• Title/Summary/Keyword: Online Purchase Decision

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A Study of the Influence of Online Word-of-Mouth on the Customer Purchase Intention (온라인 구전정보가 소비자 구매의도에 미치는 영향에 대한 실증연구: 제품관여도, 조절초점, 자기효능감의 조절효과를 중심으로)

  • Yoo, Chang Jo;Ahn, Kwang Ho;Park, Sung Whi
    • Asia Marketing Journal
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    • v.13 no.3
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    • pp.209-231
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    • 2011
  • Internet is having strong impact on the consumer's decision making process. Information search has been done actively through internet today. The online reviews can be crucial information cue to evaluate the alternarive products. The online WOM(Word-Of-Mouth) effect depends on the characteristics of information sender, receiver, and WOM. This study is to examine the influence of the online word of mouth on the consumer purchase intention and the moderating role of product involvement, consumer regulatory focus and self-efficacy. Positive customer reviews on the products influence the purchase intention positively and negative customer reviews influence it negatively. Moderating role of involvement in the causal relation between the valence of online reviews and purchase intention is tested. In case of positive WOM, it is predicted that purchase intention for high involvement products is higher than that of low involvement. In case of negative WOM, purchase intention for high involvement product is lower than that of low involvement product. And this study invetigate the moderating role of regulatory focus. In case of positive WOM, it is predicted that promotion focus oriented consumers have higher purchase intention than prevention focus oriented consumers. In case of negative WOM, prediction is that prevention focus oriented consumers have lower purchase intention than promotion focus oriented consumers. Then we examine the moderating role of self efficacy in the causal relation between the valence of online reviews and purchase intention. In case of positive WOM, it is predicted that consumers with low self efficacy have higher purchase intention than consumers with high self efficacy. In case of negative WOM, it is predicted that consumers with low self efficacy have lower purchase intention than consumers with high self efficacy. Emprical results support our prediction and four hypotheses derived from our conceptual framework are all accepted. This study suggest that the level of product involvement, consumer regulatory focus and the level of self-efficacy influence the consumer responses of the valence of online reviews. Therefore marketers need to manage online reviews based on the level of product involvement, regulatory focus orientation and the level of self-efficacy of target consumers.

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A Factors Effecting Online Social Decisions in Online Consumer Behavior

  • HAN, Sang-Seol
    • Journal of Distribution Science
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    • v.18 no.3
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    • pp.67-76
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    • 2020
  • Purpose: Consumers are affected by the purchase of a large number of opinions or support during the online purchasing process. This can be defined as the term of 'social decisions' on line. This paper seeks to explore the factors of influence on social decisions in on-line environment and to study in depth. Methodology: The purpose of this paper is to empirically examine the impact of factors on online social decisions. To verify the hypothesis of study, This study collected 256 from Seoul City, Gyeonggi Province and Chungcheong Province through Survey. Results: According to the research results, First, eWOM information usefulness have a positive impact on online social decisions, Second, online network connectedness have a positive impact on online social decisions. Third, innovative product have a positive impact on online social decisions. and the lower the category of knowledge, the more inclined it is to make online social decisions. Finally, social decisions have a positive impact on purchasing decisions about product. It is most significant that academic research has advanced consumer behavior in response to recent changes in the consumption environment. It is meaningful that we have studied in depth the changing consumer decision process in online channel environment.

Effect of Brand Popularity in a Foreign Market on Consumer Behavior in a Franchise Cosmetic Retailer's Online Shop

  • KIM, Ji-Hern;GONG, Tae Gyung;AHN, So Jung
    • The Korean Journal of Franchise Management
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    • v.11 no.2
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    • pp.17-22
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    • 2020
  • Purpose: As consumers have difficulty in brand choice due to excessive information, using brand popularity as an advertising cue (e.g., Sales No. 1, Hit Product) has been getting more attention as an effective curation strategy for decreasing consumers' cognitive efforts. Accordingly, recent studies empirically demonstrate that consumers tend to prefer and choose a brand with a popularity cue and offer a useful information regarding how to use a popularity cue in marketing communication. However, extant research has mainly focused on investigating the impact of "brand popularity in a domestic market" on consumer behaviors. Thus, little is known about the effect of "brand popularity in a foreign market" on local consumers' decision-making process. Given that domestic consumers tend to purchase imported products from overseas countries, it can be meaningful information for global companies. Therefore, this research derives and tests the five hypotheses to examine how local consumers respond to brand popularity in a foreign market as an advertising cue. Specifically, it tests the three hypotheses regarding the direct and indirect effects of brand popularity in a foreign market on risk perception and purchase intention. Then, it tests two additional hypotheses about moderating effects of psychic distance on the relationship between brand popularity and risk perception as well as on the relationship between brand popularity and purchase intention. Seventy participants are exposed to an advertisement for an Indian cosmetic brand using a popularity cue in Indian market and answer the questions about brand evaluation. For data analysis, regression analysis is employed. The findings of this research show that perceived brand popularity lowers local consumers' perceived risk with a foreign brand. However, perceived brand popularity does not have a direct impact on purchase intention while it has an indirect effect through perceived risk. Meanwhile, psychic distance moderates the effect of perceived brand popularity on perceived risk level, but it has no impact on the relationship between brand popularity and purchase intention. This research is one of the first studies that demonstrate the positive impact of brand popularity in a foreign market on a local consumer's purchase decision, and it shows the effect can be moderated by psychic distance.

