Online Grocery Shopping and Consumer Perception: A Case of Karachi Market in Pakistan
Online Grocery Shopping and Consumer Perception: A Case of Karachi Market in Pakistan
Research Article
Received date: 15 August 2017; Accepted date: 22 November 2017; Published date: 12 February 2018
Copyright © 2018. Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali
Neha Shah and Saad Rafiq Surti. Distributed under Creative Commons CC-BY 4.0
Abstract
This research study aims to comprehend the attitude and behavior of Pakistani consumers towards online
grocery shopping. Factors identified (quality of product, service quality, guarantee on products,
convenience or consumers, cost of services and products, range of products and varieties, perceived risk,
social norms and design or interface of the online platform/website) in this research study can influence
customers to switch to online grocery shopping and adopt online shopping as their prime mode of
purchase. High perceived risk was observed to be the most important and significant factor in case of
online grocery shopping as compared to all other factors. Consumers who are less familiar with
technological devices find it difficult to trust today’s technology; these include, domestic housewives.
Whereas young generation is relatively excited about the emerging medium. Purposive and snowball
sampling techniques were used to collect the data using questionnaires. The results show that lack of
variety and overpriced products also appeared to be the major factor when choosing online grocery as the
prime source of shopping. This research study provides the existing online shopping trends and
perception of people towards online grocery shopping. Furthermore, this study provides insights into the
future scope of online grocery shopping trends in Karachi, Pakistan.
Keywords: Future scope of online shopping, online shopping, grocery shopping, Karachi, Pakistan,
attitude and behavior, online grocery awareness
______________
Cite this Article as: Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and
Saad Rafiq Surti (2018)," Online Grocery Shopping and Consumer Perception: A Case of Karachi Market in Pakistan ",
Journal of Internet and e-Business Studies, Vol. 2018 (2018), Article ID 931248, DOI: 10.5171/2018.931248
Journal of Internet and e-Business Studies 2
_____________________________________________________________________________________
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
3 Journal of Internet and e-Business Studies
_____________________________________________________________________________________
phone, tablet or other online devices (Statistica, save around 39% of their time, 36% of money and
2014). Express tribune, (2014), stated that the e- around 27% of fuel.
commerce industry in the Asian region has seen a
boom. Pakistan, though is a late entrant in e- In order to widen the scope, online grocery needs
commerce, however, a massive rise in online to focus on under stated areas:
shopping trends has been observed. In the next • Target Households: young urbans and families
five years it is expected that Pakistan’s e- • Meet Underserved Needs: highlighting
commerce market will surpass $1 billion. convenience
• Look for Cultural Hooks: try to get monthly
Online grocery’s market share in Pakistan is subscriptions etc.
around $25 million (Arshad, 2015). It is also
expected that Pakistan’s e-commerce revenue will Online grocery shopping helps buyers eliminate
reach US $ 600 million by 2017 (Ahmad, 2015). To the activity of physically visiting the stores,
further facilitate the adoption of online grocery, providing convenience to get things delivered on a
analysis of consumer needs and their behavior is single click, no standing in long lines and no
crucial. The study layouts consumer perception carrying of heavy bags. They also reduce
and readiness towards online grocery shopping unnecessary shopping habits and picking extra
and to highlight the pain points that need to be items while shopping in a store. It will quickly
eliminated for better acceptance of online grab the attention of consumers who are
platforms for shopping. procrastinators and are not fond of visiting the
stores. While people who visit physical stores in
Literature Review
terms of outing and for fun will still prefer brick
Researchers have worked a lot on online grocery, and mortar stores, unless they find some super
how consumers adopt a new buying behavior and quick delivery or discounts or coupons or other
what compels them to change their behavior. One order processing conveniences. However,
such research group is Hartman. According to considering the food culture it is evident that
Hartman, (2015), the attempt of selling grocery digital food will make its place and technology will
online in 1990’s appeared to be a failure, but now help earn greater shares. (Hartman Group, Forbes,
online shopping is taking over the shift. 2015).
