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The Effect of the Number of Product Subcategories on Perceived Variety and

Shopping Experience in an Online Store

Article in Journal of Interactive Marketing · August 2011

DOI: 10.1016/j.intmar.2011.04.001

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Journal of Interactive Marketing 25 (2011) 159 – 168

www.elsevier.com/locate/intmar

The Effect of the Number of Product Subcategories on Perceived Variety and

Shopping Experience in an Online Store
Chingching Chang
Department of Advertising, National Chengchi University, 64, Sect. 2, Zhi-nan Road, Taipei 11605, Taiwan

Available online 8 May 2011

Abstract

This study tested whether organizing the same number of products in different ways on an online store's website influences attitudes toward
the store. The pilot study revealed that when the products were sorted into more subcategories (9 as opposed to 3), such that more subcategory
options appeared in the selection menu, participants perceived that the website offered a greater variety of products and experienced greater ease of
navigation and shopping pleasure, which improved their attitudes toward the online store. The next experiment tested the same effect but with
three subcategory quantities (18, 9, and 3) while also considering the moderating effect of choice uncertainty (high versus low) in two processing
contexts (buying versus browsing). The more subcategory options, the greater consumers' perceived variety. However, the influence of the
number of subcategory options on ease of navigation, shopping pleasure, attitudes toward the store, and future purchase intentions indicated an
inverted U-shaped pattern; moreover, the influence was significant only among participants with low rather than high choice uncertainty. This
article concludes with implications for online marketing.
© 2011 Direct Marketing Educational Foundation, Inc. Published by Elsevier Inc. All rights reserved.

Keywords: Categorization; Choice uncertainty; Online shopping; Perceived product variety; Processing goal

