Return freight strategies and selling formats in e-commerce supply chain: The perspective of consumer fairness concerns and online shopping returns

Returns and consumer fairness concerns put a huge pressure on manufacturers who sell their products online. The optimal selling format and return freight strategy become particularly important for manufacturers in an e-commerce supply chain. Therefore, we build game models for the following scenarios under different selling formats: the seller bearing the return freight costs or the return-freight insurance premiums, consumers buying insurance for themselves, and no one buying insurance. By comparing the optimal solutions of the game models under reselling and agency formats, several conclusions are derived. In the agency format, if the return-freight insurance premium is higher than a particular threshold, then the optimal strategy of the manufacturer is to decrease the selling price to encourage consumers to purchase the insurance, otherwise, the manufacturer should purchase the insurance. As the level of consumer fairness concerns and platform commission rates increase, the manufacturer should gradually move from the agency to reselling format. In the reselling format, if the return-freight insurance premium is lower than a particular threshold, then consumers will purchase insurance and this will make the platform more profitable, and conversely, the platform should bear the return freight costs.     

The use of electronic media for advertising and selling: A consumer policy outline

The purpose of the article is to summarize the use of the electronic media for advertising and selling, to identify the present or potential problems of this use for consumers, and to outline national and international consumer policies on the use of the electronic media for advertising and selling.The main suggestions for consumer policy are that consumer organizations and authorities should: (a) set aside resources for the preparation of a code of standards for the use of data media for advertising and selling, (b) follow closely what we have identified as the most urgent consumer problem, namely the use of the visual media for new ways of advertising and selling, (c) carry out detailed studies of the necessity of adjusting legislation in light of the expected developments in the field of visual media, and (d) in view of the international range of both data media and visual media investigate the possibility of international co-operation concerning the detailed consumer policy elements proposed in this article.

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Elektronische Medien in Werbung und Verkauf: ein verbraucherpolitischer Überblick

Zusammenfassung Der Beitrag schildert zunächst den Einsatz elektronischer Medien in der Werbung und im Verkauf, wie er sich in den USA und den westeuropäischen Ländern beobachten läßt. Er untersheidet dabei Daten-Medien und visuelle Medien. Anschließend versucht er, bestehende und potentiell auftretende Probleme dieses Medien-Einsatzes zu benennen, und geht dabei im Bereich der Werbung vor allem auf Fragen der Identifizierbarkeit, des Informationsgehaltes und der Strukturierung, im Bereich des Verkaufs auf Fragen der Information über Verkaufskonditionen, des Rücktrittsrechts und des Datenschutzes ein.Schließlich entwirft der Beitrag einen Vorschlag für nationale und internationale verbraucherpolitische Maßnahmen. Nach diesem Vorschlag sollten die Verbraucherorganisationen (a) Mittel für die Erarbeitung von Richtlinien für den Einsatz elektronischer Daten-Medien in Werbung und Verkauf bereitstellen, (b) dem wichtigen Problem des Einsatzes visueller Medien für neue Formen von Werbung und Verkauf auf der Spur bleiben, (c) genau prüfen, inwieweit die Gesetzgebung der zu erwartenden Entwicklung im Bereich der visuellen Medien angepaßt werden muß, und (d) angesichts der übernationalen Reichweite der behandelten Medien die Möglichkeit internationaler verbraucherpolitischer Zusammenarbeit fördern.

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Folke Ölander is Professor and Preben Sepstrup Associate Professor at the Aarhus School of Business Administration and Economics, Ryhavevej 8, DK-8210 Aarhus V, Denmark.The project has been conducted with financial support from the Nordic Council of Ministers.     

Understanding the omnichannel customer journey: The effect of online and offline channel interactivity on consumer value co-creation behavior

Building on the service dominant logic, this study explores the effect of online and offline channel interactivity on consumers’ value co-creation behavior (VCB), the mediating effect of brand involvement, and the moderating effect of cross-channel consistency (CCC). We surveyed 387 customers who engage in omnichannel shopping. The relationship between online and offline channel interactivity and VCB was positive and partially mediated by brand involvement. The interaction effect of online channel interactivity (ONI) and offline channel interactivity (OFI) had a negative effect on brand involvement when CCC was low but a non-significant positive effect when CCC was high. These findings enrich the theoretical understanding of value co-creation and provide insights into omnichannel management.     

