Browsing the Aisles or Browsing the App? How Online Grocery Shopping is Changing What We Buy

Published Online:https://doi.org/10.1287/mksc.2022.0292

References

  • Anderson G (2022) How will grocers react to Instacart’s expanded digital ad network? RetailWire. Accessed January 20, 2023, https://retailwire.com/discussion/how-will-grocers-react-to-instacarts-expanded-digital-ad-network/.Google Scholar
  • Bawa K, Shoemaker R (2004) The effects of free sample promotions on incremental brand sales. Marketing Sci. 23(3):345–363.LinkGoogle Scholar
  • Bell DR, Gallino S, Moreno A (2018) Offline showrooms in omnichannel retail: Demand and operational benefits. Management Sci. 64(4):1629–1651.LinkGoogle Scholar
  • Bornstein G (2020) Entry and profits in an aging economy: The role of consumer inertia. Working paper, The Wharton School, University of Pennsylvania, Philadelphia.Google Scholar
  • Bronnenberg BJ, Dubé JPH, Gentzkow M (2012) The evolution of brand preferences: Evidence from consumer migration. Amer. Econom. Rev. 102(6):2472–2508.CrossrefGoogle Scholar
  • Bronnenberg BJ, Klein TJ, Xu Y (2023) Consumer time budgets and grocery shopping behavior. Management Sci., 70(3):1596–1612.LinkGoogle Scholar
  • Brynjolfsson E, Hu Y, Simester D (2011) Goodbye Pareto principle, hello long tail: The effect of search costs on the concentration of product sales. Management Sci. 57(8):1373–1386.LinkGoogle Scholar
  • Caoui EH, Hollenbeck B, Osborne M (2022) The impact of dollar store expansion on local market structure and food access. Preprint, submitted July 25, https://dx.doi.org/10.2139/ssrn.4163102.Google Scholar
  • Chakravarti A, Janiszewski C (2003) The influence of macro-level motives on consideration set composition in novel purchase situations. J. Consumer Res. 30(2):244–258.CrossrefGoogle Scholar
  • Chen F, Liu X, Proserpio D, Troncoso I (2022) Product2vec: Understanding product-level competition using representation learning. Working paper, New York University Stern School of Business.Google Scholar
  • Chen F, Liu X, Proserpio D, Troncoso I, Xiong F (2020) Studying product competition using representation learning. Proc. 43rd Internat. ACM SIGIR Conf. Res. Development Inform. Retrieval (Association for Computing Machinery, New York), 1261–1268.Google Scholar
  • Chintagunta PK (1998) Inertia and variety seeking in a model of brand-purchase timing. Marketing Sci. 17(3):253–270.LinkGoogle Scholar
  • Chintagunta PK, Chu J, Cebollada J (2012) Quantifying transaction costs in online/offline grocery channel choice. Marketing Sci. 31(1):96–114.LinkGoogle Scholar
  • Choi J, Bell DR (2011) Preference minorities and the internet. J. Marketing Res. 48(4):670–682.CrossrefGoogle Scholar
  • Chu J, Chintagunta P, Cebollada J (2008) Research note—A comparison of within-household price sensitivity across online and offline channels. Marketing Sci. 27(2):283–299.LinkGoogle Scholar
  • Cui TH, Ghose A, Halaburda H, Iyengar R, Pauwels K, Sriram S, Tucker C, Venkataraman S (2021) Informational challenges in omnichannel marketing: Remedies and future research. J. Marketing 85(1):103–120.CrossrefGoogle Scholar
  • Damiani J (2020) Instacart surges past Walmart in online grocery market. Forbes Online (June 9), https://www.forbes.com/sites/jessedamiani/2020/06/09/instacart-surges-past-walmart-in-online-grocery-market/?sh=2defa92b1972.Google Scholar
  • Danaher PJ, Wilson IW, Davis RA (2003) A comparison of online and offline consumer brand loyalty. Marketing Sci. 22(4):461–476.LinkGoogle Scholar
