How Do Recommender Systems Lead to Consumer Purchases? A Causal Mediation Analysis of a Field Experiment

2022 | Information Systems Research | Citations: 7

Authors: Li, Xitong; Grahl, Jörn; Hinz, Oliver

Abstract: How do recommender systems induce consumers to buy? Extant research neglects to ... Expand

Abstract: How do recommender systems induce consumers to buy? Extant research neglects to examine the causal paths through which the use of recommender systems leads to consumer purchases. In this study, we conduct a randomized controlled field experiment on the website of an online book retailer and explore the causal paths by employing the recently developed causal mediation approach. Not surprisingly, the results show that the presence of personalized recommendations increases consumers’ propensity to buy by 12.4% and basket value by 1.7%. More importantly, we find that these positive economic effects are largely mediated through affecting the consumers’ consideration sets. Specifically, the presence of personalized recommendations increases both the size of consumers’ consideration sets (breadth) and how intensively they are involved with each alternative in consideration (depth). It is the two changes that go on to increase consumers’ propensity to buy and basket value. Furthermore, we find that the proportion of the total effects mediated through the breadth of consideration set is much larger and more significant than that mediated through the depth. Collapse

Topics: recommender system electronic commerce collaborative filtering logistics management marketing management

Methods: field experiment experiment mediation analysis computational algorithm laboratory experiment

Algorithmic Assortative Matching on a Digital Social Medium

2022 | Information Systems Research | Citations: 0

Authors: López Vargas, Kristian; Runge, Julian; Zhang, Ruizhi

Abstract: Humans are increasingly interacting in and operating their daily lives through s ... Expand

Abstract: Humans are increasingly interacting in and operating their daily lives through structured digital and virtual environments, mainly through apps that provide media for sharing photos, messaging, gaming, collaborating, or video watching. Most of these digital environments are offered under “freemium” pricing to facilitate adoption and network effects. In these settings, users’ early social interaction and experience often have a substantial impact on their longer term behavior. On this background, we study the impact of an algorithmic system that matches new users to existing communities in an assortative manner. We devise a machine learning–based matching system that identifies users with high expected value and provides them the option to join highly active, in terms of engagement and expenditure, teams. We deploy this mechanism experimentally in a digital social game and find that it significantly increases user engagement, spending, and socialization. This finding holds for more active communities and overall. Teams matched with low-activity new users are negatively impacted, leading to an overall more segregated social environment. We argue that social experience and social behavior in groups are likely mechanisms that drive the impact of the matching system. History: This paper has been accepted for the Information Systems Research Special Section on Market Design and Analytics. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1135. Collapse

Topics: mobile application manufacturing information system social media price management productivity

Methods: experiment pilot experiment field experiment regression analysis method mediation analysis

Designing Promotional Incentives to Embrace Social Sharing: Evidence from Field and Online Experiments

2021 | Management Information Systems Quarterly | Citations: 5

Authors: Sun, Tianshu; Viswanathan, Siva; Huang, Ni; Zheleva, Elena

Abstract: Despite the increasing connectivity between consumers and the large volume of s ... Expand

