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To cite this article: Rainer Olbrich & Christian Holsing (2011) Modeling Consumer Purchasing
Behavior in Social Shopping Communities with Clickstream Data, International Journal of Electronic
Commerce, 16:2, 15-40, DOI: 10.2753/JEC1086-4415160202
ABSTRACT: Social shopping communities (SSCs) evolve from a linkage of social network-
ing and online shopping. Apart from direct shopping features in shopbots (e.g., search
fields), SSCs additionally offer user-generated social shopping features. These include
recommendation lists, ratings, styles (i.e., assortments arranged by users), tags, and user
profiles. Purchases can be made by following a link to a participating online shop (“click-
out”). SSCs are experiencing high growth rates in consumer popularity (e.g., Polyvore
attracts more than 6 million unique visitors per month). Thus, this business model has
received considerable venture capital in recent years. By analyzing clickstream data, we
investigate which factors, especially social shopping features, are significant for predicting
purchasing behavior within SSCs. Our logit model includes about 2.73 million visiting
sessions and shows that social shopping features exert a significant impact, both positive
and negative. Tags and high ratings have a positive impact on a click-out. In contrast,
the more lists and styles used, the less likely the user is to make a click-out. Yet, lists and
styles seem to enhance site stickiness and browsing. Moreover, the more direct shopping
features that are used, the less likely the user is to conduct a click-out. Increasing trans-
action costs and information overload could be potential reasons. We also found that
community members are more likely to make a click-out than ordinary users. This implies
that community members are more profitable.
KEY WORDS AND PHRASES: Clickstream data, online consumer purchasing behavior,
social shopping, user-generated content, virtual community.
The authors thank an anonymous collaborating company for providing the click-
stream data used in this article. Furthermore, the authors thank SAS Institute
Germany for providing SAS Enterprise Miner™ Software. Finally, the authors are
especially grateful to two anonymous IJEC reviewers for their helpful and insightful
comments.
International Journal of Electronic Commerce / Winter 2011–12, Vol. 16, No. 2, pp. 15–40.
Copyright © 2012 M.E. Sharpe, Inc. All rights reserved.
1086-4415/2012 $9.50 + 0.00.
DOI 10.2753/JEC1086-4415160202
16 Olbrich and Holsing
channels, such as online shops and shopbots, SSCs additionally offer user-
generated social shopping features, as well as potential interaction, so as to
initiate or simplify purchase decisions. These features include user-provided
ratings, recommendation lists, tags, and user profiles. User-generated collages,
called “styles,” are an especially popular sharing tool. A style is an assortment
of products arranged by a user, all of which normally relate to a particular
theme and can therefore enhance browsing. For example, the members of
Polyvore, an SSC focusing on fashion, have created more than 20 million styles
and continue to create more than 30,000 styles daily [65]. Thus, some brands
already use styles as an innovative marketing tool. For example, marketers
conduct a contest to increase brand awareness (e.g., Nike [66] or the apparel
brand Coach [67]). Figure 1 depicts a style of Coach’s contest themed “How
will you sparkle this season?” on Polyvore, in which consumers can create a
style with some products by Coach [67]. This style, which is modeled on the
famous actress named Blake Lively, was created by the user “krivonja” and
generated 8,730 views and 535 “likes” from other members. Overall, Coach
received 3,692 styles within one week, consisting of 103,379 likes, 13,006 com-
ments, and 204,656 page views overall [26]. Therefore, this not only led to
high visibility on the SSC itself but also increased brand and shop awareness
at decentralized places, such as social media, for example, when consumers
embedded this content on Facebook (see Figure 1, right-hand side). Further-
more, products can be searched with direct shopping features (e.g., search field
and filter mechanisms, product-detail sites offering detailed information), and
International journal of electronic commerce 17
Direct shopping Filter Mechanisms Filter mechanisms for brand, category, gender, price, sales, shop
Search Field Field in which a visitor can enter search keywords
Social shopping List User-generated list which contains various different products
Profile User profile for publishing personal information and shopping
preferences
Rating Product User-generated average rating for products
Rating Shop User-generated average rating for shops
Style User-generated collage containing several products (assortment)
Tag User-generated tags to products and shops
Transactional Click-out Click on a link to a participating online shop (place of actual
purchase) after visiting a product-detail site
interest to researchers and Web site managers. In general, many factors can
influence behavior, including consumer involvement [60, 61], Web site design
and content [17], and both product and consumer characteristics [55]. The
following is a look at factors affecting search and purchasing behavior with
respect to SSCs and our main conversion objective of click-out. Due to data
limitations, we exclude some factors (e.g., demographic characteristics) and
focus on the following factors: involvement, visit occasion, transaction costs,
and information overload.
