Complicating or simplifying? Investigating the mixed impacts of online product information on consumers’ purchase decisions

• Published in: Internet research 2020-02, Vol.30 (1), p.263-287
• Main Authors: Yu, Yan, Liu, Ben Qianqian, Hao, Jin-Xing, Wang, Chuanqi
• Format: Article
• Language: English
• Subjects: Accuracy; Bias; Cognitive Ability; Cognitive load; Consumers; Decision making; Electronic commerce; Environment; Expected values; Factorial design; Information processing; Learning; Learning Theories; Learning theory; Literature Reviews; Merchandise Information; Peer Acceptance; Preferences; Product information; Rationality; Shopping; Socialization
• ISSN: 1066-2243; 2054-5657
• DOI: 10.1108/INTR-05-2018-0247

Purpose Prior literature indicates conflicting effects of online product information, which may complicate or simplify consumer purchase decisions. Therefore, the purpose of this paper is to investigate how different online product information (i.e. the choice set size and the popularity information and its presentation) affect consumers’ decision making and the related market outcomes. Design/methodology/approach This research relies on information-processing theories and social learning theory. By stepwise conducting two 2×2 within-subject factorial design experiments, this research examines the effects of the choice set size, product popularity information and product presentation on consumers’ decision making and the aggregated market outcomes. Findings The results show that product popularity information led consumers to either simplify or complicate their decision strategy, depending on the size of the choice sets. Additionally, presenting products by their popularity in descending order resulted in consumers making decisions with a larger decision bias. The results also show that the presence of product popularity was more likely to forge a “superstar” structure in a large market. Practical implications The research suggests that e-retailers and e-marketplace operators should carefully utilize product popularity information. Multiple mechanisms that shape different shopping environments with different orders are necessary to create a long-tailed market structure. Originality/value This study found the mixed effects of product popularity information when it is presented in different environments (i.e. the large/small choice set and the sorted/randomized product presentation). The overuse of popularity information may induce consumers’ decision bias.