Perceived Affordability and Demand Dynamics in Quick Commerce: Evidence from Generation Z and Millennials in Gujarat

The fast growth of quick commerce apps has revolutionized the urban retail system of India. This paper will investigate the impact of perceived affordability on the demand of quick commerce services among the generation Z and Millennials in Gujarat. Primary data were collected using a descriptive quantitative research design and a structured questionnaire was used to collect data in 200 respondents in six cities; Gandhinagar, Ahmedabad, Surat, Vadodara, Rajkot and Dahod. Probability sampling was not accepted and analysis of data was done using SPSS. The results indicate that perceived affordability is a significant issue impacting on the purchase frequency and platform choice. Although speed and convenience are motivational to users, more importantly in demand formation are cost-efficiency, delivery fee and promotional offers. Affordability to young consumers is beyond the low prices to the general transaction convenience and to digital experience. Though the adoption is better in large urban centres, Tier 2 cities also have significant growth potential as long as the issue of pricing is well tackled. The research is based on the Consumer Value Theory [10] in placing affordability within a multidimensional construct multidimensional construct of functional, emotional, and conditional value. These conclusions have strategic implications to the operators of the platform who may want to gain competitive advantage based on pricing, special promotions and digitally enhanced customer interaction.