High or low initial setting price?: Initial setting price as prediction of intention to bid in on line auctions

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economic

Consumer Herding Behavior in Online Buying: A Literature Review

The purpose of this review paper is to present the application of herding behavior in online buying. The simplest description of herding behavior is the imitation of others in making decisions. Online buying platforms have facilitated observing others' buying behavior, thereby increasing possibilities of social influence on our information search, evaluation, and buying. The concept of herding is multi-disciplinary; however, the literature review on herding behavior is mainly grounded in economics and finance. There is little understanding of herding behavior in marketing literature. Therefore, this study covers herding behavior literature through high-quality research papers published from 2000 to 2020 in journals indexed in the social science citation index, science citation index expanded, and emerging source citation index. This paper discusses the conceptualization of herding in online buying, herding situations, information-processing view of herding, measuring herding effect, herding models and theories, and areas for future research to enrich herding literature in online buying. This paper proposes a herding model (HCMMD) based on the stimulus-organism-response (SOR) theory to study herding behavio

TWO ESSAYS ON INTERFACE DESIGNS IN COLLABORATIVE AND SOCIAL E-COMMERCE

Ph.DDOCTOR OF PHILOSOPH

Decision-making and the role of feedback in complex tasks

This thesis investigates the process of decision-making in relation to complex tasks and considers the important role which dynamic information and real-time feedback play in shaping response behaviour and adaptation within such environments. Through empirical studies, the thesis explores the extent to which decision-makers can be said to act rationally when challenged by complex decision-making environments. Evidence relating to demand for information and the impact of feedback on behaviour is provided with two studies: The first uses a simulated auction platform to examine behaviour within overlapping auctions of short duration with close-to-identical items and minimal participation costs. Mouse tracking is used to capture data on relevant interactions of participants with the simulated online platform, including switching behaviour independent of bidding. The resulting data suggests that participants did behave in a manner consistent with utility maximisation, seeking to acquire the item at the lowest possible price and showing no bias in terms of auction preference. The impact of fixed-price offers in the form of a “Buy it Now” option is also examined with some evidence that participants again seek, and respond to, current information when deciding on their bidding strategy. The second study is a test of the impact of real-time feedback and demand for information within the context of financial markets. The study again uses a novel simulated environment which provides access to considerable amounts of relevant data which participants can choose to access. In addition, participants are exposed to regular feedback with regard to their own performance. Overall, demand for information is found to be dependent upon the type of feedback received and its context. Decision-makers then appear to behave objectively, apparently seeking the latest available information to support current decisions, although investor style is found to be important in determining overall trading propensity. The thesis starts by considering a number of the foundations and pathways which run through the judgment and decision-making literature. It is not a complete description, review or analysis of all of the prevailing lines of enquiry. Nevertheless, it seeks to achieve coherence in terms of bringing together some of the key themes dealing with risky choice under conditions of uncertainty and ambiguity. The field of judgment and decision-making is inevitably vast; its scope owing much to the fact that it transcends individual disciplines. The emergent behavioural sciences thus draw together important strands from various sources, notably Economics and Finance. In many areas, psychological traits can be applied to explain inconsistencies which are found in classical theory of rational behaviour. The recognition of behavioural traits has thus contributed greatly to the evolution of decisionmaking theories under conditions of uncertainty and ambiguity which are, in many cases, substantially more adaptable and robust than early normative theories of rational behaviour. The classical approach to rational decision making within Economics, together with some theoretical and empirical challenges to it, are considered in Chapter 1. It is here that we are introduced to the Rational Man. Like the mythical creatures found in Classical Antiquity, the Rational Man does not actually exist in the real world; he is nevertheless central to the concept of utility maximising rational choice which provided much of the foundation of Economics. Developments of expected utility theory (EUT) are considered, including its replacement of expected value, and the formalisation of rational behaviour within the context of axioms. When those logical axioms apply, decision-makers can be said to behave 'as if' they are utility maximises. The chapter ends with some empirical evidence, showing the types of approaches often used to explore rational decision-making. Some violations of EUT are explored, both in relation to notional gambles and consistency with regard to revealed preferences. Chapter 2 extends the narrative by considering rational decision-making in cases where there is no objective information about possible outcomes. Subjective utility theory (SEU) is then introduced, describing objective functions based upon preferences derived from combined utility and probability functions. The implications of the Allais’ and Ellsberg paradoxes are discussed, along with some possible solutions. It is here that we explore the concepts of uncertainty and ambiguity in more details and consider some theoretical formulations for addressing them. Chapter 3 covers the significant contribution to decision-making under conditions of uncertainty provided by Prospect Theory and, later, Cumulative Prospect Theory (CPT). Their evolution from the pioneering work of Markowitz is discussed within the context of reference points relative to which outcomes can be evaluated. The significance of stochastic dominance and rank dependence are explored. By this stage, we have examined numerous theories which have fundamentally transformed standard EUT into much more flexible and adaptable frameworks of rational choice. The core concepts of utility maximisation remain yet the initial, strictly concave utility function describing diminishing marginal utility is now substantially replaced by more complex weighted preference functions. From this theoretical base, the process of choice reduction and the application of heuristics in decision-making are considered. We again describe axiomatic behaviour compatible with rational choice. Therefore, decision-makers faced with multiple choices about which there may be little or no objective information about likely outcomes can nevertheless develop rational beliefs and expectations which can then be applied to reduce complex tasks to more manageable proportions. As well as considering these aspects from the point of view of actual choices, we also consider the processes by which decisions are taken. Thus, process tracing methods are introduced into the discussion. The chapter also explicitly considers the role of feedback in decision making. This includes a consideration of Bayesian inference as a process for updating probabilistic expectations subject to new information. From considering theoretical formulations form which we can judge rational behaviour, Chapter 5 looks at evidence for sub-optimal decision-making and bias. Bias with regard to probability assessments are considered along with empirical evidence of bias in relation to intertemporal discounting. Sunk cost bias is also considered as a clear example of irrational behaviour, leading in to a specific discussion about a number of persistent behavioural biases identified within financial markets. As an introduction to later chapters, this also covers the basic theoretical principles of market efficiency and evidence that real markets fail to adhere to those principles in important ways. Chapters 6 and 8 describe the empirical studies with Chapter 7 providing a more detailed introduction to the financial markets experiment, considering aspects of market efficiency, models of behaviour and other empirical evidence

