Delivery and Payment Options as Antecedents to Enhanced Online Retailing

Kevin J. Shanahan
Barbara Ross-Wooldridge
Charles M. Hermans, Missouri State University

Abstract

We first measure attitudes toward a product and attitudes toward product quality when an unknown brand is associated with a well-known and trusted co-brand in the form of payment and delivery options; employing a classic co-branding strategy. Theory suggests that association with a trusted brand should lead to improved positive assessment of an unknown brand. Results suggest the popular belief that trusted brands improve respondents’ assessments of unknown brands through a co-branding strategy may not be supported when there is a restriction on choice of payment and delivery options. That is, when including only a limited number of co-brands, brand associations may give the perception of restricted choice, leading to a lessened level of trust in the co-brand. We then repeat the study using a known branded product and known branded delivery and payment methods. Results show no difference in consumer perceptions between no cobrand and a full complement of cobrands. However, a restricted set of payment and delivery options leads to a more negative attitude toward the product and product quality.