Article

Factors Affecting IMIB Journal of Innovation and

Management
Customer Satisfaction in 2(1) 63­–81, 2024
© The Author(s) 2023
Online Grocery Shopping: DOI: 10.1177/ijim.231206620
https://doi.org/10.1177/ijim.231206620
jim.imibh.edu.in
An Empirical Analysis

Siddharth Singh Tomar1

Abstract
In today’s era, internet has become one of the most popular platforms to shop
online including grocery products. Online grocery shopping (OGS) has been
considered relatively new but a promising sector of e-commerce in India. Several
scholars have investigated the factors affecting the customer intention to buy
grocery products online in different research contexts, however, there is no
consensus in the literature on determinants of OGS. This article aims to explore
the factors, such as convenience, trust, website design and security, that influence
customer satisfaction in OGS. A survey was developed, and collected responses
were analysed using confirmatory factor analysis and multiple regression analysis.
The findings suggest that one of the major determinants of customer satisfaction
while buying groceries online is website user-friendliness and the information
provided about the grocery items. Furthermore, convenience and payment
security also have a very significant positive impact on customer satisfaction.

Keywords
Online grocery shopping, emerging economies, empirical research

Introduction
Grocery shopping is considered routine buying behaviour not only because
decisions are made at regular intervals but also because a customer’s behaviour is
essentially habitual and automatic. With the rapid growth of the internet and
e-commerce, Indian consumers’ grocery buying pattern is transitioning from

1IMIBhubaneswar, Odisha, India

Corresponding author:
Siddharth Singh Tomar, IMI Bhubaneswar, Bhubaneswar, Odisha 751003, India.
E-mail: [email protected]

Creative Commons Non Commercial CC BY-NC: This article is distributed under the
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distribution of the work without further permission provided the original work is attributed.
64 IMIB Journal of Innovation and Management 2(1)

traditional methods to online, resulting in the phenomenon known as—online

grocery shopping (OGS). Online grocery is the process of ordering groceries
online from the comfort of one’s own home or having them delivered to one’s
home or picking them up from a store or a pick-up location. It has grown in
popularity as a means of providing consumers with additional information and
options for comparing items, costs, ease and the capacity to search for anything on
the internet.
OGS is a novel way to acquire your family’s preferred supermarket items. The
phenomenon has already gained traction in developed countries, and an increasing
number of urban and suburban consumers are taking advantage of it for their
benefit and convenience. India’s markets have begun to respond positively to this
occurrence as well. Even though online grocery business in India is a niche market
inside the larger food and grocery market, due to the increase in the e-commerce
business, increasing urbanisation, changing consumer lifestyles and tech-savvy
young population who loves to shop products online, OGS is quickly gaining
popularity in the country. Online grocery stores are rapidly displacing physical
stores across India, thanks to remarkable growth in the e-commerce business,
increased customer awareness, rising disposable income and the introduction of
different technological advancements.
The online grocery market has benefited both retailers and customers.
Consumers benefit from location, timing and product. Retailers, on the other
hand, benefit from constant connectivity with their customers. OGS reduces both
physical and mental effort for shoppers, and it is gaining popularity in India as a
result of an increasing trend among consumers to shop online.
In recent years, widespread adoption of digital transactions has substantially
impacted Indians’ purchasing habits, particularly, in metropolitan areas, where
269 million (60%) of the population use internet1. Because of the availability
and affordability of smartphones, mobile is the primary device for accessing the
internet for 77% of urban users and 92% of semi-urban users, according to the
same report. As a result, internet retailing offers customers more shopping
options and access to products and services than ever before. While the online
grocery sector in India is still in its early stages, it is expected to exceed US$
3.19 billion in sales by 2020, representing a 76% increase over the previous
year.2
While the statistics show an improvement in internet sales, assessing actual
customer behaviour is more difficult. The distinctions between online and
offline channels are becoming increasingly blurred3. Furthermore, some
customers are still hesitant to purchase groceries from internet retailers for
many reasons such as lack of trust in online shopping, payment security issues,
etc. Sometimes customers also want to go out to meet up with friends/neighbours
and take their feedback before buying the grocery products. These factors have
a negative impact on the customer’s intention to move online to buy grocery
items. In addition to this, purchase habits are shifting dramatically as buyers can
move effortlessly between offline and online channels. As a result of the
internet’s substantial influence on consumer preferences and purchasing
Tomar 65

patterns, consumer behaviour related to online shopping is a topic of interest for

both academics and practitioners.

