When Do Online Consumers Shop in an Offline Store: The Moderating Effects of Product Characteristics

This study serves as an initial attempt to demonstrate empirically how online consumers react to the offline channel extensions (i.e., opening physical stores) of e-tailers. Specifically, we examine how the attributes of offline channels influence consumer intentions to switch to offline channels and how they also lead to incremental demands on online channels. We investigate how these effects vary across highly complex utilitarian and hedonic products. The results of the study indicate that although store openings encourage online consumers to shop there when purchasing highly complex utilitarian products, the addition of offline stores results counterintuitively in incremental patronage of the online channels when consumers shop for highly complex hedonic products. This study validates the guiding role of product characteristics in designing offline channels for e-tailers and suggests that incorporating product type and complexity into the design is likely to contribute to the development of stores tailored to specific consumer segments.     

Factors affecting Internet shopping behaviour in Singapore: gender and educational issues

Despite the increasing number of online users and products that are being offered on the Web, there is relatively little work that specifically examines the role of gender and educational level on the attitudes of Internet users in the Singapore context. Our findings reveal that there is a general consensus amongst Singaporeans that the Internet is a convenient medium for information search or making purchases. The better‐educated respondents seem to be less concerned with security issues. They also perceive that Internet shopping provides better prices and more cost savings. Females indicate a strong dislike for not being able to savour a physically fulfilling shopping experience online.     

Shopping plans,buying motivations,and return policies: impacts on product returns and purchase likelihoods

Product return behavior and factors that contribute to product returns are an under-researched area, despite significant importance to manufacturers and retailers. The current research attempts to fill the gap by focusing on two factors that shape consumer purchase behavior: (1) whether purchases are planned or unplanned, and (2) whether hedonic or utilitarian motivations drive purchases. The findings show that purchase plans and buying motivations have distinctive and interactive impacts on pre-purchase concerns, self-estimated likelihood of returning purchases, and purchase intentions with or without return policies. When hedonic motivation drives purchases, unplanned (vs. planned) purchases lead to higher return concerns, higher return likelihood, and lower buying intentions. When utilitarian motivation drives purchases, planned and unplanned purchases have comparable return concerns, return likelihood, and buying intentions. This interaction effect on buying intentions dissipates when a lenient return policy is offered.     

Internet consumer value of university students: E-mail-vs.-Web users

What values are underlying the use of Internet? An empirical study (N=358) shows five value factors: social, utilitarian, hedonic, learning and purchasing on the Internet. World Wide Web users score significantly higher on social and learning value, while E-mail users tend to value more a communication experience rather than a learning experience. Theoretical and practical implications are proposed.     

Beyond buying: Motivations behind consumers' online shopping cart use

The authors investigate consumers' motivations for placing items in an online shopping cart with or without buying, termed virtual cart use. While retailers offer virtual carts as a functional holding space for intended online purchases, this study, based on a national online sample, reveals other powerful utilitarian and hedonic motivations that explain the frequency of consumers' online cart use. Beyond current purchase intentions, the investigated reasons for why consumers place items in their carts include: securing online price promotions, obtaining more information on certain products, organizing shopping items, and entertainment. Based on empirical findings, the authors offer managerial suggestions for enhancing online shopping-to-buying conversion rates.     

Work and Fun on the Internet: The Effects of Utilitarianism and Hedonism Online

Consumers may act on the spur of the moment, driven by fun and curiosity, or be goal-oriented, task-focused utilitarians. This study investigates the effects of consumers’ hedonic and utilitarian orientation online on price consciousness, frequency of purchase, purchased amount, intention to re-patronize a Web site and expertise with the Internet. It specifically considers purchasing, not mere browsing, basing on data collected on customers of one of the largest Italian online retailers for electronics. The data show significant differences between hedonic and utilitarian orientation online with regard to past purchase frequency, the amount purchased and the intention to re-patronize the Web site in the future. The findings suggest that utilitarianism is strongly present online, and is valuable, thus utilitarian consumers should not be neglected, but hedonism is even more profitable, impacting on the number of items purchased and the intention to come back to the Web site. No differences are found in the level of price consciousness or in the degree of expertise with the Internet.     

