Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility

Developing trust in a company is a significant part of building the company-consumer relationship. Previous studies have sought to identify the positive consequences of trust such as loyalty and repurchase, but the question of what builds trust remains largely unanswered. To answer the question, we developed a model that depicts the relationships among transparency, social responsibility, trust, attitude, word-of-mouth (WOM) intention, and purchase intention. An online survey was conducted with a US nationwide sample of 303 consumers, and the data were analyzed using the structural equation modeling method. The results indicated that consumers’ perceptions of a corporation’s efforts to be transparent in the production and labor conditions and to be socially responsible by giving back to the local community directly affected these consumers’ trust and attitudes toward the corporation, and indirectly affected their intentions to purchase from and spread positive WOM about the corporation. Theoretical and practical implications are discussed.     

The combined influence of time pressure and time orientation on consumers’ multichannel choice: evidence from China

This article deals with the influence of time pressure and time orientation on consumers’ multichannel shopping behaviour. Previous studies have documented the role of time pressure on customers’ channel choice in developed countries, without examining the moderating effects of time orientation on the relationship between perceived time pressure and consumers’ attitudes towards online/offline channels. To fill this gap, this article aims to investigate the combined influences of time pressure and time orientation on consumers’ attitude towards both online and offline shopping. The results show that time pressure helps consumers form more favourable attitudes towards online shopping than towards offline shopping. Further, the effect of time pressure on consumers’ channel attitudes depends on one's time orientations. The implications for marketing channel strategies and market segmentation in Asian emerging markets are discussed.     

Leveraging the co-evolution of offline and online video games: an empirical study

Considerable research has been carried out on online shopping and the implications of this purchasing format for consumers and retailers. Most of these studies have focused on consumer attitudes towards online shopping, and how these can be useful predictors of online shopping adoption. Notwithstanding these insights from adoption theory, existing research has yet to distil the most effective means of understanding consumers’ attitudes towards online video game purchases. Based on a qualitative study, our study contributes to literature on adoption theory by presenting some explanations involving online video games purchases by identifying salient perceptions of online and offline motivations and advances ideas on the facilitating role of incentives in making purchase decisions.     

Online and offline retailing: What we know and directions for future research

The fast-paced growth of e-commerce is rapidly changing consumers’ shopping habits and shaping the future of the retail industry. While online retailing has allowed companies to overcome geographic barriers to selling and helped them achieve operational efficiencies, offline retailers have struggled to compete with online retailers, and many retailers have chosen to operate both online and offline. This paper presents a review of the literature on the interaction between e-commerce and offline retailing, highlighting empirical findings and generalizable insights, and discussing their managerial implications. Our review includes studies published in more than 50 different academic journals spanning various disciplines from the inception of the internet to present. We organize our paper around three main research questions. First, what is the relationship between online and offline retail channels including competition and complementarity between online and offline sellers as well as online and offline channels of an omnichannel retailer? Under this question we also try to understand the impact of e-commerce on market structure and what factors impact the intensity of competition /complementarity. Second, what is the impact of e-commerce on consumer behavior? We specifically investigate how e-commerce has impacted consumer search, its implications for price dispersion, and user generated content. Third, how has e-commerce impacted retailers’ key managerial decisions? The key research questions under this heading include: (i) What is the impact of big data on retailing? (ii) What is the impact of digitization on retailer outcomes? (iii) What is the impact of e-commerce on sales concentration? (iv) What is the impact of e-commerce and platforms on pricing? And (v) How should retailers manage product returns across online and offline channels? Under each section, we also develop detailed recommendations for future research which we hope will inspire continued interest in this domain.     

Shopping for fun or shopping to buy: Is it different online and offline?

Consumers can shop both online and offline, either for fun or for needs. We investigate the consequences of shopping for fun or for need on word-of-mouth (WOM), intentional loyalty, and price consciousness directly comparing the offline and online settings. We find differences in the relationships among the considered variables, with the offline context being characterized by a simplified structure of causalities, greater maturity, and fewer but stronger ties among the considered constructs, compared with the online context. Furthermore, the content of WOM changes: consumers share experiential issues when they shop for fun, and efficiency issues when their shopping is goal-oriented     

Product Touch and Consumers’ Online and Offline Buying: The Role of Mental Representation

As offline retailers struggle to compete with online ones, the importance of a consumer’s ability to touch a product prior to purchase becomes important to study. Prior research has found inconsistent results on whether product touch facilitates consumers’ product-related decision making. Some studies report a positive effect, whereas others do not. The current research reconciles this inconsistency and draws retailing implications. Across three experiments, we show that the effect of product touch on consumers’ purchase intentions and willingness to pay for a product being evaluated is evident when consumers’ mental representation of the product is concrete, but not when abstract. We further show that perceived risk and perceived ownership simultaneously mediate this moderating effect of mental representation. Implications are drawn for both offline and online retailers.     

