Influence of consumer product categorization on digital sales: The mediating effect of conversion rate

Erik Ernesto Vazquez, Diana Davila Ruiz, Julio César García Martinez

Abstract


Purpose: The objective is to know what the mediating effect of the category of consumer products on sales performance is.

Methodology: Data from 216 e-commerce platforms were used using the Search-Experience-Trust (SEC) categorization. Two t tests were used to confirm significant differences between product categories and regression analyzes were performed to test the hypotheses.

Results: The results show that the ease of evaluating products before consumption has two main effects in electronic commerce: 1) they increase web traffic and 2) they decrease their conversion rate. However, the results also show that the ease of evaluating a product category directly influences online sales per visitor, since the mediating effect of the conversion rate is only partial.

Implications: This study contributes in practice to be able to determine predictive models related to the supply and demand of retail products in electronic commerce and shows a way to segment consumers who depend on their perceptions of product categories.

Originality/Value: This research, unlike what is in the literature, contributes to the study of electronic commerce from the perspective of the company, and not from the perspective of the consumer, in the performance of sales and conversion rates.

Keywords: Category Management; Information Economics; E-commerce; Perceived product quality, Conversion rate.


Full Text:

PDF

References


Adobe Systems Incorporated. (Diciembre de 2019). (Adobe Insights, Ed.) Recuperado el 15 de

junio de 2020, de https://es.slideshare.net/adobe/adi-consumer-electronics-report-2020.

Amblee, N., & Bui, T. (2011). Harnessing the Influence of Social Proof in Online Shopping: The Effect of Electronic Word of Mouth on Sales of Digital Microproducts. International Journal of Electronic Commerce, 16(2), 91–114. https://doi.org/10.2753/JEC1086-4415160205

Anderson, C. (2009). Free: The future of radical price. New York, New York, USA: Hyperion.

Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer Satisfaction, Market Share, and Profitability: Findings from Sweden. Journal of Marketing, 58(3), 53.

Arakji, R. Y., & Lang, K. R. (2010). Adoption and Diffusion of Business Practice Innovations: An Evolutionary Analysis. International Journal of Electronic Commerce, 15(1), 145–168.

https://doi.org/10.2753/JEC1086-4415150106

Ayanso, A., & Yoogalingam, R. (2009). Profiling Retail Web Site Functionalities and Conversion Rates: A Cluster Analysis. International Journal of Electronic Commerce, 14(1), 79–114. https://doi.org/10.2753/JEC1086-4415140103

Baden-Fuller, C., & Mangematin, V. (2013). Business models: A challenging agenda. Strategic Organization, 11(4), 418–427. https://doi.org/10.1177/1476127013510112

Berger, J., Sorensen, A. T., & Rasmussen, S. J. (2010). Positive Effects of Negative Publicity: When Negative Reviews Increase Sales. Marketing Science, 29(5), 815–827. https://doi.org/10.1287/mksc.1090.0557

Boush, D. M., & Loken, B. (1991). A process tracing study of brand extension evaluations. Journal of Marketing Research, 28, 16–28.

Bowler, W. M., Dahlstrom, R., Seevers, M. T., & Skinner, S. J. (2011). The Ties That Buy: The Role of Interfirm Social Contagion Across Customer Accounts. Journal of Personal Selling and Sales Management, 31(1), 7–20. https://doi.org/10.2753/PSS0885-3134310101

Brandt, C., Pahud de Mortanges, C., Bluemelhuber, C., & van Riel, A. C. R. (2011). Associative networks: A new approach to market segmentation. International Journal of Market Research, 53(2), 189. https://doi.org/10.2501/IJMR-53-2-187-208

Cardozo Vásquez, J. J., Hernandis Ortuño, B., & Ramírez Triana, N. Y. (2015). Aproximación a una categorización de los sistemas de productos: el uso y la experiencia del consumidor como configuradores. Innovar, 25(58), 125–142.

