What is the right delivery option for you? Consumer preferences for delivery attributes in online retailing

Abstract

Nowadays, online retailers are offering a variety of delivery options consisting of varying combinations of delivery attributes. This study investigates how consumers value these delivery attributes (e.g., delivery speed, time slot, daytime/evening delivery, delivery date, and delivery fee) when selecting a delivery option for their online purchases. Mental accounting theory is used to frame the research and to suggest how mental accounts for money, time, and convenience influence consumer preferences for online delivery options. Specifically, the results of a conjoint analysis show that the most important attribute in shaping consumer preferences is the delivery fee, followed by nonprice delivery attributes. For individual attributes, significant differences are found in consumer preferences between gender and income groups. Cluster analysis reveals three consumer segments that show distinct preference structures: We identify a “price-oriented,” a “time- and convenience-oriented,” and a “value-for-money-oriented” consumer segment. This study has practical implications for online retailers when implementing suitable delivery strategies and designing effective delivery options to maximize consumer satisfaction. © 2019 The Authors. Journal of Business Logistics published by Wiley Periodicals, Inc. on behalf of Council of Supply Chain Management Professionals.