Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Recommendations by other customers significantly influence Internet purchasing behavior

18.11.2014

Customer endorsement has the most prominent effect on private online purchasing activity

The online purchasing behavior of private individuals shopping in their leisure time is heavily influenced by recommendations made by other customers. This is the conclusion drawn by researchers at Johannes Gutenberg University Mainz (JGU) and Technische Universität (TU) Darmstadt.

Customer endorsements, in the form of Facebook 'Likes' for example, have a particularly marked influence on online buying behavior when consumers shop in the afternoon, evening, or at the weekend. There are certain economic theories concerning consumer attitudes to purchasing that, in the view of the researchers, can help explain this phenomenon.

This involves the so-called 'hedonistic' buying behavior, in which purchasing is not a pragmatic process and also comparatively more time-consuming. The implication is that the recommendations made by other customers can influence and guide the 'hedonistic' shopper in their search for new and interesting products. During normal working hours before 3.00 pm, 'Likes' are far less influential as purchasers are usually working through a concrete shopping list.

Online retail is booming. The sector now generates annual world-wide revenues of about 1 trillion US dollars. A previous study by the research team headed by business informatics specialist Dr. Jörn Grahl of Mainz University demonstrated that online purchasing behavior is heavily influenced by the recommendations made by other customers.

In the study with a duration of almost four weeks that involved a toy and game mail order company, the display of social network endorsements such as the Facebook 'Like' thumbs-up sign and the '+1' button in Google+ resulted in a 13 percent increase in sales in the test group in comparison with a control group. "In view of the enormous revenues now being generated online, it is possible that 'Likes' and other user-generated content are responsible for triggering herd behavior-like effects that may be of more general economic relevance," said Professor Franz Rothlauf of Mainz University’s Gutenberg School of Management and Economics.

More recent investigations have shown that this boost to turnover is primarily caused by Internet users’ leisure time purchases. The researchers discovered that, when people were shopping online in their free time, social media recommendations made a purchase 18 percent more likely while spending increased by almost 26 percent. "Endorsements provided by other Internet users thus have an enormous influence on hedonistic shopping and impulse purchasing," explained Grahl.

Information and recommendations on social media reinforce recreational and self-indulgent buying behavior. "When it comes to planned or targeted purchases, other people's opinions play hardly any role at all," said Professor Oliver Hinz of TU Darmstadt. During the day and early afternoon, i.e., during the main working hours when users have little time to browse, Facebook 'Likes' and Google’s '+1' have next to no effect on purchasing intentions. The study was undertaken with the collaboration of Spiele-Offensive.de, a medium-sized online games mail order company selling board and party games.

Further information:
Dr. Jörn Grahl
Information Systems & Business Administration
Gutenberg School of Management and Economics
Johannes Gutenberg University Mainz
55099 Mainz, GERMANY
phone +49 6131 39-27209
fax +49 6131 39-22185
e-mail: grahl@uni-mainz.de
http://wi.bwl.uni-mainz.de/grahl.html.en


Weitere Informationen:

http://www.emarkets.tu-darmstadt.de/forschung/working-paper-series/  – article "The Impact of User-Generated Content on Sales: A Randomized Field Experiment" ;
http://www.uni-mainz.de/presse/16465_ENG_HTML.php  – press release "Facebook recommendations could be worth millions of euros" - June 3, 2013

Petra Giegerich | idw - Informationsdienst Wissenschaft

More articles from Studies and Analyses:

nachricht New study from the University of Halle: How climate change alters plant growth
12.01.2018 | Martin-Luther-Universität Halle-Wittenberg

nachricht Disarray in the brain
18.12.2017 | Universität zu Lübeck

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Scientists decipher key principle behind reaction of metalloenzymes

So-called pre-distorted states accelerate photochemical reactions too

What enables electrons to be transferred swiftly, for example during photosynthesis? An interdisciplinary team of researchers has worked out the details of how...

Im Focus: The first precise measurement of a single molecule's effective charge

For the first time, scientists have precisely measured the effective electrical charge of a single molecule in solution. This fundamental insight of an SNSF Professor could also pave the way for future medical diagnostics.

Electrical charge is one of the key properties that allows molecules to interact. Life itself depends on this phenomenon: many biological processes involve...

Im Focus: Paradigm shift in Paris: Encouraging an holistic view of laser machining

At the JEC World Composite Show in Paris in March 2018, the Fraunhofer Institute for Laser Technology ILT will be focusing on the latest trends and innovations in laser machining of composites. Among other things, researchers at the booth shared with the Aachen Center for Integrative Lightweight Production (AZL) will demonstrate how lasers can be used for joining, structuring, cutting and drilling composite materials.

No other industry has attracted as much public attention to composite materials as the automotive industry, which along with the aerospace industry is a driver...

Im Focus: Room-temperature multiferroic thin films and their properties

Scientists at Tokyo Institute of Technology (Tokyo Tech) and Tohoku University have developed high-quality GFO epitaxial films and systematically investigated their ferroelectric and ferromagnetic properties. They also demonstrated the room-temperature magnetocapacitance effects of these GFO thin films.

Multiferroic materials show magnetically driven ferroelectricity. They are attracting increasing attention because of their fascinating properties such as...

Im Focus: A thermometer for the oceans

Measurement of noble gases in Antarctic ice cores

The oceans are the largest global heat reservoir. As a result of man-made global warming, the temperature in the global climate system increases; around 90% of...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

10th International Symposium: “Advanced Battery Power – Kraftwerk Batterie” Münster, 10-11 April 2018

08.01.2018 | Event News

See, understand and experience the work of the future

11.12.2017 | Event News

Innovative strategies to tackle parasitic worms

08.12.2017 | Event News

 
Latest News

White graphene makes ceramics multifunctional

16.01.2018 | Materials Sciences

Breaking bad metals with neutrons

16.01.2018 | Materials Sciences

ISFH-CalTeC is “designated test centre” for the confirmation of solar cell world records

16.01.2018 | Power and Electrical Engineering

VideoLinks
B2B-VideoLinks
More VideoLinks >>>