In the literature, consumer involvement—that is, perceived personal rel-
evance of an object [33]—is identified as an important factor affecting informa-
tion processing during searching and purchasing [47, 84]. In online settings,
involvement can be measured, for example, by the view time and number of
products in the purchasing process [20]. View time is an important performance
metric, but the research on factors affecting view time is quite limited [8, 17].
Padmanabhan et al. [59] introduced the view time visitors spent at a Web site
during a visit session. The view time seems to be significant in their modeling
approach and positively correlated with a potential purchase. Therefore, we
expect a positive correlation between the view time and a click-out. Thus,
Hypothesis 1: The longer the view time, the greater the likelihood of a click-out.
Many researchers have found that the occasion of a visit—that is, the search
motivation—is another important factor affecting purchasing behavior. For
example, Janiszewski [32] classified consumer search behavior into goal-
directed and exploratory search. Goal-directed searchers have a specific or
planned purchase in mind. Therefore, the search patterns of these consumers
focus on making a purchase decision [32]. By contrast, exploratory search
is less focused and no purchase is planned. In this context, Moe [47] used
the content of the pages viewed to make distinctions between the purchase
likelihood of consumers. She found that users can be classified by four types
of browsing behavior: directed buying, search and deliberation, hedonic
browsing, and knowledge building. With respect to our study, the cluster of
hedonic browsing is of particular interest. These users seek new stimuli, thus
enhancing impulse buying. UGC may serve as such a stimulus. Generally, we
expect a high average view time per page to be characteristic of hedonic users
who like browsing, for example, for relaxation purposes or as a moment-by-
moment activity [83]. In contrast, we hypothesize that goal-directed users have
a relatively low average view time per page because they are more frequent
shoppers, visit the SSC regularly, and thus benefit from learning effects [34].
Accordingly, they are more likely to conduct a click-out. Thus,
Hypothesis 2: The longer the average view time per page, the lower the likeli-
hood of a click-out.
Hypothesis 3: The more frequently product-detail sites are visited, the lower
the likelihood of a click-out.
Hypothesis 4: The longer the average view time per product-detail site, the
greater the likelihood of a click-out.
Previous research has shown that the use of search engines and shopbots
can lower transaction costs [5, 41, 74]. These costs refer to transaction-related
activities [85] such as searching for information, negotiating, and ordering.
Transaction costs play an important role in searching and purchasing because
consumers generally choose transactions that minimize their transaction costs
[40, 69]. With regard to SSCs, direct shopping mechanisms could ease informa-
tion processing and increase search efficiency [33]. Specifically, direct buyers or
searchers use these features to access the required information quickly. Because
the search for information yields benefits, but also causes costs, consumers
will not search endlessly for information [77]. If several filtering stages are
needed to find the right product, transaction costs rise, that is, high informa-
tion costs measured in time. Therefore, high transaction costs could lead to a
termination of the purchasing process. In this way, user purchasing behavior
is rational, involving time constraints and cost-benefit trade-offs [8].
Moreover, although the Web is regarded by many researchers as useful
in searching and reducing transaction costs [1, 5, 74, 76], it is often argued
that the Web and the vast amount of information it contains can also lead to
information overload [13, 77]. Despite the high use of filtering mechanisms, it
remains possible that consumers do not find the right product or are confronted
with too much information and thus abandon the session through confusion
or frustration [13, 36].
Furthermore, the goal of consumers may be to acquire information during
their prepurchase deliberations [47, 81], with the actual purchase planned
for the next visit. This could be a reason for the high usage of direct shop-
ping features. This assumption has also been confirmed indirectly by studies
demonstrating that users who click relatively infrequently search in a very
goal-oriented manner and purchase relatively frequently [61].
In summary, we expect a high usage of direct shopping features to lower
the likelihood of a click-out. In our study we analyze the following direct
shopping features: (a) brand, (b) category, (c) search field, (d) gender, (e) price,
(f) sales, and (g) shop. Thus,
Hypothesis 5a–g: The more frequently each direct shopping feature (a–g) is
used, the lower the likelihood of a click-out.
