Information Cascades and Online Shopping: A Cross-Cultural Comparative Study in China and the United States

Qihua Liu, Binqi Zhang, Li Wang, Xiaoyu Zhang, Yiran Li

Source Title: Journal of Global Information Management (JGIM)29(3)

ISSN: 1062-7375|EISSN: 1533-7995|EISBN13: 9781799859024|DOI: 10.4018/JGIM.2021050102

MLA

Liu, Qihua, et al. "Information Cascades and Online Shopping: A Cross-Cultural Comparative Study in China and the United States." JGIM vol.29, no.3 2021: pp.26-45. http://doi.org/10.4018/JGIM.2021050102

APA

Liu, Q., Zhang, B., Wang, L., Zhang, X., & Li, Y. (2021). Information Cascades and Online Shopping: A Cross-Cultural Comparative Study in China and the United States. Journal of Global Information Management (JGIM), 29(3), 26-45. http://doi.org/10.4018/JGIM.2021050102

Chicago

Liu, Qihua, et al. "Information Cascades and Online Shopping: A Cross-Cultural Comparative Study in China and the United States," Journal of Global Information Management (JGIM) 29, no.3: 26-45. http://doi.org/10.4018/JGIM.2021050102

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Abstract

This study investigates and compares the impact of information cascades on online shopping behaviors in China and the United States. In particular, the role of information cascades in moderating the effect of price discounts has been examined and cross-culturally compared. To do so, two 122-day panel data sets were collected from two separate online flagship stores selling a same brand of sports shoes on Tmall.com and eBay.com. The results show that product ranking positively influences the product sales in the online shopping market, which follows the predicted results achieved in information cascades studies. Moreover, information cascades are more prominent for Chinese consumers than for American consumers. The findings also suggest that information cascades have moderated the impact of price discounts on online purchase behavior. However, this moderating effect is also influenced by cultural orientation of online customers. The findings are important from not only a theoretical perspective but also a managerial one.