Neurological effects of product price and evaluation on online purchases based on event-related potentials

Tang, Xiaoli; Song, Zhijie

doi:10.1016/j.neulet.2019.04.019

Cited by 6 publications

(19 citation statements)

References 18 publications

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“…However, consumers face difficulties in inferring food quality because the foods and restaurants can not be directly observed and physically experienced during online purchase. Since consumer-generated comments and ratings exert informational and social influences on consumer behavior ( Utz et al, 2012 ; Kuan et al, 2014 ; Tang and Song, 2019 ), ratings about food taste and hygiene have been increasingly used by the online take-out industry to facilitate consumer decision-making.…”

Section: Introductionmentioning

confidence: 99%

“…When the product rating is high, sales has a positive effect on purchasing rate; but when the product rating is low, sales has no effect on purchasing rate ( Wang et al, 2016 ). In a study examining the joint influence of online rating and product price on purchase decision, it is found that product rating as a more diagnostic cue can positively moderate the effect of price (a less diagnostic cue) on purchase intention ( Tang and Song, 2019 ). However, it is still unknown about the difference of diagnosticity between taste rating and hygiene rating cues.…”

Section: Introductionmentioning

confidence: 99%

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How Are Consumers Affected by Taste and Hygiene Ratings When Ordering Food Online? A Behavioral and Event-Related Potential Study

Wang

Luo

et al. 2022

Front. Neurosci.

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With the rapid development of the take-out industry, taste and hygiene ratings as social-based information have been frequently used by online food-ordering platforms to facilitate consumer purchases. The present study aims to uncover the effects of taste and hygiene ratings on online food-ordering decision by incorporating behavioral and neural approaches. The behavioral results showed that a high taste rating induced a higher ordering intention than a low taste rating, and that a high hygiene rating induced a higher ordering intention than a low hygiene rating. The effect of hygiene rating on ordering intention was moderated by taste rating. Hygiene rating had a greater impact on ordering intention when the taste rating was high (vs. low). In addition, inconsistency between taste and hygiene ratings increased the cognitive load and took more time for decision-making. The event-related potential (ERP) data revealed that consumers paid more attention to a high (vs. low) taste rating in the early cognitive process, which was reflected by a larger P2. Subsequently, a more negative N2 was elicited by conflicting ratings than consistent ratings when the taste rating was low. In the relatively late decision-making process, a larger P3 was evoked by consistent than conflicting ratings, suggesting that consumers had more confidence in their decisions for consistent ratings. These findings could help restaurants understand the roles of taste and hygiene rating cues in affecting consumer behavior and prompt those restaurants to adopt effective measures to increase online sales.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How Are Consumers Affected by Taste and Hygiene Ratings When Ordering Food Online? A Behavioral and Event-Related Potential Study

Wang

Luo

et al. 2022

Front. Neurosci.

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“…A growing number of ERP studies have explored the neural correlates of purchase decision-making or judgment in various marketing domains, such as product preferences (Goto et al, 2017; Schaefer et al, 2016; Telpaz et al, 2015), perceived quality (Wang & Han, 2014), product price (Fu et al, 2019; Tang & Song, 2019), brand extension (Wang et al, 2012; Yang & Kim, 2019), attribute framing of product descriptions (Jin et al, 2017), country-of-origin image stereotypes (Xie et al, 2018), social influence, including social context (Pozharliev et al, 2015; Shang et al, 2017), social cues (Chen, Ma, Li, Dai, et al, 2010; Chen, Ma, Li, Lai, et al, 2010; Guo et al, 2019; Wang et al, 2016; Zhang et al, 2020), and celebrity brand endorsements (Liao et al, 2019; Wang et al, 2019). These prior studies have suggested possible explanations of the main ERP components in the neural mechanism that underlie the time course of buying decision-making.…”

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confidence: 99%

“…These prior studies have suggested possible explanations of the main ERP components in the neural mechanism that underlie the time course of buying decision-making. For example, P2 can be interpreted as unconscious attention attraction in the automatic cognition stage of stimuli (Jin et al, 2017; Pozharliev et al, 2015; Tang & Song, 2019). N2 may reflect the conflict monitoring or cognitive control related to marketing information processing (Fu et al, 2019; Goto et al, 2017; Jin et al, 2017; Telpaz et al, 2015; Shang et al, 2017).…”

mentioning

confidence: 99%

“…N2 may reflect the conflict monitoring or cognitive control related to marketing information processing (Fu et al, 2019; Goto et al, 2017; Jin et al, 2017; Telpaz et al, 2015; Shang et al, 2017). LPP or P3 might reflect the consumers’ evaluative categorization process before the final buying choice (Chen, Ma, Li, Dai, et al, 2010; Fu et al, 2019; Goto et al, 2017; Guo et al, 2019; Jin et al, 2017; Wang & Han, 2014; Wang et al, 2016; Yang & Kim, 2019; Zhang et al, 2020), or emotional effect of the brand type (Pozharliev et al, 2015; Tang & Song, 2019).…”

