Source: UNIVERSITY OF GEORGIA submitted to NRP
ONLINE GROCERY SHOPPING: IMPACT ON CONSUMER FOOD PURCHASES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0182957
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Aug 1, 1999
Project End Date
Jul 31, 2004
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF GEORGIA
200 D.W. BROOKS DR
ATHENS,GA 30602-5016
Performing Department
COL OF FAMILY & CONSUMER SCI
Non Technical Summary
Determine key factors in online grocery shopping services satisfaction. The project is to determine what the key factors are in online grocery shopping services that signal trust and to analyze the components of online grocery shopping Web sites to learn if the key factors that signal trust are present in those Web sites.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60760103010100%
Knowledge Area
607 - Consumer Economics;

Subject Of Investigation
6010 - Individuals;

Field Of Science
3010 - Economics;
Goals / Objectives
The major objective of this study is to determine what the key factors are in online grocery shopping services that signal trust and to analyze the components of online grocery shopping Web sites to learn if the key factors that signal trust are present in those Web sites.
Project Methods
Two existing data sets will be analyzed to learn what key factors consumers believe signal trust in an online grocery shopping Web site. Online grocery shopping Web sites will be examined to determine to what extent the key factors that signal trust are present in the Web site.

Progress 08/01/99 to 07/31/04

Outputs
The research demonstrated that while a primary market for online grocery shopping services is higher income consumers who use the service for convenience, another important market is consumers who value the service because of physical or transportation limitations. Additional research of websites indicated that the information consumers need to make judgments about the credibility of a site often is not available on websites. While most sites do a good job of describing their geographic location and methods of customer contact as well as posting a privacy policy, the majority of sites fail to provide consumers with information about the timeliness of their price data and do not reveal potential conflicts of interest. Also important to note is that when consumers are unexpectedly asked to provide personally-identifying information at referral sites for no apparent valid reason, the credibility of the site may suffer.

Impacts
This work will help consumers to better understand the choices they make when they buy groceries online. It will help retailers to design online grocery shopping services that better serve consumers' needs and are more likely to be profitable. Expansion of the project to understand the role of trust in other online transactions will extend the expected impact of the project.

Publications

  • Dai, X., & Cude, B. (2004). Differences in Internet users' on-line activities: The influence of their characteristics on what they do on-line. In J. Fox (Ed.), 2004 Eastern Family Economics Resource Management Association Annual Conference Proceedings, pp. 88-100.
  • Huh, J., & Cude, B.J. (2004). Is the information fair and balanced in direct-to-consumer prescription drug websites? Journal of Health Communications, 9, 1-12.
  • Mayer, R.N., Huh, J., & Cude, B.J. (2005). Cues of credibility and price performance of life insurance comparison Web sites. The Journal of Consumer Affairs.


Progress 01/01/03 to 12/31/03

Outputs
A primary objective is to examine the role of trust in online sales. Work is ongoing to examine the concept of trust in online sales environments other than grocery shopping. Two additional datasets were collected for this work and manuscripts have been prepared and submitted for publication to journals. Two additional papers were published in proceedings.

Impacts
This work will help consumers to better understand the choices they make when they buy groceries online. It will help retailers to design online grocery shopping services that better serve consumers' needs and are more likely to be profitable. Expansion of the project to understand the role of trust in other online transactions will extend the expected impact of the project.

Publications

  • Mayer, R.N., Huh, J., & Cude, B.J. (2003). Terminal prognosis: Cue-based trust of life insurance shopping sites. In P. Bonner (Ed.), Consumer Interests Annual. Available at: http://www.consumerinterests.org/public/articles/index.html?cat=264
  • Mayer, R.N., Huh, J., & Cude, B.J. (2003). Trust and transparency of life insurance comparison web sites. In S. Burton (Ed.), Proceedings, 2003 American Marketing Association Marketing and Public Policy Conference.


Progress 01/01/02 to 12/31/02

Outputs
Further analysis was completed on an existing data set obtained from consumers using an online grocery shopping service to buy groceries. In addition, the project was expanded to examine the concept of trust in other online sales environments. Since the last progress report was submitted, a total of five journal articles and three papers were published (one additional paper is in press) based on this work.

Impacts
This work will help consumers to better understand the choices they make when they buy groceries online. It will help retailers to design online grocery shopping services that better serve consumers' needs and are more likely to be profitable.