In addition, we assume that a high usage of the home page site could also
indicate information overload. The home page could serve as an orientation in
situations of information overload, as well as the starting point for a restart of
22 Olbrich and Holsing
Hypothesis 6: The more frequently the home page is visited, the lower the
likelihood of a click-out.
Since the Internet provides many opportunities for creating and sharing UGC,
it has stimulated research in the field of eWOM communication [8]. Despite
the high value of UGC and eWOM within the purchase-decision process,
their impact has only recently become the subject of research [15, 18, 19, 24,
79, 82]. In particular, there are only a few studies on the influence of UGC on
performance measures [23]. Analysis of an SSC is especially well suited to fill-
ing this research gap. All the means of interpersonal information transmission
through social shopping features, which in fact are UGC, can be regarded as
a form of eWOM [60].
A large proportion of existing studies in this area have investigated user-
provided ratings and reviews [18, 24, 42]. Generally, the sharing of reviews
and ratings of products can increase trust, thus reducing perceived risk when
purchasing online [22]. For example, Chevalier and Mayzlin find that average
star ratings can exert a positive impact on online book sales [15]. Thus,
Hypothesis 7a: The higher the overall average product rating, the greater the
likelihood of a click-out.
Hypothesis 7b: The higher the overall average shop rating, the greater the
likelihood of a click-out.
In general, UGC such as lists and styles are being integrated steadily into
e‑commerce [8, 14]. It is applied, among other reasons, with the aim of serving
as a sales assistant [12], to increase the purchase price and promote consumer
confidence. Because UGC is faded in by the provider and the contents can be
varied, UGC can be considered as a situational factor that potentially influ-
ences consumer behavior. Fade-ins, however, particularly graphic ones, may
distract users from their originally intended searches [1]. Taking into account
the elaboration likelihood model, Park and Chung [61] referred to a periph-
eral route that distracts the user. Wang et al. [83] mentioned that the visual
system takes effect when one is not conducting a goal-directed search [83].
Non-goal-directed searchers, using the peripheral route and UGC, may be
hedonically motivated consumers [33, 63], enjoying the shopping process itself
[29]. Their search choices are often spontaneous, and the satisfaction of needs
unrelated to the product is the most important goal (e.g., they are shopping
for “play”). Therefore, UGC is important for marketing managers wishing
to attract this specific segment of consumers and to gain competitive advan-
tages. Nonetheless, novel shopping features are also unlikely to be familiar
International journal of electronic commerce 23
to users at this point and may lead to adverse reactions from users who feel
overwhelmed or undesirably influenced by the provider. Such a reaction can
occur particularly in the case of inexperienced consumers. Contrarily, there
are also experienced users who specifically want new functions, that is, they
have the trait of “novelty seeking” [13].
In summary, we assume that lists and styles lower the likelihood of a click-
out for two reasons. First and foremost, lists and styles are not designed for
direct shopping, but for enhancing browsing, particularly in the prepurchase
phase. Second, we assume that most consumers are not familiar with novel
social shopping features, so that most focus their attention on functional as-
pects of shopping motivation. Thus,
Hypothesis 8a: The more frequently lists are used, the lower the likelihood of
a click-out.
Hypothesis 8b: The more frequently styles are used, the lower the likelihood
of a click-out.
In contrast to lists and styles, tagging is a more rational form of UGC [25].
In SSCs, tags are used mainly to annotate products. Therefore, tags can be
useful in a goal-directed search, make the search process more effective, and
enable consumers to find what they are looking for [10]. Thus,
Hypothesis 9: The more frequently tags are used, the greater the likelihood of
a click-out.
At the heart of SSCs are user profiles that aim to enhance interaction be-
tween community members. Previous research shows that consumers have
several motivations to participate in communities, for example, belonging,
entertainment, and prestige [3, 22, 70, 84]. In general, the resources offered by
virtual communities can foster shopping needs satisfaction [44]. For example,
consumers can exchange opinions on company products and help one another
with specific problems, which may lead to a more personal shopping experi-
ence [22]. However, profiles are not directly relevant to shopping, especially
for nonregistered users. Thus,
Hypothesis 10: The more frequently user profiles are used, the lower the
likelihood of a click-out.
online shops participated and the product data base included more than 1.5
million products. The users can incorporate all common features of an SSC in
order to discover, share, and recommend products. Yet only registered users
may create UGC and interact directly with other users. As is common for most
SSCs, users do not receive any monetary incentives for creating UGC.
