THE INFLUENCE OF THE NUMBER OF OPINIONS ON THE
ATTRACTIVENESS OF RETAILERS OFFER IN ONLINE
SHOPPING
Tomasz Wanat
The Poznan University of Economics
Niepodleglosci St. 10, 61-875 Poznan, Poland
Aleksandra Grzesiuk
The West Pomeranian Business School
Zolnierska St. 53, 71-210 Szczecin, Poland
Keywords: Online shopping, Perceived risk, Retailer reputation, e-Store choice.
Abstract: The research investigates consumers’ online shopping behaviour. The Authors suggest that due to high
perceived risk of online shopping consumers are prompted to use cues of shoppers’ reputation. One of such
cues can be a number of opinions expressed by the previous customers. In the series of two experiments a
number of other consumers’ opinions has been manipulated to influence choice of product supplier. The
results suggest that other consumers’ opinions could be used as a shoppers’ quality cue. The subjects didn’t
choose the cheapest version of product but they made a trade-off between price and number of opinions.
1 PERCEIVED RISK
Risk is perceived to be a factor in most purchase
decisions. In buying process, risk emerges from any
of the following factors: 1/ uncertainty as to buying
goals, 2/ which of several purchases (product, brand,
model, etc.) best matches the buying goals, 3/
possible adverse consequences if the purchase is
made (or not made) (Cox, 1967). The concept of
perceived risk often used by researchers defines risk
in terms of the consumer’s perception of the
uncertainty and adverse consequences of buying a
product (or service) (Dowling and Staelin, 1994).
In generally, perceived risk is defined as
comprising the following components: financial,
psychological, performance, time, social and time-
related risk (Stone and Gronhaug, 1993). Consumers
are credited with the capacity to receive and handle
considerable quantities of information and undertake
extensive pre-purchase searches and evaluation.
Financial risk is the perception that a certain
amount of money may be lost or required to make a
product work properly. Performance risk is the
perception that a product purchased may fail to
function as originally expected. Time risk is the
perception that time, convenience, or effort may be
wasted when a product purchased is repaired or
replaced. Psychological risk is the perception that a
negative effect on a consumer’s peace of mind may
be caused by a defective product. And finally, social
risk is refers to the perception that a product
purchased may result in disapproval by family or
friends.
However the majority of research on perceived
risk has been focused on the choice of product. The
product class has been found to contribute to the risk
inherent in the purchase decision (Dowling and
Staelin, 1994). Therefore two product groups could
be distinguished: class risk (the riskiness of buying
an average product) and specific product risk
(determined by the particular product under
consideration and other factors such as the purchase
situation). There are also some empirical studies
explicitly addressing perceived risk and the selection
of retailers. Dash, Schiffman and Berenson observe
differences in the level of perceived risk between
specialty store and department store shoppers (Dash,
Schiffman and Berenson, 1976), while Mattson
202
Wanat T. and Grzesiuk A. (2009).
THE INFLUENCE OF THE NUMBER OF OPINIONS ON THE ATTRACTIVENESS OF RETAILERS OFFER IN ONLINE SHOPPING.
In Proceedings of the International Conference on e-Business, pages 202-208
DOI: 10.5220/0002186602020208
Copyright
c
SciTePress
(1982) shows that the selection of store type varies
with social and financial risk inherent in the
purchase situation. In the literature on e-commerce,
the risk associated with online shopping in general
(Garbarino and Strahilevitz, 2004) and with specific
retailer (Jarvenpaa, Tractinsky and Vitale, 2000) has
been found to be adversely related to intention to
buy. Biswas and Biswas (2004) demonstrate that
signals such as reputation matter more in e-
commerce because of higher risks associated with
buying online.
1.1 Perceived Risk in Online Shopping
Risk perception regarding the Internet is identified
as a primary obstacle to the future growth of e-
commerce and is one of the main predictors of
consumers’ decisions to shop online or a
conventional store. To understand online customer
behaviour the nature of perceived risk in online
shopping should be taken into account and studies
should be focused on prevalent motivators and
drives of customers once they enter online
environment. Noort, Kerkhof and Fennis (2007)
argued that because of the inherent risk on online
shopping, avoiding losses rather than achieving
gains may become the consumers prime goal.
