The effect of product positioning in a comparison table on consumers’ evaluation of a sponsor

This paper examines the effect on consumers’ perceptions resulting from the positioning of a sponsor in relation to a competitor or competitors in a comparison table of a print advertisement. We hypothesize when a sponsor places its product in the right-hand panel and the competitor’s product in the left-hand panel, respondents will react with a favorable evaluation for the sponsor as a result of two primary forces. The first is a general preference for an object positioned on the right as opposed to an object positioned on the left. The second is a vastly prevalent left-to-right reading habit. The prevalent left-to-right reading habit can lead consumers to subconsciously perceive this layout as a positive comparative advertisement, and the reversed placement is perceived as a negative comparative advertisement. We confirmed the hypothesis with three laboratory experiments.     

Online Shopper Reviews: Ramifications for Promotion and Website Utility

Today's consumers are empowered with online shopper reviews which are mostly written and posted by buyers, customers, users, or visitors at a website. Shopper reviews will become more popular and ubiquitous in e-tailing in the near future. However, the marketing literature is still limited when it comes to knowledge of how shoppers perceive and use online reviews in their purchase decisions. Hence, this study explored shoppers’ predispositions toward positive or negative reviews and examined the impact of consumers’ attitudes and usage patterns on their perceived helpfulness and credibility of online shopper/peer reviews. One interesting finding from our study of 342 online shoppers was that consumers who would pay greater attention to positive reviews gave reviews more credible and usefulness ratings than their counterparts who would focus on the negative reviews.     

The Effects of Credible Online Reviews on Brand Equity Dimensions and Its Consequence on Consumer Behavior

Consumers are using social media platform to gain and share knowledge on brands. In the virtual environment, consumers are exposed to various online reviews on brands that leave an impression of brands on the minds of the consumers. The present study combines Yale attitude change model and attribution theory to examine the effects of credible online reviews on brand equity dimensions. The present study views, through the lens of Yale attitude change model, the various factors that affect credibility evaluation of online reviews. Further, attribution theory is used as the theoretical backbone to analyze the effects of credible online reviews on brand equity dimensions and finally on purchase intention. This study uses structural equations modeling (SEM) to investigate the impact of online credible reviews on customer based brand equity (CBBE) dimensions and its consequence on consumer behavior (purchase intention). Results indicate that source and review quality are the most important factors that affect consumer's credibility evaluation of a review. Online credible reviews have more significant impact on brand awareness, perceived value and organizational associations and thus leads to consumer's purchase intention in the context of consumer electronic products in India.     

Competitor identification,perceived environmental uncertainty,and firm performance

To create a competitive advantage and generate superior performance, firms must first identify rivals. However, there is little understanding of how perceived environmental uncertainty affects competitor identification, why some firms are better at identifying domestic versus foreign rivals, or how competitor identification is related to firm performance. In this paper we theorize that perceived environmental uncertainty is an important antecedent of competitor identification; it influences how many competitors a firm identifies. Our theory also suggests that different firm characteristics influence domestic/foreign competitor identification and that there is an inverted‐U shaped relationship between under/overidentification of competitors and firm performance. Based on a large sample of Taiwanese firms, we find support for each of these ideas. Our study helps reinforce the importance of competitor identification for firm success. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Too Popular to Ignore: The Influence of Online Reviews on Purchase Intentions of Search and Experience Products

Consumers assess the credibility of online product reviews to guide their purchase decisions. However, little is known about how consumers determine the credibility of online product reviews. This article examines the effect of the level of detail in a product review and the level of reviewer agreement with it on the credibility of a review and consumers' purchase intentions for search and experience products. Overall, the results indicate that more credible reviews lead to higher purchase intentions. Interestingly, the findings also demonstrate that consumers determine the credibility of a review differently for search and experience products. For search products, consumers deem online reviews to be more credible when the reviews contain detailed information about the product. However, for experience products, consumers determine the credibility of a review by assessing the level of reviewer agreement with a review. The lack of diagnosticity of detailed information in online reviews of experience products is attributed to the idiosyncratic nature of experiences. Implications for research and practice are discussed.     

