Revisiting the two-stage choice model: an empirical study of consumer choice on brand website visits

In consumer choice behaviour literature, a two-stage choice model serves as a base theory where choice behaviour is decomposed into a consideration stage plus a choice stage. Yet, this default model has been increasingly challenged by the ‘limited consumer search’ school of thought because consumers do not necessarily review all products in a choice set before making decisions, but frequently draw on external information as mental short cuts. Methodologically, the choice behaviour in stage 1 has traditionally been latent because data that directly observe how consumers form their consideration sets by eliminating alternatives are lacking. This study continues the ‘limited consumer search’ line of reasoning and proposes an aided non-compensatory process in choice stage 1, where consumers reduce brand website alternatives by using online ratings to arrive at a consideration set. We use observed Web analytics data to unveil the stage 1 choice process and also the transition from stage 1 to stage 2, which is in need of further research based on extant literature. Lastly, we cross-validate our model with two types of websites (i.e. search vs. experience/credence) and find our model is contingent on the type of website content, where consumers’ inclination to use online ratings for decision-making varies.     

Product type and consumers’ perception of online consumer reviews

Consumers hesitate to buy experience products online because it is hard to get enough information about experience products via the Internet. Online consumer reviews may change that, as they offer consumers indirect experiences about dominant attributes of experience products, transforming them into search products. When consumers are exposed to an online consumer review, it should be noted that there are different kinds of review sources. This study investigates the effects of review source and product type on consumers’ perception of a review. The result of the online experiment suggests that product type can moderate consumers’ perceived credibility of a review from different review sources, and the major findings are: (1) consumers are more influenced by a review for an experience product than for a search product when the review comes from consumer-developed review sites, and (2) a review from an online community is perceived to be the most credible for consumers seeking information about an experience product. The findings provide managerial implications for marketers as to how they can better manage online consumer reviews.     

An information gain-based approach for recommending useful product reviews

Recently, many e-commerce Web sites, such as Amazon.com, provide platforms for users to review products and share their opinions, in order to help consumers make their best purchase decisions. However, the quality and the level of helpfulness of different product reviews are not disclosed to consumers unless they carefully analyze an immense number of lengthy reviews. Considering the large amount of available online product reviews, this is an impossible task for any consumer. Therefore, it is of vital importance to develop recommender systems that can evaluate online product reviews effectively to recommend the most useful ones to consumers. This paper proposes an information gain-based model to predict the helpfulness of online product reviews, with the aim of suggesting the most suitable products and vendors to consumers. Reviews are analyzed and ranked by our scoring model and reviews that help consumers better than others will be found. In addition, we also compare our model with several machine learning algorithms. Our experimental results show that our approach is effective in ranking and classifying online product reviews.     

Interactive ads recommendation with contextual search on product topic space

The rapid popularization of various online media services have attracted large amounts of consumers and shown us a large potential market of video advertising. In this paper, we propose interactive service recommendation based on ad concept hierarchy and contextual search. Instead of traditional ODP (Open Directory Project) based approach, we built a ad domain based concept hierarchy to make the most of the product details over the e-commerce sites. Firstly, we capture the summarization images related to the advertising product in the video content and search visually similar product images from the built product image database. Then, we aggregate the visual tags and textual tags with K-line clustering. Finally, we map them to the product concept space and make keywords suggestion, and users can interactively select keyframes or keywords to personalize their intentions by textual re-search. Experiments and comparison show that the system can accurately provide effective advertising suggestions.     

The moderating role of information load on online product presentation

Online product presentations, which help consumers obtain product information, have an important role in shopping websites. Two major information types, visual and textual information, govern the modalities of consumers in acquiring product-related information from most online product presentations. Previous studies have debated on which of these two information types can enhance the shopping performance of consumers. However, these debates have resulted in dichotomous outcomes. In this regard, the factor(s) that contribute to such divided results must be examined. In this study, we use the level of processing theory and information load to examine the effect of online product presentations on the online shopping performance of consumers. A laboratory experiment has also been conducted. The results of data analysis show that information load has a significant moderating role on the effects of online product presentations. The experimental results show that visual-based online product presentation has a greater effect on the shopping performance of consumers in high information load condition, whereas textual-based online product presentation provides greater performance advantages in low information load condition. Finally, the implications of these findings to both academics and practitioners are discussed.     