Christodoulides, G., Jevons, C., & Bonhomme, J. (2012). Memo to Marketers: Quantitative Evidence for Change -- How User-Generated Content Really Affects Brands. Journal of Advertising Research, 52(1), 53. https://doi.org/10.2501/JAR-52-1-053-064

De Figueiredo, J. (2000). Finding Sustainable Profitability in the E-commerce. MIT Sloan Management Review, 41, 41–52.Disponible en: https://sloanreview.mit.edu/article/finding-sustainable-profitability-in-electronic-commerce/

Dhar, R., & Wertenbroch, K. (2000). Consumer choice between hedonic and utilitarian goods. Journal of Marketing Research, 37, 60–71.Disponible en: http://journals.ama.org/doi/abs/10.1509/jmkr.37.1.60.18718

Ekelund, R., Mixon, F., & Ressler, R. (1995). Advertising and information: an empirical study of search, experience and credence goods. Journal of Economic Studies, 22,(2) 33–43.Disponible en: http://www.emeraldinsight.com/journals.htm?articleid=846002&show=abstract

Enders, A., Hungenberg, H., Denker, H.-P., & Mauch, S. (2008). The long tail of social networking. European Management Journal, 26(3), 199–211. https://doi.org/10.1016/j.emj.2008.02.002

Francis, J. E. (2009). Category-specific RECIPEs for internet retailing quality. Journal of Services Marketing, 23(7), 450–461. https://doi.org/10.1108/08876040910995248

Girard, T., & Dion, P. (2010). Validating the search, experience, and credence product classification framework. Journal of Business Research, 63(9-10), 1079–1087. https://doi.org/10.1016/j.jbusres.2008.12.011

Gupta, A., Su, B., & Walter, Z. (2004). An Empirical Study of Consumer Switching from Traditional to Electronic Channels : A Purchase-Decision Process Perspective. International Journal of Electronic Commerce, 8, 131–161. https://doi.org/10.1080/10864415.2004.11044302

Habibi, M. R., Laroche, M., & Richard, M.-O. (2014). Brand communities based in social media: How unique are they? Evidence from two exemplary brand communities. International Journal of Information Management, 34(2), 123–132. https://doi.org/10.1016/j.ijinfomgt.2013.11.010

Hoffman, D. L., & Novak, T. P. (1997). A new marketing paradigm for electronic commerce. Information Society. Retrieved from http://www.tandfonline.com/doi/abs/10.1080/019722497129278

Hossein M.M.J., Rezaei D., Nourbakhsh1M., Poursaeedi1 & Reza A.,(2012). An Analysis of Factors Affecting on Online Shopping Behavior of Consumers. International Journal of Marketing Studies; 4(5); 2012. Doi:10.5539/ijms.v4n5p81

Internet Retailer Top 500 Guide. (2018). E-retailer Magazine. Retrieved from http://www.top500guide.com

Korgaonkar, P., Silverblatt, R., & Girard, T. (2006). Online retailing, product classifications, and consumer preferences. Internet Research, 16(3), 267–288. https://doi.org/10.1108/10662240610673691

Kumar, V., Bhaskaran, V., Mirchandani, R., & Shah, M. (2013). Practice Prize Winner — Creating a Measurable Social Intangibles and Tangibles for Hokey Pokey Creating a Measurable Social Media Marketing Strategy : Increasing the Value and ROI of Intangibles and Tangibles for Hokey Pokey. Marketing Science, 32, 194–212. https://doi.org/10.1287/mksc.1120.0768

Laroche, M., Habibi, M. R., & Richard, M.-O. (2013). To be or not to be in social media: How brand loyalty is affected by social media? International Journal of Information Management, 33(1), 76–82.https://doi.org/http://dx.doi.org/10.1016/j.ijinfomgt.2012.07.003

Lal, R., & Sarvary, M. (1999). When and How Is the Internet Likely to Decrease Price Competition? Marketing Science, 18(4), 485–503. https://doi.org/10.1287/mksc.18.4.485

Lee, M., & Youn, S. (2009). Electronic word of mouth (eWOM): How eWOM platforms influence consumer product judgement. International Journal of Advertising, 28(3), 473. https://doi.org/10.2501/S0265048709200709

Li, M., Dong, Z. Y., & Chen, X. (2012). Factors influencing consumption experience of mobile commerce: A study from experiential view. Internet Research, 22(2), 120–141. https://doi.org/10.1108/10662241211214539

Lilien, G. L., & Yoon, E. (1990). The Timing of Competitive Market Entry: An Exploratory Study of New Industrial Products. Management Science, 36(5), 568–585. https://doi.org/10.1287/mnsc.36.5.568

Nakayama, M., Sutcliffe, N., & Wan, Y. (2010). Has the web transformed experience goods into search goods? Electronic Markets, 203(3-4), 251–262. https://doi.org/10.1007/s12525-010-0041-z

Neisser, U. (1976). Cognition and reality: Principles and implications of cognitive psychology. New York, United States: W. H. Freeman and Company.

