RE-CALIBRATING NEXT NORMAL CUSTOMER RELATIONSHIP FOR REPURCHASE IN ONLINE GROCERY SHOPPING

Authors

  • Dewi Tamara Magister Manajemen BINUS Business School, Universitas Bina Nusantara, Jl. Hang Lekir I No. 6, Senayan, Kebayoran Baru, Jakarta Selatan, DKI Jakarta, Indonesia,
  • Asnan Furinto Magister Manajemen BINUS Business School, Universitas Bina Nusantara, Jl. Hang Lekir I No. 6, Senayan, Kebayoran Baru, Jakarta Selatan, DKI Jakarta, Indonesia,
  • Willy Gunadi Magister Manajemen BINUS Business School, Universitas Bina Nusantara, Jl. Hang Lekir I No. 6, Senayan, Kebayoran Baru, Jakarta Selatan, DKI Jakarta, Indonesia,
  • Arif Aji Mukti Magister Manajemen BINUS Business School, Universitas Bina Nusantara, Jl. Hang Lekir I No. 6, Senayan, Kebayoran Baru, Jakarta Selatan, DKI Jakarta, Indonesia,
  • Bernadetta I.N Kusumawaty Magister Manajemen BINUS Business School, Universitas Bina Nusantara, Jl. Hang Lekir I No. 6, Senayan, Kebayoran Baru, Jakarta Selatan, DKI Jakarta, Indonesia,
  • Josehp Liauw Magister Manajemen BINUS Business School, Universitas Bina Nusantara, Jl. Hang Lekir I No. 6, Senayan, Kebayoran Baru, Jakarta Selatan, DKI Jakarta, Indonesia,

DOI:

https://doi.org/10.53555/eijbms.v7i4.127

Keywords:

Online grocery, consumer behaviour, customer satisfaction, repurchase intention, intention to switch, COVID-19 Paper type Research Paper

Abstract

Purpose – This study aims to identify key experiences driving customer’s online grocery shopping behavioural outcomes for repurchase intention and intention to stay.

Methodology – Using disproportionate random sampling method continued with cross-sectional method, 250 useful samples from customers who experienced online grocery shopping during pandemic, were tested one time. Findings – The study confirmed a clear shift from traditional to online grocery shopping during pandemic, revealing customer service, delivery service, online shopping experiences and customer satisfaction were key experiences driving customers’ repurchase intention and intention to switch, while product experience was not supported.

Practical implications – for sustainable future, industry players should be adaptive to COVID-19 crisis by recalibrating their relationships 

Originality/ value – responding to the call for recalibrating customer relationship, this research paper establishing online grocery shopping clear shift with customer experiences as key drivers driving customers experiences, expectations, repurchase intentions and intention to switch, both in positive and negative manner, during pandemic covid-19.

 

References

. Antón, C., Camarero, C. and Carrero, M. (2007). The mediating effect of satisfaction on consumers’ switching intention. Psychology & Marketing, Vol. 24 No. 6, pp. 511-538.

. Aprilianti, Ira, and Amanta, Felippa. (2020). Promoting Food Safety in Indonesia's Online Food Delivery Services.

. Belanche, C., Casaló, L. V., & Guinalíu, M. (2012). Website Usability, Consumer Satisfaction and the Intention to Use a Website: The Moderating Effect of Perceived Risk. Journal of Retailing and Consumer Services, 19(1), 124–132. doi:10.1016/j.jretconser.2011.11.001

. Caruana, A., (2002). Service loyalty: the effects of service quality and the mediating role of customer satisfaction.

. Eur. J. Mark. 36 (7/8), 811–828.

. Crunchbase (2020). HappyFresh - Company Profile & Funding. Jakarta.

. Cronin, B. Jr, Brady, M. K., & Hult, G. T. M. (2002). Assessing the Effects of Quality, Value, and Customer Satisfaction on Consumer Behavioral Intentions in Service Environments. Journal of Retailing, 76(2), 193–218. Deloitte, (2020). Deloitte Indonesia Business & Industry Updates: The pivotal role of trust: Impact of Covid-19 on the food and beverage sector in Indonesia.

. Deloitte, (2020). Impact of the COVID-19 crisis on short and medium term consumer behavior.

. Dick, Alan S., Basu, K., 1994. Customer loyalty: toward an integrated conceptual framework. J. Acad. Mark. Sci. 22, 99–113.

