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.
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Acknowledgments
The authors would like to acknowledge the Center for Infrastructure, Transportation, and the Environment at Rensselaer Polytechnic Institute for hosting Fulbright Scholarship Program, the Institute of International Education, the Bureau of Educational and Cultural Affairs, United States Department of State for the research support. The authors also would like to acknowledge editors and three anonymous reviewers for their comments and suggestions, which were significantly useful and contributed to the paper improvement.
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This research was supported by J. William Fulbright Foreign Scholarship Board and administered by the Bureau of Educational and Cultural Affairs, United States Department of State with the cooperation of the Institute of International Education in frame of Fulbright Visiting Scholar Grant “Seamless Last Mile Logistics for Sustainable Cities (SMILE Logistics)”.
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Alexander Rossolov: conceptualization, methodology, polling and data curation, descriptive analysis, discrete choice modeling, writing original draft of the paper, editing. Halyna Rossolova: conceptualization, polling and data curation, descriptive analysis, discrete choice modeling, writing original draft of the paper. José Holguín-Veras: methodology, descriptive analysis, discrete choice modeling, writing review and editing, supervision.
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Rossolov, A., Rossolova, H. & Holguín-Veras, J. Online and in-store purchase behavior: shopping channel choice in a developing economy. Transportation 48, 3143–3179 (2021). https://doi.org/10.1007/s11116-020-10163-3
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DOI: https://doi.org/10.1007/s11116-020-10163-3