Word-of-mouth marketing influence on offline and online communications: Evidence from case study research

This case study reports results from three research studies conducted over 12 weeks as part of a product seeding campaign. Partnering with a word-of-mouth marketing (WOMM) agency for this research, studies 1 and 2 report agency-conducted surveys of campaign participants' online and offline word-of-mouth (WOM) behaviors. Study 3 deployed an innovative web-based methodology to map and visualize WOM communication patterns, to reveal how campaign-related conversations spread within and across offline friendship networks and the role played by tie strength in that process. We find that agency reports of WOMM campaign results overstate reach and understate frequency. Our results have implications for the measurement of reach and frequency of WOMM campaigns.     

Assessing customer passion,commitment, and word-of-mouth intentions in digital assistant usage: The moderating role of technology anxiety

Consumers develop a passion for the use of innovations, which is a critical determinant of their success. Research has largely examined drivers of initial acceptance of digital assistants (DAs) and has yet to fully understand the factors driving or deterring consumers’ passion towards DAs and the behavioural outcomes. Drawing on the stimulus-organism-response framework, this study examines a unique set of factors (usefulness, ease of use, privacy concern, and localisation) that act as stimuli to drive an organismic state of passion for DAs, and how this produces behavioural responses of word-of-mouth (WOM) intention and commitment to DA use. The study also examines how technology anxiety moderates passion’s impact on WOM intentions and commitment. The findings show that usefulness, ease of use, privacy concern, and localisation are significant explanatory variables of consumers’ passion towards DAs. Furthermore, passion towards DAs results in WOM intentions and commitment to its use. The findings further show that passion’s effect on DAs in explaining WOM intentions and commitment is weakened by technology anxiety. Lastly, passion is the mediating mechanism through which usefulness, ease of use, privacy concern, and localisation impact WOM intentions and commitment. The implications of these findings for theory and practice are highlighted.     

Consumer responses to offline and online low price signals: The role of cognitive elaboration

Low price signals (LPS), pricing tools where retailers promise to match or beat competitors' prices, have been increasingly popular in offline and online markets. We compare consumer evaluation of offline and online LPS as a function of how deeply they process the signals. Results of an experiment indicate that regardless of retail media consumers accept an LPS as an indicator of low price when they do not elaborate sufficiently on the signal. However, at high levels of elaboration, consumers challenge the assumptions underlying their acceptance of the signal at lower levels of elaboration whereby they become more skeptical of an online signal than an offline signal resulting in lower efficacy of the former. Implications of these findings for consumer vulnerability to false low price signaling are discussed along with other theoretical and managerial implications. Additionally, directions for future research are provided.     

Thematic Discrepancy Analysis: A Method to Gain Insights into Lurkers and Test for Non-Response Bias

Word of mouth (WOM), long recognized as a highly influential source of information, has taken on new importance with the proliferation of online WOM. Research in online environments has focused on individuals who actively participate in generating WOM. However, over 90% of those that read WOM are non-participants, commonly called “lurkers.” This paper develops and tests a thematic discrepancy analysis (TDA) approach that combines commonly available information on Views and Replies with content analysis to provide new insights into differences between WOM participants and lurkers. TDA provides managers with market-sensing information to identify hidden opportunities and threats, as well as to test for non-response bias. Given the lack of approaches to address non-response bias due to lurkers, TDA represents a significant contribution to research methodology. We demonstrate the efficacy of TDA by applying it to a large scale WOM dataset containing over 80,000 messages from a brand-specific online forum.     

International Advertising Strategies by NIC Multinationals: The Case of a Korean Firm

Managers of new brands seek to leverage positive WOM and establish a critical mass of consumers who interact with their brands on social network sites (SNSs). Effective selection of ‘seeds’, or influencers, on SNSs, who will recommend the product and leverage the power of their social networks to influence other consumers is key to organic growth. This research examines the role of an influencer’s activity on a social network website (network size, membership duration, share-of-posts), brand message source (marketergenerated versus member-generated), and recipient type (SNS member versus nonmember) on an influencer’s decision to recommend a new brand and the recipient’s decision to make a referral visit. Empirical analyses of clickstream data from SNSs at a commercial website show that marketer- and consumer-generated brand ads differ in their impact on recommending propensity for high share-of-posts and long-term influencers, and for member and non-member recipients, which has implications for referral management.     

