Shopping Mode Choice

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Shopping mode choice: Physical store shopping versus e-shopping * Ming-Hsiung Hsiao,
* Department of Information Management, Sue-Te University, 59 Hun Shan Road, Yen Chau, Kaohsiung County 824, Taiwan * Received 15 January 2008. Revised 6 June 2008. Accepted 24 June 2008. Available online 7 October 2008. * http://dx.doi.org.ezproxy.cdu.edu.au/10.1016/j.tre.2008.06.002, How to Cite or Link Using DOI * Cited by in Scopus (5)

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Abstract
This study aims to explore how consumers evaluate these time attributes; i.e., the value of time, when they are facing a shopping mode choice between physical store shopping and e-shopping. For this purpose, it conducts an experiment to acquire data on respondents’ stated preference choices between physical bookstore shopping and online bookstore shopping. It is finally found that the value of delivery time for a purchased book from an online bookstore to a consumer is approximately $0.53 per day, which means an online bookstore will have to lower a book’s price by $0.53 to attract a physical bookstore shopper if the delivery is delayed for one day. It is also found that in terms of monetary values, avoiding a shopping trip produces far more benefits than bearing waiting for the delivery of books for an online purchase. Keywords

* E-shopping;
* Shopping mode choice;
* Stated preference experiment;
* Value of travel time;
* Value of product delivery time

1. Introduction
In the past decade, the way people shop has dramatically changed. Besides shopping at physical stores, with the aid of information and communication technologies (ICT), consumers are able to shop via the Internet. This new type of shopping mode, coming in different names like e-shopping, online shopping, network shopping, Internet shopping, or Web-based shopping, featuring in freeing consumers from having to personally visit physical stores, is anticipated to greatly change people’s everyday lives. Such a high anticipation towards e-shopping has provoked multitudinous studies on this topic. Most of the existing literature, however, has focused on the advantages and disadvantages of Internet marketing ( [Pallab, 1996], [Forsythe and Shi, 2003] and [Lee and Tan, 2003]). In addition, much of it has concerned consumers’ motivation (e.g., Rohm and Swaminathan, 2004), attitude (e.g., Liao and Cheung, 2001), satisfaction (e.g., Evanschitzky et al., 2004), intention (e.g., Teo and Yu, 2005), etc., towards e-shopping. They mostly highlight the psychological constructs that dominate consumers’ e-shopping behavior, and try to correlate these constructs by formulating empirical models based on certain behavioral theories. Some of these widely used theories include the theory of reasoned action (TRA) (e.g., Shih, 2004), the technology acceptance model (TAM) (e.g., [O’Cass and Fenech, 2003], [Shih, 2004], [Ahn et al., 2004] and [Shang et al., 2005]), the theory of planned behavior (TPB) (e.g., Shim et al., 2001), and the innovation diffusion theory (IDT) (e.g., Eastin, 2002). Such a psychological perspective has been widely adopted in the marketing and information management areas in particular. Comparatively, very little of the existing literature has concerned about how consumers make the choice between e-shopping versus store shopping ( [Lee and Tan, 2003] and [Farag et al., 2007]). One of the reasons for this may be attributed to the intricate nature of the shopping activity. It has been widely recognized that shopping activity is conducted not only for the goal of goods acquisition. The appeal of traditional store shopping is multifarious, including social interaction, entertainment, movement, and trip chaining (Mokhtarian, 2004). Much of the appeal cannot be easily displaced by e-shopping, making traditional store shopping still quite competitive over e-shopping. In a conceptual analysis of the transportation impacts of B2C e-commerce, Mokhtarian (2004)...
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