Online Grocery Shopping Trends in UAE

This assignment delves into the growing trend of online grocery shopping in the United Arab Emirates. It examines consumer preferences, satisfaction levels with current services, and the factors influencing their online purchasing decisions. The analysis also considers challenges faced by businesses providing online grocery options, such as cybersecurity concerns and customer turnover. The research utilizes a mixed-methods approach, incorporating survey data from consumers and interviews with industry professionals to provide a comprehensive understanding of this evolving market.

Launching and Online Grocery Shop in United Arab Emirates
Name of the Student:
Name of the University:
Author Note:
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Abstract
The study considered the market feasibility of Grocery Online, which is a start-up online retail
store selling the grocery products to the people of United Arab Emirates. The identification of
the problem statement and research rationale would help in developing the aim, research
objectives, and research questions. The literature study would provide the details of the external
market opportunities and threats. Furthermore, this section of the study would also generate the
ideas about the necessary promotional activities that would be more beneficial in drawing the
attention of the customers towards the e-grocery products. Porter’s five forces analysis provides
the detailed analysis of the market in terms of the market positioning.
The business plan is focusing on the establishment of the online grocery shop in United Arab
Emirates. In this business plan, the positivism philosophy is selected to extract the hidden truth
from the number of responses. It has been observed that the assumptions would not be preferable
for establishing the business that has to deal with the long sustainability purposes. The use of the
deductive approach and descriptive techniques was also quite beneficial for the study. On the
other hand, the mixed method research is also developed in this study.
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Acknowledgement
I am quite grateful to the MBA program that has helped me in generating the adequate
knowledge about the business research method. I would like to thank my professors and mentors
for assigning this project work. The enormous help and supports derived from their end were
much significant for me. I would like to thank the participants in the primary data collection
process. I would like thank each one of the associates for keeping faith on me and providing me
this opportunity to enhance my personal and professional skills.
Thanking You
Regards
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Table of Contents
Chapter 1..........................................................................................................................................8
Introduction......................................................................................................................................8
1.0 Introduction................................................................................................................................8
1.1 Research Background................................................................................................................9
1.2 Background of the Company.....................................................................................................9
1.3 Rationale of the Research........................................................................................................10
1.4 Scenario Chosen......................................................................................................................11
1.5 Research Aim...........................................................................................................................13
1.6 Research Objectives.................................................................................................................13
1.7 Research Questions..................................................................................................................13
1.8 Research Significance..............................................................................................................14
1.9 Project Structure......................................................................................................................14
1.10 Summary................................................................................................................................16
Chapter 2........................................................................................................................................17
Literature Review..........................................................................................................................17
2.0 Introduction..............................................................................................................................17
2.1 Conceptual Analysis of the e-commerce grocery business.....................................................17
2.2 e-Grocery market in United Arab Emirates.............................................................................19
2.5.1 Porter’s Five Forces Analysis...............................................................................................24
2.5.2 SWOT Analysis....................................................................................................................27
2.6 Statement of the Future Desired Position................................................................................28
2.7 Gap Analysis............................................................................................................................29
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2.8 Linking the identified Gaps.....................................................................................................29
2.9 Implementation Plan................................................................................................................30
2.10 Outcomes of the Key Stakeholders Group............................................................................31
2.11 Resource Implications...........................................................................................................32
2.12 Budget Planning.....................................................................................................................33
2.13 Summary................................................................................................................................34
Chapter 3........................................................................................................................................35
Research Methodology..................................................................................................................35
3.0 Introduction..............................................................................................................................35
3.1 Research Philosophy................................................................................................................35
3.1.1 Justification of Selecting Positivism Philosophy..................................................................36
3.2 Research Approach..................................................................................................................37
3.2.1 Justification of Selecting Deductive Approach....................................................................37
3.3 Research Design......................................................................................................................38
3.3.1 Justification of Selecting Descriptive Design.......................................................................39
3.4 Data Collection Process...........................................................................................................39
3.4.1 Secondary Data Collection Process......................................................................................39
3.4.2 Primary Data Collection.......................................................................................................40
3.5 Sampling Method and Sampling Size......................................................................................42
3.6 Data Analysis Method.............................................................................................................43
3.7 Accessibility Issues..................................................................................................................43
3.8 Ethical Consideration...............................................................................................................44
3.9 Time Schedule.........................................................................................................................44
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3.10 Summary................................................................................................................................45
4.0 Introduction..............................................................................................................................47
4.1 Part A Survey...........................................................................................................................47
Quantitative data............................................................................................................................47
4.2 Part B Qualitative data.............................................................................................................62
4.3 Summary..................................................................................................................................63
Chapter 5........................................................................................................................................64
Conclusion and Recommendation.................................................................................................64
5.0 Conclusion...............................................................................................................................64
5.1 Linking Objectives with Literature Review and Primary Data Information...........................64
5.2 Recommendations....................................................................................................................66
5.3 Future Scope of the Research..................................................................................................67
References......................................................................................................................................68
Appendix........................................................................................................................................78
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List of Figures
Figure 1.1: Research Structure......................................................................................................15
Figure 2.1: Estimated Online Retail Sales.....................................................................................22
Figure 2.2: Porter’s Five Forces....................................................................................................24
Graph 4.1 Gender of the customers...............................................................................................48
Graph 4.2 Durability of the customers regarding the online purchases........................................49
Graph 4.3 Response of the customers regarding the current performance of the online shopping
services..........................................................................................................................................51
Graph 4.4 Satisfaction levels of the customers regarding online services fulfilling their dreams of
possessing branded products..........................................................................................................52
Graph 4.5 Important factors for the customers while making online purchases...........................54
Graph 4.6: Preferences of customers regarding online grocery purchase and store visits............55
Graph 4.7: Response of the customers regarding the presence of essential factors for receiving
quality products.............................................................................................................................57
Graph 4.8: Reasons why customers prefer to buy grocery items online.......................................59
Graph 4.9 : Satisfaction of the customers regarding the services of the ecommerce sites............60
Graph 4.10: Preference of online sites for purchasing grocery items............................................61
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List of Tables
Table 2.1 SWOT Analysis.............................................................................................................28
Table 2.2 Key Stakeholders...........................................................................................................31
Table 2.3 Financial Budget............................................................................................................34
Table 3.1: Timeline........................................................................................................................45
Table 4.1: Gender of the customers...............................................................................................48
Table 4.2: Durability of the customers regarding the online purchases........................................49
Table 4.3: Satisfaction of the customers regarding the current performance of the online
shopping services...........................................................................................................................50
Table 4.4 Satisfaction of the customers regarding online services fulfilling their dream of
possessing branded products..........................................................................................................52
Table 4.5 Important factors for the customers while making online purchases............................54
Table 4.6 Preference of online shopping over store visits.............................................................55
Table 4.7 Response of the customers regarding the presence of essential factors for receiving
quality products.............................................................................................................................57
Table 4.8 Reasons why customers prefer to buy grocery items online.........................................58
Table 4.9 Satisfaction of the customers regarding the online services of the ecommerce sites....60
Table 4.10 Preferred online sites for purchasing grocery items....................................................61
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Chapter 1
Introduction
1.0 Introduction
The trends of online shopping have been influencing the customers worldwide. In today’s
world, the customers are much inclined towards the sophisticated use of the online retailing. The
online retail market in United Arab Emirates signifies the significant growth each year (Bell
2010). Availability of the high number of retailers is quite significant in contributing growth to
the economic structure of the country. Even though the market share is less in compare to the
markets of Western Europe, but it is relatively high when it is compared to the other markets
included in the Gulf Cooperation Council. The study would consider the market feasibility of
Grocery Online, which is a start-up online retail store selling the grocery products to the people
of United Arab Emirates.
This chapter of the study would provide the complete background of the online grocery
market in United Arab Emirates. The details of the company would also be discussed in this
chapter. The identification of the problem statement and research rationale would help in
developing the aim, research objectives, and research questions. The chapter would provide the
insightful ideas about the entire research process. Depending on the research problem identified
in this chapter, the further literature section would provide the theoretical background of the
subject matter.
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1.1 Research Background
The online grocery market of United Arab Emirates has been signifying the remarkable
growth since past few decades. It is reported that in the year of 2014, the grocery market of UAE
was worth US$28.7 billion, which was 1.1% higher than the market share of 2013. The country
scored highest in the income rate among all other countries in the world. The UAE residents
spent almost US $3,088 per capita on grocery shopping (Agr.gc.ca 2017). This grocery market of
UAE is the emerging market for the importers from foreign countries (Bell 2014). People in
UAE demand the healthier and convenient foods due to their busy schedule and well awareness
about fitness. Therefore, they are inclined towards consuming the healthy food as per their
convenience. The online grocery shops ensure the convenient product samplings as per the
customers’ choice. The availability of the filter search helps the customers to identify the high
quality, variations, and lower cost grocery products (Atlason and Gerstlberger 2017). On the
contrary, the online grocery stores in United Arab Emirates have been experiencing enormous
competition from their rivals. Moreover, people are concerned about the online transactional
process. The lack of online security may affect the information or customer details provided
through the online transaction system. In such cases, the banking details of the customers would
be under the severe risks. Hence, it is important for the online retail store operators to identify
the malicious elements that may cause the malfunctioning in the online transaction process.
1.2 Background of the Company
e-Grocery is the start up business that is looking forward to sell the online grocery
products to the people of United Arab Emirates. The company is utilizing the high quality
technical tools to formulate the online hub from where the customers would receive the access to
order the grocery products (Hafeez et al. 2016). The focus of the company is to gain more profits
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from the UAE customers by offering them high quality grocery products and secure online
transaction process. It is essential for the business to conduct the extensive market research to
ensure the market demands and market feasibility. The business is even looking forward to
gather more capital amount to structure the business with proper technological development. The
major focus of the company is to offer the high quality and healthy grocery and food products
and gather the remarkable customer base (Schilirò 2015). The development of the technological
tools for the secure online transactions would be much beneficial to gain trust. Hence, the
business requires structuring a systematic business plan by conducting the required market
research and developing necessary functionalities.
1.3 Rationale of the Research
The current scenario in UAE online grocery market specifies the competitiveness among
the rivals. It has been observed that the profits generated from the online retailing process have
contributed much significantly to improve the economic structure of the country. The customers
in UAE are much fond of shopping through online sites (Agr.gc.ca 2017). The rising confidence
of the consumers in online retailers, lower price of the grocery products, and security in
transacting money through online sources are much in favour of establishing the online grocery
shop in United Arab Emirates. However, sometimes, the online retailers experience the
significant challenges in selling through online sites. First, the competitive landscape in UAE is
quite recognizable. The online retailers need to pay attention towards the value added purposes
in order to gather the attention of the customers (Marickar and Rajsekar 2014). The unique value
presented in the online purchasing process would influence the customers’ motifs.
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The customer sophistication and high internet penetration are the major factors that have
the clear impacts on the customers’ purchase behaviour. Secure payment gateways are also
helpful enough in drawing the attention of the customers. However, it is notable that the e-
commerce growth is not likely to challenge the shopping malls; rather it is a compliment.
However, the customers seek for the product variations from a single source (Ahmed and Shawli
2014). The filter search available in the online retail shops is helpful for the customers to search
for the proper price and product variations as per their convenience. The technological
development is also an important concern for ensuring the secure transaction process. The
customers are much concerned about providing their banking details over the internet in order to
make a payment. It is essential to establish the secure gateway to protect the information from
being hacked. It would be helpful in building trust (Kinder 2016). The reliability generated
among the consumers would ensure the business sustainability for long run. The description of
these concerns is needed to be taken into account while formulating the structured business plan.
1.4 Scenario Chosen
The research is based on the development of the online grocery shop in United Arab
Emirates. The company, e-Grocery is a startup business, which is looking forward to establish
the online grocery shop by targeting the customers from United Arab Emirates. It is essential for
the company to pay attention towards the market demands and market acceptability. The online
retailing market in United Arab Emirates is quite competitive (Zeffane 2015). Therefore, the
company requires a structured business plan to establish and survive in this competitive
landscape. Few of the essential factors have the clear impact on the purchasing behaviour of the
customers. For instance, the customers perceived for the high quality products with lower costs.
Sometimes, the customers look for product variations from a single source. The online shopping
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sites provide the consumers to select from the filter search and identify the products as per their
needs (Kindra, Ahmed and Shawli 2014). The online retails shops are much surrounded with the
competitive landscape in United Arab Emirates. It is much necessary to consider the demands of
the consumers if the business requires maintaining the sustainable position in this competitive
ground. It has been observed that consumers in United Arab Emirates are quite health conscious
and they like to purchase the high quality products at lower price. Hence, it is necessary to
evaluate the preference of the consumers before establishing the business.
Another major concern for establishing the online grocery shop is the secure gateway for
the transactional purposes. When the consumers are purchasing products from the online
medium, they need to provide their baking details over the internet. In such cases, consideration
of the higher cyber security is much necessary (Mandle et al. 2015). The business is looking
forward to develop technological configuration for ensuring the secure transactional process. The
customers would receive the ‘one time password’ in every transaction after providing the details.
After confirming this one time password, the money would be deducted from their account.
Hence, the transaction is considerably safe for the consumers in United Arab Emirates. However,
it is still require improving the software security to prevent the malware functioning in the
internet gateways.
It is quite considerable that the capital amount for establishing the e-commerce business
is relatively lower. However, the company requires planning the proper budgeting structure that
would provide the details about the business investments and necessary segments required for
opening the online grocery shop. In fact, the company is also focusing on developing the
effective promotional plan. Promoting the business in an efficient way helps in drawing the
customers’ attention. Nonetheless, it is important to ensure the unique and innovative ways of
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promoting the business to the consumers. The extensive market research and adequate
information regarding the market would be helpful enough in developing the ideas regarding the
entire business. Identifying the customer demands, customers’ purchasing behaviour, and the
market competitiveness, the company would ensure the further business activities.
1.5 Research Aim
The aim of the research is to identify the market opportunities to establish the online
grocery shop in United Arab Emirates. The study also attempts to discuss the concerns about the
market demands and acceptability for the long sustainability of the business.
1.6 Research Objectives
 To identify the online grocery trends among the customers in United Arab Emirates
 To provide the detailed analysis of the market opportunities and demands for establishing
the online grocery shops
 To determine the potential gaps in establishing the online grocery shops in United Arab
Emirates
 To present the preferable recommendations in resolving the emerging difficulties
experienced during the establishment of online grocery shop
1.7 Research Questions
 What are the primary factors to be considered during the establishment of the online
grocery shop in United Arab Emirates?
 How e-Grocery can determine the market acceptability of the online grocery shops?
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 What are the significant challenges experienced by the online retailers in establishing the
online grocery shops?
 How the company can build trust among the consumers to ensure long-term business
sustainability?
1.8 Research Significance
The research is completely focusing on the e-business market in United Arab Emirates.
The case study follows the establishment of the e-grocery shop in United Arab Emirates. The
study would conduct the extensive market research by presenting the theoretical background of
the subject. On the other hand, the research is conducted by applying the proper methodologies.
The identification of the market opportunities and threats will be helpful in understanding the
business needs. Moreover, the collected information from the population will also specify the
demands of the customers that are necessary for developing the business. Hence, it can be
ensured that the research study has the considerable significance.
1.9 Project Structure
The project would be described by considering the following structure
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Figure 1.1: Research Structure
(Source: Created by the Author)
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IntroductionBackgroundoftheResearchRationaleScenarioChosenResearchaim,objectivesandquestionsResearchSignificanceConceptualanallysisTheoreticalBackkgroundMarketAnalysisGapAnalysisLinkingBudgetPlanningResearchPhilosophyandJustificationResearchApproachandJustificationResearchTechniquesandJustificationDataCollectionProcessSamplingSizeandTechniquesDataAnalysisprocessEthicalConsiderationAccessibilityIssuesTimelineQuantiitativeDataCollectionqualitativeDataCollection

