Key factors in successful online grocery retailing: empirical evidence from Tokyo, Japan

Abstract

Recently, Japan has seen a proliferation of online grocery retailers. This study identifies the key attributes determining Japanese consumers' preferences when choosing an online grocery retailer. To identify the factors attracting consumers, we conducted an online consumer survey in the area including the Tokyo Metropolitan district (Tokyo Metropolis, Yokohama, Saitama and Chiba City), with over 400 respondents. We then employed conjoint analysis to estimate the relative importance of selected service characteristics on consumer preferences in online grocery retailing. The results indicate that consumers attached highest value to shipping charges, followed by availability of delivery time window ranges and receiving methods. The final is expedited shipment. We also found that these preference rankings support central warehouse model development, rather than ship-from-store model. These findings provide implications to be considered by online grocery retailers when devising their marketing activities to build a competitive advantage over large and small- and medium-sized enterprise retailers.