This study analyzed the impact of expanded delivery options on consumer choice behavior within online food delivery platforms, specifically investigating how price and time fairness perceptions, as well as loss aversion, influence consumers' willingne...
This study analyzed the impact of expanded delivery options on consumer choice behavior within online food delivery platforms, specifically investigating how price and time fairness perceptions, as well as loss aversion, influence consumers' willingness to pay (WTP) for additional delivery fees and delivery option selection. As platforms increasingly offer diverse service levels—such as free, saver, and express delivery—consumers face complex trade-offs between delivery fees and delivery time. Drawing on choice theory, prospect theory, and context effect research, this study empirically examined the choice set expansion effect within this environment.
To test the hypotheses, a scenario-based choice experiment was conducted with 438 consumers who had recent experience using food delivery applications. Respondents chose between two options (free delivery vs. saver delivery) or three options (free delivery vs. saver delivery vs. express delivery), with paid options calibrated to maintain a constant price-to-time-saved ratio to isolate psychological effects from purely economic efficiency. Data were analyzed using chi-square tests, multiple linear regression, binary logistic regression, and multinomial logistic regression.
The results confirmed a significant choice set expansion effect. As the option set expanded from two to three, the preference for free delivery decreased, whereas the selection of paid delivery options increased. Price fairness and time fairness perceptions were found to have positive effects on willingness to pay for additional delivery fees. Furthermore, price loss aversion negatively influenced willingness to pay, whereas time loss aversion had a positive effect. Logistic regression analyses revealed that consumers with high price loss aversion were more likely to choose free delivery, whereas those with high time loss aversion preferred faster delivery services despite the additional cost. Notably, price fairness perception significantly influenced the choice of express delivery, suggesting that fairness judgments become more salient when consumers are able to compare diverse alternatives. In contrast, time fairness perception did not significantly affect delivery option selection.
This study contributes to the literature by empirically verifying the choice set expansion effect in the context of online food delivery platforms and by providing a comprehensive theoretical framework that integrates fairness perceptions and loss aversion to explain consumer choice behavior. Furthermore, the findings offer practical implications for platform operators in designing delivery options, developing pricing strategies, and implementing targeted marketing initiatives.