Effects of social media on consumers’ purchase decisions: evidence from Taobao

Given the rapid growth of social media, it is important to understand the effects of social media on consumers’ purchase decisions in the e-commerce environment. However, although some e-commerce sites have started to link themselves to social media to enhance user interactions, previous studies of social media and service management have shed little light on the effects of social media on consumers’ purchase decisions. This study proposes a theoretical research model that includes social media factors, social impact transfer factors, and e-commerce outcome factors. We posit social interaction ties and social media commitment as key elements of social media. An online questionnaire was conducted to test the research model and hypotheses based on survey data collected from Taobao, the largest e-commerce site in China. The analysis results indicate that social interaction ties have significant positive effects on social impact transfer factors and trust in online vendor, whereas they do not directly influence visit intention. Social media commitment plays a crucial role in increasing social impact transfer factors and e-commerce outcomes. The findings reveal the different effects of normative and informational social influences on consumer purchase decisions. Further implications are discussed.     

Why is Price Dispersion Higher Online than Offline? The Impact of Retailer Type and Shopping Risk on Price Dispersion

When physically similar products, of similar quality, are offered by retailers both online and offline, we often observe that the dispersion in prices of these products online is greater than the price dispersion offline. This observation runs counter to early theories that suggested price dispersion online would be smaller than that offline due to the ease of search and information availability online. This paper investigates and provides an explanation for this puzzling phenomenon by examining the impact of two important drivers of price dispersion: retailer type and consumers’ shopping risk. Retailer type refers to whether a retailer is a pure offline, pure online, or dual channel retailer. Shopping risk is defined as the product of consumers’ perceived risk of shopping and the transaction uncertainty related to shopping at different types of retailers.A game-theoretic approach is adopted to model consumers’ price search and product purchase, as well as price competition within and across retailer types in online and offline markets. Equilibrium pricing strategies are derived for different retailer types competing for different consumer segments with different levels of perceived shopping risk. The impact of retailer type and shopping risk on online versus offline price dispersion are quantified, and conditions when price dispersion is greater online than offline are identified.Results indicate that price dispersion is greater online when the number of pure online retailers is sufficiently large and is increasing in the number of pure online retailers. In addition, a reduction in online shopping risk may actually increase online price dispersion. Results further suggest that even without any online sales, dual channel retailers should maintain their online presence for the purpose of information dissemination, which justifies the importance for pure offline retailer to incorporate webrooming strategies, where consumers can search for prices online but purchase offline.     

Conceptualising consumers’ word-of-mouth behaviour intention: evidence from a university education services in Malaysia

The aim of this study is to propose a theoretical model to examine consumer word-of-mouth (WOM) behavioural intention in Malaysian education services. The results from a survey of 247 respondents indicate that servicescape, service recovery, service quality and satisfaction significantly affect consumers’ intention to engage in WOM behaviour. The results support majority of the hypothesized relationships, suggesting that servicescape and service recovery function as antecedents, directly affecting consumer perceptions of education service quality. The analytical results also demonstrate that perceived service quality positively affects satisfaction, which subsequently induces consumers’ behavioural intentions. Consistent with previous empirical studies, our findings suggest that satisfaction is a super-ordinate construct with a positive relation to behavioural intention, and significantly mediates the effect of service quality on the intention to engage in WOM behaviour. The insignificant direct effect from service quality to WOM further suggests the role of satisfaction as a complete mediator in the university education service setting. Implications for future research are discussed and limitations noted.     

The Firm's Management of Social Interactions

Consumer choice is influenced in a direct and meaningful way by the actions taken by others. These “actions” range from face-to-face recommendations from a friend to the passive observation of what a stranger is wearing. We refer to the set of such contexts as “social interactions” (SI). We believe that at least some of the SI effects are partially within the firm's control and that this represents an exciting research opportunity. We present an agenda that identifies a list of unanswered questions of potential interest to both researchers and managers. In order to appreciate the firm's choices with respect to its management of SI, it is important to first evaluate where we are in terms of understanding the phenomena themselves. We highlight five questions in this regard: (1) What are the antecedents of word of mouth (WOM)? (2) How does the transmission of positive WOM differ from that of negative WOM? (3) How does online WOM differ from offline WOM? (4) What is the impact of WOM? (5) How can we measure WOM? Finally, we identify and discuss four principal, non-mutually exclusive, roles that the firm might play: (1) observer, (2) moderator, (3) mediator, and (4) participant.     

Reexamining emerging market animosity toward western developed countries: A social dilemma in physical retailing consumption under normative influence

Focusing on physical retailing as an apparent target for boycotts in the context of emerging market consumers' animosity toward Western developed countries, this research pioneers in its in-depth examination of a social dilemma whereby consumers on one hand wish to avoid purchasing Western products/services to meet social expectations, while on the other wish to continue purchasing Western products/services, because of perceived Western product/service superiority, at the risk of social disapproval. Differing from conventional animosity research that largely neglects interpersonal influence, this research synthesizes social influence theory and social exchange theory to compare consumers’ purchase decisions in visible (physical retailing) and less-visible (online shopping) consumption contexts that are subject to different strengths of normative influence, and proposes a cost-benefit analysis to explain how consumers make trade-offs between social expectations and self-interest. Two studies were conducted to test the hypotheses. Our study findings have important implications for future animosity research on consumer services that are subject to stronger normative pressure.     

