Factors Affecting Willingness of Indian Consumers to buy from an Online Grocery Platform

Abstract

By this study, certain factors were tested which influence willingness of Indian consumer’s online purchase decision of grocery buying. These factors were offers like cashback and discount, convenience in terms of not going out, more variety, better quality, saving time, easy accessibility, returns, delivery time, delivery charges, cost, payment method, website design and interface, cash on delivery, trust on platform and customer issue resolve platform.

Design/methodology/approach - Data was collected by circulating a questionnaire to Indian consumers residing in Tier 1, Tier 2 and Tier 3 cities. Some of the respondents were also interviewed personally to understand their point of view. A total of 114 responses were recorded. Firstly, data was cleaned to remove inaccurate answers to questions. Further, Factor Analysis was performed in order to group variables having similar properties. Lastly Bivariate Logistic Regression was performed on these factors to identify which factors are significant out of all, which influence willingness of consumer’s online grocery purchase.

Findings – Total of 5 factors could explain 75.62% variability. After Bivariate Logistic Regression of these factors, 2 factors were found to be the most significant. They are Convenience and Delivery.