Online Shopping Recommendation Mechanism and Its in Uence On Consumer Decisions and Behaviors: A Causal Map Approach

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 8

Available online at www.sciencedirect.

com

Expert Systems
with Applications
Expert Systems with Applications 35 (2008) 1567–1574
www.elsevier.com/locate/eswa

Online shopping recommendation mechanism and its influence


on consumer decisions and behaviors: A causal map approach
Kun Chang Lee, Soonjae Kwon *

School of Business Administration, Sungkyunkwan University, Myung Ryun 3-53, Chong No-Ku, Seoul 110-745, Republic of Korea

Abstract

Purpose of this paper: Online product recommendation mechanism (agents) are becoming increasingly available on websites to assist
consumers with reducing information overload, provide advice in finding suitable products, and facilitate online consumer decision-
making. Central of these services is consumers’ satisfaction with recommendation results. Traditional recommendation mechanism
(TRM) is based content and/or collaborative filtering approach. However, the remaining problem concerning TRM is how to analyze
the causal relationships between quantitative and qualitative factors, and investigate their impact on the central routes and peripheral
routes through which both quantitative and qualitative factors can affect customer online shopping decisions. It is well known that qual-
itative factors are hard to codify yet they have a significant effect on a customer’s decision-making process in the form of causal rela-
tionships with quantitative factors. Thus, a new online recommendation mechanism is required that incorporates qualitative factors
systematically with quantitative factors to analyze their combined influence on customers’ purchasing decision-making process. So,
our study suggest that causal maps based recommendation mechanism (CMRM).
Design/methodology/approach: ELM was applied to build hypotheses concerning how consumers’ decision satisfaction and online
shopping behavior are affected by CMRM. Specifically, the performance of the proposed CMRM is analyzed empirically by garnering
the experiment data from 250 qualified respondents who were asked to refer to the proposed CMRM before making purchasing decisions
on mobile phones.
Findings: Statistical results proved that the proposed CMRM could enhance consumers’ decision satisfaction, attitude towards the
recommended products, as well as positive purchase intentions and actual purchase.
Practical implications: CMRM can be easily implemented on the web, allowing target consumers to experience a real recommenda-
tion process. And, a wide variety of qualitative factors that seem crucial to most consumers can be pre-defined through a survey, and
incorporated into causal maps. Thus, such causal maps will improve the personalization effect on the target consumer’s purchase
intentions.
 2007 Elsevier Ltd. All rights reserved.

Keywords: Causal map; Traditional recommendation mechanism (TRM); Elaboration likelihood model (ELM)

1. Introduction 1997). The buying patterns of individual customers and


groups can be identified via analyzing customer data
Recently, information technology has been utilized to (Maes, Guttman, & Moukas, 1999), but also allows a
help companies maintain competitive advantage (Nissen company to develop one-to-one marketing strategies that
& Sengupta, 2006). Data mining techniques with recom- provide individual marketing decisions for each customer
mendation systems are a widely used information technol- (Lampel & Mintzberg, 1996; Murthi & Sarkar, 2003).
ogy for extracting customer’s knowledge and further Recommendation systems are technologies that assist busi-
supporting marketing decisions (Balabanovic & Shoham, nesses to implement such strategies, and provide a type of
mass customization that is becoming increasingly popular
*
Corresponding author. Tel: +82 16 722 8757; fax: +82 2 760 0440. on the internet (Ansari, Essegaier, & Kohli, 2000; Lee &
E-mail address: kwonsoonjae@naver.com (S. Kwon). Lee, 2005). They have emerged in e-commerce applications

0957-4174/$ - see front matter  2007 Elsevier Ltd. All rights reserved.
doi:10.1016/j.eswa.2007.08.109
1568 K.C. Lee, S. Kwon / Expert Systems with Applications 35 (2008) 1567–1574

