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Online Grocery Shopping in the Montreal Area MRKT-451: Marketing Research Professor Steven Letovsky 7 Apr 2010 Jade Arnaout - 260320434 Manar Ghamian - 260272911 John Lapsley - 260299791 Viktor Tsankov - 260305997

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Page 1: MRKT 451 - Final Report1

Online Grocery Shopping in the Montreal Area

MRKT-451: Marketing Research

Professor Steven Letovsky

7 Apr 2010

Jade Arnaout - 260320434

Manar Ghamian - 260272911

John Lapsley - 260299791

Viktor Tsankov - 260305997

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Table of Contents

Executive Summary

1. Objectives & Methodology 1

1.1. Objectives 1

1.2. Methodology 3

1.2.1. Sampling 3

1.2.2. Bias and Data Collection Errors 3

1.2.3. Research Ethics 4

1.2.4. Nonresponse Error 5

1.3. Proposed Analysis Procedures 5

2. Detailed Findings 6

2.1. Demographics 6

2.1.1. Screening Questions 6

2.1.2. Demographics of Respondents 6

2.1.3. Limitations of the findings 7

2.2. Questionnaire Data 7

2.2.1. Cooking Habits 7

2.2.2. Average and ideal grocery expenditures 8

2.2.3. Typical grocery habits 10

2.2.4. General online habits 11

2.2.5. Online purchasing habits 12

2.2.6. Student comfort with groceries 13

2.2.7. Service parameters 14

2.2.7.1. Payment 14

2.2.7.2. Delivery Times 16

2.2.7.3. Price Importance 16

Conclusion 18

Recommendations 18

Appendix A: Questionnaire

Appendix B: SPSS Cross-tabulations

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Executive Summary

This report contains the findings of a three-month investigation into the viability

of an online grocery delivery service targeted at students in the Montreal area. This

research project consisted of an online questionnaire distributed to 184 students and while

the non-probability sample suffers from some bias and skew inaccuracies, the findings

within provide a sturdy framework for future, more focused and profit-centric research

into such a service. The key findings of our report are as follows:

• An online grocery shopping service must emphasize above all convenience,

agreeable pricing, the security of the online transactions and the freshness of all

perishable vegetables delivered.

• Students would prefer a specific delivery time from such a service and would

largely prefer deliveries to be made in 1-2 hours. The absolute outside limit of

acceptable delivery times is one day.

• Montreal students are generally satisfied with their current grocery expenditures

and response to an online grocery delivery service that increased student costs

was overwhelmingly negative.

• The importance of guaranteed freshness cannot be overestimated; students were

most reluctant to purchase online those groceries whose quality is considered to

be dependent on their freshness.

These findings, while suffering from the sampling bias that comes from a

convenience sampling, are backed by a considerable majority among all respondents and

thus provide firm guidelines for any interested major stakeholder in the Montreal grocery

industry to conduct more specific future research according to their individual interests.

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1.1 Objectives

Online Grocery Shopping services, like many online services, save the consumer

transportation time and allow consumers to quickly compare prices and search a broader array of

goods. As a time-constrained, tech-savvy and cost-sensitive market segment with generally

limited access to transportation, students are the ideal target market for a properly-constructed

OGS service. The purpose of this research project is to determine what constitutes a properly-

constructed OGS service targeting university students and to quantify the potential profitability

of this opportunity. The specific construct we will measure is the interest in an OGS service,

which is determined in terms of the potential amount students would pay for such a service.

Because the grocery market already has razor-thin profit margins, a very high action standard

will be required for the recommendations to be properly implemented for an OGS service. In

other words, we will not recommend the implementation of an OGS service unless such a

service’s conservatively projected monthly cost-revenue ratio is 2:3.

Our research problem is the following question: “What constitutes a properly-

constructed online grocery shopping service and what is its potential profitability among

students in the Greater Montreal Area?”