  • Datta H, Knox G, Bronnenberg BJ (2018) Changing their tune: How consumers’ adoption of online streaming affects music consumption and discovery. Marketing Sci. 37(1):5–21.LinkGoogle Scholar
  • Degeratu AM, Rangaswamy A, Wu J (2000) Consumer choice behavior in online and traditional supermarkets: The effects of brand name, price, and other search attributes. Internat. J. Res. Marketing 17(1):55–78.CrossrefGoogle Scholar
  • Deng S, Adalja A, Liaukonyte J (2023) Consumer acceptance of CRISPR-edited food products and implications for online grocery shopping. Working paper, Cornell SC Johnson College of Business, Ithaca, NY.Google Scholar
  • Doan T, Veira N, Keng B (2018) Generating realistic sequences of customer-level transactions for retail datasets. 2018 IEEE Internat. Conf. Data Mining Workshops (IEEE, Piscataway, NJ), 820–827.Google Scholar
  • Donnelly R, Kanodia A, Morozov I (2023) Welfare effects of personalized rankings. Marketing Sci. 43(1):92–113.LinkGoogle Scholar
  • Dubé JP, Hitsch GJ, Rossi PE (2010) State dependence and alternative explanations for consumer inertia. RAND J. Econom. 41(3):417–445.CrossrefGoogle Scholar
  • Entezari N, Papalexakis EE, Wang H, Rao S, Prasad SK (2021) Tensor-based complementary product recommendation. 2021 IEEE Internat. Conf. Big Data (IEEE, Piscataway, NJ), 409–415.Google Scholar
  • Erdem T, Sun B (2001) Testing for choice dynamics in panel data. J. Bus. Econom. Statist. 19(2):142–152.CrossrefGoogle Scholar
  • Ergin E, Gümüş M, Yang N (2022) An empirical analysis of intra-firm product substitutability in fashion retailing. Production Oper. Management 31(2):607–621.CrossrefGoogle Scholar
  • Ertekin N, Gumus M, Nikoofal M (2021) Online-exclusive or hybrid? Channel merchandising strategies for ship-to-store implementation. Management Sci. 68(8):5828–5846.LinkGoogle Scholar
  • Fleder D, Hosanagar K (2009) Blockbuster culture’s next rise or fall: The impact of recommender systems on sales diversity. Management Sci. 55(5):697–712.LinkGoogle Scholar
  • Freimer M, Horsky D (2012) Periodic advertising pulsing in a competitive market. Marketing Sci. 31(4):637–648.LinkGoogle Scholar
  • Gabel S, Timoshenko A (2022) Product choice with large assortments: A scalable deep-learning model. Management Sci. 68(3):1808–1827.LinkGoogle Scholar
  • Gabel S, Guhl D, Klapper D (2019) P2v-map: Mapping market structures for large retail assortments. J. Marketing Res. 56(4):557–580.CrossrefGoogle Scholar
  • Ge Y, Zhao S, Zhou H, Pei C, Sun F, Ou W, Zhang Y (2020) Understanding echo chambers in e-commerce recommender systems. Proc. 43rd Internat. ACM SIGIR Conf. Res. Development Inform. Retrieval (ACM, New York), 2261–2270.Google Scholar
  • Goldenberg S (2016) Half of all US food produce is thrown away, new research suggests. The Guardian Online (July 13), https://www.theguardian.com/environment/2016/jul/13/us-food-waste-ugly-fruit-vegetables-perfect.Google Scholar
  • Guo B, Wang D (2023) Will online shopping lead to more brand loyalty than offline shopping? The role of uncertainty avoidance. J. Marketing Res. 61(1):92–109.CrossrefGoogle Scholar
  • Gupta S, Chintagunta PK, Wittink DR (1997) Household heterogeneity and state dependence in a model of purchase strings: Empirical results and managerial implications. Internat. J. Res. Marketing 14(4):341–357.CrossrefGoogle Scholar
  • Harris-Lagoudakis K (2022) Online shopping and the healthfulness of grocery purchases. Amer. J. Agricultural Econom. 104(3):1050–1076.CrossrefGoogle Scholar
