• Management Science and Financial Engineering
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• v.20 no.2
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• pp.27-31
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• 2014

This paper studies the assortment optimization problem in online retailing by using a multinomial logit model in order to take consumer choice behavior into account. We focus on two unique features of online purchase behavior: first, there exists increased amount of uncertainty (e.g., size and color of merchandize) in online shopping as customers cannot experience merchandize directly. This uncertainty is captured by the scale parameter of a Gumbel distribution; second, online shopping entails unique shopping-related disutility (e.g., waiting time for delivery and security concerns) compared to offline shopping. This disutility is controlled by the changes in the observed part of utility function in our model. The impact of changes in uncertainty and disutility on the expected profit does not exhibit obvious structure: the expected profit may increase or decrease depending on the assortment. However, by analyzing the structure of the optimal assortment based on convexity property of the profit function, we show that the cardinality of the optimal assortment decreases and the maximum expected profit increases as uncertainty or disutility decreases. Therefore, our study suggests that it is important for managers of online retailing to reduce uncertainty and disutility involved in online purchase process.

• Journal of Information Technology Services
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• v.8 no.2
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• pp.205-228
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• 2009

This paper examines how online product information changes the customers' purchase intentions from subjectivity-objectivity dichotomy perspective. Quality and Preference are proposed as product evaluation criteria and their marginal changes with product information differentiation are hypothesized. An experimental survey was conducted to 57 subjects and the hypotheses were partially supported through PLS path comparison method. The study contributes to IS research by proposing a simple and effective product evaluation framework and by abstracting the impact of product information from other factors. Finally, we suggest the utilization of product information with the optimization of the cost-benefit structure between information and purchase intention.

• Journal of Distribution Science
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• v.16 no.7
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• pp.57-65
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• 2018

Purpose - Recently, internet access and social network utilization using smart phone are increasing. In such a smart environment, interactive activities such as information generation, information searching and information sending are increasing rapidly on-line environment. Therefore, consumers tend to purchase something according to eWOM and also meet the social consensus online environment. In connectivity society, consumers became accessible and engaged in the opinions of others easily. Many decisions that seem like personal decisions are actually social decisions on online connectivity. This paper seeks to explore factors that can help generate a social decision on purchasing of new products in an online environment. Research design, data, and methodology - The process of collecting a lot of wisdom and making an agreement online is called social decision. The purpose of this paper is to examine empirically the influence of factors such as online ties, online eWOM expectancy and online information behavior on online social decision. In addition, We studied online social decision by analyzing the moderating effect of new product innovation. To understand this structural relationship, research hypotheses and research models were set up and empirical analysis was conducted. In order to verify the hypothesis, 208 questionnaires were collected from the residents of Seoul city/Gyeonggi province. The answered questionnaire verifies reliability and validity using SPSS/AMOS and test hypotheses through path analysis and multiple regression analysis. Results - According to the research results, First, online ties don't have a positive impact on online social decision, Second, online eWOM expectancy have a positive impact on online social decision. Third, online information behaviors have a positive impact on online social decision. The degree of innovation of new products have a moderating effect between Independent variables of three factors and dependent variable of social decision. Conclusions - Social decisions have a positive impact on purchasing decisions about new product. There is a great significance in the fact that the online social influence and online social decision have been studied academically. It is meaningful that we have studied in depth the changing phenomenon of consumer purchase decision process in smart environment. The results of these studies provide academic and practical implications.