Unquestionably, consumers are now more
interested in buying packaged goods that can be Nielson group investigated five factors to know
stored for days. This is also aiding the online about online grocery shopping, which are:
grocery trend. The increasing scope of digital
platforms has got many brick and mortar stores 1. Consumers love online grocery shopping but
worried for their digital presence as new digital it will take them time to get comfortable with
players are taking away their consumer share of it. The supply side needs to make the
wallet and are making presence in the consumer shopping experience easy by making user
mind. Many stores are now planning to enter into friendly interface of the web or app. It must
the digital era and create their presence online be easy to navigate and provide time saving
(Hartman Group, Forbes, 2015). and efficient delivery service.
2. Online store should provide maximum
Hartman group (2015) is of an opinion that Brick number of listings and product options to
& Mortar stores will not completely get off the choose from as it is different to buy online
market but few shoppers are getting over the than offline. The e-store should have good
conventional notion of doing grocery. Important number of packages and categories available.
point to ponder over is the idea that, will online 3. Consumer perception and behavior while
grocery shopping become acceptable and provide buying online is affected in various ways. It is
share of wallet from a good number of important to provide an easy to use platform.
consumers? Hartman Group (2015) report states Greater variety would help the buyer choose
that online grocery shopping helps early adopters and make comparisons.
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
Journal of Internet and e-Business Studies 4
_____________________________________________________________________________________
4. Online shopping has greater transparency, Proliferation of products and fragmenting of media
price visibility, extensive distribution and reduces the number of brand choices consumers have
customization available. to face. Bombardment of information also reduces the
5. It is important to build proper marketing interest of consumers in a wide range of options and
strategy to align your store with the best they tend to purchase the product which they
marketing strategies to increase interactions considered initially. In this scenario brand awareness
and link customers with your brand. Create, is the key for the selction of a particular
excite, bring innovative ideas and build product/brands (Court, Elzinga, Mulder and Vetvik,
relationship on social media platforms along 2009).
with spreading awareness.
Consumers now tend to pull information about their
Court, Elzinga, Mulder and Vetvik, (2009) options before purchase. The most effective form of
researched about the process the consumer goes information perceived by the consumers includes
through while making a decision. According to positive word of mouth received from peers, family
them, the aim of marketing is to reach the target members or friends and online reviews. However,
audience the exact moment that will most influence authentication of online reviews is also an important
the decision of the consumers. Marketers try to factor. In case of brick and mortar stores in-store
identify those specific moments and term them as interactions with the retailers, other buyers, purchase
touch points to influence customer decisions. experience and recollection of past experience plays a
Consumers use a funnel approach to reach a final significant role in consumer decision making. The
decision. Consumers start with a wide range of cycle does not end at the purchase but continues and
options (brands/products) and start to filter them moves into the post purchase experience of the
methodically till they reach to a single brand which consumer which will either make the consumer loyal,
they opt to purchase as a final solution to their need. defector or a dissatisfied lost client for the company
However, in the modern time due to an explosion of (Court, Elzinga, Mulder and Vetvik, 2009).
options present in the market for consumers along
with digital channels to seek information about those Even amongst loyal consumers there are two types
options, the funnel approach is a failure. To overcome the active loyalists who not just keep the specific
this failure a new approach called consumer decision brand as their first choice but also generate positive
journey has come into play. This approach facilitates word of mouth and promote a company’s brand.
geographic markets using different forms of media to While, the others are passive loyalists who purchase
access information regarding product choices. the brand but are not committed towards it.
Furthermore, this type of loyalists are open to
In the cluttered and proliferated market, marketers messages and offers from the competitors and will
need to develop new methods to get their products in switch to the competitor’s brand when given a choice
consumers’ list of consideration of valid options. In that they consider better than the current choice that
the past marketers were the only influencers of your company brand is offering to them. Therefore,
decision making through one way communication companies should spend more time and effort to
however, now the consumers not only influence the increase the base of their active loyalists (Court,
marketers but also each other through feedbacks and Elzinga, Mulder and Vetvik, 2009).
