Information Delivery, User Decision Approach, and Choice Environment: Examining the Effectiveness of Non-Compensatory and Customization-based Online Decision Support.

Decision support research has largely focused on the mechanics of tool design, with less attention paid to the way the alternatives are presented to the user - that is, the format of the output, how the decision tool design can play a role in it, and the output content (characteristics). Furthermore, little research has examined specific decision contexts and user’s cognitive aspects pertinent to the choice task, and their role during an online purchase. This study addresses these issues by investigating the impact of output format and content of a non-compensatory (NC) tool and a customization-based tool on user’s decision quality in the context of a health insurance purchase. It also examines the moderating role of context (perceived risk) and user’s decision approach (price heuristics) – both salient in a health plan choice. Drawing from risk perception, decoy effect, price order effect, and options framing, this research carries out 2 studies: 2x3x2 full factorial between subjects experiments. Study 1 examines the effect of NC Descending (price High-Low) choice sets with asymmetrically dominated alternatives, while Study 2 examines NC Descending, NC Ascending, and customization-based tools. Both studies also investigate the roles of perceived risk (high vs low), and user’s decision approach (price heuristics-driven strong vs weak). Results of Study 1 demonstrate that output content characterized by price anchoring differentially affects user’s decision quality. These dynamics change for users under different levels of perceived risk and with disparate decision approaches. Study 2 indicate that by subjecting the user to reference dependence, usage of NC Descending tool can have a negative impact on decision quality (highest price paid), and usage of NC Ascending and Financial tool have a positive impact (lower price paid). Usage of a customization-based tool, as per the design delineated here, mitigates the negative impact of NC Descending, and further lowers, the influence of NC Ascending tools, by enforcing cost-utility analysis, adopting base-level reference point, and enabling more flexible item composition. The study contributes to: a) information systems, by uncovering detailed dynamics of the interactions between information delivery and the user; and b) boundaries of reference dependence, thus, loss aversion

Determinants of Individual Investor Behaviour: An Orthogonal Linear Transformation Approach

Expected utility theory views the individual investment decision as a tradeoff between immediate consumption and deferred consumption. But individuals do not always prefer according to the classical theory of economics. Recent studies on individual investor behavior have shown that they do not act in a rational manner, rather several factors influences their investment decisions in stock market. The present study considers this theory of irrationality of individual investors and investigates into their behaviour relating to investment decisions. We examine whether some psychological and contextual factors affect individual investor behaviour and if yes which factors influences most. Extrapolating from previous literature on economics, finance and psychology, we surveyed individual investors to find what and to what extent affects their investment behaviour. Our conceptual analysis, empirical findings and the perspective framework that we have developed in the present study, provide five major factors that can influence individual investor behaviour in Indian stock market. The findings can be useful in profiling individual investors and designing appropriate investment strategies according to their personal characteristics, thereby enabling them optimum return on their investments.Individual investor, Psychological biases, Investment behaviour, Indian stock market, Behavioural economics.

Empirical Findings On Persuasiveness Of Recommender Systems For Customer Decision Support In Electronic Commerce

More and more companies are making online presence by opening online stores and providing customers with company and products information but the overwhelming amount of information also creates information overload for the customers. Customers feel frustrated when given too many choices while companies face the problem of turning browsers into actual buyers. Online recommender systems have been adopted to facilitate customer product search and provide personalized recommendation in the market place. The study will compare the persuasiveness of different online recommender systems and the factors influencing customer preferences. Review of the literature does show that online recommender systems provide customers with more choices, less effort, and better accuracy. Recommender systems using different technologies have been compared for their accuracy and effectiveness. Studies have also compared online recommender systems with human recommendations 4 and recommendations from expert systems. The focus of the comparison in this study is on the recommender systems using different methods to solicit product preference and develop recommendation message. Different from the technology adoption and acceptance models, the persuasive theory used in the study is a new perspective to look at the end user issues in information systems. This study will also evaluate the impact of product complexity and product involvement on recommendation persuasiveness. The goal of the research is to explore whether there are differences in the persuasiveness of recommendation given by different recommender systems as well as the underlying reasons for the differences. Results of this research may help online store designers and ecommerce participants in selecting online recommender systems so as to improve their products target and advertisement efficiency and effectiveness

Interactive product catalogue with user preference tracking

In the context of m-commerce, small screen size poses serious difficulty for users to browse effectively through a product catalogue, given the limited number of products that may be presented on-screen. Despite the availability of search engines, filters and recommender systems to aid users, these techniques focus on a narrow segment of product offering. The users are thus denied the opportunity to do a more expansive exploration of the products available. This paper describes a novel approach to overcome the constraints of small screen size. Through integration of a product catalogue with a recommender system, an adaptive system has been created that guides users through the process of product browsing. An original technique has been developed to cluster similar positive examples together to identify areas of interest of a user. The performance of this technique has been evaluated and the results proved to be promising

Layered evaluation of interactive adaptive systems : framework and formative methods

Peer reviewedPostprin

The transition to IFRS: disclosures by Portuguese listed companies

In the context of the CESR and of the Portuguese market regulator recommendations regarding the disclosure of the impacts of the transition to IFRS, this paper analyses the content of those disclosures by Portuguese listed companies. We found a high degree of variability among the disclosure either regarding the qualitative (narrative explanations of transition) or quantitative (reconciliations) disclosures. The results show that the objective of comparability, relevance and understandability stated in CESR’s recommendation were not achieved. Regarding accounting changes, the analysis shows that the reported impacts by companies confirmed expectations based on prior de jure studies on major impacts of changing from Portuguese GAAP to IFRS; these major impacts regard the recognition of intangibles, the accounting treatment of goodwill and financial instruments. Finally, Gray’s (1980) “conservatism” index was computed using the reconciliated profits to IFRS reported by companies. This analysis shows that Portuguese standards are more conservative than IFRS. This study is relevant to several parties: to the market regulators and policy makers in predicting the level of compliance with IFRS and calling attention for the importance of enforcement mechanisms; to the preparers, auditors and users in identifying the most problematic areas of implementation of IFRS.International Accounting, Disclosure, IAS/IFRS, Portugal

The Use of Heuristics in Service Evaluations

Submitted to the School of Business and the Faculty of the Graduate School of the University of Kansas in partial fulfillment of the requirements for the degree of Doctor of Philosophy

Decreasing Shopping Duration by Altering Choice Environments? An Empirical Investigation of Individual and Hybrid Nudges in the Context of e-Grocery

Boosted by the Covid-19 pandemic, the utilization of online grocery shopping has gained an increasing relevance over recent years. Increasing customer value by reducing friction can be a key option for online grocers to maintain and increase growth, customer loyalty and satisfaction. Being easy and inexpensive to implement, digital nudges can offer distinct benefits for consumers and online grocers. In this context, we investigated the potentials of digital nudging, using anchoring, social norms and a hybrid nudging concept as rational choice triggers. Our results indicate that anchoring and hybrid nudges have a significant effect on purchase frequency, while none of the investigated concepts is capable of reducing the overall shopping duration. Interestingly, in combination with anchoring nudges, social norms do have a significantly influential effect, although individually proven to be ineffective in low involvement decision contexts such as buying groceries online