Growth of the Online Grocery Shopping (OGS) Sector

Online grocery sales are expected to expand by 54% to $95.82 billion by 2025
accounting for 12% of all online purchases. According to Singh and Söderlund
(2020), from 2021 to 2028, the Indian online grocery market is anticipated to expand
at a rate of 37.1% CAGR. The business has achieved significant popularity in recent
years due to the change in consumer habits, rapid growth and access to the internet;
making it easier for everyone to shop online. During the coronavirus pandemic, the
government enacted many rules and regulations to try to combat and manage the
virus spread. The most important rule was to stay at home as much as possible and
maintain 1.5 meters distance from other people. The laws imposed by the Indian
government had a significant impact on individuals as well as businesses. On 24
March 2020, Government of India ordered a nationwide lockdown and like other
sectors, hospitality industry was compelled to shut down. Grocery stores cannot be
closed since they provide a vital source of food and other necessities for society,
however, they must adhere to regulatory standards regarding the coronavirus.
Following the spike in COVID-19 cases, there was a surge in demand for online
grocery delivery. Consumers were turning to OGS because of the social distancing
standards, which are not only convenient but also cost-effective.
However, after certain months, despite the relaxation in social distancing, OGS
continued to increase, topping $100 billion in spending for the first time in 2021,
a year ahead of previous predictions. Customers’ reliance on the internet platform
has grown dramatically as a result of safety concerns surrounding the coronavirus
and the fact that a large section of the population works from home. The market is
likely to grow significantly in the next few years because of initiatives like
no-contact delivery and online payment, consumers have been drawn to several
online platforms, including Amazon, Big-Basket, Blinkit and others. A brief
description of major Indian online grocery retailers is given in Table 1.
The grocery market in India is a speciality market influenced by the wider food
and grocery market and is a relatively new setting in India. During the pandemic,
online grocery buying has gotten more popularity. In the year 2021, In terms of
consumer use of online grocery purchasing methods, India was one of the leading
countries.3 Therefore, the goal of this research is to examine what influences
Indian consumers’ satisfaction when they use internet for grocery shopping as
customer satisfaction is a fundamental building block of repurchase intention.
This study will empirically examine the relationship between different factors,
that is, convenience, trust, website design and security that influence customer
satisfaction in OGS. To test the proposed hypotheses, the study has collected data
from 118 individuals who have experience with OGS. The data analysis is done in
the following two stages: In the first stage, confirmatory factor analysis (CFA) is
used to verify the reliability and validity of the measurement items. In the second
stage, multiple regression analysis is used to test the proposed hypothesis. The
66 IMIB Journal of Innovation and Management 2(1)

key contribution of this paper lies in the amalgamation of four dimensions, that is,
convenience, trust, website design and security, in the online grocery context for
Indian consumers.
The rest of the study is as follows: in the second section, we have reviewed the
existing literature and proposed the relevant hypotheses. The details of the
research methodology used is described in the third section. The fourth section
summarises the findings of data analysis and the fifth section concludes the
discussion and implication of the study. Lastly, limitations and future research
directions are provided.

Table 1. Major Online Grocery Companies in India.