to support product recommendation. The recommendation structure of assertion of causal relationships among vari-
systems use customer purchase history to determine prefer- ables and not at how or why variables or their causal rela-
ences and identify products that a customer may wish tionships come to be part of the map (Ford & Hegarty,
to purchase. Schafer, Konstan, and Riedl (2001) pre- 1984). Causal maps have been shown to be relatively stable
sented a detailed taxonomy of recommendation systems and thus capable of providing the basis for prediction
in e-commerce, and determined how they can provide (Bonham & Shapiro, 1976). The first objective of this study
personalization to establish customer loyalty. Generally, then is to propose a causal map-driven online recommen-
recommendation systems increase the probability of cross- dation mechanism, named CMRM, to (1) analyze causal
selling; establish customer loyalty; and fulfill customer relationships among both quantitative factors as well as
needs by discovering products in which they may be qualitative factors, (2) help customers revise their prior
interested. online shopping behaviors based on quantitative factors
The traditional recommendation mechanism (TRM) is a alone, and (3) prove its validity statistically with respect
web-based system designed to help customers sort through to customer decisions satisfaction and behaviors (i.e., atti-
available products and/or services on the online shopping tude towards recommended products, purchase intention,
malls and advise customers about what products to buy, actual purchase) in comparison with TRM.
based on the needs expressed by the customers. Through
a variety of tasks such as defining needs, forming consider- 2. Theoretical backgrounds
ation sets, making recommendations, and negotiating pur-
chases (West et al., 1999), the TRM serves to potentially 2.1. Recommendation mechanisms and decision making
reduce the cost of thinking (Shugan, 1980), as well as the
uncertainty surrounding an online shopping purchasing On the Internet, recommendation mechanisms are
decision, and thus both reduce the difficulty of making a becoming more important in providing personalized sup-
choice while increasing the confidence associated with it. port to a customer’s decision-making process by reducing
Since the TRM is perceived by customers to be highly cred- the difficulty associated with choosing between alternatives
ible and to have particular expertise in the decision context, (Haubl & Trifts, 2000). And, recommendation mechanisms
its positive impact is expected to intensify. However, the have been found to help consumers efficiently filter avail-
remaining problem concerning TRM is how to analyze able alternatives, increase the quality of their considered
the causal relationships between quantitative and qualita- set and increase their product choice satisfaction (Haubl
tive factors, and investigate their impact on the central & Trifts, 2000; Urban et al., 1999). Knowledge of appropri-
routes and peripheral routes through which both quantita- ate recommendation mechanisms using customer’s infor-
tive and qualitative factors can affect customer online shop- mation can be used to improve decision quality toward
ping decisions. It is well known that qualitative factors are recommendation products (Ansari et al., 2000; Tam &
hard to codify yet they have a significant effect on a cus- Ho, 2005). Customers are typically good at selecting vari-
tomer’s decision-making process in the form of causal rela- ables that are relevant in the decision process, but weak
tionships with quantitative factors. Thus, a new online at integrating and retaining large amounts of information.
recommendation mechanism is required that incorporates Effective decision aids (i.e., recommendation systems)
qualitative factors systematically with quantitative factors should be designed to capitalize on the strengths and com-
to analyze their combined influence on customers’ purchas- pensate for the inherent weaknesses of their users (Hoch &
ing decision-making process. Schkade, 1996). So, customers need to examine and assim-
To accomplish this, the first objective of this study is to ilate relevant recommendation information in the decision-
propose an alternative online recommendation mechanism making process before choice products which match with
where causal relationships, possibly existing among quanti- their preference. If a product recommendation from an
tative and qualitative factors that seem relevant to custom- information source is available to customers, they can
ers’ online shopping decisions. For this purpose, causal either decide not to consult it, consult and follow it, or con-
mapping is introduced to analyze causal relationships sult and not follow it (Senecal, Kalczynski, & Nantel,
among quantitative factors and qualitative factors and help 2005). Senecal et al. (2005) investigate how different online
customers revise prior decisions that were based on quanti- decision-making processes used by consumers, influence
tative factors alone. Quantitative factors in the case of the complexity of their online shopping behavior. So, this
mobile phones include such terms as handset price, folder paper shows CMRM effect on consumers’ decision satisfac-
type, rate of communication charge, brand, etc. In con- tion and online shopping behavior, and increase actual
trast, qualitative factors indicate customers’ tacit prefer- purchase.
ences towards body color, design, usefulness, etc., all of
which reside mentally and have causal relationships with 2.2. Cognitive map
quantitative factors. Causal mapping is a widely accepted
methodology for analyzing causal relationships rigorously Due to incomplete and uncertain objective information,
(Eden, 1989; Nelson, Nadkarni, Narayanan, & Ghods, as well as lack of sufficient knowledge, experts may find it
2000). A causal map, therefore, looks at the pattern or difficult to describe their tacit knowledge precisely. Causal
K.C. Lee, S. Kwon / Expert Systems with Applications 35 (2008) 1567–1574 1569

