Impact of system- vs. consumer- generated recommendations on decision factors: A differential, moderating and mediating perspective

Document Type

Article

Publication Date

3-1-2023

Abstract

Online product recommendation (OPR) plays critical role in purchasing products, but less attention has been given to examine the differential impact of distinct recommendation sources on customer's decision beliefs and behaviour. This study investigates and unfolds the distinct effects of system generated recommendation (SGR) and consumer generated recommendation (CGR) on customers' decision effort and decision quality along with the analysis of their mediating effects on OPR reuse and purchase intentions. The study tests a conceptual model based on effort-accuracy model linking SGR and CGR to perceived decision effort and decision quality in two different product settings (search versus experience products). An online survey is conducted with Amazon customers and results of valid 482 responses reveal that users of CGR (compared to SGR) express higher decision quality, while SGR (compared to CGR) is more effective in minimizing users' decision effort. Decision factors subsequently mediate the effects of OPR use on OPR reuse and purchase intentions. Further, CGR is found to elicit higher decision quality for experience products, while SGR is effective in minimizing decision effort for search products.

Keywords

System verses consumer generated recommendation, Decision effort, Decision quality, OPR reuse intention, Purchase intention

Divisions

Faculty_of_Business_and_Accountancy,Operations_and_Management_Information_Systems

Publication Title

Current Psychology

Volume

42

Issue

9

Publisher

Springer

Publisher Location

ONE NEW YORK PLAZA, SUITE 4600, NEW YORK, NY, UNITED STATES

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