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Article: Does sampling influence customers in online retailing of digital music?

TitleDoes sampling influence customers in online retailing of digital music?
Authors
KeywordsConversion rate
Digital music
Empirical study
Endogeneity
Online market
Product reviews
Sampling
Issue Date2010
PublisherSpringer Verlag.
Citation
Information Systems And E-Business Management, 2010, v. 8 n. 4, p. 357-377 How to Cite?
AbstractOnline retailers have taken recourse to many smart marketing strategies to sell digital music. This paper investigates the strategic decisions of online vendors for offering different mechanisms such as sampling and online reviews of digital music to increase their online sales. In this research we seek answers to the following research questions (1) should online retailers offer sampling for experience goods such as music CDs; (2) under what circumstances is offering sampling more important than offering reviews. Our empirical study shows that online markets behave as communication markets, and consumers learn about product quality information both passively (by reading online reviews) and actively but subjectively (by listening to music sampling). Using data from Amazon.com, we empirically show that sampling is a strong product quality signal that reduces product uncertainty and attracts interested shoppers. Products with the sampling option enjoy a higher conversion rate (which leads to better sales) than those without it. Second, the impact of online reviews on conversion rate is lower for experience goods with a sampling option than those without. Third, when the uncertainty of the online reviews is higher, sampling plays a more important role because it mitigates the uncertainty introduced by online reviews. We believe this paper makes an important contribution by comparing and studying the interactions between two commonly adopted online marketing strategies (i. e., sampling versus online reviews) and provides important insights on which strategy is beneficial for vendors in the context of online selling of digital music. © 2009 Springer-Verlag.
Persistent Identifierhttp://hdl.handle.net/10722/139823
ISSN
2015 Impact Factor: 0.953
2015 SCImago Journal Rankings: 0.439
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorHu, Nen_HK
dc.contributor.authorLiu, Len_HK
dc.contributor.authorBose, Ien_HK
dc.contributor.authorShen, Jen_HK
dc.date.accessioned2011-09-23T05:57:03Z-
dc.date.available2011-09-23T05:57:03Z-
dc.date.issued2010en_HK
dc.identifier.citationInformation Systems And E-Business Management, 2010, v. 8 n. 4, p. 357-377en_HK
dc.identifier.issn1617-9846en_HK
dc.identifier.urihttp://hdl.handle.net/10722/139823-
dc.description.abstractOnline retailers have taken recourse to many smart marketing strategies to sell digital music. This paper investigates the strategic decisions of online vendors for offering different mechanisms such as sampling and online reviews of digital music to increase their online sales. In this research we seek answers to the following research questions (1) should online retailers offer sampling for experience goods such as music CDs; (2) under what circumstances is offering sampling more important than offering reviews. Our empirical study shows that online markets behave as communication markets, and consumers learn about product quality information both passively (by reading online reviews) and actively but subjectively (by listening to music sampling). Using data from Amazon.com, we empirically show that sampling is a strong product quality signal that reduces product uncertainty and attracts interested shoppers. Products with the sampling option enjoy a higher conversion rate (which leads to better sales) than those without it. Second, the impact of online reviews on conversion rate is lower for experience goods with a sampling option than those without. Third, when the uncertainty of the online reviews is higher, sampling plays a more important role because it mitigates the uncertainty introduced by online reviews. We believe this paper makes an important contribution by comparing and studying the interactions between two commonly adopted online marketing strategies (i. e., sampling versus online reviews) and provides important insights on which strategy is beneficial for vendors in the context of online selling of digital music. © 2009 Springer-Verlag.en_HK
dc.languageengen_US
dc.publisherSpringer Verlag.en_US
dc.relation.ispartofInformation Systems and e-Business Managementen_HK
dc.rightsThe original publication is available at www.springerlink.comen_US
dc.subjectConversion rateen_HK
dc.subjectDigital musicen_HK
dc.subjectEmpirical studyen_HK
dc.subjectEndogeneityen_HK
dc.subjectOnline marketen_HK
dc.subjectProduct reviewsen_HK
dc.subjectSamplingen_HK
dc.titleDoes sampling influence customers in online retailing of digital music?en_HK
dc.typeArticleen_HK
dc.identifier.emailBose, I: bose@business.hku.hken_HK
dc.identifier.authorityBose, I=rp01041en_HK
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1007/s10257-009-0116-6en_HK
dc.identifier.scopuseid_2-s2.0-77958470609en_HK
dc.identifier.hkuros193209en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-77958470609&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume8en_HK
dc.identifier.issue4en_HK
dc.identifier.spage357en_HK
dc.identifier.epage377en_HK
dc.identifier.isiWOS:000286336800003-
dc.publisher.placeGermanyen_HK
dc.identifier.scopusauthoridHu, N=14619332100en_HK
dc.identifier.scopusauthoridLiu, L=26643067500en_HK
dc.identifier.scopusauthoridBose, I=7003751502en_HK
dc.identifier.scopusauthoridShen, J=8987190800en_HK
dc.identifier.citeulike4447831-

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