Online Grocery Retailing Research Articles

The effect of exclusive distribution on the sales of ready-made meals in online retail

This study examines the impact of exclusive distribution on sales for online retailers and the moderating effects of product assortment (width and depth) and within-category competitive intensity on this relationship. This study used panel data for 3285 ready-made meal products which are newly introduced from August 2018 to August 2021 at a leading online grocery retailer in Korea. The random-effects panel regression was applied to test the proposed model. The results show that exclusive distribution increases sales, and this effect is intensified with greater product depth and greater within-category competitive intensity. These findings provide useful implications for retailers to increase their likelihood of success when adopting an exclusive distribution strategy. This study also contributes to expanding the scope of the literature on the effect of exclusive distribution on sales in the context of online retail.

Fulfillment costs in online grocery retailing: comparing retail store and warehouse strategies

This study develops a framework that structures the operational costs of online grocery retailing in order to identify which is the most suitable e-fulfillment strategy. The cost framework was designed by applying time-driven activity-based costing (TDABC) and is based on the insights of two large European grocery retailers, which operate retail store and warehouse e-fulfillment strategies respectively. Cost information was collected, and activity-oriented process modeling was carried out in the field to identify the most relevant e-fulfillment cost drivers. For the retail store strategy, picking costs were the highest among e-fulfillment activities and up to twice as high as for the warehouse strategy. For the warehouse strategy, delivery costs were the highest and 50% higher than for the retail store strategy. Less studied logistics activities such as unpacking and reverse logistics all together accounted for up to one third of total expenses for both strategies. In omnichannel, operations and logistics managers must still ensure the profitability of the online channel if they want to succeed in the grocery business. This framework will help managers identify and estimate the most relevant cost drivers, and to allocate them to the main operational activities.

Applying the SOBC Paradigm to Reinterpret the Online Grocery Shopping Experience for the Senior Population

ABSTRACT Online grocery sales have witnessed a significant surge during the pandemic, and older consumers are among the online shoppers with the quickest growth. Importantly, this study is possibly among the first to explore how the stimulus-organization-behavior-consequence framework can be used to assess the impact of product experience, website experience, and delivery experience on their online grocery shopping experience, which further strengthens seniors’ satisfaction and impacts their ”webstore loyalty”. It is tested through an analysis of cross-sectional data collected from 282 elderly online grocery shoppers from India. Findings reveal that webstore design, physical environment, personalised communication, and customer service responsiveness are more significant in creating a positive affective experience, while competitive pricing and product information details are more significant in forming a cognitive experience. As a result of the pandemic, consumers prefer stores that provide them with food product knowledge, diversity, and a secure shopping environment. Our research can aid online retailers in identifying essential aspects of online grocery services in order to better serve older customers. The findings have interesting implications for online grocery retailers who wish to expand into emerging markets, particularly for the senior cohort, and can create differentiating service experiences to address emerging shopper experiences.

CUSTOMERS OPINION ON E-GROCERY STORES

Abstract : The advent of the Internet era has created incredible new opportunities, and e-commerce has emerged as the ideal fusion of technology and marketing know-how. E-grocers have mechanisms in place to take orders over the phone, which may be a stand-alone business model. We offer the most inexpensive pricing for Indian grocery products that one may purchase online. You can get significant discounts on each purchase you make from us and save a lot of money. This study investigates how consumers see online grocery retailers. The emphasis of this study is exclusively on big basket's online food buying. Technology is utilised to promote marketing campaigns and sell goods through internet marketing and shopping. We provide internet shoppers with the most affordable prices for Indian grocery items. Online merchants' bargains and discounts, large product selection, free home delivery, website usability, and the cash on delivery payment option are all factors that influence customer product purchases. Several factors influence how consumers see grocery shopping online. It is advised to research consumer perception, which

Effect of Financial Incentives and Default Options on Food Choices of Adults With Low Income in Online Retail Settings

