Effects of online communication practices on consumer perceptions of performance uncertainty for search and experience goods

The “intangible” nature of e-commerce may cause shoppers to be uncertain about whether products ordered online will fit their needs or perform up to expectations. Such uncertainty is a dimension of consumer risk, or feelings that result because the actual outcome of a purchase decision can only be known in the future. However, the ability of e-retailers to offer a plethora of product-related information can ameliorate this uncertainty. This research assesses the influence of three online retailer communication practices—evoking vividness through pictures, allowing consumers to control information presentation, and presenting information from third-party sources. We demonstrate that these practices materially affect consumer perceptions of product performance uncertainty. Importantly, we also find that the influence of the practices differs by the search or experience orientation of the product, sometimes in counterintuitive ways. These results can serve to help enhance the effectiveness of e-retailers’ communications and, in the case of multichannel retailers, help determine which products are best suited for different channels.     

Short-term or long-term cooperation between retailer and MCN? New launched products sales strategies in live streaming e-commerce

Nowadays, live streaming e-commerce has become popular all over the world. In this paper, we study the pricing strategy of new products when they are launched in live streaming considering the consumer uncertainty and network externalities. We characterize the impact of live streaming into two dimensions, emotional support and information support, and investigate how those two dimensions impact the choice of cooperation types and the revenue distribution between the retailer and MCN (Multi-Channel Network). Using a two-stage vertical model, we find that, with the low consumer uncertainty, the MCN induces the retailer to choose the cooperation type depending on the emotional support level, but with the high consumer uncertainty, it depends on the information support level. For new-product pricing strategy, whether to adopt the penetration pricing strategy or the skimming pricing strategy depends on the impact of live streaming, the consumer uncertainty and network externalities. Interestingly, the commission price does not increase with the consumer uncertainty. An important implication for the retailer is that, reducing consumer uncertainty may not be beneficial to the total profit.     

Research needs for assessing online value creation in complex consumer purchase process behavior

Consumers face considerable frustration when purchasing structurally and/or semantically complex high-involvement products online. Reliance on computer-mediated communications for their information needs may result in functional and emotional frustration from information overload and lack of personal trust. This paper proposes a responsive real-time information system as a proxy for a perceptive sales representative who assesses customer needs based on information exchanges and then offers appropriate responses. By tracking and analyzing a consumer's online activity, vendors can offer information relevant to the consumer's real-time needs, facilitating their purchase process. In essence, this is a real-time value co-creation process based on the consumer offering cues to vendors through their key strokes and mouse click activity. This allows for differentiated information offerings for inexperienced and more experienced consumers, creating value by dynamic information serving. Where appropriate value is created, consumers will experience less frustration and continue online, rather than possibly moving offline or to alternative vendors. In examining the bases of consumer information needs in complex purchases, this paper identifies the data required to enable a responsive dialog between vendors and consumers.     

Market similarity and market selection: Implications for international marketing strategy

International market selection patterns for a sample of 954 new products suggest that firms exhibit a significant preference for markets similar to the home market. Preferences for similar markets decline as firms gain experience in a variety of markets, however. This pattern suggests the importance of uncertainty and information in global market selection and marketing mix management. Alternative means of gathering information about foreign markets permit and support very different approaches to global marketing activity. More fundamentally, a global perspective on the relationship between market conditions, marketing policies and programs, and consumer response can be developed systematically to improve global marketing performance.     

The impact of COVID-19 on consumer evaluation of authentic advertising messages

This study investigates the relationship between the COVID-19 threat and consumer evaluation of a product with authenticity appeals in advertisements. We propose that threatening situations like COVID-19 motivate consumers to lower their uncertainty and increase their preference for products with authentic advertising messages. Because individuals react differently to threatening environments according to their early-life experiences, commonly reflected in childhood socioeconomic status, we examined whether childhood socioeconomic status moderates the relationship between threat and consumer evaluation of authenticity in advertisements. First, secondary data from Google Trends provided empirical support for our predictions. In additional experimental studies, participants evaluated different target products in four studies that either manipulated (Studies 2 and 3) or measured (Studies 4 and 5) COVID-19 threat. Our results provide converging evidence that consumers positively evaluate products with authentic advertising messages under the COVID-19 threat. Consumers' motivation to lower their uncertainty underlies the effect of COVID-19 threat on their evaluation of authentic messages (Study 3). This attempt to reduce uncertainty is more likely to occur for consumers with relatively higher childhood socioeconomic status (Studies 4 and 5). These findings suggest that using authenticity appeals during a pandemic could effectively reduce consumers' perceived uncertainty and generate positive consumer evaluations.     