Motivational factors are important in decision
making process. Higgins’ regulatory focus theory
states that a different psychological system operates
when the goal is loss-avoidance rather than
achieving gains (Higgins, 1997). Regulatory focus
theory posits two separate and independent self-
regulatory orientations: prevention and promotion. A
prevention focus emphasizes safety, responsibility,
and security needs. Goals are viewed as oughts and
there is a strategic concern with approaching non-
losses (the absence of negatives) and avoiding losses
(the presence of negatives). A promotion focus
emphasizes hopes, accomplishments, and
advancement needs. Goals are viewed as ideals, and
there is a strategic concern with approaching gains
(the presence of positives) and avoiding non-gains
(the absence of positives). Accordingly, we expect
online shopping (vs. conventional), by its risky
nature, to induce a prevention-focus self-regulation
among customers.
In spite of the wide advantages of online
shopping (e.g. vast selection, screening, product
comparison, comfortable shopping, time saving
shopping), there are also numerous factors that still
make consumers uncertain about online shopping.
The Internet, just like any type of non-store
shopping, makes it difficult to examine physical
goods; consumers must rely upon somewhat limited
information and pictures shown on the computer
screen (Jarvenpaa and Tractinsky, 1999). Moreover,
there is bound to be much uncertainty regarding
security, reliability, standards and some
communication protocols (Turban, 1999).
To identify perceived risk in e-commerce, Tan
(1999) examined costs and benefits of in-store
versus online shopping. The results showed that
perceived risk is higher when purchasing products
through the Internet than when purchasing by in-
store means. With the respect to specific types of
perceived risk in online shopping, Bhatnagar (2000)
emphasized two types of risk in online shopping:
product category risk and financial risk. Product
category risk is associated with performance risk,
which refers to a negative perception about quality
of a product. Therefore the risk is higher when the
product is technologically complex or the price is
high. Financial risk includes both tangible and
intangible assets of consumers. That means
consumers are quite apprehensive, not only losing
certain amounts of money, but also about losing
private information required in the transaction
(Szymanski and Hise, 2000).
1.2 Retailer Reputation as a Selection
Factor
Word-of mouth communication plays an important
role in reducing consumer risk perception of product
performance to a greater extent that any other
information sources in e-commerce (Tan, 1999).
With respect to reducing consumer perceived risk
and uncertainty, word-of-mouth is more relied on by
consumers than any other information, because it is
based on consumer experience and is especially
vivid. Vividity (as opposed to colourlessly)
presented information tends to have a stronger
influence on product judgement and risk reduction.
Consequently, marketers must participate actively in
creating positive word-of-mouth, because
dissatisfied customers will disseminate news of their
bad experiences with the retailer (Harrison-Walker,
2001). That is, dissatisfied customers participate in
negative word-of-mouth communication, and this
means that new and existing customers become
aware of a perceived risk or uncertainty for future
purchase opportunities. Thus, marketers must
effectively maintain and develop their website
communities, forum, and feedbacks sites in order to
retain satisfied customers and reduce their perceive
risk.
THE INFLUENCE OF THE NUMBER OF OPINIONS ON THE ATTRACTIVENESS OF RETAILERS OFFER IN
ONLINE SHOPPING
203
On the Web, there are concerns about seller
credibility due to the availability of an wide number
of retailers, which is partially due to the perceived
low entry and setup costs for sellers on the Web than
in the conventional economy. As a result, it is
perceived that almost anyone can set up a retail
presence on the Internet at a very low cost. It is also
difficult for consumers to distinguish a high-image
store from a low-image store on the Web, just from
appearance. On the other hand, conventional stores
would have to undergo high monetary expenses to
open up a high-image store in terms of location,
appearance and layout. Therefore, it becomes
difficult for the consumers to distinguish between
“fly-by-night operators” and regular “honest” sellers
in the online markets. (Biswas, Biswas, 2004).
As the result of the higher level of uncertainty
associated with online shopping, customers’ actions
towards collecting information on online retailer
reputation would be stronger than in conventional
retailing.
1.3 Quality Cues
The marketing literature has brought numerous
studies on quality signals and cues used by
customers. The most frequently analyzed cues are
price (Rao, 2005), brand equity (Erdem and Swait,
1998), retailer reputation (Biswas and Biswas, 2004;
Dawar and Parker, 1994), product ingredients
(Richardson, Dick and Jain, 1994), warranties or
guarantees (Purohit and Srivastava, 2001).
Researchers have shown that the most important
cues are brand, then price and retailer reputation.
The total effect of different cues has not been the
sum of their singly effects. This is because the role
of particular cues (excluding brand) have been
abating in multi-cue situation (Rao and Monroe,
1989). There have been some interactions between
cues as well. While the respondents have been
presented expensive tires, the products have been
evaluated positively or negatively depending on
additional information on the manufacturer
reputation (Miyazaki, Grewal and Goodstein, 2005).
