How Information Changes Consumer Behavior and How Consumer Behavior Determines Corporate Strategy

@article{Clemons2008HowIC,
  title={How Information Changes Consumer Behavior and How Consumer Behavior Determines Corporate Strategy},
  author={Eric K. Clemons},
  journal={Journal of Management Information Systems},
  year={2008},
  volume={25},
  pages={13 - 40}
}
  • E. Clemons
  • Published 1 September 2008
  • Business, Computer Science
  • Journal of Management Information Systems
Information availability has increased consumers' informedness, the degree to which they know what is available in the marketplace, with precisely which attributes and at precisely what price. This informedness has altered the demand side of market behavior: customers now discount more heavily when comparable products are available from competitors and when products do not meet their wants, needs, cravings, and longings, but they no longer discount as heavily when purchasing unfamiliar products… Expand
View on Taylor & Francis
faculty.washington.edu
136 Citations
Highly Influential Citations
10
Background Citations
71
Methods Citations
8

136 Citations

Citation Type

Citation Type

Consumer Informedness and Firm Information Strategy
TLDR
The results suggest that firm information strategy should take into account consumers' characteristics, their past observed behaviors, and the impact of consumer informedness, and suggest that price informedness is more influential among consumers in the commodity segment. Expand
Of Information Systems School of Information Systems 2014 Consumer Informedness and Firm Information Strategy
Consumer informedness plays a critical role in determining consumer choice in the presence of information technology (IT) deployed by competing firms in the marketplace. Using data collected through… Expand
A Model of Product Design and Information Disclosure Investments
TLDR
Today's firms should view product design and investments to reduce buyer uncertainty as an integrated process, which is in turn heavily influenced by how much information buyers can obtain independently, for example, by reading other buyers' reviews or by accessing third party infomediaries. Expand
Carrying your long tail: Delighting your consumers and managing your operations
TLDR
Evidence from earlier recessions suggests that in an era of excess capacity and pressures on consumers to find the best possible prices, competing through resonance offerings may represent an important source of protected profits. Expand
Reducing Buyers' Uncertainty About Taste-Related Product Attributes
TLDR
It is shown that firms must consider the variance, but not the mean, of buyer reviews, to determine the need to invest in reducing consumer uncertainty about taste-related attributes. Expand
Carrying Your Long Tail: Hitting the Sweet Spots, Delighting Your Customers, and Controlling Your Costs
  • E. Clemons, P. Nunes
  • Economics, Computer Science
  • 2010 43rd Hawaii International Conference on System Sciences
  • 2010
TLDR
Evidence from earlier recessions suggests that competing through resonance offerings may represent an important source of protected profits, and yet, carrying a long tail and selling into sweet spots requires new skills, both for locating targets of opportunities and for controlling costs. Expand
Buying in: the influence of interactions at farmers’ markets
Many consumers are motivated to attend Farmers’ Markets (FMs) because of the opportunity to purchase fresh and local products. The subsequent interactions at FMs provide an important pathway for the… Expand
A Preliminary Test of the Resonance Marketing Hypothesis: Guidance for Future Research Assessing Multi-Attribute Preferences in Horizontal Competition
The Resonance Marketing hypothesis suggests that in an era of nearly perfect online information consumers will be able to know everything about products that interest them, including their exact… Expand
CONSUMER INFORMEDNESS AND HYPERDIFFERENTIATION: AN EMPIRICAL TEST OF THE TRADING DOWN AND TRADING OUT HYPOTHESES
Consumer informedness plays a critical role in determining consumer choice. Companies now use hyper- differentiation and resonance marketing strategies to benefit from the long-tail. We test the… Expand
Information Transparency in Business-to-consumer Markets: Concepts, Framework, and Research Agenda
The Internet has brought about significant changes in the availability of market information in many industries. E-commerce technologies provide sellers with opportunities to design electronic… Expand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 49 REFERENCES
Consumer informedness and diverse consumer purchasing behaviors: Traditional mass-market, trading down, and trading out into the long tail
TLDR
This paper offers a more complete explanation of changes in consumer behavior, based on consumers' new-found informedness, and an understanding of consumers' pursuit of products that truly meet their individual wants and needs, cravings and longings. Expand
Consumer informedness and diverse consumer purchasing behaviors: traditional mass-market, trading down, and trading out into the long tail
TLDR
In product categories where consumers exhibit extreme differences in preferences and where they also seek delight, such as the selection of new craft beers, the number of delighted reviewers and the strength of positive reviews are the best predictors of success. Expand
Hyper-differentiation strategies: delivering value, retaining profits
  • E. Clemons, B. Gu, R. Spitler
  • Economics, Computer Science
  • 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the
  • 2003
TLDR
Information makes it possible to track the changes in behavior, preferences, demands, and desires of your best customers and serve them with precision, accuracy, and cost-effectiveness that competitors will never be able to match. Expand
Segmentation, Differentiation, and Flexible Pricing: Experiences with Information Technology and Segment-Tailored Strategies
TLDR
Recent experience suggests that IT may enable firms to select from more finely tuned strategic options, and that it may require them to implement multiple strategies simultaneously, which will become increasingly crucial in industries with heterogeneous customers and with costs that vary widely across customers. Expand
Versioning Information Goods
One prominent feature of information goods is that they have large fixed costs of production, and small variable costs of reproduction. Cost-based pricing makes little sense in this context;… Expand
From Niches to Riches: Anatomy of the Long Tail
Dozens of markets of all types are in the early stages of a revolution as the Internet and related technologies vastly expand the variety of products that can be produced, promoted and purchased.… Expand
Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers
TLDR
The analysis indicates that the increased product variety of online bookstores enhanced consumer welfare by $731 million to $1.03 billion in the year 2000, which is between 7 and 10 times as large as the consumer welfare gain from increased competition and lower prices in this market. Expand
Reducing buyer search costs: implications for electronic marketplaces
Information systems can serve as intermediaries between the buyers and the sellers in a market creating an "electronic marketplace" that lowers the buyers' cost to acquire information about seller… Expand
Strategic Manipulation of Internet Opinion Forums: Implications for Consumers and Firms
TLDR
A theoretical analysis of the impact of manipulation of online forums on firm profits and consumer surplus suggests that as the amount of user-contributed online content increases, it is firms, and not consumers, that have most to gain from the development of such technologies. Expand
Mass Affluence: Seven New Rules of Marketing to Today's Consumer
Forget mass customization and microsegmentation. Winning in today's business world requires a return to an approach abandoned by marketing experts decades ago. Mass marketing is back, say Paul Nunes… Expand
...
1
2
3
4
5
...