  • Haws KL, Liu PJ, Redden JP, Silver HJ (2017) Exploring the relationship between varieties of variety and weight loss: When more variety can help people lose weight. J. Marketing Res. 54(4):619–635.CrossrefGoogle Scholar
  • Hinnosaar M (2023) The persistence of healthy behaviors in food purchasing. Marketing Sci. 42(3):521–537.LinkGoogle Scholar
  • Holtz D, Carterette B, Chandar P, Nazari Z, Cramer H, Aral S (2020) The engagement-diversity connection: Evidence from a field experiment on Spotify. Proc. 21st ACM Conf. Econom. Comput. (ACM, New York), 75–76.Google Scholar
  • Huang Y, Bronnenberg BJ (2022) Consumer transportation costs and the value of e-commerce: Evidence from the Dutch apparel industry. Marketing Sci. 42(5):984–1003.LinkGoogle Scholar
  • Hussey E (2021) Browsing in the aisles has been replaced by browsing mobile apps | Jācapps. Accessed May 19, 2021, https://jacapps.com/browsing-in-the-aisles-has-been-replaced-by.-browsing-mobile-apps.Google Scholar
  • Huyghe E, Verstraeten J, Geuens M, Van Kerckhove A (2017) Clicks as a healthy alternative to bricks: How online grocery shopping reduces vice purchases. J. Marketing Res. 54(1):61–74.CrossrefGoogle Scholar
  • Instacart (2021) Instacart help center. White paper, InstaCart, San Francisco, https://www.instacart.com/help/section/36000779 7972/360039569911.Google Scholar
  • IRI Worldwide (2020) The changing shape of the CPG demand curve: E-commerce. White paper, Information Resources Inc., Chicago. https://www.iriworldwide.com/IRI/media/Library/COVID-19-Changing-Shape.-of-the-Demand-Curve-Part-6-7-29-20.pdf.Google Scholar
  • Jindal P, Zhu T, Chintagunta P, Dhar S (2020) Marketing-mix response across retail formats: The role of shopping trip types. J. Marketing 84(2):114–132.CrossrefGoogle Scholar
  • Kang J, Jin B, Driebusch C (2023) Instacart’s revenue and profit climb ahead of public listing. The Wall Street Journal Online (February 28), https://www.wsj.com/articles/instacart-sees-revenue-profit-boost-ahead-of-public-listing-1d7891d.Google Scholar
  • Kolb KH (2021) Retail Inequality: Reframing the Food Desert Debate (University of California Press, Berkeley, CA).Google Scholar
  • Levine J, Seiler S (2022) Identifying state dependence in brand choice: Evidence from hurricanes. Marketing Sci. 42(5):934–957.LinkGoogle Scholar
  • Li KT (2020) Statistical inference for average treatment effects estimated by synthetic control methods. J. Amer. Statist. Assoc. 115(532):2068–2083.CrossrefGoogle Scholar
  • Li X, Grahl J, Hinz O (2022) How do recommender systems lead to consumer purchases? A causal mediation analysis of a field experiment. Inform. Systems Res. 33(2):620–637.LinkGoogle Scholar
  • Luo L, Sun J (2016) New product design under channel acceptance: Brick-and-mortar, online-exclusive, or brick-and-click. Production Oper. Management 25(12):2014–2034.CrossrefGoogle Scholar
  • Magnolfi L, McClure J, Sorensen A (2022) Triplet embeddings for demand estimation. Preprint, submitted May 20, https://dx.doi.org/10.2139/ssrn.4113399.Google Scholar
  • Manchanda P, Ansari A, Gupta S (1999) The “shopping basket”: A model for multicategory purchase incidence decisions. Marketing Sci. 18(2):95–114.LinkGoogle Scholar
  • Mantha A, Arora Y, Gupta S, Kanumala P, Liu Z, Guo S, Achan K (2020) A large-scale deep architecture for personalized grocery basket recommendations. ICASSP 2020-2020 IEEE Internat. Conf. Acoustics Speech Signal Processing (IEEE, Piscataway, NJ), 3807–3811.Google Scholar
  • McKinsey (2022) The next horizon for grocery e-commerce. Accessed May 31, 2023, https://www.mckinsey.com/industries/retail/our-insights/the-next-horizon-for-grocery-ecommerce-beyond-the-pandemic-bump#/.Google Scholar