1.10 Summary
The chapter introduces the e-grocery business in United Arab Emirates. The study
provides the focus of the research scenario, aims, objectives, and questions. The concentration on
these specific contexts generates the adequate ideas about the exact research process. Moreover,
the study identifies the rationale of the research that is needed to be addressed while structuring
the systematic business plan. It is necessary to evaluate the ideas about the systematic
approaches that are necessary to establish the entire business. The recognition of the customer
demands and market competitiveness will be fruitful for the business to structure the business
functionalities. In fact, it will be necessary to manage these functionalities in a systematic way.
Based on the specific problems and case scenario discussed in this chapter, the further section of
the study would analyze the entire research process by applying the systematic methods.
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Chapter 2
Literature Review
2.0 Introduction
The e-commerce market specifies the significant growth in United Arab Emirates that is
favorable for the business marketers. It is a considerable fact that the e-commerce business in
United Arab Emirates considers the competitiveness and huge customer demands (Seetharaman
et al. 2017). The emerging sophistication in the internet retailing process also considers the
considerable growth in current UAE market. The literature study would focus on the market
scenario of accepting the e-grocery business in United Arab Emirates. The business
establishment depends on the market scenario and the acceptability of the consumers. Hence, it is
necessary to understand the considerable factors of the customers to ensure the long-term
business profits. The literature study would provide the details of the external market
opportunities and threats. Furthermore, this section of the study would also generate the ideas
about the necessary promotional activities that would be more beneficial in drawing the attention
of the customers towards the e-grocery products. In addition to this, the study would reflect on
the financial budgeting structure to establish the entire business. The clear description of the
market feasibility is presented further.
2.1 Conceptual Analysis of the e-commerce grocery business
The extensive use of the internet is signifying growth to the business marketers in these
years. It has been observed that the use of the internet is set to provide the business marketers the
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important source of growth that is contributing to the growth in the overall economic structure.
The technological improvement is also one of the responsible factors behind such development
of the e-commerce business. It has the remarkable impacts on the customers’ buying behaviour.
It can be specified that the future of the shopping largely depend on the number of the online
retail stores (Muhannad and Ahmed 2014). In fact, the emergence of the online businesses has
transformed the buying behaviour of the customers. e-Commerce is the significant business tool
that helps the business marketers in connecting a huge amount of customers worldwide.
Moreover, this is a useful source of gathering ideas about the customers’ needs and demands. On
the other hand, this business form is quite beneficial for the customers (Kamaladevi and
Vanithamani 2016). The presence of the filter search is enabling the process of identifying the
actual needs of the customers. With the help of such customized search option, the customers can
derive the adequate information as per their requirements. They can even opt for the products at
an affordable price. The products would be delivered at proper time after the order will be
placed.
While purchasing the products online, some of the considerable factors are needed to be
taken into account. For example, the customers opt for the high quality products with an
affordable price. The availability of the filter search would be helpful for the customers to
identify the products that they actually need (Xu et al. 2017). The availability of the secure
gateways also creates the remarkable impacts on the customers. The customers require providing
their confidential details over the internet sources. Hence, it is necessary to ensure the secure
gateways that will protect the data of the customers and provide the safer transaction facilities.
This approach is much helpful in gaining trust among the customers (Buchanan et al. 2014). The
product packaging and on-time shipping are also quite necessary for gathering reliability among
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the target customers. The online sources provide the significant opportunities to access the
feedback of the customers. Access to the customers’ feedback is quite beneficial in identifying
the areas of improvements. The clear network between the business marketers and the consumers
is helpful for the growth of the e-business growth.
2.2 e-Grocery market in United Arab Emirates
The retailing amount in UAE signifies the commendable growth per year. The growth
amount reaches up to US$2 billion whereas the retail sale is estimated to be US $8,000 per capita
in the year of 2015. It is reported that the consumers from UAE spend more amount of money is
shopping the grocery products through online sites in current scenario. However, it is important
to state that the increasing number of the online retailing in UAE cannot replace the shopping
experiences in malls. The malls in United Arab Emirates are extensively concentrating on the
entertainment purposes (Cheung, Xiao and Liu 2014). Therefore, people are more likely going
out for shopping in these malls. However, on the other hand, it is noticeable that some of the
specific criteria of online grocery shop still have the dominance power. For example, the grocery
shop can provide several cereal products or ingredients at very lower price than the market price.
The discount offers and the on-time delivery process are also much commendable in attracting
more customers. The online grocery market in United Arab Emirates is much competitive. The
emergence of the extensive mobile marketing is also needed to be taken into account. The
consumers all across the country are much fond of purchasing the grocery foods by using the
internet on their mobile phones (Solomon, Russell-Bennett and Previte 2013). The user-friendly
and accessible networks are making the online shopping easier to the customers. Therefore, it
can be assumed that the establishment of the online grocery shops has the significant chance to
ensure growth in future.
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2.3 Statement of the Assumptions
The expanding demands of the online shopping are more prevalent in United Arab
Emirates than few decades ago. It ensures the greater growth than the other countries in the
world. Especially, in the Gulf countries, like in Dubai and UAE, the sector is becoming more
popular (Ezzi 2014). There are various reasons for such increasing demands of the online
grocery market. These reasons are discussed further.
 The continuous influence of the western culture has becoming the remarkable reasons for
embracing online shopping.
 The emergence of the sophistication in the online shopping purposes is also persuading
the customers to adopt comfortable shopping experience. The customers perceive that the
higher bills can provide them the comfortable life style. Therefore, they chose to shop
online, even pay their bills through online mediums.
 The long working hours is also one of the major reasons for such increasing trends. After
spending longer time at their workplace, the consumers prefer to take rest instead of
going out for shopping.
 The hot weather and increasing traffics are also discouraging the consumers to go out for
shopping. Instead of this, they prefer to sit back at their place and place the order over the
internet sites.
The factors mentioned above are related and complimenting each other. Therefore, it can be
presumed that there is the considerable opportunity to establish the online grocery shop. In
considering the online grocery shop, three major online shopping models are needed to be taken
into consideration. These shopping models are, Brick-and-mortar supermarkets with online
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platforms, platforms playing intermediary role between the supermarkets and shoppers, and
warehouse platforms. Considering these factors for establishing the grocery forum online would
be essential for the company.
2.4 Review of the Current Position
There is the significant growth visible in the online grocery shops in United Arab
Emirates. Geant Online is dominating the online grocery market in UAE. The user-friendly
online website of this company is available both mobile devices and home. In analyzing the
current position, it can be implied that the online grocery shopping is not considered as the
revolution; rather it can be determined that the process is adopted for stepping forward towards
the development of the internet shopping industry (Thomas and Carraher 2014). People in UAE
demand the healthier and convenient foods due to their busy schedule and well awareness about
fitness. Therefore, they are inclined towards consuming the healthy food as per their
convenience. The online grocery shops ensure the convenient product samplings as per the
customers’ choice. The availability of the filter search helps the customers to identify the high
quality, variations, and lower cost grocery products (Atlason and Gerstlberger 2017). The
significant growth of the sector every year is quite feasible for the start up business.
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Figure 2.1: Estimated Online Retail Sales
(Source: Agr.gc.ca 2017)
The current scenario of the online grocery market in UAE Signifies that the online
grocery shops are much demanding in current times. Due to the rising lifestyles, the consumers
opt for the bargaining scope (Sebri and Zaccour 2017). The consumers in United Arab Emirates
are quite concerned about the rising prices of the groceries since the income rate is fixed. It is
even reported that the vegetable prices have been recognizably rising since 2014. Therefore, the
consumers demand for the grocery shops that would allow them to bargain and purchase the
affordable grocery products. The customer sophistication and high internet penetration are the
major factors that have the clear impacts on the customers’ purchase behaviour. Secure payment
gateways are also helpful enough in drawing the attention of the customers. However, it is
notable that the e-commerce growth is not likely to challenge the shopping malls; rather it is a
compliment. However, the customers seek for the product variations from a single source
(Ahmed and Shawli 2014). The filter search available in the online retail shops is helpful for the
22

