Popularity Sign Paradox: The Hidden Pitfalls

Dr. Arezou Ghiassaleh together with Prof. Bruno Kocher, and Prof. Sandor Czellar have conducted extensive experimental research on the caveats behind the popularity signs used in online retail environments.

Popularity signs (e.g., “best seller”, “top rated”) are frequently employed by online retailers to help consumers in their purchase decisions. Whereas extant research focused mostly on the positive aspects of such a strategy, this research demonstrate that it can also have adverse effects on consumer post-choice behavior depending on consumer regulatory orientations. Across seven studies carried out in the lab with incentivized choices and in the field, the authors demonstrate that commonly used popularity signs such as “best seller”, can increase feelings of uncertainty, decrease choice commitment, and affect subsequent product evaluations and reviews among consumers with prevention (vs. promotion) orientation.

This research provides clear insights for managers. online retailers with access to data about their customers can apply findings of this research by adjusting the provision of popularity signs for certain customers. Online retailers can measure the chronic regulatory orientation of their customers by asking several questions when consumers create their profile, or they can track consumers' information search behavior before making a purchase to identify their regulatory orientation and tailor the popularity sign strategies accordingly.

View the full article in International Journal of Research in Marketing

https://www.sciencedirect.com/science/article/abs/pii/S0167811620300379