Introduction
Background
Online retailing has gained massive growth over the past decades as many people find it to be the most convenient way of purchasing various items that they need. According to Pauzi et al. (2017), NetMarket (Internet Shopping Network) was the first company to conduct a secure retail transaction in an online platform in 1994. Amazon.com followed the same path a year later in 1995 when it launched its online shopping site, specifically for books before expanding its product portfolio. Later the same year, eBay joined the market as the usage of internet became more common. At the time when these three firms started their operations, most of the dominant retailers, such as Walmart, offered their products using the brick-and-mortar business model. The executives of these large retail stores did not believe that there was a meaningful potential in the online platform. As such, they ignored it for over a decade as they focused on expanding their physical outlets in major cities and towns around the world. During that period, online retailing continued to grow exponentially, especially in developed economies.
Various factors contributed to the rapid growth of online grocery retailing. Walker and Lee (2020) explains that the number of those in gainful employment in the United Kingdom has been growing rapidly over the recent past. It is common to find both parents working in the modern society, unlike in the past when men were viewed as the primary breadwinners (Singleton et al., 2020). Some of them are forced to take two or three jobs to ensure that they earn enough to provide for the needs of their families. As such, they rarely have time to physically visit these brick-and-mortar stores to purchase groceries they need.
The online platform offers the best opportunity for them to buy these items. While in office or when at home, they can easily order for their groceries through various platforms currently available and their goods will be delivered to their homes or at their office. The need for convenience has seen many people opt to purchase their products through these platforms (Pitts et al., 2020). It is also important to note that one can easily compare product prices by visiting various platforms and selecting the one that they believe offer the best value.
The outbreak of COVID-19 has led to a massive growth of online marketplace. As health experts continued to warn people against physical interactions, many people had to find alternative ways of purchasing their groceries. When the government used lockdowns as a means of minimizing movement and interaction of people to help lower the spread of the virus, many were left with no option but to purchase their products through online platforms. During this period, online retailers experienced massive growth, with most of them registering over 45% increase in their sales in the year 2020 (Walker & Lee, 2020). Competition also became stiffer than before as dominant players were keen on expanding and protecting their market share.
Understanding factors that influence consumer selection for online grocery retailer is critical for these firms when developing their strategic market plans. They need to understand how customers make their decisions when they intend to purchase items in an online platform. Unlike in a physical shop where a customer get to see, feel, and even test a product they want to buy, clients in online platforms only have to trust that the seller will deliver on their promise (Rogus et al., 2020). They are not guaranteed that what they see on the display and pay for is what shall be delivered to them. As such, they have to take into considerations various factors before deciding on the online retailer. In this study, the researcher seeks to investigate key factors that influence the United Kingdom’s consumer’s selection for online grocery and their impact.
Rational
The online grocery retailing industry in the United Kingdom has been growing rapidly over the recent past and firms are keen to ensure that they achieve sustainable development. Through this study, individual firms will understand the decision-making process of customers whenever they plan to purchase an item through these platforms. Of interest when collecting and processing data from various sources was to ensure that the suitability, acceptability, and feasibility of the study is protected. Suitability was taken into consideration by ensuring that this research covers the academic gap and delivering the full coverage for the consumer perceptions. This has aligned with the academic learning for business strategy, operation and marketing to prove the feasibility for the study. Acceptability was maintained by ensuring that the research provides the huge benefits to peer research academics, manager of the supermarkets, entrepreneur, authorities as well as other stakeholders. As such, the study leads to findings that can transform academic benefits into the more practical value creation in the industry.
In terms of feasibility, the research focused on collecting the views from the UK consumers to obtain primary data and information from existing secondary sources, to have a reliable data that would inform conclusion and recommendations made in this report. The goal was to have data that is based on facts to help guide policy-makers, industry players, scholars, and any other stakeholder that may find this document relevant. Most specifically, this report will be relevant to online grocery retailers that are keen on understanding how customers make their decisions when purchasing products in online platforms. It will enable them to understand how to position their products and brands. They will also know how to communicate with them more effectively and to deliver products once they are purchased.
Statement of Research
The online grocery retailing industry has been growing consistently over the past two decades. However, Pitts et al. (2020) observe that for a long time, it has been considered an industry that complements the brick-and-mortar retailing. The events following the outbreak of coronavirus strongly demonstrated that the future of retailing is rapidly moving towards the online platform. Driediger and Bhatiasevi (2019) explain that ordering products from various online platforms has been proven to be safe and eliminates impulse buying that is always motivated by attractive displays. Despite this growth and attractiveness of the industry, some concerns still exist that stakeholders, especially the retailers, are yet to effectively address.