customers to search for the proper price and product variations as per their convenience. The
technological development is also an important concern for ensuring the secure transaction
process. On the other hand, the consumers in United Arab Emirates are looking forward to
consume more healthy foods (Taghavi and Seyedsalehi 2015). They seek foods with high
nutritious value, fair price and better quality. The market selling organic foods, fresh fruits and
vegetables, natural foods, and other dietary supplements, has the larger customer base. In
addition to this, the UAE consumers even seek sugar-free, gluten free, and dairy free products.
Hence, while establishing the online grocery shops, these demands of the consumers are needed
to be taken into consideration (Chopra 2016). The further section of the study would provide the
clear understanding about the market analysis to determine the acceptability of the e-grocery
shops.
2.5 Environmental Analysis
The environmental analysis provides the in-depth knowledge regarding the factors that
have the clear impact on the business sustainability and the consumer purchase behaviour (Wu
2013). The availability of the filter search would be helpful for the customers to identify the
products that they actually need (Xu et al. 2017). The availability of the secure gateways also
creates the remarkable impacts on the customers. The customers require providing their
confidential details over the internet sources. Hence, it is necessary to ensure the secure gateways
that will protect the data of the customers and provide the safer transaction facilities. This
approach is much helpful in gaining trust among the customers (Buchanan et al. 2014). The clear
description about the market opportunities and threats would ensure the possibility of the long-
term business positioning and business profitability in a particular scenario (Vrontis, Thrassou
and Amirkhanpour 2016). The analysis of porter’s five forces would be helpful for the study in
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identifying the market scenario in which the e-grocery shop is planning to be established. The
identification market opportunities and threats would be analyzed by identifying the market
potentiality. The description of Porter’s five forces analysis is presented further.
2.5.1 Porter’s Five Forces Analysis
Porter’s five forces analysis provides the detailed analysis of the market in terms of the
market positioning. The five major factors are associated with this strategic model and these
factors have the clear impact on the business activities. It has been observed that the
identification of these segments is quite beneficial for structuring a complete business plan. The
segments are as follows:
Figure 2.2: Porter’s Five Forces
(Source: Vel and Rodrigues 2013)
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Bargaining Power of the Customers (High)
The first segment of porter’s five forces is the bargaining power of the customers. The
online grocery shop is quite growing in United Arab Emirates. Similarly, it signifies the
significant growth in the economic values as well. The customers prefer the healthier foods, fresh
fruits, high quality products, and lower price range. In order to satisfy their sophisticated
lifestyle, they often select the online mediums to pay their bills or purchase the grocery
materials. Al-Hawari and Al-hawari (2013) pointed out that the customers from United Arab
Emirates opt for the high quality products at a lower price since their income is fixed. Moreover,
each of the online shops is providing their best effort to extend their customer base. On the other
hand, the increasing competitive scenario is also threatening for other competitors in the country.
Hence, the bargaining power of the customers in United Arab Emirates is quite higher.
Bargaining Power of the Suppliers (Low)
It is notable that online presence of the grocery shop in United Arab Emirates has ensured
the sustainable position of the e-commerce businesses. The availability of the different online
shopping sites and the increasing demands of the customers are creating the significant impact on
the business growth (Gifford and Nilsson 2014). The suppliers also have the significant
contribution in this growth scenario. The number of the suppliers is also increasing in a
considerable. Therefore, the bargaining power of the suppliers is low in the online grocery
market of UAE.
Threat of Substitutes (High)
The preferences of the customers determine the sustainability of the business in a
particular market. It is essential to consider the demands of the customers, be it the substitutes or
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the product itself. Customers generally seek online shopping since they try to avoid the traffic
and they prefer the sophisticated lifestyle (Sweeney, Soutar and Mazzarol 2014). On the other
hand, due to their fixed income rate, they prefer to purchase the grocery products with high
quality but lower price. However, if the online sources were unable to provide the lower price of
the products, they would prefer spending their money on the local grocery shops. Hence, the
threat of substitutes is considerably higher in United Arab Emirates.
Threats of New Entrants (Low)
The online grocery shop in United Arab Emirates has the strengthened customer base.
The presence of the grocery market over the internet is quite demanding for the customers.
However, establishing the business in a competitive scenario is not an easy approach for the
businesses. It has been observed that the online security is much necessary for each of the
customers (Martins, Oliveira and Popovič 2014). The new entrants need to develop high security
skills for establishing the company online. The customers may face difficulties in trusting the
source while providing their confidential banking information during the transactional process.
The lack of proper security can therefore lead towards the negative consequences. Hence, the
threats of new entrants are quite lower.
Competitive Rivalry (High)
The market competitiveness in UAE Grocery market is much higher. It has been noticed
that the grocery market in UAE has signified continuous growth since 2014. The demands of the
customers are also increasing eventually. The development of the innovative technologies, the
extensive use of the internet and increasing demands for the sophisticated lifestyles are giving
rise to the online shopping sites (Wu et al. 2014). The consumers from United Arab Emirates
26

