Essays on Online Browsing and Purchase

Essay One: Modeling Online Browsing and Purchase of Airline Tickets Online purchases are increasingly becoming a significant portion of total purchases in most product categories. While prior research in marketing has looked at information search and purchase decisions separately, we use a joint framework to study consumers\u27 online browsing and purchase of airline tickets in a unique dataset of household-level dynamic click stream panel data. We use a three-stage model to study: i) the choice of the first website visited,: ii) the duration of browsing on travel websites before making a purchase: iii) the choice of the website where consumers will make the purchase, and how a later stage choice is affected by decisions in previous stages. We simultaneously estimate these three models which constitute a non-linear discrete-continuous equation system using a simulation-based econometric technique. We find significant effects of expected level of expenditure, prior browsing experience, prior purchase experience in determining consumer browsing and purchase behavior. We are able to quantify the differences in attractiveness of a website in getting consumers to first visit them and compare it with the conversion effectiveness of a website in terms of getting consumers who visit to make purchases. A significant impact of choice of the first site visited and browsing duration on choice of the purchase site indicates the importance of modeling these decisions simultaneously. Our results can help managers identify the major determinants of consumer browsing and online purchase behavior, some of which cannot be observed in a brick-and-mortar environment. Essay Two: Modeling Online Multi-category Purchase in Travel In this paper we investigate online purchase behavior at the basket level and model the multi-category purchases in the travel product category. While prior research in marketing has looked at browsing or individual category purchase decisions, we study consumers\u27 online purchase of airline, car rental and hotel purchases together using a unique dataset of household-level dynamic click stream panel data. We use a two-stage model to study: i) the propensity of consumers to purchase a combination of products as a basket and: ii) the choice of the website where consumers will make those purchases. We then estimate the propensity of consumers to purchase a particular combination of products in their basket from different websites. This behavior constitutes a high dimensional system of multinomial equations which are then solved using a simulation-based econometric technique. We find significant effects of site preference, loyalty, prior browsing and demographic variables in determining consumer multi-category purchase behavior. Our results can help managers identify the major determinants of multi-category purchase as well as provide insights into cross promoting as well as upselling other products to consumers who visit their website

정체성 관련 메시지가 비경험 구전활동에 미치는 영향

학위논문 (석사)-- 서울대학교 대학원 : 경영학과, 2016. 2. 김상훈.Word-of-mouth (WOM) communication is one of the most powerful forces in consumer decision. Extant previous researches have examined the motivations and effects of WOM and found that it is common for consumers to use WOM as a source of self-signalingindividuals strategically choose what to talk. However, few prior researches distinguish WOM of their own experience from that of others. This research proposes that usage of identity-signals on product message frame can exert positive influence on potential consumers who have not yet purchased or consumed the firms product or service. Across two experiments, this research shows that the fundamental psychological motive to manage ones impression can lead consumers to transmit WOM given identity-signals in the product message. Experiments 1 and 2 demonstrate that the tendency to transmit WOM is likely to increase when individuals with no prior consumption experience on a product is framed with identity-relevant message. Experiment 2 reveals that consumers with no prior consumption experience had greater impression management motive, thereby increasing their intent of WOM transmission. This research concludes that given the identity- relevant message on the same product domain, individuals are more likely to transmit WOM as they strategically manage impression to others about the product with which they have no purchase or consumption experience.1. Introduction 1 2. Theoretical Background 3 2.1 Motivational Analysis on Word-of-Mouth 3 2.2 Benefits and Costs of Word-of-Mouth on Consumer Identity 4 2.3 Identity Relevance of Products 6 2.4 Word-of-Mouth in Different Experience Stages 8 3. The Current Research 9 3.1 Hypotheses 9 3.2 Impression Management Motive on Word-of-Mouth Intention 12 4. Experiments 15 4.1 Study 1: Interplay between Identity Signals and Experience 15 4.2 Study 2: Mediating Role of Impression Management Motive 23 5. General Discussion 32 References 38 Appendix 1 46 국문초록 48Maste

An analysis into early customer experiences of self-service checkouts:lessons for improved usability

The research aims to examine the perceptions of relative novice users of self-service checkouts (SSCOs) and if these perceptions change before, during and following use. Employing a diary approach with 31 respondents relatively unfamiliar with SSCOs, the research will document their experiences with this technology across stationary, hardware and grocery stores in two Scottish cities (Glasgow and Dundee). Findings suggest that the majority of respondents were motivated to use the technology because of time saving and convenience. However, the actual experience of using SSCOs was not always considered quicker when compared to staffed checkouts because of technical issues, lack of staff assistance and the impersonal, sometimes stressful and controlled nature of the cramped SSCO environment. Following post-use reflections, the majority of respondents’ opinions did not change from their initial perceptions and indicated that they would prefer not to use the technology in the future. Based on the findings, this study makes some practical suggestions centring on the design and usability of SSCOs, which may go some way to reducing customer dissatisfaction and frustration with the technology, especially from the perspective of new users of the technology

