Does diversity facilitate consumer decisions: a comparative perspective based on single-category versus multi-category products

Abstract

Purpose

This study aims to explore the opposite effects of single-category versus multi-category products information diversity on consumer decision making. Further, the authors investigate the moderating role of three categories of visitors – direct, hesitant and hedonic – in the relationship between product information diversity and consumer decision making.

Design/methodology/approach

The research utilizes a sample of 1,101,062 product click streams from 4,200 consumers. Visitors are clustered using the k-means algorithm. The diversity of information recommendations for single and multi-category products is characterized using granularity and dispersion, respectively. Empirical analysis is conducted to examine their influence on the two-stage decision-making process of heterogeneous online visitors.

Findings

The study reveals that the impact of recommended information diversity on consumer decision making differs significantly between single-category and multiple-category products. Specifically, information diversity in single-category products enhances consumers' click and purchase intention, while information diversity in multiple-category products reduces consumers' click and purchase intention. Moreover, based on the analysis of online visiting heterogeneity, hesitant, direct and hedonic features enhance the positive impact of granularity on consumer decision making; while direct features exacerbate the negative impact of dispersion on consumer decision making.

Originality/value

First, the article provides support for studies related to information cocoon. Second, the research contributes evidence to support the information overload theory. Third, the research enriches the field of precision marketing theory.

Citation

Dong, X., Tu, H., Zhu, H., Liu, T., Zhao, X. and Xie, K. (2024), "Does diversity facilitate consumer decisions: a comparative perspective based on single-category versus multi-category products", Asia Pacific Journal of Marketing and Logistics, Vol. 36 No. 4, pp. 936-956. https://doi.org/10.1108/APJML-05-2023-0395