A penny saved is a penny earned? Differences in male and female savings and consumption tradeoffs on online retail platforms

Online retailers in Asia are increasingly offering interest paying accounts to their users. Based on temporal discounting theory, however, customers might consider tradeoffs in opportunities to save money (offered yield by the online retailer × the account balance) versus withdrawing money from the account for online purchases. Based on a sample of 1.95 million transactions from 24,591 customers, when short-term savings opportunities (7-day annualized yield × account balance) are greater, customers withdraw less money for purchase. Relative to females, males tend to withdraw less money for purchase from their account when long-term savings opportunities (1-year annualized yield × account balance) are higher. The findings have implications for temporal discounting behavior in online retail saving opportunities versus purchase transactions, and implications for online retailers who may cannibalize online sales by offering higher yields to online customers.     

Examining the effect of flow experience on online purchase: A novel approach to the flow theory based on hedonic and utilitarian value

The literature indicate that when flow is approached as unidimensional, its effects on online purchase intention are always positively significant, however the results of the studies where the flow is approached as a multidimensional level, is far from indicating a general tendency. The inconsistent results appeared in the literature are regarded as a result of overlooking both the utilitarian and hedonic significance of research context and the hedonic and utilitarian characteristics of the flow's sub-dimensions. In this direction, the effects of flow on online purchase intention are examined upon consideration of those two factors. Research's data were gathered via e-mail survey from an online shopping website's database. A total of 490 samples obtained in this study were analyzed with structural equation modeling. The results indicates that the flow's most valuable antecedent is feedback in the context of online purchase. The dimensions of “enjoyment”, “perceived control” and “merging of action and awareness” has positive and time distortion has negative significant effects on online purchase intention. However, no significant effects of the concentration and curiosity on online purchase intention were determined.     

The Hare and the Tortoise: Do Earlier Adopters of Online Channels Purchase More?

Earlier adopters of a product or service tend to be more valuable than later adopters. Does this empirical generalization equally apply to earlier adopters of a multichannel retailer's new online channel too? This study segments customers on the basis of their responses to a new online channel and investigates the effects of their online channel adoption on purchase volumes across segments. The data cover 12.5 years of purchase history and individual transactions at a large multichannel French retailer of natural health products. Contrary to conventional wisdom, it is not innovators or early adopters, but rather the late majority segment that purchases more than the other segments, both before and after online adoption. Adoption of the firm's new online channel does not influence purchase volumes of heavy shopper segments (late majority and innovators), whereas light shopper segments tend to increase their purchases after adopting this new channel.     

Need-for-touch and online purchase propensity: A comparative study of Portuguese and Chinese consumers

This study analyses the impact of Need-for-Touch (NFT) on online purchase propensity by evaluating the influence of the consumer's country of origin. Although NFT has been a major topic of research over the past years, the link between NFT and purchase propensity has rarely been empirically proven. For assessing the relationship an online questionnaire was made available in Portugal and China. A total of 295 complete responses were obtained and the data studied through exploratory and confirmatory factor analysis, namely multivariate analysis of variance and structural equation modeling using AMOS. The results indicate that the consumer's country of origin seems to affect the relevance of the sense of touch for apparel. Consumers with high levels of NFT are more likely to engage in additional brand touchpoints and consequently having stronger brand experiences. The impact of perceived information credibility and brand experience on the perceived product quality influences the propensity to search and to purchase online. Consumer NFT was shown having no direct influence on online purchase propensity but instead is mediated by other variables such as brand experience and the online research propensity. This study is innovative by comparing the NFT between two very different cultures and by providing insights on the relationships between cultural differences and NFT, which could be of great interest for Portuguese companies planning on investing in the Chinese market and vice versa.     

Managing customer experiences in online product communities

Many companies have established online product communities or forums as a vehicle to extend product support services to their customers. Customers' interactions in such online forums with peer customers and vendor representatives resolve their product-related queries as well as inform on their product purchase decisions. Despite the significance of such interactions, there has been limited theoretical attention so far on how companies can manage customer experiences in online product communities. Drawing on theories and concepts from diverse areas including computer-mediated communication, consumer psychology, and online communities, this study proposes a four dimensional construct - Online Community Experience (OCE) - to capture customer experiences in such online product communities, and examines its impact on customer attitudes regarding the product, the company, and the quality of service. Data collected from customers in online product forums offered by four companies is used to test the study hypotheses. Implications for research on online consumer behavior and marketing are discussed.     

