online consumer psychology covering topics like trust, persuasion, satisfaction and loyalty.

1. AARHUS
UNIVERSITY
ONLINE CONSUMER PSYCHOLOGY
Jacob L. Orquin, Ph.D.
Department of Business Administration
Aarhus University
ASB AU
MAPP

2. AARHUS
UNIVERSITY
LEARNING OBJECTIVES
Understand how to:
Create trust
Persuade customers
Create loyalty
ASB AU
MAPP

3. AARHUS
UNIVERSITY
MATCHING GOALS
Change users or change website?
ASB AU
MAPP

4. AARHUS
UNIVERSITY
TRUST
Why is trust important to online marketing?
Can we imagine economic transactions without trust?
How do they take place?
ASB AU
MAPP

5. AARHUS
UNIVERSITY
TRUST AND ECONOMIC EXCHANGES
So what’s the value of trust in e-commerce?
• Low degrees of trust are detrimental to economic exchanges
• Increased levels of trust are associated with a higher conversion rate
• Increased levels of trust are associated with satisfaction and loyalty
ASB AU
MAPP

6. AARHUS
UNIVERSITY
TRUST AND ECONOMIC GROWTH
Denmark is not part of the study, but is probably somewhere near to
Norway (NOR)
ASB AU
MAPP

7. AARHUS
UNIVERSITY
INTERPERSONAL TRUST ACROSS NATIONS
Denmark is not part of this graph but it’s up here!
ASB AU
MAPP

8. AARHUS
UNIVERSITY
TRUST
A (very) simple model of trust (Sultan et al 2002)
ASB AU
MAPP

9. AARHUS
UNIVERSITY
TRUST SEALS
Trust seals has been used to incease consumer confidence in e-commerce
since the earliest days of online shopping but the documented effect is
quite modest.
According to Sultan et al. (2002) trust seals only account for 0.2 % of
explained variance in trust!
ASB AU
MAPP

10. AARHUS
UNIVERSITY
TRUST SEALS
Secific e-commece vendors claim to have improven conversion rates for
new visitors with up til 7 % using trust seals.
Screenshot from billigvoks.dk
ASB AU
MAPP

11. AARHUS
UNIVERSITY
FACTORS PREDICTING TRUST
ASB AU
MAPP

12. AARHUS
UNIVERSITY
PREDICTORS (CONT)
Percent of respondents who self
motivatedly commented on
certain website characteristics
influencing website credibility.
(Fogg et al. 2003)
ASB AU
MAPP

13. AARHUS
UNIVERSITY
PERSUASION
ASB AU
MAPP

14. AARHUS
UNIVERSITY
ELABORATION LIKELIHOOD MODEL
ASB AU
MAPP

15. AARHUS
UNIVERSITY
PERSUASION STRATEGIES
Cialdini identifies 6 compliance strategies
• Reciprocity
• Commitment and Consistency
• Social Proof
• Authority
• Liking
• Scarcity
ASB AU
MAPP

16. AARHUS
UNIVERSITY
RECIPROCITY
ASB AU
MAPP

17. AARHUS
UNIVERSITY
COMMITMENT AND CONSISTENCY
ASB AU
MAPP

18. AARHUS
UNIVERSITY
SOCIAL PROOF
ASB AU
MAPP

19. AARHUS
UNIVERSITY
AUTHORITY
ASB AU
MAPP

20. AARHUS
UNIVERSITY
LIKING
ASB AU
MAPP

21. AARHUS
UNIVERSITY
SCARCITY
ASB AU
MAPP

22. AARHUS
UNIVERSITY
LOYALTY
Why is loyalty important to online marketing?
What difference does it make if have to attract new customer for every
sale we make?
ASB AU
MAPP

23. AARHUS
UNIVERSITY
RETENTION IS (VERY) PROFITABLE!
A 10 % change in repeat
customer conversion leads to a
10 % change in net present value
Agrawal et al (2001) E-
performance
ASB AU
MAPP

