Quantifying Transaction Costs in Online/Offline Grocery Channel Choice

  title={Quantifying Transaction Costs in Online/Offline Grocery Channel Choice},
  author={Pradeep Chintagunta and Junhong Chu and Javier Cebollada},
  journal={ERN: Other IO: Empirical Studies of Firms \& Markets (Topic)},
Households incur transaction costs when choosing among off-line stores for grocery purchases. They may incur additional transaction costs when buying groceries online versus off-line. We integrate the various transaction costs into a channel choice framework and empirically quantify the relative transaction costs when households choose between the online and off-line channels of the same grocery chain. The key challenges in quantifying these costs are (i) the complexity of channel choice… 
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