DESIGN AND DELIVERY OF ELECTRONIC SERVICES: IMPLICATIONS FOR CUSTOMER VALUE IN ELECTRONIC FOOD RETAILING

Electronic food retailers can satisfy their customers more effectively if they understand how this particular market works. As in other service segments, the emergence of electronic business-to-customer services in the retail food industry poses questions for managers about the design of new food retailing services and the redesign of existing services for delivery through electronic channels. Important topics include characteristics of electronic service offerings, the typical operational configurations used to deliver electronic services, and the ways in which they relate to the effectiveness of electronic service delivery. We address this issue by developing a product-process matrix for understanding and analyzing electronic retailing services in general. We tailor the matrix to food retailing in particular. The product-process matrix allows electronic food retailers to determine in advance what features they need in a web site to serve their chosen market effectively.Consumer/Household Economics, Marketing, Research and Development/Tech Change/Emerging Technologies,

SUPERMARKET CUSTOMER OBSERVATION AND ELECTRONIC DATA ANALYSIS WITH IMPLICATIONS FOR THE MARKETING PLAN

This report is based on research initiated to determine the potential role of observation methodology in market plan development. This report is based on 100 observations conduced in a supermarket dairy department. The findings have implications for market planning, merchandising and communication strategies. As a pilot project, the results are not based entirely on randomly selected customers. This reports represents efforts to apply and refine the observation technique and not necessarily to convey results that can be projected to all shoppers in a supermarket. Further work is being done to accomplish random observations.Consumer/Household Economics, Marketing,

Buying groceries online: consumer perceptions and generational cohorts

Purpose – Online grocery shopping is gaining momentum in European retailing. The purpose of this study was to investigate four theoretical consumer-oriented constructs and their influence on consumer purchase intention in this context. Additionally, this paper examined differences between two generational cohorts, Millennials and Baby Boomers. Design/methodology/approach – A quantitative study was conducted among 354 Austrian consumers. Data were analyzed using IBM SPSS version 23.0. Findings – The main results found that perceived risk has a negative relationship with purchase intention and remains particularly relevant in online grocery shopping. Prior online shopping experience, perceived online shopping convenience and grocery variety seeking were also found to influence consumer intention. With respect to generational cohorts, Baby Boomers perceived entailed risks to be higher and convenience to be lower in comparison to Millennials. The younger generation displayed higher variety seeking as well as more distinct online shopping experience and enjoyment. Practical implications – For players in the online grocery market, this study’s implications present measures to address perceived risks and effectively communicate benefits to consumers. Originality/value – Theoretically, this study provides insights into specific consumer perceptions and experiences and their effect on future shopping intention. Also, the findings add to the scarce knowledge on generational cohort segmentation in the online shopping literature

Using Transaction Utility Approach for Retail Format Decision

Transaction Utility theory was propounded by Thaler to explain that the value derived by a customer from an exchange consists of two drivers: Acquisition Utilities and Transaction utilities. Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financial deal per se and is a function of the difference between the selling price and the reference price. Choice of a format has been studied from several dimensions including the cost and effort as well as the non-monetary values. However, the studies that present the complete picture and combine the aspects of the tangible as well as intangible values derived out of the shopping process are limited. Most of the studies, all of them from the developed economies, have focussed on the selection of a store. They represent a scenario where formats have stabilised. However, in Indian scenario formats have been found to be influencing the choice of store as well as orientation of the shoppers. Also, retailers are experimenting with alternate format with differing success rates. The author has also not found a study that has applied this theory. It is felt that the Transactional Utility Theory may provide a suitable approach for making format decisions.

E-business impacts for urban freight: results from an Australian study

E-Business is expected to dramatically change the way business is conducted internationally, nationally, within states and at the local area level. Moreover, these changes are very likely to happen well within the planning time frames required for provision of transport infrastructure and services. E-business is defined as including e-commerce, either between Businesses to Business (B2B) or Business to Customers (B2C), and the adoption of electronic technology within businesses. This paper presents some results from a study commissioned by the Australian National Transport Secretariat (NTS) to assist Australian business and government pro-actively address the transport issues arising from e-business. The resulting working papers will be used to establish a research framework for identifying policy and planning levers to maximize benefits to Australia from national and global e-business activity. The study sought to investigate three principal questions on e-business impacts: how will the transport task change; what will be affected; and how can the transport system respond? Current literature suggests that growth in e-business stems from the combined existence of market demand, suitable enabling technology, and skills and familiarity in management/users/ industry/government. The results of the study suggest that e-business will have implications for urban freight including higher levels of demand for goods and services, increased requirements for logistics distribution, changes in location preferences and improved transport network performance

