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Frontiers of Business Research in China

ISSN 1673-7326

ISSN 1673-7431(Online)

CN 11-5746/F

Postal Subscription Code 80-977

Front. Bus. Res. China    2016, Vol. 10 Issue (1) : 1-18    https://doi.org/10.3868/s070-005-016-0001-2
Orginal Article
The Dynamics of Online Purchase Visits: Inertia or Switching?
Zelin Zhang1(),Xia Wang2(),Peter T. L. Popkowski Leszczyc3(),Xiao Zuo4()
1. School of Business, Renmin University of China, Beijing 100872, China
2. School of Business, Renmin University of China, Beijing 100872, China
3. School of Business, University of Alberta, Edmonton, AB, T6G 2R6, Canada
4. Baidu Marketing Research Institute, Beijing 100085, China
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Abstract

This paper studies the dynamics of online purchase patterns, focusing on the impact of the channel used on conversion probability, as well as the transition of channel use over time. A novel data set from a major Chinese online travel agency is used for analysis, consisting of four months of data with 24,337 store visits through three types of channels: direct visit, search advertising and referral. Results of a Bayesian multinomial logit model show that the search channel significantly affects consumers’ conversion probability, and show a high degree of inertia in channel use. This finding contrasts sharply with suggestions of previous research that most future purchases will converge to the direct-visit channel.

Keywords conversion probability      direct visit      search engine      referral     
Issue Date: 12 April 2016
 Cite this article:   
Zelin Zhang,Xia Wang,Peter T. L. Popkowski Leszczyc, et al. The Dynamics of Online Purchase Visits: Inertia or Switching?[J]. Front. Bus. Res. China, 2016, 10(1): 1-18.
 URL:  
https://academic.hep.com.cn/fbr/EN/10.3868/s070-005-016-0001-2
https://academic.hep.com.cn/fbr/EN/Y2016/V10/I1/1
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