Despite recent growth in online redemption of Supplemental Nutrition Assistance Program (SNAP) benefits, no previous work has tested the impact of economic and behavioral economic strategies on food purchasing behaviors in an online grocery retail setting among adults with low income. To examine the extent to which financial incentives and default shopping cart options influence fruit and vegetable purchases. This randomized clinical trial used an experimental online grocery store for adults who currently or have ever received SNAP benefits. From October 7 to December 2, 2021, participants were instructed to shop for a week's worth of groceries for their household, with a budget tailored to household size; no payment was taken. Random assignment to 1 of 4 conditions: no intervention, 50% discount on eligible fruits and vegetables, prefilled shopping carts with tailored fruit and vegetable items (ie, default options), or a combination of the discount and default options. The primary outcome was the percentage of nondiscounted dollars spent on eligible fruit and vegetables per basket. Of 2744 participants, mean (SD) age was 46.7 (16.0) years, and 1447 (52.7%) identified as women. A total of 1842 participants (67.1%) reported currently receiving SNAP benefits and 1492 (54.4%) reported shopping online for groceries in the previous 12 months. Participants spent a mean (SD) 20.5% (23.5%) of total dollars on eligible fruits and vegetables. Compared with no intervention, those in the discount condition spent 4.7% (98.3% CI, 1.7%-7.7%) of more total dollars on eligible fruits and vegetables; those in the default condition, 7.8% (98.3% CI, 4.8%-10.7%) more; and those in the combination condition, 13.0% (98.3% CI, 10.0%-16.0%) more (P < .001 for all). There was no difference between the discount and the default conditions (P = .06), but the effect in the combination condition was significantly larger than both discount and default conditions (P < .001). Default shopping cart items were purchased by 679 participants (93.4%) in the default condition and 655 (95.5%) in the combination condition, whereas 297 (45.8%) in the control and 361 (52.9%) in the discount conditions purchased those items (P < .001). No variation was observed by age, sex, or race and ethnicity, and results were similar when those who reported never shopping online for groceries were excluded. In this randomized clinical trial, financial incentives for fruits and vegetables and default options, especially in combination, led to meaningful increases in online fruit and vegetable purchases among adults with low income. ClinicalTrials.gov Identifier: NCT04766034.

Understanding Customer Preferences of Delivery Services for Online Grocery Retailing in South Korea

With the rapid growth of online grocery shopping in South Korea, e-grocery retailers have faced intense competition. Consequently, they attempt to differentiate themselves by offering diversified delivery services, such as providing early morning delivery services or eco-friendly packaging. The purpose of this paper is to analyze consumer preferences with regards to delivery services with different delivery times and packaging types targeting South Korea’s online grocery markets. Specifically, six delivery types consisting of combinations of two delivery time options (dawn, daytime) and three packaging types (paper box, market cooler bag, personal icebox) are examined. A survey was conducted in July 2020 with 218 consumers who regularly buy fresh food online. The collected data were analyzed by means of a conjoint analysis and ANOVA. The present study finds that customers most strongly prefer dawn delivery using a personal icebox, followed by dawn delivery using a market cooler bag, with daytime delivery using a paper box being the least preferable. Furthermore, consumers value the packaging type more than the delivery time when selecting a delivery service. Lastly, the preferences of consumers regarding delivery service types differ according to their characteristics. This study is expected to contribute to the establishment of a delivery strategy for online grocery companies.

Assortments and prices in online grocery retailing

Grocery retailing is undergoing rapid changes. New store formats and market channels, the entry of additional large players, and increasing multichannel activities on the supply side are accompanied by heterogeneous and changing consumer preferences. Retailers are increasingly competing in both price and variety. The question arises: how do product assortments affect retailers' prices? Larger assortments may be attractive for consumers who derive utility from variety or search for niche products. Retailers with a deeper assortment might be in a position to realize higher prices. Our study is the first to quantify the assortment-depth elasticity of price in online retailing, and the magnitude of assortment depth at which a further expansion of the assortment may no longer allow for a higher average price level. We collect a unique dataset for major online full-assortment grocery retailers in Germany and show that an increasing depth of grocery assortment raises online prices. The depth elasticity of price is below unity, and the influence is nonlinear.

