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Article
Publication date: 5 February 2024

Yong Liu, Chang-Xue Lin and Gang Zhao

The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on…

Abstract

Purpose

The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism.

Design/methodology/approach

To deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism.

Findings

The results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee.

Originality/value

The proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 6 February 2024

Maria Petrescu, John Gironda and Kathleen Bay O'Leary

This paper aims to evaluate and structure the basic heuristics consumers use in evaluating word-of-mouth (WOM) about luxury hotel brands while analyzing the impact of deception in…

Abstract

Purpose

This paper aims to evaluate and structure the basic heuristics consumers use in evaluating word-of-mouth (WOM) about luxury hotel brands while analyzing the impact of deception in online consumer reviews.

Design/methodology/approach

The research used a two-study mixed-methods approach, using interpersonal deception theory and social proof theory as lenses to conduct our analysis. For the first study, a qualitative conceptual mapping analysis was conducted, examining online consumer reviews to identify key concepts and their relationships in the context of luxury hotel brands. In the second study, the themes were further examined using a fuzzy-set qualitative comparative analysis to analyze their causal complexity and association between variables to determine how they influence the perceived helpfulness of online reviews for luxury hotel brands.

Findings

The results underline the importance of functional, objective variables, such as the number of reviews and stars, as social proof heuristics and other factors, including clout, authenticity and analytic tone, as interpersonal communication heuristics. Therefore, consumers use a combination of social and interpersonal communication heuristics to extract information from reviews and manage deception risk.

Research limitations/implications

The paper contributes to the consumer–brand relationship literature by assessing the heuristics consumers use in evaluating online reviews and provides additional information for research in online reputation management.

Practical implications

This study’s results can help marketing practitioners and brand managers manage their online reputations better. It can also aid managers in improving their messaging on hotel websites to entice consumers to complete bookings. Heuristics play an essential role in such messaging and understanding them can help marketers appeal directly to their target market.

Originality/value

This study contributes to the literature on consumer–brand relationships by providing a framework of heuristics that consumers use when evaluating luxury service brands and contributes to WOM and online reputation research by highlighting factors that may make online reviews more helpful.

Details

Journal of Product & Brand Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1061-0421

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

Book part
Publication date: 8 August 2015

Donald F. Kuratko, Travis J. Brown and Marcus Wadell

In e-commerce, consumers have begun to rely on the opinions of fellow consumers who posted through online consumer reviews to a reputation management system. An ethical concern…

Abstract

In e-commerce, consumers have begun to rely on the opinions of fellow consumers who posted through online consumer reviews to a reputation management system. An ethical concern has arisen in the use and abuse of these new systems. We examine the underlying ethical issues that entrepreneurs are confronting in this time of surging e-commerce. Using 32 vignettes, one for each cross-section of our research construct framework, followed by two Likert scales for respondents to indicate their agreement with the action described from both the perspective of ethicality and professional acceptability, we received responses for 1,252 vignettes, which generated a dataset of 2,504 data points. The results of our pilot study suggest that the ethical considerations for business professionals conducting business online are more nuanced and complex than conventional wisdom on the subject might suggest. While 60 research subjects are small, the use of paired vignettes in our survey allowed us to measure at least 1,000 paired responses for each research construct. The results have the potential of revealing how young professionals have been conditioned by the prevalence of web-based interactions and the anonymity they afford participants, as well as the degree to which they rationalize the misrepresentation of information by business professionals for the purpose of manipulating consumers’ purchasing decisions in order to drive sales. If consumers’ trust in reputation management systems erodes, the result could be a collapse of the entire system as a meaningful source of information. We also demonstrate the tolerance of what is deemed ethical versus professionally acceptable with online business practices.

