The Cinderella moment: Exploring consumers' motivations to engage with renting as collaborative luxury consumption mode

Past literature argued that the purchase of luxury goods is driven by people's motivation to conform or fit into our economic and social system. In this study, the authors focus on a new aspect of consumption, that is, renting instead of purchasing luxury goods, backed by the emerging opportunities of sharing economy platforms. Drawing upon the analysis of spontaneous consumers' online communications (in the form of tweets), this study aims to investigate the motivations to engage with luxury garment renting within a collaborative consumption context. To this end, a series of automatic content analyses, via two studies, were conducted using the tweets posted with respect to the Run the Runway collaborative consumption platform. Results demonstrate consumers' increased willingness to show their social status through renting rather than owning luxurious apparel based on five main motivators (need to wear new clothes for a special event, inspirations created by the products/brands, possibility to explore a new way of consuming luxury goods, need to make more sustainable choices, and to increase the life cycle of each luxury product). The implications of these findings are discussed, while they pave the way for future research in collaborative consumption of luxury retailing.     

Investigating consumer attitudes and intentions toward online fashion renting retailing

Due to growth of access-based consumption businesses, it is important to understand how consumers perceive online fashion renting services. Based on two theories, the Theory of Reasoned Actions and expectancy-value approach, this study aims to examine the influence of consumers' attitudes and subjective norms on their intentions to participate in online fashion renting, and to investigate behavioral beliefs that may cause them to form favorable intentions toward online renting. In order to do this, a total of 300 sample surveys were collected from U.S. consumers. To assess the respective measurement model, confirmatory factor analyses were performed, and a structural path analysis was performed to verify the hypothesized relationships. This study empirically asserts that attitudes and subjective norms are key predictors of consumers' intentions to participate in online fashion renting. Consumers' attitudes toward online fashion renting were determined by assessing their perceptions of its relative advantages, compatibility, ownership, and ecological value. While acknowledging the influence of subjective norms and previous fashion rental experience, online fashion rental platforms are also advised to engineer strategies to engage consumers in this practice and to encourage peer referrals. This study sheds light on the determining factors that shape consumers’ attitudes towards and intentions to participate in online fashion renting, from which appropriate business strategies could be devised to enhance consumer engagement and expand the online fashion rental market.     

Modelling real-time online information needs: A new research approach for complex consumer behaviour

Abstract

A major challenge for online vendor website operations is serving information that meets visitor needs at a given point in their purchase process. The problem arises from the complexity of human behaviour, as well as changing needs with the evolution of consumer knowledge and skills through the purchase process. The most difficult element, however, is determining the effects of information provided on the site, as well as from other sources that the consumer may access, and anticipating resulting consumer needs. This paper discusses the contributions and limitations of current modelling techniques and utility studies of online consumer information to model consumer needs in real time. An alternative basis for real-time customer need appraisal is proposed using clickstream and customer input data combined with online information utility to enable more effective information serving. This requires further academic research and changes in practitioner online marketing operations.     

Why buy new when one can share? Exploring collaborative consumption motivations for consumer goods

The notion of collaborative consumption or sharing economy—where consumers share access to ownership of properties such as cars, clothes and accommodations—has gained tremendous popularity in recent years. Development of communication technologies and peer‐to‐peer communities has enabled consumers to coordinate sharing activities through various online platforms. Collaborative consumption involves sharing of both intangible (e.g., music, space and car rides) and tangible assets (e.g., household items, clothes and furniture). Activities such as renting, swapping, trading and purchasing/selling used consumer goods are included in the latter. Despite increasing academic attention on collaborative consumption, little research has been pursued in the context of consumer goods. The nature of consumption for tangible goods can be entirely different from that of intangible goods because people can exercise greater control over tangible goods, which results in greater psychological ownership than that for intangible goods. To address this gap, the objective of this study is to develop a scale that examines consumer motivations for collaborative consumption of consumer goods. Following Churchill's paradigm of scale development, the procedures of scale item generation, purification and validation were conducted via in‐depth interviews, literature review and surveys. The study identified five underlying dimensions of collaborative consumption of consumer goods: concern‐for‐sustainability, social, variety‐seeking, fun and cost‐saving. Study findings and implications are discussed, and future research avenues are suggested.     

