Start Date

10-12-2017 12:00 AM

Description

Drawing from Social Impact Theory (SIT) and prior research on the processing of social information, this research develops and tests hypotheses on two alternative causal pathways to explain how the disclosure of visitor traffic on websites affects shoppers’ willingness to pay for offerings. The results of a multiple, serial mediation analysis show that high levels of visitor traffic impact willingness to pay (1) through popularity, quality, and greater deal attractiveness (social proof route), and (2) through increased crowding, competition, and stress (social pressure route). In addition, the results show that when shoppers perceive that other visitors simultaneously shop in the store (co-presence), information on visitor traffic increases willingness to pay via both routes. However, when shoppers perceive that other visitors previously shopped at the store (past presence), visitor traffic still impacts willingness to pay, but only through the social proof route.

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Dec 10th, 12:00 AM

Proof or Pressure? How Visitor Traffic Disclosure Impacts Online Shopper Behavior

Drawing from Social Impact Theory (SIT) and prior research on the processing of social information, this research develops and tests hypotheses on two alternative causal pathways to explain how the disclosure of visitor traffic on websites affects shoppers’ willingness to pay for offerings. The results of a multiple, serial mediation analysis show that high levels of visitor traffic impact willingness to pay (1) through popularity, quality, and greater deal attractiveness (social proof route), and (2) through increased crowding, competition, and stress (social pressure route). In addition, the results show that when shoppers perceive that other visitors simultaneously shop in the store (co-presence), information on visitor traffic increases willingness to pay via both routes. However, when shoppers perceive that other visitors previously shopped at the store (past presence), visitor traffic still impacts willingness to pay, but only through the social proof route.