There is little secondary data about the OGS market in Canada, and Montreal is no

exception. Therefore, we will require extensive primary research to compensate for this

information gap.

The primary objective of our research will be to quantify the demand that exists for a

student-targeted OGS service as well as to forecast the potential sales and revenues expected out

of this service. More specifically, we want to determine the price students would pay for the

suggested service.

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This would require knowing how willing students would be to order their groceries

online given a varying set of features in the OGS service. Specific metrics to be quantified would

include current monthly grocery expenditure and what percentage of these groceries a student

would purchase online given a varying set of features.

This primary objective requires us to answer the following four secondary objectives:

1- Identify and prioritize the key decision criteria that make shopping online attractive

to students, and whether these can be replicated for grocery shopping specifically

a. Identify the driving forces behind the current average student’s inclination to

purchase other goods online

b. Determine which facets of the grocery-shopping experience would need to be

accurately replicated in order for a student to feel comfortable shopping for

groceries online.

2- Determine whether any student sub-groups are more inclined to be interested in OGS

a. These sub-groups could be stratified along a specific demographic such as the

students’ neighbourhood of residence which could influence their online

grocery shopping trends because of different schedules, diverse income

ranges, etc...

3- Quantify the costs of implementing services that students would seriously consider

adopting (primarily through secondary research). This information is necessary to

quantify the overall profitability of the suggested OGS service.

By achieving these secondary objectives, we aim to determine how best an online grocery

service could add value for student customers specifically and which features (superior prices,

convenience, broader assortments, etc.) a service we could most effectively emphasize.

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1.2 Methodology

1.2.1 Sampling

Our research is aimed at assessing the responsiveness of students to online grocery

shopping in The Greater Montreal Area. We want to understand what students can gain out of

purchasing groceries online and how they would like this service to be conceived to best cater

their needs. We decided to adopt a non-probability sample in order to reduce the cost of

sampling. While this is not the most accurate method of sampling, as students it best meets our

time and cost constraints. We conducted an online survey among Montreal university students

who attend Concordia, the University of Montreal, McGill, or UQAM. Our goal is to collect the

quantitative data we need for our analysis. This survey will help us gain a real-world

understanding of what students think of online grocery shopping.

We insisted on pre-testing the questionnaire before launching it on Facebook, which

represents the research project’s sample frame to determine the qualified respondents. The

students who took the survey are people we personally were invited through Facebook to an

event that contained a link to complete the questionnaire. The group specifies our three screening

questions which consist in that the participants have to reside in Montreal and be between the

ages of 18 and 24, they have to be enrolled at a post-secondary academic institution, and they

also have to be living on their own i.e. away from their parents.

The criteria that were just mentioned defined the three screening questions which gives a

concrete idea of who the “target market” or “universe” is. Our sample unit is a single student

who does not live with his or her parents and who shops for groceries on a regular basis (at least

once a month).

1.2.2 Bias and Data Collection Errors

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The participants were informed of the nature of the survey before they clicked on the link

and were assured of anonymity and confidentiality. Using this method, a random sample could

not be gained, and bias will exist based on those willing to take the survey online, as well as

those that are acquainted with the group members through Facebook. We have a sample size of

184 respondents which we believe compensates for the fact that it is a non-random sample. The

large number of respondents did, however, lead to diverse responses which we feel are

representative of typical students residing in the Greater Montreal Area.

Not a single face-to-face interview was conducted and all the questionnaires were answered

online. Therefore, neither intentional nor unintentional fieldwork errors apply to the research

problem at hand.

Unintentional data collection errors include misunderstanding, guessing, attention loss,

distractions, and fatigue. All completed questionnaires were screened for errors. The

nonresponse errors are restricted to some item omissions which had to be corrected for the

questionnaires to become “complete.” For instance, for the question about the time needed to get

to the closest grocery store, we had to compute an average for respondents who gave us amounts

such as “5 to 10 minutes”—in such cases, we removed the words and computed an average [i.e.

in this case, 7.5 minutes]. We also ensured that all our results are ethical visuals. We double-

checked all labels, numbers, and visual shapes and made sure all parts of the scales are

represented.

