Examining the impact of rich media on consumer willingness to pay in online stores

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Examining the impact of rich media on consumer willingness to pay in online stores

  1. 1. Examining the impact of rich media on consumer willingness to pay in online stores 指導⽼老師 蔡家⽂文 教授 學⽣生 鍾聖彥
  2. 2. 論⽂文簡介 • Journal:Electronic Commerce Research and Applications • Author:Ting Li , Zornitsa Meshkova
 Rotterdam School of Management, Erasmus University, The Netherlands • Article history: Received 8 March 2013
 Received in revised form 3 July 2013 Accepted 3 July 2013
 Available online 13 July 2013 • ! ! Keywords: Interactive media Online experiment Purchase intention Product videos Rich media
 Virtual product experience(VPE) Willingness to pay 2
  3. 3. Introduction Examples of innovative online shopping projects enabled by web development technologies. ! Virtual makeover solutions, where customers can try different hairstyles and accessories on top of their own photos (dailymakeover.com) • Product videos, 360-degree product views, and other interactive ways of looking at products (Apple.com,Canon-Europe.com, Philips.nl, and Sony.com) (Azo 2010, Fiore et al. 2005). • !
  4. 4. Introduction Product videos and interactive technologies such as virtual product experience (VPE) provide customers with the opportunity to create a more detailed mental picture of products before buying them. 虛擬產品體驗(virtual product experience):! 採⽤用三度空間模擬與多媒體等技術,提供消費者線上產品體驗服務。
  5. 5. Introduction Rich media can improve the online customer shopping experience. It is well known that product videos, and especially VPE capabilities are costly marketing tools. ! But will e-merchants benefit economically? ! !
  6. 6. Introduction • This research examines: Online Stores Rich Media Purchase intentions Willingness to pay This paper delves into the consumer responses directly related to purchase behavior – consumer purchase intentions and willingness to pay a price under different product presentations.
  7. 7. Introduction This research has three objectives: ! It will determine whether the use of rich media (VPE or product videos) in online product presentations influences consumer purchase behavior in terms of purchase intentions and willingness to pay. • ! • It will examine the extent to which the two rich media formats affect consumer informedness and excitement about the shopping experience and will determine whether these factors in turn influence consumer purchase behavior. ! • It will examine whether the effects of rich media on consumer responses differ depending on the product type being explored.
  8. 8. Theoretical background and hypothesis development . It was based on the availability of sufficient product information before purchase (Nelson 1974). Product search attributes easily can be evaluated before purchase based on the presented product information – for example, the color of clothes, the design of furniture, etc. Experience attributes are harder to judge before purchasing a product because they require a more direct consumer experience than the passive observation of the product.
  9. 9. Methodology
  10. 10. Measurement of constructs
  11. 11. Marginal consumer willingness to pay was measured using the double bound dichotomous choice (DBDC) format.
  12. 12. Data analysis
  13. 13. Result
  14. 14. Result
  15. 15. Conclusions Including a new dimension, important for online retailers’ profitability: marginal consumer willingness to pay. • The results supported the suggested hypothesis that VPE and product videos surpass static presentations in terms of the level of informedness and the feeling of excitement they leave in consumers. • The two rich media displays led to higher purchase intentions via the strong mediation effects of consumer informedness and excitement. • The interactive technology of VPE in particular had a significant direct positive influence on purchase intentions. • Willingness to pay values were explained partially by the significant effects of product type and purchase intentions. [Although not statistically significant, the mean values analysis of willingness to pay showed that the highest willingness to pay estimates were taken during the interactive examination of the experience product, suggesting that VPE might be more beneficial for retailers of experience products.] •

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