Perceived effectiveness of recommendation agent routines: search vs. experience goods

Aggarwal, Praveen; Vaidyanathan, Rajiv

doi:10.1504/ijima.2005.007503

Cited by 28 publications

(42 citation statements)

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“…Thus, this view overlooks the phenomenological aspects of information such as social and emotional features. Such aspects of information have shown to be important to consumers when purchasing especially experiential products, like health care product [36], [13], [1]. In [41] examined consumers' information channel choice behavior by adopting a cost-benefit approach.…”

Section: Perceived Quality On Online Health Informationmentioning

confidence: 99%

Exploring Antecedents of Consumers' Willingness to Depend on E-Health Information

Oh¹

2012

International Journal of Contents

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Section: Perceived Quality On Online Health Informationmentioning

confidence: 99%

Exploring Antecedents of Consumers' Willingness to Depend on E-Health Information

Oh¹

2012

International Journal of Contents

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“…H1: Users' preference for products collected through SNS has a positive effect on sales Another perspective of understanding the influence of recommendation systems is that the impact can differ across various product categories. Especially since feedback systems exist to reducing quality-uncertainty of products, classification for search, experience, and credence goods/services are interesting topics in this area [2,25,46]. For example, consumers have more difficulty obtaining information about the quality of experienceproducts before use than search-products, and are more affected by the existence of reviews from other consumers/multimedia that enable consumers to interact with products [25].…”

Section: Empirical Analysis 31 Hypothesesmentioning

confidence: 99%

An empirical study on quality uncertainty of products and social commerce

Lee

2011

Proceedings of the 13th International Conference on Electronic Commerce

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With the advance of Social Network Service (SNS) like Facebook, Social Commerce (SC) such as Groupon now prospers, which provides daily deals at a highly discounted price by gathering buying power of consumers through SNS. From the perspective of quality-uncertainty, it is unusual to sell experience and credence goods/services on the internet as Groupon does. In traditional Ecommerce (EC) purchasing decisions rely on information provided after the actual use of products by other consumers, while in Groupon it heavily depends on opinion even before purchasing. For example, traditional sites use a third-party recommendation including feedback mechanism, while Groupon encourages consumers to post and share their preference on goods/services over SNS. Given this difference, focusing on the effect of SNS, we collect and analyze changes of sales for deals Groupon provided, using an econometric model that reflects our understanding of consumer behavior in the presence of different degrees of quality-uncertainty. The information from SNS is captured by using a function called -Facebook Like‖ that is a recommendation system in which suggestions are brought by one's friends, and it is a module that can be installed in any website. In this study, we demonstrate that the information from SNS positively affects sales for deals, which implies that SNS provides recommendation and encourages consumers to purchase by reducing encountered uncertainty. In addition, we also find that the effect of SNS is enlarged as the extent of the qualityuncertainty increases. This result means that under the presence of high degree of uncertainty, the information from SNS gives consumers a stronger belief in quality than information from a third-party. Besides, as many other studies proved, we also confirm that the internet turns experience goods into search goods by substituting in-store visits with virtual encounters.

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Section: Meta-linguisticmentioning

confidence: 99%

“…Aggarwal and Vaidyanathan, 2003;Adomavicius et al, 2005;Koch and Mo¨slein, 2005). Aggarwal and Vaidyanathan (2003) found that for experiential products, collaborative filtering agents are more apt in providing personalized choice alternatives than rules-based filtering. In contrast to rule-based filtering agents, which base their alternative recommendations on consumer-stated preferences for product attributes, collaborative filtering agents recommend alternatives on the basis of what other buyers with similar tastes and preferences chose, which is in line with Cooper-Martin's (1992) and Murray's (1991) argument of subjective features playing a larger importance in experiential product information than objective product features.…”

Section: Meta-linguisticmentioning

confidence: 99%

“…Thus, the functionalistic view overlooks the phenomenological aspects of information such as social and emotional features and sense-making. Such aspects of information have shown to be important to consumers when purchasing especially experiential products (Murray, Cooper-Martin, 1992;Aggarwal and Vaidyanathan, 2003). This is because ''information of an interpretive, subjective, and affective nature may address key customer needs more directly'' (Murray, 1991, p. 13).…”

Section: Introductionmentioning

confidence: 99%

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