Intangibility and Perceived Risk in Online Environments

Product intangibility increases consumers' perception of risk. Previous research has examined the effects of multiple dimensions of intangibility on the various types of risk and found out that of the three intangibility dimensions, physical intangibility was the least correlated to the consumers' perception of risk in most situations, while mental intangibility and generality had great impact on most of the perceived risk dimensions. Little research so far has been conducted as to the differences between online and offline environments in which risk is perceived. The results from this study with generic vs. branded products in offline vs. online situations show that significant variations in the perception of risk were identified across different purchasing environments. In the online environment concerns of consumers have a significantly stronger impact on the different kinds of risk perceived than generality and mental intangibility. Whereas intangibility has a major impact on risk during the traditional method of shopping, an elevated perception of risk in the online environment is merely triggered by consumer's concerns about their privacy, the security of their purchases and the security of the system through which their transactions are completed.     

Brands as substitutes for the need for touch in online shopping

This article addresses the potential of reputable brands to overcome the lack of tangibility that characterizes the process of e-commerce through an experiment-based analysis. In a sequential argument, the authors propose that (1) the brand becomes more important in online than in offline channels, as a consequence of the intangibility or lack of physical contact in online purchasing processes; (2) the limitations associated with the need for touch and the lack of access to the physical product during the buying process does not have equal importance across all product categories and (3) the role of the brand in online channels thus is more relevant if the product category is associated with a higher need for touch. The study based on the experimental design reveals that leading brands enjoy an advanta in consumers' quality assessments, regardless of the objective attributes that characterize the products. This advantage may be greater in online channels, though only for product categories for which the lack of physical contact with the product during the purchase process is an important limitation. In such cases, brand associations can compensate for intangibility during purchase.     

Promises,Promises: How Consumers Respond to Warranties in Internet Retailing

Past studies have shown that perceived risk is a critical determinant of purchase intention in non–store retailing contexts, including Internet retailing. Extant literature in physical retailing suggests that warranties can be a significant variable in reducing consumers’ perceived risk. We examine the role of Web site warranties in risk reduction and how warranty information interacts with retailer reputation and brand name as two other risk relievers in an online shopping environment. Results suggest that warranties can make a positive difference for online retailers with strong reputations with respect to perceived risk, perceived product quality, and purchase intentions. However, consumers are less influenced by warranty information when dealing with online retailers with weak reputations. For the other extrinsic cue, however, we find that warranty information does not have an effect when dealing with brand names, suggesting that a brand name’s impact on online risk reduction remains regardless of the presence of warranty information.     

The determinants of Women's redemption of geo-targeted m-coupons

This research has two objectives. First, it examines the determinants and consequences of attitude toward geo-targeted mobile coupons (hereafter, m-coupon). Second, it studies the effect of coupon value and store brand preference on women's intention of visiting a store and redeeming geo-targeted m-coupons. Using a scenario method and an online questionnaire, data are collected from 693 women students. The results support the influence of fear of spam on m-coupon usefulness, perceived privacy risks, m-coupon proneness, ease of use, and perceived product utility. The findings also confirm the effects of perceived usefulness of m-coupons, perceived privacy risk, m-coupon proneness, perceived ease of use, and perceived product utility on women's attitudes toward fashion-related m-coupons. In turn, attitude influences intention of visiting the store and intention of redeeming the m-coupon. M-coupon value and store brand preference significantly affect intentions of redeeming the m-coupon and visiting the store.     

Increasing customer purchase intention through product return policies: The pivotal impacts of retailer brand familiarity and product categories

This study gauges customer perspectives to investigate how return policy generosity (the degree to which a retailer imposes minimal restrictions on returns) influences customer-perceived value and customer purchase intention. It also examines two moderators, retailer brand familiarity (the extent to which the retailer brand is well-known) and product categories (the difference between products with respect to the magnitude of effort required to make a return). An experiment with a 2 × 2 × 2 factorial design was conducted. The results show that return policy generosity increases customer purchase intention by enhancing the perceived value of the policy. Lesser-known retailers benefit more from generous return policies than their well-known competitors, particularly when a product requires significant return effort. Well-known retailers benefit from offering generous return policies only for product categories that involve low levels of return effort. The findings of this study suggest that if a retailer formulates a return policy without considering the moderating effects of retailer brand familiarity and product category, then it will tend to over-invest if the return policy is generous.     