Prior research has clearly documented the influence of
product assortment or variety on consumer behavior (e.g.,
Hoch, Bradlow, and Wansink 1999). For example, repeat
patronage of a store depends on perceived product variety,
which ranks behind only location and price in importance
(Arnold, Oum, and Tigert 1983). Online marketing research
also shows that consumers shop online for the benefits of the
available product variety and that a wide product selection
contributes significantly to greater website satisfaction, better
attitudes toward online shopping, and greater store loyalty
(Bansal et al. 2004; Koo 2006; Lim and Dubinsky 2004). Yet
increasing actual product variety also increases marketing costs.
Thus, marketers aim to maximize perceptions of variety without
adding new product options.
Prior research also distinguishes between perceived and real
product variety and shows that the former can be manipulated
(Kahn and Wansink 2004), which implies that consumers may
not actively assess the actual number of products. Rather, they
turn to various cues to judge product variety. For example,
E-mail addresses: shenc@nccu.edu.tw, chingching.chang@gmail.com.
1094-9968/$ - see front matter © 2011 Direct Marketing Educational Foundation, Inc. Published by Elsevier Inc. All rights reserved.
doi:10.1016/j.intmar.2011.04.001
product displays and product organization influence perceived
product variety in brick-and-mortar stores (Broniarczyk, Hoyer,
and McAlister 1998); however, this finding might not
generalize to behavior in an online setting, considering the
important differences between these two types of shopping
experience. Shoppers often use the space devoted to a product
display in a real-world store as an indication of retail store
variety (Broniarczyk, Hoyer, and McAlister 1998), but this cue
is not visible in an online store. Furthermore, online product
information generally appears in hierarchical patterns, so
consumers view products through filtered pages, rather than
seeing them all displayed on the same page. This study tests
product variety perceptions specifically in an online shopping
setting and thereby extends previous studies that have
concentrated only on brick-and-mortar shopping behavior.
Specifically, this study proposes that product categorization
in an online store affects perceived variety, such that appropriate
categorization can help consumers navigate through the online
store more easily and with greater pleasure, which should foster
their better attitudes toward the store and increase their purchase
intentions. Because the effect of the number of subcategory
160 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168
options is probably not monotonic, this study includes three
levels of subcategory options, with a predicted inverted U-
shaped effect. Moreover, the individual factor of choice
uncertainty, defined as “uncertainty about what alternative to
choose” (Urbany, Dickson, and Wilkie 1989, p 208), may
moderate the influence of the number of subcategory options,
such that its effects emerge only when consumers are certain in
their choice because the appropriate categorization has helped
them identify their desired option. Finally, consumers usually
visit online stores with either buying or browsing goals in mind,
so this study also tested the effect of the number of subcategory
options across these goal contexts.
In summary, this study adds to extant literature in five
important ways: (1) It reveals the effect of the number of
subcategory options on perceived product variety in an online
store; (2) it demonstrates that the number of subcategory options
influences attitudes toward the online store, through ease of
navigation and shopping pleasure; (3) such effects follow an
inverted U-shaped pattern, such that products sorted into a
moderate number of subcategory options generate the optimal
effect; (4) choice uncertainty moderates the effects of the number
of subcategory options; and (5) these effects occur for both
consumers who make a purchase and those who just browse.
These findings have important practical implications for online
marketers.
Subcategory Options and Perceived Product Variety
Product variety generally refers to the depth or breadth of
product assortment (Simonson 1999)—with depth defined as “the
number of variants in a product line” and breadth as “the number
of product categories offered by a retailer” (Hart and Rafiq 2006,
p 339)—and drives shopping satisfaction (Hoch, Bradlow, and
Wansink 1999). Prior research shows that perceived, rather than
actual, product variety influences consumer behavior (Kahn and
Wansink 2004). Therefore, this study focuses on the perceived
breadth of an assortment within a category and its effects on the
perceived product variety when products appear grouped into
different numbers of subcategories.
A more varied product assortment entails substantial costs in
terms of research, development, manufacturing, and distribution
operations. For retailers, altering perceptions of variety without
increasing actual product assortment would be a worthwhile
endeavor. For example, shoppers might form perceptions of
product options by visually scanning a product display, which is
why the total physical space devoted to displaying a particular
product provides an indicator of variety (Broniarczyk, Hoyer, and
McAlister 1998). However, such phenomena may be limited to
real-world retailers. In an online shopping environment, infor-
mation appears organized in a hierarchical, filtered order, which
makes it difficult for customers to estimate variety on the basis of
display space. However, the number of subcategory options in a
selection menu could trigger similar variety perceptions, such that
more subcategory options lead online shoppers to perceive greater
product variety.
With the exception of a study by Morales et al. (2005), prior
research has ignored the relationship between website design
and perceived product variety. Morales et al. (2005) argue that
product assortment online can be either unfiltered (i.e.,
presented simultaneously) or filtered (i.e., categorized into
different subgroups), but a filtered presentation encourages
participants to visit only those pages that match their shopping
goals, reducing perceived product variety compared with
unfiltered presentations. Yet most medium to large e-retailers
group their products into different subcategories. Therefore,
they require information about the effects of not only filtered
versus unfiltered option links but also the influence of varying
numbers of filtered categories. With the same number of
products, more subcategory options may increase perceived
product variety.
Hypothesis 1. With fixed product variety, consumers perceive
that an online store offers a greater variety of products when its
website features more subcategory options.
Greater Variety and Choice Uncertainty
Product variety also influences product preferences and
choices, though the direction of its influence remains in dispute.
A larger assortment could be associated with greater satisfaction
because it increases the probability of a perfect match between the
consumer's preference and available alternatives (Lancaster
1990). Such an assortment also provides consumers with decision
freedom (Reibstein, Youngblood, and Fromkin 1975), choice
flexibility (Kahn 1998; Kreps 1979), and choice optimization
(Kahn 1998). In this sense, a bigger assortment can lead to more
online sales (Borle, Boatwright, Kadane, Nunes, and Shmueli,
2005).
In contrast, a larger assortment could have negative decision
consequences because consumers can assess only a limited
amount of product information at any given time. Making choices
involves ranking available options, and choosing from among
