Re-examining online customer experience to include purchase frequency and perceived risk

This research examines the important emerging area of online customer experience (OCE) using data collected from an online survey of frequent and infrequent online shoppers. The study examines a model of antecedents for cognitive and affective experiential states and their influence on outcomes, such as online shopping satisfaction and repurchase intentions. The model also examines the relationships between perceived risk, trust, satisfaction and repurchase intentions. Theoretically, the study provides a broader understanding of OCE, through insights into two shopper segments identified as being important in e-retailing. For managers, the study highlights areas of OCE and their implications for ongoing management of the online channel.     

Key service drivers for high-tech service brand equity: The mediating role of overall service quality and perceived value

Abstract

This study investigates how different aspects of service quality could have effects on overall perception of service quality, perceived value, and service brand equity. Based on a survey of active users of mobile telecommunications services in Taiwan, we obtained the following findings. First, we found that empathy, network quality, reliability, and assurance, but not tangibles and responsiveness, have a significant effect on service quality and value perception. Second, the effect of overall service quality on brand equity is partially mediated by perceived value. Third, overall service quality has differential mediation effects on the relationships between specific service quality dimensions and perceived value. Finally, empathy and network quality have direct effects on brand equity. For managers, our study suggests the importance of identifying key service drivers for building strong service brand for high-tech service firms. The identification of key service drivers could then enable these firms to make strategic decisions on services investments. It also demonstrates the importance of the humanisation of technology for services firms. This study is original in that it explores the path from specific services qualities to service brand equity.     

A closer look at similarity: The effects of perceived similarity and conjunctive cues on brand extension evaluation

Similarity between a core product and an extension product is regarded as a key success factor for brand extensions. However, a review of the literature reveals that the conditions under which high similarity is beneficial are unclear. In the first experiment, the authors test three models (the brand-attitude-transfer model, the incongruity-induced-affect model, and the “you cannot be good or bad at everything” principle) to predict the role of similarity. They find support only for the brand-attitude-transfer model. This suggests that high similarity is only beneficial when consumers evaluate brands favorably. Furthermore, little is known about how additional information provided by the supplier affects consumers' similarity perceptions without changing the extension product itself more than on a superficial level and without emphasizing common benefits. The authors compare the conditions of high and low core product/extension category similarity. Under the former condition, common peripheral advertising cues, similarity primes, portrayals of core products, and common peripheral design cues increase evaluations of extension products when the brand is evaluated favorably. Under the latter condition, these cues differ with respect to their effect.     

The effect of advertising on brand awareness and perceived quality: An empirical investigation using panel data

We use a panel data set that combines annual brand-level advertising expenditures for over three hundred brands with measures of brand awareness and perceived quality from a large-scale consumer survey to study the effect of advertising. Advertising is modeled as a dynamic investment in a brand’s stocks of awareness and perceived quality and we ask how such an investment changes brand awareness and quality perceptions. Our panel data allow us to control for unobserved heterogeneity across brands and to identify the effect of advertising from the time-series variation within brands. They also allow us to account for the endogeneity of advertising through recently developed dynamic panel data estimation techniques. We find that advertising has consistently a significant positive effect on brand awareness but no significant effect on perceived quality.

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.     

The perceived autonomy–perceived service climate relationship: The contingency effect of store-level tenure diversity

Although prior research has examined the relationship between perceived autonomy and perceived service climate, a dearth of studies exist that have explored the boundary conditions of the perceived autonomy–perceived service climate relationship. To this end, this study draws on self-determination theory and the job characteristics model to develop a multi-level model that examines the relationship between perceived autonomy and perceived service climate and how this relationship alters at varying levels of store-level tenure diversity. Based on matched data from service employees and customers from a national chain of retailers, the findings indicate that perceived autonomy is positively associated with employee's perception of service climate. However, this relationship was qualified by a curvilinear (U-shaped) moderating effect of store-level tenure diversity. Perceived autonomy had a greater impact on perceived service climate at low and high levels compared to moderate levels of tenure diversity. Implications for advancing theory in service retailing are discussed along with strategic ramifications.     

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.     

The roles of perceived risk,attractiveness of the online store and familiarity with AR in the influence of AR on patronage intention

Augmented reality has raised considerable interest over the last few years. But the questions of its benefits for online retailer is still pending. Research has shown that AR has a positive influence on patronage and purchase behavior intention via hedonic and utilitarian evaluation. The goal of this research is to extend previous works by integrating the mediating roles of perceived risk of buying a product on the online store and of attractiveness of the online store. It is also to study the moderating role of familiarity with AR. Two experiments confirm the crucial role of perceived risk in the influence of AR on patronage intention. Moreover, the more people are familiar with AR, the more AR decreases perceived risk and increases patronage intention.     

