Online Grocer refers to a grocery store that allows private individuals and businesses to purchase groceries and grocery products online. Despite the growth and importance of online grocery, little is known about how people shop online for groceries. Previous studies identified factors influencing on-line buying behavior; challenges faced by on-line retailers but could not identify the purchase behavior of Indian grocery consumers. In order to study the online grocery retailing influence on customer buying behavior in a systematic manner a model is developed with simulating & restraining factors with an objective to investigate the effect of stimulating and restraining factors on perceived value towards purchasing grocery online in Bengaluru City. To collect the primary data research questionnaire consisting of 69 questions was distributed to 650 respondents, out of which 632 questionnaires were found suitable for data analysis, SPSS version 21.0 has been employed for tabulation and graphical representation of data. Statistical tools like Percentage analysis, multiple regression analysis, Sobel test for mediation analysis, and One –way ANOVA were used to test the research hypothesis. The findings of the study revealed that, the stimulating factors such as website / mobile app’s environment, hedonic motivations, perceived usefulness, perceived ease of use, vendor goodwill, pricing and promotion, purchase/ return policy, product assortment, convenience, and quality of service has a significant positive influence on perceived value towards online grocery shopping. Whereas the restraining factors such as perceived risk, intangibility has a significant negative influence on perceived value towards online grocery shopping, evidently discouraging customer intention to purchase grocery online. Perceived trust exhibited a significant positive influence on perceived value, which in turn significantly influenced intention to purchase grocery online. From sobel test it was evident that, the perceived value towards online grocery shopping mediates the relationship between the exogenous factors and intention to purchase grocery online.

Online Grocery Retailing, Customer Buying Behavior, Stimulating Factors, Restraining Factors, Perceived Trust, and Perceived Value