more options demands greater cognitive exertion, which can result
in a cognitive deficit (Malhotra 1982). Such choices also are more
difficult and time consuming (Fasolo et al. 2009; Sloot, Verhoef,
and Franses 2005) and thus may reduce perceived search
efficiency (Sloot, Fok, and Verhoef 2006), delay purchase
decisions, and/or result in less product satisfaction (Iyengar and
Lepper 2000). These negative effects may explain why sales
increase after the removal of unpopular items from retail or online
stores (Boatwright and Nunes 2001; Drèze, Hoch, and Purk 1994).
The controversy between these positive and negative views
might reflect individual consumer differences. That is, the
influence of assortment size on product preferences depends on
individual characteristics that determine how people make
choices (Chernev 2003a, 2003b; Mogilner, Rudnick, and Iyengar
2008). For example, Chernev (2003a) finds that people who hold
specific ideals for product attributes in mind engage in more
selective and confirmatory processes. This processing style
reduces the risk of information overload caused by large
assortments and facilitates the choice process. These consumers
therefore prefer a larger assortment because the variety provides
more options from which to choose and greater utility (Chernev
2003b). Mogilner, Rudnick, and Iyengar (2008) note in addition
 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168
that the positive effects of large product assortments occur only
among consumers who need to construct new preferences, not
those who engage in identifying their already preferred items.
Accordingly, it is possible that perceived variety, as triggered by
the level of product categorization in an online store, results in
mixed consequences, depending on the customer. In particular,
consumers' choice uncertainty may moderate the influence of the
number of subcategory options.
Many consumers experience uncertainty prior to their
purchase decisions (Urbany, Dickson, and Wilkie 1989), in the
form of knowledge uncertainty, defined as “uncertainty regarding
information about alternatives” (p 208), or choice uncertainty,
which is “uncertainty about what alternative to choose” (p 208).
When people are uncertain about which is the best option because
all the options are generally attractive, they engage in detailed
comparisons. With more attractive options, this comparison task
becomes more difficult, so many consumers defer their choice
(White and Hoffrage 2009). Dhar (1997) also finds that
consumers defer their choices when the differences among the
available options are less evident. Thus, uncertainty about which
option to choose may result from being overwhelmed by the
choice process. Accordingly, when people feel uncertain about
making a choice, they may not attain the positive effects of large
option categories.
In contrast, if people are certain about which option to choose
(i.e., low choice uncertainty), they may prefer more subcategories
because of the positive utility and stimulation they provide.
However, if the number of subcategory options reaches a
sufficiently high number, even these consumers may find the
variety confusing and without utility. Prior research suggests that
stimulation and satisfaction exhibit an inverted U-shaped
relationship (Steenkamp and Baumgartner 1992), such that
people prefer websites with medium rather than high or low
levels of complexity (Martin, Sherrard, and Wentzel 2005).
Similarly, the effect of the number of choices on purchase
decisions should follow an inverted U-shaped pattern (Shah and
Wolford 2007), such that a moderately large number of options
generates the most positive effects.
Utilitarian Function of Subcategories
Organizing the product assortment appropriately serves an
important utilitarian function, in that it increases the ease of
navigation and facilitates the decision-making process. Consumer
decision making often follows a hierarchical process (Tversky
and Sattath 1979) with sequential elimination (Bettman 1970). In
hierarchical decision processes, people first choose among
subgroups, then focus on evaluating the options within the single
chosen subgroup. That is why appropriate product display
facilitates the ease of choosing a product (Simonson 1999).
The filtered design of websites may encourage such a decision
process, so the appropriate categorization of the products should
be particularly important online. Online shopping research
suggests specifically that information organization influences
the ease of navigation (Tarafdar and Zhang 2005). For example, if
consumers perceive an easier decision process because the
product categorization is appropriate, they should find the website
161
easier to navigate. As argued previously, people who experience
low choice uncertainty prefer moderate numbers of product
subcategories because this categorization facilitates their decision
making. Therefore, the effects on ease of navigation should be
optimal with a moderate number of subcategories when
consumers experience low choice uncertainty.
Hypothesis 2a. A moderately large number of subcategory
options leads to greater ease of navigation for consumers with low
choice uncertainty, but not for those with high choice uncertainty.
Hedonic Function of Subcategories
Prior research suggests that shopping itself provides sensory
stimulation (Tauber 1995), which is associated with pleasure
(Sloot, Verhoef, and Franses 2005). Online shopping also
provides a hedonic experience (Menon and Kahn 2002), and
stimulating website features can enhance pleasure (Fiore, Jin, and
Kim 2005). Therefore, the hedonic effects of the number of
subcategories in an online store deserve further research attention.
In particular, subcategory levels may serve a hedonic
function by providing pleasurable stimulation. People have an
internal drive to experience an optimal level of stimulation
(McAlister and Pessemier 1982), and both product variety
(Menon and Kahn 1995) and product displays (Fiore, Jin, and
Kim 2005) provide such hedonic stimulation, which leads to
shopping pleasure. In the context of online shopping as well,
though product categorization can be associated with sensory
stimulation and shopping pleasure, this positive experience may
occur only among consumers with low choice uncertainty,
when the number of subcategory options is moderate.
Hypothesis 2b. A moderately large number of subcategory
options leads to greater shopping pleasure for consumers with low
choice uncertainty, but not those with high choice uncertainty.
Perceived Product Variety and Attitudes Toward Online Stores
In a real-world retail environment, assortment variety relates
significantly to satisfaction with the retailer (Hoch, Bradlow, and
Wansink 1999). In a virtual retail environment, product
assortment also strengthens store loyalty (Koo 2006). Therefore,
product categorization should affect attitudes toward the online
store, as well as future purchase intentions, which remains an
extremely important variable for online marketers.
Hypothesis 3. A moderately large number of subcategory
options leads to (a) more favorable online store attitudes and
(b) stronger purchase intentions than few or extremely many
options among consumers with low choice uncertainty, but not for
those with high choice uncertainty.
Finally, consumers with different processing goals generate
different degrees of satisfaction with varied product organiza-
tions (Mogilner, Rudnick, and Iyengar 2008). Therefore the
effects of subcategory option number for shoppers with
different processing goals also were compared. For those who
visit a website to purchase a product, a larger number of
subcategory options may facilitate their navigation and enhance
162 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168