Customer Value Proposition Methodology Using Text Mining of Online Customer Reviews (온라인 고객 리뷰에 대한 텍스트마이닝을 활용한 고객가치제안 방법)

  • Han, Young-Kyung;Kim, Chul-Min;Park, Kwang-Ho
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.44 no.4
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    • pp.85-97
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    • 2021
  • Online consumer activities have increased considerably since the COVID-19 outbreak. For the products and services which have an impact on everyday life, online reviews and recommendations can play a significant role in consumer decision-making processes. Thus, to better serve their customers, online firms are required to build online-centric marketing strategies. Especially, it is essential to define core value of customers based on the online customer reviews and to propose these values to their customers. This study discovers specific perceived values of customers in regard to a certain product and service, using online customer reviews and proposes a customer value proposition methodology which enables online firms to develop more effective marketing strategies. In order to discover customers value, the methodology employs a text-mining technology, which combines a sentiment analysis and topic modeling. By the methodology, customer emotions and value factors can be more clearly defined. It is expected that online firms can better identify value elements of their respective customers, provide appropriate value propositions, and thus gain sustainable competitive advantage.

The Impact of Consumption Values on Environmentally Friendly Product Purchase Decision

  • LEE, Juyon
    • The Journal of Economics, Marketing and Management
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    • v.9 no.4
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    • pp.31-43
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    • 2021
  • Purpose: This study investigated how consumption values influence consumers' purchasing decisions regarding environmentally friendly products. Based on the Consumption Values Theory, six dimensions of consumption values were defined: functional value-quality, functional value-price, emotional value, social value, conditional value, and epistemic value. In particular, the current study analyzed the differential impact of the environmentally friendly consumption values between two consumer groups - users and nonusers. By doing so, more effective marketing strategies can be applied to the target groups. Research design, data, and methodology: The online survey was conducted through Macromill Embrain in Korea to collect data from users vs. nonusers of environmentally friendly products. There were 215 usable responses in the users sample and 225 responses in the nonusers sample. Structural equation modeling (SEM) was performed by using AMOS 18.0. Results: The results revealed that four dimensions of consumption values, i.e., functional value-price, emotional value, conditional value, and epistemic value, positively influenced the users, while functional value-price and epistemic value positively influenced purchase intention toward environmentally friendly products among the nonusers. Conclusions: These results have important implications for applying effective marketing strategies for target consumers. Theoretical and practical implications are also discussed.

Impact of Information Offering and Relational Benefits on Online Purchashing Intention of Cultural Products: Difference between Stage and Screen (정보제공과 관계혜택이 문화상품 온라인구매의도에 미치는 영향: 공연상품과 상영상품의 차이)

  • Cho, Se-Hyung
    • The Journal of the Korea Contents Association
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    • v.22 no.7
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    • pp.149-163
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    • 2022
  • With the development of the culture industry, online transactions of cultural products are being activated, and offering information and establishing relationship with customers in web-site have an important influence on online purchase decision making. The purpose of this research is to examine the effect of information and relational benefits provided by online sales sites of cultural products on online purchasing intention, and to reveal through empirical analysis whether these influences show a difference between stage products and screen products. Looking at the results of the study, first, in the case of the whole, both information offering and relational benefits have a significant effect on online purchasing intention. Second, in the case of stage products(plays), product understanding information, economic relational benefits, and customization relational benefits showed significant effects, but product purchasing information showed no significant influence. Third, in the case of screen products(movies), product purchasing information and economic relational benefits showed a significant effect, but product understanding information and customization relational benefits had no significant effect. In conclusion, the impact of information offering and relational benefits on online purchasing intention differs according to cultural products, and economic relational benefit is found to be an important influencing factor on online purchase decision making in all cases. These research results are expected to be helpful in establishing differentiated marketing strategies including customer relationship management in online transactions of cultural products.