Effects of Online Consumer Reviews on Attitudes and Behavioral Intentions toward Products and Retailers

The purpose of this dissertation is to examine the role of consumer reviews in consumers’ decision making process. The current study aims to help researchers and practitioners understand how consumers process different type of information in online consumer reviews. The specific research objectives are to examine (1) how different type of online consumer reviews influence consumers’ responses toward the reviews (2) how different types of individual characteristics influence consumer processing of the content of the reviews, and (3) how consumers’ responses evoked by review content affect consumer attitudes and behavioral intentions toward the reviewed products and retailers. This study addressed two aspects of review-type: (1) type of product information in online consumer reviews (attribute-and-benefits reviews vs. benefits-only reviews), and (2) type of personal information disclosed by the reviewers (reviewers’ personal information vs. reviewer stories). The literature reviews guided the development of hypotheses and the model of the study in an online apparel store context. To test the hypotheses, this study employs an online experiment with a mock website. A total of 425 participants collected from consumer panels of marketing research firm were used for the analyses. The analyses revealed that reviews containing reviewers’ consumption stories, compared to those containing reviewer information, produce more positive thoughts, greater perceptions of reviews’ informativeness, and more favorable attitudes toward the reviews. Contradicting the predictions, there was no moderating effect of individual differences in chronic tendency to enjoy thinking and engage in thinking. Participants’ responses evoked by the reviews showed positive relationships with their attitudes and behavioral intentions toward the reviewed product and the retailer. Further discussion about the results, implications, and suggestions for future research are provided

Emotions in auctions: When and why bidders overbid

The objective of this thesis is to identify situations in which bidders overbid in auctions and to explain overbidding behavior with emotionally motivated bidding behavior. The specific challenge is to identify the comprehensive range of types of emotions that influence bidding behavior based on approaches in emotional psychology. A standard procedure is developed to discuss emotions in auctions and to identify emotional pattern. A special focus is on the design of experiments with real goods

The end of stigma? Understanding the dynamics of legitimisation in the context of TV series consumption

This research contributes to prior work on stigmatisation by looking at stigmatisation and legitimisation as social processes in the context of TV series consumption. Using in-depth interviews, we show that the dynamics of legitimisation are complex and accompanied by the reproduction of existing stigmas and creation of new stigmas

What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions

The drivers of the valuations of entrepreneurial ventures are an important issue in entrepreneurial finance, but related research is fragmented. The theoretical perspectives and the drivers highlighted by previous studies differ based on the financial milestones during a venture's lifecycle in which the valuation is performed (e.g., venture capital investments, initial public offerings, acquisitions). The introduction of new digital financing channels (e.g., crowdfunding, initial coin offerings) that allow retail investors to directly invest in entrepreneurial ventures challenge our understanding of the drivers of valuation. This change has also increased the diversity in the sequence of financial milestones that ventures go through, with important implications for valuation. We conduct a systematic literature review and develop a map highlighting how and why the drivers of venture valuations and their underlying theoretical lenses vary across the different milestones that ventures go through. The map allows us to outline new promising avenues for future research.Plain English Summary In this paper, we conduct a systematic literature review on entrepreneurial ventures' valuation drivers and their underlying theoretical lenses, highlighting how and why they vary along firms' life cycle. The valuation of entrepreneurial ventures is a challenging task for practitioners and a relevant issue that attracts the attention of scholars in entrepreneurship, finance, management, and economics. The literature on the topic is highly fragmented. Indeed, the context in which venture valuations are observed (e.g., in private deals or public offerings) differs across different financial milestones. The introduction of new digital financing channels (e.g., crowdfunding, initial coin offerings) and the increased diversity in the sequence of financial milestones that ventures go through further challenge our understanding of valuation drivers. This study is primarily aimed at scholars, offering them a map to create order in what we know about the drivers of entrepreneurial venture valuations and indicating promising avenues for future research