prefer to shop online instead of going out for shopping after a long working hours and passing
through the huge traffic conditions. On the other hand, the usefulness of easy online shopping is
also increasing the number of competitors in UAE market.
2.5.2 SWOT Analysis
The above discussion of the porter’s five forces provides the clear ideas about the
external market influence on the establishment of the online grocery shop in United Arab
Emirates. Identification of the external markets is thus helpful in recognizing the potential threats
and opportunities (Cheng and Huang 2013). It would even specify the underlying strengths and
weakness of the business in terms of establishing the business in UAE market. The SWOT
analysis is presented below:
SWOT Analysis
Strengths 1. The online security
2. High quality grocery products
3. Effective customer management
Weaknesses 1. Lack of proper feedback pages
2. Moderate Pricing structure of the products
Opportunities 1. Increasing Customer Demands
2. Enhancements of the internet use
3. Technological Development
4. Identification of the areas of improvements
through the online feedbacks
Threats 1. The extensive competitive landscape
27

2. The demands of the lower price of grocery
products
3. Emerging practices of more entertainments
in the malls of UAE are drawing the attention
of the customers.
Table 2.1 SWOT Analysis
(Source: Created by the Author)
The above analysis describes that the business requires structure the pricing criteria since
the customers in UAE mostly opt for the products with lower price. Most of the threats are faced
due to the huge market rivalry. The huge competition in the online grocery market is quite a
considerable factor for the startup businesses (Hsu, Chuang and Hsu 2014). It is necessary to
evaluate the most innovative techniques to win over this competitive scenario. The application of
the innovative styles and techniques in the online grocery market would be much preferable to
the target customers. Apart from these concerns, it is also important for e-Grocery to maintain
the high level of security for the customers who are transacting their money through online
mediums for paying the bills. Hence, these factors have the strengthened approaches to lead the
business towards acquiring the sustainable position in the competitive ground.
2.6 Statement of the Future Desired Position
Identification of the extensive growth in the online grocery sales and report presented by
the Euromonitor, it can be estimated that the sales ratio of online grocery would increase up to
95% in UAE by 2018. The demands for the sophisticated lifestyles by the UAE customers are
28

quite beneficial for the online businesses to gather more customer base through online retailing
process. Chen et al. (2015) suggested that in spite of the low usage penetration, internet has the
significant contribution in ensuring massive growth in United Arab Emirates. This emerging
trend is influencing the online shopping behaviour of the consumers of UAE. Therefore, the
Euromonitor market research is thus indicating the expansion of such online shopping process in
a commendable way in upcoming years (Hsu, Chuan-Chuan Lin and Chiang 2013). Moreover,
the development of the technologies is also contributing to the extensive use of the online
payment method. However, it is essential to maintain the high security level to protect the
confidential data of the potential customers.
2.7 Gap Analysis
The study provides the information regarding the market scenario of UAE in selling the
online grocery products to the customers. The information gathered from this section provides
the significant ideas about the consumer purchasing behaviour whereas it is unable to state the
improvement practices. The competitive scenario in the business market of United Arab
Emirates is quite threatening to the emerging business. It is quite difficult to sustain the business
presence if the company does not develop the innovative ideas. The study lacks the sufficient
information in understanding the current possibilities of establishing business since the business
techniques have transformed drastically in last few decades. The perception of the customers and
business capability is not discussed in this research.
2.8 Linking the identified Gaps
The research study concentrates on the development of the online grocery shops in
United Arab Emirates. In order to establish the business, the primary responsibility is to gather
29

the adequate information regarding the market condition. The understanding of the market
scenario is preferable for determining the key business activities. However, the lack of proper
suggestions related to the customers’ changing needs is creating the significant limitation in this
study. It is essential to evaluate the major segments that have the clear impacts on the customers’
purchasing behaviour. However, lack of sufficient information about the necessary
improvements is quite hazardous to identify the key marketing activities. Moreover, the
traditional approaches of the customers are also not defined to develop the ideas about the
relevant promotional activities. The lack of adequate information regarding the necessary online
securities has also made this study somewhat limited.
2.9 Implementation Plan
The implementation of the business plan is necessary for determining the establishment
of the online grocery shop in United Arab Emirates. However, the implementation plan depends
on a set of activities that would be preferable in achieving the business motto. These steps of
implementation plan are described further:
 Structuring the clear roadmaps for the operational process is the primary activity for the
implementation plan. There is the requirement of the clear vision, objectives, and
mission that are required to be achieved. During the execution of the business plan, these
specifications are essentially needed to be considered. This road map is quite useful for
the execution of the entire planning.
 Selection of the proper technology is much necessary for the business. It is essential to
present the complete audit form of the necessary technologies required for developing
30

the online websites. The selection of the appropriate software and the different
functionalities are needed to be monitored in a specific way.
 Determining the customer acquisition process by developing the effective and sequential
advertising is necessary for the business. Understanding the needs and preferences
through the online promotions is quite beneficial for developing a startup digital market.
It would provide the clear ideas about the demands and requirements of the customers to
maintain the long-term sustainability.
 Optimized security system for the online transactional process is necessary for the
structured implementation plan.
It is necessary to identify these aspects for developing an online grocery shop in United Arab
Emirates.
2.10 Outcomes of the Key Stakeholders Group
The key stakeholder group has the significant influence on the business establishment and
sustainability in a competitive scenario. The key stakeholders of the business are as follows:
Key Stakeholders
External Internal
Customers, Internet provider/dealer Business operational team,, technological team,
product delivery team, customer service team
Table 2.2 Key Stakeholders
(Source: Created by the Author)
31

The contribution of the stakeholders helps the business to maintain the sustainability for a
longer time. It is notable that the stakeholder dissatisfaction can lead to the business failure. It is
thus necessary for the company to pay closer attention towards the business process and fulfilling
the demands of the external stakeholders. Accordingly, the internal stakeholders would structure
the entire plan and develop the ideas about the future business activities. Hence, following these
functionalities are essential to satisfy the needs of the customers.
2.11 Resource Implications
Resources are the most useful components for establishing any business in a particular
area. The business is planning to establish the online presence in shopping the grocery products
through internet mediums. Hence, the selection of the resources would be based on the
components that are necessary for the e-commerce business. The following resources are
essential for the business set up through online sites in United Arab Emirates.
 The frequent accessibility to the internet
 Grocery products that will be sold to the customers through online sites
 Well-improved and secure payment gateways
 Well-developed technological equipment
 Support desk for the customer services
 Shipping materials
 Skilled workforce to deal with the order delivery processes
 Accountant for tracking the financial aspects
The above list generates the ideas about the required resources for establishing the online
grocery shop. The business requires focusing on one of the major components that is the online
32

security. In current times, the development of the technological knowledge has increased the
number of the cyber crimes. The customers requires providing their customer details along with
the confidential banking details over the internet during the billing process. It is sometimes quite
difficult to generate the reliability among the customers. The well-improved payment gateways
and increasing securities are sometimes unable to protect the data. Therefore, it is essential to
spread the awareness among the customers to prevent the cyber crime to shop with proper safety.
Generating trust among the potential customers would be beneficial in strengthening the
customer base and sustaining the business for a longer time.
2.12 Budget Planning
Planning the entire budget for the business set up is another much necessary factor for the
company. It is noticeable that the establishment of the online business requires lesser amount of
the capital budgeting than the physical presence of the store in the market. However, it is still
necessary to understand the business requirement for establishing the business in a structured
process. The sufficient capital amount for managing the set up is essential. The following budget
structure would suggest the necessary capital for establishing the business online.
Setting up the business USD
Accountant's fees $ 500.00
Solicitor's fees $ 500.00
Domain name registration $ 50.00
Insurance Premiums $ 350.00
Licenses $ 400.00
Workers compensation $ 2,000.00
Plant and equipment
33