Major Online Grocery Companies in India
Jio-Mart Jio-Mart, a joint venture between Reliance
Retail and Jio Platforms, is India’s newest
online grocery delivery service. Grocer-
ies and daily necessities are delivered to
customers’ doors from nearby stores via
e-commerce websites and mobile apps.
Big Basket Big Basket is a popular online grocery
store, which sells over 1,000 brands and
has over 20,000 items in its database. Big
Basket has everything customers need,
including fresh fruits and veggies, spices,
dals and rice, seasoning, packaged goods,
personal care products, beverages, meats
and more, and a wide range of products
in each category. The website provides
an anticipated delivery time focusing on
cutting-edge, creative retailing at a com-
petitive cost.
Blinkit ‘Blinkit, formerly known as gofers’. It’s an
Indian-based instant delivery service that
was created in December 2013. Custom-
ers can use a smartphone app to order
groceries and other supplies online.
Nature’s Basket Godrej Nature’s Basket, a well-known
online food retailer, which offers fresh
veggies, fruits, and groceries online and
through a mobile app, has been bought by
Spencer’s Retail.
Amazon Pantry Amazon Pantry is a service that allows
customers to shop for groceries online
and have them delivered to their door in
one delivery like other items.
Tomar 67

Literature Review
OGS is a process of making a purchase on the internet that allows consumers to
buy commodities and household items, particularly perishables, from the comfort
of their own homes. To shop for groceries on the internet, most people use
e-commerce websites or smartphone apps. Customers can order goods from
businesses’ websites by just clicking on the button for the items they want to buy,
and groceries are delivered to their houses (Burke, 2005; Kurnia & Chien, 2003;
Peterson, 1997).
Grocery shopping online is not as common as buying durable items; as a result,
the factors that influence customer satisfaction may differ in this product category
(Van Droogenbroeck & Van Hove, 2017). Scholars believe that buying groceries
on the internet is motivated by trust, convenience and security (Morganosky &
Cude, 2000; Seitz et al., 2017), and consumers place a higher value on the delivery
process and product quality when compared to shopping for durable items
(Anesbury et al., 2016; Frank & Peschel, 2020). Scholars have used the theory of
reasoned action (TRA) to study various contexts of e-commerce, such as apparel
shopping (Yoh et al., 2003), eco-friendly products (Prakash & Pathak, 2017),
green products (Paul et al., 2016) and OGS (Belleau et al., 2007; Cai & Cude,
2012; Hansen, 2008; Orzan et al., 2013; Rigas & Riaz, 2015; Rodriguez et al.,
2017; Yoh et al., 2003).
TRA model proposed by Fishbein and Ajzen (1977) is a generic framework
that proposes the relationship between attitude, behavioural intention and actual
behaviour of the individuals. Understanding the individual intention is very
important specifically in the case where consumers can exercise their control over
their behaviour as in the case of buying groceries on the internet (Amaro &
Duarte, 2015). Another theoretical framework, TAM (Technology Acceptance
Model) has been used by many scholars to explain customer satisfaction or
repurchase intentions. In literature, some scholars have used traditional TAM
(Bauerová & Klepek, 2017; Hui & Wan, 2009), whereas the most commonly used
is extended TAM, which includes the relevant variables with reference to the OGS
context, such as security (e.g., Kurnia & Chien, 2003; Wang & Somogyi, 2018),
trust (e.g., Childers et al., 2001) and website design (Loketkrawee & Bhatiasevi,
2018; Nguyen et al., 2019) are some of the factors added in extended models to
improve the model’s explanatory power (Loketkrawee & Bhatiasevi, 2018;
Sreeram et al., 2017).
Beyond adoption models, scholars argue that a shopper’s beliefs, attitudes and
behaviours towards a multichannel retailer’s online channel are shaped by his or
her perception of the offline channel. Jones and Kim (2010) discovered that a
customer’s inclination to shop for groceries online is influenced by their offline
purchases. According to Frasquet et al. (2017), customer loyalty to multichannel
retailers is heavily influenced by the consumer’s offline retail store loyalty. All of
these studies are centred in the context of online apparel shopping. Nonetheless,
these studies demonstrate learnings how grocery multichannel retailers’ brand
equity affects consumer intention to shop through their online retail stores. Using
the TAM model, Khare and Sadachar (2014) described the people’s intentions and
68 IMIB Journal of Innovation and Management 2(1)

actual behaviour when it comes to a specific technology. Consumer satisfaction

with online grocery buying is positively influenced by convenience and trust in
online shopping (Hansen, 2006). Childers et al. (2001) found that online grocery
website design and trust are major predictors of OGS usage. According to Park et
al. (1996), high-tech baby boomers use home shopping services to simplify their
life, and OGS provides one method to boost convenience. Morganosky and Cude
(2000) and Raijas and Tuunainen (2001) indicated convenience and time savings
as the key reasons for OGS. Furthermore, customer satisfaction with OGS is
positively influenced by security (Çelik & Yilmaz, 2011). As a result, the objective
of this study is to develop a research model that incorporates new constructs into
the TAM theory: trust, convenience, website design and security.

