Intention of Millennials to use Online Grocery Shopping Services in India

Abstract

The paper seeks to identify and understand the various factors driving millennial’s intention to use online grocery shopping services in India. Shopping online in India has been growing at a rapid rate, with grocery e-commerce continuing to grow out of its infant stage. Shopping online has become a necessity rather than comfort for millennials due to a shortage of time. One commodity which wasn’t available earlier due to logistical issues can now be purchased online and delivered right at the customer’s doorstep. With an estimated CAGR of 55% between the period 2020-2026, grocery e-commerce is rapidly but steadily becoming the most frequently used form of online shopping. Close attention must be given to factors which might affect a millennial’s decision to buy grocery online or not. This paper seeks to understand the factors influencing customer’s motivation and decision to shop grocery online. Statistical tool like Spearman Rank Correlation was applied to test the formulated hypotheses from conceptual framework. The six determinants viz; convenience of shopping online, quality of goods available, flexibility of shopping online, personalization option, discounts available and variety of products available online have been found to have significance effect on a customer’s decision to shop grocery online.

Keywords: Online grocery shopping, millennials, buying intention, motivating factors, e-commerce.