Herding in online product choice

Huang, Jen‐Hung; Chen, Yi‐Fen

doi:10.1002/mar.20119

Cited by 343 publications

(259 citation statements)

References 40 publications

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“…We compare our ndings with Gowrisankaran and Rysman (2009) who also estimated demand parameters in the camcorder category. Our nding on consumer sensitivity to pixel is consistent 22 Past literature supports theory-driven empirical specication (Boatwright et al 1999). However, we also estimate the proposed empirical model without the sign restriction on the price coecient, treating it as a normally distributed random variable with mean and variance.…”

Section: Parameter Estimatessupporting

confidence: 90%

“…Given the popularity and ubiquity of recommendations at many online stores, it is of practical and academic interest to investigate how recommendations aect the consumer information and product search decisions. In behavioral work, Huang and Chen (2006) report that the recommendations of other consumers inuence the choices of subjects more eectively than recommendations from an expert. Senecal and Nantel (2004) also show that retailer recommendations will signicantly aect demand.…”

Section: Introductionmentioning

confidence: 99%

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Online Demand Under Limited Consumer Search

2009

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Section: Parameter Estimatessupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

Online Demand Under Limited Consumer Search

2009

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“…Prior work has also shown that consumers are influenced by the actions of others because they believe others' decisions reflect information that they do not possess (e.g., Banerjee 1992;Burnkrant and Cousineau 1975;Huang and …”

Section: Disorganized Shelves Can Increase Perceptions Of Popularitymentioning

confidence: 99%

The Influence of Disorganized Shelf Displays and Limited Product Quantity on Consumer Purchase

Castro

Morales

Nowlis

2013

Journal of Marketing

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The current research explores how shelf display organization and limited product quantity together influence consumer purchase. The authors find that, in certain cases, shelves that are disorganized and not fully stocked tend to reduce sales, but in other cases, disorganized shelves that are not fully stocked tend to increase sales. In particular, for products that are ingested (e.g., juice), purchase likelihood is reduced when the product appears to be disorganized and product quantity is limited. However, for products that are not ingested (e.g., fabric softener), purchase likelihood increases when the product appears to be disorganized and product quantity is limited. Importantly, the authors also show that brand familiarity moderates these effects.Keywords: shelf displays, consumer decision making, product assortment, scarcity, contamination Iana A. Castro is Assistant Professor of Marketing, College of Business Administration, San Diego State University (e-mail: iana.castro@mail. sdsu. edu). Andrea C. Morales is Associate Professor of Marketing, W.P. Carey School of Business, Arizona State University (e-mail: acmorales@ asu.edu). Stephen M. Nowlis is August A. Busch Jr. Distinguished Professor of Marketing, Olin Business School, Washington University (e-mail: nowlis@ wustl.edu). The authors thank the three reviewers as well as Naomi Mandel and James Ward for their insightful comments, which helped improve the article. The article is based on the first author's dissertation. Alexander Chernev served as area editor for this article. Despite retailers' best intentions, consumers often shop in stores in which the products on the shelves appear to be messy and are not fully stocked. For example, a consumer shopping for eggs might notice that, instead of being arranged in neat stacks all facing the same way on the refrigerated shelf, the egg cartons seem to be in complete disarray and have not been restocked. Although most retailers likely want their shelf displays to be as orderly and fully stocked as possible, consumers often encounter disorganized and only partially stocked shelves in the actual marketplace. This can happen because consumers often handle the products and do not put them back neatly and because store employees often do not have enough time to organize and restock the shelves continually. In this article, we examine the effect of disorganized shelf displays and limited product quantity on consumer purchase.We propose that disorganized shelves that are not fully stocked will sometimes result in lower purchase likelihood and other times will result in greater purchase likelihood. In particular, a consumer who sees a messy product display may believe that this is the case because other consumers have handled the product, thereby causing the display to become disorganized and out of place. This may lead the consumer, under certain conditions, to believe that after other shoppers have handled a product, it is contaminated; thus, he or she is less likely to purchase it. However, at other times, the co...

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“…Not surprisingly, negative reviews, messages, or rumors hurt product evaluations and reduce purchase likelihood and sales (Huang and Chen 2006;Wyatt and Badger 1984;Tybout, et al 1981). Quantitative work has investigated how reviews influence sales.…”

Section: Negative Effcts Of Negative Informationmentioning

confidence: 99%

Positive Effects of Negative Publicity: When Negative Reviews Increase Sales

2009

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Can negative information about a product increase sales, and if so, when? Although popular wisdom suggests that "any publicity is good publicity," prior research has demonstrated only downsides to negative press. Negative reviews or word of mouth, for example, have been found to hurt product evaluation and sales. Using a combination of econometric analysis and experimental methods, we unify these perspectives to delineate contexts under which negative publicity about a product will have positive versus negative effects. Specifically, we argue that negative publicity can increase purchase likelihood and sales by increasing product awareness. Consequently, negative publicity should have differential effects on established versus unknown products. Three studies support this perspective. Whereas a negative review in the New York Times hurt sales of books by well-known authors, for example, it increased sales of books that had lower prior awareness. The studies further underscore the importance of a gap between publicity and purchase occasion and the mediating role of increased awareness in these effects. Negative Publicity 2 ABSTRACTCan negative information about a product increase sales, and if so, when? Although

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Herding in online product choice

Cited by 343 publications

References 40 publications

Online Demand Under Limited Consumer Search

Online Demand Under Limited Consumer Search

The Influence of Disorganized Shelf Displays and Limited Product Quantity on Consumer Purchase

Positive Effects of Negative Publicity: When Negative Reviews Increase Sales

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