Is Online Multiple-Stores Cooperative Promotion Better than Single-Store Promotion? Misprediction from Evaluation Mode

Yang L, Huang Y, Ho Y-Chun(Chad), Lin Z, IsOnline Multiple-Stores Cooperative Promotion Better Than Single-Store Promotion?Misprediction from Evaluation Mode,Information and amp; Management(2019), DOI: 10.1016/j.im.2019.02.003

60 Pages Posted: 21 Mar 2018 Last revised: 15 Feb 2019

See all articles by Lu Yang

Lu Yang

Tsinghua University - School of Economics & Management

Yunhui Huang

Nanjing University - School of Business

Yi-Chun (Chad) Ho

George Washington University - School of Business

Zhijie Lin

Tsinghua University

Date Written: February 8, 2019

Abstract

Inspired by the evaluation mode theory, we show online vendors mispredict consumers' responses to different types of sales displays. While vendors predict that consumers evaluate a featured product more positively in a cooperative sales promotion (CSP; i.e., multiple stores promoting synchronously) than in an independent sales promotion (ISP; i.e., a single store promoting independently), consumers actually do the opposite. The reason is that vendors compare CSP with ISP and are able to evaluate depending on perceived acquisition utility; consumers, however, see either CSP or ISP, resulting in difficulty in accessing acquisition utility. Thus, they evaluate according to perceived transaction utility.

Keywords: cooperative sales promotion; independent sales promotion; evaluation mode; product evaluation; misprediction; acquisition-transaction utility

Suggested Citation

Yang, Lu and Huang, Yunhui and Ho, Yi-Chun (Chad) and Lin, Zhijie, Is Online Multiple-Stores Cooperative Promotion Better than Single-Store Promotion? Misprediction from Evaluation Mode (February 8, 2019). Yang L, Huang Y, Ho Y-Chun(Chad), Lin Z, IsOnline Multiple-Stores Cooperative Promotion Better Than Single-Store Promotion?Misprediction from Evaluation Mode,Information and amp; Management(2019), DOI: 10.1016/j.im.2019.02.003. Available at SSRN: https://ssrn.com/abstract=3142407 or http://dx.doi.org/10.2139/ssrn.3142407

Lu Yang

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

Yunhui Huang (Contact Author)

Nanjing University - School of Business ( email )

22 Hankou Road
Nanjing, Jiangsu 210093 210093
China

Yi-Chun (Chad) Ho

George Washington University - School of Business ( email )

Washington, DC 20052
United States

HOME PAGE: http://business.gwu.edu/profiles/yi-chun-chad-ho/

Zhijie Lin

Tsinghua University ( email )

Haidian District
Beijing, Beijing 100084
China

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