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Article
Publication date: 9 November 2015

Hsin-Hui Lin

The purpose of this paper is to investigate the effects of three price-matching guarantee (PMG) variables, including refund depth, refund period and competitive scope, on consumer

1364

Abstract

Purpose

The purpose of this paper is to investigate the effects of three price-matching guarantee (PMG) variables, including refund depth, refund period and competitive scope, on consumer response; the moderating role of consumer search costs is also examined.

Design/methodology/approach

This study uses a scenario simulation method with a 2×2×2 factorial design to test the research model and hypotheses.

Findings

The results indicate that refund depth has a significant effect on price perception and purchase intention, while competitive scope has a significant effect on purchase intention. In addition, the effects of both refund depth and competitive scope on price perception are moderated by consumer search costs.

Originality/value

This study is a pioneering effort to explore the effects of PMGs variables on consumer response in the context of online retailing. These findings provide several important theoretical and practical implications for the PMG strategy of online retailing.

Details

Journal of Service Theory and Practice, vol. 25 no. 6
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 14 June 2022

Xiang Gao and Bin Li

Relatively little research explicitly considers how a firm’s channel decisions affect consumer tradeoffs between the cognitive costs of online search and the physical costs of…

Abstract

Purpose

Relatively little research explicitly considers how a firm’s channel decisions affect consumer tradeoffs between the cognitive costs of online search and the physical costs of visiting a retail store. This study aims to argue that opening a new retail store affects both cognitive and physical search costs, but that the magnitude of these effects depends on the location of the consumer relative to the new store. In addition, individual differences in consumers’ cognitive costs that should moderate these effects.

Design/methodology/approach

This study takes the opening of multiple retailer stores on the same day as the nature experiment. Combining with data from other sources, this study tests the hypotheses using conditional logit for the correction of incidental problem in the traditional fix-effect logit model. Endogeneity issue is tested with the control function approach.

Findings

This study finds that opening a new store leads to a 136% increase in the odds of online visiting by consumers who live in the broader metropolitan area of the new store, while it leads to a 43% decrease in the odds of online visiting by consumers who live in the nearby shopping region. However, the effect of store entry on increasing website search is weaker for consumers who are more loyal, and the effect of store entry on decreasing website search is weaker for consumers who are more efficient in searching online.

Originality/value

This study adds to prior research by identifying when, and for which consumers, opening a physical store has complimentary versus substitutive effects on online search behavior.

Details

Nankai Business Review International, vol. 13 no. 4
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 10 October 2016

Shu-Mei Tseng and Meng-Chieh Lee

More and more disputes have quickly emerged and accumulated, hence generating uncertainties and doubts among consumers regarding the online group-buying. In order to decrease such…

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Abstract

Purpose

More and more disputes have quickly emerged and accumulated, hence generating uncertainties and doubts among consumers regarding the online group-buying. In order to decrease such uncertainties, the purpose of this paper is to explore the relationships among information disclosure, trust, reducing search cost, and online group-buying intention, as well as proposing concrete suggestions for enhancing online group-buying intention.

Design/methodology/approach

In order to explore the relationships among information disclosure, trust, reducing search cost, and online group-buying intention, the questionnaire and statistical analytical techniques were used. Moreover, as this study was an early attempt to develop a model for information disclosure, trust, reducing search cost, and online group-buying intention, partial least square therefore was appropriately to analyze data.

Findings

The results showed that the level of information disclosure and trust on a group-buying website have positive influence on reducing search costs, while reducing search costs and trust have positive influences on online group-buying intention.

Research limitations/implications

This research applied a purposive sampling method and obtained a slightly inadequate number of respondents. Therefore, it is suggested that future research should apply a random sampling method to collect more responses and increase the generalizability of the findings.

Practical implications

By more actively disclosing information it is possible for group-buying websites to increase consumer trust and decrease search costs, thus enhancing their group-buying intentions.

Originality/value

There are few studies on the relationships among reducing search cost, trust, and group-buying intention from the perspective of information disclosure. This study thus applies a questionnaire survey method to explore the relationships among them. This study also offers concrete suggestions to enhance group-buying intentions, and provides marketing strategies that can be used by online group-buying websites to raise their sales.

