Abhiroop Mukherjee

Consumer Acceptance of Online Agent Advice: Extremity and Positivity Effects

Internet shopping (or e-shopping) is emerging as a shopping mode and with its requirement of computer access and use, it is interesting to find out whether consumers associate e-shop-pers with any gender-specific stereotypes. Such stereotypes may be expected because shopping is considered a “female typed” activity whereas technology is considered to be in the male domain. In this article, we address this central question in an empirical study that varies the shopping context in terms of outlet type, product type, and purchase purpose. The respondents are college students with Internet access and familiarity with online shopping. The experimental results suggest that the global stereotype, held by both male and female respondents, is that of a shopper as a woman. This stereotype reverses when the product purchased is technical and expensive (DVD player). In terms of personality attributions, the female shopper is seen to be less technical, less spontaneous, and more reliable and attributions regarding personal characteristics are not influenced significantly by product type, outlet type, or purchase purpose.This article examines consumers’ intention to shop online during the information acquisition stage. Specifically, the study incorporates 3 essential variables, which are likely to influence consumer intentions: (a) convenience characteristic of shopping channels, (b) product type characteristics, and (c) perceived price of the product. Results indicate that convenience and product type influence consumer intention to engage in online shopping. When consumers perceive offline shopping as inconvenient, their intention to shop online is greater. Also, online shopping intention is higher when consumers perceive the product to be search goods than experience goods.The rapid growth of the Internet as an information medium has given rise to “infomediaries” that help aid consumers in making decisions. Recent research in the context of recommendation agents has shown that their use can lead to increases in consumer welfare. However, it is not clear if this varies by customer and by type of product. In this article, the role of category risk, product complexity, and customer category knowledge in moderating the impact of recommendation agents on consumer welfare is examined. A controlled experiment simulating a recommendation agent was used in conducting this study. Various product characteristics for which the recommendation agent provided information were manipulated. The results support some of the hypothesized effects. It is shown that category risk moderates the impact of recommendation agents on decision quality and product complexity moderates the role of recommendation agents on amount of search. The implications of this for theory and research on the Internet are discussed.This article examines consumers’ reactions to the provision of direct access to uncensored competitor price information within an electronic store. Based on notions derived from signaling theory, prior research on trust, and attribution theory, we propose that the facilitation of such access may have a positive impact on consumer preference for an online retailer. Furthermore, we predict that this effect will be moderated by how attractive a vendors prices are. The results of a laboratory experiment demonstrate the possibility that a retailers act of providing access to uncensored competitor price information may result in enhanced long-term preference for that vendor, especially if the latters prices are neither clearly superior nor obviously inferior to those of its competitors. Finally, this positive effect of facilitating access to competitors’ prices on consumer preference is mediated by the perceived trustworthiness of the online retailer.In this article we examine the effect of language, graphics, and culture on bilingual consumers’ Web site and product evaluations. We extend previous bilingual memory research to affective responses and to a new medium—the Internet. A series of studies suggests that attitudinal measures are influenced by the interaction of Web site language with two types of congruity: graphic congruity and cultural congruity. We conclude from our findings that both types of congruity influence bilinguals attitude-formation processes.Advances in information technology are making it possible to deliver multisensory stimuli over the Internet, giving rise to what we call second-generation electronic commerce, and to Web-based exchanges that approach in-store episodes and greatly exceed existing mass-market media in experiential richness. Delivery of multisensory stimuli is not enough, however, to fully activate, generate, and manage the embodied knowledge that is critical to consumer thinking about many types of products and services. Embodied knowledge refers to information elements that are generated and maintained outside the brain cavity and that are incorporated into consumer assessments of products and services. The view that consumers integrate embodied and conceptual knowledge into mental simulations of products and services is used as a foundation for a more general exposition of embodied knowledge and cognition. Three elements of embodied knowledge—body mapping and monitoring systems, proprioceptive knowledge, and body boundaries—are discussed, including their implications for e-commerce theory and practice and for marketing research in general. The methodological challenges of better understanding and managing embodied knowledge are also discussedConsumers often search the Internet for agent advice when making decisions about products and services. Existing research on this topic suggests that past opinion agreement between the consumer and an agent is an important cue in consumers’ acceptance of current agent advice. In this article, we report the results of two experiments which show that different types of past agreements can have different effects on the acceptance of current agent advice. In Study 1, we show that in addition to the overall agreement rate, consumers pay special attention to extreme opinion agreement when assessing agent diagnosticity (i.e., extremity effect). In Study 2 we show that positive extreme agreement is more influential than negative extreme agreement when advice valence is positive, but the converse does not hold when advice valence is negative (i.e., positivity effect). We conclude by identifying promising avenues for future research and discuss implications of the results for marketers in areas such as design of intelligent online recommendation systems and word-of-mouth management on the Internet.When consumers use computers to help make purchase decisions, how do they attribute responsibility for the positive or negative outcomes of those decisions? The results suggest that, in general, attributions of responsibility reflect a self-serving bias: Consumers tend to blame computers for negative outcomes and tend to take personal credit for positive ones. However, the results also suggest that, when consumers have a history of intimate self-disclosure with a computer, this pattern of attribution is significantly mitigated: Consumers are more willing to credit the computer for positive outcomes, and are more willing to accept responsibility for negative outcomes. In addition, this research provides evidence that the causal relation between self-disclosure and attributions