Our study uses clickstream data from the above-mentioned SSC. Because it
uses such site-centric data, the present study can be categorized as within-
site [11, 17, 48, 73], in contrast to across-site studies [31, 35, 62]. Our data span
the period from May 1, 2009, to October 31, 2009. For each session, the pages
viewed and the viewing duration of the pages are recorded. User actions are
also recorded, such as whether a user is viewing a product-detail site. Sites
that do not relate to shopping, such as the imprint or the job-offer page, are
not included. Except for the information on whether a user is logged in or
not, we do not have any data on users (e.g., demographics). Furthermore, our
data do not measure repeat visits explicitly because of data privacy concerns
of the operator. Thus, we use single visits.
Several preprocessing tasks are necessary in order to obtain a useful data set.
For this purpose, we use PHP and mySQL. First, requests from Web crawlers
and Web spiders are eliminated [16]. The most important step in preprocess-
ing the data is to link all the data from different users and transform them
into unique sessions, that is, a single visit to a Web site [81]. We aggregate
the page-level data to the session level, by using various measures that we
introduce below. Therefore, we describe the nature of user actions within each
session. Consistent with existing approaches, we remove single-page sessions
from further analysis [9, 52]. This is crucial, because sessions with only a one-
page view do not constitute a real “browsing” session. We do the same for
sessions with a view time below 1 second, because they could result merely
from user mistakes or system errors. Furthermore, we exclude sessions with
a view time greater than 45 minutes, as well as accesses by employees. After
preprocessing, the number of sessions decreases from 7,842,591 to 2,727,634.
Nevertheless, the data volume in our study is very high in comparison with
existing studies [8].
Session Measures
The aim of our study is to characterize sessions, rather than the page-to-page
decisions of a particular user. Therefore, we use page-to-page information to
generate more general session-level measures that characterize the purchasing
behavior of users. Hence, we develop four categories of session-descriptor
variables, which correspond to our hypotheses: general, direct shopping, social
shopping, and transactional. Existing studies have incorporated some of the
input variables we present, for example, view time [34, 73], so as to examine
their impact on purchase propensity. However, most of these studies consider
International journal of electronic commerce 25
Descriptive Statistics
General
HOME Total number of index sites (home) viewed 0.081 0.340 0.000 92.000 0.000
LOG_IN Indicator variable for log-in of a visitor 0.012 0.109 0.000 1.000 —
PROD_VIEW Total number of product-detail sites viewed 0.922 1.827 0.000 152.000 0.000
PROD_VIEW_TIME Average view time per product-detail site in sec. 17.263 58.320 0.000 1,891.000 0.000
Olbrich and Holsing
VIEW_TIME Total view time in sec. 197.168 317.878 1.000 2,699.000 72.000
VIEW_TIME_AVG Average view time per page in sec. 34.450 58.995 0.250 1,302.000 17.000
Direct Shopping
SEARCH_BRAND Total number of usages of filter brand 0.285 2.326 0.000 252.000 0.000
SEARCH_CAT Total number of usages of filter category 1.452 6.346 0.000 451.000 0.000
SEARCH_FIELD Total number of usages of search field 1.127 2.472 0.000 401.000 0.000
SEARCH_GENDER Total number of usages of filter gender 0.685 3.789 0.000 430.000 0.000
SEARCH_PRICE Total number of usages of filter price 0.106 1.595 0.000 220.000 0.000
SEARCH_SALES Total number of usages of filter sales 0.046 0.900 0.000 234.000 0.000
SEARCH_SHOP Total number of usages of filter shop 0.114 0.838 0.000 178.000 0.000
Social Shopping
LIST_VIEW Total number of lists viewed 0.015 0.182 0.000 112.000 0.000
PROFILE_VIEW Total number of profiles viewed 0.009 0.199 0.000 121.000 0.000
RATING_PROD Average rating for all products viewed 14.793 32.172 0.000 100.000 0.000
RATING_SHOP Average rating for all top-tip shops viewed 13.530 31.003 0.000 100.000 0.000
STYLE_VIEW Total number of styles viewed 0.010 0.156 0.000 95.000 0.000
TAG_VIEW Total number of usages of a tag 0.041 0.666 0.000 191.000 0.000
Transactional
CLICK_OUT Indicator variable for click-out 0.386 0.487 0.000 1.000 —
International journal of electronic commerce 27
is 197.168 seconds (3.29 minutes), and the average view time per page is
34.45 seconds. Therefore, the mean number of pages visited per session is
5.72. The log-in rate is 1.2 percent (i.e., in 1.2 percent of all sessions, a user is
logged in). On average, 0.922 product-detail sites are considered. The click-
out rate is 38.6 percent. Use of social shopping features is relatively low. For
example, the mean of the variable indicating the average number of accessed
lists is just .015. These low mean values may reflect the early developmental
phase of this specific SSC and the corresponding unawareness of these new
features. In comparison, the counting variables of the more common direct
shopping features like SEARCH_FIELD (1.127) and SEARCH_CAT (1.452)
have a relatively high mean value. Overall, the mean values of all shopping
features are relatively low because there are many various features and users
do not use each at each session. This results in the value 0 for the median of
many variables.