Comparative advertisements and schadenfreude: when and why others’ unfortunate choices make us happy

Comparative advertisements often feature situations depicting consumers who use competitors’ brands being subjected to misfortunes. We examine schadenfreude, the pleasure derived from the misfortunes of others, as an affective response elicited by comparative ads, as well as consumers’ beliefs in tempting fate as a heretofore unexamined influence thereof. Consistent with our theory, we show that comparative ads depicting the misfortunes involving lower-quality (vs. higher-quality) competitors elicit greater schadenfreude, and that this is because choosing the former is perceived to tempt fate and to be more deserving of misfortune than the latter. Moreover, heightened levels of schadenfreude in turn lead to more positive attitudes and increased purchase intentions among consumers who are more (vs. less) reluctant to tempt fate.     

Do consumers still believe what is said in online product reviews? A persuasion knowledge approach

The objective of this paper is to examine the effects of knowledge about manipulated online product reviews on the effectiveness of such reviews in influencing consumers' product evaluations. The results of two empirical studies show that consumers clearly differ with regard to their knowledge that product reviews can be manipulated and that consumers who have such knowledge are less influenced in their product evaluations by reviews, specifically by negative ones. Furthermore, the effects of negative reviews are even weaker when consumers acquire their knowledge through a highly credible source (compared to a less credible source).     

“Switching is easy”—Service firm communications to encourage customer switching

For several service industries, customer acquisition is challenged because of matured markets. Winning new customers typically means encouraging the competitors׳ customers to switch. This article analyzes “Switching is easy”-messages of retail banks. In their marketing communication, UK banks focus on several aspects to decrease perceived switching costs of their competitor customers. However, many facets stay unmentioned such as stress-related dimensions of switching a relationship. The study therefore contributes to service research by outlining how service firms focus on to decrease perceived switching costs of bank customers to acquire them from competitors.     

The effects of competitive context on consumer response to price changes

ABSTRACT

This paper aims to understand how a brand’s price level, relative to its competitors, will affect consumers’ responses to price changes of the brand. The study uses experiments to examine brand choice responses to price increases and decreases across contexts differing in competitor brands and their respective prices. These experiments are conducted with six consumer goods categories. The research identifies three key factors that affect the size of responses to brand price changes – (1) passing a competitor brand’s price, (2) narrowing versus widening the price gaps with competitors, and (3) whether competitors are predominantly higher or lower priced brands.     

Investigating the effect of quality of grammar and mechanics (QGAM) in online reviews: The mediating role of reviewer crediblity

Grammar and mechanics are important components of written communication and provide signals of credibility. Although past research has documented general effects of grammar and mechanics, to date, the influence of quality of grammar and mechanics (QGAM) of online reviews remains largely unexamined. Through the lens of ELM, the present research examines QGAM of a review as a peripheral cue influencing the perceived credibility of a reviewer, finding that reviews with high QGAM have higher perceived credibility and exert a stronger influence on purchase intentions. Meanwhile, reviews with low QGAM are not as credible, influencing purchase intentions less. Product type, review length, and review valence moderate these influences, such that QGAM is more important for reviews of experience goods and reviews of shorter lengths. Further, reviewer credibility fully mediates positive reviews but does not mediate negative reviews. Implications, limitations, and future research directions are discussed.     

Exploring effects of source similarity,message valence,and receiver regulatory focus on yelp review persuasiveness and purchase intentions

This study is among the first to investigate the impact of message, source, and receiver characteristics on user attitudes toward Yelp reviews, with the subsequent impact of these attitudinal evaluations on review persuasiveness. Specifically, it examines the roles of review valence (positive/negative) and sidedness (one-sided/two-sided), as well as perceived similarity with the reviewer, on user perceptions of helpfulness, trustworthiness, and credibility of the review. The study also tests moderating effects of perceived source similarity and user regulatory focus on the relationships among message characteristics, attitudinal variables, and purchase intentions. Our results disconfirm the negativity bias reported in previous studies and indicate that positive reviews are perceived as more trustworthy, credible, and helpful than negative or two-sided reviews. Review helpfulness and credibility, in turn, positively impacts its persuasiveness, with regulatory focus playing a complex nuanced role in the persuasiveness – behavioral intentions relationship. Based on the findings, future research avenues and managerial implications are proposed.     