Customers are still concerned about the security and safety of their bank accounts whenever they make purchases using their credit or debit cards. Cybercrime has become one of the major challenges that these stakeholders have had to deal with when trading in the online platform. Techno savvy criminals are currently targeting clients when they purchase their products from online platforms with the aim of stealing their savings (Walker & Lee, 2020). Some of the potential clients prefer making their purchases from brick-and-mortar stores as a way of minimizing the possibility of losing their savings to these criminals. There is also the concern about the ability to get the exact item that a customer ordered for when making their purchase. The fact that they cannot feel and physically test the item they are buying means that they have to rely on trust. However, Singh and Rosengren (2020) believe that cases arise when they end up with products that do not meet their expectations. Quality and price are the other issues that are always of concern to these customers.
The research will discuss these factors and how they impact the buying behavior customers in the United Kingdom. This report will provide a detailed explanation of why customers prefer purchasing products from specific platforms. In the United Kingdom, Amazon and eBay have remained the dominant players in the online retailing industry (Rogus et al., 2020). The investigation will explain what these firms are doing right that has enabled them to create a pool of loyal customers. The information will help other firms to develop effective strategies of maintaining their customers in this highly competitive business environment.
Aim and Objectives
When conducting a research, it is critical to define aim and objectives that a researcher seeks to achieve. Singh and Rosengren (2020) explains that defining the aim makes it possible to understand the path that one seeks to take to ensure that the study is successful. The research aim is to identify, evaluate and discuss the influencing factors for UK consumers on selecting their online grocery shopping. To achieve this aim, the researcher set the following specific objectives that had to be realized through collection and analysis of both primary and secondary data:
- To understand the core concept for online grocery shopping and UK consumer decision;
- To identify the key influencing factors on their selection of online grocery shopping;
- To critically discuss and evaluate the implication for the influencing factors
- To make recommendations to stakeholders such as supermarkets to improve their attractiveness and competitiveness in the highly dynamic UK online grocery market
Research Questions
The researcher developed specific questions that were meant to guide the actual process of data collection. These questions formed the basis of the questionnaire that was developed to help in the collection of primary data from sampled respondents, as discussed in chapter three of this document. The following is the primary research question for the study:
- What are the key influencing factors and their impact on UK consumers’ selection for online grocery retailer?
It was necessary to have supporting research questions to facilitate the collection of data on various aspects of this investigation. The following are the supporting questions to the above primary question:
- What are the key influencing factors for UK consumer’s online grocery shopping?
- How do these factors influence the decision makings process of consumers?
- How can businesses achieve market success based on the outcome of the study?
Contribution to Knowledge
The report will make an important contribution to the already existing bodies of knowledge on this topic. The researcher focused specifically on investigating key influencing factors and their impact on UK consumers’ selection for online grocery retailer. Retail outlets need to know factors that often influence the decision of their targeted customers. As Singh and Rosengren (2020) observe, some of these firms emphasize the need to charge competitive prices as a way of attracting more customers. However, there are numerous other factors that define the decision that customers make when they plan to make their purchases. Through this study, players in this industry will understand key factors that they have to consider to ensure that they remain attractive to these customers. This report will be an important literature to scholars who may want to conduct further investigation in this field. It will offer them important insight on issues that customers consider when they purchase products from online platforms. The methodology used to collect and process data in this project is also articulated in clear terms. Future scholars may find it necessary to follow the same approach when conducting their studies.
Literature Review
Consumers’ selection for online grocery retailer often depends on numerous factors. According to Walker and Lee (2020), when Amazon.com and eBay started their online operations, the concept was new and most of the mainstream retailers ignored them. However, that changed as it became apparent that many consumers were embracing this new business model as a more convenient way of purchasing items they need than the traditional brick-and-mortar model. As many large firms started making online operations, competition became stiff and consumers were presented with various options whenever they wanted to purchase groceries from the online platform. It has become important for players in this industry to understand key influencing factors and their impact on United Kingdom’s consumers’ selection for online grocery retailer. In this section of the report, the focus is to review the literature to comprehend what other scholars have found out in this area of study.