1.2.3 Research Ethics

The respondents participated under normal contact efforts, i.e. no one was pressured or

forced to participate. We used anonymity and confidentiality in order to minimize intentional

respondent error. We employed follow-up mailing, specifically Facebook messaging, as a tactic

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to increase the response rate. We sent two follow-up messages after our initial Facebook event

invitation to our online questionnaire. We adopted an oversampling strategy i.e. we invited a

large amoung of people to compensate for the natural bias due to nonprobability sampling.

1.2.4 Nonresponse Error

The nonresponse error is measured by the calculation of the response rate. Let us

compute it by dividing the number of respondents by all the people who were invited to take part

in our questionnaire. We have 184 respondents out of 906 people that were originally invited.

This corresponds to a response rate of 20.31% (184/906*100=0.20309051). The relatively high

number of respondents which corresponds to the sample size allows us to control sampling error.

1.3 Proposed Analysis Procedures

Based on the data we acquired, we will use the statistical software SPSS to compute the

following input from our surveys and secondary research:

"' The average monthly student expenditure on groceries

#' Conservative estimates of the costs required for OGS services with varying

features

$' The average student willingness to purchase all or some groceries online given the

presence of each set of features

o This average as well as the previous cost estimates will be quantified for a

variety of theoretical OGS services

Following this analysis we hope to be able to determine the potential profitability of each

possible OGS service and, if any meet our action standards of the 2:3 cost-revenue ratio, suggest

or recommendations and advise the implementation of one or several services.

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2. Detailed Findings

2.1. Demographic

2.1.1 Screening Questions

The screening questions on our questionnaire ensured that respondents were a) university

students b) aged 18-25 and c) not living with their parents. The purpose of question c) was to

ensure that we spoke with students more likely to be responsible for their own food purchases

and preparation.

2.1.2 Demographics of Respondents

The 184 students surveyed demonstrate

the following demographic characteristics:

Gender: 67% of respondents are female

and 33% of respondents are male. [Fig. 2.1.2a]

Age: 60% of respondents are between 18

and 20 years, 37% of respondents are between 21

and 23 years, and 3% of respondents are between

24 and 25 years. [Fig. 2.1.2b]

Location: 49% of respondents reside in

downtown Montreal, 17% of respondents reside

in the Plateau, 10% reside in the Cote-des-

Neiges/Notre-Dame-de-Grace area, and the

remaining 24% of respondents come from

Montreal's remaining various boroughs. [Fig.

2.1.2c]

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Occupation: 93% of respondents are full-

time students [Fig. 2.1.2d] and 7% are part-time

students. 61% of respondents are unemployed. [Fig.

2.1.2e]

2.1.2 Limitations of the findings

Since ours was a convenience sampling, it is

not surprising that the demographics of the

respondents are not as evenly distributed across age

and gender as a probability sample would yield.

However, given the high response rate from various

boroughs across Montreal and the high

concentration of full-time students among the

respondents and given that a majority of university

students are female (represented at McGill, for

instance, by an average 60-40 split), these findings

provide a very strong exploratory foundation for

further, more concrete and company-specific

research into the viability of an OGS targeted at

students.

2.2 Questionnaire Data

2.2.1. Cooking Habits [Fig. 2.2.1]

Key insight: 85% of students responded that they

"sometimes" "often" or "always" cook their own

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food, demonstrating that a majority of our

respondents prepare their own meals and implying

that the respondents would therefore be

considerably interested in purchasing groceries.

The purpose of this question was to merely

verify that grocery shopping is an important part of

the student life—if a majority of students had

answered “rarely”, for instance, we would have

discovered that students largely do not purchase

food items and therefore that an online grocery

shopping service would be better targeted at a

different market.

