Yakov Bart

Are the Drivers and Role of Online Trust the Same for All Web Sites and Consumers?: A Large-Scale Exploratory Empirical Study

This research investigates the determinants and role of consumer trust in e-business. It examines consumer perceptions of trust in a Web site and addresses the following key research questions: What factors influence consumer trust in a Web site and what specific Web site trust cues are associated with these factors? How does trust affect consumer behavioral intent on a Web site? To address these questions, we develop a conceptual model that links consumer perceptions of Web site characteristics, consumer characteristics and demographics to perceptions of trust in a Web site, and trust to behavioral intent related to a Web site. We also examine whether trust mediates the relationship between Web site and consumer characteristics and behavioral intent related to the Web site. We test our hypotheses in a large-scale empirical study that estimates this model from 6831 consumers across 25 Web sites and eight industry categories. We validate the model using a holdout sample. The results show that Web site, consumer, category and demographic variables can explain 76% of the variance in trust. Web site characteristics such as privacy and security, navigation, presentation, brand, and advice account for as much as 98% of this explained variance in Web site trust. Surprisingly, over 80% of the explained variance in Web trust is due to factors other than privacy and security-mainly navigation, brand, advice, absence of errors, and presentation. We also find that trust mediates the relationships between Web site and consumer characteristics and behavioral intent related to Web sites. The results offer important implications for Web site strategies that include the manipulation of factors influencing Web site trust to favorably impact consumer behavior at the Web site

Which Products Are Best Suited to Mobile Advertising? A Field Study of Mobile Display Advertising Effects on Consumer Attitudes and Intentions

Mobile advertising is one of the fastest-growing advertising formats. In 2013, global spending on mobile advertising was approximately

Customer Engagement in a Big Data World

16.7 billion, and it is expected to exceed

Tailored Cheap Talk

62.8 billion by 2017. The most prevalent type of mobile advertising is mobile display advertising (MDA), which takes the form of banners on mobile web pages and in mobile applications. This article examines which product characteristics are likely to be associated with MDA campaigns that are effective in increasing consumers’ (1) favorable attitudes toward products and (2) purchase intentions. Data from a large-scale test-control field experiment covering 54 U.S. MDA campaigns that ran between 2007 and 2010 and involved 39,946 consumers show that MDA campaigns significantly increased consumers’ favorable attitudes and purchase intentions only when the campaigns advertised products that were higher (vs. lower) involvement and utilitarian (vs. hedonic). The authors explain this finding using established theories of information processing and persuasion and suggest that when MDAs work effectively, they do so by triggering consumers to recall and process previously stored product information.

Local Market Characteristics and Online-to-Offline Commerce: An Empirical Analysis of Groupon

This paper aims to propose that the literature on customer engagement has emphasized the benefits of customer engagement to the firm and, to a large extent, ignored the customers’ perspective. By drawing upon co-creation and other literature, this paper attempts to alleviate this gap by proposing a strategic framework that aligns both the customer and firm perspectives in successfully creating engagement that generates value for both the customer and the bottom line.,A strategic framework is proposed that includes the necessary firm resources, data, process, timeline and goals for engagement, and captures customers’ motives, situational factors and preferred engagement styles.,The authors argue that sustainability of data-driven customer engagement requires a dynamic and iterative value generation process involving customers recognizing the value of engagement behaviours and firm’s ability to capture and passing value back to customers.,This paper proposes a dynamic strategic value-creation framework that comprehensively captures both the customer and firm perspectives to data-driven customer engagement.

Tailored Cheap Talk: The Effects of Privacy Policy On Ad Content and Market Outcomes

We consider a cheap-talk game in which the persuader is able to collect information about the receivers preferences in order to tailor communication and induce a favorable action. We find that the sender prefers not to learn the receivers preferences with certainty, but to remain in a state of partial willful ignorance. The receiver prefers complete privacy except when information is necessary to induce communication from the sender. Surprisingly, joint welfare is always maximized by the senders first-best level of information acquisition. The implications of our results are discussed in the contexts of online advertising, sales, dating and job search.

When Taking Risks Reduces Risk Exposure: Covariance Information and Risk Perception Among Lay Investors

We investigate the factors that affect the growth of Groupon, the leading online daily deals platform. We concentrate on the online-to-offline (O2O) aspect of the business that differentiates it from other e-commerce platforms—its strong connection to local markets. We focus on travel cost and store density, the key local characteristics that affect consumer deal demand and merchant deal offering. Using a comprehensive longitudinal data set on deal offerings and sales across local markets, and combining it with local market characteristics, we estimate a simultaneous equation model of the weekly number of deal offerings and deal sales characterizing the two-sided nature of the platform. We find that the word-of-mouth effect on the consumer side and the observational learning effect on the merchant side contribute to and reinforce the expansion of a two-sided platform. However, a larger number of deals intensifies the competition, which then lowers per deal sales and limits the number of deal offerings. We...

Product Seeding: Word-of-Mouth Effects For and Beyond the Focal Product

We analyze persuasion settings in which the seller holds information abosut the customer’s preferences that can be used to tailor communication.

Mobile Advertising: A Framework and Research Agenda

Why do people fail to diversify risk in their investment portfolios? We study how lay investors (people with low financial literacy) invest in financial assets whose past or expected returns are provided. Although investing in assets with negatively correlated returns reduces portfolio risk (i.e., reduces portfolio fluctuations), we find that lay investors instead prefer investing in assets with positively correlated returns, which results in less diversified and riskier investment portfolios than intended. Using a mixed-method approach, we find that lay investors rely on a lay perception of portfolio risk: assets with positively correlated returns feel more fluent (more familiar, simple, and predictable), and thus are erroneously perceived as less risky. We find that lay investors succeed in forming diversified, lower-risk portfolios when they are provided with aggregate portfolio returns, or when—paradoxically—they are encouraged to take more risk.

Spillover Effects in Seeded Word-of-Mouth Marketing Campaigns

Abstract In a classic seeded WOM marketing campaign, a company sends product samples to a selected group of influencers, and encourages them share the product information and their own opinions with other consumers. Positive effects include more WOM for the focal product in the target segment, but also in additional segments. But there are additional spillover effects on the brand and the product category level and they are negative. More conversations about the focal product reduced the “off-topic” conversations about other brands in the same category as well as other products of the same brand. These negative brand and category spillover effects are stronger when the focal product is of a more functional nature. Marketers tend to consider only positive spillovers to be beneficial for a company, but negative spillovers should not be immediately classified as “bad news.” There are upsides to this effect that managers can use in their favor.