. Fabric. (2020). The Impact of Covid-19 on Online Grocery: Why the coronavirus pandemic in 2020 will change the grocery industry forever in United States.

. Fiore, A.M., Kim, J. and Lee, H.H. (2005). Effect of image interactivity technology on consumer responses toward the online retailer. Journal of Interactive Marketing. Vol. 19 No. 3, pp. 38-53.

. Grashuis, J., Skevas, T. & Segovia, M.S. (2020). Grocery Shopping Preferences during the COVID-19 Pandemic Galipoglu, E., Kotzab, H., Teller, C., Hüseyinoglu, I.Ö.Y. and Pöppelbuß, J. (2018). Omni-channel retailing research – state of the art and intellectual foundation. International Journal of Physical Distribution & Logistics Management. Vol. 48 No. 4, pp. 365-390.

. HappyFresh (2020). Company Website, Jakarta McKinsey Survey: Indonesian consumer sentiment during the coronavirus crisis (2020)

. Li, J., Hallsworth. A.G.and Coca-Stefaniak, J.A. (2020). The changing grocery shopping behavior of Chinese consumers at the outset of the COVID-19 outbreak.

. Nielsen, (2020). Asian Consumers Are Rethinking How They Post Covid19”

. Singh R., (2019). Why do online grocery shoppers switch or stay? An exploratory analysis of consumer’s response to online grocery shopping experience. International Journal of Retail & Distribution Management. Vol. 47 No. 12, 2019 pp. 1300-1317.

. Szymkowiak,A, Gazcek, P. Jeganathan, K. and Kulawik, P. (2020). The impact of emotions on shopping behavior during epidemic. What business can do to protect customers

. World Health Organization (2020). COVID-19 and Food Safety: Guidance for Food Businesses: interim guidance.

. World Food Programme (2020), “INDONESIA:COVID-19: Economic and Food Security Implications”

. Survey: Asian consumer sentiment during the coronavirus crisis (2020)

. United Nations (2020). Policy Brief: The Impact of COVID-19 on Food Security and Nutrition.

. Jin, Byoungho and Jin Yong Park (2006). The Moderating Effect of Online Purchase Experience on the Evaluation of Online Store Attributes and the Subsequent Impact on Market Response Outcomes. Advances in Consumer Research. 33, 203–11.

. Potia, A., Dahiya, K. (2020). Survey: Optimistic, digital, generous: COVID-19’s impact on Indonesian consumer sentiment. Jakarta: McKinsey

. Potia, A., Dahiya, K. (2020). Survey: Food retail in Indonesia during the COVID-19 pandemic. Jakarta: McKinsey

. Kuijpers, D.; Wintels, S., Yamakawa, N. (2020). Survey: Reimagining food retail in Asia after COVID-19. Australia, China, India, Indonesia, Japan, South Korea, and Thailand: McKinsey.

. Mehta, S., Saxena, T. & Porohit, N. (2020). The New Consumer Behaviour Paradigm amid COVID-19: Permanent or Transient?

. Martin-Neuninger, R. and Ruby, M.B. (2020). What does Food Retail Research Tell Us about The Implications of Coronavirus (COVID-19) for Grocery Purchasing Habits?

. USA Food & Drug Administration. (2020). COVID-19 Information for Consumers – Shopping for Food World Health Organization & Food and Agriculture Organization of the United Nations. (2009). Food Hygiene World Food Programme, (2020). INDONESIA: Covid-19 Economic and Food Security Implications (3rd Edition)

. KANTAR Survey. (2020). Covid-19 Impact on Indonesian Attitudes &Behaviours: Learning for Brands

. UNITED NATIONS (2020). Policy Brief : The Impact of COVID-19 on Food Security and Nutrition

. Meyer, C. and Schwager, A. (2007). Understanding customer experience. Harvard Business Review. Vol. 85 No. 2, p. 116.

. Verhoef, P.C., Lemon, K.N., Parasuraman, A., Roggeveen, A., Tsiros, M. and Schlesinger, L.A. (2009). Customer experience creation: determinants, dynamics and management strategies. Journal of Retailing. Vol. 85 No. 1, pp. 31-41.

. Klaus, P. (2013). The case of Amazon.com: towards a conceptual framework of online customer service experience (OCSE) using the emerging consensus technique (ECT). Journal of Services Marketing. Vol. 27 No. 6, pp. 443-457.