2.2.2. Average and ideal grocery expenditures

Key insight: Most students grocery shop 3-

5 times per month and over 70% of students are

satisfied with the current monthly amount they

spend on groceries [within $50 brackets], meaning

that an OGS that raised student grocery shopping

costs too significantly would meet considerable

resistance.

Question 2 [Fig. 2.2.2a] demonstrates simply the amount of trips that students make per

month to the grocery store--by our findings, the majority [47%] shop 3-5 times a month,

followed by 1-2 times [34%] and more than 5 times [19%].!

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The responses to Question 3 [Fig. 2.2.2b]

demonstrate that the majority of students surveyed

[28%] spend between $150.01 and $200 per month

on groceries. Question 4 [Fig. 2.2.2c], which asks

for students' ideal budget, shows that the majority

of respondents [33%] would prefer monthly

grocery expenditure between $100.01 and $150.

Taken separately, this appears to demonstrate that a

majority of students are spending more than their

ideal budget--however, cross-tabulating Questions

3 and 4 [see Appendix B] demonstrates that the

majority of students are in fact within their ideal budget range. Only 27.8% in total chose an

ideal bracket that was below the amount they are currently spending. This overwhelming

satisfaction with current prices demonstrates that an online grocery system that significantly

raised the costs of grocery shopping would meet considerable resistance.

A final point of interest in Question 4 comes from filtering it by location, which

demonstrates that a pronounced majority of students located in the Plateau Mont-Royal spend

$150.01-200.00 per month but would prefer to spend $100.01-$150.00. This suggests that an

OGS that actually saved students a significant amount of money might be most successful in the

Plateau area.!

The limitations of Questions 3 and 4 come from their wide brackets--it is only safe to

conclude that students are satisfied with their grocery expenditures within a fifty-dollar range,

which on a student budget is somewhat significant. Further research might fine-tune these

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brackets or merely ask students to provide dollar amounts to determine on average how far

students are from their ideal monthly grocery budget and how much "wiggle room" an OGS

would have to apply additional fees without removing customer value.

2.2.3 Typical grocery habits

Key Insight: First, the majority of students shop at grocery stores where an online option

is not currently available, suggesting that these existing stores could leverage student loyalty into

creating a successful student-targeted OGS. Second, the overwhelming majority of students

travel an average of 8.78 minutes by foot to their grocery store, suggesting that an OGS would

save the average student very little travel time and to truly improve convenience, the OGS would

have to expedite the actual shopping experience.

The responses to Question 5 [Fig. 2.2.3a]

demonstrate that among respondents the most

popular grocery stores are, in order, Provigo,

Metro, IGA, and Marche PA. Of these four, PA

alone offers online delivery services (though

Provigo and Metro allow shoppers to choose their

groceries in-store for home delivery). Since only 5% of respondents shopped mainly at PA

compared with 32% at Provigo and 26% at Metro,

either of these two grocery stores might have more

success in implementing an online grocery delivery

system for their current brand-loyal student market

than PA has.

The purposes of Questions 6 [Fig 2.2.3b]

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and Question 7 [which asks for the amount of time it takes a student to travel one way to this

grocery store] were to determine how much effort an OGS would save students in terms of actual

transit between their homes and the grocery stores, and the results were underwhelming. The

average student trip to the grocery store lasts 8.78 minutes, and 74.1% of respondents travel less

than 10 minutes to the grocery store. The transit time savings of an OGS would therefore be on

average less than 20 minutes for a student, and thus in order to convincingly emphasize its

convenience, an OGS would need to significantly expedite the actual process of choosing

groceries.

Cross-tabulating Question 7 with Question 3 [see Appendix B] demonstrates that the

majority of students in all three categories of shopping frequency travel less than 5 minutes to the

grocery store, however, this majority is significantly higher in students who make 5 trips a month

or more [62.9%] than in students who travel 3-5 times per month [42.5%] or in students who

travel less than 3 times a month [47.6%].