maps (Eden, Jones, & Sims, 1979; Nelson et al., 2000), towards the recommended product candidates, customers’
which is widely used in describe expert knowledge of spe- purchase intentions and actual purchase. Based on these
cial domain, is used here as a tool for solving the problem assertions, we develop a research model as depicted in
of recommendation systems. Also, causal maps can illus- Fig. 1.
trate causal relationships among the factors describing a Before proceeding with the research model, we need to
given object and/or problem, and they can also describe set up a theory of how the online recommendation mecha-
experts’ tacit knowledge about a certain object (Eden, nism works to affect customer decisions and behaviors by
1989; Lee & Kwon, 2006; Montazemi & Conrath, 1986; stressing that the online recommendation mechanism
Nelson et al., 2000). Tacit knowledge is personal knowl- belongs to a stimuli-based decision-making environment.
edge embedded in individual experience and, is shared The stimuli take the form of text, images, audio, anima-
and exchanged through direct, face-to-face contact. Tacit tions, or video. With the stimuli, recommendations being
knowledge can be communicated in a direct and effective administered by the online recommendation mechanisms
way. The proposed causal map technique has been used constitute different persuasive efforts to influence customers
to evaluate the factors that affect a given class of decisions, (Tam & Ho, 2005). To enhance the recommendation effect,
and, most importantly, to enhance the overall understand- recent online recommendation mechanisms like collabora-
ing within the decision maker’s environment. For this rea- tive filtering, data mining, and click-stream analysis cus-
son, causal maps are used in our research to analyze and tomize their recommendations at the individual level
aide decision-making by investigating causal links among according to the stimuli (Ansari et al., 2000). To this end,
relevant domain concepts (Eden & Ackermann, 1989; ELM or the elaboration likelihood model (Petty & Caciop-
Klein & Cooper, 1982). The primary concern of causal po, 1981, 1986) is introduced. Strong persuasion occurs
maps is to analyze whether the state of one element is per- through the central route, while weak persuasion occurs
ceived to have an influence on the state of the other. In through the peripheral route (Petty & Cacioppo, 1986).
addition, several researchers proved that causal maps are Before being persuaded by the online recommendation
a technically and methodologically mature technique to mechanisms, customers gather information through two
solve a wide variety of unstructured decision problems. kinds of routes, such as the central and peripheral route.
(Eden et al., 1979; Kwahk & Kim, 1999; Lee & Kwon, In particular, information gathered by the central route is
2006; Nelson et al., 2000; Ramaprasad & Poon, 1985; War- known to persuade customers more effectively, according
ren, 1995; Zhang, Wang, & King, 1994; Zhang, Chen, & to ELM. In other words, customers tend to elaborate on
Bezdek, 1989). Therefore, causal maps can represent information gathered through the central route and allow
experts’ beliefs and cognition about ill-structured social it to influence their purchasing decisions and behaviors
relationships (Ford & Hegarty, 1984; Huff, 1990). In the more effectively. If the recommended products match with
case of online shopping, it is typical for customers to con- the customers’ preferences, which are determined compos-
sider quantitative and qualitative factors simultaneously. itely by quantitative factors as well as qualitative factors,
The problem here is how to configure causal relationships then the products are recognized through the customers’
among the factors. Since the causal relationships belong central route, leading to significant decision making (Tam
to tacit knowledge, and using causal maps is well known & Ho, 2005). In literature, it is well known that customers
as a highly promising technique for capturing tacit knowl- tend to give more emphasis to the qualitative factors than
edge (Lee & Kwon, 2006; Nelson et al., 2000), causal maps the quantitative factors (Haubl & Trifts, 2000; Lee &
can be used effectively in designing more advanced versions Benbasat, 2005). Therefore, the online recommendation
of online recommendation mechanism. mechanisms’ persuasion effects on customers’ purchasing
decisions and behaviors will be significantly improved as
3. Research model various forms of qualitative factors can be systematically
considered in the central route of the recommendation
The proposed CMRM is based on two kinds of fac- process.
tors—quantitative and qualitative. In this study, the quan-
titative factors indicate product functionality-related
factors, while qualitative factors denote customers’ subjec-
tive characteristics. First, recommendations supported by
the CMRM are organized on the basis of quantitative fac-
tors alone, and then customers are allowed to incorporate
their own qualitative factors into the decision process via
causal mapping, leading to revision of the prior beliefs
about the product candidates. The final product recom-
mendation is made as follows. The CMRM is compared
with TRM with respect to customer decisions as well as
customer behavior, where the customer decision satisfac-
tion, and customer behavior includes customers’ attitudes Fig. 1. Research model.
1570 K.C. Lee, S. Kwon / Expert Systems with Applications 35 (2008) 1567–1574

