The Intera ctions between E-Shopping and Store Shopping: A C ase Study of the Twin Cities Final Report Pre p are d b y: Xinyu (J aso n) C a o Fra nk D o u m a F a y C le a v el a n d Zhiyi Xu Humphrey Institute of Public Affairs University of Minnesota CTS 10-12 Technical Report Documentation Page 1. Report No. 2. 3. Recipients Accession No. CTS 10-12 4. Title and Subtitle 5. Report Date The Interactions between E-Shopping and Store Shopping: A August 2010 Case Study of the Twin Cities 6. 7. Author(s) 8. Performing Organization Report No. Xinyu (Jason) Cao, Frank Douma, Fay Cleaveland, and Zhiyi Xu 9. Performing Organization Name and Address 10. Project/Task/Work Unit No. Humphrey Institute of Public Affairs University of Minnesota 11. Contract (C) or Grant (G) No. 301 19th Ave. S CTS Project #2009040 Minneapolis, MN 55455 12. Sponsoring Organization Name and Address 13. Type of Report and Period Covered Intelligent Transportation Systems Institute Final Report University of Minnesota 14. Sponsoring Agency Code 511 Washington Ave. SE Minneapolis, MN 55455 15. Supplementary Notes http://www.its.umn.edu/Publications/ResearchReports/ 16. Abstract (Limit: 250 words) This research aims to reveal the interactions between e-shopping and in-store shopping using a sample of Internet users in the Minneapolis-St. Paul metropolitan area. This report summarizes previous research on the interactions among spatial attributes, e-shopping, and travel behavior and makes eight recommendations for future research. Guided by the recommendations, this study adopts an innovative research design by integrating a conventional shopping survey with an activity diary. This report provides a detailed description of survey development and implementation and points out several common pitfalls in survey administration. This report also presents results on the interactions. Specifically, two ordered probit models and structural equation models were developed to investigate the influence of geography on online shopping usage and the influence of e-shopping on traditional shopping. 17. Document Analysis/Descriptors 18. Availability Statement Geography, Information technology, Communications, No restrictions. Document available from: Innovation, Internet shopping, Electronic commerce, Structural National Technical Information Services, equation modeling, Substitution, Telecommunications, Springfield, Virginia 22161 Teleshopping, Travel, Urban form 19. Security Class (this report) 20. Security Class (this page) 21. No. of Pages 22. Price Unclassified Unclassified 67 The Interactions between E-Shopping and Store Shopping: A Case Study of the Twin Cities Final Report Prepared by: Xinyu (Jason) Cao Frank Douma Fay Cleaveland Zhiyi Xu Humphrey Institute of Public Affairs University of Minnesota August 2010 Published by: The Intelligent Transportation Systems Institute Center for Transportation Studies University of Minnesota 200 Transportation and Safety Building 511 Washington Ave. SE Minneapolis, Minnesota 55455 The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the information presented herein. This document is disseminated under the sponsorship of the Department of Transportation University Transportation Centers Program, in the interest of information exchange. The U.S. Government assumes no liability for the contents or use thereof. This report does not necessarily reflect the official views or policies of the University of Minnesota. The authors, the University of Minnesota, and the U.S. Government do not endorse products or manufacturers. Any trade or manufacturers’ names that may appear herein do so solely because they are considered essential to this report. ACKNOWLEDGEMENTS The author(s) wish to acknowledge those who made this research possible. The study was funded by the Intelligent Transportation Systems (ITS) Institute, a program of the University of Minnesota’s Center for Transportation Studies (CTS). Financial support was provided by the United States Department of Transportation’s Research and Innovative Technologies Administration (RITA). Comments from Susan Handy, Mei-Po Kwan, and Pat Mokhtarian have improved the report. TABLE OF CONTENTS 1 Introduction ............................................................................................................................. 1 2 Literature Review.................................................................................................................... 3 2.1 Effect of Spatial Attributes ............................................................................................... 3 2.2 E-Shopping and Travel Behavior ..................................................................................... 6 2.2.1 Descriptive analysis through direct questioning ....................................................... 7 2.2.2 Multivariate analysis ................................................................................................. 8 2.3 Toward Improved Knowledge ....................................................................................... 13 3 Survey Development and Deployment ................................................................................. 17 3.1 Sample Selection ............................................................................................................ 17 3.2 Survey Design ................................................................................................................ 18 3.3 Survey Instrument Development .................................................................................... 21 3.4 Data Collection ............................................................................................................... 22 3.5 Initial Data Cleaning ...................................................................................................... 25 3.6 Variables ......................................................................................................................... 26 4 Data Analysis ........................................................................................................................ 33 4.1 Descriptive Analysis ...................................................................................................... 33 4.2 Multivariate Analysis on the Impact of E-shopping on Shopping Behavior ................. 33 4.2.1 Analysis method...................................................................................................... 33 4.2.2 Model results ........................................................................................................... 34 4.3 Multivariate Analysis on the Usage of Online-Shopping .............................................. 37 4.4 The Interactions among Online Shopping, Online Searching, and Store Shopping ...... 38 4.4.1 Modeling approach ................................................................................................. 38 4.4.2 Results ..................................................................................................................... 39 5 Conclusions ........................................................................................................................... 45 References ..................................................................................................................................... 47 Appendix A. Median Income of Block Groups Appendix B. Activity Diary Skip Pattern Appendix C. Survey Invitation Letter and Reminder Postcards LIST OF FIGURES Figure 1. Target Neighborhoods ................................................................................................... 18 Figure 2. Daily Responses ............................................................................................................ 24 Figure 3. Cumulative Responses................................................................................................... 24 Figure 4. Conceptual Model ......................................................................................................... 40 Figure 5. Empirical Relationship .................................................................................................. 44 LIST OF TABLES Table 1. The Effects of Spatial Attributes on Online Buying ......................................................... 5 Table 2. The Impacts of E-shopping on Travel Behavior ............................................................. 10 Table 3. Number of Respondents by Neighborhood .................................................................... 25 Table 4. Sample Characteristics .................................................................................................... 28 Table 5. Rotated Factor Matrix of the Factor Analysis ................................................................ 29 Table 6. Shopping Accessibility by Neighborhood Type ............................................................. 31 Table 7. Ordered Probit Models for In-store Shopping Frequency .............................................. 36 Table 8. Ordered Probit Model for Online-Shopping Frequency ................................................. 38 Table 9. Standardized Direct and Total Effects of the Original Model ........................................ 41 Table 10. Measures of Fit for the Original Structural Equations Model ...................................... 42 Table 11. Standardized Direct and Total Effects for the Final Model .......................................... 43 EXECUTIVE