AbstractResearch Purpose: It is widely accepted that website design quality is a major factor in determining consumers’ online behaviour (Al-Qeisi et al, 2016; Flavián et al, 2006; Zhou et al, 2009) with research to date... [ view full abstract ]
Abstract
Research Purpose: It is widely accepted that website design quality is a major factor in determining consumers’ online behaviour (Al-Qeisi et al, 2016; Flavián et al, 2006; Zhou et al, 2009) with research to date generally focusing on how usability and aesthetics predict user outcomes. This study takes an alternate view and borrowing from theories of behavioural economics (Kahneman & Tversky, 1974; Kahneman, 2003) develops a model to understand factors that drive growth for online vendors.
Design/methodology/approach: Unlike previous research which has tended to focus on convenience samples and simulated research contexts, this study conducted multiple field experiments using large-scale transactional data from real-life eCommerce websites and evaluates whether employing framing (Thaler, Sunstein, & Balz, 2014), defaults (Hun, Vosgerau, & Morewedge, 2014), anchoring (Epley & Gilovich, 2006; Furnham & Boo, 2011) and social proof (Cialdini, 2007; Kwahk & Ge, 2012) impact on consumers’ purchase behaviour.
Findings: The findings of the experiments demonstrate general support for the positive impact behavioural economics constructs can have on transactional growth. Specifically, the results of the anchoring experiment corroborate the earlier assertion of Furnham and Boo (2011) who propose that anchoring can have a strong impact on human behaviour. In this experiment, anchoring was seen to significantly increase average transaction spend regardless of any other variables at play.
Research limitations/implications: As this study is limited to one eCommerce website, further research is required in order to determine whether the findings extrapolate to other contexts.
Practical implications: From the study findings we recommend how the findings can be used by eCommerce sites to increase revenue and maximise profitability.
Originality/value: Previous research in this area is largely limited to artificially simulated designs whereas the unique field-experiment design of this study provides compelling insight into how actual customers respond to behavioural economics tactics and stimuli.
