IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v60y2021ics0969698920314107.html
   My bibliography  Save this article

A cross-country comparison of online deal popularity effect

Author

Listed:
  • Kao, Karen C.
  • Rao Hill, Sally
  • Troshani, Indrit

Abstract

The paper examines the effect of online deal popularity for service deals in a cross-country context. A 2 (deal popularity: low vs high) X 2 (culture: collectivist vs individualist) quasi experimental design was used to collect data in Australia and Taiwan to examine the consumer reactions toward deal popularity information of service deals on e-retailing websites. Results show consumers' perceived performance and psychological risk mediate the effect of deal popularity on purchase intention both in the Australian and Taiwanese samples. In addition, consumers' reactions towards online popularity information for online service deals do differ across cultures. While high deal popularity increases the Australian consumers' performance and psychological risk perceptions, which in turn lowers their purchase intention, high deal popularity decreases the Taiwanese consumers’ risk perception and enhances their purchase intention. This paper contributes to the broader fields of retailing and services studies by providing insights for online retailers concerning how deal popularity can be leveraged as a means to reduce perceptions of risk for Taiwanese consumers but with caveats for their Australian counterparts. As a first study that examines the effect of online deal popularity for service deals in a cross-country context, it extends the body of knowledge in a fast-changing domain of consumer behavior e-commerce settings.

