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Last updated: July 3, 2019

MIDLANDS STATE UNIVERSITYFACULTY OF COMMERCEDEPARTMENT OF MARKETING MANAGEMENTThe impact of adopting online grocery shopping on company performance in the FMCG sector in Zimbabwe”: A Case Study of TM Pick n Pay and OK Supermarket.

ByZivanayi MukukuR173284QABSTRACTThe Internet has been increasingly used to facilitate online business transactions between business entities and consumers for various products and services. One of the applications that has received much attention in the last few years is Online Grocery Shopping (OGS). However, the study of Online Grocery Shopping has been limited in number. IntroductionThe Internet has been increasingly used to facilitate online business transactions, not only between different business entities, but also between business entities and consumers. One of the Internet business applications that has received much attention in the last few years is Online Grocery Shopping (OGS) (Morganosky and Cude 2000).

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Online Grocery Shopping refers to the use of retailers’ web sites by consumers to purchase grocery products by simply clicking the mouse button for the required items. These items will then be delivered to the consumers (Belsie 1998). OGS has many potential benefits to consumers, particularly in terms of convenience and time saving. In addition, the retailers will ultimately reap significant benefits as it will lead to more efficient use of personnel and simplification of building infrastructure (Kurnia and Johnston 1999; Slonae 2000). Therefore, Online Grocery Shopping has been an attractive retail channel in many regions, notably the United States, Europe and Australia (Schuster and Sporn 1998; Morgan 2000; Morganosky and Cude 2000).

This chapter begins with an overview and a background of the research on “The impact of adopting online grocery shopping in Zimbabwe”: A Case Study of TM Pick n Pay and OK Supermarket. This chapter gives a general introduction to the research project. It starts by highlighting the background of the study, statement of the research opportunity, main and specific objectives and research questions that sought to be answered by the project. The chapter goes further to highlight the research assumptions, significance of the study, delimitations of the study, and limitations that inhibited the researcher during the course of the project, theoretical framework, major definition of terms and a summary of the chapter.Background to the studyYearTotal retail (Rm)Growth rateOnline retail(Rm)Online retail growth2004 313,511 428 2005 345,466 10% 514 20%2006 398,466 15% 688 30%2007 447,788 11% 928 35%2008 500,067 12% 1,200 35%2009 524,352 5% 1,560 30%2010 561,016 7% 2,028 30%E-commerce development in South Africa has lagged that of the developed economies. Some of the reasons include the hype and massive consequent collapse of the initial dot com bubble had severely dented the confidence and perceived value that e-commerce business models could deliver.

The substantially slower growth of internet availability in developing countries and the prohibitive cost of high speed – broadband internet service. Reed et al., 2016 asserts that the cost barrier of devices and infrastructure together with the lack of convergence and collaboration. Over the past 5-8 years there have been substantial shifts in many of the barriers listed above.(World Wide Worx, Online Retail in SA 2011,118)In South Africa, a survey of online retailers showed that only 7%, predicted growth of by 40% or less in 2011, whilst 77% believed that their growth would be between 41-60% (World Wide Worx, Online Retail in SA 2011/2012). This is a critical indicator of confidence in the online retailer which is based on their belief and understanding of the growing trend toward e-tailing.

The table below shows that Online retail sales in South Africa is small relative to the total retail sales, its growth rate is substantially higher (World Wide Worx, Online Retail in SA 2011,118).According to Alexandre and Almazán, (2012), monetary transactions in the Zimbabwean economy are now dominated by electronic payment systems with more than 96 percent of local transactions now being conducted through plastic, internet and mobile money. The growth in the use of plastic money, away from cash transactions, was phenomenal in 2017 to the extent that more than 96 percent of the $97,5 billion – from the 1 billion transactions – processed in the entire country in 2017 were through electronic and mobile banking systems (Mangudya, 2018). He further articulated that, the increased use of electronic payment systems will also result in foreign currency savings as well as de-congest shopping malls.

 Moyo, (2013) argues that there is need to understand that there is a difference between cash and money and the retailers must adapt to the use of electronic money. Paelo, (2014) asserts that the number of people adopting mobile payment platforms also went up, with mobile payment subscribers increasing by 41 percent to 4,6 million while internet banking subscribers increased by 65 percent to 277 674. This measure is intended to further promote the use of plastic money, which significantly grew by 210 percent in 2017 from the 2016 position to reach a coverage of more than 80 percent of total retail transactions in the country.Drivers of Online Retail Source: https://www. StatementThe advancement of technology is significantly changing consumer behaviour and demands. This is driving retailers to employ e-commerce strategies. Hence, Zimbabwean Retailers should respond to current trends in e-commerce.Research objectivesMain objective To assess the impact of adopting online shopping in Zimbabwe.Specific objectives The aim of our research objectives are:To investigate current trends in technological advancements and usage.To determine the value of e-commerce in the Zimbabwean sector.

To explore possible strategies and approaches to online retailing.To critic the disadvantages of not having an online shopping channel To examine how technology impacts on customer satisfaction in the retail industry To propose a model that can curb or improve the impacts of online grocery shopping.Research questions How effective is online grocery shoppingWhat are the current online shopping trends?How can supermarkets like TM Pick n Pay create value using online grocery shopping?How can online grocery shopping enhance customer satisfaction?Does online grocery shopping have an influence on customer retention?Significance to the studyTo theory The research will help to see how the theory can be applied and if at all it can bridge the gaps the researcher is trying to close. The research may also bring up areas that other students or researchers can research further and add on new data in the area of study. This study might therefore bring new insight in the area thereby contributing to the body of knowledge on the impact of online grocery shopping in the FMCG industry in Zimbabwe.

To practice Over the decades the debate about the impact of online grocery shopping in the FMCG has grown in importance and significance (Carroll 1999; Carroll and Shabana 2010; Adams 2008). Due to stiff competition in FMCG industry, the players in the industry tend to use all means possible to snatch customers from each other through having skilled competent staff and keeping up to date with the latest technological trends. In Zimbabwe very few retail shops are using online grocery shopping, hence due to that, this study will show how relevance and convenient it is in the FMCG industry in Zimbabwe.DelimitationsTime scopeThe period that was considered was from 2014-2017. Geographical scopeThe research will be conducted in Harare, the capital city of Zimbabwe where the head offices and main offices of TM Pick n Pay and OK Supermarkets are located.Literature scopeThe study aims to examine literature on shared value from a broader conceptual framework then review how this concept is applied within the FMCG industry from a global, regional and national perspective.4295775306070Whether to Adopt Internet as a shopping channel020000Whether to Adopt Internet as a shopping channel-171450410845PERCEIVED BENEFIT020000PERCEIVED BENEFITConceptual framework3305175268605019018258255ADOPTION00ADOPTION89535019875504295775108585How to use online shopping – browse / buy?00How to use online shopping – browse / buy?-171450299085PERCEIVED RISK020000PERCEIVED RISK327977513335009258301238250The conceptual framework is essential in the formulation of research objective of the current study.

The conceptual framework has been formulated following the dictates of the research variables of the study. The research variables are online grocery shop and performance. These two variables have been dissected as illustrated below.Methodological scopeVarious individuals in the FMCG industry in Harare will be interviewed. Interviews shall be conducted in and around Harare using open ended as well as closed questions interview guides.

Both open and closed ended questionnaire shall be used to conduct the research. Since the area of study is somehow new exploratory research will be ideal so as to get insights on the area of interest and descriptive research will also be ideal so as to better impact of online grocery shopping in the FMCG industry in Zimbabwe.AssumptionsRespondents are assumed to truthfully answer to all questions askedThe researcher will be able to draw a meaningful conclusion from the study Respondents are assumed to answer to all questions willingly without any other influence except their willingness to participateThe sample size selected will be a true representative of the Zimbabwean marketDefinition of termsOnline grocery shopping- this refers to a grocery store that allows private individuals and businesses to purchase groceries and grocery products online and they are delivered to their households. There is usually a delivery charge for this service, (Darrell, 2017).Trend- a general direction in which something is developing or changing, (Webster, 2018).E-commerce- commercial transactions conducted electronically on the Internet.

It is also the buying and selling of products and services by businesses and consumers through an electronic medium, without using any paper documents.List of AcronymsFMCG- Fast Moving Consumer Goods Chapter summaryThe introductory chapter focused on the background to the study that gave way to the development of the opportunity statement. The conceptual framework has been outlined as it led to the formulation of research objectives and research questions.

The current research has been justified on the basis of its theoretical, problem practical and methodological contributions that are meant to make immense contributions to the body of knowledge online grocery shops are concerned. In this section of the report assumptions of the study, delimitations and limitations of the study were also outlined. The following chapter will critically review related literature on impact of online grocery shopping in the FMCG industry in Zimbabwe in line with the conceptual framework set out in this chapter. CHAPTER 22 LITERATURE REVIEWIntroductionThis chapter presents the r?vi?w?d literature pertaining to the impact of online grocery shopping on company performance in the FMCG industry in Zimbabwe. According to Shuttl?worth (2015), literature review is a critical analysis of a segment of a published body of knowledge through summary, classification and comparison of prior research studies, reviews of literature and theoretical studies. This chapter covers the definitions of online grocery and company performance, it’s the origin, forms as well as advantages and disadvantages that they bring to company performance. In this study the r?s?arch?r also r?vi?w?d the promotion of online grocery in both African and Western countries and the impact that it has on company performance in Zimbabwe.Online grocerAccording to Daniels and Jeff, (2017), online grocer refers to a grocery store that allows private individuals and businesses to purchase groceries and grocery products online.

