Modelling Consumers’ Preferences for Time-Slot Based Home Delivery of Goods Bought Online: An Empirical Study in Christchurch

Abstract

Due to the remarkable growth in online retail sales in New Zealand, a large number of parcels are needed to be delivered to consumers’ doorsteps. Home deliveries in major New Zealand cities (e.g., Christchurch) typically occur between 9 a.m. and 6 p.m. on weekdays, when many home delivery attempts fail. This leads to adverse effects, such as vehicular traffic in residential areas and greater air pollution per parcel delivered. However, home deliveries outside of typical business hours (i.e., before 9 a.m. and after 5 p.m.) might be worthwhile to help subside the above issues. Therefore, this study investigated consumers’ preferences for receiving home deliveries during various times, such as early morning, morning, afternoon, late afternoon, and evening. The data used in this study were obtained via an online survey of 355 residents of Christchurch city. Non-parametric tests, namely the Friedman test, Wilcoxon signed-rank test, and ordinal logistic regression, were carried out to examine consumer preferences for the above time slots. The results showed that consumers preferred the late afternoon (3 p.m. to 6 p.m.) time slot the most for receiving home deliveries. It appeared that the off-peak delivery option is less likely to draw the desired consumer patronage and is thus less likely to assist in lowering the number of unsuccessful home deliveries, the transportation costs incurred by service providers, traffic congestion, and pollution in urban areas.