The impact of online reviews on consumers' purchasing decisions : evidence from an eye-tracking study

This study investigated the impact of online product reviews on consumers purchasing decisions by using eye-tracking. The research methodology involved (i) development of a conceptual framework of online product review and purchasing intention through the moderation role of gender and visual attention in comments, and (ii) empirical investigation into the region of interest (ROI) analysis of consumers fixation during the purchase decision process and behavioral analysis. The results showed that consumers' attention to negative comments was significantly greater than that to positive comments, especially for female consumers. Furthermore, the study identified a significant correlation between the visual browsing behavior of consumers and their purchase intention. It also found that consumers were not able to identify false comments. The current study provides a deep understanding of the underlying mechanism of how online reviews influence shopping behavior, reveals the effect of gender on this effect for the first time and explains it from the perspective of attentional bias, which is essential for the theory of online consumer behavior. Specifically, the different effects of consumers' attention to negative comments seem to be moderated through gender with female consumers' attention to negative comments being significantly greater than to positive ones. These findings suggest that practitioners need to pay particular attention to negative comments and resolve them promptly through the customization of product/service information, taking into consideration consumer characteristics, including gender

The Determinants of Customer Perceptions in a Dynamic Business Environment: An Exploratory Analysis of the ASP Business Model

Outsourcing attracted much attention in 1989 when Kodak outsourced its data center operation to IBM (International Business Machines Corp.). Nowadays, this strategy has become more popular. At the beginning of this century, the ASP (Application Service Provider) model was considered one of the typical solutions of Internet-based IT (Information Technology) outsourcing. Although this model has been transformed and renamed (e.g. SaaS - Software as a Service), the principle concept of providing IT service through the Internet or wide area network is still there. This study attempts to explore the determinants of customer perception of Internet-based IT outsourcing by obtaining a comprehensive understanding of the ASP model. The research dimensions not only include factors affecting users' perception of service quality but also ASP business position (i.e. the firm origin of ASP and its provider type) and services utilized by the customers. Through the study of firm history, two important theoretical themes of this research - path-dependence and Ansoff's product/ market growth matrix - are taken account of in exploring the influence of the determinants. Web-based questionnaire survey research is conducted together with a documentation study to collect data. Targeting the customers of the top 50 ASPs selected by ASPnews.com during the period 2001-2004, the researcher contacted 597 potential respondents, and 196 responses were returned. The valid sample consisted of 175 responses, and 124 of them not only provided full information for satisfaction evaluation but also the information for tracking their ASP vendors' business position. The GLM (General Linear Model) and the Pearson correlation coefficient were the major statistical approaches used to evaluate the survey data for developing a structural model. The research findings indicated that the factors associated with service competitiveness, such as capability and performance, reliability and trustworthiness, affordability, integration and customization, have positive effects on customer perceived satisfaction; whereas lock-in has a negative effect. More specifically, the origin of the ASP firm has a direct effect on capacity and performance, and also directly influences the use of IT adoption services. Based on this finding, a descriptive analysis and qualitative research shows that two mechanisms for path-dependence - existing expertise and perceived expertise - can affect the satisfaction level of capacity and performance of ASP services. On the other hand, provider type has a direct effect on affordability and also directly influences the use of facility supporting services. On this basis, another two mechanisms for path-dependence - transaction cost and standardization - can indirectly impact customer's perception of this business model via affordability. In addition to those major findings, some other determinants (e.g. software applications, brand of applications, and intensity of service used) were also identified in this study. The study result can be used for theoretical understanding about the determinants of ASP customer's perception. It not only indicates a new perspective to enhance the current body of research on this topic, but can also be more broadly applied to any fast-growth firm, rapid-change business, or technology intensive industry. Acknowledgements I would like to sincerely thank the following people for their contribution to this research project. Dr. Scott Koslow, my chief supervisor, for his continued encouragement, patience and guidance to ensure the completion of this project. His speciality in statistics has provided appropriate and valuable guidance in the data analysis for my research. Dr. Steven Lim, my second supervisor, for his advice, coherence, and support over the years. I also appreciate his constructive comments on my drafts and the shaping of my research. Dr. Bob McQueen and Dr. Jim Corner, for their assistance and advice in the early stages of my study. My parents, Yu-Ho and Lee-Chiung Liang, and my brother Ken, my sisters Annie, Eva, and Nancy, my brothers-in-law, J.C. and Chen, and Alice, my sister-in-law, for their emotional support throughout the length of my study. I also thank Bessie, my best friend for her assistance in data collection and her loving support, as well as Ted, Kevin, Mark, Frank, and Shirley, my study mates for their encouragement and friendship. Special thanks goes to Dr. Kuang-Ya Wang, the principal of Yu Da High School of Commerce and Home Economics, Taiwan, and also to the staff over there for their concern and assistance in data collection. Most importantly, my heartfelt appreciation goes to Warren, my husband. I am deeply grateful to him for his understanding, patience, and practical help. Without his enduring support I could not have done this study. Finally, my thanks and gratitude goes to those people who patiently answered my survey questionnaire as their kind assistance made it possible to complete this research

