Can you imagine? The effect of
online product representation mode
on search and experience good
preference
Thesis MSc Marketing Intelligence defense A.M van Prooijen
Table of content
› Introduction
› Theoretical framework
▪Conceptual model
▪Hypotheses
› Methodology
› Results
Introduction
› Problem: Perceived risk when shopping online.
› Can be regulated by the information on the website (Montoya-Weiss, Voss, & Grewal, 2003; Overmars & Poels, 2015;
Ramanathan, 2010).
› Product representation mode aids product-related information (Li, Wei, Tayi, & Tan, 2016).
› Augmented Reality
▪ Positive effect on attitude, user satisfaction, purchase intention
and sharing brand experience (Brito, Stoyanova, & Coelho, 2016; Chu, & Sauer, 2017; Poushneh & Vasquez-Parraga, 2017; Yim & Park, 2018)
› Effectiveness of AR under different conditions?
Research question: “What is the impact of Augmented Reality on
product preference and what is the role of product type, product price and brand familiarity?”
Conceptual model
› The effect of online product representation mode on choice utility. › Moderators: product price and brand familiarity.
› Comparison across search and experience product type.
Figure 1 Conceptual model
Choice utility Online product representation mode
- Solid background - Context background - 360 degrees rotation - Augmented Reality Brand familiarity - Unfamiliar - Familiar H1a+,b+,c H3a+,b+,c H5a+,b+,c Product price H2a+,b+ H4a-,
Methodology
› Choice-based Conjoint (CBC)▪ Fractional factorial design; 11 random choice sets, 3
alternatives and dual-response no choice option.
▪ Two surveys
a) search good: television b) experience good: sofa
Product type: Search good (television)
Attribute Level 1 Level 2 Level 3 Level 4 Specification
Online product representation mode Solid background product picture Context background product picture 360 degrees product rotation Augmented Reality part-worth Brand familiarity Samsung Sony Xinoa Atrumai part-worth Product price $319 $349 $379 $409 linear Delivery cost Free $9 $15 $29 linear Product type: experience good (sofa)
Attribute Level 1 Level 2 Level 3 Level 4 Specification
Online product representation mode Solid background product picture Context background product picture 360 degrees product rotation Augmented Reality part-worth Brand familiarity IKEA Walmart Hausmann SEAT&SIT part-worth Product price $199 $229 $259 $289 linear Delivery cost Free $9 $15 $29 linear
Table 2 Attributes and levels
Results (1)
6% 10% 61% 23% Relative importance sofa (n=271)Product representation mode Brand familiarity Product price Delivery cost 11% 37% 31% 21% Relative importance television (n=231)
Product representation mode Brand familiarity
Results (2)
Main effects
› Product representation mode:
▪ Tangibility of online product representation mode does NOT lead to a
higher consumers’ choice utility.
▪ AR less preferred (experience good).
› Brand familiarity:
▪ Brand familiarity has a positive effect on consumers’ choice utility.
› Product price & delivery cost
Brand familiarity
Searc
h
Choice utility Product representation mode
Implications
› Product representation mode:
▪ Advised: solid background
- accounted for brand familiarity moderation effect
▪ Not advised: AR for experience good
› Attractive segment:
▪ Low pricing strategy → segment 4: price sensitive
Limitations & Future research
› One search and experience product type.
▪ Examine other products.
› Measurement brand familiarity not fully robust.
▪ Pre-test brand familiarity or exclude.