The reluctant Hong Kong consumer: purchasing travel online

Hong Kong consumers have embraced the web but appear reluctant to buy airline tickets online, suggesting that perceptions of risk outweigh perceived convenience. In this study we identify that both risk and convenience factors are associated strongly with willingness to purchase, particularly privacy, security and poor customer service, time savings, site usability and information provision. We identify further that the experienced shopper is only moderately satisfied and that satisfaction appears to be associated strongly with willingness to make further purchases. Overall, findings suggest that although consumers recognize a number of benefits, there is deep‐rooted resistance to buying this particular product online. The explanation may lie in a combination of the physical density of the Hong Kong market, love of the whole shopping experience and a desire to minimize risk. We conclude that to tempt consumers online airlines and agents must target the Hong Kong market with a clear value proposition which includes user‐friendly sites, streamlined payment procedures, on‐ and offline customer support, price‐related promotions and tailored offline services which reinforce online offerings.     

Understanding the online consumer: A typology of online relational norms and behavior

Relational norms governing Web-based interaction provide the basis for a typology of relationship orientation manifested by consumers online. Clustering techniques are applied to survey data collected online to identify four groups: Transactional Community Members, Socializers, Personal Connectors, and Lurkers. Cluster assignment is validated by examination of segment means, under volitional versus constraint-based marketing contexts. Relational profiles are developed, differentiated by the strength of relational norms and exhibited interactive behavior. Results suggest investment in community-building infrastructure (i.e., chat rooms, bulletin boards, interactive events), has a positive effect on the future loyalty intentions of highly relational patrons. Implications and future research directions are discussed.     

Consumer inferences and consumer preferences. The status of cognition and consciousness in consumer behavior theory

This conceptual paper discusses the so-called ‘non-cognitive’ revolution in modern Consumer Behavior Theory. We argue that this new emphasis is not a radical departure when viewed from the vantage point of cognitive psychology. Cognitive psychology has become a way of studying many, if not most, forms of behavior; as it grows and expands, it becomes less correct to equate it with the study of only some forms of behavior (cognition). It is often the case that consumer researchers associate the term ‘cognitive’ with the conscious, the rational, the verbal and, by implication, call non-cognitive the unconscious, subconscious or non-verbal phenomena. However, many findings on ‘non-cognitive’ processes are the result of research in cognitive psychology. Our paper therefore starts out by discussing the nature of the cognitive Consumer Research Tradition. It points out that the distinction between conscious and automatic processes is more fruitful than that between cognitive and non-cognitive ones. The recent emphasis on emotional processes and direct behavior manipulation is discussed in this light. Implications of the distinction for consumer and marketing research are mentioned in a concluding section.     

Advancing versus delaying payments and consumer time orientation: A personal selling experiment

The authors propose that an individual's capacity to plan and delay consumer decisions may impact purchases within personal selling situations. An experiment was conducted to investigate the effects of postponing or expediting a payment for a car on purchase intentions. A scale, developed to categorize future- and present-time oriented individuals, was employed as a moderating variable. The results indicate that a present-time oriented person tends to prefer delayed payments over immediate payments. In contrast, a future-time oriented person is more likely to prefer immediate payments than a present-time oriented person. The results are discussed in relation to applications for developing adaptive selling strategies. © 1995 John Wiley & Sons, Inc.     

Romanticism and wanderlust: An effect of personality on consumer preferences

This study investigates the role of romanticism versus classicism in determining consumer preferences among various types of vacation trips. Specifically, it proposes a personality index intended to measure romanticism versus classicism (RC) and reports an experiment that supports both the reliability of the proposed a priori RC Index and its validity in moderating the utilities of two travel features (risk and warmth) as determinants of travel preferences. © 1995 John Wiley & Sons, Inc.     