The role of customization,brand trust,and privacy concerns in advergaming

This study investigates the effects of advergame customization features and trust in the brand advertised in the advergame on players’ brand attitude and personal information disclosure. Moreover, we examine to what extent players’ privacy concerns moderate these effects. Drawing on self-determination theory and uncertainty reduction theory, we developed and tested a game with varying levels of customization features and brand trust. Results show that customization possibilities and brand trust may have a positive influence on advergame persuasion outcomes, but this influence is strongly conditioned by consumers’ privacy concerns. When privacy concerns are low, a game containing customization features leads to a more positive brand attitude. However, when privacy concerns are high, the effect becomes negative. Additionally, we find that different levels of privacy concerns do not affect players’ responses toward high trust brands, but toward low trust brands. For low trust brands, players with high privacy concerns show more negative game responses than players with low concerns. These findings set the boundaries for several theoretical and practical implications regarding advergame effectiveness.     

Conveying Trustworthiness to Online Consumers: Reactions to Consensus, Physical Store Presence, Brand Familiarity, and Generalized Suspicion

Etailers have been losing market share to brick and mortar retailers that also sell products online. Two related studies investigate means by which etailers can convey trustworthiness to consumers and thereby increase purchase intentions relative to hybrid firms. Study 1 examines whether consensus information (i.e., the extent of satisfaction agreement among previous customers) and brand familiarity exert independent or interactive effects on consumer perceptions across retailers that possess, or lack, a physical presence. Study 2 tests a potential boundary condition of the effects of consensus information and brand familiarity by introducing generalized suspicion, which is a common condition for online buyers. Results suggest that consensus information provides a broad cue that conveys trustworthiness and leads to greater purchase intentions for both familiar and unfamiliar brands, as well as hybrid and etailer firms. In comparison, the effects of physical presence and brand familiarity were somewhat narrower in scope. However, we find that consensus information alone is not sufficient to buffer against active, generalized suspicions online. Instead, a combination of high consensus and brand familiarity is necessary for this purpose. The paper concludes with recommendations on how etailers can convey trustworthiness in online exchanges and how future research can build upon these findings.     

Classifying Services by Tangibility/Intangibility of Attributes and Benefits

ABSTRACT

This study involved two primary objectives. First, since no multi-item measure of perceived tangibility/intangibility of service offerings has emerged in the services literature, one is proposed. Second, the measure is used to classify service offerings according to the level of perceived tangibility/intangibility of their salient attributes and desired benefits. The resulting services taxonomy is intended to help guide services marketers with their positioning and promotional decisions relating to the need for overcoming the problem of service intangibility.     

消费者对网上购物的风险认知及影响因素

风险认知是影响消费者网上购物的重要因素。网上购物的风险,主要包括财务风险、性能风险、身体风险、时间风险、隐私风险、心理风险和社会风险等维度。影响消费者网上购物风险认知的因素,主要有网络使用经验、网上购物经历、产品知识、创新性等。采取一些适当的措施,可以有效地降低网上购物的风险认知。     

Prepurchase Determinants of Brand Avoidance: The Moderating Role of Country-of-Origin Familiarity

ABSTRACT

This report provides an overview of the concept of prepurchase brand avoidance, by identifying the motivating factors in a developing nation. Additionally, the authors aim to explain the negative effect of country-of-origin familiarity leading to brand avoidance. Relationships between constructs (undesired self, negative social influence, perceived animosity, and perceived risk) were hypothesized and data were collected via an online survey, where 286 respondents provided an evaluation for the brands they avoided. Hypotheses were tested using structural equation modeling via AMOS. To date, anti-consumption studies have taken place in developed countries where high agency and abundant choice enable brand avoidance to occur; the authors find that brand avoidance also exists in developing countries, and for all categories of brands, undesired self-congruence is the key determinant for prepurchase brand avoidance. The study did not use any particular product categories. Results need to be expanded and confirmed with other product categories in other emergent markets. Developing nations constitute the fastest growing markets in the world, and knowledge of the factors motivating brand avoidance in these contexts are a competitive advantage (e.g., undesired self is one important variable to focus on to make brands acceptable in such markets). This report provides new insights into consumer judgments of prepurchase brand avoidance in an emerging market.     