How information processing and mobile channel choice influence product returns: An empirical analysis

The mobile internet is starting to overtake the desktop device‐based internet as a purchase channel. Its impact on consumer behavior is therefore increasingly important to understand. This study seeks to understand and measure, if usage of mobile devices for online purchases leads to a lower decision quality and, in effect, to more product returns. In doing so, the impact of information environments on the end‐to‐end consumer purchase decision‐making process is better understood and it is investigated, if the information environment of mobile devices leads consumers to take more error‐prone purchase decisions. An exclusive data set spanning more than 140 million transactions of a European online retailer is used to empirically analyze changes in product return behavior after mobile channel adoption. The results show that mobile channel usage is positively related to product returns, overall and for both, purchases made with mobile devices and purchases made with desktop devices, although prior literature predicts that returns from desktop purchases should not increase. These findings suggest that through new channels, consumers’ information environment is altered sufficiently to affect their decision accuracy. Moreover, the results indicate that previous research may be overestimating the positive effect of mobile channel adoption on sales by disregarding changes in product return behavior.     

Does sustainability really matter to consumers? Assessing the importance of online shop and apparel product attributes

Although there is a shift in consumers' consumption behavior towards more sustainable patterns across a variety of different contexts, sustainable apparel has still not become a mainstream trend despite the textile industry's excessive usage of valuable resources. Albeit extant research found different potential barriers elucidating why consumers hesitate to purchase such apparel, it remains unclear whether sustainability really matters to consumers in a clothing context and further, which aspects are of relevance during consumers' purchase decision. We thus conducted two studies with four best-worst scaling experiments in which 4,350 online shoppers assessed the importance of both conventional and sustainable apparel attributes, as well as sustainable apparel attributes only, and the willingness to pay for sustainable product attributes. We further inquired the importance of conventional as well as sustainable online shop attributes. Our findings indicate that conventional apparel attributes such as fit and comfort, price-performance ratio, and quality are of higher relevance to consumers than sustainable attributes. The most important sustainable apparel attributes are the garment's durability, fair wages and working conditions, as well as an environmentally friendly production process. Consumers also indicated to prefer the latter three attributes to a 20% discount. Moreover, consumers demand less as well as sustainable packaging, free returns, and discount campaigns. Our findings reveal a gender gap regarding green consumerism with female respondents assessing most sustainable attributes as more important than male respondents do.     

Investigating the impact of shopper personality on behaviour in immersive Virtual Reality store environments

The increasing availability of immersive Virtual Reality (VR) hardware in private households has opened up significant opportunities for innovations in online retailing. Online retailers can develop realistic, albeit simulated, three-dimensional retail environments that use immersive elements to create a more exciting online shopping experience. Nevertheless, to date, very little is known about how observed shopper behaviour in immersive VR store environments compares to existing knowledge in the physical or other online retail research literature. To that end, this paper focuses on human personality traits and whether these translate to familiar observations of in-store shopper behaviour. Specifically, the research examined the ‘Big Five’ personality traits – agreeableness, conscientiousness, extraversion, neuroticism, and openness to experience, and their impact on purchase behaviours such as product inspection time, proportion of private label purchases, and impulsive buying. It is further investigated how the purchase behaviours impact the outcomes of the shopping trip. The results revealed a variety of expected relationships between purchase metrics and the outcomes of the shopping trip; however, in stark contrast to the findings of extant studies, shopper personality did not show any impacts on the investigated purchase behaviours. Further research is needed to determine whether this failure to replicate past studies of shopper personality was, in fact, due to differences in the store environment or rather due to the moving from survey-based method of shopper data collection to naturalistic observation. Nonetheless, this finding has important implications for e-retailing strategies and market research practices.     

A comparison of online and offline gender and goal directed shopping online

The aim of this paper is to model the effect of the consumers’ perceptions of their offline and online gendered behaviour on online utilitarian shopping motivation and purchase intentions. We hypothesise that when consumers shop online, their behaviour is mediated by two gendered behaviours, namely offline and online. To test this hypothesis, 515 usable responses were collected in face-to-face interviews. The conceptual model was tested with confirmatory factors analysis (CFA) and structural equation modelling (SEM) across five product categories. Our findings show that the effect of a consumer's perception of their gendered behaviour offline vs. online on online utilitarian shopping motivation and purchase intentions is significantly different. In particular we found that utilitarian shopping motivation online has a significant effect on purchase intentions online mediated by gender (online) overall: strongly for females but not for males. Conversely, utilitarian shopping motivation online has a significant effect on purchase intentions online mediated by gender (offline) for males but not overall and for females.     

