4. UML Diagrams 6 4.1. Virtual Foods Use Case Diagram 6 4.2. Virtual Foods System Sequence Diagrams 8 4.2.1. Create New Account 8 4.2.2. Create New Order 8 4.2.3. Process Payment 9 4.2.4. View Order 9 4.2.5. Fill Customer Order 10 4.2.6. Deliver Order 10 4.2.7. Check Order Status 11 4.2.8. Update Order Status 11 4.2.9. Access Customer Account 12 4.2.10. Delete Account 12 4.3. Virtual Foods Class Diagram 13 4.4. Virtual Foods State Diagram 14 4.4.1. Order Process 14 4.4.2. Ordering via Website 14 4.4.3. Customer Account Created 14 4.5. Virtual Foods Gen/Spec Diagram 15 4.6. Three Tier Diagram 16 4.7. Data Flow Diagram 16 4.8. Whole – Part Diagram 17 5. Java Programming Code 17 6. Summary 19 Table of Figures Figure 1 Context Diagram - Defining Scope 4 Figure 4.2 Use Case Diagram - Virtual Foods System 6 Figure 4.2.1 SSD - Create New Account 7 Figure 4.2.2 SSD - Create New Order 7 Figure 4.2.3 SSD - Process Payment 8 Figure 4.2.4 SSD - View Order 8 Figure 4.2.5 SSD -...
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...Shopping – Then And Now There is no discussion that shopping habits have changed dramatically in the past 60 years. One of the biggest differences is online shopping. Many people now enjoy shopping from their computers, without a need to drive from store to store or standing in line to check out. But what is this kind of behavior doing to the social values on which the society is built? Will the malls and stores eventually stand empty? In 1950 there was no Internet and no super stores. When people needed groceries they would go to the grocery store and when they needed toys they would go to the toy store. There were a lot more small towns then and each town would have a large number of small stores to accommodate every shopping need. Each store was managed by its owner and emphasis was put on making the store an inviting place for people to go to. Stories were often exchanged in the stores and this way everyone knew when something was going on in the town. For holidays, many stores would work together to decorate the streets and store fronts and going shopping became a treat that involved more than just shopping. A family could spend a whole day looking at decorations and exchange news with friends while taking care of their shopping needs. Malls and department stores did exist in 1950, but they were more common around bigger cities and more densely populated areas. Malls were created to move shopping districts away from downtown areas and it was not unusual for someone to...
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...acknowledged that there are some apparent spillover effects for both traditional store and online store. For online store, which is a new business model for Crisp Markets, Crisp Markets needs to consider some aspects like WACC, payment terms & security issue, delivery and customer satisfaction. From the perspective of finance, at first, we calculate the net income and cash flow of the following six years. Then, we find out it is not appropriate for Crisp Markets to use the recommended 4% discount rate. WACC should be used as discount rate. The calculated WACC is 11.9%, which is the required return rate. After that, by using the net income we calculated beforehand and with the required return rate of 11.9%, we got both NPVs of online and traditional grocery store are positive, $3,768,359 for traditional store and $4,020,441 for online store. Meanwhile, the IRRs of traditional store and online store are 55% and 47% accordingly. The NPV of online store is approximately 6.7% higher than that of traditional store. For reason that NPV rule is the most important criteria, we recommend Crisp Markets setting up online grocery store. 1. Pro Forma Income Statement * The relevant cash flows associated with setting up traditional grocery store are: up-front renovation costs, sales, salaries, other operating expenses, rent, depreciation and taxes. Pro Forma Income Statement of Traditional Grocery Store * Sales are estimated to be $5,750,000 at the first year of operation...
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...built its success by focusing on its primary market: families of four or five individuals with adults ages 24 to early 40s who are informed. Value-conscious consumers – consumers like Leslie Wells. Leslie Wells’s recent expedition to the new Cub Foods store in Melrose Park, Illinois, was no ordinary trip to the grocery store. “You go crazy,” says Wells, sounding a little shell-shocked. Overwhelmed by Cub’s vast selection, tables of samples, and discounts as high as 30 percent, Wells spent $76 on groceries - $36 more than she had planned. Wells fell prey to what a Cub executive calls “the wow factor”. A shopping frenzy brought on by low prices and clever marketing. That’s the reaction Cub’s super warehouse stores strive for and often get. Cub Foods has been a leader in shaking up the food industry and forcing many conventional supermarkets to lower prices, increase services, or, in some cases go out of business. With Cub and other super warehouse stores springing up across the country, shopping habits are changing too. Some shoppers must drive 50 miles or more to a Cub store instead of going to the nearest neighborhood supermarket and bag their own groceries at Cub Foods. Their payoff is that they find almost everything they need under one roof, and most of it is cheaper than at competing supermarkets. Cub’s low prices, smart marketing, and sheer size encourage shoppers to spend far more than they do in average supermarket. The difference between Cub and most supermarkets...
