Leveraging sustainable supply chain information to alter last-mile delivery consumption: A social exchange perspective

Abstract

The purpose of this research is to determine how sharing sustainability information about last-mile delivery options affects consumer behaviors. Experiments are conducted in a simulated online shopping environment. Consumers are asked to choose either an expedited shipment or a no-rush home delivery. Results show that typical consumer preferences for faster shipments can be significantly altered by disclosing emissions information and environmental impacts of last-mile delivery options. Consumers will often alter their consumption choice in favor of the lower emissions option. The observed effects are robust with a similar impact on altering consumption as traditional price discounts. These findings suggest retailers can simultaneously reduce distribution costs and carbon emissions without significant operational changes or financial investments by simply educating consumers to reduce the environmental impact of their last-mile delivery choices.