UNDERSTANDING PERCEPTIONS AND KEY INFLUENCES OF ONLINE …

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UNDERSTANDING PERCEPTIONS AND KEY INFLUENCES OF ONLINE GROCERY SHOPPING TOWARD POTENTIAL CONSUMERS IN GREATER BANGKOK AREA BY MISS HATAIPAT RUHAKARN AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE PROGRAM IN MARKETING (INTERNATIONAL PROGRAM) FACULTY OF COMMERCE AND ACCOUNTANCY THAMMASAT UNIVERSITY ACADEMIC YEAR 2018 COPYRIGHT OF THAMMASAT UNIVERSITY Ref. code: 25616002040142RZN

Transcript of UNDERSTANDING PERCEPTIONS AND KEY INFLUENCES OF ONLINE …

UNDERSTANDING PERCEPTIONS AND KEY

INFLUENCES OF ONLINE GROCERY SHOPPING

TOWARD POTENTIAL CONSUMERS IN GREATER

BANGKOK AREA

BY

MISS HATAIPAT RUHAKARN

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF SCIENCE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2018

COPYRIGHT OF THAMMASAT UNIVERSITY

Ref. code: 25616002040142RZN

UNDERSTANDING PERCEPTIONS AND KEY

INFLUENCES OF ONLINE GROCERY SHOPPING

TOWARD POTENTIAL CONSUMERS IN GREATER

BANGKOK AREA

BY

MISS HATAIPAT RUHAKARN

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF SCIENCE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2018

COPYRIGHT OF THAMMASAT UNIVERSITY

Ref. code: 25616002040142RZN

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Independent Study Title UNDERSTANDING PERCEPTIONS AND

KEY INFLUENCES OF ONLINE GROCERY

SHOPPING TOWARD POTENTIAL

CONSUMERS IN GREATER BANGKOK

AREA

Author Miss Hataipat Ruhakarn

Degree Master of Science Program in Marketing

(International Program)

Major Field/Faculty/University Faculty of Commerce and Accountancy

Thammasat University

Independent Study Advisor Professor Malcolm C. Smith, Ph.D.

Academic Year 2018

ABSTRACT

Digital disruption and the change of consumer behavior has led to online

shopping digitization. With a value of $2.74 billion dollars, the e-commerce market in

Thailand is at its initial stage of development. Tesco Lotus, Big C and Tops Mall are

the leading players in food and drink internet retailing. The total value of food and drink

internet retailing in Thailand was $260 million dollar in 2018. The immaturity of this

market attributes to a lack of understanding of online customers. As a result, this study

aims to understand perceptions and key influences of online grocery shopping toward

potential consumers in the greater Bangkok area. The objectives of the study are 1) to

understand potential customers' perceptions toward online grocery shopping 2) to

determine the factors that affect potential customers’ decision to shop online for

groceries and 3) to evaluate potential customers’ experience when doing a first-time

online grocery shopping trial.

The study used qualitative methods to capture consumer insights. The research

was completed with a total of 15 respondents. In-depth interviews and observations

were done with 15 working women who live in the Greater Bangkok area, aged between

21 to 59, with a household income exceeding 100,000 baht per month.

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Dependent variables that were studied are 1) attitude toward online grocery

shopping and 2) intention to start buying online grocery products. The independent

variables that were studied are 1) perceived enjoyment 2) perceived risks 3) perceived

benefits 4) brand trust 5) previous experiences of online shopping and 5) situational

factors.

The major findings of the study are: 1) customers perceive convenience as the

benefit of an online grocery shopping service while product damage is the perceived

risk that customers are most worried about; 2) customers also perceive that online

grocery shopping is not as enjoyable as visiting the store since they cannot see, touch

and smell the products before buying; 3) retail brands do not affect their attitude toward

online grocery shopping and customers are not loyal to the current retailer where they

usually shop; 4) previous experiences of online shopping affect the attitude of online

grocery shopping; 5) the situation when customers are most likely to think of online

grocery service is when there are prompted by price promotions; and 6) online grocery

websites and applications are not user-friendly.

In conclusion, this study gives an understanding to managers and allows online

grocery companies to develop marketing strategies and communications that can best

capture a new potential customer group.

Keywords: Online grocery shopping, Online grocery shopping trial

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ACKNOWLEDGEMENT

I would like to express my deepest gratitude to my advisor, Prof. Malcolm C.

Smith, Ph.D., for the continuous support, guidance, insightful comments,

understanding, and encouragement throughout my research. The completion of this

independent study could not have been possible without great support from my advisor.

I would also like to thank the 15 participants who were involved in the in-depth

interviews for this research project. Without their passionate participation and input,

the interviews and observations could not have been successfully conducted.

Finally, I would like to thank all my supporters, family and friends for providing

me with unfailing support and continuous encouragement throughout my years of study

and through the process of researching and writing this independent study. All of your

support inspired me and largely contributed to the success of this research.

Miss Hataipat Ruhakarn

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TABLE OF CONTENTS

ACKNOWLEDGEMENT .......................................................................................... (3)

LIST OF FIGURES .................................................................................................... (6)

LIST OF TABLES ...................................................................................................... (7)

CHAPTER 1 .................................................................................................................. 1

1.1 Problem Statement and Research Purpose 1

1.2 Research Objectives 2

CHAPTER 2 .................................................................................................................. 4

2.1 Overview of Global Online Grocery Shopping Service 4

2.2 Overview of Thailand Online Grocery Shopping Service 5

2.3 Previous Research Results 6

CHAPTER 3 ................................................................................................................ 10

3.1 Secondary Research 10

3.2 Primary Research 10

3.2.1 In-depth Interviews ........................................................................... 11

3.2.2 Observation ....................................................................................... 11

3.2.3 Sampling Plan ................................................................................... 11

3.2.4 Data Collection ................................................................................. 12

3.2.5 Data Analysis .................................................................................... 12

3.2.6 Theoretical Framework ..................................................................... 14

3.2.7 Limitations of the Study.................................................................... 14

CHAPTER 4 ................................................................................................................ 16