There is usually a delivery charge for this service. Online grocery delivery services are available throughout Europe, Asia and North America, mostly in urban centres. The online ordering is done through E-commerce websites or mobile apps. According to a report from Food Marketing Institute and Nielsen American consumers are expected to spend up to $100 billion on online grocery items by 2025.Online grocery stores realise that, while the public must shop for groceries, consumers have the choice of using conventional self-service grocery stores or their online counterparts. While, originally, many Internet users purchased goods via e-commerce out of curiosity, online grocery stores must provide a strong incentive for consumers to continue to purchase their goods online once the novelty wears off (Goldstein 2002). To date, this incentive has been advertised as the convenience and ease of being able to purchase from home.

However, this concept of convenience must be extended to the convenience and ease of use of a specific online grocery system, not just the overall idea of online shopping. It is also important to note that the benefits provided by the convenience of shopping online can come at a cost to the user. Despite predictions of a high take-up rate for online grocery shopping, this has not occurred to date. The slow acceptance of online grocery shopping compared to other types of online shopping has been considered in previous research by analysing the products commonly purchased online (Kempiak & Fox 2002). Products traditionally purchased online are ‘hard-good’ items such as music and books. In contrast, shoppers are used to inspecting groceries for quality when shopping in a traditional grocery store, and some grocery products such as fruits are considered to be high-touch items (Kempiak & Fox 2002).

Shoppers using online grocery stores are not able to ‘touch’ items to assess quality. Another significant feature of grocery products is their perishable nature, with many products having specific delivery needs, such as refrigeration and a limited life span. The perishable nature of products demands a regular turnover of inventory, often resulting in changing availability of products.

This poses an added challenge for online shoppers, as they are forced to vary their purchasing patterns based on limited information.According to Keynote (2016), “the UK is considered to have one of the world’s most developed Internet grocery industries”. Yet, while the online food and grocery market is reported to have grown by almost 34 per cent in 2006, online grocery purchases are estimated to still account for only 1.6 per cent of total UK grocery sales (Keynote, 2016).

In contrast, overall internet sales in the same year accounted for as much as 10 per cent of all retail sales (BBC News, 2008). Mintel (2015) conclude that online shopping for food remains a niche market. The fast growth rate of the online grocery market presents a challenge for supermarket chains competing for share, in terms of balancing their online and of?ine investments. A better understanding of the triggers which in?uence the adoption (and the discontinuation) of online grocery shopping is vital for the strategic management of this sector, both in the “more developed” UK market and elsewhere.

Shopping for groceries online is arguably a discontinuous innovation (Hansen, 2015), requiring a signi?cant change in behaviour (see Robertson, 2007): online shoppers forfeit the social interaction of of?ine shopping and the potential to evaluate groceries prior to purchase. For online grocery shopping to develop beyond its current “niche” size, retailers need to understand not only what triggers consumers to change their purchase behaviour, but also the extent to which their online shopping experience reinforces the adoption process. Previous research pertaining to internet grocery shopping has focused on comparing online and of?ine purchase behaviour in terms, for instance, of brand loyalty (e.g. Danaher et al., 2014), shopping behaviour (e.

g. Andrews and Currim, 2014), the importance of brand names (e.g. Degeratu et al., 2010); and consumers’ perceptions of the advantages and disadvantages of shopping online for groceries (Ramus and Nielsen, 2015). Another important stream of research has examined the consumer traits of internet shoppers, either in terms of their general shopping orientation (e.g.

Brown et al., 2013), their web-usage-related lifestyle (Brengman et al., 2015), or psychographic characteristics (Barnes et al., 2017). Additionally, Rohm and Swaminathan (2014), developed a typology of internet grocery shoppers based upon their motivations for shopping online.

Online grocery shopping, is one of the fastest growing online industries. Machlis (1998) reports that online grocery sales in 1997 were $85 million–a minute fraction of overall sales of $401.7 billion–with only 10,000 U.S. households buying groceries online that year. But 6.9 million households were expected to do so in 2002. And Andersen Consulting (now Accenture) has estimated that the value of online groceries could be as high as $85 billion by year 2007, reports Dorgan (1998), with as many as 25 percent of U.

S. households participating. Nevertheless, despite such rosy forecasts for grocery e-tailing, the truth of the matter is that “no one has reported a profit yet,” says Reidy (2000). Most pure-play online grocers are still trying to break even.

Because it has such different characteristics from other online businesses, grocery e-tailing requires a different business model. Its unique selling properties lie in convenience and time savings, which appeal to busy consumers or those who simply dislike shopping for groceries. Repeat ordering through the Internet frees up time, says Dornbusch (1997), which enables consumers to do other things or engage in more specialty shopping (Source: Keh, Hean Tat, and Elain Shieh. “Online Grocery Retailing: Success Factors and Potential Pitfalls.” Business Horizons, July 2001, p.

73.)BENEFITS TO SHOPPERSOnline shopping can be enormously convenient and it’s a time-conserving task which requires just to login and type of one’s usual weekly or monthly shopping list and for most of the supermarkets, the list will get remembered each time a customer logs in, so one can just amend for each shop (Bauer and Schuster, 2016: Burke, 2014). The customer has liberty to choose a time window for the delivery and just wait for it to be delivered. According to Kutz, (2014) many people have the view that online food shopping saves them money, as they do not indulge in impulse purchases and transport costs will therefore be less than your travel costs to physically go to the supermarket.Hansen, (2005) stipulates that online shoppers will experience the same great prices and sales as the in-store shoppers, making for an affordable experience that anybody will enjoy and also the shoppers can take advantage of our online-only discounts when shopping at and Schweeger (2015): Green (2015) asserts that buying in bulk is a great way to cut your grocery costs, however, many shoppers avoid buying in bulk because it means taking up extra cart space and navigating the weight of bulky packages. Hence, online shopping for home delivery makes buying in bulk much easier simply add bulk products to your virtual shopping cart and they’ll be delivered right to their doorstep.

When one chooses to shop online for delivery means you can avoid putting extra miles on their car, as well as save on fuel and parking charges. While these savings may not seem drastic in the moment, over the course of a year they can certainly add up (Pozzi, 2012: Burke, 2014: Dada, 2016).Scholars like Ali,, (2017) commented that whether it’s 2 o’clock in the afternoon or 4 o’clock in the morning, online shopping allows one to browse the aisles when it is most convenient for them.

Though the customers will have to be present when the groceries are delivered, one can choose a delivery time frame that is most convenient for you.Grocery shopping online for home delivery allows you the pleasure of shopping from your dining room table, your couch, or your office, without navigating crowded aisles and lengthy cashier lines. That means having more time to do the things you love. Thus creating a comfort zone to the customers (Milkman 2010, Park,, 2014: Hansen, 2005). Supermarkets such as Foodtown in New York City strives to provide customers with the most convenient shopping experience yet, built upon affordable prices, ongoing sales events, and friendly and attentive service.

BENEFITS TO THE SUPERMARKETAccording to Arshad, (2015), that the advantage to have this online service is that it allows the grocery retailer to monitor the shopping patterns of their customers allowing them to advertise particular specific products to particular customers based on their previous choices in the shopping basket. There are also websites that offer to compare prices across the board. But evidently this can be tiresome and cumbersome to check on prices for a shopping trolley. With three out of five (61%) online grocery shoppers using more than one online store for their food shopping but half (49%) would like to try other supermarket websites, but many are put off by the perceived effort involved. (IGD 2010).Online Shopping 2009, published by international grocery analysts IGD, also found that 30% of online grocery shoppers purchase less often than once a month, 24% intend to try an alternative online supermarket in three next three months, and 25% would like to but are put off by the effort involved, whilst 34% expect to shop in a variety of outlets, including online, in the next 5-10 years (compared to 27% in 2007) A further 34% expect to only shop in a supermarket for everything, and 7% expect to shop just online for food and groceries'(Hanif, 2016: IGD 2010).

RiskThe shopping may not be quite right either one may miss somethings that they really need or substituted by a second best item through the saved list of groceries on the supermarket’s web page (Grewal,,2014: Dawes and Nenycz-Thiel, 2014). One can still run out of perishable items like milk in-between deliveries thus causing an extra supermarket journey. The Rise of Online Grocery ShoppingAccording to a The Nielsen Global E-commerce and the New Retail Survey polled 30,000 online respondents in 60 countries conducted in 2015, found that One-quarter of global respondents already order grocery products online for home delivery, and more than half (55%) are willing to use it in the future.Shoppers are growing accustomed to the benefits of digital in other retail settings and are beginning to expect them in grocery as well. Savvy retailers are winning by leveraging technology to enhance the shopping experience and meet consumers’ evolving desires.Increasingly, retailers are introducing e-commerce models that make it even easier for tech-savvy, time-crunched consumers to get the items they need. Fourteen percent of global respondents say they use an automatic online subscription service, in which orders are routinely replenished at a specified frequency, and more than half (54%) are willing to do so in the future.