Convenience
Convenience is defined as a reduction in stress or sacrifice caused by a transaction
due to a reduction in time and effort (Jiang et al., 2013). Customers’ perceptions
of a website’s user-friendliness, intuitiveness and simplicity during a purchase are
referred to as online convenience. This reduces tiredness caused during the
product and information search process, reduces error and boosts satisfaction,
which leads to repeat purchase intention (Srinivasan et al., 2002; Van
Droogenbroeck & Van Hove, 2014). Convenience is important in shaping
customer behaviour, and their perceptions of convenience are important in
deriving satisfaction (Seiders et al., 2005). Customers’ perceptions of saving time
and improved convenience are closely linked to their use of the internet for
grocery shopping at any time of the day and from anywhere (Jiang et al., 2013;
Morganosky & Cude, 2000; Van Droogenbroeck & Van Hove, 2014). Ramus and
Nielsen (2005) looked at several factors that influence consumers’ decision to
purchase groceries online and found convenience to be one of the most influential
factors. Therefore, we hypothesise that,
H1: Convenience has a significant positive impact on customer satisfaction in
OGS.

Trust
Trust is found on a set of assumptions that ‘individuals behave in a socially
acceptable manner toward others’ (Constantinides et al., 2010). D’Alessandro et
al. (2012) define trust as ‘confidence’ shown to another party and suggest that
while making critical purchasing decisions, trust is a necessity of social behaviour.
In electronic commerce, trust gives customer’s the confidence and comfort to
disclose personal information, follow online vendor recommendations, and make
transactions over the internet (Kim et al., 2011). According to the current literature
on e-commerce, first-time customers’ trust development may be lower than that of
recurring customers (Eastlick & Lotz, 2011). Online sellers must demonstrate
their honesty, competency and friendliness to clients when serving or connecting
Tomar 69

with them to gain their trust (McCole et al., 2010). Grabner-Kräuter and Kaluscha
(2008) also suggest that establishing trust with new internet customers is critical
for long-term success, and this initial trust should be prioritised. Çelik and Yilmaz
(2011) also found that customer satisfaction in OGS is influenced by the trust.
Citrin et al. (2003) suggest that in an online transaction environment, trust is even
more vital, especially when dealing with commodities like food and groceries,
and is necessary for an online grocer’s success (Toufaily et al., 2013). If trust has
been developed, it increases the customer satisfaction with the OGS process,
positively affecting the repurchase intention. Therefore, the hypothesis is proposed
as follows:
H2: Trust has a significant positive impact on customer satisfaction in OGS.

Website Design
The grocery retailer’s website design plays a significant part in building an online
relationship with consumers. It has the capacity to affect the image of the company
as well as customer satisfaction, loyalty and repurchase intention (Sanchez-
Franco & Rondan-Cataluña, 2010). The image of the company’s website becomes
more important in online shopping, the process takes place in a virtual environment
and it increases the uncertainty and risk (Mostafa et al., 2005). Websites that give
the impression of being user-friendly, and easy to search for products and
information appeal the consumers more (Kim & Niehm, 2009); therefore, website
homepage is crucial in generating that impression (Pandir & Knight, 2006). In
online shopping, customers cannot examine or feel things, thus other critical
aspects of the website including pictures, graphics, video material, etc., become
very important. Additionally, some new features such as 3D photos, zoom
functions, suggestions for similar items and substitute items in case of stock out
help in establishing and increasing consumer impressions of the website (Kim et
al., 2008). Websites that are modern, thorough, innovative, provide detailed
information about the products and appealing to the eyes increase the consumer’s
interest and help in retaining existing ones (Kim et al., 2008). In prior studies, the
website design is found to be an important component in enhancing consumer
happiness (Pandir & Knight, 2006). The customer’s perception of the online
store’s user-friendliness is used to measure the performance of the online business
(Lin, 2007):
H3: Website design has a significant positive impact on customer satisfaction
in OGS.

