Title: Key factors in successful online grocery retailing: empirical evidence from Tokyo, Japan

Authors: Mitsunori Hirogaki

Addresses: Faculty of Economics, Kushiro Public University of Economics, 4-1-1 Ashino, Kushiro City, Hokkaido 085-8585, Japan

Abstract: Recently, Japan has seen a proliferation of online grocery retailers. This study identifies the key attributes determining Japanese consumers' preferences when choosing an online grocery retailer. To identify the factors attracting consumers, we conducted an online consumer survey in the area including the Tokyo Metropolitan district (Tokyo Metropolis, Yokohama, Saitama and Chiba City), with over 400 respondents. We then employed conjoint analysis to estimate the relative importance of selected service characteristics on consumer preferences in online grocery retailing. The results indicate that consumers attached highest value to shipping charges, followed by availability of delivery time window ranges and receiving methods. The final is expedited shipment. We also found that these preference rankings support central warehouse model development, rather than ship-from-store model. These findings provide implications to be considered by online grocery retailers when devising their marketing activities to build a competitive advantage over large and small- and medium-sized enterprise retailers.

Keywords: online retaining; e-tailing; electronic retailing; grocery retailing; conjoint analysis; consumer behaviour; consumer preferences; web-based survey; Tokyo; Japan; e-commerce; electronic commerce; free shipping; large-scale retailers; SMEs; small and medium-sized enterprises; marketing.

DOI: 10.1504/IJESB.2015.071821

International Journal of Entrepreneurship and Small Business, 2015 Vol.26 No.2, pp.139 - 153

Available online: 19 Sep 2015 *

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