Results

Found 21 articles

Clear filters

Consumer Participation in Virtual Product Design: 2D vs 3D Product Configurators

2023 | Americas Conference on Information Systems | Citations: 0
Authors: Armeen, Inaiya; Niswanger, Ross; walden, eric

Abstract: The purpose of the proposed study is to investigate the effect of configurator ... Expand

Abstract: The purpose of the proposed study is to investigate the effect of configurator properties, such as the type of visualization and interaction offered, on the value that consumers attach to co-created products and the satisfaction they derive from the design process. To do this, this study will compare 2D product configurators with 3D product configurators. 2D product configurators use a series of images for product visualization whereas 3D configurators use 3D models that provide consumers with the ability to rotate objects in three dimensions. Drawing from the theory of cognitive dissonance, the theory of effectance motivation and the behavioral decision-making literature, this paper suggests that configurator properties influence perceptions of control and effort expenditure which in turn elicit various processes that influence the perceived value of co-created products and consumers' satisfaction with the design process. Collapse

Semantic filters: endowment effect

Topics: decision making new product development participatory design

Methods: design process design methodology laboratory experiment

Theories: endowment effect cognitive dissonance theory
Effect of Market Information on Bidder Attrition in Online Auction Markets

2022 | Management Information Systems Quarterly | Citations: 0
Authors: Ghasemkhani, Hossein; Goes, Paulo; Tripathi, Arvind

Abstract: Information generated in online markets can affect both buyers’ and sellers’ exp ... Expand

Abstract: Information generated in online markets can affect both buyers’ and sellers’ expectations and therefore their choices. In this research, we investigate the effect of market information, generated in online auction markets, on buyers’ expectations and choices. To clear large inventories, sellers often conduct many auctions selling identical items over time, which creates an online auction market where competition dynamics spill over from one to auction to another. In these markets, bidders can participate in many auctions over a period of time, observe market information (supply, demand, and competition), and gain experience to increase their payoffs. We observe that despite having an opportunity to compete and win in future auctions, many bidders stop participating in these auction markets. We argue that observed market information affects their choices. We explore how bidders form expectations about market supply, demand, and competition based on information from two sources—market design parameters and behavior of market participants. By employing a hierarchical Bayesian latent attrition model, we empirically detect and investigate the effect of bidders’ expected market supply, demand, and competition on their attrition in these markets. Our study shows that the effect of market information on attrition is nuanced by bidders’ value heterogeneity. Through the lenses of behavioral economics theories, we show that the attrition behavior of high-value bidders is completely opposite that of low-value bidders. We discuss the practical implications of our findings. Collapse

Semantic filters: endowment effect

Topics: online auction decision making electronic market willingness to pay consumer behavior

Methods: descriptive statistic hidden Markov model Markov chain Monte Carlo conceptual modelling theoretical contribution

Theories: economic theory endowment effect behavioral economics lemon market theory social learning theory
Privacy and the Internet of Things−An experiment in discrete choice
PDF
2021 | Information & Management | Citations: 0
Authors: Goad, David; Collins, Andrew T.; Gal, Uri

Abstract: The Internet of Things (IoT) is the concept that everyday devices are connected ... Expand

Abstract: The Internet of Things (IoT) is the concept that everyday devices are connected to the Internet generating data about us and the world around us. With the number of devices connected directly to the Internet expected to be three times the number of people by 2020, the potential for a reduction in personal privacy is evident. This research fills a gap in the literature by conducting a quantitative analysis of people’s privacy preferences as it relates to the IoT. Our findings provide potential guidance to practitioners in their IoT architectural design and increase our understanding of privacy preference overall. Collapse

Semantic filters: endowment effect

Topics: privacy mobile system internet of things information privacy concern fitness tracker

Methods: survey statistical hypothesis test experimental design literature study experiment

