Abstract
Literature on product categorization of e-retail products has adopted a consumer view and studied the direct effect on consumer-level variables such as purchase intent or customer satisfaction. In doing so, the moderating effect of product categorization of e-retail products on firm-level variables has been ignored. To address the implications of e-retail product categorization, this chapter asks the following question, What is the moderating effect of e-retail product category on sales performance? This chapter uses concepts of information economics, e-retailing, and the search-experience-credence (SEC) categorization of products to develop theoretical hypotheses. Using data from 500 US e-retailers, this chapter contends that the ease to evaluate retail products online has a positive effect on sales volume of e-retail firms. This effect is the result of increased web traffic and decreased conversion rates, which describes the e-retail market behavior with firm-level variables.
Original language | English |
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Title of host publication | Predicting Trends and Building Strategies for Consumer Engagement in Retail Environments |
Publisher | IGI Global Publishing |
Chapter | 8 |
Pages | 152-168 |
Number of pages | 17 |
ISBN (Electronic) | 9781522578574 |
ISBN (Print) | 9781522578567, 1522578560 |
Publication status | Published - 15 May 2019 |