Ecosystem synergies, change and orchestration

This thesis investigates ecosystem synergies, change, and orchestration. The research topics are motivated by my curiosity, a fragmented research landscape, theoretical gaps, and new phenomena that challenge extant theories. To address these motivators, I conduct literature reviews to organise existing studies and identify their limited assumptions in light of new phenomena. Empirically, I adopt a case study method with abductive reasoning for a longitudinal analysis of the Alibaba ecosystem from 1999 to 2020. My findings provide an integrated and updated conceptualisation of ecosystem synergies that comprises three distinctive but interrelated components: 1) stack and integrate generic resources for efficiency and optimisation, 2) empower generative changes for variety and evolvability, and 3) govern tensions for sustainable growth. Theoretically grounded and empirically refined, this new conceptualisation helps us better understand the unique synergies of ecosystems that differ from those of alternative collective organisations and explain the forces that drive voluntary participation for value co-creation. Regarding ecosystem change, I find a duality relationship between intentionality and emergence and develop a phasic model of ecosystem sustainable growth with internal and external drivers. This new understanding challenges and extends prior discussions on their dominant dualism view, focus on partial drivers, and taken-for-granted lifecycle model. I propose that ecosystem orchestration involves systematic coordination of technological, adoption, internal, and institutional activities and is driven by long-term visions and adjusted by re-visioning. My analysis reveals internal orchestration's important role (re-envisioning, piloting, and organisation architectural reconfiguring), the synergy and system principles in designing adoption activities, and the expanding arena of institutional activities. Finally, building on the above findings, I reconceptualise ecosystems and ecosystem sustainable growth to highlight multi-stakeholder value creation, inclusivity, long-term orientation and interpretative approach. The thesis ends with discussing the implications for practice, policy, and future research.Open Acces

THE ECONOMIC VALUE OF ONLINE NETWORKS: EVIDENCES FROM SOCIAL MEDIA AND ELECTRONIC COMMERCE

Ph.DDOCTOR OF PHILOSOPH

Embedding risk management within new product and service development of an innovation and risk management framework and supporting risk processes, for effective risk mitigation : an action research study within the Information and Communication Technology (ICT) Sector

At first glance, innovation and risk management seem like two opposing disciplines with diverse objectives. The former seeks to be flexible and encourages enhanced solutions and new ideas, while the latter can be seen as stifling such innovative thinking. Since there is a failure rate of as many as eight out of every ten products launched, it is perhaps necessary for organisations to consider applying more structured approaches to innovation, in order to better manage risks and to increase the chances of delivering improved goods and services. A risk management approach is well suited to address the challenge of failure, as it focuses not only on the negative impact of risks but also on the opportunities they present. It aligns these with the strategic objectives of the organisation to increase the chances of its success. The research objective of this study was to establish how to embed risk management within the innovation divisions of an organisation to ensure that more efficient products and services are delivered to customers. To achieve this end, action research was conducted in a large organisation operating in a high-technology environment that launches many diverse products and services and rapidly expanding service offerings to other industries. The study took four years to complete and delivered multiple interventions that successfully embedded risk management within the organisation, leading to changed behaviours and double-loop learning. Two main knowledge contributions are offered by the study. Firstly, a generic and empirically validated integrated Innovation and Risk Management Framework (IRMF) is developed and guides new product and service development by considering both best practices and risks. Secondly, a risk dashboard is designed as a design science artefact within the action research cycles, which consolidates all the knowledge that was generated during the study. This is ultimately a visual interface to support stage-gate decision making. Since the context of the study was broad, extensive and complicated, the use of mixed-method research complemented and expanded on the findings by providing another layer of support and validation. This thesis highlights the complexity of innovation and presents the need for an organising framework that will encourage innovation but is sufficiently flexible to cater for diverse needs and risks. The study delivers several other, valuable contributions regarding what, how and why incidents occur within the real-world context of new product and service development. Several generic artefacts, such as risk processes and maturity frameworks, are also developed, which can guide risk and new product and service development practitioners to deliver more efficient product and services. This study offers several novel approaches to evaluating risks and provides practical support and recommendations, addressing shortcomings of fragmented research in similar, but smaller-scale studies that have been conducted in information systems. It is the premise of this research that a much wider number of risks need to be managed as new products and services are developed, than was noted in previous studies. Effective risk management in new product and service development could lead to competitive advantage for organisations by increasing knowledge and facilitating sustainable, informed risk decision-making