The CMRM’s central route is based on quantitative fac- Phase 1 Phase 2


tors as well as qualitative factors to create strong persua-
sion. In particular, causal map is used to deal with causal Express participants’
Display causal map
relationships among the two kinds of factors and help requirements for each variable

revise customers’ purchasing decisions and behaviors more


systematically. According to the information processing Participants input preference
Calculate the similarity
model (Bargh, 2002), customers’ information processing using the products’ values composed of
quantitative factors qualitative factors
stages include attention, elaboration, and behavior. If com-
plicated information like causal relationships among quan- Display three candidate
Calculate the satisfaction
value using participants’
titative factors and qualitative factors are processed more recommended products qualitative factors

effectively by the CMRM, then a customer’s first response


will be to pay attention to the results, and then elaborate Display revised satisfaction
value about each
on them, and finally try to integrate the full information Questionnaires of
dependent variable recommended products
of the results and revise prior purchasing decisions and
behaviors (Hoch & Schkade, 1996). Such information pro- Questionnaires of
dependent variable
cessing was empirically studied in the field of advertise-
ments (MacInnis & Jaworski, 1989).
Besides, customers want to reduce the amount of cogni- Fig. 2. Logical flow of CMRM.
tive efforts associated with decision making, (Payne, 1982;
Shugan, 1980) because they are often unable to evaluate
all available alternatives in great depth prior to making a phones, the product functionality includes manufacturer,
decision (Beach, 1993). Recently, Lee and Benbasat body type (folder vs sliding), price plan, body color, body
(2005) focused on customers’ negative emotions in the pro- size, LCD size, waiting time, and other functional proper-
cess of recommendation due to the conflicts among prod- ties like MP3 and digital camera, etc. Based on customers’
uct attributes forcing customers to trade off some preferences regarding product functionality, the CMRM
attributes to acquire others (Luce & Bettman, 2001). This computes similarity for the candidate products, recom-
phenomenon will occur especially when processing quanti- mending three candidate products.
tative factors and qualitative factors simultaneously. In phase 2, the CMRM incorporates qualitative factors
Therefore, the CMRM relies on causal maps to help cus- to help customers revise a priori judgments about the prod-
tomers compute the influence of the qualitative factors on ucts reviewed in phase 1. For this purpose, causal map is
their prior quantitative factors-based decisions and behav- organized to depict causal relationships among the quanti-
iors in a more systematic and effective way. In summary, tative and qualitative factors.
depending on the arguments so far, customers will improve
their decision satisfaction (H1) by using the CMRM, and 4.2. Building of causal map
such improved decisions will lead to an improvement in
customers’ attitudes towards the recommended products To build a causal map of CMRM, we used a four step
(H2), purchase intentions (H3) and actual purchase (H4). process suggested by Nelson et al. (2000).

• H1: Compared to TRM, CMRM increases customers’ Step 1: Elicitation of quantitative and qualitative factors
decision satisfaction. To determine the qualitative factors regarding
• H2: Compared to TRM, CMRM increases customers’ mobile phones purchase, an extensive open inter-
positive attitude towards the recommended products. view was performed with 20 experts such as 14
• H3: Compared to TRM, CMRM increases customers’ marketing and MIS doctoral candidates, 2 mobile
intention to purchase the recommended products. phone dealers, and 4 MIS and marketing research
• H4: Compared to TRM, CMRM increases customers’ professors. Our interview used open interview
actual purchase the recommended products. techniques with probes to facilitate the interview
process (Axelrod, 1976). Respondents were asked
about quantitative and qualitative factors that
4. Methodology seem relevant to the mobile phones purchase deci-
sion process. The interviewers did not constrain
4.1. Basics responses to questions. Each interview lasted from
30 to 60 min. After all, seven quantitative factors
As shown in Fig. 2, CMRM consists of two phases to and eight qualitative factors were identified
recommend products. In phase 1, CMRM computes simi- respectively.
larity processing to recommend products that satisfy cus- Step 2: Constructing CM
tomers’ requirements about product functionality The causal statements are first derived from the
belonging to quantitative factors. In the case of mobile interviews with experts. The examples of collected
K.C. Lee, S. Kwon / Expert Systems with Applications 35 (2008) 1567–1574 1571