Flirting with the enemy: online competitor referral and entry-deterrence

Internet retailers often compete fiercely for consumers through expensive marketing efforts like search engine advertising, online coupons and a variety of special deals. Against this background, it is somewhat puzzling that many online retailers have recently begun referring their website visitors to their direct competitors. In this paper, using an analytical model, we examine this counterintuitive practice and posit that an entry deterrence motive can potentially explain this marketplace puzzle. Specifically, we develop a model where two incumbents compete for consumers” business while facing a potential entrant who is deciding whether to enter the market. In addition to setting the price, each incumbent firm could potentially display a referral link to its direct competitor. Our analysis reveals that when confronted with a potential entry, an incumbent may refer consumers to its competitor, intensifying the market competition that could result in shutting off the entrant. Furthermore, we show that when referral efficiency is exogenous, it is possible that in equilibrium only one incumbent refers its customers to competitor (i.e., one-way referral) or both incumbents refer their customers to each other (i.e, two-way referral). When referral efficiency is endogenous, the ex-ante symmetric incumbents may choose asymmetric referral efficiencies ex-post. We extend the model in a number of directions including making the entrant share endogenous and allowing incumbents to be asymmetric. Overall, our results indicate that firms may be motivated by entry deterrence to voluntarily refer consumers to their direct competitors even when they are paid nothing for the referral.     

Impact of Online Reviews on Consumer’s Hotel Booking Intentions: Does Brand Image Mediate?

Abstract

The recent trend suggests that people are more inclined to online hotel reviews to take online hotel booking decisions. The present study argues that when consumers are exposed to online hotel reviews, it draws an impression of the hotel brand in the mind of consumers, resulting in influence their hotel booking intentions. The current study determines the mediation effects of brand image between credible online hotel reviews and consumers’ hotel booking intentions. To ascertain the uni-dimensionality of the scales, the present study executes exploratory factor analysis. The ensure the internal consistency of the variable scales, the study determines Cronbach’s alpha. To measure the mediation effects, the present study performs structural equation modeling bootstrapping method. Data analysis reveals that marketers should look at hedonic brand image, which ultimately influences consumers’ hotel booking intentions. This is a unique study that ascertains the type of brand image that actually mediates between the impact of online hotel reviews and consumers’ hotel booking intentions. In addition, the paper furnishes theoretical background on how people interpret online hotel reviews and its effects.     

When do unethical brand perceptions spill over to competitors?

We examine whether the unethical actions of marketplace brands (e.g., the Volkswagen emissions scandal) hurt the ethical perceptions of competing brands (e.g., Ford, BMW). Across two studies, we find evidence for this unethical spillover effect and show that it can negatively affect consumers’ liking and purchase intentions for a competing brand. The results show that the spillover effect (1) only occurs for similar competitors and (2) is moderated by construal level (CL). Specifically, the spillover effect is more likely to occur when consumers focus on the finer details of the unethical brand’s transgression (i.e., low CL) but not when they focus on the bigger picture of the transgression (i.e., high CL). Thus, while it is intuitively appealing to assume that brands may benefit from a competitor’s foible, this research indicates that competitors may be hurt by a similar brand’s wrongdoing.     

How online reviews and coupons affect sales and pricing: An empirical study based on e-commerce platform