Herd behavior in purchasing books online

Previous studies on informational cascades have stressed the importance of informational social influences in decision-making. When people use the product evaluations of others to indicate product quality on the Internet, online herd behavior occurs. This work presents four studies examining herd behavior of online book purchasing. The first two studies addressed how two cues frequently found on the Internet, i.e., star ratings and sales volume, influence consumer online product choices. The last two studies investigated the relative effectiveness of different recommendation sources. The experimental results demonstrated that subjects use the product evaluations and choices of others as cues in making purchasing book decisions on the Internet bookstore. Additionally, recommendations of other consumers exerted a greater influence on subject choices than recommendations of an expert. Finally, recommendations from recommender system influenced online consumer choices more than those from website owners. The results and implications of this research are discussed.     

基于商品特征关联度的购物客户评论可信排序方法

电子商务网站中,海量无序的用户评论可能导致消费者客户“迷失”其中,无法识别评论的可信和真假。针对这个问题,提出了一种根据用户评论的可信度对其重新排序的方法。首先,针对网站商品广告信息,关注在线用户评论内容是否和商品功能属性密切相关,设计了基于HTML脚本格式的购物网站中商品关键特征提取算法,给出了基于自然语言处理的用户评论特征词提取方法;然后,利用词语相似度来分析商品特征和用户评论内容之间的关联度,提出了购物客户评论的可信度计算方法;最后,通过实例分析,实现了大量购物客户评论的可信排序,使得用户无须浏览全部或者大部分之后就能判断哪些评价可以信任或者具有实际的参考价值,降低了信息搜索成本,提高了决策效率。     

A new algorithm for modeling online search behavior and studying ranking reliability variations

We design an information retrieval algorithm that mimics the stochastic behavior of decision-makers (DMs) when evaluating the alternatives displayed by an online search engine. The algorithm consists of a decision tree that incorporates all the 1024 decision nodes that may arise from the information retrieval process of DMs. We calibrate the behavior of the algorithm to the one observed from online users and run several sets of 1,000,000 queries. Each query lets DMs decide which subset of the ten alternatives composing the initial page of results to click, allowing us to evaluate their behavior as ranking reliability is assumed to decrease when DMs decide not to click on an alternative. We compare the click-through rates (CTRs) obtained when modifying the degree of ranking reliability derived from the alternatives displayed on the first page of search results. We illustrate how the stability of the CTR prevails among the top-ranked alternatives within relatively reliable scenarios while it drops when imposing large initial decrements in reliability. The resulting consequences regarding the importance of relative ranking positions are analyzed, the top three alternatives exhibiting a generally contained decrease in their CTRs that contrasts with the cumulative pattern arising from the fourth position onwards.

     

Price competition in e-tailing under service and recognition differentiation

The Internet has significantly increased the bargaining power of consumers. Many online shopping search engines allow consumers to find most retailers that sell a specific product, compare product prices, and review detailed store ratings. With competition just a click away, online retailers have little control over where consumers would shop. Offering the lowest price alone does not always guarantee that consumers will come and buy at your site. Other non-price attributes, such as service quality and a merchant’s brand recognition, also play important roles in helping online retailers to build competitive advantages. In this paper, we present a model of price competition that assumes e-tailers can mainly differentiate themselves by providing different levels of service and by establishing a different online recognition. Closed-form equilibrium solutions are obtained for the different scenarios that may arise in this model. Based on such solutions, we give managerial insights on how e-tailers should position themselves when parameters such as service cost, service levels, and recognition are varied.     

Is paid search overrated? When bricks-and-mortar-only retailers should not use paid search

While bricks-and-mortar-only retailers do not offer online purchasing, they often take advantage of multi-channel management strategies to reach consumers in a pre-purchase phase. We investigate whether paid search can increase the sales of brick-and-mortar retailers who promote their offers via an informational website. Although a sizeable one third of all retailers still trade without an online-shop, previous work has been silent about the effects of paid search for them. We make use of a randomized field experiment and an end-to-end tracking mechanism to investigate the cross-channel behavior of individual consumers. Our empirical results suggest that, whilst paid search increases the number of potential customers through enhancing the reach of marketing initiatives, store sales are not increased. We conclude that customers who search online to buy offline primarily use paid search as a navigational shortcut to the retailer’s website. Consequently, bricks-and-mortar-only retailers seeking to increase store purchases should approach paid search with caution.     

