RECOMMENDATIONS IN AUGMENTED REALITY APPLICATIONS – THE EFFECT OF CUSTOMER REVIEWS AND SELLER RECOMMENDATIONS ON PURCHASE INTENTION AND PRODUCT SELECTION

Not only since the launch of Pokémon Go in July 2016, augmented reality (AR) has received a big boost in awareness and popularity. AR-based start-ups have entered the market, and established companies start to offer AR functionalities in their smartphone applications. A new distribution channel in form of augmented commerce has been emerging, although only little is known about optimized design of AR environments due to the limited number of user studies researching the effects of AR usage. This paper’s research objective is to tackle this gap by analysing AR technology in combination with online recommendations, a well-established, ubiquitous design element in today’s e-commerce. We conducted a controlled online experiment with 208 subjects to examine the effects of customer recommendations (CR) and increasingly emerging seller recommendations (SR) in AR applications. Our results demonstrate that CRs in AR applications positively influence the intention to purchase and the selection of products by decreasing a customer’s product fit uncertainty, whereas SRs displayed no significant influence. These insights are the first steps to further understand how AR and online recommendations can be used and have to be implemented to provide customers with novel and accepted sources of value

Social Cues as Digital Nudges in Information Systems Usage Contexts

Analysing human cognition and decision-making has become highly relevant in information systems (IS) research. Yet, although the notion of cognitive biases has been studied for more than 40 years in psychology and other related fields, IS researchers have only recently expressed explicit interest in this phenomenon. Even more nascent is the IS stream that emphasizes the usage and understanding of biases in the favor of humanistic outcomes (e.g., the well-being of individuals) beyond previous scientific endeavors to pursue instrumental goals (e.g., the profit of companies). This fact is reflected in the recent emergence and call for digital nudges - influences that rely on heuristics and biases to guide individuals to beneficial decisions through modest adjustments of the digital choice environments. To advance the emergent research in this field, this thesis targets one of the major bias categories: the social bias (i.e., systematic errors that result from an individual’s interpretation of social cues). Within four articles, the thesis addresses the role of social cues as digital nudges in various IS usage contexts. The first two articles investigate how directly-traceable social cues can overcome service adoption hurdles: Precisely, the first article investigates how employing a verbal (i.e., platform self-disclosure) and a nonverbal social cue (i.e., message interactivity) in a conversational agent (i.e., chatbot) influence users to voluntary self-disclose private information (i.e., e-mail addresses). Moreover, the results revealed that the analysed social cues do not have individual effects, but in fact boost each other through their interaction. The second article deals with the application of various directly-traceable social cues (e.g., pictures of human avatars) as well as the role of personalized recommendations in financial advisory services to improve investors’ financial well-being. The results demonstrate that not only directly-traceable social cues but also recommendations can increase a user’s perceived social presence during the interaction, which in turn influences potential investors to invest higher amounts. The third article continues with recommendations as social cues, yet analyses them from an indirectly-traceable perspective and is devoted to investigating whether the source of the recommendation (i.e., seller or other customers) influences the acceptance of the recommendation in augmented reality applications to help customers in finding the best product for their needs. The findings indicate that customer recommendations reduce a customer’s perceived fit uncertainty of a product, resulting in a higher intention to purchase of a product that previous customers recommended. However, customers refrain from adhering to an automatically-generated recommendation despite recent technological advances that may provide more personalized and thus more suitable recommendations than generic customer recommendations. The fourth and last article examines the impact of displaying sold-out products on campaign success in reward-based crowdfunding. The valuable information indicate how potential backers make use of displayed sold-out product as social cues to derive information for their decision-making from previous backing behavior. In addition, the findings also showed that sold-out products do not have an impact on their own, however, their effect is also influenced by other factors in the environment, namely discount amount and the number of backers (i.e., another social cue). Thus, the article provides learnings for project creators on the design of reward option menus. Overall, this thesis showcases the variety and importance of social cues in numerous applications and is, therefore, to be understood as a first approach to expanding the understudied research field. Furthermore, the results enrich previous research and elucidate various underlying explanatory mechanisms of how and why biased decision-making takes place and how these mechanisms may be used to nudge users in directions beneficial for them and for the employer of these nudges. The overarching contributions of this thesis for research consists of (1) investigating the existence and effects of various social cues on user decision-making, and (2) probing social cues in several IS usage contexts with their unique circumstances and influences, not only in a vacuum but also in conjunction with other interacting variables. Additionally, this thesis provides interesting and sometimes even counterintuitive recommendations as well as actionable and generalizable guidelines on social cues that practitioners can easily apply to various contexts

