Consumers' SKU choices in an online supermarket : a latent class approach
Document Type
Journal article
Source Publication
Journal of Marketing Management
Publication Date
5-1-2010
Volume
26
Issue
5/6
First Page
495
Last Page
514
Keywords
Internet retailing, consumer loyalty, stock keeping unit (SKU), online supermarket, discrete choice model
Abstract
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.
DOI
10.1080/02672570903534704
Print ISSN
0267257X
E-ISSN
14721376
Publisher Statement
Copyright © 2010 Westburn Publishers Ltd
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Cui, G., & Wang, Y. (2010). Consumers' SKU choices in an online supermarket: A latent class approach. Journal of Marketing Management, 26(5/6), 495-514. doi: 10.1080/02672570903534704