Suggested Citation

  • Kao, Karen C. & Rao Hill, Sally & Troshani, Indrit, 2021. "A cross-country comparison of online deal popularity effect," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
  • Handle: RePEc:eee:joreco:v:60:y:2021:i:c:s0969698920314107
    DOI: 10.1016/j.jretconser.2020.102402
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698920314107
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2020.102402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yixing Lisa Gao & Anna S. Mattila, 2016. "The Impact of Option Popularity, Social Inclusion/Exclusion, and Self-affirmation on Consumers’ Propensity to Choose Green Hotels," Journal of Business Ethics, Springer, vol. 136(3), pages 575-585, July.
    2. Cindy Chan & Jonah Berger & Leaf Van Boven, 2012. "Identifiable but Not Identical: Combining Social Identity and Uniqueness Motives in Choice," Journal of Consumer Research, Oxford University Press, vol. 39(3), pages 561-573.
    3. Park, JungKun & Han, HyoJoo & Park, JooHyung, 2013. "Psychological antecedents and risk on attitudes toward e-customization," Journal of Business Research, Elsevier, vol. 66(12), pages 2552-2559.
    4. Aghekyan-Simonian, Mariné & Forsythe, Sandra & Suk Kwon, Wi & Chattaraman, Veena, 2012. "The role of product brand image and online store image on perceived risks and online purchase intentions for apparel," Journal of Retailing and Consumer Services, Elsevier, vol. 19(3), pages 325-331.
    5. Smith, Rachel & Deitz, George & Royne, Marla B. & Hansen, John D. & Grünhagen, Marko & Witte, Carl, 2013. "Cross-cultural examination of online shopping behavior: A comparison of Norway, Germany, and the United States," Journal of Business Research, Elsevier, vol. 66(3), pages 328-335.
    6. Bhatnagar, Amit & Ghose, Sanjoy, 2004. "Segmenting consumers based on the benefits and risks of Internet shopping," Journal of Business Research, Elsevier, vol. 57(12), pages 1352-1360, December.
    7. Davis, Lenita & Wang, Sijun & Lindridge, Andrew, 2008. "Culture influences on emotional responses to on-line store atmospheric cues," Journal of Business Research, Elsevier, vol. 61(8), pages 806-812, August.
    8. Peter, J Paul & Tarpey, Lawrence X, Sr, 1975. "A Comparative Analysis of Three Consumer Decision Strategies," Journal of Consumer Research, Oxford University Press, vol. 2(1), pages 29-37, June.
    9. Upender Subramanian & Ram C. Rao, 2016. "Leveraging Experienced Consumers to Attract New Consumers: An Equilibrium Analysis of Displaying Deal Sales by Daily Deal Websites," Management Science, INFORMS, vol. 62(12), pages 3555-3575, December.
    10. Brush, Gregory J., 2019. "Similarities and differences in Asian and Western travelers’ service performance measurement, evaluation and outcomes," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 351-361.
    11. Mauricio S. Featherman & Nick Hajli, 2016. "Self-Service Technologies and e-Services Risks in Social Commerce Era," Journal of Business Ethics, Springer, vol. 139(2), pages 251-269, December.
    12. Wang, Jeff Jianfeng & Zhao, Xin & Li, Julie Juan, 2013. "Group Buying: A Strategic Form of Consumer Collective," Journal of Retailing, Elsevier, vol. 89(3), pages 338-351.
    13. De Silva Kanakaratne, Maheshan & Bray, Jeffery & Robson, Julie, 2020. "The influence of national culture and industry structure on grocery retail customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    14. Mortimer, Gary & Fazal-e-Hasan, Syed Muhammad & Grimmer, Martin & Grimmer, Louise, 2020. "Explaining the impact of consumer religiosity, perceived risk and moral potency on purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    15. Bashir, Shahid & Khwaja, Muddasar Ghani & Mahmood, Asif & Turi, Jamshid Ali & Latif, Khawaja Fawad, 2021. "Refining e-shoppers’ perceived risks: Development and validation of new measurement scale," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    16. Wu, Laurie & Lee, Christopher, 2016. "Limited Edition for Me and Best Seller for You: The Impact of Scarcity versus Popularity Cues on Self versus Other-Purchase Behavior," Journal of Retailing, Elsevier, vol. 92(4), pages 486-499.
    17. Forsythe, Sandra M. & Shi, Bo, 2003. "Consumer patronage and risk perceptions in Internet shopping," Journal of Business Research, Elsevier, vol. 56(11), pages 867-875, November.
    18. Mazaheri, Ebrahim & Richard, Marie Odile & Laroche, Michel & Ueltschy, Linda C., 2014. "The influence of culture, emotions, intangibility, and atmospheric cues on online behavior," Journal of Business Research, Elsevier, vol. 67(3), pages 253-259.
    19. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
    20. Sandra Awanis & Bodo B Schlegelmilch & Charles Chi Cui, 2017. "Asia’s materialists: Reconciling collectivism and materialism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(8), pages 964-991, October.
    21. Elke U. Weber & Christopher Hsee, 1998. "Cross-Cultural Differences in Risk Perception, but Cross-Cultural Similarities in Attitudes Towards Perceived Risk," Management Science, INFORMS, vol. 44(9), pages 1205-1217, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alrawad, Mahmaod & Lutfi, Abdalwali & Alyatama, Sundus & Al Khattab, Adel & Alsoboa, Sliman S. & Almaiah, Mohammed Amin & Ramadan, Mujtaba Hashim & Arafa, Hussin Mostafa & Ahmed, Nazar Ali & Alsyouf, , 2023. "Assessing customers perception of online shopping risks: A structural equation modeling–based multigroup analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    2. Sanjeev Prashar & T. Sai Vijay & Chandan Parsad, 2017. "Effects of Online Shopping Values and Website Cues on Purchase Behaviour: A Study Using S–O–R Framework," Vikalpa: The Journal for Decision Makers, , vol. 42(1), pages 1-18, March.
    3. Abbas N. Albarq, 2021. "Effect of Web atmospherics and satisfaction on purchase behavior: stimulus–organism–response model," Future Business Journal, Springer, vol. 7(1), pages 1-8, December.
    4. Chang, En-Chi & Tseng, Ya-Fen, 2013. "Research note: E-store image, perceived value and perceived risk," Journal of Business Research, Elsevier, vol. 66(7), pages 864-870.
    5. Harris, Mark A. & Brookshire, Robert & Chin, Amita Goyal, 2016. "Identifying factors influencing consumers’ intent to install mobile applications," International Journal of Information Management, Elsevier, vol. 36(3), pages 441-450.
    6. Gianfranco Walsh & Edward Shiu & Louise Hassan & Patrick Hille & Ikuo Takahashi, 2019. "Fear of Online Consumer Identity Theft: Cross-Country Application and Short Scale Development," Information Systems Frontiers, Springer, vol. 21(6), pages 1251-1264, December.
    7. Makri, Katerina & Schlegelmilch, Bodo B., 2017. "Time orientation and engagement with social networking sites: A cross-cultural study in Austria, China and Uruguay," Journal of Business Research, Elsevier, vol. 80(C), pages 155-163.
    8. repec:dgr:rugsom:04f04 is not listed on IDEAS
    9. Anam Bhatti & Shahrin Saad & Salimon Maruf Gbadebo, 2019. "Effect of Financial Risk, Privacy Risk and Product Risk on Online Shopping Behavior," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 7(4), pages :343-356, December.
    10. Patricea Elena BERTEA, 2015. "From Fearful To Trustful – How Perceived Risk Dimensions In E-Commerce Differentiate Between Consumers," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 45-54, June.
    11. Ya-Hui Wang & Cing-Fen Tsai, 2014. "The Relationship Between Brand Image and Purchase Intention: Evidence from Award Winning Mutual Funds," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(2), pages 27-40.
    12. Silvina Santana & Sandra Loureiro, 2010. "Assessing Benefits And Risks Of Online Shopping In Spain And Scotland," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 161-172.
    13. Clauzel, Amélie & Guichard, Nathalie & Riché, Caroline, 2019. "Dining alone or together? The effect of group size on the service customer experience," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 222-228.
    14. Sara Jonsson & Inga-Lill Söderberg, 2018. "Investigating explanatory theories on laypeople’s risk perception of personal economic collapse in a bank crisis – the Cyprus case," Journal of Risk Research, Taylor & Francis Journals, vol. 21(6), pages 763-779, June.
    15. Cao, XinYu & Mokhtarian, Patricia L, 2005. "The Intended and Actual Adoption of Online Purchasing: A Brief Review of Recent Literature," Institute of Transportation Studies, Working Paper Series qt095934s0, Institute of Transportation Studies, UC Davis.
    16. Yu-Shan Chen & Stanley Y.B. Huang, 2017. "The effect of task-technology fit on purchase intention: The moderating role of perceived risks," Journal of Risk Research, Taylor & Francis Journals, vol. 20(11), pages 1418-1438, November.
    17. Basu, Rituparna & Paul, Justin & Singh, Kandarp, 2022. "Visual merchandising and store atmospherics: An integrated review and future research directions," Journal of Business Research, Elsevier, vol. 151(C), pages 397-408.
    18. Rotem-Mindali, Orit, 2010. "E-tail versus retail: The effects on shopping related travel empirical evidence from Israel," Transport Policy, Elsevier, vol. 17(5), pages 312-322, September.
    19. Obal, Michael & Kunz, Werner, 2016. "Cross-cultural differences in uses of online experts," Journal of Business Research, Elsevier, vol. 69(3), pages 1148-1156.
    20. Nahid Malazizi & Habib Alipour & Hossein Olya, 2018. "Risk Perceptions of Airbnb Hosts: Evidence from a Mediterranean Island," Sustainability, MDPI, vol. 10(5), pages 1-23, April.
    21. Sara Poggesi & Michela Mari & Arash Kamangar & Pinalba Schilleci, 2022. "The Role of Virtual Environment in Online Retailing: State of the Art and Research Challenges," Sustainability, MDPI, vol. 14(7), pages 1-17, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:60:y:2021:i:c:s0969698920314107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.