Physically freeing: breaking taboos through online displays of the sexual self

ABSTRACT

This research specifically looks at the societal taboo of presenting an overtly sexualised self in a public forum. Specifically, we investigate the way in which technology is being used to mediate sexual experiences between individuals and larger online communities. The research takes an exploratory look at why some users engage in Technology-Mediated Sexual Encounters (TMSEs) and the impact that these online sexual encounters can have on one’s sense of self, perceptions of freedom and expression. Beyond fantasy seeking, novel experiences, and instancy of TMSEs, the importance of perceptions of power and dominance during a TMSE are discussed, as well as the emancipatory feelings associated with being free to break taboo. The impact of engaging in TMSEs and their use in understanding sexuality and expectations of physical sexual experiences is also discussed. The implications from this research include a better understanding of how technology is being used to express one’s self online in taboo contexts.     

Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research

The authors review 50 empirical retailing research papers that have appeared over the last 20 years to take stock of what we know, need to know better, and do not know yet about within-retailer cross-channel effects of omnichannel retail marketing strategies on (a) consumer responses over their purchase journeys, i.e., online and/or offline search, purchase intention, frequency, amount, returns, loyalty, and (b) the retail firm's aggregate outcomes (e.g., sales, costs, profits, product returns) by channel and overall. Specifically, the authors focus on five strategies: (1) the addition of online channel by an offline retailer; (2) the addition (or subtraction) of offline channels by an online retailer; (3) addition of mobile shopping channel (website and/or app) by offline and/or online retailer; (4) cross-channel integration strategies; and (5) retail marketing mix strategies. The author/s integrate findings from empirical research on these strategies into a number of ‘insights’ about ‘what we know’. Prominent among these are the following: Adding a transactional online channel to an offline channel improves the retailer's overall sales even though offline channel sales can be cannibalized to some degree. Adding an offline channel by an online retailer, however, boosts online channel sales as well as overall sales of the retailer. Similarly, adding a mobile shopping channel usually increases customer purchase frequency and amount and overall sales of the retailer in the long-term. Strategies for greater cross-channel integration generally have a positive effect on a retailer's overall performance while online advertising has positive effects on offline channel consideration and sales as well as overall sales of a multichannel retailer. Other insights or findings that need further study or open questions are also identified. The paper closes with managerial implications of the derived empirical insights, and suggestions for future research.     

Identity Bias in Negative Word of Mouth Following Irresponsible Corporate Behavior: A Research Model and Moderating Effects

Current research has documented how cases of irresponsible corporate behavior generate negative reactions from consumers and other stakeholders. Existing research, however, has not examined empirically whether the characteristics of the victims of corporate malfeasance contribute to shaping individual reactions. This study examines, through four experimental surveys, the role played by the national identity of the people affected on consumers’ intentions to spread negative word of mouth (WOM). It is shown that national identity influences individual reactions indirectly; mediated by perceived similarity and sympathy. Consumers perceive foreign victims as different from the self and this reduces the sympathy experienced towards them. Sympathy is an emotion that shapes consumer reactions and regulates WOM. The study identifies two moderating processes of this effect. Individuals who score high on collective narcissism are most likely to be strongly biased against foreign victims. In-group bias is also moderated by the perceived severity of the crisis. When a case is perceived as very serious, perceived similarity plays a less important role in generating sympathy because consumers focus on the perceived suffering of the victims. Hence, in-group bias is stronger in cases perceived as having minor consequences. The paper contributes to the literature on corporate social irresponsibility and offers implications for both scholars and managers.     

“Never eat in that restaurant,I did!”: Exploring why people engage in negative word‐of‐mouth communication

What do consumers want to achieve when they engage in negative word‐of‐mouth communication (N‐WOM)? Two studies explore this question and reveal that consumers pursue specific goals when engaging in N‐WOM and that these goals systematically differ between the specific negative emotions that are experienced. For example, the results reveal that consumers who experience anger engage in N‐WOM to vent feelings or to take revenge. However, disappointed consumers engage in N‐WOM to warn others, and consumers who experience regret communicate with others to strengthen social bonds or to warn them. This reveals the functionality of specific emotions to N‐WOM, and how goals for N‐WOM are associated with these emotions. This demonstrates that rather than being uniform, the content and implications of N‐WOM are contingent on the specific emotions that consumers experience. © 2007 Wiley Periodicals, Inc.