Power of information transparency: How online reviews change the effect of agglomeration density on firm revenue

Liu, Shan; Wei, Kezhen; Gao, Baojun

doi:10.1016/j.dss.2021.113681

Cited by 18 publications

(6 citation statements)

References 61 publications

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“…In recent years, with the rise of online shopping, studies have begun to address information transparency issues in online marketplaces (Liu et al, 2022). While theoretically, information transparency benefits all parties involved in the online transaction, a number of scholars question whether sellers are always beneficiaries (Li and Zhu, 2021).…”

Section: Signaling Theorymentioning

confidence: 99%

Green production information transparency and online purchase behavior: Evidence from green agricultural products in China

Liu

Lamrabet

et al. 2022

Front. Environ. Sci.

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The “lemon effect,” which is the result of information asymmetry and barriers to trust, poses serious challenges to the sustainable development of green agricultural products. Therefore, enhancing consumers’ trust is critical to maintain sustainable purchasing behavior. Information transparency has been widely attention as a marketing tool, and previous research related to agricultural products has focused on the visible information. Based on signaling theory, this study takes an invisible information perspective and empirically investigates how production information transparency of green agricultural products affects consumer trust and online purchasing behavior. The results of structural equation modeling analysis show that production technology information transparency and production means information transparency have different effects on the dimensions of consumer trust (in competence and benevolence). Moreover, trust in competence has a significant positive impact on trust in benevolence; they both have significant impacts on consumers’ online green purchase behavior. The results of this study contribute to signaling theory and the product transparency literature, and offer significant implications to practitioners of the green agricultural sectors.

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Section: Signaling Theorymentioning

confidence: 99%

Green production information transparency and online purchase behavior: Evidence from green agricultural products in China

Liu

Lamrabet

et al. 2022

Front. Environ. Sci.

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“…While retaining loyal customers is seen as a cost-effective measure as compared to acquiring a new customer (Reichheld, 1996), dissatisfied customers are seen to engage in negative word of mouth (Anderson, 1998), impacting firms’ long-term financial performance (Luo et al , 2010). Satisfied customers, on the other hand, are seen to recommend the service to their friends and family (Davis and Khazanchi, 2008), resulting in higher purchase probability (Yi and La, 2004), increased adoption intentions of products (Wu et al , 2021) in turn leading to increasing firm’s revenue (Liu et al , 2021) and profitability (Wang and Kim, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

AI-enables product purchase on Amazon: what are the consumers saying?

Gunasekar

Ray

Dixit

et al. 2022

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Purpose This study aims to identify the product attributes that influence customer satisfaction related to AI-enabled products with a strong forecast of growth. This study is very timely as the market for AI-based smart home products is still at a nascent stage in emerging economies (Vaishali Dar, 2021). Adding evidence to literature on the experience of customers, identifying the attributes that lead to customer satisfaction and those that lead to dissatisfaction are essential for products that were launched recently during the pandemic. This study makes valuable addition to the existing literature. Design/methodology/approach Online reviews (12,326 reviews) for EchoDot products launched by Amazon India during the pandemic were collected for the study. The attributes were identified based on the most frequently discussed attributes in the text reviews. Further review valence was determined to group the reviews under positive reviews indicating customer satisfaction and negative reviews indicating customer dissatisfaction. Logistic regression was used to identify the attributes that significantly impact customer satisfaction/dissatisfaction. Findings The results of the study indicate that while EchoDot is seen to add value to the smart home environment (home variable), video (video variable) and speaker (speaker variable) quality also contribute to customer satisfaction. Further, consumers found the product truly worth their money (value for money variable). Other attributes like a complaint about Bluetooth features are seen to increase the probability of customer dissatisfaction. Originality/value This study identifies the most important attributes that influence customer satisfaction in AI-enabled product sales on e-commerce platforms in pandemic times for India. Such studies are scarce in the emerging markets where the AI-based home appliance market is still in its nascent stage, and the customers are trying out their experiences with these products. What the customers expect and are these products fulfill these expectations is an important question that needs to be addressed by research. This study addresses this gap and adds to this literature.

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“…A higher intensity of other-brand outlets likely increases the market size owing to agglomeration effects 1 —the external economies accruing from the collocation of different firms (Chung and Kalnins 2001 ; Liu et al 2022 ; Marshall 1920 ). The presence of closely located outlets of different brands creates a destination marketplace for customers who want more variety in one place.…”

Section: Hypothesesmentioning

confidence: 99%

“… 1 I acknowledge that interbrand clustering may also trigger competition and harm the outlet performance. In this paper, I base my argument on the widely accepted positive outcome of interbrand clustering—agglomeration effect in terms of heightened demand (e.g., Chung and Kalnins, 2001 ; Liu, Wei, and Gao, 2022 ; Marshall, 1920 ). …”

mentioning

confidence: 99%

Mitigating the negative effect of intrabrand clustering: the role of interbrand clustering and firm size

Butt

2022

J Brand Manag

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Clustering—geographic concentrations of entities—has recently received more attention in marketing research and has been shown to affect multiple outcomes. This study investigates the impact of intrabrand clustering (clustering of same-brand outlets) on an outlet’s quality performance. Further, it assesses the moderating effects of interbrand clustering (clustering of other-brand outlets) and firm size. An examination of approximately 21,000 food service establishments in New York State in 2019 finds that the impact of intrabrand clustering on an outlet’s quality performance is context-dependent. Specifically, intrabrand clustering decreases, whereas interbrand clustering and firm size help to increase the outlet’s performance. Additionally, this study finds that the role of firm size is more substantial than interbrand clustering in mitigating the adverse effects of intrabrand clustering on outlet quality performance.

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Power of information transparency: How online reviews change the effect of agglomeration density on firm revenue

Cited by 18 publications

References 61 publications

Green production information transparency and online purchase behavior: Evidence from green agricultural products in China

Green production information transparency and online purchase behavior: Evidence from green agricultural products in China

AI-enables product purchase on Amazon: what are the consumers saying?

Mitigating the negative effect of intrabrand clustering: the role of interbrand clustering and firm size

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