Equilibrium in supply chain network with competition and service level between channels considering consumers' channel preferences

This paper considers a dual-channel supply chain network consisting of multiple competing manufacturers, multiple competing retailers and multiple demand markets. Each manufacturer produces and distributes his products via direct e-commerce channel along with traditional physical channel. The manufacturers also provide services for the consumers in both channels, while the retailers only offer offline services to the consumers. On this basis, a dual-channel supply chain network equilibrium model with pricing and service decisions are established based on variational inequality theory. Nash equilibrium solutions are obtained by modified projection and contraction method. Combined with numerical examples, we analyze the impact of three critical factors on the equilibrium states and profits. Some interesting managerial insights are derived. We find that the profits of the manufacturers decrease (increase) in the raw material conversion ratio under single channel case (dual-channel case), while the increase of the raw material conversion ratio always benefits the retailers and the whole dual-channel supply chain network; the service level in each channel is positively correlated with its transaction volume. There are significant inconsistencies among the best combinations of cross-channel price coefficients between two channels for the manufacturers, the retailers and the whole dual-channel supply chain network. The same equilibrium decision (service level, price) or profit may exhibit the opposite changing trend with respect to cross-channel price coefficients under two cases of active e-commerce transaction and inactive e-commerce transaction. When the introduction of e-commerce channel can bring more profits for the whole dual-channel supply chain network, the manufacturers should provide reasonable allocation schemes of profit increment for the retailers to satisfy their participation constraints.     

Exploring consumer attitudes to online collaborative consumption: A typology of collaborative consumer profiles

Online collaborative consumption enhances peer networks, members of which communicate, collaborate, and even deliver services to one another via digital sharing platforms. Despite the tremendous increase in collaborative consumption, due in large part to the development of the Internet, the reality of the economic and social movements that underpin this trend is much less visible. Of course, not all consumers seek collaborative consumption or interact through online platforms. Using a qualitative approach, this paper aims to investigate motivational factors and barriers against collaborative consumption and to establish a typology of collaborative consumer profiles, identifying the most suitable type of online sharing platforms for each profile. The findings reveal the following collaborative consumer profiles: committed, pragmatists, intermittent, and skeptical, each demonstrating different preferences for the different type of online sharing platform.     

Aesthetics and the online shopping environment: Understanding consumer responses

As the e-tail industry continues to grow with increasing competition witnessed, the study of how to entice and retain online customers has never been as important as at present. Our hierarchical model examines how the two dimensions of web aesthetics, aesthetic formality and aesthetic appeal, influence online consumers’ psychological reactions, including perceived service quality, satisfaction, and arousal, and how these psychological changes, in turn, influence online consumers’ conative tendencies. The results indicate: (1) consumers’ cognitive, affective, and conative outcomes can be significantly evoked by aesthetic stimuli; (2) the two dimensions of web aesthetics exhibit dissimilar patterns of influences; and (3) purchase task significantly moderates consumers’ responses in terms of magnitude and direction. The study provides practical guidelines for properly manipulating the two dimensions of web aesthetics based on consumers’ motivational orientations.     

The impact of promotions on consumer choices and preferences in out-of-stock situations

Out-of-stock is a prevalent problem in retailing, particularly for promoted products. This research analyzes customers' substitution decisions in out-of-stock situations by accounting for the specific impact of promotions. The results of two studies demonstrate that substitution patterns are context-dependent and change contingent on the relative positions of the promoted and the respective unavailable product. Specifically, preferences shift according to a reversed similarity effect, which is, however, reduced for stock-outs of promoted items. If a similar substitute is on sale, the effect is increased. For promoted dissimilar substitutes, the effect is offset by the simultaneous occurrence of an attraction effect. The results lead to important theoretical and managerial implications.     

Product classifications,consumer characteristics,and patronage preference for online auction

An important unanswered question in the area of Internet auctions is what dynamics influences consumer preferences for shopping on these online auctions. Two key aspects of studying what sells on the Internet auctions are (a) the characteristics of products to be purchased and (b) consumer characteristics. This research focuses on the relationship between product purchase preference, prior experience, and socioeconomic characteristics for the online auction participants. It uses product classification theory rooted in information economics and marketing. The study results are based on a US national sample of online auction participants. The findings suggest that product class affects online auction patronage, yet socioeconomic characteristics may not be as influential as once perceived. The online merchants can benefit from the inquiry to improve auctions for search, experience, and credence goods. The five key contributions of the findings add value to the theory and practice of consumer behavior.     

