Abstract
E-commerce in India is on the rise. Leading e-commerce sites like Flipkart and Amazon are offering newer avenues for advertisers to advertise their products. This paper develops and tests a theory to help marketers in displaying suitable product (hedonic/utilitarian) ads that could motivate the customer to make an additional purchase (hedonic/utilitarian) on the ecommerce platform. Multiple studies have been conducted as part of the research program. An initial study was conducted with senior executives in ecommerce companies to identify popular categories. Two additional exploratory studies were conducted a) to identify and assess customer perception on relative hedonic (utilitarian) value of products and b) to assess customer perception on the hedonic/utilitarian value of the chosen products. 2x2 experimental design with identified product categories were then conducted with both moderation and mediation. The findings of the pilot support the research proposition – having already purchased a hedonic product, display advertisements will have a stronger positive effect on the purchase likelihood of hedonic rather than utilitarian products, for additional purchases in the same category or alternate category.
Recommended Citation
Jagasia, Jyoti; Thakur, Rakhi; and Kamath, Renuka, "Influence of Display Ads on Additional Product Purchase" (2019). AMCIS 2019 Proceedings. 11.
https://aisel.aisnet.org/amcis2019/treo/treos/11
Influence of Display Ads on Additional Product Purchase
E-commerce in India is on the rise. Leading e-commerce sites like Flipkart and Amazon are offering newer avenues for advertisers to advertise their products. This paper develops and tests a theory to help marketers in displaying suitable product (hedonic/utilitarian) ads that could motivate the customer to make an additional purchase (hedonic/utilitarian) on the ecommerce platform. Multiple studies have been conducted as part of the research program. An initial study was conducted with senior executives in ecommerce companies to identify popular categories. Two additional exploratory studies were conducted a) to identify and assess customer perception on relative hedonic (utilitarian) value of products and b) to assess customer perception on the hedonic/utilitarian value of the chosen products. 2x2 experimental design with identified product categories were then conducted with both moderation and mediation. The findings of the pilot support the research proposition – having already purchased a hedonic product, display advertisements will have a stronger positive effect on the purchase likelihood of hedonic rather than utilitarian products, for additional purchases in the same category or alternate category.