Do Sellers Benefit from Sponsored Product Listings? Evidence from an Online Marketplace

References

• Abhishek V, Jerath K, Sharma S (2023) The impact of retail media on online marketplaces: Insights from a field experiment. Working paper, University of California, Irvine, CA.Google Scholar
• Agarwal A, Hosanagar K, Smith MD (2011) Location, location, location: An analysis of profitability of position in online advertising markets. J. Marketing Res. 48(6):1057–1073.Crossref, Google Scholar
• Aribarg A, Schwartz EM (2020) Native advertising in online news: Trade-offs among clicks, brand recognition, and website trustworthiness. J. Marketing Res. 57(1):20–34.Crossref, Google Scholar
• Athey S, Gans JS (2010) The impact of targeting technology on advertising markets and media competition. Amer. Econom. Rev. 100(2):608–613.Crossref, Google Scholar
• Bagwell K (2007) The economic analysis of advertising. Armstrong M, Porter R, eds. Handbook of Industrial Organization, vol. 3 (Elsevier, Amsterdam), 1701–1844.Google Scholar
• Bleier A, Harmeling CM, Palmatier RW (2019) Creating effective online customer experiences. J. Marketing 83(2):98–119.Crossref, Google Scholar
• Campbell MC, Kirmani A (2000) Consumers’ use of persuasion knowledge: The effects of accessibility and cognitive capacity on perceptions of an influence agent. J. Consumer Res. 27(1):69–83.Crossref, Google Scholar
• Chaiken S, Maheswaran D (1994) Heuristic processing can bias systematic processing: Effects of source credibility, argument ambiguity, and task importance on attitude judgment. J. Personality Soc. Psych. 66(3):460–473.Crossref, Google Scholar
• Chaiken S, Liberman A, Eagly AH (1989) Heuristic and systematic processing within and beyond the persuasion context. Uleman JS, Bargh JA, eds. Unintended Thought (Guilford, New York), 212–252.Google Scholar
• Chen Y, He C (2011) Paid placement: Advertising and search on the internet. Econom. J. 121(556):309–328.Google Scholar
• Chen J, Fan M, Li M (2016) Advertising vs. brokerage model for online trading platforms. MIS Quart. 40(3):575–596.Crossref, Google Scholar
• Chevalier JA, Mayzlin D (2006) The effect of word of mouth on sales: Online book reviews. J. Marketing Res. 43(3):345–354.Crossref, Google Scholar
• Clemons EK (2009) Business models for monetizing internet applications and websites: Experience, theory, and predictions. J. Management Inform. Systems 26(2):15–41.Crossref, Google Scholar
• Compiani G, Lewis G, Peng S, Wang P (2022) Online search and product rankings: A double logit approach. Working paper, University of Chicago, Chicago, IL.Google Scholar
• Dréze X, Hussherr F-X (2003) Internet advertising: Is anybody watching? J. Interactive Marketing 17(4):8–23.Crossref, Google Scholar
• Ford GT, Smith DB, Swasy JL (1990) Consumer skepticism of advertising claims: Testing hypotheses from economics of information. J. Consumer Res. 16(4):433–441.Crossref, Google Scholar
• Friestad M, Wright P (1994) The persuasion knowledge model: How people cope with persuasion attempts. J. Consumer Res. 21(1):1–31.Crossref, Google Scholar
• Godes D, Mayzlin D (2004) Using online conversations to study word-of-mouth communication. Marketing Sci. 23(4):545–560.Link, Google Scholar
• He C, Chen Y (2006) Managing e-marketplace: A strategic analysis of nonprice advertising. Marketing Sci. 25(2):175–187.Link, Google Scholar
• Hervet G, Guérard K, Tremblay S, Chtourou MS (2011) Is banner blindness genuine? Eye tracking internet text advertising. Appl. Cognitive Psych. 25(5):708–716.Crossref, Google Scholar
• Hong Y, Pavlou PA (2014) Product fit uncertainty in online markets: Nature, effects, and antecedents. Inform. Systems Res. 25(2):328–344.Link, Google Scholar
• Huang Y, Morozov I (2022) Video advertising by Twitch influencers. Working paper, University of Rochester, Rochester, NY.Google Scholar
• Huang P, Lurie NH, Mitra S (2009) Searching for experience on the web: An empirical examination of consumer behavior for search and experience goods. J. Marketing 73(2):55–69.Crossref, Google Scholar
• Hui X, Liu M (2022) Quality certificates alleviate consumer aversion to sponsored search advertising. Working paper, Washington University in St. Louis, St. Louis.Google Scholar
• Isaac MS, Grayson K (2017) Beyond skepticism: Can accessing persuasion knowledge bolster credibility? J. Consumer Res. 43(6):895–912.Google Scholar
