UNDERSTANDING CONSUMERS' ONLINE INFORMATION RETRIEVAL AND SEARCH: IMPLICATIONS FOR FIRM STRATEGIES

The growth of the Internet and other digitization technologies has enabled the unbundling of the physical and information components of the value chain and has led to an explosion of information made available to consumers. Understanding the implications of this new informational landscape for theory and practice is one of the key objectives of my research. My dissertation seeks to understand how firms can use their knowledge of online consumer search and information seeking behaviors to design optimal information provision strategies. The main premise is that consumers' online search behaviors are key to understanding consumers' underlying information needs and preferences. In my first essay I specifically focus on big-ticket, high-involvement goods for which firms essentially have sparse information on their potential buyers - making information reflected in consumers' online search very valuable to online retailers. I use a new and rich source of clickstream data obtained from a leading clicks-and-mortar retailer to model consumers' purchase outcomes as a function of the product and price information provided by the retailer, and find interesting differences for sessions belonging to customers classified as browsers, directed shoppers and deliberating researchers. Since consumers typically straddle online as well as traditional channels, the second essay in my dissertation examines how online information acquired by consumers affects their choices in offline used-good markets. Secondary markets characterized by information asymmetries have typically resorted to quality-signaling mechanisms such as certification to help reduce the associated frictions. However, the value of traditional quality signals to consumers depends crucially on the extent of the asymmetries in these markets. The online information available to consumers today may help bridge such asymmetries. Drawing upon a unique and extensive dataset of over 12,000 consumers who purchased used vehicles, I examine the impact of their information acquisition from online intermediaries on their choice of (reliance on) one such quality signal - certification, as well as the price paid. These findings will help firms to better understand how the provision of different types of online information impacts consumers' choices and outcomes, and therefore help them in designing better and targeted strategies to interact with consumers

Clicks to conversion: the value of product information and price incentives

Journal ArticleThis study uses clickstream data obtained from a large online durable goods retailer to examine how different types of information - product-related and price-related information provided by retailers - impact purchase-related outcomes for consumers. Using mixture-modeling techniques to analyze latent differences among customers, we find that consumers fall under three distinct categories - directed shoppers, deliberating researchers and browsers. In examining the impacts of information on purchase outcomes, we find that product and price-related information impacts consumers in these three shopping states differently. While product information highlighting features of product alternatives in a category has the strongest impact on deliberating researchers, specific price incentives related to category-level discounts increases the likelihood of purchase for both directed shoppers as well as browsers. Price incentives relating to site-wide free shipping have a positive impact on purchase for all consumers. Surprisingly, category-level discounts have a negative impact on deliberating researchers, while rich product information hampers the purchase process of directed shoppers. We discuss the managerial implications of our findings and the role of clickstream analytics in designing dynamic targeting and information provisioning strategies for online retailers

Weekend effect in internet search advertising

Journal ArticleThis paper examines whether Internet search advertising exhibits a weekend effect, a substantial difference in the effectiveness of ad spending on weekends vs on weekdays. We employ a data set from a major hotel chain, consisting of daily spending on search ads for 13 months, across three search engines and two brands. We find that there is a strong weekend effect. Each dollar of ad spending on weekends delivers a lower sales return than the corresponding return on weekdays. The advertising elasticity (percentage change in sales for a percentage change in ad spending) is about 3:7% lower on weekends, which translates to a 10% reduction in sales return at the mean level of daily spending. The weekend effect is robust across the 6 combinations of search engines and brands. We show that the reduction in advertising elasticity is primarily attributable to an increase in the price of clicks on weekends rather than due to any differences in conversion rate of click-throughs to sales. Further, we find that the weekend effect is exacerbated for ad spending at the top-ranked paid search listings. Awareness of the weekend effect can help managers fine-tune the distribution of their advertising budget across time, and achieve greater sales returns from a given ad budget

Quality Uncertainty And Adverse Selection In Online Sponsored-Search Markets

Sponsored-search mechanisms, where advertisers bid for better placement in the listing of search results on Yahoo! and Google, have emerged as the dominant revenue model for online search engines. Interestingly, Yahoo! and Google employ different mechanisms to determine the placement of bidders’ advertisements. This provides an unprecedented opportunity to extend the research relating quality and advertising in traditional markets to the online setting, and also examine whether intervention by the search intermediary impacts the outcomes observed in these markets. Using data from online sponsored-search auctions, we examine the relationship between advertisers’ quality and their advertising-intensity, indicated by their willingness to pay for search listings. We assess how this relationship differs across search, experience, and credence products characterized by differing degrees of quality uncertainty as well as across the two markets. We find significant differences in the quality-advertising relationships across the three product categories as well as across the two market mechanisms. We discuss the implications of our findings for consumers as well as intermediaries, and provide directions for future research in this emerging context

The Causal Impact of Fit Valence and Fit Reference on Online Product Returns

We investigate the causal impact of two types of product fit-related information – fit valence and fit reference – on online product return rate by leveraging a change in the product review system that took place at an online retailer. This quasi-experiment in the apparel product category allows us to examine the importance of fit information. We find that the mere presentation of either fit-valence (e.g. “true to size”) or fit-reference information (e.g. body size) by itself does not help reduce purchase errors. Rather, it is the combination of the two types of fit information in a review that drives the drop in product return rate. We employ the lens of semantic relativism to illustrate how customers interpret fit-valence expressions by using the fit-reference information provided by the same reviewer. Our findings offer useful business implications to online retailers grappling with high product return rates for merchandise where fit matters

STATE OF SHOPPING AND THE VALUE OF INFORMATION: INSIGHTS FROM THE CLICKSTREAM

A critical challenge for online retailers is to determine what types of product and price information are best suited to influence online conversion. While it has long been known that customers differ in their state of shopping, it is cumbersome to learn about such latent differences offline. The availability of clickstream data however helps us in identifying meaningful segments of sessions on the basis of customers’ online behaviors. We examine whether product and price information had different impacts on customers belonging to three states of shopping, and also assess the effect on outcomes within a session and across sessions. Our results question the practice of offering price promotions to all customers of a store, and highlight the value of product information in increasing loyalty for some customers. Depending on the retailer’s goal– short term conversion versus longer-term customer relationship–a different information provision strategy is likely to be optimal

A Comparative Study of Effect of Oral Melatonin Versus Oral Midazolam as Premedicant in Children Undergoing Surgery Under General Anesthesia

Background: Preoperative anxiety in children is associated with multiple post-operative outcomes like post-operative regressive behavioral disturbances, prolonged distress in the recovery phase, eating disorders, and bedwetting. The present study was designed to use low-dose oral melatonin versus oral midazolam in relieving pre-operative anxiety in children in the Indian population. Materials and Methods: A prospective randomized comparative study was conducted on children aged between 2 to 10 years of age scheduled for elective surgeries under general anesthesia are included in the study. This study was conducted with a sample size of 70. Patients were randomly distributed into two groups of 35 content. Group A (received 0.2mg/kg melatonin as premedical) and group B (received 0.5mg/kg midazolam as premedical). Results: Mean induction dose of propofol in the melatonin group was 52.143+ 18.36 mg and in the midazolam, the group was 48.714 + 16.6 mg. In our study, 90 minutes after premedication, the anxiety score was less in the midazolam group. There was no statistically significant difference between the sedation scores in melatonin and midazolam. Conclusion: Low-dose melatonin (0.2mg/kg) is not an effective alternative premedicant in children to alleviate preoperative anxiety compared to midazolam