Abstract
Understanding consumer behavior in last-mile delivery is crucial for retailers seeking to align delivery service strategies with customer preferences to gain a competitive edge. Through a systematic literature review of 61 articles from 2000 to 2024, this study identifies delivery charge as the most influential service attribute while acknowledging the varying importance of other factors across contexts. The research explores the mechanisms shaping consumer preferences and presents a conceptual framework illustrating how these preferences mediate retailer strategies through their preferences to service attributes in last-mile delivery.Amid intense competition, retailers increasingly prioritize fast and ultrafast delivery, though this service imposes significant cost burdens and operational challenges. To address these issues, some retailers have introduced incentives, such as discounts on product prices or shopping baskets, to encourage customers to opt for slower delivery. Employing the Gabor–Granger model, experimental studies reveal that delivery time, retail price, and product category significantly influence the discounts customers require for slower delivery. Notably, sustainability benefits can reduce required discounts, while default delivery times show no significant impact on customer perceptions. Interviews with industry practitioners further validate slower delivery as an effective strategy to consolidate orders, manage peak demand, and enhance operational efficiency.
Additionally, this research examines the broader implications of slower delivery, particularly concerning workforce stability, environmental sustainability, and supply chain resilience. Analyzing 27 in-depth interviews using the Gioia method suggests that slower delivery can complement fast delivery by improving logistics flexibility, mitigating risks, and strengthening resilience and recovery processes. However, challenges such as customer unfamiliarity and market competition hinder its adoption. Increasing customer awareness and advancing industry legislation are identified as key drivers for promoting slower delivery. To assist retailers, we propose a typology framework guiding the strategic adoption of fast, slower, or hybrid delivery options based on contingent factors.
This integrated research offers a nuanced understanding of last-mile delivery dynamics, providing actionable insights for retailers to determine delivery strategies while considering evolving consumer demands and sustainability goals.
| Date of Award | 29 Aug 2025 |
|---|---|
| Original language | English |
| Awarding Institution |
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| Supervisor | Vaggelis Giannikas (Supervisor) & Fotios Petropoulos (Supervisor) |
Keywords
- alternative format
- e-commerce
- retailer
- last-mile delivery
- consumer behavior
- slower delivery
- literature review
- Gabor-Granger model
- experiment studies
- interview