The role of consumer-brand engagement in a digital marketing era

The purpose of this thesis is to understand the role of consumer-brand engagement in a digital marketing era. We explore the consumer-brand engagement construct in relation to consumers as the engagement subjects, and brands (i.e., brand/companies) as the engagement objects. Our intention is to contribute to advancing the theoretical knowledge of this subject and to provide useful insights that can be used by practitioners, particularly companies that use interactive platforms to create consumer-brand relationships.O objetivo desta tese é o de compreender o papel do compromisso entre o consumidor e a marca nesta nova era de marketing digital. Exploramos nesse sentido o constructo do compromisso entre o consumidor e a marca, sendo o consumidor o sujeito do compromisso e a marca (isto é, marcas ou empresas) o objeto desse compromisso. É nosso objetivo contribuir para o avanço teórico do conhecimento sobre esta área do saber, bem como fornecer novos conhecimentos que possam ser úteis e utilizados pelos gestores nas empresas, nomeadamente no que diz respeito a empresas que utilizem plataformas interativas para criar relacionamentos entre os consumidores e as marcas

A study of the significant factors affecting trust in electronic commerce

E-commerce is the process of buying and selling products and services on the internet. This type of transaction is such that customers are able to see the virtual appearance through images, technical information, and video clips of products/services, but cannot obtain the actual experience of face-to-face touch, smell, and visualization. Such virtual experience coupled with the absence of a seller may create a sense of unreliability and vulnerability in the minds of the customers. Moreover, due to the nature of the internet, users are being susceptible to online frauds arising out of the activities of unscrupulous third parties. All these affect the trust of customers in online transactions and thereby affect online purchase decisions. A number of studies have been conducted to identify the factors that affect trust in e- commerce. However, none of these studies have been able to provide a comprehensive list of the factors that affect trust. Moreover, some of the studies had problems relating to use of inappropriate sampling techniques and using student samples and hence, raising issues of representativeness and affecting generalizability of the findings. Some studies also had also problems relating to the statistical techniques being used to analyze the data. Considering these limitations, the present study is undertaken. This present study is complementary to previous studies and aims at answering the following questions: How do we measure trust in online transactions? What are the factors that affect trust in e- commerce? How do the factors affecting trust relate and inter-relate to each other? To answer these questions, a review of the existing literature on factors affecting trust is conducted. This enables to develop the theoretical framework of the study having a number of hypotheses culminating in the development of a model for trust in e- commerce. For the study, a normative survey technique was used. An online questionnaire made it possible to enumerate 789 respondents, responses of 703 were usable. The data collected was screened and pre-tested to see whether they qualify for multivariate data analysis. Once this was ensured, statistical techniques such as exploratory factor analysis using principal component analysis, confirmatory factor analysis (CFA), and structural equation modelling (SEM) were applied to test the hypotheses. The findings of the study show that the factors directly affecting trust in e-commerce are market orientation, perceived security and technological trustworthiness, and relational benefit. Moreover, the findings show that user interface quality affects relational benefit. The two factors, 'importance of websites' reputation' and 'social presence' affect trust indirectly with perceived security and technological trustworthiness playing the mediating role. Another factor, 'perceived product and service information quality’ proved to have no relationship with relational benefit. The analysis of the results explaining the inter-relationships led to the confirmation of the model for trust in e-commerce. This model was further tested across samples with differing web experience, age, gender, and income. There were no significant differences in the parameter estimates of the relationships in the model. This indicates that the model is generalizable across different populations. In conclusion, the research has certain contributions to existing knowledge. These include - The development of a comprehensive model explaining the dependence and interdependence of the factors affecting trust in e-commerce. Understanding of trust in e-commerce as a multi-dimensional construct consisting of four dimensions― ability, benevolence, integrity, and predictability. Understanding the role of the direct and indirect influence of the factors affecting trust that led to reduction in risk perceptions. Additionally, the research contributes to certain managerial and business practices. Online businesses need to develop their websites to enable convenience in navigation by improving layout and design features of the websites. Moreover, to cater to the tastes and preferences of customers, e-commerce websites need to provide products and service desired suitable by customers. To attract customers, a sense of warmth and human touch need to be introduced in the websites. Coupled with this, there is the need to improve security features and privacy issues