reviews on digital platforms about products and
services. Now the consumers are generating Marketers should perform four kinds of activities in
marketing content on behalf of the companies and order to influence consumer decision journey
marketers in many situations. The companies can use
this to their advantage by reinvigorating their loyalty • Prioritization of their objectives and spending
programs and by aligning their message, strategy and accordingly
spending to create a worthwhile experience for the • Tailor made messaging/customized messaging
target audience (Court, Elzinga, Mulder and Vetvik, • Investment in consumer-driven marketing
2009). • Win the in-store battle
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
5 Journal of Internet and e-Business Studies
_____________________________________________________________________________________
Marketers are aware of the changes in the decision 4. Compatibility refers towards the match
making dynamics of consumers and have adopted up/congruency of the innovation with the past
new strategies to keep up with their target audiences and current values of the consumer
however, even then they have to face failures and 5. Relative advantage refers towards the
defeat. consumers’ perceived usefulness of the
innovation and consumers’ perception
Hansen (2005), identified that consumers who regarding its superiority in comparison to
purchase groceries online perceive that this mode other competitor innovations
of purchase id different from purchasing the same
products from a brick and mortar store. The In addition to this, perceived internet grocery
experience consumers receive while shopping for buying risk should also complement the stated 5
groceries online is quite different as it provides factors by Rogers. Three segments of various
consumers with several benefits including types of consumer adoption behavior were
convenience, time saving and any time ordering considered.
facility from anywhere.
a. Segment 1: non-adopters of online shopping
Hansen (2005) categorized innovation into 3 b. Segment 2: online shopping adopters
types (excluding groceries)
a) Discontinuous innovation c. Segment 3: adopters of online shopping and
b) Dynamically continuous innovation online grocery-shopping
c) Continuous innovation
Adopters of online grocery shopping tend to
Hansen (2005) suggested that in case of shopping attach higher relative advantage, lower complexity
online the type of innovation employed was higher compatibility, and more positive social
discontinuous innovation because this type of norms to online grocery shopping in comparison
innovation uses technological advances linked to non-adopters of online shopping. Furthermore,
with changes in consumer behavior. Therefore, it was observed that the online shopping adopters
developing an understanding of such innovations tend to have higher annual income in comparison
plays a crucial role in their adoption. to non-adopters of online shopping which implies
that higher buying power increases consumers
Rogers gave 5 factors to increase the rate of risk taking (Hansen, 2005).
acceptance and adoption of such innovations:
For success online grocery platforms need to
1. Communicability of the innovation. Which adapt to the needs of the consumers and identify
implies that how easy it is for consumers to the daily hassles the consumer faces. Assuming
observe the innovation and further that consumers will compromise on their needs is
communicate the usage of the innovation to a farfetched idea if the online grocery platforms
other potential consumers believe in it. These platforms should make the use
2. Triability or divisibility implies the of online grocery platforms easy and convenient
possibility of a consumer to try the innovation for the users. Marketing the relative advantages of
without incurring any large investments using online platforms for shopping groceries can
3. Complexity implies that how difficult it is for be the first step towards success for such business
the consumers to use the innovation models (Hansen, 2005).
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
Journal of Internet and e-Business Studies 6
_____________________________________________________________________________________
Conceptual Framework
The conceptual framework studies the impact that • Avenue: Avenue refers to the situational
the pre-established buying behaviors have over context of a grocery store. We intend to study
the attitude towards online grocery buying. Both what a consumer prefers in terms of size and
the buying behaviors of grocery shopping and the location of the store. Is a local consumer
attitude towards grocery shopping are further satisfied going to a small general store to buy
analyzed through few factors which are discussed groceries, situated at the end of his street? Or
in the following section. does he prefer to visit super stores and does
not mind taking out his car for that?
The conceptual framework initially studies the • Content: Content refers to the products that
generic buying behavior of a consumer towards make up the consumer’s grocery list and are
buying grocery. The intention is to analyze purchased on a regular basis.
whether the current buying behaviors of local • As mentioned above, the conceptual
consumers are deeply rooted or not? In an actual framework intends to gauge the extent to
market setting, the factors and behaviors which the buying behaviors towards grocery
associated with buying grocery are immense. shopping are rooted in our local consumers.
However, in order to narrow down our research The higher the frequency, the higher the
to focus on few significant behaviors, this research acceptance towards different grocery avenues
study intends to examine three main factors and higher the list of items purchased – would
associated with buying grocery, which are as translate into deeply rooted buying behaviors
follow; which are hard to overcome since they come
naturally to consumers.
