Understanding the Determinants of Review Helpfulness in Online Review Sites: An Empirical Study

Online review websites play an important role in customer’s purchase decision-making process for the useful product knowledge contained in the customer-generated reviews. However, the increasing information volume also makes it difficult for customers to identify and consider those attributes relevant to their decision. Based on Information Processing Theory (IPT) and Multiple Pathway Anchoring and Adjustment Model (MPAAM), we proposed three characteristics of online reviews affecting review helpfulness (e.g., attractiveness, representational sufficiency and functional sufficiency) and examined the moderating influences of information volume on these relationships. A large-scale review dataset from Yelp.com are collected and text analysis technique are applied to validate our research model. Our work, which illustrates the disturbance effect of information volume, has implications for both online word-of-mouth and information processing research

Lost in Numbers? Anchoring Effects in Advertising Claims and Product Information

The file attached to this record is the author's final peer reviewed version.According to anchoring theory, if unsure, human beings are predisposed to treat the first information they see as a starting point when making a judgement. This, often sub-conscious process, means random information can influence decisions in ways consumers are often unaware of. This paper tests this principle in advertising contexts to understand how anchoring may affect the way consumers interpret numbers within marketing messages. The results support the semantic priming and semantic anchoring models, which predict that random numbers will bias estimates when the wording of the ‘anchor’ is similar to the object of the estimate. We present evidence that this is the case even when the information is not directly relevant to the task. Contrastingly, no evidence is found to support the ‘simple numeric priming’ view of anchoring, which predicts that entirely abstract information can bias estimates

Star-Crossed Consumers: The Effects Of Online Rating Scale Length On Product Evaluations

Consumers’ ratings of products are ubiquitous in the online marketplace (e.g., Amazon; Yelp). The rating scales provided by online businesses typically comprise a set of stars that appear in the form of linear scales. Consumers looking to purchase a certain product likely rely on product ratings based on these rating scales. Although past research confirms the intuitive expectation that a higher star rating for a product elicits more favorable responses from consumers, there is a paucity of research related to effects of the properties of the scales themselves on consumers’ psychology. The literature on cognitive processing of information suggests that varying properties of scales might affect people’s processing of them and in turn their perceptions. Both 5-point and 10-point star-based rating scales, i.e., scales with a total of 5 and 10 stars respectively, are common in the online marketplace. Using relevant theories from the cognitive processing literature, this dissertation investigates whether the number of scale points in a rating scale affects consumers’ perceptions of product quality and their purchase intention. The results of three studies show that when a specific rating (e.g., 80%) is presented on a 10-point star-based scale (i.e., 8 out of 10 stars), perceptions of product quality and consumers’ intention to purchase the product are higher compared to when the same rating is presented on a 5-point scale (i.e., 4 out of 5 stars). Implications and limitations of this research are discussed, and directions for further research are provided

Temporally Designing the Consumer Experience: Three Essays Examining the Influence of Time Architecture on Consumer Behavior

How can the temporal aspects of the consumer experience be strategically constructed and communicated to improve consumer behavior and decision-making? This dissertation advocates for the explicit and systematic integration of time as a determining factor in consumer experiences, presenting three essays investigating different dimensions of time architecture, the temporal design of a consumer experience: temporal sequencing of planning prompt nudges (Essay 1), temporal partitioning of initial charitable contributions (Essay 2), and temporal duration of contemporary online promotions (Essay 3). Essay 1 explores how the timing of planning nudge delivery impacts intervention effectiveness in tasks containing an optimal “early bird” deadline (i.e., after which benefits of task completion diminish). Results from three studies find that planning prompt nudge reminders delivered after the optimal deadline are significantly more effective than control reminders but offer little benefit when implemented before the optimal deadline. These findings call for 1) strategic temporal management of planning prompts and 2) increased research exploring the ideal timing of nudge delivery. Essay 2 investigates how temporal aspects of giving perpetuate donor support. Consistent with an anchoring account, results from five studies demonstrate that prior donors who initially give a recurring time-dispersed gift (e.g., monthly $10 gift for 12 months) subsequently donate less than those who initially give a one-time lump-sum gift of the equivalent total amount (e.g., single$120 gift). Several approaches for offsetting recurring donors’ later reduced giving are tested and implications for charities are discussed. Essay 3 questions the degree to which contemporary instantiations of online time scarcity promotions (e.g., one-hour flash sales with countdown timers) can be presumed to operate in ways theoretically and empirically consistent with foundational demonstrations of time scarcity marketing tactics, which largely predate modern online retailing and predominantly involve offline contexts (e.g., printed newspaper ad). Results from 26 new studies find that present-day online time scarcity promotions may not be as effective as generally assumed, consistent with the argument that these promotions represent a novel theoretical and empirical phenomenon. Together, these essays demonstrate that the temporal design of a consumer experience can promote or undermine traditionally accepted marketing practices, thereby warranting systematic investigation and proactive management