Theories: privacy calculus theory personality theory social cognitive theory endowment effect information boundary theory
Adaptation of New Organizations to Legitimacy Shocks: Postbellum Firearms Firms in the U.S. South, 1866–1914
PDF
2020 | Organization Science | Citations: 0
Authors: Kasbekar, Chirag

Abstract: In the wake of exogenous institutional change, organizational populations often ... Expand

Abstract: In the wake of exogenous institutional change, organizational populations often experience a legitimacy shock. As a new institutional logic becomes dominant, old symbols and practices are delegitimated and new ones legitimated. Old symbols and practices persist into the postshock period, however, forming an ecology of diverse cohorts and audience schemas, some divergent and others convergent with the new institutional logic. Because new organizations look to their rivals for knowledge of how to cope, I examine how the shifting alignment of a rival cohort to changing audience schemas influences a new organization’s own alignment and, thus, mortality. I propose that density at founding of divergent preshock organizational cohorts early in the postshock period reduces a new organization’s mortality due to an initial endowment effect and then becomes more mortality-increasing over time as maladaptive imprints take over. Density at founding of convergent postshock organizational cohorts has a U-shaped effect on mortality—similar to that caused by a legitimacy vacuum—but this effect emerges after a delay as legitimation processes begin to dominate delegitimation processes. Also, following Red Queen theory, I argue that competitive experience with divergent organizational cohorts increases mortality, but competitive experience with convergent organizational cohorts decreases mortality. To test these arguments, I use the institutional shock of the American Civil War—during which the firearms industry of the U.S. South underwent a period of government-led command-and-control centralization—as a natural experiment. The findings are consistent with the main arguments, though the overall postshock effect of density at founding appears to be dominated by early stage endowment effects, contrary to assumptions. Collapse

Semantic filters: endowment effect

Topics: armed conflict accounting geographic information system

Methods: natural experiment Nelson–Aalen estimator statistical hypothesis test hazard function

Theories: endowment effect
WILL RENTING SUBSTITUTE BUYING? DRIVERS OF USER INTENTION TO PARTICIPATE IN RENTAL-COMMERCE

2019 | European Conference On Information Systems | Citations: 0
Authors: Fota, Anne; Wagner, Katja; Schramm-Klein, Hanna

Abstract: In recent years, consumer consumption has undergone massive change. Different co ... Expand

Abstract: In recent years, consumer consumption has undergone massive change. Different consumption forms, such as collaborative consumption or access-based consumption, are on the rise in the environment of the sharing economy. A relatively new field is rental-commerce, in which users rent everyday products via an online website for a fixed period of time and a fixed (e.g. daily or monthly) price. To investigate this new phenomenon, we examined what drives inexperienced users to take part in rental-commerce. Our results showed that sustainability, economic benefits, trust, safety, complexity, and knowledge of rental-commerce serve as predictors of the intention to rent products via a rental-commerce website. Surprisingly, knowledge of terms of use has no significant influence on this behavioral intention. As such, rental-commerce retailers should pay special attention to these results and highlight the advantages to determine users’ willingness to take part in this business model. Collapse

Semantic filters: endowment effect

Topics: behavioral intention website usage intention collaborative consumption sharing platform

Methods: partial least squares regression survey statistical hypothesis test structural equation modeling PLS tool

Theories: endowment effect property rights theory
Do Search Engines Influence Media Piracy? Evidence from a Randomized Field Study
PDF
2019 | Management Information Systems Quarterly | Citations: 0
Authors: Sivan, Liron; Smith, Michael D.; Telang, Rahul

Abstract: Many papers in the literature have analyzed the role search rank plays in influe ... Expand

