Kristin Diehl

Smart Agents: When Lower Search Costs for Quality Information Increase Price Sensitivity

Recent consumer research suggests that lowering search costs for quality information reduces consumer price sensitivity by creating greater perceived differentiation among brands (e.g., Kaul and Wittink 1995; Lynch and Ariely 2000). We argue that lowering quality search costs by smart agents can have the opposite effect on differentiation and price sensitivity. Smart agents screen through a universe of alternatives, recommending only a handful well-matched to the customers quality preferences. In this research, we ask and answer the following questions: In markets in which price and quality are uncorrelated, will the use of screening agents increase or decrease prices paid compared to searching from an unordered list of options? Will increasing the size of the stores underlying assortment increase or decrease prices paid when options have been screened on quality? In markets where higher priced goods have higher quality, will the use of screening agents increase or decrease prices paid and quality selected? Experiments 1 and 2 test the effect of quality screening when price and quality are uncorrelated. We then present an analytic model for markets in which price and quality are correlated. We deduce that ordering can cause price and quality to increase or decrease depending on the slope of the price-quality relationship in comparison with the relative importance of price in the utility function. We find support for this model in experiment 3. Copyright 2003 by the University of Chicago.

Now or Never: Effects of Limited Purchase Opportunities on Patterns of Regret Over Time

Prior research has demonstrated that actions are regretted more than inactions in the short term. We show that, in limited purchase opportunities-situations where the purchase decision cannot be reversed-not purchasing (inaction) is seen as a loss and is associated with greater short-term regret than purchasing, reversing the omission bias. With respect to long-term regret, we use coping and availability mechanisms to suggest that, contrary to prior findings, inaction (nonpurchase) regrets decrease over time. We also argue that action (purchase) regrets should increase over time, but only when long-term utility is low. We support our predictions with a field study and two laboratory experiments. (c) 2006 by JOURNAL OF CONSUMER RESEARCH, Inc..

1995 Feels So Close Yet So Far The Effect of Event Markers on Subjective Feelings of Elapsed Time

Why does an event feel more or less distant than another event that occurred around the same time? Prior research suggests that characteristics of an event itself can affect the estimated date of its occurrence. Our work differs in that we focused on how characteristics of the time interval following an event affect people’s feelings of elapsed time (i.e., their feelings of how distant an event seems). We argue that a time interval that is punctuated by a greater number of accessible intervening events related to the target event (event markers) will make the target event feel more distant, but that unrelated intervening events will not have this effect. In three studies, we found support for the systematic effect of event markers. The effect of markers was independent of other characteristics of the event, such as its memorability, emotionality, importance, and estimated date, a result suggesting that this effect is distinct from established dating biases.

How taking photos increases enjoyment of experiences.

Experiences are vital to the lives and well-being of people; hence, understanding the factors that amplify or dampen enjoyment of experiences is important. One such factor is photo-taking, which has gone unexamined by prior research even as it has become ubiquitous. We identify engagement as a relevant process that influences whether photo-taking will increase or decrease enjoyment. Across 3 field and 6 lab experiments, we find that taking photos enhances enjoyment of positive experiences across a range of contexts and methodologies. This occurs when photo-taking increases engagement with the experience, which is less likely when the experience itself is already highly engaging, or when photo-taking interferes with the experience. As further evidence of an engagement-based process, we show that photo-taking directs greater visual attention to aspects of the experience one may want to photograph. Lastly, we also find that this greater engagement due to photo-taking results in worse evaluations of negative experiences. (PsycINFO Database Record

Photographic Memory: The Effects of Volitional Photo-Taking on Memory for Visual and Auditory Aspects of an Experience

How does volitional photo taking affect unaided memory for visual and auditory aspects of experiences? Across one field and three lab studies, we found that, even without revisiting any photos, participants who could freely take photographs during an experience recognized more of what they saw and less of what they heard, compared with those who could not take any photographs. Further, merely taking mental photos had similar effects on memory. These results provide support for the idea that photo taking induces a shift in attention toward visual aspects and away from auditory aspects of an experience. Additional findings were in line with this mechanism: Participants with a camera had better recognition of aspects of the scene that they photographed than of aspects they did not photograph. Furthermore, participants who used a camera during their experience recognized even nonphotographed aspects better than participants without a camera did. Meta-analyses including all reported studies support these findings.

