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Abstract
The strategy of inviting online shoppers to negotiate product prices has been employed by numerous online sellers due to its benefits for buyers and sellers. Social media facilitates sharing information regarding such economic benefits among shoppers, thereby generating eWOM, which boosts online social commerce. Yet not all buyers choose to embrace sellers' offers to negotiate product price. In the current paper, we employ consumer culture theory and the elaboration likelihood model to theorize the effects of culture and involvement on consumer engagement in price negotiation. Two studies were designed to test the proposed conceptual framework. Based on eBay transaction data (N = 498), Study 1 supported the hypothesized positive main effects of collectivism and involvement on shoppers’ engagement in price negotiation. Study 2 demonstrated, in a controlled laboratory setting (N = 468), the moderating effect of eWOM on these relationships. When other buyers shared information regarding price negotiation, the positive effect of collectivism on negotiation was mitigated, and the effect of involvement was strengthened. These findings have significant theoretical, practical, and social implications.
Acknowledgments
The authors thank Yahel Bar-Shi and Chen Shreiber-Bezaleli for helping with the data collection.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes on contributors
Shalom Levy is a Senior Lecturer of Marketing at the Department of Economics and Business Administration, Ariel University, Israel. Shalom holds a Ph.D. from Bar-Ilan University. Prior to this, he worked as a media manager and head of planning and research in advertising companies. His work has been published in journals as Marketing Letters and International Journal of Advertising and Journal of Advertising Research. Shalom Levy can be contacted at: [email protected].
Yaniv Gvili is an assistant professor of marketing at the School of Business Administration of Ono Academic College, Israel. Yaniv received his Ph.D. from Temple University. Prior to his academic career, he worked as an analyst and director of research in a global communications network. Yaniv's work has been published in leading journals including Journal of Advertising Research, International Journal of Advertising, European Journal of marketing, and Psychology & Marketing. Yaniv’s research interests include word of mouth, social networks, and new media marketing. Email: [email protected].