Sunday, July 14, 2013

Why Consumers Buy Groceries Online

           In my last post, I explored how grocery stores plan to store perishables until they reach your home. I decided I needed more information on why consumers would want to buy their groceries online. This led me to an article titled “More Consumers Buying Groceries Online” published on the web in Consumer Affairs. The author, Truman Lewis, a well known politically active reporter, found that online grocery appears to be catching on. He claims that the number one reason for grocery shopping online is convenience. Along with convenience, Lewis notes that “online shoppers say they’re also trying to save money, both by limiting purchases and more easily finding the best price for a given item.” The author goes on to say that “A new survey, commissioned by CouponCabin (a website that offers discounts for over 2,500 participating retailers), found that 15% of U.S. adults have bought groceries online and another 19% say they plan to do so.

           This makes me wonder what other reasons consumers would want to buy their groceries online?  Also, I question what other online grocery shopping surveys are out there that may have more creditability.
 
          After reading this article by Lewis, I found an article/report titled ”U.S. Grocery Shopper Trends 2012 published by Food  Marketing Institute (FMI). This company represents 1,500 food retailers and wholesalers from around the world. FMI has been tracking grocery shopping behavior since 1974 and has produced a study, Trends, that presents a snapshot of consumer trends at the current time.  The Institute claims that “This year, perhaps more so than at any time in the past 35 years, knowledgeable consumers are looking for value, quality and convenience, and are driving the industry to become more innovative and competitive in all ways”. In the survey (below), consisting of over 1650 shoppers with an in-depth exploration to online shopping, shows consumers buy groceries online for several reasons:
 
U.S. Grocery Shopper Trands 2012 Executive Summary by FMI


             The chart shows that the top three reasons that consumers buy online is the convenience of home shopping, lower prices, and the convenience of home delivery.  After analyzing the graph, convenience is important to consumers as one of the top three reasons. They enjoy being able to shop from home and have their groceries delivered to their home.   
          Questions that arise for me when reading this report involve what age group, sex, marital/ relationship status, household size, are taking this survey?  If the survey consisted of families and if so, how many children? Are the couples working 8-10 hour days or is there a stay-at-home mom in the family? I feel these issues are important when conducting a survey regarding the reason for people to shop for groceries online becuase of the types of situation that people are involved in.
 
           This report is similar to what Lewis said in his article that the number one reason consumers buy groceries online is for convenience. I believe people choose what is most convenient to them at their stage in life when they factor in their typical day. People are choosing to eat healthier, save money, and focus on environmental impacts.  
 
          While Lewis claims that consumers are trying to save money by focusing on the need and price of an item by shopping online, Trends claims that consumers purchasing products in 2013 have an awareness of the rising food prices due to weather related issues in 2012. I tend to think people will always try to save money and the internet has increased our ways of finding the best deal and they will not care as much about the inflation in groceries that will happen this year. 
           I believe saving time plays a major part in families who have children and are therefore pulled in every direction while their kids engage in extracurricular activities and still want to have a home-cooked meal. I find that my family is tired of deciding where to go out to dinner just because there is nothing at home to make or eat.
          As I continue my research, I will look at the price comparisions on shopping for groceries online and if the consumer feels if spending a bit more a week is worth it to them.

 
References cited:
Truman, Lewis ”More Consumers Buying groceries Online” Consumer Affairs.(2013) Web.14 Jul 2013. http://www.consumeraffairs.com/news/more-consumers-buying-groceries-online-021413.html
"U.S. Grocery Shopper Trends 2012 Executive Summary" FMI. (2013) Web. 14 Jul 2013. http://www.fmi.org/home
 
 
 
 
 


1 comment:

  1. I think it is awesome that you picked such a unique topic! I feel since people order things online constantly; why not add groceries to the list. People in this day in age will probably love the convenience! In addition to that, I do understand in your last post how they have some ideas about perishable foods, but that still doesn’t sit well with me. There’s no way of knowing if all the employees handling your food will get it there on time, take proper care of it etcetera.

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