4.1 In-depth Interviews Results 16

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4.2 In-depth Interviews Key Findings 17

4.3 Observation Key Findings 24

CHAPTER 5 ................................................................................................................ 29

5.1 Conclusions and Managerial Implications 29

5.2 Suggestions for Future Research 30

REFERENCES ............................................................................................................ 32

APPENDICES ............................................................................................................. 35

APPENDIX A IN-DEPTH INTERVIEWS QUESTION GUIDE 36

APPENDIX B THE RESPONDENTS’ PROFILES 39

BIOGRAPHY .............................................................................................................. 40

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LIST OF FIGURES

Figures Page

2.1 Innovation-Decision Process 6

3.1 Research Methodology 10

3.2 Diagram of dependent and independent variables relationship 14

4.1 Tops online homepage 25

4.2 Tops online product categories 26

4.3 Snacks and Desserts subcategories 27

4.4 Search tool results for “marshmallow” 27

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LIST OF TABLES

Tables Page

3.1 Coding table plan 12

3.2 Supercategories table plan 13

4.1 Supercategories of perceived benefits and perceived risks 18

4.2 Frequency of terms used to describe perceived benefits and perceived risks 18

4.3 Frequency of terms used to describe the criteria of selecting the online grocery

retail brands 20

4.4 Supercategories of previous experiences of online shopping 21

4.5 Supercategories of situations in which customers considered shopping for

groceries online 22

4.6 Frequency of terms used to describe the situations in which the respondents

considered shopping for groceries online 23

4.7 Frequency of terms used for promotions that are attractive to the respondents 24

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CHAPTER 1

INTRODUCTION

1.1 Problem Statement and Research Purpose

Thailand’s e-commerce market is growing at a fast pace with an expected

compound annual growth rate of 11% over the next five years. Its revenue is expected

to reach $6 billion by 2023 (Statista Digital Market Outlook - Market Report, 2019).

Yet, online grocery revenue only accounts for 1% of the total e-commerce market. This

is in contrast to the world’s top e-commerce country, where the online grocery market

share in the US is five times greater than Thailand and is expected to reach 10% by

2020 (Online grocery market share in the United States from 2015 to 2020, 2017).

Thailand’s online grocery market is still in its initial development on both retailers’ and

consumers’ sides. Retailers are adapting to the changes in the digital world and have

started to develop online channels for supermarket shopping. Around two million

consumers will start to shop online by 2021 (eCommerce in Thailand , 2018).

As will be seen in the literature review below, there are not many studies about

online grocery shopping available in Thailand. As a result, we do not know Thai

consumers' perceptions and key influences that trigger them to buy or not buy groceries

online. The purpose of this study is to explore female consumers’ perceptions and key

influences toward online grocery shopping in the Greater Bangkok Area.

This study is a contemporary topic in applied marketing. The study will focus

on the subject area of technology. Technology has become a critical factor that has an

impact on business operations (Kokemuller, 2017). Business owners must understand

the effects of technology on firms, culture, society, and customers. Thai consumers’

buying behavior has changed in the past recent years – from offline to more online.

Retailers must adapt to the changing environment and consider integrating offline and

online marketing (Leesa-Nguansuk, 2018). However, there are still limitations and

doubts about online grocery shopping among some Thai consumer groups.

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From a managerial perspective, understanding consumers’ perceptions toward

online grocery shopping and key influences on online grocery shopping will allow

online grocery companies to develop marketing strategies and communications that can

best capture a new potential customer group.

1.2 Research Objectives

1. To understand potential customers' perceptions toward online grocery shopping

1.1. To determine the perceived benefits of online grocery shopping

1.2. To determine the perceived enjoyment during online grocery

shopping process

1.3. To determine the perceived risks of online grocery shopping

1.4. To determine customers' trust in online grocery retailer brands in

Thailand

1.5. To determine positive and negative attitude toward previous

experiences of online shopping

2. To determine the factors that affect potential customers’ decision to shop online

for groceries

2.1. To investigate in which situations potential customers are most

likely to buy groceries online

2.2. To investigate which promotional activity is the most effective

to attract potential customers

3. To evaluate potential customers’ experience when doing the first-time online

grocery shopping trial

3.1. To observe potential customers’ reaction during the online

grocery shopping trial

3.2. To measure potential customers’ satisfaction with the online

grocery shopping trial

As in-depth research and studies on the topic of online grocery shopping in Thai

culture and context are rather limited, the results from this study will allow online

grocery retailers to understand more about their customers’ perception toward online

grocery services as well as the important variables that motivate the customers’ online

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grocery purchasing decision. Moreover, the results from the observation would give

insights to retailers about customers’ satisfaction toward the current services and the

user interface. In summary, study findings will allow online grocery retailers to carve

marketing strategies and communications that can best capture a new potential

customer group.

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CHAPTER 2

REVIEW OF LITERATURE

Technology disruption of virtual reality, augmented reality, artificial

intelligence and the advancement of mobile and social commerce has accelerated e-

commerce services to the next stage (Roger, 2017). According to FATbit (2018),

twenty million American people will adopt online grocery shopping by the end of 2018.

In Asia, 2017 saw a significant growth of 44% in the e-commerce market. As a country,

although Thailand’s online grocery market has grown 104% (Roger, 2017), the number

only accounted for 1% of the total grocery market (Toomgum, 2017). Consumers still

prefer to shop for groceries in-store because they want to touch, smell and see the

products before buying, especially for fresh food and ingredients that can spoil.

However, according to Nielson (2017), 28% of Asian consumers who are currently not

buying groceries online have a potential to buy groceries online in the near future. The

online grocery shopping adoption rate is likely to increase among shoppers who are

under time constraints. This type of people will consider online shopping as it is faster,

easier and more effective than traditional shopping (Nielson, 2015).