Equipment $ 5,000.00
Vehicles $ 2,000.00
Telecommunications $ 2,000.00
Computers and software $ 6,000.00
Total Start Up Cost $ 18,800.00
Table 2.3 Financial Budget
(Source: Created by the Author)
2.13 Summary
The chapter provides the detailed market research for establishing the online grocery
shop in United Arab Emirates. Identification of the external markets, it has been specified that
the competitive scenario in the UAE Grocery market is quite impactful in terms of maintaining
the business sustainability. The chapter provides the information about the necessary budget
planning and the resource requirements for structuring the business. Following the
implementation process, the business will be able to gather the customer support. The further
research would be conducted by gathering ideas from the conducted research in this section of
the study.
34

Chapter 3
Research Methodology
3.0 Introduction
Research methodology is the systematic and structured way of collecting both the
primary and the secondary data. The research outcome would ensure the expected outcomes if
the methodologies are applied in a systematic way (Bell 2010). The research is conducted to
analyze the market opportunities to establish the online grocery shop in United Arab Emirates. It
is necessary to conduct the extensive market research for identifying the market trends. On the
other hand, it is also essential to gather the adequate knowledge about the preferences and
demands of the customers while purchasing the products from online sources. Considering such
requirements, the study is focusing on developing the mixed method research, such as collecting
both the primary and secondary data for the research process. This section of the study would
present the proper methodological approaches need to be undertaken for conducting both the
primary and secondary data. The use of the proper research design would be helpful in such
purpose.
3.1 Research Philosophy
In general, research philosophy deals with the nature, source, and knowledge
development process (Bryman 2012). It is necessary to identify the relevant philosophy for
conducting the primary and the secondary data. The research philosophy is categorized into three
types of classifications, such as Realism, Positivism, and Interpretivism. The positivism and
35

realism philosophies share the similar attributes in a research process (Collis and Hussey 2013).
The main focus of the positivism philosophy is to develop the realistic ideas or identify the
hidden truth. It is to be suggested that the positivism philosophy helps in identifying the real
scenario behind the research subject. Quinlan (2015) described that the positivism philosophy
deals with the structured method, precise observations, and logical deduction of the subject
matter. This typology helps in understanding the known probability that describes the real
scenario. This particular philosophy does not deal with any human interpretation and state the
real facts based on the collected information (Saunders, Lewis and Thornhill 2012). The major
purpose of the positivism philosophy is to reveal or uncover the truth and present the justified
reasoning behind subject matter. On the other hand, the interpretivism philosophy is decided
upon the presentation of the interpreted data (Schutt 2014). It can be implied that the
interpretivism philosophy deals with the clear understanding of the difference between the
humans and their behaviour in the society. The contribution of the social influence is much
signified in the application of the interpretivism philosophy (Seale 2012). The research study
deals with the positivism philosophy to collect the required data.
3.1.1 Justification of Selecting Positivism Philosophy
The research is focusing on the purchasing behaviour of the target customers through
online sources in United Arab Emirates. In order to collect the data, it is essential to consider the
real life scenario and the approaches to the business marketers to gain the attention of the
customers. The assumptions would not be preferable for establishing the business that has to deal
with the long sustainability purposes. Therefore, the research process is dealing with the
positivism philosophy, which helps in revealing the hidden truth by gathering the collective data.
The respondents have been facing the real life scenario due to which they are able to express
36

their demands during the data collection process. Hence, the use of the positivism philosophy is
justified for this study.
3.2 Research Approach
According to Yin (2013), research approaches are the procedures and plans for
understanding research span. This research span depends on the systematic approach that helps
in identifying the necessary outcomes of the research data. The research approach is classified
into two major divisions, such as deductive approach and inductive approach (Babbie 2012).
The deductive approach in a research study identifies the procedure of developing the
hypothetical reasoning. This particular approach is quite concerned with the development of
hypothesis that is based on the existing theory. It often designs a structured research strategy for
testing the hypothesis (Beech 2014). It is sometimes even considered as the means of hypothesis.
On the other hand, the inductive approach is based on the formulation of the new theory related
to the subject matter. It is at first starting with the closer observation and then proposed towards
the end of the entire research process. The inductive approach does not deal with the hypothetical
values for ensuring the development of the theoretical base of the research subject. However, in
this particular research process, the development of the hypothesis is mostly valued. Therefore,
the study deals with the deductive approach.
3.2.1 Justification of Selecting Deductive Approach
It is essential to keep the concentration on the sequential form of the hypothetical values.
The research hypothesis is generally concentrating on the major consideration that is the
acceptability of the online grocery shop. It is necessary to identify whether the start up online
grocery shop can create impact on the online purchase behaviour of the UAE customers. It is
37

essential to analyze the hypothetical values to identify the consequence and conduct the rest of
the research study with proper considerations. The deductive approach is vastly focusing on such
hypothetical values that have the significant impact on the research process. Hence, it can be
inferred that the application of the deductive approach is quite justified for this particular
research study.
3.3 Research Design
Selection of the research design depends on the fruitful techniques that direct the research
process in a significant way. The research designs or techniques are categorized into three
different methods, such as exploratory, explanatory, and descriptive (Bell and Waters 2014).
The exploratory research is defined as the initial state of a research into and theoretical or a
hypothetical idea. The researchers often observe the subject matter and seek the adequate
information to complete the entire process. The exploratory research techniques help in
exploring the new ideas and developing the considerable factors for the research subject. On the
other hand, the explanatory techniques attempt to connect the ideas for understanding the causes,
effects, and relative meanings for explaining the scenario. The structured and systematic
explanation of the underlying theme is necessary for applying this particular technique to
conduct the research process (Blunch 2013). The descriptive design attempts to explain and
explore the ideas gathered from the research process. This descriptive design is applied when
there is the requirement of the additional information. The judgment is based on the descriptive
presentation of the information collected from a considerable amount of population. The study
deals with the descriptive design for analyzing the collected data.
38

3.3.1 Justification of Selecting Descriptive Design
It has been observed that the study deals with a considerable amount of the customers
who prefer to purchase the grocery products through online sources. The responses collected
from the people who have been experiencing the real life scenario are needed to be analyzed. It is
essential to identify the additional information obtained from the responses of the selected
respondents. The descriptive design explores and explains the perceptive values of the customers
in UAE in terms of purchasing the online grocery products. The identification of the business
demands and preferences of the customers is analyzed appropriately with the help of the
descriptive techniques. Hence, the use of the descriptive design is appropriate for this research
study.
3.4 Data Collection Process
Application of the proper data collection method is necessary to conduct the research
study in a structured process. The study is based on the business planning method of establishing
the online grocery shop in United Arab Emirates. It has been observed that the online sources are
much preferable to the customers in UAE. However, it is still necessary to develop the adequate
ideas about the market feasibility and acceptability to establish the business entity. Along with
the extensive market research, it is also necessary to gather the ideas about the real scenario and
the perception of the customers. Hence, the study deals with the mixed method process in which
both the primary and secondary information is needed to be included.
3.4.1 Secondary Data Collection Process
The study concentrates on the extensive market research that would determine if the
business has the suitability to build the online presence in United Arab Emirates. Moreover, the
39

study requires identifying the business scope by indentifying the current market status and
perceptive values of the stakeholders. The secondary data collection process is defined as the
procedure of collecting the relevant information from the secondary sources (Cohen and Cohen
2013). In order to conduct the secondary data, the necessary information required for analyzing
the scenario of this study is collected from the books, journals, and websites. These secondary
sources of the data are providing the insightful knowledge about the market conditions and
influence that are helpful in judging the business suitability. Based on the information gathered
from these sources, the further primary research is conducted. The information is useful for
analyzing the information and linking at the end.
3.4.2 Primary Data Collection
The primary data collection process is defined as the procedures in which the information
is collected by gathering the responses of the people who have been experiencing the real life
scenario. The case study follows the structured business plan for developing the online presence
of grocery shop in United Arab Emirates. The business development plan is based on the
suitability of the demands of the business in a particular region or country. People who have
been dealing and experiencing the real life in terms of purchasing the grocery products through
online sites are the much considerable factors in this case. The primary data collection process
helps in collecting the responses of the real life participants. Their preferences are necessarily
needed to be taken into account. The development of the ideas regarding their needs and
demands would suggest the business the key activities that can create the significant impact. The
primary data collection process is categorized into two types, such as quantitative data
collection process and qualitative data collection process.
40