Likelihood to abort an online transaction: influences from cognitive evaluations,attitudes, and behavioral variables

This study identifies evaluative, attitudinal, and behavioral factors that enhance or reduce the likelihood of consumers aborting intended online transactions (transaction abort likelihood). Path analyses show that risk perceptions associated with e-shopping have direct influence on the transaction abort likelihood, whereas benefit perceptions do not. In addition, consumers who have favorable attitudes toward e-shopping, purchasing experiences from the Internet, and high purchasing frequencies from catalogs are less likely to abort intended transactions. The results also show that attitude toward e-shopping mediate relationships between the transaction abort likelihood and other predictors (i.e., effort saving, product offering, control in the information search, and time spent on the Internet per visit).     

Manipulation of online reviews: An analysis of ratings, readability, and sentiments

As consumers become increasingly reliant on online reviews to make purchase decisions, the sales of the product becomes dependent on the word of mouth (WOM) that it generates. As a result, there can be attempts by firms to manipulate online reviews of products to increase their sales. Despite the suspicion on the existence of such manipulation, the amount of such manipulation is unknown, and deciding which reviews to believe in is largely based on the reader's discretion and intuition. Therefore, the success of the manipulation of reviews by firms in generating sales of products is unknown. In this paper, we propose a simple statistical method to detect online reviews manipulation, and assess how consumers respond to products with manipulated reviews. In particular, the writing style of reviewers is examined, and the effectiveness of manipulation through ratings, sentiments, and readability is investigated. Our analysis examines textual information available in online reviews by combining sentiment mining techniques with readability assessments. We discover that around 10.3% of the products are subject to online reviews manipulation. In spite of the deliberate use of sentiments and ratings in manipulated products, consumers are only able to detect manipulation taking place through ratings, but not through sentiments. The findings from this research ensue a note of caution for all consumers that rely on online reviews of books for making purchases, and encourage them to delve deep into the book reviews without being deceived by fraudulent manipulation.     

With a little help from my friends: Cultivating serendipity in online shopping environments

Many important findings and discoveries in science and everyday life are the result of serendipity, that is, the unanticipated occurrence of happy events such as the finding of valuable information. Consumers are increasingly seeking serendipity in online shopping, where information clutter and preprogramed recommendation systems can make product choice frustrating or mundane. However, it is notoriously difficult to design online shopping environments that induce it. In this study, we explore how social media affordances such as obtaining access to peer-generated content and being connected to online friends can help create the right conditions for serendipity in online shopping. We supplement this analysis with an account of two individual factors that are also likely to be instrumental in a shopping context, namely, the intensity of shoppers’ information search and their aversion to risk when faced with a product choice. Our investigation relies on a conceptualization of serendipity that has two defining elements: unexpectedness and informational value. The results of an experimental study in which we manipulated an online product search environment reveal the superiority of designs that incorporate online friendships, and these results support the positive effects of search effort and risk aversion on serendipity. This study contributes by developing a theoretical framework for the analysis of serendipity and by explaining how social commerce, that is, the integration of social media and electronic commerce, can cultivate serendipity.     

“Highly Recommended!” The Content Characteristics and Perceived Usefulness of Online Consumer Reviews

The aim of the present study was to gain a better understanding of the content characteristics that make online consumer reviews a useful source of consumer information. To this end, we content analyzed reviews of experience and search products posted on Amazon.com (N = 400). The insights derived from this content analysis were linked with the proportion of ‘useful’ votes that reviews received from fellow consumers. The results show that content characteristics are paramount to understanding the perceived usefulness of reviews. Specifically, argumentation (density and diversity) served as a significant predictor of perceived usefulness, as did review valence although this latter effect was contingent on the type of product (search or experience) being evaluated in reviews. The presence of expertise claims appeared to be weakly related to the perceived usefulness of reviews. The broader theoretical, methodological and practical implications of these findings are discussed.     

