Abstract
This paper aims at explaining the choice between online and in-store shopping for typical search and experience goods (standard electronic appliances and groceries) within an artificial experimental setting assuming no privately owned cars. We present the first alternative-specific integrated choice and latent variable (ICLV) model using stated preference data in the field of shopping behavior research, explicitly asking respondents to trade-off attributes specific to each shopping channel.Respondents with pro-online shopping attitudes have a higher shopping cost sensitivity, which can be explained by the expanded choice set when effectively considering both purchasing channels. They also exhibit a higher choice probability of online shopping for groceries compared to electronic appliances, given the nature of experience goods being preferably purchased in-store, while the pleasure of shopping shows no substantial effect on choice behavior.Results reveal a user profile of pro-online shoppers that is mainly characterized by a technology-oriented generation of younger and well-educated men. Also, given the relatively high value of travel time compared to the value of delivery time, we show that especially for electronic appliances, avoiding a shopping trip produces more benefits than waiting for the delivery of ordered products.
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