Browse Theses

Consumers are posited to make purchasing decisions based on the value they derive from a service provider. It is further argued that the value drivers of shopping for a basic need, such as groceries, are distinct from those for other goods. Within the grocery acquisition activity, it was the contention in this study that the value drivers of online grocery shopping are different than those of store grocery shopping. By relating individual value components to behavioral loyalty in these two grocery shopping formats, the study was able to verify the significance of value in the prediction of loyalty, and compare between consumers of the two shopping mediums in terms of the importance they place on different components of value.

Given the physical differences that exist between shopping in a store versus shopping online, this study specifically investigated the influence of the need to touch, smell, and see goods, and the need to interact with people in the grocery-shopping context.

Overall the study found that consumers' assessments of value components do predict behavioral loyalty, and that store and online shoppers are indeed influenced by different value considerations. Store shoppers placed the most value on service quality and goods assortment, while online shoppers were most influenced by convenience, service quality, and perceived monetary sacrifice. In addition, desire to touch and the need for social interaction were found to relate significantly to the loyalty of online shoppers, but not store shoppers.

Given the Internet's increasing role in consumers' daily lives, this study also incorporated a systems dynamics modeling exercise to forecast future online grocery shopping usage given historical data and the present trends. Results from this exercise suggest that a meaningful rise in online grocery usage is not likely to occur until over ten years from now. This finding relates closely with the idea that it will take a new generation of consumers to readily, and in critical mass, adopt what today seems like a “new” way of buying groceries.