ACIS 2024 Proceedings

Abstract

The rise of online grocery shopping in India is driven by increasing internet usage, smartphone proliferation, and a shift towards convenience and quick delivery. Customers are also motivated by the availability of quality products, discounts, and special offers. Despite extensive research on the factors influencing online grocery adoption, less attention has been given to segmenting these shoppers. This study addresses this gap by using a literature review and qualitative data to identify key attributes influencing online grocery experiences. A survey of 363 Indian online grocery shoppers led to an exploratory factor analysis of 20 statements on these attributes, resulting in four factors: purchase experience, post-purchase experience, monetary benefits, and non-monetary benefits. These factors were used in hierarchical and k-means clustering, revealing three distinct consumer segments: The Educated Customer, The Bargain Hunters, and The Loyalists, each differing in their perception of online grocery benefits. The results showed statistically significant differences between clusters regarding intention, use, satisfaction, loyalty, and demographics.

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