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Choice of prevailing delivery methods in e-grocery: a stated preference ranking experiment

Choice of prevailing delivery methods in e-grocery: a stated preference ranking experiment The main purpose of this research is to investigate acceptability of different delivery methods in e-grocery (home delivery, pick-up from store, pick-up from locker) and the respective willingness of customers to pay for them using a stated preference ranking experiment.Design/methodology/approachData collected involved two countries (Greece and UK) with different level of e-grocery development and two different distribution conditions (weekly and urgent order). Rank-ordered logit model is used to analyse the ranking experiment and calculate the willingness-to-pay (WTP) measures. Delivery mode, cost and time window are used as independent variables.FindingsResults indicated that home delivery and picking-up from locker appear to be clearly preferable than picking-up from store. However, home delivery seems to hold a stronger competitive position over the other delivery methods, especially in the weekly order and in the UK market. The pick-up from locker option appears to be a competitive delivery mode for consumers who are cost sensitive and shop under urgent conditions. Willingness to use and pay for picking-up from locker increases significantly in the context of same-day delivery.Practical implicationsThe information provided in this study will help retailers to design and implement distribution schemes that can meet consumers' preferences for e-grocery. WTP differences among the consumer groups and the distribution conditions examined can have a considerable impact on the evaluation of marketing and pricing strategies applied by e-retailers.Originality/valueConsumer preference and the respective WTP for different delivery methods in e-grocery, especially for the pick-up from locker option, have not been systematically investigated. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Retail & Distribution Management Emerald Publishing

Choice of prevailing delivery methods in e-grocery: a stated preference ranking experiment

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References (34)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0959-0552
DOI
10.1108/ijrdm-08-2019-0260
Publisher site
See Article on Publisher Site

Abstract

The main purpose of this research is to investigate acceptability of different delivery methods in e-grocery (home delivery, pick-up from store, pick-up from locker) and the respective willingness of customers to pay for them using a stated preference ranking experiment.Design/methodology/approachData collected involved two countries (Greece and UK) with different level of e-grocery development and two different distribution conditions (weekly and urgent order). Rank-ordered logit model is used to analyse the ranking experiment and calculate the willingness-to-pay (WTP) measures. Delivery mode, cost and time window are used as independent variables.FindingsResults indicated that home delivery and picking-up from locker appear to be clearly preferable than picking-up from store. However, home delivery seems to hold a stronger competitive position over the other delivery methods, especially in the weekly order and in the UK market. The pick-up from locker option appears to be a competitive delivery mode for consumers who are cost sensitive and shop under urgent conditions. Willingness to use and pay for picking-up from locker increases significantly in the context of same-day delivery.Practical implicationsThe information provided in this study will help retailers to design and implement distribution schemes that can meet consumers' preferences for e-grocery. WTP differences among the consumer groups and the distribution conditions examined can have a considerable impact on the evaluation of marketing and pricing strategies applied by e-retailers.Originality/valueConsumer preference and the respective WTP for different delivery methods in e-grocery, especially for the pick-up from locker option, have not been systematically investigated.

Journal

International Journal of Retail & Distribution ManagementEmerald Publishing

Published: Jan 26, 2021

Keywords: e-grocery; Click-and-collect; Delivery methods; Willingness to pay; Same-day delivery; Pick-up from locker

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