Survey data analysis: We conducted an online survey and had 121 respondents from different US cities. Most of them did not use Peapod for their grocery shopping (Appendix A)

* Attributes important for choosing Grocery Items: From our findings, we could find that most of the people cared about past experience at the store and price for choosing their grocery stores (Appendix B). Also the other major factors were nutritional information and looks of the items. Therefore, making the grocery experiences better and optimizing prices for the consumers could play an important role in the improvement of retention rate. Surprisingly people did not care about novelty aspect that usually is one of criteria’s to go for grocery shopping.

* Attributes to choose the grocery destination: In order to segment the customers who might have different preferences for choosing the grocery destination, we did a cluster analysis (Appendix C) to perform the segmentation, but there was not much difference between the clusters and almost all of them across the three clusters chose – proximity, prices and quality as the important criteria. The good news for Peapod is that consumers do not care about touch and new products discovery while choosing their shopping destination. We also segmented customers into three categories – Non-peapod users, Peapod users and users who stopped using it to see if there are any differences in the preferences they might have (Appendix Heat-map) but they also consistently ranked proximity, price and quality as their top criterias.

Cluster distribution

Segmentation

* Difference between Peapod and Local grocery description: The other most important thing we wanted to measure was to see the difference between how people rate the Peapod experience and how they rate the local grocery store (Appendix D). And we found that