What do regular online grocery shoppers want from online grocers going forward? Suggestions for service quality improvements

Online grocery shopping has become significantly more popular amid the Covid-19 pandemic. That said, the online grocery market in many European countries is still taking shape and further service developments are needed to meet consumers’ changing and increasing expectations. Based on an analysis of 412 regular online grocery shoppers’ suggestions for service quality improvements, eight categories of improvements were identified. Ranked according to the frequency by which they were mentioned, the top four categories were: (1) broad and specialized assortment, (2) delivery time and flexibility, (3) lower delivery costs and more pricing options, and (4) the user interface and search efficiency. The study contributes relevantly to a better understanding of what the online grocery retailers should prioritize in their service development to meet the changing expectations of a crucially important customer segment, the regular shoppers. Implications for online grocers and limitations of the study are discussed.

Food Marketing Practices of Major Online Grocery Retailers in the United States, 2019-2020.

Food marketing influences consumers' preferences for and selection of marketed products. Although a substantial body of research has described food-marketing practices in brick-and-mortar stores, no research has examined food marketing in online grocery retail despite its growing importance as a source of food-at-home purchases. To develop and apply a coding instrument to describe food marketing and the nutritional quality of marketed products in online grocery stores. Quantitative content analysis and review of product Nutrition Facts labels and ingredients lists to calculate nutrient density and level of processing using the NOVA classification system. Foods and beverages (n= 3,473) marketed in the top revenue-generating online grocery retailers and those participating in the US Department of Agriculture Supplemental Nutrition Assistance Program Online Purchasing Pilot (n= 21) in 2019-2020. Use of marketing mix strategies (ie, product, placement, promotion, and pricing) across retailers and nutritional quality of marketed products. Products were considered of poor nutritional quality in the case that they were ultraprocessed (NOVA category 4) and excessive in sodium, saturated fat, free sugars, and/or other sweeteners. Products were also classified into 13 mutually exclusive food groups. The proportion of retailers using each marketing strategy, proportion of products of poor nutritional quality, and proportion of products in each food group were calculated. Retailers commonly used product recommendations, search result ordering, branded website content, user-generated content, and social media engagement to market products online. Candy, sweets, and snacks made up the largest percentage of marketed products (17.3%), followed by fruit, vegetables, and legumes (16.7%). Most (62%) marketed products were of poor nutritional quality. Staple food categories such as fruits, vegetables, and grains were frequently marketed, particularly through price reductions and product recommendations. Online grocery retailers use a variety of customizable food marketing strategies on their websites. Although most marketed products are of poor nutritional quality, there is potential for marketing of staple food categories online that is not feasible in a brick-and-mortar store.

Optimal return and refund polices for perishable food items with online grocery shopping

ABSTRACT The purpose of this paper is to help online grocery retailers determine the optimal return and refund policies for perishable grocery items. Three refund policies and two return requirements are modelled: no-refund, full-refund and partial-refund, with or without product return. We first derive the optimal refund policy under two scenarios, where either product return is or is not required for refund. We further analyse how market conditions impact the optimal policies. Lastly, we investigate when product return should be required for refund. Our results show that a more generous refund policy should be offered if the product has a higher profit margin, if an unsatisfactory product has a large negative impact on consumer utility, and if consumers have high return costs when product return is required for refund. Our results also show that it is optimal not to require the unwanted product to be returned when consumer’s return cost and product return rate are above certain threshold values. This paper fills the gap in the literature on return and refund policies in an online grocery setting. The findings of this paper provide explicit guidance to online grocery businesses on how to optimally determine the return and refund policies.

Consequences of personalized product recommendations and price promotions in online grocery shopping

Shopping convenience can be turned into a competitive advantage for online grocery retailers. Consequently, we study how personalized product recommendations (recommendation agents) and price promotions (algorithmic pricing) compensate for the negative impact that consumer's perceived cognitive effort causes on loyalty. By default, the relationship from perceived cognitive efforts to attitudinal and behavioral loyalty is negative, yet these results demonstrate that personalized price promotions lessen the negative impact, while personalized product recommendations do not have such an influence. The findings contribute to a better understanding of personalized marketing activities in today's data-driven online grocery retailing.