3.4.2.1 Quantitative Data Collection Process
The quantitative data deal with the subjective values, quantities, and numbers. The
quantitative data is always measurable due to which such data is often presented by considering
the numerical values (Collis and Hussey 2013). The quantitative data collection process adds the
credibility or credence due to which it is much reliable and objective. In this particular research
study, the quantitative data collection would be applied by conducting the survey process among
50 customers from United Arab Emirates. These customers are purchasing the grocery products
from the online sources quite often and they perceive their diverse demands while purchasing
these products. The questionnaires are distributed among these customers randomly. The
questionnaires include the multiple choices of questions from which the customers need to select
their preferences. The total number of responses is the quantitative responses that are necessary
for this research process.
3.4.2.2 Qualitative Data Collection Process
The qualitative data depends on the quality parameter of the collected information. This
data often based on the descriptive rather than the numerical values (Creswell 2012). Unlike the
quantitative responses, the qualitative data is not measurable (Corbin and Strauss 2015).
However, in this process, it is essential to pay the closer attention and observation pt the
responses. In this type of the data collection process, the interview process is undertaken among
the managers of the companies that have the online business presence. These respondents have
been dealing with the customers and therefore they are quite knowledgeable about their needs
and preferences. The responses are quite relevant for conducting the study with proper
justification. In this study, the research process is focusing on undertaking a telephonic interview
41

session with 3 managers of the online grocery companies in United Arab Emirates. The
responses of the managers ensure the gaps and challenges that the business marketers usually
face while dealing with the customers through online sites. Moreover, the responses also help in
identifying the key activities that are needed to be undertaken for dealing with the customers
while selling the grocery products to the customers. Hence, the qualitative data collection
process is much necessary for collecting the primary data for this research purpose.
3.5 Sampling Method and Sampling Size
Sampling techniques determine the procedure of selecting the number of respondents for
each quantitative and qualitative data collection purposes (Dancey and Reidy 2014). There are
two types of the sampling procedures followed during the research process. The first process is
probability, simple random technique that is used for conducting the survey process among a
particular number of the participants. Therefore, this probability sampling technique is generally
used for collecting the quantitative data. On the other hand, the non-probability, convenience-
sampling technique is the procedure of deriving information as per the convenience and
preferences of the respondents (Field 2013). This type of sampling technique is used for
obtaining the quality knowledge from the research activities. Therefore, the non-probability
sampling technique is used during the qualitative data collection session.
In this particular research study, the quantitative data would be collected among 50
customers from United Arab Emirates. These customers are purchasing the grocery products
from the online sources quite often and they perceive their diverse demands while purchasing
these products. On the other hand, the interview session in the qualitative data collection process
would be undertaken among 3 managers from the different online retail stores in UAE.
42

3.6 Data Analysis Method
The information for the particular research depends on the systematic and effective
method of analysis (Gray 2013). The proper analysis of the collected data leads the systematic
research process that is much fruitful for the entire study. In this research process, the data
collected from the quantitative survey process would be analyzed through the utilization of the
different statistical tools and software, such as MS Excel. The responses derived from the survey
present the real scenario and demands of the customers while purchasing the grocery products
through online sites. This statistical data would be presented in a structured form of graphs and
tables (Pallant 2013). This graphic and tabular presentation of the data is much attractive and
easy to understand. On the other hand, in order to analyze the collected information from the
qualitative interview process, the researcher can use the interpreter for memorizing the
conversation. However, it is necessary to observe the perception of the respondents through the
voice modulations.
3.7 Accessibility Issues
While conducting the research data by conducting quantitative and qualitative process,
some of the specific issues are also much recognizable. It is not an easy approach to conduct the
data and present it for completion of the project. Numerous accessibility issues are needed to be
taken into account. The most identified issue is the biased responses of the participants. It is quite
difficult to analyze the bias responses since it does not clarify the actual perceptions of the
respondents. On the other hand, the lack of updated scenario is also one of the most considerable
factors that affect the research study. It is necessary to develop the adequate ideas about the
current scenario that has the clear impact of the consumer behavior. Hence, the accessibility
issues are quite recognizable in this research.
43

3.8 Ethical Consideration
Maintenance of the ethical responsibilities is the primary focus of a research study. It is
necessary to consider some of the ethical concerns that have the higher impact on the research
process. These considerations are stated below:
 The respondents would not be persuaded for responding to the questions. They need to
get the full liberty to answer as per their convenience and comfortable level.
 The questions would not include any offensive and unethical description that may affect
the morale of the respondents.
 As per the Data Protection Act 1999, the information would not be revealed to any other
researchers (Patton 2015). The names of the participants would be anonymous and their
identity would be hidden.
 The information collected from this research process would be used for this particular
research and would not be used for any future research.
 The respondents can withdraw their answers at any point of time.
 The information collected from the secondary sources need to be updated.
 The secondary sources for the data collection should be authentic.
These considerations are necessary for developing a structured research study. It is essential
to maintain these rules and norms while conducting the primary data collection process. Based
on these considerations, the entire research study would be completed.
3.9 Time Schedule
Main activities/ stages Month
February
Month
March
Month
April
Month
May
Month
June
Month
July
44

Topic Selection 
Data collection from secondary
sources
 
Framing layout of the research 
Literature review   
Formation of the research Plan  
Selection of the Appropriate
Research Techniques
 
Primary data collection  
Analysis & Interpretation of
Data Collection
 
Conclusion of the Study 
Formation of Rough Draft 
Submission of Final Work 
Table 3.1: Timeline
(Source: Created by the Author)
3.10 Summary
The chapter provides the clear description of the appropriate methodologies that are
needed to be applied for conducting the entire research process. These methodologies are useful
for conducting the research in a systematic way. The use of the relevant research philosophy,
approach, and techniques is identified in this chapter. The justified data collection process and
analytical method is also discussed. Depending on the ethical parameter, the entire research is
45

needed to be conducted. With the help of such methodological approaches, the further data
collection and analysis process would be determined.
46

Chapter 4
Data/Results analysis
4.0 Introduction
After collecting the required data, the researcher moves on to the task of analyzing the
collected data. The researcher abides by the methods of data analysis-primary quantitative and
qualitative. As a matter of specification, this chapter has been divided into two parts. The first
part deals with the quantitative data, where the responses provided by the samples are analyzed
through the means of tables and graphs. However, in case of the qualitative data, the responses of
the managers are analyzed through the help of the tabular data entries. Finally a summary is
provided, which enhances the clarity of the readers regarding the major activities of the chapter.
4.1 Part A Survey
Quantitative data
Q1. What is your gender?
Options Response frequency (%) No. of responses Total respondents
Male 30 15 50
Female 70 35 50
47

Table 4.1: Gender of the customers
Male
Female
0
10
20
30
40
50
60
70
30
70
Gender of the customers
Graph 4.1 Gender of the customers
Analysis: The above table represents the gender specification of the customers. Out of
the 50 customers, 35 are female. The percentage for this is 70%. On the contrary, 30%, that is 15
of the 50 customers are male. This discrepancy indicates that females prefer online shopping
more than the male customers. Viewing it from the other perspective, the percentile of the
genders aligns with the stereotypical connotation regarding the females catering to the household
needs. Countering this, in the 21st century, the chefs are mainly male, which breaks this
stereotypical notion. This indicates that a tough battalion between the male and female customers
regarding the possession of quality, fresh and healthy groceries. In this, the females would
emerge as winners as they are very particular about the quality of the products, which they
receive, be it online or by visiting personally to the stores. This consciousness is missing in most
of the male customers, however, not all male customers expose lackadaisical attitude towards
ensuring the quality, freshness and health factor of the groceries. Therefore, health issues and
quality factor are one of the most important factors, which would help the company personnel to
48

avert encountering complaints especially from the female customers. Failure in terms of
fulfilling the needs, demands and requirements of the customers, irrespective of male or female
would degrade limit the scope and arena of the concept of online shops.
Q2. Since how long are you purchasing products online?
Options Response frequency (%) No. of responses Total no. of responses
0-3 months 10 5 50
3-6 months 20 10 50
6 months-1 year 30 15 50
More than 1 year 40 20 50
Table 4.2: Durability of the customers regarding the online purchases
10
20
30
40
Durability of the customers regarding
the online purchases
0-3 months
3-6 months
6 months-1 year
More than 1 year
Graph 4.2 Durability of the customers regarding the online purchases
Analysis: The above table projects the durability of the customers about the purchases
made online. The time span is from 0-3 months to more than 1 year. Pondering on the data
entries, 5 out of 50 customers, that is, 10% are purchasing products online for 0-3 months. For
49

the time span of 3-6 months, 10 out of 50 customers, that is, 20% are making online purchases.
15 out of 50 customers, that is, 30% are purchasing products from online. In case of 20 out of 50
customers, that is, 40% of the customers are purchasing online products for more than one year.
The data entries of the table signify that most of the customers are experienced in terms of
making online purchases, so briefings regarding the specifications of the online grocery shops
would help them with making the purchases. Countering this, the customers who are purchasing
online groceries can also be considered experienced. 6 months might be less; however, it is
enough for gaining insight into the advantages and disadvantages of purchasing groceries online.
The customers experienced in online shopping for 3-6 months needs more briefing about the
specifications of online purchases. Countering this, the customers making online purchases for
less than 3 months are in need of detailed briefings regarding the specifications of the online
grocery services. After reviewing the experiences of the entire time span, the customers who are
making online purchases would be profitable for the companies and organizations in terms of
bringing innovations in the online services.
Q3. Are you satisfied with the current performance of the online shopping services?
Options Response Frequency
(%)
No. of responses Total no. of responses
Yes 30 15 50
No 20 10 50
Neutral 50 25 50
Table 4.3: Satisfaction of the customers regarding the current performance of the online
shopping services
50

