Context Of Online Retailing Research Articles

Application of data mining technique for customer purchase behavior via Extended RFM model with focus on BCG matrix from a data set of online retailing

This study explores the integration of data mining, customer relationship management (CRM), and strategic management to enhance the understanding of customer behavior and drive revenue growth. The main goal is the use of application of data mining techniques in customer analytics, focusing on the Extended RFM (Recency, Frequency, Monetary Value and count day) model within the context of online retailing. The Extended RFM model enhances traditional RFM analysis by incorporating customer demographics and psychographics to segment customers more effectively based on their purchasing patterns. The study further investigates the integration of the BCG (Boston Consulting Group) matrix with the Extended RFM model to provide a strategic view of customer purchase behavior in product portfolio management. By analyzing online retail customer data, this research identifies distinct customer segments and their preferences, which can inform targeted marketing strategies and personalized customer experiences. The integration of the BCG matrix allows for a nuanced understanding of which segments are inclined to purchase from different categories such as “stars” or “cash cows,” enabling businesses to align marketing efforts with customer tendencies. The findings suggest that leveraging the Extended RFM model in conjunction with the BCG matrix can lead to increased customer satisfaction, loyalty, and informed decision-making for product development and resource allocation, thereby driving growth in the competitive online retail sector. The findings are expected to contribute to the field of Infrastructure Finance by providing actionable insights for firms to refine their strategic policies in CRM.

The Role of Service-Dominant Logic Strategic Orientations in Driving Customer Engagement in Online Retailing

Motivating customers’ engagement can be a crucial differentiating factor for the dynamically changing landscape of online retailing. This study draws on service-dominant (S-D) logic and behavioral literature to propose a conceptual model that depicts how a firm's S-D orientation and strategic capabilities stimulate customer engagement, leading to enhanced performance. The model captures the underlying mechanism of value cocreation in an online retailing context. The authors test the model using an experimental research design: 872 participants navigated a quest toward a hypothetical purchase in nine versions of a mock e-commerce website specializing in cycling equipment, and which contained various cues representing different S-D orientations. Findings suggest that S-D orientation has a positive impact on customers’ brand attitudes, affecting their engagement dispositions, purchase intentions, and ultimately (dis)engagement behaviors. In addition, relational, individuated, and developmental strategic capabilities appear to have a stronger impact on customer engagement in online retailing.

How Uncertain Promotions Affect Inaction Inertia in an Online Retail Context

ABSTRACT E-tailers often use different types of promotions to increase consumers’ willingness to buy. However, little research has been done to explore how to reduce inaction inertia caused by online promotions. Inaction inertia refers to the condition in which people who have missed a previously attractive opportunity are less likely to accept the current less attractive opportunity. This study explores how uncertainty, in combination with monetary and nonmonetary promotion types, impacts inaction inertia. The effect of the best possible outcome in an uncertain promotion is also examined. Two experiments are conducted in the context of online shopping to test the effects. The research findings can help e-tailers devise effective promotion strategies.

Examining the gamified effect of the blindbox design: The moderating role of price

A blindbox is a product design that incorporates uncertainty; a customer who purchases a blindbox receives a random product from a product series. The recent popularity of blindbox products calls for a rigorous examination of this product design. This study proposes a research model to examine the blindbox effects in an online retailing context. Following the uncertainty principle of gamification marketing, we hypothesize that the blindbox design can induce gameful experiences, thereby increasing customers’ brand engagement and purchase intention. We also investigate the moderation effect of an important design factor: the product price. Data from two experiments support the blindbox effects: this design leads to higher gameful experiences and marketing outcomes than a certain product. Moreover, the blindbox effects largely depend on the price: the effects are more salient at a premium price level and diminish below the average market price. Furthermore, we rule out two rival explanations, novelty and presentation richness, through supplementary tests. The findings, design issues, contributions, and directions for future research are discussed.

Does e-retailer's country of origin influence consumer privacy, trust and purchase intention?

PurposeConsumers are worried about sharing their sensitive information during online shopping due to the e-tailer’s unethical practices and hacking-related concerns. Prior research has established the country of origin (COO) as a trust-building cue; however, it requires empirical testing in the online retailing context. The present study aims to examine the e-tailer COO’s effect on consumer privacy, trust and purchase intention.Design/methodology/approachAn online survey floated a seven-point Likert scale questionnaire and invited the receivers to participate in the investigation over e-mails and text messages. A total of 355 usable responses were analyzed using R programming.FindingsThis study empirically validated a proposed conceptual model examining the influence of COO on consumer privacy, trust and purchase intention. The findings suggest that COO influences consumer privacy, trust and purchase intention. This study further found that the privacy practices of online retailers positively impact consumer trust. Trust acts as a mediating factor in influencing purchase intention.Practical implicationsThis study offers valuable insights for advancing the research agenda and actionable inputs to e-commerce managers for alleviating consumer privacy concerns in emerging economies. Future researchers can test the proposed model in other demographic and e-commerce settings.Originality/valueThis study contributes to the present knowledge on consumer privacy in online retailing in the Indian context. This paper also examines the relationship of COO with consumer privacy, trust and purchase intention, an underexplored research area in emerging markets.

