Cutting Through the Online Review Jungle — Investigating Selective eWOM Processing

Consumers frequently rely on online reviews, a prominent form of electronic word-of-mouth (eWOM), before making a purchase decision. However, consumers are usually confronted with hundreds of reviews for a single product or service, as well as rich information cues on online review websites (review texts, helpfulness ratings, author information, etc.). In turn, consumers face more information cues on online review websites than they can or want to process, and are likely to proceed selectively. This paper investigates selective processing of such eWOM information cues. Results of Study 1, an exploratory study using verbal protocols, confirm that consumers display selective eWOM processing patterns and are able to articulate them. Study 2 develops and applies a measurement instrument to capture these patterns. A subsequent cluster analysis on members of a large-scale online panel (N = 2,295) indicates five prominent eWOM processing types, termed “The Efficients”, “The Meticulous”, “The Quality-Evaluators”, “The Cautious Critics”, and “The Swift Pessimists”. Insights of this research can help firms to better understand consumers' eWOM processing and improve the user-friendliness of online review websites.     

Consumer Brand Hate: Steam rolling whatever I see

This study aims to investigate negative consumer‐brand relationships by developing a “Brand Hate” concept. A hierarchical Brand Hate model is theoretically discussed in light of the psychology and consumer behavior literatures. In Study‐I the Brand Hate concept was tested with two different types of consumer brand haters, true haters, and regular haters. The study found that in the study's proposed multidimensional Brand Hate hierarchy true haters display “Boiling Brand Hate” while regular haters reveal “Seething Brand Hate.” Two additional studies were developed to examine the relationship between consumer personality traits and Brand Hate, exploring which types of consumers are more prone to feel hatred toward targeted brands. Study‐II's findings revealed a relationship between consumers who are high in personality traits of “conscientiousness” and those who Brand Hate. Study‐III's findings indicated that “self‐confident” and “competitive” consumers might also be more prone to feel hatred toward those brands that perform poorly and unethically.     

Expertise Makes Perfect: How the Variance of a Reviewer's Historical Ratings Influences the Persuasiveness of Online Reviews

Online reviews have become an important source of information for consumers’ purchase decisions. Drawing upon the consumer expertise and persuasion literature, this study proposes that consumers are more willing to accept a reviewer's recommendation when his/her historical ratings in a certain product domain display greater variance. Five experiments provide consistent support for this hypothesis and the underlying process. Study 1 tests the proposed effect of a reviewer's rating variance on consumers’ willingness to accept the reviewer's recommendation. Studies 2 and 3 show that this effect can be attributed to perceptions regarding the reviewer's expertise. Moreover, this “variance-expert inference” effect is attenuated when the consumption experience of the reviewer is limited (Study 4) and when the consumers are familiar with the products (Study 5). The theoretical implications for the online review and persuasion literature and practical implications for online retailers are discussed.     

Headless: The Role of Gender and Self‐Referencing in Consumer Response to Cropped Pictures of Decorative Models

Product pictures with “headless” decorative models, whose heads have been cropped out of the pictures, are often used in online retailing. This article reports findings from three experiments comparing attitudes for clothing displayed in pictures with cropped and uncropped male and female models, focusing on the moderating effects of consumer and model gender and the mediating effects of product self‐referencing. Results indicate that the effects on product attitudes are moderated by the gender of both models and consumers and mediated by self‐referencing. Pictures with uncropped male models result in more positive product attitudes, irrespective of consumer gender. For product pictures with female models, male consumer attitudes are also more positive for products displayed with uncropped models. In fact, attitudes are only more positive for clothing shown with cropped, “headless” models when both models and consumers are female. Implications of the findings for research and practitioners are discussed.     

Consumer Decision Making Regarding a “Green” Everyday Product

One of the techniques marketers use to convert low‐involvement products into high‐involvement ones is adding an important product feature. A case in point is the common practice of adding a “green” or environmentally friendly product feature to an everyday product, something which is often assumed to elevate consumer involvement in the choice of the product. However, there is a lack of research investigating whether adding such a “green” product attribute actually makes any difference to how consumers make choices. Does the way in which consumers make decisions about groceries change when both “green” and conventional alternatives are available? Does it make them deliberate more or do they just develop another, simple choice heuristic? Based on observation and follow‐up interviews of consumers at the milk counter in two supermarkets which stock both organic (a “green” attribute) and conventional milk, it is concluded that, rather than changing the way consumers make decisions when buying this type of product, the availability of a “green” alternative seems to make “green” consumers develop a new, simple choice heuristic that allows them to do their shopping as effortless and time‐efficient as consumers buying conventional products.     

