This study presents an analysis of the growing market for groceries and other foodstuffs ordered via the internet or telephone for delivery to the customer's home. TThe research utilizes data from surveys of over 2,000 customers of five different home delivery grocers. The analysis utilizes two moderating variables (customer experience level and order picking method) and five primary constructs (service quality, product quality, internet quality, time-savings and behavioral intentions). The results indicate that customer perceptions of the primary constructs generally improve as they gain experience with this new method of ordering and receiving groceries. Furthermore, the operational choice of picking method is also shown to have a large impact on customer perceptions – in particular, more experienced customers generally rate the primary constructs higher for DC-based picking than for store-based picking.
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