Security
Security in online shopping context relates to the safeguarding of payment and
financial information from unauthorised breaches (Nysveen et al., 2005). The
literature suggests that one of the most important aspects of online grocery buying
is the security (Khan & Khan, 2020; Lauer & Deng, 2007; Shukla et al., 2014).
70 IMIB Journal of Innovation and Management 2(1)

Customers’ negative sentiments are influenced by internet businesses’ incapacity

to protect their platforms from attacks or any damages, which they perceive as a
risk to financial transactions (Lauer & Deng, 2007; Teoh et al., 2013). Customer
satisfaction in online food purchasing is increased with a robust security system
on the online grocery website (Khan & Khan, 2020):
H4: Security has a significant positive impact on customer satisfaction in OGS.
Based on the proposed hypotheses, Figure 1 presents the research framework of
the study.

Research Methodology

Sample and Data Collection

This study focuses on a sample of Indian residents. This study’s sampling frame
was youth, and the convenience sampling technique was used during data
collection. This particular sampling technique is known to allow researchers easy
access to information from participants, and it is also known to be convenient.
The goal was to minimise the researcher’s bias in data collection. The survey
questionnaire was emailed to the targeted respondents who had some prior
experience with OGS. After data screening, a total of 118 usable responses were
received for analysis, representing a response rate of approximately 47%.

Survey Design and Measurement Items

To prepare the questionnaire, we followed a two-stage development approach. In
the first stage, we thoroughly reviewed the literature for well-tested measurement
scales of the proposed constructs with favourable psychometric properties relevant
to the context of study. In the second stage, we took the expert recommendation
to detect any problem in wording and/or ambiguity in the questions, and based on
their recommendations, survey questions were finalised.

Figure 1. Proposed Research Framework.

Tomar 71

Table 2. Construct Items and Relevant References.

Construct Items References Factor Loading
Convenience (CO)
CO1: It is easy to access the website Khan and Khan (2020) 0.841
of online grocery store
CO2: It is easy to search for products on the 0.832
website of online grocery store
CO3: It is easy to transact at online grocery 0.820
websites.
CO4: Buying groceries online enables 0.894
me to buy my groceries faster
Trust (T)

T1: Grocery shopping on online store Mortimer et al. (2016) 0.820

website is a trustworthy experience
T2: While shopping online I trust stores that are 0.891
connected with well-known offline stores
T3: I can rely on online store websites to keep 0.918
the promises that they make
Website design (WSD)

WSD1: The online store provides in-depth Azhar and Bashir (2018) 0.847
information regarding products
WSD2: Online store offers appropriate 0.881
personalized services
WSD3: Online store has a good selection 0.882
of products
Security (SEC)

SEC1: Payments on online store are safe and Azhar and Bashir (2018) 0.845
secure
SEC2: Online grocery store implements security 0.885
measures to protect Internet shoppers
SEC3: Online grocery store has a very safe online 0.878
paying mechanism
SEC4: The transactions are protected by the 0.862
state-of-the-art security technique at this online
store
Customer satisfaction (CS)

CS1: I am satisfied with the purchase experience Chin and Goh (2017) 0.873
from online grocery shopping websites and Pham et al. (2017)
CS2: I am satisfied with the post-purchase 0.871
experience of after-sales support from online
store website
CS3: I am satisfied with the post-purchase 0.920
experience of delivery care
CS4: Overall, I am satisfied with online grocery 0.861
shopping experience
72 IMIB Journal of Innovation and Management 2(1)

The survey was prepared in two sections. The first section includes the
questions on demographic such as age, gender, etc. The second section of the
survey included the question on the main constructs. All the latent constructs were
measured using a seven-point Likert scale ranging from (1) strongly disagree to
(7) strongly agree. The final list of measurement items is presented in Table 2 and
has been adapted from the respective original studies.