Details

The Challenges of Ethics and Entrepreneurship in the Global Environment
Type: Book
ISBN: 978-1-78441-950-9

Keywords

Book part
Publication date: 19 September 2019

Sergio Román, Isabel P. Riquelme and Dawn Iacobucci

In this chapter, we introduce a new construct we call “Perceived Deception in Online Consumer Reviews” (PDOCR). Online reviews of products are very important to companies and…

Abstract

In this chapter, we introduce a new construct we call “Perceived Deception in Online Consumer Reviews” (PDOCR). Online reviews of products are very important to companies and customers, yet they are vulnerable to unethical representations. Even regardless of whether a deceptive review has been posted or not, we take the position that it is important to understand consumers’ perceptions of deception because it is a consumer’s perception that leads him or her to experience subsequent feelings and opinions and to consider follow-up actions. We draw on the literature and build on the Elaboration Likelihood Model and Cognitive Dissonance Theory to create an overarching framework of antecedents of PDOCR, consequences, and moderators. We also report findings from a sample of in-depth interviews with real consumers about their thoughts on these phenomena and related constructs. We use our framework and theories and the qualitative data to derive Research Questions that we hope will spur future research on these important issues.

Article
Publication date: 9 October 2023

Xiaoguang Wang, Yue Cheng, Tao Lv and Rongjiang Cai

The authors hope to filter valuable information from online reviews, obtain objective and accurate information about the demands of auto consumers and help auto companies develop…

Abstract

Purpose

The authors hope to filter valuable information from online reviews, obtain objective and accurate information about the demands of auto consumers and help auto companies develop more reasonable production and marketing strategies for healthy and sustainable development. This paper aims to discuss the aforementioned objectives.

Design/methodology/approach

The authors collected review data from online automotive forums and generated a corpus after pre-processing. Then, the authors extracted consumer demands and topics using the LDA model. Finally, the authors used a trained Word2vec tool to extend the consumer demand topics.

Findings

Different types of vehicle consumers have the same demands, such as “Space,” “Power Performance,” and “Brand Comparison,” and distinct demands, such as “Appearance,” “Safety,” “Service,” and “New Energy Features”; consumers who buy new energy vehicles are still accustomed to comparing with the brands or models of fuel vehicles; new energy vehicles consumers pay more attention to services and service quality during the purchasing and using process.

Research limitations/implications

The development time of new energy vehicles is relatively short, with some models being available for only one year or even six months. The smaller amount of available data may impact the applicability of topic models. The sample size, especially for new energy vehicles, needs to be increased to improve the general applicability of topic models further.

Practical implications

First, this measure helps online review websites improve their existing review publication mechanisms, enhance the overall quality of online review content, increase user traffic and promote the healthy development of online review websites. Second, this allows for timely adjustments in future product production and sales plans and further enhances automotive companies' ability to leverage online reviews for Internet marketing.

Originality/value

The authors have improved the accuracy and stability of the fused topic model, providing a scientific and efficient research tool for multi-dimensional topic mining of online reviews. With the help of research results, consumers can more easily understand the discussion topics and thus filter out valuable reference information. As a result, automotive companies may gain information about consumer demands and product quality feedback and thus quickly adjust production and marketing strategies to increase sales and market share.

Details

Marketing Intelligence & Planning, vol. 41 no. 8
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 31 October 2023

Tri Lam, Jon Heales and Nicole Hartley

The continuing development of digital technologies creates expanding opportunities for information transparency. Consumers use social media to provide online reviews that are…

Abstract

Purpose

The continuing development of digital technologies creates expanding opportunities for information transparency. Consumers use social media to provide online reviews that are focused on changing levels of consumer trust. This study examines the effect of perceived risk that prompts consumers to search for online reviews in the context of food safety.

Design/methodology/approach

Commitment-trust theory forms the theoretical lens to model changes in consumer trust resulting from online reviews. Consumer-based questionnaire surveys collected data to test the structural model, using structural equation modelling (SEM).

Findings

The findings show when consumers perceive high levels of risk, they use social media to obtain additional product-related information. The objective, unanimous, evidential and noticeable online reviews are perceived as informative to consumers. Perceived informativeness of positive online reviews is found to increase consumers trust and, in turn, increase their purchase intentions.

Originality/value

The findings contribute to the knowledge of online review-based trust literature and provide far-reaching implications for information system (IS)-practitioners in business.

Details

Aslib Journal of Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-3806

Keywords

Article
Publication date: 8 June 2023

Salahuddin Ahmed, Sapna Singh and Nagaraj Samala

Online brand is becoming a popular and major gateway for consumers for booking various services specifically when they travel for several purposes. The present study aims to…

Abstract

Purpose

Online brand is becoming a popular and major gateway for consumers for booking various services specifically when they travel for several purposes. The present study aims to explore whether exposure to two separate yet similar modes of communication intervene consumer's brand trust and their subsequent loyalty intention toward the brand. The study further aims to investigate whether consumer's price consciousness has any influence on association between brand trust and brand loyalty in the process of decision -making.

