| Abstract [eng] |
The Impact of the Discount and Free Delivery on Intention to Purchase in Online Shops Summary 92 pages (including annexes), 23 tables, 4 pictures, 101 references. The main purpose of this Master thesis is to assess the impact of the discount and free delivery offer on intention to purchase in online grocery stores. The work consists of three main parts: analysis of scientific references, development of the research methodology, which is needed to achieve the purpose of this Master thesis, and the third part of gathered empirical data, analysis, and industry insights. The essence of the thesis paper is presented in the introduction; the thesis ends with conclusions, recommendations, references and annexes. Analysis of literature presents the most common monetary and non-monetary measures for sales promotion, defines the importance of discounts and free delivery for consumers and merchants, and the impact of sales promotions on intention to purchase. The shopping cart of online groceries is defined, moreover, the most common psychographic and demographic characteristics of consumers of online grocery shopping, as well as potential situational factors and their impact on sales promotions, are determined. The analysis of previous research allows identifying models of consumer behavior: the theory of planned behavior, the technology acceptance model and the S-O-R paradigm. The models are applied during the research. The research methodology is based on the modified model of the Theory of Planned Behaviour. In addition, related variables of sales promotion form on intention to purchase are used during the research. Main hypotheses evaluate the discount of 10% and free delivery, as well as the influence of the volume of the shopping card (10 eur and 50 eur) on perceived usefulness and intention to purchase. Quantitative research instrument (questionnaire) is developed using scales from earlier studies. The authors of earlier research conclude that scales are reliable. Brief interviews with three experts of Lithuania’s grocery trade are conducted to determine the size of discount and volume of shopping carts for the factorial design experiment. Data from 293 responders is collected via online survey by random non-probability sampling. The empirical data analysis confirms that for consumers in Lithuania the influence of discount is greater than free delivery. The results reveals that for small (10 eur) shopping carts the discount is perceived as a more useful offer than for the average (50 eur) shopping carts. The study confirms that between the perceived usefulness, the experience of online shopping and hedonic and utilitarian approach to online shopping, the most important is the perceived usefulness of the offer. The correlation between the intention to purchase and the social norms (family and friend approach to online shopping) is confirmed as well. Moreover, it is concluded that the factors of perceived risk have low influence on intention to grocery shop online. Demographic analysis of respondents confirms the existence of age stereotyping. Younger consumers have more experience in online shopping compared to older consumers. And younger consumers have more hedonic approach to online shopping. Theoretical and practical analysis is the base for general conclusions and business implications. The most important insight is that in online grocery shopping, monetary sales promotion measures are more impactful on consumers of low-volume shopping carts, and a smooth process of online customer service shapes the positive experience of shopping and intention to purchase. |