Sample Demographics
The characteristics of the survey respondents are outlined in Table 3. They are
primarily located in metropolitan or semi-urban areas, have a majority of
bachelor’s or higher degree holders (68.00%), and are between the ages of 18 and
34 (82.2%). In this poll, there is a roughly equal proportion of male (54.2%) and
female (45.8%) participants by gender. Regarding annual family income, 51.7%
of respondents reported having an income above 5 LPA, 33.1% reported having
an income between 3 and 5 LPA and 15.3% reported having an income below 3
LPA. A total of 47.5% of respondents are from urban areas, 45% are from semi-
urban areas, and the remaining 7.5% are from rural areas. In total, 51.7% of
respondents are between the ages of 18 and 24, 30.5% are between the ages of 25
and 34, 11% are between the ages of 35 and 44, and the remaining 6.8% are over
the age of 45. In addition, 47% of respondents were students, 24.6% of respondents
worked for a private employee, 17.3% of respondents worked for the government
and 11.1% of respondents were self-employed.

Common Method Bias

Common method bias pertains to the shared variance among the measured
constructs that takes place when all the responses (independent and dependent
variables) are collected using same method (Jordan & Troth, 2020; Podsakoff
et al., 2012). The presence of common method bias results in artificial modification
of the relationships between the constructs. In this study, to test if the data collected
is not suffering from common method bias, we followed Podsakoff et al. (2012)
approach of the ‘single factor procedure’. In ‘single factor procedure’, model fit
is evaluated in which all the measurement items are loaded onto one factor. The
reasoning is that if the CFA model shows a good fit with the data, common method
bias is largely responsible for the covariation among the constructs. The model fit
for the single factor model (CMIN/DF = 4.923, GFI = 0.640, comparative fit
index [CFI] = .707, RMSEA = 0.158) is very poor. It suggests that common
method bias is not a serious concern in this study.

Results and Analysis

To test the proposed hypotheses, the theoretical model (Figure 1) was tested using
regression analysis. In the first stage, to test the reliability and validity of measurement
items, we performed CFA using SPSS-AMOS 23 software. After the validity and
reliability check, multiple regression analysis was performed using SPSS-23 software.
Tomar 73

Table 3. Respondents’ Demographic Profile.

Frequency (n = 118) Percentage
Gender
Male 64 54.2
Female 54 45.8
Age
18–24 61 51.7
25–34 36 30.5
35–44 13 11.0
45 and above 08 6.8
Annual family income
1–3 LPA 18 15.3
3–5 LPA 39 33.0
Above 5 LPA 61 51.7
Location
Urban 56 47.5
Semi-urban 53 45.0
Rural 09 7.5
Occupation
Student 55 47.0
Govt. employee 21 17.3
Private employee 29 24.6
Self-employed 13 11.1
Qualification
Intermediate or lower 03 2.5
Bachelor’s degree 50 42.4
Master’s degree 49 41.5
Ph.D. 16 13.6

Validity and Reliability of Measurement Items

A measurement model was tested to ensure the psychometric properties of the
items used (Figure 2). The measurement model in CFA showed an adequate fit
with the data (see Table 4). Based on the recommendation proposed by Hair et al.
(2018), the CMIN/df value is less than 3, and most of the cut-off criteria of the
model fit indices were also met. To test the validity of the measurement items, we
checked for the standardised factor loadings of the items, which are significant
(p < .001) and more than 0.50 (Hair et al., 2018) (see Table 2). Also, no major
cross-loading arose, supporting the unidimensionality of the latent variables. The
reliability of latent constructs was assessed using Cronbach alpha values. As
suggested in the literature, the values were more than the cut-off criteria of 0.70
74 IMIB Journal of Innovation and Management 2(1)

Table 4. Model Fit Indices.

