Novice Customers Research Articles

Effect of Counterfeits and Fake Reviews in Markets for Credence Goods

Counterfeits are a persistent problem in online marketplaces, in particular regarding credence goods (e.g., nutritional supplements), as their qualities are difficult or impossible to evaluate even after consumption. Concerned about product quality, customers frequently rely on external signals, such as product badges based on ratings. However, even product ratings are not foolproof as unethical sellers may acquire fake positive reviews to exploit product ratings and badge systems. To analyze the impact fake reviews have on credence goods, we consider a two-stage competition between an authentic seller and a deceptive counterfeiter. The market consists of two types of consumers: savvy customers, who understand that endorsement badges are product-dependent and not seller-dependent, and novice customers, who mistakenly believe product badges testify to a seller's authenticity. In the first stage, both sellers simultaneously decide on whether to acquire fake reviews, which partially influences if the product receives an endorsement badge. In the second stage, both sellers simultaneously set their prices and customers make purchasing decisions. Our results indicate that, in equilibrium, the authentic seller does not acquire fake reviews, while the counterfeiter may do so to mislead customers. Moreover, the amount of fake reviews is decreasing in the fraction of savvy consumers, suggesting that online platforms can combat fake reviews by, for instance, clearly highlighting that badges are product-dependent. We also find that having the option to acquire fake reviews may benefit both sellers but always hurts consumers, emphasizing the need for regulation to protect consumers.

Starting conversations with new customers: a research note on the moderating effect of experience on responses to small talk

In this research note, we explore when salespeople should begin conversations with new customers with small talk. During initial meetings with customers, salespeople can choose to begin with small talk about topics not related to the task to break the ice or they can move straight to business and provide task-relevant information. Both approaches have garnered some support from different literature streams, and it remains unclear which approach is best. In two experiments with 399 and 365 respondents respectively, we compare customers’ responses to small talk versus task talk initiated by salespeople during an initial meeting. We consider whether the customer’s previous level of experience with the offering category moderates the effects and explore an explanatory mechanism for why this occurs. Findings indicate that customers’ responses to small talk versus task talk vary depending on their level of experience. When the salesperson starts with small talk, novice customers’ intentions to do business with the salesperson increase because small talk makes them feel more comfortable. We conclude that salespeople should consider a customers’ level of experience and adapt their communication tactics accordingly.

Combating Copycats in the Supply Chain with Permissioned Blockchain Technology

The phenomenon of copycats is common in a wide range of industries. Recently, to indicate product authenticity and combat copycats, many brand name companies (BNCs) have started selling products through retailers. These BNCs deploy a scalable protocol that is integrated into a permissioned blockchain technology (PBT) platform. We examine how PBT combats copycats in the supply chain and how it benefits BNCs. Although PBT implementation helps novice customers identify product authenticity and the real quality of products, that is, to take advantage of a quality disclosure effect, we show that, if and only if the number of novice customers is large enough, then selling through a PBT retailer can effectively combat copycats. Thus, PBT increases the profit of the BNC, consumer surplus, social welfare, and reduces the profit of a copycat. Moreover, conventional wisdom tells us that PBT ensures supply chain transparency and motivates a firm to improve its product quality. However, the BNC reduces the quality of its products when using PBT, because an improvement in product quality is not profitable if consumers can distinguish between genuine and imitation products. Furthermore, we extend the model by considering the case where the BNC itself implements PBT. Without the double marginalization effect, even if the number of novice customers is small, blockchain technology may exist in the market (the BNC self‐implements). In addition, if the unit production cost of a genuine product is large enough, social welfare increases when production cost increases.

The Impact of the Innovative Knowledge of Customers on Their Recommendation Intentions.

This article provides a systematic way to examine the impact of the innovative knowledge of customers on their recommendation intentions from firm design perspective and investigates the moderating effects of guidance methods and design materials provided combining different aspects of cognitive fit, media richness, and sticky information theories. We use the EQXIU platform, conduct two experiments, and find that there are significant differences between the novice customers and expert customers in their recommendation intentions. Experts are more prone to no-template materials, whereas novices are more inclined to use modules and templates. Therefore, to inspire innovation, firms should offer personalized opportunities based on customers’ knowledge levels to enhance their experience. Firms should also design the innovative activities taking into consideration the knowledge levels of their customers. At last, limitations of this study and directions for further research are discussed.

Enabling parametric design space exploration by non-designers

AbstractIn mass customization, software configurators enable novice end-users to design customized products and services according to their needs and preferences. However, traditional configurators hardly provide an engaging experience while avoiding the burden of choice. We propose a Design Participation Model to facilitate navigating the design space, based on two modules. Modeler enables designers to create customizable designs as parametric models, and Navigator subsequently permits novice end-users to explore these designs. While most parametric designs support direct manipulation of low-level features, we propose interpolation features to give customers more flexibility. In this paper, we focus on the implementation of such interpolation features into Navigator and its user interface. To assess our approach, we designed and performed user experiments to test and compare Modeler and Navigator, thus providing insights for further developments of our approach. Our results suggest that barycentric interpolation between qualitative parameters provides a more easily understandable interface that empowers novice customers to explore the design space expeditiously.