Understand Consumer Decision-Making Process
In a market where competition is relatively high, customers tend to be choosy and take a relatively long time to select a preferred retailer as they try to assess the one that offers the best value at the lowest cost possible. Figure 2.1 below identifies the five main stages that a consumer goes through whenever they intend to purchase a product in the market. The first stage in this model is need recognition. At this stage, a customer realizes that there is a need to purchase a given item to fulfill a specific want. The second step is the search for information (Rogus et al., 2020). The consumer will be focused on determining how various products can meet their need in the best way possible. Evaluation of alternatives is the third and very important stage that retailers are often keen to influence.
The consumer will assess each of the possible items that they feel can address their needs. Factors such as quality, quantity, price, the strength of the brand, and convenience among others will be considered at this stage. Retailers often win or lose customers at this age depending on the leverage that customer feel one brand has over the rest. The fourth stage is the purchase decision. At this stage, the consumer will make the decision to purchase a given product from a specific retailer after assessing all the available alternatives. It is always a sign that the customer has settled on the retailer that they believe offers the best value at the lowest cost possible (Driediger & Bhatiasevi, 2019). The last stage is often referred to as post-purchase dissonance or evaluation.
When the purchase has been made and the customer is consuming or has consumed the product, they will assess how well it meets their expectations. If their expectations are exceeded, they will be thrilled and can become evangelists for the brand, convincing friends and family to make similar purchases. If their expectations are met, they will be satisfied and will become loyal customers. In case their expectations are not met, they will be dissatisfied and will avoid making similar purchases in the future (Rogus et al., 2020). They will also influence those who are close to them to avoid the brand or the retailer.
Key Influencing Factors and their Impact on Consumer Selection for Online Retailer
Online grocery retailing has become increasingly competitive as many firms make an entry into this market. Driediger and Bhatiasevi (2019) explain that unlike brick-and-mortar retailing that had numerous entry barriers such as high cost of renting outlets and strategic locations and hiring numerous workers at the stores, online retailing is simpler. Sometimes a retailer does not even need to have a store. They receive an order, process it, pick the needed item from the producer, and then deliver it directly to the consumer. This simplified version of retailing has attracted numerous companies that avoided in this industry in the past. It has created a still competition, offering customers numerous choices whenever they plan to purchase their grocery. The following are some of the factors that influence the selection for online retailer and their impact.
Trust
Purchasing an item in an online store is significantly different from doing so from a brick-and-mortar outlet. In this case, the client lacks the capacity to physically assess the item for quality and other desired attributes before making payment and leaving with the product. In this case, a customer will make their payments, hoping that the retailer will deliver on the promised value. As such, one of the key influencing factors for consumer selection for online retailer is trust. These customers want to trust that once they make their payment for a given product, it will be delivered at the right time based on the selected value.
There have been cases where the product delivered does not match what a customer had paid for when making their order. In other cases, the retailer may fail to deliver products within the promised period. When purchasing groceries, issues such as time of delivery and the quality of the product delivered are critical in influencing their selection of a specific retailer (Rogus et al., 2020). The impact of this factor is that a consumer will remain loyal to a specific retailer as long as they can trust them to deliver the right quality products at the promised time.
Security
The security of the client when they are purchasing items in online platforms has become one of the most important factors that define how online shoppers select their retailer. According to Walker and Lee (2020), cybercriminals have perfected the art of identity theft and other strategies meant to steal from online shoppers. The issue of cyber insecurity affects both the retailer and their customers who are constant targets of these criminals. On most of the cases, they steal credit card details of the customer so that they can withdraw money from their accounts.
Customers are concerned about the safety and security of their credit cards every time they make their purchases. They want an assurance from their retailers that when they use their credit cards to make online payments, they will not be exposing their bank accounts to online criminals (Berg & Henriksson, 2020). When trying to address this issues, customers tend to trust established online retailers such as Amazon.com and eBay because these firms have made heavy investment in enhancing their cyber security. Their many years of operating in this industry has enabled them to understand how to address such concerns and to ensure that their clients are always protected.
