Sweetening the Deal: The Ingredients that Drive Consumer Adoption of Online Grocery Shopping

Abstract

Over the past decades, consumer adoption of online grocery shopping has increased steadily. Yet, overall market share is still comparatively low and retailers start questioning the prospects of the maturing distribution channel. The existing landscape of online grocery channels has seen little innovation nor diversity in terms of business models, reflecting the prevailing assumption that consumer online grocery shopping behavior is largely homogeneous. The present research challenges this notion by updating the understanding of consumer online grocery shopping behavior in a large-scale, representative study of Danish consumers. The results reveal distinct segments of online grocery adopters, which differ in their importance placed on perceived benefits of online grocery shopping. These segments can be targeted based on differences in preference for price, convenience, and service. The findings imply potential for retailers’ differentiation in the market of online grocery shopping.