Investigating the effects of customer traits on preference for last‐mile delivery service attributes: When the product introduces a task

Abstract

As e‐commerce emerges as a central mechanism through which customers make purchases, so does the diversity of products they choose to purchase online. One of the fastest‐growing product categories is that of large and oversized items, often referred to as “big and bulky” items. This trend is particularly pronounced in the United States, with the online appliance and furniture markets experiencing substantial growth. Significant growth is also observed in the last‐mile delivery services sector for these large items. This presents a plethora of opportunities for industry stakeholders. Capitalizing on these opportunities and achieving service differentiation requires significant strategic investments in specialized equipment and capabilities by retailers and logistics service providers. These capabilities differ significantly from those typically required to deliver standard consumer products. This shift in operational context requires a deep understanding of customer preferences regarding big and bulky item delivery services. In this study, we determine customer preferences for big and bulky item delivery service features and quantify the effect of customer psychographic traits on those preferences. We accomplish this by conducting a choice‐based conjoint experiment. Our findings indicate significant effects that bear both research and managerial implications.