Clicks to Conversion: The Impact of Product and Price Information

57 Pages Posted: 30 Nov 2010 Last revised: 7 Sep 2014

Vandana Ramachandran

University of Utah - Department of Operations and Information Systems

Siva Viswanathan

University of Maryland - Robert H. Smith School of Business

Henry C. Lucas

University of Maryland - Robert H. Smith School of Business

Date Written: November 15, 2010

Abstract

This study seeks to examine how different types of information – product-related and price-related information provided by retailers – impact purchase-related outcomes for consumers belonging to different states of shopping. Using mixture-modeling techniques on clickstream data obtained from a large online durable goods retailer, we find that a three-state model comprised of directed shoppers, deliberating researchers and browsers, best describes the latent differences across customers. In examining the impacts of information on purchase outcomes, we find that product and price-related information impacts consumers in these three shopping states differently. While product information highlighting features of product alternatives in a category has the strongest impact on deliberating researchers, specific price information related to category-level discounts increases the likelihood of purchase for both directed shoppers as well as browsers. Price information relating to site-wide free shipping has a positive impact on purchase for all consumers. Surprisingly, category-level discounts have a negative impact on deliberating researchers, while rich product information hampers the purchase process of directed shoppers. We discuss the managerial implications of our findings and the role of clickstream analytics in designing dynamic targeting and information provisioning strategies for online retailers.

Keywords: online shopping, product information, price information, states of shopping, clickstream

JEL Classification: C1, D8, M2

Suggested Citation

Ramachandran, Vandana and Viswanathan, Siva and Lucas, Henry C., Clicks to Conversion: The Impact of Product and Price Information (November 15, 2010). Robert H. Smith School Research Paper No. RHS-06-041. Available at SSRN: https://ssrn.com/abstract=1717047 or http://dx.doi.org/10.2139/ssrn.1717047

Vandana Ramachandran (Contact Author)

University of Utah - Department of Operations and Information Systems ( email )

1645 E Campus Center Drive
University of Utah
Salt Lake City, UT 84112
United States

Siva Viswanathan

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

Henry C. Lucas

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

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