Journal of Interactive Marketing

Review score information can be presented in different formats. In three online experiments, we examined consumers’ behavior in the context of review scores presented in a disaggregated format (individual review scores observed sequentially and individually), an aggregated format (review scores summarized into a frequency distribution chart), or both together. Participants tended to attribute outlier review scores to reviewer rather than product reasons. This tendency was more prevalent when reviews were presented in disaggregated format. Moreover, reviews attributed to reviewer reasons tended to be perceived with low credibility. When presented with a choice between two products with equal average review scores but different variances, participants chose as if outlier review scores were discounted when scores were presented in the disaggregated format. This tendency emerged even when disaggregated and aggregated formats were presented together. The number of review scores moderated the effect of format on choice. We argue that disaggregated information allows consumers to better track the number of outliers and, when the number of outliers is small, prompts them to attribute these outliers to reviewer reasons, and subsequently discount them.

Social media usage has become ubiquitous, and organizations need to manage this tool to meet their strategic goals. Companies are finding it necessary to modify their approach to customer relationship management (CRM) and develop new marketing capabilities that facilitate customer satisfaction. The purpose of this study is to examine how social media usage can help firms build new CRM capabilities and thus improve marketing adoption strategies and business performance. We suggest that social CRM capability is critical when companies merge social media into their marketing strategies to improve customer engagement and firm performance. We empirically analyze data from 232 companies using Facebook, COMPUSTAT North America, and Global Fundamentals annual databases for the period 2004–2014. This study contributes to extant literature by confirming a new form of CRM capabilities – social CRM – using the resource-based view and dynamic capabilities theory frameworks, and by demonstrating that social media usage plays a moderating role by amplifying the positive impact of social CRM capabilities on firm performance.

Consumers’ personal information often informs retailers’ marketing efforts in terms of creating value in the online marketplace. This study examines four factors related to consumers’ social media engagement and online privacy protection behaviors. Regulatory focus, social exchange, and marketing relationship theories explain the online consumer personal information share-and-protect model developed. Consumers aged 18–64 years across the United States participated in this survey research. The results suggest that while personal privacy violation experience and perceived secondary control of one's personal information are influential antecedents, privacy concerns and trust in social media websites mediate each of these respectively. The findings suggest that promotion- and prevention-related behaviors regarding personal information align with the orientation of the antecedents, indicating that regulatory focus theory shows promise for examining the privacy paradox. We conclude by developing a matrix that integrates regulatory focus and social exchange theories to guide future research.

Little is known about the influence of motivators that drive consumers to grant permission to be contacted via personalized communication. In this study, a framework is developed to investigate the effect of select drivers of consumers granting permission to receive personalized messages. The authors distinguish between drivers related to benefit and cost to the consumers. They identify the influence of perceived personal relevance, entertainment, and consumer information control as well as monetary incentives and lottery participation as benefit-related factors. Cost-related factors entail the registration process, privacy concerns, and perceived intrusiveness. The authors find that, except for monetary incentives and lottery participation, the identified drivers significantly influence consumers’ decision to grant permission. The strong negative influence of privacy concerns on the probability of granting permission can be lessened by two benefit-related factors, namely message content with entertainment value or personal relevance for the consumer. The study helps to improve firm measures aimed at getting more permissions — granted by customers for interactive campaigns.

Smartphones have penetrated rapidly and mobile shopping provides promising market opportunities for retailers. However, little is known about mobile shopping patterns and inferring these patterns from online shopping may provide misleading insights. We combine mobile log data and a mobile panel survey, and examine two stages in mobile shopping: the possession of shopping applications (hereafter, apps) and the purchase via shopping apps. Our exploratory investigation of mobile data and its empirical analyses provide three substantive findings. First, online experience and mobile experience both positively relate to the possession of shopping apps. Second, browsing behavior for non-shopping apps helps understand the possession of shopping apps as it reflects user preferences for acquiring more apps. Third, purchasing decisions are explained by digital experience (i.e., online experience and mobile experience) and browsing information from shopping apps, with other factors being of little predictive value. The implications for mobile retailing research and practice are discussed.

Shoppers of multi-channel retailers often place orders using different channels on different shopping occasions. The differential use of channels is related to both basket composition and channel characteristics, such as the ability of the channel to provide additional information that resolves uncertainty about the purchase. In this paper, we examine the impact of basket composition on the choice among direct channels. We develop a two-stage, shopping cost model with two, latent states. Given a shopping basket, the shopper first decides if she needs additional information about items in the basket. If she is uncertain about the items in the basket meeting her needs, she uses an information rich channel, such as the retailer's website or call center, and risk reduction costs become salient in addition to the other shopping costs. If she does not require additional information, she places her order by choosing among all available channels, and she may incur a welfare loss from making a purchase that does not optimally meet her needs. We operationalize welfare loss with Shannon information and various metrics based on purchase history.

Our empirical setting is a data set from a catalog retailer that offers multiple direct channels. Our estimates show that basket composition impacts channel choice. Large baskets shift to the Internet channel, suggesting that the Internet channel has lower ordering costs. High-risk baskets shift to call centers and this suggests that the call center has lower risk reduction costs. Collectively these estimates provide evidence for the notion of channel specialization—some channels are better at addressing certain shopping costs compared to others. Our estimates also show that electronic self-service channels have high initial access costs and a significant learning curve compared to the call center suggesting that these channels might be better suited to heavy users. We use the estimated model to quantify the value of channels, to identify categories that need risk reduction, and to segment and target shoppers for Internet ordering based on basket size and the potential to accumulate experience.

This study evaluates the effectiveness of augmented reality (AR) as an e-commerce tool using two products — sunglasses and watches. Study 1 explores the effectiveness of AR by comparing it to a conventional website. The results show that AR provides effective communication benefits by generating greater novelty, immersion, enjoyment, and usefulness, resulting in positive attitudes toward medium and purchase intention, compared to the web-based product presentations. Study 2 compares the paths by which consumers evaluate products through AR versus web with a focus on interactivity and vividness. It is revealed that immersion mediates the relationship between interactivity/vividness and two outcome variables — usefulness and enjoyment in the AR condition compared to the web condition where no significant paths between interactivity and immersion and between previous media experience and media novelty are found. Participants’ subjective opinions about AR are examined through opinion mining to better understand consumer responses to AR.

Online brand messaging, e.g., blogging or posting on social media platforms, has an important role in digital marketing strategy. Such messaging is largely text based and provides an opportunity for brands to interact with many consumers simultaneously. The marketing literature, however, has yet to provide sufficient guidance on effective online brand messaging strategies. In particular, research has yet to address how the inclusion of second person pronouns in online brand messaging affects relevant consumer outcomes. The present research proposes that second person pronouns should work to enhance consumer involvement and brand attitude as a result of increasing the extent that consumers engage in self-referencing. A field study involving actual brand posts on Facebook and two subsequent experiments provide support for this hypothesis. In addition, drawing on cultural dimensions theory, individual levels of collectivism are identified as a boundary condition. The presence (vs. absence) of second person pronouns in online brand messaging enhances involvement and brand attitude for consumers that are lower, but not higher, in collectivism. The results provide marketers with needed guidance for creating effective online brand messaging.