30
20
50
Responses regarding the current
performance of the online shopping
services
Yes
No
Neutral
Graph 4.3 Response of the customers regarding the current performance of the online
shopping services
Analysis: The above table reflects the satisfaction level of the customers regarding the
current strategic performance of the online shopping services. According to the data entries, 15
out of 50 customers, that is, 30% are highly satisfied with the online services, which they are
getting. On the other hand, 10 out of 50 customers, that is, 20% are not at all satisfied with the
current online services, which the brands are providing. Along with this, half of the customers
remained neutral in response to the proposed question of their satisfaction in terms of the online
services. The responses of the customers indicate the need of coming out with something
innovative, which would align with the specific tastes and preferences of the customers. The
neutrality of the customers reflects the adoption of liberal attitude towards responding to the
proposed questions. As the majority of the customers are not satisfied with the current
performance of the online services, there is a need for oriental approach towards the launch of
online grocery shops. Constructing plans and evaluating the proposed plans would bring to the
51

forefront the major drawbacks, spontaneous modification of which would upgrade the standard
and quality of the online services.
Q4. Do you think the online shop would satisfy your dream of purchasing branded products?
Options Response frequency (%) No. of responses Total no. of respondents
Yes 60 30 50
No 10 5 50
Neutral 30 15 50
Table 4.4 Satisfaction of the customers regarding online services fulfilling their dream of
possessing branded products
60
10
30
Responses regarding online services
fulfilling the dream of possessing
branded and quality products
Yes
No
Neutral
Graph 4.4 Satisfaction levels of the customers regarding online services fulfilling their
dreams of possessing branded products
Analysis: The above table projects the satisfaction levels of the customers regarding their
dream of possessing branded products, which in this case are the groceries. According to the data
of the table, 30 out of 50 customers, that is, 60% think that online services would make their
52

dreams of purchasing branded products successful. On the other hand, mere 5 out of 50
customers think that online services would deceive them of quality products. This denial projects
the preference over personal visits to the stores, speculating them and buying them after a
thorough review of all the related factors. However, majority of the customers remained neutral
in this question. This is due to fear of leaking their answers to the other parties. This fear is
absolutely natural in terms of the increased cyber crimes, which have stalled the productivity of
the current online services. Herein lays the appropriateness of Data Protection Act (1998), which
if used appropriately would assure the customers of the utilization of their answers only for the
research purpose rather than for commercial purpose.
Q5. What are the factors, which you look for while making online purchases?
Options Response Frequency
(%)
No. of responses Total number of
responses
Quality 10 5 50
Security 20 10 50
Customer service 40 20 50
Affordability 30 15 50
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Table 4.5 Important factors for the customers while making online purchases
Quality Security
Customer service
Affordability
0
5
10
15
20
25
30
35
40
10 20
40
30
Important factors for the customers
while making online purchases
Graph 4.5 Important factors for the customers while making online purchases
Analysis: The above table projects the important factors, which plays an important role
for the customers while making online purchases. As a matter of specification, the factors
underpinned are quality, security, customer service and affordability. 5 out of 50 customers, that
is, 10% prefer quality while making online purchases. 10 out of 50 customers look for security
during the process of online shopping. On the other hand, 20 out of 50 customers, that is, 40%
are conscious towards the customer services provided by the companies and organizations in the
online services. Along with this, 15 out of 50 customers, that is, 30% prefer affordability while
making online transactions. After reviewing the responses, it can be said that majority of the
customers prefer quality customer service. For this, skilled and efficient customer care
executives need to be hired for providing quality services to the customers. Countering this,
within the customer service, the factors of quality, security and affordability is included.
Conscious attitude of the personnel towards the wellbeing of the customers would result in the
provision of quality service to the customers. This consciousness would act as an agent in
54

introducing lucrative deals, trades and transactions, which would be an effective example of B2B
business. Herein lays the need for indulging in stable relationship with the stakeholders and
shareholders, which can be done through the means of contracts.
Q6. Do you prefer online shopping or personal visits to the shops for purchasing groceries?
Options Response frequency (%) No of responses Total no of responses
Online services 80 40 50
Store visit 20 10 50
Table 4.6 Preference of online shopping over store visits
80
20
Responses for online services over
personal visits
Online services
Store visit
Graph 4.6: Preferences of customers regarding online grocery purchase and store visits
Analysis: The table reflects the preference of the customers over online shopping over store
visits for purchasing the basic needs such as grocery. As per the entries of the table, 40 out of 50,
that is, 80% of the customers prefer online services, even for purchasing the monthly grocery. On
the other hand, the rest of the 20%, that is, 10 out of 50 customers prefer making physical
presence at the stores, speculating their quality and other specifications and then buying the item
55

if it matches with their requirements. Countering this, the table seems unnecessary in terms of
analyzing the response of the customers towards the proposed question. The questions relating to
the experience in online shopping and the considered factors for making online purchases is itself
an answer to the proposed question. In other words, receiving quality and standardized customer
service in online purchases for more than one year is enough to conclude that the people prefer
online services over the personal store visit. Herein the role of the personnel in terms of
providing quality customer services initiates. Delving deep into the aspect, this question brings
out the relationship between the employees and the managers. One wrong step stains this
relationship.
Q7. What are the services, which you want from the company for achieving quality grocery
products online?
Options Response frequency (%) No. of responses Total no of responses
Customer service 80 40 50
Quality 4 2 50
Health factors 6 3 50
Security issues 10 5 50
56

Table 4.7 Response of the customers regarding the presence of essential factors for
receiving quality products
80
4
6 10
Response of the customers
regarding the presence of essential
factors for receiving quality products
Customer service
Quality
Health factors
Security issues
Graph 4.7: Response of the customers regarding the presence of essential factors for
receiving quality products
Analysis: This table can be considered as an extension of the previous table. The
previous table deals with the elements of the buying behavior of the customers regarding the
online purchases. On the other hand, the current table consists of providing shape to these
elements by placing these requests to the company or organizations. According to the data
entries of this table, customer service is the most wanted element for 40 out of 50 customers, that
is, 80%. Optimizing the search, 2 out of 50 customers, that is, 4% want quality as one of the
elements while making online transactions for purchasing groceries. Yet on the other hand, 6%
of the customers, that is, 3 out of 50 customers need consideration towards the health issues
while making online transactions regarding the grocery services. Herein lays the need for
uploading the nutrient and calorie content in the fruits, vegetables and other grocery items. One
of the other important search factors is security. This is important in terms of the increased level
57

of cyber crimes, which has compelled the customers to lose their personal data and information
stored with the company and organizations. Therefore, out of all the needed factors, customer
service is the most important one in terms of escalating the sales revenue and adding maximum
value to the profit margin. Here, social media itself becomes an agent in terms of increasing the
trafficking of the audience towards the brand image.
Q8. Why would you prefer purchasing grocery products through online sites?
Options Response frequency (%) No. of responses Total number of
responses
Protection from sun
exposure
10 5 50
Unwillingness to get out
after a hard day’s work
60 30 50
Desire towards leading
a sophisticated lifestyle
30 15 50
Table 4.8 Reasons why customers prefer to buy grocery items online
10
60
30
Reasons why customers prefer to
buy grocery items online
Protection from sun
exposure
Unwillingness to get out
after a hard day’s work
Desire towards leading a
sophisticated lifestyle
58

Graph 4.8: Reasons why customers prefer to buy grocery items online
Analysis: The table projects the preference factor for the customers regarding the online
grocery purchases. According to the entries of the data, 5 out of 50 customers, that is, 10% prefer
to buy groceries online in order to avert sun exposure. This reflects the dry and humid climate of
United Arab Emirates. Along with this, 30 out of 50 customers, that is, 60% prefer to buy online
service due to the tiredness, which they encounter after a hard day’s work. Apart from this, the
table also projects the preference of online purchases of 15 out of 50 customers, that is, 30% due
to the longing for a sophisticated lifestyle. This reflects the boredom, which takes a higher
position as compared to doing something creative. Delving deep into the factors, dry humid
climate increases the unwillingness of the customers regarding going to the stores and
purchasing the grocery items. Adding the drab monotony of everyday’s work, the complexities
regarding going to the stores and purchasing the items are aggravated. Countering this, sun
exposure in this dry climate is a matter of serious concern in terms of customers’ health.
Therefore, in such a scenario, online services would be an effective means for both the personnel
and the customers in terms of satisfying their needs, demands and requirements.
Q9. How far are you satisfied with the online transaction services available in the ecommerce
sites?
Options Response Frequency
(%)
Number of responses Total no of respondents
Highly satisfied 20 10 50
Satisfied 10 5 50
Neutral 6 3 50
Dissatisfied 40 20 50
59