  • Mercatus (2020) June 2020 online grocery scorecard: Growth in sales & HH penetration continues. Accessed May 19, 2021, https://www.brickmeetsclick.com/june-2020-online-grocery.-scorecard–growth-in-sales—hh-penetration-continues.Google Scholar
  • Mercatus (2021) Total U.S. online grocery sales for March 2021 up 43% vs. year ago. Accessed May 19, 2021, https://www.mercatus.com/newsroom/announcements/total-u-s-online-grocery-sales-for-march-2021-up-43-versus-year-ago.Google Scholar
  • Milkman KL, Rogers T, Bazerman MH (2010) I’ll have the ice cream soon and the vegetables later: A study of online grocery purchases and order lead time. Marketing Lett. 21(1):17–35.CrossrefGoogle Scholar
  • Nagaraj A, Reimers I (2021) Digitization and the demand for physical works: Evidence from the Google books project. Preprint, submitted March 4, 2019, https://dx.doi.org/10.2139/ssrn.3339524.Google Scholar
  • Narang U, Shankar V (2019) Mobile app introduction and online and offline purchases and product returns. Marketing Sci. 38(5):756–772.LinkGoogle Scholar
  • Neslin SA (2022) The omnichannel continuum: Integrating online and offline channels along the customer journey. J. Retailing 98(1):111–132.CrossrefGoogle Scholar
  • Oblander S, McCarthy D (2023) Estimating the long-term impact of major events on consumption patterns: Evidence from covid-19. Marketing Sci. 42(5):839–852.LinkGoogle Scholar
  • Oestreicher-Singer G, Sundararajan A (2012) Recommendation networks and the long tail of electronic commerce. Management Inform. Systems Quart. 36(1):65–83.CrossrefGoogle Scholar
  • Platzer M, Reutterer T (2016) Ticking away the moments: Timing regularity helps to better predict customer activity. Marketing Sci. 35(5):779–799.LinkGoogle Scholar
  • Pozzi A (2012) Shopping cost and brand exploration in online grocery. Amer. Econom. J. Microeconomics 4(3):96–120.CrossrefGoogle Scholar
  • Ratchford B, Soysal G, Zentner A, Gauri DK (2022) Online and offline retailing: What we know and directions for future research. J. Retailing 98(1):152–177.CrossrefGoogle Scholar
  • Reutterer T, Platzer M, Schröder N (2021) Leveraging purchase regularity for predicting customer behavior the easy way. Internat. J. Res. Marketing 38(1):194–215.CrossrefGoogle Scholar
  • Ruiz FJ, Athey S, Blei DM (2020) Shopper: A probabilistic model of consumer choice with substitutes and complements. Ann. Appl. Statist. 14(1):1–27.CrossrefGoogle Scholar
  • Sorvino C (2021) Instacart survived Covid chaos—But can it keep delivering after the pandemic? Forbes Online (January 27), https://www.forbes.com/sites/chloesorvino/2021/01/27/instacart-survived-covid-chaos---but-can-it-keep-delivering-after-the-pandemic/?sh=1fc4a19ebfa1.Google Scholar
  • Tucker C, Zhang J (2011) How does popularity information affect choices? A field experiment. Management Sci. 57(5):828–842.LinkGoogle Scholar
  • Vijjali R, Bhageria D, Tamhane A, M MT, Sathyanarayana J (2022) Foodnet: Simplifying online food ordering with contextual food combos. 5th Joint Internat. Conf. Data Sci. Management Data (9th ACM IKDD CODS 27th COMAD) (ACM, New York), 178–185.Google Scholar
  • Wang K, Goldfarb A (2017) Can offline stores drive online sales? J. Marketing Res. 54(5):706–719.CrossrefGoogle Scholar
  • Zentner A, Smith M, Kaya C (2013) How video rental patterns change as consumers move online. Management Sci. 59(11):2622–2634.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.