In 2011, Tesco (Homeplus) introduced the first virtual supermarket in a South Korean subway system, and the model has spread to other markets. Today, 13% of global respondents say they’re already using a virtual store and nearly six-in-10 (58%) are willing use them when they become available.A growing number of consumers are using “click and collect” services in which they order groceries online for pickup at a store or other location. Just over one-in-10 global respondents say they order groceries online and pick them up in-store or using a drive-thru (12% each). Slightly fewer (10%) order online for curbside pick-up. More than half of global respondents, however, are willing to use these online options in the future (57% for in-store, 55% for drive-thru and 52% for curbside pickup).Long lines, parking difficulties, crowded spaces, time-consuming, everyone knows the hassles of doing groceries at the store. These are therefore the top reasons for customers to do online grocery shopping (Reitsma, 2010).

France, Switzerland, the United Kingdom and the United State are the biggest online grocery markets, with full range online retailers (Warschun, et al., 2012). The U.K. is the most developed market, with around 20% of the households doing online grocery shopping (IGD, 2013). Amazon is the leading company on the e-grocery market (Rudarakanchana, 2014).

With the launch of AmazonFresh in San Francisco it is extending its online grocery shopping branch (Somerville, 2013), but encounters serious competition from established grocery stores like Wal-Mart in the U.S. and Tesco in the U.

K. (Moskowitz, 2014). Online grocery shopping is not something that can be offered by every grocery store around the corner, it requires high investments and logistics infrastructures (Hays, Keskinocak, López, 2004). Many supermarkets do see the customer need for convenience and  therefore provide a more digital environment in store. Ranging from self-service check outs to smart shopping charts with real time feedback on promotions, recommended complementary products, sharing recipes and allowing to skip the checkout lane (van Ittersum, et al. 2013, Menezes & Usmani, 2010).

The aim of our research is to know the impact of online grocery shopping on company performance. Speci?cally, the objective of this study is to establish the role of situational factors in the process of adoption of online grocery shopping behaviour. This knowledge will assist online retailers in their customer recruitment and retention efforts and help to increase their company performance. Robertson (2017) classifies innovations as continuous, dynamically continuous and discontinuous.

Crucially, discontinuous innovations not only involve the adoption of a new product, but also cause buyers to signi?cantly alter their behaviour patterns. Using Robertson’s typology, shopping online for groceries can be classi?ed as a discontinuous innovation, because there is a signi?cant change in behaviour: selecting grocery items from a list on a web page instead of choosing items on display on a supermarket shelf. This is particularly relevant for fresh produce such as meat, ?sh, fruit and vegetables, which are rich in sensory attributes (e.g. Morganosky and Cude,2010; Geuens et al., 2013).

The changes in behaviour patterns that mark discontinuous innovations suggest that the process of adoption for these innovations may be lengthier, and possibly more problematic, than for continuous or dynamically continuous innovations. Furthermore, consumers’ perceptions of the characteristics of an innovation affect its rate of adoption (Mahajan et al., 2005; quoted in Verhoef and Langerak, 2011).According to Rogers (2013), the ?ve characteristics of relative advantage, compatibility, complexity, divisibility and communicability in?uence the rate of adoption of an innovation. In the context of the adoption process of online grocery shopping, Verhoef and Langerak (2011) investigated the effects of perceived relative advantage, compatibility and complexity on consumers’ intentions to purchase groceries online. Their research showed that consumer perceptions of the relative advantage and compatibility of electronic grocery shopping positively in?uenced the intention to adopt online grocery shopping. Perceived convenience emerged as a potentially decisive factor in determining consumers’ perceived relative advantage and compatibility of electronic grocery shopping.

Moreover, as expected, consumers’ perceptions of the complexity of electronic grocery shopping had a negative in?uence on their online grocery intentions. The focus on intentions is a major limitation of Verhoef and Langerak’s (2011) ?ndings. In contrast, Hansen’s (2015) research investigated both experienced and inexperienced online grocery consumers. Hansen’s ?ndings suggest that US adopters of online grocery shopping attached higher compatibility, higher relative advantage, more positive social norms and lower complexity to internet grocery shopping, not only compared with consumers who had never bought anything on the internet, but crucially, also compared with consumers who had purchased other goods/services on the internet, but not groceries. Hansen’s ?ndings are signi?cant for several reasons. Firstly, they indicate that online shopping is not adopted per se, but in connection with speci?c product Online groceryshopping1207 categories. This is consistent with Brown et al.’s (2013) ?ndings that the product category, rather than the shopping orientation of the individual, was a signi?cant determinant of online shopping.

Therefore, acceptance of and familiarity with internet technology do not appear to be suf?cient antecedents of the adoption of online shopping; other factors instigate the behaviour changes involved in online shopping in particular consumption categories. For example, Davis et al. (2010, p. 987) note that self-ef?cacy “is one of the major factors theorised to underlie intrinsic motivation”. Putting together Hansen’s (2015) and Davis et al.’s (2010) ?ndings, we infer that consumers who have already purchased groceries online have an enhanced assessment of their own self-ef?cacy or ability to perform this behaviour.

This enhanced assessment affects the higher compatibility and relative advantage, the more positive social norms and the lower complexity that these consumers attribute to internet grocery shopping, compared with other internet shoppers. This inference is consistent with Bandura’s (2017, p. 205) claim that “experiences based on performance accomplishments produce higher, more generalised and stronger ef?cacy expectations than … vicarious experience’.

Furthermore, according to Bandura’s (2017) Social Cognitive Theory, contextual factors, including the social, situational and temporal circumstances under which events occur, have an impact on how self-ef?cacy is cognitively appraised. The suggestion of a continuous reciprocal interaction between the environment in which an individual operates, his or her own cognitive perceptions (self-ef?cacy and outcome expectations) and behaviour, suggests that situational factors need to be investigated as prompts for the adoption of online grocery shopping. Advantages / Perceived BenefitThe term of online shopping depends on the consumers’ perception over the activities that conducted through theInternet. Although the Internet provides some risks, in a different point of view Internet also gives big benefits toconsumers. Customers would like to purchase online because they discover the advantages of using it.

Accordingto Forsythe, et al. (2006), perceived benefit replicates about what customers gain from online shopping. The perceived benefit of online shopping can be measured from the level of satisfaction over the product and thebenefit of online shopping.

According to Kim et,al (2008), perceived benefit is the belief of consumers to whichextend they feel this online transaction is much better rather than other online transactions. Internet shoppingbenefit has significantly related with attitude toward online shopping and intention to shop online (Jarvenpaa &Todd, 1996). In fact, the consumers’ perceived benefits are the expansion of online shopping advantages orsatisfaction that satisfies customers need and want (Delafrooz, Paim, ; Khatibi, 2011).Online grocery shopping ordering potentially reduces the inconvenience of grocery selection by eliminating trips to physical stores. It theoretically enables consumers to shop much more quickly by occasion or for targeted fill-in trips, precisely when a trip to the grocery store is most difficult.Online grocery shoppers today do not appear to enter the experience looking for a radical new way to shop (even if they eventually start shopping differently due to use of online platforms). For consumers whose shopping behavior is full of dull, fill-in and pantry-stocking trips, online grocery has interesting potential to remove drudgery. For others who are not so tired of food shopping, online grocery will most likely not seduce them until super-fast delivery becomes reliable and feasible (e.

g., Instacart) and ordering processes are more closely harmonized with how households really buy food. By examining food culture more closely, technology-driven online grocery solutions can eventually earn a greater share of shoppers.

The big advantage of ordering groceries online is that you can browse the virtual shopping aisles 24/7 without leaving the comfort of your sofa. Many sites have an online assistant that is able to give automated answers to the most common problems. The very best grocery websites also have online chat facilities that allow you to interact with a real person so that you can sort out any ordering problems immediately.Online ordering usually gives you the option of having either home delivery or store collection.

Most stores give you a two hour time slot for your grocery delivery or collection; some may narrow it down to just one hour. This makes the service very convenient. With an 18 hour delivery window to choose from, seven days a week, you can easily fit your grocery shopping around your other commitments.Shopping online means no queuing at the checkout to pay, no parking hassles as you search for a space in the shopping mall car park and no negotiating the in-store crowds if you have to shop at peak times. The last thing that a grocery store wants is dissatisfied customers complaining about having received poor quality goods.

