IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v84y2008i4p477-486.html
   My bibliography  Save this article

Order Effect and Vendor Inspection in Online Comparison Shopping

Author

Listed:
  • Xu, Yunjie (Calvin)
  • Kim, Hee-Woong

Abstract

In the context of online comparison shopping, the phenomenon of order effect and its impact has profound theoretical and practical significance, as many search engines and shopping portals offer paid placement and paid inclusion in search results. In this study, we investigate how order effects and other market competitive factors work together to attract consumers’ attention to online vendors, which is manifested by the time spent on collecting more vendor information, and the probability of a vendor being included in a consumer’s consideration set. We found that the effect of serial position of a vendor in a list is mediated by consumers’ attention which in turn affects the probability of the vendor being accepted.

Suggested Citation

  • Xu, Yunjie (Calvin) & Kim, Hee-Woong, 2008. "Order Effect and Vendor Inspection in Online Comparison Shopping," Journal of Retailing, Elsevier, vol. 84(4), pages 477-486.
    • Handle: RePEc:eee:jouret:v:84:y:2008:i:4:p:477-486
    DOI: 10.1016/j.jretai.2008.09.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435908000717
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretai.2008.09.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert J. Meyer, 1982. "A Descriptive Model of Consumer Information Search Behavior," Marketing Science, INFORMS, vol. 1(1), pages 93-121.
    2. Michael D. Smith & Erik Brynjolfsson, 2001. "Consumer Decision-making at an Internet Shopbot: Brand Still Matters," NBER Chapters, in: E-commerce, pages 541-558, National Bureau of Economic Research, Inc.
    3. Haugtvedt, Curtis P & Wegener, Duane T, 1994. "Message Order Effects in Persuasion: An Attitude Strength Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 205-218, June.
    4. Brunel, Frédéric F. & Nelson, Michelle R., 2003. "Message Order Effects and Gender Differences in Advertising Persuasion," Journal of Advertising Research, Cambridge University Press, vol. 43(3), pages 330-341, September.
    5. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Jeffrey R. Brown & Austan Goolsbee, 2002. "Does the Internet Make Markets More Competitive? Evidence from the Life Insurance Industry," Journal of Political Economy, University of Chicago Press, vol. 110(3), pages 481-507, June.
    8. Erik Brynjolfsson & Michael D. Smith, 2000. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Management Science, INFORMS, vol. 46(4), pages 563-585, April.
    9. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    10. Rao, Vithala R & Sabavala, Darius Jal, 1981. "Inference in Hierarchical Choice Processes from Panel Data," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 8(1), pages 85-96, June.
    11. John G. Lynch , Jr. & Dan Ariely, 2000. "Wine Online: Search Costs Affect Competition on Price, Quality, and Distribution," Marketing Science, INFORMS, vol. 19(1), pages 83-103, April.
    12. repec:bla:jindec:v:49:y:2001:i:4:p:541-58 is not listed on IDEAS
    13. Brian T. Ratchford, 1982. "Cost-Benefit Models for Explaining Consumer Choice and Information Seeking Behavior," Management Science, INFORMS, vol. 28(2), pages 197-212, February.
    14. Herr, Paul M & Kardes, Frank R & Kim, John, 1991. "Effects of Word-of-Mouth and Product-Attribute Information on Persuasion: An Accessibility-Diagnosticity Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 454-462, March.
    15. Rami Zwick & Amnon Rapoport & Alison King Chung Lo & A. V. Muthukrishnan, 2003. "Consumer Sequential Search: Not Enough or Too Much?," Marketing Science, INFORMS, vol. 22(4), pages 503-519, October.
    16. Hoyer, Wayne D & Brown, Steven P, 1990. "Effects of Brand Awareness on Choice for a Common, Repeat-Purchase Product," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 141-148, September.
    17. Kristin Diehl & Gal Zauberman, 2005. "Searching Ordered Sets: Evaluations from Sequences under Search," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 31(4), pages 824-832, March.