Price
When issues about trust and security have been addressed, a client will also want to consider other factors when making their selection of an online grocery retailer. One such defining factor is the price that a firm charges relative to that of rival brands. Pitts et al. (2020) note that in most of the cases, price has been used as a way of explaining the value of a product to customers, which means that a high price shows that the product is of high value, and vice versa. However, these are cases when customers are aware that the value that different companies offer are almost the same, and as such, pricing become an important factor when making their selection. Amazon.com has gained massive growth in the United Kingdom because of using the pricing strategy. Using various cost-cutting strategies, the company has been able charge relatively low prices on its products. As such, it has remained attractive to price-conscious customers. The firm has also made sure that as it sets relatively low prices for its products, the quality that it offers is not compromised.
Quality
The quality of product that a firm offers to its customers is a key influencing factor that defines consumers’ selection for online grocery retailer. In the traditional retailing model where customers have to visit a physical store, it is possible for a buyer to assess what they are purchasing to determine the quality. However, such an opportunity is always unavailable in the online retailing business model. A client can only hope that the product that will be delivered to them is of the right quality. A firm that seeks to influence online grocery buyers must emphasize delivery of quality products.
They must ensure that they understand specific needs of their consumer when an order is made, and then make a deliberate effort to meet that need in the best way possible. In grocery retailing, it means that the firm has to ensure that its food items are fresh and of the right standards. As Walker and Lee (2020) observe, genetically modified organisms (GMO) has become a major concern in the modern society. Many consumers prefer organic food products as opposed to GMOs. A retailer should be sincere enough to help its clients select the product they desire, even if there is a difference in price between the two.
Convenience
Convenience is one of the main factors that has led to the massive growth of online retailing in the modern society. According to Singh and Rosengren (2020), it is common to find many families in the United Kingdom having both partners in gainful employment. It means that they rarely have time to go for grocery shopping. Online shopping offers them the best solution to this challenge. The issue of convenience in online shopping arises when the retailer avoids specific locations when delivering their products (Berg & Henriksson, 2020). A retailer may avoid a location because of issues such as insecurity in the area, inaccessibility, or limited number of people that makes online retailing less viable.
Delays in delivering a product once a client makes purchases also causes issues of convenience. Customers prefer a grocery retailer that can deliver their products at their preferred location, which can be at the office or home, within the stated time. They also want to trust that once they make their payment, they will not be cancelled for unsatisfactory reasons. Convenience can also be enhanced by having various payment options (Rogus et al., 2020). Customers should have the ability to use their credit cards, debit cards, mobile money, or any other reasonable platforms to make their payments.
Diversity and availability of product
The concept of ‘all under one roof’ gained massive popularity in the traditional brick-and-mortar business model. It involved the retailer having almost every item that a buyer may need in the store (Driediger & Bhatiasevi, 2019). It meant that such a customer would not need to visit several stores to purchase items that they need. The same concept has also gained popularity in the online retailing platforms. A client would prefer purchasing all their groceries from a specific retailer instead of having to order from different retailers. As such, diversity and availability of products is a key influencing factor when they are selecting an online grocery retailer.
When they realize that a specific retailer is incapable of meeting all their grocery needs, they will prefer other available competitors. Berg and Henriksson (2020) also note that customers tend to be frustrated if they are constantly informed that the product they need is unavailable. It creates the impression that the retailer is not serious enough to meet customers’ needs. Instead of purchasing few items that they can get from that website, they will look for a different online grocery retailer that can meet all these needs. Sometimes a client may be willing to pay more when they are assured that the retailer offers a wide variety of all the products that they need.
Branding and marketing
When customers are making their purchasing decisions in a market that is highly competitive, one of the factors that may define their choices is the brand and marketing strategies of a firm. As Pitts et al. (2020) observe, brand is a powerful tool that helps a firm to outrival competitors in the market. In the online retailing platform, Amazon.com has created a strong brand name that is trusted by a wide range of customers. Whenever one is intending to purchase an item on an online platform, one of the first sites they will visit will be Amazon.com and eBay. As the brand continues to gain strength in the market and trust of customers, chances are that it will be the preferred shopping platform for the majority.
Studies have also shown that when a customer chooses a specific platform, such as eBay, as the preferred online grocery retailer, they are less likely to switch to other platforms unless they become dissatisfied with products that the current seller is offering. Marketing is another factor that influence the decision of these buyers. The strategy that an online retailer uses to promote its products and convince customers that they offer the best products influences traffic on their website (Berg & Henriksson, 2020). Such promotional campaigns reminds customers that instead of sticking with their current seller, they should visit other available retailers that may have better deals.