causal statements through interview with experts along the horizontal and vertical axes of an adja-
are as follows; If the price of mobile phone is high, cency matrix will be the set of concept nodes used
then its practicality is low. If the perceived satisfac- in the causal map. Cells at the intersection of each
tion about mobile phone design increases, then pur- row and column contain a number indicating the
chase intention is high. Based on the derived causal existence, direction and strength of the causal rela-
statements among the 15 factors identified in step tionship between two elements (Smith & Wirth,
1, three MIS research professors who were known 1992). However, we use reachability matrix for
to major in causal maps drew draft causal maps inference with a causal map because the reachabil-
independently. The level of agreement between ity matrix allows the effect of one element on all
the three research professors experts was measured other elements within a causal map, analyzing all
using Kendall’s coefficient of concordance (Seigel, the indirect relationships (Ford & Hegarty, 1984;
1956), which was 0.87 and it was an acceptable Smith & Wirth, 1992). By using the reachability
level of agreement. Conceptually relevant concept matrix, the CMRM can analyze the effect of cau-
nodes were derived from the three raw causal sal relationships among the quantitative and qual-
maps, and regrouped into common words main- itative factors on the recommendation results in a
taining logical relevance that would be understood more in-depth manner.
and interpretable by other experts in the related
fields (Narayanan & Fahey, 1990). Causal rela-
tionships were also refined accordingly in the pro- 4.3. Experiments
cess of concept nodes regrouping. Then all the
results like this were aggregated into a single draft A 2 · 1 factorial design with a within-subject factor was
causal map. used. The within-subject factor, indicating recommenda-
Step 3: Validation of causal map tion types such as TRM and CMRM. For experiments,
To prove the validity of the draft causal map we developed a website where CMRM recommends candi-
induced in step 2, member check was first applied date mobile phones for users. A competing recommenda-
(Lincoln & Guba, 1985). This is done by going tion type is TRM where customers are allowed to express
back to the original three research professors their preferences only about quantitative factors like prod-
and asking their opinion about the concept nodes, uct functionality. Therefore, CMRM is compared with
causal linkages represented on the draft causal TRM in four dimensions, including customers’ decision
map. The process and purpose of this comprehen- satisfaction (H1), as well as attitude towards the recom-
sive check is to test for factual and interpretive mended products (H2), purchase intention (H3) and actual
accuracy and to provide evidence of credibility purchase (H4).
and trustworthiness similar to internal validity in The participants were college students who took one or
confirmatory studies. Final causal map is depicted two of the five undergraduate electronic commerce courses
in Fig. 3. offered by the School of Business Administration. For the
Step 4: Inference with causal map purpose of conducting rigorous experiments, the partici-
The association or the nature of the causal linkage pants were organized into two groups. The 184 pre-test
between two concept nodes is analyzed using an responses from the first group were used to compute simi-
adjacency matrix. The adjacency matrix is an larity distance among a number of mobile phone products
n · n matrix, where n is the total number of con- under consideration. The 256 responses of the second
cept nodes in a causal map. The elements listed group were used to prove research hypotheses. They partic-
ipated on a voluntary basis following the instruction that
bonus points will be given for those who completed surveys
successfully within the time limit. Of the respondents, 136

were male and 120 were female. On average, they were
24.2 years old, and they used the Internet for 21 h/week.
All the participants had previous experience purchasing
some products on the online shopping malls. In particular,
45% had previously purchased mobile phones on the online
shopping malls.
The dependent variables in the research model were mea-
sured using items from established scales. Participants
responded to a series of questions designed to measure their
affective response to the four decision satisfaction items
from Fitzsimons (2000). An established scale using semantic
differential items (Bruner, 1998; Li, Daugherty, & Biocca,
Fig. 3. Final causal map used for recommending mobile phones. 2003) was applied to measure participants’ attitudes toward
1572 K.C. Lee, S. Kwon / Expert Systems with Applications 35 (2008) 1567–1574

