IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v187y2024ics0965856424002258.html
   My bibliography  Save this article

Are consumers ready to pay extra for crowd-shipping e-groceries and why? A hybrid choice analysis for developing economies

Author

Listed:
  • Rossolov, Oleksandr
  • Susilo, Yusak O.

Abstract

This paper presents the results of a behavioral study on consumers’ willingness-to-pay the extra for e-grocery deliveries based on crowd-shipping. The proposed methodology was tested for Ukraine, i.e., a developing country where the crowd-shipping services are under development conditions. The choice model was enhanced with two latent variables to account for the behavior complexity of the consumers who have not faced crowd-shipping services in the past. These variables were extracted through factor analysis to encompass pro-crowd-shipping and pro-commercial carrier attributes. The willingness-to-pay for e-grocery deliveries based on crowd-shipping and commercial carriers was estimated using hybrid choice modeling results. The findings indicate more than two times higher willingness-to-pay for saving delivery time for crowd-shipping compared to commercial carrier services. Discrete choice analysis of consumer-related attributes identified males with cons-crowd-shipping attitudes. Age-wise, consumers younger than 30 years exhibited pro-crowd-shipping behavior. The direct and cross elasticities have been estimated to evaluate the impacts of variation in service-specific attributes on the consumer’s behavior within e-groceries scope.

