Premium e-grocery:exploring value in logistics integrated service solutions

E-grocery is gradually becoming viable or a necessity for many families. Yet, most e-supermarkets are seen as providers of low value "staple" and bulky goods mainly. While each store has a large number of SKU available, these products are mainly necessity goods with low marginal value for hedonistic consumption. A need to acquire diverse products (e.g., organic), premium priced products (e.g., wine) for special occasions (e.g., anniversary, birthday), or products just for health related reasons (e.g., allergies, diabetes) are yet to be served via one-stop e-tailers. In this paper, we design a mathematical model that takes into account consumers' geo-demographics and multi-product sourcing capacity for creating critical mass and profit. Our mathematical model is a variant of Capacitated Vehicle Routing Problem with Time Windows (CVRPTW), which we extend by adding intermediate locations for trucks to meet and exchange goods. We illustrate our model for the city of Istanbul using GIS maps, and discuss its various extensions as well as managerial implications.

Personal privacy as a positive experience of shopping:an illustration through the case of online grocery shopping

Purpose - This paper aims to demonstrate the need for an improved understanding of the opportunities offered by privacy online. This is contextualized in the case of supermarket purchases of food in particular, often described as an intimate and personal choice. In the case of grocery shopping, the "intimacy" may be at the household level between members or/and between e-grocers' food offerings, and their other "non-food" related services Design/methodology/approach - This paper draws upon social practice theory research, retailing and consumer behaviour in order to develop a conceptual framework for understanding the value of positive privacy. The research uses 39 in-depth interviews of e-grocery shoppers in the area of Portsmouth (UK). Findings - This paper suggests a framework for embedded elements of positive privacy into retailing strategy as a driver for growth in the e-grocery sector. Three meta-themes requiring different approaches to privacy are uncovered. Positive privacy is dynamic and contextual at the consumer/household levels as well as for product/e-grocery brands. Research limitations/implications - This paper advocates the building of long-term sustainable relationship through sharing, offering, and exchange of information rather than pure technological chasing of data. Originality/value - A consumer centred bottom-up approach is employed demonstrating the value of two-way dialogues with consumers on sensitive issues. E-grocery is used as an illustration that involves regular re-purchase of a basket of staple goods over a long period of time where privacy becomes a latent long-term concern. © Emerald Group Publishing Limited.

How brand portfolios have changed:a study of grocery suppliers brands from 1994 to 2004

This study examines the changes in brand structures based on a repeat audit of brand portfolios by leading grocery product suppliers. It compares results from content analyses of four hundred leading suppliers' brands sold to Tesco and Sainsbury's in 1994 and 2004. The brand structures used have changed although not uniformly in extent or direction. There is now more complexity in the way brand names are used. An extended typology of brand structures is incorporated. Propositions drawn from latest thinking on the use of brand portfolios are compared with the findings implications discussed.

Go/no-go criteria during grocery brand development

Past research into new product screening criteria have largely centered on industrial new products. This study investigates the criteria that managers use for screening and evaluating new grocery products or brands. Theory suggests that the branding, promotional, and trade needs of grocery brands mean that screening criteria for grocery product development will differ from those applied to industrial goods. Our methodology departs from earlier research in gathering information on the accept/reject criteria during new product development rather than examining the reasons for success and failure after launch. The results endorse many findings from the extant literature on new product development. However, we highlight a set of factors that new product managers regard as important to the go/no-go decision in new grocery product or brand development that differs significantly from previous studies. From a research perspective, our study findings make an important contribution to the field by developing measurement scales for addressing NPD in the grocery sector.

Real choice in food grocery shopping in Britain

In the European Retail Digest, Tenbusch (2002) advised us that, "over the last decade, only discounters have been able to achieve significant revenue growth". The most casual observer of the retail scene in Europe would quickly realise that the author was most certainly not writing about Britain. Indeed he compared the situation in Germany with Britain by noting that grocery prices in the former were on average 20% lower. Interestingly, it was, at least in part, just those types of price comparison data that sparked the current British debate on the state of our market for food shopping. Soon, however, there were other factors brought into consideration. Market power of supermarket/ superstore operators, prices offered to small local farmers, the apparent permanent global summertime for food, food miles and eco-efficiency all became part of the debate. What might be the competing influence of any or all of these factors in the name of better 'choice' for consumers? Are British consumers really being offered better choice compared to what was available in the early 1980s, and might that explain the price differential with Germany and other countries? Or are we simply not comparing like with like? Indeed, as we will shortly argue, can we generalise about Britain at all when we accept, for example, that the Scottish market IS different?

