Consumer Preferences for Meal Delivery: The Offsetting and Complementary Effects of Virtual Restaurants

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ABSTRACT As meal delivery services continue to surge globally, the emergence of virtual restaurants presents unique opportunities and challenges. This study explores consumer preferences and willingness to pay for delivered meals from virtual restaurants and examines their interactions with branded restaurants, live kitchens, and consumer ratings through a discrete choice experiment. We find that consumers exhibit a stronger aversion to delivered meals from virtual restaurants. Furthermore, virtual restaurants and well‐known branded restaurants or live kitchens exhibit offsetting effects, leading to a lower combined consumer willingness to pay when these attributes coexist compared to each of them appearing separately. Conversely, virtual restaurants demonstrate complementary effects with positive or neutral consumer ratings. Simulation results indicate that combinations of single or multiple attributes contribute to alleviating potential consumer welfare losses associated with delivered meals from virtual restaurants, and mitigating their adverse impacts on market shares. Management strategies aimed at promoting restaurant diversity could focus on understanding these offsetting and complementary effects.

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Consumer Valuations and Preference Heterogeneity for a Novel Functional Food
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ABSTRACT: Recent trends in the marketing of functional foods suggest that multiple‐benefit products are becoming more common. Yet it is unclear which consumers are most interested in, or best served by, such novel or new generation functional foods. With emerging scientific evidence of efficacy and more diverse products offered for sale, a broader range of consumers are likely to become interested in dietary interventions to enhance health. Consumers will likely respond based on a range of motivation, health conditions, and knowledge levels suggesting “one size will not fit all.” Given such an evolving marketing environment, this paper presents 1 research technique exploring differences in consumer preferences and valuations for a novel functional food product—a tomato juice containing soy. A discrete choice experiment is applied to examine consumer valuation of this novel functional food. Data were collected from 1704 households in Ohio through a mail survey. The choice experiment manipulates whether or not the product is organic, whether it contains natural or fortified nutrients, and product price. Estimates of consumer willingness to pay a premium price are based on conditional logit and mixed logit models, which permit an examination of consumer preference and valuation heterogeneity for key product attributes. Results indicate that health benefits and ingredient naturalness are positively valued, but such preferences and valuations depend on an individual's education, income, and food purchase behavior. Naturally occurring nutrients are preferred over fortification. Considerable heterogeneity is found in the data suggesting that a range of market segments may exist.

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  • Journal of Water, Sanitation and Hygiene for Development
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IntroductionTelehealth service provision and uptake has rapidly increased since the COVID-19 pandemic, allowing healthcare to be delivered safely and reducing non-essential face-to-face (F2F) contact. In Australia, the expansion of subsidisation...

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  • 10.14264/d6481d1
Investigating an E-commerce business model to act as a bridge between the Australian beef industry and the Chinese market
  • Jan 18, 2021
  • Yaochen Hou