2.1 Overview of Global Online Grocery Shopping Service

The global online grocery market value is expected to reach $41 billion dollars

in 2023, a 21% CAGR from $15.9 billion dollar in 2018. The competition among the

online grocery retailers is getting more intense since Amazon acquired Whole Foods in

2017. Amazon’s offering of same-day delivery service to customers had a huge impact

on other online retailers who had to adapt and offer a competitive level of service to

customers. Besides Amazon, key players in the US market are Walmart, Peapod, and

Kroger. In recent years, these major retailers started to offer other services to meet

customers’ needs as much as possible. Some offers include curbside pick-up, driverless

grocery delivery and automated grocery pick-up kiosks (Food and Drink Internet

Retailing in Thailand, 2019).

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Alibaba also introduced a “new retail” concept, Hema in 2018. Hema is an

integrated offline and online grocery shopping store. Customers visiting Hema store

can 1) pay for the products by scanning them at the check-out counters 2) pay by using

the store's app or 3) have the products delivered to them free of charge (Büchenbacher,

2018).

According to Euromonitor, there are currently two business models for online

grocery retailers; multichannel model and online-only model. Multichannel model are

the retailers who also own physical grocery stores while the online-only model does not

bear the cost of setting up a store (Comment: Pure-play vs. multichannel, 2012).

2.2 Overview of Thailand Online Grocery Shopping Service

Online grocery service providers in Thailand can be categorized into four

groups: bricks-and-clicks retailers, pure-play online grocers, marketplaces, and third-

party service providers (Zhu, 2016). Bricks-and-clicks retailers are retailers such as

Tesco Lotus and Central Food Retail who own physical stores. These retailers are now

catching the changes of digital consumers’ behavior. Pure-play online grocers are

startups that use their technological background to operate an online grocery with no

physical stores. Pure-play online grocers are good at online marketing and targeting

but, unlike brick and click retailers, mostly do not have a strong relationship with

suppliers. Pure-play online grocers usually offer limited product ranges. An example of

a pure-play online grocer in Thailand is Delishop. Marketplaces in Thailand are

companies such as JD Central, and Lazada. The marketplaces connect individual sellers

to customers. This type of grocery model offers customers a wide range of products,

prices, and brands. The last group is the third-party service providers such as Honestbee

and HappyFresh. This group enables customers to shop from various supermarkets on

one site.

In this paper, only bricks-and-clicks retailers were focused on as the online

grocery service provider. Currently, there are a total of five bricks-and-clicks retailers

that offer online grocery shopping in Thailand, including Big C online, Makro online,

Tesco Lotus online, Tops online and Villa Market online.

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The online grocery market in Thailand is highly competitive. These five

retailers are considered significant players who own numerous physical stores.

However, several emerging players such as Delishop and Honestbee also offer similar

services as mentioned above. As a result, the retailers are challenged to find the right

model that will enable them to meet consumers' expectations as well as generate enough

profits.

In Thailand, online grocers still provide customers with limited choices of

picking and delivery. Thai customers can only select goods online and have them

delivered to their home while in some countries, other options like online order and

pick-up at store, automatic online subscription, and virtual supermarket are available.

Currently, retailers are attracting customers by offering additional services.

Price promotions are offered daily for specific products. Common additional offers are

free delivery and same-day delivery.

2.3 Previous Research Results

As Rogers (2003) concluded in his book Diffusion of Innovation, customers

usually go through the innovation-decision process before adopting new products or

services. Customers have to consider the uncertainty of the new innovation compared

to the existing choice they are currently adopting. The innovation-decision process

consists of five stages: knowledge, persuasion, decision, implementation, and

confirmation. Figure 2.1 shows the process of innovation-decision.

Figure 2.1 Innovation-Decision Process

The knowledge stage is when customers are exposed to new products or services

and learn how they work. According to the research result, early knowers tend to have

higher education and higher social status when compared to late knowers. Most of the

time, customers, who are aware of the innovation, do not adopt because they do not see

Knowledge Persuasion Decision Implementation Confirmation

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the relevant benefits of the innovation to their life. The persuasion stage is when

customers start seeking information and opinions, especially from friends and family.

In the decision stage, customers must consider and try the products or services first

before deciding whether to adopt or reject. Implementation is when customers start

using the products or services. Last of all, confirmation is the final stage where

customers may reverse their decision.

However, research results from UK studies show that customers do not go

through cognitive elaboration or decision process when they start to shop groceries

online. Hand, Dall'Olmo Riley, Harris, Singh, and Rettie (2009) conducted research on

British shoppers to find out the key factors that trigger customers’ adoption and

discontinuance to buy groceries online. The research was divided into two stages;

qualitative and quantitative research. The results from the qualitative research show that

situational factors seem to have an impact on customers' decision to buy groceries

online. To elaborate, the customers describe that changes in lifestyle such as moving to

a new place and having a baby have led them to start online grocery shopping; they

would discontinue shopping groceries online when the initial trigger disappears. In

quantitative research, the authors conducted a survey of 908 respondents to test 20

situational variables’ influences on consumers' decision to start online grocery

shopping. The research results show that customers are driven to shop for groceries

online because of certain circumstances rather than by decision process. Another study

was conducted in South England by Huang and Oppewal (2006). They surveyed

supermarket shoppers to find out how situational factors affect consumers' decisions to

buy groceries either online or in-store. The results of the study also reveal that

situational factors have significant influences on customers' decision to start online

grocery shopping.

In one study, Chin and Goh (2017) researched how perceptions have impacts

on online grocery shopping behavior. It is found that uncertainty is one of the perceived

risks for the customers to adopt an online grocery service. Consumers' inability to

inspect products by themselves leads to the uncertainty about online shopping,

especially for grocery products. Based on the study, four dimensions of risks were

investigated with the attitude of Malaysian people toward online grocery shopping. The

four risks include financial risk, time risk, privacy risk, and security risk. Financial risk

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is associated with a loss of money when purchasing products or services. The results

from the study show that customers hesitate to buy groceries online because they are

concerned that online grocery products may not be worth their money. People who shop

online want to get the products delivered to their home at the appointed time; they will

feel uncomfortable if the transaction and delivery process take longer than expected.