Feedback
The feedback that customers get from their retailers have a significant influence on their selection of grocery retailer. When making their shopping, it is common for a buyer to be dissatisfied with a given product. Some groceries such as milk, meat, fish, and vegetables are highly perishable (Berg & Henriksson, 2020). A customer may purchase such a product and fail to store them at specific temperatures, which means that they may perish before being used. The buyer may then blame the retailer for their own mistake. When they contact the retailer, the feedback they get may define their loyalty to the firm.
It is important for the retailer to explain to the customer what went wrong, and if possible, offer to compensate them for their loss. They can also offer a simple explanation to these customers on how to preserve these perishable products once they are delivered. Effective communication may have a major impact in creating a lasting relationship with the client (Driediger & Bhatiasevi, 2019). It demonstrates that the seller cares and is interested in addressing customers’ concerns. Most of these online retailers have created platforms where customers can give their feedback, whether positive or otherwise. It is advisable for the marketing unit to go through these feedbacks regularly and respond to individual comment, while at the same time using the information to improve on their products or product delivery strategies.
Impact of Self-Concept and Lifestyle on the Selection Process
Factors that influence consumer’s selection of an online grocery retailer may have less to do with strategies that these companies use and more to do with the consumer specifically. Self-concept theory may help in explaining this issue. Walker and Lee (2020) define self-concept as how an individual perceives self or their behavior in the market place. The perception that one has of self often defines their lifestyle and choices that they make whenever they want to purchase a product. As shown in figure 2.2 below, self-concept may be defined by internal or external influences. Internal influences include factors such as learning, perception, memory personality, attitudes, and emotions. External factors include culture, subculture, demographics, preference groups, social status, marketing activities, and family.
Both the internal and external forces have a massive influence in defining one’s self-concept. For instance, when one wants to be seen as belonging to a given social status, they will only purchase their groceries on specific platforms they consider demonstrates their class. They will ignore other factors such as cost just to demonstrate to the society that they are of that class. On the other hand, if one’s self-concept is that of a middle or low class, they will tend to prioritize quantity and price when making their purchases. Online retailers may not have the capacity to define this self-concept (Singh & Rosengren, 2020). Instead, they need to understand these customers, classify them accordingly, and provide to each group products that meet their unique needs in the best way possible. As shown in the figure below, self-concept defines one’s lifestyle, which then determines their decision-making process. Their selection of the online grocery retailer will significantly be influenced by these factors.
Methodology
The previous section focused on providing a detailed review of the literature to understand what other scholars have found out in this industry. In this chapter, the focus is to provide a detailed explanation of the method that was used to collect and process data. The researcher used data from both primary and secondary sources. Secondary data was obtained from books, journal articles, and reliable online sources. These sources formed the basis of the literature review conducted in the previous chapter. Primary data was obtained from a sample of respondents who were considered to have the needed information on this topic based on their knowledge and experience in this field. This chapter provides a detailed discussion on how data was obtained from this participants and processed to respond directly to the research question.
The researcher relied on primary data collected from the sampled respondents to directly respond to the research questions, using data from secondary sources as supportive information. Using the research onion, shown in figure 3.1 below, the chapter discusses research philosophy considered appropriate for the study. The chapter explains the approaches, strategies, choices, design used in processing the collected data based on the criteria explained in the research onion. The actual process of data collection, analysis, and presentation of data is explained. The chapter then provides an explanation about research ethics that were observed when collecting and processing data, and when writing the report.
Research Philosophy
The figure above shows that one of the first steps that a researcher has to take is to define the philosophy that would guide assumptions to be made in the study. Positivism, realism, interpretivism, and pragmatism are some of the possible philosophes that one can use, depending on the specific aim of the research. After assessing the four philosophies, the researcher considered positivism to be the most ideal philosophy that could help in explaining key influencing factors and their impact on UK consumers’ selection for online grocery retailer. This philosophy holds the view that factual information can be gained through observation without the need for the researcher to interfere with the phenomena under investigation (Saunders et al, 2017). In this case, the role of the researcher is limited to observing the phenomenon, collecting data based on it, then assessing the data to respond to the specific research question. In this case, the researcher does not intend to influence the decision-making process of online buyers. Instead, the aim is to understand how they independently make their decisions based on various forces that they face whenever they plan to make their purchases.