Out-of-stock,sold out,or unavailable? Framing a product outage in online retailing

Terms, such as “out-of-stock,” “sold out,” and “unavailable” are commonly used by retailers to communicate a product or brand outage. Although these terms are technically equivalent, prior research on product outage and product scarcity suggest that they may be interpreted and processed differently by consumers. The present research investigated whether the manner in which a product outage was framed elicited different consumer behavioral intentions, attributions, and perceptions in the context of online retailing. Data were collected by means of an online experiment. The experiment incorporated a hypothetical scenario approach in which research participants were asked to react to a particular combination of treatment and blocking factors. Results demonstrated that ceteris paribus, framing a product or brand outage as “sold out” produces fewer negative product and website reactions than does framing it as “out-of-stock” or “unavailable.”     

The Eyes Have It: How a Car's Face Influences Consumer Categorization and Evaluation of Product Line Extensions

This research focuses on a previously unexamined risk associated with the widely used new product development strategy of line extensions. Specifically, it explores consumer reactions when line extensions become too visually similar and examines both short‐term and longer term strategies for solving the problem. Examined in the context of consumer durables, specifically, automobiles, the results show that consumers who make categorization mistakes when trying to distinguish between two visually similar product lines have more negative attitudes not only toward the product but also toward the parent brand. The results of Study 1 confirm that providing a design vocabulary that articulates the car's design features is effective in reducing consumer's categorization mistakes. In addition, results of Study 2 indicate that changes to the car's “eyes” (headlights) are more effective than changes to the car's “mouth” (grille) in helping consumers to differentiate among cars in the line.     

Communicating nutrition information at the point of purchase: An eye‐tracking study of shoppers at two grocery stores in the United States

Providing nutrition information at the point of purchase is one approach that can be used to help consumers adopt and maintain a healthy diet. Previous research has examined consumer self‐reported notice and use of the information as well as how the design of the information affects its attention and use in a laboratory environment using eye‐tracking methodology. This study advances the literature by applying eye‐tracking methodology to explore consumer visual and choice behavior in a real shopping environment, and by recognizing that nutrition information competes with other visual stimuli in the store and consumers are vulnerable to a “limited attention span” for nutrition information in a shopping setting. Data came from a cross‐sectional survey conducted in two grocery stores in the United States in July 2014 with a convenience sample of 60 grocery shoppers while they were selecting and buying items from one of three product categories (ready‐to‐eat cereal, snacks, and soup). The study finds that point‐of‐purchase nutrition information faced strong competition for participants’ attention from other visual elements in a real shopping environment and the attention is dominated by nonnutrition elements, particularly brand/product name, product imagery, and product pricing. Nutrition‐related information, on the other hand, received much less attention, with claims and front‐of‐package nutrition symbols seen by more participants than the Nutrition Facts label. The study suggests that to more effectively enable nutrition information to “catch the eyes” of shoppers at the point of purchase, increasing consumer exposure to the information and enhancing shopper education may merit further investigation.     

Online information search termination patterns across product categories and consumer demographics

While accessing information online, consumers exhibit differences in their patterns of search, that is, time spent per search episode and search frequency. The search patterns vary across both consumer characteristics and product categories. We empirically investigate consumer online information search termination patterns, and relate the differences to product categories and consumer characteristics. Findings of such an empirical study would be useful for planning communication strategies, website design, etc. The model is calibrated on empirical data collected through online surveys. We find that consumer learning occurs when consumers search across search goods, but not when they search across experience goods.     

