Survey data analysis: We conducted an online survey and had 121 respondents from different US cities. Most of them did not use Peapod for their grocery shopping (Appendix A)
* Attributes important for choosing Grocery Items: From our findings, we could find that most of the people cared about past experience at the store and price for choosing their grocery stores (Appendix B). Also the other major factors were nutritional information and looks of the items. Therefore, making the grocery experiences better and optimizing prices for the consumers could play an important role in the improvement of retention rate. Surprisingly people did not care about novelty aspect that usually is one of criteria’s to go for grocery shopping.
* Attributes to choose the grocery destination: In order to segment the customers who might have different preferences ...view middle of the document...
* Difference between Peapod and Local grocery description: The other most important thing we wanted to measure was to see the difference between how people rate the Peapod experience and how they rate the local grocery store (Appendix D). And we found that local grocery stores scored high consistently on all the parameters: ease of access, shop and check out quick, good prices, availability, visuals, new product discovery. Being an online grocery store, the advantages of convenience and time savings are not realized by the customers and do not translate well in their responses either. Prices are another important criteria as identified before and should be focused on. They need to come up with more comprehensive packages or loyalty programs for customers to consistently try Peapod. The other set of questions we asked was to tell us what comes to their mind when they think of Peapod and while most of users said that they thought of it being a convenient option, it doesn’t seem to be as convenient as people consider their grocery stores. Also most of them associated words like “Expensive”, “Low quality” and “Lack of options” with the Peapod.
* Decision of using Peapod dependent on demographics: We also tried to find the correlation between the decision of using Peapod and Gender, Age, Distance from super-market, car ownership and family size. From all the Peapod users in our survey results (which is fairly a small size) we found that 80% of them own a car and 70% of them lived within a radius of 10-20 minutes from the supermarket. On the contrary, among the non-Peapod users we had only 40% car ownership among the respondents and most of them stay within 10-minute radius of the supermarket access. We also did the same analysis on the users who tried Peapod but did not continue using it and found that 95% people did not own a car and 80% lived a 10-minute radius of the supermarket.