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CONSUMER PREFERENCES TO PURCHASE ROUTINE GROCERY ON AMAZON SITE
Dr. A. Sakunthala
Associate Professor
Amity Global Business School
Hyderabad, Telangana, India
Abstract
Amazon Fresh is Amazon's online grocery store, where customers may order groceries online and have them delivered the
next day. The organization does an excellent job with its online grocery selling. Food and commodities are housed at Amazon's huge
warehouse facilities, which are also used to keep non-edible inventory. Amazon Logistics offers a website for delivering goods. This
paper is focused on the consumer preferences to purchase grocery on Amazon site.
Keywords: Online Grocery, Inventory, Logistics, Delivery.
Introduction
Amazon Fresh is Amazon's online grocery store, where customers may order groceries online and have them delivered the
next day. It started near the company's headquarters in Seattle, Washington, in 2007 and has since extended across the United States
and overseas. The organisation does an excellent job with its online grocery selling. Food and commodities are housed at Amazon's
huge warehouse facilities, which are also used to keep non-edible inventory. Amazon Logistics offers a website for delivery service
that can reach local locations as soon as feasible, usually within 24 hours. Thousands of items, including vegan and organic ones, are
available from the company. The products are delivered by either an attended delivery or a door-to-door delivery. In the case of an
attended delivery, you must set aside one hour in your calendar to pick up your package in person. You can schedule a 2–3-hour drop-
off period for meals to be left at your home with doorstep delivery. Before the order is sent, you have the choice of adding it to your
cart or cancelling it. Amazon fresh does not deliver to dorms or closed locations. Amazon has teamed up with Allrecipes.com to
provide essential components for any Amazon fresh recipe. Amazon is a profitable firm with a strong infrastructure that is well-
established across the United States. Customers in select locations can get same-day delivery from Amazon, and the company's foray
into the grocery sector looked inescapable. As long as Amazon Fresh maintains an excellent track record of customer service, it will
be able to compete in the supermarket sector for a long time.
Amazon has tried to create a grocery store that will appeal to its wealthier customers. Amazon Fresh maintains a value
proposition that appeals to today's shoppers, as well as the flexibility to accommodate changing customer needs while maintaining low
operating expenses. At first, Amazon Fresh resembled a traditional grocery store; it was neither too small nor too large, it included all
of the commodities available in a full-service grocery shop, and its meat and seafood departments offered freshly prepared items.
However, a closer examination revealed Amazon Fresh to be a digitally integrated grocery store that is merchandised for today's
customers and offers a seamless shopping experience. Its low break-even sales volume demonstrates that it can thrive in highly
competitive marketplaces. These stores aren't built to take on the competition; rather, they're designed to help other grocery stores
survive.
Amazon fresh stores target trade areas with higher-than-average median income. People in this sector value both time
and money, thus they spend more on groceries per week than other shopper categories. Because Amazon has a strong relationship with
many of these customers thanks to Prime, it can quickly reach out to them with incentives or promotions and other targeted
communications. The secret to Amazon Fresh outlets' success is to be as diverse as possible when it comes to offering things that will
surprise and excite customers. Local brands, regional brands, and Amazon-exclusive brands are among them. Amazon's fresh stores
are strategically placed in the heart of its key market locations, giving the company easy access to its clients or customers. A larger
density of online orders from the immediate trade region enables customers to receive service at a reduced cost of delivery. While
some may consider the Amazon fresh store structure to be too traditional, when viewed in the context of a bigger strategic framework,
it is clear that it has the potential to drive Amazon's grocery sales with affluent shoppers for years to come. When Amazon is able to
run these locations or stores in such a way that they satisfy its target customers while also operating at a lower cost, other retailers will
find it impossible to compete.
Unlike most retailers, amazon believes that success is about exploiting its unique strengths to focus on exactly the
section of its business where it can generate profitable growth without making a huge investment. The company's major aim is to
target the upper-income consumer, which believes that time is more valuable than money. Because of Amazon Prime, these markets
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already have a strong presence, and the business is well aware of their shopping habits. Amazon's customer management talents will
enable it to increase customer satisfaction while also increasing shop profitability.
Literature Review
Anupama Sharma (2020) has identified the changes in consumer behaviors towards online shopping due to the impact of covid-19.
The wide range of changes occurred in purchasing behavior of customers due to the changed perception of lifestyle and people are
much aware of safety. So, the customers are much likely interested to purchase luxury items to routine grocery on online as long as the
conditions of covid-19 improves.
