When Electronic Recommendation Agents Backfire: Negative Effects on Choice Satisfaction, Attitudes, and Purchase Intentions

2010 ◽  
Author(s):  
Joseph Lajos ◽  
Amitava Chattopadhyay ◽  
Kishore Sengupta
2020 ◽  
Vol 61 (3) ◽  
pp. 312-331 ◽  
Author(s):  
Eric D. Olson ◽  
Heejung Ro

This research investigates how potential customers evaluate a company response to negative online reviews. Integrating the literature on perceived justice in service recovery, social presence in online communications, and signaling in trust formation process, this research examines the effects of procedural justice, interactional justice, and social presence in the company’s response to negative online reviews on potential customers’ trust and purchase intentions toward a company. A 2 × 2 × 2 between-subject experimental design is utilized, and 410 participants are recruited through a consumer panels firm. Main results include the three-way interaction effect of procedural justice, interactional justice, and social presence on trust and the mediating effect of trust. Social presence exacerbates the negative effects on trust when both interactional justice and procedural justice are low in the company response. However, the social presence effect becomes small in increasing trust when both interactional justice and procedural justice are high in the company response. Trust mediates the relationship between customer perceptions of company response and purchase intentions. This research provides practical implications for hospitality companies on how to effectively respond to negative online reviews.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haejoo Han ◽  
Jisu Yi ◽  
Sunghee Jun ◽  
Sungsook Ahn

PurposeIn the context of influencer marketing, this study examines the effects of explicit advertising disclosure on consumers' inference regarding influencers' sincere recommendation intent, and its consequences for consumers' purchase intentions.Design/methodology/approachIn Study 1, participants were randomly assigned to the conditions of explicit advertising disclosure (e.g. #AD, #Sponsored) and subtle advertising disclosure (e.g. #ThankYou), and indicated their inference regarding influencers' recommendation motives and their own purchase intentions. One-way ANOVA analysis reveals the effect of advertising disclosure on consumers' purchase intentions and the PROCESS model indicates the mediating role of consumers' inferences regarding influencers' sincere recommendation intent. In Study 2, we implemented a 2 (explicit vs. subtle advertising disclosure) × 2 (moderate vs. large size of followers) between-subjects design, using a two-way ANOVA analysis. We analyzed the moderated mediation effect via the PROCESS model.FindingsConsumers are less inclined to purchase products when influencers express explicit advertising disclosures, compared to when the advertising disclosures are subtle (Study 1). These negative effects of advertising disclosure can be caused by consumers' inferences regarding influencers' sincere recommendation intent in terms of posting content (Studies 1 and 2). Additionally, the negative effect is particularly prominent when an influencer has a large (vs. moderate) number of followers (Study 2).Originality/valueBy examining (1) the effects of explicit advertising disclosure on consumers' inference regarding influencers' persuasion motives and (2) the role of the influencer's number of followers, this research provides both theoretical and practical insights for understanding how best to implement influencer marketing.


2016 ◽  
Vol 50 (3/4) ◽  
pp. 421-441 ◽  
Author(s):  
Maria Sääksjärvi ◽  
Katarina Hellén ◽  
George Balabanis

Purpose The purpose of this paper is to examine women’s reactions to celebrity endorsers holding positive and negative public images and the consequences for purchase intentions of the endorsed product. Design/methodology/approach The paper draws on the social comparison literature and applies the theory of upward and downward comparisons to the celebrity endorsement context. Findings Study 1 shows that exposure to celebrities holding a positive public image decrease consumers’ temporal self-esteem, while celebrities holding a negative public image increase temporal self-esteem. Study 2 suggests that this change in self-esteem transfers to the product depending upon the type of social comparison focus (similarity vs dissimilarity) which people have. Study 3 shows that for consumers low in true self-esteem, i.e. self-esteem based upon a stable foundation, celebrities holding a positive public image decrease purchase intentions. For consumers high in true self-esteem, there was no difference between exposure to celebrities holding a positive and a negative public image for purchase intentions. Study 4 focused on replicating the results found in Studies 1-3 in the context of an achievement celebrity (as opposed to a regular celebrity). The findings in Study 4 provide further support for the results of Studies 1 and 3, and identify expert celebrities as a boundary condition for the effects found in Study 2. Practical implications The results provide evidence suggesting that celebrities holding a negative public image can be used as celebrity endorsers in product categories in which it can be considered helpful to protect women’s self-esteem, such as beauty products or self-expressive products. Originality/value This research contributes to the literature on celebrity endorsement by adding a boundary condition for the effectiveness of celebrity endorsement. According to the results, choosing a positive celebrity can, for some groups, have negative effects on purchase intensions and that a negative celebrity might be the safer choice.