The informational value of multi-attribute online consumer reviews: A text mining approach

In the digital age, customers use online reviews to minimize the risks associated with purchasing a product. Major online retailers help customers choose the right product by exposing reviews that received many “helpful” votes at the top of the review section. Given that reviews that have received the maximum helpfulness votes are considered more important in purchase decisions, understanding determinants of helpfulness votes offers clear benefits to online retailers and review platforms. This study focuses on the effect of review informativeness, which is measured by the number of attributes discussed in a review, and its interplay of review valence on customers' perception of review helpfulness. We applied a word-level bigram analysis to derive product attributes from review text and examined the influence of the number of attributes on the review's helpfulness votes. More importantly, we also suggested the moderating role of review valence. Estimation results of the Zero-inflated Poisson models on 21,125 reviews across 14 wireless earbuds indicated that as more attributes are discussed in a review, the more the review can earn helpfulness votes from customers. Furthermore, the positive association between the number of attributes and helpfulness was enhanced among negative reviews. This study contributes to customers' information processing literature and offers guidelines to online retailers in designing a better decision support system.     

Engagement,telepresence and interactivity in online consumer experience: Reconciling scholastic and managerial perspectives

We propose a conceptual framework that reconciles the practitioners' view of engagement as central to online best practice and the scholarly view that tends to use other constructs to assess consumer experience. Building on research in e-learning as well as online marketing, we characterize the consumer experiential response to website and environmental stimuli as a dynamic, tiered perceptual spectrum which includes interactivity, telepresence and engagement. We construe engagement as a cognitive and affective commitment to an active relationship with the brand as personified by the website, and we propose dimensions of this construct. We discuss how the constructs of interactivity, flow and involvement are related to but distinct from the constructs within our conceptual framework. We offer suggestions for future empirical research into developing a scale for engagement and assessing its importance and utility.     

The effect of web interface features on consumer online purchase intentions

Corporations spend millions of dollars a year creating and maintaining corporate websites, yet many of these sites fail to reach the organization's goals [Freemantle D. The psychology of crm. Int J Cust Relatsh Manag 2002; http://www.superboss.co.uk/articles2main.htm]. Recent research suggests that these failures reflect poor website design, yet this research lacks the specificity necessary to provide practical recommendations for improving site performance [Rosen EE, Purinton E. Website design: viewing the web as a cognitive landscape. J Bus Res 2004; 57:787-94]. This study fills that gap by providing specific recommendations regarding website design elements that generate positive managerial outcomes. First, the study tests a wide range of design elements to determine those that provide human elements and computer elements. Next, these elements are linked through intermediaries using the uses and gratifications theory, technology acceptance model, and the concept of flow to explain purchase intentions and intentions to revisit the site.     

Influences of online store perception,shopping enjoyment,and shopping involvement on consumer patronage behavior towards an online retailer

Online apparel retailers have adopted various types of image interactivity technology (IIT), such as close-up pictures or zoom-in functions, mix-and-match functions, and 3D virtual models to enhance consumers’ online shopping experience. The purpose of the present study was to examine the influence of level of IIT on consumer perception of online retail environment, shopping enjoyment, shopping involvement, a desire to stay, and patronage intention. Significant structural relationships between these research variables were found, supporting a pleasure-oriented conceptual model of consumer patronage behavior in the online retailing environment. Theoretical and managerial implications are discussed.     

Stress,coping and consumer preferences: a two‐way transitional event history analysis

More than 20 years ago, Andreasen suggested the importance of studying life status changes for understanding a consumer’s likelihood of changing his or her preferences, attitudes and behaviours. The present study attempts to further advance this approach by providing a conceptual framework within which future research can be conducted. It also suggests the utilization of newly developed statistical techniques congenial to studying changes in behaviours and preferences over time. Cross‐sectional and longitudinal data are used to fill gaps in previous research and demonstrate the value of this approach. While Andreasen’s data revealed a significant negative relationship between stress due to life status changes and brand preference changes when subjected to conventional analysis, the two‐way transitional event history analysis of our data yielded a significant positive relationship between the two variables. The results suggest that when a consumer experiences high levels of stress, he or she is likely to engage in subsequent consumption‐coping behaviours which include changes in brand preferences.