their attitudes toward the store. For those browsing the website
simply for fun, more subcategory options may enhance their
pleasure and also increase their attitudes toward the store. That
is, the predictions in the preceding hypotheses should hold
regardless of whether consumers visit the online store with
purchasing or browsing goals in mind.
Pilot Study
were going to buy a new bag, they had no idea what kind to
purchase, and a friend had recommended this new website.
In a pretest, participants (N = 120) selected the price range of
bags they usually purchased. The most common (40%) range
was 401–800 NT dollars, so the experimental websites
indicated that the prices for all the featured products were
between 400 and 800 NT dollars. The main study instructions
also asked the participants to assume that all the bags displayed

The pilot test pertained to the influences of different numbers Table 1

of subcategory options in an online store on perceived variety and Product subcategories in each experimental condition.
the resultant effects on ease of navigation, shopping pleasure, and Pilot study
thus online store attitudes.
Attribute Small number of subcategories Large number of subcategories
Style Shoulder bags Hobo bags
Design Satchel bags
Swing packs
This experiment featured a 2 (number of subcategory options: Handbags Clutch bags
moderately large= 9 versus small = 3) × 2 (categorization attribute: Handbags/purses
fabric versus style) between-subjects factorial design. The Evening bags
Backpacks Backpacks
participants, female college students, considered an online store Utility backpacks
that sold bags and purses, which represented a common purchase Back bags
category for these respondents. A pretest determined the number of Fabric Woolen bags Woolen bags
subcategory options that would represent the large and small Artificial-fur bags
conditions; the pretest participants (N = 80) listed types of bags Knit bags
Cloth bags Canvas bags
they knew. The majority, 76.2%, could list at least three types, so 3 Nylon bags
served as the small number. The maximum number of bags Cotton and linen bags
identified, 9, provided the large number. Finally, the categorization Leather bags Synthetic leather bags
attribute factor (fabric versus style) helped ensure that responses Leather bags
did not depend solely on the type of attribute being categorized, so Suede bags
that the findings could be generalized. Table 1 provides a Main Experiment
descriptive list of the product subcategories in each experimental
Attribute Small number of Moderately large Extremely large
condition.
subcategories number of number of
subcategories subcategories
Stimuli Development Style Shoulder bags Hobo bags Tote Hobo bags
Dumpling bags
Four newly created shopping websites represented each of the Satchel bags Business satchel bags
experimental conditions. The layout and content of the four Causal satchel bags
Swing packs Multi-functional swing
websites remained constant; they provided hyperlinks to home- packs
pages, product pages, shopping instructions, payment instruc- Fashion swing packs
tions, and contact information. Only the product pages differed in Handbags Clutch bags Drawstring clutch bags
the number of subcategory options. All websites featured the Original clutch bags
same 90 bags, but the products were organized into more (9) or Handbag/purses Shopper handbags/
purses
fewer (3) subcategories based on their fabric or style. In addition, Luxury handbags/purses
the number of filtered hierarchical levels remained absolutely Evening bags Shell evening bags
constant across all conditions. Soft material evening
bags
Backpacks Backpacks Climbing backpacks
Participants and Procedures Metropolitan backpacks
Utility Utility backpacks with
Because bags are more popular among women than men, only backpacks mezzanine
female students (N = 96), recruited from a university in Taipei, Utility backpacks with
inner pockets
participated and received compensation. The recruitment ads
Back bags Sport back bags
circulated on the school bulletin board system. Participants Casual back bags
enrolled for specific time slots and came to a computer lab to
Notes: All products were featured with two hierarchical levels. This table shows
complete the study, where they were randomly assigned to how 9 categories were created from 3 broad categories and how 18 categories
different computers that featured one of the four experimental were created from 9 categories. Without changing any product options, the same
websites. The instructions asked participants to imagine that they product set can be categorized into different numbers of subcategory groups.
 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168 163

were within their budgets, such that they should browse the
website as they would if they were actually shopping online and
had to make a selection from among the options presented. They
were instructed to click on the “purchase now” button when
they had chosen a bag to complete their online shopping.
After participants completed their “purchase,” they filled out a
questionnaire that contained items designed to assess their
attitudes toward the online store, the ease of navigation, the
shopping pleasure associated with the website, and perceived
product variety. A translation and back-translation procedure, as
suggested by Brislin (1987), converted the measures into Chinese.
Dependent Measures
All scales used seven-point Likert scales, with the responses to
scale items averaged for analysis. Perceived product variety
consisted of two items: “It has a large selection of products” and
“It offers a wide variety of products” (Cronbach's alpha = .77).
Ease of navigation used four items from Van der Heijden (2004):
“It is easy to navigate the site”; “It is easy to use the website”; “The
presentation of the products is helpful for making choices”; and
“The presentation of the products is user friendly” (Cronbach's
alpha = .80). The shopping pleasure scale consisted of three
statements, also from Van der Heijden (2004): “It was fun to
browse the website”; “It was a great pleasure to browse the
website”; and “The website was interesting” (Cronbach's
alpha = .85). For attitudes toward the online store, participants
reported the degree to which they felt the online store was “good,”
“likable,” “favorable,” and “pleasant” (Cronbach's alpha = .93).
Results
Consistent with H1, an analysis of variance (ANOVA) showed
that the main effect of the number of subcategory options on
perceived product variety was significant. As Table 2 indicates, a
large number of subcategory options (M = 4.54, SD = 1.18)
generated greater perceived product variety than did a small
number of subcategory options (M = 4.10, SD = .87).
The main effects of the number of subcategory options on the
other dependent variables also were significant. Participants in
the larger number condition, compared with those in the smaller
number condition, rated the website as easier to navigate,
Mlarge = 5.70, SD = .81; Msmall = 5.30, SD = .92, and more plea-
surable to shop, M large = 4.08, SD = 1.22; M small = 3.51,
SD = 1.28. Those in the large number condition also held
more favorable attitudes toward the online store, Mlarge = 5.15,
SD = .93; Msmall = 4.76, SD = .96. However, the interactions
between attribute type and the number of subcategory options
were not significant for any of the dependent variables, which
indicated that attribute type did not influence the effects of the
number of subcategory options.
The test of the mediating role of ease of navigation and
shopping pleasure used multiple regressions (Table 3), follow-
ing Baron and Kenny (1986). To establish mediation, the results
of the four regressions should meet the following criteria: The
independent variable significantly predicts the mediator; the
mediator accounts for significant variance in the dependent
variable; the independent variable significantly predicts the
dependent variable; and when both the independent and the
mediator are in the equation, the influence of the independent
variable becomes insignificant, but the mediator remains
significant. As Models 1a and 1b in Table 3 indicate, ease of
navigation and shopping pleasure both met the criteria; they
represent significant mediators of the relationship between the
number of subcategory options and online store attitudes.
Discussion
The same number of products organized into nine rather than
three subcategories caused shoppers to perceive that the online
store offered a wider selection of products. The higher number
of categories also led to higher ratings with regard to the ease of
website navigation and shopping pleasure, which in turn