the recommended products as well as purchase intentions. Table 1


Actual purchase is measured by frequency of buying prod- Descriptive statistics
uct using of TRM or CMRM. The participants answered Dependent variables Reactance leave
these questions for each of the steps separately. TRM CMRM Total
The CMRM procedure consists of two phases. In phase Decision satisfaction Mean 3.85 4.78 4.32
1, the participants expressed their requirements for each SD 0.98 1.03 1.01
variable. And, CMRM displayed three candidate recom- Attitude towards the Mean 3.69 4.79 4.24
mended products with satisfaction values that are recommended products SD 1.34 1.36 1.35
researched and calculated by similarity processing using
Purchase intentions Mean 3.43 4.57 4.00
the products’ functionality (or quantitative factors). The SD 1.25 1.37 1.31
participants were asked to select one of them or none. In
Actual purchasea Mean 0.75 0.88 0.82
the final of phase 1, participants were then asked to under- SD 0.43 0.33 0.38
take questionnaires. In phase 2, the participants continued a
Actual purchasing = 1, Not purchasing = 0.
with the causal map-driven experimental session and causal
map was displayed to each participant. CMRM redis-
played the three products recommended in the previous The Pearson’s correlation coefficients indicate that the
(second) step. Given this information about the recom- four dependent variables were moderately correlated with
mended products, the participants input preference values each other. Thus, the MANOVA model was applied to test
composed of qualitative factors for each recommended the influence of the online recommendation mechanism
product. Then, the satisfaction value for each product type (TRM vs CMRM) on the four dependent variables.
model, which was calculated in the second step using the The main effect of the online recommendation mechanism
quantitative factors like production functionality, was type was significant (F(4, 252) = 134.7, p = 0.000, p <
revised by the causal map. Based on the revised satisfaction .000). Because the MANOVA results were significant, these
value attached to the recommended products, the partici- results were further analyzed using individual ANOVAs to
pants were allowed to reselect one of the three products examine the effects of the online recommendation mecha-
or none. The participants were then asked to answer the nism type on each dependent variable.
same questionnaire which was used in phase 2.
Table 2
5. Results and discussion Repeated measure ANOVA results
Decision satisfaction DF Mean F-value p
5.1. Results squared
Within-subjects
Using SPSS windows version 12.0, Cronbach’s alpha Online recommendation 1 112.125 339.442 0.000***
was computed to assess the reliability for the four depen- mechanism type
dent variables—customers’ perceived decision satisfaction Error (online recommendation 255 0.330
(0.88), attitudes towards the recommended products mechanism type)
(0.95), purchase intentions (0.93), and actual purchase Attitude towards the DF Mean F-value p
(0.85). Furthermore, the scales for each construct were recommended products squared
tested for internal consistency, indicating that each con- Within-subjects
struct is unidimensional. Since prior research suggests that Online recommendation 1 154.111 359.263 0.000***
experience (Taylor & Todd, 1995) and gender (Gefen & mechanism type
Error (online recommendation 255 0.429 – –
Straub, 1997) influence individuals’ perceptions and use
mechanism type)
of IT, we need to test the influence of experience and gen-
der. Experience in this study includes experience purchas- Purchase intentions DF Mean F-value p
squared
ing products on the online shopping malls, as well as
purchasing mobile products on the online shopping malls. Within-subjects
Online recommendation 1 166.303 361.462 0.000***
We first tested whether demographic differences explained mechanism type
variances in the dependent variables (Suh & Lee, 2005). Error (online recommendation 255 0.460 – –
By applying multivariate regression analysis, we found no mechanism type)
significant covariate effects of gender and experience pur- Actual purchase DF Mean F-value p
chasing products online (F(12, 241) = 1.127, p = 0.456 in Squared
Wilks’ test), and gender and experience purchasing mobile Within-subjects
phones online (F(12, 241) = 0.845, p = 0.657 in Wilks’ Online recommendation 1 1.877 14.671 0.000***
test). Thus, based on the principle of parsimony, we did mechanism type
not include these variables in the subsequent analysis. Error (online recommendation 255 0.128 – –
Table 1 shows the means and standard deviations of the mechanism type)
*p < 0.10, **p < 0.05, ***p < 0.01.
dependent variables.
K.C. Lee, S. Kwon / Expert Systems with Applications 35 (2008) 1567–1574 1573

