IDEAS home Printed from https://ideas.repec.org/a/kap/transp/v48y2021i6d10.1007_s11116-020-10163-3.html
   My bibliography  Save this article

Online and in-store purchase behavior: shopping channel choice in a developing economy

Author

Listed:
  • Alexander Rossolov

    (O.M. Beketov National University of Urban Economy in Kharkiv)

  • Halyna Rossolova

    (PJSC “Kharkov Tile Plant”)

  • José Holguín-Veras

    (Rensselaer Polytechnic Institute)

Abstract

Developing economies are still in the stage of e-commerce deployment, unlike in developed countries, where online shopping is already a common purchase channel. This research aims to assess the purchasing behaviors of end-consumers in regard to two alternative shopping channels: in-store and online, within a developing economy. A revealed-preference survey was conducted to collect the in-store and online purchase activity of households in Ukraine. The data collected presents the purchase channel choices of end-consumers for eleven commodities in two categories: experience goods and search goods. A descriptive analysis of in-store and online shopping was made, with an evaluation of average purchase cost and time expenditures for shopping, travel, and delivery processes. A pooled binomial logit model was then developed to assess the purchase channel choice based on a Random Utility Maximization Theory. The estimated values of a marginal probability effect are presented, and the significance levels of attributes influencing purchase channel choice are evaluated. The marginal probability effect is found to be greater for shopping cost than for time attributes for most of the studied commodity channel choices. The sensitivity assessment for purchase cost, delivery and travel time revealed that first-priority goods such as medicine, food, clothing and shoes depended more on the attributes’ values variation than other commodities considered in the study. The comparison of this research’s results with other studies has shown a higher importance of shopping cost than time attributes for channel choice decisions in the case of the developing economy.