Modeling Approach
Table 3 shows the results of the logistic regression. The model yielded a signifi-
cant likelihood ratio test (χ2(19) = 702,279.02, p < 0.0001). This implies that our
model as a whole fits significantly better than an empty model. Furthermore,
the goodness of fit is considered using the percentage of correct classifications,
that is, the hit rate and McFadden’s R2, a pseudo‑R2 statistic. The McFadden
R2 is the percentage fall in log likelihood, compared with a random effects
model with a consistent term only. In general, measures of pseudo‑R2 have to
28 Olbrich and Holsing
* Values of pseudo-R2 between 0.2 and 0.4 indicate a good model fit [43].
be interpreted with caution since they do not explain the variance in the same
way as the R2 coefficient in linear regression. Measures of pseudo‑R2 are not
as high as R2s in linear regression, such that a value of the pseudo‑R2 between
0.2 and 0.4 indicates an extremely good model fit [43]. Therefore, the value
of McFadden’s R2 in our model (0.27) demonstrates a good fit between the
estimated model and the observed empirical data. Moreover, the predictive
accuracy of our model is good, with a percentage of 73.4.
The interpretation of the coefficients is somewhat tricky. Therefore, we
interpret the results using the concept of odds ratio. The odds of an event oc-
curring is the probability that the event will occur, divided by the probability
that it will not. An odds ratio is computed by exponentiating the parameter
estimate for the predictor variable, and it can be interpreted as the multiplica-
tive change in the odds of a one-unit change in the predictor variable [2]. When
interpreting quantitative variables, it is useful to do the following: subtract 1
International journal of electronic commerce 29
from the odds ratio and multiply by 100. This yields the percentage increase or
decrease associated with a one-unit increase in the independent variable [2].
All variables are highly statistically significant at the .0001 level. Both
the view time (H1) and the average view time per page (H2) have a signifi-
cant impact. According to the magnitude of the odds ratios, the view time
(VIEW_TIME) is the most important and has a positive impact (14.641). In
contrast, the higher the average view time per page, the lower the likelihood
of a click-out. This negative impact is indicated by an odds ratio below 1 for
the variable VIEW_TIME_AVG. The odds ratio of .05 of VIEW_TIME_AVG
means that the odds of a click-out are 95 percent lower per 1‑second increase
in average view time per page. In summary, H1 and H2 are supported.
Moreover, H3 is also supported. We find that the more product-detail sites
a consumer accesses, the lower the likelihood of a click-out. This result was
expected, as a high use of product-detail sites may indicate a non-goal-directed
visit to the site, in which the consumer has not already built a consideration set
and continues browsing. The average view time per product-detail site (H4)
has a positive effect. The odds ratio is 1.796, meaning that the odds of a click-
out are 79.6 percent higher per additional second on a product-detail site.
In agreement with H6, the odds of a click-out are 97.1 percent lower per
additional visit to the home page. This implies the importance of the home
page as a tool for user orientation. Consistent with H8a and H8b, the frequent
use of lists (0.13) and styles (0.33) lowers the likelihood of a click-out. This
finding may indicate that lists and styles support site stickiness (i.e., users
stay longer on the Web site), browsing, and inspiration. This assumption is
supported by our additional finding that the average view time in sessions, in
which at least one list or style is considered, is 5.12 minutes and is thus about
56 percent higher than in sessions with no considered list or style. According
to the odds ratio of 1.393, tags have a positive effect. The more user-generated
tags are used, the greater the likelihood of conducting a click-out. Therefore,
H9 is supported.