Details

Journal of Enterprise Information Management, vol. 29 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 6 February 2017

Buqing Ma, Xiaoyan Xu, Yanhong Sun and Yiwen Bian

Consumers are increasingly using search-based advertising in e-Business platforms to seek their desirable products. Platforms will choose a centralized advertising mechanism (CAM…

1090

Abstract

Purpose

Consumers are increasingly using search-based advertising in e-Business platforms to seek their desirable products. Platforms will choose a centralized advertising mechanism (CAM) or decentralized advertising mechanism (DAM) to offer a search advertising service to lower consumer search cost, as represented by using search time length. It is important for the platform to decide how to choose advertising mechanisms, and how to determine the optimal advertising price and search time length. To address these issues, this study aims to develop a theoretical approach under each mechanism to examine the platform’s optimal search-based advertising strategy by considering search cost.

Design/methodology/approach

In this study, two models are developed to examine the optimal search-based advertising strategy by considering consumer search cost (i.e. search time length). By comparing the platform’s profits under two models, the optimal advertising strategy, search time length and price are explored.

Findings

It is found that when the seller’s reserve benefit is sufficiently large, the platform benefits from choosing the DAM; otherwise, the CAM is a better choice. The advertising service is usually offered with a shorter search time length accompanied by a higher charge, and a longer search time length accompanied by a lower charge. Specifically, when the seller’s reserve benefit is substantially high, a DAM that benefits both the platform and seller is a better choice. This can explain why many platforms offer advertising services with a DAM.

Originality/value

This paper is the first theoretical study on addressing the search-based advertising strategy, especially the choice of advertising mechanisms, in the online advertising context. It is also the first piece of analytical research that considers the effect of consumer search cost on product demand, and then examines the optimal advertising price and search cost (i.e. search time length) for online platforms.

Details

Kybernetes, vol. 46 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 May 1999

Troy J. Strader and Michael J. Shaw

In this paper we address research issues related to the economics of electronic, Internet‐based markets. First, what are the consumer cost‐based differences for traditional and…

2628

Abstract

In this paper we address research issues related to the economics of electronic, Internet‐based markets. First, what are the consumer cost‐based differences for traditional and electronic markets? Second, what revenue implications does increased electronic market utilization have for sellers and transaction intermediaries? Based on an empirical, survey‐based study of an electronic market in the sports trading card industry we find that prices, search costs, and sales taxes are lower in the electronic markets, while risk costs, distribution costs, and market costs are lower in traditional markets. We discuss the implications this has for seller, intermediary and government revenue sources.

Details

Internet Research, vol. 9 no. 2
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 12 August 2019

Sweta Chaturvedi Thota and Ritwik Kinra

Research demonstrates that individuals display relative thinking – the tendency to consider relative savings rather than just absolute savings in their decisions to search for a…

Abstract

Purpose

Research demonstrates that individuals display relative thinking – the tendency to consider relative savings rather than just absolute savings in their decisions to search for a deal or purchase an item. This paper aims to review empirical and analytical literature on relative thinking, perceived search costs and price savings to propose and test a conceptual model of relative thinking.

Design/methodology/approach

Through two studies, the paper tests whether individuals display relative thinking when shopping across stores vs online and how they perceive search and time spent in pursuing savings. Both studies are adaptations of the classic jacket-and-calculator scenario study (Tversky and Kahneman, 1981).

Findings

Results show attenuation of the robust relative thinking phenomenon over the internet compared to shopping across stores. Individuals exhibit increased price sensitivity for both low and high relative savings conditions on the internet but demonstrate price sensitivity only in the high relative savings condition in the store shopping contexts. Diagnostic measures pertaining to the attractiveness of savings and the perceptions of search costs corroborate the support for relative thinking across stores but not over the internet.

Originality/value

These results lend weight to the central claim in this paper that the internet marks a new boundary condition for the relative thinking phenomenon in marketing literature. Theoretical and managerial implications of the findings, the limitations of the studies and future research opportunities are discussed.