Brand and consumer engagement behaviors on Facebook brand pages: Let's have a (positive) conversation

This paper examines consumer-brand engagement on social media, focusing on the dynamic interplay between brands and consumers as well as among consumers themselves. In addition to liking and sharing behaviors, we look at what influences consumers to provide feedback to brands by commenting on brand posts, connect with other consumers by replying to their comments and agree with other consumers by liking their comments and replies. Drawing on a large longitudinal dataset from 2740 Facebook brand pages across 25 industries, a multilevel multivariate autoregressive zero-inflated negative binomial model is used to examine how brand post and response behaviors are related to specific consumer engagement behaviors. Results show that the amount of brand posts indirectly affects consumer comments through increased liking and sharing, but with diminishing returns. Liking is key as it increases positive and attenuates negative feedback, whereas sharing is associated with both positive and negative consumer-brand comments. Posting photos and videos encourages liking, with photos having increasing returns. Videos are the only format with a direct positive influence on consumer-brand comments, though with decreasing effect. Brand replies to consumer comments, even delayed ones, have little effect on negative conversations but prompt replies would be more beneficial as they bolster positive consumer comments. Moreover, our findings provide evidence for both a “positivity spiral” and “negativity spiral”, with the negativity spiral stronger than the positivity one. Taken together, these findings shed light on how marketers can stimulate positive conversations between brands and consumers on social media.     

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.     

Consumer Response toward Plus‐Size Models Featured in the Mainstream Media

The rise of the body acceptance movement among consumers has led several brands and media outlets to feature models with diverse body shapes and sizes. However, little research has examined consumer reactions to these nontraditional models. This exploratory study addresses this gap by examining consumer response to three different instances in which a plus‐size model was featured in a popular press magazine. Discourse analysis examined consumer‐generated online comments. Three broad themes were identified that included positive sentiment related to more inclusivity in media representations of women: concern about model body size and health, and questions around how a “plus” size body is defined. This work offers insight into consumer response to plus‐size models, sheds light into how society views the plus‐size body and health, as well as how brands can begin to integrate plus‐size models into marketing and advertising campaigns.     

“Showrooming” in Consumer Electronics Retailing: An Empirical Study

The present study focuses on multichannel retailing strategies and describes the state of consumer behavior regarding “showrooming” (the practice of examining merchandise or products in a retail store and then buying it online). Founded on the theory of planned behavior (TPB), the authors examine the antecedents of showrooming using data collected from a sample of 176 retail consumers. Based on their results, they define perceived control, website compatibility, and subjective norms as the main antecedents of consumer attitudes toward online purchases. Additionally, they state that previous experience and reasons against purchasing online are directly associated with consumers’ intention to purchase on the retailer’s website. Finally, some theoretical conclusions and practical implications for retailers are discussed.     

Hedonic and utilitarian use of user-generated content on online shopping websites

The Internet has made it possible for consumers to share reviews, opinions, and thoughts about products and services on online shopping websites. This user-generated content (UGC), which can be considered to be part of social commerce, is likely to influence other consumers’ attitudes toward a product and subsequent purchase intentions. The purpose of this study was to investigate two major uses of UGC: hedonic and utilitarian, and how they impact purchase intentions, along with users’ trust for different types of comments and reviews. Also investigated are associations between hedonic use, utilitarian use, and trust, with purchase behavior at online shopping websites. Results of this study will add to the domain knowledge related to marketing and how it impacts consumer psychology and behavior. From a practitioner perspective, marketers need to understand the impact of UGC so they can monitor this method of marketing communication as it can impact trust and purchase intentions.     

THE LAST MILE: AN EXAMINATION OF EFFECTS OF ONLINE RETAIL DELIVERY STRATEGIES ON CONSUMERS

The Internet has increased the level of importance of the end‐consumer market to transportation carriers. In two between subject experiments, carrier disclosure on retail merchant websites is examined as a strategic differentiation strategy. Predictions are offered concerning effects of carrier disclosure strategies on product delivery‐related expectations, consumer attitudes, and intentions to purchase a product online. Results from Study 1 reveal significant differences between disclosure and nondisclosure of the carrier for numerous product delivery‐related variables, as well as many differences between the six carriers examined in this first study. Study 2 extends these findings by showing that providing consumers with a choice of carrier leads to increased levels of satisfaction with the online experience and greater willingness to buy, relative to nondisclosure and disclosure strategies.     