The gold rush for business excellence awards

This thesis was submitted for the award of Doctor of Philosophy and was awarded by Brunel University LondonThere has been a proliferation of Business excellence awards (BEAs) in recent times, and the number of businesses entering and winning such awards is on the increase. Embedded in contemporary organising, business excellence awards have evolved to become a useful means to improving recognition in the marketplace, which in turn could facilitate the growth of a firm's customer base and drive it to achieve sustainable competitive advantage over their market rivals. In spite of its current relevance in contemporary organising, scholarly work examining this phenomenon remains scattered with the dominant narrative focusing on the intensive, even obsession with award entry preparation. This study examines how firms compete with each other for BEAs, and how they utilise them as symbolic tokens to achieve competitiveness. Drawing on the practice turn in contemporary social theory as a lens, the study explores how the material, meaning, and competence elements of BEAs, in context, interact and combine to give form and shape to BEAs as a practice in contemporary organizing. Adopting an explorative qualitative research design, the research contribution is developed in the context of a UK regional and national BEAs. Data for the inquiry comes from forty-five (45) semi-structured interviews with managers and owners of firms who won or were nominated for an award at one of the BEAs studied. This was supplemented with publicly available data on the BEAs, and the websites and social media pages of the firms studied. The study presents three main findings. First, emphasising the actions and situated practices that cohere to drive the competition for BEAs, the study identifies the internal and external influences that fuel firms desire to compete for these BEAs, suggesting that the significance of BEAs in achieving market competitiveness and other important organisational outcomes makes it an imperative ritual which firms cannot afford to ignore or boycott. Second, shedding light on why firms are keen on competing for BEAs, even if they cannot justify the value in terms of their balance sheets, the thesis unpacks the motivations and mentalities driving firms to compete for BEAs year in year out. Lastly, offering insight into why firms prioritise a particular BEA or award category, the thesis delineates the choices firms make when it comes to BEAs and identifies the potential value firms frequently capture from BEAs. The contribution of this study is also three-fold. First, the study in adopting the practice turn in contemporary social theory as a lens provides an alternative interpretation of how firms in their everyday organizing come to make sense of BEAs, and how the practice of BEAs in itself has evolved over time to shape the creation and capture of value for competitiveness. Second, it extends our understanding as to why many firms are keen to expend significant amount of their time and limited resources into preparing, entering, and competing for BEAs. Finally, in studying and theorising BEAs in the form of strategizing, the thesis extends our understanding of how firms could potentially turn their business excellence award fortunes into market competitiveness.Government of Ghana through the Ghana Scholarship Secretaria

INFORMATION TRANSPARENCY AND USER BEHAVIOR IN EMERGING ONLINE MARKETPLACES: EMPIRICAL STUDIES OF SOCIAL MEDIA AND OPEN INNOVATION MARKETS

Web 2.0 and social media have significantly increased the amount of information available to users not only about firms and their offerings, but also about the activities of other individuals in their networks and markets. It is widely acknowledged that this increased availability of information is likely to influence a user's behavior and choices. However, there are very few systematic studies of how such increased information transparency influences user behavior in emerging marketplaces. My dissertation seeks to examine the impact of increased information transparency - particularly, information about other individuals - in two emerging platforms. The first essay in my dissertation compares online "social" marketing on Facebook with "non-social" marketing and examines their relative impacts on the likelihood of adoption, usage and diffusion of an "App". While social marketing - wherein a user gets to see which of her other friends have also "liked" the product being marketed- is one of the fastest growing online marketing formats, there are hardly any studies that have examined the value of the social aspect of such marketing. I find that social marketing is associated with increased app adoption, usage, and diffusion as compared to non-social marketing. The study also uncovers interesting tradeoffs between the effects of different types of "social" information on user behavior outcomes. The second essay examines the behavior of contestants in an open innovation design marketplace, wherein firms seek solutions from a crowd through an online contest. The study examines how the availability of information about other contestants as well as the availability of feedback information provided to others by the contest holder, impacts a focal contestant's behavior and outcomes. I find that contestants adopt different strategic behaviors that increase their odds of winning the contest under the different information-transparency regimes. The findings have interesting implications for the design of online contests and crowdsourcing markets. Overall, my dissertation provides a deeper understanding of how the visibility of different types of information in online platforms impacts individual behaviors and outcomes