Learning About Computers: An Analysis of Information Search and Technology Choice

We estimate a dynamic model of how consumers learn about and choose between different brands of personal computers (PCs). To estimate the model, we use a panel data set that contains the search and purchase behavior of a set of consumers who were in the market for a PC. The data includes the information sources visited each period, search durations, as well as measures of price expectations and stated attitudes toward the alternatives during the search process. Our model extends recent work on estimation of Bayesian learning models of consumer choice behavior in environments characterized by uncertainty by estimating a model of active learning—i.e., a model in which consumers make optimal sequential decisions about how much information to gather prior to making a purchase. Also, following the suggestion of Manski (2003), we use our data on price expectations to model consumers’ price expectation process, and, following the suggestion of McFadden (1989a), we incorporate the stated brand quality information into our likelihood function, rather than modeling only revealed preference data.Our analysis sheds light on how consumer forward-looking price expectations and the process of learning about quality influence the consumer choice process. A key finding is that estimates of dynamic price elasticities of demand exceed estimates that ignore the expectations effect by roughly 50%. This occurs because our estimated expectations formation process implies that consumers expect mean reversion in price changes. This enhances the impact of a temporary price cut. Finally, while our work focuses specifically on the PC market, the modeling approach we develop here may be useful for studying a wide range of high-tech, high-involvement durable goods markets where active learning is important.JEL Classification: C15, C33, C35, C42, C51, C52, D83, D84     

Interpreting multidimensional data with cognitive differentiation analysis

The interpretation of multidimensional data in consumer research has traditionally required property fitting to determine the structure underlying the data. As an alternative, Cognitive Differentiation Analysis (CDA) regresses a matrix of pairwise product judgments on vectors of product-attribute ratings. The estimated multiple regression equation indicates the degree of differentiation in the pairwise data that is accounted for by each attribute. In this article CDA is applied to the analysis of simulated multidimensional data and to actual data from a benefit segmentation study. The implications of improved interpretability of multidimensional data for understanding the competitive environment are discussed. © 1995 John Wiley & Sons, Inc.     

Visualization service investment strategies for a self-operated fresh agricultural product e-tailer

Motivated by the fact that numerous fresh agricultural product e-tailers utilize the visualization technology to improve service quality, this paper examines visualization service investment strategies for a fresh agricultural product e-tailer. A supply chain comprised of one manufacturer and one self-operated e-tailer is constructed. We first investigate two service investment strategies in the game theory model: the manufacturer investment and the e-tailer investment. Our analysis reveals that there are two investment cases in the supply chain: one member intends to the service investment (a “win-win” situation) and neither is willing to offer the service (a “lose-lose” dilemma). Then we extend the theory model. The impacts of consumer preference heterogeneity, demand uncertainty and consumer preference for the product quality difference on the investment strategies are explored by the method of multi-agent modelling. We find that: (i) when consumer preference heterogeneity is small, the e-tailer should invest in the service; (ii) if consumer preference or demand uncertainty is moderate, it is difficult to reach an agreement between two players. Further, the government subsidy factor is considered. The issue of how the government subsidy affects service investment strategies is discussed. In fact, it is not necessary to provide a subsidy all the time. Only when the free-riding behavior happens, the government should grant a moderate amount of subsidy to coordinate the supply chain members. An excessive subsidy hurts two sides’ benefits instead.     

Dazing Diversity: Investigating the Determinants and Consequences of Decision Paralysis

This article makes new contributions to the assessment of negative effects on consumer choice behavior due to high product variety by (1) developing a holistic framework to identify the determinants and, for the first time, consequences of decision paralysis; (2) introducing a novel construct, namely, tendencies toward paralysis, that refers to the extent of decision makers’ preference (a) to maintain the status quo, (b) to omit, and/or (c) to delay choice, as well as providing an appropriate measurement model incorporating these three dimensions of decision paralysis that previously have been analyzed only separately; and (3) analyzing potential moderating effects of decision makers’ predisposition toward maximizing on the proposed model. The developed structural equation model as well as the conceptualization and operationalization of the novel construct are verified using data from the German cellular phone market. The model constructs of preference uncertainty and anticipated regret are evidenced to be the fundamental drivers of the formation of tendencies toward paralysis. In this context, the characteristics of variety under consideration—number, alignability, and complexity of alternatives—turn out to be appropriate parameters in avoiding decision paralysis. Moreover, a significant negative relationship between tendencies toward paralysis and subsequent customer satisfaction points out the importance of these findings for future research and business practice.     

