How consumers form product quality perceptions in absence of fixed posted prices: Interaction of product cues with seller reputation and third-party reviews

Narwal, Preeti; Nayak, Jogendra Kumar

doi:10.1016/j.jretconser.2019.101924

Cited by 21 publications

(27 citation statements)

References 54 publications

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“…According to (Tjiptono, 2007), the price of a product is a monetary unit or another measure including other goods and services exchanged in order to obtain ownership rights or users of an item and service. Companies need to continue to improve the quality of products or services and provide variations in product prices because increasing product quality and product price variations can make consumers feel satisfied with the products or services they buy and will influence consumers to make repeat purchases (Dinopoulos, Kalyvitis, & Katsimi, 2020;Ferrara, Missios, & Yildiz, 2019;Narwal & Nayak, 2020).…”

Section: Introductionmentioning

confidence: 99%

The Influence of Product Quality and Price on Purchasing Decisions at Mitraindo South Tangerang Online Shop

Akbar

2020

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This study aims to determine the effect of product quality and price on purchasing decisions at Mitraindo South Tangerang Online Shop. The method used is explanatory research with analytical techniques using statistical analysis with regression testing, correlation, determination, and hypothesis testing. The results of this study product quality significantly influence purchasing decisions by 40.3, the hypothesis test obtained tcount> ttable or (7.974> 1.986). Price significantly influences the purchase decision of 38.0%, the hypothesis test is obtained tcount> ttable or (7.594> 1.986). Product quality and price simultaneously have a significant effect on purchasing decisions of 49.0%, the hypothesis test is obtained Fcount> Ftable or (44,626> 2,700)

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Section: Introductionmentioning

confidence: 99%

The Influence of Product Quality and Price on Purchasing Decisions at Mitraindo South Tangerang Online Shop

Akbar

2020

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“…Research on search and experience goods has received considerable attention from the academic community. The relationship between online signals, offline signals as eWOM, and seller reputation has a significant effect on consumers' choice [119,120] and has been studied by researchers. A major limitation of this literature is that numerous signals are used to investigate the customer purchase decision-making from a search and experience goods perspective.…”

Section: Discussionmentioning

confidence: 99%

Examining Different Factors in Web-Based Patients’ Decision-Making Process: Systematic Review on Digital Platforms for Clinical Decision Support System

Shah

Muhammad

Lee

2021

IJERPH

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(1) Background: The appearance of physician rating websites (PRWs) has raised researchers’ interest in the online healthcare field, particularly how users consume information available on PRWs in terms of online physician reviews and providers’ information in their decision-making process. The aim of this study is to consistently review the early scientific literature related to digital healthcare platforms, summarize key findings and study features, identify literature deficiencies, and suggest digital solutions for future research. (2) Methods: A systematic literature review using key databases was conducted to search published articles between 2010 and 2020 and identified 52 papers that focused on PRWs, different signals in the form of PRWs’ features, the findings of these studies, and peer-reviewed articles. The research features and main findings are reported in tables and figures. (3) Results: The review of 52 papers identified 22 articles for online reputation, 15 for service popularity, 16 for linguistic features, 15 for doctor–patient concordance, 7 for offline reputation, and 11 for trustworthiness signals. Out of 52 studies, 75% used quantitative techniques, 12% employed qualitative techniques, and 13% were mixed-methods investigations. The majority of studies retrieved larger datasets using machine learning techniques (44/52). These studies were mostly conducted in China (38), the United States (9), and Europe (3). The majority of signals were positively related to the clinical outcomes. Few studies used conventional surveys of patient treatment experience (5, 9.61%), and few used panel data (9, 17%). These studies found a high degree of correlation between these signals with clinical outcomes. (4) Conclusions: PRWs contain valuable signals that provide insights into the service quality and patient treatment choice, yet it has not been extensively used for evaluating the quality of care. This study offers implications for researchers to consider digital solutions such as advanced machine learning and data mining techniques to test hypotheses regarding a variety of signals on PRWs for clinical decision-making.

