Title

Feasibility of online grocery in Karachi

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

Spring 2018

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Grocery trade--Management | Grocery trade--Technological innovations | Internet marketing

Executive Summary

This report is related to "Feasibility of online grocery store in Karachi" and rotates around establishing an online grocery store in Karachi. It will be B2C business model, where customer will buy grocery items online. Electronic grocery shopping offers consumers the possibility to order groceries electronically. At this moment, electronic grocery shopping is evolving at an exponential rate. The electronic shopping environment differs on a significant number of aspects from the traditional shopping environment. These typical online environment characteristics not only influence the online consumer's shopping behavior but they also offer more flexibility for online retailers to implement merchandising actions. The purchase of a grocery product is, in contrast with more durable goods, typically a low - importance and low-risk decision. So, consumers often are low involved. In order to gather data mix methodology approach was used i.e. qualitative and quantitative. For quantitative a survey was conducted and questionnaires were physically distributed to collect data from 102 participants who had shopped online grocery. For qualitative one Focus group and interviews with three industry experts were also conducted in this regard. Interviews helped us to determine the current situation of online business and requirement of IT infrastructure for opening an online grocery store. Discussions were made about the scope of online grocery store in Karachi. In the focus group discussion it was unanimously agreed that there is very good potential in Karachi for online grocery. Currently there are few online grocery stores in Karachi and this is the right time to initiate this business to grab this opportunity. For secondary data, literature from various databases was searched. Pure play and Ware-pick model will be implemented. These studies of customer perceptions provide information for grocery retailers to improve their future strategies to held them attract and maintain customers, which is very important in the competitive environment. This study is concerned with value that consumers derive from the grocery-shopping activity. Sources of customer value can arise from both self-oriented and other-oriented sources. Both sources may play significant roles in the decision of some consumers to patronize a particular store.

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