Optimal rebate strategy for an online retailer with a cashback platform: commission-driven or marketing-based?

Author(s):  
Lifeng Mu ◽  
Xin Tang ◽  
Vijayan Sugumaran ◽  
Wei Xu ◽  
Xiangyang Sun
Keyword(s):  
2021 ◽  
pp. 002224372110202
Author(s):  
Shrabastee Banerjee ◽  
Chris Dellarocas ◽  
Georgios Zervas

This article studies the question and answer (Q&A) technology of electronic commerce platforms, an increasingly common form of user-generated content that allows consumers to publicly ask product-specific questions and receive responses, either from the platform or from other customers. Using data from a major online retailer, the authors show that Q&As complement consumer reviews: unlike reviews, questions are primarily asked pre-purchase and focus on clarification of product attributes rather than discussion of quality; answers convey fit-specific information in a predominantly sentiment-free way. Based on these observations, the authors hypothesize that Q&As mitigate product fit uncertainty, leading to better matches between products and consumers, and therefore improved product ratings. Indeed, when products suffering from fit mismatch start receiving Q&As, their subsequent ratings improve by approximately 0.1 to 0.5 stars and the fraction of negative reviews that discuss fit-related issues declines. The extent of the rating increase due to Q&As is proportional to the probability that purchasers will experience fit mismatch without Q&A. These findings suggest that, by resolving product fit uncertainty in an e-commerce setting, the addition of Q&As can be a viable way for retailers to improve ratings of products that have incurred low ratings due to customer-product fit mismatch.


2021 ◽  
Vol 39 (2) ◽  
pp. 1-38
Author(s):  
Gediminas Adomavicius ◽  
Jesse Bockstedt ◽  
Shawn Curley ◽  
Jingjing Zhang

Prior research has shown a robust effect of personalized product recommendations on user preference judgments for items. Specifically, the display of system-predicted preference ratings as item recommendations has been shown in multiple studies to bias users’ preference ratings after item consumption in the direction of the predicted rating. Top-N lists represent another common approach for presenting item recommendations in recommender systems. Through three controlled laboratory experiments, we show that top-N lists do not induce a discernible bias in user preference judgments. This result is robust, holding for both lists of personalized item recommendations and lists of items that are top-rated based on averages of aggregate user ratings. Adding numerical ratings to the list items does generate a bias, consistent with earlier studies. Thus, in contexts where preference biases are of concern to an online retailer or platform, top-N lists, without numerical predicted ratings, would be a promising format for displaying item recommendations.


Author(s):  
Claudia Lemke ◽  
Walter Brenner ◽  
Kathrin Kirchner
Keyword(s):  

Author(s):  
James G.S. Yang

This paper examines internet commerce taxation. It concerns who is responsible for collecting sales tax - the seller or the buyer, which depends on nexus between the seller and the state. If there is a nexus, it is the seller’s responsibility; otherwise, it is the buyer’s duty. Nexus further depends on physical presence. However, in today’s e-business, the concept of physical presence has changed. Effective June 1, 2008, New York State enacted the so called “Amazon Tax Law” that an out-of-state online retailer is presumed to have nexus with New York State if it enters into a contract with an affiliate in the state to engage in soliciting businesses in the state by means of web site linkage for an annual gross receipts of more than $10,000. As such, the online retailer is required to collect sales tax from the in-state buyer. The concept of physical presence has been extended from employee or office to web site connection. This paper examines its impact.


Author(s):  
Changsu Kim ◽  
Weihong Zhao ◽  
Kyung Hoon Yang

Based on customer cognitive, affective and conative experiences in Internet online shopping, this study, from customers’ perspectives, develops a conceptual framework for e-CRM to explain the psychological process that customers maintain a long-term exchange relationship with specific online retailer. The conceptual framework proposes a series of causal linkages among the key variables affecting customer commitment to specific online retailer, such as perceived value (as cognitive belief), satisfaction (as affective experience) and trust (as conative relationship intention). Three key exogenous variables affecting Internet online shopping experiences, such as perceived service quality, perceived product quality, and perceived price fairness, are integrated into the framework. This study empirically tested and supported a large part of the proposed framework and the causal linkages within it. The empirical results highlight some managerial implications for successfully developing and implementing a strategy for e-CRM.


2011 ◽  
Vol 7 (4) ◽  
pp. 50-61
Author(s):  
James G.S. Yang

This paper examines internet commerce taxation. It concerns who is responsible for collecting sales tax - the seller or the buyer, which depends on nexus between the seller and the state. If there is a nexus, it is the seller’s responsibility; otherwise, it is the buyer’s duty. Nexus further depends on physical presence. However, in today’s e-business, the concept of physical presence has changed. Effective June 1, 2008, New York State enacted the so called “Amazon Tax Law” that an out-of-state online retailer is presumed to have nexus with New York State if it enters into a contract with an affiliate in the state to engage in soliciting businesses in the state by means of web site linkage for an annual gross receipts of more than $10,000. As such, the online retailer is required to collect sales tax from the in-state buyer. The concept of physical presence has been extended from employee or office to web site connection. This paper examines its impact.


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