Category characteristics' effects on brand extension attitudes: A research note

Prior studies on attitudes towards brand extensions focus mainly on the effects of the perceived fit between the brand extension and the extension category. This exploratory paper contributes by describing two studies of how the following four extension category characteristics affect consumers' attitudes towards brand extensions: (1) the awareness set size; (2) the perceived similarity among existing brands; (3) the perceived category familiarity; and (4) overall category attitudes. Results from two studies suggest that consumers evaluate brand extensions more favorably when the awareness set size is small or when their attitude towards the extension category is favorable. Consequently, brand managers must analyze the extension category carefully when developing brand extensions.     

The role of product brand image and online store image on perceived risks and online purchase intentions for apparel

Purchase intentions for apparel products often require physical examination prior to purchase. Hence, greater risk is associated with shopping online for apparel products, making it important to examine factors that reduce various risks influencing online purchase intentions. This study examines and compares the impact of two of the most important risk reducers for online apparel shopping – product brand image and online store image – on specific types of perceived risks and online purchase intentions for apparel. The results show that product brand image influences consumers' online purchase intentions both directly and indirectly by reducing various risk perceptions. Online store image impacts purchase intentions indirectly by decreasing risk perceptions. The results of this study provide fresh insight into understanding the impact of product brand image and online store image on each type of perceived risk associated with online shopping.     

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.     

Consumer Perceptions of Privacy and Security Risks for Online Shopping

Government and industry organizations have declared information privacy and security to be major obstacles in the development of consumer‐related e‐commerce. Risk perceptions regarding Internet privacy and security have been identified as issues for both new and experienced users of Internet technology. This paper explores risk perceptions among consumers of varying levels of Internet experience and how these perceptions relate to online shopping activity. Findings provide evidence of hypothesized relationships among consumers’ levels of Internet experience, the use of alternate remote purchasing methods (such as telephone and mail‐order shopping), the perceived risks of online shopping, and online purchasing activity. Implications for online commerce and consumer welfare are discussed.     

When goliaths win and davids lose: The moderating role of perceived risk in brand biography effects

Brand biographies trace a brand's evolution to position it as an underdog (i.e., passion and determination that lead to success despite limited resources) or a topdog (i.e., success based on abundance of resources) brand. This study examines how consumers’ risk perceptions associated with brand choice influence brand biography effects. It demonstrates that when perceived risk associated with brand choice is low, consumers process brand biographies narratively, experience greater narrative transportation into underdog (vs. topdog) brand biographies, and evaluate the underdog brand more favorably. When perceived risk associated with brand choice is high, consumers respond more positively to topdog (vs. underdog) brand biographies, due to topdog brands’ greater perceived ability to reduce risk. The topdog effect observed at higher levels of perceived risk reverses, however, when consumers have the opportunity to process the brand biography before receiving high risk information, as this allows for narrative transportation into the brand biography. This study contributes to research on moderators of brand biography effects and suggests that perceived risk should play a role in marketers’ decision to emphasize underdog or topdog characteristics in brand biographies.     

If all their products seem the same,all the parts within a product seem the same too: How brand homogeneity polarizes product experiences

Many different factors affect brand homogeneity, including the different products associated with a brand, how they are made, and how they are branded. How does the perceived homogeneity of a brand’s offered products, in turn, affect consumers’ experiences with those products? Nine experiments reveal that consumers have more polarized judgments of product experiences when the sampled products are perceived to belong to more homogeneous brands. When a consumption experience is positive, the consumer has an even more positive experience when they think the sampled product came from a homogeneous brand; however, when a consumption experience is negative, the consumer has an even more negative experience when they think the sampled product came from a homogeneous brand. This polarization occurs because the individual product inherits the brand-level quality of perceived internal consistency—when a brand seems homogeneous (i.e., consisting of homogeneous products), consumers also perceive any individual product from the brand as similarly consisting of homogeneous ingredients or parts. We suggest that brand homogeneity leads to selective processing of individual product experiences, which makes products seem more coherent, products rated faster, and ratings of different product ingredients or features more highly correlated. The perception that all of the parts within the individual sampled product are homogeneous in quality polarizes judgments of the product experience.     