Investigating Employee and Customer Perceptions on ICT Utilization: CRM and Policy Implications

  • YU, Eun Hye;CHO, Yooncheong
    • The Journal of Industrial Distribution & Business
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    • v.13 no.2
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    • pp.17-31
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    • 2022
  • Purpose: The purpose of this study is to analyze factors affected by the ICT utilization with perspectives of employees (Study 1) and customers (Study 2) that are rarely approached in previous studies. In particular, this study examined how proposed factors on ICT utilization affect employee satisfaction, organization performance, customer satisfaction, and purchasing decision making. Research design, data and methodology: This study conducted an online survey to measure the effects. Cronbach's alpha was applied to test reliability and factor analysis was applied to check validity. Multiple regression analysis and ANOVA were applied to test hypotheses. Results: The results of this study found that the effects of self-development and organizational innovation on employee satisfaction were significant for study 1, while the effects of product satisfaction, promotional offers, and customer communication on purchase decision making were significant for study 2. Conclusions:This study provides managerial and policy implications. At the management level, it is necessary to make specific strategies to improve employee and customer satisfaction and organization performance associated with the utilization of ICT. The results of this study suggest that better policy should be prepared by government to foster utilization of ICT infrastructure and to enhance better relationships with employees and customers.

Role of risk reduction strategies in shopping online for fashion products

  • Lee, Jung Eun;Lee, Kyu-Hye
    • The Research Journal of the Costume Culture
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    • v.21 no.1
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    • pp.129-138
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    • 2013
  • Consumers' perception of risk plays a major role in how they make online purchase decisions. Since online shopping is perceived to be riskier than in-store shopping, consumers engage in a variety of risk reduction strategies such as searching online for alternative products and alternative e-tailers. This study examines the influence of risk involvement on risk reduction strategies and customer satisfaction. It discusses three aspects of risk reduction strategies: time spent in making a purchasing decision, searching for alternative e-tailers, and searching for alternative products. Data from 294 female shoppers who had experience in purchasing fashion products online was analyzed. This study found that risk involvement had a positive influence on the time spent in making decisions, while the influence of risk involvement on searching for alternative retailers and alternative products was not significant. However, consumer satisfaction was negatively related to search for alternative retailers and positively related to risk involvement. This study provides a better understanding of customers' risk involvement and risk reduction strategies in online shopping. This information would be beneficial for marketers and retailers to reduce customer perception of risks and to promote online sales.

How Enduring Product Involvement and Perceived Risk Affect Consumers' Online Merchant Selection Process: The 'Required Trust Level' Perspective (지속적 관여도 및 인지된 위험이 소비자의 온라인 상인선택 프로세스에 미치는 영향에 관한 연구: 요구신뢰 수준 개념을 중심으로)

