Are consumers ready to pay extra for crowd-shipping e-groceries and why? A hybrid choice analysis for developing economies

Abstract

This paper presents the behavioral study's results on willingness-to-pay the extra money by the customers for e-groceries deliveries based on crowd-shipping. The proposed methodology was tested for Ukraine, i.e., a developing country where the crowd-shipping services are under development conditions. To account for the behavior complexity of the consumers who have not faced the crowd-shipping services in the past, the choice model was enhanced with a latent variable. The findings indicate the revealed readiness of the e-shoppers to pay extra money for crowd-shipping delivery if it provides more flexible and consumer-oriented service. The expected environmental impact of the crowd-shipping delivery was not considered as important by the e-shoppers, which is explained by low concerns about the environment and car-oriented mobility in the considered case study.