“Sorry, the product you ordered is out of stock”: Effects of substitution policy in online grocery retailing

Postpurchase out-of-stock (PP-OOS) often happens in an online grocery context, where products appear to be available at the time a consumer places an order, but become OOS when the order is to be dispatched. This paper investigates two substitution policies that can mitigate negative responses: substitutions can match (i) on the dominant attribute and (ii) with a product from the consumers’ past purchase portfolio. According to data collected through two computer-simulated purchase experiments, involving more than 3,000 households and five product categories, matching the substitution on the dominant attribute increases acceptance, but this dominant attribute varies across category differentiation level (flavor for horizontal differentiated categories like cereals or crips vs. brand for vertical differentiated categories like margarine or ketchup). Category differentiation also informs acceptance of national brand or private-label flavor substitutes, such that, same-flavor private label is prefered more in horizontal differentiated categories. Matching on the basis of previous purchases has positive effects for both category differentiation levels, and when combining both policies, the previous purchase matching effect grows stronger for same flavor, rather than same brand, matching. These detailed insights establish several key managerial implications for substitution policies in online grocery contexts.

There is no place like home: home satisfaction and customer satisfaction in online grocery retailing

ABSTRACT This study acknowledges that home is a central and valenced place for most people, and therefore it is assumed that (a) the content in people’s general category for home issues can be activated easily, particularly by various home-related stimuli, and that (b) the affective charge of such content can have a valence-congruent impact on evaluations of home-related stimuli. These assumptions were the basis for two empirical studies carried out in an online grocery shopping context with respect to home delivery. Both studies indicate that home satisfaction had a positive influence on satisfaction with home delivery – and that home satisfaction had an indirect and positive influence of overall satisfaction with the retailer that provides home delivery. These findings, then, emphasize the need to ‘emplace’ the contemporary online shopper: although the shopper faces an abundance of alternatives only a mouse-click away, he or she is still emplaced in an environment when orders are placed and when goods are received. And when this environment is home, it is particularly likely to influence home-related offers.

Understanding the role of situational factors on online grocery shopping among older adults

This paper seeks to identify the situational factors that drive the adoption of online grocery shopping among older adults. A two-step research process is employed. First, exploratory qualitative research is carried out to identify situational factors that older adults take into account when deciding whether to buy groceries online. This is followed by a conjoint experiment to determine which situational factors are considered most important when making such a decision. The sample consisted of 9 participants in the in-depth individual interviews and 206 respondents in the conjoint experiment. The findings indicate that health, mobility issues, and distance to a store are the most important situational factors driving older adults to buy groceries online. Moreover, the findings confirm that the adoption of online grocery shopping among older adults is a result of a complex trade-off of situational variables. The findings contribute to managerial practice by providing online grocery retailers with insight that can be applied when designing promotional programs targeted at older adults.

On demand but not on display. A comparative analysis of nutrition labelling in online grocery retailers

On demand but not on display. A comparative analysis of nutrition labelling in online grocery retailers

An Integrated Model of Understanding the Role of Chatbots in the Online Grocery Retail Context

An Integrated Model of Understanding the Role of Chatbots in the Online Grocery Retail Context

Räumliche Organisationsstrukturen und Standortanforderungen im deutschen Online-Lebensmitteleinzelhandel: Beispiele aus ergänzendem, reinen und kombinierten Onlinehandel

Even before the current covid-19-pandemic, online grocery retailing in Germany is achieving a high level of momentum, giving rise to new and increasingly hybrid forms of operation and distribution models in the retail sector. These new operational forms of complementary, pure and combined e-commerce are accompanied by spatial changes of the individual value-added steps, e.g. in the areas of logistics, store structure and transfer of goods, which have hardly been investigated so far. Using three selected cases studies (Picnic, Wochenmarkt24 and Rewe) newer types of spatial logistics and distribution structures were identified and different location factors of these were listed. Thus, the paper illustrates that, in addition to the typical factors of location selection for distribution warehouses (proximity to customers, employees and suppliers) in food retailing, other aspects, such as a shortening of the last mile, a minimum or maximum density of households in the surrounding area or the proximity to an (agricultural) producer structure, can also be of importance for the new forms of operation.