Model Goodness Final Measurement
of Fit Indices Cut-Off Values Model References
χ2/df <3 2.088
RMSEA <0.08 0.051
GFI >0.90 0.941
Hair et al. (2018)
AGFI >0.80 0.915
NFI >0.90 0.920
CFI >0.90 0.956

Table 5. Factor Correlation Matrix, Cronbach Alpha (α), Composite Reliability (CR)
and Average Variance Explained (AVE).
Construct Cronbach α CR AVE CO T WSD SEC CS
CO 0.903 0.910 0.718 0.847
T 0.904 0.909 0.770 0.836 0.877
WSD 0.903 0.903 0.757 0.802 0.763 0.870
SEC 0.924 0.924 0.753 0.755 0.715 0.842 0.868
CS 0.931 0.933 0.777 0.784 0.743 0.838 0. 818 0.882
Note: Diagonal values (bold) show the square root of the AVE.

(see Table 5). Based on the procedure recommended by Fornell and Larcker
(1981), we also assessed the composite reliability values of the constructs, which
are higher than the minimum cut-off level of 0.70.
The values of average variance explained (AVE) were also more than their cut-off
levels of 0.5 (Hair et al., 2006). Lastly, following the approach proposed by Fornell and
Larcker (1981), we tested for the discriminant validity of the latent constructs. The
authors suggest that the correlation of the constructs should have lower values than the
square root of the construct’s AVE values, which is the case in this study (see Table 5).
As a whole, the CFA results suggest that the measurement items are reliable and valid.

Multiple Regression Analysis

After measuring the research model’s fitness against various parameters, hypothesis
testing was done using multiple linear regression analysis. The regression model shown
in Table 6 contributed significantly and predicted 81.8% of variance (adjusted R2) in
customer satisfaction by security, website design, trust and convenience in OGS.
Table 7 shows the coefficient summary for the proposed regression model,
which shows that security (= 0.306, p = .001), convenience (= 0.161, p = .045) and
website design (= 0.418, p = .001) are significant predictors of online grocery
behaviour. It shows that convenience, security and website design have an effect
on the dependent variable, that is, customer satisfaction when shopping for
groceries online. However, the findings indicate that trust has no significant
impact on customer satisfaction. With the highest coefficient beta, 0.418, website
Tomar 75

Figure 2. Confirmatory Factor Analysis of the Measurement Model.

Table 6. Model Summary for R Square.

Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.908a 0.824 0.818 0.60123
Note: Predictors: (Constant), convenience, security, trust, website design.

Table 7. Coefficient Summary.

Model Standardised Coefficients Beta Sig Status
Security 0.306 0.001 Accepted
Website design 0.418 0.000 Accepted
Trust 0.073 0.404 Rejected
Convenience 0.161 0.045 Accepted
Note: Dependent variable: Customer satisfaction.

design is identified as the most important factor influencing customer satisfaction

on OGS.

Conclusion and Implication

OGS is a brand-new way to get your favourite supermarket items for home
consumption. Many online grocery companies have made successful and
sustainable online grocery retailing a top priority in today’s highly competitive
business environment, even though shopping online for groceries differs
76 IMIB Journal of Innovation and Management 2(1)

