Journal of Research in Interactive Marketing

Keith S. Coulter; Anne Roggeveen

doi: 10.1108/17505931211265408pmid: N/A

Purpose – Information typically posted on group buying websites includes number of previous buyers, whether a limit has been placed on purchase number, and the time remaining until the deal expires. The purpose of this paper is to demonstrate that these factors may interact such that, under certain circumstances, purchase likelihood is reduced. Design/methodology/approach – The paper first examines actual online data; the authors then follow this with a 2×2×2 experiment in which they demonstrate psychological process. Findings – Providing previous‐buyer‐number information can have a positive effect on a consumer's decision to purchase at an online group buying website (e.g. Groupon). Imposing a purchase limit can increase these positive effects, but providing information on time‐to‐expiration (if it is relatively long) can negate the effects. Both perceived value and anticipated regret are found to be mediating factors. Research limitations/implications – It is possible that effects may be attenuated as a result of product familiarity. Practical implications – Retailers should pay particular attention to the timing or pattern of purchases on group buying websites, and provide information accordingly. Originality/value – This paper is the first to show how the three factors noted previously may interact to reduce purchase intentions.

Füsun F. Gönül; Peter T.L. Popkowski Leszczyc

doi: 10.1108/17505931211265417pmid: N/A

Purpose – Online auctions, which have become an important aspect of online sales, are generally regarded as stand‐alone events. However, in contrast to offline auctions, online auctions can be subject to the presence of simultaneous competing auctions. The purpose of this study is to model and estimate determinants of elapsed time to switch across concurrent auctions, with special attention to unobserved heterogeneity among bidders. Design/methodology/approach – Since auctions are dynamic and since the current winning bid progresses over time, the authors study time dependency over the course of an auction with hazard function models. To account for unobserved heterogeneity, the paper uses a latent class approach, which identifies bidder segments based on both observed and unobserved factors. Findings – The findings show significant heterogeneity across bidders, revealed by their varying degrees of propensity to switch across auctions. The three segments of bidders are The Inerts – about 30 percent, The Switchers – less than 10 percent, and The In‐Betweens. According to the findings, bidders can induce other bidders to switch to a concurrent auction by responding quickly to the current high bid. Moreover, the paper finds a surprisingly high degree of inertia and reluctance to switch towards the end of the auction when bidding is most critical. Originality/value – To the authors' knowledge, this study is the first to model elapsed time to switch from one auction to a simultaneous auction for an identical product, and to investigate determinants of the time required to switch, with special attention to unobserved heterogeneity across bidders.

Hyun‐Hwa Lee; Yoon Jin Ma

doi: 10.1108/17505931211265426pmid: N/A

Purpose – Online consumer reviews play an important role in influencing consumers' purchasing decisions by providing a wealth of information about products and services. Framed by uncertainty reduction theory, the purpose of this paper is to examine consumer perceptions of online consumer reviews and effects on consumer attitudes and usage behaviors in relation to individual characteristics. Design/methodology/approach – Data were randomly collected from 1,930 US online consumer review users using an online survey. Findings – The researchers found that consumers perceived both benefits and costs from online consumer reviews and that both benefits and costs influenced consumer attitudes toward, and usage behaviors of, online consumer reviews. Individual characteristics – confidence in the information process and consumer susceptibility to interpersonal influence – were shown to determine how online consumer reviews were perceived. Originality/value – The results provide insight to retailers and marketers as to how they can use consumer reviews for their products or services to improve business performance.

Yam B. Limbu; Marco Wolf; Dale Lunsford

doi: 10.1108/17505931211265435pmid: N/A

Purpose – The purpose of this study is to examine the effects of consumers' perception of online retailers' ethical behavior on consumer purchase and revisit intentions. Design/methodology/approach – A sample of 259 online shoppers was employed to test the relationships between perceived ethics of online retailers and the intention to revisit and purchase. The measurement model and structural relationships were estimated using AMOS 18. Findings – Results show that perceived ethics of an Internet retailer's website significantly affect consumers' trust and attitudes to the retailer's website that eventually have positive impacts on purchase and revisit intentions. Website trust was positively related to attitude toward the site. The results do not show support for a direct effect between perceived ethics and behavioral intentions, but attitude and trust toward the website mediate these effects. Practical implications – The findings support the idea that despite the physical distance between online retailers and customer, behaving ethically has an effect on revisit and purchase intentions. This suggests that online vendors should invest in methods that strengthen consumers' trust of websites. To convey a sense of ethics of the website, websites should ensure that privacy policies are easy to understand, explain clearly how customer information is used, offer secure payment methods, display clearly the terms and conditions of the online transactions, fulfill the orders, and avoid deceptive practices and exaggerations of product characteristics. Originality/value – Research integrating perceived ethical conduct of retailers and consumer behavior is still in the beginning, and has not explored all outcomes of perceived ethics. This study is an initial attempt to investigate the effects of perceived ethics of retailers on revisit and purchase intentions. This study contributes to the knowledge of consumer perceived ethics and behavioral intentions.