E-Food and the Online Grocery Business

Seminar paper from the year 2004 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,3, Furtwangen University, language: English, abstract: Groceries are different from many other products, such as music and books that are commonly purchased online. Many grocery products are perishable and therefore time-sensitive in terms of their delivery needs. In addition, groceries are a replacement product, for example, the same basket of products is more-or-less purchased on a regular basis. Finally, groceries are high-touch items, meaning that consumers like to inspect the quality of items they are purchasing. Online grocery shopping still is a growing and potent distribution channel that uses direct access methods to allow consumers to shop quickly and take delivery of grocery products without ever leaving their homes, with the computer as the primary method of communication. This environment provides the opportunity to compare and select grocery products in unique and relevant ways in an information-rich environment. Consumers are embracing this online channel as a means of simplifying their lives and saving time. For researchers, online grocery shopping provides new research applications made possible from the unique ability to link longitudinal transactional data and survey-based attitudinal data at the individual household level. This means fast consumer feedback from a valuable sample, in a controlled environment, as well as the ability to monitor behaviour over time. Also, this environment can be a more efficient and cost-effective means of data collection and analysis than traditional survey research, in some instances.