• Frequency: Frequency refers to the number
of visits done to a grocery shop in a said time The given state of buying behavior and the
period. For instance - daily visits, weekly established extent of its strength has a direct
visits, bi-monthly visits or monthly visits. impact on a consumer’s attitude towards online
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
7 Journal of Internet and e-Business Studies
_____________________________________________________________________________________
grocery, which is the second part of our three focuses on questions regarding their
conceptual framework. The four primary factors perception towards online grocery, their
which can be studied in order to gauge the willingness to buy and the factors that refrain
consumer’s attitude towards online grocery are as them to buy online grocery. Section four consists
follow; of Likert scale questions to assists in knowing the
opinion of people regarding online grocery
• Awareness: Are the local consumers even shopping, their preferences and value proposition
aware of such a concept of buying groceries they are looking for. Section five consists of
online? questions that gauge consumer readiness towards
• Perception: How do the local consumers online grocery shopping.
perceive online grocery?
• Willingness: Are the local consumers willing We distributed our questionnaire to respondents
to try online grocery? who are aged 18 years or above. The
• Readiness: On what readiness stage are the questionnaires were further divided into 3 target
local consumers in terms of online grocery markets.
buying? (Buying Readiness Stages: Awareness,
Interest, Desire and Action) A) Domestic household consumers
B) Professionals
Attitude towards online grocery buying can be
said positive if the aforementioned four factors are In the process of our research we identified a new
high/positive. Which means for an attitude to be target market and included it as part of our
positive, a local consumer should have acceptable research i.e. lives alone, Students and young
levels of awareness, positive perception, and professionals who live alone in Karachi.
positive willingness and should be at least
Research Questions
interested in doing groceries online.
1. What is the current understanding of online
Since the concept of online grocery is of novel grocery in Pakistan?
nature in local market - thus, online grocery model 2. What is the general attitude of consumers
can only be adopted by local consumers if attitude towards online grocery?
towards online grocery is positive and it does not 3. What factors are important to increase the
adversely interplay with the pre-established adoption of online grocery?
grocery buying behaviors (Ali et al., 2017). 4. What value a consumer wants an online
grocery store to offer?
Methodology
Hypotheses
The research targets the sample population of
consumers drawn from Karachi who have or do H1: Local consumers are not aware of online
not have any previous experience of online grocery shopping in local market
grocery shopping. The sample size for the study
was 90 individuals and it employed purposive and H2: Local consumers don’t have positive
snowball sampling techniques to get data from the perception towards online grocery shopping in
respondents who were best suited for the local market
research at hand. Data were collected primarily
H3: Local consumers are not willing to experience
using questionnaire technique. The research
online grocery shopping in local market
questionnaire caters to five sections of questions
designed to know different aspects of consumer H4: Local consumers are not ready to adopt online
behavior. Section one includes questions related grocery shopping in local market
to the demographic profile of respondents such as
gender, age, relationship status, education etc. Analysis and Discussion
Section two consists of questions that relate to
general online shopping and awareness of online The internet phenomenon is providing a new
grocery and grocery stores in Pakistan. Section mode to do business in Pakistan. With E-
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
Journal of Internet and e-Business Studies 8
_____________________________________________________________________________________
commerce expected to become a $1 Billion Naheed or Aghas. They make informed and
industry by 2020 (Tribune, 2015), the future planned purchase decisions unlike the live
outlook is bright with immense potential in all alone. For them, variety is important and
areas for this yet untapped market of 200 Million becomes an important factor in choosing
people of Pakistan. This massive transformation is the shopping venue as well. Despite low
leading a behavioral change in consumers as to awareness to the online model, 53% of the
how they shop for products and services across respondents favored towards giving the
the board ranging from grocery items to online model a try. This reflects that the
automobiles. The focus of this paper will be on segment does have a potential but needs to
grocery products. be pitched across the right touch points.
