A Comparative Analysis of Consumption: Evidence from a Cultural Goods Market
Daniel Kaimann; Joe Cox
This study uniquely employs a fuzzy-set qualitative comparative analysis (fsQCA) technique to account for complex relationships in consumption. The fsQCA technique assumes that relationships are based on a set&ndash:subset relationship. This assumption is fundamental when decision-makers are affected by information asymmetry and are, thus, required to jointly evaluate the credibility and reliability of a range of external signals. This issue also affects consumers in markets for cultural goods, where the quality of products is not known with certainty in advance of the purchase decision. Our study uses fsQCA to establish the effect of different quality signals on consumption in the US market for video game software. Our results show that reviews from professional critics alongside brand extension and multi-platform release strategies act as signals of product quality and, therefore, lead to high sales performance.
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