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...Jeddah city, Saudi Arabia that offers online shopping service besides the traditional physical shopping. It was launched in 3rd of July 2010. it offers its clients more than 11,000 products at competitive prices. Once an order is placed, staff at the store starts to work on delivering the goods. There are sections in each category that allow the customer to find a good at a certain price and quality, and choose the time of delivery. The English version URL: http://www.andalusiaexpress.com/index.php?language=en Market strategy identification: Every effective marketing plan starts with a strategy. Creating a Market Strategy means understanding our clients and our competition. Obviously any marketing strategy begins with the identification and selection of target markets because marketers need to identify who their market is so they can better target their market with the right message. Marketing mix: The term marketing mix is referring to the primary elements that should be attended to properly market a product. Also, it is known as The 4 Ps of Marketing. However, the marketing mix is a very useful, if a bit general, guideline for understanding the fundamentals of what makes a good marketing campaign (Jones, 2007). 1- Product: A product is a benefit of service which a business provides to its customers (Kumar, 2010). Product is the first important element of marketing mix. According to the observation in Andalusia Express grocery Store’s website, the researcher stated...
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...A FINAL PROJECT REPORT ON “CONSUMER PERCEPTION TOWARDS ONLINE GROCERY STORES” SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR MASTER OF MANAGEMENT STUDIES TO UNIVERSITY OF MUMBAI BY RAINU TANVEER SINGH SPECIALIZATION: MARKETING ROLL NO. 40 Batch: 2010-2012 UNDER THE GUIDANCE OF PROF. ANNIE PILLAI Guru Nanak Institute of Management Studies and Research MATUNGA, MUMBAI – 400 019 Table of Content Chapter No. 1 2 3.1 3.1.2 3.2 3.3 3.3 3.4 4.1 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Topic Executive Summary Literature Review Industry Introduction Models of E-commerce Online Shopping In India Online Grocery Shopping Indian Players in Online Grocery Shopping Company Introduction Hypothesis Research Objectives Scope of the research Limitations Research Design and Methodology Sample Design Sampling Technique Data Collection Tool Used Questionnaire Data Analysis Page No. 03 05 10 12 14 18 20 26 27 30 30 30 31 31 31 32 33 36 55 57 58 60 7.1 7.2 8.1 9.1 Observations Recommendations Conclusion Biography Page 2 CHAPTER 1 Page 3 1.1 Executive Summary Internet and Information technology have made tremendous contributions for business transformation witnessed nowadays all over the world. This has given birth to E commerce which encompasses several pre purchase and post purchase activities leading to exchange of products or service or information over electronic systems such as the internet and the other Telecommunication networks. Analysing the competitive...
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...built its success by focusing on its primary market: families of four or five individuals with adults ages 24 to early 40s who are informed. Value-conscious consumers – consumers like Leslie Wells. Leslie Wells’s recent expedition to the new Cub Foods store in Melrose Park, Illinois, was no ordinary trip to the grocery store. “You go crazy,” says Wells, sounding a little shell-shocked. Overwhelmed by Cub’s vast selection, tables of samples, and discounts as high as 30 percent, Wells spent $76 on groceries - $36 more than she had planned. Wells fell prey to what a Cub executive calls “the wow factor”. A shopping frenzy brought on by low prices and clever marketing. That’s the reaction Cub’s super warehouse stores strive for and often get. Cub Foods has been a leader in shaking up the food industry and forcing many conventional supermarkets to lower prices, increase services, or, in some cases go out of business. With Cub and other super warehouse stores springing up across the country, shopping habits are changing too. Some shoppers must drive 50 miles or more to a Cub store instead of going to the nearest neighborhood supermarket and bag their own groceries at Cub Foods. Their payoff is that they find almost everything they need under one roof, and most of it is cheaper than at competing supermarkets. Cub’s low prices, smart marketing, and sheer size encourage shoppers to spend far more than they do in average supermarket. The difference between Cub and most supermarkets...