Understanding registration influences for electronic banking

Abstract

The growth in online or e-banking has resulted in customers interacting with their banks through remote technological channels to a greater extent. That said, there is much variation in online banking registration and adoption levels and little is understood about actual customer motivators and perceived barriers to registration for online banking services. As part of a larger study exploring the impact of the Internet on bank – customer relationships, this paper reports on key findings which shed light on such motivators and inhibitors for online banking registration. The results show that convenience (through 24-hour banking access) and reassurance about security are the most important considerations for customers in registering for e-banking within the case bank. Marketing implications for the case bank, as well as the broader industry, are discussed.     

Consumers' Online Information Search for a New Restaurant for Dining-Out

ABSTRACT

By Nelson (1970)'s categorization, purchasing a service such as dining-out at a new restaurant is ‘experience-oriented’ in its nature, and its quality cannot be easily searched before the actual consumption. However, it has been suggested that the interactive nature of the Internet will improve market efficiency by creating a new channel of communication that allows the provision of information about experience attributes in a readily available format (e.g., other consumers' rating online). The paper empirically investigates this notion by exploring consumers' online information search behavior for a new restaurant for fine dining. The extent of usage of various online information sources and the perceived importance of each source are investigated in the United States and in Taiwan. Results show that information from other consumers is considered more important than information from sellers, but that US consumers favor non-Internet sources of information while Taiwanese consumers favor online sources.     

Jurisdictional Issues for Electronic Marketing

ABSTRACT

As the Internet continues to grow as an important marketing channel, the laws governing this medium require attention. Once a website goes “live,” a continuous presence is established anywhere a consumer can access the Internet and the possibility arises of being sued in a remote state or foreign country. Jurisdiction entails the power of a court to hear a given case and to require that businesses and/or individuals try the case before the court and face its judgment. An understanding of online jurisdictional issues can help marketers protect their online interests and avoid costly lawsuits. This paper considers the current body of law about jurisdiction to better understand how it may impact online business and marketing practices. Suggestions are offered to help online marketers prevent problems that can arise from jurisdictional exposure.     

Competing Online: Studying Consumer Choice Drivers for Online Financial Services

ABSTRACT

Given the rapid increase in the consumer use of online services and the increase in competition between firms that compete online, firms are faced with a crucial challenge. Having invested significant resources in transitioning consumers from using offline services to using online services, they now need to understand what drives consumers to choose between competing online services. Our study seeks an exploratory answer to the above challenge. Specifically, we consider, “what role do factors that drive consumers into using online services play in assisting firms better compete in the online space?” This paper explores the above question by quantifying the value that consumers of an online financial service place on having access to in-depth product information, an affordable online service, an easy to use online service, access to offline capabilities, and available marketing promotions. The results reported in this paper are based on a web-based discrete choice experiment in which 2,209 consumers were asked to compare various online financial service offerings, differing from each other in terms of the relative availability of our critical factors. The results demonstrate that consumer preferences (relative utilities) for various factors of an online financial service are different. Our results enable practicing managers to understand the factors that drive consumer choice when faced with competing online services. We believe that these results have both managerial and research implications for design, management and operations strategy formulation for online services.     

Interactivity Design as the Key to Managing Customer Relations in E-Commerce

Abstract

A number of studies have highlighted the importance of enhanced relationships with customers and users as a means of improving marketing performance. What seems to be missing is an understanding of how firms can improve online relationships. The current paper proposes that interactivity is a potentially important driver of enhanced online relationships. Although an increasing number of papers have dis cussed the notion of interactivity, there is no established construct to draw upon. A major contribution of the paper is scale development of the interactivity construct, both in terms of item generation and confirma tory factor testing. Because of the exploratory nature of the exercise, it is prudent to use student samples. The paper was able to develop a reliable and valid construct of interactivity. Moreover it was demonstrated that interactivity was a positive and significant determinant of online quality relationships in the two samples investigated.     

