Incorporating Social Presence in the Design of the Anthropomorphic Interface of Recommendation Agents: Insights from an fMRI Study

Recommendation agents (RAs) are regularly used in online environments to give consumers advice on products. Since social components of human-like RAs (humanoid avatars) are important components in their adoption and use, this study focuses on how the design of the anthropomorphic interface of RAs in terms of social demographics, namely ethnicity and gender, can enhance the RA’s social presence to facilitate their adoption. Since social presence has been shown in the literature to predict the adoption and use of RAs, we examine whether match or mismatch in terms of the anthropomorphic RA’s ethnicity and gender can enhance the user’s social interaction with an RA. To overcome concerns of social desirability bias and political correctness when users assess the social presence of RAs that vary in their ethnicity and gender, we conducted a functional Magnetic Resonance Imaging (fMRI) study to complement a traditional behavioral experiment. Our goal was to explain prior behavioral findings that showed that ethnicity (as opposed to gender) match is associated with higher social presence, particularly among women. Specifically, brain activity was captured in an fMRI scanner while users who varied on their ethnicity and gender to either match or mismatch the ethnicity and gender of four RAs evaluated each of the RAs on their social presence. Besides contributing to the neuroscience literature by identifying the brain activations that relate to social presence, the fMRI results shed light on the nature of social presence and explain earlier behavioral findings by showing gender differences in the neural correlates of social presence in terms of ethnicity and gender match and mismatch. Implications on designing anthropomorphic interfaces to embody social demographics to enhance social presence are discussed

Understanding and Mitigating Product Uncertainty in Online Auction Marketplaces

The Internet interface poses a difficulty for buyers in evaluating products online, particularly physical experience and durable goods, such as used cars. This increases buyers' product uncertainty, defined as the buyer's perceived estimate of the variance in product quality based on subjective probabilities about the product's characteristics and whether the product will perform as expected. However, the literature has largely ignored product uncertainty and mostly focused on mitigating buyer's seller uncertainty. To address this void, this study aims to conceptualize the construct of product uncertainty and propose its antecedents and consequences in online auction marketplaces. First, drawing upon the theory of markets with asymmetric information, we propose product uncertainty to be distinct from, yet affected by, seller uncertainty. Second, based on auction pricing theory, we propose that product uncertainty and seller uncertainty negatively affect two key success outcomes of online marketplaces: price premium and transaction activity. Third, following information signaling theory, we propose a set of product information signals to mitigate product uncertainty: (1) online product descriptions (textual, visual, multimedia); (2) third-party product certifications (inspection, history report, warranty); (3) auction posted prices (reserve, starting, buy-it-now); and (4) intrinsic product characteristics (book value and usage). Finally, we propose that the effect of online product descriptions and intrinsic product characteristics on product uncertainty is moderated by seller uncertainty. The proposed model is supported by a unique dataset comprised of a combination of primary (survey) data drawn from 331 buyers who bid upon a used car on eBay Motors, matched with secondary transaction data from the corresponding online auctions. The results distinguish between product and seller uncertainty, show the stronger role of product uncertainty on price premiums and transaction activity compared to seller uncertainty, empirically identify the most influential product information signals, and support the mediating role of product uncertainty. This paper contributes to and has implications for better understanding the nature and role of product uncertainty, identifying mechanisms for mitigating product uncertainty, and demonstrating complementarities between product and seller information signals. The model's generalizability and implications are discussed

Business Ethics: The Promise of Neuroscience

Recent advances in cognitive neuroscience research portend well for furthering understanding of many of the fundamental questions in the field of business ethics, both normative and empirical. This article provides an overview of neuroscience methodology and brain structures, and explores the areas in which neuroscience research has contributed findings of value to business ethics, as well as suggesting areas for future research. Neuroscience research is especially capable of providing insight into individual reactions to ethical issues, while also raising challenging normative questions about the nature of moral responsibility, autonomy, intent, and free will. This article also provides a brief summary of the papers included in this special issue, attesting to the richness of scholarly inquiry linking neuroscience and business ethics. We conclude that neuroscience offers considerable promise to the field of business ethics, but we caution against overpromise