2018 ◽  
Vol 28 (4) ◽  
pp. 1142-1164 ◽  
Author(s):  
Ruoyun Lin

Purpose The purpose of this paper is to explore the prevalence of benign and malicious envy on social media, and to examine the relationships between shared content (experiential vs material purchases), envy type (benign vs malicious), and purchase intention (toward the same vs a superior object). Design/methodology/approach Three studies (N=622) were conducted to ask participants to recall the last time they experienced envy due to browsing social media, report an envy-triggering post about either an experiential or a material purchase shared by others and read a post about a friend’s newly bought MacBook in either an experiential or a material phrasing. The degrees of benign and malicious envy were measured, as well as the future purchase intentions toward the same and a superior object. Findings The results showed that most of the envious emotions were actually benign envy. Although there was no main effect of purchase type on envy type, both experiential purchases and phrasings were less likely to be perceived as showing off, and therefore triggered less malicious envy. Furthermore, benign envy was positively associated with the purchase intention of the same envied purchase, and malicious envy was positively associated with the purchase intention of something even superior. Originality/value As browsing other’s social news sometimes evokes envy, people were concerned about the negative effects of envy on consumers. However, this paper addressed the positive effects of envy which comes along with a motivation of moving up. This positive motivation can also be utilized for social media advertising.


2019 ◽  
Vol 45 (4) ◽  
pp. 645-661
Author(s):  
Tom Joonhwan Kim ◽  
Youjae Yi ◽  
Jongan Choi

This research examines how personality congruency between brands and consumers affect consumers’ attribution and brand evaluation in a product-harm crisis. Results show that the negative influence of a product-harm crisis on brand evaluation is stronger for consumers with high personality congruency than for consumers with low personality congruency. Consumers with high personality congruency feel more disappointment, which leads to attribution toward internal factors of the company, blame toward the brand, and consequently lower purchase intentions. This research suggests that brand personality congruency, although generally assumed to have positive effects on brand evaluation, can have negative effects in a product-harm crisis. JEL Classification: M31


2015 ◽  
Vol 32 (4) ◽  
pp. 225-233 ◽  
Author(s):  
Marine Kergoat ◽  
Thierry Meyer

Purpose – This study aims to examine the influence of a visual alteration in print advertising on viewers’ responses according to the different textual and pictorial information contained in the ad. Design/methodology/approach – Through an experimental design, the presence or not of a human face and the kind of verbal claims (self-centered vs product-centered) were manipulated, as well as visual fluency manipulated by varying the clarity of the ads. Findings – As expected, the presence of a human face, as opposed to just a product picture, has led to stronger negative effects on attitudes and purchase intention when the ad was visually altered. In addition, ad’s claim directed toward the self yielded lower purchase intentions compared to arguments directed toward product characteristics. Findings supported our main expectations, but also demonstrated contrasted effect, plausibly due to a bias correction. Research limitations/implications – To comfort these findings, further research should be realized on other advertising varying the kind of human face stimuli (e.g. woman/man; smiling/neutral; beautiful/average). Practical implications – In terms of practical implications, it highlights the significance of considering the medium of communication used for print ads with caution. The pictorial use of a human face can be particularly harmful in the persuasive process if there is a risk that the ad could be visually altered. Originality/value – Currently, little is known about how sub-optimal visual exposition changes attitudes and behaviors depending on the content of an ad. The present study expands research on processing fluency effects and the use of models in advertisements.


2019 ◽  
Vol 56 (2) ◽  
pp. 197-210 ◽  
Author(s):  
Lauren Grewal ◽  
Andrew T. Stephen ◽  
Nicole Verrochi Coleman

Consumers frequently express themselves by posting about products on social media. Because consumers can use physical products to signal their identities, posting about products on social media may be a way for consumers to virtually signal identity. The authors propose that there are conditions in which this action can paradoxically reduce a consumer’s subsequent purchase intentions. Five experiments demonstrate that posting products on social media that are framed as being identity-relevant can reduce a consumer’s subsequent purchase intentions for the same and similar products, as this action allows consumers to virtually signal their identity, fulfilling identity-signaling needs. Fortunately for retailers, the authors suggest theoretically and managerially relevant moderators that attenuate this negative effect on intent to purchase. These findings have important implications for how firms can conduct social media marketing to minimize negative purchase outcomes.


2021 ◽  
Vol 13 (9) ◽  
pp. 4864
Author(s):  
Jungwoo Lee ◽  
Cheong Kim ◽  
Kun Chang Lee

Emojis are prevalent in modern social media advertising. Despite this fact, little research can be found on its effects on consumer purchase intentions. This study seeks to examine purchase intentions in the context of Sponsored Ads on Facebook News Feeds, their perceived intrusiveness, and how the added factor of emoji presence can further affect consumer perception in order to suggest a pathway for establishing sustainable marketing strategies. We investigated the effect of emojis on consumers and then the extent to which ad personalization can attenuate intrusiveness to the point of influencing purchase intentions. In the empirical investigations (an online study) conducted, the study revealed several interesting findings. First, the emoji presence in Sponsored Ads on the News Feed did not prompt the users’ perceived intrusiveness. Second, the emoji use led to decreased purchase intentions. Third, the perceived intrusiveness did not mediate the relationship between emoji presence (vs. absence) and purchase intentions. Lastly, the emoji presence decreased perceived intrusiveness and also increased purchase intentions when consumers perceived ads to be less personalized. The findings of this research provide both theoretical and managerial implications of the effects of emojis, and the reasons as to why their usage affects the desired ad goals when used in Sponsored Ads on Facebook from the perspective of sustainable marketing.


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