This can be viewed as time risk. Waiting time can cause dissatisfaction, which will

consequently lead to the discontinuance to shop online next time. Moreover, during

registration, customers are required to fill in personal information. Customers are also

concerned that their information will be used for other marketing purposes or sold to

third parties. Customers’ perceived privacy risk can stop them from doing online

shopping at the process of member registration.

Research on online grocery shopping in Thailand is very limited; only one study

conducted in Thailand was found. Issariyapracha (2016) studied Thai people’s behavior

on online grocery shopping. Seven in-depth interviews and an online survey of 185

respondents were collected. The results from the qualitative survey reveal that

convenience is the key factor that attracts customers to shop online. In the case where

the delivery fee does not exceed the transportation cost, the respondents are likely to

use online services. The customers were divided into three customer segments based

on the results from the quantitative research: Online Grocery Shopper, Potential Online

Grocery Shopper, and Non-Online Grocery Shopper. Online Grocery Shopper is a

person who has purchased grocery products online while Potential Online Grocery

Shopper has never shopped for groceries online before but shows an interest to do so in

the future. Non-Online Grocery Shopper has no interest in online grocery shopping at

all. The results suggest that Online Grocery Shopper and Potential Grocery Shopper

find online grocery service more convenient and time-saving than the traditional

practice. Moreover, Potential Online Grocery shopper group shows high intention to

buy groceries online when prompted with price promotions.

To summarize the literature review, (1) the decision process of online grocery

shopping is different from traditional shopping process; (2) the perceived risks have an

effect on customers’ perception toward online grocery shopping; (3) the research on

online grocery shopping in Thailand is very limited; (4) the research on online grocery

shopping has not yet examined potential customers who have never bought groceries

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online; (5) the research on online grocery shopping has not yet examined users’

experiences of user interfaces. Therefore, the proposed study will provide contributions

in the last three areas.

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CHAPTER 3

RESEARCH METHODOLOGY

A qualitative methodology was used in this research. Observations and in-depth

interviews were done with a total of 15 respondents. The steps are as follow:

Figure 3.1 Research Methodology

3.1 Secondary Research

Secondary research was conducted online to get an overview of both global and

Thai online grocery shopping behavior. Secondary research sources are 1) published

online report related to online grocery shopping 2) statistical data related to online

shopping behavior, trends and opportunities, and 3) articles and studies related to the

area of study.

3.2 Primary Research

Previous research on online grocery shopping has mainly described online

grocery buying behavior, situational factors, triggers, and barriers. Little is known

about insights of what lies beneath these patterns. More research is needed to

understand potential customers' perceptions and motivations toward online grocery

shopping. Therefore, this research used qualitative methods to conduct 15 in-depth

interviews.

Secondary Research

Pre-test In-depth

Interviews

Indepth Interviews

Observations Data Analysis

November – December 2018 January – February 2019 February – March 2019

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3.2.1 In-depth Interviews

The key questions of the in-depth interview focused on 1) the current

behavior of grocery shopping, and 2) the attitudes and intentions to buy online grocery

in the near future. The in-depth interview pretest was done in December 2018 with the

total of three respondents. The key variables used in this study were identified from the

pretest in-depth interviews and the secondary research.

The in-depth interviews were conducted from January to February 2019

with a total of 15 respondents. The respondents passed all of the screening questions

before participating in the in-depth interview (See appendix A: In-depth Interview

Questions Guide - Part I) and were asked the in-depth interview questions found in

Appendix A: In-depth Interview Questions Guide - Part II.

3.2.2 Observation

In addition to the in-depth interviews, the respondents’ reactions during

an online grocery shopping trial were observed. After the in-depth interview process

was completed, the respondents were asked to participate in an experiment of an online

grocery shopping trial. The respondents were observed during the process of member

registration, grocery product selection, the time spent on selecting products, and the

easiness of website or application usage. A few questions were asked after the

completion of the trial process (See appendix A: In-depth Interview Questions Guide -

Part III).

3.2.3 Sampling Plan

The target populations of this study are working women who live in the

Greater Bangkok Area, aged between 21-59. This study focuses only on women

because they are more likely to shop for groceries than men (New Research: Evaluating

Online Grocery Shopping Trends, 2018). The target population’ household income

should exceed 100,000 baht per month. The respondents should use internet more than

three hours per day and buy products or services online at least once a month. According

to Issariyapracha (2016), potential online grocery shoppers in Thailand tend to have a

monthly household income of over 110,000 baht (55%), use internet more than three

hours per day (79%), and often buy products or services online.

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3.2.4 Data Collection

Due to the limitation of time and financial constraints, respondents were

selected through non-probability sampling and acquired through personal connections.

The in-depth interviews were face to face. The average in-depth interview time was 60

minutes. The interviews were standardized as much as possible to ensure that all key

topics were covered. Each interview was recorded and later transcribed.

3.2.5 Data Analysis

Deductive reasoning methods were used in the data analysis. The

procedures for analyzing the collected data in this study followed the guideline from

Ellen and Marcus’s Analyzing Qualitative Data (2003).

1) All interview data was recorded in the form of audiotape and later

transcribed.

2) Key questions to answer were identified in accordance with the research

objectives. A review of the research objectives was conducted to help the researcher

focus on relevant information.

3) The data analysis was focused on questions. The analysis took place

across each respondent’s answers question -by -question in order to see consistencies

and differences between each answer.

4) Data was categorized by the common themes and patterns – of ideas,

concepts, behaviors, interactions, incidents or phrases used – in relation to the research

objectives. Abbreviation was assigned to the unstructured data to label them into

categories and organizations (See Table 3.1).

Table 3.1 Coding table plan

Questions Categories

How was your experience with online

shopping?

Save time (Svt), More choices (MC),

Fun (F), Convenience (Conv), Late

delivery (LD), Bad quality (BQ)

In which situation will you consider to

shop grocery online?

Moving to a new place (Move), Price

promotion (Promo), No car (NC), Flash

sales (FS), Time-strain (TS), Free

delivery (FD)

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5) After the data were categorized, supercategories were assigned as

necessary (See Table 3.2).