Abstract: Despite the increasing connectivity between consumers and the large volume of social shares supported by digital technologies, there is an absence of research systematically investigating how firms can design promotional incentives that jointly consider their consumers as both purchasers and sharers. In this study, we examine whether and how firms can leverage consumers' social connections and engage consumers to share promotional incentives. In collaboration with a leading online deal platform, we report a large-scale randomized field experiment to test the effectiveness of different incentive designs (varying in the shareability and scarcity of promotion codes) in driving social sharing senders' purchases and successful referrals. We find that the different incentive designs have distinct impacts on the purchase and referral outcomes. Specifically, providing senders with one non-shareable promo code significantly increases their own purchase likelihood, compared to the other experimental groups. In contrast, senders who receive one shareable promo code are less likely to purchase themselves yet are more likely to make successful referrals. Surprisingly, the incentive design with two promo codes containing one non-shareable code and one shareable code increases neither the senders' purchases nor their successful referrals. Managerially, we estimate that although the one nonshareable promo code group derives the highest net revenue for the experimental period, the one shareable promo code group derives the highest customer lifetime value for the firm from the new customers acquired through the successful referrals. We further conducted two online experiments on Amazon Mechanical Turk that replicate the field experiment's findings and explore the underlying mechanisms of the observed relationships. We find that exclusivity perception and social motives triggered by the incentive designs with one promo code mediate their effects on senders' self-purchases and successful referrals, respectively, and explain the ineffectiveness of two promo codes. Our study contributes to the bodies of literature on IT-enabled social sharing and social promotions, providing implications for firms on how to design promotional incentives that accommodate the dual role of consumers as purchasers and sharers. Collapse

Topics: privacy electronic mail digital platform information exchange usage intention

Methods: experiment field experiment experimental group mediation analysis randomized field experiment

Theories: lemon market theory

Blurred Lines: How the Collectivism Norm Operates Through Perceived Group Diversity to Boost or Harm Group Performance in Himalayan Mountain Climbing

2019 | Organization Science | Citations: 0

Authors: Chatman, Jennifer A.; Greer, Lindred L.; Sherman, Eliot; Doerr, Bernadette

Abstract: We develop a theory explaining how collectivism causes people to “blur” demograp ... Expand

Abstract: We develop a theory explaining how collectivism causes people to “blur” demographic differences, that is, to see less diversity than actually exists in a group, and reconciling contradictions in how collectivistic norms influence group performance. We draw on the perceived diversity literature, hypothesizing that collectivistic norms cause group members to blur demographic differences, resulting in perceptions that group members are more similar than they actually are. Whether this benefits or harms group performance depends on the group’s objective diversity and the relevance of the perceived diversity attribute for accomplishing the task. For conjunctive tasks, the group’s performance is determined by its weakest member, demanding high levels of cohesion. Our theory suggests that collectivism benefits group conjunctive performance when objective national diversity is high by blurring divisive relational differences but has no effect in groups with low objective national diversity. In contrast, for disjunctive tasks, the group’s performance is determined by its best member. We predict that collectivism harms group disjunctive performance when objective expertness diversity is high by blurring differences in task-relevant expertness but has no effect in low objective expertness diversity groups. We find support for our theory in two studies, an archival study of 5,214 Himalayan climbing expeditions and a laboratory experiment assessing 366 groups. Our results show that collectivism has benefits and detriments for diverse groups and that these contradictory effects can be understood by identifying how the collectivistic blurring of perceived group diversity helps or hurts groups based on the type of tasks on which they are working. Collapse

Topics: team productivity task productivity database system laptop computer organizational culture

Methods: experiment archival research survey theory development robustness check

Theories: social identity theory

Designing Promotion Incentive to Embrace Social Sharing: Evidence from Field and Lab Experiments

2019 | International Conference on Information Systems | Citations: 0

Authors: Sun, Tianshu; Viswanathan, Siva; Huang, Nina; Zheleva, Elena

Abstract: This study examines whether and how firms can design novel incentives to engage ... Expand

Abstract: This study examines whether and how firms can design novel incentives to engage customers in this social sharing era. In collaboration with a leading online deal platform, we conduct a largescale randomized field experiment and two lab experiments to test the effectiveness of different incentive designs (varied by shareability and scarcity of promotion codes) in driving social sharing senders’ purchase and referrals. We find that providing senders with one non-shareable promo code significantly increases their purchase likelihood but does not influence their referrals. In contrast, the senders who receive one shareable code are less likely to purchase themselves yet are more likely to make successful referrals. Meanwhile, the incentive design with two codes that has one non-shareable code and one shareable code increases neither the senders’ purchase nor their successful referrals. We further conduct two lab experiments on Amazon Mechanical Turk to explore the underlying mechanisms of the observed relationships. Collapse

