Comparing retailer purchase patterns and brand metrics for in-store and online grocery purchasing

AbstractOnline shopping is growing rapidly in many sectors, particularly in the retail grocery sector. The rise of online shopping poses some questions for retailers and manufacturers. First, to what extent does the online mode attract other retailer's customers, as opposed to one's own current in-store shoppers? Second, is online shopping resulting in more retailer cross-purchasing by consumers? Next, does brand loyalty differ across in-store and online? Lastly, how do private labels perform online compared to in-store? Using data from multiple categories in the UK, this study finds that (1) online sales for a retailer come disproportionately from its own in-store customer base; (2) there is an 'online-buying' market partition across retailers; (3) online-induced retailer cross-purchasing is increasing over time; (4) brand loyalty is somewhat higher for online purchasing; and finally (5) private-label brands enjoy slightly higher market share online than in-store.Keywords: online shoppinggrocery retailingbuying behaviourcompetitionconsumer loyalty Additional informationNotes on contributorsJohn DawesJohn Dawes is a senior researcher with the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia. His research interests focus on pricing and the effect of price promotions, brand loyalty, and market structure analysis.Magda Nenycz-ThielMagda Nenycz-Thiel is a senior researcher with the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia. Her research interests focus on private-label brands, retailing, brand performance metrics, and online shopping behaviour.