Table 3.2 Supercategories table plan

Questions Categories

How was your experience with online

shopping?

Positive Experience (PE)

• Save time (Svt)

• More choices (Moc)

• Fun (F)

• Convenience (Conv)

Negative Experience (NE)

• Late delivery (LD)

• Bad quality (BadQ)

In which situation will you consider to

shop grocery online?

Situational Factor (SF)

• Moving to a new place (Move)

• No car (NC)

• Time constrain (Tcon)

Marketing Mix (MM)

• Price promotion (Promo)

• Flash sales (Flas)

• Free delivery (FreeD)

6) After supercategories were assigned, patterns and connections were

analyzed. Three methods were used to help with the analysis.

• Within category description: in order to analyze data within the

same category, the researcher looked for similarities and

differences of the responses to the same question.

• Relative importance: to measure which category was more

important than the others, the frequency of recurring themes was

counted.

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• Relationships: the researcher looked for connections between two

themes that may create a cause-and-effect relationship or a

sequence of specific actions.

7) The final step was to interpret the data by using themes, patterns, and

connections to explain the findings. The findings should answer all the research

objectives.

3.2.6 Theoretical Framework

Dependent and independent variables in this research are shown in the

figure below.

Figure 3.2 Diagram of dependent and independent variables relationship

3.2.7 Limitations of the Study

Firstly, this study is subjected to time-limitations with only a three-month

timeframe from designing the in-depth interview questions, recruiting respondents,

conducting the interviews and observations, analyzing the data, and writing the report.

Convenience sampling method was used. The respondents were recruited based on

Perceived Benefits

Perceived Risks

Perceived Enjoyment

Brand Trust

Previous Experiences of Online Shopping

Situational Factors

Attitude toward Online Grocery Shopping

Intention to Start Buying Online Grocery Products

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personal connections. The results of the data analysis may not be generalizable to the

entire population.

Secondly, due to the limited time and budget, the sample size was limited

to 15 respondents which may not fully represent the potential customers of online

grocery shopping in the Greater Bangkok Area.

Finally, there is limited research in the topic of online grocery shopping

in Thailand. The researcher only found one paper which mainly explores the existing

channels and customer segments of online grocery shopping. As a result, the secondary

data is obtained mostly from the foreign studies which may have different implication

on Thai customers.

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CHAPTER 4

RESEARCH RESULTS AND DISCUSSION

4.1 In-depth Interviews Results

The in-depth interviews were conducted with a total of 15 working women aged

21 to 59, living in the Greater Bangkok area (Age 21 - 35 = 9, Age 35 - 59 = 6). The

majority of the participants visit a supermarket at least once a month. Mostly, they visit

a store that is located near their homes by driving or taking a taxi, and their average

shopping time is around 30 - 60 minutes. However, the amount of money spent varies

depending on each person. The majority visit the supermarket to buy personal care

products, fresh produce, and fruit and snacks for themselves and their family (See

Appendix B: The respondents’ profiles).

Every respondent has had online shopping experience on several websites such

as Lazada, Shopee, Instagram and Facebook. The respondents who have had positive

experiences said that they bought the specific items online because they could not find

these items in any stores (n = 6). For those who have had negative experiences, it was

mostly because the product they received did not look exactly like the picture in the

advertisement that they saw on the internet.

The majority have never tried to buy groceries online before (n = 12). Female

#6 said, “I never thought of buying groceries online before because I always want to

visit the supermarket. That way I can touch, feel and smell the products before buying

them.” However, some of the respondents once tried to buy groceries online. Female

#3 said that she received a discount voucher from Tesco Lotus online, and she visited

the website. However, she did not proceed to the end of the buying process because she

did not want to fill in the personal information section.

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4.2 In-depth Interviews Key Findings

The key findings from the in-depth interviews will explain the relationships

between the dependent and the independent variables and respond to the objectives 1,

2 and 3 of this study.

Product damage is the main barrier to starting to buy groceries online

(Objectives 1.1 and 1.3)

Both the perceived benefits and the perceived risks have an impact on

positive and negative attitudes toward online grocery shopping. However, the perceived

benefits do not significantly lead to the intention to start buying groceries online

because the respondents are more worried about the perceived risks that can occur

during the process of buying groceries online.

As seen in Table 4.1, the perceived benefits of online grocery shopping are

convenience and better prices. Convenience is presented in two ways: online shopping

is time-saving, and there is no need to carry the heavy items. Female #14 is a working

woman who is very busy as she works full-time and also has to take care of her two

children. She mentioned that, “The only benefit I can think of is that it will save my

time on the weekend. I will have more time to spend with my two boys, clean the house

and cook the food for them.” For the respondents who do not own a car, another benefit

is that they do not have to carry heavy items back home by themselves.

The three main types of perceived risks are product damage, uncertainty of

delivery time and out-of-date stock. In the respondents’ perspective, product damage

can occur because of three reasons: 1) damage occurring during transportation, 2)

products are not fresh/not of good quality, and 3) staff do not carefully select the best

products, or they fail to properly take care of the products during packing and shipping.

The respondents are mostly worried about the damage that occurs during transportation

(See Table 4.2) because they do not know how each retailer operates. They question the

standard of the whole process from selecting the product to packing and delivering it to

their homes. For the respondents who were told that they are able to choose the delivery

date and time, they are still worried about the product damage and do not feel

comfortable with shopping for groceries online.

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Table 4.1 Supercategories of perceived benefits and perceived risks

Question 5

What is your perspective on the benefits and risks of online grocery shopping?