Analogically to product evaluation, customers have
been used cues to evaluate unknown quality
(credibility, reliability) of retailer. The number and
character of customers opinions about the retailer
have been likely to play the role of the cues in online
context. If the customer has not acquire other
possibilities to evaluate retailer reputation (retailer
quality), the number of opinions have been of great
consequence.
2 ONLINE SHOPPING IN
POLAND
The e-commerce market in Poland is full of
potential. It is growing faster than Western European
markets and is overtaking Southern European
countries such as Spain and Italy. The value of
Polish e-commerce was estimated to be ca. €2.4
billion online in 2008. However the market value is
expected to grow quickly as Polish consumers
become wealthier. Polish online consumers use the
Internet to gather information about products and
services but still head to a high-street store for the
actual purchase. It's essential that e-retailers in
Poland find ways to turn these "lookers" into
"buyers”.
There is a lot of different research and studies on
attitudes of Polish customers towards online
shopping. Most of them is focused on the barriers of
growing interest of online shopping as well as
disadvantages that Polish customers perceive while
shopping online.
As The National Online Shopping Test showed
Polish customers preferred most attractive offers
from price perspective (The National Online
Shopping Test, 2008). There is the basic argument
for great popularity of online auctions. Over 61% of
the respondents declared to spend money on online
auctions compared to 34% of respondents shopping
in online stores.
In value terms, 60% of e-commerce market is
generated by online auction platforms and 40% of
the market by online shops (Digital Landscape
Report, 2008)
As D-Link Technology Trend research has
revealed, Polish online customers have becoming
more and more interested in the opinions of other
customers published on the Web (e.g. feedback
opinions, customer’s comments on retailer’s
reputation). In 2008 over 77% of online shoppers
was looking for other customers’ opinions compared
to 69% in 2007. The research showed, that there was
a slight decrease in the customers interests to use
price comparisons (53% respondents compared to
77% in 2007) (D-Link Technology Trend, 2008).
The mentioned facts facilitate introductory
research hypotheses that the number and quality of
other customers’ opinion on online seller’s
reputation are more important for Polish online
customers than price level.
The hypotheses could be supported by Polish
customers’ preferences towards terms of payment in
online shopping. According to D-Link Technology
Trend Report, most customers prefer bank transfer
ICE-B 2009 - International Conference on E-business
204
(66%) or cash on delivery (48%). The other
payments (credit cards, special cards for Internet
payments) are used occasionally by 1-2% of
respondents (D-Link Technology Trend, 2008).
According to Digital Landscape Report, 70% of
payments is on cash on delivery basis, 23% -
payment card and 7% - bank transfer. The
mentioned Polish customers’ preferences towards
online payment methods are significantly different
from other countries. In general, 70% of world
online shopping payments is on payment cards basis
and only 5% - cash on delivery ((Digital Landscape
Report, 2008). Poles rarely used payment or credit
cards because they are concerned about security or
they do not have a card allowing them to pay other
the Internet. Polish customers prefer cash on
delivery to secure the transaction, to avoid possible
adverse consequences and to protect themselves
against dishonest online retailer.
3 RESEARCH HYPOTHESES
Regarding previous notes on perceived risk in online
shopping it could be stated that online customers
would take strong actions towards collecting
information on online retailer reputation.
Concerning customers’ buying process, information
on the reputation of online retailer would be as
important as other elements of retailer’s offer (e.g.
price, product). Customers will rely upon other
consumers' opinions and experiences to make
decisions about which merchants (online shop) are
reliable and trustworthy to do business with.
Customers could use the number of opinions as
quality index and trade-off between quality of store
and price level. Here, the customers’ opinions would
play a role of quality cue for online retailer. Based
on the preceding research, this study presents the
following hypothesis:
H1: The higher number of opinions on online
retailers (in comparison with other online shops) the
higher the perceived online shop’s attractiveness.
H2: The lower the price differences the higher
the perceived online shop’s attractiveness.
The number of customers’ opinions published on
the Web would be a critical determinant of purchase
intention. Customers would be influenced by the
number of opinions and by its character (positive or
negative). Customers would be influenced by both
positive and negative opinions. Although it seems
that a number of negative opinions should exercise
more impact on consumers’ decisions comparing to
a number of positive opinions. People willingness to
give greater weight to negative entities (events,
objects) is well recognized in the literature
(Kahneman, Tversky, 1979; Rozin, Royzmann,
2001).
