Analysis of traditional vs. 'click and collect' grocery services

Abstract

Grocery has always been recognized as one of the most competitive industries and, as retailers innovate new ways to get their goods in the hands of the consumer, it is only getting more competitive. In the past five years, online grocery sales have grown at an annual rate of 16.6% and the growth is projected to continue. The 'click and collect' method in comparison to in-store shopping has been studied previously, with research indicating substantial differences in how two groups of customers view the same retailer. Previous research has found that online customers view service quality and convenience more favorably and are more loyal than traditional customers, while traditional customers view product quality and product range quality better than online customers. Much of this research was completed over half a decade ago, and because of the rapid advancement and adoption of technology, this study aims to reexamine the differences between these two customer groups in relation to how they view a specified retailer and what behavioral intentions result from these perceptions. A survey was created and distributed online to collect data from 215 participants that have shopped at the designated retailer either in-store, through the 'click and collect' method, or both. A few differences from the original research were seen from the results gathered; there was no observed difference in how these two groups of customers view the grocer on range quality, or the sacrifice they make by selecting the retailer as their grocer. The study also yielded a significant difference in online customers viewing the quality of products ordered higher than those that shop in-store. These studies of customer perceptions provide information for grocery retailers to improve their future strategies to held them attract and maintain customers, which is very important in the competitive environment.