This makes a lot of extra and unnecessary work for their customer complaints department. It is therefore good practice for them to only send the freshest produce out on the home delivery orders. A reputable store will give a guarantee that if you are not happy with your delivery then they will give you a refund.An online survey of US shoppers in June 2016 by (sample size 1,995) found online shopping is liked because of its convenience, value and variety. Respondents were asked to choose attributes from the list below that make a food product a good fit for online shopping. They could select more than one option.Long life/ non-perishable? 49% agreed.

Difficult to find in stores? 48% agreed.Easy to ship? 39% agreed.Don’t need them right away? 32% agreed.Things I like to stock up on? 31% agreed.I purchase these products on a routine basis? 15% agreed.

Not essential for my meal planning? 14% agreed.Heavy/ large? 12% agreed.Need they right away? 7% agreed.Other? 2% agreed.None. Food products are not a good fit for online shopping? 22% agreed.How Quickly Are Online Retail Grocery Sales Growing?A survey by Mintel (retail analysts) showed that UK online retail sales have more than doubled in the last five years. In 2017, 48% of Brits did at least some of their grocery shopping online.

Online food sales now account for about 24% of the whole grocery market.It is a similar story in North America. The US Food Marketing Institute reports that in 2017 43% of millennials (young people) shopped online for groceries at least occasionally. This is a 50% increase over a year ago. The convenience of online grocery shopping is proving to be a hit with time-pressed consumers.

DisadvantagesOnline stores are perceived as having competitive disadvantages with respect to shipping and handling charges, exchange/refund policy for returns, providing an interesting social or family experience, helpfulness of salespeople, post-purchase service, and uncertainty about getting the right item. (Jacqueline J.KacenaJames D.HessaWei-YuKevin Chiangb :2013)Table 1. Market Opportunities Analysis of EGS vs. Established Brick and Mortar Grocery Retailers EGSOpportunities ChallengesLocal market benefits Buyout by larger firmsAncillary services opportunities Consumer behavior patternsBrokering Unproven logistical modelNiche markets (e.

g., natural foods) Logistically “difficult” productsHigh population-density areas Tough to differentiate firms on InternetConvenience market pays more Traditional channels improving their value propositionsValue chain disintermediation Traditional channels have significant financial backingBonuses/loyalty programs Limited selectionEstablished Brick and Mortar Grocery RetailersLocal market benefits Behaviour patterns (impulse purchases)Ancillary services opportunities Differential pricingConvenience market pays more Logistical modelPhysical presence can be leveraged Marketing strategies are unclearProvide local customer service Additional operating costs (trucks, labour)Bonuses/loyalty programs Build-up of individual orders hard to handle Local market benefits Behaviour patterns (impulse purchases)Ancillary services opportunities Differential pricingOnline retailers need to build customer awareness and may be more interested, at least initially, in customer acquisition and revenue growth than profitability. EGS models are often predicated on issues of control and cost with an expectation that cost savings can be generated through a reengineering of the supply chain for grocers. These expectations are reflected in most of the United States examples. Supply chain management is a critical focus for these models. Wholesalers provide an important aggregating function for the industry. Distribution centers are critical for effective distribution. The model for online grocers changed the focus of delivery from pallet-size connections between distribution centers and grocery stores to an individual delivery level at the individual consumer’s home or business.

Difficulties in making the logistics sequence efficient and profitable continue to nag the early pure electronic grocery shopping services. The logistics sequence is based on a distributor’s model, with central warehouses serving specific regional delivery zones. Internet-only grocers are establishing alliances with grocery wholesalers to shorten the value chain.

The costs of running an Internet grocery business can be reduced significantly if supply channel costs are reduced. This model was adopted, for example, by Webvan. Webvan invests substantially in state-of-theart distribution centers to coordinate the distribution function and save costs through automated order management and stock picking. The projections in cost savings suggest handling the volume of four supermarkets for the cost of one (Howell, 2000). Additional savings include inventorying only what is needed to replenish current orders, producing a higher “turn” rate of goods and resulting in less “shrink,” or product waste. Additional efficiencies include lower costs for real estate for warehouse facilities and fewer employees (Howell, 2000). The shortened value chain is offset to some extent by the cost of delivery to end-users.

The cost for picking, packing and shipping of online orders appears to be exceed the average delivery charge of $8-9. Depending on labor costs, the actual costs to the EG can be as much as $20 per online order (Tillett, 2000). However, this amount is larger than can be passed directly on to the consumer through a direct delivery fee. A shortened value chain for Internet grocers will make delivery to consumers a greater proportion of the their cost. The types of delivery service available and the efficiency of these services will play a major role in defining the margins available in the Internet-only business.ESTABLISHED BRICK AND MORTARThe larger, more traditional retailers know that ‘setting-up-shop’ on the Internet is not as simple as establishing a Web site and taking credit card details. The traditional retail grocers, being established companies, unlike Internet startups, have an established customer base, brand image, and reputation. Many of the European examples attempt to leverage the existing reputation as well as logistics assets by extending the presence of existing grocers into the electronic space.

Strategies such as customer profiling, customer feedback, customer surveys, and tailored product / serving offerings potentially add value to grocers with online channels since these capabilities are not readily available via the traditional grocery channel. Concurrent offerings can also be incorporated into the online sites at much lower costs and in faster time frames. Efficient supply chain management for established grocers, linked by technology, are critical to improved margins, delivering reduced costs and further improving efficiencies (Palmer, 2000). Electronic connectivity between wholesalers and retailers forged ahead in the mid to late 1990’s, primarily in the area of ordering, invoicing, credit, and settlement of payments. High technology distribution centers were established to reduce cost and reduce inventory. These infrastructure investments also offered opportunities for establishing a hybrid strategy — an online presence as an adjunct to physical stores. Moving to the electronic channel may, in fact, create some cannibalization of existing grocery market share.

Of greater concern is the possibility the electronic channel moves customers to an even lower margin channel. The lower margins are created by the model in which the established chains are forced to work around “large brick and mortar” investments that do not accommodate online ordering. The online ordering also does not take advantage of impulse purchases as readily as in-store displays. Finally, the considerable logistics costs of picking, packing and sometimes delivering orders suggest that little value is currently being added to traditional grocery operations through the Internet.

Traditional grocery chains would appear to have two options: 1. to construct efficient delivery systems for online goods or 2. use the existing network of “brick and mortar” assets to provide a pick up point for consumers who have ordered on line (thus eliminating an expensive part of the value chain).

Regardless of the business model used to enter the EGS market, thegroceries must be delivered to the customer. Home delivery services are oneapproach, but present both a cost and a capacity issue. Larger volumes may beachieved using other mechanisms.One of the biggest challenges facing Electronic Grocery Shopping (EGS) is related to the nature of groceries. A common shopping bag consists of dry, fresh, frozen and liquidgroceries. The crucial issues are:• How to manage the storage of these different products of differenttemperature requirements• How to make sure that the perishables are fresh and the ice-creamhasn’t melted if the groceries are picked up by the customer severalhours after the goods reach the delivery pointDisadvantages / Perceived RiskAlthough there is supply and demand for online grocery shopping, only 3,3% of global supermarkets sales of $ 60.000,- billion (FMI, 2012) is coming from e-grocery, expected 4% by the end of 2014 (Hamstra, 2013). Comparing with traditional way of shopping, online shopping perceived to have higher risk.

It’s able to reduce the willingness of consumers to purchase good or service online (Barnes, 2007). Online shoppers are afraid to suffer losses by the time what they expect is not the same with the reality (Pavlou, 2003). Researchers have identified various risks associated with online intention such as delivery risk, privacy risk, quality risk and time risk.Main reasons for the little use of online grocery shopping can be found in trust, costs and habits.  TrustEspecially for fresh products, customers  lack trust in employees’ choice and product quality without seeing it themselves (Galant, López & Monroe, 2013, pp 23). “Putting trust into the hands of robots and employees who aren’t necessarily as observant isn’t easy.

While Amazon does let you choose between “ripe” and “not ripe” avocados, everything else is a gamble.” (Vaknin, 2013). CostLower cost is one of the main reasons for customers to shop online. Due to the low margins on groceries, extra cost like; minimum amount of spending and delivery cost are charged for online grocery shopping. This has a negative influence on the customers’ decision to do online grocery shopping (Hays, Keskinocak, López, 2004).HabitDespite of the hassles experienced during grocery shopping in store, customers are used to this environment and it is part of their weekly routine and has become ritualised. Breaking with these habits, emotionally and physically, is something that takes time (Hartman Group, 2013).  “Most customers were not ready to change their shopping habits, and even if they were, they preferred to buy from existing stores selling online, which they found familiar and more reliable.

” (Galant, López ; Monroe, 2013, pp 31).Sometimes You Can’t Get What You WantCompanies will notify you if the product you want is out of stock but stock may also run out after you have ordered, whilst this can be annoying most companies will try and substitute your desired items for something of similar price and quality.You Can’t Personally Look at ItemsAre you picky about the softness of your loaf? Shopping online won’t allow you to check the quality of your products however companies will always try to deliver products to a high standard.