Consumer trust in the online retail context: Exploring the antecedents and consequences

This empirical paper explores the antecedents and consequences of trust in the online retail context and examines the moderating role of consumers' familiarity with a Web site in the relationship between Web site quality and trust. Data were collected with an online questionnaire. The research highlights the importance of the Web site interface in consumer online behavior by systematically examining how different quality features affect consumer trust. A multidimensional view of Web site quality with the following dimensions is developed: Web site usability, security and privacy assurance, and product information quality. Trust is shown to lead to positive consequences, such as the formation of positive attitudes and behavioral intentions toward the Web site. The study also identifies the moderating role of Web site familiarity in the relationships between aspects of Web site quality and trust. The implications for e‐retailers in terms of Web site design and marketing communications strategy are explored. © 2010 Wiley Periodicals, Inc.     

Why Consumers Hesitate to Shop Online: Perceived Risk and Product Involvement on Taobao.com

Heralded as one of the fastest-growing regions in e-commerce sales, Asia has received increasing attention from online retailers as a promising e-commerce market. Therefore, to provide better insight into Asian online marketplaces, this study focuses on Taobao.com (hereafter referred to as “Taobao”), a major Chinese online marketplace, and attempts to shed light on consumers’ perceptions of Taobao. More specifically, this study examines (a) what consumers in China think about Taobao as an online marketplace when purchasing high- or low-involvement products; (b) what types of risk are associated with each product; and (c) how online consumers’ risk perceptions consequently influence both their trust toward Taobao and their purchase intention. Multidimensional perceived risks (financial, privacy, product, security, social/psychological, time) were considered in the research. Participants were 217 Chinese university students. The results indicate that product risk and social/psychological risk were negatively associated with consumers’ trust and purchase intention, regardless of their degree of product involvement. Interestingly, financial risk was positively related to trust and purchase intention. Findings are discussed with managerial implications, followed by limitations and future studies.     

The differential roles of brand credibility and brand prestige in consumer brand choice

This study explores how brand credibility and brand prestige affect brand purchase intention and empirically investigates how the combinatory mechanism of brand credibility and brand prestige materialize across multiple product categories. The proposed model of six latent constructs is tested with structural equation modeling analysis: brand credibility, brand prestige, perceived quality, information costs saved, perceived risk, and brand purchase intention. The results suggest that both brand credibility and brand prestige positively influence brand purchase intention through perceived quality, information costs saved, and perceived risk under different product categories representing the high and low self‐expressive nature. Several implications for advertising messages and brand positioning strategies are discussed. © 2010 Wiley Periodicals, Inc.     

Reducing uninformed responses: The effects of product‐class familiarity and measuring brand knowledge on surveys

Consumers often give answers to survey questions about which they are uninformed. Although research has documented this phenomenon and examined the conditions under which it occurs, the current research project is the first to examine how survey researchers might reduce uninformed response bias through the use of additional questions added to surveys that measure knowledge of brands for which consumers might be uninformed. In the current study, adding brand knowledge questions pertaining to an unknown (fictitious) brand reduced the likelihood of respondents providing uninformed responses when later asked to evaluate that brand. However, the effects of asking for brand familiarity on uninformed response rates differed by consumers' level of product‐class familiarity and the relative placement of the brand knowledge and brand attitude questions on the survey. Brand knowledge questions can suggest the existence of brands, placing them within a knowledge schema, thus leading to more uninformed responses from consumers low in product‐class familiarity. These results, coupled with recent other research findings suggest that researchers must consider the effects of related knowledge on what have been previously considered completely uninformed responses. © 2007 Wiley Periodicals, Inc.