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The Study on the differences in terms of online consumers' brand reliance by product typologyand product familiarity

Abstract

This study intends to explore and explain the differences in terms of online consumers' brand reliance by product types and product familiarity and to derive strategic implications for online businesses. Based upon the previous research on brand dependence, online environment characteristics, including multi-sensory weakness and availability of attribute information, and consumer uncertainty, the conceptual model was developed; and the corresponding hypotheses were established and empirically tested. In empirical study, the experimental method was carried out in a computer lab connected to the Internet. The subjects for the experiment were university students who can use the Internet. For experience goods, perfume, clothes, and dress were adopted; and for search goods, computer, walkman and VTR. The hypotheses were tested through the covariance structure analysis using the AMOS 3.61 computer program. The reason of the difference of brand reliance is that the availability of product attribute information cannot reduce multi-sensory weakness in the case of experience goods. In turn, in the case of search goods and consumers with high product familiarity, online multi-sensory weakness is not considered important in the purchase decision and information provided online makes comparison among alternatives easier, which eventually reduces consumer uncertainty and therefore, brand reliance.

keywords
brand reliance, multi-sensory weakness, availability of information, uncertainty, product familiarity, product typology, online environment characteristics

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