From free to paid: Customer expertise and customer satisfaction on knowledge payment platforms

In this study, we investigate what factors are influential to customer satisfaction of paid knowledge, especially among different customer segments, by integrating user activities on both free and paid platforms. Considering the complexity of knowledge acquisition, we first propose a novel measurement of “customer expertise” based on text mining, as a criterion for customer segmentation. Drawing upon the value-percept diversity theory, we then postulate a conceptual model proposing that customers with different expertise would react differently to the price of knowledge and historical knowledge-consuming transactions, in terms of customer satisfaction. We test the model empirically through the hierarchical OLS regression with data collected from Zhihu and Zhihu Live. Distinguishing expert and novice customers, we have findings that (1) expert customers are less sensitive to price; (2) historical price positively influences the satisfaction of novice customers, but negatively for expert customers; (3) expert customers are less influenced by historical satisfaction, which have important implications for market targeting and knowledge pricing strategy.

Designing Customer Education Activities to Change People’s Perception of Catfish

Most people see catfish as an unhygienic fish, so less people want to consume it. In fact, catfish has better nutrition compared to Gourami. Therefore, catfish producers need to educate people. The purpose of this research is to design customer education activities to change people’s perception towards catfish using marketing communication mix. This research is a qualitative research and it uses in-depth interview method in gathering the required data. Based on the preliminary survey conducted to 50 people in Surabaya, it is known that Surabaya people are considered novice customers. As such, catfish producers can conduct customer education activities until people want to taste the catfish. The company can add picture, video, and oral information about the benefits in consuming catfish or the nutrition and the certificate of hygienic cultivation system. The producers can provide tester for the catfish and show the customers the comparison between good and bad quality catfish. The producers can also add two more marketing communication activities i.e. events and experiences as well as public relations and publicity. The producers need to use reliable sources in informing the catfish’s nutrition facts such as the certificate of catfish breeder, and certification from BPOM.

CRM effectiveness and customer satisfaction: moderating role of relationship duration

CRM has been broadly researched by academicians and practitioners over the past few decades since effective CRM bestows substantial benefits to every firm from customer outcomes to financial outcomes. The purpose of this paper is to examine the moderating role of relationship duration between CRM effectiveness (CRME) and customer satisfaction link. The study used survey data of 458 Indian retail-bank customers by convenience sampling procedure. Hierarchical regression analysis shows that relationship duration moderates the effect of CRME on satisfaction. Additionally, the results indicate that experienced customers are more satisfied with the bank than novice customers. The research provides vital implications for bank managers to customise CRM activities based on customer length of relationship. This study is the first attempt to provide empirical evidence for the moderating role of relationship duration between the constructs CRME and customer satisfaction.

The development of loyalty among novice and experienced customers of sport and fitness centres

Researchers suggest that as consumption progresses, consumers’ needs change. However, previous studies have shown few insights into the effect of service quality and satisfaction on customer loyalty across different consumption stages. This study examines the impact of service quality and satisfaction on customer loyalty among novice and experienced customers in the context of sports and fitness centres. Altogether, 426 customers of a public sports and fitness centre in Greece participated in the study. The results indicate that service quality consistently affects overall satisfaction across both customer groups; service quality is a major driver of loyalty only for novice customers, while overall satisfaction is a major driver of customers’ future behaviours; however, its impact is significantly greater among experienced customers. These findings contribute positively to our understanding of how service quality and satisfaction are developed and influence customer retention in different consumption stages. The practical implications and limitations of this study are also discussed.

The influence of C2C communications in online brand communities on customer purchase behavior

Increasingly, consumers use the internet as a vehicle for pre-purchase information gathering. While technical specifications and potentially biased selling points can be gleaned from corporate web sites, online brand communities are becoming essential conduits for the customer-to-customer (C2C) sharing of product information and experiences. This study develops and tests a model of online C2C communications in developing desirable online brand community outcomes. Two studies were used to test the model. In Study 1, a netnography technique was employed and conversations between brand community members were coded and combined with survey data to test the research model. In Study 2 an experiment was conducted to further test the sequence of events in our base model. Our findings show that online brand communities are effective tools for influencing sales, regardless of whether these communities reside on company-owned or independently-owned websites. In addition, we demonstrate interesting asymmetrical effects, whereby the positive information shared by community members has a stronger moderating influence on purchase behavior than negative information. Further, we find that online brand communities are effective customer retention tools for retaining both experienced and novice customers. These findings highlight the need for all firms to carefully consider their online community strategies.

Customer Self-Efficacy in Technology-Based Self-Service

Firms increasingly offer customers the opportunity to coproduce self-service using online technologies. This requires novice customers to adopt a new role and engage in information search. This is particularly challenging in complex, high-risk services, such as online investment trading. Actively managing customers' task-specific self-confidence, or self-efficacy, in these types of technology-based self-service (TBSS) may convert novice customers into regular users and thereby increase return on investments. The authors show that self-efficacy increases novice customers' financial performance perceptions, service value evaluations, and future usage intentions. During online information search, novices focus on credibility and argument quality cues to determine their self-efficacy. The effects differ across information sources; third-party credibility and firm argument quality are most influential. Moreover, when consumers are highly engaged in their self-service role, the impact of credibility is strengthened, whereas that of argument quality is attenuated.