Gerald Häubl

A Cross-National Investigation of the Effects of Country of Origin and Brand Name on the Evaluation of a New Car

Examines the cross‐national applicability of a model of the effects of country of origin and brand name on consumers’ evaluations of a product. Specifically, investigates the structures of country‐of‐origin and brand effects on the evaluation of a new automobile by German and French car owners. Uses a multi‐group structural equation modelling approach to assess the invariance of the proposed model across countries. Reports findings indicating both the factor structure and the structural model relationships are invariant, thus providing support for the hypothesis of the model’s cross‐national generalizability. Also notes that both brand name and country of origin turned out to have a significant impact on consumers’ evaluations of the automobile. Discusses the implications of the study for international manufacturing decisions and new product development.

Explaining Cognitive Lock-In: The Role of Skill-Based Habits of Use in Consumer Choice

We introduce and test a theory of how the choices consumers make are influenced by skill-based habits of use-goal-activated automated behaviors that develop through the repeated consumption or use of a particular product. Such habits can explain how consumers become locked in to an incumbent product. The proposed theory characterizes how the amount of experience with the incumbent product, the occurrence of usage errors while learning to use that product, and the goal that is activated at the time a choice is made interrelate to influence consumer preference. The results of three experiments support the theorys predictions. (c) 2007 by JOURNAL OF CONSUMER RESEARCH, Inc..

Information Availability and Consumer Preference: Can Online Retailers Benefit From Providing Access to Competitor Price Information?

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.

The Signature Effect: Signing Influences Consumption-Related Behavior by Priming Self-Identity

Evidence from four studies shows that signing ones name influences consumption-related behavior in a predictable manner. Signing acts as a general self-identity prime that facilitates the activation of the particular aspect of a consumers self-identity that is afforded by the situation, resulting in behavior congruent with that aspect. Our findings demonstrate that signing causes consumers to become more (less) engaged when shopping in a product domain they (do not) closely identify with (studies 1 and 2), to identify more (less) closely with in(out)-groups (study 3), and to conform more with (diverge more from) in(out)-groups when making consumption choices in preference domains that are relevant to signaling ones identity (study 4). We discuss the theoretical and practical implications of these findings.

Motivation by Anticipation Expecting Rapid Feedback Enhances Performance

We have all waited to receive evaluations of our performance. Indeed, feedback on some of life’s most consequential endeavors—such as writing exams, developing business proposals, and preparing manuscripts for publication—arrives with substantial delay. Although the importance of feedback in learning and other domains is well recognized (e.g., Schmidt & Bjork, 1992), the question of whether people’s performance is influenced by when they expect to receive feedback on it has not been examined previously. When anticipated feedback is more proximate, so is the threat of disappointment—the negative affect experienced when an outcome falls short of expectations (van Dijk, Zeelenberg, & van der Pligt, 2003). The desire to avoid disappointment is a powerful motivator, leading people to alter their choices (Mellers, 2000), lower their expectations (Carroll, Sweeny, & Shepperd, 2006; Shepperd, Ouellette, & Fernandez, 1996), and intensify their efforts to perform well (Norem & Cantor, 1986). Thus, we hypothesized that the mere anticipation of more proximate feedback would cause people to perform better. We tested this hypothesis in a field experiment involving a highly consequential behavior: individual presentations in a university course. Each student gave a 4-min oral presentation that was peer-graded. The course comprised seven sections. Within each section, students were randomly assigned to a presentation date; typically, 10 students made presentations in each class session. All students in the audience rated each presentation on a scale from 0 (poor) to 10 (excellent). The mean of these ratings formed the presenter’s grade for this component of the course.

To Bundle or Not to Bundle: Determinants of the Profitability of Multi-Item Auctions

This article introduces and empirically tests a conceptual model of the key determinants of the profitability of bundling in auction markets. The model encapsulates hypotheses about how seller revenue from the combined (i.e., bundle) auction of component products relative to that from separate auctions of the components is influenced by the heterogeneity in bidders’ product valuations, the degree of complementarity between component products, the particular multi-item selling strategy, and the outside availability of the products. The results of three field experiments show that though bundle auctions tend to be less profitable for noncomplementary and substitute products, they are on average 50% more profitable than separate auctions when there is (even only moderate) complementarity between the component products. The latter effect is greater when the bundle and the separate components are offered at different times, and it is more pronounced for services than for tangible goods. The findings also identify conditions under which each of the essential multi-item selling strategies for fixed-price settings (pure components, pure bundling, and mixed bundling) tends to maximize seller revenue in auctions.

