Product Recommendation and Consumer Search

2023 | Journal of Management Information Systems | Citations: 0

Authors: Choudhary, Vidyanand; Zhang, Zhe

Abstract: We study an online environment where a firm provides strategic product recommend ... Expand

Abstract: We study an online environment where a firm provides strategic product recommendations to consumers. We develop an analytical framework to integrate recommendations into the consumer search process. The firm sells two imperfectly substitutable products with different profit margins and makes a personalized product recommendation to each consumer based on its uncertainty (lack of knowledge) of his preferences. We define recommendation bias as the firm's deliberate decision to recommend a product to a consumer that does not minimize expected misfit cost of the consumer. Consumers can accept the product recommendation, search for the nonrecommended product, or leave the website. We identify five consumer segments based on consumers' responses to the firm's recommendations. We show that the recommendation bias, profit, and consumer surplus depend on the interaction between the firm's uncertainty regarding consumer preferences and consumer search costs. A reduction in its uncertainty about consumers leads to a corresponding increase in the firm's profit but does not necessarily result in a reduction in consumer surplus. An increase in search costs can lead to nonmonotonic changes in the firm's recommendation strategy, causing an increase or decrease in recommendation bias when the firm's uncertainty about consumers is low. Furthermore, the firm's profit can behave non-monotonically with respect to search costs: the firm benefits from an increase in search costs when these costs are small and uncertainty about consumers is low, but it can be adversely affected when search costs are moderate. Interestingly, consumer surplus may increase when search costs increase. Collapse

Topics: consumer surplus IS economics website recommender system digital service

Methods: mathematical model

Theories: economic theory

Rejoinder to Comments on Recent Developments in PLS

2023 | Communications of the Association for Information Systems | Citations: 0

Authors: Evermann, Jöerg; Rönkkö, Mikko

Abstract: When we were first invited to write an essay on the use of PLS for CAIS, we wan ... Expand

Abstract: When we were first invited to write an essay on the use of PLS for CAIS, we wanted to focus on recent developments to help applied IS researchers, and the CAIS community of authors, reviewers, and editors make use of the latest research on and methodological advances in PLS. Recognizing that Information Systems is arguably the discipline in which the use of PLS as an alternative to CB-SEM originated and is most widely used, we realized that, pragmatically, our essay must focus on how to use PLS, not whether to use PLS.We received six interesting responses from researchers active in the PLS community. Their thoughts on our presentation of recent developments in PLS show very different perspectives with many points of difference amongst points of agreement in all the responses. In this rejoinder, we briefly respond to the received comments, clarify our position and ideas, and identify points of agreement (and disagreement). We emphasize that none of the responses give us cause to revise or eliminate our recommendations in recent developments.Overall, we believe this discussion on PLS to be valuable in advancing the use of PLS in Information Systems, which is, as we show in this rejoinder, an urgent issue. Collapse

Topics: spreadsheet marketing management Pandora website digital service

Methods: partial least squares regression structural equation modeling simulation consistent partial least squares path modeling PLS tool

Theories: unified theory of acceptance and use of technology

IMPACT OF EXPLAINABLE AI ON COGNITIVE LOAD: INSIGHTS FROM AN EMPIRICAL STUDY

2023 | European Conference On Information Systems | Citations: 0

Authors: Herm, Lukas-Valentin

Abstract: While the emerging research field of explainable artificial intelligence (XAI) ... Expand

Abstract: While the emerging research field of explainable artificial intelligence (XAI) claims to address the lack of explainability in high-performance machine learning models, in practice, XAI targets developers rather than actual end-users. Unsurprisingly, end-users are often unwilling to use XAI-based decision support systems. Similarly, there is limited interdisciplinary research on end-users' behavior during XAI explanations usage, rendering it unknown how explanations may impact cognitive load and further affect end-user performance. Therefore, we conducted an empirical study with 271 prospective physicians, measuring their cognitive load, task performance, and task time for distinct implementationindependent XAI explanation types using a COVID-19 use case. We found that these explanation types strongly influence end-users' cognitive load, task performance, and task time. Further, we contextualized a mental efficiency metric, ranking local XAI explanation types best, to provide recommendations for future applications and implications for sociotechnical XAI research. Collapse

Topics: explainable artificial intelligence task productivity artificial intelligence decision support system shapley additive explanation

Methods: descriptive statistic statistical hypothesis test literature study machine learning survey

Theories: theory of abduction

An Exploration of the Drivers of Non- Adoption Behavior: A Discriminant Analysis Approach