Explaining the impact of consumer religiosity,perceived risk and moral potency on purchase intentions

The role of religion has been overlooked as an antecedent to risk perception, as has moral potency, when purchasing religiously sensitive products. The aim of this study is to demonstrate how perceived risk and moral potency explain the impact of shopper religiosity on purchasing religiously-questionable products from retailers. A conceptual model was tested on a sample of 271 respondents, elucidating the complex relationships between religiosity, social and psychological risk, moral potency and purchase intention. The model offers a strong psychological explanation of how a shopper's religion may increase their perceptions of risk and personal responsibility, confidence and courage, which subsequently impact purchase intentions. Retail managers may choose to implement this model to better predict shopper adoption behaviour of new religiously-questionable products. The model allows for future empirical examinations across multiple shopping contexts and may be employed to estimate levels of demand for new products based on the extent of religiosity, moral potency and risk.     

The moderating impact of taste award on the interplay between perceived taste,perceived quality and brand trust

Based on the cue utilization theory and stimulus-organism-response (S–O-R) theory, the objective of the study is to investigate the moderating role of taste award (taste awarded vs. without taste award) on the linkages among perceived taste, perceived quality, brand trust, and willingness to buy. With this aim, the data were gathered from respondents using a structured questionnaire. Structural equation model results provided support for the positive relationship among perceived taste, quality, and brand trust. Brand trust was also revealed as a predictor of willingness to buy. The findings also support the intervening role of perceived quality and brand trust. Multi-group analyses reveal that the influence of perceived taste on perceived quality and brand trust is significantly accentuated by the taste award. Additionally, the interplay between brand trust and willingness to buy is higher in the awarded brand. Theoretical contributions and practical implications for brand producers and retailers are discussed based on the research findings.     

How to reduce perceived risk when buying online: The interactions between intangibility,product knowledge,brand familiarity,privacy and security concerns

This paper studies how product intangibility and its moderators affect perceived risk in an online shopping setting. The moderators studied were brand familiarity, product knowledge, privacy concerns and security concerns. Student samples performed online experimental tests, wherein product intangibility was manipulated. The findings indicate that both mental intangibility and physical intangibility increased perceived risk. Mental tangibility had more impact over perceived risk than physical tangibility. This study is the first to show how intangibility, product knowledge, brand familiarity, privacy and security concerns interact and affect perceived risk. Previous studies did not have the opportunity to observe the interactions of these relevant dimensions, thus not identifying which one would have a stronger effect over the perceived risk of buying online. In short, we found that when interacting with intangibility security and privacy concerns increase perceived risk to the same degree. On the other hand, product knowledge reduces the perceived risk more than brand familiarity.     

The low effect of perceived risk in the relation between hedonic values and purchase intention

ABSTRACT

This research seeks to identify the influence of perceived risk in the purchase intention environment regarding innovative technological products, and also to understand how brand trust reduces the expected impact of this risk due to the hedonic and utilitarian characteristics influencing purchase intention. Quantitative research was carried out and analysed through structural equation modelling, where the influence of perceived risk on utilitarian value and purchase intention was identified, as well as the influence of brand trust in reducing this risk. The conceptual implications of the study describe as the perceived risk moderates hedonic features less compared to utilitarian features regarding purchase intention, thus demonstrating that emotional relationships are less affected by this risk. The managerial implications suggest that devices with utilitarian characteristics should be more carefully planned according to their brand and complexity, while hedonic products do not require brand trust to guarantee consumers’ purchase intention in the current innovative scenario.     

A contextual perspective on consumers' perceived usefulness: The case of mobile online shopping

This research aims to study the origins of consumers' usefulness perceptions through the example of mobile online shopping adoption in Europe. The results of an empirical study, which is grounded in technology acceptance theory, reveal the pivotal role of consumers' beliefs about the quality of mobile online stores in the formation of usefulness perceptions prior to adoption. While this study identifies that consumers form their usefulness evaluations depending on the respective shopping tasks, the results of a moderation analysis yield usefulness predictors that differ in relevance across product categories and shopping touchpoints. This contextual perspective has implications for both adoption and (online) channel research. It also helps managers to identify starting points on how to promote (mobile) online shopping adoption.     