Perceived Benefits:

Convenience (conv)

• Time-saving (ts)

• No need to carry purchased items (car)

Prices (p)

• Cheaper (chp)

• Promotions (pro)

Perceived Risks:

Product damage (pd)

• During transportation (trans)

• Not fresh (nf)

• Unreliable staff (unstf)

Unsure of delivery time (undelt)

Not up-to-date stock (noupstk)

Table 4.2 Frequency of terms used to describe perceived benefits and perceived risks

Terms Used to Describe

Perceived Benefits

Terms Used to Describe

Perceived Risks

N N

Time-saving 16 Not fresh 24

No need to carry purchased items 8 Damage during transportation 22

Cheaper prices 4 Unreliable staff 12

Promotions 4 Uncertain delivery time 6

Not up-to-date stock 3

Shopping at a physical grocery store is more enjoyable than online

grocery shopping (Objective 1.2)

Surprisingly, all of the respondents said that they enjoy in-store grocery

shopping. Female #6 said that she is happy when she sees new products on the

supermarket shelves and smells the new scents of shampoo. Similarly, female #14 said

“I enjoy walking around the supermarket aisles if I am not in a hurry. I like it when I

can spend time to select the brands and sizes. There are so many products I can choose,

and I love to see new up-to-date products on the shelves.”

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Some respondents found it difficult to imagine the enjoyment of online

grocery shopping. Female #5 said, “I have to try online grocery shopping before I can

tell you if it’s going to be enjoyable or not. But, I don’t think it will be enjoyable for

me.” Another interesting response came from female #2, who mentioned that, “If I have

to choose between wasting my time on traveling and walking around the aisles and

wasting my time on scrolling through the websites to find the products that I want, I

would prefer to waste my time on traveling to and walking in the supermarket because

it is much more enjoyable.”

Since all of the respondents had never bought grocery products online

before, it was difficult for them to imagine the enjoyment of the online buying process.

The majority of the respondents felt worried and anxious about online grocery

shopping. Thus, it can be concluded that the respondents do not perceive online grocery

shopping as an enjoyable activity. This lack of perceived enjoyment leads to lower

intention to start buying grocery products online.

No brand loyalty, the best price wins (Objective 1.4)

All of the respondents do not have brand loyalty toward grocery retail

brands. The respondents agreed that they were willing to switch to buying from other

retailers who can offer cheaper prices (See Table 4.3). Female #12 stated that, “Retail

brands do not affect the quality of personal care products, so I don’t mind switching to

buying from retailers who offer lower prices.” Five out of the 15 respondents said that

they prefer to buy from Tesco Lotus online because it offers the cheapest prices.

With regard to the respondents who usually buy fresh produce, it is more

likely that they will be concerned about the quality and freshness of the products.

Female #6, who often cooks at home, mentioned that, “I normally shop at Tesco Lotus

because it’s near my home. But, I won’t continue to buy from Tesco Lotus when it

comes to online. I think I will choose Tops because Tops is a mid-range brand and

offers a better quality of food and vegetables compared to Tesco Lotus.”

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Table 4.3 Frequency of terms used to describe the criteria of selecting the online

grocery retail brands

Terms Used to Describe the Criteria of

Selecting the Online Grocery Retail Brands

N

Offer cheapest prices 31

Good quality products 10

Offer price promotions 7

Delivery fee 5

User-friendly 3

In conclusion, certain retail brands convey a positive attitude toward better

prices and better product quality. However, consumers were shown to have no brand

loyalty when they switch from offline to online shopping. Therefore, brand trust does

not lead to higher intention to start buying grocery products online.

Previous experiences of online shopping affect attitudes toward online

grocery shopping (Objective 1.5)

According to the respondents’ answers about their overall experience with

their previous online shopping, two supercategories are Positive Experiences and

Negative Experiences. Under Positive Experiences, the respondents have had positive

experiences based on three aspects: 1) price, 2) convenience and 3) products. Negative

Experiences consist of four aspects: 1) process, 2) products, 3) service and 4) delivery

(See Table 4.4).

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Table 4.4 Supercategories of previous experiences of online shopping

Question 2

Overall, how was your experience with online shopping? Please explain.

Positive Experiences

Prices (p)

• Cheaper (chp)

Convenience (conv)

• Time-saving (ts)

• More choices (mcs)

Product (prod)

• Good product quality (gpq)

• Difficult-to-find products are

available (difp)

Negative Experiences

Process (proc)

• Complicated (comp)

• A lot of steps to complete (steps)

Products (prod)

• Product received did not meet

expectation (nomeetex)

• Bad quality (bq)

Service (serv)

• Bad after sales-service (bass)

• Could not contact store owner

Late delivery (ld)

The respondents who have had positive online shopping experiences also

perceive online grocery shopping service in a positive way. The respondents who

experienced “cheaper prices” and “time-saving” for their online shopping are likely to

perceive online grocery benefits in the same way. To elaborate, Female #14 bought an

electronic device online at a cheaper price, and she also perceives that an online grocery

service would offer lower prices than an offline one.

Similarly, the respondents who had negative experiences from their

previous online shopping tend to have a higher negative attitude toward online grocery

shopping. The respondents who experienced poor product quality are very concerned

about online grocery product quality. To elaborate, Female#8 experienced bad product

quality from her previous online shopping. She mentioned “I don’t trust the product

that I cannot choose. The last time I bought an ear pod online. It broke after just a few

times of usage. I think I don’t trust anyone to select grocery products for me.”

High chance of starting to buy grocery products online when prompted

with price promotions (Objective 2.1)

The majority have never considered buying grocery products online before.

After asking the respondents to imagine the situation in which they would be most

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likely to buy grocery products online, the results can be categorized into two groups:

promotions and situational factors (See Table 4.5).

One respondent who once wanted to buy an avocado pack online stated that,

“There was one time when I wanted to buy an avocado pack from Tops because my

colleague said it was on sale. I didn’t have time to go to Tops, so I wanted to buy it

online. But, I just didn’t know how to, so I asked my daughter to buy it online for me.”

Table 4.5 Supercategories of situations in which customers considered shopping for

groceries online

Question 4

Have you ever considered shopping for groceries online? Why/Why not? In which

situation?

