CONSUMER RESPONSES TO ONLINE FOOD RETAILING

Consumer behavior in the context of online food retail channels is analyzed. The research is a follow-up to an earlier study conducted in early 1998 on consumer response to online food shopping. In the 1998 study (N=243), a majority of the sample (51 percent) were "new" users of online food shopping (<6 months); 35 percent were "intermediate" users (1-6 months); and only 14 percent were "experienced" users (>6 months). In contrast, the new user segment in the follow-up study (N=412) was 29 percent; the intermediate segment was 28 percent; and the experienced group was 43 percent. Demographic profiles and shopping behaviors of respondents in the two studies are compared. Using cluster analysis, four distinct segments of online food shoppers are identified. Marketing strategy implications for online retailers and store retailers are discussed.