of responsibility is partially mediated by attraction.In the context of online shopping, a major change in the consumer decision-making cognitive process is the partial shift of effort from consumers to electronic decision aids. The objective of this article is to investigate consumers’ perception of the “effort” expended by decision aids and how this perception influences their satisfaction with the decision process. The findings of two laboratory experiments show that, in comparison to human decision aids, consumers believe that electronic aids exert less effort but save them an equal level of effort. It is also shown that consumers’ satisfaction with the search process is positively associated with their perception of effort saved for them by electronic aids.Recently, it has been proposed that creating compelling experiences in the distinctive consumption environment defined by the Internet depends on facilitating a state of flow. Although it has been established that consumers do, in fact, experience flow while using the Web, consumer researchers do not as yet have a comprehensive understanding of the specific activities during which consumers actually have these experiences. One fruitful focus of research on online consumer experience has been on two distinct categories of consumption behavior— goal directed and experiential consumption behavior. Drawing distinctions between these behaviors for the Web may be particularly important because the experiential process is, for many individuals, as or even more important than the final instrumental result. However, the general and broad nature of flow measurement to date has precluded a precise investigation of flow during goal-directed versus experiential activities. In this article, we explore this issue, investigating whether flow occurs during both experiential and goal-directed activities, if experiential and goal-directed flow states differ in terms of underlying constructs, and what the key characteristics are—based on prior theory—that define “types” of flow experiences reported on the Web. Our approach is to perform a series of quantitative analyses of qualitative descriptions of flow experiences provided by Web users collected in conjunction with the 10th GVU WWW User Survey. In contrast with previous research that suggests flow would be more likely to occur during recreational activities than task-oriented activities, we found more evidence of flow for task-oriented rather than experiential activities, although there is evidence flow occurs under both scenarios. As a final note, we argue that the role that goal-directed and experiential activities may play in facilitating the creation of compelling online environments may also be important in a broader consumer policy context.The World Wide Web has the potential to change much about consumer behavior and consumer communication. Web-based chatting, the focus of this study, is one example. In this article, we provide an illustrative description of various consumer chatting situations, examine the motivations underlying Web-based chatting, and discuss the ways in which chatters act as “naive marketers” in their attempt to attract chatting partners. Using information gathered through the combined use of an Internet survey and a content analysis, we explore five research questions: who chats, why individuals chat, how chatters communicate, what links exist between Web chatting and other consumer behaviors, and which factors lead to a successful chatting experience? The findings provide some insight into how consumers market themselves in cyberspace and the effectiveness of their “personal advertisements” in attracting other chatters.Whereas the Internet itself poses unique challenges and opportunities, it is possible that the context of the Internet (a computer context) affects consumers differently than other contexts would, thereby causing people to think about and evaluate products differently. Drawing from learning theory and the functional theory of attitudes, it is predicted that computers, by being associated with the accessibility of detailed information, will elicit a need for meaning. Consequently, when a computer is present, people may think about and seek more product information than will those evaluating the product on paper (a print context). The results of an experiment support these hypotheses. Across two diverse products, the mere presence of a computer caused people to think more about and request more information about the product than those in the print context did. Furthermore, the attitudes of those in the computer context were more representative of both dimensions described in the advertisement, whereas the attitudes of those in the print context reflected the valence of the dimension that is typically used when evaluating the product. Implications for promoting products and conducting market research in computer environments are discussed.In the bricks-and-mortar environment, stores employ sales people that have learned to distinguish between shoppers based on their in-store behavior. Some shoppers appear to be very focused in looking for a specific product. In those cases, sales people may step in and help the shopper find what they are looking for. In other cases, the shopper is merely “window shopping.” The experienced sales person can identify these shoppers and either ignore them and let them continue window shopping, or intercede and try and stimulate a purchase in the appropriate manner. However, in the virtual shopping environment, there is no sales person to perform that role. Therefore, this article theoretically develops and empirically tests a typology of store visits in which visits vary according to the shoppers’ underlying objectives. By using page-to-page clickstream data from a given online store, visits are categorized as a buying, browsing, searching, or knowledge-building visit based on observed in-store navigational patterns, including the general content of the pages viewed. Each type of visit varies in terms of purchasing likelihood. The shoppers, in each case, are also driven by different motivations and therefore would respond differentially to various marketing messages. The ability to categorize visits in such a manner allows the e-commerce marketer to identify likely buyers and design more effective, customized promotional message.We propose an analytical framework for studying bidding behavior in online auctions. The framework focuses on three key dimensions: the multi-stage process, the types of value-signals employed at each phase, and the dynamics of bidding behavior whereby early choices impact subsequent bidding decisions. We outline a series of propositions relating to the auction entry decision, bidding decisions during the auction, and bidding behavior at the end of an auction. In addition, we present the results of three preliminary field studies that investigate factors that influence consumers’ value assessments and bidding decisions. In particular, (a) due to a focus on the narrow auction context, consumers under-search and, consequently, overpay for widely available commodities (CDs, DVDs) and (b) higher auction starting prices tend to lead to higher winning bids, particularly when comparable items are not available in the immediate context. We discuss the implications of this research with respect to our understanding of the key determinants of consumer behavior in this increasingly important arena of purchase decisions.