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confidence: 99%

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Are consumers cognitive misers? An event-related potential study on decision-making in online purchasing.

Chen¹,

Ni²

2021

Journal of Neuroscience, Psychology, and Economics

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The notion of cognitive miserliness that people can automatically perceive and sensitively react to cognitive cost in cognitive task completion has been accepted widely. No research has investigated the underlying neural processes associated with consumers' cognitive miserliness. We developed a paradigm for event-related potential (ERP) using online purchase decision-making tasks with high/low cognitive demand to explore consumers' neural responses to different levels of cognitive cost. Participants faced either deliberative (Deliberative) or heuristic decision-making (Heuristic_DM) in each trial. Four ERP components explain consumers' neural responses to cognitive cost. First, Deliberative_DM evoked larger feedback-related negativity (FRN) than Heuristic_DM. FRN can be evoked by anticipated negative outcomes. The larger FRN might mainly reflect the participants' loss perception led by anticipated high cognitive effort in Deliberative_DM. This finding might also imply that consumers encode cognitive effort as a cognitive cost with negative utility. Second, a larger P2 was evoked in Heuristic_DM than in Deliberative_DM, suggesting that more attentional resources were allocated to the stimuli leading to Heuristic_DM demanding less cognitive expenditure. Third, P3b was observed in Heur-istic_DM, while slow-wave (SW) was observed in Deliberative_DM. Observed P3b, related to target stimulus classification, revealed that Heuristic_DM with low cognitive cost might be categorized as expected target stimuli. The SW, an ERP indicator of mental calculation, demonstrated that Deliberative_DM launched an effortful mental arithmetic process. Our insights will help marketing professionals better understand consumers' responses to the cognitive cost of information processing in purchase decision-making.

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How do expert reviews and consumer reviews affect purchasing decisions? An event-related potential study.

Guo¹,

Chen²,

Li³

et al. 2022

Journal of Neuroscience, Psychology, and Economics

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Online consumer reviews and expert reviews play a crucial role in customers’ purchase decisions. Existing studies explored the influence of consumer reviews and expert reviews on purchasing decisions separately. No research has examined how expert reviews and consumer reviews affect purchasing behaviors simultaneously. This study adopted the event-related potentials (ERP) technique to investigate the underlying cognitive process and purchasing behaviors when confront with different portfolios of consumer reviews and expert reviews. Participants were required to make a purchase decision according to the presented stimuli in each trial. Behavioral results indicated that a higher purchase rate was observed when expert reviews and consumer reviews are positive, followed by the portfolio of positive expert reviews and negative consumer reviews. The results suggested that expert reviews outweigh consumer reviews when making purchase decisions. At the neural level, when expert reviews and consumer reviews are consistent (both positive or negative), positive reviews could evoke smaller P2, larger N2, and larger later positive potential (LPP). When expert reviews and consumer reviews are conflictive, the portfolio of positive expert reviews and negative consumer reviews could elicit smaller P2, N2, and larger LPP. The physiological results revealed a three-stage cognitive pattern before making purchase decisions, including early attentional resources allocation with P2, conflicts perception with N2, and the later evaluative categorization with LPP. Briefly, these findings provided a preliminary exploration of consumers’ underlying cognitive processes and neural responses when making purchase decisions. Our findings will help marketers better understand consumers’ cognitive processes and contribute to managing online reviews.

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Neurological effects of product price and evaluation on online purchases based on event-related potentials

Cited by 6 publications

References 18 publications

How Are Consumers Affected by Taste and Hygiene Ratings When Ordering Food Online? A Behavioral and Event-Related Potential Study

How Are Consumers Affected by Taste and Hygiene Ratings When Ordering Food Online? A Behavioral and Event-Related Potential Study

Are consumers cognitive misers? An event-related potential study on decision-making in online purchasing.

How do expert reviews and consumer reviews affect purchasing decisions? An event-related potential study.

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