Using the Internet to Facilitate Outshopping by Rural Residents: Survey and Implications

ABSTRACT

Outshopping is the behavior of consumers who make retail purchases outside of the community in which they live. Outshopping is most prevalent in rural communities and represents a serious threat to rural retailers. This paper investigates the impact of the Internet on outshopping by rural residents and examines behavior, attitudes, and future intentions. The study results indicate that rural consumers are using the Internet to facilitate outshopping and intend to significantly increase this behavior. These future intentions appear to be driven by high levels of satisfaction with the online buying experience. Implications for rural retailers are discussed.     

Investigating the factors influencing small online vendors’ intention to continue engaging in social commerce

ABSTRACT

This study investigates the variables that determine small online vendors’ intentions to continue engaging in social commerce. Based on the theory of planned behavior (TPB) and social exchange theory (SET), eight hypotheses were developed to (1) identify the antecedents that influence small online vendors’ attitudes toward social commerce, subjective norms, and perceived behavioral control; and (2) examine the causal relationships among the variables with respect for continuous usage intention. A questionnaire survey was used to collect data on a sample of 166 small online vendor managers and employees. Partial least squares (PLS) was used to validate the proposed model. The findings show that social exchange factors (perceived benefits and commitment) significantly affect small vendors’ attitudes toward social commerce. The results further confirm the validity of TPB, i.e., attitude and perceived behavioral control have significant impacts on continuous usage intention in relation to social commerce. The findings of this study provide important insights into the antecedents of attitude for academics and practitioners, application of social computing in commerce for engaging in service innovation, and have the potential to contribute to the development of effective online marketing strategies.     

Characteristics of Internet Users and Their Privacy Concerns

Abstract

Concern about the privacy of online consumers is a global issue. Given the global nature of the Internet, companies planning and implementing e-commerce must understand the differences in privacy concerns of consumers in different cultures with different social/economic contexts to become effective in business. Motivated by this need, this study analyzes and compares the privacy concerns of online consumers in China and the United States, identifies major factors related to these concerns, and discusses the cultural/social/economic backgrounds of the related phenomena found in the study.     

Analyzing Relationships Using Macneil'S and Menger'S Approach to Exchanges

Abstract

Recent developments in understanding of the concept of “relationships ”have resulted in recognition that exchanges involve a range of complexity and duration. However much current work is at a rather macro-level dealing with “the relationship ”and/or “the exchange. ”A more micro-level approach indicates both a need to disaggregate what is exchanged into its component attributes and to recognize the role of individuals in the process of creating and maintaining a relationship. This paper summarizes both Menger'S insights into the nature of exchange and Macneil'S conceptualization of the norms within which exchanges operate. Then building on this, and using Day'S concept of value equations, the nature of exchanges will be considered.     

Community crosstalk: an exploratory analysis of destination and festival eWOM on Twitter

Abstract

Research suggests that festivals can promote a destination via online word-of-mouth (eWOM) on social media, even though the nature of this effect is not yet fully understood. Using a combination of Social Network Analysis and text analysis (qualitative and quantitative), this article examines eWOM at a tourism destination (Bournemouth) when a festival (Bournemouth Air Show 2013) is staged. The Communities of Interest of eWOM interactions on Twitter were captured and analysed to understand the structure and content of eWOM. Findings indicate that key users are usually already prominent individuals and that festivals act as both a direct generator as well as an online animator of eWOM. Finally, network size, span and scope may be useful indicators when comparing eWOM networks.     

Investigating the Moderating Effects of Perceived Technological Change on Sales Force Acceptance

ABSTRACT

Purpose: Prior literature has shown that the acceptance of new technologies can improve the long-term performance of sales forces and firms. However, new technologies are likely to introduce obstacles to acceptance, especially for those technologies that represent a massive change for the user. Sales force members who drastically change their work processes in order to integrate a technology sacrifice both time and effort and may be distracted from their primary goals (e.g. hitting deadlines or sales goals). Thus, we investigate how perceived technological change can negatively moderate individual motives to accept a new technology. Furthermore, we analyze how managerial support can help overcome the acceptance issues caused by perceived technological change.

