ITAA-KSCT Joint Symposium

Good or Better; The Effect of Comparative Mindset with Recommended Products on Product Evaluation and Purchase Decision

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Abstract

Recommender system elicits the interest of users and makes recommendations to assist product search and evaluation (Xiao & Benbasat, 2007). Recommender system is an effective marketing tool by generating 35 percent of revenue on Amazon and 75 percent of selection on Netflix (Mackanzie, Meyer, & Noble, 2013). In order to understand how recommender systems affects consumer decision making, this study investigates the effect of comparative vs. decision-only mindsets on product evaluation and purchase decision. A 2 (Comparative vs. Decision only mindset) X 2 (Hedonic vs. Utilitarian product) between-subjects experiment was conducted. The findings suggest that comparing with alternatives alters the value perception and decision even though the actual value of the product remains the same. Value perception mediates effects of mindset on preference and purchase. The result provides implications that recommender system can leverage consumers to perceive relative value and promote purchase decision. Online retailers can boost sales by making comparison easier between products and convincing customers of selecting a better option.

How to Cite:

Kim, D. & Im, H., (2018) “Good or Better; The Effect of Comparative Mindset with Recommended Products on Product Evaluation and Purchase Decision”, International Textile and Apparel Association Annual Conference Proceedings 75(1).