Auction or agent (or both)? A study of moderators of the herding bias in digital auctions

Informational Cascades, Herding Bias, and Food Taste Evaluations

“…This implies that the current study contributes to the existing body of knowledge in at least two important areas. First, while previous research has established an understanding of how herding bias affects choice (e.g., Dholakia et al, 2002), this study extends this knowledge by showing an influence on perceptions of sensory stimuli. According to Lee at al.…”

“…This is important, as it establishes an empirical base on which to suggest that consumers, in fact, can be "herded" simply by telling them that a herd exists. While previous research has normally focused on subjects watching the herd and reacting to what they see (e.g., Dholakia et al, 2002; FIGURE 1 Bikhchandani et al, 1998), this study talks about herds and monitors the reactions to what subjects are told. This extends the existing knowledge on herding and offers a supplement to the marketer's box of persuasive tools.…”

“…Previous research on consumer evaluation of food products supports this assumed importance of extrinsic cues (e.g., Aqueveque, 2008). While there are a number of different extrinsic cues any given consumer can consider in relation to new products, previous research has found that consumers often make decisions based on informational cues derived from the decision context, often resulting in contextual biases (Dholakia, Basuroy, & Soltysinski, 2002). The herding bias or herding behavior exemplifies one such contextual bias, and it describes the tendency to simply replicate the behavior of others (Dholakia et al, 2002).…”

“…While there are a number of different extrinsic cues any given consumer can consider in relation to new products, previous research has found that consumers often make decisions based on informational cues derived from the decision context, often resulting in contextual biases (Dholakia, Basuroy, & Soltysinski, 2002). The herding bias or herding behavior exemplifies one such contextual bias, and it describes the tendency to simply replicate the behavior of others (Dholakia et al, 2002). This phenomenon often results in decisions different from the ones that would have been reached if the consumer relied on information on product attributes alone (Bikhchandani, Hirshleifer, & Welch, 1992), and anecdotal evidence from business practice illustrate that marketing managers are well aware of this phenomenon.…”

Mining the web for business intelligence: Homepage analysis in the internet era

“…6 On the consumer behaviour side, Dholakia et al study the susceptibility of consumers to herding bias in digital auctions. 7 Shankar et al address the issue of customer satisfaction and loyalty in online and offline environments. 8 Recent advances in internet technology provide market researchers with a continuous flow of timely and accurate business intelligence.…”