Table 2
Summary of analyses of variance.
Perceived product Ease of navigation Shopping pleasure Attitudes toward the Purchase intentions
variety online store
F p η2p F p η2p F p η2p F p η2p F p η2p
The pilot study (N = 96)
Number of Subcategory Options (C) 4.22 .04 .04 5.22 .03 .05 4.88 .03 .05 4.14 .05 .04
Attribute (A) .09 .77 .01 3.49 .07 .04 .03 .86 .01 .62 .43 .01
CxA .09 .77 .01 .07 .79 .01 .56 .46 .01 2.23 .14 .02

The experiment (N = 120)

Goal (G) .34 .56 .01 .02 .90 .00 .84 .36 .01 1.56 .22 .01 .02 .89 .01
Number of Subcategory Options (C) 3.47 .04 .06 2.09 .13 .04 .58 .56 .01 .59 .56 .01 .57 .57 .01
Choice Uncertainty (U) .05 .83 .01 .21 .65 .01 .53 .47 .01 .18 .68 .01 1.65 .20 .02
GxC .63 .54 .01 .86 .43 .02 1.06 .35 .02 .84 .44 .02 .32 .73 .01
GxU .16 .69 .01 1.40 .24 .01 .01 .99 .01 .01 .98 .01 .30 .59 .01
CxU 2.85 .06 .05 3.39 .04 .06 4.05 .02 .07 3.29 .04 .06 5.33 .01 .09
GxCxU .09 .92 .01 .57 .57 .01 .48 .62 .01 1.19 .31 .02 .41 .67 .01
164 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168

Table 3 Participants and Procedures

Multiple regression analyses: mediating role of ease of navigation and shopping
pleasure.
The procedures mirrored those from the pilot study: 120
Pilot Study Main Experiment female students recruited from a national university in Taipei
Model 1a Model 2a received compensation for their participation. They first
IV DVEN SA SA SA EN SA SA SA completed a short online survey that determined their choice
Subcategory Option .23* .20* .07 .27* .31* .15 uncertainty toward bags. When they arrived at the experimental
No. Code1 session, participants assigned to the purchase condition were
Subcategory Option NA NA .31* .11 -.07 asked to imagine that they were about to purchase a bag from
No. Code2 the online store and could shop until they settled on their choice.
Ease of Navigation .52** .58** .62** .60** They clicked the “purchase now” button after they had made
(EN)
their selection, then completed the questionnaire. Participants in
Model 1b Model 2b the browsing condition instead were told to browse the website
IV DVSP SA SA SA SP SA SA SA
as they would at home and that they did not have to make a
purchase. They simply closed the window when they had
Subcategory Option .23* .20* .05 .32* .31* .05
No. Code1
finished browsing the website, then completed the question-
Subcategory Option NA NA .06 .11 .07 naire. Because browsing consumers often find products they
No. Code2 like, even if their primary intention is simply to look, those in
Shopping pleasure .67** .64** .82** .80** the browsing condition could make a choice if they wanted to
(SP) do so.
Notes: SA =attitudes toward the online store, PI =purchase intention. For the pilot
study with two levels, Code 1 (−1 for the 3-category condition; 1 for the 9-category Independent Measures
condition; 0 for the 18-category condition) was entered into the regressions. For the
experiment, both Code 1 and Code 2 (−.5 for the 3-category condition; −.5 for the 9-
category condition; 1 for the 18-category condition) were entered in the regressions. Processing Goal
* p b .05. ** p b .01. To ensure that they browsed in accordance with their
manipulated goal, the participants indicated their level of
agreement with two purchasing goal items (“I have been
enhanced attitudes toward the online store, without ever seriously thinking about what bag to purchase” and “I browsed
changing the actual assortment variety. the website as if I were about to purchase a bag”; Cronbach's
alpha = .81) and two browsing goal items (“I cursorily browsed
the website as I would when I have no need to buy products”
Main Experiment and “Making a purchase was not in my mind when I browsed
the website”; Cronbach's alpha = .83). As expected, participants
Design in the purchase condition scored significantly higher on the
purchase goal scale than those in the browsing condition, F(1,
The main experiment featured a 3 × 2 × 2 between-subjects 118) = 11.65, p b .01, Mpurchase = 5.86, SD = .98; Mbrowse = 5.13,
factorial design and included the same featured products as in the SD = 1.35. However, the influences of subcategory number, F(1,
pilot study. The first manipulated factor referred to the number of 118) = .51, p = .61, and choice uncertainty, F(1, 118) = .08,
subcategory options (extremely large = 18, moderately large = 9, p = .78, were appropriately insignificant for this purchase goal
small = 3), though this experiment only categorized the products scale. Also as expected, participants in the browsing condition
according to style (Table 1). The second manipulated factor scored significantly higher on the browsing goal scale than
focused on the respondents' processing goal (purchase versus those in the purchase condition, F(1, 118) = 23.71, p = .01,
browsing). Finally, the experiment classified participants as Mbrowse = 4.72, SD = 1.17, Mpurchase = 3.59, SD = 1.35, and the
having either high or low choice uncertainty, according to a influences of neither subcategory number, F(1, 118) = .39,
median split of their responses to a measure of choice uncertainty. p = .68, nor choice uncertainty, F(1, 118) = .44, p = .51, were
significant on the browsing goal scale.

