Impact Of Quick Commerce on Changing Customer Expectations in Grocery Retail

Abstract

Grocery retail has been revamped in terms of speed, convenience, and service quality due to the increase of quick commerce (Q-commerce). This paper focuses on the impact on consumer behaviour and how these changes impact service benchmarks as a result of Q-commerce's ultra-fast delivery models available from different Q-commerce platforms. Data for this descriptive study was collected via a structured survey from 250 respondents, the majority of whom (74.8%) were within the 18–25-year-old demographic. Q-commerce was therefore found to already have widespread adoption among young, tech-savvy consumers. Data was analysed using descriptive statistical analysis tools in Excel.

The results show that Q-commerce has greatly increased consumer hopes of delivery speed with most consumers now wanting their delivery to be completed within 10 - 20 minutes; consumers also view the convenience of the quick/instant ordering, time from placing order to receiving it (instant), and real-time response as part of what defines a convenient service. While speed and convenience are key factors in Q-commerce usage, custom price sensitivity, product quality, and trust are still very important considerations for making a purchase decision and developing long term customer loyalty. Delivery challenges still exist (late deliveries, wrong items or missing item), and rider safety concerns will remain; however, consumers surveyed indicated high levels of overall satisfaction and willingness to use Q-commerce in the future, thus indicating an ongoing presence and market potential for Q-commerce moving forward.

The conclusion of this study is that consumer expectations for grocery retail experience has changed and made Q-commerce the industry standard. As a result, grocery retailers (traditional/brick and mortar) are under pressure to innovate ways to compete with Q-commerce service providers, and Q-commerce service providers (the platforms) will need to continue to find ways to improve accuracy and competitive pricing, quality control, and ethical delivery practices. While sample size and geographic concentration limitations were identified, further research across the entire demographic range and broad geographic coverage is recommended so as to have a better understanding of how consumers are continuing to evolve in their purchasing behaviours.