Online Consumers’ Responses to Deal Popularity as an Extrinsic Cue

It is found that deal popularity influences service quality expectations for credence services, but not experience services.

Abstract

Deal popularity indicates the popularity of a product or service within a specific deal duration and is being used by many e-tailers in their websites/apps. While deal popularity is receiving increasing attention by academics and practitioners alike, its effect as an extrinsic cue remains under-researched. Using an experimental design, this study investigates the effect of deal popularity on expected service quality in an e-tailing environment. It is found that deal popularity influences service quality expectations for credence services, but not experience services. High deal popularity positively influences consumers’ intention to purchase and willingness to recommend credence services. E-tailers of services need to pay attention to deal popularity displayed for credence services and leverage on the positive effect it has on consumers.