2020 | ACM SIGMIS Database | Citations: 0

Authors: Wolverton, Colleen Carraher; Cenfetelli, Ronald

Abstract: While there has been a substantial amount of attention within the information sy ... Expand

Abstract: While there has been a substantial amount of attention within the information systems research community towards understanding the phenomenon of adoption, much less is known about non-adoption. This study examines the factors surrounding the decision to not adopt a technology and whether certain factors exert differing effects on individuals in particular ways such that concurrent factors could be identified to develop a classification of the specific types of non-adoption behavior. Utilizing inhibitor theory and the symbolic adoption model as a foundational framework for the different types of non-adoption, we posit that different types of non-adoption exist which is demonstrated by determining the perceptions towards technology that coalesce around different types of non-adoption. We conducted a two-phase investigation into nonadoption with two goals in mind: 1) identify and explore specific factors of the IT that are associated with the rejection decision and are distinct from the adoption decision; and 2) determine the extent to which these factors (along with traditional enablers) differentiate between different types of non-adoption. The results from a discriminant function analysis (DFA) indicate the coalescence of specific perceptual variables according to the types of non-adoption behavior, specifically, the discriminatory power of differing perceptions of IT between trial rejecters, symbolic rejecters, trial accepters, symbolic adopters, and adopters. The implications for research and implications for practice are discussed. Collapse

Topics: innovation management information overload ease of use Twitter Apple iPhone

Methods: qualitative interview survey data transformation business process modeling linear discriminant analysis

Digitization of Music: Consumer Adoption Amidst Piracy, Unbundling, and Rebundling

2019 | Management Information Systems Quarterly | Citations: 5

Authors: Koh, Byungwan; Hann, Il-Horn; Raghunathan, Srinivasan

Abstract: Digital music formats and the Internet as a distribution mechanism have fundamen ... Expand

Abstract: Digital music formats and the Internet as a distribution mechanism have fundamentally disrupted the music industry by altering the way music is packaged, distributed, and consumed. This disruptive innovation has come in two stages. First, it enabled music to be purchased as an individual song (digital single) or as an album (digital album) or to be enjoyed without paying for it (unlicensed digital music). More recently, music has become available as a streaming service (streaming music). Prior to these innovations, music was primarily distributed as an album using a physical medium such as the CD. Building on multi-generation diffusion models, we identify and quantify different types of concurrent demand migration in the music industry such as generational substitution, unbundling, and piracy effects in the first stage and streaming effects in the subsequent stage. Measuring the relative contributions of factors that drive each of these different migration types, we find that the introduction of licensed digital downloads (digital single and digital album) has weakened the piracy effect. Since the introduction of licensed digital downloads, the piracy effect on the demand for CDs has decreased about 15 percent every year. At the same time, unbundling, rather than piracy, has become the dominant factor in the decline of industry revenue. More recently, streaming music services such as Pandora have moved demand from digital albums to streaming music. However, demand has not yet migrated from digital singles to streaming music. The introduction of streaming music has further weakened the piracy effect by about 7 percent every year. Collapse

Topics: digital service music streaming service internet technology innovation management computer crime

Methods: robustness check hazard function accelerated failure time model simulation descriptive statistic

Rejoinder to “Reconsidering Counting Articles in Ranked Venues (CARV) as the Appropriate Evaluation Criteria for the Advancement of Democratic Discourse in the IS Field”

2019 | Communications of the Association for Information Systems | Citations: 0

Authors: Loebbecke, Claudia; Galliers, Robert D.; Rosenkranz, Christoph

Abstract: In their article, Cuellar, Truex, and Takeda (2019) criticize the “process for e ... Expand

Abstract: In their article, Cuellar, Truex, and Takeda (2019) criticize the “process for evaluating scholarly output, “counting articles in ranked venues’ (CARV)” (p. 188). In their view, CARV limits the open exchange of ideas and, thereby, democratic discourse, which leads to unwanted performative effects and, ultimately, inhibits the growth of the information systems (IS) field. They propose the scholarly capital model (SCM) as a preferable mechanism that evaluators should employ to assess scholarly capital instead of scholarly output. In this rejoinder, we argue that CARV does not claim to measure output quality; it neither limits quality in the IS field nor the IS field’s growth, and mingling the effects of CARV with debates on quality or growth could be misleading. Replacing CARV would not change the game, only its rules. We posit that we all entered academia voluntarily knowing its rules and argue that colleagues facing P&T committees should recognize and focus on the specific (CARV-based or not) criteria of their institutions’ committees. While we expect that a new method will replace CARV in the not so distant future, we are convinced that, until then, a CARV-based environment offers ample opportunity to advance quality and growth of the IS field. Collapse