Abstract: Many papers in the literature have analyzed the role search rank plays in influencing user choices for the same product offered through different links. However, the literature has not analyzed whether search position can cause users to change their consumption between two ex ante distinct product categories. We analyze this question in the context of the ongoing public policy debate surrounding the role search engines can play in anti-piracy efforts. Specifically, we analyze whether reducing the prominence of infringing links can impact users choices between legal and infringing content. To do this we design a customized search engine that allows us to manipulate the positions of infringing and legal links in users' search results. We then use this search engine to conduct experiments on a general population of users and on a subset of college-aged users. Our data show that reducing the prominence of infringing links in search results causes users who otherwise would have consumed infringing content to switch their consumption to paid legal content, and that these results hold even among users whose initial search queries express an explicit preference for infringing content. These results suggest that even small changes in the cost of discovering pirated content can have a relatively large impact on user behavior. As such, our results inform an important public policy debate by showing that search engines have a vital role to play in the fight against online copyright theft. Collapse

Semantic filters: endowment effect

Topics: search engine user behavior logistics management Google+ consumer behavior

Methods: experiment survey experimental group Student's t-test experimental design

Theories: endowment effect
Failure Is an Option: Institutional Change, Entrepreneurial Risk, and New Firm Growth
PDF
2017 | Organization Science | Citations: 34
Authors: Eberhart, Robert N.; Eesley, Charles E.; Eisenhardt, Kathleen M.

Abstract: Does an institutional change that lowers failure barriers improve new firm growt ... Expand

Abstract: Does an institutional change that lowers failure barriers improve new firm growth? We take advantage of a quasi-natural experiment in Japan that drastically reduced the stringency of bankruptcy regulations to examine this question. Using longitudinal data over a 10-year period, we find that bankruptcy reform increases the rates of bankruptcy and founding—and, more importantly, the likelihood of high-growth ventures—by disproportionately encouraging elite individuals (i.e., those with superior human and social capital) to start firms. In turn, these firms are more likely than others to achieve high growth. Broadly put, we contribute to research at the nexus of institutional theory and entrepreneurship by emphasizing the connectedness of barriers to failure, venture growth, and elite entrepreneurs. We also highlight how institutional change that eases bankruptcy change can foster a regenerative cycle of failure, founding, and growth by attracting more capable entrepreneurs. Overall, we conclude that lowering barriers to failure via lenient bankruptcy laws encourages more capable—and not just more—entrepreneurs to start firms. The online appendix is available at https://doi.org/10.1287/orsc.2017.1110. Collapse

Semantic filters: endowment effect

Topics: database system entrepreneurship social capital anonymity human resource management

Methods: experimental group Student's t-test longitudinal research robustness check qualitative interview

Theories: institutional theory theory of economic growth endowment effect
On Self-Selection Biases in Online Product Reviews

2017 | Management Information Systems Quarterly | Citations: 0
Authors: Hu, Nan; Pavlou, Paul A.; Zhang, Jie

Abstract: Online product reviews help consumers infer product quality, and the mean (avera ... Expand

Abstract: Online product reviews help consumers infer product quality, and the mean (average) rating is often used as a proxy for product quality. However, two self-selection biases, acquisition bias (mostly consumers with a favorable predisposition acquire a product and hence write a product review) and underreporting bias (consumers with extreme, either positive or negative, ratings are more likely to write reviews than consumers with moderate product ratings), render the mean rating a biased estimator of product quality, and they result in the well-known J-shaped (positively skewed, asymmetric, bimodal) distribution of online product reviews. To better understand the nature and consequences of these two self-selection biases, we analytically model and empirically investigate how these two biases originate from consumers’ purchasing and reviewing decisions, how these decisions shape the distribution of online product reviews over time, and how they affect the firm’s product pricing strategy. Our empirical results reveal that consumers do realize both self-selection biases and attempt to correct for them by using other distributional parameters of online reviews, besides the mean rating. However, consumers cannot fully account for these two self-selection biases because of bounded rationality. We also find that firms can strategically respond to these self-selection biases by adjusting their prices. Still, since consumers cannot fully correct for these two self-selection biases, product demand, the firm’s profit, and consumer surplus may all suffer from the two self-selection biases. This paper has implications for consumers to leverage online product reviews to infer true product quality, for commercial websites to improve the design of their online product review systems, and for product manufacturers to predict the success of their products. Collapse