Suggested Citation

  • Alexander Rossolov & Halyna Rossolova & José Holguín-Veras, 2021. "Online and in-store purchase behavior: shopping channel choice in a developing economy," Transportation, Springer, vol. 48(6), pages 3143-3179, December.
    • Handle: RePEc:kap:transp:v:48:y:2021:i:6:d:10.1007_s11116-020-10163-3
    DOI: 10.1007/s11116-020-10163-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11116-020-10163-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11116-020-10163-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sinai, Todd & Waldfogel, Joel, 2004. "Geography and the Internet: is the Internet a substitute or a complement for cities?," Journal of Urban Economics, Elsevier, vol. 56(1), pages 1-24, July.
    2. Hsiao, Ming-Hsiung, 2009. "Shopping mode choice: Physical store shopping versus e-shopping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 86-95, January.
    3. Stefan Boes & Rainer Winkelmann, 2006. "Ordered Response Models," Springer Books, in: Olaf Hübler & Jachim Frohn (ed.), Modern Econometric Analysis, chapter 12, pages 167-181, Springer.
    4. Ashu Kedia & Diana Kusumastuti & Alan Nicholson, 2019. "Establishing Collection and Delivery Points to Encourage the Use of Active Transport: A Case Study in New Zealand Using a Consumer-Centric Approach," Sustainability, MDPI, vol. 11(22), pages 1-23, November.
    5. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    6. Sharon Cullinane, 2009. "From Bricks to Clicks: The Impact of Online Retailing on Transport and the Environment," Transport Reviews, Taylor & Francis Journals, vol. 29(6), pages 759-776, February.
    7. Rohm, Andrew J. & Swaminathan, Vanitha, 2004. "A typology of online shoppers based on shopping motivations," Journal of Business Research, Elsevier, vol. 57(7), pages 748-757, July.
    8. Jean Paul Rodrigue & Laetitia Dablanc & Genevieve Giuliano, 2017. "The Freight Landscape: Convergence and Divergence in Urban Freight Distribution," Post-Print hal-01519779, HAL.
    9. Cinzia Cirillo & Kay Axhausen, 2010. "Dynamic model of activity-type choice and scheduling," Transportation, Springer, vol. 37(1), pages 15-38, January.
    10. Bhat, Chandra R., 1998. "Analysis of travel mode and departure time choice for urban shopping trips," Transportation Research Part B: Methodological, Elsevier, vol. 32(6), pages 361-371, August.
    11. Patricia Mokhtarian, 2004. "A conceptual analysis of the transportation impacts of B2C e-commerce," Transportation, Springer, vol. 31(3), pages 257-284, August.
    12. Jesse W.J. Weltevreden & Ton Van Rietbergen, 2007. "E‐Shopping Versus City Centre Shopping: The Role Of Perceived City Centre Attractiveness," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 98(1), pages 68-85, February.
    13. Daniel McFadden, 2001. "Economic Choices," American Economic Review, American Economic Association, vol. 91(3), pages 351-378, June.
    14. Qing Zhai & Xinyu Cao & Patricia L. Mokhtarian & Feng Zhen, 2017. "The interactions between e-shopping and store shopping in the shopping process for search goods and experience goods," Transportation, Springer, vol. 44(5), pages 885-904, September.
    15. Holguín-Veras, José & Amaya Leal, Johanna & Sánchez-Diaz, Iván & Browne, Michael & Wojtowicz, Jeffrey, 2020. "State of the art and practice of urban freight management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 360-382.
    16. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    17. Roberta Alves & Renato da Silva Lima & David Custódio de Sena & Alexandre Ferreira de Pinho & José Holguín-Veras, 2019. "Agent-Based Simulation Model for Evaluating Urban Freight Policy to E-Commerce," Sustainability, MDPI, vol. 11(15), pages 1-19, July.
    18. Rotem-Mindali, Orit & Salomon, Ilan, 2007. "The impacts of E-retail on the choice of shopping trips and delivery: Some preliminary findings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(2), pages 176-189, February.
    19. Kotha, Suresh, 1998. "Competing on the Internet:: The case of Amazon.com," European Management Journal, Elsevier, vol. 16(2), pages 212-222, April.
    20. Suel, Esra & Polak, John W., 2017. "Development of joint models for channel, store, and travel mode choice: Grocery shopping in London," Transportation Research Part A: Policy and Practice, Elsevier, vol. 99(C), pages 147-162.
    21. Wang, Rebecca Jen-Hui & Malthouse, Edward C. & Krishnamurthi, Lakshman, 2015. "On the Go: How Mobile Shopping Affects Customer Purchase Behavior," Journal of Retailing, Elsevier, vol. 91(2), pages 217-234.
    22. Orit Rotem-Mindali & Jesse Weltevreden, 2013. "Transport effects of e-commerce: what can be learned after years of research?," Transportation, Springer, vol. 40(5), pages 867-885, September.
    23. Tri Basuki Joewono & Ari K. M. Tarigan & Muhamad Rizki, 2019. "Segmentation, Classification, and Determinants of In-Store Shopping Activity and Travel Behaviour in the Digitalisation Era: The Context of a Developing Country," Sustainability, MDPI, vol. 11(6), pages 1-23, March.
    24. Comi, Antonio, 2020. "A modelling framework to forecast urban goods flows," Research in Transportation Economics, Elsevier, vol. 80(C).
    25. Esra Suel & Nicolò Daina & John W. Polak, 2018. "A hazard-based approach to modelling the effects of online shopping on intershopping duration," Transportation, Springer, vol. 45(2), pages 415-428, March.
    26. Schmid, Basil & Axhausen, Kay W., 2019. "In-store or online shopping of search and experience goods: A hybrid choice approach," Journal of choice modelling, Elsevier, vol. 31(C), pages 156-180.
    27. Paul A. Samuelson, 1937. "A Note on Measurement of Utility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(2), pages 155-161.
    28. Zhou, Yiwei & Wang, Xiaokun (Cara), 2014. "Explore the relationship between online shopping and shopping trips: An analysis with the 2009 NHTS data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 1-9.
    29. Kurnia, Sherah & Choudrie, Jyoti & Mahbubur, Rahim Md & Alzougool, Basil, 2015. "E-commerce technology adoption: A Malaysian grocery SME retail sector study," Journal of Business Research, Elsevier, vol. 68(9), pages 1906-1918.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gómez-Marín, Cristian Giovanny & Comi, Antonio & Serna-Urán, Conrado Augusto & Zapata-Cortés, Julián Andrés, 2024. "Fostering collaboration and coordination in urban delivery: a multi-agent microsimulation model," Research in Transportation Economics, Elsevier, vol. 103(C).
