Online grocery shopping in Jyväskylä : Business models & Demand

Abstract

The online grocery market is subjected to grow in the next few years in Finland. 72% of Finnish population shops online for goods and is comfortable experiencing the exponen-tial growth of e-commerce. However, grocery retail is still practiced the traditional way of dragging a shopping cart down the aisle and waiting in the checkout line to purchase goods. If an online grocer provides quality service at the right price, there is a lot of po-tential for the growth of electronic grocery shopping in Finland. The aim of the research was to predict the demand for an online grocery service in Jyväskylä and discuss which business model can be used to target that demand. The re-search could provide useful background information for building an online grocery service in the region of Jyväskylä. The study conducted used mixed research methods of qualitative and quantitative. Busi-ness models were studied adopted by e-grocers of the present and past using qualitative methods. Success factors and potential pitfalls are also considered, providing a better understanding of e-grocers strategies. The research is limited to case examples from the UK, the US and Finland. Quantitative methods such as survey research were used for the latter part of the study. A questionnaire was conducted in the region of Jyväskylä to gather sample data for analysis. Statistical inference methods of confidence interval es-timation and hypothesis testing were used to draw conclusions on behalf of the popula-tion from the collected data sample. Market analysis for the demand structure were conducted and characteristics of the targeted population were closely evaluated. Conclu-sions were drawn for the demand for an online grocery service in Jyväskylä and business models were discussed. Research objectives are met and suggestions for further re-search mentioned.