The power of beauty? The interactive effects of awe and online reviews on purchase intentions

Prior research has established that online consumer reviews can have significant influences on the evaluations of a product or a service. In particular, studies show that negative (vs. positive) reviews lead to unfavorable evaluations because they heighten purchase risk. The present research seeks to examine a contextual cue that can alleviate this potential problem. Across three studies, this research demonstrates how the emotion of awe – elicited by a beautiful product in the advertisement – can reduce the perception of purchase risk, leading to favorable consumer evaluations of a product or service even though it has negative reviews. The implications of this research are beneficial for advertisers by highlighting the potentials of eliciting awe (e.g., by utilizing beauty) in their advertisements.     

Online purchase determinants of loyalty: The mediating effect of satisfaction in tourism

The purpose of this research is to investigate the impact of four online purchase determinants (website image, routine, website knowledge and innovativeness) on customer loyalty and the mediating effect of customer satisfaction within the context of e-commerce. The research model is tested using data collected from 3188 regular buyers of the national leader in the sector being studied. The statistical analyses were conducted within the Structural Equation Modeling framework. Results show that there is a complete mediating effect of e-customer satisfaction in the relationship between three online purchase determinants (website image, online routine and website knowledge) and e-customer loyalty. The research results provide an important insight into how e-companies can pursuit and use delight to highlight customers' loyalty. These results allow for a better understanding of customer specificities, with practical actions aimed at their real needs and expectations.     

Consumer motivations and concerns in online auctions: an exploratory study

This investigates the reasons behind the dramatic growth of Internet auction companies such as eBay, exploring into why so many consumers have been motivated to turn to online auctions to purchase and sell goods. It is found that the ability to purchase items at lower prices than from retail stores is the primary motivation, along with having access to previously unobtainable items. Concerns mainly relate to potential fraudulent transactions, although the negative feedback system is found to be vital in the reduction of fears over fraud. Interaction with other auction users is found to be important for practical reasons such as information seeking, rather than for enjoyment. The main conclusion is that the benefits of using Internet auctions far outweigh the risks involved.     

Is showrooming really so terrible? start understanding showroomers

The customer journey is more omni-channel than ever. In this scenario, so-called showrooming behavior emerges as a growing trend that is usually considered by retailers as a threat. The purpose of this research is to analyze whether showrooming, when compared with online buying behavior in which the customer does not visit the store prior to the purchase, has a positive effect on the price paid online by the customer. The empirical research is based on the database compiled by GfK, which contains detailed information about the shopping journey of 4067 customers who purchased products from different retail sectors. The results, derived from the estimation of several regression models, reveal that showroomers who use their smartphones in store are more likely to purchase products at a higher price, which explains why these customers can be of special interest to retailers.     

Mining the text of online consumer reviews to analyze brand image and brand positioning

The growth of the Internet has led to massive availability of online consumer reviews. So far, papers studying online reviews have mainly analysed how non-textual features, such as ratings and volume, influence different types of consumer behavior, such as information adoption decisions or product choices. However, little attention has been paid to examining the textual aspects of online reviews in order to study brand image and brand positioning. The text analysis of online reviews inevitably raises the concept of “text mining”; that is, the process of extracting useful and meaningful information from unstructured text. This research proposes an unified, structured and easy-to-implement procedure for the text analysis of online reviews with the ultimate goal of studying brand image and brand positioning. The text mining analysis is based on a lexicon-based approach, the Linguistic Inquiry and Word Count (Pennebaker et al., 2007), which provides the researcher with insights into emotional and psychological brand associations.     

Better or Worse? Effects of online promotion habits on customer value: An empirical study

Online frequent and uninterrupted price discounts easily cause customers to form general tendencies to purchase promotions, or ‘online promotion habits’. Compared with offline promotion shopping, the distinct features of online promotion shopping make customer behaviours highly changeable and leave the effects of online promotion habits on customer value a puzzle. Using a dataset of real transactions from a leading online apparel retailer in China, this study makes continuous observations of customers’ online promotion habits. Drawing on the behavioural learning theory, we empirically investigate the dynamic effects of online promotion habits on customer value. The results reveal that after customers form online promotion habits, their customer value increases significantly. Furthermore, among customers with online promotion habits, online promotion habits exert an inverted U-shaped effect on customer value. Namely, as online promotion habits strengthen, customer value increases accordingly, yet negative outcomes show if online promotion habits exceed a certain level. We discuss the theoretical and managerial implications of our findings, which will enable researchers and practitioners to measure and dynamically manage customers’ online promotion habits.     