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“…Past work suggests that information asymmetry in preowned durable goods markets increases consumers' reliance on observable signals to help them infer the quality of complex products (Akerlof, 1978;Wiggins and Lane, 1983). Consumers who are uncertain of a pre-owned product's condition may rely on the seller's reputation (Brucks et al, 2000;Narwal and Nayak, 2020;Rao et al, 1999;Wells et al, 2011), guarantees such as warranties (Bergen et al, 1992;Purohit and Srivastava, 2001;Wiener, 1985) or product attributes (Brucks et al, 2000;Dawar and Parker, 1994;Narwal and Nayak, 2020) when making a decision.…”

Section: Theory and Hypothesismentioning

confidence: 99%

“…The first category is where sellers make up-front expenditures in ways that communicate their quality. This includes spending on advertising, branding and other forms of marketing communication that build the seller's reputation or customer loyalty (Brucks et al, 2000;Narwal and Nayak, 2020;Rao et al, 1999;Wells et al, 2011). With these signals, consumers should rationally infer that only high-quality sellers can afford to take the financial risk of making such expenditures (Akdeniz et al, 2013;Hertzendorf, 1993;Purohit and Srivastava, 2001).…”

Section: Role Of Observable Signals Of Perceived Qualitymentioning

confidence: 99%

Pursuing premium: comparing pre-owned versus new durable markets

Miller

Brannon

2021

JPBM

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Purpose The purpose of this paper is to investigate whether consumers in pre-owned durable goods markets (such as pre-owned automobiles) purchase products with higher premium/luxury positioning in a vertical line-up compared to consumers in new durable goods markets. The moderating role of brand loyalty on choice is also investigated. Design/methodology/approach The hypotheses are tested using a data set that includes the sales of new and pre-owned vehicles from an independently owned automotive dealer in the Northwestern USA during the first nine months of 2017 (N = 200). An ordered logit regression is used to estimate the relationship between consumers’ purchase of pre-owned vs new vehicles and the premium-level of the model that they choose, while controlling for the vehicle price. Two experimental robustness tests are conducted to provide empirical evidence of the proposed theoretical process. Findings Consumers who purchased pre-owned vehicles chose models with higher premium/luxury positioning compared to consumers who purchased new vehicles, even when controlling for price. This effect was moderated by brand loyalty, such that consumers’ premium-level of purchase was magnified if they previously owned a vehicle of the same brand. The results of an experimental robustness test indicated that consumers’ preference for pre-owned vehicles with higher premium/luxury positioning was because of greater perceptions of the quality along the dimensions of versatility, performance and prestige. Practical implications Sellers of complex durable goods (e.g. automobiles) should consider segmenting their upselling strategies for pre-owned vs new products. They should specifically focus more effort on the upselling of pre-owned durables as buyers appear more likely to pursue premium/luxury alternatives compared to new durables. Further, they should focus upselling efforts for pre-owned durables on brand loyal consumers. Originality/value To the best of the authors’ knowledge, this work is the first to examine consumers’ desire for pre-owned durable goods with premium/luxury positioning in a vertical product line-up. Further, it is also the first to explore the role of brand loyalty in shaping consumer preferences for premium/luxury pre-owned durable goods. As such, it makes an important contribution to an emerging literature exploring the appeal of premium and luxury pre-owned goods. Much work in this area has focused on the motivations that consumers have for buying pre-owned premium and luxury nondurable goods, such as vintage clothing or accessories. By contrast, the present research investigates the appeal of premium/luxury positioning for complex, pre-owned durable goods (vehicles), which are more difficult for consumers to evaluate at the point-of-purchase.

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How consumers form product quality perceptions in absence of fixed posted prices: Interaction of product cues with seller reputation and third-party reviews

Cited by 21 publications

References 54 publications

The Influence of Product Quality and Price on Purchasing Decisions at Mitraindo South Tangerang Online Shop

The Influence of Product Quality and Price on Purchasing Decisions at Mitraindo South Tangerang Online Shop

Examining Different Factors in Web-Based Patients’ Decision-Making Process: Systematic Review on Digital Platforms for Clinical Decision Support System

Pursuing premium: comparing pre-owned versus new durable markets

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