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: Tiny lasers from a gallery of whispers

New technique promises tunable laser devices

Whispering gallery mode (WGM) resonators are used to make tiny micro-lasers, sensors, switches, routers and other devices. These tiny structures rely on a...

Im Focus: Ultrafast snapshots of relaxing electrons in solids

Using ultrafast flashes of laser and x-ray radiation, scientists at the Max Planck Institute of Quantum Optics (Garching, Germany) took snapshots of the briefest electron motion inside a solid material to date. The electron motion lasted only 750 billionths of the billionth of a second before it fainted, setting a new record of human capability to capture ultrafast processes inside solids!

When x-rays shine onto solid materials or large molecules, an electron is pushed away from its original place near the nucleus of the atom, leaving a hole...

Im Focus: Quantum Sensors Decipher Magnetic Ordering in a New Semiconducting Material

For the first time, physicists have successfully imaged spiral magnetic ordering in a multiferroic material. These materials are considered highly promising candidates for future data storage media. The researchers were able to prove their findings using unique quantum sensors that were developed at Basel University and that can analyze electromagnetic fields on the nanometer scale. The results – obtained by scientists from the University of Basel’s Department of Physics, the Swiss Nanoscience Institute, the University of Montpellier and several laboratories from University Paris-Saclay – were recently published in the journal Nature.

Multiferroics are materials that simultaneously react to electric and magnetic fields. These two properties are rarely found together, and their combined...

Im Focus: Fast, convenient & standardized: New lab innovation for automated tissue engineering & drug

MBM ScienceBridge GmbH successfully negotiated a license agreement between University Medical Center Göttingen (UMG) and the biotech company Tissue Systems Holding GmbH about commercial use of a multi-well tissue plate for automated and reliable tissue engineering & drug testing.

MBM ScienceBridge GmbH successfully negotiated a license agreement between University Medical Center Göttingen (UMG) and the biotech company Tissue Systems...

Im Focus: Silencing bacteria

HZI researchers pave the way for new agents that render hospital pathogens mute

Pathogenic bacteria are becoming resistant to common antibiotics to an ever increasing degree. One of the most difficult germs is Pseudomonas aeruginosa, a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

“Lasers in Composites Symposium” in Aachen – from Science to Application

19.09.2017 | Event News

I-ESA 2018 – Call for Papers

12.09.2017 | Event News

EMBO at Basel Life, a new conference on current and emerging life science research

06.09.2017 | Event News

 
Latest News

Molecular Force Sensors

20.09.2017 | Life Sciences

Producing electricity during flight

20.09.2017 | Power and Electrical Engineering

Tiny lasers from a gallery of whispers

20.09.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>