Delivery Charges Can Be ExpensiveOrders delivered home can be expensive; most supermarkets reduce their delivery charge once orders go over a certain price, this encourages customers to order a bigger shop online to avoid the higher delivery costs and ensure you get the most out of your money. Websites that offer a same-day delivery scheme may also charge more for the service so it’s better to plan ahead.Did You Remember Everything?You’ve made your order and suddenly you remember you forgot to add the eggs! Most supermarkets will deal with your order on the next working day or one the day specified when ordered allowing you to change your order the night before. the cons:It can be more expensive. Depending on the store, there can be additional costs for usage and delivery fees.

Cannot handpick each item. Buying fresh produce can be a challenge since you are unable to see the quality of the item before you buy it.may still need to go the grocery store. If you only use the online services for your weekly or bi-weekly trip, you may still need to go to the store for perishable items in between.

If you are a shopper who writes out a grocery list and sticks to it, online shopping may be more expensive for shoppers are not able to take advantage of in-store specials, which may vary from branch to branch – but in some cases the online prices are simply more expensive. in delivery.

Lack of significant discounts in online shops. …

Lack of touch and feel of merchandise in online shopping. …Lack of interactivity in online shopping. .

..Lack of shopping experience.

Lack of close examination in online shopping. …Frauds in online shopping.STATE OF ONLINE GROCERY SHOPPING IN AFRICAREST OF AFRICAAfrica’s middle class is rising and they have money to spend.

About a third of the continent spends between $4 to $20 a day—a group that is expected to grow to 42% by 2060, according to data from the Africa Development Bank. That’s more than a billion people.Consumption on the continent rose to more than $1 trillion in 2012, from $364 million in 2000, an annual rate of growth of 10.7%.With deepening internet penetration, some of this spending is starting to happen online. With 50% of the continent expected to have access to the internet by 2025, online shopping could account for 10% of retail sales, or $75 billion, according to a McKinsey report (pdf).

Google points out that online searches on the continent are rising with commercial queries showing a significant jump.All this is inspiring the emergence of e-commerce platforms trying to cash in on Africa’s new-found wealth.Nevertheless, with deepening internet penetration and mobile becoming the primary tool through which people engage with the world, the trend suggests that its inevitable that African consumers will migrate to e-commerce. The global growth rate of e-commerce is 16.8%; Africa’s e-commerce space is growing at a rate of 25.8%. Meanwhile, in some of Africa’s biggest markets, a majority of internet users already shop online or expect to do so in the future.

But some argue that, despite enormous potential, the African e-commerce space still faces significant challenges. Ndubuisi Ekekwe, writing in Harvard Business Review, points to the failure of the online business directory Mocality and the mobile advertising platform inMobi as signs that e-commerce in Africa has yet to mature. Even Jumia, despite its market dominance, has yet to turn a profit, Ekekwe notes.Nevertheless, with deepening internet penetration and mobile becoming the primary tool through which people engage with the world, the trend suggests that its inevitable that African consumers will migrate to e-commerce. The global growth rate of e-commerce is 16.8%; Africa’s e-commerce space is growing at a rate of 25.8%.

Meanwhile, in some of Africa’s biggest markets, a majority of internet users already shop online or expect to do so in the future.SOUTH AFRICATwo of South Africa’s major food retailers – Pick n Pay and Woolworths – offer online shopping services and deliveries.While both groups have reported that online purchases account for a small portion of revenue approximately 1% to date, there has been an increase in consumers perusing the digital platforms to do their grocery shopping.According to PRINSLOO (2016) Pick n Pay South Africa has 40 000 new online customers • establishing online warehousesMassmart (a Division of Walmart) has Online sales R182.7 million • Working towards a profitable omni-channel presence • Traffic on the website increased by 65% and had 11 million unique visits during 2015 • Online sales represents 2% of total annual sales • Customers shop online and in-store • Click-and-collect remains a popular choiceWoolworths to move to a single e-commerce platform across the group • WW David Jones brand online sales up 48% to 3.5% of total sales • Woolworths Country Road online sales up 28% to 11.6% of total salesZIMBABWEOnline grocery shopping has not yet taken off in Zimbabwe due to low internet penetration.  With the installation of broadband currently in progress, online grocery shopping may improve in the medium term, especially when targeting the wealthier classes of consumers.

Current Market TrendsZimbabwe has low levels of online grocery shopping because the culture of online purchasing has not taken hold in the country.  In addition to this, local courier services are expensive and delivery to remote areas is rare.  Furthermore, there have been very little marketing of the virtues of online grocery shopping in Zimbabwe.Domestic Online Grocery Shopping (OGS)There is very little B2C trading in Zimbabwe because of the constraints noted above with only a handful of players such as Hammer and Tongues, Foodworld and Econet’s Ecoshopper, and 10ngahE-commerce is not as huge as it should be in Zimbabwe. Choppies announced a deal with Kamelee, a ‘click and collect’ platform. This allows the purchase of groceries online and collection ‘offline,’ that is in person.

Choppies is mainly targeting those in the Diaspora, allowing them to buy groceries for family here in Zim. Grocery shopping is done every single month and so the idea is actually not bad.( Sengere: 2017)TYPESE-groceryE-commerce is defined by the American Marketing Association as: “A term referring to a wide variety of Internet-based business models.” (n.d.), E-grocery is therefore defined as business models for online grocery shopping.There are two different practices of online grocery retailers (Morganosky and Cude 2000). The first one is called ‘Online Retailers’.

These are basically virtual supermarkets since they only exist online. Typically, they pick and fill consumers’ orders through the use of a warehouse that stores a variety of products. Products are then delivered to consumers weekly (Morganosky and Cude 2000, Kirsner, 1999 #564).

In addition, others provide consumers with a special unit, containing refrigerated and frozen sections, which is installed in the consumers’ garage at no extra cost. A flat monthly fee for the service is charged to each consumer for the service provided, which includes one delivery per week (Lundegaard 1997; Morganosky and Cude 2000). The second practice is called ‘Online Grocery Shopping Service’. This service is typically offered by the existing supermarkets. Consumers’ orders are picked from a local supermarket and then delivered to the consumers. In some cases, the consumers visit the supermarket to pick up their orders. The cost of using Online Grocery Shopping Service varies, depending on the individual retailers and services required.

Some retailers offer free delivery for orders above a certain minimum amount (Morganosky and Cude 2000).In Zimbabwe, two major retailers Foodworld and Hammer and Tongues , have recently offered an Online Grocery Shopping service to consumers. In addition, a number of online retailers such as 10ngah, Nyashanyasha, Ownai, Zimart and Zimbuyer have been established. Most of these virtual supermarkets offer competitive prices to a wide range of grocery items and emphasize on the freshness and quality of their products, as well as the convenience they offer. Furthermore, some offer incentives such as payment on delivery as well as free delivery to customers with orders over $100 (www. However, none provides extra services apart from delivering grocery items ( There are several business models for e-grocery (Hartman Group, 2012,  Hays, Keskinocak, & López, 2004, Warschun, et al. 2012), the four main ones are illustrated below.

                                                     Figure 1 – E-grocery business models Four business models for online grocery shopping.Store to home: this business model is for an existing grocery store. Customers can do online grocery shopping at the grocery stores’ webpage and the products will be home delivered.

An example is Safeway that offers same day delivery by orders before 8:30 AM and 1-hour delivery windows.Click-and-collect: this business model is also for an existing grocery store. Customers can do online grocery shopping  and collect the products at the nearest (or desired) location.

En example is Walmart To Go. Walmart offers free in-store pickup. “According to its own study, approximately 55% of its surveyed customers would prefer to pick up groceries than have them delivered, primarily because it would allow them to pick up items they forgot.

From Wal-Mart’s perspective, this means that it’s likely for many customers to enter the store.” (Moskowitz, 2014)Pure player delivery: this business model is for a pure online player. Customers can do online grocery shopping and get their groceries home delivered. An example of pure player delivery is AmazonFesh, when ordering before 10:00 a.m.

groceries will arrive by dinner.Drive-through/3rd part collaboration: This is a business model for an online player with a warehouse or that have a collaboration with other parties. Customers can do online grocery shopping and pick their groceries up from a drive-through at the warehouse or the 3rd party. An example of the collaboration is Giant Foods, grocery orders can be picked up at gas stations, without having to leave your car (Health, 2013).Established grocery-chains most predominant advantages over online players “are massive resources, logistics infrastructures, and existing customer base, which lower the barrier to entry of traditional grocery stores” (Hays, Keskinocak, López, 2004, pp 30).Source: http://www.brandba.

se/blog/2014/4/17/online-grocery-shopping-revolutionCHAPTER THREERESEARCH METHODOLOGYIntroductionThis section shows the methods and procedures applied in the study to understand the impact of adopting online grocery shopping on company performance in the FMCG sector in Zimbabwe. With also research methodology which is the way used to systematically solve research problems, the researcher studied various steps that are generally adopted in studying the research problem along with logic behind them. It answers questions concerning the research philosophy, research design, target population, sampling criteria, data collection tools techniques.

