Innovation in the Last Mile: Exploring Factors Influencing Consumer Intention to Use In-Home Logistics Services

Abstract

The rapid growth of e-commerce has led to changes in last-mile delivery and return demands. In response, firms have introduced innovations such as in-home delivery and return pickup services. Prior literature suggests that in-home delivery and return pickup can create net positive value for firms and consumers, but factors influencing consumers' behavioral intentions are relatively unknown. Using the Waiting-Profit Chain, we hypothesize that prior experience with porch delivery risks, service type (in-home delivery versus in-home return pickup), and service structure (home versus away) influence consumer intention to use in-home logistics services. We test the hypotheses using two laboratory experiments. Our findings reveal that prior experience with porch delivery risks does not increase the likelihood of consumers choosing in-home delivery; however, providing a statement about in-home delivery being associated with low risks boosts the odds of consumers choosing this option. We also find that consumers exhibit stronger intentions to use one in-home logistics service type, return pickup, over the other, delivery. Lastly, the service structure matters such that consumers exhibit a greater intention to use in-home logistics services when they are away from home. We provide recommendations for future research and practice.