The positive impact of the variables RATING_PROD (1.032) and RAT-
ING_SHOP (1.271) is also in line with our assumption in H7a and H7b.
Therefore, user-provided ratings for shops and products play an important
role in consumer decision-making processes and increase the likelihood of a
click-out. Interestingly, when comparing the magnitude of the odds ratios,
a high shop rating is evidently more important than a high product rating.
This may be due to the fact that fashion and lifestyle products are up-to-date
for only a short period and therefore are not rated as frequently as shops. As
mentioned, both variables are heavily aggregated measures within a session.
Therefore, these variables should be considered carefully. However, they may
be useful in providing some initial insight into the direction of impact.
The odds ratio for user profiles (PROFILE_VIEW) has the most negative
value of all social shopping features (0.006). That is, the more user profiles
used within a session, the lower the likelihood of conducting a click-out.
Hence, H10 is confirmed.
Use of the direct shopping feature for price (H5e, SEARCH_PRICE) is the
only such feature with a positive impact on click-out. The more this feature is
used, the greater the likelihood of a click-out. This implies the importance of
30 Olbrich and Holsing
price within the purchasing process. Accordingly, our hypotheses regarding the
direct shopping features (H5(a)–(g)) are supported for six of the seven direct
shopping features. That is, the more conventional direct shopping features
are used, the lower the number of click-outs. As assumed above, increasing
transaction cost and information overload could be potential reasons. Fur-
thermore, in the case of knowledge-building, a consumers’ ongoing search
is motivated by the desire to acquire a bank of product knowledge that is
potentially useful in the future. Therefore, a consumer uses several shopping
features, but does not conduct a click-out. As expected, the use of the search
field (SEARCH_FIELD), which is often the starting point for a search, has the
most negative impact of all direct shopping features (.159).
Last but not least, we found that the binary coded control variable LOG_IN
has a significant effect on click-out. The value 0 stands for not logged-in, and 1
for logged-in. The odds ratio is 0.003 for value 0 as opposed to value 1. This
means that the probability of a click-out occurring—CLICK_OUT = 1—is lower
for the value 0 than for the value 1. In other words, logged-in users have a
higher tendency to do a click-out in comparison to non-logged-in users. One
possible explanation could be that registered community members are experi-
enced in online shopping. Hence, they visit the SSC regularly to communicate,
search, and purchase. This is in line with van den Poel and Buckinx [81], who
assumed registered clients to be among the most active ones. Our finding also
corresponds with Moe and Fader [49, 50], who demonstrated that the more
often people visit a retail site, the more likely they are to buy. Although our
data do not measure repeat visits explicitly, because of data privacy concerns
of the operator, we assume that logged-in users are repeat users.
Finally, Table 4 summarizes the results of hypothesis testing. It is evident
that only H5e, for the direct shopping feature of price, is not supported. That
is, this feature does not yield the expected negative impact on a click-out.
General
HOME H6 - Yes
LOG_IN (0 vs. 1) — —
PROD_VIEW H3 - Yes
PROD_VIEW_TIME H4 + Yes
VIEW_TIME H1 + Yes
VIEW_TIME_AVG H2 - Yes
Direct shopping
SEARCH_BRAND H5a - Yes
SEARCH_CAT H5b - Yes
SEARCH_FIELD H5c - Yes
SEARCH_GENDER H5d - Yes
SEARCH_PRICE H5e - No
SEARCH_SALES H5f - Yes
SEARCH_SHOP H5g - Yes
Social shopping
LIST_VIEW H8a - Yes
PROFILE_VIEW H10 - Yes
RATING_PROD H7a + Yes
RATING_SHOP H7b + Yes
STYLE_VIEW H8b - Yes
TAG_VIEW H9 + Yes
cost-benefit trade-offs [8, 40]. The more direct shopping features that are
used, the lower the probability of a click-out. In addition, a consumer focus
on functional aspects and goal-directedness is also confirmed by our result
that a high average view time per page correlates negatively with a click-out.
