Understanding the effects of retailer attributes on customer responses in online grocery retailing

Abstract: Online grocery shopping is gaining importance for both customers and retailers. Retailers have recognized the importance of online grocery as an extension of their existing business model, serving as drivers for their marketing and growth strategies. Online grocery retailer attributes such as delivery, pricing, website, products, and customer service influence customers to shop for groceries online. With more customers continuing to gain grocery shopping experience, it is essential to broaden the existing research on grocery retailing, which predominantly focuses on offline (in-store) grocery retailer attributes and creates an understanding of online grocery retailer attributes on customer responses. The existing literature on online grocery has provided valuable insights into who are these online grocery customers, their expectations from retailers, and why they shop for groceries online. However, compared to the extensive body of literature dedicated to offline grocery retailing, studies on understanding the effects of retailer attributes on online grocery customer response are relatively less and are predominantly focused on retailer attributes related to retailer’s website interface. Online grocery customers want convenience from the time they start grocery shopping. For these shoppers, retailer attributes beyond retailer’s website such as delivery, customer service is equally important. The present thesis contributes to research and practice by expanding our current understanding of the effect retailer attributes have on customer responses. More importantly, by examining these attributes one can identify the attributes that are essential to customers to enhance their overall grocery shopping convenience. The empirical results from four articles create a deeper understanding of retailer attributes’ effects on customer responses, furthering our insights beyond the current knowledge of retailer attributes’ effects on customer responses. The articles paint a larger picture, emphasizing the importance of retailer attributes towards enhancing convenience, introducing new technologies such as automated voice-activated devices for grocery purchases, and examining customer responses such as customer experience, customer satisfaction, and behavioral intentions. This thesis can be used as a guide for retailers in implementing strategies that can create positive and favorable customer responses.