Accessible and Engaging Web Application for Increasing Customer Base and Purchasing Rate of Goods within the Retail Industry

People generally prefer to shop online as it is more convenient and time-saving. Therefore, it makes sense for any type of business owner to use the internet to sell their goods. In order to increase the overall customer base as well as increase the purchasing rate of an average customer, there are many elements that need to be factored into an online clothing store application that will help improve customer satisfaction and aid in making the online store application successful. However, the process can be improved much further by implementing more advanced features which are not so common in competitive applications such as smart recommendations and providing more ways to visualize the items such as Augmented Reality and 3D models to visualize how the clothes would look on someone. The goal of this research is to discover how to incorporate such technologies and build a clothing store application that will improve the rate of customer purchasing and increase the overall customer satisfaction. 

The Use of Augmented Reality in Retail: A Review of Literature

Novel digital technologies are affording ways to superimpose perceptual information (be it auditory, visual, haptic or olfactory) onto our reality, e.g. in retail environments. These technologies that aim to enhance reality are generally called Augmented Reality (AR) technologies. Today, the field of research focused on AR retail has evolved to mature enough state that an overview of the state-of-the-art, results and ways in which AR has been employed in research is needed. Therefore, in this study we conduct a systematic literature review of the academic corpus focused on AR retail. We report on how and where AR is employed in retail, what technological characteristics of AR are commonly analyzed as well as what potential psychological and behavioral outcomes AR is capable of evoking. Overall, AR is a technology with high potential for in-store and remote (online) shopping in terms of evoking both utilitarian and hedonic experiences

Using augmented reality for shopping : a framework for AR induced consumer behavior, literature review and future agenda

Purpose A current technological trend, which has gained even more traction recently due to the COVID-19 pandemic, is the use of augmented reality (AR) in shopping environments. AR is addressing contemporary challenges rooted in online shopping (e.g. in terms of experientiality and try-on) and is fundamentally reshaping consumers' experiences. The purpose of this study is to provide a synthesized and structured overview of the state-of-the-art research focused on AR shopping. Design/methodology/approach The authors conduct a systematic literature review of the empirical academic corpus focused on shopping via AR technology. Findings The review reveals the diverse psychological (cognitive, affective, and social) as well as behavioral outcomes related to the use of AR in the shopping context. The authors integrate the results into a framework for AR induced consumer behavior in shopping, thereby providing an important overview of the dynamics in AR-related shopping and the factors influencing the adoption of the technology by consumers. Specifically, the authors encountered that the technological abilities of AR (e.g. in terms of interactivity, vividness, informativeness, etc.) are a source for enhanced utilitarian and hedonic shopping experiences that can support intentions to purchase a product, reuse an AR app, or recommend it to others. Importantly, our review reveals the demand for several avenues for future research. Originality/value The authors provide an overview and synthesis of how and where AR is employed in shopping contexts, what theories and technological characteristics of AR are commonly analyzed, and what psychological and behavioral outcomes AR has been found to evoke. Based on our findings, the authors derive a framework that illustrates the dynamics in AR shopping and give an in-depth discourse on 13 future research agenda points related to thematic, theoretical, methodological, and technological matters.©2022 Emerald Publishing Limited. This manuscript version is made available under the Creative Commons Attribution–NonCommercial 4.0 International (CC BY–NC 4.0) license, https://creativecommons.org/licenses/by-nc/4.0/fi=vertaisarvioitu|en=peerReviewed

