The fitness of product information: Evidence from online recommendations

Abstract Recently, online recommendations have become a main channel for enterprise promotion; however, little evidence has been directed toward understanding the fitness of products information in the online recommendations context. The current study examines the fitness of recommended products information and budget of customers selves’ situation tries to find the key factors that buy exceed the recommended products in the online channels. Drawing upon the customer satisfaction index (CSI) and the price information seeking behavior (PISB) model, this paper proposes a research model and validates it in the context of recommendations from the well-known e-commerce websites from 342 participants. With Amos 18.0 this study finds that, in the online environment, the constructs of CSI are evaluated in online recommendations, in addition, finds the fitness of products information can be vital factor impact perceived quality, value, satisfaction, and buy extra. Moreover, the budget constraints of customers positively impact price comparison, and price comparisons negatively impact satisfactions. This research sheds light on the buy extra behavior in online recommendations and provides insights into the marketing promotion strategies in electronic markets.

[1]  A. Parasuraman,et al.  The Behavioral Consequences of Service Quality , 1996 .

[2]  John Riedl,et al.  E-Commerce Recommendation Applications , 2004, Data Mining and Knowledge Discovery.

[3]  Yan Zhu,et al.  Customer Satisfaction Theory Applied in the Housing Industry: An Empirical Study of Low-Priced Housing in Beijing , 2006 .

[4]  E. Anderson,et al.  The Antecedents and Consequences of Customer Satisfaction for Firms , 1993 .

[5]  B. Mathews,et al.  Customer satisfaction: contrasting academic and consumers’ interpretations , 2001 .

[6]  Raquel Sánchez-Fernández,et al.  Efficiency and quality as economic dimensions of perceived value: Conceptualization, measurement, and effect on satisfaction , 2009 .

[7]  L. Harris,et al.  The four levels of loyalty and the pivotal role of trust: a study of online service dynamics , 2004 .

[8]  Kirk L. Wakefield,et al.  Who Are the Price Vigilantes? An Investigation of Differentiating Characteristics Influencing Price Information Processing , 1993 .

[9]  Abhijit Biswas,et al.  The effects of discount level, price consciousness and sale proneness on consumers' price perception and behavioral intention , 2002 .

[10]  P. Wilton,et al.  Models of Consumer Satisfaction Formation : An Extension , 1988 .

[11]  Jyh-Shen Chiou,et al.  The antecedents of consumers' loyalty toward Internet Service Providers , 2004, Inf. Manag..

[12]  Hsiu-Yuan Hu,et al.  Preliminary research on customer satisfaction models in Taiwan: A case study from the automobile industry , 2011, Expert Syst. Appl..

[13]  Forrest V. Morgeson,et al.  Customer Satisfaction and Stock Prices: High Returns, Low Risk: , 2006 .

[14]  John Riedl,et al.  Recommender systems in e-commerce , 1999, EC '99.

[15]  M. Gilly,et al.  eTailQ: dimensionalizing, measuring and predicting etail quality , 2003 .

[16]  R. Oliver,et al.  An Empirical Test of the Consequences of Behavior-and Outcome-Based Sales Control Systems , 1994 .

[17]  Daniel M. Cable,et al.  Person–Organization Fit, Job Choice Decisions, and Organizational Entry☆ , 1996 .

[18]  K. Kristensen,et al.  Customer satisfaction measurement at Post Denmark: Results of application of the European Customer Satisfaction Index Methodology , 2000 .

[19]  Manohar U. Kalwani,et al.  Consumer Price and Promotion Expectations: An Experimental Study , 1992 .

[20]  R. Teas,et al.  Expectations, Performance Evaluation, and Consumers’ Perceptions of Quality , 1993 .

[21]  Young-Gul Kim,et al.  Extending the TAM for a World-Wide-Web context , 2000, Inf. Manag..

[22]  Bingyong Tang,et al.  Recommender System in E-commerce , 2012, ICEE 2012.

[23]  Jyh-Jeng Wu,et al.  Trust factors influencing virtual community members: A study of transaction communities , 2010 .

[24]  J. Hair Multivariate data analysis , 1972 .

[25]  Kin Fun Li,et al.  Recommendation based on rational inferences in collaborative filtering , 2009, Knowl. Based Syst..

[26]  Alan Dick,et al.  Customer loyalty: Toward an integrated conceptual framework , 1994 .

[27]  Peter E. Rossi,et al.  Determinants of Store-Level Price Elasticity , 1995 .

[28]  Izak Benbasat,et al.  E-Commerce Product Recommendation Agents: Use, Characteristics, and Impact , 2007, MIS Q..

[29]  Valerie J. Trifts,et al.  Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids , 2000 .

[30]  Zhaohua Deng,et al.  Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China , 2010, Int. J. Inf. Manag..

