Andrew D. Gershoff

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.

Betrayal Aversion: When Agents of Protection Become Agents of Harm

A form of betrayal occurs when agents of protection cause the very harm that they are entrusted to guard against. Examples include the military leader who commits treason and the exploding automobile air bag. We conducted five studies that examined how people respond to criminal betrayals, safety product betrayals, and the risk of future betrayal by safety products. We found that people reacted more strongly (in terms of punishment assigned and negative emotions felt) to acts of betrayal than to identical bad acts that do not violate a duty or promise to protect. We also found that, when faced with a choice among pairs of safety devices (air bags, smoke alarms, and vaccines), most people preferred inferior options (in terms of risk exposure) to options that included a slim (0.01%) risk of betrayal. However, when the betrayal risk was replaced by an equivalent non-betrayal risk, the choice pattern was reversed. Apparently, people are willing to incur greater risks of the very harm they seek protection from to avoid the mere possibility of betrayal.

The reciprocal effects of brand equity and trivial attributes

Brands increasingly introduce products with attributes that fail to provide consumers with meaningful benefits (i.e., trivial attributes). The authors present two experiments that examine the effect of brand equity on consumer valuation of such trivial attributes and the reciprocal effect that such a strategy may have on brand equity. The results show that both high and low equity brands benefit from offering an attractive trivial attribute in the absence of a disclosure of its true value. However, prechoice disclosure of an attributes triviality heightens the role of the brand and context cues. Competing low equity brands benefit by sharing the trivial attribute with a higher equity brand, whereas competing high equity brands benefit from uniquely offering a trivial attribute. Postchoice revelation that an attribute is trivial hurts the subsequent ability of a low but not a high equity brand to differentiate in a new product category, particularly among subjects who had previously chosen the target brand. For insights on brand dilution, the authors also examine consumer attributions regarding marketer intent for offering a trivial attribute.

What's Not to Like? Preference Asymmetry in the False Consensus Effect

Prior research has shown that individuals are often susceptible to a false consensus effect, whereby they overestimate the extent to which others share their opinions. In three studies, we show that the strength of the false consensus effect is moderated by the valence of one’s own opinion, such that overestimation of population consensus is greater when an individual likes an alternative as compared to when she or he dislikes it. Further, we show that this moderation of false consensus is driven by the availability of countervalence attributes, that is, disliked attributes in liked alternatives and liked attributes in disliked alternatives. We discuss theoretical and practical implications of these results.

Consumer Response to Versioning: How Brands' Production Methods Affect Perceptions of Unfairness

Marketers often extend product lines by offering limited-capability models that are created by removing or degrading features in existing models. This production method, called versioning, has been lauded because of its ability to increase both consumer and firm welfare. According to rational utility models, consumers weigh benefits relative to their costs in evaluating a product. So the production method should not be relevant. Anecdotal evidence suggests otherwise. Six studies show how the production method of versioning may be perceived as unfair and unethical and lead to decreased purchase intentions for the brand. Building on prior work in fairness, the studies show that this effect is driven by violations of norms and the perceived similarity between the inferior, degraded version of a product and the full-featured model offered by the brand.

The Bottom Dollar Effect: The Influence of Spending to Zero on Pain of Payment and Satisfaction

Spending that exhausts a budget is shown to decrease satisfaction with purchased products relative to spending when resources remain in the budget. Six studies, including those in which participants earn and spend real resources and evaluate real products, explore this bottom dollar effect. This research contributes to prior mental accounting research regarding how costs influence decision making (e.g., bundling, coupling, sunk costs) and to the satisfaction literature. Supporting the role of pain of payment in this process, we show that the bottom dollar effect increases as effort required to earn budgetary resources increases, decreases in the presence of windfall gains, and decreases when there is less time between budget exhaustion and replenishment. Mediation analyses further demonstrate the role of payment pain in the bottom dollar effect. Implications are discussed in the context of behavioral research, marketing promotions management, and public policy.

Knowing Where They Stand: The Role of Inferred Distributions of Others in Misestimates of Relative Standing

People often estimate how they compare to other consumers when they make purchase decisions. Unfortunately, they tend to err in this task, and this can lead to negative consequences in their choices. Previous literature has largely argued that these errors in estimates of relative standing are due to underweighting or ignoring the reference group. Using a novel measure of people’s perception of the reference group, we show that consumers do attend to that information but err in their estimates of relative standing because they tend to overestimate the dispersion of others’ performances and attributes. Three studies support this argument and provide insights that enable marketers to alter consumers’ relative assessment process in formerly discounted ways. We demonstrate straightforward tools that can change consumers’ impressions of others and thus change relative assessments and purchase decisions.

Betrayal aversion is reasonable

This article was written in response to Cass Sunstein’s, Moral Heuristics. We accept Sunstein’s claim that people often use moral heuristics to make judgments and decisions. Indeed, given people’s desire for social goals such as fairness, justice, and trustworthiness, it would be strange if moral intuitions did not impact the decisions people make. However, it is less clear that these moral intuitions - or moral heuristics - are as prone to systematic error as the classic heuristics in situations that include a risk of betrayal. We disagree with Sunstein about when the relevant moral heuristic may be said to “misfire”. We suggest that the moral heuristic people apply to avoid the possibility of safety-product betrayal may be reasonable.