Design/methodology/approach

The present study follows a different approach to data collection. The data have been retrieved from online brand (Oyo) page on Facebook through Google Form application. In all, 289 useable responses were retrieved from the travelers aged between 18 and 30. Structural equation modeling using SPSS 25.0 and Amos 26.0 has been applied to examine the effects of brand communication and online reviews on brand loyalty through brand trust.

Findings

Empirical evidence supports that even after having strong brand communication, online reviews play a crucial role in consumer's brand loyalty through brand trust. The study further reveals that price consciousness acts as a significant moderator in the relationship between consumer's brand trust and brand loyalty.

Practical implications

The current research contributes to the online brand and marketing knowledge by empirically showing the pertinence of consumer–brand relationship in an online brand context through a parsimonious model by examining how the two distinct mechanisms of communication influences consumer brand trust and loyalty intention.

Originality/value

The parsimonious framework of consumer–brand relationship adds to explicating the dual marketing challenges of communication and to draw a positive consumer response (i.e. consumer brand loyalty). The study attempts to examine the impact of two distinct yet identical modes of communication which facilitate shaping consumer brand trust that reinforce the strategic value of the circumstance and equips it with solid theoretical structure within an endeavor of the strategic significance of online brand managers.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 27 July 2023

Antonio S. Williams, Yoon Heo, Jun Woo Choi, Zack P. Pedersen and Kevin K. Byon

This study aims to explore the use of consumer-generated online product reviews as a source of brand associations in a sport setting.

Abstract

Purpose

This study aims to explore the use of consumer-generated online product reviews as a source of brand associations in a sport setting.

Design/methodology/approach

A total of 800 reviews were collected and categorized into 13 brand association dimensions derived from previous literature. Reviews were further categorized into three valence types (i.e. positive, negative and neutral) via a correspondence analysis.

Findings

A correspondence analysis revealed that positive product reviews were highly linked to performance and product-related attributes, while negative reviews were related to conformance associations. Additionally, the results showed that product-related (90.8%) attributes, experiential benefits (89.1%) and functional benefits (86.6%) were the most frequently communicated brand associations. The findings of this study underline the credibility of assessing brand associations from the consumers’ experience, through online consumer reviews.

Originality/value

The findings of the current investigation contribute to existing knowledge by examining consumer-based brand equity (CBBE) in an online setting. Previous, CBBE literature suggests that brand associations are held in the minds of the brand's consumers. To date, however, few studies have examined brand associations generated by consumers and instead have relied upon brand association dimensions developed by the researcher as opposed to the consumer (Ross et al., 2006). This, study however, utilized online sport product reviews as a source of consumer derived brand associations, and, therefore, will further the knowledge as to how brand associations are identified and measured.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 5
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 16 March 2023

ZiQiang Wu, Eugene Cheng-Xi Aw and Stephanie Hui-Wen Chuah

Webrooming (i.e. searching information online and making the final purchase in a physical store) has become a popular shopping practice, but remains insufficiently studied. To…

Abstract

Purpose

Webrooming (i.e. searching information online and making the final purchase in a physical store) has become a popular shopping practice, but remains insufficiently studied. To address this, a research framework encompassing online and offline channel attributes (i.e. online review diagnosticity, online search convenience, expected price loss, offline purchase effort and offline after-sales service convenience), consumer traits (i.e. anticipated regret) and shopping experience (i.e. smart-shopping perception) as determinants of webrooming continuance intention is proposed.

Design/methodology/approach

The proposed model was validated by conducting a questionnaire-based survey that yielded 354 useable responses. The data was subjected to partial least squares structural equation modelling and importance-performance map analysis.

Findings

According to the obtained results, online review diagnosticity, offline after-sales service convenience and anticipated regret are the vital antecedents of webrooming continuance intention, while smart-shopping perception acts as the mediator.

Originality/value

The current study adds significantly to the body of knowledge about webrooming by validating the inter-relationships between online review diagnosticity, after-sales service convenience, anticipated regret, smart-shopping perception and webrooming continuance intention.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

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