Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Unfavourable price comparisons still benefit e-businesses

09.04.2003


New research from the University of Alberta has found that an online business can benefit from listing its competitors’ products, even if some of those comparisons are unfavourable for the firm.



Dr. Gerald Haeubl, the Banister professor of electronic commerce at the U of A’s School of Business, investigated how digital agents, such as the Internet, influence the online shopping experience. Surprisingly, he found that when a company lists its competitors’ prices of identical products—even if the competitions’ prices are lower—shoppers will still buy from the company.

"One reason is that the provision of such access increases the perceived trustworthiness of the firm," said Haeubl.


This research, which is published in the current edition of the international journal Consumer Psychology, is timely considering the rapid growth of electronic commerce. It specifically examines the role of electronic recommendation agents—software tools that allows shoppers to input preference and then produce personalized product suggestions.

As a result of the growing importance of online shopping, the environments in which consumers make purchase decisions are increasingly artificial, rather than physical in nature. Because of this trend, it is essential to develop a deeper understanding of how consumers construct their preferences in such artificial marketplaces, said Haeubl, who worked on the paper with Kyle Murray, a PhD student in the School of Business.

"Although electronic shopping environments are not subject to the space constraints of physical stores, consumers who shop in such artificial marketplaces are nevertheless subject to the familiar cognitive constraints in terms of their ability to process information," said Haeubl. "Electronic recommendation agents can play a key role in reducing the amount of information about available products that has to be processed by consumers and helping them make better decisions with limited cognitive effort."


###
The U of A in Edmonton, Alberta is one of Canada’s premier teaching and research universities serving more than 33,000 students with 6,000 faculty and staff. It continues to lead the country with the most 3M Teaching Fellows, Canada’s only national award recognizing teaching excellence.

Phoebe Dey | EurekAlert!
Further information:
http://www.ualberta.ca/

More articles from Communications Media:

nachricht New Technologies for A/V Analysis and Search
13.04.2017 | Fraunhofer-Institut für Digitale Medientechnologie IDMT

nachricht On patrol in social networks
25.01.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Communications Media >>>

The most recent press releases about innovation >>>

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

Im Focus: Making lightweight construction suitable for series production

More and more automobile companies are focusing on body parts made of carbon fiber reinforced plastics (CFRP). However, manufacturing and repair costs must be further reduced in order to make CFRP more economical in use. Together with the Volkswagen AG and five other partners in the project HolQueSt 3D, the Laser Zentrum Hannover e.V. (LZH) has developed laser processes for the automatic trimming, drilling and repair of three-dimensional components.

Automated manufacturing processes are the basis for ultimately establishing the series production of CFRP components. In the project HolQueSt 3D, the LZH has...

Im Focus: Wonder material? Novel nanotube structure strengthens thin films for flexible electronics

Reflecting the structure of composites found in nature and the ancient world, researchers at the University of Illinois at Urbana-Champaign have synthesized thin carbon nanotube (CNT) textiles that exhibit both high electrical conductivity and a level of toughness that is about fifty times higher than copper films, currently used in electronics.

"The structural robustness of thin metal films has significant importance for the reliable operation of smart skin and flexible electronics including...

Im Focus: Deep inside Galaxy M87

The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.

Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...

Im Focus: A Quantum Low Pass for Photons

Physicists in Garching observe novel quantum effect that limits the number of emitted photons.

The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...

Im Focus: Microprocessors based on a layer of just three atoms

Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.

Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Expert meeting “Health Business Connect” will connect international medical technology companies

20.04.2017 | Event News

Wenn der Computer das Gehirn austrickst

18.04.2017 | Event News

7th International Conference on Crystalline Silicon Photovoltaics in Freiburg on April 3-5, 2017

03.04.2017 | Event News

 
Latest News

Molecular libraries for organic light-emitting diodes

24.04.2017 | Life Sciences

Research sheds new light on forces that threaten sensitive coastlines

24.04.2017 | Earth Sciences

Making lightweight construction suitable for series production

24.04.2017 | Machine Engineering

VideoLinks
B2B-VideoLinks
More VideoLinks >>>