Literature Review final final - Literature Review Topic Online Marketing Group 07 Section 04 Usefulness of Online Marketer Recommendations Compared

Literature Review final final - Literature Review...

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Literature Review Topic: Online MarketingGroup: 07Section: 04Usefulness of Online Marketer Recommendations:Compared to formal commercial marketing channels such as advertisements, online marketers’recommendations constitute a kind of informal communication channel. Consumers usuallyrelate to the recommendations from online marketers positively since their opinions are non-commercial (FIND, 2005). Empirically, Lim et al. (2006) verified that endorsements fromsatisfied consumers significantly affect other consumers’ purchases. Moreover, many immediate interactions occur between online marketers and customers as onlinecan be a two-way communication channel, not only one-way as commercial advertisements(Bernoff and Li, 2008). Therefore, online marketers’ recommendations are more reliable andvaluable than commercial information (Wu, 2011). The technology acceptance model (TAM) is aparsimonious, theoretically and empirically justified model intended to explain the acceptance ofinformation system/information technology (IS/IT). Previous research has demonstrated thevalidity of TAM across a wide range of IS/IT (Bigne´-Alcan˜ iz et al., 2008; Deng et al., 2010;Lin and Lu, 2000; Lee and Chang, 2011; Tero et al., 2004). Online marketers’ recommendation is designed to increase sales. This study thus examines theeffectiveness of such recommendation by focusing on online purchase intention forrecommended products, assuming that it is a predictor of consumer purchase behavior. Based onTRA, consumer purchase behavior is determined by their purchase intention, which in turn isdetermined by both attitude toward the purchase behavior and the subjective norm regarding thebehavior. This study defines online purchase intention as the strength of consumer intention topurchase a recommended product via online. Ho and Wu (1999) suggest that in electronic commerce all potential internet users are potentialcustomers. For business to win this potential customer and to convert them into real one dependson effective customer relationship management. Online services such as, easy search of productand services, provisions of product specifications that reduce communication costs, secureelectronic payment systems to complete transactions, updated product delivery information andquick responses to customers queries are important to win online customers and to make themkeep coming back to the site for further purchases (Turban et.al., 2000). Archer and Gabauer (2000) emphasize that building and maintaining customer relationships arethe key to success in e-commerce, which depends on maintaining effective customer service. InB2C e-commerce, (Singh et. al., 2001) suggests that effective customer support and services arevital to encourage customers to shop online as it is a lonely experience, does not allow touch andfeel and have a high degree of concern regarding security and privacy of information.
For shoppers, easy access to large amounts of product information is both a blessing and a curse.

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