• Journal of Venture Innovation
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• v.5 no.2
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• pp.49-66
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• 2022

This study intends to examine how the perception of covid-19 risk affects consumers' consumption behavior based on previous studies in a situation where the spread of covid-19 is prolonged. This study demonstrates how consumers' perception of covid-19 risk affects online and offline consumption behavior through the perceived severity, perceived vulnerability, coping effectiveness, and self-efficacy of the revised protective motivation theory (Rogers, 1983). We want to test it through analysis. In order to achieve the purpose of this study, consumers living in Seoul and Gyeonggi Province who have purchased within the past 3 months were selected as a sample. In addition, variable data such as risk perception of covid-19, perceived severity, perceived vulnerability, coping effectiveness, self-efficacy, online purchase attitude and purchase intention, offline purchase attitude and purchase intention were collected through the questionnaire.A total of 363 copies of valid responses were tested to test the hypothesis of the relationship between variables through the covariance structure model. The analysis results of this study were first, that covid-19 risk perception had a significant positive (+) effect on perceived severity, perceived vulnerability, and coping effectiveness. Second, perceived severity and perceived vulnerability were found to have a significant positive (+) effect on offline purchasing attitude. Third, perceived severity, perceived vulnerability, coping plan effectiveness, and self-efficacy were all found to have significant positive (+) effects on online purchase attitude. Finally, it was found that offline purchase attitude and online purchase attitude had a significant positive (+) effect on offline purchase intention and online purchase intention, respectively. Also, it was found that online purchase attitude had a negative (-) effect on offline purchase intention. The results of this analysis will provide meaningful implications for the establishment of strategies for distribution channels according to the social risk of infectious diseases.

• Asia pacific journal of information systems
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• v.13 no.2
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• pp.119-143
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• 2003

Trust has been identified as a key component in many e-Commerce studies. The purpose of this study is to find out which factors play a major role in building trust and how the built-up trust affect consumer's purchase intention in Internet used-car transactions. Based on the information asymmetry, TAM(Technology Acceptance Model), and the trust theory, our research model includes factors such as a buyer's propensity-to-trust, institutional characteristics(inspection and warranty policy), word-of-mouth referral, perceived size, and perceived benefits as independent variables. The model also includes trust as a mediate variable, intention to purchase as a dependent variable and perceived quality risk as a moderate variable. The research model is tested by analyzing 787 sample data gathered from Internet used-car transaction sites. The result shows that the trust has significant effects on the online purchase intention, and institutional characteristics has been identified as the most significant factor for the trust of Internet used-car sites. The independent factors influencing trust vary depending on the level of perceived quality risk. For users who perceive the quality risk low, the perceived benefits explain a little portion of the purchase intention. However, those who perceive quality risk high would purchase used-cars only when they have trust on the Internet sites, indicating that trust play an important role as a mediate variable. This study suggests that enhancing the trust in Internet used-car sites is important to increase online transactions.

• Journal of Distribution Science
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• v.17 no.8
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• pp.45-56
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• 2019

Purpose - This study aimed at investigating the mediation roles of attitude dimensions in the effects of involvement type on hedonic product purchase intention and moderation role of lay rationalism in the effects of involvement type on attitude dimensions. Research design, data, and Methodology - "Wenjuanxing" was used online to make questionnaire, which was loaded on Wechat and QQ. 125 data were collected online in China. The Process macro model 58 including moderation of the two paths in the causal sequence was used to verify hypotheses. Results and Conclusions - First, cognitive (affective) involvement had positive effect on the utilitarian (hedonic) dimension of consumer attitude and the purchase intention. Second, hedonic dimension of attitude had positive effects on purchase intention, but utilitarian dimension of attitude had not significant positive effects on purchase intention. Third, Lay rationalism did decrease (did not increase) the positive effects of affective (cognitive) involvement on hedonic (utilitarian) dimension of attitude. Therefore Marketing managers should understand the differences between the cognitive involvement and affective involvement, and develop the ways by which they attract consumers to choose their hedonic product. And they should give affective (cognitive) information to the customers with low (high) rationalism consumers when they do marketing for their hedonic product.

