Effect of E-Retail Product Category on Performance

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Author(s): Erik Ernesto Vazquez (University of Monterrey, Mexico)
Copyright: 2019
Pages: 17
Source title: Predicting Trends and Building Strategies for Consumer Engagement in Retail Environments
Source Author(s)/Editor(s): Giuseppe Granata (University of Cassino and Southern Lazio, Italy), Andrea Moretta Tartaglione (University of Cassino and Southern Lazio, Italy)and Theodosios Tsiakis (Alexander Technological Educational Institute of Thessaloniki, Greece)
DOI: 10.4018/978-1-5225-7856-7.ch008

Keywords: Business & Management / Business Science Reference / Consumer Management / Marketing and Consumer Behavior

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Abstract

Literature on product categorization of e-retail products has adopted a consumer view and studied the direct effect on consumer-level variables such as purchase intent or customer satisfaction. In doing so, the moderating effect of product categorization of e-retail products on firm-level variables has been ignored. To address the implications of e-retail product categorization, this chapter asks the following question, What is the moderating effect of e-retail product category on sales performance? This chapter uses concepts of information economics, e-retailing, and the search-experience-credence (SEC) categorization of products to develop theoretical hypotheses. Using data from 500 US e-retailers, this chapter contends that the ease to evaluate retail products online has a positive effect on sales volume of e-retail firms. This effect is the result of increased web traffic and decreased conversion rates, which describes the e-retail market behavior with firm-level variables.

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Effect of E-Retail Product Category on Performance

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