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Bricks or clicks? Consumer channel choice and its transport and environmental implications for the grocery market in Norway
Abstract E-grocery is the fastest growing e-commerce segment, while still a niche market. Notwithstanding the channel choice when buying groceries might have relevant transport and environmental implications, little attention is paid to demand analysis. The paper fills this research gap, by using stated preferences to estimate market shares for e-grocery, distinguishing between home deliveries and click&pick, using the in-store option as a reference, and by considering a case study in Norway. It investigates the role of various purchase characteristics (i.e. product price, service cost, lead-time, time window, travel time and product range) when choosing which purchase channel to use. Results suggest that the most important characteristics for consumers are related to price, in particular product price, but there is also significant heterogeneity in preferences within the sample. Scenario simulations allow estimating transport and environmental impacts deriving from channel market share changes. This information can be useful for developing both managerial strategies to increase e-grocery market share and public policy interventions to minimize negative externalities.
Highlights E-grocery is a niche market while the fastest growing e-commerce segment in Norway. Stated preference methods are well-suited for estimating channel choice demand for the grocery sector. E-grocery channel choice may produce substantial transport and environmental impacts. Product price and service cost are the main drivers for channel choice. Scenario simulations illustrate managerial strategies and public policy implications.
Bricks or clicks? Consumer channel choice and its transport and environmental implications for the grocery market in Norway
Abstract E-grocery is the fastest growing e-commerce segment, while still a niche market. Notwithstanding the channel choice when buying groceries might have relevant transport and environmental implications, little attention is paid to demand analysis. The paper fills this research gap, by using stated preferences to estimate market shares for e-grocery, distinguishing between home deliveries and click&pick, using the in-store option as a reference, and by considering a case study in Norway. It investigates the role of various purchase characteristics (i.e. product price, service cost, lead-time, time window, travel time and product range) when choosing which purchase channel to use. Results suggest that the most important characteristics for consumers are related to price, in particular product price, but there is also significant heterogeneity in preferences within the sample. Scenario simulations allow estimating transport and environmental impacts deriving from channel market share changes. This information can be useful for developing both managerial strategies to increase e-grocery market share and public policy interventions to minimize negative externalities.
Highlights E-grocery is a niche market while the fastest growing e-commerce segment in Norway. Stated preference methods are well-suited for estimating channel choice demand for the grocery sector. E-grocery channel choice may produce substantial transport and environmental impacts. Product price and service cost are the main drivers for channel choice. Scenario simulations illustrate managerial strategies and public policy implications.
Bricks or clicks? Consumer channel choice and its transport and environmental implications for the grocery market in Norway
Marcucci, Edoardo (author) / Gatta, Valerio (author) / Le Pira, Michela (author) / Chao, Ting (author) / Li, Shengnan (author)
Cities ; 110
2020-11-06
Article (Journal)
Electronic Resource
English
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