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

Innovation attributes and managers' decisions about the adoption of innovations in organizations: A meta-analytical review

The adop­tion of in­no­va­tions has emerged as a dom­i­nant re­search topic in the man­age­ment of in­no­va­tion in or­ga­ni­za­tions, al­though in­ves­ti­ga­tions of­ten yield mixed re­sults. To help man­agers and re­searchers im­prove their ef­fec­tive­ness, the au­thors em­ployed a meta-analy­sis in­te­grated with struc­tural equa­tion mod­el­ing to an­a­lyze the as­so­ci­a­tions be­tween the at­trib­utes of in­no­va­tions, man­agers' be­hav­ioral pref­er­ences, and or­ga­ni­za­tions' in­no­va­tion adop­tion de­ci­sions in a me­di­ated-mod­er­ated frame­work. Our find­ings of­fer ev­i­dence that at­trib­utes of in­no­va­tions in­flu­ence man­agers' be­hav­ioral pref­er­ences and, con­se­quently, adop­tion de­ci­sions in or­ga­ni­za­tions. We also ob­serve the sig­nif­i­cance of the con­text in which the adop­tion de­ci­sion oc­curs as well as the re­search set­tings em­ployed by schol­ars. Fi­nally, we dis­cuss the the­o­ret­i­cal con­tri­bu­tion and prac­ti­cal im­pli­ca­tions of our meta-an­a­lyt­i­cal re­sults

Factors and Business Impacts in Human-Computer Negotiations

Negotiation commonly takes place where there are competing interests. Negotiations require a substantial amount of cognitive effort and time commitment. Artificial Intelligence (AI) has recently been experiencing a dramatic rise. AI and computer agents may significantly affect how negotiations are conducted. Agents can exhibit human-like behavior and follow the preferences of the principals and predefined strategies, goals, and constraints. For example, some companies already used computer sales assistant to help customers and even negotiate the price and other features online. The purpose of this thesis is to contribute to the transformation of the negotiation process from human vs human to human vs computer, in the context of e-commerce. By investigating various factors that influence human-computer negotiations and the impact of these factors on negotiation outcomes, the current thesis can shed light on the cognitive process underneath human-computer negotiation in the context of online purchasing. The work of this thesis is organized into three major components. As its first component, this thesis conducted a thorough search of state-of-the-art literature on human-computer negotiation and proposed a framework for future studies. Based on prior research, a list of various kinds of computer agent attributes that may influence negotiation results and the relationships between these factors and negotiation outcomes were proposed. In addition to computer agents’ attributes, this essay included past literature that studied human participants’ individual differences and the influence of such differences. Based on the Technology Acceptance Model (TAM), this essay investigated the development of human-computer negotiation and human participants’ acceptance and perception of a computer agent. At the end of the first essay, an overall research framework is presented. Based on the framework of essay 1, an experiment was conducted in essay 2 to investigate how various agent strategies, tactics and configurations influence the outcomes of negotiations. Specifically, essay 2 investigated the effects of negotiation tactics (concession pattern/curve), synchronous vs. asynchronous modes, and solution-search mechanisms (search between multiple issues or dive into one issue at a time) on the subjective and objective outcomes of human-computer negotiations. A 3×2×2 experiment was conducted where the subjects could negotiate the purchase of a mobile plan with computer agents acting as sellers. In this experiment, three time-based negotiation concession patterns and two solution-search mechanisms were employed in synchronous vs. asynchronous mode. On the other hand, the negotiation results were evaluated from multiple levels. Specifically, not only the overall result at group level but also the result at individual level were included in this research. On the individual level, in addition to objective measurements, subjective measures of negotiation results, such as usefulness and intention to use, were also adopted. A model was generated and tested based on TAM and a so-called TIMES framework (Task, Individuals, Mechanism, Environment, and System). Essay 3 investigates a construct named “implicit power” and the influence of implicit power in the context of online purchasing where humans negotiate with computer agents. Implicit power refers to perceived power gained indirectly through hints in the exchange of offers. In most of the prior research, when researchers talked about power, they meant the kind of power that can be gained directly through communication during negotiation. But there is another kind of power that is implicitly perceived by the other party through ways other than communication and influences negotiations as well. After introducing implicit power, a model was built to test the influence of implicit power of both negotiation parties: humans and computers. Specifically, a 2×4×3 experiment was conducted. Several aspects of implicit power were studied, including anchoring, agent avatar image power, and the power of human subjects’ personality. In the experiment, the subjects negotiated the purchase of a laptop with computer agents acting as sellers. Two anchoring conditions and four different avatar images were used to test the influence of computer agents’ implicit power. As the source of human’s intrinsic power, the participant’s personality (Social Value Orientation) was also tested in three different types: prosocial, individualistic, and competitive. This research proposed the concept of implicit power and studied the influence of several kinds of implicit power. The model built in this research shows a good ability to explain the variance in the dependent variable (R-square: 0.44)

