Who seeks a surprise box? Predictors of consumers’ use of fashion and beauty subscription-based online services (SOS)

Hongjoo Woo, Bharath Ramkumar

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

Subscription-based online services (SOS), the e-businesses that provide periodic delivery of a customized box of merchandise to consumers, have become a $5 billion industry with over 2000 SOS retailers in the United States. This new method of online shopping that removes consumers’ responsibility to select merchandise and visit stores is substantially changing consumers’ consumption habits and, further, their lifestyles. However, there is little information about who are the target customers of such SOS, and what consumer characteristics predict consumers’ use of SOS. This study surveyed 385 American consumers focusing on fashion and beauty SOS. Results revealed that SOS users are more likely to be female with high level of e-tailer trust and fashion consciousness. Age and exploratory product acquisition tendencies of consumers had no significant influence. Both supported and unsupported hypotheses testing results suggest implications regarding potential target market strategies to SOS retailers, and provide a better understanding of consumers who have used this new, effortless shopping method, for consumer researchers.

Original languageEnglish
Pages (from-to)121-130
Number of pages10
JournalJournal of Retailing and Consumer Services
Volume41
DOIs
Publication statusPublished - 2018 Mar 1

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Online services
Subscription
Surprise
Predictors
Retailers
Target markets
Lifestyle
Hypothesis testing
Electronic business
Online shopping
Habit
Industry
Shopping
Consciousness
Market strategy
Consumer responsibility

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

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abstract = "Subscription-based online services (SOS), the e-businesses that provide periodic delivery of a customized box of merchandise to consumers, have become a $5 billion industry with over 2000 SOS retailers in the United States. This new method of online shopping that removes consumers’ responsibility to select merchandise and visit stores is substantially changing consumers’ consumption habits and, further, their lifestyles. However, there is little information about who are the target customers of such SOS, and what consumer characteristics predict consumers’ use of SOS. This study surveyed 385 American consumers focusing on fashion and beauty SOS. Results revealed that SOS users are more likely to be female with high level of e-tailer trust and fashion consciousness. Age and exploratory product acquisition tendencies of consumers had no significant influence. Both supported and unsupported hypotheses testing results suggest implications regarding potential target market strategies to SOS retailers, and provide a better understanding of consumers who have used this new, effortless shopping method, for consumer researchers.",
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