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Choice of prevailing delivery methods in e-grocery: a stated preference ranking experiment

Christina Milioti (Department of Civil Engineering, University of West Attica, Athens, Greece)
Katerina Pramatari (Department of Management Science and Technology, Athens University of Economics and Business, Athens, Greece)
Eleni Zampou (Department of Management Science and Technology, Athens University of Economics and Business, Athens, Greece)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 18 November 2020

Issue publication date: 26 January 2021

1732

Abstract

Purpose

The main purpose of this research is to investigate acceptability of different delivery methods in e-grocery (home delivery, pick-up from store, pick-up from locker) and the respective willingness of customers to pay for them using a stated preference ranking experiment.

Design/methodology/approach

Data collected involved two countries (Greece and UK) with different level of e-grocery development and two different distribution conditions (weekly and urgent order). Rank-ordered logit model is used to analyse the ranking experiment and calculate the willingness-to-pay (WTP) measures. Delivery mode, cost and time window are used as independent variables.

Findings

Results indicated that home delivery and picking-up from locker appear to be clearly preferable than picking-up from store. However, home delivery seems to hold a stronger competitive position over the other delivery methods, especially in the weekly order and in the UK market. The pick-up from locker option appears to be a competitive delivery mode for consumers who are cost sensitive and shop under urgent conditions. Willingness to use and pay for picking-up from locker increases significantly in the context of same-day delivery.

Practical implications

The information provided in this study will help retailers to design and implement distribution schemes that can meet consumers' preferences for e-grocery. WTP differences among the consumer groups and the distribution conditions examined can have a considerable impact on the evaluation of marketing and pricing strategies applied by e-retailers.

Originality/value

Consumer preference and the respective WTP for different delivery methods in e-grocery, especially for the pick-up from locker option, have not been systematically investigated.

Keywords

Acknowledgements

This research has been conducted in the context of the U-TURN H2020 project, co-funded by the European Commission. The authors would like to express their gratitude to all the project partners and especially to Professor Michalis Bourlakis, Dr. Emel Aktas and Dr. Dimitris Zissis from Cranfield University and Richard Walters and Alan Braithwaite from LCP for their support in data collection in the UK market. Moreover, they would like to express their great appreciation to Professor Panagiotis Miliotis for his valuable and constructive feedback during the writing of this paper.

Citation

Milioti, C., Pramatari, K. and Zampou, E. (2021), "Choice of prevailing delivery methods in e-grocery: a stated preference ranking experiment", International Journal of Retail & Distribution Management, Vol. 49 No. 2, pp. 281-298. https://doi.org/10.1108/IJRDM-08-2019-0260

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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