Lastly, the section will also outline issues to do with validity and reliability of the study, ethical issues and how date is going to be analysed and presented.Research philosophyAccording to Saund?rs and Thornhill (2012), r?s?arch philosophy can b? defined as the d?v?lopm?nt of the r?s?arch background, r?s?arch knowl?dg? and its natur?. Coh?n ? (2012), also defines r?s?arch philosophy as the broad framework, which compris?s p?rc?ption, b?li?fs and understanding of several theories and practices that are used to conduct an r?s?arch. Two major r?s?arch philosophies have b??n identified and these are positivism and int?rpr?tivism (Saund?rs and Thornhill, 2012).For purposes of this study the research used the pragmatic approach.

Pragmatics can combine both, positivist and interpretivism positions within the scope of a single research according to the nature of the research question (Lewis, 2012). Saunders (2012) further added that pragmatism research philosophy accepts concepts to be relevant only if they support action. This theory uses both qualitative and quantitative methods. The mixed method approach research inquiry employs both qualitative and quantitative approaches in a research work for the purposes of breadth and depth of understanding and which then provide an understanding that is much better of the research area than the use of one method. The philosophy was chosen mainly because of its use of quantitative date as well as qualitative data thus allowing the researcher to get more information.

It also allowed flexibility in selecting the research methods to best answer the research questions. Research design and settingA descriptive cross sectional study was used and according to Omair (2015), descriptive studies are designed to gain more information about characteristics within a particular field of study. Descriptive study provides a picture of situations as they naturally happen and it also provides an adequate tool to assess respondents’ opinion on the research problem. This design assisted the researcher to understand as well as be able to describe some elements noted from the population which is understudy.

Target population and sample sizePopulation Table 3.1Respondents Categories Population elements LocationTM Pick n Pay 200 Avondale Bon Marché 150 Avondale TM Pick n Pay 100 Sam Levy Bon Marché 50 Sam LevyTotal population 500 Source: Primary data (2018)As mentioned in the title of the research, the researcher will mainly focus on the impact of adopting online grocery shopping on company performance in the FMCG sector in Zimbabwe. According to Cooper and Schindler, (2003) population is a total element needed by the researcher in making some interference with. Therefore, the target population came from the managers and customers from Avondale and Sam Levi’s TM Pick n Pay and Bon Marche respectively with a total of 500 respondents. Sampling Methods ; TechniquesPopulation sampling is the process of taking a subset of subjects that is representative of the entire population and the sample must have sufficient size to warrant statistical analysis. (Collins, 2013). Sampling is usually done in order to test every single individual in the population.

Sampling FrameThe study is going to use the systematic random sampling technique for the customers and convenience sampling for the managers. The convenience sampling technique was used where respondents (managers) were selected because of their convenient accessibility and availability to the researcher. Systematic random sampling was used for the customers which sample members from a larger population are selected according to a random starting point and a fixed periodic interval.Sampling ProcedureThe main sampling methods are non-probability and probability sampling. Since the study is based on the pragmatic philosophy and the researcher use non-probability sampling. In non-probability sampling, the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.Sample Size DeterminationThe sample is lesser, nonetheless the optimistically representative compilation of the components from the target population which was used to establish the truth regarding the population, (Field, 2015, Krejcie ;Morgan (2016), the researcher may target 30% (0.3) of a population of the study.

The sample population was 500 employees and 150 respondents which are the 30% of the sample size were used.Data collection instrumentsA pretested closed ended questionnaire was administered questionnaire was used to collect primary data from study participants. This was chosen to match the nature of the research design for this study. The questionnaire had an advantage because responses were gathered in a standardized and objective way. Data collection and administeringPrimary DataIt was mainly collected through the questionnaires and these where sent to respondents physically and some were sent via email. The researcher then verified if the questions had been answered from the questionnaires that were collected physically.

This was done so as to get better clarification of responses. In order to avoid disappointment, appointments were set with those to be interviewed and interviews were conducted at convenient locations so as to avoid inconveniencing the interviewees.Validity and reliability of findingsData validity is mainly concerned with the meaningfulness of the research component (Maliki 2014). Saunders et al (2009) noted two elements to validity that include how accurate are the data collection methods in measuring the answers to the research problems and objectives? Secondly how true are our research results? These two questions generally define the validity of a study. Once a research study meets those requirements it can be deemed to be a valid study.

In this research, the researcher ensured that the questions asked, addressed the research problem, as they were presented in an ambiguous way that made it simple for respondents to provide the researcher with meaningful responses that result in meaningful conclusions.Joppe (2000) as highlighted in Golafshani (2003) defines reliability as the extent to which results are consistent over time and an accurate representation of the total population under study is referred to as reliability and if the results of a study can be reproduced under a similar methodology, then the research instrument is considered to be reliable. Golafshani goes on to articulate that embodied in the definition of reliability is the idea of replicability or repeatability of results or observations. This means that for a research study to be considered to be reliable, it must be replicable to other scenarios. According to Drost (2008; 108) as quoted in Maliki (2014) one way of measuring reliability is to use the test/retest reliability which is the “temporal stability of a test from one measurement session to another. A pre-test was done by the researcher so as to improve the reliability of the research questionnaires where a few individuals where selected who responded to the questions and also evaluated them.

Ethical considerationsFouka and Mantzorou (2011) define ethics as it is said that ethics is the branch of philosophy which deals with the dynamics of decision making concerning what is right and wrong. They go on to explain that research ethics involve requirements on daily work, the protection of dignity of subjects and the publication of the information in the research. Ethical considerations in research involves, respect for anonymity and confidentiality, respect for privacy, vulnerable groups of people and Informed consent. The researcher took into consideration all these factors and requested the respondents’ as well as the interviewees’ consent before any proceedings took place. The researcher respected the subjects’ privacy and confidentiality requirements. If any subject in the research study wanted to remain anonymous, the researcher respected that and did not publish their identity.

Data presentation and analysis toolsThe quantitative data will be fed into SPSS software and presented data in tables and graphs. This will enable to have clear illustrations of trends, cohesions and disparities of the survey respondents. Percentages will be used thus enabling the study to illustrate the proportion of respondents giving a certain response.Chapter SummaryThe chapter explained on research design, target population, sample design and sampling. The methodology used to collect data was discussed with the use of both exploratory and descriptive designs were used as well as the self-administered questionnaire was also used to collect data.

Selection of sample was done using systematic random sampling as well as convenience sampling. The fourth chapter analysed the findings from the collected data using statistical analysis and interpretations were made.QUESTIONNAIREIn order of preference please name the top three stores and location from where you regularly purchase food and groceries:No. Store Name Location / Area1. 2. 3. Age: 18-2425-3030-3940-4950-6465+ Gender: Male Female Income (USD)0 – 499500 – 9991000 – 14991500 -19992000 + Occupation: Businessperson Self-employed Professional Stay at Home Parent (Housewife)Student RetiredTop of FormWhere do you tend to buy your groceries from, a traditional supermarket (such as OK/Bonmarche, PicknPay) or from neighbourhood convenience store? I buy from traditional supermarket I go to my neighbourhood convenience store I buy an from traditional supermarkets and neighbourhood convenience stores I do not do any grocery shoppingTop of FormHow often do you do your grocery shopping? Weekly Fortnightly Monthly Every few months Only used once Only use for special occasion I never do my grocery shopping onlineTop of FormWhich best describes the type of grocery shopping you do? Main grocery shop Top up shop Special occasion/party Bulk-buy shop Other, please specify: Would you consider shopping for grocery shopping online? YES NO Bottom of Form4. Page 4Would you recommend shopping for grocery online to your friends, relatives and colleagues? YES NO Top of Form Which of the following reasons describe your reasons for grocery shopping online?Tick all that apply.

  My preferred supermarket is too far away Online shopping is easier for me as I don’t have to carry heavy bags Online shopping allows me to order items in bulk It is difficult for me to visit my local supermarket as I have health related problems I do not drive/ own a car, so getting to a local store is difficult for me My local shopping centre does not meet my needs Online shopping helps me to buy healthier food I work and online shopping allows me to deliver my goods at a time suitable for me. Other, please specify: Top of FormWhich of the following is the biggest concern that would deter you from grocery shopping online? My preferred supermarket does not have an online store Current online grocery shops do not have the variety that I seek Cybersecurity risks and online fraud I am technology averse Other, please specify: Top of FormTo what extent do you agree or disagree with the following statements?Completely agree Agree Disagree Completely Disagree Don’t knowOnline shopping helps to control my spending habits Online shopping is a much quicker/convenient process than visiting my local supermarket store Online shopping is too much hassle to set up I would prefer to visit a supermarket store Bottom of Form7. Page 7Top of FormWhich of the following online grocery retailers are you aware of?Tick all that apply*For the Respondent – The different possible answer choices are presented in alphabetical order. Foodworld Hammer and Tongues Online Nyashanyasha Ownai Zimbuyer ZimartBottom of FormTop of FormWhich of the following online grocery retailers have you previously bought from?Tick all that apply Foodworld 10ngah.

