Abstract
Online Grocery Shopping (OGS) is a relatively new sales channel for retailers and manufacturers that is changing retailing considerably. Despite this, little is known about whether or how consumers’ behavior changes when they start using OGS. We fill this research gap by measuring the share of national brands (NBs) of 173 households before and after starting OGS. Based on the literature, we derive the hypothesis that the share of NBs increases when households start using OGS, while the share of private labels (PL) consequently decreases. We use the difference-in-differences (DiD) method for our empirical analysis and test our hypothesis using extensive GfK household panel data. Our results show that the share of NBs increases significantly when a household commences OGS. Consequently, the market share of PLs decreases with start using OGS. These results help retailers and manufacturers to better understand how OGS can change consumer behavior. For manufacturers, this is a positive signal as it seems to strengthen the share of their NBs. For retailers, this is a sign of the relevance of NBs of online grocery shoppers.
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