Brand expertise and perceived consistency reversals on vertical line extensions: The moderating role of extension direction

Vertical line extensions are a valuable growth strategy for many retail service sectors. Correctly positioning a new vertical line extension in the price/quality spectrum is an important decision that has considerable implications for bottom line profits. This paper examines the moderating role of extension direction on the effect of perceived consistency on vertical extension evaluations. In two studies, we show that a lack of perceived consistency acts as a reminder to consumers that the brand may be stretching beyond its expertise, increasing perceived performance and financial risks for upscale extensions but not for downscale extensions. As a consequence, higher consistency results in higher upscale extension favourability whereas evaluations of downscale extensions are similar regardless of their perceived consistency with the parent brand.     

Social selling cues: The dynamics of posting numbers viewed and bought on customers' purchase intentions

Online retailers provide social selling cues, such as “39 customers bought this product” or “156 customers viewed our product per hour”, to encourage sales. Revealing the numbers bought has been shown to increase purchase intentions, but what remains unexplored are the ramifications of posting the number of brand-related views or revealing both numbers bought and viewed so customers can determine the views-to-bought ratio. The number of views is much higher than the numbers bought, which customers may anchor on as a signal for product quality; however, a countervailing force is that views are a more ambiguous, hence a less diagnostic, cue. Five experiments revealed that: (1) showing the number of views or bought can, but does not always, increase purchase intentions; (2) revealing the number bought has a monotonically increasing (at diminishing rate) effect on purchase intentions; and (3) views exhibit a concave curvilinear effect in that, beyond a tipping point, increasing the number of views lowers purchase intentions. Given the anchoring effect of the larger views number, if the number of views or the number bought are relatively low, it is better to show the larger views number, but the reverse is true if the respective numbers are both high. Additional insights reveal that it is only advantageous to reveal both numbers if the views-to-bought ratio is lower than 20:1, which would apply to about the top 25% of brand landing pages. These findings were further validated in a choice experiment. Perceptions of product quality mediate the relationship between these social selling cues and purchase intentions; however, this is not the case for perceived skepticism (lack of trust in the information). Revealing these social selling cues is an online retailer’s prerogative; hence, these insights are theoretically interesting and have practical relevance.     

An equity theory perspective of online group buying

This article presents a purchase equity model for online group buying (OGB) to examine the antecedents and consequences of OGB behavior. The study tests 458 usable responses collected by means of mall-intercept systematic sampling from consumers who had previously participated in OGB against the purchase equity model using structural equation modeling. Drawing from both input constructs (perceived sacrifice and perceived risk) and output constructs (perceived benefit and perceived quality) for equity, the findings support the purchase equity model. The findings show the significance of perceived sacrifice, perceived risk, perceived benefit, and perceived quality on consumer perceptual evaluations of purchase equity in OGB. The results suggest that OGB marketers and site operators should focus on promoting perceived benefits (value for money, good selection of products and services, convenience) and perceived quality (ease of use, aesthetics, prompt processing speed) and implementing measures that reduce consumers’ perceived sacrifice (monetary, time, effort) and perceived risk (security, privacy, purchase redemption, purchase delivery) in OGB.     

Linkages of retailer personality,perceived quality and purchase intention with retailer loyalty: A study of Indian non-food retailing

The present study was an effort to explore the direct and indirect (through retailer perceived quality and purchase intention) impacts of retailer personality on store loyalty. Questionnaire was used to collect data using systematic sampling from non-food retail store shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Multivariate data analysis techniques like structural equation modeling were used to analyze the data. Results supported both the direct and indirect impacts of retailer personality on retailer equity. Interestingly, the extent of indirect impact of retailer personality on retailer loyalty is greater than direct impact. Arguably, this paper is the first to explore the linkages among retailer personality, perceived quality, purchase intention and store loyalty. Academic and managerial implications are further discussed.     

The effects of ad heuristic and systematic cues on consumer brand awareness and purchase intention: Investigating the bias effect of heuristic information processing

With growing numbers of digital users, social media advertising becomes a vital marketing channel for attracting and sustaining consumers. Drawing on the heuristic-systematic model, this research investigates the effects of advertisement systematic cues including ad informativeness and ad persuasiveness, and ad heuristic cue which is ad poster category on the consumer brand awareness, and the sequential effect on consumer purchase intention. An experimental design featuring two categories of ad poster, namely, firm and influencer, is created for empirical evidence collection. Results show that ad informativeness and ad persuasiveness contribute to greater consumer brand awareness and purchase intention. The poster category can positively bias the influence of ad informativeness, and firm poster outperforms the influencer poster when controlling the advertisement content the same. The findings demonstrate the co-occurrence of heuristic and systematic information processing in the social media advertising context. This research deepens current understanding of social media advertising and provides practical implications for marketers to capitalize on different ad posters according to advertisement informativeness and persuasiveness feature.