Stimuli Development Choice Uncertainty

Similar to the pilot study, the number of actual products
remained constant across all experimental conditions, such that
the websites featured the same 90 bags but organized them into
different numbers of subcategories, with constant hierarchical
levels. The layout and content of the three websites also remained
constant, with identical hyperlinks to homepages, shopping
instructions, payment instructions, and contact information. Only
the organization of the product pages differed.
A four-item scale adopted from Laurent and Kapferer (1985)
measured choice uncertainty: “Whenever one buys bags, one
never really knows whether they are the ones that should have been
bought,” “When I face a big selection of bags, I always feel a bit at
a loss to make my choice,” “Choosing bags is rather complicated,”
and “When one purchases bags, one is never certain of one's
choice” (Cronbach's alpha = .88). The two groups, median split
according to their responses, differed significantly in choice
uncertainty ratings, F(1, 118) = 242.92, p = .01, ηp2 = .67,
 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168
Mhigh = 5.55, SD= .59, Mlow = 3.20, SD= 1.00, but not in their
product category expertise, according to Flynn and Goldsmith's
(1999) scale (Cronbach's alpha = .96), F(1, 118) = .51, p = .48,
ηp2 b .01, Mhigh = 2.99, SD = 1.27, Mlow = 2.82, SD = 1.46. There-
fore, expertise was not a confound for choice uncertainty.
Dependent Measures
The scales for perceived product variety, ease of navigation,
shopping pleasure, and attitudes toward the online stores were
the same as those in the pilot study. In addition, participants
rated the likelihood that they would make a purchase from the
online store, using three items: “If I needed to buy a bag right
now, I would be willing to make a purchase on this online
store,” “I am willing to make a purchase on this online store in
the near future,” and “I am willing to make a purchase on this
online store in the foreseeable future” (Cronbach's alpha = .89).
Results
An ANOVA revealed a significant main effect of the number
of subcategory options on perceived product variety (see
Table 2). As expected, the planned linear contrast was
significant, t (119) = 2.64, p = .01, which suggested that more
subcategory options increased perceived variety, consistent
with the findings of the pilot study. The large number (LN) of
subcategories (M = 4.25, SD = 1.12) prompted the highest level
of perceived variety, followed by the moderately large number
(MN) (M = 3.98, SD = .99) and then the small number (SN) of
subcategories (M = 3.57, SD = 1.13). The effect of the interaction
between subcategory number and choice uncertainty on
perceived variety was not significant; therefore, the influence
of the number of subcategories on perceived variety did not
vary across participants with high and low choice uncertainty.
With regard to the ease of navigation (H2a), the interaction
between subcategory number and choice uncertainty was
significant. As expected, only among those with low uncer-
tainty was the effect of subcategory option number significant,
according to Table 4. Planned contrasts showed that the ease of
navigation in the MN condition was significantly higher than
that in the SN condition, but ease of navigation in the MN and
LN conditions did not differ. Contrary to expectations though,
ease of navigation in the LN condition was significantly higher
Table 4
Results of simple effects tests and planned contrasts for the experiment.
High choice uncertainty
F p η2p SN MN
(1) (2)
Ease of Navigation .27 .76 .01 4.35 (.83) 4.14 (.98)
(H2a)
Shopping Pleasure 1.43 .25 .05 4.87 (.99) 4.36 (1.03) 4.76 (.76) 3.33 .04 .11 4.05 (1.00) 4.93 (1.22) 4.63 (1.06) t = 2.52
(H2b)
Online Store Attitudes 1.00 .37 .04 4.90 (.96) 4.52 (1.01) 4.82 (.87) 3.28 .05 .11 4.25 (.97) 5.00 (1.03) 4.88 (.93) t = 2.43
(H3a)
Purchase Intentions 1.82 .17 .06 3.87 (1.22) 3.02 (1.54) 3.41 (.94) 3.77 .03 .12 3.33 (1.13) 4.46 (1.30) 3.52 (1.69) t = 2.60
(H3b)
165
than in the SN condition, such that for those with low choice
uncertainty, moderately and extremely large numbers of
subcategory options proved more effective for facilitating
navigation than a small number. For those with high choice
uncertainty in contrast, increasing the subcategory options did
not improve the ease of navigation.
The interaction between subcategory number and choice
uncertainty also was significant for shopping pleasure (H2b).
Only for those low in choice uncertainty was the effect of
subcategory option number significant. The means supported an
inverted U-shaped pattern, and planned contrasts suggested that
shopping pleasure in the MN condition was greater than that in
the SN condition. Shopping pleasure also was higher in the MN
condition compared with the LN condition, but this difference
was not significant. Also as expected, shopping pleasure among
participants in the LN condition was not significantly higher
than that among people in the SN condition. Thus, for those
with low choice uncertainty, a moderately, but not extremely,
large number of subcategory options effectively evoked
shopping pleasure, compared with a small number of options.
For those with high choice uncertainty though, increasing the
number of subcategory options did not alter shopping pleasure.
With regard to online store attitudes (H3a), the interaction
between subcategory number and choice uncertainty again was
significant. As expected, only for those with low choice
uncertainty was the effect of subcategory option number