Increase hedonic products purchase intention through livestreaming: The mediating effects of mental imagery quality and customer trust

Although online retailing is applying livestreaming to promote both hedonic and utilitarian products, the differential effectiveness of utilizing this tool across the two types of products is still unclear. With an online experiment, the study found that livestreaming (vs. traditional e-commerce) is more effective in boosting hedonic products while making no difference in increasing purchase intentions of utilitarian products. By running a moderated serial mediation analysis, the research also demonstrated the underlying mechanism that livestreaming could significantly enhance mental imagery quality and customer trust in hedonic rather than utilitarian products. Therefore, our research has discovered an important boundary condition for the livestreaming effect and also the mechanism for the success of utilizing livestreaming to boost hedonic products. Considering the indiscriminate use of livestreaming regardless of product types and the huge amounts of resources required to sustain livestreaming, the study not only provides a theoretical glimpse of where livestreaming is more effective and why, but also practical insights as to how to apply livestreaming to different types of products and how to leverage mental imagery and customer trust to achieve business growth in an online retailing context.

How human–computer interaction perception affects consumer well-being in the context of online retail: from the perspective of autonomy

PurposeIn recent years, the application of artificial intelligence and digital technology has increasingly become a priority for online retailers. It is crucial to choose a way to make use of human–computer interaction (HCI) design to exert the positive influence of intelligent technology on consumer welfare. Despite the increasing use of HCI design in online retail context, there remain limitations in their effect of consumer well-being improvement. Although there is extensive literature in the field of consumer well-being improvement, few studies have empirically examined how HCI design drives the improvement of consumer well-being in the online retail context. Therefor, this study aims to deeply and systematically analyze the psychological mechanism between HCI and consumer well-being in the online retail environment.Design/methodology/approachThe empirical analysis is based on data collection of 476 samples of online shoppers through the online survey method. From the perspective of autonomy, this study deeply analyzes the influence mechanism of different dimensions of HCI perception on consumer well-being.FindingsThe results indicated that autonomy plays a positive intermediary role in the impact of perceived connectivity, perceived personalization, perceived control and perceived responsiveness on the eudaimonia and hedonic enjoyment. Also, it revealed that psychological resistance negatively regulates the impact of perceived connectivity, perceived personalization and perceived control on autonomy, while experience purchase positively regulates the impact of autonomy on hedonic enjoyment.Originality/valueThis paper expands the research situation of consumer well-being by making integration of the dual structure of subjective well-being and psychological well-being to define the psychological mechanism and boundary conditions of the impact of HCI perception on consumer well-being. The main contribution of this study is to provide enlightenment for online retail enterprises to improve HCI design and help consumers enhance long-term well-being.

How does model type influence consumer and online fashion retailing?

PurposeModel's physical attractiveness plays an important role in online shopping. The purpose of this paper is to explore the relationships among model type, consumer's perceived amount of information and consumer's approach behaviour.Design/methodology/approachConstrual level theory and anchoring effect are used to develop hypotheses. The authors conducted an online experiment in China, and 229 females participated in this experiment.FindingsCompared with the professional model, the nonprofessional model triggers consumers' more perceived amount of information and approach behaviour. The latter effect is significantly enhanced in the website retailing context. Moreover, perceived amount of information positively affects approach behaviour.Practical implicationsThe findings can help fashion brands understand the roles of model type and the online retailing context in consumer behaviour. It offers guidance on how to improve its marketing strategy scientifically. It can also provide consumers with suggestions for making objective purchasing decisions.Originality/valueThis study is one of the first to examine the effects of two model types (professional model or nonprofessional model) on consumers' perceived amount of information and approach behaviour within two online retailing contexts (website stores or webcast studio).