Research Approach
Figure 3.1 above shows that once a research philosophy is selected, the next step is to select an appropriate approach that will be used in the study. One can use deductive, inductive, or abductive research approach. The choice of the approach should be aligned with the philosophy and capable of meeting the aim of the study (Tan, 2018). In this study, the researcher selected deductive approach as the most appropriate one in facilitating the collection and processing of the needed data. This approach involves developing theories or a theory based on the existing information, then designing a strategy meant to confirm or reject it. Deductive approach thus involves reasoning from particular to general (Kumar, 2019). The reason for selecting deductive is not only because it aligns with positivism research philosophy, but also it could use extensive literature to create the research framework, to conduct the additional studies within the framework (Saunders et al, 2017). Figure 3.2 below shows the path that a researcher takes when using this reasoning approach.
Research Choices
Once the research approach is chosen, the next step is to select an appropriate research choice. One can use qualitative research, quantitative research, or mixed research method, depending on the aim that should be achieved. In this study, mixed research choice that includes quantitative and qualitative study was considered to be the most appropriate. This method allowed the researcher to conduct both statistical and explanatory analysis of information obtained from participants. It was a comprehensive method of processing the data.
Research Strategy
As shown in the research onion above, a researcher can use different strategies to collect the needed data. In this case, the researcher used both archival research and a survey to collect data. Archival research included data obtained from secondary sources, especially books, journal articles, and reliable online sources. A survey was conducted using a questionnaire to collect primary data from the sampled respondents. A questionnaire survey was the main research strategy for the study, complemented with review for existing studies and literatures. The document made it possible to collect the opinions and perceptions from targeted participants such as UK consumers to understand their purchasing decision. This delivers the valid insights for collecting the information and data in the relevant manner to lead the study.
Research Design
The researcher was keen on selecting a research design capable of responding to the research question. A mixed method research design, that involves the use of both qualitative and quantitative methods, was considered appropriate. This method allowed the researcher to conduct a comprehensive analysis of the responses that the participants provided, while at the same time allowing them to provide a detailed explanation of their responses (Saunders et al 2017). The design enables the more bespoke and tailored data collection for the consumer perception, delivering the bespoke data analytics and discussion
Data Collection and Analysis
Primary data was collected from a sample population of 200 participants who participated in the online survey that was conducted. The research surveyed a diversified sample to give good representation of the UK consumers. Questionnaires were distributed to friends via email or Facebook invitation, and they were encouraged to send the invitations to their friends and families to maximize the snowballing impact. Then the information in the filled questionnaires were coded into Excel spreadsheet. From data analysis perspective, the researcher used Excel to conduct the analysis, including the demographic analysis, alongside with descriptive statistics, correlation and regression analyses. The analysis also involved some qualitative aspects to provide further explanation to statistical findings that were made.
Research Ethics
When conducting this study, one of the major factors that was taken into consideration was the need to uphold ethics in every stage of the project. Bryman (2014) explains that research ethics play a major role in ensuring that the information presented can be trusted and relied on when developing policies that may have real-life consequences. One of the major ethical consideration that was observed was the need to protect the identity of the participants. As Napitupulu (2019) observed, in the current society where intolerance to divergent opinion is becoming increasingly common, it is always necessary to protect the identity of participants to ensure that they are not discriminated against by their colleagues or punished by their superiors based on their responses.
As a strategy of protecting their identity, the researcher assigned participants codes instead of using their actual names. They were informed about the aim of the study and the role that they were expected to play. The researcher informed them that they had the liberty of quitting from participating from the study whenever they felt it was an unavoidable eventuality. The school has strict policies that prohibit all forms of plagiarism. As such, the researcher ensured that the entire report was written from scratch, and that any information obtained from secondary sources were properly referenced using American Psychological Association (APA) 7th edition referencing style.
Results
The previous chapter has explained how data was collected from a sample of 200 individuals who participated in an online survey because of the current COVID-19 management policies that limit unnecessary physical interactions. As explained, quantitative analysis was conducted using Excel spreadsheet to answer the research questions above. Some of the questions required qualitative analysis to provide a detailed explanation of the issue under investigation. The following are the research questions that were answered through the analysis of primary data.
What are the key influencing factors for UK consumer’s online grocery shopping?