Content Analysis of Online Grocery Retail Policies and Practices Affecting Healthy Food Access

ObjectiveTo describe policies and practices of online grocery retailers that may affect healthy food access, including retailers participating in the US Department of Agriculture's Supplemental Nutrition Assistance Program Online Purchasing Pilot. DesignCross-sectional, quantitative content analysis of 21 online grocery retail websites from November 2019 to January 2020. Main Outcome MeasuresData collected using a coding instrument capturing the presence of policies and practices related to (1) online purchasing and delivery access; (2) availability of features that allow price comparisons and provide nutrition information; and (3) data privacy. AnalysisDescriptive statistics for features, practices, and policies across online grocery retail websites. ResultsMost retailers (95%) added fees to online orders. Among pilot retailers, 38% added ≥ 3 fees, and 50% required a minimum order > $15. Few retailers (29%) displayed Nutrition Facts Labels on all products, including 50% of pilot retailers. All retailers collected personal information from shoppers and automatically shared data with affiliated companies. Conclusions and ImplicationsHigh fees, limited access to nutrition information on retailer sites, and lack of data privacy are prevalent in online grocery retail settings, including among Online Purchasing Pilot retailers. Online retail practices may perpetuate disparities in healthy food access by discouraging use through fees and making nutritious food choices difficult.

Impact of customer experience on attitude and repurchase intention in online grocery retailing: A moderation mechanism of value Co-creation

The study proposes a comprehensive model framework, Online Customer Experience-Attitude Behaviour Context model for online grocery retailing in a digital scenario. The research also studies the concept of value co-creation in a moderated mechanism. Data was collected from 526 respondents buying groceries online. Analytical Hierarchy Process, SPSS 23, AMOS 22 and PROCESS Macro were applied for further analysis, testing the hypothesis and model formulation. The results reveal that the antecedent's convenience, recovery, and delivery experience impacted the attitude significantly. The emerging concept of value co-creation influenced the overall relationship between the antecedent of Online Customer Experience and attitude but at lower level of value co-creation. Thus, suggesting that involving customers time to time in co-creating a delighting Online Customer Experience may be a good strategy for the online grocery retailers to elevate online customers' attitude and repurchase intention.

Gamification and customer experience: the mediating role of brand engagement in online grocery retailing

Purpose In recent years, the concept of gamification is one of the fastest-growing trends in the field of marketing to persuade, motivate and manipulate customer behavior. The application of gamification has become a priority for marketers as a new way of exploiting customers. Despite the increasing use of gamification mechanisms in marketing activities, there remain limitations. Although there is extensive literature in the field of customer experience and gamification, few studies have empirically examined how gamification influences customer experience by considering the mediating role of brand engagement in the online retailing context. Design/methodology/approach To obtain this aim, a cross-sectional survey was used. The statistical population was customers of online grocery retailers. The convenience sampling technique was used as a sampling technique. Out of 402 received questionnaires, 384 were selected for analysis. Structural equation modeling approach was applied to test the research hypotheses using AMOS 24 and SPSS 22 software. Findings The results indicated that all research hypotheses were supported. Gamification has a significant and positive impact on customer experience, gamification has a positive and significant effect on user customer brand engagement and customer brand engagement has a positive and significant impact on customer experience. Also, it revealed that customer brand engagement mediates between gamification and customer experience. Originality/value A review of the digital marketing literature reveals that there are few empirical studies, which adequately examined significant effective factors of customer experience in online grocery retailing; despite, the majority of researchers consider customer experience as the most important concept in digital marketing. The main contribution of this study is to examine the role of gamification on customer experience through the mediating role of customer engagement in the online grocery context. It adds value to the digital marketing and online retailing literature by providing new insight about determinants of customer experience in online grocery.