Nelson, P. (1970). Information and consumer behavior. Journal of Political Economy, 78, 311–329. Disponible en: http://www.jstor.org/stable/10.2307/1830691

Nelson, P. (1974). Advertising as information. Journal of Political Economy, 82(4), 729–754. https://doi.org/10.1086/451461

Ralitza Nikolaeva (2005) Strategic Determinants of Web Site Traffic in On-Line

• Retailing, International Journal of Electronic Commerce, 9:4, 113-132 https://doi.org/10.1080/10864415.2003.11044344

Obal, M., Burtch, G., & Kunz, W. (2011). How Can Social Networking Sites Help Us? The Role of Online Weak Ties in the IMC Mix. International Journal of Integrated Marketing Communications, 3, 33–47. Disponible en: http://community.mis.temple.edu/obal/files/2012/02/Obal-Burtch-and-Kunz-2011-IJIMC.pdf

Oberoi, P., Patel, C., & Haon, C. (2016). Technology Sourcing for Website Personalization: A Supply- and Demand-Side Perspective. In K. Kim (Ed.), Celebrating America’s Pastimes: Baseball, Hot Dogs, Apple Pie and Marketing? (pp. 449–462). Springer, Cham. https://doi.org/10.1007/978-3-319-26647-3

Oestreicher-Singer, G., & Sundararajan, A. (2012). Recommendation networks and the long tail of electronic commerce. MIS Quarterly, 36, 65–83.

Ozanne, J. L., Brucks, M., & Grewal, D. (1992). A Study of Information Search Behavior During the Categorization of New Products. Journal of Consumer Research, 18(4), 452. https://doi.org/10.1086/209273

Sánchez H. (2017). Customer Journey Personalization". Cómo aumentar la tasa de conversión de tu eCommerce, D/A Retail: Distribución Actualidad, ISSN-e 1576-6063, Nº. 477, 2017, pág. 43.

Smith, A. N., Fischer, E., & Yongjian, C. (2012). How Does Brand-related User-generated Content Differ across YouTube, Facebook, and Twitter? Journal of Interactive Marketing, 26(2), 102–113. https://doi.org/10.1016/j.intmar.2012.01.002

Suominen K (2015). Fueling the online trade revolution a new customs security framework to secure and facilitate small business e-commerce. Center for Strategic & International Studies, Washington, DC.

Statista. (2019). eCommerce Digital Market Outlook 2019. New York, United States.

Tu, Y., & Lu, M. (2006). An Experimental and Analytical Study of On-Line Digital Music Sampling Strategies. International Journal of Electronic Commerce, 10(3), 39–70. https://doi.org/10.2753/JEC1086-4415100302

Vazquez, E. E. (2019). Effect of e-retail product category on performance. In G. Granata, A. M. Tartaglione, & T. Tsiakis (Eds.), Predicting Trends and Building Strategies for Consumer Engagement in Retail Environments (pp. 152–168). https://doi.org/10.4018/978-1-5225-7856-7.ch008

Vazquez, E. E. (2020). Effect of an e-retailer’s product category and social media platform selection on perceived quality of e-retail products. Electronic Markets, (Ahead-of-Print).

Viswanathan, M., & Childers, T. L. (1999). Understanding How Product Attributes Influence Product Categorization: Development and Validation of Fuzzy Set-Based Measures of Gradedness in Product Categories. Journal of Marketing Research, 36(1), 75–94. https://doi.org/10.2307/3151916

Wen, C., Tan, B. C. Y., & Chang, K. T.-T. (2009). Advertising effectiveness on social network sites: An investigation of tie strength, endorser expertise and product type on consumer purchase intention. International Conference on Information Systems, 31th, 1–19. http://aisel.aisnet.org/icis2009/151/

Westbrook G., Angus A., (2020). Top 10 global consumer Trends. Euromonitor international, January 2020

Xiao, B., & Benbasat, I. (2007). E-commerce product recommendation agents: Use, characteristics, and impact. MIS Quarterly, 31(1), 137–209. https://doi.org/10.2307/25148784

Zailskaite-Jakste, L., & Kuvykaite, R. (2012). Implementation of Communication in Social Media by Promoting Studies at Higher Education Institutions. Journal of Engineering Economics, 23(2), 174–188. https://doi.org/10.5755/j01.ee.23.2.1550




Copyright (c) 2020 European Journal of Applied Business and Management

ISSN: 2183-5594 

Indexing: GOOGLE SCHOLAR - LATINDEX - DRJI - ICI JOURNALS MASTER - REDIB