Quality Certificates Alleviate Consumer Aversion to Sponsored Search Advertising

27 Pages Posted: 19 Jul 2022

See all articles by Xiang Hui

Xiang Hui

Washington University in St. Louis - John M. Olin Business School

Meng Liu

Washington University in St. Louis

Date Written: July 7, 2022

Abstract

We study consumer response towards sponsored search advertising and how to improve advertising performance on a large e-commerce platform. Our research design is based on a field experiment which randomizes the salience of ad disclosure to consumers, and a natural experiment which eradicates a listing-level quality certificate for all listings because of a system glitch. Results suggest that consumers dislike search advertising in our setting, but quality certificates mitigate this aversion and increase advertising sales.

Keywords: sponsored search advertising, quality certificates, e-commerce

JEL Classification: M37, D82

Suggested Citation

Hui, Xiang and Liu, Meng, Quality Certificates Alleviate Consumer Aversion to Sponsored Search Advertising (July 7, 2022). Available at SSRN: https://ssrn.com/abstract=4155772 or http://dx.doi.org/10.2139/ssrn.4155772

Xiang Hui (Contact Author)

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States

Meng Liu

Washington University in St. Louis ( email )

One Brookings Drive
Campus Box 1208
Saint Louis, MO MO 63130-4899
United States

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