Investigating the Effects of Consumer Traits on Preference for Last Mile Delivery Service Features: When the Product Introduces a Task

As e-commerce sales rapidly grow, so too has the breadth of product types that consumers purchase online. One of the fastest growing segments of sales online is in the large and oversized item, or big and bulky item, category. Indeed, with the both US online appliance and furniture market and the US big and bulky last-mile delivery market projected to significantly grow; significant opportunities lay ahead. However, as retailers and logistics service providers alike seek to gain a competitive advantage in this market niche, significant investments in equipment and capabilities are required, which can differ from those required in the delivery of basic consumer products. These resources are costly. However, service differentiation is key, and requires a deeper understanding of consumer preferences for delivery service of big and bulky items. In this study, we determine consumer preferences for big and bulky item delivery services and quantify the effect of consumer psychographic traits on those preferences by conducting a choice-based conjoint experiment. Our findings indicate significant effects that bear both theoretical and managerial implications.