Online shopping vs. In-store shopping: an analysis of choice behavior

Abstract

This study examines the consumer’s choice between online and in-store shopping for a specific product of books. For this purpose, a survey of 352 book buyers was implemented to collect revealed and stated preference data. Conditional logit and mixed logit models are used to analyze the choice. We found that 40 minute travelling to store and come back is worth VND 22,303 to VND 33,849, and that willingness to pay for one day earlier delivery is from VND 15,617 to VND 19,028. We also found that shoppers are more sensitive to online price than to price in store. Those who are office workers and those who spend more time to access the internet are more likely to shop online. Moreover, in-store shoppers with higher income are less sensitive to price than those who have lower income. Especially, shoppers with high income are more concerned about travel time than those with low income. The female shoppers are more patient waiting for the delivery. In addition, respondents evaluated that the convenience of payment method, the quality of books, ability to read books before purchasing and large variety offered products, are important and effect partially on their choice.