Consumer Behavior Choice in the Era of Shared Mobility: The Role of Proximity, Competition, and Quality

Abstract

Shared mobility services, which allow users to make point-to-point trips on an as-needed basis, have drastically impacted people’s travel behavior in the last few years. In this study, we propose a decision choice model to examine the factors that influence the restaurant choice of individuals who use shared mobility services. Our model incorporates key elements from the spatial interaction model and the theory of the individual decision making from economics. We analyze individuals’ travel behavior using trip-level data, along with point of interest data, restaurant reviews and average prices, and travel route characteristics. We find that the effect of proximity of a restaurant depends on the total distance of the trip. For shorter trips, an individual is less likely to choose a restaurant that is further away. However, if an individual decides to travel a long distance to a restaurant, she is more likely to choose a restaurant that is further. Additionally, with increasing travel distance (or competition) there is a decreased preference for a restaurant with a higher price. The quality (online reviews) of a restaurant does not seem to have a significant impact on the choice of the restaurant. Implications of the study are discussed.