Exploring consumer segments for online food provisioning services: Online supermarkets vs. alternative food networks

Abstract

Recent years have witnessed a surge in online food provisioning services spanning from online mass retail to alternative food networks with digital sales platforms. Hence, enhancing our understanding of consumer preferences in the digital food space is vital, as digitalization holds significant potential to alter consumer habits within the food sector. To address this, we surveyed a representative sample of Norwegian consumers. We employed best-worst scaling to assess their preferences for eighteen characteristics derived from a variety of online food provisioning services. The characteristics covered business model elements such as key partners, resources, activities, distribution channels, and customer relations. Our findings identify two consumer segments. The first segment, labeled the Convenience segment, prioritizes efficient delivery and user-friendly interfaces, characteristics that resonate with online supermarket services. The second segment labeled the Local segment, prioritizes a wide range of locally and sustainably produced food in line with the ethos of alternative food networks. Notably, the latter segment, accounting for 48 % of the respondents, views several of the convenience characteristics derived from online mass retail as important. Taking the convenience preferences of the Local segment into account could broaden the appeal of alternative food networks and other sustainability-oriented niche providers to a wider range of consumers.