The effect of COVID-19 on consumer shopping behaviour: Generational cohort perspective

The purpose of this research is to contribute to an understanding of the trends and impacts of the COVID-19 pandemic on consumer buying behaviour. The results document changes in consumer behaviour patterns that came to dominate at the start of the second wave of the COVID-19 pandemic in the context of the Czech Republic. The questionnaire survey using an online panel in a selected country was conducted to identify how consumers from the Baby Boomers, X and Y generations changed their shopping behaviour and which needs they gave preference to during the pandemic crisis in relation to their fears. Using a multiple regression analysis, we demonstrated that fear appeal (fears for health and economic fears) are associated with the changes in customer behaviour and influence traditional and online shopping related to COVID-19. The findings demonstrate significant differences as well as similarities in consumer behaviour between generations. Through empirical investigation, this research supports and expands generation cohort theory in relation to changes in consumer behaviour during the Covid-19 pandemic from a Central European perspective, and provides useful information for researchers and practitioners, particularly for retailers and marketers, to implement appropriate strategies.     

Experimental Strategies for Preference Information Acquisition: A Lattice Path Treatment

This paper investigates strategies for the acquisition of consumer preference information by a market researcher. Such preference information is obtained by the market researcher through an experimental process that entails polling consumers about their preference profiles with a view to completely specifying the preference order. In this paper, we limit the focus to one or two consumers.In this environment, the experiments are pairwise comparisons between resource bundles about which there is no a-priori preference information. Each such experiment can have three possible signals: one bundle is more preferred, indifferent, or less preferred over another. Choice of an experiment in the experimental sequence is important because different choices result in different average amounts of information.For the analysis the paper establishes a link between preference theory and lattice path counting. Combinatorial arguments that allow the market researcher to calculate quantities of information at the start of the information acquisition process are presented. A recursion for finding the impact of choosing different experiments on the average values of information gain is constructed. The paper studies how the experiments chosen subsequently can affect the elimination of other experiments from the experimental set and thus have an effect on the efficiency of information acquisition. The measures derived could be used by the market researcher as a benchmark with which to compare information gathering strategies.     

Examining the Use of Nutrition Information on Restaurant Menus

Over the past decade, the world has been facing an obesity epidemic. In the popular press and certain governmental and public policy circles, this seems to be attributed to the marketing efforts of fast-food and chain restaurants. As a solution to this problem, many have proposed increasing the amount of nutrition information available to the public by adding nutrition information to restaurant menus and menu boards. However, some debate has ensued about the use and function of this nutrition information. Specifically, this research attempts to uncover whether consumer actually use the nutrition information to aid their decision-making process. In two experimental studies, results are presented to enlighten the discussion of consumers’ reactions to nutrition information when it is present on restaurant menus. Contrary to what public policy makers have stated, this research shows that only small groups of consumers use nutrition information on a restaurant menu. The results in both studies indicate that when consumers eat out at restaurants, their decisions are based on taste and preference rather than nutrition information if it is presented on a menu. These results may have implications for the provision of nutrition information on restaurant menus and consumer decision-making.     

The role of brand schemas,information transparency,and source of message on apparel brands' social responsibility communication

In today's complex business environment, apparel brands are communicating about their socially responsible (SR) practices through marketing messages to create a niche for themselves and show their SR efforts. However, SR aspects of products are difficult to verify by consumers. To help brands effectively communicate their SR efforts, this study assessed how consumers process an apparel brand's SR messages based on their prior experiences with that brand (brand schemas). Information transparency on messages and source of messages were tested as external cues to influence consumers' brand schemas and SR message evaluations in a mixed method repeated measures online experiment using a national US consumer sample. Results from regression-based conditional process analyses indicated that increased congruity of consumers' schemas to the fact that brands are SR led to more favorable attitude toward brands' SR messages. Also, presence of high information transparency on SR messages influenced consumers' schemas positively, and in turn, they evaluated messages more favorably. However, consumers were not influenced by whether messages were made by brands or third-party organizations. The study results show the importance of brand schemas and information transparency on apparel brand communications, helping both apparel brands and educators create effective SR-related marketing strategies.     

The Emerging Position of the Internet as an Advertising Medium

This paper examines the emerging position of the Internet as an advertising medium. The nature and time path of its evolution is subject to considerable uncertainty arising from issues relating to expansion of the Internet's penetration of households; consumer demand for information; development of pricing policies and measurement capabilities; and its attractiveness to advertisers in different product/service categories. Our analyses of these issues suggest that its long-term impact on intermedia rivalry will be broad and substantial. The Internet is emerging as an adaptive, hybrid medium with respect to the factors hypothesized to affect intermedia substitutability, namely, audience addressability, audience control, and contractual flexibility. Possessing such capabilities, it looms as a potential substitute or complement for all of the major categories of existing media and appears capable of serving a wide range of communications objectives for a broad array of advertisers.     