• Jain SP, Posavac SS (2001) Prepurchase attribute verifiability, source credibility, and persuasion. J. Consumer Psych. 11(3):169–180.Crossref, Google Scholar
• Jerath K, Ma L, Park Y-H, Srinivasan K (2011) A “position paradox” in sponsored search auctions. Marketing Sci. 30(4):612–627.Link, Google Scholar
• Jeziorski P, Moorthy S (2018) Advertiser prominence effects in search advertising. Management Sci. 64(3):1365–1383.Link, Google Scholar
• Kim Y, Krishnan R (2015) On product-level uncertainty and online purchase behavior: An empirical analysis. Management Sci. 61(10):2449–2467.Link, Google Scholar
• Kirmani A, Campbell MC (2004) Goal seeker and persuasion sentry: How consumer targets respond to interpersonal marketing persuasion. J. Consumer Res. 31(3):573–582.Crossref, Google Scholar
• Klein B, Leffler KB (1981) The role of market forces in assuring contractual performance. J. Political Econom. 89(4):615–641.Crossref, Google Scholar
• Liebeskind J, Rumelt RP (1989) Markets for experience goods with performance uncertainty. RAND J. Econom. 20(4):601–621.Crossref, Google Scholar
• Ma Z, Liu X, Hossain T (2013) Effect of sponsored search on consumer trust and choice. Internat. J. Electronic Bus. Management 11(4):227–237.Google Scholar
• Mayzlin D (2006) Promotional chat on the internet. Marketing Sci. 25(2):155–163.Link, Google Scholar
• Moshary S (2021) Sponsored search in equilibrium: Evidence from two experiments. Working paper, University of California, Berkeley, CA.Google Scholar
• Narayanan S, Kalyanam K (2015) Position effects in search advertising and their moderators: A regression discontinuity approach. Marketing Sci. 34(3):388–407.Link, Google Scholar
• Nelson P (1970) Information and consumer behavior. J. Political Econom. 78(2):311–329.Crossref, Google Scholar
• Nelson P (1974) Advertising as information. J. Political Econom. 82(4):729–754.Crossref, Google Scholar
• Pavlou PA, Liang H, Xue Y (2007) Understanding and mitigating uncertainty in online exchange relationships: A principal-agent perspective. MIS Quart. 31(1):105–136.Crossref, Google Scholar
• Petty RE, Cacioppo JT (1986) Communication and Persuasion: Central and Peripheral Routes to Persuasion (Springer, New York).Crossref, Google Scholar
• Petty RE, Cacioppo JT, Goldman R (1981) Personal involvement as a determinant of argument-based persuasion. J. Personality Soc. Psych. 41(5):847–855.Crossref, Google Scholar
• Rallabandi KC (2022) Consumer perceptions of sponsored listing and their impact on online marketplaces. PhD thesis, University of California, Los Angeles.Google Scholar
• Sahni NS, Nair HS (2020a) Does advertising serve as a signal? Evidence from a field experiment in mobile search. Rev. Econom. Stud. 87(3):1529–1564.Crossref, Google Scholar
• Sahni NS, Nair HS (2020b) Sponsorship disclosure and consumer deception: Experimental evidence from native advertising in mobile search. Marketing Sci. 39(1):5–32.Link, Google Scholar
• Sahni NS, Zhang C (2022) Are consumers averse to sponsored messages? The role of search advertising in information discovery. Working paper, Stanford University, Stanford, CA.Google Scholar
• Telser LG (1980) A theory of self-enforcing agreement. J. Bus. 53(1):27–44.Crossref, Google Scholar
• Tormala ZL, Clarkson JJ (2007) Assimilation and contrast in persuasion: The effects of source credibility in multiple message situations. Personality Soc. Psych. Bull. 33(4):559–571.Crossref, Google Scholar
• Wang P, Xiong G, Yang J (2019) Serial position effects on native advertising effectiveness: Differential results across publisher and advertiser metrics. J. Marketing 83(2):82–97.Crossref, Google Scholar
• Weathers D, Sharma S, Wood SL (2007) Effects of online communication practices on consumer perceptions of performance uncertainty for search and experience goods. J. Retailing 83(4):393–401.Crossref, Google Scholar
• West PM, Broniarczyk SM (1998) Integrating multiple opinions: The role of aspiration level on consumer response to critic consensus. J. Consumer Res. 25(1):38–51.Crossref, Google Scholar
• Zhang Z, Kwark Y, Raghunathan S (2020) Role of consumer targeting in e-commerce marketplaces: Sponsored vs. organic product listing. Working paper, University of Texas, Dallas.Google Scholar