Publications

  • Huang, C.L., Epperson, J.E., Cude, B.J., & Woo, B-J. (2002, Summer). The new low-price food retailer in town. Choices, pp. 6-9.
  • Morganosky, M.A., & Cude, B.J. (2002). Consumer demand for online food retailing: Is it really a supply side issue? International Journal of Retail & Distribution Management, 30(10), 451-458.
  • Cude, B.J., & Morganosky, M.A. (2001). Why do consumers cross-shop between different types of food retail outlets? Journal of Food Distribution Research, 32(2), 14-23.
  • Morganosky, M., & Cude, B.J. (2000). Large format retailing in the U.S.: A consumer experience perspective. Journal of Retailing and Consumer Services, 7(4), 215-222.
  • Huh, J., & Cude, B.J. (2002). A content analysis of risk information in direct-to-consumer prescription drug advertising. [Abstract.] In L. Carlson & R. Laczniak (Ed.), Marketing and Public Policy: New Directions for Public Policy, (pp. 146-149). Clemson, SC: Clemson University.
  • Li, Y., Lee, J., & Cude, B. (2002). Interested in adopting online trading? Predicting future adopters of online trading. In K.R. Evans & L.K. Scheer (Ed.), The Proceedings, American Marketing Association Winter Educators' Conference, (pp. 250-256).
  • Cude, B.J., & Morganosky, M. (2000). Online grocery shopping: An analysis of current opportunities and future potential. In D. Eastwood (Ed.), Consumer Interests Annual, (pp. 95-100). Columbia, MO: American Council on Consumer Interests.


Progress 01/01/01 to 12/31/01

Outputs
A third article was published based on earlier work. Met with grocery industry individuals to secure cooperation for a survey but was unsuccessful. Submitted a grant to increase resources but the grant was not funded. Am working with other researchers on another grant possibility.

Impacts
This work will help consumers to better understand the choices they make when they buy groceries online. It will help retailers to design online grocery shopping services that better serve consumers' needs and are more likely to be profitable.

Publications

  • Morganosky, M.A., & Cude, B.J. (2001). Consumer responses to online food retailing. Journal of Food Distribution Research, 32(1), 5-17.
  • Woo, B.J., Huang, C., Epperson, J., & Cude, B. (2001). Effect of a new WalMart supercenter on local retail food prices. Journal of Food Distribution Research, 32 (1), 173-181.


Progress 01/01/00 to 12/31/00

Outputs
Data collected in Fall 1999 from 513 consumers using an online grocery shopping service were coded and analyzed. In addition, a research proposal to extend the research was submitted. Two journal articles were published and a third is under review.

Impacts
This work will help consumers to better understand the choices they make when they buy groceries online. It will help retailers to design online grocery shopping services that better serve consumers' needs and are more likely to be profitable.

Publications

  • Cude, B.J., and Morganosky, M. 2000. Consumer response to online grocery shopping. International Journal of Retail and Distribution Management. 28:17-26.
  • Cude, B.J., and Morganosky, M. 2000. Online grocery shopping: An analysis of current opportunities and future potential. In D. Eastwood (Ed.), Proceedings of the American Council on Consumer Interests Annual Conference, pp. 95-100. Columbia, MO: American Council on Consumer Interests.
  • Morganosky, M., and Cude, B.J. 2000. Large format retailing in the U.S.: A consumer experience perspective. Journal of Retailing and Consumer Services. 7:215- 222.


Progress 01/01/99 to 12/31/99

Outputs
Further analysis was completed on an existing data set obtained from consumers using an online grocery shopping service to buy groceries. Two journal articles based on this work have been accepted for publication in 2000. In Fall 1999, we collected data online from 513 consumers using an online grocery shopping service. Coding is underway.

Impacts
This work will help consumers to better understand the choices they make when they buy groceries online. It will help retailers to design online grocery shopping services that better serve consumers' needs and are more likely to be profitable.

Publications

  • Morganosky, M.A., & Cude, B.J. (1999). Expansion of non-traditional food retail outlets: Effect on consumer welfare. In S. Thompson (Ed.), Food and Agricultural Marketing Consortium Conference Proceedings. Available at www.ag.uiuc.edu/famc/Jan99/conf/menu.html.