Effects of online recommendations on consumers' willingness to pay

Gediminas Adomavicius, Jesse Bockstedt, Shawn Curley, Jingjing Zhang

Research output: Contribution to journalConference articlepeer-review

9 Scopus citations

Abstract

We present the results of two controlled behavioral studies on the effects of online recommendations on consumers' economic behavior. In the first study, we found strong evidence that participants' willingness to pay was significantly affected by randomly assigned song recommendations, even when controlling for participants' preferences and demographics. In the second study, we presented participants with actual system-generated recommendations that were intentionally perturbed (i.e., significant error was introduced) and observed similar effects on willingness to pay. The results have significant implications for the design and application of recommender systems as well as for e-commerce practice.

Original languageEnglish (US)
Pages (from-to)40-45
Number of pages6
JournalCEUR Workshop Proceedings
Volume893
StatePublished - Dec 1 2012
Event2nd Workshop on Human Decision Making in Recommender Systems, Decisions@Recsys 2012 - In Conjunction with the 6th ACM Conference on Recommender Systems, RecSys 2012 - Dublin, Ireland
Duration: Sep 9 2012Sep 9 2012

ASJC Scopus subject areas

  • Computer Science(all)

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