Your browser does not support the PubReader view.
Go to this page to see a list of supporting browsers.
Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 52, No. 3, pp.715-733
ISSN: 1226-1874 (Print)
Print publication date 30 Jun 2023
Received 10 Dec 2022 Revised 01 May 2023 Accepted 01 May 2023
DOI: https://doi.org/10.17287/kmr.2023.52.3.715

The Effect of Keyword Selection of e-commerce Platform Sellers On Sales

Jungwon Lee ; Jaehyun You
(First Author) Sejong Management Research Institute, Korea University d2ljw510@korea.ac.kr
(Corresponding Author) Division of Convergence Business, Korea University hyuni22@korea.ac.kr
e-커머스 플랫폼 판매자의 키워드 선택이 매출액에 미치는 영향


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Sellers on e-commerce platforms can increase sales opportunities by selecting keywords that can effectively expose their products to potential consumers. However, related literature has not sufficiently studied the effect of keyword characteristics on sellers' sales. In particular, most studies on keyword characteristics have been conducted in the context of search advertising. Drawing on the shopping goal theory, this study investigated the relationship between keyword characteristics and seller performance on e-commerce platforms. Empirical analysis was conducted using a dataset of 24,907 keywords collected from 30 product categories on Amazon, a representative global e-commerce platform. Regression analysis revealed that keyword readability, customer characteristic keywords, and brand characteristic keywords had a positive effect on seller sales, while keyword specificity had a negative effect on sales.

Keywords:

e-commerce platform, keyword characteristics, shopping goal theory, seller

References

  • Agarwal, A., K. Hosanagar, and M. D. Smith(2011), “Location, location, location: An analysis of profitability of position in online advertising markets,” Journal of Marketing Research, 48(6), pp.1057-1073. [https://doi.org/10.1509/jmr.08.0468]
  • Aleti, T., J. I. Pallant, A. Tuan, and T. van Laer(2019), “Tweeting with the stars: Automated text analysis of the effect of celebrity social media communications on consumer word of mouth,” Journal of Interactive Marketing, 48, pp.17-32. [https://doi.org/10.1016/j.intmar.2019.03.003]
  • Amaldoss, W., K. Jerath, and A. Sayedi(2016), “Keyword management costs and ‘broad match’ in sponsored search advertising,” Marketing Science, 35(2), pp.259-274. [https://doi.org/10.1287/mksc.2015.0919]
  • Animesh, A., S. Viswanathan, and R. Agarwal(2011), “Competing ‘creatively’ in sponsored search markets: The effect of rank, differentiation strategy, and competition on performance,” Information Systems Research, 22(1), pp.153-169. [https://doi.org/10.1287/isre.1090.0254]
  • Atkinson, G., C. Driesener, and D. Corkindale(2014), “Search engine advertisement design effects on click-through rates,” Journal of Interactive Advertising, 14(1), pp.24-30. [https://doi.org/10.1080/15252019.2014.890394]
  • Bockstedt, J. and K. H. Goh(2011), “Seller strategies for differentiation in highly competitive online auction markets,” Journal of Management Information Systems, 28(3), pp.235-268. [https://doi.org/10.2753/MIS0742-1222280307]
  • Chaudhuri, A. and M. B. Holbrook(2001), “The chain of effects from Brand Trust and brand affect to brand performance: The Role of Brand Loyalty,” Journal of Marketing, 65(2), pp.81-93. [https://doi.org/10.1509/jmkg.65.2.81.18255]
  • de Haan, E., T. Wiesel, and K. Pauwels(2016), “The effectiveness of different forms of online advertising for purchase conversion in a multiple-channel attribution framework,” International Journal of Research in Marketing, 33(3), pp.491-507. [https://doi.org/10.1016/j.ijresmar.2015.12.001]
  • de Reuver, M., C. Sørensen, and R. C. Basole(2018), “The Digital Platform: A Research Agenda,” Journal of Information Technology, 33(2), pp.124-135. [https://doi.org/10.1057/s41265-016-0033-3]
  • Dotson, J. P., R. R. Fan, E. M. D. Feit, J. D. Oldham, and Y. H. Yeh(2017), “Brand attitudes and search engine queries,” Journal of Interactive Marketing, 37(1), pp.105-116. [https://doi.org/10.1016/j.intmar.2016.10.002]
  • Drèze, X. and F. X. Hussherr(2003), “Internet advertising: Is anybody watching?,” Journal of Interactive Marketing, 17(4), pp.8-23. [https://doi.org/10.1002/dir.10063]
  • Drèze, X. and F. Zufryden(2004), “Measurement of online visibility and its impact on internet traffic,” Journal of Interactive Marketing, 18(1), pp.20-37. [https://doi.org/10.1002/dir.10072]
  • Du, X., M. Su, X. M. Zhang, and X. Zheng(2017), “Bidding for multiple keywords in sponsored search advertising: Keyword categories and match types,” Information Systems Research, 28(4), pp.711-722. [https://doi.org/10.1287/isre.2017.0724]
  • Edelman, B., M. Ostrovsky, and M. Schwarz(2007), “Internet advertising and the generalized second-price auction: Selling billions of dollars worth of keywords,” The American Economic Review, 97(1), pp.242-259. [https://doi.org/10.1257/aer.97.1.242]
  • Eisenmann, T., G. Parker, and M. Van Alstyne(2011), “Platform envelopment,” Strategic Management Journal, 32(12), pp.1270-1285. [https://doi.org/10.1002/smj.935]
  • Ghose, A. and S. Yang(2009), “An empirical analysis of search engine advertising: Sponsored search in Electronic Markets,” Management Science, 55(10), pp.1605-1622. [https://doi.org/10.1287/mnsc.1090.1054]
  • Hoban, P. R. and R. E. Bucklin(2015), “Effects of internet display advertising in the purchase funnel: Model-based insights from a randomized field experiment,” Journal of Marketing Research, 52(3), pp.375-393. [https://doi.org/10.1509/jmr.13.0277]
  • Hong, H., D. Xu, G. A. Wang, and W. Fan(2017), “Understanding the determinants of online review helpfulness: A Meta-analytic investigation,” Decision Support Systems, 102), pp.1-11. [https://doi.org/10.1016/j.dss.2017.06.007]
  • Huang, P., N. H. Lurie, and S. Mitra(2009), “Searching for experience on the web: An empirical examination of consumer behavior for search and experience goods,” Journal of Marketing, 73(2), pp.55-69. [https://doi.org/10.1509/jmkg.73.2.55]
  • Huang, Q., B. Shao, X. Li, T. He, J. S. Liu, and X. Li(2021), “The challenge of a prominent position: Decomposing shopping goals in sponsored search advertising,” Journal of Advertising, 52(1), pp.1-18.
  • Humphreys, A. and R. J. H. Wang(2018), “Automated Text Analysis for Consumer Research,” Journal of Consumer Research, 44(6), pp.1274-1306.
  • Im, I., J. Jun, W. Oh, and S. O. Jeong(2016), “Dealseeking versus brand-seeking: search behaviors and purchase propensities in sponsored search platforms,” MIS Quarterly, 40(1), pp.187-203.
  • Jansen, B.J. and M. Resnick(2006), “An examination of searcher's perceptions of nonsponsored and sponsored links during ecommerce web searching,” Journal of the American Society for Information Science and Technology, 57(14), pp.1949-1961. [https://doi.org/10.1002/asi.20425]
  • Jean, R. J. B., D. Kim, K. Z. Zhou, and S. T. Cavusgil(2021), “E-platform use and exporting in the context of alibaba: A signaling theory perspective,” Journal of International Business Studies, 52, pp.1501-1528. [https://doi.org/10.1057/s41267-020-00396-w]
  • Jerath, K., L. Ma, Y. H. and Park(2014), “Consumer click behavior at a search engine: The role of keyword popularity,” Journal of Marketing Research, 51(4), pp.480-486. [https://doi.org/10.1509/jmr.13.0099]