    18. Gerald Häubl & Valerie Trifts, 2000. "Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids," Marketing Science, INFORMS, vol. 19(1), pages 4-21, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Glick & Greg Richards & Margarita Sapozhnikov & Paul Seabright, 2014. "How Does Ranking Affect User Choice in Online Search?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(2), pages 99-119, September.
    2. Kun Chen & Stephen J. Newell & Gang Kou & Lei Zhang & Chen Hua Li, 2017. "Effective strategies for developing meaningful names and associations for co-branded products in new and emerging markets," Journal of Brand Management, Palgrave Macmillan, vol. 24(4), pages 362-374, August.
    3. Carver, James R. & Padgett, Daniel T., 2012. "Product Category Pricing and Future Price Attractiveness: 99-Ending Pricing in a Memory-Based Context," Journal of Retailing, Elsevier, vol. 88(4), pages 497-511.
    4. Sang-Hyeak Yoon & Hee-Woong Kim, 2019. "What content and context factors lead to selection of a video clip? The heuristic route perspective," Electronic Commerce Research, Springer, vol. 19(3), pages 603-627, September.
    5. Gauzente, Claire & Roy, Yves, 2012. "Message content in keyword campaigns, click behavior, and price-consciousness: A study of millennial consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 78-87.
    6. Kamaladevi B, 2009. "Customer Experience Management in Retailing," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 12(34), pages 31-60, (4).
    7. Bruno J.D. Jacobs & Bas Donkers & Dennis Fok, 2016. "Model-Based Purchase Predictions for Large Assortments," Marketing Science, INFORMS, vol. 35(3), pages 389-404, May.
    8. Ola Andersson & Lif Nelander, 2021. "Nudge the Lunch: A Field Experiment Testing Menu-Primacy Effects on Lunch Choices," Games, MDPI, vol. 12(1), pages 1-19, January.
    9. Li, Yan & He, Hongwei, 2013. "Evaluation of international brand alliances: Brand order and consumer ethnocentrism," Journal of Business Research, Elsevier, vol. 66(1), pages 89-97.
    10. Xu, Xun & Munson, Charles L. & Zeng, Shuo, 2017. "The impact of e-service offerings on the demand of online customers," International Journal of Production Economics, Elsevier, vol. 184(C), pages 231-244.
    11. Breugelmans, Els & Campo, Katia, 2011. "Effectiveness of In-Store Displays in a Virtual Store Environment," Journal of Retailing, Elsevier, vol. 87(1), pages 75-89.
    12. Lurie, Nicholas H. & Wen, Na, 2014. "Simple Decision Aids and Consumer Decision Making," Journal of Retailing, Elsevier, vol. 90(4), pages 511-523.
    13. Maier, Erik, 2019. "Serial product evaluations online: A three-factor model of leadership, fluency and tedium during product search," International Journal of Research in Marketing, Elsevier, vol. 36(4), pages 558-579.
    14. Dant, Rajiv P. & Brown, James R., 2008. "Bridging the B2C and B2B Research Divide: The Domain of Retailing Literature," Journal of Retailing, Elsevier, vol. 84(4), pages 371-397.
    15. Grewal, Dhruv & Levy, Michael & Kumar, V., 2009. "Customer Experience Management in Retailing: An Organizing Framework," Journal of Retailing, Elsevier, vol. 85(1), pages 1-14.
    16. Dimitrios Tsekouras & Benedict G. C. Dellaert & Bas Donkers & Gerald Häubl, 2020. "Product set granularity and consumer response to recommendations," Journal of the Academy of Marketing Science, Springer, vol. 48(2), pages 186-202, March.
    17. Brown, James R. & Dant, Rajiv P., 2009. "The Theoretical Domains of Retailing Research: A Retrospective," Journal of Retailing, Elsevier, vol. 85(2), pages 113-128.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nathan M. Fong, 2017. "How Targeting Affects Customer Search: A Field Experiment," Management Science, INFORMS, vol. 63(7), pages 2353-2364, July.
    2. Zhang, Xubing & Jiang, Bo, 2014. "Increasing Price Transparency: Implications of Consumer Price Posting for Consumers' Haggling Behavior and a Seller's Pricing Strategies," Journal of Interactive Marketing, Elsevier, vol. 28(1), pages 68-85.