Prospect Theory and Stock Returns: An Empirical Test

We test the hypothesis that, when thinking about allocating money to a stock, investors mentally represent the stock by the distribution of its past returns and then evaluate this distribution in the way described by prospect theory. In a simple model of asset prices where some investors think in this way, a stock whose past return distribution has a high (low) prospect theory value earns a low (high) subsequent return, on average. We find empirical support for this prediction in the cross-section of U.S. stock returns, particularly among small-capitalization stocks where less sophisticated investors are likely to have a bigger impact on prices. We repeat our tests in 46 international stock markets and find a similar pattern in a majority of these markets. JEL classification: D03

Do corporate taxes hinder innovation

We exploit staggered changes in state-level corporate tax rates to show that an increase in taxes reduces future innovation. A variety of tests, including those based on policy discontinuity at contiguous counties straddling borders of politically similar states, show that local economic conditions do not drive our results. The effect we document is consistent across the innovation spectrum: taxes affect not only patenting and R&D investment but also new product introductions, which we measure using textual analysis. Our empirical results are consistent with models that highlight the role of higher corporate taxes in reducing innovator incentives and discouraging risk-taking.

Roads and Loans

Does financing respond to changes in productive opportunities even for the worlds poor? We shed light by examining the response of private bank financing to a rural road-building program in India. The program prioritized roads for villages above explicit population thresholds, allowing us to use discontinuities in treatment probability for identification. We find large financing responses - odds of a villager getting a loan is twice as high, and the average loan amounts are about 50% higher - for villages just above the threshold compared to those below. Benefits seem to flow disproportionately to those traditionally disadvantaged in rural societies.