KISDI Finds Online Grocery Shopping Depends on Two Distinct Stages: Considering the Option and Making the Purchase (detail)

※ URL(Korean): https://www.kisdi.re.kr/bbs/view.do?bbsSn=114988&key=m2101113055776&pageIndex=1&sc=&sw=

KISDI Basic Research (25-09)
Changes in Retail Shopping Patterns in the Digital Transformation Era and Policy Directions

KISDI Finds Online Grocery Shopping Depends on Two Distinct Stages: Considering the Option and Making the Purchase
Different Factors Influence Each Stage, Highlighting the Need for Tailored Digital Inclusion Policies
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▲ Only about 31 out of every 100 consumers consider shopping for groceries online, while only 14 ultimately make online purchases
▲ Digital familiarity influences whether consumers consider online shopping, while digital proficiency determines whether they complete a purchase
▲ Policy simulation shows that improving digital capabilities can both increase online shopping adoption and reduce digital disparities

The Korea Information Society Development Institute (KISDI, President Sangkyu Rhee) recently published its Basic Research Report (25-09), *Changes in Retail Shopping Patterns in the Digital Transformation Era and Policy Directions*. The report provides an empirical analysis of structural changes in Korea's retail market by examining how consumers choose between online and offline shopping channels.

As online grocery shopping has expanded rapidly, consumers' purchasing behavior for groceries and daily necessities has changed significantly. While previous policy discussions have largely focused on supply-side issues such as logistics infrastructure and delivery services, relatively little attention has been paid to the constraints consumers face when recognizing and adopting online shopping as a purchasing option. The report therefore examines online grocery shopping from the consumer perspective, identifying barriers throughout the decision-making process and exploring policy measures to address them.

Unlike previous studies that assumed online and offline retail channels to be equal substitutes, this study analyzes consumer decision-making as a two-stage process. It assumes that offline shopping functions as the default option that consumers always recognize and can readily access, whereas online shopping is considered only under certain conditions depending on consumers' digital capabilities and the surrounding retail environment. Based on this framework, the researchers developed a **Default-Specific Consideration Model**, which separates consumer decisions into a **channel consideration stage**, in which consumers recognize online shopping as a possible option, and a **channel choice stage**, in which they select a purchasing channel from among the options they have considered. The model was estimated using Embrain Panel Deep Data to identify the factors influencing each stage of the decision-making process.

The analysis found that the probability of consumers considering online shopping as an option was approximately 30.6%. Among those who considered shopping online, the probability of actually choosing the online channel was 45.1%, resulting in an overall online shopping rate of approximately 13.8%. In other words, out of every 100 consumers, about 31 consider online grocery shopping, but only about 14 ultimately choose it. These findings suggest that the relatively low rate of online shopping cannot be explained solely by consumer preferences or prices. Whether online shopping is recognized as a viable option in the first place also plays a critical role.

The study further found that the ability to consider online shopping and the ability to complete an online purchase are influenced by different factors. During the consideration stage, **digital familiarity**, measured by indicators such as smartphone usage time and diversity of app use, had the greatest influence. During the purchase stage, **digital proficiency**, measured through the use of information search, productivity, and financial applications, became the key determinant. In addition, consumers living near offline stores or in areas with abundant retail facilities were consistently less likely to consider or choose online shopping.

To evaluate the potential effects of policy interventions, the researchers conducted simulation analyses under three hypothetical scenarios: improving digital familiarity by lowering awareness barriers, improving digital proficiency by reducing practical barriers to online shopping, and weakening the offline retail environment through reduced physical shopping opportunities.

Under the first scenario, improving digital familiarity increased the overall online shopping rate by 13.0% while raising online shopping adoption among older adults by approximately 37%.

Under the second scenario, improving digital proficiency increased the average online shopping rate by approximately 10%. Both scenarios were also found to reduce the gap in online shopping adoption between older and younger consumers.

Under the third scenario, weakening the offline retail environment increased the online shopping rate to approximately 19%, representing the largest increase among the three scenarios. However, the benefits were concentrated among consumers with relatively high levels of digital capability.

Shinjae Jang, Associate Research Fellow at KISDI, noted that the study demonstrates that different factors influence the two stages of consumer decision-making—considering online shopping and actually making a purchase. He emphasized that because grocery shopping involves essential daily goods, disparities in access to online shopping can translate into broader differences in everyday well-being. He added that digital inclusion policies for the retail sector should therefore move beyond simply encouraging online shopping and instead address the distinct barriers consumers face at both the consideration and purchase stages.

The report is available for download from the KISDI website ([www.kisdi.re.kr](http:///www.kisdi.re.kr)).

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KISDI Finds Online Grocery Shopping Depends on Two Distinct Stages: Considering the Option and Making the Purchase