Take a Chance on Me – Consumer Choice of Unfamiliar Online Retailers
(A2024-119523)

AUTHORS

Benjamin Schulte, IU International University of Applied Sciences; Sabrina Gottschalk, Bayes Business School, City, University of London; Aneesh Banerjee, Bayes Business School, City, University of London

ABSTRACT

This research examines consumers' decision-making process when choosing unfamiliar online retailers, particularly focusing on the role of retailer attributes such as shipping conditions, return policies, online reviews, familiarity, and trust signals. Using a Choice-Based Conjoint (CBC) experimental design across multiple studies, we find that factors related to purchasing friction, such as shipping fees and delivery time, and electronic Word-of-Mouth (eWOM) heavily influence consumer decisions. Low level familiarity with the retailer and return conditions showed a relatively lower influence. The studies offer insights into how various retailer attributes may be prioritized or traded-off against each other in consumer decision-making. Consequently, the results suggest strategies for new or less-known online retailers to attract consumers and improve their market performance on sales platforms such as price comparison sites or marketplaces.