Moreover, our data analysis yields several meaningful implications for opera-
tors and online retailers.
UGC is a fundamental part of the business model of SSC because users add value
to the operator. According to our findings, user-provided ratings for online shops
and products play a significant role in consumer decision-making processes. A
high overall rating seems to be a significant generator of click-outs. Likewise,
the use of tags exerts a positive influence on click-outs. Presumably, providing
tags supports goal-directed searching and enables consumers to find what they
are looking for. Therefore, an operator should animate users to rate products
and shops and generate tags in order to maximize the number of click-outs.
Lists and styles are novel features that are designed to enhance site sticki-
ness, stimulate browsing, and thus enhance inspiration. This conforms to our
finding that the use of lists and styles is negatively correlated with click-out,
32 Olbrich and Holsing
but the average view time in sessions, in which at least one list or style is con-
sidered, is about 56 percent higher. Despite the negative impact on click-out,
lists and styles could lead to positive long-term effects on the click-out rate and
sales. Given that a consumer may be in the prepurchase phase, a purchase is
not intended in the current session. However, lists and styles may stimulate
the examination of a product. Thus, a product could enter into a consumer’s
considered set of products and lead to a purchase in the future [47]. Therefore,
such users may be treated as potential consumers [60].
Moreover, social shopping in general could be regarded as a form of enter-
tainment [33]. Therefore, lists and styles may be important elements of Web
site design and could lead to a more emotional shopping experience. This may
be especially important for Web sites focusing on women, like SSCs. In this
context, Hansen and Jensen [28] found that women are more inclined than
men to “shop for fun.” Furthermore, social shopping features could attract the
segment of “24-hour shoppers” who love shopping online in order to explore
new ideas and goods, as identified in a recent McKinsey study [51]. Therefore,
lists and styles may enhance the business-consumer relationship and increase
loyalty rates [22], at least within these target segments.
Regarding the revenue model, the stickiness (higher view time), during ses-
sions in which at least one list or style is considered, could also lead to more
page views and thus to more advertising impressions, for example, banner
ads for specific products. Nevertheless, one further explanation of the negative
impact of lists and styles on click-out could be explained by their novelty and
information overload, especially for inexperienced users. Furthermore, goal-
oriented and time-pressed consumers may be confronted with psychological
reactance, e.g., when they feel obliged to use lists and styles. As with lists
and styles, use of profiles is also negatively correlated with click-out. Since
profiles are designed for enhancing interactivity and are not directly relevant
to shopping, an operator may have a problem monetizing this kind of UGC.
Nonetheless, profiles also enhance the site stickiness. In addition, profiles are
a core component of SSCs and, as discussed below, essential for establishing
a shopping-savvy community with a high economic value.
To avoid consumer reactance and information overload, as well as stimulate
the use of social shopping features, an operator could explain the concept of
an SSC. The explanation of social shopping features, as well as direct shopping
features, on a separate site of the SSC may be an appropriate way of achieving
this. In practice, such distinct information sites are often used. Furthermore,
an operator may improve the features, as well as content utility, for example,
by conducting usability tests, in order to improve conversion rates [4].
Moreover, our results clearly indicate that a cost-benefit perspective may be
useful for understanding and predicting purchasing behavior in SSCs. There-
fore, an operator should provide effective search tools to users; otherwise, a
user could easily abandon the session. Potential explanations could be infor-
mation overload and high transaction costs. This is shown by the result that a
high usage of direct shopping features lowers the likelihood of a click-out. In
this regard, our analysis shows that the direct shopping feature of price is the
only one that correlates positively with a click-out. Not surprisingly, product
prices seem to be an important factor within the decision-making process.
International journal of electronic commerce 33
Furthermore, we found that a frequent use of the home page exerts a strong
negative impact on click-out. This may be explained by a non-goal-directed
search, or as an indicator of information overload. Thus, providing users with
relevant information and effective search and support tools on the home page
could stimulate the user to continue searching.
Providing all relevant information regarding the purchase transaction may
also be important for product-detail sites. We found that a high average view
time per product-detail site correlates positively with a click-out. This indicates
that consumers intensively check all the information given there because this
is relevant for purchasing.
