Identifying and testing drivers of consumers’ attitude towards last-mile delivery modes

Abstract

Many online businesses strive to optimize last-mile delivery cost by implementing delivery modes aimed at cutting costs through automation or collaboration. Convincing consumers to adopt cost-efficient last-mile delivery modes is imperative to successfully achieve this goal. Yet, evidence on consumers’ attitude towards different delivery modes is scarce and causes of differences in attitude are currently not well understood. Based on qualitative interviews with e-food industry experts, we identify potential drivers of consumers’ attitude towards last-mile delivery modes. We test these drivers experimentally, finding privacy concerns to fully mediate differences in attitude of in-home and in-garage delivery when compared to timed in-person delivery. In addition, we find evidence indicating the presence of privacy calculus in delivery mode choice. Next to reducing customer risk, providing added customer value could therefore be a viable approach to encourage consumer adoption of more cost-efficient last-mile delivery.