2007
Working Paper
HBS Working Paper Series

I'll Have the Ice Cream Soon and the Vegetables Later: A Study of Online Grocery Purchases and Order Lead Time

By: Katherine L. Milkman, Todd Rogers and Max H. Bazerman

Format:Print
| Language:English
| Pages:36

Abstract

How do decisions made for tomorrow or two days in the future differ from decisions made for several days in the future? We use data from an online grocer to address this question. In general, we find that as the delay between order completion and delivery increases, grocery customers spend less, order a higher percentage of "should" items (e.g., vegetables), and order a lower percentage of "want" items (e.g., ice cream), controlling for customer fixed effects. These findings are all consistent with theories suggesting that people's should selves exert more influence over their choices the further in the future outcomes will be experienced. However, orders placed for delivery tomorrow versus two days in the future do not show this want/should pattern, and we discuss a potential explanation.

Keywords

Online Technology; Food; Decision Choices and Conditions; Conflict and Resolution; Emotions; Cognition and Thinking; Retail Industry; Food and Beverage Industry

Citation

Milkman, Katherine L., Todd Rogers, and Max H. Bazerman. "I'll Have the Ice Cream Soon and the Vegetables Later: A Study of Online Grocery Purchases and Order Lead Time." Harvard Business School Working Paper, No. 07-078, April 2007. (Revised December 2007, May 2008, September 2008.)