Revisiting the antecedent of electronic word-of-mouth (eWOM) during COVID-19 Pandemic

The main feature of the Internet and e-commerce is electronic word-of-mouth (eWOM) through online reviews. As Internet users and their consumption of eWOM for product information overgrow in India, it is vital to examine the elements that influence the effectiveness of eWOM communication during COVID-19 pandemics. A systematic literature review has been conducted to assess the factors influencing eWOM in the online retailing context. The literature has been segregated into WOM, eWOM, the eWOM source credibility, eWOM message characteristics, eWOM platform, and outcome of eWOM adoption. The organised review provided a eWOM communication model and proposed an appropriate hypothesis to be tested. The finding concludes the significant relationship of eWOM determinants in building purchase intention, brand image, and attitude during COVID-19 pandemics. Previously conducted research examined the effect of source and message credibility; however, source homophily and website credibility in eWOM communication are rarely taken into account along with these constructs. This study will address more vigorous eWOM phenomena and empirical findings in the COVID-19 period. The study’s findings will help practitioners manage the power of eWOM communication for all stakeholders.

Gamification and customer experience: the mediating role of brand engagement in online grocery retailing

Purpose In recent years, the concept of gamification is one of the fastest-growing trends in the field of marketing to persuade, motivate and manipulate customer behavior. The application of gamification has become a priority for marketers as a new way of exploiting customers. Despite the increasing use of gamification mechanisms in marketing activities, there remain limitations. Although there is extensive literature in the field of customer experience and gamification, few studies have empirically examined how gamification influences customer experience by considering the mediating role of brand engagement in the online retailing context. Design/methodology/approach To obtain this aim, a cross-sectional survey was used. The statistical population was customers of online grocery retailers. The convenience sampling technique was used as a sampling technique. Out of 402 received questionnaires, 384 were selected for analysis. Structural equation modeling approach was applied to test the research hypotheses using AMOS 24 and SPSS 22 software. Findings The results indicated that all research hypotheses were supported. Gamification has a significant and positive impact on customer experience, gamification has a positive and significant effect on user customer brand engagement and customer brand engagement has a positive and significant impact on customer experience. Also, it revealed that customer brand engagement mediates between gamification and customer experience. Originality/value A review of the digital marketing literature reveals that there are few empirical studies, which adequately examined significant effective factors of customer experience in online grocery retailing; despite, the majority of researchers consider customer experience as the most important concept in digital marketing. The main contribution of this study is to examine the role of gamification on customer experience through the mediating role of customer engagement in the online grocery context. It adds value to the digital marketing and online retailing literature by providing new insight about determinants of customer experience in online grocery.

An exploratory and confirmatory composite analysis of a scale for measuring privacy concerns

This paper reports a confirmatory composite analysis of a scale for measuring privacy concerns, and the effect of privacy concerns on the willingness to provide personal data. The analysis is based on 468 survey responses, divided into two contexts: airport digital services and online retail services. Results from both contexts confirm that privacy concerns consist of a third-order construct comprising two-second order constructs (interaction management and information management) and a first-order construct (awareness). The effect of privacy concerns on the willingness to provide personal data is higher in the airport digital context than in the online retail context. Also, the relevance of the three dimensions varies by context. Thus, researchers must carefully consider their research context and include items for the most relevant dimensions of privacy concerns in measurement models. Likewise, managers must prioritise dimensions of privacy concerns according to their business context.

Luxury goods in online retail: How high/low positioning influences consumer processing fluency and preference

Consumers describe luxury goods as “high-status” goods that are associated with the “upper class.” If these spatial metaphors are valid, then consumers should prefer luxury goods being positioned higher in the visual field in a consumer setting, which would be because of the psychological theory known as “processing fluency.” Fluency occurs when there is a congruence between two concepts, facilitating ease of processing and thereby liking. We test the effect of high (vs. low) spatial positioning for luxury goods in an online retailing context. Across three experiments, we observe that placing luxury goods higher on a website “matches” consumers’ lay associations about such items, with the positive feelings thereby transferring onto the luxury good. The findings demonstrate that locating luxury products at different heights in the visual field can influence product preference. In doing so, we build on existing theory concerning visual perception, spatial metaphors, and processing fluency.

Do we always follow others? The impact of psychological distance on consumers’ observational learning modes

Purpose To investigate the psychological mechanism of observational learning in the online retailing context, the purpose of this paper is to show how the psychological distance between consumers and products affects modes of observational learning. Design/methodology/approach Five experimental studies are conducted to test the hypotheses. Findings The findings show that which modes of observational learning are adopted by consumers is affected by consumers’ psychological distance. Specifically, when the psychological distance between consumers and products is proximal, consumers tend to adopt the termed adequate observational learning mode by considering the interaction of information about popularity and the breadth of appeal of a product to make purchase. However, when the psychological distance is distal, consumers would consider information of popularity and breadth of appeal separately without considering the interaction, termed as inadequate observational learning mode. The observed relationship between psychological distance and observational learning mode could be explained by the construal level. Research limitations/implications This research advances the observational learning and psychological distance literature by investigating the psychological mechanism behind observational learning modes. Limitations include the use of scenario-based experiments to test the hypotheses, investigation of a single product attribute (i.e. breadth of appeal) and assessment of popularity information by sales volume alone. Practical implications The current research provides a deeper understanding of consumer observational learning modes, which can help online retailers to develop effective product strategies and marketing tactics and, finally, achieve stronger competitive positions. Originality/value The present research contributes to the literature by examining the psychological mechanism involved in observational learning. This research distinguishes adequate and inadequate observational learning modes from the perspective of psychological distance.