Interactive Consumer Decision Aids

Today’s consumersare faced with avast and unprecedented breadth and depthof product alternatives: a Wal-Mart Supercenter stocks over 100,000 items(Yoffie 2005), Home Depot more than 50,000 (Murray and Chandrasekhar2006), and the typical grocery store more than 30,000 (Schwartz 2005). Theadventofonlineshoppinghasfurtherincreasedthechoicesthatareavailabletoconsumers; both eBay.com and amazon.com offer literally millions of uniqueproducts,fromthousandsofproductcategories,forsalethroughtheirwebsites.Ifdecidingamongallofthesealternativesgivesconsumersaheadache,atriptothelocalpharmacydoeslittletorelievethepain.Eveninproductcategoriesthatone might consider relatively simple and straightforward, such as analgesics, itis common to find in excess of 60 different varieties side-by-side on the shelf(Schwartz 2005). The consumer is asked to select the chemical composition(ibuprofen, acetaminophen, acetylsalysic acid, etc.), decide between brandnames (Advil, Tylenol, Aspirin, etc.) and generics, and choose from numerousfeatures (‘‘cool burst,’’ coated, time release, etc.), packaging (liquid gel, tablet,caplet, as well as the number of pills, etc.) and concentrations (regular, extrastrength).Fortheconsumer,thereisacosttoprocessinginformation,andthatcostrisesas the complexity of the decision increases (Shugan 1980). As a result, makingdecisions in a world with an ever-growing variety of products and productcategories is increasingly taxing. Traditionally, humans have been able to effec-tively adapt to complex environments by adjusting their decision making strate-gies to the situation they are faced with (Payne et al. 1993), employing heuristicsto lighten the cognitive load (e.g., Kahneman and Tversky 1984), or simplydoing what they did last time (Hoyer 1984; Murray and Ha¨ubl 2007; Stigler

A human capital perspective of skill acquisition and interface loyalty

It has long been recognized that humans are able to improve task performance as a result of repeated experience with a particular task, and that this type of learning consistently adheres to the Power Law of Practice. However, less attention has been given to the impact that practice, and the acquisition of skill, have on a user’s loyalty to a particular software interface. Here, we review the notion of human capital, and discuss specific examples from research into online shopping, in an effort to better understand the role of learning in the development of interface loyalty. Learning by doing is an essential aspect of human knowledge acquisition. Over time and through experience we acquire the skills we need to survive and thrive in the world. While novel tasks often require a concerted effort, over time, and with practice, many behaviors that were initially very demanding become routine. As a result, the demands of the task are diminished and cognitive resources can be allocated elsewhere. Learning to drive is a good example of this phenomenon. While initially operating an automobile can be quite demanding, with practice many of the required skills become automatic. Similarly, using a computer to type a letter or to shop for a new CD can be intimating to a novice user. Yet, experienced users find the operation of a word processor or the navigation of an online store to be a relatively simple task. The ability to learn from experience is a fundamental aspect of human existence.

Product Customization via Starting Solutions

Customizing a product by choosing each of its attributes individually tends to be onerous for consumers, and the benefits of product customization may thus be offset by an increase in choice complexity. As a remedy for this dilemma, the current research introduces the customization via starting solutions (CvSS) architecture, which substantially reduces the complexity of product customization while preserving all of its advantages. Under CvSS, consumers first select one starting solution from a set of prespecified products, which they then refine to create their final customized product. Evidence from nine studies (three of which were conducted in field settings) across a wide range of product domains (shirts, cars, vacation packages, jewelry, and financial products) shows that the CvSS architecture results in substantial benefits relative to the standard attribute-by-attribute product customization format for both consumers (increased satisfaction with their product choices, reduced choice complexity, and enhanced mental simulation of product use) and firms (purchases of more feature-rich, and thus higher-priced, products).

Act 2.0: The Next Generation of Assistive Consumer Technology Research

Purpose: This paper reviews current research on assistive consumer technologies (ACT 1.0) and discusses a series of research challenges that need to be addressed before the field can move towards tools that are more effective and more readily adopted by consumers (ACT 2.0). Design/methodology/approach: This is a conceptual paper. Our perspective, commensurate with our current research and areas of expertise, is that of consumer researchers.Findings: We argue that while substantial advances have been made in the technical design of ACTs – and the algorithms that power recommendation systems – there are substantial barriers to wide-scale consumer adoption of such tools that need to be addressed. In particular, future ACT designs will need to better integrate current research in human judgment and decision making to improve the ease with which such tools can be used.Originality/value: From the perspective of consumer researchers, this paper highlights a set of key areas of enquiry that have the potential to substantially advance assistive consumer technology research.