Date of Graduation

5-2023

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Supply Chain Management

Advisor/Mentor

Scott, Marc

Abstract

Consumer knowledge has a significant impact on consumer behavior and choice, where specific types of knowledge influences consumer shopping and purchasing decisions. As concerns about the environment and businesses operations’ effect on the environment grows, there has been various calls for facilitating increased consumer awareness on environmental issues; with the intent of this knowledge serving to influence consumer decision making in a manner that is viewed as favorable for environmental sustainability. With the substantial growth of ecommerce, one of the decisions that consumers more frequently make is that of delivery service choice as they make online purchase transactions. Various aspects of delivery to consumer homes, also referred to as last mile delivery, offer the opportunity to reduce carbon footprint. These aspects include types of packaging, whether orders are consolidated or not when going to the same location, or the type of vehicle used to make the delivery. With a range of vehicles available from conventional fuel vehicles to advanced full-electric vehicles, company and consumer preference of delivery vehicle type can have effects on the environment. In this paper, the objective is to determine whether making knowledge about the environment available as consumers make delivery service vehicle decisions can influence the delivery vehicle preference of consumers. More specifically, with a focus on consumers that belong to Generation Z, an experiment is conducted to determine if getting information on tree degradation and air pollution influences delivery vehicle preferences. Additionally, the research investigates if a delivery fee being charged or not, and the type of item being ordered also influences delivery vehicle preference. Results indicate that knowledge of the environment does affect vehicle choice. Further, findings showed that the type of product had a significant effect on vehicle preference; and that the effect of delivery fee was marginally significant. These findings bear significant implications for retailers, marketers, and supply chain managers as they design supply chains and delivery systems with sustainability being a considered factor.

Keywords

Environmental sustainability, last mile, transportation, delivery

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