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...Introduction 3 2. Situational Analysis 4 2.1 PEST Analysis 2.2 SWOT Analysis 2.3 Current IMC Analysis 2.4 Competitors Analysis 3. Marketing Strategies 9 3.1 Marketing strategies 3.2 Target Market 3.3 Campaign Objectives 4. Campaign 11 5.1 Theme, Message and Brand Values 5.2 Promotional Tools 5.3 Campaign Budget 5.4 Schedule 5.5 Evaluation 5. Appendices 17 6. References 23 1. Introduction Lidl was founded in Germany as a grocery wholesaler in 1930. Its first shop in the UK opened in1994 and has grown to over 500 shops. This report outlines Lidl’s Integrated Marketing Communications (IMC) plan to raise brand awareness, customer satisfaction and to increase the company’s market share. It is also the start for a new era by introducing an online shopping service which is absolutely crucial to stay competitive in the UK’s grocery industry. Furthermore, by extending Lidl’s Deluxe range the company is responding to the shift in buyer behaviour where more and more middle income shoppers are going to Discounter because of the current economical situation. This report is divided to three parts. The first part shows the PEST, SWOT, Competitors analysis and an overview of Lidl’s current IMC strategy which reflect the company’s current situation. In the second part, this paper outlines the marketing strategies and the...
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...consumers the facility to place their orders through the Website or Phone and Sangam Direct will home deliver the products at the appointed date and time. This project will deal with understanding their existing consumers’ preferences and behaviour while food and grocery shopping which will help them to serve its customers in a better way by making the required changes in their way of working according to the responses recorded during the study. 1.2 Objectives of study: • To understand consumer profile. • To understand consumer preferences. • To know the frequency of purchase by the customers from Sangam Direct. • To obtain customer feedback for providing better service. • To provide recommendations to the company to provide greater satisfaction to existing customers to retain them. 1.3 Scope of Study: This study will provide us information on Sangam Direct’s existing customers’ profile with respect to their psychographics, behaviour and demographics. It will also provide Sangam Direct with information which can help them retain its customers by acting as per the customer feedback and suggestions which don’t cost much. It can also be used as reference by professors and academicians who are teaching online consumer behaviour. 1.5 Significance of study This study is significant because it is going to provide with recommendations to Sangam Direct which can be used as to plan marketing strategies by the store so as to create awareness in the market, to fight competition...
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...Customer Satisfaction and Customer Loyalty among Grocery Shoppers a research done in The Netherlands [pic] ERASMUS UNIVERSITY ROTTERDAM Faculty of Economic Science Author: Stephan (S.A.) de Jong Supervisor: Drs. Jordana Liberali Exam number: 311458 E-mail address: 311458sj@student.eur.nl / s.a.jong@hotmail.com Course : Economics and Business Economics (Marketing) Thesis: Master thesis Date: August 11, 2011 Preface This master thesis is considered as the final exam before graduating in a Master of Economic Science. With this last piece of work I will complete my study Economics and Business Economics, specialized in Marketing at the Economic Faculty at the Erasmus University of Rotterdam. The topic of this thesis is customer satisfaction and customer loyalty among grocery shoppers in the Netherlands. The focus of this research will be on the region ‘Het Westland’, a district in the southwest of the Netherlands. The purpose of this research is to investigate the relationship between customer satisfaction and customer loyalty and the main drivers of those two. The research took me about seven months and it was very interesting to see the different aspects of doing a research like this. I wish to pay special thanks to Drs. Jordana Liberali, my supervisor at the Erasmus University of Rotterdam, for advising, supporting and providing me with useful information but also criticism...
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...Toyota (Chapter 1) Overview. This case concerns the systems used by Toyota to become the third largest automobile manufacturer in the world. The case illustrates how this organization strives to serve customers and achieve a profit. The case intentionally emphasizes features of Toyota's manufacturing system, rather than its marketing strategies per se, to show how the whole organization is focused on serving customer wants and needs, not just the marketing department. Suggestions for Discussion Questions 1. In what ways is Toyota's new-product development system designed to serve customers? There are a number of features to this system that make it customer oriented. The Toyota system responds more quickly than competitors, allowing the company to correct any mistakes and react to market trends faster than competitors. The system has a chief engineer responsible for the product from design to marketing. This may allow consumer research to function as a direct input into engineering specifications rather than become a secondary concern after the product is designed. Since the corporate philosophy is to serve customers, consumer inputs are more likely to be used develop better new products. 2. In what ways is Toyota's manufacturing system designed to serve customers? There are a number of features in Toyota's manufacturing systems that are designed to serve customers, including the following features. Employees, even on the assembly line, are trained to consider their...
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