This question was based on the primary aim of this study, which focused on determining key influencing factors and their impact on UK consumers’ selection for online grocery retailer. Each respondent was told to identify factors that they believed has the greatest influence on consumer’s selection of their preferred grocery store. As shown in the figure below, convenience was the most important factors, with 55 respondents identifying it as an influential factor. These respondents stated that they are moving to the online stores because of the issue of convenience whenever they want to purchase an item. Diversity of the products available at the retail store was another issue, with 38 respondents emphasizing its importance. Most of them stated that they prefer purchasing all their grocery items from a single store, instead of having to shop from different stores. Trust was another issue that emerged in their responses.
Another major factor, identified by 25 respondents, was trust. These participants explained that they want to make sure that their retailer can deliver on its promise. Security was also a major concern to 21 participants. They need an assurance that no one will have the ability to access their bank accounts without authorization when they use their cards to pay for online goods. Other major issues that were identified include price, brand of the company, quality of products offered, and the feedback. It is important to note that quality and price, which are often critical in consumer decision-making processes, were given less significance in this case because most of these retailers often stock products manufactured by other companies. As such, consumers focus on brands when they are interested in getting specific quality of products. Figure 3.1 below shows the outcome of the statistical analysis of the findings made.
How do these factors influence the decision makings process of consumers?
Each of the factors identified above have varying influence on the selection of online grocery retailer among UK consumers. Trust as a factor was defined as the ability of a retailer to deliver to its customers the exact product that they order. The fact that customers cannot physically view and assess these products means that they have to rely on trust. Security was another major factor as explained in the section above. Convenience, which emerged as the most important factor for online shoppers, has gained massive relevance during this period of COVID-19 pandemic. As movements of people become limited, many currently rely on online grocery retailers to purchase items they need. Tight work schedule also leaves many people with little time to visit brick-and-mortar stores, forcing them to rely on online stores.
Customers prefer online retailers that offer a wide variety of products so that they can choose the best quality at the most competitive prices. Brand of the retailer is another major influence. Brands such as Amazon.com and eBay have developed trust among consumers, hence they are easily selected when one is planning to buy a product from these online platforms. Price and quality should not be ignored, just like it is always the case in physical stores. Customers will choose a retailer that offers the best quality at the most competitive price. Feedback that a firm gives its customers whenever they want to purchase an item or after making their purchases helps in creating a lasting bond between the firm and its customers.
Do you believe that the current COVID-19 pandemic will have a lasting impact on online grocery retailing in the UK?
During this period of COVID-19 pandemic, there was a sudden surge in the number of people relying on online grocery retailers to purchase food items because of the movement restrictions and the fear of contracting the virus. The researcher was interested in determining if the pandemic will have a lasting impact on grocery retailing in the United Kingdom. When the question was posted to the respondents, 78 of them (39%) stated that they agree with the statement that there will be a lasting impact on this industry. Another (27%) strongly agrees with the statement. It means that a majority of the participants (66%) believe that the current COVID-19 pandemic will have a lasting impact on UK’s online grocery retailing. Another 19% of the respondents stated that they are not sure about the lasting impact of the pandemic on online retailing in the country. 15% of these respondents had a contrary opinion, holding that the pandemic may not have a lasting impact on the industry. Figure 3.2 below shows the outcome of the statistical analysis of the primary data.
Do you believe that the current players in the online grocery retailing understands expectations and needs of their customers?
The current players in the online grocery retailing industry has a major responsibility of meeting expectations and needs of their customers. The researcher was interested in determining the view of these respondents about how well these retailers understand and meet their expectations. Figure 3.3 below shows the outcome of the analysis of their responses. It is evident that 39% of the respondents believe that these retailers understand and are capable of meeting their expectations. Another 11.5% strongly agrees with this statement. It means that a slight majority (50.5%) of the participants believe that these players understand and are capable of meeting their expectations. 28.5% of the respondents were not sure whether these players have understood their needs and expectations. 21% of these participants noted that they disagree with the statement, holding that these online retailers are yet to understand their expectations. The outcome of this analysis shows that although these players have done a lot to understand and address needs of their customers, there is still a room for improvement.
Discussion
The result obtained from the analysis of primary data indicates that online grocery retailing is gaining rapid popularity in the United Kingdom. Many people find it a more convenient way of purchasing food items as opposed to visiting brick-and-mortar stores because of the limited time they have after work. The COVID-19 pandemic propelled this growth as many people relied on these platforms to purchase their grocery at a time when the government restricted movement and interaction of people as a way of battling the pandemic (Berg & Henriksson, 2020). The analysis revealed a number of factors that significantly influence consumers’ selection for online grocery retailer in the United Kingdom. Convenience emerged as one of the major influencing factors. Most of these customers choose these platforms as the easiest way of purchasing their grocery without having to leave their homes or offices.