significant, with means following an inverted U-shaped pattern.
Store attitudes were significantly more favorable in the MN
condition than in the SN or LN conditions, though the latter
difference was not significant. Attitudes in the LN condition were
not significantly more favorable than in the SN condition. Thus
for those with low choice uncertainty, a moderately, but not
extremely, large number of subcategory options was more
effective for generating favorable online store attitudes than was
a small number of options, whereas for those with high choice
uncertainty, increasing the subcategory options did not enhance
attitudes.
Finally, the interaction between subcategory number and
choice uncertainty was significant for purchase intentions
(H3b). The effect of subcategory option number emerged only
for those with low choice uncertainty. The means followed an
inverted U-shaped pattern. Planned contrasts revealed that
purchase intentions in the MN condition were greater than those
Low choice uncertainty Planned contrasts
LN F p η2p SN MN LN 4 vs. 5 5 vs. 6 4 vs. 6
(3) (4) (5) (3)
4.29 (.64) 5.54 .01 .17 3.83 (.91) 4.46 (.88) 4.81 (.92)
t = 2 . 2 6 t = .87 t = 3.15
p = .03 p = .39 p = .01
t = .89 t = 1.54
p = .02 p = .38 p = .13.
t = .62 t = 1.74
p = .02 p = .54 p = .09.
t = 2.14 t = .27
p = .01 p = .04 p = .79.
166 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168
in the LN or SN conditions, but the difference between the SN
and LN conditions was not significant. Thus, as expected, for
participants with low choice uncertainty, a moderately large
number of subcategory options was most effective in generating
purchase intentions, compared with a small or extremely large
number, and for those with high choice uncertainty, the number
of subcategory options did not affect purchase intentions.
The three-way interaction of all the dependent variables was
not significant (see Table 2). Therefore, the effects of the
interaction between the number of subcategory options and
choice uncertainty held for both consumers with purchase goals
and those with browsing goals. Similar to the findings from the
pilot study, the ease of navigation and shopping pleasure
mediated the relationship between the number of subcategory
options and online store attitudes (Models 2a and 2b in Table 3).
Discussion
More subcategory options led to higher perceptions of product
variety, replicating the findings of the pilot study. Yet for ease of
navigation, shopping pleasure, online store attitudes, and future
purchase intentions, choice uncertainty also moderated the effects
of the number of subcategory options. Specifically, respondents
with low choice uncertainty considered websites easier to
navigate when the number of subcategory options increased
from 3 to 9 or 18. For shopping pleasure, online store attitudes,
and purchase intentions, the means followed an inverted U-
shaped pattern, such that the moderate number generated the most
favorable ratings. In contrast, consumers with high choice
uncertainty appeared unaffected by the number of subcategory
options. The purpose of the visit to the online store (buying versus
browsing) did not significantly influence the effects of the
interaction between choice uncertainty and the number of
subcategory options on the various outcome measures.
General Discussion
Findings and Contributions
By examining how categorizing the same number of products
differently can affect perceived variety in an online store, this study
demonstrates that simply placing products in different numbers of
categories (without increasing the actual number of products) can
influence consumers' shopping experiences, which in turn affect
their evaluations of the online store. These product categorization
effects were moderated by choice uncertainty, and the effects
generalized across both shopping and browsing contexts. They also
were robust whether the categorization focused on styles or fabrics.
Therefore, these findings shed light on how product categorization
works and influences consumer perceptions in online stores.
The findings from this study suggest that both utilitarian and
hedonic aspects of an experience mediate the effects of the
number of subcategory options. As expected, more subcategory
options enhanced both utilitarian (ease of navigation) and hedonic
(shopping pleasure) aspects of the online shopping experience, in
line with extant research that has suggested greater product
variety increases both utilitarian and hedonic satisfaction (Menon
and Kahn 1995; Tauber 1995) and that people engage in online
shopping because of both utilitarian and hedonic motives
(Childers et al. 2001). The findings regarding the mediating
roles of ease of navigation and shopping pleasure were consistent
across both the pilot study and the main experiment.
According to prior research, in a real-world retail setting,
some consumers prefer making choices from a large assortment,
whereas others prefer a small assortment (Chernev 2003b). The
current study has extended this research to an online setting and
indicates that individual difference variables (e.g., choice
uncertainty) also determine how people respond to different
product categorizations. Participants with high choice uncer-
tainty revealed no effect of the number of subcategory options
on shopping pleasure, online store attitudes, or purchase
intentions. For those with low choice uncertainty, the effects
of the number of subcategory options generally followed an
inverted U-shaped pattern though.
Implications for Practitioners
These findings have important implications for online