Savoring an Upcoming Experience Affects Ongoing and Remembered Consumption Enjoyment

Five studies, using diverse methodologies, distinct consumption experiences, and different manipulations, demonstrate the novel finding that savoring an upcoming consumption experience heightens enjoyment of the experience both as it unfolds in real time (ongoing enjoyment) and when it is remembered (remembered enjoyment). This theory predicts that the process of savoring an upcoming experience creates affective memory traces that are reactivated and integrated into the actual and remembered consumption experience. Consistent with this theorizing, factors that interfere with consumers’ motivation, ability, or opportunity to form or retrieve affective memory traces of savoring an upcoming experience limit the effect of savoring on ongoing and remembered consumption enjoyment. Affective expectations, moods, imagery, and mindsets do not explain the observed findings.

Introduction to the special theme on Internet marketing

The call for papers identified a set of related Internet marketing themes that were intended to capture the key research topics in this new and rapidly evolving subject area. Three diverse papers have been accepted for a special collection of papers that focus on different aspects of Internet marketing strategy. Based on the thematic areas identified in the call for papers, the authors Corley, Jourdan and Ingram developed a framework to assess the current research landscape of published papers in the top IS and marketing journals. Such an assessment of research topics and themes, use of different methodologies and trends over time is an important activity because a review of this type gives academics an overview of current and historical research approaches, and also gives perspective on the relative scale of efforts in different thematic areas. It can also be used to identify key research articles in specific areas and, therefore, is of great value to young researchers in the identification of a research problem, in particular PhD researchers and academics new to the field. Another benefit of an overview of the published research is to identify possible gaps and omissions in the literature, as well as to recognize future research trends. The authors’ evaluation of research literature provides fascinating insights into academic developments in the field of Internet marketing, which deserve further discussion. An immediate observation that can be made is that IS research focuses on business related topics rather than technical ones, e.g. on business models, advertising and business performance in an online environment. This conclusion may seem obvious to IS researchers, but it may not always be clear to colleagues from other business disciplines, such as strategy and marketing, that IS researchers engage in research that crosses business and technology boundaries. The assessment of research methodologies identifies that the most prevalent approach is formal theory and literature review, which accounted for one quarter of all research methodologies. The authors interpret this finding as being indicative of a relatively new topic. Another interpretation is that it reflects the emphasis of academics on theoretical discussion and rigour, possibly with less importance being attached to relevance. Although formal literature reviews may be relevant to business managers, it is more likely that literature reviews are aimed almost exclusively at the academic community. Practising managers and academics who are more interested in topical and relevant research that has practical benefits are more likely to gain insights from empirically focused research supported by research frameworks and theoretical underpinnings. It is therefore encouraging that original data analysis in the form of sample surveys and field work based on primary data accounted for about 40 percent of published research. Two important thematic gaps are identified by the authors: search strategies and web 2.0. Given the strategic and commercial importance of search strategies in consumer e-commerce, the paucity of research in this area is rather surprising. Of the 17 papers published on search, only four contained primary data: two survey papers, one field study and one field experiment. Therefore, the second paper of this special theme by Nottorf and Funk is a timely and important contribution. Nottorf and Funk’s research into paid search is an excellent example of field work using primary data and employing sophisticated modelling techniques to capture important and subtle differences in performance based on a detailed analysis of key words and consumer behaviour in a cross-sectional study. This type of research highlights the advantages of researchers getting close to the phenomena of interest in order C. P. Holland (*) University of Manchester, Manchester Business School, Booth Street West, M15 6PB Manchester, UK e-mail: chris.holland@mbs.ac.uk

The Effects of Benefit and Feature-Based Assortment Structures on Similarity Perceptions and Strength of Preference

Retailers can structure their assortments in a nearly infinite number of ways. Our research studies the effects of two prevalent assortment structures – those which group items according to features and those which group items according to benefits. We show that relative to feature-based structures, benefit-based structures heighten perceptions of similarity among items in an assortment. These effects have important implications for consumers’ strength of preference: when choosing from benefit as opposed to feature-based structures consumers pick lower priced items and deem their top choices more similarly satisfying. We also identify assortment and consumer factors that moderate these effects: high correspondence of features to benefits in the underlying assortment and whether consumers hold a shopping goal which maps onto a benefit-based structure. Either situation will attenuate the effects of different assortment structures on perceived similarity and strength of preference.