Developing B2B relationships by promoting customer intimacy in e-commerce

Developing lasting customer relationships is important for organizations in today’s competitive business environment. One strategy to accomplish this is customer intimacy, which refers to creating long and close customer relationships that benefit both parties. A prerequisite for customer intimacy is the acquisition of customer data and the understanding of customers' intentions, needs, and desires so that the company knows how to serve its customers best. At the same time, the e-commerce market is rapidly growing and is projected to grow even more in the next few years. The purpose of the research is to find out what constitutes customer intimacy in e-commerce and how it can be developed in order to improve B2B customer relationships. There is not much research on the subject yet, so this research seeks to provide new information on the field. The theoretical framework of the research includes definitions and different perspectives on how to develop customer intimacy, as well as presents e-commerce as a sales function. The approach for the research is qualitative, although quantitative methods are also used. The research is a multiple case study, and the empirical data consists of six e-commerce websites, one customer interview, and a survey. The research is conducted in two phases, the first one being analyzing what constitutes customer intimacy at the studied e-commerce sites and the second one includes the interview and survey, which provide insights into what e-commerce functionalities and features customers find important and why. Lastly, the findings are concluded and concrete suggestions for promoting customer intimacy in e-commerce are given. The research found ten main themes that affect building customer intimacy: communication, communality, product recommendations, customer experiences, product information, customer data collection, transparency, timeliness, customization, and concerns. The results show that customers value clear product technical requirement details and price and purchase information most. The results also highlight the importance of up-to-date and efficient data. This means for example detailed product descriptions with pictures, illustrations, and videos, product comparisons, downloadable documents, buying guides, and product updates. Communication is vital for customer intimacy, and quick responses to customer inquiries and clear contacting options are crucial. Customers are these days increasingly social and want to be included, thus reciprocal communication and the sense of communality promote customer intimacy. Communality features such as allowing customers to openly ask and answer questions, start conversations, comment, and socialize with other customers and the company representatives are especially effective for building customer intimacy. Transparency and openness in every action are important aspects since customers need to understand for example why certain information is collected from them and how it benefits them. They want to be active participants and have the possibility to configure products and personalize the website according to their needs.Kestävien asiakassuhteiden luominen on erityisen tärkeää nykyajan kilpailullisessa liiketoimintaympäristössä. Yksi strategia tämän tavoitteluun on asiakasläheisyys, jolla viitataan pitkäaikaisten ja läheisten, molempia osapuolia hyödyttävien asiakassuhteiden luomiseen. Asiakasläheisyyden edellytyksenä on asiakastietojen kerääminen ja asiakkaiden aikeiden, tarpeiden ja toiveiden ymmärtäminen, jotta yritys pystyy palvella heitä parhaalla mahdollisella tavalla. Samaan aikaan sähköinen kaupankäynti kasvaa nopeasti, ja sen ennustetaan kasvavan entisestään lähivuosina. Tämän tutkimuksen tavoitteena on selvittää, miten asiakasläheisyys muodostuu verkkokaupoissa ja miten sitä voidaan kehittää B2B-asiakassuhteiden edistämiseksi. Aihetta ei ole vielä juurikaan tutkittu, joten tämä tutkimus pyrkii tuomaan uutta tietoa alalle. Tutkimuksen teoreettisessa viitekehyksessä esitellään asiakasläheisyyden määritelmiä ja erilaisia näkökulmia sen kehittämiseen, sekä avataan tarkemmin verkkokauppojen roolia myyntitoimintona. Tutkimuksen lähestymistapa on laadullinen, vaikka myös määrällisiä menetelmiä käytetään. Tutkimus on monitapaustutkimus, ja sen empiirinen aineisto koostuu kuudesta verkkokauppasivustosta, yhdestä asiakashaastattelusta ja kyselystä. Tutkimus toteutetaan kahdessa vaiheessa, joista ensimmäisessä analysoidaan, miten asiakasläheisyys muodostuu valituissa verkkokaupoissa. Toinen vaihe koostuu haastattelusta ja kyselystä, jotka avaavat tarkemmin, mitä verkkokaupan toimintoja ja ominaisuuksia asiakkaat pitävät tärkeinä ja miksi. Lopuksi tulosten pohjalta tehdään johtopäätöksiä ja annetaan konkreettisia kehitysehdotuksia verkkokauppojen asiakasläheisyyden kehittämiseksi. Tutkimuksessa löydettiin 10 pääteemaa, jotka rakentavat asiakasläheisyyttä: viestintä, yhteisöllisyys, tuotesuositukset, asiakaskokemukset, tuotetiedot, asiakastietojen keräys, läpinäkyvyys, ajantasaisuus, kustomointi ja huolet. Tulokset osoittavat asiakkaiden pitävän tuotteiden selkeitä teknisiä tietoja sekä hinta- ja ostotietoja tärkeimpinä. Tietojen ajantasaisuus ja tehokkuus ovat myös olennaista. Tällä tarkoitetaan esimerkiksi yksityiskohtaisia tuote-esittelyjä kuvien, kuvituksien ja videoiden kera, tuotevertailuja, ladattavia dokumentteja, osto-oppaita ja tuotepäivityksiä. Viestinnällä on keskeinen rooli asiakasläheisyyden muodostumisessa, ja nopeat vastaukset asiakkaiden kysymyksiin ja selkeät yhteydenottotavat ovat tärkeitä. Asiakkaat ovat nykyään entistä sosiaalisempia ja osallistuvampia, joten asiakasläheisyyttä lisää vastavuoroinen viestintä ja yhteisöllisyys. Erityisen tehokkaita keinoja ovat esimerkiksi mahdollisuus kysyä avoimesti kysymyksiä ja vastata niihin, aloittaa keskusteluja, kommentoida ja seurustella muiden asiakkaiden ja yrityksen edustajien kanssa. Myös läpinäkyvyys ja avoimuus ovat tärkeitä tekijöitä, sillä asiakkaat haluavat ymmärtää, miksi heiltä esimerkiksi kerätään tiettyjä tietoja ja miten se hyödyttää heitä. Asiakkaat haluavat olla aktiivisia osallistujia, ja että heillä on mahdollisuus kustomoida tuotteita ja verkkokauppasivustoa tarpeidensa mukaisesti

