Under Interruptive Effects of Rarity and Mental Accounting, Whether the Online Purchase Intention Can Still Be Enhanced Even with Higher Search Costs and Perceived Risk

Shu-Yi Liaw,Thi Mai Le

doi:10.5539/ijbm.v12n8p160

Abstract

The purpose of this study was to explore the impact of search costs and perceived risk to online buying intention under the moderators of rarity and mental accounting in marketing practices. In this study, four types of online products food, toys, travelling and clothing were divided into pre-test and post-test to observe the rarity and mental accounting conditions. To investigate this study a survey was conducted with a sample size of 473 college students. The results found that (1) without moderators, search costs and perceived risk had no significant effects on purchase intention but had a positive significant effect on purchase intention under the interruptive effects of rarity and mental accounting. (2) In rarity moderator, online customers are more sensitive to limited time than limited quantity. (3) In mental accounting interruption, pay less and get more had significant moderating effects. (4) Limited time and get more had the highest contribution to an improvement in purchase intention. Contributions of this study provide to relevant businesses or network operators considerations of rarity and mental accounting in online promotion strategy implementation.

Highlights

Due to changing consumption habits, the behavior of shopping gradually transformed from online shopping convenience to consumers paying attention to their shopping efficiency
This study focuses on the impact of search costs and the perceived risk on the purchase intention when consumers are making online purchases under time rarity and mental accounting conditions
Search costs and perceived risk are positively correlated and have a significant effect on customers the purchase intention. These results indicate that the subjects in the case of rarity effect, no matter how high search costs or perceived risk is, they will be willing to buy

Summary

Introduction

Due to changing consumption habits, the behavior of shopping gradually transformed from online shopping convenience to consumers paying attention to their shopping efficiency. Considering the time it takes to find a product for purchase and online transactions security. For example: missing information, product not meeting expectation, losing personal data and lengthy delivery time. These consequences may make consumers feel unpleasant, leading to perceived risks of online shopping. Thaler (1985) created a new model for consumer behavior based on cognitive psychology to design a corresponding promotional technique which improved customers’ mindset on a product’s value and make consumers feel happier The suppliers do forward in many marketing strategies, such as improving customer demand for its products or limited number of products which lead rarity of products and customers want to meet their demand, they must pay a higher price (Verhallen, 1982). Thaler (1985) created a new model for consumer behavior based on cognitive psychology to design a corresponding promotional technique which improved customers’ mindset on a product’s value and make consumers feel happier

Objectives

Methods

Results

Conclusion