Analysing the Impact of Perceived Risk, Trust and Past Purchase Satisfaction on Repurchase Intentions in Case of Online Grocery Shopping in India

Abstract

The Indian online grocery market has been propelling since last few years. The size of online grocery market in 2020 was estimated as $2.9 billion and it is further anticipated to reach at the compound annual growth rate (CAGR) of 37.1% during 2021 to 2028. Companies such as Amazon, Flipkart grocery, BigBasket, Grofers and Jiomart have been coming up with new attractions for consumers such as providing timely no contact delivery, accepting various digital modes of payment and offering several discounts which have fascinated consumers towards buying their regular grocery from various online platforms. Corona virus has also fuelled up the safety concerns of people; due to which a large section of the citizens are working from home and are dependent on the online platform for various purposes including grocery shopping. This has provided several growth opportunities to the online grocery market. This research investigates about the purchase behaviour of customers towards online grocery shopping. The study aims to understand the purchase behaviour of e-grocery shoppers of India and to examine the association between satisfactions with online purchase, trust on online grocers, perceived risk and online repurchase intention of grocery items. The study uses primary data collected from 555 online grocery buyers. The findings of the study indicate that online customer satisfaction is a significant factor that influences repurchase intentions of online grocery shopping. Perceived risk negatively influence trust as well as repurchase intentions. Trust is found to be a mediating factor between shopping satisfaction and repurchase intentions. The study also builds and tests an online customer behavioural model with actual purchasing behaviour and identifies the continued presence of perceived risk, shopping satisfaction and trust in grocery e-retailing.