Promotions (promo)

• Price promotion (pp)

• Discount voucher (distv)

• Free delivery (freed)

Situational factors (sf)

• Busy (bus)

• Lazy (laz)

• No car (nc)

• Plastic bag-free day (pbf)

• Influence from other people (inf)

• Product not available on shelf (pdns)

• Moved to a new place far from a supermarket (move)

Table 4.6 shows the frequency of terms used to describe the situations in

which the respondents considered shopping for groceries online. The respondents are

sensitive to price and are willing to buy online grocery products at a lower price.

However, one respondent said that, “Free delivery is a good deal, but if the online price

is the same as the offline, then I’d rather go to the store.”

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Table 4.6 Frequency of terms used to describe the situations in which the respondents

considered shopping for groceries online

Situational factors are different from the previous research studies

Apart from the above results, this research study also discovered that the

situational factors that Thai respondents mentioned are quite different from those found

in the research conducted by Hand, Dall'Olmo Riley, Harris, Singh, and Rettie (2009)

in England. The British will think of an online grocery service in the situations that are

more intense or serious, such as when they have a baby or a health problem that makes

it difficult for them to travel to the supermarket. In contrast, the situational factors in

this study are of a low level of seriousness such as being busy, lazy or influenced by

other people. Female #9 stated that, “My boyfriend sometimes buys grocery products

online and he suggested that I do so as well. Every time he mentions an online grocery

service, I tell myself that I will try it next time.”

Buy 1, get 1 free promotions are what the majority want (Objective 2.2)

The majority of the respondents are attracted to “buy 1, get 1 free”

promotions. One respondent said that, “I like ‘buy 1, get 1 free’ the most because it’s a

100% discount.” However, one of the respondents who are not attracted to “buy 1, get

1 free” promotions said that, “Sometimes I don’t want to get two bottles of shampoo

Terms Used to Describe the Situations

in which Respondents Considered Shopping for

Groceries Online

N

Price promotion 17

Busy 9

Free delivery 9

No car 4

Influence from other people 4

Product not available on shelf 3

Lazy 2

Moved to new place far from supermarkets 2

Discount voucher 1

Plastic bag-free day 1

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because I normally change my shampoo brand every time. I think a discount is more

attractive.” (See Table 4.7).

Table 4.7 Frequency of terms used for promotions that are attractive to the

respondents

Terms Used for Promotions that are

Attractive to the Respondents

N

Buy 1, get 1 free 17

Discount 13

Free delivery 10

Membership rewards 2

4.3 Observation Key Findings

A total of 15 respondents were willing to participate in the online grocery

shopping trial. Ten participants chose Tops online, while the other five participants

chose Tesco Lotus online. The participants were required to complete the membership

registration before starting the online grocery shopping trial. The average registration

time was approximately 7 minutes, and the average shopping trial time was

approximately 20 minutes.

Customers feel uneasy when required to register for membership on the

selected online grocery shopping website/application (Objective 3.1)

The majority of the respondents hesitated and complained after realizing

that they must complete the membership registration at the beginning. Some of the

respondents mentioned that they usually skip registration on any sites that they visit.

Furthermore, several respondents said that they do not want to provide personal

information because of privacy concerns. However, after the respondents completed

the registration section, most of them were quite satisfied with the process. Female #13

stated that, “I thought the registration would take more time than this. I think it’s not

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too long for me, and the information they need us to fill in is all necessary for the

delivery service.”

Customers do not know how to find the products that they want (Objective

3.1)

• Website/Mobile Interface Problems

The participants who chose Tops online often started by scrolling on the home

page (See Figure 4.1). This behavior is similar to their in-store shopping habits in which

they described that they enjoyed walking from aisle to aisle. However, the products that

are shown on the Tops online homepage are random products from all categories. As a

result, the participants could not find the products that they were looking for. Even

though they could go to each product category or use the search tool, they were not

aware of these options. However, they started to visit each category when they were

told about the product category function.

Figure 4.1 Tops online homepage

• Word Choice Problems

When the participants were looking for a specific product, they were confused

regarding which categories the product fell into. For example, a participant who

shopped on the Tops mobile application was looking for a yogurt cup. However, she

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did not know whether a yogurt cup is under the “Snacks & Desserts” or the “Beverages”

category (See Figure 4.2).

Figure 4.2 Tops online product categories

Another participant was looking for a pack of marshmallows. She knew that

marshmallows are under the “Snacks & Desserts” category. However, there are

subcategories under “Snacks & Desserts”, and she was confused regarding which one

she should select (See Figure 4.3).

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Figure 4.3 Snacks and Desserts subcategories

• Search Tool Problems

The participant who was looking for a pack of marshmallows decided to use the

search tool to find the product that she wanted. However, after using the search tool to

find a marshmallow pack, the results also showed an irrelevant product. The irrelevant

product was the hair dye in a marshmallow color. This happened on both the Tops

online and Tesco Lotus online websites. (See Figure 4.4).

Figure 4.4 Search tool results for “marshmallow”

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Online grocery websites and applications are not user-friendly (Objective

3.1)

The participants who chose to shop with Tesco Lotus online on the mobile

application found out that the mobile application is used for membership rewards and

promotions only. Thus, they had to switch from the mobile application to the website.

This caused a great deal of frustration for all of the participants who wanted to shop via

their smartphone. Therefore, this participant group spent more time than the average

shopping time of the participants who chose Tops online.

Customers do not want to pay the delivery fee (Objective 3.1)

The majority of the participants spent less than 800 baht; therefore, the

delivery fee was charged. The delivery fee is approximately 50 - 60 baht. The

participants who realized that they had to pay this delivery fee hesitated and did not

complete the online grocery shopping trial process. One participant said, “Do I have to

really buy this from you now? I don’t want to pay the 60-baht fee.” It can be concluded

that the delivery fee is one of the major barriers that prevents customers from

completing online grocery shopping process.

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CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions and Managerial Implications

According to the qualitative research, the majority of the customers perceive

that it is riskier to buy grocery products online. As a result, most of them still prefer to

visit the physical grocery stores. Moreover, online grocery websites and applications

are not user-friendly. Most of the participants complained about the complicated

process to find the products that they wanted. However, due to the fact that the

customers are not loyal to the current brand that they buy, there is an opportunity for

retailers to convince the customers to shop online on their websites.

