Interesting. I wonder if that's really enough. When it comes to groceries the vast majority of people shop based on price. Instacart charges a markup on every item purchased. In this market people seem to value price over convenience especially when the convenience difference is small.
I don't agree with that sentiment. I think your pattern detector is only taking in account on how grocery shopping is currently done. When you introduce something new into the system, it may not adhere to the same rules. There are many cases when convenience will trump price. Say you need to buy items from 10 different stores. I would rather use a service that goes to 10 different stores for me, than have myself drive to each store to hunt down each item.
When I use amazon prime, I'm very aware that the prices are sometimes more expensive than a generic brand, but I am willing to pay the small price difference for the 2-day shipping convenience. A study was released on amazon prime shoppers that showed prime customers are less affected by price. The convenience of getting something with 2-day shipping, but with a higher price trumped a cheaper item but longer delivery times. People don't always go for the lowest cost item.
> "Say you need to buy items from 10 different stores. I would rather use a service that goes to 10 different stores for me, than have myself drive to each store to hunt down each item."
I guess it depends how you shop! :) Supermarkets are there to give you the lowest prices and eliminate the need to go to more than 1 store. But I understand where you're coming from. I guess we'll have to wait and see how it works out.
Hah, I wish that were true. Supermarkets exist to make money, so they can't stock items that have low demand. If you cook ethnic foods, you'll typically need to visit several stores to buy all the ingredients for your meal.
Judging from flog's reply to my comment it's a cultural thing. In the UK the main supermarkets all have sections for ethnic foods (as the number of polish immigrants has increased for example the supermarkets have added polish food sections). Things in the US market seem to work differently.
Comments
Interesting. I wonder if that's really enough. When it comes to groceries the vast majority of people shop based on price. Instacart charges a markup on every item purchased. In this market people seem to value price over convenience especially when the convenience difference is small.
I don't agree with that sentiment. I think your pattern detector is only taking in account on how grocery shopping is currently done. When you introduce something new into the system, it may not adhere to the same rules. There are many cases when convenience will trump price. Say you need to buy items from 10 different stores. I would rather use a service that goes to 10 different stores for me, than have myself drive to each store to hunt down each item.
When I use amazon prime, I'm very aware that the prices are sometimes more expensive than a generic brand, but I am willing to pay the small price difference for the 2-day shipping convenience. A study was released on amazon prime shoppers that showed prime customers are less affected by price. The convenience of getting something with 2-day shipping, but with a higher price trumped a cheaper item but longer delivery times. People don't always go for the lowest cost item.
I guess it depends how you shop! :) Supermarkets are there to give you the lowest prices and eliminate the need to go to more than 1 store. But I understand where you're coming from. I guess we'll have to wait and see how it works out.
Hah, I wish that were true. Supermarkets exist to make money, so they can't stock items that have low demand. If you cook ethnic foods, you'll typically need to visit several stores to buy all the ingredients for your meal.
Judging from flog's reply to my comment it's a cultural thing. In the UK the main supermarkets all have sections for ethnic foods (as the number of polish immigrants has increased for example the supermarkets have added polish food sections). Things in the US market seem to work differently.