The effects of progressive levels of 3d authenticity antecedents and consequences on consumers’ virtual experience

This study investigates the effects of authentic three dimensional (3D) product visualisation antecedents on 3D authenticity, and the effects of 3D authenticity consequences on consumers’ virtual experience. A hypothetical retailer Web site presents a variety of laptops for the within-subjects laboratory experiments. In a first experiment, a one-way ANOVA compares telepresence and authenticity scores. The second experiment uses two-way repeated measures ANOVA to determine the effects of the progressive levels of the antecedents on 3D authenticity. In a third experiment, two-way repeated measures ANOVA determine the effects of the progressive levels of 3D authenticity consequences on willingness to purchase. The results show that authenticity is more useful than telepresence in simulating consumers’ virtual experience. The high levels of control and animated colours lead to higher authenticity for the site. In addition, the high levels of 3D utilitarian and hedonic constructs enhance willingness to purchase from the online retailer

The Importance of Transparency and Willingness to Share Personal Information

This study investigates the extent to which individuals are willing to share their sensitive personal information with companies. The study examines whether skepticism can influence willingness to share information. Additionally, it seeks to determine whether transparency can moderate the relationship between skepticism and willingness to share and whether 1) companies perceived motives, 2) individual’s prior privacy violations, 3) individuals’ propensity to take risks, and 4) individuals self-efficacy act as antecedents of skepticism. Partial Least Squares (PLS) regression is used to examine the relationships between all the factors. The findings indicate that skepticism does have a negative impact on willingness to share personal information and that transparency can reduce skepticis

Consumer Ethnocentrism: A Comparison of Arab and Western Audiences

The subject of consumer ethnocentrism is discussed in the context of advertising country-of-origin effects. The literature and suggestions concerning the phenomenon in the Middle East are brought up and a study using U.S. and Egyptian samples is described. The findings show some evidence of consumer ethnocentrism in both countries, though statistical significance is only achieved with U.S. data, generally consistent with prior writing and research focused on developed versus developing countries. Special attention is given to the construct of worldliness and though not statistically significant, results suggest it may be a factor deserving additional study

Using 3D product visualisation to tap consumers’ experience with online retailers: From telepresence to authenticity

This study investigates the effects of authentic three dimensional (3D) product visualisation versus 3D telepresence on consumers’ virtual experience. A hypothetical retailer Web site presents a variety of laptops using 3D product visualisations for the within-subjects laboratory experiment. The first stage uses two-way repeated measures ANOVA to determine the effects of the progressive levels of control and animated colours on 3D authenticity (the dependent variable). In a second stage, we use structural equation modelling to test the proposed hypothesis. This research uses a U.K. sample to investigate the effects of 3D authenticity and 3D telepresence on willingness to purchase and reveals significant differences between telepresence and authenticity constructs. Authenticity is more significant in simulating an online retailer’s products, and control and animated colours represent the main antecedents of authenticity. The proposed conceptual model achieves acceptable fit and the hypothesised paths are all valid

Fats are glossy but does glossiness imply fatness? The influence of packaging glossiness on food perceptions

This research brings together two research streams, one focusing on the influence of a diverse set of packaging attributes (e.g., shape, size, color, etc.) on perceptions of packaged food and the second one on the up- and downsides of using glossy materials, which are often studied in a non-food context. The current research deals with the influence of glossy (versus matte) food packages on consumers' perceptions of the food inside the package. With one online survey and one quasi-experiment, we show that consumers draw inferences on the food's fat level from the package surface, in that glossy packages are seen as a signal of fatness. This association is specific; consumers do not associate glossiness with every unhealthy product aspect. Sugar levels are unaffected by the package surface. However, due to the higher inferred fat level, a product in a glossy package is perceived to be less healthy, less tasty, and low in quality and product expensiveness. Thus, these findings suggest that glossy (versus matte) food packages mainly serve as a signal of negative product qualities

A comparison of three interactive television AD formats

This study explores the effects of interacting with three current interactive television (iTV) ad formats, using an Australian audience panel. Interaction with iTV ads has positive effects on awareness and net positive thoughts, which increase purchase intentions compared with the influence of regular ads. The telescopic format represents the best format, likely because it makes the most of the entertaining possibilities of iTV by offering additional long-form video; its superior performance cannot be explained readily by self-selection effects. The results suggest that the effectiveness of iTV ads should be measured by their interaction rate rather than the much smaller response rate, and iTV advertisers should consider ways to maximize interaction and response rates