Suggested Citation

  • Rossolov, Oleksandr & Susilo, Yusak O., 2024. "Are consumers ready to pay extra for crowd-shipping e-groceries and why? A hybrid choice analysis for developing economies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 187(C).
    • Handle: RePEc:eee:transa:v:187:y:2024:i:c:s0965856424002258
    DOI: 10.1016/j.tra.2024.104177
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856424002258
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2024.104177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tapia, Rodrigo J. & Kourounioti, Ioanna & Thoen, Sebastian & de Bok, Michiel & Tavasszy, Lori, 2023. "A disaggregate model of passenger-freight matching in crowdshipping services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    2. Danalet, Antonin & Tinguely, Loïc & Lapparent, Matthieu de & Bierlaire, Michel, 2016. "Location choice with longitudinal WiFi data," Journal of choice modelling, Elsevier, vol. 18(C), pages 1-17.
    3. Henry Kaiser, 1958. "The varimax criterion for analytic rotation in factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 23(3), pages 187-200, September.
    4. Devari, Aashwinikumar & Nikolaev, Alexander G. & He, Qing, 2017. "Crowdsourcing the last mile delivery of online orders by exploiting the social networks of retail store customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 105-122.
    5. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54, January.
    6. Fosgerau, Mogens & Bierlaire, Michel, 2007. "A practical test for the choice of mixing distribution in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 41(7), pages 784-794, August.
    7. Schmid, Basil & Jokubauskaite, Simona & Aschauer, Florian & Peer, Stefanie & Hössinger, Reinhard & Gerike, Regine & Jara-Diaz, Sergio R. & Axhausen, Kay W., 2019. "A pooled RP/SP mode, route and destination choice model to investigate mode and user-type effects in the value of travel time savings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 262-294.
    8. Fessler, Andreas & Thorhauge, Mikkel & Mabit, Stefan & Haustein, Sonja, 2022. "A public transport-based crowdshipping concept as a sustainable last-mile solution: Assessing user preferences with a stated choice experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 210-223.
    9. Nocera, Silvio & Tonin, Stefania & Cavallaro, Federico, 2015. "Carbon estimation and urban mobility plans: Opportunities in a context of austerity," Research in Transportation Economics, Elsevier, vol. 51(C), pages 71-82.
    10. Di Puglia Pugliese, Luigi & Ferone, Daniele & Macrina, Giusy & Festa, Paola & Guerriero, Francesca, 2023. "The crowd-shipping with penalty cost function and uncertain travel times," Omega, Elsevier, vol. 115(C).
    11. Fehn, Fabian & Engelhardt, Roman & Dandl, Florian & Bogenberger, Klaus & Busch, Fritz, 2023. "Integrating parcel deliveries into a ride-pooling service—An agent-based simulation study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    12. Cherchi, Elisabetta, 2017. "A stated choice experiment to measure the effect of informational and normative conformity in the preference for electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 88-104.
    13. Pourrahmani, Elham & Jaller, Miguel, 2021. "Crowdshipping in last mile deliveries: Operational challenges and research opportunities," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    14. Punel, Aymeric & Stathopoulos, Amanda, 2017. "Modeling the acceptability of crowdsourced goods deliveries: Role of context and experience effects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 18-38.
    15. Boysen, Nils & Emde, Simon & Schwerdfeger, Stefan, 2022. "Crowdshipping by employees of distribution centers: Optimization approaches for matching supply and demand," European Journal of Operational Research, Elsevier, vol. 296(2), pages 539-556.
    16. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
    17. Patricia L Mokhtarian & David T Ory & Xinyu Cao, 2009. "Shopping-Related Attitudes: A Factor and Cluster Analysis of Northern California Shoppers," Environment and Planning B, , vol. 36(2), pages 204-228, April.
    18. Aliaksandr Malokin & Giovanni Circella & Patricia L. Mokhtarian, 2021. "Do millennials value travel time differently because of productive multitasking? A revealed-preference study of Northern California commuters," Transportation, Springer, vol. 48(5), pages 2787-2823, October.
    19. Bhat, Chandra R., 2001. "Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 677-693, August.
    20. Michele D. Simoni & Edoardo Marcucci & Valerio Gatta & Christian G. Claudel, 2020. "Potential last-mile impacts of crowdshipping services: a simulation-based evaluation," Transportation, Springer, vol. 47(4), pages 1933-1954, August.
    21. Holguín-Veras, José & Thorson, Ellen, 2003. "Modeling commercial vehicle empty trips with a first order trip chain model," Transportation Research Part B: Methodological, Elsevier, vol. 37(2), pages 129-148, February.
    22. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    23. Veronika Zavratnik & Dan Podjed & Jure Trilar & Nina Hlebec & Andrej Kos & Emilija Stojmenova Duh, 2020. "Sustainable and Community-Centred Development of Smart Cities and Villages," Sustainability, MDPI, vol. 12(10), pages 1-17, May.
    24. Daniel McFadden, 1986. "The Choice Theory Approach to Market Research," Marketing Science, INFORMS, vol. 5(4), pages 275-297.
    25. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    26. Ben-Akiva, Moshe & McFadden, Daniel & Train, Kenneth & Börsch-Supan, Axel, 2002. "Hybrid Choice Models: Progress and Challenges," Sonderforschungsbereich 504 Publications 02-29, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    27. Alexander Rossolov & Yevhen Aloshynskyi & Oleksii Lobashov, 2022. "How COVID-19 Has Influenced the Purchase Patterns of Young Adults in Developed and Developing Economies: Factor Analysis of Shopping Behavior Roots," Sustainability, MDPI, vol. 14(2), pages 1-24, January.
    28. Hess, Stephane & Bierlaire, Michel & Polak, John W., 2005. "Estimation of value of travel-time savings using mixed logit models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(2-3), pages 221-236.
    29. Valerio Gatta & Edoardo Marcucci & Ila Maltese & Gabriele Iannaccone & Jiarui Fan, 2021. "E-Groceries: A Channel Choice Analysis in Shanghai," Sustainability, MDPI, vol. 13(7), pages 1-18, March.
    30. Saphores, Jean-Daniel & Xu, Lu, 2021. "E-shopping changes and the state of E-grocery shopping in the US - Evidence from national travel and time use surveys," Research in Transportation Economics, Elsevier, vol. 87(C).
    31. Cebeci, Merve Seher & Tapia, Rodrigo Javier & Kroesen, Maarten & de Bok, Michiel & Tavasszy, Lóránt, 2023. "The effect of trust on the choice for crowdshipping services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    32. Le, Tho V. & Ukkusuri, Satish V. & Xue, Jiawei & Van Woensel, Tom, 2021. "Designing pricing and compensation schemes by integrating matching and routing models for crowd-shipping systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    33. Schmid, Basil & Axhausen, Kay W., 2019. "In-store or online shopping of search and experience goods: A hybrid choice approach," Journal of choice modelling, Elsevier, vol. 31(C), pages 156-180.