significantly from general online shopping due to its perishable nature and product
variety. As this channel continues to grow rapidly in the next years, the perceived
benefits of OGS give businesses a competitive advantage in various ways. Thus,
for both multichannel and pure-play food e-retailers, OGS remains both an
opportunity and a big administrative problem. The goal of this study is to
understand the customer’s perspective on the decisive aspects of OGS.
The main objective of this study is to examine the key factors affecting
customer satisfaction in OGS in the Indian context. In OGS, many factors affect
customer satisfaction. The study has included several independent constructs, for
example, convenience, trust, website design and security to examine the impact
on customer satisfaction. The main findings of this study are consistent with past
research and further extend it. This study has confirmed that convenience, website
design and security are positively associated with customer satisfaction.
The findings indicate that convenience is related to customer satisfaction in
OGS, which suggest that customers like to buy their groceries without any hassles,
and easiness in searching for the grocery items, and ability to buy at any time of the
day from anywhere improves their satisfaction. The finding is consistent with
previous results (Aylott & Mitchell, 1998; Bauerová & Klepek, 2018). Furthermore,
website design and security positively influence customer satisfaction. It suggests
that customer satisfaction is highly affected by the online grocery’s website design
and the level of relevant and detailed information provided about the groceries.
Studies also suggest that shoppers are more willing to buy groceries online if they
find the payment transaction to be properly secured. Previous studies have also
indicated similar results (Pechtl, 2003; Prabowo & Hindarwati, 2020). Online
grocery retailers need to make sure that customers feel secure while purchasing
from their website. When customers feel that a grocery website has used a state-of-
art security system and their financial information will not be shared with others,
they are more satisfied with the grocery shopping process.
Trust, on the other hand, is not significantly affecting customer satisfaction.
This particular finding is not in line with the previous studies (Inman & Nikolova,
2017). The reason for this might be that our sample responses mostly belong to
younger age and given the usage of the internet in the current era, they have
access to sufficient information about brand, product quality, delivery process,
etc., and have become quite comfortable in online shopping.
With the increased use of e-commerce adoption by SMEs, many grocery
retailers have entered the market. Due to increased competition in the market,
online grocery retailers need to find out new ways to increase customer satisfaction.
The findings provide many strategies for online grocery retailers to improve their
customer satisfaction in the OGS process. Online retailers also need to make sure
that the customer data is safe and not leaked or shared with others in any possible
way. Customer data and financial information safe are very important in online
shopping as here everything is driven by technology. Further, convenience is
another important factor in driving customer satisfaction. Retailers need to ensure
that the company’s website is easy to access and search for the products. The
whole process of searching and buying groceries is quick and easy as customers
are concerned about the time, they spend to shop products. Several payment
Tomar 77

options should be given to the customers and transaction failure have a negative
impact on customer satisfaction.

Theoretical and Managerial Implications

Our study confirms that TAM can still be used to describe online food buying.
One important factor in developing a favourable opinion of OGS is website
design. Our study approach is distinctive because it combines theoretical
frameworks and illustrates a fresh perspective on how consumer satisfaction is
developed—a perspective that was overlooked in earlier studies. The assumptions
of the existing theories are extended by this method since it has been effective in
enhancing our understanding of the factors that influence the intention to shop for
groceries online. Our research confirms that convenience is related to customer
satisfaction in OGS, implying that customers prefer to buy their groceries without
any hassles, and that the ease of searching for grocery items, as well as the ability
to buy at any time of day from anywhere, improves their satisfaction. Website
design also has a positive influence on customer satisfaction. It implies that the
design of the online grocery’s website and the amount of relevant and detailed
information provided about the groceries have a significant impact on customer
satisfaction. These findings contribute to the existing literature by helping to
understand the impact of customer satisfaction on OGS.
This study also contributes to the generation of managerial advice, as online
grocery retailers must focus on developing a user-friendly website that provides
consumers with an efficient and easy way to shop for groceries because shoppers
need to experience a hassle-free process while searching for the products and
product-related information on the website. They also need to ensure that the
company’s websites provide appropriate products and service suggestions to the
shoppers and have a good range of products to offer to the customers. To
summarise, if online grocery retailers want to increase the number of customers
who shop online, they must first improve their attitude towards OGS by creating
online solutions that are, above all else, useful and then develop customer loyalty
by raising awareness and the calibre of the products and services offered.

Limitations and Future Research Directions

One of the limitations of this study is that it has considered only four factors that
have an impact on customer satisfaction in the OGS process. There can always be
other factors, for instance, individuals’ characteristics, that can influence consumer
satisfaction while shopping for groceries on the internet. Future studies can take
other elements into the consideration and find the exact relationship of drivers of
customer satisfaction in OGS. Apart from this, there is the possibility of the
presence of some mediator or moderator variables, which might change the casual
relationship among these factors. Understanding the customer needs will help the
retailers to position their services and find an edge over competitors in this rapid
growth of the online grocery industry.
78 IMIB Journal of Innovation and Management 2(1)

Declaration of Conflicting Interests

The author declared no potential conflicts of interest with respect to the research, authorship
and/or publication of this article.

Funding
The author received no financial support for the research, authorship and/or publication of
this article.

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