Mixing Consumers' Rationality and Sociality : Effects of Product Quantity and Popularity Information on Online Shopping

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review

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Author(s)

Related Research Unit(s)

Detail(s)

Original languageEnglish
Title of host publicationProceeding of the 20th Pacific Asia Conference on Information Systems (PACIS 2016)
PublisherCollege of Management, National Chung Cheng University
ISBN (Electronic)9789860491029
Publication statusPublished - Jun 2016

Conference

Title20th Pacific Asia Conference on Information Systems (PACIS 2016)
LocationNice Prince Hotel
PlaceTaiwan
CityChiayi
Period27 June - 1 July 2016

Abstract

Classical economical theories assume whatever information is available about products will be fully and efficiently processed by consumers, thus the increase of information amount would lead to greater diversity of decisions. However, consumers' information processing capacity is limited. A large amount of product alternatives that requests consumers' intensive cognitive effort will activate their social learning by switching decision strategy and relying on the information of product popularity. Thus, this experimental study attempts to discover the mixture of consumers' rationality and sociality in online shopping. A 22 factorial design was conducted to tease out the effects of choice set and product popularity on individuals' cognitive efforts and preference reversal, as well as the effects on the market structures that are aggregated from individual decisions. The experimental results demonstrate that, despite a large amount of product alternatives, participants may not always invest abundant cognitive efforts and the market is more concentrated with the presence of product popularity. Theoretical and practical implications are discussed.

Research Area(s)

  • Cognitive effort, Market structure, Preference reversal, Social learning

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

Mixing Consumers' Rationality and Sociality : Effects of Product Quantity and Popularity Information on Online Shopping. / Yu, Yan; Wang, Chuanqi; Luo, Keyi; Liu, Ben.

Proceeding of the 20th Pacific Asia Conference on Information Systems (PACIS 2016). College of Management, National Chung Cheng University, 2016.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review