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How do social-based cues influence consumers’ online purchase decisions? An event-related potential study

Author

Listed:
  • Qiuzhen Wang

    (Zhejiang University)

  • Liang Meng

    (Zhejiang University)

  • Manlu Liu

    (Rochester Institute of Technology)

  • Qi Wang

    (NetEase, Inc)

  • Qingguo Ma

    (Zhejiang University)

Abstract

Product rating and sales are two important social-based cues in online shopping. This study applies the event-related potential (ERP) approach to explore the underlying neural mechanism of the joint influence of these two cues on consumers’ decision-making. Behavioral data show that product rating has a greater impact on the purchasing rate than sales, which positively moderates the latter’s effect and supports cue-diagnosticity theory. Electrophysiological data provide further explanations for the observed behavioral pattern. Analyses of main ERP components suggest that consumers go through a series of cognitive processes from processing of perceived risk (N2) and informational conflict (N400) to evaluative categorization (LPP) before making the final purchasing decision. Specifically, product rating significantly influences the risk perception while the combination of high rating and low sales elicits significant cognitive conflict. Both cues are adopted by consumers to make an overall evaluation based on their similarity to the criterion.

Suggested Citation

  • Qiuzhen Wang & Liang Meng & Manlu Liu & Qi Wang & Qingguo Ma, 2016. "How do social-based cues influence consumers’ online purchase decisions? An event-related potential study," Electronic Commerce Research, Springer, vol. 16(1), pages 1-26, March.
    • Handle: RePEc:spr:elcore:v:16:y:2016:i:1:d:10.1007_s10660-015-9209-0
    DOI: 10.1007/s10660-015-9209-0
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    References listed on IDEAS

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    Cited by:

    1. Tibert Verhagen & Daniel Bloemers, 2018. "Exploring the cognitive and affective bases of online purchase intentions: a hierarchical test across product types," Electronic Commerce Research, Springer, vol. 18(3), pages 537-561, September.
    2. Liang Xiao & Feipeng Guo & Fumao Yu & Shengnan Liu, 2019. "The Effects of Online Shopping Context Cues on Consumers’ Purchase Intention for Cross-Border E-Commerce Sustainability," Sustainability, MDPI, vol. 11(10), pages 1-24, May.
    3. Yu, Haihong & Liang, Yongchong & Wang, Ailian & Fan, Qi & Jin, Jia, 2022. "Pay online or pay on delivery? An ERP study of how payment methods affect online purchase decisions for search vs. experience products," Journal of Economic Psychology, Elsevier, vol. 91(C).
    4. Wang, Cuicui & Li, Yiyang & Fu, Weizhong & Jin, Jia, 2023. "Whether to trust chatbots: Applying the event-related approach to understand consumers’ emotional experiences in interactions with chatbots in e-commerce," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    5. Qiang Wei & Dong Lv & Yixin Lin & Dongmei Zhu & Siyuan Liu & Yuting Liu, 2023. "Influence of Utilitarian and Hedonic Attributes on Willingness to Pay Green Product Premiums and Neural Mechanisms in China: An ERP Study," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    6. Wenyi Wang & Qiang Guo, 2023. "Subscription strategy choices of network video platforms in the presence of social influence," Electronic Commerce Research, Springer, vol. 23(1), pages 577-604, March.
    7. Yajie Hu & Huiwen Zhou & Yuangao Chen & Jianrong Yao & Jiangwu Su, 2023. "The influence of patient-generated reviews and doctor-patient relationship on online consultations in China," Electronic Commerce Research, Springer, vol. 23(2), pages 1115-1141, June.

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