Decision making is a fundamental building block of people’s lives. Each decision requires expenditure of cognitive effort, though to a varying degree, which is considered a valuable yet limited resource in the decision making literature. Though the importance of a cognitive effort minimization goal is well-established in the marketing literature, this paper examined how cognitive effort exertio...

A rich theory literature predicts mixed strategies in posted prices due to standard price discrimination, search frictions, and various other rationales. While typically interpreted as implying occasional sales or price dispersion, online marketplaces enable a firm to truly use randomization as a tool in pricing, and so such behavior should be expected to arise in online settings. We investigat...

This study was partly conducted within the context of the ACTIVE project (EP 27046), ESPRIT Programme (Framework IV), Commission of the European Union. Abstract Internet presents a new business environment with great potential for marketers. Virtual retailing / e-stores, in particular, own the unique property of combining advertising practices and on-line sales functionality. In that context, t...

The authors examine racial and ethnic differences in computer ownership and Internet usage using data from a survey conducted by the Nomura Research Institute in 2000. They focus on on-line shopping because few studies have examined racial and ethnic differences in e-commerce. The results indicate that blacks and Hispanics are less likely to own or use a computer than are non-Hispanic whites bu...

The artefact or object-based models commonly used in interaction design for describing users are inadequate for understanding the complexity and variability of online consumer behaviour, while traditional models of consumer behaviour do not reflect the user's ability to shape their shopping experience online. To address this gap a framework has been developed for modelling online consumer behav...

This paper describes a consumer behavior model for online shopping, especially online music services, because they are the most popular online shopping service in Japan. Based on Howard's consumer decision model, questionnaires about decision making for online music services were given to 282 students. The questionnaire results show that almost 90% of respondents have downloaded from online mus...

Online product reviews is an important advantage for consumers of experience goods in online marketplaces and act as a useful source of information during the purchase of a good. Furthermore in some online marketplaces consumers have the opportunity to evaluate how helpful a review was by using a binary evaluation interface provided by the online marketplace. This results to the usefulness scor...

If a “perfect market” in economic theory ever comes true in the digital world, sellers will not be able to gain profits above the marginal costs, and the resource allocation will become much more efficient. This paper attempts to investigate whether this prediction is true in the electronic marketplace. We have observed 2,000 prices listed by online and offline retailers. By comparing price lev...

e examine the ability of customer ratings of pre-purchase and post-purchase service to explain price variations in the online book market. In addition , we test whether market leaders leverage their branding advantage by charging higher prices. E-tailer prices were modeled using a market basket of identical books whose posted prices were sampled repeatedly over a 4-month period. Contrary to exp...

Online shopping is becoming a well-accepted way to purchase a variety of products and services. For online shoppers, an online interactive hypertext environment enables them to search and control information; alteration in the traditional mass media environment in which the sender of messages largely controls what will be seen and heard as well as shift of control in favor of the receiver for c...