TY - JOUR
T1 - Consumers' SKU choices in an online supermarket : a latent class approach
AU - CUI, Geng
AU - WANG, Yanan
PY - 2010/5/1
Y1 - 2010/5/1
N2 - This study examines the effects of loyalty and e-marketing mix variables on the choices of online consumers at the stock-keeping-unit (SKU) level. Using a panel dataset from an online supermarket, we estimate a discrete choice model of a frequently purchased product; generate the refined smoothing constants of the loyalty variables for brand, size, and SKU; and adopt the latent class approach to address consumer heterogeneity. The findings suggest that SKU loyalty is a better predictor of consumer choices than brand and size loyalty. Although online consumers are not sensitive to the net prices of SKU alternatives, they are attracted to price promotions. While webpage display has little effect on SKU choices, speedy delivery has a positive impact. The latent class approach significantly improves model fitness and classification accuracy. Analysing consumer choices at the SKU level can help online supermarkets with promotion planning and inventory and distribution management to improve customer satisfaction and profitability.
AB - This study examines the effects of loyalty and e-marketing mix variables on the choices of online consumers at the stock-keeping-unit (SKU) level. Using a panel dataset from an online supermarket, we estimate a discrete choice model of a frequently purchased product; generate the refined smoothing constants of the loyalty variables for brand, size, and SKU; and adopt the latent class approach to address consumer heterogeneity. The findings suggest that SKU loyalty is a better predictor of consumer choices than brand and size loyalty. Although online consumers are not sensitive to the net prices of SKU alternatives, they are attracted to price promotions. While webpage display has little effect on SKU choices, speedy delivery has a positive impact. The latent class approach significantly improves model fitness and classification accuracy. Analysing consumer choices at the SKU level can help online supermarkets with promotion planning and inventory and distribution management to improve customer satisfaction and profitability.
KW - Internet retailing
KW - consumer loyalty
KW - discrete choice model
KW - online supermarket
KW - stock keeping unit (SKU)
UR - http://commons.ln.edu.hk/sw_master/2495
UR - http://www.scopus.com/inward/record.url?scp=79958117738&partnerID=8YFLogxK
U2 - 10.1080/02672570903534704
DO - 10.1080/02672570903534704
M3 - Journal Article (refereed)
SN - 0267-257X
VL - 26
SP - 495
EP - 514
JO - Journal of Marketing Management
JF - Journal of Marketing Management
IS - 5/6
ER -