T. Narayana Rao (2020) emphasized about online purchase behavior and consumers perception of online shopping. The offers,
discounts, EMI facility and ease of finding wide range of products influences the customers purchasing behavior mostly. Yet there are
also reasons which make customers to prefer offline shopping such as, problem in return of damaged products and few negative
reviews of customers regarding certain products may affect other customers who consider reviews in their purchasing decisions.
Tanzeel Hussain (2020) evaluated the satisfaction of shopping experience on Amazon. It is identified that most of the customers are
satisfied by the services of Amazon and all age groups of people are dependent on Amazon for various products. Customers mostly
know about Amazon through friends, advertisements on social media and word of mouth. It is highly satisfying all category of people.
Dr. C. Vijay Vishnu Kumar (2019) primarily studied on to what extent customers are satisfied by the services provided by the
Amazon. The research had found that customers are satisfied with amazon facilities like high quality products, quick delivery of all
priced products and providing wide area of network to reach more customers. It is also identified if more designs are provided for
same product, it can gain much more of customers.
Ajay Balaji Dhome (2019) mainly observed the marketing strategies adopted by both Flipkart and Amazon for its aim to reach more
customers. The study mentioned that customers decision of purchasing between Flipkart and Amazon is taken mainly based on their
pricing strategies and customers are willing to have secured transaction. The improvements in the technology of both Flipkart and
Amazon made them major e-commerce market players.
M. Vidya (2019) examined the consumer behavior towards online shopping by analyzing with product dimensions. Few product
dimensions analyzed are ease in product comparison, less product price, quality of product, delivery time, branded products, repeat
purchases and product reviews. It is identified that these product dimensions directly influence consumer behavior of online shopping.
Dr. C. EugineFransco (2018) mainly focused on describing customer satisfaction and attitude towards Amazon online purchase in a
particular district named Tirunelveli. In the study the main factors that affect customers purchasing behavior were identified. The
factors are like delay in delivery service and the consumers are mostly post graduates as illiterate are not much aware of online
purchase. It is also analyzed that consumers are mostly females, and the apparel are mostly purchased items and finally they are not
trusting the online payment method much. The research finally concluded that especially elite group are using the system mostly.
Research Methodology
Objectives of the study:
The research paper mainly deals with the information related to below mentioned objectives.
To identify which factors will make consumers to purchase routine grocery items through online on Amazon
To study whether the consumers become satisfied with the online purchasing of grocery on Amazon
To study which segment of people will prefer to buy grocery on Amazon
To analyze the consumers perception towards availability of routine grocery on Amazon.
Nature of research
The research is about what is consumer behavior towards purchasing grocery items on online. The factors influencing
customers are known by using surveys to gather data. Thus, we can say the nature of research is descriptive as it aims to describe a
population or situation and uses wide variety of research methods to investigate more variables. In this research the factors that affect
consumer purchasing behavior of grocery on Amazon is being analyzed. Are consumers going to purchase routine grocery on Amazon
is being described in this research. Thus, the nature of research is descriptive in nature.
Sample design
In the research the convenience sample design is selected to collect data. The data is collected by sending questionnaire to a
sample of 60 people from different age groups, gender and population by applying convenience sample design. The perception of
different category of people is analyzed by convenience sampling design. Convenience sample method is easy to conduct, reduces
time, less cost and data can be interpreted effectively.
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ISSN:2277-7881; IMPACT FACTOR :7.816(2021); IC VALUE:5.16; ISI VALUE:2.286
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Data collection methods and tools
Primary data: It is a data that is collected by researchers from sources like surveys and interviews. In the research the primary data is
collected by conducting survey with a sample of 60 people. A questionnaire is prepared and recorded different perceptions of people.
Thus, the primary is collected.
Secondary data: In the research this data is collected from various journals and magazines.
Data collection technique
The data collection technique used in the research is questionnaire process which is sent to a sample of 60 people. The
different preferences of people are known through questionnaire prepared and data is analyzed.
Limitations of study
The research is about consumers’ preference of purchasing grocery on Amazon so it will not include the analysis of other
products on Amazon much.
The comparison of Amazon with other brands is not been analyzed much.
The data collected may be biased due to different categories of people in sample.
The sample size is limited to 60.
Data Analysis and Interpretation
Data analysis is the most crucial part of any research. Data analysis summarizes collected data. It involves the interpretation
of data gathered through the use of analytical and logical reasoning to determine patterns, relationships and trends.
So, in the research data analysis is done by conducting survey through questionnaire and it is done with the sample of 60
people. The preferences of customers are recorded and data analysis is done efficiently. The data collected is presented in the form of
pie-chart and interpreted in the understanding manner.