Neuromarketing and consumer neuroscience:contributions to neurology

Background: 'Neuromarketing' is a term that has often been used in the media in recent years. These public discussions have generally centered around potential ethical aspects and the public fear of negative consequences for society in general, and consumers in particular. However, positive contributions to the scientific discourse from developing a biological model that tries to explain context-situated human behavior such as consumption have often been neglected. We argue for a differentiated terminology, naming commercial applications of neuroscientific methods 'neuromarketing' and scientific ones 'consumer neuroscience'. While marketing scholars have eagerly integrated neuroscientific evidence into their theoretical framework, neurology has only recently started to draw its attention to the results of consumer neuroscience.Discussion: In this paper we address key research topics of consumer neuroscience that we think are of interest for neurologists; namely the reward system, trust and ethical issues. We argue that there are overlapping research topics in neurology and consumer neuroscience where both sides can profit from collaboration. Further, neurologists joining the public discussion of ethical issues surrounding neuromarketing and consumer neuroscience could contribute standards and experience gained in clinical research.Summary: We identify the following areas where consumer neuroscience could contribute to the field of neurology:. First, studies using game paradigms could help to gain further insights into the underlying pathophysiology of pathological gambling in Parkinson's disease, frontotemporal dementia, epilepsy, and Huntington's disease.Second, we identify compulsive buying as a common interest in neurology and consumer neuroscience. Paradigms commonly used in consumer neuroscience could be applied to patients suffering from Parkinson's disease and frontotemporal dementia to advance knowledge of this important behavioral symptom.Third, trust research in the medical context lacks empirical behavioral and neuroscientific evidence. Neurologists entering this field of research could profit from the extensive knowledge of the biological foundation of trust that scientists in economically-orientated neurosciences have gained.Fourth, neurologists could contribute significantly to the ethical debate about invasive methods in neuromarketing and consumer neuroscience. Further, neurologists should investigate biological and behavioral reactions of neurological patients to marketing and advertising measures, as they could show special consumer vulnerability and be subject to target marketing

Leveraging competence in the use of leveraging collaborative tools competence: facilitating an Open Architecture approach to acquiring integrated warfare systems

Acquisition research (Graduate School of Business & Public Policy)A fundamental problem in reaping the benefits of using an Open Architecture (OA) approach to developing integrated warfare systems (IWS) is the requirement for the multiple parties involved to collaborate. This was less of a problem when single vendors managed the entire acquisition life cycle. To take advantage of the potential of OA to use common off the shelf software modules, multiple vendors, greater access and involvement of the acquisition professional and future users of the IWS, collaborative information technology is a necessary ingredient. And, to make collaborative tools useful in the IWS acquisition life cycle, users must leverage their competence with the collaborative tools. To shed light on this requirement, this paper introduces the construct of 'Collaborative IT Tools Leveraging Competence' as the ability of various OA work groups involved in the IWS acquisition life cycle to effectively leverage collaborative IT tools to enhance their group performance. Collaborative IT Tools Leveraging Competence is conceptualized as a second-order construct formed by the group's effective use of the following six key IT functionalities: workspace sharing, conferencing, file sharing, scheduling, chat, and email. Collaborative IT Tools Leveraging Competence is hypothesized to facilitate group performance (process efficiency, project effectiveness, and situational awareness), particularly in intense work environments such as OA acquisition contexts. To enhance an OA work group's ability to effectively leverage collaborative IT tools, the study proposes a set of enabling factors: customization of the collaborative IT tools, group habits in using collaborative IT tools, the group's perceived usefulness and ease of use of collaborative IT tools, the group member's mutual trust, and the degree of environmental intensity. Data from 365 group managers support the proposed structural model with the antecedents and consequences of Collaborative IT Tools Leveraging Competence at different levels of environmental intensity. The paper discusses the study's contributions of better understanding the nature, antecedents, and consequences of Collaborative IT Tools Leveraging Competence on OA work group performance. Implications for the acquisition of IWS are discussed.Approved for public release; distribution is unlimited

On Product Uncertainty in Online Markets: Theory and Evidence

Online markets pose a difficulty for evaluating products, particularly experience goods, such as used cars, that cannot be easily described online. This exacerbates product uncertainty, the buyer’s difficulty in evaluating product characteristics, and predicting how a product will perform in the future. However, the IS literature has focused on seller uncertainty and ignored product uncertainty. To address this void, this study conceptualizes product uncertainty and examines its effects and antecedents in online markets for used cars (eBay Motors). Extending the information asymmetry literature from the seller to the product, we first theorize the nature and dimensions (description and performance) of product uncertainty. Second, we propose product uncertainty to be distinct from, yet shaped by, seller uncertainty. Third, we conjecture product uncertainty to negatively affect price premiums in online markets beyond seller uncertainty. Fourth, based on the information signaling literature, we describe how information signals (diagnostic product descriptions and third-party product assurances) reduce product uncertainty. The structural model is validated by a unique dataset comprised of secondary transaction data from used cars on eBay Motors matched with primary data from 331 buyers who bid on these used cars. The results distinguish between product and seller uncertainty, show that product uncertainty has a stronger effect on price premiums than seller uncertainty, and identify the most influential information signals that reduce product uncertainty. The study’s implications for the emerging role of product uncertainty in online markets are discussed

Context may be King, but generalizability is the Emperor!

The relative importance of context and generalizability (or particularism and universalism) has long been debated in scientific research. Recently, Davison and Martinsons raised valid concerns about the possibility of false universalism in IS research, discussed its negative consequences, and made a call for explicitly including particularism in research design and reporting. In this commentary, we generally agree with the notion that context should matter more in IS research; yet, the importance of generalizability in research should not be downplayed. Specifically, we posit that generalizability should be given higher position in the scientific process and be the ultimate goal for researchers. Still, researchers need to fully understand the research context, which, in combination and replication, can help to cautiously make generalizable knowledge claims. Therefore, we characterize the relationship between context and generalizability as that of a "King" (as an analogy of the local role of context) versus the "Emperor" (as an analogy of the global role of generalizability)