MARKETING AND MANAGEMENT COMMUNICATION


Browsing the Aisles or Browsing the App? How Online Grocery Shopping is Changing What We


JURA LIAUKONYTE PROFESSOR


Charles H. Dyson School of Applied Economics and Management


Cornell SC Johnson College of Business Cornell University


Buy Marketing Science, 43, 3, May-June 2024 LINK TO PAPER LINK TO JURA LIAUKONYTE VIDEO LINK TO NATHAN YANG VIDEO


Co-authors • Jura Liaukonyte


Professor, Charles H. Dyson School of Applied Economics and Management, Cornell SC Johnson College of Business, Cornell University


• Nathan Yang, Gies College of Business, University of Illinois Urbana-Champaign • Sai Chand Chintala, Lee Kong Chian School of Business, Singapore Management University


Summary In recent decades, conventional brick-and-mortar (BM) grocery stores have


optimized their physical space, including store layouts, shelf displays, and endcaps, all with the primary objective of maximizing revenue. In the digital sphere, the grocery shopping experience predominantly revolves around a mobile app–based interface, resulting in reduced reliance on physical store arrangements and increasing the importance of “digital” shelves. As the shift toward online grocery shopping continues, it is important to understand how this channel shapes consumer behavior.


Tis paper investigates the systematic differences between online and offline grocery shopping baskets using data from approximately two million brick- and-mortar and Instacart trips. Te authors apply unsupervised machine learning algorithms agnostic to the shopping channel to identify what constitutes a typical food shopping trip for each household, and they find that food shopping basket variety is significantly lower for online shopping trips.


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| RESEARCH WITH IMPACT: CORNELL SC JOHNSON COLLEGE OF BUSINESS • 2024 EDITION


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