Universität zu Köln

Li, Xitong, Grahl, Joern and Hinz, Oliver . How Do Recommender Systems Lead to Consumer Purchases a A Causal Mediation Analysis of a Field Experiment. Inf. Syst. Res.. S. 1 - 20. CATONSVILLE: INFORMS. ISSN 1526-5536

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Abstract

How do recommender systems induce consumers to buy? Extant research neglects to examine the causal paths through which the use of recommender systems leads to consumer purchases. In this study, we conduct a randomized controlled field experiment on the website of an online book retailer and explore the causal paths by employing the recently developed causal mediation approach. Not surprisingly, the results show that the presence of personalized recommendations increases consumers' propensity to buy by 12.4% and basket value by 1.7%. More importantly, we find that these positive economic effects are largely mediated through affecting the consumers' consideration sets. Specifically, the presence of personalized recommendations increases both the size of consumers' consideration sets (breadth) and how intensively they are involved with each alternative in consideration (depth). It is the two changes that go on to increase consumers' propensity to buy and basket value. Furthermore, we find that the proportion of the total effects mediated through the breadth of consideration set is much larger and more significant than that mediated through the depth.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Li, Xitong UNSPECIFIED UNSPECIFIED UNSPECIFIED Grahl, Joern UNSPECIFIED UNSPECIFIED UNSPECIFIED Hinz, Oliver UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-578315
DOI:	10.1287/isre.2021.1074
Journal or Publication Title:	Inf. Syst. Res.
Page Range:	S. 1 - 20
Publisher:	INFORMS
Place of Publication:	CATONSVILLE
ISSN:	1526-5536
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language LONG TAIL; INFORMATION OVERLOAD; EMPIRICAL-ANALYSIS; SEARCH COSTS; IMPACT; CHOICE; MODEL; NETWORKS; IDENTIFICATION; INFERENCE Multiple languages Information Science & Library Science; Management Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/57831