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Many researchers have demonstrated the existence of an attraction effect that increases the choice probability of an existing “target” brand by the introduction of a relatively inferior “decoy” brand. This study develops a causal model that links antecedent variables with the attraction effect. We find that the attraction effect is explained to a considerable extent by changes in the following seven variables: (1) information relevance or stimulus meaningfulness, (2) product class knowledge, (3) task involvement, (4) perceived similarity between decoy and target, (5) relative brand preference, (6) share captured by decoy brand, and (7) perceived decoy popularity. The overall results were consistent across product classes studied, which included beer, cars, and TV sets. The popularity explanation for attraction effect, alluded to by Huber, Payne, and Puto (1982), was tested and found to hold true.

The projected sales potential for Internet commerce indicates that businesses must understand those consumer characteristics that will influence consumer adoption of this medium for shopping. An empirical study conducted here (n = 403) investigates the extent to which open‐processing (more general innovativeness) and domain‐specific innovativeness explain the conditions under which consumers move from general Internet usage to a product purchase via the Internet. The results of our study find that generally higher amounts of Internet use (for non‐shopping activities) are associated with an increased amount of Internet product purchases. Importantly, however, this relationship is moderated by domain‐specific but not general innovativeness. Implications for business practice and academic research are provided.

Of the many approaches to building a brand’s image on the Internet, a Web site is one of the most important tools for managers. An important decision made by Web site managers is whether to place banner advertisements on their brand’s Web site (e.g. The New Yorker Web site placing an ad for polo.com). While banner advertisements are widespread in the marketplace, it is unclear whether Web sites containing such advertisements may be harming themselves by such a practice. This study addresses this issue by investigating the impact of banner advertisement and Web site congruity on consumer attitudes toward a brand’s Web site. The results of an experiment indicate that if managers include such advertisements on their Web site, these advertisements should be consistent with the Web site brand and that certain consumer characteristics should be considered. Implications of the research for brand management and advertising on the Internet are provided.

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