What Is the Right Delivery Option for You? Consumer Preferences for Delivery Attributes in Online Retailing

Nowadays, online retailers are offering a variety of delivery options consisting of varying combinations of delivery attributes. This study investigates how consumers value these delivery attributes (e.g., delivery speed, time slot, daytime/evening delivery, delivery date, and delivery fee) when selecting a delivery option for their online purchases. Mental accounting theory is used to frame the research and to suggest how mental accounts for money, time, and convenience influence consumer preferences for online delivery options. Specifically, the results of a conjoint analysis show that the most important attribute in shaping consumer preferences is the delivery fee, followed by nonprice delivery attributes. For individual attributes, significant differences are found in consumer preferences between gender and income groups. Cluster analysis reveals three consumer segments that show distinct preference structures: We identify a “price‐oriented,” a “time‐ and convenience‐oriented,” and a “value‐for‐money‐oriented” consumer segment. This study has practical implications for online retailers when implementing suitable delivery strategies and designing effective delivery options to maximize consumer satisfaction.     

Taking Fake Online Consumer Reviews Seriously

Evidence discussed in this article indicates that consumers rely heavily upon consumer reviews when making decisions about which products and services to purchase online. Sellers and their marketeers are aware of this, and as a result, some of them succumb to the temptation to generate fake consumer reviews. This article argues that policymakers and regulators need to take fake reviews seriously. This is because they undermine a (potentially) effective and efficient mechanism for overcoming information asymmetry between online sellers and buyers. Consumer reviews also offer a powerful mechanism for regulating the marketplace. Sellers who sell sub-standard products or engage in sub-standard selling practices risk reputational damage. Genuine consumer reviews can therefore moderate bad seller behaviour and assist in improving the quality and efficiency of the marketplace. Although there are laws in many jurisdictions that prohibit misleading and deceptive conduct, detecting fake reviews is complex and difficult. This article proposes that one way of increasing the effectiveness of regulatory oversight is for regulators to add an “alliance approach” to their existing arsenal of regulatory systems and mechanisms.     

Color me moral: White and black product colors influence prosocial behaviors

There are “moral meanings” that people ascribe to objects in white and black colors. Namely, it seems that people have been conditioned to see objects in white color as potentially “morally good” and those in black color as potentially “bad.” In the current inquiry, we would therefore hypothesize that consumers see buying a product in white color as an act that is morally good and buying a product in black color as an act that is morally bad. If so, then, in accordance with the moral regulation theory, those who buy white‐colored products should feel licensed to behave less prosocially afterward, while those who buy black‐colored products should be more prosocial as they feel a need to compensate for their initial misconduct. We investigate such a hypothesis in six studies, examining prosociality after buying white‐ or black‐colored products. The results are consistent with our hypothesizing and highlight a moral credentials framework in particular in explaining why the effect occurs. Consequently, product colors do not only satisfy the diversity of consumer tastes but they also impact consumers’ prosocial behavior well‐beyond product choice and outside of retail domains.     

An Extended Search for Generic Consumer–Brand Relationships

Relatively few empirical studies address the question of generic relationships between consumers and brands. But a relationship‐oriented brand communication seems to have become increasingly important to companies. In this article, the authors present details of a study on generic consumer–brand relationships conducted in Germany. Based on the data of more than 900 consumers, four different types of consumer–brand relationships emerge, characterized as “best friendship,” “unemotional purpose‐based relationship,” “loose contact,” and “happy partnership.” An extended analysis of the data using advanced statistical methods supports these findings to a high degree. Furthermore, as the results of the extended analysis also suggest, numerous well‐known brands often appear within less favorable relationships like “unemotional purpose‐based relationship” and “loose contact.” These findings indicate important shortcomings of relationship‐oriented brand management in many companies and suggest the need for further work in this area.     

Understanding Customers' Intention to Seek for a Better Deal in Electronic Marketplace: The Role of Tolerance for Sacrifice Gap

ABSTRACT

Online consumers make frequent use of the Internet to search for product and price information. In this study, an online model is proposed and empirically tested in investigating the role of tolerance for sacrifice gap in understanding customers' intention to seek for a better deal. Data was collected through an online survey. Structural equation modeling was employed to test hypotheses. The results show that tolerance for sacrifice gap was not only a strong predictor of intention for continuing search but also itself being related to consumer product knowledge, perceived control, and consumer product involvement. Direct relationship between another construct “perceived reduction in sacrifice gap” and “intention to seek for a better deal” was also found. Theoretical and managerial implications are discussed.