    34. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    35. Hess, Stephane & Palma, David, 2019. "Apollo: A flexible, powerful and customisable freeware package for choice model estimation and application," Journal of choice modelling, Elsevier, vol. 32(C), pages 1-1.
    36. Bruzzone, Francesco & Cavallaro, Federico & Nocera, Silvio, 2021. "The integration of passenger and freight transport for first-last mile operations," Transport Policy, Elsevier, vol. 100(C), pages 31-48.
    37. Beckers, Joris & Cardenas, Ivan & Le Pira, Michela & Zhang, Jia, 2023. "Exploring Logistics-as-a-Service to integrate the consumer into urban freight," Research in Transportation Economics, Elsevier, vol. 101(C).
    38. Bjørgen, Astrid & Bjerkan, Kristin Ystmark & Hjelkrem, Odd Andre, 2021. "E-groceries: Sustainable last mile distribution in city planning," Research in Transportation Economics, Elsevier, vol. 87(C).
    39. Andrew Daly & Stephane Hess & Bhanu Patruni & Dimitris Potoglou & Charlene Rohr, 2012. "Using ordered attitudinal indicators in a latent variable choice model: a study of the impact of security on rail travel behaviour," Transportation, Springer, vol. 39(2), pages 267-297, March.
    40. Louviere, Jordan J & Hensher, David A, 1983. "Using Discrete Choice Models with Experimental Design Data to Forecast Consumer Demand for a Unique Cultural Event," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(3), pages 348-361, December.
    41. Maltese, Ila & Le Pira, Michela & Marcucci, Edoardo & Gatta, Valerio & Evangelinos, Christos, 2021. "Grocery or @grocery: A stated preference investigation in Rome and Milan," Research in Transportation Economics, Elsevier, vol. 87(C).
    42. Alexander Rossolov & Halyna Rossolova & José Holguín-Veras, 2021. "Online and in-store purchase behavior: shopping channel choice in a developing economy," Transportation, Springer, vol. 48(6), pages 3143-3179, December.
    43. Kafle, Nabin & Zou, Bo & Lin, Jane, 2017. "Design and modeling of a crowdsource-enabled system for urban parcel relay and delivery," Transportation Research Part B: Methodological, Elsevier, vol. 99(C), pages 62-82.
    44. Wang, Yuan & Zhang, Dongxiang & Liu, Qing & Shen, Fumin & Lee, Loo Hay, 2016. "Towards enhancing the last-mile delivery: An effective crowd-tasking model with scalable solutions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 279-293.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Dingtong & Hyland, Michael F. & Jayakrishnan, R., 2024. "Tackling the crowdsourced shared-trip delivery problem at scale with a novel decomposition heuristic," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    2. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    3. Tapia, Rodrigo J. & Kourounioti, Ioanna & Thoen, Sebastian & de Bok, Michiel & Tavasszy, Lori, 2023. "A disaggregate model of passenger-freight matching in crowdshipping services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    4. Oleksandr Rossolov & Yusak O. Susilo, 2023. "Are consumers ready to pay extra for crowd-shipping e-groceries and why? A hybrid choice analysis for developing economies," Papers 2303.07044, arXiv.org.
    5. Rotaris, Lucia & Giansoldati, Marco & Scorrano, Mariangela, 2021. "The slow uptake of electric cars in Italy and Slovenia. Evidence from a stated-preference survey and the role of knowledge and environmental awareness," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 1-18.
    6. He, Shan & Dai, Ying & Ma, Zu-Jun, 2023. "To offer or not to offer? The optimal value-insured strategy for crowdsourced delivery platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    7. Joan L. Walker & Moshe Ben-Akiva, 2011. "Advances in Discrete Choice: Mixture Models," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 8, Edward Elgar Publishing.
    8. Ghaderi, Hadi & Zhang, Lele & Tsai, Pei-Wei & Woo, Jihoon, 2022. "Crowdsourced last-mile delivery with parcel lockers," International Journal of Production Economics, Elsevier, vol. 251(C).
    9. Cebeci, Merve Seher & Tapia, Rodrigo Javier & Kroesen, Maarten & de Bok, Michiel & Tavasszy, Lóránt, 2023. "The effect of trust on the choice for crowdshipping services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    10. Oyama, Yuki & Fukuda, Daisuke & Imura, Naoto & Nishinari, Katsuhiro, 2024. "Do people really want fast and precisely scheduled delivery? E-commerce customers' valuations of home delivery timing," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    11. Wang, Yi-Jia & Wang, Yue & Huang, George Q. & Lin, Ciyun, 2024. "Public acceptance of crowdsourced delivery from a customer perspective," European Journal of Operational Research, Elsevier, vol. 317(3), pages 793-805.
    12. Arora, Nikita & Crastes dit Sourd, Romain & Hanson, Kara & Woldesenbet, Dorka & Seifu, Abiy & Quaife, Matthew, 2022. "Linking health worker motivation with their stated job preferences: A hybrid choice analysis in Ethiopia," Social Science & Medicine, Elsevier, vol. 307(C).
    13. Pourrahmani, Elham & Jaller, Miguel, 2021. "Crowdshipping in last mile deliveries: Operational challenges and research opportunities," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    14. Patricija Bajec & Danijela Tuljak-Suban, 2022. "A Strategic Approach for Promoting Sustainable Crowdshipping in Last-Mile Deliveries," Sustainability, MDPI, vol. 14(20), pages 1-17, October.
    15. Tinessa, Fiore & Marzano, Vittorio & Papola, Andrea, 2020. "Mixing distributions of tastes with a Combination of Nested Logit (CoNL) kernel: Formulation and performance analysis," Transportation Research Part B: Methodological, Elsevier, vol. 141(C), pages 1-23.
    16. Masiero, Lorenzo & Hrankai, Richard, 2022. "Modeling tourist accessibility to peripheral attractions," Annals of Tourism Research, Elsevier, vol. 92(C).
    17. Behrend, Moritz & Meisel, Frank & Fagerholt, Kjetil & Andersson, Henrik, 2019. "An exact solution method for the capacitated item-sharing and crowdshipping problem," European Journal of Operational Research, Elsevier, vol. 279(2), pages 589-604.
    18. Rico Krueger & Akshay Vij & Taha H. Rashidi, 2018. "A Dirichlet Process Mixture Model of Discrete Choice," Papers 1801.06296, arXiv.org.
    19. Bergantino, Angela S. & Bierlaire, Michel & Catalano, Mario & Migliore, Marco & Amoroso, Salvatore, 2013. "Taste heterogeneity and latent preferences in the choice behaviour of freight transport operators," Transport Policy, Elsevier, vol. 30(C), pages 77-91.
    20. Parsons, George R. & Hidrue, Michael K. & Kempton, Willett & Gardner, Meryl P., 2014. "Willingness to pay for vehicle-to-grid (V2G) electric vehicles and their contract terms," Energy Economics, Elsevier, vol. 42(C), pages 313-324.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:187:y:2024:i:c:s0965856424002258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.