2.2.4 General online habits

Key insight: Almost all [98%] of the

students surveyed are comfortable, habitual Internet

users.

The purpose of these questions was to verify

our respondents’ familiarity with the Internet, and

we determined that 99% of students have home

access to the Internet. 98.7% of students with

home-access and 98% of all students surveyed use

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the Internet every day. This overwhelming (and unsurprising) degree of familiarity with the

Internet demonstrates that an OGS would not meet student resistance simply because it was

online.

2.2.5 Online purchasing habits

Key insight: 85% of students have made

online purchases in the past year and a majority

chose to do so for the convenience and price of the

item. Of the 15% who did not, security of billing

information was the primary concern,

demonstrating that convenience, price, and security

would be pillars of a successful OGS.

Questions 10, 11, and 12 [Figs. 2.2.5a, b,

and c, respectively] were designed to establish a

pattern of student Internet purchases. Question 10

demonstrates that of the goods purchased online,

the most common were travel and vacation

transactions [49%], followed by books [42%],

electronics [32%], and clothing [28%]. These

products are a far cry from edible goods—indeed, only 8% of respondents checked off non-

grocery food and drink and 4% checked off groceries, demonstrating that while students are

largely familiar and comfortable with online purchases [only 15% had not made any online

purchases in the past year] very few are familiar with purchasing food online.

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The responses to Question 11 demonstrate that agreeable price and convenience are the

primary drivers of online purchases. Cross-tabulating Question 12 with Question 10

demonstrates that of the 15% of students who did not

make any online purchases in the past year, 46.4%

did not do so because they were uncomfortable

submitting personal billing information over the

Internet. These findings show that a successful online

grocery shopping system will need to emphasize

convenience, pricing, and the security of its

transactions.

2.2.6. Student comfort with groceries

Key insight: Students are largely

uncomfortable purchasing perishable items

online, and since an OGS that relied on

purchases of non-perishables would be

unlikely to succeed, a successful OGS needs

to both emphasize and guarantee the

freshness of its deliveries.

The bar chart in Figure 2.2.6 shows a sharp trend of student discomfort with purchasing

grocery items whose quality is generally associated with their freshness—specifically beef,

bread, chicken, dairy items, deli items, fruits, pork, seafood, and vegetables. Students are, on the

other hand, comfortable with purchasing most non-perishables, but given the busy lives led by

most students, it seems unlikely that an OGS would succeed if students used the OGS to

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purchase non-perishables and walked to the

store to purchase perishables rather than make

one simple transaction. This means that a

successful OGS will need to both emphasize

and guarantee the freshness of home-

delivered perishables.

Students surveyed also show

discomfort with purchasing medicine

online—however, since many standalone

pharmacies exist to dissociate medication and

groceries in the customer’s mind and since

purchasing prescription medication online

would present an entirely different set of

challenges for both parties in the transaction,

we do not feel that the lack of ability to

purchase medication through an OGS would

hinder the system itself.

2.2.7 Service Parameters

2.2.7.1 Payment

The majority of students demonstrated that they would be willing to pay a delivery fee of

up to $5.00. However, 46% of students would be “somewhat likely” or “very likely” to purchase

groceries online if there were an annual membership fee but not individual delivery fees. Of the

“very likely” group [representing 14% of the sample], a majority of respondents [34.6%] would

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pay up to $30.00 for membership and 30.8% would pay up to $40.00 Of the larger “somewhat

likely” group [32% of respondents], 32.2% would pay up to $20.00 and 25.4% would pay up to

$30.00.

Both men and women responded with the same distribution to the above options except

when asked how likely they would be to purchase groceries online if there was a delivery fee. A

majority of men would be “likely” to do so while a majority of women felt “neutral”.

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2.2.7.2 Delivery Times

Asked for the maximum delivery time they

would accept, a majority of students preferred 1-2

hour delivery. 26% of students would not accept

longer than an hour and 18% of students would not

accept longer than two hours. Interestingly enough,

however, the third greatest response group was to

“N/A – I am not usually in a rush” which 16% of

respondents selected.

