[논문]Identifying the Effect of Product Types in the Relationships Between Product Discounts and Consumer Distrust levels in China's Online Social Commerce Market at the Era of Big Data

Li, Lin; Rhee, Cheul; Moon, Junghoon

doi:10.3837/tiis.2018.05.016

Identifying the Effect of Product Types in the Relationships Between Product Discounts and Consumer Distrust levels in China's Online Social Commerce Market at the Era of Big Data 원문보기

KSII Transactions on internet and information systems : TIIS, v.12 no.5, 2018년, pp.2194 - 2210

Li, Lin (Department of Management, Kyung Hee University) , Rhee, Cheul (Department of e-Business, Ajou University) , Moon, Junghoon (Program in Regional Information, Seoul National University)

Abstract ▼ AI-Helper

In the era of big data, consumers capture more and more economic surplus yet the seed of distrust also grows with the fast-spreading of social commerce, this paper began with the idea that product types may determine the degree of consumers' distrust even when identical discounts are offered for those products on Chinese social commerce websites. We also attempted to determine if distrust negatively affected consumers' purchase attitudes. 20 representative products that are commonly sold on social commerce websites in China were chosen to examine the relationships among product types, discount rates, distrust levels, and purchase attitudes. Inductive interview was used to collect the data as well as consumers' perceptions of the relationships. Data analysis results suggested that consumers like deep discounts, but their distrust levels increase along with the discount rates, however, the levels of increasing distrust vary according to product types. High, medium, and low discount rate categorizations were made and three propositions were suggested. This paper will contribute to the body of knowledge on online social commerce market and provide valuable implications for e-retailers and general consumers in online social commerce websites in China.

주제어

AI 본문요약
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문제 정의

As to the interview design, the research purpose of the interview is to find out how various types of products change the relationship between discount rates and distrust levels. For generalization of the research results, the interview page excluded all the design elements, but the participants were well aware that the items had been chosen from social commerce websites.
Due to the high variation of the quality of heterogeneous products, people intend to consider highly discounted heterogeneous products as low quality, accordingly medium level discount rates might have more positive influence on consumers’ purchase intentions as this paper advocated.
Through this backward, inductive method, this research hopes to find the product type classification that suits the limited setting of this research. That is to say, the research purpose of this paper is to find the product characteristics that cause the difference in the different distrust levels, since the tradtional product type classification methods cannot explain the distrust differences that occurred in Chinese social commerce scenario.
The reason to choose Chinese social market to study is for the purpose of controlling the cultural contingent effect that might be salient if multiple countries are chosen to study, thus, this study focused on Chinese social commerce market in particular. And inductive interview was used as research method since there is no existing theory to support empirical research even though this research has an intention to.
Especially, even in the case of the same price discount, some products are chosen and some are not, or some services are chosen while some products are not. Therefore, this paper focuses specifically on whether this phenomenon is related to the product type, which cannot be explained by previous product classification methodologies in Chinese social commerce case.
This research believes that the peer communication has dramatically changed how consumers’ purchase attitudes are formed and if distrust emerges as a problem, it can tremendously impair the purchase attitude and result in the wrong purchase action or misleading information about purchase, and cause financial lost to individuals.
Even though fixed-price group-buying has been studied on the top group-buying website in China [15], social commerce infrastructure and strategy is the research focus for most of the extant studies [16]. This research focuses on how the product types influence the relationships between discount rates and distrust levels, which has rarely been studied by previous researches.
To the best of our knowledge, this study is one of the first attempts to investigate how product types influence the relationships between discount rates and distrust levels in the contexts of social commerce in China. Practically, this paper intends to provide social commerce retailers and practitioners regarding how to better set price strategies based on various product types.

가설 설정

The research question of this paper is “will the relationships between discount rates and distrusts change based on product types?

제안 방법

Also previous researchers on the analysis of the problem were limited to simply using traditional business theories as well [6]. As a result, instead of beginning with sorting out the product types, this research started with extracting 20 most popular items in social commerce websites in China, and to determine the price discount rate, distrust and purchase intention of each product. Through this backward, inductive method, this research hopes to find the product type classification that suits the limited setting of this research.
The first question is designed to collect information about the distrust increasing points for different types of products, and the second question is developed to find out the reasons for the various distrust levels. If the discount rates vary dramatically among the chosen products, this study is believed to provide evidence for validating the research framework, shown at Fig. 1, for a larger and empirical study [23].
Research methodology adopted by this qualitative study is inductive interview, due to lack of existing theory to support empirical study. The inductive interview was employed to collect data of the distrust increasing points of the 20 chosen products of this research, and the reasons for the various distrust levels were extracted as well.
Research methodology adopted by this qualitative study is inductive interview, due to lack of existing theory to support empirical study. The inductive interview was employed to collect data of the distrust increasing points of the 20 chosen products of this research, and the reasons for the various distrust levels were extracted as well.

대상 데이터

For generalization of the research results, the interview page excluded all the design elements, but the participants were well aware that the items had been chosen from social commerce websites. 20 products were included for that they were among the best selling products in Chinese online social commerce websites, which are: paper, durian, staples, blueberries, gasoline, steak, travel package, TV stand, franchised buffet, movie ticket, car washing, investment golden bar, yoga mattress, gym exercise coupon, franchised business hotel room, shoes, strawberry picking, ice-cream, picture taking and foot massage. These products are very easy to be understood by interviewees without much extra descriptions, and also are related to their experience of shopping on social commerce websites.
Seventy face-to-face inductive interviews were conducted among Chinese individuals aging from 18 to 30 years old, who are the main shopping force of social commerce websites in China, thus make them the research subject. Participants were from various cities in China, mainly from Beijing, Shanghai and Guangzhou, these cities are metropolis of China, and these cities have the most alive social commerce website purchase power and the participants are better aware of the contents of social commerce, thus they participated the interview with less difficulties to understand and proceed.

이론/모형

The process is described as data reduction, data display, and conclusion making and verification [25]. The coding process was developed through the constant comparative method [26] in order to find codes and make categories for distrust reasons. First, the interview data was analyzed based on chucks of contents, or conceptual unites and also provided with codes, which is similar to key words.

성능/효과

In conclusion, due to the special characteristics of Chinese e-commerce market and social commerce market, this paper focused on the Chinese social commerce market, and found out that the relationships between product discounts and distrust levels are influenced by product types, which is considered a key contribution of this research. Inductive interview methodology was employed and three propositions were made based on our main findings regarding various product types.

후속연구

As a result, instead of beginning with sorting out the product types, this research started with extracting 20 most popular items in social commerce websites in China, and to determine the price discount rate, distrust and purchase intention of each product. Through this backward, inductive method, this research hopes to find the product type classification that suits the limited setting of this research. That is to say, the research purpose of this paper is to find the product characteristics that cause the difference in the different distrust levels, since the tradtional product type classification methods cannot explain the distrust differences that occurred in Chinese social commerce scenario.

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