I’ll have the ice cream soon and the vegetables later: A study of online grocery purchases and order lead time
- 1.6k Downloads
How do decisions made for tomorrow or 2 days in the future differ from decisions made for several days in the future? We use data from an online grocer to address this question. In general, we find that as the delay between order completion and delivery increases, grocery customers spend less, order a higher percentage of “should” items (e.g., vegetables), and order a lower percentage of “want” items (e.g., ice cream), controlling for customer fixed effects. These field results replicate previous laboratory findings and are consistent with theories suggesting that people’s should selves exert more influence over their choices the further in the future outcomes will be experienced. However, orders placed for delivery tomorrow versus 2 days in the future do not show this want/should pattern, and we discuss a potential explanation.
KeywordsLead time Intertemporal choice Want/should E-commerce Intrapersonal conflict
The authors thank John Beshears, George Loewenstein, Kathleen McGinn, Nava Ashraf, David Parkes, Carey Morewedge, Bill Simpson, Sarah Woolverton, and a very helpful set of reviewers for their assistance with this project. We are also grateful to the employees of the online grocer who generously shared their time, data and ideas with us.
- comScore Press Release (2007) comScore Networks reports total non-travel e-commerce spending reaches $102 billion in 2006; up 24 percent versus 2005. comScore Press Release. January 3, 2007. Accessed April 30, 2008: http://www.comscore.com/press/release.asp?press=1166.
- Khan, U., Dhar, R., & Wertenbroch, K. (2005). A behavioral decision theory perspective on hedonic and utilitarian choice. In S. Ratneshwar & D. G. Mick (Eds.), Inside consumption: Frontiers of research on consumer motives, goals, and desires (pp. 144–165). London: Routledge.Google Scholar
- Oster, S., & Scott Morton, F. M. (2005). Behavioral biases meet the market: The case of magazine subscription prices. BE Journals Economic Analysis and Policy—Advances, 5(1), 1323.Google Scholar
- Schelling, T. C. (1984). Choice and consequence: Perspectives of an errant economist. Cambridge: Harvard University Press.Google Scholar
- Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data. Cambridge: MIT.Google Scholar