In Question 25, however, 54% of respondents

indicated that same-day delivery would be a very

important factor in their decision to purchase

groceries online. Given that the current home-

delivery options offered by Provigo and Metro

guarantee same-day delivery, this appears to be

the absolute outside limit of delivery times

accepted by Montreal consumers in general.

2.2.7.3 Price Importance

Respondents were asked a series of questions regarding the pricing of online groceries,

and unsurprisingly, online grocery prices would need to be at par with or below current grocery

store prices. As evidenced by the below bar graphs, most students were “very unlikely” to use an

OGS if prices were higher, “neutral” if the prices were at par, and “likely” to use an OGS if

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prices were lower than in-store prices. These distributions were identical between males and

females.

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3. Conclusions

The majority of students surveyed cook, use the internet, and shop online. The cooking

means that they grocery shop fairly often, so along with their comfort with the internet it should

make sense that they would want to shop online for groceries. This is, however, not the case.

Perhaps the largest problem is an indication of quality of freshness. Price, security, and

convenience are all important aspects that were discussed in the detailed findings, but by

themselves they are not indicative of unwillingness to shop for groceries online, just for an

unwillingness to shop from a specific store, or specific set of circumstances. The freshness of

produce meanwhile is indicative of an issue with online grocery shopping in general.

Most of the students interviewed live within close walking distance to a supermarket. The

advantages of shopping online as time saving for the supermarket nearest them would be

minimal, but not all supermarkets are made equally. If a supermarket thought they could

provide different products for their customers than a competing chain, then online grocery

shopping would be the way to do this. Students will go to the nearest store on foot, but online

there is no such necessity. Online grocery shopping here provides an untapped competitive

potential.

Despite reluctance to purchase groceries online due to the issues of quality and security,

respondents still answered positively to membership fees. This may be because they were

considering membership fees from a third person perspective of someone that would buy

groceries online, or they just find the idea of memberships attractive. Other stores, such as

Costco have found success in employing memberships, so this attraction form participants

could just be the membership effect. More research would need to be done in this area to find

to what extent having a membership has on purchasing actions.

4. Recommendations

In the detailed findings, we identified a number of issues that an online grocery shopping

service needs to keep in mind: price, convenience, security, and freshness of perishables. For

our recommendations we address these issues along with some brought up in the open ended

questions from the survey.

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Our first recommendation has to do with the way the website should be designed. For the

convenience of the shopper, the website needs to have search features and display all products

that would exist in the physical store. If products are missing or too difficult to find on the

website, there would be less reason to shop online. Some participants mentioned that going to

a physical store they sometimes buy products by browsing, i.e. they did not go into the store

thinking they would buy these products. They see this is a detriment to buying online,

however, if an optional online membership exists, then the website can be customized to

participants to account for this. The website can recommend products based on past purchases

and relevant statistical data.

One of the big drawbacks to shopping online is guarantee of freshness of perishables. There

are two things that can be done with the website to account for this. The first is to guarantee

fresh vegetables, and then give approximate sizes and weights for the products that the

customer will receive. This creates trust with the customer if delivered, and gives them a good

approximation of what they are paying for. The second is to give approximate expiration dates

online for perishable products, and always ensure that products sold online will have the latest

possible expiration dates. By doing these two things, the store can build trust with customers

over time, which will be important in tackling the issue of online security.

Looking at the open ended questions, many participants were confused about the certain

aspects of shopping for groceries online. Some thought that buying groceries would be similar

to buying electronics or books: the item would be shipped in a few days and will arrive in a

box like regular mail. In actuality, most of the time it would be same day delivery by a person

with a vehicle, similar to purchasing fast food over the phone or online. The website should

have provisions to educate customers on this so that they know they will be receiving the

products the same day. This will allay some fears of the preservation of freshness for

perishables.