Details

Journal of Consumer Marketing, vol. 36 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

Book part
Publication date: 19 September 2019

Brian T. Ratchford

This chapter presents a summary of the literature on the influence of the Internet and other digital innovations on markets, consumers, and firms. The review leads to a list of…

Abstract

This chapter presents a summary of the literature on the influence of the Internet and other digital innovations on markets, consumers, and firms. The review leads to a list of topics in need of research in the general areas of big data, online and mobile advertising, consumer search, online privacy, online reviews, social networks, platforms for online transactions, and the impact of the Internet on retail markets, including multi-channel and omni-channel retailing. We discuss the big data approaches that have been applied to problems of targeting and positioning and suggest areas for further development of these approaches. We also discuss the emerging area of mobile advertising, which can further enhance targeting. On the consumer side, the evidence indicates that the Internet has greatly lowered the costs of search and access to retailers. Much of the consumer data are transmitted to sellers, and much of the online advertising is transmitted to consumers, through platforms, such as Google. We conclude that better models of competition among these platform firms are needed and that they need to be examined for anti-trust violations. While online retailing has grown rapidly, it still has a relatively small share of retail sales. Since sellers can combine the advantages of online and offline channels, it has been common for sellers to branch into multi-channel retailing. Given the increased availability of detailed consumer data, omni-channel selling, which emphasizes strategies for the various touchpoints that lead to a transaction, is an area for further development.

Details

Marketing in a Digital World
Type: Book
ISBN: 978-1-78756-339-1

Keywords

Article
Publication date: 1 February 1999

Rex Eugene Pereira

Develops and tests a general model for understanding the influence of query‐based decision aids (QBDA) on consumer decision making in the electronic commerce environment. The…

2514

Abstract

Develops and tests a general model for understanding the influence of query‐based decision aids (QBDA) on consumer decision making in the electronic commerce environment. The results show that the use of well‐designed query‐based decision aids leads to increased satisfaction with the decision process and increased confidence in judgements. The number of stages of phased narrowing of the consideration set was higher in the case of subjects who had access to the query‐based decision aids. The mediating variables through which this influence occurs are size of the consideration set, similarity among the alternatives in the consideration set, cognitive decision effort, and perceived cost savings. The size of the consideration set and the similarity among the alternatives in the consideration set were higher in the case of subjects who had access to the query‐based decision aid. Subjects who had access to the query‐based decision aid perceived an increased cost savings and a lower cognitive decision effort associated with the purchase decision. This research is done in the context of consumers searching for information on the World Wide Web prior to the purchase of cars.

Details

Logistics Information Management, vol. 12 no. 1/2
Type: Research Article
ISSN: 0957-6053

Keywords

Book part
Publication date: 1 January 2005

Lan Xia and Kent B. Monroe

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-85724-723-0

Article
Publication date: 3 October 2019

Alberto Sa Vinhas and Douglas Bowman

This study aims to determine the antecedents and consequences of information source choice to support a purchase decision for services high in experience attributes.

Abstract

Purpose

This study aims to determine the antecedents and consequences of information source choice to support a purchase decision for services high in experience attributes.

Design/methodology/approach

The authors conduct two studies to test their propositions. Study 1 is a single-category application using data from a national survey of 974 consumers who recently made a hotel-stay purchase/reservation. Correspondence analysis was used to identify search patterns, and regression analysis was used to identify their antecedents and influence on search outcomes. Study 2 is a cross-category study using data from a survey of 422 MTurk respondents reporting on search processes across six different services contexts, including hotel reservations. In this study, the authors seek generalization of their results to other services categories.

Findings

The authors identify four dimensions that characterize what information sources consumers, on average, use together when purchasing services. It is found that loyalty program membership and consistency in service delivery across a brand’s outlets for the brands in a consumer’s evoked set are important determinants of search patterns. Search patterns partially mediate the impact of consumer characteristics, choice context and choice set characteristics on search effort and, ultimately, on price paid.

Practical implications

An understanding of the factors that are associated with consumers’ choices of information sources and whether these choices are systematically related to search outcomes has implications for market segmentation and for marketers’ initiatives with respect to what information content to emphasize across sources.

Originality/value

The contribution is an understanding of the antecedents and consequences of consumer search patterns – and what information sources consumers tend to use together, considering the diversity of both internet and non-internet sources. There are limited insights in the services literature regarding how the internet impacts information search processes.

1 – 10 of over 42000