24. AARHUS
UNIVERSITY
LOYALTY AND SATISFACTION
The apostle model
ASB AU
MAPP

25. AARHUS
UNIVERSITY
WOM AND SATISFACTION
There is a U-shaped relation between satisfaction and WOM
ASB AU
MAPP

26. AARHUS
UNIVERSITY
WORD OF MOUTH
WOM: contributes with 30 % of customers and has no specific budget
allocation!
ASB AU
MAPP

27. AARHUS
UNIVERSITY
SO WHAT’S THE POINT?
Customer satisfaction is a strong predictor both of WOM and
loyalty.
Among online marketing initiatives WOM and loyalty have
the highest ROI.
ASB AU
MAPP

28. AARHUS
UNIVERSITY
WOM AND LOYALTY
Carpenter (2005) Consumer shopping value, satisfaction, and loyalty for
retail apparel brands
ASB AU
MAPP

29. AARHUS
UNIVERSITY
ANTECEDENTS TO E-SATISFACTION
The Szymanski & Hise (2000) model was tested and re-examined in 2004.
ASB AU
MAPP

30. AARHUS
UNIVERSITY
CORRELATIONS WITH CONVENIENCE
Results from Szymanski & Hise (2000) seem to focus on general aspects of
e-commerce:
ASB AU
MAPP

31. AARHUS
UNIVERSITY
E-SATISFACTION AFFECTS RETENTION AND
CONVERSION
Bansal et al (2004) Relating e-satisfaction to behavioral outcomes
ASB AU
MAPP

32. AARHUS
UNIVERSITY
ANTECEDENTS TO E-SATISFACTION
Results from Bansal et al (2004) Relating e-satisfaction to behavioral
outcomes
ASB AU
MAPP

33. AARHUS
UNIVERSITY
MODERATORS OF E-SATISFACTION
Yes, e-satisfaction does affect e-loyalty …
ASB AU
MAPP

34. AARHUS
UNIVERSITY
ONLINE VS. OFFLINE
Satisfaction has an even stronger impact on loyalty online than offline!
ASB AU
MAPP

35. AARHUS
UNIVERSITY
FACTORS AFFECTING LOYALTY
Borrowed from Reibstein (2002).
ASB AU
MAPP

36. AARHUS
UNIVERSITY
TOUCH POINT ANALYSIS
Mapping customer touch points: satisfaction can be replaced with
performance for fast benchmarking
ASB AU
MAPP

37. AARHUS
UNIVERSITY
GATHER YOUR DATA
Gathering questionnaire data is practically free. What matters is integrating
the data sources
ASB AU
MAPP

38. AARHUS
UNIVERSITY
SURVEY SOCIAL MEDIA
Get direct input on what you have
done right and wrong!
Complaint about support center
Complaint about broad band service
Complaint about support center
Ok delivery but bad support
ASB AU
MAPP

39. AARHUS
UNIVERSITY
OTHER WEB 2.0 TOOLS
What are they talking about and how much are they talking?
Social media monitoring: Buzzmetrics, Cymphony, Google blogsearch,
Blogpulse.com
Facebook Lexicon Google blogsearch Blogpulse.com
ASB AU
MAPP

40. AARHUS
UNIVERSITY
INTEGRATE THE DATA!
Measure and integrate data sources. There are no universal truths so
always check what works on your website.
E-Satisfaction web analytics pipeline metrics
Is there any correlation between the data?
ASB AU
MAPP

41. AARHUS
UNIVERSITY
DEVELOPING E-SATISFACTION
Setting expectations: do you deliver what your market communication
promised?
Website characteristics: how is your websites’s ease of use,
content/information, price, and product selection doing?
Customer service: check your support, delivery, and complaints.
e-CRM applications: there are no killer apps! Feinberg & Kadam (2002)
ASB AU
MAPP

42. AARHUS
UNIVERSITY
CONTACT
Jacob L Orquin, Ph.D.
Department of Business Administration
Aarhus University
E-mail: jalo@asb.dk
Check out my company:
www.userpilot.dk
ASB AU
MAPP