Methodology/approach: Data for this study was collected from 163 sales force members via an online survey. Respondent data was collected using a private market research firm that provides access to online panels. We utilize structural equation modeling for factor analysis and ordinary least squares (OLS) regression for testing the hypotheses.

Findings: We find that perceived technological change negatively moderates the influence of individual goal orientation on to acceptance of new technology. We also find that managerial support, as opposed to team goal commitment, will positively moderate an individual’s goal orientation onto acceptance of new technology. This suggests that managerial support is necessary in order to encourage acceptance of technologies that present drastic change for the end user. Post-hoc analysis takes a deeper look into potential curvilinear effects, a three-way interaction, and differences among categories of technologies. This analysis reveals that the negative influence of perceived technological change specifically affects the acceptance of behavioral-based technologies, as opposed to outcome-based technologies, thus necessitating the moderating influence of managerial support.

Contribution: This study demonstrates the acceptance issues presented by technologies associated with drastic perceived technological change. This article identifies and suggests how to more appropriately enhance acceptance of technologies that introduce drastic changes by sales force employees, thus enhancing potential long-term organizational performance.     

Uncovering consumers’ returning behaviour: a study of fashion e-commerce

Abstract

The increasing prominence of e-commerce is shaping the nature and dynamics of retailing. E-commerce offers consumers lower prices, wider product categories and a more convenient shopping experience. In addition, consumers seek ways to manage the risk that is often perceived when making purchases online, which is why retailers’ online return policies have become an increasingly important attribute through which companies compete. Lenient return policies fuel unnecessary ordering and increase return rates, which in turn has major implications both for consumer behaviour and for managing the increasingly complex ecological and economical issue of online returning. Despite its relevance, prior research has paid limited attention to this evolving phenomenon. Consequently, the purpose of this study is to explore and analyse online returning behaviour in the context of fashion merchandise. As a result, 10 categories of online returning behaviour are identified that capture the reasons why consumers actually return items they have ordered online. These categories are further linked with when the decision to return ordered items emerges. Based on the results, managerial implications are provided to give guidance in managing online returning behaviour.     

Transactional and Value Creational Sources of Dependence

ABSTRACT

This paper critically reviews the nature and the role of the dependence construct in buyer-seller relationships. A distinction is made between transactional sources and value creational sources of dependence, and five different variables: goals, exchange partner actions mediating goals, motivational investments in goals, the availability of alternative exchange partners and switching costs are found to account for what we refer to as “dependence.” The proposed framework adds potential clarity to discussions and disagreements regarding the dependence concept in buyer-seller relationships by providing a unifying frame of reference that permits us to compare the insights generated by different theories. One important implication is that contradictory recommendations of different governance theories are not contradictory after all since they consider different dependence situations. Accordingly, governance choices should be based on assessments of how firms depend on each other, and not only on assessments of how high this dependence is.     

What managers should know about the sharing economy

The phrase ‘sharing economy’ has grown to become an umbrella term for a wide range of nonownership forms of consumption activities such as swapping, bartering, trading, renting, sharing, and exchanging. In spite of such a wide spectrum of behaviors, there is limited practical knowledge about how individual sharing economy practices should be managed. Building on a framework that categorizes sharing economy practices based on their detailed characteristics, this article provides extensive recommendations to managers and practitioners. We argue that each practice is a hybrid of sharing and exchange, and provides several recommendations based on the nature of each practice's offering.     

Do Product and Consumer Characteristics Affect the Relationship Between Online Experience and Customer Satisfaction?

ABSTRACT

This study utilizes a survey to understand how relevant product and consumer characteristics affect the relationship between online experience and satisfaction. Results indicate that Web shoppers' satisfaction is strongly affected by a superior online experience if they have no prior experience with the purchased brand, they are purchasing a high priced product, and their general attitudes toward online shopping are not very favorable. Further, the relationship between online experience and satisfaction was found to be stronger for females as compared to males.