Topics: electronic mail internet technology social influence website IS problem

Methods: field experiment experiment experimental group laboratory experiment mediation analysis

“Run Forrest Run!”: Measuring the Impact of App-Enabled Performance and Social Feedback on Running Performance

2018 | International Conference on Information Systems | Citations: 0

Authors: Babar, Yash; Chan, Jason; Choi, Ben

Abstract: Exercise tracking apps are a novel, scalable, and affordable tool for delivering ... Expand

Abstract: Exercise tracking apps are a novel, scalable, and affordable tool for delivering personalized behavioral interventions. While thousands of fitness tracking solutions emerge in the market, there is a lack of systematic research that quantify their effectiveness on exercise outcomes, making it hard for for practitioners and users to know the true value of these apps. Drawing on the literature on motivation literature, this paper elucidates the effects of app-enabled motivation on running performance. Specifically, this study examines the two most common forms of feedback available to users of exercise tracking apps, namely performance feedback and social feedback. We conducted a 18-month long randomized field experiment, with 1,241 military servicemen, to assess the causal effect of these feedback types on actual exercise outcomes. Results from the experiment provided evidence that these two app features improve the running times of the servicemen. We further discuss the temporality and hetoerogeneity of these effects. Collapse

Topics: mobile application frequency of use information system use social presence mobile system

Methods: experiment experimental group survey field experiment mediation analysis

Engaging Consumers with Advergames: An Experimental Evaluation of Interactivity, Fit and Expectancy

2014 | Journal of the Association for Information Systems | Citations: 0

Authors: Khim-Yong Goh; Wenjie Ping, Jerry

Abstract: Advergames are increasingly popular for online advertising campaigns. However, f ... Expand

Abstract: Advergames are increasingly popular for online advertising campaigns. However, few IS studies have investigated the effectiveness of this unique advertising strategy. This study sheds light on the effectiveness of advergames by studying three design factors of advergame: interactivity, fit, and expectancy. We use multiple dependent variables (e.g., attitude toward advergames, attitude toward brand, and purchase intention) to evaluate the effectiveness of advergames. Based on work from human-computer interaction research and the transportation theory, we propose two-way interaction effects of interactivity, fit, and expectancy on attitudes toward advergame, and also their main effects on attitude toward brand. A positive mediating relationship from attitude toward advergame to attitude toward brand, and to purchase intention is also hypothesized. We conducted a 2*2*2 factorial design experiment in an online 3D virtual world environment to test our hypotheses. The results show that, in the high fit condition, both high interactivity and low expectancy lead to a more favorable attitude toward advergames. However, in the low interactivity condition, low expectancy generates a more positive attitude toward advergames. Interactivity and attitude toward advergames have significant positive effects on attitude toward brand, which, in turn, positively impacts purchase intention. Collapse

Topics: advertising management usability marketing management online advertising human computer interaction

Methods: experiment survey partial least squares regression analysis of covariance descriptive statistic

Theories: job engagement theory theory of task technology fit

Nurturing employee market knowledge absorptive capacity through unified internal communication and integrated information technology

2013 | Information & Management | Citations: 0

Authors: Jiménez-Castillo, David; Sánchez-Pérez, Manuel

Abstract: Organizations that are actively engaged in the dissemination of market informati ... Expand

Abstract: Organizations that are actively engaged in the dissemination of market information frequently question whether this effort improves employee information processing. We examined how the adoption of two integrative dissemination mechanisms, unified internal communication and information technology integration, is critical to enhancing employee market knowledge absorptive capacity. Using data from 211 industrial firms, we found that the existence of a greater market knowledge base and explicit market knowledge within firms determines the use of these mechanisms, which in turn increases employee absorptive capacity. Indeed, the mechanisms serve as full mediators for this ability, thus accentuating their value for knowledge, information technology, and innovation management. Collapse

Topics: knowledge base knowledge management innovation management database system absorptive capacity

Methods: survey statistical hypothesis test SEM tool structural equation modeling confirmatory factor analysis

Theories: contingency theory

Taking "Fun and Games" Seriously: Proposing the Hedonic-Motivation System Adoption Model (HMSAM)

2013 | Journal of the Association for Information Systems | Citations: 0

Authors: Lowry, Paul Benjamin; Gaskin, James Eric; Twyman, Nathan W.; Hammer, Bryan; Roberts, Tom L.

