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.