[31]  B. Ratchford,et al.  Can price dispersion in online markets be explained by differences in e-tailer service quality? , 2002 .

[32]  V. Mummalaneni,et al.  An empirical investigation of Web site characteristics, consumer emotional states and on-line shopping behaviors , 2005 .

[33]  Kuang-Wen Wu,et al.  Validating the American Customer Satisfaction Index Model in the Online Context: An Empirical Study of U.S. Consumer Electronics E-Tailers , 2007 .

[34]  Izak Benbasat,et al.  Explanations From Intelligent Systems: Theoretical Foundations and Implications for Practice , 1999, MIS Q..

[35]  Lin Shi,et al.  An laboratory experiment for comparing effectiveness of three types of online recommendations , 2008 .

[36]  Izak Benbasat,et al.  Evaluating the Impact of DSS, Cognitive Effort, and Incentives on Strategy Selection , 1999, Inf. Syst. Res..

[37]  Jessica Santos E‐service quality: a model of virtual service quality dimensions , 2003 .

[38]  B. Bai,et al.  The impact of website quality on customer satisfaction and purchase intentions : evidence from Chinese online visitors , 2008 .

[39]  Wolfgang Maass,et al.  In-store consumer behavior: How mobile recommendation agents influence usage intentions, product purchases, and store preferences , 2010, Comput. Hum. Behav..

[40]  Barry J. Babin,et al.  How Quality, Value, Image, and Satisfaction Create Loyalty at a Chinese Telecom , 2009 .

[41]  Jorge M. Oliveira-Castro,et al.  Effects of base price upon search behavior of consumers in a supermarket: An operant analysis , 2003 .

[42]  R. Oliver A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions , 1980 .

[43]  T. Wilson,et al.  The Impact of Cause Branding on Consumer Reactions to Products: Does Product/Cause 'Fit' Really Matter? , 2004 .

[44]  Richard W. Scamell,et al.  The Effects of Information System User Expectations on Their Performance and Perceptions , 1993, MIS Q..

[45]  R. Avery Determinants of Search for Nondurable Goods: An Empirical Assessment of the Economics of Information Theory , 1996 .

[46]  V. C. S. Heung,et al.  Assessing Tourists’ Satisfaction with Shopping in the Hong Kong Special Administrative Region of China , 2000 .

[47]  Chang Liu,et al.  Exploring the factors associated with Web site success in the context of electronic commerce , 2000, Inf. Manag..

[48]  Jungkun Park,et al.  The role of interactivity in e-tailing: Creating value and increasing satisfaction , 2010 .

[49]  Satya Menon,et al.  Corporate Sponsorships of Philanthropic Activities: When Do They Impact Perception of Sponsor Brand? , 2003 .

[50]  Arnold Kamis,et al.  Using an Attribute-Based Decision Support System for User-Customized Products Online: An Experimental Investigation , 2008, MIS Q..

[51]  K. B. Monroe,et al.  The Effects of Price - Comparison Advertising on Buyers'''' Perceptions of Acquisition Value, Transa , 1998 .

[52]  Rex Eugene Pereira,et al.  Influence of Query-Based Decision Aids on Consumer Decision Making in Electronic Commerce , 2001, Inf. Resour. Manag. J..

[53]  R. Hallowell The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study , 1996 .

[54]  Kallol Kumar Bagchi,et al.  An assessment of customers' e-service quality perception, satisfaction and intention , 2010, Int. J. Inf. Manag..

[55]  Moez Limayem,et al.  Understanding information systems continuance: The case of Internet-based learning technologies , 2008, Inf. Manag..

[56]  Francisco J. Molina-Castillo,et al.  Customer Knowledge Management and E-commerce: The role of customer perceived risk , 2008, Int. J. Inf. Manag..

[57]  C. Berné,et al.  Factors involved in price information-seeking behaviour , 2001 .

[58]  She-I Chang,et al.  Successful implementation of collaborative product commerce: An organizational fit perspective , 2011, Decis. Support Syst..

[59]  Tak-Kee Hui,et al.  Tourists’ satisfaction, recommendation and revisiting Singapore , 2007 .

[60]  Peter R. Dickson,et al.  Price Search in the Retail Grocery Market , 1996 .

[61]  Heng-Chiang Huang,et al.  Online consumer loyalty: Why e-tailers should seek a high-profile leadership position , 2009, Comput. Hum. Behav..

[62]  Berend Wierenga,et al.  The Integration of Marketing Problem-Solving Modes and Marketing Management Support Systems , 1997 .

[63]  A. Gustafsson,et al.  The Evolution and Future of National Customer Satisfaction Index Models , 2001 .

