Determinants of selection behavior in online distribution channels for fresh food

Abstract

This study examines the core factors that determine consumer choices of distribution channels for fresh food during the COVID-19 pandemic, focusing on online distribution channels and the substitution patterns between online and offline distribution channels. Using 1436 responses to a survey conducted by Gallup Korea, a specialized survey agency in Korea, we adopted a multivariate probit model for the empirical analysis. The results show that consumers who pursued ease of use or had high awareness of online food delivery tended to choose online distribution channels for fresh food, unlike consumers who were sensitive to high quality or low prices. Consumers with high consumer spending, who are living in Seoul or a metropolitan area, have children of 10 years old or younger, and have a high educational level had positive relationships with the choice of an online distribution channel. Additionally, the estimates of the variance-covariance matrix showed a complementary relationship between large markets and small and medium-sized markets, with the possibility of a weak substitution effect between small and medium-sized markets and online distribution channels.