E-COMMERCE: A NEW BUSINESS MODEL FOR THE FOOD SUPPLY/DEMAND CHAIN

The use of electronic commerce for quality control and cost cutting efficiencies by the food and agricultural industries in the United States is the focus of this paper. The food industry engages in e-commerce through 1.) Internet shopping for consumers called business-to-consumer (B2C) e-commerce 2.) Business-to-business (B2B) Internet market discovery exchanges used by food suppliers at any point in the supply chain, and 3.) Business-to-business (B2B) relationships that reduce costs and increase efficiencies in the procurement, storage and delivery of food to retail stores or distribution centers. This third use of e-commerce is the most highly developed and widely adopted. It allows retailers to share information about consumers' purchases and preferences with food manufacturers and farmers and for tracking food products' characteristics, source, and movement from production to consumer. This circle of information allows high quality and consistent products to be consumed at lower prices. This paper is about the development of e-commerce in the food industry, the economic concepts and goals that it meets, and the changes it brings to the industry. E-commerce both fosters and demands vertical coordination. It favors consolidation of firms. It changes the business culture from one of adversarial relationships to one of cooperation and trust. It changes the historical supply chain into a supply/demand loop while it lowers the cost of food. Policy issues arise around monopoly power, privacy, a diminution of variety, and the demise of small, undercapitalized firms.Industrial Organization, Marketing,

CONSUMERS’ WILLINGNESS TO BUY FOOD VIA THE INTERNET: A REVIEW OF THE LITTERATURE AND A MODEL FOR FUTURE RESEARCH

In the first part of the paper, existing studies on consumer propensity to buy via the Internet are reviewed in an attempt to shed light on factors explaining consumer willingness to buy food via the Internet. Following a model by Sindhav and Balazs (1999), determinants relating to medium, product, consumer, firm and environment are distinguished. In order to draw the various results together and provide a coherent framework for future research, we then propose a model which combines the Theory of Planned Behaviour and the lifestyle construct. The model can be used to analyse how beliefs affecting consumers intention to buy food via the Internet are formed and changed due to experience with such shoppingNo keywords;

Logistical Performance as a Key Factor of Success for European Food E-tailers– Three Paradoxes and a Research Agenda

In many Northern European countries, the sale of convenience goods through the Internet is experiencing a slow but undeniable growth. The emergence of this new distribution channel has brought into existence an extremely productive research area on the key factors which food e-tailers need to master for a lasting success in this field. The central nature of a perfect logistical organization is particularly emphasized in the areas of cost and service quality, both in terms of order fulfillment and order delivery. There is no question of minimizing the importance of logistics in the success of online transactions, as e-consumers obviously expect to be delivered at home in good conditions. But can we affirm that logistical performance systematically plays a crucial role for food e-tailers in obtaining a sustainable competitive advantage? By critically examining the relevant literature, this paper attempts to prove that the answer may be negative. The authors refer to three paradoxes relating to e-grocery logistics: one, the pressure of national and local Authorities leads to the sharing of resources to reduce environmental pollution (first paradox); two, the recognition of an e-marketing mix dissolves logistical performance in a set of non-logistical variables whose weight is probably significant in e-consumers’ behavior (second and third paradoxes)

Exploring the Grocery Store Satisfaction of England's Older Population: An Evaluation of Antecedents and Consequences Using Structural Equation Modelling

The number of people aged 60 years and above is increasing in the UK. In total, this age group represents 22% of the population with estimates indicating a rise to 29% by 2050 (United Nations, 2009). One market sector that is extremely important to the health and wellbeing of older people is grocery retail (Khan, 1981). However, little previous research has addressed how older people rate the service delivered by their grocery provider, particularly in regard to satisfaction. To reconcile this gap in theoretical understanding, a sequential transformative mixed-method research design was specified using 36 qualitative interviews and quantitative questionnaires with 524 subjects. A model including both drivers and consequences of satisfaction was formulated using past research. As such, an antecedent scale for grocery store image was developed via procedures suggested in the extant literature (e.g. DeVellis, 2003). Pre-existing scales (i.e. commitment and loyalty) representing exemplary reliability and validity were borrowed and specified as consequences. The scales were modified and integrated into a ‘structural equation model’. Older people were found to place a high level of importance in aspects of merchandise, store environment, personnel and services. Price/promotions and clientele were found to be insignificant in driving satisfaction. Differences in factor mean scores and structural parameters were then analysed using ‘finite mixture structural equation modelling’ to identify segments of similar respondents (Jedidi et al, 1997). Using posterior probabilities, the emerging segments were subjected to profiling using personal and behavioural variables (Hahn et al, 2002). Market Segmentation showed three groups of similar respondents in the sample population, differing in factor mean scores and psychological operationalisation of satisfaction. Nonetheless, only several differences in personal and behavioural characteristics were found between the segments. Whilst, the results show that segmenting this group is necessary when measuring satisfaction, basing this purely on a priori descriptive variables might be erroneous given the inherent levels of unobserved heterogeneity. The model developed and tested in this study is considered the most up-to-date available in the literature