H3: Negative opinions have a greater influence
on perceived online shop’s attractiveness in
comparison to the total number of opinions.
4 STUDY 1
4.1 Design and Procedure
In order to verify the research hypotheses, the study
has been divided into two sub-research: The Study 1
and The Study 2. The empirical study was conducted
through laboratory experiment in January-February
2009.
One admitted shortcoming was that the
collection or participation rate was lower than it
might have been using other methodologies.
However the research method was advantageous in
that it offered preliminary data for future research
projects at reasonable cost.
For The Study 1, they were 59 participating
respondents who were students of one of the top
university of economics in Poland. Two
questionnaires were excluded due to missing data.
The hypotheses were tasted using a 2 (price
differences: high vs. low) x 2 (number of customers’
opinions: high vs. low) between-subjects design.
All the participants were provided with a
scenario. The scenario explained that the participants
should select and evaluate online shops while
purchasing a relatively expensive cellular phone.
The product itself (cellular phone) has not been the
object of customers’ choice and it was stated in
advance of the research. The participants has
received description of seven online shops similar to
those known from price comparison Web sites.
It has included shop’s number (instead if the
shop’s name), the number of other customers’
opinions, the product name (exactly the same for
each shop) and the product price (in increasing
order).
The participants has been asked to answer the
questions in which online shop would they do
shopping and to evaluate the attractiveness of online
shop No 3.
Two independent variables, price difference and
the number of opinions, were manipulated to change
the potential attractiveness of online shop No 3. The
lower, in comparison to the higher, price difference,
was manipulated through reducing the price in
THE INFLUENCE OF THE NUMBER OF OPINIONS ON THE ATTRACTIVENESS OF RETAILERS OFFER IN
ONLINE SHOPPING
205
online shop No 1 from 719 PLN to 689 PLN. The
price level in online shop No 3 was 724 PLN and it
was constant. The higher, in comparison to the lower
number of opinions was manipulated through
changing the number of opinion on shop No 3 from
974 opinions to 94 opinions. The number of
opinions in other shops was constant and presented
as 22 opinions for the shop No 1 and 2763 opinions
for the shop No 5.
The dependent variable has been the
attractiveness of online shop No 3. It has been
presented in point scale from 0 to 100 points (100 -
the most attractive). The additional dependent
variable has constituted the choice of the most
attractive online shop.
4.2 Research Results of Study 1
Supporting the Hypothesis 1 and Hypothesis 2,
analysis of variance (ANOVA) with the
attractiveness of online shop No 3 as a dependent
variable revealed significant main effects for both
price difference, F (1,53)=10.09, p<.001, and the
number of opinions on online shop F(1,53)=5.16,
p<.05. The respondents perceived online shop No 3
as more attractive in comparison to online shop No 1
while price difference was lower (M=78.8) than
while price difference was higher (M=66.1).
Simultaneously, respondents perceived online shop
No 3 as more attractive while the number of
opinions from other customers was high (M=76.6)
then while the number of opinions from other
customers was lower (M=68.1). The findings
support the general research hypothesis that the
customers pay attention to both the price of the
product and the number of opinions on online
retailer.
The selection of online shop as a second
dependent variable revealed much stronger influence
of customers’ opinions on the selection of online
shop. The respondents decided on the online shop
No 5 (58% of respondents) which was characterized
by relatively high price level and simultaneously
with distinctly higher number of customers’
opinions in comparison to other online shops.
Online shop No 3 was selected by 26% of
respondents whereas the cheapest online shop by 9%
of respondents. It allows to make a conclusion that
the price did not play an important role while
selection of online retailer.
The observed relatively low importance of price
factor while selecting online retailer (shop) seems to
be somehow surprising. Polish customers are
perceived to be relatively price sensitive. It should
result in higher share of online shop No 1 in
customers’ decision making process. But the
research revealed a different results. The Authors
suppose that it is the result of the research structure.
The research experimental plan did not force the
respondents to spend their own money. It is easier
then to accept a higher price level. However the
mentioned comments did not shake the research
hypothesis that in decision-making process in online
retailing, the important decision-making factor is the
number of opinions about online shop as well as the
price. The number of customers’ opinions performs
a role of quality signal of online shop.
The number of opinions itself does not reveal
their the character: positive or negative. As the
review of customers’ opinions on several Web sites
shows the published opinions are generally positive
and schematic. Negative opinions appear just
occasionally. But the existence of negative opinions,
even very few, should affect customer’s selection of
online shop. That was the point of interest for The
Study 2.