What to Get and What to Give Up: How Different Decision Tasks and Product Types Affect the Persuasiveness of Promotion‐ versus Prevention‐Focused Messages

Prior research has distinguished between ad message frames that are promotion‐focused (i.e., eager‐sounding and achievement‐oriented) and those that are prevention‐focused (i.e., vigilance‐hued and safety‐themed). In three studies, the authors investigate the relative persuasiveness of promotion‐ versus prevention‐focused messages in the context of different decision tasks (i.e., acquisition vs. forfeiture) and different types of featured products/attributes (i.e., hedonic vs. utilitarian). Studies 1 and 2 focus on message structures conducive to imagery‐based processing. The results show that promotion‐focused messages are relatively more persuasive than prevention‐focused messages in acquisition tasks than in forfeiture tasks in the case of hedonic products (and products with salient hedonic attributes). Relative persuasiveness of the two message frames is not affected by decision task in the case of utilitarian products (or products with salient utilitarian attributes). Study 3 uses message structures suited for analytical processing. In this study, interestingly, the relative persuasiveness of prevention‐focused (vs. promotion‐focused) messages is greater in forfeiture tasks than in acquisition tasks in the case of utilitarian products. Relative persuasiveness of the two message frames is not affected by decision task in the case of hedonic products. Theoretical and managerial implications of the findings are discussed.     

Person–place congruency in the Internet Banking context

This study proposes and empirically validates a model that incorporates the interaction effects of consumer's shopping orientation (utilitarian/recreational) and attitudes towards the online store atmospheric qualities (information related cues, navigation cues, aesthetic cues) on online shopping behavior. The use of an underutilized technique for detecting interaction effects unveils the superiority of interaction effects over direct effects in explaining online shopping behavior. Results reveal significant interaction effects during the information search stage but not during the purchase stage. Furthermore, the interaction effects were significant only for utilitarian shoppers but not for the recreational ones. The results signify the distinctive nature of online shopping compared to the offline one, and the need for retailers to distinguish online and offline store atmosphere management.     

Increase hedonic products purchase intention through livestreaming: The mediating effects of mental imagery quality and customer trust

Although online retailing is applying livestreaming to promote both hedonic and utilitarian products, the differential effectiveness of utilizing this tool across the two types of products is still unclear. With an online experiment, the study found that livestreaming (vs. traditional e-commerce) is more effective in boosting hedonic products while making no difference in increasing purchase intentions of utilitarian products. By running a moderated serial mediation analysis, the research also demonstrated the underlying mechanism that livestreaming could significantly enhance mental imagery quality and customer trust in hedonic rather than utilitarian products. Therefore, our research has discovered an important boundary condition for the livestreaming effect and also the mechanism for the success of utilizing livestreaming to boost hedonic products. Considering the indiscriminate use of livestreaming regardless of product types and the huge amounts of resources required to sustain livestreaming, the study not only provides a theoretical glimpse of where livestreaming is more effective and why, but also practical insights as to how to apply livestreaming to different types of products and how to leverage mental imagery and customer trust to achieve business growth in an online retailing context.     

Post-disaster consumption: analysis from the 2011 Christchurch earthquake

This unique study provides information to logistics managers, retailers and governments about how consumer behaviour is modified following a large-scale disaster in a developed nation. Scanner data of purchases made in Christchurch supermarkets before and after the 2011 earthquake was used to identify immediate and short-term changes in consumer behaviour. In the immediate aftermath, consumers purchase increased levels of utilitarian products necessary for survival (e.g. water and non-perishable foods), but there is no evidence of increased consumption of hedonic or potentially harmful products. However, higher consumption of hedonic and harmful products does occur in the weeks after the disaster.     

Now or later: Delay's effects on post-consumption emotions and consumer loyalty

This study identifies differences in immediate and delayed post-consumption emotional assessments, triggering a dynamic shift in word-of-mouth evaluation and repurchase intention. Experiment 1 compares participants' responses to cellphone purchases in immediate and half-hour delay conditions. Experiment 2 generalizes the research scope by examining biscuit consumption and imposing an additional 24-hour delay. Results indicate that (1) products with higher hedonic value elicit excitement and cheerfulness, which intensify over time and increase consumer loyalty; (2) products with higher utilitarian value induce feelings of confidence and security, which gradually fade in intensity and diminish consumer loyalty over time; (3) products with lower hedonic value lead to dissatisfaction, which dissipates over time, and low-level consumer loyalty rises; and (4) products with lower utilitarian value generate feelings of anger, which grow over time and erode consumer loyalty.     