Age wise classification
From the above pie-chart it is observed 93% of respondents are in the age group of 18-25 years, 5% respondents are in the
age group of 26-50 and only 2% of respondents are in the age group of 51-70 years. So, it is concluded that people above 25 years age
group are considerably less participated.
Gender wise classification
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From the above pie-chart it is observed 51.7% of respondents are male and 48.3% of respondents are female. So, it is
concluded that males are slightly more than females in survey.
Place of residence
From the above pie-chart it is observed 50.9% of respondents are from rural, 40.4% of respondents are from urban and 8.8%
of respondents are from metropolitan. So, it can identify that survey is mostly from rural and urban.
Most preferred online site for grocery purchase
From the above pie-chart it is observed 75% of respondents prefer Amazon, 19% of respondents prefer Flipkart and 6% of
respondents prefer big basket. So, the highest preference is towards Amazon.
Factors influencing to purchase grocery on Amazon
From the above pie- chart it is observed that 43.6% of respondents are due to its quality, 16.4% of respondents prefer to
save time, 25.5% of respondents prefer for discounts and offers and 14.5% of respondents prefer due to availability of wide products.
Mode of payment preferred
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From the above pie-chart it is observed that 67.2% of people prefer cash on delivery payment, 22.4% of people prefer
payment through phonepe or google pay, 7% of people prefer debit card and 4% of people preferred credit card.
Person who does grocery shopping in home?
From the above pie-chart it is observed 26.3% of respondents purchase grocery themselves, 26.3% of respondents father
purchases grocery, 15.8% of respondents mother purchase grocery and 7% of respondent’s grandparents purchase grocery.
Negative factors affecting Amazon online grocery selling?
From the above it is observed pie-chart it is observed 36.4% of respondents feel high prices on Amazon, 32.7% of respondents
refuse purchase due to delay of delivery time, 23.6% of respondents feel lack of direct contact of products and 7% of respondents
avoid purchase due to problem of payment process.
Highly purchased items on Amazon?
From the above pie-chart it is observed 50.9% of respondents purchase clothes, 38.6% of respondents purchase electronic
gadgets and 10.5% respondents purchase grocery.
How respondents got to know about Amazon grocery selling?
From the above pie-chart it is observed 36.8% of people has known from friends, 28.1% of people has known by
advertisement, 24.6% of people has known by their own information gathered and 10.5% of people has known from family.
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ISSN:2277-7881; IMPACT FACTOR :7.816(2021); IC VALUE:5.16; ISI VALUE:2.286
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Satisfaction rate of customers regarding Amazon grocery service
From the above bar- graph it observed that 25% of respondents gave rating of 8 and nearly 14% of people gave rating of 9
and 10. We can identify that rating of 5, 6, and 7 is given by equal percentage with 8.9% of respondents. The rating of 4 is given by
7% of respondents, 3 is given 5% of respondents, 2 is given by 3.6% of respondents and finally 1 given by 3.6% of respondents in the
survey.
How often Amazon is used?
From the above pie-chart it observed that 61.8% of respondents use Amazon monthly and 20% of respondents use Amazon
daily and 18.2% of respondents use Amazon weekly. We can identify respondents use Amazon mostly on monthly usage.
Findings
The following are the specific findings of the research:
In the selected group of population respondents are mostly in the age group pf 18-25
Respondents are mostly males so we can observe that males are purchasing on online mostly.
Respondents purchasing on online are highly from rural.
Amazon is most preferred site for grocery purchase compared to its competitors Flipkart and Groffers.
The factor that influences, customer to purchase on Amazon is the quality of product provided.
The most preferred type of payment mode preferred by respondents is cash on delivery.
The factor that effect respondent to refuse amazon grocery is its price strategy.
Respondents purchase clothes mostly compared to grocery on Amazone.
Suggestions
Based on the findings the following suggestions are placed to improve the customers preferences towards purchasing
grocery on Amazon.
The pricing strategies should be improved like providing more discounts and offers. The prices should be affordable to middle
class mostly.
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DOI: http://ijmer.in.doi./2021/10.08.22
ISSN:2277-7881; IMPACT FACTOR :7.816(2021); IC VALUE:5.16; ISI VALUE:2.286
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The payment process should be available in simple steps. The varieties of grocery products should be broad. The delivery time
also should be quick even in rural areas. The more grocery stores should be launched by Amazon in major areas.
Conclusion
Today internet is the user -friendly communication medium and its awareness and usage level is progressively increasing in
all segments of the society. Every product is now provided on online market as it is saving consumers time and energy. Some
categories of people are not much aware of this online availability of grocery but gradually online marketing would be adopted in all
areas. There is bright future for online selling of grocery.
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