Topics: decision making big data Pandora digital service

Methods: computational algorithm social network analysis

Theories: theory of communicative action

An Exploration of the Drivers of Non-Adoption Behavior: A Discriminant Analysis Approach

2019 | ACM SIGMIS Database | Citations: 0

Authors: Wolverton, Colleen Carraher; Cenfetelli, Ronald

Abstract: While there has been a substantial amount of attention within the information sy ... Expand

Abstract: While there has been a substantial amount of attention within the information systems research community towards understanding the phenomenon of adoption, much less is known about non-adoption. This study examines the factors surrounding the decision to not adopt a technology and whether certain factors exert differing effects on individuals in particular ways such that concurrent factors could be identified to develop a classification of the specific types of non-adoption behavior. Utilizing inhibitor theory and the symbolic adoption model as a foundational framework for the different types of non-adoption, we posit that different types of non-adoption exist which is demonstrated by determining the perceptions towards technology that coalesce around different types of non-adoption. We conducted a two-phase investigation into non-adoption with two goals in mind: 1) identify and explore specific factors of the IT that are associated with the rejection decision and are distinct from the adoption decision, and 2) determine the extent to which these factors (along with traditional enablers) differentiate between different types of non-adoption. The results from a discriminant function analysis (DFA) indicate the coalescence of specific perceptual variables according to the types of non-adoption behavior, specifically, the discriminatory power of differing perceptions of IT between trial rejecters, symbolic rejecters, trial accepters, symbolic adopters, and adopters. The implications for research and implications for practice are discussed. Collapse

Topics: innovation management information overload ease of use Apple iPhone Twitter

Methods: qualitative interview survey data transformation business process modeling discriminant analysis

On the Importance of Considering Country-specific Aspects on the Online- Market: An Example of Music Recommendation Considering Country- Specific Mainstream

2018 | HICSS | Citations: 0

Authors: Bauer, Christine; Schedl, Markus

Abstract: In the field of music recommender systems, country-specific aspects have receive ... Expand

Abstract: In the field of music recommender systems, country-specific aspects have received little attention, although it is known that music perception and preferences are shaped by culture; and culture varies across countries. Collapse

Topics: national culture recommender system collaborative filtering digital service Spotify

Methods: experiment singular value decomposition data transformation descriptive statistic computational algorithm

An algebra of temporal faults

2016 | Information Systems Frontiers | Citations: 1

Authors: Didier, André; Mota, Alexandre

Abstract: Faults modelling is essential to anticipate failures in critical systems. Tradit ... Expand

Abstract: Faults modelling is essential to anticipate failures in critical systems. Traditionally, Static Fault Trees are employed to this end, but Temporal and Dynamic Fault Trees are gaining evidence due to their enriched power to model and detect intricate propagation of faults that lead to a failure. In previous work, we showed a strategy based on the process algebra CSP and Simulink models to obtain fault traces that lead to a failure. Although that work used Static Fault Trees, it could be used with Temporal or Dynamic Fault Trees. In the present work we define an algebra of temporal faults (with a notion of fault propagation) and prove that it is indeed a Boolean algebra. This allows us to inherit Boolean algebra’s properties, laws and existing reduction techniques, which are very beneficial for faults modelling and analysis. We illustrate our work on a simple but real case study supplied by our industrial partner EMBRAER. Collapse

Topics: computer hardware digital service Pandora

Methods: case study simulation

Converting freemium customers from free to premium—the role of the perceived premium fit in the case of music as a service

2014 | Electronic Markets | Citations: 33

Authors: Wagner, Thomas M.; Benlian, Alexander; Hess, Thomas

Abstract: Freemium seems to be a promising solution for content providers to earn money no ... Expand

Abstract: Freemium seems to be a promising solution for content providers to earn money now that Web 2.0 users feel entitled to free services and content services like Spotify generally accept this concept. Providers using freemium offer their service in free basic and paid premium versions. To prompt users to pay, a free version has fewer functions. However, no studies have yet investigated whether limiting features is the best strategy for converting users into paying customers, and, if so, how many functional differences there should be between free and premium versions. Therefore, our study aims to measure whether a free service’s limitations impact the evaluation of free and premium versions. Drawing on the Dual Mediation Hypothesis and the Elaboration Likelihood Model, we examined 317 freemium users’ survey responses. Our results indicate that companies providing freemium services can increase the probability of user conversion by providing a strong functional fit between their free and premium services. Collapse

Topics: digital service missing data price management internet technology streaming service

Methods: survey partial least squares regression survey design design science PLS tool

Theories: elaboration likelihood model