• Asian Journal of Business Environment
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• v.8 no.3
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• pp.5-12
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• 2018

Purpose - The purpose of current paper is to identify features of advertisements at social media that generate the ad-click and to further identify if these advertisements lead to purchase. If no purchase is made, then reasons for not making purchase are identified. Users' purchase experience after users clicked at advertisements are also studied. Research design, data, and methodology - Research design followed is exploratory research, where various factors leading to ad-clicks and generating purchase at social media platform were explored. Raw data was gathered by means of survey among a sample of 185 respondents in India using online structured questionnaire. GLM model and multinomial regression were used to analyze the data. Results - Several factors including endorsement by friends, advertisement aesthetics, product reviews, and aggressive pricing played major role in generating ad-clicks. Major impediment to purchase on were product misrepresentation in advertisement, false discounts, and site security. Female users clicked more on social media advertisements and made more purchases compared to their male counterpart. Conclusions - Social media advertisements have significant positive effect on buying behavior of online customers. Transactions culminating from social media ad-click generated significant positive experience for social media users. Thus, social media can be effective marketing tool.

• Journal of Distribution Science
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• v.21 no.7
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• pp.73-82
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• 2023

Purpose: Social networking services have been recognized as an attractive distribution channel at a time when efforts to deliver effective messages to consumers are essential amid a flood of advertisements in the multi-media era. In that sense, this study investigated the effect of the scarcity message type (limited-time vs. limited-quantity) and sender type (corporate vs. consumer) on the intention to purchase golf equipment by Instagram distribution channel. Research design, data and methodology: Data from 108 college students in their 20s and 30s with experience using Instagram were collected online through convenience sampling. A frequency analysis, exploratory factor analysis, reliability analysis, independent sample t-test, and two-way analysis of variance were performed using SPSS 23.0. Results: The results showed that limited-quantity messages induce a higher purchase intention than limited-time messages. Similarly, consumer-sent advertisements induce a higher purchase intention than corporate-sent advertisements. Further, there is no statistically significant interaction effect of the scarcity message type and sender type on the intention to purchase golf equipment. Conclusions: This study is meaningful in verifying consumers' purchase intention depending on the type of scarcity message and the type of sender in Instagram advertisements. The results yield significant implications for marketers and several directions for future research.

• Fashion & Textile Research Journal
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• v.18 no.3
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• pp.317-326
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• 2016

The main purposes of this study were to segment Chinese consumers who purchase fashion products through internet commerce according to internet shopping values, to compare their online word-of-mouth acceptance and dissemination behavior, and to examine the demographic characteristics and purchase behavior of the segments. 715 questionnaires were collected through internet survey from January $19^{th}$ to March $16^{th}$, 2015 and a total of 488 were used for the final data analysis. The respondents were twenty to thirty nine years old men and women living in all over China. Hedonic and utilitarian shopping values were identified through factor analysis and based on the shopping values, the respondents were categorized into four groups-ambivalent shopping value group, hedonic shopping value group, utilitarian shopping value group and indifferent group. Among these groups, there were significant differences in terms of online word-of-mouth acceptance as well as dissemination level and motivation. In overall, ambivalent shopping value group showed high online word-of-mouth acceptance as well as dissemination motivation. The groups also showed significant differences in clothing selection criteria, frequently purchased internet shopping sites, online clothing shopping frequency and information sources. The groups also differed in terms of age, residential area, education level, occupation and income. However, there were no significant differences in gender and marital status among the groups.

• Information Systems Review
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• v.15 no.1
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• pp.69-89
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• 2013

This study examined the factors influencing participation of online community and intention of joint purchase in Korea and China. The online community member actively participate the social activities that can cause the effective communication characters and the great support of the society. In these two factors, the sense of worth related with compensation, norm, interaction, shared values will be taken as the independent variables. These variables as a parameter are related with the intention of joint purchase. To be aware of their behavior norm, interaction, compensation, shared value, these factors will be taken as predicting their behaviors in the online community and their further participating, commitment and co-shopping intention. As the results, compensation, norms, interaction, shared values had significant effects on the participation of online community, and this affected the intention of joint purchase in online community. Compensation and norm were significant in Korean sample. Implications and further direction are suggested on the base of the results.