Peapod Online Case Study

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Peapod Online Grocery Case Analysis

Abstract
This paper explores Peapod Online Grocery (2008) and its possibilities for success and failure based on several types of consumer behaviors. Most analysts do not expect the online grocery business to become more popular than the 8 to 10 percent of consumers that are estimated to purchase their products online. Parkinson, one of the founders of Peapod could not disagree more. “He states that this strategy can leverage the buying power of Ahold to make higher volume, lower priced purchases, lower distribution and transportation costs” ( Peter & Olson, 2010). The types of consumers attracted to online grocery shopping are also discussed as well as why these consumers find online grocery services to be convenient.

Peapod Grocery Case Analysis
Peapod online grocery was founded in 1989 by brothers Andrew and Thomas Parkinson. Back in the early 1990’s, Andrew and Thomas Parkinson believed that they had a sure winner with Peapod. Dual income families with little time can go online and do their grocery shopping in a matter of minutes. Consumers can browse the aisles on their home computer and place orders online, by fax machine or by telephone. The orders are then processed at affiliating stores and delivered to homes with in a 90 minute window. Peapod has grown from a small family shopping and delivery service in Illinois to America’s leading Internet grocer. Peapod delivers to more than 23 million orders across 24 United States markets. Consumer Attitudes and Behaviors

According to Peter and Olson, “the success of marketing strategies depends on maintaining and changing overt consumer behavior, not just influencing affect and cognition” (Peter & Olson, 192). Overt behavior refers to the external actions that are observable leads many analysts to think it is a simple phenomenon. Overt behavior is complex and a critical component of consumer analysis. Consumers often have favorable attitudes...
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