Abstract: Hedonic-motivation systems (HMS)-systems used primarily to fulfill users' intrin ... Expand

Abstract: Hedonic-motivation systems (HMS)-systems used primarily to fulfill users' intrinsic motivations-are the elephant in the room for IS research. Growth in HMS sales has outperformed utilitarian-motivation systems (UMS) sales for more than a decade, generating billions in revenue annually; yet IS research focuses mostly on UMS. In this study, we explain the role of intrinsic motivations in systems use and propose the hedonic-motivation system adoption model (HMSAM) to improve the understanding of HMS adoption. Instead of a minor, general TAM extension, HMSAM is an HMS-specific system acceptance model based on an alternative theoretical perspective, which is in turn grounded in flow-based cognitive absorption (CA). The HMSAM extends van der Heijden's (2004) model of hedonic system adoption by including CA as a key mediator of perceived ease of use (PEOU) and of behavioral intentions to use (BIU) hedonic-motivation systems. Results from experiments involving 665 participants confirm that, in a hedonic context, CA is a more powerful and appropriate predictor of BIU than PEOU or joy, and that the effect of PEOU on BIU is fully mediated by CA sub-constructs. This study lays a foundation, provides guidance, and opens up avenues for future HMS, UMS, and mixed-motivation system research. Collapse

Topics: intrinsic motivation video game information system use usage intention technology adoption

Methods: experiment laboratory experiment structural equation modeling survey descriptive statistic

Theories: hedonic motivation system adoption model flow theory technology acceptance model

PROVIDER- VS. USER-GENERATED RECOMMENDATIONS ON E-COMMERCE WEBSITES – COMPARING COGNITIVE, AFFECTIVE AND RELATIONAL EFFECTS

2010 | International Conference on Information Systems | Citations: 0

Authors: Benlian, Alexander; Titah, Ryad; Hess, Thomas

Abstract: With the proliferation of recommendation functions (RF) on e-Commerce websites, ... Expand

Abstract: With the proliferation of recommendation functions (RF) on e-Commerce websites, there is growing confusion about how various RF types affect consumers’ beliefs and behavior. Despite the importance of understanding the differential effects of RF types, research focusing on the comparison between provider-generated recommendations (PGRs) and user-generated recommendations (UGRs) has received little attention. This paper reports on two empirical studies that examine the differential effects of PGRs and UGRs on cognitive, affective and relational aspects of consumer beliefs and show how these perceptions influence RF usage intentions. The findings from a field survey (N=366) and a laboratory experiment (N=161) indicate that UGRs (such as consumer reviews) have stronger impact on users’ trusting beliefs and perceived affective quality (i.e. on relational and affective perceptions respectively) than PGRs. Conversely, PGRs (such as collaborative filtering-based RFs) are superior to UGRs in affecting perceived usefulness (i.e. cognitive perceptions). Further, trusting beliefs and perceived affective quality were found to be stronger predictors of usage intentions than perceived usefulness in UGR rather than PGR contexts. By showing which RF types influence different consumer perceptions, the study provides practitioners with clear guidelines on how to design sales efficient e-Commerce websites while enhancing online-consumers’ overall shopping experience. Collapse

Topics: electronic commerce usage intention website internet technology web page

Methods: survey laboratory experiment pilot experiment Student's t-test conceptual modelling

Theories: technology acceptance model adaptation-level theory