    3. Dmitri Kuksov, 2004. "Buyer Search Costs and Endogenous Product Design," Marketing Science, INFORMS, vol. 23(4), pages 490-499, May.
    4. Nestor Duch-Brown & Bertin Martens, 2014. "Consumer benefits from the EU Digital Single Market: evidence from household appliances markets," JRC Working Papers on Digital Economy 2014-03, Joint Research Centre (Seville site).
    5. Grewal, Dhruv & Janakiraman, Ramkumar & Kalyanam, Kirthi & Kannan, P.K. & Ratchford, Brian & Song, Reo & Tolerico, Stephen, 2010. "Strategic Online and Offline Retail Pricing: A Review and Research Agenda," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 138-154.
    6. Eymann, Torsten (Ed.), 2007. "Tagungsband zum Doctoral Consortium der WI 2007 [WI2007 Doctoral Consortium Proceedings]," Bayreuth Reports on Information Systems Management 24, University of Bayreuth, Chair of Information Systems Management.
    7. Alan L. Montgomery & Kartik Hosanagar & Ramayya Krishnan & Karen B. Clay, 2004. "Designing a Better Shopbot," Management Science, INFORMS, vol. 50(2), pages 189-206, February.
    8. Animesh Animesh & Siva Viswanathan & Ritu Agarwal, 2011. "Competing “Creatively” in Sponsored Search Markets: The Effect of Rank, Differentiation Strategy, and Competition on Performance," Information Systems Research, INFORMS, vol. 22(1), pages 153-169, March.
    9. Spiekermann, Sarah & Strobel, Martin & Temme, Dirk, 2002. "Drivers and impediments of consumer online information search: Self-controlled versus agent-based search in a high involvement context," SFB 373 Discussion Papers 2002,37, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    10. Lindgren, Charlie & Daunfeldt, Sven-Olov & Rudholm, Niklas, 2021. "Pricing In Retail Markets With Low Search Costs: Evidence From A Price Comparison Website," HFI Working Papers 18, Institute of Retail Economics (Handelns Forskningsinstitut).
    11. Nelson Granados & Alok Gupta & Robert J. Kauffman, 2012. "Online and Offline Demand and Price Elasticities: Evidence from the Air Travel Industry," Information Systems Research, INFORMS, vol. 23(1), pages 164-181, March.
    12. Nelson Granados & Alok Gupta & Robert J. Kauffman, 2010. "Research Commentary---Information Transparency in Business-to-Consumer Markets: Concepts, Framework, and Research Agenda," Information Systems Research, INFORMS, vol. 21(2), pages 207-226, June.
    13. Anindya Ghose & Yuliang Yao, 2011. "Using Transaction Prices to Re-Examine Price Dispersion in Electronic Markets," Information Systems Research, INFORMS, vol. 22(2), pages 269-288, June.
    14. Monga, Ashwani & Saini, Ritesh, 2009. "Currency of Search: How Spending Time on Search is Not the Same as Spending Money," Journal of Retailing, Elsevier, vol. 85(3), pages 245-257.
    15. Junhong Chu & Pradeep Chintagunta & Javier Cebollada, 2008. "Research Note—A Comparison of Within-Household Price Sensitivity Across Online and Offline Channels," Marketing Science, INFORMS, vol. 27(2), pages 283-299, 03-04.
    16. Anindya Ghose & Avi Goldfarb & Sang Pil Han, 2013. "How Is the Mobile Internet Different? Search Costs and Local Activities," Information Systems Research, INFORMS, vol. 24(3), pages 613-631, September.
    17. Edgardo Arturo Ayala Gaytán, 2009. "Social network externalities and price dispersion in online markets," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 1-28, November.
    18. Ya-Ling Chiu & Jiangze Du & Jying-Nan Wang, 2022. "The Effects of Price Dispersion on Sales in the Automobile Industry: A Dynamic Panel Analysis," SAGE Open, , vol. 12(3), pages 21582440221, August.
    19. Francesco Cerigioni & Simone Galperti, 2021. "Listing specs: The effect of framing attributes on choice," Economics Working Papers 1775, Department of Economics and Business, Universitat Pompeu Fabra.
    20. Jie Jennifer Zhang & Bing Jing, 2007. "The Impacts of Shopbots on Online Consumer Search," Working Papers 07-34, NET Institute, revised Sep 2007.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jouret:v:84:y:2008:i:4:p:477-486. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.