com Hammer and Tongues Online Nyashanyasha Ownai Zimbuyer Zimart Others, please specify: Bottom of Form9. Page 9Top of FormIf you were to buy your groceries from an online retailer, at what time of the day, would you prefer to have your groceries delivered? 9.00am -11.00am 11.00am – 1.00pm 1.00 pm – 3.00pm 3.00pm – 5.00pm 5.00 pm -7.00pm 7.00pm – 9.00pm 9.00pm – 11.00pm All Hours (24/7)Bottom of FormChapter 4 MaterialQuestionnaire ObservationsSECTION A – DEMOGRAPHICSR?spons? Rat?Qu?stionnair? response rat?A total of 150 questionnaires that w?r? distributed as highlighted in the above below 120 were returned and this yielded a response rate of 80%. Th? r?spons? rat? from ?ach of th? organization ar? also r?pr?s?nt?d in th? tabl?. According to Bryman and B?ll (2017), a r?spons? rat? of 60% is good ?nough to warrant validity and r?liability of th? study findings. Therefore for purposes of this study, the researcher’s response rate is considered to valid and reliable. TOC h z c “Figure” Tabl? 4.0. showing th? r?spons? rat?R?spond?nts Qu?stionnair?s Distribut?d Qu?stionnair?s Responded Qu?stionnair?s not r?turn?d R?spons? rat?Source: Primary data 2018DemographicsThis s?ction provid?s an analysis of th? d?mographic data which was coll?ct?d during this study and th?y assist in ?stablishing th? appropriat?n?ss of th? study sampl?. Th? d?mographics charact?ristics us?d to profil? th? r?spond?nts in this study includ?d ag?, g?nd?r, l?v?l of ?ducation, job position and y?ars in curr?nt post. Th? r?sultant statistics ar? as shown in Tabl?s and Figur?s b?low;Age distribution of respondentsThe above pie chart revealed that 51% of the respondents were from male respondents and 49% from females. A new study from Business Insider Intelligence (2017) confirms that men are doing a lot of shopping online. Hence, men are thereby helping drive malls into the ground, which are already struggling on multiple counts. ……….. asserts that that men tend to make grocery shopping a mission and spend less time in brick and mortar stores compared to women. Men will also buy fewer items on each trip and will likely leave the store if they can’t find an item. Online grocery shopping is the answer for men who are looking to avoid physical trips to the store. For these reasons, online shoppers are disproportionately men who are looking to minimize physical trips to the store.From the research done by Chifamba, (2017), it revealed some statistics from the online shop Hammer n Tongues that men shop online more than women.Bar graph showing the age groups of the respondents3. Age Respondents %18-24 15 13%25-30 50 42%30-39 38 32%40-49 11 9%50-64 5 4%65+ 1 1%TOTAL 120 100%4. Current Trends in online grocery shoppingCurrently the majority of shoppers prefer the traditional brick and mortar stores as evidenced by 85% as compared to 5 % who use online shopping and 10% use a bit of both channels to purchase their groceries0usyzE-grocery is an upcoming market. Although it is growing slowly, the coming of the Millennium generation can drastically change the landscape. It is important that grocery-chains are preparing for these changes, starting with a multi-channel approach.  A lot of research has been conducted on the digitalisation of the in-store environment and the distribution channels.WHY DO PEOPLE DO GROCERIES ONLINE The growth of online CPG sales has been driven in part by the maturation of digital natives, the consumers who grew up with digital technology (the Millennials and now Generation Z). These consumers have an unprecedented enthusiasm for and comfort with technology, and online shopping is a deeply ingrained behavior. Current usage of six e-commerce options (home delivery, in-store pickup, drive-through pickup, curbside pickup, virtual supermarket and automatic subscription) is greatest among the youngest respondents, and they are also the most willing to use all of the e-commerce options in the future. For example, 30% of Millennials (ages 21-34) and 28% of Generation Z (ages 15-20) respondents say they’re ordering groceries online for home delivery, compared with 22% of Generation X (ages 35-49), 17% of Baby Boomers (ages 50- 64) and 9% of Silent Generation (ages 65+) respondents. Younger respondents are also the most willing to use all of the e-commerce options in the future. “Millennials are at the beginning of their careers and are starting to form households, while the oldest members of Generation Z will soon be graduating college and joining the workforce,” said Dodd. “These generations will shape our economy for decades to come. Therefore, it is critical that retailers and manufacturers understand how these consumers are using technology and include digital touch points along the entire path to purchase.”Non online shoppers are mainly older, and mainly in middle and lower LSM segments. The non-online shoppers mainly do so because: • they still enjoy shopping in the store • they are concerned about credit card security • they still want to touch and feel the product • they feel uncertain about the quality of the product and/or • they are not computer literate Of the 57% non-online shoppers, 53% indicated that they will consider online shopping in future Distrust: Rich Africans have yet to embrace online shopping, due to online fraud. In Nigeria, for example, where phishing is common, people are skeptical about putting their credentials online. Without attracting the best spenders, the sector will continue to serve primarily college students and a younger population. Some of the companies offer cash-on-delivery to mitigate this challenge.Cost of broadband: Africa enjoys tremendous growth in mobile internet which is the popular means for people to access the web. While using Facebook may be free on some telecom networks, watching a three-hour educational piece of content on Coursera or MIT edX will require a $50 prepaid internet expense in Congo. With the high cost of bandwidth, video-based internet businesses in Africa struggle; the market leader, Irokotv, relies on the diasporas for most of its revenue.Logistics: and eBay are great companies that depend on the U.S. postal system to serve their customers. I sell my own books online in U.S.; once a buyer makes payment, I drop the book off at the post office to close the transaction. In Africa, it’s more complicated with nonfunctioning postal systems. Online businesses operate delivery motorbikes, which increase the cost of doing business there.African open market: In Africa, there are “markets” everywhere, starting with the security guards who run stores in front of their masters’ mansions. There are open markets, supermarkets, and even unemployed youth selling things at traffic stops in major cities. An e-commerce company must beat these entities on prices to be competitive. Because nearly all e-commerce firms are formalized for access to the banking system, they pay taxes. In Rwanda, an 18% VAT can put an online business at a disadvantage when the informal competitors do not collect same.Fragmented markets: For all the efforts to make Africa appear as one market, it is not. A company has to set up country-specific sites because of barriers from cross-border payments, languages, cultural differences, and other factors. This affects economies of scale and impacts efficient allocation of capital with duplication of resources across the region.Literacy rates: Even if all the infrastructure and integration issues are fixed, illiterate citizens may be unable to participate directly on e-commerce sites that require reading and writing skills. Chad, Niger, and Burkina Faso, for example, have literary rates less than 30%. Without investing in the education of these citizens, the pool of potential customers for web entrepreneurs is greatly reduced.There are some companies attempting to tackle these issues. Take Jumia, a leading online retailer in Nigeria that sells everything from home goods to mobile phones to health and beauty supplies. Founded in 2012 with connection to the German Samwer brothers, which specialize in cloning American web businesses in Europe and elsewhere, it has more than 1,500 staff. It raised $150 million in new funding on a valuation of $555 million last November. Jumia is not alone; there are web firms like Konga, Olx, and Souq with millions of dollars in funding operating in Africa.The problem, though, is that while Jumia and others may be successful by market share, they are still not profitable. According to Rocket Internet’s 2014 public listing, Jumia had $28 million in net revenues, with $32 million in losses.Any startup with few millions of dollars in funding can jump in preeminence in the region because Africa has a poor pool of companies. There are 3,186 companies in the continent (in all sectors) with revenue of above $50 million. So when a firm raises $100 million, it can beat anyone for market share because there are so few companies — especially in the web sector — that can challenge it. But then the company is required to seed a sector in a place with low internet adoption and high illiteracy rates with most of the customers fragmented and out of reach. The result is lack of scale and that affects profitability.E-commerce in Africa could be very profitable; it will just take time and effort. Leaders of the continent must understand that besides launching websites, there are many elements entrepreneurs need to be profitably successful. These include more integration of the disparate African economies; investing in infrastructures like postal system, broadband, and transportation networks; setting up a pan-African system to prosecute fraud and improve business trust in African internet; and most importantly, improving literacy rates. To make the web work for business, African leaders need to focus less on how to improve the number of total domains registered and instead fix the physical business ecosystem which they continue to neglect in order to unleash the wealth-creating powers of the web in Africa.The internet is redesigning commerce and will continue to reshape industrial sectors. Africa cannot afford to avoid participating in the opportunities the internet is enabling through expansion of markets. But entrepreneurs — particularly those in web-based businesses — need to realize the hurdles they’ll have to overcome in order to be both successful and profitable in the continent before they jump in.The development of e-commerce has brought the issues and problems especially in privacy. According to George (2002), privacy risk can affect consumers’ intention to make purchases over the Internet. Once consumers have faced unfavourable experience, then they might reluctant to purchase online again in the future. According to Featherman& Pavlou (2003), privacy risk is about the potential loss of control over the customer personal data information. Lots of unauthorized people used the information without agreement and lead to misuse the information data. A study done by Lenhart (2000), he found out that 8% of Internet users left the online world because of privacy and 54% of people have never gone online because they believed that the Internet is dangerous. Online shoppers are worried about the online payment security, reliability and privacy policy because during the payment process, consumers have to provide their personal and credit card information. Thus, privacy risk refers to the degree in which consumer may lose their personal information when doing an e-commerce transaction (Bhatnagar, Misra, & Rao, 2000). In addition, another researcher defined privacy as the degree to which extend online shopping website is safe and protecting the privacy of consumer