5 STUDY 2
5.1 Design and Procedure
The Study 2 was similar to The Study 1. The way of
information presentation was similar but the number
of negative customer opinions about online shop was
attached. Table 1 presents the information delivered
to respondents.
Table 1: Stimuli used in the Study 2.
Shop
number
Number of
consumers’
opinions
Number of
negative
consumers’
opinions
Price
1
172 1 699
2
5
0
723.9
3
864* 5* 724
4
33 0 769
5
2763
16
769
6
659 4 794
7
72
0
811
*The number was manipulated
A total of 66 students participated in the Study 2
and three questionnaires were excluded due to the
lack of answers.
The hypotheses were tasted through 2 (the
number of customers’ opinions: high vs. low) x 2
(number of negative customers’ opinions: high vs.
low) between-subjects design.
ICE-B 2009 - International Conference on E-business
206
Leaving out of account online shop No 3, the
relation of total number of opinions to the number of
negative opinions was as 172 to 1. It corresponds to
5 negative opinions out of total 864 and 3 negative
opinions out of total 518. The used numbers of
customers opinions were relevant; the reduction of
total number of opinions by 40% (from 864 to 518)
resulted in the reduction of total number of negative
opinions by 40% (from 5 to 3). If it is supposed that
the total number of negative opinions deeply
affected purchase intention then the general number
of customers’ opinions, online shop No 3 should
have better customers’ evaluation while having 518
customers’ opinions including 3 negative than while
having 864 opinions including 5 negative. In both
situations the relation of total number of customers’
opinions to the number of negative opinions was at
the same level.
5.2 Research Results of Study 2
For the Study 2, both the manipulation of the total
number of opinions and the number of negative
opinions did not bring satisfactory outcomes (F<1).
The respondents gave a higher evaluation to online
shop with total number of 518 customers’ opinions
and three negative opinions (M=83.6) than to shop
with total number of 864 customers’ opinions and
five negative opinions (M=76.7), the difference
between two options was not statistically valid
(t(31)=1.44, ns.).
The interesting findings were observed between
The Study No 1 and 2 in the context of the general
customers’ preferences towards online shop. As the
Study 2 showed, online shop No 1 was preferred by
48% of respondents, shop No 3 – 22% and shop No
5 – 20% of respondents.
The results and outcomes of The Study 2 are not
statistically valid. However some interesting
comments could be formulated on the above
findings. It implies that respondents were influenced
by the number of negative opinions rather than the
relation of the total number of customers’ opinions
to the number of negative opinions. Hence the online
shops with the lower number of negative opinions
were preferred.
There were no introductory assumption that the
lower number of negative opinions the better. The
assumption could be formulated provided suitably
high number of total customers’ opinions.
Therefore there is a nonlinear relation in
applying the number of opinions as quality signal for
online shop. It is necessary to cross the minimal
threshold of opinions for online shop to be
acceptable. Below the minimal threshold, the shop is
not acceptable. Above the minimal threshold, the
total number of opinions is of relatively low
importance. As The Study 1 has indicated, the
number of opinions levelled at 22 has not executed
the minimal level. Hence the low scores for shop 1
has been observed. For the Study 2, the number of
172 opinions for the shop 1 has executed the
minimal level and therefore more customers has
selected that online shop.
The general deduction derived fro the studies is
that customers are interested in shopping with the
lowest possible price but while minimal safety
conditions are fulfilled. The factors reducing
perceived risk are important in decision making
process and online shop selection.
6 CONCLUSIONS
The goal of the study reported here was to examine
the relation between the number of customers’
opinions on online shop and the evaluation criteria
of online shops’ decision-making process where to
shop. With respect to research outcomes, the number
of customers’ opinions could play an advisory role
in evaluation of online shop attractiveness.
However the results did not authorise the statement
that there is a linear correlation between the number
of opinions and perceived shop’s attractiveness. It
could be presumed that there is a nonlinear
correlation. There is a minimal level of opinions and
if the number cross the minimal threshold, the online
shop becomes acceptable. Further research should
focus on defining the minimal threshold. Has it got
an absolute character or it depends on the number of
opinions for other online shops included into
consideration set?
The research indicated that respondents did not
include the relation of the number of negative
opinions to the total number of opinion while
evaluation shop attractiveness. It could not be
excluded that other order rules or heuristic methods
are implemented. The future research could be
designed to examine and comment on those
procedures.
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