Whenever a customer makes the decision to purchase an item from an online platform, diversity and availability of products needed is a critical factor. They will remain loyal to a retailer that always has items they need and can offer a wide variety in terms of price and quality. Respondents identified security as a major issue that cannot be ignored by these retailers. Customers need an assurance that whenever they make online payments for these products, they will not be exposed to fraudsters who may want to steal from them (Walker & Lee, 2020). The data also shows that customers prefer websites that they can trust to deliver the desired quality of products. Pricing was a sensitive issue, especially during this period of COVID-19 pandemic where many people have lost their jobs. Many customers prefer purchasing their products from websites that offer lower prices without compromising on quality. The ability of a retailer to provide a feedback to customers before or affect they have made a purchase was also another crucial determinant when selecting an online grocery retailer.
Understanding these key influencing factors and their impact on consumers’ selection for an online grocery retailer is crucial. Most of these firms offer similar products that cannot be easily differentiated, just as it is always the case in traditional retailing. They need to understand ways in which they can be different in a market where competition is getting increasingly stiff. Amazon.com and eBay are currently the dominant players in this industry (Pitts et al., 2020). However, the industry has attracted numerous other players, including firms that are still operating under the brick-and-mortar model such as Tesco, Sainsbury’s, and Asda. As competition becomes stiff, each of these firms need to understand how customers select their preferred online retailer. Understanding how each of the above factors influence consumer’s decision-making process makes it easy to develop marketing strategies. It becomes easy to determine how to influence their decision so that they can select a given firm.
Conclusions, Recommendations, and Limitations
The emergence of online stores has revolutionized grocery retailing in the United Kingdom. When the concept emerged, it was not easy convincing leading retailers that customers would opt for online shopping instead of making traditional shopping of physically visiting the retail outlets, which was very popular at that time. However, it emerged that online grocery shopping was a more convenient way for the majority of those who have to report to work most of the days of the week. When COVID-19 pandemic broke, the United Kingdom’s government was forced to introduce and enforce lockdown laws as a way of managing the spread of the virus.
During this period, there was a massive growth of the industry, and as the study shows, the impact may last long after the virus has been managed. As such, it is important for players in the industry to understand key influencing factors and their impact on the UK’s consumers’ selection for online grocery retailer. The study identified trust, security, price, quality, convenience, diversity, and availability of product, branding, marketing, feedback as some of the fundamental factors that influence the selection of the online grocery retailer. The paper has discussed how each of these factors affect the decision-making process of customers whenever they intend to purchase an item from these online platforms.
Recommendations
Online grocery retailing is growing rapidly and many players have realized that it has a huge potential for growth, making it one of the most competitive sectors of the country’s economy. The ability of a firm to attract and retain its customers depend on a number of factors, as discussed above. The following recommendations can help players in this industry to maintain a competitive edge over their rivals in the market. A firm in this industry should:
- Consider assuring customers about the security of their credit cards whenever they make their purchases. Issues about cyber-attacks should be addressed in the best way possible;
- Address the issue of trust and convenience by delivering the right products to their customers at the stated location and at the expected time.
- Ensure that there is diversity in their product delivery to enable customers purchase all the food items they need from one retailer instead of having to visit several websites;
- Invest in strengthening their brand in the market by embracing effective marketing strategies both in the traditional mass media and social media platforms.
- Set competitive prices for their products without compromising on the quality that they offer to their customers.
Limitations
When conducting this study, the researcher encountered some limitations which are worth discussing at this stage of the report. One of the biggest limitation that the researcher encountered was the inability to physically interact with the participants. It would have been more desirable to collect primary data through face-to-face interviews to get more insight on this issue. However, that was not possible because of the COVID-19 pandemic. It meant that the researcher had to rely on data collected through the online survey. It was also challenging reaching out to specific individuals to participate in the study. The researcher relied on referrals from friends to reach out to 200 participants, although the initial target was 250 people. The movement and physical interaction restrictions put in place by the government also meant that the researcher could not visit the local library. Despite the existence of these challenges, the researcher was able to collect reliable primary and secondary data that responded effectively to all the research questions. They did not compromise the validity and reliability of this research.
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