Again, to tap this segment we need to align
On our fact finding journey, we further conducted the product simultaneously on convenience
a thorough research and survey analysis and variety which will in turn be a
pertaining to the Pakistani market. The idea was determinant of how price sensitive they
to understand the different consumer (professionals) become to that offering. But
perspectives as to how they view the online one obstacle identified in the responses
grocery model in Pakistan. For the purpose of was the physical inspection of the product,
simplicity we have categorized the respondents the answer to which lies in ‘360 degree’
into three groups which are as follow: display of products on the webpage along
with clear photography to make the
1) Domestics: This segment is comprised of the products vivid and more observable to the
local households of Karachi including both users. Factors like quick delivery,
men and women. Traditionally women in promotional offers and discounts coupled
domestics lead all the major purchase with authentic brand portfolio is what they
decisions for their households and have deep are looking for. However despite the odds,
rooted cultural preferences as to what and the working women are willing to pay 5-
where to buy from. It is a planned purchase for 8% premium if they are able to get the
them, which occurs on a monthly basis, mostly right product at the right moment. Bundle
at super markets and large retailers. Although offers from multiple brands under one roof
they share the same touch point as can again come in handy to attract such
professional women but are slightly more visitors over the website.
complex in their selection of products. An
important aspect is their lack of awareness for 3) Live Alones: As the name suggests, this
the online model coupled with their ability to class of respondents are people who are
access computers and doubts about online living single-handedly for education or
buying of goods. For them, understanding of job purposes in Karachi. With more than
the model and addressing their fears is the 70% being male and falling in the age
first step towards their road to online bracket of 20-29, they have a high
shopping. Simple questions ranging from the preference for home cooked meals and
time taken to deliver goods to the quality of are the decision makers when it comes to
the products supplied need to be promoted grocery buying. Normally the ‘live alones’
through well advocated channels. don’t have a planned purchasing pattern
Furthermore the responses also uncovered the but they do make weekly purchases based
use of single products in the initial phase to on their need. Although only 20% of the
encourage trials. respondents were familiar with the online
model for grocery but willingness to try
2) Professionals: These respondents were was higher, making them a viable target
women belonging to the age bracket of 20- to pursue. Being a highly price sensitive
29. For them grocery shopping is an audience and significant preference for
experience which they enjoy; particularly if convenience, bundle offers is the ideal
it involves going to the supermarkets like way to attract ‘live alones’ for online
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
9 Journal of Internet and e-Business Studies
_____________________________________________________________________________________
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
Journal of Internet and e-Business Studies 10
_____________________________________________________________________________________
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
11 Journal of Internet and e-Business Studies
_____________________________________________________________________________________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
Journal of Internet and e-Business Studies 12
_____________________________________________________________________________________
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248
13 Journal of Internet and e-Business Studies
_____________________________________________________________________________________
22. Park, A. C. W., Iyer, E. S., Smith, D. C., Iyer, E. S., https://www.statista.com/markets/413/ecomme
& Smith, D. C., 1989. The Effects of Situational rce/U.S. Census Bureau News. (2016). Retrieved
Factors on In-Store Grocery Shopping Behavior: from
The Role of Store Environment and Time Available http://www.census.gov/retail/mrts/www/data/
for Shopping. Journal of Consumer Research. 15(4), pdf/ec_current.pdf
422-433.
26. Tribune., 2015. By 2020: Pakistan’s e-
23. Pozzi, A. (2012). Shopping cost and brand commerce market to surpass $1 billion. Retrieved
exploration in online grocery. American Economic May 23, 2017, from
Journal: Microeconomics, 4(3), 96–120. https://tribune.com.pk/story/1016706/by-2020-
pakistans-e-commerce-market-to-surpass-1-
24. Pozzi, A. (2013). The effect of Internet billion/
distribution on brick-and-mortar sales. The RAND
Journal of Economics, 44(3), 569–583. 27. Wharton., 2015. Online Groceries in India: Will
25. Retail, G. T., & Survey, C., 2015. Total Retail Consumers Bite? Retrieved July 9, 2016, from
2015 (February). Statistica. (2016). ECommerce. http://knowledge.wharton.upenn.edu/article/onl
Retrieved June 26, 2016, from ine-groceries-in-india-will-consumersbite/
______________
Mariam Saleem, Marium Mateen Khan, Mohammad Ekhlaque Ahmed, Sanober Ali Neha Shah and Saad Rafiq
Surti (2018), Journal of Internet and e-Business Studies, DOI: 10.5171/2018. 931248