    2. Marcin Gąsior, 2021. "Environmental Attitudes and Willingness to Purchase Online—Classification Approach," Sustainability, MDPI, vol. 13(15), pages 1-17, August.
    3. Lin, Yun Hui & Wang, Yuan & Lee, Loo Hay & Chew, Ek Peng, 2022. "Omnichannel facility location and fulfillment optimization," Transportation Research Part B: Methodological, Elsevier, vol. 163(C), pages 187-209.
    4. Wang, Jiawei, 2023. "The relationship between loneliness and consumer shopping channel choice: Evidence from China," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    5. Pei Li & Chunmao Wu & Charles Spence, 2023. "Comparing the influence of visual information and the perceived intelligence of voice assistants when shopping for sustainable clothing online," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    6. Bart Geurden & Jeroen Cant & Joris Beckers, 2022. "Food Accessibility in the Suburbs of the Metropolitan City of Antwerp (Belgium): A Factor of Concern in Local Public Health and Active and Healthy Aging," IJERPH, MDPI, vol. 19(23), pages 1-13, November.
    7. Reiffer, Anna S. & Kübler, Jelle & Kagerbauer, Martin & Vortisch, Peter, 2023. "Agent-based model of last-mile parcel deliveries and travel demand incorporating online shopping behavior," Research in Transportation Economics, Elsevier, vol. 102(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shah, Harsh & Carrel, Andre L. & Le, Huyen T.K., 2021. "What is your shopping travel style? Heterogeneity in US households’ online shopping and travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 153(C), pages 83-98.
    2. Tri Basuki Joewono & Ari K. M. Tarigan & Muhamad Rizki, 2019. "Segmentation, Classification, and Determinants of In-Store Shopping Activity and Travel Behaviour in the Digitalisation Era: The Context of a Developing Country," Sustainability, MDPI, vol. 11(6), pages 1-23, March.
    3. Wang, Kaili & Gao, Ya & Liu, Yicong & Nurul Habib, Khandker, 2023. "Exploring the choice between in-store versus online grocery shopping through an application of Semi-Compensatory Independent Availability Logit (SCIAL) model with latent variables," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    4. Schmid, Basil & Axhausen, Kay W., 2019. "In-store or online shopping of search and experience goods: A hybrid choice approach," Journal of choice modelling, Elsevier, vol. 31(C), pages 156-180.
    5. Xu, Lu & Saphores, Jean-Daniel, 2024. "Does e-shopping impact household travel? Evidence from the 2017 U.S. NHTS," Journal of Transport Geography, Elsevier, vol. 115(C).
    6. Suel, Esra & Polak, John W., 2017. "Development of joint models for channel, store, and travel mode choice: Grocery shopping in London," Transportation Research Part A: Policy and Practice, Elsevier, vol. 99(C), pages 147-162.
    7. Kunbo Shi & Long Cheng & Jonas De Vos & Yongchun Yang & Wanpeng Cao & Frank Witlox, 2021. "How does purchasing intangible services online influence the travel to consume these services? A focus on a Chinese context," Transportation, Springer, vol. 48(5), pages 2605-2625, October.
    8. Qing Zhai & Xinyu Cao & Patricia L. Mokhtarian & Feng Zhen, 2017. "The interactions between e-shopping and store shopping in the shopping process for search goods and experience goods," Transportation, Springer, vol. 44(5), pages 885-904, September.
    9. Wang, Xueqin & Wong, Yiik Diew & Shi, Wenming & Yuen, Kum Fai, 2022. "Shoppers’ logistics activities in omni-channel retailing: A conceptualisation and an exploration on perceptual differences in effort valuation," Transport Policy, Elsevier, vol. 115(C), pages 195-208.
    10. Xi, Guangliang & Cao, Xinyu & Zhen, Feng, 2020. "The impacts of same day delivery online shopping on local store shopping in Nanjing, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 35-47.
    11. Thomas Wieland, 2023. "Spatial shopping behavior during the Corona pandemic: insights from a micro-econometric store choice model for consumer electronics and furniture retailing in Germany," Journal of Geographical Systems, Springer, vol. 25(2), pages 291-326, April.
    12. Shi, Kunbo & De Vos, Jonas & Yang, Yongchun & Witlox, Frank, 2019. "Does e-shopping replace shopping trips? Empirical evidence from Chengdu, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 122(C), pages 21-33.
    13. Yu Ding & Huapu Lu, 2017. "The interactions between online shopping and personal activity travel behavior: an analysis with a GPS-based activity travel diary," Transportation, Springer, vol. 44(2), pages 311-324, March.
    14. Minh Hieu Nguyen & Jimmy Armoogum & Binh Nguyen Thi, 2021. "Factors Affecting the Growth of E-Shopping over the COVID-19 Era in Hanoi, Vietnam," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    15. Zhen, Feng & Du, Xiaojuan & Cao, Jason & Mokhtarian, Patricia L., 2018. "The association between spatial attributes and e-shopping in the shopping process for search goods and experience goods: Evidence from Nanjing," Journal of Transport Geography, Elsevier, vol. 66(C), pages 291-299.
    16. Esra Suel & Nicolò Daina & John W. Polak, 2018. "A hazard-based approach to modelling the effects of online shopping on intershopping duration," Transportation, Springer, vol. 45(2), pages 415-428, March.
    17. Orit Rotem-Mindali & Jesse Weltevreden, 2013. "Transport effects of e-commerce: what can be learned after years of research?," Transportation, Springer, vol. 40(5), pages 867-885, September.
    18. Mashalah, Heider Al & Hassini, Elkafi & Gunasekaran, Angappa & Bhatt (Mishra), Deepa, 2022. "The impact of digital transformation on supply chains through e-commerce: Literature review and a conceptual framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    19. Sascha Hoogendoorn-Lanser & Marie-José Olde Kalter & Nina T. W. Schaap, 2019. "Impact of different shopping stages on shopping-related travel behaviour: analyses of the Netherlands Mobility Panel data," Transportation, Springer, vol. 46(2), pages 341-371, April.
    20. Bjørgen, Astrid & Bjerkan, Kristin Ystmark & Hjelkrem, Odd Andre, 2021. "E-groceries: Sustainable last mile distribution in city planning," Research in Transportation Economics, Elsevier, vol. 87(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:transp:v:48:y:2021:i:6:d:10.1007_s11116-020-10163-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.