New Economic Approaches to Consumer Welfare and Nutrition Conference Proceedings Food and Agricultural Marketing Consortium Alexandria, Virginia January 14-15, 1999 EXPANSION OF NON-TRADITIONAL FOOD RETAIL OUTLETS: EFFECT ON CONSUMER WELFARE ERS Commissioned Paper for the January 1999 Meeting of the Food and Agricultural Marketing Consortium *Michelle A. Morganosky Associate Professor of Consumer and Retail Marketing Department of Agricultural and Consumer Economics University of Illinois 326 Mumford Hall 1301 West Gregory Drive Urbana, IL 61801-3681 Tel: 217-333-0737 -or- 217-333-3217 Fax: 217-333-5538 Email:
[email protected] Brenda J. Cude Professor and Head Department of Housing and Consumer Economics The University of Georgia 215 Dawson Hall Athens, GA 30602-3622 Tel: 706-542-4856 -or- 706-542-4857 Fax: 706-542-4397 Email:
[email protected] *Send correspondence to Michelle A. Morganosky EXPANSION OF NON-TRADITIONAL FOOD RETAIL Version: March 3, 1999 BC OUTLETS: EFFECT ON CONSUMER WELFARE ABSTRACT In this study three different methods of data collection (telephone interviews/focus groups/on-line consumer surveys) were used to assess the impact of non-traditional retail outlets on consumer welfare. We analyzed consumer cross patronage between supermarkets and non- traditional food retail channels, examined reasons for cross patronage, and made a preliminary assessment of consumer response to one of the newest retail channels: on-line food shopping. Telephone interviews were conducted in a medium-size market with 300 individuals and focus groups were conducted in two major metropolitan markets and one medium-size market. The on-line survey consisted of responses from 243 on-line food shoppers in six different markets.