Another aspect that needs to be explained is hygiene. Some participants felt that having

products delivered would not be hygienic. This is not the case, as the stores do not keep the

fruits and vegetables perfectly clean, and those products purchased from physical stores must

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be washed as well. Thus, having them delivered should not change the status of the products.

To avoid this misunderstanding, this as well should be included on the website.

When tackling the issue of price there are two solutions. The first is to allow free deliveries

for purchases above a set amount, such as $50. This would allow the store to keep prices and

margins the same, while adding value to customers. The second would be to create a

membership program that would allow prices to be lowered for certain items, which creates

value in a different way. Some participants of the survey found the idea of a membership

attractive but were unsure exactly what they would be getting from using it, so an explanation

of the benefits would have to be made clear on the website as well.

There are some additional recommendations from the comments that we would like to

address. One would be to include a cooling chamber in the vehicle that transports the

groceries, as this would allow perishables to be kept fresh during transit. This, along with the

provisions in the website, should allay all fears about the freshness of perishables and would

allow the store to be competitive in all product categories. Another recommendation is to not

only provide same day delivery, but allow customers to choose a specific time that the

products should arrive at with a thirty minute wiggle room. Some participants were considered

that they would not be able to wait an hour or two for groceries to arrive, so asking for a

specific time would be very helpful for them and doable for the store. Lastly, there should be a

guarantee, either for store points or money back, that would alleviate customer dissatisfaction

if an order were processed incorrectly and the wrong products were delivered. This would

again protect the trust of the customers in the store and also alleviate any inconvenience they

might suffer.

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Appendix A

Questionnaire

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Grocery Shopping Habits Survey

Please be kind enough to fill out this short survey to help us determine your opinions regarding online grocery shopping

services (which includes home delivery) for students in the Greater Montreal Area. Please answer all questions as

truthfully as possible. This survey should take no more than 5 minutes. Thank you for your time!

* Required

Do you cook your own food? *

Always

Often

Sometimes

Rarely

Never

How many times per month do you purchase groceries? *

1-2 times per month

3-5 times per month

More than 5 times per month

Approximately how much per month do you spend on groceries? *

Less than $50.00

$50.01-$100.00

$100.01-$150.00

$150.01-$200.00

More than $200.00

What is your ideal monthly budget for groceries? *

Less than $50.00

$50.01-$100.00

$100.01-$150.00

$150.01-$200.00

More than $200.00

Where do you perform the majority of your grocery shopping? *

Provigo

Metro

IGA

Loblaw's

Grocery Shopping Habits Survey http://spreadsheets.google.com/viewform?hl=en&formkey=dE...

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PA

Quatre Frères

Mourelatos

Other:

How do you usually travel to this grocery store? *

On foot

Car

Bus

Metro

Bicycle

Other:

How long does a one-way trip between your residence and this grocery store usually take? [in minutes] *

Where do you have access to the Internet? *

Home

School

Work

In transit

Other:

How many times per week do you go online? *

Less than once per week

1-2 times

3-4 times

5-6 times

I go online everyday

Which of the following goods, if any, have you purchased online in the past year? *

Art

Books/Magazines

Clothing

Cosmetics and Beauty Products

Grocery Shopping Habits Survey http://spreadsheets.google.com/viewform?hl=en&formkey=dE...

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Electronics

Flowers/Plants

Food/Drink [non-groceries]

Furniture

Groceries

Home Products

Internet Products

Jewelry and Accessories

Medical/Health Products

Physical CDs/DVDs

Sports Equipment

Toys/Games

Travel/Vacations

I have not made any online purchases in the past year

Other:

For your most recent online purchase, what was the primary factor influencing your decision to purchase this

product (relevant to presentation, not the product itself)? *

The product was visually well-presented

Agreeable price

Proper explanation of product features

Overall website quality

Convenience of online shopping

Ease of browsing available items on website

Payment method acceptable for item purchase

N/A

Other:

If you have not purchased any goods online in the past year, what hindered you from doing so? (Check all that

apply) *

It was too difficult for me to find what I was looking for

I did not want to submit my personal billing information over the Internet

I was afraid my order might be lost

I find online shopping impersonal

N/A

Other:

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Grocery Shopping Habits Survey

* Required

Which of the following groceries would you NOT feel comfortable purchasing online? *

Beef

Beverages

Bread

Cereals

Chicken

Condiments

Dairy items

Deli meat and cheese

Dessert mixes

Fruits

Household cleaners

Medicine

Pet items

Pork

Seafood

Seasonings

Snacks

Soups

Toiletries

Vegetables

I am comfortable purchasing all groceries online

Other:

If you checked any groceries above, please briefly explain why:

If you were to use an Online Grocery Shopping (OGS) service, what is the maximum delivery time you would

Grocery Shopping Habits Survey http://spreadsheets.google.com/formResponse?formkey=dER...

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accept? *

Less than 30 minutes

30 minutes

45 minutes

1 hour

90 minutes

2 hours

3 hours

More than 3 hours

N/A I am usually not in a rush

If you were to use an Online Grocery Shopping (OGS) service, what is the maximum delivery fee you would be

willing to pay? *

I would want the service to be free of charge

$5.00

$10.00

$15.00

$20.00

I would be willing to pay more than $20.00

How likely would you be to buy groceries online and have them delivered if there were an annual membership fee

but not delivery charges? *

Very likely

Somewhat likely

Neither likely nor unlikely

Somewhat unlikely

Very unlikely

What is the maximum annual membership fee you would be willing to pay? *

I would not want to pay any membership fee

$10.00

$20.00

$30.00

$40.00

$50.00 or more

How likely would you be to buy groceries online and have them delivered if... *

Very likely Likely Neutral Unlikely Very unlikely

Grocery Shopping Habits Survey http://spreadsheets.google.com/formResponse?formkey=dER...

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Very likely Likely Neutral Unlikely Very unlikely

Costs were slightly HIGHER

than regular grocery store

prices?

Costs were slightly LOWER

than regular grocery store

prices?

Costs were the SAME as a

regular grocery store

prices?

There was a service delivery

fee per order?

How important are each of the following factors relative to your consideration of purchasing groceries online

instead of going to the store? *

Very importantSomewhat

important

Neither

important nor

unimportant

Somewhat

unimportant

Very

unimportant

Better prices

Time Saving

Easier to navigate

Same-day delivery

What is your gender? *

Male

Female

What is your age range? *

18-20

21-23

24-25

In which area/neighborhood do you reside? *

Ahuntsic-Cartierville

Anjou

Côte-des-Neiges/Notre-Dame-de-Grâce (NDG)

Downtown Montreal

Lachine

LaSalle

Laval

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Plateau Mont-Royal

Le Sud-Ouest

L'Île-Bizard-Sainte-Geneviève

Mercier/Hochelaga-Maisonneuve

Montréal-Nord

Outremont

Pierrefonds-Roxboro

Rivière-des-Prairies--Pointe-aux-Trembles

Rosemont--La Petite-Patrie

Sainte-Anne-De-Bellevue

Saint-Léonard

Verdun

Ville-Marie

Ville Saint-Laurent

Villeray/Saint-Michel - Parc-Extension

Westmount

Other:

Are you a part-time or full-time student? *

Part-time

Full-time

If you have a job, what is your monthly income? *

Less than $100

$100-200

$200-300

$300-400

More than $400

I do not have a job

Feel free to add any comments or suggestions that you feel may be relevant to the Online Grocery Shopping (OGS)

services:

Grocery Shopping Habits Survey http://spreadsheets.google.com/formResponse?formkey=dER...

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Thank you!

Thank you for participating in our survey. We appreciate your patience. Enjoy your day!

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Appendix B

SPSS Cross-tabulations