Further, a repeated-measure ANOVA was applied to tive factors systematically into the recommendation pro-
analyze the effects of the online recommendation mecha- cess. Through the empirical analysis, we found that the
nism type and reactance level on each dependent variable. proposed CMRM can enhance the four dependent vari-
Table 2 shows that the online recommendation mechanism ables. Moreover, the results revealed the importance of
type significantly affects all the dependent variables with a explicitly considering the ELM concept in designing the
99.9% confidence level. For decision satisfaction, CMRM online recommendation mechanisms-related research
(mean 4.78) is significantly better than TRM (mean 3.85), model. However, the usefulness of causal maps should not
proving H1. In terms of the recommended products, the be overemphasized when considering causal relationships
participants showed more positive attitudes when using among the quantitative and qualitative factors clearly and
CMRM (mean 4.79) than using TRM (mean 3.69), proving inducing revised recommendation results for the consum-
H2. Likewise, customers’ purchase intentions for the prod- ers. To summarize, the CMRM surpassed TRM on all four
ucts recommended by CMRM (mean 4.57) were signifi- dependent variables.
cantly higher than that recommended by TRM (mean As an important future research topic, CMRM needs to
3.43), proving H3. Finally, actual purchase, CMRM (mean be further tested empirically with various types of products
0.88 = 225(actual purchase)/256(total)) is significantly bet- and services. In particular, it seems useful to compare
ter than TRM (mean 0.75–192(actual purchase)/256(total)- CMRM effects based on involvement level (high vs low).
total 256), proving H4. In summary, CMRM surpasses
TRM in terms of the three dependent variables with a
References
99.9% statistical confidence level.
Ansari, A., Essegaier, S., & Kohli, R. (2000). Internet recommendation
5.2. Discussion systems. Journal of Marketing Research, 37(August), 363–375.
Axelrod, R. (1976). Structure of decision: The cognitive maps of political
Based on the statistical results mentioned in section elites. Princeton, NJ: Princeton University Press.
Balabanovic, M., & Shoham, Y. (1997). Content-based, collaborative
above, we found the following outcomes.
recommendation. Communication of the ACM, 40(3), 66–72.
First, the possible advantages of using causal maps in Bargh, J. A. (2002). Losing consciousness: Automatic influences on
online recommendation mechanism were clearly manifested consumer judgment, behavior, and motivation. Journal of Consumer
through rigorous experiments. Since there is no study utiliz- Research, 29(2), 280–285.
ing causal maps that incorporates qualitative factors into Beach, L. R. (1993). Broadening the definition of decision making: The
role of pre-choice screening of options. Psychological science, 4(4),
the personalized recommendation process, we suggest that
215–220.
future research builds on the results of the current study. Bonham, G. M., & Shapiro, M. J. (1976). Explanation of the unexpected:
Second, CMRM was very robust in enhancing consum- The Syrian intervention in Jordan in 1970. In R. Axelrod (Ed.), Structure
ers’ perceived decision satisfaction and attitudes towards decision (pp. 113–141). Priceton, NJ: Princeton University Press.
the recommended products, as well as positive purchase Bruner, G. C. (1998). Standardization and justification: Do a scales
measure up? Journal of Current Issues and Research in Advertising,
intentions and actual purchase. The improvement in con-
20(1), 1–18.
sumer satisfaction can be attributed to CMRM’s enabling Eden, C. (1989). Using cognitive mapping for strategic options develop-
consumers to systematically analyze the possible influence ment and analysis. In J. Rosenhead (Ed.), Rational analysis for a
of qualitative factors on a priori quantitative factors-based problematic world (pp. 21–41). Chichester: Wiley.
judgments. Therefore, using CMRM theoretically contrib- Eden, C., & Ackermann, F. (1989). Strategic options development and
analysis (soda) – using a computer to help with the management of
utes to helping consumers elaborate on the recommended
strategic vision. In G. Miller (Ed.), Knowledge-based management
products, proving the validity of ELM in online recom- support systems (pp. 198–207). UK: Ellis Horwood.
mendation mechanism studies once again (Tam & Ho, Eden, C., Jones, S., & Sims, D. (1979). Thinking in organizations. London,
2005). England: Macmillian Press Ltd..
The practical implications of this study are as follows: Fitzsimons, G. J. (2000). Consumer response to stock outs. Journal of
Consumer Research, 27(2), 249–266.
First, CMRM can be easily implemented on the web,
Ford, J. D., & Hegarty, W. H. (1984). Decision makers’ beliefs about the
allowing target consumers to experience a real recommen- causes and effects of structure: An exploratory study. Academy of
dation process. Management Journal, 27(2), 271–291.
Second, a wide variety of qualitative factors that seem Gefen, D., & Straub, D. W. (1997). Gender differences in the perception
crucial to most consumers can be pre-defined through a and use of e-mail: An extension to the technology acceptance model.
MIS Quarterly, 21(4), 389–400.
survey, and incorporated into causal maps. Thus, such cau-
Haubl, G., & Trifts, V. (2000). Consumer decision making in online
sal maps will improve the personalization effect on the tar- shopping environments: The effects of interactive decision aids.
get consumer’s purchase intentions. Marketing Science, 19(1), 4–21.
Hoch, S. J., & Schkade, D. A. (1996). A psychological approach to
6. Concluding remarks decision support systems. Management Science, 42(10), 51–64.
Huff, A. S. (1990). Mapping strategic thought. Chichester, UK: John Wiley
& Sons.
This study proposed a new online recommendation Klein, J. H., & Cooper, D. F. (1982). Cognitive maps of decision-makers
mechanism using causal maps to enhance consumers’ online in a complex game. Journal of the Operational Research Society, 33(1),
shopping decisions and behaviors by incorporating qualita- 63–71.
1574 K.C. Lee, S. Kwon / Expert Systems with Applications 35 (2008) 1567–1574

