Analysis of critical factors affecting the final decision-making for online grocery shopping

Abstract

This study focuses on the importance of factors that both strongly impact logistics requirements and influence the final consumer decision for online grocery shopping. A stated preference survey was performed in Belo Horizonte, Brazil, using the following attributes: lead time, order fill rate and delivery-service price. Age and gender of interviewees were also considered in this decision-making process. The sample was composed of 222 interviewees. Mixed Logit models and Decision Trees were used to analyze the data and their interactions. Order Fill Rate was found to be the most important attribute. Failure to satisfactorily fulfill the order at the moment of shopping can significantly compromise e-groceries. Some interactions among the variables, such as between order fill rate and delivery-service price, have also led to interesting conclusions that should be taken into account by the grocer when planning special offers. Short lead times do not seem to be a very important priority for regular e-grocery purchasing. This research approach combines two statistical methods to better understand consumer behavior concerning e-grocery, in addition to providing insights for grocery retailers on the importance of some attributes for the effectiveness of e-grocery and their consequences on business logistics, which are particularly challenging during pandemics.