In this paper, we estimate a differentiated products demand model to ask three questions regarding the introduction of e-commerce. First, we ask whether the online distribution channel has increased total sales, or only diverted sales from traditional channels. We find that there is some market...

This paper discusses the impacts of providing energy efficiency information to online shoppers. It lays out mechanisms by which this may improve appliance purchase and use decisions, raise awareness, improve innovation and align market forces with sustainability objectives. It finds that...

How does emotional expression in online reviews affect sales? To answer this question, a model is constructed based on theories of sentiment. This model is tested experimentally. Controlling for online review valence online review emotionality affects product sales. The impact is moderated by...

Objective – Changing environment in the business world is affecting business and the advent of the Internet has also had an enduring effect in the way companies do business. In ensuring the continued survival of a company it becomes imperative that a company develop a loyal customer base. The...

This study quantitatively investigated the effect of purchases and sales on selling apps on the value of new product purchases, based on questionnaire data from 20,000 consumers. To sufficiently address endogeneity, individual consumer preferences were incorporated into the model and a GMM...

Price promotions increase sales, at least in the short term, but the effect of price promotions on consumers' product evaluations is not well understood. We focus on the market for mobile apps, a category where price variation, including discounting to a zero price is common. We ask how price...

How much does a single negative customer review impact online search and purchase behavior? To answer this question, the authors compare choices made by consumers searching for a product that had a negative review posted on its product-page with those made when the same review had “moved” to...

The recent stagnation of electronic commerce highlights the need to understand contemporary online consumer behavior. This study incorporates current user demographics and emerging Internet activities to dynamically model the determinants of two key measurements of recent online shopping, a...

In the present study, we define product branding as the willingness of the average consumer to rely on the ability of the brand to perform its stated function (Chaudhuri and Holbrook, 2001). Both Doney and Cannon (1997) and Moorman et al. (1992) also stress that the notion of branding is only...

Consumer reviews may have perverse effects, including delays of adoption in new products of unknown quality when consumers are boundedly rational. When consumers fail to take into account that past reviewers self-select to purchases, a monopolist may manipulate the posterior beliefs of consumers...