Design for synergy with brand or price information

Customers' preference for the hedonic benefits (e.g., aesthetics) and utilitarian benefits (e.g., functionality) offered by a product varies depending on the context—buying versus selling, and choice versus willingness‐to‐pay. However, a customer's preference formation could involve brand information or price information in addition to the benefits offered by the product. It is unclear how the consideration of brand or price information influences customers' relative preference for hedonic and utilitarian product benefits. Does this information alter preference in favor of a product that offers greater utilitarian or greater hedonic benefits, and why? The results show that (1) hedonic (utilitarian) attributes have a significantly stronger influence on consumer preference when accompanied by a strong (weak) versus a weak (strong) brand; and (2) in the presence of price information, hedonic attributes have a dominant influence on consumer preference compared to in the absence of price information. The article concludes with a discussion of the theoretical contributions and managerial implications of design for synergy with brand or price information. © 2010 Wiley Periodicals, Inc.     

Product classifications,consumer characteristics,and patronage preference for online auction

An important unanswered question in the area of Internet auctions is what dynamics influences consumer preferences for shopping on these online auctions. Two key aspects of studying what sells on the Internet auctions are (a) the characteristics of products to be purchased and (b) consumer characteristics. This research focuses on the relationship between product purchase preference, prior experience, and socioeconomic characteristics for the online auction participants. It uses product classification theory rooted in information economics and marketing. The study results are based on a US national sample of online auction participants. The findings suggest that product class affects online auction patronage, yet socioeconomic characteristics may not be as influential as once perceived. The online merchants can benefit from the inquiry to improve auctions for search, experience, and credence goods. The five key contributions of the findings add value to the theory and practice of consumer behavior.     

Sanitary and phytosanitary measures in international trade: policy considerations vs. economic reasoning

Sanitary and phytosanitary (SPS) measures are one form of non‐tariff international trade barrier with the objective of requiring consumer and intermediate goods to be safe and to provide information to protect consumers from deceptive practices. However, such barriers could severely restrict trade. The central strategy of the World Trade Organization's (WTO) SPS Agreement is to use science to distinguish between those SPS measures consistent with the Agreement and those in violation of the Agreement. SPS measures belong to what is known as trans‐science questions or questions which can be asked of science and yet which cannot be answered by science. Because of the presence of scientific uncertainty, science policies adopted by members should be identified by the WTO. WTO panels should not, however, establish scientific policies. Prohibitive measures would seem rather incompatible with the role the WTO assumed trying to promote free trade. Rather, facilitating the distribution of available information regarding SPS and food safety risk, or a lack of it, to consumers in importing countries would help them to make better informed decisions according to their own preferences and risk aversion.     

How ‘social’ are social media? A cross-cultural comparison of online and offline purchase decision influences

Traditional word of mouth (WOM) involves personal communications among family, friends, and others. Today, social media sites like Facebook offer the possibility of electronic word of mouth (eWOM), a mediated form of WOM. Little is known about the best way for marketers to use social media. Even less is known about international differences in consumer usage of social media and how eWOM influences consumer decision-making. This study helps address that research gap and uses cultural dimensions to compare the use of social media and other information sources for consumer decision-making across 50 countries. The results indicate that the use of information sources that influence online purchase decisions strongly varies by culture. For example, relationship-oriented collectivists rely to a greater extent than individualists on social media, which are an alternative for interpersonal WOM communication. Interestingly culture affects the influence of social media on purchases differently than the influence of traditional WOM through family or friends. Furthermore, there are major differences in online complaint behavior by country, due to cultural variations.     

消费者品牌偏好的形成及行为经济学视野的分析

本文认为,企业品牌产品在生产、销售、服务等价值链活动中的行为及信息传播构成了消费者从外部环境中认知品牌最基础的信息。成功的品牌信息会引起一种情感反应,可以把消费者与产品的距离拉近,品牌如能成为消费者自我实现或表现自我的媒介,消费者就会产生接受、喜欢的行为倾向。文章提出,消费者对品牌功能的预期是形成品牌情感的先决条件,偏好反转现象与消费行为倾向密切关联。     

8th International Conference on Corpor@te and M@rketing Communications (CMC)

This article addresses self-gift giving both from a consumer perspective and from the point of view of brands' promotional messages. Self-gifts may be regarded as personal acquisitions which are distinguished from other purchases by a particular motivation and context – quite literally, gifts to oneself. Our knowledge of this phenomenon from the consumer side remains limited, despite evidence of its importance in understanding consumer decisions. Furthermore, there is no empirical research addressing the extent to which organisations make use of the concept of self-gifts in their marketing activities. This paper addresses these gaps using a two-stage methodology. First, it enhances the understanding of self-gift consumer behaviour (SGCB) by 14 in-depth interviews with consumers. Then, drawing on the self-gift themes which emerged from the interviews, it presents the results of a content analysis of marketing communications for two selected product categories. The combined methodology offers new and rich insights into the theoretical understanding of self-gift consumer behaviour and provides recommendations for practitioners differentiating their marketing communications.