data (Kyauk & Chaipoopirutana, 2014). Consumer online intention can increase if customers think the online retailer can protect their personal information securely. Hence, online companies that clearly communicate to consumers on how their private and transaction data are secured are more likely to benefit from increased consumer satisfaction (Ab Hamid et al., 2006).In increasing consumer online intention, consumers perceived greater benefit and less risk. First of all in the dimension of perceived benefit: shopping convenience, product selection, ease of shopping and shopping enjoyment have a positive relationship toward online intention. In fact, marketers have to consider these factors if they would like to increase their sales through online channel. Through online purchasing, customers can access many brands and retailers from everywhere and they can get numerous selections of products available on the Internet.Most of the respondents still perceived that online grocery shopping is risky, this indicate as the quality, privacy, delivery and time risk increase, the online intention of Zimbabwean grocey shoppers is deteriorated. In other words, if customers perceived online grocery shopping to be risky:They will reduce their intention to shop for groceries online. Customers worry that purchase goods online may not be delivered after the payment,Customers worry that their personal information will be leaked out to other companies that can affect their privacy Customers worry that the product isn’t delivered as what they expect. Therefore, firms have to improve their security requirements so that it can mitigate the risks perceived by the consumer with regards to the real and ever increasing threats posed by cybercrime and cyber criminals.CHAPTER 5this study has showed that the visibility of Online Grocery Shopping has indeed a positive impact on the attitude towards using OGS. This implies that the more often potential adopters observe Online Grocery Shopping used by others, the more likely they establish a positive attitude towards using it. Intriguingly, the perceived risk, which has been found to be one of the major obstacles to the adoption of electronic commerce technologies (for example, Ostlund, 1974; Kurnia and Johnston, 1999), and social influence were discovered to have no influence on the attitude. One possible reason for this finding is that Online Grocery Shopping is still a relatively new for the grocery consumers in Zimbabwe. As a result, many consumers do not have a high level understanding of the risks involved and there is no strong social influence to motivate them to use OGS.One of the important implications of this study to practice is that Zimbabwean grocery retailers need to develop online channels to facilitate Online Grocery Shopping in order to tap into the niche consumers who prefer the convenience it offers.In addition, they need to device a better marketing strategy to ensure the visibility of the services provided through Online Grocery Shopping, while at same time, demonstrate the benefits of shopping online. One of the limitations of this study is that since the survey respondents were dominated by Harare respondents, the results of this study could be biased towards the Harare grocery consumers. However, it is expected that Harare grocery consumers would not behave very differently from those in other urban centers in Zimbabwe. Thus, this should not by any means invalidate the generalisability of the findings.Current digital grocery solutions aren’t really innovating much in terms of the grocery shopping experience itself. In order to capture growth, online grocery platforms will need to focus on the following areas:Target Households: Young urbanites, suburban families, older singlesMeet Underserved Needs: Eliminating the drudgery and inconvenience of constant physical shoppingLook for Cultural Hooks: Encourage the ability to order in the home kitchen, as the need arises as well as enable ordering “on demand” out of the home. Also look for ways to facilitate democratic grocery shopping across household members to ensure “agreement” and total household satisfaction.Online grocery shopping ordering potentially reduces the inconvenience of grocery selection by eliminating trips to physical stores. It theoretically enables consumers to shop much more quickly by occasion or for targeted fill-in trips, precisely when a trip to the grocery store is most difficult.Online grocery shoppers today do not appear to enter the experience looking for a radical new way to shop (even if they eventually start shopping differently due to use of online platforms). For consumers whose shopping behavior is full of dull, fill-in and pantry-stocking trips, online grocery has interesting potential to remove drudgery. For others who are not so tired of food shopping, online grocery will most likely not seduce them until super-fast delivery becomes reliable and feasible and ordering processes are more closely harmonized with how households really buy food. By examining food culture more closely, technology-driven online grocery solutions can eventually earn a greater share of shoppers.Online grocery services meet a number of consumer needs including providing products for niche markets or helping the time starved consumer shop for the mundane weekly groceries. By delivering products to consumers’ homes, the homebound aged and handicapped can participate in the shopping experience. Even though there has been a great decline in the number of pure-play online stores, there appears to be a solid market for shopping online. The major business model that is working today requires the support of the established traditional bricks-and-mortar supermarkets. This model is effective as it creates distribution efficiencies and leverages reputation, which is an important consideration for consumers in light of the perishable nature of many grocery products.Traditional supermarkets such as OK, Bon Marche and TM Pick n Pay have a great opportunity to leverage their massive resources, logistics infrastructures, and existing customer base to offer online grocery shopping and in store physical collection and or returns.Most customers are not ready to change their shopping habits, and those that are considering online grocery shopping, prefer to buy from existing stores selling online, which they are familiar with and more reliable.Online shopping has a number of benefits, but physical stores also have strong key advantages over e-commerce—especially for fast-moving consumer goods. Aside from the obvious in-store benefit of fulfilling immediate shopping needs without paying shipping fees, there are powerful sensory experiences—smelling freshly baked bread and seeing and feeling the vibrant color and texture of perfectly ripe strawberries— that is virtually impossible to replicate online. It’s also difficult to match the power of human interaction and the thrill of unplanned discovery that physical stores can provide. Just as important, for many consumers, grocery shopping can be a fun activity that generates positive feelings. In fact, the majority of global respondents (61%) believe going to the grocery store is an enjoyable and engaging experience. A similar percentage (57%) thinks grocery shopping in a retail store is a fun day out for the family.CustomersOur focus turned to how and what online grocery shoppers buy. In general, executives agree that the customer base will widen with the Internet-savvy generation. Busy young professionals who value the opportunity to save time and young mothers seeking to avoid busy supermarkets are the main target group in online groceries. As one young mother puts it, “Online grocery shopping is convenient and it saves time. I do not need to carry heavy bags and I can avoid long lines.”There is little margin for error—shoppers do not forgive mistakes made by online food retailers.Shoppers are happy with the status quo. One major obstacle to online grocery is the simple fact that customers are happy with how they get their groceries now. Seventy-three percent of respondents say they do not buy groceries online because they are satisfied with their usual shopping opportunities and cannot see the added value of online food shopping. In addition, some people don’t decide what to buy until they are on their way home from work or even in the supermarket, so online food purchases are not always a viable option. For many, personal contact is important. While only a few respondents blamed a lack of skills or availability for not shopping online, these could also be underlying factors.Online shoppers are not online food shoppers. Frequent online shoppers are more likely to try buying groceries online than others, with almost one-third of Web grocery shoppers saying they shop online at least once a week for other products. But they do not purchase groceries online as often as other products. Fewer than 10 percent of shoppers say they have bought non-perishable groceries online, and only 2 percent have bought fresh food from a website. And of the 60 percent of shoppers who buy something online at least once a month, only 1 percent log on to buy groceries every month.According to Warschun (2015)the online food market is still in its infancy and a niche segment. One reason is that initial investments are high, with outlays required for infrastructure (mainly new or upgraded operations), software, and marketing, among other things, and potentially higher operating costs. The investments also come with higher risk because of market uncertainties. A well-balanced assortment is vital for sustainable growth as profitability, logistics requirements, and costs differ significantly across product categories (for example, canned food versus fresh food).Pure online grocers find it difficult to enter the market on a broad scale, because of fierce price competition and start-up costs. They are more likely to operate as niche players in large metropolitan areas working with logistics and shopping partners (such as Amazon) to provide home delivery services. They primarily sell small assortments of premium fresh products geared to less price-sensitive shoppers.Traditional grocery retailers will not enter until they have looked at the risks and rewards of being an online-food retail pioneer. Those struggling under competitive pressure are most likely to enter as part of a differentiation strategy, offering an online channel as an additional service. Any competitor that goes big into online retail will entice others to follow. Traditional grocers will need to decide between staying traditional and risk losing long-term market share, or investing now to gain an edge in a promising market.Whether talking to a niche online grocer or a traditional grocer with an online presence, both understand the importance of providing customer-friendly delivery plans. Most online grocery shoppers prefer (and are willing to pay for) home delivery over pickup. But, they are neither willing to stay home all day to wait for their groceries, nor are their homes set up for grocery drop-off, especially fresh goods that require cooling.Further research could be performed on the survey data to discover differences in perception of Online Grocery Shopping by consumers with different genders, age ranges, levels of income or education to obtain a better understanding of the underlying issue. In addition, further study could be carried out by interviewing some grocery consumers with or without experience in Online Grocery Shopping to obtain more in-depth understanding about their perceptions. 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