It is forecast by Meat & Livestock Australia (MLA) that e-commerce channels will be one of the fastest-growing marketing strategies underpinning the growth of beef consumption in the coming years (MLA 2016). The boom of e-commerce in retail has progressively induced traditional retailers to initiate new strategies, such as adding online marketing channels to meet the challenges brought out by the success of e-commerce. The new development has been built up by practitioners from both traditional retailers and pure-play e-commerce businesses that have migrated into omni-channel (OC) retailing, which is where their physical stores and online channels have been integrated to the extent that the distinction between offline and online is vanishing. In an OC system, the customer is expected to have a seamless shopping experience between different channels, which requires higher levels of logistics service, and more agile and dynamic omni-channel supply chains. With China having the most internet users in the world, it has the largest, fastest-growing and most innovative retail e-commerce market in the world, and Chinese consumers are world leaders in online shopping generally and online grocery shopping specifically.This project investigated how Australian beef could be sold into the Chinese market via e-commerce and how this avenue could play an increasingly important role for the marketing of beef. Thus, this study aimed to explore current Australia-China beef e-commerce supply chains (ACBESCs) that are used to distribute Australian imported beef products into China’s markets, as well as Chinese consumer reactions towards Australian beef products selling via the different ACBESCs. 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Within each type, the online and offline configuration, distribution network design, assortment issue, traceability issues and ACBESC fulfilment strategies applied by the actors were described.The consumer study consisted of two parts. The first part employed a discrete choice experiment (DCE) method to investigate Chinese consumer preferences and their willingness to pay (WTP) for certain ACBESC attributes. A DCE questionnaire survey was conducted in four first-tier cities of China (Beijing, Shanghai, Guangzhou and Shenzhen). A total of 1003 questionnaires was collected from four cities; 872 valid questionnaires were extracted and analysed using the multinomial logit model (MNL), random parameter logit model (RPL), and latent class model (LCM). The analysis revealed that consumers in China’s first-tier cities mostly prefer to purchase Australian beef products via omni-channel offline shops. This preference was followed by the omni-channel phone app, and self-operated pure-play e-commerce retail shops (conventional e-commerce businesses that only have online channels).Regarding the back-end supply chain, Chinese consumers mostly prefer the product to be originally cut and packaged in Australia with an Australian brand. Regarding traceability information, products with either the MLA True Aussie Beef logo or QR code providing traceability information are much preferred than products without. The MLA True Aussie Beef logo is preferred over the QR code. Chinese consumers in first-tier cities are ready to pay a premium for product selling via omni-channel offline stores and phone apps, and via self-operated e-commerce retailers. They are also willing to pay a premium for the product with an Australian brand that is originally produced and packaged in Australia, as well as products with QR code and MLA True Aussie beef logo providing traceability information.The second part of the consumer study investigated Chinese consumer preferences for beef product-related attributes, including their preferred beef-producing methods, cooking methods, country of origin, shopping channels and trust of different e-commerce-related channels. This part’s questionnaire was combined with the DCE questionnaire to create a single questionnaire, from which 819 valid questionnaires out of 1003 were extracted. Also, online consumers’ comments from several large e-commerce platforms were collected and analysed. The main themes and concepts in the comments were identified.Overall, these integrated findings from the ACBESCs actors and the Chinese consumers provide a reference for and enhanced understanding of the current fresh produce e-commerce and omni-channel landscape in China. Finally, the findings enable recommendations to be made to the Australian beef industry as to how to move forward in terms of providing a better service and added value for Chinese consumers.

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  • Cite Count Icon 25
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Direct-to-consumer mobile teledermoscopy for skin cancer screening: Preliminary results demonstrating willingness-to-pay in Australia
  • Oct 22, 2018
  • Journal of Telemedicine and Telecare
  • Centaine L Snoswell + 5 more

Introduction Internationally, teledermoscopy has been found to have clinical and economic efficacy. This study aims to identify the attributes of a mobile teledermoscopy service that consumers prefer. This preliminary study was set within a broader randomised control trial (RCT) investigating the effectiveness of direct to consumer mobile teledermoscopy. Methods We undertook a discrete choice experiment (DCE). The DCE comprised 24 choice sets, divided into in two blocks of 12. For each choice set, respondents were asked to make discrete choices between two opt-out choices and two skin cancer screening service options described by seven attributes. A mixed logit model was used to estimate preferences for skin cancer screening services. Consumer preferences weights were used to calculate marginal willingness-to-pay (WTP) for skin cancer screening services. Results The DCE was completed by 113 consumer respondents. Consumers’ preference for dermatologist involvement in their diagnosis, increased accuracy, and reduced excisions were all statistically significant in driving choice between service models. Consumers preferred having a professional involved in their skin cancer screening, rather than performing a self-examination. Consumers were only WTP $1.18 to change from a GP visit to mobile teledermoscopy (diagnosis using a phone camera). However, they were WTP $43 to have their results reviewed by a dermatologist rather than a GP, and $117 to increase the chance of detecting a melanoma if it was present from 65-75% to 95%. Conclusion Skin cancer screening services which are delivered by health professionals, rather than skin self-examination, are preferred by consumers. Consumers were willing to pay for their preferred skin cancer screening method, especially if a dermatologist was involved.

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  • Cite Count Icon 59
  • 10.1080/07421222.2015.1095038
It Is Not Just About Competition with “Free”: Differences Between Content Formats in Consumer Preferences and Willingness to Pay
  • Jul 3, 2015
  • Journal of Management Information Systems
  • Benedikt Berger + 3 more

While consumption of content in offline formats continues to decline, many providers are still struggling to monetize their content online, because consumers’ willingness to pay (WTP) for content in online formats is low. The availability of free content on the Internet is often considered the primary reason for this issue. However, we hold that the lower WTP is also related to a lower appraisal of online formats per se. Using a conjoint analysis and the example of newspaper subscriptions, we explore differences in consumer preferences and WTP between offline and online formats. Our results show that after price, format is the second-most important attribute of a newspaper subscription. While consumers still prefer the printed newspaper to any online format, WTP differs across online formats and is strongly associated with device ownership. Our study provides a novel understanding of the previously neglected factor content format and its importance for content providers.

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