Effects of online shopping channel and price discount on near-expiry food sales

Abstract

Consumers have an aversion to purchasing near-expiry food products, which leads to enormous food waste and economic loss. Given the importance of this issue, past research has studied the effect of impending expiration date on product sales, but its focus has been limited to perishable food products. Since the expiration dates of non-perishable food products are treated as less important than those of perishable food products, we expect that the resulting effect on sales largely varies by shopping environment. With the growing importance of online shopping in food sales, we examine how the effect of impending expiration date differs between mobile and PC shopping environments. By analyzing a unique data set from an online salvage store, we find that consumer aversion toward near-expiry products is more salient in the PC shopping environment than in the mobile shopping environment. However, when there is a deeper price promotion, the between-channel difference is reduced as the sensitivity of an impending expiration date on sales increases in the mobile shopping environment. These findings not only represent novel contributions to the literature but also provide managerial implications for practitioners.