Finally, we found that logged-in users have a higher probability of making
a click-out than non-logged-in users. Logged-in users are few in number, but,
at the same time, they generally have a high economic value. It is well known
that a relatively small share of customers are responsible for a relatively large
share of profit [56]. Moreover, it is often stated that it is more important to look
after existing customers than to acquire new ones [53]. Hence, following the
strategy of community building may be an appropriate way to boost revenue.
Paying attention to community behavior and developing tools to increase
loyalty may be a prudent tactic.
In general, more and more consumers use infomediaries [76] as well as new
shopping channels in Web 2.0 [23, 64, 75]. Therefore, online retailers and
manufacturers must integrate this development into their marketing strategy.
SSCs could be one important component.
Our results show that the higher the overall average shop ratings on
product-detail sites, the greater the likelihood of conducting a click-out to a
participating online shop. Therefore, online retailers should encourage con-
sumers (their customers) to rate their shop in order to enhance its reputation
and trustworthiness [39]. The situation is the same for product ratings. Manu-
facturers could animate consumers to rate their products and brands.
The situation is the same for user-generated tags: the more tags used within
a session, the greater the probability of a click-out. Hence, activating consum-
ers to tag products with specific key words is another tactic that could draw
attention to specific items.
Lists and styles are also a very innovative marketing tool. Stimulating
consumers to create lists and styles with specific manufacturers’ products
could lead to a high degree of awareness. As described above, some leading
fashion brands are already experimenting with SSCs. For example, Coach’s
contest discussed earlier was very successful. Within one week, Coach received
3,692 styles, with 103,379 likes and 204,656 page views [26]. Besides the high
visibility on the SSC itself, a contest could also increase decentralized brand
and shop awareness when, for example, consumers, especially “lead users,”
embed this content in their social networks. This encourages user participation
and the creation of emotional links that enhance shop and product loyalty [22].
Furthermore, from the perspective of an operator, social shopping features
34 Olbrich and Holsing
can support one of the most important success factors in e‑commerce in the
future: decentralization [64].
Moreover, manufacturers could upload images of a new product or col-
lection before deciding to produce them, so as to obtain input from users,
especially fashion-savvy users. For this purpose, manufacturers could organize
a contest and use it as a forecasting tool, that is, base their order or product
quantities on how often their products are included in styles. In this context,
retailers and manufacturers could also license the SSC technology for use on
their own Web sites, for example, as a white label solution, with respect to
just such market-research questions.
Last but not least, the price of products is a fundamental component of
consumer decision-making processes. As our analysis shows, the direct shop-
ping filter mechanism of price correlates positively with a click-out. Thus,
online shop managers should take this into account and create appropriately
specific pricing strategies.
Overall, our findings yield preliminary insights for marketers, as well as
researchers, so that they can better assess the purchasing behavior in SSCs.
In particular, our results suggest that UGC, within the new business model of
SSC, should be taken seriously by online retailers and manufacturers in order
to boost brand or shop awareness as well as sales.
Our study is the first to model consumer purchasing behavior in SSCs with
detailed clickstream data, but it has limitations. First, we were unable to de-
termine whether the significance of the measures is due to the nature of result
presentation by the operator or the way the information is processed by the
user. Furthermore, we abstracted the Web site by categorizing pages, which
resulted in the loss of substantial information in terms of page content. Second,
we used aggregated measures in our models. This inevitably entails a degree
of lost information. Third, the data were obtained from an early developmental
phase of the observed SSC. Thus, consumers are often unfamiliar with the
various facilities. Observation over time would therefore be useful in order
to integrate a more representative sample into the modeling process.
A number of interesting research questions remain open. It would be useful
to investigate in greater detail the behavior of repeat users, as well as registered
users. An investigation of interaction behavior with other users and the use
of their own, self-created UGC would also be of substantial benefit. In this
manner, an operator could more accurately determine the economic value of
a particular registered user. In this respect, the use of created content by other
users and the associated revenues through, for instance, a click-out could be
allocated to a specific user. Therefore, a combination of clickstream data with
additional data sources, such as revenue, could yield additional insights.
An investigation of further categories, such as consumer electronics, could
usefully extend our results. In addition, capturing actual purchases on par-
ticipating online shops would provide a more complete picture of purchasing
behavior. Moreover, an investigation of embedded lists and styles on social
International journal of electronic commerce 35
networks like Facebook would be of great interest. For example, their impact
on conversion rates, in comparison to other online marketing activities, would
be worth considering.
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