Kwahk, K. Y., & Kim, Y. G. (1999). Supporting business process redesign Payne, J. W. (1982). Contingent decision behavior. Psychological Bulletin,
using cognitive maps. Decision Support Systems, 25(2), 155–178. 92, 382–402.
Lampel, J., & Mintzberg, H. (1996). Customizing customization. Sloan Petty, R. E., & Cacioppo, J. T. (1981). Attitudes and persuasion: Classic
Management Review, 38(1), 21–30. and contemporary approaches. Dubuque, IA: W.C. Brown.
Lee, Y.E., & Benbasat, I., (2005). The influence of effort, accuracy, and Petty, R. E., & Cacioppo, J. T. (1986). The elaboration likelihood model
negative emotions on product choice-strategies: Evaluations of rec- of persuasion. Advanced Experiment Social Psychology, 19, 123–
ommendation agents on desktops versus handheld devices. In Pro- 205.
ceedings of the eleventh Americas conference on information systems Ramaprasad, A., & Poon, E. A. (1985). Computerized interactive
(pp. 2325–2329). technique for mapping influence diagrams (MIND). Strategic Man-
Lee, K. C., & Kwon, S. J. (2006). The use of cognitive maps and case- agement Journal, 6(4), 377–392.
based reasoning for B2B negotiation. Journal of Management Infor- Schafer, J. B., Konstan, J. A., & Riedl, J. (2001). E-commerce
mation Systems, 22(4), 337–376. recommendation applications. Journal of Data Mining and Knowledge
Lee, H. J., & Lee, J. K. (2005). An effective customization procedure with Discovery, 5(1–2), 115–152.
configurable standard models. Decision Support Systems, 41(1), Seigel, S. (1956). Nonparametric statistics for the behavioral sciences. New
262–278. York: McGraw-Hill.
Li, H., Daugherty, T., & Biocca, F. (2003). The role of virtual experience Senecal, S., Kalczynski, P. J., & Nantel, J. (2005). Consumers’ decision-
in consumer learning. Journal of Consumer Psychology, 13(4), 395–408. making process and their online shopping behavior: A click stream
Lincoln, L. S., & Guba, E. G. (1985). Naturalistic inquiry. Thousand Oaks, analysis. Journal of Business Research, 58, 1599–1608.
CA: Sage Publications. Shugan, S. M. (1980). The cost of thinking. Journal of Consumer Research,
Luce, M., & Bettman, J. R. (2001). In J. W. Payne (Ed.), Emotional 7, 99–111.
decisions: Tradeoff difficulty and coping in consumer choice. Chicago: Smith, K. L., & Wirth, A. (1992). Measuring differences between cognitive
University of Chicago Press. maps. Journal of the Operational Research Society, 43(12), 1135–
MacInnis, D. J., & Jaworski, B. J. (1989). Information processing from 1150.
advertisements: Toward an integrative framework. Journal of Market- Suh, K. S., & Lee, Y. E. (2005). The effects of virtual reality on consumer
ing, 53(4), 1–23. learning: An empirical investigation. MIS Quarterly, 29(4), 673–697.
Maes, P., Guttman, R. H., & Moukas, A. G. (1999). Agents that buy and Tam, K. Y., & Ho, S. Y. (2005). Web personalization as a persuasion
sell: Transforming commerce as We know it. Communications of the strategy: An elaboration likelihood model perspective. Information
ACM(March), 81–91. Systems Research, 16(3), 271–291.
Montazemi, A. R., & Conrath, D. W. (1986). The use of cognitive Taylor, S., & Todd, P. (1995). Assessing IT usage: The role of prior
mapping for information requirements analysis. MIS Quarterly, 10(1), experience. MIS Quarterly, 19(4), 561–570.
45–56. Warren, K. (1995). Exploring competitive futures using cognitive map-
Murthi, B. P. S., & Sarkar, S. (2003). The role of the management sciences ping. Long Range Planning, 28(5), 10–21.
in research on personalization. Management Science, 49(10), West, P. M., Ariely, D., Bellman, S., Bradlow, E., Huber, J., Johnson, E.,
1344–1362. et al. (1999). Agents to the rescue? Marketing Letters, 10(3), 258–
Narayanan, V. K., & Fahey, L. (1990). Evolution of revealed causal maps 301.
during decline: A case study of admiral. In A. S. Huff (Ed.), Mapping Zhang, W. R., Chen, S. S., & Bezdek, J. C. (1989). Pool2: A generic system
strategic thought (pp. 107–131). Chichester, UK: John Wiley & Sons. for cognitive map development and decision analysis. IEEE Transac-
Nelson, K. M., Nadkarni, S., Narayanan, V. K., & Ghods, M. (2000). tions on Systems, Man and Cybernetics, 19(1), 31–39.
Understanding software operations support expertise: A revealed Zhang, W. R., Wang, W., & King, R. S. (1994). A-Pool: An agent-
causal mapping approach. MIS Quarterly, 24(3), 475–507. oriented open system shell for distributed decision process modeling.
Nissen, E. M., & Sengupta, K. (2006). Incorporating software agents into Journal of Organizational Computing, 4(2), 127–154.
supply chain: Experimental investigation with a procurement task.
MIS Quarterly, 30(1), 145–166.

You might also like