  • Hong, Il-Yoo B.;Lee, Jung-Min;Cho, Hwi-Hyung
    • Asia pacific journal of information systems
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    • v.22 no.1
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    • pp.29-52
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    • 2012
  • Consumers differ in the way they make a purchase. An audio mania would willingly make a bold, yet serious, decision to buy a top-of-the-line home theater system, while he is not interested in replacing his two-decade-old shabby car. On the contrary, an automobile enthusiast wouldn't mind spending forty thousand dollars to buy a new Jaguar convertible, yet cares little about his junky component system. It is product involvement that helps us explain such differences among individuals in the purchase style. Product involvement refers to the extent to which a product is perceived to be important to a consumer (Zaichkowsky, 2001). Product involvement is an important factor that strongly influences consumer's purchase decision-making process, and thus has been of prime interest to consumer behavior researchers. Furthermore, researchers found that involvement is closely related to perceived risk (Dholakia, 2001). While abundant research exists addressing how product involvement relates to overall perceived risk, little attention has been paid to the relationship between involvement and different types of perceived risk in an electronic commerce setting. Given that perceived risk can be a substantial barrier to the online purchase (Jarvenpaa, 2000), research addressing such an issue will offer useful implications on what specific types of perceived risk an online firm should focus on mitigating if it is to increase sales to a fullest potential. Meanwhile, past research has focused on such consumer responses as information search and dissemination as a consequence of involvement, neglecting other behavioral responses like online merchant selection. For one example, will a consumer seriously considering the purchase of a pricey Guzzi bag perceive a great degree of risk associated with online buying and therefore choose to buy it from a digital storefront rather than from an online marketplace to mitigate risk? Will a consumer require greater trust on the part of the online merchant when the perceived risk of online buying is rather high? We intend to find answers to these research questions through an empirical study. This paper explores the impact of enduring product involvement and perceived risks on required trust level, and further on online merchant choice. For the purpose of the research, five types or components of perceived risk are taken into consideration, including financial, performance, delivery, psychological, and social risks. A research model has been built around the constructs under consideration, and 12 hypotheses have been developed based on the research model to examine the relationships between enduring involvement and five components of perceived risk, between five components of perceived risk and required trust level, between enduring involvement and required trust level, and finally between required trust level and preference toward an e-tailer. To attain our research objectives, we conducted an empirical analysis consisting of two phases of data collection: a pilot test and main survey. The pilot test was conducted using 25 college students to ensure that the questionnaire items are clear and straightforward. Then the main survey was conducted using 295 college students at a major university for nine days between December 13, 2010 and December 21, 2010. The measures employed to test the model included eight constructs: (1) enduring involvement, (2) financial risk, (3) performance risk, (4) delivery risk, (5) psychological risk, (6) social risk, (7) required trust level, (8) preference toward an e-tailer. The statistical package, SPSS 17.0, was used to test the internal consistency among the items within the individual measures. Based on the Cronbach's ${\alpha}$ coefficients of the individual measure, the reliability of all the variables is supported. Meanwhile, the Amos 18.0 package was employed to perform a confirmatory factor analysis designed to assess the unidimensionality of the measures. The goodness of fit for the measurement model was satisfied. Unidimensionality was tested using convergent, discriminant, and nomological validity. The statistical evidences proved that the three types of validity were all satisfied. Now the structured equation modeling technique was used to analyze the individual paths along the relationships among the research constructs. The results indicated that enduring involvement has significant positive relationships with all the five components of perceived risk, while only performance risk is significantly related to trust level required by consumers for purchase. It can be inferred from the findings that product performance problems are mostly likely to occur when a merchant behaves in an opportunistic manner. Positive relationships were also found between involvement and required trust level and between required trust level and online merchant choice. Enduring involvement is concerned with the pleasure a consumer derives from a product class and/or with the desire for knowledge for the product class, and thus is likely to motivate the consumer to look for ways of mitigating perceived risk by requiring a higher level of trust on the part of the online merchant. Likewise, a consumer requiring a high level of trust on the merchant will choose a digital storefront rather than an e-marketplace, since a digital storefront is believed to be trustworthier than an e-marketplace, as it fulfills orders by itself rather than acting as an intermediary. The findings of the present research provide both academic and practical implications. The first academic implication is that enduring product involvement is a strong motivator of consumer responses, especially the selection of a merchant, in the context of electronic shopping. Secondly, academicians are advised to pay attention to the finding that an individual component or type of perceived risk can be used as an important research construct, since it would allow one to pinpoint the specific types of risk that are influenced by antecedents or that influence consequents. Meanwhile, our research provides implications useful for online merchants (both online storefronts and e-marketplaces). Merchants may develop strategies to attract consumers by managing perceived performance risk involved in purchase decisions, since it was found to have significant positive relationship with the level of trust required by a consumer on the part of the merchant. One way to manage performance risk would be to thoroughly examine the product before shipping to ensure that it has no deficiencies or flaws. Secondly, digital storefronts are advised to focus on symbolic goods (e.g., cars, cell phones, fashion outfits, and handbags) in which consumers are relatively more involved than others, whereas e- marketplaces should put their emphasis on non-symbolic goods (e.g., drinks, books, MP3 players, and bike accessories).

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A Study on an effect of Online-Word-of-Mouth and Brand Relationship Quality on Consumer's decision making to purchase (온라인 구전과 브랜드 관계의 질적 요인이 소비자 구매 의도에 미치는 영향)

  • Bae, Soon Han;Jeon, Joong Yang;Park, Jong Soon
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.7 no.3
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    • pp.175-187
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    • 2011
  • People could be effected by other's recommendations when they are in making decision to buy something. This phenomenon was called as 'word of mouth effect' and proved to be very significant to change consumer's attitude because of a lack of information about products or services what they needed. And also there are two kinds of views about Brand communication. One is that Brand communication would be weakening due to less cost to search information. the other is that Brand communication would be strengthen because of a lack of sensibility to product. Therefore, the purpose of this study is to examine the function of online word of month and the effect of brand communication by adopting a concept of BRQ. As The results, First, Online word of mouth have significantly effected on consumer's attitude even though those information are all texts and have been suspicious if it is true or not. Second, consumer brand relationship quality have a influence on consumer's attitude. In conclusion, This study would give implications for companies to build marketing strategies.