Life experience degree on line

ABSTRACT: In this research, two separate experiments investigate the effects of virtual direct experience (VDE) and the degree of digitalization of experiential product attributes on on-line ad message effectiveness (i.e., perceived risk, product evaluation, affect, and conation). In the first experiment, the message effectiveness of on-line advertisements (VDE/no VDE) is examined across two experience products differing in degree of digitizable experiential product attributes. In the second experiment, the same set of dependent variables is examined across three degrees of digitalization of experiential product attributes (low, medium, high) in relation to a single experience product category. Furthermore, the second experiment investigates the moderating effect of consumer product expertise on the main effect of the degree of digitalization. Findings suggest significant theoretical and managerial implications.

The World Wide Web has created a new communication environment for advertising campaigns, thus initiating a new era of firm-consumer interaction (Rust and Oliver 1994). Firms use advertising messages and direct experience (DE) as two common sources of information to communicate with consumers about products (Singh, Balasubramanian, and Chakraborty 2000). These two sources of information differ significantly in their ability to foster strongly held beliefs about search and experiential product attributes. Advertising has been found to be superior at communicating search attribute beliefs and DE has been found to be superior at fostering experiential attribute beliefs (Kempf and Laczniak 2001).

While advertising messages are capable of being easily communicated across a broad spectrum of media, DE has been somewhat limited, particularly in relation to experience products-products that are dominated by attributes that cannot be known until (limited) use of the product takes place (Klein 1998; Nelson 1974; Wright and Lynch 1995). This has been a substantial limitation for firms, as consumers use DE and advertising messages in a complementary fashion (Kempf and Eaczniak 2001).

The Internet offers firms the unique opportunity to digitalize experiential attributes in multimedia formats (Alba et al. 1997; Burke 1997; Hoffman and Novak 1996). The Internet has expanded consumer access to information and provided firms an opportunity to provide consumers additional layers of information (Rust and Oliver 1994). One of the key advantages of on-line advertising over traditional advertising is that it can proximate key characteristics of DE when promoting experience products.

Although researchers and organizations differ in their estimates, most agree that on-line advertising is developing rapidly along with changes in the way people communicate and conduct business (Steven and Gangadharbatla 2001). The present study, accordingly, explores the integration of digitalized direct experience, that is, virtual direct experience (VDE), into on-line advertising. This issue is important for both academics and practitioners in that the ability to integrate the delivery of experiential product attributes into an advertising context suggests unique theoretical and performance implications. The message effectiveness of on-line ads, varying in VDE related to the degree of digitalization of experiential attributes, and the moderating effect of consumer product expertise are thus investigated.

PRIOR RESEARCH AND CONCEPTUAL FRAMEWORK

Prior research indicates that advertisements and direct experience work in a complementary fashion (Deighton and Schindler 1988; Hoch and Ha 1986; Kempf and Smith 1998). Furthermore, research indicates that for experience products, direct experience influences recall, attitudes, and conation to a greater degree than do traditional advertisements (Singh, Balasubramanian, and Chakraborty 2000). The conceptual framework developed in this research is anchored by both of these insights.

Direct Experience (DE)

Direct experience (DE, i.e., product trial) has received considerable attention as a result of its effectiveness in stimulating positive consumer responses for experience products (e.g., Kempf and Smith 1998). DE is defined as a consumer's first usage experience with a product (Singh, Balasubramanian, and Chakraborty 2000). Previous studies of the effects of DE indicate that it influences brand beliefs, attitudes, and purchase intentions (e.g., Kempf and Smith 1998; Smith 1993; Smith and Swinyard 1982; Wright and Lynch 1995). The effectiveness of DE is derived from its ability to allow consumers firsthand evaluation of product claims, thus increasing consumers' confidence in their evaluations. However, research has yet to determine whether the superiority of DE in a traditional ad format in terms of facilitating consumers' evaluations, attitudes, and conations also holds true in the on-line venue, where the direct experience is simulated in a virtual direct experience (i.e., a simulated product experience in an on-line environment).

The conceptual framework presented in this study pertains only to experience products ?(as evaluative attributes for search products are as fully accessible in the on-line advertising domain as they are in the traditional advertising domain). Experiential product attributes are attributes that can be accessed only through (limited) use of the product (Kempf and Smith 1998; Klein 1998; Nelson 1974; Wright and Lynch 1995). Products that are dominated by experiential attributes are referred to as experience products and are best evaluated by consumers through firsthand experience (Kempf and Smith 1998; Klein 1998; Nelson 1974; Smith and Swinyard 1982; Wright and Lynch 1995).

Virtual Direct Experience (VDE)

The Internet is fundamentally different from traditional media in that it provides for two-way interactivity (Cho 1999; Huffman and Novak 1996). Interactivity and multimedia displays help to enhance consumer learning (Novak, Hoffman, and Yung 2000). Meeker (1997) describes the Internet as the only medium that allows consumers to interact with products, investigate further details, and immediately make purchases. For example, many on-line retailers provide interactivity through on-line product experiences (e.g., allowing a consumer to change clothes on a virtual model, rotate products), thus integrating the conveyance of experiential product attributes into on-line advertising.

Given the potential importance of on-line product experience in general, and on-line advertising in particular, the focus of this study is to investigate the effect of virtual direct experience (VDE). Virtual denotes concepts, activities, and organizations that are realized or carried out chiefly in an electronic medium, and tends to be used in reference to things that imitate their real-life equivalents. Thus, VDE is formally defined as the conveyance of experiential product attributes in an on-line simulation of a direct experience. It is important to note that similar to DE, VDE is employed to convey experiential product attributes to stimulate message effectiveness. Thus, similar to DE, VDE attempts to convey experiential product attributes. VDE only mimics DE, however, and is simulated by the computer via the Internet, that is, VDE is direct experience that is mediated by a virtual communication channel. Thus, the greatest difference between VDE and DE resides in the simulated conveyance of experiential product attributes. Hence, while VDE can approximate DE, its ability to provide an exact replication of a DE experience is influenced by the ability of the product's experiential attributes to be digitized and conveyed on-line. As such, VDE and DE diverge in effectiveness to the greatest extent when a product's complement of experiential attributes cannot be fully conveyed through the given channel.

Interaction Between Advertising and Direct Experience