Nowadays, online grocery shopping offers many more benefits. However, there are still some limitations.
Countdown is virtually in everyone is home or workplace. Instead of going to the nearest supermarket, consumers can make their grocery purchases online. This makes it highly convenient for customers. Also, when customers are making a purchasing decision they can easily order online and get it delivered or pick up their shopping. From both a business and consumer view online supermarkets give consumers a high level of time utility, because consumers can shop whenever they want – not just when the stores are open. This increases customer value and therefore customer satisfaction.
This also means that a company has a place wherever their customers are. As part of the marketing mix, a company addresses Place. By having an online shopping presence, Countdown has expanded their place massively. For consumers they no longer need to locate a store to go to. This is important
Delivery to customers adds to customer value in the form of task utility. Task utility is defined as someone doing something you (Witiger, 2013). This is true with home delivery, as consumers no longer have to drive and load their groceries into their vehicles or public transport. Delivery allows consumers to save time and do other tasks instead of supermarket shopping.
Overall, online supermarkets offe...
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The biggest obstacle for successful online supermarket start-ups, is funding. Start-ups need a considerable amount of funding to purchase the warehouses and the delivery trucks
Start-up online supermarkets have the ability to target certain market segments within the whole market. A good example of this is myfivemeals, which has been recently founded by a University of Canterbury student (O'Connor, 2014). Myfivemeals offer home delivery of ingredients to make five recipe meals. In this case, Stefan Warnaar has decided to compete for student’s business. Their cost is $130 a week and each meal feeds 4 adults. This is reflective of the typical demographics of students, in particular income that a student has. While this is not directly an online supermarket, it in the industry of Food and food delivery and is a novel and inexpensive way to set up business.
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