Consumer segmentation and choice preferences for online grocery retailers

초록

Online penetration rate for grocery products has significantly increased in many countries. The perishability of grocery products makes them highly dependent on the transportation time and packaging conditions. To fill the gap in the literature this study aims to identify the online grocery shopping needs of Korean consumers and to explore consumers' choice preferences for different online grocery retailers. This study performed Latent Class Analysis (LCA) to segment customers into two groups based on their needs of online grocery shopping. Then multinomial logit (MNL) model is used to analyze factors influencing consumers’ preference for online grocery. This enables us to derive appropriate marketing and online fulfillment strategies in the grocery retail industry.