Highly dissatisfied 24 12 50
Table 4.9 Satisfaction of the customers regarding the online services of the ecommerce sites
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
0
5
10
15
20
25
30
35
40
45
20
10 6
40
24
Satisfaction of the customers
regarding the services of the
ecommerce sites
Graph 4.9 : Satisfaction of the customers regarding the services of the ecommerce sites
Analysis: The above table projects the satisfaction of the customers regarding the online
services provided by the different ecommerce sites. According to the projections of the likert
scale, 10 out of 50 customers, that is, 20% are highly satisfied with the current online services of
the ecommerce sites. 5 out of 50 customers, that is, 10% are just satisfied with the services
current delivered by the various ecommerce sites. Along with this, merely 3 out of 50 customers
remained neutral to the proposed question of being satisfied with the current services of the
ecommerce sites. Apart from this, the table also projects the dissatisfaction of 20 out of 50
customers, that is, 40%. 12 out of 50 customers, that is, 24% of the customers are highly
dissatisfied with the online services, which they get from the different ecommerce sites. From the
entries of the table, it can be said that majority of the customers are dissatisfied with the online
services provided by the ecommerce sites. In such a situation, rational and conscious attitude is
60

needed for launching the online grocery shops, as quality and security factors might get
compromised.
Q10. Which of the following sites do you prefer purchasing grocery products from?
Options Response frequency (%) No of responses Total number of
respondents
Trolley.ae 6 3 50
Grocery online 10 5 50
Supermart.ae 80 40 50
Others 4 2 50
Table 4.10 Preferred online sites for purchasing grocery items
Trolley.ae Grocery online Supermart.ae Others
0
10
20
30
40
50
60
70
80
90
6 10
80
4
Preference of online sites for buying
grocery items
Graph 4.10: Preference of online sites for purchasing grocery items
Analysis: The above table represents the preferred online sites among the customers for
purchasing the grocery items. According to the entries of the table, 3 out of 50 customers, that is,
6% prefer Trolley.ae for purchasing grocery items. On the other hand, 5 out of 50 customers, that
61

is 10% choose to buy groceries from Grocery online. Majority of the customers, that is, 40 out of
50 customers, 8% desire to buy groceries from Supermart.ae. 2 out of 50 customers, that is
merely 4% of the customers prefer the other online sites for buying grocery items. Diversified
options among the customers regarding the online sites for purchasing grocery items reflects
tough competitions between the brands regarding the provision of quality online services to the
customers. Ensuring the wellbeing of the customers would help the brands to secure their market
position in the ambience of the competition.
4.2 Part B Qualitative data
Interview with the managers
Q1. To what extent do you think online grocery shops are profitable for the customers of United
Arab Emirates?
Analysis- The first manager is of the view that online services regarding the purchase of
the grocery items would be profitable for the general public of United Arab Emirates. This is in
terms of their ease and comfort and relaxation after a hard day’s pressure. According to the
second manager, online grocery shops would be extremely beneficial for the women customers,
as they would be able to devote equal time to the other tasks. However, on the other hand, the
third manager is of view that personal visits to the stores would help the customers to check the
item thoroughly and then buy it as per the requirements.
Q2. What are the challenges, which you are facing in providing the option of online grocery
shops?
62

Analysis- The first manager spoke of the cyber crimes, which is restricting the customers
from indulging in online transactions. The second manager added to the statements of the first
manager, saying that cyber crimes has affected the financial parameter, resulting in the loss of
financial data, budgets among others. However, third manager spoke one of the other features of
cyber crimes- interference of the third party in between the transactions. Third managers gave
specific examples of these interferences- customers receiving emails and requests from unknown
email IDs. This is also the case with the own organizational activities.
Q3. What are the considerable factors, which you would give to the customers of United Arab
Emirates through online grocery shops?
Analysis- The first manager opined that they would provide online services to the
customers at low price. This would influence the purchasing power of the customers, especially
those belonging to the middle class. The second manager spoke of the high quality, which would
be taken extra care. He informed about the quality tests and inspections, which would help them
to ensure the wellbeing of the customers. The third manager shed light upon the security
software, which would be adopted to detect the presence of virus, hacker interventions and
malfunctions within the websites.
4.3 Summary
This chapter enhances the clarity of the readers in terms of the analysis of quantitative
and qualitative data. Survey of the customers reveals that they need quality customer service
along with security assurance for indulging in online transactions. On the other hand, the
responses of the managers indicate the plans for installing security software in the profiles of the
customers’ for maintaining the security, safety and privacy of the customers’ personal data.
63

Chapter 5
Conclusion and Recommendation
5.0 Conclusion
The chapter summarizes and concludes the outcome of the entire research process. The
research was based on the establishment of the online grocery shop in United Arab Emirates. It
has been observed that the online grocery market of United Arab Emirates is much competitive.
The increasing demands of the sophisticated lifestyles and healthier diets are influencing the
consumer purchasing behaviour. The consumers are much fond of online grocery shopping
instead going out for shopping after a log working hours. Moreover, the extreme heat and long
traffic are also responsible for the customers of being reluctance in going out. Therefore, the
online shopping sites are increasing much significantly. This chapter would provide the linking
between the information derived from literature review and the primary data collection process
and the research objectives. Depending on this discussion, the chapter would also provide the
preferable recommendation for the business in establishing in the online market of United Arab
Emirates.
5.1 Linking Objectives with Literature Review and Primary Data Information
It is necessary bridging the research objectives with the information derived from both
the primary and secondary data collection process. The outcome of this discussion would
determine whether the research study has accomplished the objectives determined previously.
Objective 1: To identify the online grocery trends among the customers in United Arab
Emirates
64

The business establishment depends on the market acceptability of the online grocery
shop in United Arab Emirates. It is important to understand the trends of the customers in terms
of purchasing the grocery products online prior to develop any business plan. As per the
information derived from the literature review section, it has been specified that the customers in
United Arab Emirates prefer the emerging sophisticated trends of online shopping is much
preferable to the UAE customers. On the other hand, the obtained data from the primary data
collection process is also pointing out that the customers prefer shopping the grocery products
through online sites instead of going out of their house after longer working hours. Moreover, the
outside heat in the dessert region and long traffic are also making the customers unwilling to go
out for the shopping. Therefore, it is quite noticeable that the online grocery shopping is quite an
emerging trend among the customers of United Arab Emirates.
Objective 2: To provide the detailed analysis of the market opportunities and demands for
establishing the online grocery shops
The influence of the external market is the most considerable factor in establishing the
business in a country. The information derived from the literature review study, it was noticed
that the UAE customers are much fond of consuming the healthy products that are sometimes not
available in the market. The availability of the filter search option in the online grocery shop
influencing the customize search of the customers. The customer can easily opt for the products
as per their preferences. On the other hand, the primary research specifies that the customers in
UAE prefer the high quality products with lower price since the income level is fixed. The prices
of the grocery products in online sites are comparatively lower. Hence, the business has the
significant market opportunity to establish online grocery shop.
65

Objective 3: To determine the potential gaps in establishing the online grocery shops in United
Arab Emirates
The challenges in the business market is the most specific and important aspects for the
business startup. It is necessary to find the gaps and the loopholes that may prevent the business
from establishing the presence for a longer sustainability. The information received from the
literature review section determines that the lack of proper online security is somewhat creating
the reliability issues among the potential customers. Moreover, the extreme competitive online
market is also the major challenge for the business setup. The obtained idea from the primary
data collection process signifies the similar market condition. The lack of secure gateways is
making the online purchase quite difficult to the UAE customers. The customers become
insecure in providing their confidential banking details over the internet while transacting their
bills. Hence, these challenges are needed to be minimized for establishing a secure and
strengthened business position.
Objective 4: present the preferable recommendations in resolving the emerging difficulties
experienced during the establishment of online grocery shop
The above description helps in identifying the major determinants found after conducting
the entire research process. In order to minimize such probable risks, the following
recommendations are provided.
5.2 Recommendations
The establishment of the online grocery shop in United Arab Emirates requires
considering some of the potential challenges. In order to minimize these determinants, some of
the suitable recommendations are provided below:
66

1. In order to minimize the risks of the online security during the transaction process, the
company may develop the malware functioning that can prevent the hacker from stealing the
information. In such cases, the customers would receive the alert report whenever the
confidential data would be accessed through the unauthenticated or unsolicited server.
2. The development of the effective marketing promotions would be much preferable in
attracting more customers towards the online products. The effective design, accessible shopping
specifications, user-friendly filter search, and informative websites are much preferable for the
customers. Along with these facilities, it is even essential to provide certain discounts to the
customers for generating more preferences.
3. The improvement of the customer services and delivery services would be much beneficial for
the company to gather more number of customers.
5.3 Future Scope of the Research
The information gathered from the primary and secondary data collection process
signifies the market trends of the online grocery shop in United Arab Emirates. The collected
information from this data collection process can be used as the secondary information for the
future similar studies. The information received from the customers and managers in the primary
data collection process can also be used as the source of secondary data in future study related to
the similar subject.
67

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Appendix
Appendix
Survey Questionnaire
Q1. What is your gender?
 Male
 Female
Q2. Since how long are you purchasing products online?
 0-3 months
 3-6 months
 6 months-1 year
 More than 1 year
Q3. Are you satisfied with the current performance of the online shopping services?
 Yes
 No
 Neutral
Q4. Do you think the online shop would satisfy your dream of purchasing branded products?
 Yes
 No
 Neutral
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Q5. What are the factors, which you look for while making online purchases?
 Quality
 Security
 Customer service
 Affordability
Q6. Do you prefer online shopping or personal visits to the shops for purchasing groceries?
 Online shopping
 Personal visits
Q7. What are the services, which you want from the company for achieving quality grocery
products online?
 Customer service
 Quality
 Health factors
 Security issues
Q8. Why would you prefer purchasing grocery products through online sites?
 Protection from the sun exposure
 Unwillingness to get out after a hard day’s work
 Desire towards leading a sophisticated lifestyle
Q9. How far are you satisfied with the online transaction services available in the ecommerce
sites?
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