What is the right delivery option for you? Consumer preferences for delivery attributes in online retailing

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Nowadays, online retailers are offering a variety of delivery options consisting of varying combinations of delivery attributes. This study investigates how consumers value these delivery attributes (e.g., delivery speed, time slot, daytime/evening delivery, delivery date, and delivery fee) when selecting a delivery option for their online purchases. Mental accounting theory is used to frame the research and to suggest how mental accounts for money, time, and convenience influence consumer preferences for online delivery options. Specifically, the results of a conjoint analysis show that the most important attribute in shaping consumer preferences is the delivery fee, followed by non-price delivery attributes. For individual attributes, significant differences are found in consumer preferences between gender and income groups. Cluster analysis reveals three consumer segments that show distinct preference structures: we identify a “price-oriented”, a “time and convenience-oriented”, and a “value-for-money-oriented” consumer segment. This study has practical implications for online retailers when implementing suitable delivery strategies and designing effective delivery options to maximize consumer satisfaction.
Original languageEnglish
JournalJournal of Business Logistics
Publication statusAccepted/In press - 17 Mar 2019

Fingerprint

Consumer preferences
Online retailing
Fees
Retailers
Income
Accounting theory
Conjoint analysis
Mental accounts
Cluster analysis
Consumer value
Value for money
Consumer satisfaction
Preference structure
Purchase
Mental accounting

Keywords

  • Last mile delivery
  • E-commerce logistics
  • Online retail
  • Conjoint analysis
  • Consumer behavior
  • Mental accounting theory

Cite this

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title = "What is the right delivery option for you? Consumer preferences for delivery attributes in online retailing",
abstract = "Nowadays, online retailers are offering a variety of delivery options consisting of varying combinations of delivery attributes. This study investigates how consumers value these delivery attributes (e.g., delivery speed, time slot, daytime/evening delivery, delivery date, and delivery fee) when selecting a delivery option for their online purchases. Mental accounting theory is used to frame the research and to suggest how mental accounts for money, time, and convenience influence consumer preferences for online delivery options. Specifically, the results of a conjoint analysis show that the most important attribute in shaping consumer preferences is the delivery fee, followed by non-price delivery attributes. For individual attributes, significant differences are found in consumer preferences between gender and income groups. Cluster analysis reveals three consumer segments that show distinct preference structures: we identify a “price-oriented”, a “time and convenience-oriented”, and a “value-for-money-oriented” consumer segment. This study has practical implications for online retailers when implementing suitable delivery strategies and designing effective delivery options to maximize consumer satisfaction.",
keywords = "Last mile delivery, E-commerce logistics, Online retail, Conjoint analysis, Consumer behavior, Mental accounting theory",
author = "D.H. Nguyen and {de Leeuw}, S.L.J.M. and Wout Dullaert and B. Foubert",
year = "2019",
month = "3",
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language = "English",
journal = "Journal of Business Logistics",
issn = "0735-3766",
publisher = "John Wiley & Sons Inc.",

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AU - Nguyen, D.H.

AU - de Leeuw, S.L.J.M.

AU - Dullaert, Wout

AU - Foubert, B.

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N2 - Nowadays, online retailers are offering a variety of delivery options consisting of varying combinations of delivery attributes. This study investigates how consumers value these delivery attributes (e.g., delivery speed, time slot, daytime/evening delivery, delivery date, and delivery fee) when selecting a delivery option for their online purchases. Mental accounting theory is used to frame the research and to suggest how mental accounts for money, time, and convenience influence consumer preferences for online delivery options. Specifically, the results of a conjoint analysis show that the most important attribute in shaping consumer preferences is the delivery fee, followed by non-price delivery attributes. For individual attributes, significant differences are found in consumer preferences between gender and income groups. Cluster analysis reveals three consumer segments that show distinct preference structures: we identify a “price-oriented”, a “time and convenience-oriented”, and a “value-for-money-oriented” consumer segment. This study has practical implications for online retailers when implementing suitable delivery strategies and designing effective delivery options to maximize consumer satisfaction.

AB - Nowadays, online retailers are offering a variety of delivery options consisting of varying combinations of delivery attributes. This study investigates how consumers value these delivery attributes (e.g., delivery speed, time slot, daytime/evening delivery, delivery date, and delivery fee) when selecting a delivery option for their online purchases. Mental accounting theory is used to frame the research and to suggest how mental accounts for money, time, and convenience influence consumer preferences for online delivery options. Specifically, the results of a conjoint analysis show that the most important attribute in shaping consumer preferences is the delivery fee, followed by non-price delivery attributes. For individual attributes, significant differences are found in consumer preferences between gender and income groups. Cluster analysis reveals three consumer segments that show distinct preference structures: we identify a “price-oriented”, a “time and convenience-oriented”, and a “value-for-money-oriented” consumer segment. This study has practical implications for online retailers when implementing suitable delivery strategies and designing effective delivery options to maximize consumer satisfaction.

KW - Last mile delivery

KW - E-commerce logistics

KW - Online retail

KW - Conjoint analysis

KW - Consumer behavior

KW - Mental accounting theory

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