Consumers’ persuasion in online food delivery systems

Purpose This study aims to develop and validate a conceptual model that explains consumers’ persuasion by the information available on online food delivery systems (OFDS). The study validated consumers’ price savings orientation as an antecedent of two types of browsing behaviors (utilitarian and hedonic). Browsing and social influences were examined as predictors of persuasion. Design/methodology/approach A literature review was conducted to determine constructs that constituted the best conceptual model for this study. To test the model, an online instrument was developed, and data were collected with the help of a global marketing panel company from 333 consumers who have used OFDS. Confirmatory factor analysis and structural equation modeling were used to test the hypotheses of the model. Findings The study found that consumers’ price savings orientation strongly influenced both types of browsing. However, while utilitarian browsing did not influence consumers’ persuasion, hedonic browsing and social influence were strong predictors of persuasion. Research limitations/implications Given the uniqueness of the study that stems from its task-technology context and the type of product being purchased, this study advances the literature in hospitality information technology, especially in the relatively neglected foodservice information technology area. The study also provides implications for both restaurants and OFDS as critical stakeholders in this important area. Originality/value To the best of the authors’ knowledge, this is the first study to examine consumers’ persuasion in a food-service online retail context. This study is also the first to examine both types of browsing as distinct constructs in hospitality and to explain their differential role in persuasion.

Negative and positive customer shopping experience in an online context

Underpinned by the Bagozzi and Dholakia (1999) goal setting and striving framework this research firstly develops a negative online customer experience model after which regulatory focus theory is used to compare this model with a positive online customer experience model. Analysis of responses from 201 respondents in the first study shows service failure causes negative affective and cognitive experience and has an impact on dissatisfaction and negative word of mouth in the online retailing context. Moreover, results of a second study among 200 respondents indicates that while customer priority in a successful shopping context is affective experience, in a service failure the customer priority moves from an affective to a cognitive experience. Similarly, compared to cognitive experience, affective experience has a higher impact on customer satisfaction and positive word of mouth in a successful shopping context, while in an unsuccessful shopping context cognitive experience has higher impact on dissatisfaction and negative word of mouth. The findings of this study contribute to customer experience management in both successful and unsuccessful shopping situations.

It is interesting to note that even though the studies of atmospheric effects in physical stores have been abundant, knowledge of ambient factor effects in the online retailing context has been limited. This study investigates the influence of webmospheric effect, web page color displays on respondents’ emotional reactions and subsequent online impulse buying intention. A Stimulus-Organism-Responses (S-O-R) model was used

It is interesting to note that even though the studies of atmospheric effects in physical stores have been abundant, knowledge of ambient factor effects in the online retailing context has been limited. This study investigates the influence of webmospheric effect, web page color displays on respondents’ emotional reactions and subsequent online impulse buying intention. A Stimulus-Organism-Responses (S-O-R) model was used as the basic framework and a laboratory experiment was conducted to test the hypotheses in this study. The results demonstrated that web page color displays had a significant effect on participants’ emotional response, eventually influencing their intention to purchase impulsively online. Specifically, respondents felt more aroused and experienced greater pleasure when they were exposed to chromatic web page displays than achromatic one. Additionally, both pleasure and arousal emotions played an intervening role between web page color displays and online impulse purchasing intention. Personality traits and product involvement were proved to moderate the relationship between atmospheric cues and impulse shopping intention. These findings suggest that the website design with effective web page color displays would create a desirable environment and thus prompt consumers to buy impulsively. Finally, research implications of the model and proposition are presented.