[64]  M. Bruhn,et al.  Theory, development and implementation of national customer satisfaction indices: The Swiss Index of Customer Satisfaction (SWICS) , 2000 .

[65]  Yudi Fernando,et al.  Factors influencing intention to use e-government services among citizens in Malaysia , 2009, Int. J. Inf. Manag..

[66]  G. Stigler The Economics of Information , 1961, Journal of Political Economy.

[67]  Yuan-Chun Jiang,et al.  Maximizing customer satisfaction through an online recommendation system: A novel associative classification model , 2010, Decis. Support Syst..

[68]  John G. Lynch,et al.  Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces , 1997 .

[69]  S.-H. Hsu,et al.  Developing an index for online customer satisfaction: Adaptation of American Customer Satisfaction Index , 2008, Expert Syst. Appl..

[70]  Kil-Soo Suh,et al.  Impact of communication medium on task performance and satisfaction: an examination of media-richness theory , 1999, Inf. Manag..

[71]  Metin Kozak,et al.  Comparative assessment of tourist satisfaction with destinations across two nationalities , 2001 .

[72]  Armelle Brun,et al.  Behavioral similarities for collaborative recommendations , 2008, J. Digit. Inf. Manag..

[73]  C. Fornell A National Customer Satisfaction Barometer: The Swedish Experience: , 1992 .

[74]  H. HsuS. Developing an index for online customer satisfaction , 2008 .

[75]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[76]  C. Fornell,et al.  Customer Satisfaction, Market Share, and Profitability: Findings from Sweden , 1994 .

[77]  G. Coenders,et al.  Application of the European Customer Satisfaction Index to Postal Services. Structural Equation Models versus Partial Least Squares , 2002 .

[78]  R. Hill,et al.  The impact of perceived corporate social responsibility on consumer behavior , 2006 .

[79]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[80]  Sandra Streukens,et al.  Comfort your online customer: quality, trust and loyalty on the internet , 2004 .

[81]  Kent B. Monroe,et al.  Framing Effects on Buyers' Subjective Product Evaluations , 1987 .

[82]  Dan Jong Kim,et al.  Customer self-service systems: The effects of perceived Web quality with service contents on enjoyment, anxiety, and e-trust , 2007, Decis. Support Syst..

[83]  Eric C. Turner,et al.  Innovation diffusion and technology acceptance: The case of PKI technology , 2006 .

[84]  C. Fornell,et al.  Foundations of the American Customer Satisfaction Index , 2000 .

[85]  Dennis F. Galletta,et al.  Cognitive Fit: An Empirical Study of Information Acquisition , 1991, Inf. Syst. Res..

[86]  Erin Sy,et al.  Internet differential pricing: Effects on consumer price perception, emotions, and behavioral responses , 2009, Comput. Hum. Behav..

[87]  Lihua Huang,et al.  Brand extension of online technology products: Evidence from search engine to virtual communities and online news , 2010, Decis. Support Syst..

[88]  Pei-Chen Sun,et al.  The design of instructional multimedia in e-Learning: A Media Richness Theory-based approach , 2007, Comput. Educ..

[89]  J. Hagel,et al.  Net gain: Expanding markets through virtual communities , 1999 .

[90]  Peretz Shoval,et al.  Evaluation of an ontology-content based filtering method for a personalized newspaper , 2008, RecSys '08.

[91]  Manohar U. Kalwani,et al.  A Price Expectations Model of Customer Brand Choice , 1990 .

[92]  Jung-Yu Lai,et al.  How knowledge map fit and personalization affect success of KMS in high-tech firms , 2009 .

[93]  C. Fornell,et al.  The American Customer Satisfaction Index: Nature, Purpose, and Findings , 1996 .

[94]  C. Cassel,et al.  Modelling customer satisfaction and loyalty on aggregate levels: Experience from the ECSI pilot study , 2001 .

[95]  A. Parasuraman,et al.  SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. , 1988 .

[96]  Oh Byung Kwon,et al.  "I know what you need to buy": context-aware multimedia-based recommendation system , 2003, Expert Syst. Appl..

[97]  Martin Nemzow,et al.  Ecommerce "Stickiness" for Customer Retention , 2000 .

[98]  Kun Chang Lee,et al.  Understanding factors affecting trust in and satisfaction with mobile banking in Korea: A modified DeLone and McLean's model perspective , 2009, Interact. Comput..

[99]  S. Jang,et al.  Price bundling presentation and consumer's bundle choice: the role of quality certainty. , 2011 .

[100]  F. Reichheld,et al.  E-LOYALTY: YOUR SECRET WEAPON ON THE WEB , 2003 .

[101]  Xiangmin Zhang,et al.  Use of collaborative recommendations for web search: an exploratory user study , 2008, J. Inf. Sci..