marketers, who can effectively manipulate perceived variety
simply by altering the categorization scheme—at presumably
minimal cost—and enjoy important benefits. Online marketers
would do well to avoid using too few as well as too many
categories. For bags categorized by style for example,
consumers with low choice uncertainty reported greater
shopping pleasure, better online store attitudes, and greater
future purchase intentions when the number of categories was
moderately large (9) than when it was small (3), but increasing
the category number to 18 either had no further effect or
decreased the intended benefit. Of the outcome variables
examined, the decline in future purchase intentions was most
significant from the 9- to the 18-category condition. These
results should encourage marketers to investigate carefully how
they can arrange their products to maximize profits.
Online marketers would also do well to take individual
differences into account. The benefits of more subcategory options
were more likely to be observed among consumers who felt more
certain about their choice and thus were less likely to be confused
by more options. Marketers need a thorough understanding of their
target audience; if the majority of their target consumers are
decisive about options in their product category, the utility of a
moderately large number of subcategory options should increase.
Future Research Directions
The choice hierarchy in this study consisted of two levels, but
products certainly could be organized into more than two levels.
It is not clear how many choice hierarchy levels consumers
might prefer, such as more levels with a few subcategories at
each level or just a few levels with more subcategory options at
each level. It is also not clear how this variation might affect
perceived product variety. Further research should explore these
questions.
Although buying versus browsing goals did not generate
significantly different responses, these results require some
 C. Chang / Journal of Interactive Marketing 25 (2011) 159–168
caution in their interpretation. In particular, consumers likely
browse online stores for different purposes, which demand more
exploration. For example, though the effects of the number of
subcategory options followed the same inverted U-shaped
patterns for the two shopping goals, the associated psychological
processes may differ. Those with a shopping goal, as opposed to a
browsing purpose, may weigh the ease of navigation more heavily
than shopping pleasure, whereas those with a browsing goal as
opposed to a shopping purpose may prioritize pleasure to a greater
extent than navigation ease when they develop store attitudes.
This difference deserves additional research attention.
Online shoppers often visit more than one store, whether
they plan to make a purchase or are just browsing. The influence
of competition among online stores on the effects of the number
of subcategory options remains uncertain. For example, when
consumers can visit several websites (instead of a single
website, as in this study), are they more attracted to those with
many subcategories, or does the larger number of subcategories
make it more difficult to find what they want, prompting them to
visit another website instead? It would be interesting to compare
websites with more versus fewer subcategories to discern which
attributes attract consumers and/or lead to higher consumer
satisfaction.
Further research also should build directly on the results
herein. Studies might investigate the effects of other individual
difference variables using the same framework. For example,
retailers that fail to match a shopper's expected level of
stimulation have been perceived as unpleasant (Mattila and
Wirtz 2006). High sensation seekers prefer complex visual web
designs; high need-for-cognition people to prefer websites with
verbal complexity (Martin, Sherrard, and Wentzel 2005).
Shoppers with these traits may respond more favorably than
others to larger numbers of subcategory options.
Limitations
The findings of this study must be interpreted with certain
limitations in mind. First, the use of student samples may
preclude generalizations to the general public. However, college
students are more likely to shop online than the general public,
so their responses to product categorization online should be of
great interest to marketers. Second, product categories likely
moderate online shopping responses, and this study examined
only a single category. Childers et al. (2001) show that for a
utilitarian online store, the usefulness of website features is a
stronger predictor of shoppers' attitudes toward the store,
whereas for a hedonic online store, enjoyment of those features
is the stronger predictor. Finally, the kind of subcategory
structure a consumer expects to see may influence the
effectiveness of the actual organization. For example, Morales
et al. (2005) find that congruency between a consumer's internal
categorization structure and the product layout in a store
enhances perceptions of variety. Despite these limitations
though, this paper is the first to explore perceived product
variety in an online setting, and thus, it has important
implications for online marketers and researchers.
167
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Chingching Chang (Ph.D., University of Wisconsin–Madison) is University
Chair Professor at National Chengchi University (Taiwan). Her research
interests include advertising effects and consumer behaviors. She has published
in many leading advertising and communication journals and won multiple
national research awards.