Semantic filters: endowment effect

Topics: online review price management DVD IS economics consumer surplus

Methods: product review mathematical model laboratory experiment regression analysis method descriptive statistic

Theories: theory of bounded rationality social influence theory utility theory endowment effect
The effect of free sampling strategies on freemium conversion rates
PDF
2017 | Electronic Markets | Citations: 32
Authors: Koch, Oliver Francis; Benlian, Alexander

Abstract: Freemium business models, where companies offer a free basic and a value-enhance ... Expand

Abstract: Freemium business models, where companies offer a free basic and a value-enhanced paid version of a product, have become ubiquitous across software, games and a broad range of web services. Despite the many benefits of freemium, most firms suffer from too few premium subscribers (3–5 %), which challenges their profitability. Although free trials have helped improve premium conversions, research hitherto has paid little attention towards what works effectively. Therefore, we examine the effect of two common free trial strategies on consumers’ conversion likelihood: Freefirst, where consumers start in the free and then opt into a trial of the premium version and Premiumfirst, where things are experienced in reverse order. Based on a contest-based online experiment with 225 subjects, our analysis reveals that in contrast to Freefirst, Premiumfirst significantly increases conversion propensity and that this positive effect is greater when the premium and the free version are more similar. Collapse

Semantic filters: endowment effect

Topics: business model electronic mail advertising management consumer behavior website

Methods: experiment survey logistic regression statistical hypothesis test survey design

Theories: loss aversion behavioral economics endowment effect
Nudging Users Into Online Verification: The Case of Carsharing Platforms

2017 | International Conference on Information Systems | Citations: 17
Authors: Schneider, David; Lins, Sebastian; Grupp, Tillmann; Benlian, Alexander; Sunyaev, Ali

Abstract: With the emergence of new technologies, user transactions have become increasing ... Expand

Abstract: With the emergence of new technologies, user transactions have become increasingly digital and thus anonymous. As a result, online platforms started offering new user identity verification mechanisms including online verification. However, convincing users to verify online represents a challenge as benefits must be carefully balanced with resulting risks. We combine Toulmin’s model of argumentation with Regulatory Focus Theory to develop communication arguments to nudge users into online verification. Two argument types consisting of both claim and claim-supporting data are employed: a promotion-focus argument conveying convenience and a prevention-focus argument aiming to reduce privacy concerns. In a controlled experiment, we find that both claims significantly increase online verification conversion rate if supported by data. The effect of a prevention-focus claim is stronger than that of a promotion-focus claim. However, if a prevention-focus claim is not supported by data, it actually decreases online verification rate compared to if no claim is shown. Collapse

Semantic filters: endowment effect

Topics: information privacy concern digital platform ride sharing platform privacy website

Methods: experimental group experiment survey survey design experimental design

Theories: argumentation theory human-computer interaction theory regulatory focus theory loss aversion endowment effect

Page 1 of 3 Next

AIS11

Journals

Conferences

Semantic Filter

Found 21 articles

Consumer Participation in Virtual Product Design: 2D vs 3D Product Configurators

Effect of Market Information on Bidder Attrition in Online Auction Markets

Privacy and the Internet of Things−An experiment in discrete choice

Adaptation of New Organizations to Legitimacy Shocks: Postbellum Firearms Firms in the U.S. South, 1866–1914

WILL RENTING SUBSTITUTE BUYING? DRIVERS OF USER INTENTION TO PARTICIPATE IN RENTAL-COMMERCE

Do Search Engines Influence Media Piracy? Evidence from a Randomized Field Study

Failure Is an Option: Institutional Change, Entrepreneurial Risk, and New Firm Growth

On Self-Selection Biases in Online Product Reviews

The effect of free sampling strategies on freemium conversion rates

Nudging Users Into Online Verification: The Case of Carsharing Platforms