Online customer experience in e-retailing: implications for web entrepreneurship

Providing consumers with unique experiences and immersing them in original contexts are the goals of web entrepreneurs. Researchers and web entrepreneurs have expressed a particular interest in the online customer experience, agreeing on its importance in creating satisfaction, revisiting intention, e-trust and e-loyalty. This paper explores customer experience in the online retail context. The online customer experience is central in forming customers’ perceptions of expectations of online retailers because this experience is highly personal. However, empirical research on the online customer experience remains scarce. The objectives of this unique study are twofold. The first is to compare the effect of online customer experience on the responses of Romanian and Tunisian customers. The comparative analysis is based on two dimensions of the online customer experience assessment tool. These dimensions are cognitive experiential state (flow) and affective experiential state. The second objective is to examine the contribution of each of these two dimensions in explaining overall perceived value, e-satisfaction, e-trust and repurchase intention in the online context, as well as their effects on web entrepreneurial initiatives. The findings reveal the impact of cultural influences on the constructs embedded in the research framework. The implications for practice relate to the increasing importance of online customer experience in tailoring online marketing campaigns. The implications for web entrepreneurship are clearly emphasised by the pathways from online customer experience to entrepreneurial initiatives. These pathways capture the value of customer-generated content in designing innovative business models.

Investigating identity fraud management practices in e-tail sector: a systematic review

PurposeIdentity fraud is a growing issue for online retail organisations. The literature on this issue is scattered, and none of the studies presents a holistic view of identity fraud management practices in the online retail context. Therefore, the purpose of this paper is to investigate the identity fraud management practices and present a comprehensive set of practices for e-tail sector.Design/methodology/approachA systematic literature review approach was adopted, and the articles were selected through pre-set inclusion criteria. The authors synthesised existing literature to investigate identity fraud management in e-tail sector.FindingsThe research finds that literature on practices for identity fraud management is scattered. The findings also reveal that firms assume identity fraud issues as a technological challenge, which is one of the major reasons for a gap in effective management of identity frauds. This research suggests e-tailers to deal this issue as a management challenge and counter strategies should be developed in technological, human and organisational aspects.Research limitations/implicationsThis study is limited to the published sources of data. Studies, based on empirical data, will be helpful to support the argument of this study; additionally, future studies are recommended to include a wide number of databases.Practical implicationsThis research will help e-tail organisations to understand the whole of identity fraud management and help them develop and implement a comprehensive set of practices at each stage, for effective management identity frauds.Originality/valueThis research makes unique contributions by synthesising existing literature at each stage of fraud management and encompasses social, organisational and technological aspects. It will also help academicians understanding a holistic view of available research and opens new lines for future research.

Mediating Role of Company Information in the Relationships among Perceived Risks and Purchase Intentions in an Online Retailing Context

The exponential growth of the online retail sector has attracted the attention of researchers across the globe. Understanding the consumer decision-making process in an online retail context is of vital importance to all online retailers. The objective of this study was to examine the direct and indirect impacts of perceived risks on consumers’ purchase intentions in an online shopping context. This study applied structural equation modeling to test the study model with data from 234 samples. We found a significant negative full mediating impact of performance risk, financial risk, physical risk, and psychological risk on consumers’ purchase intentions. Moreover, we found a partial mediating impact of social risk on purchase intentions. However, we did not find a mediating impact of time risk on purchase intentions. These empirical results may help online retailers to better understand their consumers, their intentions to purchase, and their level of risk perceptions. Accordingly, online marketers can frame contemporary strategies to attract retail customers, leading to greater profitability of the organization.

Effects of cognitive and affective trust on online customer behavior

PurposeAlthough prior works in online retailing have addressed the influence of trust on customer responses, they conceptualized trust as a single dimension. Based on social-psychological literature and sociological literature, this study proposes that consumer trust in an online retailer has two principal forms: cognitive trust and affective trust. The purpose of this paper is to examine various factors influencing the development of each form of customer online trust and the subsequent effect on customer satisfaction (CS) and loyalty intention (LI).Design/methodology/approachSurvey approach is employed to validate the research model. Data are collected from 334 Indian consumers and using structural equation modeling the causal pathways of the model are investigated.FindingsThe results show that cognitive trust and affective trust are empirically distinguished variables in online retailing context. Cognitive trust and affective trust are found to mediate the relationship between perceived website quality, security and privacy policy, prior-interaction experience, perceived e-tailer reputation and shared value and CS. CS also positively influences LI toward the online retailer.Practical implicationsThe paper provides interesting insights about Indian consumers’ evaluation of online retailers. These useful insights would enable both international and national online retailers to develop and apply different strategies to improve customer trust, which is a key driver of CS and LI.Originality/valueDrawing from signaling theory and organizational studies literature, this paper investigates the relationship between different antecedents and affect-based and cognition-based trust in online retailing context. In particular, this is the first study to examine multi-dimensional nature of consumer trust in online retailing context. Besides, this paper clearly shows that cognitive trust and affective trust are the mediating variables that positively affect CS toward online retailers and help in building strong customer LI.