  • Jerath, K., L. Ma, Y. H. Park, and K. Srinivasan(2011), “A ‘position paradox’ in sponsored search auctions,” Marketing Science, 30(4), pp.612-627. [https://doi.org/10.1287/mksc.1110.0645]
  • Klapdor, S., E. M. Anderl, F. von Wangenheim, and J. H. Schumann(2014), “Finding the right words: The influence of keyword characteristics on performance of paid search campaigns,” Journal of Interactive Marketing, 28(4), pp.285-301. [https://doi.org/10.1016/j.intmar.2014.07.001]
  • Krishnamurthi, L. and S. P. Raj(1991), “An empirical analysis of the relationship between brand loyalty and consumer price elasticity,” Marketing Science, 10(2), pp.172-183. [https://doi.org/10.1287/mksc.10.2.172]
  • Lee, L. and D. Ariely(2006), “Shopping goals, goal concreteness, and conditional promotions,” Journal of Consumer Research, 33(1), pp.60-70. [https://doi.org/10.1086/504136]
  • Li, H., Y. Fang, K. H. Lim, and Y. Wang(2019), “Platform-based function repertoire, reputation, and sales performance of E-Marketplace Sellers,” MIS Quarterly, 43(1), pp.207-236. [https://doi.org/10.25300/MISQ/2019/14201]
  • Lowrey, T. M.(2006), “The relation between script complexity and commercial memorability,” Journal of Advertising, 35(3), pp.7-15. [https://doi.org/10.2753/JOA0091-3367350301]
  • Lu, X. and X. Zhao(2014), “Differential effects of keyword selection in search engine advertising on direct and indirect sales,” Journal of Management Information Systems, 30(4), pp.299-326. [https://doi.org/10.2753/MIS0742-1222300411]
  • Manchanda, P., J. P. Dubé, K. Y. Goh, and P.K. Chintagunta(2006), “The effect of banner advertising on internet purchasing,” Journal of Marketing Research, 43(1), pp.98-108. [https://doi.org/10.1509/jmkr.43.1.98]
  • Narayanan, S. and K. Kalyanam(2015), “Position effects in search advertising and their moderators: A regression discontinuity approach,” Marketing Science, 34(3), pp.388-407. [https://doi.org/10.1287/mksc.2014.0893]
  • Ou, C. X. J. and K. C. C. Chan(2014), “Developing a competitive edge in electronic markets via institutional and social based quality signaling mechanisms,” Information & Management, 51(5), pp.532-540. [https://doi.org/10.1016/j.im.2014.04.002]
  • Park, S. and J. L. Nicolau(2015), “Asymmetric effects of online consumer reviews,” Annals of Tourism Research, 50, pp.67-83. [https://doi.org/10.1016/j.annals.2014.10.007]
  • Perrin, N.(2019). “Google Maintains Wide Lead in Net US Search Ad Revenues.” eMarketer, November 18. Accessed November 18, 2019. https://www.emarketer.com/content/google-maintains-wide-lead-in-net-us-search-ad-revenues/, .
  • Pavlou, P. A., H. Liang, and Y. Xue(2007), “Understanding and mitigating uncertainty in online exchange relationships: A principal-agent perspective,” MIS Quarterly, 31(1), pp.105-136. [https://doi.org/10.2307/25148783]
  • Ramaboa, K. K. and P. Fish(2018), “Keyword length and matching options as indicators of search intent in sponsored search,” Information Processing & Management, 54(2), pp.175-183. [https://doi.org/10.1016/j.ipm.2017.11.003]
  • Rao, A. R. and K. B. Monroe(1989), “The effect of price, brand name, and store name on buyers' perceptions of product quality: An integrative review,” Journal of Marketing Research, 26(3), pp.351-357. [https://doi.org/10.1177/002224378902600309]
  • Rutz, O. J., and R. E. Bucklin(2011), “From generic to branded: A model of spillover in paid search advertising,” Journal of Marketing Research, 48(1), pp.87-102. [https://doi.org/10.1509/jmkr.48.1.87]
  • Rutz, O. J., R. E. Bucklin, and G. P. Sonnier(2012), “A latent instrumental variables approach to modeling keyword conversion in paid search advertising,” Journal of Marketing Research, 49(3), pp.306-319. [https://doi.org/10.1509/jmr.10.0354]
  • Smith, E. A. and R. J. Senter(1967), Automated Readability Index, Aerospace Medical Research Laboratories, Aerospace Medical Division, Air Force Systems Command.
  • Tan, B., S. Pan, X. Lu, and L. Huang(2015), “The role of is capabilities in the development of multi-sided platforms: The Digital Ecosystem Strategy of Alibaba.com,” Journal of the Association for Information Systems, 16(4), pp.248-280. [https://doi.org/10.17705/1jais.00393]
  • Wang, F. and L. Vaughan(2014), “Firm web visibility and its Business Value,” Internet Research, 24(3), pp.292-312. [https://doi.org/10.1108/IntR-01-2013-0016]
  • West, P. M.(1996), “Predicting preferences: An examination of agent learning,” Journal of Consumer Research, 23(1), pp.68. [https://doi.org/10.1086/209467]
  • Wilson, T. D.(2000), “Human information behavior,” Informing Science, 3(2), pp.49-55. [https://doi.org/10.28945/576]
  • Xu, L., J. Chen, and A. Whinston(2011), “Price competition and endogenous valuation in search advertising,” Journal of Marketing Research, 48(3), pp.566-586. [https://doi.org/10.1509/jmkr.48.3.566]
  • Zhu, F. and M. Iansiti(2011), “Entry into platform-based markets,” Strategic Management Journal, 33(1), pp.88-106. [https://doi.org/10.1002/smj.941]

∙ The author Jungwon Lee is currently a research professor at the Sejong Management Research Institute, Korea University. He obtained his master's degree in e-Business from Korea University and his Ph.D. in Marketing from the Department of Business Administration at Korea University. His main research interest is in Online Consumer Behavior.

∙ The author Jaehyun You is currently an associate professor in Division of Convergence Business at Korea University. He obtained his bachelor's degree in Economics, master's degree in Business Administration, and Ph.D. in Business Administration from Korea University. His main research interests include High Tech Product Adoption & Diffusion Strategy, Omni-Channel Marketing Strategy, and Consumer Behavior.