It is all about our impulsiveness – How consumer impulsiveness modulates neural evaluation of hedonic and utilitarian banners

The increasing number of active Internet users has encouraged companies to compete to design the most efficient online ads for their target audience. While some companies build their ads based on the functional and instrumental benefits of their advertised products (i.e., utilitarian banners), others emphasize the experiential, personal, and emotional advantages of purchasing their product (i.e., hedonic banners). This is the first study to use neuroimaging to address the debate in the literature regarding the processing and effectiveness of these types of messages. By means of functional Magnetic Resonance Imaging (fMRI), we explored the neural mechanisms by which an individual consumer trait, namely consumer impulsiveness, influences the evaluation of hedonic and utilitarian banners. The neural results revealed that more impulsive consumers exhibit a higher level of activation in brain regions linked to reward, trust, emotion, as well as a reduction of activity in self-control brain networks, when viewing hedonic banners. Consumers reporting lower levels of impulsiveness (i.e., prudent users), in turn, exhibited stronger activation in brain regions associated with self-control and cognition when evaluating utilitarian banners. Consequently, on the basis of an objective and neuropsychological approach, these results can be used to inform companies about the type of online advertising they should use based on the characteristics of their target audience.     

The Impact of Mobile App Adoption on Cross-buying: The Moderating Roles of Product Category Characteristics and Adoption Timing

With more and more companies introducing mobile apps and consumers using them during the purchase journey, it is increasingly important to understand the consequences of app adoption on behavioral outcomes. This paper investigates the impact of app adoption on the number of additional products purchased by customers (i.e., cross-buying) and how this effect varies across different product categories and different customers. We focus on two key product category characteristics (utilitarian vs. hedonic nature and perceived risk) and on adopters who vary in their adoption timings (early vs. late adopters). Using data from an online retailer and a combination of propensity score weighting with difference-in-differences and Heckman correction estimation techniques, the results show that app adoption has a positive effect on cross-buying overall, but the effect varies greatly across products and consumers. App adoption promotes additional product purchases for hedonic products but leads to less cross-buying for utilitarian products. In addition, early adopters purchase a higher number of additional product categories than late adopters, with this difference decreasing over time and for new consumers compared to existing customers. These results offer novel insights into the behavioral consequences of app adoption and provide managers with useful recommendations for improving the effectiveness of their mobile app investments.     

Shopping value in online auctions: Their antecedents and outcomes

Online auctions present unique characteristics in the consumer decision-making process that raise new issues related to consumer shopping behaviors in auction-based purchases. The present research examined the relationship between consumer characteristics (i.e., compulsive buying behavior, variety-seeking tendency, and price sensitivity) and shopping value (i.e., utilitarian and hedonic) in online auctions and found that both compulsive buying behavior and variety-seeking tendency are critical factors of shopping value in the online auction environment. There were no positive relationships between price sensitivity and shopping value. The results of this study also revealed that consumers’ shopping value positively influenced their preference, which, in turn, formed behavioral intentions in online auctions. While utilitarian value was found to be a significant predictor of behavioral intentions, hedonic value was not. However, hedonic value influenced intentions indirectly through preference.     

Factors affecting luxury consumers’ webrooming intention: A moderated-mediation approach

The aim of this study to investigate factors affecting luxury consumers’ webrooming intention using a moderated mediation framework. The study also investigates the mediating effects of perceived hedonic value and perceived utilitarian value and how these mediating effects are moderated by online risk perceptions. Data were collected using offline survey from 374 luxury consumers in India, using systematic sampling. The results indicated that perceived usefulness of online search, need for touch and socialization have significant impact on webrooming intention. Perceived hedonic value and perceived utilitarian value mediate the effect of variables on webrooming intention and mediation effect of perceived utilitarian value varied between high and low levels of online risk perceptions. Findings of this study will help luxury retailers in managing consumer channel switching behaviour. The study enriches luxury marketing literature by examining emerging webrooming, channel switching phenomenon.     