The following are the managerial implications:

• Tops online and Tesco Lotus online are the top two brands that the

customers chose for the online grocery shopping trial. Customers who are

concerned about product quality are more likely to choose Tops online,

whereas the customers who are price sensitive are more likely to choose

Tesco Lotus online.

• Customers do not want to pay the delivery fee. Retailers should focus on the

high-spending customers as the potential customers of online grocery

services. The participants who finished the process of the online grocery

shopping trial spent more than 800 baht; therefore, they did not have to pay

for the delivery fee.

• Some of the participants mentioned that they wanted to choose Gourmet

Market, one of the high-end supermarkets in Thailand, for the online grocery

shopping trial. However, Gourmet Market does not operate its own online

grocery service. Nevertheless, customers can still buy these grocery

products via the third-party service providers such as Honestbee and

HappyFresh.

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• The price promotions that retailers should employ to attract new online

customers are “Buy 1, get 1 free” and “Discount promotions”. Customers’

preferences vary for each person. However, the research revealed that there

is a higher chance that customers will open an online website or application

when the retailers employ direct marketing activities such as coupons,

mobile messages, and e-mail.

5.2 Suggestions for Future Research

This study is an initial research study that aimed to explore and understand the

shopping habits and perspectives of potential female customers of online grocery

services in the Greater Bangkok Area. The following suggestions will enhance and

broaden the future studies.

• Another qualitative study should be conducted in order to better understand

the characteristics of the potential customers and their needs.

• Quantitative research of the potential online grocery shopping customers

should be employed to accurately measure the level of intention to start

buying online grocery products among different independent variables.

• The future studies should expand the target sampling from only the Greater

Bangkok Area to the other major cities in Thailand where people have

adopted and are familiar with online shopping.

• Regarding the intention to start shopping for grocery products online,

another important factor is a user-friendly interface. The investigation of

customer satisfaction with the current interface (websites and applications)

should be employed to assist retailers with the development of a better

interface for customers.

Retailers should study the advantages and disadvantages of providing and not

providing their own online service. The initial research showed that several of the

customers preferred to buy from Gourmet Market online, but since Gourmet Market

does not provide its own online service, customers switched to Tops online. Retailers

should therefore study the customer behaviors because shopping through third parties

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can cause difficulties. As a result, customers might switch to other retailers or may not

shop online at all.

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APPENDICES

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APPENDIX A

IN-DEPTH INTERVIEWS QUESTION GUIDE

Part I General Information (Screening Questions)

Name: _________________________________________ Age: _______________

Gender: _________________ Occupation: _______________________________

Current Address (city): _______________________________________________

Number of Adult in Household: ________________________________________

Number of Children in Household: _____________________________________

Household Income (Baht/month):

1) Less than 35,000 2) 35,001 – 50,000 3) 50,001 – 100,000

4) 100,000 – 150,000 5) Above 150,001 6) Refuse to answer

Highest Education Level:

1) lower than Bachelor’s degree 2) Bachelor’s degree

3) Master’s degree 4) Higher than Master’s degree

How often do you buy products/services online?

1) Once a week 2) 2 – 3 times a month

3) Once a month 4) Less than once a month

Have you ever purchase online grocery product before?

1) Yes 2) No

- End of Part One -

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Part II In-depth Interview Question Guide Lists (Objective 1 & 2)

1) What do you think about traditional grocery shopping? Where/When was the

last time you shopped for grocery? How did you travel to the shopping place?

How much time did you spend shopping in the supermarket? What do you

usually buy? What is your average spending per time?

2) Overall, how was your experience with online shopping? Please explain

3) Why have you never tried to buy grocery online before?

4) Have you ever considered to shop grocery online? Why/Why not? In which

situation?

5) What is your perspective on benefits and risks of online grocery shopping?

6) Do you think online grocery shopping is enjoyable? Why/why not?

7) Have you ever seen a promotional advertisement from online grocery

shopping service providers? Are you attracted to the promotion?

8) If you have to buy grocery online, will you buy from the same retailer that you

currently shop grocery for? Why/why not?

9) Which of the following retailers that you would likely buy grocery online

from?

10) What kind of grocery products will you consider to buy online? Why?

- End of Part Two –

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Part III Question Guide after Online Grocery Shopping Trial (Objective 3)

1) How was your experience after first time online grocery shopping?

2) Is it easy or difficult for you to find products you want on the

website/application?

3) How are you satisfied with the service?

4) How likely are you going to repeat the purchase of online grocery?

- End of Part Three -

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APPENDIX B

THE RESPONDENTS’ PROFILES

No. Age Occupation Household

Income

Education

Level

Online Purchasing

Frequency

Female #1 28 Private Company 100,000+ Master 2 times/month

Female #2 29 Freelance 100,000+ Master 1 time/month

Female #3 26 Private Company 100,000+ Master 1 time/month

Female #4 27 Private Company 100,000+ Master 1 time/month

Female #5 27 Private Company 100,000+ Master 1 time/month

Female #6 28 Private Company 100,000+ Master 1 time/month

Female #7 57 Private Company 100,000+ Bachelor 1 time/month

Female #8 56 Business Owner 100,000+ Master 1 time/month

Female #9 35 Private Company 100,000+ Bachelor 1 time/month

Female #10 28 Private Company 100,000+ Master 1 time/month

Female #11 40 Private Company 100,000+ Bachelor 1 time/month

Female #12 38 Business Owner 100,000+ Master 1 time/month

Female #13 33 Private Company 100,000+ Bachelor 1 time/month

Female #14 45 Private Company 100,000+ Bachelor 1 time/month

Female #15 52 Business Owner 100,000+ Bachelor 1 time/month

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BIOGRAPHY

Name Ms. Hataipat Ruhakarn

Date of Birth July 10, 1993

Educational Attainment

2011: Bachelor of Arts, English major,

Entrepreneurship minor, Chulalongkorn University

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