Exploring the core factors of online purchase decisions by building an E-Commerce network evolution model

With the continuous development of the Internet and information technology, online shopping has become a popular purchase mode. The in-depth analysis of consumer decision-making in online shopping is an important issue. Our purpose is to study how the factors of the shopping web pages corporately affect online purchase decisions and determine which are the core factors that affect consumer purchase decisions. We screen the influencing factors on the shopping webpage and deploy e-commerce network evolution based on various weight combinations of these factors to generate sales distributions of online products. By comparing these simulated sales distributions to the real data, the optimal weight of each factor is obtained. The results show that sales volume and the number of high-quality negative comments are the most important factors influencing consumers' decision-making, the number of comments and the number of comments with pictures are relatively minor factors, store type and video presentation of the products have the least impact. The optimal simulated sales distribution is very close to the real case and verifies that the introduced network evolution technology is applicable. The proposed model can be used as a uniform evaluation platform for correlational study, which is an important link in the purchase research chain.     

Online Purchase Paths and Conversion Dynamics across Multiple Websites

Low transportation costs online allow shoppers to visit multiple e-commerce sites for a purchase decision. This research investigates online shoppers’ visit and purchase behaviors across competing websites. To consider that shoppers’ longitudinal cross-site visit data may consist of several unobserved shopping episodes, we propose a modeling approach to probabilistically clustering and relating online visits to latent shopping episodes, based on the temporal patterns of the visit events. The inferences are then used to examine shoppers’ visit-to-purchase behavior across websites. Using Internet clickstream data on individual-level browsing and transaction records at major air travel sites, we find that online shoppers’ cross-site visit patterns tend to be clustered and the purchase propensity is significantly higher at later visits within a visit cluster, compared to earlier visits. As our results suggest the possibility that visit clusters can serve as a reasonable proxy for shopping episodes, we look further into shoppers’ website choice and purchase behaviors within a cluster. We discuss how the cluster-based analysis can help managers tailor online marketing and advertising strategies based on shoppers’ cross-site visit and purchase patterns.     

Online reviews as a pacifying decision-making assistant

Drawing on uses and gratification theory, this article elucidates how consumers capitalize on online reviews for purchase decisions in three markets (Taiwan, Thailand, and Vietnam). Three studies demonstrate this objective. Study 1 considers online reviews as a one-dimensional construct consisting of three behavioral components, including textual comments, contextual images, and star ratings, that had been validated by using reliability and validity analyses. Study 2 employs an ANOVA to analyze how these components relate to different consumer groups in terms of gender, age, and location. Study 3 explores the mediating role of online trust in the online reviews and purchase decision relationship under the moderating effect of the perceived effectiveness of social media platforms. Using a cross-national survey and a two-stage partial least squares analysis, the authors substantiate the proposed relationships and discuss the theoretical and managerial contributions of this research.     

How Online Product Reviews Affect Retail Sales: A Meta-analysis

A growing body of research has emerged on online product reviews and their ability to elicit performance outcomes desired by retailers; yet, a common understanding of the performance implications of online product reviews has eluded us. Scholars continue to navigate an array of studies assessing different design elements of online product reviews, and various research settings and data sources. We undertake a meta-analysis of 26 empirical studies yielding 443 sales elasticities to examine how these variables relate to retail sales. Building on well-established meta-analytical methods, we address the following questions: How does review valence influence the elasticity of retailer sales? What about review volume? For which product types and usage situations do online product reviews have a greater impact on retailer sales elasticity? Which types of online reviewers and websites exert the greatest influence on retailer sales elasticity? Our study answers these important questions and provides a much needed quantitative synthesis of this burgeoning stream of research.     

Positive emotion bias: Role of emotional content from online customer reviews in purchase decisions

Abundant research has investigated the impact of review valence on purchase decisions, but has reported mixed findings. To reconcile these mixed findings, this study unearths the understanding of review valence from the perspective of the emotional content in online customer reviews. To explore the effect of emotional content on purchase decisions and the moderating role of emotional content on non-emotional content and purchase decisions based on a heuristic-systematic model, a laboratory experiment with 106 subjects was used to empirically test the research hypotheses. The results show that pleasant online customer reviews lead to a higher purchase likelihood compared to unpleasant ones. Perceived credibility and perceived diagnosticity have significant influence on purchase decisions, but only in the context of unpleasant online customer reviews. The findings demonstrate positive emotion bias for online customer reviews, and carry important practical implications for both sellers and customers.