Product ranking using hierarchical aspect structures

Product-related comparative reviews are one of the most helpful information sources for consumers to rank the competing products and make purchase decisions. The comparative reviews are even more valuable if they are concerning specific aspects. However, the fact that very few comparative reviews express direct opinions on product aspects makes aspect-based product ranking a difficult task. In this paper, we present a novel hierarchical aspect-based product ranking approach. We first mine aspect-based pairwise comparative opinions from both user reviews on multiple review websites and community-based question answering pairs containing product comparison information. Next, we use our hierarchical structure-based model to propagate and reassign the aspect-based comparative opinions by using the parent-child and sibling relations between aspects in the product aspect hierarchy. The structure-based model helps to address the data sparsity issue of very few or no comparative reviews for some aspects. Finally, we employ graph-based ordering algorithms to consolidate these reassigned pairwise opinions into listwise comparison results. Experiments on a set of candidate electronic products prove that the proposed approach is effective for aspect-based product ranking.     

The effect of negative online consumer reviews on product attitude: An information processing view

Online consumer reviews provide product information and recommendations from the customer perspective. This study investigates the effects of negative online consumer reviews on consumer product attitude. In particular, it examines the proportion and quality of negative online consumer reviews from the perspective of information processing. The elaboration likelihood model is used to explain the persuasive effect of the proportion and quality depending on product involvement. A high proportion of negative online consumer reviews elicits a conformity effect. As the proportion of negative online consumer reviews increases, high-involvement consumers tend to conform to the perspective of reviewers, depending on the quality of the negative online consumer reviews; in contrast, low-involvement consumers tend to conform to the perspective of reviewers regardless of the quality of the negative online consumer reviews. The experiment in this study uses 248 college students in Korea. The proposed hypotheses are tested by three-way analysis of covariance.     

Please advise: using the Internet for health and financial advice

The Internet is a popular source of information and advice especially within the fields of health and finance. Previous research has raised the issue of quality with respect to online information and has suggested differences between the way consumers and experts search for and appraise online information. However, many studies have asked students to act as ‘consumers’ or have relied upon artificial search tasks. This paper reports on research using ‘genuine’ consumers. The first study examines the trust markers held by genuine consumers in both the health and finance domains. The second study explores the perceptions of people who have actually used sources of online advice. The results indicate similarities between the trust markers of genuine consumers and experts. Trust markers differed between the two domains of health and finance and this was revealed in terms of the features of the sites visited. Genuine consumers may have different requirements and may be under different pressures compared to expert evaluators.     

Exploring the relationship between information satisfaction and flow in the context of consumers’ online search

The study investigate the subjective aspect of consumers’ online information satisfaction within the frame of flow experience in two processes: ongoing and goal-directed information search. A total of 391 samples for ongoing processes and 415 samples for goal-directed processes obtained in this study were analyzed with structural equation modelling. Flow is conceptualized in the study with Enjoyment, Time Distortion, Curiosity, Perceived Control and Concentration dimensions. The results indicate that flow experience has significant effects on consumers’ online information satisfaction in both processes. Enjoyment, Time distortion, Curiosity and Perceived Control dimensions affect online information satisfaction positively in the ongoing process, which is largely carried out with hedonic urges. In addition to Enjoyment, Perceived Control and Concentration dimensions have positive and Curiosity dimension has negative effects in goal-directed online information satisfaction, which is largely carried out with utilitarian urges. In addition, the results indicate that Enjoyment, Time distortion and Curiosity dimensions have significantly stronger positive effects on online information satisfaction in ongoing search processes compared with goal-directed processes, and Concentration dimension has significantly stronger positive effects on online information satisfaction in goal-directed search processes compared with ongoing processes.     

Selecting the most helpful answers in online health question answering communities

The online question answering (QA) community has been popular in recent years. In this paper, we focus on the online health question answering (HQA) community. The HQA community provides a platform for health consumers to inquire about health information. There are two ways to use this platform. One is to post a question and wait for answers to be provided by authenticated doctors. The other is to search for relevant questions with answers. For the latter, health consumers may prefer an accepted answer marked by the previous health consumer. However, there is a large proportion of questions without an accepted answer and it is inconvenient for people who want to search for relevant questions. To address this issue, we aim to select high-quality answers from the answers without marked accepted answers. We propose a deep learning approach to achieve this goal. To train the model for the prediction of answer quality, we first view the accepted answer as the positive answer and propose a method to label the negative answer. Next, we capture the semantic information on the question and the answer by the deep learning structure. We then combine the information to predict the quality score of the answer. We collect data from one of the biggest Chinese HQA community and divide them into groups by the medical departments for detailed analysis. Finally, we conduct experiments to show the effectiveness of categorization and the labeling method. The results show that our approach outperforms other studies and we further research into the differences among the results of different categories.