Premium E-Grocery: Exploring Value in Logistics Integrated Service Solutions

International Conference for Prospects for Research in Transport and Logistics on a Regional Global Perspective, Istanbul, Turkey

6 Pages Posted: 19 Mar 2009

See all articles by Burcin Bozkaya

Burcin Bozkaya

New College of Florida; Sabanci University - Sabanci University

Ronan de Kervenoael

affiliation not provided to SSRN

Selcen Ozturkcan

Department of Marketing, School of Business and Economics, Linnaeus University

Date Written: February 12, 2009

Abstract

E-grocery is gradually becoming viable or a necessity for many families. Yet, most e-supermarkets are seen as providers of low value "staple" and bulky goods mainly. While each store has a large number of SKU available, these products are mainly necessity goods with low marginal value for hedonistic consumption. A need to acquire diverse products (e.g., organic), premium priced products (e.g., wine) for special occasions (e.g., anniversary, birthday), or products just for health related reasons (e.g., allergies, diabetes) are yet to be served via one-stop e-tailers. In this paper, we design a mathematical model that takes into account consumers' geo-demographics and multi-product sourcing capacity for creating critical mass and profit. Our mathematical model is a variant of Capacitated Vehicle Routing Problem with Time Windows (CVRPTW), which we extend by adding intermediate locations for trucks to meet and exchange goods. We illustrate our model for the city of Istanbul using GIS maps, and discuss its various extensions as well as managerial implications.

Keywords: Dynamic consumer-led demand, e-grocery, logistics, premium goods

JEL Classification: M10

Suggested Citation

Bozkaya, Burcin and Kervenoael, Ronan de and Ozturkcan, Selcen, Premium E-Grocery: Exploring Value in Logistics Integrated Service Solutions (February 12, 2009). International Conference for Prospects for Research in Transport and Logistics on a Regional Global Perspective, Istanbul, Turkey. Available at SSRN: https://ssrn.com/abstract=1362604 or http://dx.doi.org/10.2139/ssrn.1362604

Burcin Bozkaya

New College of Florida ( email )

5800 Bay Shore Road
Sarasota, FL 34243-2109
United States

Sabanci University - Sabanci University ( email )

Orhanli
Istanbul, Tuzla 34956
Turkey

Ronan de Kervenoael

affiliation not provided to SSRN ( email )

Selcen Ozturkcan (Contact Author)

Department of Marketing, School of Business and Economics, Linnaeus University ( email )

Kalmar, SE-391 82
Sweden
+46 (48) 049-7189 (Phone)

HOME PAGE: http://lnu.se/en/staff/selcen.ozturkcan/

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