. Rose, S., Hair, N. and Clark, M. (2012). Online customer experience in e-retailing: an empirical model of antecedents and outcomes. Journal of Retailing. Vol. 88 No. 2, pp. 308-322.

. Shobeiri, S., Laroche, M. and Mazaheri, E. (2013). Shaping e-retailer’s website personality: the importance of experiential marketing. Journal of Retailing and Consumer Services. Vol. 20 No. 1, pp. 102-110.

. Mathwick, C., Malhotra, N. and Rigdon, E. (2001). Experiential value: conceptualization, measurement and application in the catalog and Internet shopping environment. Journal of Retailing, Vol. 77 No. 1, pp. 39-56. Overby, J.W. and Lee, E.J. (2006). The effects of utilitarian and hedonic online shopping value on consumer preference and intentions. Journal of Business Research. Vol. 59 Nos 10/11, pp. 1160-1166.

. Kim, H. and Lennon, S.J. (2010). E-atmosphere, emotional, cognitive, and behavioral responses. Journal of Fashion Marketing and Management: An International Journal, Vol. 14 No. 3, pp. 412-428.

. Kahn, B.E. (2018). The Shopping Revolution: How Successful Retailers Win Customers in an Era of Endless Disruption. Wharton Digital Press, PA.

. Melis, K., Campo, K., Lamey, L. and Breugelmans, E. (2016). A bigger slice of the multichannel grocery pie: when does consumers’ online channel use expand retailers’ share of wallet? Journal of Retailing. Vol. 92 No. 3, pp. 268-286.

. Singh, R., Soderlund, M. (2019). Extending the experience construct: an examination of online groceries shopping. European Journal of Marketing. Emerald Publishing Limited 0309-0566.

. Oliver, R.L. (1997). Satisfaction: A Behavioural Perspective on the Customer. Boston, MA: McGraw Hill. Shankar, Venkatesh, Amy K. Smith, and Arvind Rangaswamy (2003). Customer Satisfaction and Loyalty in Online and Offline Environments. International Journal of Research in Marketing, 20 (2), 153175.

. Ramus, K. and Nielsen, A.N. (2005). Online grocery retailing: what do consumers think? Internet Research. Vol. 15 No. 3, pp. 335-352.

. Boyer, K.K. and Hult, G.T.M. (2005). Customer behavior in an online ordering application: a decision scoring model. Decision Sciences, Vol. 36 No. 4, pp. 569-597.

. Wolfinbarger, M. and Gilly, M.C. (2003). eTailQ: dimensionalizing, measuring and predicting etail quality. Journal of Retailing, Vol. 79 No. 3, pp. 183-198.

. Park, J.Y., Thangam, D. (2019). What makes customers repurchase grocery products from online stores in Korea. International Journal of E-Business Research. Vol. 15. Issue 4.

. Lacey, S., Suh, J., & Morgan, R. M. (2007). Differential Effects of Preferential Treatment Levels on Relational Outcomes. Journal of Services Research, 9(3), 241–256.

. Mittal, V., & Kamakura, W. A. (2001). Satisfaction, repurchase intent, and repurchase behavior: Investigating the moderating effect of customer characteristics. JMR, Journal of Marketing Research, 38(1), 131–142.

. Seiders, V., Voss, G. B., Grewal, D., & Godfrey, A. L. (2005). Do Satisfied Customers Buy More? Examining Moderating Influences in a Retailing Context. Journal of Marketing, 69(4), 26–43.

. Anne, M. (2003). Share of wallet in retailing: The effects of customer satisfaction, loyalty cards and shopper characteristics. Journal of Retailing, 79(2), 97–106.

. La, Y. (2004). What Influences the Relationship between Customer Satisfactions and Repurchase Intention? Investigating the Effects of Adjusted Expectations and Customer Loyalty. Psychology and Marketing, 21(5), 351– 373.

. Ghazali, E., Nguyen, B., Mutum, D.S., Mohd-Any, A.A., 2016. Constructing online switching barriers: examining the effects of switching costs and alternative attractiveness on e-store loyalty in online pure-play retailers. Electron. Mark. 26 (2), 157–171.

. Schlosser, A.E., White, T.B., Lloyd, S.M., 2006. Converting web site visitors into buyers: how web site investment increases consumer trusting beliefs and online purchase intentions. J. Mark. 70, 133–148.

Downloads

Published

2023-02-24