Macro-level change and micro-level effects:a twenty year perspective on changing grocery shopping behaviour in Britain

In this paper we summarise key elements of retail change in Britain over a twenty-year period. The time period is that covered by a funded study into long-term change in grocery shopping habits in Portsmouth, England. The major empirical findings—to which we briefly allude—are reported elsewhere: the present task is to assess the wider context underlying that change. For example, it has frequently been stated that retailing in the UK is not as competitive as in other leading economies. As a result, the issue of consumer choice has become increasingly important politically. Concerns over concentration in the industry, new format development and market definition have been expressed by local planners, competition regulators and consumer groups. Macro level changes over time have also created market inequality in consumer opportunities at a local level—hence our decision to attempt a local-level study. Situational factors affecting consumer experiences over time at the local level involve the changing store choice sets available to particular consumers. Using actual consumer experiences thus becomes a yardstick for assessing the practical effectiveness of policy making. The paper demonstrates that choice at local level is driven by store use and that different levels of provision reflect real choice at the local level. Macro-level policy and ‘one size fits all’ approaches to regulation, it is argued, do not reflect the changing reality of grocery shopping. Accordingly, arguments for a more local and regional approach to regulation are made.

Exploring value through integrated service solutions:the case of e-grocery shopping

Purpose – The purpose of this paper is to demonstrate the need for an improved understanding of consumer value for online grocery purchases and to propose the notion of “integrated service solution” packages as a strategy for growing and successfully sustaining the channel to guide both marketing strategy and policy. Design/methodology/approach – This paper integrates and synthesises research from retailing, consumer behaviour and service quality literatures in order to develop a conceptual framework for understanding the value of e-grocery shopping to aid practitioners to address the critical needs, expectations and concerns of consumers for the development of grocery shopping within the online environment. Findings – This paper offers an alternative approach to allow e-grocery to become a mainstream retail channel in its own right and not to compete with the in-store offerings. The research demonstrates the need for a progressive approach that follows contemporary consumer needs and habits at the household level. The conjecture is that shopping for fast-moving consumer goods follows a learning path that needs to be replicated in the online context. Moreover, it is suggested that consumer resistance to the adoption of the new channel should be addressed not only from a technological perspective but also from the social aspects of online shopping. Originality/value – The research provides a practical framework for both retailers and policy makers on how the “next generation” of online services can be developed using a “bottom up” consumer perspective. This paper also advocates a non-technological bias to e-grocery retailing strategy.

A Franco-British comparison of patterns of working hours in large-scale grocery retailing, with specific reference to part-time work

In this thesis patterns of working hours in large-scale grocery retailing in Britain and France are compared. The research is carried out using cross-national comparative methodology, and the analysis is based on information derived from secondary sources and empirical research in large-scale grocery retailing involving employers and trade unions at industry level and case studies at outlet level. The thesis begins by comparing national patterns of working hours in Britain and France over the post-war period. Subsequently, a detailed comparison of working hours in large-scale grocery retailing in Britain and France is carried out through the analysis of secondary sources and empirical data. Emphasis is placed on analyzing part-time working hours. They are contrasted and compared at national level and explained in terms of supply and demand factors. The relationships between the structuring of, and satisfaction with, working hours and factors determining women's integration in the workforce in Britain and France are investigated. Part-time hours are then compared and contrasted in large-scale grocery retailing in the context of the analysis of working hours. The relationship between the structuring of working hours and satisfaction with them is examined in both countries through research with women part-timers in case study outlets. The cross-national comparative methodology is used to examine whether dissimilar national contexts in Britain and France have led to different patterns of working hours in large-scale grocery retailing. The principal conclusion is that significant differences are found in the length, organization and flexibility of working hours and that these differences can be attributed to dissimilar socio-economic, political, and cultural contexts in the two countries.

Moving towards premium e-grocery management:multi-products sourcing capacity logistic and geodemographic marketing in emerging markets

CD

Discriminating behaviors through value added premium online grocery offering

Despite many interest in e-grocery, little has changed, over the years, in the offering that is often geared only towards low value staple products. Yet, from an e-supermarket perspective, the number of sourcing stores is increasing regularly providing an illusion of service improvement. This situation, we argue is leading e-grocery providers to forego profits as consumers need to look both at the competition online and offline to satisfy their overall regular grocery needs. Expansion of e-grocery operations could be better achieved, we argue, by serving diverse and premium priced products (e.g. organic, limited production, regional items; special occasions items and products related to health e.g. allergies, diabetes) and utilizing more efficiently modern logistic techniques. A framework is offered presenting a model including the delivery of premium products from various suppliers and providing an integrated service solution to e-grocery customers that complete traditional supermarket ranges, creating potential high value added products niches. In this context, the objective was to understand the consumer discrimination factors (ie: range of product, delivery timing, location, service quality) leading to intentions towards purchasing more items from e-grocery retailers. Data are derived from a survey of 356 respondents in Turkey’s three biggest metropolitan areas. The relationship between consumer attitudes and demographic characteristics are also analyzed. Factor and SEM analyses are used to discriminate within the sample (n=356, no of items=150). Results, future research and policy implications are discussed.