Probability and Mode of Acquisition Effects on Choices Between Hedonic and Utilitarian Options

We examine the effects of probability and mode of acquisition on choices between hedonic and utilitarian alternatives. The results suggest that the lower the probability of receiving the selected item, the more likely individuals will be to choose the more hedonic alternative in a choice set. Mode of acquisition (i.e., whether subjects are choosing in a windfall or a standard purchase situation) is also found to affect preferences, even when probability of acquisition is held constant. Hedonic options appear to be more popular as prizes than as purchases, whereas utilitarian options appear to be more popular as purchases than as prizes.     

Online display advertising for CPG brands: (When) does it work?

This study examines how online display ads, alone or in combination with more conventional media (television and print), can help drive sales in the consumer packaged goods (CPG) sector. It also assesses how the combined sales effect of online and offline ads depends on the volatility of their expenditures over time. We explore these relations for 154 brands across 68 Dutch CPG product categories. We find that, even though display ads are not effective for the “average” CPG brand, they do have a significant impact for a sizable, and considerably larger than expected by chance, subset of brands. Importantly, this impact depends on the type of product. While display ads are found to be ineffective for low-involvement utilitarian products, they can significantly enhance sales for other CPG product types. Moreover, the effect depends on whether they are used in combination with other media: while display ads are best used as a stand-alone medium for high-involvement utilitarian products, it is better to combine them with traditional media for hedonic products. Finally, the long-term effectiveness of display messages increases significantly when they are spread more evenly in time.     

Beyond presence: Creating attractive online retailing stores through the cool AR technology

Augmented reality (AR) is increasingly coming into the spotlight for its potential to improve the consumer experience through the creation of presence. This research aims to explore the theoretical mechanisms through which AR-based product presentation influences online store attractiveness and whether the effects differ in the purchasing contexts of hedonic and utilitarian product types. From the perspective of consumers' bidimensional experience, we find that AR increases online store attractiveness by creating perceived coolness (intrinsic attribute) and spatial presence experience (extrinsic attribute), which would further have a positive impact on consumers' purchase intention. The mediating mechanisms are different in purchasing contexts of various product types: for hedonic products, perceived coolness and spatial presence are parallel mediating factors leading to the improvement of online store attractiveness; while for utilitarian products, only the mediation effect of spatial presence presents. Our findings enrich the literature on AR marketing by proposing an insightful mediating force (i.e., perceived coolness) to complement the effect of presence, and explore the different purchasing contexts. We also provide managerial guidance for e-retailers to differentiate AR interface design for diverse product types to apply AR technology effectively.     

Hedonic and utilitarian shopping goals: The online experience

Marketers offering Web-based shopping typically try to provide a convenient, safe, and pleasant online environment, appropriate to addressing shoppers' functional goals. They might also try to create an experience that encourages more escapist elements of “flow”, a sense of deep involvement that is intrinsically enjoyable, because they assume that this enhanced experience leads to more online buying. The present research suggests that utilitarian flow elements that facilitate shopping may indeed increase purchasing. However, hedonic elements of flow are found to be unrelated to online buying, although they are positively related to outcomes associated with pathological Internet use.     

Does Online Information Drive Offline Revenues?: Only for Specific Products and Consumer Segments!

While many offline retailers have developed informational websites that offer information on products and prices, the key question for such informational websites is whether they can increase revenues via web-to-store shopping. The current paper draws on the information search literature to specify and test hypotheses regarding the offline revenue impact of adding an informational website. Explicitly considering marketing efforts, a latent class model distinguishes consumer segments with different short-term revenue effects, while a Vector Autoregressive model on these segments reveals different long-term marketing response.We find that the offline revenue impact of the informational website critically depends on the product category and customer segment. The lower online search costs are especially beneficial for sensory products and for customers distant from the store. Moreover, offline revenues increase most for customers with high web visit frequency. We find that customers in some segments buy more and more expensive products, suggesting that online search and offline purchases are complements. In contrast, customers in a particular segment reduce their shopping trips, suggesting their online activities partially substitute for experiential shopping in the physical store. Hence, offline retailers should use specific online activities to target specific product categories and customer segments.