E-commerce is a broad term that specifies electronically mediated financial transactions between two parties such as individuals or organisations. The focus for this research will be on business-to-consumer e-commerce, also referred to as B2C e-commerce, which are the transactions between retail suppliers and the end-consumer. Within B2C e-commerce there are four main types of websites: brand-building website, services-oriented relationshipbuilding website, portal or media site and lastly transactional e-commerce site (Ellis- Chadwick, 2011).
Online grocery shopping is classified as transactional e-commerce site because it takes place in a commercial website and the main purpose of purchasing of online products and services (Ellis-Chadwick, 2011). The process of buying groceries online is very straightforward and follows three main steps: It starts with the consumer browsing around a range of groceries and choosing products. The next step is selecting time of delivery and the last step is payment, which can be done with regular cards such as VISA and MasterCard (Handla24.se, 2015).
E-commerce has become a very popular medium for shopping within the EU, since the consumers appreciate the convenience of shopping anytime and anywhere. The consumers state that they get better access to information online and that a broader selection of products is presented. Another benefit with purchasing groceries online according to consumers is that it is easier to compare prices or find alternatives based on other what other consumers have purchased. In 2012 Sweden was one of the leading e-commerce markets within EU. Sweden was then ranked as the third largest e-commerce market with The theoretical framework includes a literature review with relevant theories within the topics e-commerce Theory of Planned Behaviour, consumer involvement and consumer barriers. The section will be concluded by the development of hypotheses, which is based on Theory of Planned Behaviour.
77% of its population making their shopping online (Seybert, 2012). According to Svensk Digital Handel’s report “Digital Mathandel” (2014), the current e-commerce market in Sweden is steadily growing, with an increase of 17% from year 2013 to 2014.
When the main actors of the market first introduced the online grocery service in the late 1990’s, the customers was not yet ready for it and the business model was not fully developed. By lacking sufficient profit marginal to cover up the costs of logistics, packaging and time management, the market stagnated and still waits for a profitable model to break through in a larger scale. The challenge is to find a sustainable and profitable model, in which the customers slowly start to appreciate the comfort (GS1 Sweden & HUI Research, 2012).
Within the online grocery industry, there is a growth of 38% from 2013-2014. However, in comparison with the total grocery industry, the online grocery commerce represents barely 1%. In 2013 the turnover of the total grocery industry was 265 billion SEK, whereas the online grocery commerce had a turnover of 2.2 billion SEK (Svensk Digital mathandel, 2014). Furthermore, in comparison to the overall e-commerce, which is accounted for 6% (approximately 37 billion SEK) of the in Swedish total commerce. Hence, one can see a difference in market share of the two markets and the potential of the online grocery market according to the growth rate of the industry.
Online Consumer Behaviour
Online consumer behaviour differs slightly from traditional, offline consumer behaviour. According to Ba and Pavlou (2002) trust is one of the major concerns for consumers when purchasing items online. The trust issue in a buyer-selling relationship is based on information asymmetry, which is explained as a relationship where one party, usually the seller, possess more information than the buyer about the product or service quality (Ba & Pavlou, 2002). It can also be seen that technology acceptance and adoption is an important aspect regarding consumer e-commerce behaviour (Pavlou, 2003).
There are several aspects and motives to consumers’ adoption of e-commerce; according to Tauber (1972) these motives are primarily personal (self-gratification, physical activity and sensory stimulation) and social (communication with others, peer group attraction and status/authority). Personal and social needs are both related to the hedonic aspect of purchasing items, the shopping enjoyment. The market research conducted by Svensk Digital Mathandel (2014) presents an increased use of online grocery shopping and that the consumers tend to continue to purchase their groceries online after trying it.
Theory of Planned Behaviour
The Theory of Planned Behaviour aims at describing the influences and mechanisms behind actions performed deliberately and are an extension of the Theory of Reasoned Action (TRA) by Fishbein and Ajzen. The Theory of Planned Behaviour has been described as one of the most influential and popular frameworks for the study of human action (Ajzen, 2002).
As mentioned above, two assumptions provide the foundation of the Theory of Planned Behaviour. The first is the assumption that individuals are given enough resources to make a rational choice and evaluate the best behavioural alternative. The second assumption involves the importance of intention. Intention represents the decision for one chosen alternative and the will to perform just that special behaviour (Ajzen, 1991). According to he theory, the intention to perform certain behaviour is influenced by three main components
1.2 Problem Discussion
2 Theoretical Framework
2.2 Theory of Planned Behaviour
2.3 Consumer Involvement
2.4 Consumer Barriers .
2.5 Relevance of Theories
2.6 Hypothesis Development
3 Methodology & Method
3.1 Methodology .
3.2 Method 9
3.3 Data Analysis
3.6 Summary of Method
4.2 Factor Analysis
4.5 Multi Linear Regression Analysis
4.6 Hypothesis Results
List of references
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Consumer Attitudes Towards Online Grocery Shopping