Conceptualizing the Electronic Word-of-Mouth Process: What We Know and Need to Know About eWOM Creation, Exposure, and Evaluation

Electronic word of mouth (eWOM) is a prevalent consumer practice that has undeniable effects on the company bottom line, yet it remains an over-labeled and under-theorized concept. Thus, marketers could benefit from a practical, science-based roadmap to maximize its business value. Building on the consumer motivation–opportunity–ability framework, this study conceptualizes three distinct stages in the eWOM process: eWOM creation, eWOM exposure, and eWOM evaluation. For each stage, we adopt a dual lens—from the perspective of the consumer (who sends and receives eWOM) and that of the marketer (who amplifies and manages eWOM for business results)—to synthesize key research insights and propose a research agenda based on a multidisciplinary systematic review of 1050 academic publications on eWOM published between 1996 and 2019. We conclude with a discussion of the future of eWOM research and practice

Dynamic preference elicitation of customer behaviours in e-commerce from online reviews based on expectation confirmation theory

Preference change, also known as preference drift, is one of the factors that online retailers need to consider to accurately collect consumer preferences and make personalised recommendations. Online reviews have been widely used to analyse the preference drift of consumers. However, previous studies on online reviews ignored the psychological perceptions of consumers in terms of satisfaction. This paper aims to develop a method for dynamic preference elicitation from online reviews based on exploring the theory of consumer satisfaction formation. Based on the framework of expectation confirmation theory, we develop formulas for expressing the relations among expectation, perceived performance, confirmation, and satisfaction. We then use the proposed dynamic preference elicitation model to predict the change of consumer overall preference after each review and rank products for consumers’ next purchase. We test the proposed approach with a case study based on a data set from Amazon.com. It is founded that the satisfaction changes in each purchase, and this change will affect the prediction of the next product ranking. The case study is based on one product group, and further research is needed to see if the operation of the proposed method can be extended to other kinds of product