When Cognitive Bias Masquerades as Intervention Efficacy: Drinking Norms as Anchors and Norm Interventions as Anchoring Effects

Problematic drinking is a serious public health concern on college campuses in the United States. College students most frequently report drinking for social reasons, and perceptions of peers\u27 drinking, or perceived drinking norms, are among the most consistent, robust predictors of college student drinking. Therefore, norm-based interventions have risen to prominence in the attempt to reduce the harm caused by college student alcohol use. However, the efficacy of these interventions may be obscured by cognitive bias. Specifically, providing information regarding the drinking norm may anchor individuals\u27 estimates of their own behavior. Using samples of college student drinkers, two studies were conducted to examine whether normative feedback serves as an anchor and biases one\u27s report of their behavior (norms as anchor hypothesis). In addition, the boundary conditions of this effect were examined. Specifically, it was examined whether the anchoring effect is attenuated or eliminated when participants are forewarned about the anchoring effect or when controlling for social desirability bias. Contrary to hypotheses, a robust anchoring effect was not found in Study 1 or Study 2. Given the lack of clarity provided by null results, these findings are interpreted cautiously. Methodological limitations are discussed in terms of how improvements can be made for future research and what the results signify for norm-based interventions

The Role of Heuristics in Information Security Decision Making

Inadvertent human errors (e.g., clicking on phishing emails or falling for a spoofed website) have been the primary cause of security breaches in recent years. To understand the root cause of these errors and examine practical solutions for users to overcome them, we applied the theory of bounded rationality and explored the role of heuristics (i.e., short mental processes) in security decision making. Interviews with 27 participants revealed that users rely on various heuristics to simplify their decision making in the information security context. Specifically, users rely on experts’ comments (i.e., expertise heuristic), information at hand, such as recent events (i.e., availability heuristic), and security-representative visual cues (i.e., representativeness heuristic). Findings also showed the use of other heuristics, including affect, brand, and anchoring, to a lesser degree. The results have practical and theoretical significance. In particular, they extend the literature by integrating bounded rationality concepts and elaborating “how” users simplify their security decision making by relying on cognitive heuristics

Risk versus reward: when will travelers go the distance?

Purpose – The purpose of this paper is to evaluate how consumers simultaneously process multiple cues for different dining occasions when making a restaurant decision. Design/methodology/approach – This paper investigates the influence of priming (review prototype), effort (distance) and involvement (occasion) on restaurant evaluations, willingness to drive and willingness to pay for a restaurant meal. A 2 (prototype: negative, positive)   2 (distance: close, far)   2 (occasion: casual, special) between-subjects factorial design was used. Findings – The paper finds that each variable influences a different outcome, whereby people rely on a review prototype for restaurant evaluation and choice, a distance cue for willingness to drive and a dining occasion for willingness to pay. Practical implications – This paper suggests that restaurant marketers can highlight exemplary service through online reviews, increase profitability by promoting special occasions and geographically expand their market by attracting people to drive for a special dinner. Originality/value – This paper evaluates the simultaneous interactive effects of multiple cues in service settings. It demonstrates that situational cues moderate the effect of primary cues in online reviews