With rapid economic growth largely fueled by digital technologies, online reviews are among the new wave of technologies that still make a significant contribution to this new digital economy. However, there is scarce academic research in promoting or responding online reviews using reduction coupons with threshold issued by sellers and pricing decisions. We employ a three-stage least squares (3SLS) model to estimate the effects of online reviews and coupons on online product sales and price. We also extend our research using the data of two product categories. Our results mainly include: (1) Negative impact of negative online reviews on sales is moderated by price, and consumers are more tolerant of negative reviews of high-priced products. (2) Consumers' perceived usefulness of online coupons helps promote more sales and weaken the relationship between negative reviews and sales. (3) Positive online reviews weaken the negative relationship between online negative reviews and the price of product. (4) Consumers’ increased perceived usefulness of online coupons will encourage sellers to set a higher price and weaken the negative relationship between negative reviews and the price of product. (5) Compared with the search product, sellers regard negative reviews from the product with experience attributes as less helpful and apply less effective coupon promotion to response to negative reviews. Our study clarifies the interaction between online reviews and online coupons on e-commerce platforms under the operation scenario. We also provide empirical support for accurate promotion and higher sales revenue through reasonable pricing decisions and specified reduction coupons.     

User generated content: the use of blogs for tourism organisations and tourism consumers

As the World Wide Web has developed considerable bargaining power has been transferred from suppliers to consumers; there is a real need to improve market intelligence and market research for private and public tourism organisations and facilitate timely consumer decision making. This article explores the development of user generated content and specifically the use of web logs or blogs. Tourism organisations cannot afford to ignore the development of user generated content, peer-to-peer web applications and virtual communities. A recent survey found that consumers trusted more websites with reviews than professional guides and travel agencies and far from being an irrelevance, blogs are often perceived to be more credible and trustworthy than traditional marketing communications. But there is a problem: given the sheer number of possibly relevant travel blogs there is a need to locate, extract and interpret blog content and this has proven so far to be time consuming, exhausting and costly, thus negating the relative value of the information obtained. A way forward may be the use of artificial intelligence and “opinion mining” or a blog visualisation system.     

How reviewers’ use of profanity affects perceived usefulness of online reviews

This research explores the effects of profanity on perceptions of online reviews’ usefulness. Based on the prior research that described asymmetric attribution effects, we predict that when consumers see profanity in an online review, their reactions differ depending on the valence of the review. Specifically, when profanity is used in a negative review, it should reduce review usefulness because of decreased perceived reviewer objectivity. Among positive reviews, profanity increases review usefulness through greater perceived reviewer credibility. Through analysis of Yelp data, we show that the effect of profanity on usefulness depends on review valence. Experimentally, we demonstrate the opposing mediating effects of perceived objectivity and credibility on the usefulness of the review.     

An integrated model for predicting consumer's intention to write online reviews

For marketers, consumers’ increasing use of online reviews in arriving at purchase decisions is a double edged sword. On one hand, it presents opportunity for manufacturers and sellers to be highlighted for their good work, but at the same time, there remains a possibility of negative review impacting goodwill and reputation. Hence, it is important for managers to identify factors that impact consumers’ intentions to write online reviews. This research delves into this aspect by trying to identify the factors that impact reviews writing intentions of consumers for restaurants. The study extends the theory of planned behaviour with additions of variables such as ego involvement, taking vengeance and helping a restaurant. For this, 252 valid responses were obtained, and structural equation modeling was used to test the proposed model. Results indicate that perceived behavioural control, subjective norms, ego involvement and taking vengeance are significant predictors of intention to write online reviews for the restaurants.     

Born Unequal: A Study of the Helpfulness of User-Generated Product Reviews

Online user-generated product reviews have become an indispensible tool for consumers and thus for retailers who want to attract and retain consumers. Yet, relatively little is known about what causes consumers to find an online peer review helpful to their shopping tasks. Prior research examines mostly the effects of product reviews on consumer product attitude, product choice, and product sales. This paper, however, provides an analysis of the determinants of review helpfulness. In two studies, we examine the effects of review characteristics, product type, and reviewer characteristics on perceived review helpfulness. With data collected from a real online retailer, we provide empirical evidence to support our conceptual predictions. Specifically, both review valence and length have positive effects on review helpfulness, but the product type (i.e., experiential vs. utilitarian product) moderates these effects. Using content analysis of reviews, we develop a measure of expressed reviewer innovativeness (i.e., the predisposition toward new products as revealed in review content). A curvilinear relationship exists between expressed reviewer innovativeness and review helpfulness. These findings lead to pertinent managerial implications.